Introduction
Gujarat is located on the western coast of India and has the longest coastline of 1,600 kms among all the states in the country. The state shares its borders with Rajasthan, Madhya Pradesh, Maharashtra, and the Union Territories of Daman and Diu and Dadra and Nagar Haveli. The Arabian Sea borders the state on the west and the southwest. Gujarat is one of the leading industrialized states in India. Gujarat is considered the petroleum capital of India due to presence of large refining capacity set up by private and public sector companies. In 2022-23, Gujarat contributed 8.6% to India’s GDP.
The state is the world’s largest producer of processed diamonds, accounting for 72% of the world’s processed diamond share and 80% of India’s diamond exports. With a contribution of 65 to 70% to India’s denim production, Gujarat is the largest manufacturer of denim in the country and the third largest in the world. There are 42 ports, 17 domestic airports and 3 international airports. There are 106 product clusters and 60 notified special economic zones (SEZs). Large scale investment is expected in Gujarat as part of the US$ 90 billion Delhi-Mumbai Industrial Corridor (DMIC).
Ahmedabad is India's first UNESCO World Heritage City of Gujarat which has been included in the list of the "World's 50 Greatest Places of 2022" by Time Magazine.
The first IFSC (International Financial Services Centre) in India has been set up at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
In 2022-23, the secondary sector contributed 42.90% to the state’s GSDP (at current prices), followed by tertiary (37.3%) and primary (20.09%) sectors.
Gujarat Tourism
Gujarat had the highest numbers of foreign tourist visits, with 1.78 million in 2022. The Government of Gujarat has announced its first-ever Cinematic Tourism Policy (2022-2027). This policy aims to create viable opportunities for film production in Gujarat and provide employment for residents. Since its inauguration on October 31 last year, the Statue of Unity in Kevadiya, Gujarat's Narmada district, has attracted over 2.9 million tourists, generating Rs. 82.51 crore (US$ 9.9 million) in revenue.
Gujarat Economy
The Gross State Domestic Product (GSDP) of Gujarat for 2023-24 (at current prices) is Rs. 25.63 trillion (US$ 309.54 billion), a growth of 13.36% over 2022-23. Gujarat per capita GSDP stood at Rs. 313,512 (US$ 3,989) in 2022-23. Per capita GSDP increased at a CAGR of 8.75% between 2015-16 and 2022-23. Gujarat’s NSDP was Rs. 19.46 trillion (US$ 247.63 billion) in 2022-23. The state’s NSDP expanded at a CAGR of 10.21% between 2015-16 and 2022-23. Gujarat’s per capita NSDP was Rs. 273,558 (US$ 3,480) in 2022-23. The state’s per capita NSDP increased at a CAGR of 8.81% between 2015-16 and 2022-23. According to the DPIIT, FDI inflows in Gujarat stood at US$ 1,020 million from April to June 2024.
Industries in Gujarat
With only 6 % of India's land mass and barely 5 % of its population, Gujarat has achieved the distinction of being one of the most industrially developed States and emerged stronger in terms of economic and industrial development. Gujarat accounts for the largest share of the total investments in the food processing sector of India. As per the Government of Gujarat’s survey report, technical textiles are a key emerging area, with over 860 units in Gujarat. The state accounts for around 72% of the world’s share of processed diamonds and more than 80% of diamonds processed in India. Gujarat consists of 47% of total domestic gas connections in the country.
Recent development in Key sectors
- In September 2024, Hindalco’s copper division is set to invest US$ 293.8 million (Rs. 2,450 crore) in 2 copper projects in Gujarat, including an e-waste recycling facility at Dahej in South Gujarat, which will have an annual production capacity of 200 kilotonnes of copper.
- In March 2024, Prime Minister Mr. Narendra Modi virtually inaugurated three semiconductor projects worth US$ 15.1 billion (Rs. 1.25 trillion). These include a US$ 10.99 billion (Rs. 91,000 crore) facility in Dholera, Gujarat, set to start chip production by 2026, as well as facilities in Morigaon, Assam, and Sanand, Gujarat.
- In January 2024, Car market leader Maruti Suzuki India will invest US$ 4.59 billion (Rs. 38,200 crore) in Gujarat to double its output in India to 4 million units by FY31.
- In January 2024, Reliance Industries Ltd will launch a new energy giga complex in Jamnagar, Gujarat, in the second half of 2024, according to an earnings statement and investor call. The complex spans 5,000 acres.
- In January 2024, Gujarat to host India's largest mall. The Lulu Mall project, valued at US$ 361.9 million (Rs. 3,000 crore), will start construction this year.
- In November 2023, the Gem & Jewelry Export Council (GJEPC) the apex body to promote exports of gems and jewelry 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 Center (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.
- As of October 2023, Gujarat had a total installed power generation capacity of 48,507.65 MW, comprising 33,084.08 MW under private utilities, 8454.86 MW (state utilities), and 6,968.71 MW (central utilities).
- 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.
- Gujarat recorded US$ 149.40 billion worth of exports in 2022-23 as compared to US$ 126.80 billion in 2021-22. Gujarat recorded US$ 42.52 billion worth of exports in 2023-24 (till July 2023).
- 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.
- Petroleum product exports from Gujarat stood at US$ 19,547.50 million in 2023-24 (April-July).
- 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 Center in Gujarat's Gift City.
- In June 2023, 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.
- In November 2022, a wind turbine taller than the world's tallest Statue of Unity with blades spanning wider than the wingspan of a jumbo jet has been installed at Mundra in Gujarat by Adani New Industries Ltd.
- In October 2022, Ms. Droupadi Murmu, laid the foundation stone of four important Projects worth more than US$ 34.15 million of Deendayal Port Authority, Kandla at Gujarat.
- In October 2022, Prime Minister, Mr. Narendra Modi launched Mission Schools of Excellence at Trimandir, Adalaj, Gujarat. The Mission has been conceived with a total outlay of US$ 1.21 billion.
- In October 2022, PM lauds people of Gujarat for their enthusiasm for 100% completion of Jal Jeevan Mission in the state.
- In October 2022, PM Mr. Modi declares Modhera as India's first 24x7 solar powered village.
- In June 2022, Prime Minister Mr. Narendra Modi inaugurated and laid foundation stone of development projects worth Rs. 21,000 crore (US$ 2.63 billion) at Gujarat Gaurav Abhiyan at Vadodara.
- In July 2022, the government approved the construction of Taranga Hill-Ambaji-Abu Road new rail line to provide connectivity and improve mobility.
- As of July 2022, Gujarat had 25 SEZs with notified approvals.
- In July 2022, Deendayal Port Authority (DPA) announced plans to develop two Mega Cargo Handling Terminals on a Build-Operate-Transfer (BOT) basis under Public-Private Partnership (PPP) Mode at an estimated cost of Rs. 5,963 crore (US$ 747.64 million).
- As of March 2019, 79 Agricultural Produce Market Committees (APMCs) were linked with the National Agriculture Market (eNAM).
- As per Indian Ports Association data published in June 2020, the number of ports in the state stands at 46.
FACTFILE
Capital
GandhinagarGeographical Area (sq km)
196,063State Language
Gujarati, Hindi and EnglishLiteracy Rate
78.03 per centKey Industries:
Dairy
Agro and food processing
IT
Chemicals and petrochemicals
Textiles and apparels
Engineering and auto
Gems and jewellery
Oil and gas
Pharmaceuticals and biotechnology
Minerals
Ports
Power
Toursim
Related News
MOREPartners
