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India By State - Gujarat - State Overview

State Overview

Economic Snapshot

Capital Gandhinagar
Area (sq km) 196, 024
Population (Census 2001, million) 50.7
Literacy Rate (%) 69.1
Sex Ratio (per 1000 males) 920
Length of Coastline (km) 1,600 (the longest in India) 1,600 (the longest in India)
GSDP 2006-07 (US$ billion) 76.3
GSDP over 10 years (%) 15.8
National Highway Length (km) 1,949
Domestic Airports Ahmedabad, Surat, Vadodara, Jamnagar, Bhavnagar, Bhuj, Kandla, Keshod, Porbandar, Rajkot
International Airport Sardar Vallabhbhai International Airport at Ahmedabad
Major Ports Kandla, Dahej, Hazira, Mundra
Key Industries Chemicals
Drugs & Pharmaceuticals
Gems and Jewellery
Mines & Minerals
Agro- based
Light and heavy engineering
Per Capita GSDP US$ 1355.7

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Gujarat, one of the most industrialised states in India is situated on the west coast of India between It came into existence as a separate State on 1st May 1960. Gujarat is bounded by the Arabian Sea in the West, by the States of Rajasthan in the North and Northeast, by Madhya Pradesh in the East and by Maharashtra in the South and South East. The State has an international border and has a common frontier with the Pakistan at the north-western fringe. Gandhinagar, located near Ahmedabad is its capital. At present, Gujarat comprises of 25 districts. The official and primary language spoken is Gujarati.


Population Demographics

  • Capital: Gandhinagar
  • Population: 50.7 million
  • Density: 258 per sq. km.
  • Urban Population: 37.35%
  • Literacy Rate: 69.1%
  • Male Literacy: 79.70%
  • Female Literacy: 57.80%
  • Sex Ratio: 920 females to 1000 males
  • Decadal Growth Rate: 22.66%
  • Religion(s): 89.1% Hindu, 9.1% Muslim, 1.0% Jain, 0.1% Sikh.

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As one of the most industrialised States within India, Gujarat attracts the cream of domestic and multinational investment in the leading sectors of the economy. The increase in industrial activities has significantly improved the wealth and living standards of the people of Gujarat. In the fiscal year 2007-08, the state's per capita income stood at $1355.7, higher than the national average of $827.2.

Its manufacturing units account for the largest employment of manpower across industries.

As on June 2007, employment in public sector establishments covered under the employment market information (EMI) scheme was 830,000, whereas in it's the private sector it was 1.1 million. Out of the total 1.89 million people employed in the organised sector, 150,000 (18.66 per cent) were women.

The tertiary sector in Gujarat contributes the most to the GSDP. The agriculture sector is indeed the backbone of Gujarat and also serves as a strong base for the states economy. Rapid growth in agro-technology and food production has helped immensely in boosting its manufacturing and services sector. Gujarat is India's largest producer of castor, groundnut, cotton, banana and tobacco.

Sectoral Contribution of GSDP

f the service sector can be attributed to increase in the increasing industrial activity. The fast growing manufacturing sector is largely responsible for the development of Gujarat. The state has over 312,000 small and 2,200 medium enterprises and is thus increasingly recognised as the hub of manufacturing activities. Contributing over 30 per cent of total manufacturing and exports of Gujarat, the small and medium enterprise (SME) sector has been instrumental in shaping the manufacturing industry.

From the period 2003-04 to 2004-05, there has been a sharp rise in the number of factories and it has reached a growth rate of 6.31 percent. The number of factories increased from 12,795 in 2003-04 to 13,603 in 2004-05. The Net Value Added by the factory sector increased from $7.22 billion in 2003-04 to $ 9 billion in 2004-05, recording an increase of 24.77 per cent, which indicates the state's industrial progress. The average daily employment in working factories also increased from 978,000 at the end of 2005 to 1.03 million a year later. The capital investment by the factory sector in Gujarat also increased from $21.45 billion in 2003-04 to $21.77 billion in 2004- 05, recording an increase of 1.54 per cent.

As per the provisional summary results of the Annual Survey of Industries (ASI: 2004-05), Gujarat ranks second in the country, in terms of state-wise percentage share in Net Value Added by Manufacture generated by the factory sector.

The share of Gujarat in the country's industrial aggregate is as follows:

  • 9.97% factories
  • 9.56% employees
  • 15.59% of value of output
  • 13.86 Net Value Added

There has been a remarkable financial growth and Gujarat has seen revenue deficit decreasing from $935.37 million in 2004-05 to a revenue surplus of $417.74 million in 2006-07. The total outlay has tripled in the 11th Five Year Plan (2007-11), over the previous one.

The proposed outlay for the Eleventh Five Year Plan (2007-12) of the state has been fixed at $26.73 billion by the National Development Council. The state is targeting an annual GDP growth of 11.02 per cent, agricultural growth of 5.5 per cent, and industrial sector growth of 14 per cent during the plan period. The target of the state was set at 10.2 per cent growth rate for the Tenth Five Year Plan (2002-07) higher than the national growth rate of eight per cent. Gujarat's economy has recorded an annual average growth rate of 10.4 per cent for the entire plan period (2002-2007). The state has set the highest growth target of 11.2 per cent for the 11th Five Year Plan.

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Physical Infrastructure



Gujarat has ten airports, the most of any Indian state. All are domestic airports except Sardar Vallabhbhai Patel International Airport in Ahmedabad.

International Airport - Sardar Vallabhbhai Patel International Airport (Ahmedabad) - Many domestic as well as international flights operates from here.

Domestic Airports - Bhavnagar Airport, 9 km from the city of Bhavnagar.


There are 41 ports in Gujarat, along 4600 km the coastline including 1 major port at Khanda and Dahej, Hazira, Mundraand. The others are minor ports which handle over 80 per cent of port traffic in the country.

Gujarat was the first state to announce a separate Port Policy, which integrates the development of ports with industrial development, power generation and infrastructure development. It was also the first state to privatize the construction of ports in the country. Gujarat's minor ports handle 20 per cent of the total cargo of the country. The State of Rajasthan, Madhya Pradesh, Western Uttar Pradesh, Delhi, Haryana, Punjab, Himachal Pradesh and Jammu & Kashmir, which constitute 35% of the total exports, are potential customers for Gujarat ports.

The Kandla port in Gujarat has emerged as the largest cargo-handling port. In 2007-08, it handled the traffic of 64.89 million tonnes (mt). State has six direct berthing commercial ports, 14 direct berthing captive port terminals, 11 lighter age cargo ports.

Other ports in the state, the Gujarat Pipavav Port at Pipavav (Saurashtra) and the recently commissioned Gujarat Adani Port at Mundra (Kutch) were the country's first Greenfield ports to be developed on a Build-Own-Operate-Transfer (BOOT) basis. Mundra is a state-of-the-art port that facilitates berthing of large vessels while Dahej in Gujarat is the country's only chemical handling port. It is estimated that by 2015, Gujarat's ports will handle 39 per cent of the country's total cargo.


Gujarat comes under Western Railways of Indian Railways. Vadodara is the busiest railway station in Gujarat. Indian Railways is planning Delhi-Mumbai dedicated rail freight route passing through the state. Government of India is also planning $100 billion Delhi-Mumbai industrial corridor project on the lines of this freight corridor.

Road Transport: Gujarat also has a wide road network spanning across 74,000 km. It is also well connected by rail with 5,310 km of rail lines.

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One of the most popular public transports in Gujarat is the City Bus. The only problem that can surface with the city buses is that the bus numbers and the route information is given in Gujarati. Gujarat State Road Transport Corporation (GSRTC) is the primary body responsible for providing these services. It is a public transport corporation providing bus services and public transit within Gujarat and to the other states in India. Apart from this, there are a number of services provided by GSRTC.

  • Mofussil Services - it connects major cities, smaller towns and villages within Gujarat.
  • Intercity Bus Services - It also connects major cities - Ahmedabad, Vadodara (Baroda) and Rajkot.
  • Interstate Bus Services - it connects various cities of Gujarat with the neighbouring states of Madhya Pradesh, Maharashtra and Rajasthan.
  • City Services - GSRTC also provides city bus services at Surat, Baroda, Rajkot, Gandhinagar and Ahmedabad, within the state of Gujarat.
  • Parcel Services - this service is used for transporting goods.

Apart from this, the GSRTC provides special bus services for festivals, industrial zones, schools, colleges and pilgrim places. Bus Rapid Transit System (BRTS) has been jointly implemented by the government, Development Board (GIDB), Ahmadabad Municipal Corporation (AMC) and Ahmadabad Urban Development Authority (AUDA). The total network of BRTS is 380 Km out of which 20 percent work was completed by August 2007 and it is envisaged that the project will complete by the year 2010.


To cope with the shortage and uneven supply of water throughout the state, it is proposed to develop water grid. The government is planning to cover 75 per cent population through the grid by 2010.

The Sardar Sarovar project will provide assured irrigation to 1.8 million hectares in Gujarat with water for domestic and industrial use in about 8,215 villages and 135 townships.

The state has undertaken extensive canal construction to supply water to the arid regions of Kutch. Also underway is Kalpasar, a multipurpose project that aims to build a dam across the Gulf of Khambhat with a tidal reservoir of 872 sq km. According to the new port policy, the state is envisaging the development of 10 Greenfield sites.

In regard to this, the government passed the Gujarat Water Users' Participatory Irrigation Management Bill in the year 2007 authorising the farmers to constitute Water Users' Associations (WUA) for management of canals handed over, after rehabilitation by the Government.


TThe state has made lot of advancements as far as the Telecom infrastructure is concerned.

Key Points

  • Gujarat State Wide Area Network (GSWAN) is the world's second largest IP-based WAN connecting over 2,800 government offices.
  • Each of the district headquarters has been provided with the back-up support of transportable V-SAT terminals.
  • Secretariat Integrated Communication Network (SICN) has more than 7,500 voice connections.
  • Now the redressal of grievances of citizens can be done over the Internet itself through State Wide Grievance Attention on public grievances by application of Technology (SWAGAT).
  • Integrated Work flow and Document Management System (IWDMS) has helped in streamlining the process of documentation in the government office.

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Social Infrastructure


Gujarat has 13 universities and 4 agricultural universities. Gujarat also has an Indian Institute of Management, at Ahmedabad, National Institute of Design, at Ahmedabad and a National Institute of Technology at Surat. A new Indian Institute of Technology has been started in Gandhinagar.


There are total 29 universities in Gujarat as on March 1, 2009. This includes the recent Ahmedabad University, Kadi Sarva Vishwavidyalaya and Navrachana University. The Government of Gujarat has already given the approval to these three universities and the enrolment will begin in June 2009.

Health Care

The state currently has 1,072 Primary Health centres (PHC), 7,274 Sub centres, 273 Community Health centres (CHC) and 85 mobile health care units. In the area of health care delivery services, public private partnerships are taking place. Chiranjeevi Scheme has been introduced by the government in the wake of reducing the rate of maternal and infant mortality. As per the scheme, the government and private sector specialists will collaborate and jointly work towards providing safe child delivery services. The scheme has been especially implemented for socially economic weaker sections.


Maternal Mortality Rate (MMR)

389 (2005) 172 (Aug 2007)

Infant Mortality Rate (IMR)

64 (2005) 54 (Aug 2007)

No. of private specialists enrolled

801 (till August 2007)

No. of deliveries by private specialists

95,066 (till August 2007)

Lives saved under Chiranjeevi Scheme

548 mothers and 3 443 new born

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Industrial Infrastructure

Gujarat has 182 industrial estates established by Gujarat Industrial Development Corporation. Industrial estates are set up on non-agricultural land after assessment of industrial viability The State has a software technology park at Gandhinagar. GIDC plans to set up an apparel park in Surat. Additionally, GIDC has developed an industrial park in Dahej, which includes a petrochemical complex with facilities like a private airstrip, effluent collection and disposal, a liquid chemical port and railway lines.

To encourage investment in the state, Gujarat also gives autonomy and funds to industrial estates to implement maintenance and modernisation measures. It is also encouraging organisations to set up units in these zones by giving them tax holidays and subsidies like exemption from stamp duty and registration fees.

The manufacturing industry of Gujarat has a good support system with 312,000 small and 2,200 medium units. Overall, it has 83 product clusters out of which many are successful such as Ceramics cluster (Morbi), Brass parts cluster (Jamnagar), Fish Processing Veraval) Power Looms Ahmadabad). The state government launched the Cluster Development Scheme for furthering the growth of product clusters.

The State has set up Special Economic Zones (SEZs) at Kandla and Surat. It has 55 approved SEZs (44 sectors specific and 11 multi-products) as on September 2008). Its current status of SEZ is that it has 10 functional and 15 notified special economic zones out of which 22 have got formal approval while 8 have been approved in principle. It is the leading SEZ state with highest geographical area spanning over of over 15,000 hectares. Chief upcoming SEZs are Reliance SEZ (chemicals and petrochemicals), Pharmez (pharmaceuticals) and Essar Hazira SEZ (engineering). Gujarat is the maiden state to come up with a policy related to SEZs which includes flexible labour laws and exit options for investors.

Types of SEZ


Chemicals 2
Power 2
Gems and jewellery 1
Ceramics and glass 1
Biotechnology 1
Handicraft 1
Multi service 3

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Urban Infrastructure

Conventional fuel used in buses and auto rickshaws has been replaced by Compressed Natural Gas (CNG). 90 CNG stations have already been established and at present nearly 535 CNG buses and 31,513 CNG auto rickshaws are operational. In Ahmedabad, it has been made a mandatory rule to run only CNG based auto rickshaws.

The riverfront wants to improve the development of commercial, residential and recreational facilities.

Sabarmati and Tapi rivers revitalise the City thanks to the around infrastructures development.

Suitable measures have been taken up for ensuring energy efficiency and solid waste management. Gujarat is looking forward to develop new commercial, residential and recreational facilities. Sabarmati River Front Development Corporation has been honoured with Prime Minister's Award for Excellence in Urban Planning and Design for development along the Sabarmati River.

The State Government has implemented an Infrastructure development board (GIDB), Ahmedabad Municipal Corporation (AMC) and Ahmedabad Urban Development Authority (AUDA).

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More Information on Gujarat

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