State chief minister Bhupendra Patel announced the ‘Viksit Gujarat Industrial Policy-2026’ that offers 15-50 per cent incentives across sectors.
India’s Gujarat state yesterday unveiled an industrial policy to attract investments worth ₹10 trillion in the next five years.
The policy offers 15-50 per cent incentives across sectors and has four pillars—investment and manufacturing; innovation and research; skill development and employment; and sustainability and inclusive growth.
It includes a comprehensive support framework for start-ups.
The focus is on advanced manufacturing, innovation and support for start-ups that will aid the state’s journey towards turning a $3.5-trillion economy by 2047, an official release said.
Patel said the policy has four pillars—investment and manufacturing; innovation and research; skill development and employment; and sustainability and inclusive growth.
The policy includes a comprehensive support framework for start-ups, including monthly sustenance allowances of up to ₹30,000 for eligible ventures with women co-founders, seed support of up to ₹3 million and additional incentives for high-tech, fintech, biotech and green start-ups.
Micro, small and medium enterprises (MSMEs) are eligible for incentives worth 35-45 per cent of eligible fixed capital investment through a mix of capital subsidy, interest subsidy and power tariff reimbursement depending on their location and category.
The policy has identified 21 high-growth thrust sectors, which include green energy ecosystems, mobility, capital equipment, textiles and apparel, sustainability, chemicals, agro-processing, textile waste recycling, sports goods, toys and footwear. These sectors will be eligible for enhanced incentives of up to 50 per cent.
Large industries in thrust sectors can avail incentives ranging from 25-35 per cent, while mega and ultra-mega projects can receive support of up to 40 per cent.
The policy has been prepared after consulting the industry and other stakeholders while taking into account emerging trends like artificial intelligence, green energy and reconfiguration of global supply chains, he said.
Green and sustainable industrial development is a key focus area, and provisions have been incorporated into the policy encouraging green industrial parks, wastewater recycling, zero-liquid-discharge systems, cleaner production technologies and circular economy practices, Patel added.
State chief secretary M K Das told reporters the policy is expected to attract investments worth around ₹10 trillion in five years and further strengthen Gujarat’s position as the country’s industrial growth engine.
Gujarat would place special emphasis on research and development (R&D), innovation and sunrise sectors, with incentives of up to 50 per cent in select areas to encourage technological advancement and entrepreneurship.
The policy introduces a ‘Choose Your Incentive’ framework under which investors can customise their support package by selecting a combination of capital subsidy, interest subsidy and power tariff reimbursement according to their project requirements.
The state will also set up a Gujarat Research and Innovation Park and develop a portal to facilitate access to testing and R&D infrastructure.
Relocating units will be treated as new units and receive wage support, capital subsidies, worker housing assistance and regulatory relaxations.
Fibre2Fashion News Desk (DS)
