Trade Analytics

Industrial Development & Economic Growth in Gujarat

Latest update: November, 2016

Economic Snapshot: GSDP of Gujarat

Gujarat's gross state domestic product (GSDP) was at US$ 142.38 billion over 2014-15

Economic Snapshot: GSDP of Gujarat

Economic Snapshot: NSDP of Gujarat

Gujarat' net state domestic product (NSDP) was at US$ 120.91 billion over 2014-15

Break up of outstanding investments in Gujarat

 

November, 2016

Gujarat is located on the western coast of India and has the longest coastline of 1,600 km in the country. Gujarat is one of the high growth states in the country. Average annual Gross State Domestic Product (GSDP) growth rate of Gujarat from 2004-05 to 2015-16 was 12.02 per cent. Gujarat has achieved the distinction of being one of the most industrially developed states and contributes about a quarter to India’s goods exports.

There are 13 major industry groups that together account for around 82.05 per cent of total factories, 95.85 per cent of total fixed capital investment, 90.09 per cent of the value of output and 93.21 per cent of value addition in Gujarat's industrial economy.

Gujarat is a leader in industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewellery, textiles and engineering. The industrial sector comprises over 800 large industries and more than 453,339 micro, small and medium industries. As of December 2015, Gujarat ranked second in the production of crude oil (onshore) in India. It accounts for around 72 per cent of the world’s share of processed diamonds and more than 80 per cent of diamonds processed in India.

Gujarat has achieved the distinction of being one of the most industrially developed states. Accounting for five per cent of the total Indian population, contributing about a quarter to India’s goods exports. The state ranks first in terms of total area covered under SEZs in India. It is also a leading SEZ state with the highest geographical area of 29,423.9 hectares under SEZ development

The following are some of the major initiatives taken by the government to promote Gujarat as an investment destination:

  • The Vibrant Saurashtra Expo and Summit, was held in Rajkot in January 2016. MoUs worth US$ 341.88 million were realised for the development of various sectors of the state during the event.
  • The government is developing a High Speed Rail passenger corridor from Ahmedabad to Mumbai with the cooperation of the Government of Japan. Additionally, the modernisation of 20 railway stations based on PPP in Gujarat is expected to be undertaken during 2016-17.
  • The state has announced an Incentive program for the Industries (General) from 2016-2021 in accordance with the New Industrial Policy of 2015. The scheme aims to attract increased investments in the manufacturing sector to create more employment opportunities.
  • The central government plans to set up a medical device park in the state of Gujarat. The Government also plans to start building the park, before the start of the Vibrant Gujarat Global Summit 2017, for which a high level committee has also been constituted.
  • Gujarat’s Industrial Policy, 2015, offers attractive incentives and concessions for prospective investors.
  • Gujarat has well developed infrastructure. With one major port and 44 non-major ports, Gujarat has the highest number of operational and commercial cargo ports in India.
  • Many upcoming ports are being developed as captive ports to cater to specific company and industry requirements. The state undertakes fast-track clearance in establishment of ports through private participation.
  • The state government has approved interest subvention at the rate of 6 per cent for three years for building godowns on the farms to boost storage capacity in the state. It has also allocated US$ 1.49 billion for Narmada Yojana.
  • The Government of Gujarat has initiated several steps for the development of a world-class port city at Mundra. The port has a cargo handling capacity of over 200 million tonnes per annum.
Gujarat State Presentation

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Gujarat Map

Gujarat