The Viksit Gujarat Industrial Policy 2026 is in force. Five years, one basket, your choice of mix.

The state’s new industrial policy took effect today, 1 June 2026, and runs for five years. Its central idea is different from the schedules of fixed schemes that came before it: a unit chooses its own mix of three incentives, capital subsidy, interest subsidy and power tariff support, within an overall ceiling set by its size and the taluka it builds in.

The three components

• Capital subsidy: a percentage of eligible fixed capital investment, 25% to 35% for MSMEs depending on taluka category, 10% to 30% for large, mega and ultra-mega units.
• Interest subsidy: 7% a year for five years on the term loan, capped at 10% of eligible investment, in every band.
• Power tariff support: ₹1 or ₹2 per unit for five years (longer for large units), capped at 25% of eligible investment.

The overall ceiling for an MSME is 35% of eligible investment in a Category B taluka and 45% in Category A. Five special priority sectors, toys, sports goods, footwear, robotics and drones, get 45% and 50% respectively at any size.

Stacked on top

Outside the ceiling: 100% reimbursement of the employer’s EPF contribution for five years (MSMEs) to ten years (large and mega), 100% exemption from electricity duty, an extra 1% interest subsidy and rent support for women entrepreneurs, an extra 5% for SC/ST entrepreneurs, and stamp-duty and registration reimbursement for ultra-mega projects. Green measures such as zero-liquid-discharge and waste-water recycling carry their own 40% to 50% support.

Why the window matters for land

Incentives attach to a unit that commences within the policy period. Land bought in 2026 and built out in 2027 sits comfortably inside it. Land bought in 2029 for a unit that starts in 2032 does not. The corridor projects on this site, the expressway, the airport, the fab, are arriving in the same five years. That coincidence is the case for buying now rather than later.

Bhavnagar taluka was later notified Category B, on 8 September 2026. Our calculator uses the B figures by default. See the note on the GR.