The recent clinching of the Nano deal with the Tata Group Chairman, Ratan Tata seems to have provided additional momentum to the Narendra Modi-led Gujarat government'spreparations for its upcoming annual investment mela, the Vibrant Gujarat Global Investors Summit scheduled to be held in Ahmedabad in January.
The State government is all set to project Gujarat as the ultimate investment destination. At a luncheon meeting with senior scribes last week, the Chief Minister personally briefed them about the upcoming summit and exhorted them to help project Gujarat as the best bet for investors. In his role as the Chief Executive Officer (CEO) CM of his State, Modiji listed the various strengths of Gujarat which have contributed to its earning the sobriquet of being the growth engine of India.
According to statistics provided by the CM, the economic growth indicators of Gujarat have been impressive with an achievement of an average growth rate of 10.3 per cent in the last five years and has also mobilised the highest share of investments through Industrial Entrepreneurial Memoranda (IEMs). Not only that, the State contributes around 16 per cent of the industrial production of the country. It accounts for 9.5 per cent of the total number of employees in the country, 10 per cent of the total number of factories, 14 per cent of the net value added by manufacturers and a whopping 19.2 per cent of the total exports.
But what is most impressive is the fact that as per an RBI study in 2008, Gujarat ranked first in the investment sweepstakes amongst all states with a proposed investment of Rs 62,442 crore in 100 projects accounting for 22 per cent of the total investment in the country. A thriving industrial State, there are over 800 large industries and over 3,20,000 micro, small and medium industries in Gujarat. Not only is the State the world'slargest producer of processed diamonds and wall clocks, but is also the largest producer of castor and cumin and the third largest producer of denim.
Domestically speaking, it is the largest producer of cotton, and is a leader in various industrial sectors such as chemicals, petrochemicals, drugs and pharmaceuticals, dairy, cement and ceramics, textiles and engineering.
The State is also fast emerging as the SEZ capital of the country with clearance of 60 multi-product and sector specific SEZs already acquired covering an area of approximately 27,125 hectares. Said a senior official of the State'sindustrial department, ?That'slargely because we have a well-defined SEZ policy with a well-framed exit route. What also goes in the State'sfavour is the 10 year corporate tax holiday on export profit that we provide ? 100 per cent for the initial five years and 50 per cent for the next five years.?
One of the primary reasons why Gujarat has been able to attract and retain investment is that it outshines other states in infrastructure. Not only does it provide uninterrupted power supply, a State-wide gas grid and rich gas reserves but also an extensive road and rail network and airports which make it conducive for all types of investment to thrive. ?We have taken giant strides in the area of ports, power and water to create critical infrastructure,? the official said.
And what makes Modiji perhaps the most successful CM the State has ever had is that he has not been complacent about Gujarat'sinherent advantages. Instead, adopting an aggressively pro-active approach, he has, over the past four years, been actively wooing more and more investment into the State through his biennial Vibrant Gujarat Global Investment Summits which roll out the red carpet for the national and international investors. Thus far, Gujarat has had three of these summits resulting in over 977 MOUs being signed representing a staggering $ 200 billion in terms of proposed investment in various sectors. With the next summit round the corner, Modiji is all set to drive the State to greater prosperity on the back of the Nano deal.