Key Features:

1. Objectives of the Policy

The policy has several key objectives:

• Sustainable Growth: Promote sustainable and eco-friendly industrial growth.

• Global Competitiveness: Enhance Gujarat’s industrial competitiveness in the global market.

• Technological Innovation: Encourage the use of modern technologies in manufacturing.

• Employment Generation: Create large-scale employment opportunities for the state’s youth.

• Inclusive Development: Ensure industrial growth in all regions, especially underdeveloped or backward areas.

• Ease of Doing Business: Simplify regulations and processes to make it easier to set up and run businesses.

2. Key Provisions and Incentives

Here are the major components and incentives offered under the updated policy:

A. Financial and Capital Subsidies

• Capital Investment Subsidy:

  • New industrial units in Gujarat can avail up to 30% subsidy on capital investment, subject to a maximum of ₹15 crores.

  • Special emphasis is given to industries set up in backward areas of the state, with an additional 10% subsidy.

• Interest Subsidy:

  • The policy offers 7% interest subsidy on loans up to ₹50 lakh for new industrial units, with a maximum tenure of 5 years.

  • This subsidy is particularly targeted at MSMEs and small-scale industries.

B. Employment Generation

• Employment Generation Subsidy:

  • Industries that create direct employment will be eligible for an employment generation subsidy of ₹2,500 per employee per month for up to 3 years.

  • This is capped at 100 employees per unit and is applicable to industries that hire skilled or semi-skilled workers.

• Youth Employment: Special support is provided for youth employment with initiatives for skill development and apprenticeship programs.

C. Infrastructure Development

• Industrial Parks:

  • Dedicated Industrial Parks for various sectors, such as electronics, food processing, renewable energy, IT, and textiles.

  • Infrastructure support, including water, electricity, drainage, and road connectivity, is provided with subsidies to attract more businesses.

• Land Availability:

  • The policy facilitates land allocation at concessional rates, especially for MSMEs and startups.

• Greenfield Projects:

  • Greenfield projects, particularly in industrial corridors, can avail financial incentives for infrastructure and environmental compliance.

D. Technological Innovation and Upgradation

• Technology Upgradation Subsidy:

  • MSMEs are provided up to 50% subsidy for the purchase of new technology, machinery, and equipment to improve their production capabilities.

  • The maximum limit for this subsidy is ₹30 lakh for MSMEs and ₹1 crore for large industries.

• Research and Development:

  • Subsidies of up to 50% are offered for R&D activities, capped at ₹25 lakh.

  • Special incentives for industries involved in AI, robotics, and biotech.

E. Export and Market Development

• Export Promotion:

  • Export-oriented industries can avail subsidies up to 10% of export value to enhance their international market reach.

  • Participation in International Fairs: 50% subsidy for MSMEs for participating in international trade fairs, capped at ₹5 lakh per year.

• Market Linkages:

  • Support is provided for building market linkages, including financial assistance for e-commerce and retail exposure for small businesses.

F. Skill Development

• Skill Development Programs:

  • MSMEs can access subsidies for skill development programs aimed at improving the capabilities of their workforce.

  • The subsidy covers 50% of training costs (capped at ₹2 lakh per unit).

• Collaboration with ITIs and Vocational Training Centers: Partnerships between industries and skill training centers are encouraged for improving industrial workforce readiness.

G. Special Focus Sectors

The updated policy identifies priority sectors for growth, including:

• Renewable Energy: Special incentives for industries focused on solar, wind, and bioenergy.

• Electric Vehicles (EV): Financial incentives for the manufacturing of electric vehicles and EV batteries.

• Food Processing: Subsidies for cold storage and packaging facilities for food processing units.

• Pharmaceuticals & Biotech: Subsidies for research and manufacturing in the pharmaceutical and biotechnology sectors.

• IT and Electronics: Special focus on the electronics sector, including tax exemptions and subsidies for R&D in areas like semiconductors, mobile manufacturing, and computer hardware.

H. Green and Sustainable Industries

• Green Industry Incentives:

  • Industries adopting green practices (such as zero waste and renewable energy) can avail of additional 10% subsidy on capital investment.

  • Eco-friendly Manufacturing: The policy emphasizes the establishment of green manufacturing units with support for adopting clean technologies and reducing carbon footprints.

I. Backward Region Development

• Extra Incentives for Backward Areas: The policy provides extra incentives for setting up industries in backward or tribal areas, including:

  • Additional capital subsidies.

  • Land and infrastructure support.

  • Greater tax exemptions for new industries.

3. Ease of Doing Business

The Gujarat government continues its push for ease of doing business with the following initiatives:

• Single Window Clearance: An integrated online platform for approvals, licensing, and permits, ensuring quicker turnaround times.

• Self-Certification: Certain regulatory compliances can now be self-certified by industries to speed up processes and reduce administrative delays.

• Fast-Track Approvals: New industries can receive fast-track clearances for environmental, labor, and other regulatory permissions.

4. Investment Promotion and Support

• Investment Promotion Schemes: The policy also includes a dedicated Investment Promotion Cell to help investors navigate Gujarat’s industrial ecosystem and expedite approvals.

• Public-Private Partnerships (PPP): The state government encourages PPP models for large infrastructure and industrial projects.

5. Financial Support for Women Entrepreneurs

• Higher Subsidies: Women-led businesses receive 10% additional subsidies for capital investment and priority financing for setting up new units.

• Mentorship and Training: Programs aimed at empowering women entrepreneurs through specialized training in areas such as business management and market access.

6. Monitoring and Implementation

• Dedicated Monitoring Cell: A dedicated cell within the government will monitor the implementation of the policy and ensure the transparency and accountability of the support mechanisms.

• Annual Review: The policy will be reviewed annually to ensure its alignment with emerging industrial trends and global economic conditions.