Gujarat Aims to Contribute 10% to India’s GDP, Becoming a $500B Economy by 2026-27
Gujarat, one of India’s most prosperous states, has set an ambitious target to contribute 10% to the country’s Gross Domestic Product (GDP) and become a $500 billion economy by 2026-27. Chief Minister Bhupendra Patel unveiled this goal ahead of the 10th Vibrant Gujarat Global Summit, which will be inaugurated by Prime Minister Narendra Modi.
Despite being home to only 5% of the country’s population, Gujarat currently contributes 8.3% to India’s GDP, showcasing its significant economic prowess. In the previous year, the state accounted for an impressive 33% of India’s total merchandise exports. Gujarat’s achievements in sectors such as textiles, chemicals and petrochemicals, gems and jewelry, ceramics, and the automobile industry have solidified its position as an economic powerhouse.
At the upcoming Vibrant Gujarat Global Summit, the state will showcase its futuristic projects and investments aimed at propelling Gujarat’s growth. These include initiatives in sectors such as semiconductors, renewable energy, electric vehicles, green hydrogen, aerospace and defense, artificial intelligence, and smart greenfield cities. Notably, Gujarat is home to the first operational smart city in India, GIFT (Gujarat International Finance Tec-City), which has positioned the state as a leading investment destination.
The Gujarat government has also prioritized the development of new and emerging sectors to achieve its ambitious targets. Projects such as Dholera Special Investment Region, Mandal-Becharaji Special Investment Region, and Petroleum, Chemicals and Petrochemicals Investment Region, along with various industrial parks, are expected to redefine industrial activities in the state.
Gujarat’s strategic focus extends beyond its own growth. Chief Minister Patel emphasized that the state will play a pivotal role in realizing Prime Minister Modi‘s vision of a developed India by 2047. The Vibrant Gujarat Global Summit, initiated by PM Modi, has been instrumental in positioning Gujarat as a preferred investment destination over the past two decades. The state has witnessed a remarkable 16-fold increase in its Gross State Domestic Product (GSDP) from $17.7 billion in 2002-03 to $282 billion in 2022-23.
To create an enabling environment for investors, Gujarat has implemented policies and schemes that incentivize growth. These include industrial, agro and food processing, health, solar and wind energy, electric vehicle, semiconductor, biotechnology, and renewable energy policies. The state’s ease of doing business, investor-friendly approach, and robust industrial infrastructure have made it a favored hub for both domestic and global conglomerates.
Gujarat’s commitment to nurturing new-age skills among its youth is evident through its focus on creating a knowledge-based economy. The state has taken Vibrant Gujarat events to grassroots levels, facilitating participation and signing over 2,600 Memorandums of Understanding (MoUs) across its 32 districts. These MoUs have the potential to bring in investments totaling over ₹45,000 crores.
As Gujarat prepares for the Vibrant Gujarat Summit 2024, it aims to align with national priorities and the themes of the G20. The state’s continued efforts toward economic growth and development underline its aspiration to become a prominent contributor to India’s journey toward a $5 trillion economy.
In conclusion, Gujarat’s strategic programs, strong economic sectors, and favorable investment environment have positioned the state as an economic powerhouse. With its sights set on further growth and contribution to India’s GDP, Gujarat aims to remain at the forefront of economic development in the country.
