Gujarat may become India’s largest industrial state

Maharashtra may continue to boast that it is India’s numero uno industrial state, but industrial investment approvals have declined to less than Rs9,000 crore in 2011-12 (up to October 2011) from more than Rs20,000 crore in 2010-11.

Even assuming a spurt up the end of this financial year, it is almost impossible for Maharashtra to catch up with last year’s figure until March 2012.

The economic survey revealed that for the last five years, Gujarat has bettered Maharashtra in industrial approvals with the exception of 2010-11. 

The neighbouring state has investment approvals of Rs10.4 crore compared to Maharashtra’s Rs8.74 crore. Though, the number of projects favour Maharashtra at 17,207 compared to Gujarat’s 11,308. Andhra Pradesh with investments approvals at Rs8.32 crore is third on the list.

From 1991 to 2011, the state got industrial proposals worth Rs8,74,053 crore, or 9.4% of all proposals in India. Considering that Maharashtra’s area is 9.3% of India’s and its population accounts for just 9.3% of India’s, the proposals are just proportionate to its size and population. Gujarat’s size and population are much smaller.

But, Maharashtra scores when it comes to foreign direct investment and exports.

Since 1992, Maharashtra has received FDI proposals for Rs,84,958 crore out of India’s total Rs3,79,443 crore, or 22.4% share of all FDI proposals. Its exports of Rs2,28,184 crore is more than a quarter of India’s exports of Rs8,45,125 crore.