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Prime Minister Narendra Modi on Tuesday inaugurated the eighth Vibrant Gujarat Summit, which is expected to bring investments worth lakhs of crores into the state.
In his welcome address, Gujarat Chief Minister Vijay Rupani said the state enjoys a special place in the Indian economy and dedicated its progress to Prime Minister and the former chief minister of Gujarat, Narendra Modi. Diplomats and delegates from more than 100 countries are participating in the Summit, Rupani told the crowd at the Mahatma Mandir Convention Center in Gandhinagar.
He lauded the demonetisation effort launched by the Centre in November last year, which led to the withdrawal of old Rs 500 and Rs 1,000 notes.
First among the day’s corporate speakers, Ratan Tata, interim chairman of the Tata Group, heaped praise on Modi for the all-round development of the state and said it would be “stupid to not be here [Gujarat]”.
“We had the fortune and good luck of moving our car factory to Gujarat,” Tata said referring to the Tata’s Nano plant. After a controversial stay in West Bengal, Tata Motors shifted its Nano car project to Sanand, Gujarat in 2008.
Ratan Tata was followed by chairman and managing director of Reliance Industries Ltd Mukesh Ambani who promised that the telecom arm of the group, Reliance Jio Infocomm Ltd, will connect all hospitals, medical facilities, colleges and schools in Gujarat.
While all commitments made in the past have not translated to realised investments, with a Bloomberg report showing that of the Rs 40 lakh crore investment that has been pledged between 2003 and 2011, only 8 percent have actually materialised so far, Ambani claims that his company has actually invested Rs 10,000 crore more than the committed amount.
While addressing the audience at the inaugural event, Gautam Adani, chairman of Adani Group said that India is now well positioned for “several decades of strong growth”.
Adani Ports will invest Rs 16,700 crore to extend all port locations in the state, Adani said, adding that the key investments will span two new container terminals to increase the company’s capacity in Gujarat.
The group will also invest in businesses like cement and clinker at Mundra business district, he added. He announced that the group will invest Rs 49,000 crore in the state over the next 5 years.
This year, the total investment pledged by companies is expected to touch more than Rs 25 lakh crore, according to wire agency PTI.
Toshihiro Suzuki, chief executive officer of Suzuki Motors said that the company’s new automotive plant in the state will start functioning from next month, “We are eager to establish an industrial automobile cluster here in Gujarat,” Suzuki said.
Fairfax Founder and Chief Executive Officer Prem Watsa said the best investment opportunities are “right here in India.”
“In May 2014, India’s political climate changed dramatically for the positive with PM Modi’s election,” said Watsa adding that he expected Modi to be India’s Lee Kuan Yew, prime minister of the first post-colonial version of Singapore, credited with creating a a successful modern nation.
The previous edition of the Vibrant Gujarat Summit garnered investments worth more than Rs 25 lakh crore through more than 21,000 MoUs, according to the official website of Vibrant Gujarat Summit.
While there were eight partner and 110 participating countries in the last edition of the summit, the number of participating countries rose to 12 in this year’s summit.
This article was originally published on BloombergQuint
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