Gujarat Growth
Accelerating growth in Gujarat
A discussion note
KPMG IN INDIA
Content
Foreward Gujarat : A holistic growth story Growth accelerators Building a success story The way forward
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Foreward
The success story of Gujarat stands out amongst the Indian states as one of the most dynamic growth stories. This was evident during the Vibrant Gujarat Summit, where the State attracted nearly USD 100 billion investments in January 2007 This figure is more than what China attracts as FDI in a year! . Gujarat’s State GDP has grown by 12 percent in real terms in the last 12 years. This State is one of the key drivers of India’s growth, where GDP is growing at a rate of 9.2 percent. However, the State needs to benchmark itself with the best in the world – Dubai, Singapore, China – and not become complacent by doing better than other Indian states. Gujarat, therefore, should consider such growth accelerators that will enable it to draw the best in class and bring about a paradigm shift in the State. This needs to be fleshed out further to facilitate growth and become the economic driving force for India. Clearly for India to grow at 10 percent, Gujarat needs to grow at 15 percent. This discussion note put forward by KPMG and CII identifies focus areas and an approach to make Gujarat 2015 vision a ‘reality’. Pradeep Udhas Head – Markets KPMG in India
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Gujarat : A holistic growth story
Gujarat continues to occupy a distinctive position in the Indian economy. With 5 percent of the country’s population and 6 percent of the country’s geographical area, Gujarat contributes to about 16 percent of industrial production in India. The State has witnessed an annual average growth of 9 percent in the last three years (GDP is estimated at USD 38.4 billion) and an average industrial growth of 15 percent for the same period. However, these macroeconomic statistics look much more impressive on a closer look at the industrial landscape of the State. Accounting for
A discussion note
KPMG IN INDIA
Content
Foreward Gujarat : A holistic growth story Growth accelerators Building a success story The way forward
1 2 5 7 22
1
Foreward
The success story of Gujarat stands out amongst the Indian states as one of the most dynamic growth stories. This was evident during the Vibrant Gujarat Summit, where the State attracted nearly USD 100 billion investments in January 2007 This figure is more than what China attracts as FDI in a year! . Gujarat’s State GDP has grown by 12 percent in real terms in the last 12 years. This State is one of the key drivers of India’s growth, where GDP is growing at a rate of 9.2 percent. However, the State needs to benchmark itself with the best in the world – Dubai, Singapore, China – and not become complacent by doing better than other Indian states. Gujarat, therefore, should consider such growth accelerators that will enable it to draw the best in class and bring about a paradigm shift in the State. This needs to be fleshed out further to facilitate growth and become the economic driving force for India. Clearly for India to grow at 10 percent, Gujarat needs to grow at 15 percent. This discussion note put forward by KPMG and CII identifies focus areas and an approach to make Gujarat 2015 vision a ‘reality’. Pradeep Udhas Head – Markets KPMG in India
2
Gujarat : A holistic growth story
Gujarat continues to occupy a distinctive position in the Indian economy. With 5 percent of the country’s population and 6 percent of the country’s geographical area, Gujarat contributes to about 16 percent of industrial production in India. The State has witnessed an annual average growth of 9 percent in the last three years (GDP is estimated at USD 38.4 billion) and an average industrial growth of 15 percent for the same period. However, these macroeconomic statistics look much more impressive on a closer look at the industrial landscape of the State. Accounting for