Economy of Gujarat

Over the years Gujarat has evolved into one of the most preferred destinations for industrial investment in the country. Blessed with a variegated and affluent natural resource base, an abundant supply of skilled manpower and sound infrastructure facilities Gujarat is a home to some of the most dynamic entrepreneurs and profitable industries in the country. Its agricultural sector is a vital player in state's economy which incorporates highly diversified cropping pattern and technologies. Some of the other sectors like chemicals and textiles contribute immensely to the overall economic growth of the state. Owing to all these factors Gujarat has been attracting large number of investors to invest into the various sectors thus fostering the state's financial growth. Apart from these the information technology and tourism sector also provide immense investment opportunities in the State. Both these sectors are expected to grow exponentially in the coming years in the wake of government's effectual policies. Read on to have a panoramic view of the economy of Gujarat.

Agriculture
Gujarat is the leading producer of non-food crops such as cotton, tobacco, and groundnuts in India. As far as food crops are concerned Gujarat is a major producer of food crops such as rice, jowar, wheat, maize, bajra, tur, and gram. The economy of Gujarat profits hugely from agriculture and more than one-half of the total land area is crop area. Animal husbandry and dairying are the key players in the rural economy of Gujarat. The state is also the biggest producer of milk in India. The products of Amul milk co-operative federation which is Asia's biggest dairy are widely used all across the country. Among livestock raised in Gujarat are buffalo and other cattle, sheep, and goats. According to 1997 livestock census there were 209.70 lakh livestock in Gujarat. The survey of major livestock products estimated that, during the year 2002-03 alone the state of Gujarat produced 385 million eggs, 6.09 million tons of milk, and 2.71 million kg of wool. As far as horticulture productions are concerned, Gujarat produces banana, mango, sapota and papaya in abundance. Gujarat is the third biggest producer of banana, sixth in the production of mango, second in papaya and sapota production. The economy of Gujarat is also fostered by industries like textiles, oil and soap.

Information Technology
Gujarat is evolving into a favored destination for IT industries. There are several major IT software companies which have opened up their branches in the State owing to the initiative which the Government of Gujarat has undertaken in the IT sector. The government of Gujarat has formulated a strategic IT policy, with the sole intention of promoting overall IT growth in the State, as well as developing skilled manpower in IT. In this regard the government has also proposed a state-of-the-art Info-city project at Gandhinagar. The project is supposed to be developed on around 150 acres of land on Gandhinagar- Ahmedabad highway, just 20 km away from the Ahmedabad International Airport. This Infocity will incorporate a ready to use built-up space and ready to use plots with world class support system. It will also provide social infrastructure, utilities along with several other amenities.

Industry
As India's one of the most industrialized states, Gujarat is home of a variety of industries. However, the major industries located in Gujarat are: general and electrical engineering textiles, chemicals, vegetable oils, soda ash, and cement. Among other important resources that are produced in the state are sugarcane, cotton, dates, peanuts, and petrol. Owing to the largest petro-chemical complex in the country, in recent years fertilizers and petrochemical industries have sprouted in the state and consequently Gujarat has evolved into a major producer of inorganic chemicals such as soda-ash and caustic soda as well as chemical fertilizers. The industries involved in the manufacturing of machinery and machinery tools and their parts apart from electrical machinery, as well as those manufacturing wool, silk and synthetic fiber textiles and basic metal and alloys cover around 30% of the total industrial workers. Some of the other major manufacturing products include rubber, coal products, plastic, food products, petroleum and transport equipment and parts etc.

Mineral Wealth
The land of Gujarat is blessed with an abundant supply of Mineral resources which contribute immensely to the economy of the state. The mineral deposit of Gujarat constitutes mainly of limestone, bauxite, lignite, manganese ore, and natural gas. The several mineral based industries thriving in Gujarat include industries like: - limestone based cement and soda ash industry, bauxite-based alumina plant, marble and granite based cutting, clay based ceramic units and silica sand based glass units, lignite-based power plants and polishing plants. As much as 12.4% the total sales by industries in the state are due to this mineral sector. Processed minerals such as chalk, kaolin, betonies, silica sand, fire clay, etc. are consumed by glass, plastic, ceramic, and paint & rubber industries of the State. Along with the availability of raw materials, the infrastructure, and natural gas the other major factor that adds to Gujarat's economic advantage is its skilled manpower. Mining clusters have flourished in Kutch, Junagadh, Vadodara, Bharuch and Mehsana districts. Several small-scale entrepreneurs have made significant inroads into the processing of mineral resources who export low-grade bauxite, decorative and dimension stones (like marble, granite and sandstone), cement clinker to the South Asian markets.

Tourism
Gujarat is one of the favorite tourist destinations in India with annual footfall of 19.81 million tourists in 2010-11. Some of the popular tourist destinations in Gujarat are Somnath temple, Dwarka, Kutch, Gir Forest, Lothal and Dholavira. Ahmedabad is considered to be an ideal hub to cover all the destinations in Gujarat.

With its abundant supply of minerals and a strong agricultural base Gujarat is one of the most affluent states in this country. Moreover in recent years the state has also been able to lure some of the prominent IT sector companies which will certainly contribute to the further economic development of the state.