Economy of Gujarat

Economy of Gujarat
GauravPath1.jpg
CurrencyIndian Rupee
1 April – 31 March
Statistics
GDP18.05 lakh crore (US$250 billion) (2019–20)[1]
GDP rank5th
GDP growth
11% (2017–18)[2]
GDP per capita
252,447 (US$3,500) (2018–19)[1]
GDP per capita rank
11th
GDP by sector
Agriculture: 19%
Industry: 45%
Services: 36% (2017–18)[2]
Population below poverty line
Positive decrease 16.63% in poverty (2017–18)[3]
Increase 0.672 medium (2018) (21st)
UnemploymentPositive decrease 3.9% (Nov 2020)[4]
Main industries
Public finances
15.7% of GSDP (2020–21 est.)[2]
−33,536 crore (US$−4.7 billion) 1.78% of GSDP (2020–21 est.)[2]
Revenues1.63 lakh crore (US$23 billion)(2020–21 est.)[2]
Expenses2.14 lakh crore (US$30 billion)(2020–21 est.)[2]

All values, unless otherwise stated, are in US dollars.

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. Industrial products include cement and petrol. Gujarat recorded the lowest unemployment rate in India in 2015, with 1.2% of the labour force being unemployed.[5]

Contribution

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.[6] The company has also planned another SEZ (special economic zone), in Jamnagar.[7][8]

Gujarat ranks second nationwide in gas-based thermal electricity generation with national market share of over 8% and second nationwide in nuclear electricity generation with national market share of over 1%.

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

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 of628+9 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 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.

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.[9] However, most of the investment was from domestic industry.[10]

Agriculture

Gujarat is the main producer of tobacco, cotton, and groundnuts 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.[11] 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

After Tata Motors relocated the Nano manufacturing plant to Sanand, a small town near Ahmedabad, Gujarat has emerged as a car manufacturing hub.[12] Major multinational automobile companies like Suzuki Motor, Ford India, Honda and Hero MotoCorp have plants in operation in Gujarat.[13] 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.[14] 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.[15]

Pharmaceutical

Gujarat is ranked number one in the pharmaceutical industry in India, with a 33% share drug manufacturing and 28% share in drug exports. The state has 117 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.[16]

Tourism

India's first world heritage City Ahemdabad in Gujarat. Gujarat is the sixth largest state in India, located in the western part of India, with a coastline of 1600 km (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.[17] 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.[18]

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.[19]

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.[20][21]

References

  1. ^ a b "MOSPI Net State Domestic Product, Ministry of Statistics and Programme Implementation, Government of India". Retrieved 7 April 2020.
  2. ^ a b c d e f "Gujarat Budget Analysis 2020-21" (PDF). PRS Legislative. Retrieved 19 March 2020.
  3. ^ "SDGs India Index". NITI Aayog. 31 December 2019.
  4. ^ "Unemployment Rate in India". Centre for Monitoring Indian Economy. p. 1. Retrieved 3 November 2020.
  5. ^ "Indian Economy At a Glance [Infographic] - Quickonomics". Quickonomics. 12 September 2015. Retrieved 19 November 2016.
  6. ^ "Archived copy". Archived from the original on April 23, 2006. Retrieved June 14, 2008.CS1 maint: archived copy as title (link)
  7. ^ "India talking of Gujarat's SEZ model: Narendra Modi". domain-b.com. 2006-11-02. Retrieved 2013-10-26.
  8. ^ "Mukesh Ambani wants to build another ShanghaiReal Estate - Indiatimes". Realestate.indiatimes.com. Retrieved 2013-10-26.
  9. ^ [1] Archived November 15, 2010, at the Wayback Machine
  10. ^ [2] Archived December 25, 2007, at the Wayback Machine
  11. ^ Mitul Thakkar, TNN Sep 14, 2006, 12.53am IST (2006-09-14). "Amul to become world's largest liquid milk brand – Economic Times". Economictimes.indiatimes.com. Retrieved 2012-07-09.CS1 maint: multiple names: authors list (link)
  12. ^ PTI (2017-07-13). "Nano project led to Gujarat as car manufacturing hub: Ratan Tata – Economic Times". Economictimes.indiatimes.com. Retrieved 2018-08-20.
  13. ^ Ketan Thakkar (2018-02-09). "Gujarat set to become the Detroit of India – Economic Times". Economictimes.indiatimes.com. Retrieved 2018-08-20.
  14. ^ Ketan Thakkar (2018-07-05). "Not just cars, Suzuki to bring in electric bikes – Economic Times". Economictimes.indiatimes.com. Retrieved 2018-08-20.
  15. ^ Maulik Pathak, Amrit Raj (2017-09-28). "Gujarat set to become India's first electric vehicle hub – Livemint". livemint.com. Retrieved 2018-08-20.
  16. ^ "USFDA team to visit Gujarat today – The Hindu BusinessLine". thehindubusinessline.com. 2018-08-19. Retrieved 2018-08-19.
  17. ^ "Statement Showing The Details of Tourist ?Visited Gujarat During The Year 2010-11" (PDF). Gujaratourism.com. Archived from the original (PDF) on 2013-09-25. Retrieved 2013-10-26.
  18. ^ "Vice President Ansari arrives at Gir Wildlife Sanctuary, IBN Live News". Ibnlive.in.com. Retrieved 2012-07-09.
  19. ^ Our Bureau. "Business Line : Industry & Economy / Economy : TAAI award for Gujarat Tourism". Thehindubusinessline.com. Archived from the original on 2012-10-26. Retrieved 2012-07-09.
  20. ^ Bureau, Our. "Statue of Unity gets more visitors daily than Statue of Liberty: SSNNL". @businessline. Archived from the original on 2020-06-20. Retrieved 2019-12-22.
  21. ^ Dec 7, TNN /; 2019; Ist, 03:31. "With 15k visitors a day, Statue of Unity overtakes Statue of Liberty | India News - Times of India". The Times of India. Archived from the original on 2020-06-20. Retrieved 2020-06-20.CS1 maint: numeric names: authors list (link)

External links