Gujarat is the latest Indian state to acknowledge PM Narendra Modi’s call to self-reliance through Atmanirbhar Bharat with its very own Industrial Policy 2020. Vijay Rupani, the state’s chief minister, said this was a push towards ‘Atmanirbhar Gujarat’.
The Industrial Policy 2020 conceptualises sectors categorising them in two major groups of Core sectors and Sunrise sectors. Core sectors include areas where Gujarat already has a strong manufacturing base and has the potential to accelerate further on a global scale. Sunrise sectors are sectors which have a significant potential for technological advancement and can contribute to sustainable economic development.
Furthermore, the policy de-links incentives from state GST. It provides up to 12 per cent of fixed Capital investment which will be given to large industries for setting up manufacturing operations in the state in the form of capital subsidy, and Gujarat becomes the first state to do so.
Sources said the new industrial policy would provide incentives to reduce land costs for industries. Thrust sectors like electric machinery and equipment, auto and auto components, ceramics and pharmaceuticals have been identified by the government to be given additional incentives.
“Focused efforts have been made for supporting jobs, value addition across sectors, adoption of state-of-the-art technology, increase productivity with Industry 4.0 manufacturing, innovation-driven ecosystem with a focus on research and development so as to propel the state further towards Atmanirbhar Gujarat,” Rupani said. “This will enable the shaping of a Modern Gujarat that spearheads the vision of a Modern India.”
Rupani said the Industrial Policy would also promote MSMEs to make domestic MSMEs globally competitive. The government will back MSMEs in up-gradation of technologies, adopting globally accepted certifications and in marketing their products internationally.
Last month, Gujarat’s Industrial Extension Bureau (iNDEXTb), Industries and Mines Department had signed an MOU with the UK India Business Council intending to boost business and industrial development in the state. Not to be held back by the COVID-19 pandemic, Gujarat has been working proactively to enhance the state’s business environment and industries.