Viksit Gujarat Industrial Policy 2026 (MSME, Large, Mega and Ultra Mega Schemes)

What is the Viksit Gujarat Industrial Policy 2026?

The Viksit Gujarat Industrial Policy 2026 is the Government of Gujarat's industrial incentive policy, published by the Industries and Mines Department. The policy document says it is valid for five years from 1 June 2026. Its cash incentives are given through two Government Resolutions (GRs):

These schemes replace the Aatmanirbhar Gujarat schemes of 5 October 2022 for new projects. Units that started commercial production before 1 June 2026 stay under the Aatmanirbhar schemes. The policy also announces support for startups, research and development centres, workforce housing, green infrastructure and women entrepreneurs; some of those items are notified through separate resolutions, so check the specific GR before you plan a claim.

Related schemes: People who look up Viksit Gujarat Industrial Policy 2026 (MSME, Large, Mega and Ultra Mega Schemes) often also check Vishesh Katan, Vankari & Vanat Sahay (Special Spinning and Weaving Assistance Scheme), Vidhyadeep Yojana (Vidhyadeep Insurance Scheme), Vishist Coaching Scheme (GBOCWWB), Vidhya Sadhana Yojana (Free Bicycle Scheme for Scheduled Tribe Girl Students), Whale Shark Conservation Programme, Vehicle Loan Scheme (Gujarat Thakor and Koli Vikas Nigam), Widow Certificate in Gujarat (Vidhva Praman Patra), Various Awards to Individuals/Organizations who have made Outstanding Contributions in the Field of Social Welfare and Wire Fencing Around the Farm for Crop Protection. See also all Gujarat government schemes.

The main idea of the 2026 policy is choice. Instead of a single fixed subsidy, a unit picks any mix of three components, capital subsidy, interest subsidy and power tariff support, within an overall ceiling worked out as a percentage of its eligible fixed capital investment (EFCI). The ceiling depends on the size of the unit, the sector and whether the taluka is Category A or Category B.

Who is eligible?

Eligible enterprises:

• A new enterprise, or an existing enterprise expanding or diversifying, that starts commercial production in Gujarat between 1 June 2026 and 31 May

• Companies, partnership firms and LLPs, societies, trusts, industrial cooperatives and proprietary concerns engaged in manufacturing, production, processing or job work.
• MSMEs are classed by investment in plant and machinery: micro up to Rs 2.5 crore, small up to Rs 25 crore, medium up to Rs 125 crore.
• Large units invest more than Rs 125 crore in plant and machinery.
• Mega units are in thrust sectors with at least Rs 1,000 crore investment and 250 direct jobs, plus 50 jobs for every further Rs 200 crore.
• Ultra mega units are in thrust sectors with at least Rs 10,000 crore and 3,000 direct jobs, plus 500 jobs for every further Rs 5,000 crore.

An expansion must raise gross fixed investment by at least 50% and installed capacity by at least 50%, with at least 60% of the new investment in plant and machinery. MSME diversification needs 25% more investment for micro and small units and 50% for medium units.

Not eligible:

• Units that started commercial production before 1 June 2026. They stay under the earlier schemes.
• A project that has already taken a state incentive for the same gross fixed capital investment under another state scheme, unless the GR allows it.
• Investment for renovation, rehabilitation or rationalisation of an existing unit.
• Land, working capital, goodwill, royalty, pre-operative expenses, second-hand or leased machinery, capitalised interest and power plants not for captive use are excluded from eligible investment.

What are the incentives for MSMEs?

Under the MSME GR of 25 September 2026, an enterprise can take one component or any combination, within the individual ceilings and the overall ceiling.

Selected thrust sectors (sports goods, toys, footwear, robots and drones) get capital subsidy of 35% (Category A) or 30% (Category B), interest subsidy up to 20% of EFCI, power tariff support up to 20% of EFCI, and an overall ceiling of 50% or 45%.

Women entrepreneurs, registered manufacturing startups and first generation entrepreneurs get 1% extra interest subsidy within the ceiling. The interest subsidy is never more than the interest actually charged by the bank, and NBFC loans are not eligible for it.

MSMEs also get EPF reimbursement: 100% of the employer's EPF contribution for new employees for 5 years, capped at Rs 1,800 a month for men, Rs 2,500 for women and Rs 3,000 for specially abled employees. The MSME GR adds smaller schemes, for example 65% of ERP system cost up to Rs 1 lakh, and for selected thrust sector MSMEs 100% of international certification fees up to Rs 5 crore, 50% of a creative design studio up to Rs 5 crore, and 80% of AI subscription fees up to Rs 1 lakh a year for micro units and artisans.

What are the incentives for large, mega and ultra mega units?

Within each ceiling, the interest subsidy is 7% on the term loan and power tariff support is Rs 2 a unit in Category A and Rs 1 a unit in Category B. Large, mega and ultra mega units also get EPF reimbursement for 8 or 10 years at the same monthly caps, and electricity duty exemption under the Gujarat Electricity Duty Act, 1958. Ultra mega units get 100% reimbursement of stamp duty and registration fees on land bought or leased for the project, if they apply within 3 months of commercial production. A High-Power Committee chaired by the Chief Minister may approve a customised package for mega and ultra mega thrust projects.

What other support does the policy announce?

The policy document lists further support. Treat these as policy commitments and check the specific scheme resolution before relying on them:

• Startups: seed support up to Rs 30 lakh, plus Rs 10 lakh for significant societal impact and Rs 10 lakh for high-tech, fintech, disruptive or green startups (up to Rs 50 lakh in all), and a sustenance allowance of Rs 25,000 a month for one year, or Rs 30,000 with a woman co-founder.
• Women entrepreneurs: an extra 1% interest subsidy and rent assistance of 75% of rent paid up to Rs 3 lakh a year for 5 years.
• Workforce housing: 80% of cost up to Rs 40 crore for common dormitories or working women's hostels, and 40% up to Rs 40 crore when set up by a unit.
• Environment: 50% up to Rs 75 crore for wastewater projects reaching 70% recycling; cleaner production technology at 50% up to Rs 1 crore for MSMEs.
• Research and development: capital and operating support for R&D centres investing at least Rs 100 crore.

What documents are required?

How to apply

For MSMEs (GR of 25 September 2026):

1. Set up the unit and record the date of commercial production, which is the date of the first commercial sale bill.
2. Apply for a Provisional Eligibility Certificate to the District Industries Centre or MSME Commissionerate within 6 months of commercial production, or within 6 months of the GR, whichever is later. The provisional certificate covers up to 40% of eligible investment.
3. Apply for the Final Eligibility Certificate within 6 months of completing the project, or within 6 months of the end of the eligible investment period (12 months from production for plant and machinery up to Rs 50 crore, 18 months above that).
4. Claim the incentives after the certificate is issued. Late applications made within two years are cut in proportion to the delay; none are taken after two years.

For large, mega and ultra mega units (GR of 8 September 2026):

1. Register with the Industries Commissioner before commercial production, or within 3 months of the GR, whichever is later.
2. Apply for a Provisional Eligibility Certificate within 3 months of production or of registration, whichever is later; it covers up to 40% of eligible investment.
3. Apply for the Final Eligibility Certificate within 3 months of completing the investment or of the end of the eligible investment period (18 to 48 months from production depending on project size). An asset verification team checks the investment.
4. File claims every 3 months in the prescribed proforma. Applications more than one year late are not accepted.

Common mistakes

• Starting production before 1 June 2026 and then trying to claim under the new policy. Those units belong to the Aatmanirbhar Gujarat schemes.
• Missing the registration or certificate deadline. Both GRs cut incentives for late filing and reject very late cases outright.
• Counting ineligible items such as land, used machinery or leased buildings in eligible investment.
• Taking an NBFC loan and expecting interest subsidy.
• Stopping production during the incentive period. The MSME GR allows recovery of incentives with 18% interest a year for any breach of its conditions.

Where to get help

Large, mega and ultra mega projects deal with the Office of the Industries Commissioner, Gandhinagar (ic.gujarat.gov.in). MSMEs deal with the District Industries Centre of their district or the MSME Commissionerate (msmec.gujarat.gov.in), which also posts the MSME GR. The policy says Udyog Sahay Kendras on a hub and spoke model will be set up as a single support point for investors.