Gujarat Unveils Industrial Policy 2026 with Strong Focus on Textiles, Footwear and Sustainable Manufacturing
The Government of Gujarat has launched its Industrial Policy 2026, introducing a wide range of incentives designed to attract investments, strengthen manufacturing, encourage entrepreneurship, and position the state as a global hub for innovation-driven industrial growth. The policy targets investments worth ₹10 lakh crore (approximately US$105 billion) over the next five years.
Textiles, technical textiles, footwear, and textile waste recycling have been identified among the state’s priority sectors, reflecting Gujarat’s commitment to expanding its manufacturing ecosystem and supporting sustainable industrial development.
A key highlight of the policy is its support for startups and innovation. Eligible startups will receive monthly sustenance assistance, seed funding support, and special incentives for women entrepreneurs. Startups with women co-founders can receive monthly support of up to ₹30,000, along with seed funding assistance of up to ₹30 lakh.
The policy also places strong emphasis on the growth of Micro, Small and Medium Enterprises (MSMEs). Depending on their category and location, MSMEs can avail incentives covering 35% to 45% of their fixed capital investment through capital subsidies, interest subsidies, and power tariff reimbursements.
Large-scale industries operating in designated thrust sectors will be eligible for incentives ranging from 25% to 35%, while mega and ultra-mega projects may receive support of up to 40%. Selected sectors, including footwear manufacturing, can benefit from incentives reaching 50%.
To promote sustainable industrial practices, the government has included provisions supporting wastewater recycling facilities, Zero Liquid Discharge (ZLD) systems, cleaner production technologies, and shared environmental infrastructure. Industries adopting eco-friendly manufacturing processes will be eligible for financial assistance under these initiatives.
The policy further aims to improve industrial infrastructure and workforce welfare through support for worker housing, working women’s hostels, industrial parks, skill development centers, and Industry 4.0-ready facilities.
A notable feature is the introduction of Project THRIVE (Transition for Harmonized Relocation and Inclusive Vibrant Economy), which encourages industries operating in congested urban areas to relocate to emerging industrial zones. The initiative seeks to reduce pressure on urban infrastructure while fostering well-planned industrial ecosystems in new growth corridors.
Industries relocating under Project THRIVE will be treated as new units and will qualify for various incentives, including capital subsidies, wage support, housing assistance, infrastructure benefits, and regulatory relaxations.
With a strong focus on manufacturing, sustainability, innovation, and workforce development, Gujarat’s Industrial Policy 2026 is expected to create new opportunities for the textile, apparel, technical textile, and footwear sectors while enhancing the state’s position as a leading industrial destination in India.