Gujarat is the westernmost state of India. It is bounded by the Arabian Sea to the west and southwest, and Pakistan to the north. The state of Rajasthan is to the northeast, Madhya Pradesh to the east, and Maharashtra and the union territory of Dadra and Nagar Haveli to the south and southeast of Gujarat.
The Indian state of Gujarat was created in 1960 out of the 17 northern districts of former Bombay State: Ahmedabad, Amreli, Banaskantha, Bharuch, Bhavnagar, Dang, Jamnagar, Junagadh, Kheda, Kutch, Mehsana, Panchmahal, Rajkot, Sabarkantha, Surat, Surendranagar, and Vadodara.
In 1964 Gandhinagar District was formed from parts of Ahmedabad and Mahesana, and in 1966 Valsad District was split from Surat. On October 2, 1997 Anand District was split from Kheda, Dahod District was split from Panchmahal, Narmada District was split from Bharuch, Navsari District was split from Valsad, and Porbandar District was split from Junagadh. In 2000 Patan District was formed from parts of Banaskantha and Mahesana
The economy of Gujarat shows that it is one of the most prosperous states of the country, having a per-capita GDP 2.47 times India's average. According to the data published by "Center for Monitoring Indian Economy" or CMIE, Gujarat ranked third among all the states of India in 2004, approximately same as Punjab and Maharashtra, at Rs. 15,800. Major Agricultural produce of the state include cotton, peanuts, dates, sugarcane, milk & milk products. Industrial products include cement, and petrol. Gujarat is the largest producer of milk in India. Amul, located at Anand is one of the largest milk product producer co-operatives in the world.
Surat is a hub of the global diamond trade. It is home to a thriving diamond trade and diamond cutting industry. Alang Ship Recycling Yard, located 50 km southeast of Bhavnagar, on the Gulf of Khambhat, is the world's largest ship breaking yard. Reliance Petrolieum Limited, one of the group companies of Reliance Industries Limited founded by Dhirubhai Ambani operates the oil refinery at Jamnagar which is the world's largest grassroots' refinery.