Gujarat unveils Industrial Policy 2026, targets ₹10 lakh crore investment in five years

Gandhinagar: Gujarat governement unveiled its much-awaited Viksit Gujarat Industrial Policy 2026 on Monday, 15 June. The policy was launched by chief minister Bhupendra Patel in the presence of deputy chief minister Harsh Sanghavi, and other minister at Mahatma Mandir in Gandhinagar.

The new policy aims at taking a quantum leap in attracting domestic and global investment through an enabling, pedictable and future-ready business environment. Positioning Gujarat as global R&D hub, is among top priorities in the new policy.

The policy aims to attract investments worth ₹10 Lakh crore in next five years, officials said.

“Gujarat has always been at the forefront of India’s industrial growth. With this policy, we are taking a decisive step towards building globally competitive industries, attracting next-generation investments, and strengthening our integration with global value chains,” Chief Minister Patel said on the occasion.

‘Viksit Gujarat se Viksit Bharat@2047’

Driven by the aim of Viksit Gujarat se Viksit Bharat@2047, the Viksit Gujarat Industrial Policy 2026 consists of several initiatives and industry-friendly incentives that are set to accelerate development and growth in the state, a government statement said.

“It is anchored in the vision of “Living Well” and “Earning Well,” aiming to empower enterprises while creating high-quality employment opportunities for the youth. The vision of Aatmanirbhar Bharat further guides this policy to create impetus for strengthening domestic capabilities while reducing reliance on imports.” read the statement.

The goal of Viksit Gujarat 2047 with a $3.5 Trillion economy, necessitates the reimagination of regional ecoomic planning in the state, where each region, district and taluka actively contribute to this objective, the policy document reads.

“To position Gujarat as a globally competitive, innovation-driven and sustainable industrial powerhouse with focus on value addition, advanced manufacturing ad deeper value chains, thereby contributing effectively to the realisation of Viksit Gujarat se Viksit Bharat @2047,” it reads.

Decongest cities and enhance urban livability

The policy shall be valid for a period of five years starting from 1 June, 2026.

The policy introduces enhanced flexibility by allowing large and mega units to choose an optimal mix of capital subsidy, interest subsidy and power tariff assistance in line with their project structures and financial viability.

“Large Units in Thrust Sectors will have the option to choose a combination of capital subsidy, interest subsidy and power tariff, subject to maximum incentive ceiling of 25% of eFCI and 35% of eFCI for Category B and Category A Talukas respectively,” it reads.

The new policy has revised definition of MSMEs as per the recent amendments by the Government of India. MSMEs will have the option to choose a combination of capital subsidy, interest subsidy and power tariff, subject to maximum incentive ceiling of 35% of eFCI and 45% of eFCI for Category B and Category A Talukas respectively, the policy reads.

“With a strong emphasis on R&D, emerging technologies, and innovation-led growth, this Policy will enable Gujarat to lead India’s transition into a knowledge-driven and technology-intensive economy,” deputy chief minister Harsh Sanghavi said.

To promote sectors with high employment and strategic value, the industrial policy provides special incentive provisions for priority industries such as Sports Goods And Equipment, Toys, Footwear, Robot and Drones, along with any other sectors as may be notified from time to time.

Gujarat at a Glance

Over the past two decades, Gujarat’s GDP has grown 20 times, demonstrating a strong and consistent growth trajectory.

“This sustained growth reflects rapid, large-scale industrial dePatelvelopment anchored in a clear long-term vision, stable governance and an investor-friendly approach – a legacy set by the Prime Minister of India Shri Narendra Modi during his tenure as the Chief Minister of Gujarat,” said the government statement.

Carrying forward this legacy, Gujarat, under the leadership of Chief Minister of Gujarat Bhupendra Patel, has grown multifold to$ 329.70.10 Billion, notably contributing 8.2% of India’s GDP, it said.