Reasons to invest

1.One of the world’s fastest-growing economies

• For the first time, India has crossed the $70 Bn mark in FY 2019-20 and recorded total FDI inflow of  $73.45 Bn.
• Hon’ble PM Shri Narendra Modi announced a special economic and comprehensive package of more than $270 Bn – equivalent to 10% of India’s GDP, under the Atmanirbhar Bharat Abhiyan (Self-reliant India). 

Source: Prime Minister’s Office, Ministry of Finance

• India to remain one of the fastest-growing economies in the world. IMF projects a growth of 8.8% for India in 2021

2.Largest youth population in the world

The population of India is expected to rise from 121.1 cr to 152.2 cr during 2011-36 an increase of 25.7% in twenty five years.With the largest ever adolescent and youth population. It will continue to have one of the youngest populations in the world till 2030.

3.Indian infrastructure story

• Hon’ble Finance Minister Smt Nirmala Sitharaman announced the National Infrastructure Pipeline first-of-its-kind initiative to provide world-class infrastructure across the country.
• The NIP will attract investments into infrastructure and will be crucial for attaining the target of becoming a $5 Tn economy by FY 2025.
• Nearly 7,000 projects across different sectors costing above INR 100 Crore per project and totaling INR 111 Lakh Crore have been identified
• Sectors such as Energy (24%), Roads (18%), Urban (17%) and Railways (12%) amount to around 71% of the projected infrastructure investments in India. 

Source: Department of Economic Affairs, Ministry of Finance and India Investment Grid

• By 2030, it is estimated that around 42% of India’s population would be urbanised from 31% in 2011.

4.Rising global competitiveness

• India jumps 79 positions from 142nd (2014) to 63rd (2019) in ‘World Bank’s Ease of Doing Business Ranking 2020’. Source: World Bank
• India ranks 68th on the Global Competitiveness Index 2018-19. 

Source: World Economic Forum

• 95% of 1.2 billion Indians are covered under Aadhar Scheme, one of the world’s largest social security program. 

Source: Press Information Bureau, Government of India

• Pradhan Mantri Jan Dhan Yojana, a formalization of savings scheme under which 312 mn bank accounts have been opened with savings amounting to $11.6 bn. 

Source: Ministry of Finance, Government of India

• Goods and Services Tax (GST), the biggest tax reforms since independence, paves way for a common national market by integrating various indirect taxes.

5.Global Innovation Index 2020

• India jumps 4 positions and ranks 48th in the Global Innovation Index 2020 rankings

Source: World Intellectual Property Organization

• India ranks #1 in the Central & Southern Asia Region

Source: World Intellectual Property Organization

• India ranks 3rd amongst the Lower Middle-Income Economy Group 

6.Rising economic influence

• Centre of global maritime trade to move from the Pacific to the Indian Ocean Region. India and China will be the largest manufacturing hubs of the world by 2030. 

Source: Lloyd’s Register Marine & University of Strathclyde, Glasgow

• Connectivity to Central Asia and Europe via the International North-South Transport Corridor (INSTC). 

Source: Press Information Bureau, Government of India

• In the next five years, India to have greater economic influence across the Asia-Pacific Region. 

Source: Baker McKenzie & Mergermarket Group

7.Schemes for MSMEs

Under the Chairmanship of Hon’ble Prime Minister Shri Narendra Modi, the Ministry of Micro, Small and Medium Enterprises (MSME) implements various programmes/ MSME schemes for the development and promotion of MSMEs across the country.

More information:

https://www.investindia.gov.in/schemes-msmes-india

Sectors in India

1.Agriculture & Forestry

The agricultural exports as a percentage of India’s agricultural GDP has increased from 9.4 % in 2017-18 to 9.9 % in 2018-19.

• India has the 10th largest arable land resource in the world.
• India is the largest producer of spices, pulses, milk, tea, cashew and jute
• India is the 2nd largest producer of Bamboo in the World
• India is the second-largest producers of fruits and vegetables

Investment Opportunities in Agriculture & Forestry 

https://indiainvestmentgrid.gov.in/sectors/food-processing-and-agriculture

2.Auto Components

The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the localization of their components in the country.

• The rapidly growing auto market in India is expected to reach $ 300 bn by 2026
• Automotive aftermarket segment in India is expected to reach $ 32 bn by 2026
• Auto Components industry exports to grow 5X in next 10 years

Investment Opportunities in Auto Components

https://indiainvestmentgrid.gov.in/sectors/automotive

3.Automobile 

• India is the world’s 4th largest vehicle market
• World’s largest tractor manufacturer and second largest bus manufacturer
• World’s largest two-wheeler and three-wheeler manufacturer
• World’s third largest heavy truck manufacturer and fourth largest car manufacturer

Investment Opportunities in Automobile 

https://indiainvestmentgrid.gov.in/index.jsp

4.Aviation

• India is the 5th largest market in terms of aircraft passengers (domestic and international)
• Ninth largest Civil Aviation market in the world
• Fastest growing domestic air market in the world
• 52 DGCA approved AME Training Institutes

5.BFSI – Fintech & Financial Services

• India has the highest FinTech adoption rate globally of 87% which is significantly higher than the global average rate of 64%
• 2nd highest funded sector (after E-commerce)
• 3rd largest FinTech ecosystem globally

6.Biotechnology

• India is the 3rd largest biotech destination in the Asia Pacific Region
• World’s largest producer of recombinant Hepatitis B vaccine
• World’s largest producer of BT Cotton
• World’s highest number of USFDA approved plants

Investment Opportunities in Biotechnology

https://indiainvestmentgrid.gov.in/sectors/pharma-biotech-and-lifesciences

7.Capital Goods

• Capital goods contribute 12% to the overall manufacturing in India
• Direct and indirect employment expected to reach 5 mn and 25 mn, respectively by 2025
• Indian generation and T&D equipment market to reach $ 100 bn by 2022
• Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery

8.Chemicals

• India ranks 6th in the world in Chemicals sales and contributes 3% to global chemical industry
• Third largest consumer of polymers in the world
• Fourth largest producer of agrochemicals in the world
• Sixth largest producer of chemicals in the world

9.Construction

• 100 smart cities by 2020
• Second largest employer in India in 2017
• Second largest FDI recipient sector for India in 2017
• Third largest construction market globally by 2025
• 9% Share in India’s GDP
• 9829 km Highway construction in India (2017-18)
• $16.6 bn New investment in road infrastructure
• 51 mn People employed

Investment Opportunities in Construction

https://indiainvestmentgrid.gov.in/sectors/real-estate

10.Defence Manufacturing

• India has the 5th largest defence budget in the world
• 2.3% GDP spent on defence
• 15% Share in global arms import
• $64.4 bn Union budget 2020-21
• $780 mn Exports (Mar- Dec 2020)

Investment Opportunities in Defence Manufacturing

https://indiainvestmentgrid.gov.in/sectors/defence

11.Electronic Systems

• India is one of the largest consumer electronics markets in Asia Pacific Region
• $120 bn Indian Electronics Market
• 2.5% Contribution to GDP
• $8.8 bn Exports in 2018-19
• 13 mn Direct and indirect employment

12.Food Processing 

• World’s largest milk producing nation
• 32%Share in India’s food market
• 11.6%Share in total employment
• 10.7%Share in India’s exports
• 142%Cropping intensity

Investment Opportunities in Food Processing

https://indiainvestmentgrid.gov.in/sectors/food-processing-and-agriculture

13.Healthcare

• Healthcare industry in India is projected to reach $372 bn by 2022
• 370% Increase in health expenditure (2000-2014)
• 45.06% Increase in the total investments in healthtech startups.
• 40% Share in hospital beds (Pvt.)
• 22.9% Industry CAGR (2015-20)

14.IT & BPM

• India is the world’s largest BPM destination
• 8% Share in India’s GDP
• >55% Share in global outsourcing market
• 19% E-commerce growth
• >45% Share in Indian services export

15.Leather

• India is the world’s 2nd largest footwear producer
• $2.6 bn Footwear exports
• $429 mn Leather garments exports
• 4.42 mn People employed
• $524 mn Finished leather exports

16.Media

• India has 5th largest media and entertainment market in the world
• 11.8% Entertainment industry CAGR (2016-21)
• 44.2% TV industry revenue share
• 38.1% Advertising revenue share
• 24% Print media revenue share

17.Medical Devices

• India is the 4th largest market for medical devices in Asia
• 74% Pvt. sector’s share in hospitals
• 15.8% Growth rate (2009-2016)
• 800 Number of pvt. players in India
• 4000+ Number of health-tech startups in India

18.Metals & Mining

• Second largest producer of steel globally
• 300 MT Domestic steel production capacity by 2030
• $14.2 bn FDI equity inflows into the Metallurgical and mining (April 2000- Sept 2020)
• $27.73 mn FDI equity inflows into coal production (April 2000- Sept 2020)
• 3.33 MMT Aluminium production growth forecast (by FY20)

19.Oil & Gas

• India is the 2nd largest refiner in Asia
• 3.44% Gas Consumption CAGR (2014-19)
• 5.19% Oil Consumption CAGR (2014-19)
• 10% Petrochemical Industry CAGR (by 2022)
• 7.5% Fuel RO CAGR (2002-19)

20.Pharmaceuticals

• India is the 3rd largest pharmaceuticals industry in the world by volume
• 20% Generics medicines exports share (global)
• $19.3 Bn Pharma exports worth
• 70% Generic drugs revenue share
• 21% Patented drugs revenue share

21.Ports & Shipping

• Maritime transport in India handles 95% of the trade by volume
• 699.55 MT Cargo traffic at major ports (2018-19)
• 2.9% Cargo traffic growth
• 1431 Indian fleet strength (no. of vessels – coastal & overseas as on Apr 2020)
• 1451.2 MTPA Capacity (2018)

22.Railways

• India has the world’s largest rail network in terms of passenger traffic
• 12,163 mn Estimated Passengers in 2031
• 8,220 MT Estimated Freight Demand in 2031
• 2024 MT Freight Loading by 2024
• $11.8 bn Revenue from freight traffic (2020)

23.Renewable Energy

• India has the largest renewable energy expansion plan globally
• 1000 + GW Renewable energy potential in India
• 90 GW Installed renewable energy capacity (as of November 2020)
• 22% Share in total installed capacity
• 137% Increase in renewable installed capacity (FY 2013-14 to FY 2018-19)

24.Retail & E-commerce

• Indian retail market is projected to reach $1.75 tn by 2026
• 10% Contribution to India’s GDP
• 8% Share in India’s employment
• 4 X Rise in consumption
• 3 X Growth in organized retail

25.Roads & Highways

• India has the world’s 2nd largest road network
• 40 Km Avg. highway constructed per day
• 10800 Km National highway construction
• 15% Share of GDP on logistics & transportation
• 742 Projects awarded under PPP

26.Telecom

• India has the world’s 2nd largest mobile market
• 6.5% Contribution to India’s GDP
• 4 mn Total employment
• 620 mn+ Smartphone subscriptions
• 100 No. of smart cities

27.Textiles & Apparel

• 5th largest exporter of Textiles and Apparel
• 28% Expected sector CAGR (2019-2021)
• 2% share in India’s GDP
• 12% Textile exports share in overall exports
• 45 mn Direct employment generated

28.Thermal Power

• India has the 5th highest installed thermal power capacity globally
• 367.28 GW Installed capacity of power stations
• 159.54 GW Peak power requirement
• 9.08% Installed capacity CAGR (FY09–FY18)
• 67% Required hydropower capacity

29.Tourism & Hospitality

• India ranks 3rd in WTTC Travel & Tourism Power and Performance ranking
• 1.2% Share in World Tourist Arrivals
• 2.05% Share in World Tourism Receipts
• 23.6% Growth in Foreign Tourist Arrival on e-Tourist Visa
• $29.9 Bn Foreign Exchange Earnings (FEEs)

Invest India

contact@investindia.org.in

 +91-11-23048155