July 2020 / India

July 27 2020

India allows manufacturing and other operations in a bonded manufacturing facility

With the Government’s continuous efforts to promote India as the manufacturing hub globally and the commitment towards ease of doing business, another initiative in this direction by the Central Board of Indirect Taxes (CBIC) is allowing import of raw materials and capital goods without payment of duty for manufacturing and other operations in a bonded manufacturing facility.

When the raw materials or capital goods are imported, the import duty on them is deferred. If these imported inputs are utilised for exports, the deferred duty is exempted. Only when the finished goods are cleared to the domestic market, import duty is to be paid on the imported raw materials used in the production. Import duty on capital goods is to be paid if and when the capital goods are cleared to the domestic market.

  Bonded Manufacturing

Note:When the raw materials or capital goods are imported, the import duty on them is deferred. If these imported inputs are utilised for exports, the deferred duty is exempted. Only when the finished goods are cleared to the domestic market, import duty is to be paid on the imported raw materials used in the production. Import duty on capital goods is to be paid if and when the capital goods are cleared to the domestic market

*When finished goods are exported, in addition to the waiver of BCD + IGST on the imported goods used, the GST on the finished goods can be zero-rated.

  To read more about bonded warehousing: https://www.investindia.gov.in/bonded-manufacturing
July 27 2020

India has the world’s 2nd largest mobile market

The Telecom industry in India is the second-largest in the world with a subscriber base of over 1.2 bn. The industry has witnessed exponential growth over the last few years primarily driven by affordable tariffs, wider availability, roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers and a conducive regulatory environment. Indian smartphone users consume maximum data in the world at 9.8 GB per month.
  • Total number of Subscriber Identity Module (SIM) connections is expected to reach 1.4 bn by 2020 from 1.1 bn in 2017
  • Telecom industry contribution to GDP is expected to reach 8.2% by 2020 from 6.5% in 2017
  • 4mn total employment
  • 525 mn+Smartphone users
  • 100: No. of smart cities
The market:
  • Indian Mobile industry contributed over $ 140 bn to India's GDP in 2015
  • Digital India is expected to create $ 1.3 tn business opportunity by 2020
  • Number of internet users in India is expected to reach 829 mn by 2021
  100% FDI is allowed in the Telecom, wherein upto 49% is allowed through the automatic route and beyond 49% under government route. For further details, please refer FDI Policy
July 15 2020

Under the National Solar Mission, India aims to install 100 GW grid-connected solar power plants by 2022

No alternative text description for this image   In 2019, India was ranked as the fourth most attractive renewable energy market in the world:
  • 5th largest installed capacity of renewable energy in the world
  • 4th largest installed capacity of wind power in the world
  • 5th largest installed capacity of solar power in the world
The market:
  • 1,000+ GW: Renewable energy potential in India
  • 81 GW: Installed renewable energy capacity (as of August 2019)
  • 22%: Share in total installed capacity
  • 137%: Increase in renewable installed capacity (FY 2013-14 to FY 2018-19)
  The country has set an ambitious target of 450 GW of renewable power by 2030. This is the world's largest expansion plan in renewable energy. Up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003. For further details, please refer FDI Policy  
July 15 2020

Pharmaceutical is among the top 10 sectors in India in terms of FDI and boasts of a strong manufacturing base – making New India an ideal destination for global players

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India is the 3rd largest pharmaceuticals industry in the world by volume

India is a prominent and rapidly growing presence in global pharmaceuticals. It is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and also supplies 62% of global demand for vaccines.

India ranks 3rd worldwide for production by volume and 10th by value. India is the only country with largest number of US-FDA compliant Pharma plants (more than 262 including APIs) outside of USA. India has nearly 1400 WHO-GMP approved Pharma Plants, 253 European Directorate of Quality Medicines (EDQM) approved plants with modern state of the art Technology.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The API industry is ranked third largest in the world contributing 57% of APIs to prequalified list of the WHO.

The country is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The domestic pharmaceuticals market turnover reached $20.03 bn in 2019, up 9.3% from 2018, growing as penetration of health insurance and pharmacies rise.

  • From 2018-19, India’s pharmaceuticals exports were worth $19.3 bn with a growth of 10.72% year on year
  • India holds 12% of all global manufacturing sites catering to US market
  • The cost of manufacturing in India is approximately 33% lower than that of the US
100% Foreign Direct Investment (FDI) is allowed under the automatic route for greenfield pharma.   100% FDI is allowed in brownfield pharma; wherein 74% is allowed under the automatic route and thereafter through government approval route For further details, please refer FDI Policy