iNDEXTb

DESTINATION GUJARAT

India – The Favoured Investment Destination
Strong Economy
Real GDP US$ Billion 4% Real GDP Growth Rate 1,500 1,000 500 -

7%

10% 8% 6% 4% 2% 0%

2006

Year

2009

2003

2004

2005

2007

2008

• • • •

Trillion dollar economy - world’s 12th largest 53% of GDP from service sector 29% of GDP from manufacturing sector Annual growth of 7% during global economic slowdown
Source: Economic Survey of India

Manufacturing Sectors attracting highest FDI (2000-2009)

• •

FDI Destination

Second most favoured destination for FDI FDI inflow grew an average of 9% during global economic slowdown US$ 19 billion FDI inflow between April – November 2009
Top FDI Destinations of the World
Rank 1 2 3 4 5 Countries China India United States Russian Federation Brazil

Computer Software and Hardware Telecommunication Real Estate Construction

Pharmaceuticals and Chemicals

India ranks at the top on availability of skilled manpower, access to local and international markets and strong market fundamentals
Source: DIPP; WIPPS 08-10, World Competitiveness

WHY GUJARAT

“I have attended many summits but never have seen such a summit. I am a little worried seeing too much investment flowing to Gujarat, what would be left for rest of the country?” Mr. Sunil Bharti Mittal CEO, Bharti Group

Gujarat is all about Trade with Tradition, Commerce with Culture, Enterprise with Entertainment and Development with Disaster management. Desire + stability = Resolution Resolution + Hard work = Success”

“This is a special investors’ summit which the people of Japan are watching. They are expecting a lot from India, a lot from Gujarat.”

Mr. Narendra Modi Chief Minister, Gujarat

Mr. Heizo Takenaka Former Minister, Japan

“I have to say that today there is no state like Gujarat. Under Mr. Modi’s leadership, Gujarat is head and shoulders above any state.” Mr. Ratan Tata Chairman, Tata Group

Strategic location .

600 km coast line – one fourth of India‟s water front – offers numerous opportunities for port based industries . Africa. Middle East.Access to major international and domestic markets 1 Located on the west coast of India and connected to major ports of UK. East Asia and Australia Gateway to land locked states in India 1.

Home to most ambitious projects .

and Marine products  India‟s first state to enter Carbon Trading Agreement with World Bank  India‟s first two LNG terminals at Hazira and Dahej  India‟s first chemical port at Dahej  India‟s only state to have an integrated StateWide Gas Grid  India‟s largest copper Smelter 2 . Chemicals and petrochemicals  World‟s largest centre for polished Diamonds  World‟s largest producer of Psyllium husk. Fennel seeds and Castor  World‟s largest grass root petroleum refinery  India‟s largest producer of Salt. Soda ash.An indication of Gujarat‟s strong economy  India‟s largest producer of Drugs.

372 billion (US$ 75 billion) Population: 58 million Population GSDP CAGR (2004-09): 10.An indication of Gujarat‟s strong economy      Gross State Domestic Product : INR 3. of factories 10% Net Manufacturing value Value of output Fixed capital investment Exports 12% 80% 80% 16% 17% Chemicals Pharmaceuticals 22% 42% Gujarat's share in India Source: Socio-Economic Review.4 % Geographical area Per Capita Income: INR 33.608 (US$ 1094) Urbanisation: 37. Gujarat State 2009-10 .4% Contribution of Gujarat to India .sectors Salt processing Diamond… Plastic Industry Petrochemicals 65% 62% 51% 2 5% 6% No.

72% Chattisgarh . GSDP growth of more than 10% West Bengal since 2004 5.An indication of Gujarat‟s strong economy  Highly industrialized state.0% one of the highest number of proposals in India 5.0%  Creating value for investors. around 22% of Indian exports contributed by Gujarat Total IEMs Filed in India  An economy on the boom and beating (1991-2009) recession.91% 6. state with highest number Madhya Pradesh 6.71% Others 17.38% Jharkhand Andhra Pradesh Chhattisgarh 12.91% Maharashtra 9. ranked as the best state for investment approved by financial institutions  Top contributor to Indian economy.80% 2 Realization as percentage of total number of IEMs filed Tamil Nadu Karnataka Orissa Gujarat 12. state with the 10. with 38% of GDP 20.02%  Delivering promises.0%  Sustained investor confidence.0% 0.61% 8.64% Orissa 12.0% contributed by secondary sector 15.30% of IEM realization Karnataka  Pioneer in Public-Private Partnership projects Madhya Pradesh Gujarat Andhra pradesh Uttarpradesh Maharashtra 7.

social and industrial infrastructure .Robust physical.

to create continuous water supply throughout the state . One of the states with highest teledensity The only Indian state with an integrated state-wide Gas Grid State with the highest number of airports and second highest number of ports The Sardar Sarovar Narmada river linkage project.Physical infrastructure 3 A power sufficient state with one of the highest per capita power consumption Excellent road and rail network.

446 units Projected to become a power surplus state by 2012 assuring high quality power supply Telecom Gas . rail and air ways. network of over 2.038 km (National Highways 2.636 MW (October 2009) Electricity generated – 68.962 MU Per capita consumption of electricity – 1.600 Km coastline .309 km.one fourth of nation „ s waterfront 1 Major Port at Kandla and 41 minor ports – Kandla port handled 72 million MT and minor ports handled 150 million MT of cargo in 2008-09. Road network . Major District Roads.Physical infrastructure 3 1. Cost efficient transportation of natural gas.). city gas distribution and LNG re-gassification infrastructure Source: Socio-Economic Review. Gujarat State 2009-10 Electricity One of the states with highest tele density Many IT Parks – Gujarat State wide Area Network being implemented for the state government Excellent internet connectivity Ports 12 domestic airports (highest in the country) and 1 international airport (Ahmedabad) Introduced Solar Power Policy 2009 Installed capacity – 11.867 km.200 km Only state in the country to have two LNG import terminals Leads all other states in the country in terms of gas pipeline for industrial use. State Highways (18.5.Wide Gas Grid.20.74.707 km Only state to have an Integrated State. crude oil and petroleum products from Middle East and Europe Transport Well connected by road. Extensive railway network .702 km.

Abundant natural resources .

limestone and clay deposits in India 4 Limestone Bauxite Lignite Dolomite Silica Sand Base metal Chalk China clay Fluorspar Fireclay Granite Manganese Marble Quartz Wollastonite Bentonite .9 million tonnes) in India  It is the second largest producer of onshore natural gas (2.000 Million tonnes  One of the highest reserves of bauxite.055 billion cubic metres of natural gas  Gujarat produces the largest volume of crude oil (5.Natural resources  Gujarat has got large natural reserves of oil and gas. It has a reserve of 725 million tonnes of crude oil and 1.6 billion cubic metres) in India  A mineral rich state both in terms of capacity reserves and production  Has a total mineral reserve of more than 19.

A large pool of qualified human resources .

reducing infantile mortality and primary education support . engineering and design  Focus on tertiary education and vocational courses  Availability of high quality health care facilities  The land of entrepreneurs who are spread across the globe 5  Government initiated schemes for women empowerment.Human capital  Availability of large pool of high quality human resources for all sectors  Home to some world renowned institutes in management.

000 students enrolled in higher education.Human capital 5 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 MBA MCA Engineering Diploma Engineers Pharmacy 2008-09 2009-10 More than 30. Seats availability Source: Socio-Economic Review.000 Engineering and 45. Gujarat State 2009-10 .000 diploma engineering seats available More than 900 higher education institutions in the state for quality manpower More than 500.

World class institutions of higher learning 5 Pharmaceuti cal Engineering and Communicati on Knowledg e An Education Hub Manageme nt Chemical Law Fashion and Design .

Business friendly policies .

2 0.1 .6 1 1 Drugs & Pharmaceuticals Industrial Machinery 0. SIR and Industrial Area development  Subsidies for environment protection  A leader in encouraging private participation under public-private partnership  Taxes at par with other business destinations  Globally cost competitive labour force  State with least man-day loss Investment in sectors (1991-2010) Chemicals & Petrochemicals Infrastructure Projects Other Engineering Glass. Ceramic & Cement 37 9 9 Others Electrical Tele & Electronics Metallurgical Industry 9 4 4 Textiles Transport Equipment Food Processing 1.Doing business in Gujarat 6 Investments under implementation (USD billion) 27  Favorable policy and regulatory environment  Industrial Policy 2009– for high quality socio economic development  Sectoral policies for promotion of investment and growth  Incentives under SEZ.

S. China Brazil China USA .12.000. VAT/GST Japan France Germany Corporate tax Minimum income tax Gujarat Maximum income tax Turkey U. making Gujarat extremely competitive.22 % (42. •Rate of 10-30 % based on income slab. 6 Minimum wages ( USD/month) 2000 1000 0 1557 204 1700 363 358 1431 122 1014 70 820 267 Malaysia United Kingdom Germany Russia Australia Taxes in India are broadly •Value added tax.K.23% for foreign entities) • Personal income tax•No tax on annual income below USD 3.A.Competitive destination Gujarat has one of the lowest levels of minimum wage which is around USD 120.33.5 % •Corporate tax. 60% 50% 40% 30% 20% 10% 0% Brazil Australia Tax implication Gujarat Turkey Japan Russia U.

Land availability for industrial purpose .

SEZ • Multi product • Single product Phase 2 • Multi Service • 257 Industrial (IT/ITES) estates 7 Phase 1 • 83 product clusters Phase 4 . and information technology Phase 3 . creating opportunities across sectors  38% of the planned Delhi Mumbai Industrial Corridor route is through Gujarat  Development of new industrial areas for agro parks.Development of integrated industrial regions  12 Special Investment Regions of more than 100 sq km each being planned  1 Petrochemical and Petroleum Investment Region. tourism and recreation. 55 Special Economic Zones and existing 200 industrial areas.Large scale developments • Delhi Mumbai Industrial Corridor • Special investment regions • Petroleum. chemical and petrochemical investment regions • Knowledge corridor • Industrial Area/ Region • GIDC Estate • Logistics parks • Theme towns .

DMIC project 7 A high impact industrial area within 150 km distance on both side of the Dedicated Freight Corridor (DFC). with an investment potential of US$90billion Delhi Mumbai Industrial Corridor (DMIC) to be developed as „Global Manufacturing & Trading Hub Proposed Location Industrial Area Industrial Area Industrial Area Industrial Area Investment Region Investment Region Palanpur-Sidhpur-Mehsana Vadodara-Bharuch Surat-Navsari Valsad-Umbergaon Ahmedabad-Dholera Bharuch-Dahej Phase 2012 2008 2012 2012 2012 2008 Proposed Logistic Park Palanpur Mehsana Industrial Area VadodaraAnkleshwar Industrial Area Bharuch-Dahej Investment Region Surat Navsari Industrial Area Valsad Umberga on Industrial Area Ahmedabad Dholera Investment Region .

Single window clearance for projects.Special Investment Regions (SIRs) – regulatory framework 7    First state to have passed SIR ordinance. Each investment region is of more than 100 sq km area. OKHA ANJAR SANTALPUR SANAND NAVLAKHI DHOLERA HALOL SAVLI CHANGODAR PCPIR HAZIRA ALIA BET   SIR ordinance empowers state to set up various project development authorities. GIDB the Apex Authority – to regulate and approve projects of Regional Development Authority. Regional Development Authority PIPAVAV  Apex AuthorityGIDB SIMAR Project Development Authority Project Specific SPV Source: GIDC . 13 SIRs have been proposed in the state.

9 Million people .Special Economy Zones 7 Multi Product SEZ Electronics and IT / ITES Engineering Pharmaceuticals Chemicals Apparel and Textiles Others Biotech Gems and Jewellery Handicrafts and Artisan Non Conventional Energy Ceramic SEZ (GIDC) Multi Services (GIFT) FTZW (LMJ Warehousing Pvt Ltd) Port based Multi Product SEZ Source: Industries Commisionerate of Gujarat 10 16 9 4 4 4 8 1 1 1 1 1 1 1 1 55 SEZs in various stages of implementation 10 Functional SEZs 24 Notified SEZs 14 Formally approved SEZs 7 In principle approval Total area under SEZs 30121 Hectares Proposed employment 1.

(ONGC) and Gujarat State Petroleum Corporation (GSPC) to act as anchor tenant Dahej SEZ Limited. Jhagadia.Petroleum Chemical & Petrochemical Investment Region (PCPIR) 7 PCPIR is a specifically delineated investment region planned for the establishment of manufacturing facilities for domestic and export led production of petroleum. Panoli and Onsite chemical port terminal & LNG terminal at Dahej ONGC Petro Additions Ltd (OPaL) JV company promoted by Oil and Natural Gas Corporation Ltd. chemicals and petrochemicals  Spread over 453 sq km of brown-field area in the coastal belt of Gulf of Khambhat in Bharuch District In close vicinity of other existing GIDC chemical estates. viz. Ankleshwar. a joint venture company of ONGC and GIDC to develop the petrochemical SEZ    .

Petroleum Chemical & Petrochemical Investment Region (PCPIR) 7 PCPIR: Unique Selling Proposition Export promotion measures Chemical port terminal and chemical storage facility at Dahej Well established infrastructure Proposed SEZ by GIDC at Dahej & Jhagadia Proposed SEZ in private sector by Jubilant Quality work force Peaceful labor. Chemical and Petrochemical estates across the district Rich natural resources and feedstock availability . Least man days lost Regulatory Framework Gujarat SEZ Act Liberal SEZ policy Gujarat Infrastructure Development Act Notified Area Authority under GID Act. Area Development Authority under Town Planning Act Availability of natural resources Concentration of Petroleum.

it is being developed “Gujarat International Finance Tec-City Company Limited (GIFTCL)” GIFTCL is a 50:50 Joint Venture Company between Gujarat Urban Development Company Limited (GUDCL) and Infrastructure Leasing & Financial Services (IL&FS)   It is located at a distance of about 12 km from the Ahmedabad International Airport and 8 km from Gandhinagar Total built-up area in the GIFT Master Plan is 143 million sq. Integrated Townships.   One-stop destination for global financial services and IT industry To be set up across 500 acres of land.  . etc. ft.Gujarat International Finance Tec-City (GIFT) 7 Gujarat International Finance Tec-City (GIFT) is being developed as a Central Finance and Business District (CFBD) between Ahmedabad and Gandhinagar and maybe expanded and surrounded by Institutional areas. Knowledge parks.

High quality of living .

084 Primary Health centres (PHC). 7. 282 Community Health centres (CHC)  More than 40.High quality of living  Various Urban development initiatives.274 Sub centres.for high quality living  Bus Rapid Transport System of Ahmedabad awarded at Washington Sustainable Transport award  Sabarmati river front development to create quality space for cultural and recreational activities  World class educational institutions and health care facilities  Various avenues for recreation and entertainment throughout the state  Wide array of choices for tourists -heritage monuments. archeological sites .000 registered doctors . wild life and beaches 8  State 1.

Proactive governance .

special economic zones. investment regions.Key government initiatives 9 Simplification of procedures Information Bank Industrial Zoning Creation of Land bank • Understanding the Roadblocks in the Simplification Procedure • Devising Mechanisms to plug in the Identified Gaps • Centralized availability of information about the districts. etc • To create environmentally sustainable industrial areas based on certain predefined parameters • Industrial zoning will help obtain speedy clearances • Identification of land for industrial purpose in each district • Facilitate obtaining land information and development of infrastructure . sectors.

Key government initiatives 9 Gujarat Investor Portal Investor Support Software Investment Monitoring System Doing Business in Gujarat • Monitoring of the status of investment / MoU at various levels of approvals and implementation • Tool to support Industrial Facilitation Act • Online filing of Common Application Form (CAF) and availability of the application status online • A software to assist in identifying suitable location based on critical parameters • Detailed authenticated and updated information on infrastructure available upto Taluka Level • A compilation of various incentives offered to the investors and the clearances required to start a new venture in the State .

Proactive governance.  25 CETP (Common Effluent Treatment Plants) operational in state.  4 common incinerators and 34 captive incinerators in operation. Narmada.  12 Common bio medical waste management facility. prevent and control the pollution of water in the State. the board is monitoring the quality of river water from 70 sampling stations. Tapi. Source: Socio-Economic Review. MINARS project: Under Monitoring of Indian National Aquatic resources System.  7 Common Hazardous Waste Treatment. Storage and Disposal Facilities (TSDF) in operation.  14 private TSDF and 8 government facilities in operation. Gujarat State 2009-10 .Environment protection 9 The Government of Gujarat constituted the Gujarat Pollution Control Board with a view to protect the environment.  The board has enforced strict regulations and laws for environment protection. GEMS Projects: The Global Environmental Monitoring System project is undertaking an assessment of the quality of water of the major rivers of the state.

1999 •78 projects under PPP are under various stages of implementation •42 Projects worth INR 262 billion completed •26 Projects worth INR 317 billion in pipeline Sector Port Power Road Road & Transport Railways Water IT & ITES Aviation Urban Development Total Completed/ Operational 16 4 18 0 0 0 4 0 42 EOI stage 5 0 1 3 1 0 Bidding stage 6 5 LOI stage 9 4 2 Pipeline 6 12 1 2 2 2 0 1 4 26 0 3 10 11 1 15 *PSP (Private Sector Participation) .200 km (PPP) Source: Department of Economic affairs March 2009 9 Enacted the PSP* Law. Gujarat Infrastructure Development Act.Proactive governance -Public Private Partnership (PPP) projects Several Firsts in India:  Private Port at Pipavav in 1992  Liquefied Natural Gas (LNG) Terminals at Dahej in 2004 (PPP)  Expressway from Ahmedabad – Vadodara in 2004 (PPP)  Country‟s only Liquid Chemical Port Terminal at Dahej (PPP)  State – Wide Gas Grid of 2.

New industrial policy 9 Industrial Policy 2009 Thrust sectors Specific sectors identified across manufacturing services and infrastructure Incentives Sector specific Subsidy on electricity duty Up-gradation of industrial estates Dedicated land bank for industry being created HR/Labour Labour law flexibility Industryacademia collaboration Support for development of specialized institutes Business environment Single window clearance Marketing support Grievance redressal Information centers Infrastructure Focus on urban. social and industrial infrastructure . physical.

investors.000 registered delegates • Countries participated: 47 • Foreign delegates: Over 600 MoUs 9 Vibrant Gujarat 243 5000 93 0 14 2003 20 2005 2007 2009 Investment 200 100 0 Number of MoUs signed MoUs signed 3% 6% 4% 3% 8% 16% 40% Urban Development Manufacturing Sectors Infrastructure Sectors Investment Regions Progress till date : 4 editions of Vibrant Gujarat More than 9500 MoUs with proposed investment of more than 370 USD billion 19% USD billion 10000 300 . • Seminars: 12 sector-specific seminars and 2 conventions on SMEs and Tourism • Participants: Over 20. corporations. 232 exhibitors over an area of 19. thought leaders. m.Vibrant Gujarat campaign Vibrant Gujarat Global Investors‟ Summit (VGGIS) is a biennial event organised with the aim of bringing together business leaders. policy and opinion makers while highlighting the strengths of Gujarat as an investment destination Highlights of VGGIS 2009 • Partner country: Japan • Exhibition participation: 16 countries.200 sq.

Opportunities  Industry specific advantages – in a slew of sectors  Presence of more than 340.  Historically strong gems and jewelry sector  Strong mineral base  Large investments requirement in infrastructure  Opportunities in ports and port based industries  Opportunities in Knowledge sector  Opportunities in the tourism industry spread across the value chain  Opportunities in sunshine sectors like solar power and biotechnology 9 .creating opportunities in agro processing.000 MSMEs in the state  Strong growth of agriculture and horticulture .

Vibrant Gujarat 2011.The next big opportunity 9 Discussion Forums • • • • • Global Partnerships Good Governance Emerging Geographies Green Energy Environment & reduction of carbon foot-prints Networking events • B2B Meetings • B2G Meetings • Catalogue Shows Panel Discussions • • • • • Human Development Index Water conservation & efficient use Knowledge Sector Youth Potential Inclusive Growth Conventions and Seminars • For Small and Medium Enterprises • 12 sectoral seminars for participation .

Fax: +91 79 232 50490 indextb@indextb.pwc. Gujarat.vibrantgujarat. INDIA.gujarat. 18.com www. Udyog Bhavan.com .2011@in. Sector 11.indextb. OF GUJARAT ORGANISATION) Block No.com www. 2nd Floor. Gandhinagar – 382010.com Knowledge Partner PwC vibrant. Phone: +91 79 232 50492/3.iNDEXTb INDUSTRIAL EXTENSION BUREAU ISO 9001:2000 Certified (A GOVT.

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