Gujarat Unveils New Industrial Policy, Targets ₹10 Lakh Crore Investments in Five Years

Chief Secretary Manoj Kumar Das said, “This policy is the blueprint for taking Gujarat towards a USD 3.5 trillion economy. During the policy period, Gujarat aims to attract investments worth ₹10 lakh crore. Industries established under the policy are expected to receive incentives of approximately ₹2.5 lakh crore over the next 15 years. These benefits will be available not only to industries in Gujarat but also to investors from other states.”

Gujarat Industries Minister Harsh Sanghavi said that the new Industrial Policy offers various incentives ranging from 15 to 45 per cent across different sectors to attract fresh investments, create employment opportunities, and enable young people to build a bright future in their native places. In certain sectors, incentives of up to 50 per cent will be provided to promote innovation and research among the youth. The policy’s primary objective is to establish Gujarat as a global leader in sunrise sectors such as green energy, drone manufacturing, robotics, footwear and toy manufacturing. Meanwhile, Chief Minister Bhupendra Patel said that MSMEs, startups, women entrepreneurs, first-generation industrialists and the youth have been placed at the centre of the state’s development agenda under the new policy.

Additional Chief Secretary (Industries) Mamta Verma stated, “This policy is not merely an investment attraction framework; it is a strategy to position Gujarat as a global hub for manufacturing, green energy, technology, and exports by 2047. Its inclusive approach—covering MSMEs, mega industries, startups, women entrepreneurs, R&D, and environmental sustainability—makes it one of the most comprehensive industrial policies in Gujarat’s history.”

Mamta Verma also announced Project T.H.R.I.V.E., aimed at relocating industrial units operating within city limits to locations outside urban areas. Benefits under the project include: monthly wage support of ₹5,000 per employee for six months, new-unit status for relocated enterprises, capital subsidies for industrial parks and environmental infrastructure, and housing development assistance for workers. 

Industries Commissioner P. Swaroop said, “The policy places startups, women entrepreneurs, and next-generation technology-driven industries at its core. Beyond industrial growth, it emphasizes the ‘Jobs to Quality Lives’ approach. The government believes this policy will play a significant role in moving Gujarat towards a USD 3.5 trillion economy by 2047.”

Why Was A New Policy Needed?

Over the last 22 years, Gujarat’s economy has expanded nearly 20-fold. The state's GDP increased from USD 15.73 billion in 2002–03 to USD 329.70 billion in 2024–25. Gujarat has established national leadership in foreign direct investment (FDI), ports, industrial infrastructure, and Ease of Doing Business. The next phase of growth is expected to be driven by high-value manufacturing, technology, and export-oriented industries.

Gujarat’s vision for 2047 entails: becoming a global manufacturing hub, strengthening Gujarat’s participation in global supply chains, prromoing high-tech and deep-tech industries, accelerating the green transition, improving quality of life alongside job creation, and ensuring balanced regional development. 

The key challenges facing the policy include: fiscal burden and lack of clarity on employment generation estimates, equitable distribution of benefits across districts, land acquisition for industrial projects, availability of water and electricity resources, and limited clarity regarding incentives and strategy for AI, Quantum Computing, and Deep-Tech sectors.