Economy

Ahmedabad is the largest inland industrial centre in western India, and has historically enjoyed a reputation as an important base of commerce, trade and industry. Under Muzaffarid rule, the city was a major trade destination for western India, because of its proximity to the port at Surat and for its access to the hinterland of Gujarat. In the 19th century, the textile and garments industry developed and thrived in the city — on 30 May 1861 Ranchhodlal Chhotalal founded the first Indian textile mill, the Ahmedabad Spinning and Weaving Company Limited. This was followed by the establishment of a series of textile mills such as the Calico Mills in 1880 by Maganbhai, and mills founded by industrialists such as Ambalal Sarabhai and Kasturbhai Lalbhai. Arvind Mills, located in Ahmedabad, is one of the largest textile mills in the country.

Ahmedabad has a thriving chemicals and pharmaceuticals industry. Two of the biggest pharmaceutical companies of India — Zydus Cadila and Torrent Pharmaceuticals — are based in the city. The city serves as the corporate headquarters of the Adani Group, which is a leading multinational trading company. The Nirma group of industries, which runs a large number of detergent and chemical industrial units, has its corporate headquarters in the city. In recent year many foreign companies have set up their sales offices and production facilities in Ahmedabad. Amongst them are Bosch Rexroth, Germany (hydraulic components); Stork, Netherlands (textile machinery; joint venture with ATE, India's leading textile equipment trading house); Rollepaal, Netherlands (pipe extrusion equipment); and Johnson Pumps, Sweden.

The completion and operation of the Sardar Sarovar Project of dams and canals has improved the supply of potable water and electricity for the city. In recent years, the Gujarat government has increased investment in the modernisation of the city's infrastructure, providing for the construction of larger roads and improvements to water supply, electricity and communications. The information technology industry has developed significantly in Ahmedabad. A NASSCOM survey in 2002 on the "Super Nine Indian Destinations" for IT-enabled services ranked Ahmedabad fifth among the top nine most competitive cities in the country.

A diverse labour force of migrant workers from different parts of Gujarat and neighbouring states is integral to the economy of the city. These workers provide vital household labour and services for the city's large middle class. Ahmedabad plays a strong and significant role in providing commercial resources and market access for the economies of neighbouring cities. A majority of the working-age citizens of Ahmedabad are traders and business people. This has led to the creation of major mercantile corporations and artisan guilds that are a key influence on the economic life of Gujarat. The city's educational and industrial institutions have attracted students and young skilled workers from the rest of India.