Bhavnagar, city in western India, in Gujarat State, on the Gulf of Khambhat. The city is a rail terminus and has an extensive trade in cloth and lumber. Industries include the manufacture or processing of bricks, candy, fertilizer, ice, plastics and rubber products, textiles, vegetable oil, and handicrafts. Founded in 1723, the city was the capital of the princely state of Bhavnagar until 1948. Population (1991) 402,338.