A Macro and Fiscal Landscape of the State of Gujarat

All the above parameters have made the State an attractive investment destination.1 It is also ready to take the next leap into a higher orbit, escaping the trap that has afflicted a majority of middle-income economies around the world-- a reference to the economic slowdown in countries at middle-income levels that hampers their transition to a high-income status. [...] Besides, a very basic indicator of gender parity, the sex ratio in the age group 0-6 (measured as the number of females per 1000 males) in the State remained below national average until recently, and surpassed it only in the latest National Family and Health Survey. [...] Further-more, Gujarat employs (measured as distribution of workers in usual status) 42.0 percent of its workers in agriculture sector, about 32 percent in the industry, and the remaining 26 percent in the services sector. [...] Its literacy rate has increased from 69 percent to 78 percent between the last two Census rounds, crossing the national average of 73 percent.3 Life expectancy currently stands at 70.5 years, at about the same level as the national figure.4 The infant mortality rate declined from 41 to 23 deaths per 1000 live births between 2011 and 2020, and is now below the national average of 28 deaths per 1000. [...] In line with the recommendations of the 13th FC, an amendment was made in 2011 to limit the total outstanding liabilities of the State to 27.1 percent of GSDP from the previous limit of 30 percent in the GFR Act, 2005 and GFR Act, 2009.