Gujarat is located on the western coast of India and has the longest coastline of 1,600 kms in the country. Gujarat is one of the highest growth states in the country.
Gujarat is one of the leading industrialised states in India. The Gross State Domestic Product (GSDP) of Gujarat for FY27 (at current prices) is Rs. 33.24 trillion (US$ 361.38 billion). Gujarat’s GSDP increased at a CAGR of 11.25% between FY16 and FY27BE.
According to the DPIIT, FDI inflows in Gujarat stood at Rs. 3,98,236 crore (US$ 50.62 billion) from October 2019-March 2026.
There are 13 major industry groups that together account for around 82.05% of total factories, 95.85% of total fixed capital investment, 90.09% of the value of output and 93.21% of value addition in Gujarat's industrial economy. Gujarat ranked 1st in Export Preparedness Index 2021. In FY26, the State of Gujarat contributed a dominant 46.16% of India’s total chemical exports amounting to Rs. 1,08,259 crore (US$ 12.24 billion) of the country’s Rs. 2,50,567 crore (US$ 28.33 billion) reinforcing its position as the nation’s chemical and petro-chemical hub.
Gujarat is a leader in industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewellery, textiles and engineering. The industrial sector comprises of over 800 large industries and 453,339 micro, small and medium enterprises.
Gujarat has over 3,300 pharmaceutical manufacturing units, which contributed 30-35% to India’s pharma sector’s turnover and around 28% to India’s pharma export during 2018-19. Gujarat has over 3,300 pharmaceutical manufacturing units, which contributed 30-35% to India’s pharma sector’s turnover and around 28% to India’s pharma export during 2018-19.
As of April 2026, Gujarat had a total installed power generation capacity of 72,932 MW, comprising 39,249.68 MW under private utilities, 22,896.29 MW (state utilities), and 10,782.71 MW (central utilities).
As of December 2025, Gujarat has 22 operational SEZs spanning multiple sectors, including textiles, pharmaceuticals, engineering, chemicals, electronics/IT, and port-based multi-product zones.
In 2025-26, the secondary sector contributed 42.87% to the state’s GSDP (at current prices), followed by tertiary (39.16%) and primary (17.97%) sectors.
Following is some of the major initiatives taken by the Government to promote Gujarat as an investment destination:
- On January 11, 2026, the development of 14 greenfield Gujarat Industrial Development Corporation (GIDC) estates was announced to strengthen industrial infrastructure across the state. The initiative is expected to facilitate new investments, support manufacturing expansion and enhance industrial competitiveness across Gujarat.
- GIDC Medical Device Park in Rajkot was inaugurated to strengthen Gujarat’s medical devices manufacturing ecosystem. The project is expected to promote domestic manufacturing, attract investments and support the growth of the healthcare technology sector in the state.
- Vibrant Gujarat Regional Conference for Kutch and Saurashtra were organised with a focus on sectors such as ceramics, engineering, ports and logistics, fisheries, petrochemicals, agro and food processing, minerals, green energy, tourism, startups and MSMEs. The initiative is aimed at promoting region-specific industrial development and attracting investments across high-growth sectors.
- On September 30, 2025, the Government of Gujarat announced that its upcoming industrial policy will extend comprehensive incentives to the services sector currently contributing 35.8% of the State’s GSDP with proposed benefits including a capital subsidy of 35% of eligible fixed costs for enterprises hiring at least ten employees, as well as interest, lease-rental, internet, server-cost and EPF-reimbursement subsidies.
- On September 11, 2025, the Government of Gujarat unveiled plans to boost aviation infrastructure by developing two greenfield airports at Dahod and Dwarka. The Dahod airport will serve passenger and industrial demand in eastern Gujarat, while the Dwarka airport, located near a major pilgrimage site, will enhance tourism and strategic connectivity.
- Gujarat’s textile sector has received a major boost through recent GST 2.0 reforms, with the rate on zari borders and traditional handicrafts such as Kutchi embroidery, Bandhani tie-dye, and Sankheda lacquerware reduced from 12% to 5% to enhance affordability and market competitiveness. Surat, which contributes around 40% of India’s man-made fabric production and nearly 18% of textile exports, stands to benefit significantly from the move, supporting employment and export growth across the State’s textile hubs.
- On August 25, 2025, Prime Minister Mr. Narendra Modi inaugurated multiple railway projects in Gujarat worth over Rs. 1,400 crore (US$ 158.5 million), including the doubling of the 65 km Mehsana-Palanpur rail line and gauge conversion of the 37 km Kalol-Kadi-Katosan Road rail line and 40 km Bechraji-Ranuj rail line aimed at enhancing connectivity, improving freight and passenger capacity, and boosting regional economic integration.
- On February 21, 2025, the Gujarat government announced the roll-out of new tourism circuits, supported by a 31% increase in tourism sector funding to Rs. 6,505 crore (US$ 736 million), which includes construction of 150 new roads, deployment of 200 air-conditioned buses and 10 caravans with a budget of Rs. 360 crore (US$ 40.8 million) to connect 25 tourist and pilgrimage destinations, and an initial Rs. 15 crore (US$ 1.7 million) earmarked for basic facilities and new circuit development.
- State budget FY27 developments:
- Gujarat allocated Rs. 29,709 crore (US$ 3.23 billion) to the Roads and Buildings Department in FY27. The budget includes Rs. 10,008 crore (US$ 1.09 billion) for roads and bridges, Rs. 5,600 crore (US$ 608.7 million) under Mukhyamantri Gram Sadak Yojana and Rs. 800 crore (US$ 87.0 million) for the Garvi Gujarat High-Speed Corridor.
- The Urban Development and Urban Housing Department received an allocation of Rs. 33,504 crore (US$ 3.64 billion) in FY27, including Rs. 16,116 crore (US$ 1.75 billion) under Swarnim Jayanti Mukhyamantri Shaheri Vikas Yojana, Rs. 2,217 crore (US$ 241.0 million) for Ahmedabad and Surat Metro projects and Rs. 1,420 crore (US$ 154.3 million) under Pradhan Mantri Awas Yojana (Urban).
- The Education Department received an allocation of Rs. 63,184 crore (US$ 6.87 billion) in FY27. The budget includes Rs. 3,055 crore (US$ 332.1 million) under Mission Schools of Excellence and provisions for expansion of PM SHRI Schools and higher education infrastructure.
- The Health and Family Welfare Department received Rs. 25,403 crore (US$ 2.76 billion) in FY27, including Rs. 3,472 crore (US$ 377.4 million) under Pradhan Mantri Jan Arogya Yojana (MA) and Rs. 1,851 crore (US$ 201.2 million) for GMERS hospitals.
- The Agriculture, Farmers Welfare and Cooperation Department was allocated Rs. 24,022 crore (US$ 2.61 billion) in FY27, including Rs. 11,000 crore (US$ 1.20 billion) under the Agriculture Relief Package, Rs. 9,324 crore (US$ 1.01 billion) for electricity assistance to farmers and Rs. 1,565 crore (US$ 170.1 million) for farm mechanisation.
- The Energy and Petrochemicals Department received Rs. 4,842 crore (US$ 526.3 million) in FY27. Major allocations include Rs. 1,166 crore (US$ 126.7 million) for agricultural electricity connections, Rs. 500 crore (US$ 54.3 million) under Kisan Suryoday Yojana and Rs. 200 crore (US$ 21.7 million) under PM-KUSUM.
- According to the Telecom Regulatory Authority of India (TRAI), Gujarat had 71.43 million wireless connections and 2.66 million wireline subscribers as of March 2026.
- In November 2023, the Gem & Jewellery Export Council (GJEPC) the apex body to promote exports of gems and jewellery in India, partnered with the American multinational, FedEx Corporation.
- In November 2023, the Chief Minister inaugurated the state-wide ‘Ravi Krishi Mahotsav 2023, which aims to offer guidance to the state’s farmers on modern agricultural technology concerning seasonal crops and provide insights into various farmer-oriented support schemes.
- In November 2023, Chief Minister Mr. Bhupendra Patel approved the Full Dealer Owned Dealer Operated-(FDODO) CNG scheme which would be implemented by Gujarat Gas Limited and Sabarmati Gas Limited.
- In October 2023, IT SEZ with an investment of Rs. 8,000 crore (US$ 960.37 million) might come up in the city.
- In October 2023, a MoU was signed between the Indian National Space Promotion and Authorization Centre (IN-SPACe) and the Government of Gujarat, for the development of a space manufacturing cluster in the city near Ahmedabad.
- In October 2023, the Gujarat government set up a development authority for the Becharaji region. The Mehsana district collector has been appointed chairperson of the authority.
- In October 2023, the Petronet LNG board approved the setting up of a petrochemical plant in Dahej, Gujarat with an estimated cost of Rs. 20,685 crore (US$ 2.48 billion).
- In September 2023, the Gujarat Maritime Board (GMB) revived plans to build ‘Port City,’ an ambitious project conceptualized on the lines of established global maritime hubs like Dubai and Singapore.
- In August 2023, 36 railway projects worth Rs. 30,789 crore (US$ 3.69 billion) were underway in Gujarat.
- During the fiscal year 2023-24 (April-September), aircraft movement was 50,394, passenger traffic was 6.85 million, and cargo traffic was 52,847 million tonnes.
- In July 2023, 15 companies signed MoUs worth Rs. 2,000 crore (US$ 240.09 million), for investments in the biotech sector.
- In July 2023, an MoU has been signed between the State and Central government at Surat for the construction of PM MITRA Park on 1,141 acres at Vansi Borsi in Navsari, Gujarat.
- According to the Telecom Regulatory Authority of India (TRAI), Gujarat had 65.27 million wireless connections and 1.21 million wireline subscribers as of March 2023. As of March 2023, the state had 52.54 million internet subscribers.
- In June 2023, Google to set up Global FinTech Operations Centre in Gujarat's Gift City.
- In June 2023, Union Minister of Road Transport & Highways, Mr. Nitin Gadkari dedicates two National Highway projects worth US$ 5.85 million in Vadodara, Gujarat.
- In June 2023, Union Home Minister and Minister of Cooperation, Mr. Amit Shah inaugurated the National Convention of Modi Samaj in Ahmedabad, Gujarat.
Gujarat continues to reinforce its position as one of India’s most competitive and forward-looking growth engines, supported by strong industrial capabilities, steady infrastructure expansion and a policy environment that consistently attracts large scale domestic and global investment. The state’s dominance across chemicals, petrochemicals, pharmaceuticals, textiles, engineering and emerging technology sectors reflects a diversified and resilient economic base. Ongoing reforms to strengthen connectivity, digital infrastructure, tourism, services and social development further underline the government’s commitment to balanced and inclusive growth. With sustained progress in industrial corridors, renewable energy, port led development and innovation driven clusters, Gujarat is well placed to deepen its economic leadership and play an even stronger role in driving India’s long term growth trajectory.
