Gujarat Industrial Policy 2026 targets Rs 10 lakh crore with focus on manufacturing and start-ups

The Gujarat government has rolled out the Viksit Gujarat Industrial Policy-2026, setting a target of Rs 10 lakh crore in investments over five years. The plan focuses on advanced manufacturing, innovation, and support systems for start-ups. Officials said the roadmap also seeks to speed up Gujarat’s move towards a USD 3.5 trillion economy by 2047.

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Chief Minister Bhupendra Patel launched the policy at Mahatma Mandir Convention Centre in Gandhinagar. Deputy Chief Minister Harsh Sanghavi, Chief Secretary M K Das, senior bureaucrats, and industry representatives attended the event. Patel said the document linked Gujarat’s goals with national plans for Viksit Bharat @2047.

Gujarat industrial policy incentives and investment target

After the launch, M K Das told reporters the government expected about Rs 10 lakh crore during the policy period. Das said the policy should further strengthen Gujarat’s role as the country’s industrial growth engine. Incentives were outlined across sectors, with rates starting at 15 per cent and going higher for priority areas.

Harsh Sanghavi said the policy was designed as more than an incentive plan. Sanghavi said industries could get incentives from 15 per cent to 45 per cent across sectors. Sanghavi added that select areas could receive up to 50 per cent support. The goal was to draw investments and jobs within Gujarat.

Gujarat industrial policy thrust sectors and Choose Your Incentive

A key feature is a "Choose Your Incentive\" framework. Investors can shape support using capital subsidy, interest subsidy, and power tariff reimbursement. The state identified 21 thrust sectors for high growth. These include green energy ecosystems, mobility, capital equipment, textiles and apparel, chemicals, healthcare, and agro-processing.

The thrust list also covers critical minerals, semiconductor ancillary industries, nuclear power equipment, and vehicle scrapping facilities. Other areas named were electronics waste recycling and textile waste recycling. The list further includes shipping containers and heavy earth-moving equipment. Sports goods, toys, footwear, robots, and drones were also included.

Gujarat industrial policy support for R&D and start-ups

For innovation, the policy offers special incentives for R&D centres. The first five R&D centres investing at least Rs 300 crore each can get up to Rs 50 crore a year. This support runs for five years. The package also includes land, patent, and operational support, as per the plan.

The government said it would set up a Gujarat Research and Innovation Park. It also plans a digital portal for easier access to testing facilities. The portal is meant to help users find R&D infrastructure. Officials said this should support research-led growth and improve access for companies and institutions.

Start-ups will receive a support framework under the policy. Eligible ventures with women co-founders can get monthly sustenance allowances of up to Rs 30,000. The policy also offers seed support of up to Rs 30 lakh. Additional incentives will apply to high-tech, fintech, biotech, and green start-ups.

Gujarat industrial policy MSMEs, mega projects and relocation plan

MSMEs remain a major focus, with more than 42 lakh units in Gujarat. Based on location and category, MSMEs can get 35-45 per cent of eligible fixed capital investment. Support will come through capital subsidy, interest subsidy, and power tariff reimbursement. The policy places MSMEs and youth at the centre.

Large industries in thrust sectors can claim 25-35 per cent incentives. Mega and ultra-mega projects can receive support of up to 40 per cent. Special thrust sectors like toys and footwear can reach 50 per cent incentives. The same enhanced level applies to sports goods, robotics, and drone manufacturing.

The policy introduces Project T.H.R.I.V.E to reduce congestion in urban areas. It encourages units to shift to planned industrial estates and parks. Relocating units will be treated as new units. They can get wage support, capital subsidies, worker housing help, and regulatory relaxations.

Gujarat industrial policy green industry and infrastructure support

Patel said the policy was prepared after consultations with industries and stakeholders. The drafting considered trends like artificial intelligence and green energy. It also noted changes in global supply chains. Patel said the approach stood on four pillars, including manufacturing, innovation, skills, and sustainability.

Green industrial development is a stated priority under the policy. Provisions encourage green industrial parks and wastewater recycling. The plan also promotes zero-liquid-discharge systems and cleaner production technologies. Circular economy practices are included. Officials said the wider strategy also supports women entrepreneurs and first-generation industrialists.

The government announced support for worker housing and working women hostels. It also listed assistance for private industrial parks, skill centres, and Industry 4.0-ready facilities. The state said Gujarat contributes 8.2 per cent to India’s GDP. It accounts for over 18 per cent of manufacturing and about 25 per cent of exports.

Officials said the policy aims to raise Gujarat’s GDP contribution to 10 per cent by 2047. The roadmap links investment targets with support for innovation, MSMEs, and sustainable industry. The government said the package combines incentives, infrastructure steps, and relocation support. The policy’s measures are designed to run over the next five years.

With inputs from PTI