The State Government of Gujarat has announced a new Industrial Policy 2020 (7 August 2020 to 7 August 2025), a copy which is enclosed for ready reference (2222021 new industrial policy of Gujarat). The new Policy factors in diverse inputs received from various sectors of business and hence is now qualitatively more investor-friendly., especially for MSMEs.
The highlights of the new Industrial Policy:
- The state’s next wave of growth will be driven by mega industrial infrastructure projects, such as the Delhi – Mumbai Industrial Corridor (DMIC), Mumbai Ahmedabad High Speed Rail, Gujarat International Financial Tech (GIFT) City, 30,000 MW Renewable Energy Target by 2022 among others.
- To support these projects, the policy introduces Reforms in regulatory mechanisms for Ease of Doing Business and has earmarked land parcels available for industrial use across the state, which may be viewed on an online portal htps://gujarat.ncog.gov.in/indextb). Additionally, the State Government will facilitate industries in getting “Government Land” on lease to industrial enterprises at 6% of market rate for long term upto 50 years.
- In light of CoVID-19, Gujarat will offer Special Relocation Incentives to industries planning to relocate their operations and/or diversify supply chains.
- Iniatives are also being taken by the state to reposition Gujarat’s MSMEs on a global level such as Capital and Interest Subsidy, Quality Certification, etc.
- The policy also further eases the process of utilizing rooftop Solar Power in MSMEs.
- Provisions are being made to accelerate and strengthen the startup ecosystem through a separate fund under GVFL for smaller ticket funding, Gujarat e-Marketplace, etc.
- Financial services, Health services, Transport & Logistics services, Audio Visual services, Construction related engineering services and Environmental services are now eligible for special incentives for service sector MSMEs.
- In line with the mission of Atmanirbhar Bharat, the state has identified 15 thrust sectors for industrial promotion which have been segregated in 2 categories: Core sectors and Sunrise sectors (new/upcoming). (Details in Table on Page 17)
- Additionally, the policy introduces incentives for greater compliance with environmental standards & supports development of latest sustainable industrial infrastructure to reduce air and water pollution.
- To promote Skill enhancement, the State Government intends to introduce industry-specific short term/ long term/ modular courses in the existing ITIs, Polytechnic and Engineering colleges with active participation of the user industry.
