‘Gujarat has been a favorite state for foreign investors’

What is the state doing to attract more investments in terms of providing infrastructure and ease of doing business?

Historically, Gujarat has always been the preferred state for foreign investors. Gujarat has successfully received the most foreign investment in the last three consecutive years when the global economy was really struggling. Gujarat achieved 240% more foreign direct investment (FDI) during FY20 as compared to the previous year and continued the growth trajectory in the next fiscal when the state’s FDI jumped 3.8 times in FY20.

If you look at the reasons behind this achievement, it is largely due to our industry-friendly policies, transparent administrative setup and commitment to development. We have created a business friendly environment through our single window system, which helps a lot to the investors. Around 800,000 applications have been processed so far through this Investor Facilitation Portal. Apart from this, we have also provided a ‘Relationship Manager’ facility for our investors so that their queries as well as approvals can be processed faster.

To further improve the ease of doing business in the state, a framework has been prepared in the form of mega permissions, under which 26 types of approvals and compliance are being provided in a single application. To further strengthen this momentum and increase the current growth rate, our government has also implemented the New Gujarat Industrial Policy 2020 in the state. This policy will play a very important role in fulfilling the resolve of ‘Self-reliant India’. We have taken care of all those aspects in this policy which are necessary for the self-reliance of Gujarat and the country.

The main focus of this industrial policy is to move towards a global industry hub based on inclusive and balanced regional growth, job creation and Industry 4.0.

What about tax incentives?

Under the Industrial Policy 2015, the state government had decided to assist in reimbursement of net SGST as a general incentive scheme with balanced regional development and inclusive growth. As part of our latest Industrial Policy of 2020, we took a bold decision by becoming the first state to de-link incentives from SGST. Also, fixed capital investment up to 12% is being given as capital subsidy to large industries for setting up manufacturing operations in the state. That’s why we are already well ahead in providing incentives and will continue to do so as long as it benefits the state and its people.

Is the new industrial policy on the cards to boost investment and growth?

Gujarat is a policy-driven state, and hence we implemented the new industrial policy in 2020. We introduced this to take clear advantage of the changes in the global environment due to the pandemic.

The Industrial Policy 2020 focuses on key areas, strengthening the integrated value chain, innovation and research. It was aimed at promoting sustainable and clean manufacturing, innovative Industry 4.0 practices and encouraging entrepreneurship and growing Micro, Small and Medium Enterprises (MSMEs). So so far, our current policy is performing well, and we are flexible enough to incorporate changes in the future if the situation so demands.

Gujarat is continuously promoting ‘Self-reliant India’. What steps have been taken to make Gujarat self-reliant?

We aim to implement key strategies to achieve our goal of making ‘Gujarat Atmanirbhar’. Attracting more investments in the state, encouraging MSMEs and focusing on developing startups will be the major focus areas of our action plan.

Secondly, Gujarat is one of the top three states in India where MSMEs are growing at a rapid pace. Today, there are more than 500,000 MSMEs registered in the state. In addition, Gujarat was adjudged the best performing state in the ‘State Startup Rankings’ in the DPIIT report released in 2018 and 2019. This report indicates the proactive steps taken by our government to strengthen the startup ecosystem. Our beneficiary policies have also helped startups thrive over the years.