1. Infrastructure Development
   • Development of industrial infrastructure including roads, warehousing facilities, fire stations, underground utilities, and more at 80% of the project cost up to INR 25 crore.
   • Encouragement of private investors to establish industrial parks with incremental support for parks in Vanbandhu Talukas.
2. Support for MSMEs
   • Focused schemes to strengthen MSMEs with capital and interest subsidies based on taluka categories.
   • Promotion of rooftop solar power, startup innovation, and technology adoption.
3. Skill Enhancement and Export Promotion
   • Expansion of skill base through industry-specific training programs.
   • Support for participation in national and international exhibitions, robust grievance redressal mechanisms, and seamless logistics infrastructure.
4. Sustainable Development Initiatives
   • Incentives for environmental compliance and development of sustainable infrastructure such as common effluent treatment plants and waste management systems.
5. Incentives for Large Investments
   • Incentives based on eligible fixed capital investment (FCI) for large industries to set up manufacturing operations in Gujarat, promoting transparency and predictability in incentive calculation.
6. Promotion of Thrust Sectors
   • Identification of core and sunrise sectors for industrial promotion, with specific incentives and provisions for creating an enabling ecosystem for their establishment in the state.

This policy aims to position Gujarat as a leader in industrial development by fostering a conducive environment for business, promoting innovation, and ensuring sustainable and inclusive growth.

Capital and Interest Subsidy for MSMEs

MSMEs will receive Capital and Interest Subsidy on term loans based on the category of talukas. Under the revised MSME definition by the Government of India, enterprises with up to INR 50 crore investment in Plant & Machinery and turnover up to INR 250 crore are classified as Medium Enterprises. Additional incentives will be provided to these Medium Enterprises to support their growth and expansion.

Fiscal Incentives to Labour Intensive Unit

Capital and Interest Subsidy for MSMEs

Additional Incentives

•         1% additional interest subsidy for SC/ST entrepreneurs, physically challenged entrepreneurs, women entrepreneurs, and startups in the manufacturing sector.
•         1% additional interest subsidy for young entrepreneurs (below 35 years) on the loan sanction date.
•         Maximum interest subsidy capped at 9% for all categories.
•         Minimum 2% of total interest on term loan must be borne by the unit.
•         Existing units switching to Solar Power will receive Interest Subsidy as per the specified rates.

ICT Adoption, Technology Upgradation, and Patent Support for MSMEs

1. ICT Adoption Support
   
   
   • ERP System: Financial assistance up to 65% of capital cost, capped at ₹1 lakh, for implementing ERP from an approved service provider.
   • ICT Facilities: Assistance up to 65% of capital cost, capped at ₹5 lakhs, for adopting ICT platforms and facilities.
2. Technology Upgradation & Acquisition Support
   
   
   • Assistance up to 65% of the cost, capped at ₹50 lakhs, for acquiring new technologies from recognized institutions or patented technologies from foreign companies.
3. Patent Support
   
   
   • Reimbursement of up to 75% of costs, capped at ₹25 lakhs, for filing domestic and international patents.
   • Attorney fees covered:
     • National patent: Up to ₹50,000
     • International patent: Up to ₹2,00,000

Exhibition Participation & Organization Incentives

Key Incentives & Support for MSMEs

1. Raising Capital through SME Exchange
   
   
   • One-time assistance of 25% of expenditure, up to ₹5 lakhs, for raising equity capital.
2. MSME Awards
   
   
   • Recognition for excellence in growth, quality, environment improvement, and innovation.
3. Energy & Water Conservation
   
   
   • 75% assistance on energy/water audit costs, up to ₹50,000.
   • 25% assistance on equipment recommended in audits, up to ₹20 lakhs.
4. Collateral-Free Loans
   
   
   • Assistance under CGTMSE scheme for MSMEs.
5. Service Line & Power Connection Charges
   
   
   • 35% reimbursement of service line/power connection charges, up to ₹5 lakhs.
6. Promotion of Women, SC/ST, Physically Challenged Entrepreneurs & Startups
   
   
   • Additional incentives under Bharatratna Dr. Babasaheb Ambedkar Udyog Uday Yojna.
7. Rooftop Solar Power for MSMEs
   
   
   • Extended power cycle calculation from 15 min to 11 hours (7 AM – 6 PM).
   • Increased surplus power purchase price from ₹1.75/unit to ₹2.25/unit.
8. Startup & Innovation Support
   
   
   • Sustenance Allowance: ₹20,000/month for startups; ₹25,000 for those with at least one woman co-founder.
   • Seed Support: Up to ₹30 lakhs for product development; additional ₹10 lakhs for social impact startups.
   • Soft Skills Training: Up to ₹1 lakh per startup.
   • Pre-Series A Funding: Fund created under GVFL for investments between ₹50 lakhs – ₹3 crore.
   • Acceleration Programs: Support up to ₹3 lakhs for participation in national/international programs.
   • Promotional Events: Up to 75% (₹5 lakhs); 90% for women entrepreneurship events.
   • Mentoring Assistance: ₹1 lakh per startup to nodal institutes (max ₹15 lakhs per year).
   • Dedicated portal for startup resources, co-working spaces, and Gujarat e-marketplace.
9. Research & Development Support
   
   
   • 30% assistance (up to ₹5 crore) for setting up R&D centers in private institutions/companies.
   • 60% assistance for laboratories set up by industry associations.
   • 50% assistance (up to ₹50 lakhs) for contract research projects with recognized institutions.

Special Focus on Promotion of Service Sector MSMEs

The service sector is a key contributor to the national GDP and plays a vital role in supporting primary and secondary industries. With SEZs, IT parks, and GIFT City, Gujarat provides a strong ecosystem for service sector expansion.

To boost service sector MSMEs, the government has expanded the scope of incentives beyond the 22 service categories listed in the Gujarat Industrial Policy 2015. The following “Champion Services” are now eligible for incentives:

1. Financial Services
2. Health Services
3. Transport & Logistics Services
4. Audio-Visual Services
5. Construction-Related Engineering Services
6. Environmental Services

Additional Benefits:

•         1% additional subsidy for SC/ST entrepreneurs.
•         The unit must bear a minimum of 2% of the total interest levied on the term loan.

To align with the Atmanirbhar Bharat mission, Gujarat has identified 15 thrust sectors for industrial promotion. These are divided into:

1. Core Sectors – Sectors where Gujarat already holds a leadership position and aims to strengthen global competitiveness.
2. Sunrise Sectors – Emerging and niche sectors with high potential, supported by incentives to establish Gujarat as a preferred destination.

Core Sectors:

1. Electrical machinery & equipment
2. Industrial machinery & equipment
3. Auto & auto components
4. Ceramics
5. Technical textiles
6. Agro & food processing
7. Pharmaceuticals & medical devices
8. Gems & jewelry
9. Chemicals (in designated areas)

Sunrise Sectors:

1. Industry 4.0 manufacturing
2. Electric vehicle & components
3. Waste management projects
4. Green energy (solar & wind equipment)
5. Eco-friendly compostable materials (plastic substitutes)
6. 100% export-oriented units (irrespective of sector)