Gujarat has once again reinforced its reputation as one of India’s most entrepreneurial states. A recent report by the Ministry of Statistics and Programme Implementation (MoSPI) on Labour Market Dynamics in million-plus cities shows that people in Gujarat’s major cities are more likely to start their own businesses than depend on salaried jobs. Rajkot, Surat and Ahmedabad have emerged among the country’s top cities for self-employment, reflecting the state’s strong business culture, thriving MSME sector and growing startup ecosystem.
Rajkot Tops Gujarat in Self-Employment
Rajkot recorded the highest percentage of self-employed people among Gujarat’s four major cities, with 50.4% of respondents identifying themselves as self-employed. It was followed by Surat (42.4%) and Ahmedabad (41.4%). All three cities performed better than the national average of 35.1% across 46 Indian cities with populations above 10 lakh and also exceeded the urban India average of 40.4%. The findings underline Gujarat’s long-standing entrepreneurial culture, where many people choose to build businesses instead of seeking traditional salaried employment.
How Gujarat Compares with Other Major Cities
The report shows that Gujarat’s leading cities outperformed several major metropolitan areas in terms of self-employment. Kolkata recorded 39.6%, Delhi 37.9%, Greater Mumbai 32.8%, and Chennai 24.1%. However, a few cities ranked even higher than Rajkot, including Gwalior (64.7%), Varanasi (64.2%), Prayagraj (55.9%), and Jodhpur (55.4%), indicating that entrepreneurial activity is also strong in parts of central and northern India.
Business Culture Runs Deep in Gujarat
FICCI Gujarat Chairman Gokul Jaykrishna said entrepreneurship has been a part of Gujarat’s social fabric for generations. According to him, young people in cities like Ahmedabad, Surat and Rajkot grow up watching family businesses succeed, inspiring many of them to become entrepreneurs rather than pursue salaried jobs. This culture of risk-taking has played a major role in strengthening the state’s MSME ecosystem and supporting long-term economic growth.
Strong Presence of Proprietorship and Partnership Firms
The MoSPI report surveyed nearly 60,000 people across India, including more than 8,000 respondents from Gujarat’s four major cities. It found that proprietorship and partnership firms remain the biggest employers in Gujarat’s urban centres. Surat led with 83.2% of respondents working in such enterprises, followed by Rajkot at 78.3%. Surat ranked fifth among the 46 surveyed cities, behind Agra, Varanasi, Prayagraj and Ludhiana. The report also noted that Surat and Rajkot employed more people in proprietorship and partnership firms than 36 other Indian cities included in the study.
MSME Sector Driving Job Creation
ICC Gujarat Chairman Pathik Patwari said Gujarat’s entrepreneurial mindset continues to shape its labour market. He believes the state’s startup-friendly policies and business environment have encouraged the rapid growth of proprietorship and partnership firms. According to him, Gujarat’s strong MSME sector remains one of the biggest contributors to employment generation and continues to fuel economic development across the state.
Manufacturing Remains the Biggest Employer
Manufacturing emerged as the largest employment sector across Gujarat’s major cities, accounting for 51% of jobs in Surat, 42.5% in Rajkot, and 31% in Ahmedabad. Wholesale and retail trade was the second-largest employer, contributing 20% of employment in Surat, 16% in Ahmedabad, and 15% in Rajkot. Together, manufacturing and trade generated between 47% and 71% of employment across these three cities, highlighting the importance of industrial growth and commercial activity in Gujarat’s economy.
The MoSPI report highlights Gujarat’s long-standing entrepreneurial culture and its ability to generate employment through small businesses, family enterprises and MSMEs. With Rajkot, Surat and Ahmedabad recording self-employment levels well above the national average, the state continues to strengthen its position as one of India’s leading business hubs. Backed by a robust manufacturing sector, a thriving MSME ecosystem and supportive startup policies, Gujarat remains a strong example of entrepreneurship-driven economic growth.
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