Sector-specific policies aid Gujarat's quest to attract business investments

The state's semiconductor policy, announced in July last year, has paved the way for big ticket investments, like the one by US-based chip maker Micron Technology.

Ahmedabad: Gujarat's sector-specific policies have aided its effort to attract business investments, with the state's contribution of around 8 per cent to India's GDP, 18 per cent to industrial output and 30 per cent to exports being testament to the impact of the policies on its growth, officials said.

The policies, chalked out keeping in mind the requirements of various sectors, aim at helping the industry tap huge possibilities that the state offers through the business-friendly environment, investment opportunities and rich natural resources, they said.

The state's efforts to attract business investments have been further amplified by initiatives like the Vibrant Gujarat Global Summit (VGGS).

The 10th edition of the VGGS will be held in Gujarat capital Gandhinagar between January 10 and 12, 2024.

The state's semiconductor policy, announced in July last year to draw new investments in the sector by offering incentives and subsidies to start operations, has paved the way for big ticket investments, like the one by US-based chip maker Micron Technology.

Micron had announced that it will set up a semiconductor assembly and test plant in Gujarat entailing a total investment of $2.75 billion (around Rs 22,540 crore).

"Semiconductor is one sector which India has been chasing for years. However, owing to the efforts of Prime Minister Narendra Modi, India has now taken a big step in the direction of semiconductor manufacturing," Gujarat Chief Minister Bhupendra Patel said at the Semicon India programme held in Gandhinagar earlier this year.

Industry leaders have lauded Gujarat as an investment destination and the state government's approach to creating a conducive business environment.

Micron Technology CEO Sanjay Mehrotra said at the Semicon India event that his company was proud to be in Gujarat.

"On behalf of Micron's global team, I am proud to be here to represent Micron's commitment to build a semiconductor assembly and test facility right here in Gujarat. It is a first for India and the first major semiconductor company investment in the country. Micron is really proud to lead the way," he said.

Maruti Suzuki's Executive Director, Corporate Affairs, Rahul Bharti also explained what made them look at Gujarat for investment.

"The key thing that investors look for is being competitive globally, so if a location helps you in making your manufacturing competitive in the domestic and export markets, that is the best that the state can help...," he said.

Gujarat's historical textile industry has also benefited from the state's policy for the sector.

Maskati Cloth Market Association president Gaurang Bhagat said the textile policy has resulted in massive investment in the sector.

"The textile policy of 2012 has resulted in lot of investment in spinning, weaving and processing. It is the success of the mantra given by (Prime Minister) Modi," he said.