CII Champion Manufacturing Industries 2025

Champion Manufacturing
Industries 2025
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Champion Manufacturing
Industries 2025
Table of Contents
Executive Summary 01
Background 03
Need for Make in India 2.0 11
Overall level recommendations 25
Annexure 40
Sector and Industry level recommendations 40
Building Firm Level Competitiveness 105

Executive Summary
‘Champion Manufacturing Industries 2025'
India is one of the fastest growing emerging economy. Manufacturing is key and at the heart of economic security as it provides a significant multiplier
to economy in terms of output and employment creation. As per National Manufacturing Policy 2011, GoI ‘Every job created in manufacturing has a
multiplier effect of 2-3X additional jobs in related activities.Manufacturing is thus rightfully at the center-place of Hon’ble Prime Minister’s Vision for
Make in India i.e. to increase contribution of manufacturing to GDP to 25%. The manufacturing sector will have to grow at at-least 12.7% year on year to
power India’s economic growth story sustainably and to actualize the vision of Make in India. Achieving this high growth trajectory will entail an integral
blend of policy interventions and firm-level actions targeted at maximizing local value add, creating scale, capturing global market share and fulfilling
India’s job creation needs.
Make in India has brought about a significant shift towards local value addition, sustainable innovation and ease of doing business. It also aims at
increasing federal and state alignment for coherent policy making and positions India centre-stage as a global manufacturing hub. In line with the
above evolution, CII believes that it istime for the next phase of Make in India or Make in India 2.0 that will strategically identify specific Champion
Industries which will drive growth in manufacturing.
With this background CII Manufacturing Council has been working on an initiative to identify Champion Manufacturing industries that have the
potential to drive double digit growth in manufacturing and contribute to significant job creation and in which India could be number 1 or 2 in the next 10
years.
CII identified a list of manufacturing sectors that contribute to the majority of manufacturing GDP which include Aerospace and Defense, Auto and
Auto Components, Cement, Chemicals, Engineering, ESDM, Pharmaceuticals, Steel and Textiles.
Within these 9 broad sectors CII identified 156 industries that comprise the universe of all major sub-sectors. For each of these 156 industries CII did an
analysis on the Commercial and Strategic Attractiveness of the industry. Commercial attractiveness included factors such as Market Attractiveness,
Competitive Landscape, Supply Chain Ecosystem, Ease of doing business, Favourable Infrastructure and Human resource capital and while Strategic
Attractiveness included factors such as Industry Ecosystem Development, Economic Impact, Investment Favourability, Environment Sustainability.
Basis this criteria, a comparative analysis was done to identify 28 Champion Industries that were leading. These are Aircraft Components, Auto-
Electricals & Electronics, Automotive batteries, HCV, Passenger Cars, Two and Three wheelers, Cement, Agro Intermediates, Agro Chemicals, Basic
Polymers and Elastomers, Construction Chemicals, Other Performance Chemicals, Valves and Pumps, Construction Machinery, Machine Tools,
Pressure Vessels, Solar PV, Lighting (Conv. + LED), Mobile phones, PCB and PCB A, Bulk drugs, Pharma APIs, Generic Pharmaceuticals, Flats, Forgings
and Castings, Longs, Apparels and Made-ups.
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Industries 2025
For each of the industries sectoral committees from within CII identified key interventions that would help give a fillip to the industry. Wide industry
consultations were done at each step to ensure accurate articulation of recommendations. Common themes were identified from sectors and across
sectors to identify sector level and overall manufacturing level recommendations respectively. The recommendations at the overall and sector level
have the potential to create significant positive impact on other industries in the overall manufacturing sector.
Championing Manufacturingin India will entail targeted interventions aimed at unleashing thebasic building blocks of manufacturing such as cost,
technology, manpower and policy regime and establishing the drivers for championing manufacturing such as building scale and market share,
platform innovation, brand and sustenance.
Using the above framework CII has identified key policy interventions at the overall manufacturing level, sector level and industry level. If pursued these
interventions will trigger significant Industry actions translating to the creation of Champion Industries, significant growth in output (from the current
average sales growth of 8-10% to 15-20%), employment generation (from the current levels of 0-5% to 5-10%) and increase in India’s share of global
manufacturing exports (from 1.6% currently to 3-4%).
CII’s Recipe of Excellence, which is an online tool developed by analysing performance of 32,000 companies and that benchmarks competitiveness
across 6 functions – marketing, operations, supply chain, human resources and leadership, research development and technology and environment
sustainability and governance to help identify a company’s weakest link, will in tandem help companies become more competitive and enable them to
transition from good to great.
CII has shared the study and its findings with senior Government officials including Mr P K Sinha, Cabinet Secretary; Mr Amitabh Kant, CEO, NITI Aayog;
the PM-appointed Group of Secretaries on Commerce & Industry (multiple occasions), Mr Ramesh Abhishek, Secretary, DIPP; Mr Ashok Lavasa,
Finance Secretary; Ms Rita Teaotia, Commerce Secretary; Dr Aruna Sharma, Secretary, Ministry of Steel; Ms Aruna Sundararajan, Secretary, MEITY; Mr
Girish Shankar, Secretary, Department of Heavy Industry, Ms. Rashmi Verma, Secretary, Ministry of Textiles; Mr Anuj Kumar Bishnoi, Secretary,
Department of Chemicals & Petrochemicals; Mr. K. K Jalan, Secretary, Ministry of MSME and Ms. M Sathiyavathy, Secretary, Ministry of Labour &
Employment. All officials have been very supportive of the initiative.
Mr Abhishek at the inaugural session of the conference on Make in India, Karnataka in February 2017 announced that the CII study would form the
basis for Make in India 2.0.
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Industries 2025
Background
India –fastest growing emerging economy… need to sustain….
Manufacturing key and at heart of our economic security
Russia -3.7%
EU 1.9%
China 6.9%
USA 2.4%
Japan 0.5%
Brazil -3.8%
India 7.6%
RSA 1.3%
Source : World Bank : 2015 figures

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Industries 2025
… and, thus, the core of the Hon’ble PM’s Vision for Make in India
If we have to develop a balance between imports and exports, we

will have to strengthen manufacturing sector. If we have to put in
use the education, the capability of the youth, we will have to go
for manufacturing sector and for this Hindustan also will have to
lend its full strength, but we also invite world powers. Therefore
I want to appeal [to] all the people world over… "Come, make in
India", "Come, manufacture in India". Sell in any country of the
world but manufacture here. We have got skill, talent, discipline,
and determination to do something… "Come, Make in India.
- Excerpt from Hon'ble Prime Minister Shri Narendra Modi's speech on the Independence day of India, 15 August 2014, New Delhi
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Industries 2025
And rightly so…
Economic activity generated by $1 of sector GDP

USA | April 2012-2014
Manufacturing 1.33
$ 1 in $ 1.33
Agriculture, forestry,… 1.11 manufacturing in economy
Transportation and… 1
Every job created in
Construction 0.86
manufacturing has a multiplier
Arts, entertainment,… 0.81 effect of 2-3X additional jobs
in related activities.
Information 0.8
-National Manufacturing Policy 2011, GoI
Education Healthcare and… 0.72
Retail trade 0.66
Other services, except… 0.63
Professional services 0.61
1. Figures are as per April 2014

2 . Source US Bureau of Economic analysis, Annual Input – output tables
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Industries 2025
To power India's economic growth story sustainably…
Need to generate 100 million jobs and increase contribution of manufacturing sector to
GDP to 25% by 2025
2025:
GDP ~USD 3.62 Trillion1 /
INR 235 Lakh Crore
2015:
GDP ~USD 1.88 Trillion1 /
INR 122.79 Lakh Crore Aspiration:
Manufacturing
contribution to GDP
Current: 25% = ~ USD 905 Billion /
INR 58.85 Lakh Crore
Manufacturing
contribution to GDP
16.2% = ~ USD 306
Billion /INR 19.94 Manufacturing sector
Lakh Crore Assuming
will need to grow at
7.5%
y-o-y GDP least 12.7% y-o-y to
growth reach 25% of total
GDP by 2025
1
At Current Prices
USD 1 = INR 65
GDP basis GVA calculation methodology
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08 Manufacturing
Industries 2025
Will require an integral blend of policy interventions and
firm-level actions . . .
25%
of GDP
16.2%
of GDP
Today Policy Firm-Level International 2025 Target

Eco-system Initiatives Market Access
targeted at
maximizing local value add, creating scale, capturing global market share and fulfilling India’s job creation needs …
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Industries 2025
The journey so far. . .
1947 - 2014 MAKE IN INDIA 2014
• Policies addressed need of day vs. • New vision for economic growth driven
emerging and strategic demands by manufacturing unveiled by Hon’ble PM
• State-led industrialization • Focus on local value addition, sustainable

innovation and ease of doing business
• Protectionist measures for select
manufacturing sectors • Federal + State alignment for coherent
policy making
• Increasing perceived attractiveness
of services sector vs. manufacturing • Putting India centre-stage as a global
manufacturing hub
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Industries 2025
Make in India 2.0
MII 2.0 : The Concept
STRATEGICALLY IDENTIFY SPECIFIC CHAMPION INDUSTRIES
STRENGTHEN ECO-SYSTEM
Identify manufacturing
industries in which
MAKE IT HAPPEN
- India could be number Address issues related to
1 or 2 in the next
10 years - Non-competitive costs
Focus on
- Encouraging technology
- can drive double digit - Scale and market share
Investments
growth and significant
job creation - Appropriately skilling - Platform Innovation
manpower - Brand
- Empowering policies - Sustenance
Enhancing India’s soft power

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Industries 2025
The Concept in action . . .
IDENTIFICATION
IDENTIFICATION OF TOP
OF UNIVERSE OF
MANUFACTURING SECTORS
INDUSTRIES
1. Aerospace and Defense

Criteria for Filtration
2. Auto and Auto Components
Current Driver
3. Cement
• Local Manufacturing
4. Chemicals
• Dependence on Imports
5. Engineering
6. ESDM Future Indicator
7. Pharmaceuticals • Ability to Manufacture
• Ability to Export
8. Steel
• Potential for Disruption
9. Textiles
~156 industries
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Industries 2025
Universe list of industries studied under each sector (1 of 2)
Aerospace and Defence Auto and Auto Components Cement
Aircraft Instrumentation Passenger Cars Auto-Electricals & Cement
Fixed Wing Airplanes And Aeronautical Electronics
Instruments Commercial Vehicles Portland Cement,
Such As Vans, Lorries, Auto Ancillaries -non Aluminous Cement, Slag
Helicopters Lighting Equipment Over-The-Road, metallic Cement, and Other
(Rotary wing) For Aircraft Tractors For Semi- Varieties of Cement
Automotive Seats
Trailers Etc.
Aircraft Launching Construction Machinery Quicklime, Slaked Lime
Robotics and UAV Gear, Aircraft Carrier HCV and Hydraulic Lime
Bodies, Including Cabs
Catapults And Related Motor Vehicle Engines for Motor Vehicles
Equipment ; EMALS Plasters of Calcined
Spacecraft & Rockets
Two and Three wheelers Textiles Gypsum or Calcined
Sulphate
Protective Gears and
Silk
Aircraft Components and Armory Trailers And Semi-
Wool, or animal yarn Cement Building Blocks
sub-systems Trailers For Transport (Ready-to-Build)
Armoured Military Vehicles Cotton
of Goods or Passengers
Weapons, Ammunition Avionics Other vegetable fibres Plaster Statues and
and Electronic Fuses Other Attachments to other Plaster Products
Pharma Motor Vehicles Man-madefilaments
Man- made staple Articles of Concrete,
Materials (Aircraft grade Generic Tyres fibres Cement or Artificial Stone
composites) Pharmaceuticals
Wadding, Felt and sanitary ware
Bulk drugs Automotive batteries
Automotive Lighting Carpets Asbestos Sheets
Aero Engine
Biosimilar Special Woven Fabrics Concrete bricks / blocks
Land Systems Hospital Medical Pistons, Piston Rings Knitted or crocheted fabrics
and Carburettors Hume Pipes and other
Supplies Apparel Pre-Fabricated
Air Navigation Systems APIs Automotive Axles Structural Components
Made-ups
of Cement
Submarines, Frigates and Steel Footwear, Gaiters and
OPVs the like Ready mix concrete
Forgings and Castings
Headgear Refractory materials
Float / Hull Longs Ductile Iron Pipe Umbrellas Cements Used in
Propulsion - Turbines Flats Semis Prepared Feathers Dentistry
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Industries 2025
Universe list of industries studied under each sector (2 of 2)
Chemicals Engineering ESDM
Fertilizers General-Purpose Machinery For Electronic Capacitors, Resistors, Chokes, Radio And Television Studio and
Machinery Metallurgy Coils, Transformers Broadcasting Equipment
Performance
Electron Tubes, Diodes, Transistors Data Communication Equipments
Chemicals Special-Purpose Moulding Boxes and
Machinery Moulds Integrated Circuits (Analog, Digital or Hybrid) Mobile phones and accessories
Chloralkali Cable Television Equipment, Transmitting
Electric Generators HVAC & R Printed Circuit Boards and sub-assemblies
and Receiving Antenna Including Dish, Vsat
Upstream Valves Fire & Safety Systems
Petrochemicals Stereo Equipment, Speaker Systems,
Cable Management Amplifiers For Musical Instruments and
Pumps systems Display Components (Plasma, Polymer,
Basic Polymers Public Address Systems, Microphones,
LCD, LED) Karaoke Machines, Headphones
Engineering Plastics Air pollution & water (E.G. Radio, Stereo, Computer)
Compressors treatment equipment
Elastomers Printer Cables, Monitor Cables, Usb Cables, Magnetic And Optical Media
Solvents Pumps And Valves Automatic doors, Connectors Etc.
For Non-Fluid metal doors, and
Dyes and Pigments aluminum windows Microprocessors Conventional Lighting and LED lighting
Power Applications fixtures and controls
fenestration products
Basic Inorganic Power supplies including inverters, UPS,
Chemicals Powertrain and Computer and Television Displays
Forging and Casting Stabilizers, SMPS
transmission
Optical Equipment And Instruments, Communication Equipment including BTS, BSC
Basic Organic
Ovens, Furnaces & Consumer Electronic Devices Energy Meters
Chemicals Textile Machinery
Pressure Vessels
Desktop Computers, Laptop Computers,
Agrochemicals Solar energy Hand-Held Computers (E.G. Pda), Mainframe Optical Fibre
Bearings Computers and Computer Servers
Pharmaceuticals components
Magnetic And Optical Storage Devices Li-Ion Batteries
Oleo-chemicals Lifts, Escalators And
Moving Walkways Steam Turbines Monitors, Keyboards, All Types of Mice, Automatic Washing Machines
Industrial Gases Joysticks, Etc
Machine Tools Cutting Tools
Bio-chemicals Printers, Scanners, Including Bar Code
Electroplating Scanners, Smart Card Readers, Virtual Set Top Box
Machinery Electrical equipment
Paints & Coatings Reality Helmets, Computer Projectors
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Industries 2025
IDENTIFICATION IDENTIFICATION OF CHAMPION

OF UNIVERSE OF INDUSTRIES BASED ON
INDUSTRIES CA AND SA1

CRITERIA FOR FILTRATION CRITERIA FOR FILTRATION
Current Driver Commercial Attractiveness
3. Cement
• Local Manufacturing • Market Attractiveness
4. Chemicals • Competitive Landscape
5. Engineering • Supply Chain Ecosystem
Future Indicator • Ease of doing business
6. ESDM
• Ability to Manufacture • Favourable Infrastructure
7. Pharmaceuticals
• Ability to Export • Human resource capital
8. Steel
9. Textiles Strategic Attractiveness
• Industry Ecosystem Development
• Economic Impact
~156 industries
• Investment Favourability
• Environment Sustainability
1
Commercial Attractiveness (CA) ; Strategic Attractiveness (SA)
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Industries 2025
Detailing of criteria …
Strategic Attractiveness Commercial Attractiveness
Factor Sub-Factor Weight Factor Sub-Factor Weight
Availability/ Use of Industry Indian Market Contribution to the globe 30%

40%
Industry Clusters Expected Indian Market Contribution
30%
Ecosystem Information Availability/ Ease of Market to the globe
Networking 30%
Development Attractiveness Growth rate (2014/5-2025) (India) 20%
30% 20%
Impact on Ancillary Industries/
30% Export Potential 10%
Services
Import Substitution 10%
Contribution to GDP 40%
Substitute global location
Economic 30%
Competitive (that could compete with India)
Impact Job Creation/ Potential 25% Landscape No. of domestic players 30%
35% 15%
Market Concentration 40%
Ability to drive future investments 35%
Availability of local downstream
Supply Chain 50%
suppliers
FDI inflow 45% Ecosystem
20% Maturity of existing supply chain
ecosystem 50%
Investment
Attractiveness for Local Capital EODB Ease of establishment (registration,
Favourability 25% 100%
Investment 15% approvals, licenses etc.)
20%
Infrastructure availability (land,
Favourable FDI regulations/ rules 30% equipment etc). 35%
Infrastructure
Technology availability 30%
20%
Impact on Environment 45%
Cost Associated with the infrastructure 35%
Environment
Environmental Regulations/ Human Availability of skilled labour 50%
Sustainability 35%
Framework Resource
15% Cost of labour 35%
Capital
Reporting on Environment 20% 10% Frequency of labour disruption 15%
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Industries 2025
IDENTIFICATION IDENTIFICATION OF CHAMPION

OF UNIVERSE OF INDUSTRIES BASED ON
INDUSTRIES CA AND SA1

CRITERIA FOR FILTRATION CRITERIA FOR FILTRATION
Current Driver Commercial Attractiveness
3. Cement
• Local Manufacturing • Market Attractiveness
4. Chemicals • Competitive Landscape
5. Engineering • Supply Chain Ecosystem
Future Indicator ~28
• Ease of doing business
6. ESDM
• Ability to Manufacture
industries identified
• Favourable Infrastructure
7. Pharmaceuticals
• Ability to Export • Human resource capital
8. Steel
9. Textiles Strategic Attractiveness
• Industry Ecosystem Development
• Economic Impact
~156 industries
• Investment Favourability
• Environment Sustainability
1
Commercial Attractiveness (CA) ; Strategic Attractiveness (SA)
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Industries 2025
… Translating to
Strategically Attractive Most Attractive – Champion Industries
High
• Aircraft Components and sub-systems • Valves and Pumps

• Auto-Electricals & Electronics • Machine Tools
• Automotive batteries • Pressure Vessels
• Construction Machinery • Solar PV
• Ready-Mix Concrete • Lighting (Conv. + LED)
• HCV
• Performance Plastics • Mobile phones
• Passenger Cars
• PCB and PCB A
• Two and Three wheelers
Commercially Attractive
• Electronic Capacitors, Resistors, Chokes, Coils, Transformers • Bulk drugs

• Cement • Pharma APIs
• Semis • Agro Intermediates • Generic Pharmaceuticals
• Agro Chemicals • Flats
• Basic Polymers and Elastomers • Forgings and Castings
• Construction Chemicals • Longs
• Other Performance Chemicals • Made-ups
• Apparel
Emerging Commercially Attractive
• Armoured Military Vehicles • Automatic doors, metal doors, • Auto Ancillaries -non metallic • HVAC & R
• Robotics and UAV and aluminium windows • Automotive Lighting • Industrial Bearings
• Spacecraft & Rockets fenestration products • Automotive Seats • Powertrain and transmission
Moderate
• Refractory Materials • Fire & Safety Systems • Cable Management systems • Power supplies including
• Electronic Chemicals • FiberOptics • Compressors inverters, UPS, Stabilizers,
• Excipients and Additives • Set Top Box SMPS
• Solvents • Biosimilar
• Air pollution & water • Ductile Iron Pipe
treatment equipment
Source : Frost & Sullivan Analysis Moderate Commercially Attractive High

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Industries 2025
. . . .28 Champion Industries across 9 broad sectors
Sector Industry Sector Industry

Aerospace & Pumps and Valves
Aircraft Components and sub-systems
Defence
Machine Tools
Engineering
Auto-Electricals & Electronics Pressure Vessels
Automotive batteries Solar PV
Conventional Lighting and
Heavy Commercial Vehicles
Auto and Auto LED lighting
Components
Construction Machinery ESDM Mobile phones
Passenger Cars Printed Circuit Boards and
sub-assemblies
2/3 wheelers
Bulk drugs
Cement Cement
Pharma Generic Pharmaceuticals
Agro Intermediates
Pharma APIs
Agro Chemicals
Flats
Chemicals Basic Polymers and Elastomers Steel Forgings and Castings

Longs
Construction Chemicals
Apparel
Textiles
Other Performance Chemicals
Made-ups
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Industries 2025
Mapping of Select GoI Schemes
Sanitation & Healthcare Urbanization Infrastructure Rural Transformation
• Swachh Bharat • Smart City Mission Roads / Highways • Deen Dayal Upadhaya
• Indradhanush • Housing for All • Setu Bharatam Project Gram Jyoti Yojana
• Namami Gange • AMRUT • Swadesh Darshan Yojana • Pradhan Mantri Awas
Mission • HRIDAY • Pradhan Mantri Gram Sadak Yojana (Rural)
• National Health • Deen Dayal Yojana • Pradhan Mantri Gram
Mission e-Rickshaw Project Ports - SagarMala Project SinchaiYojana
Power • SPMRM or RURBAN
• Prakash Path (UJALA) India Mission
• National Solar Mission
• National Renewables Mission
Competitiveness : Make in India, Skill India, Digital India
Cement; Basic Polymers and Heavy Commercial Vehicles; Heavy Commercial Vehicles; Heavy Commercial Vehicles;
Elastomers; Construction Two and Three wheelers; Two and Three wheelers; Cement; Basic Polymers and
Chemicals; Other Performance Cement; Basic Polymers and Basic Polymers and Elastomers; Elastomers; Construction
Chemicals; Construction Elastomers; Construction Construction Chemicals; Other Chemicals; Other Performance
Machinery; Pumps and Chemicals; Other Performance Performance Chemicals; Chemicals; Construction
valves; Solar PV; Conventional Chemicals; Construction Construction Machinery; Flats; Machinery; Pumps and valves;
Lighting and LED lighting; Machinery; Pumps and valves; Forgings and Castings; Longs Machine Tools; Pressure
Mobile phones; Printed Circuit Machine Tools; Solar PV; Vessels; Solar PV;
Boards and sub-assemblies; Conventional; Lighting and Conventional; Lighting and
Bulk drugs ; Generic LED lighting; Mobile phones; LED lighting; Printed Circuit
Pharmaceuticals; Pharma Printed Circuit Boards and Boards and sub-assemblies;
APIs; Flats; Forgings and sub assemblies; Flats; Flats; Forgings and Castings;
Castings; Longs Forgings and Castings; Longs Longs; Made-ups; Apparel
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Industries 2025
Championing Manufacturing will entail targeted interventions …
Overall
Industry /
Manufacturing/ Sector
Segment
Eco-system Level
Level
Level
…aimed at…
Unleashing the Establishing the

Basic Building Blocks Drivers for Championing
of Manufacturing Manufacturing
Cost Scale & Market Share
Technology Platform Innovation
Manpower Brand
Policy Regime Sustenance
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Industries 2025
…instilling a holistic framework to create champion industries
Drivers for Championing Manufacturing
Basic Building Blocks of
Manufacturing Scale and Market Platform Brand Sustenance
Share Innovation
• Plug and Play infra • Plug andPlay
• Finance • Finance
• Power • Power • Plug and Play • Zero Defect • Zero Defect
Cost
• Raw Material • Raw Material
• Logistics • Logistics
• Zero Defect • Zero Defect
• IP & Global Standards • IP & Global Standards

• Institutional Eco-system • Automation • Institutional Eco- • IP & Global Standards
• Collaborations Technology • IP & Global Standards system • IP & Global Standards • Institutional
• Automation • Testing • Collaborations Eco-system
• Testing • Testing
• Skills Availability • Skills Availability • Skills Availability

Manpower • Skills Availability • Skills Availability
• Labour Flexibility • Labour Flexibility • Labour Flexibility
• Regulatory
• Policy Certainty • Regulatory
• Taxation • Taxation
• Regulatory
• Land • Land
• Taxation • Policy Certainty
• Environment Policy Regime • Policy Certainty • India Brand
• Cluster Development • Environment
• Trade • Environment
• Compliance
• Cluster Development • Trade
• Compliance • Cluster Development
• India Brand
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Industries 2025
Overall Manufacturing Level Recommendations
Overall
Industry /
Segment
Eco-system Level
Level
Level
Core strategies to champion manufacturing (1/4)
POLICY
• Recognize Champion Industries through special and differential treatment for next 10 years
• Harmonize Indian standards with internationally accepted standards
• Provide stable and co-ordinated policy regime transitions with adequate lead times and certainty e.g.
environmental related regulations in Auto, Cement, Chemicals, Construction Equipment, Pharma, etc.
• Accelerate the announced policy to lower the corporate tax rate to an internationally competitive 18%
• Modify Government procurement approach
- Through domestic purchase preference
- Shift criteria from L1 to TCO1 (Life Cycle Cost of Ownership –Initial Price, Running Cost, Durability,
Sustainability)
- Introduce Green Project Rating system for Government Projects (focus –Emissions, Waste recovery,
Resource Efficiency (energy, water, minerals)
- Remove prior track record clause for indigenously developed new products and establish clear mechanism
for validation
Legend
Imperative Important
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Industries 2025
POLICY
• Expedite setting-up of an umbrella USTR-cum-USITC type body to strengthen the trade negotiating capacity
and streamline review processes for speedy and time bound trade remedial actions
• Enhance Champion Industry Branding –integrate India’s commercial missions with brand building initiative
–structured engagement with diplomats for industry sensitisation and specific KRAs for growth of market
share of India product portfolio
• Speedy implementation of a simple and deflationary GST
• Encourage multilateral funding towards champion industries for lower costs of finance
• Incentivize manufacturers to develop products that have pre-defined targets for reduction in TCO and
emission footprint year on year
• Encourage FDI for setting up R&D labs with financial incentives
• Prioritize EODB for champion sectors
Legend
USITC: United States International Trade Commission ; USTR: United States Trade Representative Imperative Important
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Industries 2025
COST
• Provide time-bound compensation of disabilities on account of finance, power, logistics costs through WTO-
compatible production subsidy based on value addition
• Leverage Industrial Corridors network as spines for creating manufacturing centres / clusters
• Create Plug and Play parks (precursor) for manufacturing companies
• Set-up multi-modal logistics network
• Expedite implementation of inland waterways policy
• Expedite creation/expansion of dedicated railway freight corridors
• Expedite national roadways and ports plan
• Implement electronic tolling through RFIDs
• Power
• Allow net-metering to enable industries to set up solar plants in remote locations and electricity trading /
offset of captive consumption
• Provide internationally competitive and easily accessible priority sector funding
MANPOWER
• Create sector skill councils for all 28 Champion industries and have focussed programmes for each of the
industries
• Extend Fixed Term Employment to all manufacturing sectors
• Extend 2% CSR proviso for funding research chairs in recognized institutes
Legend
• PM Doctoral Fellowship Programme to prioritize champion industries
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Industries 2025
TECHNOLOGY
• Create Champions of ‘the New’
- Atal Incubation Centres to adopt at-least 1 Champion Industry
• Fund for public research to be channelled / focussed on 28 Champion Industries -allocate 50% of
government’s R&D and HRD expenditure to the institutions for 28 Champion Industries
• Initiate a National Standards Mission for Champion Industries; fast-track standards setting and conformance
assessment; requisite resources to be made available
• Indian representation in international standard setting processes and bodies
• R&D incentives
1
- Redefine private sector’s R&D
- Allow accelerated tax deduction on IP valuation and capital investments in labs
- View contract R&D at par with in-house R&D for tax purposes
- Consider Intellectual Property as collateral for financing industry and strengthen Intellectual
- Property Enforcement
• A special fund generated from R&D cess for supporting global partnerships for technology acquisitions
• Investment by private sector for R&D with public institutions to be matched on a 50:50 basis by public funds
Legend
1
include translation of research outputs to commercial production including design and procurement of IP under 35 (2AA) and (2AB) of Income Tax Act.
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Industries 2025
… will trigger significant Industry actions
• Life-cycle cost of ownership oriented design and manufacturing processes addressing sustainability, safety,
running costs, durability, energy and water efficiency, corrosion resistance etc.
• Transition to ‘Green’ and ‘Clean’
• Convergence of attention to national programmes / priorities
- Partnering for development of Industrial Corridors
• Conformance to global standards and quality
• Greater acceptability to external trade opportunities
• Platform innovation and new product development through enhanced focus on research and development
• Greater value addition, particularly locally
• Increased inclination to hire formally
• Increased employability of workforce
Champion
30 Manufacturing
Industries 2025
… translating to a Champion Industry Report Card
Current -Business as Usual Future -Unleashed
Sales Growth
Sales growth
8-10%
15-20%
Sales Growth ROCE ROCE < 20% ROCE > 20%
Sales Growth ROCE
3-4%
1.6%
India’s Share of Global India’s Share of Global

Manufacturing exports Manufacturing exports
0-5% 5-10%
Employment generation Employment generation

Champion
31 Manufacturing
Industries 2025
… and significant growth in output
Indicative
All Figures are in USD Billion
Current Market Size* Business as Usual** Accelerated Growth**
Sector
2015 2025 2025
1
Aerospace and Defense 5 9.2 21
Auto and Auto Components

2
94.2 173.2 261
Cement
3
30 50.7 70
Chemicals 4
144 264.74 444
5
Engineering 107.2 166.3 297
6
ESDM 85 156.3 349
Pharmaceuticals7 22 40.4 90
8
Steel 37.6 69.1 154
9
Textiles 97 210 287
Total 586 1140 1973
* Current market sizes are basis estimates sourced from publically reported data and are not mutually exclusive.
** Business as usual is ~7% growth y.o.y; whereas Accelerated Growth has been taken as 17% growth except for Cement, Chemicals, Engineering and Auto and Auto
Components which have been assumed to grow at 10%, 13%, 12% and 12% respectively
1 Aerospace and Defence –Considered only aircraft components market based on Frost & Sullivan Analysis
2 Auto and Auto Component market size based on aggregation of size of industry from SIAM and ACMA
3 Cement -Reversed the market size based 70 Billion market in 2025 at 540 tonne capacity; Using this estimated current market size at 290 capacity utilization
4 Chemicals Ministry Annual Report 2015-16
5 Engineering market consists of Consists of Capitals Goods, Electrical Equipment Market, ER&D, Construction Equipment, Telecom Equipment and is sourced from IBEF
6 ESDM market size as per report by Department of Electronics and Information Technology
7 Pharma market size as reported by Government department –Department of Pharmaceuticals
8 Market Size calculated from data point -Steel Industry contributes 2% to GDP (may not factor in imports)
9 Basis CII-BCG study "Weaving the Way: Breakout Growth Agenda for the Indian Apparel, Made-ups & Textile industry
Champion
32 Manufacturing
Industries 2025
… and employment generation
Indicative
Employment* Business as Accelerated Growth

Sector Delta**
2015-16 Usual 2025 2025
1
Aerospace and Defense 70,000 76,558 165,056 95,056
2
Auto and Auto Components 12,150,735 16,466,569 37,050,000 24,899,265
3
Cement 150,000 179,264 232,699 82,699
Chemicals4 5,000,000 6,000,000 7,000,000 2,000,000

5
Engineering 4,000,000 5,219,093 6,205,313 2,205,313
6
ESDM 5,513,632 11,383,804 14,104,074 8,590,442
Pharmaceuticals7 2,313,678 4,453,209 5,455,532 3,141,854
8
Steel 600,000 782,864 1,013,687 413,687
9
Textiles 49,000,000 68,000,000 103,000,000 54,000,000
Total 95,428,317
* All employment figures are direct employment except for Chemicals sector where both direct and indirect have been considered
** Delta is between accelerated growth scenario 2025 and current employment as of 2015-16
1 Aerospace and Defence –Considered only aircraft components; Since the base is small growth rate has been taken as 10%; Assumed employment of HAL and
vendors. Business as usual (BAU) growth rate of 1%.
2 Auto and Auto Component employment has been taken from NSDC skill gap report 2013 and figures for 2016 and BAU have been extrapolated this. 2025 figures
are based on AMP II targets using a assuming a 57% direct and 43% indirect ratio.
3 Cement current employment is 1.5 Lakhs; BAU rate is 2% and accelerated rate is 5%
4 Chemicals –Industry estimates ~50 lakh as employment base of Chemicals and Ancillary markets, BAU rate is 2% and acc. rate is3.8%.
5 Engineering market size is 4 Million as taken from IBEF; BAU rates are 3% and Acc. Growth rate is 5%
6 ESDM figures are sourced from NSDC skill gap reports and extrapolated for 2016 and 2025; BAU rates are 8.39% and accrate is 11%.
7 Pharma figures are sourced from NSDC skill gap reports and extrapolated for 2016 and 2025; BAU rates are 7.55% and accrate is 10%;
8 Steel employment as widely quoted sources is 6 lakhs; BAU rate is 3% and Accelerated growth is 6%
9 Textiles –As per the CII-BCG study "Weaving the Way: Breakout Growth Agenda for the Indian Apparel, Made-ups & Textile industry
Champion
33 Manufacturing
Industries 2025
…and increase in India’s share of global manufacturing exports
India’s Share of Global India’s Share of Global

Manufacturing exports Manufacturing exports
1.6% 3-4%
USD 200 Billion USD 500 Billion

(2015)
Target
India’s merchandise exports could grow 11% y-o-y to
achieve target of INR 500 Billion by 2025
Champion
34 Manufacturing
Industries 2025
… supported by CII’s Recipe for Excellence (Rx) …
01 The CII Manufacturing 02 Performance of 32,000 03 Building on these insights,

Council undertook companies was analyzed CII’s Centers of Excellence and
a detailed exercise over a 10-year period specialized services teams were
to distill the ‘recipe using ROCE as a primary brought on board to help build a
of success’ of measure with follow-on framework that would help gauge
manufacturing conversations with CEOs a company’s competitiveness
companies in India and CXOs of the top and identify their weaker links.
over the long term. performing companies
to gain deeper insights.
Champion
35 Manufacturing
Industries 2025
… that identifies a company’s weakest link on its competitiveness
journey and connects to CII’s Centersof Excellence for solutions…
Operations
90
Where Do you Stand?
72
Marketing Environment,
54 Sustainability and
Governance
36
18
26 You
Needs Improvement Excellent HR/ Supply Chain

Leadership Management
Analyze in More Detail
Ideal (100) Average You
Research & Development
Using the Recipe for Excellence Tool companies can quickly identify areas for improvement and work with the
CII Centers of Excellence towards transitioning from good to great
• Easy to use • Available 24 x 7, across all internet enabled platforms • Geography agnostic Available at www.ciimissionmfg.com
Champion
36 Manufacturing
Industries 2025
The Champion Formula
FUTURE - UNLEASHED
CHAMPION INDUSTRY
Increased
Sales & ROCE
Overall
Industry / Increased
Business Manufacturing/ Sector
Segment Exports
as usual Eco-system Level
Level
Level Increased
Employment
www.ciimissionmfg.com
Champion
37 Manufacturing
Industries 2025
…with a proposed review mechanism
Through an Apex-level Inter-ministerial Annual update

Government-Industry participation 3-year review
Joint Task Force & changes
1 2 3
Mode Participation Frequency
Champion
38 Manufacturing
Industries 2025
Summary –Champions of Manufacturing Study
• Opportune time for India to rally around the 28 industries that have the potential to be #1 or #2 globally and create
100M jobs in the next decade
• Each sector has debated and identified specific recommendations that would maximize the probability of success:
- Across the manufacturing sector
- Across the champion sectors
- Across the specific champion industries
• The recommendations involve a close partnership between Government and Industry
• Need to embark on an urgent time bound implementation journey with regular reviews of progress on the key
metrics of success
- Industry sales growth
- Industry global market share growth
- Industry profitability in terms of return on capital invested
-# of jobs created
Champion
39 Manufacturing
Industries 2025
Annexure 1
Sector and Industry Level Recommendations
Overall
Industry /
Segment
Eco-system Level
Level
Level
Index of Recommendations
SECTOR INDUSTRY SECTOR INDUSTRY
Aerospace & Aircraft Components Engineering Pumps and Valves
Defence and Sub-systems
Machine Tools
Auto and Auto Auto-Electricals & Pressure Vessels
Components Electronics
Solar PV
Automotive Batteries
ESDM Conventional Lighting
Construction Machinery and LED Lighting
Heavy Commercial Mobile Phones
Vehicles
Printed Circuit Boards and
Passenger Cars Sub-assemblies
Two and Three Wheelers Pharma Bulk Drugs
Cement Cement Generic Pharmaceuticals
Chemicals Agro Intermediates Pharma APIs
Agro Chemicals Steel Flats
Basic Polymers and Forgings and Castings
Elastomers Longs
Construction Chemicals Textiles Apparel
Other Performance
Chemicals Made-ups
Champion
41 Manufacturing
Industries 2025
Aerospace & Defence
Aerospace and Defence –Sectoral Snapshot and Potential
rd 2.25%
3 Largest defence
defence force budget in
in the world GDP
200,000 60% USD 38.322

employment Requirement Billion Defence
generated by met by imports Budget
sector
Champion
43 Manufacturing
Industries 2025
Aircraft Components and sub-systems - SWOT
STRENGTHS WEAKNESSES
• Large low cost engineering talent pool • Low level of investment in technology, innovation
• Cost competitive technology development and upgradation
capability • Lack of supporting infrastructure and robust supply
• Supportive policy framework chain including availability of raw materials.
• IT competitiveness • Complex policy environment
• Vibrant and innovative MSMEs • Lack of experienced technical manpower
• Lack of process and product certification
infrastructure, applicable for global standards
(FAA, NADCAP) in the country
OPPORTUNITIES THREATS
• Significant budget allocation for defense -17.2 % • Strategic barriers for critical technologies
of the total central government expenditure for • Strong competition from other Asian markets
the year 2016-17; 60%imports).
• Increasing air passenger traffic
• Potential to become a global MRO hub
NADCAP - National Aerospace and Defense Contractors Accreditation Program ; FAA – Federal Aviation Administration, USA
Champion
44 Manufacturing
Industries 2025
Aircraft Components and sub-systems (1 of 3)
PILLAR RECOMMENDATION
Ÿ Create a national data base of process, product and test certification
requirements of global OEMs and create a national certifications body,
affiliated to NADCAP
Ÿ Offset Policy to be linked to a specific segment of defence and civil
aviation as opposed to sector-agnostic counter-trade as at present.
Ÿ India to be developed as a global MRO hub

– Develop National Aerospace Industrial Parks alongside industrial corridors
(near Bangalore, Hyderabad, Nagpur, Pune) with shared infrastructure, e.g.
airfield, ATC, hangars and manufacturing units, MROs, training and
Policy Regime
educational institutes, warehouses, design and testing centres etc.
Ÿ Development and production phases to be combined for procurement
purpose; Alternately, development partner to have first right of refusal for
participating in production phase
Ÿ Mandate indigenisation of spares by IAF / HAL to curb imports and encourage

domestic industry, e.g. Keiretsu programme of Japan - development of
ancillaries catalysed by Technology Development Fund set up explicitly for
purpose for critical items
Ÿ Allow for long term contracting of spares and components to enable industry
to plan and invest accordingly knowing what the 5 year outlook entails.
MRO: Maintenance, Repair and Operations
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45 Manufacturing
Industries 2025
Ÿ Create local manufacturing capacity for strategic raw materials through a capacity
development programme (in PPP / match making / etc. mode)
Ÿ Create an Advanced Materials and Applications Programme (AMAP) to nurture and

foster manufacturing capabilities of aerospace grade materials such as aluminium
alloys, titanium alloys, composites.
– Creating awareness amongst potential users of benefit (e.g. life cycle cost) and
Cost applications
– Providing knowledge on best practices and advisory services on materials,
manufacturing practices and standards.
– Development of requisite skilled workforce
Ÿ Mandate and enforce strict timelines from Acceptance of Necessity (AON) to

Award of Contract
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46 Manufacturing
Industries 2025
Ÿ Develop R&D infrastructure of global standards (design, development infrastructure
including equipment and testing facilities) in Govt Labs /Institutes to be accessible to
Industry (especially MSMEs), by way of pay-per-use model or strategic partnerships ;
Technology through PPP, Government Owned Contractor Operated (GOCO) or any other such model
with technical collaboration with global agencies
Ÿ Channelize Technology Acquisition and Development Fund (TADF) for providing
technology upgradation support / funding support for MSMEs
Ÿ Establish an Aerospace Technology and Skill Development Centre (ATSDC) in

partnership with global OEMs as part of their contracts with MoD
Manpower
Ÿ Establish focussed ITIs in Aerospace Industrial parks in PPP mode, with curriculum
developed with Industry
Champion
47 Manufacturing
Industries 2025
Auto and Auto Components
Automotive – Sectoral Snapshot and Potential
6th Largest 7% 100%

Globally Sector’s
FDI allowed under
by production Contribution
automatic route
(~23.3 Million) to GDP
19 Million 45% Sector’s 9%

employment Contribution to of total FDI captured
generated by Manufacturing by Auto Sector
sector GDP (Jan 14–Jun 15)
Source: SIAM, ACMA, FDI Markets FDI – Foreign Direct Investment
Champion
49 Manufacturing
Industries 2025
Automotive - SWOT
• India recognized as a global manufacturing hub • Import dependency for advanced automotive
by global OEMs technologies
• Extensive presence of entire value chain and • Technology follower v/s leader
strong business eco-system • Implementation of NEMMP / FAME behind pace
• Global leader in small vehicle segment and magnitude
• Inconsistencies in quality
• Implementation of global norms expected to bridge • Policy uncertainty, multiplicity of authorities

the gap between India and Americas /Europe / Japan • Limited local hi technology innovation capabilities
• BNVSAP hampering component localization potential and
• CAFÉ / AFCS growth
• BS VI Norms • May have missed the bus on electronics
• AMP II envisions 3-4x growth in the auto and auto components; limited manufacturing in India
components • Growing non-databased environmental concerns
• Significant focus on roads and highway development • Proliferation of counterfeit goods
BNVSAP - Bharat New Vehicle Safety Assessment Program ; CAFÉ - Corporate Average Fuel Economy ; BS – Bharat Stage NEMMP - National Electric
Mobility Mission Plan ; FAME – Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India
Champion
50 Manufacturing
Industries 2025
Automotive – Overall (1 of 2)
Ÿ Single point authority for all regulations for all road transport with representatives
from all relevant ministries / departments / institutions such as DHI, MoPNG, NATRIP
etc.
Ÿ Regulations / restrictions on vehicles should be performance-cum-emissions
based and not specific technology or fuel-based
Ÿ Announce roadmap for FAME scheme for the remaining 8 years to enable industry
Policy Regime to plan investments and develop indigenous design and component manufacturing
base; FAME needs to be applicable throughout the country.
Ÿ Waive taxes such as registration taxes on electric vehicles to drive adoption
Ÿ Stronger IP enforcement to ensure control of counterfeit goods
Ÿ Mandate procedure for Type Approval and Establishing Conformity of Production for
Safety Critical Components
FAME – Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India;
NATRIP - National Automotive Testing and R&D Infrastructure Project
Champion
51 Manufacturing
Industries 2025
Automotive – Overall (2 of 2)
Ÿ ‘Technology Upgradation and Development Fund’, to allow Indian companies to
create products to meet the changing customer requirements and reduce import
dependency
Ÿ Build consortia aimed at capability development for next generation systems such
Technology as autonomous driving, connected mobility etc. under the Atal Innovation Mission
Ÿ Create Grand Challenges to develop solutions for increased efficiency, safety and
reduced emissions – e.g. Air Car Technology / hydrogen fuel cell technology
Ÿ Create a grid connected solar powered EV charging network in PPP mode ; embed
Cost in Smart City modelling; Streamline EV interactions with Utilities
Champion
52 Manufacturing
Industries 2025
Automotive – Automotive Batteries
Ÿ Announce a clear policy framework for manufacturing and recycling of batteries of all
Policy Regime
types including lead-acid and Lithium-ion
Ÿ Create research programmes in battery and storage technologies and focussed
research on the following aspects
Ÿ Battery technology modelling
Ÿ Battery capacity estimation
Technology Ÿ Energy management systems for electric cars
Ÿ Battery charging
Ÿ Commercialization of new technologies to be supported via academia-industry
partnerships.
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Industries 2025
Automotive – Auto Electricals and Electronics (1 of 2)
Ÿ Create a Phased Manufacturing Programme for the complete value chain of Auto
Electricals and Electronics ensuring component eco-system is developed in tandem
Ÿ Set up automotive EMC (Electronics Manufacturing Cluster) near auto hubs and
incentivize manufacturing of sensors, LEDs, PCBs and LCDs etc.
Ÿ Ensure Domestic Tariff Area sales of Information Technology Agreement-1 (ITA-
1)/Zero duty electronics products manufactured in the country are given the status of
physical export as per para 2.1(b) of the National Policy on Electronics 2012; extending
this status to all suppliers to domestic manufacturers of zero duty ESDM products
Policy Regime would also eliminate the inverted duty structure at Tier-2 industries
Ÿ Incentivise vehicles with a certain minimum auto electronic content designed and
manufactured in India
Ÿ Make budget provision for extending financial incentives as provided for under MSIPS
to enable sufficient scale of projects to be supported
Ÿ Today, even for consolidation within the country, RBI rules prevent Indian companies to
borrow money for acquisitions, foreign companies can borrow for acquisition putting
Indian companies at a disadvantage. Allow companies to borrow for acquisitions
MSIPS - Modified Special Incentives Package Scheme
Champion
54 Manufacturing
Industries 2025
Automotive – Auto Electricals and Electronics (2 of 2)
Capacity Building
Ÿ Accelerate government/industry funded skill development programmes for technicians
Manpower Ÿ Introduce auto electricals and electronics/mechatronics-related courses in engineering /
technical institutes
Ÿ Build capabilities in component integration
Ÿ Create a ‘Technology Upgradation and Development Fund’ for developing customized

products and solutions and reducing import dependency e.g. performance technologies
Technology related to power-train and safety
Ÿ Set up common testing facilities for electronic assemblies/ sub-assemblies especially
for critical tests such as EMI/ EMC, ESD
EMI – Electro-magnetic Integration; EMC - Electromagnetic compatibility ; ESD – Electro-static Discharge
Champion
55 Manufacturing
Industries 2025
Automotive – Construction Machinery
Ÿ Major Government infrastructure projects / initiatives such as Smart Cities, Housing
for all etc. should have time bound implementation targets and accountability with
Cost name(s) of contractor and project start / end date specified
Ÿ Priority sector funding for providing easy and globally competitive financing
Ÿ Expedite passage and implementation of the National Mineral Exploration Policy

Policy Regime
Ÿ Create / allow for equipment banks which integrate physical equipment, finance,
trained operators and spare capacities
Ÿ Skill development program to provide training, certifications, grants and scholarship
to enable consistent pipeline supply of skilled resources.
Manpower
Ÿ Uniform safety requirements across the country by using trained mechanics and
operators
Ÿ Create Technology Co-Development facilities in Technical Institutes for emerging

Technology
technologies, e.g. autonomous construction equipment
Champion
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Industries 2025
Automotive – Passenger Vehicles, 2/3 Wheelers, HCVs (1 of 2)
Ÿ Create a Green Vehicle Exchange incentive for Fleet upgradation / End of Life vehicles
whilst upgrading to hybrid or electric vehicles; bias for higher local content
Ÿ Incentivize OEMs to introduce hybrid or electric vehicles across all segments (e.g.
Most options in PVs exist in Luxury segments only)
Ÿ Introduce Safety Standards / Star rating for vehicles - Reduce tax incidence
on OEMs with higher star rating (currently between 57 - 75%) to offset cost to
consumer
Policy Regime Ÿ 6 X 6 Export Market Push (6 markets*, 6 year plan) – evolve an integrated export-
oriented approach comprising
Ÿ participation in key trade shows,
Ÿ setting up of India Auto Showcase as Government –supported permanent display-
cum-tech centre for demo, training and on-site tech development
Ÿ Commercial missions to be integrated with KPIs linked to exports growth
Ÿ Explore FTAs with Argentina, Bangladesh, Colombia, Kenya, Mexico, Nigeria
Ÿ MAT Credit should be extended till it is completely utilized. (MAT Credit lapses after
10 years)
*
Argentina, Bangladesh, Colombia, Kenya, Mexico, Nigeria
Champion
57 Manufacturing
Industries 2025
Automotive – Passenger Vehicles, 2/3 Wheelers, HCVs (2 of 2)
Policy Regime Ÿ Set up scrap centers and incentivize scrapping possibly on a PPP model
Ÿ Expedite implementation of inland waterways policy to facilitate automotive

Cost logistics; Plan multimodal transportation network to ensure connectivity between
auto hubs and waterways
Champion
58 Manufacturing
Industries 2025
Cement
Cement – Sectoral Snapshot and Potential
Direct
Employment to
nd
2 Largest 1.5% 150,000
producer in Contribution to & Indirect
the world India’s GDP Employment to
500,000
people
7% 6.7% USD 3 bn
CAGR of FDI inflow to
Share in global
Production over sector April 2000
production
FY07-15 – Dec 2015
Source – India Brand Equity Foundation; International Journal of Emerging Research in Management &Technology
Champion
60 Manufacturing
Industries 2025
Cement - SWOT
• Rapid technological upgradation and vibrant • Fragmented regional players with weak economies
growth during the last two decades of scale
• Significant contribution towards clean • Relatively higher cost of capital in India.
environment (consumes 75% of the Fly Ash • Poor raw material linkages (coal, limestone, etc.)and
recycled in the country, and also several other supporting infrastructure
hazardous wastes like blast furnace slag, used • Demand-supply gap; overcapacity
tyres, etc.)
• Continuous process industry vulnerable to unreliable
• Easy availability of low cost skilled labor grid supply
• Upcoming infrastructure projects by GoI • Demand volatility

(Housing For All scheme by 2022, Smart • Increasing pressures w.r.t. environmental issues
cities, National and State Highways, etc.) and policies requiring speedy compliance with
• Liberalization of FDI caps in user sectors is inadequate transition time
expected to surge demand for cement in the • Increasing imports from neighboring countries
coming years
• Entry of multinational companies, leading to
new technologies, improved efficiency and
access to global value chains
Champion
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Industries 2025
Cement – Recommendations ( 1 of 2)
Alternative Fuels and Materials:
Ÿ Encourage use of AFR as co-processing in cement Kilns for sustainable solution for
waste management
Ÿ Introduce “Polluter to Pay” concept.
Ÿ Single Window permits should be given
Government /Infra Projects (Roads, Buildings etc.):
Ÿ Encourage mineral resource optimization and reduce CO2 emissions by incentivizing
use of green cements - PPC (fly ash), PSC (slag), Composite Cement and use of
recycled aggregates
Environment: Emission Norms: GSR No: 496 (E) dt.09.05.16 & GSR No: 497 (E) 10.05.16
Policy Regime Ÿ Monitoring Protocol - Day average to be considered
Ÿ Time for implementation – Relaxation till March 2019 (Current timeline is March 31,
2017) as India has no experience in required NOX emission control technologies
Ÿ e.g. risk associated with Ammonia transportation and handling
Ÿ Government procurement
Ÿ Missions / programmes such as Housing for all, Smart Cities, Industrial Corridors,
Gram Sadak Yojana (PMGSY) etc. to be undertaken on basis of Life Cycle Cost of
Ownership (TCO1)
Ÿ Incentivize manufacturers to develop products that have pre-defined targets for
reduction in emissions
Ÿ Create WTO compatible norms to check dumping of cement into India
Champion
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Industries 2025
Cement – Recommendations (2 of 2)
Logistics
Ÿ Expedite implementation of the Inland waterways bill / multi-modal system
Ÿ Rail : Make Rail freight a viable mode for transportation - Introduce performance
parameters for railways ; incentivize efficiency; create Cement freight corridors
Ÿ Incentivize Mechanization of material handling to improve turn around time and to
reduce congestion of high density good sheds
Cost
Ÿ To facilitate better turnaround time and lower transaction costs incurred by way of
high demurrage, improve basic infrastructure like approach road to siding, proper
platform with covered shed, water & toilet facilities for labour.
Ÿ Ensure dedicated wagon availability
Ÿ Automatic Transfer of mining leases to facilitate Mergers and Acquisitions
Champion
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Industries 2025
Chemicals
Chemicals – Sectoral Snapshot and Potential
th
6 Largest 2% Sector’s 100%
FDI allowed
Globally Contribution to
under automatic
by production GDP
route
5+ Million 15% Sector’s 6.57%

employment Contribution to of total FDI captured
generated by Manufacturing by the sector during
sector GDP April-Dec 2015
Champion
65 Manufacturing
Industries 2025
Chemicals - SWOT
• Increased positioning as global manufacturing hub • Lack of world class facilities and lower
such as dyes, APIs and other specialty chemicals. scale of operations have reduced the
• Constitute ~5.4% of India’s total exports efficiency and have rendered lower
• Regulations such as 100% FDI, PCPIRs bargaining power for sourcing feedstock
• Licensing requirements removed except in the case • Limited technological bias/ R&D of
of hazardous chemicals domestic players
• Double digit growth likely in major end-use • Competition from Southeast Asian
segments such as Auto, Packaging, E&E, countries in chemical production as well as
Construction and Apparels end segment manufacturing such as E&E,
• Low per capita consumption for segments such as Auto and apparels
plastics (1/3rd developing countries) and Agro • Need to ensure high EHS standards
Chemicals (0.6 kg/ha as against global average of 3 conformance
kg/ha)
• Alliances and partnerships to drive scale
• Emphasis on product innovation, brand building and
environmental friendliness driving shifts in industry
PCPIR – Petroleum, Chemical and Petro-Chemical Investment Region
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Industries 2025
Chemicals – Overall (1 of 2)
Ÿ Clear 3-5 year roadmap for regulatory regime especially for Environment, Health and
Safety norms
Ÿ Develop a national chemicals inventory to create a comprehensive database on the
capabilities, properties, classification, regulatory status and safety aspects of
chemicals being produced in India as a single point of reference
Policy Regime
Ÿ Create single window mechanism for Chemicals Industry for dealing with all Chemical
related issues / regulations with time bound and automated responses
Ÿ Lay down standards in conformance to global standards and ensure mutual

recognition
Ÿ Commission a National Feedstock Research Mission Programme for identifying

alternate sources of feedstock like coal, biomass etc.
Technology Ÿ Promote co-development of end use applications and tax incentives for application
R&D investments and increase industry linkages with academic institutions ; create
National Chemicals Laboratories co-located in Chemical clusters
Champion
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Industries 2025
Chemicals – Overall (2 of 2)
Ÿ Raw Material Security
Ÿ To maximize potential of PCPIR, MoPNG to ensure that requirements of potential
downstream units committing to long term offtake are ascertained before
project commissioning
Ÿ GoI to enter into bilateral strategic relationships for securing supply of feedstock
with resource rich countries (Iran, Mozambique, Myanmar) e.g. setting up of
reverse SEZs.
Cost / Infra Ÿ Ethanol mission – Incentivize / Credits for green Ethanol production
Ÿ Need for uninterrupted power supply as these are Continuous Process Industries (CPI);
Reinstatement of power trading and facilities of net energy metering (NEM) services
Ÿ Fast-track implementation of the National Pipeline Grid
Ÿ Accelerated depreciation for renewable energy investment
Champion
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Industries 2025
Chemicals – Construction Chemicals
Ÿ Public infrastructure projects and Building Code should be based on TCO1 as
opposed to L1; TCO 1 (performance parameters) to be inclusive of sustainability,
safety, durability, energy efficiency and water efficiency, corrosion resistance etc.
Ÿ Building scale through - Housing for all, Smart Cities, Gram Sadak Yojana, National
Highway Programme, Industrial Corridors etc. Ensure GoI strategic initiatives such as
Smart Cities operate based on world class standards
Policy Regime
Ÿ Incentivise green buildings and other environmentally superior standards by offering
rebates/incentives to encourage adoption.
Ÿ IRDA to mandate lower premium based on performance parameters - to be
inclusive of sustainability, energy efficiency and water efficiency, corrosion
resistance etc.
Ÿ Actively evaluate and mandate phase out of Alkylphenol Ethoxylates(APEO) based
technologies and other polluting/ harmful chemicals banned in other emerging
geographies to avoid adverse environmental impact
Manpower Ÿ Appropriate training of personnel to reduce TCO - Total Cost of Ownership
Champion
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Industries 2025
Chemicals – Agro Chemicals and Intermediates
Ÿ Expedite implementation of a science-based regulatory framework for safe nutritional
security in the country.
Ÿ Time-bound and e-enabled regulatory clearances for registration of agro-chemicals
Ÿ Stronger IP enforcement to curb counterfeiting

Policy Regime
Ÿ 5 X 5 ExportMarket Push (5 markets*, 5 year plan) –evolve an integrated export-
oriented approach comprising
Ÿ Createa bilateral technical assistance programme for enhancing agricultural
output
Ÿ Simplified registration norms for pesticides exports and increased scope of
regulations to include all types of pesticides (including bio-pesticides)
Technology Ÿ Create a digitized National Soil Map linked with the Soil Health Card Scheme
Manpower Ÿ Create vocational training programmes for Agronomy related disciplines
*
Africa, South / SE Asia
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Industries 2025
Chemicals – Other Performance Chemicals
Ÿ Dedicated R&D outlay to promote indigenous development of end use applications
Technology and encourage industry-institute linkages for enhancing performance parameters
Ÿ Create partnerships with user industries for co-development of applications
Ÿ Link existing schemes like Atal Tinkering labs with science familiarization initiatives
Manpower
for promotion of science
*
Ÿ 5 X 5 ExportMarket Push (5 markets , 5 year plan) –evolve an integrated export-oriented
approach comprising
Policy Regime
Ÿ setting up of India Performance Chemical Showcase as Government –supported
permanent display-cum-tech centre for demo, training and applications
Ÿ Commercial missions to be integrated with KPIs
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Industries 2025
Chemicals – Basic Elastomers and Polymers
Ÿ Dedicated plastic processing parks as export hubs with shared infrastructure
alongside PCPIRs
Ÿ Enforcement of existing mandates / legislations like “Edible Oil Packaging Order”
Ÿ Building Code should be based on TCO1 as opposed to L1; TCO 1(performance

Policy Regime parameters) to be inclusive of sustainability, safety, durability, energy efficiency
and water efficiency, corrosion resistance etc.
Ÿ Encourage resource-saving measures like energy-efficient building codes using
plastic profiles in buildings, etc.
Ÿ Encourage plasticulture* applications for water / fertilizer-saving in agriculture, etc.
Ÿ Green credit system linked to a tax credit for fully recyclable laminates, conforming to
BIS standards
*
Plasticulture refers to the practice of using plastic materials in agricultural applications
Champion
72 Manufacturing
Industries 2025
Engineering
Engineering – Sectoral Snapshot and Potential
*
2 % Sector’s 100% FDI
allowed under
Contribution
automatic
to GDP
route
* 6**%
9 Million 12 % Sector’s of total FDI captured
employment Contribution to
by the sector
generated by Manufacturing
during April -
sector GDP
Dec 2015
*
w.r.t Capital Goods Sector
**
Source: DIPP
Champion
74 Manufacturing
Industries 2025
Engineering - SWOT
• Cost competitive technology development • Low productivity and quality consistency

capability • Lack of focused skill development
• Pool of engineering talent • Legacy / obsolete labor laws
• Supportive / Conducive policy framework • Lack of standards
• Component and raw material sourcing ecosystem • Limited investment by domestic manufacturers
in existence in innovation and R&D
• Vibrant and innovative MSMEs
• Export potential with Middle East, Africa, Latin • Low cost imports and lack of regulation to govern
America, South / SE Asia and CIS/Russia sub-standard imports
• Govt thrust on infrastructure development, e.g. • Increasing dependence on US and Europe for
Industrial Corridors, Smart Cities, Housing for All, exports and technology(without commitments on
Make in India, PMGSY, NHDP etc. technology transfer)
• Demand shifting towards efficiency-enhancing
parameters, automation
Champion
75 Manufacturing
Industries 2025
Engineering – Overall
Ÿ 5 X 5 ExportMarket Push (5 markets*, 5 year plan) –evolve an integrated export-oriented
approach comprising
Ÿ setting up of India Engineering Showcase as Government –supported permanent
display-cum-tech centre for demo, training and on-site tech development
Ÿ Portal
Policy Regime Ÿ Purchase equipment through indirect barter and/or Indian Rupee form while
negotiating trade agreements with countries where mutually acceptable (e.g Iran,
Myanmar) or with whom trade balance is negative.
Ÿ Provide financing at LIBOR rate to facilitate overseas acquisitions of distressed assets,
thus enabling market access, leveraging of existing brand and access to technology
Ÿ Preference to firms manufacturing in India for projects funded by loans originating from
India
*Africa/East Africa; South East Asia; CIS/Russia; Latin America; Middle East
Champion
76 Manufacturing
Industries 2025
Engineering – Machine Tools (MT)
Ÿ Plug and Play infrastructure / ready to run parks with shared services, infrastructure eg.
Cost Testing labs etc. to foster self-contained eco-systems
Ÿ Create Machine Tool clusters in proximity to engineering and automotive industry,

Policy Regime
link with Industrial Corridors
Ÿ Provide TUF to promote industry to evolve from low precision manufacturers to high
precision manufacturing to compete on global scale
Ÿ Defense / Railway sectors to be encouraged to enter into 3-5 year development contracts
Technology with MT companies and to provide seed capital to enable risk sharing and foster indigenous
technology development
Ÿ Create MT Technology Co-Development centres in technical Institutes near existing
machine tool clusters
Champion
77 Manufacturing
Industries 2025
Engineering – Pumps and Valves
Ÿ Introduce Energy Efficiency cum Emissions Star Rating (E3SR) for pumps
Ÿ Aggregate procurement and distribution through– EESL type mechanism for

proliferation of solar pumps
Policy Regime
Ÿ Government to introduce TCO1 for procurement vs L1 at present especially for
Smart Cities initiative
Ÿ Mutual recognition of international standards including for government contracts also
Ÿ Develop linkages with key user industries and promote co-development e.g. with oil and
gas industry (Spec design that define product design, come from EPC players, need to be
Technology aligned with them for better access and products)
Ÿ Create Technology Co-Development facilities in Technical Institutes for R&D in Smart
Control Systems
Champion
78 Manufacturing
Industries 2025
Engineering – Solar PV (1 of 2)
Ÿ Market development by setting up Solar (Product) Haats based on Star rated -EESL type
model
Ÿ Expanding the bandwidth of NCEF (National Clean Energy Fund) from present use for
developing renewable energy projects to incentivize polysilicon feedstock
manufacturers, incentivize solar wafers / ingots and cell manufacturers and to introduce
export credits to promote solar equipment export
Ÿ Create a special focus programme under NCEF for solar start-ups
Policy Regime Ÿ Interlinking Rooftop Programme : Allow integration of solar-powered household rooftops
with local grid for enabling captive generation, consumption and distribution to the general
grid; integrated with Smart Grids
Ÿ Creation of solar manufacturing hubs/cluster thus uniting the complete supply chain into
one ecosystem
Ÿ Setting up of solar PV testing centres for design qualification and type approval, corrosion
testing, performance testing, safety qualification, potential-induced degradation,
transportation testing, efficiency, Electromagnetic Interference (EMI), and Electromagnetic
Compatibility (EMC) testing of PV convertors
A ‘Haat’ is a retail marketplace

- EESL - Energy Efficiency Services Limited
Champion
79 Manufacturing
Industries 2025
Engineering – Solar PV (2 of 2)
Ÿ Propagate wasteland usage for setting up of solar power generating and storage systems
Ÿ Establish sets of standards for different types of modules – rooftop and grid, covering all
technologies, at par with international levels:
Ÿ Validate with kFW, IREDA, Fraunhofer who have experience in ratifying modules
Ÿ Consolidate standards from Germany, US, Japan, India, etc.
Ÿ Standards for cells and modules for India
Policy Regime
Ÿ Programmes to drive end use applications of Solar PV
Ÿ Net-metering to allow industries to set up solar plants in remote locations and
electricity trading / offset of captive consumption
Ÿ Create a grid connected solar powered EV charging network in PPP mode ; embed in
Smart City modelling; Streamline EV interactions with Utilities
Ÿ Aggregate procurement and distribution through– EESL type mechanism for
proliferation of solar pumps
Ÿ Continuance and segment expansion of –EESL model to include Solar powered LEDs
Ÿ Dedicated R&D outlay to promote indigenous development of PV Cells and encourage

Technology
industry institutes linkages for enhancing performance parameters
Champion
80 Manufacturing
Industries 2025
Engineering –Pressure Vessels
Policy Regime Ÿ Regulatory framework instituted by Central Boiler Board to be aligned with ASME which
is a universally recognized gold standard for industry. Will facilitate exports.
Manpower Ÿ Encourage inspection via certified , trained professionals from third party companies vs
just Government
(1)
Technology Ÿ Co-development / encouraging local creation of specialized steel
1 Most of the raw materials suppliers are located in Europe, Korea and Japan being special steel i.e. not available in India. The shipment cost is USD 100-150
PMT which is 10% of total cost of CS Plates and 6% of Low Alloy Steel Plates i.e. it is additional input cost for us. Most of our overseas competitors are located
in these countries only i.e. their freight cost is negligible.
Champion
81 Manufacturing
Industries 2025
ESDM
ESDM – Sectoral Snapshot and Potential
100% FDI
2% Contribution allowed under
to global 2% Sector’s
automatic route;
production Contribution
sector delicensed
~
( USD 31 Billion) to GDP barring strategic
electronics
3.3 Million 12% Sector’s 3.3%

Contribution to of total FDI
employment
Manufacturing GDP captured by ICTE
generated by sector
Sector in 2014-15
Champion
83 Manufacturing
Industries 2025
ESDM - SWOT
• Presence of appreciable level of Electronic • Diminishing but still existing procedural

Manufacturing Services (EMS) industry. complexities and policy issues
• Availability of skilled manpower (at relatively • Technological inadequacy.
lower cost). • Poor R&D facilities and perceived weakness of
the IPR regime / enforcement.
• Lack of domestic semiconductor Fabrication
• ITA-1
• Rising manufacturing costs in competing • Established Manufacturing Ecosystem in China.

geographies. • Other emerging manufacturing hubs in APAC like
• Declining product life cycle, thus significant increase Vietnam.
in frequency of design and product development. • Weak component eco-system and supply chain
• Government Policies - MSIPS, EMCs, etc. for raw materials.
• Significant local demand (USD 278.2 billion by 2020)
and emerging African and Middle-East market.

Champion
84 Manufacturing
Industries 2025
ESDM - Overall
Cost Ÿ Disbursal of subsidies / grants to be linked with value addition / innovation potential.
Compensation of disabilities from a value added in country perspective either through
direct tax transfer or though production subsidy
Manpower Ÿ Build capabilities in component integration and contract manufacturing for large scale
manufacturers based in India
Policy Regime Ÿ Correction of Inverted Duty at Tier-II and Parity of Domestic Sales from EOU/SEZs with
manufacturers in the DTA for tier 1 products
Ÿ Soft bonded IT unit (SBIT ) and virtual SEZ and Physical exports benefits of Domestic
Tariff Area (DTA) Sales of Zero duty products without positive net foreign exchange (NFE)
condition
Ÿ Make budget provision for extending financial incentives as provided for under MSIPS to
enable sufficient scale of projects to be supported
Ÿ Create a Phased Manufacturing Programme for the complete value chain with
simultaneous development of component eco-system

Champion
85 Manufacturing
Industries 2025
ESDM – Mobile Phones
Policy Regime Ÿ Differential rates must continue even in the GST regime. Mobile phones to be classified
as a merit good.
Ÿ Roadmap for progressively incentivizing component/parts like charger/adapter,
mechanicals, display and PCB should be shared with investors in advance and delinked
from the Union Budgets. This would help in planning / phasing of the investments.
Ÿ Negotiate global protocol for FRAND (fair, reasonable and non-discriminatory) to curb
royalty stacking of Standard Essential Patents (SEPs)
Ÿ EESL mode for digital inclusion, link to Jan Dhan Yojana and digital India programme
Champion
86 Manufacturing
Industries 2025
ESDM – Printed Circuit Boards and Sub-Assemblies
Policy Ÿ Production subsidy is towards partly mitigation of the disabilities faced by manufacturers
in India, its applicability should extend to all existing and new investments including
Electronics manufacturing services (EMS).
Technology Ÿ Atal innovation centers to be leveraged to foster Original Design Manufacturing
capabilities for PCBs and developing manufacturing capabilities particularly on
technologies such as Surface Mounted Technologies (SMT) and tooling
Champion
87 Manufacturing
Industries 2025
ESDM - Conventional Lighting and LED lighting
Ÿ In bulk procurement tenders (Central and State Government) to mandate adherence to
PMA provision for local content
Ÿ Continuance and segment expansion of–EESL model to include Solar powered LEDs
Policy Ÿ Need for laying down Standards for LED Lighting in conformance to global standards
Ÿ Ensure uniform rate of taxation across the value chain
Champion
88 Manufacturing
Industries 2025
PHARMA
Pharma – Sectoral Snapshot and Potential
10% contribution 2X Growth

to global expected
pharmaceutical in the next
industry in 10 years
terms of volume
# 1Globally 20% 5% FDI

filing of of total FDIs into
Global exports
Drug Master India from April ‘00
in generics
Files's (DMF's) to September ‘15
Source: IBEF, DIPPFDI – Foreign Direct Investment

Champion
90 Manufacturing
Industries 2025
Pharma – SWOT
• Low cost of manufacturing • High cost of finance and power

• Access to highly trained talent pool • Highly regulated on the pricing front
• Ready access to market through a large • APIs require high capital infrastructure investment
distribution network • Long gestation period; cumbersome approval
process for generics
• Unable to reach economies of scale due to
absence of large scale of operations
• Increasing medical insurance coverage and • Lack of innovation in the value chain
penetration of rural healthcare • Inability to manage black market and counterfeits
• Changing lifestyles with greater access to • Cost-competitive manufacturing locations
information driving awareness • Dependence on imports for penicillin, which is a
• Increasing global demand for generics driving base drug (APIs)
investments
• Growing population and ageing globally
• Leverage FTA with Japan on Pharma
Champion
91 Manufacturing
Industries 2025
Pharma – Active Pharma Ingredients, Bulk Drugs, Generics (1 of 2)
Policy Regime Ÿ Single window clearance for setting up pharma units, (Currently, setting up a new
pharmaceutical manufacturing plant (formulations and APIs) requires around 20-25
approvals [Eg: Chief Controller Of Explosives (India) [CCOE], Environmental Clearance,
Factory plan approval, Labour license, Consent to establish, State IDC plan approval,
Consent to operate] from around 10-12 departments of state and central governments.
Time period required for getting all the approvals before the actual start of construction is
around 24- 36 months for a mid-size to large-size pharmaceutical firm.)
Ÿ Blanket ban by MoEF on GIDC Ankleshwar to be lifted
Ÿ A unified ministry could end the policy fragmentation as there are various departments
under different ministries that are currently dealing with pharmaceutical regulations and
approvals. Will also help strengthen regulatory capacity to streamline the drug review.
Ÿ Adopt a cluster-based approach with shared facilities, especially environmental, water
treatment, etc. could enhance local manufacturing of APIs
Ÿ Create Common Effluent Treatment Plants (CETP) facilities near the existing industrial
estates and allow for acceptance of neutralized effluent to be processed by CETPs (avoid
duplication of effluent treatment activity)
Champion
92 Manufacturing
Industries 2025
Pharma – Active Pharma Ingredients, Bulk Drugs, Generics (2 of 2)
Policy Regime Ÿ Purview of pollution authorities to be restricted to monitoring the effluent generated by
the factory. (not on type of product, quantity and product mix)
Ÿ Stronger IP enforcement to ensure control of counterfeit drugs
Ÿ Focus Engagement Building with Japan under aegis of bilateral CEPA – due to
government's policy disposition to encourage prescription of generic medicines so as to
bring down the costs of healthcare for an aging population.
Technology Ÿ Create co-development facilities in R&D Institutes for Novel Chemical Entities (NCE)
Cost Ÿ Need for uninterrupted, good quality power supply as these are Continuous Process
Industries (CPI); Reinstatement of power trading and facilities of net energy metering
(NEM) services
Champion
93 Manufacturing
Industries 2025
STEEL
Steel – Sectoral Snapshot and Potential
3rd Largest 7.3% CAGR

Globally by 2% Sector’s
of domestic
production capacity Contribution
demand between
(110 million to GDP
1991 – 2016
tonnes)
600,000 6.7%
employment Sector’s
100% FDI
generated by allowed under
Contribution to
sector automatic route
Industrial GDP
Source: IBEF; Joint Plant Committee

FDI – Foreign Direct Investment
Champion
95 Manufacturing
Industries 2025
Steel – SWOT
• Availability of high-grade iron ore domestically; • Cumbersome procedures/clearance requirements

huge reserves of natural resources • Issues in acquiring land to set up steel plants
• Skilled labour • Obsolete technologies and production processes
• Integrated steel plants enabling control of form amongst segments of industry
and chemistry • High dependence on imported coal; vulnerable to
• Efficient re-utilisation of raw material global price fluctuations
• Existence of some world-class companies • Inadequate efforts to develop R&D
• For every unit increase in steel output, economy • Capital intensive industry; long gestation for
has a multiplier effect of 5X greenfield projects
• Poor security of raw material despite reserves
• India bright spot in global market • Severe competition from China and other FTA
• Demand being driven by infrastructure projects, countries and oversupply of steel in the global
automotive industry, rural demand market at present
• Significant scope for reducing costs by improving • Social tensions & environmental concerns
efficiency levels • Rising trend in wage rates
• Low per capita consumption of steel • Insufficient investment in transportation network
• Emerging Alternative materials
Champion
96 Manufacturing
Industries 2025
Steel – Flats, Longs and Forgings and Castings (1 of 3)
Policy Regime Ÿ Coal & Iron Ore blocks to be free of lien before being placed for auction, including a priori
forest and environmental clearances
Ÿ Programmes for propagating steel usage - Mandate usage to promote safer and more
sustainable structures thus reducing life cycle cost as well as provide for more durable
and earthquake resistant structures besides having a lower carbon footprint; Focus
interventions through Smart Cities, Housing for All, PMGSY, etc.; ensure domestic
purchase preference
Ÿ Performance-parameter based mandatory BIS certification for all steel products
Ÿ Create a steel logistics infrastructure fund from revenues collected through trade remedial
actions
Ÿ Expedite passage of the National Mineral Exploration Policy and ensure identification of
green field iron ore blocks – link to speedy auction
Ÿ Create a centre-state level project management group (PMG) for ensuring time bound
auction, land acquisition and approvals with a monthly review mechanism
Ÿ Policy for Scrappage of Steel to be introduced; fixed life depending on end-use; rely on
science; Waste to Wealth / Zero Effect
Ÿ Amend MMDR to allow for national e-auction model for Iron Ore with reserve price equal to
cost of mining + reasonable margin
Champion
97 Manufacturing
Industries 2025
Policy Regime Ÿ 5 X 5 Export Market Push (5 markets*, 5 year plan) –evolve an integrated export-oriented
approach comprising
Ÿ setting up of India Steel Product Showcase as Government –supported permanent
display-cum-tech centre for demo, training and on-site tech development
Ÿ Commercial missions to be integrated with KPIs linked to market share growth
Ÿ Revise Highway Code for usage of Slag
Ÿ Incentivize manufacturers to develop products that have pre-defined targets for reduction
in TCO and emission footprint
Ÿ Programmes for driving raw material efficiency - Mining of iron ore generates fines.
Pelletisation would lead to optimum utilization of this resource and low grade iron ore fines
Technology Ÿ Co-development / encouraging creation of specialized steels and novel materials
Ÿ Collaborative R&D to identify new applications

Ÿ Undertake feasibility assessment of technologies for ecologically sustainable sub-
surface iron ore mining
*
Middle East, USA, Iran, Germany, Italy
Champion
98 Manufacturing
Industries 2025
Cost Ÿ Logistics
1
Ÿ Reduce logistics costs by adopting a multi-modal network approach
Ÿ Rail : Reduction of period of applicability and % for busy season surcharge (Presently
15% surcharge is applicable for 9 months)
Ÿ Rail : Government to regulate freight rates in mining belts
Ÿ Rail : Reduction of Iron Ore class from 165 to 145 (i.e. coal)
Ÿ Liberalized Wagon investment scheme and specialized freight train operators
scheme to be extended to coal and iron
Ÿ Create network of Slurry pipelines
Ÿ Waiver of clean energy cess on coking coal (as is an input only for steel production not
power)
Ÿ Create a task force for developing Jharia Coking Coal block for coke from India
Ÿ Fast-track resettlement and rehabilitation of local population
Ÿ PPP model for developing coal block
Ÿ Support to be provided for setting up of coal washeries to reduce waste
Ÿ Recasting of debt for the Steel sector
Ÿ Waste heat recovery through gas generation by utilization of waste be used as a renewable
purchase obligation (RPO)
1 Better port connectivity and coastal shipping including Sagar Mala Waterway Transport Scheme of the Government. to reduce transportation cost per km.
Steel production centres from East to consumption centers in South and North; South coastal areas from Haldia, Dhamra, Vizag, Madras and Tuticorin can be
easily connected to Western coast in Mumbai and the northern region can be covered through Dedicated Freight Corridor, National Waterways-1 from Haldia
to Varanasi alongwith three corridors (Tori-Shivpuri- Kathotia in Jharkhand; Bhupdeopur-Korichhaapar in Chhattisgarh; and Barpali-Jharsuguda rail line in
Odisha) to bring in better efficiencies.
Champion
99 Manufacturing
Industries 2025
Steel – SWOT
• Only country with complete value chain in cotton • Indian garmenting units lack scale and are
and synthetics other than China 20%size of largest global peers
• Strong raw material base- Largest producer of • 15% cost disadvantage due to externalities
cotton, Jute, MMF (2nd), Silk (2nd) etc. globally –power, logistics, finance
• Installed capacity of 50 million spindles, which is • Very high time-to-market in a time-sensitive
20% of the global spindle capacity. apparel market
• Largest installed capacities of spinning and • Low labour productivity
weaving globally • Lack of international market access in key
markets - EU, USA
• Lack of front-end Indian brands
• Lack of innovation and design
• Growing and aspirational domestic market • Trade blocs / preferential trading arrangements
• China losing market share creating potential redefining landscape
target market worth USD 280+ billion • Intense competition from emerging economies /
• Export product mix shifting to MMF apparel hubs e.g. Bangladesh, Vietnam, Ethiopia
• Impetus to apparel manufacturing through INR • Strong resurgence of manufacturing in USA
6,000 crore package • Sharp and unpredictable wage hikes
• Deteriorating indigenous fiber quality
Champion
100 Manufacturing
Industries 2025
TEXTILES
Textiles – Sectoral Snapshot and Potential
>6% Sector’s 2nd Largest

exporter of
Contribution
textiles, apparel and
to GDP
made-ups globally
5% 49 Million 50 Million
of Global Share people additional
of exports employed jobs by 2025
Source: Ministry of Textiles
Champion
102 Manufacturing
Industries 2025
Textiles and Apparel (1 of 2)
Policy Regime Ÿ India to be developed as a global textile and apparel manufacturing hub
Ÿ Develop Apparel Industrial Parks alongside industrial corridors (near Gujarat,
Karnataka, Maharashtra, Rajasthan, Punjab, Andhra Pradesh /Telangana) with shared
infrastructure, e.g. Common Effluent Treatment Plants (CETP), dormitory housing,
training and educational institutes, warehouses, design and testing centres etc. and
supported by plug and play manufacturing facilities (in PPP / GOCO* mode)
Ÿ Foster hub-and-spoke model with weaving, processing and spinning facilities
(spokes) linked with Apparel Industrial Parks (hubs)
Ÿ Provide time-bound compensation of disabilities on account of finance, power, logistics
costs through WTO-compatible production subsidy based on value addition
Ÿ 7 X 5 Export Market Push (7 markets*, 5 year plan) –evolve an integrated export-oriented
approach comprising
Ÿ setting up of Indian Textiles Showcase as Government –supported permanent display-
cum-design centres
*
Government Owned, Company Operated
**
EU, UK, USA, Japan, Australia, Latin America, CIS
Champion
103 Manufacturing
Industries 2025
Textiles (2 of 2)
Cost Ÿ Modify ATUFs to allow for enhanced support to the capital intensive processing sector -
15% of capital invested from the current level of 10%
Ÿ Waive anti-dumping duty on MMF imports for value added exports
Port Infrastructure improvement
Ÿ Multi-modal transportation network between clusters and ports
Ÿ Ensure time-to-ship is within T+7 days from key T&A clusters
Ÿ Ensure single day transit into Bangladesh by accelerating integrated check post at
Petropole.
Ÿ Develop other entry / exit points to / fro Bangladesh(SonaMasjid, Hilli Land)
Technology Ÿ Create an Advanced Textiles Technology Programme (ATTP) in PPP mode with leading
global universities for
Ÿ Collaborative research
Ÿ Faculty and Student Exchanges
Ÿ Industry-academia partnerships
Manpower Ÿ Extend benefits of special package given to Apparel to Textiles and Made-ups
Ÿ Ensure predictability of wage growth
Ÿ Allow women to work in night shifts.
Champion
104 Manufacturing
Industries 2025
Annexure 2
Building Firm Level Competitiveness
w w w. c i i m i s s i o n m f g . c o m
Distilling the Secret Sauce of Manufacturing Excellence
The CII Manufacturing Performance of Building on these

Council undertook 32,000 companies insights, CII’s Centers
a detailed exercise was analyzed over a of Excellence and
to distill the ‘recipe 10-year period using specialized services
of success’ of ROCE as a primary teams were brought
manufacturing measure with follow- on board to help
companies in India on conversations build a framework
over the long term. with CEOs of the that would help
top performing gauge a company’s
companies to gain competitiveness and
deeper insights. identify their weaker
links.
Champion
106 Manufacturing
Industries 2025
… creating a unique ‘Recipe for Excellence’ tool . . .
• Easy to use • Available 24 x 7, across all internet enabled platforms • Geography agnostic
Log onto www.ciimissionmfg.com
Champion
107 Manufacturing
Industries 2025
… that assesses firm-level competitiveness ...
across 6 functional parameters that are core to an organization…
Operations Human Resources Marketing

and Leadership
Analyze Result Analyze Result Analyze Result
Environment, Sustainability Research and Supply Chain

and Governance Development Management
Analyze Result Analyze Result Analyze Result
Champion
108 Manufacturing
Industries 2025
…by completing an objective, easy to fill questionnaire…
Human Resource Strategy

1. Does your organization have a defined process for gathering and analysing development in the market place while
formulating the HR Strategy
Never Yes to a limited extent based on few consultants inputs
Yes there is an Internal System in place which captures Yes there is a system to gather multi stakeholders inputs
various Macro trends pertaining to HR similar to PESTLE, 5 Force and corporate Foresighting
2. Has your organization defined risk mitigation or control strategy with respect to human capital risk ?
Not Defined Informally Defined
Yes it is Formally Defined and a process exists Yes there is a ERM (Enterprises Risk management ) frame work
for HR and Risks are categorized and mitigated.
3. Does your organization have metrics in place to monitor process periodically ?
Never Occasionally
Regularly Always
4. Does your organization communicate HR strategy?
Champion
109 Manufacturing
Industries 2025
…to identify a company’s overall competitiveness
…and in relation to its industry peers…
Where do you Stand ?
All
manufacturing
26 You
Needs Improvement Excellent
Analyze in More Detail
Champion
110 Manufacturing
Industries 2025
…at a functional level…
Marketing Toolkit
75
50
25
-25
Leadership & Marketing Product
Marketing Strategy Precesses Development
O is median
Champion
111 Manufacturing
Industries 2025
…or across key functions …
Operations
90
72
54
Marketing 36
Environment,
Sustainability and
18 Governance
Human Supply
Resource Chain
Leadership Management
Research and Development

Ideal (100) Average You
Champion
112 Manufacturing
Industries 2025
… Revealing some valuable insights …
1. A unit’s 2. Where the unit stands w.r.t. 3. How far the

weakest its industry peers and from unit is from
operational companies of similar size, ‘perfection’
link scale and employee strength
and guide a company on the path to achieving manufacturing excellence
Champion
113 Manufacturing
Industries 2025
… CII Centres of Excellence / specialised teams just a click away ..
Sohrabji Godrej
Green Business Centre
CII Technology / R&D team
Champion
114 Manufacturing
Industries 2025
Join the movement!
w w w. c i i m i s s i o n m f g . c o m
Champion
115 Manufacturing
Industries 2025
Initiative Supported By
Champion
116 Manufacturing
Industries 2025
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry,
Government, and civil society, through advisory and consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's development process.
Founded in 1895, India's premier business association has over 8000 members, from the private as well as public sectors, including SMEs and MNCs, and
an indirect membership of over 200,000 enterprises from around 240 national and regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and
business opportunities for industry through a range of specialized services and strategic global linkages. It also provides a platform for consensus-
building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships with civil society
organizations carry forward corporate initiatives for integrated and inclusive development across diverse domains including affirmative action,
healthcare, education, livelihood, diversity management, skill development, empowerment of women, and water, to name a few.
The CII theme for 2016-17, Building National Competitiveness, emphasizes Industry’s role in partnering Government to accelerate competitiveness
across sectors, with sustained global competitiveness as the goal. The focus is on six key enablers: Human Development; Corporate Integrity and Good
Citizenship; Ease of Doing Business; Innovation and Technical Capability; Sustainability; and Integration with the World.
With 66 offices, including 9 Centres of Excellence, in India, and 9 overseas offices in Australia, Bahrain, China, Egypt, France, Germany, Singapore, UK, and
USA, as well as institutional partnerships with 320 counterpart organizations in 106 countries, CII serves as a reference point for Indian industry and the
international business community.

CII Champion Manufacturing Industries 2025

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CII Champion Manufacturing Industries 2025

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Champion Manufacturing

Sector and Industry level recommendations 40

Building Firm Level Competitiveness 105

Source : World Bank : 2015 figures

If we have to develop a balance between imports and exports, we

Economic activity generated by $1 of sector GDP

Retail trade 0.66

Other services, except… 0.63

Professional services 0.61

1. Figures are as per April 2014

Today Policy Firm-Level International 2025 Target

1947 - 2014 MAKE IN INDIA 2014

• State-led industrialization • Focus on local value addition, sustainable

STRATEGICALLY IDENTIFY SPECIFIC CHAMPION INDUSTRIES

Enhancing India’s soft power

1. Aerospace and Defense

IDENTIFICATION IDENTIFICATION OF CHAMPION

1. Aerospace and Defense

Availability/ Use of Industry Indian Market Contribution to the globe 30%

IDENTIFICATION IDENTIFICATION OF CHAMPION

1. Aerospace and Defense

• Aircraft Components and sub-systems • Valves and Pumps

• Electronic Capacitors, Resistors, Chokes, Coils, Transformers • Bulk drugs

Emerging Commercially Attractive

Source : Frost & Sullivan Analysis Moderate Commercially Attractive High

Sector Industry Sector Industry

Chemicals Basic Polymers and Elastomers Steel Forgings and Castings

Competitiveness : Make in India, Skill India, Digital India

Unleashing the Establishing the

Cost Scale & Market Share

Technology Platform Innovation

Policy Regime Sustenance

• IP & Global Standards • IP & Global Standards

• Skills Availability • Skills Availability • Skills Availability

• Transition to ‘Green’ and ‘Clean’

• Convergence of attention to national programmes / priorities

- Partnering for development of Industrial Corridors

• Conformance to global standards and quality

• Greater acceptability to external trade opportunities

• Greater value addition, particularly locally

• Increased inclination to hire formally

• Increased employability of workforce

Current -Business as Usual Future -Unleashed

India’s Share of Global India’s Share of Global

Employment generation Employment generation

Auto and Auto Components

Total 586 1140 1973

Employment* Business as Accelerated Growth

Chemicals4 5,000,000 6,000,000 7,000,000 2,000,000

India’s Share of Global India’s Share of Global

USD 200 Billion USD 500 Billion

01 The CII Manufacturing 02 Performance of 32,000 03 Building on these insights,

Needs Improvement Excellent HR/ Supply Chain

Research & Development

Through an Apex-level Inter-ministerial Annual update

Mode Participation Frequency

200,000 60% USD 38.322

Ÿ India to be developed as a global MRO hub

Ÿ Mandate indigenisation of spares by IAF / HAL to curb imports and encourage

Ÿ Create an Advanced Materials and Applications Programme (AMAP) to nurture and

Ÿ Mandate and enforce strict timelines from Acceptance of Necessity (AON) to

Ÿ Establish an Aerospace Technology and Skill Development Centre (ATSDC) in

6th Largest 7% 100%

19 Million 45% Sector’s 9%