Explained: How Gujarat’s new industrial policy seeks to make the state a global R&D hub

The Gujarat government aims to position the state as a global research and development (R&D) hub by providing a slew of incentives and financial assistance to industry for intellectual property rights and patents.

These initiatives, mentioned in the Viksit Gujarat Industrial Policy 2026, unveiled last week, would be in the form of CAPEX (capital expenditure) and OPEX (operating expenditure) support and financial assistance for intellectual property rights and patents.

A defining pillar of the policy is its strong emphasis on innovation-led growth with a clear vision to make Gujarat a global hub for research and development, a government statement said after the policy was released in Gandhinagar by Chief Minister Bhupendra Patel in the presence of Deputy Chief Minister Harsh Sanghavi. Special incentives are envisaged for R&D centres establishing operations in the State to provide a strong initial stimulus and global visibility, it said.

“Incentivising research and development will create an ecosystem for new-age industries to grow in the state. The state will reap huge benefits of incentivising R&D activities,” Sanghavi, who is also state industries minister, said at the launch of the policy.

Incentives to first 5 R&D centres

Early bird incentives applicable to first 5 R&D centres with a minimum investment of ₹300 crore include:

1. CAPEX support of 50 per cent capital subsidy for building, machinery & equipment in 5 years up to ₹50 Crore per annum.
2. A reimbursement of 25 per cent of allotment price (GIDC/Dholera/Govt. Land) or 25 per cent of Jantri rate in case of private land, in addition to power tariff and payroll subsidy.
3. The R&D centre will also be eligible for IPR and patent support for a period of 10 years.
4. Other R&D centres with a minimum investment of ₹100 crore will receive capital subsidy of up to ₹20 crore on building, machinery and equipment in five years.
5. Operating expenses (OPEX) support will be provided to R&D centres in the form of power tariff at Re 1 per unit for a period of five years and a payroll subsidy of ₹10,000 per person per month for a period of three years.
6. R&D centres established under the new policy will also get 100 per cent reimbursement of up to ₹10,000 per IPR (intellectual property right) filed for a period of 10 years and 75 per cent of cost of up to ₹15 lakh per patent for a total of 25 patents over a period of 10 years.
7. Other R&D centres with a minimum investment of ₹100 crore will receive a capital subsidy of up to ₹20 crore on building, machinery and equipment in five years.

Towars a holistic social development of Gujarat: ACS

“We are not looking at it just as an industrial policy. Our focus is not just developing physical infrastructure but to achieve a holistic social development of the state,” Mamta Verma, Additional Chief Secretary (ACS) for the Industries and Mines Department in the Government of Gujarat, told Live Mint in Gandhinagar.

To further catalyse this ecosystem, Gujarat Industrial Development Corporation (GIDC) shall develop a Gujarat Research and Innovation Park to attract leading R&D companies, startups, and technology-driven firms by providing state-of-the-art infrastructure, shared laboratories and testing facilities, pilot-scale and prototyping infrastructure, and plug-and-play workspaces.

“By offering a common ecosystem with robust digital connectivity, sustainability-oriented infrastructure and proximity to industrial clusters, the proposed R&D park will strengthen Gujarat’s innovation capacity, accelerate applied research and support the development of high-value technologies aligned with the state’s priority sectors and the broader vision of Viksit Gujarat and Viksit Bharat,” the policy document reads

Also, a one-stop digital portal for testing and R&D facilities shall be developed to facilitate seamless access for industries.

“With the objective of positioning Gujarat as a global R&D hub, the policy provides dedicated incentive support to attract large-scale investments in R&D centres. Also, special incentives are envisaged for R&D centres establishing operations in the state to provide a string initial stimulus and global visibility,” says the policy.

The new industrial policy comes at a time when Gujarat, which once ranked third in the country in terms of new investor additions until the end of 2025, has slipped toninth place in 2026 amid market volatility, foreign investor selling, and geopolitical tensions.

Gujarat witnessed a sharp slowdown in the addition of new stock market investors in May 2026, recording its weakest monthly growth in more than a year. According to a National Stock Exchange (NSE) report, Gujarat added 51,700 new investors in May, the lowest monthly addition since April 2025, when 49,900 investors had joined the market.