Kutch is a growing economic and industrial hub in one of India's fastest growing states - Gujarat. Its location on the far western edge of India has resulted in the commissioning of two major ports Kandla and Mundra. These ports are near most to the Gulf and Europe by the sea route. The hinterland of north-western India hosts more than 50% of India's population.
Quality of roads is good in Kutch. The large part of the growth of Kutch came after tax relief provided by the government as part of 2001 earthquake relief.
Due to the existence of two major ports, transportation as a business has thrived. Since historical times the people of Kutch have formed the backbone of trade between Gujarat mainland and Sindh. After the formation of Pakistan this trade stopped for good, but due to the inception of the Kandla port, trade boomed again.
Kutch is Mineral rich region with very large reserve of Lignite, Bauxite, Gypsum among other minerals. Kutch got tax break for Industries for 15 years after the major earthquake on January 26, 2001. Lignite is mined only by Gujarat Mineral Development Corporation (GMDC) at its two mines in Panandhro and Mata no Madh. The Panandaro mines has now been reserved for GEB and GMDC power plants and GMDC has stopped supply to other industries from there. This has adversely affected local trucking business.
Kutch also houses Sanghi Industries Ltd's Cement Plant. It is the India's single largest Cement Plant. The company is now planning to increase the capacity at its Abdasa location from 3–9 million tons per annum. By 2015, the company plans to produce 20 million tons. Kandla port is also in Kutch. It is considered Gateway to India's North. It is managed by the Kandla Port trust.
Other major Industries in Kutch are Tata Power's first 4000 MW Ultra Mega Power Project (UMPP) of India. Adani Power expects to tie up funds for its 3300 MW plant by March 2012 and is on track to complete the installation of 10,000 MW
