gujarat - ibef · bharuch infrastructure status gujarat september 2009 ... • all district...
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Investment climate of a state
Resources/Inputs
Incentives to industryPhysical and social
infrastructure
Regulatory framework
• Skilled and cost-effective labour
• Labour market flexibility
• Labour relations
• Availability of raw materials and natural
resources
• Tax incentives and exemptions
• Investment subsidies and other incentives
• Availability of finance at cost-effective terms
• Incentives for foreign direct investment
(FDI)
• Profitability of the industry
• Procedures for entry and exit of firms
• Industrial regulation, labour regulation,
other government regulations
• Certainty about rules and regulations
• Security, law and order situation
• Condition of physical infrastructure such as
power, water, roads, etc.
• Information infrastructure such as telecom,
IT, etc.
• Social infrastructure such as educational
and medical facilities
Investment climate of a state is determined by a mix of
factors
Gujarat September 2009
3
Gujarat September 2009
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
Overall state competitiveness
Gujarat‘s economy and socio-economic profile
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A snapshot of Gujarat
• On May 1, 1960, Gujarat was created out of the 17
northern districts of the former state of Bombay.
• Located on the western coast of India, it has the
longest coastline in the country at 1,600 km.
• The state has a population of approximately 50.7
million (5 per cent of India) and an area of 1,96,024
sq km (6 per cent of India).
• It is bounded by the Arabian Sea to the west and
south west, and by Pakistan in the north.
• The state is flanked by the states of Rajasthan and
Madhya Pradesh towards the north east and east,
and by Maharashtra and the Union Territories of
Daman, Diu and Nagar Haveli towards the south.
GujaratECONOMY AND SOCIO-ECONOMIC PROFILE
September 2009
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A snapshot of Gujarat
• Gandhinagar, the capital city of Gujarat, is located close to Ahmedabad, the commercial capital.
• It has diverse climatic conditions with mild and pleasant winters, and hot and dry summers and
heavy monsoon.
• The state currently has 26 districts, with the latest district, Tapi, being constituted in 2007, from
Surat.
ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009
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Socio-economic snapshot
Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Pages 3, 48
ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009
Demographic indicators
Population density (2001) 258 per sq. km.
Rural population (%) 62.64
Urban population (%) 37.36
Decadal growth rate (%) 22.66 (1991–2001)
Birth rate 23.5 (2006)
Death rate 7.3 (2006)
Natural growth rate 16.2 (2006)
Sex ratio 920 females per 1,000 males (2001)
Effective literacy rate 69.14% (2001)
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Tertiary sector highest contributor to Gujarat‘s economic basket
Economic indicators
Growth trends in Gross State Domestic
Product (GSDP)
• GSDP was US$ 61 billion (E) at current prices in
2007–08
• GSDP growth for 2006–07 was 15.81 per cent
• Gujarat has set the highest growth target of 11.2
per cent for the Eleventh Five Year Plan
Composition of GSDP as per economic activity
Source: ―Socio-Economic Review Gujarat State 2007–2008‖,
Directorate of Economics & Statistics, Pages 5,7
ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009
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Tertiary sector highest contributor to Gujarat‘s economic basket
Sectoral contribution to GSDP
• Tertiary sector — highest contributor to GSDP
• Manufacturing sector — a key driver of Gujarat‘s economy
ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009
From revenue deficit to revenue surplus (US$ mn)
Source: ―Socio-Economic Review Gujarat State 2007–2008‖,
Directorate of Economics & Statistics, Pages 5,7
9
Increase in per capita income (at current prices)
(1US$ = INR 45.24 for 2006-07 and 44.27 for 2005–06)
ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009
Tertiary sector highest contributor to Gujarat‘s economic basket
Per capita Income
• Per capita income of Gujarat in 2006–07 was US$ 829.6, higher than the national average of US$ 655.2
Source: ―Socio-Economic Review Gujarat State 2007–2008‖,
Directorate of Economics & Statistics, Pages 5,7
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Socio-economic profile of Gujarat
Employment distribution
• Manufacturing accounts for largest share of
employment across industries in Gujarat.
• Employment in public sector establishments was
at 1.75 million in June 2007.
• Employment in the private sector was at 1.8
million in June 2007.
• The public sector employed 18.66 per cent and
the private sector employed 10.21 per cent of
women in June 2007.
Employment distribution across sectors
Source: ―Socio-Economic Review Gujarat State 2007–2008‖,
Directorate of Economics & Statistics, Page 60
ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009
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Gujarat September 2009
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
Overall state competitiveness
Gujarat‘s economy and socio-economic profile
The focus of this presentation is to discuss…
12
The state has one of the strongest port infrastructures in India
• Gujarat has 42 ports along a 1,600 km coastline,
including one major port at Kandla and 41 minor
ports.
• The state has five direct berthing commercial
ports, seven direct berthing captive port terminals
and four lighterage cargo ports.
• It handled the largest (79.84 per cent) share of
cargo traffic in India‘s minor and intermediate
ports, and 11.5 per cent in India‘s major ports in
2008–09.
• The state has two LNG terminals that offer cost-
efficient transportation of natural gas, crude oil and
petroleum products from the Middle East and
Europe.
Source: ―Ports of Gujarat‖, sector profile 2008–2009, Gujarat
Maritime Board (GMB), Pages 10, 11
Major ports
Private sector ports
GMB ports
Maroli
HaziraMagdalla
Dahej
Dholera
BhavnagarMithivirdi
PipavavSimar
Porbandar
OkhaSikka
JamnagarNavlakhi
KandlaJakhau
Positra
Khambhat
Mahuva
Jafrabad
Mundra
SutrapadaVansi Borsi
INFRASTRUCTURE STATUSGujarat September 2009
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The state has one of the strongest port infrastructures in India
• It is the first state in India to take up port privatisation.
• The state plans to have modern mechanised cargo handling systems in all new ports.
• The state‘s port policy envisages the development of 10 greenfield sites.
Source: ―Ports of Gujarat‖, sector profile 2008–2009, Gujarat Maritime Board, Pages 10, 11
INFRASTRUCTURE STATUSGujarat September 2009
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Well developed physical infrastructure — rail, road and air
• The state has a road network of 74,111 km, including national highways (2,781 km), state highways
(18,738 km) and expressways (93 km).
• 38.2 per cent of total expressways and national
highways in the state are multi-lane; 87.9 percent
of total roads are asphalt-surfaced.
• There is 98.86 per cent rural connectivity through
all-weather roads, the highest in India.
Sources: Gujarat State Road Development Corporation,
Socio-Economic Review, 2007-08
INFRASTRUCTURE STATUSGujarat September 2009
National highways
State highways
Railways
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Well developed physical infrastructure — rail, road and air
To Delhi
To Mumbai
Existing Rail Lines
Rail Link
Ports
Airports
Transportation network across Gujarat
Sources: Compiled from industry
sources, EY research
INFRASTRUCTURE STATUSGujarat September 2009
• Pragatipath Yojana, a government initiative
introduced in 2005, envisages the development of
nine high-speed corridors and widening of
highways to connect tribal, coastal, industrial and
rural areas with mainstream areas.
• The state has 13 domestic airports (the highest in
the country) and one international airport at
Ahmedabad.
• It also has an extensive railway network of 5,188
km.
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Integrated gas grid a feather in Gujarat‘s cap
• The installed capacity of electricity in Gujarat has
increased from 385 MW in 1966 to 9,628 MW in
2008.
• Over 18,000 villages are supplied with 24-hour,
three-phase electricity under Jyotirgram Yojana.
• Transmission losses for 2007–08 were 3.85 percent,
which is amongst the lowest in the country.
• Gujarat is the only state in India with a 2,200 km
integrated gas grid that is operated on an open
access, common carrier principle.
Source: ―Power‖, sector profile 2008–2009, Government of Gujarat,
Page 6; ―Piped Natural Gas‖, GSPC Gas website,
http://www.gspcgas.com/, accessed on September 15, 2009
INFRASTRUCTURE STATUSGujarat September 2009
Integrated gas grid
Current
transmission
25 mmscmd* (including 10
mmscmd of regassified LNG)
Total length 2,200 km
Completed 1,420 km
Under construction 450 km
Planned expansion 330 km
Sources: ―Beyond State Boundaries‖, Government of Gujarat
2008–2009, page 72
* million metric standard cubic metres per day
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Integrated gas grid a feather in Gujarat‘s cap
Integrated gas grid for energy security
Commissioned
Under construction
Tendering
Existing LNG terminal
Proposed LNG terminal
Oil & gas reserves
Ankleshwar
Dahej
Hazira
Pipavav
Mundra Ahmedabad
Dholera
Mehsana
Kalol
PalejGandhar
Bharuch
INFRASTRUCTURE STATUSGujarat September 2009
• Gujarat State Petroleum Corporation‘s GSPC
Gas Company is currently supplying piped
natural gas (PNG) to nearly 59,709 domestic
households, 370 commercial establishments and
551 industrial customers.
• Gujarat State Petroleum Corporation holds over
42 oil and gas fields across India, in addition to
exploration blocks in Australia, Egypt and Yemen.
• GSPC is known for its discovery of the largest
gas reserve in India at the Krishna-Godavari
Basin.
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Adequate telecom and IT infrastructure
Key initiatives introduced as part of the state
government‘s e-governance drive include the
following:
• Gujarat State Wide Area Network (GSWAN),
world‘s second-largest IP-based WAN connecting
over 2,800 government offices
• Availability of the Secretariat Integrated
Communication Network (SICN) with over 7,500
voice connections
• Online redressal of citizen grievances through
State Wide Grievance Attention on public
grievances by application of Technology
(SWAGAT)
• Integrated Workflow and Document Management
System (IWDMS) streamlines documentation in
government offices
Gujarat State Wide Area Network (GSWAN)
Telecommunications snapshot (March 31, 2008)
Source: ―Annual Report 2007–2008, Telecom
Regulatory Authority of India, Page 60
Number of Direct Exchange Lines
(DELs) (2008)
2,276,756
Number of GSM cellular subscribers
(August 2008)
20,343,734
INFRASTRUCTURE STATUSGujarat September 2009
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Adequate telecom and IT infrastructure
• All district headquarters provided with back-up support of transportable V-SAT terminals.
• Availability of State Disaster Resource Network (SDRN), a database of disaster management related
inventory.
• The Bhaskaracharya Institute for Space Applications and Geoinformatics (BISAG) has satellite
communication facilities with dedicated bandwidth.
INFRASTRUCTURE STATUSGujarat September 2009
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Building infrastructure for water
• The development of a water grid was proposed to
overcome the uneven availability of water in the state.
• Until now, 1,874 km bulk pipelines and approximately
100,000 km of distribution pipelines have been laid
across the state.
• Out of 18,594 villages, the water grid has connected
almost 9,600 villages.
• Over 14,000 Pani Samitis (water committees) by the
end of 2008.
State-wide water grid
Sources: ―Beyond State Boundaries‖, Government of Gujarat
2008–2009, pages 68-71
INFRASTRUCTURE STATUSGujarat September 2009
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Building infrastructure for water
• Water conservation schemes:
• 118,000 check dams**
• 55,900 bori bandhs (dams made of sand bags)
• Interlinking of 21 rivers in central and north Gujarat through Sujalam Sufalam Yojana
• 18,000 deepened ponds
• The Gujarat Water Users‘ Participatory Irrigation Management Bill, 2007, authorises farmers to
constitute Water Users‘ Associations (WUA) for the management of canals handed over, after
rehabilitation by the government.
** Check dam — Small weir constructed across a rivulet having minimum discharge of 1 cusec after the monsoons
INFRASTRUCTURE STATUSGujarat September 2009
Surface water 38,100 mcm*
Ground water 12,000 mcm
Total 50,100 mcm
* million cubic metres
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Thrust on clean transport infrastructure
CNG initiatives
• Replacement of conventional fuels by
Compressed Natural Gas (CNG) in all buses
and auto rickshaws.
• 141 CNG stations already established.
• 1,181 CNG buses of Gujarat State Road
Transport Corporation (GSRTC), 3,750 CNG
private buses, 114,446 CNG auto rickshaws and
50,708 CNG cars are currently operational.
• In Ahmedabad, CNG auto rickshaws are
mandatory.
Ahmedabad BRTS map
Sources: ―Beyond State Boundaries‖, Government of Gujarat 2008–
2009, page 74, 87
INFRASTRUCTURE STATUSGujarat September 2009
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Thrust on clean transport infrastructure
Bus Rapid Transit System (BRTS)
• Implemented jointly by the state government,
Gujarat Infrastructure Development Board
(GIDB), Ahmedabad Municipal Corporation
(AMC) and Ahmedabad Urban Development
Authority (AUDA).
• Approved length — 88.5 km (Phase 1 — 58 km
+ Phase 2 — 30.5 km).
• Phase 1 to be operational by December 2009.
• Entire project to be completed by December
2010.
Simulation of BRTS Project
Sources: ―Beyond State Boundaries‖, Government of Gujarat 2008–
2009, page 74, 87
INFRASTRUCTURE STATUSGujarat September 2009
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Other initiatives in urban infrastructure
River-front development
• Development around Sabarmati and Tapi rivers
undertaken to revitalise city and improve existing
infrastructure.
• Envisages development of commercial, residential
and recreational facilities.
• Sabarmati River Front Development Corporation
honoured with Prime Minister‘s Award for
Excellence in Urban Planning and Design for
development along Sabarmati river.
Other reforms
• Municipal accounting
• Solid waste management
• Energy efficiency
Proposed night view along Sabarmati river
INFRASTRUCTURE STATUSGujarat September 2009
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The state has strong social infrastructure for health
Healthcare facilities
• The state currently has 13 medical colleges, 1,080
primary health centres (PHC), 7,274 sub centres, 273
community health centres (CHC) and 85 mobile
healthcare units.
No. of registered doctors (2006)
Source: Department of Health, Government of Gujarat
INFRASTRUCTURE STATUSGujarat September 2009
Maternal Mortality Rate (MMR)172 (Aug
2007)136 (2008)
Infant Mortality Rate (IMR) 53 (2006) 52 (2007)
No. of private specialists
enrolled 865 (until 2009)
No. of deliveries under
Chiranjeevi Scheme321,302 (until April 2009)
Lives saved under Chiranjeevi
Scheme (until April 2009)
452 mothers and 6,144
newborns
Source: ―Healthcare‖, sector profile 2008–2009, Government of Gujarat,
Page 13; ―Beyond State Boundaries‖, Government of Gujarat 2008–2009, page 5
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The state has strong social infrastructure for health
Healthcare facilities
It also has a mechanism for Public-private
partnership in healthcare delivery:
• Chiranjeevi Scheme introduced to reduce
maternal and infant mortality, involves
collaborations between government and
private sector specialists to facilitate safe
deliveries for economically weaker
sections.
• The Palanpur Hospital‘s management has
been transferred to Wockhardt.
Source: Department of Health, Government of Gujarat
No. of registered nurses (2006)
INFRASTRUCTURE STATUSGujarat September 2009
27
Special emphasis on the girl child in education
• The total number of primary schools in 2006–
07 was 39,064, with 221,049 teachers.
• Out of the total number of primary schools,
2,539 schools are only for girls.
• Kanya Kelavani is a state-wide girl child
education campaign to increase enrolment ratio
and decrease drop-out rates:
• Covered 28,346 primary schools
• Increase in net enrolment ratio from 75 per cent to 98.98 per cent
• Total number of students enrolled in 2008 was 7.7 million, of which 3.5 million were girls
• 33,410 girls have benefited from this fund
Reduction in year-wise drop-out rates (primary school)
Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Page 46,47
INFRASTRUCTURE STATUSGujarat September 2009
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Special emphasis on the girl child in education
• Vidya Laxmi Yojana has been implemented to
achieve 100 per cent enrolment and retention
of girls in primary schools:
• Around 699,000 girls have been given the
Vidya Laxmi Bond in the last five years
Number of girls who have benefitted from the Vidya
Laxmi Yojana (mn)
Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Page 46,47
INFRASTRUCTURE STATUSGujarat September 2009
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One of the leading states in India for higher education
• The number of schools imparting secondary and higher secondary education in 2006–07 was 7,967, with 76,054 teachers.
• The number of students enrolled in these schools was 2.6 million in 2006–07.
• The number of institutions imparting higher education is 903, with 0.4 million students and 82,63 teachers.
• Over 0.5 million students graduate every year across disciplines.
INFRASTRUCTURE STATUS
Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Page 46,47
Gujarat September 2009
30
One of the leading states in India for higher education
Existing internationally acclaimed institutions:
• Indian Institute of Management (IIM), Ahmedabad
• National Institute of Design (NID), Ahmedabad
• National Institute of Fashion Technology (NIFT), Gandhinagar
• Centre for Environment Planning and Technology (CEPT), Ahmedabad
• National Institute of Pharmaceutical Education and Research (NIPER)
• A campus of Indian Institute of Technology, Mumbai,
is located in Ahmedabad
INFRASTRUCTURE STATUS
Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Page 46,47
Gujarat September 2009
Number of technical institutes
31
• Sakshardeep is a litreacy campaign for adult
education, under which 1.27 million adults had
been educated until 2006.
• Society for Creating of Opportunity through
Proficiency in English (SCOPE) is an initiative of
the government to make Gujarat‘s youth
proficient in business English.
Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Page 46,47
INFRASTRUCTURE STATUSGujarat September 2009
One of the leading states in India for higher education
Seats offered by technical institutes
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Manufacturing infrastructure bolsters MSMEs
MSMEs*, product clusters and industrial
estates
• The state‘s manufacturing industry is supported
by 37, 312 MSMEs.
• Gujarat has 83 product clusters.
• The Cluster Development Scheme** has been
launched for furthering the growth of product
clusters.
• Successful clusters include ceramics cluster at
Morbi, brass parts cluster at Jamnagar, fish
processing cluster at Veraval and powerlooms
cluster at Ahmedabad.
*Micro, small and medium enterprises
Number of clusters as per industry type
Source: Industries Commissionerate, GoG
** Clusters are groups of industries manufacturing identical and complementary products having critical mass of 50 units, located within a radius of 10 km
INFRASTRUCTURE STATUSGujarat September 2009
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Manufacturing infrastructure bolsters MSMEs
MSMEs*, product clusters and industrial
estates
• Gujarat has 202 industrial estates established by
Gujarat Industrial Development Corporation
(GIDC) for specific sectors — chemicals,
electronics, gems, apparels and granite.
• Industrial estates are set up on non-agricultural
land after assessment of industrial viability.
*Micro, small and medium enterprisesNavsari
Ankleshwar
Morbi
PIPAVAV
Rajkot
Jamnagar
Valsad
VadodaraAnand
Ahmedabad
Gandhinagar
Mehsana
Surendranagar
BhavnagarAmreliDAHEJ
HAZIRA
KANDLA
Kachch
Okha
Kodinar
Sutrapada
MUNDRA
Surat
Soda ash and salt-based industries, cement and steel pipes
Agro Processing
Engineering and ceramics
Petroleum and brass parts
Soda ash and salt-based industries
Chemicals, Petrochemicals, Pharma, Textiles
Product clusters
Source: Industries Commissionerate, GoG
INFRASTRUCTURE STATUSGujarat September 2009
34
Industrial infrastructure for SEZs
Special Economic Zones (SEZs)
• Gujarat had 55 approved SEZs (45 sector-specific and 10 multi-product) as on September 2008.
• Gujarat‘s three operational SEZs are:
• Kandla SEZ
• SUR SEZ
• Surat Apparel Park
• It is the leading SEZ state with the highest geographical area (27,125 hectares) under SEZ development.
• It is the first state to formulate an SEZ policy, which includes flexible labour laws and exit options for investors.
Key sector-wise break up of SEZs
INFRASTRUCTURE STATUSGujarat September 2009
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A V B S Am G K J
Functional 2 1
Notified and
operational2 1 1 1 1 1
Notified 4 1 2 1 1 3 3
Formal 7 4 3 3 4 1
In-principle 2 1 1 4
Industrial infrastructure for SEZs
District-wise distribution of SEZs
A Ahmedabad
V Vadodara
B Bharuch
S Surat
Am Amreli
G Gandhinagar
K Kutch
J JamnagarSEZ Status
Approval type Number Area (hectares)
Functional 3 506
Notified & operational 7 9810
Notified 15 6114
Formal approval 22 7702
In-principle approval 8 2993
Source: ―Special Economic Zones (SEZs)‖, Sector profile 2008–2009, Government of Gujarat
INFRASTRUCTURE STATUSGujarat September 2009
36
Industrial infrastructure in Gujarat includes dedicated freight
corridor
Key investment regions — Delhi-Mumbai Industrial Corridor (DMIC)
• Gujarat‘s share of the Delhi-Mumbai dedicated freight corridor (DFC) of 1,500 km is 38 per cent (564 km).
• The two investment regions identified for Phase-1 development are:
• The Ahmedabad-Dholera investment region
• The Vadodara-Ankleshwar industrial area
• The area under DMIC influence in Gujarat includes:
• 62 per cent of total area (18 districts out of 26)
• 74 per cent of population (37 million)
Haryana
Rajasthan
Gujarat
Maharashtra
Madhya Pradesh
Uttar Pradesh
Uttaranchal
Arabian Sea
Dadri
J.N.Port
End Terminals
DFC Alignment
DMIC passing through Gujarat
Sources: Industries Commissionerate, GoG
INFRASTRUCTURE STATUSGujarat September 2009
37
Industrial infrastructure in Gujarat includes dedicated freight
corridor
Key investment regions — Delhi-Mumbai Industrial Corridor (DMIC)
• There is excellent connectivity to ports such as Mundra, Pipavav, Dholera, Dahej, Hazira and Maroli.
• Other key projects include the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)
at Dahej and the Special Investment Region (SIR) at Dholera.
• The Gujarat International Finance-Tec City (GIFT), a collaboration between GUDC* and IL&FS**, is
being developed as a central finance and business district.
*Gujarat Urban Development Company Ltd
** Infrastructure Leasing and Financial Services Co. Ltd
Sources: Industries Commissionerate, GoG
INFRASTRUCTURE STATUSGujarat September 2009
38
Gujarat September 2009
Infrastructure Status
State Policies and Incentives
Business Opportunities
Doing Business in Gujarat
Overall State Competitiveness
Gujarat ‗s Economy and Socio - Economic Profile
The focus of this presentation is to discuss…
39
The state has a proactive industrial policy
State industrial policy — key highlights
• The state government introduced the Gujarat Industrial Policy in 2003, with amendments in 2009.
• The policy proposes to address industry requirements on a long-term basis.
• The key highlights of the policy include the following:
• Promotion of ‗Brand Gujarat‘ in the global arena.
• Strengthening the investor facilitation mechanism.
• Facilitating access to concrete, speedy and authentic information for entrepreneurs.
• Encouraging innovative projects in the manufacturing sector.
STATE POLICIES AND INCENTIVESGujarat September 2009
40
The state has a proactive industrial policy
State industrial policy — key highlights
STATE POLICIES AND INCENTIVESGujarat September 2009
• Promotion of ‗Green Business‘ to address environment concerns.
• Development of special investment regions (SIRs) for attracting global business.
• Increasing opportunities for public-private partnership (PPP) projects, especially in infrastructure.
• Development of incubation centres to encourage innovation by the youth.
• Upgradation of industrial and urban infrastructure.
• Development of thrust industries.
• Promotion and development of SEZs and industrial parks.
• Cluster development for SMEs.
• Human resource development and creation of employment opportunities.
41
State agro and port policies and incentives
Agricultural policy — Key highlights
• The policy provides financial support and incentives for agro-industrial projects for the development and facilitation of infrastructure, marketing and research.
• There is a 6 per cent per annum back-ended interest subsidy for the first five years from commencement of operations.
• The policy provides support to private sector industries, apex cooperative industries and agriculture product marketing committees (APMCs) for setting up centres of excellence.
• Initiatives undertaken for the export of agri products include:
• Development of agri-export zones and air cargo complex
• 25 per cent air freight subsidy on agri exports
• Financial assistance (up to 50 per cent of cost) for R&D activities
• Kiosks at APMCs for connectivity with the related departments of agriculture, universities, industries and international markets
STATE POLICIES AND INCENTIVESGujarat September 2009
42
Port policy — Key highlights
• The port policy seeks to enhance Gujarat‘s share in the national export-import sector.
• It also seeks to decongest existing ports on the western coast through efficient services to support
domestic and international trade.
• Providing port facilities to promote export-oriented industries and port-based industries.
• Encouraging shipbuilding, ship repairing and manufacturing facilities for cranes, dredgers and floating
crafts.
• Promoting coastal shipping for passengers and cargo traffic between various locations within and
outside Gujarat.
• Supporting power plants by offering exclusive facilities for import of fuels.
• Encouraging private sector investment in minor and intermediate ports as well as new port locations.
State agro and port policies and incentives
STATE POLICIES AND INCENTIVESGujarat September 2009
43
State power and IT policies and incentives
Power generation policy — key highlights
• Carry out planning and building up adequate capacity
in generation, transmission and distribution.
• Achieve optimum utilisation of existing equipment.
• Rationalise tariff structures.
• Improve quality of services to achieve cost
effectiveness.
• Strive for energy conservation.
• Encourage power generation by utilising non-
conventional energy sources.
• De-monopolise distribution of power and invite
involvement of private partners.
IT policy — key highlights
• Special incentives for mega-IT projects
creating employment for more than 1,000
persons in case of an IT unit and 1,500
persons in case of an ITeS unit.
• Financial assistance at the rate of 50 per
cent of fixed capital investment in land,
buildings and infrastructure facilities to IT
park developers up to a maximum of
US$ 509 billion.
• Stamp duty exemption on purchase of land
for IT park developers.
• State shall facilitate a grant of SEZ status to
IT industry/IT parks subject to the
provision of the SEZ Act/rules.
STATE POLICIES AND INCENTIVESGujarat September 2009
44
State mineral and road policies and incentives
Mineral policy — key highlights
• Invite participation from the private sector for
mining and exploration.
• Prioritise exploration of lignite to meet the state‘s
power demand and the fuel requirement of
industries.
• Creation of a databank by compiling geological and
technical details of state and Central government
agencies in geological survey and mineral
exploration.
• Implement environment assessment norms that
would be constantly monitored in the case of
leases of major minerals.
• Promote use of modern technology in mining.
Road policy — key highlights
• First state in India to have a law governing build-own-transfer (BOT) transactions.
• Provide connectivity to all villages by building all-weather roads to improve quality of life in rural areas.
• Develop an efficient road system to ensure smooth and uninterrupted flow of goods and passenger traffic.
• Constantly upgrade technology by deploying superior and quicker construction and maintenance methods.
• Induct scientific principles of resource allocation for maintenance and new construction programmes.
• Set high standards for road safety and the travel comfort of passengers.
STATE POLICIES AND INCENTIVESGujarat September 2009
45
State solar and tourism policies and incentives
Solar Power policy - key highlights
• Promoting generation of green and clean power.
• The policy will remain in operation from 2009 to
2014.
• Solar power generators (SPGs) installed during
this period are eligible for incentives for 20 years.
• Electricity generated from SPGs and used for
self-consumption or sale to third party, or sale to
licensees, shall be exempted from payment of
electricity duty.
• Exemption from demand cut to the extent of 50
per cent of the installed capacity.
Tourism policy - key highlights
• Identifying and developing tourist destinations.
• Creating adequate facilities for budget tourists.
• Strengthening present tourism-related infrastructure with opening of new centres.
• Promoting accommodation projects, food-oriented projects, entertainment projects, service oriented projects, etc.
• Promoting tourism in the areas of religious and archaeology, heritage, wild life, coastal and beach, traditional art and craft, and adventure tourism.
STATE POLICIES AND INCENTIVESGujarat September 2009
46
Gujarat September 2009
Infrastructure Status
State Policies and Incentives
Business Opportunities
Doing Business in Gujarat
Overall State Competitiveness
Gujarat ‗s Economy and Socio - Economic Profile
The focus of this presentation is to discuss…
47
Attractive sectors — agro and food processing
Agro and food processing
• Agro sector, including animal husbandry,
contributed 14.8 per cent (at current prices) to
Gujarat‘s GSDP in 2006–07.
• Gujarat has a significant share in the national
production of principal crops such as:
• Highest production of cotton — 11.22
million bales in 2007–08
• Second-highest production of onion — 2.23
million tonnes in 2006–07
• Second-highest production of groundnut —
1.44 million tonnes in 2006–07
Wheat
Cotton
Paddy
Pulses
Grains
Tobacco
Major
ports
Banana
Onion
Major crops of Gujarat
Sources: ―Area, Production & Productivity of Cotton‖, Cotton
Corporation of India website, http://www.cotcorp.gov.in/, accessed
on September 15, 2009
BUSINESS OPPORTUNITIESGujarat September 2009
48
Attractive sectors — agro and food processing
Agro and food processing
• In 2007, the state‘s marketing network consisted of:
• 209 market committees
• 198 main yards
• 203 sub-market yards
Yield of principal crops (kg./hectare)
Sources: ―Area, Production & Productivity of Cotton‖, Cotton
Corporation of India website, http://www.cotcorp.gov.in/, accessed
on September 15, 2009
BUSINESS OPPORTUNITIESGujarat September 2009
49
Attractive sectors — dairy
Dairy sector
• Gujarat‘s dairy sector consists of:
• 13 district milk producers‘ unions
• Network of 12,991 milk cooperative
societies having 2.5 million members
• Total milk production — 7.9 million tonnes
• The National Dairy Development Board in
Anand is involved in promoting, financing and
supporting milk distribution organisations
across India.
ANAND
AHMEDABAD
GANDHINAGAR
Key districts in the dairy sector
Sources: ―Estimates of milk production‖, National Dairy
Development Board website, http://www.nddb.org/, accessed on
September 15, 2009
BUSINESS OPPORTUNITIESGujarat September 2009
50
Attractive sectors — dairy
Dairy sector
• Gujarat Cooperative Milk Marketing
Federation (GCMMF), a cooperative dairy
giant, sells Amul and Sagar brands of dairy
products through 500,000 unorganised
retailers and 3,000 distributors.
• GCMMF clocked a turnover of US$ 1.05
billion during fiscal 2006–07 to become the
first billion-dollar cooperative in India.
Key players in Gujarat
Sources: ―Estimates of milk production‖, National Dairy
Development Board website, http://www.nddb.org/, accessed on
September 15, 2009
BUSINESS OPPORTUNITIESGujarat September 2009
51
Attractive sectors — chemicals and petrochemicals
Chemicals and petrochemicals
• Gujarat contributed about 51 per cent to the
national production of chemicals in 2006–07.
• It is the highest contributor to the total national
production of petrochemical products.
• Gujarat‘s contribution in the national production
of the following is:
• Soda ash — 100 per cent
• Salt — 85 per cent
• Polymers — 56 per cent
• Ethylene — 50 per cent
Source: ―Chemicals & Petrochemicals‖, sector profile 2008–2009, Government of Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
State-wise share in production of selected major chemicals
(2006–07)
*Other states include Andhra Pradesh, Assam, Chhattisgarh, Dadar & Nagar
Haveli, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Orissa
, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and Uttaranchal
52
Attractive sectors — chemicals and petrochemicals
Chemicals and petrochemicals
• In 2006, the state had 3,720 factories
manufacturing chemical products and employing
more than 0.16 million people.
• Major companies present: Reliance Industries,
Nirma, Lanxess ABS Ltd, Gujarat Alkalies and
Chemicals Ltd (GACL), Gujarat State Fertilizer
Company (GSFC), etc.
• Proposed development of a petroleum, chemicals
and petrochemicals integrated region (PCPIR) at
Dahej.
Source: ―Chemicals & Petrochemicals‖, sector profile 2008–2009,
Government of Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
State-wise production of petrochemicals (2006–07)
*Other states include Andhra Pradesh, Assam, Chhattisgarh,
Dadar & Nagar Haveli, Haryana, Himachal Pradesh, Karnataka,
Kerala, Madhya Pradesh, Orissa , Punjab, Rajasthan, Tamil Nadu,
Uttar Pradesh and Uttaranchal
53
Attractive sectors — textiles and apparels
Textiles and apparels
• In 2008–09, Gujarat was the highest exporter of cotton in India at 60 per cent.
• It was also the highest contributor of man-made fibre (31 per cent) and man-made filament yarn (38 per cent) in the country.
• The state contributed 12 per cent to national textile exports in that year.
• Over 40 per cent of the country‘s art-silk fabric is produced in Surat.
• Over 30 per cent of fabric manufactured by the organised sector is from Gujarat.
• Gujarat is the largest producer of denim in India (65 to 70 per cent) and the third-largest in the world.
• It has the highest number of state-owned looms for cotton and man-made fibre (6,888 as on March 31, 2006); second-highest number of privately-owned looms (11,963 as on March 31, 2006).
• Operations across the entire value chain.
Source: ―Textiles & Apparel‖, sector profile 2008–2009, Government of Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
54
Attractive sectors — textiles and apparels
Snapshot of textile-specific special economic zones (SEZs) and
industrial parks in Gujarat
Surat
Gandhinagar
Mehsana
Valsad
Anjar
Mundra
Raymond
VadodaraJamnagar
Bharuch
Navsari
Ahmedabad
Textile and apparel parks
Textile and apparel SEZs
Support R&D institutes and
centres of excellence
Legend
BUSINESS OPPORTUNITIESGujarat September 2009
55
Attractive sectors — engineering and auto … (1/4)
Engineering and auto
• The states‘ engineering and auto sector contributes 8 per cent to India‘s total industrial production and over 9 per cent to the national engineering output.
• The state‘s engineering and auto sector has an average annual growth rate of 15 per cent.
• The sector comprises more than 600 medium and large sector units, and over 75,000 small-scale units.
• The state has 30 engineering product clusters.
BUSINESS OPPORTUNITIESGujarat September 2009
Share of Gujarat in national engineering sector output
56
Attractive sectors — engineering and auto … (2/4)
Factory (nos.) 29.03
Employment 23.58
Fixed capital investment 7.15
Value of output 10.1
Value added 12.72
Share (%) of engineering sector in Gujarat‘s industry
Source: ―Engineering & Auto‖, sector profile 2008–2009,
Government of Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
• Small-scale industry is a significant contributor to the national production of brass parts, foundry, forging and machine tools, oil engines and electric motors, submersible pumps and industrial valves and bearings.
• The brass parts cluster at Jamnagar has over 5,000 small units and meets the entire requirement for brass parts in India.
• The Kutch region in Gujarat is the third-largest steel hub in the world.
• General Motors has set up its automotive manufacturing facilities in Gujarat, providing a boost to the auto-ancillary industry.
57
Attractive sectors — engineering and auto … (3/4)
Key engineering clusters
Foundry and forgings
Steel re-rolled products
Brass parts
Fabricated metal products
Steel and aluminium furniture
Electric motors
Power driven pumps
Textile machinery parts
Chemical machinery parts
Food processing machinery
Machine tools
Diesel engine and parts
Ball and roller bearings
Automobile and auto parts
Steel pipes and tubes
BUSINESS OPPORTUNITIESGujarat September 2009
58
Attractive sectors — engineering and auto … (4/4)
Engineering and auto — key strengths
Largest producer of sponge iron Essar Steel
Largest copper rod manufacturing facility Hindalco
Largest manufacturer of material handling
equipment
Elecon
Engineering
Largest producer of earth moving
equipmentGujarat Apollo
Largest power transmission capacity
plant
Kalpataru Power
Transmissions
Largest manufacturer of glass shells for
TV tubes
Videocon
International
Leading players in Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
59
Attractive sectors — gems and jewellery
Gems and jewellery
• Gujarat accounts for 72 per cent of the world‘s share of processed diamonds and 80 per cent of total diamonds processed in India.
• Contributes 90 per cent of total diamonds processed in India in 10,000 units in Surat.
• Eight out of 10 diamonds in the world are polished in Surat.
• The state has the highest labour productivity in the jewellery sector in India.
Mining Processing Fabrication Consumption
Diamond
Gold
Platinum
Silver
and
others
Established presence Emerging centre/market
Gujarat‘s presence in the gems and jewellery value chain
Not applicable in Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
60
Attractive sectors — gems and jewellery
Gems and jewellery
• It is internationally renowned for the production of unique hand-made silver ornaments (85 per cent of total silver jewellery production of India).
• Renowned institutions such as the Indian Diamond Institute, Gujarat Hira Bourse, and the Gems and Jewellery Export Promotion Council provide skilled manpower for the industry.
Leading players in Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
61
Attractive sectors — oil and gas
Oil and gas
• Gujarat ranks first in the production of crude oil (onshore —55.10 per cent) and natural gas (onshore — 32.3 per cent) in India.
• The state has the highest number of oil and gas fields, both onshore and offshore, in India (31.3 per cent).
• Nearly 36.6 per cent of India‘s installed refining capacity is in the state of Gujarat, which is the highest in India.
• Proximity to Middle East gas sources and an attractive northern market makes Gujarat a potential gas supply hub.
Location Activity
Jamnagar RIL refinery — third-largest in the
world, Essar Refinery
Dahej Petronet LNG‘s re-gasification
terminal
Hazira Shell and Total‘s LNG terminal
Vadodara IOC Refinery
Gandhar ONGC‘s Gas Processing Complex
BUSINESS OPPORTUNITIESGujarat September 2009
62
Attractive sectors — oil and gas
Oil and gas
• Oil and gas reserves are located at Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambusar, Palej, Kalol and isolated gas fields around Ahmedabad.
• Gujarat has a 2,200 km state-wide integrated gas grid.
• The state has two LNG terminals at Hazira and Dahej, and two more terminals are proposed to be set up at Pipavav and Mundra.
Leading players in Gujarat
Source: ―Oil & Gas‖, sector profile 2008–2009,
Government of Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
63
Attractive sectors — pharma and biotech
Pharmaceuticals and biotechnology
• Gujarat accounted for 45 per cent of the national pharmaceutical production in 2006–07.
• It is the first state in India to manufacture active pharmaceutical ingredients (APIs) and finished dosage forms.
• The state accounts for 90 per cent of intravenous sets manufactured in the country.
• It is home to more than 902 allopathic manufacturing units and 2,122 contract manufacturing units.
• Gujarat accounted for 22 per cent of India‘s pharmaceutical exports in 2006–07.
• It is home to the largest number of clinical research organisations in India and over 100 companies with WHO-compliant manufacturing units.
• Gujarat has a considerable presence in homoeopathic medicine with 7,500 practitioners, 216 government dispensaries and 15 colleges.
BUSINESS OPPORTUNITIESGujarat September 2009
64
Attractive sectors — pharma and biotech
Key players across the value chain
NCEs
Active pharmaceutical ingredients
Technology intensive drugs (cytotoxics, vaccines)
Manufacturing and research services
Commodity generics
Manufacturing organisation
Academic institution
R&D organisation
Bharuch and
Vapi/Valsad
cluster
Surat
Baroda
cluster
Gandhinagar
AhmedabadSurendranagar
Junagadh
Rajkot
Ahmedabad
cluster
Ankleshwar
cluster
NDDS products
BUSINESS OPPORTUNITIESGujarat September 2009
65
Gujarat offers business opportunities in the ports sector
Port-led development
• The state has a vast hinterland comprising key northern states.
• It also has a large external trade potential given its vast coastline.
• In 2007–08, minor ports of Gujarat handled 20 per cent of the total cargo handled by Indian ports.
• The total port capacity of Gujarat grew at 46.6 per cent, from 135 MMT* in 2001 to 198 MMT in 2007–08.
Source: ―Ports of Gujarat‖, sector profile 2008–2009, Government
of Gujarat
Gujarat: Strategic Location
Main ports of Gujarat
Mundra Navlakhi
Jamnagar
SikkaOkha
Porbandar
Pipavav
Gujarat
Dahej
HaziraMagdalla
Kandla
* MMT = million metric tonnes
BUSINESS OPPORTUNITIESGujarat September 2009
66
Gujarat offers business opportunities in the ports sector
Port-led development
• Many upcoming ports being developed as captive ports for catering to specific companies.
• The state is undertaking fast-track clearance and establishment of ports through private participation.
• Increase in connectivity to non-major ports owing to the development of the Delhi-Mumbai Dedicated Freight Corridor.
• More than 4,800 ships and 1,000 sailing vessels visit the ports of Gujarat every year.
Source: ―Ports of Gujarat‖, sector profile 2008–2009, Government of Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
67
Large-scale infrastructure building for shipbuilding industry
Shipbuilding
• There are several shipyards present in Gujarat —ABG Shipyard, Alcock Ashdown, Vipul Shipyard, etc.
• Infrastructure available for the development of the shipbuilding industry includes:
• Availability of raw materials — ship building plates and engines
• Stillness of water and deep draft
• Proximity to ancillary industries
• Sufficient anchorage space
Sources: Gujarat Maritime Board data and
industry sources
Marine ship building parks (probable stretches)
Ship recycling
Bunkering facility
Ship building ⋐
⋐Mundra
⋐⋐
⋐⋐
Jafrabad
Pipavav
Dahej
Bhavnagar
Okha
Shipping Industry: Opportunities
BUSINESS OPPORTUNITIESGujarat September 2009
68
Large-scale infrastructure building for shipbuilding industry
Shipbuilding
• New shipyards are being established in Pipavav and Hazira.
• New projects will be accommodated in a cluster of shipyards called Marine Shipbuilding Parks that will have common infrastructure and all ancillary facilities.
• A mega marine shipyard is proposed to be built at Dahej and at the Gulf of Kutch.
BUSINESS OPPORTUNITIESGujarat September 2009
69
A rich heritage offers opportunities in tourism
Tourism
• The state has a rich architectural and cultural heritage owing to the presence of Indus Valley civilisation sites such as Lothal, Harappa, etc.
• Several pilgrimage and historical places, wildlife sanctuaries, and beach and hill resorts are present.
• 2006 was celebrated as Tourism Year in Gujarat to promote it as a key tourist destination of India.
• Some of the initiatives undertaken by the government to promote tourism include the following:
BUSINESS OPPORTUNITIESGujarat September 2009
Purpose of tourist flow (2006–07)
• Development plan for six tourist destinations by the Pilgrimage Development Board of Gujarat
• Constitution of the Tourism Promotion Council
• Reduction in entertainment tax from 50 to 25 per cent from 2006 onwards
70
A rich heritage offers opportunities in tourism
Tourism
• Increase in tourism budget from US$ 21 million during 2008–09 to US$ 35 million during 2009–10
• Policies on medical tourism, eco tourism and heritage tourism
• Introduction of courses in tourism and hospitality management
• Heritage conservation at Adalaj, Vadnagar and Champaner
BUSINESS OPPORTUNITIESGujarat September 2009
Gross tourist flow (2006–07)
Source: www.customsgujarat.nic.in
Nu
mb
er
of
To
uri
sts
(millio
ns)
71
The state has a varied export profile
• Gujarat contributes 19.2 per cent to India‘s total exports of merchandised goods and services.
• During 2006–07, exports and imports were recorded at US$ 126,362 million and US$ 185,749 million, respectively.
• Exports include items from sectors such as textiles, petroleum, chemicals, pharmaceuticals, engineering, and gems and jewellery.
• Exports from Kandla port amounted to 39.9 lakh tonnes in 2006–07.
• Export items from intermediate and minor ports include naphtha, petrol, clinker, cement, oil cakes, bauxite, para-xylene, salt, soda ash, food grain, cement clinker, ethylene, etc.
Increase in exports from Gujarat (US$ bn)
Source: Industries Commissionerate, GoG
Sector-wise exports (US$ bn)
Source: Industries Commissionerate, GoG
BUSINESS OPPORTUNITIESGujarat September 2009
72
Gujarat in the forefront in terms of attracting investments
• The Government of India ranks Gujarat first amongst all states in the country in terms of the total value of Industrial Entrepreneurs Memorandum (IEMs) — 1,424 —implemented in the last 17 years between 1991 and 2008.
• As per the Reserve Bank of India‘s (RBI) 2008 report, Gujarat continues to hold the first rank with the proposed investment of Rs 62, 442 crore from 100 projects, accounting for 22 per cent of total investment intentions.
VGGIS Investments
Vibrant Gujarat 2009: Key Investments
Sector MoUsInvestment(US$ bn)
Manufacturing 566 50.84
Infrastructure 194 105.51
Investment regions 101 42.61
Urban development 261 21.97
Social services 145 6.53
Tourism 97 9
Financial services + environment
47 15.67
MSME 7252 1.48
Source: ―Investments‖, Vibrant Gujarat website,
www.vibrantgujarat.com, accessed on September 15, 2009
BUSINESS OPPORTUNITIESGujarat September 2009
73
Gujarat in the forefront in terms of attracting investments
• With a share of 12.4 per cent ( US$ 4,045.25 million), Gujarat ranks second in the country in terms of FDI inflow, the first being Maharashtra.
• Vibrant Gujarat Global Investors‘ Summit (VGGIS) is a biennial networking event organised with the aim of showcasing Gujarat‘s strengths at a global forum.
Source: ―Investments‖, Vibrant Gujarat website,
www.vibrantgujarat.com, accessed on September 15, 2009
BUSINESS OPPORTUNITIESGujarat September 2009
74
Key players doing business in Gujarat … (1/9)
Company Business description
Reliance Industries Ltd
• India‘s largest and only private sector company to feature in the Fortune Global 500 list of ‗World‘s
Largest Corporations‘
• Annual revenues of over US$ 34 billion (as of March 31, 2008)
• Three manufacturing facilities in Gujarat at Naroda, Jamnagar and Hazira
• Largest grassroot refinery in the world at Jamnagar
• Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and
petrochemicals
Adani Group
• Established in 1988
• Largest trading house in India — leading trader in coal, wheat, castor oil, petroleum, business
process outsourcing (BPO), power trading, iron-ore and pulses
• Involved in development of Mundra port — second port to be privatised in Gujarat
• Developed natural gas distribution network
• Established India‘s largest edible oil refinery in the state
BUSINESS OPPORTUNITIESGujarat September 2009
75
Key players doing business in Gujarat … (2/9)
Company Business description
Essar Group
• Diversified business group with enterprise value over US$ 14 billion in 2008–09
• Business portfolio includes steel, energy, power, communication, ports, shipping and logistics, and
construction
• Operations in Mumbai, Gujarat (Ahmedabad, Hazira, Vadinar), Vishakhapatnam
• Has operations in over 20 countries across five continents
• Essar Group has the world's largest gas-based sponge iron plant
• India‘s largest exporter of flat steel products with a capacity of 14 MTPA (million tonnes per annum) —
steel plants in Gujarat, Andhra Pradesh and Chattisgarh and one proposed in Orissa
• Essar Steel is the largest steel producer in western India, with a capacity of 10 MTPA at Hazira, Gujarat
Aditya Birla (AB) Group• A US$ 29.2 billion corporation, operating in 25 countries and focussing on key sectors such as
aluminium, copper, cement, carbon black, textiles, fertilisers, chemicals, mining, software, BPO, financial
services, telecom and retail
• Hindalco, a Fortune 500 company of the AB Group, is one of the world‘s largest aluminium rolling
companies
• Fourth-largest producer of insulators in the world
• World leader in viscose staple fibre
• 10 manufacturing facilities located across Gujarat
BUSINESS OPPORTUNITIESGujarat September 2009
76
Key players doing business in Gujarat … (3/9)
Company Business description
ABG Shipyard
• Key business activities include ship building and ship repairing
• India‘s largest private sector shipyard (Magdalla-Surat), proposed shipyard at Dahej
• Constructed and delivered 104 specialised vessels — interceptor boats, self-loading and discharging
bulk cement carriers, split barges, newsprint carriers and offshore supply vessels
• First Indian company to export vessels to Norway
• First to produce diesel electric dynamic ships and pollution control vessels
• Received ‗Highest Exporter‘ awards from the Engineering Export Promotion Council (EEPC) since
2005
Torrent Group• US$ 714 million diversified conglomerate with a strong presence in power and pharmaceuticals
• Group companies include Torrent Pharmaceuticals Ltd, Torrent Power Ltd and Torrent Cable Ltd
Torrent Power distributes over seven billion units of power annually to Ahmedabad, Gandhinagar
and Surat
• Torrent Pharma has a manufacturing plant at Indrad (Gujarat), which manufactures formulations and
bulk drugs
BUSINESS OPPORTUNITIESGujarat September 2009
77
Key players doing business in Gujarat … (4/9)
Company Business description
Zydus Cadila
• India‘s leading pharma companies with sales of US$ 629 million in 2008–09
• Product line includes formulations, APIs, diagnostics, health and diet foods, skin care and animal
healthcare products
• Exports formulations and APIs to over 43 countries
• Focus areas for exports include cardiovascular, gastrointestinal and pain management
• Production units at Ahmedabad, Vadodara and Ankleshwar for manufacturing tablets, injectables,
capsules, liquids and APIs
Quintiles India • Leading global clinical research organisation (CRO), first global CRO to be established in India
• Only CRO in India to be identified as commercial R&D company by Department of Scientific and
Industrial Research
• Conducted over 175 clinical studies involving over 1,300 sites and 35,000 patients
BUSINESS OPPORTUNITIESGujarat September 2009
78
Key players doing business in Gujarat … (5/9)
Company Business description
Nirma • Over 350,400 distributors, over 1 million retailers and 300 million consumers
• Product line includes cosmetics, soaps, detergents and salt
• Largest detergent manufacturer in India
Welspun
• Presence across 50 countries
• Business activities include home textiles, saw pipes and steel, specialty texturised polyester yarn,
bathrobes, retail
• Welspun-Rohren — among the largest saw pipe manufacturers in Asia
• In 2009, Welspun India Ltd demerged into two companies–Welspun Global Brands Ltd (marketing,
sales, distribution) and Welspun Investments Ltd
BUSINESS OPPORTUNITIESGujarat September 2009
79
Key players doing business in Gujarat … (6/9)
Company Business description
Amul • Anand Milk Union Limited (AMUL) was established in 1956
• Market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated
fats and long-life milk
• Daily average collection of 8.4 million litres of milk from 13,328 village societies
Arvind Mills • One of the top three producers of denim in the world and largest producer in Asia
• Product line includes production of fabrics (denims, shirtings, khakis and knitwear) and garments
• Asia‘s first fabric manufacturing unit to receive an ISO 14001 certification
Ashima Group • One of India‘s leading 100 per cent cotton fabric manufacturers
• Over two-thirds of its production of 60 million metres of woven and 2,800 tonnes of circular knitted
cotton fabric is exported to over 45 countries
• Products include denims, shirtings, knitted fabrics and garments
• First textile company to get certified for ‗Integrated Quality and Environmental Management System‘
ISO 9001:2000 and ISO 14001:2004
BUSINESS OPPORTUNITIESGujarat September 2009
80
Key players doing business in Gujarat … (7/9)
Company Business description
Rasna• Holds 93 per cent market share in Indian soft drink concentrate market
• 82 per cent of in-house consumption of soft drink market
• Wide range of products in processed foods category
Bombardier Transportation India
• Presence in India since 35 years, headquartered in Canada
• Business activities include rail transportation equipment, systems and services, regional and business
aircraft; leading supplier of motor vehicles worldwide
• Among the first private companies to build rail vehicles in India
• Production facility at Vadodara
Matsushita • Largest Japanese electronics producer
• Products include audiovisual and information/communication equipment, home appliances
• Among the first companies to establish a business unit in Gujarat in 1972 through a joint venture
with Indian company Lakhanpal
• Manufacturing unit at Vadodara where it manufactures dry cell batteries
BUSINESS OPPORTUNITIESGujarat September 2009
81
Key players doing business in Gujarat … (8/9)
Company Business description
McCain Foods • Privately-owned, multinational leader in the frozen food industry with a revenue of US$ 6 billion in
2004
• World's largest producer of french fries and potato specialties — food products include appetizers,
pizzas, vegetables, desserts and other frozen foods
• Over 55 production facilities spread across six continents, supported by over 20,000 employees
• Aims to promote contract farming and buy potatoes from over 100 farmers spread over Anand,
Borsad, Palanpur and Deesa in Gujarat
• 2,000 acres of drip irrigation, introduced by McCain, present in Gujarat for potato farming
• Manufacturing facility at Mehsana
Alstom
• The company's activities in India include power generation, power service and rail transport
• Headquartered in France and with a presence in 70 countries, employing 80,000 people worldwide
• Alstom Projects India Ltd is headquartered in New Delhi and has facilities in Durgapur (utility boilers
manufacturing facility), Coimbatore (transport manufacturing facility), Bangalore (transport sector
software development centre), Kolkata (power service and environmental control system), Shahabad
(boiler and foundry products manufacturing facility) and Vadodara (hydro business manufacturing
facility)
• Contract with Gujarat State Electricity Corporation Ltd (GSECL) for construction of the first Alstom
GT26-based combined cycle power plant in India, as an extension of the existing power plant at Utran
(Surat)
BUSINESS OPPORTUNITIESGujarat September 2009
82
Key players doing business in Gujarat … (9/9)Company Business description
Shell • Among the global leaders in oil, gas and petrochemicals sector, with interests in biofuels, wind, solar
power and hydrogen
• Operates in over 100 countries, employing over 102,000 people worldwide
• Largest and most diversified international investor in India‘s energy sector
• Only global major to obtain a fuel retail license in India
• The Hazira LNG Terminal and Port project is Shell‘s largest venture in India
General Motors (GM)• Founded in 1908, GM is the world‘s largest auto maker
• Global industry sales leader for 78 years, GM employs 324,000 people around the world
• Headquartered in Detroit (USA), GM manufactures cars and trucks in 32 countries and has sales in
200 countries
• General Motors India, incorporated in 1994, became a fully-owned subsidiary of GM in 1999
• 45,000 sq mt plant at Halol (Panchmahal), Gujarat, produces Opel Corsa, Corsa Sail, Chevrolet Optra
and Chevrolet Tavera
Linde Engineering• Leading industrial gas and engineering company with over 53,000 employees working in 70 countries
• Constituent companies are Linde Gas and Linde Engineering
• Linde designs and builds turnkey process plants for industrial users and applications; Linde Engineering
has operations in Vadodara (Gujarat)
BUSINESS OPPORTUNITIESGujarat September 2009
83
Gujarat September 2009
Infrastructure Status
State Policies and Incentives
Business Opportunities
Doing Business in Gujarat
Overall State Competitiveness
Gujarat ‗s Economy and Socio - Economic Profile
The focus of this presentation is to discuss…
84
A roadmap for doing business in Gujarat
Registration of Business Organization
Approvals/Registrations/Filling with competent authority for set
Land
Apply to the
District
Collectorate for
Government
Land
Private
Land
(Permissions
from district
collectorate )
Apply to Forest
& Environment
Department for
Forest Land
Apply to Gujarat
Industrial
Development
Corporation for
Industrial Estates
Apply to the SEZ
or Industrial Park
developer for land
In case land falls under Urban development authority limits, apply to UDA for Zoning / Zone Change Certificate and apply
to District Collectorate for NA permission
Apply for Consolidated Consent and Authorization from GPCB
Obtain permission under FCA &
WPA from competent Authorities
Obtain CRZ clearances (if
applicable) from F&ED
Apply for Power to the relevant Zonal OfficesPGVCL , Rajkot
(For Saurashtra & Kutch)
DGVCL , Surat
(For South Gujarat)
UGVCL , Mehsana
(For North Gujarat)
MGVCL , Vadodara
(For Central Gujarat)
Apply for Gas to the relevant companies Gujarat Gas
Company Ltd
Gail (India)
Ltd
Adani
Energy Ltd ;
GSPC Gas
Company Ltd
Sabarmati
Gas Ltd
Charotar Gas
Sahkari Mandali
Ltd
Apply for Water to
relevant Authorities
SSNNL : Narmada
Canal
Irrigation Department:
Other Canals
Local Governing
Body : Surface Water
CGWA : Ground
Water
GWIL Desalination
Plants
DEE in case
of GIDC
estates
Construction Permission from Urban Development Authority
Registration of Business Organization
Approvals/Registrations/Filling with competent authority for setting up the project
Identification of location within Gujarat for setting the Industrial Unit
Land
Apply for Factory License from department of Labour & Industrial Health and Safety
Apply to the
District
Collectorate for
Government
Land
Private
Land
(Permissions
from district
collectorate )
Apply to Forest
& Environment
Department for
Forest Land
Apply to Gujarat
Industrial
Development
Corporation for
Industrial Estates
Apply to the SEZ
or Industrial Park
developer for land
In case land falls under Urban development authority limits, apply to UDA for Zoning / Zone Change Certificate and apply
to District Collectorate for NA permission
Apply for Consolidated Consent and Authorization from GPCB
Obtain permission under FCA &
WPA from competent Authorities
Obtain EC from MoEF,
GoI for Category A
projects. SEAC, F&ED,
GoG for Category B
projects (listed in EIA
notification
Dt14.09.2006)
Obtain CTE
from GPCB(in
case land is
declared as
dark zone)
Obtain CRZ clearances (if
applicable) from F&ED
Apply for Power to the relevant Zonal OfficesPGVCL , Rajkot
(For Saurashtra & Kutch)
DGVCL , Surat
(For South Gujarat)
UGVCL , Mehsana
(For North Gujarat)
MGVCL , Vadodara
(For Central Gujarat)
Apply for Gas to the relevant companies Gujarat Gas
Company Ltd
Gail (India)
Ltd
Adani
Energy Ltd ;
GSPC Gas
Company Ltd
Sabarmati
Gas Ltd
Charotar Gas
Sahkari Mandali
Ltd
Apply for Water to
relevant Authorities
SSNNL : Narmada
Canal
Irrigation Department:
Other Canals
Local Governing
Body : Surface Water
CGWA : Ground
Water
GWIL Desalination
Plants
DEE in case
of GIDC
estates
Construction Permission from Urban Development Authority
Registration of Business Organization
Approvals/Registrations/Filling with competent authority for set
Land
Apply to the
District
Collectorate for
Government
Land
Private
Land
(Permissions
from district
collectorate )
Apply to Forest
& Environment
Department for
Forest Land
Apply to Gujarat
Industrial
Development
Corporation for
Industrial Estates
Apply to the SEZ
or Industrial Park
developer for land
In case land falls under Urban development authority limits, apply to UDA for Zoning / Zone Change Certificate and apply
to District Collectorate for NA permission
Apply for Consolidated Consent and Authorization from GPCB
Obtain permission under FCA &
WPA from competent Authorities
Obtain CRZ clearances (if
applicable) from F&ED
Apply for Power to the relevant Zonal OfficesPGVCL , Rajkot
(For Saurashtra & Kutch)
DGVCL , Surat
(For South Gujarat)
UGVCL , Mehsana
(For North Gujarat)
MGVCL , Vadodara
(For Central Gujarat)
Apply for Gas to the relevant companies Gujarat Gas
Company Ltd
Gail (India)
Ltd
Adani
Energy Ltd ;
GSPC Gas
Company Ltd
Sabarmati
Gas Ltd
Charotar Gas
Sahkari Mandali
Ltd
Apply for Water to
relevant Authorities
SSNNL : Narmada
Canal
Irrigation Department:
Other Canals
Local Governing
Body : Surface Water
CGWA : Ground
Water
GWIL Desalination
Plants
DEE in case
of GIDC
estates
Construction Permission from Urban Development Authority
Registration of Business Organization
Approvals/Registrations/Filling with competent authority for setting up the project
Identification of location within Gujarat for setting the Industrial UnitIdentification of location within Gujarat for setting the Industrial Unit
Land
Apply for Factory License from department of Labour & Industrial Health and Safety
Apply to the
District
Collectorate for
Government
Land
Private
Land
(Permissions
from district
collectorate )
Apply to Forest
& Environment
Department for
Forest Land
Apply to Gujarat
Industrial
Development
Corporation for
Industrial Estates
Apply to the SEZ
or Industrial Park
developer for land
In case land falls under Urban development authority limits, apply to UDA for Zoning / Zone Change Certificate and apply
to District Collectorate for NA permission
Apply for Consolidated Consent and Authorization from GPCB
Obtain permission under FCA &
WPA from competent Authorities
Obtain EC from MoEF,
GoI for Category A
projects. SEAC, F&ED,
GoG for Category B
projects (listed in EIA
notification
Dt14.09.2006)
Obtain CTE
from GPCB(in
case land is
declared as
dark zone)
Obtain CRZ clearances (if
applicable) from F&ED
Apply for Power to the relevant Zonal OfficesPGVCL , Rajkot
(For Saurashtra & Kutch)
DGVCL , Surat
(For South Gujarat)
UGVCL , Mehsana
(For North Gujarat)
MGVCL , Vadodara
(For Central Gujarat)
Apply for Gas to the relevant companies Gujarat Gas
Company Ltd
Gail (India)
Ltd
Adani
Energy Ltd ;
GSPC Gas
Company Ltd
Sabarmati
Gas Ltd
Charotar Gas
Sahkari Mandali
Ltd
Apply for Water to
relevant Authorities
SSNNL : Narmada
Canal
Irrigation Department:
Other Canals
Local Governing
Body : Surface Water
CGWA : Ground
Water
GWIL Desalination
Plants
DEE in case
of GIDC
estates
Construction Permission from Urban Development Authority
Source: Doing Business in Gujarat 2008, Government of
Gujarat
DOING BUSINESSGujarat September 2009
85
Key approvals required … (1/7)
Step 1: Approvals/registration/filing information for setting up project
Key approvals required
Procedure Authority
SSI Registration District Industries Centre (DIC) of the district where unit is to be located
Industrial Entrepreneur‘s Memorandum (IEM) District Industries Centre/Industries Commissionerate, Government of Gujarat
Filing Industrial Entrepreneur‘s Memorandum (IEM)
Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India
Letter of Intent (LoI) Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi
Letter of Permission (LoP)
For automatic approval: The Development Commissioner, Kandla Special Economic Zone, Ministry of Commerce and Industry, Government of India, Kandla (district Kutch), Gujarat
For other industries: Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
86
Key approvals required … (2/7)
Step 2: Registration of business organisation
Type of Organisation Authority
Sole proprietorship No registration required
Partnership
Registrar of Partnership Firms,
Government of Gujarat,
Vechan Vera Bhavan, Ashram Road
Ahmedabad — 380 009
Corporation
(Private/Public Ltd) — Registration of name and submission of three
documents — declaration for incorporation of the company, particulars
for appointment of MD, notice for situation of registered office, Articles
of Association
Registrar of Companies, Government of India (office located in Gujarat)
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
87
Key approvals required … (3/7)
Step 3: Acquisition of land
• In Gujarat, investors can acquire land in the
following ways:
• Purchase land in GIDC estate
• Apply for state government land
• Purchase private land
• Forest land
• Land parcel in SEZ or industrial park
Land Authority
In GIDC estate
Concerned office of Gujarat Industrial Development Corporation (GIDC)
Government land
Concerned district collector or collector/district development officer
Private land (purchase of agricultural land for non-agricultural use)
Owner of the private land
Forest land
1. Ministry of Forest & Environment
2. State Wild Life Board, National Wild Life Board and Supreme Court (for land reserved for wildlife sanctuaries or national parks)
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
88
Key approvals required … (4/7)
Step 4: Clearance from Pollution Control Board
• No Objection Certificate (NOC) to be obtained
from Gujarat Pollution Control Board (GPCB)
• Consent of GPCB mandatory to commence
production
• Environmental Impact Assessment (EIA) has now
been made mandatory under the Environmental
Protection Act, 1986, for 29 categories of
development activities involving an investment of
US$ 12.20 million and above
• GPCB has exempted around 100 industries in the
small scale and cottage sector from obtaining NOC
Applicability Authority
Environmental clearance
Ministry of Environment and Forest, and Government of Gujarat (State Impact Assessment Committee)
Consent to Establish (CTE)
GPCB
Consolidated consent and authorisation
GPCB
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
89
Key approvals required … (5/7)
Step 5: Arrangement of power
Purpose Authority
GIDC estates Zonal office
Locations other than GIDC estates
Zonal distribution company
Captive powerGujarat Energy Transmission Corporation Limited (GETCO)
Step 6: Arrangement of gas
Purpose Authority
Gas supplyGujarat State Petroleum Corporation (GSPC) or private distributor
Step 7: Arrangement of water
Location of Unit Authority
Proximity to Narmada CanalSardar Sarovar Narmada Nigam Limited (SSNNL)
For drawing
canal/underground water
other than Narmada Canal
Irrigation department
For drawing water from the
pipeline of Gujarat Water
Infrastructure Limited (GWIL)
GWIL
Surface waterLocal governing bodies (municipal corporations)
For the usage of ground water
for industrial purposes from
the area falling under dark
zone, over-exploited area or
saline area
The Superintendent, from Gujarat, Water Resources Development Corporation (GWRDC)
Water supply for industrial
purposes within GIDC estate
Deputy Executive Engineer of the estate concerned
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
90
Key approvals required … (6/7)
Step 8a: Approval of building plans
Location of unit Authority
In GIDC estatesGIDC executive engineer in the region
Outside GIDC estates
Director, Industrial Safety and Health, is authorised to give approval to plans of the premises, equipment layout and process layout, registration of factory and grant of licenses
Step 8:
Approval from Labour and Employment Department
Step 8b: Approval from Labour Department
Purpose Authority
Statutory/procedural formalities under various labour laws and the level of approvals varies with the stage and volume of employment
Labour Commissioner
Step 9: Approval from Commercial Tax Department
Purpose Authority
Value-Added Tax (VAT) registration
Respective area officer in whose jurisdiction the chief place of business falls
Central Sales Tax (CST) registration
Respective area officer in whose jurisdiction the chief place of business falls
Step 10:
Approval from Department of Geology and Mining
Purpose Authority
Mining leaseDepartment of Geology and Mining
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
91
Key approvals required … (7/7)
Step 11: Other approvals
Applicability Authority
Boiler registrationChief Inspectorate, Steam and Boiler, Government of Gujarat
Handling of hazardous items
Director of Industrial Safety and Health, Government of Gujarat
Storage of explosive materials
Directorate of Explosives,
Government of India
Customs bonding for 100% EoUs located outside SEZs
Collector of Customs & Central Excise, Government of India
Quality certificationBureau of Indian Standards (office located in Gujarat)
Single-window clearance
Industrial Extension Bureau (iNDEXTb) provides single point contact for all investment activities in Gujarat
Sector-specific approvals
Sector Authority
Food and drug manufacturing units
Commissionerate of Food & Drug Administration, Government of Gujarat
Registration for milk products
Milk and Milk Products Board, New Delhi
Projects located within 500m of the coastline
Gujarat Maritime Board
Source: Doing Business in Gujarat 2008, Government of Gujarat
DOING BUSINESSGujarat September 2009
92
Business climate
Availability of skilled manpower
• Renowned academic and research institutions - IIM,
NIFT, NID, CEPT, NIPER, IIT
• Industrial Training Institutes (ITIs) in each district
for training manpower at shop-floor level
• Government‘s initiatives to encourage innovation in
the education sector
Infrastructure availability
• 42 ports, 13 airports
• Extensive road and rail network
• Highest number of airports
• 24-hr power supply to urban and rural areas
• 2,200 km gas grid for gas supply to industrial areas
• 83 product clusters, 202 industrial estates, 55 SEZs,
Delhi-Mumbai Dedicated Freight Corridor
DOING BUSINESSGujarat September 2009
93
Business climate
Proactive governance
• Strong regulatory and judiciary framework
• SEZ Act
• Gujarat Infrastructure Development Act
• Gujarat Port Policy
• Gujarat Industrial Policy 2000
• Gujarat Build Operate Transfer Law
• Cluster Development Scheme
• Port privatisation
Growing economy and industry
• Higher GSDP growth than country‘s average
• Robust financial growth
• Strong presence across all industry sectors
• Manufacturing facilities of leading national and
international companies
Investment destination of choice
• According to the outlook for corporate investments
by Reserve Bank of India (RBI), Gujarat ranks first
for private corporate investments in the country
• As per Deutsche Bank research, Gujarat offers the
most favorable outlook for infrastructure projects
Increasing investments
1420
152
243
76226 675
8663
0
50
100
150
200
250
300
2003 2005 2007 2009
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Investment (US$ billion) MoUs
DOING BUSINESSGujarat September 2009
94
Gujarat September 2009
Infrastructure Status
State Policies and Incentives
Business Opportunities
Doing Business in Gujarat
Overall State Competitiveness
Gujarat ‗s Economy and Socio - Economic Profile
The focus of this presentation is to discuss…
95
Overall state competitiveness
Parametre
Opportunities in different industries
Tourism
Information technology
Food processing industry
Crude oil and natural gas
Petrochemicals
Pharmaceuticals and biotechnology
Agriculture, food and agro processing industry
Minerals-based industry
Engineering industry
Chemicals industry
Apparels and textiles
Retail
Electronic hardware
Gems and jewellery
High
Medium
Low
OVERALL STATE COMPETITIVENESSGujarat September 2009
96
Overall state competitiveness
Parametre
Doing business
Fiscal and non-fiscal incentives
Cost of doing business
Availability of labour
Ease of setting up and carrying out business
Industrial Infrastructure — existing and proposed
Power
Connectivity
Industrial estates/areas
STP
EPIP
EPZ
IIDC
Industrial growth centres
High
Medium
Low
OVERALL STATE COMPETITIVENESSGujarat September 2009
97
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Gujarat September 2009