Industrial Development & Economic Growth in Gujarat

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.

Gross State Domestic Product (GSDP) of Gujarat increased at a CAGR of 13.24 per cent, during 2011-12 to 2020-21 to reach Rs 18.85 trillion (US$ 269.70 billion).

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

In 2018-19, exports 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.

As of November 2018, the state produced 3.77 million tonnes of petroleum (crude). 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. During 2017-18, total exports of Petroleum Product from Gujarat stood at US$ 25,184.83 million which was 37.69 per cent of the total exports. As of July 2018, Gujarat had four refineries with a combined capacity of 101.9 MMTPA.

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 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.

As of November 2019, 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. Overall exports from Gujarat increased 22 per cent in 2017-18 to US$ 66 billion.

According to the DPIIT, FDI inflows to Gujarat totalled US$ 24 billion from April 2000 to September 2019. During 2019, 433 investment intentions worth Rs 343,834 crore (US$ 49.24 billion) were filed in Gujarat.

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

• The government is developing a High-Speed Rail passenger corridor from Ahmedabad to Mumbai with the cooperation of the Government of Japan. 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.
• Gujarat has well developed infrastructure has 42 ports, including one major port at Kandla and 41 minor ports, along a 1,600 km coastline. During 2019-20 (April to November) Deendayal (Kandla) port handled 82.20 million tonnes of cargo traffic.
• In 2019, around 28,360 Memorandums of Understanding were signed during the Vibrant Gujarat Global Summit 2019 and it is expected to generate over 21 lakh jobs.
• 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.
• In the State Budget 2019-20, US$ 2.57 billion was allocated to the Energy, Industry & Minerals.
• As per the State Budget 2019-20, an allocation of US$ 824.63 million has been made to the Agriculture, Cooperation and allied activities sector.
• 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 Memorandum of Understanding (MoU) to develop a world class National Maritime Heritage Complex at Lothal, Gujarat with the cooperation from the Republic of Portugal.

MMTPA – Million Metric Tonnes Per Annum

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