Why Investment In Gujarat

Brief Introduction

Gujarat is one of the most prosperous states of India owing to its agricultural productivity and industrial development. The per capita GDP of Gujarat is 2.5 times the country’s average GDP. The state leads the country in various industrial sectors namely, textiles, engineering, chemicals, petrochemicals, drugs and pharmaceuticals, dairy, cement and ceramics, gems and jewellery.

In the past few years, Gujarat’s State Domestic Product (SDP) has been rising continuously at an average growth rate of 12.4 % per annum.

The state contributes to 21% of the country’s exports and 6.42% of the national GDP at constant prices. The industrial growth of Gujarat with a figure of 8.52% could be way ahead of many Indian states and other Asian giants like Singapore, Malaysia and Korea.

Industrial growth

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 98% of India’s required amount of Soda Ash and gives the country about 78% of its national requirement of salt. It is one of India's most prosperous states, having a per-capita GDP significantly above India's average.

Agriculture

Gujarat is the main producer of tobacco, cotton, and groundnuts in India. Other major food 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.

Gujarat is the largest producer of milk in India. Amul milk co-operative federation products are well known all over India, and it is Asia's biggest dairy.

Air

Gujarat has ten airports, the most of any Indian state as per the list of airports in India. All are domestic airports except Sardar Vallabhbhai Patel International Airport in Ahmedabad, which also offers international flights.

Future Airports

Zalawad Airport — Future airport for Surendranagar area.

Fedara (Ahmedabad) — Proposed International Airport near Fedara village of Bhāl region.

Rail

Gujarat comes under the Western Railways zone of the Indian Railways. Vadodara Railway Station is the busiest railway station in Gujarat as it is situated on the Mumbai – Delhi Western Railway Mainline.

The national highway network of Gujarat has benefited from the Golden Quadrilateral and North South East West axis of the National Highway Development Program passing through the State. The State has implemented several network improvement initiatives such as the World Bank funded roads, Pragati Path, Kisan Path and Vikas Path road development programs. Such programs have led to substantial improvement of several key stretches of State Highways, offering fairly sound readership experiences.

Road

The state of Gujarat has one of the most extensive and traffic intensive road network in the country. The total road length in Gujarat currently stands at about 74500 km. The road density in the state stands at around 38 km per 100 sq km, and 146 km per lakh of population.

The national highway network of Gujarat has benefited from the Golden Quadrilateral and North South East West axis of the National Highway Development Program passing through the State. The State has implemented several network improvement initiatives such as the World Bank funded roads, Pragati Path, Kisan Path and Vikas Path road development programs. Such programs have led to substantial improvement of several key stretches of State Highways, offering fairly sound readership experiences.

Port Sector

The state of Gujarat has 40 minor and intermediate ports geographically dispersed across South Gujarat (13 ports), Saurashtra (23) and Kutchch (4) regions. The Gujarat Chemical port terminal at Dahej has commenced operations since Jan 2001. The LNG terminal at Dahej is developed by M/S Petronet India Ltd is operationalised from February, 2004. The LNG terminal at Hazira awarded to Shell Essar Consortium is in operation since 2005.The Govt. of Gujarat has signed concession agreements with Pipavav, Mundra, GCPTCL and Hazira port developers. Several other port sites have been awarded to private developers and the process of award is at various stages of implementation.

Power Sector

Gujarat has been ranked second in overall performance of power sector as per the Power Sector Rating Report (2005) of Crisis – ICRA submitted to the Ministry of Power. Gujarat rank third in total generation of installed capacity of power among all the states in India. There are 23 power plants located in Gujarat which includes nine thermal power plants, nine gas power plants, four hydro power plants and one atomic power plants.

Information Infrastructure

IT in Gujarat Gujarat has always been center of attraction by investors in various industries as well as infrastructure projects. Gujarat is also good location for IT industry. There are several big IT software companies like TCS, PCS, NIIT to name a few in Gujarat. To boost the IT sector further, the Government of Gujarat has come out with new IT Policy and IT incentive policy.

The State has one of the largest optical fiber networks 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.

OIL & 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.

Texttiles

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.

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 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 phosphoric fertilizers.

Vibrant Gujarat is a biennial Global Investors' Summit held by the Government of Gujarat in Gujarat, India. The event is aimed at bringing together business leaders, investors, corporations, thought leaders, policy and opinion makers; the summit is advertised as a platform to understand and explore business opportunities in the State of Gujarat.

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