Biology of Business

Ahmedabad

TL;DR

From Gandhi's Salt March to GIFT City fintech hub, Ahmedabad's 8-million-person economy pivoted from cotton mills to pharma and diamonds without breaking.

City in Gujarat

By Alex Denne

Ahmed Shah I founded the city in 1411 on the banks of the Sabarmati River, but Ahmedabad's defining founder effect came five centuries later when Mahatma Gandhi established the Sabarmati Ashram here in 1917 and launched the Indian independence movement from its grounds. The 1930 Salt March began at the ashram's gates—a costly signal that resonated across the British Empire and transformed a textile manufacturing city into the spiritual headquarters of non-violent resistance.

Ahmedabad's textile mills earned it the title 'Manchester of the East' by the early twentieth century, with over 80 mills employing hundreds of thousands of workers. When the mills declined in the 1980s and 1990s, the city did not collapse. Instead, it demonstrated phenotypic plasticity: pharmaceuticals, chemicals, and diamond polishing absorbed displaced labour, and the city pivoted from cotton to a diversified manufacturing base. Ahmedabad's metro population now exceeds eight million, making it India's fifth-largest city.

The Sabarmati Riverfront Development transformed a neglected, sewage-filled riverbank into a 11.5-kilometre promenade with parks, markets, and public spaces—niche construction that physically remade the city's relationship with its founding geography. The city's old walled quarter, with its intricately carved wooden havelis and pols (gated neighbourhood clusters), holds UNESCO World Heritage status as India's first such designated city.

Ahmedabad functions as Gujarat's commercial nervous system. The Gujarat International Finance Tec-City (GIFT City), India's first operational smart city and international financial services centre, operates from a 886-acre site on the city's outskirts. Reliance, Adani, and Torrent—three of India's largest conglomerates—trace their roots to Ahmedabad or Gujarat. The city's entrepreneurial culture runs so deep that Gujaratis are disproportionately represented among Indian business founders globally, a cultural transmission pattern that echoes through Silicon Valley, East Africa, and the UK.

Key Facts

6.4M
Population

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