The industrial ecosystem in Gujarat, one of India’s high-growth states, is supported by a diverse manufacturing base, entrepreneurial culture, and growing adoption of technology. However, rising production costs, geopolitical uncertainty, limited access to markets, and compliance challenges are putting pressure on both large industries and micro, small, and medium enterprises (MSMEs) in the state, industry stakeholders said.
While large industries are facing higher input and logistics costs, MSMEs in the state are particularly at risk because of their limited financial and human resources. According to the government data, as of July 2026, Gujarat has more than 33.16 lakh operational MSMEs, which contribute around 37% to state’s GSDP and employ more than 1 crore people.
