Presentation from the Gujarat Delegation at the Vibrant India Day 2012 at Nyenrode

1. Welcome to Gujarat

2. 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

3. Vibrant India

4. India – Preferred Investment Destination
Section 1 – India - Preferred investment destination
9th largest economy in the world by nominal Trade Scenario, USD billion FDI Confidence Index, 2012
A.T. Kearney Survey
GDP and 4rth largest by purchasing 400
power parity (PPP) 350 China 1.87
300 CAGR CAGR
Exports Import
250
14% 14% India 1.73
Recorded the highest growth rates in the mid- 200
2000s 150 Brazil 1.6
100
One of the fastest growing economies in the
50
US 1.52
world (GDP – 8.6% in 2011) 0 Growth
1990-91 1994-95 2000-01 2004-05 2010-11 Germany 1.52 Decline
GDP growth rate No Change
15.0% Export Import 0 0.5 1 1.5 2
9.5% 9.6% 9.3%
10.0% 6.8% 8.0% 8.6%
Metallurgic
5.0% India is one of the major G-20 economies al FDI - Top Sectors Petroleum
industries and natural
0.0%
2006 2007 2008 2009 2010 2011
17th largest exporter and 11th largest 5% Automobile
industry
Pharmaceut
icals gas
5% 3%
importer in the world Power 6%
7%
Sectors' contribution to GDP Constructio
Main Export Partners n activities Services
10% 30%
16%
2011-12… 25% 59%
17%
2010-11… 26% 58%
Real estate
US UAE China Hong Kong 11%
2009-10
17% 26% 57% 13% 12% 8% 4%
Computer
2008-09 software Telecommu
18% 26% 56% nications
and
2007-08 Main Import Partners hardware 12%
19% 25% 56% 11%
2006-07 The 2nd preferred investment destination
20% 26% 54% (World Investment Prospects Survey 2010-2012 by UNCTAD)
(300) 200 700 1,200
China UAE Saudi Arabia US Australia USD 254 billion of FDI inflows between
12% 7% 6% 6% 5%
USD, billion April 2000 and March 2012
Agriculture Industry Services 2

5. % Share of Global GDP (PPP)
TRILLION $ ECONOMY
4th largest economy in the world in PPP terms
Taiwan, 1.0% Netherlands, Argentina,
Islamic 1.0%
Poland, 1.0%
0.8% 7% ANNUAL GROWTH
Republic of
Iran, 1.2% Australia, 1.2 Saudi during global economic slowdown
Indonesia, 1.3
% Arabia, 0.9%
%
Turkey, 1.3%
Canada, 1.9% 8.6 % ANNUAL GROWTH PROJECTION
Korea, 1.9%
Spain, 2.0% United for the financial year 2010-11
Mexico, 2.2% States, 20.8%
Italy, 2.6%
China, 11.4%
Brazil, 2.9%
10.0%
GDP Growth Rate (%)
France, 3.1% 8.0%
Russia, 3.3% Japan, 6.3% 6.0%
United 4.0%
Kingdom, 3.2 2008
% Germany, 4.2
2.0% 2009
%
India, 4.7%
0.0% 2010*
ASEAN-5
Korea
Russia
United States
European Union
India
Brazil
Taiwan
-2.0% 2011*
-4.0% 7%
-6.0% *Estimated
-8.0%
-10.0% 5
The Global Business Hub

6. Booming domestic demand

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

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%
9

10. Gujarat – economy on a high trajectory
Major contributor to India's
Gross State Domestic
manufacturing sector
Product growing at a five Soda Ash 98%
year average of ~10%
Diamond processing 80%
Salt production 78%
Plastic industry 65%
Highest Degree of Petro-chemicals 62%
Openness (ratio of Chemicals 51%
exports from state to
Gross State Domestic Pharmaceuticals 35%
Product) at ~53%
Textiles 31%
Source: Gujarat Socio-economic review 2011-12; Annual
Survey of Industries 2008-09; DIPP SIA statistics
10

11. 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

12. 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
Sea-based trade destinations – West Europe, Middle East, Asia
ports in any
Indian state 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
Jakhau Kandla
Mundra
Several firsts in India Navlakhi
Jamnagar
• Private port at Pipavav in 1992 Okha Khambhat
Sikka Dholera
Positra
• Country’s only Liquid Chemical Bhavnagar
Mithivirdi Dahej
Port Terminal at Dahej (PPP) Porbandar
Mahuva
Sutrapad Hazira
a Pipava
Simar v
Jafrabad
Maroli
• Ports in Gujarat handled total traffic of about 342
Major Port
MMT in 2011-12, accounting for 37% of total cargo Private Sector Ports
traffic GMB* Ports
• 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
15

16. Government initiatives
Support for research and development institutions
scheme
• Announced by the Government of Gujarat to support development
in the R&D sector
For support to R&D
Institutions, assistance of upto
• Operative period – February 2009 to February 2014 60% of the project cost is provided
(excluding cost of land and
• Proposed benefits – up-gradation of facilities and setting building)
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 For assistance to
and Industrial Research, Govt. of India and engaged in sponsored contract/sponsored research
R&D work. work, assistance of upto 50% of the
project cost is provided (excluding
• AICTE approved professional colleges including autonomous as cost of land and building) subject
well as those affiliated to Universities, taking up sponsored R&D to a maximum of INR 50 Lakh
work from industry. (USD 100,000)
16

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
17

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 18
fastest growing cities of India

19. Gujarat Social development
Human Development Indicators: Towards a better quality of life
Gross Enrolment Ratio Infant Mortality Rate (Per '000 live births)
(Source: SSA, Gujarat Education Department)
150
115 100
50
110
0
105
100 2001 2002 2003 2004 2005 2006 2007 2008
95 Males Females
90
85 Maternal Mortality Rate (Per one lakh live
births)
500
0
Boys Girls Total 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

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
Increase in the number of seats in technical education
Intake has 60,000 31% 15% 33% 31% 26% CAGR
been 50,000
doubled in 40,000
30,000
the last 3 20,000
2007-08
2011-112
years 10,000
-
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 20
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
SEZs (55)
• Special Investment Regions
Level of Integration
• Multi product
(> 100 sq. km.)
• Chemical
• Textile • Industrial Areas
202 Industrial
Estates • Pharma (50-100 sq. km.)
• IT / ITeS • Delhi Mumbai Industrial
• Electronics
Corridor
• Engineering
83 product
clusters • Biotech
• Gems & Jewellery
Phase I Phase II Phase III Phase IV
Phase of industrial development
21

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
22

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 Ahmedabad
which is the centre of
industrial clusters
specially the chemical and
petro-chemical industries
and other water-intensive
industries, requiring PCPIR
special arrangement
25

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. Exciting opportunities: Delhi Mumbai Industrial
Corridor (DMIC)
Uttaranchal
Haryana
Dadri
Uttar  DMIC: a high impact
Rajasthan Pradesh
industrial area within 150 km
distance on both side of DFC
 A Global Manufacturing and
Trading Hub
Gujarat Madhya Pradesh
 Supported by world class
infrastructure
Maharashtra
Arabian Sea
J.N.Port
End Terminals
DFC Alignment

28. Dholera Special Investment Region (DSIR)
A world class development spread over 900 sq. km.
Determinants Units
Total Area 900+ sq. km.
(including 22
villages)
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

29. Clean Energy, responsible development model, solar panels
Development of
Investment distributed gas based
requirement power combined with
Non- Conventional non conventional
power projects under sources
private sector
Tidal and geothermal
Development of wind-
projects first at a pilot
solar hybrid installations
Fund scale, and then at a
and biomass projects
Project
required commercial scale
(USD
billion)
Development of large
Wind 2.65 scale solar parks and
canal-top solar projects
SHP 0.02
Bio Mass 0.24
Offshore wind projects Development of solar
development manufacturing capacities
Solar 3.82
WTE 0.01 Development of
projects under solar
Total 6.74
rooftop programme
(Bhavnagar, Surat, R
29
ajkot, 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
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

33. 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
2007 The
2005 Global
2003 Showcasing The Global
Making
Making Gujarat as
Gujarat – Business Hub Business
Re- The Growth
establishing Gujarat as Most Engine of Hub
Gujarat as Preferred Preferred India
Investment Investment Investment
Destination Destination Destination

34. 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 Pre-
Summit 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 TIE-
UPS with leading institutions from across
the globe

35. VG 2013 - Summit
Fore Noon After Noon
• Country seminar
11th January
• Partner Organization Seminar
• SUMMIT INAUGURAL • Sector Seminars
2013
• State Seminars
• Round table
• B2B Meetings
Opportunity
• SME Convention
• Youth Convention for
• Country seminar Netherlands State Seminars
12th January
•
• Partner Organization Seminar • Other Seminars
2013
• Sector Seminars • VALEDICTORY
• State Seminars
• Other Seminar
• Round table
• B2B Meetings • B2B Meetings
January
2013
B2G & B2B Meetings - Online match-making on www.vibrantgujarat.com
13th

36. Seminars & Conventions during Summit
Proposed Event Partner Country/
Seminar Timing GoG Anchor
Partner Organization
11th January 2013
Technology Solutions for
1400 - 1700 E&FD & GPCB CII Sweden
Environment Sustainability
Port-led Development South Korea &
1400 -1700 GMB CII
Netherland
Wind and Solar Energy equipment EU India Chamber &
1430 -1730 EPD/ GEDA FICCI
manufacturing Japan, Denmark
Developing integrated, smart,
sustainable cities 1430 -1730 GIDB CII Japan, JETRO
12th January 2013
Gujarat – An Emerging
1000 -1300 GIFT CII Canada
Destination for Financial Services
Land use efficiency – Urban
1000 -1300 UDD CII
Development
Youth Convention – Empowering
1000 -1300 Culture Dept. FICCI AIBC
Youth
Gujarat – An Emerging 1000 -1300 IC ACMA & SIAM
Transportation Hub
SME Convention – Growth 1000 - 1300 IC Office & FICCI
through Competitiveness GIDC

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
December 2011
Slide 39

40. Investment facilitation Portal
Detailed
information on
investing in
Gujarat
December 2011
Slide 40

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

42. Help in understanding
Tax Framework
Corporate Income Tax Indirect Tax
Distribution INDIRECT
Dividends Tax
16.22% TRANSACTION
TAX
GENERIC RATE
Import of goods Customs
26.85%
Domestic into India duty*
Business Company
32.44% (net basis)
Manufacture of Excise duty
profits Foreign 12.36%
Company 42.02% (net basis) goods in India (CENVAT)*
Provision of
Service Tax 12.36%
Interest 21.01% specified services
Import of
10.51% (gross basis) R&D Cess 5%
Royalty/FTS technology
42.02% (net basis)
Sale of goods
VAT** 4% to 15%
Short term 42.02% (net basis) intra-state
Capital
Gains* Long term 21.01% (net basis) Sale of goods 2%# or equivalent
CST**
inter-state to local VAT rate
Branch
NIL Entry of goods into Entry Tax /
profit tax** 4% to 30%
specific areas Octroi**
Tax rate for Interest, Royalty, FTS & Capital Gains is for non-resident
recipient (subject to fulfillment of certain conditions under the Act). These * Customs / Excise duty rates would vary based on the description of the goods
tax rates are applicable if income exceeds INR 10 million (USD 200,000
** VAT/CST and Entry tax rates would vary based on the description of the goods
approx.). and the State where the transaction is undertaken
* assuming shares are unlisted
** proposed under the Direct Taxes Code to be applicable from 2013-14