Morgan Stanley Applauds Gujarat’s Economic Model as Key to India’s Growth

Daman, Union Territory — The recently published Morgan Stanley’s report, “Building Block of India’s Prosperity,” recognizes Gujarat as the influential state in the country to steer the nation toward becoming the world’s third-largest economy by 2028 and achieving a GDP of $10.6 trillion by 2035. 

The state’s capacity to speed up the economic momentum, policy innovation, and leadership in manufacturing, exports, and infrastructure modernization has been cited as the reasons in the report. The state has consistently outpaced national growth averages, recording one of the highest five-year real GDP compound annual growth rates (CAGR) among other Indian states that exceeds the all-India average of 6.1%.

Its contribution to the target of a 1 trillion-dollar economy by 2030 is strongly rooted with a Gross State Domestic Product (GSDP) of over Rs.25.68 lakh crore in FY2023–24. Despite being 5% of the total Indian population, the state’s contribution to national GDP is more than 8%.

The “Business-First” policy framework of the government has fostered a highly competitive investment environment. With a faster approval window, the approval has been streamlined for industrial zones, and large-scale infrastructure projects like GIFT City and Dholera SIR to secure its position among the country’s top industrial and export hubs. 

Gujarat has the highest industrial output in the country and leads chemicals, pharmaceuticals, textiles, and engineering goods. The proximity of ports helped the state to handle the largest share of ocean cargo.

In per capita prosperity and Human Development index Gujarat ranks among nine out of 18 major states with a per capita GDP above the national average of $2,547. The state’s gateway cities of Ahmedabad and Surat, drive innovation, employment, and entrepreneurship across industries, exemplifying the “Gujarat model” of inclusive economic development.

The Morgan Stanley report highlights the state’s pro-business policies as a key competitive advantage, setting benchmarks for other Indian states and enhancing international competitiveness. In the manufacturing field, the logistical edge, and export orientation reinforce India’s global manufacturing ambitions. From a large-scale special investment zone to modern ports, Gujarat leads in infrastructure development and public-private partnerships. Gujarat’s continued leadership and innovation will propel India towards a $10.6 trillion economy by 2035, ensuring long-term sustainability.

(Author Dr Vidhu Sekhar P is Assistant Professor at National Institute of Fashion Technology, Ministry of Textiles, Govt. of India)