This paper reviews the growth and development of Gujarat, one of India's leading industrial states, and the reasons for its relatively high growth. It presents a synoptic review of the performance of the Gujarat economy since independence bringing out the underlying reasons for its remarkable performance in emerging as the key manufacturing state in India. The paper conceptualises the limitations and options in economic policies for the growth of a region. Next considered are Gujarat’s growth and its bearing on inequality and poverty reduction. Despite the high growth, Gujarat faces limitations emanating from skills constraints to attract skill intensive industries. The special problems of Gujarat’ agriculture, as also the impact of central macroeconomic policies on the growth (especially of manufacturing) is discussed. The paper also includes a discussion of the options for Gujarat in tradable services and especially ITES (Information Technology Enabled Services).  The conclusion includes an analysis of why FDI has been small in relation to the very large overall investments in the state.

Click here to download