In the 1970s, the Government of Gujarat announced a tax exemption and subsidies which resulted in an increase in the number of films, but the quality declined.

The industry has been partially revived in the 2010s due first to rural demand, and later to an influx of new technology and urban subjects in films.

This full-length (132 minutes, 12,000 feet (3,700 m)) film was produced by Elphinstone Bioscope Company of Calcutta (now Kolkata in West Bengal), and is considered Bengali.

Suchet Singh established the Oriental Film Manufacturing Company of Bombay with the help of Hajimahamad Allarakha, an editor of the popular Gujarati magazine Visami Sadi, in 1919.

The silent film Narsinh Mehta (1920), produced by Oriental, featured the Gujarati song "Vaishnav Jan To", which was sung by the audience and musicians in cinema halls with relevant scenes on screen.

Manorama (1924) was directed by Homi Master and was based on Hridaya Triputi, an autobiographical poem by the Gujarati poet Kalapi.

The Sharda Film Company was established in 1925, financed by Mayashankar Bhatt and run by Bhogilal Dave and Nanubhai Desai.

Another two-reel short, Mumbai ni Shethani was premiered along with Madan's Shirin Farhad on 9 January 1932 at Wellington Cinema, Bombay.

It was directed by Nanubhai Vakil, produced by Sagar Movietone, and starred Mohanlala, Marutirao, Master Manhar, and Miss Mehtab.

Ghar Jamai starred: Heera, Jamna, Baby Nurjehan, Amoo, Alimiya, Jamshedji, and Gulam Rasool.

[4] Kanku (1969), directed by Kantilal Rathod, was based on the short story by Pannalal Patel originally written in 1936 and later expanded into a novel in 1970.

[4][18] Sanjeev Kumar, a popular Hindi film actor, acted in: Ramat Ramade Ram (1964), Kalapi (1966) and Jigar ane Ami (1970).

[4][17] Vidhata (1956), Chundadi Chokha (1961), Ghar Deevdi (1961), Nandanvan (1961), Gharni Shobha (1963), Panetar (1965), Mare Jaavu Pele Paar (1968), Bahuroopi (1969) and Sansarleela (1969) were adapted from Gujarati literary works.

This policy resulted in an influx of people interested in monetary benefits who did not have any technical or artistic knowledge, thus the quality of films declined substantially.

[4] Kanti Madia adapted Vinodini Nilkanth's short story Dariyav Dil for the film Kashino Dikro (1979).

Dinesh Raval directed twenty six hit films including: Mena Gurjari (1975), Amar Devidas (1981) and Sant Rohidas (1982).

Actor-director Krishna Kant, popularly known as KK, directed about a dozen Gujarati films including: Kulvadhu (1977), Gharsansar (1978), Visamo (1978) and Jog Sanjog (1980).

Chandrakant Sangani directed the musical film Tanariri (1975), based on the Gujarati folk-lore of Tana and Riri, which highlighted a little-known side of Akbar who is usually presented as a consistently benign ruler.

Subhash J. Shah directed several popular films: Lohi Bhini Chundadi (1986), Prem Bandhan (1991), Oonchi Medina Ooncha Mol (1996), Parbhavni Preet (1997), and Mahisagarna Moti (1998).

He made several films with urban backgrounds such as Mota Gharni Vahu, Lohini Sagaai (1980) based on the novel by Ishwar Petlikar, Paarki Thaapan, Shetal Tara Oonda Paani (1986) which were commercially as well as critically successful.

[23] Hun Hunshi Hunshilal (1991), directed by Sanjiv Shah, was an allegory film inspired by the political environment of the time and was felt to be post-modern.

[4][27] Other hit films of 1990s were Manvini Bhavai (1993), Unchi Medi Na Uncha Mol (1997) and Pandadu Lilu Ne Rang Rato (1999).

Popular Gujarati film actresses included: Mallika Sarabhai, Rita Bhaduri, Aruna Irani, Jayshree T., Bindu, Asha Parekh, and Snehlata.

[35] The quality of the films declined due to the focus on recovering the financial investments and profits as well as not adapting to changing times, technology and demographics.

[5] Maiyar Ma Mandu Nathi Lagtu (2001) directed by Jashwant Gangani, starring Hiten Kumar, was well received.

[42][5] Hiten Kumar, Chandan Rathod,[4] Hitu Kanodia, Mamta Soni, Roma Manek and Mona Thiba are popular among rural audiences.

[51][52] Kevi Rite Jaish (2012) and Bey Yaar (2014), both directed by Abhishek Jain; became commercially and critically successful drawing an urban audience.

[73][74] Chhello Show (2021), directed by Pan Nalin, was selected as the Indian entry for the Best International Feature Film at the 95th Academy Awards.

[75] According to film producer Bhavesh Upadhyay and publicist Chetan Chauhan, the annual business of Gujarati cinema had reached about ₹200 crore (US$23 million) by 2022.

There were a large number of films based on mythological narratives and folklore produced in the early years of Gujarati cinema.