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Welcome to Gujarat.

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Presentation on theme: "Welcome to Gujarat."— Presentation transcript:

1 Welcome to Gujarat

2 Flow of Thoughts India is an emerging economic super power Gujarat: Global business hub Highlights of Gujarat’s development Opportunities for collaboration with Gujarat Vibrant Gujarat:2013

3 Vibrant India

4 India – Preferred Investment Destination
Section 1 – India - Preferred investment destination 9th largest economy in the world by nominal GDP and 4rth largest by purchasing power parity (PPP) Recorded the highest growth rates in the mid-2000s One of the fastest growing economies in the world (GDP – 8.6% in 2011) A.T. Kearney Survey CAGR Exports 14% CAGR Import 14% No Change Decline Growth India is one of the major G-20 economies   17th largest exporter and 11th largest importer in the world Main Export Partners 16% 17% 18% 19% 20% 25% 26% 59% 58% 57% 56% 54% US 13% UAE 12% China 8% Hong Kong 4% Main Import Partners US 6% UAE 7% China 12% Australia 5% Saudi Arabia 6% The 2nd preferred investment destination (World Investment Prospects Survey by UNCTAD) USD 254 billion of FDI inflows between April 2000 and March 2012 2

5 India – The Growth Story
% Share of Global GDP (PPP) TRILLION $ ECONOMY 4th largest economy in the world in PPP terms 7% ANNUAL GROWTH during global economic slowdown 8.6 % ANNUAL GROWTH PROJECTION for the financial year GDP Growth Rate (%) *Estimated The Global Business Hub

6 Booming domestic demand

7 Advantage India Strong Market Fundamentals Access to technology as a
World's largest democracy with 1.2 billion people Land of abundant natural resources and diverse climatic conditions Enabling business environment with greater global participation Strong Market Fundamentals Access to technology as a result of the IT revolution Impetus on Infrastructure Development Progressive simplification and rationalization of direct and indirect tax structures Competitively priced skilled labour

8 Gujarat emerging as Global Hub

9 Why Gujarat? A highly industrialized state with 7.5% contribution to India's GDP ( ) Contributes 17% of India’s industrial output ( ) 26% share in investments (implemented projects) in India, till 2011 Highest contribution to India's exports ( ) - 25% Highest share of India's total port cargo is handled at Gujarat's ports ( ) - 37%

10 Gujarat – economy on a high trajectory
Gross State Domestic Product growing at a five year average of ~10% Highest Degree of Openness (ratio of exports from state to Gross State Domestic Product) at ~53% Source: Gujarat Socio-economic review ; Annual Survey of Industries ; DIPP SIA statistics

11 Robust manufacturing Gujarat is targeting to increase its manufacturing contribution to its GSDP to 32% in the next 5 years

12 Gujarat – leveraging strategic location
London Newark Kuwait Doha Dubai Sharjah Singapore Muskat Sea-based trade destinations – West Europe, Middle East, Asia Destination of growing potential Gujarat has a 1600 km long coastline having 42 ports – the highest number of ports in any Indian state

13 Gujarat – robust infrastructure
Robust physical infrastructure in tune with modern times Excellent road network, the best in the country Home to highest number of ports and airports in India The only Indian state to have a state-wide gas integrated network of 2,800 km Power-surplus state with uninterrupted power supply in every town and village

14 Gujarat Ports Several firsts in India
Kandla Several firsts in India Private port at Pipavav in 1992 Country’s only Liquid Chemical Port Terminal at Dahej (PPP) Jakhau Mundra Navlakhi Jamnagar Okha Khambhat Sikka Positra Dholera Bhavnagar Mithivirdi Dahej Porbandar Mahuva Sutrapada Hazira Pipavav Simar Jafrabad Maroli Ports in Gujarat handled total traffic of about MMT in , accounting for 37% of total cargo traffic Due to our strategic location, we are looking to become a transhipment hub Major Port Private Sector Ports GMB* Ports A P Muller – APM Terminal operates Pipavav port Dubai Port World – operate a terminal in Mundra International Container terminal; infrastructure was developed by Adani Source : Indian Port Association

15 Gujarat – R&D Scenario Gujarat accounts for over 10% of the total R&D spending of India in The state has attracted maximum foreign technology transfer agreements from 1991 to 2011, giving further boost to research and development The state has over 35 R&D and specialized institutions, focusing on applied research for major manufacturing sectors including pharmaceuticals & biotechnology, chemicals & petrochemicals, auto & engineering, renewable energy, etc Key sector – Pharmaceuticals and Biotechnology. The state has 40% of the Contract Research Organizations in the country. Key R&D segments include clinical research, genetic engineering, drug research and development

16 Government initiatives Support for research and development institutions scheme
For support to R&D Institutions, assistance of upto 60% of the project cost is provided (excluding cost of land and building) For assistance to contract/sponsored research work, assistance of upto 50% of the project cost is provided (excluding cost of land and building) subject to a maximum of INR 50 Lakh (USD 100,000) Announced by the Government of Gujarat to support development in the R&D sector Operative period – February 2009 to February 2014 Proposed benefits – up-gradation of facilities and setting up of new R&D institution, testing facilities, incubation center, etc For assistance to contract/sponsored research work: R&D Institutions, including those established by Government and Private sector Institutions recognized by Department of Scientific and Industrial Research, Govt. of India and engaged in sponsored R&D work. AICTE approved professional colleges including autonomous as well as those affiliated to Universities, taking up sponsored R&D work from industry. Eligible institutions: Specific R&D Project proposals from Research and Development Institutions, including those established by Government and Private Sector institutions, recognized by Department of Scientific and Industrial Research, Government of India and engaged in sponsored R&D work. Proposals from AICTE approved professional colleges, including autonomous, as well as those affiliated to Universities, taking up sponsored R&D work from industry. Assistance for Contract/ Sponsored research work from any industrial unit / Industry Association to recognized R&D Institution/ technical colleges approved by AICTE, will be considered. Sponsored R&D Project proposals from Industries Associations or individual industrial units

17 Government initiatives – International Centre for Entrepreneurship & Technology (iCREATE)
iCreate is the Gujarat government’s initiative to promote innovation. To be developed as a world class innovation centre on a sprawling 34-acre campus, aimed at providing the best environment to young entrepreneurs to innovate and create businesses which in turn will result in prosperity for the state as well as India

18 Gujarat – strong urban, social and educational infrastructure
Ahmedabad voted 3rd fastest growing city of the world by Forbes Gujarat is home to some of the best educational institutes in India – Indian Institute of Management, Ahmedabad, National Institute of Design, Indian Institute of Technology Gujarat is the first state in the country to successfully implement the Bus Rapid Transit System (BRTS) in Ahmedabad Projects like Sabarmati River Front Development are unique to Gujarat with the aim of creating quality space for cultural and recreational activities Surat, Vadodara and Rajkot are ranked amongst the fastest growing cities of India

19 Gujarat Social development Human Development Indicators: Towards a better quality of life
Gujarat’s focus on HDI has started showing positive impacts through increase in enrolment, reduction in drop out , reduction in both infant and maternal mortality and improved access to emergency 108 services 19

20 Gujarat – Industry Responsive human capital
Over 100,000 youth provided employment related skills by the Gujarat Knowledge Society Over 100,000 urban poor youth were provided skills-development training under the Umeed Yojana 16 Nodal Institutes designated across sectors like engineering & automobiles, plastic and packaging, textiles, apparel, chemical & petrochemicals, gems & jewellery and infrastructure through 7 Anchor Institutes 31% 15% 33% 26% CAGR Intake has been doubled in the last 3 years 200,000 Industry responsive manpower through 300 skill development centres by 2014 125,000 Industry responsive manpower through 250 ITIs every year Source: Directorate of Employment & Training, Gujarat

21 Gujarat – a new paradigm for industrial growth
Current phase – involving Integrated development of large areas like SIR, PCPIR and DMIC – is poised to transform the industrial scenario in the state Level of Integration Integrated large area developments Special Investment Regions (> 100 sq. km.) Industrial Areas ( sq. km.) Delhi Mumbai Industrial Corridor SEZs (55) Multi product Chemical Textile Pharma IT / ITeS Electronics Engineering Biotech Gems & Jewellery 202 Industrial Estates 83 product clusters Phase I Phase II Phase III Phase IV Phase of industrial development

22 Multinational Companies in Gujarat
Some Dutch Companies in Gujarat Royal Haskoning India Incotec India HaziraLNG Private Limited Gateway TechnoLabs Pvt. Ltd. Banner Pharmacaps India Private Limited Akzo Nobel Non Stick Coatings Limited

23 Ease of doing business Government and people who understand business and appreciate business people Industry implementation on a fast track Proactive state government which reaches out to industry Home to largest sponge iron factory of the world Home to cheapest car manufacturer of the world Home to largest petro-refinery of the world

24 Gujarat: Opportunities for Collaboration

25 Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)
A comprehensive economic development project spread over 500 sq. km. Located in South Gujarat which is the centre of industrial clusters specially the chemical and petro-chemical industries and other water-intensive industries, requiring special arrangement Ahmedabad PCPIR

26 Gujarat International Finance Tec-City (GIFT)
India’s first SEZ for global Financial Services – GIFT emerges as a forerunner of new opportunities in Gujarat Globally benchmarked International Finance Centre 12 km from Ahmedabad International Airport) Central business hub Targeting Financial Services & IT/ITeS sectors Up to 90 million sq. ft. of real estate office and residential space First of it’s kind development in scale, scope and quality State-of-the-art infrastructure

27 Exciting opportunities: Delhi Mumbai Industrial Corridor (DMIC)
Haryana Rajasthan Gujarat Maharashtra Madhya Pradesh Uttar Pradesh Uttaranchal Arabian Sea Dadri J.N.Port End Terminals DFC Alignment DMIC: a high impact industrial area within 150 km distance on both side of DFC A Global Manufacturing and Trading Hub Supported by world class infrastructure Project Goals Double the employment potential in five years - (14.87% CAGR) Triple industrial output in five years (24.57% CAGR) Quadruple exports from the region in five years - (31.95% CAGR)

28 Dholera Special Investment Region (DSIR) A world class development spread over 900 sq. km.
Determinants Units Total Area (including 22 villages) 900+ sq. km. Urbanizable area 546 sq. km. Dholera SIR : Ideally located, widely connected Airport and Sea Port in the vicinity Express way and high-speed Metro Rail to link the SIR with Ahmedabad City Center, Industrial, Logistic, Knowledge and IT, Recreation and Sports, Entertainment World class residential facility A “Singapore” in the making!! Source: GIDB, GoG

29 Clean Energy, responsible development model, solar panels
Development of distributed gas based power combined with non conventional sources Investment requirement Non- Conventional power projects under private sector Tidal and geothermal projects first at a pilot scale, and then at a commercial scale Development of wind-solar hybrid installations and biomass projects Project Fund required (USD billion) Wind 2.65 SHP 0.02 Bio Mass 0.24 Solar 3.82 WTE 0.01 Total 6.74 Development of large scale solar parks and canal-top solar projects Offshore wind projects development Development of solar manufacturing capacities Development of projects under solar rooftop programme (Bhavnagar, Surat, Rajkot, Mehsana) Source: Energy and Petrochemicals Department, Government of Gujarat

30 Metro-Link Express for Gandhinagar & Ahmedabad (MEGA)
An SPV named ‘METRO-LINK EXPRESS FOR GANDHINAGAR & AHMEDABAD (MEGA) CO. LTD.’ as a Project Development Agency PROJECT COST The estimated construction cost is USD ~ 3.8 billion for a route of ~ 101 km

31 Vibrant Gujarat

32 Vibrant Gujarat 2011 Summit
Highlights of Vibrant Gujarat 2011 Summit Partner Countries: Japan and Canada Partner Organizations: UNIDO, JETRO and CBC 8,380 business intentions expressed Participation: 101 countries, over 1,400 foreign delegates and more than 35,000 Indian delegates Knowledge tie-ups: more than 70 TIE-UPS with leading institutions from across the globe

33 Vibrant Gujarat- A journey so far The journey from “investors’ summit” to “global business hub”
A paradigm shift to an ideal platform for Knowledge, Social and Business Transformation 2013 The Global Business Hub 2011 The Global Business Hub 2009 Showcasing Gujarat – The Growth Engine of India 2007 2005 2003 Making Gujarat as Most Preferred Investment Destination Making Gujarat as Preferred Investment Destination Re-establishing Gujarat as Investment Destination

34 Highlights of Vibrant Gujarat Summit 2011
Partner Countries: Japan and Canada Partner Organizations: UNIDO, JETRO and CBC Exhibition Area: 35,000 sq m Events: 12 Pre-Event Seminars, 11 Pre-Summit events, 39 events during Summit Participation: 101 countries, over 1,400 foreign delegates and more than 35,000 Indian delegates Knowledge tie-ups: more than 70 TIE-UPS with leading institutions from across the globe

35 VG 2013 - Summit Opportunity for Netherlands 11th January 2013
Fore Noon After Noon 11th January 2013 SUMMIT INAUGURAL Country seminar Partner Organization Seminar Sector Seminars State Seminars Round table B2B Meetings 12th January 2013 SME Convention Youth Convention Other Seminar Other Seminars VALEDICTORY 13th January B2G & B2B Meetings - Online match-making on Opportunity for Netherlands

36 Seminars & Conventions during Summit
Timing GoG Anchor Proposed Event Partner Partner Country/ Organization 11th January 2013 Technology Solutions for Environment Sustainability E&FD & GPCB CII Sweden Port-led Development GMB South Korea & Netherland Wind and Solar Energy equipment manufacturing EPD/ GEDA FICCI EU India Chamber & Japan, Denmark Developing integrated, smart, sustainable cities GIDB Japan, JETRO 12th January 2013 Gujarat – An Emerging Destination for Financial Services GIFT Canada Land use efficiency – Urban Development UDD Youth Convention – Empowering Youth Culture Dept. AIBC Gujarat – An Emerging Transportation Hub IC ACMA & SIAM SME Convention – Growth through Competitiveness IC Office & GIDC

37 VG 2013 – Summit For more details about submit please visit
For investment inquiry ,please visit

38 About iNDEXTb

39 About iNDEXTb activities
INDEXTb is the Gujarat’s investment promotion agency. To provide a platform for inward and outward investments to global investor’s community. Investment promotion both in industrial and infrastructure projects, acting as a single window facilitation center. Promoting foreign direct investments  Handholding project implementation from conceptualization to implementation Coordination with various departments of the state and central Governments  for various clearances and issue resolving Coordination with chambers of commerce and industries associations across India and abroad for promotion of trade and business . December 2011

40 Investment facilitation Portal
Detailed information on investing in Gujarat December 2011

41 Welcome to Vibrant Gujarat 2013
Thank you! Welcome to Vibrant Gujarat 2013 *More than 2,000 foreign delegates expected to participate Partner countries - Japan and Canada Visit us at

42 Help in understanding Tax Framework
Corporate Income Tax Indirect Tax Dividends Distribution Tax 16.22% TRANSACTION INDIRECT TAX GENERIC RATE Import of goods into India Customs duty* 26.85% Manufacture of goods in India Excise duty (CENVAT)* 12.36% Provision of specified services Service Tax Import of technology R&D Cess 5% Sale of goods intra-state VAT** 4% to 15% Sale of goods inter-state CST** 2%# or equivalent to local VAT rate Entry of goods into specific areas Entry Tax / Octroi** 4% to 30% Business profits Domestic Company 32.44% (net basis) Foreign Company 42.02% (net basis) Interest 21.01% Royalty/FTS 10.51% (gross basis) 42.02% (net basis) Capital Gains* Short term 42.02% (net basis) Long term 21.01% (net basis) Branch profit tax** NIL Tax rate for Interest, Royalty, FTS & Capital Gains is for non-resident recipient (subject to fulfillment of certain conditions under the Act). These tax rates are applicable if income exceeds INR 10 million (USD 200,000 approx.). * assuming shares are unlisted ** proposed under the Direct Taxes Code to be applicable from * Customs / Excise duty rates would vary based on the description of the goods ** VAT/CST and Entry tax rates would vary based on the description of the goods and the State where the transaction is undertaken


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