Governmental policies and its impact on the development of Gujarat as the economy of Gujarat is one of the fastest growing economies among all Indian states. The State emerged stronger and a symbol of hope for the rest of the country in terms of economic and industrial development. Gujarat is one of the states to have responded punctually and effectively to the new liberal policies. The government has been open to new ideas, technology, including organizational and management governance practices, and has designed policy responses to overcome economic challenges. The analysis in this paper suggests that stakeholders in Gujarat have been able to create an environment in which improving quality of living, focusing on basic needs, and quality of life are the main focus of public policies and discourse. Such focus is favorable to broad-based growth and upward economic and social mobility, and diversity, permitting introduction of new ideas in organizing different activities.