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Industrial Development & Economic Growth in Gujarat

Last updated on Jun, 26 2020

Economic Snapshot
Per capita Income

 


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 high growth states in the country.

Gujarat is one of the leading industrialised states in India. At current prices, Gujarat's Gross State Domestic Product (GSDP) is estimated at Rs 18.85 trillion (US$ 269.70 billion) during 2020-21. The state’s GSDP is expected to grow at a CAGR of 12.87 per cent during 2015-16 and 2020-21.

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. Total export from the state stood at US$ 67,401 million during 2018-19 and US$ 49,617 million during April-December 2019.

In 2018-19, export of major agriculture commodities from Gujarat stood at US$ 5.36 billion and reached US$ 3.52 billion during April-December 2019.

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 per cent to India’s pharma sector’s turnover and around 28 per cent to India’s pharma export during 2018-19. Export of drug formulations from Gujarat stood at US$ 1,912.78 million in 2018-19 and reached US$ 2,310.75 million in 2019-20 (till February 2020).

During 2018-19, the state produced 4,218 million tonnes of petroleum (crude) and 1,234 million cubic metres of natural gas (utilised). Total consumption of petroleum products stood at 22.53 million metric tonnes (MMT) during 2019-20P. Export of petroleum products from Gujarat reached US$ 11,209.61 million in FY20 (till February 2020).

Gujarat has achieved the distinction of being one of the most industrially developed states. It accounts for five per cent of the total Indian population and contributes about a quarter of India’s goods export. The state ranks first in terms of total area covered under special economic zone (SEZs) in India. It is also a leading SEZ state with the highest geographical area of 29,423.9 hectares under SEZ development.

As of February 2020, Gujarat had 20 operational SEZs. In addition to operational SEZs, Gujarat had four SEZs with valid in-principle approvals, 28 SEZs with formal approvals and 24 SEZs with notified approvals.

According to Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investments (FDI) inflow in Gujarat reached US$ 26.6 billion between April 2000 and March 2020. Gujarat accounted for about five per cent share in the overall FDI inflows in India.

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

  • in 2019, around 28,360 memorandums of understanding (MoU) were signed during the Vibrant Gujarat Global Summit 2019, which is expected to generate over 21 lakh jobs.
  • Gujarat has a well-developed infrastructure with 42 ports, including one major port at Kandla and 41 minor ports along a 1,600 kms coastline. In 2019-20, Deendayal (Kandla) port handled 122.49 million tonnes of cargo traffic.
  • 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.
  • In February 2020, President of Portugal H.E. Mr Marcelo Rebelo de Sousa, Minister of National Defense of Portugal and Minister of State for Shipping(I/C) and Chemical and Fertilizer, Mr Mansukh Mandaviya, signed an MoU to develop a world class National Maritime Heritage Complex at Lothal, Gujarat with cooperation from the Republic of Portugal.
  • In June 2020, Tata Power Renewable Energy bagged an order from Gujarat Urja Vikas Nigam (GUVNL) to develop a 120 megawatt (MW) solar project in Gujarat.

 

 

MMTPA – Million Metric Tonnes Per Annum

Gujarat State Presentation

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Gujarat Map

Gujarat