Thread by @AdityaD_Shah

India🇮🇳

From
🏦Manufacturing
🏦Infrastructure to
🏦Indigenisation of Defence Equipment

India is laying seeds for a massive transformation

India "Ka time aa gaya"
The next 20-30 years will belong to India

A thread🧵on the changes that are happening in the Indian Economy

Lets go👇

Global Growth:-

The IMF will downgraded its forecast for 2.9% global growth in 2023.

Growth projections for India will be at 6.5%
India is the fastest-growing economy in the world.
The domestic economy is strong
Manufacturing move to India will only add to upside

The Indian Economy

Favorable Demographics:-

The majority of India's population is young below 30 years of age

The share of India’s working population to the total population will reach its highest at 68.9% by 2030.

As this population works they will enhance the productivity

Clean up of the system:-

Over the last 5 years,The government has implemented
🏦GST
🏦Insolvency and Bankruptcy code
🏦Bring India's tax rates to the global system

All of this was part of cleaning up the system

India's Move to Digitalisation:-

🏦UPI
🏦Aadhar
🏦Strengthening of the banking system

All of this has meant Digital transactions have now increased from 4.4% of the GDP to 76.1% of the GDP.

This goes a long way in the formalization of the economy.

Source:-Morgan Stanley

Aadhar
UPI & now
Open Network for Digital Commerce(ONDC)

As ONDC comes to life It is yet another UPI moment(game changer) in e-commerce

A thread🧵on what is ONDC? How will it revolutionize e-commerce in India?

Manufacturing:-

China+1
This is basically a strategy in which companies avoid investing only in China and diversify their businesses to alternative destinations.

India's market share in world exports is continuing to expand rapidly.

This is expected to touch 4.5% by 2030.

Source:-Morgan Stanley

Government initiatives:-

The National Manufacturing Policy aims to raise manufacturing’s GDP share to 25% from 13% by 2025:-
🏦The “Make in India” campaign
🏦Production-Linked Incentive Scheme
🏦The start-up ecosystem

Some of the biggest companies in the world, including but not limited to General Electric, Siemens, HTC, Toshiba, and Boeing, are setting up manufacturing plants in India as a result of the “Make in India” policy

Something that has never happened before

Some Key Projects:-
📱Apple to manufacture 25% of iPhones from India by 2025
✈️Tatas are collaborating with Airbus for the manufacturing of C295 aircraft
✈️General Electric signed a contract to manufacture engines wil HAL
📱Foxconn semiconductor plant in Gujarat

Defense equipment

India Spends nearly 2 lakh crores on Defence Equipment.

Most of it was imported.

Due to the government's efforts over the last 5 years
60-75% of the purchase is being produced Locally

Big suppliers are setting up factories in India now

Source:-HDFC MF

Infrastructure:-

India spent $14 Trillion on infrastructure in the 75 years since its independence.

$7 trillion was in the last 9 years.

Another $7 Trillion will be spent in the next 9 years!

Big Spending is coming in!

Source-DSP MF

The Infra Spend is across:-
🛣️Road
🚆Railways
✈️Aviation

The government has its prime focus on improving instratucture

Roads:-

There has been an increase in the construction of National Highways (NHs)/roads over time, with 10,457 km of roads constructed in FY22 as compared to 6,061 km in FY16.

The ambition is to take the rate of daily highway construction in India to 100km per day

Dubbed India’s ‘highway revolution’,

Rapid highway construction is central to the country’s push to transform itself into a staggering US$5 trillion economy by 2025.

Railways:-

The capital expenditure on infrastructure in railways has received a tremendous boost since 2014.

It has seen a continuous increase in the last four years with Capex (B.E.) of ₹2.5 lakh crore in FY23, up by around 29 percent compared to the previous year

Major spending has been across:-
1. Track doubling
2. Rolling Stock
3. Electrification projects

Dedicated Freight Corridor:-

The 1724km Dedicated Freight movement corridor will help faster movement of goods.

This will help in faster movement of goods!

Metro push:-

Each Indian city and town has a large number of proposed new lines,

The following table lists out cities/towns with with serious proposals that could possibly materialize as light rail (Metrolite) and be built in the next 10 years.👇

Aviation push

UDAN( Ude Desh ka Aam Nagrik) Scheme:-
Under this scheme, the govt is trying to set up regional airports

The Budget has proposed to double the outlay for , UDAN, to ₹1,244 crore, from the current year’s budgetary estimates of ₹601 crore.

Making India an Aviation hub:-

Airlines are sensing the massive opportunity India has and have placed large orders:-

✈️Air India has 470 planes on order
✈️ Indigo has 300 planes on order
✈️Akasa Air is expected to place a three-digit order by the end of 2023

Conclusion:-

Nothing changes overnight in India

But, India is spending aggressively on

Manufacturing
Reforming the economy
Digitalizing the economy
Infrastructure

As all of these pieces come together slowly in the next 10 years.

India will do exceptionally well.

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