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Post-independence

Initially there was confusion over whether Junagadh would join India or Pakistan. This was resolved in 1947 with a plebiscite for full union with India following the next year.

After Indian independence and the partition of India in 1947, the new Indian government grouped the former princely states of Gujarat into three larger units; Saurashtra, which included the former princely states on the Kathiawad peninsula, Kutch, and Bombay state, which included the former British districts of Bombay Presidency together with most of Baroda State and the other former princely states of eastern Gujarat. Bombay state was enlarged to include Kutch, Saurashtra (Kathiawar) and parts of Hyderabad state and Madhya Pradesh in central India. The new state had a mostly Gujarati-speaking north and a Marathi-speaking south. Agitation by Gujarati nationalists, the Mahagujarat Movement, and Marathi nationalists, the Samyukta Maharashtra, for their own states led to the split of Bombay state on linguistic lines; on 1 May 1960, it became the new states of Gujarat and Maharashtra. In 1969 riots, at least 660 died and properties worth millions were destroyed.

The first capital of Gujarat was Ahmedabad. The capital of Gujarat was moved to Gandhinagar in 1970. Nav Nirman Andolan was a socio-political movement of 1974. It was a students' and middle class people's movement against economic crisis and corruption in public life. This was the first and last successful agitation after the Independence of India that ousted an elected government.

Gujarat has emerged as an important industrial hub in India. In Western India Surat was among the strongest industrial clusters in the 1970s. Between 1971 and 1981 diamond cutting was established as industry in Surat. At the same time the production of artificial silk and a substantial petrochemical industry became a fixture in Surat.

The Morvi dam failure, in 1979, resulted in the death of thousands of people and large economic loss. In the 1980s, a reservation policy was introduced in the country, which led to anti-reservation protests in 1981 and 1985. The protests witnessed violent clashes between people belonging to various castes.

The 2001 Gujarat earthquake was located about 9 km south-southwest of the village of Chobari in the Bhachau taluka of Kutch District. This magnitude 7.7 shock killed around 20,000 people (including at least 18 in South-eastern Pakistan), injured another 167,000 and destroyed nearly 400,000 homes.

In February 2002, the Godhra train burning led to statewide riots, resulting in the deaths of 1044 people – 790 Muslims and 254 Hindus, and hundreds missing still unaccounted for. Akshardham Temple was attacked by two terrorists in September 2002, killing 32 people and injuring more than 80 others. National Security Guards intervened to end the siege killing both terrorists. On 26 July 2008 a series of seventeen bomb blasts rocked Ahmedabad, killing and injuring several people.