The news of Gujarat overcoming Maharashtra and becoming one of the largest manufacturing hubs in India is going crazy viral on the internet today and all the social media users who came to know about this news are going super crazy about it. According to the data which was provided by the Reserve Bank of India RBI, it has come to know that Gujarat has left behind Maharashtra as Gujarat has become the nation’s first leading manufacturing hub. It is a great achievement made by Gujarat and it has been seeing its gross value increasing rapidly over the years now.
Gujarat has seen its gross value addition in the field of manufacturing grow by 15.9 % every year with between fy12 to fy20 in order to stand at rupees 5.11 lakh crore according to the data by the Reserve Bank of India. For the people who may not know, GVA, that is, the gross value addition is an economic metric that helps to measure the supply of goods and services which takes place in an economy. This is not only related to the news that Gujarat is growing in economy but also the fact that their development is increasing day by day has hit the headlines now.
While on the other hand Maharashtra growth rate every year student at nearly half of Gujarat which is at 7.5 % for the same time period that is between fy12 to fy20. And according to some reports it is also known that its GVA- gross value addition, for manufacturing has stood at rupees 4.34 lakh crore in fy20. Maharashtra is still on its way to be the leading provider of services in India with the state service growing by 12.6% every year which stands at rupees 15.1 lakh crore in fy20.
What comes after Maharashtra in terms of manufacturing is Tamilnadu which has a gross value addition of rupees 3.43 lakh crore which is then also followed by Karnataka at rupees 2.1 lakh crore and then comes Uttar Pradesh on the list which stands at rupees 1.87 lakh crore. The growth rate in gross value addition for the manufacturing taking place in Rajasthan Telangana and also in Andhra Pradesh was around at 3.8 % 5.5 % and 6.9 % respectively and India’s Kamali to manufacturing gross value added as group to rupees 16.9 lakh crore in fy20 posting an yearly growth rate of 9.7 % since fy12.
So what is the reason behind Gujarat’s speed growth rate which displays Maharashtra? This is all because of higher investment and reforms which paved the way for Gujarat to post double-digit growth over the time period measured. Gujarat capital investment in gross fixed capital formation between the time period of fy12 and f y 19 was rupees 5.85 lakh crore. While on the other hand, Maharashtra investment during the same period that is from fy12 to fy19 was rupees 4.07 crore. And in addition to this andhrapradesh too saw GFCF investments of rupees 1.49 crore.
And talking about the key factor that became the reason for such a growth in Gujarat manufacturing hub, the key factors were the reforms like opening of a single window for business clearances more simplified and easy labour norms and concentrating on the importance of incentive link the schemes which they also contributed to boost ease of doing business in the state and this became the reason for making Gujarat as one of the most attractive destination for foreign direct investment which were highlighted by a KPMG report.