Gujarat Budget Bets on Fintech, Semiconductors, and Space

In a significant financial announcement, the Gujarat government has unveiled a budget of ₹3.32 lakh crore for the fiscal year 2024-25, showcasing ambitious plans for various sectors. Among the key highlights are the establishment of a Fintech Hub at GIFT City, a Semiconductor School in Sanand, and a manufacturing hub for the space sector.

Presenting a surplus budget of ₹146 crore, a 10.44 percent increase from the current fiscal year, Finance Minister Kanu Desai highlighted Gujarat's robust economic growth, contributing 8.2 percent to the national GDP, a notable increase from 5.1 percent in 2000-01.

The budget allocates ₹52 crore for the creation of a Fintech hub at GIFT City and an additional ₹100 crore for the development of the Sabarmati Riverfront, aiming to extend it to 38.2 kilometers in five phases, envisioned as the "longest and most scenic riverfront in the world."

Collaborating with Micron Technology, the state government plans to establish a semiconductor school at Sanand, allocating ₹33 crore for this purpose. The semiconductor and electronics policies also earmark ₹1,049 crore to support industries entering the state in this sector.

Gujarat strategically plans to set up a phased "manufacturing hub" at Khoraj near Ahmedabad, focusing on the space sector, with ₹60 crore allocated to attract space manufacturing companies through the new Space Tech policy.

To bolster the logistics sector, the government will double the shipbreaking yard's recycling capacity at Alang and allocate ₹100 crore for the development of Gatishakti Cargo Terminal at Rafaleshwar and Juna Bedi port. An additional ₹25 crore has been designated for infrastructure development in the aviation sector.

The textile industry is poised for growth with a provision of ₹1,600 crore under the textile policy, while ₹1,550 crore is allocated for MSME development, and an extra ₹1,145 crore for large industries. A notable environmental initiative includes ₹440 crore for installing a deep-sea pipeline to manage treated wastewater from industrial estates.

Addressing urbanization, the finance minister proposed converting seven municipalities into Municipal Corporations, bringing the total number to 15. Additionally, a single emergency number, 112, will be introduced to provide centralized fire, police, and emergency services.

Notably, the budget introduces no new taxes for the fiscal year 2024-25. Furthermore, the government has announced a year-long "amnesty scheme," waiving all liabilities for Motor Vehicles Tax, interest, penalty, and challans for vehicles over eight years old, providing a tax relief of Rs 700 crore for approximately 52,000 vehicle owners.

In a commitment to fiscal reforms, stamp duty of around ₹54 crore for nine lakh members of registered cooperative credit societies availing loans up to ₹50,000 will be waived off, demonstrating the government's dedication to financial flexibility and support.

News by Rahul Yelligetti