Gujarat needs to focus on nine winning sectors to boost manufacturing and attract top-class tech companies to help India achieve the goal of a USD 5 trillion economy by 2026-27, according to a task force report.
Set up by the Gujarat government, the task force chaired by former Finance Secretary Hasmukh Adhia has suggested that the state has to accelerate its growth rate and achieve a share of 10 per cent in the national GDP, up from 8.36 per cent in 2021. This means Gujarat has to achieve a target of GSDP of USD 500 billion by FY2026-27.
“If India has to achieve the target of GDP of USD 5 Trillion by FY 2026-27, Gujarat has to run faster because Gujarat is the growth engine of India,” it said.
The report has identified nine ‘winning sectors’ for manufacturing needing special attention from the government. These are automobiles, apparel, basic metals, electronics, electrical machinery and equipment, food processing, gems & jewellery, pharmaceuticals and textiles.
The task force also suggested that the state should focus on all services, mainly IT/ITeS, FinTech, and tourism (including medical value travel).
“The state needs to invest a lot of money in providing high-quality infrastructure for all these sectors. The government needs to spend money for attracting top-class IT companies and tourism sector promoters,” said the Adhia panel report.
Stating that international connectivity from four or five major airports is urgently required to attract investment in the services sector, the report said all possible modern amenities, and cruise services, should be made available to develop Gujarat as a major destination for coastal and inland water tourism.
The report, which calls for a complete revamping of the growth strategy of Gujarat in the next five years, also suggested that the state has to go in a big way in promoting renewables, microgrids and electric mobility. Promoting green hydrogen and semiconductor manufacturing has to be on its radar.
Gujarat has to develop a robust ecosystem for industry-ready human capital, and there is a requirement for quality improvement in higher education and a lot of upskilling of the workforce. Opportunities arising from the gig economy should be exploited, as per the report.
It said that in 2021-22, India became a USD 3.09 trillion economy in nominal terms. The average annual nominal growth for the last 10 years (2012-13 to 2021-22) is nearly 10.5 per cent. Therefore, if the past growth rate is sustained, India would be USD 5 trillion economy by 2026-27 in nominal terms, the report added.
The task force was set up in February for suggesting a strategy for the Gujarat government for making India a USD 5 trillion economy as per the vision of Prime Minister Narendra Modi.