The Hindu Business Line : Growth engine gathering steam

Gujarat, the land of Mahatma Gandhi and Sardar Vallabhbhai Patel who charted the course of India's independence and reintegration into a nation, is on the roll again. The western coastal State, which accounts for only 5 per cent of the Indian population but contributing 21 per cent in exports and 13 per cent industrial production, is set to become the growth engine of Indian economy in the 21st century.

To galvanise this effort, the Gujarat Government is organising the fourth edition of `Vibrant Gujarat: Global Investors' Summit 2007' on January 12-13. This is an attempt to showcase the culture and tradition of the State by blending them with commerce, trade and enterprise for which the Gujaratis are well known across the world. The two-day summit is being organised at Science City near Ahmedabad.

The nodal agency for the meet is the Industrial Extension Bureau (iNDEXTb) in association with the State Government and the Federation of Indian Chambers of Commerce and Industry (FICCI), while international consultancy firms Mott MacDonald and Ernst & Young are the official advisors. The role of iNDEXTb, set up in 1978, has been to co-ordinate between the State and Central governments, various associations and chambers of commerce and industry, attracting investments in industrial and infrastructure projects through a single-point contact for investments by the NRIs and foreign direct investments (FDIs) and monitoring implementation of industrial approvals.

As the marketing extension of the State Government, it also assists Small and Medium-scale Entrepreneurs (SMEs) to scout for technology sourcing and transfer.

With a number of Special Economic Zones (SEZs) coming up in different sectors, Gujarat is also poised to emerge as the country's SEZ capital.

Academic, rural development

With the Gujaratis' legendary business and trade acumen, the State has attracted talent in diverse fields. It has some of the best-known names in academic and research circles, including the Indian Institute of Management-Ahmedabad (IIM-A), National Institute of Fashion Technology (NIFT), National Institute of Design (NID) and the Entrepreneurship Development Institute (EDI).

In the areas of rural development, AMUL and the Institute of Rural Management-Anand (IRMA) have given Gujarat a national image, both of which have become brands in themselves and a byword for implementation of revolutionary concepts.

It also boasts of some 30 engineering colleges, 26 management schools and nearly 300 other technical institutes. Additionally, now the State is going to have a university each dedicated to petroleum research and seismic research, both at Gandhinagar, and a third one for shipbuilding in Kutch.

The State has a well-developed infrastructure in health that attracts many foreigners, NRIs, particularly the NRGs, to avail themselves of the affordable medical treatment at the multi-specialty hospitals and nursing homes run by the private sector.

With Gujarat having an average 12 per cent growth over the last few years in agriculture against just 2 per cent nationwide, the State is already leading India in what can be called a "Second Green Revolution", that is now shaping up outside the northern States such as Punjab and Haryana, which made the First Green Revolution possible in the 60s and 70s. Marking an annual industrial growth of 15 per cent and industrial production worth $4.4 billion, Gujarat has outpaced most other States.

This progress has been due to the exploitation of abundantly available natural resources such as minerals, oil and gas, marine, agricultural and livestock resources.

Resilient Kutch

Kutch district, which witnessed a major earthquake in 2001, has now metamorphosed with modern urban planning dotting its various towns that have not only been rehabilitated, but also emerged as industrial hubs in their own right.

The transformation of Kutch from a district of traders to one of industrialists is also reflected now in the Gujarat Chamber of Commerce and Industry (GCCI) where leading industrialists have occupied pride of place as office-bearers.

Two of the country's largest oil refineries are also in Gujarat at Jamnagar. The continuing discovery of oil and gas struck here has also encouraged setting up of fertiliser and petrochemical plants.

Diverse sectors

While Gujarat already boasts of having the country's largest privately run port at Mundra, a number of other ports are also coming up along the 1,600-km long coastline. At present, the State has 41 ports and 11 airports.

Once known for its textile businesses, the State has diversified into different sectors such as pharmaceuticals.

Gujarat is now a leading producer of various industrial products in the country such as refined petroleum products (50 per cent), soda ash (98 per cent), caustic soda (28 per cent), phosphate fertilisers (45 per cent), polyester filament yarn or PFY (55 per cent), sponge iron (31 per cent), salt (68 per cent), cement and sugar (9 per cent each).

Ideal destination

In view of this predominant agricultural and industrial scenario, Gujarat has emerged as an ideal destination for attracting investments from diverse businesses and industries. This year the summit has further widened its scope in this regard.

Some of the sectors that the summit will focus on include agro and food processing; chemicals, petrochemicals and pharmaceuticals, engineering, auto components and ceramics, SEZs and port-led development, power, oil and gas, gems and jewellery, medical tourism, biotechnology, information technology, urban development and tourism.