Gujarat Chief Minister Narendra Modi Sunday claimed that the state was ranked at par with not just the best Indian states, but with leading Asian economies.

"Gujarat has become the first choice for investors around the world," he said, congratulating the people of Gujarat on the occasion of the 46th foundation day of the state.

"We reaffirm our commitment to realise the potential of the state to the maximum," he added.

"The policy as well as my government's intention are clear - the 21st century is the century of development and good governance. We have created the conditions for a powerful and capable state," Modi said.

"Gujarat is progressing on international benchmarks in every sector of development," he said.

"The state is emerging as the petroleum capital of the country. We have employed new technology and found gas in the Khambhat and Dholka fields.

"The state leads the race in the setting up of special economic zones (SEZ). Five SEZs have come up on the state's shoreline and three more are going to be set up," he said.

The foundation day was celebrated in Bhavnagar city, 210 km from here.

The day, christened by Modi as "Gujarat Gaurav Din" (Gujarat Pride Day), was observed last year in Surat, the second largest city of the state.

Celebrations were kick-started in Bhavnagar, known as the cultural city of the Saurashtra region, Friday with various cultural programmes in the evenings and illumination at night.

Modi and his cabinet ministers arrived in the city Saturday evening.

An exhibition was organised on the state's progress since 1960, when it was carved out of the erstwhile Bombay state.

--Indo-Asian News Service