Foreign SMEs Betting Big On Make In India | SupportBiz

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Foreign SMEs Betting Big On Make In India

 
Recently the German SME's have committed an investment of over Rs 3,000 Crore for 'Make In India' under the Make in India
India is on the threshold of major reforms and is poised to become the third-largest economy in the world by 2030, owing to its skilled labor, robust legal and IPR regime, and a strong commitment to calibrated liberalization — India is a destination that German investors cannot overlook.

Recently the German SME's (Mittelstand) have committed an investment of over Rs 3,000 Crore for 'Make In India' under the Make in India Mittelstand (MIIM) initiative, said India's Ambassador to Germany Gurjit Singh during a business event held at the Indian Embassy here.

The investment is for setting up of 15 new manufacturing plants, 6 expansion projects and 2 pilot projects covering the states of Maharashtra, Gujarat, Karnataka and Tamil Nadu.

Gurjit also said that the ‘Make in India’ program will also help in strengthening the Indo-German economic partnership. Mario Ohoven, President of the German Association for Small and Medium-sized Businesses, at the event promised support of his association towards the MIIM program.

India's manufacturing sector has evolved through several phases - from the initial industrialization and the license raj to liberalization and the current phase of global competitiveness. Today, Indian manufacturing companies in several sectors are targeting global markets and are becoming formidable global competitors. Many are already among the most competitive in their sectors. As Prime Minister Narendra Modi, said, India offers the 3 'Ds' for business to thrive— democracy, demography and demand.

Not only Germany, several other international players have shown interest in investing in Make in India program. Some of them are follows.

China

Around 100 top Chinese handset and component manufacturers gathered recently which could bring $2-$3 billion investment in Indian mobile manufacturing operations in the next two years. Top officials from Chinese companies such as Techno, Gionee, Coolpad, Holitech, Wingtech, Camera King, Galaxy Core, Poxiao, Vivo and Sprocomm participated in the first-ever summit titled "China-India Mobile Phone & Component Manufacturing Summit."

Pankaj Mohindroo, national president, Indian Cellular Association (ICA) said, “Going by the encouraging response of Chinese companies and definitive joint collaboration talks between the Indian and Chinese mobile and handset manufacturers, Chinese investment of $2-$3 billion (roughly Rs. 13,360 crores - Rs. 20,040 crores) over the next two years looks like a real possibility along with employment for one-two lakh people.”

 

Japan

Japan’s ShinaMaywa Industries offers to set up the plant in India for US-2 amphibious aircraft and invest in Make in India. ShinMaywa wants to set up a plant in India to cater to the global market since the demand for the aircraft is high.

Apart from that while addressing the India-Japan Business Leaders Forum in New Delhi earlier this month, the Prime Minister said, “there is a Make in India movement in Japan. I have been told that $11-12 billion in funds have been earmarked for it. This clearly indicates how both countries can move forward.” Modi added that Japan had committed an investment of $35 billion. Japan’s Prime Minister Shinzo Abe too has stated that Japanese companies would get ¥1.5 trillion to support their participation in the Make in India initiative.

Shinzo Abe, to bring in the Shikansen high-speed “Bullet” trains to India with transfer of technology and a Make in India component.

Japanese car maker Suzuki will import 20,000-30,000 cars manufactured by its Indian arm, Maruti Suzuki, under the Make in India initiative. The SMEs in India will definitely experience the trickle-down effect of such huge investment.

 

France

As per the sources France will not only help in the development of the smart city projects of Chandigarh, Nagpur and Pondicherry but also nine French companies have signed MoU with Engineering Projects India Ltd recently. France’s Minister for Finance and Public Accounts Michel Sapin said French companies have been investing billions in India and he expects that they will invest over $10 billion in the next five years.

Sapin said France is the third-biggest foreign investor in India and there are more than 400 French companies present in India with a consolidated turnover of over $20 billion.

The majority of these investments are meant for the industrial sector. This makes France a major player in Prime Minister Narendra Modi's Make in India program. This complementarity can also be seen in the context of other program of the Indian government," Sapin said. The majority of these investments are meant for the industrial sector. This makes France a major player in Prime Minister Narendra Modi's Make in India program.

Russia

Recently Russia Signed 16 MOUs with India to boost 'Make in India' in the defence sector. Anil Ambani controlled Reliance Defence signs $6 billion deal with with Russia's Almaz-Antey, maker of an air defense system that the Indian military was poised to buy.

India and Russia agreed to put the government’s flagship “Make in India” program at the center stage of the strategic relationship, as New Delhi and Moscow decided to build nuclear reactor components and military helicopters in India.

United States

As India is one of the largest and most diversified markets in the world and steps are under way to increase bilateral trade five-fold from $100 billion to $500 billion, said Ariel H. Pollock public affairs officer, US Consulate. While Modi was on his US visit, he met several American business leaders and invited them to join his ambitious Make in India program in a bid to make India a manufacturing hub.