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“Global Automotive Supply chain Challenges & Opportunities– Inching Towards Aatmanirbhar Bharat” - Presentation - GASCO Con 2022 SN Panigrahi.pdf

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“Global Automotive Supply chain Challenges & Opportunities– Inching Towards Aatmanirbhar Bharat” - Presentation - GASCO Con 2022 SN Panigrahi.pdf

“Global Automotive Supply chain Challenges & Opportunities– Inching Towards Aatmanirbhar Bharat” Conference (GASCO Con) on Wednesday & Thursday, 9th & 10th November 2022.

"Global Automotive Supply chain Challenges : Integrating Global + Local Shifting to Glocal - A Move for Aatmanirbhar Bharat"

“Global Automotive Supply chain Challenges & Opportunities– Inching Towards Aatmanirbhar Bharat” Conference (GASCO Con) on Wednesday & Thursday, 9th & 10th November 2022.

"Global Automotive Supply chain Challenges : Integrating Global + Local Shifting to Glocal - A Move for Aatmanirbhar Bharat"

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“Global Automotive Supply chain Challenges & Opportunities– Inching Towards Aatmanirbhar Bharat” - Presentation - GASCO Con 2022 SN Panigrahi.pdf

  1. 1. GASCO Con 2022
  2. 2. Global Supply Chain advanced due to Globalization and Increasing Free Trade among Countries. Globalization undoubtedly has many Advantages & Benefits of Better Access and Integration of Supplies at Global Level. However, Globalization & Global Supply Chains are more Prone to Supply Chain Disruptions. COVID Pandemic’s impact on global trade and Supplies is so devastating that it has exposed the Fragility of the Supply Chain and proved to be a Real Test of Corporate Ingenuity, Resilience and Flexibility to face the Crisis. So, Businesses have started looking for Offshore to Nearshore and Local Sourcing. In this Presentation, Let’s Discuss on Concept of “Glocal” – a Combination of Global & Local, and how it embraces Global Mindset, Reach & Access, but also Accommodate & Promote the Values, Cultures, Ideals, Interests and Needs of the Local Businesses. GASCO Con 2022
  3. 3. 4 A supply chain is a Chain of Supplies - is the Network of all the individuals, organizations, resources, activities and technology involved in the Creation and Supply of a Product, from the Point of Source to the Point of Consumption through Series of Supplies with Value Creation at each Stage that is from Supplier to Manufacturer to Distributer to Wholesaler to Retailer and Eventually Delivery to the End User or Consumer.
  4. 4. 5 Supply Chain Management (SCM) can be defined as Management of the Supply Chains as an Integrated Process of Acquisition and Management of Flow of Supply of Goods and Services from the Point of Origin to the Point of Consumption and Delivering Further Value Added Output to the Next Level Point of Consumption (like from supplier to manufacturer to wholesaler to retailer and to final consumer) by Balancing Supply and Demand with Optimal Management of Resources with the objective of establishing relationships for Maximizing Value for Mutual Benefits on Economically, Socially and Environmentally Sustainable basis. (As defined by the Author SN Panigrahi in his Article “Value Insights into Supply Chain” Published in Aug’2010 issue of MMR – IIMM)
  5. 5. 6 Materials Flow Forward Logistics - Materials Movement – Supplier to Customer Reverse Logistics – Sales Returns : Customer to Supplier Information Flow Product Data, Descriptions & Pricing & Offer- Bills of Materials, Invoice Customer Enquiry / Order Information, Delivery Scheduling Financial Flow Credit Notes – Payments for Quality Claims & Damages Consideration for Materials Supply – Debit Notes – Late Fee for Release of Payments Due Value Flow Value Addition in Supply : Inputs to Production - Distribution Customer Feedbacks – Improvements - Relationships Risk Flow Demand, Supply, Price, Lead Time, etc Cash Flow Constraints, Inventory Financing & Delayed payment
  6. 6. Global Supply Chain advanced due to Globalization and Increasing Free Trade among Countries. In the economic context, Globalization refers to the Process Characterized by Liberalisation, Borderless Globe opens up new markets with Free Trade Flow of Capital & Financial Products, Investments, Goods, Services, Technology, Information and Human Capital across National Boarders with Increased Interaction, Integration and Interdependence among the Nations around the Globe to Foster Easy Access to Foreign Resources, better Exchange, Movement and Cooperation of Businesses, Organizations, and Countries to built Economic Partnerships for Mutual Benefit and Facilitate Common Good based on Competitive Advantage of each Participating Nations or Regions. GASCO Con 2022
  7. 7. Globalization enables access to Global Talent, Materials, and Products that were otherwise out of reach. Globalization can enrich Business Processes by offering companies a wider more Abundant Pool of Resources to pick from. Cross Boarder Information Flows may Promote Growth. Globalization Encompasses Growth on a Worldwide Scale. In the past few decades we have witnessed growing globalization as more countries and regions of the world become intertwined Politically, Culturally and Economically. GASCO Con 2022
  8. 8. Globalization evolved and advanced on the premises of basic concept of Comparative Advantage which is defined as Ability of a Country to Produce and Sell Goods and Services on an International Scale more Efficiently and Inexpensively than another. As Technology, Infrastructure, Transportation Systems, and Communication Systems, Economic, Political, and Cultural Exchanges have improved, competition among different countries has soared. Globalization leads to increased competition. Competition in global business environment occurs when different nations offer interchangeable services or products or other resources. National Competitiveness is a country’s ability to sustain and increase its share of international markets and at the same time to improve its people’s quality of life. Among governments, there is a growing tendency to experiment with various policies intended to promote national competitiveness—from efforts to manage exchange rates to new measures to manage trade to policies to relax antitrust. GASCO Con 2022
  9. 9. National Competitive Advantage is measured by a set of factors, policies, and institutions that determine a country's level of productivity and competitiveness. There are Four broad Attributes of a National Competitive Advantage : ❖ Factor Conditions (The Factors of Production, such as Natural Resources, Skilled Labor or Infrastructure); ❖ Demand Conditions ( The nature of home-market or Domestic Demand); ❖ Related and Supporting Industries (The presence or absence in the nation of supplier industries and other related industries that are internationally competitive); ❖ Firm Strategy, Structure, and Rivalry (The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry). GASCO Con 2022
  10. 10. According to prevailing thinking, Government Policies, Institutions, Infrastructure, Innovation, Technology Development & Absorption, Macro- Economic Stability, Health and Primary Education, Higher Education and Training, Market Size, Market Conditions & Efficiency, Labour Market Efficiency (Labour Cost), Financial & Capital Market, Interest Rates, Exchange Rates, Economies of Scale, Country’s overall Business Networks and Supporting Industries are the most potent determinants of competitiveness. It is a relative concept. It is an approximation of a country's ability to grow and to compete with other countries for human capital, investments, and other resources. GASCO Con 2022
  11. 11. 2. Multinational Corporations are Gaining Advantage showing their Mighty Power as a Result of Globalization. 4. Heavy Dumping of Products from Developed Countries – Trade Inflows far Exceeding Outflows. 6. Growing Inequality - Unbalanced & Uneven Development among Nations. 8. Globalization has failed to Protect Workers & Human Rights. 10. Trade Imbalance – Many Countries Fallen into Debt Trap – Imports Exceeding Exports. 1. Markets Opened-up – Captured by Advanced Economies. 3. Smaller Businesses are being faced with Constant Threat & Cop by Larger & Multinational Giants. 5. Traditional Products, Practices Cultures are slowly being Vanished. 7. Low-cost or Cheap Labor Marketplaces are being Exploited and Oppressed. 9. Disproportionate Increasing of the Unemployment Rate – Shift of Job Markets. 11. Environmental Depletion – Excess Exploitation of Natural Resources from Under-Developed & Developing Nations. 12. Trade Distortions (War, Pandemics, Unfair Trade Practices, Trade Barriers etc) may Disturb the Flow of Supplies. 13. Cyber Attacks, Information Leakage, National Security Threats – Conflicts between Nations – Terrorism. 14. Financial Instability due to Volatile Foreign Capital Flows and Threats to the Global Environment. 15. Compulsive Following of Certain Compliances Forcibly Imposed which may be against the Interests of Native Country. GASCO Con 2022
  12. 12. Globalization & Global Supply Chains are more Prone to Supply Chain Disruptions. A Supply Chain Disruption is any Sudden Change or Crisis – be it Local or Global – that Severely Impact the Supply Chain Activities, Processes and operations. Supply chain disruption is defined as a Major Breakdowns in the Production or Distribution / Supply and other Major Functions of a Supply Chain that Challenges your business’s ability to Plan, Source, Make, Deliver and / or Sell Products and other Transactions when an External Force Acts upon beyond the Control of the Business. The Adverse Impacts of Supply Chain Disruptions may in Certain Cases overshoot the Benefits of Globalization. GASCO Con 2022
  13. 13. 14 Strategy & Implementation Risk Inaccurate Planning and Forecasting Mismatch of Plans & Actual Demand & Supply; Natural Disasters; Environmental Issues Pandemics & Health Issues Market Demand & Supply Risks & Price Fluctuations Supply Chain Security Cyber Attacks Logistic Disruptions Failures & Delays Supplier Bottlenecks Tier – 1, 2, 3 etc Quality Issues, M/C Breakdown, Halting Production; Performance Risks or Process / Tech. Problems Legal & Regulatory Restrictions & Compulsions Political Geopolitical Instability: War, Civil Disturbances, Strikes GASCO Con 2022
  14. 14. In the aftershock of the COVID-19 epidemic, followed by many other events like Suez Canal Supply Crisis, Russia – Ukraine War, Escalation of Tensions & Disputes between China-Taiwan; Cold Trade war between USA & China etc Disrupted and Continue to Upset the Supply Chain Leading to Risks in Terms of Delivery, Quality, Costs, Service Performance, Supplier & Customer Relationships. These Supply Chain Disruptions Reflect as Decreased Productivity, Increased Costs, Non-Availability of Inputs & Raw Materials, Delayed Deliveries or Non- Deliveries, Stockouts and Loss of Revenue, as well as Loss of Customer Trust - Rising Customer Dissatisfaction; Cash Flow & Financial Problems, Closure of Businesses or Insolvency, and more and many Economic Fall outs. GASCO Con 2022
  15. 15. The coronavirus pandemic and subsequent other events are forcing companies to make a Trade-off between Efficiency and Resilience in Global Supply Chains. These Adverse and Unfavourable events Triggered Disruption of the Global Supply Chain - hampered factory operations and sown chaos in Global Supply Chains – Damaged many economies around the world. we have seen Shortage & Stockout Situations for many items including very Essentials like Food, Groceries, Household supplies, Medical, Personal Protective Equipment’s (PPE), Cloths and so on. With Lead Time Issues, Uncertain Demand & Deliveries – All the Supply Chain Targets & Measures gone awry. Govt. Regulations / Restrictions for Mobility, Lockdowns, Increased border controls and customs regulations result in longer wait times, and lack of capacity for long-haul and last-mile fulfillment etc apart from overall Economic slowdown, Short Supplies, Labor Non-availability, Health Issues and Severe Financial Crisis created extreme challenges - challenges of keeping the businesses running & keep them stable. GASCO Con 2022
  16. 16. Pandemic’s impact on global trade is so devastating that it has exposed the Fragility of the Supply Chain and proved to be a Real Test of Corporate Ingenuity, Resilience and Flexibility to face the Crisis. So, Businesses have started looking for Offshore to Nearshore and Local Sourcing to offset and Counterbalance the Adverse Impacts of Global Sourcing and the Associated Supply Disruptions. Among Businesses, there is a growing Tendency to Explore & Experiment with various Policies and Strategies Intended to Promote & Strengthen Local Competitiveness. GASCO Con 2022
  17. 17. 18 GASCO Con 2022
  18. 18. Encourages Local Suppliers - Develops Local Competitive Advantage. Localization ensure Less Distortions in case of Supply Chain Disruptions as there is limited movement of people and goods in a limited local area. Better Utilization of Local Resources & Value Creation Locally. Local Resource Engagements & Creation of Better Employment Prospects for Local Talent. Balanced Development of Local Economy & Growth. Avoids Skewed Economic Growth on Misconceived (Not the True Sources) Concept of Competitive Advantage and Concentration of Development in Few Pockets of Developed Nations. Reduced Dependency on Supplies from Oversees. Saves Foreign Currency Outflow – Strengthens Balance of Payment Position of the Native Country. Decrease of Trade Barriers – Avoids Trade Restrictions, Constraints between Nations. Creates a Long Term Business Eco-System with Supporting Supply Bases in the Local and Native Country. Shorter Distances for Shipments & Transportation – So Less Consumption of Fossil Fuel, as a Result Lesser Emissions & Pollutions and Greater Environmental Concerns. GASCO Con 2022
  19. 19. Like there is Two Sides of a Coin, either Globalization & Localization both have Advantages & Disadvantages. In the name of Globalization, Allowing Free Entry of all for all with Boundaryless Borders making Homes turf a Dumping Ground is Not a Good Economics. Skewed and Concentric Economic Growth with too much Specialization in Certain Regions or Countries is Antithesis of Liberalization. Corona Exposed Weak and Fragile Points of Globalization. Semiconductor Chip Shortage – Reaching Crisis Point Worldwide really Exposed as a finer Example of shortcoming of Globalization, calling for now to Localize. Similarly Inward Looking, Closed Economy with Entry Barriers and too much Controls on Foreign Entry and Excessive Protection to Domestic Industry, naturally Limits & Constraints Growth & Progress. The opposite of Economic Globalization—or Free-market Trade Across Borders—is Localization – a Protectionism, an economic policy that attempts to protect domestic businesses from foreign competition and labor markets, usually by imposing trade barriers like Tariffs and Restrictions. GASCO Con 2022
  20. 20. Both Extremes of Globalization and Localization have Consequential Dangers to Damage & Jeopardies the Economies. Rationally, Balancing both Globalization & Localization, proves beneficial for the Nations by taking Advantages of Globalization through Liberal and Free Trade with some Limitations & Cautions and at the same time taking due consideration of the Domestic Industry and Business by Strengthening them and Reasonably Protecting and Sheltering Native Industry from Foreign Cop is a Wise & Balanced Approach. The term ‘Glocal' combines the words Global and Local. Embracing Glocal means that you have a Global Mindset, Reach & Access, but you also Accommodate & Promote the Values, Cultures, Ideals, Interests and Needs of your Local Businesses. GASCO Con 2022
  21. 21. GASCO Con 2022 22
  22. 22. Glocal – A Concept of Self-Reliance with Local Strengths and Global Access, Trading Freedom and Liberal Integration. Self-reliance is the Ability and Independence to Do Things and Make Decisions by a Nation on its Own, without Coercive and Forcible Gravity from other Nations or any Organizations to Influence the Key Decisions. Four mutually reinforcing factors (5 C’s) that determine a country’s self-reliance: Capacity & Capability Competence Collaboration Compliance Commitment Glocal, Aligns the Local Aspirations and Development with Global Integration without Sacrificing Self- reliance, Self-sufficiency based on Local Strengths, Independence, Autonomy of Native Nations. GASCO Con 2022
  23. 23. Glocal, in Essence is aligned to “Atmanirbhar Bharat Abhiyan” - “A Call to the Nation for Self - Reliance” by our Visionary Prime Minister, Shree Narendra Modi Ji exhibiting his leadership ascent during Critical Crisis Situation of COVID. This Concept of “Atmanirbhar” (Self-Reliance) envisioned to be built on Five Pillars – Those are the Key Areas to Strengthen the Nation: ➢ Economy, ➢ Infrastructure, ➢ A system driven by Technology and forward- looking policies, Demography, and ➢ Economic Demand. GASCO Con 2022
  24. 24. GASCO Con 2022
  25. 25. The Vision of Modinomics is Perform Reform & Transform Reflecting True Vision to Strengthen the Nation’s Economy through Self-Reliance. Atmanirbhar Bharat Abhiyan lays strong foundations to for raising our economic growth and long-term sustainability through our Strengths focused on Land, Labour, Liquidity and Laws. Democracy, Demography and Dynamism are shaping our Destiny today. GASCO Con 2022
  26. 26. Prime Minister Narendra Modi pitched for the use of products manufactured in the country, saying the novel coronavirus outbreak has taught us the Importance of Local Manufacturing, Local Market and Local Supply Chain. "In times of crisis, this local has fulfilled our demand, this local has saved us. Local is not just the need, it is our responsibility also," he said in his address to the nation. The prime minister said Indian has to become “Vocal for their Local", not only to buy local products, but also to promote them proudly, in essence "we must make the local as a mantra of our life". "The global brands were sometimes also very local like this. But when people started using them, started promoting them, branding them, felt proud of them, they became global from local products," he said. GASCO Con 2022
  27. 27. While delivering the Inaugural Address at CII Annual Session 2020, Getting Growth Back, through video conference, Prime Minister Narendra Modi on 2nd June’2020, listed five things that will help India mitigate the impact of the coronavirus pandemic and bring back the country to a high growth trajectory. The theme of the annual conference was “Building India for a New World : Lives, Livelihood, Growth” “To bring India on the path of rapid development, Five Things are very important to build a self- reliant India - Intent, Inclusion, Investment, Infrastructure and Innovation,” the PM said Intent Inclusion Investment Infrastructure Innovation GASCO Con 2022
  28. 28. GASCO Con 2022 29
  29. 29. GASCO Con 2022 30 ➢ The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher Import Substitution and Employment Generation as a part of Atmanirbhar Bharat’s domestic manufacturing expansion strategy. ➢ The government has set aside Rs 1.97 lakh crore under the PLI schemes for various sectors and an additional allocation of Rs 19,500 crore was made towards PLI for solar PV modules in Budget 2022-23. ➢ Launched in March 2020, the scheme initially Targeted Three Industries: ➢ Mobile and allied Component Manufacturing ➢ Electrical Component Manufacturing and ➢ Medical Devices ➢ 10 More Sectors were Added in November 2020 (Including Automobiles & Auto Components: Department of Heavy Industry) ➢ One more Sector Added in September 2021 (Drones and Drone Components: Ministry of Civil Aviation) ➢ Total Now the Scheme is Applicable for 14 Sectors.
  30. 30. GASCO Con 2022 31 ❖The incentives, calculated on the basis of incremental sales, range from as low as 1% for the electronics and technology products to as high as 20% for the manufacturing of critical key starting drugs and certain drug intermediaries. ❖In some sectors such as advanced chemistry cell batteries, textile products and the drone industry, the incentive to be given will be calculated on the basis of sales, performance and local value addition done over the period of five years.
  31. 31. GASCO Con 2022 32 The Production Linked Incentive (PLI) Scheme for Automobile and Auto Component successful in attracting proposed investment of₹ 74,850 crore against the target estimate of investment ₹ 42,500 crore over a period of five years. 75 Applicants approved under “Component Champion Incentive Scheme”; 20 Applicants were earlier approved under “Champion OEM Incentive Scheme”. Proposed investment of ₹ 29,834 crore expected from approved applicants under Component Champion Incentive Scheme. Incentive upto 18%, to encourage industry to make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) products of PLI Scheme for Automotive Sector. PLI scheme for Automobile and auto components and PLI for ACC along with FAME Scheme to enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV)based system. Major boost to Hon’ble Prime Minister Narendra Modi’s Make in India and AtmaNirbharBharatAbhiyan. https://pib.gov.in/PressReleasePage.aspx?PRID=1806077
  32. 32. GASCO Con 2022 33 ❖ Champion OEM Incentive Scheme:The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments and any other Advanced Automotive Technology vehicle prescribed by MHI depending upon technical developments. ❖ Component Champion Incentive Scheme:The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on pre-approved Advanced Automotive Technology components of all vehicles, CKD/SKD kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors including automobile meant for military use and any other Advanced Automotive Technology components prescribed by MHI depending upon technical developments. https://pib.gov.in/PressReleasePage.aspx?PRID=1757651
  33. 33. GASCO Con 2022 34 Determined Sales Value (in Rs Crore) Incentives (%age of Determined Sales Value) <= 2,000 13% > 2,000 to 3,000 14% > 3,000 to 4,000 15% > 4,000 16% Cumulative Determined Sales Value of Rs 10,000 Crore over 5 years Additional 2% Incentive Slabs for Champion OEM and New Non-Automotive (OEM) Investor Company Determined Sales Value (in Rs Crore) Incentives (%age of Determined Sales Value) <= 250 8%* > 250 to 500 9%* > 500 to 750 10%* > 750 11%* Cumulative Determined Sales Value of Rs 1,250 Crores over 5 years. Additional 2% Battery Electric vehicles & Hydrogen fuel cell vehicles components Additional 5% Incentive slab for Component Champion and New Non-Automotive (Component) https://pib.gov.in/PressReleasePage.aspx?PRID=1757651
  34. 34. GASCO Con 2022 35 The Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India for enhancing India’s Manufacturing Capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of ₹25,938 crore. The Production Linked Incentive (PLI) Scheme for Automobile and Auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products. https://pib.gov.in/PressReleasePage.aspx?PRID=1806077#:~:text=The%20Government%20approved%20the%20Production,outlay%20of%20%E2%82%B925%2C938%20crore.
  35. 35. GASCO Con 2022 36 PLI Scheme for automotive sector (₹25,938 crore) PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) Faster Adaption of Manufacturing of Electric Vehicles (FAME) (₹10,000 crore) These Schemes will enable India to leapfrog from Traditional Fossil Fuel based automobile transportation system to Environmentally Cleaner, Sustainable, Advanced and more Efficient Electric Vehicles (EV) based system. https://pib.gov.in/PressReleasePage.aspx?PRID=1806077#:~:text=The%20Government%20approved%20the%20Production,outlay%20of%20%E2%82%B925%2C938%20crore.
  36. 36. GASCO Con 2022 37 The PLI scheme for Automobile and Auto Component Industry has been a huge success in terms of the applications received from local as well as globally headquartered groups engaged in / proposing to manufacture Advanced Automotive Technology vehicles / products. Apart from Indian business groups, approved applicants include groups from countries such as Japan, Germany, USA, UK, Republic of Korea, Ireland, France, Belgium, Netherlands and Italy. The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination which resonates strongly with Hon’ble Prime Minister’s clarion call of Atma Nirbhar Bharat - a self-reliant India. https://pib.gov.in/PressReleasePage.aspx?PRID=1806077#:~:text=The%20Government%20approved%20the%20Production,outlay%20of%20%E2%82%B925%2C938%20crore.
  37. 37. GASCO Con 2022 38 India has over 6 Crores MSMEs across manufacturing and services sectors which employ over 11 Crores people. MSMEs also contribute immensely in exports from the country. The MSMEs are spread in every nook and corner of the country. However, one of the biggest challenges faced by MSMEs in India is the inadequate availability of capital. MSMEs have limited access to external equity primarily because only a handful of players provide early stage equity capital. Even if the equity is made available, the uptake would remain low. Setting up an MSME fund in the name of SRI (Self-Reliant India) Fund would squarely address these challenges, give them a thrust to break their barriers, encourage corporatisation and allow them to grow to their full inherent potential. It is a form of Category II Alternative Investment Fund (AIF). SRI Fund will be a combination of Mother/Daughter Funds which will leverage private equity/ other funds and thus will multiply the impact of the initial budgetary infusion. Mother Fund will provide funds only to the Daughter Funds for onward investment as growth capital, while the investment in MSMEs will be done by the Daughter Funds under the Fund. Both the Mother and Daughter Funds will be duly registered as Alternate Investment Funds with SEBI. SRI fund is implemented by a special purpose vehicle, NSIC Venture Capital Fund Limited, which is a 100 per cent subsidiary of National Small Industries Corporation, an mini-Ratna under the ministry. The government is the sole anchor investor in SRI fund with the initial budgetary support of Rs 10,000 crore and aims to invest Rs 50,000 crore as the mother fund, while the rest is expected to come from daughter funds that will raise capital from outside sources such as banks, financial institutions, private equities and venture capital investors. The first set of 88 MSMEs have been funded and we invested roughly Rs 200 crore and private sector invested Rs 1400 crore – Total Rs 1,600 cr support.
  38. 38. GASCO Con 2022 39
  39. 39. GASCO Con 2022 40 The overall Logistics Cost is about 14% of GDP, significantly higher than that of many other countries. Transporting goods by Rail Costs 45% less (on a per tonne, per km basis) compared to road, but three-fourths of all goods are sent across the country by road because of the inefficiencies in rail transport. The government has come up with one answer to this problem—a network of multi- modal logistics parks (MMLPs). In 2018, an average freight train emitted around 18 grams of carbon dioxide per tonne-kilometer. The emissions of an average truck were much higher: 112 grams of CO2 per kilometer. The Umweltbundesamt, the environmental department of the German government, made this calculation.
  40. 40. GASCO Con 2022 41 1 2 3 4 5 6 To Promote Inter-Modality, Multi-modality through seamless integration of processes, Digital Systems, Policies / Plans and Legislative Requirements. To Promote and Ensure optimal utilization of logistics infrastructure/assets/facilities through synergetic usage Of Physical Assets, Processes, Taxonomy, benchmarking of service quality standards, in the logistics sector. To Promote Inclusivity by Addressing Needs of Logistics Supply and user side (agriculture and manufacturing sector and internal and external trade) and encourage public-private participation. . To promote greater adoption of information communication technology, upgraded infrastructure, use of drones, automation, innovation, green logistics, international best practices and facilitate integration with global value chain. To Reduce Fragmentation in the sector, Promote Excellence, Mainstream Logistics in Higher Education, upskilling and Re-skilling of existing workforce.
  41. 41. Targets for achieving the vision of the National Logistics Policy are to According to a new report by Arthur D Little and the Confederation of India Industry (CII), India’s Logistics and supply chain costs currently amount to a staggering $400 billion, up to 14 percent of the GDP, 9 percent of China and an average of 8 percent recorded by the US and Europe. Compared to the global average of 8 percent, India’s logistic cost has raised a competitiveness gap of approximately $ 180 billion! GASCO Con 2022
  42. 42. Improvement in Inventory Management Improved efficiency in regulatory matters & order processing Logistics Performance Index (LPI) Reduction in logistics costs Improvement in Transportation Improvement in warehousing Development of Data Driven systems GASCO Con 2022
  43. 43. GASCO Con 2022 44
  44. 44. GASCO Con 2022 45 ➢Railways ➢Roads ➢Ports ➢Waterways ➢Airports ➢Mass Transport ➢Logistics Infrastructure
  45. 45. GASCO Con 2022 46
  46. 46. GASCO Con 2022 47 Self-reliance in defense is of vital importance for both Strategic and Economic Reasons, hence building an indigenous defense potential is essential. The presence of robust security architecture is primary for India’s geopolitical ambitions and against hostile neighbours’ actions. A country like India with its immense potential and strategic location requires to be self-reliant, hence it is important to pursue the idea of indigenization.
  47. 47. 09-11-2022 GASCO Con 2022 48 Military expenditure (% of GDP) in India was reported at 2.8827 % in 2020, according to the World Bank collection of development indicators, compiled from officially recognized sources. World Bank Report on November of 2022. India's defence budget is about 13% of central government's total expenditure. That's roughly ~ 2.9% of India's GDP.
  48. 48. GASCO Con 2022 49 2019-20 : Capital Expenditure on Imports - Rs 38,156 crore - 41.89% of the Total Capital Procurement. 2020-21 : Capital Expenditure on Imports - Rs 42,786 crore – 36% of the Total Capital Procurement. 2021-22 : Capital Expenditure on Imports - Rs 39,650 crore - 35.28% of the Total Capital Procurement. Defence Minister Rajnath Singh told Lok Sabha – 29th July’2022 India spends around 3% of GDP on defense and 60% of that is Spent on Imports.
  49. 49. Self-Defense Strategic Advantage Technological Advancement Economic Drain Employment SN Panigrahi GASCO Con 2022
  50. 50. GASCO Con 2022 51 The Government has taken several policy initiatives and brought reforms to promote self-reliance in defence manufacturing. These policy initiatives are aimed at encouraging indigenous design & development, innovation and manufacture of defence equipment in the country, thereby reducing dependency on imports in long run. 1. DPP-2016 has been revised as Defence Acquisition Procedure (DAP) 2020, which is driven by the tenets of Defence Reforms announced as part of ‘Aatmanirbhar Bharat Abhiyan’. 2. In order to promote indigenous design and development of defence equipment ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} category has been accorded top most priority for procurement of capital equipment. 3. Ministry of Defence has notified ‘First Positive Indigenisation List’ of 101 items on 21st August 2020 and ‘2nd Positive Indigenisation list’ of 108 items on 31st May 2021 for which there would be an embargo on the import beyond the timelines indicated against them. This is a big step to promote indigenization in defence sector. 4. Notified a Positive Indigenization list of sub-systems/ assemblies/ sub-assemblies/ components of DPSUs on 27th December 2021. The list contains 2,500 items, which are already indigenised and 351 items for which there would be an embargo on import beyond the timelines indicated against them.
  51. 51. GASCO Con 2022 52 5. The ‘Make’ Procedure of capital procurement which is aimed at encouraging design, development and manufacture of defence products by Indian private industry with a minimum of 50% Indigenous Content (IC) on cost basis of the total contract value., primarily for import substitution, has been simplified. 6. Enhanced FDI in Defence Sector up to 74%; Innovations for Defence Excellence (iDEX) - creation of an ecosystem to foster innovation and technology development; Technology Development Fund (TDF) to encourage participation of public / private industries especially MSMEs; Establishment of two Defense Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu to attract investments of Rs 10,000 Cr in each corridor by year 2024-25.
  52. 52. GASCO Con 2022 53 India's defence exports have grown eightfold in the last six years -- from Rs 1521 crore in 2016-17 to Rs 12,815 crore in 2021-22. "The major contribution in this growth has come from the private sector. During 2021-22, the private sector has contributed almost 70 per cent of the total exports. According to the details provided by Singh, contribution of the private sector in India's defence exports in 2016-17 was Rs 194 crore while the total value of exports was Rs 1,521 crore. In 2017-18, the value of India's total exports was Rs 4,682 crore including Rs 3,163 crore worth of exports by the private sector. The contribution of the private industries went up to Rs 9,813 crore in 2018-19 while the total volume was Rs 10,746 crore. In 2019-20, the total exports were valued at Rs 9,116 crore out of which Rs 8,008 crore was from the private sector. The volume of exports in 2020-21 was Rs 8,435 crore which included the contribution of Rs 7,271 crore by the private industries. The total defence exports went up to Rs 12,815 crore in 2021-22 out of which Rs 8,800 crore was contributed by the private sector, the details furnished by Singh showed. " About 80 countries import Indian defence equipment, sub-systems, parts and components.” Defence Minister Rajnath Singh told Lok Sabha – 29th July’2022
  53. 53. GASCO Con 2022 54
  54. 54. 09-11-2022 GASCO Con 2022 55 The pace of national highway (NH) construction in the country had touched a record 37 km per day in 2020-21, it had slowed to 28.64 km a day in 2021-22, due to COVID-19 pandemic-related disruptions and a longer-than- usual monsoon in some parts of the country.
  55. 55. GASCO Con 2022 56 Vande Bharat Express, previously known as Train 18, is a semi-high-speed, electric multiple unit train operated by the Indian Railways on 4 routes as of October 2022. It was Designed and Manufactured by the Integral Coach Factory (ICF) at Perambur, Chennai under the Make in India initiative. Vande Bharat Express has better energy efficiency and passenger riding experience with several unique features like bio-vacuum toilets, Wi-Fi onboard, fully automatic doors etc. Vande Bharat Express is capable of running at a maximum speed 160kmph.
  56. 56. GASCO Con 2022 57 Modern Coach Factory (MCF) / Rae Bareli has signed a ToT (Transfer of Technology) contract with M/s Dawonsys, South Korea for Design, Development, Manufacturing and Testing of Aluminium Body passenger coaches. The use of Aluminium Body coaches in these new generation energy efficient Vande Bharat train sets will also be considered to the extent possible. Rolling Stock to be procured for Mumbai- Ahmedabad High Speed Rail (MAHSR) (Bullet Train) will be having Aluminium Body coaches.
  57. 57. GASCO Con 2022 58 Railways’ First Indigenously Manufactured Aluminium Goods Train Rake was Flagged off from Bhubaneswar in Odisha on Oct 17, 2022. Made in collaboration with Besco Limited Wagon Division and aluminium major Hindalco, the Rakes are Lighter - 180 tones lighter; Needs Low Maintenance, & have a higher payload over the current conventional rakes. It also has a lower carbon footprint for every 100 kg of weight reduction in wagons. The lifetime carbon saving was eight to 10 tonnes and this meant, saving of more than 14,500 tonnes of CO2 emissions for a single rake; have more carrying capacity, consume less energy and are corrosion-resistant. They are 100% recyclable and even after 30 years, they will be as good as new.
  58. 58. Global Supply Chain advanced due to Globalization and Increasing Free Trade among Countries. Globalization undoubtedly has many Advantages & Benefits of Better Access and Integration of Supplies at Global Level. However, Globalization & Global Supply Chains are more Prone to Supply Chain Disruptions. COVID Pandemic’s impact on global trade and Supplies is so devastating that it has exposed the Fragility of the Supply Chain and proved to be a Real Test of Corporate Ingenuity, Resilience and Flexibility to face the Crisis. So, Businesses have started looking for Offshore to Nearshore and Local Sourcing. GASCO Con 2022
  59. 59. Glocal – A Concept of Self-Reliance with Local Strengths and Global Access, Trading Freedom and Liberal Integration with Limitations. That means Glocal is a Combination of Globalization & Localization - Thinking Global & Acting Local – Developing, Supporting Local Industry & Business to attain the Global Level. Developing Self-Sufficiency, Self-reliance, Strong Domestic Industry, Increase Competitiveness, Independence to Nations with Collective Cooperation among the Nations, Global Reach & Access, Knowledge & Information Sharing, Exchange of Goods & Service etc are the Glocal Mantras. These will Ensure Healthy Growth of the Nations, Collaborative Engagement among the Nations, Mutual Cooperation & Trust. GASCO Con 2022
  60. 60. GASCO Con 2022 62
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