Vadodara is the industrial capital of Gujarat and is home to two of the biggest names in oil and petrochemicals, the Oil and Natural Gas Corporation (ONGC) and the Indian Petrochemicals Corporation Limited (IPCL). Alembic pharmaceuticals, established in 1907 was the first modern factory set up in Vadodara. Subsequently, Sarabhai Chemicals, Jyoti, and many other large companies came up in the 1940s. The most dominant industrial sectors then were chemicals and pharmaceuticals, cotton textiles and machine tools.

The discovery of oil and gas in Ankaleshwar was an impetus to the industrialisation of Vadodara. Soon after, the Gujarat Refinery started its first phase of production in 1965. Large-scale industries such as the Gujarat State Fertilisers & Chemicals Corporation (GSFC), and Gujarat Alkalies and Chemicals Limited (GACL) were later established in the vicinity of the Gujarat Refinery.

Today, Vadodara is humming with industrial activity and is attracting entrepreneurs from all over the country.