Challenges faced by Gujarat’s economy include:

Income inequality
Environmental concerns
Water scarcity
Lack of infrastructure

The correct answer is: All of the above.

Gujarat is one of the most prosperous states in India, with a strong economy and a high standard of living. However, the state also faces a number of challenges, including income inequality, environmental concerns, water scarcity, and lack of infrastructure.

Income inequality is a major problem in Gujarat. The state has one of the highest Gini coefficients in India, which measures the extent of income inequality. This means that the gap between the rich and the poor is very wide in Gujarat. The state’s high level of income inequality is due to a number of factors, including the state’s reliance on agriculture, which is a low-paying sector, and the state’s lack of investment in education and healthcare.

Environmental concerns are another major challenge facing Gujarat. The state is home to a number of polluting industries, including the textile industry and the chemical industry. These industries have caused air and water pollution in Gujarat. The state also faces the problem of deforestation, which is leading to soil erosion and climate change.

Water scarcity is another major challenge facing Gujarat. The state is located in a semi-arid region and receives very little rainfall. This has led to a shortage of water for drinking, irrigation, and industrial use. The state government has taken a number of measures to address the water shortage, including building dams and reservoirs, and promoting water conservation.

Lack of infrastructure is another major challenge facing Gujarat. The state’s infrastructure, including its roads, bridges, and airports, is in need of repair and upgrade. This is due to the state’s rapid economic growth, which has put a strain on the state’s infrastructure. The state government has taken a number of measures to address the infrastructure deficit, including investing in road construction, bridge construction, and airport expansion.

The challenges facing Gujarat’s economy are complex and interrelated. The state government is working to address these challenges, but it will take time and effort to overcome them.