A manufacturing powerhouse attracting global attention

In the pursuit of establishing itself as a global manufacturing powerhouse, Gujarat has emerged as a frontrunner among Indian states. Fuelled by strategic positioning, robust infrastructure, and investor-friendly policies, Gujarat has become a magnet for both domestic and foreign investments.

This article explores the factors driving Gujarat’s success and its potential contribution to India’s ambitious goal of achieving a $1 trillion manufacturing economy by 2025-26.

A magnet for investments 

Colliers India’s recent study underscores Gujarat’s dominance in attracting manufacturing investments in 2023. This can be attributed to several key factors: 

1. Pro-Industry Policies: 

• Gujarat’s dedicated industrial policy allocates a substantial 34.7% of incentives and benefits specifically to the manufacturing sector.

• This approach has resulted in attracting investments exceeding Rs 30,000 crores in 2023 from both domestic and foreign manufacturers.

2. Unrivalled infrastructure: 

• With a 1600 km coastline and major ports like Kandla and Mundra, Gujarat excels in logistics, handling over 500 million tonnes of container throughput annually.

• Seamless movement of goods is a crucial aspect for any manufacturing hub.

3. Favourable labour environment: 

• Gujarat’s low unemployment rate (4%) attracts skilled labor, while its business-friendly environment fosters positive employer-employee relations.

4. Stable governance & decision-making: 

• The state offers a stable political climate and streamlined decision-making processes, ensuring swift action and minimizing bureaucratic hurdles for investors.

Foreign Direct Investment (FDI): A global partnership