Gujarat attracted highest investment in manufacturing sector in 2023: Colliers report

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GANDHINAGAR: India’s manufacturing sector is poised to scale up to $1 trillion by 2025-26 and the state of Gujarat is expected to play a significant role in achieving this milestone.

As Gujarat gears up for the upcoming 10th Vibrant Gujarat Global Summit, the study done by Colliers India found that the western state achieved the highest investment in the manufacturing sector in the year 2023. Maharashtra and Tamil Nadu follow Gujarat, according to the study conducted by the professional services and investment management company.

Discussing Gujarat’s role in becoming India’s manufacturing hub, Swapnil Anil, Executive Director and Head of Advisory Services at Colliers India, noted that Gujarat’s prowess in the sector is attributable to its pro-industry policies.

“With the new industrial policy, Gujarat allocates approximately 34.7 per cent of incentives and benefits specifically for the manufacturing sector. This percentage is exclusively designated for manufacturing, which boasts the lowest average setup cost among all states. As a result, Gujarat has attracted investments exceeding Rs 30,000 crores in 2023 from domestic and foreign manufacturers. These investments will strengthen the state’s industrial footprints,” Anil said.

Gujarat’s lowest unemployment rate, standing at 4 per cent, also makes it an attractive destination for numerous new industries to establish their operations, Anil added.

“The state’s appeal is further enhanced by its well-developed ports, robust connectivity, stable governance, affordable land availability, prompt decision-making, ample labour supply, business-friendly environment, and supportive policies, all of which contribute to keeping Gujarat at the forefront in this competitive landscape,” he continued.

With a 1600 km-long coastline and major ports such as Kandla, Mundra, Pipavav, and Hazira, Gujarat solidifies its position as a logistics powerhouse, handling a total container throughput of 505 million tonnes.

The tenth edition of the Vibrant Gujarat Global Summit, initiated by Prime Minister Narendra Modi in 2003 to put Gujarat on the world map of trade and industry, will be held from January 10 to 12, 2024. The Summit event will be inaugurated by PM Modi on January 10.

As a precursor to the upcoming Vibrant Gujarat Global Summit, an event focusing on the petrochemical sector of the state is set to be organized in Bharuch this Saturday. Gujarat holds a share of 41 per cent of India’s total chemical and petrochemical exports, accounting for 5 per cent of India’s total and 27 per cent of Gujarat’s total exports, respectively. (ANI)

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