Investment and Industrial Policies-Gujarat

Gujarat Industrial Policy 2003

Gujarat has been the front-runner in the overall economic development of the country all these years, as is evident from the fact that with mere 6% of geographical area and 5% of the population of India, the state contributes to 21% of the country's exports and 6.42% of the national GDP at constant prices. If the decadal growth of performance of some of the Indian states vis-à-vis other Asian economies with that of Gujarat is compared, one gets quite an encouraging scenario. The industrial growth of Gujarat with a figure of 8.52% could be way ahead of many Indian states and other Asian Tigers viz. Singapore, Malaysia and Korea.

Power Policy

Power is the engine of growth of any developing economy. Consumption of electrical energy is an universally accepted indicator of progress in the agricultural, industrial and commercial sectors, as also of the well being of the people of the State. No major economic activity can be sustained without adequate and reliable supply of power. It plays a critical role in employment generation, regional development and poverty eradication.

Tourism Policy

In recent years tourism has emerged as a major economic activity that is employment oriented and earns foreign exchange. Its share in the worlds GDP in 1994-95 was 10% which is more than the world military budgets put together. In global terms, the investment in tourism industry and travel trade accounts for 7% of the total capital investment. Today 21.2 crore people around the globe are employed in travel trade and tourism. In future, this industry is likely to see unprecedented growth. According to the World Tourism Council at Bruseels, the revenues from travel and tourism in Asia Pacific region will grow at the rate of 7.8% annually over the next decade.Amongst the economic sectors, the tourism sector is highly labor intensive. A survey by the Government of India notes that the rate of employment generation (direct and indirect) in tourism is 52 persons employed per Rs.10 lakh investment (based on 1992-93 Consumer Price Index). This is much higher than the rates of employment generation in most other economic sectors

Investment Incentives
Gujarat State Financial Corporation

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