iNDEXTb DESTINATION GUJARAT

India – The Favoured Investment Destination

Strong Economy
1,500 7% 10%
8% • Trillion dollar economy - world’s 12th largest
Real GDP US$

Real GDP Growth

1,000 4% 6%
4% • 53% of GDP from service sector
Billion

500
2%
• 29% of GDP from manufacturing sector

Rate
- 0%
• Annual growth of 7% during global economic

2006

2009
2003

2004

2005

2007

2008
slowdown
Year Source: Economic Survey of India

• Second most favoured destination for FDI Computer Software and

Manufacturing Sectors
attracting highest FDI
Hardware
• FDI inflow grew an average of 9% Telecommunication

(2000-2009)
Real Estate
during global economic slowdown

FDI Destination
Construction
• US$ 19 billion FDI inflow between April –
Pharmaceuticals and Chemicals
November 2009
Top FDI Destinations of the World
Rank Countries India ranks at the top on availability of skilled
1 China manpower, access to local and international
2 India markets and strong market fundamentals
3 United States
4 Russian Federation
5 Brazil Source: DIPP; WIPPS 08-10, World Competitiveness
WHY GUJARAT
 Gujarat is all about Trade with Tradition, Commerce
“I have attended many summits but never have
seen such a summit. I am a little worried seeing
with Culture, Enterprise with Entertainment and
too much investment flowing to Gujarat, what Development with Disaster management.
would be left for rest of the country?” Desire + stability = Resolution
Mr. Sunil Bharti Mittal
Resolution + Hard work = Success”
CEO, Bharti Group
Mr. Narendra Modi
Chief Minister, Gujarat
“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. 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
Access to major international and domestic markets
1

Located on the west coast of India and

connected to major ports of UK, Middle
East, Africa, East Asia and Australia

Gateway to land locked states in

India

1,600 km coast line – one fourth of

India‟s water front – offers numerous
opportunities for port based industries
Home to most ambitious projects
An indication of Gujarat‟s strong economy 2

 India‟s largest producer of Drugs, 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, 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 State-
Wide Gas Grid
 India‟s largest copper Smelter
An indication of Gujarat‟s strong economy 2

 Gross State Domestic Product : INR 3,372 billion (US$ 75 billion)

 Population: 58 million Population 5%
 GSDP CAGR (2004-09): 10.4 %
 Per Capita Income: INR 33,608 (US$ 1094) Geographical area 6%

 Urbanisation: 37.4%
No. of factories 10%

Contribution of Gujarat to India - sectors Net Manufacturing value 12%

Salt processing 80%

Value of output 16%
Diamond… 80%
Plastic Industry 65% Fixed capital investment 17%
Petrochemicals 62%
Exports
22%
Chemicals 51%
Pharmaceuticals 42%
Gujarat's share in India
Source: Socio-Economic Review, Gujarat State 2009-10
An indication of Gujarat‟s strong economy 2
Realization as percentage of total number of IEMs filed
 Highly industrialized state, with 38% of GDP 20.0%
contributed by secondary sector 15.0%
 Sustained investor confidence, state with the 10.0%
one of the highest number of proposals in India 5.0%
0.0%
 Creating value for investors, ranked as the best

Orissa
Pradesh
Gujarat

Karnataka
pradesh

Tamil Nadu
Uttarpradesh

Chattisgarh
Maharashtra
Madhya
Andhra
state for investment approved by financial
institutions
 Top contributor to Indian economy, around 22%
of Indian exports contributed by Gujarat
Total IEMs Filed in India Gujarat
 An economy on the boom and beating 12.71%
(1991-2009)
recession, GSDP growth of more than 10% Others Maharashtra
since 2004 West Bengal 17.91% 9.64%
5.02%
 Delivering promises, state with highest number Madhya Pradesh
6.30% Orissa
of IEM realization 12.38%
 Pioneer in Public-Private Partnership projects Karnataka
7.80%
Jharkhand Andhra Pradesh Chhattisgarh
6.61% 8.72% 12.91%
Robust physical, social and industrial infrastructure
Physical infrastructure 3

A power sufficient state with one of

the highest per capita power The only Indian state with an
consumption integrated state-wide Gas Grid
Excellent road and rail network.
One of the states with highest tele-
density

State with the highest number of airports and second

highest number of ports

The Sardar Sarovar Narmada river linkage project, to

create continuous water supply throughout the state
 Physical infrastructure
Well connected by road, rail and air ways.
Transport
12 domestic airports (highest in the country) and 1
international airport (Ahmedabad)
Extensive railway network - 5,309 km.
Road network - 74,038 km (National Highways -
2,867 km, State Highways (18,702 km.), Major
District Roads- 20,707 km
Only state to have an Integrated
State- Wide Gas Grid, network of
Telecom
over 2,200 km
Only state in the country to have
Gas
two LNG import terminals
Leads all other states in the country
in terms of gas pipeline for
industrial use, city gas distribution
and LNG re-gassification
infrastructure
Source: Socio-Economic Review, Gujarat State 2009-10
3
1,600 Km coastline - one fourth of nation „ s
waterfront
1 Major Port at Kandla and 41 minor ports – Kandla
Ports
port handled 72 million MT and minor ports handled
150 million MT of cargo in 2008-09.
Cost efficient transportation of natural gas, crude oil
and petroleum products from Middle East and Europe
One of the states with highest tele Introduced Solar Power Policy 2009
density Installed capacity – 11,636 MW
Electricity
Many IT Parks – (October 2009)
Gujarat State wide Area Network Electricity generated – 68,962 MU
being implemented for the state Per capita consumption of electricity
government – 1,446 units
Excellent internet connectivity
Projected to become a power
surplus state by 2012 assuring high
quality power supply
Abundant natural resources
Natural resources 4

 Gujarat has got large natural reserves of oil

and gas. It has a reserve of 725 million tonnes of
crude oil and 1,055 billion cubic metres of
natural gas Limestone
Bauxite
 Gujarat produces the largest volume of crude Lignite
Dolomite
oil (5.9 million tonnes) in India Silica Sand
Base metal
 It is the second largest producer of onshore Chalk
China clay
natural gas (2.6 billion cubic metres) in India Fluorspar
Fireclay
 A mineral rich state both in terms of capacity Granite
Manganese
reserves and production Marble
Quartz
 Has a total mineral reserve of more than Wollastonite
Bentonite
19,000 Million tonnes
 One of the highest reserves of
bauxite, limestone and clay deposits in India
A large pool of qualified human resources
Human capital 5

 Availability of large pool of high quality human resources for all sectors
 Home to some world renowned institutes in management, 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
 Government initiated schemes for women empowerment, reducing infantile mortality and
primary education support
Human capital 5

50000 Seats availability

More than 30,000 45000
40000
Engineering and 45,000 35000
diploma engineering seats 30000
25000
available 20000

More than 900 higher 15000

10000
2008-09
2009-10
education institutions in the 5000
0
state for quality manpower

MBA

MCA

Engineering

Pharmacy
Diploma Engineers
More than 500,000 students
enrolled in higher education.

Source: Socio-Economic Review, Gujarat State 2009-10

World class institutions of higher learning 5

Pharmaceuti
cal

Engineering
Knowledg and
e Communicati
on

An Education
Hub
Manageme
nt Chemical

Fashion
Law and
Design
Business friendly policies
Doing business in Gujarat 6

 Favorable policy and regulatory Investments

under
environment Investment in sectors implementation
 Industrial Policy 2009– for high quality (1991-2010) (USD billion)
socio economic development Chemicals & Petrochemicals 27
 Sectoral policies for promotion of Infrastructure Projects 37
investment and growth Other Engineering 9
Glass, Ceramic & Cement
 Incentives under SEZ, SIR and Industrial 9
Others
Area development 9
Electrical Tele & Electronics
 Subsidies for environment protection 4
Metallurgical Industry
 A leader in encouraging private 4
Textiles 1.6
participation under public-private
Transport Equipment 1
partnership Food Processing 1
 Taxes at par with other business Drugs & Pharmaceuticals 0.2
destinations Industrial Machinery 0.1
 Globally cost competitive labour force
 State with least man-day loss
Competitive destination 6

Gujarat has one of the lowest Minimum wages ( USD/month)

levels of minimum wage 2000
1557 1700 1431 1014 820
which is around USD 120, making 1000 204 363 358 122 70 267
0
Gujarat extremely competitive.

Malaysia

Kingdom

Russia

Brazil
Germany

USA

Japan
Australia

Gujarat
China

Turkey

United
Taxes in India are broadly 60% Tax implication
•Value added tax- 12.5 % 50%
40%
•Corporate tax- 33.22 % (42.23% for 30%
foreign entities) 20%
10%
• Personal income tax- 0%
•No tax on annual income below

U.K.
Japan

Russia
Brazil

U.S.A.
China

France

Turkey
Australia

Germany

Gujarat
USD 3,000.
•Rate of 10-30 % based on Corporate tax Minimum income tax Maximum income tax VAT/GST
income slab.
Land availability for industrial purpose
Development of integrated industrial regions 7

 12 Special Investment Regions of more than 100 sq km

each being planned
 1 Petrochemical and Petroleum Investment Region, 55
Special Economic Zones and existing 200 industrial
areas, creating opportunities across sectors
 38% of the planned Delhi Mumbai Industrial Corridor
route is through Gujarat
 Development of new industrial areas for agro Phase 4 - Large scale
parks, tourism and recreation, and information Phase 3 - SEZ developments
technology • Delhi Mumbai Industrial
• Multi product
Corridor
Phase 2 • Single product
• Special investment regions
• Multi Service
• 257 Industrial (IT/ITES) • Petroleum, chemical and
estates petrochemical investment
Phase 1 regions
• 83 product • Knowledge corridor
clusters • 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 Palanpur Mehsana
Industrial Area
as „Global Manufacturing & Trading Hub
Vadodara-
Ankleshwar Industrial
Proposed Location Phase Ahmedabad
Area Bharuch-Dahej
Investment Region
Dholera
Industrial Area Palanpur-Sidhpur-Mehsana 2012 Investment Surat
Region Navsari
Industrial Area Vadodara-Bharuch 2008 Industrial
Area
Industrial Area Surat-Navsari 2012 Valsad
Umberga
Industrial Area Valsad-Umbergaon 2012 on
Industrial
Investment Region Ahmedabad-Dholera 2012 Area

Investment Region Bharuch-Dahej 2008

Proposed
Logistic Park
Special Investment Regions (SIRs) – regulatory framework 7

SANTALPUR
 First state to have passed SIR ordinance.
 13 SIRs have been proposed in the state. ANJAR

 Each investment region is of more than 100 sq km SANAND HALOL SAVLI

area. NAVLAKHI
CHANGODAR
PCPIR
 GIDB the Apex Authority – to regulate and approve OKHA DHOLERA
HAZIRA
projects of Regional Development Authority. ALIA BET
PIPAVAV
 SIR ordinance empowers state to set up various
Apex SIMAR
project development authorities. Authority-
 Single window clearance for projects. GIDB

Regional Project Project

Development Development Specific SPV
Authority Authority Source: GIDC
Special Economy Zones 7

Multi Product SEZ 10

Electronics and IT / ITES 16
Engineering 9
Pharmaceuticals 4
Chemicals 4
Apparel and Textiles 4
Others 8
Biotech 1
Gems and Jewellery 1
Handicrafts and Artisan 1
Non Conventional Energy 1
Ceramic SEZ (GIDC) 1
Multi Services (GIFT) 1 55 SEZs in various stages of implementation
10 Functional SEZs
FTZW (LMJ Warehousing Pvt Ltd) 1 24 Notified SEZs
14 Formally approved SEZs
Port based Multi Product SEZ 1 7 In principle approval
Total area under SEZs 30121 Hectares
Source: Industries Commisionerate of Gujarat Proposed employment 1.9 Million people
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, 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. Jhagadia,
Ankleshwar, 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. (ONGC) and Gujarat State Petroleum Corporation
(GSPC) to act as anchor tenant
 Dahej SEZ Limited, 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 Regulatory

measures Framework
Well established Availability of
infrastructure Gujarat SEZ Act Liberal natural resources
Chemical port terminal Proposed SEZ by GIDC SEZ policy
and chemical storage Concentration of
at Dahej & Jhagadia Gujarat Infrastructure Petroleum, Chemical and
facility at Dahej Development Act
Proposed SEZ in private Petrochemical estates
sector by Jubilant Notified Area Authority across the district
Quality work force under GID Act. Rich natural resources
Peaceful labor. Least Area and feedstock
man days lost availability
Development Authority
under Town Planning Act
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, Integrated Townships, etc.

 One-stop destination for global financial services and IT industry

 To be set up across 500 acres of land, 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. ft.
High quality of living
High quality of living 8

 Various Urban development initiatives- 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 , wild life and
beaches  State 1,084 Primary Health centres (PHC), 7,274 Sub
centres, 282 Community Health centres (CHC)
 More than 40,000 registered doctors
Proactive governance
Key government initiatives 9

Simplification of • Understanding the Roadblocks in the Simplification Procedure

procedures • Devising Mechanisms to plug in the Identified Gaps

Information Bank • Centralized availability of information about the districts, sectors, investment
regions, special economic zones, etc

• To create environmentally sustainable industrial areas based on certain

Industrial Zoning predefined parameters
• Industrial zoning will help obtain speedy clearances

• Identification of land for industrial purpose in each district

Creation of Land bank • Facilitate obtaining land information and development of infrastructure
Key government initiatives 9

Gujarat Investor • Monitoring of the status of investment / MoU at various levels of approvals
and implementation
Portal
Investor Support • Tool to support Industrial Facilitation Act
• Online filing of Common Application Form (CAF) and availability of the
Software application status online

Investment • A software to assist in identifying suitable location based on critical

parameters
• Detailed authenticated and updated information on infrastructure available
Monitoring System upto Taluka Level

Doing Business in • A compilation of various incentives offered to the investors and the
clearances required to start a new venture in the State
Gujarat
Proactive governance- Environment protection 9

The Government of Gujarat constituted the Gujarat Pollution Control Board with a view to protect the environment, prevent
and control the pollution of water in the State.

 25 CETP (Common Effluent Treatment

Plants) operational in state. GEMS Projects: The Global
 7 Common Hazardous Waste Treatment, Environmental Monitoring System
Storage and Disposal Facilities (TSDF) in project is undertaking an assessment
operation. of the quality of water of the major
 14 private TSDF and 8 government rivers of the state, Narmada, Tapi.
facilities in operation.
 4 common incinerators and 34 captive MINARS project: Under Monitoring of
incinerators in operation. Indian National Aquatic resources
 12 Common bio medical waste System, the board is monitoring the
management facility. quality of river water from 70
 The board has enforced strict sampling stations.
regulations and laws for environment
protection.
Source: Socio-Economic Review, Gujarat State 2009-10
Proactive governance -Public Private Partnership (PPP) projects 9

Several Firsts in India:

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

Industrial Policy 2009

Thrust sectors Incentives HR/Labour Business Infrastructure

Specific Sector specific Labour law environment Focus on
sectors Subsidy on flexibility Single window urban,
identified electricity duty Industry- clearance
across physical,
Up-gradation of academia Marketing
manufacturing collaboration support social and
industrial
services and estates Support for Grievance industrial
infrastructure Dedicated land development of redressal infrastructure
bank for specialized Information
industry being institutes centers
created
Vibrant Gujarat campaign 9

Vibrant Gujarat Global Investors‟ Summit (VGGIS) is a biennial event organised

with the aim of bringing together business leaders, investors, corporations, thought Vibrant Gujarat
leaders, policy and opinion makers while highlighting the strengths of Gujarat as
an investment destination 10000 300

USD billion
243
200

MoUs
Highlights of VGGIS 2009 5000
93 100
• Partner country: Japan
0 14 20 0
• Exhibition participation: 16 countries; 232 exhibitors over an area of 19,200
2003 2005 2007 2009
sq. m.
• Seminars: 12 sector-specific seminars and 2 conventions on SMEs and Tourism Number of MoUs signed Investment
• Participants: Over 20,000 registered delegates
• Countries participated: 47
MoUs signed
• Foreign delegates: Over 600
3% 6% 4%
Manufacturing
Progress till date : 4 editions of 3% Sectors
19%
Vibrant Gujarat Infrastructure Sectors
8%
16% Investment Regions
More than 9500 MoUs with 40%
proposed investment of more Urban Development
than 370 USD billion
Opportunities 9

 Industry specific advantages – in a slew of sectors

 Presence of more than 340,000 MSMEs in the state
 Strong growth of agriculture and horticulture - creating opportunities in agro
processing.
 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
Vibrant Gujarat 2011- The next big opportunity 9

Discussion Forums Networking events

• Global Partnerships • B2B Meetings
• Good Governance • B2G Meetings
• Emerging Geographies • Catalogue Shows
• Green Energy
• Environment & reduction of carbon
foot-prints

Panel Discussions Conventions and Seminars

• Human Development Index • For Small and Medium Enterprises
• Water conservation & efficient use • 12 sectoral seminars for
• Knowledge Sector participation
• Youth Potential
• Inclusive Growth
 iNDEXTb
INDUSTRIAL EXTENSION BUREAU
(A GOVT. OF GUJARAT ORGANISATION)
ISO 9001:2000 Certified
Block No. 18, 2nd Floor, Udyog Bhavan,
Sector 11, Gandhinagar – 382010, Gujarat, INDIA.
Phone: +91 79 232 50492/3, Fax: +91 79 232 50490
indextb@indextb.com
www.indextb.com

www.vibrantgujarat.com

Knowledge Partner

PwC
vibrant.gujarat.2011@in.pwc.com