The article presents a brief overview of the economy of Gujarat, trends in the state domestic product, growth rate, etc. It presents the contributions of different sectors, sector-wise growth rate and major human development indicators. The article also highlights the need for a fundamental rethink about the economic development model itself. A new approach that gives jobs and value addition, generates benefit to the people of the state and does not compromise on the environment can be the state's future strategy for its accelerated economic growth.

Gujarat is one of the most prosperous states in India. The state ranks fourth in per capita income and its economy has witnessed remarkable success during the last three decades. The move towards Liberalization, Privatization and Globalization (LPG) has further contributed to the state's economic growth to meet the challenges of sustained GDP growth with corresponding increase in per capita income. The enterprising population, with the support of the state government has heralded a new path towards investments in secondary and tertiary sectors. The high growth rate of the state during the last two decades is mainly due to its fast industrial growth and the resultant boom in the service sector. It is expected that with relatively diversified sources of income and workforce and a developed capital market, the state can emerge as another Asian tiger within a few years.

Though Gujarat constitutes only 6% of the geographical area of the country and 5% of the total population, the state is a leader of the industrial and entrepreneurial wealth of the country. Gujarat, today, accounts for as much as 17% of the total investments approved, 13.2% of industrial production and 13% of value addition in the country. At the same time, it also contributes over 21% in exports from India. The state has a solid industrial base with diversification and market access. When the state was formed in 1960, the textile industry contributed the major share of income and employment. However, now the state contributes 30% of the total chemicals produced in our country. Above all, it produces 14.1% of the total petroleum products, 14.3% of the total paper products and 10% of the agro and food products of the country. It has taken extraordinary vigor and initiative to explore the new opportunities created by liberalization, when it was introduced in 1991. In terms of attracting foreign direct investments, Gujarat was always well ahead of the other states in India.

Treasury Management Magazine, Gujarat Economy, Gross State Domestic Product, GSDP, Economic Development Model, Liberalization, Privatization and Globalization, LPG, Capital Market, Textile Industry, Human Development Indicators, Agriculture Sectors, National State Domestic Product, NSDP, Industrial Sector, Cottage Industries.