INDIA SURGING AHEAD 2019 IIII Unarguably, India’s growth narrative has been unicorns globally, with our start-ups offering For any developing economy, infrastructure is the outcome of a bouquet of transformative, innovative solutions for the country and the the backbone of development. And, in the last far-reaching reforms and progress shown world. five years, we have focussed on bolstering our in key sectors of agriculture, services and infrastructure by constructing 40 km of road on manufacturing. This helped to push the country’s It is no surprise then that India attracted a record a daily basis, modernising railways, enhancing growth rate to a robust 7.2% in the fiscal year US$ 239 bn worth Foreign Direct Investments road and air connectivity through our Udaan 2018-19, which is an increase from 6.7 % in (FDI) from May 2014 to June 2018. This period program and setting up 100 smart cities. Our GLOBAL the previous fiscal. Largely resilient to external also witnessed the liberalisation of the country’s US$ 14.6 bn Smart Cities program, which will pressures we did not just generate a high growth FDI policy, allowing most FDI to come through transform 100 urban and semi-urban centres rate, we were also able to contain double-digit the automatic route. This sentiment of investor into citizen friendly, sustainable cities powered inflation and restore fiscal balance. confidence is echoed by the fact that India by state-of-the art technology, is fast gaining figures as one of the two developing countries traction. Our flagship Sagarmala project too aims One of the factors that work in India’s favour to score among the top 10 in A.T. Kearney’s to develop ports along our lengthy coastline for is its demography. Demographics can change Foreign Direct Investment Confidence Index. quicker turnaround in handling of import and the pace and pattern of economic growth in a India became the top recipient of Greenfield FDI export cargo. PARTNER country. And, India’s sprawling 1.3bn population inflows from the Commonwealth as well, as per base offers a significantly large consumer market a trade review released by the Commonwealth In the next five years, we expect our policy driven and a cost-efficient labour force. Moreover, in 2018. growth to make India emerge as an economic 65 % of India’s population fall in the age group of powerhouse across the Asia-Pacific region and India is back on track as the world’s 18 years to 35 years. This young, digitally savvy India made progress in other international beyond. fastest growing economy. We are cohort with rising purchasing power are evoking rankings by moving up to the 40th position on the interest of global corporate giants. Global Competitiveness Index 2017-18. Another I hope this India Surging Ahead document will proud to note that at USS$2.6 trillion, significant development has been that India’s serve as a handbook to understand our vast Investors are drawn to India encouraged by balance of payments has improved and we have country better and provide insights and details of we are the aworld’s sixth largest government initiatives to transform the way strengthened our foreign exchange reserves, all our multiple initiatives, programs and sectors. economy accounting for 15% of of doing business in India. A number of next which stands at US$ 398 bn as of February 2019. generation structural reforms have paved the global growth. And, we will sustain way for a sustainable high growth. The launch Of late, India is an active participant in key global this momentum and surge ahead to of a unified tax system, the Goods and Services conversations. Committed to clean energy, we Tax (GST), the Insolvency & Bankruptcy Code have been at the forefront of global efforts to become an US$5 trillion economy and single-point interfaces have pushed India address climate change issues. As a signatory of up to the 77th position on the 2019 World Bank the Paris Declaration, we helped establish the by 2025. Ease of Doing Business index. The emphasis International Solar Alliance, the first treaty based on indigenous manufacturing through ‘Make inter-governmental entity headquartered in New Sushma Swaraj Union Minister for External Affairs, in India’ program has also sparked investor Delhi. We are also fast moving towards our goal SMT. SUSHMA SWARAJ interest. India has the 3rd highest number of to achieve an overall renewable energy capacity of 175 GW by 2022. 2 3 29.3% 14.6% 3.7% 3.8% Rise in per capita net income Rise in overall imports: CPI inflation Industrial production growth INDIA’S (2014-15 to 2017-18) US$479.5 bn (April-Dec 2018) (April-Dec 2018) (2014-15 to 2017-18) 12.6% @ US$510.4 bn 20% 13.8% Rise in overall exports: Rise in merchandise imports External debt at end-Sept 2018 Rise in forex reserves US$396.7 bn (April-Dec 2018) ECONOMY (April-Dec 2018) (14-15 to 17- 18) 4.8% US$389 bn @ 3.4% of GDP US$900 bn US$2.6 trn Inflation (April-Dec 2018) Budget outlay (2019-20) Fiscal deficit estimated Export target by 2020 Indian economy - 3.1% of global GDP (2017) (2019-20) 7.3% 7.2% 7.4% CONTRIBUTION TO GDP GDP growth projected for 2014-15 to 2017-18 GDP growth estimated in 2018-19 GDP growth projected for 2019-20 Agriculture, industry and services sectors grew by 3.8%, 7.8% and 14.4% 31.5% 54.2% US$33.5 bn 7% 4.6% 7.3% in 2018-19 FDI inflow GVA growth estimated for IIP growth Agriculture Industry Services (April-Dec 2018) (2018-19) (April-Dec 2018) 4 5 2nd largest +74% population base : 1.3 bn Steadily improving literacy INDIA’S rate 8th largest 53.8% in Science/Engg graduate Labour participation rate DEMOGRAPHIC population (2017) STRENGTH Empowered with unique demographic advantages, India is racing to be among the most developed economies in the next decade. BY 2020 BY 2030 India’s young workforce is gearing up for playing a major role in: 29 years - average age in India 32 years - average workforce age • Driving economic progress • Improving labour productivity World’s youngest population India’s workforce will have an • Increasing domestic manufacturing average age of 32 years against • Enhancing revenue from services 47 mn surplus workforce in India that of 43 years in China and 39 • Bolstering indigenous innovations years in USA • Enhancing India’s purchasing power 6 7 HIGHLIGHTS OF BUDGET 2019-20 EASE OF DOING +US$10.5 bn income +7% sectoral growth, with support to farmers under a separate Department of PM-KISAN policy Fisheries to aid 14.5 mn livelihoods 100 mn workers in the BUSINESS unorganised sector to US$980 mn, all-time high, receive pension benefits allocation for MSMEs given by under the PM-SYM policy the Export Promotion Cell A World Bank ranking credits India 29 Indian states’ and 7 UTs’ ranked by Ease Invest India : Investor facilitation cell US$44.7 bn earmarked of Doing Business. Launched by Central established to guide, assist and handhold Single window clearance with an improved environment for for defence and security: for ease of shooting films doing business Government in 2018, along with the World investors during the entire life cycle of a Bank business Highest ever allocation extended to Indian filmmakers 65 points crossed by India in the last 4 US$33.5 bn of foreign direct investment (FDI) 7 Ease of Doing Business problems being years, to reach 77th rank on World Bank’s A National Artificial inflow reported during April to December 2018 resolved using technology, under a grand Ease of Doing Business 2019 report challenge launched by PM Narendra Modi Intelligence Portal to be US$396.7 bn worth of total exports reported developed as part of a 25+ leading policy initiatives undertaken by over April-December 2018-19, recording Indian Government since 2014 to facilitate Government initiative on AI 13.8% growth from the previous year economic growth Top 50 in Ease of Doing Business: India’s 20+ Central Government services integrated target for 2020 with the e-Biz Single Window IT Platform 8 9 Biotechnology Education India has one of the largest India is among the world’s top 12 networks of higher education biotechnology destinations institutions in the world and MAKE IN is focused on improving Chemicals primary, secondary and higher education India’s chemicals sector covers 80,000 products expected to INDIA reach US$ 300 bn by 2025 25 key sectors have been coverd under the Government of India’s Electrical Make in India initiative Machinery Construction India’s installed electricity India needs investments of generation capacity is reported over US$ 700 bn by 2022 in at around 350 GW Agriculture Auto Components infrastructure construction 2nd in the world in terms of farm Original Equipment output, agriculture is the backbone Manufacturers contribute 2.3% Electronic of Indian economy, contributing Defence of India’s GDP, employing over 3 majorly to the country’s GDP Systems mn people Manufacturing India, one of the world’s largest India plans to spend US$ 130 bn electronics markets, to grow to on military modernization over US$ 400 bn by 2025 Automobile Aviation the next 5 years Indian auto industry is the world’s India is currently the world’s 4th largest, manufacturing 25 mn fastest growing and 3rd largest vehicles annually domestic civil aviation market 10 11 Food Processing Railways Textile Indian food processing industry Mining India’s rail network, the 3rd India has emerged as the only accounts for 32% of the nation’s Indian mining industry, which largest in the world, spreads over place where handloom fabrics total food market produces 95 minerals, is 115,000 km and moves are