<ol><li>CAGR of 15%–18% ~$55 billion</li><li>electric vehicles (EVs): CAGR of 37%.</li><li>low-cost manufacturing</li><li>Strong supplier</li><li>key market Penetration like AFR and LATAM </li><li>$3.5 billion outlay for clean energy </li></ol>

Automotive

<ol><li>China Covid Lockdown </li><li>China Geo-political Risk </li><li>ESHA :: lesser polluting industries in .in</li></ol>

Supply chain diversification: 

<ol><li>PLI outlay of $47.8 billion </li><li class="ql-indent-1"> 	 13 key sectors, resulting in an overall increase in exports. </li><li>fresh infusion of investment of nearly $50 billion, with a production increase of about $500 billion in the next five years.</li><li>electronics, pharmaceutical, automotive, advanced chemistry cell (ACC) battery, solar, and white goods (home appliance) sectors, </li></ol>

Government-led initiatives: 

Sectors to watch out for : Key investment opportunities would emerge here

<ul><li>supply chain diversification</li><li>Sectoral Advantages </li><li>Government initiatives</li><li>CAPEX infusion into manufacturing</li><li>M&A activity</li><li>PE/VC led investment in manufacturing.</li></ul>

six megatrends driving Indian Exports 

<ol><li>Chemicals</li><li>Pharmaceuticals</li><li>Electronics</li><li>Automotive</li><li>Industrial machinery</li><li>textiles</li></ol>

key Sectors 

<ul><li>India : sixth-largest economy</li><li>3.1% of the GDP</li><li>1.6% only of global trade</li></ul>

Lot of Room for growth 

Top 15 export categories accounted for over 72% of total export

<ol><li> $108 billion in M&A deals in India in 2021</li><li> Scope acquisitions outside companies’ core operations == 4/10 </li><li> First-time buyers == 80%</li><li>15.7% == manufacturing sector</li><li>Cross-border M&A == 3X in 4Y to 2021 </li></ol>

M&As

<ol><li>Contract Research and Manufacturing Services (CRAMS)</li><li>Contract Development & Manufacturing Organisations (CDMO) </li><li>operations globally</li><li>rising cost competitiveness of India.</li></ol>

Future OF Manufacturing Business 

<ol><li>CAGR of 16%–18% = ~$50 billion</li><li>low cost of manufacturing (30%–35% lower than in the US and Europe), </li><li>cost-efficient R&D (about 87% less than in developed markets), </li><li>cheap skilled labour.</li></ol>

pharma

<ol><li>CAGR of 18%–20% ~$75 billion</li><li>demand from developing markets</li><li>low cost + PLIs</li><li>100% FDI</li><li>higher M&A activities.</li></ol>

Industrial machinery

<ol><li>CAGR 13%–16% ~$110 billion</li><li>Complete value chain</li><li>Competitive cost </li><li>PLI scheme ~$1.42 billion</li><li>Preferential market access to 43 countries under 15 trade agreements</li></ol>

Textile and apparel

<ol><li>CAGR of 35%–40% ~$145 billion</li><li>strong manufacturing technology </li><li>R&D capabilities </li><li>end-to-end supply chain improvement.</li><li>Mobile phone exports = 5X+5Y </li></ol>

Electronics

<ol><li>FDI investments increased by about 65% between 2015 and 2020</li><li>Free-trade agreements (FTAs)</li><li>India-UAE Comprehensive Partnership Agreement (CEPA)</li><li>India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA)</li></ol>

Investments : FDI 

$418 billion Exports in  FY2022 40% growth over FY2021

Bain Report:  1 trillion India Manufacturing Exports in 2028 

<ol><li>Define Clear roadmap : products, geographies, and customers</li><li>operations models: Direct; Partners; Acquisition </li><li>Supply Chain Robustness </li><li>business planning: Cash flow & Risk Models </li><li>skills : Legal; Internation Relations; Tech - IPR </li></ol>

Imperatives for export acceleration for companies

<ol><li>India’s cost advantage</li><li>Strong supplier base</li><li>R&D capabilities</li><li>Samsung, Wistron, and Foxconn </li></ol>

Sectoral advantages: 

35% year-over-year (YOY)  FY23 ~ $100 billion 6X More Capex in 5Y

 Capex-led growth:

$70 billion in 202155% UP since 2019Buoyancy in Manufacturing Focus : Pharma + Chemicals

PE/VC-led investments:

India growth story in manufacturing would provide a feeder for investment ; research into these reports would be a good start towards stock  ideas 

Propelled by growth in priority sectors and driven by favourable megatrends, India’s manufacturing sector has opened itself into new geographies and segments.

BAIN

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