Industrial policy 2026: Gujarat announces sweeping incentives for industry and startups

The Gujarat government has unveiled its proposed Industrial Policy 2026, introducing a wide range of incentives aimed at boosting manufacturing, attracting global investments, promoting startups, supporting women entrepreneurs, strengthening R&D, and encouraging sustainable industrial growth.

Bigger incentives for MSMEs

Under the revised policy, MSMEs will be allowed to choose a combination of capital subsidy, interest subsidy and power tariff assistance.

Category-A talukas: Incentives up to 45% of eligible fixed capital investment (eFCI).

Category-B talukas: Incentives up to 35% of eFCI.

SC and ST entrepreneurs will receive an additional 5% incentive ceiling under special schemes.

Enhanced support for large and mega industries

Large, Mega and Ultra-Mega units can opt for a mix of capital subsidy, interest subsidy and power tariff benefits.

Large units can avail incentives up to 20% of eFCI in general sectors.

Mega units can receive up to 35% of eFCI.

Ultra-Mega units can receive up to 40% of eFCI.

Thrust sectors such as electronics, semiconductors, robotics, aerospace and defence receive additional benefits.

Startup ecosystem gets a boost

The policy proposes expanded support for startups through:

Monthly sustenance allowance of ₹25,000 for one year.

₹30,000 per month for startups with women co-founders.

Additional support for fintech, biotech, green-tech and high-tech startups.

Seed funding up to ₹40 lakh for high-impact ventures.

Additional 1% interest subsidy on term loans.

Focus on women entrepreneurs

Special provisions include:

Additional 1% interest subsidy.

Rental assistance of up to ₹3 lakh annually for five years.

Dedicated return-to-work programmes for women after career breaks.

Enhanced support for women-led startups.

Gujarat aims to become a global R&D hub

To attract domestic and international research centres, the policy offers:

Capital subsidy of up to 50% for select R&D centres.

Payroll support of ₹10,000 per employee per month for three years.

Patent filing reimbursements.

Development of a Gujarat Research & Innovation Park.

Incentives for NABL-certified testing laboratories.

Workforce housing and skill development

The policy proposes support for:

Working women’s hostels.

Labour and worker dormitories near industrial hubs.

Industry-linked skill development centres.

Anchor institutions for workforce training.

Push for green manufacturing

Industries investing in sustainable technologies can avail:

Up to ₹75 crore support for wastewater recycling projects.

Assistance for Zero Liquid Discharge (ZLD) systems.

Support for cleaner production technologies.

Incentives for common boiler and environmental infrastructure projects.

Private industrial parks encouraged

Developers of industrial parks can receive:

Up to 80% support for priority projects.

Assistance for green industrial parks.

Incentives for industrial infrastructure upgrades.

Project THRIVE for relocation of industries

The government has proposed Project THRIVE (Transition for Harmonized Relocation and Inclusive Vibrant Economy) to encourage industries operating within congested urban areas to relocate outside city limits.