FISME Hails Flexible Incentive Mechanism In New Gujarat Industrial Policy 2026

New Delhi, Jun 18 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME), the national body representing micro, small and medium enterprises (MSMEs), has welcomed the launch of Gujarat Industrial Policy 2026, noting that its two key provisions related to MSME globalisation and anchor investment strategy stand out from industrial policies of other states.

FISME stated that a key philosophical shift in the policy is its departure from treating MSMEs purely as subsidy beneficiaries. Instead, the policy positions them as future growth enterprises that should graduate beyond the MSME category, with an emphasis on scaling, value chain integration and global competitiveness rather than permanent dependence on incentives.

Point 19: ‘Nudging MSMEs to Go Global’

FISME interpreted Point 19 of the industrial policy as Gujarat's attempt to build a ‘missing middle’ strategy — helping firms transition from micro and small scale into nationally and globally competitive manufacturing enterprises.

The policy offers MSMEs flexibility in choosing their incentive mix, allowing firms to combine capital subsidy, interest subsidy and power tariff support within an overall ceiling, with higher support available in Category-A talukas. 

Additional incentives cover quality certifications, ERP implementation, patent registration, technology acquisition, SME exchange listing and market development activities.

FISME also highlighted the policy's emphasis on technology upgrading, innovation infrastructure and environmental compliance — including support for common effluent treatment plants, wastewater recycling and Zero Liquid Discharge systems — as reflecting a comprehensive competitiveness agenda rather than a narrow investment-promotion approach.

Point 20: ‘Catalyzing Large and Mega Scale Investments’

On Point 20, which governs incentives for large, mega and ultra-mega investments, FISME said its significance from an MSME perspective lies in its indirect effects. 

The federation noted that large anchor investments generate demand for ancillary industries, component manufacturers, logistics providers and maintenance services — roles typically filled by MSMEs — effectively drawing them into broader supply chains.

The industry body described Point 20 as a cluster and value-chain development approach, where large anchor investments serve as growth engines and MSMEs form the surrounding supplier network. 

The policy's linkage of incentives to employment generation was also noted as a sign that the framework is tied to broader economic outcomes rather than investment volumes alone.

FISME said that if implemented effectively, this model could generate greater long-term MSME growth than standalone subsidy schemes, citing successful precedents in sectors such as automobiles, chemicals, electronics and pharmaceuticals.

(KNN Bureau)