Handloom and Handicrafts Retail Shop · Gujarat
What it takes to start handloom and handicrafts retail shop in Gujarat: today’s cost, the central and state subsidy, where the work already happens and who can help.
- cost in the report
- ₹9.1 lakh
- priced in
- 2017+
Subsidy you could get here
What you could get
PMEGP margin money (central)25% of project cost, kept in your loan account for 3 years. Your own share: ₹91,000.₹2.27 lakh
State capital subsidy — GujaratThis state’s capital subsidy does not cover this kind of unit.—
State interest help (over the years)7% × 5 years · on a loan of about ₹8.19 lakh7% on term loans for 5 years, total up to 10% of eligible fixed capital investment; +1% for women, first-generation entrepreneurs and registered manufacturing startups. The unit must bear at least 2%. Capital, interest and power subsidy together stay within the taluka ceiling.₹2.87 lakh
Up to, if every scheme applies₹5.14 lakh
These are separate schemes with their own rules. Many states do not pay their capital subsidy on the same cost that PMEGP already covers, and every subsidy is paid only after approval. Confirm the combination at your District Industries Centre.
Also in this state
- SGST refund: The VGIP 2026 MSME scheme has no SGST reimbursement. Only units under the older Aatmanirbhar Gujarat scheme (production before 01.06.2026, or opted in) get net SGST reimbursement. Source ↗
- Stamp duty: 100% stamp duty and registration reimbursement only for selected thrust-sector MSMEs (sports goods, toys, footwear, robots, drones) on land bought or leased in the investment period. Source ↗
- Electricity duty: Electricity duty exemption as per the Gujarat Electricity Duty Act 1958. Power tariff subsidy ₹2 per unit (Category A) or ₹1 per unit (Category B) for 5 years, up to 25% of eligible investment. Source ↗
- EPF reimbursement (VGIP 2026 MSME scheme): 100% of the employer's EPF share for new employees for 5 years, up to ₹1,800 (man), ₹2,500 (woman) or ₹3,000 (person with disability) per month. Source ↗
- Rent, CGTMSE and power connection support: Rent: 65% (75% if fully women-owned), up to ₹3 lakh a year for 5 years. CGTMSE guarantee fee 100% for 5 years. New power connection 35% up to ₹5 lakh. Manufacturing only. Source ↗
- Quality, patent and technology support: Quality certification 50% up to ₹10 lakh; ZED 50% up to ₹50,000; patents 75% up to ₹25 lakh; technology acquisition 65% up to ₹50 lakh; Industry 4.0 equipment 65% up to ₹5 lakh. Source ↗
- Gujarat Textile Policy 2024: Textile units: capital subsidy up to 35% of eligible investment for garments/technical textiles and 20% for weaving/processing in Category 1 talukas (lower in Category 2 and 3), only with a term loan; interest subsidy 7%; power ₹1 per unit for 5 years. Source ↗
Where this work already happens
- Bhuj and Ajrakhpur — Ajrakh printing, bandhani, embroidery and woven shawls
- Patan — Double ikat patola silk sarees
- Jamnagar — Bandhani tie-dye textiles
Land and sheds
- State land agency: Gujarat Industrial Development Corporation (GIDC) ↗
- Plot portal: GIDC e-governance portal (plots, sheds, allotment letters); applications via Investor Facilitation Portal ↗
Free government help in this state
61 offices: District Industries Centres, MSME offices and more
Gujarat