Why is Gujarat the best destination for Industrial Investments in 2020 ?

  • Under the leadership of Chief Minister Shri Vijay Rupani, Gujarat achieved Foreign Direct Investment (FDI) of Rs.24,012-crore within the 1st six months from April to Sept. of 2019-20. 
  • This is double the FDI of Rs.12,618-crore received within the financial year 2018-19. Numerous facilities are being provided to the industries and also the service sector as per the set criteria to market ease of doing business. 
  • This information has been obtained from the report generated by the Gov. of India’s Department for Promotion of Industry and Internal Trade.
  • Industrialists seeking to line up industries in Gujarat have gotten land and necessary approvals simply. Government of Gujarat has created arrangements for on-line acceptance of applications. 
  • Along with clear administration, Chief Minister Shri Vijay Rupani has centered on easy of doing business within the state that has led to Gujarat achieving this claim. 
  • Recently Gujarat is considered as the manufacturing and automobile hub of India. Gujarat witnesses’ a bigger inflow of new investments in manufacturing sector. 
  • Govt. of Gujarat under CM Vijay Rupani has set a new definition of good governance. By implementing the No Pendency and People Friendly-Industry Policy, the scope of investment in Gujarat has been created freed from hurdles.
  • In the last 3 years, out of 2,574 massive industries set up across the country, 735 massive industries have been set up in Gujarat. 
  • With the progressive industrial policies of the Govt. of Gujarat, Gujarat has created a new record by achieving the highest foreign investments within the country with Rs.1,41,161- crore from April 2000 to Sept. 2019.


Gujarat is one of the few states in the country that has drawn such industrial policies, making it the most preferred destination not only for investors of the country but also for the foreign investors. Gujarat has recently added one more feather of achievement by acquiring greater share of investment intentions from the industrial sector. In the report released by the Department for Promotion of Industry and Internal Trade, Government of India, it has been stated that Gujarat achieved double Foreign Direct Investment in the first 6 months (from April 2019 to September 2019) of 2019-20 as compared to the FDI’s achieved in the entire previous financial year.

Furthermore, in a report released by the Department for Promotion of Industry and Internal Trade a few months ago, it is stated that Gujarat is at the forefront of industrial investments with a share of 51% registered IEMs (Industrial Entrepreneur Memorandum) in India. The influx of a large amount of investment from within the nation as well as internationally, demonstrates the efficiency of industrial policies of the Government of Gujarat in the last three years. In another noteworthy fact, despite being only 5% of the total population of India, Gujarat contributes 7.3% to the total GDP of the country which shows the commitment of the state government towards the growth of the state, it's economy and labour force. The government's action plan, the role of the public and private sector, and the status of foreign entrepreneurs and foreign capital investment are considered as the basic pillars for industrial development. These recent achievements of Gujarat in the industrial sector demonstrate that the Government of Gujarat has highly emphasized on the inclusion of these three important factors in its policies.

Apart from attracting the industry with the effective implementation of its progressive industrial policies, the Government of Gujarat is also emphasizing on start-ups. The state government under the leadership of Chief Minister Shri Vijay Rupani has effectively implemented policies like Start-up Policy 2015, IT & ITeS & Electronics Start-ups Policy, Student Start-up Innovation Policy to promote start-ups which has made Gujarat the most preferred destination for establishing a start-up. Today, Gujarat has emerged as the start-up hub of India with a share of 43% funded start-ups. 


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