Gujarat’s New Industrial Policy Stumbles Upon Global Tariff Roadblock

Ahead of the 2027 Vibrant Gujarat Global Summit (VGGS), the state government is organising four Vibrant Gujarat Regional Conferences (VGRC), and has announced that industrial groups wishing to invest would continue to benefit from the 2020-25 Industrial Policy. 

Mamta Verma, the Principal Secretary of Gujarat’s Department of Industry and Mines, stated that it could take another three to four months to finalise the new policy. This is particularly due to the US imposing high tariffs on India.

The department has already completed the extension process, and industries signing Memoranda of Understanding (MoU) at the regional summits will receive benefits and incentives under the old policy.

Four Partner Countries at VGRC:
P. Swaroop, the State Industrial Commissioner, mentioned that the first regional summit will be held in Mehsana in north Gujarat on October 9 and 10. Japan, Vietnam, South Korea, and the Netherlands will be partner countries, along with diplomatic representatives from Rwanda, Ukraine, Nigeria, New Zealand, and Guyana. The conference will be held at the Ganpat University campus, from October 9 to October 13. Similar conferences are planned for 2026 in Rajkot, Surat, and Vadodara.

Targeting ₹2 Lakh Crore Investment:
Industry Minister Balvantsinh Rajput said that during the 2023 regional summit, the state secured ₹45,000 crore in investment commitments. For this summit, the state is aiming for ₹2 lakh crore worth of MoUs. The main reason behind organising these regional summits was to attract industrial investments to every district in Gujarat and, thereby, increase job opportunities. The Cabinet Minister emphasised that the regional summits will help improve investment facilities, develop region-specific sectors, empower MSMEs and local industries, and accelerate infrastructure projects, among others. 

32 Seminars & 13 Panels At Conference:
In Mehsana, the two-day conference will feature 32 seminars and 13 panel discussions, along with two roundtable conferences. There will also be business exhibitions, reverse buyer-seller meetings, and B2B/B2G meetings. The conference will include central ministers, foreign trade chambers, industrial groups from both India and abroad, as well as delegates from the business sector. It is noteworthy that over 200 industrialists and 29 foreign diplomats participated in the roadshows held in Delhi to ensure the success of this conference. The focus will be on agriculture and food processing, automotive and auto components, green energy ecosystems, and engineering sectors.

30% Projects Dropped In The 2024 Summit:
The Industry Minister stated that, in the 10th Vibrant Gujarat Global Summit 2024, organised by the Gujarat government, 30% of the projects from the total MoUs signed were dropped for various reasons, while 70% of the projects were at different stages of implementation. A total of 98,540 MoUs were signed during the summit, with an investment commitment of ₹45 lakh crore.