Gujarat includes major sites of the Indus Valley Civilization, such as Lothal and Dholavira. Its coastal cities, mainly Bharuch and Khambhat is said to have served as ports and trading centres in the Maurya and Gupta empires. Tracing the history of Gujarat, it becomes clear that the state played an important role in the economic development of India right from ancient times. Today also it is one of the most industrialized states of India, and has a per capita GDP above the national average.

After independence Gujarat was grouped into three larger units; Saurashtra, Kutch, and Bombay state. It had mostly Gujarati-speaking people in the north and Marathi-speaking people in the south. However, an agitation by both Gujarati and Marathi population for their own states led to the split of Bombay state on linguistic lines. Thus, on 1 May 1960, the new states of Gujarat and Maharashtra were created. Initially the capital of Gujarat was Ahmedabad but later it was moved to Gandhinagar in 1970.