Transcript Welcome to Gujarat - Nederland India Business Platform

Welcome to Gujarat
Flow of Thoughts
India is an emerging economic super power
Gujarat: Global business hub
Highlights of Gujarat’s development
Opportunities for collaboration with Gujarat
Vibrant Gujarat:2013
Vibrant India
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)
10.0%
9.5% 9.6% 9.3%
0.0%
2007
2008
CAGR
Exports
2009
2010
250
14%
25%
59%
26%
58%
17%
2009-10
26%
57%
2008-09
18%
26%
56%
2007-08
19%
25%
56%
2006-07
26%
54%
200
700
20%
(300)
Agriculture
Industry
Services
1.87
China
CAGR
Import
14%
1.73
India
150
1.6
Brazil
100
50
1.52
US
0
0
importer in the world
2011
US
13%
UAE
12%
China
8%
Metallurgic
FDI
al
industries
Automobile
5%
Power industry
6%
7%
Hong Kong
4%
2
- Top Sectors
Pharmaceut
icals
5%
Petroleum
and natural
gas
3%
Services
30%
Real estate
11%
Computer
software
and
hardware
nd preferred
11%
Main Import Partners
No Change
1
Constructio
n activities
10%
Main Export Partners
Growth
Decline
1.52
Germany
Import
India is one of the major G-20 economies
17th largest exporter and 11th largest
Sectors' contribution to GDP
2011-12
16%
(A)
2010-11
17%
(Q)
A.T. Kearney Survey
200
Export
8.6%
6.8% 8.0%
5.0%
2006
300
1990-91 1994-95 2000-01 2004-05 2010-11
GDP growth rate
FDI Confidence Index, 2012
400
350
Recorded the highest growth rates in the mid2000s
One of the fastest growing economies in the
world (GDP – 8.6% in 2011)
15.0%
Trade Scenario, USD billion
The 2
Telecommu
nications
12%
investment destination
(World Investment Prospects Survey 2010-2012 by UNCTAD)
1,200
USD, billion
China
12%
UAE Saudi Arabia
7%
6%
US
6%
Australia
5%
USD 254 billion of FDI inflows between
April 2000 and March 2012
2
% Share of Global GDP (PPP)
4th largest economy in the world in PPP terms
Taiwan,Netherlands,
1.0%
1.0%
Indonesia,
Islamic
Poland, 1.0%
1.3%
Republic of
Saudi Arabia,
Canada, Turkey, Iran, 1.2%
0.9%
1.3%
1.9%
Australia,
1.2%
Korea, 1.9%
Mexico, Spain,
2.2% 2.0%
Italy, 2.6%
Brazil,
2.9%
TRILLION $ ECONOMY
7% ANNUAL GROWTH
Argentina,
0.8%
during global economic slowdown
8.6 % ANNUAL GROWTH PROJECTION
for the financial year 2010-11
United States,
20.8%
China, 11.4%
Japan,
6.3%
France, 3.1%
GDP Growth Rate (%)
10.0%
8.0%
United
Kingdom,
3.2% 3.3%
Russia,
6.0%
The Global Business Hub
-6.0%
-8.0%
-10.0%
ASEAN-5
-4.0%
European Union
-2.0%
United States
2010*
Taiwan
0.0%
Russia
2009
Korea
2008
2.0%
India
Germany,
4.2%
4.0%
Brazil
India, 4.7%
2011*
7%
*Estimated
5
Booming domestic demand
Advantage India
Land of abundant
natural resources
and diverse climatic
conditions
World's largest
democracy with
1.2 billion people
Enabling business
environment with
greater
global participation
Access to
technology as a
result of the IT
revolution
Strong Market
Fundamentals
Impetus on
Infrastructure
Development
Progressive
simplification and
rationalization of
direct and indirect
tax structures
Competitively
priced skilled
labour
Gujarat emerging as
Global Hub
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 (201112) - 37%
9
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%
Major contributor to India's
manufacturing sector
Soda Ash
98%
Diamond processing
80%
Salt production
78%
Plastic industry
65%
Petro-chemicals
62%
Chemicals
Pharmaceuticals
Textiles
51%
35%
31%
Source: Gujarat Socio-economic review 2011-12; Annual
Survey of Industries 2008-09; DIPP SIA statistics
10
Robust manufacturing
Gujarat’s manufacturing base is at par with
world’s best manufacturing economies
Thailand
40%
China
34%
Malaysia
26%
Japan
18%
South Korea
18%
Germany
17%
India
16%
Russia
16%
Brazil
16%
Gujarat
28%
Gujarat is targeting to increase its manufacturing contribution to
its GSDP to 32% in the next 5 years
11
Gujarat – leveraging strategic location
GUJARAT
London
Newark
Kuwait
Doha
Dubai
Sharjah
Muskat
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
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
Gujarat Ports
Several firsts in India
• Private port at Pipavav in 1992
• Country’s only Liquid Chemical
Port Terminal at Dahej (PPP)
Kandla
Jakhau
Mundra
Navlakhi
Jamnagar
Khambhat
Okha
Sikka
Dholera
Positra
Bhavnagar
Dahej
Mithivirdi
Porbandar
Mahuva
Hazira
Sutrapad
Pipava
a
v
Simar
Jafrabad
• 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
Maroli
Major Port
Private Sector Ports
GMB* Ports
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
15
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 support to R&D Institutions,
assistance of upto 60% of the
project cost is provided (excluding
cost of land and building)
• 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.
For assistance to
contract/sponsored research work,
assistance of upto 50% of the
project cost is provided (excluding
cost of land and building) subject
to a maximum of INR 50 Lakh
(USD 100,000)
16
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
17
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
18
Gujarat Social development
Human Development Indicators: Towards a better quality of life
Gross Enrolment Ratio
(Source: SSA, Gujarat Education Department)
115
110
105
100
95
90
85
Infant Mortality Rate (Per '000 live births)
150
100
50
0
2001
2002
2003
2004
Males
2005
2006
2007
2008
Females
Maternal Mortality Rate (Per one lakh live
births)
500
Boys
Girls
Total
0
1991-2001
2001-03
2004-06
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
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
Intake has
been
doubled in
the last 3
years
Increase in the number of seats in technical education
60,000
31%
15%
33%
31%
26%
CAGR
50,000
40,000
30,000
2007-08
2011-112
20,000
10,000
-
Engg degree
200,000
Pharmacy
degree
MBA
MCA
Engg diploma
(Xth std.)
Industry responsive manpower through 300 skill
development centres by 2014
125,000 Industry responsive manpower through 250 ITIs every
year
Source: Directorate of Employment & Training, Gujarat
20
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
Level of Integration
developments
SEZs (55)
• Multi product
• Chemical
• Textile
202 Industrial
Estates
• Pharma
• IT / ITeS
• Electronics
• Engineering
83 product
clusters
• Special Investment Regions
(> 100 sq. km.)
• Industrial Areas
(50-100 sq. km.)
• Delhi Mumbai Industrial
Corridor
• Biotech
• Gems & Jewellery
Phase I
Phase II
Phase III
Phase IV
Phase of industrial development
21
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
22
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
Gujarat:
Opportunities for
Collaboration
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
25
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
Exciting opportunities: Delhi Mumbai Industrial
Corridor (DMIC)
Haryana
Rajasthan
Uttaranchal
Dadri
Uttar
Pradesh
 DMIC: a high impact
industrial area within 150 km
distance on both side of DFC
 A Global Manufacturing and
Gujarat
Madhya Pradesh
Trading Hub
 Supported by world class
infrastructure
Arabian Sea
J.N.Port
End Terminals
DFC Alignment
Maharashtra
Dholera Special Investment Region (DSIR)
A world class development spread over 900 sq. km.
Determinants
Units
Total Area
(including 22
villages)
900+ sq. km.
Urbanizable area
546 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
Clean Energy, responsible development model, solar panels
Investment
requirement
Non- Conventional
power projects under
private sector
Project
Fund
required
(USD
billion)
Wind
2.65
SHP
0.02
Bio Mass
0.24
Solar
3.82
WTE
0.01
Total
6.74
Development of
distributed gas based
power combined with
non conventional
sources
Tidal and geothermal
projects first at a pilot
scale, and then at a
commercial scale
Development of windsolar hybrid installations
and biomass projects
Development of large
scale solar parks and
canal-top solar projects
Offshore wind projects
development
Source: Energy and Petrochemicals Department, Government of Gujarat
Development of solar
manufacturing capacities
Development of
projects under solar
rooftop programme
(Bhavnagar, Surat,
Rajkot, Mehsana)
29
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
Vibrant Gujarat
Vibrant Gujarat 2011 Summit
Highlights of Vibrant Gujarat 2011 Summit
Partner Countries: Japan and Canada
Partner Organizations: UNIDO, JETRO and CBC
8,380 business intentions expressed
Participation: 101 countries, over 1,400 foreign delegates and more than
35,000 Indian delegates
Knowledge tie-ups: more than 70 TIE-UPS with leading institutions
from across the globe
32
Vibrant Gujarat- A journey so far
The journey from “investors’ summit” to “global business hub”
A paradigm shift to an ideal platform for
Knowledge, Social and Business Transformation
2011
2013
2009
2003
Reestablishing
Gujarat as
Investment
Destination
2005
Making
Gujarat as
Preferred
Investment
Destination
2007
Making
Gujarat as
Most
Preferred
Investment
Destination
Showcasing
Gujarat –
The Growth
Engine of
India
The Global
Business Hub
The
Global
Business
Hub
Vibrant Gujarat 2011
Highlights of Vibrant Gujarat Summit 2011
Partner Countries: Japan and Canada
Partner Organizations: UNIDO, JETRO
and CBC
Exhibition Area: 35,000 sq m
Events: 12 Pre-Event Seminars, 11 PreSummit events, 39 events during Summit
Participation: 101 countries, over 1,400
foreign delegates and more than 35,000
Indian delegates
Knowledge tie-ups: more than 70 TIEUPS with leading institutions from across
the globe
VG 2013 - Summit
12th January
2013
11th January
2013
Fore Noon
After Noon
• SUMMIT INAUGURAL
•
•
•
•
•
Country seminar
Partner Organization Seminar
Sector Seminars
State Seminars
Round table
• B2B Meetings
•
•
•
•
•
•
•
•
• B2B Meetings
13th
January
2013
Opportunity
SME Convention
for
Youth Convention
Netherlands
Country seminar
• State Seminars
Partner Organization Seminar
• Other Seminars
Sector Seminars
• VALEDICTORY
State Seminars
Other Seminar
Round table
• B2B Meetings
B2G & B2B Meetings - Online match-making on www.vibrantgujarat.com
Seminars & Conventions during Summit
Seminar
Proposed Event Partner Country/
Partner
Organization
Timing
GoG Anchor
1400 - 1700
E&FD & GPCB
CII
Sweden
1400 -1700
GMB
CII
South Korea &
Netherland
Wind and Solar Energy equipment
manufacturing
1430 -1730
EPD/ GEDA
FICCI
Developing integrated, smart,
sustainable cities
1430 -1730
GIDB
CII
Japan, JETRO
Gujarat – An Emerging
Destination for Financial Services
1000 -1300
GIFT
CII
Canada
Land use efficiency
Development
1000 -1300
UDD
CII
1000 -1300
Culture Dept.
FICCI
Gujarat – An Emerging
Transportation Hub
1000 -1300
IC
ACMA & SIAM
SME Convention – Growth
through Competitiveness
1000 - 1300
IC Office &
GIDC
FICCI
11th January 2013
Technology Solutions for
Environment Sustainability
Port-led Development
EU India Chamber &
Japan, Denmark
12th January 2013
–
Urban
Youth Convention – Empowering
Youth
AIBC
VG 2013 – Summit
For more details about submit
please visit
http://www.vibrantgujarat.com/
For investment inquiry
,please visit
www.indextb.com/investmentinquiry/investment-inquiry.aspx
About iNDEXTb
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
December 2011
Slide 39
Investment facilitation Portal
Detailed
information on
investing in
Gujarat
December 2011
Slide 40
Thank you!
Welcome to Vibrant Gujarat 2013
Partner countries - Japan and Canada
Visit us at www.vibrantgujarat.com
41
Help in understanding
Tax Framework
Corporate Income Tax
Dividends
Business
profits
Distribution
Tax
Domestic
Company
Foreign
Company
16.22%
32.44% (net basis)
42.02% (net basis)
Interest
21.01%
Royalty/FTS
10.51% (gross basis)
42.02% (net basis)
Capital
Gains*
Branch
profit tax**
Short term
42.02% (net basis)
Long term
21.01% (net basis)
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
Indirect Tax
INDIRECT
TAX
GENERIC RATE
Import of goods
into India
Customs
duty*
26.85%
Manufacture of
goods in India
Excise duty
(CENVAT)*
12.36%
Provision of
specified services
Service Tax
12.36%
R&D Cess
5%
Sale of goods
intra-state
VAT**
4% to 15%
Sale of goods
inter-state
CST**
2%# or equivalent
to local VAT rate
Entry Tax /
Octroi**
4% to 30%
TRANSACTION
Import of
technology
Entry of goods into
specific areas
* 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