edelman - note on "make in india" campaign
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Earlier today (25 September 2015), Prime Minister Modi launched the, “Make In India” campaign during a convention at Vigyan Bhavan that was attended and addressed by eminent leaders from across international and Indian industries. The campaign is aimed at making India a prominent manufacturing hub through inflow of new technology and capital while facilitating the creation of new jobs. As a part of the campaign, the government has also established a dedicated cell to answer inquiries in a time-bound manner and to monitor regulatory processes. A statement by the government stated that Invest India will be, “the first reference point for guiding foreign investors on all aspects of regulatory and policy issues and to assist them in obtaining regulatory clearances.” Launched ahead of his highly anticipated visit to the US between 26-30 September, the Prime Minister’s campaign and speech address the global investor community, and demonstrated his commitment to increasing investor confidence and driving growth of India’s manufacturing sector. Stating that industry needs to create opportunities for employment, he said the term, “FDI,” for the domestic industry needed to expand to, “First Develop India,” and not, “Foreign Direct Investment.” Several industrialists present at the event also regaled the campaign and Prime Minister for increasing the opportunities to making India a more globally-integrated economy. We are happy to share a note compiled by Edelman that discusses the key highlights of the event and speeches.TRANSCRIPT
Launch of “Make in India” Campaignby the Government of India
September 25, 2014
Make in IndiaLaunch of the Make in India campaign
The “Make in India” slogan was first used in PM Narendra Modi’s Independence Day speech on Aug 15th.
The vision was to transform India into a global manufacturing hub and spark a new industrial revolution.
The official campaign was launched today with ministers, high ranking bureaucrats, business leaders and
international dignitaries in attendance. Nearly 3,000 companies from 30 countries participated in the
event. Minister of State for Finance, Commerce & Industry Nirmala Sitharaman, Power Minister Piyush
Goyal, MSME Minister Kalraj Mishra, Labour Minister Narendra Singh Tomar, and Textile Minister Santosh
Singh Gangwar, among others, were present at the gathering. Some of the most influential business
leaders gave wind to the PM’s vision. The highpoint of the event was the launch of the “Make in India”
logo, website and brochure.
At present, manufacturing contributes 15 percent to India’s GDP. As part of the campaign, 25 sectors have
been identified where India can become the leader. For these sectors, growth drivers, investment
opportunities, FDI and sector policies, and reasons to invest have been identified, all of which are
accessible on the newly launched “Make in India” website (www.makeinindia.com).
Make in IndiaPM Modi Exhorts the World to “Make in India”
Need to boost investor sentiment
Look at FDI in a two-fold manner: “First Develop India” vs. “Foreign DirectInvestment”
Ensure “corporate government responsibility” for effective governance
Boost manufacturing to help growth of the middle class and create jobs
Develop a growth oriented environment to enhance ease of doing business
Develop a “3D” outlook: tap democracy, demography and demand
Channelise India’s rich demographic dividend for competitive advantage
Train manpower in an industry-aligned fashion
Implement “Digital India” for an informed citizenry
Rollout a “Look East and Link West” approach
Envision integrated clusters with roads, rails, airports and associated infrastructure
Ensure State and Centre coordination for export promotion
Make in IndiaCorporates Voice Support
India’s strengths: vast talent pool, a market with scale and growth
India needs to address:
‐ Infrastructure
‐ Comprehensive tax and duty structures
‐ E-governance systems
‐ Energy efficiency
‐ Improve employability of our people
‐ Reform labor laws without sacrificing safety nets
‐ Will to execute relentlessly
Enabling decisions taken by government in the last few months
‐ Focus on training and skill development
‐ Development of infrastructure and smart cities
‐ Reversal of inverted tax structure
‐ Rolling out Goods and Service Tax
‐ Creation of financial incentives for SMEs
Group Perspective: The Tata Group of companies remains committed to supportingIndia’s development. The company is present in 95 different manufacturing businessesand has trained over 30,000 people at TATA training centers across the country
“We in the Tata Group welcome PMModi's Make in India programme. It’san opportunity to make India trulyglobally competitive”
Cyrus MistryChairman, Tata Group
Make in IndiaCorporates Voice Support
India’s strengths: rapidly growing car production and demand, low costs
India needs to address:
‐ Factors that adversely affect the competitiveness of manufacturing
‐ Increasing costs of production in India because of various government policies, procedures, regulations and the waysome of the laws are implemented
Group Perspective: Maruti Suzuki was amongst the very first multi-national corporation companies to start a majormanufacturing operation in India. The company has effectively implemented work practices based on Japanese experiences,but modified these for India. This has resulted in growth of productivity, improvement in quality and lower costs
India’s strengths: capability, as is evident from the success of Indian scientists on Mangalyaan Mission
India needs to address:
‐ Need for global competitiveness
‐ Openness to capital and expertise from all over the globe
‐ Training of youth to contribute to the make in India vision
‐ Connection of goods and services to all markets; the GST can enable this
Group Perspective: Reliance is India’s largest exporter – it exports to over 140 countries. The group is slated togenerate 1,25,000 new jobs in 12-15 months
Kenichi AyukawaMD & CEO, Maruti Suzuki
Mukesh D. AmbaniChairman & MD, RIL
Make in IndiaCorporates Voice Support
India’s strengths: blend of frugal and low cost innovative designs which has carved a unique position for Indian goods in global markets
India needs to address:
‐ Servicing global markets to attain true competitiveness
‐ Develop the organizational mindset to think
‐ Prepare an educated workforce of thinkers and problem solvers, and not rote learners
Group Perspective: The group exports 90 percent of total products and solutions. Wipro Infrastructure Engineering is alocally designed and developed hydraulic component manufacturer. The group makes products suitable for extremeclimates; these are indigenously designed in India. Furthermore, even 80 percent raw material is sourced from India
India’s strengths: global IT hub, talent, entrepreneurship, raw material
India needs to address:
‐ Creation of 1 million jobs per month to service the demographic dividend
‐ Balanced and sustainable growth
Group Perspective: A large portion – 80 percent – of the group’s revenue comes from manufacturing in India. Itis now leveraging its global position to bring cutting edge technology to India. Multiple batches of engineersare also sent abroad for global training. The group is hopeful that “dreaming big and imagining bold” toachieve what was once not possible will galvanize India’s economy
Azim PremjiChairman, Wipro
Kumar Mangalam BirlaChairman, Aditya Girla Group
Make in IndiaCorporates Voice Support
India’s strengths: the “epicenter” of innovation; young, skilled, enthusiastic workforce; excellent quality of work
Group Perspective: The group signed an agreement with Tata Advanced Systems in 2011 for aircraft, which is now inservice with Indian Air Force. It also works towards simulated training for civil airline players, training pilots from acrossthe globe. The group also has strengths in renewable energy sector, and has harnessed ocean energy with wave andtidal systems. The group has promised to work together to build additional workforce in defence and systemintegration, which will be encouraged by a supportive government
India’s strengths: quality of leadership, boldness of vision and simplicity of communication
India needs to address:
‐ Governance with passion, insight and foresight. From shop floor to management, everyone must readily grasp the organization strategy; the right strategy to move India forward, with jobs creation being a key focus area
‐ Benchmark with the finest in the world in extreme manufacturing competitiveness
‐ Capital doesn’t come from mere invitation. It goes where it can multiply. Meet deficit by exploring new value chains
Group Perspective: ITC has developed areas of social forestry, which have generated 70 million man days of employment. Itis also the 2nd largest hotel chain and the world’s greenest chain. The group is hopeful of ease of doing business in MadhyaPradesh, which is its next investment destination
Phil ShawCEO, Lockheed Martin India
Y C DeveshwarChairman, ITC Ltd.
Make in IndiaCorporates Voice Support
India’s strengths: positive sentiment, huge potential and local talent of engineers
India needs to address:
‐ System of industrial clearance
‐ Continued momentum of reforms
Group Perspective: The group has a pan India dealer network and service points. The group has a “local for localapproach”. There is optimism that the government will look at labour reforms to reach worldwide productivity levels
India’s strengths: large workforce, large market for various products and services
India needs to address:
‐ Linkage between demographic dividend and economic growth
‐ Creation of more jobs in the next decade
‐ Production of high quality products at competitive cost
‐ Ease of doing business, implementation of sector specific policies
‐ Skill development
Group Perspective: The group foresees working together with the government on this journey, with the campaign being agrowth driver for the economy. The manufacturing sector is expected to add 90 million jobs over the next decade
Franz HauberExecutive Director, Bosch
Chanda KocharCEO, ICICI
Make in India
Sectors Covered – 25 – statistics, policies, growth drivers, foreign investment, agencies
Live Projects - Delhi-Mumbai Industrial Corridor (DMIC), opportunities across the value chain including PPP, Contractors/ Consultants, O&M Operators,Equipment Suppliers, Rolling Stock Suppliers and Financing
Policies - new initiatives, foreign direct investment, intellectual property facts, national manufacturing
Contact - enquiry form for queries along with the contact details of the investor facilitation cell
FAQ/ search - lists all content related to the word that one searches in the tab
Social Media - links to various social media platforms including Facebook, Twitter, Google Plus and YouTube
The “Make in India” Website to Support Investment
Make in India
What Modi Promised What’s up on the Website
Two-Fold Look at FDI
“While FDI is an opportunity for the business community outsideIndia, it is a responsibility for Indian citizens. First Develop Indiashould go along with Foreign Direct Investment.”
Identification of the FDI Policy of each of the 25 focus sectors, several ofwhich are liberalised
Overview of India’s broader FDI policy – definitions, caps, taxation etc. List of foreign investors already at play in the sectors
Need to Change Investor Sentiment
“Investors should feel hopeful that their problem will be solvedthrough effective and not just good governance. Investors need asense of security for their investment, the prospect of growth andeventually profit.”
Online contact form to get concerns addressed by the “InvestorFacilitation Cell”
Online query form to get answers to a broad range of sectoralissues/FAQs
Visionary Outlook
“It is important to look ahead at areas we haven’t looked at before.This brings up the need to envision integrated clusters – roads,rails, airports and associated infrastructure.”
A snapshot of live projects capturing plans of industrial corridors and theimpact that this plan is expected to have on the country’s economy
A look at various opportunities across the value chain including PPP,Contractors/Consultants, O&M Operators, Equipment Suppliers, RollingStock Suppliers and Financing
MakeinIndia.com ties in with PM Modi’s Promise
Make in India
What Modi Promised What’s up on the WebsiteDevelopment and Growth Oriented Environment
“Investment doesn’t stem from incentive alone. In the light ofIndia’sWorld Bank rank in ease of doing business, it is important tobe sensitised to this and check if we are not creating obstacles inthe name of regulations.”
Dedicated section on policies - new initiatives, intellectual property factsand national manufacturing policy
Consolidation of available financial incentives - tax, state, area-based Showcase of India’s strengths and how the regulatory environment is
being simplified across sectors
Integrated Approach across Stakeholders
“A state, if asked for the implementation of export promotionactivities, shouldn’t need to look towards the centre. Humandevelopment must be in sync with the need for sustainable growth.It is imperative to have a team of bureaucrats with progressive andpositive thinking.”
List and link to key facilitating agencies in each sector – ministries,industry bodies and councils
Digital India
“Mobile, easy governance is key to ensure that all citizens shouldhave information available on their fingertips.”
Integrated access to various social media platforms of “Make in India”,including Facebook, Twitter, Google Plus and You Tube
MakeinIndia.com ties in with PM Modi’s Promise
© Edelman India, 2014
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