Professional Documents
Culture Documents
SculptingtheLandscape
21-23December,2009-Mumbai
KPMG IN INDIA
Foreword
EntrepreneurshipisthekeytoIndiaachievingherpromise
UnlikepasteditionsofthisstudyonIndianentrepreneurship
asaneconomyandasacountry.Unleashedafterdecades
whichsurveyedentrepreneursacrossthecountry,this
ofslowgrowthandgovernmentcontrol,Indias
whitepaperstudiesselectIndianstatesindetailandbring
entrepreneurshavebeguntotakeadvantageofmanyofthe
forththestatesperspective.Thestudyhasrevealedthat
opportunitiespresentedbythepostliberalizationbusiness
Indiansareclearlybullishandforwardthinkingabout
environment.However,foritssize,Indiahasstillhasmuch
entrepreneurshipandthattheyrecognizetheimportanceof
todoinordertoharnessentrepreneurshiponabroader
entrepreneurship.Butthereisstillalotofroomfor
level.Theentrepreneurialecosystemcandofarmorethan
improvement.Wehavealongwaytogotodevelopabroad
todaytospurtheentrepreneurtogreaterheights.Akey
basedandorganizedentrepreneurialcommunity.Thispaper
pillarofthisecosysteminIndiaaregovernmentscentral,
shouldallowustoreassessandrenewoureffortsin
stateandlocal.Governmentpolicies,incentivesand
addressingthesituation.Thestudyalsobringstogetherthe
programsplayasubstantialroleininfluencing
datathatcanbefurtherstudiedforpursuingaspecialpolicy
entrepreneurs.Thisplacesagreatresponsibilityon
focus.
governmentbodiestoenactpoliciesandlawsthat
encourageentrepreneurshipwhichinturncanleadtothe
AsacountryIndiashouldsustainapositivemomentumin
countryseconomicascent.
harnessingthebusinesseswehave,identifyingthegrowth
areasoftomorrowandsupportingmorepeopletobecome
KPMG,oneoftheleadingprovidersofadvisoryservicesin
entrepreneurs.Throughthisstudy,TiEandKPMGhopeto
IndiaandTiE,theworldslargestorganizationof
contributetocraftingmoremeaningfulpoliciesand
entrepreneursaspartoftheircommitmenttofoster
programsthatwillcontinuetoinspiremoreandmore
entrepreneurshipinIndiaarebringingoutthethirdeditionof
Indianstohaveanentrepreneurialmindsetanddevelopa
EntrepreneurialIndia2009.Thewhitepaperendeavorsto
strongercapacitytograbtheopportunitieswehavenow.
assesstheinitiativesofselectIndianstatestoencourage
entrepreneurialgrowthandputforthbestpractices,raise
theprofileofdiscussionsonentrepreneurshipdevelopment
andcontributetoshapingpolicy.
KPMGandTiEembarkedonthisuniquestudy,which
profilestheentrepreneuriallandscapeofIndiaandaimsto
VikramUtamsingh
SridharIyengar
Head-Markets
President
KPMGinIndia
TiEMumbai
uncoverfactorsleadingtoappropriatelevelsof
entrepreneurship.Thestudyevaluatestheperspectiveof
Indianstatesandtheirinitiativestowardsentrepreneurial
developmentononehandwhileevaluatingtheperception
JehilThakkar
ExecutiveDirector,Markets
KPMGinIndia
ofentrepreneursontheseinitiativesthroughtheirviewson
nationalstrengthsandweaknessesasacontextfor
entrepreneurshipontheother.Theentrepreneursindicate
whatpolicyorprogramchangestheybelievewouldenhance
thecountrysenvironmentforentrepreneurship.Italso
attemptstoestablishthebestpracticesacrossIndiato
fosterentrepreneurshipwhilealsobenchmarkingwithsome
oftheglobalbestpracticesinentrepreneurialeconomies
suchasSingapore,PhilippinesandIsrael.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
ExecutiveSummary
HowsupportiveistheecosysteminIndiadoinvestors,
TheEntrepreneursViewpoint
thegovernment,andsocietyprovideafoundationonwhich
entrepreneurscangrowandflourish?Itisaquestionworth
Availability of Finance
exploringindept.
Financialsupportwascitedasthemostlimitingfactorfor
Theemergenceofopportunitiesinmanysectorsandthe
entrepreneurship.Mostentrepreneurscitedthelackof
lackofopportunityinothershasdrivenmanyyoungpeople
appropriatefinancialhelp,resourcesandtheinaccessibility
tostrikeoutontheirown.Manyareleavingtheirwell
ofavailablefinancing.Thereisadeficiencyofsufficientdebt,
payingjobstoestablishtheirownsmallventures.
equityandventurecapitalfunding,governmentsubsidies
Entrepreneurshipishotandrisktakingabounds.The
andfundingavailablethroughgovernementagaencies.
promiseofwealthinthelongrunandthefreedomto
Mostentrepreneursexpressedtheneedforsufficient
choosetheirownpathare,majorfactorsbutdoingthings
funding,bothdebtandequityaimedathelpingnewand
forapassionandfindingfulfillmentarekeydriversaswell.
strugglingbusinesses.Theyalsostressedthattheevaluation
Today,thescopeandvarietyofself-generatedworkis
forloansshouldbefocusedontheviabilityofthebusiness
unlimited.
proposalandnotjustthequantumofcollateralorassetsize.
However,despitethegreatinitiativesundertakenbymany
Indianentrepreneurs,Indiaremainsatoughplacetobean
entrepreneur.Governmentregulations,cumbersome
Entrepreneursacrossthesixstatesprofiledmentionedthe
proceduresandrestrictedaccesstocapitalmakestarting
lackofstronggovernmentpolicysupportfor
andrunninganewbusinessachallengingproposition.
entrepreneurship.Theycitedbureaucracyandcorruption,
poorimplementationofexistingpoliciesandinadequate
Inmanycases,governmentsaremovingtowardsfriendlier
supportmechanismsaspartofthelimitingfactorsto
policiesbutmorerapidchangeisnecessary.
entrepreneurship.
TiEandKPMGasapartoftheiraspartoftheircommitment
Ontheotherhand,theygenerallyagreedthatthesupport
tofosterentrepreneurshipinIndiabringoutthisthirdedition
fornewandgrowingbusinessesisahighpriorityforstate
ofEntrepreneurialIndia2009.Thewhitepaperendeavorsto
governmentsandacknowledgeditasathrustareafor
assesstheinitiativesofselectIndianstatestoencourage
policy.Buttheycompletelydisagreedthatresultingpolicies
entrepreneurialgrowthandputforthbestpractices,raise
werebeingimplementedinamannerthatbenefitednew
theprofileofdiscussionsonentrepreneurshipdevelopment
andentrepreneurialbusinesses.
andcontributetoshapingpolicy.
Theratherambivalentviewofprofessionalsand
ThestudyevaluatestheperspectiveofIndianstatesand
entrepreneursonwhethergovernmentpolicyis
theirinitiativestowardsentrepreneurialdevelopmentaswell
categoricallylimitingorcontributingtoentrepreneurship
asevaluatingtheperceptionofentrepreneurs.The
suggeststhattheyviewthegovernmentpolicyhavinga
entrepreneursindicatewhatpolicyorprogramchangesthey
limitedeffect.Whilethegovernmentisperceivedtobe
believewouldenhancethecountrysenvironmentfor
focusingonentrepreneurship,muchneedstobedoneat
entrepreneurship.
thegroundlevelinorderforgovernmentpolicytobecomea
truecatalystforentrepreneurship.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Entrepreneursstressedthatimplementinggovernment
Partnership Approach
policiesshouldbemoreefficient.Theyrecommendedlocal
policiesshouldalsobecraftedtohelpthebusinessesin
Entrepreneurshipaccordingtogovernmentsisnotpurelya
ruralareasandthatbothnationalandstategovernment
functionofindividualorstatespolicyregime.Itisrathera
agenciesshouldproactivelyengageinseamless
collaborationofentrepreneurs,educationalinstitutes,
partnershipsandassistanceineffectingpoliciesfor
independentagencies,themediaandthegovernment,
entrepreneurship.
wheregovernmentisafacilitatorandanenabler.The
governmentwouldliketoseemoreproactivepartnership
Access to Markets
fromentrepreneursandbusinessinaddressingtheoverall
developmentalchallengesthatfaceIndia.
Formidablebarrierstohighgrowthentrepreneurship
continuetoexistinIndia.Ourresearchintothebarriersand
facilitatorsofentrepreneurshipinthepreviouseditionsof
EntrepreneurialIndiahasrevealedmanyfacetsofthis
Whilegovernmentisoftencriticizedfornotproviding
problem.
enoughsupport.Withlimitedresources,eachstatealso
needstobeconvincedofthecostbenefitbeforeinvesting
StatesViewpoint
inapolicyoraspecificdevelopmentprogram.The
governmentsneedtoevaluatecarefullyeveryrequestfor
Thesixstatesprofiledforthepurposeofthisstudyhave
assistanceorpolicyenactmenttotakeintoaccountthe
beenmovingintherightdirectiontopromotebusiness
overallresourcepictureandgoalsfortheregion.
growth.Thegovernmentisincreasinglybecomingreceptive
toentrepreneurialdemandsandexpectationsandrollingout
Prioritization
programstoprovidesupporttonewaswellasexisting
enterprises.However,implementationofsomeofthe
Eachstateinthecountryhasasetofdevelopmental
programsiseitherlimitedorfocusedatlargerenterprises.
challengesandprioritiestoraisetheoverallprofileofits
Insomecases,thegovernmentsacrossthesestatesare
citizens.Withmorethan30percentofcountryspopulation
increasinglyadoptingnewerapproaches.Whilethestates
belowpovertyline,thestatesprioritiesareoftenclearand
aremovingintherightdirection,albeitatacautiouspace,
maynotfitwiththeprioritiesofsomeentrepreneursand
theytoohavetheirsetofchallenges.
thatsometimeslimitsopportunities.Althoughthe
governmentsacknowledgethatopportunitycreationwill
haveadominoeffectandcouldleadtolongtermeconomic
upliftment,manyshorttermprioritiesandneedsoftentake
precedenceoverlongtermgoals.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Contents
Introduction
01
The Assessment
04
Punjab
05
Gujarat
12
Delhi
19
TamilNadu
25
Karnataka
32
Maharashtra
38
44
48
50
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
01
Introduction
Thecentralroleofentrepreneurshipintheeconomicgrowth
infrastructurehasledentrepreneurstocreatetheirownand
ofnationsisincreasinglycomingintofocus,especiallyinthe
intheprocess,lockuppreciouscapitalwhichshouldhave
recenttroubledtimes.Aspointedoutinarecentarticlein
beendeployedtogrowthebusiness.Inadequateavailability
The Economist,evenasgovernmentsarebusytryingto
oflandwithcleartitles,andowner-occupantfriendlypolicies
savetheireconomies,policymakersaredemonstratinga
hasledtothediversionofscarcecapitaltowards
renewedinterestinentrepreneurshipandinnovation.
unproductiveinvestmentsinlandandbuildings.Lengthy
courtproceedingsandslowjudicialenforcementofproperty
Inmodernopeneconomies,entrepreneurshipisarguedto
rightsandprivatecontractshaveledtosub-optimal
befarmoreimportantthanitverwas.Itisevidentthat
businesspractices.
entrepreneurialventuresaredrivingthegrowthof
economiesdevelopedandemerging.However,amongst
Despiteallodds,theaccentonliberalizationand
thetypesofentrepreneurshipthereisnecessitybased
globalizationinthelasttwodecadeshasbroughtabout
entrepreneurshipatoneendofthespectrumtoopportunity
mitigatingeffectsinmanyoftheareascitedabove.A
basedentrepreneurshipattheother,thatseeksto
discussionwithsomeoftheestablishedentrepreneurs
revolutionizetheworldbyleveragingnewtechnologyand
pointstoapositiveroleplayedbytheneweconomic
creatingnewmarkets.
policiesinopeningupareas.
WhileIndiahasalonghistoryofentrepreneurship,as
GiventheambitiouseconomicgrowthtargetsthatIndiahas
evidencedbycenturiesofbusinessandcommercialactivity
setforitself,highgrowthbusinesseshaveacrucialroleto
andtheexistenceofgenerationsoldbusinessgroupsand
play.Whilehighgrowthbusinesseshavetousetheir
families,recentGlobalEntrepreneurshipMonitorstudies
entrepreneurialingenuitytoovercometheenvironmental
foundthatentrepreneurshipinIndiahaspredominantlybeen
constraintsorrenderthemirrelevant,publicpolicyhasa
necessitybasedratherthanopportunitybased.
significantanddecisiveroletoplayinminimizing,and
preferably,completelyremovingtheconstraintsthathobble
Formidablebarriersexisttoentrepreneurshipcontinueto
highgrowthentrepreneurship.
existinIndiaforhighgrowthentrepreneurship.Ourresearch
intothebarriersandfacilitatorsofentrepreneurshipinthe
previouseditionsofEntrepreneurial India hasrevealedmany
facetsofthisproblem.
Severalexamplescitedininterviewsinclude,several
constraintstoquicktechnologyadoptionbyIndian
companies,.InconsistentIndirecttaxrulesand
enforcementissuesthatlimittheabilitytoscalequickly,
Laborlawsthatlimitthemobilityoflaborforced
entrepreneurstofeargrowthinemployeestrength.Poor
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
02
ThechallengeforpolicymakersinIndiacanthusbe
articulatedasoneofcreatingtherightframeworkof
conditionstoenabletheestablishmentoffastgrowing,
innovativenewbusinesses.Therearemanyavenuesopen
topolicymakerstoaddresstheissue,butthechallenge
wouldbeinprioritization-pickingtherightsetofissuesand
sequencingthemtoachievesignificantandquickpay-off.
Againstthisbackdrop,theEntrepreneurial India 2009
focusesonhowtoredesignIndia'sentrepreneurial
ecosystemsoIndiacanfinallyunleashwhatPrimeMinister
Singhcalled"theanimalspirit"ofIndianentrepreneurs.TiE
andKPMGhavestudiedselectIndianstatestounderstand
theirregulatoryandpolicyframeworkandsuggestbest
practicesthatcouldhelpthecountrytocreateatruly
conduciveentrepreneurialecosystemfocusedatfostering
highgrowthentrepreneurialactivitynotlimitedtonecessity
butoneemergingfromaplethoraofopportunities.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
04
TheAssessment
TodayinIndia,opportunityabounds.Thescopefor
ThefollowingpageswillprofiletheinitiativesbysixIndian
entrepreneurialdevelopmentinthecountryistremendous.
statestofosterentrepreneurialandbusinessgrowth.
WhileGDPgrowthseemstobebackontrack,thecountry
isfacedwithtremendouschallengesincludingcreationof
Ourresearchfocusesonunderstandingthekeypolicy
widespreademploymentandreducingpoverty.Creatingan
initiativesofthesestatestopromotebusinessandindustry.
environmentandanecosystemthatencouragesand
Itfurtheranalysestheentrepreneursperceptionofthese
facilitatestheentrepreneurshiptakesadvantageof
initiativesandtheStateschallengesinpromoting
opportunitycanbecriticalinthenationmeetingitsoverall
entrepreneurialgrowth.Astheseperceptionsand
developmentgoals.
challengesevolve,KPMGandTiEplantoactasacatalyst
forgovernmentsandentrepreneurstocometogetherto
InIndia,wehavedeeptechnicalandknowledgebased
refineideas,enablebetterpolicyimplementationandfoster
resourcestotakeuptheentrepreneurialchallenge.The
growth.
successofIndianentrepreneursaroundtheworld,and
increasinglyinIndia,istestimonytothedriveourpotential
asanentrepreneurialnation.Atpresent,therearevarious
organizationsatthecountrylevelandstateleveloffering
supporttoentrepreneursinvariousways.TheGovernment
ofIndiaandvariousStateGovernmentshavebeen
implementingvariousschemesandprogrammesaimedat
nurturingentrepreneurshipoverthelastfewdecades.
VariousChambersofCommerce&apexinstitutionshave
startedorganizingseminars&workshopstopromote
entrepreneurship.Incidentally,variousmanagementcolleges
haveincorporatedentrepreneurshipaspartoftheir
curriculum.Thisisindeedagooddevelopment.Thisshows
thecommitmentoftheGovernmentandthevarious
organizationstowardsdevelopingentrepreneurialqualitiesin
theindividuals.
However,inacountry,whereover300millionpeopleare
livingbelowthepovertyline,itissimplyimpossibleforany
governmentalonetodriveentrepreneurialandbusiness
growthaproductivepartnershipwithallstakeholdersis
criticalandnecessary.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Punjab
Population
Source:Directorateofeconomicsandstatisticsandstategovernment,2008-09
ThePolicyFramework
New industrial policy to push the states economy
PunjabisoneofthelargestproducersoffoodgrainsinIndiawithfoodgrainscontributing68percenttotheannualfood
productionofIndia.In2006-07itcontributed75.3percentWheatand31.2percentRice.ItwasthefirstIndianstatetouse
agriculturaltechnologytoengineeraGreenRevolution.1
Theeasyavailabilityofrawmaterialhasattractedagro-basedindustrieslikefood&foodproducts,textilesandapparel.
Otherindustrialsectorsinthestateincludechemicalsandchemicalproductsandtransportequipment.
Punjabseconomyisprimarilyanagro-basedeconomyanditsindustrialbaseisdominatedbysmallandmedium
enterprises.However,withthefastchangingglobaleconomicscenario,thestategovernmenthasframedanewIndustrial
Policydirectedatattractingindustrialinvestmentinthestate.
1 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
06
2 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
3 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
4 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
07
5 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
6 PublicPrivatePartnershipinIndia,Punjab,StatePolicy
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
08
ThePolicyImpact
Strong agricultural and well developed small/medium scale industrial base
Thesmallscaleindustriesleadtheindustrialperformanceofthestatewith47percentofproduction,60percentofexports
and21percentoftheinvestmentfortheindustrialsectorin2008.8
FixedInvestment
(INRMillion)
Employment
(InMillion)
ProductionValue
(INRMillion)
2004-05
0.204
48350
0.934
250950
2005-06
0.205
48550
0.938
252000
2006-07
0.205
55000
NA
NA
Source:GovernmentofPunjabandCII,2007-08
7 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
8 IBEF
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
09
ProposedInvestment
Thenewindustrialpolicyhasunveiledreformssuchascluster
(INRBillion)
approachwhichincludesdevelopmentandupgradationof
infrastructure.
2005
203
58.46
2006
214
114.09
2007
105
51.72
2008
102
94.82
2009
(tillAug)
42
86.08
Thenewpolicyislikelytostrengthentheexistingsmallscale
sectorsuchashandtools,steel,forging,castingandtextile
locatedinseveralpartsoftheState.Smallscaleindustrialhubs
includingLudhiana,Batala,Jalandhar,Amritsar,Mohali,
Kapurthala,MandiGobindgarharelikelytobebenefitfromthe
policy.
Source:DepartmentofIndustrialPolicyandPromotion,Monthly
Magazine,September2009
NotonlythesmallscalesectorbutalsotheITIndustryandagro-sectorareexpectedtoattractinvestmenttothestate.The
policyreformstocreatelandbankstoprovidelandataffordablepricestonewindustriesarealsolikelytoincreasethefresh
investmentinthestate.
GrowthImpetus
Proposed Industrial infrastructure
ConsideringthattheIndustrialparksfortheIT,BiotechandTextileindustriesaretheprimarycatalystforthegrowthofthe
industry,thestategovernmentisencouragingthedevelopmentofParks.About273MegaIndustrialManufacturing,
IndustrialPark,MultiplexandHotelProjectswithproposedinvestmentofINR614.66billionhavebeenapprovedbyState
Governmentforimplementationduring2007-08.9
Someoftheindustrialparkscomingupinnearfutureinthestateareasfollows:
Industries
Infrastructure
ApparelExportersAssociationofLudhianaandthePunjabSmallIndustriesCorporationjointlydevelopingan
apparelparkin85acreswith102plots
Textiles
LudhianaIntegratedTextilePark(forknittingandgarmenting)inLudhiana,andLotusIntegratedTexpark,in
Dhaula,DistrictBarnalahavebeenapprovedforPunjabundertheSITPSchemein2007
FoodParks
SirhindinFatehgarhSahibdistrict
IndustrialClusters
Textile(Ludhiana),Leatherindustry(Jalandhar),SewingMachine&parts(Ludhiana),Agriculturalimplements
(Moga),MachineToolsatBatala,BicyclesandBicyclePartsatLudhiana,RerollingSteelMillsatMandi
Gobindgarh,GemsandJewelleryatAmritsar,DieselEnginesatPhagwara,HandicraftsatHoshiarpur
AutomobilesandAutoPartsinLudhianaandWoodenFurnitureatKartarpur
InformationTechnology
Parks
ElectronicsTownship(ELTOP),spanning365acresinMohaliformsthehuboftheITindustryinPunjab
ITparksarealsoplannedforPatiala,Amritsar,JalandharandLudhiana
QuarkcityIndiaPvt.Ltd.-ITspecificSEZinMohali.ThisSEZcoversanareaof20hectares
SEZ
RanbaxyLaboratoriesLtd.,MohaliThepharmaSEZcoversanareaof32hectares
Source:UnitedNationsIndustrialDevelopmentOrganization,PunjabIndustrialreview,2008
9 ConfederationofIndianIndustry,NorthernRegion,Punjab,June2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
10
Institutions
Students
Engineering
38
9455
Management
57
2,000
HotelManagement&
CateringTechnology
120
MCA
25
1,180
force
Thestatehasastrongeducationalinfrastructure,with
literacyrateof69.7percent,whichisabovethenational
averageof64.8percent(2001census).11
Source:GovernmentofPunjab,Education
10 GovernmentofPunjab,IndustrialPolicy,2009
11 MaharashtraGovernment,EconomicSurvey,2008-09
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
11
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Gujarat
Population
50.6 million (as per 2001 census)
Per Capita Net State Domestic Product
Source:SocioEconomicReview,GujaratState,20082009
Source:SocioEconomicReview,GujaratState,20082009
ThePolicyFramework
Highlights of the Industrial Policy 2009
GujaratisconsideredoneoftheleadingindustrialstatesinIndiaandisoftenprojectedasanexampleofabusiness-friendly
state.Itaccountsfor22percentofthecountrystotalinvestmentandcontributesabout16percenttothetotalvalueof
outputaddedbythemanufacturingsectorinthecountry1.Thestatehasachievedgrowthintheindustrialsectorand
contributesnearly16.1percenttothecountrysindustrialoutput1.
ToprovideimpetustothegrowthoftheindustrialunitsinGujarat,thestategovernmenthasreviewedandupdatedthe
IndustrialPolicyandannouncedtheGujaratIndustrialPolicy2009.Themainobjectiveofthepolicyistofacilitateinvestment
inthestate,createlargescaleemploymentopportunitiesandachieveglobalcompetitivenessbyimprovingproductivity
amongindustrialunits.Asperthenormsofthepolicy,thestatehopestodothefollowing2:
1 SocioEconomicReview,GujaratState,20082009
2 IndustriesandMinesDepartmentofGujarat,IndustrialPolicy,2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
13
3 IndustriesandMinesDepartmentofGujarat,IndustrialPolicy,2009
4 IndustriesandMinesDepartmentofGujarat,InvestmentOpportunities(Vision2010forProposedInvestmentProgram)
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
14
5 GovernmentofGujaratScienceandTechnologyDepartment,BTPolicy20072012
6 GujaratTheGrowthEngineofIndia,SectorProfile,Biotechnology,January2009
7 GovernmentofGujarat,IndustriesandMinesDepartment,GemsandJewellerySector,2009
8 GovernmentofGujarat,IndustriesandMinesDepartment,TextileandApparelSector,2009
9 IndustriesandMinesDepartmentofGujarat,InvestmentOpportunities(Vision2010forProposedInvestmentProgram)
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
15
ThePolicyImpact
TheintroductionoftheIndustrialpolicy2009isseentohavehelpedindustrialdevelopmentinthestate.
TheimplementationofpolicieshasleadtoanemergenceofnumberofIndustrialEntrepreneursMemorandum(IEMs)in
thestate.Inthefirsteightmonthsof2009,about61IEMswereimplementedwithaninvestmentofINR13.4billion.
Further,sinceAugust1991tillAugust2009,1,485IEMswhereimplementedbytheentrepreneurswithatotalinvestment
ofINR807.4billionandgeneratingemploymentfor209,100people.11
2007
IEMs
Implemented
2008
2009(UptoAugust)
Number
Investment(INRbillion)
Number
Investment(INRbillion)
Number
Investment(INRbillion)
223
74.7
76
13.3
61
13.4
Source:IndiaStatandMinistryofCommerceandIndustry,GovernmentofIndia
Further,theMicro,SmallandMedium
UnitsRegisteredundertheMSMEDActfromOctober2006toJune2009
Enterprise(MSMED)Act-2006,hasalso
triggeredthedevelopmentofthemicro,small
Micro
Small
Medium
NumberofUnitsRegistered
29085
7911
316
Investment(INRBillion)
58.4
114.2
28.5
Employment(milion)
0.27
0.24
0.04
andmediumenterprisesandabout37,312units
havebeenregisteredwithaninvestmentofINR
201billionandemploymentgenerationof
approx600billionduringOctober2006June
2009.Also,about4,359unitswereregistered
duringJanuary2009June2009.
Source:OfficeofTheIndustriesCommissionerate,Gujarat
10 GovernmentofGujarat,IndustriesandMinesDepartment,Micro,SmallandMediumEnterprises,2009
11 MinistryofCommerceandIndustry,SIAStatistics,September2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
16
MoUs(Number)
ProposedInvestment
(INRBillion)
ProposedEmployment
(Million)
Manufacturing
576
2,405
0.98
Infrastructure
194
4,859
0.17
InvestmentRegions
101
1,967
0.85
UrbanDevelopment
261
1,012
0.17
SocialServices
145
301
0.02
Tourism
99
440
0.13
SpecialSectors
1423
721
0.05
MSME
7252
68
0.30
Announcements
15
444
0.00
Source:SocioEconomicReview,GujaratState,20082009
12 VibrantGujarat,BiotechnologySector,2009;GujaratTheGrowthEngineofIndia,SectorProfile,Biotechnology,January2009
13 SocioEconomicReview,GujaratState,20082009
14 SocioEconomicReview,GujaratState,20082009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
17
ProposedInvestmentandEmploymentinthe60SEZs (May30,2009)
numberoneintermsofareacoveredunder
ProposedInvestmentbytheDeveloper
aswellasUnitsinSEZs
INR2,674billion
SEZsinIndiawith60approvedSEZs(ason
ProposedEmployment
1.9millionpersons
ProposedareaofSEZs
29423.83hectares
May2009).
Source:OfficeofTheIndustriesCommissionerate,Gujarat(SEZs)
15 INDEXTb
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
18
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Delhi
Population
13.85 million (as per 2001 census)
Per Capita Net State Domestic Product
Source:EconomicSurveyofDelhi,20082009
Source:EconomicSurveyofDelhi,20082009
ThePolicyFramework
Highlights of the Industrial Policy
Delhihasalargepresenceofmanufacturingunitsemployingabout0.6millionpeople,withmajorityofunitsoperatinginthe
unorganizedsector.Asperthe5thEconomicCensusheldinDelhiduring2005,thestatewasranked16thintheAllIndia
ranking,withnumberofestablishmentscontributingabout1.80percentofthetotalestablishmentsinIndia.1 Thestatehas
about28plannedindustrialestatesspreadoveranareaof4,647acres,ofwhich21areunderDelhiDevelopmentAuthority
(DDA)andtheremainingaremaintainedbyDelhiStateIndustrial&InfrastructureDevelopmentCorporation(DSIIDC).2
Thestategovernmentintendstoachieveconsistentgrowthandhasformulatedindustrialpolicytoattractinvestmentinthe
state.ThefirstindustrialpolicyfortheNationalCapitalTerritory(NCT)wasframedin1982withanobjectiveofcreatinga
manufacturingsectorandemploymentopportunitiesinthestate.However,withglobalizationofeconomiesandtechnology
andadvancementbecomingthekeystoneofaneconomydevelopment,thestategovernmenthasformulatedanew
industrialpolicy2009-2021after27yearsofthelastpolicy.
1 EconomicSurveyofDelhi,20082009
2 GovernmentOfNationalCapitalTerritoryofDelhi,DepartmentofIndustries,DraftIndustrialPolicy,2009-2021
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
20
3 GovernmentOfNationalCapitalTerritoryofDelhi,DepartmentofIndustries,ITPolicy,2000
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
21
4 GovernmentOfNationalCapitalTerritoryofDelhi,IndustriesDepartment,SEZPolicy
5 GovernmentOfNationalCapitalTerritoryofDelhi,IndustriesDepartment,TransportPolicy
6 MinistryofExternalAffairs,GovernmentofIndia,ITPDivision,ProfileofDelhi
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
22
ForeignDirectInvestmentInflowinDelhi(INRbillion)
20002005
implementedonly50IndustrialEntrepreneurMemorandums
220.8
(IEMs)withaninvestmenttoINR6.5billionandgenerating
employmentfor4,880people.7
2006
97.8
2007
138.6
2008
93.5
emergenceofpublicprivatepartnershipsprojectsinthestate.The
2009(JanuarytoMay)
101.1
2010CommonWealthGamesinNewDelhihasprovidedan
Theimplementationofindustrialpolicyhasalsotriggeredthe
opportunitytotheprivatesectortobeinvolvedonalargescale
Note:ThedataforDelhiincludesUttarPradesh(UP)andHaryana
fortheoveralldevelopmentofthestate.
Source:IndiaStatandMinistryofCommerceandIndustry,
GovernmentofIndia
GrowthImpetus
Thestateprovidesanenvironmentconducivetobusinesswithqualityinfrastructure,favourablegovernmentpoliciesand
highly-skilledandtrainedworkforce.
Infrastructural development initiatives Thestategovernmentistakinganumberofinfrastructuraldevelopment
initiativessuchasdevelopmentofindustrialparksandestates.Ithasacquired1,300acresoflandofwhichpossessionof
1,065acreshasbeentakenfordevelopingnewindustrialestates.Ithasalsoacquired800acresoflandforthe
developmentofindustrialareas.DevelopmentofurbantransportinfrastructuresuchastheDelhiMetro,freewaysand
betterroadshavealsohelpedmakeDelhiamoreattractivecityforbusinessingeneral.
ThestategovernmenthasmadeDelhiFinancialCorporationresponsibleforfacilitatingvariousclearancesandloans
requiredforsettingupanindustry.
TotalNumberofIndustrialEstateinDelhi(asonMarch31oftherespectiveyears)
2002
2003
2004
2005
2006
2007
2008
2009
29
29
29
31
31
31
28
28
Source:EconomicSurveyofDelhi,20082009
7 MinistryofCommerceandIndustry,SIAStatistics,September2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
23
StatusofEducationalInstitutes
Schools
5022
Colleges
175-degreecolleges
TechnicalInstitutes
46AICTEapprovedtechnicaleducationinstitutions
branches(September2008)ofScheduled
CommercialBanks,anincreaseof14.32percent
ascomparedtothepreviousyear.Thecreditto
depositratioofallscheduledcommercialbanks
Source:EconomicSurveyofDelhi,20082009
was70.49percent,veryclosetotheallIndia
FinancialInstitutionsinDelhi(asonSeptember2008)
StateBankofIndiaanditsAssociates
360
NationalizedBanks
1247
ForeignBanks
40
OtherScheduledCommercialBanks
429
ratioof74.93percent.
Source:EconomicSurveyofDelhi,20082009
8 StateBudget20092010
9 EconomicSurveyofDelhi,20082009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
24
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Ta m i l N a d u
Population
62.4 million (as per 2001 census)
Per Capita Net State Domestic Product
Source:EconomicSurveyofDelhi,20082009
Source:EconomicSurveyofDelhi,20082009
ThePolicyFramework
Highlights of the Industrial Policy 20071
TamilNaduisconsideredaleadingindustrialstateinIndia,andamajormanufacturingcentre.Itisoneofthemostfavored
destinationsbyboththedomesticandforeigninvestors,especiallyinareasofInformationTechnologyandrelated
industries,automobiles,electronics,consumerdurables,garmentsandrealestate.
Tofurtherstimulatethegrowthofindustrialdevelopmentinthestate,thegovernmentintroducedtheIndustrialPolicy2007.
Thekeyobjectivesofthepolicyaretoattractinvestment,facilitatenewmanufacturingcapacityandraisethe
competitivenessandefficiencyoflocalindustry.Otherstatedhighlightsofthepolicyare:
IncreasemanufacturingsectorcontributioninGSDPfrom21percentto27percentby2011
Developanefficientanddependableindustrialinfrastructure
Upgradeinfrastructurefacilitiesbyencouragingpublicprivatepartnershipsinallindustrialclusters,includingwater
supply,power,communicationfacilities,roads,railways,etctoincreasecompetitivenessintheindustry
1 TamilNaduindustrialDevelopmentCorporationLimited,IndustrialPolicy,2007
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
26
2 GovernmentofTamilNadu,ITPolicy
3 GovernmentofTamilNaduHandloomandTextilePolicy
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
27
4 BiotechnologyPolicyOfGovernmentOfTamilNadu
5 GovernmentofTamilNadu,Micro,SmallandMediumIndustriesPolicy2008
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
28
19912006
IEMs
Implemented
2007
2008
2009(UptoAugust)
Number
Investment
(INRbillion)
Number
Investment
(INRbillion)
Number
Investment
(INRbillion)
Number
Investment
(INRbillion)
438
96.4
29
15.6
24
13.7
30
12.1
Source:IndiaStatandMinistryofCommerceandIndustry,GovernmentofIndia
Further,theimplementationofpolicieshastriggeredthegrowthofForeignDirectInvestment(FDI)inthestate.TheFDI
inflowintheChennairegion(includingTamilNaduandPondicherry)increasedfromINR28.9billionin2007toINR29.8
billiontillMay2009.
20002005
2006
2007
2008
2009(TillMay)
52.0
51.9
28.9
58.2
29.8
ForeignDirect
Investment
Source:MinistryofCommerce&Industry,GovernmentofIndia
ThestatehasimplementedtheMicro,SmallandMediumEnterprise(MSMED)Act-2008,whichhasstimulatedthegrowthof
micro,smallandmediumenterprisesinthestate.ThenumberofMSMEhasincreasedby3.5percentfrom0.539millionin
20062007to0.558millionin20072008,whichhasleadtoanincreaseinthenumberofpersonsemployedinthestate.8
Parameter
20052006
20062007
20072008
NumberofRegisteredMSMEs(Million)
0.511
0.539
0.558
InvestmentinFixedCapital(INRbillion)
161.0
168.2
193.6
1,039.1
1,059.8
1,147.2
3.593
3.703
3.946
ValueofOutput(INRbillion)
Employment(Millionnumber)
Source:DepartmentofEconomicsandStatistics,TamilNaduStatisticsataGlance-2008
Further,thepolicyalsoresultedintheestablishmentofanumberofindustrialestates.During20082009about11new
industrialestateshavebeenestablished.Thegovernmentplanstosetupaboutthreenewindustrialestatesfortheyear
20092010.9
6 GovernmentofTamilNadu,IndustriesDepartment,PolicyNote20092010
7 MinistryofCommerceandIndustry,SIAStatistics,September2009
8 DepartmentofEconomicsandStatistics,TamilNaduStatisticsataGlance-2008
9 GovernmentofTamilNadu,PolicyNotes,Micro,SmallandMediumEnterprisesDepartment,20092010
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
29
State-wiseDistributionofApprovedSEZs(asonMarch31,2009)
Formalapprovals
In-principleapprovals
NotifiedSEZs
69
17
47
Source:DepartmentofCommerce,India,SpecialEconomicZones(SEZs)andExportOrientedUnits(EOUs)
1,145
Engineeringeducationalinstitutions
355
Polytechnics
317
Governmentitis
60
AffiliatedPrivateIndustrialTrainingCenters
605
IndustrialTrainingCenters
753
Source:GovernmentofTamilNadu,IndustriesDepartment,PolicyNote20092010
10 GovernmentofTamilNadu,IndustriesDepartment,PolicyNote20092010
11 GovernmentofTamilNadu,IndustriesDepartment,PolicyNote20092010
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
30
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
31
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Karnataka
Population
52.9 million ( as per 2001 census)
Per Capita Net State Domestic Product
Source:EconomicSurveyofKarnataka,20082009
Source:EconomicSurveyofKarnataka,20082009
ThePolicyFramework
Highlights of the Industrial Policy 2009 2014
KnownastheSiliconValleyofIndia,KarnatakaisamongstthetopfiveindustriallydevelopedstatesinIndiawiththe
servicesectorlargelyfuellingtheoveralleconomicgrowth.1
Aimedatpropellingtheoverallsocio-economicdevelopmentofKarnataka,thestategovernmentintroducedtheIndustrial
Policy2006-2009.ThispolicywasfurtherrevisitedtoformthelatestIndustrialPolicy2009-2014.Thekeyobjectivesofthe
policyaretoincreasethegrowthofGDPandexports,strengthenmanufacturingindustries,andgenerateadditional
employmentforatleast1millionpersonsinthemanufacturingandservicesectors.Otherstatedobjectivesandhighlights
ofthepolicyinclude2:
IncreasingtheshareofindustrytothestateGDPto20percentbytheyear2014
Developmentofsector-wiseindustrialzonesforoptimalutilizationoflocalnaturalandhumanresources
1IndiaBrandEquityFoundation(IBEF)
2 KarnatakaIndustrialPolicy,2009-2014
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
33
3IndustryOverview,EconomicSurveyofKarnataka2008-2009
4 TheMillenniumBiotechPolicy
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
34
5StatePolicyforSpecialEconomicZones2009
6 KarnatakaIndustrialPolicy,2009-2014
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
35
2006-2007
2007-2008
2007(Apr.toSept.)
2008(Apr.toSept.)
277
208
113
118
718.44
1676.49
377.13
223.29
10
10
4.06
1.68
0.7
.027
1.a.IEMsFiled
b.ProposedInvestment(inbillions)
2.a.LettersofIntentandDirectIndustrialLicenses
b.ProposedInvestment(inbillions)
Source:TechnicalConsultancyServicesOrganizationofKarnataka(TECSOK)
Further,duringApriltoNovember2008,about9,289smallscaleindustrieswereregisteredgeneratingemploymentfor
63,961persons.
2006-07
2007-08
ApriltoNovember
2007
2008
SSIsRegistered
12,580
14,984
8,398
9,289
Employment
57,517
123,399
76,862
63,961
4.7
11.3
7.0
6.2
Investment(INRbillion)
Source:EconomicSurveyofKarnataka2008-09
GrowthImpetus
Karnatakaprovidesatransparentpolicyframeworkandasupportivebusinessenvironmentwhichisdesignedtoencourage
entrepreneurshipandindustrialization.Thestategovernmentheavilyfocusesondevelopinganequippedworkforce
supportedbyawell-definedindustrialandfinancialpolicies,however,entrepreneurscontinuetociteinfrastructureas
constrainingfactorinKarnataka.
Single Window Clearance Facility -IntheKarnatakaIndustries(Facilitation)Act,2002thestateconstitutedtheStateHigh
LevelClearanceCommitteewhich,actsasthesinglepointofclearanceforSEZdevelopersandco-developers.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
36
ProjectsApprovedbytheStateLevelSingleWindowClearanceCommitteefrom2006-2008(Oct.)
Year
ApprovedProjects
Investment(inbillion)
Employment(InNo.s)
2006-2007
881
119.23
731750
2007-2008
728
103.09
349665
2008-2009
209
33.46
86546
Source:IndustryOverview,EconomicSurveyofKarnataka2008-2009
7InstitutionalFinanceOverview,EconomicSurveyofKarnataka,2008-2009
8 InstitutionalFinanceOverview,EconomicSurveyofKarnataka,2008-2009
9TheStateBudget,EconomicSurveyofKarnataka,2008-2009
10IndustryOverview,EconomicSurveyofKarnataka,2008-2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
37
10IndustryOverview,EconomicSurveyofKarnataka,2008-2009
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
Maharashtra
Population
96.9 million (as per 2001 census)
Per Capita Net State Domestic Product
Source:MaharashtraEconomicSurvey,2008-09
Source:MaharashtraEconomicSurvey,2008-09
ThePolicyFramework
Policy reforms to create the conducive industrial climate in the State
MaharashtraisoneoftheleadingindustrializedandurbanizedstatesinIndia.Itsstrongfinancialinfrastructurehasalso
madeitoneofthemostattractivestatesforFDIinIndia.IthasreceivedaninvestmentofINR750.96billionduring19912008.1 SectorswhichhavelargelygainedbytheFDIintheStateincludeautomobilesandautocomponents,information
technology,consumerdurables,engineering,financialservices,electronicshardware,chemicals,petrochemicals,
pharmaceuticalsandbiotechnology.
Toachievethisconsistentandimpressivegrowthbycreatingafavorableenvironmentforinvestment,theMaharashtra
StateGovernmenthasissuedtheindustrialpolicy.
1DirectorateofEconomics&StatisticMaharashtra,EconomicSurvey,2008-09
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
39
IT Policy to make Maharashtra the most favoured destination for investments in the IT and ITES
Key Features3
GuidetheimplementationofthepolicybyestablishinganEmpoweredCommitteeandaDirectorateofInformation
Technology
Exemptioninstampdutyandelectricityduty,eliminationofoctroiontelecomequipmentforunitsbuiltinITParks
LowerPropertyTaxes-sameasresidentialrates
MinimalSalesTaxratesonlocallyprocuredcapitalgoods
Powersupplyat'industrialrates'
Non-fiscalincentivesincludingadditionalFSI,permittingsoftwareindustryinresidentialareas,suitablepermissionsto
developcommunication
PermissionofflexibilityinworkinghoursandrelaxationofLaborlaws
2GovernmentOfMaharashtra,IndustrialPolicyOfMaharashtra,2006
3GovernmentOfMaharashtra,ITandITeSPolicy,2003
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
40
Subsidy(%)
Limitedto(INRMillion)
Capitalequipment
2.5
Expensesincurredforqualitycertification
50
0.10
Cleanerproductionmeasures
25
0.50
Expensesincurredforpatentregistration
50
0.50
Source:MaharashtraEconomicSurvey,2008-09
4GovernmentOfMaharashtra,BioTechpolicy,2001
5MaharashtraTourismDevelopmentCorporation,TourismPolicy,2006
6GovernmentOfMaharashtra,IndustrialPolicyOfMaharashtra,2006
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
41
PrivateITParks
Number
Investment(INRbillion)
Jobcreation(inmillion)
Functional
53
22.49
0.122
Developmentstage(LOI)
300
158.4
0.65
Source:MaharashtraEconomicSurvey,2008-09
Additionally,theseparatepolicyforbio-techhasenabledthedevelopmentofbio-TechparksintheStateatJalnaand
Hinjewadi(Pune).Apartfromthis,about16biotechSEZsareproposedintheStatewithlikelyinvestmentofINR64billion
andestimatedemploymentgenerationof0.13million.9
GrowthImpetus
Maharashtraprovidesabusiness-friendlyenvironment,qualityinfrastructurewithproactivegovernmentpoliciesandhighlyskilledandtrainedworkforceintheindustrialunits.
Maharashtra -One of the most industrialized state
TheStatesindustrialpolicyhasminimizedtheindustriallicensingrequirements,removedrestrictionsoninvestmentsand
facilitatedeasyaccesstoforeigntechnologyanddirectinvestments.TheCAGRforinvestmentinprojectsregisteredand
commissionedduring2004-05to2008-09is16.1percent.10 Theindustrialinvestmentsinthestateareasfollows:
ApprovedProjects
Category
MOU
Number
Investments(INRBillion)
Employment
113
1234.43
423,811
Source:MaharashtraEconomicSurvey,2008-09
Strong financial infrastructure serves as an entry point for global financial institutions
AccordingtothestudypublishedbyReserveBankofIndia(RBI)in2008-09,thestatecapturedalmost21percentoftotal
investmentproposalsmadeinthecountry.Thestatealsoaccountsfor14percentofthenationalbankdepositsandmore
than90percentofmerchantbankingtransactionsarecarriedoutinMumbai.Mumbaiisemergingasaglobalfinancialhub
andbackofficeformajorcompanieslikeMorganStanley,JPMorgan,CreditSuisse,etc.
7DepartmentofIndustrialPolicyandPromotion,MonthlyMagazine,September2009
8DirectorateofEconomics&StatisticMaharashtra,EconomicSurvey,2008-09
9DirectorateofEconomics&StatisticMaharashtra,EconomicSurvey,2008-09
10DirectorateofEconomics&StatisticMaharashtra,2008-09
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
42
Faculty
Institutions
Capacity
Admittedstudents
Engineering
37
14,130
11,595
ManagementSciences
120
121
HotelManagement&CateringTechnology
120
121
PharmaceuticalScience
10
416
337
IndustrialTrainingInstitutes
407
71,497
61,690
Source:MaharashtraEconomicSurvey,2008-09
Industries
SEZs
ITsector
52
multi-product
17
singleproduct
64
Source:MaharashtraEconomicSurvey,2008-09
11DirectorateofEconomics&StatisticMaharashtra,EconomicSurvey,2008-09
12DirectorateofEconomics&StatisticMaharashtra,EconomicSurvey,2008-09
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
43
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
44
CreatinganEntrepreneurshipCulture
Asnapshotofentrepreneurialleadingpractices
Indiaexertedgreaterefforttopromoteandnurture
Basedonoursecondaryresearchandourinteractionswith
entrepreneurship.Attemptsatvariouslevelshavetaken
thestategovernmentsandentrepreneurswehave
placetodirectlyorindirectlypromoteentrepreneurship.The
attemptedtoidentifysomeleadingpracticesacrossthesix
attemptsfallunderthreemaincategories:removalofstate-
IndianstatesprofiledinthiseditionofEntrepreneurial
imposedbarriersforstartingbusinesses:availabilityof
India.Whilethisisnotanexhaustivelist,theseinitiatives
finances,educationandnurturing.
undertakenbyvariousstatesexemplifytheirrespectivewill
tocreateopportunitiesforgrowthbyenablingcrosssector
Indiasjourneyfromaslowgrowth,highly-regulated
development,inclusivegrowth,improvedefficiencyor
economytoahigh-growthcountryisnowwellknown.
marketalignment.Theleadingpracticeslistedbeloware
Manypoliciesandregulationshavefallenbythewayside
specifictoaparticularstate;however,thesecanbe
overthelasttwodecades,butmanyimpedimentsto
replicatedbyotherstatesinthecountrytofoster
startingandgrowingabusinessremainwellentrenchedif
entrepreneurialgrowth.
notinpolicy,theninpractice.
Apositivedevelopmentofeconomicgrowthandchangein
mindsetwithinthegovernmentisthatthereisnow
recognitionatthenationalandstatelevelthatabusiness
friendlyenvironmentisamusttoencouragegrowth.
Businesses,entrepreneursandcapitalaremobileandcan
andarelikelytomoveawaytofriendlierstatesand
countriesifdoingbusinessinanyjurisdictionisdifficult
beyondapoint.Indianowcompeteswiththeworld,within
itsregionandwithitself.
Leading Practice
Owner State
Focus
Leveragesynergybetweenagroandindustrialsector+Apply
technology
Punjab
Cross-Sectordevelopment
Conductingworkshopsandtrainingsessionsonapplicationofclean
Punjab
biotechtechnologiestocreatepublicawarenessaboutbiotechnology
Futuristicdevelopment
Creatingagri-clinicsandagri-businesscentresthroughoutthestate
toserveasnodalcentresforinformationdisseminationfor
maximizingRoIforfarmers
Punjab
Marketalignmentandvalueaddition
Maharashtra
BalancedGrowth
Maharashtra
Internaldemandcreation
NewindustriesestablishinginC,D,D+areasandnonindustry
districtsareexemptedfrompaymentofelectricitydutyfora
periodof15years
WaiverofstampdutyforindustriesinC,D,D+areasandnon
industrydistricts
MinimalSalesTaxratesonlocallyprocuredCapitalgoods
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
45
Leading Practice
Owner State
Focus
Promotetheusageofe-governancetosupportthegovernmentto
deliverefficientservicestoitscitizens
Delhi
Efficiencyandtransparency
ControllingpollutionbyprovidingCNGbuses,strengtheningthe
pollutionnorms,introductionofstrictinspectionandcertification
systems
Delhi
Environmentalimprovement
Thestateishostingthe2010CommonwealthGames,whichislikely
toprovideitanopportunitytoaugmentitsinfrastructureandfacilities
inturningitselfintoa"WorldClassCity
Delhi
Megadevelopment
Strongfocusonthedevelopmentofskilledworkforce
Delhi
Economicenabler
FocusonSpecialInvestmentRegions(SIR)andInvestmentRegions
(IR)withconvergenceofindustrial,socialandurbaninfrastructure
Gujarat
TheGovernmentofGujarat(GoG)hasincorporatedGujarat
KnowledgeSocietyandplanstosetupknowledgecorridorsfor
highereducation
Gujarat
Megadevelopment
Economicenabler
Micro,SMEpolicy:
Allotmentof50percentgrantsubjecttomaximumofINR10
milliontotheMSMEsfortheacquisitionoftechnologyinanyform
Gujarat
FuturisticDevelopment
AssistancetoR&Dinstitutionsupto60percentoftheprojectcost
excludinglandcostandbuildingcost
Lucrativeemploymentandperformancelinkedpackageofincentives
andconcessionstoattractinvestmentstobackwardregionsandthe
MicroSmallMediumEnterprises(MSME)sector.
Karnataka
BalancedGrowth
Biotech:Megaprojectswillbeofferedauniquepackageof
concessionsforamaximumperiodof8years.Theywillalsobe
offeredupto50percentconcessiononstampdutyandregistration
chargesforfirstsaleandfirstlease
Karnataka
Futuristicdevelopment
SEZswillbedeclaredasindustrialtownshipsundertheKarnataka
Municipalities(Third)AmendmentAct,2002enablingthemto
functionasselfgoverningandautonomousmunicipalbodies
Karnataka
Efficiency
Karnatakahasadevelopedbankingnetworksystemwhichextends
toboththeurbanandruralareas.
Karnataka
Economicenabler
FinancialassistancetotechnologyinnovatorsorstandaloneR&D
unitsorindividualsforinnovationscapableofindustrialapplication,
upto50percentofthecostoffilingapatentorINR0.2million,
whicheverisless
TamilNadu
Futuristicdevelopment
CreationofITESParksinChennaiandotherTierII/TierIIIcities
TamilNadu
BalancedGrowth
Apparel:Focusonhandloomexportsbyencouragingtheweaversto
bringoutexport-orientedproducts
TamilNadu
MarketAlignment
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
46
GlobalExperience:Asnapshotof
entrepreneurialleadingpracticesinIsrael,
SingaporeandthePhilippines
Asweunderstandthegoodpracticesbeingfollowedin
Indianstates,itisimperativetobenchmarkourstateswith
someofthemoreentrepreneurialeconomiesaroundthe
worldandunderstandtheirrespectivepracticestofoster
entrepreneurialgrowth.
InAmerica,astudyshowsthateveryyear,therewere
600,000newfirmsformedand1,000ofthemwould
ultimatelybecomehigh-growthcompanies,contributingto
1/3oftheGDPgrowth.InSingapore,SMEsaccountfor2/3
ofjobscreatedandmorethanhalfoftheirGDP.
Theseeconomieshavecreatedaveryconducive
environmentforentrepreneurship.Thesmallercompanies
andstart-upsinSingaporeenjoytheworldslowesteffective
taxrates.Ittakeslessthan15minutesandUSD300to
registeracompanyinSingapore.Singaporehasbeen
rankedbytheWorldBankastheworldseasiestplacetodo
businessforthreeyearsrunning.
SimilarlyinthePhillipines,4outof10adultFilipinos,aged
18to64areengagedinbusiness,whichapproximates
around19million(39.2percent)ofthewholecountry
population.ThisranksthePhilippinessecondamong
countrieswithmostindividualsowningabusiness
accordingtotheGlobalEntrepreneurshipMonitor
Further,Israelisattheforefrontoftechnology.Israelis
knownasSiliconValleyII.Thereareover100Israeli
businessesthattradeontheNYSE,NASDAQ,andAMEX
equitymarkets.OutsideofCanada,thereisnoother
countrythathasmorecompaniesrepresentedThisisa
tremendousachievementforasmallcountrylikeIsrael.
Thekeypracticesmentionedinthefollowingtablehave
beenusedintheseeconomiestoestablisharobust
entrepreneurialecosystem.Thesecountrieshavebenefited
greatlyfrompromotingentrepreneurialgrowth.These
practicesaresetoutasexamplesofpracticesthatcanbe
incorporatedbyIndia.It'sforIndianowtoadopttherelevant
practicesinaphasedmannerandstartanentrepreneurial
revolutionacrossthelengthandbreadthofthecountry.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
47
Leading Practice
Owner Country
Focus
Technologicalincubators-Incubatorsthatprovideasupportive
frameworkfortechnologicalideasbyentrepreneur.Providingupto
85percentoftheapprovedR&Dexpenditure.
Israel
FinancialEnabler
Governmentseedfund-governmentmatchinginvestmentinastartupcompany,proportionaltotheinvestmentofaninvestingentity
Israel
FinancialEnabler
Entrepreneurfriendlyprocedures.Ittakeslessthan15minutesand
USD300toregisteracompanyinSingapore.Singaporehasbeen
rankedbytheWorldBankastheworldseasiestplacetodo
businessforthreeyearsrunning.
Singapore
Efficiency
TheTechnologyEnterpriseCommercializationScheme(TECS)USD
50milliontohelpstart-upscreatetheirfirstprototypesformarket
trialsandacceptance
Singapore
Marketalignment
YoungEntrepreneurScheme(YES)fundstohelpschoolsdevelop
entrepreneurshiplearningcontents
Singapore
FuturisticDevelopment
Start-upEnterpriseDevelopmentScheme(SEEDS),whichprovides
equityfinancingwiththird-partyinvestorstosmallstart-ups.
Singapore
FinancialEnabler
Philippines
Overalleconomicdevelopment
Promotionofmutuallybeneficiallinkagesamongsmallandlarge
firms:Promotionofindustrial-subcontractingexchangeschemes,
strengtheningofSMEassociations,establishmentoflinkagesand
cooperationbetweensmall,mediumandlargefirms
Philippines
Innovativegrowth
Improvingaccesstofinance:Innovativefinancingschemesusing
non-traditionalsourcesandschemessuchascooperativesand
associations,and,equityfinancingandventurecapital,respectively.
Philippines
Innovativegrowth
Informationsharing:Strengtheningofprimaryfocalpointsfor
deliveringinformationservicesrelatedtoexportsuchasthe
PhilippineTradeInformationandNetworkSystems(PHILTINS)and,
OneStopExportInformationAssistanceCenter(EXPONET)
Philippines
Marketalignment
MagnaCartaforSmallEnterprisesisalandmarklegislation.ThisLaw
isguidedbythreeprinciplesinsettingthepaceforsmalland
mediumenterprisedevelopment:
-Minimalsetofrulesandsimplificationofproceduresand
requirements.
-ParticipationofprivatesectorintheimplementationofSME
policiesandprograms
-Coordinationofgovernmentefforts
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
48
ConclusionandPolicyImplications
Insummary,policyand
implementationshouldhelpsupport
thefollowingobjectives:
Improve the quality, availability and
accessibility of financing
Inparticular,deliberateeffortsare
neededtomakebanksandangel
networksmoreresponsivetothe
particularneedsofstartup
enterprises.Whilefinancing
consistentlyemergesasthetop
challengeoffirms,especiallynascent
businesses,thereisaneed,to
developviableapproachesthatwill
Despitepositivebusinesssentimentinthecountryanda
bullishattitudetowardsenterprise,entrepreneursinthe
countrystillfacetremendouschallenges.Whilethecountry
hasseenasurgeinentrepreneurialactivityintherecent
pastmuchscoperemainsforimprovingentrepreneurship
qualityandmomentum.
Equalimportanceneedstobegiventoeffortsfocusingon
futureentrepreneurs.Entrepreneurshipisrootedin
education,culture,valuesandattitudesthatmustbe
makeprovisionofstart-upfinancing
moreattractivetobankswhileatthesametimemakingit
moreattractiveforbusinessestomakeuseofthebanking
system.Establishmentofangelnetworksperhapsas
partnershipsbetweengovernmentandentrepreneurscan
playacriticalroleinfinancingaswellasunderstandingthe
uniqueneedsofyoungenterprises.
Enhance business growth potential of existing
companies
nurturedfromanearlyage.Accordingly,itneedstobe
Thereisaneedtoassistexistinghighpotentialbusinesses
imbibedandunderstoodonthebasisofitsdeeper
inrealizingthatpotential.Animprovedbalanceandplanned
significancebeyondincomegeneration,includingitsrolein
approachtoindustryincentivesandpromotionacross
fosteringgreaterindependence,prideandgoodcitizenship.
industriesandashifttovalueadditionshouldbe
encouragedtoappropriatelyrespondtotheneedsofthe
Thus,atwo-prongedpolicyeffortshouldbeconsideredin
marketandeventuallyexpandwithitsopportunities.Policies
addressingenterprisedevelopment.Thatis,policies,
andinterventionsshouldtakeaccountoftheresourcesand
programsandinterventionsshouldfocusonbothimproving
marketcharacteristicsofspecificregionsandutilizetheseto
existingbusinessesanddevelopingthecapacityoffuture
maximumadvantageinordertofocusgovernmentsefforts
entrepreneurs,therebycreatingmoreopportunities.Inboth
cases,ageneralimprovementofentrepreneurial
frameworksisnecessarytoprovideamoreconducive
environment.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
49
Ontheotherhand,addressingfutureentrepreneursentails
interventionsfocusedoneducationandtrainingtoimprove
bothattitudesforsuccessfulandeffectiveentrepreneurship
andskillsforenterprisemanagementandoperations.
Increasedcontactbetweenentrepreneursandschoolsand
collegeswillpartlyenhancetheentrepreneurialmindset
studentsandallowthemtoconsiderthepossibilitiesof
entrepreneurshipatanearlyage.
ratepolicies)andassistanceinexportmarketpromotion.
Strengthen entrepreneurial values and attitudes
Emphasize the critical role of state governments
Stategovernmentsneedtoplayastrongerroleinenterprise
promotion,supportanddevelopment.Whilecertainlarger
businesssupportprogramscanbeeffectivelyrunbythe
nationalgovernmentagencies,stategovernementsare
better-placedtoprovideaconduciveenvironmentfor
enterprisedevelopment.Aspartoftheireffortstoexpand
theirlocaleconomiesandreducepovertyamongtheir
populace,governmentsneedtotakeaproactivebusiness-
Thereshouldbeadeliberateefforttotransformthe
educationalsystematalllevelstofosteran
entrepreneurshipculture,throughcurriculumdesignand
appropriatepedagogicalapproaches.Schoolsmustlead
studentstoaspirenotonlytoseekjobsupongraduation,
buttocreatejobs;notjustearnincomes,buttocreate
wealth.Educationmustalsoinstillasenseofinnovationand
risk-taking,inordertoovercomesomeofthetraditional
barrierstoenterprisedevelopment.
promotionorientation,facilitatebusinessopportunities,
eliminateunnecessaryobstaclestosettingupabusiness
andprovideanencouragingenvironmentforhealthy
businessgrowth.Consequently,stategovernments
themselveswouldneedtrainingonhowtoeffectsuchan
entrepreneurialorientation,alongwithconcreteapproaches
andmechanismsforcreatingabusiness-friendly
environment.
Conclusion
ThereareampleopportunitiesforenterprenursinIndiaand
Practicalandcosteffectiveprogramsneedtobedeveloped
suchopportunitiesifleveragedhavethepotentialto
toaddresstheirneedsbecauseself-employedpeoplewill
transformIndia.Forsuchtransformationtohappenthere
representanimportantsegmentineconomicrevitalization.
needstobesupportbothatthegovernmentalandsocietal
Aresponsive,decisiveandopengovernmentiscriticalto
level.Forthegovernmentitisimportanttorealizethatthe
rapidentrepreneurialgrowth.Itisincumbentonboth,the
goalofsmallbusinessownersistoremainself-employed.
entrepreneurandthegovernment,torecognizethata
Suchpeoplemaynotneedfinancialassistancebuttheyare
symbioticpartnershipisnecessarytohelpthegrowthof
definitelylikelytoneedregulatory,marketingandlegal
businessandofthenation.
assistanceinordertosustainthemselvesandgrow.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
50
Aboutthestudy
ThethirdeditionofEntrepreneurialIndia2009isaresearch
UnlikepaststudiesonIndianentrepreneurshipwhich
paperwhichassessestheinitiativesofselectIndianstates
surveyedentrepreneursacrossthecountry,thiswhitepaper
toencourageentrepreneurialgrowthandputforththebest
studiesselectIndianstatesindetailandbringforththe
practices.Thewhitepaperaimstoprovideaplatformto
statesperspective.Thispapershouldallowustoreassess
discussonentrepreneurshipdevelopmentandcontributeto
andrenewoureffortsinaddressingthesituation.Thestudy
shapingpolicybybringingtogethertheviewsof
alsobringstogetherthedatathatcanbefurtherstudiedfor
entrepreneursandstategovernments.
pursuingspecialpolicyfocus.
Thestudyendeavorstouncoverfactorsleadingto
Throughthisstudy,TiEandKPMGhopetocontributeto
appropriatelevelsofEntrepreneurship.Thestudyevaluates
craftingmoremeaningfulpoliciesandprogramsthatwill
theperspectiveofIndianstatesandtheirinitiativestowards
continuetoinspiremoreandmoreIndianstohavean
entrepreneurialdevelopmentononehandwhileevaluating
entrepreneurialmindsetanddevelopastrongercapacityto
theperceptionofentrepreneursoftheseinitiativesthrough
grabtheopportunitieswehavenow.
theirviewsonnationalstrengthsandweaknessesasa
contextforentrepreneurshipontheother.The
entrepreneursindicatewhatpolicyorprogramchangesthey
believewouldenhancethecountrysenvironmentfor
entrepreneurship.Italsoattemptstoestablishthebest
practicesacrossIndiatofosterentrepreneurshipwhilealso
benchmarkingwithsomeoftheglobalbestpracticesin
entrepreneurialeconomiessuchasSingapore,Philippines
andIsrael.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
51
AboutKPMGinIndia
KPMGisaglobalnetworkofprofessionalfirmsproviding
KPMGhasofficesinIndiainMumbai,Delhi,Bangalore,
Audit,TaxandAdvisoryservices.Weoperatein140
Chennai,Hyderabad,Kolkata,PuneandKochi.Thefirmsin
countriesandhave135,000peopleworkinginmember
Indiahaveaccesstomorethan2000Indianandexpatriate
firmsaroundtheworld.Theindependentmemberfirmsof
professionals,manyofwhomareinternationallytrained.We
theKPMGnetworkareaffiliatedwithKPMGInternational,a
strivetoproviderapid,performance-based,industry-focused
Swisscooperative.EachKPMGfirmisalegallydistinctand
andtechnology-enabledservices,whichreflectashared
separateentityanddescribesitselfassuch.
knowledgeofglobalandlocalindustriesandourexperience
oftheIndianbusinessenvironment.
TheIndianmemberfirmsaffiliatedwithKPMGInternational
wereestablishedinSeptember1993.Asmembersofa
cohesivebusinessunittheyrespondtoaclientservice
environmentbyleveragingtheresourcesofaglobal
networkoffirms,providingdetailedknowledgeoflocal
laws,regulations,marketsandcompetition.Weprovide
servicestoover2,000internationalandnationalclients,in
India.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
52
AboutTiE(TheIndusEntrepreneurs)
TiEinits17yearsofexistence,hastodayemergedasthe
worldslargestnon-profitglobalnetworkofEntrepreneurs
Educating-Inspiresandeducatesbudding
entrepreneurs
andprofessionals,dedicatedtotheadvancementof
entrepreneurship.
Mentoring-Providesrolemodelsandone-on-one
mentorshipthroughexperiencedentrepreneursand
With53chapter(15inIndia)across13countriesand
15,000+membersworldwide,TiEoffersarichresourcepool
toanentrepreneur.
supportsystemlikeVCs,serviceproviders
NetworkingHoldsregularconferences,workshops,and
networkingmeetingsprovidingaplatformtoforge
relationships.e.g.15TiEchaptersinIndiacollectively
TiEsmissionistofosterconsciousentrepreneurship
roll-out300+programsforentrepreneurseveryyear.
globallybyEducating,MentoringandNetworking:
AboutTiEMumbai
TiEMumbaiisamongthemostvibrantandfastestgrowing
Activepartnershipswithorganisationswithashared
entrepreneurialeco-systemsintheGlobalTiENetworkwith
focusontheSMEsegmente.g.ICICIBank,SIDBI,
afastexpandinganddiversememberbaseof150+Charter
KPMG,CII,FICCI,Academia(IIT,Welingakr,SPJainand
Membersand700+members.
manyothers),andvariousotherprivateandPublicsector
agencies/bodies
Purposeaboveactivitytoconstantlychallengestatus
quoandbuildinnovative,sustainableplatforms
/programstofosterentrepreneurshipthroughadvocacy,
awarenessandassistance
MENTORINGarobustandfocusedprogramcalled
EntrepreneurNurturingProgram(ENP)withadedicated
andactivevoluntarybaseofMentorsguidingagrowing
baseofMentees(Entrepreneurs)
50+programsannuallythroughvoluntarycollaboration
andparticipationfromavibrantandinclusive
membership
SpecialInterestgroupssuchWomenEntrepreneurship,
Cleantech,SocialEnterprise,Tech&Media,Human
Capital.
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
53
Acknowledgment
ThisreporthasbeenpreparedbyTiEandKPMGinIndiato
SecondaryResearch
belaunchedattheTiEEntrepreneurialSummit(TES)on
21-23December2009inMumbai
KunalJain,RuchikaAnand,PallaviPhatak,NishthaSatyam
(KPMGinIndia)
OverallLeadership
DesignandBrand&RegulatoryCompliance
Valuableguidancewasprovidedinpreparingthisreportby
VikramUtamsingh(KPMGinIndia),PradipKanakia(KPMGin
JitenGanatraandNishaFernandes(KPMGinIndia)
India),JehilThakkar(KPMGinIndia),SridarIyengar
(President-TiEMumbai),VimalShah(AkrutiCity),Pradeep
SpecialThanks
Udhas(GreaterPacificCapital),ChiragMehta,AnuSutaria,
PuneetVatsayan,ShivneetSingh,PradeepGupta,Geetika
Toallgovernmentofficialsfromthesixstatesprofiledinthe
Dayal,PradeepKar,R.Ramaraj,ManakSingh(allfromTiE)
study,PradipKanakia,VivekAtray,ManishAgarwal,Manish
Sharma,SameerBhatnagar,PradeepSaluja(allfromKPMG
EditingandReportCreation
inIndia)andallTiEchaptersinIndia.
JehilThakkar,ManikaJauhari,NehaSangal(KPMGinIndia)
2009KPMG,anIndianPartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
in.kpmg.com
KPMGContacts
TiEChaptersinIndia
Vikram Utamsingh
Head - Markets
+91 22 3090 2320
vutamsingh@kpmg.com
Ahmedabad
badri.mahapatra@ahmedabad.tie.org
+91 79 3294 3095
Kerala
tiekerala@yahoo.com
+91 484 324 8735
Bangalore
info@tiebangalore.org
+91 80 4147 4567/69
Kolkata
tie.kolkata@gmail.com
+91 33 6454 3361
Chandigarh
info@tiechandigarh.org
+91 172 500 7000
Mumbai
info@tiemumbai.org
+91 22 4220 0100
Chennai
sharon.henry@chennai.tie.org
+91 98842 84578
Nagpur
info.nagpur@nagpur.tie.org
+91 712 646 4066
Delhi
info@tienewdelhi.org
+91 120 406 6500
Patna
tie_bihar@yahoo.com
+91 612 222 1374
Hubli
santosh@nsinfotech.com
+9198807 65246
Rajasthan
zulfi@tiejaipur.org
+91 141 510 4464
Hyderabad
info@tiehyderabad.org
+91 40 6451 3397
UP
rajesh.wahie@up.tie.org
Jehil Thakkar
Executive Director
Markets
+91 22 3090 1670
jthakkar@kpmg.com
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particularindividualorentity.Althoughweendeavortoprovideaccurateandtimelyinformation,therecanbeno
guaranteethatsuchinformationisaccurateasofthedateitisreceivedorthatitwillcontinuetobeaccurateinthe
2009KPMG,anIndianPartnershipandamember
firmoftheKPMGnetworkofindependentmember
firmsaffiliatedwithKPMGInternational,aSwiss
cooperative.Allrightsreserved.
future.Nooneshouldactonsuchinformationwithoutappropriateprofessionaladviceafterathoroughexaminationof
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