Gujarat – A Gateway to Opportunities

Agenda

• India – Poland relationship

• Gujarat – Socio Economic Achievements

• Why Gujarat – Opportunities for Polish Companies

Underlining the long-standing and fraternal ties

Poland has been a longstanding partner of India

Both the countries have mutually identified collaboration

opportunities in the sectors of food processing, clean

energy, logistics among other sectors

• Poland is a Partner Country for Vibrant Gujarat Global

Summit 2017

• A huge delegation led by Hon’ble Deputy Prime Minister of

Poland participated in Vibrant Gujarat Global Summit

2015

Former Hon’ble Chief Minister of Gujarat with former Hon’ble Dy. Prime

Minister of Poland

Major Indian companies in Poland :

• Ranbaxy

• ArcelorMittal

• HCL

• KPIT Cummins

• TZMO

• Inglot

• Geofyzika

Major Polish Companies in India:• Wipro

• Infosys

• Videocon

• Reliance industries ltd

Gujarat:

Connecting India to the World

Gujarat’s history is inked by trade and commercial links

Gujarat’s history showcases trade links with Middle

East, SE Asia, Africa and the Americas

Gujarat has succeeded in widening its industrial base

and creation of additional infrastructure that have

enabled the growth of manufacturing sector

Manufacturing sector contributes about 25% to

state’s GDP, higher than the national average and similar

to regions like Bavaria

This can be attributed to State policies that promote

establishing commercial connects overseas and

welcoming new partners

Gujarat, known as the land of entrepreneurs, boasts of being one of the leading industrialized states in the country today.

Gujarat - Snapshot

6% of India’s Geographical Area: 1,96,000 sq. km.

5% of India’s population:about 60 million

7.14% of India’s GDP`

10% of India’s factories

19% of India’s exports

19% of India’s industrial output

41% of India’s Port Cargo handled by Gujarat ports

53% of Indian crude oil production

World’s largest

Grassroots Refinery

1

World’s largest

producer of Castor,

Cumin, Fennel Seeds

and Isabgol

1World’s largest fully

mechanized Coal

Terminal

1World’s largest

Shipbreaking and

Recycling Hub

1

World’s largest gas

based Sponge Iron

Plant

1World’s first multi-

developer, multi-

technology, multi-

facility and

beneficiary Solar

Park

1World’s fourth largest

steel plant

4World’s largest single

location Copper

Smelter

1World’s third largest

Denim producer

3

World’s largest

producer of

processed diamonds

1

Numero Uno Gujarat

Growth powered by proactive governance

Gujarat: Opportunities for Polish Companies

Huge Export – Import Gaps exist in heavy engineering at India level

India level Import – Export Gap in Heavy Engineering Gujarat’s preparedness to bridge the gap

• More than 300 units in large sector and 75,00 units in small

and medium enterprises.

• 30 engineering product clusters

• Assistance for the following

through policy:

• Capital investment subsidy

• Saving of energy and water

• Interest subsidy

• Quality certification

• Patent registration

• Technology acquisition

Gujarat - Emerging auto hub

Gujarat’s preparedness

•Covers the entire range of products and facilities for castings & machine tools, brass parts, oil

engines & electric motors, submersible pumps, industrial valves & bearings, auto-ancillaries

•30 industrial clusters

Industry trend (India level)

India is the world’s second-largest two wheeler manufacturer and fourth-largest producer of commercial vehicles

The gross turnover of automobile manufacturers in India expanded at a CAGR of 17.7 per cent over FY07-11

Automobile export volumes increased at a CAGR of 19.1 per cent over FY05–13

Europe accounts for the largest share of Indian auto components exports (36%) followed by Asia (28%) and North America

(23%)

India Vision 2020

o Two and three wheelers

projected to expand at a

CAGR of 9% during

FY2013–20

o Commercial vehicles

expected to register a

CAGR of 16% during

FY2013–20

o Passenger vehicles to

increase at a CAGR of 16%

during FY2013–20

Gujarat - Chemical & Petrochemical hub of India

Indian chemical & petrochemical industry expected to reach about USD 250 billion by 2020

o Driven by favorable demographics, strong economic growth and increasing per capita consumption

The opportunity called GUJARAT

Gujarat contributes at national level:

o 91% of the production of soda ash

o 62% of petrochemical production

o 35% of chemicals production

o 18% of chemical exports

Availability of well established downstream processing units for polymers, rubber chemicals, plastics and fiber

intermediates

4 refining complexes with a total refining capacity of 93.7 MMTPA

PCPIR - A specifically delineated investment region of 453 sq. km. for the establishment of manufacturing facilities for

petroleum, chemicals and petrochemicals

Policy support

100% FDI permissible in the Indian chemicals sector

Manufacturing of most chemical products is de-licensed

Strong support for R&D

Gujarat - Energizing India with its robust infrastructure

Dahej LNG Terminal

Operated by Petronet LNG Ltd

Capacity of 10 MMTPA

• Meets about 20% of India’s total gas demand

A second LNG terminal at Dahej also

envisaged to berth the higher capacity

vessels

Hazira LNG Terminal

•Operated by Hazira Port Private Limited

•Capacity of 5 MMTPA

•Among the largest international

greenfield investments in India

Future LNG Terminals

•5 MMTPA LNG Terminal being

developed at Mundra

•First Floating Storage and Regasification

Unit (FSRU) being developed with the

capacity of around 10 MMTPA

• Highest number of oil and gas fields in India

• Accounts for: 53% of Indian Crude Oil production and ~31% of Natural Gas production in India

• State wide Gas grid of ~2400 kms

Gujarat has pioneered in tapping unconventional sources of energy

Gujarat contributes about 15% to India’s renewable

energy generation

State has a potential of 35,000MW in wind energy and

69,000MW in solar energy

Gujarat houses one of Asia’s largest solar park

Gujarat has initiated the world’s first canal-based solar power project

The state with a about 1600km coastline also has a

potential of 8200 MW in tidal energy

India needs as much as USD 200 billion to meet its target of installing 100 GW of solar power capacity and

around 60 GW of wind power capacity by 2022.

Installed capacity for wind power generation is projected to increase from 26.9GW to 142GW in 2040.

India has a solar potential of around 750 GW – Total installed capacity if of about 6.7 GW

• Solar Power Policy-2015

o The state has set a high Solar RPO target of 1%

o State will facilitate decentralized and off-grid solar

applications to meet various energy requirements for

domestic purpose

• Wind Policy 2016

o Obligated entities may purchase power from win

power projects to fulfill the RPO

• Small Hydel Policy 2016

o Electricity duty exempted

o Exemption from demand cut

Waste to Energy

Gujarat

Contributes approximately 28% of hazardous waste generation in India

Around 10,200 MT per day municipal solid waste is generated in the state of Gujarat

According to MNRE estimates, there exists a potential of about 112 MW of energy from MSW and sewage in Gujarat

Currently, there are: 41 CETPs, 8 common TSDFs and 8 common hazardous incineration facilities

Government initiatives include - Waste to energy policy 2016, online live tracking of

transportation and disposal of hazardous wastes through eXtended Green Node,

waste utilization through Co-Processing, clean–up of old waste dump sites, etc.

Total Municipal Solid Waste generation in India is 62 million tonnes per year (expected to increase to 230 million tonnes per year by 2041Only about 25% of this waste is processed and treated

More than 38 billion litres of sewage is generated in urban India annually out of which only 30% of sewage is treated

State has an enabling ecosystem for agro and food processing

Advantage Gujarat

largest producer of milk, offering ample downstream processing opportunities

Amongst the top 5 states in India's total cold chain storage capacity

8 Agro-climatic zones

Over 30,000 food processing units operational in Gujarat

Designated Agriculture Export Zones for mangoes & vegetables, value-added onions and sesame seeds

State Mission launched to promote Food Processing Units and Food Processing infrastructure Projects

State Agri Business Policy 2016 offers several incentives such as Capital Subsidy, Interest Subsidy, VAT Reimbursement, Freight Subsidy,

Power Tariff Incentive, etc.

The food processing sector in India has potential of attractingUS$33 billion in 10 years

Consumption in India is driven towards packaged and ready-to-eat foods

• Only about 2% of agricultural production being processed in India

• 100% FDI is permitted in the automatic route for most food products

The Indian export of processed food is growing at CAGR about 20.5%

Exports of Horticulture has shown an increase of 26.6% between 2011-12 and 2013-14

Well Established Pharmaceutical Hub catering to Global Markets

India Industry Trends

• Contributes about 40% to India’s total pharma production and 28% to the exports

• Accounts for 53% of the total medical devices manufactured in India

• Home to about 40% of CRO in the country

• Pharma clusters in Ahmedabad, Vadodara, Bharuch and Vapi,

• Medical Devices Park to be operational soon

• Support from the State Government

o Capital Investment Subsidy

o Interest Subsidy

o Assistance for venture capital, quality certification, patent registration,

technology acquisition, etc.

� Expected to grow at a CAGR of about 22% to reach USD 55 billion by 2020

� Exports are expected to reach USD 40 billion by 2020 from USD 15 billion in 2015

• Up to 100% FDI allowed for

pharmaceuticals sector

• Up to 100% FDI allowed for

manufacturing of medical

devices/ equipment

• Manufacturers are free to

produce any drug duly

approved by the Drug

Control Authority

• Conducive patent regime to

attract foreign investors

Advantage GujaratGovernment of India Support

Gujarat has the strongest port infrastructure in the country

1600 km coastline, 23% of India’s waterfront

1 major and 46 non – major ports

Gujarat ports handle over 40% of India’s cargo

Expected to handle over 550 million MT of cargo and develop a capacity of 850 million MT by 2020

Mundra Port in Gujarat is the largest private port

in India, with a capacity to handle over 180 MMT

of cargo a year

Investment opportunities worth USD 20 billion in Port sector like: setting up of Maritime Cluster(s), development of Port Cities and Maritime University in Gujarat

Proposed initiatives in the maritime sector

Gujarat – Driving the financial inclusion

Banking sector - Opportunity

Limited banking sector penetration, growing middle class and increasing in the disposable income contributing to increased demand for banking services

No. of ATMs per 0.1 million is around 9 as against nearly 120 in Brazil

Pradhan Mantri Jan-Dhan Yojana – Under which 75 million households to be enrolled in banks

Insurance sector - Opportunity

India's insurable population is anticipated to touch 750 million in 2020

Current insurance penetration is about 3.9% as against global figure of about 6.3%

Life insurance industry in India is the biggest in the world and expected to increase by CAGR 12% in the next

5 years

Insurance market is expected to quadruple in size over the next 10 years from its current size of USD 60

billion.

Government Support

•49% FDI allowed in insurance

•FIIs, FPIs, QFIs permitted to invest up to sectorial limit of 74% in private banks

Landmark projects - Gujarat’s GIFT City

Multi-Services SEZ with India’s 1st operational

International Financial Services Centre (IFSC)

Foreign firms can raise capital in foreign currency by

issuing and listing their shares on stock exchanges within

the IFSC

Firms can undertake offshore transaction in the field of

Banking, Insurance & Capital Markets

Offices can be set up at cost effective rate with locational

advantage and modern infrastructure

110 Buildings

2 Landmark

Buildings (Height-

above 350 mt)

19 Buildings

(Height- 150 - 300

mt)

73 Buildings

(Height- 100 -140

mt)

2 Schools 200 Beds Hospital Hotels (5000

rooms)

Landmark Developments – Delhi Mumbai Industrial Corridor (DMIC)

Influence Area of DMIC in Gujarat DMIC will be a high impact industrial area within 150

km distance of both sides of Dedicated Freight Corridor

(DFC)

38% of the 1500 km DFC is through Gujarat (565

km) with 6 nodes including Ahmedabad - Dholera

node

Large scale infrastructure projects expected at an

approximate investment of USD 90 billion

• More than 60% of the total investments likely to be

in Gujarat

Estimated employment generation (about 0.8 million)

Landmark Developments – Delhi Mumbai Industrial Corridor (DMIC) (2/2)

SECTOR INVESTMENT (USD MILLION)

Dholera SIR 18,086

Industrial Nodes & SEZs in DMIC Areas 5,158

Road Connectivity 16,666

Rail Connectivity 879

Greenfield International Airport 500

Logistics Hub 800

Power 4,661

Urban Infrastructure including Metro 3,437

Hospitality & Recreation 837

Total USD 51 Billion

PROPOSED INVESTMENTS IN DMIC IN GUJARAT

Landmark Developments – Dholera Special Investment Region (DSIR)

DSIR to be the biggest beneficiary of Delhi Mumbai Industrial Corridor (DMIC) and

Dedicated Freight Corridor (DFC)

DSIR has been declared as National Investment Manufacturing Zone (NIMZ)

DSIR Advantages

Total area of 920 sq.km of which over 550 sq. km developable

area

Fully serviced plots

Smart & Sustainable Social infrastructure

Investment Opportunities

Heavy Engineering

Automobiles & Auto Ancillary

Aerospace & Defense

Aircrafts Maintenance Repair Overhaul (MRO)

Electronics, Hi-tech Technologies

General Manufacturing

Agro & Food Processing

Work for core infrastructure development has

commenced

Landmark Developments – Petroleum, Chemical & Petrochemical Investment Region (PCPIR)

A specifically delineated investment region of 453 sq. km.

planned for the establishment of manufacturing facilities for domestic and export led production of petroleum, chemicals and petrochemicals

Advantages:

Strategically located at a distance of around 400 km north of

Mumbai, with excellent access to entire North West Indian hinterland

A world class 1.1 MMTPA multi-feed cracker in the SEZ

Availability of natural resources and feedstock

Chemical port terminal and chemical storage facility at Dahej

LNG Terminal at Hazira and Dahej

Liquid Fuel Jetty and Solid Cargo Jetty

PCPIR specific infrastructure - effluent disposal pipelines, solid waste

disposal sites

Landmark Developments – Smart Cities Vision

Ahmedabad Efficient & Customized Governance

Surat Futuristic Global City

Vadodara Towards a sustainable and clean city

Dahod A Multi- functional Activity Hub for

Tribal Region

Rajkot Sustainable, Modern, Affordable, Resilient, & Technology- driven

Gandhinagar Smart Capital City

Gujarat: Policy Driven Governance

Upcoming Policies

Electronics Policy 2016

IT Policy 2016

Textile Policy 2013

Industrial Policy 2015

Tourism Policy 2015

Wind Power Policy 2013

Startup Policy 2015

Solar Power Policy 2015

Manufacturing Policy 2013

Agri-Business Policy 2016

General Incentives

Policy

Sports Policy 2015

Rural & Cottage Industries

Policy

Vibrant Gujarat 2015 delegation to Poland

University Meetings (University of Warsaw) Vibrant Gujarat Roadshow

Meetings with Industry Meetings with Ministers and Government Officials

Evolution of Vibrant Gujarat Global Summit

2003 / 20052007

20092011

2013

A

Springboard

for your

Global

Ambitions

2015

Re-

establishing

Gujarat as

an

Investment

Destination

Making

Gujarat as

Preferred

Investment

Destination

Making

Gujarat as

Most

Preferred

Investment

Destination

Showcasing

Gujarat –

The Growth

Engine of

India

Gujarat:

Global

Business

Hub

Focus on Business & Networking

Focus on

•Business & Networking•Providing Gateway to India

•Identifying collective opportunities for growth

Forging Partnerships

Connecting

India to the

World

2017

Vibrant Gujarat 2015: Major Outcomes

Welcome to 8th Vibrant Gujarat Global Summit 2017

Duration 10, 11, 12 and 13 January 2017

Key Attractions

• Inauguration by Hon’ble Prime Minister of India

(10 Jan 2017)

• Global CEO Conclave (10 Jan 2017)

• Nobel Laureates Conference

• Discussion on Innovation, Startups &

Entrepreneurship

• Sectoral theme seminars

• Country Seminars

• MSME Convention

• Global Trade Show and Exhibition

• Valedictory Function

MSMEs

India ScenarioMicro, Small

and Medium Enterprises

Thank you

S Aparna, IAS

Principal Secretary to the Head of GovernmentGovernment of Gujarat

apstocm@Gujarat.gov.inwww.vibrantgujarat.com