Business Opportunities in Gujarat, India for UK & European Companies

Introduction

Gujarat is one of the leading states for foreign investment in India, thanks to its investor-friendly policies, extensive industrial infrastructure, and strategic connectivity. CEO of Micron Technology, Sanjay Mehrotra, states, “We were confident this investment would help catalyse other investments, encourage innovation, and support broader job creation.” The company is reportedly all set to make an investment of 2.75 billion USD in Gujarat. It shows that Gujarat is rapidly becoming the preferred destination for international companies seeking growth in sectors like chemicals, petrochemicals, textiles, pharmaceuticals, renewable energy, food processing, and electronics.

Gujarat Economic and Industrial Landscape

Gujarat has always had a way of turning ambition into results. The state’s latest plan, Viksit Gujarat @2047, is about taking that same energy into the future. It looks at how Gujarat can grow into a strong, high-income, and sustainable economy by the time India turns 100 as an independent nation. The focus is not only on industry but also on people and on creating business opportunities in Gujarat that reach every part of society.

The state’s roadmap sets the course for expanding its economy from $259 billion in FY22 to nearly $3.5 trillion, with per capita income rising beyond $38,000. As Chief Minister Bhupendra Patel said, “This is not merely a roadmap but a testament to our commitment that builds a future that nurtures aspirations and leaves no one behind.” Gujarat’s mix of innovation, opportunity, and resilience continues to make it a preferred choice for foreign investment in India.

GSDP Performance: Gross State Domestic Product of Gujarat for the year 2023-2024 stood at approximately 309 billion USD with a remarkable year-on-year growth rate of 13.36 %. Such numbers reflect the state’s capacity for a sustained economic expansion.

Sector Contribution: The industrial sector contributes nearly 44.5% of the state’s GDP, while services contribute around 36.1% and agriculture 20%. It indicates that the state has a strong manufacturing base. Such a diversified economy reduces dependency on any single sector and provides a sense of stability for the investors.

Industrial Growth: The Index of Industrial Production for Gujarat grew by 4% in September 2025, signalling recovery and continuous expansion across major industries. This upward trend reflects an environment conducive to industrial investment.

Per Capita Income: The Per capita income of Gujarat is approximately 60% higher than the national average. It highlights higher productivity and a better standard of living, which adds up to skilled labour availability for business.

Export Leadership: Gujarat leads India in exports, which include Petroleum products, chemicals, and engineering goods, showcasing its capability to handle large-scale manufacturing and international trade. These exports contribute approximately 26% of the country’s total exports in FY2025.

Government Policies and Schemes

Gujarat’s success with investment is no accident. The government has built it step by step with clear policies, transparent systems, and a genuine focus on business ease. Each initiative adds another layer of trust, helping global companies see Gujarat as a place where growth feels simple and sustainable.

Global Capability Centre (GCC) Policy 2025–30:

The GCC policy is one of the key drivers of Gujarat’s new growth phase. It encourages companies in sectors like semiconductors, green hydrogen, electronics, and IT/ITES to set up operations in the state. Benefits include capital subsidies of up to 30%, support for operational expenses, and energy incentives. The initiative is also expected to create close to 50,000 skilled jobs by 2030.

International Financial Services Centre (IFSC) at GIFT City:

GIFT City in India has become one of biggest success stories. As India’s first IFSC, it offers companies a 10-year tax holiday and smooth international capital flow. Its transparent regulatory setup and strong infrastructure are helping Gujarat take its place among major global financial hubs.

Digital Single-Window Clearance System:

The state’s digital clearance platform has brought efficiency to the investment process. All approvals are available in one place, reducing waiting times and paperwork. It is one of the key reasons Gujarat is now seen as investor friendly.

Skill Development and Labour Norms:

The state also invests in its people. Skill programs and technical training initiatives prepare workers for high-value industries, while labour systems remain transparent and predictable. For global companies, it means finding the right mix of talent and trust. The state has taken a practical route to preparing its workforce. Through schemes like the Kaushalya Vardhan Kendra and Mukhyamantri Apprentice Scheme, it gives young people a mix of classroom and on-the-job training. It’s a balanced approach to have strong industry on one side, skilled people and clear labour norms on the other.

iNDEXTb or Industrial Extension Bureau is a state’s nodal agency for investment promotion and facilitation. It is a one stop-shop of the Government that facilitates investors looking for incentives, requisite approvals and business opportunities in Gujarat. iNDEXTb role is to provide guidance to the investors through policies, incentives, and project approvals.

Infrastructure and Connectivity

Gujarat has impressive manufacturing capabilities and investment opportunities, thanks to its state-of-the-art infrastructure and excellent connectivity. With its robust industrial base, strategic location, advanced port facilities, and extensive road and rail networks, this state everything that a foreign investor needs when looking for business opportunities in Gujarat.

Power Generation: The state’s installed power capacity reached 57,886.85 MW by February 2025, predominantly through private utilities, ensuring an uninterrupted energy supply for industrial operations.

Road Infrastructure: Approximately 928 million USD has been approved for 124 road projects in 2025, including nine high-speed corridors spanning 809 km under the Garvi Gujarat initiative. These projects reduce travel time and strengthen supply chain efficiency.

Mega infrastructure projects to connect investment-friendly zones

Delhi-Mumbai Industrial Corridor: DMIC is considered one of the major industrial routes, with six development nodes in Gujarat. It has world-class logistics and manufacturing zones. It also integrates the dedicated Freight Corridor to improve goods transport, especially across Ahmedabad and Dholera.

Dholera Special Investment Region: DSIR is a smart city zone covering approximately 920 sq.km. It offers ready-to-use industrial land and modern utilities. Nearby expressway and an upcoming international airport further add to the connectivity of this zone. With such a promising future, various manufacturing and renewable energy investments have already been made.

Mandal Becharaji Special Investment Region: MBSIR is home to automotive manufacturers and component suppliers. It provides integrated infrastructure for vehicle production and exports.

Mumbai-Ahmedabad High-Speed Rail: A bullet train project with a goal to connect Gujarat with Mumbai via high-speed trains. It will cut down the travel time to less than three hours between these 2 cities, which currently takes around five to six hours. With a vision to boost tourism and business support, this route is expected to be operational by 2029.

Petroleum, Chemicals, and Petrochemicals Investment Region: PCPIR is a designated area of around 250 km to attract major investment in the petroleum, chemicals, and petrochemical industries. With external infrastructure like roads, rail, and port connectivity, the region is designed to promote employment opportunities and industrial growth in Gujarat.

Gujarat International Financial Tech City: Located in Gandhinagar, GIFT City, Gujarat is India’s first operational smart city. It comes with tax benefits, world-class infrastructure, and regulatory ease, making it an ideal choice for any business. With the primary objective of bringing back financial services transactions, this city was designed to rival other global financial hubs like Singapore, Dubai, and London.

Diamond Research and Mercantile City: DREAM City is another upcoming smart city in Surat, Gujarat. Developed on 700 to 800 acres, this city is designed to support the growth of the diamond and textile industry in Surat.

Special Economic Zones in Gujarat

Gujarat has around 24 notified and 28 approved SEZs, with 21 currently in operational state. These zones provide tax incentives and simplified approvals supporting exports and promoting foreign investment in India.

Port Infrastructure in Gujarat

Thanks to its 49 ports, Gujarat handles around 40% of India’s total port cargo. Some of the notable ports are Kandla, Mundra, Pipavav, Dahej, and Hazira. The construction of Greenfield ports will further enhance maritime connectivity and boost trade. Recent upgrades to the ports have also resulted in significant improvement of cargo movement and safety.

Gujarat’s Strategic Benefits for Global Investors

Gujarat is an ideal state for foreign investment in India with its strategic locations and pro-active government policies. Strong connectivity through rail and road networks adds another layer of strength. Here are some of the benefits that makes this state among the top choices for any foreign investors looking for business opportunities in Gujarat.

Strategic Location: Gujarat has the longest coastline, measuring approximately 1,600 to 2,340 km, and is the westernmost part of India. The coastline runs along the Kathiawar peninsula and is bordered by the Arabian Sea and the Gulf of Cambay. With 49 ports along the coastal region, it is a perfect choice for businesses that are heavily dependent on imports and exports.

Political Stability: Gujarat has a pro-business government policy. The consistency in these policies is because a single party has been governing Gujarat for over 30 years. For any investors, a state with a stable government reduces the risk of uncertainty, providing an ideal long-term investment option.

Superior Infrastructure and Connectivity: With the highest number of operational ports, Gujarat handles around 40% of the total port cargo of India. The state also has two operational international airports and a network of roadways and railways alongside the DIMC and DFC corridors. It ensures reliable domestic connectivity and efficient movement of raw materials and finished products across the nation.

Positive Business Climate Perception: The introduction of Specialised Investment Zones like DSIR and GIFT City promises a boost in the business climate of Gujarat. Events like Vibrant Gujarat Global Summit and the implementation of the Single Window Clearance System to improve Ease of Doing Business ranking have promoted Gujarat as an ideal destination for foreign investors.

Public-Private Relationship: Gujarat Infrastructure Development Board (GIDB) offers a “single window” system with advisory support, transparent bidding, and clear evaluation criteria, which helps de-risk investments for the private sector. The government has been constantly promoting PPPs for large-scale investment projects. With legal and policy frameworks to support the vision for a developing world-class economic hub, Gujarat’s strong PPP makes it an ideal destination for foreign investors.

Ready to Invest?

When global investors look at India, Gujarat is often one of the first names that comes up. The reason is simple, the state delivers. It’s geographical positioning and domestic infrastructure makes it a great option for foreign investment in India. However, the real advantage lies in how efficiently the state works with investors.

The government’s quick approvals, transparent systems, and readiness to solve problems make it easier for companies to set up and grow. Many businesses that start operations in Gujarat choose to expand here because they find the process smooth and predictable. For investors who value both opportunity and stability, Gujarat feels like the right place to build something lasting.