About Us Overview of Indian Economy

India ranks 63 in World Bank’s Doing Business Report

India has recorded a jump of 14 positions against its rank of 77 in 2019 to be placed now at 63rd rank among 190 countries assessed by the World Bank. India's leap of14 ranks in the Ease of Doing Business ranking is significant considering that there has been continuous improvement since 2015 and for the third consecutive year India is amongst the top 10 improvers. As a result of continued efforts by the Government, India has improved its rank by 79 positions in last five years [2014-19].

India has improved its rank in 7 out of 10 indicators and has moved closer to international best practices (Distance to Frontier score).Significant improvements have been registered in ‘Resolving Insolvency’, 'Dealing with Construction Permits', ‘Registering Property’, ‘Trading across Boards’ and ‘Paying Taxes’ indicators.The changes in sevenindicators where India improved its rank are as follows:

S.No.

Indicator

2018

2019

Change

1

Resolving Insolvency

108

52

+56

2

Construction Permits

52

27

+25

3

Trading Across Borders

80

68

+12

4

Registering Property

166

154

+12

5

Paying Taxes

121

115

+6

6

Getting Electricity

24

22

+2

7

Starting a Business

137

136

+1

 

Overall rank

77

63

+14

The important features of India's performance this year are:

  • The World Bank has recognized India as one of the top 10 improvers for the third consecutive year.
  • Recovery rate under resolving insolvency has improved significantly from 26.5% to 71.6%.
  • The time taken for resolving insolvency has also come down significantly from 4.3 years to 1.6 years.
  • India continues to maintain its first position among South Asian countries. It was 6th in 2014.

Overview of Indian Economy

  • Poised to become 5th largest Economy in the World (USA, China, Japan, Germany)
  • Size: US$2.4 trn
  • Fast growing middle class. Half of the population of more than 1,2 billion are now middle class
  • 3rd largest economy in the world with size of US$ 8.6 trillion by purchasing power parity (PPP) and is expected to rise to US$ 20 trillion in size by 2025
  • More information at http://www.doingbusiness.org/en/data/exploreeconomies/india

Foreign Direct Investments (FDI)

  • Number 1 FDI Destination in the World. Most open economy in the world for investment
  • FDI increased by 37% since launch of the program Make in India
  • FDI inflow over (April-Sept 2017): US$25.4 bn - increase of 17%
  • In the next two decades more than USD 5 tn investments planned for infrastructure
  • Steady amendments in laws and regulations guiding investment
  • National Investment and Infrastructure Fund (NIIF) created with a corpus of US$6.2 bn
  • 100% FDI ALLOWED IN 92% OF SECTORS
  • More information at https://www.investindia.gov.in/foreign-direct-investment

 

 

 

More information at https://www.investindia.gov.in/setting-up-business-in-india

Ease of doing business

  • Biggest Tax Reform: Goods and Services Tax (GST), an integrated indirect tax introduced on July 1st 2017
  • Aadhaar, a 12-digit ID based on biometric data, made mandatory for essential services, bringing improved transparency
  • New Bankruptcy Law Passed
  • Validity of industrial license extended to 7 years
  • Permanent Residency Status for foreign investors for 10 years

Government has set up four leading initiatives to augment India’s manufacturing and innovation capabilities while supporting training of workforce and boosting connectivity:

Make in India

The Make in India program was launched in 2014, attracting investment into manufacturing

Skill India

Various initiatives under this campaign:

  • National Skill Development Mission
  • National Policy for Skill Development and Entrepreneurship, 2015
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
  • Skill Loan scheme
  • Rural India Skill
  • More information at https://www.msde.gov.in/ and https://skillindia.gov.in/

Digital India

The vision of Digital India programme is to transform India into a digitally empowered society and knowledge economy.

Pillars:

  • Broadband highways
  • e-Governance: Reforming government through technology
  • e-Kranti
  • IT jobs – training and skills development to cater to the needs of the global IT industry
  • Public internet access programme

Digital India would encompass:

  • Setting up of a pan-India fibre-optic network
  • Wi-Fi services in cities with a population of more than 1 mn.
  • Broadband access to 250,000 village clusters by 2019
  • Digital lockers to each citizen
  • Universal mobile phone connectivity
  • Automation in delivery of government services
  • Leadership position in IT toward betterment of health, education and banking services
  • More information at https://www.digitalindia.gov.in/

Startup India

  • Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country
  • 3rd largest tech driven Start-up ecosystem globally
  • India is home to around 20,000 Startups, 1,400 new entrants every year
  • World’s youngest start-up nation
  • 72 % Startup founders are below 35 years
  • Startup investment in India: $4.7 Bn in 2014, $9 Bn in 2015, $4 Bn in 2016 and $6.4 Bn (first 6 months of 2017)
  • More information at https://www.startupindia.gov.in/

Other Trade Bodies (https://www.fieo.org/view_section.php?lang=0&id=0,34,35)

Opportunities for Slovenia in Indian Market

AUTOMOBILE / AUTOMOBILE COMPONENTS

  • Huge demands for low-cost electric vehicles that are suited for safe short-distance urban commutes (averaging 50-100 km/trip). It is estimated that total electric vehicles sales would amount to 6-7 million units by 2020
  • India has the fifth largest passenger vehicle and commercial vehicle market
  • Six million-plus hybrid and electric vehicles to be sold annually, by 2020
  • By 2026, India is expected to be the third largest automotive market by volume in the world
  • Passenger vehicles: cars, utility vehicles
  • Two-wheelers: mopeds, scooters, and motorcycles
  • More information at https://www.investindia.gov.in/sector/auto-components

ELECTRONICS

The Indian electronics industry is one of the largest in the world and is expected to reach US $ 400 bn by 2020.

Current scenario

  • Changing global landscapes in electronics design and manufacturing capabilities, and cost structures have turned the attention of global companies towards India:
    • 65 % of the electronics is currently imported
    • Electronics imports, are currently the third highest, after crude and gold
    • 25 - 30 % of the systems are only assembled in India
    • Less than 10 % of the electronic systems are completely designed and manufactured in India.
    • Almost 100 % of semiconductors are imported
  • Domestic production can cater to a demand of only US$ 100 bn by 2020. This is a demand-supply gap of US$ 300 bn
  • More information at https://www.investindia.gov.in/sector/electronic-systems

IT & BPM

India is emerging as the hub for “Digital Skills”. The country spends $ 1.6 bn annually on training workforce in the sector. The industry is the largest employer within the private sector, employing 3.9 mn people. India is transforming into a digital economy with over 450 mn plus internet subscribers; only second to China.

The Indian IT and ITeS industry is divided into 4 major segments:

  • IT services, Business Process Management (BPM), software products & engineering services, and hardware.
  • Indian IT companies can offer solutions in the following segments: Social Mobile Analytics & Cloud (SMAC),
  • ERP, CRM, mobility and user experience technologies.
  • Business Process Management sector, which is being driven by greater automation, expanding omni-channel presence, application of analytics across entire value chain
  • More information at https://www.investindia.gov.in/sector/it-bpm  

Engineering and R&D

India is emerging as the Engineering and Design hub for various vertical domains such as Automobiles, Aerospace, Consumer electronics, Machinery, Semiconductor, Telecom, Construction, Industrial automation, Medical devices, Energy and Computing

  • Ranked as the top innovation destination in Asia and second in the world for new innovation centres
  • 25 innovation centres
  • Indian E&RD market is expected to reach US$ 38 bn by 2020.
  • Over 200,000 engineers have been employed by service providers
  • India-based E R&D centres resulted in cost savings of US$ 20 bn for global organisations