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Gujarat's Economy Booms: 7.4% Growth Outpaces National Average

Gujarat has recorded an economic growth rate of 7.4% for the current period, which is above the national average of 6.5%. The state's Finance Department credits this performance to sustained fiscal discipline and a focus on development expenditure. For the 2026-27 fiscal year, the government plans to keep public debt at 14.65% of GSDP, well under the statutory limit of 27.10%. The budget presented includes a total outlay exceeding Rs four lakh crore, with over 65% allocated to development-oriented spending.

Key Points: Gujarat's 7.4% Growth Rate Exceeds National Average

  • 7.4% growth beats national average
  • 8.3% average growth over 13 years
  • Public debt planned at 14.65% of GSDP
  • Over Rs 2.62 lakh crore for development
2 min read

Gujarat records 7.4 pc growth rate, above national average of 6.5 pc​

Gujarat records 7.4% economic growth, surpassing India's 6.5% average. The state outlines fiscal priorities and controlled debt for 2026-27.

"the state achieved an average real economic growth rate of 8.3 per cent - Gujarat Finance Department"

Gandhinagar, Feb 24

Gujarat has recorded an economic growth rate of 7.4 per cent, surpassing the national average of 6.5 per cent, according to details released by the state's Finance Department, which also outlined the government's fiscal position and expenditure priorities for 2026-27.​

The data show that over 13 years from 2012-13 to 2024-25, the state achieved an average real economic growth rate of 8.3 per cent.​

The government attributed the performance to sustained fiscal discipline, long-term planning, and continued focus on development expenditure.​

Under Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, the state government has been working to accelerate overall development and welfare schemes, the official statement said.​

It added that financial management has been maintained in line with statutory norms under the Fiscal Responsibility and Budget Management (FRBM) Act.​

As per the FRBM Act, public debt is required to remain within 27.10 per cent of the Gross State Domestic Product (GSDP). Against this prescribed limit, the Gujarat government has planned to keep public debt at 14.65 per cent of GSDP in 2026-27.​

The statement said the state's borrowing serves as an important resource for development works and capital expenditure undertaken in the public interest.​

In the 2026-27 budget presented by Finance Minister Kanu Desai, the total outlay exceeds Rs four lakh crore. Of this, more than Rs 2.62 lakh crore - over 65 per cent of the total budget - has been allocated for development-oriented expenditure aimed at enhancing public welfare.​

The government said it has consistently prioritised development spending over the past five years.​

The statement also detailed assistance received from the central government during natural disasters.​

Over the last five years, Gujarat received more than Rs 8,151 crore under various funds, including Rs 5,852.8 crore under the State Disaster Response Fund (SDRF), Rs 1,141.40 crore under the State Disaster Mitigation Fund (SDMF), Rs 1,076.23 crore under the National Disaster Response Fund (NDRF), and Rs 80.88 crore under the National Disaster Mitigation Fund (NDMF).​

The government stated that the combination of higher-than-average growth, controlled debt levels, and sustained development expenditure reflects its fiscal management approach.

- IANS

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Reader Comments

S
Sarah B
While the numbers look good on paper, I hope this development expenditure is actually reaching the common people. Growth is meaningless if it doesn't translate into better healthcare, education, and job opportunities for the average Gujarati family.
P
Priya S
Keeping public debt at 14.65% against a limit of 27.10% is very responsible governance. It means future generations won't be burdened. The focus on capital expenditure for development, not just populist schemes, is the right approach. More power to Gujarat!
R
Rohit P
As a small business owner in Ahmedabad, I can feel this growth. Infrastructure has improved, and there's definitely more economic activity. But the government must ensure that MSMEs get easier access to credit and that the benefits percolate beyond the big cities.
K
Karthik V
The disaster relief funds mentioned are crucial. Gujarat faces cyclones and floods. It's good to see a detailed account of where the money comes from (SDRF, NDRF). Transparency in how these funds are used for mitigation is equally important.
M
Michael C
Interesting data point for investors. Gujarat's disciplined fiscal management and above-average growth make it a very attractive destination. The debt-to-GSDP ratio is particularly healthy compared to many other states in India.

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