She became the first woman Chief Minister of Gujarat.
She took oath at 12.39 pm in the presence of Modi, senior Bharatiya Janata Party (BJP) leaders Venkaiah Naidu, Gopinath Munde and Keshubhai Patel, and Bollywood actor Vivek Oberoi.
Her new Cabinet also took oath after her.
Gearing up to take oath as the Prime Minister of India on May 26, Modi on Wednesday congratulated Patel and said the Indian state will 'scale new heights' in the coming years.
"Its a matter of immense pride & joy that Gujarat is getting its 1st woman CM in Anandiben Patel. My best wishes with her as she takes over," Modi tweeted.
"In Anandiben, we have a dedicated Party Karyakarta with a rich experience in administration. Gujarat will scale new heights in years to come," he said.
Modi on Wednesday filed his resignation from the post of Gujarat Chief Minister to state Governor Kamla Beniwal.
"Received a very emotional farewell in the Vidhan Sabha. Members cutting across party lines offered their wishes," Modi posted on his Twitter homepage.
Modi-led the BJP and the NDA to a historic win against the Congress winning a whopping 336 seats in the recently concluded Lok Sabha election.
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