Gujarat Emerges as Top Manufacturing Hub, Targets $1 Trillion Valuation by 2025-26
Gandhinagar: As the 10th Vibrant Gujarat Global Summit approaches, a recent study by Colliers India projects India's manufacturing sector to reach a staggering $1 trillion valuation by 2025-26, with Gujarat spearheading this growth.
The comprehensive study reveals that Gujarat has secured its position as the most preferred destination for manufacturing investments in 2023. Maharashtra and Tamil Nadu follow closely in second and third places, showcasing the robust growth of the manufacturing sector across the country.
Gujarat's industrial prowess is highlighted by its 12.5% share of manufacturing in the state's export portfolio. The study emphasizes that the state allocates a significant 34.7% of overall incentives and benefits from industrial common policies specifically to the manufacturing sector.
With average rents around Rs 18.5 per sq ft per month and capital rates of approximately Rs 16.50 million per acre, Gujarat surpasses comparable states like Rajasthan and Madhya Pradesh. The state's extensive 1600 km-long coastline, coupled with major ports such as Kandla, Mundra, Pipavav, and Hazira, positions it as a logistics powerhouse, handling a total container throughput of 505 million tonnes.
Swapnil Anil, Executive Director and Head of Advisory Services at Colliers India, stated, "Gujarat's new industrial policy, allocating around 34.7% of incentives exclusively to the manufacturing sector, has attracted investments exceeding Rs 30,000 crores in 2023. This support, combined with the state's lowest average setup costs, enhances Gujarat's industrial landscape."
Gujarat currently stands as India's primary manufacturing center, with strategic policies, abundant resources, and an investor-friendly environment contributing to its success, as outlined in the Colliers study.
As the 10th Vibrant Gujarat Global Summit approaches, the state has inked several Memoranda of Understanding (MoUs). Notably, three agreements signed in October 2023 surpass a cumulative value of Rs 3,000 crore, spanning textiles, industrial parks, engineering, and the automotive industry.
