Gujarat industrial policy

Gujarat’s Performance So Far

  1. 1st Rank in Export Competitiveness Index 2020 by NITI Aayog 
  2. 1st Rank in Water Management per NITI Aayog in the last two years 
  3. Ranked “Best Performing State” by DPIIT in the National Startup Ranking for 2018 
  4. 1st Rank in Logistics Performance Index and LEADS Index in 2019 
  5. In FY 2019-20, Gujarat saw the highest national increment of 240% in FDI inflows from previous year as against a growth of 14% in FDI in India


Key Features of the Gujarat Industrial Policy 2020 

  1. Gujarat is the first state to undertake a bold decision to de-link incentives from SGST
  2. Talukas have been categorized into three categories: Category 1 (backward), Category 2 (developing) and Category 3 (mature)
  3. Thrust sectors have been identified and enhanced incentives have been announced for them
  4. Gujarat government to offer relocation incentives to companies trying to move from other geographies on a case to case basis 
  5. Gujarat government to lease out government land for long term – upto 50 years – to industrial enterprises at 6% market rate 
  6. Government to support private entities setting up R&D Centres for upto 30% of the project cost of equipment cost upto INR 5 Crore
  7. MSME definition modified and extra incentives and subsidies announced to provide a boost them. The policy now exempts all MSMEs from obtaining approvals for a period of 3 years & start operations immediately.
  8. Many service sectors included under the scope of the policy as well as support to startups announced 
  9. Exempts new companies for a period of 1000 days from all labor laws in the state
  10. Provides access to 160+ applications of 16 departments under one platform. Over 5 Lakh applications received so far.
  11. Fully digitized and GIS-based land map available at  

Gujarat’s new industrial policy can be found here: Gujarat Industrial Policy 2020

For more information on Gujarat’s new industrial policy, please reach out to: 

Drushti Joshi

Team Gujarat @InvestIndia

Read Part 2: Capital subsidies to large investments here
Read Part 3: Subsidies and incentives for MSMEs and Startups here
Read Part 4: Industrial infrastructure in Gujarat here