Gujarat 2024: The State Model, Mega Projects, and Modi’s Magnetism Will Draw in Foreign Investors

Gujarat will host its 10th edition of the biannual Vibrant Gujarat Global Summit (VGGS) in 2024, which would be the event’s first in five years since 2019. Prime Minister Narendra Modi will open the three-day conference, which is being billed as the Davos of the East, between January 10 and 12 in Gandhinagar.

Gujarat wants to grow its economy to $1 trillion by 2030, and as a result, it is ready for the world to flock to its doorstep this month with billion-dollar investments at the Vibrant Gujarat Summit. Businesses and international governments are enthralled by the state’s extraordinary industrial development and megaprojects, which include the world’s biggest hybrid renewable energy park, Dholera SIR, GIFT city, and DREAM city. They are also optimistic about the state’s prospects for the future.

Ahead of the general elections in 2024, Prime Minister Narendra Modi is riding high in the political polls. Gujarat, his home state, is a particularly appealing place for businesses to locate their operations because of its political stability and continuity.

PAPALABLE ENTHUSIASM FOR VIBRANT GUJARAT
Weeks before the summit, businesses from a wide range of industries signed preliminary investment agreements worth a combined $18.75 billion for projects they want to construct in Gujarat, demonstrating the strong level of excitement already there.

The Vibrant Gujarat Summit, which is organized by the state government, serves as a platform for thought leaders, investors, business executives, and politicians to come together and create new economic opportunities, mostly centered around the Western Indian state.

Up to 28 nations and 14 organizations, including the UK, the UAE, and Australia, have so far confirmed their participation in the summit as partners. Bangladesh, the Czech Republic, Egypt, Estonia, Finland, Germany, Indonesia, Japan, Kenya, Malaysia, Malta, Morocco, Mozambique, Nepal, Netherlands, Norway, Poland, Rwanda, Singapore, Tanzania, Thailand, Uruguay, Ghana, and Vietnam are some of the other countries. Partner nations will have the chance to look for investments in their own economy from a large pool of Indian and international corporate delegations visiting from all over the globe. Ministerial delegations accompany the partners.

This year, the government is giving developing industries more attention than it has in the past. These industries include semiconductors, electric cars, the manufacture of aviation and space technologies, green hydrogen, and other products connected to renewable energy.

The Gujarat Model
Acting as a trailblazing ace card, the Vibrant Gujarat Summit is largely responsible for the triumph of the much-lauded Gujarat model, which gained prominence from 2001 to 2014 under the leadership of then-Chief Minister Modi.

Gujarat, which is home to an estimated 70 million people, is the third-largest and one of the fastest-growing economies in India, making it a major role in the national economy. Gujarat’s Gross State Domestic Product (GSDP) increased by 15% annually, above the national average, from Rs 1.42 lakh crore in 2003 to Rs 22.61 lakh crore in 2023, thanks to the success of the summit, according to Chief Minister Bhupendra Patel.

Gujarat is now one of the top investment destinations in the nation, drawing $31 billion in foreign direct investment (FDI) between October 2019 and March 2023, totaling Rs 2.39 lakh crore. According to the VGGS website, the state saw the most growth of any state or Union Territory for the fiscal year 2022–2023, with FDI rising by an astounding nearly 84 percent.

LARGE PROJECTS
The vision and objectives of the state administration and Prime Minister Narendra Modi himself provide a magnetic pull to Gujarat’s megaprojects, drawing interest from investors worldwide.

Among them is the nation’s first smart city, GIFT, or Gujarat International Finance Tec-City, PM Modi’s dream project that is rapidly becoming shape. The massive infrastructure project is expected to grow from its current 1,065 acres to approximately 3,365 acres, more than doubling in size. To increase the city’s attraction to foreign investors, the state recently lifted the prohibition on alcohol in the city.

Originally envisioned in 2007 and officially opened for business in 2011, the city’s declared objective is to overtake New York City and London as the nation’s preeminent financial center. It provides a specialist economic zone with services and infrastructure designed specifically for banks, insurance businesses, asset management firms, and financial institutions.

The city is a thriving hub that mostly houses banks, capital markets companies, insurance companies, and internal production facilities. It now employs more than 20,000 people from more than 400 organizations, including well-known brands like Oracle, Bank of America, the legal firm of Cyril Amarchand Mangaldas, Citibank, State Bank of India, Bombay Stock Exchange, and the National Stock Exchange. A commodities market and a bullion exchange, with an average daily transaction of $4 billion, are also located in GIFT City.

Last year, Prime Minister Modi outlined some long-term goals for GIFT City, seeing it as a centre for ship and aircraft leasing, a premier fintech lab, and climate finance.

Another massive undertaking is the Diamond Research and Mercantile City, or DREAM City, a burgeoning Surat economic hub centered on the dazzling giant that is the Indian diamond industry. It is the location of the magnificent Surat Diamond Bourse, which has 4,500 offices and is the biggest office structure in the world.

Another massive project of the Gujarat government is the Dholera SIR mega project. This special investment area is a rapidly developing greenfield industrial planned city in Ahmedabad with excellent road, metro, and airport connections.

Moreover, India is building the massive Khavda Renewable Energy Park in Gujarat, a hybrid renewable energy project, with an estimated cost of $2.26 billion. In three years, the harsh desert of the Rann of Kutch will play home to the world’s biggest operational renewable energy park, almost the size of Singapore, with a staggering 30 gigawatts of electricity generating capacity.

IMPROVED CONNECTIVITY & SIMPLE BUSINESS DOING
Gujarat has had an incredible turn around in its fortunes during the last 20 years. Droughts, natural catastrophes, and sectarian unrest have negatively impacted Gujarat’s investment environment. As a result, the state’s administration, led by Narendra Modi, has campaigned for more business ease. As of right now, the state leads the nation in terms of ease of doing business. In an innovative fashion, land acquisition and the notorious approval delays were eliminated. The power sector saw a reversal in response to power shortfalls. Massive canal and dam projects, including as the Sardar Sarovar Dam, the Sujalam Sufalam Yojana, the Sauni Yojana, and the Narmada Main Canal, were implemented to alleviate the lack of water.

In addition, the state has excellent access to major transportation hubs including as ports, airports, and high-speed bullet trains, especially the one that will link Mumbai and Ahmedabad.

Gujarat’s economic environment has evolved, and the state’s government support and state-of-the-art infrastructure have ensured a healthy future for the region. With Gujarat’s history of success, the Vibrant Gujarat Summit is well-positioned to build on it and pave a bright future for the state.