The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product (GDP). The Two Wheelers segment with 80 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 14 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In April-March 2017 exports of PV and Commercial Vehicles (CV) registered a growth of 16.20 per cent and 4.99 per cent respectively, over April-March 2016. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.
The Gross Value Added (GVA) from the manufacturing sector is estimated at US$ 326.3 billion in FY18. The sector’s contribution to the country’s GDP stood at 16.51 per cent in 2016. Quarterly GVA at basic prices from manufacturing sector grew by seven per cent in the second quarter of FY18. India has been ranked at 30th position on a global manufacturing index*, ahead of BRICS peers, Brazil, South Africa and Russia.
During April-December 2017, Index of Industrial Production for Mining, Manufacturing and Electricity grew 2.8 per cent, 3.8 per cent and 5.1 per cent, respectively.
The electronic goods industry is one of the fastest growing industries and is expected to be worth US$ 400 billion by 2020. Government is working on an export-oriented policy for Electronic products. The idea behind this policy is to promote greater exports of electronics and drive larger investments by setting up port-based electronic manufacturing clusters. Also, as of November 2017, Ministry of Electronics and Information Technology is going to come up with a new electronics manufacturing policy and is in process of setting up industry-specific groups.
The Government of India has been supportive towards this growth. It set up Electronic Hardware Technology Parks (EHTPs), Special Economic Zones (SEZs) and brought about a favourable climate for Foreign Direct Investment (FDI). The government has also increased liberalisation and relaxed tariffs to promote growth in the sector. In addition, it has given the nod to Modified Special Incentive Package Scheme (MSIPS) under which the central government will be offering up to US$ 1.7 billion in benefits to the electronics sector in next five years.
The growing customer base and the increased penetration in consumer durables segment have provided enough scope for the growth of the Indian electronics sector. Also, digitisation of cable could lead to increased broadband penetration in the country and open up new avenues for companies in the electronics industry.
Oil & Gas
The oil and gas sector is among the six core industries in India and plays a major role in influencing decision making for all the other important sections of the economy. In 1997–98, the New Exploration Licensing Policy (NELP) was envisaged to fill the ever-increasing gap between India’s gas demand and supply. India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment. The Government of India has adopted several policies to fulfil the increasing demand. The government has allowed 100 per cent Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products, and refineries, among others. Today, it attracts both domestic and foreign investment, as attested by the presence of Reliance Industries Ltd (RIL) and Cairn India.
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development. In 2016, India jumped 19 places in World Bank’s Logistics Performance Index (LPI) 2016, to rank 35th amongst 160 countries. Foreign Direct Investment (FDI) received in Construction Development sector (townships, housing, built up infrastructure and construction development projects) from April 2000 to December 2017 stood at US$ 24.67 billion, according to the Department of Industrial Policy and Promotion (DIPP). India has a requirement of investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. India is witnessing significant interest from international investors in the infrastructure space. Some key investments in the sector are listed below.
In February 2018, the Government of India signed a loan agreement worth US$ 345 million with the New Development Bank (NDB) for the Rajasthan Water Sector Restructuring Project for desert areas. In January 2018, the National Investment and Infrastructure Fund (NIIF) partnered with UAE-based DP World to create a platform that will mobilise investments worth US$ 3 billion into ports, terminals, transportation, and logistics businesses in India. India’s national highway network is expected to cover 50,000 kilometres by 2019, with around 20,000 km of works scheduled for completion in the next couple of years, according to the Ministry of Road Transport and Highways. The Government of India is devising a plan to provide Wi-Fi facility to 550,000 villages by March 2019 for an estimated cost of Rs 3,700 crore (US$ 577.88 million), as per the Department of Telecommunications, Government of India. India and Japan have joined hands for infrastructure development in India’s north-eastern states and are also setting up an India-Japan Coordination Forum for Development of North East to undertake strategic infrastructure projects in the northeast.
Below are some examples of completed assignments:
- Head Product Engg & Mgmt – large Real Estate Services company, India
- EVP Finance for an Infrastructure company, India
- CFO for a Chemical company, India
- AVP / GM Litigation for a Indian Infrastructure company, India
- CFO for a Trading and Marketing Services company, Chennai
- CFO for an Industrial and Specialty Gases Manufacturing company, Dubai
- Sr. GM – Legal for a Real Estate company, Mumbai
- Head of Finance for a Specialty Chemical company, Pune
- CFO for a Chemical company, Pune
- Chief Manager Legal and Secretarial for a Trading and Marketing Services company, Chennai
- Regional HR Director for a Access Control Manufacturing MNC, Chennai
- Chief Manager HR for a Trading and Marketing Services company, Chennai
- GM – Purchase for an Automotive company, India
- Strategic Key Account Purchaser for a Global Chemical Company, Mumbai
- Head Direct Spend for a Chemical company, India
- Head India IT Grp for a Multinational Chemical Manufacturing company, India
- Group Head Information Tech for an Industrial Conglomerate company, Nigeria
- IT Lead Asia for a Minerals Processing Technology MNC, Mumbai
- VP & Building Operations for an EPC company, India
- GM – Projects for a Real Estate Development company, India
- Sr. VP Fertilizer Business for a Chemical company, India
- Operations Head for an Oil Manufacturing company, India
- Chief Operation officer for a Japanese Auto Major
- Quality Head for an Electrical company, Bangalore
- Sr. Director Operations for an Energy and Utility Solutions company, Delhi/NCR
- VP Operations for an Energy and Utility Solutions company, Delhi/NCR
- Senior Manager Global Project Procurement & Supply Chain for a leading provider of Motion Subsystems, Hong Kong
- COO for a Trading and Marketing Services company, Chennai
- National Sales Manager for a Manufacturing & Investment company, Nigeria
- Country Head for an Energy and Infrastructure company, Overseas
- Head Business Development for a Real Estate Development company, India
- Country Manager for a Trading and Marketing Services company, Chennai
- VP Sales Marketing & Planning for a Real Estate Development company, India
- Joint GM for a Trading and Marketing Services company, Chennai
- National Sales Manager for a Manufacturing & Investment company, Lagos
- DGM for a Manufacturing & Investment company, Lagos
- Sr. Director Business Development for a Solar module manufacturing company, New Delhi
- Country Manager for a Trading and Marketing Services company, Myanmar
- Profit Centre Head for a Trading and Marketing Services company, Chennai
- CTO for a Logistics and Supply Chain company, Chennai
- Manager Legal for an Aviation Company, Delhi
- AGM – Legal for a Renewable Energy Company, Pune
- Legal Consultant for a large Photovoltaics’ Company, Delhi/NCR
- AGM Legal for a Real Estate Company, Chennai