Gujarat
Gujarat is situated in the north-west corner of India. The capital of Gujarat is Gandhinagar. Gujarat has a land area of 196,024 Sq. km with a population of 41.3 million. The per capita income in Gujarat is Rs 10,578 and the inflation rate is 9.7%. Gujarat ranks first in the country in the production of cotton and groundnut and second in tobacco production. The government lends strong support to private investments including policy investment and flexibility on policy. It has maintained consistent policy towards encouraging outside investments.
Incentives:
Capital investment subsidy of between 15% and 20% (up to Rs 1,000,000) for small-scale units
100% EOUs exempted from purchase and sales taxes on capital goods procured within the state
Special incentives for the purchase of environment-friendly plant and machinery
Capital subsidies and sales tax incentives for electronics industries
7-year sales tax relief of up to 100% of fixed capital for Category 1; 5 years (80%) for Category 2
Sales tax deferment for 9 years for up to 125% of fixed capital for Category 1
Sales tax incentives for up to 17 years for premier units
Incentives on 50% of the total expenditure on social infrastructure
Preamble
Gujarat has been the front-runner in the overall economic development of the country all these years, as is evident from the fact that with mere 6% of geographical area and 5% of the population of India, the state contributes to 21% of the country's exports and 6.42% of the national GDP at constant prices. If the decadal growth of performance of some of the Indian states vis-à-vis other Asian economy with that of Gujarat is compared, one gets quite an encouraging scenario. The industrial growth of Gujarat with a figure of 8.52% could be way ahead of many Indian states and other Asian Tigers viz. Singapore, Malaysia and Korea.
Manufacturing Sector
Over a period of time, the state has established itself as second to none, especially in case of manufacturing sector. The State has successfully carved out a formidable position for itself on the national map of manufacturing sector, as is reflected from the status of dominance in many areas pertaining to manufacturing.The illustrative list of some of the selected products, wherein Gujarat contributes significantly is as under:
