The Gujarat government has revised the investment thresholds that determine whether an industrial unit is classified as micro, small, medium, large, mega, or ultra mega under its upcoming industrial policy. This move aims to make the state more attractive to investors and align classifications with current costs.
Revised Classifications
The draft policy, expected to be unveiled next week, introduces a new category called ultra mega. Officials say this is intended to widen the pool of projects eligible for incentives. According to senior government sources, the revised classifications reflect the sharp rise in the cost of land, machinery, and infrastructure over the years.
Under the draft policy, Gujarat has aligned its definitions for micro, small, and medium enterprises (MSMEs) with national norms. Industries investing up to Rs 2.5 crore will now be classified as micro units, up from the existing threshold of Rs 1 crore.
The definition of a small industry has also been expanded significantly. While units investing between Rs 1 crore and Rs 10 crore currently fall under the small category, the proposed policy places industries investing between Rs 2.5 crore and Rs 25 crore in this bracket.
Similarly, the medium category has been revised upward. At present, industries investing between Rs 10 crore and Rs 50 crore are considered medium enterprises. Under the new framework, the category will cover investments ranging from Rs 25 crore to Rs 125 crore.
The definition of a large industry has also changed. Instead of the current threshold of more than Rs 50 crore, industries investing more than Rs 125 crore will now be classified as large units.
Mega Category Changes
One of the most significant changes comes in the mega category. The investment threshold has been reduced from Rs 2,500 crore under the existing policy to Rs 1,000 crore in the proposed one. Officials said the earlier benchmark was so high that relatively few projects qualified for mega status. Lowering the threshold will allow industries investing Rs 1,000 crore or more to access benefits and incentives that were previously available only to much larger projects.
Focus on Skilling
The draft policy also seeks to strengthen Gujarat’s skilling ecosystem by substantially increasing support for workforce development and technical training. Capital and operational assistance for anchor institutes that train trainers has been doubled from Rs 5 crore to Rs 10 crore. The policy further proposes incentives for industries that launch short-term bridge courses and specialised skill development centres aimed at enhancing technical competence and industry-ready manpower.
Government officials believe the twin focus on investment facilitation and skill development will help create a stronger pipeline of projects and trained workers as Gujarat competes for fresh industrial investments.
