₹10 lakh crore investment target, startup sops, mega projects: Inside Gujarat’s new Industrial Policy 2026

Gandhinagar, Gujarat: In what is being seen as a step towards accelerating Gujarat’s journey to becoming a $3.5 trillion economy by 2047, the Government of Gujarat on Monday unveiled the Viksit Gujarat Industrial Policy 2026.

The policy is being billed as a future-focused and transformational industrial framework designed to position the state as a global powerhouse for advanced manufacturing, innovation and sustainable growth.

Officials aid that policy outlines Gujarat’s ambition to lead India’s next phase of industrial transformation by enabling globally competitive industries, fostering high-value investments, and creating quality employment opportunities at scale.

Driven by the aim of Viksit Gujarat se Viksit Bharat@2047, the Viksit Gujarat Industrial Policy 2026 consists of a number of initiatives and industry-friendly incentives that are set to accelerate development and growth in the state, a government statement said.

Officials told LiveMint on the sidelines of policy launch that the policy eyes attracting ₹10 Lakh crore worth of investments to Gujarat in the next five years.

Support for Startups

-Sustenance Allowance: ₹25,000 per month for a year and ₹30,000 per month for start ups with a woman co-founder.

-Seed Support: Up to ₹30 lakh & ₹40 lakh for high-impact startups.

-Additional ₹10 lakh for high-tech, fintech, disruptive or green startups.

–Interest Subsidy: Additional 1% on term loans

Promoting Women Entrepreneurship

Rental assistance to Women Entrepreneurs: 75% of rent paid up to ₹3 Lakhs p.a for 5 years

Enhanced assistance to women -led startups:*Sustenance allowance of ₹30,000/Month for startups with women co-founder for 1-2 years.

Positioning Gujarat as Global R&D Hub

CAPEX Support: Building, machinery, equipment: 50 per cent Capital Subsidy (building cost capped at 20% of total investment) in 5 years up to ₹50 cr. p.a.

Land: Reimbursement of 25 per cent of allotment price (GIDC/Dholera/Govt. Land) or 25% of Jantri Rate in case of private land.

Payroll Subsidy: ₹10,000 per person per month for 3 years 75% of cost up to ₹15 Lakhs per patent per Centre for total of 25 patents over a period of 10 years

Industrial Infrastructure for Competitive Growth

Prioritise the development of robust, future-ready industrial infrastructure with a strong focus on productivity, worker welfare and sustainability. Enhanced Incentives for development of priority projects, development of private industrial parks as well as development of Green Industrial Parks/Estates.

Incentive Details: 80% of the eligible project cost up to ₹40 Cr.

Other Activities & Upgradation works: 60% of the eligible project cost up to ₹40 Crore.

Development of private industrial park: 25% up to INR 50 Cr (50% up to ₹50 Cr for Vanbandhu Taluka).

Large and Mega Investments

The policy formally introduces an ‘ultra-mega’ industry category for projects with a minimum investment of ₹10,000 crore and the ability to employ at least 3,000 people.

The policy introduces enhanced flexibility by allowing large and mega units to choose an optimal mix of capital subsidy, interest subsidy and power tariff assistance in line with their project structures and financial viability.

Large units in thrust sectors will have the option to choose a combination of capital subsidy, interest subsidy and power tariff, subject to maximum incentive ceiling of 25% of eFCI and 35% of eFCI for Category B and Category A Talukas respectively.

Nudging MSMEs to Go Global

Revised definition of MSMEs as per the recent amendments by the Government of India.

MSMEs will have the option to choose a combination of capital subsidy, interest subsidy and power tariff, subject to a maximum incentive ceiling of 35% of eFCI and 45% of eFCI for Category B and Category A Talukas respectively.