According to a study conducted by the MSME Export Promotion Council, Gujarat has attracted nearly Rs 8 lakh crore in investment proposals over the last four years. Between 2018-19 and 2021-22, the proposals were made by the government, the Indian private sector, and foreign investors.
According to the study titled ‘Growth & Investment in Gujarat,’ the average annual gross state domestic product (GSDP) growth rate between 2015-16 and 2020-21 was approximately 12.87%, while the per capita GSDP increased at a compound annual growth rate (CAGR) of 14.38%.
“According to the Centre for Monitoring Indian Economy (CMIE) data, new investment projects worth Rs 3,97,654 crore were announced during 2021-22,” MSME EPC chairman D S Rawat said. During the same time period, Rs 30,675 crore was invested in projects. completed, and projects worth Rs 9,727 crore were resurrected. Total outstanding investment projects amounted to Rs 18,76,732 crore, with projects worth Rs 9,14,846 crore under construction.”
The study emphasised the importance of clearances in order to expedite projects and avoid cost overruns. The government announced projects worth Rs 46,671 crore through MSME EPC. According to the study, while the Indian private sector announced projects worth Rs 3,50,982 crore, foreign direct investments worth Rs 20,171 crore were announced during this period.
According to the national sample survey, Gujarat has 33.87 lakh micro, small, and medium enterprise (MSMEs) units, with 13.71 lakh women and 47.44 lakh men employed. Diamonds, organic and inorganic chemicals, ready-made garments, marine products, dyes and intermediates, and drugs are all represented by these units. and pharmaceuticals account for approximately 17% of total exports and employment.
The study said, “One of the biggest pain points of MSMEs is gaining access to affordable and timely credit. As a result, there is a need to provide handholding and a seamless experience in raising short-term working capital, unlocking trade receivables, and freeing cash flows.
