THE GLOBAL BUSINESS HUB GUJARAT

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2003

2004

2005

2006

2007

2008

2009

- 200 400 600 800

1,000 1,200 1,400

0%1%2%3%4%5%6%7%8%9%10%

4%

8%

6%

8%9% 9%

7%

Real

GDP

US$

Bill

ion

Real

GDP

Gro

wth

Rat

e

India The Favoured Investment Destination

TRILLION DOLLAR ECONOMY4th largest economy in the world

7% ANNUAL GROWTHduring global economic slowdown

53% GDP FROM SERVICES SECTOR29% from manufacturing sector

8% ANNUAL GROWTH PROJECTIONfor the financial year 2010-11

Vibrant and Sophisticated financial sector

Robust business and legal support system

Sound economic fundamentals

Large and growing domestic market

Versatile, skilled human capital

High quality of life

Source: World Bank, Deutsche Bank, IMF, IBEF

12%

10%9%

9%

3%

Computer Software and Hardware

Telecommunication

Real Estate

Construction

Pharmaceuticals and Chem-icals

India The Favoured Investment Destination

FDI DESTINATION OF CHOICEsecond most favoured destination for FDI

9% ANNUAL GROWTH IN FDIduring global economic slowdown

US$ 19 BILLION FDIinflow during April – November 2009 FD

I Des

tinati

ons o

f th

e W

orld

1. China2. India3. Unites States4. Russia5. Brazil

FDI in Manufacturing Sector (2000-2009)

India ranks at the top on availability of skilled manpower, access to local and international

markets and strong market fundamentals

Source: World Bank, Deutsche Bank, IMF

The Global Business Hub 4

Strategic location

CONNECTED TO MAJOR PORTSof UK, Middle East, Africa, East Asia and Australia

1,600 KM COASTLINEoffers numerous opportunities for port based industries

GATEWAY TO INDIAconnected to landlocked states of India

Source: Industries Commissionerate

The Global Business Hub 5

An indication of Gujarat’s strong economy

INDIA’S LARGEST PRODUCERof drugs, chemicals and petrochemicals

WORLD’S LARGEST CENTREfor polished diamonds

WORLD’S LARGEST PRODUCERof psyllium husk, fennel seeds and Castor

WORLD’S LARGESTgrass root petroleum refinery

INDIA’S LARGEST PRODUCERof Salt, Soda ash, and Marine products

Exports

Fixed capital investment

Value of output

Net Manufacturing value

No. of factories

Geographical area

Population

22%

17%

16%

12%

10%

6%

5%

Gujarat's share in India

Source: Industries Commissionerate

The Global Business Hub 6

An indication of Gujarat’s strong economy

INDIA’S FIRST STATEto enter Carbon Trading Agreement with World Bank

INDIA’S FIRST LNG TERMINALSat Hazira and Dahej

INDIA’S FIRST CHEMICAL PORTat Dahej

INDIA’S ONLY STATEto have a state wide integrated gas grid

INDIA’S LARGESTcopper smelter

Source: Industries Commissionerate

The Global Business Hub 7

An indication of Gujarat’s strong economy GROSS DOMESTIC STATE PRODUCTUS$ 75 billion

ANNUAL GROWTH RATE10.4% in last five years

POPULATION58 million

PER CAPITA INCOMEUS$ 1,094URBANISATION37.4%

Contribution of Gujarat to India

Source: Industries Commissionerate

HIGHLY INDUSTRIALISED STATEwith over 39% of GSDP contributed by secondary sector

Deustche Bank Research

Gujarat Ranks 1st in the

“Regional Scoring Tool” among 27 states in India.

“Gujarat offers the most favorable outlook for the growth of demand for infrastructure projects” with the highest score of 28 out of the maximum possible score of 33. Deustche Bank Research, Nov 2007

The Global Business Hub 9

State with the large number of airports and ports

The Sardar Sarovar Narmada river linkage project, to create continuous water supply

throughout the state

The only Indian state with an integrated

state-wide Gas Grid

A power sufficient state with one of the highest per capita power consumption

Excellent road and rail network.

High Tele-density and excellent internet connectivity

Robust Infrastructure

The Global Business Hub 10

World class institutions of higher learning

Source: Socio-Economic Review, Gujarat State 2009-10

An Education

Hub

The Global Business Hub 11

Human Capital

Source: Socio-Economic Review, Gujarat State 2009-10

More than 30,000 Engineering and 45,000 diploma engineering seats available

More than 900 higher education institutions in the state for quality manpower

More than 500,000 students enrolled in higher education

The Global Business Hub 12

Development of integrated industrial regions

Source: Industries commissionerate

12 Special Investment Regions of more than 100 sq km each being planned

1 Petrochemical and Petroleum Investment Region, 60 Special Economic Zones and existing 200 industrial areas, creating opportunities across sectors

38% of the planned Delhi Mumbai Industrial Corridor route is through Gujarat

Development of new industrialareas for agro parks, tourism and recreation, and information technology

Phase 1• 83

product clusters

Phase 2• 257

Industrial

• estates

Phase 3 - SEZ• Multi

product• Single

product• Multi

Service (IT/ITES)

Phase 4 - Large scale developments• Delhi

Mumbai Industrial Corridor

• Special investment regions

• Logistics parks

• Theme towns

Mumbai

DELHI-MUMBAI INDUSTRIAL CORRIDOR (DMIC)

The Potential & Progress in Gujarat

A Global Manufacturing and Trading Hub “ the engine for economic resurgence of the country”

• Supported by world class infrastructure

• And enabling policy framework

Project Goals• Double the employment potential in five years

(14.87% CAGR)• Triple industrial output in five years

(24.57% CAGR) • Quadruple exports from the region in five years

(31.95% CAGR)Infrastructure will play a major part in this jump…

Vision for DMIC

Length of western DFC: 1483-km Distribution of DFC in six States

•Uttar Pradesh-22 km (1.5%)

•NCR of Delhi- 22 km (1.5%)

•Haryana- 148 km (10%)•Rajasthan- 578 km (39%)•Gujarat- 565 km (38%)•Maharashtra- 148 km (10%)

Later, some areas of MP have also been included

Haryana

Rajasthan

Gujarat

Maharashtra

Madhya Pradesh

Punjab

Andhra Pradesh

Karnataka

Uttar Pradesh

UttaranchalPakistan

Arabian Sea

DadriDelhi

J.N.Port

End TerminalsDFC Alignment

Alignment of Dedicated Freight Corridor

DMIC: a high impact industrial area

within 150 km distance on both

side of DFC

Area under Influence- 14% &

Population- 17% of the Country

Total Population: 173.4 Million

Total Workers: 68.36 Million

Total 82 Districts of Six States within

the Influence Area (excluding

MP)

24 industrial nodes have been

proposed along the DMIC

Delhi-Mumbai Industrial Corridor (DMIC)

Haryana

Rajasthan

Gujarat

Maharashtra

Madhya Pradesh

Uttar Pradesh

Uttaranchal

Arabian Sea

Dadri

J.N.Port

End TerminalsDFC Alignment

DFC- 565 km (38%) 62% of Total Area of Gujarat 18 out of 26 Districts affected 74% of Population of the State

(37.3 Million) 15.7 Million Workers of State Major Cities Above 1 Million:

Ahmedabad, Surat, Vadodara, City with 0.5-1 Million: Bhavnagar

Note: As per Census-2001

DMIC Influence Area in GujaratDadri

J.N.Port

Daman

Surat

Rajkot

Ahmedabad

Vadodara

Mahesana `

`End TerminalsDFC Alignment

Cities/ Urban Agglomerations

Diu

11

12

16

1314

15

•Node-11: Palanpur-Mahesana Industrial Area•Node-12: Ahmedabad-Dholera Investment Region•Node-13: Vadodara- Bharuch Industrial Area•Node-14: Bharuch-Dahej Investment Region•Node-15: Surat-Navsari Industrial Area•Node-16: Valsad- Umbergaon Industrial Area

DMIC: Proposed Industrial Nodes in Gujarat

Legal frame work enacted- The SIR Act, 2009 Dholera SIR notified for 22 villages, for total 879 Sq. Kms

area. 26000 hectares of Government lands reserved within SIR

Area for the purpose Pre-feasibility study and master plan for Dholera SIR

completed by Ms Helcrow of UK. Regional Development Authority (RDA) constituted Budgetary support of Rs. Six crores to RDA Seismic Microzonation study for entire area is in advance

stage by Institute of Seismological Research Water vulnerability study taken up through GSDMA. Environment Impact Study is under way for the SIR

Dholera SIR: Planning & Progress…

SIR: Major indicators

• Land uses well integrated Polycentric–multi centres Conservation of villages Development & Value add in

agricultural lands Protection of the CRZ Good access: road & rail Expressway through road Separation of industrial & city

traffic Quality internal public

transport - LRT New water fronts/bodies Flood protection & fresh

water storage Flexibility – To provide the

increase in industrial area

DMIC & SIR: The scale of the Vision

No. Area (In Hectare)

GIDC Estates(Functional)

180 26,077

SEZs approved 60 25,198

Shenzhen, China 1 32,700

Dholera SIR 1 50,000

Apart from big size, a SIR has to be of Global standards

Dholera SIR: a life time Opportunity• To build the industrial parks, townships, knowledge cities• In building its infrastructure: road, rail, water, sanitation • To build hospitals, tourism, hospitality and recreation complexes• Set up the industries, metro rail system & international airport• Develop multi-modal transportation & logistics hub

Dholera SIR is just one of many such opportunities…

and we want to do it mostly on the PPP way…

– For storage, handling, transportation and other value added services.

– To focus on transportation of goods by rail.

– Provision of rail-linked freight terminal.

– Consolidation of traffic.– Warehousing of goods,

packaging, labeling.– Study completed by the RITES– Steps being taken for making

the Logistics parks

Gandhidham

Dahej

Palanpur

Hazira

Logistics Parks along the DMIC/DFC

Ahmedabad

Mundra

Dahej

Pipiavav

Kandla

Hazira

DFC

Existing Rail LineTo D

elhi

To Mum

bai

Gujarat offers Port Connectivity to DFC

Ahmedabad

Mahesana

Palanpur

Bharuch

Surat

Petroleum Chemical & Petrochemical Investment Region (PCPIR)

453 SQ. KMof brownfield area in coastal belt of Gulf of KhambhatVICINITYof chemical clusters of Jhagadia, Ankleshwar and Panoli

ONSITE CHEMICAL AND LNG TERMINALat Dahej

DAHEJ SEZ LTDpromoted by GIDC and ONGC to develop SEZ in PCPIR

ANCHOR TENANTONGC Petro Additions Limited

PCPIR is a specifically delineated investment region planned for the establishment of manufacturing facilities for domestic and export led production of petroleum, chemicals

and petrochemicalsThe Global Business Hub 25

Source: Industries Commissionerate

Proposed investment USD 20 billion

Proposed employment of almost0.8 million people

Petroleum Chemical & Petrochemical Investment Region (PCPIR)

The Global Business Hub

Source: Industries Commissionerate

Accessibility to the Railway

Network & Ports

Accessibility to Expressway, NH &

SHs and Major District Roads

Linking existing Industrial Growth

Centers

Low level of Human Settlements

Accessibility to Water Supply &

Effluent Network

Substantial land acquired

• Concentration of Petroleum ,Chemical and Petrochemical estates around PCPIR

• 1.1 MMTPA multi-feed cracker, being developed by OPaL

• All infrastructure - road, rail, port, power, gas, water - in place, with planned up-gradation

• Chemical Port and Storage Facility • LNG terminal• PCPIR specific infrastructure such as

effluent disposal pipelines, solid waste disposal sites

Investment Already Made & Committed USD 13.72 bn

Infrastructure Development USD 628 mn

Dahej SEZ Limited 1,719 hectare multi-product SEZ, part of PCPIR, was placed amongst world’s top 25 SEZs by Financial times

Large chemical & petrochemical

companies existing

Fulfillment of PCPIR Policy contiguity, minimum area,

port connectivity

27

Gujarat International Finance Tec-City (GIFT)

ONE STOP DESTINATIONfor global financial services and IT industry500 ACRESland being developed by Gujarat International Finance Tec-City Company Limited

50:50 JOINT VENTUREbetween Gujarat Urban Development Company Limited (GUDCL) and Infrastructure Leasing & Financial Services (IL&FS)

143 MILLION SQ. FTof built-up area in the master plan

12 KMfrom Ahmedabad International Airport

8 KMfrom capital city of Gandhinagar Gujarat International Finance Tec-City (GIFT) project

intends to capture 6-8% of Indian financial market and create about 500,000 direct and equal number of indirect jobs

The Global Business Hub 27

Source: Industries Commissionerate

28

Special Economic Zonesproposed investment of USD 60 billion

Total area of about 30,000 hectares under SEZs Proposed employment of almost2 million people

Multi Product SEZ 12Electronics and IT / ITES 17Engineering 10Pharmaceuticals 4Chemicals 4Apparel and Textiles 4Power 1Biotech 1Gems and Jewellery 1Handicrafts and Artisan 1 Non Conventional Energy

1 Ceramic SEZ (GIDC) 1 Multi Services (GIFT) 1FTZW 1Port Multi Product SEZ 1

The Global Business Hub 28

Source: Industries Commissionerate

29

Opportunities: Metro Rail System between Gandhinagar and Ahmedabad

The Global Business Hub 29

Source: Industries Commissionerate

An SPV named ‘Metro link-Express for Gandhinagar & Ahmedabad (MEGA) Co. Ltd.’ as a Project Development

Agency incorporated recently

Phase 1 Alignment (approx. 60 km)Akshardham (Gandhinagar) to APMC

(Vasna) - N-S Corridor (32.65 km)Kalupur Railway Station (Ahmedabad) to Thaltej - E-W Corridor (10.90 km)Ahmedabad Airport – Koba Circle –

GIFT City (approx 17 km)

Phase 2 AlignmentVasna-Sarkhej-Indroda (via S.G.

Highway)Sarkhej to Dholera

30

Opportunities: Sabarmati River Front Development

The Global Business Hub 30

Source: Industries Commissionerate

Sabarmati River Front Development Corporation Limited (SRFDCL) – SPV formed to execute the

project

Work in progress on final phase of development – 11 km on either bank

Total infrastructure investment planned – USD 200 million

Investment opportunities worth USD 3 billionPrivate sector investments envisaged in:

(a) Development of commercial and residential buildings

(b) Development, operation and maintenance of riverfront parks and promenades

(c) Recreational facilities like boating, water sports(d) Development of urban neighbourhood

(e) Water transportation modes(f) Development of hotels, hospitals and institutional

buildings

The Global Business Hub 31

High Quality of Life

VARIOUS URBAN DEVELOPMENT INITIATIVESto ensure high quality livingWASHINGTON SUSTAINABLE TRANSPORT AWARD to Bus Rapid Transport System of Ahmedabad

SABARMATI RIVER FRONT DEVELOPMENT to create quality space for cultural and recreational activities

WIDE ARRAY OF CHOICES FOR TOURISTS heritage monuments, archeological sites , wild life and beaches

The Global Business Hub 32

Vision for FutureBlueprint for Infrastructure in Gujarat (BIG 2020)

Gujarat has already envisioned a

future and documented a vision – BIG

2020. The new vision comprises

investments of US $ 222 billion in

various sectors like –

• Dholera SIR and other SIRS,

industrial nodes, logistics parks,

industrial parks & SEZs within DMIC

and outside (US $ 34 billion)• Roads, ports, railway, airports (US $

45 billion)• Urban infrastructure, urban

transportation, water supply (US $

29 billion)• Tourism (US $ 10 billion)

Power - power generation capacity at

31,000 MWUS $ 45 billion

Gas including coal gasification

US $ 25 billion

GIFT - to be developed as an International Financial Services

Centre

Metro rail transport and high speed railUS $ 19 billion

Kalpsar project across Gulf of Khambat and

Irrigation projectsUS $ 24 billion

Urban development -Development of new

townships and twin cities around existing ones

GIDB“The most admired State Level PPP Agency in India”

KPMG Award-2008

“Best State in Public Private Partnership” – 2009

Jointly organised by IIFCL, IL&FS, KMPG & Business Standard

“Most Admired Infrastructure Facilitator-State Level”

KPMG-Infrastructure Today-2009

• First institutional arrangement in India for PPP• Front runner State in Privatization of Infrastructure• Private ports and railway lines, BOT roads, bridges • Longest coast line in India-1600 km with one • Major and several Minor Ports in private sector.• Some air strips being developed in private sector• Also, PPP moves in social sector• The DMIC and SIR projects take the lead • Project Structuring has been started for the SIR

projects

Gujarat leads the PPP way…

In 1999, the Gujarat Infrastructure Development (GID) Act was enacted which gives legal framework & roadmap for PPP

GID Act proclaims ‘competitive bids’ as the preferred mode for developer selection and lays down detailed guidelines

However, ‘Swiss Challenge Route’ also recognised to take benefits of innovative ideas and unsolicited projects

In 2006, project award through Direct Negotiation added.

A project can thus be awarded to a developer through:

Competitive bidding (section-9 GID Act) Comparative bids (section-10 GID Act) Direct negotiation (section-10A GID Act)

three routes for PPP… Gujarat Infrastructure Development Act-

1999

Vibrant Gujarat Global Investors’ Summit 2009

PARTNER COUNTRYJapan

EXHIBITION PARTICIPATION16 countries,232 exhibitors

SEMINARS12 sector-specific seminars

PARTICIPANTSOver 20,000 registered delegates

COUNTRIES PARTICIPATED47

FOREIGN DELEGATESOver 600

The Global Business Hub 36

Vibrant Gujarat 2011 – Global Summit• Vibrant Gujarat Summit events will begin from 10th January 2011• Canada and Japan are partner countries• To have a series of intellectual discussions through discussion forums and panel discussions on 10 th and

11th January 2011Discussion Forums (10/11th January 2011)• Good Governance• Emerging Geographies• Environment Technologies

and Green Energy

Networking events• B2B Meetings• B2G Meetings• Export Pavilions• Catalogue Shows• Sector specific dinners• CEO dinner

Panel Discussions (10/11th January 2011)• Rurbanisation• Youth Potential, knowledge

and skill development• Inclusive Growth

Conventions and Seminars• Small and Medium Enterprises

convention• 7 sector specific seminars

during December 2010• 7 sector specific seminars on

12th /13th January 2011• IIT conclave • YPO convention

The Global Business Hub 37

iNDEXTbINDUSTRIAL EXTENSION BUREAU

(A GOVT. OF GUJARAT ORGANISATION)

ISO 9001:2008 Certified

www.vibrantgujarat.com

Knowledge Partner

PwCvibrant.gujarat.2011@in.pwc.com

Relationship Partner National Partner

Register at

Be the change that you would like to see in the world- Mahatma Gandhi

Mahatma MandirGandhinagar

The Global Business Hub 39

Natural Resources

Gujarat has got large natural reserves of oil and gas. It has a reserve of 725 million tonnes of crude oil and 1,055 billion cubic meters of natural gas

Gujarat produces the largest volume of crude oil (5.9 million tonnes) in India

It is the second largest producer of onshore natural gas (2.6 billion cubic metres) in India

A mineral rich state both in terms of capacity reserves and production

Has a total mineral reserve of more than 19,000 Million tonnes

One of the highest reserves of bauxite, limestone and clay deposits in India

LimestoneBauxiteLigniteDolomiteSilica SandBase metalChalkChina clay FluorsparFireclay GraniteManganeseMarbleQuartz Wollastonite

Bentonite

Source: Commissionerate of Geology and Mines

The Global Business Hub 40

Competitive Destination

Source: Industries commissionerate

Gujarat has one of the lowest levels of minimum wage which is around USD 120/month, making Gujarat extremely competitive.

Taxes in India are broadly • Value added tax- 12.5 %• Corporate tax- 33.22 %

(42.23% for foreign entities)

• Personal income tax-• No tax on annual

income below USD 3,200.

• Rate of 10-30 % based on income slab.

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Competitive wages ( USD/month)

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0%

10%

20%30%

40%

50%

60% Tax implication

Corporate tax Minimum income taxMaximum income tax VAT/GST

Gujarat is home to the production of the world’s cheapest,

international quality & safe EU3 compliant car-

Nano

The Global Business Hub 41

Robust Infrastructure

Transpo

rt

Well connected by road, rail and air ways.12 domestic airports and 1 international airport (Ahmedabad)Extensive railway network - 5,309 km.Road network - 74,038 km (National Highways - 2,867 km, State Highways (18,702 km.), Major District Roads- 20,707 km

Ports

1,600 Km coastline 1 Major Port at Kandla and 41 minor ports – Kandla port handled 72 million MT and minor ports handled 150 million MT of cargo in 2008-09. Cost efficient transportation of natural gas, crude oil and petroleum products from Middle East and Europe

The Global Business Hub 42

Robust Infrastructure

Gas

Only state to have an Integrated State- Wide Gas Grid, network of over 2,200 kmOnly state in the country to have two LNG import terminalsLeads all other states in the country in terms of gas pipeline for industrial use, city gas distribution and LNG re-gassification infrastructure

Telecom

High tele-density in GujaratMany IT Parks Gujarat State wide Area Network being implemented for the state governmentExcellent internet connectivity

Electricity

Introduced Solar Power Policy 2009Installed capacity – 11,636 MW (October 2009)Electricity generated – 68,962 MUPer capita consumption of electricity – 1,446 units Projected to become a power surplus state by 2012 assuring high quality power supply

The Global Business Hub 43

An indication of Gujarat’s strong economy

HIGHLY INDUSTRIALISED STATEwith over 39% of GSDP contributed by secondary sector

SUSTAINED INVESTOR CONFIDENCEhighest number of proposals in India

BEST STATE FOR INVESTMENTcreating value for investors and approved by financial institutions

Source: Industries Commissionerate