Colliers Report: Gujarat leads in manufacturing sector investments for 2023

Gujarat has emerged as the leading destination for investment in the manufacturing sector in 2023, according to a report by Colliers India. As India aims to scale up its manufacturing sector to USD 1 trillion by 2025-26, Gujarat is expected to play a crucial role in achieving this goal. The study indicates that Gujarat attracted the highest investment in manufacturing, followed by Maharashtra and Tamil Nadu.

The Executive Director and Head of Advisory Services at Colliers India, Swapnil Anil, highlighted Gujarat's success in the manufacturing sector, attributing it to the state's pro-industry policies. Gujarat allocates approximately 34.7% of incentives and benefits specifically for the manufacturing sector, boasting the lowest average setup cost among all states. In 2023, the state attracted investments exceeding Rs 30,000 crores from both domestic and foreign manufacturers.

Anil also pointed out that Gujarat's low unemployment rate of 4% makes it an attractive destination for new industries. The state's appeal is further enhanced by well-developed ports, robust connectivity, stable governance, affordable land availability, prompt decision-making, ample labor supply, a business-friendly environment, and supportive policies.

Gujarat's strategic geographical location with a 1600 km-long coastline and major ports such as Kandla, Mundra, Pipavav, and Hazira positions it as a logistics powerhouse, handling a total container throughput of 505 million tonnes. The upcoming 10th Vibrant Gujarat Global Summit, scheduled from January 10 to 12, 2024, is expected to showcase the state's economic prowess. Prime Minister Narendra Modi will inaugurate the summit, which was initiated in 2003 to put Gujarat on the world map of trade and industry.

In preparation for the summit, an event focusing on the petrochemical sector in Bharuch is set to be organized, highlighting Gujarat's significant share of 41% in India's total chemical and petrochemical exports, accounting for 5% of India's total exports and 27% of Gujarat's total exports.