INDIA NEWS
June 1-15, 2022 - Vol 2, Issue 22
MAKE IN INDIA
Make in India: Investment opportunities As world economies restart their engines in a bid to regain lost ground due to the Covid-19 pandemic, India too shows signs of economic buoyancy and promise. India’s Make in India initiative holds a key to the global economic revival, something that should interest Australian government ministries, corporate sector, entrepreneurs, institutions seeking R&D collaborations and Australia Inc in general, among others. India assumes greater importance as several major world economies including American, Japanese, German, British and South Korean look to move out and diversify their businesses from China. India has jumped to 63rd rank in the World Bank’s Ease of Development 2020 report, and has also been ranked as the 9th largest recipient of Foreign Direct Investment destination in 2019 by the World Investment Report 2020 of the United Nations Conference on Trade and Development (UNCTAD).
Modi meets industry leaders in Japan, invites them to invest in India formula for success
New Delhi, May 23 (IANS) Visiting Prime Minister Narendra Modi, who arrived in Tokyo on Monday on a two-day visit, met three important business leaders of Japan and invited them to invest in India. Shortly after his arrival, Modi first met Nobuhiro Endo, the Chairman of NEC Corporation. The Prime Minister lauded the NEC's role in India's telecommunication sector, especially in undertaking Chennai-Andaman & Nicobar Islands (CANI) and KochiLakshadweep Islands (KLI) OFC projects. He also highlighted India's investment opportunities under the Production Linked Incentive (PLI) scheme. During the meeting, they discussed various reforms being undertaken to enable ease of doing business in India including in industrial development, taxation and labour. They also discussed opportunities in India in new and emerging technologies. According to the Prime Minister's Office (PMO), Endo spoke about opportunities in India in areas such as smart cities, emerging technologies and an innovative effort to encourage learning of Japanese in India. Modi also met Osamu Suzuki, senior advisor of the Suzuki Motor Corporation, and discussed further investment opportunities in India including setting up of production facilities for electric vehicles and batteries as well recycling centres, for realizing the goal of sustainable growth. They also discussed strategies for building the local innovation system in India, including skill development through JapanIndia Institutes of Manufacturing ( JIM) and Japanese Endowed Courses ( JEC). Recalling Suzuki's association and contribution in India, Modi appreciated the transformational role of Suzuki Motors in the automotive industry
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of India. He also appreciated that Suzuki Motor Gujarat Pvt Ltd. and Maruti Suzuki India Ltd were among the applicants approved under Production Linked Incentives (PLI) scheme in automobile and auto component sector. According to the officials in PMO, after meeting Modi, Suzuki said: "Reforms undertaken by PM Modi are indescribable and these reforms are changing India into a 'Model Landscape' while the self reliance (Aatmanirbhar) theme is supported by the Japanese's investors very strongly." Modi also held two other meetings with Tadashi Yanai, Chairman, President and CEO of Uniqlo, a Japanese casual wear designer, manufacturer and retailer; and Founder of SoftBank Group Masayoshi Son. During their meeting, Yanai appreciated the entrepreneurial zeal of the people of India and said: "We can focus on end to end products i.e. from plant to design to fabric. We want to make growth in India. IT talent in India is excellent... I just want to say, 'Let's Do it'." On his part, Modi asked Yanai to take part in the PMMitra scheme aimed at further strengthening the textiles sector. said the PMO. Meanwhile, the Prime Minister and the Softbank Group founder discussed subjects like India's strides in the world of StartUps, opportunities in research, technology and ways to boost investment linkages. Modi arrived here on a twoday visit at the invitation of his Japanese counterpart Fumio Kishida. He is scheduled to participate in the third Quad Leaders' Summit in Tokyo on Tuesday along with US President Joe Biden, Australian Prime Minister Anthony Albanese and Kishida. Modi and Kishida will also hold a bilateral meeting.
The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India ranks 3rd worldwide for production by volume and 14th by value. The nation is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and is the leading vaccine manufacturer globally. India also has the highest number of US-FDA compliant Pharma plants outside of USA and is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities as well as a highly skilled resource pool. The pharmaceutical industry in India offers 60,000 generic brands across 60 therapeutic categories. Major segments include generic drugs, OTC Medicines, API/Bulk Drugs, Vaccines, Contract Research & Manufacturing, Biosimilars and Biologics. > Incentives worth INR 21,940 Crore ($3 Mn) are approved > Expected to reach $65 bn by 2024, and ~$120-130 bn by 2030 > Growth rate 10-12% > Cost of manufacturing ~ 33% lower than western markets 18.7% year on year export growth India is the 4th largest Asian medical devices market after Japan, China, and South Korea and among the top 20 global medical devices markets in the world. Indian pharma companies enabled by their price competitiveness and good quality, have made global mark, with 60 per cent of the world’s vaccines and 20% of generic medicines coming from India. 100% Foreign Direct Investment (FDI) in the Pharmaceutical sector is allowed under the automatic route for greenfield pharmaceuticals. 100% FDI in the pharmaceutical sector is allowed in brownfield pharmaceuticals; wherein 74% is allowed under the automatic route and thereafter through the government approval route.
Indian pharmaceuticals - a
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The Rise and Rise of Indian Pharmaceuticals Industry By Bhakti Jain and Srijata Deb, Strategic Investment Research Unit (SIRU)
Climate change is speeding up and escalating quicker than expected with pollution levels at record highs. Present and future generations’ health and well-being and their economic progress are in jeopardy. We urgently require adequate solutions to preserve a cleaner and greener environment. As one of the cleaner fuels with zero carbon, hydrogen has provided a ray of hope in the fight against climate change. With the right fuel cells, they can be employed in numerous energy applications. Green hydrogen is one of the cleaner fuels available for transportation and power generation. For regulators, investors, and consumers, reduction in cost in hydrogen production, storage, transmission, distribution, and utilisation has become a major global change. Today, hydrogen is seen as a carbon-free alternative for various uses including longhaul haulage, shipping, and the steel industry. Because hydrogen manufacturing is energyintensive, non-greenhouse gas-producing sources such as wind and solar must be used to generate power. Large-scale usage of green hydrogen energy, a 100 per cent clean fuel, will cut greenhouse gas emissions while lessening the burden on fossil fuels. Over the next decade, refineries are projected to switch to green hydrogen. Green ammonia will be cost-effective for fertiliser production by 2030. The path to a cleaner future must pass through higher investments in research and development, technology enhancements, and capacity building. In the fight against climate change, India has emerged as a significant leader. It is now making noticeable measures to mitigate global warming as the world’s third-largest emitter, and it remains committed to significantly decreasing its environmental impact in the future. The PHD Chamber of Commerce and Industry (PHDCCI) functions as a catalyst in disseminating awareness and technological advances about pollution prevention and management, including climate mitigation. It has also been working on advanced multi-stakeholder initiatives and industrial transformation to enhance sustainability,
robustness, and efficiency in many socio-economic sectors. In the context of green hydrogen, India is in a distinctive position to create hydrogen for its purposes and emerge as a worldwide export hub owing to its wide accessibility of inexpensive renewable energy. The National Hydrogen Energy Mission, announced in the union budget of India for 202122, demonstrates India’s ability to build capacity to become the world’s cheapest hydrogen producer by 2050. This will aid in the development of a set of equitable, positive, and valuable future solutions. There has been significant impetus given to the production and consumption of green hydrogen. This has extensively induced several Indian companies to invest in innovations in green hydrogen plans: > Reliance Industries announced it would commit $ 75 billion to green energy, including an undisclosed amount toward green hydrogen projects. > Hyderabad-based Greenko group and Belgium-based John Cockerill to build a two-gigawatt hydrogen electrolyser gigafactory in India, the largest outside China. > The state-owned Indian Oil Corporation teamed up with two private companies to launch a joint venture to develop green hydrogen. There are also plans to manufacture and sell electrolysers used to produce green hydrogen. > In November 2021, the world’s largest solar power developer Adani Group announced it would invest $ 70 billion by 2030 into renewable energy infrastructure, including green hydrogen. > Reliance Industries and Adani Group have both pledged to make the world’s cheapest green hydrogen at $ 1 per kilogram, or about a quarter of a gallon — that’s down from the current cost of $ 5-6. Green hydrogen needs innovation and technological advancements to replace fossil fuels. It will become commercially viable only when it becomes cheaper. For the country, it is essential to focus primarily on initiating small and medium scale pilot projects before pivoting to large scale production plants. Source: Invest India, Government of India
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