GUJARAT - INDUSTRIAL DEVELOPMENT POST INDEPENDENCE

By Vivek → Monday, 23 January 2017

Gujarat on the west coast of India is an important State having geographical area of 1,96,022 sq.km and population of 483 lakhs as per 2001 census. The State has accelerated its overall economic development during last 44 years and has witnessed structural change in economic development. The share of Primary, Secondary and Tertiary sectors has been at 19.3%, 39.2% and 41.5% respectively of the total Gross State Domestic Product (GSDP) which was at Rs. 83537 crore in 2001-02 at constant (1993-94) prices. The industrial sector has witnessed impressive development in small, medium and large and factory sectors. 

gujarat industrial development



Small Scale Industries



industries


Gujarat has continued to witness impressive development in the small scale sector. There were only 2169 small scale industrial units in 1961. The number of SSIs increased to 15,849 in 1970; 43,712 in 1980; 1,15,384 in 1990; crossed a figure of 2,50,000 and were at 2,51,088 in 2000. The number of small scale industrial units have increased to 2,78,656 by March 2003.
Ahmedabad leads among districts with highest number of small scale industrial units at 61,185 constituting 21.96% of total SSI units in the State. Ahmedabad is followed by Surat with 41509 units (14.90%) and Rajkot with 30,077 units (10.80%), thereby constituting 48% of total SSI units among these three districts. Besides, Valsad (17077), Vadodara (15873), Mehsana (14843), Kheda (13586), Bharuch (12766), Jamnagar (11846) and Bhavnagar (11196) have more than 10,000 small scale industrial units as on 31.03.2003.
Among different industrial sectors where small scale sector have witnessed impressive development include Textiles, Machinery and Parts and Metal Products. Textile sector with 60168 units continues to have prime position among SSI units. Machinery and parts (22931), Metal products (22218), Rubber and Plastic Products (11025), Non Metallic Mineral Products (10831), Basic Metal Industries (8007), Paper and Printing (7789) and Electrical Machinery and Apparatus (6023) are other important industrial sectors among SSIs.
Industries Commissionerate has been in the process of computerizing SSI registration data since 1993-94. The information of last eight years reveal that Gujarat has been getting an average Rs. 500 crore of investment every year in SSI Sector. 

Medium and Large Industries


large industries

All industrial units other than SSIs are covered as medium and large industries. An entrepreneur is required to get approval for such project from GOI under IDR Act. GOI has liberalized the procedure of granting approval . Since introduction of new procedure in July 1991, Gujarat has received 7319 Industrial Approvals comprising of 6431 Industrial Entrepreneurs Memorandum (IEM) Acknowledgements. Letter of Permission (LOP) for 100% Export Oriented Units (EOUs) and Letter of Intent (LOI). The total investment of all these proposals works out to Rs 2,19,688 crore. The State accounts for 16% in total projected investment in the country during post liberalization period.
Gujarat has introduced a system for ‘Monitoring of Industrial Approvals in order to know status of all these Approvals and provide assistance for expeditious implementation of the project. As on January 2004, there were 3791 projects with investment of Rs. 93927 crore have been implemented. In addition, 1448 projects with investment of Rs. 52839 crore are under implementation. These comprise of 890 projects having total investment of Rs. 805 in the investment range upto Rs. 5 crore, 497 projects with investment of Rs. 11426 crore in the investment range of Rs. 5 crore to Rs. 100 crore and 59 projects Rs. 24176 crore each having investment of above Rs. 100 crore.
The group-wise analysis of projects under implementation indicates that chemical and petrochemicals sector put together accounts for 23.4% of total investment underway. The other important sectors having investment in Gujarat include Electrical Tele & Electronic (19.73%), Glass Ceramic & Cement (7.01%) Infrastructure Project (6.54%) Textile (5.78%) Metallurgical industry (5.32%), Food Processing (4.19%) and other having (28.02%) 

Factory Sector
As regards factory sector, there were 3911 registered factories in 1960 employing 3.46 lakh workers. The number of factories increased to 12,456 with corresponding employment of 6.35 lakhs in 1980; 16820 factories with corresponding employment of 7.47 lakhs in 1990 and 26454 factories employing 8.66 lakh workers in 2000. The registered factories have increased to 27089 employing 7.78 lakh workers in 2001. There has also been a trend of industrial dispersal in the State. The districts having more than 1000 factories in each include; Ahmedabad (4916); Vadodara (2062); Surat (19116), Rajkot (1784), Bharuch (1510), Mehsana (1391) and Valsad (1291).
The results of Annual Survey of Industry for Gujarat State indicates that the fixed capital investment in factory sector has increased to 72088 crore in 2000-01 from Rs. 95 crore in 1960-61, the gross value of output has increased to Rs.127988 crore in 2000-01 from Rs. 365 crore in 1960-61, and the value added in factory sector has increased to Rs. 16868 crore in 2000-01 from Rs. 107 crore in 1960-61. The ASI results indicate that Gujarat’s share in all India during 2000-01 was at 10.73 in factories, 16.26% in invested capital 13.81% in gross value of output and 11.74% in net value added.
Among Industry Sectors, Petroleum, Petrochemicals and Plastic Products account for 41.62% share in total Industrial output in the State. This is followed by Chemical & Chemical Products with 10.98%, Food Product with tobacco with 9.94%, Machinery with Electricals with 6.65% Synthetic, Fibre Textile with 6.49%. Basic Metal Industries with 6.17%, Cotton Textile with 6.08%, Non-Metallic Mineral Product with 3.07%, Paper Product and Printing with 2.17% Transport Equipment and parts with 1.76% and others. All these groups put together account for 95% of total industrial output in the State. 

Incentives
Gujarat offered incentives in the form of Capital Investment Subsidy and sales-tax benefits. During 1990-91 to 2001-02, the State provided capital subsidy to 14,858 units aggregating total amount of Rs. 834.81 crore. Besides the State Government sanctioned sales-tax incentives to 13138 units with total amount of Rs. 5452.36 crore. 

Industries Corporations Progress
Gujarat Industrial Development Corporation has sanctioned 249 industrial estates as on 31.3.2001 and has acquired 24533 hectares land for development of these Estates. GIDC has allotted 13158 hectares plot area and 12147 industrial sheds to industrial units in the Estates.
There were 35082 industrial units till 31st March 2002. Similarly, Gujarat Industrial Investment Corporation Ltd. Has sanctioned Term Loan of Rs. 2503 crore among 3963 industrial units till 31.3.2001. 

Natural Resources
Gujarat is endowed with good natural resources, which include minerals, marine, agriculture and live stock.
The important minerals in the State include: limestone, coal, lignite, fire clay, dolomite, marbles, granite and oil.
Gujarat is an important maritime State having suitability for Aquaculture. During 2002, the State produced 5.58 lakh tones of fish comprising of 5.33 lakh tones of marine fish and 0.25 lakh tones inland fish production. Out of the total production of Rs. 1292 crore, the State exported fish worth Rs. 398 crore. Gujarat is also continued to keep its leading position.
agriculature development

Among agricultural resources, Gujarat is important producer of rice, wheat and maize among cereals, tur, and gram among pulses production, ground nut, rape-seed and castor among oil seeds, besides, cotton, tobacco and sugar cane among commercial crops. Gujarat is also important producer of mango, chiku, citrus and papaiya, among fruits, while potato, onion, tomato and cluster beans are important vegetables; chillies, fenne, isabgul and cumins are important spices produced in the state.


Infrastructure
The present installed power generation capacity is at 8845 MW. In addition power generation capacity of 8683 MW is under implementation.
The Sardar Sarovar Project of Narmada Canal, 1079.85 Km length of construction was completed or under implementation. In addition 2142 Km. length of Canal’s construction is to be proposed which is provided 3980 Million Litre per day in 2021.
transporation infrastructure

The State has witnessed good progress in road construction. The total road length as on 31.03.02 was 74031 kms comprising of National Highways, State Highways, District Mahor Roads and others. The State Government has introduced policy for private sector participation for road development. Similarly there was also been important development in Port section. Of the ten new Ports identified for green field development. Mundra in Kachchh has become operational besides Pipavav in Saurashtra, Maroli, Dholera and Dahej are under implementation.
The State Government has worked out Infrastructure Development Plan VISION-2010 covering 383 infrastructure projects in power, port, industrial parks, road, railways and urban infrastructure sector within estimated total investment of Rs. 1,16,993 crore. The projects implementation work has been on hand.


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