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Destination gujarat


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Presentation from the Gujarat Delegation at the Vibrant India Day 2012 at Nyenrode

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Destination gujarat

  1. 1. Welcome to Gujarat
  2. 2. Flow of ThoughtsIndia is an emerging economic super powerGujarat: Global business hubHighlights of Gujarat’s developmentOpportunities for collaboration with GujaratVibrant Gujarat:2013
  3. 3. Vibrant India
  4. 4. India – Preferred Investment Destination Section 1 – India - Preferred investment destination9th largest economy in the world by nominal Trade Scenario, USD billion FDI Confidence Index, 2012 A.T. Kearney Survey GDP and 4rth largest by purchasing 400 power parity (PPP) 350 China 1.87 300 CAGR CAGR Exports Import 250 14% 14% India 1.73Recorded the highest growth rates in the mid- 200 2000s 150 Brazil 1.6 100 One of the fastest growing economies in the 50 US 1.52 world (GDP – 8.6% in 2011) 0 Growth 1990-91 1994-95 2000-01 2004-05 2010-11 Germany 1.52 Decline GDP growth rate No Change15.0% Export Import 0 0.5 1 1.5 2 9.5% 9.6% 9.3%10.0% 6.8% 8.0% 8.6% Metallurgic 5.0% India is one of the major G-20 economies al FDI - Top Sectors Petroleum industries and natural 0.0% 2006 2007 2008 2009 2010 2011 17th largest exporter and 11th largest 5% Automobile industry Pharmaceut icals gas 5% 3% importer in the world Power 6% 7% Sectors contribution to GDP Constructio Main Export Partners n activities Services 10% 30% 16% 2011-12… 25% 59% 17% 2010-11… 26% 58% Real estate US UAE China Hong Kong 11% 2009-10 17% 26% 57% 13% 12% 8% 4% Computer 2008-09 software Telecommu 18% 26% 56% nications and 2007-08 Main Import Partners hardware 12% 19% 25% 56% 11% 2006-07 The 2nd preferred investment destination 20% 26% 54% (World Investment Prospects Survey 2010-2012 by UNCTAD)(300) 200 700 1,200 China UAE Saudi Arabia US Australia USD 254 billion of FDI inflows between 12% 7% 6% 6% 5% USD, billion April 2000 and March 2012 Agriculture Industry Services 2
  5. 5. % Share of Global GDP (PPP) TRILLION $ ECONOMY 4th largest economy in the world in PPP terms Taiwan, 1.0% Netherlands, Argentina, Islamic 1.0% Poland, 1.0% 0.8% 7% ANNUAL GROWTH Republic of Iran, 1.2% Australia, 1.2 Saudi during global economic slowdown Indonesia, 1.3 % Arabia, 0.9% % Turkey, 1.3% Canada, 1.9% 8.6 % ANNUAL GROWTH PROJECTION Korea, 1.9% Spain, 2.0% United for the financial year 2010-11 Mexico, 2.2% States, 20.8% Italy, 2.6% China, 11.4% Brazil, 2.9% 10.0% GDP Growth Rate (%) France, 3.1% 8.0% Russia, 3.3% Japan, 6.3% 6.0% United 4.0% Kingdom, 3.2 2008 % Germany, 4.2 2.0% 2009 % India, 4.7% 0.0% 2010* ASEAN-5 Korea Russia United States European Union India Brazil Taiwan -2.0% 2011* -4.0% 7% -6.0% *Estimated -8.0% -10.0% 5The Global Business Hub
  6. 6. Booming domestic demand
  7. 7. Advantage India Worlds largest Land of abundant democracy with natural resources and diverse climatic1.2 billion people conditions Enabling business environment with Strong Market greater Fundamentals global participation Access to Impetus ontechnology as a Infrastructure result of the IT Development revolution Progressive simplification and Competitively rationalization of priced skilled direct and indirect labour tax structures
  8. 8. Gujarat emerging as Global Hub
  9. 9. Why Gujarat? A highly industrialized state with 7.5% contribution to Indias GDP (2011-12) Contributes 17% of India’s industrial output (2011-12) 26% share in investments (implemented projects) in India, till 2011 Highest contribution to Indias exports (2010-11) - 25% Highest share of Indias total port cargo is handled at Gujarats ports (2011- 12) - 37% 9
  10. 10. Gujarat – economy on a high trajectory Major contributor to Indias Gross State Domestic manufacturing sector Product growing at a five Soda Ash 98% year average of ~10% Diamond processing 80% Salt production 78% Plastic industry 65% Highest Degree of Petro-chemicals 62% Openness (ratio of Chemicals 51% exports from state to Gross State Domestic Pharmaceuticals 35% Product) at ~53% Textiles 31% Source: Gujarat Socio-economic review 2011-12; Annual Survey of Industries 2008-09; DIPP SIA statistics 10
  11. 11. Robust manufacturing Gujarat’s manufacturing base is at par with world’s best manufacturing economies Thailand 40% China 34% Malaysia 26% Japan 18% South Korea 18% Germany 17% India 16% Russia 16% Brazil 16% Gujarat 28% Gujarat is targeting to increase its manufacturing contribution to its GSDP to 32% in the next 5 years 11
  12. 12. Gujarat – leveraging strategic location GUJARAT London Newark Kuwait Doha Dubai Sharjah Muskat Singapore Gujarat has a 1600 km long coastline having 42 ports – the highest number of Sea-based trade destinations – West Europe, Middle East, Asia ports in any Indian state Destination of growing potential
  13. 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. 14. Gujarat Ports Jakhau Kandla Mundra Several firsts in India Navlakhi Jamnagar • Private port at Pipavav in 1992 Okha Khambhat Sikka Dholera Positra • Country’s only Liquid Chemical Bhavnagar Mithivirdi Dahej Port Terminal at Dahej (PPP) Porbandar Mahuva Sutrapad Hazira a Pipava Simar v Jafrabad Maroli • Ports in Gujarat handled total traffic of about 342 Major Port MMT in 2011-12, accounting for 37% of total cargo Private Sector Ports traffic GMB* Ports • Due to our strategic location, we are looking to become a transhipment hubSource : Indian Port Association
  15. 15. Gujarat – R&D Scenario• Gujarat accounts for over 10% of the total R&D spending of India in 2010-11• 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 15
  16. 16. Government initiativesSupport for research and development institutionsscheme• Announced by the Government of Gujarat to support development in the R&D sector For support to R&D Institutions, assistance of upto• Operative period – February 2009 to February 2014 60% of the project cost is provided (excluding cost of land and• Proposed benefits – up-gradation of facilities and setting building) 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 For assistance to and Industrial Research, Govt. of India and engaged in sponsored contract/sponsored research R&D work. work, assistance of upto 50% of the project cost is provided (excluding• AICTE approved professional colleges including autonomous as cost of land and building) subject well as those affiliated to Universities, taking up sponsored R&D to a maximum of INR 50 Lakh work from industry. (USD 100,000) 16
  17. 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 17
  18. 18. Gujarat – strong urban, social and educationalinfrastructure Ahmedabad voted 3rd fastest growing city of the world by ForbesGujarat is home to some of the best educational institutesin India – Indian Institute ofManagement, Ahmedabad, National Institute ofDesign, Indian Institute of TechnologyGujarat is the first state in the country to successfullyimplement the Bus Rapid Transit System (BRTS) inAhmedabadProjects like Sabarmati River Front Development areunique to Gujarat with the aim of creating quality space forcultural and recreational activitiesSurat, Vadodara and Rajkot are ranked amongst the 18fastest growing cities of India
  19. 19. Gujarat Social developmentHuman Development Indicators: Towards a better quality of life Gross Enrolment Ratio Infant Mortality Rate (Per 000 live births) (Source: SSA, Gujarat Education Department) 150 115 100 50 110 0 105 100 2001 2002 2003 2004 2005 2006 2007 2008 95 Males Females 90 85 Maternal Mortality Rate (Per one lakh live births) 500 0 Boys Girls Total 1991-2001 2001-03 2004-06 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. 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 Increase in the number of seats in technical education Intake has 60,000 31% 15% 33% 31% 26% CAGR been 50,000 doubled in 40,000 30,000 the last 3 20,000 2007-08 2011-112 years 10,000 - Engg degree Pharmacy degree MBA MCA Engg diploma (Xth std.) 200,000 Industry responsive manpower through 300 skill development centres by 2014 125,000 Industry responsive manpower through 250 ITIs every year 20 Source: Directorate of Employment & Training, Gujarat
  21. 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 Integrated large area developments SEZs (55) • Special Investment RegionsLevel of Integration • Multi product (> 100 sq. km.) • Chemical • Textile • Industrial Areas 202 Industrial Estates • Pharma (50-100 sq. km.) • IT / ITeS • Delhi Mumbai Industrial • Electronics Corridor • Engineering 83 product clusters • Biotech • Gems & Jewellery Phase I Phase II Phase III Phase IV Phase of industrial development 21
  22. 22. Multinational Companies in GujaratSome Dutch Companies inGujarat• Royal Haskoning India• Incotec India• HaziraLNG Private Limited• Gateway TechnoLabs Pvt. Ltd.• Banner Pharmacaps IndiaPrivate Limited• Akzo Nobel Non StickCoatings Limited 22
  23. 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. 24. Gujarat:Opportunities for Collaboration
  25. 25. Petroleum, Chemicals and PetrochemicalsInvestment Region (PCPIR)A comprehensiveeconomicdevelopmentproject spreadover 500 sq. km.• Located in South Gujarat Ahmedabad which is the centre of industrial clusters specially the chemical and petro-chemical industries and other water-intensive industries, requiring PCPIR special arrangement 25
  26. 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. 27. Exciting opportunities: Delhi Mumbai IndustrialCorridor (DMIC) Uttaranchal Haryana Dadri Uttar  DMIC: a high impact Rajasthan Pradesh industrial area within 150 km distance on both side of DFC  A Global Manufacturing and Trading Hub Gujarat Madhya Pradesh  Supported by world class infrastructure MaharashtraArabian Sea J.N.Port End Terminals DFC Alignment
  28. 28. Dholera Special Investment Region (DSIR)A world class development spread over 900 sq. km. Determinants Units Total Area 900+ sq. km. (including 22 villages) 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. 29. Clean Energy, responsible development model, solar panels Development of Investment distributed gas based requirement power combined with Non- Conventional non conventionalpower projects under sources private sector Tidal and geothermal Development of wind- projects first at a pilot solar hybrid installations Fund scale, and then at a and biomass projects Project required commercial scale (USD billion) Development of large Wind 2.65 scale solar parks and canal-top solar projects SHP 0.02 Bio Mass 0.24 Offshore wind projects Development of solar development manufacturing capacities Solar 3.82 WTE 0.01 Development of projects under solar Total 6.74 rooftop programme (Bhavnagar, Surat, R 29 ajkot, Mehsana)Source: Energy and Petrochemicals Department, Government of Gujarat
  30. 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. 31. Vibrant Gujarat
  32. 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 32
  33. 33. Vibrant Gujarat- A journey so farThe journey from “investors’ summit” to “global business hub”A paradigm shift to an ideal platform forKnowledge, Social and Business Transformation 2011 2013 2009 2007 The 2005 Global 2003 Showcasing The Global Making Making Gujarat as Gujarat – Business Hub Business Re- The Growth establishing Gujarat as Most Engine of Hub Gujarat as Preferred Preferred India Investment Investment Investment Destination Destination Destination
  34. 34. Vibrant Gujarat 2011 Highlights of Vibrant Gujarat Summit 2011Partner Countries: Japan and CanadaPartner Organizations: UNIDO, JETROand CBCExhibition Area: 35,000 sq mEvents: 12 Pre-Event Seminars, 11 Pre-Summit events, 39 events during SummitParticipation: 101 countries, over 1,400foreign delegates and more than 35,000Indian delegatesKnowledge tie-ups: more than 70 TIE-UPS with leading institutions from acrossthe globe
  35. 35. VG 2013 - Summit Fore Noon After Noon • Country seminar11th January • Partner Organization Seminar • SUMMIT INAUGURAL • Sector Seminars 2013 • State Seminars • Round table • B2B Meetings Opportunity • SME Convention • Youth Convention for • Country seminar Netherlands State Seminars12th January • • Partner Organization Seminar • Other Seminars 2013 • Sector Seminars • VALEDICTORY • State Seminars • Other Seminar • Round table • B2B Meetings • B2B MeetingsJanuary 2013 B2G & B2B Meetings - Online match-making on 13th
  36. 36. Seminars & Conventions during Summit Proposed Event Partner Country/ Seminar Timing GoG Anchor Partner Organization11th January 2013Technology Solutions for 1400 - 1700 E&FD & GPCB CII SwedenEnvironment SustainabilityPort-led Development South Korea & 1400 -1700 GMB CII NetherlandWind and Solar Energy equipment EU India Chamber & 1430 -1730 EPD/ GEDA FICCImanufacturing Japan, DenmarkDeveloping integrated, smart,sustainable cities 1430 -1730 GIDB CII Japan, JETRO12th January 2013Gujarat – An Emerging 1000 -1300 GIFT CII CanadaDestination for Financial ServicesLand use efficiency – Urban 1000 -1300 UDD CIIDevelopmentYouth Convention – Empowering 1000 -1300 Culture Dept. FICCI AIBCYouthGujarat – An Emerging 1000 -1300 IC ACMA & SIAMTransportation HubSME Convention – Growth 1000 - 1300 IC Office & FICCIthrough Competitiveness GIDC
  37. 37. VG 2013 – SummitFor more details about submitplease visit investment inquiry,please visit inquiry/investment-inquiry.aspx
  38. 38. About iNDEXTb
  39. 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 Slide 39
  40. 40. Investment facilitation Portal Detailedinformation on investing in Gujarat December 2011 Slide 40
  41. 41. Thank you! Welcome to Vibrant Gujarat 2013 Partner countries - Japan and Canada Visit us at 41
  42. 42. Help in understanding Tax Framework Corporate Income Tax Indirect Tax Distribution INDIRECT Dividends Tax 16.22% TRANSACTION TAX GENERIC RATE Import of goods Customs 26.85% Domestic into India duty* Business Company 32.44% (net basis) Manufacture of Excise duty profits Foreign 12.36% Company 42.02% (net basis) goods in India (CENVAT)* Provision of Service Tax 12.36% Interest 21.01% specified services Import of 10.51% (gross basis) R&D Cess 5% Royalty/FTS technology 42.02% (net basis) Sale of goods VAT** 4% to 15% Short term 42.02% (net basis) intra-state Capital Gains* Long term 21.01% (net basis) Sale of goods 2%# or equivalent CST** inter-state to local VAT rate Branch NIL Entry of goods into Entry Tax / profit tax** 4% to 30% specific areas Octroi**Tax rate for Interest, Royalty, FTS & Capital Gains is for non-residentrecipient (subject to fulfillment of certain conditions under the Act). These * Customs / Excise duty rates would vary based on the description of the goodstax rates are applicable if income exceeds INR 10 million (USD 200,000 ** VAT/CST and Entry tax rates would vary based on the description of the goodsapprox.). and the State where the transaction is undertaken* assuming shares are unlisted** proposed under the Direct Taxes Code to be applicable from 2013-14