Gujarat's New Industrial Policy: 5 Years, ₹10 Lakh Crore

The Gujarat government has launched the Viksit Gujarat Industrial Policy 2026, setting an ambitious target of attracting ₹10 lakh crore in investments over the next five years while reinforcing the state’s position as a premier destination for manufacturing, research, innovation, and industrial development.

Unveiled by Chief Minister Bhupendra Patel in Gandhinagar, the policy introduces a comprehensive incentive framework designed to support industries, startups, MSMEs, research and development (R&D) centres, and skilled manufacturing projects. The initiative forms a key part of Gujarat’s long-term vision of evolving into a USD 3.5 trillion economy by 2047.

One of the policy’s key features is the “Choose Your Incentive” model, which allows investors to tailor government support based on their specific requirements through a combination of capital subsidies, interest subsidies, and power tariff reimbursements. The flexible framework is intended to enhance investment attractiveness and improve ease of doing business in the state.

The policy identifies 21 high-potential sectors for focused development, including green energy, advanced manufacturing, robotics, drones, healthcare, mobility solutions, agro-processing, critical minerals, and semiconductor-related industries. To strengthen the innovation ecosystem, the government will also provide substantial incentives for large R&D centres and establish a Gujarat Research and Innovation Park equipped with shared testing, prototyping, and technology development facilities.

In addition, the policy expands support for startups through enhanced financial assistance, incubation benefits, and entrepreneurship-focused incentives. Eligible startups will be able to access monthly sustenance support, while women-led enterprises and ventures operating in high-growth sectors such as fintech, biotechnology, deep technology, and green innovation will receive additional incentives.

Through the new policy framework, Gujarat aims to accelerate industrial growth, attract high-value investments, foster innovation-led development, generate employment opportunities, and strengthen its competitiveness across emerging industries that are expected to drive the next phase of economic growth.

News by Rahul Yelligetti.