She noted her Indian-American background, saying she would always be the proud daughter of immigrants.
"I will always be the proud daughter of immigrants. I will always cherish our family's experience. And I will always strive in my actions and in my words to make South Carolina a place where all of our children, regardless of race or gender, know that unlimited opportunities for happiness and success await them," she said.
After state Supreme Court Chief Justice Jean Toal administered the oath of office, she kissed her husband Micahel Haley, in military uniform, who held the Bible. Then she kissed her children Nalin, 9, and Rena, 12.
"On this special day, I want to thank Michael and my two sweet children for the unconditional love and support they continue to show me. We as a family are honoured to serve this great state.
"Michael and I want to thank both of our families for the strength, guidance, and advice they give us during the best and the most challenging times. They are constant reminders of what it means to carry ourselves with grace and dignity," she said.
Then she thanked retiring Governor Mark Sanford, her early mentor, who paved the way for her ascendancy in politics.
"To Mrs Jenny Sanford, thank you for representing South Carolina with strength and grace for the last eight years. Your friendship has meant so much to our family.
"To the Sanford boys, thank you for allowing the people of South Carolina the opportunity to watch you grow up into fine young men. Rena and Nalin look forward to continuing your games and mazes at the Mansion," she noted to the laughter of the people.
"I stand before you today, the proud daughter of Indian immigrants. Growing up in rural, small town South Carolina, my family experienced this state and this country at its best. No, not every day was perfect. No, we were not always free from the burdens faced by those who look and sound different.
"But we counted our blessings, and my parents reminded me and my brothers and sister every day how blessed we were to live in this country. We saw the constant example of neighbours helping neighbours.
"For us, happiness existed in not knowing what we didn't have, and in knowing that what we did have was the opportunity to better our lives through hard work and strong values.
"You see, my mother was offered one of the first female judgeships in her native country, but was unable to serve on the bench because of the challenges of being a woman in India. Now she sits here today watching her daughter become Governor of South Carolina, the state she proudly calls her home. When you grow up with a mom like that, the word 'can't' is not in your vocabulary," she said.
She looked back at the history of the state as well as its current situation.
"Today is a great day in South Carolina!
"It's a day for new beginnings. It's a day to turn the page from the past. And it's a day filled with anticipation of the next chapter in our state's future," she said.
Haley added, " I do take comfort in, and agree with, the words of columnist George Will, when he recently wrote this about our state's past struggles: "If the question is which state has changed most in the last half-century, the answer might be California. But if the question is which state has changed most for the better, the answer might be South Carolina."
Haley, the second Indian American to become the governor of a state, concluded her speech by saying, "That is my South Carolina. It's the South Carolina I want for my children and for every family in our great state.
"So, with faith in God, who knows what is right, and faith in our own ability to use the skills and judgment He gives us to do what is right, we can make this vision a reality.
"Thank you. May God bless South Carolina. And may He continue to bless the United States of America."
Image: Nikki Haley with husband Michael and children Rena and Nalin | Photograph: Paresh Gandhi
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