Khambat (kŭmˈbət) [key] or Cambay kămbāˈ, town (1991 pop. 76,724), Gujarat state, W India, on the Mahi River estuary. Khambat is a trading center whose industries include textile weaving, carpet-making, petroleum, and manufactures in salt and stone ornaments. Once a great port under the Muslim rulers of Gujarat (14th–15th cent.), Khambat lost its importance when the harbor silted up. Until 1948 it was the capital of the former princely state of Khambat. The Gulf of Khambat, a shallow arm of the Arabian Sea, lies between Kathiawar peninsula and Gujarat.