Gujarat Summit: PM To Lure Electric Vehicles Investment, Here's Why

The red carpet will be rolled out by Prime Minister Narendra Modi for hundreds of domestic and foreign investors visiting Gujarat this week for a business event, according to Reuters. In one of his last major efforts to draw investments before a re-election bid, the Vibrant Gujarat Global Summit during January 10-12 would bring in around 100,000 visitors, including chief executives, business leaders, ministers, and diplomats from 133 countries. This is being dubbed as the biggest ever gathering at the biennial event, which is in its 10th edition.

Gujarat Global Summit to witness EV investments more

Automobiles & Auto Components industry

According to Vibrant Gujarat, there have been well-established auto-clusters which are based in Ahmedabad (Sanand), Vadodara - Halol, Mandal - Becharaji, Hansalpur - Vithalpur. There is a presence across the value chain - Clusters of castings & machine tools, brass parts, oil engines & electric motors, bearings and auto-ancillaries.

Notably, India's first lithium-ion battery manufacturing plant is based in Gujarat, where India's India's output of transport equipment contribution is up to 9%, as stated by the official website of Vibrant Gujarat. Presence of major Tyre and Auto Component companies, such as ata Motors, Maruti Suzuki, MG Motors and others.

Gujarat has been emerging as an Electric vehicle hub and specialized centre of excellence:

• iCreate EV Centre of Excellence for innovations focused on Electric Vehicles.
• International Automobile Centre of Excellence (I-ACE) for skill development through modern technology in the automotive sector.

Which all foreign companies are participating?
Participation in the summit includes Microsoft, Nasdaq, Alphabet's Google, Suzuki, and Toyota. Key figures such as Gautam Adani, Mukesh Ambani, and the chairman of Tata Group will also attend.

Which all companies have invested in India?
Since PM Modi came to power in 2014, foreign investors have shown significant interest in India. Companies like Apple, Samsung, Kia, and Airbus have expanded operations, reported Reuters. However, concerns exist about protectionist policies favoring local businesses.

What will be the specific sectors focused on?
The summit provides an opportunity for PM Modi and Gujarat officials to attract investors to sectors like chipmaking and electric vehicle manufacturing, where India faces challenges. Closed-door meetings with executives are planned.

Notably, PM Modi at the summit would assure investors about India's business-friendly policies and enhance its reputation as an investment destination. This comes ahead of the 2024 national elections, where Modi is expected to seek a third term. Further, US companies, anticipating Modi's return to power, are diversifying away from China and considering India due to its fast-growing economy, according to trade group US-India Strategic Partnership Forum, reported Reuters.

However, Gujarat has attracted approximately $34 billion in foreign investments between 2019 and 2023, making it the third-highest among Indian states. It focuses on traditional and emerging sectors. With previous Vibrant Gujarat summits, hotel room availability is limited and prices have surged. However, alcohol restrictions in the state may impact the experience for visitors.

Gujarat signed initial investment agreements totaling $120 billion with over 200 companies, including a local joint venture with steelmaker ArcelorMittal. While Gujarat traditionally focused on industries, it is now expanding into upcoming sectors like semiconductors, electronics, and electric vehicles, aiming to diversify its industrial landscape.