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Business and Economy of Gujarat

The state of Gujarat, situated on the western coast of India, is one of the most prosperous states of India. The business and economy of Gujarat is healthy and vibrant. Gujarat is not only famous in India but also across the globe, for its diamond merchants and diamond trade.

The state of Gujarat accounts for 19.8 percent of the country's industrial produce, making it the most industrialized state in India. Presently Gujarat has a per capita GDP, which is 20 times of national average. It is said that if Gujarat were a nation then it would have been the 67th richest nation in the world, above many Asian and European countries. Gujarat is used as headquarters for a number of businesses that are spread all over India. The important agricultural produce of the state includes cotton, sugarcane, peanuts, dates, milk and the allied milk products. The major industrial products are cement and petrol.

There are other major distinctions that Gujarat hold. The state accounts for 20 percent of India's total exports, and 10 percent of the country's mineral production; it also accounts for 43 percent of India's pharmaceutical products and 47 percent of India's petrochemical products.

Business and Economy of Gujarat has many other feathers in its cap. It also has the world's largest ship breaking yard, located near Bhavnagar, at Alang. The oil refinery at Jamnagar, operated by Reliance Petroleum Limited, is the world's largest grass roots refinery. The company has also evinced interest in the construction of another Special Economic Zone with plans to set it up at Jamnagar. Gujarat heads the list of states in India in the production of the thermal electricity.

During the period of 1960 to 1990, Gujarat was established as a leader in various industrial sectors like engineering, textiles, dairy, petrochemicals, pharmaceuticals, cement, ceramics and the most important of all, gems and jewelry. During 1994-2002, Gujarat's State Domestic Product rose at an average rate of 14 percent per annum in real terms. Gujarat achieved as much as 35 percent enhancement in its power generation capacity during the period of 1995-96 to 2000-01. Gujarat is one of the few states in India that has encouraged private sector investments on a large scale. The liquid cargo handling port at Dahej is also set up in joint sector and has been also made operational.

On 10 January 2007, the Gujarat government opened an investors' summit that was called Vibrant Gujarat, and it lasted for three days at the Science City of Ahmedabad. During these three-day summit, the State Government managed to sign over 104 memoranda of understandings for Special Economic Zones that totaled up to Rs. 2.5 lakh crore. The most astonishing part is that most of the investment done was channeled from the domestic industry. The meet gave a fillip to the already burgeoning Gujarat's business and economy.

Last Updated On: 2011/07/04