Gujarat Budget 2018: Rs 850 crore for incentives to industry units

The state government announced a provision of Rs 850 crore in the budget for 2018-19 to provide incentives under various industry related schemes.

The state government had announced a number of policies such as Industrial Incentive Scheme, Textile Policy, Garments and Apparel Policy, Defence and Aerospace Policy, Modified Scheme for Plastic Industries and others, over the past few years in a bid to attract investments in respective sectors by offering various incentives to the investors. The investments were expected to generate revenue for the state, as well as create jobs for local youths.

A senior official said that with implementation of Goods and Services Tax (GST), the tax goes to the state where a particular product or service is consumed, and not in the manufacturing state. "We have made the provision of Rs 850 crore in the budget to pay the incentives promised to investors. This includes the automobile majors, as well as medium sized and small companies operating in different sectors. The provision will be enough to meet our commitments for the year, and also enable us offer incentives to any potential investors who may be considering investing in the state," said an official.