Understanding the Gujarat Industrial Policy, 2020 (Part-1/4): Key features and incentives
Gujarat’s Performance So Far
- 1st Rank in Export Competitiveness Index 2020 by NITI Aayog
- 1st Rank in Water Management per NITI Aayog in the last two years
- Ranked “Best Performing State” by DPIIT in the National Startup Ranking for 2018
- 1st Rank in Logistics Performance Index and LEADS Index in 2019
- 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
- Gujarat is the first state to undertake a bold decision to de-link incentives from SGST
- Talukas have been categorized into three categories: Category 1 (backward), Category 2 (developing) and Category 3 (mature)
- Thrust sectors have been identified and enhanced incentives have been announced for them
- Gujarat government to offer relocation incentives to companies trying to move from other geographies on a case to case basis
- Gujarat government to lease out government land for long term – upto 50 years – to industrial enterprises at 6% market rate
- Government to support private entities setting up R&D Centres for upto 30% of the project cost of equipment cost upto INR 5 Crore
- 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.
- Many service sectors included under the scope of the policy as well as support to startups announced
- Exempts new companies for a period of 1000 days from all labor laws in the state
- Provides access to 160+ applications of 16 departments under one platform. Over 5 Lakh applications received so far.
- Fully digitized and GIS-based land map available at gujarat.ncog.gov.in.
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:
Team Gujarat @InvestIndia