Gujarat

Recent development in Key sectors

• On July 17, 2025, Oil and Natural Gas Corporation (ONGC) announced it is conducting a pre-feasibility study for a prospective 2,00,000-2,40,000 barrels-per-day refinery in Jamnagar, Gujarat, as India ramps up efforts to become a global refining hub.
• Under GST 2,0, the GST rate on select key inputs used in the gems & jewellery sector in Gujarat, including zari borders and certain high-value craft components, has been cut from 12% to 5%, in a measure aimed at improving competitiveness for units operating in the Surat-Rajkot-Bhavnagar manufacturing belt.
• 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.
• Gujarat has achieved an annual milk production of 17.28 million metric tons in 2024, securing the fourth position nationwide, with output contributing 7.49% of India’s total; the state’s per-capita milk availability rose from 291 g/day in 2000-01 to 670 g/day by 2022-23.
• On April 24, 2025, Indian Oil Corporation (IOC) announced a Rs. 24,000 crore (US$ 2.72 billion) investment to establish two new petrochemical units in Gujarat, targeting production of polypropylene and butyl acrylate at its Vadodara refinery as part of its diversification into higher-value chemicals.
• In FY25, the State of Gujarat contributed a dominant 46.16% of India’s total chemical exports amounting to Rs. 1,13,011 crore (US$ 12.8 billion) of the country’s Rs. 2,52,509 crore (US$ 28.6 billion) reinforcing its position as the nation’s chemical and petro-chemical hub.
• In FY25, the Gujarat state government approved 183 new allopathic drug-manufacturing units with a total estimated investment of approximately Rs. 12,000 crore (US$ 1.36 billion), averaging around Rs. 50 crore (US$ 5.7 million) per plant.
• 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 FY26 developments:
  • Gujarat has allocated 6.4% of its expenditure on roads and bridges in FY26. This is higher than the average allocation for roads and bridges by states in FY25 4.3%
  • Rs. 10,613 crore (US$ 1.24 billion) has been allocated towards power subsidies for agriculture.
  • Rs. 12,846 crore (US$ 1.50 billion) has been allocated towards the Swarnim Jayanti Mukhya Mantri Shaheri Vikas Yojana.
  • Provision of Rs. 2,914 crore (US$ 341.2 million) has been made towards the Mission Schools of Excellence Scheme.
  • Rs. 3,491 crore (US$ 408.7 million) has been allocated towards Arogya Suraksha yojana.
  • Rs. 1,200 crore (approximately US$ 140.5 million) has been designated for FY26 to offer aid through interest subvention for farmers.
  • As of February 2025, Gujarat had a total installed power generation capacity of 57,886.85 MW, comprising 42,210.36 MW under private utilities, 8,469.86 MW (state utilities), and 7,206.63 MW (central utilities).
  • According to the Telecom Regulatory Authority of India (TRAI), Gujarat had 64.96 million wireless connections and 1.94 million wireline subscribers as of December 2024.
  • Exports of organic chemicals and inorganic from Gujarat reached Rs. 100 crore (US$ 11,740.83 million) in FY25 (until February 2025).
• In September 2024, Hindalco’s copper division is set to invest US$ 293.8 million (Rs. 2,450 crore) in 2 copper projects in Gujarat, including an e-waste recycling facility at Dahej in South Gujarat, which will have an annual production capacity of 200 kilotons of copper.
• In March 2024, Prime Minister Mr. Narendra Modi virtually inaugurated three semiconductor projects worth US$ 15.1 billion (Rs. 1.25 trillion). These include a US$ 10.99 billion (Rs. 91,000 crore) facility in Dholera, Gujarat, set to start chip production by 2026, as well as facilities in Morigaon, Assam, and Sanand, Gujarat.
• In January 2024, Car market leader Maruti Suzuki India will invest US$ 4.59 billion (Rs. 38,200 crore) in Gujarat to double its output in India to 4 million units by FY31.
• In January 2024, Reliance Industries Ltd will launch a new energy giga complex in Jamnagar, Gujarat, in the second half of 2024, according to an earnings statement and investor call. The complex spans 5,000 acres.
• In January 2024, Gujarat to host India's largest mall. The Lulu Mall project, valued at US$ 361.9 million (Rs. 3,000 crore), will start construction this year.
• 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 Center (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.
• As of October 2023, Gujarat had a total installed power generation capacity of 48,507.65 MW, comprising 33,084.08 MW under private utilities, 8454.86 MW (state utilities), and 6,968.71 MW (central utilities).
• 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.
• 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.
• Petroleum product exports from Gujarat stood at US$ 19,547.50 million in 2023-24 (April-July).
• 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.
• In May 2023, Union Home Minister and Minister of Cooperation Mr. Amit Shah laid the foundation stone of the permanent campus of National Academy of Coastal Policing (NACP) at Dwarka, Gujarat, to be built at a cost of US$ 57.32 million.
• In April 2023, Mr. Sarbananda Sonowal approved the establishment of an oil jetty at Kandla's Deendayal Port for US$ 15.05 million.
• In April 2023, Gujarat Fluorochemicals announced to invest US$ 609.86 million in EV batteries, solar and green hydrogen supply chain.
• In March 2023, Anupam Rasayan to set up three new plants in Gujarat with US$ 81.72 million investment.
• In February 2023, the Gujarat government signed 18 memorandum of understanding (MoU) worth US$ 1.20 billion under the state government's 'Aatmanirbhar Gujarat Schemes for Assistance to Industries'. It is expected to generate 10,851 employment opportunities.
• In February 2023, Mr. Parshottam Rupala launched Sagar Parikrama Phase-III from Gujarat's Hazira Port.
• In February 2023, 16 Bharat Gaurav circuits were constructed, and this Garvi Gujarat Yatra is the 17th circuit on the lines of the Government of India's "Ek Bharat Shrestha Bharat" initiative to highlight the legacy of vibrant Gujarat.
• The World Bank has loaned (Rs. 4,200 crore) for the ‘SRESTHA Gujarat’, a multi-dimensional health-oriented plan that would be implemented in the upcoming 5 years.

Gujarat continues to reinforce its position as one of India’s most dynamic economic powerhouses, driven by strong industrial capabilities, steady investment flows and a policy environment that encourages innovation and enterprise. The state’s leadership in petrochemicals, textiles, diamonds, engineering, dairy and emerging technologies reflects a diversified and future ready growth model. Large scale infrastructure expansion, strategic sectoral reforms, improved connectivity and consistent focus on tourism and services are strengthening competitiveness across regions. With major global companies investing in new manufacturing and semiconductor facilities, and with sustained government commitment to skill development, urban transformation and industrial corridors, Gujarat is well placed to maintain its momentum and emerge as an even stronger engine of national growth in the years ahead.