As global supply chains are recalibrated and UK companies seek resilient, scalable manufacturing destinations, one Indian state consistently emerges as a front-runner: Gujarat.
Manufacturing in Gujarat for UK companies is increasingly viewed not just as a cost advantage, but as a strategic lever for supply chain resilience, export competitiveness, and long-term Asian market expansion. Contributing nearly 8% of India’s GDP and over 18% of India’s industrial output, Gujarat has built a reputation as India’s most execution-ready manufacturing ecosystem.
For UK boardrooms seeking operational certainty and scalable growth, Gujarat offers something rare: policy stability, infrastructure depth, and sector concentration – all in one geography.
If India is the growth strategy, Gujarat is the operational blueprint.
An Industrial Economy Built for Scale
- Gujarat Manufacturing Ecosystem-
Gujarat’s manufacturing strength is supported by a dense ecosystem of large enterprises and thousands of MSMEs that enable faster localisation and reduced import dependency.
- MSME Contribution to Competitiveness–
India’s MSME sector contributes approximately 30% to GDP and around 45% to exports, underscoring the importance of supplier depth for manufacturing competitiveness.
- Sector-Specific Industrial Clusters-
The state’s sector-specific industrial clusters allow UK companies to integrate into existing value chains rather than building supply networks from the ground up.
Infrastructure as a Competitive Differentiator
- Mundra Port, India’s largest commercial port, along with Kandla Port and other maritime gateways, provides direct connectivity to Europe, the Middle East, and Africa – reinforcing Gujarat’s export-first orientation.
- The Delhi–Mumbai Industrial Corridor strengthens logistics efficiency and integrates Gujarat’s industrial zones with major consumption markets and industrial centres across western and northern India.
- Dedicated freight corridors reduce transit time and logistics costs, improving export competitiveness.
- Reliable power supply and developed industrial estates support uninterrupted production for advanced manufacturing facilities.
Key Manufacturing Sectors Driving Gujarat’s Industrial Strength
Rather than relying on one dominant industry, Gujarat’s advantage lies in diversified sectoral leadership. This multi-sector depth reduces risk and creates cross-industry synergies for incoming UK firms.
- Chemicals and Petrochemicals: India’s Manufacturing Core
Gujarat’s chemical industry accounts for 62% of India’s petrochemical production and 53% of overall chemical output, firmly positioning the state as India’s chemical capital. Key industrial concentrations in Vadodara, Ankleshwar, Dahej, Jamnagar, and Hazira anchor this dominance.
Key sub-sectors include:
- Petrochemicals and polymers
- Specialty chemicals
- Agrochemicals
- Dyes and intermediates
- Advanced materials
Integrated chemical zones offer proximity to feedstock, downstream processors, port connectivity, and export infrastructure. For UK specialty chemical firms, this means faster value-chain integration and reduced logistical complexity.
- Pharmaceuticals and Life Sciences: Global Regulatory Alignment
Gujarat contributes roughly one-third of India’s pharmaceutical output and plays a major role in global generic exports. The state has built manufacturing clusters that align with international compliance standards.
Key sub-sectors include:
- Active Pharmaceutical Ingredients (APIs)
- Formulation manufacturing
- Contract manufacturing (CDMO)
- Biotechnology
- Medical devices
Clusters in Ahmedabad, Vadodara, and Ankleshwar host WHO-GMP compliant facilities serving regulated markets. For UK life sciences firms, this reduces regulatory friction and shortens commercialisation timelines.
Gujarat’s strong renewable capacity and stable power infrastructure ensure reliable, increasingly green energy access enhancing cost efficiency while supporting ESG and net-zero commitments.
- Automotive and Engineering: Export-Driven Capability
India’s rising automotive exports reflect its integration into global production networks and Gujarat has positioned itself at the centre of this growth.
Key sub-sectors include:
- Passenger vehicle manufacturing
- Commercial vehicles
- Auto components (Tier 1 & Tier 2 suppliers)
- Precision engineering
- Heavy machinery and fabrication
Automotive production is concentrated in Sanand and Halol, where major OEM plants and dense Tier 1 and Tier 2 supplier ecosystems enable rapid integration into established production networks.
Rajkot and Ahmedabad strengthen this base with advanced auto component and precision engineering capabilities, specialising in castings, machining, fabrication, and industrial components for domestic and export markets.
Beyond vehicles, Gujarat’s industrial capacity extends into heavy machinery, capital equipment, and metal fabrication- sectors aligned with UK industrial strengths and cross-border collaboration.
- Renewable Energy and Green Hydrogen Leadership
Manufacturing competitiveness today is no longer measured solely by cost and capacity. Energy sourcing and ESG alignment are increasingly board-level concerns.
Gujarat has emerged as one of India’s leading renewable energy states and is actively investing in green hydrogen infrastructure.
Key sub-sectors include:
- Solar module manufacturing Solar module manufacturing
- Wind turbine components
- Renewable power generation concentrated in Kutch and Mundra
- Green hydrogen production anchored in Jamnagar and Dahej
- Clean energy storage systems
For UK clean-tech firms and manufacturers under net-zero mandates, Gujarat offers the opportunity to align industrial expansion with sustainability commitments without compromising scale.
Digital and Advanced Manufacturing Readiness
- Manufacturers in Gujarat are increasingly adopting automation, IoT-enabled systems, AI-driven quality control, and digital supply chain platforms to enhance efficiency and competitiveness.
- UK firms investing in advanced manufacturing technologies can leverage Gujarat’s evolving digital industrial ecosystem to scale with precision and global standards.
Policy Framework and Investment Incentives
- India permits 100% foreign direct investment under the automatic route in most manufacturing sectors, simplifying market entry for UK investors.
- India’s Production Linked Incentive (PLI) schemes provide performance-based financial incentives tied to incremental production and localisation in sectors such as electronics, pharmaceuticals, automotive, and renewables improving cost competitiveness and de-risking scale for incoming manufacturers.
- Gujarat enhances national policy through capital investment subsidies, interest support, stamp duty exemptions, electricity duty exemptions, and R&D assistance.
- Single-window clearance mechanisms streamline regulatory approvals and reduce execution delays.
Access to India’s Expanding Consumer Base
- India’s middle class is projected to become one of the largest globally over the next decade, creating significant domestic demand growth.
- Manufacturing in Gujarat allows UK companies to serve both export markets and India’s fast-growing domestic economy from a single operational base.
- This dual-market strategy enhances revenue diversification while mitigating geopolitical supply chain risks.
Strategic Implications for UK Boardrooms
- Gujarat combines industrial maturity, export readiness, supplier ecosystem depth, infrastructure strength, and policy clarity within one state-level jurisdiction.
- UK companies seeking supply chain diversification, cost optimisation, scalable Asian market entry, and ESG-aligned industrial growth should evaluate Gujarat as a primary manufacturing gateway into India.
- In the context of global supply chain realignment, Gujarat offers execution certainty rather than exploratory opportunity.
Turning Strategy into Execution
Technovedge supports UK companies with industrial site selection, policy navigation, joint venture structuring, phased localisation strategy development, and long-term operational scaling in India.
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