Gujarat has launched the Viksit Gujarat Industrial Policy 2026, aiming to attract ₹10 lakh crore in investments over the next five years. The policy, effective from June 1, 2026, focuses on advanced manufacturing, innovation, and strong support for startups and MSMEs.
The policy introduces flexible incentives, allowing large, mega, and ultra-mega units to choose from a mix of capital, interest, and power subsidies based on their project needs. Incentives range from 15% to 45% of eligible fixed capital investment, with priority sectors like semiconductors, robotics, drones, toys, and sports goods eligible for up to 50%.
For startups, the policy offers a monthly sustenance allowance of ₹25,000 for one year, increased to ₹30,000 for women-led startups. Additional benefits include seed funding up to ₹40 lakh, an extra 1% interest subsidy on term loans, and special support for fintech, biotech, and green-tech ventures.
The policy also introduces an “ultra-mega” category for projects worth ₹10,000 crore or more, generating over 3,000 jobs. MSMEs can receive 35-45% incentives, while mega and ultra-mega projects can get up to 40% support.
Gujarat aims to raise its GDP contribution to 10% by 2047 and position itself as a global hub for semiconductors, clean energy, and advanced manufacturing. The policy is valid for five years and is expected to disburse around ₹2.5 lakh crore in incentives over 15 years.
FAQs [Frequently Asked Questions]
Q1: What is the investment target of Gujarat’s Industrial Policy 2026?
A: The policy aims to attract ₹10 lakh crore in investments over five years, focusing on advanced manufacturing, innovation, and startups.
Q2: What incentives are available for startups under the new policy?
A: Startups get ₹25,000 monthly allowance (₹30,000 for women-led), seed funding up to ₹40 lakh, and an additional 1% interest subsidy on term loans.
Q3: What is the “ultra-mega” project category?
A: Ultra-mega projects are investments of ₹10,000 crore or more, generating 3,000+ jobs, eligible for up to 40% incentives in thrust sectors.