Gujarat emerges as manufacturing investment hub in 2023: Colliers findings – Times of India

Gujarat emerges as manufacturing investment hub in 2023: Colliers findings - Times of India

New Delhi: As Gujarat prepares for the upcoming 10th Vibrant Gujarat Global Summit Under the leadership of Chief Minister Bhupinder Patel, there is good news for this Indian state. Collier’s India Studies on India Manufacturing sector Growth forecasts that the country’s manufacturing market could touch $1 trillion by 2025-26, and Gujarat is expected to play a major role in achieving this milestone. According to the Colliers study, Gujarat scored the highest. investment in the manufacturing sector in the year 2023. Gujarat leads as the most preferred location for manufacturing, followed by Maharashtra in second place and Tamil Nadu in third place.
Highlights from the study
• In 2023, Gujarat to receive over Rs 30,000 crore investment in manufacturing sector.
• Gujarat is the most preferred location for manufacturing, followed by Maharashtra in second place and Tamil Nadu in third place.
• The Indian manufacturing market has the potential to reach a value of $1 trillion by 2025-26.
• Gujarat is positioned to become a manufacturing powerhouse in India.
Discussing Gujarat’s role in becoming India’s manufacturing hub, Swapnal Anil, Executive Director and Head of Advisory Services at Colliers India, shares, “With the new industrial policy, Gujarat has earmarked about 34.7% of incentives and benefits exclusively for the manufacturing sector. This percentage is earmarked exclusively for manufacturing, the lowest average set-up cost among all states. boasts of. As a result, Gujarat has attracted investments of over Rs. 30,000 crore by 2023 from domestic and foreign industrialists. These investments will strengthen the state’s industrial footprint.”
He added, “Gujarat has one of the lowest unemployment rates in the workforce, standing at 4%, making it an attractive location for several new industries to set up their operations. Availability of land, quick decision-making, sufficient Labor supply, business-friendly environment, and supportive policies, all contribute to keeping Gujarat at the forefront of this competitive landscape.”
As of now, Gujarat stands as the primary manufacturing hub in the country. The study highlights several factors contributing to Gujarat’s success, demonstrating the strategic alignment of policies, resources and investment-friendly environment. According to this study, the following reasons will ensure maximum contribution of Gujarat in making India a manufacturing hub.
Vibrant Gujarat Summit: A Global Economic Alliance
Over the past twenty years, the Vibrant Gujarat Summit has consolidated its position as the premier investment event in the country. With the highest success rate in converting significant investments and memorandums of understanding (MoUs) into actual projects, the Gujarat government’s summit stands as a landmark of international economic cooperation. Through this summit, the state government has understood the global industrial needs, resulting in the development of services and infrastructure. For example, the study says that Gujarat provides shared environmental infrastructure facilities covering 40% of the project cost with a maximum limit of Rs 50 crore. Moreover, it offers preferential rates for land use conversion, thereby attracting investors to choose Gujarat for their investments.
Strategic MoU for Strong Manufacturing Partnership
Demonstrating its proactive stance, Gujarat has signed several Memorandums of Understanding (MoUs) in the last six months, leading up to the 10th Vibrant Gujarat Global Summit. Among the various MoUs signed in October 2023, only three agreements have a total value of more than Rs 3,000 crore. Reflecting Gujarat’s forward-thinking management approach, these agreements cover diverse sectors, including textiles, industrial parks, engineering, and the automotive industry, reflecting the state’s commitment to promoting regional development. Highlight. Gujarat’s cost-effective labor facilities and supportive government policies have resulted in the benefits of industrial growth. Land prices in the state are competitively low compared to other regions, with excellent last-mile connectivity and strong infrastructure, including well-developed ports, roadways and railways. Additionally, Gujarat provides water, electricity, and renewable energy resources at more favorable rates than its counterparts.
Manufacturing dominance and incentive allocation
According to the aforementioned Colliers study, Gujarat highlights its expertise in industrial production, with manufacturing accounting for a substantial 12.5% ​​of the state’s export portfolio. The state allocates 34.7 percent of the total incentives and benefits of common industrial policies to the manufacturing sector, indicating Gujarat’s dedicated efforts to drive manufacturing growth. Additionally, Gujarat boasts competitive average rents (around Rs. 18.5 per sq ft per month) and attractive capitalization rates (around Rs. 16.50 million per acre), outperforming neighboring states like Rajasthan and Madhya Pradesh. With a 1600 km long coastline and major ports like Kundla, Mundra, Papawa and Hazira, Gujarat cements its position as a logistics powerhouse, handling a container throughput of 505 million tonnes.
FDI, labor relations, and government stability
Gujarat’s appeal spans the globe, with leading industries in automobiles, semiconductors, FMCG, and IT giving priority to the state. Similarly, there is a smooth coordination between the state’s labor force, corporate houses and the government, due to which Gujarat has the lowest number of strikes in the country. Moreover, the stability of governance in Gujarat over the last six terms creates a conducive and safe environment for both investors and developers.
Key areas of growth in India’s manufacturing sector include cutting-edge technologies, sustainable practices, Industry 4.0, greater emphasis on local manufacturing, integration of artificial intelligence (AI), adoption of 3D printing, and Internet of Things (IGO)-enabled devices. Actions are included. ). Additionally, emerging sectors include semiconductors, agricultural technology, and waste management, particularly e-waste, for which the government has developed various policy documents. Notably, Gujarat has already claimed leadership in most of these sectors in India. With these strengths, Gujarat is poised to maintain its position as a leading contender to become the primary contributor to India’s manufacturing market in the future.
Colliers, a leading and diversified company specializing in professional services and investment management, conducted this analysis as part of its study of investment and diversification activities in India’s manufacturing sector.

Business news,Vibrant Gujarat Global Summit,Manufacturing sector,investment,Gujarat,Collier’s Report
gujarat-emerges-as-manufacturing-investment-hub-in-2023-colliers-findings-times-of-india

Be the first to comment

Leave a Reply

Your email address will not be published.


*