The economy of

Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...

, a state in Western India, has significant

agricultural Agriculture or farming is the practice of cultivating Plant, plants and livestock. Agriculture was the key development in the rise of Sedentism, sedentary human civilization, whereby farming of Domestication, domesticated species created food ...

as well as

industrial Industrial may refer to: Industry * Industrial archaeology, the study of the history of the industry * Industrial engineering, engineering dealing with the optimization of complex industrial processes or systems * Industrial city, a city dominate ...

production within India. Major agricultural produce of the state includes

cotton Cotton is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus ''Gossypium'' in the mallow family Malvaceae. The fiber is almost pure cellulose, and can contain minor perce ...

groundnut Groundnut may refer to: * Seeds that ripen underground, of the following plants, all in the Faboideae subfamily of the legumes: ** '' Best Basketball Player'', Obinna Udunni ** '' Arachis villosulicarpa'', a perennial peanut species ** ''Vigna sub ...

s (peanuts),

dates Date or dates may refer to: *Date (fruit), the fruit of the date palm (''Phoenix dactylifera'') Social activity *Dating, a form of courtship involving social activity, with the aim of assessing a potential partner **Group dating * Play date, a ...

sugar cane Sugarcane or sugar cane is a species of (often hybrid) tall, perennial grass (in the genus ''Saccharum'', tribe Andropogoneae) that is used for sugar production. The plants are 2–6 m (6–20 ft) tall with stout, jointed, fibrous stalks t ...

milk Milk is a white liquid food produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals (including breastfed human infants) before they are able to digestion, digest solid food. Immune factors and immune ...

and milk products. Gujarat is one of the most industrialised states, with significant presence in pharma, chemicals, refining and petrochemicals, ceramics, textiles, automobile etc. sectors. Gujarat recorded the lowest unemployment rate in India in 2015, with 1.2% of the labour force being unemployed. Gujarat is ranked number one in the

pharmaceutical industry in India The pharmaceutical industry in India was valued at an estimated US$42 billion in 2021. India is the world's largest provider of generic medicines by volume, with a 20% share of total global pharmaceutical exports. It is also the largest vaccine ...

, with a 33% share in drug manufacturing and 28% share in drug exports. The state has 130 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. Gujarat has the longest coastline in India (), and its ports (both private and public sector) handle around 40% of India's ocean cargo, with

Mundra Port Mundra Port is the largest private port of India located on the north shores of the Gulf of Kutch near Mundra, Kutch district, Gujarat. Formerly operated by Mundra Port and Special Economic Zone Limited (MPSEZ) owned by Adani Group, it was late ...

located in

Gulf of Kutch The Gulf of Kutch is located between the peninsula regions of Kutch and Saurashtra, bounded in the state of Gujarat that borders Pakistan. It opens towards the Arabian Sea facing the Osman Gulf. It is about 50 km wide at the entrance bef ...

being the largest port of India by cargo handled (144 million tons) due to its favorable location on the westernmost part of India and closeness to global shipping lanes. Gujarat also contributes around 20% share in India's industrial production and merchandise exports.

Contribution

The world's largest

ship breaking Ship-breaking (also known as ship recycling, ship demolition, ship dismantling, or ship cracking) is a type of ship disposal involving the breaking up of ships for either a source of parts, which can be sold for re-use, or for the extraction ...

yard is in Gujarat near

Bhavnagar Bhavnagar is a city in the Bhavnagar district of the Saurashtra region of Gujarat, a States of India, state of India. It was founded in 1723 by Gohil Koli, Bhavsinhji Takhtasinhji Gohil (1703–1764). It was the capital of Bhavnagar State, whi ...

Alang Alang is a census town in Bhavnagar district in the Indian state of Gujarat. Because it is home to the Alang Ship Breaking Yard, Alang beaches are considered the world's largest ship graveyard. Demographics As of the 2001 Indian census, Alan ...

Reliance Petroleum Reliance Petroleum is an Indian petroleum company that specializes in oil and energy, owned by Mukesh Ambani of Reliance Industries Limited (RIL), one of India's largest private sector companies. It is based in Ahmedabad, Gujarat, India and has ...

, one of the group companies of

Reliance Industries Limited Reliance Industries Limited is an Indian multinational conglomerate company, headquartered in Mumbai. It has diverse businesses including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. Reliance is o ...

founded by

Dhirubhai Ambani Dhirajlal Hirachand Ambani (28 December 1932 – 6 July 2002), popularly known as Dhirubhai Ambani, was an Indian business tycoon who founded Reliance Industries. Ambani took Reliance public in 1977 and was worth US$2.9 billion in 2002 upon hi ...

operates the oil refinery at Jamnagar which is the world's largest grass roots refinery. The company has also planned another SEZ (

special economic zone A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...

), in

Jamnagar Jamnagar () is a city located on the western coast of India in the state of Gujarat of Saurashtra (region), Saurashtra region. It is the administrative headquarters of the Jamnagar district and the fifth largest city in Gujarat. The city lies ...

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

Data

Sectors

Industrial

One of India's most industrialized states, Gujarat maintains a variety of industries, the principal ones being general and

electrical engineering Electrical engineering is an engineering discipline concerned with the study, design, and application of equipment, devices, and systems which use electricity, electronics, and electromagnetism. It emerged as an identifiable occupation in the l ...

and the manufacture of

textiles Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...

vegetable oil Vegetable oils, or vegetable fats, are oils extracted from seeds or from other parts of fruits. Like animal fats, vegetable fats are ''mixtures'' of triglycerides. Soybean oil, grape seed oil, and cocoa butter are examples of seed oils, or fat ...

s, chemicals,

soda ash Sodium carbonate, , (also known as washing soda, soda ash and soda crystals) is the inorganic compound with the formula Na2CO3 and its various hydrates. All forms are white, odourless, water-soluble salts that yield moderately alkaline solutions ...

, and cement. New industries include the production of

fertilizer A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...

s and

petrochemicals Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sou ...

. Major resources produced by the state include cotton, peanuts, dates, sugarcane, and petrol. The state is rich in

calcite Calcite is a Carbonate minerals, carbonate mineral and the most stable Polymorphism (materials science), polymorph of calcium carbonate (CaCO3). It is a very common mineral, particularly as a component of limestone. Calcite defines hardness 3 on ...

gypsum Gypsum is a soft sulfate mineral composed of calcium sulfate dihydrate, with the chemical formula . It is widely mined and is used as a fertilizer and as the main constituent in many forms of plaster, blackboard or sidewalk chalk, and drywall. ...

manganese Manganese is a chemical element with the symbol Mn and atomic number 25. It is a hard, brittle, silvery metal, often found in minerals in combination with iron. Manganese is a transition metal with a multifaceted array of industrial alloy use ...

lignite Lignite, often referred to as brown coal, is a soft, brown, combustible, sedimentary rock formed from naturally compressed peat. It has a carbon content around 25–35%, and is considered the lowest rank of coal due to its relatively low heat ...

bauxite Bauxite is a sedimentary rock with a relatively high aluminium content. It is the world's main source of aluminium and gallium. Bauxite consists mostly of the aluminium minerals gibbsite (Al(OH)3), boehmite (γ-AlO(OH)) and diaspore (α-AlO(O ...

, 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. In recent years, Gujarat has gained a prominent place in India's automobile industry, with several automobile plants being set up in the state -

Suzuki Motor Gujarat Suzuki Motor Gujarat Private Limited (SMGPL) is an automotive manufacturing plant owned by Suzuki Motor Corporation. Located in Hansalpur Becharaji village of Mandal Taluka in Ahmedabad District, it is the first and the only Suzuki automobile ...

in Hansalpur near Ahmedabad,

Tata Motors Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in Mumbai, India, which is part of the Tata Group. The company produces passenger cars, trucks, vans, coaches, buses. Formerly known as Tata En ...

and

Ford India Ford India Private Limited was a subsidiary of Ford Motor Company for its operations in India. Ford India Private Limited's headquarter is located in Sholinganallur, Chennai, Tamil Nadu. Ford also has integrated manufacturing facilities in Sana ...

Sanand Sanand is a city and a municipality in Ahmedabad district in the Indian state of Gujarat. It is a major industrial hub of Western India, host to manufacturing plants of multiple domestic and foreign companies like Tata Motors, Nivea, Nestlé Ind ...

MG Motor MG Motor UK Limited (MG Motor) is an automotive company owned by SAIC Motor UK, headquartered in London, owned by the Shanghai-based Chinese state-owned automaker SAIC Motor. MG Motor designs, develops and markets cars sold under the MG marq ...

Hero Motocorp Hero MotoCorp Limited (formerly Hero Honda) is an Indian multinational motorcycle and scooter manufacturer headquartered in New Delhi. The company is one of the largest two-wheeler manufacturers in the world, as well as in India, where it has ...

, JCB in

Halol Halol is a city and a municipality (tehsil) in Panchmahal district in the Indian state of Gujarat. Located in western India, it has an average elevation of 499 metres (1637 feet). Halol is a major manufacturing hub of Western India, ...

, Honda Motors and Scooters India in Vithalapur, etc. It is one of India's most prosperous states, having a per-capita GDP significantly above India's average. Kalol Khambat and

Ankleshwar Ankleshwar (sometimes written Ankaleshwar) is a city and a municipality in Bharuch district in the state of Gujarat, India. The city is located 14 kilometres from Bharuch. Ankleshwar Industrial Association (AIA) is the largest organisation of ...

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 The Gulf of Khambhat, historically known as the Gulf of Cambay, is a bay on the Arabian Sea coast of India, bordering the state of Gujarat just north of Mumbai and Diu Island. The Gulf of Khambhat is about long, about wide in the north and up ...

, 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.

Agriculture

Gujarat is the largest producer of major

cash crop A cash crop or profit crop is an Agriculture, agricultural crop which is grown to sell for profit. It is typically purchased by parties separate from a farm. The term is used to differentiate marketed crops from staple crop (or "subsistence crop") ...

tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...

cumin Cumin ( or , or Article title
) (''Cuminum cyminum'') is a

sesamum ''Sesamum'' is a leguminous crop and genus of about 20 species in the flowering plant family Pedaliaceae. The plants are annual or perennial herbs with edible seeds. The best-known member of the genus is sesame, ''Sesamum indicum'' (syn. ''Ses ...

, etc. 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 Rural economics is the study of rural economies. Rural economies include both agricultural and non-agricultural industries, so rural economics has broader concerns than agricultural economics which focus more on food systems. Rural developmen ...

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 Anand Milk Union Limited (AMUL) is an Indian dairy state government cooperative society, based in Anand, Gujarat. Formed in 1946, it is a cooperative brand managed by Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today i ...

milk co-operative federation products are well known all over India and is Asia's biggest dairy. 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

Gujarat has been witnessing increasing investment both from Indian and foreign companies in recent times on account of its pro-business policies and this has augmented well for the engineering industry in Gujarat, which contributes to about 10% of the country’s total engineering output. The automotive sector in Gujarat is still at a relatively nascent stage, and contributes to about 5% of the country’s total automotive output.important players in the region include

Asia Motor Works Asia Motor Works Ltd (AMW) is an Indian automotive company that manufactures commercial vehicles, auto components, fully built vehicles and forged components. Founded in 2002, AMW has won Commercial Vehicle (CV) of the year 2008 from NDTV Pro ...

Atul Auto Atul Auto Limited is an Indian three wheeler (auto rickshaw, tuk-tuk, e-rickshaw) manufacturing company based in Rajkot. The company's origins lie in the 1970s, when Jagjivanbhai Chandra sought to modify motorcycles to make transport to meet the ...

, Munjal Auto India Ltd. and Electrotherm. Rajkot district is the largest cluster for the production of auto components and diesel engines in the state. Gujarat has offered several incentives to

Suzuki Motors is a Japanese multinational corporation headquartered in Minami-ku, Hamamatsu, Japan. Suzuki manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs and a variety of other small internal com ...

to set up an export-oriented unit for production and export of its popular models including the A-Star. The state would assist the company in setting up railway links from its production unit to

. After

relocated the Nano manufacturing plant to

, a small town near Ahmedabad, Gujarat has emerged as a car manufacturing hub. Major multinational automobile companies like

Suzuki Motor is a Japanese multinational corporation headquartered in Minami-ku, Hamamatsu, Japan. Suzuki manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs and a variety of other small internal co ...

Honda is a Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment, headquartered in Minato, Tokyo, Japan. Honda has been the world's largest motorcycle manufacturer since 1959, reaching a product ...

and

Hero MotoCorp Hero MotoCorp Limited (formerly Hero Honda) is an Indian multinational motorcycle and scooter manufacturer headquartered in New Delhi. The company is one of the largest two-wheeler manufacturers in the world, as well as in India, where it has ...

have plants in operation in Gujarat. Gujarat also leads in upcoming hybrid and electric vehicle manufacturing facilities.

Suzuki is a Japan, Japanese multinational corporation headquartered in Minami-ku, Hamamatsu, Japan. Suzuki manufactures automobiles, motorcycles, All-terrain vehicle, all-terrain vehicles (ATVs), outboard motor, outboard marine engines, wheelchairs ...

, in partnership with Denso and

Toshiba , commonly known as Toshiba and stylized as TOSHIBA, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. Its diversified products and services include power, industrial and social infrastructure system ...

, is building a lithium ion battery manufacturing facility at a cost of 1700 crore.

is planning to launch electric cars as well as electric bikes by 2020. The India-based

JSW Group JSW Group is an Indian multinational conglomerate, based in Mumbai. It is led by Sajjan Jindal and part of the O.P. Jindal Group. The Group's diverse businesses include steel, energy, infrastructure, cement and paints, across India, the Unite ...

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.

s, a subsidiary of China's largest automobile company

SAIC Motor SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the " Big Four" state-owned car manu ...

s, has bought

General Motors The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...

' manufacturing facility in

, Gujarat, and is planning to start production by 2019. Tata Motors is also planning to produce electric cars from its Sanand plant.

Banking and finance

Gujarat has one of the best banking networks in the country and the banking business in the state is well supported by the thriving trade, commerce and industries. The country’s first international financial services centre (IFSC) at Gujarat International Finance-Tec City (

GIFT City Gujarat International Finance Tec-City (GIFT City) is central business district under-construction in Gandhinagar and Ahmedabad in Gandhinagar district in Gujarat, India. It is India's first operational greenfield smart city and international ...

) in Gandhinagar, when American multinational IBM inaugurated the IBM Software Labs at GIFT-IFSC. Conceptualized a decade and half ago as an IFSC, the pace of growth, participation and investment at GIFT City has seen unprecedented growth in the past three years. Institutions such as Bank of America,Standard Chartered Bank, Hongkong & Shanghai Bank Corporation Ltd, Citibank NA, Barclays Bank, Deutsche Bank, and JPMorgan Chase Bank National Association have set up IFSC Banking Units (IBUs) in GIFT city,Gujarat.By January 2021, the total banking transactions already reached $51 billion at GIFT IFSC. With GIFT City offering opportunities to foreign banks to book India-linked offshore businesses, more players are setting foot in Gujarat. The following are the list of Banks based in Gujarat.

Pharmaceuticals and Chemicals

Gujarat is ranked number one in the

Oil and Gas

Gujarat is India's 'Oil Capital'. Gujarat accounts for 54% of India's onshore

crude oil Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crude ...

and 39% of onshore

natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...

production. It accounts for approximately 46% of India's installed refining capacity and 60% of India's total crude oil import facilities. The government has announced his US$4.5 billion prospectus and his US$5.7 billion investment in Gujarat. Gujarat has a well-developed gas network of 550 km and with an investment worth US$500 million he plans to expand it to 2,200 km. Investments have been proposed and are underway to build new LNG terminals, in addition to the existing terminals at

Dahej Dahej is a cargo port situated on the South-west coast of Gujarat, India in Bharuch district. There is 17.5 million tonnes per year capacity LNG terminal operated by Petronet in Dahej. Port Information General The Port of Dahej is located in t ...

and

Hazira Hazira is a suburb and a transshipment port in the Surat City in the Gujarat state of India. It is the west most end of Surat. Hazira is one of the major ports of India and the most important element of Surat Metropolitan Region. The town is ...

. The state offers great opportunities across the energy value chain. Progressive and investor-friendly industrial policies, including tax rationalization, energy reforms and the development of special economic zones, coupled with logistical proximity to Middle East gas resources, are one of the key growth drivers for the sector. The presence of cooperatives such as IIFCO,

KRIBHCO Krishak Bharati Cooperative Limited (KRIBHCO) is a Central government cooperative under the ownership of Ministry of Cooperation, Government of India that manufactures fertilizers, mainly urea. The society was set up by the Government of India ...

, energy companies such as NTPC and GEB, and large industrial companies such as Reliance have created a vibrant energy sector in Gujarat. The

Jamnagar refinery The Jamnagar Refinery is the private sector crude oil refinery owned by Reliance Industries in Jamnagar, Gujarat, India. The refinery was commissioned on 14 July 1999 with an installed capacity of . Its current installed capacity is . It is cur ...

is India's largest in terms of refining capacity and is also considered the largest grassroots refinery in the world.Gujarat has oil & gas reserves located at

Mehsana Mehsana (), also spelled Mahesana, is a city and municipality in Mehsana district, in the Indian state of Gujarat. Established in 14th century, the city was under Gaekwads of Baroda State from 18th century to the independence of India in 1947 ...

, Tapti High,

Bharuch Bharuch (), formerly known as Broach, is a city at the mouth of the river Narmada in Gujarat in western India. Bharuch is the administrative headquarters of Bharuch District. The city of Bharuch and surroundings have been settled since tim ...

, Gandhar,

, Jambussar,

Palej Palej is a census town in the Bharuch district, Gujarat, India. Cotton is a major product of the industrial area surrounding the town. Palej supports the daily needs of many small nearby villages. History Palej acts as a central hub for many ...

, Kalol and isolated gas fields around Ahmadabad. In addition to this, it has discovered oil reserves in

Dholka Dholka is a city and municipality in the Ahmedabad District of the Indian state of Gujarat. It is the headquarters of Dholka Taluka, and is 48 km by road via National Highway 8A southwest of the city of Ahmedabad. Dholka has an average ...

and

Khambat Khambhat (, ), also known as Cambay, is a city and the surrounding urban agglomeration in Anand district in the Indian state of Gujarat. It was once an important trading center, but its harbour gradually silted up, and the maritime trade moved ...

Foundry

India has about 5000

foundries A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal into a mold, and removing the mold material after the metal has solidified as it cools. The most common metals pr ...

and is the fourth largest producer of

castings In metalworking and jewelry making, casting is a process in which a liquid metal is delivered into a Mold (manufacturing), mold (usually by a crucible) that contains a negative impression (i.e., a three-dimensional negative image) of the intende ...

in the world, with an annual output of over 7.5 million tons. Indian foundries regularly meet the demands and expectations of the global market and currently export about 300,000 tons annually. Many Indian foundries have adopted the state-of-the-art technology, in all areas of manufacturing.India has a stable domestic demand, which has helped the foundries survive the recent global economic downturn.India remains a high growth region for small cars, tractors and two wheelers. The annual production of cars and SUVs is already above one million mark. The industrial growth has been impressive at 5-6 %, in spite of the recessionary trends. Of the many

foundry A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal into a mold, and removing the mold material after the metal has solidified as it cools. The most common metals pr ...

centres in India, Gujarat has two leading clusters –

Ahmedabad Ahmedabad ( ; Gujarati: Amdavad ) is the most populous city in the Indian state of Gujarat. It is the administrative headquarters of the Ahmedabad district and the seat of the Gujarat High Court. Ahmedabad's population of 5,570,585 (per t ...

and

Rajkot Rajkot () is the fourth-largest city in the Indian state of Gujarat after Ahmedabad, Vadodara, and Surat, and is in the centre of the Saurashtra region of Gujarat. Rajkot is the 35th-largest metropolitan area in India, with a population of ...

, each producing more than 40,000 tons/year. Ahmedabad has a number of small and medium size foundries, producing a variety of

Grey Iron Grey (more common in British English) or gray (more common in American English) is an intermediate color between black and white. It is a neutral or achromatic color, meaning literally that it is "without color", because it can be composed o ...

, S.G. Iron,

Steel Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...

and also

Aluminum alloys An aluminium alloy (or aluminum alloy; see spelling differences) is an alloy in which aluminium (Al) is the predominant metal. The typical alloying elements are copper, magnesium, manganese, silicon, tin, nickel and zinc. There are two principa ...

. Rajkot engineering cluster produces a range of products such as

casting Casting is a manufacturing process in which a liquid material is usually poured into a mold, which contains a hollow cavity of the desired shape, and then allowed to solidify. The solidified part is also known as a ''casting'', which is ejected ...

s, pump-sets, automobile components, diesel engine generating sets, bearings,

machine tool A machine tool is a machine for handling or machining metal or other rigid materials, usually by cutting, boring, grinding, shearing, or other forms of deformations. Machine tools employ some sort of tool that does the cutting or shaping. All m ...

s and so on. In addition, a number of miscellaneous engineering items such as

agricultural implement Agricultural machinery relates to the mechanical structures and devices used in farming or other agriculture. There are many types of such equipment, from hand tools and power tools to tractors and the countless kinds of farm implements that the ...

hydraulic jack A jack is a mechanical lifting device used to apply great forces or lift heavy loads. A mechanical jack employs a screw thread for lifting heavy equipment. A hydraulic jack uses hydraulic power. The most common form is a car jack, floor jack o ...

air compressor An air compressor is a pneumatic device that converts power (using an electric motor, diesel or gasoline engine, etc.) into potential energy stored in pressurized air (i.e., compressed air). By one of several methods, an air compressor forces ...

fastener A fastener (US English) or fastening (UK English) is a hardware device that mechanically joins or affixes two or more objects together. In general, fasteners are used to create non-permanent joints; that is, joints that can be removed or disman ...

s and sobon are also manufactured in the cluster.The presence of Rajkot Engineering cluster in different engineering segments.

Foreign Trade

In fiscal year 2021-22, Gujarat's merchandise exports hit a record level of over ''12,700'' Crore INR (nearly $''127'' Billion) a highest in the country. The major merchandise exports from Gujarat during the year 2021 were: * *

7 of top 12 Export Districts of India are in Gujarat; Jamnagar and Surat leading the list

Regular compilation of district-wise export data has been started from April 2021. India’s top 30 districts of exports along with top 5 exported commodities during the period April–September 2021-22 and the products/services identified with export potential are given below: This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Rajya Sabha.

State government revenue and spending

Article 246 of the

Indian Constitution The Constitution of India ( IAST: ) is the supreme law of India. The document lays down the framework that demarcates fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental r ...

, distributes legislative powers including taxation, between the

Parliament of India The Parliament of India (International Alphabet of Sanskrit Transliteration, IAST: ) is the supreme legislative body of the Republic of India. It is a bicameralism, bicameral legislature composed of the president of India and two houses: the R ...

and the State Legislature. The constitution does not have provision for the central government and the States to have concurrent power of taxation. The tables below lists the thirteen taxes to be levied by the Central government and nineteen taxes by States including Gujarat.

Central government of India

State governments

Goods and Services Tax

The tax came into effect from 1 July 2017 through the implementation of the

One Hundred and First Amendment of the Constitution of India Officially known as The Constitution (One Hundred and First Amendment) Act, 2016, this amendment introduced a national Goods and Services Tax (GST) in India from 1 July 2017. It was introduced as the One Hundred and Twenty Second Amendment Bi ...

by the

Indian government The Government of India (ISO 15919, ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the Government, national government of the Republic of India, a federal democracy lo ...

. The GST replaced existing multiple taxes levied by the

central Central is an adjective usually referring to being in the center of some place or (mathematical) object. Central may also refer to: Directions and generalised locations * Central Africa, a region in the centre of Africa continent, also known as ...

and

state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...

governments. It an

indirect tax An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST), excise, consumption tax, tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the i ...

(or

consumption tax A consumption tax is a tax levied on consumption spending on goods and services. The tax base of such a tax is the money spent on Consumption (economics), consumption. Consumption taxes are usually indirect, such as a sales tax or a value-added ta ...

) used on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.

Economy of regions

Energy

Energy is an essential building block in the economic development of Gujarat . In an effort to meet the demands of rapid industrialization, the energy sector of Gujarat has undergone significant growth in past few years. Areas like resource exploration, capacity additions and sectoral reforms have been revolutionized. The energy sector can be categorized primarily in to Power, Oil & Gas respectively. The power sector includes generation, transmission and distribution of electricity. The power sector has grown considerably over the years and is able to support infrastructure development in the state. As far as oil & gas sector is concerned, the state has major contribution in areas of exploration & production, LNG terminal infrastructure, pipeline networks, refining, petro marketing and city gas distribution.

Electricity

Electricity generation for the state of Gujarat is handled by the

Gujarat State Electricity Corporation Limited Gujarat State Electricity Corporation Limited (GSECL) is a wholly owned subsidiary of the Gujarat Urja Vikas Nigam (GUVN), which came into existence in August 1993 after the unbundling of the GEB. It is a power generation company working in t ...

. The major distributors of electricity in Gujarat are Uttar Gujarat Vij Company Ltd.,

Dakshin Gujarat Vij Company Ltd. Dakshin Gujarat Vij Company Ltd. is an electricity company that was incorporated on 15 September 2003 by Gujarat Electricity Board (GEB). The Company obtained the Certificate of the Commencement of Business on 15 October 2007. The company was ...

, Paschim Gujarat Vij Company Ltd. and Madhya Gujarat Vij Company Ltd.. These institutions are subsidiaries of Guvnl with the transmission of electricity of handled by

Gujarat Energy Transmission Corporation Limited The Gujarat Energy Transmission Corporation Limited (GETCO) is an electrical power transmission company in the state of Gujarat, India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-larg ...

Installed Capacity

The total installed capacity of Gujarat is 42208

MegaWatt The watt (symbol: W) is the unit of Power (physics), power or radiant flux in the International System of Units, International System of Units (SI), equal to 1 joule per second or 1 kg⋅m2⋅s−3. It is used to quantification (science), ...

(MW). Most of the electricity in Gujarat is generated through coal. Hydropower is the second largest means of producing electricity in the state. Gujarat also has significant installed capacities of Natural Gas, Renewables and Nuclear power plants. As of 2021-22, the share of electricity generated through coal stands at 16302 MW with a percentage share of 40 percent. The share of

Hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, converting the Pot ...

is at 41 percentage with a capacity of 16588 MW. The contribution of

Natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...

stands at 16 percent with a capacity of 6587 MW. The installed capacity of

Renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...

is 2 percent with a capacity of 772 MW. Finally, 559 MW is capacitated by

Nuclear Power Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced b ...

having a share of 1 percentage.''Western Region Load Dispatch Centre Annual MIS Report 2021-22'', Western Region Load Dispatch Centre

Renewable Energy

As of March 31, 2022 the installed capacity of Renewable Energy sources of Gujarat is 13578 MW. The installed capacity of Wind energy stands at 6662 MW, Solar energy has an installed capacity of 6717 MW and other Renewable sources stand at 199 MW. The locations of major solar parks in Gujarat have been mentioned in Solar power in Gujarat page.

Nuclear Energy

Currently, the state of Gujarat has an installed Nuclear Power capacity of 559 MW. The only

Nuclear power plant A nuclear power plant (NPP) is a thermal power station in which the heat source is a nuclear reactor. As is typical of thermal power stations, heat is used to generate steam that drives a steam turbine connected to a electric generator, generato ...

in Gujarat is the

Kakrapar Atomic Power Station Kakrapar Atomic Power Station is a nuclear power station in India, which lies in the proximity of Mandvi, Surat and Tapi river in the state of Gujarat. Phase I Phase I consist two 220 MW pressurised water reactor with heavy water as mode ...

. The two existing units at the Kakrapar atomic power station feature

pressurised heavy water reactors A pressurized heavy-water reactor (PHWR) is a nuclear reactor that uses heavy water ( deuterium oxide D2O) as its coolant and neutron moderator. PHWRs frequently use natural uranium as fuel, but sometimes also use very low enriched uranium. The ...

(PHWR) of 220MW capacity each. As of May 2020, unit one of the Kakrapar atomic power station generated 30,683 million units of electricity while unit two produced 32,442 million units

Tourism

India's first world heritage city, Ahemdabad, is in Gujarat. Gujarat is the sixth largest state in India, located in the western part of India, with a coastline of (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. Gujarat offers scenic beauty from

Great Rann of Kutch The Great Rann of Kutch (or Rann of Kutch seasonal salt marsh) is a salt marsh in the Thar Desert in the Kutch District of Gujarat, India. It is about 7500 km2 (2900 sq miles) in area and is reputed to be one of the largest salt de ...

to the hills of

Saputara Saputara is a hill station located in Sahyadris or Western Ghats. Saputara town is part of Dang district in Gujarat, India. It is a tourist destination. Famous Places There are so many famous place that attract more tourist they are some ...

. It is the world's sole home of pure

Asiatic lion The Asiatic lion is a population of ''Panthera leo leo'' that today survives in the wild only in India. Since the turn of the 20th century, its range has been restricted to Gir National Park and the surrounding areas in the Indian state of Gujarat ...

s. During the Sultanate reign, Hindu craftsmanship mixed with

Islamic architecture Islamic architecture comprises the architectural styles of buildings associated with Islam. It encompasses both secular and religious styles from the early history of Islam to the present day. The Islamic world encompasses a wide geographic ar ...

, giving rise to the

Indo-Saracenic Indo-Saracenic architecture (also known as Indo-Gothic, Mughal-Gothic, Neo-Mughal, or Hindoo style) was a revivalist architectural style mostly used by British architects in India in the later 19th century, especially in public and government ...

style. Many structures in the state are built in this fashion. It is also the birthplace of

Mahatma Gandhi Mohandas Karamchand Gandhi (; ; 2 October 1869 – 30 January 1948), popularly known as Mahatma Gandhi, was an Indian lawyer, anti-colonial nationalist Quote: "... marks Gandhi as a hybrid cosmopolitan figure who transformed ... anti- ...

and

Sardar Vallabhbhai Patel Vallabhbhai Jhaverbhai Patel (; ; 31 October 1875 – 15 December 1950), commonly known as Sardar, was an Indian lawyer, influential political leader, barrister and statesman who served as the first Deputy Prime Minister and Home Minister of I ...

, the great iconic figures of India's Independence movement.

Amitabh Bachchan Amitabh Bachchan (; born as Amitabh Shrivastav; 11 October 1942) is an Indian actor, film producer, television host, occasional playback singer and former politician known for his work in Hindi cinema. He is regarded as one of the most succe ...

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. The ''

Statue of Unity The ''Statue of Unity'' is the world's tallest statue, with a height of , located near Kevadia in the state of Gujarat, India. It depicts Indian statesman and independence activist Vallabhbhai Patel (1875–1950), who was the first deputy pr ...

'' has emerged as a major tourist destination in Gujarat. It attracted average 15,036 visitors in the month of November, 2019.

Notes

References

External links

Gujarat 2050 map showing major development areas
{{DEFAULTSORT:Economy Of Gujarat