PMs Make In India Project and

its impact on FDI in India

Rency Raj J ERBE11026

Gowtham ERBH16006
 AGENDA
What is FDI?
Evolution of FDI in India
Types
Forms of Business Presence in India
Make in India
Impacts and Achievements

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 What is FDI?
FDI is a key component in global economic integration.
Foreign direct investment (FDI) is an investment made by a company
or individual in one country in business interests in another country, in
the form of either establishing business operations or acquiring
business assets in the other country, such as ownership or controlling
interest in a foreign company.
FDI is an important vehicle of technology transfer from developed
countries to developing countries.
FDI is an important source of non-debt financial resources for country
for economic development .
It is a means of achieving technical knowhow and employment
generation.

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Evolution of FDI in India

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Progressive Liberalisation

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Types

Investment
GreenfieldStrategy
Investment Investors
Individual:
Strategy FVCI (Foreign Venture Capital
Investors)
Brownfield investment Pension/Provident Fund
Strategy Financial Institutions
Company:
Foreign Trust
Sovereign Wealth Funds
NRIs (Non Resident Indians)/ PIOs
(Persons of Indian Origin)
FDI Foreign Institutional Investors:
Horizontal FDI Private Equity Funds
Partnership / Proprietorship Firm
Vertical FDI
Others

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Forms of Business Presence in India

Luthra & Luthra Law Offices 7

The Entry Process
Investing in India
Automatic Route
No Central Government
Permission is required.
Government Route
Applications are considered by the
Foreign Investment Promotion Board (FIPB).
Approval from Cabinet Committee on
Security is required for more than 49% FDI
in defence.
The proposals involving investments of more
than USD 769.23 million are considered by
Cabinet committee on economic affairs.
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 STEPS INVOLVED IN INVESTMENT
Identification of structure
Central Government approval if
required
Setting up or incorporating the
structure
Inflow of funds via eligible
instruments and following pricing
guidelines
Meeting reporting requirements of
RBI and respective Act
Registrations/obtaining key
documents like PAN etc.
Project approval at State/UT level
Finding ideal space for business activity
based on various parameters like
incentives, cost, availability of man power
etc.
Manufacturing projects are required to file
Industrial Entrepreneurs Memorandum
(IEM), some of the industries may also
require industrial license.
Construction/renovation of unit.
Hiring of manpower.
Obtaining licenses if any.
Other state & central level registrations.
Meeting annual requirements of a
structure, paying taxes etc.
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MAKE IN INDIA

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 MAKE IN INDIA
Make in India was launched on September 25, 2014, by Prime Minister Narendra Modi
to encourage multinational as well as domestic companies to manufacture their products
in India.
Vision: The initiative hopes to attract both capital and technological investment in India
and that the country will become the top destination globally for foreign direct
investment (FDI), surpassing even China and the United States.
Logo inspired by the Ashoka Chakra is a striding lion made of cogs, symbolising
manufacturing, strength and national pride.
Objective: To focus on job creation and skill enhancement in 25 key sectors of the
economy, including automobiles, aviation, biotechnology, defence manufacturing,
electrical machinery, food processing, oil & gas, and pharmaceuticals, among others.
Key policies -- ease of doing business, getting away with archaic laws, 100 Smart Cities,
disinvestment of public sector undertakings, skills and jobs for the youth, making India a
manufacturer
Major challenges include creating a healthy business environment, removal of
unfavourable factors, more focus on Indians micro, small and medium enterprises
(MSME), lack of world class research and development (R&D), and comparisons with
China's Made in China campaign

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MAKE IN INDIA PROJECTS AND
POLICY CHANGES
KEY IMPACTS - GROWTH IN FDI

As per the FDI Markets, a Top 5 destinations

Financial Times, London H1 2015
data service -India has Country Capex ($bn)*

surpassed China and the India 31

China 28
US to take the pole
US 27
position in attracting
UK 16
largest FDI in the first half Mexico 14
of 2015 Source: fDi Markets.

India is in pole position to pass both China and the

US in the FDI league tables this year

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FDI into Asia Pacific in 2015

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India Overtakes China

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 MAKE IN INDIA - ACHIEVEMENTS
The Increase In Year-on-year Growth In Foreign Direct Investment
48% Inflows Recorded For The Period October 2014 To April 2015
PIB, India, 2015

1 India's Position in the Rating of The World's Fastest Growing

Economies IMF report, April 2015

India's Rank Amongst The World's Topmost Investment

1 Destinations, From 110 Countries polled Baseline profitability
Index, 2015

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India's Position Amongst 100 Countries On The Growth, Innovation
And Leadership Index Frost & Sullivan, 2015

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India's Position Amongst Worlds Best Prospective Investment
Destinations UNCTAD report, 2015

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The Number Of Government Services That Can Be Availed Of By An
Investor At A Single Window Online Portal

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Thank You

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