Welcome to Gujarat

1. Welcome to Gujarat

2. Flow of Thoughts India is an emerging economic super powerGujarat: Global business hub Highlights of Gujarat’s developmentOpportunities for collaboration with GujaratVibrant Gujarat:2013

3. Vibrant India

4. India – Preferred Investment Destination Section 1 – India - Preferred investment destination 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) A.T. Kearney Survey CAGR Exports 14% CAGR Import 14% Growth Decline No Change India is one of the major G-20 economies  17th largest exporter and 11th largest importer in the world Main Export Partners China 8% UAE 12% Hong Kong 4% US 13% Main Import Partners 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 2 China 12% UAE 7% Australia 5% US 6% Saudi Arabia 6%

5. India – The Growth Story % Share of Global GDP (PPP) TRILLION $ ECONOMY 4th largest economy in the world in PPP terms 8.6 % ANNUAL GROWTH PROJECTION 7% ANNUAL GROWTH during global economic slowdown for the financial year 2010-11 GDP Growth Rate (%) *Estimated The Global Business Hub

6. Booming domestic demand

7. Advantage India World's largest democracy with 1.2 billion people Land of abundant natural resources and diverse climatic conditions • Strong Market Fundamentals • Enabling business • environment with greater • global participation Impetus on Infrastructure Development Access to technology as a result of the IT revolution • Progressive simplification and rationalization of direct and indirect tax structures • Competitively priced skilled labour

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

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

12. GUJARAT Gujarat – leveraging strategic location London Newark Kuwait Doha Dubai Muskat Sharjah Singapore Gujarat has a 1600 km long coastline having 42 ports – the highest number of ports in any Indian state Sea-based trade destinations – West Europe, Middle East, Asia Destination of growing potential

13. 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 km Power-surplus state with uninterrupted power supply in every town and village

14. Gujarat Ports Kandla Jakhau Several firsts in India • Private port at Pipavav in 1992 • Country’s only Liquid Chemical Port Terminal at Dahej (PPP) Mundra Navlakhi Jamnagar Khambhat Okha Sikka Dholera Positra Bhavnagar Dahej Mithivirdi Porbandar Mahuva Hazira Sutrapada Pipavav Simar Jafrabad Maroli • 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 Source : Indian Port Association

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.

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 Ahmedabad voted 3rd fastest growing city of the world by Forbes • 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

19. Gujarat Social developmentHuman 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 19

20. Gujarat – Industry Responsive human capital • 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 CAGR 31% 15% 33% 31% 26% Intake has been doubled in the last 3 years 200,000 Industry responsive manpower through 300 skill development centres by 2014 125,000Industryresponsive manpower through 250 ITIs every year Source: Directorate of Employment & Training, Gujarat

21. Gujarat – a new paradigm for industrial growth Current phase – involving Integrated development of large areas like SIR, PCPIR and DMIC – is poised to transform the industrial scenario in the state • Integrated large area developments • Special Investment Regions • (> 100 sq. km.) • Industrial Areas • (50-100 sq. km.) • Delhi Mumbai Industrial Corridor SEZs (55) Level of Integration • Multi product • Chemical • Textile • Pharma • IT / ITeS • Electronics • Engineering • Biotech • Gems & Jewellery 202 Industrial Estates 83 product clusters Phase IV Phase I Phase II Phase III Phase of industrial development

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

23. 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

24. 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

26. Gujarat International Finance Tec-City (GIFT) India’s first SEZ for global Financial Services – GIFT emerges as a forerunner of new opportunities in Gujarat • 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

27. Uttaranchal Haryana Dadri Uttar Pradesh Rajasthan Madhya Pradesh Gujarat Maharashtra Arabian Sea J.N.Port End Terminals DFC Alignment Exciting opportunities: Delhi Mumbai Industrial Corridor (DMIC) • 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

28. Dholera Special Investment Region (DSIR)A world class development spread over 900 sq. km. • 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!! Source: GIDB, GoG

29. Clean Energy, responsible development model, solar panels Development of distributed gas based power combined with non conventional sources Investment requirement Non- Conventional power projects under private sector Tidal and geothermal projects first at a pilot scale, and then at a commercial scale Development of wind-solar hybrid installations and biomass projects Development of large scale solar parks and canal-top solar projects • Offshore wind projects development Development of solar manufacturing capacities Development of projects under solar rooftop programme (Bhavnagar, Surat, Rajkot, Mehsana) Source: Energy and Petrochemicals Department, Government of Gujarat

30. 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

31. Vibrant Gujarat

32. Vibrant Gujarat 2011 Summit • Highlights of Vibrant Gujarat 2011 Summit

33. Vibrant Gujarat- A journey so farThe journey from “investors’ summit” to “global business hub” A paradigm shift to an ideal platform for Knowledge, Social and Business Transformation 2013 The Global Business Hub 2011 The Global Business Hub 2009 Showcasing Gujarat – The Growth Engine of India 2007 2005 2003 Making Gujarat as Most Preferred Investment Destination Making Gujarat as Preferred Investment Destination Re-establishing Gujarat as Investment Destination

34. Vibrant Gujarat 2011 Highlights of Vibrant Gujarat Summit 2011

35. VG 2013 - Summit Opportunity for Netherlands

36. Seminars & Conventions during Summit

37. VG 2013 – Summit For more details about submit please visit • http://www.vibrantgujarat.com/ For investment inquiry ,please visit www.indextb.com/investment-inquiry/investment-inquiry.aspx

38. About iNDEXTb

39. 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 • .

40. Investment facilitation Portal Detailed information on investing in Gujarat

41. Welcome to Vibrant Gujarat 2013 Thank you! Partner countries - Japan and Canada Visit us at www.vibrantgujarat.com

42. Help in understanding Tax Framework Corporate Income Tax Indirect Tax Dividends Distribution Tax 16.22% Business profits Domestic Company 32.44% (net basis) Foreign Company 42.02% (net basis) Interest 21.01% 10.51% (gross basis) 42.02% (net basis) Royalty/FTS 42.02% (net basis) Short term Capital Gains* Long term 21.01% (net basis) Branch profit tax** NIL 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 • * 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