gujarat: investors’ destination of choice in india
TRANSCRIPT
Gujarat
GujaratIndia
Gujarat: Investors’ Destination of Choice in India
Introducing India…
Largest free market democracy in the world
4th largest economy by PPP
GDP growth estimated at 8.4% in 2005-06 and forecast to grow by 7.7% in 2006-07
Targeted growth of 9% in 11th Five Year Plan (2007-12)
Highly cost competitive manufacturing sector , which grew at grew 9% in 2005-06
10th most Industrialised country
2nd largest talent pool of scientists and engineers in the World
2nd largest English speaking nation in the world
One of the most buoyant capital markets
INDIA- FACT FILE AMONG THE TOP 5 ECONOMIES (PPP) 2005
USD bn
GDP at (PPP) USD 3.06 trillion in 2005-06
Exports USD 103 billion in 2005-06
Imports USD 133 billion in 2005-06
FDI of USD 7.5 billion in 2005-06
Source: World Competitiveness Yearbook 2005; Britannica Yearbook, CIA, World factbook, May 2006; E&Y analysis
Source: CMIE and Tata Statistical Outline of India, Industry sources
10,978
6,410
3,6292,2793,062
02,0004,0006,0008,000
10,00012,000
US China Japan India Germany
India has arrived…
AdvantageIndia
2nd best destination for manufacturing projects & the most attractive investment destination - IBM Study
Among the most favoured investment destinations -UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.
Most attractive investment destination for offshoring -AT Kearney Study
Best technology licensing regime - UNCTAD’s Global Competitiveness Report
India’s Competitive Advantage vis-à-vis Other Nations
India
PhilippinesMexico
Israel
Ireland
RussiaChina
Indonesia
MalaysiaBrazil
Turkey
Surplus
Shortfall
Projected workforce in 2020
PEOPLE STRENGTH• Productivity/quality• Cost Competitiveness• English language skills
Low High
QUANTITY AND QUALITY OF MANPOWER
India to have the Highest Demographic Dividend by 2020
Source: BCG Analysis
+Time to securefirst-mover
advantage in IndiaIncreasing FDI
inflows
Rapidly evolving market
Booming Consumerism
Vibrant Economy
India beckons…
Having said that, where in India?
…Introducing to you,
“Gujarat - The Land of Opportunities”
India: EMERGING………..SURGING
Gujarat: Explore – Envision - Invest
• Gujarat, on the west coast of India, is the definitive gateway for
international trade
• Accounts for 6% of India’s geographical area
• Population of over 50 million (5% of India)
Introducing to you …Gujarat -The Land of Opportunities
Gujarat
GujaratIndia
Introducing to you …
Leading the Way in Chemicals and Petrochemicals (largest grassroot petrochemical refinery in the world)
Gujarat…The Land of Opportunities
Oil & Gas Capital of India (One of the largest gas producing regions in the country, with one of the most robust distribution networks in the country)
Production centre for Engineering & Auto (largest producer of sponge iron, glass shells for TVs, road-making equipment, conveying equipments, amongst others, in India )
Fast emerging IT services hub (Exports from Software Technology Parks in Gujarat registered growth at a CAGR of 47% during last 5 years
Harbinger of privatization in Port & Port Led Infrastructure(41 ports along a coastline of 1600 km and handling 25% of India’s cargo)
Introducing to you …
Gujarat…The Land of Opportunities
Agro & Food Processing - largest producer of castor, tobacco, isabgul (psyllium) and second largest producer of sesame seeds, cotton and groundnut
Pioneering State for Pharmaceuticals (first State in India to manufacture APIs and finished dosage forms)
End-to-End Value Chain Presence in Textiles & Apparel sector (Largest producer of cotton in India)
Diamond processing hub in India (80% of country’s diamond cutting & polishing activity and world’s second largest producer of gold jewellery)
Hub for ceramics manufacturing (70% of the country’s ceramics manufacturing)
Petroleum Products
34%
Engineering Industries
9%
Food Processing9%
Chemicals & Pharma
27%
Textiles & Apparel
7%
Metallurgical Ind.6%
Rubber & Plastic Prod.2%
Mineral Based Industries
2%
Paper Prod.1%
Others3%
Gujarat: The Growth Engine of India
Gujarat: Sectoral Profile
9.6Rubber & Plastic Prod.
9.2Food Processing
7.0Engineering Industries
29.8Chemicals & Pharma
11.1Metallurgical Ind.
10.5Paper Production
14.9Textiles & Apparel
80.0Diamond Processing
12.0
38.1
Share of National Output (in %)
Mineral Based Industries
Petroleum Products
Sector
Source: Socio-Economic Review, Gujarat State 2005-06
Gujarat: Sector Composition of Production
Exports: 14% of India, Average growth rate: 9% pa; Industrial growth rate: 15% pa
18% of Investment in India, 16.10% of national output, 13.2 % of the Value Addition
The journey has been exciting and a result of focused and relentless efforts
A quick look at the State’s approach and significant achievements towards industrial
development…
Ambitious in Setting Growth Targets…
6.8 6.2 6.1
10.2
7.96.9
10.1
6.5 7.0 7.46.2
4.4
8.3 8.0 7.68.8
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Growth Rate Targets of Major States For the 10th Five Year Plan
Source: NIC, Government of India (GOI)
9.8%Gujarat’s 4 year average growth during the 10th five year plan (2002 – 2007)
Reflection of the Investment Climate in Gujarat
Total Investments State-wise (1991- 2006)In USD bn
Source: NIC, Government of India (GOI) *As on July, 2005
7866
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Gujarat alone holds 16.21% of the total investments, with a high ratio of realizing investment proposals
In last five years (2001-2006), the state has attracted highest investment among all states in India – USD 40.66 billion
State Infrastructure – Accounting Progress
Natural Resources
Agriculture: One of the largest producers of cotton, milk, groundnuts, sesame, castor, psyllium etc.
Minerals & Marine Resources: Rich in oil and gas, 1600 km coastline etc.
Gas One of the largest gas producing regions in the country
Only state to have an Integrated 2,200 km Gas Grid
2 LNG Terminals
State Infrastructure – Accounting Progress
Power
Installed capacity of over 13,000 MW
Uninterrupted power supply to rural areas and industrial units
Per capita power consumption is 1,175 units far higher than India’s average of 592 units
Gujarat Electricity Board (GEB) unbundled into 7 companies, all functioning independently
Connectivity
71 % of the roads in the State are surfaced, with 98% rural connectivity, the highest in the country
India’s first National Expressway from Ahmedabad to Vadodara
10 airports (including 1 international airport) and 6 airstrips under development
41 ports along a coastline of 1600 km
Excellent rail connectivity
State Infrastructure – Accounting Progress
WaterStatewide drinking water grid to be completed by 2007
Major irrigation schemes associated with all rivers (eg. Narmada –Sardar Sarovar Project)
Telecom
Highest teledensity amongst the larger states (9.17 per 100 population)
Over 4 million mobile subscriber base in Gujarat
Excellent data connectivity, GSWAN (Gujarat State Wide Area Network)
EnvironmentProtection
Common Effluent Treatment Plants (CETP) for SMEs
Effluent Diposal Channels for treated effluents
Solid Waste Disposal Sites and Incineration Units
Education
~500,000 students across disciplines graduate from Gujarat every year
49 polytechnics offering diploma courses in engineering having 16500 seats
39 engineering colleges offering undergraduate courses having 12500 seats
Several internationally reputed institutions such as,Indian Institute of Management (IIM)National Institute of Design (NID)Institute of Rural Management (IRMA)National Institute of Fashion Technology (NIFT)Mudra Institute of Communications, Ahmedabad (MICA)Centre for Environment Planning & Technology (CEPT)
Social Infrastructure – Accounting Progress
Healthcare25 District Hospitals, 25 Sub-district Hospitals, 20 Private Specialty Hospitals in the State
Contributes 25-30% to the healthcare market in India
Schemes such as ‘Healthcare for all’, ‘Chiranjeevi Yojana’, etc. to make healthcare accessible to rural community
TourismUnique places to visit for tourists:
Remains of the ancient Indus Valley Civilization
Gir forest, the Habitat of Asiatic Lions
Dwarka and Somnath temples
2006 being marked as year of tourism
Social Infrastructure – Accounting Progress
State Infrastructure – Accounting Progress
Urbanization
High urbanization with 37.67% of the population living in 242 urban areas
Ahmedabad, Baroda, Surat, Rajkot etc. enjoy excellent connectivity with Mumbai, India’s commercial capital
2005 declared Year of Urban Development
Development work of more than US $ 215 Billion
Industrial Relations in the State
Industrial Relations
Least mandays lost due to industrial unrest – 0.94 % of the country as against 16.2% industrial production
Only state in the country to allow exit options to investors in terms of termination of labours and closure of units in SEZs
Ahmedabad has the lowest labour costs amongst the major cities in India
- 50% lesser than Delhi
- 40% lesser than Pune
Amendment of labour legislations to provide total freedom to industry to employ labour on contract basis across the State
Industrial & Civic
Infrastructure
23 SEZs approved in the State
182 industrial estates
Township Policy to be implemented by end of 2006
10 Mega Townships proposed with assistance of Central Government
Proposed bus corridors as a part of the Bus Rapid Transport System (BRTS)
Industrial & Civic Infrastructure – Accounting Progress
Success meets Recognition – “Laurels and Awards”
SWAGAT, the on-line grievance redressal programme is recognised internationally as Best Practice Case Study in e-transparency, openness and accountability by Commonwealth Telecommunication Organisation and Manchester University
Worlds Bank’s “Green Award” for social and environmental consciousness
UN SASAKAWA Award for “ Reconstruction and Rehabilitation”
CAPAM: Gold Medal for “Partnership, transparency”
“Hitech Excellence Award”
“Outstanding Achievement Award” by Ministry of Power (Rating by CRISIL)
Gujarat bestowed with awards from world-renowned organizations
“Investment Environment is the best in Gujarat among big states of
India and has recorded the fastest economic growth among all states”
(Source: India Today’s exclusive report “India’s Best & Worst States”, 15th August, 2005)
Investing in Gujarat...Your Strategic Imperative
‘The Early Movers’ – Global Companies in Gujarat
Chemical & Petrochemical:BASF, Bayer Crop Sciences, Lanxess ABS Ltd, GE, etc.
Oil & Gas Capital of India Cairn, Shell, British Gas, Niko, etc.
Port & Port Led Development Gaz de France, Maersk, etc.
Engg. & Auto:Hitachi, General Motors, Ingersoll Rand, Matsushita, etc.
Agro & Food Processing McCain Foods India, McDonalds, etc.
Pharmaceuticals Wyeth, Sanofi Aventis, Abbott, Sidmak Laboratories, etc.
Textiles & Apparel: Nike, Sara Lee, etc. (Sourcing)
‘The Early Movers’ – Global Companies in Gujarat
Ceramics:HR Johnson Tiles, Bell Ceramics, Humber, etc.
A Gamut of Investment Opportunities Await You
Agro & Food Processing
Textiles
Engineering & Auto Components
Chemicals & Petrochemicals
Pharma & Biotech
Gems & Jewellery
Ceramics & Cement
Infrastructure Projects (Ports, Power, Gas Distribution and others)
Italy ranks eleventh in foreign direct investment (FDI) inflow in India having total inflow of US$ 522.4 million having 1.46 % share in total inflow of US $ 35.2 billion from August 1991 to July 2006.
In Gujarat 27 projects approved with an investment of US $ 154.2 millionand equity of US $ 25.5 million
In addition, 41 Foreign Technology Agreements have been approved
The important collaborations from Italy in Gujarat are:Inco Industria
Lotto SPA
Mazzini ICI
Panafin SPA
Pirelli Coordinamento
Trend Group SPA
Gujarat & Italy… Partners in Progress
Date : 12-13 January 2007
Venue : Science City, Ahmedabad, Gujarat, India
Vibrant Gujarat – Global Investors Summit 2007
Explore The Opportunities
Envision Your Success
Invest In Your Future and Growth
…in one of the most exciting and promising business regions of the world today
VISIT GUJARAT TO…
You Are Cordially Invited…
THANK YOU
Industries & Mines Department, Govt. of Gujarat
iNDEXTb -Industrial Extension Bureau
Gujarat Industrial Development Corporation
Gujarat Infrastructure Development Board
http:// www.gujaratindustry.gov.in
http://www.indextb.com
http://www.gidc.gov.in
http://www.gidb.org
Vibrant Gujarat 2006 – Global Investors’ Summit http:// www.vibrantgujarat.com
Industries Commissionerate, Govt. of Gujarat http:// www.ic.gujarat.gov.in
Connecting Further to Gujarat…
THANK YOU
Germany ranks 6th in terms of foreign direct investment (FDI) inflow in
India having total inflow of USD 1610 million having 4.47% share in total
inflow of USD 35.2 billion from Aug 1991 to July 2006
In Gujarat, 68 projects have been approved with an investment of USD
751 million and equity of USD 168.6 million
In addition, 89 Foreign Technology Agreements have been approved
The important collaborations from Germany in Gujarat are:BASF GroupBattenfield GmbhBock GmbhLinde AgSchering AGSiemens
Gujarat & Germany… Partners in Progress
Israel ranks 32nd in foreign direct investment (FDI) inflow in India having total inflow of US$ 43.93 million having 0.11% share in total inflow of US$ 35.2 billion from August 1991 to July 2006.
In Gujarat 4 projects have been approved with an investment of US$ 6 million and equity of US $ 0.86 million.
In addition, 7 Foreign Technology approvals have been approved in Israel.
The important collaborations from Israel in Gujarat are:
Cytolab
Gujarat & Israel… Partners in Progress
THANK YOU
Gujarat & France… Partners in Progress
France ranks 8th in foreign direct investment (FDI) inflow in India having
total inflow of USD 814.6 million with 2.31% share of total inflow of USD
35.2 billion from Aug 1991-July 2006
In Gujarat , 14 projects have been approved with an investment of USD
342.6 million and equity of USD 72.9 million
In addition, 33 Foreign Technology Agreements have been approved
The important collaborations from France in Gujarat are:EurochtelInstitut Francais Du PetSanofi-AventisMultibase SASatelec SA
THANK YOU