Gujarat Set To Contribute More To National Economy: CM Bhupendra Patel

The goal of the Prime Minister is to make India a $5-trillion economy by 2027. How will the Vibrant Gujarat Global Summit 2024 help achieve it?
Prime Minister Narendra Modi has set a vision to make India a $5-trillion economy in the coming years. The government has taken several proactive initiatives, including Aatmanirbhar Bharat, PM Gati Shakti Master Plan, the production-linked incentive scheme, transparent and predictable tax system, reducing compliance burden, ease of doing business, ease of living, and Make in India, to realise that dream. Keeping his vision in mind, Gujarat has also set a target to contribute 10 per cent   or more to the national economy by 2026-27.

One initiative that was conceptualised in 2003 by Modi, who was then chief minister of Gujarat, was the Vibrant Gujarat Global Summit (VGGS). What began as a modest event in 2003 has evolved into one of the most reputed global forums for business networking, knowledge sharing, and strategic partnerships for inclusive growth and sustainable development.

Since its inception, the summit has played a significant role in attracting investments to the state. Due to investor-friendly policies and a conducive industrial atmosphere, an impressive 1,04,872 projects were proposed through MoUs and investment intentions from 2003 to 2019, which we consider a resounding success of the summit.

Further, in the run-up to the VGGS 2024, as of November 20, 2023, Gujarat has inked MoUs with over 55 companies, anticipating the creation of job opportunities in various sectors.

Under the Ease of Doing economic initiative, Gujarat has implemented a number of measures to enhance the state's economic environment. Could you please elaborate?Gujarat’s robust industrial infrastructure gives the state an edge over other places. The development of special investment regions, logistical hubs, and dedicated industrial parks helps companies launch operations quickly and effectively while also lowering operational costs for them. The state's strategic location on India's western coast ensures excellent connectivity via ports, roads, and air links, making Gujarat a pivotal trading hub. Important ports like Mundra, Kandla, and Dahej simplify logistics for companies seeking international expansion.

The government has formulated policies across 20 sectors on a par with other global policies, which cater to the needs of industry players. We were the first state in India to introduce a dedicated semiconductor policy.

The Gujarat Single Window Clearance Act, 2017 aims to facilitate a process for the speedy issuance of various licences, clearances, and certificates required for setting up a business unit.

The theme of VGGS 2024 is ‘Gateway to the Future’. 

Which newly-developing areas would your government prioritise to draw in domestic and foreign investment?
We are eager to explore more about emerging sectors such as semiconductors and ESDM, green ammonia and hydrogen, renewable energy, aerospace and defence, AI, IOT, fintech, cybersecurity, hi-tech manufacturing, and consumer products, in addition to all currently operating sectors. We are aggressively cultivating an all-encompassing ecosystem, with a focus on fuel cells, electric vehicle production, green ammonia, and battery storage.

Recently, the PM discussed his plans for a ‘Blue Economy’, which are part of his Maritime Amrit Kaal-Vision 2047. How does Gujarat intend to become a global leader in the blue economy?
Gujarat was a pioneer in the marine sector and is quickly becoming a global leader in the ‘Blue Economy’. Gujarati ports led the Logistics Ease Across Different Status (LEADS) Index in FY 2022–2023 with their 5,538 lakh MTPA contribution to national marine traffic. The state is becoming an important ship-building destination in South Asia. Furthermore, the ship recycling plant located in Alang is among the biggest worldwide, accounting for over 30 per cent of global recycling volume and around 98 per cent of India's total recycling capacity.

In addition, the Gogha-Hazira Ro-Pax ferry service, which cuts the travel time from 10–12 hours to 3–4 hours, marks the start of a significant revolution in the transportation industry. In order to highlight India's rich and varied maritime grandeur, the National Maritime Heritage Complex (NMHC) is being built in Lothal. It would be the first facility of its type in the nation. With one main port, 48 minor ports, and a 40 per cent share of the country's cargo handling, Gujarat is well-positioned to be a key player in the global blue economy.

Could you provide more details about Gujarat's efforts to promote renewable energy and the green hydrogen sector, and how the state is positioned to become a leader in India's green economy?
Gujarat's renewable energy capacity has crossed 22 GW, which is 15.5 per cent of India's total renewable energy capacity. We are also developing the world's largest hybrid renewable energy park in Kutch. Not only this, but we have also set a target to generate 100 GW of renewable energy under our Green Hydrogen Mission. Recently, we launched the Gujarat Renewable Energy Policy to promote wind, solar, and hybrid technology-based renewable generation projects.

Having the longest coastline in India and an abundance of renewable energy resources, our goal is to fully realise our potential for the production and export of green hydrogen.

Gujarat has also earmarked 1.99 lakh hectares to five companies for the development of a RE power plant for green hydrogen production.

Gujarat is blessed with a diverse natural, cultural, and geographical history. What steps are being taken to boost the state's tourism industry?
Gujarat's tourism sector has grown remarkably in the past two years. The state has continuously seen an increase in the number of international visitors, with Gujarat leading the way with 20.70 per cent of all foreign visitors to India in 2022. Gujarat ranks among the top five destinations in India for domestic tourism. Gujarat welcomed 15.40 lakh international visitors as of August 2023; by December 2023, it is expected that this number would have risen to two million.

The first Indian city to be listed as a World Heritage Site by UNESCO was Ahmedabad, a historic walled city. In Kevadia, the ‘Statue of Unity’ has become a popular tourist destination. In addition, as part of the 'Development of Iconic Sites' project, we are actively prioritising famous sites like Dholavira, a UNESCO World Heritage Site. The coveted title of 'Best Tourism Village' has been bestowed on Dhordo Village in the Kutch area by the United Nations World Tourism Organization (UNWTO). The community is well-known for holding the Rann Utsav every year. The state's heritage, historical, religious, spiritual, environmental, and adventure tourism sites can now be more easily explored by foreign visitors, thanks to the innovative 'Atithyam' portal designed by our government.

The diamond sector will see new opportunities with the building of the Surat Diamond Bourse. How can we meet the growing demand for skilled labour in this industry?
The diamond industry in Gujarat plays an important role in creating job opportunities, catering to both skilled and unskilled workers. With a workforce exceeding 9,00,000 people, this sector makes a significant contribution to our state's overall economic development. Dream City has been built in Surat to accommodate the expanding needs of the diamond industry in residential and commercial areas, as well as to support the growth of the Diamond Trading Company. The Surat Diamond Bourse would be India's second diamond trading hub, offering direct employment to 1,50,000 individuals. Since a highly skilled workforce is required, the Indian Diamond Institute (IDI) was established in Surat. Through comprehensive education, the institute, which specialises in different elements of diamond creation and manufacturing, hopes to improve India's competitiveness in jewellery design and worldwide quality standards. Gujarat is also spearheading several initiatives to promote the lab-grown diamonds sector, including R&D support to develop indigenous technologies and skill development support to encourage skill upgradation for the existing workforce.

WHO has established its Global Centre of Traditional Medicine in Jamnagar. In what way will your government explore the medical value travel market?
The establishment of WHO's Global Centre of Traditional Medicine (GCTM) in Jamnagar is a testament to our recognition of traditional medicine's key role in healthcare. The WHO-GCTM, with representatives from over 80 traditional systems worldwide, will tackle challenges in regulation and integration. This UN outpost strengthens Jamnagar's global position, ensuring universal access to quality healthcare and essential medicines. Further, Gujarat offers an opportunity to combine medical treatment with tourism and pilgrimage.

Gujarat is regarded as the country's hub for pharmaceuticals and has the ability to become a global leader. How do you plan to promote the pharmaceutical sector?
With a commanding 30 per cent share in India's pharmaceutical market and a substantial 28 per cent share in the country's pharmaceutical exports, our state's future is promising. The state is home to several major pharmaceutical companies. Some of the pharma companies in Gujarat have been expanding their global footprint through mergers and acquisitions with international companies and are setting up subsidiaries and marketing offices overseas.

We have diversified our business ventures to encompass generic production, R&D, contract research and manufacturing organisations, bulk drug manufacturing, and the development of new chemical entities, ensuring a bright future ahead. Additionally, our government has initiated a ‘Scheme of Assistance for Biotechnology Industry’ under the Gujarat State Biotechnology Policy to further support the pharmaceutical industry.

The Gujarat government launched a project called ‘Vibrant Gujarat Vibrant District’. In what ways has it encouraged investment around the state to link possible hubs with major investment events such as VGGS 2024?
The ‘Vibrant Gujarat Vibrant District’ festival was conducted in all 32 districts and four metro cities of the state, including Ahmedabad, Vadodara, Surat, and Rajkot, in October 2023. Through this initiative, we have successfully entered into 2,614 MoUs, which are expected to generate more than 1,70,800 job opportunities for our youth in the coming years. This initiative has led to the creation of a conducive district-level ecosystem while improving both investments and business activities.