Economy of Gujarat - Industrial Growth

Industrial Growth

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.

It is one of India's most prosperous states, having a per-capita GDP significantly above India's average. Kalol Khambat and Ankaleshwar 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 1960–90, Gujarat established itself as a leader in various industrial sectors – textiles, engineering, chemicals, petrochemicals, drugs & pharmaceuticals, dairy, cement & ceramics, gems & jewellery, etc. Post-liberalization period saw Gujarat's State Domestic Product (SDP) rising at an average growth rate of 14% per annum in real terms (from 1994–2002).

Ahmedabad, 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, Specially chemicals, Agro Chemicals, Pesticides, Pigments, Colors etc. Rajkot city is the hub of Engineering manufacturing and has many manufacturing 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.

Gujarat achieved as much as 35% of augmentation in its power generation capacity during the period 1995–96 and 2000–01. The producers (IPPs) have contributed significantly in this addition. As a matter of fact Gujarat is one of the first few states in India to have encouraged private sector investment and are already in operation. In addition the liquid cargo (chemicals) handling port at Dahej is also set up in joint sector and made operational. At an investor's summit entitled Vibrant Gujarat arranged between January 10, 2007 to January 13, 2007, at Science City, Ahmedabad, the state government signed 104 Memorandum of Understandings for Special Economic Zones totaling worth Rs 2.5 lakh crore. However, most of the investment was from domestic industry.

The Vibrant Gujarat-2011 (5th Global Summit) was held at Mahatma Gandhi Mandir, Gandhinagar. This event has got the huge response from the various Industries, wherein total MoUs worth (approximately) 20.64 Lac Crore were signed, which are expected to generate employment of (approximately) 58.40 lac.