Export & Import - Exim Policy- Industrial Policy - States- Gujarat, India Finance & Investment Guide

Gujarat, lying in the north-west corner of India, is bounded by Pakistan on the north-west, Rajasthan on the north, on the east by M.P. and on the south and south-east by Maharashtra. Gujarat ranks first in the country in the production of cotton and groundnut and second in tobacco production. The government lends strong support to private investments including policy investment and flexibility on policy. It has maintained consistent policy towards encouraging outside investments.

The industrial base of Gujarat is highly diversified and has spread all over the State, thanks to policy planning since early sixties. The state that was largely dependent on agriculture then was brought under rapid industrialization process. Gujarat today accounts for a substantial share in production of various products in India, contributing almost 100% of Acrilonitrile, Cyanide Salts, PMMA, PP, Melamine, Sodium Bi-carbonate and Phosphorus and as much as over 80% of Soda Ash, Xylene, Elastomer and LDPE. The Gujarat government continues effort to identify new investment opportunities not only in the industrial sector, but in the infrastructure and service sectors as well.

Land area: 196,024 sq. km.
Population: 41.3 million
Capital: Gandhinagar
Per Capita Income: Rs 10,578
Inflation Rate: 9.7

Incentives:

Capital investment subsidy of between 15% and 20% (up to Rs 1,000,000) for small-scale units
100% EOUs exempted from purchase and sales taxes on capital goods procured within the state
Special incentives for the purchase of environment-friendly plant and machinery
Capital subsidies and sales tax incentives for electronics industries
7-year sales tax relief of up to 100% of fixed capital for Category 1; 5 years (80%) for Category 2
Sales tax deferment for 9 years for up to 125% of fixed capital for Category 1
Sales tax incentives for up to 17 years for premier units
Incentives on 50% of the total expenditure on social infrastructure