#1URAMENT TRUTH ARONE T MAIL NADU Welcome to Tamil Nadu THE CHAD OF THE INDIAN ARMIES WHO FELL AND ARELHOS - Investors' choice in India གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#2URAMENT TRUTH ARONE T MAIL NADU Agenda གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PAEAD-SE 22-24 January 2018 1. About India 2. About Tamil Nadu 3. Tamil Nadu: Competitive advantages 4. Sectoral Opportunities in Tamil Nadu 5. Government support to investors#3URAMENT TRUTH ARONE T MAIL NADU India - At a Glance གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARADISE 22-24 January 2010 W Most competitive economy in South Asia in 2017 Only country amongst BRICS & South Asian economies to feature as a Top reformer in World bank's Doing Business Initiative 3rd Largest startup investor base in the CH S world World's fastest growing economy Forex Reserves USD 412.82 billion (As on 25th May 2018) Economy Size (FY 2017-18) USD 2.78 trillion 3rd largest economy in the world by purchasing power parity (PPP) 6th largest economy in the world by nominal GDP Current account deficit 1.4% of GDP FY18 GDP growth 6.5% (2017-18) Source: Economic Survey 2017-18, DIPP, IMF, India Soars Higher - KPMG Report 2018, Reserve bank of India, World Bank, http://www.tradingeconomics.com/india/unemployment-rate#4URAMENT TRUTH ARONE T MAIL NADU India - Key economic indicators གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010 Various structural reforms initiated are expected to take India's GDP growth rate to 8% in coming years India's GDP potential (USD trillion) MAKE IN INDIA 3.5 8.00% 7.80% 7.90% 7.50% 7.40% 3.0 7.10% 6.50% 8.10% 8.10% 8.20% 9.00% 8.00% 3.1 2.9 7.00% อ Digital India Power To Empower 2.5 2.6 6.00% 2.4 2.3 2.0 5.00% 2.1 2.0 1.8 1.5 1.7 4.00% 1.6 3.00% Smart City 1.0 MISSION TRANSFORM-NATION 2.00% 0.5 1.00% 0.0 0.00% 2014-15 2015-16 2016-17 2017-18 2018-19(P) 2019-20(P) 2020-21(P) 2021-22(P) 2022-23(P) 2023-24(P) GDP at constant market prices Growth rate Ease of Doing Goods & Services Business Tax (GST) Bharatmala project Source: Economic Survey 2017-18, IMF World Economic Outlook (2018-19 to 2023-24) SAGARMALA PORT-LED PROSPERITY Skill India कौशल भारत कुशल भारत #startupindia#5URAMENT TRUTE ARONE T MAIL NAD India - A favored investment destination FDI inflows (USD billion) China Hong Kong, China Singapore 44 India 40 2016 2017 Source: World Investment Report 2018 by UNCTAD 134 136 117 104 2017 77 2016 62 གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 22-24 January 2018 10th preferred investment destination in the world in 2017; jumped one place than 2016 4th preferred investment destination in Asia in 2017#6RNMENT TRUT ARONE Ta MAIL NADU India's - Growth Enablers གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORS PASAD-S 22-24 January 2018 Growing Consumer Demand • Expected to account for 40% of Global Middle Class Consumption by 2050 Fastest growing retail Market • Retail sector expected to grow by 260% by 2020 Young Demographic Population . 25% of world's population under 25 years live in India 65% of India's population is < 35 years of age Expanding Skilled Workforce • Home to 25% of world's skilled workforce by 2025 High Competency • World's 2nd largest pool of scientists and engineers Source: HLS Global E#7URAMENT TRUTH ARONE T MAIL NADU Electronics industry is the largest and the fastest growing manufacturing industry in the world གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PREAD-S 22-24 January 2010 USD 59.62 billion India is the world's 6th largest economy in terms of GDP Estimated total production in electronics sector in 2017-18, exhibiting a growth of 22% over the previous year 174457 This 16ACIRM ULN2004 ECCLE Nearly 2000 new chips designed per year with 20,000+ engineers working in chip design and verification Home to companies filing maximum number of patents per year (Qualcomm - 1700)#8URAMENT TRUTE ARONE T TAMIL NADU India: 2nd largest television and smartphone market གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 STORE PEAD-SE 22-24 January 2010 Indian television market is expected to cross USD 9 billion by Over 250 million active unique smartphone users 132-RT SMART TV Source: Task Force Report on ESDM Sector, TRAI Annual Report, IBEF#9URAMENT TRUTH ARONE T MILNAD Indian IT/ITeS: overview World's largest sourcing destination with a share of 55% of USD 185-190 billion in 2017- 18 Accounted for 9.5% of GDP & emerged as single largest contributor to services exports Amongst leading employment generators with 3.97 million people being employed, 105,000 added in FY18 3rd largest startup hub in the world with 4,750 units. Source: NASSCOM, Ministry of Electronics and Information Technology, Govt. of India གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 STORE PARADISE 22-24 January 2010#10URAMENT TRUTH ARONE T MAIL NADU TAMIL NADU INVESTORS' CHOICE གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#11URAMENT TRUTH ARONE T AMILNADU Advantage Tamil Nadu $ 2nd largest State Economy in India – . In PPP terms, US $605.26 billion)– 32nd largest in PPP terms and bigger than Vietnam, Belgium, Sweden, Norway, Finland, Denmark, New Zealand GSDP growth rate at constant prices – 7.94% GSDP (FY 16-17); 8.03% expected growth, US$ 207.8 billion (CAGR) – FY 17-18 1st Industrial performance | Investment potential* | Number of Operational Special Economic Zones World's Fastest Growing Economy Ranks First in terms of Domestic and foreign Tourist arrivals (2016) Investor's Choice in India གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#12URAMENT TRUT ARONE TAMILN T NADU FDI Investment received during April 2000 to March 2018 གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PREAD-ST 22-24 January 2010 State April 2000 to April 2011 Tamil Nadu (Incl. Pondicherry) April 2000 to Mar 2018 USD 7,341 million USD 27,235 million During the period May 2011-Mar 2018, Tamil Nadu attracted more than 3 times FDI during last 6 years when compared to previous 11 years Tamil Nadu ranked 4th in terms of actual FDI inflows during 2017 In 2017 state received USD 3.48 billion – 7.7% of total FDI received in India - Source: DIPP, Ministry of Industries and Commerce, GOI, TN Industrial Policy Note 2018-19 Incremental FDI attracted during May 2011 to Mar 2017 USD 19,894 million € ¥ $ €#13URAMENT TRUTH ARONE T MAIL NADU Fortune 500 companies in Tamil Nadu At present, 57 Fortune 500 companies have base in Tamil Nadu USA Japan Ford, DELL, Flextronics, Sanmina-SCI, Delphi, Visteon, Caterpillar, Honeywell, Johnson & Johnson, Citigroup, Pepsi, Dow Chemical co., Coca-Cola, Accenture, Hewlett-Packard, Microsoft, IBM, Johnson Controls, Emerson, Terex corporation and Motorola, Boeing Nissan, Mitsubishi, Yamaha, Bridgestone, Hitachi, Komatsu, Panasonic, Toshiba, Mitsui, Marubeni, Fujitsu, Sumitomo, Mizuho, NEC Corporation, MUFG Germany France South Korea Finland BMW, Daimler, Bosch, Siemens, Bayer, BASF Renault, Michelin, Saint Gobain, Alstom, PSA Hyundai, Samsung, POSCO, Lotte Nokia Taiwan Foxconn China Huawei Switzerland ABB གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARADISE 22-24 January 2018#14URAMENT TRUTH ARONE T MAIL NADU Tamil Nadu has a six sigma advantage for competitiveness Fastest growing State economy Average Growth rate: about 11% Mature Industrial base: Leader in automobiles & parts, Electronic hardware, Textiles, IT, etc Excellent Port and airport Logistics I 3 major ports at Chennai, Kamarajar (Ennore) and VOC (Thoothukudi); ~5 mn TEU capacity in Chennai port cluster; Chennai and Kamarajar also serve as auto export hubs Well-developed Infrastructure: Power, roads, communication, etc Manufacturing Total Cost competitiveness Largest producer of skilled Manpower In India Annual Turn-out: More than 1.0 million Graduates (Engineering, Arts & Science), Diploma holders and ITI workers Abundant availability of skilled manpower at competitive wage costs Harmonious industrial Relations གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#15URAMENT TRUTH ARONE T TAMIL NADU Focus sectors Textiles & Apparels Pharmaceuticals & Biotech Automobile and Auto components Chemicals & Petrochemicals HO Agro & Food Processing Aerospace & Defence Renewable Energy Infrastructure Skill Development IT & ITeS Heavy Engineering Electronics & Hardware AD གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARADISE 22-24 January 2010#16URAMENT TRUTH ARONE T TAMIL NADU Automobile Industry in Chennai Product Installed capacity Production 2017-18 Exports Cars 1.64 Million 1.09 Million 3,13,388 Trucks 2,18,000 1,08,524 22,814 Two wheelers 4.82 Million 3.18 Million 0.7 Million Current production capacity of Chennai ➤Three cars produced every minute One truck produced every 2 minutes One Motorcycle produced every 6 seconds གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#17URAMENT TRUT ARONE 10 གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PREAD-ST 22-24 January 2010 MAIL NADU CHENNAI: INDIA'S LARGEST AUTOMOBILE CLUSTER Ford B M W Automobile & Auto Components NISSAN DAIMLER CAPARO RENAULT HYUNDAI TAFE ROYAL ENFIELD TVS SCHWING AMERICA INC. ASHOK LEYLAND BOSCH DELPHI D Mahindra YAMAHA Allison Transmission SAME MRF TYRES Tyres with Muscle mmmm SAINT-GOBAIN MICHELIN CATERPILLAR® CEAT HWASHIN TECH UNIPRES KOMATSU HITACHI Inspire the Next PSA PEUGEOT CITROËN APOLLO TYRES LTD ✓ TEREX JKETYRE TOTAL CONTROL#18URAMENT THUTH ARCIVE TAMILN NADO Tamil Nadu Offers excellent opportunity for investors to set up electronic manufacturing facilities Domestic electronic production vs Electronic imports by India (USD billion) 41 37.6 37.4 30 2014-15 2015-16 49.5 43 2016-17 ■Domestic production ■Imports • Domestic electronic production has increased compared to the imports in 2016-17 • India's electronic imports would outpace domestic production by 2020, leading to an import requirement of about USD 300 billion གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARADISE 22-24 January 2010#19URAMENT TRUT ARONE T TAMIL N NADU Electronics hardware Chennai is second largest electronic hardware manufacturing hub in India 2nd in India Tamil Nadu's rank in the computer, electronics and optical products manufacturing accounting for ~16% of national production Chennai is emerging as a Centre for manufacture of mobile handsets, Telecom equipment, Computers, Base Stations, Laptops, etc Big Market: Government of Tamil Nadu is procuring 1.6 Million laptops during current year 2018. Excellent potential to supply solar panels Presence of 20+ electronic hardware technology parks based in major IT centric SEZs of Sriperumbudur, Oragadam, & Mahindra World City Telecom instruments (38% of the total electronics exports), electronic instruments (33%) and electronic components (11%) were the top three exported commodities from Tamil Nadu (2017-18) 29.73% གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S State-wise share in electronics output 22-24 January 2018 15.92% 15.21% 9.41% 8.87% Uttar Pradesh Tamil Nadu Maharashtra Karnataka Uttarakhand Year-wise Tamil Nadu electronics output (USD billion) 3.66 3.43 3.12 2.40 2012-13 2013-14 2014-15 2015-16#20URAMENT OF TRUT ARONE NAD TAMIL N T Electronic hardware market གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARADISE 22-24 January 2018 USD 400 billion Estimated demand of Electronics System Design and Manufacturing (ESDM) sector in India by 2020 Ample forward integration opportunities in industries such as automotive, mobile phones, computer hardware, industrial and strategic electronics, etc. Highest automobile & auto components production in India Huge smartphone market; Highest tele density in India Huge consumer durables demand due to urban agglomeration 80.08% literacy rate; high number computer literate people India's first defence corridor in the state will boost the strategic electronics market#21URAMENT TAMIL NAD Printed Circuit Boards (PCBs) TAMIL NADU Estimated demand of PCBs in 2018-19 in India is worth USD 4.99 billion and is expected to cross USD 6 billion by 2019-20 Industry Estimated PCB demand by 2019-20 (USD million) PCBs in India - Domestic production vs Imports Domestic producti on, 30% Automotive Mobile Phones Strategic electronics 490 723 570 Industrial electronics 924 Telecom 471 Consumer electronics 1670 Computer Hardware 420 840 Total 6108 Imports, 70% LED Lighting Xiaomi announced its big move towards PCB local manufacturing by setting up its first SMT (Surface Mount Technology) facility in Tamil Nadu#22URAMENT TRUTH ARONE T MAIL NAD Tamil Nadu: The Electronic manufacturing Ecosystem Electronic Hardware ALCATEL Honeywell NOKIA Connecting People DELL® FOXCONN ERICSSON PERLOS FLEXTRONICS TAKING YOU FORWARD M MOTOROLA Panasonic Information Technology Laird TECHNOLOGIES SIEMENS Salcomp POWERING THE MOBILE WORLD ORACLE verizon i❘ Nautix. technologies inc ABN-AMRO Infosys HCL SUTHERLAND accenture High performance. Delivered HSBC The world's local bank hp IBM® ΤΑΤΑ SAMSUNG DELTA noserbaer WRITING THE FUTURE WIPRO Applying Thought Cognizant citibank Sify KANBAY DOW EDS གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#23URAMENT OF NADO TAMILN Tamil Nadu – IT sector Overview - Revenue 2017-18 ▶Total US$ 18.51 Bn IT Investments 2017-18 ►Total US$ 6.15 Bn IT exports from state grew at a average growth rate of 18.76% between 2012-13 and 2017-18 18 IT exports from Tamil Nadu (US$ billion) གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARADISE 22-24 January 2010 16.93 Sector growth ►Grows at 8.55% ►National average is only 7% 15.6 16 14.1 14 13.4 12 12 10 10 8 6 CO st IT SEZ land availability ►ELCOSEZ developed 2 ▶ IT/ITES promotion in major cities 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Guidance Bureau Slide 23#24URAMENT MAIL NAD Agro and Food Processing opportunities གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORS PASAD-SE 22-24 January 2010 THUTH ARCE Contributes ~3% to India's food grain produce, ~7% to India's vegetable produce and ~12% to India's fruit produce 2nd Largest Producer of Poultry & Dairy in India 3rd Largest Producer of Tea & Coffee in India 2nd Rank in registered Food 5th Largest Producer of Fruits in India processing unit factories • • Contributes 7% in India's food processing output One of the largest contributors to Fish production with 7.07 lakh MT (2016) • Leading Producer of Species and Cashew nuts#25URAMENT TAMILN NADU Textiles & Apparels - Overview TRUTH ARONE T Tamil Nadu is known as the 'Yarn Bowl' of India produces ~40 % of total Yarn in India 1st Rank in Production of Cotton Yarns Tirupur is the biggest Knitting cluster in India known as the 'Knitting City' 1st Rank in Export of Cotton Yarns Coimbatore is called the 'Manchester of South India' 2nd Production of Blended Yarn Tamil Nadu contributes 1/3rd of the textile business of India Tamil Nadu has more than 50% of India's textile mills The State is also a leading producer of Technical textiles with units pre-dominantly situated in Chennai & Coimbatore Tamil Nadu - the largest hub of textiles & garment in India with 20% of India's Export RMG State Employs about 35% of the workforce in textiles sector constituting about 28% of total employment in India's Textile & Garment sector Textiles* exports from Tamil Nadu (USD 6.91 billion 6.65 billion₤.65 6.69 5.65 6.7 2012-13 2013-14 2014-15 2015-16 2016-17 གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 STORE PEAD-SE 22-24 January 2010#26URAMENT TAMILN NADU Renewable Energy TRUTH ARONE T Leader in Renewable energy sector with a total installed capacity of 11,113 MW as on Mar 2018 Tamil Nadu is among the top markets globally to have large share of renewable power generation Break-up of renewable energy sources (MW) Generation,. Biomass 688.4 Combustion,. TAMILNADU,... 14% CALIFORNIA,... 15% TEXAS, US 18% Tamil Nadu gets 14% of its energy needs from renewables SPAIN 23% IRELAND 25% GERMANY 26% URUGUAY 32% SOUTH... DENMARK 48% 53% 237.67 Solar, 2034. 25 གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORS PASAD-SE 22-24 January 2010 Wind, 8152. 39 Tamil Nadu has harnessed around 2,905 million units of Solar energy Tamil Nadu is promoting Solar Power farms with 3000 MW capacity. Excellent Market Potential to manufacture and supply Solar panels: 51.0 Million Sq.metres demand in 2018-19#27URAMENT TRUTH ARONE T NAD TAMILN What does the State Government offer? . • Land in different Industrial parks and SEZ - Structured Incentives package of support Infrastructure: Quality Power and Water supply Single Window Facilitation & approval on a fast-track mode within 30 days. གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#28URAMENT TRUTE ARONE 10 T MAIL NAD Single Window Facilitation for fast track approvals within 30 days གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 22-24 January 2010 Single window online portal www.easybusiness.tn.gov.in Receiving electronic payment of fees from enterprises Submission of documents for obtaining business approvals Tracking & Monitoring the 0 status of applications submitted for processing PASS Recording & addressing investor grievances All applications are processed as per Business facilitation act Clarifications raised by authorities to enterprises and receiving their responses Allowing enterprises to download final clearances from the system#29URAMENT TRUTH ARONE T MAIL NADU Global Investors Meet GIM-2019 23rd - 24th January 2019 Chennai Trade Centre གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010#30URAMENT TRUTH ARONE T MAIL NADU Thank You གས་དང་ TAMIL NADU GLOBAL INVESTORS MEET 2019 INVESTORE PARAD-S 22-24 January 2010