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

Government of Gujarat Initiatives for Ease of Doing Business

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Best practices followed by the State

Availability of Land Information

Complete information of GIDC Land bank and Private Industrial Park land bank available on IFP: Availability, Link infrastructure, CETPs, Contact details of Developer

Online Screening Committee constituted for speedy approval of land allotment

Environmental Registration Enablers

e – Xtended Green Node (XGN): Most unique solution jointly developed by NIC and Gujarat Pollution Control Board (GPCB) for environmental protection related approvals

XGN replicated in Goa, Uttarakhand, Madhya Pradesh, Himachal Pradesh & Karnataka

Inspection Reform Enablers

Joint Site Inspection: all labour laws Approx. 160 Green Industries exempt from Inspection Same Inspector will not inspect same establishment twice consecutively

Obtaining Electricity Connection

Only 2 documents required for new LT and HT connection SMS facility, Jan Sewa Kendra and Helpline Number to resolve queries of

applicant/ customers

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

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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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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

Investment of more than USD 300 Million already made. Committed

investment of more than USD 1700 Million.

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

More than 3500 people already working with leading Financial Services and IT companies

Out of total planned development of 62 Mn. Sq. Ft. of Built Up Area (BUA), 15 Mn. Sq. Ft. of BUA already allotted for

development of Commercial, Residential and Social facilities.

GIFT City : Institutions Present

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Institutions in Domestic Area Financial Institutions in GIFT SEZ / IFSC

Capital Markets at GIFT IFSC

Landmark Developments – Dholera Industrial City

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• 72 km of roads (18m to 70m RoW)

• Utilities - Gas, ICT, Power, Potablewater, Sewage, Recycled water,Storm drainage, STP, CETP

• India’s largest Greenfield IndustrialSmart City with an area of 422 sq km

• Environment Clearance obtained forentire city from MoEF

• First “Platinum” rated green city byIGBC

• Construction work for roads, servicesand utilities costing INR 2700 cr is inprogress; completion by 2018

• SPV formed, capitalized with INR 6000crores

• Land disposal policy finalized; Landparcels ready for allotment

Projects under construction

Dholera Industrial City is ready for business

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• Large land parcels are available and in possession

• Well connected by Road and Rail with airports & seaports

• Dholera international Airport under planning

• 24X7 power & water for industries and domestic use

• 100% recycling and reuse of waste water

• City Integrated Operations Centre (CIOC) for efficient

and safe operations

Aviation & Defence

Heavy Engineering

Auto & Auto ancillaries

Target Industries for Dholera

Plot Sizes

General Manufacturing

Electrical and Electronics

Agro & Food processing

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

• Chemical port terminal and chemical storage facility

• LNG Terminal

• Liquid Fuel Jetty and Solid Cargo Jetty

• Effluent disposal pipelines, solid waste disposal sites

• Total Investment made and committed at DahejPCPIR: INR 1,69,640 Crore (~USD 26 Billion)

PCPIR Master Plan

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

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Occupants in PCPIR

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Commissioned and Under Implementation Units in PCPIR

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 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. PharmacyCollege) was established in Gujarat. The statehas over 160 pharmacy colleges

Presence across the value chain

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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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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

310 336 340

050

100150200250300350400

Traffic at Gujarat Ports has grown at a CAGR of over 12% in last 10 years

(MMTPA)

Huge investment opportunities: settingup of Maritime Cluster(s), developmentof Port Cities and Maritime University inGujarat

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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 Reports 18

Gujarat has ambitious plans for the Aerospace & Defence Sector

• Integrated Industrial Facilities with companiesmanufacturing precision engineering goods and MSMEs inengineering and electronics provide a conduciveecosystem

• Extensive number of operational shipbuilding yards anddry docks

• Availability of contiguous land parcels for testing range

• Land acquisition for defence production projects havebeen exempted from the process of social impactassessment

• A state-of-the-art indoor Ballistic Armored MaterialsTesting Range and Research Centre has been set-up atGujarat Forensic Sciences University

• Government of India to setup Regional National SecurityGuard (NSG) hub in Gujarat

Gujarat has received 20 licenses out of 121for defence equipment manufacturingbetween May 2014 to Nov 2015 – amongst thehighest in India

Dahod

Kutch

Amreli

Vadodara

Kheda

Bhavnagar Bharuch

State Government to come out with a comprehensive Aerospace & Defence Policy. Draft Policy put up on www.imd-gujarat.gov.in/Document/2016-3-19_32.pdf for feedback from industries 19

Locations where defence manufacturing facilities will be set up

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 Defence,

Biotechnology,Plastics

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

• 202 estates and 3 Special InvestmentRegion (each with an area of over 100sq. km) managed and operated byGujarat Industrial DevelopmentCorporation (GIDC)

• Application and approval for Landallotment/lease deed/transfer, utilitiesconnection, plan approval availableonline

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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Availability of land across State

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GIDC Land Bank

• Land bank information is available onIFP website

• Online Screening Committee constitutedfor speedy approval of land allotment

• Land allotment is provided within thetime limit of 30 days

• Development Plan & Town Planningmaps – ULBs

• Special Investment Region (SIR)

• Special Economic Zone (SEZ)

• Private Industrial Park – Land bank availability, Link infrastructure, CETPs and Contact details of Developer

Other Land bank information

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Pioneering Labour and Pollution Control reforms initiated by State Government

• Online Registration of Establishments, Issue of Licenses and Permissions; and 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 LabourStandards

• Only 2 Records to be maintained

• Registration and Inspection Reports Open to General Public

Gujarat has Lowest Rate of Strikes, Lockouts and Industrial Disputes Industrial units can track status of online application through e-mail, SMS alerts and mobile app

• GPCB provides 24 X 7 anywhere e-access to businesses through an unique ID for:

• Making and tracking online applications

• Filing returns and statements prescribed under the acts/ rules

• Facilitate reuse / recycle of waste

• Issue of Licenses and Permissions

• NOC/CCA Application

• Query redressal

• Printing of bills/receipts/assessment

• Filing of water cess returns

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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 of India

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 VGGS 2017: Connecting India to the World

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

Symposium on 10th January 2017

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

Make in India

• Mega MSME seminar aligned with Stand Up India

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

Poland, UAE, UK, USA

• Participation of GoI Departments & Regulators

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

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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

• Global Trade Show and Exhibition 29

Useful Websites

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Vibrant Gujarat Global Summit (VGGS) www.vibrantgujarat.com

Vibrant Gujarat Social Media Handles

www.facebook.com/vibrantgujarat www.twitter.com/vibrantgujarat www.linkedin.com/company/vibrant-

gujarat www.google.com/+vibrantgujarat www.youtube.com/vibrantgujarat

Industries and Mines Department (IMD) www.imd-gujarat.gov.in

Industries Commissionerate (IC) www.ic.gujarat.gov.in

Gujarat Industrial Development Corporation (GIDC)

www.gidc.gujarat.gov.in

Industrial Extension Bureau (iNDEXTb) www.indextb.com

Investor Facilitation Portal (IFP) www.ifpgujarat.gov.in

VG Global Summit 2017

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You are cordially invited as our esteemed guests toVibrant Gujarat Global Summit 2017: 10, 11, 12 & 13 Jan 2017For registration and further information, please visit

www.vibrantgujarat.com

Thank You

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