Gujarat – the Investment destination:

Some of the major initiatives taken by the Government to promote Gujarat as an investment destination:

1. In August 2021, the state department of civil aviation announced partnership with a Gujarat-based aircraft manufacturer Aero Freyr Inc to establish an aircraft manufacturing unit maintenance, repair and operations and flight-testing operations. The state department of civil aviation also invested Rs. 150 crore (US$ 20.22 million) to commence manufacturing of 2-seater and 4-serater aircraft and air ambulances.
2. In June 2021, the Gujarat government introduced the electric vehicles (EV) policy with the aim to roll out 200,000 EVs over the next four years.
3. In August 2021, MG Motor announced to invest Rs. 2,500 crore to increase the automotive production capacity in Gujarat.
4. In June 2021, Procter & Gamble (P&G) announced to invest over Rs. 500 crore to build a manufacturing plant for health & wellness products in Gujarat.
5. In July 2021, ESR India announced to invest Rs. 300 crore to develop an industrial and logistics park in the state.
6. In June 2021, Indian Oil Corporation (IOC) announced to invest Rs. 24,000 crore in petrochemical projects in Gujarat.
7. In May 2021, the government announced to establish pilot projects for containers. It aims to receive an estimated potential investment of Rs. 1,000 crore from private players.
8. In May 2021, Borosil Renewables announced a plan to expand its manufacturing unit in Gujarat at an investment of Rs. 500 crore with an aim to double its capacity to 900 tonnes per day or 5GW of installed capacity at its solar power plants.
9. In May 2021, Re-New Power announced to establish a solar component manufacturing unit in Gujarat at an initial investment of Rs. 1,200 crore (US$ 165.49 million), which is likely to increase to Rs. 2,000 crore (US$ 275.82 million).
10. In April 2021, Coal India Limited (CIL) signed a PPA (Power Purchase Agreement) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for the sale of 100 MW solar power to the company for 25 years.
11. In May 2021, Zerodha, announced the launch of True Beacon Global, the first alternative investment fund (AIF) in Gujarat’s GIFT City.
12. An ambitious Diamond Research and Mercantile (DREAM) City project launched for Surat’s diamond merchants is progressing in full swing.
13. ₹ 400 crore infrastructure projects related to phase-1 and phase-2 are currently being implemented. The main components of basic infrastructure include roads, utility ducts, street lights, water supply, sewerage network, stormwater drains etc.

Biodiversity-park at a cost of ₹ 139 crore: A biodiversity park will be developed in 87.50 hectares from Dr. Hedgewar Bridge to Bhimrad-Bamrolli Bridge.  The park has a 13 km walking track. There are 85 species of flora and over 6 lakh trees and saplings will be planted in the park.

Some 1sts of Gujarat

1. Logistics Performance Index 2018, 2019 and 2021
2. Export preparedness index 2020 and 2021
3. Good Governance Index 2021
4. National Start up Ranking 2018 and 2019
5. Composite Water Management Index 2018

Gujarat was the first state in the country to get an LNG terminal and Gujarat now has three LNG terminals besides a petrochemical hub.

Investment culture of Gujarat:  Gujarat is number one state as far as Investment culture is concerned. People of Gujarat are big time into investment in stock and securities and any issue of securities by Indian company get subscribed majorly in the State of Gujarat. In pre-online trading era Gujarat used to have large number of stock exchanges viz. Ahmedabad, Saurashtra Kutch, Vadodara and Rajkot Commodity Exchange. Traditionally large number of Gujaratis/Marwadis are into stock broking business.    

The India International Exchange Limited (India INX) India ‘s first international stock exchange is located at the International Financial Services Centre (IFSC), GIFT City in Gujarat. It has long trading hours operating 22 hours a day, six days a week.  This facilitates international investors to trade from anywhere across the globe at their preferred time. The exchange boasts off a huge daily turnover volume crossing ₹74,509 crores.

Foreign Direct Investment:  Gujarat receives highest FDI for fourth consecutive year in 2020-21. With a 37 per cent share, Gujarat saw $30.23 billion worth FDI in 2020-21.  Almost 94 per cent of the investment that came in Gujarat during 2020-21 was in the computer hardware and software sector.

Total exports from the state stood at US$ 63,440 million in the Financial Year 2020, US$ 60,587 million in Financial Year 2021 and US$ 101,200 million in Financial Year 2022 (until January 2022).

Gujarat Startups: Gujarat, owing to its inherent entrepreneurial spirit has significant position in the national start-up ecosystem.   Gujarat has ranked as the Best Performer in all India Start up ranking by Government of India in 2018 and 2021. The various attractive incentives by Gujarat Industrial Policy have created a strong network of nodal institutions which have assisted start-ups in expanding their operations both nationally and internationally.

Some of the key assistance offered by Gujarat Government to start-ups are:

1. Assistance upto Rs. 30 lakhs as a seed support
2. Sustenance allowance of Rs. 20,000 per month and Rs. 25,000 per month for women lead startup for one year
3. Assistance upto Rs. 1,00,000 for obtaining soft skills
4. Assistane of Rs. 10 lakhs for startups generating significant impact on the society
5. Assistance of Rs. 3 lakhs to enrol and participate for national/international recognised acceleration program
6. Additional 1% interest subsidy and maximum upto 9% on term loans to applicants under the provisions of scheme for assistance to MSMEs
7. start-ups will be entitled to 100% reimbursement of Stamp Duty and Registration Fee paid on sale/lease/transfer of land and Office Space for the first transaction
8. start-ups will be provided interest subsidy at the rate of 9% per annum subject to a ceiling of Rs. 2 lakhs per year for a maximum duration of two years.
9. start-ups will be provided assistance at the rate of 75% of cost of obtaining patent subject to ceiling of Rs. 2 lakhs per patent for domestic patent and Rs. 5 lakhs per patent for international patent.
10. A onetime assistance of Rs. 1 lakh will be provided to eligible start-ups for prototype/product development and additional assistance of Rs. 1 lakh will be provided for marketing
11. start-up which has raised equity capital from registered venture capital funds will be entitled to avail additional 25% of such capital from Gujarat Venture Finance Limited (GVFL), without additional scrutiny, on same terms at which the capital was raised within 6 months of such raising subject to a ceiling of Rs. 5 crores

Assistance to Incubators:

Capital Assistance: Incubators will be provided one-time capital assistance at the rate of 50% of Gross Fixed Capital Investment (GFCI), excluding cost of land, for setting up an incubator, subject to a ceiling of Rs. 50 lakhs.

Operating Assistance: a matching grant of 25% of funds mobilized by them from non-governmental sources, subject to a ceiling of Rs. 1 crore per annum for meeting their operational expenses.

Assistance for Procurement of Software: Government will support the procurement of key software required for development and testing purpose at incubator attached or associated with educational institution or universities as a shared facility at the rate of 50% of software cost subject to a ceiling of Rs. 1 crore.

Stamp duty: Incubators will be entitled to 100% reimbursement of Stamp Duty and Registration Fee paid on sale/lease/transfer of land and Office Space for the first transaction.

Power Subsidy: Incubators will be given power tariff subsidy at the rate of Re. 1 per unit in the billed amount for a period of five years.  Incubators will be given 100 % reimbursement for electricity duty paid for a period of five years.