Gujarat has become India’s second-largest state in terms of the number of factories, marking a major leap in its industrial growth.
As per data from the Ministry of Statistics and Programme Implementation (MoSPI), Gujarat had 33,311 registered factories in 2023–24, up from 21,282 in 2010–11, a rise of nearly 56% in 13 years. Tamil Nadu tops the list with 40,121 factories, while Maharashtra ranks third with 26,539 units.
Experts attribute Gujarat’s growth to stable policies, reliable power supply, efficient logistics, and the expansion of MSME-driven industrial clusters. Major manufacturing hubs include Ahmedabad, Sanand, Surat, Vadodara, Bharuch, Jamnagar, Naroda, Vatva, Narol, Changodar-Moraiya, Bavla, Chhatral, and Kalol.
The industrial rise is reflected in Gujarat’s GST revenue, which has nearly tripled from ₹45,905 crore in 2017–18 (the first year of GST implementation) to ₹1,25,168 crore in 2023–24, indicating strong compliance and formalisation.
A senior GST consultant noted that the surge highlights improved tax discipline. “GST has pushed businesses towards transparency. The rise in revenue shows better compliance across industries,” he said.
However, challenges remain for MSMEs, which still struggle with filing requirements, documentation, and refund delays, he added.
Officials said Gujarat is entering its next phase of industrial expansion, focusing on semiconductor and electronics parks, plug-and-play zones, and enhanced logistics infrastructure. The port-led growth and auto-engineering ecosystem in Sanand are expected to drive future industrial capacity, strengthening Gujarat’s position as one of India’s leading manufacturing hubs.