Gujarat is a leading investment destination in India, with a fast growing economy, business-friendly policies, and strong infrastructure. The state accounts for 16% of India's industrial production while having only 5% of the country's population. Key sectors include petroleum, chemicals, engineering and food processing. Gujarat offers attractive incentives for investment including tax holidays, duty exemptions, and 21 special economic zones to drive industrial growth.

1. Explore..Envision..Invest Gujarat: The Business State Of India Gujarat: Destination of Choice

5. Backed by strong fundamentals Indian economy in a resilient mode in terms of GDP growth… Positioned as the fourth largest economy in terms of purchasing power parity... … and will have the largest GDP grwoth rate … along with rising per capita GDP Consistently growing GDP (%) 1 Among the top 5 economies (PPP) 2005 2 Source: CMIE and Tata Statistical Outline of India 2000 2005 2010 2015 2020 One of the fastest growing economies 3 Per Capita GDP to improve by 7% through 2020 4 Source: Goldman Sachs; Dreaming with BRIC's: The path to 2050 Source: Industry sources, Economic Survey 5 year GDP growth rates 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2000-2005 2005-2010 2010-2015 2015-2020 India China Brazil Russia GDP Per Capita (US$) 5 year avg. growth 3.7% 7.4% 7.5% 468 559 804 1149

6. Racing the Dragon… India inches ahead of China India's growth model is termed as more sustainable than China… as it helps develop more efficient corporates, healthier banks, more robust service industries ... … with a strong banking sector and the benefit of high return on assets… … along with low NPL ratios China and India: Bank return on assets 7 India China India China 2000 2001 2002 2003 2004 China and India: NPL Ratios 8 % of total loans 2000 2001 2002 Democracy: India’s Competitive Advantage 5 Source: World Competitiveness Report, WEF (Rank out of 102 countries) Ease of Doing Business 6 Source: World Competitiveness Report, IMD, 2005 Source: China & India, Deutsche Bank Research Source: China & India, Deutsche Bank Research India ranks ahead of China 99 India China Freedom of Press Judicial Independence Property Rights 26 62 25 64 43 (Higher rank depicts poorer laws in the country)

7. India leads the pack Source: AT Kearney's 2004 Offshore Location Attractiveness Index* Source: IMD Yearbook, 2004 9 Racing the Dragon… India inches ahead of China 5.4 5.4 5.4 5.5 5.4 5.5 5.5 5.6 5.6 7.3 India has been rated as the most attractive investment destination with a cumulative score of 7.3 on a scale of 10 based on key parameters such as financial structure, business environment and people skill & availability Denmark India Singapore Philippines USA Germany Malaysia Hong Kong Russia Turkey South Korea Thailand Mexico Brazil China High Availability of Skilled labor 10

8. India’s Performance + - (1) Labour productivity for India highest in IT services vis-a-vis competing nations Note: Russia and China included as they will compete in specific areas despite aggregate shortages; Israel and Ireland not included because they are not expected to be significant competitors due to lack of manpower Source: World Competitiveness Yearbook 2001; Britannica Yearbook; BCG analysis Very Favourable Unfavourable India’s rise as a Strategic power.. Parameter India Indonesia China Mexico Philippines Russia Availability of workforce-quantity Availability of skilled workforce Cost of labour English language skills Cost and quality of telecom infrastructure Labour Productivity (PPP) 1 Perceived stability of government policies Perceived Operational Risk Risk of personal harm Risk of business disruption

9. Advantage India… Rated among the most favourite investment destinations (UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.) Cumulative assessment of decision factors places India as a superior destination for investments One of the lowest cost destination in the world Largest English speaking nation in the world One of the oldest stock exchanges in entire Asia Superb banking systems and well developed financial systems. Largest Democracy in the world 2nd largest pool of scientists and engineers in the World Harmonized Intellectual property rights laws Operates under English common law and based on English style justice system Advantage India Rated as the second best destination for manufacturing projects and the most attractive investment destination-I BM Best technology licensing regime - UNCTAD’s Global Competitiveness Report, 2003 India has been rated as the most attractive investment destination for offshoring

10. # !@ Introducing Gujarat: Land of Opportunities

11. Introducing Gujarat: Fast Facts Economic Snapshot 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%. Source: Socio-Economic Review, Gujarat State 2005-06 Gross State Domestic Product (GSDP) USD 38.4 Billion Manufacturing Sector USD 7.1 Billion Fixed Capital Investment USD 18.4 Billion Industrial Production USD 44.4 Billion Exports 14% of India Average growth rate 9% per annum Industrial growth rate 15% per annum Population Over 50 million (5% of India) Geographical Area 1,96,000 sq. km (6.19% of India) Business language English Per Capita Income (at current prices) USD 630 (National Average USD 516.5) Literacy Rate 69.9 % Inflation rate (WPI) 9.3 % Urbanisation 37.36% Per Capita Power Consumption 1,175 units (National Average: 592) Cellular Connection 41 per 1000 persons (National Average: 26) Motor Vehicles 118 per 1000 persons (National Average: 57)

12. Gujarat: The Growth Engine of India Gujarat: Sectoral Profile Contributing to India’s economy across all major sectors… Source: Socio-Economic Review, Gujarat State 2005-06 Gujarat: Share in Production Sector Share in Production (in %) Gujarat India Petroleum Products 34.0 38.1 Chemicals & Pharma 27.3 29.8 Engineering Industries 9.3 7.0 Food Processing 8.7 9.2 Textiles & Apparel 6.9 14.9 Metallurgical Ind. 6.2 11.1 Mineral Based Industries 2.4 12.0 Rubber & Plastic Prod. 1.9 9.6 Paper Production 1.1 10.5

13. Gujarat: Mosaic of business environments full of possibilities Gujarat: Industry Profile Gujarat offers a unique combination of a strategic geographic location, state-of-the-art infrastructure, multilingual workforce, and concentration of corporate and financial resources, all in a world-class pro-business environment. Source: Socio-Economic Review, Gujarat State 2005-06 Gujarat tops in Economic Freedom Index (Source: Rajiv Gandhi Institute for Contemporary Studies) Investment Environment is the best in Gujarat among big states of India and has recorded the fastest economic growth among all states (Source: India Today’s exclusive report “India’s Best & Worst States”, 15th August, 2005) Manufacturing Sector(GDP) USD 7.4billion Share in NSDP 31 % Small Scale Sector Units Over 3,10,000 Medium & Large Ind. Units Over 2,200 Number of Factories 12795 (9.9% in India) Workers engaged 0.73 million (9.3% of India) Fixed Capital Investment 18.2% of India Industrial Production USD 44.4 billion (16.1% share of India ) Value Addition USD 6.37 billion (13.2% share of India)

19. The Government of Gujarat has devised an investor friendly Industrial Policy, which is aimed at achieving global competitiveness. Industrial Policy Development of thrust industries Human resource development Labour law reforms Cluster development – SME sector Provide Information & facilitation Single window clearance State of the art Infrastructure Environment protection Regional development Key Initiatives Eleven different investment schemes have been introduced to promote investment in the State Government’s commitment to Industrial Development

22. Thriving Industrial Estates Providing the industry with ready to use and integrated facilities … Identified Plotted land, 24 hour power and water supply, water treatment plants, waste management centers, effluent disposal plants, environment protection facilities and much more… Cluster Details Panoli Vilayat Vaghodia Halol Dahod – II (Kharedi) Land Area Available & Allotment Price 150 hectares INR 300 per m 2 950 hectares INR 250 per m 2 45 hectares INR 100 per m 2 50 hectares INR 120 per m 2 120 hectares INR 170 per m 2 Power Supply Sub – Station 220/66 KVA Available – Yes Unit Price – INR 5 Sub – Station 220/66 KVA Available – Yes Unit Price – INR 5 Sub – Station 66 KVA Available – Yes Unit Price – INR 5 Sub – Station 66/11 KVA Available – Yes Unit Price – INR 5 Sub – Station 66/11 KVA Available – Yes Unit Price – INR 5 Water Supply Capacity 36 MLD Rate INR 11.90 KL Source – Narmada River Capacity 36 MLD Rate – NIL Source – directed to Dahej Capacity 4 MLD Rate INR 6.75 / KL Source – Bore Water Capacity 1.45 MLD Rate INR 8 / KL Source – Bore Water No Water Supply Scheme Availability of Gas Distributor Gujarat Gas Co ltd Estimated Price INR 9/9.50 per SCM Distributor Gujarat Gas Co ltd Estimated Price INR 9/9.50 per SCM Distributor G.A.I.L Estimated Price INR 9/9.50 per SCM Not Available Not Available

23. Promising Future for your investments Government of Gujarat is actively promoting business demand driven economic development which further aims to improve each of the factors relevant to business decision makers Source: E&Y Analysis Value Proposition Gujarat’s Position (2006) Discussion Lower Cost Gujarat has one of the lowest labour costs Talent Pool Gujarat dominates the talent pool needed to support the industries Quality of Talent Gujarat’s talent pool is capable of meeting global standards Delivery Capabilities ITO helped develop delivery model and vendor base to support industry Supply Base Gujarat has a vibrant and expanding supply base to support industry Local Market Gujarat is one of the fastest growing market Time to Market Gujarat’s geographic position offers the possibility of 24-hour cycle Growing Capacity Gujarat offers an economic of scale for capacity Increasing Productivity Gujarat offers highly skilled labour pool Support Customer Corporations are setting operations for offshoring, and local markets Government Incentives Government of Gujarat is working on incentives to attract FDI Financial Structure Matured Financial Institution Legal Framework Neutral and efficient legal systems Government Structure Investor friendly Democratic Government promoting entrepreneurs Weak Position Strong Position Gujarat’s Position (2020)

24. + Time to secure first-mover advantage in India Relaxing FDI norms Resplendent Market Booming Consumerism Vibrant Economy Is this the right time? … It is

26. Welcome to Gujarat Explore.. Envision.. Invest