| |JULY 202219According to a report by KPMG, what contributed to boosting ease of doing business in the state of Gujarat and making it one of the most attractive destinations for Foreign Direct Investment were the key reforms by Gujaratrate of 9.7 percent since Financial Year 2012. However, the state of Maharashtra retained its position as the leading provider of services in India, with Maharashtra's services Gross Value Addition increasing by 12.6 percent/annum reaching Rs.15.1 lakh crore in Financial Year 2020. Higher Investment a Key PlayerWhat played a significant role in allowing Gujarat to outpace the other states of India in manufacturing growth during the period likely was the higher investment in the state. The state of Gujarat witnessed the highest level of capital investment in terms of gross fixed capital formation which is a measure of investments between Financial Year 2012 and Financial Year 2019, which was at a total of Rs.5.85 lakh crore. This was ahead of the state of Maharashtra that saw an investment of Rs.4.07 lakh crore over the period, while Andhra witnessed a cumulative GFCF of Rs.1.49 lakh crore.One of the most Attractive Destinations for FDIAccording to a report by KPMG, what contrib-uted to boosting ease of doing business in the state of Gujarat and making it one of the most attractive destinations for Foreign Direct In-vestment were the key reforms by Gujarat. This includes the smoother administration of incentive schemes, the introduction of a sin-gle-window for business clearness & the eas-ing of labor norms.Petroleum CapitalGujarat possessed a total installed power generation capacity of 38255.07 mega watts, as of April 2021. The major reason why the state of Gujarat is considered the petroleum capital of the country is owing to the presence of large refining capacity which is set up by private & public sector enterprises. World's Largest Producer of Processed DiamondsFurthermore, the state of Gujarat is the largest producer of processed diamonds in the world. It accounts for eighty percent of the country's diamond exports and seventy-two percent of the world's processed diamond share. Gujarat is not only the largest denim manufacturer in India but also the third largest manufacturer of denim, internationally. The state contributes sixty-five to seventy percent to the country's denim manufacturing. 42 Ports & 65 Notified SEZsThe state comprises forty-two ports, 18 domestic airports & one international airport. It also has a hundred and six product clusters and sixty notified special economic zones. As part of the $90 billion Delhi-Mumbai industrial corridors, large-scale investment is anticipated in the state of Gujarat. The state of Gujarat received the highest Foreign Direct Investment at $21.89 billion in Financial Year 2021, as per the Department for Promotion of Industry and Internal Trade, and stood at the top of all states with thirty percent of the total equity inflows. Total exports from the state of Gujarat were accounted for $63440 million in 2019-2020 and it was $60587 million in 2020-2021. Key sectors of the state are as follows: Gujarat has over three thousand and three hundred pharmaceutical manufacturing plants that contributed thirty to thirty-five percent to the country's pharma industry's turnover and around twenty-eight percent to the country's pharma export during 2018-2019. Seventy-nine APMCs (agricultural produce market committees) were linked with the National were linked with the eNAM (National Agriculture Market) as of March 2019.According to the Indian Ports Association data which was published in the month of June last year, the number of ports stood at forty-six, and between the months of April and November, last year, 73.86 million tonnes of cargo traffic were handled by Deendayal port. Known as the country's petrochemical & chemical hub, Gujarat possesses eight clusters, fourteen industrial estates & three Special Economic Zones. These are mainly dedicated to the chemicals & petrochemicals industry.
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