Global Country Study Report

On
Mining Industry
Of
Democratic Republic of Congo
Business Opportunities for Gujarat
Submitted to
Institute Code: 781
Institute Name: SRK Institute
Under the Guidance of
Prof.Fareed Khoja
In partial Fulfillment of the Requirement of the award of
the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Students of
MBA (Semester - III)
December -2014

Declaration
We, following students, hereby declare that the Global/ Country
Study Report titled Mining Industry in (Democratic Republic
of Congo) is a result of our own work and our indebtedness to
other work publications, references, if any, have been duly
acknowledged. If we are found guilty of copying any other report
or published information and showing as our original work, or
extending plagiarism limit, we understand that we shall be liable
and punishable by GTU, which may include Fail in examination,
Repeat study & re-submission of the report or any other
punishment that GTU may decide.
Name of Institute :SRK Institute of Management and Computer
Education, Anjar
Country :DRC
Semester : III

En.No.
137810592005
137810592012
1378105920
1378105920
137810592001
1378105920

Name of Student
Signature
Mital R. Dudharejiya
Medha N. Kenia
Nitya G. Nair
Rajdeep Jadeja
Nishant Babla
Shivrajsinh Vaghela

Certified that this Global Country Study and Report Titled

Mining Industry in Democratic Republic of Congo is the
bonafide work of attached student list with enrollment
numbers, who have carried out their research under my
supervision. I also certify further, that to the best of my
knowledge the work reported herein does not form part of any
other project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or
any other candidate. I have also checked the plagiarism extent
of this report which is % and the separate plagiarism
report in the form of pdf file is enclosed with this.

Signature of the
Faculty Guide

Plagiarism report
3

PREFACE

Today we are at the door step of 21st century. The world is widening
without having a New and new developments are coming these days in all
fields all over India to make the people life more comfortable and
luxurious. The industries are growing so fast in India in order to satisfy all
the needs of people. Similarly Gov. has supported to these companies for
their development and progress of private companies.

Practical Study plays a vital role in the field of education. It has been
introduced for the students to get practical knowledge along with the
theoretical knowledge; only bookish knowledge is not the right way of
learning anything especially for the management students. How
management principles are implemented in business can only be known
through practical study through visit, students can be berry well become
ware about industrial environment like problem, opportunities, different
situations etc. This helps the students for better understanding & gives
them a chance to show their skills & ability.

According to the above reviews our Gujarat Technological University has

included Global Country Report & viva of it, With a view to expand our
boundaries of thinking about implications of the theoretical knowledge in
practical field, We have preferred DRC. We are supposed to work on
Pestle Analysis and Sector Analysis of DRC. It is a matter of great
pleasure to present this report work.

Thus in order to survive in the market one should have theoretical as well
as Practical knowledge about all different fields prevailing in market.

ACKNOWLEDGEMENT

On the successful completion of this project (MBA II, SEM III), we would like
to express our gratitude to all the people who have helped us to complete
this project.

We forward gratitude to respected director of our institute, Prof. Mahesh

Barad for giving us an opportunity to work out this report.

We would like to express our gratitude to Prof. Milap Vaishnav, GCR

coordinator of the institute who gave us constant guidance throughout our
project. Without his help, we would not have been able to complete our
work in the present form.

We would also like to thank Prof Fareed Khoja, Principal of SRK Institute of
Management and Computer Education, for his continuing encouragement
and valuable support.

Lastly, we would also express our thanks to all who have directly or
indirectly helped us in preparing the report.

Executive Summary

INDEX
No
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7

Particular
Part-1
Steepled Analysis Of DRC
Social
Technological
Economical
Environmental
Political
Legal
Ethical & Demographic
STEEPLED Analysis of India
Social
Technological
Economical
Environmental
Political
Legal
Ethical & Demographical
STEEPLED Analysis OF Gujarat
Social
Technological
Economical
Environmental
Political
Legal
Ethical & Demographical

4
5
6

Part-2
Sector Study
Sector Study of DRC
Sector Study Of India
Sector Study Of Gujarat

Mining Sector
Mining Sector of DRC
8

Pg.No.

8
9

No.
1
2
3
4
5

Mining Sector Of India

Mining Sector OF Gujarat
List of Table
Particular
GDP
Population Density
Population
Literacy Rate
Mining Industries contribution in GDP

Pg.No.

PART - 1
STEEPLED ANALYSIS

1. STEEPLED Analysis of DRC

10

Introduction: History
Established as a Belgian colony in 1908, the then-Republic of the Congo
gained its independence in 1960, but its early years were marred by
political and social instability. Col. Joseph Mobutu seized power and
declared himself President. He subsequently changed his name -to
Mobutu Sese Seko -as well as that of the country -to Zaire. Mobutu
retained his position for 32 years through several sham elections, as well
as through brutal force.
Ethnic strife and civil war, touched off by a massive inflow of refugees in
1994 from fighting in Rwanda and Burundi, led in May 1997 to the
toppling of the Mobutu regime by a rebellion backed by Rwanda and
Uganda and fronted by Laurent Kabila. He renamed the country the
Democratic Republic of the Congo (DRC).
The DRC has over 200 African ethnic groups of which the majority are
Bantu. The four largest tribes Mongo, Luba, Kongo (all Bantu), and the
Mangbetu -Azande (Hamitic) make up about 45% of the population.
Capital and Largest City:- Brazzaville
Geographic location:-

1.1Social Analysis:Educational System:11

Access to basic education in the Democratic Republic of Congo (DRC)

remains poor, with up to seven million children across the vast country out
of school despite a 2010 government decision to make primary education
free. The DRC is still struggling to overcome the effects of wars that raged
between 1996 and 2003, compounded by continuing violence in the east
of the country and decades of corruption and poor governance Access to
basic education in the Democratic Republic of Congo (DRC) remains poor,
with up to seven million children across the vast country out of school
despite a 2010 government decision to make primary education free. The
DRC is still struggling to overcome the effects of wars that raged between
1996 and 2003, compounded by continuing violence in the east of the
country and decades of corruption and poor governance.
25 percent of the primary school-aged children and 60 percent of
adolescents were not enrolled in classes.
The state education system is in a state of collapse; infrastructure is
dilapidated or non-existent, and teachers infrequently paid and often
absent. Education was officially nationalized in 1972, but the Catholic
Church remains responsible for an estimated 80% of functioning primary
schools and 60% of secondary schools.
Languages:Approximately 242 languages are spoken in the DRC of which French is
the official and principal business language. Four African languages
including Swahili in the east, Kikongo in the area between Kinshasa and
the coast, Tshiluba in the south, and Lingala along the Congo River are
also common. English is widely spoken in
Lubumbashi and most foreign companies address the language barrier
through the use of translators.
French (official)
Lingala (a lingua franca trade language)

12

 Kingwana (a dialect of Kiswahili or Swahili)

Kikongo
Tshiluba
Health:There is a high risk of major infectious diseases in the DRC. Food or
waterborne diseases include bacterial and protozoal diarrhea, hepatitis A,
and typhoid fever. Vectorborne diseases include malaria, plague, and
African trypanosomiasis (sleeping sickness).
Many people do not have access to safe water and sanitation, and
waterborne diseases
contribute to a low life expectancy in the DRC. There is no health
insurance available in the DRC.Some regions have poverty levels above
80 % and patients bear most of their health costs as there is very limited
government support towards healthcare.

13

1.2Technological Analysis:Telecommunications:In 2008 there were estimated to be just 8,000 functioning fixed lines in
the country, but over 6.3m mobile phones in operation. Landline use
appears to be in decline, but mobile-phone use is growing steadily, and
operators believe that there is a potential market of over 30m subscribers.
There are five main operating companies; Vodacom and Celtel are the
market leaders. Average revenue per user is US$10-15/month, similar to
Nigeria. An important constraint to future growth is the absence of a
national fibre-optic network, or a connection to the South Atlantic-3/West
Africa Submarine Cable (SAT-3/WASC), which forces operators to rely on
satellites only.
The 2002 telecoms law is vague on the division of powers between the
national post and telecoms company, the Office congolais des postes et
tlcommunications, and the new regulatory authority, the Autorit de
rgulation de la poste et tlcommunication du Congo, resulting in
astruggle between the two institutions to the detriment of the overall
regulation of the sector. Among the pressing issues to be resolved are
which companies should build the fibre-optic network and link to SAT3/WASC, the auctioning of the 3G (third-generation) spectrum, and
overcrowding on the 900-mhz frequency. There are several local Internet
service providers, but overall national Internet usage, particularly outside
the capital is low.
Internet:The development of the internet in the DRC has been hampered by lack of
a viable fixed network infrastructure and the low penetration of PCs.
Internet access in the main centres of the country is largely achieved
through wireless technology notably. The most common method of
achieving access has been through the various cyber cafs that have
14

emerged in the cities. The current user base in the DRC is estimated to be
between 60,000 and 70,000.However DRC appear to be seeking ways of
best fast tracking the growth of the internet in the DRC with the recent
announcement that three ISPs had initiated the Congo Exchange Point.

1.3 Economic Analysis:The economy of the Democratic Republic of the Congo a nation endowed
with vast potential wealth is slowly recovering from decades of decline.
Systemic corruption since independence in 1960 and conflict that began
in May 1997 has dramatically reduced national output and government
revenue, increased external debt, and resulted in the deaths of more than
5 million people from violence, famine, and disease.
Foreign businesses curtailed operations due to uncertainty about the
outcome of the conflict, lack of infrastructure, and the difficult operating
environment. Conditions began to improve in late 2002 with the
withdrawal of a large portion of the invading foreign troops.
The transitional government reopened relations with international
financial institutions and international donors, and President Kabila began
implementing reforms. Progress has been slow and the International
Monetary Fund curtailed its programme for the DRC at the end of March
2006 because of fiscal overruns.
Notwithstanding a dip in 2009 in which real GDP growth only reached
2.8% amid renewed violence in the northern and eastern regions as well
as a decline in demand for commodities, economic growth has remained
strong and the country has positive growth prospects. The economy has
been buoyed by strong trade and investment flows, protecting it from
lingering global economic malaise. This has resulted in strong GDP growth,
estimated at 7.1% in 2012, but is expected to decrease to 6.2% in 2013.
While this still indicates strong economic growth, this figure was revised
downwards from 8.1% in the International Monetary Funds most recent
15

projections made in October. Still, the country is expected to continue to

show strong economic growth over the medium term, with the IMF
expecting 10.5% GDP growth in 2014.

Natural resources:-

With territory of over 2.34m sq km, the DRC is the largest country in SubSaharan Africa, and it is rich in natural resources. Arable land covers only
3% of the country's area, permanent pasture occupies a further 7%, and
roughly three-quarters of the country is forested.
Commercial logging and deforestation has moved more slowly than in
other tropical countries, but its pace is quickening. As well as forest,
natural resources include bountiful fresh water, particularly from the
Congo River, oil and numerous minerals.The main minerals are copper,
cobalt, zinc, diamonds and columbo-tantalite (coltan). Cadmium,
cassiterite (tin ore), gold, silver, wolframite (tungsten ore) and uranium
are mined on a smaller scale.

Latest Economic indicators:-

16

Particular

2010

2011

2012

2013

Real GDP growth

7.1

6.9

6.3

Exports of goods fob (US$)

8477

10931

11420

12562

Imports of goods fob (US$)

8043

9021

9137

9777

Exchange rate FC:US$

912

899

910

900

Economic growth:In mid-April the Bank released a comprehensive analysis of the country's
economy spanning 20years. The study noted important economic
progress during the last decade and predicted average GDP growth of 7%
in 2012-13, but said that the positive impact of rising commodity prices,
which boost exports and generate increased international interest inthe
country's mining sector, was mitigated by a failure to address key
infrastructure bottlenecks, particularly in transport, water and electricity. It
also criticised the country for its failure to reform state-owned enterprises
that are a drain on fiscal resources, distort competition and deter foreign
investment in many key sectors. The Bank also highlighted the inability of
the state to maintain and productively use the existing infrastructure,
generally due to poor management practice, a patrimonial polity and
entrenched corruption in the public sector.
The Bank study shows that executed budgets for ministries were
consistently lower than the approved budgets during 2008-10, with many
ministries spending less than half their budget allocation. Little appears to
have improved in 2011 when, overall, the government spent only 46% of
its budgeted spending according to official figures. The presidency and the
Prime Minister's office, meanwhile, exceeded their allocated budgets by
144% and 76% respectively. This partly reflects unrealistic budgeting and
partly inefficient spending procedures, marred by corruption and lack of
monitoring.

17

International relations:Relations with Angola remain tense, mainly because of a dispute between
the two countries over their maritime borders and offshore oil. The DRC
has a strong claim to offshore oilfields currently being exploited by Angola,
but it is doubtful that Angola, which is much stronger militarily, will
surrender lucrative oil blocks voluntarily.
There are conflict issues with Uganda: oil rights in Lake Albert; the
activities of Ugandan rebel groups in North Kivu and Orientale provinces;
and Ugandan involvement in the trade in gold and other minerals mined
illegally on Congolese territory. China's involvement with the DRC
continues to grow. China takes nearly half the country's exports, up from
around one-tenth in 2005: 80% of mineral-processing plants in Katanga
are owned by Chinese companies and more than 90% of the province's
minerals go to China. The DRC and China are also planning greatly
increased military co-operation, which may cause anxiety among the
DRC's neighbours in Central Africa.

Fiscal Year

Trade Organisation

Calendar Year
:

African Development Bank

World Bank

WTO
Inflation

10.5%

Population Below Poverty Line :

18

70%

Labour Forces

35.86million

.1.4 Environmental Analysis:-

Country Outlook: 2012-2016

The President of the Democratic Republic of Congo (DRC), Joseph Kabila,

has appointed the former Finance Minister, Augustin Matata Ponyo, as the
new Prime Minister. The President has called for the arrest of General
Bosco Ntaganda, who is wanted by the International Criminal Court (ICC)
for war crimes.
Mr. Ponyo has outlined his government's economic policies, aiming for
15% GDP growth by 2016, twice the current growth rate.
A new agriculture law has rattled investors, as it says that land may only
be ownedby Congolese nationals.

19

A World Bank report highlights how poor public finance management has
caused ministries to consistently fail to meet their spending targets;
meanwhile, the presidency and Prime Minister's office have spent far over
their budgeted allocations.
The EU has signed aid agreements worth US$251m with the government,
primarily directed to road.

1.5 Political Analysis:Political structure:Official Name

Rpublique dmocratique du Congo
Form of State
Unitary republic based on the 2005 Constitution
National Legislature
An elected National Assembly of 500 seats was installed in February 2012;
a 108 -seat Senate was elected by the provincial assemblies on January
19th 2006. Indirect Senate elections will be held in the Democratic
Republic of the Congo in 2014, after the provincial elections and followed
by gubernatorial elections. These elections were postponed one year from
20

an earlier date in June 2012 and another year from a later date in June
2013.
National Elections.
The last presidential and legislative elections were held on 28 November
2011. The incumbent president, Joseph Kabila, was re-elected for a second
term.
Head of State
Head of State is Joseph Kabila.
National Government
Appointed on 28 April 2012; its members from parties in the pro-Kabila
alliance, Majorit prsidentielle (MP).
Main Political Parties
There are 20 parties represented in the new government, but the Parti du
peuple pour la reconstruction et la dmocratie. Mr. Kabila'sparty,
dominates with eight ministers; Mouvement social pour le renouveau has
three ministries, and the Parti lumumbiste unifi two; the main opposition
parties are the Union pour la dmocratie et le progrs social , Mouvement
de libration du Congo (MLC) and Union pour la nation congolaise.
Government
Dominant Partypresidential Republic
Calling Code

+242

Internet TLD

.cg

national anthem

La Congolaise

Flag :

21

1.6 Legal Analysis:The legal system of the DRC is civil law-based and the mining industry is
regulated through national legislation, regulations issued by the DRC
parliament and the DRC executive branch. This legislature is in general
application throughout the entire country.
Exploration and Exploitation Permits for the Democratic Republic of the
Congo:Exploration operations are subject to the prior approval of a mitigation
and rehabilitation plan (MRP) subsequent to the delivery of the exploration
permit. However, prospecting and small-scale exploitation permits are
22

only subject to codes of conduct. An exploration permit may be obtained

in a maximum of 47 calendar days from the date of filing the request,
whist the approval of the MRP may be obtained in a maximum of 24
calendar days from its filing.
As part of its environmental management plan, the holder of an
exploration or exploitation right must provide for the measures of
remediation and environmental rehabilitation after closure, the costs of
which need to be entirely backed by a financial guarantee. However, the
funding of the guarantee depends on the type of operation and its
duration, and can take place over time.

1.7 Ethical & Demographical Analysis:-

The DRC has over 200 African ethnic groups of which the majority are
Bantu. The four largest tribes Mongo, Luba, Kongo (all Bantu), and the
Mangbetu -Azande (Hamitic) make up about 45% of the population.
DRC makes good ethical and policy culture country. However many of the
ups and downs came in the climate and in the economic and many storm
23

came on the country although they are growing successfully. DRC culture
is most interesting things. DRC has lots of the colorful culture and religions
also. Their education systems and their policies for the Business and for
maintain the relationship with the foreign also somehow impressive.

Religions: Roman Catholic 50%

Protestant 20%
Kimbanguist 10%
Muslim 10%
other (includes syncretic sects and indigenous beliefs) 10%

Population figures:75,507,308 August 2013

Population growth rate:2.579%

Age structures:Age

Total%

Male

Female

0-14 yrs

43.9%

16,285,752

16,052,701

15-64

53.5%

19,588,875

12,008,416

65 yrs and over

2.6%

794,544

1,100,677

24

Gender ratios:Total Population

1.01male/female

Under 15 years

0.99 male/female

15-64 years

0.72 male/female

65 years and above

1.01 male/female

Life expectancy:Total Population

55.74 years

Male

54.28 years

Female

57.23 years

2. STEEPLED Analysis of India

25

India at Glance
1. Population
2. Area

:
:

1,150,000,000 (1.15 billion)

3.3 million square kilometres

26

3. Geographical location
4. Coastline length

:
Lies between latitudes 8 4'
& 37 6 ' north and longitudes
68 7 ' and 97 25' east
:
7600 km

5. Languages

17 major languages, 844 dialects

6. Major religions

Hinduism, Islam, Christianity,

Buddhism, Sikhism, Jainism

7. National anthem

Jan gana mana written by

Rabindranath Tagore

8.National Song

9.National emblem

Vande Mataram, composed in

Sanskrit by
Bankimchandra Chatterji
:
Replica of the Lion Capital of
Sarnath

10.National flag

Horizontal tricolour in equal

proportion

of deep saffron on the

top, white in the

middle and dark

green at the bottom. In

the centre of

the white band is a wheel.

11. National animal

Tiger (Panthera Tigris)

12. National bird

Peacock

13. National flower

Lotus

14. National tree

Banyan

15. National fruit

Mango

16. National currency

Rupee (One Rupee=100 paisa)

17. National Sport

Hockey

2.1

Social Analysis:27

Changes in social trends can impact on the demand for a firm's

products and the availability and willingness of individuals to work.
In the India, for example, the population has been ageing. This has
increased the costs for firms who are committed to pension
payments for their employees because their staff are living longer. It
also means some firms have started to recruit older employees to
tap into this growing labour pool.
It describes the characteristics of the society in which the
organization exists. Literacy rate, customs, values, beliefs, lifestyle,
demographic features and mobility of population are part o the
social environment. It is important for managers to notice the
direction in which the society is moving and formulate progressive
policies according to the changing social scenario
India is the second most populous nation in the world with an
approximate population of over 1.1billion people. This population is
divided in the following age structure: 0-14 years 31.8%, 15-64
years 63.1% and 65 years and above 5.1%. There has a
(i)Mobility
(ii)Income distribution
(iii)Population demographics
(iv)Attitude to work and leisure
(v)Standard of education and skills
(vi)Working conditions

Pluralistic Society:Indian society is a pluralistic society with a complex social order

characterized by a multitude of ethnic, linguistic, religious and caste
divisions. Hindu constitutes the majority community and comprises about
82% of the population. They stand evenly distributed across regions.

The Muslims constitute 12% and the Sikhs 2% of the population. Muslims
are concentrated in J and K Assam, Bihar, U.P. Kerala and West Bengal.
Christians are concentrated in the small states of North East like
Nagaland, Meghalaya, Arunachal Pradesh, Mizoram and the Sikhs arte
concentrated in Punjab.
28

These distributions have an important bearing upon the politics of these

areas. The Muslim concentrated areas are communal riots areas; the
concentration of Sikhs in Punjab is a determinant of politics in Punjab.

Predominantly Rural Society:About 70% of the Indian people live in villages and Indian villages
continue to be under developed even backward. Lack of civic amenities,
employment opportunities, roads, transport facilities, electricity, hospitals
and schools in rural areas is a hard reality.
The gains of industrialization and development during the past 55 yeas
have mostly been cornered by the urban areas. On an average a city
dweller earns nearly 2.5 times more than a retaliate. The gains of
technological back-through and industrialization are yet to reach the
villages.
Urban-rural gap is a reality of our society. The ruralites feel that though
agriculture accounts for a major part of Indias national income. The rural
areas continue to lag behind because of the governmental policies which
favor the urbanities.
In the democratic political process, the rural people by virtue of their large
majority play an active a dominant role and yet the leadership in India
continues to be in the hands of the urban elite.
Of late, the government of India has started giving due importance to the
objective of rural development, Panchayati Raj etc. are all designed to
achieve this objective.
The growing awareness among the rural people and their increasing
participation in the politics process are healthy signs yet the process
continues to be slow.
Poverty:Poverty of the masses is an important feature of Indian social system.
Despite the fact of having made considerable progress in the fields of
agriculture and industrialization.

29

India continues to be an economically backward country. It still remains

worlds 15th poorest nation despite maintaining an overall industrial
growth rate of 3 to 5 % and an agrarian growth rate of 2 to 3 %. The
increase in GNP from 1.3 % in 1947 to 3.6 % in 1980 ha failed to match
the growing number.
A large number of Indians continue to live below the poverty line. The
economic development of the society through organized plans and all
round industrial and technological development constitutes the biggest
and most challenging objective of the Indian polity. The objective of
economic upliftment of at least 90 % of the people by the end of 8 th Five
Year plan period is indeed laudable, yet chances of achieving it appears to
be weak.

Illiteracy and Ignorance:Illiterates constitute a major part of Indian social system. A large number
of Indians are still illiterate. Nearly 64 % of the population continues to be
illiterate. Despite the spread of the educational network and adoption of
ideal like free and compulsory education for children up to 14 years and
the ideal of making 80 million adults literate by 1995.
India remains a state inhabited by a large majority of illiterates. The
population explosion and poverty combined with inadequate resources
and efforts have all combined to perpetuate the problem. The political
process continues to be predominated by illiterate masses who are
exploited by literate and neo-literate leaders.
Even many political leaders have a vested interest in perpetuating
illiteracy and public ignorance because they are leadership. The faulty
system of education has further compounded the evil of illiteracy.
Even the literates have failed to keep away from casteism, communalism,
factionalism, regionalism, indiscipline and corruption. Politics in India
continues to operate in an environment of illiteracy and ignorance.
Nevertheless, with the passage of time the people of India are learning
through formal and informal means of education gaining experience and
becoming more and more mature.
Illiteracy creates so many social problems. The need is for more
determined governmental action and strong social support in this respect.

30

Linguistic Diversity:Communalisation of language is another factor which is polluting the

social environment of India. On the basis of language, Indian society
stands divided into linguistic groups.
The Constitution of India recognizes as many as 15 languages as the
major languages which are spoken by 87% of population. There are as
many as 1952 mother tongues in India.
In the North-East region alone, which constitutes just 8% of the Indian
Territory and 4% of the population, there are 432 languages. Hindi is
spoken by nearly 31% of the peop0le followed by Telugu which is spoken
by nearly 9% of the population.
Linguistic diversity and emotional and parochial love of people for their
regional languages have forced the government to accept and follow the
principle of reorganization of Indian States on the basis of languages i.e.,
the creation of linguistic States.
This feature has, further, hindered the recognition and use of Hindi as the
official language of the Union. The Southern States are not prepared to
accept Hindi as the national language and instead are prepared to retain
English as the medium of communication with the Centre and other
States.
Language has emerged as key factor of social and political tension in
India. Hindi has failed to get support as the National Language and
attempts to popularize it are regarded by the people of the South,
particularly in Tamil Nadu, as impositions and they oppose it through
aggressive and violent protests.
In some states like Punjab, which is a bilingual state, the three language
formula stands implemented but it has unduly burdened the educational
system and within the State has divided the people on language basis.
Racial Diversity:India is inhabited by people of different racial connections. People of the
North are of Aryan race whereas the people of South represent the
Dravidian race.
In the Eastern States people have affinity with Mongolian race. The racial
inter-mixing has taken place but only in a limited way. The principle of
31

unity in diversity is accepted and yet diversities are many a time allowed
to dominate the objective of unity.
The Constitution categorically ends racial discrimination and provides for
secularism as the best way, yet in actual operation of socio-political
processes, racial factor plays a role in India.
Castes and Casteism:Caste and casteism has been the pre-dominant feature of India social
system. It is an ancient practice, may an ancient evil which continues to
influence Indias social, economic, cultural and political life.
The constitution in abolishing untrouchability and in providing for no
discrimination on the basis of caste and creed has taken a great step
towards their dilution, if not elimination of caste and casterism.
But in the actual process of Indian society, caste and casteism continue to
be major factors. An attempt is on to limit their role.
Increased social mobility and inter-mixing of people living in various parts
of the country have made the people less caste continues to be a major
factor in the political processes like political socialization, leadership
recruitment, political communication, political participation and voting
behavior.
Caste membership and caste loyalties continue to influence the popular
participation in politics. Even the constitution provisions for reservation of
seats and jobs for the people belonging to Scheduled Castes and Tribes
have failed to produce the desired integrative effect.
Caste system has deep historical roots and hence cannot be abolished. It
has been playing an integrative role but only at the group level. It has
helped the formation of social groupings in an otherwise vast and
heterogeneous population.
Hence what is needed is not its abolition but the cultivation of the ability
to limit its role and prevent it from acting as a source of communalism,
regionalism and parochialism.
Communalism:The presence of communal tension and the periodic outbreak of
communal riots have been the bone of Indian social system. Even after 55
years of independence these continue to strain the socio-political system.
32

The existence of some regional and communal political parties adds fuel
to the fire.
Exploitation in the name of religion, election campaigns based on
communal lines and use of religion as a pressure group are practiced by
political parties, which prefers secularism and also those which are based
on a particular religion. Communalism remains a big strain on Indias
efforts towards nationalism.
The mean ace of communalism constitutes a big danger to the unity and
integrity of the nation. Even the spread of literacy and operationalisation
of several control mechanism have produced little success towards the
elimination of this menace.
The rejection of communal electorates and the implementation of a
communal electrode too have failed to produce the desired results. Each
year the State has to spread a huge amount of money for preventing and
controlling riots and providing assistance to riot affected people. All this
seriously limits the capabilities of India social system.
Regionalism:Religious, linguistic, cultural and caste diversities prevailing in the India
society have together strengthened the forces of regionalism. Love and
concern for ones local areas of inhabitation is something natural.
The adoption of federal structure presupposes the existence of some
regionalism due to which the division of pw3r is done between the federal
government and the federating units. India is not an exception to
generalization. But unfortunately, regionalism in India often takes the form
of sub-nationalism or even anti-nationalism.
The sons of the soil principle and the existence of several regional political
parties with narrowly conceived regional goals have aggravated the
problem.
People belonging to a particular region or state regard fellow citizens who
belong to other areas/regions/states as outsiders. People of Haryana
regard Punjabis outsiders and even raise such slogans as Haryana for
Haryanvis. Similar cries are also heard from other parts of the country.

33

Inter-state boundary disputes, demand for more and more autonomy for
the states, separate states and independent states are manifestations of
regionalism which characterize Indian society and which deep the political
system under stress.
The need to channelize regionalism and make it a contributing part of
nationalism is one of the biggest tasks before the Indian socio-political
system.
Tradition and Modernity:Tradition and modernity exist side by side in the Indian society. The
attempts of modernization of tradition as well as traditionalisation of
modernity are simultaneously present.
Tradition is clearly being affected by modern trends and pressures like
politicization of caste, lessening of caste consciousness among the urban
elites, operationalism of modern western tools of administration and
government etc but at the same time modernity after gets colored with
traditionalism when the social and political elites talk in terms of age old
glorious traditions of India.
The Indian approach towards development reflects both tradition and
modernity. As Rajni Kothari writes, The Indian approach to development
may be characterized as one in which the exposure to modernity led to a
renewed

awareness

and

quickening

of

traditional

identity,

its

reinterpretation and rejuvenation and its consolidation in the framework of

new institution and ideas.
The Indian response to modern stimuli consisted of asserting the
Indianans of India, reformulating this Indianans and giving it a modern
character.
The model of those who conceive of modernization as a rejection of
traditionalistic and transformation on modern lines does not apply to
34

India. Nor does the opposite model of those who deny potency to modern
institution and values and simply assert the durability and resilience of
traditionalism.
What is happening in India can be described as an attempt as a synthesis
of tradition and modernity for achieving a new identity without destroying
its rich diversity and cultural heritage.

2.2 Technological Analysis:For many years in the past, India did not have a favorable attitude
towards latest technology to meet foreign standards. The overemphasis
on indigenous technology had led to high costs and distorted
developments.
The reservation of certain products exclusively for the small-scale sector
promoted several companies including multinationals to resort to such
strategies as franchising and contract manufacturing in some of these
industries in India.
The reservation of products for the small scale sector sometimes comes in
the way of adoption of modern technology if it involves
capital investment higher than the specified limit.

Internet users: Number of Internet users in India is the 3rd largest

in the world next only to China and the United States of America.

Though the number of internet users is high, internet penetration is

still much lower than most countries across the globe.

As per Tech Circle reports from Aug 2013, India reported 165 million
Internet connections of which over 140 million were mobile internet
connections.

35

New technologies create new products and new processes. MP3 players,
computer games, online gambling and high definition TVs are all new
markets created by technological advances. Online shopping, bar coding
and computer aided design are all improvements to the way we do
business as a result of better technology. Technology can reduce costs,
improve quality and lead to innovation. These developments can benefit
consumers as well as the organisations providing the products. Today in
India 3G technology starts. A heavy infrastructure for bandwidth. BSNL
and Reliance have more covered city by optical fibre. India have many
Technological Projects. Good Service provider in IT sector ex TCS, Infosys
and many more.Today India is a big market in mobile sector here 5-6
player operataors and new operators launch their services soon.
(i) IT Development
(ii)New Materials and processes
(iii)Government technology funding
(iv)Speed of technology transfer
(v)Software upgrades

2.3 Economic Analysis:It includes interest rates, taxation changes, economic growth, inflation
and exchange rates. As you will see throughout the "Foundations of
Economics" book economic change can have a major impact on a firm's
behaviour. For example:

higher interest rates may deter investment because it costs more to

borrow
a strong currency may make exporting more difficult because it may
raise the price in terms of foreign currency
inflation may provoke higher wage demands from employees and
raise costs
higher national income growth may boost demand for a firm's
products

36

In order to solve economic problems of our country, the government took

several steps including control by the State of certain industries, central
planning and reduced importance of the private sector. The main
objectives of Indias development plans were:

Initiate rapid economic growth to raise the standard of living, reduce

unemployment and poverty,
Become self-reliant and set up a strong industrial base with
emphasis on heavy and basic industries,
Reduce inequalities of income and wealth,
Adopt a socialist pattern of development based on equality and
prevent exploitation of man by man,

As a part of economic reforms, the Government of India announced a new

industrial policy in July 1991,
The broad features of this policy as follows:

The Government reduced the number of industries under

compulsory licensing to six.
Disinvestment was carried out in case of many public sector
industrial enterprises.
Policy towards foreign capital was liberalized. The share of foreign
equity participation was increased and in many activities 100 per
cent Foreign Direct Investment (FDI) was permitted.
Automatic permission was now granted for technology agreements
with foreign companies.
Foreign Investment Promotion Board (FIPB) was set up to promote
and channelise foreign investment in India.

The economic factors in India are improving continuously. The GDP

(Purchasing Power Parity) is estimated at about 3.965 trillion U.S. dollars
in the year 2009. The GDP- real growth rate in 2009 was 6%. India has the
third highest GDP in terms of purchasing power parity just ahead Japan
and behind U.S. and China. Foreign direct investment rose in the fiscal
year ended September 2009 to about US$ 10.532 billion. There is a
continuous growth in per capita income; Indias per capita income is
expected to reach Rs. 33283 by the end of 2009-2010. This will lead to
higher buying power in the Hands of the Indian consumers. India GDP is
now 6.5. Today India reserve US dollar in Good condition.
37

(i)

Taxation policy

India has a well developed tax structure with a three-tier federal structure,
comprising the Union Government, the State Governments and the Urban
& Rural Local Bodies. The power to levy taxes and duties are distributed
among the three tiers of Governments, in accordance with the provisions
of the Indian Constitution. The main taxes/duties that the Union
Government is empowered to levy are Income Tax income, Customs
duties, Central Excise and Sales Tax and Service Tax. The principal taxes
levied by the State Governments are Sales, Stamp Duty, State Excise,
Land Revenue, and Duty on Entertainment and Tax on Professions &
Callings. The Local Bodies are empowered to levy tax on properties, Octroi
Tax on Markets and Tax/User Charges for utilities like water supply,
drainage, etc.

(ii)

Privatisation

Reduce the political interface in the management of enterprises, leading

to improved efficiency and productivity. In India this time do many govt
company Good performance but some time later there are facing many
problems so the go for privatisation.
(iii)

Deregulation

India Govt makes some Act to freely do business in India.

In Indian economy is strong. We see in recession our economy is less

affect from recession compression to western countries. These following
factors:
Trade Commerce Capital

Mumbai

Rank

10th nominal

Currency

Indian Rupee

38

Fiscal Year

1 April- 31 march

GDP Growth

4.7%

GDP by Sector

Inflation

Agriculture

13.7%

Industry

21.5%

Services

64.8%

5.5%

Population Below Poverty Line

22%

Unemployment

10.8 Million

Main Industry

Agriculture, Petroleum, Software,

Steel, Transportation,
Cement, Mining,
Construction
Export

$464 Billion

Export Goods

Software, Agriculture product,

Jewelery, Textile
Main Export Partners

European Union
United States
United Arab Emirates
China
Singapore

Import

$616 Billion

Import Goods

Crude Oil, Gold, electronics, Chemicals

39

Import Partners

China
European Union
United Arab Emirates
Saudi Arabia
Switzerland

Flag

2.4 Environmental Analysis:There are many environmental issues in India. Air pollution, water
pollution, garbage, and pollution of the natural environment are all
challenges for India. The situation was worse between 1947 through 1995.
According to data collection and environment assessment studies of World
Bank experts, between 1995 through 2010, India has made one of the
fastest progress in the world, in addressing its environmental issues and
improving its environmental quality. Still, India has a long way to go to
reach environmental quality similar to those enjoyed in developed
economies. Pollution remains a major challenge and opportunity for India.
Environmental issues are one of the primary causes of disease, health
issues and long term livelihood impact for India.

Cause:-

40

India's growing population is the primary cause of India's environmental

degradation. Systematic studies challenge this theory. Empirical evidence
from countries such as Japan, England and Singapore, each with
population density similar or higher than India, yet each enjoying
environmental quality vastly superior than India, suggests population
density may not be the only factor affecting India's issues.
Major issues:Floods are a significant environmental issue for India. It causes soil
erosion, destruction of wetlands and wide migration of solid wastes.
Major environmental issues are forest and agricultural degradation of land,
resource depletion (water, mineral, forest, sand, rocks etc.),
environmental degradation, public health, loss of biodiversity, loss of
resilience in ecosystems, livelihood security for the poor.
The major sources of pollution in India include the rampant burning of fuel
wood and biomass such as dried waste from livestock as the primary
source of energy. lack of organised garbage and waste removal services,
lack of sewage treatment operations, lack of flood control and monsoon
water drainage system, diversion of consumer waste into rivers,
cremation practices near major rivers, government mandated protection
of highly polluting old public transport, and continued operation by Indian
government of government owned, high emission plants.

Population growth and environmental quality:-

41

Population growth, because it can place increased pressure on the

assimilative capacity of the environment, is also seen as a major cause of
air, water, and solid-waste pollution. The result, Malthus theorised, is an
equilibrium population that enjoys low levels of both income and
environmental quality. Malthus suggested positive and preventative forced
control of human population, along with abolition of poor laws.
Water pollution:-

India has major water pollution issues. Discharge of untreated sewage is

the single most important cause for pollution of surface and ground water
in the India. There is a large gap between generation and treatment of
domestic waste water in the India. The problem is not only that India lacks
sufficient treatment capacity but also that the sewage treatment plants
that exist do not operate and are not maintained.

42

Air pollution:-

Clean burning fuels and electricity are unavailable in rural parts and small
towns of India because of poor rural highways and limited energy
generation infrastructure.
The Air (Prevention and Control of Pollution) Act was passed in 1981 to
regulate air pollution and there have been some measurable
improvements. However, the 2012 Environmental Performance
Index ranked India as having the poorest relative air quality out of 132
countries.
Solid waste pollution:Along with waste-to-energy projects, some cities and towns such as Pune,
Maharashtra are introducing competition and the privatisation of solid
waste collection, street cleaning operations and bio-mining to dispose the
waste. A scientific study suggests public private partnership is, in Indian
context, more useful in solid waste management. According to this study,
government and municipal corporations must encourage PPP-based local
management through collection, transport and segregation and disposal
of solid waste.

43

2.5 Political Analysis:Features of political parties in India:Compared to other democratic countries, India has a large number of political parties. It has been
estimated that over 200 parties were formed after India became independent in 1947.

One other major feature of the political parties is that, except for the communist parties, most of
the political parties of India lack an ideological basis. Instead political parties in India are formed
on the basis of race, religion, language, caste etc. factors, thus the high number of political
parties.

Types of political partie:-

There are two types of political parties in India - National Party and Regional/State party. .

44

Indian state governments led by various political parties as of March 2014.

In May 2014, Narendra Modi of BJP was elected as Prime Minister of India.
Formation of coalition governments reflects the transition in Indian politics
away from the national parties toward smaller. Some regional parties,
especially in South India, are deeply aligned to the ideologies of the region
unlike the national parties and thus the relationship between the central
government and the state government in various states has not always
been free of rancor. Disparity between the ideologies of the political
parties ruling the centre and the state leads to severely skewed allocation
of resources between the states.
In India many poltical factors those effect in business environment.
Political pressures in ruling government and vote bank problems. These
are the major factors those affect on political environment:(i)

International trade regulations

International trade regulation day by day India makes it flexi able for
foreign trade.
(ii)

General initiatives

Some policy to first Political initiates for the business environment in In

India.

45

(iii)

Government stability

In India past 10 years govt is stable. Before 10 years India facing govt
stability. If govt stability not market is not improve and no one come here
for investment.
(iv)

International stability

No wars, no any country home problems, and no any type of war like Iraq
they make uncertainty in market.

2.6 Legal Analysis:Law and order:Terrorism, Naxalism, religious violence and caste-related violence are
important issues that affect the political environment of the Indian nation.
Stringent anti-terror legislation such as TADA, POTA and MCOCA have
received much political attention, both in favour and opposed.
Law and order issues, such as action against organised crime are issues
which do not affect the outcomes of elections. On the other hand, there is
a criminalpolitician nexus. Many elected legislators have criminal cases
against them.
These are related to the legal environment in which firms operate. In
recent years in the India There have been many significant legal changes
46

that have affected firms' behaviour. The introduction of discrimination and

disability discrimination legislation, an increase in the minimum wage and
greater requirements for firms to recycle are examples of relatively recent
laws that affect an organisation's actions. Legal changes can affect a
firm's costs and demand.
This consists of legislation that is passed by the parliament and state
legislatures. Examples of such legislation specifically aimed at business
operations include the Trade mark Act 1969, Essential Commodities Act
1955, Standards of Weights and Measures Act 1969 and Consumer
Protection Act 196.
In India take many type of permission to the sate govt or central govt.
In India many type of act like license permission, copyright permission,
and many types of other permission.
(i)Employment law
(ii)Trade and product restrictions
(iii)Health and safety regulations
(iv)EU and international laws
(v)Monopolies commission

2.7 Ethical & Demographical Analysis:India, one of the oldest civilizations in the world has remarkably diverse
demographics.
India is the second largest populous country in the world, with over 1.21
billion people, more than a sixth of the world's population indicating an
increase of 17.64 per cent during the last decade.
However, India has an astonishing demographic dividend where more
than 50% of its population is below the age of 25 and more than 65%
47

hovers below the age of 35. This is expected that, in 2020, the average
age of an Indian will be 29 years,
2030, India's dependency ratio should be just over 0.4.
India has more than two thousand ethnic groups, and every major religion
is represented.
As there are four major families of languages such as Indo-European,
Dravidian, Austro-Asiatic and Tibeto-Burman languages as well as a
language in isolated form as in the Nihali language spoken in parts of
Maharashtra.
Further complexity is lent by the great variation that occurs across this
population on social parameters such as income and education. Only the
continent of Africa exceeds the linguistic, genetic and cultural diversity of
the nation of India.
Linguistic demographics :There are 216 languages with more than 10,000 native speakers in India.
Under 8th Schedule, 22 languages are recognized as official languages.
In India, 43% of the Hindus speak Hindi while the rest speak Bangla,
Telugu, Marathi, Tamil, Gujarati, Kannada, Malayalam, Assamese and other
languages.
Almost 45% of the Muslims speak Urdu while the rest speak Bangla, Hindi,
Kashmiri, Malayalam, Telugu, Tamil, Gujarati, Assamese and other
languages.
About one-third of the Christians speak Malayalam, one-sixth speak Tamil
while the rest speak a variety of languages.
In total, there are 1,652 languages and dialects spoken in India.
Religions:-

48

India being a secular country, there is no official religion. The religion wise
population of India is Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh
1.8%, Buddhists 0.8%, Jains 0.4%, others 0.7% and unspecified 0.1%. The
percentage of Scheduled Castes and Tribes are 16.2% and 8.2%
respectively.
A condensed 2011 Demographics of India:At a total cost of Rupees 22,000 million, the 15th National Census of India
was conducted in two phases.
This National Census of the country provides data on India's latest
demographic characteristics, social and economic activities, literacy,
urbanization, migration rates and so on. It is widely used for Planning and
formulation of policies for the central and State governments.
India's literacy rate is 74% for the age above 7 with Kerala being the
highest among the States
It is still way below the countries like Congo (81%), South Africa (88%),
Brazil (90%), Sri Lanka (91%) and China (93%).
The countries sex ratio is 914 to 1000 and hence the gender bias again
drew attention to a lingering societal flaw that despite of impressive
economic growth, India has not succeeded in correcting it. Mizoram has
the highest sex ratio of 971 and Haryana with lowest for 830
As per the report published on 31, March 2011, Delhi has the highest
population density in the country, a staggering 11,297 people per square
km and Arunachal Pradesh, has just 17 people per square km.

3. STEEPLED Analysis OF Gujarat

49

3.1 Social Analysis:Current Population of Gujarat in

2014 is 63,891,303
Literacy:The state of Gujarat has also
shown an increase in its literacy
rate by 10 percent in this decade.
Currently it stands at 79.31 percent as compared to last census (2001)
figures of 69.14 percent. Better education facilities by the state
government have proved a vital role in improving overall literacy rate of
Gujarat. According to latest Census of 2011, Male Literacy rate in Gujarat
stands at 87.23 percent while female literacy rate is 70.73 percent.
Religious Composition:Hinduism is the most dominant religion in Gujarat with 89.1% of the
population being Hindus. The other religions include Muslims 9.1%, Jain
and Sikhs 0.1% of the total Population in Gujarat. Gujarati is the official
language of Gujarat while Hindi and English are also widely spoken.
Kutchi, Bhili and Gamit are also spoken in the areas like Kutch region of
Gujarat.
People of Gujarat:The people of Gujarat comprises several different ethnic groups and
tribes, including the nomadic Ahirs, shepherd community of the Garasia
Jats, the craftsmen of the Meghwal tribe and the vibrant colourful Rabadis
who trace their roots to Afghanistan and Sind. There are 290 distinct
communities in Gujarat. And interestingly, as many as 206 of these are
immigrants from neighbouring Rajasthan, Madhya Pradesh & Maharashtra
- and even overseas! The Siddis who live in coastal Saurashtra have
Negroid features typical of the people of Africa. They are descendants of
the African sailors and traders who found their way to Indian shores in the

50

early centuries of the millennium. The majority of the population lives in

small, rustic villages, although about one-third lives in urban areas.

3.2 Technological Analysis:Gujarat State Wide Area Network (GSWAN), worlds second largest IPbased WAN connecting over 2,800 government offices.

The state has the Secretariat Integrated Communication Network (SICN)

with over 7,500 voice connections.

There is facility for online redressing of citizens grievances through the

State Wide Grievance Attention [service on public] Grievances [by
application of] Technology (SWAGAT).

Integrated Workflow and Document Management System (IWDMS)

streamlines documentation in government offices

The state had 26.2 million GSM cellular subscribers and 787,710
internet/broadband subscribers in 2009.
According to estimates by Telecom Regulatory Authority of India (TRAI),
there were 32.4 million wireless connections and 2.1 million wire-line
connections in Gujarat as of March 2010. The state had a atele-density of
58.5.
All district headquarters are provided with back-up support of
transportable V-SAT terminals.
The state also has the State Disaster Resource Network (SDRN), a
database of disaster management related inventory.
51

The Bhaskaracharya Institute for Space Applications and Geoinformatics

(BISAG) has satellite communication facilities with a dedicated bandwidth.

3.3 Economic Analysis:Gujarat has some of the largest business corporations in India. It is one of
the major industrial hubs of India. Industrial products include cement and
petrol. The world's largest ship breaking yard is in Gujarat near Bhavnagar
at Alang. About 87.9% of the total roads in the state are asphalt surfaced.
Its 85% village connectivity with allweather roads is one of the highest in
India.
The Economist referred to Gujarat with double-digit growth rates, Gujarat
continues to outpace growth in other Indian states. This has led to a
booming entrepreneurial economy in Gujarat
Role of State and Economic Reforms:From 1955 to 1991, India as a nation followed the ideology of socialism
and interventionist policy of direct state participation and control and
regulation of economic activities in the economy.
The process of shift in the ideology from state intervention to market
orientation initiated and speeded up since 1991 in India implies
restoration of functioning of market forces in all markets by
a) removing or reducing quantity restrictions on supply;
b) removing price controls or other distortions; and
c) reducing unjustified or unnecessary market interventions by the
government.

Liberalisation is a process of relaxing or reducing the direct restrictions,

regulations and controls on and participation in the economic activities by
52

the government. Such direct interventions existing prior to liberalisation

are conceptually similar to the quantitative restrictions.

As against this, the government can also control and regulate the
economic activities by imposing tariffs, charging fees, levying taxes, etc.
These are conceptually similar to the price-based interventions. In a
federal structure, the price-based reforms in excise and customs duties,
exchange rate and interest rate structure, or administrative price
mechanism typically fall under the jurisdiction of the Central Government.

State governments can exercise control only in matters pertaining to sales

tax, minor taxes and user charges and fees on services provided by them.
While State Governments largely provide approvals and registration to
smaller enterprises, restricting entry and exit of enterprises through
licensing, reservation and specific legislations is largely under the control
of the Central
Government.
The role of a State Government to achieve faster economic growth under
the existing federal structure is limited to what is feasible at the state
level in terms of liberalization and economic policy reforms on one hand,
and the effective resource base and the socio-cultural environment of the
state in relation to the rest of the country on the other hand. It can be
argued that the latter also depend on the policies of the state government
vis--vis other states over a long period of time. The process of economic
policy reforms and liberalisation at the state level, therefore, assumes
special significance in providing a conducive environment for attracting
and promoting private sector activities in the state.
The dimension of inter-state competition in this regard makes the issue
more complicated. Generally, economic reforms are linked to the
restoration of the functioning of the market forces in (a) goods markets,
53

(b) services markets, and (c) factor markets that is likely to promote the
growth of private sector by encouraging it (i) to expand its existing
activities in terms of scale and scope, and (ii) to participate in newer
activities.
Keeping this context in view, we can review the efforts made by Gujarat
government during the nineties to promote the private sector in the state.
Like
several Indian states, Gujarat also used the following three instruments:
(1) providing tax and cost related incentives;
(2) provision of infrastructure and input supplies; and
(3) granting various approvals and clearances particularly to the small-scale,
cottage
(4) restoring the market forces in the land market in the state

Gujarat Indias Economy Power House:-

7.5% contribution

17%

9%

On

On

9.5%
On
On
National GDP

Industry output

Work Force
54

Stock Market

Industrial growth:India's

most

industrialized

states,

Gujarat

maintains

variety

of

industries, the principal ones being general and electrical engineering and
the manufacture of textiles,vegetable oils, chemicals, soda ash, and
cement.
It is one of India's most prosperous states, having a per-capita GDP
significantly above India's average.

During the period 196090, Gujarat established itself as a leader in

various

industrial

sectors

textiles,

engineering,

chemicals,

petrochemicals, drugs & pharmaceuticals, dairy, cement & ceramics,

gems & jewellery, etc. Post-liberalization period saw Gujarat's State
Domestic Product (SDP) rising at an average growth rate of 14% per
annum.
Agriculture:Gujarat is the main producer of tobacco, cotton, and groundnuts in India.
Other major crops produced are rice, wheat, jowar, bajra, maize, tur, and
gram. Gujarat has an agricultural economy; the total crop area amounts to
more than one-half of the total land area.
Animal husbandry and dairying have played a vital role in the rural
economy of Gujarat. Dairy farming, primarily concerned with milk
production, functions on a cooperative basis and has more than a million
members. Gujarat is the largest producer of milk in India. Amul milk cooperative federation products are well known all over India and is Asia's
biggest dairy.
Tourism:

55

Gujarat Tourism refers to the Tourism in Gujarat, the seventh largest

state in India, located in the western part of India with a coastline of
1600 km (longest in India). It is one of the most popular state in the
country for tourists with annual footfall of 19.81 million tourists in 2010
11. Gujarat offers scenic beauty from Great Rann of Kutch to the hills
of Saputara. Gujarat is the sole home of the pure Asiatic Lions in world.
[9]

During the Sultanate reign, Hindu craftsmanship mix with Islamic

architecture, giving rise to the Indo-Saracenic style. Many structures in the

state are built in this fashion. It is also the birthplace of Mahatma
Gandhi and Sardar Vallabhbhai Patel, the great iconic figures during India's
Independence

movement. Amitabh

Bachchan is

currently

the

brand

ambassador of Gujarat Tourism. Khushboo Gujarat Ki' campaign by

Amitabh Bachchan has grown tourism in Gujarat by 14 per cent, twice that
of national growth rate.

Gujarat has recorded highest trend growth rate of 8.2% of per capita
income (PCI) during 2004-2013.
State

Agricultu Industry

Services

Total GDP GDP in Growt Share

Per-

re &

in INR

USD

of

capita

Allied

(Ten Mn)

(Bn)

Rate

India's GDP

56

GDP
Gujarat 96862.4 194778.46 221531.89 513172.8 $96.14 15.33 6.14% 89668
9

Exports and Economic Zones:High on Exports with impressive performance, Gujarats Export share in
India is highest contributing to an average over 14% share in India. Gems
and Jewellery deem for a rise to 25% and over. The Government is
encouraging SEZ (Special Economic Zones) considered as growth engines
that can boost manufacturing, augments exports and generate
employment. These include multi product SEZs and sector specific SEZs
covering textiles, pharma, engineering, chemicals, ceramics, gems and
jewellery and IT/ITES sectors.
Following are some Identified INDUSTRIAL PROJECTS in Gujarat:

Agro Based & Food Processing Industry

Chemical & Petrochemicals
Information Technology
Mineral-Based and Allied Industries
Plastic and Allied Industries
Port-Related Activities & Infrastructure
Textile & Apparels Industry
Gems and Jewellery
Other Sectors

3.4 Environmental Analysis:Geography of Gujarat:57

Gujarat is situated on the western coast of the Indian Peninsula. The state
is bound by the Arabian Sea on the west, Pakistan and Rajasthan in the
north and northeast, Madhya Pradesh in the southeast and Maharashtra in
the south. Based on physiology and culture, Gujarat can be divided into
several regions like Kutch, Saurashtra, Kathiawad, and Northeast Gujarat

Gujarat is third most polluted state after Maharastra & Utter

Pradesh.Which was formed on may 1,1960, has an area of 195984 square
kilometers. This is all about 6% of total area of country.

A unique combination of culture and world-class pro-business

environment which rewards risk and breeds entrepreneurship

A multi-lingual workforce

A concentration of corporate and financial resources

A pool of wealth creators and major stakeholders across various

industrial sectors

137,617 km of road network

5,188 km of railway network

2,200 km gas grid

58

1 International Airport, 6 Domestic Airports and 6 Air-strips 23 power

plants

Gujarat is well-connected to major cities in the USA, EU, Asia and

other Indian metropolitan cities

3.5 Political Analysis:Gujarat is governed by a Legislative Assembly of 182 members. Members

of the Legislative Assembly are elected on the basis of adult suffrage from
one of 182 constituencies, of which 13 are reserved for scheduled
castes and 27 for scheduled tribes. The term of office for a member of the
Legislative Assembly is five years. The Legislative Assembly elects a
speaker who presides over the meetings of the legislature. A governor is
appointed by the President of India, and is to address the state legislature
after every general election and the commencement of each year's first
session of the Legislative Assembly. The leader of the majority party or
coalition in the legislature (Chief Minister) or his or her designee acts as
the Leader of the Legislative Assembly. The administration of the state is
led by the Chief Minister. The current Chief Minister of the state
is Anandiben Patel, who recently took office after Narendra Modi was
elected as Prime Minister of India.

59

After gaining independence in 1947, the Indian National Congress party

(INC)

ruled

theBombay

State (which

included

present-day

Gujarat

and Maharashtra). Congress continued to govern Gujarat after the state's

creation in 1960.
During and after India's State of Emergency of 19751977, public support
for the Congress Party eroded, but it continued to hold government until
1995. In the 1995 Assembly elections, the Congress lost to the Bharatiya
Janata Party and Keshubhai Patel came to power. His government lasted
only two years. The fall of that government was provoked by a split in the
BJP led by Shankersinh Vaghela, who won most of the subsequent polls. In
2001, following the loss of two assembly seats in by-elections, Keshubhai
Patel resigned and yielded power to Narendra Modi. BJP retained a
majority in the 2002 election, and Narendra Modi has since served as
Chief Minister of the state. On 1 June 2007, Narendra Modi became the
longest serving Chief Minister of Gujarat. [62][63] On 23 December 2007, the
BJP won the state elections in Gujarat and Narendra Modi became the
chief minister for the third time in a row and has completed 11 years of
governance on 7 October 2012. On 20 December 2012, the BJP retained
power in the state by winning the state assembly elections for the fifth
time in a row and Narendra Modi again returned to power for the third
time.
The Government of Gujarat has banned alcohol since 1960. Gujarat
government bagged the Best State Award for 'Citizen Security' by IBN7
Diamond States on 24 December 2012.

3.6 Legal Analysis Gujarat:Under the Gujarat Government Rules Of Bussiness,1990

Gujarat - The Department activities can be divided broadly into two wings pertaining to
Labour and Employment..Labour wing is responsible for the implementation of various
Labour

Lawsto

maintaining

60

industrialpeace.

Employment

wing

is

responsible

for

Registration,

Sponsoring

and

giving Vocational Guidance to the interested candidates and collection of

Employment Market

Information.

Its

Objective,

Deciding

rules

and

regulations for worker welfare, labour training and human empowerment

61

3.7 Demographical & Ethical Analysis:Gujarati people form the majority of: Marwaris and Biharis compose large
minorities. In Ahmedabad state, smaller communities are Nepalese,
Portuguese, South Koreans, Tamils, Oriyas, Telugus, Assamese, Bengali,
Anglo-Indians,

Armenians,

Greeks,

Jews,

Tibetans,

Maharashtrians,

Konkanis, Malayalees, Punjabis, and Parsis. The South Korean community

traditionally worked in the local tanning industry and ran restaurants.
Sindhi presence is important here.
Religion
Religions in Gujarat
Perce
nt
Hinduism

89.09%

Islam

9.06%

Christianity

0.5%

Jainism

1.03%

Sikhism

0.19%

Buddhism

0.07%

Others

0.05%

62

Languages:About 59 million people speak Gujarati, making it the 26th most-spoken

native language in the world. Along with Romani, Kutchi and Sindhi, it is
amongst the most western of Indo-Aryan languages.
Gujarat Population Growth Rate:The total population growth in this decade was 19.28 percent while in
previous decade it was 22.48 percent.

Gujarat Density 2011

Total area of Gujarat is 196,244 sq. km. Density of Gujarat is 308 per sq
km which is lower than national average 382 per sq km. In 2001, density
of Gujarat was 258 per sq km, while nation average in 2001 was 324 per
sq km.
Description

Rural

Urban

Population (%)

57.40 %

42.60 %

Total Population

34,694,609

25,745,083

Male Population

17,799,159

13,692,101

Female Population

16,895,450

12,052,982

Population Growth

9.31 %

36.00 %

Sex Ratio

949

880

Child Sex Ratio (0-6)

914

852

Child Population (0-6)

4,824,903

2,952,359

63

Child Percentage (0-6)

13.91 %

11.47 %

Literates

21,420,842

19,672,516

Average Literacy

71.71 %

86.31 %

Male Literacy

81.61 %

90.98 %

Female Literacy

57.78 %

70%

Sector Study

4. Sector Study Of DRC:-

Sector

% age Contribution to
GDP

Agriculture, hunting,forestry and

fishing
Electricity, water and gas

38.20%
0.60%

Mining and Quarrying

14.10%

Manufacturing

4.1%

Construction

7.40%

Wholesale and retail trade

21.40%

Transport storage and

Communications

6.20%

Market services

6.10%

Government Services, Defence

and social security

1.90%

Agriculture Fisheries and Forestry Sector:The agricultural sector in DRC supports around two-thirds of the
population. The major crops are cassava, yams, plantains, rice, and
maize.DRC is not drought-prone but has other problems of poor internal
64

transportation system, which impedes the development of an effective

national urban food-supply system.The land under annual or perennial
crops in DRC constitutes only 3.5% of the total land area. Agriculture is
divided into two basic sectors: subsistence -which employs the vast
majority of the work force andcommercial - which is export-oriented and
conducted on plantations.
Farming in the subsistence segment involves around 4million families on
plots averaging 1.6 ha (four acres), usually a little larger in Savanna areas
than in the rain forest. The subsistence farmers produce mainly manioc,
corn, tubers, and sorghum.
Fish provides the country with the single most important source of animal
protein in the DRC. Total production of marine, river, and lake fisheries in
2003 was estimated at222,965 tons, all but 5,000 tons from inland waters.
PEMARZA, a state agency, carries on marine fishing.
Mining Sector:The Democratic Republic of Congo is potentially one of the richest mining
countries in Africa, based on its vast resources of copper, cobalt and
diamonds. However, with DRC going through a civil war, an uncertain
political situation, corruption and smuggling. This has resulted in the
shortage of development capital that has stifled the development of the
country's industries. The developments the DRC over the last two years
has resulted in some optimism for the country. The response from the
Government appear to be promising, especially relating to the country's
mining industry, as it remains one of the pillars of the country's economy.
Mining activities are concentrated in the southern and eastern parts of the
country, where the famous Copper belt extends in to the DRC from
Zambia near Lubumbashi. Geca mines controls the country's mining
activities, in particular the copper and cobalt mines. Most interest shown
by foreign companies remains focused on the enormous potential of the
Copper belt, where several world class ore deposits remain to be
exploited.
65

Diamonds:Diamonds, the countrys most valuable export, are one of several

resources which have contributed to funding armed conflict in the DRC
from 1998 to 2003.DRC since 2003, have been participating in the
Kimberley Process (KP), an international diamond certification scheme
designed to eliminate the trade in conflict diamonds. Its participation in
this scheme is one element that has led to a significant increase in official
diamond exports. However, the DRC still lacks a strong set of internal
controls to ensure that it can track all diamonds from the mine to the
point of export. Diamonds are still being smuggled out of the country, and
diamonds from neighboring countries are being smuggled in

Oil & Gas:Democratic Republic of Congo is rich in resources. Production from the
upstream oil industry, mainly from offshore fields, is an important
contributor to the national economy. The exploitation of the country's
hydrocarbon resources, mainly from offshore fields, produces
approximately 25,000 bpd.The exploration for oil and gas in DRC began in
the 60's along with the countrys 22 km Atlantic Ocean coastline at the
estuary of the Congo River (Congo) which is sandwiched between the
prolific offshore producing region of northern Angola and its oil-rich
enclave of Cabinda.This exploration continued during the 70's and early
80's and by 1983, 41 wells had been sunk. Through these activities 5
operating oil fields and 1 gas field were discovered, the most significant
finds being offshore. From these the Mibale field, discovered in 1973 by
Chevron and contains 48% of the Coastal Basin's recoverable reserves
and remains Congo's most productive field. The oil and gas industry is
regulated by the Ministry of Mines and Energy which through its Energy
Department controls the public and private companies in the petroleum
and power industries.
66

Telecommunication:There are around 9700 fixed lines and an estimated 6.59 million mobile
subscribers in the country DRC has one of lowest tele-density. The Office
of Congolais des Postes et des Tlcommunications (OCPT) is the public
telecommunications and postal operator in the Democratic Republic of
Congo since 1968 and is the only national fixed line operator in the
country. The DRC was the first country in sub-Saharan Africa to introduce
cellular services by granting a license in 1986 to Telecel International for
an AMPS network.There are eight licensed mobile operators in the country
with localized networks established in larger cities across the country.
Kinshasa has the greatest concentration of subscribers. Although all
licenses specify a national network rollout, in reality, venturing into rebel
held territories in the east and north-east of the country can pose serious
problems for network operators from the side of the Kinshasa
government.Internet services in DRC are available in the major towns of
Kinshasa, Lubumbashi, Matadi, Kikwit, and Kananga. The growth of
internet services is hampered by the low PC penetration and no
availability of fixed lines from the incumbent operator. Many connections
are achieved through wireless access to ISPs or using cellular lines. There
are a total of 4,000 subscribers in the country and an estimated 12,000 to
15,000 users.
Tourism:The government in DRC is giving priority to the development of the local
tourism industry so that the country can win its fair share of the millions of
visitors each year from around the world who want to experience firsthand
some of the very special places that abound on the African continent. The
tourism industry consists of both local and international operators. The
capital city- Kinshasa is served by international airlines. Airports also
provide charter services allowing visitors to access remote parts of the
country not serviced by scheduled airlines. Some of the large American
and European hotel chains have are also present in DRC. International six
star ratings to primitive class all kinds of accommodations are present in
67

the country. Tourism and leisure facilities are being developed. DRC has
diplomatic representation from several countries.

5. Sector Study of India

SECTORAL LIST OF INDUSTRIES

AUTO & ANCILLIARY

Automobile

Indian automobile industry mainly focused on servicing,

Industry

dealership, financing and maintenance of vehicles. The Indian

Automobile industry includes two-wheelers, trucks, cars, buses
and three-wheelers which play a crucial role in growth of the

68

Indian economy.
Indian Aviation Industry has been one of the fastest-growing
Aviation

aviation industries in the world with private airlines accounting

Industry

for more than 75 % of the sector of the domestic aviation

market.
Indian Tractor Industry in 1945 to 1960 because of the War
surplus tractors and bulldozers were imported for land

Tractor
Industry

reclamation and cultivation in mid 1940's. Tractors are an

integral part of mechanization and have a crucial role to play in
increasing agricultural productivity.

FINANCIAL & BANKING

Indian Banking Industrys growth has been more qualitative than
Banking
Industry

quantitative which is expected to remain the same for the coming years.
The projections of India Vision 2020" prepared by the Planning
Commission, also the Draft 10th Plan, the report forecasts that the pace
of expansion in the balance-sheets of banks would be decelerating.

Insurance
Industry

Mutual Fund
Industry

Indian Insurance Industry has got the deep-rooted history. These

evidences are from the writings of Manu (Manusmrithi), Yagnavalkya
(Dharmasastra) and Kautilya (Arthasastra).
The Indian Mutual funds Industry had a rapid growth as a result of
infrastructural development, increase in personal financial assets, and rise
in foreign participation.
The Indian Real Estate Industry in the country is one of great importance

Real Estate

and According to the report of the Technical Group on Estimation of

Industry

Housing Shortage, an estimated their was a shortage of 26.53 million

houses

CONSUMER DURABLES
India is a land of wonderful and marvelous artistic work of wood which is
being appreciated world wide. The rich Indian handicraft and beautiful
Furniture Industry traditional attributes of art and design have established a reputation of

Indian Furniture Industry in the nation and worldwide to be appreciated by

people.

69

The Indian Jute Industry is a very old & predominant in the eastern part of
Jute Industry

India. The Government of India has included the Jute Industry for special
attention in its National Common Minimum Programme.
Indian Leather Industry has developed to a large extent and is the second

Leather Industry

largest producer next to China. The industry is equipped mostly with a

potential for employment generation, growth and exports, with the annual
exports touching 2 billion USD.
Indian Paper industry has created sustainable livelihood in rural areas

Paper Industry

and has helped generating employment for the local population especially
for women to earn their livelihood.
The Indian Plastic industry is facing severe demand crunch in the

Plastic Industry

domestic industry for quite some time. Demand for major polymers was
10 % lower in Q2 this financial year as compared to the same period last
year

Rubber Industry

Indian rubber industry has been growing in along with the strength and
importance, as a part of India's burgeoning role in the global economy.
India Silk Industry is second largest producer of silk, contributing to about

Silk Industry

18 % to the world production. What is however, more noteworthy is the

fact that India's requirement of raw silk is much higher than its current
production at present
Indian Television Industry has been in existence for nearly since four

Television Industry decades. Initially for the first 17 years, it spread haltingly and

transmission was mainly in black & white

TEXTILES
Indian Textile Industry occupies has earned a unique place in our country.
Textile Industry

It is among one of the industries which were earliest to come into

existence in India.

Garment Industry Indias Garment Industry is well-organized enterprise is among the best in

the world. It constitutes of designers, manufacturers, exporters, suppliers,

stockiest, and wholesalers. Indian Garment Industry has carved out a
niche in the global markets and earned a reputation for its durability,

70

quality and beauty.

Indian Weaving Industry has conventionally been one of the most
Weaving Industry promising sectors of huge employment. In fact, after agriculture, the

Weaving Industry is largest provider of work force.

FMCG - FAST MOVING CONSUMER GOODS
India Biscuits Industry seems to be the largest among all the food
industries and has a turn over of around Rs.3000 crores. Indian

Biscuit Industry

subcontinent is known to be the second largest manufacturer of biscuits,

the first being USA.
Soaps are categorized into men's soaps, ladies' soaps and common
soaps. There are few specialty soaps like the Glycerine soaps, sandal

Soap Industry

soaps, specially flavored soaps, medicated soaps and baby soaps.

HEALTH CARE
Government of India set up the Department of Biotechnology (DBT)
Bio technology Industry

under the Ministry of Science and Technology in 1986 with the aim of
enhancing the Biotech Industry in India. Since then DBT has produced
one of the best scientists of the country since its establishment.

Health Care Industry

Indian health care industry growth story is moving ahead neck to neck
with the pharmaceutical industry & the software industry of the nation.
Indian pharmaceutical market in 1970s was almost non-existent.

Pharamaceutical Industry

Today, India has gained immense importance and carved a niche for
itself in the pharmaceutical domain. In fact, it has emerged as a big
mart for the pharmaceutical industry.

INFORMATION TECHNOLOGY & COMMUNICATIION

Indian Information Technology industry is one of the fastest growing
IT Industry

industries in the country. The IT industry has built very valuable brand equity
for itself in the global markets.

METAL & MINING

Indian Aluminium Industry was first established in the year 1808 and it took
Aluminium

almost 46 years to make its production commercially viable. The research

Industry

work of the country took several years resulted in extracting the Aluminium
from the ore.

71

The Indian Copper Industry consisted of a single state-owned company and

Copper Industry

now the copper industry in India takes up about 3 % of the entire world
market for copper.
Indian Jewellry is made scrupulously by hand and was traditionally crafted

Diamond Industry

by family jewelers skilled in a particular style. India`s artisans with traditional

skills dominated contemporary techniques to provide the world
with jewelry that conformed to international standards.
Granite in the form of slabs and tiles has several attractive features, which,

Granite Industry

inter alia, includes extra-fine mirror-polish, scratch-free glossy surface and

durability. Granite can be compared very well with other floor and wall
application materials such as ceramics and marble.
Indian Mining Industry has been a major mineral producer in Asia and

Mining Industry

globally. Currently it is the global producer of chromite, coal, iron ore and
bauxite while enjoying economic growth during the nineties. Mining is over
6000 years old in India.
Pearls have been seen in history and historical legend since Cleopatra's

Pearl Industry

time, when she supposedly dissolved a large pearl in vinegar and drank the
potion to demonstrate her infinite wealth.
Indian zinc industry consists primarily of two gaint players in the market,

Zinc Industry

namely Hindustan Zinc and Binani Zinc. Hindustan Zinc is a producer which
is integrated having its own mines and has a market share of more than
60%.
India is on an upswing when speaking about the Steel Industry because of
the strong global and domestic demand. The rapid economic growth and

Steel Industry

progressing demand by sectors like infrastructure, real estate and

automobiles, at home and abroad, has put Indian steel industry on the
Global Map.

OIL & GAS

Indian Oil and Gas Industry have been successful in fuelling the rapid
Oil Industry

growth of the Indian economy. the Indian Independence Indian Oil

Industry was a very small one in size and Oil was produced mainly
from Assam and the total amount of Oil production

72

POWER
The Indian Power Industry plays a critical role in the economic progress
Power Industry

of the country and has to be emphasized. Before Independence British

controlled the Indian power industry firmly.

RETAILING

Indian Chocolate Industry as today it is dominated by two companies, both

Chocolate

multinationals. The market leader is Cadbury with a lion's share of 70%. The

Industry

company's brands like Five Star, Gems, Eclairs, Perk, Dairy Milk are leaders
their segments.
Bearing a long glowing heritage of cosmetic and beauty, aesthetic makeup

Cosmetic

products is being since olden days and nowadays it appear like an booming

Industry

economy in India which would be the largest cosmetic consuming country in a

next few decades.

Food
Processing
Industry

Jewellery
Industry

Indian Food Processing Industry covers fruit and vegetables; meat and poultry;
milk and milk products, alcoholic beverages, fisheries, plantation, grain
processing, consumer products groups like confectionery, chocolates and cocoa
products, Soya-based products, mineral water, high protein foods etc
India has a glorious history which affects each and every aspect of Indian
lifestyle. Jewelry has always remained an integral part of the Indian lifestyle. The
diverse history of India has great influence on the jewelry styles as well.
Indian Music Industry has a rich musical tradition and one is capable of

Music Industry generating sizeable revenue for the country in every genre the music industry.

There are log of loopholes in the industry due to the unabated growth of piracy.

Retail Industry The first step for the retail system in India was put forward in 1832. Then alteast

a decade later in 1844, the then Governor-General of India Lord Hardinge

allowed private entrepreneurs to set up a rail system in India.
Indian Toy industry is large and growing which needs more organized approach
Toy Industry

to face the challenges of factor distribution & marketing. Many of these toys are
usually imported through Dubai & Malaysia.

73

SERVICE SECTOR
Advertising is one of the key activities for potential business and is equally
Advertising

important as producing something using raw material, or as capital,

Industry

manpower, planning, organizing etc. Publicising the products or services

that the business offers to the targeted customers is called Advertising.
Indian Electronics industry dates back to the early 1960s. Electronics was
one industry initially restricted to the development and maintenance of

Electronic Industry fundamental communication systems including radio-broadcasting,

telephonic and telegraphic communication, and augmentation of defense

capabilities.
Indian Hotel Industry has set up to grow by 15% a year. In the year 2010 as
Hotel Industry

the Delhi capital city of India would hosting the Commonwealth Games
there would more than 50 international budget hotel chains are moving into
India.
The first step for the rail system in India was put forward in 1832. Then

Railway Industry

alteast a decade later in 1844, the then Governor-General of India Lord

Hardinge allowed private entrepreneurs to set up a rail system in India.
The Indian shipping Industry plays a crucial role in Indian economy. As 90%

Shipping Industry of the Nations trade by volume is done via sea. India has been the largest

merchant shipping fleet among the developing nations

Telecom Industry

Indian Telecom Industry started in 1851 when the first operational land lines
were laid by the government near Calcutta (seat of British power).
India's tourism industry is experienced a strong period of growth which is

Tourism Industry

drived by the burgeoning Indian middle class and high spending foreign
tourists who coordinated government campaigns to promote 'Incredible
India'.

74

6. Sector Study of Gujarat

Gas & Petroleum:The largest gas grid will generate opportunities for
transmission and distribution of natural gas to
domestic and industrial users. Three LNG terminals
coming up in the state will provide the fuel for growth.
Refineries and petrochemical complexes in operation,
invites investment in downstream projects

Tourism:-

Excellent opportunities of investment in tourism

infrastructure like beaches, highways, safaris,
pilgrim locations, heritage, marine, water sports,
parks and hotels.

Minerals & Mining

75

Minerals like Bauxite, China Clay, Granite,

Limestone, Marble, Lignite, Quartz provide rich
mine of wealth-ready for commercial exploitation.

Port Infrastructure
With the longest coastline of 1600 km in the country,
dotted with 41 ports and housing India's privately
owned commercial ports - Pipavav and Mundra,
Gujarat services one third of the country's
geographical area and its people. Gujarat throws
open the world of sea to you.

Road Infrastructure
With excellent road network exceeding 74,000 km
already on the ground, private participation for
further development of roads can just be the
route to success.

Biotechnology & Pharmaceuticals

Well developed R&D facilities and network of
institutions providing scope in medical, agricultural,
environmental and industrial biotechnology. With
45% share of India's pharma business, Gujarat
provides right prescription for investment.

Agro & Food Processing

76

Leading producer of isabgol, castor, fennel, seeds,

cumin, groundnut, cotton, mangoes, sapota,
Gujarat provides trade opportunities to reap rich
dividends.

Textiles
Accounts for more than 30% of the industrial
production and 40 % of the employment. There are
92 composite mills, 52 spining units and over
6,00,000 power looms in Gujarat. A wide variety of
textiles is manufactured by these units to meet the
ever growing demand. Investment opportunity in
this sectors exists for setting up of units for morden
ring spinning and open-end spinning, weaving with
high speed looms and shuttel-less technology,
morden process houses with technology of
minimum pollution and low energy cost,
knitwear/readymade garments etc.

Chemicals & Petrochemicals

Chemicals & Petrochemicals are other areas
offering tremendous scope. Gujarat over the years
has transformed into a chemical state from the
erstwhile dominance of textiles. With 25% of the
production share in India, the chemical industry of
Gujarat comprises of organic and inorganic
chemicals, dyes, pesticides, pharmaceuticals,
fertilizers, detergents and rubber chemicals,
offering immense opportunities for profitable
ventures. The discovery of oil and gas in Gujarat
77

have opened up new vistas of opportunities in the

downstream plastic processing industries.

Engineering Industries
Supply plant and machinery and therefore are the
backbone of industrial development in Gujarat. Shipbreaking is another important area, which has grown
by leaps and bounds over last two decades. Scope
also exists for establishment of engineering
ancillaries.

Information Technology
Information Technology and enabled services hold
promise, as they have won acceptance and have
come to stay. Infocities are planned at different
locations. A special IT policy has been announced.
In addition, a tailor-made incentive scheme suiting
to the specific requirements of IT industry is also in
place.

Mining Sector Study

7.Mining Sector Of DRC
Mining in DRC:78

The Mining industry of the Democratic Republic of the Congo is rich in

natural resources. DR Congo is estimated to have $24 trillion worth of
untapped deposits of raw mineral ores, including the worlds largest
reserves of cobalt and significant quantities of the worlds diamonds, gold
and copper. The major ores extracted throughout the DRC are, Cobalt,
Diamonds, Gold, Copper and Oil. Much of the resource extraction is done
in small operations, known as "Artisanal and Small-Scale Mining" (ASM),
which are unregulated in the DRC. Recently, more money is being
invested into the extraction and refining of some of the ores found in the
DRC, primarily copper and cobalt, which may help regulate the extraction
and reduce environmental impacts. Many ASM operations still exist for
minerals such as coltan that can be mined with little capital investment.
ASM operations employ a significant number of DRC's population, with
estimates of up to one fifth of the country or 12.5 million people. Because
artisenal mining operations require little capital they are unregulated and
occur primarily within protected areas, around endangered or threatened
species. Artisenal mining often occurs in riparian zones.
Mine tailings at a Lubumbashi copper mine.
In September 2010, the government banned mining in the east of the
country, attempting to crack down on illegal organisations and corruption.
During periods of violence, resources have been looted from the original
collectors by both Congolese and foreign soldiers, and civilians or they are
extracted by soldiers, locals organized by military commanders (much of
the time Rwandan and Ugandan commanders) and by foreign nationals.
Problems stemming from mining practices include disruption of families,
mining-related illnesses, environmental damage, child-labor, and abuse of
women.

Mass scale looting

79

After Rwanda, Uganda, and Burundis successful invasion of eastern and

southeastern DRC in the Second Congo War, a great deal of what the UN
labeled "mass scale looting" took root. While initial invasion tactics were
still being worked out, military commanders were making business deals
with foreign companies for the Congos vast mineral reserves. Between
September 1998 and August 1999 stockpiles of minerals, agricultural
products, timber, and livestock were illegally confiscated from Congolese
businesses, piled onto trucks, and sold as exports from the confiscating
countries.
Rwandan and Ugandan troops forced local businesses to shut their doors
by robbing and harassing civilian owners. Cars were stolen to such an
extent that Uganda showed a 25 percent increase in automobiles in 1999.
DARA-Forest Company illegally extracted and sold Congolese timber on
the international market. An American Mineral Fields executive allowed
rebels to use his private lear jet for a $1 billion mining deal. Some parallel
the mining corporations rush to acquire coltan rich land in rebel territory
of the DRC to the Conference of Berlin in 1885.

Active extraction phase:When the mass scale looting died down as stocks of minerals were
depleted, soldiers were encouraged by commanders to take part in smallscale looting which started an "active extraction phase".[10] Natural
resources that were not stolen were often purchased with counterfeit
Congolese francs which contributed to inflation. Air transportation
companies that had operated in the Congo disappeared and were
replaced by companies affiliated with foreign armies. The Congolese
government lost out of profits from taxes on natural resources entering
and leaving air fields because air services were controlled by foreign
Rwandan and Ugandan troops who routinely exported coltan from the
Congo. The increase in air transportation networks has also increased
exploitation because of the emergence of new transport routes.

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Rwanda and Uganda have no known production sites for many of the
minerals that were exported at vastly higher rates after their invasion of
the DRC. "Free zone areas" make diamonds difficult to track because they
can be repackaged and "legally" sold as diamonds from that country. The
DRC has been exporting few minerals since the invasion because the
destruction of the rural infrastructure has caused mining and agricultural
outputs to wane.
Coltan is the most profitable mineral export from the Congo, but it is
particularly difficult to track because it is often listed as cassiterite, a
mineral of lesser quality, for which export taxes are lower. Coltan has been
illegally extracted and sold via Burundi since 1995, three years before the
invasion. The International Monetary Fund (IMF) states that Burundi has no
"gold, diamonds, columbotantalite, copper, cobalt or basic metals" mining
operations but has been exporting them since 1998.
In the year 2000 Rwanda spent $70 million supporting about 25,000
troops and Uganda spent $110 million supporting twice as many troops.
Rwanda and Uganda finance their war efforts through commercial deals,
profit-sharing with companies, and taxation among other things. Rwandan
soldiers often steal coltan collected by villagers and sell it to diamond
dealers themselves. From dealing in coltan trade alone the Rwandan army
may have collected $20 million per month and coltan profits have been
used to pay back loans from foreign creditors.
Rebel groups MLC, RCD-Goma, and RCD-ML make their own deals with
foreign businessmen for cash and/or military equipment. Battlefields are
most commonly centered on areas that hold a lot of diamond and coltan
potential and foreign armies occupation of the eastern region is
maintained by illegal resource exploitation.
For $1 million per month Rebel group RCD-Goma gave a coltan monopoly
to SOMIGL which they in turn poured into efforts to gain control from RCDML for mineral-loaded land. To try to get fast cash to gain control of
government land the DRC gave a diamond monopoly to International
81

Diamond Industries (IDI) which was supposed to pay the government $20
million but paid only $3 million and continued to extract diamonds from
the region and sell them internationally. Upon request of the IMF and WB
the DRC is trying to liberalize diamond trade and IDI has threatened to sue
because they had a contract they themselves did not honor.

Corporations and Western countries purchasing coltan from Rwanda,

Uganda, or Burundi are aware of its origin and aid from western donors is
funneled directly into Rwandan and Ugandan war efforts. The German
government even gave a loan to a private German citizen to build his
coltan export business in the DRC, for which he enlisted the help of RCDGoma soldiers.[7] Mineral plunder in the DRC was easy once the central
authority had collapsed because of the extremely weak financial system,
as well as the apparent disregard of illegal conflicts on the part of proper
standards by international corporations and governments that imported
illegal minerals.
The US has documented that many minerals are purchased from the DRC
even though the DRC has no record of exporting them. A lack of state
stability combined with international corporations and foreign
governments interest in investing in Congolese mineral plunder increased
the pace at which the DRC was shook off its fragile foundation. The UN
does an excellent job of identifying the perpetrators of illegal resource
exploitation in the DRC, but was not able to help prevent the economic
exploitation of the country.
In September 2010, it was reported that the FDLR (Forces dmocratiques
de libration du Rwanda), a group of mostly Hutu rebels, was exploiting
timber, gold and coltan in North Kivu and South Kivu.

Foreign involvement:-

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In 2011, at least twenty-five international mining companies were active

in the D.R. Congo according to Datamonitor 360. Canadian-domiciled
mining companies had the highest presence, with nine in total: African
Metals Corporation, Banro Resources Corporation, BRC DiamondCore, El
Nio Ventures Inc., First Quantum Minerals, ICS Copper Systems Ltd.,
Lundin Mining Corp., as well as Anvil Mining Ltd., misidentified as
Australian, and Katanga Mining Ltd, misidentified as British.
By comparison, six firms were incorporated in Australia (Austral Africa
Resources Ltd., BHP Billiton Group, Green Machine Development
Corporation, Lindian Resources Ltd., Mawson West Ltd., Tiger Resources
Ltd.), three in South Africa (African Rainbow Minerals, AngloGold Ashanti,
Chrometco Ltd.), two in the United Kingdom (Mwana Africa PLC, Randgold
Resources Ltd.), two from the United States (Century Aluminum Co.,
Freeport-McMoRan Copper & Gold Inc.), and one each from China (CIC
Mining Resources Ltd., with Japanese Eco Energy Group's African
subsidiary, Eco Project Company Ltd.), Morocco (Managem SA), and
Switzerland (Xstrata plc).
In 2008 and 2009, the Congolese operations of larger international
companies, AngloGold Ashanti, BHP Billiton, and Xstrata were all in the
exploration and development phase, while Canada had four companies,
Anvil Mining, First Quantum Minerals, Katanga Mining, and Lundin Mining
involved in large-scale commercial extraction for several years or more.
In August 2012 the Chinese firm Changfa Mineral Resources acquired the
Mokambo Copper mine project on the Mufulira and Democratic Republic of
Congo border and it is expected to create around 3,000 new jobs when it
begins full-scale operations this year.

Impacts of natural resource extraction on the DRC

Environmental impacts:-

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Resource extraction has many impacts on the cultural and environmental

diversity of the DRC; it is difficult to quantify the environmental
degradation of the country. As it is unstable and difficult for researchers to
enter and do work in the country also it is always difficult to quantify loss
of biodiversity as animals are mobile and the lack of roads and navigable
rivers make transportation into the wilderness areas difficult for
researchers.
Mining can be an intensive process and has affected some wilderness
areas, including national parks and wildlife reserves such as Kahuzi-Biega
and the Okapi Wildlife Reserve, both of which are world heritage sites.
Mining in these areas is typically artisanal; a small scale mining method
that takes place in river beds and can, cumulatively, be very
environmentally damaging. Artisanal mining degrades riparian zones,
creating erosion and heavy silting of the water. The tailings are often
dumped into the rivers and could be contaminated with mercury and
cyanide degrading the health of the river systems putting the wildlife and
people at risk.

Miners and refugees are relocating to parks in search of minerals; a

reported 10,000 have moved into Kahuzi-Biega and 4,000 to the Okapi
Wildlife Reserve. This increases the pressures on wildlife as timber is cut
down and used as fuel wood to cook with, and wildlife is killed for its meat.
Also, as people enter into these areas animals such as primates are
collected for trade on the black market. Others are poached for their
hides, or for the tusks such as elephants.
The extent of logging has been difficult to quantify. Much of the logging
that occurs is primarily for target hardwood species, rather than clearcutting which can be assessed by satellite imaging. Observations have
shown an increased number of logging trucks moving across borders.
Logging destroys valuable habitat for animals and increases the access

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into forested areas making it easier for poachers, miners and refugees to
access areas.

Socio-cultural repercussions:There are many factors which contributed to the Democratic Republic of
the Congos severe socio-economic hardships, and not all resource
extraction operations have had an entirely negative impact on Congolese
society at large. That said, the negative consequences brought about by
some forms of resource extraction, such as coltan mining, are devastating.
For example, worldwide, as demand for goods has increased, so has the
demand for tantalum, or coltan and reportedly, "much of the finance
sustaining the civil wars in Africa, especially in the Democratic Republic of
the Congo, is directly connected to Coltan profits"
Within the DRC, there are both wars between Congolese and conflicts
between neighboring nations. Although these wars have components of
inter-tribal conflict, in several cases the conflicts have been induced by
external forces, such as changes in international support and demands for
resource extraction. As a result of tantalum mining and wars, societies in
the eastern regions of the Congo are experiencing heightened physical
and economic insecurity, health problems and human-rights violations.

In the Ituri region, a violent conflict is occurring between the Lendu and
the Hema tribes. Analysts have determined that the conflict has intertribal
as well as economic components brought about by the patterns of coltan
extraction.
A health problem brought about by resource extraction is the effect of
tantalite (coltan) mining on women and children who work in the mines.
As more women are turning to mining for income, they are faced with
dangerous tasks such as pounding the stone which contains tantalum. The
release of fibers that get into the lungs is affecting both the women and
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their babies, who are passengers on their mothers backs.[59] "More

worrying, the majority of babies, often on the backs of their mothers
during the horrendous task of pounding coltan, have started showing
similar signs of disease and pain to those of their mothers".
Child labour is common in DRC, and the mining industry is no exception.
[60] Children in the region are also being forced and coerced to become
soldiers.
The resulting labor shift from farming to mining has been linked to food
shortages and insecurity. The DRC has some of the richest soils and
favorable climatic conditions for food production on the African continent.
Before Mobutus reign, the DRC was one of the major exporters of food to
the rest of Africa. "The richly fertile soil (especially that in the eastern
highlands which is volcanic in origin) could produce enough food to feed
half of Africa, but the country is so poor that at present its people do not
produce enough food to feed themselves".

Environmental and occupational health:Civilian populations have suffered significant health impacts from mining
and the associated conflicts. The exploitation of natural resources is
directly related to the ongoing conflict in the region and subsequent
humanitarian crises. These health impacts come from labor, human rights
violations, and collapse of social norms.

Health and safety standards are largely specified in Congolese law, but
government agencies have not enforced them effectively. Because of this,
there are many grave labor violations. Minimum wage laws are rarely
followed at mines. Work week hour standards, overtime payment and rest
periods are largely ignored as well. Child labor laws are rarely enforced.
Child laborers make up to 30% of the mining labor force. Because of all of
this, deaths and violent injury at mining work sites are common place.
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Civilians, including large numbers of children, have been regularly forced

into labor, especially as miners and soldiers. Many miners become
enslaved when they fail to pay back debt to their employer.
Rebel and militia groups commit widespread human rights abuses,
including rape, enslavement, torture, disappearances and killing of
civilians. These groups compete for finances from illegal mining. Reports
indicate that corporations have facilitated these abuses by obtaining
minerals from areas controlled by these groups.
Sexual violence is an especially widespread and devastating issue across
the country. Between 1.69 and 1.80 million women reported being raped
in their lifetime. Around mines, survival prostitution, sex slavery, and
forced child prostitution has been observed. This widespread sexual
violence contributes to the spread of HIV/AIDS, as well.
During the Second Congo War, 3 million civilians died, largely attributed to
malnutrition or disease. Nearly as many were internally displaced.
Destruction of agricultural land and cattle, and the draw of money through
mining led to a decrease in food access and increase in malnutrition.
Assessment and assistance by outside organizations has been difficult.
Access to mining areas is limited by corrupt government officials and
hostile militias. Recently, reductions in mortality rate have been
documented. This is linked to improvements in security, humanitarian and
politic issues. These improvements, however, are limited by continued
unregulated mining. Exploitation of natural resources by rebel groups
supplying international corporations continues to impair the growth of
peace and stability.

In the United States, the DoddFrank Wall Street Reform and Consumer
Protection Act requires retailers and manufacturers to track and publish
the amount of conflict minerals sourced from the Democratic Republic of

87

the Congo. A recent event, the exact regulations have not yet been
determined.

Mining licence:In August 2012, the government of the DRC granted the mining licences
for the Kamoa Project that cover 400 square kilometres. The licences are
valid for 30 years and can be renewed for 15 years at a time, until the end
of the mine's life.

Gold mining in Congo:-

88

Gold miners in eastern DRC no longer fear warlords but now they are
exploited by a plague of corrupt government officials and security
personnel.

They all demand illegal taxes, fees and levies from the miners without
delivering any meaningful services in return, according to a major
research report by the Southern Africa Resource Watch (SARW). Highlights
the poor governance of the mining sector, which could be the driving force
89

behind genuine socio-economic development in the region, and the daily

battle for survival by thousands of artisanal and small scale gold miners,
who produce nearly all of eastern DRCs gold.
The report, which was based on 10-months of research in gold-mining
communities in the provinces of North and South Kivu, Maniema and
Orientale by a team of 12 Congolese researchers and a renowned
international expert, found that:

The artisanal gold-mining communities of the Kivus, Maniema and

Orientale are in the grip of a historic gold rush, complete with all the
classic symptoms chaotic migrations, poor sanitary and health
conditions, dangerous mine excavation techniques resulting in
frequent fatalities, increasing criminal exploitation of the entire
process, and incalculable environmental costs;

Artisanal gold mining produces between US$1-2 billion per year and
undeniably represents the biggest single source of income for
eastern DRC and the best hope for economic growth and
development;

But gold miners have not benefited from this gold rush and from
notable improvements in the broader economic and security
context, which include the establishment of peace in most goldmining areas; record-breaking gold prices on world markets; and the
restructuring of government agencies, partly supported by the
international community, to increase supervision and enforcement
of laws in all mining areas;

Gold is the economic lifeblood of the eastern DRC, but the

Congolese government lacks any credible and reliable institutional
presence, any statistical data, or any genuine plan to collect data.
Inevitably, all policy implementation efforts for the informal gold
sector are ineffective; and,
90

While the exploitation of artisanal and small-scale miners continues,

the identity of those responsible has changed. They are no longer
warlords and militia leaders but government administrators,
members of state military and security organisations, and
racketeers.

According to the report, the cumulative effect of the regular shakedowns

by state agents and the trading power of the racketeers have left most
miners mired in desperate poverty and communities struggling to survive
despite living on top of such rich gold reserves.
The town of Bunia and the surrounding region, where thousands of
miners dig for their living, have not been disturbed by wars or rebellions
since 2005, yet the majority of the population is in the grip of acute
poverty and desperation, said Georges Bokundu, SARW DRC Coordinator.
This has nothing to do with wars and rebellions and everything to do with
irresponsible policies and the greed of state agents and so it is up to the
Congolese government to act.
The report concludes with four key recommendations to improve
conditions for artisanal miners in eastern Congo and pave the way for
gold-led socio-economic development:
Stop the criminal exploitation of the gold-mining sector The government
must act to halt the increasingly criminal exploitation of artisanal and
small-scale miners by a plague of government bureaucrats, officials and
security agents and end the illegal export of almost 100 percent of the
gold produced in the east.
Provide adequate physical protection to miners If the government
provided adequate physical protection to artisanal and small-scale miners
by reallocating funds to support legitimate army regiments gold
production would increase and so would the sectors impact on individual
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livelihoods and the regions economy.

Protect artisanal and small-scale gold miners from racketeers The
government needs to tackle the racketeers, who are buying the miners
gold at unfairly low prices and selling them food, tools and other
merchandise at hugely inflated prices and leaving them constantly
digging for survival.
Reorganise or close SAESSCAM The Service for the Assistance and
Supervision of Artisanal and Small-Scale Mining (SAESSCAM) was
established to support miners but its underpaid or often unpaid agents
simply extort taxes, levies and other fees without providing any
services in return. The government must totally restructure the institution
or close it down.
A dozen SARW researchers visited dozens of gold mining sites,
interviewing hundreds of miners, their wives and children, gold traders,
government officials, soldiers, officers and agents of the national military,
security and police organizations. The project is on-going. Research teams
continue to monitor and assess the general economic and trade
conditions, as well as the security, labour, gender, health and
environmental issues affecting artisanal and small-scale mining
communities. The results of the on-going research will be published in
separate reports during the coming months.

8.Mining industry in india

Mining in India- An Introduction
The Mining industry in India is a major economic activity which contributes
significantly to the economy of India. The GDP contribution of the mining
industry varies from 2.2% to 2.5% only but going by the GDP of the total
industrial sector it contributes around 10% to 11%. Even mining done on

92

small scale contributes 6% to the entire cost of mineral production. Indian

mining industry provides job opportunities to around 700,000 individuals.
India is the largest producer of sheet mica, the third largest producer of
iron ore and the fifth largest producer of bauxite in the world. India's metal
and mining industry was estimated to be $106.4bn (68.5bn) in 2010.
Indian coal production is the 3rd highest in the world according to the
2008 Indian Ministry of Mines estimates. Shown above is a coal mine in
Jharkhand.
However, the mining in India is also infamous for human right violations
and environmental pollution. The industry has been hit by several high
profile mining scandals in recent times.
Mining is one of the core sectors that drive growth in an economy. Not
only does it contribute to GDP, it also acts as a catalyst for the growth of
other core industries like power, steel, cement, etc., which, in turn, are
critical for the overall development of the economy. Our analysis has
shown that every one percent increment in the growth rate of mining and
quarrying results in 1.2 1.4% increment in the growth rate of industrial
production and correspondingly, an approximate increment of 0.3 percent
in the growth rate of Indias GDP.
After clocking an average growth rate of 4.8% over the 5 years between
2006-07 and 2010-11, the sector has witnessed negative growth of 0.6%
for two consecutive years now (2011-12 and 2012-13). The mining sector
in the last couple of years has been hit hard due to policy paralysis on a
whole gamut of issues, irrespective whether they are in the domain of the
Centre of the States. As a result mining projects across the country has
remained stalled owing to court cases, environmental, regulatory and land
acquisition issues. The sector has also been reeling under high borrowing
costs.

93

Moreover, despite Indias significant geological potential, the country

does not rank very high in terms of its mineral resource base amongst
similarly geological endowed nations. It is also a matter of concern that
though as per National Mineral policy, 2008, private sector should have
been at the forefront of mineral production but the public sector continues
to play a dominant role accounting for 68% of mineral production during
2011-12. Clearly policies and incentives have not been conducive for the
private sector players to participate more actively.
There is significant mineral potential that still lay untapped in India for
the growth of mining but historically, mining sector has struggled to
exploit the potential due to three big factors i.e. regulatory and
administrative procedures, inadequate infrastructure facilities and
sustainability.
These challenges have limited the overall investment in mining and
exploration activities in India, as evident from very low inflow of FDI in the
mining sector. Indias spend on mineral exploration is less than 0.5% of
the global spending on exploration in 2010, much below its fair share
given the size of mineral resource potential.
Given the availability of mineral wealth in India, the Ministry of Mines,
Government of India, has targeted significantly higher share of GDP from
mining. It aims to increase share of mining and quarrying in GDP from
current 2% of GDP to 5% of GDP over the next 20 years. This requires
mining to grow at 10-12% per annum. On the other hand, within two
decades of liberalized economy, much in contrast with the constitutional
objectives, mining as a sector has come to be associated with scams,
conflicts, violence and ecological degradation. The conflict it engenders is
enormous and wide spread. The future should therefore usher in an era of
mineral development with socio-economic development as the focus.
At present, nearly half of Indias total mineral production (including oil and
gas) in value terms is contributed by seven key mining states, namely
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Odisha (9.6%), Andhra Pradesh (9.0%), Rajasthan (7.9%), Chhattisgarh

(7.8%), Jharkhand (6.5%), Madhya Pradesh (4.8%) and Karnataka (3.6%).
The seven big mining states also account for a third of Indias population
but are relatively backward. Growth in mining could play a critical role in
the social and economic development of the people of these states as
these seven states also account for a majority of the key minerals
reserves in India.

The tradition of mining in the region is ancient and underwent

modernization alongside the rest of the world as India gained
independence in 1947. The economic reforms of 1991 and the 1993
National Mining Policy further helped the growth of the mining sector.
India's minerals range from both metallic and non-metallic types. The
metallic minerals comprise ferrous and non-ferrous minerals, while the
nonmetallic minerals comprise mineral fuels, precious stones, among
others.
Minerals subsequently found mention in Indian literature. George Robert
Rappon the subject of minerals mentioned in India's literatureholds
that:
Geographical distribution:The distribution of minerals in the country is uneven and mineral density
varies from region to region. D.R. Khullar identifies five mineral 'belts' in
the country: The North Eastern Peninsular Belt, Central Belt, Southern
Belt, South Western Belt, and the North Western Belt. The details of the
various geographical 'belts' are given in the table below:

Further, to assess the domestic growth potential for mining sector in India,
one can also look at the future growth potential of its key consumer
industries, for example, steel, cement, etc. The Planning Commission, in
its 12th five year plan, had set a target of 9% for the GDP growth rate
which subsequently has been revised to 8%. Nevertheless, this implies a
95

huge spurt in sectors like construction and power generation which in turn
will lead to substantial capacity addition in the steel, cement and thermal
power sectors. These industries, being key consumers of minerals like iron
ore, limestone and copper, will drive significant growth in consumption
demand of minerals in India.
In addition to domestic demand growth, the Indian mining industry is also
likely to see accelerated growth in exports demand. The key minerals
exported from India are iron ore (although this has dipped significantly at
present), alumina, and chromite. According to industry forecasts, the
global demand for these minerals is expected to accelerate in the future.
For example, as shown in Exhibit 1.7, the global demand for both
seaborne iron ore and aluminium is expected to grow at the rate of 10%
per annum while the global demand for ferrochrome, an alloy containing
chromites, is expected to grow at the rate of 7% per annum in the coming
years.
Thus, there are substantial demand side drivers for the growth of Indias
mining industry.
Supply side potential
In global rankings of mineral reserves, India occupies a dominant position
for key minerals, for example, coal and iron ore. India has the worlds 4th
largest coal reserves, which is equivalent to 12% of global reserves. India
also possesses the7th largest reserves of iron ore, 3rd largest reserves of
chromite and 5th largest reserves of manganese ore in the world. In other
words, at the current consumption rank, India has proven reserves for
175200 years for coal, and 4050 years for iron ore and limestone.
As far as imports are concerned, more than 85 % of the imports are
accounted for by petroleum and diamond. The former is essential to meet
the energy requirements whereas the import of raw diamond is for value
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added re-exports. India continues to be largely self sufficient in minerals

which constitute primary mineral raw material to industries like iron ore,
ferro alloys, aluminum, cement etc and mineral fuels like coal (except low
ash coking coal) etc..
Indias Position in Reserves of Key Minerals - 2010
Minerals

Current

Indias rank in

reserves (mn

reserves

Reserve life (years)

tonnes)
Coal

113000

4th

187

Limestone

12715

55

Iron ore

7000

7th

47

Bauxite

900

6th

66

Barite

34

2nd

30

Chromite

66

3rd

24

Zinc Metal

11

7th

Manganes

138

5th

47

7th

26

Copper

Alluminiu

2.3

5th

e ore
Lead
metal

Source: Ministry of Mines, Government of India, US Geological Survey,

Goldman
Sachs & Morgan Stanley Metals Playbook
In addition to the internationally recognized proven and probable
reserves, India has significant quantity of mineral resources which are
still under various stages of exploration. A quick look across key minerals
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highlights the fact that the unproven resources are more than twice the
proven reserves. With appropriate investments in infrastructure and
technology used in exploration, there is significant potential for further
increase in the realizable mineral wealth of India.
Three Key Challenges to Growth Faced by Industry
Thus there is an enormous potential for growth of mining in India. This is
driven by both the positive demand scenario and substantial existing
reserves and potential resources. However, historically, mining sector
has struggled to exploit this potential due to three key reasons:
a. Regulatory challenges
There are a set of regulatory and administrative challenges in India which
restrict the growth of mining in India. To illustrate:

The current regulatory provisions make it difficult, if not

impossible, to transfer mining leases. The prospecting licenses are

not transferable.
There is no guarantee of obtaining mining lease even if a
successful exploration is done by a company. The mining licenses
are typically awarded on a first come first serve basis in principle

but there is no transparent system.

Getting all approvals for mining is a long drawn process with
multiple agencies involved. Further, there are substantial delays in

disposal of various applications for clearances.

There are limited incentives for private sector to invest in
improvement of technology and equipment in mining projects as
the mining industry is the most heavily taxed industry in India.

These challenges have limited the overall investment in mining and

exploration activities in India. This is demonstrated by the fact that
despite being one of the few sectors in India which allows 100% Foreign
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Direct Investment (FDI) (with the exception of atomic and fuel minerals),
the actual inflow of foreign investment in the mining sector in India has
been quite low. Further, Indias spend on mineral exploration is less than
0.5% of the global spending on exploration in 2010 much below its fair
share given the size of our landmass and our potential mineral wealth.
Even this exploration activity has largely been limited to public sector
enterprises.
b. Inadequate infrastructure facilities.
The inadequacy of infrastructure is related to the absence of proper
transportation and logistics facilities. Many of our mining areas are in
remote locations and cannot be properly developed unless the supporting
infrastructure is set up. For example, the railway connectivity in most key
mining states is poor and it has inadequate capacity for volumes to be
transported which adds to the overall supply chain cost. The government
foresees that steel production capacity in the country by the year 2025
will increase to 300 million tonnes per annum. This would require Indian
Railways freight capacity to be around 1185 million tonnes, for only steel
and its raw material requirements. In 2012-13 the total freight carried by
Indian railways was 1,010 million tonnes. Therefore, unless significant
initiatives are taken and are promoted by Indian Railways through private
participation to address the anticipated logistics requirement of the
mining and manufacturing industries, the risk foreseen is too significant in
magnitude to hamper the growth of industry.
Further, there is inadequate capacity at ports for handling minerals and
the rail / road connectivity to some ports is very poor. The key constraints
are:
There is capacity constraint for capital dredging,
Existing ports are unable to meet the expected 10% growth in traffic at
ports,

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High dwell time of cargo in Indian ports due to manual workflow and low
level of IT penetration
Lack of public investment in capacity building
Slow evacuation of cargo from ports due to limited hinterland
connectivity by rail/road.
c. Sustainability
Mining activity in any area impacts the environment as well as the socioeconomic set-up. Therefore, ensuring that the adverse impacts are
minimized and the benefits from mining to the impacted community are
optimized becomes critical for mining to be being carried out in a
sustainable manner.
The importance of sustainability in mining, in India, can be illustrated by
the fact that a large percentage of mining proposals has failed to get
environmental / forest clearance from the Ministry of Environment and
Forests, Government of India. For example, out of 2,842 mining projects
proposed for forest clearances in the last17 years, only 1,723 projects,
which constitute about 60% of the total, have been issued forest
clearance by the central government. The remaining 40% projects are
either still pending or have been rejected / closed on grounds of
sustainability.
Further, obtaining the clearance is a very long drawn process, which is
illustrated by the fact that out of the total pending projects in 2012, 63%
have been pending for more than two years.
In addition to the environment and forest clearances, mining projects also
have to comply with several requirements aimed at enhancing the welfare
of the local community. Obtaining these approvals and clearances is a
tedious process as it involves multiple agencies and local governing
bodies. Over and above these regulations, the mining companies also
need to take the local communities along, to ensure that they have the
support of the local side for their projects. As a result, several projects

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are impacted with challenges by way of opposition from local communities

/ NGOs, difficulties in land acquisition, denial of clearances from the
governing bodies, etc. A few instances of some of the major projects that
have been impacted in recent past are as follows:

Pohang Steel Company (POSCOs) US$ 11 billion investment plan

for mining and steel production: strong opposition from local people

over land acquisition.

Vedantas proposed US$ 1.7 billion bauxite mining project in
Odisha: opposition by local community and eventual withdrawal of

the forest clearance.

Utkal alumina project, which was a US$ 1 billion joint venture
between M/s. Hindalco (India) and Alcan (Canada) to mine and
refine bauxite: delayed by more than a decade due to challenges in
land acquisition Uranium Corporation of India Ltd., UCILs two
mining projects worth US$ 200 million and US$ 225 million in
Meghalaya and Andhra Pradesh respectively: opposition from local
communities and organizations on the grounds of likely effects of
radiations on human health and environment.

Unresolved Policy Issues

Notwithstanding the proposed MMDR Bill 2011, there are certain major
policy issues which deserve serious consideration:
1. So far as mining activity is concerned, India isa single economic space
and as such, more delegation of powers to the state governments may
jeopardize the interests of mineral development.
2. While the National Mineral Policy 2008 remains yet to be implemented,
the mineral policies of the state governments are at variance with the
same. In fact, the procedures in the grant of mineral concessions also vary
from state to state. It would therefore be necessary that the state
governments may be restricted to formulate their mineral policies only to
minor minerals.
101

3. To curb the menace of illegal mining and to ensure scientific mining, it

would be necessary to strengthen and re-structure the Departments of
Mines & Geology of the state governments on a uniform pattern.
4. As mineral exploration is key to attracting investment in the mining
sector, separate legislation and procedure for grant of prospecting /
exploration licenses is required. At present, the same procedure is being
adopted as that of a mining lease in grant of prospecting licenses whereas
mineral investigation does not involve acquisition of land, it being a
temporary activity for a short period.
5. There is incorrect definition of prospecting activity in Forest
(Conservation) Act 1980. The provisions of guidelines 1.3 (v) of the
handbook exempts certain activities like oil drilling, transmission of power
lines etc from forest clearance but in case of prospecting though few drill
holes are permitted (16 boreholes per 10 sq km) vide notification no 53/2007-FC dated August 19th, 2010 of Ministry of Environment and
Forests, but the collection of surface samples through trenching / pitting
are prohibited. In fact, the prospecting activity has not been defined
properly in the notification and entry to forest land remains a big issue to
the prospectors. As most of the mineral bearing lands overlap the forest
lands in the country, the provisions of Forest (Conservation) Act 1980
need to be amended in the interest of detailed prospecting and
exploration for mineral investigation, where no degradation of forest is
involved; rather, prospecting activity needs to be exempted from forest
clearance.
6. There is a tendency on the part of the state governments to give
preference to value addition and reservation of potential areas to the
reservation of large potential areas which have remained blocked for a
long period without any exploration and development. At the same time,
there is hardly any de-reservation of such potential areas.
102

7. Geological Survey of India (GSI) has identified an area of 5.71 lakh

square kilometres as Obvious Geological Potential (OGP) area in the
country. But there is hardly any detailed mineral exploration activity in the
absence of timely follow-up actions on GSIs recommendations.
8. A transparent, simple and stable fiscal regime plays a significant role in
the growth of the industry for attracting investment. However, Indian
mining sector is already amongst the highest taxed in the world with
effective tax of about 45% compared to other countries which ranges
between 35 to 40% (China-32%, Russia-35%, Australia- 39%, Chile 40%
and Canada- 35 %). The Draft MMDR Bill, 2011 proposes a number of
additional taxes and levies thereby taking the effective taxation to more
than 60%. In addition to above there is huge additional burden from
revision of royalty rate and stamp duty. Taxes/duties/cess etc. should not
be prohibitive and should help the industry to survive, sustain and grow.
Further any new taxes/duties/cess should take into consideration existing
burden on the sector.

Mineral Belt Location Minerals found

North Eastern Peninsular Belt Chota Nagpur plateau and the Orissa
plateau covering the states of Jharkhand, West Bengal and Orissa. Coal,
iron ore, manganese, mica, bauxite, copper, kyanite, chromite, beryl,
apatite etc. Khullar calls this region the mineral heartland of India and
further cites studies to state that: 'this region possesses India's 100
percent Kyanite, 93 percent iron ore, 84 percent coal, 70 percent
chromite, 70 percent mica, 50 percent fire clay, 45 percent asbestos, 45
percent china clay, 20 percent limestone and 10 percent manganese.'
Central Belt Chhattisgarh, Andhra Pradesh, Madhya Pradesh and
Maharastra. Manganese, bauxite, uranium, limestone, marble, coal, gems,
mica, graphite etc. exist in large quantities and the net extent of the
minerals of the region is yet to be assessed. This is the second largest belt
of minerals in the country.
103

Southern Belt

Karnataka plateau and Tamil Nadu. Ferrous minerals and

bauxite. Low diversity.

South Western Belt Karnataka and Goa. Iron ore, garnet and clay.
North Western Belt Rajasthan and Gujarat along the Aravali Range. Nonferrous minerals, uranium, mica, beryllium, aquamarine, petroleum,
gypsum and emerald.
India has yet to fully explore the mineral wealth within its marine territory,
mountain ranges, and a few states e.g. Assam.
Agencies involved in exploration:In India, systematic surveying, prospecting and exploration for minerals is
undertaken by the Geological Survey of India (GSI), Oil and Natural Gas
Corporation (ONGC), Mineral Exploration Corporation Limited (MECL),
National Mineral Development Corporation (NMDC), Indian Bureau of
Mines (IBM), Bharat Gold Mines Limited (BGML), Hindustan Copper Limited
(HCL), National Aluminium Company Limited (NALCO) and the
Departments of Mining and Geology in various states. The Centre for
Techno Economic Mineral Policy Options (C-TEMPO) is a think tank under
the Ministry of Mines which looks at the national exploration policy.
Minerals:The distribution of minerals in India according to the United States
Geological Survey.
Along with 48.83% arable land, India has significant sources of coal
(fourth-largest reserves in the world), bauxite, titanium ore, chromite,
natural gas, diamonds, petroleum, and limestone. According to the 2008
Ministry of Mines estimates: 'India has stepped up its production to reach
the second rank among the chromite producers of the world. Besides,
India ranks 3rd in production of coal & lignite, 2nd in barites, 4th in iron
ore, 5th in bauxite and crude steel, 7th in manganese ore and 8th in
aluminium.'
104

India accounts for 12% of the world's known and economically available
thorium. It is the world's largest producer and exporter of mica,
accounting for almost 60 percent of the net mica production in the world,
which it exports to the United Kingdom, Japan, United States of America
etc. As one of the largest producers and exporters of iron ore in the world,
its majority exports go to Japan, Korea, Europe and the Middle East. Japan
accounts for nearly 3/4 of India's total iron ore exports.[17] It also has one
of the largest deposits of manganese in the world, and is a leading
producer as well as exporter of manganese ore, which it exports to Japan,
Europe (Sweden, Belgium, Norway, among other countries), and to a
lesser extent, the United States of America.

Production:The net production of selected minerals in 2005-06 as per the Production

of Selected Minerals Ministry of Mines, Government of India is given in the
table below:

Mineral

Quantity

Unit

Mineral

type
Coal

403

Lignite

Million tones
29

Fuel

Million tonnes

Fuel
Natural Gas

31,007

Million cubic metres

Crude Petroleum 32
Bauxite

Million tonnes

11,278

Thousand tones

Fuel
Fuel
Metallic

Mineral
Copper

125

Thousand tonnes

105

Metallic Mineral

Gold

3,048

Thousand grammes

Metallic

Mineral
Iron Ore

140,131

Lead

Thousand tonnes

Metallic Mineral

93

Thousand tonnes

Metallic

1,963

Thousand tonnes

Metallic

Mineral
Manganese Ore
Mineral
Zinc

862

Diamond

60,155

Gypsum

3,651

Limestone
Phosphorite

170
1,383

Thousand tonnes
Carats

Metallic Mineral
No- Metallic Mineral

Thousand tonnes
Million tonnes
Thousand tonnes

Non Metallic Mineral

Non Metallic Mineral
Non Metallic Mineral

Potential and Opportunity for Significant Growth of Mining in

India
India produces about 87 minerals that include 4 fuel minerals, 3 atomic
minerals, 10 metallic minerals, 47 non-metallic minerals and 23 minor
minerals (including building & other materials). India occupies a dominant
position in the production of many minerals across the globe.
There are close to 3000 mines in India. Number of reporting mines during
the last decade has been around 3000 to 3200. However, during 2010-11,
it was 2928, out of which, 573 were fuel mines, 687 were mines for
metals, and 1668 mines for extraction of non-metallic minerals. Of the
total number of about 90 minerals, the three key minerals are coal,
limestone and iroore.

106

There are 560 Coal mines (19% of total number), 553limestone mines
(19% of total number) and 316 iron ore mines (11 % of total number).
They comprise about half of the total number of reporting mines. The
number of mines engaged in extraction was also significant in cases of
bauxite (189), manganese (141), dolomite (116) and Steatite (113). As
seen in Exhibit 1.3, with regard to production of these three key minerals,
India ranks 3rd in coal production, 3rd in limestone production and 4th in iron
ore production, in the world as of 2010.
Indias Production Rank across Key Minerals 2010
Minerals

Key application

Total production

Indias rank in

industry

(000 tonnes)

global
production

Coal

Power, Steel, Cement

537000

3rd

Limestone

Cememt,Iron&Steel,

240000

3rd

Chemicals
Iron ore

Iron& Steel

260000

4th

Bauxite

Transportation,

18000

4th

1000

2nd

3800

2nd

750

4th

Iron& Steel, Packaging

1000

5th

Paints

95

6th

Packaging,
Construction
Barite

Oil& Gas, Paints,

Plastics

Chromite

Steel, Dye& Pigment,

Preservative,
Refractory

Zinc Metal

Iron& Steel,
Communication
equipment

Manganese
ore
Lead metal

107

Copper

Electronics,

191

10th

1400

7th

Architecture, Alloys
Alluminium

Transportation,
Packing, Construction

Source: Ministry of Mines, Government of India, US Geological Survey,

Goldman Sachs & Morgan Stanley Metals Playbook

Issues with mining:One of the most challenging issues in India's mining sector is the lack of
assessment of India's natural resources. A number of areas remain
unexplored and the mineral resources in these areas are yet to be
assessed. The distribution of minerals in the areas known is uneven and
varies drastically from one region to another. India is also looking to follow
the example set by England, Japan and Italy to recycle and use scrap iron
for ferrous industry.
The first National Mineral Policy (NMP) was enunciated by the Government
in 1993 for liberalization of the mining sector. The National Mineral Policy,
1993 aimed at encouraging the flow of private investment and
introduction of state-of-the-art technology in exploration and mining. In
the Mid-Term Appraisal of the Tenth Five-Year Plan, it was observed that
the main factors responsible for lack of success of the Policy were
procedural delays in the processing of applications for mineral
concessions and the absence of adequate infrastructure in the mining
areas. To go into the whole gamut of issues relating to the development of
the mineral sector and suggest measures for improving the investment
climate the Mid-Term Appraisal had proposed the establishment of a High
Level Committee. Accordingly, the Government of India, Planning
108

Commission, constituted a Committee on 14 September 2005. under the

Chairmanship of Shri Anwarul Hoda, Member, Planning Commission .The
Committee made detailed recommendations on all of its terms of
Reference in December 2006 .Based on the recommendations of the High
Level Committee, in consultation with State Governments, the
Government replaced the National Mineral Policy, 1993 with a new
National Mineral Policy on the 13th March, 2008.
Under the British Raj a committee of experts formed in 1894 formulated
regulations for mining safety and ensured regulated mining in India. The
committee also passed the 1st Mines act of 1901 which led to a
substantial drop in mining related accidents. The accidents in mining are
caused both by man-made and natural phenomenon, for example
explosions and flooding. The main causes for incidents resulting in serious
injury or death are roof fall, methane gas explosion, coal dust explosion,
carbon monoxide poisoning, vehicular accidents, falling/slipping and
hauling related incidents.

In recent decades, mining industry has been facing issues of large scale
displacements, resistance of locals - as reported by the Indian journalist
Aditi Roy Ghatak in the magazine D+C Development and Cooperation -,
environmental issues like pollution, corruption, deforestation, dangers to
animal habitats.

Mining in India
India's mining industry was the 4th largest producer of minerals in the
world by volume, and 8th largest producer by value in 2009. In 2013, it
mined and processed 89 minerals, of which 4 were fuel, 3 were atomic
energy minerals, and 80 non-fuel.] The government owned public sector
accounted for 68% of mineral produced by volume, in 2011-12.
Nearly 50% of India's mining industry, by output value, is concentrated in
eight states - Odisha, Rajasthan, Chhattisgarh, Andhra
109

Pradesh, Telangana, Jharkhand, Madhya Pradesh and Karnataka. Another

25% of the output by value comes from its offshore oil and gas resources.
India operated about 3,000 mines in 2010, half of which were coal,
limestone and iron ore. On output value basis, India's was one of five
largest producers of mica, chromite, coal, lignite, iron ore, bauxite, barites,
zinc, manganese; while being one of the 10 largest global producers of
many other minerals. India was fourth largest producer of steel in the
world in 2013, and seventh largest producer of aluminum.
India's mineral resources are vast. However, its mining industry has
declined - contributing 2.3% of its GDP in 2010 compared to 3% in 2000,
and employed 2.9 million people - a decreasing percentage of its total
labor. India is a net importer of many minerals including coal. India's
mining sector decline is because of complex permit, regulatory and
administrative procedures that take 6 to 20 fold more time than other
mining countries such as Australia and South Africa, inadequate
infrastructure, shortage of capital resources, and slow adoption of
ecologically and environmentally sustainable technologies.

9. Mining industry in Gujarat

Industries and Mines department plays a key and important role in
effective and economic industrial development and focuses on the
possibilities to develop fast growth in small medium and Large-scale
industries.
110

Gujarat is the sole producer of agate, chalk and perlite in the country, and
the second largest producer of lignite and petroleum during 2010-11.

Gujarat is known for its enterprising spirit and is rightly called the growth
engine of India. The Government of Gujarat has undertaken speedy and
investor-friendly reforms and continues to intensify steps to accelerate
growth. Constituting 5% of the total population, the state already
accounts for 17% of the industrial output, 25% of exports and about 10%
of the total workforce. The state has also emerged as a leading producer
of fluorite (concentrate), fireclay, silica sand, laterite, natural gas and
bauxite. The total value of mineral production in Gujarat has been
recorded at INR 12731.07 crore in 2010-11. Gujarat has also emerged as
an important stone producing centre, with a dedicated resource of
entrepreneurs, technology and requisite skill sets. The industry has
witnessed significant growth in urban and rural infrastructure space.
The State Government's focus is to identify more mineral reserves and
create business-friendly policies which will serve customers on a long term
basis. Through Industries & Mines Department, the State Government is
addressing environmental issues, while also implementing e-governance
for transparency in this sector. The Government of Gujarat realizes the
importance of sustainability in the mining sector and envisions a paradigm
shift to Sustainable mining for spectacular growth of mineral processing
industry.

Controlling Authority
There are 7 Major Heads of the Department and 25 District Industrial
Commissionerate

(DIC)

and

Various

Boards

and

Corporations

and

Institutions to help in achieving the desired Results and Goals of the

Industries and Mines Department

111

DIC in each district works as a common point for developing the industries
and in implementing various policies and schemes in their respective
district.

Minerals found in Gujarat

State
Minerals Found

Brief Summary and

in Respective

Important Links

Districts
GUJARAT
Amreli

Bauxite,

Gujarat is the second largest

Bentionite, China

producer of lignite and crude

clay,

petroleum. It attains 6th

Limestone, Calcite position (2010-11) in terms of

Banaskantha

its contribution to production.

China Clay,

In 2010-11, the value of

Copper ore,
Granite, Lead-

mineral production remained

at Rs. 12731.07 crores

Zinc, Marble

whereas the value for minor

Bharuch

Agate , Fireclay,
Fluorite, Lignite,
Quartz/Silica sand,
Calcite

Bhavnagar

Bauxite,
Bentionite, China
Clay, Dolomite,
Fuller's earth,
Gypsum, Lignite,
Ochre, ,

112

minerals remained at Rs.

725.67 crores.

Quartz/Silica sand
Dahod

Quartz/Silica sand

Jamnagar

Bauxite,
Bentionite, China
Clay, Gypsum

Junagarh

Bauxite, China
Clay, Gypsum,
Limestone

Kachchh

Bauxite, Ball Clay,

Bentionite, China
Clay, Fuller's earth,
Gypsum, Lignite,
Limestone, Ochre,
Quartz/Silica sand

Kheda

Bauxite, Fireclay,
Limestone,
Quartz/Silica sand

Mehsana

China Clay,
Fireclay, Granite

Panchmahals

Limestone,
Quartz/Silica sand,
Rock phosphate,
Graphite,
Manganese ore

Patan

Ochre

Porbandar

Bauxite, Chalk,
Limestone

Rajkot

Fireclay,
Limestone, perlite,

113

Quartz/Silica sand
Sabarkantha

Bauxite,
Bentionite, China
Clay, Fireclay,
Limestone,
Quartz/Silica sand,
Granite

Surat

Fireclay, Lignite,
Limestone,
Quartz/Silica sand

Surendranagar

Fireclay, Gypsum,
Quartz/Silica sand

Vadodara

Dolomite, Fluorite,
Limestone,
Quartz/Silica sand,
Lead-Zinc, Marble,
Manganese Ore

Valsad

Bauxite

Valsad

Limestone,
Quartz/Silica sand

114

Main and largest player in Gujarat in the field of Mines and Mineral :
1. Gujarat Mineral Development Corporation
1963 - Gujarat Mineral Development Corporation Limited, a
government of Gujarat enterprise was incorporated with the
objective to develop major mineral resources in the Gujarat.
1968 - A project was set up by GMDC, in the year 1968 that was beneficiation
of fluorspar, a rare mineral essential for basic industries, like refining of steel
manufacturing of aluminium,
hydrochloric acid, foundry flux and welding electrodes among others.

115

1970 - GMDC started commencing mining of lignite in Kutch district of

Gujarat. By the early 70's the industrialization of Gujarat was on a rapid pace,
which enforced heavy quantities of fuel to sustain the growth.
1984 - GMDC started mining operation at Rajpadri near Ankleshwar in 1984,
and has been supplying lignite to majority of the textile industries from this
mine.
2002 - GMDC Flares up gradation in the ranking amongst top PSU companies
of India according to a survey conducted by ET500. For the year 2001-02 on
the basis of OPM criteria GMDC ranked 7th out of 100 companies and on the
net profit basis it is ranked 111th out of 250 companies. Further for market
capital it was ranked 186th out of 500 companies.
2003 - The financial closure for Akrimota Power Project has been achieved in
March 2003. Against the requirement of Rs.1116 crores, financial institutions
and Banks have pledged assistance for Rs.1400 crores.
- GMDC had ranked 112th in terms of excellence in business performance in
the list of top manufacturing companies in India accumulated by Industry 2.0
and Investment Research and Information Services Ltd (IRIS).
2004
- GMDC had received a composite score of 6 out of a possible 15 in Industry
2.0's SCM Metrics study. The study examined trends in the Supply Chain
Management (SCM) metrics of India's top 1,000 manufacturing companies.
- According to the resolution came on Sept 23, among the 12 PSUs identified
for the restructuring process in the Gujarat state GMDC is also included.
2005
- First unit of the Akrimota Power Project has been synchronized on 31st
116

March 2005.
-Gujarat Mineral Development Corporation (GMDC) and Oil and Natural gas
Corporation (ONGC) have joined hands to develop underground coal
gasification (UGC) for power generation in Gujarat.
2006
- GMDC expanded its operations beyond the state from the year 2006.
Ministry of Coal, Government of India had allotted to GMDC coal blocks with
approximately 350 million tonnes of mineable reserves in Morga-II block of
Korba district in the State of Chhatisgarh and another one in Jainnagar,
Hazaribaug district in the State of Jharkhand with 100 million tonnes of
mineable reserves.
-GMDC sets up Tadkeshwer lignite mines
2007
- The company had executed a MoU with Reliance Industries to set up a
joint venture (51% RIL - 49% GMDC) to undertake lignite/coal gasification
projects. Further the board of directors of the company at its meeting held on
April 30, 2007, resolved to split the shares of the company in the ratio of 1:5
after necessary approvals.2.
- The Company has splits its face value from Rs10/- to Rs2/-.
2008
- GMCD had informed the market on January 31st 2008 that the company
board has decided to recommend a bonus issue of shares in the ratio of 1:1.
2009
-Commencement of Wind Power of 19.5MW in 2009

117

-The Corporation also went into harnessing the wind energy and
commssioned 19.5 MW wind turbines near Malya in Kutch in the later part of
2009 which will be expanded further to the tune of 100 MW in various stages
of implementation.
2010
-The Corporation first implemented ISO-9001 at Corporate office in 2010 and
is planning to obtain for all the mines in operation with Occupational Health
and Safety systems(OHS-18000) along with Environmental Management
systems(ISO-14000) which are intended for achieving excellence in all areas
where its people and stake holders are connected.
-The Corporation also embarked on a sophisticated Enterprise Resource
Planning system in 2010 covering the whole ambit of mining operations
throughout Gujarat to achieve efficiency and complete the tasks in time with
the minimum resources required
2011
-GMDC has declared highest ever dividend of 150% for the F.Y.
2010-11
-GMDC Bhavan has been announced as the Best Government Building
-Ahmedabad in best building category for theBIHED AWARDS 2011.
2012
-State-owned mining company Gujarat Mineral Development Corporation
(GMDC) is looking for approximately 1,500 acres of land in Mandvi taluka at
Kutch district to set up its alumina and smelter plant project in joint venture
(JV) with National Aluminium Company (Nalco), said the media reports.
-Leading mining company Gujarat Mineral Development Corp (GMDC) has
posted nearly three-fold jump in its net profit for the second quarter ended
118

September 30, 2012 at Rs 168.81 crore.

Gujarat Mineral Development Corporation Limited (GMDC) is a

major minerals and lignite mining company of India. It is State owned
company owned by Government of Gujarat. GMDC was founded in 1963.
Its corporate headquarters is at Ahmedabad.
Its product range includes essential energy minerals like lignite, base
metals

and

industrial

minerals

like

bauxite

and

flourspar.

Gujrat

government as given its green signal to GMDC to form a joint venture

with NALCO for a 1 mtpa refinery.
GMDC also owns and runs Akrimota Thermal Power Station a 250 MW
(2x125

MW)

lignite

based

thermal

power

village Nanichher in Lakhpat Taluka, Kutch District.

119

plant

located

in

9. List of Tables
1) GDP:-

9
8
7
6
5
4
3
2
1
0
INDIA

DRC

120

2) Population Density:-

121

400
350
300
250
200
150
100
50
0
INDIA

DRC

122

3) Population:-

1400000000
1200000000
1000000000
800000000
600000000
400000000
200000000
0
INDIA

DRC

123

4) Literacy Rate:-

80
70
60
50
40
30
20
10
0
INDIA

DRC

124

5) Mining industries Contribution on National GDP:-

20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
INDIA

DRC

125

CONCLUSION
The STEEPLED analysis here shows what is a factor in India who
relates to the Business. This study is more and more beneficial
for any business organization. In the report given detail of our
India political, social economical, legal, environmental and
technological. This all the issue of India market stability,
government politic. Political stability in India. And many other
things show this. We say that STEEPLED analysis role is in today
scenario in business very important. We see here India
STEEPLED analysis. In India many opportunity to open a
business. Some problems in India But we Know every where
every things is not available.

126

References

1. Salem sheikh Text Book

2. www.economicstimes.com
3. http://economictimes.indiatimes.com/
4 http://proquest.umi.com/
5. http://rapidbi.com/STEEPLED/Introduction-to-the-STEEPLED-analysistool.html#political
6. http://www.english-test.net/gre/vocabulary/meanings/349/grewords.php
7. http://en.wikipedia.org/wiki/Abstract_%28summary%29
8. http://en.wikipedia.org/w/index.php?title=Special
%3ASearch&search=STEEPLED&go=Go
9. http://www.english-test.net/gre/vocabulary/meanings/349/grewords.php
10. http://www.teesmaarkhan.com/2008/07/pest-analysis-india.html
11.http://www.financialexpress.com/gsearch.php?cx=partner-pub9517772455344405:6tybby-db0c&cof=FORID%3A10&ie=ISO-8859127

1&q=Poltical%20Impact%20in%20buisness
%20enviornment&sa=Search#1268
12.http://books.google.co.in/books?
spell=1&q=salim+sheikh+buisness+enviornment&btnG=Search+Books

128

129