Gujarat continues to lead India’s industrial growth story, backed by strong policies, robust infrastructure, and a dynamic manufacturing ecosystem. South Gujarat, in particular, has emerged as a key investment hub. Shri K C Sampat, IAS, Managing Director, Industrial Extension Bureau (iNDEXTb), Government of Gujarat, in conversation with Hemangini Kanth Rajput of Elets Technomedia, shares insights on the region’s growth outlook and investment potential.
Question 1. VGRC South Gujarat is highlighting sectors like chemicals, textiles, and emerging industries. Based on investor trends, which sectors are expected to see the highest investment and job growth in the coming years?
South Gujarat, which includes districts such as Bharuch, Dang, Navsari, Surat, Tapi, and Valsad, is one of Gujarat’s key industrial and export-driven regions, contributing around 29% to the state’s manufacturing output.
The region has strong advantages, including a large number of GIDC estates, a robust MSME base, strong logistics, and a skilled workforce. Going forward, sectors such as advanced manufacturing, specialty and green chemicals, textiles, pharmaceuticals (APIs and bulk drugs), lab-grown diamonds, food processing, renewable energy (including green hydrogen and green ammonia), logistics, startups, and eco-tourism are expected to witness strong investment and job creation.
Question 2. Beyond Surat, districts like Bharuch and Navsari are growing as major industrial hubs. What factors are attracting investors to these locations?
South Gujarat has evolved into a strong, industrial and export-driven region with a well-balanced mix of sectors. While Surat is globally known for its gems, jewellery, and textiles, clusters such as Bharuch, Navsari, and Tapi have emerged as key hubs for chemicals and petrochemicals, with a growing presence in pharmaceuticals and food processing.
One of the biggest advantages of the region is its strong infrastructure and connectivity. South Gujarat is well connected through major national highways and is part of the Delhi–Mumbai Industrial Corridor (DMIC) and the Dedicated Freight Corridor (DFC). Easy access to ports such as Hazira and Dahej further strengthens its position as a major export gateway.
Additionally, the presence of a strong MSME ecosystem and the availability of skilled manpower make it easier for industries to set up and scale operations. Access to raw materials, established supply chains, and proximity to key markets further enhance its attractiveness.
All these factors, along with supportive policies and ease of doing business, are consistently driving investor interest and industrial growth across South Gujarat.
Question 3. With policies like the Gujarat Industrial Policy, GIDC expansion, and ease of doing business reforms, how is the state making South Gujarat more attractive for investors?
Ease of doing business is a key focus for the state. Through iNDEXTb, investors can access a single-window system where most approvals and clearances are handled efficiently in one place. Many processes are now digitised, making applications, tracking, and approvals faster and more transparent, with time-bound clearances in place.
In South Gujarat, strong infrastructure through industrial estates and well-developed connectivity further supports investors. The land allotment process has also been simplified and made more transparent, enabling faster project setup.
Special support is extended to MSMEs, including quicker approvals and reduced compliance requirements. Moreover, the government continues to support industries even after project implementation, helping resolve issues and ensure smooth operations.
Overall, a combination of policy support, ease of doing business, and strong infrastructure is making South Gujarat a preferred investment destination.
Question 4. As industries move towards sustainability and advanced manufacturing, how is Gujarat promoting green technologies, ESG practices, and future-ready sectors in South Gujarat?
Sustainability is now a core part of Gujarat’s industrial growth strategy. The state is actively promoting green technologies, cleaner production methods, and environmentally responsible practices across industries. New projects are encouraged to adopt energy-efficient systems, waste management solutions, and water recycling, especially important for industrial regions.
In South Gujarat, districts like Surat, Bharuch, and Valsad are witnessing strong adoption of renewable energy solutions such as solar rooftops, waste-to-energy plants, and energy-efficient industrial infrastructure. Surat, in particular, is advancing through smart city initiatives and green building practices to reduce emissions and promote sustainable urban-industrial development.
The region is also seeing a shift towards green manufacturing, including energy-efficient textile production and low-carbon chemical processes. Its proximity to major ports further opens opportunities in green hydrogen, sustainable logistics, and eco-friendly exports.
At the same time, the focus remains on inclusive growth. Efforts are being made to generate local employment by aligning skill development with industry needs. MSMEs are being encouraged as they play a vital role in job creation and local economic development. Industries are also guided to contribute to community development through responsible practices, ensuring that growth benefits the local population.
Overall, South Gujarat is steadily positioning itself as a hub for sustainable, future-ready industrial development, balancing economic growth with environmental responsibility and social inclusion.
Question 5. What key outcomes do you expect from VGRC South Gujarat, such as MoUs, investment proposals, or partnerships, and how will these support the region’s growth?
From VGRC South Gujarat, we expect strong outcomes in terms of MoUs, concrete investment proposals, and long-term partnerships that will directly contribute to regional growth.
We anticipate investment interest across key sectors such as chemicals, pharmaceuticals, textiles, logistics, renewable energy, food processing, and MSMEs. These MoUs will serve as a pipeline for project implementation, leading to new industrial units, expansion of existing capacities, and stronger value chains in districts like Surat, Bharuch, Navsari, and Valsad.
The VGRC platform also provides investors with better visibility on land availability, infrastructure, incentives, and approvals. This helps reduce risks and accelerates decision-making, leading to faster project execution, increased job creation, and greater participation from local MSMEs.
Additionally, we expect meaningful partnerships between industry, academia, and startups, supporting innovation, skill development, technology adoption, and sustainable manufacturing practices.
Overall, VGRC South Gujarat is not just about announcements—it is about converting investment intent into real projects, strengthening the region’s industrial base, and driving long-term economic growth.