Gujarat’s industrial growth is increasingly being shaped by regions that combine scale with competitiveness, and South Gujarat stands out as a prime example. With strong MSME clusters, export-driven industries, and integrated infrastructure, the region is transitioning towards value-added and future-ready sectors. Shri P Swaroop, IAS, Industries Commissioner, Government of Gujarat, in conversation with Hemangini Kanth Rajput, shares how this transformation is unfolding.
Question 1. South Gujarat, especially Surat, contributes significantly to textiles, chemicals, and exports. How do you see these regions driving Gujarat’s next growth phase under the Vibrant Gujarat roadmap?
With its unique blend of natural richness and industrial advancement, South Gujarat reflects a model of balanced and inclusive growth. The region’s thriving textiles and apparel industry, globally renowned gems and jewellery clusters, and expanding pharmaceutical and chemical sectors highlight its strong entrepreneurial base. By aligning traditional strengths with emerging opportunities, South Gujarat is building a dynamic socio-economic ecosystem focused on sustainability, innovation, and skill-driven development.
South Gujarat will be central to Gujarat’s next phase of export-led and technology-driven growth under the Vibrant Gujarat roadmap. Surat already plays a pivotal role as a global hub for textiles, gems and jewellery, and chemicals, while clusters such as Bharuch and Ankleshwar anchor the state’s chemicals and pharmaceuticals backbone. Together, South Gujarat contributes nearly 29% of Gujarat’s manufacturing output, making it one of the most industrially intensive regions in India.
The manufacturing sector alone accounts for nearly 55% of the region’s GDP and 43% of its employment, underlining its critical role in economic growth and job creation.
Looking ahead, South Gujarat is evolving from volume-based manufacturing to value-added, future-ready sectors such as specialty and green chemicals, technical textiles, lab-grown diamonds, APIs and bulk drugs, advanced engineering, and clean energy solutions. Strong port-led connectivity through Hazira and Dahej, integration with DMIC and the Dedicated Freight Corridor, and a dense GIDC ecosystem provide the region with a decisive logistics advantage.
Question 2. VGRC South Gujarat focuses on sectors such as textiles, chemicals, and emerging industries. Which of these are likely to attract the highest investment and generate large-scale employment in the near term?
In the near term, chemicals and petrochemicals, textiles, and MSME-led manufacturing are expected to attract the highest capital inflows, while textiles, apparel, food processing, and MSMEs will continue to be the largest generators of employment.
The chemical sector, particularly speciality and green chemicals, is witnessing a strong global demand realignment toward India. Bharuch, Ankleshwar, and Dahej together form the backbone of Gujarat’s chemical industry, supported by integrated feedstock availability, port access, and downstream clusters. This will drive capital-intensive investments with high export potential.
Textiles, particularly technical textiles, man-made fibre products, and sustainable fabric manufacturing, will continue to generate large-scale employment as Surat transitions from traditional segments to higher-value applications.
Emerging sectors such as battery energy storage, green hydrogen, and deep-tech startups will anchor the next wave of high-skill job creation and advanced manufacturing investments.
Question 3. With strong MSME clusters in Surat and Bharuch, how are policies like cluster development, export promotion, and PLI schemes helping local industries scale and compete globally?
The Micro, Small and Medium Enterprises (MSME) sector is a cornerstone of Gujarat’s industrial and economic framework, contributing significantly to growth, employment generation, exports, and balanced regional development. At the national level, MSMEs account for nearly one-third of India’s GDP and around 45% of manufacturing output, with Gujarat emerging as a leading example of a diversified, export-oriented, and innovation-driven ecosystem.
Gujarat hosts approximately 30 lakh MSMEs registered on the UDYAM portal, ranking fifth in India. The state contributes around 30% to India’s total exports in FY 2024–25, with MSMEs playing a crucial role in sectors such as chemicals, petrochemicals, diamonds, textiles, and agro-processing.
MSMEs form the backbone of South Gujarat’s industrial economy, and policy frameworks are designed to help them evolve from local champions to global suppliers. Cluster development initiatives provide shared infrastructure, testing facilities, logistics support, and technology upgradation, enabling MSMEs to reduce costs and improve quality.
Export promotion initiatives, including market access facilitation, compliance support, and global buyer integration, are helping MSMEs expand into international markets such as the US, Europe, Japan, Brazil, and the Middle East.
Additionally, schemes like the World Bank-supported RAMP Programme and Production Linked Incentive (PLI) schemes encourage scale, formalisation, and technology adoption. Combined with ease-of-doing-business reforms and single-window systems, these measures enable MSMEs to compete globally on cost, quality, and consistency.
Question 4. With strategic assets like DMIC, Dahej PCPIR, and expanding GIDC estates, how is infrastructure development being leveraged to accelerate industrial growth in this region?
Infrastructure in South Gujarat is being leveraged as a growth multiplier rather than just a support system. The region benefits from a rare convergence of port-led industrialisation, national freight corridors, and planned industrial zones. DMIC and the Dedicated Freight Corridor enable faster movement of raw materials and finished goods, while Dahej PCPIR supports large-scale chemical and petrochemical investments with integrated infrastructure and utilities.
More than 40 GIDC estates across the region are being expanded and modernised, offering transparent land allotment, plug-and-play facilities, and reliable access to power, gas, and water. Proximity to Hazira and Dahej ports further strengthens export competitiveness and supports heavy and bulk industries.
The proposed Surat–Dankuni Dedicated Freight Corridor, announced in the Union Budget 2026–27, will serve as a strategic east–west rail link connecting Gujarat to West Bengal. This high-capacity corridor will significantly reduce logistics costs, accelerate cargo movement, and strengthen connectivity between eastern mineral hubs and western ports.
Overall, this integrated infrastructure approach reduces logistics costs, shortens project timelines, and enables industries, especially MSMEs, to scale operations efficiently and competitively.