Ahmedabad, in the state of Gujarat, which like Chennai, is not new to the outsourcing industry. The city is close to Mumbai, the country's financial and commercial capital, has a large pool of skilled IT professionals, improved infrastructure, and low attrition rates.

Ahmedabad is also home to one of the new infrastructural trends taking place in a few Indian cities; Township projects. These involve housing units, spaces for work, commercial purposes, and leisure, 'green' areas, and recreational areas like golf courses and artificial lakes. A number of these are being built on the outskirts of cities like Bangalore, Pune, Chennai, and Hyderabad. These townships usually cover several hundred acres in area and the developer holds responsibility for infrastructure within them.

Also According to the article published in the Economic Times
dated 21 st May 2005, Rajiv Gandhi Foundation finds Gujarat governed by Shri Narendra Modi as the Best Governed State.

Safety
Safety of life is an essential component (of economic freedom). Gujarat has a very small share of the total crimes being accounted for by violent crimes such as murder, rape, kidnapping, abduction, riots, arson, dowry deaths.

Business Friendly
Gujarat- according to the Foundation has a more business friendly environment. Least number of mandays are lost as a result of strikes and lockout as a ratio of total industrial workers in the state.
 
Liberal License Regime
Gujarat liberal license regime has also come for praise in the report.
 
Corruption Is Relatively Low
Corruption is measured in terms of cases pending investigation as a ratio of total cases registered under Prevention of Corruption and related acts.
 
Excellent Police Investigation Record  
In Gujarat, a large share of the cases that are taken up by the police are ensured complete investigation.
 
Size Of Government
On the size of government, Gujarat comes in the first position.