Modi invites businessmen to invest in Gujarat

Ahmedabad, Jan 12: Hardselling Gujarat as an attractive destination for foreign investment, Chief Minister Narendra Modi today unfolded an impressive array of advantages and opportunities before the prospective investors, saying the state's galloping economy, industry-friendly labour laws, abundant power and cheap land made it an ideal global business hub.

Inviting business magnates and captains of industries, including the Gujarati diaspora, to set up their shops in the western state, where enterprise and business acumen are interwoven with its cultural fabric, Mr Modi told the delegates at the third edition of the annual ''Vibrant Gujarat Global Investors' Summit'' that he hoped to attract substantial investments from both foreign and domestic investors.

The summits held in 2003 and 2005 were an astounding success in terms of participation from India and abroad with investment proposals worth Rs 66,000 crore and Rs 1.06 crore respectively being inked.

The inaugural summit in 2003 had attracted over Rs 66,000 crore of FDI through the signing of 76 MoUs, more than half of which was being implemented through projects progressing at various stages, he told the private players and foreign majors, appealing them to loosen their purse-strings and savour both the business climate and hospitality of the state.

The impressive event was attended by the Who's Who of Indian trade and industry, including Tata Group Chairman Ratan tata, Aditya Birla Group's Kumar Mangalam, Essar Group's Shashi Ruia, Sanghi Group's Ravi Sanghi and Wockhardt's group Habil Khorakiwala.

Top guns of Gujarat business houses --- Nirma group's Karsanbhai Patel, Adani group's Gautam Adani, Zydus Cadila's Pankaj Patel, Torrent Group's Sudhir Mehta and Arvind Mills' Sanjay Lalbhai were also present at the meet, ready with their intentions to further invest in the state.

Asserting that the state government's proposed Special Economic Zones (SEZs) and port-led development would power the current investment drive, Mr Modi said Gujarat was amongst the earliest states to enact an SEZ Act in 2004.

''Today, as many as 33 SEZs have been approved in the state, of which two are fully functional and others in the process of development,'' he told the gathering, also attended by Singapore Minister of State for Foreign Affairs Balaji Sadasivan and a host of chief of MNCs.

Mr Modi's speech was simultaneously heard in Chinese and Japanese languages as well with the help of cordless device, based on Vi-Fi or infrared system and it was unprecedented for any such event in India.

The event includes exhibitions, seminars and 12 focus sectors and one on one business meetings. FICCI is the National Partner for the summit and Ernst and Young and Mott Mc Donald are the Knowledge Partners.

Pointing out that the central aim of this Global Investors' Summit is SEZ, Mr Modi said, ''We have been able to secure the confidence of governments of various countries, managers of international companies and capital investors by showing them the strength and potential of Gujarat in an era of stiff competition in international trade and business.'' He said Gujarat is taking the lead in the country in the development of SEZs at a time when it has become a subject of intense debate and dispute. ''The state government has provided legal protection by promulgating Special Economic Zone (SEZ) Act,'' he said, adding that Gujarat is the only state having longest coastal area and infrastructure facilities associated with ports for international trade through SEZs.

Ports of Gujarat have registered a record of 80 per cent share in private cargo handling in the country during the last five years. The Gujarat government has given a new dimension to economic growth of the state by attaching it with gas and energy and port-based economic activities.

Both LNG terminals of India are located in Gujarat. Also, there is an extensive network of infrastructure facility of two private railway projects and four private ports of international standards.

''A front-runner in India's industrial surge, Gujarat is poised to emerge as the front-ranking economic powerhouse in the world,'' he told the delegates, hammering home the point that the state attracted 17 per cent of investments and had the reputation of being the fastest in project implementation.

Because of its impressive contribution in exports (21 per cent), industrial output (20 per cent) and market capitalisation (30 per cent) of the country, the state had emerged as the driver of Indian economy, he said, adding that in terms of growth, Gujarat had left behind even the fastest growing Asian economies.

''This is why the Planning Commission, while fixing the growth target for the current Five-Year Plan, has given Gujarat a target of 10.2 per cent against the national target of eight per cent.

But the state has surpassed even this and registered a 15 per cent growth rate,'' exulted a beaming Mr Modi.

Detailing on sector-wise potential and large opportunities to establish projects and investments in different areas of business in Gujarat, he said that apart from the current sectors, new investment opportunities had come up in the SEZs, ports, petrochemicals, manufacturing automobiles, biotechnology, information technology, energy, gems and jewellery, textile, medical tourism, urban infrastructure and human resources development.

Saying that while Gujarat has achieved a modern trend in development, Vibrant Gujarat's mission is becoming a milestone for creation of wealth with development of manpower and economic activities and employment. By linking it to global economic progress, the best atmosphere for economic independence has been evolving in Gujarat.

Mr Modi informed that relations between employee and industrialists had become cordial as a result of adoption of worker-oriented labour policy. Loss of working days in Gujarat is just 0.52 per cent, which is the best in the country.

As a result of integrated approach of these new policies, Gujarat has set the international benchmark in the field of modern infrastructure development. Gujarat has become a driving force for the national economy today because of the revolutionary feat it achieved in economic reforms programme, energy and reforms and water management. Agriculture production has risen to Rs 34,000 crore from Rs 9,000 crore. Rural economy of Gujarat is also in an upbeat mode due to proper implementation of innovative schemes in the country like Krushi Mahotsav, water conservation, value-based agro economy and Jyotigram, etc.

Apart from developing natural resources like gas and crude in Gujarat, the state government owned company like Gujarat State Petroleum Corporation has been successful in finding 20 trillion cubic feet of natural gas from Krishna-Godavari basin in South India, which is the highest reserve discovered in the country.

The company has become a global player and moreover it is doing well in the competitive area of finding oil and gas in the countries like Australia, Egypt and Yemen.

UNI