Interdependence.. Integration &Co-Creation:

Make in India

Infrastructure development &

Manufacturing Excellence

Jaipuria Management Institute, Lucknow

March 22nd ,2015

The Icon …

Infrastructure and Manufacturing Excellence: “MAKE IN INDIA”

Chennai Metro Rail Project

AIIMS- Digha elevated road

Nathani Heights Mumbai Bajoli Holi HEP

Mayapur ISKCON temple Godavari Bridge MbPT Offshore Container Terminal

Signature Bridge

Infrastructure & Manufacturing…Interdependence• Infrastructure development pushes demand on manufacturing

(multiplier)

• India's is fifth largest manufacturer of commercial vehicles

• India is the second largest two wheeler manufacturer

• India’s transport sector contribute 6% of GDP

• 4.86 million Kms of road network

• National Highway to grow to 100,000 Kms by 2017

• 87 new Ports approved

• 20% of automobile manufactured gets exported

• Container demand to grow from 6.5 Mn T.E.U to 21 Mn T.E.U by 2017

Why Make in India…• A robust demographic growth with Median age 26 years

• High potential Economy with GDP per capita slated to grow by 20%

• USD 1,500 to USD 1,800 within 2017

• 12th largest number of High Net Worth Individuals with growth of 20.8%

• Top 3 Automobile market in the world with 5% of global sales

• Growing urbanization will fuel economy and drive demand upwards

• 67% of GDP contributed by urban India

• 300 Million people will move to town in next two decades

• Rising cost of Labour in China

Land of contrast…• Almost 70% of working age population have no education past primary

level

• Only 3% of Indian population pay Income tax

• At market exchange rates India GDP ranks 10th with Italy, (same at 1980)

• Manufacturing contributes only 15% of GDP and 11% of jobs

• World Bank ranks India 142nd in ease of doing business

• Urbanization is the largest contributor to menace of Pollution

• 80% of manufacturing jobs in organizations less than 50 people

• Poor spend on R&D eg. M&M spend is 1% of the Volkswagen’s

• “How would we like to see India “??

The un-smart Cities…Where is the “CITIZEN”

The Game Changer…Delhi Mumbai Industrial Corridor

• “Global Manufacturing & Trading Hub” on a Dedicated Freight Corridor

• Set Quality Industrial Investment & World class infrastructure facilities

• To Double employment potential -14.87% CAGR

• To Triple Industrial Output -24.57% CAGR

• To Quadruple Exports from the region -31.95% CAGR

Infrastructure Linkages with Power Plants Water Supply High Capacity Transportation logistics Skill Development Local population employment

A low down view …• On the alignment of 1483 KM DFC-mostly aligned to existing railway track

• End Terminal at JNPT Mumbai , originating from Tuglaqabad and Dadri

• Uttar Pradesh, NCR, Haryana, Rajsthan, Gujrat, Maharashtra

• Distribution –Rajasthan 39%, Gujarat 38%,Haryana and Maharashtra-10%

• 9 Junctions for exchange of traffic between existing system/DFC

• Project Influence area-436,486 sq km-14% of Area of India

• 178 Million population -17% of Indian Population

• DMIC states contribute 50% of agricultural produce of principal crops

• DMIC states contribute 60% of exports

• 52 % of FDI equity comes in these states

Interdependency

A low down view …Criteria & Rationale• Investment Regions-11(Minimum 200 sq m) At-least one in each state to expand economic benefit

On the alignment of 1483 KM DFC-mostly aligned to existing railway track

Proximity to Metros

Expansion Possibility or development of Green field projects

Availability to Land Parcels• Industrial Areas-13(Minimum 100 sq m)

To take advantage of inherent strengths eg, Haryana for automobile ancillary

Transform underdeveloped regions

Objective to facilitate domestic and exports led manufacturing facilities

Above All ….The CITIZEN to be the fulcrum for “planning & development”

Challenges …• Skill Sets-India would need 700 million skilled workforce by 2022 Organic Retail-102 Million Building & Construction -84 Million Auto Sector-64 Million Health Care-50 Million Textiles &Clothing-48 Million Tourism-36 Million

• Land Acquisition and Reforms-A critical social and environment impact• Financing NPAs crossed 2 lakh crore above 5% of total advances Banks exposure of stressed advances mainly in Infrastructure sector Banks exposure to Infra sector is INR 8 Trillion Sometime back 371 projects were pending with PMG for approval Additions to Loans of Infra and Power Company loans has outpaced Asset

Addition

The opportunities …..SMART CITIES..SMART WAY Knowledge Centers and Skill enhancement-Institutes ,R&D Decisive Policy on NPAs…5:25 scheme for Infrastructure projects to match long

term cash flows

GST implementation, Retrospective Tax abolition, Reforms of Labour Laws and Factories Act to incentivize scaling up

Enhance Competitiveness for “High Quality Culture”

Transparent procedures in Tendering and government procedures of spending

“Citizen Participation” in decision making

“Entrepreneurial Mindset “

“Urbanization” to reach people and “people “don’t live in slums in Urban India

Journey begins here…with you

Urbanisation reaching “Citizens”