Defence equipment manufacturing and international finance services are the focus areas at the Vibrant Gujarat Summit, which will be inaugurated by Prime Minister Narendra Modi on January 10 at Mahatma Mandir Exhibition Centre in Gandhinagar.
“We have recently announced a policy to support defence and aerospace manufacturing. At the Vibrant Gujarat Summit, several big-ticket memoranda of understanding will be inked with companies like the Anil Ambani Group, Mahindra & Mahindra, L&T and a few foreign firms,” Gujarat Chief Minister Vijay Rupani told The Hindu in an interview. “Several mega factories to make defence equipment and research and development centres will be set up in the State.”
Aiming to attract investment in aerospace and defence design, development and manufacturing, the government has announced Aerospace and Defence Policy-2016, offering a slew of benefits and incentives. According to Mr. Rupani, manufacturing is Gujarat’s forte: the State is a leading manufacturing base for petrochemicals, pharmaceuticals, textiles and automobiles. Now, defence equipment will join the list.
“After 2008, Gujarat emerged as a preferred hub for car-makers, with Ford, Honda and Suzuki opening factories in the State. Similarly, the companies engaged in defence and aerospace equipment manufacturing will set up shop in the State,” said Mr. Rupani, who assumed office in August last after the sudden resignation of Anandiben Patel.
Incentives offered
Under the policy, tax incentives like reimbursement of stamp duty and exemption from the Value Added Tax and interest subsidy on borrowings are available to those seeking to set up R&D centres or manufacturing units in the State.
International financial services is another area of focus, with the opening of the international stock exchange set up by the Bombay Stock Exchange (BSE) in Gujarat International Finance Tec City (GIFT City) near Gandhinagar. The BSE’s international exchange will also be opened by Mr. Modi on January 9.
Jaitley to address seminar
During the three-day summit, a seminar on ‘Business Potential of IFSC in India’ will be addressed by Union Finance Minister Arun Jaitley and Reserve Bank of India Governor Urjit Patel.
“GIFT City is the only international financial services centre in the country. So, it will be the hub of financial services, including banking, insurance and stock-trading. It has the potential to create thousands of jobs,” Mr. Rupani said.
