1. R.Kannan Hinduja Group BIMTECH LMC series 27th November 2015
Make in India
R.Kannan
Hinduja Group
BIMTECH LMC series
27th November 2015

2. Introduction Initiative by government – Sep 2014
Objective is to increase contribution of mfg to GDP from 15% to 25%.
Identified 25 sectors for growth.
DIPP has a specific focus on this initiative.
Global Publicity for this programme.
Good encouragement for Private sector and Foreign companies to participate.
Widely accepted concept across the world.
Will create employment opportunities.

3. Mega Trends Growth slow down in Developed Economies.
In BRICS, except India and China all others not doing well.
Decrease in trade growth.
Unconventional Monetary policies.
Falling commodity prices.

4. Global Forecast

5. Global Trade Forecast
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
World trade
6.8
3.1
3.4
2.2
3.7
4.3
4.4
3.9
 OECD
6.0
2.0
2.4
3.8
4.1
4.2
3.3
 Non-OECD
8.3
4.9
5.0
-0.4
4.6
4.7

8. Advantages High Economic Growth Increased investor interest
Investor friendly approach by Central and State Governments.
Liberalistation of FDI.
Low Labour cost
Large investments from Japan.

9. Limitations Infrastructure / Logistics Ease of doing business Rank
Large number of procedures.
License required at multiple levels of government.
Lack of Global Scale.
High cost of resources / Availability of Finance.
Trans Pacific Partnership and other related initiatives / ASEAN manufacturing initiatives.
China’s counter Initiatives .

10. Logistics Performance Index
Country
LPIRank
Customs
Infrastructure
International shipments
Logistics competence
Tracking & tracing
Timeliness
Malaysia 25
3.37
3.56
3.64
3.47
3.58
3.92
China 28
3.21
3.67
3.50
3.46
3.5
3.87
Thailand 35
3.40
3.30
3.29
3.45
3.96
Vietnam 48
2.81
3.11
3.22
3.09
3.19
3.49
Indonesia 53
2.87
2.92
3.53
India 54
2.72
2.88
3.20
3.03
3.51
Philippines 57
3.00
2.60
3.33
2.93
3.07

11. Logistics Efficiency Indicators
India
Global
 Road Transportation
 Average truck speed (in kmph)
30 – 40
60 – 80 (including China)
 Four lane road length (in kms)
7,000
34,000 (China)
 National highway length in kms)
66,590
1,900,000
 Average surface freight (in  cents/km)
~ 7
3.7 (Japan)
 Average distance travelled by a  truck per day (in kms)
200
400

12. Logistics Efficiency Indicators
Air Transportation
 Airport waiting time – Exports (in  hours) 50 12
 Airport waiting time – Imports (in  hours)
182 24
 Aviation turbine fuel as a % of  operating cost
35 – 40%
20 – 25%
 Ports & Sea Transportation
 Turnaround time at ports (in  hours) 84
7 (Hong Kong & Singapore)
 Annual container handling  capacity
8.4mn TEUs
60mm TEUs (China)
 Containers handled per ship, per  hour (maximum) 15
25 – 30
 Throughput density (maximum)
45,000 TEUs / hectare
170,000 – 220,000 TEUs / hectare
 Warehousing
 Average inventory days 33
24 (China)

13. Other Initiatives Industrial Corridors. Smart Cities.
Industrial clusters.
Digital India.
Skill Development.

14. Competitiveness Automobile Chemicals IT & ITES Jewellery and Diamonds
Leather
Pharma
Research and Development
Textiles

15. Way forward Further liberalisation of FDI. Attract Indian Diaspora.
Path breaking partnerships with other countries like the one we have with Japan.
Simplify the procedures.
Focus on Infra / Logistics Development.
Focus on Innovation / R&D.
Better Centre State Relations.
Better Government / Private sector Relations.

16. Thank you