Capital, interest and power tariff support for MSMEs in Gujarat, with extra help for thrust sectors
Gujarat industrial policy and MSME assistance
The Industries and Mines Department's Resolution No. IMD/WRT/e-file/9/2026/2630/CH of 25 September 2026 sets the MSME assistance scheme under the Viksit Gujarat Industrial Policy 2026. It runs from 1 June 2026 to 31 May 2031. We read it on the MSME Commissionerate's site. Whether your taluka is Category A or B is set by a separate resolution of the department, so check your taluka there.
New manufacturing MSMEs in Gujarat, and existing ones that expand or diversify, with plant and machinery up to ₹2.5 crore (micro), ₹25 crore (small) and ₹125 crore (medium)
- Capital subsidy of 35 per cent of eligible fixed capital investment in Category A talukas and 25 per cent in Category B. Micro units get it in one year, small and medium units over five years
- Interest subsidy of 7 per cent on term loans for five years, up to 10 per cent of eligible investment, with 1 per cent more for women, registered manufacturing start-ups and first-generation entrepreneurs. The unit still bears at least 2 per cent of the interest
- Power tariff support of ₹2 a unit in Category A and ₹1 in Category B for five years, up to 25 per cent of eligible investment
- All three together are capped at 45 per cent of eligible investment in Category A and 35 per cent in Category B over five years
- For sports goods, toys, footwear, robots and drones: capital subsidy of 35 and 30 per cent, interest subsidy up to 20 per cent of investment, the same power tariff rates up to 20 per cent of investment, an overall cap of 50 and 45 per cent, and extras such as 100 per cent stamp duty and registration reimbursement on land
- Reimbursement of the employer's EPF contribution for new staff for five years, up to ₹1,800 a month per man, ₹2,500 per woman and ₹3,000 per person with a disability
- Support for an ERP system (65 per cent, up to ₹1 lakh), ICT and Industry 4.0 (65 per cent, up to ₹5 lakh), quality certification (50 per cent, up to ₹10 lakh), ZED certification (50 per cent, up to ₹50,000), technology acquisition (65 per cent, up to ₹50 lakh) and patents (75 per cent, up to ₹25 lakh)
- Energy and water audits (75 per cent, up to ₹50,000) and savings equipment (25 per cent, up to ₹20 lakh), SME exchange listing (25 per cent, up to ₹5 lakh), the CGTMSE guarantee fee (100 per cent for five years) and power connection charges outside GIDC estates (35 per cent, up to ₹5 lakh)
- Rent for a rented or leased shed: 65 per cent (75 per cent for wholly women-owned units), up to ₹3 lakh a year for five years
- Commercial production must start within the scheme period. Assets count only if bought and paid for from 1 January 2026
- Investment must finish within 12 months of starting production (plant and machinery up to ₹50 crore) or 18 months (₹50 crore to ₹125 crore)
- At least 85 per cent of staff must be Gujarat residents, and at least 60 per cent of managers and supervisors
- A GPCB certificate where it applies, and no other state scheme used for the same investment
- Units that began production before 1 June 2026 stay under the earlier Aatmanirbhar Gujarat scheme of 2022
Apply to the MSME Commissionerate or your District Industries Centre for a provisional or final eligibility certificate within six months of starting production or of the resolution, whichever is later. The Commissionerate links the state's incentive portal, ifp.gujarat.gov.in.