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INDIAN STATE : GUJARAT
Engineering industry including Automotive industry
Introduction
The engineering sector is the largest segment of the
overall Indian industrial sector and is recognized as
a key driver for the development of other sectors of
economy. This sector is experiencing robust growth as
India has a strong base in engineering and capital goods.
The engineering sector employs over 4 million skilled
and semi-skilled workers (direct and indirect). The
Indian engineering sector's future outlook is promising
because of high industrial growth, infrastructure development
and favorable policies. Indian engineering goods are
also gaining acceptance in overseas markets, with exports
of engineering goods increasing to USA, UK, Germany,
Netherlands and France. According to Engineering Exports
Promotion Council (EEPC), engineering exports could
touch US $ 30 billion by 2008-09.
As for the automotive sector, it is one of the core
industries of the Indian economy, whose prospect is
reflective of the economic resilience of the country.
With 4% contribution to the GDP and nearly 5% of the
total industrial output, the automotive sector has become
a significant contributor to the exchequer. Continuous
economic liberalization over the years by the government
of India has resulted in making India as one of the
prime business destination for many global automotive
players. The automobile industry witnessed a growth
of 19.35 percent in April July 2006 when compared to
April July 2005. Overall automobile Exports registered
33 percent growth rate in April - July 2006 over the
same period last year. Passenger Vehicles Exports grew
at 17.85 percent. Two Wheelers Exports grew by 34.08
percent and Commercial Vehicles by 32.08 percent.
Engineering and Automotive
Industry in Gujarat
Gujarat's engineering sector accounts for 33 percent
of industrial units, 26 percent of industrial employment
and 17 percent of industrial production. Currently,
275 projects with an investment of US$ 3.77 billion
are under implementation. Gujarat's economy and overall
development has gathered tremendous momentum over the
past few years and specifically, engineering industry
has witnessed impressive growth and development. Many
multinational companies such as Sandvik Asia, FAG Bearings,
Ingersoll Rand/Dresser Rand, ABB, and Hitachi among
others have established their manufacturing base in
Gujarat.
Various engineering industries are spread all over
Gujarat - Castings & Forgings (Ahmedabad, Rajkot,
Vadodara), Brass Parts (Jamnagar), Diesel Engine and
Parts (Rajkot), Textile Machinery Parts (Surat, Surendranagar),
Automobile components (Ahmedabad, Rajkot), Machine Tools
(Rajkot), Air & Gas Compressors (Ahmedabad), Industrial
valves (Ahmedabad), etc.
In Gujarat, Automobile sector has been growing tremendously
in the last few years. General Motors have set up their
unit near Vadodara. The automobile components are manufactured
mainly at Ahmedabad, Rajkot and Vadodara. The presence
of engineering, foundry and casting industries in the
State enables the sourcing of local components required
for the automobile assembly/passenger cars.
The state of Gujarat has huge potential for new investments
in this sector. The projects that offer investment opportunities
are Pre-Engineered Steel Building, High Pressure Cylinders,
Submerged Arc Welded (SAW) Pipes, Investment Casting,
Manufacture of automobile components, and setting up
automobile assembly units. There is also possibility
of foreign collaboration with local companies to upgrade
their technological capabilities, which would enable
them to offer world-class products.
Gems and Jewellery
Introduction
The Gems and Jewellery industry has an important role
in the Indian economy. While a predominant portion of
gold Jewellery manufactured in India is for domestic
consumption, a predominant portion of rough, uncut diamonds
processed in the form of either polished diamonds or
finished diamond jewellery is exported. With an estimated
consumption of 722 tonnes during calendar year or CY2005
(including jewellery consumption of 587 tonnes), India
is the largest consumer of gold in the world. India
is also estimated to hold nearly 14,000 tonnes of gold,
accounting for nearly 9% of the world's cumulative mine
production. The Gems and Jewellery industry contributes
around 15% of India's exports. Exports of Gems and Jewellery
aggregated Rs. 688.30 billion (US$15.55 billion) during
FY2006, accounting for 15.1% of India's exports.
The bulk of the Indian gems and jewellery exports comprise
import of rough diamonds, cutting and polishing in India,
and re exporting. As per data released by the Gems &
Jewellery Export Promotion Council (GJEPC), cut &
polished diamonds (CPDs) accounted for 71.1% of India's
Gems and Jewellery exports of Rs. 733 billion during
FY2006, followed by gold jewellery (23.2%), rough diamonds
(3.4%), and others (2.3%).
Gems and Jewellery in Gujarat
Gujarat is the leading State in India in gems and jewellery
sector, as it contributes to about 72% of the total
exports of India. Gujarat has a well-established diamond
industry. Diamond processing and trading unit are spread
across the State in cities such as Surat, Ahmedabad,
Palanpur, Bhavnagar, Valsad and Navsari. Gujarat accounts
for about 80% of the diamonds processed and 90% of the
diamond export from India. Surat has 65% share in India's
diamond trade. Out of ten diamonds in the world, 8 are
processed in Gujarat. The state of Gujarat is an ideal
location for designing, manufacturing and marketing
of gold jewellery. The advantages of investing in diamond
processing in Gujarat are:
Investment Opportunities
- Setting up of diamond processing centers and gold
jewellery manufacturing units.
- A gold refinery can be set up to meet the demand
of gold.
- Assaying and hallmarking centre is another opportunity
due to increasing quality consciousness for hallmarked
jewellery.
- Jewellery Artisan Training Centers are also indispensable
as skilled and trained work force would be required
for continuous innovation of products and processes
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