Vibrant Gujarat Regional Push: PM Modi Bets on “Mini Japan” as India Eyes 3rd Largest Economy Tag

By The Neo Nation Bureau | MSME & Economy Desk Date: January 12, 2026

Rajkot: The road to a $5 Trillion economy runs through the factory floors of Rajkot and the solar parks of Kutch.

In a massive regional push for the Vibrant Gujarat Global Summit 2026, Prime Minister Narendra Modi addressed a gathering of industrialists and investors in Rajkot on Sunday, January 11. His message was singular and strategic: MSMEs are not just small businesses; they are the backbone of India’s march to becoming the world’s third-largest economy.

Speaking at the Vibrant Gujarat Regional Conference for Kutch and Saurashtra, the PM outlined a vision where these specific regions evolve from industrial clusters into global manufacturing anchors, likening their potential to a “Mini Japan.”

The “Anchor Region” Strategy

While previous summits focused on big-ticket MOUs in Gandhinagar, the 2026 edition has decentralized the narrative. PM Modi termed Kutch and Saurashtra as the “Anchor Regions” of India’s growth story.

• The MSME Powerhouse: Highlighting Rajkot’s engineering prowess, the PM noted that the district alone hosts over 2.5 Lakh MSMEs. “From screwdrivers to rocket components, Rajkot makes it all,” he stated, emphasizing that these units are now integral to global supply chains, including aerospace and defense.
• Green Energy Hub: The Kutch region is being transformed into the world’s largest renewable energy park. “The solar and wind energy parks here will be five times larger than the city of Paris,” Modi remarked, signaling that India’s green transition is being led from this arid desert.

Big Ticket Pledges: ₹8.5 Lakh Crore in One Day

The regional focus didn’t deter the titans of industry from making massive commitments. The Rajkot event witnessed staggering investment pledges, proving that the corporate appetite for Gujarat remains insatiable.

1. Reliance Industries (The ₹7 Lakh Cr Bet): Reliance Chairman Mukesh Ambani announced a massive ₹7 Lakh Crore investment in Gujarat over the next 5 years.

• The Plan: A significant chunk will go into transforming Jamnagar into a global “Green Energy Giga Complex” and building an AI-ready data center to democratize artificial intelligence for the masses.
• Olympics 2036: RIL also committed to upgrading sports infrastructure in preparation for India’s 2036 Olympics bid.

2. Adani Group (The ₹1.5 Lakh Cr Expansion): Karan Adani (MD, Adani Ports) pledged ₹1.5 Lakh Crore for the Kutch region.

• The Focus: Expanding the Khavda Renewable Energy Park (world’s largest) and doubling the capacity of Mundra Port to handle the surge in exports.

The “Reform Express”

PM Modi credited the “Reform Express” for this investor confidence. He cited next-generation reforms like 100% FDI in space and insurance, the modernization of labor laws, and the stabilization of GST as key drivers that have made Indian MSMEs competitive globally.

“Global institutions like the IMF now call India the ‘Engine of Global Growth’. This isn’t just luck; it’s the result of ten years of policy stability and the hard work of our MSMEs,” Modi asserted.

Why It Matters

This regional push is a signal to Tier-2 India. By bringing the “Vibrant Gujarat” spotlight to Rajkot, the government is validating that the next wave of industrialization won’t just happen in metro cities. For the MSME owner in Morbi or the startup founder in Jamnagar, the playing field just got a lot bigger.