Vibrant Gujarat

Micro Small and Medium

Micro, Small and Medium 
Enterprises: Engine of 
Modern Economic Growth
Table of Contents
Table of Contents

1. MSME

1.1 MSME: Indian overview 

1.2 MSME: Gujarat Scenario

1.3 MSME: District‐Wise Detail

1.4 Government Schemes for MSME
1.  Micro, Small and Medium 
E t
Enterprises (MSMEs)
i (MSME )
1.1. Micro, Small and Medium 
E t
Enterprises (MSMEs)
i (MSME ) : 

Indian Overview
 Micro, Small and Medium Enterprises (MSME) : Overview

The Government encourages and honors innovation and enterprise. The state and central government bodies 
work in close coordination with the Entrepreneurs, Industry Associations, Banks and other stakeholders
through numerous field offices and technical institutions to help the ‘engines
through numerous field offices and technical institutions to help the  engines of growth
of growth’ of India 
of India

Classification of MSME(s)
Micro, Small and Medium Enterprises  Enterprises Manufacturing  Service Enterprises:
(
(MSME) contribute natioanally
) Enterprises: Investment in
Investment in 
Investment in Plant &  Equipment
• 8 percent of the country’s GDP Machinery
• 45 percent of the manufacturing output  Micro Up to INR 2.5 Million Up to INR 1  Million

• 40 percent of the exports  Small  INR 2.5 Million – INR 50  INR 1 Million – INR 20 

• Largest share of employment after  Million Million

agriculture Medium INR 50 Million – INR 100  INR 20 Million – INR

Million 50 Million

Sources: msme.gov.in  5
 Micro, Small and Medium Enterprises (MSME) : Overview

As per 4th All India Census of MSME 2006‐2007,
1. Enterprises have increased at an annual growth rate of 28.02%
2. Employment has increased at an annual growth rate of 26.42%
Employment has increased at an annual growth rate of 26.42%

S. No. Factors Value

1 No. of enterprises  1.56 Million
(Acknowledged)

2 Employment generation
p y g 9.3 Million

3 Women‐led enterprises  ~215,000 (~13.72 percent) 

4 p
Rural enterprises  ~707,000
,

About 45.20% of the enterprises were located in rural areas. There 
are over 6 000 products ranging from traditional to high tech items
are over 6,000 products ranging from traditional to high‐tech items, 
which are being manufactured by the MSMEs in India.
Sources: msme.gov.in ; Annual Report 2012‐13 by Ministry of MSMEs, Government of India ; “Micro, Small and Medium Enterprise Finance in India‐2013” :  6

Report by International Finance Corporation (World Bank Group)
Distribution

• The figures brought out by the latest MSME Report by Ministry of MSME(s) revealed the 
size of the registered MSMEs sector to be over 1.1 Million Enterprises
• Of the total registered working enterprises, the proportion of micro, small and medium 
enterprises were 94 94% 4 89% and 0 17% respectively This comprises of 67 10%
enterprises were 94.94%, 4.89% and 0.17% respectively. This comprises of 67.10% 
manufacturing enterprises and 32.90% services enterprises. 
Proportion of total registered working 
Sector‐Wise Distribution
enterprises
0.17% 16.1%
4.89%

16.8%

67.1%

Manufacturing 
Service
94.94%
Micro Small Medium Repairing & Maintenenace
7
Sources: Gujarat Micro, Small & Medium Enterprises Report 2013
Growth of MSMEs in India

Number of MSME(s) in Registered Sector

1,800,000

1,600,000 1,564,000

1,400,000

1,200,000
1,101,045

1,000,000

818,550
800,000

581,290
600,000

400,000 367,396

174,319
200,000

0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

8
Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India
MSME Sector: Leading Industries (India)

Manufacturing of Wearing Appearel; Dressing and Dying
Leading Industries: MSME Sector
Manufacture of Food Products and Beverages
8.75%
19.40%
6.94% Manufacture of Furniture; Manufacturing N.E.C

3.21% Manufacture of Fabricated Metal Products, Except Machinery 
Equipment
q p
2.33%
3.77%
2.33% Manufacture of Textile

3.64%
6.20% Hotels and Restaurants
3.57%
Sale, Maintenance and Repair of Motor Vehicles and Motocyles; Retail 
Sale of Automotive Fuel

Retail Trade, Except of Motor Vehicles and Motorcycles; Repair of 
Personal and Household Goods

Other Service Activities
39.85%

Other Business Activities

Other Business Activities

Other
9
Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India
1.2.  MSME : Gujarat Scenario
Micro, Small and Medium Enterprises (MSMEs)

 The strength of Gujarat’s manufacturing sector lies in its strong base of micro, small and
medium scale enterprises (MSMEs)
 Ahmedabad,
Ahmedabad Surat,
Surat Rajkot,
Rajkot Vadodara,
Vadodara Bharuch,
Bharuch Jamnagar,
Jamnagar Bhavnagar and Valsad are the
major Multi‐Product MSME clusters in the state
 Total investment under MSME, between year 2010 ‐ 2014, stood at USD 7.7 billion
creating 1.39 million employment

Gujarat MSME Scenerio
Ahmedabad
Total MSMEs 
0.55 in Gujarat (in 
Millions) Jamnagar
Vadodara
2.16 Employment  Rajkot
Bharuch
generation in 
Surat and Tapi
state (in  Bhavnagar
Millions)
Valsad

11
Sources: MSME Division: Industries Comissioner Office, Gujarat
MSMEs in Gujarat 
There are over 312,000 SSI(s) and over 261,000 MSME(s) in Gujarat as on March 2014
300000 2500000
Cumulative Growth of MSME(s) in Gujarat
250000
2000000

200000
1500000

150000

1000000
100000

500000
50000

0 0
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐2014
Number of MSME(s) Registered 4131 17317 35184 55177 83117 134898 203133 261760
Investment (in hundred thousand USD) 5005.52 18177.52 31334.63 44397.37 59323.82 78950.93 100507.07 121463.0333
Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958

Number of MSME(s) Registered Investment (in hundred thousand USD) Employment

Total number of SSI(s) and MSME(s) registered in Gujarat > 525,000

12
Sources: MSME Division: Industries Comissioner Office, Gujarat
MSMEs in Gujarat 
There are over 312,000 SSI(s) and over 261,000 MSME(s) in Gujarat as on March 2014
300000 2500000
Cumulative Growth of MSME(s) in Gujarat
250000
2000000

200000
1500000

150000

1000000
100000

500000
50000

0 0
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐2014
Number of MSME(s) Registered 4131 17317 35184 55177 83117 134898 203133 261760
Investment (in hundred thousand USD) 5005.52 18177.52 31334.63 44397.37 59323.82 78950.93 100507.07 121463.0333
Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958

Number of MSME(s) Registered Investment (in hundred thousand USD) Employment

Total number of SSI(s) and MSME(s) registered in Gujarat > 525,000

13
Sources: MSME Division: Industries Comissioner Office, Gujarat
MSMEs in Gujarat 
There are over 312,000 SSI(s) and over 261,000 MSME(s) in Gujarat as on March 2014
300000 2500000
Cumulative Growth of MSME(s) in Gujarat
250000
2000000

200000
1500000

150000

1000000
100000

500000
50000

0 0
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐2014
Number of MSME(s) Registered 4131 17317 35184 55177 83117 134898 203133 261760
Investment (in hundred thousand USD) 5005.516667 18177.51667 31334.63333 44397.36667 59323.81667 78950.93333 100507.0667 121463.0333
Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958

Number of MSME(s) Registered Investment (in hundred thousand USD) Employment

Total number of SSI(s) and MSME(s) registered in Gujarat > 525,000

14
Sources: MSME Division: Industries Comissioner Office, Gujarat
Sector wise distribution of MSMEs in Gujarat 
TTotal MSME(s) 
t l MSME( )
Total MSME(s) Acknowledged up to 31 March 2014 Industry Registered from 
2006‐2014
10271
Textiles 69817
ac e y a d pa ts e cept e ect ca
Machinery and parts except electrical 15443
Basic Metal Industries 13153
Chemical & chemical Products 5459
47279 69817
Rubber & Plastic Products 4916
Food Products 4548
Electrical Machinery and Apparatus 3832
Non‐metallic mineral Products 3764
eather Products
Leather Products 3749
Paper Products & Printing 3613
24084 Mining and Quarrying 2567
Wood Products 2175
15443
Transport equipment and parts 1746
997 Beverages, Tobacco & Tobacco Products
13153 997
2175
Service Activities 24084
1746 2567
3749
3613 3832 4548 5459 Trading Activities
Trading Activities 47279
3764 4916 Others 10271
15
Sources: MSME Division: Industries Comissioner Office, Gujarat
 Availability of Skilled Man‐power
Gujarat has a good educational infrastructure with premier institutes in management, technology, fashion, design, infrastructure planning 
Gujarat has a good educational infrastructure with premier institutes in management technology fashion design infrastructure planning
and pharmaceuticals
• Gujarat’s literacy rate of 79% is above the National average of 74% Sectorwise total 
6610
• > 100 % Increase in seat availability in technical institutions over number of 
last 3 years 120 seats in 
• In 2001, Gujarat had 11 Universities which has increased to 48 in 1140 Degree Colleges, 
12345 Gujarat, 2013
2013 556
• 441 vocational training institutes (Industrial Training institutes
(ITI's)) offering 87981 seats every year for semi‐skilled manpower 72
• Over 7 lakh students graduate every year 10017
118

Knowledge Consortium of Gujarat 
Knowledge Consortium of Gujarat 71844
• Established by the Department of Education, Government of Gujarat Educational 
it envisions to generate and provide ideas and paradigms for Infrastructure
achieving excellence in education, educational management and
policy framing for education in general and higher education in 105
2 30
particular so as to ensure that Gujarat carves a unique niche for
it lf in
itself i the
th global
l b l knowledge
k l d society
i t in
i the
th 21st
21 t century
t 8

18 76
Policy of State to create Industry Responsive, readily employable, skilled 
manpower 69308
The State government has introduced various schemes for training of 
industry responsive manpower Currently Gujarat has 738 ITI(s) with a
industry responsive manpower. Currently Gujarat has 738 ITI(s) with a  Sectorwise
Sectorwise 
total seats of 149,545 Seats Engineering Diploma Engg number of 
Pharmacy Diploma Pharma Degree 
Arch. And Allied Hotel and tourism Colleges, 
MBA MCA Gujarat, 2013
Sources: Directorate of Technical Education, Gujarat

16

NID
MSME Clusters in Gujarat 
• Th Government
The G t has
h identified
id tifi d a total
t t l off 106 product
d t clusters
l t i
in
Gujarat in, traditional and modern, across the districts
• Gujarat stands 1st in terms of the asset base of the MSME sector,
according to the Fourth Census of MSMEs
• State ranks 1st in integrated overall performance of MSMEs at
National Level, as per ISED Small Enterprise Observatory
• The State Government has taken initiatives to extend support for
strengthening clusters through interventions such as
1. technology up‐gradation
2
2. quality improvement
• Out of the total number of working
3. setting up of common facility centers
enterprises, 56.13% are located in the clusters
4. skill development facilities, etc.
with an employment Contribution of 48.92% of
5. active assistance of R&D institutions, as well as industry
the total MSME employment.
associations
• Out of the total gross output in the MSME
• Micro and Small Enterprises ‐Cluster Development Program (MSE‐
sector, the contribution of clusters is 45.84%.
CDP)) is beingg implemented
p for holistic and integrated
g
• Of the total market value of fixed assets, the
development of micro and small enterprises in clusters.
combined share of units in clusters is 55.20%.
17

Sources: MSME Division: Industries Comissioner Office, Gujarat ; Gujarat MSME Report 203
Product Clusters in Gujarat

Plastic Products

Paper Products

Chemical Industry
Engineering

Textile Industry

Food Products

Mineral Products
Mineral Products
Others

18
Sources: Gujarat Micro, Small & Medium Enterprises Report 2013
1.3. MSME : District‐wise Detail

19
Ahmedabad

Dyes and Chemicals
Textile Machinery
Ahmedabad Pharmaceutical Machinery
Moulded Plastic Products 
Plastic Products
Readymade Garments 
Diamond Processing 
Did You Know?
Machine Tools
Castings & Forging 
Ahmedabad is  Steel Utensils
Number of SSI(s) & MSME(s) 64836 (SSI)
266911  MSME(s)  Wood work and Furniture 
known as the MSME 
Number of Industrial Estates ‐GIDCs
Number of Industrial Estates  GIDCs 13 Paper Products
Paper Products
Capital of Gujarat Leather Footwear 
Number of SEZ(s) 12
Number of Industrial Parks 10 Washing Powder & Soap
Special Transport  Number of private industrial co‐op 70 Marble Slabs
Facilities estates
Power driven Pumps
• BRTS Mass  Number of Clusters 8
Auto Parts
Transport Number of ITI(s) 61
Electronic goods
• Expressway Fast  Major Ports Kandla, Mundra,
Transport Vadinar

Airport: Sardar Vallabhbhai Patel International Airport, Ahmedabad; Lies in the influence area of DMIC

20
Sources: MSME Division: Industries Comissioner Office, Gujarat
Rajkot and Morbi

Diesel Engines and parts
Morbi
Submersible Pumps

Gold and Silver Jewelry

Gold and Silver Jewelry

Salt Processing

Rajkot Electronic

Did Y K
Did You Know?
? Watches and Clocks

Oil Mills
Rajkot is one of the 
most competitive  Textile Printing
production centre
d i i
in  Number of SSI(s) & MSME(s) in Rajkot 20,832
Clay Floor Tiles
India offering  and Morbi
engineering services  Number of Industrial Estates 16 Electric Motors
and is known as  Number of Clusters 6 Casting and Forging
Casting and Forging
“M
“Manufacturing Hub 
f i H b
Number of ITI(s) 25
of Gujarat” Machine Tools
Nearest Port Navlakhi
Diamond Processing

Paper Products
Airport: Rajkot Domestic Airport

21
Sources: MSME Division: Industries Comissioner Office, Gujarat
Surat and Tapi
Paper Products
Paper Products
Diamond Cutting and Polishing
Textile 
Powerlooms
Zari
Wood Products and Furniture 

Surat Tapi Rubber, Plastic and its Products

Engineering
Did Y K
Did You Know?
?
Indian Diamond Institute 
Number of SSI(s) & MSME(s) in Surat 221511
Provides training, 
Surat accounts  Number of Industrial Estates 11 Govt.
15 Private
15 Private consultancy and R&D
consultancy and R&D 
f
for about 80 % of f
Number of SEZ(s) 5 Services in diamonds, 
total diamond 
processing done in  Number of Industrial Parks 8 coloured gemstones 
India, thus giving it and machine cast jewellery
Number of Clusters 3
the name of
h f Number of ITI(s) 48
Man Made Textile Research
‘The Diamond City’ Nearest Port Magdalla &  Association (MANTRA) 
Hazira
Provides R & D, Testing, 
Technical and Quality
Technical and Quality 
Airport: Surat Airport;  Lies in Influence area of DMIC Control Services

22
Sources: MSME Division: Industries Comissioner Office, Gujarat
Vadodra and Chhota Udaipur

General Engineering

Pharmaceuticals (Bulk Drugs)

Chhota
Udaipur
Uda pu
Vadodara Plastic Processing

Wood Work and Furniture

Did You Know?
Textile
The city is on the 
major rail and road  Glass
arteries joining 
Mumbai with Delhi  Cotton
and Mumbai with  Number of SSI(s) & MSME(s) in Vadodara ~25,000
Ahmedabad.  Number of Industrial Estates 11 Tobacco
Because of this
Vadodara is known  Number of SEZ(s) 3 Fertilizer
as a  Number of Industrial Parks 4
‘Gateway to the Fisheries
Number of ITI(s) 48
Golden Corridor’
Dairy

Airport: Vadodara Domestic Airport; Lies in influence area of DMIC Paper Products

23
Sources: MSME Division: Industries Comissioner Office, Gujarat
Bhavnagar

Ship Breaking
Bhavnagar

Steel Re-rolling
g

Machine Tools
Did You Know?

Alang & Sosiya Ship  Pl ti Processing

Plastic P i
Number of SSI(s) & MSME(s) in ~15,000
Breaking Yard are  Vadodara
Diamond Processing
Employment Generated >100,000
Asia's Biggest Ship 
Breaking Yards. These  Number of Industrial Estates 10 GIDC Salt Processing
5 Private
Wood Products
are now on a fast  Number of ITI(s) 28
Paper Products
paced growth towards
paced growth towards  P t( )
Port(s) Bh
Bhavnagar Chemical Industry
Ship Making &  Bhavnagar contributes to 90 per cent of Magnesium Engineering
Hydroxide production tin India
Recycling Textile Industry

Airport: Bhavnagar Domestic Airport; Lies in influence area of DMIC

24
Sources: MSME Division: Industries Comissioner Office, Gujarat
Porbandar and Junagadh

Number of SSI(s) & MSME(s) in SSI : 1725

Porbandar MSME: 628
Number of Industrial Estates 3
Total number of Industrial 2
Clusters
Number of ITI(s) 3
Junagadh
Number of SSI(s) & MSME(s) in SSI : 7181
g
Junagadh MSME: 1352 Porbandar

Number of Industrial Estates 6

Number of Industrial Parks 1
Total number of Clusters 4
N b off ITI(
Number ITI(s)) 63
Ports Veraval Port

Did You Know? Machine Tools Chemicals

Junagadh is famous in the Seafood products Glass and Ceramics

country for production of Cement Paper Products
mango, mango based
Engineering
products which is beingg
p Food Products
exports in various countries

25
Sources: MSME Division: Industries Comissioner Office, Gujarat
Jamnagar and Devbhoomi Dwarka

Number of SSI(s) & MSME(s) in 5640

Jamnagar and Dwarka Bhoomi
Number of GIDC Industrial 11
Estates
Number of SEZ(s) 1
Number of Clusters 1
Jamnagar
Number of ITI(s) 15
Devbhoomi Dwarka
Ports Bedi Port, Okha
P t Sikka
Port, Sikk Port,
P t
Pindara Port,
Salaya Port
Airport Jamnagar
Domestic Airport

Did You Know?

Brass metal parts cluster in  Brass Articles Paper Products

Jamnagar is famous 
f Wood Products  Textile
worldwide for its wide  &Furniture  Mineral Products
variety and quality of  Food Products Engineering
products Chemical

26
Sources: MSME Division: Industries Comissioner Office, Gujarat
Bharuch and Valsad

Number of SSI(s) & MSME(s) in SSI: 11,991

Bharuch MSME: 5456
Number of GIDC Industrial 12
Estates
Bharuch
Number of SEZ(s) 8
Number of ITI(s) 9
Nearest Ports Dahej
Nearest Airport Vadodara

Dahej has been identified as a thrust area for large

scale industrial development by the Government of
Valsad
Gujarat
j
Lies in the Influence Area of DMIC

Number of SSI(s) & MSME(s) in 4634 Petrochemical Chemicals

Valsad
Number of Industrial Estates 5 Pharmaceutical  Paper & Pulp Industry
Number of Industrial Parks 2
Number of ITI(s) 5 Textile Textile 

Lies in the Influence Area of DMIC

Light Engineering Wood Products

27
Sources: MSME Division: Industries Comissioner Office, Gujarat
Government Organizations for Assistance and Promotion of 
MSME(s)

Industries ■ Promotes industrial development by bringing about industrial reforms
Commissionerate
■ Monitors and Controls functions for planned industrial development
(IC)
http://ic.gujarat.gov.in/

■ iNDEXTb was set as a ‘facilitating’ organization to ensure smooth and hassle‐free experience 

Industrial for a prospective investor
Extension Bureau ■ iNDEXTb provides information to the public in general and entrepreneurs in particular, 
(iNDEXTb) regarding the opportunities available in the State of Gujarat for industry, commerce, trade, 
business openings and participation therein
http://www.indextb.com/

■ GIDC has been created for securing the orderly establishment and organization of industries in 
industrial areas and industrial estates in the state
Gujarat Industrial 
G j tI d t i l
■ To fulfill the above mandate, the Corporation has established 186 industrial estates, ranging 
Development  from mini to mega sizes, in 25 of the 25 districts of the state. It has also developed 6 Special 
Corporation Economic Zones
(GIDC) ■ GIDC is now establishing Special Investment Regions, PCPIR, Industrial areas and large /sector‐
specific estates in tune with the changing economic and industrial scenario
http://www.gidc.gov.in/
28
Institutes for Assistance to MSME(s)

Micro, Medium  MSME‐DI (formerly Small Industries Service Institute), Ahmedabad covers the entire State of
and Small Gujarat covering 33 districts and Union Territories of Dadra & Nagar Haveli, Daman and Diu.
Industries  The Institute with its 2 Branch, Small Industries Service Institutes, one each at Rajkot and
Development Silvassa and one Field Testing Station, Ahmedabad, serves the small scale industries in these
Institute areas
http://www.msmediahmedabad.gov.in/

Entrepreneurship ■ The program, 'SME Banking & Financial Services' has been designed to facilitate an in‐depth 
Development understanding and develop skills in assessing financial needs of SMEs and designing 
Institute of India appropriate financial intermediation
appropriate financial intermediation
http://www.ediindia.org/

■ TTo develop entrepreneurs in state at urban and rural areas so that they can start their 
d l t i t t t b d l th t th t t th i
Center for 
manufacturing or service venture for the economic growth and become self employed as well 
Entrepreneurship 
as provide employment to others. 
Development 
(CED) ■ The Entrepreneurship Development Program (EDP) develops confidence in a person to 
establish his own venture and manage it successfully
establish his own venture and manage it successfully
http://www.ced.gujarat.gov.in/
29
Sources: MSME Division: Industries Comissioner Office, Gujarat
Government Supported Institutes for Assistance to SME(s)
Gujarat Industrial and Technical Consultancy Organization Limited (GITCO)
Gujarat Industrial and Technical Consultancy Organization Limited (GITCO)
GITCO – a premier Technical Consultancy Organization (TCO) ‐ provides consulting services to accelerate the growth of 
industrial and services economy of Gujarat.
www.gitco.co.in
Indo German Tool Room
Indo German Tool Room Ahmedabad is a tool room and training Centre engaged in production of tools of 
precision plastic & metal component and also engaged in area of Training in tool and die making, CAD/CAM & CNC 
Technology.
www.igtrahd.com
Electronics and Quality Development Centre
EQDC provides Testing, Calibration and Quality services throughout the nation ranging from Government, semi 
government, and private organizations to MSME are of twenty three states across the country and abroad to 
Asiatic / Arabian countries.
www.eqdc.in
Central Glass and Ceramics Research Institute
CSIR‐CGCRI, Naroda Centre was established in the year 1977 to cater to the needs of the Ceramic 
Industries in the small and medium scale sectors in Gujarat and adjoining areas
www.cgcri.res.in
Central Institute of Plastic Engineering and Technology
CIPET provides dedicated services to the students and industry through long term and Short term
CIPET provides dedicated services to the students and industry through long‐term and Short‐term 
courses, technical services in design and development of moulds for plastics products in the state‐of‐
art testing laboratory.
www.cipet.gov.in
Pharmaceutical Education and Research Development (PERD) Centre
B id R
Besides Research, PERD Centre provides some of the quality services to the industry in the areas of 
h PERD C t id f th lit i t th i d t i th f
Bioequivalence, Toxicity studies, Biotechnology, Pharmacology and Phytochemistry.
www.perdcentre.com
30
Sources: MSME Division: Industries Comissioner Office, Gujarat
MoU(s) Signed by MSME(s) in Vibrant Gujarat

MoU(s) Signed in Previous Versions of Vibrant Gujarat
15000 12886

10000 8863

4494
5000 3060
1921 1581
0
2009 2011 2013

N b
Number ofProjects Signed
fP j t Si d
Number of Projects Comissioned or Under Implementation

Year Number of MoU(s)  Projects Commissioned Projects under 

Signed
d Implementation
l
2009 1921 1558 23
2011 4494 2851 209
2013 12886 4848 4015

31
Sources: MSME Division: Industries Comissioner Office, Gujarat
1.4.  Government Schemes for 
MSME( )
MSME(s)

32
Assistance to Micro Small and Medium Enterprises

Interest Subsidy Venture capital Quality Certification Skill Enhancement

 All MSMEs are eligible for setting up of new unit   Venture capital assistance   Assistance for maximum 3   Reimbursement @50% of 

or expansion or diversification or modernization  through Banks/FIs for projects  quality certifications @ 50%  fees, subject to maximum 
of existing unit.  adopting innovative technology  of expenditure subject to  of INR 5000 per person for 
 Graded interest subsidy,  @7% for micro 
d d b d f such as Technical textile
such as Technical textile,  overall ceiling of INR
overall ceiling of  INR  a minimum one week
a minimum one week 
enterprises and @ 5% for Small & Medium  Nanotechnology, Information  600,000  in five years training for skill 
enterprises.  Technology, Bio‐Technology etc..  Expenditure includes fees 
upgradation conducted by 
 Funds to be provided to  charged by certification  institutions suggested by 
 1% additional interest subsidy to youth having  Anchor Institute or 
less than 35 years of age in case of first project.  Banks/FIs up to Max INR 100  agencies, cost of testing 
Million during the operative  equipment, calibration  specialized institutions in a 
Woman entrepreneurs accorded priority
Woman entrepreneurs accorded priority.  specific sector for a
specific sector for a 
period of the scheme charges, consulting fees and 
 Maximum amount INR 2.5 million per annum,  training charges minimum batch size of 25 
for five years period trainees

Technology Acquisition Fund Support to R&D Institutions Patent Assistance  Energy and water conservation

gy

 Assistance for technology   Assistance to R&D institutions set up 
 Assistance @ 50%. subject to   Reimbursement @ 50% of cost 
acquisition in any form for  with state government support for 
max. INR 1 Million towards  of energy/ water audit with a 
group of at least 10 MSMEs  testing facilities, incubation center as 
necessary expenditure for  max. of INR 25,000/‐ unit 
for specific  well as setting up of new R&D Centre, up 
obtaining domestic patents   In addition, assistance of 20% of 
product/process, by way of  to 60% of the project cost excluding land 
and INR 2.5 Million for  cost of equipment subject to 
cost of eq ipment s bject to
50% grant, subject to max.  and building cost.
d b ildi
obtaining international  max. INR 1 Million in a project
INR 10 Million/ technology   Assistance for Contract/ Sponsored  patents subject to maximum 
including royalty payments  research work from Industrial  5 patents per unit over a   Priority for group of 
for first 2 years units/Industry Association through  period of 5 years units/clusters
recognized R&D institutions / AICTE 
approved technical colleges @50% of
approved technical colleges, @50% of 
project cost with a ceiling of INR 5 
Million.

Resolution No. MSM/102009/57928/I 33
Date: 27/2/2009 Sources: ic.Gujarat.gov.in
Extension GR: MSM‐10‐2013‐2070‐I (28/1/2014)
Assistance to Micro Small and Medium Enterprises

Market Development Support Support for Ancillary/ Vendor Development

 Assistance to MSME for packaging design from recognized institutions, @ 50% of the   Support to Vendor development on PPP model wherein 
cost, subject to maximum INR 200,000 once in a period of five years. Parent unit to contribute min. 5% for prototype/ new 
 Assistance to MSME for participation in International Trade Fair outside India @ 50%
p p product development besides technical support and 
cost of rent, literature & display material subject to maximum INR 200,000 commitment for procurement guarantee for 3 yrs. 
i f f 3

 Assistance to Industries Associations (min. 5 units) for participation in international   Vendor unit will be eligible for interest subsidy as per 
trade fairs as Gujarat Pavilion outside India @ 50% of total rent subject to max INR 1  scheme
Million  Assistance @ 20% of infrastructure cost excluding land cost, 
 Viability Gap Support to industry associations for organizing national seminars/  max INR 10 Million to parent unit for development of 
exhibition in Gujarat (max. INR 400,000) and int. seminars/ exhibitions in Gujarat  iindustrial park
d ti l k
(max. INR 800,000)  New or existing Medium/large unit as Parent unit to support 
 Assistance to industry associations for setting up Convention/ Trade center @ 50% of  min. 10 vendor units for a new product/ prototype 
project cost excluding land, max INR 50 Million once in a period of five years development

SSupport to Auxiliary industries 
t t A ili i d ti
Cluster Development
for value addition
 Large units producing raw   Anchor units, nodal institutions and/ or industry associations to take up the cluster program in PPP mode.
materials and promoting   Comprehensive support to strengthen cluster units in a program covering product design,  technology upgradation, 
auxiliary MSME units to be  quality improvement, energy and water conservation, common branding and marketing facilities, hiring of an expert/ 
encouraged to develop
encouraged to develop  cluster development agent setting up of demonstration plants common facilities Incubation center ITI extension
cluster development agent, setting up of demonstration plants, common facilities, Incubation center, ITI extension 
industrial park for  center and other need based facilities
accommodating min. 20 units.   Assistance @ 80% (including assistance from Government of India) of proposed cost of program with a ceiling of INR 
 Assistance @ 20% of  100 Million/ cluster in a period of 3 ‐ 5 years
infrastructure cost excluding   Assistance to nodal institutions/ hiring of experts will not exceed 3% of project cost
land cost subject to max. INR   A Cluster Advisory Institution (CAI) to be constituted
10 Million  Cl t t b li ibl f
Cluster to be eligible for partial financial assistance, available under critical infrastructure scheme.
ti l fi i l it il bl d iti l i f t t h
 Nodal institution to prepare a five year comprehensive development plan of the cluster.

Resolution No. MSM/102009/57928/I 34
Date: 27/2/2009 Sources: ic.Gujarat.gov.in
Extension GR: MSM‐10‐2013‐2070‐I (28/1/2014)
 Assistance to Micro Small and Medium Enterprises

Rehabilitation of  Sick Units Awards to best MSMEs

 50% subsidy on cost of diagnostic study by Technical   Separate awards to Micro, Small and 
institution initiated through  FI/ Bank/ Government‐
maximum INR 100,000. Medium category 
 Registered Experts in the field of technology,   Three awards in each category
marketing and finance to advise sick units.50% fees 
(max. INR 100,000/unit) to be reimbursed on  o Growth in production and profit
implementing suggestions.
o Quality and Environment  Promotion of 
 Interest subsidy @5% p.a. limited to INR 10 Lakh per 
Specific Sector
Specific Sector
year for 3 years on additional finance for 
f dd lf f improvement measures
rehabilitation disbursed by bank/FI.  Specific sector identified in a district 
 OTS for clearing dues of  GoG Dept./ Corp./ Boards  o Innovation in technology for new  shall be supported with integrated 
on a graded scale, for which a separate GR to be  program of interest subsidy, technology 
product or process development upgradation and quality certification
introduced
 Other unit taking over a sick unit for rehabilitation to 
Oh i ki i k i f h bili i  Award in the form of INR 100,000 cash and 
Award in the form of INR 100 000 cash and
be eligible for assistance as above appreciation letter

 Awardees are to be given priority in  Eligibility for Quantum Assistance
participation in International Seminars
 All eligible MSME can avail incentives 
All eligible MSME can avail incentives
 Independent Credit Rating agency to be  under different categories separately or 
appointed to select the best performing  in combination. Assistance will be given 
MSMEs in the above categories only once under each category in five 

 Nominations to be encouraged from 
Nominations to be encouraged from yyears period unless otherwise specified in 
p p
specific category of incentive.
Industries Associations

Resolution No. MSM/102009/57928/I 35
Date: 27/2/2009 Sources: ic.Gujarat.gov.in
Extension GR: MSM‐10‐2013‐2070‐I (28/1/2014)
 Assistance to Textiles and Apparels

 Maximum interest subsidy will be at the rate of 5% per annum 
(7% for spinning unit and garment/made‐ups unit.)
 Spinning Units which have acquired second hand imported 
machinery (acquisition value shall be at least less than 50% of 
the value of new imported machinery) or The weaving
the value of new imported machinery) or  The weaving 
enterprises which have acquired second hand imported 
Shuttle less loom having 10 years vintage and with a residual 
life of minimum 10 years duly certified by CE/CA etc.

 Refund of VAT paid by unit on purchase of 
intermediate  product/raw material except for 
certain goods and certain transactions which
certain goods and certain transactions which 
are not eligible for tax credit under The Gujarat  Scheme 1  Power Tariff subsidy at the rate of INR 1 per 
VAT Act, 2003 and reimbursement of tax  unit in the billed amount of utility for 5 
collected on end product/intermediate  years to cotton spinning and weaving units.
product within entire value chain from cotton   This will only be applicable for establishing 
to Garment and made ups to the extent of  new enterprises or for expansion/
new enterprises or for expansion/ 
100% the eligible fixed capital investments in  diversification of existing enterprises as 
plant and machinery made within one year  well as the units with second hand eligible 
(two years in case of investment more than  imported machineries.
500 crores ) from the date of production or 
during the operative period of the scheme   The units who purchase electricity only 
whichever is earlier
whichever is earlier. from the state electricity / power
from the state electricity / power 
distribution licensee will eligible for this 
 The concession will be available within 8 years  relief
from the date of the production.
Resolution No. TEX/102012/65117/T  36

Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in

Assistance to Textiles and Apparels

Support to Technical Textiles

■ Credit linked Interest Subsidy @ of 6% per annum for investment in New and modern Plant and Machinery as specified under
TUF scheme of GoI or covered under definitions of capital goods in VAT Act would be eligible .

Scheme-2
Scheme 2 ■ The scheme will be applicable to new as well as to existing enterprise for expansion / up gradation in above sectors.
■ The enterprise which have acquired second hand machineries having 10 years vintage & with residual life of minimum 10
years duly certified by the competent authority will be considered eligible for support to the extent of 60 % of the acquisition
value of imported machineries.
■ The acquisition value of the second hand machinery shall be considered up to 50% of the value of new imported machinery or
actual whichever is less.

Assistance for Energy & Water Conservation and Environmental Compliance to existing Unit
■ Assistance up to 50%, max INR 50,000 for Energy Audit/Water Audit/ Environmental Compliance. Assistance of to 20% cost of
Scheme 3 equipment limited to INR 2 Million .
■ The Enterprises will be eligible for the above benefit once in 2 years of operating period of the scheme

Assistance for Technology acquisition and up gradation

Scheme 4 ■ The enterprise acquiring the technology for the first time in India will be considered eligible under the scheme.
■ Assistance up to 50%,
50% with max of INR 2
2.5
5 Million per process/product

Resolution No. TEX/102012/65117/T  37

Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in

Assistance to Textiles and Apparels

Training Support Textile & Apparel Park

Scheme‐5 Assistance for Apparel training Institutions  Scheme‐7  Support for Establishing Textile and 
and Trainees
Apparel park
 Autonomous institutions promoted by 
Autonomous institutions promoted by
government/public/private sector undertaking with   The park will be provided financial Assistance up 
strong background in this field to 50 per cent with maximum limit of INR 100 
 Assistance up to 85%, maximum INR 30 Million  Million (INR 300 Million of spinning park) of total 
excluding land cost for training Institutes
excluding land cost for training Institutes project cost for common infrastructure excluding 
land cost
 Assistance up to 50% maximum INR 2 Million for 
training Centers  The park must have provision for the location of 
minimum 20 nos. of manufacturing/service 
 Reimbursement of tuition fees to trainees up to 50%  enterprises.(Max 25% nos. of service enterprises).
maximum INR 7,000 per course for ten years from date 
maximum INR 7 000 per course for ten years from date
of commencement  For Spinning Park‐ must have provision for the 
location of min. 10 nos. of spinning units with min. 
Scheme‐6   Training Support to power‐loom Sector 150 acres of land.

 Stipend of INR 2,500 per trainee to trainees of power
Stipend of INR 2 500 per trainee to trainees of power‐  Up to 35 % of land may be utilized for weaving 
loom training center's operated by ATIRA and Mantra activities  to support spinning activities. 
 Transport cost & incidental expenses will be provided   Stamp duty exemption certificate will by issued 
to :  (a) Weavers @ INR 200/‐ per day for duration of  after approval of the project by SLAC.
two days. (b) Jobbers @ INR 300/‐ per day for duration 
of six days. 
f d
 No allowances will be given to Power loom Owner

Resolution No. TEX/102012/65117/T  38

Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in

 Assistance to Manufacturing Sector
Go t. o
Govt. of Guja
Gujarat
at Introduced
t oduced following
o o g sc
schemes
e es for
o 5 Manufacturing
a u actu g Secto
Sectorss namely
a e y Auto
uto & Auto
uto Co
Components,
po e ts, So
Solar
a & Wind
d Equipment
qu p e t
manufacturing, Specialty & fine chemicals, Electronic System design & manufacturing and Food & Agro Business.
Interest Subsidy
■ Graded interest subsidy for five years @ 7 %  for 
MSMEs & 2% for large Industries having an actual 
investment up to INR 1 Billion.
Assistance for Centre of Excellence
Assistance for Centre of Excellence
■ Maximum amount of interest subsidy per annum 
shall be INR 2.5 Million for MSMEs & INR 5 Million 
■ Center of Excellence in PPP mode with State/ 
Assistance for Core Infrastructure State institution/ industrial units/ professional 
for large units
institutes shall be eligible for assistance under 
■ This assistance will be for enabling basic infrastructure  this scheme.
facilities.
■ Quantum of one time assistance shall be 70 % of 
■ The expenditure incurred for the core infrastructure  the total expenditure, including recurring
the total expenditure, including recurring 
development, excluding the land cost, shall be  expenditure for the three years, limited to INR 
considered. 200 Million in the case of national level and COE 
■ The new industrial park will be provided incentives of 50  promoting value addition in the sub sectors of 
% of total expenditure limited to INR 200 Million this GR.

■ Developer of park and first purchaser of individual unit  ■ Quantum of one time assistance shall be 70 % of 
eligible for exemption on payment of stamp duty and  the total expenditure, including recurring 
registration charge on purchase of land expenditure for the three years, limited to INR 
dit f th th li it d t INR
300 Million in the case of international level COE 
■ Certificate for exemption in Stamp Duty and  promoting value addition in the six sub sectors 
Registration charges shall be issued after the approval of  and in the area of innovation and 
the project by SLAC. entrepreneurship

Assistance for Setting up of Common Facilities
Assistance for Common Effluent Treatment Plant
■ Group of industries, Industrial Associations/ SPV of Industrial 
Associations or private company registered under the Societies Act, 
■ An Industrial Park promoted on self sustained basis by 
Industrial Association / SPV of Association / Private Company 
Partnership Act or the Companies Act shall be eligible to avail 
would be eligible for assistance for setting up of project of 
assistance.
CETP, incinerators and disposal of effluent.
■ One
One time assistance up to 80 % of the total expenditure limited to 
time assistance up to 80 % of the total expenditure limited to
INR 100 Million for the cost of P & M test equipment, 
■ Including the assistance of GoI, assistance up to 75% of total 
project cost will be given. If GoI assistance is not available then 
electrification, installation shall be considered to a self  sustained 
40 % assistance will be given
project as approved by SLAC.

Resolution No. BJT‐102012‐92765‐I  39

Dt. 26.2.2013 Sources: ic.Gujarat.gov.in

Improving Industrial Infrastructure 

 Assistance to be considered for

 Upgrading infrastructure facilities as
 Assistance to Industries Associations / Industrial may be required in an industrial estate
houses or Institutions for setting up industrial park / clusters/industrial area.
in PPP mode.  Additional infrastructure facilities.
 Industrial p park must have basic infrastructure  Upgradation of infrastructure facilities
facilities to be classified into C, B & A categories in GIDC estates and
depending upon the minimum infrastructure  Undertaking specific studies.
facilities.  Industries Associations, Large Industry, Govt.
 Assistance will be in the form of Viability Gap Dept./agency, to be eligible.
Funding upto 20% of the cost through GIDB.  Assistance will be @60% of the project cost
 Additional Assistance upto 20% may be provided with a ceiling of INR 100 Million in case of
by the Central Government Industrial area / Park having less than 100
IImproving
i h t
hectares andd INR 200 Million
Milli f area more
for
Industrial than 100 hectares
Infrastructure  The promoter is to contribute 20% of equity in
the project.
 Last mile connectivity project to the industrial
park / area having more than 25 hectares to be
considered.

Scheme for assistance to Industrial Park/Estate set up by Private Institution

 Assistance to Industries Industrial Parks/Estates set up by Private Institutions.
 Any Industry Association/Industrial House or Institution registered under Societies Act or
Companies Act shall be eligible to avail assistance under this scheme.
 Industrial Parks/Estates shall have minimum of 30 industrial units in at least an area of 100
acres.
 Industrial Parks/Estates must have basic infrastructure facilities required like developed plot,
internal roads, water distribution , communication facilities and such other facilities/services
as may be required.
 The Industrial Park/Estate will be provided an assistance of INR 100 Million for link
infrastructure.
 Th developer
The d l off the
h industrial
i d i l parkk will
ill be
b eligible
li ibl for
f exemption
i on payment off stamp
dusty on purchase of land required for the project. Industrial units are required to pay stamp
duty at the rate of 50% of the duty

Resolution No. BGT/1008/626/G Scheme for Assistance to Set Industrial Park/.Estate set up by Private Institution added in: 40

Dt. 27/02/2009 Addendum No: BJT/1008/626/Part‐1/G Sources: ic.Gujarat.gov.in

Dt. 20/10/2011
Assistance for Environment Protection Measures

Assistance Environment  Assistance for encouraging green 
Management to MSMEs practices and Environmental Audit 
to MSMEs
• Substitution & Optimization of raw  • Use of Clean, efficient and Innovative Pollution 
material including catalysts up to 25% of  Control Equipment in industries: up to 25% of cost 
cost of plant & machinery ,  ceiling of  of equipment, ceiling of INR 250,000 per unit
INR 1 Million per project
• Periodic Environmental Audits up to 50% of fees 
of audit services or maximum INR 25, 000/unit
f di i i INR 25 000/ i
• Rainwater harvesting up to 50% of cost of 
fixed capital investment ceiling of INR 500,00  Assistance for  • Encouraging Environment Management System‐
per project Environment  setting up of Environment Management Cell up to 
Protection  25% of cost of equipment ,  or maximum INR 
Measures‐ MSME 
MSME 500,000/plant once in a lifetime
• Any Other pre‐identified environment 
management project up to 25% of cost of plant  Units  Purchase of new equipment/systems related
& machinery ,  ceiling of INR 1 Million per  to safety, occupational health for a cluster of
project industries Assistance to industrial association or
SPV of Industrial units up to 25% of cost of
• Implementation of cleaner production and 
Implementation of cleaner production and equipment or maximum INR 2.5 2 5 Million per
clean technology measures etc. up to 25% of  cluster.
cost of plant & machinery ,  ceiling of INR 1   Installation of Solar system leading to at
Million per project least 5% energy saving Up to 25 % of the
cost of system, INR 250,000 per plant

Resolution No. BGT/1008/499(1)‐G and BGT/1008/499(2)‐G 41

Dt. 11/06/2009 Sources: ic.Gujarat.gov.in

Enhancement of Technical Competence and Man Power

 Financial assistance for setting up extension center of ITI/

 Assistance to State Level Anchor Institutes in the selected
Polytechnic/ Engineering colleges in GIDC estates / industrial focus sectors towards expenditure on equipment,
internal refurnishing of premises and contingency.
clusters / SEZs/ Industrial Parks to run specific courses @,
 Additional financial support towards operating expenses
 100% in case of GIDC, to Anchor and Nodal Institutes.
 75% in industrial cluster and
 Anchor Institute to actively involve industries and
provide technical support to the technical educational
 50% in industrial Parks/ SEZs institutions for shop floor workers, supervisory and
managerial level training.
with a ceiling of INR 10 Million for each
 The total financial assistance under both capital
E t i Centre
Extension C t towards
t d costt off Machinery
M hi and
d andd expenses willill nott exceed
d INR 100 Million
Milli ini
each sector in the operative period of the scheme.
equipment

 Assistance to Institutes / Universities/ Industry Partner could run the courses from
existing courses with addition of certain subjects.
Industries / Industries Associations for setting up Alternatively new course can be started as per the
specialized training Centre in the areas of marine specific requirements by industry in existing
ITI/Polytechnic/ Engineering Colleges.
engineering, mining, specialized pipe laying, logistic and  Assistance @ 75% cost of machinery and equipment up
services etc. and other advanced technology and management to INR 10 Million contributed jointly by DTE/DET/IC.
DTE/DET/IC
 Industry partner/industries Association / institutes to
courses to the extent of 50% of the project cost covering contribute rest of the amount and provide infrastructure
building, equipment and machinery excluding land cost with a facilities in the form of land and building.
 Institutional Management Committee (IMC) to monitor
ceiling of INR 20 Million and run the course

Resolution No. CED‐112007/ 2081(1)/I 42

Dt. 27/02/2009
Mission Mangalam (Under Gujarat Livelihood Promotion Company Ltd.)

 Gujarat’s most precious resource is 'people' and 
their potential to work towards collective  Integrated poverty alleviation approach in a 
demand driven convergence mode
Approach
betterment of the state and eventually the nation. 
 Poverty becomes an hindrance for optimum 
utilization of this resource and its potential. 

Mission Mangalam
Poverty has numerous manifestations including  Single platform for stakeholders like Banks, 
Single 
Industry Partners, Micro Finance Institutes and 
low and unreliable income poor health low levels
low and unreliable income, poor health, low levels  Skill Imparting Institutions, etc. Platform for
Platform for 
Stakeholders
of education and literacy, insecurity and uncertain 
access to justice, disempowerment and isolation 
from mainstream socio‐economic development. 
p
Around 24 lakh women are currently active  Current
 Mission Mangalam, through its multi‐dimensional  under 2 lakh Sakhi Mandals / Self Help Groups  Strength of
policies and interventions aims to provide  (SHGs) in the state, managing aroung INR 10  Self Help 
Billion through bank linkage. Groups
permanent solutions. It strives to provide options 
of income generating opportunities, ready to 
 Financial Literacy Further 
access means of production, affordable basic   Universalization of SHG(s)
 Setting up MIS and innovative monitoring
Growth
services and protection of law. Thus, 'Mission  Strategy
Systems
M
Mangalam' is a complete package with all these 
l 'i l k i h ll h
elements incorporated in it.
43
Sources: http://www.glpc.co.in/
FOR ADDITIONAL INFORMATION CONNECT US @

Industries Commissionerate

Block No. 1, 2nd Floor, Udyog Bhavan, 
Gandhinagar, Gujarat, India ‐ 382 010
http://ic.gujarat.gov.in/
Phone: 079 23252683
Phone: 079‐23252683
E‐mail: [email protected]

Gujarat Industrial Development Corporation

Block No. 4, 2nd floor, Udyog Bhavan, 
Gandhinagar, Gujarat, India – 382 010
h //
http://www.gidc.gov.in/
id i /
Phone: 079‐23250583
E‐mail: [email protected]

44
Organized By Knowledge Partner National Partner

Visit us at www.vibrantgujarat.com

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