Gujarat’s strong fiscal management has provided a stable foundation for infrastructure development, industrial growth, and investment. Dr. T. Natarajan, IAS, Additional Chief Secretary, Finance Department, Government of Gujarat, in an exclusive interview with Abhineet Kumar & Elma Fatima of Elets News Network, shares insights on the State’s fiscal strategy, capital investment priorities, and the role of sound public finance in supporting Gujarat’s long-term economic growth.
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Gujarat has been one of India’s fastest-growing economies. How do you see the Finance Department’s role in sustaining this momentum?
Over the past two decades, Gujarat has strengthened its position as one of India’s leading economies, with its share in the national economy increasing from around 5 per cent to over 8 per cent. The Finance Department provides the fiscal foundation for this growth by ensuring financial stability, prudent resource management and sustained investment in infrastructure and public services. Our priority is to maintain sound public finances while creating fiscal space for productive capital expenditure. Stable policies, responsible borrowing, and disciplined financial management have enabled Gujarat to invest consistently in infrastructure and industrial development, supporting long-term economic growth.
Investors often cite Gujarat’s stability and predictability. How does fiscal prudence translate into investor confidence and industrial growth?
Fiscal discipline creates confidence among investors by ensuring stability and policy continuity. Gujarat has consistently maintained its fiscal deficit within the limits prescribed under the Fiscal Responsibility and Budget Management framework, while keeping public debt below 15 per cent of Gross State Domestic Product. This prudent approach enables the State to sustain infrastructure investment, honour policy commitments and maintain a predictable business environment. For industries making long-term investments, such stability reduces uncertainty and strengthens confidence in Gujarat as an investment destination.
The 2026–27 Budget places strong emphasis on capital expenditure. How does this support industrial development?
The 2026–27 Budget, with an outlay of approximately ₹4.08 lakh crore, places significant emphasis on capital expenditure to support infrastructure-led growth. Investments in roads, ports, logistics, power, water and urban infrastructure reduce the cost of doing business and improve industrial competitiveness. Well-planned public investment also encourages private investment by creating the infrastructure required for industrial expansion. The Budget has increased capital expenditure while maintaining fiscal discipline, ensuring that infrastructure development remains sustainable and continues to support Gujarat’s long-term industrial growth.
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Beyond the Budget, how does the Finance Department enable the State’s broader investment and industrial agenda?
The Finance Department works closely with departments responsible for industry, infrastructure and investment to ensure that development priorities are supported through sustainable financing. This includes providing fiscal support for infrastructure projects, industrial incentives and policy initiatives while ensuring efficient and transparent utilisation of public resources. The Department also focuses on strengthening revenue mobilisation and financial management systems. Gujarat’s growing role in financial services, supported by GIFT City and the International Financial Services Centre, further reinforces the State’s position as both a manufacturing and financial hub.
As the Vibrant Gujarat Regional Conference focuses on Central Gujarat, what is the significance of the region in this growth story?
Central Gujarat is one of the State’s major industrial regions, with strengths in chemicals, pharmaceuticals, engineering, agro-processing and advanced manufacturing. It contributes significantly to Gujarat’s manufacturing output and benefits from strong infrastructure, industrial clusters and skilled human resources. Continued investment in infrastructure, supported by sound fiscal management and a stable policy environment, has strengthened the region’s competitiveness. The Vibrant Gujarat Regional Conference provides an important platform to showcase these strengths and facilitate engagement between industry, investors and government.
Looking ahead, what is your vision for Gujarat’s fiscal roadmap, and your message to investors gathered at VGRC?
Our focus is to maintain Gujarat’s strong fiscal position while supporting sustained economic growth. This includes continued investment in infrastructure and human capital, strengthening revenue systems, improving the quality of public expenditure, and leveraging technology to enhance financial governance. Gujarat offers investors a stable policy environment, sound public finances and a sustained commitment to infrastructure development. These strengths provide a strong foundation for long-term investment and continued partnership in the State’s growth journey.