Ahmedabad could undergo a major transformation in its industrial landscape over the next few years as the authorities are considering moving industrial activities away from the city’s urban limits.
The proposed change forms part of Ahmedabad’s longer-term urban development strategy as the city prepares to host the 2030 Commonwealth Games and strengthens infrastructure linked to India’s ambitions for the 2036 Olympic Games.
Ahmedabad was formally con¿rmed as the host of the 2030 Commonwealth Games in November 2025.
According to a proposal, industrial zones currently located within the jurisdiction of the Ahmedabad Municipal Corporation (AMC) and the Ahmedabad Urban Development Authority (AUDA) could eventually be converted to non-industrial land-use zones. The plan would also restrict the establishment of new industrial units within these urban limits.
Existing industrial businesses may face limitations on major expansion or restructuring at their present locations as the authorities work towards gradually reducing industrial activity inside densely developed parts of Ahmedabad. However, several implementation details are still under consideration and should not yet be treated as ¿nal regulations.
Existing industries could receive a transition period before being expected to move to designated industrial locations outside the city’s urban boundaries. The broader objective is reportedly to complete the industrial relocation process by around 2030.
The relocation initiative is closely connected with Project T.H.R.I.V.E. — Transition for Harmonized Relocation and Inclusive Vibrant Economy, introduced under the Gujarat Industrial Policy 2026. Rather than relying only on restrictions, the policy framework is designed to make relocation ¿nancially and operationally more attractive for eligible industrial units. Industrial estates associated with the Gujarat Industrial Development Corporation (GIDC) within the aႇected urban areas may also form part of the relocation framework.
Higher FSI
Industries shifting operations under the THRIVE framework could potentially receive substantially higher FSI at their new locations. The government has also been considering relief related to land-use conversion charges. These measures are intended to reduce some of the ¿nancial burden associated with shifting an established industrial operation to a new site.
