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Gujarat : An Enduring Strong Economy

 Population : Over 50 million (5.0% of India)

 Geographical area : 1,96,000 sq. km (6.2% of India)

 Gross State Domestic Product (GSDP) : US$ 45.3 billion

 Per Capita Income : US$ 915 at current prices

 Urbanisation : 37.4%

 High industrial growth : Gujarat has demonstrated a Composition of GSDP as per economic activity
high industrial growth rate of 12.5% from 2002 - 2007

 Industrialisation : Gujarat is home to over 800 large 18.2%

industries and 3,20,000 micro, small and medium Primary Sector 44.0%

Secondary Sector
Tertiary Sector

Source: Socio Economic Review 2007-08

Gujarat : A Thriving Industrial State
Contribution to National Economy Presence across industry sectors
Stock market capitalization 30.0%

Coastline 22.0%
Petroleum products 31.2 %
Exports 21% Chemical & Pharma 22.9 %
Engineering Industries 12.6 %
Fixed capital investment Food & Beverages 9.7 %
Value of output 15.6%
Textiles & Apparels 6.5 %
Mineral based industries 2.9 %
Net value added 14.0%
by manufacture Metallurgical Industries 7.5 %
No. of Factories 10.0% Others 6.7 %

Employees 9.5%

Significant share in key sectors & products

Soda ash production 98.0%

Salt processing 85.0%

 World’s largest producer of castor and cumin

Diamond processing 80.0%  World’s largest gas based single location sponge iron plant
Plastic industry 65.0%
 World’s largest producer of processed diamonds
Petrochemicals 58.0%
 World’s 3rd largest producer of denim
Chemicals 50.0%
 Asia's largest grass root petroleum refinery at Jamnagar
Groundnut 42.3%

 India's largest producer of cotton

35.0%  India's first LNG chemical port terminal at Hazira

Source: Socio Economic Review 2007-08

MSMEs in Gujarat : An Overview
Progress of MSMEs registration in Gujarat
 The strength of Gujarat’s manufacturing sector lies in its 350000

strong base of micro, small and medium scale enterprises 300000

No. of MSMEs
(MSMEs) 200000


 MSMEs have played a pivotal role in industrial dispersal and
overall industrial development of the State 0
2000 2001 2002 2003 2004 2005 2006
Year (Sept-06)

 MSMEs have proved to be a major contributor to the

economy of the state, especially in terms of value
Under the Act 2006, MSMEs are classified in three classes
addition, employment generation and entrepreneurship
development Classes of MSME

Enterprises Investment in Plant & Investment in

 There are at present over 320,000 MSMEs in Gujarat. Machinery (Manufacturing) Equipment (Services)

Micro Less than Rs. 25 Lakhs Less than Rs. 10 Lakhs

 Government of India, under ministry of MSMEs have
Small Rs. 25 Lakhs– Rs. 5 Cr Rs. 10 Lakhs– Rs. 2 Cr
enacted the MSME Development Act 2006 and put
into operation effective from 2-10-2006 Medium Rs. 5 Cr– Rs. 10 Cr Rs. 2 Cr– Rs. 5 Cr

Source : Industries in Gujarat 2007

Investment & Employment Trend of MSMEs
 The total investments by the MSME units in Gujarat was at Investment trend in MSMEs
INR 74,460 million (US$1,816.09 Million) while production 7929.6

Investment (INR million)

8000 7324.3
was estimated at INR 102,230 million (US$ 2,493.41 Million) 7000
6758.4 6505.2
during 1999-2000 6000 5294.6
4967.7 4911.2
5000 4548.6

 There has been an average investment of INR 5,000 million 3000
(US$121.95 Million) every year in MSME sector between
1996-2006 0
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
 The functional MSME units in the state has been responsible
for generation of a total 700000 jobs in the decade Employment generated
(1996-2006) 50000

Jobs Generated
40000 47510 48032 46282
43934 44274 43741
 Total no. of MSMEs registration (up to 2007) in rural, urban & 30000 35555
31062 29924 30784
metropolitan areas are 50,529, 72,506 & 4,483 respectively

1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
97 98 99 00 01 02 03 04 05 06


Source : Industries in Gujarat 2007

District wise Dispersal of MSMEs in Gujarat
No. of MSMEs present in the district
Ahmedabad region has the highest
number of registered MSMEs in
Gujarat constituting 21% of the 2%
total MSMEs present in the state Rann of Kutch

Ahmedabad, Surat, Rajkot, Vadodara Little 2%
and Valsad are the major MSMEs Kutch Rann Sabarkantha Gandhinagar
clusters in the state of Kutch

Surat ranks second with 15% of the Surendranagar Ahmedabad Kheda Panch
21% 4%
total MSME units registered in the 2% mahal
state followed by Rajkot with 10% of 2% Dahod
Jamnagar Anand
the total registered MSME units 6%
4% 10%
Ahmedabad, Surat and Rajkot together
Porbandar Narmada
constitute approximately 50% of the 4%
Amreli Bhavnagar Bharuch
total registered MSMEs in the state Junagadh 3%
Central Gujarat constitutes 39.65% of 15%
the total MSMEs followed by
Navsari Dang
Saurashtra (26%), South Gujarat
(24.35), North Gujarat (8%) & Kutch Valsad
(2%) region 5%

Source : Industries in Gujarat 2007

Industry Sector wise MSMEs
Industry Sector 0.9% 2.1%
0.8% 2.6%
0.5% 2.8%
Machinery & Parts except Electricals
Metal Products
Food Products
Chemical & Chemical Product 31.9%

Wood Products 5.0%

Electrical Machinery & Apparatus 5.3%

Non-Metallic Mineral Products

21.4% 7.5%
Basic Metal Industries
Paper Prod. & Printing
Beverages, Tobacco & Tabaco Products Leather Products
Rubber & Plastic Prod.
Transport Equipments & Parts Electrical machinery & apparatus
Transport Equipments & Parts Paper Prod. & Printing Basic Metal Industries
Non-Metallic Mineral Products Rubber & Plastic Prod.
Leather Products
Wood Products Chemical & Chemical Product
Beverages, Tobacco & Tobacco Products Food Products Metal Products
Machinery & Parts except elect. Textiles

Source : Industries in Gujarat 2007

MSMEs-Industry Clusters

These clusters together

constitute 37.6% of all
MSME units, 43.5% of
investment, 47.8% of
production & 47.2% of
employment in MSME
sector in Gujarat.

Ahmedabad district
leads in the state with
the presence of all
MSME industries
cluster followed by
Rajkot, Surat and other

Investment Opportunities
 Manufacture of Taffeta Fabric (Project cost–US$1.17 million)
 Manufacture of Crop Shade Fabric (Project Cost–US$0.93 million)
 Conversion Activity for Non- woven Healthcare Disposables (Project Cost – US$0.71
 Manufacture of Webbings for Seat Belts (Project Cost – US$0.71 million)

Food & Agro processing

 Pack-house Project for Bananas (Project Cost–US$1 million)
 Tomato Processing at Important Crop Pockets (Project Cost–US$1 million)
 Bakers Yeast (Project Cost–US$1.33 million)
 Enzymes for Food Processing Industry (Project Cost–US$ 1.10 million)

 Investment Casting Project (Project Cost–US$ 2.2 million)
 Auto Components (OEM Supply) (Project Cost–US$ 2.2 million)
 Forged Auto Components (Project Cost–US$ 0.88 million)
 Ready Mix Concrete for Construction (Project Cost–US$0.77 million)

Investment Opportunities

Gems & Jewellery

 Assaying & Hallmarking Centre (Project Cost–US$ 0.44 million)
 Gold Refinery (Project Cost–US$ 0.66 million)

 Fine chemicals
 Specialty chemicals
 Polymer additives
 Nylon, Engineering plastics

Centres of Excellence
 Research & development facilities
 Industry specific educational institutes and training centres

Gujarat: Robust Infrastructure
Power Dependable power supply–key to industrial development

 Present power generation capacity is 9,628 MW; plans afoot to raise it to 25,000 MW by 2012
 Per capita power consumption is 1,354 units against the national average of 665 units
 Rich availability of natural gas (34 MMCD) and lignite (1,072 MMT)
 24-hour 3-phase uninterrupted power supply

Gujarat is the only State to carry out interlinking of rivers Water

 An extensive water grid network of 75,000 km for irrigation and drinking

 It will cover 75% population of the state by 2010

Gas Transformation of economy through natural gas

 Gujarat State Petronet Limited (GSPL) supplies piped gas to 13 districts, 5 more districts will be added
 Total length of Integrated Gas Grid will be 2,200 km, of which 1,453 km is complete and the rest is
under construction

Gujarat: Robust Infrastructure
Rail and Road Surfaced road length – one of the highest in Gujarat

 State-of-the-art road infrastructure: India’s first National Expressway between Ahmedabad to Vadodara operational
 Total road length is 74,018 km - 95% surfaced road
 Rail length in Gujarat of 5188 km (8.25% of India)

Gujarat Ports opening the gateway to prosperity

 42 ports along 1,600 km coastline, major port at Kandla other important ports at Mundra and Pipavav.
 Landmark projects such as LNG port terminal at Hazira developed by Shell India Limited,
Green field port at Mundra developed by Gujarat Adani Port Limited, LNG terminal at Dahej
developed by Petronet LNG Ltd. and Pipapav port developed by Gujarat Pipapav Port Ltd

Airports Airport connectivity – a cutting edge for business

 13 airports - Vadodara, Surat, Jamnagar, Rajkot, Bhavnagar, Porbandar, Bhuj, Keshod,

Mandvi, Mundra, Kandla, Palanpur, Deesa and Ahmedabad (International Airport)

Gujarat Industrial Policy 2003

• Labour reforms to facilitate industrial investment to generate employment and ensuring productivity.
• Upgradation of Industrial and Urban Infrastructure
Good governance • Power reforms
• Port led development

• Interest subsidies at 5% to MSMEs for setting up new units, expansion and modernization of
existing units
Development of
• Interest subsidy at 3% to MSMEs for technology upgradation of existing units
Micro, Small &
• Financial assistance to MSMEs for quality upgradation, including obtaining ISO–9000 and
ISO –14000 certification
• Assistance for filing patents

• Government has decided to recognize a cluster with a critical mass of a minimum of 50 units
located within the radius of 10 kms at a particular location.
Cluster • Common facility centers for clusters to be encouraged
• Under the scheme, assistance will be given to Cluster Association for carrying out certain activities
leading to further strengthening of the clusters.

Incentives for MSMEs
 Interest Subsidy
• Incentives to SMEs for setting up new projects, expansion, diver sification or modernisation.
• 5% interest subsidy up to Rs. 5 lakhs per year for five years period

 Technology Up gradation
• Interest subsidy @3% per annum maximum Rs. 3 lakhs on term loan towards capital equipment
• Technology Acquisition Fund
• Assistance for Patent Registration

 R&D Support
• Support to R& D institutions
• Sponsored Research–Subsidy @ 50% of the project maximum Rs. 5 lakhs

 Quality Certification
• Support for BIS certification, ISO 9000, ISO 14000, ISO 18000, HACCP, WHO GMP and others
• Subsidy @ 50% subject to Max. INR 0.2 million

 Marketing Support
• Assistance for participation in International Trade Fairs upto maximum Rs. 2 lakhs
• Assistance to Industries Associations @ 50% of total rent subject to Maximum Rs. 5 lakhs

Present Institutional Structure in Gujarat

Gujarat has several institutions that supports the growth of MSME segment in the state:

 Small Industry Service Institute (SISI)

SISI is an arm of the office of the Development Commissioner, Small Industry Development Organization
(SIDO), New Delhi, in Gujarat state. SISI helps MSME’s meet various needs of planning, assessment and
implementation by offering services in technical consultancy, industrial management, training and workshops.

 Gujarat Institute of Development Research (GIDR)

It is an autonomous body engaged in research related to development issues. GIDR, through its Industry and
Finance research, undertakes study on sectoral development. A large portion of studies undertaken by the
institute have focused on development of small scale rural industries.

 Entrepreneurship Development Institute of India (EDI)

It is an autonomous body supported by Government of India and Government of Gujarat and sponsored by
other apex financial institutions. EDI offers education of excellence in entrepreneurship, training and research.
The institute has a mandate to promote the creation of Micro, Small & Medium Enterprises.

Present Institutional Structure in Gujarat

 Center for Entrepreneurship Development (CED)

It is an autonomous body jointly promoted by Government of Gujarat, GIIC*, GIDC*, GSIC* and
GSFC*. CED aims to cater potential entrepreneurs by grooming their management skills. The
institution offers variety of learning platforms for micro, small and medium enterprise creation.

 Small Industries Development Bank of India (SIDBI)

SIDBI is a national support institution for small and medium enterprises for their financial
requirements and up gradation. Its mandate is to work for technology up-gradation in Micro,
small & medium enterprises clusters.

 District Industries Centers (DIC)

DICs, under the governance of Industries Commissionerate supports the development and
economic activities of MSMEs, at district level.

GIIC-Gujarat Industrial Investment Corporation GSIC-Gujarat Small Industries Corporation Ltd.

* *
GIDC-Gujarat Industrial Development Corporation GSFC-Gujarat State Financial Corporation Ltd.

Invest in Gujarat : A world-class Business Destination
To Delhi

Banaskantha Agroprocessing, Dairy

and Engineering
Bio-Tech cluster
Soda ash and salt- Kutch Himmatnagar Gujarat International
based industries, Gandhinagar Finance-Tec City
cement and steel
pipes Kheda Panchmahal
Surendranagar Knowledge corridor
202 industrial estates Anand Industrial corridor
across Gujarat (DMIC)
Jamnagar Dholera
Vadodara Savli Biotech Park
Petroleum and brass
parts Porbandar Rajpipla Petroleum, Chemicals
Bharuch and Petrochemicals
Engineering and Bhavnagar Investment Region
ceramics Junagadh (PCPIR)

Soda ash and salt Chemicals, petrochem.

based Navsari pharma, textiles and

18 Captive Ports along Special Investment Valsad

Region (SIR) 55 special economic
1600 km coastline
zones (SEZs) across
across Gujarat
To Mumbai
55 special economic zones (SEZs) across Gujarat
202 industrial estates across Gujarat

Vibrant Gujarat : Global Investors’ Summit
 The Government has been playing a very active role in
promoting the State as a potential investment destination
through a series of Global Investors’ Summits, organised every
two years since the year 2003

 Total 363 MoUs signed during Vibrant Gujarat Global Investors’

Summit 2007

 Apart from the total MoUs, 309 projects are currently under
implementation aggregating an investment of INR 278,940 million (US$
6,803.415 million), with employment potential for 65,194 jobs

 Encouraged by the outstanding response to the Summits held

in 2003, 2005, and 2007, the fourth Global Investors’ Summit is
planned in January 2009

Connecting Further…

Industries & Mines Department, Government of Gujarat

Industries Commissionerate, Government of Gujarat

Industries Department, Government of Gujarat

Industrial Extension Bureau (iNDEXTb)

Maps used not to scale