Great Places for Manufacturing in India WORLD CLASS DESTINATIONS FOR MULTI-NATIONALS

Chapter 1: Advantage India

Exploring the economic opportunities in the land of the Great Banyan Tree:

Between 2004-05 and 2018-19, India experienced a 257 percent growth in GDP. India is likely to be a growth engine for global economic growth for the foreseeable future as the 6th largest consumer market worldwide and with 49 percent workforce involvement. The most appealing factors that make India a multi-national destination of choice are:

1. Large Developing Economy
2. Logistics & Maritime Potential
3. Large Consumption Base
4. Massive Investment in Physical and Digital Infrastructure
5. Historic Tax Reforms
6. Business-friendly Government and Ease of Doing Business
7. Abundant Natural Resources
8. Youngest Work Force
9. High Technology Adoption Rates
10. Focus on Sustainability and Environment Conservation

During the COVID-19 pandemic, proactive and progressive leadership successfully guided the nation, and the nation is prepared to emerge as the most viable location for business continuity plans.

Chapter 2: Pan-India Location Analysis

Top established and emerging destinations for manufacturing sectors:

More than half of the FDI received by India since the liberalisation era of the early 1990s accounted for the last five years, propelling India to the Top 3 greenfield FDI destinations. Interestingly, these investments have been made in a variety of industries , ranging from highly advanced areas such as R&D centres and engineering development centres, consumer internet, biotechnology and multinational pharmaceutical industries to resource-intensive industries such as food processing, chemicals and petrochemicals. India has also attracted large-scale investment in labor-intensive manufacturing processes in the industries of electronic assembly, textiles, and footwear. This section provides a glimpse into the most advanced ecosystems and preferred manufacturing locations in the sectors of Chemicals & Petrochemicals, Automobile & Automobile Components, Drugs & Pharmaceuticals, and Electronics & Consumer Appliances.

Chapter 3: Mumbai-Aurangabad

Maharashtra's New Industrial Belt:

India's financial, commercial and entertainment capital is Mumbai, the world's 12th wealthiest city, accounting for 5 percent of India's GDP and 70 percent of the country 's capital transactions. Jawaharlal Nehru Port is India's largest container port, popularly called JNPT, facilitating 40 percent of Indian container volumes. The Mumbai Aurangabad corridor is home to many durable IT, pharmaceuticals, textiles and consumer units. Aurangabad is also emerging as a manufacturing and engineering hub for automobiles.

Chapter 4: Pune

A Unique Culmination of IT and Manufacturing:

Accounting for nearly a fifth of India's industrial investment, the city and its industrial areas are well-established hubs for automobiles, consumer durables, IT and engineering. It is India's most advanced automotive ecosystem and has a notable concentration of German, American, Korean and Chinese businesses. This town is also one of India 's prime markets for the development of light industrial parks and warehouses. Other important sectors are pharmaceuticals and food processing. In Mercer's Quality of Living Index, 2018 for Indian cities, the town was ranked first.

Chapter 5: NH48, Gurugram-Bhiwadi-Neemrana Corridor

India’s Oldest Automobile Cluster:

NH48, which connects Delhi with Mumbai, is home to several industrial clusters, including Gurugram, Manesar, Bhiwadi, Bawal, Neemrana and Ghilot, particularly near NCR. It has emerged as the conceptual spine of the Delhi-Mumbai Industrial Corridor alongside the Western Dedicated Freight Corridor. The Gurugram-Manesar-Bawal belt is India's largest automotive ecosystem, accounting for half of the production of 4-wheelers. Gurugram, home to more than half of the Fortune 500 businesses, is an IT and start-up hub. In its successful Japanese Industrial Township, Neemrana hosts 55 + Japanese firms. Other notable sectors along the highway include FMCG, ESDM, and ceramic and glass.

Chapter 6: Noida - Greater Noida - Yamuna Expressway

India’s Electronics Manufacturing Corridor:

India's largest manufacturing zone for electronics accounts for 40 percent of India 's mobile production and more than half of the production of mobile components. It hosts India's largest cluster of Chinese factories, along with a notable presence in Korea and Japan. In this area, automotive OEMs and auxiliaries, IT and food processing also have a noteworthy presence. It is expected that Jewar International Airport, planned to be India's largest aerotropolis and Delhi 's second international airport, will be operational by 2023.

Chapter 7: Bengaluru

India’s Silicon Valley:

Bengaluru, the start-up, IT and R&D capital of the world, is home to 70% of India's chip designers, 60% of India 's production of machine tools, 400 + global R&D centres and 2/5ths of India's IT exports. It is also a hub for sectors such as aerospace, textiles, and biotechnology. The pioneering state of India's capital city for niche segment policies such as India's first Electric Vehicle and Energy Storage Policy, Startup Policy, AVGC (Animation, VFX and Gaming) Policy, among many others, is also home to some of India's largest public sector companies such as Hindustan Aeronautics Limited (HAL), National Aerospace Laboratories (NAL), Indian Space Research Organization.

Chapter 8: Chennai

Detroit of India and nearby Tirupati-Nellore Cluster:

The state with the largest number of factories in India is Tamil Nadu, and its capital, Chennai, is South India's largest industrial and commercial centre. The city is home to 3 of the 12 major ports in India , making it the closest point of call for major manufacturing ecosystems such as China, Korea , Taiwan, Japan & ASEAN in India. With a significant presence in engineering, textiles and clothing, leather products, software and IT-enabled services, 1/3rd of India 's automotive manufacturing sector is concentrated here. Chennai is known as the tri-city industrial growth corridor along with Tirupati (an emerging Electronics cluster) and Nellore-Chittoor (home to Sricity: India's largest industrial park in South India).

Chapter 9: Hyderabad

Fostering New Innovations in Manufacturing Sector:

Hyderabad has emerged as India 's second Silicon Valley, after Bengaluru, popularly known as Cyberabad. It boasts that technology giants such as Apple, Amazon , Facebook, Microsoft, Uber, Google and Qualcomm are home to the largest campuses (outside the US). In order to boost its status as an innovation and IT powerhouse, the State also has niche policies such as Drone Policy, Data Center Policy, IoT policy, IMAGE (Innovation in Multimedia, Animation, Gaming and Entertainment) policy, Innovation policy, among others. The city is also an established pharmaceutical and biotechnology hub, accounting for 1/3rd of the global production of vaccines and two-fifths of the domestic production of pharmaceuticals. Aerospace and defence, and ESDM are other notable sectors.

Chapter 10: Ahmedabad

India’s Emerging Automobile Hub:

India's first heritage city, Ahmedabad is an established industrial base for chemicals, textiles, pharmaceuticals and food processing. Led by Suzuki Motors and Honda, Mandal-Becharaji industrial belt, along with neighbouring Sanand, is expected to become India's largest automobile hub post completion of expansion plans. It is the largest city of the State with the longest coastline and highest number of ports. GIFT (Gujarat International Finance Tec-city), is India's only International Financial Services Center (IFSC) trying to compete with financial centres like Singapore, Hong Kong and Dubai.

Chapter 11: Vadodara, Bharuch-Ankleshwar Cluster

Country’s Power Engineering and Chemicals Cluster:

The region also has a vibrant production landscape spanning sectors such as chemicals , pharmaceuticals, engineering and automotive, accounting for more than one-third of India's power transmission & distribution equipment manufacturers. The Dahej Investment Region for Petroleum, Chemicals and Petrochemicals (PCPIR) is the most active and successful zone in India and is one of the best locations for industries in the red category. The largest petrochemical plant in India is the OPaL (ONGC Petro Additions Limited) unit at Dahej. The second largest Indian Oil Corporation refinery is also located here, which is expected to become India's largest refinery after expansion plans are completed by 2023.

Chapter 12: Incentives Snapshot

Structure and Types:

India follows a federal framework in which both central and state governments frame laws , policies and incentives in their areas of jurisdiction to regulate and support industries. The Centre and States' incentive schemes have objectives such as:

• Attract new / support expansion of manufacturing units,
• Attract new / support expansion of services companies and start-ups,
• Encourage exports from India,
• Drive higher value addition in India, etc.

Over the past 12 months, India has undertaken a number of historic tax reforms, such as reducing the corporate income tax for new manufacturing units to 17.16 percent, reducing the corporate income tax for existing companies to 25.17 percent and abolishing taxes such as the Dividend Distribution Tax (DDT) and the Minimum Alternate Tax (MAT). State governments have been at the forefront of the implementation of new reforms and the expansion of attractive business incentive packages. Capital Subsidies, Interest Subsidies, Stamp Duty Concessions, State GST refunds, employment subsidies, etc. are some of the commonly offered incentives.

Chapter 13: Grounding Investments in India

Key Stakeholders and Investor Checklist:

To welcome investors to its shores, India has been rolling out the red carpet. Personalized hand-holding and problem solving for investors, which is carried out by the government through existing or newly created administrative channels, has been at the heart of India 's investment promotion and facilitation programme.

The Department for Industry Promotion and Internal Trade ( DPIIT) under the Ministry of Commerce & Industry has managed important national missions at the centre, such as Make in India and Start-up India. Other line ministries shall formulate and enforce policies relating to their respective sectors or allocation areas. Invest India is the Government of India's national investment promotion and facilitation agency and is headquartered in New Delhi.

The Department of Industries & Commerce, Industrial Development Corporations and Investment Promotion Agencies play the most important role at the national level in the dissemination of information, in the formulation of investor-friendly policies and benefits packages, in the management of single window portals and in the establishment of investments. A detailed directory of all such important agencies is provided in the reports.