Why Gujaratis Are Leading India in E-Commerce and Digital Payments

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  By Gujju Ticks

  17 May, 2025

In recent years, India has witnessed an unprecedented digital transformation. From rapid smartphone penetration to the explosive growth of UPI (Unified Payments Interface), the country is racing toward a digitally-enabled economy. But within this national shift, one community consistently finds itself ahead of the curve—Gujaratis.

Whether it’s owning thriving online businesses, adopting digital payments early, or investing in tech startups, Gujaratis are making bold strides. But what exactly makes Gujarat and its people such a force in India's digital economy?

Let’s explore the socio-cultural, economic, and technological reasons why Gujaratis are leading India in e-commerce and digital payments.

1. Entrepreneurial Legacy and Business DNA

Gujaratis have always had a strong entrepreneurial streak. For generations, they have dominated sectors such as textiles, diamonds, shipping, and pharmaceuticals. This ingrained business culture naturally lends itself to digital commerce.

E-commerce, unlike traditional retail, requires a unique mix of risk-taking, strategic thinking, and adaptability—traits that Gujaratis have long embodied. It’s no surprise that many Gujarati entrepreneurs were among the first to pivot their traditional businesses online.

Case in point: 

Many Patels from Gujarat now run successful online grocery platforms in the U.S. and UK, adapting their deep business roots to the modern digital framework.

2. Early Adoption of Digital Payments

Even before demonetization in 2016, cities like Ahmedabad, Surat, and Rajkot were already seeing a rise in digital wallet usage. Post-2016, Gujarat emerged as one of the top states in UPI adoption, per NPCI data.

According to a 2023 report by PhonePe Pulse:

• Gujarat ranks among the top five states for volume of UPI transactions.

• Tier-2 and Tier-3 cities like Bhavnagar and Jamnagar have shown over 150% year-on-year growth in digital payments.

Gujaratis, known for being tech-savvy traders, quickly understood the benefits of UPI: faster transactions, lower costs, and complete transparency—key for managing a scalable business.

3. Rapid Urban and Digital Infrastructure Growth

Gujarat’s infrastructural growth, especially in cities like Ahmedabad, Gandhinagar (home to GIFT City), and Vadodara, has laid a strong foundation for e-commerce growth. The availability of fast internet, widespread mobile connectivity, and an educated workforce has enabled startups to flourish.

GIFT City, India’s first operational smart city and international financial services hub, is further attracting fintech players and digital-first entrepreneurs, many of whom are Gujaratis returning from abroad.

4. Gujarati Diaspora Influence and Global Exposure

The global Gujarati community—especially in the U.S., U.K., and East Africa—often sets trends that filter back to the homeland. Many young entrepreneurs in Gujarat have relatives abroad who are into Amazon FBA, Shopify, or crypto startups.

This international exposure has encouraged a new generation to explore dropshipping, digital marketing, and affiliate e-commerce, leading to a boom in online business registrations from Gujarat.

5. Government and Private Sector Push

The Gujarat government has been proactive in supporting the digital ecosystem. Initiatives like:

• Digital Gujarat Portal

• Startup Gujarat

• Support for MSMEs transitioning to online platforms

…have all contributed to the ease of doing business digitally.

In addition, private firms and local business associations like FICCI Gujarat Council and Gujarat Chamber of Commerce & Industry have actively organized workshops on e-commerce, digital taxation, and cyber security.

6. Cultural Emphasis on Education and Technology

Gujaratis have always placed a premium on education. The new wave includes:

• Young engineers graduating from IIT-Gandhinagar, Nirma University, and Dhirubhai Ambani Institute of ICT.

• A large number of self-taught coders and digital marketers from Tier-2 cities.

With access to online courses, bootcamps, and startup incubators, a tech-savvy Gujarati youth is now building D2C brands, payment gateways, and e-commerce logistics solutions.

7. Success Stories: From Local to Global

Some inspiring Gujarati success stories include:

• Nykaa’s Falguni Nayar, who hails from a Gujarati family, built one of India’s most successful beauty e-commerce platforms.

• Paytm’s original funding and operational support came from various Gujarati investors and advisors.

• Zaveri Bazaar jewelers now operate robust online storefronts with live shopping features, serving NRIs worldwide.

Even traditional Gujarati brands like Amul have transitioned seamlessly to online ordering, subscription models, and UPI-based payments.

8. Thrift, Trust, and Technology

Gujaratis are known for their financial acumen—spending wisely and saving smartly. This cultural value extends to their approach to digital business:

• They prefer low-investment, high-return models like affiliate marketing, SaaS resale, and Shopify dropshipping.

• They adopt technology that helps in cost-cutting, such as AI-powered inventory tools, CRM systems, and WhatsApp commerce bots.

This ability to blend traditional business values with new-age tools is a major reason behind Gujarat’s dominance.

Final Thoughts: Gujarat at the Heart of India’s Digital Economy

As India moves toward a $1 trillion digital economy, Gujarat stands as a role model of how tradition and technology can go hand in hand.

Whether it's a diamond trader in Surat using blockchain to track shipments or a college student in Ahmedabad running a profitable Etsy store, Gujaratis are redefining what it means to be a modern entrepreneur.

This is not just a regional story—it’s a blueprint for India’s digital future.

FAQs

Q: What are the top e-commerce sectors in Gujarat?

A: Jewelry, textiles, handicrafts, agro products, and D2C FMCG brands.

Q: Are there government schemes in Gujarat for e-commerce startups?

A: Yes. Schemes under Digital Gujarat and Startup Gujarat offer funding, mentoring, and tax benefits.

Q: How tech-savvy is rural Gujarat?

A: Increasingly so. Mobile internet, UPI, and social commerce platforms like WhatsApp Business are gaining massive adoption.