Welcome to Gujarat

India is an emerging economic super

power

Gujarat: Global business hub

Highlights of Gujarat’s development

Opportunities for collaboration with

Gujarat

Vibrant Gujarat:2013

Flow of Thoughts

Vibrant India

2006-07

2008-09

2010-11(Q)

- 200 400 600 800 1,000 1,200

Sectors' contribution to GDP

Agriculture Industry ServicesUSD, bil-lion

2006 2007 2008 2009 2010 2011

0.0%

5.0%

10.0%

15.0%9.5% 9.6% 9.3%

6.8% 8.0% 8.6%

GDP growth rate

2

Section 1 – India - Preferred investment destination

Germany

US

Brazil

India

China

0 0.20.40.60.8 1 1.21.41.61.8 2

1.52

1.52

1.6

1.73

1.87

FDI Confidence Index, 2012

The 2nd preferred investment destination

(World Investment Prospects Survey 2010-2012 by UNCTAD)

USD 254 billion of FDI inflows between April 2000 and March 2012

Services30%

Telecommunica-tions12%Computer software

and hardware11%

Real es-tate11%

Construc-tion ac-tivities

10%

Power7%

Auto-mobile

industry6%

Metallurgical industries

6%Pharmaceuticals

5%

Petro-leum and natural

gas3%

FDI - Top Sectors

9th largest economy in the world

by nominal GDP and 4rth largest by purchasing power

parity (PPP)

Recorded the highest growth rates in the mid-2000s

One of the fastest growing economies in

the world (GDP – 8.6% in 2011)

India is one of the major G-20 economies 

 17th largest exporter and 11th largest importer in the world

CAGR Export

s14%

CAGR Import14%

Main Export Partners

US 13%

UAE 12%

China 8%

Hong Kong4%

Main Import Partners

No Change

Decline

Growth

US 6%

UAE 7%

China

12%

Australia5%

Saudi Arabia6%

A.T. Kearney Survey

India – Preferred Investment Destination

1990-91 1994-95 2000-01 2004-05 

2010-11

050

100150200250300350400

Trade Scenario, USD bil-lion

Export Import

16%

17%

17%

18%

19%

20%

25%

26%

26%

26%

25%

26%

59%

58%

57%

56%

56%

54%

The Global Business Hub5

India – The Growth Story

United States; 20.8%

China; 11.4%

Japan; 6.3%

India; 4.7%

Germany;

4.2%

Russia; 3.3%

United Kingdom; 3.2%

France; 3.1%

Brazil; 2.9%Italy; 2.6%

Mex-ico;

2.2%

Spain;

2.0%

Korea; 1.9%

Canada; 1.9%

Turkey; 1.3%

Indonesia;

1.3%

Is-lamic

Republic of Iran; 1.2%

Australia; 1.2%

Taiwan; 1.0%

Netherlands; 1.0% Poland; 1.0%Saudi Arabia; 0.9%Argentina,

0.8%

% Share of Global GDP (PPP) TRILLION $ ECONOMY

4th largest economy in the world in PPP terms

7% ANNUAL GROWTHduring global economic slowdown

8.6 % ANNUAL GROWTH PROJECTION

for the financial year 2010-11

Bra

zil

India

Kore

a

Russ

ia

Taiw

an

Unit

ed S

tate

s

Euro

pean U

nio

n

AS

EA

N-5

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2008

2009

2010*

2011*

7%

GDP Growth Rate (%)

*Estimated

Booming domestic demand

Advantage India

World's largest democracy with

1.2 billion people

Enabling business

environment with greater global

participation

Strong Market Fundamentals

Land of abundant natural resources

and diverse climatic

conditions

Impetus on Infrastructure Development

Access to technology as

a result of the IT

revolution

Competitively priced skilled

labour

Progressive simplification and rationalization of

direct and indirect tax structures

Gujarat emerging as Global Hub

9

Why Gujarat?

A highly industrialized state with 7.5% contribution to India's GDP (2011-12)

Contributes 17% of India’s industrial output (2011-12)

26% share in investments (implemented projects) in India, till 2011

Highest contribution to India's exports (2010-11) - 25%

Highest share of India's total port cargo is handled at Gujarat's ports (2011-12) - 37%

10

Gujarat – economy on a high trajectory

Gross State Domestic Product growing at a five year average of

~10%

Highest Degree of Openness (ratio of

exports from state to Gross State Domestic

Product) at ~53%Textiles

Pharmaceuticals

Chemicals

Petro-chemicals

Plastic industry

Salt production

Diamond processing

Soda Ash

31%

35%

51%

62%

65%

78%

80%

98%

Major contributor to In-dia's manufacturing

sector

Source: Gujarat Socio-economic review 2011-12; Annual Survey of Industries 2008-09; DIPP SIA statistics

11

Robust manufacturing

Gujarat

Brazil

Russia

India

Germany

South Korea

Japan

Malaysia

China

Thailand

28%

16%

16%

16%

17%

18%

18%

26%

34%

40%

Gujarat’s manufacturing base is at par with world’s best manufacturing economies

Gujarat is targeting to increase its manufacturing contribution to its GSDP to 32% in the next 5 years

Gujarat – leveraging strategic location

GUJARAT

London

Newark

Kuwait

DohaDubaiSharjah

Singapore

Muskat

Sea-based trade destinations – West Europe, Middle East, AsiaDestination of growing potential

Gujarat has a 1600 km

long coastline having 42 ports – the

highest number of ports in any Indian state

Gujarat – robust infrastructure

• Robust physical infrastructure

in tune with modern times

- Excellent road network, the

best in the country

- Home to highest number

of ports and airports in

India

- The only Indian state to have

a state-wide gas

integrated network of

2,800 kmPower-surplus state with

uninterrupted power supply in every town and

village

Gujarat Ports

• Ports in Gujarat handled total traffic of about 342 MMT in 2011-12, accounting for 37% of total cargo traffic

• Due to our strategic location, we are looking to become a transhipment hub

Maroli

Hazira

Dahej

Dholera

BhavnagarMithivirdi

PipavavSimar

Porbandar

OkhaSikka

JamnagarNavlakhi

KandlaJakhau

Positra

Khambhat

Mahuva

Major Port

Private Sector Ports

GMB* Ports

Jafrabad

Mundra

Sutrapada

Source : Indian Port Association

Several firsts in India• Private port at Pipavav in

1992

• Country’s only Liquid

Chemical Port Terminal at

Dahej (PPP)

15

Gujarat – R&D Scenario

• Gujarat accounts for over 10% of the total R&D spending of India in 2010-11

• The state has attracted maximum foreign technology transfer agreements from 1991 to 2011, giving further boost to research and development

• The state has over 35 R&D and specialized institutions, focusing on applied research for major manufacturing sectors including pharmaceuticals & biotechnology, chemicals & petrochemicals, auto & engineering, renewable energy, etc

• Key sector – Pharmaceuticals and Biotechnology. The state has 40% of the Contract Research Organizations in the country. Key R&D segments include clinical research, genetic engineering, drug research and development

16

Government initiatives Support for research and development institutions scheme

• Announced by the Government of Gujarat to support development in the R&D sector

• Operative period – February 2009 to February 2014

• Proposed benefits – up-gradation of facilities and setting up of new R&D institution, testing facilities, incubation center, etc

• For assistance to contract/sponsored research work:

• R&D Institutions, including those established by Government and Private sector Institutions recognized by Department of Scientific and Industrial Research, Govt. of India and engaged in sponsored R&D work.

• AICTE approved professional colleges including autonomous as well as those affiliated to Universities, taking up sponsored R&D work from industry.

For support to R&D

Institutions, assistance

of upto 60% of the project cost is provided (excluding cost of land

and building)

For assistance

to contract/sp

onsored research

work, assistance

of upto 50% of the project cost is provided (excluding cost of land

and building)

subject to a maximum of INR 50

Lakh (USD 100,000)

17

Government initiatives – International Centre for Entrepreneurship & Technology (iCREATE)

• iCreate is the Gujarat government’s initiative to promote innovation.

• To be developed as a world class innovation centre on a sprawling 34-acre campus, aimed at providing the best environment to young entrepreneurs to innovate and create businesses which in turn will result in prosperity for the state as well as India

18

Gujarat – strong urban, social and educational infrastructure

Gujarat is home to some of the best educational institutes in India – Indian Institute of Management, Ahmedabad, National Institute of Design, Indian Institute of Technology

Gujarat is the first state in the country to successfully implement the Bus Rapid Transit System (BRTS) in Ahmedabad

Projects like Sabarmati River Front Development are unique to Gujarat with the aim of creating quality space for cultural and recreational activities

Surat, Vadodara and Rajkot are ranked amongst the fastest growing cities of India

Ahmedabad

voted 3rdfastest

growing city of the world by

Forbes

Gujarat Social development Human Development Indicators: Towards a better quality of life

Gujarat’s focus on HDI has started showing positive impacts through increase in enrolment, reduction in drop out , reduction in both infant and

maternal mortality and improved access to emergency 108 services

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

85

90

95

100

105

110

115

Gross Enrolment Ratio (Source: SSA, Gujarat Edu-

cation Department)

Boys Girls Total

2001 2002 2003 2004 2005 2006 2007 20080

100

200

Infant Mortality Rate (Per '000 live births)

Males Females

1991-2001 2001-03 2004-060

200400

Maternal Mortality Rate (Per one lakh live births)

19

20

Gujarat – Industry Responsive human capital

200,000 Industry responsive manpower through 300 skill

development centres by 2014

125,000 Industry responsive manpower through 250

ITIs every year

Engg degree Pharmacy degree

MBA MCA Engg diploma (Xth std.)

-

10,000

20,000

30,000

40,000

50,000

60,000

Increase in the number of seats in technical education

2007-082011-112

31% 15% 33% 31% 26% CAGR

Source: Directorate of Employment & Training, Gujarat

Intake has been doubled in the last 3 years

• Over 100,000 youth provided employment related skills by the Gujarat Knowledge Society• Over 100,000 urban poor youth were provided skills-development training under the Umeed

Yojana• 16 Nodal Institutes designated across sectors like engineering & automobiles, plastic and

packaging, textiles, apparel, chemical & petrochemicals, gems & jewellery and infrastructure through 7 Anchor Institutes

SEZs (55)

• Multi product

• Chemical

• Textile

• Pharma

• IT / ITeS

• Electronics

• Engineering

• Biotech

• Gems &

Jewellery

202 Industrial Estates

83 product clusters

Phase I Phase II Phase III Phase IV

Integrated large area

developments

• Special Investment Regions

(> 100 sq. km.)

• Industrial Areas

(50-100 sq. km.)

• Delhi Mumbai Industrial

Corridor

Phase of industrial development

Leve

l of

Inte

gra

tion

Current phase – involving Integrated development of large areas like SIR, PCPIR and DMIC – is poised to transform the industrial

scenario in the state

Gujarat – a new paradigm for industrial growth

21

22

Multinational Companies in Gujarat

Some Dutch Companies in Gujarat

•Royal Haskoning India

•Incotec India

•HaziraLNG Private Limited

•Gateway TechnoLabs Pvt. Ltd.

•Banner Pharmacaps India Private Limited

•Akzo Nobel Non Stick Coatings Limited

Ease of doing business

•Government and people who understand business and appreciate business people

•Industry implementation on a fast track

•Proactive state government which reaches out to industry•Home to largest sponge iron factory of the world•Home to cheapest car manufacturer of the world•Home to largest petro-refinery of the world

Gujarat: Opportunities for

Collaboration

25

Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)

A comprehensive economic development project spread over 500 sq. km.

• Located in South Gujarat which is the centre of industrial clusters specially the chemical and petro-chemical industries and other water-intensive industries, requiring special arrangement

Ahmedabad

PCPIR

Gujarat International Finance Tec-City (GIFT)

• Globally benchmarked International Finance Centre

• 12 km from Ahmedabad International Airport)• Central business hub• Targeting Financial Services & IT/ITeS sectors• Up to 90 million sq. ft. of real estate office and

residential space• First of it’s kind development in scale, scope and

quality• State-of-the-art infrastructure

India’s first SEZ for global Financial Services – GIFT emerges as a forerunner of new opportunities in Gujarat

Exciting opportunities: Delhi Mumbai Industrial Corridor (DMIC)

Haryana

Rajasthan

Gujarat

Maharashtra

Madhya Pradesh

Uttar Pradesh

Uttaranchal

Arabian Sea

Dadri

J.N.Port

End Terminals

DFC Alignment

DMIC: a high impact

industrial area within 150

km distance on both side

of DFC

A Global Manufacturing

and Trading Hub

Supported by world class

infrastructure

Dholera SIR : Ideally located, widely connected

• Airport and Sea Port in the vicinity• Express way and high-speed Metro Rail to link the SIR

with Ahmedabad• City Center, Industrial, Logistic, Knowledge and IT,

Recreation and Sports, Entertainment• World class residential facility• A “Singapore” in the making!!

Dholera Special Investment Region (DSIR) A world class development spread over 900 sq. km.

Determinants

Units

Total Area (including 22 villages)

900+ sq. km.

Urbanizable area 546 sq. km.

Source: GIDB, GoG

29

Clean Energy, responsible development model, solar panels

Development of wind-solar hybrid

installations and biomass projects

Development of solar manufacturing

capacities

Development of large scale solar parks and

canal-top solar projects

Tidal and geothermal projects first at a

pilot scale, and then at a commercial scale

Offshore wind projects development

Development of distributed gas based power

combined with non conventional

sources

Development of projects under solar rooftop programme

(Bhavnagar, Surat, Rajkot, Mehsana)

Project

Fund require

d(USD

billion)

Wind 2.65

SHP 0.02

Bio Mass 0.24

Solar 3.82

WTE 0.01

Total 6.74

Investment requirement

Non- Conventional power projects under

private sector

Source: Energy and Petrochemicals Department, Government of Gujarat

Metro-Link Express for Gandhinagar & Ahmedabad (MEGA)

An SPV named ‘METRO-LINK EXPRESS FOR GANDHINAGAR & AHMEDABAD (MEGA) CO. LTD.’

as a Project Development Agency

PROJECT COST

The estimated construction cost is USD ~ 3.8 billion for a route of ~ 101 km

Vibrant Gujarat

32

Vibrant Gujarat 2011 Summit

Partner Countries: Japan and Canada

Partner Organizations: UNIDO, JETRO and CBC

8,380 business intentions expressed

Participation: 101 countries, over 1,400 foreign delegates and more than 35,000 Indian delegates

Knowledge tie-ups: more than 70 TIE-UPS with leading institutions from across the globe

Highlights of Vibrant Gujarat 2011 Summit

Vibrant Gujarat- A journey so farThe journey from “investors’ summit” to “global business hub”

20032005

2007

2009

2011

Re-establishing Gujarat as Investment Destination

Making Gujarat as Preferred

Investment Destination

Making Gujarat as

Most Preferred

Investment Destination

Showcasing Gujarat –

The Growth Engine of

India

The Global Business

Hub

2013

The Global

Business Hub

A paradigm shift to an ideal platform for Knowledge, Social and Business Transformation

Vibrant Gujarat 2011

Partner Countries: Japan and Canada

Partner Organizations: UNIDO, JETRO and CBC

Exhibition Area: 35,000 sq m

Events: 12 Pre-Event Seminars, 11 Pre-Summit events, 39 events during Summit

Participation: 101 countries, over 1,400 foreign delegates and more than 35,000 Indian delegates

Knowledge tie-ups: more than 70 TIE-UPS with leading institutions from across the globe

Highlights of Vibrant Gujarat Summit 2011

VG 2013 - Summit

Fore Noon After Noon

11th January

2013

• SUMMIT INAUGURAL

• Country seminar• Partner Organization

Seminar• Sector Seminars• State Seminars • Round table

• B2B Meetings

12th January

2013

• SME Convention• Youth Convention• Country seminar • Partner Organization

Seminar• Sector Seminars• State Seminars • Other Seminar• Round table

• State Seminars• Other Seminars• VALEDICTORY

• B2B Meetings • B2B Meetings

13th January

2013

B2G & B2B Meetings - Online match-making on www.vibrantgujarat.com

Opportunity for

Netherlands

Seminar Timing GoG Anchor Proposed Event Partner

Partner Country/ Organization

11th January 2013

Technology Solutions for Environment Sustainability

1400 - 1700

E&FD & GPCB CII Sweden

Port-led Development 1400 -1700 GMB CII South Korea & Netherland

Wind and Solar Energy equipment manufacturing

1430 -1730 EPD/ GEDA FICCI EU India Chamber & Japan, Denmark

Developing integrated, smart, sustainable cities 1430 -1730 GIDB CII Japan, JETRO

12th January 2013

Gujarat – An Emerging Destination for Financial Services

1000 -1300 GIFT CII Canada

Land use efficiency – Urban Development

1000 -1300 UDD CII

Youth Convention – Empowering Youth 1000 -1300 Culture Dept. FICCI AIBC

Gujarat – An Emerging Transportation Hub

1000 -1300 IC ACMA & SIAM

SME Convention – Growth through Competitiveness

1000 - 1300

IC Office & GIDC

FICCI

Seminars & Conventions during Summit

VG 2013 – Summit

http://www.vibrantgujarat.com/

www.indextb.com/investment-inquiry/investment-inquiry.aspx

For more details about submit please visit

For investment inquiry ,please visit

About iNDEXTb

About iNDEXTb activities

• INDEXTb is the Gujarat’s investment promotion agency.

• To provide a platform for inward and outward investments to global investor’s community.

• Investment promotion both in industrial and infrastructure projects, acting as a single window facilitation center.

• Promoting foreign direct investments 

• Handholding project implementation from conceptualization to implementation

• Coordination with various departments of the state and central Governments  for

various clearances and issue resolving

• Coordination with chambers of commerce and industries associations across

India and abroad for promotion of trade and business

. Slide 39

December 2011

Investment facilitation Portal

December 2011Slide 40

Detailed information on investing in Gujarat

41

Visit us at www.vibrantgujarat.com

Welcome to Vibrant Gujarat 2013

Thank you!

Partner countries - Japan and Canada

Help in understanding Tax Framework

Business profits

Dividends

Interest

Royalty/FTS

Capital Gains*

Branch profit tax**

Domestic Company

Distribution Tax

Short term

Long term

32.44% (net basis)

42.02% (net basis)

16.22%

21.01%

NIL

42.02% (net basis)

21.01% (net basis)

10.51% (gross basis)

42.02% (net basis)

Foreign Company

Corporate Income Tax Indirect Tax

TRANSACTIONINDIRECT

TAXGENERIC

RATE

Import of goods into India

Customs duty*

26.85%

Manufacture of goods in India

Excise duty (CENVAT)*

12.36%

Provision of specified services

Service Tax 12.36%

Import of technology

R&D Cess 5%

Sale of goods intra-state

VAT** 4% to 15%

Sale of goods inter-state

CST**2%# or

equivalent to local VAT rate

Entry of goods into specific areas

Entry Tax / Octroi**

4% to 30%

* Customs / Excise duty rates would vary based on the description of the goods

** VAT/CST and Entry tax rates would vary based on the description of the goods and the State where the transaction is undertaken

Tax rate for Interest, Royalty, FTS & Capital Gains is for non-resident recipient (subject to fulfillment of certain conditions under the Act). These tax rates are applicable if income exceeds INR 10 million (USD 200,000 approx.).* assuming shares are unlisted** proposed under the Direct Taxes Code to be applicable from 2013-14