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Partners in Progress

Destination Gujarat

GUJARAT NRE

and many more....

Knowledge Partner

Exhibition Partner

Relationship Partner

APCO
worldwide

National Partner

Confederation of Indian Industry

Head Office: Block No. 18, 2nd Floor, Udyog Bhavan, GH-4, Sector 11, Gandhinagar 382 010 Gujarat, INDIA
Phone: +91-79-23250492/93 Fax: +91-79-23250490
www.indextb.com, www.ic.gujarat.gov.in E-mail : indextb@indextb.com
Regional Office: A-6, State Emporia Building, Baba Kharak Singh Marg, New Delhi 110 001
Fax: +91-11-23747002/23360049

E-mail: indextbnd@indextb.com

For more details and online registration, log on to www.vibrantgujarat.com or scan the QR code
Partner Country

Partner Organisations

What they say about India...

Enjoying a consistently high growth over the


last decade, Gujarat is India's most
industrialised and urbanised economy
powering the country's growth story.
Gujarat offers wide opportunities even in
times of a shaky global economy, driven by
its entrepreneurial spirit, strategic maritime
location, next-generation infrastructure,
stable transparent governance and longterm vision.
Through the Vibrant Gujarat Summits, we
welcome a multitude of stakeholders from
all corners of the world - to leverage upon
these strengths, build a brighter future for
themselves, and in turn, create a better world
to live in. With its enriching quality of life and
an underlying spirit of doing better and
working together, Gujarat invites you to the
sixth Vibrant Gujarat Global Summit!

Welcome to Vibrant Gujarat.


Narendra Modi
Chief Minister, Gujarat

India is a place valuable to me


for both business and personal
reasons.
Bill Gates
CHAIRMAN
MICROSOFT

I do not consider India as an


emerging market. I should have
been here much sooner.
Warren Buffett
CEO
BERKSHIRE HATHAWAY

Businesses should shift their


trading efforts away from Europe
towards emerging markets like
Brazil, China and India.

Germany has a major


interest in accompanying
India along its exciting and
extremely successful way.

John Cridland
DIRECTOR-GENERAL
CONFEDERATION OF BRITISH
INDUSTRY

Angela Merkel
CHANCELLOR OF GERMANY

India has a very impressive


GDP, huge population, fairly
educated work force, and for
these reasons there is an influx
of international investments into
the country.

You can't be global without


being in India - with its large
number of highly skilled, motivated
and knowledgeable people

Sungwon Song
SENIOR VICE PRESIDENT
SAMSUNG

Tom Enders
CEO AND PRESIDENT
AIRBUS

01

India - Preferred Investment Destination


Trade Scenario, USD billion
400

CAGR
Exports
14%

300

CAGR
Imports
14%

1.73

India

200

1.6

Brazil

150
100

US

1.52

Germany

1.52

15.0%

9.5%

10.0%

9.6%

9.3%

1990-91

1994-95

2000-01

Export

2004-05

2010-11

Import

India is one of the


major G-20 economies:
the 17th largest exporter and
11th largest importer in the world

8.6%

8.0%

6.8%

0.0%
2006

2007

2008

2009

2010

2011-12
(A)

16%

2010-11
(Q)

17%

2009-10

17%

2008-09

18%

26%

2007-08

19%

25%

1.5

FDI - Top Sectors


Automobile
industry
6%
Power
7%
Construction
activities
10%

Metallurgical Pharmaceuticals
industries
5%
5%

Petroleum
and natural
gas
3%

Services
30%

25%

59%

US
13%

UAE
12%

China
8%

Hong Kong
4%

Computer software
and hardware
11%

Growing domestic consumer base

26%
26%

20%
-

58%
57%

Telecommunications
12%

54%
400

600

800

1,000

1,200

USD, billion
Agriculture

Industry

Services

China
12%

UAE Saudi Arabia US


7%
6%
6%

Australia
5%

15% of the worlds population


550 million people under 25 years
Projected change in demographic composition

40%

100%

35%

The 2 preferred global


investment destination
(World Investment Prospects Survey
2010-2012 by UNCTAD)

1971

USD 254 billion of FDI inflows


between April 2000 and
March 2012

1981

1991

2001

2011

1911

1921

90%

1931

1941

30%
25%
20%

1961

56%

26%
200

Main Import Partners

56%

Large, young human capital base

Rapid urbanization
fostering a fast growing
consumer base

nd

2006-07

02

0.5

No Change

Real estate
11%

2011

Sectors contribution to GDP

Visionary
Strategic
Direction

Growth

Main Export Partners

5.0%

Investor-friendly
Government
Initiatives

Decline

GDP growth rate

Progressive
Economic
Reforms

Strong
Democracy

1.87

China

350

50

One of the fastest growing


economies in the world (GDP
growth rate 8.6% in 2011)

Democratic set up and strong economic reforms

A.T. Kearney Survey

250

Recorded the highest growth


rates in the mid-2000s

FDI Confidence Index, 2012

1951

15%
10%

85%

80%

75%

70%

5%
65%

23%
Urban share of population

9th largest economy in the world


by nominal GDP and
rd
3 largest by purchasing
power parity (PPP)

Growth Enablers

80%
60%

25%

40%

27%

20%

35%

64%
64%

12%
11%

2021

9%

2016

57%

8%

2001

15-59

60 and above

64%

0%

14 and below

2026

Rural share of population

03

Advantage India

VIBRANT GUJARAT
What they say about Gujarat...

World's largest
dem
democracy with
1.2 billion people

Land of abundant
n
at
natural
resources
and diverse
climatic conditions

Gujarats outstanding infrastructure coupled


with its best industrial policies makes it the
most desirable investment destination in
India

Gujarat governments professionalism in its


relations with business is what sets it apart.
Investors appreciate the Gujarat governments
clarity of policy, speed of decision making and
solution-oriented approach

Heizo Takenaka
Former Minister, Japan

Ratan Tata
Chairman, Tata Group

Enabling business
en
environment
wit
with greater global
participation

Str
Strong Market
Fu
Fundamentals

Today when the world looks at India to drive


world's growth, India looks at Gujarat to drive
India's growth

Gujarat has a strong and dynamic leader. It is


the most advanced state of India and is sure to
lead the country in future

Chanda Kochhar
MD and CEO, ICICI Bank

Hafiz Rehman
Director General, Asian Development Bank

Effective governance and administration,


business- friendly policies, superior core
knowledge infrastructure and an entrepreneurial
culture combine to make Gujarat the premier
business destination in India"

There is a new-found confidence in Gujarat


under the leadership of Narendra Modi. I am
convinced that his dynamism and passion will
help Gujarat earn not only a place of pride in
India, but in the world

Ron Somers
President, US-India Business Council

Mukesh Ambani
CMD, Reliance Industries Limited

Ford India selected Gujarat because of its probusiness environment, infrastructure, access to
ports in north-western India, skilled workforce
and the geographic location

Gujarat is one of the progressive and forward


looking state with impressive infrastructure
and highly skilled workforce also The able
government gave us positive signal and
confidence to invest in the state

Access to
tec
technology as
a result of the
IT revolution
Progressive
simplification and
rati
rationalization of
direct and indirect
tax structures
04

Impetus on
Infra
Infrastructure
D
Development

Competitively
pric
priced skilled
labour

Michael Boneham
President & MD, Ford India

Shinzo Nakanishi
M.D., Maruti Suzuki India Ltd.

05

Leveraging Strategic Location

Economic Powerhouse

Gujarat has a strategic location it is well connected to the major cities of


the world both by air and sea routes
Gujarat has direct international flight connectivity to cities
across Europe, Middle East, East Asia and America

Gujarat

Gujarat has a coastline of 1600 km with 42 ports connecting


to major sea-based trade routes and trade centres like
Middle East, West Europe, Asia and upcoming destinations
on the African Continent
Gujarat acts as a gateway to landlocked states of India
connecting to them by road, rail and air thereby providing
a boost to trading opportunities

7.5%

17%

30%

9.5%

Gujarats
contribution to
Indias GDP

Gujarats
contribution to
Indias industrial
output

Gujarats share
in Indias
stock market
capitalization

Gujarats
share in Indias
workforce

Gujarats contribution to Indias manufacturing sector


London

98%

Newark
Kuwait
Doha
India
Dubai
Muscat
Sharjah

78%
51%

Singapore

31%

53%

62%

80%

65%

35%

10%
Mineral
production

06

Sea-based trade destinations West Europe, Middle East, Asia


Destination of growing potential Africa

Textiles

Pharmaceuticals

Chemicals

Onshore Crude Petro-Chemicals Plastic industry Salt Production


Oil

Diamond
processing

Soda Ash

07

Strong Fundamentals

Strong Fundamentals

Gujarat contributes around 25% to Indias overall exports and


37% of total Indian port cargo is handled by Gujarats ports (2011-12)

Gujarat has been ranked 1st as per the


Economic Freedom Rankings for the States of India, 2012 report

Double digit growth rate with Gross State


Domestic Product of USD 75 billion
(2010-11) growing at a five year average of

Growth in agricultural output in


the state over the last 10 years

A highly industrialized state - Gross State


Domestic Product contribution from
manufacturing sector

Gujarats Degree of Openness


(ratio of exports from state to
Gross State Domestic Product)

08

A state with a population of 60 million and


one of the highest urbanization levels

10%

53%

11%

28%

Increase in seat availability in


technical institutions over last 3 years

A state with a high and


growing literacy rate

43%

100%

79%

A state with one of the highest share in


investments under implemented projects
in India

26%
09

Robust Infrastructure
Excellent road and rail
connectivity - Bus Rapid
Transit, METRO and other
development projects in
various urban centres

The only Indian state to


have a state-wide
integrated gas grid of
2,500 km and 2 LNG
terminals

Innovative Human Capital


High quality
healthcare
facilities available
throughout
the state

High quality
human resource
available for
all sectors

Increase in the number of seats in technical education


60,000

The state with one of


the largest wireless
telecom markets in
India (6.02% of total
active subscriber base)
and excellent
broadband
connectivity

The power surplus


state with an
uninterrupted power
supply in every town
and village

10

Excellent air
connectivity 16 domestic airports
and 1 international
airport

A state with the


highest number of
ports having 41 minor
and 1 major port with
connectivity across all
the global ports

31%

15%

33%

31%

26%

CAGR

50,000

Land of
entrepreneurs
spread across
the globe

40,000
30,000

2007-08
2011-12

20,000
10,000

Government
schemes
for vocational
training in
PPP mode

Home to world
renowned
institutes
in management,
engineering
and design

Engg
degree

Pharmacy
degree

MBA

MCA

Engg
diploma
(Xth std.)

200,000 industry responsive manpower through 300 Skill


Development Centres by 2014
125,000 industry responsive manpower through 250 ITIs every year

11

Social Infrastructure

Exciting Tourist Destination

Ahmedabad voted 3rd


fastest growing city of the world by Forbes

Number of tourist arrivals in the state is experiencing strong growth with the
Gujarat tourism sector performing better than the country average

Gujarat is the first state in the country to


successfully implement the Bus Rapid
Transit System (BRTS) in Ahmedabad

Country-wise breakup for


international tourists in Gujarat

Total Tourist Arrivals

Total tourist arrivals to Gujarat in 2010-11 stood at


approximately 19 million (around 10 million in 2005), thus
witnessing a 85% growth in tourist arrivals.

International Tourist Arrivals grew at a CAGR of


14.74% since 2005. This can be attributed to the growing
prominence of the State as a major business hub.

Domestic tourism primarily led by tourists from within the


State is gradually giving way to tourist arrivals from
other Indian states which stands at almost 22% up
from 19% in 2007.

25
19

20
Million

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

14

15
11

16

17

12

10
5
0
2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11

Total Tourist Arrivals

Projects like Sabarmati River Front


Development are unique to Gujarat with
the aim of creating quality space for
cultural and recreational activities

United
Kingdom, 16%
Others, 47 %

Singapore,
pore, 2%

France, 9%
Japan, 3%

Canada, 3%

Germany,
5%

USA, 9%
Australia, 6 %

International tourism is
increasingly growing in Gujarat

Surat, Vadodara and Rajkot are ranked


amongst the fastest growing cities of India

Highlights of the Tourism Policy 2010


Industry Status to the Tourism sector - this will enable
investors to avail benefits which are extended to other
industries through Industrial Policy 2009
Land Acquisition & Allotment
Concession in Electricity Duty / tariff
Tourism Incentive Package Scheme (TIPS): 2010-2015 is
being proposed by the Government, which shall offer special
incentives

12

Tax holidays on Luxury Tax, VAT on food and beverages,


Entertainment Tax (as and when proposed) and concessions
such as interest subsidy, reduction of Electricity duty and
VAT on natural gas
Modifications in the lending criteria to cover wider tourism
related projects

13

High Industrial Growth

Business Eco-system
FAVOURABLE POLICY
and regulatory environment

The current phase involving integrated development of large areas like SIRs,
PCPIR and DMIC is poised to transform the industrial scenario in the state

SOCIO-ECONOMIC DEVELOPMENT
targeted through Industrial Policy - 2009

Integrated large area


developments
Special Investment Regions
(SIR) (> 100 sq. km.) and
Industrial Areas ( 50-100 sq.
km.)

PROMOTION OF INVESTMENT
and growth through sector policies
SPECIAL INCENTIVES
under special economic zones, special investment
regions and industrial area development

Taxes in India are broadly

LEAST MAN - DAY LOSS


in India

Value added tax- 12.5%


Corporate tax- 32% (42% for
foreign entities)

ENCOURGING PRIVATE PARTICIPATION


through PPP projects

Personal income tax No tax on annual income


below USD 3,600
Rate of 10-30% based on
income bracket.

14

TAXES AT PAR
with other preferred destinations
GLOBAL COST COMPETITIVE
labor force and competitive wage levels

Level of Integration

SEZs
Multi product
Chemical
Textile
202 Industrial
Estates

Pharma
IT / ITeS
Electronics
Engineering
Biotech

83 product
clusters

Gems & Jewellery

Delhi Mumbai Industrial


Corridor (DMIC)
SEZS
GIDC Industrial Estates
Petroleum, Chemicals and
Petrochemicals Investment
Region (PCPIR)
Knowledge corridor
Logistics parks / Industrial
parks (on PPP basis)
Theme towns

Phase I

Phase II

Phase III

Phase IV

Phase of industrial development


15

Impetus to Industries

Futuristic vision for development


Blueprint for Infrastructure in Gujarat:
BIG 2020
Gujarat has envisioned a future and documented a vision - BIG 2020. The new vision comprises
investments of approximately USD 225 billion in various sectors like:

37% of the

Palanpur Mehsana
Industrial Area

planned Delhi

Dholera SIR

Mumbai

Other SIRs , Industrial Nodes, Logistics Parks & SEZs within the Delhi Mumbai Industrial Corridor

Industrial

Industrial Parks

Corridor (DFC

Roads, Ports, Railway, Airport

route) is

Urban Infrastructure , Water Supply

through

Tourism

Gujarat

Vadodara-Ankleshwar
Industrial Area
Ahmedabad Dholera
Investment Region

Bharuch - Dahej
Region Investment
Surat Navsari
Industrial Area
Valsad
Umbergaon
Industrial Area

More than

60% of total
investment is
likely to be in
Gujarat
Proposed Logistic Park

Delhi Mumbai Industrial Corridor (DMIC) will be a high impact industrial area within 150 km distance on both
sides of the Dedicated Freight Corridor (DFC), with an investment potential of USD 90 billion. To be developed as
Global Manufacturing & Trading Hub

16

17

Landmark developments

Landmark developments

Dholera Special Investment Region (DSIR)

Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)

Dholera SIR is developed with a vision to create world class centre of


industrial excellence and economic activity. This was one of the first
SIRs in the state after the SIR Act was passed in Gujarat.

PCPIR is a specifically delineated investment region planned


for the establishment of manufacturing facilities for domestic and export - led
production of petroleum, chemicals and petrochemicals
Spread over 453 sq. km. of brown field area in the coastal belt of Gulf of
Khambhat in Bharuch District

Dholera SIR : Ideally located, widely connected


Total Area: 903 sq. kms: a green field location

In close vicinity of other existing GIDC chemical estates, viz. Jhagadia,


Ankaleshwar, Panoli, and onsite Chemical port terminal & LNG terminal at Dahej

Developable area: 547 sq. kms.


Economic activity area: 377 sq. kms

ONGC Petro Additions Ltd (OPaL) JV company promoted by Oil and Gas
Corporation Ltd. (ONGC) and Gujarat State Petroleum Corporation (GSPC) to act
as anchor tenant

High Access Corridor: City Center, Industrial, Logistic, Knowledge and IT,
Recreation and Sports, Entertainment
World-class infrastructure and connectivity

Dahej SEZ Limited, a joint venture company of ONGC and GIDC, is among the top
25 economic zones in the world (survey by Financial Times)

Central spine express way and Metro Rail to link the SIR with mega cities
Airport and Sea Port in the vicinity

Opportunities in Dholera SIR

To build the
industrial parks,
townships,
knowledge cities

18

To develop basic
infrastructure: road,
rail, hospital, water,
sanitation, tourism,
and hospitality

Set up a
metro rail system
and an
international
airport

Potential for
development as
a multi-modal
transportation hub
due to proximity to
most of the north
Indian States

PCPIR : Unique Selling Proposition

Proximity to mega cities: Ahmedabad, Bhavnagar, Vadodara


Export promotion
measures

Chemical port terminal


and chemical storage
facility at Dahej

Well - established
infrastructure

Proposed SEZ by GIDC


at Dahej & Jhagadia
Proposed SEZ in
private sector by
Jubilant Quality work
force Peaceful labor.
Least man days lost

Regulatory
Framework

Availability of natural
resources

Gujarat SEZ Act


Liberal SEZ policy
Gujarat Infrastructure
Development Act
Notified Area Authority
under GID Act.
Area Development
Authority under Town
Planning Act

Concentration of
Petroleum, Chemical
and Petrochemical
estates across the
district Rich natural
resources and
feedstock availability

19

Landmark developments

Landmark Developments

Gujarat International Finance Tec-City (GIFT)

Metro-Link Express for Gandhinagar & Ahmedabad (MEGA)

Indias first SEZ for global Financial Services GIFT emerges as a forerunner of
new opportunities in Gujarat
The Concept
GIFT aspires to catalyse
Indias large financial services
potential by offering world class infrastructure to attract
top talent in the country

To target 6-8% of
financial services
potential in India

Creation of
1 million direct &
indirect jobs

Up to 90 million
sq. ft. of real estate
office and
residential space

An SPV named METRO-LINK EXPRESS FOR


GANDHINAGAR & AHMEDABAD (MEGA) CO. LTD. as a
Project Development Agency incorporated recently

ALIGNMENT DETAILS
Proposed alignment includes routes within Ahmedabad
and Gandhinagar; it also connects important destination
such as International Airport, GIFT City, Sachivalaya,
Kalupur Railway Station etc.

Globally benchmarked International Finance Centre


Strategically located (12 km from Ahmedabad International
Airport)
Central business hub
Targeting Financial Services & IT/ITeS sectors
First of its kind development in scale, scope and quality
State-of-the-art infrastructure

20

ESTIMATED PROJECT COST:


The estimated construction cost is USD ~ 3.8 billion for a
route of ~101 km, which includes 84 km of elevated
section and 16 km of underground.

21

Business Opportunities
POWER
Power generation
Transmission
Distribution

OIL AND GAS


Upstream
Midstream
Downstream

Business Opportunities
TECHNICAL TEXTILES

PHARMACEUTICALS

Technical textiles

R&D / Manufacturing

Infrastructure
development

Marine Biotechnology
park
Agriculture
Biotechnology Park
Bioservices

CHEMICALS AND
PETROCHEMICALS

MINERAL BASED
INDUSTRIES

Specialty and fine chemicals

High Lignite

High performance chemicals

Bauxite

Engineering plastics

Limestone

Nanotechnology-based projects

Jewellery manufacturing
Infrastructure development
Jewellery retail

Agriculture / horticulture
Infrastructure projects
Export-oriented processing
Newer technology
based projects

Refinery downstream projects

GEMS & JEWELLERY

FOOD AND AGRI


BUSINESS PARKS

ENGINEERING & AUTO


Auto & auto components
Precision Engineering
Heavy electrical industry
Industrial machinery and
machine tools

PORT BASED
DEVELOPMENT
Port mechanization
and port facilities
Shipping industries
Maritime institute
and training

HEALTHCARE
Integrated Medicity /
Healthcity
Establishing Chain of
Primary public
/Community Health
Centres

TOURISM
Hotels
Adventure aero sports
Apartment hotel
Beach water sports
Entertainment
Leisure and knowledge

22

23

Pro-active Governance

Pro-active framework
for setting up industry in Gujarat

Sustainable development in the state

prevent and control the pollution of water in the state, has developed :
26 CETPs* operational in the state
20 common/ individual solid based disposal sites (TSDF)
4 common incinerators and 39 individual incinerators in operation
13 common bio-medical waste management facility
Gujarat has created world class infrastructure through PPP route
78 PPP projects are under implementation
42 projects worth INR 262 billion have been completed
26 projects worth INR 317 billion are in pipeline
* CETP Common Effluent Treatment Plant
** TSDF Hazardous Waste Treatment , Storage and Disposal Facilities

Location
identification

Several firsts in India


Private port at Pipavav in
1992
Liquefied Natural Gas (LNG)
Terminals at Dahej in 2004
Expressway from
Ahmedabad Vadodara in
2004 (PPP)
Countrys only Liquid
Chemical Port Terminal at
Dahej (PPP)
State-wide gas grid of 2,500
km (PPP)

(30-60 days)

Gujarat Pollution Control Board with a view to protect the environment,

(30-60 days)

Apply to GIDC
for Industrial
estates

Registration of
Business
Organization

Approvals/
Registrations/Filings
with competent
authority for setting
up the project

Apply to District
Collectorate for
Government land

(120-180 days)

Private land
(Permissions from
district Collectorate)

In case land falls under Urban development Authority


limits, apply to UDA for zoning/Zone change certificate
and apply to District Collectorate for NA permission

Apply for water to relevant authorities (20-30 days)

Apply to the SEZ or


Industrial Park
developer for land

Apply to Forest
& Environment
Department for
forest land

Obtain permission under FCA &


WPA from competent authorities

Obtain CRZ
clearances
(if applicable)
from F&E Deptt.

(GWIL/SSNL/Irrigation Deptt/CGWA/Local Governing Body/Desal )

Apply for power to relevant zonal offices (20-30 days)

(MGVCL/PGVCL/DGVCL/UGVCL )

Apply for gas to the relevant companies (20-30 days)

(GSPC/Gujarat Gas Company Ltd/Adani Energy/Sabarmati Gas


Ltd./Charotar Gas Sahkari Mandali Ltd)

Apply for Factory License from department of


Labour & Industrial Health and Safety

24

Obtain CTE from


GPCB (in case
land is declared
as dark zone

Land

Construction permission from UDA

Source: Socio-Economic Review Gujarat, 2011-12, Department of Economic affairs, March 2009

Obtain EC from MoEF, GoI for


category A projects. SEAC, F&E
D, GoG for category B projects
(listed in EIA notification Dated
14.09.2006)

Apply for consolidated consent and authorization


from GPCB

Note:
MoEF Ministry of Environment & Forest
GSPC Gujarat State Petroleum Corporation
GPCB Gujarat Pollution Control Board
GIDC Gujarat Industrial Development Corporation
UDA Urban Development Authority
CTE Consent to Establish
CRZ Coastal Regulatory Zone

25

Key Initiatives

Vibrant Gujarat - A journey so far


The journey from investors summit to Global Business Hub

Centres of Excellence
A new scheme introduced from January 2011 to promote creation of Centres of
Excellence in various sectors of industry

A paradigm shift to an ideal platform for Knowledge,


Social and Business Transformation

Special emphasis on creation of Centres of Excellence in 6 focus areas as under:

2013

Specialty and Fine Chemicals

2011

Technical Textiles and spinning

2009

Food processing and Agro business

2007

Auto and Auto components


Solar and wind equipment manufacturing
Electronic Systems Design and Manufacturing

Special Investment Region Act 2009


State-wide Information on Financial Transactions
To catalyze integrated economic development through efficient development
planning

2005
2003
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

The
Global
Business
Hub

To enhance the land availability for industries through the process of town
planning in place of land acquisition

International Centre for Entrepreneurship and Technology (iCREATE)


iCREATE is the Gujarat governments initiative to develop 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

26

27

Vibrant Gujarat 2011

Business Framework

Highlights of Vibrant Gujarat Summit 2011


Partner Countries: Japan and Canada

Revenue

ia
Ind
in

Buyback

Capital

ns
tio

Royalty/ Fees for


Technical Services

Referral Payments

ork
ew

28

Management Recharge

Capital Reduction
Redemption of
Preference Shares

Repatriation Options

Approval Route

Automatic Route
Almost all sectors
with caps for some
select sectors

Interest

m
Fra

Knowledge tie - ups: more than 70 tie-ups with leading


institutions from across the globe

Limited Liability
Partnership (LLP)

ory
lat

Participation: 101 countries, over 1,400 foreign


delegates and more than 35,000 Indian delegates

Wholly Owned Subsidiary


(WOS)/Joint Venture (JV)
(Long term)

gu

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


39 events during Summit

Project Office (PO)


(permitted for a few activities)

Re

Exhibition Area: 35,000 sq m

Branch Office (BO)


(permitted for a few activities)

Op

Around 8,380 Business Intentions expressed

Dividends

Liaison Office (LO) /


Representative Office (RO)

En
tr y

Partner Organizations: UNIDO, JETRO and CBC

Liberalised
Foreign Direct
Investment policy

Beyond the caps for select sectors

29

Tax Framework
Corporate Income Tax

Exchange Control Regime


Indirect Tax

TRANSACTION

INDIRECT
TAX

Import of goods
into India

Customs
duty*

26.85%

42.02% (net basis)

Manufacture of
goods in India

Excise duty
(CENVAT)*

12.36%

Interest

21.01%

Provision of
specified services

Service Tax

12.36%

Royalty/FTS

10.51% (gross basis)


42.02% (net basis)

Import of
technology

R&D Cess

5%

Sale of goods
intra -state

VAT**

4% to 15%
2%#or
equivalent to
local VAT rate

Dividends

Distribution
Tax

Business
profits

Domestic
Company
Foreign
Company

Capital
Gains*

16.22%

32.44% (net basis)

Short term

42.02% (net basis)

Long term

21.01% (net basis)

Sale of goods
inter -state

CST**

NIL

Entry of goods
into specific
areas

Entry Tax /
Octroi**

Branch
profit tax**

Tax rate for Interest, Royalty, FTS & Capital Gains is for nonresident recipient (subject to fulfillment of certain
conditions under the Act). These tax rates are applicable if
income exceeds INR 10 million (US$ 200,000 appx.).
* assuming shares are unlisted

GENERIC
RATE

Foreign exchange
regulator

Forex transactions

Reserve Bank of India


Transactions allowed
on Capital Account and
Current Account

Capital

Royalties and technical fees

Indian rupee

fully convertible for


current account transactions
subject to negative list
of transactions requiring
prior approval

Dividend

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

freely repatriable

freely repatriable
subject to post remittance
formalities

freely repatriable
subject to payment of
Dividend Distribution Tax

** proposed under the Direct Taxes Code to be applicable


from 2013-14

30

31

Facilitators

INDUSTRIAL EXTENSION
BUREAU (iNDEXTb)
Promotes investment in
industrial and infrastructure
projects, acting as a
single-point contact

INDUSTRIES
COMMISSIONERATE
Promotes development,
monitors and controls
functions for planned
industrial development

Contact: Mr. Mukesh Kumar (IAS),


Managing Director

Contact: Mr. Kamal Dayani, (IAS),


Industries Commissioner

GUJARAT INFRASTRUCTURE
DEVELOPMENT BOARD (GIDB)

GUJARAT INDUSTRIAL
DEVELOPMENT CORPORATION
(GIDC)

Frames policies for involvement of


other public sector infrastructure
development agencies
Contact: Mr. A.K. Sharma (IAS),
CEO

Premier promotional agency to


provide all basic infrastructure to
the industries and develop
industrial estates at strategic
locations all over the state
Contact: Mr. B.B. Swain (IAS),
VC & MD

32

Key Contacts
Mr. Maheshwar Sahu, IAS
Principal Secretary
Industries & Mines Department
Ph: +91 79 23250703
secimd@gujarat.gov.in
www.imd-gujarat.gov.in

Mr. Kamal Dayani, IAS


Industries Commissioner
Industries Commissionerate
Ph: +91 79 23252683, Fax : 91(79)232 52683
comind@gujarat.gov.in
www.ic.gujarat.gov.in

Mr. B.B. Swain, IAS


Vice Chairman & Managing Director
Gujarat Industrial Development Corporation
Ph: +91 79 23250583, Fax: +91 79 23250587
vcmd@gidcgujarat.org
www.gidc.gov.in

Mr. Tapan Ray, IAS


Managing Director
Gujarat State Petroleum Corporation
Ph/Fax: +91 79 66701001
tapan@gspc.in
www.gspcgroup.com

Mr. Mukesh Kumar, IAS


Managing Director
Industrial Extension Bureau
Ph: +91 79 232 50492, Fax: +91 79 232 50490
indextb@indextb.com
www.indextb.com

Mr. A.K. Sharma, IAS


Chief Executive Officer
Gujarat Infrastructure Development Board
Ph: +91 79 23232701, Fax: +91 79 23222481
ceo@gidb.org
www.gidb.org

Dr. K.U. Mistry


Chairman
Gujarat Pollution Control Board
Ph: +91 79 23232152, Fax: +91 79 23232156
chairman-gpcb@gujarat.gov.in
www.gpcb.gov.in

Mr. Jagdish Shah


Assistant General Manager
Industrial Extension Bureau
Ph: +91 79 23250400
jsshah@indextb.com
www.indextb.com

33