State Policy

The discovery of gas reserves in the state and the opening of the Indian economy have presented Gujarat with a wide array of business opportunities. The state is keen to become a preferred destination for foreign direct investment (FDI) and is consciously developing a brand synonymous with cost effectiveness and unparalleled quality. The Government's policy framework is geared towards further developing the entrepreneurial spirit in the state, facilitating new industries, investment and developing an excellent support system by upgrading its existing infrastructure.

Gujarat's Industrial Policy focuses on the following areas:

• Strengthening the existing manufacturing base by creating new industrial clusters

• Creating and sustaining a global brand image for Gujarat and its products

• Ensuring holistic development and removing regional imbalances

• Upgrading existing urban and industrial infrastructure

• Initiating labour law and power reforms

• Effective governance and information dissemination with a focus on enabling entrepreneurs

• Undertaking suitable measures for the development of human resources through capacity building and skill upgradation for enhancing productivity

Gujarat is keen to encourage investment in agro industries, agro infrastructure and hi-tech agriculture. The state's Agro Policy aims to create a world-class supply chain to facilitate transfer between the centres of cultivation and agro-processing zones. It proposes to encourage agro-research through institutes such as Gujarat's Agriculture University.

The state has taken a number of measures to double its agro-processing capability. These include setting up food parks, agro-processing zones of international standards and agro-export zones to provide impetus to the export of perishables.

To develop large-scale cold storages the state uses LNG available at Dahej and Hazira, which is more cost effective.

Gujarat is encouraging new industrial clusters and offering specialised facilities to business units. The State Government offers policy incentives to companies undergoing technology upgradation, modernisation and expansion, and encourages linkages between industry and R&D centres. It also encourages quality certifications and patent registration by giving financial assistance for these activities.

Gujarat is one of the first states to privatise infrastructure development and has built a number of roads and ports through public-private partnership.

The state plans to enhance its ports infrastructure to handle a gross capacity of 100 million tonnes of cargo. To encourage coastal shipping of passengers and cargo, the state intends to introduce a hovercraft/catamaran service joining different terminals along the Kutch and Saurashtra coast.

The state plans to develop Ahmedabad and Surat as international airports that would be hubs for transporting high volume cargo. Airports at Vadodara and Jamnagar are to operate as spokes, attracting and disseminating local cargo.

The State Government has outlined a number of policy initiatives to encourage entrepreneurs. These include:

•  iNDEXTb (Industrial Extension Bureau) and District Industries Development Centres, which will serve as single window facilities at the state and district levels respectively

• Fast-track clearances for infrastructure projects from the Gujarat Infrastructure Development Board

• Implementation of IT in governance to make governance transparent and streamlined in the state

• Tax reforms with a particular emphasis on rationalisation, simplification, self-assessment, transparency and harmonisation of the rate structure

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