Despite constituting only about 5% of India’s population, Gujarat has emerged as a powerhouse in business and finance. Prominent business tycoons like Mukesh Ambani (Reliance Industries), Gautam Adani (Adani Group), and Azim Premji (Nasscom), along with many other successful entrepreneurs, hail from the state. So, what makes Gujarat the business and financial hub it is today?
Business over Jobs
Gujaratis traditionally gravitate toward business and entrepreneurship rather than pursuing government jobs, and this tendency is deeply rooted in the culture of the state. Gujaratis have a long history of being involved in trade, commerce, and entrepreneurship.
“ If you dont build your dreams, someone else will hire you to help them build their dreams.” – Dhirubhai Ambani
Close Community Network
Gujaratis are known for having a closely-knit, supportive community, which plays a crucial role in their success in business. This strong sense of community not only fosters trust but also provides valuable resources like Guidance and Mentorship, Strong Networking and Business Alliances, Access to Capital and Financial Support, Shared Business Resources and Opportunities.
Early Exposure to Business Practices
From a young age, Gujarati children are introduced to the world of business. Whether it’s through observing family members running a shop, a factory, or other enterprises, business becomes a natural part of their environment; t’s deeply embedded in their culture and daily lives.
This exposure allows them to learn business concepts not just theoretically but through real-world examples, making them more confident and knowledgeable as they grow older.
Jainism
While not all Gujaratis are Jain, the principles of Jainism have had a great influence n the culture and values of the Gujarati community, especially in terms of ethics, business practices, and financial acumen. One of the core principles of Jainism is Ahimsa (non-violence) and Satya (truthfulness). Jain entrepreneurs are known for conducting their businesses with a strong sense of ethics and integrity.
Risk-taking and innovation
Risk-taking and innovation are two key traits that have contributed significantly to the success of Gujaratis in the business world. Gujaratis are known for taking risks, but these risks are typically well thought out and calculated. They are not reckless, but they are willing to step out of their comfort zones when they see opportunities. Whether it’s entering new markets, diversifying into different industries, or investing in new technologies, Gujarati entrepreneurs are often ready to take on challenges
Gujaratis In The West
Gujaratis own approximately 42% of all hotels and motels in the United States, which translates to around 21,000 out of 53,000 properties. This ownership represents a combined value of about $40 billion.
The rise of Gujaratis in the hospitality sector began in the mid-20th century. The first Gujarati hotelier, Kanji Manchhu Desai, opened a hotel in California in 1942. His success inspired many others from Gujarat to enter the industry, this led to “Potel phenomenon” – a term that highlights the prevalence of Gujarati-owned motels across America.
This business have proved to be heavily beneficiary to the US economy as The Asian American Hotel Owners Association (AAHOA), which has a membership primarily consisting of Gujarati hoteliers reports. They generate over $368 billion to the GDP and create more than 1.1 million jobs.
Experts even predict that within the next decade, Gujaratis could own up to staggering 75% of all motels in the U.S. !
Gujrat’s Geographical Location
Gujarat’s geographical location leverages its strategic advantages to foster trade, industry, and agriculture. Here’s how –
1. Strategic Coastal Location
- Extensive Coastline: With over 1,600 kilometers of coastline along the Arabian Sea, Gujarat has access to some of India’s busiest ports, such as Kandla and Mundra. n the fiscal year 2023, Mundra Port, operated by Adani Ports and Special Economic Zone (APSEZ), handled approximately 155 million metric tons (MMT) of cargo, making it India’s largest seaport. In the same period, Kandla Port, officially known as Deendayal Port, managed a cargo volume of around 137 MMT, ranking among the top major ports in the country
2. Proximity to Major Markets
- International Trade: Gujarat’s closeness to the Middle East and Africa allows it to engage in lucrative trade relationships.
3. Industrial Development
- Industrial Hubs: Key cities like Ahmedabad, Surat, and Vadodara have developed into industrial centers due to their strategic locations. The Gujarat Industrial Development Corporation (GIDC) supports infrastructure development, attracting investments across sectors like textiles, pharmaceuticals, and automotive manufacturing.
4. Urbanization and Economic Growth
Emerging Urban Centers: Cities like Gandhinagar are becoming important urban centers with a growing service sector, including IT and finance. The establishment of the Gujarat International Finance Tec-City (GIFT City) exemplifies this trend.
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