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 13.55 per cent between 2011-12 and 2016-17 to reach Rs 11.62 trillion (US$ 173.24 billion) during 2016-17. Gujarat has achieved the distinction of being one of the most industrially developed states and contributes about a quarter to India’s goods exports.

Gross State Domestic Product (GSDP) of Gujarat increased at a CAGR of 13.55 per cent between 2011-12 and 2016-17 to reach Rs 11.62 trillion (US$ 173.24 billion) during 2016-17.

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

During 2016-17, the state produced 4.61 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. 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 July 2018, Gujarat had 19 operational Special Economic Zones. Overall exports from Gujarat increased 22 per cent in 2017-18 to US$ 66 billion.

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

• The Gujarat Garment & Apparel policy was announced in October 2017 with the aim of creating 100,000 jobs in the state.
• 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.
• As of September 2018, 48 Agricultural Produce Market Committees (APMCs) are linked with the National Agriculture Market (eNAM).
• As per Budget 2018-19, the state government has made a provision of US$ 221 million for the port and transport department.
• 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.

MMTPA – Million Metric Tonnes Per Annu

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