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Industrial Development & Economic Growth in Gujarat

August, 2015

Gujarat contributes around 17.25 per cent to the country's industrial output. 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.

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

  • The National Dairy Development Board in Anand is involved in promoting, financing and supporting milk-distribution organisations across India.
  • Plan outlay of US$ 589 million for agriculture, animal husbandry, dairy and fisheries industries.
  • Allocation of US$ 121 million for farmers against the impact of poor monsoon.
  • Allocation of US$ 615 million with an aim to bring an additional 0.3 million hectares under irrigation by Narmada waters over 2013-14.
  • The state government has announced plans for the setting up of brown and green field projects to facilitate environment-friendly processing standards in the textile units of the state.
  • The state government is working on attracting investments from Japanese companies to develop direct railway connectivity from the backyards of automotive manufacturing plants to ports like Mundra and Pipavav.

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