“CONTRIBUTION OF GUJARAT IN INDIAN ECONOMY”

A PROJECT REPORT

SUBMITTED BY

BADI MOHMADMUNAF

in partial fulfillment for the award of the degree

of

MBA
INTERNATIONAL AGRI-BUSINESS

UNDER THE GUIDENCE OF

MR. T. S. SHIBIN

(Asst. Prof, IABMI, AAU, Anand)

INTERNATIONAL AGRI-BUSINESS MANAGEMENT

INSTITUTE

ANAND AGRICLTURAL UNIVERSITY

ANAND – 388110

FEBRUARY – 2009

ABSTRACT

1
 Gujarat is one of the leading industrial states of the country. Led

by entrepreneurial spirit and unfaltering State Government support,

Gujarat is a manufacturing powerhouse with world class production

capabilities. Gujarat accounts for 25.8% of the country's total investment.

A strong manufacturing sector is the edifice of economic activity in

Gujarat. The state contributes 15.59% to the total value of output added

by manufacturing sector of the country.

Gujarat was the first state in the country to enact the Gujarat

Infrastructure Development Act. The Gujarat Infrastructure Development

Board set up in 1995 under this Act facilitates the flow of funds from the

private sector into the infrastructure sector and ensures coordination

among various agencies.

State government is encouraging multinationals and leading Indian

companies to turn their manufacturing plants in the state into global

sourcing bases.

Gujarat plays an important role in Indian Economy and share 14%

of total export of India.

CONTENTS
2
CHAPTE PAGE
TITLE
R NO. NO.
LIST OF TABLES IV
LIST OF FIGURES V
LIST OF NOMENCULTURE VI
1 OBJECTIVE 1
2 INTRODUCTION 2
2.1 The Land 3
2.2 The Climate 3
2.3 The People 4
OVERVIEW OF GUJARAT’S
3 5
ECONOMY
3.1 Gross State Domestic Products 5
3.2 Per Capita Income 6
3.3 Agriculture 6
3.4 Industry 7
3.5 Services 8
4 INFRASTRUCTURE OF GUJARAT 9
5 KEY SECTORS OF THE STATE 13
5.1 Chemical Sector 13
5.2 Drugs and Pharmaceutical 13
5.3 Textile Sector 14
5.4 Agriculture and Food Processing 15
5.5 Gems and Jewellery 15
5.6 Engineering and Automobiles 16
CHAPTE PAGE
TITLE
R NO. NO.
5.7 Oil and Gas 17

3
 5.8 Service Sector 18
6 BUSINESS OPPORTUNITIES 19
CONTRIBUTION OF THE GUJARAT
7 21
TO THE NATION
8 FUTURE INVESTMENT 22
9 CONCLUSION 25
10 SUGGESTION 26
11 REFFERENCES 27

LIST OF TABLES

4
TABLE CAPTION PAGE NO
Monthly Per Capita Consumer
1 6
Expenditure
2 SEZs in Gujarat as on 30-09-2007 10

3 Sector Wise MoUs Signed in 2009 23

LIST OF FIGURES
5
FIGURE CAPTION PAGE NO

1 Geographical Map of Gujarat 2

2 Growth Rate of GSDP of Gujarat 5

Sectoral Contribution to GSDB

3 7
(2006-07)

4 State Wide Gas Grid Project in Gujarat 11

5 Industries with Potential for Investment 20
6 Contribution of Gujarat to the Nation 21

NOMENCLATURES

6
 AAI Airports Authority of India
BOOT Build Own Operate Transfer
DMIC Delhi Mumbai Investment Corridor
Fig. Figure
GDP Gross Domestic Period
GGCL Gujarat Gas Corporation Limited
Govt. Government
GSDP Gross State Domestic Period
GSPC Gujarat State Petroleum Limited
IRs Investment Regions
IT Information Technology
Km Kilometre
LNG Liquefied Natural Gas
MoUs Memoranda of Understandings
MTPA Mega Tones Per Annum
ONGC Oil and Natural Gas Corporation
SEZs Special Economic Zones
SIRs Special Investment Region
SMEs Small and Medium Enterprises
sq kms Square kilometres
US$ United State's Dollar
VGGISs Vibrant Gujarat Global Investor's Summits
% Percentage
ºC Degree Centigrade

OBJECTIVE

Primary Objective:

 To know the contribution of Gujarat in Indian economy.

7
Secondary Objective:

 Study the different sector to know in which sector Gujarat

contribute a major role.

 To know the available infrastructure for doing business in the

state.

 State government policy to inspire the new investor to invest

their money in Gujarat.

 To know the opportunity and scope of Gujarat state for

Entrepreneurship.

INTRODUCTION

Situated on the west coast of India, Gujarat is one of the leading

industrial states of the country. It covers a geographical area of 1,96,024
sq km and accounts for 5.96% of the total area of India. Led by
entrepreneurial spirit and unfaltering State Government support, Gujarat
is a manufacturing powerhouse with world class production capabilities.
Gujarat accounts for 25.8% (Reserve Bank of India Study Report, 2007)
of the country's total investment. A strong manufacturing sector is the
edifice of economic activity in Gujarat. The state contributes 15.59% to
8
the total value of output added by manufacturing sector of the country
(Socio Economic Review, 2008).

Fig.1: Geographical map of Gujarat

1. The Land :

Gujarat is the western most state of India and is bounded by the Arabian
Sea in the west, by the states of Rajasthan in the north and north-east,
Madhya Pradesh in the east, and Maharashtra in the south and southeast.
It also shares an international boundary with Pakistan at the north-
western fringe. The two deserts, one north of Kutch and the other
between Kutch and mainland Gujarat are saline wastes.

Gujarat has a coast-line of about 1600 km which is the longest among all
states of the country. Gujarat is rich in bio-resources and has a forest
cover of 1.88 billion hectares. It has 10.7 million hectares of highly

9
diversified cropping area and is a leading producer of horticultural crops.
It is rich in mineral resources like limestone, lignite, gypsum and bauxite.
For the purpose of administration, the State presently comprises of 26
districts.

2. The Climate :

Due to the presence of a desert, the climate is mostly dry in the north-
west, and wet in the southern districts because of heavy monsoon season.
The temperature ranges from 10°C to 45°C in most parts of the State.
The Arabian Sea reduces the temperature and renders the climate more
pleasant and healthy. The year can be divided into: the winter season
from November to February, the summer season from March to May, the
south-west monsoon season from June to September, and the intervening
month of October.
3. The People :

The population of Gujarat as on March 1, 2001 stood at 50.06 million

which is 4.93% of India's population. The growth rate of the population
for the decade 1991-2001 was 22.66%. The density of Gujarat was 258
persons per sq km as opposed to 325 persons per sq km in India in 2001.
The life expectancy at birth in Gujarat was 61 years, whereas in India it
was 59 years in 1996. The literacy rate in the State stood at 69.97% in
2001, whereas in India it was 65% during the same year. As per the
population consensus 2001, 37.36% (Socio Economic Review 2007-
2008) population of Gujarat resides in urban areas. The proportion of the
population involved in running owned business in Gujarat is the highest
among all states in India. English, Hindi, and Gujarati are the three major
languages of Gujarat.
10
 OVER VEIW OF GUJARAT’S ECONOMY

A strong manufacturing sector is the bedrock of economic activity in

Gujarat. In the last two decades, the state witnessed an accelerated pace
of industrialisation. The contribution of the manufacturing sector in the
state economy has doubled in the past decade because of its strategic
location, excellent infrastructure support, extensive natural resource base
and a proactive government.

1. Gross State Domestic Product

Gross State Domestic Product (GSDP) at factor cost at constant (1999-

2000) prices in 2006-07 was US$45.30 billion as against US$41.52
billion in 2005-06. The GSDP registered a growth of 9.17% at constant
prices in the year 2006-07. Gujarat contributed 6.50% to the Gross
Domestic Product (GDP) of India in the year 2006-07.

11
 Fig.2: Gujarat State Domestic Product Growth Rate (at Constant
Price)
(Source: Socio-Economic Survey 2007-2008)
2. Per Capita Income

The per capita income at current prices has been estimated at US$915 in
2006-07 (higher than the national average of US$627) as against US$805
in 2005-06, registering an increase of 13.76% during the year (Source:
Socio-Economic Survey 2006-2007).

The growth in industrial activity has brought about prosperity in the

state. The number of people living below the poverty line has registered a
decline. The purchasing power of people has increased immensely. The
monthly per capita consumer expenditure of the state is well above the
national average.

Table no: 1 Monthly Per Capita Consumer Expenditure (in US$)

Rural Urban

12
 Gujarat 12.2 25.4
India 11 21

(Source: Socio Economy Survey of the State, Govt. of India (2007))

3. Agriculture

A majority of the state's population continues to rely on agriculture as its

principal source of livelihood. Though cash crop cultivation is the
predominant feature of agriculture, the state has the potential to grow a
wide variety of agricultural and horticultural crops owing to its varied
agro-climatic zones.

Agriculture is well established in terms of natural resources, skilled

labour force, enterprising farmers, and the market network. The major
food crops in the state are rice, wheat, jowar, bajra, maize, tur, gram,
groundnut; while major non food crops are cotton, tobacco, and isabgul.
Agriculture accounted for around 18.22% (at constant prices) of the
State's GSDP in the year 2006-07.

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 Fig. no: 3 Sectoral Contribution to GSDP in Gujarat

4. Industry

The secondary sector accounted for 37.78% (at constant prices) of the
State's GSDP in the year 2006-07. Gujarat ranks second in state-wise
percentage share of Net Value Added by manufacturing in the factory
sector of India according to the Annual Survey of Industries (2004-05).
Gujarat has been a front runner in industries including textiles,
chemicals, petrochemicals, pharmaceuticals, engineering, oil and gas,
ceramics, gems and jewellery, and agro-based products. There are around
202 industrial estates in Gujarat.

5. Services

The service sector consists of the ‘soft’ parts of economy such as

Insurance, Retail, Tourism, Banking, Education and Social Services. In
soft sector employment, people use time to delay knowledge assets,
collaboration assets and process engagement to create production,
performance improvement potential and sustainability.

Service sector in Gujarat is growing at a highest growth rate of 15.99 %

among other sectors. Service sector contribute 44 % of GSDP in 2007-08
compared with 41.45 % based on earlier.

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 INFRASTRUCTURE OF GUJARAT STATE

Gujarat was the first state in the country to enact the Gujarat
Infrastructure Development Act. The Gujarat Infrastructure Development
Board set up in 1995 under this Act facilitates the flow of funds from the
private sector into the infrastructure sector and ensures coordination
among various agencies. Gujarat was one of the first states to set up
industrial parks in India and is now in the process of upgrading the
infrastructure support for these parks. The state is now focused on setting
up industry specific parks which can offer specialised services.

The State is home to India's leading business school Indian Institute of

Management, Ahemdabad (IIM-A), and other important institutes such as
Institute of Rural Management, Anand (IRMA), National Institute of
Design (NID), National Institute of Fashion Technology (NIFT), and
Entrepreneurship Development Institute (EDI). Apart from the leading
institutes the State is also home of engineering institutes and
management schools. Further, the State Government plans to establish a
shipbuilding university, the first of its kind in the country and it is going
be established in Kutch.

Further, the industrial development in the state provides vast potential for
setting up of new educational institutes in areas of marine engineering,

15
port management, gems and jewellery design, fishery and fish
processing, urban planning, disaster management and biotechnology.

Gujarat has a 1,600 km indented coastline with I intermediate, I major

and 29 minor ports, which handle over 80 per cent of the port traffic in
the country. Gujarat's ports handle 20 % of the total cargo of the country.
Kandla, India's largest port handled 41.5 MT of cargo in 2003-04.

Other ports in the state, the Gujarat Pipavav Port at Pipavav (Saurashtra)
and the recently commissioned Gujarat Adani Port at Mundra (Kutch)
were the country's first Greenfield ports to be developed on a Build-
Own-Operate-Transfer (BOOT) basis. Mundra is a state-of-the-art port
that facilitates berthing of large vessels while Dahej in Gujarat is the
country's only chemical handling port. It is estimated that by 2015,
Gujarat's ports will handle 39 per cent of the country's total cargo.

The state has also 51 SEZs located around the different places at the end
of October (2007). The Status of various approval accorded by
Government of India is given in below Table no.2
Table No.2: SEZs in Gujarat as on 30-9-2007

(Source: Industries of Gujarat-statistical information, Govt. of Gujarat (2007),

16
As the largest producer of natural gas in India, Gujarat intends to set up
an extensive state-wide gas grid to augment its existing power capacity
(which is shown in Fig. no: 4). In fact, by 2010, 20 % of the country's
energy needs will be met by natural gas and Gujarat would play a crucial
role in fulfilling these requirements.

As per provisional estimates, the production of agate, steatite and

gypsum during the year 2006-07 was 38, 1105 and 156 tonnes
respectively. The production of limestone, lignite, bauxite, laterite and
dolomite were 22482, 9810, 3214, 262 and 325 thousand tones
respectively. The production of clay, china clay, bentonite, quartz, silica
sand and chalk were 5582, 492, 896, 223, 961 and 199 thousand tonnes
respectively. The production of crude oil and natural gas was 6212
thousand tonnes and 3294 million cubic meters respectively during the
year 2006-07.

Fig. no: 4 State Wide Gas – Grid Project in Gujarat

17
The Sardar Sarovar project will provide assured irrigation to 1.8 million
hectares in Gujarat with water for domestic and industrial use in about
8,215 villages and 135 townships.

The state has undertaken extensive canal construction to supply water to

the arid regions of Kutch. Also underway is Kalpasar, a multipurpose
project that aims to build a dam across the Gulf of Khambhat with a tidal
reservoir of 872 sq km.

Gujarat has 11 airports under the operational jurisdiction of Airports

Authority of India (AAI) with one International airport at Ahmedabad
and other domestic airports located at Vadodara, Surat, Jamnagar, Rajkot,
Bhavnagar, Porbandar, Bhuj, Keshod, and Deesa airports. Gujarat also
has a road network spanning across 74,000 km. It is also well connected
by rail with 5,310 km of rail lines.

KEY SECTORS OF THE STATE

18
 1. Chemical Sector:
Gujarat is known as the “Petro-capital” of the country. Gujarat’s
chemicals and petrochemicals sector is one of the fastest growing sectors
in the state’s economy. The chemical industries in Gujarat significant
component of the state economy, contributing to more than 51% of the
Indian production of major chemicals with resources of approximately
more than INR 12,000 crores.

Petrochemical industries in Gujarat produces 13,048 (‘000 tones) of

petrochemical production and also contributes around 62% at total
production of country. Gujarat’s contributes 15% of the total national
chemical export.

With three crackers complexes, Gujarat has a total capacity of 1180 KTA.
For the chemical sector state has 8 product clusters, 4 dedicated SEZs
and 14 industrial parks. The major contributor in these sectors are
Reliance, Tata chemicals, Essar Global, Indian Oil Corporation, ONGC,
Cheminova, Huber chemical, Bayer crop science Ltd etc.

2. Drugs and Pharmaceuticals :

Gujarat has about 3,267 registered pharmaceutical industrial units

involving a capital investment of about US$ 1.6 billion. Most of these are
small and medium enterprises.

The state's pharmaceutical industry contributes 42% to the total turn over
of the India and contributes 22% of India’s pharmaceutical’s export.

19
Gujarat is home to large pharmaceutical units belonging to Sarabhai
Chemicals, Cadila, Torrent, Symbiotics, Cynamide India, Aventis, Abbott
Lab, Atul Ltd, Rallis, among others.

3. Textiles :

The textiles sector is critical to the state's economic growth as it

contributes 23 % to the state's GSDP. Gujarat's fabric process houses are
concentrated in Ahemdabad and Surat.

Gujarat is the largest producer (35%) and exporter (60%) of Cotton in

India. In the production of Denim, Gujarat is the third largest producer in
the world and largest in India with 65-70% of total nation’s production.
Gujarat has the largest number of multi head embroidery machinery
(40,000) in the world. In the manufacturing of power loom machinery
Gujarat contributes 95% of India.

The state accounts for 12% of the total textile exports from the country. It
produces about 30% of woven fabric in the country and Surat alone
produces over 40% of the country's art silk fabric.

A large number of garment and garment processing units have developed

in urban areas. Some of the key textile manufacturers in the state are
Arvind Mills, Mafatlal and Digjam, Ashima group, Raymond, Reliance
etc.

4. Agriculture and Food processing :

Gujarat is keen to promote the agro-processing industry, which currently

consists of small and medium enterprises producing a wide variety of
20
products. It has about 16,400 small enterprises in food processing,
beverage and tobacco processing.

Gujarat is well known for its success in dairy cooperatives. Amul, a

brand owned by the Gujarat Cooperative Milk Marketing Federation,
enjoys a significant market share in the processed foods sector.

Gujarat is the largest producer of Castor, Cumin & Ishabgul in the world
and largest producer of Cotton and second largest in production of
Groundnut in India.

The state is actively encouraging the production of derivatives based on

castor seeds and psyllium husk. The agro-processing sector also accounts
for a significant proportion of the working population in the state.

The major contributors in food processing industries are Adani, Amul,

Vadilal, Vimal oil, Parle, Godrej, Rasna etc.

5. Gems and Jewellery :

The gems and jewellery sector is one of the Gujarat’s flourishing
industries which focuses on constant innovation in jewellery design to
supply to the requirement of the international business community.

Surat is the ‘Diamond polishing hub of India’ and the world, and is
popular referred as the ‘silky city sparkling with diamond’. Rajkot
district is internationally known for its unique hand made gold and silver
ornaments which constitute 85% of the total jewellery production in
India.

Gujarat accounts for 72% of the world’s share of processed diamond and
80% of total diamond processed in India. Almost 8 out of 10 diamonds in
21
the world today are processed in Gujarat. 9 major clusters and 2 SEZs
(Surat) are developed in the state.

6. Engineering and Automobiles :

Gujarat contributes to over 8% of India’s total engineering output, and is

home to several industrial units with operations across the entire value
engineering chain. There are over 300 units in large sector and over
75,000 units in small and medium enterprises (SMEs) sector operation in
the state.

It is a major production base for sponge iron, steel pipes and tubes,
copper cathode, electrical switch gear, transformer and transmission line
towers, heavy fabrication, ship building and auto components.

Hindalco’s copper smelting and refining complex at Dahej is the world’s

largest copper smelter at a single location with a capacity of 5,00,000
tones a year. The Essar steel complex at Hazira is the world’s largest gas
based single location sponge iron plant, with a capacity of 5.1 MTPA.
Brass parts cluster in Jamnagar, which has over 5,000 small units meets
70% of requirements for brass parts of India.

In the Gujarat total 30 product clusters, 9 dedicated SEZs and 14

industrial parks located in different places. The major industries in this
sector are Essar steel, Welpsum, Shah Alloys, Hindalco, Electrotherm,
Elecon, Hitachi, Videocon, ABB, Larsen & Turbo etc.

7. Oil & Gas :

22
Gujarat ranks first in the production of crude oil (onshore 54.8%) and
Natural gas (onshore 35.5%) in India. Gujarat is the only state in India
with a state wide gas grid and multi gas suppliers. The State has the
potential to become national hub for gas due to proximity to Middle East
gas sources and attractive northern market. The natural gas produced in
the western offshore fields in India is partly brought to Hazira (Gujarat),
where it is sweetened and partly utilised in Hazira itself, while the
remaining is fed into the Hazira-Bijapur-Jagdishpur pipeline, which
passes through Gujarat, Madhya Pradesh, Rajasthan, UP, Delhi,and
Haryana. Vaghodi, is one of the major natural gas extraction regions in
India.

There are 80 CNG stations in Gujarat set up by Gujarat Gas Corporation

Limited (GGCL), Adani Group and Gujarat State Petroleum Corporation
(GSPC). The only state having an extensive transmission network,
almost 1200 km of gas grid is in operation and around 800 km is under
construction and an expansion of around 200 km is planned.

GSPC is India’s only State Government owned company in the oil and
gas exploration and production business. A petroleum university has been
established near Gandhinagar in collaboration with Gujarat Energy
Research & Management Institute (GERMI) and GSPC.

The State has the highest number of oil and gas fields (onshore and
offshore) in India (32.2%). 35% of India’s installed refining capacity is in
the State of Gujarat, which is the highest in India. Reliance Petroleum
limited at Jamnagar (Gujarat) is the largest refinery in India and the
biggest grass root refinery in the world. Gujarat is the only state having
two LNG Terminals located at Dahej and Hazira.
23
Major contributors in this sector are Adani Group, British Gas, Cairn
Energy, Essar Oil, Hazira LNG & Port Compnay, GSPC, Indian Oil
Corporation Ltd.,ONGC, Petronet LNG Limited, Reliance, Industries
Limited, Shell etc.

8. Service Sector :

The service sector consist of the soft parts of the economy such as
insurance, government, tourism, banking, retail, education, cooperatives,
and social services.

Service sector in Gujarat is growing at a highest growth rate of 15.99%

among the other sector. Services contributed 44% of GSDP in 2007-08
compared with 41.45% based on the earlier 2006-07. This growth of the
service sector has been augmented by increasing industrial activity.

The total employment in private sector has increased to 0.944 million at

the end June 2006 to 1.00 million at the end of the June 2007.

BUSINESS OPPORTUNITIES

Several factors contribute to making a state an attractive investment

destination. Major factors impacting evolution of industry in Gujarat are:

1. Proactive policies:

The policy the State Government adopts towards a sector directly affects
investment. For instance, the investment in infrastructure can be related
to the government policy seeking private investment.

2. Availability of natural resources:

24
Certain industries like petrochemicals have a high dependence on
availability of natural resources. The recent discoveries of gas reserves
have provided a fillip to the industries in the state.

3. Capability:

The gems and jewellery industry in Gujarat relies on the skilled

manpower available in the state. The state is a leader in terms of labour
productivity. This has been a major factor enabling the success of
Gujarat in sectors like engineering, petrochemicals and gems and
jewellery.

Based on an assessment of the above factors, some of the industries with

potential for investment and growth in Gujarat are depicted in the
following graph.

Fig. no: 5 Industries with potential for investment

Source: Industrial survey of Gujarat (2007) (KPMG analysis)
25
This is a qualitative assessment to highlight relative attractiveness of
different sectors. A case by case analysis is necessary before investment
decisions are made.

CONTIBUTION OF GUJARAT TO THE NATION

26
 Fig. no: 6 Contribution of Gujarat to the nation

(Source: Gujarat the Growth Machine of India, VGGIS (2009), Ahemdabad)

FUTURE INVESTMENT
27
Industry in Gujarat has evolved and traversed through cluster, industrial
park, industrial estate, SEZs and has now reached Investment Regions
(IRs) and Special Investment Regions (SIRs).

SIRs would provide to the scale and seek infrastructure arrangement

currently in vague internationally. SIRs on a scale of 200 to 400+ sq.
Kms would be products of Planned Decentralise development with
convergence of industrial, social and urban infrastructure that are global
benchmarked, conducive to attracting business internationally and
supportive of the RURBAN GUJARAT.

SIRs/IRs synergise not only with opportunity thrown up by the Delhi

Mumbai Investment Corridor (DMIC) but also with the scale and quality
of investment attracted by the Vibrant Gujarat Global Investor’s summits
(VGGISs).

The care infrastructure project like Metro line, logistic, Railway lines,
Express ways, Fast passenger trains, High speed trains and such other
category of project as decided by the government involving minimum
investment of Rs. 5000 crores.

In the last month January 12th - 13th the forth Vibrant Gujarat Summit
meets in Science city, Ahemdabad. This meet has been different from the
previous three which held in 2003, 2005 and 2007. This was the first
time the event had a partner country. Japan which had the biggest
delegation among the thirty countries represented this year. Total 8524
MoUs signed in the different sectors worth Rs. 1,21,900 crores and sector
wise MoUs given in below Table no: 3

Table no: 3 Sector vice MoUs signed in 2009

28
Sr. Investment
No. Sector (Rs. crores) MoUs

1 Power 2,14,000 29
2 Urban Development 1,20,000 257
3 Renewable Energy 1,13,000 66
4 SIR 1,00,000 3
5 Ports 85,700 20
6 SEZ 66,500 14
7 Financial Sector 61,500 8
8 Chemicals 57,000 44
9 Tourism 55,000 115
10 Minerals 50,500 30
11 IT 43,500 20
12 Oil & Gas 43,000 16
13 Engineering 40,000 92
14 PCPIR 38,000 137
15 Food/Agri 28,700 205
16 Roads 20,500 5
17 Social 16,500 111
18 Infrastructure 12,000 14
19 Gems & Jewellery 9,000 10
20 Textile 8,500 42
21 SMEs 7,000 7204
22 Environment 5,700 9
23 Pharma 3,000 30
24 Biotech 2,500 30
25 Industrial Parks 800 13
TOTAL 12,01,900 8524

(Source: Gujarat the Growth Machine of India, VGGIS (2009), Ahemdabad)

CONCLUSION
29
Gujarat plays an important role in Indian Economy. Gujarat’s GSDP is
increasing day by day rapidly. Gujarat share 14% of total export of India.

The discovery of gas reserves in the state has presented Gujarat with a
wide array of business opportunities for entrepreneurs. There for many
international investors, multinational companies invest their money in
Gujarat.

State has very good facilities for transportation like road, railway, air and
port facilities. State has also full facilities for electricity, power and
water.

The state offers investors a distinct advantage in terms of quality

manpower and infrastructure facilities such as power and water supply,
ports and now a gas grid.

This is encouraging multinationals and leading Indian companies to turn

their manufacturing plants in the state into global sourcing bases. Many
industrialists have signed MoUs to invest their money for the industries
or for business in Gujarat during the summit 2009 at Science city,
Ahmadabad.

SUGGESTION

30
Gujarat has play vary important role in the different sectors like
Chemical, Pharmaceutical, Power, Oil and Gas, Engineering tools, Ports,
SEZ etc. But in other sectors like Agricultural and Food processing
industries, IT, Biotechnology, Automobile are those sector which require
many improvement at various factor and Government will try to focus on
this factor.

Gujarat contributes major role in some crop production, but the

productivity is less compare to the other state. To increase productivity
farmer should have applied new technology for the agricultural process
like Panjab.

Gujarat state’s literacy rate is more than India’s literacy rate even though
Gujarat have required to increase their literacy rate and make Gujarat at
the first rank among other state.

REFFERENCES
31
Anonymous (2007). Industries in Gujarat, Statistical Information,
Government of Gujarat.

Anonymous (2007). Social Economy Survey of the State, Government of

India.

Anonymous (2009). Gujarat the Growth Engine of India, Vibrant Gujarat

Global Investor’s Summits (2009), Science city, Ahemdabad.

Web Sites:

www.ibet.com

www.ic.gujarat.gov.in

www.indextb.com

www.vibrantgujarat.com

32