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MDA Technologies 2/2015

MDA Technologies 2/2015

India rolls out the red

India rolls out the red carpet to investors and industries Sushen Doshi #Hannover Messe #India – Partner Country #Modi #‘Make in India’ #Larger Integrated Networks. Smells like one spicy recipe. Come taste it...in Hanover, Germany April 13-17. The Ministry of Finance, Government of India forecasts the GDP growth for the year 2015-16 to be between 8-8.5 %. This provides a great opportunity for the companies from Germany and other countries as well to enter and expand into the Indian markets. This year, having India as the partner country for the Hannover Messe provides the perfect chance for the exhibitors and the visitors to interact Author: Sushen Doshi, editor, MDA Technologies and tap the tremendous growth potential that India has to offer. Every year at the Hannover Messe there has been a decent representation of the Indian business community mainly from the SME’s. But this year after the arrival of the new progressive government led by Prime Minister Modi, the sentiment in the business community is very positive and growth hungry. The purpose of Modi’s visit to Germany is mainly to boost trade, technology and research co-operation with German government and the Industry. With India as the partner country and arrival of PM Modi at the Hannover Messe inauguration will hugely expand the number of Indian visitors. Make in India Apart from the high growth forecasts and enormous market potential, there are more factors why India is an attractive destination for German Businesses. One of the factors being the ‘Make in India’ campaign launched by Prime Minister Modi himself. From agriculture to automobiles, from satellites to sub- marines, from paper clips to power plants, whatever you want to make: Make in India. This is definitely a great initiative that is attracting the foreign companies to Invest in India. This increase in the size and volume of manufacturing sector is stimulating the need to modernize the machinery and the plant equipment. To meet up with the increased production demands, the larger and medium scale companies are focusing more and more on high end equipment and automation Along with manufacturing, the infrastructure and the housing sector are expected to grow rapidly as well. The government is undertaking and sanctioning a large number of infrastructure projects to cater to the infrastructure needs of the industry.Therefore the demand for machinery and construction equipment is also huge. Ease of doing business Another important factor which makes India a special place for businesses is the drastic improvements being made on ‘ease 10 MDA Technologies 2/2015

NEWS AND MARKETS of doing business’. Again under the flagship of PM Modi, the government and its bureaucracy are reducing the documentations and out dated processes that were a hindrance and a major cause of project delay and cost escalations. The Indo-German business summit at the Hannover Messe 2015, has significant focus on the Indo-German bilateral trade and transfer of the high end technology, which will be a major component of the future bilateral trade as well. Keeping in mind this aspect the ‘Embassy of India’ has commissioned a report that showcases the prospects of Indo-German collaborations in high technology manufacturing. This report to be launched by PM Modi and Chancellor Angela Merkel, recognizes the need to create awareness on both the sides that will allow for easier trade in dual use and sensitive technologies, and also the in-depth understanding of the each other’s requirements. Expectations from the Hannover Fair The expectations of the Indian Industry has changed a lot in the last few years. The businesses in India realize their role of being an active partner in meeting the global industrial supply of goods and services. Majority of the Indian delegation at the Hannover Messe are aiming to grow their businesses by partnering with new customers on product improvements and developments. At the same time, with the existing customers they want to grow the business by broadening the product base and supplying the superior value addition to their existing products. A significantly large number of Industries are looking keen to invest on research and innovation as well. This will enhance the value perception of its products on a global scale. Along with the European markets, they are targeting newer geographies to increase the global market share of their products. They want to further strengthen their exports and prove their abilities in all areas from high tech research to international marketing of their products. Like Germany, Indian industry has a very large number of family run businesses that are now determined and well prepared to adapt and adjust to the increased expectations and the needs of the international markets. A lot of Indian visitors arriving at the Hannover Messe, will also be interested in hunting out the products for the huge domestic market. India also expects to make significant developments in the field of manufacturing ‘high value added electronic components’. At Hannover Messe by collaborating with their German and global partners, India would definitely want to shift gears in order to bridge the significantly large demand-supply gap. The Indian industry is not only seeing the Hannover Messe as the opportunity to increase its global presence, developing and creating international networks. But more importantly, a lot of companies will be aggressively seeking technology collaborations, business tie-ups and research joint ventures over the medium term. Outlook With more than 250,000 visitors expected to arrive, Hannover Messe is the largest Industrial fair in the world. In 2006, India was the partner country at Hannover Messe. This generated the business to the tune of $ 1.3 billion and a number of major MOU’s and Joint Ventures were signed with large private and public sector companies. But with all the changes and reforms occurring in the Indian side, there is no doubt that the businesses generated are going to be larger and the collaborations formed are going to be stronger than ever before. In Hanover we will for surely see that the India is – ready to integrate the industry – ready to join the network. Photographs: ornaments fotolia www.makeinindia.com At the launch event of Make in India campaign in September 2014 pledging his support to the initiative, Mukesh Ambani, Chariman of Reliance Industries said: “This is a historic day for the Indian manufacturing industry. We commit ourselves to the Make In India. In order to succeed in this campaign, it was important to be open to capital and expertise from all over the globe.” Ambani, also announced that Reliance Industries would create 125,000 jobs in the next 12-15 months. Mukesh Ambani, Chairman and Managing Director, Reliance Industries Exuding confidence on India’s competitiveness, Kumar Manglam Birla said: “India has come to be known as global IT hub and reservoir of intellectual capital. It’s high time that India becomes a preferred center of choice for manufacturing for global companies.” Currently the share of manufacturing in India’s GDP is low at 16 % as compared to 36 % in China, and 22 % in Germany.“Quite clearly in manufacturing we have lot of catching up to do. We need manufacturing to put the economy into a higher growth trajectory and to create millions of jobs.” Kumar Mangalam Birla, Chairman of the $ 40 Billion Corporation, Aditya Birla Group “Ikea is well positioned, not just to ‘Make in India’ for India, but to ‘Make More in India’ for Ikea worldwide,” .The company’s sourcing plans “resonate with the Indian Prime Minister’s Make in India agenda. “We believe there is tremendous potential in India. We are looking for new suppliers who share our vision and values, are willing to grow with us and become world class suppliers.’’ Ikea, which has proposed to invest € 1.5 billion in India over a few years, has 45,000 direct employees and 400,000 in its extended supply chain. Sandeep Sanan, Head of Sourcing at Ikea South Asia MDA Technologies 2/2015 11

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