August 7, 2020
A 12% Fixed capital investment can be provided by the State to entities looking to set up factories.
The State is to take up upskilling, export promotion and technology identification to empower MSMEs for the long term.
Rural infrastructure is to be modified to introduce manufacturing as part of the local ecosystem.
A single window clearance system has been introduced to expedite approvals.
Chief Minister Vijay Rupani announced the new Gujarat Industrial Policy 2020 with a focus on the development of MSMEs, the manufacturing and technology sectors. With a budget of US$ 1.95mn , the policy is to focus on fifteen sectors which have been divided into Core Sectors of Gujarat’s expertise and Sunrise Sectors. The policy allows for the State to provide a 12% fixed capital investment to entities seeking to establish factories, and a 7% subsidy to MSMEs in sectors including Construction Engineering, Healthcare and Finance. With a focus on elevating MSMEs to global standards, the State Government will prepare the ground for long term growth, upskilling, export promotion and utilisation of the right kind of technology. As a manufacturing powerhouse, the State of Gujarat can expect to see overall development as the policy aims to expand the scope of manufacturing prowess to rural regions. The introduction of a single window clearance system can help expedite requisite approvals.
Gujarat as a State is anchored in it’s manufacturing, infrastructural and public policy prowess. The Confederation of Indian Industry (CII) observes that Gujarat was among the first states to set up industrial parks for the growth of businesses. The industrial expertise of the State has manifested across domains including chemical, machinery, textiles, minerals, food and food processing, energy and plastic. The 1985-1995 period saw the dominance of the chemicals industry and the positive performance of the energy, food, machinery and energy industries. The changes ushered in by the post-liberalisation years marked a rise in the quantum of investment in MSMEs. From an export point of view, the State is at an advantageous position owing to the presence of 49 sea ports in total and access to Middle-Eastern, Western and African markets. With the latest iteration of the Industrial Policy and the State’s vibrant industrial prowess, Gujarat can expect to continue its journey towards growth.