Service Sector
1
Service Sector
Presence Across Industry Sectors
Gujarat: A Thriving Industrial State
30%
22%
19.20%
17%
15.60%
14%
9.90%
9.50%
6%
5%
Stock market capitalisation
Longest Coastline
Exports
Fixed Capital Investment
Value of Output
Net Value
Factorories
Employees
Geographical Area
Population
18%
25%
28%
35%
42.30%
50%
58%
65%
80%
85%
98%
Textiles
Sea Cargo
Pharmaceuticals
Cotton
Groundnut
Chemicals
Petrochemicals
Plastic Industry
Diamond Processing
Salt Processing
Soda Ash Production
Contributing to India’s economy across all major sectors…
Petroleum products
Chemical & Pharma
Engineering
Food processing
Textiles & Apparels
Mineral based industries
Others
34%
23%
17.6%
10.3%
6.3%
2.50%
6.30%
…India’s largest producer of cotton
…World’s 3rd largest producer of denim
…Asia’s largest grass root petroleum refinery at Jamnagar
…India’s first LNG Chemical Port Terminal at Hazira
…World’s largest producer of castor and cumin
…World’s largest gas based single location sponge iron plant
…World’s largest producer of processed diamonds
Significant share in key industry sectors & products
Source: Socio Economic Review 2007-08
Gujarat: Economic Snapshot
Gross State Domestic Product(GSDP) : USD 45.3 Billion
Per Capita Income : USD 722
Urbanisation : 37.36%
Gujarat has demonstrated a 12.5% high industrial
growth rate from 2002 -2007
Gujarat is home to 800 large industries & over
3,20,000 micro, small and medium industries
Gujarat An Enduring Strong Economy
Composition of GSDP as per Economic Activity
P rim a ry S e cto r
S e co n d a ry S e cto r
T ertia ry S ec to r
P rim a ry S e cto r
S e co n d a ry S e cto r
T ertia ry S ec to r
18.22%
37.78%
44%
Growth Rate in 2006-07Source: Socio Economic Review 2007-08
Power 23 Power Plants of Electricity Generation Capacity – 9,561 MW (2007) and estimated to rise to 14,031 MW (2012)
Robust Infrastructure
Per capita power consumption is 1,354 units whereas India’s average is 665 units
Rich availability of natural gas (34 MMCD) and Lignite (1,072 MMT)
24-hour power supply to 98% of the villages
Only State to carry out interlinking of rivers
An extensive water grid network across the State
The water grid is a network of 75,000 km for water distribution for irrigation
75% population proposed to be covered by the grid by 2010
Total length of the existing GSPL pipeline is 14,53,163.33 meter supplying to 18 districts Gas
The pipelines of Gujarat State Petronet Limited (GSPL) supply gas to 13 districts, 5 more districts are proposed
to be connected by the pipeline
Total length of Integrated Gas Grid supplying gas to all districts is 2,200 km, of which 1,200 km is complete
and 800 km is under construction
Water
Robust Infrastructure
First State to privatize ports
42 ports along 1600 km coastline, including 1 major port at Kandla and 41 minor ports
Cost efficient transportation of natural gas, crude oil and petroleum products from Middle East and Europe
Landmark projects such as LNG port terminal at Hazira developed by Shell India Limited, Green field port at
Mundra developed by Gujarat Adani Port Limited, LNG terminal at Dahej developed by Petronet LNG Ltd.
and Pipapav port developed by Gujarat Pipapav Port Ltd.
Ports
Gujarat is well connected to major cities in the USA, EU, Asia and other Indian metropolitan cities
13 airports under the operational jurisdiction of Airports Authority of India (AAI), at Vadodara, Surat, Jamnagar,
Rajkot, Bhavnagar, Porbandar, Bhuj, Diu, Mandvi, Mundra, Kandla and Palanpur, including one international
airport at Ahmedabad
Airports
Rail & Road 71% of the road in the State is surfaced
State-of-the-art road infrastructure such as India’s first National Expressway from Ahmedabad to Baroda.
Total road length is 74, 111 Km; Target road length is 1,14,866 Km
Total length of railways in Gujarat is 5,188 km (8.25% of India)
6
Service Sector at a Glance
The service sector consists of the "soft" parts of the economy such as
insurance, government, tourism, banking, retail, education, and social
services. In soft-sector employment, people use time to deploy knowledge
assets, collaboration assets, and process-engagement to create
productivity (effectiveness), performance improvement potential (potential)
and sustainability.
Typically service sector employment include:
Hotels & Restaurants
Communication (Post/Telecom)
Banking & Insurance
Education & HRD
Consulting
Business services
IT/ITes
Tourism
Transport & Storage
Healthcare/hospitals
Real estate
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India’s Service Sector at a Glance
India’s service sector is larger and growing
faster than that of economies with higher per
capita GDP as shown in the graph
Rapidly increasing two-way trade in
information technology and information
technology enabled services (IT–ITES) and
other high-end services sub-sectors has
been a critical factor in India’s improved
economic performance.
‘[Information Technology (IT) and IT Enabled Services] can do for India what automotives did for Japan and oil for Saudi Arabia.’ (Noshir Kaka, Principal, McKinsey & Company)
India’s growing services sector
Vietnam India Indonesia China Thailand Malaysia Republic of Korea
70
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20
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14000
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Perc
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Vietnam India Indonesia China Thailand Malaysia Republic of Korea
70
60
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1985-891990-941995-992000-042004 per capita GDP
1985-891990-941995-992000-042004 per capita GDP
The service sector recorded a robust 9.1 % average growth, while total GDP grew at 7.0 % in the first
four years of the tenth Five Year Plan (2002–07).
8
Indian Service Sector at a Glance
India’s large pool of engineering talent and its rapidly expanding telecommunications
sector, IT–ITES have in recent years been the key catalyst of growth.
Growth and improved efficiencies in other key areas, such as financial services,
transportation and transport infrastructure, are vital to facilitating expansion of service
sectors of the economy.
Services sector has been buoyant through out the fiscal year 2006-07. This can be gauged
from revised estimates of gross domestic product (GDP) for 2006-07 released by central
statistical organisation (CSO), which has projected the real GDP emanating from services
sector to grow at 11 % from over 9.8% of the previous year.
The ‘trade, hotels, transport and communication’ group is set to grow at 13% during the
same period, registering significant improvement over 10.4% achieved a year ago. .
9
Gujarat Service Sector at a GlanceService sector in Gujarat is growing at a highest growth rate of 15.99% among the other sectors.
Services contributed 44 per cent of GSDP in 2007–08 compared with 41.45 per cent based on the earlier 2006-2007.
The growth of the services sector has been augmented by increasing industrial activity.
Growth and improved efficiencies in key areas, such as financial services, transportation and transport infrastructure, are vital to facilitating expansion of other sectors of the economy.
11.36%
15.99%
17.95%
Primary
Secondary
Tertiary
Growth across sectors (2006-2007)
Composition of GSDP as per Economic Activity (2006-2007)
18.22%
37.78%
44%
P rim a ry S e c to r
S e c o n d a ry S e c to r
T e r t ia ry S e c to r
P rim a ry S e c to r
S e c o n d a ry S e c to r
T e r t ia ry S e c to r
100100100100Total GSDP 4441.4542.2940.32Tertiary3
29.8929.3630.1829.62Manufacturing2.1
37.7838.3238.639.25Secondary215.2917.2114.7915.54Agriculture1.118.2220.2319.1120.43Primary1
2006-072005-062006- 072005- 06
At Constant PricesAt Current PricesSectorS.no.GSDP – Sectoral Contribution (%)
Source: Socio Economic Review 2007-2008
Source: Socio Economic Review 2007-2008
GSDP: Gross State Domestic Product
10
Gujarat Service Sector at a GlanceEmployment Distribution
Employment is distributed across service sector with community, social & personal service accounting for 0.6 million followed by transport, storage and communication
The total employment in public sector and private sector has increased from 1.75 million at the end of June-2006 to 1.80 million at the end of June-2007 growing at 2.33%
The employment in private sector has increased to 0.944 million at the end of June-2006 to 1.00 million at the end of June-2007.
152000 12300056000 52000 51000
600000
0100000200000300000
400000500000600000700000
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During the year 2006-07, 2.84 lakh persons have registered in the employment exchanges and 0.142
million have placed in employment as against 0.227 million persons registered and 0.131 million persons
placed in employment during 2005-06.
During the year 2007-08 (April-September-2007) 0.185 million persons have been registered in the
employment exchanges and 0.83 lakh have been placed in employment.
Employment distribution across services sector
11
Education Service
India’s premier institutes in Gujarat
Gujarat had an effective literacy rate of 61.2% as per 1991 census. Gujarat aims to have 100% literacy by 2010.
Knowledge-based industries have been prominent among the fastest growing services in Gujarat
The provisional number of educational institutions imparting primary education is 39,064 in 2006-07
The total intake capacity for technical education was 14551 seats in degree engineering, 220 in degree architecture course and 3045 in degree pharmacy course. While in 2007-08, 1140 seats, 40 seats and 660 seats have been added in degree pharmacy bring total intake capacity to 15691 seats.
31 Universities and 44 degree engineering and 57 diploma colleges provides a pool of quality knowledge manpower
Every year 0.7 million graduates are passing through Gujarat
4005
2601530
3405
15241
960
19480
Degree Engg. & Hotel Mgmt.
Degree Pharmacy
Degree Architecture & Allied
MCA
MBA/ PGDBM
Diploma Engg. & HotelMgmt.
Education Infrastructure
12
Education Service
With increasing growth of knowledge-based industries and increase in the need for technical manpower, the state is focusing on the development of a good academic foundation.
Education Infrastructure Opportunities
Setting up of short term courses in existing ITI, Polytechnics and Engineering Colleges
Setting up of anchor Institutes in different focus industry sectors.
Setting up of Bio-Technology research oriented institutions covering a wide variety of contract research (pre-clinical and clinical) bioremediation and quality certification / validation facilities and institutes speciallizing in post graduate courses, specialized courses and value added courses
Opportunities in health-care sector to initiate clinical research institutes, HealthcareOutsourcing (BPO)
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Healthcare Sector
79%
17%4%
Primary CareSecondary CareTertiary Care
Heathcare is important for having a healthy productive
workforce and general welfare so as to achieve population
stabilization.
Gujarat is on forefront of establishing and maintaining good
health infrastructure at various levels. Currently 1424 health
institutions are functioning at various levels 1073 primary health
centers, 273 community health centers & sub district level
hospitals, 25 district level hospitals and 30 others.
Gujarat offers holistic medicinal services and cost effective
treatment through various District hospitals, Sub district
hospitals and Private Specialty Hospitals
Most sought after Super – Specialties in the State include
Cardiology, Neuro – Surgery, Orthopedics, Infertility treatment,
joint replacement and eye surgeriesSource: Office of Commissioner Of Health : Government of Gujarat
Sub - District
Hospital, 25
Private Specialty Hospital,
20
District Hospital ,
25
Gujarat Healthcare Infrastructure (2005 – 2006)
Hospitals in Gujarat (2005-2006)
14
35086
36831
38013
39461 39734
32000
33000
34000
35000
36000
37000
38000
39000
40000
41000
2002 2003 2004 2005 2006
No. of Registered Doctors (2006)
Healthcare Sector
During the year 2006-07, 36.918 million patients
were treated in the outdoor while 3.253 million
patients were treated in the indoor through
Government medical institutions
Gujarat has 13 medical colleges, 39,734 registered
Doctors and 16,816 registered nurses
The state government’s initiatives in healthcare have
been nationally and internationally recognised:
Chiranjeevi Scheme was awarded the Asian Innovation Award 2006 at the Global Entrepolis Singapore by the
Singapore Economic Development Board. Dataquest e-Governance initiative National Award presented to
Commissionerate of Health and Family Welfare for e-Governance in Integrated Disease Surveillance Project.
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Gujarat is becoming a preferred medical tourist
destination. About 1,200 to 1,500 Non Resident Indian’s,
Non Resident Gujaratis (NRG’s) and a small percentage
of foreigners come every year for different medical
treatments. Gujarat contributes close to 25-31% of the
total medical tourism business in India.
Gujarat is evolving in terms of number of hospitals,
healthcare centres, beds and are expected to continue a
positive trend in future. Doctor to patient ratio is 1 : 10
and nurse to patient ratio is 1: 5
Market for tertiary care expected to grow at a faster rate,
due to rise in income levels, increasing adoption of
health insurance and rise in complex in-patient ailments(
heart diseases, kidney ailments, cancer.
The State Government is taking several initiatives to
make Gujarat a Global healthcare destination
Medical Tourists visiting India, 2000-2006
10000
40000
140000
230000
0
50000
100000
150000
200000
250000
2000 2001 2002 2003 2004 2005 2006
Cost Effectiveness, Higher ProductivityAccelerated Delievery, Clear Customer
FocusEnhanced Social Service, Recovery of user
charges
Benefits of Public Private Partnership
Healthcare Sector
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Information technology enabled services (ITeS) and IT
hardware industry are the focus growth areas of Gujarat’s
IT industry
Gujarat currently has about 22,358 professionals in the
sector
Software exports from the State saw a growth rate of
107.3% to reach USD 134 million in FY 2006-07 as
compared to that of FY 2005-06
The IT/ITeS sector turnover should grow from USD 60
million in 2005 to USD 2.4 billion in 2010-11
The Information and Communication Technology (ICT)
sector in Gujarat is projected to see investments of up to
USD 3.7 billion by 2010
Emerging IT/ITeS destinations
Information Technology
Rajkot
Ahmedabad
Gandhi Nagar
Vadodara
SuratBhavnagar
3548.86
64.64
134
FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07
Software exports (in USD million)
Source: DST, Government of Gujarat
17
India’s GDP and the IT sector
The projected Software Exports will be approximately 241 million USD in 2011 - 2012
The State produces around 6,11,909 graduates every year, nearly 14.5% of which can be directly form the IT workforce base and the rest have the eligibility to be employed in the ITeS sector.
The state has 37 AICTE approved engineering colleges which produce nearly 13,000 students every year.
The main focus is on an extensive critical infrastructure and a sound e-commerce foundation plentiful opportunities in IT enabled services.
The government has also taken initiatives on Gujarati language software standardization which will help improve interoperability of software/database among the government departments.
The state shall provide highest of security for the operation of IT/ITES units.
Software Exports (Projected ) IT Manpower (Projected )
Source: Frost & Sullivan
Information Technology
22,958
30,25128,23526,35324,597
05,000
10,00015,000
20,00025,00030,00035,000
2007-08 2008-09 2009-10 2010-11 2011-12
No430
568750
990 991
0200400600800
1,0001,200
2007-08 2008-09 2009-10 2010-11 2011-12
No
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Tourism SectorGujarat has immense potential to become a major tourist destination. Its historical monuments represent the great religions of Asia – Hindu, Buddhist, Jain, Islamic, Parsee and Sikh.
There are more than 400 archaeological sites in the state including some of the most substantial excavations of Indus Valley civilization period at Lothal (near Ahmedabad), Surkotada and Dholavira (in Kutch).
The archaeological zone of Champaner - Pavagadh have been acclaimed by UNESCO as the “World Heritage Site”because of its great mosques, temples, stepwells and forts. The Wild Ass sanctuary,Dholavira Harappan City and Rani-Ki-Vav are in the process of getting status of the World Heritage site.
The state has important pilgrimage places like Dwarka, Somnath, Dakor, Ambaji, Udwada, Navsari and Surat for Parsees, Palitana, Girnar, etc
21%
77%
2%
With in Gujarat OIS * Foreigners
Tourist Flow in Gujarat
IT Manpower (Projected )
6.167.98 7.61
10.712.34
02468
101214
2002
-03
2003
-04
2004
-05
2005
- 06
2006
- 07
Num
ber
of T
ouri
sts
(mill
ions
)
19
More than 2000 Fairs and Festivals are organised every year. Important state for Event-based tourism especially based on Navratri, Kite Festival and Tarnetar Fair (The Ternatar Fair popularly known as the Trinetreshwar Mahadev Mela revolves around the scared temple 'Trinetreshwar‘)
The State witnessed total 12.34 million tourists during 2006 – 07 out of which 12.1 million were the domestic tourists and 0.20 million foreign tourists. The average contribution of tourism industry to the State’s GDP is close to 2.5 %, while the comparable figure for India is 5.3%. The average foreign touristspend per person per day is close to USD 700 to 1050 in Gujarat
Domestic Tourists Foreign Tourists
Rs. 500Rs. 630
$700-1050
$1250
Gujarat India Gujarat India
Average Tourist Spend (one person per day)
Tourism Sector
Opportunities for knowledge and leisure, restaurants & cafetarias infrastructure is Junagadh, Bhavnagar, Modhera, Sidhhpur, Idar, Pavagadh, Adalaj, Vadodara, Dandi, Ranpur, Rajkot, Jamnagar, Dholavira, Lothal, Morbi, Somnath, Ahmedabad, Vadnagar
The tourism sector in Gujarat has attracted dozens of hoteliers, because of its proximity to leading tourist states. Hotels have lined up 2593 USD million worth of investments, which are expected to create 26,370 jobs. Medical tourism is a recent concept in India and Gujarat has been able to match world standards in almost all areas of treatment.
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There were nearly, 2.36 million telephone connections
(including W.L.L.) working in the State.
India’s leading GSM players like Vodafone, Idea
Cellular, Bharti Cellular, and Bharat Sanchar Nigam Ltd.
(BSNL), have been given licenses to provide GSM
Cellular Telephone Services while Reliance
communication and Tata Telecom have been given
licenses to provide CDMA cellular telephone services in
telecom circle of Gujarat.
The state’s share in the countrywide outstanding
subscriber base rallied around 7.34%.
An investment of 682 USD million is announced in the
state followed by 60 USD million of proposed investment
Telecom Sector
7413500No of Cellphone Subscribers (2006)
146176No. of Internet Subscribers
17.48Phones per sq.km (including WLL + mobile)
6.77Phones per 100 population (including WLL + mobile
Telecommunication Snapshot
4671045
20733089
5041
0100020003000400050006000
2001-02 2002-03 2003-04 2005-05 2005-0600
0
Cellular Subscribers Trend in Gujarat
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The industrialization of the state has helped the real estate sector to groom in different cities. The cost
of real estate properties in the cities like Ahmadabad, Gandhinagar, Vadodara, Surat etc are very
encouraging and these have emerged as important sectors for investment.
The real estate sector has witnessed enormous growth. There are many factors for this like retail,
finance, IT, BPO and telecom, there is a boom in real estate too.
Gujarat, which has a strong middle class population and one of the highest per capita GDP, is now
becoming a preferred destination for the organized retail sector. This is evident with the spurt of malls
in the state with companies like Prozone that are looking at setting up their first two malls in Rajkot
and Surat before entering other cities in India. Raymond, too, started its first kids apparel store, Zapp,
in Ahmedabad before entering markets like Mumbai and Pune.
The State offers great road connectivity and reliable power supply to its consumers. It has one of the
highest per capita power consumption (1175 units, as compared to India’s average of 592 units) and
competitive commercial real estate rates in comparison to other states in India.
Real Estate Sector
22
Apparels and jewellery retailing offers tremendous opportunities for the sector.
Gujarat, which, is the hub for textile and jewellery manufacturing in India is well positioned to exploit this opportunity.
With organized retail constituting only 3% of the total Indian retail, the state offers a huge potential for growth.
The state aims to increase the availability of specialized courses like retail management, which can go a long way to serve the need of quality human resources
Brand proliferation witnessed in recent years (last 4-5 years).
Rental Value Trend*
0
40
80
120
160
1994 2000 2007
* Quoted rentals in existing malls
Real Estate Sector
23
Civil Aviation
There is a tremendous growth in passenger traffic in the State.
Total passenger traffic in the State expanded by 27.2% to 31.5% recorded in the 2006-07.
The rise in passenger traffic was due to 38.25% hike in domestic passenger traffic to 0.267 million.
Cargo routed through the state airports revived by 22.96% from a decline of 5.52% recorded during 2006-
07.
Traffic of domestic passengers gained by a robust 41.47 percent after a 25.8%t.
A total of 6341 USD million of investment is in pipeline in Gujarat in 2007
Kutch
Jamnagar
Porbandar
JunagadhAmreli
Bhavnagar
Rajkot
Surendranagar
Banaskantha
PatanMehsana
Himmatnagar
Kheda PanchmahalDahod
Vadodara
Bharuch Narmada
Surat
Navsari
Valsad
Anand
GandhinagarAhmedabad
Invest in Gujarat : A World- class Business Destination
Knowledge Corridor
Chemicals, Petrochem. Pharma, Textiles &
Engineering
Industrial Corridor(DMIC)
55 Special Economic Zone (SEZs) across
Gujarat
Gujarat International Finance Tec City
Petroleum, Chemicals and Petrochemicals Investment Region
(PCPIR)
Bio-Tech Cluster
Soda Ash & Salt Based Industries,
Cement & Steel Pipes
202 Industrial Estates across Gujarat
Soda Ash and Salt Based
Engineering and Ceramics
18 Captive Ports along 1600 km coastline
across Gujarat
Special Investment Region (SIR)
Petroleum & Brass parts
To Delhi
To Bombay
Savli Biotech Park
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Key Contacts
Industries Commissionerate, Government of Gujarat
iNDEXTb -Industrial Extension Bureau
http:// www.ic.gujarat.gov.in
http://www.indextb.com
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