Diplomatist Magazine Diplomatist January 2019 | Page 23

IN FOCUS
T
he state of Gujarat is riding high on
its industrial success especially post
liberalisation owing to its pragmatic
policies and political leadership.
The gems and jewellery, pharmaceuticals,
textiles, and chemicals have played a key role
in the development of the industrial sector of the
state providing large employment to the endemic
population and the migrants from far off states
such as Uttar Pradesh and Bihar.
The diamond industry is a thriving business in
Gujarat which accounts for 72 percent of the total
production of processed diamonds in the world.
Moreover, Gujarat is the third largest producer
of denim in the world.
The petroleum industry plays a dominant role
in the economy of the state which has four large
refi ning capacities set up by private and public
sector companies. As of July 2018, Gujarat had
four refi neries with a combined capacity of 101.9
MMTPA.
The state of Gujarat provides a conducive
environment for investment and progress of
the industries due to its robust infrastructure
consisting of 42 ports, 18 domestic airports, and
one international airport.
The strategic location of Gujarat has also
played a crucial role in ensuring the fast progress
of the industry in Gujarat which is also the sixth
largest state.
Understanding the need for creating Special
Economic Zones to boost the industry, 74 SEZs
have been created. Between the periods of April
2000 – June 2018, Gujarat received Foreign
Direct Investment worth $19.16 billion indicating
a favourable condition for the promotion of the
industries in the state. Gujarat accounted for
about 5 percent share in the overall FDI infl ows
in India.
The Gujarat based companies are expected to
attract huge investment after the completion of
the $90 billion Delhi-Mumbai Industrial Corridor
(DMIC).
Interesting Points
Gross State Domestic Rs 11.62 trillion
Product in 2016-17
(USD 173.24 billion)
Average GSDP
growth rate from
2011-2017 13.55 percent
Total installed power
generation capacity
by August 2018 30,874.70 MW
The state is way ahead in the production
of soda ash, salt, and chemicals contributing
nearly 91 percent, 66 percent, and 35 percent
respectively to India’s total output.
Ahmadabad, Valsad, Ankleshwar, Vapi,
Rajkot, Surat, Khambat are some of the key
industrial hubs of Gujarat.
The various economic policies have given
impetus to the industries in Gujarat in the form
of incentives to the Micro, Small and Medium
Enterprises, providing subvention interest plans
and rebates and exemption in the stamp duty and
registration fees for starting an industrial unit.
Further, the state has taken initiatives to
simplify the tax payment for industry apart
from making the easy availability of land for the
manufacturing units.
The state is successfully moving from
the traditional areas of manufacturing in the
electrical engineering, textiles, vegetable oils,
chemicals and soda ash to producing fertilizers
and petrochemicals.
Apart from manufacturing other economic
activities including mining of calcite, gypsum,
manganese, lignite, bauxite, limestone, agate,
feldspar and quartz sand contributes signifi cantly
to the economy.
The high yield of cotton, peanuts, dates,
sugarcane, and petrol ensures cornucopias supply
of raw material to the industry.
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 1 • January 2019, Noida • 23