The economy of Gujarat is highly industrialized-the direct fallout of the state's hostile agricultural conditions. The yield from agriculture in Gujarat is distressingly poor-which is due to poor soils, inadequate rainfall, frequent droughts and floods, inadequate drainage and underdeveloped irrigation facilities.
The principal revenue generation from agriculture comes from cotton-a cash crop. The agricultural economy of Gujarat is dependent upon the seasonal cotton yields.
Gujarat ranks high in the manufacturing sector. The natural entrepreneurship of the native Gujaratis has led to an enviable resurgence of the industrial economy of Gujarat.
The industrial economy of Gujarat has crossed several economic milestones:
- During the period from 1960 to 1990, Gujarat positioned itself as a leader in a variety of industrial sectors including textiles, engineering, chemicals, petrochemicals, drugs and pharmaceuticals, cement and ceramics among others.
- The liberal Indian economic regime saw the State Domestic Product (SDP) of Gujarat clock an average growth rate of 12.4% per year.
- The industrial economy of Gujarat is greatly dependent on the availability of power. Gujarat added 35% to its existing power generation capacity after liberalization of the Indian economy
- Construction of Special Economic Zones (SEZ)
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