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Gujarat: The Investment Destination


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Seminar material, Gujarat Business Seminar 25.9.2012

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Gujarat: The Investment Destination

  1. 1. iNDEXTb INDUSTRIAL EXTENSION BUREAU (A GOVT. OF GUJARAT ORGANISATION)Finland-India Gujarat :The investment destination
  2. 2. Gujarat – Investment Destination
  3. 3. LocationLocated on the west coastof India and connected to major ports of USA,Australia, Middle East and East Asian economies Gateway to land locked states in India 1,600 km coast line – offers numerous opportunities for port based industries
  4. 4. Strong Economy Leading investment destination with highly competitive investment climate 25 % of Indian exports Major contributor to India’s manufacturing sector One of most industrialized state38 % of State GDP contributed by secondary sector
  5. 5. Most preferred investment destinationState wise detail of IEMs Implemented (From Aug-1991 to May-2011) Contribution to State/UT No. of IEMs Investment (USD Bn) Employment (Numbers) Industrial Output of Gujarat India 1,581 17.36 2,27,482 Maharashtra 1,588 7.73 2,61,612 16% West Bengal 728 6.41 1,34,164 Uttar Pradesh 619 5.19 97,682Andhra Pradesh 936 4.67 1,85,290IEM – Industrial Entrepreneurs Memorandum Gujarat is not only leading in attracting investments, but also in implementing the same
  6. 6. Robust physical infrastructure• Robust physical infrastructure in tune with the modern times Percentage of total - Excellent road and rail network Indian cargo handled - Home to highest number of ports at Gujarat Ports and airports in India - High teledensity and excellent internet connectivity in the state 35% 6
  7. 7. Gujarat – robust infrastructureBus Rapid Transit , METRO and other Excellent road and rail connectivity – A power sufficient state with andevelopment projects in various urban 2,867 km national highways and 18,702 installed capacity of 14,626 MW andcentres km of state highways one of the highest per capita power consumptionThe only Indian state to have a state- Excellent air connectivity - 12 domestic Highest number of ports – 42 minorwide gas integrated network of 2,500 airports and one international airport and 1 major port with globalkm and only state to have 2 LNG connectivityterminals
  8. 8. Multinational Companies in Gujarat >100% November 2011 8
  9. 9. Land of innovative human capital High quality High quality Human Resource Healthcare available for all facilities available sectors throughout the state Land of Entrepreneurs spread across the globe Home to worldLabour relations at their best of harmony renowned institutes in management, A strong and industry-friendly eco- engineering and system designMore than 30,000 engineering and 45,000 diploma engineering seats availableMore than 900 higher education institutions in the state for quality manpowerMore than 500,000 students enrolled in higher educationVocational training under “Vanbandhu Yojana” to ensure training of more than 3,000 tribal youth during 2009-10
  10. 10. Strong social infrastructure Ahmedabad voted 3rd fastest growing city of the world by ForbesGujarat is home to some of the best educational institutes in India – IndianInstitute of Management, Ahmedabad, National Institute of Design, IndianInstitute of TechnologyGujarat is the first state in the country to successfully implement the BusRapid Transit System (BRTS) in AhmedabadProjects like Sabarmati River Front Development are unique to Gujarat withthe aim of creating quality space for cultural and recreational activitiesSurat, Vadodara and Rajkot are ranked amongst the fastest growing cities ofIndia
  11. 11. Industrial Development: A Paradigm ShiftCurrent phase – involving Integrated development of large areas like SIR, PCPIR and DMIC – is poised to transform the industrial scenario in the state Integrated large area developments SEZs (55) •Special Investment Regions • Multi product (> 100 sq. km.) • Chemical • Textile • Industrial Areas 202 Industrial Estates • Pharma (50-100 sq. km.) • IT / ITeS •Delhi Mumbai Industrial Corridor • Electronics • Engineering83 productclusters • Biotech • Gems & Jewellery Phase I Phase II Phase III Phase IV Phase of industrial development
  12. 12. Gujarat-Finland Avenues for Collaboration
  13. 13. India and Finland: Partnership for Growth• The bilateral trade between India and Finland reached Euro 1,295 in 2011 Finnish export to India Finnish import from India • Telecommunication • Textiles and garments equipment • Metals • Power generating machinery • Iron and steel • Electric and other machinery • Chemicals • Petroleum products • LeatherOver 80 Finnish companies now have operations in India and 30 Indian companies,mainly in the software and consultancy sector are working in Finland
  14. 14. Focus Areas (1) Clean technology (2) Energy including renewable energy (3) Information and communication industry (4) Micro, Small and Medium Enterprises (MSMEs) (5) Vibrant Gujarat 2013
  15. 15. About iNDEXTbIndustrial Extension Bureau(A Govt. Of Gujarat Organisation) ISO 9001 : 2008 Certified
  16. 16. 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
  17. 17. iNDEXTb - Facilitations
  18. 18. iNDEXTb - Facilitations Help in understanding the prevailing tax framework Corporate Income Tax Indirect Tax Distribution INDIRECT Dividends 16.22% TRANSACTION GENERIC RATE Tax TAX Import of goods into Customs duty* 26.85% Domestic India Business Company 32.44% (net basis) Manufacture of goods Excise duty profits Foreign 12.36% Company 42.02% (net basis) in India (CENVAT)* Provision of specified Service Tax 12.36% Interest 21.01% services 10.51% (gross basis) Import of technology R&D Cess 5% Royalty/FTS 42.02% (net basis) Sale of goods intra- VAT** 4% to 15% state Short term 42.02% (net basis) Capital Gains* Long term 21.01% (net basis) Sale of goods inter- 2%# or equivalent to CST** state local VAT rate Branch profit NIL Entry of goods into Entry Tax / tax** 4% to 30% specific areas Octroi**Tax rate for Interest, Royalty, FTS & Capital Gains is for non-resident recipient(subject to fulfilment of certain conditions under the Act). These tax rates are * Customs / Excise duty rates would vary based on the description of the goodsapplicable if income exceeds INR 10 million (USD 200,000 approx.). ** VAT/CST and Entry tax rates would vary based on the description of the goods and* assuming shares are unlisted the State where the transaction is undertaken** proposed under the Direct Taxes Code to be applicable from 2013-14
  19. 19. Investment facilitation portal – Detailed information on investing in Gujarat
  20. 20. iNDEXTb portal –
  21. 21. Vibrant Gujarat
  22. 22. 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 andBusiness Transformation 2011 2009 2013 2007 2005 The Global 2003 Showcasing The Global Business Gujarat – Business Hub Making Gujarat HubRe-establishing Making Gujarat The Growth as Most Preferred Gujarat as as Preferred Engine of India Investment Investment Investment Destination Destination Destination
  23. 23. Vibrant Gujarat 2011 Highlights of Vibrant Gujarat Summit 2011
  24. 24. VG 2013 - Summit Opportunity for Finland
  25. 25. Seminars & Conventions during Summit Proposed Event Partner Country/ Seminar Timing GoG Anchor Partner Organization11th January 2013Technology Solutions forEnvironment Sustainability 1400 - 1700 E&FD & GPCB CII SwedenPort-led Development South Korea & 1400 -1700 GMB CII NetherlandWind and Solar Energy equipment EU India Chamber &manufacturing 1430 -1730 EPD/ GEDA FICCI Japan, DenmarkDeveloping integrated, smart,sustainable cities 1430 -1730 GIDB CII Japan, JETRO12th January 2013Gujarat – An Emerging Destinationfor Financial Services 1000 -1300 GIFT CII CanadaLand use efficiency – UrbanDevelopment 1000 -1300 UDD CIIYouth Convention – EmpoweringYouth 1000 -1300 Culture Dept. FICCI AIBCGujarat – An Emerging 1000 -1300 IC ACMA & SIAMTransportation HubSME Convention – Growth through 1000 - 1300 IC Office & FICCICompetitiveness GIDC
  26. 26. VG 2013 – SummitFor more details about submitplease visitttp:// investment inquiry
  27. 27. VG 2013 – Summit Opportunity forOpportunity for Finland Finland
  28. 28. Vibrant Gujarat website – Detailed Information on Gujarat Register yourself for event updates
  29. 29. Vibrant Gujarat 2013 - Venue Iconic Business & Convention Center Over 78,000 sq. mts
  30. 30. Sparkle 2013 eventate – 4th January to 7th January2013enue – Surat, Gujarathe exhibition will be spreadacross 116 thousand sq feet ofpillar-less dome and willdisplay modern and traditional Opportunity to Showcase Gems and Jewellery designs injewellery designs under oneroof. Diamond Capital of India Online registration opens from October 2012 Visit:
  31. 31. 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