Economy of Gujarat

The economy of Gujarat, a state in Western India, has significant agricultural as well as industrial production within India. Major agricultural produce of the state includes cotton, groundnuts (peanuts), dates, sugar cane, milk and milk products. Gujarat is one of the most industrialised states, with significant presence in pharma, chemicals, refining and petrochemicals, ceramics, textiles, automobile etc. sectors. Gujarat recorded the lowest unemployment rate in India in 2015, with 1.2% of the labour force being unemployed.

Economy of Gujarat

Surat
Currency	Indian Rupee ₹
Fiscal year	1 April – 31 March
Statistics
GDP	₹19.44 lakh crore (US$270 billion) (2021–22) ₹22.03 lakh crore (US$310 billion) (2022–23 est.)
GDP rank	3rd
GDP growth	17.4% (2021–22) 13.3% (2022–23 est.)
GDP per capita	₹241,507 (US$3,400) (2020–21)
GDP per capita rank	11th
GDP by sector	Agriculture: 20% Industry: 43% Services: 37% (2020–21)
Population below poverty line	Template:Decreasepositive 15% in poverty (2019–20)
Human Development Index	0.672 medium (2019) (21st)
Unemployment	3.9% (Nov 2020)
Main industries	Gems and jewellery pharmaceutical textile chemical ceramics automobile refining and petrochemicals
Ease-of-doing-business rank	2nd (very easy, 2021)
External
Exports	US$126.8 billion (2021-2022)
Export goods	Refined petroleum products pearls, precious and semi-precious stones iron and steel biomedical products chemicals financial services
FDI stock	₹20,169 crore (US$2.8 billion) (2020-21)
Public finances
Public debt	15.88% of GSDP (2022–23 est.)
Budget balance	₹−36,113 crore (US$−5.1 billion) 1.64% of GSDP (2022–23 est.)
Revenues	₹1.82 lakh crore (US$26 billion)(2022–23 est.)
Expenses	₹2.18 lakh crore (US$31 billion)(2022–23 est.)

Gujarat is ranked number one in the pharmaceutical industry in India, with a 33% share in drug manufacturing and 28% share in drug exports. The state has 130 USFDA certified drug manufacturing facilities. Ahmedabad and Vadodara are considered as pharmaceutical hubs as there are many big and small pharma companies established in these cities.

Gujarat has the longest coastline in India (1,600 km [990 mi]), and its ports (both private and public sector) handle around 40% of India's ocean cargo, with Mundra Port located in Gulf of Kutch being the largest port of India by cargo handled (144 million tons) due to its favorable location on the westernmost part of India and closeness to global shipping lanes. Gujarat also contributes around 20% share in India's industrial production and merchandise exports.

Contribution

Gujarat continues to occupy a distinctive position in the Indian economy. With 5 percent of the country’s population and 6 percent of the country’s geographical area, Gujarat contributes to about 16 percent of industrial production in India. The State has witnessed an annual average growth of 9 percent in the last three years (GDP is estimated at USD 38.4 billion) and an average industrial growth of 15 percent for the same period. However, these macroeconomic statistics look much more impressive on a closer look at the industrial landscape of the State. Accounting for 16 percent of the industrial production of India, Gujarat has demonstrated leadership in many areas of manufacturing and infrastructure sectors. Almost 50 percent of the country’s refined petroleum products and 45 percent of the drugs and pharmaceuticals is from Gujarat. The State’s exports stand at 14 percent of India’s total exports, exhibiting a strong global orientation of the industrial structure.

Investment: Traditionally, Gujarat has been able to attract significantly highest levels of investments, including Foreign Direct Investments (FDI) in India. In 2006, over INR 229,928 crore worth of investments were made across 8,126 sectors. In the last five years, Gujarat has attracted highest investment among all states in India and is worth INR 1,82,998 crore. The fixed capital investment of the State stands at USD 18 billion, accounting for 18 percent of the fixed investment of India. This impressive investment focus has been a prime driver for Gujarat to generate and sustain accelerated economic growth.

Demographic: The people of Gujarat are globally recognized as highly entrepreneurial and industrious. The risk taking ability, along with the mature level of commercial knowledge, has made the State the fountainhead of a new enterprise. The labour force in Gujarat is reasonably skilled in areas such as diamonds, chemicals, petrochemicals and pharma sectors. The cost of labour is also competitive in Gujarat, which along with the impressive infrastructure adds to the overall productivity of the State. Gujarat is one of the most urbanized states in the country with nearly 40 percent of population residing in urban areas. This has had a positive influence on the growth of industry in the State.

Manufacturing: The share of manufacturing sector in the GDP of Gujarat is nearly 40 percent, compared to 42 percent coming of the services sector. This is substantially different from the trend witnessed at an all India level, where the industry constitutes not more than 30 percent and the services sector contributes nearly 56 percent of the GDP. Over a period of time, Gujarat has successfully diversified its industrial base. At present, Gujarat has a production share of over 34 percent in petroleum products and 27 percent in chemicals and pharma in India. In engineering industries it stands at 9.3 percent, food and processing at 8.7 percent, textiles & apparel at 6.9 percent. In the gems & jewellery sector, Gujarat accounts for 80 percent of the processed diamonds and 90 percent of diamond exports from India. These statistics clearly indicate that manufacturing plays a critical role in generating economic growth and development. Moreover, the diversity and concentration (in the form of clusters) of various manufacturing sectors has given this sector a unique vibrancy in the State’s economy and policy.

Infrastructure: The State offers great road connectivity and reliable power supply to its consumers. It has one of the highest per capita power consumption (1175 units, as compared to India’s average of 592 units) and competitive commercial real estate rates in comparison to other states in India. Moreover, the State has easy accessibility to the western, middle-east and African markets. The State has 41 ports and provides for the longest coastline in India. Gujarat was amongst the first states in India to set-up an industrial park and is a leading State in harnessing wind energy. More importantly, this infrastructure has strong public policy support and is critical to the infrastructure needs of the country as a whole.

The world's largest ship breaking yard is in Gujarat near Bhavnagar at Alang.

Reliance Petroleum, one of the group companies of Reliance Industries Limited founded by Dhirubhai Ambani operates the oil refinery at Jamnagar which is the world's largest grass roots refinery. The company has also planned another SEZ (special economic zone), in Jamnagar.

Legatum Institute's Global Prosperity Index 2012 recognised Gujarat as the highest-scoring among all States of India on matters of social capital.

Data

Year	GSDP (in Bil. US$nominal)	GSDP per capita (in US$ nominal)	growth rate	Inflation rate (in Percent)	Unemployment (in Percent)	Government debt (in % of GSDP)
2024	n/a
2023	₹22.03 trillion (US$310 billion)					15.88
2022	₹18.80 trillion (US$260 billion)				1.6
2021	₹16.59 trillion (US$230 billion)
2020	₹16.50 trillion (US$230 billion)	₹2.43 lakh (US$3,000)	10.65	4.7
2019	₹15.03 trillion (US$210 billion)	₹2.25 lakh (US$2,800)	13.42	-0.8
2018	₹13.29 trillion (US$190 billion)	₹1.99 lakh (US$2,500)	14.72	1.5
2017	₹11.67 trillion (US$160 billion)	₹1.79 lakh (US$2,200)	13.72	5.6
2016	₹10.29 trillion (US$140 billion)	₹1.60 lakh (US$2,000)	11.09	5.7
2015	₹8.08 trillion (US$110 billion)	₹1.45 lakh (US$1,800)	13.75	6.4
2014	₹7.24 trillion (US$100 billion)	₹1.29 lakh (US$1,600)	11.49
2013	₹6.16 trillion (US$86 billion)	₹1.17 lakh (US$1,500)	19.10
2012	₹455,295 crore (US$57 billion)	₹1.01 lakh (US$1,300)	17.69
2011	₹365,295 crore (US$46 billion)	₹30,000 lakh (US$38 million)
2010	₹330,671 crore (US$41 billion)
2009	₹228,460 crore (US$29 billion)
2008	₹213,092 crore (US$27 billion)
2007	₹189,436 crore (US$24 billion)
2006	₹6,547 crore (US$820 million)
2005	₹153,079 crore (US$19 billion)
2004	₹149,598 crore (US$19 billion)
2003	₹122,500 crore (US$15 billion)
2002	₹113,277 crore (US$14 billion)
2001	₹104,494 crore (US$13 billion)
2000	₹107,605 crore (US$13 billion)
1999	₹105,443 crore (US$13 billion)
1998	₹92,966 crore (US$12 billion)
1997	₹86,414 crore (US$11 billion)
1996	₹72,182 crore (US$9.0 billion)
1995	₹63,624 crore (US$8.0 billion)
1994	₹39,190 crore (US$4.9 billion)
1993	₹35,018 crore (US$4.4 billion)
1992	₹26,068 crore (US$3.7 billion)
1991	₹24,120 crore (US$3.4 billion)
1990	₹19,496 crore (US$2.7 billion)
1989	₹19,496 crore (US$2.7 billion)
1988	₹13,908 crore (US$1.9 billion)
1987	₹14,022 crore (US$2.0 billion)
1986	₹12,103 crore (US$1.7 billion)
1985	₹11,740 crore (US$1.6 billion)
1984	₹11,280 crore (US$1.6 billion)
1983	₹8,675 crore (US$1.2 billion)
1982	₹8,205 crore (US$1.2 billion)
1981	₹6,547 crore (US$920 million)
1980	₹2,795 crore (US$390 million)
1979	₹2,924 crore (US$410 million)
1978	₹2,745 crore (US$380 million)
1977	₹2,597 crore (US$360 million)
1976	₹2,439 crore (US$340 million)
1975	₹1,898 crore (US$270 million)
1974	₹1,898 crore (US$270 million)
1973	₹2,202 crore (US$310 million)
1972	₹2,256 crore (US$320 million)
1971	₹1,150 crore (US$160 million)
1970	₹997 crore (US$140 million)
1969	₹906 crore (US$130 million)
1968	₹974 crore (US$140 million)
1967	₹889 crore (US$120 million)
1966	₹868 crore (US$120 million)
1965	₹935 crore (US$130 million)
1964	₹859 crore (US$120 million)
1963	₹806 crore (US$110 million)
1962	₹812 crore (US$110 million)
1961	₹738 crore (US$100 million)

Sectors

	Sector	GVA (Rupees in Lakh) at current prices		GVA (Rupees in Lakh) at 2011-12 prices
		2019-20	% share	2019-20	% share
1	Primary Sector	27,617,048	19.37	18,973,486	17.39
1.1	Agriculture, forestry & fishing	22,282,348	15.63	14,245,950	13.06
1.11	Crops	13,956,699	9.79	8,962,827	8.21
1.12	Livestock	4,779,632	3.35	2,862,908	2.62
1.13	Forestry & logging	2,363,287	1.66	1,888,936	1.73
1.14	Fishing and aquaculture	1,182,730	0.83	531,280	0.49
1.2	Mining & quarrying	5,334,699	3.74	4,727,536	4.33
2	Secondary Sector	63,413,336	44.49	50,584,861	46.36
2.1	Manufacturing	51,064,957	35.82	40,892,857	37.48
2.2	Electricity, gas, water supply & other utility services	4,517,509	3.17	3,784,987	3.47
2.3	Construction	7,830,871	5.49	5,907,017	5.41
3	Tertairy Sector	51,512,119	36.14	39,549,816	36.25
3.1	Trade, repair, hotels and restaurants	18,051,035	12.66	14,616,582	13.40
3.11	Trade & repair services	18,051,035	12.66	14,616,582	13.40
3.2	Transport, storage, communication & services related to broadcasting	6,505,778	4.56	5,082,266	4.66
3.21	Railways	627,538	0.44	415,391	0.38
3.22	Services incidental to transport	3,851,614	2.70	3,281,339	3.01
3.26	Storage	79,223	0.06	52,051	0.05
3.27	Communication & services related to broadcasting	1,947,403	1.37	1,333,485	1.22
3.3	Financial services	7,646,745	5.36	6,273,832	5.75
3.4	Real estate, ownership of dwelling & professional services	8,470,228	5.94	5,926,791	5.43
3.5	Public administration & defence	5,010,315	3.51	3,617,774	3.32
3.6	Other services	5,828,016	4.09	4,032,571	3.70
	GVA at basic prices		142,542,503		109,108,163

Industrial

One of India's most industrialized states, Gujarat maintains a variety of industries, the principal ones being general and electrical engineering and the manufacture of textiles, vegetable oils, chemicals, soda ash, and cement. New industries include the production of fertilizers and petrochemicals. Major resources produced by the state include cotton, peanuts, dates, sugarcane, and petrol. The state is rich in calcite, gypsum, manganese, lignite, bauxite, limestone, agate, feldspar and quartz sand and successful mining of these minerals is done in their specified areas. Gujarat produces about 91% of India's required amount of soda ash and gives the country about 66% of its national requirement of salt. Chemical Industries in Gujarat count for more than 35% of Indian Chemicals production.

In recent years, Gujarat has gained a prominent place in India's automobile industry, with several automobile plants being set up in the state - Suzuki Motor Gujarat in Hansalpur near Ahmedabad, Tata Motors and Ford India in Sanand, MG Motor, Hero Motocorp, JCB in Halol, Honda Motors and Scooters India in Vithalapur, etc.

It is one of India's most prosperous states, having a per-capita GDP significantly above India's average. Kalol Khambat and Ankleshwar are today known for their oil and natural gas production. Dhuvaran has a thermal power station, which uses coal, oil and gas. The Tarapur nuclear station in Maharashtra supplies the remaining power. Also on the Gulf of Khambat, 50 kilometers southeast of Bhavnagar, is the Alang Ship Recycling Yard (the world's largest). General Motors produces the ‘Astra’ car at Halol near Vadodara. Jalalpur is a large town of Gujarat, where several small and large textile industrial units have been established. Surat, a city by the Gulf of Khambat, is a hub of the global diamond trade.

During the period 1960–1990, Gujarat established itself as a leader in various industrial sectors including textiles, engineering, chemicals, petrochemicals, drugs and pharmaceuticals, dairy, cement and ceramics, and gems and jewellery. The post-liberalization period saw Gujarat's state domestic product (SDP) rising at an average growth rate of 14% per annum in real terms (from 1994 to 2002).

Ahmedabad, Vadodara, Ankleshwar and Vapi are the hub of chemical industries in the state, having number of manufacturing units (private as well as state owned) manufacturing dyes, specialty chemicals, agricultural chemicals, pesticides, pigments, colors, etc. Rajkot city is the hub of engineering manufacturing and has many companies manufacturing auto components, auto engines, CNC machines, forging & casting parts, etc. The state operating companies like GNFC, GSPC, GSFC, GMDC are a few among flagship companies of the state.

Agriculture

Gujarat is the largest producer of major cash crop like cotton, groundnut, tobacco, cumin, sesamum, etc. in India. Other major crops produced are rice, wheat, jowar, bajra, maize, tur and gram. Gujarat has an agricultural economy the total crop area amounts to more than one-half of the total land area.

Animal husbandry and dairying have played a vital role in the rural economy of Gujarat. Dairy farming, primarily concerned with milk production, functions on a cooperative basis and has more than a million members. Gujarat is the largest processor of milk in India. Amul milk co-operative federation products are well known all over India and is Asia's biggest dairy. Among livestock raised are buffalo and other cattle, sheep, and goats. As per the results of livestock census 1997, there were 209.70 lakh livestock in Gujarat state. As per the estimates of the survey of major livestock products, during the year 2002–03 the Gujarat produced 6.09 million tonnes of milk, 385 million eggs and 2.71 million kg of wool. Gujarat also contributes inputs to industries like textiles, oil and soap.

Automobile

Gujarat has been witnessing increasing investment both from Indian and foreign companies in recent times on account of its pro-business policies and this has augmented well for the engineering industry in Gujarat, which contributes to about 10% of the country’s total engineering output. The automotive sector in Gujarat is still at a relatively nascent stage, and contributes to about 5% of the country’s total automotive output.important players in the region include Asia Motor Works, Atul Auto, Munjal Auto India Ltd. and Electrotherm. Rajkot district is the largest cluster for the production of auto components and diesel engines in the state. Gujarat has offered several incentives to Suzuki Motors to set up an export-oriented unit for production and export of its popular models including the A-Star. The state would assist the company in setting up railway links from its production unit to Mundra Port.

After Tata Motors relocated the Nano manufacturing plant to Sanand, a small town near Ahmedabad, Gujarat has emerged as a car manufacturing hub. Major multinational automobile companies like Suzuki Motor, Ford India, Honda, MG Motor and Hero MotoCorp have plants in operation in Gujarat. Gujarat also leads in upcoming hybrid and electric vehicle manufacturing facilities. Suzuki, in partnership with Denso and Toshiba, is building a lithium ion battery manufacturing facility at a cost of 1700 crore. Suzuki is planning to launch electric cars as well as electric bikes by 2020. The India-based JSW Group has signed an agreement to invest Rs 4000 crore to promote manufacturing electric vehicles in the state, which includes vehicle manufacturing, production of batteries, and storage solutions. MG Motors, a subsidiary of China's largest automobile company SAIC Motors, has bought General Motors' manufacturing facility in Halol, Gujarat, and is planning to start production by 2019. Tata Motors is also planning to produce electric cars from its Sanand plant.

Banking and finance

Gujarat has one of the best banking networks in the country and the banking business in the state is well supported by the thriving trade, commerce and industries.

The country’s first international financial services centre (IFSC) at Gujarat International Finance-Tec City (GIFT City) in Gandhinagar, when American multinational IBM inaugurated the IBM Software Labs at GIFT-IFSC. Conceptualized a decade and half ago as an IFSC, the pace of growth, participation and investment at GIFT City has seen unprecedented growth in the past three years. Institutions such as Bank of America,Standard Chartered Bank, Hongkong & Shanghai Bank Corporation Ltd, Citibank NA, Barclays Bank, Deutsche Bank, and JPMorgan Chase Bank National Association have set up IFSC Banking Units (IBUs) in GIFT city,Gujarat.By January 2021, the total banking transactions already reached $51 billion at GIFT IFSC. With GIFT City offering opportunities to foreign banks to book India-linked offshore businesses, more players are setting foot in Gujarat.

The following are the list of Banks based in Gujarat.

Indian Banks Based in Gujarat
Anchor Bank	Established	Headquarters	Government Shareholding	Branches	Total Assets	Revenues	Refs
Bank of Baroda	1908	Vadodara, Gujarat	63.97%	8,310	₹12.03 trillion (US$150 billion)	₹890.01 billion (US$11 billion)
Baroda Gujarat Gramin Bank	2019	Vadodara, Gujarat	n/a	489
Saurashtra Gramin Bank	1978	Rajkot, Gujarat	n/a	259
Gujarat Mercantile Co-operative Bank	1998	Ahmedabad, Gujarat
Gujarat state co-operative bank	1961	Ahmedabad, Gujarat
Gujarat Ambuja Co-op. Bank	1999	Ahmedabad, Gujarat
Ahmadabad district co-operative bank	1922	Ahmedabad, Gujarat
Rajkot Nagarik Sahakari Bank	1953	Rajkot, Gujarat
Shri Rajkot District Co. Operative Bank	1959	Rajkot, Gujarat
Foregin Banks
Anchor Bank			Location			Refs
MUFG Bank			GIFT City, Gujarat
Mizuho Bank			GIFT City, Gujarat
Standard Chartered			GIFT City, Gujarat
Hongkong Shanghai Banking Corporation			GIFT City, Gujarat
Citibank NA			GIFT City, Gujarat
Barclays Bank			GIFT City, Gujarat
Deutsche Bank			GIFT City, Gujarat
JPMorgan Chase Bank			GIFT City, Gujarat
Bank of America			GIFT City, Gujarat
KPMG			GIFT City, Gujarat
BRICS Bank			GIFT City, Gujarat

Oil and Gas

Gujarat is looking at moving forward to become the ‘Petrocapital’ of India.Gujarat accounts for 54 percent of India’s onshore crude and 39 percent of onshore Natural Gas Production. It has about 46 percent of India’s installed refining capacity and 60 percent of India’s total crude oil import facility. The Government has announced MoU’s worth USD 4.5 billion and investments worth USD 5.7 in Gujarat. Gujarat has a well established gas grid of 550 kms and it plans to expand the same to 2,200 kms with investment worth USD 500 million. Investments have been proposed to build new LNG terminals in addition to the existing terminals in Dahej and Hazira, are underway.

The State offers immense opportunities across the energy value chain.Progressive and investor friendly industrial policies, including rationalization of tax regime, power reforms and SEZ development coupled with the logistical proximity to the Middle East gas resources are among the significant growth enablers for the sector. Gujarat has well established distribution gas network and the LNG terminals at Hazira and Dahej have led to a strong local consumer base. Presence of cooperatives such as IIFCO, KRIBHCO, power companies like NTPC and GEB and industrial majors such as Reliance have led to a vibrant energy sector in Gujarat. The Jamnagar refinery is the largest in India in terms of refining capacity and also is considered as the biggest grassroots refinery in the world. Gujarat has oil & gas reserves located at Ankleshwar, Mesana, Tapti High,Hazira, Bharuch, Gandhar, Dahej, Jambussar, Palej, Kalol and isolated gas fields around Ahmadabad. In addition to this, it has discovered oil reserves in Dholka and Khambat.

Ports and Logistics

Gujarat, situated on the Western Coast of India, is a principal maritime State endowed with favourable strategic port locations. There are 41 ports, of which Kandla is a major port. Out of the remaining 40 ports, 11 are intermediate ports and 29 are minor ports under the control of Gujarat Maritime Board. These ports can be broadly classified into three categories: 1. Three all weather ports viz: Porbandar, Okha, and Sikka 2. Seven ports are all weather lighterage ports 3. The remaining 30 ports are fair weather lighterage ports for sailing vessels and fishing boats In 2005-06, Gujarat ports handled cargo traffic of 103.9 million metric tones.Thirty five percent of India’s exports are routed through Gujarat. By 2015, it is estimated that Gujarat’s port will handle 400 million tonnes (39 percent) of the country’s total throughput.

The prominence of Gujarat is by the virtue of having nearly 1,600 kms long coastline and being the nearest maritime outlet to the Middle East, Africa and Europe. Gujarat features the Gulf of Khambat and the Gulf of Kutch, and both offer logistical advantage for reaching the northern and western hinterland. This helps to capitalize on the strong manufacturing and trading base.Gujarat is considered as one of the advanced States in terms of infrastructure.The State has a total road length of 73,619 kilometers and has India’s first four lane highway. A knowledge corridor and IT parks are expected to come along Gandhinagar, Ahmedabad, Rajkot, Jamnagar, Bhavnagar, Surat and Vadodara.The State has 11 airports under the operational jurisdiction of Airports Authority of India. Apart from AAI airports, six airstrips are being developed by the State government.A rail freight corridor is underway in the western region, starting at JNPT(Mumbai) and ending in Delhi, passing through Valsad, Surat, Vadodara,Ahmedabad, Mahesana, Palanpur.Some major ports are connected to the main rail corridor and these routes would act as feeder routes. The region in and around Mahesana can be developed as a hub of warehouse facilities as all major rail routes converge in this area. It is not just the State government; even private players are taking keen interest in building the State’s dream of Vision 2015. JK White Cement and Adani Group, for instance, are developing the Greenfield port at Dholera and the Reliance Group is building a port facility at Sikka.

Pharmaceuticals and Chemicals

The state of Gujarat accounts for 40 percent of India’s total pharmaceutical production and 17 percent of its exports. Gujarat’s pharma industry is valued at USD 3.6 billion. There exist over 3,000 drug manufacturing units. The State houses several established companies such as Torrent Pharma, Zydus Cadila,Alembic Pharma, Sun Pharma and Dishman Pharmaceuticals, which have operations in the world’s major pharma markets.The State contributes to around 20 percent of India’s total chemical production.It produces about 98 percent of total soda ash, 90 percent of liquid chlorine and 66 percent of phosphatic fertilizers. Gujarat also houses India’s only chemical port terminal, which has a capacity of 3 million metric tonnes.

Gujarat is ranked number one in the pharmaceutical industry in India, with a 33% share in drug manufacturing and 28% share in drug exports. The state has 130 USFDA certified drug manufacturing facilities. Ahmedabad and Vadodara are considered as pharmaceutical hubs as there are many big and small pharma companies established in these cities.

Several factors have contributed to Gujarat’s well established pharmaceutical industry. Gujarat is a strong pharmaceutical manufacturing hub having a large number of small and medium manufacturing units. Its rich base of supply of active pharmaceutical ingredients has attracted several multinational players such as Wyeth, Sanofi-Aventis and Abbott to set up facilities in Gujarat. There are several pharma clusters around Ahmedabad, Baroda, and Vapi. Over 300 large projects in the sector have already been commissioned; while over 100 are under implementation.Gujarat has a strong base of diversified chemical industry, with approximately 700 large and medium scale units and 31,000 small scale and other factory sector units. Over 1,300 projects of the chemical and allied sectors have been commissioned.Gujarat has a strong infrastructure backing with good connectivity of road, rail,air and water. The well established linkages with raw material and machinery suppliers are significant growth drivers for the industry.

Gems and Jewellery

The Gems & Jewellery industry is a fascinating industry in many ways:traditional, on one hand and glamorous on the other. It is undergoing a gradual change from an object of investment to a fashion accessory. It is one of the fastest growing industries in the country and contributes to about 15 percent of India’s total exports. With diamond and jewellery units located in the cities of Gujarat –– Ahmedabad, Palanpur, Bhavnagar, Valsad, Navsari and Surat –– it becomes one of the main contributors to the gems & jewellery industry in India.Almost 80 percent of the cutting & polishing of diamonds (processing) is done in Gujarat. Ninety percent of total diamonds in Gujarat are processed by about 10,000 diamond units located in and around Surat, alone.G

Gujarat’s Gems & Jewellery sector is expected to grow at a rate of 15-20 percent in the current financial year. The future growth is likely to be driven by increased exports to US and other international markets and thro gh domestic consumption.

Gujarat offers a unique combination of demographics, supply base, government initiatives and production capacity. Gujarat has the talent pool needed to support this industry. India’s leading institutes such as Indian Diamond Institute and National Institute of Fashion Technology are located in Gujarat. In addition to this, the skilled labour is easily available and the labour costs are relatively lower as compared to other states in India. Gujarat offers economies of scale for capacity expansion due to large number of units and technology upgradation.

Textiles

The textile Industry is one of the oldest and the most important sectors of the Indian economy. Gujarat’s textile industry contributes in a big way to the industrialization of the State. About 33 percent of cotton production in the country is from Gujarat and the State contributes to about 35 percent of the woven fabrics from the organized sector in India. The city of Surat alone, contributes to 40 percent of art silk fabric produced in India and is the largest production base for man-made fabrics. Further, 23 percent of the State GDP comes from textiles. Gujarat contributes around 20 percent of textile exports from India and 6 percent of garments export in India. In the early 1990s, Gujarat saw a dramatic change in the textile industry scenario with the entry of denim manufacturing. Arvind Mills, Soma Textiles, Modern Denim started manufacturing denim in Gujarat, and soon the State was known as ‘India’s land of denim’.

Large availability of raw material like cotton has significantly contributed to the growth of textile sector in Gujarat. Proximity to ports and other mode of transport, liberal labour policies, cheap raw material and well developed textile machinery industry is attracting companies to set up units in Gujarat. In recent times there has been a shift of the textile hub from Mumbai to Gujarat, largely due to lower cost of real estate in Gujarat. The State is also supporting development of SEZs by giving tax incentives.

ITeS

IT-ITeS companies in Gujarat have grown from less than 10 in 1996 to about 415 by the end of 2004-05. The software exports have grown from a meager INR 4.75 crore to INR 200 crore, during the same period. With Ahmedabad, Gandhinagar and Baroda emerging as ITeS hubs, Gujarat now has more than 50 companies in Information Technology Enables Services (ITeS) segment, and operate more than 11,000 seats. Recently, 127 companies in ITeS segment have been registered with the Commissionerate of Information Technology. The State has one of the largest optical fiber network in the country with more than 60,000 kilometers network. In the recently held 'Vibrant Gujarat IT Summit', 19 companies signed Memorandum of Understandings (MoU) to invest a total of INR 11,067 crore. In the recently announced IT policy, the Government has targeted to create 200,000 jobs by 2011 in this industry.

Gujarat offers relatively lower cost of operations, due to lower cost of real estate and lower compensation level. Superior physical infrastructure coupled with strong policy impetus will significantly enhance the growth prospects of IT-ITeS industry in Gujarat. The communication network, which is the backbone of IT-ITeS industry, is strong in Gujarat. It has one of the largest optical fiber networks in the country with more than 60,000 kilometers network. In the recently announced IT policy for 2006-2011, the Government has taken various steps to promote IT-ITeS industry. Some of the policy initiatives include; a) Stamp duty waiver for IT park developer and concession for IT-ITeS units, b) Development of Special Economic Zones, which provides various financial incentives, c) Exemptions from payment of electricity duty for five years from commencement of operations, d) Exemptions from power cuts, and e) Simplification in labor laws.

Food processing industry

The Indian farming sector has come a long way since independence. India is the world's second largest producer of food next only to China. Over the last few years, a shift has been observed in the Indian food consumption pattern. These changes have given rise to the emerging industry of food processing. This industry is one of the largest industries in India; as it constitutes about 13 percent of manufacturing GDP and employs over 12 million people. Gujarat has witnessed an impressive agricultural growth in the last five years and is thenlargest producer of castor and tobacco in India. Gujarat boasts of being the leader in exports of processed food and vegetables in India with a strong base of 3,700 small scale and 150 large & medium scale food processing units. Companies such as Balaji,Real, Gopal,ITC, Amul, Hindustan Unilever, McCain have explored the potential of this sector in Gujarat.

Gujarat with a strong agricultural base, 3.6 million hectares of irrigated land and well developed agro research capabilities is well positioned to drive the growth of food processing industry. Gujarat offers a large number of incentives to set up food processing units. Hassel free policies such as single window clearance, a strong agricultural marketing network with over 200 Agricultural Produce Marketing Committees (APMCs) and over 110 cold storages are some of the enablers that have facilitated the rapid growth of this industry. The State also provides financial incentives by offering interest subsidies to agro-industrial units and air & sea freight subsidisies for agro exports

Hospitality and Tourism

The State Government decided the year 2006 as “Tourism year”, keeping in view the importance of tourism industry as an important factor of the development process and generator of large scale employment. The Government formulated “Gujarat Ni Chetanyatra” – Gujarat tourism policy for the year 2003-2006.Total of 38 Memorandum of Understanding (MOUs) for 69 projects in the tourism sector amounting to INR 20,821 crore was signed at the recent Vibrant Gujarat Global Investor's Summit. The efforts of the Gujarat Government worked in some measure as the State registered an increase of 32 percent in tourist arrivals in 2006, compared to the figures of 2005.The State witnessed 2.5 million domestic tourists and 50,000 foreign tourists. The average contribution of tourism industry to the State’s GDP is close to 2.5 percent, while the comparable figure for India is 5.3 percent. The average foreign tourist spend per person per day is close to USD 700 to 1050. With world class health facilities, zero waiting time and most importantly, one tenth of the medical cost in US or UK, Gujarat is becoming a preferred medical tourist destination. About 1,200 to 1,500 NRI’s, Non Resident Gujaratis (NRG’s) and a small percentage of foreigners come every year for different medical treatments. Gujarat contributes close to 25-31 percent of the total medical tourism business in India.

The Government is cashing on the thriving business and industrial development in the State. The State has enhanced tourism fund allotment from INR 30 crore to INR 100 crore in this financial year, of which INR 60 crore would be spent exclusively on improvement and upgradation of tourism related infrastructure and basic facilities. As part of the tourism year festival, the Government organized a mega event for “Navaratri” in an effort to promote event based tourism. In addition to this, the State has introduced ‘Walk in the Ashram’ tours in Sabarmati ashram, which has a historical connection with Mahatma Gandhi.The tourism sector in Gujarat has attracted dozens of hoteliers, because of its proximity to leading tourist states. Hotels have lined up INR 10,635 crore worth of investments, which are expected to create 26,370 jobs. Medical tourism is a recent concept in India and Gujarat has been able to match world standards in almost all areas of treatment.

Retail

India’s retail sector is one of the fastest growing sectors in the Indian economy. Gujarat, which has a strong middle class population and one of the highest per capita GDP, is now becoming a preferred destination for the organized retail sector. This is evident with the spurt of malls in the State with companies like Prozone that are looking at setting up their first two malls in Rajkot and Surat before entering other cities in India. Raymond, too, started its first kids apparel store, Zapp, in Ahmedabad before entering markets like Mumbai and Pune. The unit retail space in Ahmedabad is 2.3 square feet per household, which is amongst the highest in India as compared to four for NCR (Delhi) and 2.5 for Pune. The cost of rentals is also lower compared to other cities in India providing an incentive for the industry to flourish. Apparels and jewellery retailing offers tremendous opportunities for the sector. Gujarat, which, is the hub for textile and jewellery manufacturing in India is well positioned to exploit this opportunity. The better availability of power supply in the State would also fuel the consumption of consumer durables. The entrepreneurial skills of the local population coupled with Government initiatives of development through public private partnership are acting as a growth drivers for the sector. The Government plans to open 1,000 fair price stores in public-private partnership in various cities of Gujarat. The Government is also increasing tie-ups with co-operatives and private retail players to accelerate the growth of this industry.

Foundry

India has about 5000 foundries and is the fourth largest producer of castings in the world, with an annual output of over 7.5 million tons. Indian foundries regularly meet the demands and expectations of the global market and currently export about 300,000 tons annually. Many Indian foundries have adopted the state-of-the-art technology, in all areas of manufacturing.India has a stable domestic demand, which has helped the foundries survive the recent global economic downturn.India remains a high growth region for small cars, tractors and two wheelers. The annual production of cars and SUVs is already above one million mark. The industrial growth has been impressive at 5-6 %, in spite of the recessionary trends.

Of the many foundry centres in India, Gujarat has two leading clusters – Ahmedabad and Rajkot, each producing more than 40,000 tons/year. Ahmedabad has a number of small and medium size foundries, producing a variety of castings in Grey Iron, S.G. Iron, Steel and also Aluminum alloys. Rajkot engineering cluster produces a range of products such as castings, pump-sets, automobile components, diesel engine generating sets, bearings, machine tools and so on. In addition, a number of miscellaneous engineering items such as agricultural implements, hydraulic jacks, air compressors, fasteners and sobon are also manufactured in the cluster.The presence of Rajkot Engineering cluster in different engineering segments.

Foreign Trade

In fiscal year 2021-22, Gujarat's merchandise exports hit a record level of over 12,700 Crore INR (nearly $127 Billion) a highest in the country.The major merchandise exports from Gujarat during the year 2021 were:

HS Code	Commodity	Value in INR	Number of countries to which state exports the products
27101944	Automotic Diesel Fuel, Not Containing Biodiesel, Confirming	₹3,24,74,39,67,917	31
27101949	High Flash High Speed Diesel Fuel Conforming to Standard IS	₹1,32,62,27,19,966	26
30049099	Other Medicine Put Up for Retail Sale N.E.S.	₹1,03,64,11,20,149	185
27101920	Aviation Turbine Fuel	₹1,02,56,48,07,316	18
71023910	Diamond (Other Than Industrial Diamond) Cut or Otherwise Worked B	₹94,93,11,73,935	44
27101241	Motor Gasoline Conforming to Standard IS 2796	₹94,09,24,39,643	12
29024300	P-Xylene	₹88,84,69,54,133	11
71131120	Silver Jewellery Set With Gems	₹82,72,43,59,508	19
69072100	Of a Water Absorption Coefficient By Weight Not Exceeding 0.	₹76,39,15,85,956	178
27101290	Other	₹62,96,47,51,455	14

7 of top 12 Export Districts of India are in Gujarat; Jamnagar and Surat leading the list

Regular compilation of district-wise export data has been started from April 2021. India’s top 30 districts of exports along with top 5 exported commodities during the period April-September 2021-22 and the products/services identified with export potential are given below:

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Rajya Sabha.

Rank in India	Districts (States)	Top 5 Commodities	Value of Export (in US$ Million)	Products/Services identified with Export Potential
1	Jamnagar (Gujarat)	1. Petroleum Products	19260.20	Jamnagari Bandhani, Brass Articles
		2. Organic And Inorganic Chemicals	1794.57
		3. Plastic And Linoleum	410.54
		4. Engineering Goods	218.68
		5. Mica, Coal And Other Ores, Minerals Including Process	116.59
		Total of top 5 commodities	21800.58
		Total export of District	22110.60
2	Surat (Gujarat)	1. Gems And Jewellery	6872.54	Textile,  Banana, Surat Zari Craft, Pomegranate
		2. Engineering Goods	1262.74
		3. Man-Made Yarn/Fabs./Madeups Etc.	336.75
		4. Organic And Inorganic Chemicals	255.52
		5. Cotton Yarn/Fabs./Madeups, Handloom Products Etc.	191.04
		Total of top 5 commodities	8918.59
		Total export of District	9693.91
6	Bharuch (Gujarat)	1. Organic And Inorganic Chemicals	2268.54	Chemicals,  Banana
		2. Engineering Goods	810.39
		3. Plastic And Linoleum	570.46
		4. Drugs And Pharmaceuticals	406.06
		5. Cotton Yarn/Fabs./Madeups, Handloom Products Etc.	108.01
		Total of top 5 commodities	4163.46
		Total export of District	4695.14
8	Ahmedabad (Gujarat)	1. Drugs And Pharmaceuticals	1218.54	Pharma, Textile, Engineering, Plastics
		2. Engineering Goods	1139.32
		3. Cotton Yarn/Fabs./Madeups, Handloom Products Etc.	418.41
		4. Organic And Inorganic Chemicals	259.31
		5. Rice	247.95
		Total of top 5 commodities	3283.53
		Total export of District	4439.12
11	DevbhumiDwarka (Gujarat)	1. Petroleum Products	3676.8	Marine & Fisheries
		2. Organic And Inorganic Chemicals	4.79
		3. Marine Products	2.97
		4. Engineering Goods	2.08
		5. Ceramic Products And Glassware	0.92
		Total of top 5 commodities	3687.56
		Total export of District	3688.76
12	Kutch (Gujarat)	1. Engineering Goods	821.72	Mango, Kutch Embroidery, Kutch Shawls, Marine Products, Castor
		2. Organic And Inorganic Chemicals	477.16
		3. Rice	391.44
		4. Cotton Yarn/Fabs./Madeups, Handloom Products Etc.	331.5
		5. Mica, Coal And Other Ores, Minerals Including Process	191.56
		Total of top 5 commodities	2213.38
		Total export of District	3448.67
10	Vadodara (Gujarat)	1. Engineering Goods	783.44	Pharmaceuticals, Engineering
		2. Organic And Inorganic Chemicals	661.69
		3. Drugs And Pharmaceuticals	320.65
		4. Petroleum Products	170.69
		5. Plastic And Linoleum	127.52
		Total of top 5 commodities	3263.99
		Total export of District	3710.32
23	Valsad (Gujarat)	1. Organic And Inorganic Chemicals	643.9	Chemical and paper,  Mango, Marine Products
		2. Engineering Goods	297.87
		3. Cotton Yarn/Fabs./Madeups, Handloom Products Etc.	222.27
		4. Plastic And Linoleum	177.37
		5. Drugs And Pharmaceuticals	140.26
		Total of top 5 commodities	1481.67
		Total export of District	1970.23

State government revenue and spending

Article 246 of the Indian Constitution, distributes legislative powers including taxation, between the Parliament of India and the State Legislature.

The constitution does not have provision for the central government and the States to have concurrent power of taxation. The tables below lists the thirteen taxes to be levied by the Central government and nineteen taxes by States including Gujarat.

Central government of India

SL. No.	Taxes as per Union List
82	Income tax: Taxes on income other than agricultural income.
83	Custom Duty: Duties of customs including export duties
84	Excise Duty: Duties of excise on the following goods manufactured or produced in India namely (a)Petroleum crude (b)high speed diesel (c)motor spirit (commonly known as petrol) (d)natural gas (e) aviation turbine fuel and (f)Tobacco and tobacco products
85	Corporation Tax
86	Taxes on capital value of assets, exclusive of agricultural land, of individuals and companies, taxes on capital of companies
87	Estate duty in respect of property other than agricultural land
88	Duties in respect of succession to property other than agricultural land
89	Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares and freight.
90	Taxes other than stamp duties on transactions in stock exchanges and futures markets
92A	Taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce
92B	Taxes on the consignment of goods in the course of inter-State trade or commerce
97	All residuary types of taxes not listed in any of the three lists of Seventh Schedule of Indian Constitution

State governments

SL. No.	Taxes as per State List
45	Land revenue, including the assessment and collection of revenue, the maintenance of land records, survey for revenue purposes and records of rights, and alienation of revenues etc.
46	Taxes on agricultural income
47	Duties in respect of succession to agricultural land.
48	Estate Duty in respect of agricultural land
49	Taxes on lands and buildings.
50	Taxes on mineral rights.
51	Duties of excise for following goods manufactured or produced within the State (i) alcoholic liquors for human consumption, and (ii) opium, Indian hemp and other narcotic drugs and narcotics.
53	Electricity Duty:Taxes on the consumption or sale of electricity
54	Taxes on sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), Natural gas aviation turbine fuel and alcohol liquor for human consumption but not including sale in the course of inter state or commerce or sale in the source of international trade or commerce such goods.
56	Taxes on goods and passengers carried by roads or on inland waterways.
57	Taxes on vehicles suitable for use on roads.
58	Taxes on animals and boats.
59	Tolls.
60	Taxes on profession, trades, callings and employments.
61	Capitation taxes.
62	Taxes on entertainment and amusements to be extent levied and collected by a panchayat or Municipality or a regional council or a district council.
63	Stamp duty

Goods and Services Tax

The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments. It an indirect tax (or consumption tax) used on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.

Economy of regions

Districts of Gujarat, 2013

Central Gujarat Ahmedabad Vadodara Anand Chhota Udaipur Dahod Kheda Mahisagar Panchmahal

North Gujarat Gandhinagar Aravalli Banaskantha Mehsana Patan Sabarkantha

Saurashtra - Kutch Rajkot Amreli Bhavnagar Botad Devbhoomi Dwarka Gir Somnath Jamnagar Junagadh Morbi Porbandar Surendranagar Kutch

South Gujarat Surat Bharuch Dang Narmada Navsari Tapi Valsad

Rank	City Name	District	Population	GDP	GDP per capita	Literacy
1	Ahmedabad	Ahmedabad	6,357,693	$68 billion		92.30 %
2	Surat	Surat	5,935,000	$59.9 billion		87.74 %
3	Vadodara	Vadodara	4,065,771		$10.7 thousand	90.48
4	Rajkot	Rajkot	1,390,640
5	Bhavnagar	Bhavnagar	605,882
6	Jamnagar	Jamnagar	479,920
7	Junagadh	Junagadh	319,462
8	Gandhinagar	Gandhinagar	292,167
9	Gandhidham	Kutch	248,705
10	Nadiad	Kheda	225,071
11	Morbi	Morbi	210,451
12	Anand	Anand	209,410
13	Mehsana	Mehsana	190,753
14	Surendranagar Dudhrej	Surendranagar	177,851
15	Veraval	Gir Somnath	171,121
16	Navsari	Navsari	171,109
17	Bharuch	Bharuch	169,007
18	Vapi	Valsad	163,630
19	Porbandar	Porbandar	152,760
20	Bhuj	Kutch

Energy

Energy is an essential building block in the economic development of Gujarat . In an effort to meet the demands of rapid industrialization, the energy sector of Gujarat has undergone significant growth in past few years. Areas like resource exploration, capacity additions and sectoral reforms have been revolutionized. The energy sector can be categorized primarily in to Power, Oil & Gas respectively. The power sector includes generation, transmission and distribution of electricity. The power sector has grown considerably over the years and is able to support infrastructure development in the state. As far as oil & gas sector is concerned, the state has major contribution in areas of exploration & production, LNG terminal infrastructure, pipeline networks, refining, petro marketing and city gas distribution.

Electricity

Electricity generation for the state of Gujarat is handled by the Gujarat State Electricity Corporation Limited. The major distributors of electricity in Gujarat are Uttar Gujarat Vij Company Ltd., Dakshin Gujarat Vij Company Ltd., Paschim Gujarat Vij Company Ltd. and Madhya Gujarat Vij Company Ltd.. These institutions are subsidiaries of Guvnl with the transmission of electricity of handled by Gujarat Energy Transmission Corporation Limited.

Installed Capacity

The total installed capacity of Gujarat is 42208 MegaWatt (MW). Most of the electricity in Gujarat is generated through coal. Hydropower is the second largest means of producing electricity in the state. Gujarat also has significant installed capacities of Natural Gas, Renewables and Nuclear power plants. As of 2021-22, the share of electricity generated through coal stands at 16302 MW with a percentage share of 40 percent. The share of Hydropower is at 41 percentage with a capacity of 16588 MW. The contribution of Natural gas stands at 16 percent with a capacity of 6587 MW. The installed capacity of Renewable energy is 2 percent with a capacity of 772 MW. Finally, 559 MW is capacitated by Nuclear Power having a share of 1 percentage.

Renewable Energy

Main article: Solar power in Gujarat

As of March 31, 2022 the installed capacity of Renewable Energy sources of Gujarat is 13578 MW. The installed capacity of Wind energy stands at 6662 MW, Solar energy has an installed capacity of 6717 MW and other Renewable sources stand at 199 MW.

The locations of major solar parks in Gujarat have been mentioned in Solar power in Gujarat page.

Nuclear Energy

Currently, the state of Gujarat has an installed Nuclear Power capacity of 559 MW. The only Nuclear power plant in Gujarat is the Kakrapar Atomic Power Station.

The two existing units at the Kakrapar atomic power station feature pressurised heavy water reactors (PHWR) of 220MW capacity each. As of May 2020, unit one of the Kakrapar atomic power station generated 30,683 million units of electricity while unit two produced 32,442 million units

Tourism

Main article: Tourism in Gujarat

From top and L-R: Sabarmati Ashram, Gujarati attire, Somnath Temple, Rann of Kutch, Dwarkadhish Temple, Statue of Unity, Laxmi Vilas Palace at Vadodara.

India's first world heritage city, Ahemdabad, is in Gujarat. Gujarat is the sixth largest state in India, located in the western part of India, with a coastline of 1,600 km (990 mi) (the longest in India). It is one of the most popular states in the country, with an annual footfall of 19.81 million tourists in 2010–11. Gujarat offers scenic beauty from Great Rann of Kutch to the hills of Saputara. It is the world's sole home of pure Asiatic lions.

During the Sultanate reign, Hindu craftsmanship mixed with Islamic architecture, giving rise to the Indo-Saracenic style. Many structures in the state are built in this fashion.

It is also the birthplace of Mahatma Gandhi and Sardar Vallabhbhai Patel, the great iconic figures of India's Independence movement.

Amitabh Bachchan is currently the brand ambassador of Gujarat Tourism. The ‘Khushboo Gujarat Ki' campaign by Amitabh Bachchan has grown tourism in Gujarat by 14 per cent, twice the national growth rate.

The Statue of Unity has emerged as a major tourist destination in Gujarat. It attracted average 15,036 visitors in the month of November, 2019.

External links

• Gujarat 2050 map showing major development areas