GUJARAT THE GROWTH ENGINE OF INDIA - RUDABAI STEPWELL IN ADALAJ, GUJARAT - IBEF

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GUJARAT THE GROWTH ENGINE OF INDIA - RUDABAI STEPWELL IN ADALAJ, GUJARAT - IBEF
RUDABAI STEPWELL IN ADALAJ, GUJARAT

 GUJARAT
 THE GROWTH ENGINE OF INDIA

For updated information, please visit www.ibef.org                                May 2018
GUJARAT THE GROWTH ENGINE OF INDIA - RUDABAI STEPWELL IN ADALAJ, GUJARAT - IBEF
Table of Content

   Executive Summary .…………….…….…...3

   Introduction ……..………………………...…4

   Economic Snapshot ……………….….……9

   Physical Infrastructure ………..……..........14

   Social Infrastructure ...................................27

   Industrial Infrastructure ……..……….........30

  Key Sectors ………….………………..…...33

  Key Procedures & Policies………………...51

  Annexure.………….……..….......................64
GUJARAT THE GROWTH ENGINE OF INDIA - RUDABAI STEPWELL IN ADALAJ, GUJARAT - IBEF
EXECUTIVE SUMMARY

                                                  According to the DIPP, FDI inflows in the state of Gujarat totalled US$ 17.44 billion during April 2000 –
     Second Preferred
                                                   December 2017. In 2016-17, Gujarat accounted for about 7.75 per cent share in the overall FDI inflows in
     Investment Destination                        India.

                                                  As of December 2015, Gujarat ranked second in the production of crude oil (onshore) in India. During 2016-
     Petro Capital of India                        17, the state produced 4.61 million tonne of petroleum (crude) and Natural Gas (Utilised) was 1,519 million
                                                   cubic metres.

                                                  Gujarat’s dairy sector consists of 17 district milk producers’ unions, with around 14,598 milk co-operative
     Highest Share in India’s
                                                   societies. The state’s milk production, which stood at 12.78 million tonnes during 2016-17, was the third
     Total Dairy Output                            largest state in India with 7.9 per cent of India’s share.

                                                  The state attracted investment commitments worth US$ 1,407 million under Gujarat's textile policy 2012, for
     Strong Textile Base                           varied units such as processing, spinning, weaving, made-ups, technical textiles etc. The Gujarat Garment &
                                                   Apparel policy was announced in October 2017 with the aim of creating 100,000 jobs in the state.

    Note: As per latest data available.
    Source: Gujarat Economic Review, 2017-18, Department of Industrial Policy & Promotion, April 2000 to March 2016, Ministry of Textiles, Industrial Extension Bureau
    Ministry of Petroleum & Natural Gas

3         Gujarat                                                                                                         For updated information, please visit www.ibef.org
GUJARAT THE GROWTH ENGINE OF INDIA - RUDABAI STEPWELL IN ADALAJ, GUJARAT - IBEF
Gujarat

INTRODUCTION
GUJARAT THE GROWTH ENGINE OF INDIA - RUDABAI STEPWELL IN ADALAJ, GUJARAT - IBEF
GUJARAT FACT FILE

                                                                                   There are seven agro-climatic zones in the state that support
                                                                                     cultivation of a wide range of crops.

                                                                                   The most commonly spoken language of the state is Gujarati. Hindi
                                                                                     and English are the other Indian languages used.

                                                                                  Parameters                                              Gujarat

                                                                                  Capital                                               Gandhinagar

                                                                                  Geographical area (sq km)                               196,063

                                                                                  Administrative districts (No)                             26
                                                          Source: Maps of India
                                                                                  Population density (persons per sq km)                    308

                                                                                  Total population (million)                                60.4
     Gujarat is located on the western coast of India and has the longest
                                                                                  Male population (million)                                 31.5
     coastline of 1,600 km in the country. The state shares its borders with
     Rajasthan, Madhya Pradesh, Maharashtra and the Union Territories of          Female population (million)                               28.9
     Daman & Diu and Dadra & Nagar Haveli. The Arabian Sea borders the
                                                                                  Sex ratio (females per 1,000 males)                       919
     state both to the west and the south-west.
                                                                                  Literacy rate (%)                                        78.03
     Gandhinagar, Ahmedabad, Vadodara, Surat, Rajkot, Bhav-nagar and
     Jamnagar are some of the key cities of the state.

    Source: Gujarat Socio Economic Review

5        Gujarat                                                                                      For updated information, please visit www.ibef.org
ADVANTAGE GUJARAT

                       High economic growth and industrial                                            Policy incentives
                                 development                                         The state government has framed policies in almost all
                  Average annual Gross State Domestic Product (GSDP)                 key sectors such as industry, power, ports, roads,
                   growth rate from 2011-12 to 2016-17 was about 13.47                agriculture & minerals.
                   per cent.                                                         The Gujarat Garment & Apparel policy was announced
                  Gujarat has achieved the distinction of being one of the           in October 2017 with the aim of creating 100,000 jobs
                   most industrially developed states. Accounting for 5 per           in the state.
                   cent of the total Indian population, Gujarat contributes          Gujarat, with highest installed solar capacity, plans to
                   about a quarter to India’s goods exports.                          announce new net metering policy providing financial
                                                                                      support to solar power generating households.

                                                                           Advantage
                                                                            Gujarat
                                    Rich labour pool                                             Facilitating infrastructure
                  Gujarat has a good educational infrastructure with                Gujarat has successfully developed world class
                   premier institutes in management, fashion, design,                 infrastructure.
                   infrastructure planning & pharmaceuticals.                        There are 42 ports, 18 domestic airports & 1
                  There are industrial training institutes in each district to       international airport. The state also has an extensive
                   train manpower for the shop floor level. The state                 road & rail network. A 2,200 km gas grid supplies gas
                   government has undertaken many initiatives to                      to the industrial areas.
                   encourage innovation in the education sector.

6   Gujarat                                                                                             For updated information, please visit www.ibef.org
GUJARAT VISION 2020

                                                                                                  Make Gujarat a globally recognised
                                                 Encourage solar and wind energy generation.      knowledge society.

                                                 Encourage power generation and become a         Develop two knowledge corridors enabling
                                                  trading hub for the West.                        functioning of institutions in sectors like
                                                                                                   retail, aviation and centres of excellence.
                                                 Enhance gas supplies through E&P.

              Attract investments in SIRs, industrial                                               Education/                          Real GSDP to grow three times by 2020.
               areas, SEZ infrastructure.
                                                                                                 Skill Development                       Per capita income to be around US$
                                                                           Energy & Power
              Develop PCPIR to attract investments                                                                                       12,615 (in PPP terms) by the year 2020.
               in the petroleum products and
               chemicals sectors.                               Investment                                        GSDP/Per
                                                                 Promotion                                       Capita Income
                                                                                      Vision 2020
                                                                  Tourism                                        Industry
           Make Gujarat a global tourist destination.                                                                                      Develop world class and globally
                                                                                                                                             competitive industrial infrastructure.
           Setting up a tourism development fund,
                                                                            Healthcare/              Transport
            which would provide incentives to tourism                                                                                       Invest in ports and infrastructure to boost
            projects.
                                                                          Social Amenities
                                                                                                                                             imports and exports.

                                                  Improve quality of life of people by
                                                                                                   Develop high speed integrated transport
                                                   developing clean, green and safe cities.
                                                                                                    network meeting global standards.
                                                  Create good healthcare infrastructure to be
                                                                                                   Bullet train and Metro Rail Transport Project
                                                   at par with upper middle income countries.
                                                                                                    to reduce travel time.

    Source: Blueprint for Infrastructure in Gujarat (BIG 2020) PCPIR: Petroleum, Chemical and Petrochemical Investment Region

7         Gujarat                                                                                                         For updated information, please visit www.ibef.org
GUJARAT IN FIGURES

    Gujarat’s Contribution to Indian Economy (2016-17)                                         Physical Infrastructure in Gujarat

    Parameter                                    Gujarat                  India                Parameter                                  Gujarat                     India
    GSDP as a percentage of all                                                                Installed power capacity
                                                   7.59                   100.0                                                         30,794.32                 343,788.39
    states’ GSDP                                                                               (MW) (April 2018)*
    GSDP growth rate (%)                          12.97                   10.80                Wireless subscribers (No)
                                                                                                                                        71,922,687              1,183,408,611
                                                                                               (as of March 2018)
    Per capita GSDP (US$)                         2,654                  17,503
                                                                                               Internet subscribers (Mn)
                                                                                                                                           28.80                     445.95
    Social Indicators                                                                          (as of December 2017)
                                                                                               National highway length
    Parameter                                    Gujarat                  India                                                            5,456                    122,432
                                                                                               (km)
    Literacy rate (%)                             78.03                    73.0                Major and minor ports
                                                                                                                                           1+41                      13+187
                                                                                               (No)
    Birth rate (per 1,000
                                                   20.1                    20.4
    population)                                                                                Airports (No)                                 18                        125

    Industrial Infrastructure                                                                  Investments (as of December 2017)

    Parameter                                    Gujarat                  India                Parameter                                     Gujarat                  India
    Operational PPP projects (No)                                                              Cumulative FDI equity inflows
                                                   526                    9,066                                                               17.44                  367.93
    (May 2018)                                                                                 since April 2000 (US$ billion)

    Notified SEZs (No)                              24                     356

    Note: GSDP, per capita GSDP figures are taken at current prices, Exchange Rate used is average of 2016-17, i.e. USD = INR 67.09, PPP: Public-Private Partnership, SEZ: Special
    Economic Zone, SRS: Sample Registration System, * For the year 2018-19

8     Gujarat                                                                                                        For updated information, please visit www.ibef.org
Gujarat

ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT – GSDP

                 Visakhapatnam
                         GSDP port
                               at current
                                    traffic prices
                                            (million tonnes)                                                            Visakhapatnam
                                                                                                                                   Perport
                                                                                                                                       capita
                                                                                                                                           traffic
                                                                                                                                              GSDP (million tonnes)

        200.00                                                                                     14         3,000                                                                                               200,000
                                                 CAGR (In Rs) 13.47%                                                                                        CAGR (In Rs) 11.99%
        180.00                                                                                                                                                                                                    180,000
                                                                                                   12         2,500

                                                                                                                                                                                                        178,043
                                                                                                                                                                                                          2,654
                                                                                         172.63
        160.00                                                                                                                                                                                                    160,000

                                                                                         11.58

                                                                                                                                                                                                2,439
                                                                                                                                                                                              159,689
                                                                                                                                                                                      2,379
                                                                                156.61
        140.00                                                                                     10                                                                                                             140,000

                                                                    150.74

                                                                               10.25

                                                                                                                                                                                 145,484
                                                                                                              2,000

                                                                                                                                                         2,156

                                                                                                                                                                      2,135
                                                                                                                           2,108
                                                        133.49
                                         133.06

                                                                                                                                                                                                                  120,000

                                                                   9.22
        120.00

                                                                                                                                                                 129,158
                     128.38

                                                                                                   8

                                                                                                                                                  117,398
                                                       8.08

        100.00                                                                                                1,500                                                                                               100,000
                                      7.24

                                                                                                                                     101,075
                                                                                                   6                                                                                                              80,000
         80.00
                               6.16

                                                                                                              1,000
         60.00                                                                                     4                                                                                                              60,000
         40.00                                                                                                                                                                                                    40,000
                                                                                                                500
                                                                                                   2
         20.00                                                                                                                                                                                                    20,000
          0.00                                                                                     0               0                                                                                              0

                                                                                                                           2011-12

                                                                                                                                                  2012-13

                                                                                                                                                                 2013-14

                                                                                                                                                                                 2014-15

                                                                                                                                                                                              2015-16

                                                                                                                                                                                                        2016-17
                     2011-12

                                      2012-13

                                                       2013-14

                                                                   2014-15

                                                                               2015-16

                                                                                         2016-17

                                                US$ billion      Rs trillion                                                                                               US$      Rs

                                                                                                          The state’s per capita GSDP^ stood at Rs 178,043 (US$ 2,654)
      At current prices, Gujarat’s GSDP* was about Rs 11.58 trillion (US$                                 during 2016-17 in comparison with Rs 101,075 (US$ 2,108) during
       172.63 billion) during 2016-17.                                                                     2011-12.
      The state’s GSDP grew at a CAGR of 13.47 per cent, during 2011-                                    Gujarat’s per capita GSDP increased at a CAGR of 11.99 per cent
       12 to 2016-17.                                                                                      between 2011-12 and 2016-17.

 Note: Exchange rates used are averages of each year, provided on Page 69                               Source: Directorate of Economics and Statistics Gujarat, Government of Gujarat per Capita
 Source: Directorate of Economics and Statistics Gujarat, Government of Gujarat                         GSDP^ - calculated using GSDP million US$ /Population in million

10      Gujarat                                                                                                                                For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – NSDP

                 Visakhapatnam
                         NSDP atport
                                 at current
                                     traffic (million
                                              prices tonnes)                                                                      Visakhapatnam
                                                                                                                                              Perport
                                                                                                                                                  capita
                                                                                                                                                      traffic
                                                                                                                                                          NSDP(million tonnes)

        160.00                                         CAGR (In Rs) 13.85%                                   12         2,500                                                                                                              180,000
                                                                                                                                                                               CAGR (In Rs) 12.36%

                                                                                                    151.92
                                                                                                                                                                                                                                           160,000

                                                                                                                                                                                                                                   2,336
        140.00
                                                                                                             10

                                                                                                                                                                                                                              156,691
                                                                                        137.57

                                                                                                                                                                                                                      2,143
                                                                                                                        2,000

                                                                                                 10.19
                                                                                                                                                                                                                                           140,000

                                                                                                                                                                                                         2,077
                                                                             131.60
        120.00

                                                                                                                                                                                                                 140,273
                                                                                                                                                           1,888
                                                                                      9.01

                                                                                                                                                                                         1,870
                                                              116.93

                                                                                                                                     1,824
                                      116.54

                                                                                                             8                                                                                                                             120,000

                                                                                                                                                                                                  127,017
                     111.12

        100.00

                                                                         8.05
                                                                                                                        1,500

                                                                                                                                                                                  113,139
                                                                                                                                                                                                                                           100,000
                                                           7.07

                                                                                                                                                                     102,826
         80.00                                                                                               6
                                                6.35

                                                                                                                                                                                                                                           80,000

                                                                                                                                               87,481
                                                                                                                        1,000
                               5.33

         60.00
                                                                                                             4                                                                                                                             60,000
         40.00
                                                                                                                           500                                                                                                             40,000
                                                                                                             2
         20.00                                                                                                                                                                                                                             20,000

          0.00                                                                                               0               0                                                                                                             0
                     2011-12

                                      2012-13

                                                           2013-14

                                                                         2014-15

                                                                                      2015-16

                                                                                                 2016-17

                                                                                                                                     2011-12

                                                                                                                                                           2012-13

                                                                                                                                                                                  2013-14

                                                                                                                                                                                                  2014-15

                                                                                                                                                                                                                 2015-16

                                                                                                                                                                                                                              2016-17
                                                US$ billion            Rs trillion                                                                                                          US$      Rs

      Gujarat’s NSDP was about Rs 10.19 trillion (US$ 151.92 billion)                                              Gujarat’s per capita NSDP& was Rs 156,691 (US$ 2,336) during
       during 2016-17.                                                                                               2016-17 in comparison with Rs 87,481 (US$ 1,824) during 2011-12.
      The state’s NSDP expanded at a CAGR of 13.85 per cent from                                                   The state’s per capita NSDP increased at a CAGR of 12.36 per cent
       2011-12 to 2016-17.                                                                                           between 2011-12 and 2016-17.

 Note: Exchange rates used are averages of each year, provided on Page 69                                         Source: Directorate of Economics and Statistics Gujarat, Government of Gujarat per capita
 Source: Directorate of Economics and Statistics Gujarat, Government of Gujarat                                   NSDP& -calculated using NSDP million US$/Population in million

11      Gujarat                                                                                                                                         For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PERCENTAGE
                  DISTRIBUTION OF GSDP

      During 2016-17, the tertiary sector contributed 36.12 per cent to the                               Visakhapatnam
                                                                                                                Percentageport
                                                                                                                           distribution
                                                                                                                               traffic (million
                                                                                                                                         of GSDPtonnes)
        state’s GSDP (at current prices), followed by shares of secondary
        (44.77 per cent) and primary (19.11 per cent) sectors.                                   100%
                                                                                                                       36.71%            CAGR            36.12%
                                                                                                   90%
      The primary sector increase at a CAGR of 8.85 per cent between
        2011-12 and 2016-17.                                                                       80%                                  12.40%

                                                                                                   70%
      At a CAGR of 15.06 per cent, the secondary sector has been the
        fastest growing sector, during 2011-12 and 2016-17. Growth in the                          60%                 40.48%                            44.77%

        sector was driven by expansion of manufacturing, construction and                          50%                                  15.06%
        electricity, and gas & water supply industries.
                                                                                                   40%

      The tertiary sector increased at a CAGR of 12.40 per cent between                           30%
        2011-12 and 2016-17. Growth was driven by trade, hotels, real
                                                                                                   20%                 22.81%
        estate, finance, insurance, transport, communications and other                                                                  8.85%           19.11%
        services sectors.                                                                          10%

                                                                                                    0%
                                                                                                                      2011-12                            2016-17

                                                                                                                        Primary     Secondary       Tertiary

 Note: Exchange rates used are averages of each year, provided on Page 69
 Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics Gujarat, Government of Gujarat Sector-wise %share of
 GSDPµ -Geometric mean of YoY calculation from 2011-12 to 2016-17

12      Gujarat                                                                                                    For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – FDI INFLOWS &
                     INVESTMENTS

       According to the DIPP, FDI inflows to Gujarat totalled US$ 17.44                 Cumulative FDI
                                                                                       Visakhapatnam    inflows
                                                                                                     port traffic (US$   million)
                                                                                                                  (million tonnes)
         billion f rom April 2000 to December 2017.
                                                                              20,000
       The Vibrant Saurashtra Expo and Summit, was held in Rajkot in
                                                                              18,000
         January 2016. MoUs worth US$ 341.88 million were realised for the

                                                                                                                                                         17,438
         development of various sectors of the state during the event. The    16,000

                                                                                                                                               16,652
         2018 edition of the expo will be held in April 2018.                 14,000

                                                                                                                                     13,285
       Domestic companies which have disclosed their investment              12,000

         commitments include Reliance Industries, Suzlon, Aditya Birla

                                                                                                                           11,041
                                                                              10,000
         Group, and Videocon. Foreign companies who have committed

                                                                                                                 9,510
                                                                               8,000

                                                                                                       8,650
                                                                                          8,157
         investments include Rio Tinto, Suzuki and CLP Holdings.
                                                                               6,000
       The lifting of suspension from 3 industrial clusters — Vapi, Vatva,
                                                                               4,000
         and Ankleshwar including Panoli is expected to boost employment,
                                                                               2,000
         investment and growth opportunities in the respective industrial
         areas.                                                                   0

                                                                                          2011-12

                                                                                                       2012-13

                                                                                                                 2013-14

                                                                                                                           2014-15

                                                                                                                                     2015-16

                                                                                                                                               2016-17

                                                                                                                                                         2017-18*
     Note: * up to December 2017
 Source: Department of Industrial Policy & Promotion, News Articles.

13        Gujarat                                                                                   For updated information, please visit www.ibef.org
Gujarat

PHYSICAL
INFRASTRUCTURE
PHYSICAL INFRASTRUCTURE – ROADS…(1/2)

       National highways length in Gujarat is 5,456 km (as of February
          2018).

       The Government of Gujarat, through GIDB, has prepared a vision
          document – Blueprint for Infrastructure in Gujarat (BIG)-2020. Under
          this document, the state has identified a series of projects and
                                                                                                                                                  National Highways
          investments required across the road sector to be implemented on
                                                                                                                                                  State Highways
          priority basis for Gujarat’s inclusive growth.
                                                                                                                                                   Railways
       Along with road infrastructure, the Government of Gujarat is focusing
          on the growth of transportation sector in the state. The Gujarat State
          Road Transport Corporation delivers transportation facility to about                Type of road                                               Length (km)
          24 lakh people every day.                                                                                 1
                                                                                              National highways                                               5,456

       For the growth of road and buildings, the Government has allocated                    State highways                                                  19,761
          US$ 1.41 billion in the budget 2017-18.
                                                                                              Major district roads                                            20,641

                                                                                              Other district roads                                            10,493

                                                                                              Village roads                                                   21,119

     Note: 1up to February 2018
     Source: Gujarat State Road Development Corporation , Road & Building Department, Government of Gujarat, NHAI

15        Gujarat                                                                                                       For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – ROADS…(2/2)

     Fund Allocation and Expenditure                                                          Budget 2017-18

                    CRF (US$ million)                  EI & ISC (US$ million)                 Project/scheme                                                 Funds allocated

                   Accrual        Release@            Accrual          Expenditure            Kisanpath Yojana                                               US$ 29.80 million

                                                                                              Mukhya Mantri Gram Sadak Yojna scheme                         US$ 400.00 million
     2014-15        25.18            17.13              NA                  2.35
                                                                                              State Highways (four lanes)                                   US$ 184.16 million
     2015-16        27.74             9.47              NA                  0.95
                                                                                              State Highways (two lanes)                                     US$ 33.60 million
     2016-17        69.06            20.49              0.31                0.31              Kisan Path Scheme                                              US$ 30.72 million

     2017-18        69.52            11.57              1.24               0.70^              Vikas Paths                                                    US$ 12.80 million

      As per state budget 2018-19, government has allotted US$ 221 million for the development of road transport.

      Under the plan and non-plan head for Ports and Transport Department, the state government has allocated US$ 198 million during 2017-18.

      In March 2017, the Prime Minister announced investment of US$1.78 billion for upgrading 8 state highways to national highways in order to boost
        the infrastructure development in the state.

      In August 2017, Government of India signed a loan agreement worth US$ 329 million for the Gujarat Rural Roads Project. The projects will be
        implemented to improve rural road connectivity and accessibility in 1,060 villages in the state.

 Note: @ Funds to some states have been released more than accrual of a state from the unspent balance of previous years of that States, ^ Up to December, 2017, NA – Data not
 available.
 Source: State Budget 2016-17

16      Gujarat                                                                                                      For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – RAILWAYS

      Gujarat had total length of railway line are 5258.49 route kms which
        consists of 3506.55 kms of Broad Gauge (BG), 1193.04 kms of
        Meter Gauge (MG) and 558.90 kms of Narrow Gauge (NG) lines.

      The rail traffic in Gujarat mainly falls under the following divisions of
        Western Railway: Vadodara, Rajkot, Bhavnagar, Ratlam, Mumbai &
        Ahmedabad.

      Ahmedabad, Anand, Bhavnagar, Bhuj, Godhra, Porbandar, Rajkot,
        Vadodara (Baroda) & Valsad are some of the important railway
        stations in the state.

      India's first National Rail and Transportation University which will be
                                                                                       Source: Maps of India
        set up in Vadodara.

      The state government is developing a High Speed Rail passenger
        corridor from Ahmedabad to Mumbai with the cooperation of the
        Government of Japan. The length of the corridor is 508 km and total
        journey time for the train is estimated at 2.07 hrs with total estimated
        cost of the project is US$ 14.92 billion. About 81 per cent of the
        funding for the project will come by way of a loan from Japan.

 Source: Socio-Economic Review of Gujarat, 2015-16 MEGA-Metrolink Express for Gandhinagar and Ahmedabad, News articles

17      Gujarat                                                                                                For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – AIRPORTS…(1/2)

     Aircraft movement, Passenger and Freight in 2017-18

                           Aircraft                 Passenger
       Airport                                                           Freight (MT)                 Naliya
                                                                                                                               Deesa
                        movement (nos.)            traffic (nos.)                                                                      Mehsana
                                                                                                                 Bhuj
       Ahmedabad                63,129               9,174,425              91,633          Mundra                   Kandla
                                                                                                                      Mandvi                Ahmedabad
                                                                                             Mithapur
                                                                                                                     Jamnagar              Vadodara
       Vadodara                 7,338                1,008,506               2,308                      Porbandhar          Rajkot
                                                                                                                     Amreli
                                                                                                                                                 Surat
                                                                                                                              Bhavnagar
       Rajkot                   4,499                  365,427               289                      Keshod                Diu
                                                                                                                                            Daman

                                                                                                    International airport        Domestic airport

      The state has 18 domestic airports (the highest in any state) and one international airport. Out of these, 9 are under Airports Authority of India
        (AAI), 2 in Daman & Diu, 3 under state government, 3 under Indian Air Force (IAF), while 2 are private airports.

      There are domestic airports at Bhavnagar, Bhuj, Jamnagar, Kandla, Keshod, Deesa, Porbandar, Rajkot, Surat, Vadodara, Mundra, Mandvi and
        Palanpur.

 Source: Director Civil Aviation, Government of Gujarat, News articles

18       Gujarat                                                                                       For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – AIRPORTS…(2/2)

                   Aircraft movement in Ahmedabad (nos.)                                                                        Passenger traffic in Ahmedabad (million)

       70,000                                                                                                  10

                                                                                                               9

                                                                                                                                                                                                                       9.17
                                                                                                     63,129
       60,000
                                                                                                               8

       50,000                                                                                                  7

                                                                                                                                                                                                           7.40
                                                                                           51,107
                                                                                 47,195

                                                                                                                                                                                               6.48
                                                                                                               6
       40,000
                                                             42,229
                                         40,506

                                                                       38,797
                                                   38,289

                                                                                                               5

                                                                                                                                                                                   5.05
                               34,685
                     33,753

       30,000

                                                                                                                                               4.70

                                                                                                                                                                       4.56
                                                                                                               4

                                                                                                                                                           4.16
                                                                                                                                   4.04
                                                                                                                    3.53
       20,000                                                                                                  3

                                                                                                               2
       10,000
                                                                                                               1

              0                                                                                                0
                     2009-10

                               2010-11

                                         2011-12

                                                   2012-13

                                                             2013-14

                                                                       2014-15

                                                                                 2015-16

                                                                                           2016-17

                                                                                                     2017-18

                                                                                                                      2009-10

                                                                                                                                     2010-11

                                                                                                                                                 2011-12

                                                                                                                                                             2012-13

                                                                                                                                                                         2013-14

                                                                                                                                                                                     2014-15

                                                                                                                                                                                                 2015-16

                                                                                                                                                                                                             2016-17

                                                                                                                                                                                                                         2017-18
 Source: Airports Authority of India, ^for the period April to March 2018

19     Gujarat                                                                                                                             For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – PORTS … (1/2)

       The state has one of the strongest port infrastructures in India. It is
         the first state in India to take up port privatisation. Gujarat has 42
         ports, including one major port at Kandla and 41 minor ports, along a
         1,600 km coastline.

       GMB, which manages 41 non-major ports, has developed port
                                                                                      Jakhau              Kandla
         privatisation models such as private/joint sector ports, private jetties,             Mundra
                                                                                                               Navlakhi
         captive jetties and GMB jetties.
                                                                                                             Bedi                       Khambhat
                                                                                     Okha
                                                                                                         Sikka
       During 2018-19* Deendayal (Kandla) port handled 93.23 million                          Positra                      Dholera
         tonnes of cargo traffic.                                                                                      Bhavnagar             Dahej
                                                                                                      Porbandar            Mithivirdi         Magdalla
       As per Budget 2018-19, the state government has made a provision
                                                                                                                           Mahuva             Hazira
        of US$ 221 million for the port and transport department.                                          Simar
                                                                                                                                               Vansi
       During 2018-19, Essar ports will invest Rs 4.5 billion (US$ 63 million)                Sutrapada                       Pipavav         Borsi
        in Hazira port in Gujarat to increase the cargo-handling capacity of                               Veraval        Jafrabad             Maroli
        the port to 50 million tonnes (MT), current capacity of the port, is 30
        MT, raising the company’s capacity to 110 MT.

                                                                                        Major ports                 Private sector ports             GMB ports

     Note: * up to April 2018
     Source: Indian Port Association, Ministry of Shipping

20        Gujarat                                                                                   For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – PORTS … (2/2)

      Gujarat has 2 LNG terminals that offer transportation facilities for                Traffic handled by Kandla port (million tonnes)
        natural gas, crude oil & petroleum products from the Middle East and                           2011-12                              82.50
        Europe.
                                                                                                       2012-13                              93.62

      The state has a vast hinterland surrounded by the northwest markets                             2013-14                              87.00

        of Rajasthan, Delhi/NCR & Punjab. Together, these areas generate                               2014-15                              92.50

        approximately 60 per cent of India's cargo, of which a majority is                             2015-16                             100.05
        currently handled by the ports of Gujarat. The state has a large
                                                                                                       2016-17                             105.44
        external trade potential, given its vast coastline.
                                                                                                       2017-18                              90.99

      There is an increase in connectivity to non-major ports due to                                  2018-19^                             93.23
        development of the Delhi-Mumbai Dedicated Freight Corridor.
                                                                                           Key private sector stakeholders in Gujarat's ports sector
      More than 4,800 ships and 1,000 sailing vessels visit the ports of                   Adani Ports and Special Economic Zone Ltd
        Gujarat every year.
                                                                                            Peninsular & Oriental Steam Navigation Company

      Private jetties in the state handled a total cargo traffic of 3.12 million           Gujarat Pipavav Port Limited

        tonnes    in 2017-18*. Captive jetties handled total cargo of 159.9                 Reliance Industries Limited
        million tonnes along with the coastline of Gujarat cargo handled                    Maersk
        during 2017-18* was around 110.07 million tonnes.                                   Welspun

                                                                                            Petronet LNG

                                                                                            Shell
 Note: * up to November 2017, ^ up to April 2018
 Source: Indian Port Association. Ministry of Shipping, Gujarat Economic Review, 2017-18

21      Gujarat                                                                                              For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER AND
                      GAS … (1/2)

      As of April 2018, Gujarat had an installed power generation capacity of                         Installed power capacity (MW)
        30,794.32 MW (comprising 7,707.82 MW under state utilities,
        18,774.69 MW under private utilities & 4,311.81 MW under central            35,000

        utilities).
                                                                                    30,000

                                                                                                                                                                                       30,794

                                                                                                                                                                                                 30,794
                                                                                                                                                                             30,716
                                                                                                                                                                   30,189
                                                                                                                                                         28,960
      Thermal power contributed 22,168.80 MW to the state’s total installed

                                                                                                                                               27,420
                                                                                    25,000

                                                                                                                                     26,414
        power generation capacity, followed by a contribution of 772 MW by

                                                                                                                           21,918
                                                                                    20,000
        hydropower, 559.00 MW by nuclear power & 7,295.32 MW by
        renewable power.                                                            15,000

                                                                                                                 15,723
                                                                                                       13,908
      Power capacity of 600 MW Solar Power Stations have been

                                                                                             12,110
                                                                                    10,000
        commissioned by 31 developers in Gujarat Solar Park. Further power
                                                                                     5,000
        capacity of 175 MW is under planning with an estimated cost of Rs.
        755 crore (US$ 117.15 million).                                                  0

                                                                                             2008-09

                                                                                                       2009-10

                                                                                                                 2010-11

                                                                                                                           2011-12

                                                                                                                                     2012-13

                                                                                                                                               2013-14

                                                                                                                                                         2014-15

                                                                                                                                                                   2015-16

                                                                                                                                                                             2016-17

                                                                                                                                                                                       2017-18

                                                                                                                                                                                                 2018-19*
      GSPC Gas Company Ltd, a distribution arm of Gujarat State
        Petroleum Corporation Ltd, supplies 4.33 MMSCMD of gas to more
        than 1,047,665 domestic households, 11,559 commercial & non-
                                                                                  In the state budget for 2018-19, US$ 1.31 billion was allocated to
        commercial customers, 255 CNG stations & 2,931 industrial
                                                                                   the Energy & Petrochemical Department.
        customers in the state.

 Note: * - till April 2018, ^ Up to October 2017
 Source: Central Electricity Authority, Gujarat Economic Review, 2017-18

22      Gujarat                                                                                        For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER AND
                   GAS … (2/2)

      Gujarat has the most developed gas pipeline network in the country,                 GAIL primarily serves consumers who have been allocated natural
        which is operated by GSPL, GGCL and GAIL.                                             gas by the Ministry of Petroleum and Natural Gas. Its pipeline
                                                                                              network can be divided into three sections: South Gujarat Network,
      Provision of US$ 29.13 million was channelled towards installation of
                                                                                              North Gujarat Network and ex-Hazira.
        15,000 solar domestic energy systems and providing around 3,210
        solar pumps for agriculture purpose across the scattered areas of the              GSPL is the nodal agency responsible for setting up a gas grid in
        state, during 2016-17.                                                                Gujarat, operating on common carriage basis. In 2015-16, the
                                                                                              company carried out the construction of a 366-km long pipeline and
      For the provision of free power supply to the water works of each
                                                                                              gas compressor station at Gana, Gujarat, with a pipeline capacity of
        voluntary organization and gram panchayat of the state, the state
                                                                                              14 mmscmd.
        government has proposed an allocation of US$ 62.08 million during
        2017-18.                                                                           GGCL currently operates a 1,550 km and 350 km under
                                                                                              construction/development pipeline network. It is planning to set up a
     GSPL’s integrated gas-grid
                                                                                              pipeline network of about 3,000 km in Gujarat.

     Current transmission                                     24.85 mmscmd
                                                                                           GCL has a total gas pipeline length of about 2,700 km and services
     Operational pipeline                                         2,454 km                    230,000 customers.

     Under construction pipeline                                   69 km

 Source: Gujarat Economic Review, 2017-18, State Budget 2016-17, GSPL-Gujarat State Petronet Ltd., GGCL-Gujarat Gas Company Ltd., GAIL-Gas Authority of India Ltd., MMSCMD:
 Million metric standard cubic metres per day.

23      Gujarat                                                                                                 For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – TELECOM

                                                                                           Performance status of BharatNet (National Optical Fibre
     Telecom infrastructure (as of March 2018)
                                                                                           Network) Project (as of April 2018)

      Wireless subscribers^                                      71,922,687                No. of GPs in Phase-I                                  6,905

      Wire-line subscribers                                      1,268,577                 Pipe laid (kms)*                                       6,370

      Internet subscribers1                                      28,800,000                Cable laid (kms)                                       13,186

      Post offices2                                                 8,927                  GPs for which cable laid                               5,705

      Tele-density (in%)                                           112.44                  No. of GPs lit*                                         116

      As of December 2017, the state had 28.80 million internet subscribers.

      According to Telecom Regulatory Authority of India (TRAI), as of March 2018, Gujarat had 71.92 million wireless connections and 1.27 million
        wire-line subscribers.

      By the end of March 2018, 24,513,496 subscribers had submitted request for mobile number portability in Gujarat.

      The Government of India has approved Rs. 1,652.97 crore (US$ 256.47 million) through Department of Telecommunications for implementation of
        BharatNet Phase-II in 7295 (6916 of Phase II + 379 from Phase-I) Gram Panchayats of Gujarat.

 Note: 1 As of December 2017, 2 As of March 2018 GP-Gram Panchayats, 1 As of December 2017, * As of February 2018 , ^ As of March 2018
 Source: Telecom Regulatory Authority of India, Ministry of Communications & Information Technology. Gujarat Economic Review, 2017-18.

24      Gujarat                                                                                                  For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – URBAN… (1/2)

       With household income of more than US$ 1.9 billion by 2018, Surat       Classification of AMRUT Cities (Funds allocated, committed
          is expected to emerge as a new metro in India.                        and sanctioned by central) (US$ million)

                                                                                                           Total
       Gujarat has 8,188 villages and 159 towns connected with Narmada-                                                Committed       Sanctioned
                                                                                                        Allocation
          based Water Supply Grid through Bulk Pipeline and Distribution
                                                                                Fund under AMRUT
                                                                                                          757.86          321.17           321.17
          Group network.                                                        Program*

                                                                                Total number of
       In order to develop and improve urban areas of Gujarat, the state                                                     31
                                                                                AMRUT cities
          government has announced plans to invest US$ 1.93 billion as per
          the budget 2018-19. For construction of individual, community and
          public toilets and solid and liquid waste management, the
          Government of Gujarat has announced plans to invest US$ 108.12         The Government of Gujarat allocated US$ 791.5 million in the budget

          million during 2018-19.                                                 for 2017-18 under Sardar Sarovar Yojna. Further, a provision of US$
                                                                                  2.03 billion has also been made for the water resources and Kalpsar
       Under the Mahatma Gandhi National Rural Employment Guarantee              division out of which US$ 628 million has been allocated for the tube
          Scheme (MGNREGS), 19,892 check dams were constructed in                 well/canal based lift irrigation schemes.
          Gujarat. As per the state budget for 2017-18, US$ 43.31 million was
          allocated by the state government for improving and reinforcing the
          network of existing canals in the state.

     Note: * As of April 2018
     Source: Economic Survey of Gujarat 2015-16 State Budget 2016-17

25        Gujarat                                                                                  For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – URBAN … (2/2)

      Six cities in Gujarat, namely Ahmedabad, Surat, Vadodara, Rajkot,     Smart Cities in Gujarat
       Dahod and Gandhinagar are shortlisted to be transformed into smart
                                                                             Cities            Population      Area (sq km)      Literacy rate
       cities under the central government’s Smart City Mission.
                                                                             Ahmedabad          7,214,225          8,107           85.31%
      The state will receive an amount of around US$ 0.49 billion for the   Gandhinagar        1,391,753          2,140           84.16%
       development of smart cities. A large number of projects are
                                                                             Rajkot             3,804,558          11,198          80.96%
       anticipated to be established under the mission.
                                                                             Surat              6,081,322          4,549           85.53%

      As per state budget 2016-17, the two major cities of Gujarat i.e.,    Vadodara           1,602,424          148.95          78.92%
       Surat and Ahmedabad have been selected by the Government of           Dahod                94,578             23              NA
       India in the first phase of Smart City Mission, during 2015-16.

      The Government of India has released US$ 28.14 million to the state
       under AMRUT scheme in 2017-18. The scheme covers 31 cities in
       the state.

      As of December 2017, Ahmedabad had utilized the 40.89 per cent of
       the funds provided for smart city related projects.

 Source: TechSci Research

26      Gujarat                                                                               For updated information, please visit www.ibef.org
Gujarat

SOCIAL
INFRASTRUCTURE
SOCIAL INFRASTRUCTURE – EDUCATION

      Gujarat has a literacy rate of 78.03 per cent; the male literacy rate is
                                                                                                                                   No. of seats in technical education 2017-18 (P)
        85.80 per cent and the female literacy rate is 69.70 per cent.

      Gujarat’s   government                  set           up          Indian         Institute       of          Information    Engineering                                          68,113

        Technology college near Vadodara approved by Central government.                                                           MBA                                                  9,870

        The IIT (Vadodra) based on a public-private partnership model.                                                             Pharmacy                                             5,675
                                                                                                                                   MCA                                                  5,410
      In order to improve the education infrastructure in the state, the
        Government of Gujarat announced plans to invest US$ 4.25 billion in                                                        Architecture                                         1,680

        2018-19 under planned and non-planned expenditure for the
        Education sector.                                                                                                          No. of seats in diploma courses 2017-18 (P)

            Funds released for Primary Education (US$ million)
                                                                                                                                   Engineering                                        69,952

        140.00                                                                                                                     Pharmacy                                            580
        120.00
                                      121.76

                                                                                               120.62

        100.00                                                                                                                     Literacy rates (per cent)
                                                                 95.52

         80.00
         60.00
                                                                                                                           71.52
                    69.49

                                                                                                                                   Literacy rate                                      78.00
                                                                             63.24
                                               59.04

         40.00
                                                                                                        50.01

         20.00                                                                                                                     Male literacy                                      85.80
           0.00
                            2014-15

                                                       2015-16

                                                                                     2016-17

                                                                                                                2017-18*

                                                                                                                                   Female literacy                                    69.70

                                        MDM Scheme                       SSA Programme

 Note: (P) = Provisional, * As of (as on December 2017.
 Source: Census 2011, Gujarat Economic Review, 2017-18, State Budget 2018-19 , Loksabha

28      Gujarat                                                                                                                                      For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH

      Gujarat is at the forefront of establishing & maintaining a good                  Health infrastructure (as of May 2018)
        health infrastructure.
                                                                                         Primary health centres                                     1,984
      Gujarat’s health infrastructure facilities have 1,984 primary health
                                                                                         Sub-centres                                                9,617
        centres, 9,617 sub-centers, 2,544 community health centres, 375
        sub district hospital, 50 district hospital                                      Community health centres                                   2,544

      In the state budget for 2018-19, US$ 1.5 billion has been allocated               Sub District Hospital                                       375

        by the state government for Health & Family Welfare department                   District Hospital                                            50
        under Plan & Non-Plan expenditure.

      Under medical services, the following provisions have been made                   Key health schemes of Gujarat government
        for 2017-18:                                                                      Chiranjeevi Scheme

                                                                                          Bal Sakha Yojna
        •   Provision of US$ 20 million upgradation and modernization of
                                                                                          Mukhyamantri Amrutam Yojana (MA Yojana)
            civil hospital Ahmedabad.
                                                                                          Centre-aided Health Insurance Scheme
        •   Provision of US$ 6.21 providing free treatment to BPL and lower
                                                                                          Rogi Kalyan Samiti
            income families at cancer, kidney and cardiac public institutions.

        •   Provision of US$ 15.52 million under Medical Policy 2016.

 Source: Gujarat Economic Review, 2017-18, Health Management Information System, State Budget 2018-19

29      Gujarat                                                                                              For updated information, please visit www.ibef.org
Gujarat

INDUSTRIAL
INFRASTRUCTURE
INDUSTRIAL INFRASTRUCTURE

      Gujarat has 106 product clusters. The Cluster Development Scheme                    Product clusters

        has been launched for furthering the growth of product clusters.

      Some of the successful clusters include ceramics cluster at Morbi,                                                                        Agro Processing
                                                                                                            Soda ash and salt-based
        brass-parts cluster at Jamnagar, fish-processing cluster at Veraval                             industries, cement and steel pipes               Mehsana

        and power-looms cluster at Ahmedabad.                                                                Kachch

                                                                                                                        KANDLA                              Gandhinagar
                                                                                                                                        Petroleum and
                                                                                                                                         brass parts     Ahmedabad
      There are 13 major industry groups that together account for around                                                      Morbi
                                                                                                           MUNDRA                                        Chemicals, Petrochemicals,
                                                                                                    Okha
        82.05 per cent of total factories, 95.85 per cent of total fixed capital                                                         Surendranagar       Pharma, Textiles
                                                                                                                                                          Anand
                                                                                                                            Rajkot
        investment, 90.09 per cent of the value of output & 93.21 per cent of                                   Engineering                                                  Vadodara
                                                                                                                and ceramics
        value addition to Gujarat’s industrial economy.                                                          Jamnagar                                    DAHEJ    Ankleshwar
                                                                                                                                 Amreli         Bhavnagar
                                                                                                                                   Soda ash and
      Gujarat is a leader in industrial sectors such as chemicals,                                                            salt-based industries                      Surat
                                                                                                                   Sutrapada
        petrochemicals, dairy, drugs, pharmaceuticals, cement, ceramics,                                                                                     HAZIRA         Navsari
                                                                                                                          Kodinar
                                                                                                                                           PIPAVAV
        gems, jewellery, textiles & engineering.                                                                                                             Valsad

      The industrial sector of the state comprises of around 603,000 micro,
        small & medium industries which provide employment to about                        The state has announced an Incentive program for the Industries
        3,851,000 people.                                                                     (General) from 2016-2021 in accordance with the New Industrial
                                                                                              Policy of 2015. The scheme aims to attract increased investments to
      In budget 2018-19, state government announced plans to invest US$
                                                                                              the state in the manufacturing sector to create more employment
        682.2 million for the growth of industrial sector of Gujarat.
                                                                                              opportunities.

 Source: Industries Commissionerate, Government of Gujarat Socio-Economic Review of Gujarat, 2015-16, State Budget 2018-19, MSME: Micro, Small & Medium Enterprises, GIDC:
 Gujarat Industrial Development Corporation,

31      Gujarat                                                                                                    For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE - SEZS… (1/2)

      Gujarat ranks first in terms of total area covered under SEZs in          Sector-wise operational SEZs in Gujarat (As of December 2017)
       India. It is also a leading SEZ state with the highest geographical
       area of 29,423.9 hectares under SEZ development. As of March 10,
       2015, the total utilised area of notified SEZs in Gujarat stood at                                           Multi-Product

       6,818.58 hectares.                                                                                           IT/ITeS
                                                                                           5.54%
                                                                                       5.56%                        Apparel
      As of March 2018, Gujarat has a total of 74 SEZs, comprising 19
                                                                                     5.56%
       operational SEZs, 28 SEZs having formal approvals, 24 notified                                  33.33%
                                                                                   5.56%                            High Tech Engineering Products &
       SEZs. 1 Central government SEZ set up prior to SEZs Act, 2005 & 2                                            Related Services
                                                                                   5.56%
                                                                                                                    Chemicals
       state government/private sector SEZs set up prior to SEZs Act,              5.56%
       2005.                                                                                                        Pharmaceuticals
                                                                                      11.11%
                                                                                                 22.22%
                                                                                                                    Engineering Goods
      Gujarat has 19 operational SEZs namely, Kandla SEZ, Surat SEZ,
       Surat Apparel Park, Surat Special Economic Zone, Adani Port and                                              Non-Conventional Energy

       Special Economic Zone, Dahej SEZ Ltd., Jubilant Infrastructure Ltd.,
                                                                                                                    Multi-Service
       E Complex Pvt. Ltd., Zydus Infrastructure Pvt. Ltd., Euro Multivision
       Pvt. Ltd., Reliance Jamnagar Infrastructure Ltd., GIDC Apparel Park
                                                                                Gujarat is the first state to formulate an SEZ policy, which includes
       Ahemdabad, Sterling SEZ Pvt. Ltd., Aqualine Properties Pvt. Ltd.
                                                                                  flexible labour laws and exit options for investors. SEZs in Gujarat
       Gandhinagar, L&T Ltd., Vadodra, Tata Consultancy Services Ltd.,
                                                                                  receive a 10-year corporate tax holiday on export profits (100.0 per
       Gandhinagar, GIFT Multi-Service SEZ, Electronic Park SEZ and
                                                                                  cent for the initial five years and 50.0 per cent for the next five
       Synefra Engineering. & Construction Ltd.
                                                                                  years).

 Source: Ministry of Commerce & Industry, Government of India

32      Gujarat                                                                                    For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE - SEZS… (2/2)

                        Surat SEZ exports (US$ billion)                                                        Kandla SEZ exports (US$ million)

        9.0
        8.0                                                                                       800
        7.0               7.8                                                                     700                                                    752
        6.0                                                                                       600                                    646     655
                                                                                                                         601     627
        5.0                                                                                       500            545
        4.0     4.6                 4.5                                                           400    461
        3.0                                                                                       300
        2.0                                                       3.2
                                                        2.4                 2.5                   200
        1.0                                   1.8
                                                                                                  100
        0.0
              2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18                               0
                                                                                                        2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

      Surat accounts for more than 120 units of SEZs and supplies products to various locations around the world. Some of the key clients of the Surat
        SEZ include Adorn Gioielli, Flexit Laboratories Pvt Ltd., Priyank Cord & Tassels Ind. Ltd., Flair Impex Corporation and Pidilite Industries.

      Other large SEZs in Gujarat include M/s. Adani Port & Special Economic Zone Limited., M/s. Reliance Industries Ltd. and Sterling SEZ &
        Infrastructuring Ltd.

      In 2017-18, 264 units operate in Kandla and export products across the globe. The employee strength in Kandla SEZ is around 25,433.

      For FY17, Gujarat’s SEZ export reported around 30 per cent of overall national SEZ export, increased by nearly 4 per cent.

 Source: Ministry of Commerce & Industry, Government of India, Gujarat Economic Review, 2017-18

33      Gujarat                                                                                                  For updated information, please visit www.ibef.org
Gujarat

KEY SECTORS
  Agro & Food Processing

  Textiles and Apparel

  Gems and Jewellery

  Oil and Gas

  Pharmaceuticals and Biotechnology
KEY SECTORS – AGRO & FOOD PROCESSING … (1/4)

      Gujarat accounts for the largest share in the total investments in the                                        Gujarat's position in         Share of world
                                                                                           Crop
                                                                                                                      world production             production (%)
        food processing sector of India.
                                                                                           Castor seeds                            1                      41

      Cotton, groundnut, bajra, paddy, maize, jowar, sesamum, castor &                    Fennel                                  1                      67
        tur (pigeon pea), along with fodder & vegetables, are the major kharif
                                                                                           Isabgul                                 2                      35
        crops in the state. Normal area under kharif cultivation is 8.6 million
                                                                                           Cotton                                  8                     3.5
        hectares.

      During 2016-17, there are 224 Agriculture Produce Market
        Committees (APMCs), 224 Main Yards of Market Committees and
        180 Sub Market Yards operational in 33 districts of the state.
                                                                                           Agri Export Zones Projects in Gujarat

      GAIC promotes agricultural activities at the ground level & aids the                 Mango and vegetables
        development of agro industries in the state.                                        Value added onions

                                                                                            Sesame seeds
      To provide an impetus to the development of farmers, Gujarat
        announced ‘Agro Business Policy 2016-21’. Food processing units                      In the budget 2018-19 for the state of Gujarat, an outlay of US$
        and agriculture infrastructural projects would be provided with                        1043.4 million was allocated for the Agriculture, Co-operation and
        various kinds of assistance to ensure that the crops and fruits                        farmer Department. Initiatives for the agro & food processing sectors
        cultivated in the state last longer and get exported on a large scale.                 include: Provision of US$ 61.01 million for the Rashtriya Krishi Vikas
                                                                                               Yojana. Allocation of US$ 59 million for the development of fisheries

 Source: Vibrant Gujarat, APMC-Agriculture Produce Market Committees, GAIC-Gujarat Agro Industries Corporation, Gujarat Economic Review, 2017-18

35      Gujarat                                                                                                   For updated information, please visit www.ibef.org
KEY SECTORS – AGRO & FOOD PROCESSING … (2/4)

       In April-February 2018, agricultural exports from Gujarat were valued    Exports (US$ million)
         at US$ 4.10 billion.
                                                                                 Crop                                             2017-18*
       Gujarat’s dairy sector consists of 17 district milk producers’ unions,
                                                                                 Fruits and Vegetable seeds                         1.30
         with around 14,598 milk co-operative societies.
                                                                                 Fresh Onions                                       3.40
       The state’s milk production, which stood at 12.78 million tonnes
                                                                                 Pulses                                             36.88
         during 2016-17, was the third largest state in India with 7.9 per
         cent of India’s share.                                                  Dairy Products                                     24.83

      Key districts in the dairy sector                                          Walnuts                                            0.03

                                                                                 Maize                                              5.22

                                                                                 Wheat                                              13.15
                                                   Gandhinagar
                                                                                 Other Cereals                                      19.24

                                       Ahmedabad                                 Groundnut                                         312.36
                                                           Anand
                                                                                  Under Dairy Development Schemes and National Programme for
                                                                                   Dairy Development (NPDD), the central government released US$
                                                                                   0.2 million for the growth of dairy processing industries in Gujarat.

     Note: As of April-February 2018

36        Gujarat                                                                                  For updated information, please visit www.ibef.org
KEY SECTORS – AGRO & FOOD PROCESSING … (3/4)

     Agricultural production (thousand tonnes)                                                 Agricultural area (thousand hectares)

     Crop                                        2016-17                       2017-18*        Crop                                           2016-17         2017-18*

     Rice                                           1,929                          1,762       Rice                                                  837           805

     Wheat                                          2,737                          3,040       Wheat                                                 995          1,053

     Jowar                                             150                           101       Jowar                                                 106             75

     Bajra                                             931                           247       Bajra                                                 431           156

     Total Foodgrains                               7,420                          6,688       Total Foodgrains                                  3,803            3,416
             1                                                                                         1
     Cotton                                         5,043                        12,746        Cotton                                            2,382            2,646

     Groundnut                                      2,944                          3,206       Groundnut                                         1,760            1,596

     Total Oilseeds                                 4,576                          4,932       Total Oilseeds                                    2,776            2,641

      As per the budget 2018-19, an allocation of US$ 1.03 billion has been made to the Agriculture, Cooperation and allied activities sector.

      In May 2017, Indian government inaugurated a pumping station at Bhachau, which is built for Kutch region on the Narmada canal. The pump
        station will be used to provide drinking water to 14 towns, 877 villages in addition to providing irrigation to about 280,000 acres of farm land
        spread across 182 villages.

 Note: * Second advance estimate
 Source: Ministry of Agriculture, National Horticulture Board, Gujarat Economic Review, 2017-18, State Budget 2018-19, 11,000 bales (170 kgs each)

37      Gujarat                                                                                                        For updated information, please visit www.ibef.org
KEY SECTORS – AGRO & FOOD PROCESSING … (4/4)

     Key players in agro and food processing industry

                                Anand Milk Union Limited (AMUL) was established in 1946 in Anand, Gujarat. Amul is a market leader in butter,
                                 whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long-life milk. In August 2015,
                                 dairy major Amul announced plans to invest US$ 124 million for increasing its cheese manufacturing capacity
                                 from 40 tonnes to 120 tonnes.
             Amul

                                Parle Products Pvt Ltd has been India's largest manufacturer of biscuits and confectionery for almost 80 years.

                                Brands include Parle-G, Krackjack, Monaco, Hide and Seek, Poppins, Melody and Mango Bite.

                                The company has a factory at Bhuj, Gujarat.
     Parle Products Pvt Ltd

                                Vadilal was established in 1907 at Ahmedabad. The company manufactures ice-creams and frozen desserts. In
                                 October 2013, Vadilal was rated as India's second most attractive food & beverage brand by TRA.
                                Exports processed products. One manufacturing plant at Pundhra in Gandhinagar, second in Bareilly, Uttar
                                 Pradesh, and third in Dharampur, Surat.
            Vadilal

                                Rasna was formed in 1984, and has around 93.0 per cent market share in the powdered Indian soft drink
                                 concentrate market.
                                The company has a wide range of products in the processed-foods category such as fruit jams, energy sports
                                 drink powder, fruit cordial, rose syrup and iced tea.
                                Rasna has the largest capacity in Asia to make powder concentrates, with seven facilities spread across India.
             Rasna               The company is based in Ahmedabad.

38     Gujarat                                                                                 For updated information, please visit www.ibef.org
KEY SECTORS – TEXTILES AND APPAREL … (1/3)

      As per the Government of Gujarat’s survey report, technical textiles                            Cotton production in Gujarat (million bales of 170 kg each)
        is a key emerging area, with over 860 units in Gujarat.
                                                                                                      14.00
      The textile industry contributes around 6 per cent to the total                                12.00                                                     12.75
        industrial production in the state (organised sector). Gujarat is the                         10.00               10.95     10.50
        largest producer of denim in India (65-70 per cent) and the third-                              8.00    8.85                          9.40
                                                                                                                                                        8.58
                                                                                                        6.00
        largest producer in the world.
                                                                                                        4.00
                                                                                                        2.00
      Surat is the largest manufacturing centre of silk fabric and produces
                                                                                                        0.00
        over 40 per cent of silk in the country. About 24-28 per cent of fixed                                 2012-13   2013-14   2014-15   2015-16   2016-17 2017-18*
        investment, production value and employment of SSI is from the
        textiles sector. Gujarat has extended full support to entrepreneurs
        who want to invest in the technical textile market in the state.

      In 2014, state Government of Gujarat introduced textile policy. In
        order to promote the textile policy in the state, Gujarat state
        government had allocated US$ 88.44 million for implementation of
        this policy under budget 2017-18.

 Source: Ministry of Textiles, SSI – Small Scale Industries, News articles, * as per 2nd Advance Estimates.

39      Gujarat                                                                                                        For updated information, please visit www.ibef.org
KEY SECTORS – TEXTILES AND APPAREL … (2/3)

      On the basis of capital investments worth US$ 2.3 billion, the textile   Investment opportunities

        policy of Gujarat has been successful in providing large scale           Conventional textiles

        employment opportunities in the state.                                    •   Ginning and pressing
                                                                                  •   Cotton & synthetic based spinning, weaving & processing units,
      The Government of Gujarat has introduced various schemes to                    cotton knitwear
        provide assistance in the form of:                                        •   Terry towel/home furnishing
                                                                                  •   High valued garment manufacturing
        •   Interest subsidy, power tariff and VAT exemption.
                                                                                 Technical textiles
        •   Support to technical textiles.
                                                                                  •   Protective textiles
        •   Assistance for energy conservation, water conservation and            •   Agro textiles
            environmental compliance to the existing unit.                        •   Geo textiles
                                                                                  •   Automotive textiles
        •   Assistance for technology.
                                                                                  •   Home textiles
        •   Acquisition and upgradation.
                                                                                 Infrastructure development
        •   Assistance for apparel training institutions and trainees.            •   Cotton Integrated Textile and Apparel Park

      The state government has announced plans for the setting up of
        brown and green field projects to facilitate environment friendly
        processing standards in the textile units of the state.

 Source: Industrial Extension Bureau (A Government of Gujarat organisation)

40      Gujarat                                                                                       For updated information, please visit www.ibef.org
KEY SECTORS – TEXTILES AND APPAREL … (3/3)

     Key players in textiles and apparel industry

                                  One of the largest producers of denim in the world and largest producer in Asia. Product line includes fabrics
                                   (denims, shirtings, khakis and knitwear) and garments. Asia’s first fabric-manufacturing unit to receive an ISO-
                                   14001 certification.
           Arvind Ltd

                                  100 per cent cotton-fabric manufacturers and a vertically integrated group. It has its registered office at
                                   Ahmedabad. Exports fabric to over 45 countries, markets to over 150 Indian garment exporters.

         Ashima Group

                                  Part of the S.K. Birla Group, the company was established in Jamnagar, Gujarat in 1948. The company
                                   manufactures fabrics for suiting and casual wear. It has restructured its business portfolios to focus on textile
                                   manufacturing and marketing of fabrics and ready-to-wear clothing under its own brands.

           Digjam Ltd

                                  With over 60.0 per cent market share in India, Raymond is one of the largest integrated manufacturers of worsted
                                   fabric in the world. The group is into textiles, engineering and aviation.

                                  Raymond Apparel Limited is a 100 per cent subsidiary of Raymond Limited. The plant at Vapi in Gujarat has a
                                   production capacity of 14 million metres per annum.
         Raymond Ltd

41      Gujarat                                                                                 For updated information, please visit www.ibef.org
KEY SECTORS – GEMS AND JEWELLERY… (1/2)

      Gujarat accounts for around 72 per cent of the world’s share of            Investment opportunities

        processed diamonds and more than 80 per cent of diamonds                   Jewellery fabrication
        processed in India. It also accounts for 95 per cent of diamonds           White gold
        exported from India. About 90 per cent of diamonds in Gujarat are
                                                                                   Platinum jewellery
        processed by about 10,000 diamond units located in and around
                                                                                   Paved diamond jewellery
        Surat.
                                                                                   Studded jewellery

      Eight out of 10 diamonds in the world are polished in Surat. The state
        has the highest labour productivity in the jewellery sector, with major   Infrastructure development

        jewellery clusters at Ahmedabad, Surat and Rajkot.                         Jewellery manufacturing units

                                                                                   Assaying and hallmarking centres
      It is also internationally renowned for the production of unique
                                                                                   Gold refinery
        hand-made silver ornaments (85 per cent of total silver jewellery
                                                                                   Diamond park
        production of India).

      Renowned institutions such as the Indian Diamond Institute, Gujarat        Jewellery retail

        Hira Bourse, and the Gems and Jewellery Export Promotion Council           Luxury Products such as watches, brooches, clocks
        provide skilled manpower for the industry.

 Source: Industrial Extension Bureau (A Government of Gujarat organisation)

42      Gujarat                                                                                      For updated information, please visit www.ibef.org
KEY SECTORS – GEMS AND JEWELLERY… (2/2)

     Key players in gems and jewellery industry

                                 Sanghavi Export’s core business is exporting polished diamonds and diamond studded jewellery, and
                                  manufacturing diamonds and jewellery.

                                 It boasts of a large network of marketing offices worldwide, from the US to Hong Kong, Belgium to Japan,
                                  Australia to Canada, and Singapore to the European nations.

                                 The company’s well-equipped hi-tech diamond manufacturing factory, Sanghavi Diamond Mfg Pvt Ltd at Surat, is
       Sanghavi Exports           one of the largest units in Asia.

                                 Venus Jewel is a partnership firm established in 1969, specialising in manufacturing large-sized premium
                                  diamonds.

                                 The company deals in sizes from 0.50 to 15.00 carats in an expensive array of shaped diamonds of exceptional
                                  symmetry and polish.
          Venus Jewel

                                 Forever Diamonds is a manufacturer and exporter of diamond jewellery.

                                 The company deals in loose diamonds, diamond jewellery and gold jewellery.

       Forever Diamonds

43     Gujarat                                                                               For updated information, please visit www.ibef.org
KEY SECTORS – OIL AND GAS … (1/2)

      Gujarat is a preferred destination for MNCs like BASF, Bayer,                         Key locations            Oil and gas companies

       DuPont, GE Plastics, Solvay, Cairn Energy, Shell, British Gas, etc.                                            Reliance Industries refinery: Largest grassroots
                                                                                             Jamnagar                 refinery in the world;
                                                                                                                      Essar Refinery
      Gujarat is known as India’s chemicals and petrochemicals hub. The
       state has eight chemical clusters, 14 industrial estates and three                    Dahej                    Petronet LNG’s re-gasification terminal

       SEZs, which are primarily dedicated to the chemicals and                              Hazira                   Shell and Total’s LNG terminal
       petrochemicals industry. Oil and gas reserves are located at
                                                                                             Vadodara                 Indian Oil Corporation’s refinery
       Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej,
       Jambusar, Palej and Kalol. Isolated gas fields are located around                     Gandhar                  ONGC’s gas processing complex
       Ahmedabad.

                                                                                             Investment opportunities
      In March 2018, Indian Oil owned Gujarat refinery of Vadodara city
                                                                                              Oil & gas refining
       will invest about Rs 24,174.00 crore (US$ 3.75 million) on new
       projects and expansions till 2022 which includes capacity expansion                    Gas distribution

       to 18 MMTPA, these will generate huge employment in the state.                         Investments in PCPIR are incentivised

                                                                                              Gujarat consists of 47 per cent of total domestic gas connections in
                                                                                                the country.

                                                                                              Gujarat, with Maharashtra and Delhi, accounts for 96 per cent of
                                                                                                domestic connections of piped natural gas and 92 per cent of
                                                                                                commercial connections.
 Note: As per latest data available
 Source: Industrial Extension Bureau Ministry of Petroleum & Natural Gases, Gujarat Economic Review, 2017-18

44      Gujarat                                                                                                   For updated information, please visit www.ibef.org
KEY SECTORS – OIL AND GAS … (2/2)

     Key players in oil and gas industry

                                 IOCL is India's largest integrated oil refining and marketing company by sales. It is the 18th largest petroleum
                                  company in the world. It owns and operates 10 of India’s 22 refineries; the company had a refining capacity of
                                  65.7 million metric tonnes per annum (MMTPA) (1.3 million barrels per day).
       Indian Oil Corp Ltd       The refinery at Koyali is IOCL’s largest with a capacity of 18 MMTPA.
             (IOCL)

                                 The company operates the largest oil producing fields in the Indian private sector. Cairn India holds material
                                  exploration and production positions in 11 blocks in west and east along with new exploration rights elsewhere in
                                  India and one in Sri Lanka. CIL plans to invest $3 billion over three years, with 80 per cent of capex in the Barmer
                                  oil block.

           Cairn India           In April 2017, Cairn India merged with Vedanta Ltd to form US$ 15.6 billion market capital.

                                 ONGC is India’s leading exploration and production company for oil and gas. It has 240 onshore production
                                  installations, 77 drilling rigs and a 26,598 km pipeline network. ONGC has a plant at Hazira; assets in Mehsana,
                                  Ahmedabad and Ankleshwar.

                                 The company has the Institute of Reservoir Studies (IRS) in Ahmedabad and a regional office in Baroda.
             ONGC

                                 Shell is among the global leaders in the oil, gas and petrochemicals sector, with interests in bio-fuels, wind, solar
                                  power and hydrogen. The company operates in over 90 countries, employing around 93,000 people worldwide. It
                                  is one of the largest and most diversified international investor in India’s energy sector.

                                 The company is the only global major to operate petro-fuel retail outlets in India. The Hazira LNG Terminal and
              Shell               port project is Shell’s largest venture in India.

45      Gujarat                                                                                  For updated information, please visit www.ibef.org
KEY SECTORS – PHARMACEUTICALS AND
                   BIOTECHNOLOGY … (1/2)

      Gujarat has over 3,300 pharmaceutical manufacturing units and
       contributed 30-35 per cent to India’s pharma sector’s turnover and                                                   Ahmedabad
       around 28 per cent to India’s pharma exports during 2014-15.                                                         cluster

      The state accounts for 80 per cent of intravenous sets manufactured                                                               Gandhinagar
       in the country. About 75,000 people are employed in the                                                 Surendranagar    Ahmedabad              Baroda
                                                                                                                                                       cluster
       pharmaceutical sector in Gujarat. It has the largest number of clinical
       research organisations in India and over 100 companies with WHO-                                            Rajkot
                                                                                                                                                    Ankleshwar
       compliant manufacturing units. The state accounts for 40 per cent of
                                                                                                                 Junagadh                           cluster
       the pharma machinery production of India.                                                                                          Surat
                                                                                                                         Bharuch and
      The landscape of the Gujarat biotechnology industry consists of                                                   Vapi/Valsad
                                                                                                                           cluster
       more     than    50   biotechnology    companies     and    66   support
       organisations. Gujarat holds the maximum number of patents among
       all Indian states, with 3,637 licensed units engaged in drug
                                                                                            Manufacturing         Academic institution        R&D organisation
       manufacturing. The state is home to 40 per cent of Contract
       Research and Manufacturing (CRAM) companies in India.

      Key initiatives taken by the government for the industry are as follows:

        •   Gujarat is the only state in the country to issue sales license through IT application with the help of National Informatics Centre. Setting up
            SEZs dedicated to the pharmaceutical sector to boost investments.

        •   Establishment of National Institute for Pharmaceutical Education and Research for human resource development.

46      Gujarat                                                                                          For updated information, please visit www.ibef.org
KEY SECTORS – PHARMACEUTICALS AND
                 BIOTECHNOLOGY … (2/2)

     Key players in pharmaceuticals and biotechnology industry

                                Sun Pharma was established in 1983. It manufactures Active Pharmaceutical Ingredients (APIs) and specialty
                                 pharmaceuticals. The company has 50 manufacturing plants across the world. Sun Pharmaceutical Advanced
                                 Research Centre (SPARC) is situated in Vadodara (Baroda). Manufacturing plants in Gujarat are located at Vapi,
                                 Halol, Ankleshwar, Ahmednagar and Vadodara.
          Sun Pharma

                                Bayer is a global enterprise with core competencies in the fields of healthcare, agriculture & high-tech materials. In
                                 India, Bayer operates 6 companies including Bayer Cropscience, which offers a range of products & it has service
                                 back-up for modern agriculture & non-agricultural applications. The company has three business groups: crop
                                 protection, environmental science & bio-science. It has 2 factories in Gujarat, at Ankleshwar & Himatnagar. During
                                 2016-17, the company generated revenues of US$ 4.60 billion.
      Bayer Cropscience

                                Quintiles is a fully integrated biotech & pharmaceutical services provider offering clinical, commercial, consulting &
                                 capital solutions. Key services in India include biostatistics, data management, clinical monitoring, central
                                 laboratory services, electrocardiogram monitoring services, project management & regulatory services. Quintiles
                                 India, the Indian subsidiary, has five offices in India. The research laboratory of the company is located at
                                 Ahmedabad.
           Quintiles

                                Zydus Cadila is one of the leading pharmaceuticals companies with a huge product line which includes
                                 formulations, APIs, diagnostics, health-foods & diet-foods, skin care & animal healthcare products. The company
                                 maintained a strong position in the market segments of cardiovasculars, gastrointestinals, women’s healthcare &
                                 respiratory. Production units are located in Ahmedabad, Vadodara & Ankleshwar for manufacturing tablets,
         Zydus Cadila            injectibles, capsules, liquids & APIs.

47     Gujarat                                                                                   For updated information, please visit www.ibef.org
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