Industrial and sector policies · Government of Gujarat

Sector incentives in Gujarat: textiles, pharma, electronics, IT and more

Beyond the general VGIP 2026 schemes — and the Aatmanirbhar Gujarat Scheme that some projects can still choose — Gujarat runs dedicated policies for textiles, electronics and semiconductors, IT and global capability centres, data centres and biotechnology, and pays thrust-sector rates to large chemical and pharma units. Each has its own GR, eligibility and deadline; we match your project to the one that pays most.

20+ years in Gujarat incentives300+ projects99% filing success

Six of the headline figures on this page: VGIP 2026 support for patents, technology and rent; the Textile Policy’s capital subsidy; the Data Center Policy’s power support; the Biotech Policy’s capital support.

  • 35%capital subsidy for garment units, up to ₹100 crore
  • 75%of patent costs for MSMEs, up to ₹25 lakh
  • 65%of factory rent for MSEs, up to ₹3 lakh a year
On this page
  1. How it works
  2. Industrial policy
  3. Textiles
  4. Chemicals and pharma
  5. Electronics
  6. IT and GCCs
  7. Data centres
  8. Biotechnology
  9. R&D and patents
  10. Rent assistance
  11. Worked examples
  12. Logistics
  13. Our process
  14. Pitfalls
  15. FAQ
  16. Sources
The basics

How industrial and sector incentives work in Gujarat

Gujarat’s general scheme — the Viksit Gujarat Industrial Policy 2026 — pays capital, interest and power subsidy to manufacturers, with higher rates for thrust sectors; units that started production before June 2026 stay on the Aatmanirbhar Gujarat Scheme of 2022. Alongside sit sector policies with their own GRs and agencies: textiles under the Industries and Mines Department; electronics, semiconductors, IT, GCCs and data centres under the Department of Science and Technology; biotechnology under the Gujarat State Biotechnology Mission. Most of them cannot be combined for the same project unless a GR says so, so the choice of policy is the first decision.

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Where each policy standsStatus checked against the GRs on 6 October 2026
PolicyOperative periodStatus
Viksit Gujarat Industrial Policy 2026 — MSME and Large/Mega/Ultra Mega schemes1 June 2026 to 31 May 2031In force
Aatmanirbhar Gujarat Schemes, 2022 (the previous scheme)5 October 2022 to 4 October 2027Units in production before 1 June 2026; option window to March 2027
Gujarat Textile Policy 20241 October 2024 to 30 September 2029In force
Gujarat Electronics Policy 2022-28Till 31 March 2028In force
Electronic Component Manufacturing Policy 2025Same tenure as the central component scheme (ECMS)In force
Gujarat Semiconductor Policy 2022-27Five years from notification (GR of 27 July 2022)In force
Gujarat IT/ITeS Policy 2022-27Till 31 March 2027In force
Gujarat GCC Policy 2025-30Till 31 March 2030In force
Viksit Gujarat Data Center Policy 2026-29Three years from notification (GR e-signed 6 August 2026)In force
Gujarat Biotechnology Policy 2022-27Till 31 March 2027In force
Science, Technology and Innovation Policy 2026-31Five years from 21 February 2026In force; schemes to be issued
Integrated Logistics and Logistics Park scheme 20212 August 2021 to 1 August 2026Expired
Scheme for assistance for R&D activities, 20207 August 2020 to 6 August 2025Expired

What changed in 2026

  • VGIP 2026 from 1 June 2026: one scheme for MSMEs and one for large, mega and ultra mega units, with thrust-sector rates and selected-thrust support for sports goods, toys, footwear, robots and drones.
  • The old scheme is still an option for units not in production before 1 June 2026 — if they opt by 25 March 2027 (MSMEs) or 8 March 2027 (large units) and start production by 4 October 2027.
  • Data Center Policy 2026-29: a new, separate policy for data centres of 150 MW of IT load and above, with power support of ₹1 a unit for 20 years.
  • STI Policy 2026-31: a ₹1,000 crore Swadeshi Anusandhan Fund and an R&D hub are announced; DST has yet to issue the schemes.
  • Logistics: the 2021 scheme closed on 1 August 2026, and no successor had been notified by 6 October 2026.
Industrial policy

Industrial policy: VGIP 2026 and the Aatmanirbhar Gujarat Scheme

The Viksit Gujarat Industrial Policy 2026 covers manufacturers that start commercial production from 1 June 2026 to 31 May 2031, through two schemes: one for MSMEs (GR of 25 September 2026) and one for Large, Mega and Ultra Mega units (GR of 8 September 2026). A unit takes capital, interest and power tariff subsidy in any mix, within a combined ceiling set by its size, its sector and whether its taluka is in Category A or B.

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VGIP 2026: capital subsidy and the combined ceilingMSME GR para 4.2–4.3; Large, Mega and Ultra Mega GR para 4B–4H · % of eligible fixed capital investment (EFCI), Category A / Category B taluka
Unit and sectorCapital subsidyCombined ceilingPaid over
MSME — general sectors35% / 25%45% / 35%5 years (micro units: capital subsidy in year one)
MSME — selected thrust sectors35% / 30%50% / 45%5 years
Large — general sectors15% / 10%20% / 15%10 years
Large — thrust sectors25% / 15%35% / 25%8 years
Mega — thrust sectors25% / 20%35% / 30%10 years
Ultra Mega — thrust sectors30% / 25%40% / 35%12 years
Large, Mega or Ultra Mega — selected thrust sectors35% / 30%50% / 45%8, 10 or 12 years

Interest subsidy is 7% a year on term loans (8% for MSMEs of women entrepreneurs, registered manufacturing startups and first-generation entrepreneurs), and power tariff subsidy is ₹2 a unit in Category A talukas and ₹1 in Category B — each within its own cap and the combined ceiling. EPF reimbursement is a separate component, and electricity duty exemption applies under its own Act. Details: capital subsidy, interest subsidy, power tariff subsidy and EPF reimbursement.

Thrust sectors for large, mega and ultra mega units (Annexure A). *Chemical and pharmaceutical units need a captive effluent treatment plant or access to a CETP. Selected thrust sectors — sports goods, toys, footwear, robots and drones — get the highest rates at every size.

  • Green energy equipment, green hydrogen and batteries
  • Electric vehicles and auto components
  • Capital equipment, cables and machinery
  • Metals and minerals, ceramics and glass
  • Textiles and apparel
  • Recycling and green-technology equipment
  • Agro and food processing
  • Chemicals*
  • Healthcare: medical devices, APIs*, bulk drugs*, KSMs*, pharmaceuticals*
  • Ancillaries to the semiconductor industry
  • Nuclear power equipment
  • Vehicle scrapping
  • E-waste recycling
  • Textile waste recycling
  • Shipping containers
  • Heavy earth-moving equipment

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Aatmanirbhar Gujarat Scheme (2022) or VGIP 2026As we read the 2022 GRs for MSMEs, Large Industries and Thrust Sector, and Mega Industries, all dated 5 October 2022
Point of comparisonAatmanirbhar Gujarat (2022)VGIP 2026
Operative period5 Oct 2022 – 4 Oct 20271 Jun 2026 – 31 May 2031
Who it covers nowUnits in production before 1 June 2026, and units that opt for it in timeUnits starting production from 1 June 2026
MSME upper limit (plant & machinery)₹50 crore₹125 crore
Capital subsidy for MSMEsMicro enterprises only (plant & machinery up to ₹1 crore): 10–25% of the term loan, up to ₹10–35 lakh25–35% of EFCI (30–35% in selected thrust sectors)
Interest subsidy for MSMEs5–7% by taluka, up to ₹25–35 lakh a year, 5–7 years7% (8% for women, first-generation and start-up MSMEs), 5 years, up to 10% of EFCI (20% in selected thrust sectors)
Power tariff subsidyNot a component₹2 or ₹1 a unit
Net SGST reimbursementYes — the headline benefit for large unitsNo SGST component
Taluka categoriesThree (I, II, III)Two (A, B)

The option window. A unit that had not started commercial production before 1 June 2026 can still choose the Aatmanirbhar Gujarat Scheme by applying within six months of the relevant GR — by 25 March 2027 for MSMEs and 8 March 2027 for large units — and only if it starts production by 4 October 2027. The choice is final, so we model both schemes before you file. Units already sanctioned under the old scheme keep claiming within the time limits in their GRs and sanction letters.

Textiles

Gujarat Textile Policy 2024

In force from 1 October 2024 to 30 September 2029 (GR of 15 October 2024) for new units and for expansion, diversification or modernisation. Activity-1 — garments, apparel, made-ups and technical textiles — gets capital subsidy of up to 35% of eligible fixed capital investment, capped at ₹100 crore; Activity-2 — weaving, knitting, dyeing and processing, texturising, twisting, embroidery and PSF/VSF spinning — up to 20%. Both add interest subsidy — 7% for seven or eight years, 5% in Category 3 talukas — and ₹1 a unit power subsidy for five years; garment, made-up and technical-textile units also get payroll assistance. Units inside municipal corporation limits are not eligible.

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Textile Policy 2024: capital and interest subsidyGR IMD/WRT/e-file/9/2023/2817/CH, paras 5.1–5.2 · Activity-1: garments, apparel, made-ups, technical textiles · Activity-2: weaving, knitting, processing and allied activities · taluka categories as in the Industries and Mines Department GR of 2 November 2020
Taluka categoryActivity-1Activity-2
Category 1 and PM MITRA Park35% of eFCI, up to ₹100 crore7% interest for 8 years, up to 3% of eFCI a year20% of eFCI, up to ₹50 crore7% interest for 7 years, up to 2% of eFCI a year
Category 230% of eFCI, up to ₹100 crore7% interest for 8 years, up to 2.5% of eFCI a year18% of eFCI, up to ₹50 crore7% interest for 7 years, up to 2% of eFCI a year
Category 320% of eFCI, up to ₹50 crore5% interest for 6 years, up to 2% of eFCI a year10% of eFCI, up to ₹40 crore5% interest for 5 years, up to 2% of eFCI a year
Capital subsidy conditions
Only for units with a term loan, sanctioned within one year of the start of production; paid after production starts, in five equal annual instalments.
Power tariff
₹1 a unit for five years from the start of production, on DISCOM power or renewable power bought through open access — not on captive power.
Payroll assistance
For five years, for Gujarat-domiciled workers registered under EPF: ₹5,000 a month for each woman and ₹4,000 for each man in garments, apparel and made-ups; ₹3,000 and ₹2,000 in technical textiles. Not for any period in which EPF reimbursement is taken under another scheme.
Labour-intensive units
At least 4,000 EPF-registered employees, 1,000 of them women: capital subsidy up to 35% with a ₹150 crore cap, and 7% interest for eight years.
Where to apply
MSMEs apply for the eligibility certificate within one year of starting production — to the District Industries Centre for investment up to ₹10 crore, the MSME Commissioner up to ₹50 crore. Larger units first register with the Industries Commissioner.
Not inside city limits
A unit located within a municipal corporation’s limits (as notified on the GR date) is not eligible (para 3.17).
Textile Policy or VGIP 2026?
One or the other: a unit that takes Textile Policy assistance cannot take benefits under any other State scheme (para 5.10). Textiles and apparel are also a VGIP 2026 thrust sector for large units, so we compare the two before you file.

Where textile projects cluster. The policy needs a site outside municipal corporation limits — in the textile belts around these cities.

  • Around Surat — weaving, processing, embroidery
  • Around Ahmedabad — denim, garments, processing
  • Navsari — PM MITRA Park
  • Jetpur — dyeing and printing
  • Kutch — home textiles and made-ups
Chemicals and pharma

Chemicals, pharmaceuticals and healthcare

Chemical, pharmaceutical and healthcare manufacturers claim under VGIP 2026. MSMEs get the general MSME rates. For large, mega and ultra mega units, chemicals and healthcare — medical devices, diagnostics, vaccines, APIs, bulk drugs, KSMs and pharmaceuticals — are thrust sectors with higher rates, on one condition: chemical units, and units making APIs, bulk drugs, KSMs or pharmaceuticals, must have a captive effluent treatment plant or access to a CETP.

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VGIP 2026 for chemical, pharma and healthcare units% of EFCI, Category A / Category B taluka · Large, Mega and Ultra Mega GR, Annexure A
UnitCapital subsidyCombined ceilingPaid overCondition
MSME (plant & machinery up to ₹125 crore)35% / 25%45% / 35%5 yearsGeneral MSME rates; no sector condition
Large — thrust sector25% / 15%35% / 25%8 yearsETP or CETP access for chemicals, APIs, bulk drugs, KSMs, pharma
Mega — thrust sector (₹1,000 crore and 250 jobs)25% / 20%35% / 30%10 yearsAs for large units
Ultra Mega — thrust sector (₹10,000 crore and 3,000 jobs)30% / 25%40% / 35%12 yearsAs for large units
Healthcare, as listed
Medical devices and diagnostics, surgical instruments and consumables, implants, PPE, vaccines, APIs, bulk drugs, KSMs and pharmaceuticals, and personal-care products such as soaps and toothpaste.
Chemicals, as listed
Petrochemicals, specialty, agro and fine chemicals, dyes and pigments, polymers, paints and coatings, industrial gases, water-treatment chemicals and more.
EPF reimbursement
Large units in thrust sectors claim it for eight years; mega and ultra mega units for ten; MSMEs for five.
Biotech projects
Biopharma and other biotechnology companies can choose the Biotechnology Policy 2022-27 instead — not both for the same cost head.
Electricity duty
A new industrial undertaking with the exemption certificate pays none for five years from the start of production, under the Gujarat Electricity Duty Act, 1958.

Where these plants cluster. Most need GPCB consents — and, for thrust-sector rates, an ETP or CETP arrangement — before a claim can go in.

  • Ankleshwar, Jhagadia — chemicals and APIs
  • Vapi, Sarigam — chemicals, dyes, pharma
  • Dahej — petrochemicals and specialty chemicals
  • Vadodara — chemicals and pharma
  • Ahmedabad — formulations and medical devices
Electronics

Electronics, components and semiconductors

Three Department of Science and Technology policies cover the electronics value chain: the Electronics Policy 2022-28 for electronics manufacturing, the Electronic Component Manufacturing Policy 2025, which matches the central component scheme for approved projects, and the Semiconductor Policy 2022-27 for fabs and ATMP/OSAT units, such as the projects at Dholera and Sanand.

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Electronics and semiconductor policies: headline supportFrom each GR, checked on 6 October 2026
PolicyOperative periodHeadline support
Electronics Policy 2022-28Till 31 March 2028Capital support of 20% of eligible capex, up to ₹200 crore; 7% interest subsidy up to ₹10 crore a year for five years; freight support of 25% up to ₹5 crore a year for five years; ₹1 a unit power subsidy for five years; 100% stamp duty and registration reimbursement; electricity duty exemption
Electronic Component Manufacturing Policy 2025Same tenure as the central ECMSMatching state incentives for projects approved under MeitY’s Electronics Component Manufacturing Scheme; workforce development credits up to ₹12.5 crore for a lab, finishing school or centre of excellence (project cost capped at ₹25 crore). Not combinable with the Electronics Policy 2022-28
Semiconductor Policy 2022-27Five years from the GR of 27 July 2022State assistance equal to 40% of the central capex assistance for approved fabs, display fabs, compound-semiconductor and ATMP/OSAT units; 75% subsidy on the first 200 acres of land for a fab in Dholera (50% beyond); 100% stamp duty and registration reimbursement; water at ₹12 a cubic metre for five years; ₹2 a unit power subsidy for ten years; electricity duty exemption

Suppliers to semiconductor plants — ultra-pure chemicals and gases, wafers, PCBs, equipment and automation — are also a VGIP 2026 thrust sector for large units in their own right, outside the semiconductor policy.

IT and GCCs

IT/ITeS units and global capability centres

Two DST policies with the same structure: the IT/ITeS Policy 2022-27 (applications by 31 March 2027) and the GCC Policy 2025-30 (till 31 March 2030) for global capability centres with at least 50 employees. Both pay CAPEX support of 20% on buildings and 30% on IT hardware and software, OPEX support of 15% a year for five years, and special incentives on payroll, interest, EPF and electricity duty.

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IT/ITeS and GCC policies: supportIT/ITeS Policy 2022-27 as amended on 11 October 2024; GCC Policy 2025-30 · Category I: investment under ₹250 crore · Category II: ₹250 crore or more, or 500 or more direct jobs
SupportCategory ICategory II
CAPEX support20% of building and fixed assets, 30% of IT hardware, software and networkingUp to ₹50 croreUp to ₹200 crore
OPEX support15% of eligible operating costs, for five yearsUp to ₹20 crore a yearUp to ₹40 crore a year
Employment generation incentive50% of one month’s CTC per employee, up to ₹50,000 for a man and ₹60,000 for a woman
Interest subsidy7%, up to ₹1 crore a year, for five years
EPF100% for women and 75% for men, for five years
Electricity dutyThe full duty, for five years
Overall limit
Under the IT/ITeS Policy, CAPEX, OPEX and special incentives together cannot exceed 75% of eligible investment.
Lease rent
Counts within OPEX support, up to ₹50 a sq ft a month of built-up area (IT/ITeS and GCC).
ICT and deep-tech startups
Lease rent support up to ₹25 a sq ft a month for five years, 25% of R&D and prototype costs up to ₹25 lakh, and 75% of patent costs up to ₹5 lakh (domestic) or ₹10 lakh (international) a patent.
GCC quality certification
80% of certification costs up to ₹10 lakh, for up to five certifications.
How to apply
On the DST incentive portal, dstpolicy.gujarat.gov.in. IT/ITeS units must apply by 31 March 2027 and start operating by 31 March 2028.
Data centres

Viksit Gujarat Data Center Policy 2026-29

A dedicated policy from the Department of Science and Technology for data centres with an approved IT load of 150 MW or more, at least 51% green power, and in-principle approval by 5 August 2029. It cannot be combined with other Gujarat policies, and total incentives are capped at 75% of eligible investment, paid over 20 years.

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Data Center Policy 2026-29: incentivesGR DST/MIT/e-file/24/2026/0624/IT, para 6.1
IncentiveWhat it gives
Power₹1 a unit for 20 years from commercial operation
Electricity duty100% reimbursed for 20 years
Interest subsidyUp to 4% for 10 years, capped at ₹25 crore a year
Capital subsidy2.5% of eligible investment — Dholera region only
Stamp duty100% on land lease or purchase; first sub-lease too
SGST100% on plant and building for 8 years; net SGST on services for 20 years
Desalination20% of capex or ₹2 crore per MLD, whichever is lower

Smaller data centres were covered by the IT/ITeS Policy 2022-27 (Tier III or above, 150 racks or 900 kW of rack power). Whether that route stays open alongside the new policy is not settled in the GR — we confirm with the Directorate of ICT before you file.

Biotechnology

Gujarat Biotechnology Policy 2022-27

Run by the Gujarat State Biotechnology Mission for companies and LLPs, until 31 March 2027. Projects under ₹200 crore get 25% capital assistance up to ₹40 crore and 15% of operating costs up to ₹5 crore a year; mega and special projects get up to ₹200 crore.

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Biotechnology Policy 2022-27: key supportGR BTP/022022/446/BT, 15 February 2022
SupportProjects under ₹200 croreMega and special projects
Capital assistance25% of eligible investment, up to ₹40 crore25%, up to ₹200 crore
Operating costs: power, lease, patents, certification15%, up to ₹5 crore a year, 5 years15%, up to ₹25 crore
Interest subsidy7% on borrowings up to ₹100 crore (₹7 crore a year), plus 3% above (overall ₹20 crore a year), 5 years
EPF100% for women and 75% for men, 5 years
Electricity duty100% reimbursed for 5 years
Patents50%, up to ₹2 lakh a domestic and ₹5 lakh an international patent

Mega projects are those with ₹200 crore or more of investment or 500 or more direct jobs. Buildings can be at most 20% of eligible investment, and support from all government sources is capped at 90% of each cost head.

R&D and innovation

R&D, technology and patent support

For MSMEs, VGIP 2026 pays 75% of patent costs up to ₹25 lakh, 65% of technology acquisition up to ₹50 lakh, and support for quality certification, ICT and energy saving. Units in the selected thrust sectors — sports goods, toys, footwear, robots and drones — get larger IPR, technology, certification and design support.

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VGIP 2026 support for MSMEsScheme for assistance to MSMEs, GR 25.09.2026
SupportRate and capPara
Patent registration75%, up to ₹25 lakh12
Technology acquisition65%, up to ₹50 lakh11
Quality certification50%, up to ₹10 lakh8.2
ICT and Industry 4.065%, up to ₹5 lakh10
ERP system65%, up to ₹1 lakh8.1
ZED certification50%, up to ₹50,0009
Energy and water audit75%, up to ₹50,00013
Energy and water saving equipment25%, up to ₹20 lakh13

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Selected thrust sectorsSports goods, toys, footwear, robots and drones — MSME GR para 19; Large/Mega GR para 5
SupportMSMEsLarge and above
IPR: patent, design, copyright, trademark, GI75%, up to ₹1 crore75%, up to ₹1 crore
Technology acquisition65%, up to ₹1 crore75%, up to ₹5 crore
International certification100%, up to ₹5 crore100%, up to ₹5 crore
Creative design studio50%, up to ₹5 crore50%, up to ₹50 crore
Training, first 12 months₹8,000 an employee a month₹15,000 an employee a month
Stamp duty and registration on land100%100%
Large R&D centres
The VGIP 2026 policy document lists 50% capital support up to ₹50 crore a year for the first five centres investing ₹300 crore or more, and 25% up to ₹20 crore a year for others above ₹100 crore. The implementing GR is awaited.
STI Policy 2026-31
A ₹1,000 crore Swadeshi Anusandhan Fund, research clusters and 250 fellowships a year; company-level schemes are still to be issued by DST.
Who sanctions MSME support
Technology, patents, quality and thrust-sector items: MSME Commissionerate. ZED, ICT and energy saving: District Industries Centre.
Rent assistance

Rent assistance for small manufacturers

Under para 17 of the VGIP 2026 MSME scheme, a micro or small manufacturer that rents or leases a shed gets 65% of the rent back — 75% if it is wholly owned by women — up to ₹3 lakh a year for five years. The owner must hold clear title, the unit must use power for manufacturing, and the claim must be filed within six months of the rent deed.

Counted from
The date of the rent deed, or three months before production — whichever is later.
Who sanctions it
The General Manager, District Industries Centre. Trading and service businesses are not covered.
IT and GCC units
Lease rent up to ₹50 a sq ft a month counts within 15% OPEX support (IT/ITeS 2022-27, GCC 2025-30).
ICT and deep-tech startups
Lease rent up to ₹25 a sq ft a month for five years (IT/ITeS addendum, 2024).
Biotech units
Lease rent counts within 15% OPEX support, up to ₹5 crore a year (Biotech Policy 2022-27).
Worked examples

Sector support in numbers

Six illustrations across the policies on this page. Each claim has its own documents and time limit.

Rent · MSE

Engineering job shop, Rajkot

A small manufacturer rents a shed for ₹25,000 a month.

  • 65% of the rent₹16,250 a month
  • A year₹1,95,000
  • Over five years₹9,75,000

Filed with the District Industries Centre within six months of the rent deed; the shed owner must hold clear title.

Rent · women-owned

Food processing unit, Anand

A unit wholly owned by women rents a shed for ₹25,000 a month.

  • 75% of the rent₹18,750 a month
  • A year₹2,25,000
  • Over five years₹11,25,000

The 75% rate needs 100% women ownership; any other ownership gets 65%.

Rent · ceiling applies

Plastic moulding unit, Changodar

A larger shed at ₹40,000 a month.

  • 65% of the rent₹26,000 a month
  • ₹3,12,000 a year, capped at₹3,00,000
  • Reimbursed a year₹3,00,000

From about ₹38,500 a month of rent upward, the ₹3 lakh yearly ceiling decides the amount.

Patents · MSME

Valve maker, Ahmedabad

An MSME spends ₹4 lakh on eligible costs for two Indian patent applications, with attorney fees inside the scheme’s caps.

  • 75% of ₹4 lakh₹3,00,000
  • PaidHalf after publication, half after grant
  • Assistance₹3,00,000

Apply within six months of publication. The ₹25 lakh cap covers all of the enterprise’s patent claims together.

Technology · ceiling applies

Ceramic unit, Morbi

An MSME licenses a glazing process from a recognised institution for ₹1 crore, including the first two years’ royalty.

  • 65% of ₹1 crore₹65,00,000
  • Ceiling₹50,00,000
  • Assistance₹50,00,000

Apply to the MSME Commissionerate within six months of signing the agreement. Machinery bought with the technology does not count.

Textiles · Activity-1

Apparel unit, PM MITRA Park, Navsari

A new apparel unit in the PM MITRA Park, which gets the Category 1 rates, with ₹40 crore of eligible fixed capital investment, part-funded by a term loan.

  • 35% of ₹40 crore₹14,00,00,000
  • Five equal annual instalments₹2,80,00,000 a year
  • Capital subsidy₹14,00,00,000

The ₹100 crore cap is far off here. Without a term loan — or with one sanctioned more than a year after production starts — there is no capital subsidy.

Logistics

Logistics parks and warehouses: where things stand

The Scheme for Financial Assistance to Integrated Logistics Facilities under the Gujarat Integrated Logistics and Logistics Park Policy 2021 ran from 2 August 2021 to 1 August 2026. It has expired, and no successor scheme had been notified by 6 October 2026. Projects already sanctioned should follow their sanction letters.

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What the 2021 logistics scheme offeredGR GID-102021-560-I-1, 31 July 2021 — closed on 1 August 2026
SupportRate and cap
Capital subsidy25% of eligible investment, up to ₹15 crore
Interest subsidy7%, up to ₹50 lakh a year, for 7 years
Stamp duty100% reimbursement
Electricity duty100% exemption for 5 years

Planning a warehouse, cold chain or logistics park now? We track the State’s next logistics notification and check what central schemes and VGIP 2026 can and cannot cover for your project.

Process

How we handle sector incentives

Choose the right policy first, register before the money is spent, and keep each cost head’s claim on its own clock.

  1. Map the project to a policy

    Sector, investment, location and timing decide whether VGIP 2026, the old scheme or a sector policy pays more — and which ones cannot be combined.

    First
  2. Register before you spend

    Most policies need registration or in-principle approval before the investment or within months of it.

    Before investment
  3. Keep cost heads separate

    Patents, technology, certification, rent and capital costs are claimed separately, each with its own evidence and time limit.

    Throughout
  4. File each claim on time

    Many components must be applied for within six months of the expense, deed or certificate.

    Within 6 months
  5. Track to disbursement

    We follow each claim with the sanctioning office until it is paid.

Pitfalls

Where sector claims go wrong

  1. Picking the wrong policy.Some policies bar claims under any other Gujarat policy.
  2. Choosing the old scheme by default.The Aatmanirbhar option is final and closes in March 2027; model both schemes first.
  3. Spending before approval.In-principle approval or registration often has to come first.
  4. Missing six-month windows.Patents, technology, certification and rent claims each have their own deadline.
  5. No ETP plan for a chemical or pharma project.Large units get thrust-sector rates only with a captive ETP or CETP access.
  6. Planning on an expired scheme.The 2021 logistics scheme and the 2020 R&D scheme have closed.
  7. Counting policy-book figures as sanctioned.Support listed in a policy document needs its implementing GR before it can be claimed.
FAQ

Industrial and sector incentives: questions we get asked

Which industrial policy applies to a new unit in Gujarat in 2026?

The Viksit Gujarat Industrial Policy 2026, for units that start commercial production from 1 June 2026 to 31 May 2031: one scheme for MSMEs (GR of 25 September 2026) and one for large, mega and ultra mega units (GR of 8 September 2026). Units that started production before 1 June 2026 stay on the Aatmanirbhar Gujarat Scheme of 2022.

Can a new unit still choose the Aatmanirbhar Gujarat Scheme?

Only if it had not started commercial production before 1 June 2026, applies within six months of the relevant GR — by 25 March 2027 for MSMEs and 8 March 2027 for large units — and starts production by 4 October 2027. The choice is final.

Which sectors are thrust sectors under VGIP 2026?

For large, mega and ultra mega units, Annexure A of the GR lists 16 thrust sectors, among them green energy equipment, mobility, capital equipment, metals and minerals, textiles and apparel, agro processing, chemicals, healthcare, semiconductor ancillaries and recycling. Chemical and pharmaceutical units must have a captive effluent treatment plant or access to a CETP.

Which sectors are selected thrust sectors under VGIP 2026?

Sports goods and equipment, toys, footwear, robots and drones, plus any others the Government notifies. They get the highest combined ceilings — 50% of EFCI in Category A talukas and 45% in Category B — and extra support for IPR, technology acquisition, international certification, design studios, training and stamp duty.

What is the Gujarat Textile Policy 2024?

A policy in force from 1 October 2024 to 30 September 2029. Garment, apparel, made-up and technical-textile units get capital subsidy of up to 35% of eligible fixed capital investment (up to ₹100 crore), and weaving, knitting, processing and similar units up to 20%; both get interest subsidy (7% for seven or eight years, 5% in Category 3 talukas) and ₹1 a unit power subsidy for five years. Units inside municipal corporation limits are not eligible.

Are pharmaceuticals a thrust sector under VGIP 2026?

Yes, for large, mega and ultra mega units: healthcare — including APIs, bulk drugs, KSMs and pharmaceuticals — and chemicals are thrust sectors, provided the unit has a captive effluent treatment plant or access to a CETP. Pharma MSMEs get the general MSME rates.

Does Gujarat support semiconductor projects?

Yes. Under the Semiconductor Policy 2022-27 the State adds assistance equal to 40% of the central capital assistance for approved projects, with a 75% land subsidy on the first 200 acres for a fab in Dholera and ₹2 a unit power support for 10 years.

What does Gujarat offer IT companies and global capability centres?

Under the IT/ITeS Policy 2022-27 and the GCC Policy 2025-30: CAPEX support of 20% on buildings and 30% on IT hardware and software (up to ₹50 crore, or ₹200 crore for larger units), OPEX support of 15% a year for five years (up to ₹20 crore or ₹40 crore a year), and support for payroll, interest, EPF and electricity duty.

What R&D support does Gujarat give MSMEs in 2026?

Under the VGIP 2026 MSME scheme: 75% of patent costs up to ₹25 lakh, 65% of technology acquisition costs up to ₹50 lakh, 50% of quality certification up to ₹10 lakh, 65% of ICT and Industry 4.0 costs up to ₹5 lakh, and support for energy and water audits and equipment.

What is the Viksit Gujarat Data Center Policy 2026-29?

A Department of Science and Technology policy for data centres with an approved IT load of 150 MW or more and at least 51% green power. It offers ₹1 a unit power support and 100% electricity duty reimbursement for 20 years, up to 4% interest subsidy, SGST reimbursement and stamp duty support, within 75% of eligible investment.

How does rent assistance work for small manufacturers?

Under para 17 of the VGIP 2026 MSME scheme, a micro or small manufacturer in a rented or leased shed gets 65% of the rent reimbursed (75% if wholly women-owned), up to ₹3 lakh a year for five years. It must apply within six months of the rent deed, and the District Industries Centre sanctions it.

Is the Gujarat Biotechnology Policy 2022-27 still open?

Yes, until 31 March 2027. Projects under ₹200 crore get 25% capital assistance up to ₹40 crore and 15% of operating costs up to ₹5 crore a year; mega and special projects get up to ₹200 crore of capital assistance.

Is the Gujarat logistics policy still in force?

No. The Scheme for Financial Assistance to Integrated Logistics Facilities ran from 2 August 2021 to 1 August 2026. No successor scheme had been notified by 6 October 2026.

Can we claim under VGIP 2026 and a sector policy together?

Generally not. The VGIP 2026 MSME scheme excludes an enterprise that is availing incentives under another State scheme unless a GR provides otherwise, the large-unit scheme bars claiming the same component twice, and the Textile and Data Center policies bar benefits under any other Gujarat scheme. The right choice depends on which pays more for your project.

Are the VGIP 2026 R&D centre incentives available now?

They are listed in the VGIP 2026 policy document, but the implementing GR had not been issued by 6 October 2026. They can be planned for, not yet claimed.

Sources

Policies and official sources

Each figure on this page is taken from the policy’s GR or official document, checked on 6 October 2026.

PDFGR 25.09.2026 · PDF

Scheme for assistance to MSMEs

Paras 4 (capital, interest, power), 8–13 (quality, ZED, ICT, technology, patents, energy), 17 (rent) and 19 (selected thrust sectors).

Download the GR
PDFGR 08.09.2026 · PDF

Scheme for Large, Mega and Ultra Mega

Para 4: rates by size and sector; para 5: selected thrust sectors; Annexure A: the thrust sectors.

Download the GR
OFFICIALGR 15.10.2024 · iNDEXTb

Gujarat Textile Policy 2024

Capital, interest, power and payroll support for the two textile activity groups, and the labour-intensive package.

Read the GR
OFFICIALiNDEXTb · PDF

Gujarat Electronics Policy 2022-28

Capital, interest, freight and power support for electronics manufacturing.

Read the policy
OFFICIALiNDEXTb · PDF

Gujarat Semiconductor Policy 2022-27

State top-up of central capex assistance, land, water and power support for fabs and ATMP/OSAT units.

Read the policy
OFFICIALDepartment of Science and Technology

DST Gujarat policies

Data Center Policy 2026-29, IT/ITeS 2022-27, GCC 2025-30, the component and STI policies.

Open DST policies
OFFICIALPolicy document

Viksit Gujarat Industrial Policy 2026

Section 15: promotion of R&D, including the R&D-centre incentives.

Read the policy
OFFICIALGSBTM

Biotechnology Policy 2022-27

Capital, operating, interest, EPF and patent support for biotech units.

Open GSBTM
OFFICIALGR 31.07.2021 · expired

Logistics scheme, 2021

The scheme that ran from 2 August 2021 to 1 August 2026.

Read the GR

Notes. Sector policies change by GR; the latest notified text prevails. Statements about the Aatmanirbhar Gujarat Scheme reflect our reading of its GRs of 5 October 2022. Worked examples are illustrations.

We match your project to the policy that pays most, register it at the right time, and file every component on its own deadline.

  • Policy mapping across VGIP 2026, the Aatmanirbhar option and sector policies
  • Textile, electronics, IT and GCC applications
  • Patent, technology and certification claims
  • Rent assistance for MSEs
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Prepared by the NeoApex Saver advisory teamNeoApex Saver Pvt Ltd (formerly Apex Consultants) is a Gujarat government-incentive advisory based in Ahmedabad and Gandhinagar, led by Ashish Shah, Managing Director. References on this page are to Government of Gujarat GRs and policy documents; the worked examples are ours.Last reviewed 6 October 2026 · Report a correction

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