In 1994, the Mundra Port was announced at Mundra. The operation started in October 1998. In subsequent years, the port expanded rapidly resulting in rapid expansion of the town and population. During the January 2001 Gujarat earthquake, Mundra was the only place in the district of Kutch which was not affected by the devastation. Following the earthquake, the tax incentives were granted for setting up new industries in this district which led to the rapid industrialisation of this region. In 2014, Mundra Port surpassed Kandla in cargo handling and became the largest private port of India. On 29 August 2020, Mundra and Baroi Gram Panchayats were merged to form the Mundra-Baroi Municipality.