It is the third largest industrial region of the country which lies in close proximity to the cotton growing tracts of the Gujarat plains. Here industri­alisation begain with the dispersal of cotton textile industry from Mumbai after the loss of the Chinese market so as to make it closer to the source of raw material and the market.

The availability of cheap land, cheap skilled labour, port facility, transport net work and the completion of the power projects (such as, Dhuvaran thermal power station, Uttaran gas power station, Ukai hydro-electric project and Kakrapara nuclear power plant) are some of the advantages favouring the growth of industries in this region.

The discovery and production of petroleum in the Gulf of Cambay area, the establishment of an industrial complex of petrochemical industries around Ankleshwar (near Vadodara), and the new port at Kandla had boosting effect over the industrial devel­opment in the region.

Today there are about 9,900 registered facto­ries in the region engaging a daily work force of about 6 lakh persons. This is about 8 per cent of the total registered factories and 9 per cent of the total industrial workers of the country. Ahmadabad is the largest industrial centre of the region housing more than 25 per cent of the large industrial units.

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It is the second largest centre of cotton textile industry in the country. Chemical, engineering and pharmaceutical are other important industries of the city. Surat is the second largest industrial center famous for silk tex­tile, and diamond cutting.

It houses 16 per cent of the large industrial units engaging about 10 per cent of the total work-force of the region. Kaira and Vadodara occupy the third and fourth ranks respectively. Vadodara is an important centre of woolen textile industry.

Other important industrial centers of the region include Kalol, Nadiad, Bharuch, Navsari, Ankaleshwar, Anand, Khera, Bhavnagar, Surendranagar, Jamnagar, Rajkot and Koyali. Be­sides textile, chemical, petro-chemical, engineer­ing, rayon, match, pharmaceuticals, petroleum re­fining, leather, plastic, potteries and glassware are other important industries of the region.

The region is experiencing the shortage of industrial power and water. But the large open spaces and low municipal taxes are still attraction for entre­preneur to install their new industrial units in this region.’