Gujarat Set to Achieve 50.7% Urban Population by 2027

Gujarat is poised to become predominantly urban by 2027, with projections indicating that over 50% of its population will reside in urban areas for the first time. The state’s total population is expected to reach approximately 7.48 crore by 2027, according to estimates from the state government’s Socio-Economic Review 2025-26. This marks a significant demographic shift, with 3.79 crore people living in cities and 3.69 crore in rural areas, resulting in an urban share of 50.69%.

The transformation of Gujarat’s urban landscape has been evident for years. The state has established nine new municipal corporations since 2011, reflecting the growing administrative demand as urban areas expand. The population in urban regions has increased from 42.6% in the 2011 Census, markedly higher than India’s national average of 31.14% at that time. Urban planners have noted a projected increase of roughly 8 percentage points between 2011 and 2027, surpassing national trends.

M Thennarasan, principal secretary of the urban development and urban housing department, emphasized the importance of urbanization for Gujarat’s economic future. He cited a World Bank study predicting that by 2050, between 67% and 70% of the population could be living in urban areas. Thennarasan referred to cities as “engines of economic growth,” driven by advancements in services, education, infrastructure, and planned development.

In recognition of the rapid urbanization, the Gujarat government has declared the current year as “urban year” and allocated a budget of Rs 33,500 crore towards urban development initiatives. This funding aims to improve facilities, develop satellite townships, and promote transit-oriented growth.

The expansion of urban governance has kept pace with population growth. The number of municipal corporations in Gujarat has increased from eight in 2011 to 17 today, with new additions including Navsari, Vapi, Anand, Morbi, and Gandhidham. The area under municipal governance has also risen, now covering 481 square kilometres, up from 466 square kilometres in 2011. Plans are underway to extend Ahmedabad’s city limits to include Sanand, a significant industrial hub.

Rutul Joshi, an urban planner at CEPT University, noted that the trend towards urbanization was anticipated. “Gujarat has been an industrial state since its formation, and with industrialization comes urbanization,” he explained. The urban population reached its peak in cities like Ahmedabad, Vadodara, Surat, and Rajkot in 1980, and planners had projected that the urban population would surpass the rural population by 2025.

Looking further ahead, state government projections suggest that by 2036, approximately 55% of Gujarat’s population will live in urban areas. In contrast, India is expected to remain predominantly rural, with around 39.06% of its population in urban regions and 60.94% in rural areas. Gujarat’s urban population is growing at an annual rate of about 0.5%, outpacing the national rate of approximately 0.3%. Over the next decade, the state’s urban share is projected to increase by 4.3 percentage points, compared to around 2.7 percentage points for India.

As Gujarat continues this trajectory of urban growth, the implications for economic development and resource allocation will be crucial in shaping the future of both the state and its cities.