According to new data released by the Reserve Bank of India, Maharashtra has been displaced as the biggest manufacturing hub in the country – by Gujarat.
Gujarat’s Gross Value Addition (GVA) in manufacturing grew at 15.9 per cent annually on average between FY’12 and FY’20 to touch Rs 5.11 lakh crore. Maharashtra’s annual growth rate during the period was 7.5 per cent, taking the state’s total manufacturing GVA to Rs 4.34 lakh crore in FY’20.
The worst performers among states which were already among the top ten during the period were Rajasthan, Telangana and Andhra Pradesh, with average annual growth rates of 3.8 per cent, 5.5 per cent and 6.9 per cent respectively. The GVA is essentially GDP minus net product taxes and reflects growth in supply of goods and services.
Higher investment in Gujarat during those years may have been the reason why the state rose to the number one position. Gujarat witnessed the highest level of capital investment in terms of gross fixed capital formation (GFCF) – a measure of investments – between FY’12 and FY’19 at a total of Rs 5.85 lakh crore.
Maharashtra, however, retained its spot as the leading provider of services in the country.
