Diplomatist Magazine Diplomatist January 2019 | Page 25

IN FOCUS
interest subvention plan is aiding in the promotion of small
industries in the state.
Jyoti Gramodyog Vikas Yojana (JGVY) is another
fl agship programme of the government which is creating self-
employment by leveraging margin money subsidy plans. The
focus of the programme is to provide a technological edge to
the cottage and rural industries to enhance the quality of the
product and increase their productivity.
Information Technology Policy
A slew of measures including fi nancial incentives and
rebates is giving a fi llip to the IT industry in the state.
The scheme to provide the capital subsidy on the purchase
of computers and other related hardware to the ceiling of Rs
1 crore is helping in attracting new investors. Further, special
incentives are provided to the MSME sector on the purchase
of land developed by the GIDC.
The eligible IT/ITES companies are taking the benefi t
of the complete reimbursement of the stamp duty and
registration fees on the sale and transfer of the land and offi ce
space which is hugely becoming very popular in promoting
Gujarat as an investment destination.
The interest subsidy on loans is another shot in the arm
of the investors who often complain about the higher interest
rates dissuading them from the investment.
Tourism Policy
The state of Gujarat is a major tourist destination with
picturesque locations which records a high tourists’ footfall
annually.
Further with the aim to develop the tourism infrastructure,
the state government seeks to encourage private investment
through providing various incentives.
The hotels, resorts, Tourism and Hospitality Training
Institutes among others are eligible for the capital subsidy
of 15 percent for the investment of 50 crores or above with
a maximum ceiling of 7.5 crores and 10 crores respectively.
Interest subsidy of fi ve percent and seven percent is also
available for the loan to the tourism units in the municipal
corporation areas and the heritage hotels respectively. Apart
from which there is a complete exemption of the stamp duty,
luxury tax, entertainment tax, electricity duty for the investors.
The government is also developing the
agri-clusters and cold storage for the value
addition and preserving the agri products.
Agro-Business Policy
The policy which started in 2016 is helping Gujarat in
exploring the untapped potential of the sector by increasing
the investment through various incentives and promotional
schemes.
The state gives a capital investment subsidy of 25 percent
to investors on setting or diversifying the agro-based industry,
cold-chains and primary processing centres with various
ceilings. The government is also developing the agri-clusters
and cold storage for the value addition and preserving the
agri products.
The promotion of agricultural marketing along with
providing an opportunity to exploit the full export potential
of the agricultural products is making Gujarat an attractive
investment destination.
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 1 • January 2019, Noida • 25