Gujarat Policy

7/28/2019 Gujarat Policy

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Investing in Gujarat


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India The Favoured Investment Destination

9.2% 9.0%

7.4% 7.4%8.6%

.0%

6.0%

8.0%

10.0%

Service Sector

Agriculture16%

0.0%

2.0%

2007 2008 2009 2010 2011

Trillion dollar economy - worlds 12th largest

55%Manufacturing

Sector29%

Steady GDP Growth

To FDI Destinations of the World

Services Sector21% Hardware and

SoftwareOther

FDI Top Sectors

Rank Countries

1 China

2 United States

3 India

8%Telecommunic

ations8%

Real estate

14%

Automobile

5%

5 Russian Federation

6 United Kingdom

The third most favored destination for FDIUSD 17 billion FDI inflow between April January 2011

India secured the top rank in availability of skilled manpower,access to local and international markets and strong market

fundamentals


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1. Strategic Location

ents

2. Strong Economy

3. Excellent Infrastructure

Con

t .5. Doing Business

6. Government Initiatives

7. Opportunities


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1. Strategic Location

Strategic location providing access to major international anddomestic markets

Located on the west coast of India and connected to major ports of UK, Australia,Middle East and East Asian economies

,

Gateway to land locked states in India


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2. Strong Economy

Leading investment destination with highly competitive investment climate

Gujarat's share in India 5th

largest economy Ahmedabad is rated as the third fastest growing city in theworld (2010) by Forbes magazine

Net Manufacturing value

No. of factories

Geographical area

Population

12%

10%

6%

5% Top contributor to Indian economy, around 22 % of Indianexports contributed by Gujarat

80%80%65%62%

51%

Contribution of Gujarat to India

Exports

Fixed capital investment

Value of output

22%

17%16%

35

sin

g

ond

sin

g

str

y

icals

icals

icals

One of the most industrialized state, with 38 % of GDPcontributed by secondary sector

Saltproce

Diam

proce

PlasticInd

Petrochem

Chem

Pharmaceut,

number of proposals in India

Delivering promises, the state with highest number of MoUand IEM realization


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3. Excellent Infrastructure

Gujarats excellent trade and transportation networks create better

market access and trade flows for companies

The Sardar Sarovar Narmada riverlinkage project, to create continuouswater supply throughout the state

A power sufficient state with one of thehighest per capita power consumptionHigh teledensity and excellent internet

connectivity in the state

Excellent road and rail network State with the highest number ofports and airports

The only Indian state with anintegrated state-wide Gas Grid


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4. Impetus to Industries

Taking a lead in creating the right kind of infrastructure with afocus on the future

12 Special Investment Regions of more than 100 sq km each being planned

1 Petrochemical and Petroleum Investment Region, 60 Special Economic Zones and existing 200 industrialareas, creating opportunities across sectors

38% of the planned Delhi Mumbai Industrial Corridor route is through Gujarat

Development of new industrial areas for agro parks, tourism , recreation and information technology


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5. Doing Business

A Globally competitive business destination with outstandinghuman capital

Availability of large pool of highquality human resources for all sectors

Home to some world renowned institutesin management, engineering and design

The land of entrepreneurs who arespread across the globe

Availability of high quality healthcare facilities

Government initiated schemes for womenempowerment, reducing infantilemortality and primary education support

State with one of the least utility costs, Taxesat par with other business destinations andglobally cost competitive labour force


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6. Government Initiatives

Conducive Business Environment

Awarded 2nd best state in Asia pacific category in Improving,

service by UN in 2010

Stable political climate

Urban development initiatives for high quality living

Sim lification of rocesses and sin le window a roach for investors

International campaigns for investment promotion across sectors Wide 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

Incentives under SEZ, SIR and Industrial Area development

Subsidies for environment protection

A leader in encouraging private participation under public-private partnership


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7. Opportunities

A 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 - creatingu .

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 valuechain

Opportunities in sunshine sectors like solar power andbiotechnology


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Chemicals and Petro Chemicals

Engineering and Auto

Food and Agro

Gems and Jewellery

ea care

Knowledge Sector

Mines and MineralsS

ector

riorit Oil and Gas

Pharmaceutical and Biotechnology

Ports, Shipbuilding and related Industries

Textiles

Tourism

Urban Development

Water Conservation and Efficient Use


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Chemicals and Petrochemicals

Basic Facts Hub of chemical industry in India, contributes to more than 62 % of national petrochemicals and 51% of

national chemical sector output Around 6,600 chemical and petrochemicals products are produced in the state

Select Players

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

Hi h erformance chemicals

Pigments and coating products

Geo Textiles

Engineering Polymers

Bio refineries

PP filament yarn

Acrylic fibres


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Engineering and Auto

Basic Facts

Highly industrialized state, with more than 38 % of GDP contributed by secondary sector

38% of planned Delhi Mumbai Industrial Corridor route is through Gujarat.

Select Players

15% contribution to total industrial production in Gujarat and more than 9% to national engineeringoutput

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, .

Having manufacturing plants of Tata Motors, Hyundai Heavy Industry and Bosch Rexroth India, state ismarching towards becoming auto hub of India


Turbines, transformers, generators

Power equipment manufacturing

Auto components and ancillaries

Infrastructure equipment

Assembling and manufacture ofautomobiles

Modern cement and textile machinery


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Financial Services

Basic Facts

State accounts for 30% of Indias stock market capitalization

State is home to 6,091 branches of Scheduled Commercial Banks including private sector

s per e a a re ease y , an s n u ara ave een u z ng a mos 100 o e sanc one cre

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 Pla ers


Core banking solutions

pp ca on eve opmen an ma n enance

Off-shoring centralizable operations

Back office processing of banking, financeservices and insurance companies like :

- -- -service

Equity research

Loan processing, etc.


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Food and Agro

Basic Facts

Out of the total geographical area of 196 lakh hectares in Gujarat, total cropped area is around 128

lakh hectares (65%)

-

Select Players

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,

banana and isabgul in the country.


Agri / horticulture infrastructure projects: colds orage, res ru s an vege a es pac ouse,mechanized grain handling and storage at port, FoodParks, terminal markets, irradiation centers.

Export-oriented processing

Value added rocessin based on local resources

Natural resources based opportunities: natural foodcolors, medicinal herbs extraction, tree oil based bio-pesticides, food


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Gems and Jewellery

Basic Facts Contributes 80% of total diamonds processed in India

Gujarats comparatively cheaper and skilled workforce can be effectively utilized to setuplarge low cost production bases for domestic and export markets


Jewellery Fabrication White Gold

Over 70% of total Gems and Jewellery exports of India

90% of total diamonds in Gujarat are processed by about 10,000 diamond units located inand around Surat

85% of unique handmade silver jewellery production of India

Platinum Jewellery

Paved Diamond Jewellery

Studded Jewellery

Jewellery Manufacturing Units

Assaying and Hallmarking Centres

Gold Refinery

Select Players

Jewellery Retail

Luxury Products such as Watches,Brooches, Clocks


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Healthcare

Basic 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

pec a y osp a sMost sought after SuperSpecialties in Gujarat include Cardiology, Neuro Surgery, Orthopedics, Infertility treatment, joint replacement

and eye surgeries Government striving towards making the state a global healthcare destination

Select Pla ersInvestment 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


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Knowledge Sector

Basic Facts

1,405 higher education institutions/colleges affiliated to various universities in the State Over 7 million students enrolled in different higher education courses

Select Players

274 co eges accre e y a e en o 2009 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

collages PPPs in school education

Creation of a Knowledge city Private universities under Private Universities Act

200


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Mines and Minerals

Basic Facts

The mineral and quarrying industry is more than USD 2 billion and employs more than 14,000 workers

Has total mineral reserves of more than 19,000 million tonnes Has stren th in non-metallic minerals which offer the best ros ects for ex loitation

Select Players

Houses about 6,500 mineral-based industries Possesses one of the highest reserves of lignite, limestone, perlite and clay deposits in India The only producer of agate and chalk in the country


Lignite Power plant, lignite chemicals (oil drilling) Underground coal gasificationBauxite

required investment of Rs. 4,000 crore Bauxite based refractoryLimestone/Cement industry 22 million tonne capacity to be added

Silica sand based glass industry Zinc and copper extraction projectsMarble quarrying & processing Lamellar china clay production


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Oil and Gas

Basic Facts

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

Select Players

, 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 Gujarats industrial output MoUs worth Rs. 110,347 crore signed in the O&G sector, in the previous Vibrant Gujarat


Gas distribution Gujarat is thefirst state to have a gas grid. City gas distribution projects areawaiting investments

Investments in PCPIR areincentivized


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Pharmaceutical and Biotechnology

Basic Facts Contributes 35% to the overall Indian pharma output Home to 40% Contract Research Organizations (CRO) in the country 22% of Indias pharma exports

InvestmentOpportunities

Manufacturin, Known as the hub of Indian pharmaceutical industry with over 5,400 manufacturing licenses. The landscape of Gujarat Biotech industry, consist of more than 50 Biotechnology companies and

66 support organizations The present annual turnover in biotechnology in Gujarat has been around USD 150 - 175 million

API & FormulationsMedical Equipment Pharmaceutical Machinery Healthcare ProductsVaccines Bio- harma and.

therapeutics

BT seeds and cropsServices Contract research Contract manufacturing

Select Players

Diagnostics Pharmaceutical Retail Stem cell banking Infrastructure

R&D Clinical research Genetic engineering Drug research and development


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Ports, shipbuilding and related industries

Basic 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 countrys cargo traffic State with 1 minor and intermediate orts

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 Indias biggest cargo handler by volume First Indian State to have an LNG terminal

Greenfield Ports Single Buoy Moorings Capacity augmentation at existing PortsMarine Tourism Projects

e ect P ayers


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Textiles

Basic Facts

Contributes 31% of Indian textile production Largest producer (35%) and exporter (60%) of cotton in the countryDen m pro uct on 3r argest n t e Wor an argest n In a 65-70%

Over 24% to 28% of fixed investment, production value and employment of Small Scale Industries (SSI) is from textiles sector Technical Textiles is a key emerging area with over 860 units in Gujarat (as per Government of Gujarats survey report)


Conventional Textiles

Ginning and Pressing Cotton & Synthetic based Spinning, Weaving

& Processing Units, Cotton Knitwear Terry Towel / Home Furnishing

High valued Garment ManufacturingTechnical Textiles Protective TextilesAgro Textiles

Geo TextilesAutomotive Textiles Home TextilesInfrastructure Development Cotton Integrated Textile and Apparel Park


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Tourism

Basic Facts

Total tourist number for Gujarat was around 16 million tourists in 2008, compared to less than 8 million in 2004, thus growing at aCAGR of about 20%

International tourists arrivals to Gujarat grew at a much higher CAGR of over 45% during the same periodAlmost 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%

InvestmentMedia & Entertainment

Projects

OpportunitiesBeach TourismProjects

- Film-studiosAmusement Parks Digital Gaming ZonesMultiplexes

es auran s Drive-in resorts Floating hotelsWater sportsMaritime museums

Sports ComplexWater Parks

Cruise services


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Urban Development

Basic Facts

Gujarat accounts for 6% of the total geographical area of the country and around 5% of the countrys population Gujarat - The Urbanized State of India - 43% share of urban population as compared to 28% share of urban population in India

a e o eve op severa w n c es on e nes o ew or an ew ersey State got 4 awards from Union Urban Development Ministry for implementation of JNNURM projects

Solid Waste Management State-wide Municipal Solid Waste Management Project 12 super-clusters planned through PPP Mode to cover areas of 8

Munici al Cor orations & 1 Munici alitiesEnergy 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 MWH

Gu arat International Finance Tec Cit GIFT 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


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Water Conservation and Efficient Use

Basic 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,

Gujarat has long coastline and two huge gulfs the Gulf of Cambay and the Gulf of Kutch - the entire Little Rann of Kutch andGreater Rann of Kutch are inundated with saline sea water for most of the year, deteriorating the ground water quality in adjoiningareas

Domestic and industrial water demand for the year 2025 are assessed to be 2,000 million cubic meters per year

Investment OpportunitiesMunicipal Water Treatment Plants Industrial Water Treatment Plants

aste water co ect on networMunicipal Waste Water Treatment Plants Industrial Waste Water Treatment Plants Rainwater HarvestingMicro-irrigation


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INDUSTRIALEXTENSIONBUREAU(AGOVT.OFGUJARATORGANISATION)

Block No. 18, 2nd Floor, Udyog Bhavan,Sector 11, Gandhinagar, 382 017, Gujarat, INDIA

Phone: 079-23256009, 23250492/3

ISO9001:2008Certi ie

-E-mail: [email protected]

Website:www.vibrantgujarat.com, www.indextb.com

Documents

Gujarat Policy