The Gujarat government on Monday unveiled the Viksit Gujarat Industrial Policy-2026, a five-year industrial roadmap designed to attract investments worth approximately INR 10 lakh crore while promoting advanced manufacturing, innovation and entrepreneurship. The policy was announced by Chief Minister Bhupendra Patel at the Mahatma Mandir Convention Centre in Gandhinagar and aims to accelerate the state's journey towards becoming a USD 3.5 trillion economy by 2047. 
The policy provides incentives ranging from 15 per cent to 50 per cent across various sectors and has been formulated following consultations with industry stakeholders while considering emerging trends such as artificial intelligence, green energy and the reconfiguration of global supply chains. According to the state government, the framework is built on four pillars: investment and manufacturing, innovation and research, skill development and employment, and sustainability and inclusive growth. 
Chief Secretary M K Das said the government expects the policy to attract investments of around INR 10 lakh crore during its five-year tenure, further strengthening Gujarat's position as one of India's leading industrial hubs. The Chief Minister described the policy as a comprehensive development document aligned with the vision of "Viksit Gujarat to Viksit Bharat 2047". 
A key feature of the policy is the introduction of a "Choose Your Incentive" framework, allowing investors to customise their support package by selecting a combination of capital subsidy, interest subsidy and power tariff reimbursement based on project requirements. Industries will generally be eligible for incentives ranging from 15 per cent to 45 per cent, while selected sectors can receive support of up to 50 per cent. 
The government has identified 21 high-growth thrust sectors under the policy, including green energy ecosystems, mobility, capital equipment, textiles and apparel, sustainability, chemicals, agro-processing, healthcare, critical minerals, semiconductor ancillary industries, nuclear power equipment and vehicle scrapping facilities. Additional focus sectors include electronics waste recycling, textile waste recycling, shipping containers, heavy earth-moving equipment, sports goods, toys, footwear, robotics and drones. 
To strengthen innovation, the policy offers dedicated incentives for research and development centres. The first five R&D centres investing at least INR 300 crore each will be eligible for capital support of up to INR 50 crore annually for five years, along with land, patent and operational assistance. The state also plans to establish a Gujarat Research and Innovation Park and develop a digital portal to facilitate access to testing and R&D infrastructure. 
The policy includes a support framework for start-ups, providing monthly sustenance allowances of up to INR 30,000 for eligible ventures with women co-founders, seed funding of up to INR 30 lakh and additional incentives for high-tech, fintech, biotech and green start-ups. MSMEs, which account for more than 42 lakh units in Gujarat, will be eligible for incentives amounting to 35-45 per cent of eligible fixed capital investment depending on location and category. Large industries in thrust sectors can receive incentives ranging from 25-35 per cent, while mega and ultra-mega projects may obtain support of up to 40 per cent. Special thrust sectors such as toys, footwear, sports goods, robotics and drone manufacturing will qualify for enhanced incentives of up to 50 per cent. 
The policy also introduces Project T.H.R.I.V.E, an initiative aimed at decongesting urban areas by encouraging industries to relocate to planned industrial estates and parks. Relocating units will be treated as new units and will receive wage support, capital subsidies, worker housing assistance and regulatory relaxations. Additionally, the government has announced support for worker housing, working women hostels, private industrial parks, skill centres and Industry 4.0-ready infrastructure. According to the state government, Gujarat currently contributes 8.2 per cent to India's GDP, accounts for over 18 per cent of manufacturing output and around 25 per cent of exports, with the objective of increasing its GDP contribution to 10 per cent by 2047. 
Source - PTI