Presentation

to

METI - JETRO
Gujarat: Economic Profile

Population 50.5 million (5%)

Area 196,000 sq. km. (6%)
NSDP (in 2003-04 at 1993-94 US$ 19.27 billion (6.3%)
constant prices)

Manufacturing sector US$ 5.17 billion

Fixed Capital Investment US$ 17.9 billion (18.5%)
Industrial Production US$ 39.72 billion (16.2%)
Exports 14% of India
(Source: ASI ) Figures in brackets show % share of India

With 5% of India’s population, Gujarat has 16% of industrial production.

Gujarat had an annual average growth of 9% in the last 3 years and
an average industrial growth of 15%.
Gujarat: Economic Profile

Sector 1993-94 2003-04

Net State Domestic Product Rs. 425.60 Rs. 886.62
at 1993-94 Constant Prices Billion Billion

Primary Sector 27% 25%

Secondary Sector 33% 31%

Tertiary Sector 40% 44%

Source: Socio Economic Review – Gujarat State 2004 - 05
India – Japan Bilateral Trade
India’s Current Imports
(US$ 3.1 billion) (2.88% Share)
Ships, Boats, Floating Structures
and Parts thereof
Motor Parts and Accessories
Project Goods
Iron, Steel, Alloys and Parts
thereof
Electronic Products
Electric, Mechanical Machinery &
Parts thereof
Photography & Cinematography
equipment
Chemicals & Allied Products
India’s Current Exports
(US$ 2.0 billion) (2.51% Share)
Diamonds and Jewellery
Iron Ore
Marine Products
Petroleum, Inorganic & Organic
Chemicals
Cotton Garments and Textiles
Castor Oil and its derivatives
Software
Cashew-nuts, Spices, Tea,
Coffee, etc
 Gujarat: Sectoral Production

Chemicals & Petroleum

2.4 4.6
9.5 Food Processing

Metallurgical Industries
7.4
Textile & Garments

7.5 Engineering
59.3
Mineral Based
9.3
Others

(Source: ASI)
Gujarat: Share in India

Refined Petroleum Products 50% Salt 70%

Drugs & Pharmaceuticals 45%
Chemicals & Allied Products 31% Groundnut 35%
Soda Ash 98% Cotton 18%
Caustic Soda 35% Psyllium Husk 100%
Polyester Filament Yarn 45% Castor Seeds 70%
Textiles 15% (45% of world)
Sponge Iron (HBI) 35%
Fertilizers 30% Market Capitalization 30%
Cement 9%

8 out of every 10 diamonds in the world are

processed in Gujarat
 MNCs in Gujarat
• General Motors (Halol) Automobiles
• GE Plastics (Vadodara) Engineering Plastics
• EI Du Pont (Vadodara) Engineering Plastics, Agro Chemicals
• ABB (Vadodara) Electricals
• Shell (Surat) Gas
• British Gas (Surat) Gas
• Cairn Energy (Surat) Gas
• P&O (Mundra)
Container Port Management
• Maersk (Pipavav)
Container Port Management
• Wyeth (Atul, Valsad)
Pharmaceuticals
• Sanofi Aventis (Ak’lwar)
Pharmaceuticals
MNCs in Gujarat (cont..)
• Pharmacia (Ankleshwar) Pharmaceuticals
• Perstrop (Vapi) Pharmaceuticals
• Ciba Specialty (Ankleshwar) Dyes
• Uber (Vapi) Inks
• Huber (Jhagadia) Fine Silica
• Gujarat Guardian (Valia) Float Glass
• BASF (Dahej) Polystyrene
• Bayer Cropscience (Ankleshwar) Agro Chemicals
• Cheminova (Panoli) Agro Chemicals
• Lanxess ABS (Vadodara) Engineering Plastics
Japanese Companies in Gujarat
Japanese Company Indian Company Product/Sector/Area

Kowa Company Ltd. Adani Port Ltd. Cargo Handling & Port
Infrastructure
Chiyoda Corporation L & T Engineering
Matsushita Electric Matsushita Dry Cell Battery
Lakhanpal Battery
India
C.ITOH & Co. Ltd. Reliance Industries Refining of Crude Oil &
Ltd. Organic Chemicals
Hitachi Life & Home Hitachi Life & Air Conditioners
Solutions Inc. Home Solutions
India Ltd.
Hitachi Displays JCT Electronics Electronics
Japanese Companies in Gujarat
Japanese Company Indian Company Product/Sector/Area

Ricoh Company Ltd. Ricoh India Ltd. Facsimile, Transceiver,

Photocopiers

Japan Metal Gasket Banco Products Automobile Cylinder

Company Gaskets
Kyoto Machinery Texprint Engineers Industrial Machinery

Nippon Sanso Inox India Ltd. Technology for

Corporation Cryogenic Tanks
Seiki Kogyosho Power Build Elecon Geared Motors and
Gears Ltd. Reducers
Nichimen India Gelatine and Chemicals
Chemicals
Gujarat Strengths: Infrastructure
• Longest coastline in India – 1600 km.
• First state to privatize ports, railways and road transport
• 41 Ports
- Cargo handled at Kandla, a major port 41.5 MMT (12% of India)
- Cargo handled by minor and intermediate ports is 89.3 MMT
(80% of India)
• Container Handling - P&O at Mundra & Maersk at Pipavav
• Chemical Port Terminal (3 MMT) - only one in India
• LNG Terminals at Dahej (5 MMT) & Hazira (5 MMT)
• Broad Gauge Rail network across the state
• 11 Airports with an International Airport at Ahmedabad
• Pioneering work in Energy, Water, Urban Development,
Industrial Parks
• Gujarat Infrastructure Development Act – bringing
transparency in PSP in infrastructure projects
Gujarat Maritime Board (GMB) has profiled
investment opportunities in greenfield sites

Draft : 13 mtr.
Draft : 15 mtr. Ship : 30000 DWT
Ship : 77000 DWT PFR:Ramboll
DPR:Sandwell- Denmark
Canada Cargo: Bulk-General
Cargo: Agri & Bulk

Bedi
Draft: 12 mtr.
Ship: 60000 DWT
Mithivirdi PFR: STUP & The
Vansi Dewager, Netherlands
Draft : 20 mtr. Borsi Cargo: Gas & POL
Ship : 120000 DWT Simar
PFR:Rendal Palmer
& Triton UK
Cargo: LNG & Bulk
Investment / Business
Opportunities in Port Sector
• Greenfield Port Projects
– Vansi Borsi
– Mithi Virdi
– Simar
– Bedi
• Ro–Ro Ferry Services including Coastal
Traffic Development
• Ship Building & Ship Repairing
• Development of Modern Fishing Harbour
• Road & Rail Connectivity Infrastructure
• Container Terminal at Dahej
• Port Services & Storage Facilities
• Inland Water Transport
Energy: Gas Based Economy
• 2 LNG Terminals at Dahej & Hazira
• Gas Grid Project - 2200 km. long pipeline with
60-70 MMCD capacity

Commissioned 450 Kms. P/L

Under Construction 750 Kms. P/L

RoU in Progress
SEZs & Industrial Parks
• 11 SEZs
• 2 functional multi product SEZs (Kandla & Surat)
• 9 under development (Multi Product-3, Apparel-2,
Gems & Jewellery-1, Electronics-1, Petroleum &
Petrochemicals-1, Pharma-1)
• SEZs for Steel & Engineering, Auto Components and Industrial
Machinery being processed
• Major amendments in labour legislations in SEZs
• Industrial Parks established in key industries such as Apparel,
Gems & Jewelry, Biotechnology, Pharmaceuticals and IT &
Electronics
• 83 product clusters - Chemicals, Drugs and Pharmaceuticals,
Textile, Ceramics, Foundry, Engineering, Brass Parts, Fish
Processing, etc.

Gujarat is the only state in India having labour

flexibility and full relaxation in Labour laws in SEZs
Gujarat: Urban Development
• Gujarat is one of the most urbanized states in India, with
40% urban population
• The state had declared 2005 as the Year of Urban
Governance
• Ahmedabad declared a Mega City
• Under the Sabarmati Riverfront Project in Ahmedabad,
a 9 km riverfront is being developed in the 1st phase
on both sides of the river
• MRTS and BRTS are being planned in Ahmedabad
• Transformation of Surat as the cleanest city in India
• Piped cooking gas system started through PSP
• CNG promoted in a big way in urban transportation system
• Modern SWM in place in Ahmedabad and Surat. To be
extended to other cities through local bodies and PSP
Environmental Infrastructure
• 6 Hazardous Solid Waste Disposal sites
Vatva, Naroda, Nandesari, Ankleshwar*, Surat*, Vapi*
(* ISO 14001 Certified)

• 6 Treated Effluent Conveyance Pipelines

Ahmedabad, Vadodara, Dahej, Ankleshwar, Sachin,
Sarigam

• 19 Common Effluent Treatment Plants

• 4 Hazardous Industrial Waste Incinerators

Nandesari, Ankleshwar, Surat, Vapi

• Gujarat Cleaner Production Centre

Gujarat: Engineering & Automotive
Sound Base
 Largest producer of sponge iron and SAW & ERW pipes
 Important center for the manufacture of textile machinery, chemical
machinery, pollution control equipment, printing machinery, compressors,
bearings, TV tubes and clocks
 Important manufacturer of power generation plants, switchgears,
transformers and transmission line towers
 Largest ship breaking yard in the country (Alang)
 27 Clusters – castings & machine tools, brass parts, oil engines &
electric motors, submersible pumps, industrial valves &
bearings, auto-ancillaries
Anchor Industries
 Essar Steel: Sponge Iron (2.4 MT), expanding to 6.4 MT
 Hindalco: Copper Rods (250,000 MT), doubling capacity
 Elecon Engineering: Largest manufacturer of industrial gears
 Gujarat Apollo: Largest producer of road-making equipment
 Kalpataru Power Transmissions: Largest capacity plant in the world
 Other Key Investors: GM, L&T, ABB, Videocon & Jyoti Engineering

Source: Government of Gujarat

Gujarat: Chemicals & Petrochemicals
Sound Base
 The largest contributor to Chemical and Petrochemical Industry of India
 Well developed infrastructure for manufacturing, storing, transporting and
effluent treatment
 Home to some of the largest chemical estates in Asia (Vapi, Ankleshwar)
 4 Petrochemical Complexes, 2 large Petroleum Refineries and
6 large Chemical-Fertilizer Complexes
 Special Economic Zone for Petroleum and Petrochemical Sector
 Over 1360 large and medium scale Chemical & Petrochemical projects with
investment exceeding US$12.3 billion

Anchor Industries
 GSFC: Diversified Fertilizer and Chemical product portfolio. About
US$ 650 million of investment. India’s first joint sector industrial complex
 Reliance: State of the art Petroleum Refinery at Jamnagar with
capacity of 27 million tonnes per annum (540,000 barrels per day)
 Torrent: Dominant player in the therapeutic areas of
Cardiovascular (CV) and Central Nervous System (CNS)
 Other Key Investors: BASF, Bayer, Rallis India, Alembic, IPCL, Novartis, Zydus,
Ranbaxy, Cadila, IFFCO, etc.

Source: Government of Gujarat

Gujarat: Textiles and Apparel
Sound Base
 Largest producer of cotton in the country and a major source for
man-made fabric
 Modern process houses with environment friendly technology
 Largest supplier of Denim in the world. Textile industry in Gujarat accounts
for 30% of woven fabrics in organized sector in country.
 Surat in South Gujarat, contributes 40% of Art Silk fabric produced in India
 Apparel Parks at Surat and Ahmedabad declared as Special Economic Zones
with flexible labour laws
 Gujarat contributes about 12% of the total textile exports of the country
 Over 1000 medium and large scale textile projects with investment
exceeding US$ 2.82 billion have been commissioned and about 300 projects
are under implementation

Anchor Industries
 Arvind: Shirting, Knits, Khakhis and ready to wear garments. A leading
manufacturer of Denim in the world
 Welspun: Home Textiles & Made ups. Amongst the top 3 Terry Towel
producers in the world
 Other Key Investors: Reliance, Ashima, Dinesh, Raymonds, Aarvee, etc.

Source: Government of Gujarat

Gujarat: Strengths in IT-ITES
Location
 Economical Real Estate: Monthly rentals - US$ 36 / 100 sq. ft. in
Ahmedabad (US$ 78 in Pune, US$ 127 in Delhi, US$ 193 in Mumbai)
Manpower
 Premier Educational and Research facilities
 Computer Education is compulsory in schools
 Manpower rates - US$ 3.70 / shift in Ahmedabad
(US$ 5.00 in Pune, US$ 9.00 in New Delhi, US$ 9.20 in Mumbai)
 Lowest attrition rate in the BPO sector among all other states
Capability
 Ahmedabad has developed sound capabilities in Web Development
Services, call/contact centers & BPO operations – 8 large companies.
Infrastructure
 Telecom: Highest number of phone connections - 12 per 100 persons;
highest number of ISPs in the country
 India’s longest OFC network
 First Software Technology Park in India. 3 IT Parks – Infocity in
Gandhinagar, GNFC Tower & Astron Tech Park in Ahmedabad

Nasscom, Knight Frank, Cushman & Wakefield, Colliers Jardine, Cochinnet.com, A.T. Kearney analysis
Strengths in IT-ITES (cont….)
Government Support
 Single Window facilitation mechanism
 Incentives in real estate, power and telecom facilities
 Science &Technology Department for implementation of
IT Policy with Gujarat Informatics Ltd. as corporate arm
 Creation of Information Corridor between state capital and districts
 3% of budget committed to IT related activities
 Private sector participation encouraged in
• Creation of Information Corridor
• Setting up Information Kiosks
• Provision of Database oriented services
• Setting up of Information Infrastructure
 IT Plan submitted by National Task Force has targeted one PC per
50 persons by 2008. Gujarat aims to achieve this by 2006
 Venture Capital Fund for IT services, IT software and IT products

Government of Gujarat
Gujarat: Other USPs
• Gujarat is the numero uno state in India in
industrialization
• Least mandays lost due to industrial unrest – 0.94 % of the
country while contributing 16.2% of India’s industrial
production
• Major state owned enterprises turned around during the
last 4 years
• 302 investment proposals worth US$ 38.2 billion received
during the Global Investors’ Summits in 2003 & 2005.
• Kutch, a backward pastoral district – ravaged by the worst
earthquake of the century just 5 years ago, is now on way
to unprecedented economic prosperity

Gujarat is committed to maintain its double digit

economic growth
Japan – Gujarat: Potential
Scope for Japanese Companies in Gujarat
• Infrastructure, including SEZs and Real Estate Development
• Transport Infrastructure Project such as Mass Rapid Transit
Systems for rail and bus
• Ports, including Port & Cargo Management, Integrated Solutions
in Marine Logistics
• IT, ICT, ITES, High-end Electronics
– Japanese Companies can set up IT and Electronics Industrial Parks
• Engineering – Jointly develop an auto-ancillary Industrial Park
for export of auto components
• Chemical and Allied Industries – Technology Transfer
• Tourism – Theme Parks, Tourist Trails, Special Entertainment
Zones. Gujarat is celebrating 2006 as Tourism Year
• Healthcare – Gujarat accounts for 31% of the country’s Medical
Tourism
• Biotechnology, Nano-science, Electronics, Communication
Technology, etc.
 Thank you
www.ic.gujarat.gov.in
www.indextb.com

indextb@indextb.com

+91(79) 23256009 / 10 / 11

Designed by NetLink India