vSocio-Economic Review, Gujarat State, 2012-13

AN OVERVIEW OF ECONOMY

1.4 The growth in the output has varied amongdifferent sectors of the economy. The growthrate of 6.2 percent in the GDP during 2010-11 has been achieved due to growth infinancing, insurance, real estate and businessservices accounted for the largest share ofthe growth in output (11.7 per cent) followedby transport, storage and communication(8.4 per cent), electricity, gas and watersupply (6.5 per cent), trade, hotels andrestaurants (6.2 per cent).

1.5 The per capita income at 2004-05 pricesregistered an increase of 4.7 per centcompared to an increase of 7.2 per cent duringthe year 2010-11. At 2004-05 prices, the percapita income increased from Rs 36342 in2010-11 to Rs 38037 in 2011-12. At thecurrent prices, the per capita income in theyear 2011-12 is estimated to be Rs 61564compared to Rs 54151 in 2010-11.

1.6 The private final consumption expenditure atconstant (2004-05) prices is estimated to beRs 3334900 crore in 2011-12. compared toRs 3088880 crore in 2010-11. The private

final consumption expenditure accounted for59.2 per cent of the gross domestic productand market prices in 2011-12 compared to58.3 per cent in 2010-11. At the current prices,the private final consumption expenditure in2011-12. is estimated to be Rs 5056219 crorein 2011-12 compared to Rs 4349889 crore in2010-11.

1.7 The per capita final consumption expenditureregistered an increase of 6.5 per cent in 2011-12 compared to an increase of 7.1 per centin 2010-11 at constant (2004-05) prices. Atconstant prices, the per capita finalconsumption expenditure increased from Rs26045 in 2010-11 to 27745 during 2011-12whereas at current prices, the per capita finalconsumption expenditure in 2011-12 isestimated to be Rs 42065 compared to Rs36677 in 2010-11.

1.8 The rate of gross domestic savings duringthe year 2011-12 was 30.8 per cent which issubstantially lower than the rate of grossdomestic savings of 34.0 per cent during theyear 2010-11. The decrease in the rate of

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200 4 05 200 5 06 2 006 07 20 07 08 200 8 09 2009 10 2010 11 201 1 12

CHART 2 : GROW TH OF GROSS OU TPU T IN INDIA

GDP (Current) NDP (Current) GDP (Factor) NDP (Factor )

Sou rce : Min istry of Statistics & programme Imp lementation,GoI

0

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60000

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2004 05 2005 06 2006 07 2007 08 2008 09 2009 10 2010 11 2011 12

Source : Ministry of Statistics & Programme Implementation, GoI

CHART 3 : TREND OF PER CAPITA INCOME IN INDIA

Current Prices Constant (2004 05) Prices

ixSocio-Economic Review, Gujarat State, 2012-13

AN OVERVIEW OF ECONOMY

production of foodgrains in the state. At thesame time there has also been a marginaldecrease in the yield of foodgrains, especiallyin the yield of cereals. By contrast, the yieldof pulses has recorded a marginal increaseover the year.

2.13 The state also recorded an increase in theproduction of fruits, vegetables, spices andflowers. The production of fruits increasedto 77.63 lakh tones in the years 2011-12,compared to 74.73 lakh tones in the year2010-11. Similarly, production of vegetablesincreased from 93.79 lakh tones in the year2010-11 to 100.49 lakh tones in 2011-12;production of spices increased from 10.35lakh tones to 11.68 lakh tones while that offlowers increased from 1.28 lakh tones in2010-11 to 1.35 lakh tones in 2011-12.

2.14 In case of animal husbandry, there has beenan increase in the production of eggs from13269 lakh in 2010-11 to 14269 lakh in 2011-12. However, there has been a marginaldecreased in the production of wool from29.18 lakh kg. in 2010-11 to 28.19 lakh kg. in2011-12. The fish production, on the otherhand is estimated to be 7.84 lakh tones. Themarine fish production accounts for morethan 88 percent of the total fish production inthe state. The state also produced 6815 lakhfish seeds (spawn) to meat the ever growingdemand for inland fishing.

INDUSTRIES2.15 According to the provisional result of Annual

Survey of Industries 2011, total number offactories in the state increased from 15576in 2009-10 to 21282 in 2010-11 which showsthat the race of industrialization has been veryrapid in the state in the recent past. As a resultof rapid industrialization a value of thefactories production increased from 643thousand crore in 2009-10 to 807 thousandcrore in 2010-11 at current prices recordingan increase of more than 25 percent. At thesame time the fix capital generated by thefactories increase from around 240 thousandcrore to 272 thousand crore reflecting anincrease of more than 13 percent. Howeverafter taking into account the input cost anddepreciations the net value added by thefactories sector decreased marginally fromaround 90 thousand crore in 2009-10 toaround 89 thousand crore in 2010-11.

2.16 Rapid industrialisation of the state has alsoconstituted to increasing the employment

opportunities in the state. Total employmentin the factories sector increased from 11.59lakh in 2009-10 to 12.90 lakh in 2010-11 whichmeans that between 2009-10 and 2010-11,more than 1.3 lakh jobs were created by thefactories sector of the state.

2.17 The value of mineral produce in the stateduring the year 2010-11 was estimated to bemore than 14 thousand crore. Oil and naturalgas account for nearly three forth of the totalvalue of the mineral produce. During the year2010-11, the state produce 5905 thousandtones of crude petroleum and 2263 millioncubic metres of natural gas.

ENERGY2.18 Gujarat is one of the few states of the

country which have surplus electricity. Thishas been possible due to strong politicalcommitment and long term policy perspective.Total installed capacity of the state was15306 MW by the end of the year 2011-12.Against this installed capacity the stategenerated more than 78 thousand MUselectricity during the year 2011-12, while thetotal consumption was estimated to thearound 64 thousand MUs. Industrial sectoraccounted for the largest share of electricityconsumption (43 percent) followed byagriculture sector (22 percent) and domesticsector (16 percent).

2.19 Total electricity consumption in the stateincreased from around 59 thousand MUs in2010-11 to about 64 thousand MUs in 2011-12 while per capita electricity consumptionincreased from 1512 units in 2010-11 to 1642units in 2011-12.

2.20 Gujarat is a pioneer state of India inharnessing non-conventional energy sourcesit has lunched an ambitious programme ofharnessing solar energy as the state has ahigher level of solar radiation compared toother states of India. The state has thedistinction of establishing the first solar parkin the country. The state has alsocommissioned the first solar power projectof 824 MW in the country. The state has alsoinitiated efforts towards generating electricitythrough tidal waves as the state has thelargest coast line in the country.

ROADS AND TRANSPORT2.21 The state has a road network of more than 77

thousand kilometers. Almost 97 percent roadlength of the state is surfaced and are all

25Socio-Economic Review, Gujarat State, 2012-13

DEVELOPMENT IN IMPORTANT SECTORS OF GUJARAT ECONOMY

cigar units registered under the bidi & cigarworkers (conditions of employment) Act,1966 are also covered in ASI. Althoughestablishments under the control of theDefence Ministry, oil storage and distributionunits, restaurants and cafes and technicaltraining institutions not producing anything forsale or exchange were kept outside thecoverage of the ASI.

4.18 The number of factories have increased from15576 in 2009-10 to 21282 in 2010-11(P),showing a growth of 36.63 percent over theprevious year. The net value added by factorysector in the State has decreased from Rs.90028 crore in 2009-10 to Rs. 89448 crore in2010-11(P), showing a reduction of 0.64percent over the previous year.

4.19 The value of gross output at current pricesof all registered factories covered under thesurvey in the State has increased from Rs.642658 crore in 2009-10 to 806783 crore in2010-11(P), showing a growth of 25.54percent over the previous year.

4.20 The fixed capital generated by the factorysector in the State has increased from Rs.240381 crore in 2009-10 to Rs. 271966 crorein 2010-11(P), showing a growth of 13.14percent over the previous year.

4.21 The employment in all factories covered underthe survey, inclusive of managerial, supervisoryand clerical personnel has increased from11.59 lakh in 2009-10 to 12.90 lakh in 2010-11(P). It shows that about 130543 additionalnet employment has been generated in the stateduring the year 2010-11(P).

4.22 The percentage share of Gujarat state in AllIndia aggregates for ASI 2010-11(P) such asnumber of factories, number of employees,value of output and net value added accountedfor 10.05 percent, 10.14 percent, 17.22

percent and 12.55 percent respectively.Gujarat has the highest share of 16.91 percentof fixed capital in India.

4.23 According to provisional results of ASI 2010-11(P) and as per NIC-2008, the percentageshare of major industry group in net valueadded is given in the (Table No. 4.1). Thecontribution of these above nine industrygroups together accounted above 84.75percent in the net value added generated byState factory sector.

4.24 It is also observed that the, industry group(13) Manufacturing Textiles consisting of2539 (11.93 %) factories is the prime groupof the State in terms of number of factories.Industry group (19) Manufacture of coke andrefined petroleum products & Nuclear Fuelis the prime group in term of fixed capital ofRs. 87534 crore (32.19%). Industry group(13) Manufacture of Textiles is the primegroup in terms of Employment withemployment of 239775 (18.59 %) and theindustry group (19) Manufacture of coke and

Table-4.1 - Share of Major Industry GroupsSr. Industry Description of Industry PercentageNo. Group share in net

Code value added1. 19 Mfg. of Coke Refined Petroleum

Products & Nuclear Fuel 29.252 20 Mfg. of Chemical & Chemical

Products 21.213. 24 Mfg. of Basic metals 7.654. 13 Mfg. of Textiles 5.665. 28 Mfg. of machinery and

equipement n.e.c 5.616 21 Mfg. of Pharmaceuticals, Medi-

cinal Chemical & Botanical 4.827. 23 Mfg. of other non-metallic

mineral products 4.158. 25 Mfg. of Fabricated Metal

Products except Machinery 3.379. 10 Mfg. of Food products 3.03

01000020000300004000050000600007000080000

1980-81 1990-91 2000-01 2006-07 2007-08 2008-09 2009-10 2010-11(P)

Chart-1 : NET VALUE ADDED - FACTORY SECTOR (Rs . in Cr or e)