In a major policy intervention to reinforce grassroots industrial growth and position domestic enterprises for global competitiveness, the Industries & Mines Department, Government of Gujarat, has officially notified the Scheme for Assistance to MSMEs under the Viksit Gujarat Industrial Policy – 2026 (Resolution No. IMD/WRT/e-file/9/2026/2630/CH). Operative retrospectively from June 1, 2026, through May 31, 2031, the five-year policy framework establishes targeted financial subsidies, technology adoption grants, infrastructure support, and employment incentives designed to advance the national vision of Atmanirbhar Bharatand Viksit Bharat @ 2047.
Under the revised criteria, micro enterprises are defined by gross fixed capital investments (GFCI) in plant and machinery up to ₹2.5 crore, small enterprises between ₹2.5 crore and ₹25 crore, and medium enterprises between ₹25 crore and ₹125 crore across all domestic facilities. Eligible new units and existing units undertaking substantial expansion or diversification can avail of tailored combinations of capital subsidies, interest subvention, and power tariff relief across Category-A and Category-B talukas. For general sectors, capital assistance reaches up to 35% of Eligible Fixed Capital Investment (EFCI), supported by 7% interest subvention on term loans and power tariff reimbursements of up to ₹2 per unit, subject to cumulative five-year ceilings of 45% (Category-A) and 35% (Category-B). An additional 1% interest subsidy is extended to women entrepreneurs, registered manufacturing startups, and first-generation founders.
To accelerate industrial diversification, the policy accords special status to identified Selected Thrust Sectors—including sports goods, toys, footwear, robotics, and drone manufacturing. Eligible thrust units receive elevated incentive ceilings of up to 50% of EFCI, alongside 100% reimbursement of stamp duty and registration fees, up to ₹1 crore in Intellectual Property Rights (IPR) support, technology acquisition subsidies up to ₹1 crore, international certification reimbursements up to ₹5 crore, and creative design studio development grants up to ₹5 crore. A pioneering provision also provides micro-enterprises and artisans in thrust verticals with an 80% subsidy on artificial intelligence (AI) subscription fees (up to ₹1 lakh per annum for three years).
Beyond capital asset creation, the scheme introduces structured operational backing, comprising 100% employer EPF contribution reimbursements for new hires (capped between ₹1,800 and ₹3,000 per employee monthly), ERP installation grants up to ₹1 lakh, Industry 4.0/ICT infrastructure assistance up to ₹5 lakh, and full annual service fee waivers on collateral-free term loans under CGTMSE for five years. All beneficiary enterprises are required to maintain at least 85% domiciled Gujarati employment overall and a minimum of 60% in managerial and supervisory capacities.
The implementation and regulatory interpretation will be steered by a State Level Empowered Committee (SLEC) chaired by the MSME Commissioner, ensuring transparent administration, expedited project approvals, and robust industrial governance across Gujarat.
Written by: Pragna Biswas
Graphics by: Pramit Hazra
