Study by top consultants KPMG finds Gujarat's investment climate dipping, talent pool below major states

Counterview Desk
A top report prepared by well-known consultants, KPMG, employed in the past by the Gujarat government for advising on how to improve the state’s investment climate, has revealed that the state’s investment potential has been dipping over the last five years. In its just-released report, titled “District wise skill gap study for the State of Gujarat (2012-17, 2017-22)”, KPMG, which prides itself for having a network of global professionals offering best of advise on improving investment climate to governments and private parties, has shown, through a chart, that in Gujarat a total of Rs 103,871 crore of investment was made in 2012, which was the lowest since 2008.
Thus, in 2008, investment worth Rs 121,852 crore was made, which jumped to a whopping Rs 147,971 crore in 2009. However, thereafter, the investment began slipping – in 2010 it was Rs 141,021 crore, in 2011 it further slipped to 140,474 crore, and, finally, in 2012 it was Rs 103,871 crore. The report has been prepared for the National Skill Development Corporation, on request from the Gujarat government, in order to "assess" the gap Gujarat would face over the next several years in the demand and supply of manpower in view of the “huge” investment the state’s different sectors have been able to attract in the recent past.
While pointing out that "huge" investment across the state would mean the need for talented manpower, the report regrets, Gujarat has only a “marginally better penetration of higher education compared to the national average.” Thus, while Gujarat’s enrolment in higher education is 14.8 per 1000 population, as against the all-India average of 14 per 1000 population. It comments, “Other progressive knowledge economies like Andhra Pradesh, Tamil Nadu and Karnataka have higher penetration than Gujarat” – Andhra Pradesh 21.8 per cent, Tamil Nadu 20.8 per cent, Maharashtra 17.4 per cent, and Karnataka 16.4 per cent.

Higher education penetration per 1000 population

Not only has investment dipped, the report has found that number of large-scale units proposing to invest, too, has dipped. Thus, the number of big units proposing to invest in Gujarat was the highest in 2005, with 860, but these reached 383 in 2008. In 2009, as many as 382 big units proposed to invest in Gujarat. In 2010, these went up to 496. In 2011, these further increased to 541. However, in 2012, the numbers went down to the lowest ever since 2002 – 372. The top consultants give no explanation on say why this has happened, only saying, “Over the last five years, the state has witnessed over Rs 1 lakh crore of investments proposed per year.”
At the same time, KPMG also found a wide regional variation in investment, suggesting, efforts by the Gujarat government to uplift backward regions has not succeeded. It has said, “Analysis of regional distribution of investments in Gujarat indicates that the industrial development is concentrated around few districts of Kutch, Bharuch, Surat, Vadodara, Bhavnagar, Banaskantha, Rajkot, Jamnagar while other regions including the Dangs, Narmada, Dahod, Navsari remain backward in terms of industrial development.” In 2002-12, Kutch attracted an investment of Rs 5.24 lakh crore, while Ahmedabad received an investment of just Rs 15,801 crore.

Comments

Delhi Jal Board under fire as CAG finds 55% groundwater unfit for consumption

By A Representative A Comptroller and Auditor General (CAG) of India audit report tabled in the Delhi Legislative Assembly on 7 January 2026 has revealed alarming lapses in the quality and safety of drinking water supplied by the Delhi Jal Board (DJB), raising serious public health concerns for residents of the capital.

Advocacy group decries 'hyper-centralization' as States’ share of health funds plummets

By A Representative In a major pre-budget mobilization, the Jan Swasthya Abhiyan (JSA), India’s leading public health advocacy network, has issued a sharp critique of the Union government’s health spending and demanded a doubling of the health budget for the upcoming 2026-27 fiscal year.

Iswar Chandra Vidyasagar’s views on religion as Tagore’s saw them

By Harasankar Adhikari Religion has become a visible subject in India’s public discourse, particularly where it intersects with political debate. Recent events, including a mass Gita chanting programme in Kolkata and other incidents involving public expressions of faith, have drawn attention to how religion features in everyday life. These developments have raised questions about the relationship between modern technological progress and traditional religious practice.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra* The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Pairing not with law but with perpetrators: Pavlovian response to lynchings in India

By Vikash Narain Rai* Lynch-law owes its name to James Lynch, the legendary Warden of Galway, Ireland, who tried, condemned and executed his own son in 1493 for defrauding and killing strangers. But, today, what kind of a person will justify the lynching for any reason whatsoever? Will perhaps resemble the proverbial ‘wrong man to meet at wrong road at night!’

Zhou Enlai: The enigmatic premier who stabilized chaos—at what cost?

By Harsh Thakor* Zhou Enlai (1898–1976) served as the first Premier of the People's Republic of China (PRC) from 1949 until his death and as Foreign Minister from 1949 to 1958. He played a central role in the Chinese Communist Party (CCP) for over five decades, contributing to its organization, military efforts, diplomacy, and governance. His tenure spanned key events including the Long March, World War II alliances, the founding of the PRC, the Korean War, and the Cultural Revolution.

'Threat to farmers’ rights': New seeds Bill sparks fears of rising corporate control

By Bharat Dogra As debate intensifies over a new seeds bill, groups working on farmers’ seed rights, seed sovereignty and rural self-reliance have raised serious concerns about the proposed legislation. To understand these anxieties, it is important to recognise a global trend: growing control of the seed sector by a handful of multinational companies. This trend risks extending corporate dominance across food and farming systems, jeopardising the livelihoods and rights of small farmers and raising serious ecological and health concerns. The pending bill must be assessed within this broader context.

Climate advocates face scrutiny as India expands coal dependence

By A Representative The National Alliance for Climate and Environmental Justice (NACEJ) has strongly criticized what it described as coercive actions against climate activists Harjeet Singh and Sanjay Vashisht, following enforcement raids reportedly carried out on the basis of alleged violations of foreign exchange regulations and intelligence inputs.

Search This Blog