Gujarat is one of India’s most industrialized states with a wide variety of industries, chief amongst them being general and electrical engineering, textile manufacture, vegetable oils, chemicals, soda ash and cement but new industries in fertilizers and petrochemicals are as well emerging.
Despite the global financial meltdown, Gujarat economy thrived thanks to investments by the Indian Diaspora and companies. This was evident at the yearly Gujarat summit that brings overseas companies Gujaratis together. Companies that attended the summit in January committed to investments of over $240 billion in a memorandum of understanding. The state had moved from beyond the 200 industrial estates and 60 Special Economic Zones to it had initially to Special Investment Regions. The Special Investments Regions are expected to over see global economic activity with a support base of world class infrastructure, centers of excellence, premium civic amenities and a proactive policy framework. According to a Deutsche Bank Study, Gujarat offers the most favorable outlook for growth and demand for infrastructure projects. The Indian government reported that in 2009/2010 fiscal year, Gujarat posted an impressive 12.99% Gross State Domestic Product growth, way above the targeted value that was marked at 11.2% by the planning commission under the Five Year Plan covering 2007/2012.
The state is planning to achieve a 14% and 15% growth in the in the 2010/2011 and 2011/2012 fiscal years respectively thanks to its remarkable GSDP; when compared to the Country’s probable GDP growth of 7.2%. Further more, it targets to achieve 11.2% growth in the 11th Five Year Plan as opposed to the 9% set by the Country. Gujarat recorded an economic annual growth rate of 15.04% during the last six years, one of the highest in the Country with its GDP at current prices in 2009/2010 being estimated at Rs 3,81,028 compared to Rs 3,37,217 crore in 2008/2009. This shows an increase of 13%. While there was a slight fall in GSDP during the global recession on the Indian economy, Gujarat state’s economy made a quick recovery and continues to maintain its high growth trajectory. In 2008/2009 fiscal year, the shares of primary, secondary and tertiary sectors in the sum value of GSDP growth stood at 17.76%, 42.05% and 41.19% respectively against those posted in these sectors in the 1999/2000 base year that were 18.62%, 39.21% and 42.17%.
The GSDP indexes are reflective of the continued balanced growth of Gujarat’s economy and its projections for the next two years of the current Five Year Plan are expected to accelerate its growth rate to 14% and 15%.