§1Policies

§2Incentive pattern

Capital subsidyCat A 35% / Cat B 25% of eFCI

Micro paid in year 1; small/medium over 5 years; within overall ceiling 45% (A) / 35% (B) of eFCI

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
Interest subsidy7% on term loan for 5 years up to 10% of eFCI

+1% for women, registered manufacturing startups, first-generation entrepreneurs; unit bears at least 2%

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
Power tariffRs 2/unit (A) or Rs 1/unit (B) for 5 years up to 25% of eFCI

DISCOM or open-access renewable power; not captive

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
Electricity duty100% exemption as per Gujarat Electricity Duty Act 1958

Policy text and MSME GR para 18

Viksit Gujarat Industrial Policy 2026 (Industries Commissionerate)
EmploymentEPF 100% of employer contribution for 5 years (MSME)

Up to Rs 1,800 (male), Rs 2,500 (female), Rs 3,000 (specially abled) per month

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
Stamp duty100% stamp duty & registration reimbursement only for selected thrust MSMEs (and Ultra-Mega units)

Land purchase/lease in eligible investment period; after DoCP

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
Patent & qualityPatent 75% up to Rs 25 lakh; quality cert 50% up to Rs 10 lakh; ZED 50% up to Rs 50,000

Selected thrust: IPR 75% up to Rs 1 crore; international certification 100% up to Rs 5 crore

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
OtherRent 65% (75% women) up to Rs 3 lakh/yr; CGTMSE fee 100% for 5 years; power connection 35% up to Rs 5 lakh

Manufacturing only

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs

§3State schemes

More incentives in the policy (12)

Name and benefit are from the policy; the full conditions are not on this page yet — see the policy document.

  • VGIP 2026 — Support for StartupsSustenance allowance Rs 25,000/month for 1 year (Rs 30,000 with woman co-founder); seed support up to Rs 50 lakh in total; +1% interest subsidy up to 9%
  • VGIP 2026 — Empowered Women for a Viksit GujaratAdditional 1% interest subsidy; rental assistance 75% of rent (cap as per scheme)
  • VGIP 2026 — Housing for Workforce (dormitory / labour / women's hostels)Common hostels 80% of project cost up to Rs 40 crore; industry/private-park hostels 40% up to Rs 40 crore
  • Dr. Babasaheb Ambedkar Scheme & Bhagwan Birsa Munda Scheme (SC/ST MSMEs, VGIP 2026)SC/ST entrepreneurs get additional 5% of overall incentive ceiling
  • VGIP 2026 — Environmental infrastructure support50% up to Rs 1 crore for MSMEs (environment projects; details per scheme GR)
  • Mukhyamantri Udyog Rojgar Sahay Yojana (internship/skilling)Industry internships for students lacking structured internships
  • Dr. Babasaheb Ambedkar Udyog Uday Yojana (SC/ST MSMEs, Industrial Policy 2020)SC/ST units: capital subsidy up to 30% of term loan (Cat 1, max Rs 40 lakh), interest 8% (Cat 1, max Rs 35 lakh/yr, 7 yrs), 70% of GIDC plot/shed price
  • Scheme for Assistance for Start-ups/Innovation (2020)Sustenance Rs 20,000/month (Rs 25,000 with woman co-founder), seed support Rs 30 lakh
  • Mukhyamantri Yuva Swavalamban YojanaEducation support scheme (not an industry incentive)
  • Cluster Development Scheme (Cottage & Rural Industries)Diagnostic survey, design development, training and common facilities for artisan clusters
  • Jyoti Gramodyog Vikas YojanaRural self-employment support via KVIB (rates not confirmed)
  • Bankable Scheme (Cottage Industries)Bank-linked loan with subsidy for cottage/self-employment units (rates not confirmed)

§4District zones

In many states the subsidy rate changes with the zone of the district or block.

ZoneCategory A talukas (130 talukas, VGIP 2026)

MSME combined ceiling 45% of eFCI over 5 years (50% for selected thrust sectors). Micro capital subsidy 35% of eFCI in year 1; small/medium 35% over 5 years; interest 7% for 5 years up to 10% of eFCI; power tariff Rs 2/unit for 5 years up to 25% of eFCI

Ahmedabad: Dholera, DetrojRampura, Dhandhuka · Amreli: Khambha, Dhari, Lilia, Savar Kundla, Babra, Kunkavav Vadia, Lathi · Anand: Tarapur, Anklav, Sojitra · Arvalli: Dhansura, Malpur · Banas Kantha: Amirgadh, Danta, Dhanera, Kankrej, Vadgam, Dantiwada, Hadad (Danta), Ogad (Kankrej) · Bharuch: Netrang · Bhavnagar: Jesar, Umrala, Vallabhipur, Gariadhar, Palitana, Talaja, Ghogha · Botad: Ranpur, Gadhada, Barwala, Botad · Chhota Udepur: Chhota Udepur, Kavant, Nasvadi, Sankheda, Bodeli, Jetpur Pavi, Kadval (Jetpur Pavi) · Devbhumi Dwarka: Kalyanpur, Bhanvad · Dahod: Dhanpur, Sanjeli, Limkheda, Dahod, Fatepura, Jhalod, Singvad, Garbada, Devgadbaria, Sukhasar (Fatehpura), Guru Govind Limbdi (Jhalod) · Gir Somnath: Gir Gadhada, Talala · Jamnagar: Jodiya · Junagadh: Bhesan, Mendarda · Kachchh: Rapar, Nakhatrana, Lakhpat, Mandvi · Kheda: Galteshwar, Matar, Vaso, Mahudha · Mehsana: Satlasana, Jotana, Kheralu, Becharaji, Vadnagar · Mahisagar: Khanpur, Kadana, Virpur · Morbi: Maliya · Narmada: Garudeshwar, Dediapada, Tilakwada, Sagbara, Chikda (Dediapada) · Navsari: Khergam · Panch Mahals: Ghoghamba, Morwa (Hadaf), Jambughoda, Shehera · Patan: Sarasvati, Santalpur, Shankheshwar, Sami, Radhanpur, Harij · Porbandar: Kutiyana · Rajkot: Vinchhiya, Jamkandorna · Sabar Kantha: Poshina, Vijaynagar, Khedbramha · Surat: Umarpada, Mahuva, Ambika (Mahuva) · Surendranagar: Lakhtar, Chuda, Muli, Sayla, Limbdi, Dasada, Chotila · Tapi: Kukarmunda, Uchchhal, Nizar, Dolvan, Songadh, Ukai (Songadha) · The Dangs: Subir, Waghai, Aahva · Vadodara: Sinor, Desar · Valsad: Kaprada, Dharampur, Nanapodha (Kaprada, Vapi, Pardi) · Vavtharad: Lakhani, Suigam, Vav, Tharad, Deodar, Dharnidhar (Vav), Rah (Tharad)

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
ZoneCategory B talukas (138 talukas, VGIP 2026)

MSME combined ceiling 35% of eFCI over 5 years (45% for selected thrust sectors). Capital subsidy 25% of eFCI (30% thrust); interest 7% for 5 years up to 10% of eFCI; power tariff Rs 1/unit for 5 years up to 25% of eFCI

Ahmedabad: Viramgam, Daskroi, Bavla, Dholka, Sanand, Mandal, Ahmedabad City · Amreli: Jafrabad, Rajula, Bagasara, Amreli · Anand: Anand, Umreth, Khambhat, Petlad, Borsad · Arvalli: Meghraj, Bayad, Bhiloda, Modasa, Shamalaji (Bhiloda), Sathamba (Bayad) · Banas Kantha: Deesa, Palanpur · Bharuch: Bharuch, Jhagadia, Vagra, Anklesvar, Hansot, Valia, Jambusar, Amod · Bhavnagar: Bhavnagar, Mahuva, Sihor · Devbhumi Dwarka: Khambhalia, Okhamandal · Gandhinagar: Kalol, Dehgam, Gandhinagar, Mansa · Gir Somnath: Una, Kodinar, Sutrapada, Veraval · Jamnagar: Lalpur, Jamnagar, Jamjodhpur, Kalavad, Dhrol · Junagadh: Junagadh, Junagadh City, Visavadar, MaliaHatina, Mangrol, Vanthali, Manavadar, Keshod · Kachchh: Mundra, Anjar, Gandhidham, Abdasa, Bhachau, Bhuj · Kheda: Kheda, Nadiad, Mehmedabad, Kathlal, Thasra, Kapadvanj, Fagvel (Kathalal and Kapadvanj) · Mehsana: Kadi, Mehsana, Unjha, Vijapur, Visnagar · Mahisagar: Lunawada, Balasinor, Santrampur, Godhar (Santrampur, Shehra), Kothamba (Lunavada) · Morbi: Wankaner, Morbi, Tankara, Halvad · Narmada: Nandod · Navsari: Navsari, Bansda, Chikhli, Jalalpore, Gandevi · Panch Mahals: Halol, Kalol, Godhra · Patan: Sidhpur, Chanasma, Patan · Porbandar: Porbandar, Ranavav · Rajkot: Paddhari, Lodhika, Rajkot, Kotda Sangani, Jasdan, Upleta, Dhoraji, Jetpur, Gondal · Sabar Kantha: Talod, Vadali, Idar, Prantij, Himatnagar · Surat: Mangrol, Kamrej, Palsana, Chorasi, Olpad, Surat City, Mandvi, Bardoli, Areth (Mandvi) · Surendranagar: Wadhwan, Thangadh, Dhrangadhra · Tapi: Vyara, Valod · Vadodara: Vaghodia, Karjan, Padra, Savli, Vadodara, Dabhoi · Valsad: Valsad, Pardi, Vapi, Umbergaon · Vavtharad: Bhabhar

GR No. IMD/WRT/e-file/9/2026/2630/CH dated 25/09/2026 — Viksit Gujarat Industrial Policy-2026, Scheme for assistance to MSMEs
ZoneTextile Policy 2024 — Category 1/2/3 talukas (older classification under GR dated 02.11.2020) + PM MITRA Park

Capital subsidy Activity-1: Cat 1 & PM MITRA 35% of eFCI (max Rs 100 crore), Cat 2 30% (Rs 100 crore), Cat 3 20% (Rs 50 crore); Activity-2: 20%/18%/10% (max Rs 50/50/40 crore). Interest Activity-1: 7% for 8 yrs (max 3% / 2.5% of eFCI p.a.), Cat 3 5% for 6 yrs (2%); Activity-2: 7% for 7 yrs, Cat 3 5% for 5 yrs (max 2% of eFCI p.a.)

List is in GR MIS-102020-347965-1 dated 02.11.2020 — see the official guideline. in this pass

Gujarat Textile Policy 2024 — GR No. IMD/WRT/e-file/9/2023/2817/CH dated 15/10/2024

Schemes for some districts only

  • PM MITRA Park — treated like Category 1 under Textile Policy 2024PM MITRA Park location not named in the GR read

→Industrial land in this stateAgency, portal, allotment, lease

§5Famous for

§6Choose your district

For each district: its ODOP product, its subsidy zone and the schemes that run only there.

§7Focus sectors & ODOP

Thrust: green energy ecosystem (green hydrogen/ammonia, electrolysers, RE equipment, battery storage, fuel cells)Mobility (auto & components, aviation, space)Capital equipment (electrical, industrial, telecom machinery)Textiles & apparel (technical textile)Critical minerals, metals, ceramicsWaste-recycling equipmentChemicalsAgro & food processingHealthcare (bulk drugs/APIs/KSMs, medical devices, pharma)Semiconductor ancillariesNuclear power equipment (incl. SMRs)Vehicle scrapping, e-waste & textile-waste recycling, shipping containers, heavy earth-moving equipmentSelected thrust: sports goods, toys, footwear, robots, drones

ODOP / clusters2 entries

ODOP list not published in VGIP documents read — gap

  • ODOP list not published in VGIP documents read — gap
  • GIDC estates, Dholera SIR and PM MITRA Park referenced in policy and textile GR

§8Why do business here — and why not

Merits

  • Micro units can take the whole capital subsidy in year 1 (VGIP MSME GR 4.2)
  • EPF reimbursement 100% of employer share for 5 years for MSMEs (GR 7)
  • Clear taluka list: 130 Category A and 138 Category B talukas (GR 08-09-2026)

Demerits

  • 85% Gujarat-domicile workforce rule for core subsidies (GR 5.4)
  • Strict 6-month filing deadlines; claims beyond 2 years rejected (GR 21)
  • Most industrial cities (Ahmedabad City, Surat City, Vadodara, Rajkot, Vapi) are Category B with lower ceilings (Taluka GR)

Still being researched

We could not confirm these points from an official source, so no figure is printed on the page.

Open items5 points pending
  • VGIP 2026 schemes for startups, women, environment and services — separate GRs — see the official guideline.
  • Full documents checklist for VGIP MSME scheme (to be issued by MSME Commissioner) not found
  • Textile Policy 2024 Category 1/2/3 taluka list (GR 02.11.2020) — see the official guideline.
  • ODOP / district cluster list not found
  • Gujarat Electricity Duty exemption period not specified in docs read