South Indian, I have lived 20 years in gujarat and 5 years in karnataka. You are wrong on all fronts. Gujarat is more advanced than karnataka on a number of fronts - more industrialized - Multi industry base in gujarat - chemicals, pharma, engineering, petroleum, infra, etc. It even has sizable IT but more smaller firms. - Karnataka just has IT and that too only in Bangalore - Gujarat - the industrialization is well spread, ahmedabad, baroda, surat, rajkot etc. are all having industrial development, plus dahej and kandla have big ports. - Wealth distribution - Wealth distribution in gujarat is way too good. It is spread in both urban and rural areas and people in remote villages also invest in stock market. Karnataka is by and large a single city phonomena. -Infrastructure - Gujarat's power situation is amazing (all villages have electricty 3 phase for most of the day and night), roads are good across the state, train connectivity is good, sewage network is good, with narmada water even drinking water issues are less as compared to karnataka. And gujarat is actually a desert state still it is better. Ahmedabad has the best quality electriciity in the country - even better than bombay. Bangalores sucks on all infrastructure areas, and the less we talk about other places the better. -guajartis may not be very literate but they are educated and have awareness. They are self employed so formal higher schooling is not considered important. Health facilityes are better.