Introduction

As India’s most industrialized state, Gujarat recorded a Gross State Domestic Product (GSDP) of ₹25.63 trillion (US$ 309.54 billion) at current prices in 2023-24, reflecting a 13.36% year-on-year growth. The state contributed 8.6% to India’s GDP in 2022-23 (India Brand Equity Foundation, n.d.). Key industries—including chemicals, petrochemicals, textiles, engineering, oil & gas, and dairy—serve as economic drivers while also contributing significantly to carbon emissions.

In 2020, emissions from Gujarat’s industrial sector were estimated at 83,535 Gigagrams of CO₂e, the highest recorded level, based on available data primarily from the mineral and metal industries. However, data limitations restricted comprehensive accounting of emissions from other industrial processes and product use (IPPU) sectors. A more granular dataset covering all IPPU sub-sectors is essential for formulating targeted decarbonization strategies and aligning Gujarat’s industrial growth with net-zero ambitions.

Data Landscape

Accurately estimating emissions from the Industrial Processes and Product Use (IPPU) sector requires granular data across multiple sub-sectors, including chemicals, metal production, minerals, electronics, and other manufacturing processes. Key parameters include production volumes, raw material inputs, energy consumption patterns, process-specific emission factors, and carbon capture or mitigation measures. However, data availability remains a challenge, with existing records often fragmented, inconsistent, or limited to select industries such as cement, steel, and fertilizers.

Data Requirements & Availability

Data availability for Gujarat’s Industrial Processes and Product Use (IPPU) sector is highly uneven, with significant gaps across sub-sectors. Unlike the energy sector, where government departments provide baseline datasets, IPPU emissions estimates rely on a mix of limited government data and individual company reports, leading to inconsistencies in coverage and methodology. 

Of the ten IPPU sub-sectors, data is available only for Minerals (2A), Chemicals (2B), and Metals (2C). Even within these, coverage is incomplete. The Minerals sub-sector includes only cement and lime production, while the Metals sub-sector is limited to iron & steel and aluminum. In the Chemicals sub-sector, the absence of official government data necessitated reliance on company annual reports, meaning emissions estimates primarily reflect major industry players rather than the sector as a whole.

For the remaining IPPU sub-sectors (2D to 2H) —including electronics, product use, and other manufacturing industries—state level production data is unavailable, making emissions estimation highly uncertain. Additionally, existing data lacks granular process-level breakdowns, limiting the ability to capture emissions variations across production techniques.

Sectoral Insights

Secondary research indicates that state-level data is available for the mineral and metal industries, while comprehensive data for the chemical sector remains limited. Mineral sector data was sourced from the Indian Minerals Book, a government publication, and metal sector data from the National Data and Analytics Platform. For the chemical industry, emissions estimates rely on data from major producers in the state due to the absence of aggregated state-level datasets. This limitation prevents the inclusion of chemical sector emissions in the following analysis.

In 2020, emissions from Gujarat’s IPPU sector were estimated at 83,535 Gigagrams of CO₂e, the highest recorded, based solely on mineral and metal industry data. Cement production accounted for the largest share of emissions, followed by iron & steel and aluminum, with lime production contributing the least. Emissions from cement, iron & steel, and lime production remained relatively stable, while aluminum production saw a sharp increase in 2018, followed by a decline and stabilization in 2020 and 2021.

Mineral Industry
Studies consistently identify the mineral industry as a major emitter within the IPPU sector, with significant emissions from cement, lime, glass, ceramics, and related materials. This analysis includes emissions from cement and lime production, with activity data sourced from the Indian Minerals Book. However, the absence of aggregated state-level data for glass, ceramics, and similar materials prevents their inclusion in the emissions estimates.

Cement production emissions exhibit a rising trend—except for a dip in 2019—ranging from 41,594 to 74,185 Gigagrams of CO₂e. Key cement producers in Gujarat include Ambuja Cement and ACC Cement. Lime production emissions, in contrast, remain lower, fluctuating between 14 and 19 Gigagrams of CO₂e, with major producers such as UltraTech, Ambuja Cement, and Jaiprakash Associates.

Gujarat’s Mining Policy, introduced in 2003 and accelerated in 2010, played a pivotal role in expanding cement production capacity, facilitating the establishment of new cement plants and mineral-oriented industries. Estimates suggest an increase of 22 million tonnes in cement production capacity (Construction World, n.d.), largely driven by policy incentives and industry expansion efforts.

Chemical Industry 

Gujarat plays a key role in India's chemical and petrochemical industries, contributing around 53% to the nation’s chemical manufacturing (Press Information Bureau, n.d.). Consequently, the state records the highest emissions in this sector.

Emissions in the chemical industry primarily stem from the production of ammonia, nitric acid, adipic acid, caprolactam, glyoxal, glyoxylic acid, carbide, titanium dioxide, and soda ash. This analysis includes emissions data for ammonia, nitric acid, caprolactam, soda ash, methanol, and carbon black, sourced from annual reports of major chemical producers in Gujarat. However, the absence of state-level production data for adipic acid, glyoxal, glyoxylic acid, carbide, and titanium dioxide limits the scope of this assessment, and emissions from these processes are not included in the analysis.

In Gujarat, KRIBHCO, GNFC, and IFFCO are the major ammonia producers for which data is available. Emissions from ammonia production have remained stable from 2013 to 2024, with only minor fluctuations, indicating steady production levels over the period.

For nitric acid production, GNFC is the sole major producer in the state. Emissions data shows a gradual increase from 2013 to 2020, followed by a decline in 2021, before stabilizing in subsequent years. The temporary reduction in 2021 may be attributed to supply chain disruptions caused by the COVID-19 pandemic. Overall, emission trends in both ammonia and nitric acid production align with the installed manufacturing capacity, reflecting a consistent operational scale.

GSFC is the primary producer of caprolactam in Gujarat, with emissions remaining relatively stable from 2013 to 2024, fluctuating around 750 tonnes of CO₂e. Notably, emission peaks in 2015 and 2019 may indicate periods of higher production demand or operational scaling.

For soda ash production, GHCL is the major producer with reported data. Emissions exhibited an upward trend from 2015 to 2020, likely driven by capacity expansions or increased market demand. The decline in 2021 coincides with broader industry slowdowns, potentially linked to supply chain constraints or reduced industrial activity. Emissions rebounded over the next two years, suggesting a recovery phase, before declining again in 2024, possibly due to operational optimization or efficiency improvements. These fluctuations highlight the sector's sensitivity to market dynamics, production capacity adjustments, and external economic factors.

For methanol, GNFC is the primary producer in Gujarat, with emissions showing an initial increase, followed by a drop in 2015. A peak in 2018 suggests a period of heightened production, after which emissions exhibited a gradual decline, except for notable deviations in 2021 and 2024. These variations likely reflect shifts in production output, market demand, or operational adjustments.

For carbon black production, PCBL operates facilities in Palej and Mundra, with available data indicating stable emissions levels since 2021. This consistency suggests that installed manufacturing capacity has remained unchanged, maintaining a steady production scale.

Although the lack of aggregated state-level data constrains comprehensive emissions assessment, industry trends indicate ongoing sectoral growth. The Gujarat government recently signed four MoUs totaling ₹1,401 crore in proposed chemical sector investments (Desh Gujarat, n.d.). Additionally, the Production Linked Incentive (PLI) Scheme introduced by the finance ministry aims to support the specialty chemical segment, which continues to experience strong domestic and international demand (Indian Express, n.d.). These policy and investment initiatives are expected to drive further expansion in Gujarat’s chemical industry, potentially influencing future emissions trends.

Metal Industry

The metal industry is the third-largest emitter within Gujarat’s Industrial Processes and Product Use (IPPU) sector, following the chemical and mineral industries. Emissions primarily stem from the production of iron & steel, ferroalloys, aluminium, magnesium, lead, and zinc.

This analysis includes emissions data for iron & steel and aluminium production, sourced from the National Data and Analytics Platform. Among these, iron & steel production is the dominant contributor, reflecting Gujarat’s position among India’s top 10 steel-producing states. However, the absence of state-level aggregated data for ferroalloys, magnesium, lead, and zinc limits the scope of this assessment, and emissions from these processes are not included in the analysis.

The lack of comprehensive data underscores the need for improved reporting mechanisms, as enhanced sectoral insights would be critical for informed decarbonization strategies and aligning Gujarat’s industrial growth with its net-zero ambitions.

Iron & steel production in Gujarat remained stable between 2017 and 2021, with key producers including Aditya Ultra Steel Limited, SAL Steel Limited, and Arcelor Mittal. The second phase of Arcelor Mittal’s Hazira steel plant, expected to be completed by 2029, will make it the world’s largest steel plant, with a production capacity of 24 million tonnes (Economic Times, n.d.). This expansion is set to drive significant growth in steel production, but it will also lead to a substantial rise in emissions. Additionally, Gujarat ranks among India’s top 10 steel consumers, reflecting its strong industrial demand.

Aluminium production exhibited a declining trend from 2018 to 2021, following minimal output in 2016 and 2017. While bauxite serves as the primary raw material, its extraction in Gujarat faces several challenges, including environmental concerns, land acquisition disputes, opposition from tribal communities, and regulatory hurdles. These constraints have directly impacted aluminium production capacity, highlighting the complex interplay between resource availability, environmental policy, and industrial development.

Bridging Data Gaps

Accurate emissions estimation in Gujarat’s Industrial Processes and Product Use (IPPU) sector depends on the availability of high-quality production data. While government sources provide comprehensive state-level data for the mineral and metal industries, similar data for the chemical industry remains unavailable. Given Gujarat’s 11,000 chemical manufacturing units, reliance on annual reports from major producers only captures a partial picture, leaving emissions from smaller producers unaccounted for.

Additionally, data is entirely unavailable for several manufacturing and product-use sectors, including lubricants, solvents, electronics, ozone-depleting substances, paper, pulp, and food processing. This lack of granular data limits the accuracy of emissions estimates, posing a challenge for effective decarbonization strategies.

With IPPU being the second-largest emitting sector after energy, bridging these data gaps is critical for Gujarat to design targeted interventions, support low-carbon industrial growth, and advance towards its net-zero commitments.

Key Recommendations

To address these data gaps, a structured and transparent reporting mechanism is essential:

1. Government-Led Data Reporting

   • The Ministry of Industries could host an annual public report on sector-wise production data, similar to the other ministries. One good example is the Ministry of Petroleum and Natural Gas’ reporting on petroleum products.

   • Companies could report their production data using a standardized format, including:

     • Industry Type (e.g., chemicals, electronics)

     • Products (e.g., ammonia, semiconductors)

     • Technology Used

     • Production Volume (tonnes)

     • Reporting Year

2. Expanding Corporate Reporting Obligations

   • Currently, 1,000 listed companies submit Business Responsibility and Sustainability Reports (BRSR), covering sustainability, transparency, and supply chain data.

   • A phased expansion of this reporting requirement could include Gujarat-based industries above a specified installed capacity, ensuring progressive coverage across all industrial sectors.

3. Ensuring Data Privacy and Accessibility

   • The government can aggregate reported data on a public platform while safeguarding individual company-level information through legal agreements.

   • This approach would balance transparency with confidentiality, fostering industry participation in emissions reporting.

4. Advancing Towards Real-Time GHG Monitoring

   • In the long term, industries can transition to sensor-based, real-time greenhouse gas (GHG) monitoring rather than relying on estimated emissions.

   • This would allow for more precise emission factors, ensuring accurate tracking of industrial decarbonization progress.

By enhancing data collection, standardization, and real-time monitoring, Gujarat can strengthen evidence-based policymaking, improve industrial emissions accountability, and accelerate its transition towards net-zero emissions.

Summary

The Industrial Processes and Product Use (IPPU) sector is Gujarat’s second-largest emitter after energy, with significant emissions from mineral, metal, and chemical industries. While state-level data is available for cement, lime, iron & steel, and aluminium production, the chemical sector lacks comprehensive data, limiting emissions estimates. Major producers report their data, but emissions from smaller chemical manufacturers remain unaccounted for.

Data gaps also persist for several manufacturing and product-use sectors, including lubricants, solvents, electronics, and ozone-depleting substances. Strengthening state-level data collection is crucial for accurate emissions accounting and effective decarbonization planning. Establishing a standardized reporting mechanism, expanding corporate disclosures, and eventually transitioning to real-time GHG monitoring can enhance data transparency and industrial accountability.

Addressing these challenges will enable evidence-based policymaking, support low-carbon industrial growth, and accelerate Gujarat’s pathway to net-zero emissions, ensuring a sustainable future for the state’s industrial sector.