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Why gujarat


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Why gujarat

  1. 1. Investing in Gujarat
  2. 2. India – The Favoured Investment Destination Strong Economy GDP Growth Agriculture 10.0% 9.2% 9.0% 8.6% 16% 7.4% 7.4% 8.0% 6.0% Service Sector 4 4.0% 55% Manufacturing 2.0% Sector 0.0% 29% 2007 2008 2009 2010 2011 Trillion dollar economy - world’s 12th largest Steady GDP Growth FDI – Top Sectors Services Sector 21% Hardware and Other 44% Software Top FDI Destinations of the World p 8% Telecommunic Rank Countries ations 1 China 8% 2 United States Automobile Real estate 5% 14% 3 India 4 BrazilIndia secured the top rank in availability of skilled manpower, 5 Russian Federation access to local and international markets and strong market The third most favored destination for FDI fundamentals USD 176billion FDI inflow between April – January 2011 United Kingdom
  3. 3. 1. Strategic Location 2. Strong EconomyContents 3. Excellent Infrastructure 4. 4 Impetus to Industries 5. Doing Business 6. Government Initiatives 7. ii Opportunities
  4. 4. 1. Strategic Location Strategic location providing access to major international andLocated on the west coast of India and connected to major ports of UK, Australia, domestic marketsMiddle East and East Asian economies1,6001 600 km coast line –offers numerous opportunities for port based industries offers Gateway to land locked states in India
  5. 5. 2. Strong Economy Leading investment destination with highly competitive investment climate Gujarats share in India – 5th largest economy Ahmedabad is rated as the third fastest growing city in the world (2010) by Forbes magazine Population 5% Top contributor to Indian economy, around 22 % of Indian Geographical area 6% exports contributed by Gujarat No. of factories 10%Net Manufacturing value 12% Value of output 16%Fixed capital investment Contribution of Gujarat to India 17% Exports 80% 80% 22% 65% 62% 5 51% 35% %One of the most industrialized state, with 38 % of GDPcontributed by secondary sector ssing ssing ticals micals micals ustry DiamondSustained investor confidence, the state with the highest confidence Plastic Indu proces Salt proces Chem Petrochemnumber of proposals in India PharmaceutDelivering promises, the state with highest number of MoUand IEM realization
  6. 6. 3. Excellent Infrastructure Gujarat’s excellent trade and transportation networks create better market access and trade flows for companiesThe Sardar Sarovar Narmada river A power sufficient state with one of thelinkage project, to create continuous High teledensity and excellent internet highest per capita power consumptionwater supply throughout the state connectivity in the stateThe only Indian state with an State with the highest number of Excellent road and rail networkintegrated state-wide Gas Grid ports and airports
  7. 7. 4. Impetus to Industries Taking a lead in creating the right kind of infrastructure with a focus on the future12 Special Investment Regions of more than 100 sq km each being planned1 Petrochemical and Petroleum Investment Region, 60 Special Economic Zones and existing 200 industrialareas, creating opportunities across sectors38% of the planned Delhi Mumbai Industrial Corridor route is through GujaratDevelopment of new industrial areas for agro parks, tourism , recreation and information technology
  8. 8. 5. Doing Business A Globally competitive business destination with outstanding human capital Availability of large pool of high Home to some world renowned institutes quality human resources for all sectors The land of entrepreneurs who are spread across the globe in management, engineering and design Government initiated schemes for womenState with one of the least utility costs, Taxes Availability of high quality health empowerment, reducing infantileat par with other business destinations and care facilities mortality and primary education supportglobally cost competitive labour force
  9. 9. 6. Government Initiatives Conducive Business EnvironmentAwarded 2nd best state in Asia pacific category in ‘Improvingtransparency, accountability and responsiveness in publicservice’ by UN in 2010Stable political climateUrban development initiatives for high quality livingSimplification of processes and single window approach for investors p p g ppInternational campaigns for investment promotion across sectorsWide array of choices for tourists right from heritage monuments,archeological sites , wild life and beaches Favorable policy and regulatory environment Industrial Policy 2009– for high quality socio economic development Sectoral policies for promotion of investment and growth Incentives under SEZ, SIR and Industrial Area development Subsidies for environment protection A leader in encouraging private participation under public-private partnership
  10. 10. 7. OpportunitiesA land of immense opportunities, an opportunity for everyone Industry specific advantages – in a slew of sectors Presence of more than 370,000 MSMEs in the state Strong growth of agriculture and horticulture - creating opportunities in agro ocessi g o o t ities i ag o processing. Historically strong gems and jewelry sector Strong mineral base Large investments requirement in infrastructure Opportunities in ports and port based industries Opportunities in the tourism industry spread across the value chain Opportunities in sunshine sectors like solar power and biotechnology
  11. 11. Chemicals and Petro Chemicals Engineering and Auto Financial Services Food and Agro Gems and JewelleryPriority Sectors s Healthcare H lth Knowledge Sector Mines and Minerals y Oil and Gas Pharmaceutical and BiotechnologyP Ports, Shipbuilding and related Industries Textiles Tourism Urban Development Water Conservation and Efficient Use
  12. 12. Chemicals and PetrochemicalsBasic Facts Hub of chemical industry in India, contributes to more than 62 % of national petrochemicals and 51% of national chemical sector output Select Players Around 6,600 chemical and petrochemicals products are produced in the state More than 35% of large and medium units in states Around 16% of employment in the state Leads all states in India in terms of investments committed in chemical and petrochemical sector Large quantity of production of basic chemicals caustic soda, caustic potash and chloromethane Largest supplier of bio fertilizers, seeds, urea and other fertilizers Investment Opportunities High performance chemicals Pigments and coating products Geo Textiles Engineering Polymers Feedstock linkages Bio refineries PP filament yarn Acrylic fibres
  13. 13. Engineering and AutoBasic Facts Select Players Highly industrialized state, with more than 38 % of GDP contributed by secondary sector 38% of planned Delhi Mumbai Industrial Corridor route is through Gujarat. 15% contribution to total industrial production in Gujarat and more than 9% to national engineering output More than 30 industrial clusters in the engineering sector 9,607 Industrial Entrepreneurs Memoranda (IEM) filed till June 2010 with an estimated investment of Rs 7 702 billion and employment potential of 1 9 million 7,702 1.9 Having manufacturing plants of Tata Motors, Hyundai Heavy Industry and Bosch Rexroth India, state is marching towards becoming auto hub of India Investment Opportunities Turbines, transformers, generators Power equipment manufacturing Auto components and ancillaries Infrastructure equipment Assembling and manufacture of automobiles Modern cement and textile machinery
  14. 14. Financial ServicesBasic Facts State accounts for 30% of India’s stock market capitalization State is home to 6,091 branches of Scheduled Commercial Banks including private sector As A per th d t released b RBI B k i G j t h the data l d by RBI, Banks in Gujarat have b been utilizing almost 100% of th sanctioned credit tili i l t % f the ti d dit 142 branches of Life Insurance Corporation of India (the market leader) MSMEs: Over the last three years (from 2007 to 2010), about Rs. 8,000 crore of investment is being made in setting up MSMEs in Gujarat Select Players y Investment Opportunities Core banking solutions Application development and maintenance A li ti d l t d i t Off-shoring centralizable operations Back office processing of banking, finance services and insurance companies like : • In-bound an out-bound customer service • Equity research • Loan processing, etc.
  15. 15. Food and AgroBasic Facts Out of the total geographical area of 196 lakh hectares in Gujarat, total cropped area is around 128 Select Players lakh hectares (65%) Produced 218 million tonnes of food grains in 2009-10 2009 10 Wheat, Bajra, Rice, Maize, Groundnut, Mustard, Sesame, Pigeon pea, Green Gram, Gram, Cotton, Sugarcane are the major crops Gujarat has highest productivity in custard, castor, guava, potato, onion, cumin, fennel and cotton, second highest productivity in groundnut and bajra, third highest productivity in gram, guar, b banana and isabgul in the country. d b l h Investment Opportunities Agri / horticulture infrastructure projects: cold storage, f h f it and vegetables pack h t fresh fruits d t bl k house, mechanized grain handling and storage at port, Food Parks, terminal markets, irradiation centers. Export-oriented processing Value added processing based on local resources p g Natural resources based opportunities: natural food colors, medicinal herbs extraction, tree oil based bio- pesticides, food
  16. 16. Gems and Jewellery Basic Facts Investment OpportunitiesContributes 80% of total diamonds processed in IndiaGujarat’s comparatively cheaper and skilled workforce can be effectively utilized to setup Jewellery Fabricationlarge low cost production bases for domestic and export markets White GoldOver 70% of total Gems and Jewellery exports of India f l d ll f d Platinum Jewellery90% of total diamonds in Gujarat are processed by about 10,000 diamond units located inand around Surat Paved Diamond Jewellery85% of unique handmade silver jewellery production of India Studded Jewellery Infrastructure Development Select Players Jewellery Manufacturing Units Assaying and Hallmarking Centres Gold Refinery Diamond Park Jewellery Retail Luxury Products such as Watches, Brooches, Clocks
  17. 17. HealthcareBasic Facts Share of primary care in total healthcare market of Gujarat is around 75-80% Gujarat offers holistic medicinal services and cost effective treatment through various district hospitals, sub-district hospitals and Private S Specialty H i lt Hospitals it l Most sought after Super–Specialties in Gujarat include Cardiology, Neuro – Surgery, Orthopedics, Infertility treatment, joint replacement and eye surgeries Government striving towards making the state a global healthcare destination y Select Players Investment Opportunities Integrated Health-City Hi-tech MRI/CT scan Facilities Chain of Primary Public/Community Centres Hospital Management on Rehabilitate, Operate and Transfer (ROT) basis Clinical Research & Trials
  18. 18. Knowledge SectorBasic Facts Select Players 1,405 higher education institutions/colleges affiliated to various universities in the State Over 7 million students enrolled in different higher education courses 274 colleges accredited b NAAC at th end of 2009 ll dit d by t the d f Gunotsav – Quality improvement program for schools Kanya Kelavani Rath Yatra & Shala Praveshotsav – Children (particularly girl child) enrollment program Opportunities for PPP Public Private Partnerships in education PPPs for Skill development institutions PPPs for degree and diploma engineering collages PPPs in school education Creation of a Knowledge city Private universities under Private Universities Act 2009
  19. 19. Mines and Minerals Basic Facts Select PlayersThe mineral and quarrying industry is more than USD 2 billion and employs more than 14,000 workersHas total mineral reserves of more than 19,000 million tonnesHas strength in non-metallic minerals, which offer the best prospects for exploitation g , p p pHouses about 6,500 mineral-based industriesPossesses one of the highest reserves of lignite, limestone, perlite and clay deposits in IndiaThe only producer of agate and chalk in the country Investment Opportunities Lignite Power plant, lignite chemicals (oil drilling) Underground coal gasification Bauxite GMDC coming up with new projects with a required investment of Rs. 4,000 crore Bauxite based refractory Limestone/Cement industry 22 million tonne capacity to be added Others Silica sand based glass industry Zinc and copper extraction projects Marble quarrying & processing Lamellar china clay production
  20. 20. Oil and GasBasic Facts Select Players Contributes 53% and 31% to Indian Crude Oil and Natural Gas production respectively Only state in India with a 2,200 km integrated gas grid that is operated on an open access, access common carrier principle It has the highest number of Oil and Gas fields in India (84 out of 219). It has 167 wells with a metreage of 0.3 million Petroleum products constitute 33% of Gujarat’s industrial output MoUs worth Rs. 110,347 crore signed in the O&G sector, in the previous Vibrant Gujarat Summits Investment Opportunities Oil & Gas refining Gas distribution – Gujarat is the first state to have a gas grid. City gas distribution projects are awaiting investments Investments in PCPIR are incentivized
  21. 21. Pharmaceutical and BiotechnologyBasic Facts Investment Contributes 35% to the overall Indian pharma output Home to 40% Contract Research Organizations (CRO) in the country Opportunities 22% of India’s pharma exports Employs around 63 000 people in the state 63,000 Manufacturing Known as the hub of Indian pharmaceutical industry with over 5,400 manufacturing licenses. API & Formulations The landscape of Gujarat Biotech industry, consist of more than 50 Biotechnology companies and Medical Equipment 66 support organizations Pharmaceutical Machinery The present annual turnover in biotechnology in Gujarat has been around USD 150 - 175 million Healthcare Products (Rs 700 crore) (Rs. Vaccines, Bio-pharma and , p therapeutics Select Players BT seeds and crops Services Contract research Contract manufacturingg Diagnostics Pharmaceutical Retail Stem cell banking Infrastructure R&D Clinical research Genetic engineering Drug research and development
  22. 22. Ports, shipbuilding and related industriesBasic Facts Ports in Gujarat handled 205 MMT of cargo traffic in 2009-10, which will increase to over 500 MMT in 2-3 years. With the doubling of cargo handling capacity, the state will be handling more than 40% of the country’s cargo traffic State with 41 minor and intermediate ports 4 p State to interlink 45 ports using integrated port management system One of the largest ship recycling yards in the world - at Alang Kandla port is India’s biggest cargo handler by volume First Indian State to have an LNG terminal Investment Opportunities Greenfield Ports Single Buoy Moorings Capacity augmentation at existing Ports Marine Tourism Projects S l Pl Select Players
  23. 23. Textiles Basic FactsContributes 31% of Indian textile productionLargest producer (35%) and exporter (60%) of cotton in the countryD i production – 3rd lDenim d i d largest i the W ld and l in h World d largest i I di (6 %) in India (65-70%)Over 24% to 28% of fixed investment, production value and employment of Small Scale Industries (SSI) is from textiles sectorTechnical Textiles is a key emerging area with over 860 units in Gujarat (as per Government of Gujarat’s survey report) Investment Opportunities Select Players Conventional Textiles Ginning and Pressing Cotton & Synthetic based Spinning, Weaving & Processing Units, Cotton Knitwear Terry Towel / Home Furnishing High valued Garment Manufacturing Technical Textiles Protective Textiles Agro Textiles Geo Textiles Automotive Textiles Home Textiles Infrastructure Development Cotton Integrated Textile and Apparel Park
  24. 24. TourismBasic Facts Total tourist number for Gujarat was around 16 million tourists in 2008, compared to less than 8 million in 2004, thus growing at a CAGR of about 20% International tourists arrivals to Gujarat grew at a much higher CAGR of over 45% during the same period Almost 2% of tourists in Gujarat are international tourists (higher than the 1% figure for India) – moreover, the point to be observed here is that international tourist arrivals to Gujarat is growing at a CAGR of over 45% Investment Opportunities Media & Entertainment Beach Tourism Projects Projects Film cities Film-cities R t t Restaurants Film-studios Drive-in resorts Amusement Parks Floating hotels Digital Gaming Zones Water sports Multiplexes Maritime museums Sound & Light Shows Sea Park / Aquarium Sports Complex Cruise services Water Parks
  25. 25. Urban DevelopmentBasic Facts Gujarat accounts for 6% of the total geographical area of the country and around 5% of the country’s population Gujarat - “The Urbanized State of India” - 43% share of urban population as compared to 28% share of urban population in India St t t d l several t i cities on th li State to develop l twin iti the lines of N Y k and N J f New York d New Jersey State got 4 awards from Union Urban Development Ministry for implementation of JNNURM projectsInvestment OpportunitiesSolid Waste Management State-wide Municipal Solid Waste Management Project 12 super-clusters planned through PPP Mode to cover areas of 8 Municipal Corporations & 159 MunicipalitiesEnergy Efficiency Baseline data collection and pre-energy audit completed in 159 Municipalities and 6 Municipal Corporations Total annual energy saving potential is approx. 2.3 lakh MWHGujarat International Finance Tec City (GIFT) j y( ) GIFT targets to tap 6-8% share of the financial services potential in India Creation of about 500,000 direct and equal number of indirect jobs
  26. 26. Water Conservation and Efficient UseBasic Facts Most parts of the State comes under scarcity prone area – total fresh water availability is only 1,137 cu.m. per capita per annum, over 70% of which is limited to South Gujarat The distribution pattern of rainfall in the state ranges from over 2 000 mm in the Dangs in South Gujarat to about 200 mm in Kutch 2,000 Gujarat has long coastline and two huge gulfs – the Gulf of Cambay and the Gulf of Kutch - the entire Little Rann of Kutch and Greater Rann of Kutch are inundated with saline sea water for most of the year, deteriorating the ground water quality in adjoining areas Domestic and industrial water demand for the year 2025 are assessed to be 2,000 million cubic meters per yearInvestment Opportunities Municipal Water Treatment Plants Industrial Water Treatment Plants W t water collection network Waste t ll ti t k Municipal Waste Water Treatment Plants Industrial Waste Water Treatment Plants Rainwater Harvesting Micro-irrigation
  27. 27. iNDEXTb INDUSTRIAL EXTENSION BUREAU  (A GOVT. OF GUJARAT ORGANISATION) ISO 9001:2008 Certified SO 900 2008 C ifi d Block No. 18, 2nd Floor, Udyog Bhavan, Sector 11, Gandhinagar, 382 017, Gujarat, INDIA Phone: 079-23256009, 23250492/3 Fax: 079 23250490 079-23250490 E-mail: indextb@indextb.comWebsite:,