Gujarat Government announces IT policy to promote IT-based start-ups

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The Gujarat government has announced its first ever IT and Electronics Start-up Policy with a special focus on encouraging startups by providing a slew of incentives and subsidies.

Features of Gujarat IT policy

⇒ The state government would develop 50 incubators to mentor and guide 2,000 start-ups in the next five years.

⇒ The Gujarat government will allot around 10 lakh sq feet of land for development of 50 incubators, which will provide guidance to budding innovators in setting up their start-up units.

⇒ Under the policy, the Gujarat government will provide 50 per cent capital investment assistance, in the limit of Rs 50 lakh, for setting up an incubator.

⇒ Incubators will be entitled to get Rs 5 lakh each year as mentoring assistance and the state government will also give Rs 1 crore as assistance for the procurement of software to these incubators. 

⇒ Under the policy, these incubators and new start-ups will get 100 per cent reimbursement of stamp duty and registration fees. 

⇒ To register their patents, government will give Rs 2 lakh as assistance for domestic registration and Rs 5 lakh for international patent registration.

⇒ Start-ups will be provided other incentives such as interest subsidy of 9% per annum in the limit of 2 lakh rupees per year, marketing assistance of 1 lakh rupees per start-up, product development assistance of 1 lakh rupees and lease rental subsidy of 15 rupees per square feet per month.

Industrial Development in Gujarat

Average annual gross state domestic product (GSDP) growth rate of Gujarat from 2004-05 to 2014-15 was 12.11 per cent.  It has achieved the distinction of being one of the most industrially developed states and contributes about a quarter to India’s goods exports.

Gujarat is a leader in industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewellery, textiles and engineering.

As of March 2015, Gujarat ranked second in the production of crude oil (onshore) in India. It accounts for around 72 per cent of the world’s share of processed diamonds and more than 80 per cent of diamonds processed in India.

The industrial sector comprises over 800 large industries and more than 453,339 micro, small and medium industries.There are 13 major industry groups in Gujarat that accounts for around 82.05 per cent of total factories, 95.85 per cent of total fixed capital investment, 90.09 per cent of the value of output and 93.21 per cent of value addition in Gujarat's industrial economy.

Initiatives taken by the government to promote Gujarat as an investment destination:

In budget 2015-16, state government has announced to invest USD 5.30 million For the development of industrial park, logistic park and a park for defence manufacturing units and USD 458.97 million for the growth of industrial sector of Gujarat.

Gujarat has well developed Industrial infrastructure. It has one major port and 44 non-major ports, Gujarat has the highest number of operational and commercial cargo ports in India.

The state government has approved interest subsidy at the rate of 6 per cent for three years for building godowns on the farms to boost storage capacity in the state. It has also allocated USD 1.49 billion for Narmada Yojana.

GDP of various states and Union Territories

Ranking  State/UT GDP
1. Maharashtra Rs. 16.8 lakh crore
2. Tamil Nadu Rs. 9.76 lakh crore
3. Uttar Pradesh Rs. 9.76 lakh crore
4. Gujarat Rs. 7.66 lakh crore
5. West Bengal Rs. 8.00 lakh crore
6. Karnataka Rs. 7.02 lakh crore
7. Rajasthan Rs. 5.7 lakh crore
8. Andhra Pradesh Rs. 5.20 lakh crore
9. Madhya Pradesh Rs. 5.08 lakh crore
10. Delhi Rs. 4.51 lakh crore
11. Kerala Rs. 3.96 lakh crore
12. Telangana Rs. 3.90 lakh crore
13. Haryana  Rs. 3.89 lakh crore
14. Bihar Rs. 3.43 lakh crore
15. Punjab Rs. 3.17 lakh crore
16. Odisha Rs. 2.72 lakh crore
17. Chhattisgarh Rs. 1.85 lakh crore
18. Jharkhand Rs. 1.73 lakh crore
19. Assam Rs. 1.59 lakh crore
20. Uttarakhand Rs. 1.23 lakh crore
21. Jammu & Kashmir Rs.  0.87 lakh crore
22. Himachal Pradesh Rs. 0.83 lakh crore
23. Goa Rs. 0.49 lakh crore
24. Chandigarh Rs. 0.29 lakh crore
25. Tripura Rs. 0.27 lakh crore
26. Meghalaya Rs. 0.22 lakh crore
27. Puducherry Rs. 0.21 lakh crore
28. Nagaland Rs. 0.18 lakh crore
29. Manipur Rs. 0.14 lakh crore
30. Arunachal Pradesh Rs. 0.14 lakh crore
31. Sikkim Rs. 0.12 lakh crore
32. Mizoram Rs. 0.1 lakh crore 
33. Andaman & Nicobar Islands Rs. 0.062 lakh crore
34. Dadra and Nagar Haveli Rs. 0.0244 lakh crore
35. Daman and Diu  Rs. 0.01059 lakh crore
36. Lakshadweep Rs. 0.00407 lakh crore

 

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