Business Opportunities in Gujarat

India’s Economic Expressway

Gujarat: Socio-Economic Snapshot

6% of India’s Geographical Area: 1,96,000 sq. km.

5% of India’s population:~ 60 million

7.5% of India’s GDP`

19% of India’s exports

11% of India’s factories

19% of India’s industrial output

41% of India’s Port Cargo handled by Gujarat ports

India’s 3rd highest wind (3900 MW) and solar (1100 MW) capacity 1

Gujarat: Robust Physical, Social & Urban Infrastructure

Second-most urbanized state in India, with 43%

urban population

One of the leaders in tapping unconventional

sources of energy

Power surplus state, 24/7 uninterrupted quality

power supply

79,000 km of well surfaced

roads

48 Major & Minor Ports

2 International and 16 Domestic Airports

A State-wide Water Grid across 120,000 km

2400 km state-wide Integrated Gas Grid

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Gujarat rated as Top Performing State as per NCAER* State Investment Potential Index (Feb 2016)

• Gujarat secured 1 rank as per the N-SIPI 21, which evaluated each state on 5 key pillars (labour, infrastructure, economic conditions, political stability & governance, perceptions of a good business climate)

• State rated top performing in• Power Availability• Number of Airports• Governance & Political Stability• Infrastructure• Land Availability

*NCAER – National Council of Applied Economic Research3

Gujarat ranked 1 in Ease of Doing Business 2015

1st • Complying with environment procedures

2nd• Allotment of Land & Construction Permits

• Complying with labor regulations

• Obtaining infrastructure related utilities

• Carrying out inspections

3rd • Enforcing contracts

Gujarat achieved the top spot amongst all states in DIPP & World Bank’s EODB Index 2015

Gujarat is among the top 3 States as per EODB Index 2016

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Gujarat achieves top rank in Economic Freedom Index of the States of India (2013)

• According to the latest Freedom of States of India (EFSI) Report by The Cato Institute, Friedrich NaumannFoundation and Indicus Analytics, Gujarat bagged number ONE rank in Economic Freedom Index

• Economic Freedom Index based on three parameters:• Size of Government (expenditure, taxes & enterprises)• Legal structure and security of property rights• Regulation of Labour & Business

• Gujarat not only emerged as the top ranked state, it also registered the fastest rate of improvement (ranked 5 in year 2005)

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Gujarat has consistently been among the top 5 FDI recipients

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2000 to 2010 2011 to 2016

FDI inflow to Gujarat (USD billion)

Telecommunications31%

Power25%

Metallurgical industries

16%

Petroleum & Natural Gas

14%

Services14%

FDI is mainly in Infrastructure and Manufacturing

Robust FDI outlook in Auto & Auto Components, Aerospace & Defense, ESDM,

IT & ITeS, Chemicals & Petrochemicals, Ports & Port Services, HealthcareSource: Department of Industrial Policy & Promotion – Government of India 6

Gujarat is a National Leader in 15 Manufacturing Sectors

Gujarat’s contribution to India in key products (% output)

91%

80%77%

65%62%

53%

35%30% 29%

24%19%

• CAGR of investments in manufacturing sector in the last 6 years is 19%, highest in India

• Gujarat's manufacturing sector contributes over 25% to the state GSDP, much higher than the national average

• Gujarat accounted for the maximum number of Industrial Entrepreneur Memorandums (IEMs) in India in 2015

• Robust base of large scale industries and over 2 million Micro, Small and Medium Enterprises providing employment to 15 million people

Source: Department of Industrial Policy & Promotion, Annual Survey of Industries – Government of India

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Gujarat – A Policy Driven State

Electronics Policy 2016

IT Policy 2016

General Incentives Scheme 2016

Sports Policy 2016

Industrial Policy 2015/2016

Wind Power Policy 2016

Solar Power Policy 2015

Startup Scheme 2015

Agri-Business Policy 2016

Manufacturing Policy 2013

Tourism Policy 2015

Textile Policy 2012/2013

Rural & Cottage Industries Policy 2016

Upcoming Policies

Aerospace and Defense,

Biotechnology,Plastics

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Gujarat is gearing up to be one of Asia’s largest Automobile and Auto Components hub

• Investment of USD 2 billion realized till 2015, and additional USD 3.2 billion committed by 2020

• Automobile Sector accounts for about 13% of the total FDI received by Gujarat. State has a sound base of 30 clusters comprising of castings, brass parts, electric motors, bearings, auto-ancillaries

• State will have an installed capacity of over 4 million automobiles per annum in the short term

Source: Industry Reports9

Gujarat is emerging as a Global Pharmaceuticals Hub

• Gujarat accounts for:

• 40% of India’s pharma production

• 28% of India’s pharma exports

• 40% of CROs

• 40% of CRAMS companies

• Over 3300 manufacturing units located across the state in four large clusters

• 5 Special Economic Zones with a total area of over 1500 hectares

India’s first Pharmacy College (L.M. Pharmacy College) was established in Gujarat. The state

has over 160 pharmacy colleges

Presence across the value chain

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Gujarat is a leader in Chemicals & Petrochemicals Sector

• Gujarat accounts for:

• 62% of India’s petrochemicals production

• 30% of other chemicals production

• 18% of India’s exports in this sector

• 500 large and medium units and 16,000 small scale units in the state manufacture over 6,500 products

• Presence across the entire chemical value chain which enables cost competitive production, suitable for exports

Gujarat is the first and the only state to have an operational Petroleum,

Chemical and Petrochemicals Investment Region (PCPIR), developed

over an area of 453 sq. km

Gujarat’s share in India’s production of major chemicals

Source: Industry Reports

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Gujarat has a well established value chain in Textile Sector

Gujarat Textile Incentive Policy 2012 played a pivotal role in attracting investment of Rs. 15,000 crore ($ 2.5 bn) in last 3 years

Farm Fiber FabricFashion

(Garment)Foreign (export)

• Largest producer and exporter of cotton

• Largest number of medium & large textile processing units

• Over 1200 cotton ginning units

• Largest producer of manmade & filament fabric (40% of India)

• 25% of India’s technical textile output

• Largest producer of denim in India (65%) and 3rd largest in the world. 1 billion mtr. capacity

• 12% of textile exports of the country

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State has ambitious plans for the Aerospace & Defence Sector

• Aviation Park to come up in Gujarat nearAhmedabad, over an area of 90 hectares. It wouldserve as a one-stop destination in aerospacetraining, research and manufacturing

• Government of India to setup Regional NationalSecurity Guard (NSG) hub in Gujarat

• A large number of MSMEs in engineering, electronicsand other manufacturing, and 106 MSME clusters -providing the right ecosystem

• Government of Gujarat has sanctioned the SiemensCenter of Excellence in Aerospace & Defence inAhmedabad

Gujarat has received 22 licenses out of 121for defence equipment manufacturing in last18 months – highest in India

Dahod

Kutch

Amreli

Vadodara

Kheda

Bhavnagar Bharuch

State Government has announced a comprehensive Aerospace & Defense Policy. Draft Policy put up on www.imd-gujarat.gov.in/Document/2016-3-19_32.pdf for feedback from industries

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State has an enabling ecosystem for Agro and Food Processing

• Over 30,000 food processing units operational in Gujarat

• Leading producer of Banana, Mango, Sapota (Chikoo),Onion, Potato and Seed Spices

• 4th largest producer of Milk, offering ample downstreamprocessing opportunities

• 20 fish landing centers & 5 operational fishing harbors.

Gujarat Government’s AgriBusiness Policy 2016 offers several incentives such as:

• Capital Subsidy• Interest Subsidy• VAT Reimbursement• Freight Subsidy• Power Tariff Incentive,

etc

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Gujarat has pioneered in tapping unconventional sources of Energy

• Gujarat has the third highest (next to Tamil Nadu & Rajasthan) solar power installed capacity in India

• State has one of Asia’s first & largest Solar-Wind Hybrid Park (600 MW). The park has capacity to generate 500 MW of Solar Power & 100 MW of Wind Power

• Gujarat initiated the India’s first canal based solar power project

• Gujarat has a gross potential of 10,000 MW of wind power

• Gujarat is one of the two states in India with promising potential for offshore wind projects, according to FOWIND (Indo European Cooperation on Wind Energy Programme)

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Gujarat has the strongest Port Infrastructure in the country

• 1600 km coastline, 23% of India’swaterfront

• 48 major and minor ports

• 2 LNG terminals in the state. Combinedcapacity of 15 MMTPA

• 2 Floating, Storage and Regasificationunits (FSRU) being planned in Gujarat

• Mundra Port with a capacity of 180MMTPA is the largest private port ofIndia

108 131 151153

206231

259288

310 336

050

100150200250300350400

Traffic at Gujarat Ports has grown at a CAGR of over 13% in last 10 years

(MMTPA)

Huge investment opportunities: setting up of Maritime Cluster(s), development of Port Cities and Maritime University in

Gujarat

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Landmark Developments – Gujarat International Finance Tec-City (GIFT-City)

Multi-Services SEZ with India’s 1st

International Financial Services Centre (IFSC)

Firms can undertake offshore transaction in the field of Banking,

Insurance & Capital Markets

Offices can be set up at cost effective rate with locational advantage and

modern infrastructure

In last one year, IFSC transactions at GIFT City have crossed USD 1 billion

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Landmark Developments – Dholera Special Investment Region (DSIR)

Dholera SIR to be the biggest beneficiary of Delhi Mumbai Industrial Corridor (DMIC) and

Dedicated Freight Corridor (DFC)

Proposed Smart City &International Airport

DSIR Advantages

• Total area of 920 sq.km of which over 550 sq. km developable area

• The SIR is declared as National Investment Manufacturing Zone (NIMZ)

• Fully serviced plots• Smart & Sustainable Social infrastructure

Investment Opportunities

• Heavy Engineering

• Automobiles & Auto Ancillary

• Aerospace & Defence

• Aircrafts Maintenance Repair Overhaul (MRO)

• Electronics, Hi-tech Technologies

• General Manufacturing

• Agro & Food Processing 18

Landmark Developments – Petroleum, Chemical & Petrochemical Investment Region (PCPIR) at Dahej

A specifically delineated investment region of 453 sq. km.Offers opportunities for manufacturing of Chemicals, Petrochemicals, Plastics, Engineering Products

• Concentration of Petroleum, Chemical and Petrochemical estates

• Rich natural resources and feedstock

• Chemical port terminal and chemical storage facility

• LNG Terminal

• Liquid Fuel Jetty and Solid Cargo Jetty

• Effluent disposal pipelines, solid waste disposal sites

PCPIR Master Plan

ONGC Petro Additions Ltd (OPaL)–Anchor Tenant already in place

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Gujarat offers the right facilitation with all major clearances/approvals provided online

• 202 estates and 3 Special Investment Region (each with an area of over 100 sq. km) managed and operated by Gujarat Industrial Development Corporation (GIDC)

• Application and approval for Land allotment/lease deed/transfer, utilities connection, plan approval available online

Online approval information on www.gidc.gov.in

Total 52 investment related applications are integrated with Investor Facilitation Portal (IFP)

(www.ifp.gov.in) including 11 Departments

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State Government has a comprehensive system for timely land allotment and construction permits

• State Law permits private industries to purchase land in the open market up to 2500 acres

• State has set up a Facilitation Unit in every District Collectorate, in the form of e-SEWA Society, providing following services on user-pay basis:

• Private purchase of land in open market/Government land through single window clearance (63 AA Permission)

• Single Window Statutory clearance for construction (N.A Permission & Building Permission)

• Title verification services

• Facilitate Government Survey of Land

• Tree-cutting permissions

• Explosive and other licences

Land Records of any parcel of land are available online at https://anyror.gujarat.gov.in/All rules, regulations relation to land administration are available at

revenuedepartment.gujarat.gov.in 21

Labour reforms initiated by State Government

• Online Registration of Establishments

• Online Issue of Licenses and Permissions

• Online Services to Industry and Workers

• Self Certification Scheme for Industry

• Joint Inspection Once in Five Years Only

• Inspection Reports Online Within 48 Hours

• Audit and Assessment Scheme for Good Labour Standards

• Number of Records Maintained Consolidated to 2 Only

• Registration and Inspection Reports Open to General Public

Gujarat has Lowest Rate of Strikes, Lockouts and Industrial Disputes

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E-Governance initiative of Gujarat Pollution Control Board (GPCB)

• Hassle free, 24 X 7 anywhere e-access to businesses through an unique ID to perform GPCB related various activities like:

• Making online applications and its tracking

• Filing returns and statements prescribed under the acts/ rules and to obtain the online permissions

• Facilitate reuse / recycle of waste

• Online Issue of Licenses and Permissions

• Online NOC/CCA Application

• Online query redressal

• Online printing of bills/receipts/assessment

• Online filing of water cess returns

Industrial units can file online application 24x7 simply by logging on the site, can track its status through e-mail, SMS alerts and mobile app

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Vibrant Gujarat Global Summit 2017

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Vibrant Gujarat: The Journey So Far…

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Vibrant Gujarat 2015 : Outcomes

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Vibrant Gujarat Summit 2015 – Dignitaries

Mr. Narendra Modi, Prime Minister

Mr. Tshering Tobgay, Prime Minister of Bhutan

Mr. Nikola Gru`evski, Prime Minister of Republic of Macedonia

Mr. Yair Shamir, Minister of Agriculture, Government of Israel

Mr. Ban Ki Moon, Secretary General, United Nations

Mr. John Kerry, Secretary of State, USA

Mr. Yosuke Takagi, State Minister, METI, Japan

Mr. Jim Yong Kim, President, World Bank

Mr. Sam Walsh, CEO, Rio Tinto, Australia

Mr. Cyrus Mistry, Chairman, Tata Sons

Mr. Mukesh Ambani, Chairman, Reliance Industries Ltd.

Mr. Ajaypal Singh Banga, President, US India Business Council27

Vibrant Gujarat Global Summit – Value Proposition

• Theme for VG 2017: Connecting India to the World

• Platform for all states to participate

• Participation of GoI Departments & Regulators in B2G meetings, for the first time

• For the first time Nobel Prize Series Exhibition for 5 weeks, and Nobel Laureate

Symposium on 10th January 2017

• Mega MSME seminar aligned with Stand Up India

• Focus on ‘Make in Gujarat’ Series to promote Gujarat’s manufacturing strength aligned with

Make in India

• Facilitation Desks by GoG depts. for investor facilitation at Mahatma Mandir

• 10 Partner Countries – Australia, Canada, Denmark, France, Japan, The Netherlands,

Poland, UAE, UK, USA28

VG Global Summit 2017: Main summit programs

Duration (4 days) 10, 11,12 and 13 January 2017

Summit Events • Inauguration by Hon’ble Prime Minister• Nobel Laureates Symposium & Exhibition in the field of science,

technology, physics• Global CEO Roundtable• Theme Seminars

• GST: Game Changer for Indian Economy• Business Potential of International Financial Services Centre

in India• Innovation, Startups & Entrepreneurship• Ease of Doing Business – Regulators as Facilitators

• B2B and B2G meetings on each day• Country Seminars• Mega MSME Convention• Global Trade Show and Exhibition

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You are cordially invited as our esteemed guests to Vibrant Gujarat Global Summit 2017: 10, 11, 12 & 13 Jan 2017

For registration and further information, please visit

www.vibrantgujarat.com

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