State Scan - Gujarat


Gujarat has a prominent place in India’s trade and commerce since Indus Valley civilisation. The state enjoys a strategic positioning, long coastline and strong infrastructure making it an ideal ground for establishing business. In terms of government’s investment friendliness too, the state stands top with initiatives like privatisation of ports, power generation, infrastructure and e-governance for business transactions.

As per industry reports, the industries in Gujarat stands close to 16% of the country’s total industrial production of India and with the highest share (12.7%) of IEM investments in India. In this state which holds about 6% of India’s geographical area, about 43% of the state’s population lives in urban area. The state houses several MNCs, large private players as well as public sector enterprises and several SME units.


Key Strengths:
•    Gujarat is an industrial state with several SME investment opportunities
•    With a share of 15.14% of India’s total investments, Gujarat stands on top among all Indian states.
•    With 41 ports within the state, the state accounts for 25% of the country’s sea cargo
•    55 SEZs with an area of 27,125 hectares.
•    Infrastructural strength
•    Uninterrupted power supply
•    Low cost Skilled labourers
•    Geographic advantage due to its proximity to emerging markets
•    Investment friendly policies

Focus Sectors:
Manufacturing: Gujarat holds a prominent position in the production of soda ash, processed diamond, petroleum products, chemicals and pharmaceuticals. The leading industries of the state also include engineering, auto and textiles. The manufacturing sector of the state aims at a level of US $ 200 billion by 2025.

Engineering: About 9% of the national engineering output belongs to this North-Western state. A specialty of Gujarat’s engineering segment is the presence of SME clusters. The investment opportunities in this segment includes manufacturing of transformers & boilers, auto component manufacturing, industrial tools, etc

Chemicals and Pharmaceuticals: About 62% of the petrochemical output of India comes from Gujarat, with nearly 6,600 products. The industry expects to reach an investment of USD 70 billion in 2017. The state produces large quantities of basic chemicals, caustic soda, chloromethane, caustic potash and bio-fertilizers. A specific investment region has been planned in the state (PCPIR) with manufacturing units for domestic and export led production of petroleum and petrochemicals.

Gujarat also holds a prime position in patent applications with several SMEs and academic institutions.  Over 1,100 formulation units and about 400 bulk drug manufacturing units are established in the state.

Gems & Jewellery: Surat in Gujrat houses the largest diamond processing cluster in the world. There are about 10,000 diamond units in and around the city employing about 1 mn people.

Textiles: Gujarat covers about 10% of the national Technical Textiles output.  Gujarat also stands as the top producer of cotton in India with more than 30% of the country’s total output.

Financial Services: Gujarat holds immense opportunities in banking and financial sector business other than any other Indian state. The Gujarat International Financial Tech City (GIFT) is estimated as the first of its kind in India- one stop place for global financial services industry. It is stretched over 500 acres between Gandinagar & Ahmedabad and with a promise of huge investment opportunities.

IT- ITS, BPO- The area between Ahmedabad and Gandhinagar is experiencing vast development especially as a knowledge corridor. About14 Special Economic Zones are planned by the state government specifically for IT/ITES and with an expected CAGR of 15% in the coming ten years. The state’s IT hub Infocity is equipped with world class infrastructure.

Tourism: The Tourism Corporation of Gujarat Limited (TCGL) experienced huge surge very recently. Gujarat Tourism is also ranked high as a responsible tourism destination. The infrastructure of the state also helps the sector’s upward movement; with12 Domestic Airports (the highest in any Indian State) and 1 International Airport.  This segment is opening up several investment opportunities in the state. State government also identification of specific zones for the promotion of sustainable and MICE Tourism clusters. An upcoming special project in this sector is the Aliya Betand Dholera Special Investment Region.
Agri & Food Processing: In the agricultural growth rate table as well Gujarat holds a top position with a CAGR of 10.7% in the last 10 years. The state’s total agricultural area is around 128 lakh hectares stands around 65% of the total area. Gujarat is the leading producer of several fruits and vegetables like onions, potatoes, papaya, lime, guava, custard and banana in the country.  This comes around 14 -20 percent of the country’s total. The state is also ranked as the world’s largest producer of cumin.

Gujarat also holds a 28% share of the national marine export. Gujarat Milk Marketing Federation is the No.1 dairy producer in Asia and 2nd in the world. The governmental schemes for agri-infrastructure includes mega food parks, modernization of existing units with technology upgradation, cold chains, will be an impetus for the industry.

MSMEs in Gujarat: When the growth rate SME sector in the country is 19 per cent on an average, the growth of SMEs in Gujarat SME is marked at 85 per cent. The state is moving out with a special unit in the industries department for patent and innovation security requirements of small businesses. The Gujarat Cooperative Milk Marketing Federation, the state’s textile and the tourism industries are major impetus for SMEs in the state. Other areas where SMEs are benefited are the food processing units. According to the industrial policy of the state, any self funded small scale unit can avail 10% (limited to maximum Rs. 10 lakh ) of the eligible fixed capital investment under interest subsidy or investment subsidy scheme – 2000. Similarly schemes are available for modernization as well.

Upcoming Big Projects:
•    Delhi-Mumbai Industrial Corridor (DMIC)
•    Dholera Special Investment Region (DSIR)
•    Petroleum, Chemical & Petrochemical Investment Region (PCPIR) - Dahej
•    Gujarat International Finance Tech City (GIFT)
•    SIRs, SEZs

B Schools and Entrepreneurship Promoters in Gujarat
•    Entrepreneurship Development Institute of India (EDI)-
•    IIM Ahemedbad-
•    IBS Ahemedabad-
•    B K School of Management-