Gujarat Budget 2024-25 Highlights: Proposes Fintech Hub, Semiconductor School

February 2, 2024

Making provisions for setting up a Fintech Hub at GIFT City, a Semiconductor School at Sanand and a manufacturing hub for the space sector, the Gujarat government has presented a ₹3.32 lakh crore budget for the financial year 2024-25.

Budget Highlights

The ₹146 crore surplus budget is 10.44 percent more than the budget for the current fiscal. Finance minister of Gujarat, Kanu Desai said that Gujarat has been growing at 14.89 percent over the last two decades and it’s contribution to national GDP has risen from 5.1 percent in 2000-01 to 8.2 percent currently.
The budget made a provision of ₹52 crore to set up a Fintech hub at GIFT City and another ₹100 crore to develop Sabarmati Riverfront near GIFT City. The Riverfront will be extended to 38.2 kilometers in five phases making it the longest and most scenic riverfront in the world.
In collaboration with Micron Technology, the government plans to set up a school for semiconductors at Sanand (near Ahmedabad) with a provision of ₹33 crore to create skilled youth for the semiconductor sector.
Under the semiconductor and electronics policies, the government has provided ₹1,049 crore for providing assistance to industries in this sector.
Gujarat government has also proposed to set up a “manufacturing hub” in a phased manner at Khoraj near Ahmedabad for development of an “economy related to space sector” with a provision of ₹60 crore.

Investments in Logistics and Infrastructure

In the logistics sector, the government has decided to double the recycling capacity of shipbreaking yard at Alang from 4.5 million LDT to 9 million LDT. A provision of ₹100 crore made for Gatishakti Cargo Terminal to reduce logistic costs.

A provision of ₹25 crore has been made to build aviation infrastructure and constructing new airport/airstrip.
For promotion of textile industries, the government has made a provision of ₹1,600 crore. Similarly, ₹1,550 crore for MSMEs and ₹1,145 crore for large industries.
The government proposed conversion of 7 municipalities into Municipal Corporations. This will increase total municipal corporations in Gujarat to 15 from 8 currently.
The government also proposed to introduce a single emergency number 112 to provide emergency services within 10 minutes in urban areas and 30 minutes in rural areas.
The government will construct a ₹50 crore Gujarat Yatri Niwas in Ayodhya.

Economy of Gujarat

Gujarat has one of the most prosperous and fastest growing state economies in India. Its gross state domestic product (GSDP) growth rate has been over 10% annually over the last decade. Key drivers of Gujarat’s economy include manufacturing, petrochemicals, pharmaceuticals, textiles, engineering, food processing, and agriculture. Major manufacturing industries include automobiles, chemicals, plastics, cement, ceramics, and gems and jewelry. Gujarat houses two of India’s largest private petroleum companies, Reliance Industries and Adani Group. It accounts for over 62% of India’s petroleum production and 30% of natural gas production.
Other major industries include textiles and apparels, dairy, mining minerals like limestone and lignite, engineering goods, chemicals and fertilizers, and pharma. Major agricultural produces include cotton, groundnuts, dates, sugar cane, milk and livestock. Wheat, millet, rice and jowar are other important cereal crops. Gujarat has an extensive coastline of 1600 km which helps facilitate maritime trade and economy. Major ports like Kandla help connect it globally. To further growth, Gujarat government has developed special economic zones, industrial parks and developed infrastructure like roads, rail and air connectivity across the state.

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