Gujarat Poised to Lead India's Manufacturing Growth Towards a $1 Trillion Market

Gandhinagar — In anticipation of the 10th Vibrant Gujarat Global Summit, the state is buzzing with excitement as a recent study by Colliers India positions Gujarat at the forefront of India's manufacturing revolution. Chief Minister Bhupendra Patel's leadership is set to propel the state to new heights, with Colliers estimating a remarkable $1 trillion manufacturing market for India by 2025-26, where Gujarat is expected to play a pivotal role.

Key Findings: Gujarat Leads in Manufacturing Investments

Colliers' comprehensive study highlights Gujarat's outstanding achievements in the manufacturing sector. In 2023, the state secured the highest investments, making it the "Most Preferred Destination for Manufacturing" with Maharashtra and Tamil Nadu following closely. According to Swapnil Anil, Executive Director and Head of Advisory Services at Colliers India, Gujarat's new industrial policy, offering 34.7% incentives and benefits, has attracted over Rs 30,000 crore in investments from both domestic and foreign manufacturers. This surge in investment is set to fortify Gujarat's industrial footprint.

Gujarat's Winning Formula: Low Unemployment, Business-Friendly Environment

The study identifies Gujarat as the state with the lowest unemployment rate at 4%, a key factor attracting industries to set up their operations. Factors such as robust infrastructure, affordable land rates, quick decision-making, and supportive business policies have positioned Gujarat as the manufacturing hub of India. Colliers asserts that the state's success is a result of a strategic blend of policies, resources, and an investment-friendly environment.

Vibrant Gujarat Summit: A Global Economic Powerhouse

The Vibrant Gujarat Summit, a beacon for global economic cooperation, has played a crucial role in Gujarat's industrial success. Over the past two decades, it has become the most significant investment event in the country, showcasing the state's proactive approach in understanding global industrial needs. Offering incentives like Common Environmental Infrastructure Facilities at 40% of the project cost and concessional rates for land use conversion, Gujarat has attracted global investors.

Strategic MoUs Drive Progress

Gujarat's proactive administrative style is evident in the signing of several MoUs in the past six months, collectively valued at over Rs 3,000 crore. These MoUs span diverse sectors, including textiles, industrial parks, engineering, and auto industries, demonstrating the state's commitment to regional development. With affordable labor facilities and supportive government policies, Gujarat stands out as an attractive destination for industrial development.

Gujarat's Manufacturing Dominance and Incentive Allocation

Colliers' study emphasizes Gujarat's strength in industrial production, with manufacturing constituting 12.5% of the state's export portfolio. The state allocates a significant 34.7% of incentives and benefits to the manufacturing sector, showcasing its dedication to driving manufacturing growth. Gujarat's competitive average rents, attractive capital rates, extensive coastline, and major ports further position it as a logistics powerhouse.

Global Appeal and Stable Governance

Gujarat's appeal extends globally, with renowned industries in automobile, semiconductor, FMCG, and IT favoring the state. The state's harmonious labor relations, minimal strikes, and stable governance over the last six terms underscore its attractiveness for businesses and investors alike.