According to the Gross Value Addition data released by the Reserve Bank of India Gujarat grew at a staggering 15.9% annually to Rs 5.11 lakh crore between Financial Year 2012 to Financial Year 2020. Continuous improvement in ease of doing business and business-friendly Government has paved the way for Gujarat in becoming number one. Maharashtra stood at number 2 with a growth rate of 7.5% per annum to Rs 4.34 lakh crore.
Gross Value Addition is an economic productivity metric that measures the contribution of a corporate subsidiary, company, or municipality to an economy, sector, or region. GVA is important as it is used to adjust GDP.
Gujarat was able to top the charts with increased overall investment which pushed the manufacturing growth in the state. Many factors played a key role in helping Gujarat achieve this feat. Government easing labor laws in favor of the industry, a single-window clearance system for the businesses made it the most attractive destination for Foreign Direct Investment.
Rajasthan, Telangana, and Andhra Pradesh are among the worst performer states. States doing excellent in the services sector are Maharashtra, Tamil Nadu, and Karnataka. Their service GVA is the highest in the country.