{"id":18100,"date":"2024-12-26T12:20:52","date_gmt":"2024-12-26T12:20:52","guid":{"rendered":"https:\/\/niir.org\/blog\/?p=18100"},"modified":"2024-12-28T18:07:17","modified_gmt":"2024-12-28T18:07:17","slug":"gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/","title":{"rendered":"Gujarat&#8217;s Manufacturing Growth: Significant Rise in GVA"},"content":{"rendered":"<p><span style=\"font-weight: 400\">According to RBI numbers, Gujarat has surpassed Maharashtra in the list of the largest manufacturing hubs in India. Gujarat&#8217;s GVA (Gross Value Addition) for the manufacturing sector grew 15.9 percent on average per annum between FY 2012 and FY 2020 to hit Rs 5.11 lakh crore as per RBI data.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In that period, even the state of Maharashtra grew 7.5 per cent a year. This has taken Mumbai&#8217;s manufacturing Gross Value Addition (GVA) to Rs 4.34 lakh crore in FY2020 and hence remains the largest services hub in India.<\/span><\/p>\n<p><b>For any Business related Query:<\/b><a href=\"https:\/\/www.entrepreneurindia.co\/contact\"><span style=\"font-weight: 400\"> Visit NPCS<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400\">Some of the worst performing states in the top ten manufacturing states during the studied period include Andhra, Telangana, and Rajasthan, having average annual growth rates of 6.9%, 5.5%, and 3.8%, respectively.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gross Value Addition is actually Gross Domestic Product minus net product taxes. This displays or shows growth in the supply of goods &amp; services. The states that had maximum manufacturing Gross Value Addition included Karnataka with Rs 2.1 lakh crore, Tamil Nadu with Rs 3.43 lakh crore, and Uttar Pradesh at Rs 1.87 lakh crore. The total manufacturing Gross Value Addition for the country increased to Rs 16.9 lakh crore in FY 2020 with average growth rates of 9.7% since FY 2012..<\/span><\/p>\n<p><span style=\"font-weight: 400\">The state remained the largest service provider in India, while GVA (Gross Value Addition) services of Maharashtra increased by 12.6 percent to reach Rs. 15.1 lakh crore in FY 2020.<\/span><\/p>\n<p><b>Related Article:<\/b><a href=\"https:\/\/www.entrepreneurindia.co\/page\/gujarat-india\/\"><span style=\"font-weight: 400\">Gujarat Business Ideas &#8211; Top Entrepreneurial Opportunities<\/span><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87_1 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#Higher_investment_%E2%80%93_a_key_player\" >Higher investment \u2013 a key player<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#One_of_the_most_attractive_destinations_for_FDI\" >One of the most attractive destinations for FDI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#Petroleum_capital\" >Petroleum capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#Worlds_largest_producer_of_processed_diamonds\" >World\u2019s largest producer of processed diamonds<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#42_ports_65_notified_SEZs\" >42 ports &amp; 65 notified SEZs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#Key_sectors_of_the_state_are_as_follows\" >Key sectors of the state are as follows:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#Gujarat_Becomes_Indias_New_Manufacturing_Hub\" >Gujarat Becomes India\u2019s New Manufacturing Hub<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.niir.org\/blog\/gujarats-manufacturing-growth-a-leap-in-gross-value-addition-gva\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Higher_investment_%E2%80%93_a_key_player\"><\/span><b>Higher investment \u2013 a key player<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Gujarat has outdone its other counterpart states in India by making huge investments in manufacturing during the period.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gujarat has topped the charge in capital investment in gross fixed capital formation from FY 2012 to FY 2019, amounting to Rs 5.85 lakh crore. Followed by Maharashtra, which had an investment summed up to Rs 4.07 lakh crore during the specified period, Andhra Pradesh was recorded to have a cumulative GCF of Rs 1.49 lakh crore.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"One_of_the_most_attractive_destinations_for_FDI\"><\/span><b>One of the most attractive destinations for FDI<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">As per the report by KPMG, by virtue of the key reforms that Gujarat brought forward such as one-stop for business clearness, smoother administration of incentive schemes, and even by easing labor norms, now it is going to be one of the top locations of Foreign Direct Investment, aided further by these in boosting ease of doing business in Gujarat.<\/span><\/p>\n<p><b>Project report:<\/b><a href=\"https:\/\/www.entrepreneurindia.co\/pdf-and-doc-details?id=2257\"><span style=\"font-weight: 400\">Best Business to Start in Gujarat<\/span><\/a><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Petroleum_capital\"><\/span><b>Petroleum capital<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Installed power generation capacity as of April 2021 for the state Gujarat stood at 38255.07 MegaWatts. The state is known as the petroleum capital of the country because it has a lot of refining capacity constructed by private &amp; public sector enterprises.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Worlds_largest_producer_of_processed_diamonds\"><\/span><b>World\u2019s largest producer of processed diamonds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">On top of that, Gujarat is also the most processed diamond producer in the whole world. This contributes both at an eighty percent stake of the country&#8217;s diamond exports and a seventy-two percent share of the processed diamond globally.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gujarat is not only the biggest denim manufacturer in India but also ranks third in terms of manufacturing denim overall. It contributes between sixty-five and seventy to the country as far as denim manufacturing is concerned.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>For more information:<\/b><a href=\"https:\/\/www.niir.org\/books\/book\/gujarat-india-business-industrial-directory-database-list-companies-small-medium-enterprises-sme-industries-xlsx-excel-format-7th-edition\/zb,,b0,a,0,0,a\/index.html\"> <span style=\"font-weight: 400\">Read this book<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"42_ports_65_notified_SEZs\"><\/span><b>42 ports &amp; 65 notified SEZs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">The state has 42 ports; it has 18 domestic airports and one international airport.<\/span><\/p>\n<p>And also the number of product clusters is 106, as well as the 60 notified special economic zones. It aims at getting investments into the state of Gujarat according to the DMIC-determined industrial corridors for USD 90 billion.<\/p>\n<p>As for the state, the highest amount of Foreign Direct Investment received for the Financial Year 2021 was USD 21.89 billion as per the Department for Promotion of Industry and Internal Trade for Gujarat. It is the state leader among all the Indian states in terms of total thirty percent of total equity inflows.<\/p>\n<p><span style=\"font-weight: 400\">Exports of Gujarat aggregated USD 63440 million during 2019-2020 from the state and were USD 60587 million in 2020-2021.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Key_sectors_of_the_state_are_as_follows\"><\/span><strong>Key sectors of the state are as follows:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Gujarat has over three thousand and three hundred pharmaceutical manufacturing plants that contributed thirty to thirty-five percent to the country&#8217;s pharma industry&#8217;s turnover and around twenty-eight percent to the country&#8217;s pharma export during 2018-2019.<\/span><\/p>\n<p><span style=\"font-weight: 400\">As of March 2019, 79 APMCs (agricultural produce market committees) were linked with the National eNAM (National Agriculture Market).<\/span><\/p>\n<p><span style=\"font-weight: 400\">The Indian Ports Association data published by the month of June last year shows that the total number of ports is forty-six, of which Deendayal port handled 73.86 million metric tonnes of cargo traffic from April to November last year.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Dubbed the petrochemical and chemical hub of the country, the eight clusters, fourteen industrial estates, and three special economic zones in Gujarat are dedicated mainly to chemicals and petrochemicals.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Related Article:<\/b><a href=\"https:\/\/www.niir.org\/profile-project-reports\/profiles\/best-business-opportunities-in-gujarat-identification-selection-right-project-thrust-areas-for-investment-industry-startup-entrepreneurship\/z,,8e,96,a\/index.html?_sort_by=default\"><span style=\"font-weight: 400\">Best Business Opportunities in Gujarat &#8211; Identification and &#8230;<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Gujarat_Becomes_Indias_New_Manufacturing_Hub\"><\/span><b>Gujarat Becomes India\u2019s New Manufacturing Hub<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Gujarat saw over 15.9% growth per annum from FY 2012 to FY 2020, to reach gross-value addition of Rs 5.11 lakh crore, according to Gross value addition data released by Reserve Bank of India. The much pampered geography in facilitative business and government has paved the way for Gujarat to become the Best State. Maharashtra holds place number 2 standing at a growth rate of 7.5% annually over Rs 4.34 lakh crore. Indian fashion trends<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gross Value Added is a measure of economic productivity defined as a contribution to an economy, sector, or region by a corporate subsidiary, company, or municipality.<\/span><\/p>\n<p><span style=\"font-weight: 400\">By major improvements in investment overall, by stepping up manufacturing growth within the state itself, Gujarat was able to prove himself at the top. Several factors made this possible: change in Labour Laws, more liberal considering industry; established a single-window clearance across the board for businesses: Export Processing Zones, Special Economic Zones, Software Technology Parks, and added these to other business-friendly enabling environments.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Other bad performing states are Rajasthan, Telangana, and Andhra Pradesh. States doing excellent in the services sector are Maharashtra, Tamil Nadu, and Karnataka. Their service GVA(Gross Value Addition) is the highest in the country.<\/span><\/p>\n<p><b>Youtube Video:\u00a0 <\/b><a href=\"https:\/\/www.youtube.com\/watch?v=bWZdCKS-4gs\"><span style=\"font-weight: 400\">Best Business to Start in Gujarat, India.<\/span><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Remarkably poised today as India&#8217;s leading manufacturing hub, Gujarat has secured this status with strong policies, ease of doing business, and comprehensive investment in infrastructure and industry. With an annual growth rate of 15.9% in manufacturing Gross Value Addition (GVA) between FY 2012 and FY 2020, Gujarat has surpassed Maharashtra due to reforms such as single-window clearances, softened labor norms, and FDI inflows. Its dominance in petroleum, processed diamonds, denim, and pharmaceuticals further highlight its industrial prowess. Strategic infrastructure, including ports, SEZs, and power capacity, alongside a business-friendly environment, has positioned Gujarat as a model state for economic development and manufacturing excellence in India.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"According to RBI numbers, Gujarat has surpassed Maharashtra in the list of the largest manufacturing hubs in India.&hellip;","protected":false},"author":1,"featured_media":18125,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":40,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","footnotes":""},"categories":[39],"tags":[],"industry":[12283],"class_list":["post-18100","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-opportunities","industry-best-business-opportunities-in-india","cs-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - 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