Gujarat's Manufacturing Ambitions Gain Momentum Amid National Auto Sector Shifts
Gujarat eyes bigger role in India's manufacturing with 21% national share by 2030; Maruti Suzuki earns first global carbon credits for Gujarat rail project.
Headlines Monitor Staff 
Ahmedabad, Gujarat, India — February 26, 2026
Gujarat continues to position itself as India's leading manufacturing hub, with officials projecting significant growth in the state's share of national output.
Background
Gujarat has long been a key industrial center in India, benefiting from policies aimed at attracting investments in manufacturing, semiconductors, and automobiles. Recent state initiatives, including budget allocations for infrastructure in areas like Dholera Special Investment Region (SIR), aim to support emerging sectors such as electronics and green logistics. This aligns with broader national trends in the auto industry, where companies are expanding capacity and adopting sustainable practices.
What Happened
Maruti Suzuki's in-plant railway siding in Gujarat has become the world's first modal shift transportation project to earn carbon credits under Verra's Verified Carbon Standard program. The project, registered to reduce approximately 1.7 lakh tonnes of CO2 equivalent emissions over 10 years starting from fiscal 2023-24, shifts freight from road to rail. Separately, Gujarat's deputy chief minister stated that the state's share in national manufacturing is expected to rise to 21% by 2030 from the current 18.5%, with further increases projected to 25% by 2035. The state has also allocated Rs 610 crore for trunk infrastructure in Dholera to support its semiconductor ecosystem.
Why It Matters
These developments boost Gujarat's attractiveness for investors and support India's push toward sustainable industrial growth. In the auto sector, modal shifts reduce emissions and logistics costs, while manufacturing expansion could create jobs and strengthen supply chains. Nationally, the auto industry anticipates moderate 3-6% volume growth in fiscal 2026-27, with two-wheelers and commercial vehicles leading incremental gains.
Official Response
State officials emphasized Gujarat's improved ease of doing business and secure investment environment. Reports indicated commitments to modern industrial areas and incentives for industries.
What Happens Next
Gujarat will host the third edition of the Semiconnect Conference on March 1, 2026, in Gandhinagar, aiming to establish the state as a gateway for semiconductor investments. Ongoing projects in Dholera and rail infrastructure are expected to advance, potentially drawing more global firms.
