Because of the Vibrant Gujarat Summit’s success, Gujarat has been compared to Davos, Switzerland, the site of the World Economic Forum Summit, earning the nickname “Davos of the East.” The Vibrant Gujarat Global Summit, which takes place this year from January 10–12, is an international celebration of the Gujarat Model that will be attended by prominent figures from around the world, including state heads like Sheikh Mohamed bin Zayed al Nahyan of the United Arab Emirates, prominent global investors, and CEOs of significant domestic and international companies.
There’s reason for the excitement. The state’s economy was in ruins twenty years ago, prior to the biannual Vibrant Gujarat event. With the devastating impact of the 2001 Bhuj earthquake and the subsequent Godhra riots, which resulted in a significant loss of life and property and created an undesirable impression for investors, a sense of hopelessness had taken hold of the country. By this time, the state was severely damaged by power outages, droughts, and comparatively inadequate infrastructure and connections.
However, since the first Vibrant Gujarat event, which was organized by then-Chief Minister Narendra Modi, twenty years have passed, and the state’s fortunes have changed dramatically. Gujarat’s remarkable industrial production, its socio-economic indices, and the condition of its infrastructure all show this abrupt turnabout.
Gujarat is now one of the states with the quickest rate of growth, the fourth biggest in terms of GDP, and has the best rating for ease of doing business in India. The state’s gross state product (GSDP) increased by a staggering 2400 percent, from around $11 billion in 2001 to over $272 billion in 2022. The per capita income is now $3,529, which is more than the $2,847 national average. Gujarat is also the greatest contributor to the nation’s overall exports, accounting for 33% of pharmaceutical production capacity and 77% of petroleum oil exports. Additionally, in 2022–2023 it constituted 17% of the foreign direct investment (FDI) flows into India.
In the four years leading up to 2023, Gujarat has drawn investments totaling around Rs 8 lakh crore, or $96 billion. Gujarat has secured significant investment promises totaling $86 billion in the run-up to the summit. Contrast this with the first Vibrant Gujarat edition from 2003, which suggested investments totaling Rs 66,000 crore. These agreements, which cover important industries including energy, oil and gas, and chemicals, include 58 businesses, including a joint venture with steelmaker ArcelorMittal. With a total commitment of Rs 20 lakh crore in the two editions of 2017 and 2019, government officials reported an average execution rate of 75%, which they said could not have been achieved without systemic overhauls. This further demonstrates the very successful nature of the summit.
Why Gujarat’s Vibrant is a Success
The Gujarati government ignited one of India’s biggest economic engines with the Vibrant Gujarat Summit and institutional changes to support enterprises. In the 2000s, the Narendra Modi administration realized Gujarat required a significant makeover, beginning with its problems with water and electricity, in order to draw in enterprises.
The situation of its electricity industry was dire in 2001. extended power outages caused by the state’s electricity shortfalls. The Gujarat State Electricity Board was in dire financial straits, having lost more than Rs 2,200 crore. The GSEB spent over Rs 1,227 crore on interest expenses during the fiscal year. In order to combat power outages, the government updated technology, which decreased transmission losses. Gujarat became a power surplus state in five years, and it hasn’t looked back. Gujarat has plenty of energy, with a 45 GW power generating capacity compared to a 25 GW average consumption.
In the meanwhile, Gujarat’s parched areas were turned into hydrated land, boosting agricultural and industrial production. Massive canal and dam projects, spanning the whole state, such as the Sardar Sarovar Dam, the Sujalam Sufalam Yojana, the Sauni Yojana, and the Narmada Main Canal, were implemented to alleviate the state’s water deficit.
The administration moved forward with resolving the delays that companies encountered. In a groundbreaking fashion, land acquisition and the notorious six- to one-year-long approval waits were eliminated. The single window clearance system was enhanced, providing firms with a centralized online site to apply. Shortly after, these applications would be processed by the relevant departments. Additionally, the government made sure that companies received support when they set up shop.
In addition, the government established a land bank that basically consists of estates of land bought in advance to be made available to the industries immediately, removing the lengthy delays in opening for business caused by land acquisition. Gujarat’s reputation as a competitive and business-friendly location was completely transformed by this. The Tata Nano plant is a noteworthy example of this strategy’s effectiveness. After considering many alternatives for relocation from West Bengal, the plant finally settled in Gujarat. A key factor in completing the agreement was the quick mobilization of government backing and the effective land transfer in a matter of days.
Gujarat has the largest gas grid in the world, spanning 2,700 kilometers. Regarding logistics, it has 49 ports, including a large port that handles 40% of India’s cargo, and vast road networks. It also has 19 airports, including 4 international ones, and an improved railway network spanning 5,220+ kilometers. The renowned bullet train project, the high-speed rail connecting Mumbai and Ahmedabad, and the massive Dholera airport project—which is now under construction—are among the upcoming undertakings.
MAGNIFICENCE OF LARGE PROJECTS
Another massive project of the Gujarat government is the Dholera SIR mega project. This special investment area is a proposed greenfield industrial city in Ahmedabad that has excellent road, metro, and airport links. It is developing quickly.
Due to its extraordinary growth, the state has been awarded some of the largest megaprojects, which is drawing in more investors. The most prominent megaproject is PM Modi’s Gujarat International Finance Tec-City (GIFT). This smart city is growing quickly from 1,065 acres to over 3,365 acres with the goal of becoming India’s main financial center. To draw in foreign investors, GIFT was recently released from the state’s prohibition on alcoholic beverages. The DREAM City in Surat, which is centered on the Indian diamond industry and has the Surat Diamond Bourse—the biggest office structure in the world—is another noteworthy project.
Gujarat is also working on a huge hybrid renewable energy project worth an estimated $2.26 billion, called the Khavda Renewable Energy Park. With a staggering 30 gigawatts of power generating capacity, this project aspires to become the biggest operational renewable energy park in the world in three years. It will occupy an area almost the size of Singapore. Investor interest in these projects is expected to be high during the summit.
Bright Gujarat has a remarkable history and has been crucial to the state’s economy turning around and becoming a shining example of success. Among all the Indian states, it offers one of the most business-friendly environments and is home to some of the largest mega-projects in the nation. In light of this achievement, Prime Minister Narendra Modi will vigorously promote India and Gujarat to foreign investors as an attractive investment location during the Vibrant Gujarat Global Summit in 2024.