Gandhinagar, Dec 21: As the state gears up for the 10th Vibrant Gujarat Global Summit, Colliers India’s comprehensive study on the country’s manufacturing sector reveals that the manufacturing market could soar to a $1 trillion valuation by 2025-26, with Gujarat playing a pivotal role in this achievement.
The study unveils that Gujarat attracted the highest investment in the manufacturing sector in 2023, securing its position as the most preferred destination for manufacturing, followed by Maharashtra and Tamil Nadu in second and third places, respectively.
The Colliers study underscores Gujarat’s industrial production expertise, with manufacturing accounting for a substantial 12.5 per cent share of the state’s export portfolio. Gujarat allocates a 34.7 per cent overall incentives and benefits from industrial common policies specifically to the manufacturing sector.
The state’s average rents (approximately Rs 18.5 per sq ft per month) and capital rates (around Rs 16.50 million per acre) surpass comparable states like Rajasthan and Madhya Pradesh. Gujarat’s 1600 km-long coastline and major ports, including Kandla, Mundra, Pipavav, and Hazira, solidify its position as a logistics powerhouse, handling a total container throughput of 505 million tonnes.
Discussing Gujarat’s role in becoming India’s manufacturing powerhouse, Swapnil Anil, Executive Director and Head of Advisory Services at Colliers India, said, “Gujarat, with its new industrial policy, has allocated approximately 34.7 per cent of incentives and benefits exclusively to the manufacturing sector.
This dedicated support, combined with the state’s lowest average setup costs, has attracted investments exceeding Rs 30,000 crores in 2023, from both domestic and foreign manufacturers, further enhancing Gujarat’s industrial landscape.”
At present, Gujarat stands as the primary manufacturing centre in India, with various factors contributing to its success, including strategic policies, resources, and an investor-friendly environment, as outlined in the Colliers study.
Several key factors are poised to ensure Gujarat’s significant contribution to establishing India as a manufacturing hub.
In the months leading up to the 10th Vibrant Gujarat Global Summit, Gujarat has entered into several Memoranda of Understanding (MoUs). Notably, three agreements signed in October 2023 exceed a cumulative value of Rs 3,000 crore, spanning various sectors such as textiles, industrial parks, engineering, and the automotive industry.