The policy promises an average annual outlay of Rs 8,000 crore for industries.
Credit: Reuters File Photo
Ahmedabad: The Gujarat government's industrial policy, launched in August 2020 with an aim to provide Rs 40,000 crore in subsidies to industries over five years, is a reflection of its commitment to make the state a global business destination, stakeholders have said.
The policy, valid for a period of five years since its launch, promises an average annual outlay of Rs 8,000 crore, indicating substantial support for industries, they said ahead of the 10th edition of the Vibrant Gujarat Global Summit to be held from January 10-12, 2024, in Gandhinagar.
The summit is a forum for business networking, knowledge sharing and strategic partnerships for inclusive growth and sustainable development.
The state's industrial policy has been well on target to achieve its mission to promote entrepreneurship and innovation by inclusive and balanced regional development, world-class infrastructure, and initiatives aimed at easing the business environment and export competitiveness.
This is a reflection of the government's commitment to make the state a global business destination for sustainable manufacturing and services industry and contribute to the vision of an 'Aatmanirbhar Bharat' (self-reliant India), according to the stakeholders.
Gujarat Industrial Development Corporation (GIDC) Managing Director Rahul Gupta said the new industrial policy will provide a favorable environment for industrial growth and development in the state.
"If you look at the component of incentives, then you will find that those offered under the new policy are manifold, in the sense that importance has been given to value addition...because incentives are given by way of net GST reimbursement, more value addition takes place within the state," he said.
In a push for 'Aatmanirbhar Gujarat', the policy supports Ministry of Micro, Small and Medium Enterprises (MSMEs) by funding up to 65% of the cost of acquiring foreign patented technologies, emphasising on self-reliance and innovation, officials said.
The policy also provides incentives for private industrial parks, offering 25% of the fixed capital investment, which is enhanced to 50% for industrial parks in tribal talukas, they said.
Gujarat Chamber of Commerce and Industry Vice President Sandeep Engineer credited Prime Minister Narendra Modi's long-term vision for the growth of the state as an industrial hub.
"PM Modi was our honourable Chief Minister. So, he started the story of the development of Gujarat. His initiatives have helped to simplify the way businesses are done and approvals are given," he said.
"You can say he (PM Modi) created many regions where you can come and set up industries, he created a Gujarat International Finance Tec-City (GIFT City) which can develop the economy and future of Gujarat," Engineer said.
As the state welcomes new opportunities and embraces global changes, Gujarat remains a beacon of progress, fueled by a strategic and forward-looking industrial policy reflecting a state's commitment to world-class infrastructure, competitive fiscal incentives, ease of doing business, among others, officials said.
The state has undertaken various measures to enhance the experience of ease of doing business for the existing and prospective enterprises through the Gujarat MSME (Facilitation of Establishment and Operation) Act, 2019, the Gujarat Single Window Clearance Act, 2017, and by strengthening the Investor Facilitation Agency.
There has been a focused approach for balanced regional development as an important growth agenda of the government, to be achieved by promoting industries in lesser developed areas for industrial employment, reduction of disparity in per capita income across regions and preventing concentration of industries in a few centres or cities, they said.