Gujarat Chief Minister Bhupendra Patel has said his government has set a target to contribute 10 per cent to India's GDP and become a ₹500 billion economy by 2026-27.
Gujarat contributes 8.3% to the national Gross Domestic Product (GDP), Mr. Patel said in an email interview to PTI ahead of the tenth Vibrant Gujarat Global Summit, to be inaugurated by Prime Minister Narendra Modi on Wednesday. "With 5% of the population, Gujarat contributes over 8.3% to the national GDP. In the previous year, the state accounted for a remarkable 33 per cent of India's total merchandise exports," he said.
The summit will showcase Gujarat's futuristic projects and investments (DREAM City, GIFT City, Dholera SIR, Ahmedabad-Mumbai High-Speed Rail), encompassing new and emerging sectors such as semiconductors, renewable energy, electric vehicles, green hydrogen, aerospace and defence, plug-and-play parks, artificial intelligence, smart greenfield cities to name a few, he said.
Apart from leading in sectors such as textiles, chemicals and petrochemicals, gems, jewellery and ceramics, Gujarat has also emerged as the hub of the automobile sector, establishing itself as an economic powerhouse of the country, Mr. Patel said.
GIFT City’s potential
He said that the Gujarat International Finance Tec (GIFT) City located in Gandhinagar, is poised to become one of the world’s premier international financial centres in the coming years. “I firmly believe that the GIFT City is poised to become one of the world’s premier international financial centres in the coming years,” Mr. Patel said.
The GIFT City is undergoing massive infrastructure expansion after which the total land area will reach around 3,400 acres, he said in the email interview. The riverfront along the GIFT City is being developed with an international-level retail, recreation and entertainment zone. Metro connectivity to the GIFT City will also be operational by mid-2024, he said.
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Mr. Patel said that per PM Narendra Modi’s vision for the GIFT City to become a world-class financial, IT &ITeS and fintech hub, the State Government held meetings with global and national financial sector companies as part of the international and national roadshows under the Vibrant Gujarat Global Summit (VGGS) 2024. Several companies from countries like the UAE, Japan, Australia, Singapore and the US have expressed their interest in exploring investment opportunities in the GIFT-IFSC, he said.
Elaborating on the GIFT-IFSC, he said there are 580 operational entities in the International Financial Services Centre (IFSC). Notable large-scale investments have already been flowing in GIFT-IFSC, including global players like Google, Bank of America, Morgan Stanley etc.
International universities are setting up their campuses, IndiGo and Air India are starting aircraft leasing activities, SGX Nifty trading as GIFT Nifty, and India International Bullion Exchange IFSC Limited (IIBX) is being set up in the GIFT City, he said.
As part of the 10th edition of VGGS, a Global FinTech Leadership Forum is being organised at the GIFT City on January 10 wherein PM Modi will interact with the CEOs of top finance and technology institutions in a closed-door roundtable, the CM said.
The event, to be moderated by Kotak Mahindra Bank Director Uday Kotak, will provide a platform to the CEOs of top finance and technology companies to share their views on the emerging fintech landscape globally, he said.
Mr. Patel also said that the Dholera Special Investment Region (SIR), with an area of 920 sq km, is poised to be the biggest industrial hub of the future.
“Dholera will serve as a central hub for cluster development, ensuring comprehensive connectivity through initiatives like a four-lane expressway, Metro rail, multi-modal transport, and the Bhimnath-Dholera Freight Rail Line. Notably, it houses a dedicated Semicon City, marking a significant stride for India’s semiconductor and display industry,” he said.
Gujarat’s economy is ‘exceptionally resilient’
"The strong global ties and a diversified GSDP make our economy exceptionally resilient. Our government has set a target to contribute 10 per cent to India's GDP and becoming a $500 billion economy by 2026-27," Mr. Patel said in reply to a query on what will be the contribution of Gujarat in making India a $5 trillion economy.
"Our strategic focus is concentrated on sectors that not only define the current economic landscape but also play a pivotal role in shaping the global future. The growth of the state has substantially facilitated in solidifying the concept that says, 'Gujarat means growth'," he said.
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Strategic development in new and emerging sectors such as semiconductors, green hydrogen, electric vehicles, renewable energy, and the financial services industry stand as prime examples of the state's progress toward achieving this ambitious goal, he added.
"Pioneering initiatives like India's first operational smart city - GIFT, and industry-friendly zones like Dholera Special Investment Region (DSIR), Mandal-Becharaji Special Investment Region, and Petroleum, Chemicals and Petrochemicals Investment Region. PM MITRA Park, Bulk Drug Park and Medical Devices Park are further poised to redefine industrial activities in the state," he said.
Gujarat will play a pivotal role in realising Prime Minister Narendra Modi's vision of 'Viksit Bharat @2047', Mr. Patel said.
Under the visionary leadership of PM Modi, the Vibrant Gujarat Global Summit has been a game changer for the state, he said. The previous nine editions of the summit have positioned Gujarat as one of the most preferred investment destinations, contributing significantly to India's growth story, he added.
"In this journey of last 20 years, Gujarat has witnessed a 16-fold increase in the GSDP from $17.7 billion in 2002-03 to $282 billion in 2022-23," he said.
Gujarat is a policy-driven state and to create an enabling environment, the State Government has launched policies and schemes incentivising investors to further growth like the industrial policy, agro and food processing policy, health policy, solar and wind energy policy, electric vehicle policy, semiconductor policy, biotechnology policy and renewable energy policy to name a few, Mr. Patel said.
He said the ease of doing business, investor-friendly approach and robust industrial infrastructure have made the state a preferred investment hub of Indian and global conglomerates.
To showcase Gujarat on the global map as a knowledge-based economy, a significant emphasis is placed on nurturing new-age skills among the youth, he said.
Taking ‘Vibrant Gujarat’ to the grassroots
“We took the concept of Vibrant Gujarat to the grassroots by holding events such as Vibrant Gujarat-Vibrant District in 32 districts across the State to create a sense of participation among all. Over 2,600 MoUs were signed, bringing over 45,000 crore potential investments in the districts,” he said.
The Vibrant Gujarat Summit 2024 aims to reach every corner of the state, aligning with national priorities and the themes of G20, the chief minister said.
