Sector Reviews: Make In India
From Last couple of months one word is in news, MAKE IN INDIA. Correct Hmmmm…..I’d like to write somewhat on Make In India today. You’d listen a lot of information in the media about it. Don’t worry it is the mindset of Investors all over the world, to follow the media blindly. Hey I’m not against the media or social media.
But reality is that it’s also focused by mutual fund companies and launched new fund (NFO) recently. The intention of sharing this article is only only only for information purpose.
There is two major key area of this campaign One government is focusing on – infrastructure, railways, defense and smart cities- all provides incredible scope for the manufacturing space.
Two besides government spending in these areas, some of the key reforms – be it labour law or land acquisition, GST implementation, farm sector reforms, market linked pricing for petro products or opening up of FDI in key areas – all translate in to ease of doing business and attract higher investment activity in the manufacturing sectors.
The above two are directed towards ultimately government’s vision of 100 million jobs in the manufacturing space and ramping up the share of manufacturing in GDP to 25% by 2022 and so the campaign of Make In India! (source: fundsindia.com)
Focused Sectors :
# Automobile, Automobile Components
# Aviation, Biotechnology, Construction, Chemicals, Defense
# Electrical Machinery, Electronic System, Food Processing, IT & BPM,
# Leather, Media and Entertainment, Mining, Oil and Gas, Pharmaceutical, Ports,
# Railways, Renewable Energy, Space, Roads and Highways, Textile and Garments,
# Thermal Power, Tourism and Hospitality, Wellness.
Well I like one analysis by Birla Sun Life mutual fund ‘The stocks of manufacturing companies have given 20% CAGR return in last 10 year without any government primary involvement.’ So you can predict the future of this sector with government full involvement.
The Government of India initiative ‘Make In India’ is also followed by Indian companies and foreign investors. You can check the official Facebook page (3370274 likes) and Twitter page (297164 followers) of Make In India. You must like it and follow this pages for regular updates. You can also download more information on make in india here (brochure attached)
Finally my hope towards ‘Make In India’ is on it’s pinnacle level.