Gujarat is always known for its entrepreneurial abilities. The state has played a major role in shaping the economy of the country. Talking about Gujarat, It is a state with India’s 6% of Geographical area and a population of 60.4 million in total. Furthermore, Gujarat provides almost 20% of India’s exports.
Gujarat is known for producing one of the richest and successful businessmen in the world. India’s richest businessman Dhirubhai Ambani, Director of Reliance Industries belonged to Gujarat. Presently, their family is one of the richest in the country and the world too.
Gujarat has been home to several small scale industries that have now transformed into large scale industries and are making their mark in the country and world. There are several reasons behind Gujarat being the entrepreneurial hub of India.
Recent Startup Activity in Gujarat
In total there are 20 emerging startup hubs that have more than 20 funded startups. The emerging hubs include cities like Ahmedabad, Kochi, Kolkata, Jaipur. In the year 2014-2019, almost 150 startups were founded in these emerging hubs.
Ahmedabad has been taking the lead in terms of the ‘emerging startup hubs’ in India. The city grabbed headlines when it got a 43% share of funded startups in emerging hubs. Then follows Jaipur ( 25%), Kolkata (17%), and Kochi (15%).
The emergence of Entrepreneurship Development in Gujarat
It was back in 2003 when Current Prime Minister Narendra Modi who was chief Minister of Gujarat then initiated the Vibrant Gujarat Summit. The Vibrant Gujarat Summit was initiated to grab the attention of various investors across the world. Year after year, now this summit has become one of the important business events in India.
Besides several policies, the State Government is trying every bit to support various startups through events such as the Vibrant Gujarat Startup and Technology Summit. They support entrepreneurs by providing them with expert knowledge, most essentially finance, and much more.
With such efforts, people have seen an increase in the number of regional startup hubs in the state. The highest number of startups have been seen in cities like Ahmedabad, Vadodara, and Surat. Out of all these cities, Ahmedabad is one of the fastest-growing and has the most potential to become the breakout startup hub in Gujarat. The reason behind this is its accessibility to some premier educational institutes such as MICA, GTU, NIFT, Ganpat University, and IIM-A.
Gujarat as the Entrepreneurial Hub of India
Gujarat Government has been taking several steps towards ensuring the growth of startups in the state. A policy for official IT and Electronics was brought in 2016. Furthermore, It will be updated in 2021. It has several objectives such as:
- Helping at least 2000 startups through this policy
- Providing 50 incubators in the overall state (20+ incubators are around Ahmedabad)
- Providing incubation space of 1 Mn sq
- Besides are some major reasons behind Gujarat being the Entrepreneurial Hub of India,
Encouraging SME and MSMEs
Post demonetization, businesses have been affected by it micro, small or medium-scale led. But still, there has been some investment coming in the Vibrant Gujarat Summit. When compared to the MSME investment from 2009 to 2019, it has seen a great improvement.
To encourage MSMEs and drive growth in this sector, The government decided to shift its focus on the 8th edition of Vibrant Gujarat. This in result gained investors from all across the world. In the past, Gujarat Industrial Development Corporation (GIDC) also took up the opportunity to organize the International Conclave for joining the cluster in front of the Government Officials, policymakers, and experts from various MSME sectors across India.
Expeditious growth of IT/ ITeS sector companies
Gujarat has the upgraded GIFT city model with a massive increase in IT firms all over Gujarat. With this, Gujarat will soon turn into an IT hub following the footsteps of Bangalore and Pune. The GIFT city model has become utterly famous among the domestic and international IT firms and they wish to start operating from there.
Still, some companies have their offices situated outside of Gift city, but now they are also thinking of getting a space and start operating from there.
Education Sector is Big Game
Education is one such sector that gets a big investment. The state of Gujarat is planning to move ahead with a digital-based economy that also has a flexible education system. The main agenda here is to promote entrepreneurship in Gujarat.
Uplifting Manufacturing Industries
Gujarat is considered to be one of the leading states in the country for providing 24*7 electricity in villages and other rural areas. Due to this, Gujarat has done extremely well in various sectors. The manufacturing sector has seen unprecedented growth in terms of production.
Gujarat is a land of opportunities for someone who believes in hard work and wishes to make a mark in the industry. With several policies from the Government, entrepreneurs are taking a step towards initiating a startup whereas investors are investing in the businesses they find to be potential enough. So, it’s a great opportunity for both entrepreneurs and investors too.
We hope this blog will help you know the reason behind Gujarat being the Entrepreneurial Hub of India. If you have any feedback or suggestions, feel free to share it in the comment section.