Gujarat's New Industrial Policy To Focus On MSMEs & High-Growth Sectors, Targets Rs 10 Lakh Cr Investment

Gandhinagar, Jun 16 (KNN) Gujarat has unveiled its Viksit Gujarat Industrial Policy 2026, aiming to attract investments of Rs 10 lakh crore over five years, with a focus on micro, small and medium enterprise (MSME) support, enhanced incentives, promotion of emerging sectors, and a new urban decongestion framework.

R&D Incentives and Urban Decongestion

A notable feature of the policy is a 50 per cent capital subsidy for R&D centres, with building costs capped at 20 per cent of total investment. The subsidy is available for the first five R&D centres with a minimum investment of Rs 300 crore, subject to a cap of Rs 50 crore per annum for five years, according to FE.

In a first-of-its-kind initiative, the policy introduces Mission THRIVE — Transition for Harmonized Relocation and Inclusive Vibrant Economy — aimed at decongesting cities by encouraging eligible industrial units to relocate outside city limits. 

Relocated units will be treated as new units and become eligible for incentives, wage support, housing assistance, and relaxations in land conversion and transfer norms.

MSME and Ultra-Mega Project Support

The policy includes a dedicated incentive framework for MSMEs, offering support of up to 45 per cent of eligible fixed capital investment (eFCI) in Category-A talukas through a combination of capital subsidy, interest subsidy and power tariff benefits.

A new category of ultra-mega projects has also been created, under which units can avail incentive support of up to 40 per cent of eFCI in Category-A talukas and 35 per cent in Category-B talukas over a 12-year period.

Thrust Sectors

The policy identifies 21 thrust sectors for focused development, including green hydrogen and green ammonia, electrolysers, renewable energy equipment, battery storage systems, electric mobility, aerospace and space manufacturing, semiconductors, pharmaceuticals, critical minerals, nuclear power equipment, textile and electronic waste recycling, robotics and drones.

Startups, Women Entrepreneurs and Sustainability

Startups will be eligible for sustenance allowances of up to Rs 30,000 per month and seed support of up to Rs 40 lakh, with additional incentives for high-tech, fintech, biotech and green startups. 

Women entrepreneurs will receive extra interest subsidies, rental assistance and dedicated programmes supporting first-generation entrepreneurship and workforce re-entry after career breaks.

The policy also offers incentives for wastewater recycling, zero-liquid-discharge systems and cleaner production technologies. Support has been proposed for skill development centres, anchor institutes and industry-led training facilities.

Industrial Infrastructure and GDP Target

State Industries Minister Harsh Sanghavi said the policy includes incentives for private industrial parks, green industrial estates and worker housing including common dormitories, labour hostels and working women's hostels.

Gujarat currently contributes 8.4 per cent to India's national GDP, up from 8.2 per cent last year, and has set a target of raising its share to 10 per cent by 2047.

(KNN Bureau)