GSDP of Gujarat, Economic Growth Presentation and Reports | IBEF

Gujarat is located on the western coast of India and has the longest coastline of 1,600 kms in the country. Gujarat is one of the highest growth states in the country.

Gujarat is one of the leading industrialised states in India. The Gross State Domestic Product (GSDP) of Gujarat for FY26 (at current prices) is Rs. 29.82 trillion (US$ 349.14 billion). Gujarat’s GSDP increased at a CAGR of 10.16% between FY16 and FY26BE.

According to the DPIIT, FDI inflows in Gujarat stood at Rs. 4,08,212 crore (US$ 46.11 billion) from October 2019-June 2025.

There are 13 major industry groups that together account for around 82.05% of total factories, 95.85% of total fixed capital investment, 90.09% of the value of output and 93.21% of value addition in Gujarat's industrial economy. Gujarat ranked 1st in Export Preparedness Index 2021. Gujarat recorded Rs. 9,05,346 crore (US$ 106.27 billion) worth of exports in FY25 (Until February). Petroleum products contribute majorly to 38% of total exports from the state.

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 of over 800 large industries and 453,339 micro, small and medium enterprises.

Gujarat has over 3,300 pharmaceutical manufacturing units, which contributed 30-35% to India’s pharma sector’s turnover and around 28% to India’s pharma export during 2018-19. Gujarat has over 3,300 pharmaceutical manufacturing units, which contributed 30-35% to India’s pharma sector’s turnover and around 28% to India’s pharma export during 2018-19.

As of August 2025, Gujarat had a total installed power generation capacity of 63,429 MW, comprising 46,535.50 MW under private utilities, 8,573.16 MW (state utilities), and 8,320.42 MW (central utilities).

As of 2025, Gujarat has 21 operational SEZs spanning multiple sectors, including textiles, pharmaceuticals, engineering, chemicals, electronics/IT, and port-based multi-product zones.

In 2024-25, the secondary sector contributed 47.42% to the state’s GSDP (at current prices), followed by tertiary (36.03%) and primary (16.55%) sectors.

Following is some of the major initiatives taken by the Government to promote Gujarat as an investment destination:

• On September 30, 2025, the Government of Gujarat announced that its upcoming industrial policy will extend comprehensive incentives to the services sector currently contributing 35.8% of the State’s GSDP with proposed benefits including a capital subsidy of 35% of eligible fixed costs for enterprises hiring at least ten employees, as well as interest, lease-rental, internet, server-cost and EPF-reimbursement subsidies.
• On September 11, 2025, the Government of Gujarat unveiled plans to boost aviation infrastructure by developing two greenfield airports at Dahod and Dwarka. The Dahod airport will serve passenger and industrial demand in eastern Gujarat, while the Dwarka airport, located near a major pilgrimage site, will enhance tourism and strategic connectivity.
• Gujarat’s textile sector has received a major boost through recent GST 2.0 reforms, with the rate on zari borders and traditional handicrafts such as Kutchi embroidery, Bandhani tie-dye, and Sankheda lacquerware reduced from 12% to 5% to enhance affordability and market competitiveness. Surat, which contributes around 40% of India’s man-made fabric production and nearly 18% of textile exports, stands to benefit significantly from the move, supporting employment and export growth across the State’s textile hubs.
• On August 25, 2025, Prime Minister Mr. Narendra Modi inaugurated multiple railway projects in Gujarat worth over Rs. 1,400 crore (US$ 158.5 million), including the doubling of the 65 km Mehsana-Palanpur rail line and gauge conversion of the 37 km Kalol-Kadi-Katosan Road rail line and 40 km Bechraji-Ranuj rail line aimed at enhancing connectivity, improving freight and passenger capacity, and boosting regional economic integration.
• On February 21, 2025, the Gujarat government announced the roll-out of new tourism circuits, supported by a 31% increase in tourism sector funding to Rs. 6,505 crore (US$ 736 million), which includes construction of 150 new roads, deployment of 200 air-conditioned buses and 10 caravans with a budget of Rs. 360 crore (US$ 40.8 million) to connect 25 tourist and pilgrimage destinations, and an initial Rs. 15 crore (US$ 1.7 million) earmarked for basic facilities and new circuit development.
• In FY25, the State of Gujarat contributed a dominant 46.16% of India’s total chemical exports amounting to Rs. 1,13,011 crore (US$ 12.8 billion) of the country’s Rs. 2,52,509 crore (US$ 28.6 billion) reinforcing its position as the nation’s chemical and Petro-chemical hub.

State Budget FY26 developments:

• Allocated 6.4% of its expenditure on roads and bridges in FY26. This is higher than the average allocation for roads and bridges by states in FY25 (4.3%)
• Allocated Rs. 10,613 crore (US$ 1.24 billion) towards power subsidies for agriculture.
• Rs. 12,846 crore (US$ 1.50 billion) has been allocated towards the Swarnim Jayanti Mukhya Mantri Shaheri Vikas Yojana.
• Provision of Rs. 2,914 crore (US$ 341.2 million) has been made towards the Mission Schools of Excellence Scheme.
• Rs. 3,491 crore (US$ 408.7 million) has been allocated towards Arogya Suraksha yojana.
• Rs. 1,200 crore (approximately US$ 140.5 million) has been designated for FY26 to offer aid through interest subvention for farmers.
• As of February 2025, Gujarat had a total installed power generation capacity of 57,886.85 MW, comprising 42,210.36 MW under private utilities, 8,469.86 MW (state utilities), and 7,206.63 MW (central utilities).
• According to the Telecom Regulatory Authority of India (TRAI), Gujarat had 64.96 million wireless connections and 1.94 million wireline subscribers as of December 2024.
• Exports of organic chemicals and inorganic from Gujarat reached Rs. 100 crore (US$ 11,740.83 million) in FY25 (until February 2025).
• In November 2023, the Gem & Jewellery Export Council (GJEPC) the apex body to promote exports of gems and jewellery in India, partnered with the American multinational, FedEx Corporation.
• In November 2023, the Chief Minister inaugurated the state-wide ‘Ravi Krishi Mahotsav 2023, which aims to offer guidance to the state’s farmers on modern agricultural technology concerning seasonal crops and provide insights into various farmer-oriented support schemes.
• In November 2023, Chief Minister Mr. Bhupendra Patel approved the Full Dealer Owned Dealer Operated-(FDODO) CNG scheme which would be implemented by Gujarat Gas Limited and Sabarmati Gas Limited.
• In October 2023, IT SEZ with an investment of Rs. 8,000 crore (US$ 960.37 million) might come up in the city.
• In October 2023, a MoU was signed between the Indian National Space Promotion and Authorization Centre (IN-SPACe) and the Government of Gujarat, for the development of a space manufacturing cluster in the city near Ahmedabad.
• In October 2023, the Gujarat government set up a development authority for the Becharaji region. The Mehsana district collector has been appointed chairperson of the authority.
• In October 2023, the Petronet LNG board approved the setting up of a petrochemical plant in Dahej, Gujarat with an estimated cost of Rs. 20,685 crore (US$ 2.48 billion).
• In September 2023, the Gujarat Maritime Board (GMB) revived plans to build ‘Port City,’ an ambitious project conceptualized on the lines of established global maritime hubs like Dubai and Singapore.
• In August 2023, 36 railway projects worth Rs. 30,789 crore (US$ 3.69 billion) were underway in Gujarat.
• During the fiscal year 2023-24 (April-September), aircraft movement was 50,394, passenger traffic was 6.85 million, and cargo traffic was 52,847 million tonnes.
• In July 2023, 15 companies signed MoUs worth Rs. 2,000 crore (US$ 240.09 million), for investments in the biotech sector.
• In July 2023, an MoU has been signed between the State and Central government at Surat for the construction of PM MITRA Park on 1,141 acres at Vansi Borsi in Navsari, Gujarat.
• According to the Telecom Regulatory Authority of India (TRAI), Gujarat had 65.27 million wireless connections and 1.21 million wireline subscribers as of March 2023. As of March 2023, the state had 52.54 million internet subscribers.
• In June 2023, Google to set up Global FinTech Operations Centre in Gujarat's Gift City.
• In June 2023, Union Minister of Road Transport & Highways, Mr. Nitin Gadkari dedicates two National Highway projects worth US$ 5.85 million in Vadodara, Gujarat.
• In June 2023, Union Home Minister and Minister of Cooperation, Mr. Amit Shah inaugurated the National Convention of Modi Samaj in Ahmedabad, Gujarat.
• In May 2023, Union Home Minister and Minister of Cooperation Mr. Amit Shah laid the foundation stone of the permanent campus of National Academy of Coastal Policing (NACP) at Dwarka, Gujarat, to be built at a cost of US$ 57.32 million.
• In April 2023, Mr. Sarbananda Sonowal approved the establishment of an oil jetty at Kandla's Deendayal Port for US$ 15.05 million.
• In April 2023, Gujarat Fluorochemicals announced to invest US$ 609.86 million in EV batteries, solar and green hydrogen supply chain.
• In March 2023, Anupam Rasayan to set up three new plants in Gujarat with US$ 81.72 million investment.
• In February 2023, the Gujarat government signed 18 memorandum of understanding (MoU) worth US$ 1.20 billion under the state government's 'Aatmanirbhar Gujarat Schemes for Assistance to Industries'. It is expected to generate 10,851 employment opportunities.
• In February 2023, Mr. Parshottam Rupala launched Sagar Parikrama Phase-III from Gujarat's Hazira Port.
• In February 2023, 16 Bharat Gaurav circuits were constructed, and this Garvi Gujarat Yatra is the 17th circuit on the lines of the Government of India's "Ek Bharat Shrestha Bharat" initiative to highlight the legacy of vibrant Gujarat.
• The World Bank has loaned (Rs. 4,200 crore) for the ‘SRESTHA Gujarat’, a multi-dimensional health-oriented plan that would be implemented in the upcoming 5 years.

Gujarat continues to reinforce its position as one of India’s most competitive and forward looking growth engines, supported by strong industrial capabilities, steady infrastructure expansion and a policy environment that consistently attracts large scale domestic and global investment. The state’s dominance across chemicals, petrochemicals, pharmaceuticals, textiles, engineering and emerging technology sectors reflects a diversified and resilient economic base. Ongoing reforms to strengthen connectivity, digital infrastructure, tourism, services and social development further underline the government’s commitment to balanced and inclusive growth. With sustained progress in industrial corridors, renewable energy, port led development and innovation driven clusters, Gujarat is well placed to deepen its economic leadership and play an even stronger role in driving India’s long term growth trajectory.