Gujarat has experienced strong economic growth, with annual growth averaging 9% in the last 3 years. It accounts for 16% of India's industrial production despite having only 5% of the population. Key industries include petrochemicals, automotive, engineering, textiles, and chemicals. The state has developed infrastructure like ports, roads, and industrial parks to support business. There are opportunities for Japanese companies in sectors like infrastructure, IT, engineering, chemicals, and healthcare.

1. Presentation to METI - JETRO Business Mission by Government of Gujarat New Delhi, 6 February 2006

2. Gujarat: Economic Profile With 5% of India’s population, Gujarat has 16% of industrial production. Gujarat had an annual average growth of 9% in the last 3 years and an average industrial growth of 15%. 50.5 million (5%) Population 196,000 sq. km. (6%) Area Figures in brackets show % share of India ( Source: ASI ) 14% of India Exports US$ 39.72 billion (16.2%) Industrial Production US$ 17.9 billion (18.5%) Fixed Capital Investment US$ 5.17 billion Manufacturing sector US$ 19.27 billion (6.3%) NSDP (in 2003-04 at 1993-94 constant prices)

3. Gujarat: Economic Profile Source: Socio Economic Review – Gujarat State 2004 - 05 44% 40% Tertiary Sector 31% 33% Secondary Sector 25% 27% Primary Sector Rs. 886.62 Billion Rs. 425.60 Billion Net State Domestic Product at 1993-94 Constant Prices 2003-04 1993-94 Sector

4. India – Japan Bilateral Trade Cashew-nuts, Spices, Tea, Coffee, etc Chemicals & Allied Products Software Photography & Cinematography equipment Castor Oil and its derivatives Electric, Mechanical Machinery & Parts thereof Cotton Garments and Textiles Electronic Products Petroleum, Inorganic & Organic Chemicals Iron, Steel, Alloys and Parts thereof Marine Products Project Goods Iron Ore Motor Parts and Accessories Diamonds and Jewellery Ships, Boats, Floating Structures and Parts thereof India’s Current Exports (US$ 2.0 billion) (2.51% Share) India’s Current Imports (US$ 3.1 billion) (2.88% Share)

5. Gujarat: Sectoral Production ( Source: ASI )

6. Gujarat: Share in India Refined Petroleum Products 50% Drugs & Pharmaceuticals 45% Chemicals & Allied Products 31% Soda Ash 98% Caustic Soda 35% Polyester Filament Yarn 45% Textiles 15% Sponge Iron (HBI) 35% Fertilizers 30% Cement 9% Salt 70% Groundnut 35% Cotton 18% Psyllium Husk 100% Castor Seeds 70% (45% of world) Market Capitalization 30% 8 out of every 10 diamonds in the world are processed in Gujarat

7. MNCs in Gujarat Automobiles Engineering Plastics Engineering Plastics, Agro Chemicals Electricals Gas Gas Gas Container Port Management Container Port Management Pharmaceuticals Pharmaceuticals General Motors (Halol) GE Plastics (Vadodara) EI Du Pont (Vadodara) ABB (Vadodara) Shell (Surat) British Gas (Surat) Cairn Energy (Surat) P&O (Mundra) Maersk (Pipavav) Wyeth (Atul, Valsad) Sanofi Aventis (Ak’lwar)

8. MNCs in Gujarat (cont..) Pharmaceuticals Pharmaceuticals Dyes Inks Fine Silica Float Glass Polystyrene Agro Chemicals Agro Chemicals Engineering Plastics Pharmacia (Ankleshwar) Perstrop (Vapi) Ciba Specialty (Ankleshwar) Uber (Vapi) Huber (Jhagadia) Gujarat Guardian (Valia) BASF (Dahej) Bayer Cropscience (Ankleshwar) Cheminova (Panoli) Lanxess ABS (Vadodara)

9. Japanese Companies in Gujarat Electronics JCT Electronics Hitachi Displays Air Conditioners Hitachi Life & Home Solutions India Ltd. Hitachi Life & Home Solutions Inc. Refining of Crude Oil & Organic Chemicals Reliance Industries Ltd. C.ITOH & Co. Ltd. Dry Cell Battery Matsushita Lakhanpal Battery India Matsushita Electric Engineering L & T Chiyoda Corporation Cargo Handling & Port Infrastructure Adani Port Ltd. Kowa Company Ltd. Product/Sector/Area Indian Company Japanese Company

10. Japanese Companies in Gujarat Facsimile, Transceiver, Photocopiers Ricoh India Ltd. Ricoh Company Ltd. Automobile Cylinder Gaskets Banco Products Japan Metal Gasket Company Industrial Machinery Texprint Engineers Kyoto Machinery Technology for Cryogenic Tanks Inox India Ltd. Nippon Sanso Corporation Geared Motors and Reducers Power Build Elecon Gears Ltd. Seiki Kogyosho Chemicals India Gelatine and Chemicals Nichimen Product/Sector/Area Indian Company Japanese Company

11. Gujarat Strengths: Infrastructure Longest coastline in India – 1600 km. First state to privatize ports, railways and road transport 41 Ports - Cargo handled at Kandla, a major port 41.5 MMT (12% of India) - Cargo handled by minor and intermediate ports is 89.3 MMT (80% of India) Container Handling - P&O at Mundra & Maersk at Pipavav Chemical Port Terminal (3 MMT) - only one in India LNG Terminals at Dahej (5 MMT) & Hazira (5 MMT) Broad Gauge Rail network across the state 11 Airports with an International Airport at Ahmedabad Pioneering work in Energy, Water, Urban Development, Industrial Parks Gujarat Infrastructure Development Act – bringing transparency in PSP in infrastructure projects

12. Gujarat Maritime Board (GMB) has profiled investment opportunities in greenfield sites Draft : 15 mtr. Ship : 77000 DWT DPR:Sandwell-Canada Cargo: Agri & Bulk Draft : 20 mtr. Ship : 120000 DWT PFR:Rendal Palmer & Triton UK Cargo: LNG & Bulk Draft: 12 mtr. Ship: 60000 DWT PFR: STUP & The Dewager, Netherlands Cargo: Gas & POL Draft : 13 mtr. Ship : 30000 DWT PFR:Ramboll Denmark Cargo: Bulk-General Bedi Simar Mithivirdi Vansi Borsi

13. Investment / Business Opportunities in Port Sector Greenfield Port Projects Vansi Borsi Mithi Virdi Simar Bedi Ro–Ro Ferry Services including Coastal Traffic Development Ship Building & Ship Repairing Development of Modern Fishing Harbour Road & Rail Connectivity Infrastructure Container Terminal at Dahej Port Services & Storage Facilities Inland Water Transport

15. Energy: Gas Based Economy 2 LNG Terminals at Dahej & Hazira Gas Grid Project - 2200 km. long pipeline with 60-70 MMCD capacity RoU in Progress Under Construction Commissioned 750 Kms. P/L 450 Kms. P/L

16. SEZs & Industrial Parks Gujarat is the only state in India having labour flexibility and full relaxation in Labour laws in SEZs 83 product clusters - Chemicals, Drugs and Pharmaceuticals, Textile, Ceramics, Foundry, Engineering, Brass Parts, Fish Processing, etc. • Industrial Parks established in key industries such as Apparel, Gems & Jewelry, Biotechnology, Pharmaceuticals and IT & Electronics • Major amendments in labour legislations in SEZs • SEZs for Steel & Engineering, Auto Components and Industrial Machinery being processed • 11 SEZs 2 functional multi product SEZs (Kandla & Surat) 9 under development (Multi Product-3, Apparel-2, Gems & Jewellery-1, Electronics-1, Petroleum & Petrochemicals-1, Pharma-1) •

17. Gujarat: Urban Development Gujarat is one of the most urbanized states in India, with 40% urban population The state had declared 2005 as the Year of Urban Governance Ahmedabad declared a Mega City Under the Sabarmati Riverfront Project in Ahmedabad, a 9 km riverfront is being developed in the 1st phase on both sides of the river MRTS and BRTS are being planned in Ahmedabad Transformation of Surat as the cleanest city in India Piped cooking gas system started through PSP CNG promoted in a big way in urban transportation system Modern SWM in place in Ahmedabad and Surat. To be extended to other cities through local bodies and PSP

18. Environmental Infrastructure 6 Hazardous Solid Waste Disposal sites Vatva, Naroda, Nandesari, Ankleshwar*, Surat*, Vapi* (* ISO 14001 Certified) 6 Treated Effluent Conveyance Pipelines Ahmedabad, Vadodara, Dahej, Ankleshwar, Sachin, Sarigam 19 Common Effluent Treatment Plants 4 Hazardous Industrial Waste Incinerators Nandesari, Ankleshwar, Surat, Vapi Gujarat Cleaner Production Centre

19. Gujarat: Engineering & Automotive Source: Government of Gujarat Anchor Industries Essar Steel: Sponge Iron (2.4 MT), expanding to 6.4 MT Hindalco: Copper Rods (250,000 MT), doubling capacity Elecon Engineering: Largest manufacturer of industrial gears Gujarat Apollo: Largest producer of road-making equipment Kalpataru Power Transmissions: Largest capacity plant in the world Other Key Investors: GM, L&T, ABB, Videocon & Jyoti Engineering Sound Base Largest producer of sponge iron and SAW & ERW pipes Important center for the manufacture of textile machinery, chemical machinery, pollution control equipment, printing machinery, compressors, bearings, TV tubes and clocks Important manufacturer of power generation plants, switchgears, transformers and transmission line towers Largest ship breaking yard in the country (Alang) 27 Clusters – castings & machine tools, brass parts, oil engines & electric motors, submersible pumps, industrial valves & bearings, auto-ancillaries

20. Gujarat: Chemicals & Petrochemicals Source: Government of Gujarat Anchor Industries GSFC: Diversified Fertilizer and Chemical product portfolio. About US$ 650 million of investment. India’s first joint sector industrial complex Reliance: State of the art Petroleum Refinery at Jamnagar with capacity of 27 million tonnes per annum (540,000 barrels per day) Torrent: Dominant player in the therapeutic areas of Cardiovascular (CV) and Central Nervous System (CNS) Other Key Investors: BASF, Bayer, Rallis India, Alembic, IPCL, Novartis, Zydus, Ranbaxy, Cadila, IFFCO, etc. Sound Base The largest contributor to Chemical and Petrochemical Industry of India Well developed infrastructure for manufacturing, storing, transporting and effluent treatment Home to some of the largest chemical estates in Asia (Vapi, Ankleshwar) 4 Petrochemical Complexes, 2 large Petroleum Refineries and 6 large Chemical-Fertilizer Complexes Special Economic Zone for Petroleum and Petrochemical Sector Over 1360 large and medium scale Chemical & Petrochemical projects with investment exceeding US$12.3 billion

21. Gujarat: Textiles and Apparel Source: Government of Gujarat Anchor Industries Arvind: Shirting, Knits, Khakhis and ready to wear garments. A leading manufacturer of Denim in the world Welspun: Home Textiles & Made ups. Amongst the top 3 Terry Towel producers in the world Other Key Investors: Reliance, Ashima, Dinesh, Raymonds, Aarvee, etc. Sound Base Largest producer of cotton in the country and a major source for man-made fabric Modern process houses with environment friendly technology Largest supplier of Denim in the world. Textile industry in Gujarat accounts for 30% of woven fabrics in organized sector in country. Surat in South Gujarat, contributes 40% of Art Silk fabric produced in India Apparel Parks at Surat and Ahmedabad declared as Special Economic Zones with flexible labour laws Gujarat contributes about 12% of the total textile exports of the country Over 1000 medium and large scale textile projects with investment exceeding US$ 2.82 billion have been commissioned and about 300 projects are under implementation

22. Gujarat: Strengths in IT-ITES Source: Nasscom, Knight Frank, Cushman & Wakefield, Colliers Jardine, Cochinnet.com, A.T. Kearney analysis Infrastructure Telecom: Highest number of phone connections - 12 per 100 persons; highest n umber of ISPs in the country India’s longest OFC network First Software Technology Park in India. 3 IT Parks – Infocity in Gandhinagar, GNFC Tower & Astron Tech Park in Ahmedabad Capability Ahmedabad has developed sound capabilities in Web Development Services, call/contact centers & BPO operations – 8 large companies. Manpower Premier Educational and Research facilities Computer Education is compulsory in schools Manpower rates - US$ 3.70 / shift in Ahmedabad (US$ 5.00 in Pune, US$ 9.00 in New Delhi, US$ 9.20 in Mumbai) Lowest attrition rate in the BPO sector among all other states Location Economical Real Estate: Monthly rentals - US$ 36 / 100 sq. ft. in Ahmedabad (US$ 78 in Pune, US$ 127 in Delhi, US$ 193 in Mumbai)

23. Strengths in IT-ITES (cont….) Source: Government of Gujarat Government Support Single Window facilitation mechanism Incentives in real estate, power and telecom facilities Science &Technology Department for implementation of IT Policy with Gujarat Informatics Ltd. as corporate arm Creation of Information Corridor between state capital and districts 3% of budget committed to IT related activities Private sector participation encouraged in Creation of Information Corridor Setting up Information Kiosks Provision of Database oriented services Setting up of Information Infrastructure IT Plan submitted by National Task Force has targeted one PC per 50 persons by 2008. Gujarat aims to achieve this by 2006 Venture Capital Fund for IT services, IT software and IT products

24. Gujarat: Other USPs Gujarat is the numero uno state in India in industrialization Least mandays lost due to industrial unrest – 0.94 % of the country while contributing 16.2% of India’s industrial production Major state owned enterprises turned around during the last 4 years 302 investment proposals worth US$ 38.2 billion received during the Global Investors’ Summits in 2003 & 2005. Kutch, a backward pastoral district – ravaged by the worst earthquake of the century just 5 years ago, is now on way to unprecedented economic prosperity Gujarat is committed to maintain its double digit economic growth

25. Japan – Gujarat: Potential Scope for Japanese Companies in Gujarat Infrastructure, including SEZs and Real Estate Development Transport Infrastructure Project such as Mass Rapid Transit Systems for rail and bus Ports, including Port & Cargo Management, Integrated Solutions in Marine Logistics IT, ICT, ITES, High-end Electronics – Japanese Companies can set up IT and Electronics Industrial Parks Engineering – Jointly develop an auto-ancillary Industrial Park for export of auto components Chemical and Allied Industries – Technology Transfer Tourism – Theme Parks, Tourist Trails, Special Entertainment Zones. Gujarat is celebrating 2006 as Tourism Year Healthcare – Gujarat accounts for 31% of the country’s Medical Tourism Biotechnology, Nano-science, Electronics, Communication Technology, etc.

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