Biology of Business

Gujarat

TL;DR

World's diamond cutting capital built on 5,000 years of Indus Valley trading heritage

State/Province in India

By Alex Denne

Gujarat's 1,600-kilometer coastline—the longest of any Indian state—has shaped its identity as a gateway between the subcontinent and the world for over four millennia. Where the Arabian Sea meets the Gulf of Khambhat, ancient merchants established trade networks that would define the region's commercial DNA long before modern port infrastructure existed.

The archaeological site at Lothal stands as evidence of Gujarat's precocious maritime sophistication. This Indus Valley Civilization port, operational around 2400 BCE, featured the world's earliest known dock—a brick structure engineered to accommodate tidal variations. Merchants here traded beads, textiles, and semi-precious stones with Mesopotamia, establishing patterns of international commerce that persist in modified form today. The Harappan tradition of craft specialization and trade orientation became embedded in Gujarati culture, surviving successive waves of rulers and religious transformations.

British colonial administration consolidated Gujarat's fragmented princely states while extracting wealth through imposed trade monopolies. Yet this period also produced the figure most associated with Indian independence: Mohandas Gandhi, born in Porbandar in 1869. His 1930 Salt March from Sabarmati Ashram to Dandi—a 385-kilometer walk to protest British salt taxes—demonstrated how Gujarat's coastline could serve revolutionary as well as commercial purposes.

Post-independence Gujarat bifurcated from Maharashtra in 1960 and pursued aggressive industrialization. Reliance Industries established its petrochemical complex at Jamnagar, now the world's largest refinery. Adani Group built Mundra Port into India's largest private port. Tata Motors relocated its Nano plant to Sanand. This corporate concentration accelerated after 2001, when the Vibrant Gujarat investment summits attracted billions in foreign capital. The 2002 communal riots, which killed over a thousand people, remain a contested chapter that continues to influence state politics.

Surat exemplifies Gujarat's manufacturing prowess: the city processes roughly 90 percent of the world's diamonds, employing hundreds of thousands in cutting and polishing operations. This single industry generates annual revenues exceeding $20 billion.

By 2026, Gujarat functions as India's manufacturing corridor and energy hub, contributing disproportionately to national exports while managing tensions between rapid industrialization and environmental constraints along its heavily developed coastline.

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