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. 18,79,826 crore (US$ 259.25 billion) in FY22, an increase of 7% YoY.
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 with the highest exports worth US$ 131 billion (April 2022- January 2023).
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. Export of drug formulations from Gujarat reached US$ 3,053.53 million in 2019-20 and US$ 2,789.92 million in FY21.
In 2019-20, the state produced 4.6 million tonnes of petroleum (crude) and 1,287 million cubic metres of natural gas. Total consumption of petroleum products stood at 22.53 million metric tonnes (MMT) in 2019-20. Export of petroleum products from Gujarat reached US$ 7,180.92 million in FY21.
As of September 2020, Gujarat had 21 operational SEZs. In addition, as of December 2020, Gujarat had four SEZs with valid in-principle approvals, 26 SEZs with formal approvals and 22 SEZs with notified approvals.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), in FY21, Sugg: Gujarat received the highest FDI (Foreign Direct Investment) at US$ 21.89 billion and stood at the top of all states, with 30% of the total equity inflows.
Following are some of the major initiatives taken by the Government to promote Gujarat as an investment destination:
- In 2020, 220 investment intentions worth Rs 46,141 crore (US$ 6.36 billion) were filed in Gujarat.
- As per Indian Ports Association data published in June 2020, the number of ports in the state stands at 46. Between April to November 2020, Deendayal (Kandla) port handled 73.86 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.
- To meet the rising demand for containers, in May 2021, the government announced to establish pilot projects for containers. It aims to receive an estimated potential investment of Rs. 1000 crore (US$ 137.91 million) from private players.
- In May 2021, Borosil Renewables announced a plan to expand its manufacturing unit in Gujarat at an investment of Rs. 500 crore (US$ 68.96 million), with an aim to double its capacity to 900 tonnes per day or 5GW of installed capacity at its solar power plants.
- In May 2021, ReNew Power announced to establish a solar component manufacturing unit in Gujarat at an initial investment of Rs. 1,200 crore (US$ 165.49 million), which is likely to increase to Rs. 2,000 crore (US$ 275.82 million).
- In April 2021, Coal India Limited (CIL) signed a PPA (Power Purchase Agreement) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for the sale of 100 MW solar power to the company for 25 years.
- In May 2021, Mr. Nikhil Kamath, a co-founder of Zerodha, announced the launch of True Beacon Global, the first alternative investment fund (AIF) in Gujarat’s GIFT City.
- In April 2021, Singapore Stock Exchange (SGX) announced to establish its offshore office at GIFT City.
MMTPA - Million Metric Tonnes Per Annum
