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Economy of Gujarat

The number of registered working factories in the state were 20,050 (provisional) at the end of 2000 and the number of small scale industrial units was 2,56,388 as on March 31, 2001. Establishments engaged in the manufacture of cotton textiles provide employment to a major  portion of the industrial workers  followed by the manufacture of non-metallic mineral products. These two industries together provide employment  to 31.49 % of the industrial workers . There is a development of industries like Chemicals, petrochemicals, fertilizers, engineering, electronics etc. With the largest petro- chemical complex in the country, Gujarat is a major producer of inorganic chemicals such as soda-ash and caustic soda as well as chemical fertilizers.

The establishments engaged in manufacturing of machinery and machinery tools and parts except electrical machinery, manufacture of wool, silk and synthetic fibre textiles and manufacture of basic metal and alloys industries cover 30.50 % of the total industrial workers. Other manufacturing products are rubber, plastic, petroleum and coal products, transport equipments and parts, food products etc.

A large number of small scale industries are pertaining to metallic work, chemical industries, machinery except electricity and transport, cotton industry and non metallic mineral work etc. The diary industry with a milk procurement of 35 lakh litres is the first in the country.

There is production of oil and natural gas in Ankleswar, Cambay and Kalol and a oil refinery at Koyali.

Gujarat Industrial Development Corporation (GIDC) have developed around 257 mega industrial estates such as the ones at Jhagadia, Vagra, Savli, Dahej, Anklaseshwar etc. Jamnagar, Porbandar, Jafrabad, Bhavnagar etc are centers of Industry and trade.

Agriculture in Gujarat forms a vital sector of the state's economy. It has to provide the required food grains for the state's population and raw materials for most of the agro-based industries. Unsuitable climatic conditions in some parts and rocky terrain with thin or no soils in others, have limited the area suitable for cultivation. The difficulty of drainage in coastal areas and in the two Ranns has made a large part of the state agriculturally unproductive.

The state's agricultural productivity is low. The yields are poor and in most cases do not even approach the low level of average yield for the country. Low yields result from poor soils, inadequate rainfall, frequent droughts and floods, bad drainage and undeveloped irrigation facilities. A characteristic feature of the state's agriculture is its cropping pattern un-proportionately dominated by cash crops. The high yield of cotton in fact the highest in the country, reflects the overall emphasis on cash crops, which have claimed the best agricultural land.

A higher percentage of the land is used for cultivation in central Gujarat. Kaira, Baroda, Broach and Surat districts are the main contributors to the agricultural production of the state. Valsad has become India's first integrated horticulture district.

The state produces a large variety of crops and its cropping pattern reflects the spatial variations in climate and topography. Groundnut (highest production in the country), cotton, Tobacco (second highest production in the country), isabgul, cumin sugarcane, Jawar, Bajra, Rice, Wheat, Pulses, Tur and Gram are the important crops of Gujarat. Another cash crop which has recently entered the field though in a few selected localities is banana. Plenty of mangoes for export as well as home consumption are part of cash crops.

Honey, wax and bamboo are produced in fair quantities in different forests and medicinal herbs and fruits like Jamun and guava are produced in plenty. Forests also yield considerable quantities of teak, Khair, sadad, hadariyo, manual bamboos and such good quality of wood.


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