Gujarat Manufacturing 2026 guide: Key Industries & Investments

Gujarat has moved decisively from India's traditional manufacturing powerhouse to its most dynamic industrial frontier.

Beyond long-established strengths in chemicals, automotive, and textiles, the state is now anchoring India's semiconductor ambitions at Dholera and Sanand.

Scaling the world's largest renewable energy park at Khavda, and rolling out a new five-year investment policy targeting Rs 10 lakh crore.

This guide covers Gujarat’s key industries, leading companies, industrial hubs and incentives under the Viksit Gujarat Industrial Policy 2026, and a practical step-by-step path for setting up a manufacturing unit in the state.

Key Takeaways:

• Gujarat drives more than 18 percent of India's manufacturing output and has crossed Rs 7 lakh crore in cumulative industrial investment since 2012.
• Automotive, chemicals, and renewable energy remain Gujarat's core growth pillars, led by Sanand, Dahej, and Khavda.
• Dholera's Tata-PSMC fab has crossed the halfway mark, with Sanand emerging as India's chip-packaging hub.
• Tata, Adani, Reliance, and Suzuki anchor Gujarat's industrial base alongside fast-scaling semiconductor players.
• Dholera SIR and new GIDC estates are expanding ready-to-deploy infrastructure for incoming investors.
• The Viksit Gujarat Industrial Policy 2026 offers incentives up to 45 percent, layered with central PLI and ISM support.
• A five-step process - from IFP registration to GPCB clearance - streamlines launching a manufacturing unit in the state.

The State of Gujarat's Manufacturing Sector in 2026

Gujarat remains India's most concentrated manufacturing economy.

The state contributes over 18 percent of India's manufacturing output and around a quarter to a third of national exports while accounting for roughly 5 percent of the population.

Secondary-sector activity made up 42.87 percent of Gujarat's GSDP at current prices in 2025-26, well above the national industrial share.

FDI inflows into the state reached over USD 60 billion by December 2025, and cumulative industrial investment has crossed Rs 7 trillion since 2012.

Chief Minister Bhupendra Patel said Gujarat, already the country's manufacturing and auto hub, is now rapidly emerging as a technology hub as well. He pointed to the NITI Aayog Investment Friendliness Index 2026, noting Gujarat ranked first in the country in attracting foreign investment.

Building on this base, the state government has set a target of Rs 10 lakh crore in fresh investment over the next five years under its new policy framework.

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Industrial Backbone: The Sectors Powering Gujarat's Growth

Automotive and EV Manufacturing Hubs (Sanand & Mandal-Becharaji)

Sanand and Mandal-Becharaji anchor Gujarat's vehicle manufacturing base. Tata Motors runs its passenger-vehicle plant at Sanand, while Suzuki Motor Gujarat - the only India plant wholly owned by Suzuki, operates out of Hansalpur-Becharaji.

Suzuki committed roughly Rs 10,445 crore toward BEV assembly capacity and a dedicated battery plant on adjoining land, alongside its joint venture with Toshiba and Denso for battery-cell manufacturing.

The company president Toshihiro Suzuki said the automaker's future mission is to achieve carbon neutrality with small cars, framing the plant as part of a broader push toward a self-reliant India.

The cluster increasingly functions as an integrated EV supply chain rather than a single-OEM town.

Chemicals, Petrochemicals, and Pharmaceuticals (Dahej & Ankleshwar)

Dahej's PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) remains the backbone of Gujarat's chemicals dominance — the state contributed 46.16 percent of India's total chemical exports in FY26.

Ankleshwar continues to anchor bulk-drug and API manufacturing, benefiting from central PLI support aimed at reducing India's API import dependence.

Renewable Energy & Green Hydrogen (Khavda & Kutch)

Adani Green Energy's Khavda Renewable Energy Park, spread across 538 sq km in Kutch, is being built toward a 30 GW target by 2029 - roughly 26 GW solar and 4 GW wind, backed by an investment of about Rs 1.5 lakh crore.

Operational capacity crossed near 20 GW by mid-2026 through steady tranche commissioning.

At scale, the park is projected to generate 81 billion units of electricity annually - enough to power entire mid-sized nations, and is feeding downstream investment in solar-module and wind-component manufacturing across the state.

The 2026 Frontier: Semiconductor and Electronics Manufacturing

This is where Gujarat's manufacturing story has moved fastest. Deputy Chief Minister Harsh Sanghavi has described Dholera as home to what he called Asia's largest fabrication plant, while noting a parallel assembly, test, marking and packaging ecosystem is taking shape at Sanand.

Tata Electronics, with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), is building India's first front-end fab at Dholera: a 66-hectare, SEZ-notified site designed for 50,000 wafers a month at the 28nm node, using lithography equipment secured through a technology partnership with ASML.

As of mid 2026, the project has crossed the halfway mark - foundations complete, cleanroom installation and equipment calibration underway - with trial production targeted around December 2026.

Tata Sons Chairman N. Chandrasekaran framed the move as continuing Tata Group's tradition of pioneering many sectors in the country, calling semiconductors a critical building block for an AI-led future.

Micron Technology's assembly, test, marking and packaging (ATMP) facility at Sanand became the first operational plant of the current mission cycle when it was inaugurated on February 28, 2026, built on USD 825 million in central incentives.

Kaynes Semicon's OSAT facility at Sanand followed on March 31, 2026.

Together with CG Power's assembly and test operations (with Renesas and STARS Microelectronics, Rs 7,584 crore invested), Sanand has effectively become India's back-end packaging hub while Dholera builds the country's only true wafer fab - assembly and packaging first, frontier fabrication second.

Leading Manufacturing Companies in Gujarat

Mega Industrial Parks and GIDC Estates to Watch

Dholera Special Investment Region (DSIR)

Dholera SIR spans 920 sq km. Its 22.54 sq km Activation Area (TP1/TP2) has trunk infrastructure largely in place, and the zone is officially designated a "Semicon City" under Gujarat's semiconductor policy.

Dholera International Airport is in trial phase, and the Ahmedabad–Dholera Expressway continues cutting travel time between the two cities.

GIFT City (Light Industrial & FinTech Support)

GIFT City is primarily a financial-services and IT/ITeS hub, but it supports Gujarat's industrial base by housing trade-finance, insurance, and fintech infrastructure that manufacturers in Sanand, Dahej, and Dholera draw on for export financing.

Emerging GIDC Ecosystems

In January 2026, the state announced 14 new greenfield GIDC estates to widen industrial land availability beyond traditional corridors, alongside sector-specific estates like the new GIDC Medical Device Park in Rajkot.

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Investment Incentives and Policy Framework

The Viksit Gujarat Industrial Policy 2026 - launched June 15, 2026 in Gandhinagar, effective for five years - succeeds the earlier framework and identifies 21 high-growth thrust sectors, including robotics, drones, and electronics.

Incentives range from 15 percent to 45 percent of eligible investment by sector priority, layered with capital subsidies, interest subsidies, and power-tariff exemptions.

These stack with central PLI schemes and the India Semiconductor Mission's support of up to 50 percent of project cost for fabs and ATMP/OSAT units.

Step-by-Step: How to Set Up a Manufacturing Unit in Gujarat

1. Register on the Investor Facilitation Portal (IFP) and apply through Gujarat's Single Window Clearance system.
2. Apply for a GIDC plot through the relevant estate, specifying land-use category and utility needs upfront.
3. Secure environmental clearance from the Gujarat Pollution Control Board (GPCB) before construction.
4. Apply for sector-specific incentives under the Industrial Policy 2026, plus central PLI/ISM schemes where applicable.
5. Complete utility connections and compliance registrations before commissioning.

For live plot availability and applications, the official channels are the Investor Facilitation Portal and the GIDC website.