Gujarat plans major revision of MSME investment limits in new industrial policy

GANDHINAGAR : Gujarat is preparing to update the definition and investment turnover limits for MSMEs and large industries under its new industrial policy, due in early 2026.

The changes are intended to draw more industries to the state and boost its appeal as a competitive manufacturing hub.

According to officials, both investment and turnover limits for MSMEs are likely to be increased significantly. The revision is intended to ensure that more units qualify for higher incentives, reported TOI.

The investment limit for micro industries may rise from the current Rs 1 crore to Rs 2.5 crore, for small industries from Rs 10 crore to Rs 25 crore, and for medium industries from Rs 50 crore to Rs 125 crore.

Similarly, turnover limits may be doubled to Rs 10 crore for micro units, Rs 100 crore for small units and Rs 500 crore for medium units.

According to officials, the revisions are meant to offset inflation and enhance Gujarat’s incentive structure, ensuring more enterprises become eligible for state subsidies and benefits.

For large industries, the state is considering increasing the maximum incentive from Rs 2,500 crore to Rs 10,000 crore. Sectors identified under the central government’s upcoming Production-Linked Incentive (PLI) schemes will automatically be treated as sunrise sectors in the new policy.

The government also plans to extend the Atmanirbhar Gujarat Scheme for Large and Thrust Sector Industries until 2030, aligning it with the tenure of the forthcoming industrial policy.

The scheme currently supports 14 sectors including pharmaceuticals, automobiles, electronics, telecom and textiles.

The new industrial policy is expected to play a pivotal role in strengthening Gujarat’s position as a leading investment destination.