Highlights of the New Gujarat Industrial Policy 2020

16 Oct 2020Business Services
Highlights of the New Gujarat Industrial Policy 2020

In August 2020, the State government of Gujarat announced the New Gujarat Industrial Policy (GIP) 2020. The policy is designed to strengthen Gujarat’s manufacturing ecosystem as well as provide a thrust to the ‘up and coming’ sectors of India’s dynamic business ecosystem. The policy objectives include employment generation, new generation manufacturing, the advancement of thrust sectors, technology adoption, support to Micro, Small and Medium Enterprises (MSMEs), and balanced development of industry and infrastructure.

The previous policy, which was widely regarded as a success, was applicable from 2015 to 2019, was extended until the launch of GIP 2020. Over the last five years, Gujarat ranks first in the ‘number of Industrial Entrepreneurs Memorandum’ (Intent to Invest), contributing to ~51% of the national list. The new policy is expected to provide businesses a quantum of ~INR 40,000 crores (USD 5.3 billion1 ) as incentives over the next five years. The policy also provides ‘relocation incentives’ to attract a host of multinationals looking to shift their manufacturing bases from China. As summarized by the Chief Minister of Gujarat, the policy lays down a foundation to develop Gujarat as a key pillar in ‘Strengthening the Aatma-Nirbhar (self reliant) spirit of India’.

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