Nawanagar was an Indian state and then a princely state in the historical Halar region, located on the southern shores of the Gulf of Kutch. It was ruled by the Jadeja Rajput dynasty and became a part of newly formed India. Its capital city was Nawanagar city, now known as Jamnagar. It had an area of 3,791 square miles and a population estimated at 336,779 in 1901. Its rulers, who use the title of "Jam Saheb" are of the same clan as the Rao of Kutch. They were entitled to a 13-gun salute. The state flag was a rectangular red flag with a white elephant, near and facing the hoist. During the British, the state was part of the Kathiawar Agency, within the Gujarat Division of Bombay Presidency.
The state had a pearl fishery and much of its wealth came from this. From Wikipedia