Gujarat’s new IT-ITeS policy to create 1 lakh jobs in 5 years

The new policy is expected to make the state the preferred destination in the IT ecosystem

February 10, 2022

Gujarat’s new IT & ITeS policy is focused on creating a highly skilled, industry-ready IT talent pool and IT infrastructure

The policy outlines CAPEX support of 25% up to INR 50 crore for normal projects and INR 200 crore for mega projects

The policy would also ensure financial support up to INR 50,000 per person through DBT to graduates and working professionals for skill development

It also incentivises the development of IT cities/townships with CAPEX support up to INR 100 crore and relaxations in regulatory & FCI norms

The Gujarat government rolled out its new Information Technology & Information Technology-enabled Services (IT & ITeS) policy, 2022-2027 to increase exports from the existing INR 3,000 crore to INR 25,000 crore in the information technology (IT) sector.

The new IT & ITeS policy is expected to transform the state’s IT landscape and create 1 lakh IT-related jobs in the next five years. This will make Gujarat a choice destination in the IT ecosystem. It is focused on creating a highly-skilled, industry-ready IT talent pool and IT infrastructure. The policy would also develop a simplified incentive scheme, establish a robust cloud ecosystem, and foster research & development in new and emerging technologies.

Utilizing a unique CAPEX-OPEX model, which is a first-of-its-kind in the country, the policy outlines CAPEX support of 25% up to INR 50 crore for normal projects and INR 200 crore for mega projects. Under the OPEX model, the government will support 15% up to INR 20 crore annually for normal projects and INR 40 crore or mega projects. In addition, the policy would also ensure financial support up to INR 50,000 per person through direct benefit transfer (DBT) to graduates and working professionals for skill development.

Also, large-scale information, education & communication (IEC) programmes targeting schoolchildren and the general populace to improve digital literacy will fall under the purview of the policy. The new IT & ITeS policy also incentivises the development of IT cities/townships with CAPEX support up to INR 100 crore and relaxations in regulatory & FCI norms.

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