The Gujarat MSME scheme at a glance
The Government of Gujarat's Industries and Mines Department set up the Aatmanirbhar Gujarat Scheme for assistance to MSMEs by a resolution dated 05-Oct-2022. It is operative from 05-Oct-2022 to 04-Oct-2027 (Gujarat MSME scheme resolution, 05-Oct-2022).
| Benefit | Who gets it | How much | Source |
|---|---|---|---|
| Capital investment subsidy | Micro enterprises in manufacturing, new or expanding | 10% to 25% of the term loan, up to ₹35,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Interest subsidy | Micro, small and medium manufacturing enterprises | 5% to 7% a year on the term loan, for five to seven years | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Other assistance | MSMEs, by scheme | Includes CGTMSE fee reimbursement, net SGST reimbursement, quality certification, ZED certification, patents and rent assistance | Office of the MSME Commissioner, Gujarat |
Gujarat had 52,45,215 MSMEs on the Ministry of MSME's Udyam dashboard as of 03-Oct-2026, including 33,61,552 micro enterprises on Udyam (Ministry of MSME Udyam dashboard).
Who counts as an MSME under the Gujarat scheme
The scheme uses its own definition, by fixed investment in plant and machinery (Gujarat MSME scheme resolution, 05-Oct-2022):
| Category | Plant and machinery investment | Source |
|---|---|---|
| Micro | Up to ₹1,00,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Small | Above ₹1,00,00,000, up to ₹10,00,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Medium | Above ₹10,00,00,000, up to ₹50,00,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
The enterprise must hold an acknowledgement or registration from the Ministry of MSME (Udyam) or DPIIT (Gujarat MSME scheme resolution, 05-Oct-2022). The central Udyam definition also uses turnover, and the MSME classification page explains it.
Capital investment subsidy for micro enterprises
| Taluka category | Subsidy | Source |
|---|---|---|
| Category 1 | 25% of the term loan, up to ₹35,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Category 2 | 20% of the term loan, up to ₹30,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Category 3 and municipal corporation areas | 10% of the term loan, up to ₹10,00,000 | Gujarat MSME scheme resolution, 05-Oct-2022 |
- Apply on time. Apply on the online portal within one year of the first loan disbursement, the start of commercial production or the date of the resolution, whichever is later (Gujarat MSME scheme resolution, 05-Oct-2022).
- Paid after production starts. The subsidy is paid only after commercial production begins (Gujarat MSME scheme resolution, 05-Oct-2022).
- The taluka decides the category. The resolution uses the taluka classification of the Industries and Mines Department resolution of 02-Nov-2020 (Gujarat MSME scheme resolution, 05-Oct-2022).
Interest subsidy for manufacturing MSMEs
| Taluka category | Interest subsidy on the term loan | Source |
|---|---|---|
| Category 1 | 7% a year, up to ₹35,00,000 a year, for 7 years | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Category 2 | 6% a year, up to ₹30,00,000 a year, for 6 years | Gujarat MSME scheme resolution, 05-Oct-2022 |
| Category 3 and municipal corporation areas | 5% a year, up to ₹25,00,000 a year, for 5 years | Gujarat MSME scheme resolution, 05-Oct-2022 |
- 1% more for women entrepreneurs, entrepreneurs with disabilities and registered startups in manufacturing (Gujarat MSME scheme resolution, 05-Oct-2022).
- 1% more for entrepreneurs below 35 on the date the term loan is sanctioned (Gujarat MSME scheme resolution, 05-Oct-2022).
- You still pay at least 2% of the interest on the term loan (Gujarat MSME scheme resolution, 05-Oct-2022).
The services sector has a separate interest subsidy table in the same resolution. Read it on the Commissionerate's site before you plan a services project.
What does not count as investment
Land and land development, working capital, goodwill, royalty and preliminary or pre-operative expenses are not counted as eligible fixed capital investment (Gujarat MSME scheme resolution, 05-Oct-2022). Plan your project report around plant, machinery and buildings.
How to apply
The Office of the MSME Commissioner, Gujarat, publishes the resolution, the guidelines, and an application form and checklist for each benefit (Office of the MSME Commissioner, Gujarat). Apply online within the time limit, and keep your bank's sanction and disbursement letters ready, since the subsidy is worked out on the term loan (Gujarat MSME scheme resolution, 05-Oct-2022).
Your next step
The subsidy is worked out on your bank term loan, so the loan comes first. Run the free loan readiness check to see how a lender may read your file, and read the project report guide. Other states are on the state schemes hub.
Frequently asked questions
A Gujarat government scheme, operative from 05-Oct-2022 to 04-Oct-2027, that gives capital subsidy, interest subsidy and other assistance to MSMEs (Gujarat MSME scheme resolution, 05-Oct-2022).
25%, 20% or 10% of the term loan, up to ₹35,00,000, ₹30,00,000 or ₹10,00,000, depending on the taluka (Gujarat MSME scheme resolution, 05-Oct-2022).
5% to 7% a year on the term loan for five to seven years, with 1% extra for some groups. The enterprise bears at least 2% (Gujarat MSME scheme resolution, 05-Oct-2022).
No. Land and land development cost are excluded (Gujarat MSME scheme resolution, 05-Oct-2022).
Within one year of the first disbursement, the start of commercial production or the resolution date, whichever is later (Gujarat MSME scheme resolution, 05-Oct-2022).
Sources
- Government of Gujarat: Aatmanirbhar Gujarat Scheme for assistance to MSMEs, resolution of 05-Oct-2022 , checked 03-Oct-2026
- Office of the MSME Commissioner, Gujarat: Aatmanirbhar Gujarat Schemes 2022 , checked 03-Oct-2026
- Ministry of MSME: state-wise Udyam registration dashboard , checked 03-Oct-2026