The State Government of Gujarat has launched a fund of about Rs 60 crore, in order, to encourage innovation among the small and medium enterprises (SMEs). It is found that total 78 percent of jobs created in the year 2007 to 2009 belonged to the SMEs and the agricultural sector.

In an interactive meeting the Chief Minister Narendra Modi said, “One of the main focus areas for the government is SMEs. We don’t have raw materials in the state, but we have still attracted large investments in the manufacturing sector. This was because of SMEs and they are our assets.”

It is expected that the state will see a job rise by around 300,000 in the next three years duration. Initiative is also being taken to improve on quality and this fund of Rs 60 crore is directed toward making SMEs more competitive. The fund will also be a boost for manufacturing, marketing and innovations.

It is also true that 3,346 MoUs that entails investments worth $240 billion have been signed in the 2009. Of these 1,800 are related to the SMEs.  In the span of next three years, implementation of 90 percent of the MoUs shall be completed. It is estimated that three lakh jobs will be created by implementing these MOUs in the state of Gujarat. A special convention termed as ‘Vibrant Gujarat 2011’ is planned to be organized and this will include around 5000 delegates.