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
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