'Gujarat is driving its economic growth via sector-specific policies'

Gujarat CM Bhupendra Patel outlines plans to make the state a $1 trillion economy by 2030, attract GCCs, expand renewables and reform state-run enterprises

Bhupendra Patel will next month complete five years as Gujarat chief minister. In an email interview, he tells Archis Mohan about the state government’s efforts to achieve the target of making Gujarat a $1 trillion economy by 2030, the infrastructure development being undertaken in Ahmedabad and other cities to host the 2030 Commonwealth Games, and the disinvestment plans for state public-sector undertakings (PSUs). Edited excerpts: 

Gujarat has set itself the target of becoming a $1 trillion economy by 2030. What steps are being taken to achieve this ambitious target? 

With gross state domestic product (GSDP) of ₹27.03 trillion ($318 billion) in 2024-25 (FY25), Gujarat accounts for 8.2 per cent of India’s GDP. With robust industrial infrastructure, investor-friendly policies and stable and transparent governance, Gujarat is set to become a $1 trillion economy by 2030. 

To achieve this, Gujarat has taken proactive measures — from developing “economic master plans” to sector-specific policies to create large-scale and future-ready infrastructure. The state’s long-term road map, anchored in the Regional Economic Master Plan, targets growth by 2047 with planned public-private investment across various projects. Strategy delivery is being driven by GRIT (Gujarat State Institution of Transformation), a NITI Aayog-modelled state think tank set up in July last year for data-driven regional policy. 

Six Economic Master Plans (EMPs) have been prepared — for North Gujarat, Central Gujarat, South Gujarat (Surat), Saurashtra, Coastal Saurashtra, and Kutch. Each EMP is designed to match local strengths with development needs, and reduce regional inequality by bringing targeted investment, infrastructure, and jobs to Gujarat’s under-served districts. 

The Gujarat State Integrated Logistics Master Plan (ILMP), officially launched in January, is a long-term strategic road map prepared by the state government to transform the state into India’s most efficient and globally competitive logistics hub.

 

Gujarat is driving its economic growth through sector-specific policies targeting key industries, such as the Viksit Gujarat Industrial Policy 2026, Logistics and Logistics Parks Policy 2021, Textile Policy 2024, Integrated Renewable Energy Policy 2025, and Green Hydrogen Policy 2025. 

The state is also developing advanced infrastructure through Special Investment Regions. 

What are your government’s plans, policies and likely incentives to attract global capability centres (GCCs) and international banking units to GIFT City (Gujarat International Finance Tec-City)? 

As of May, GIFT City emerged as a leading global hub with over 1,924 registered entities, including global firms like HSBC, Google, and JP Morgan, and is ranked 43rd on the Global Financial Centres Index (GFCI). The Gujarat Global Capability Centre (GCC) Policy 2025-30 aims to attract 250 GCCs, an investment of more than ₹10,000 crore, and 50,000 jobs, with a focus on financial services, fintech, and global in-house centres. The policy offers subsidies on capital expenditure, support on operating expenses, salary reimbursements, interest subvention, support on the employee provident fund, and exemption from electricity duty. 

What are the state government’s plans for renewable energy? 

In June, Gujarat’s renewable-energy (RE) capacity was 51.5 Gw, and it has set a target of meeting over 63 per cent of its installed capacity from renewables and have more than 16 per cent of the country’s RE installed capacity. Under the Integrated Renewable Energy Policy 2025, Gujarat aims to scale up its RE capacity to over 150 Gw by 2035, and an ambitious 300 Gw by 2047. 

Gujarat’s Green Hydrogen Policy 2025 targets producing 5 million tonnes per annum of green hydrogen by 2030. Apart from this, Gujarat has earmarked 199,000 hectares specifically for green-hydrogen projects. To ensure grid stability and support the large-scale integration of renewables, the state has also introduced the Pumped Storage Project Policy 2025, which targets 75 pumped storage projects by 2035, with an estimated investment of ₹75,000 crore. 

What are the next-generation reforms to improve ease of doing business? 

To date, the state has streamlined 3,226 compliances, covering both business-centric and citizen-centric processes. Following an extensive review of state Acts and Rules, more than 731 provisions have been decriminalised. Gujarat’s E-Sarkar initiatives focus on end-to-end digitisation of government services, approvals, and compliance processes. For the first time, the state government has introduced “choose your incentive” framework, which is flexible, transparent and speedy, and allows industries to choose a customised combination of capital subsidy, interest subsidy, or power tariff reimbursement that suits their business viability. Micro, small and medium enterprises (MSMEs) will not be defined in accordance with the latest definition by the Union Ministry of MSME and will get incentives up to 45 per cent of their investment. 

What are the government’s plans for the Commonwealth Games 2030? 

Ahmedabad has been officially confirmed as the host city for the 2030 Commonwealth Games, with events planned in Ahmedabad, Gandhinagar, Vadodara, and Ekta Nagar. The state has seven international airports, while new airports at Dahod and Dwarka have been announced. The expansion of Ahmedabad International Airport is being planned ahead of 2030 to handle increased global traffic. Urban mobility is being upgraded through metro rail projects. 

The Sardar Vallabhbhai Patel Sports Enclave in Motera is being expanded into a world-class sports hub, including the addition of multiple new stadiums and temporary venues. 

Are there plans for disinvestment in loss-making state PSUs? 

A road map for PSU rationalisation is being prepared, with implementation expected to begin in FY27. The state’s strategy focuses on a three-pronged approach: Disinvesting or privatising non-strategic and loss-making PSUs, merging entities with overlapping functions, and retaining those that are strategic or financially viable. A study prepared for the 16th Finance Commission in 2024 noted that Gujarat was well-positioned to pursue a disinvestment strategy based on its fiscal indicators and PSU performance.