Government of Gujarat announces new IT/ITeS Policy (2016-21).

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The Government of Gujarat today notified new policy and incentive scheme for attracting IT/ITeS industry in Gujarat. The policy has attractive incentives for creating IT/ITeS Parks as well as setting up IT/ITeS units. Gujarat has been a leader in the manufacturing sector.  However, with the current value creation becoming more technology driven, Gujarat is trying to leverage its world-class infrastructure, the quality of life, institutional arrangement in good governance, availability of skilled manpower through quality educational institutions such as IIT, DAIICT, Nirma Institute, IIIT Surat, IIM, CEPT and NID among others to give a push to IT led growth.

            It is predicted that innovations in the IT will drive  the global value creation over coming decade. Such growth will be building around innovations in cloud, mobile, social media, big data analytics, crowd- sourcing internet-of-things (IoT) and mobile applications. The policy aims to increase the current investment in IT/ITeS sector by ten times, increase the turnover from Gujarat based IT/ITeS industry to USD 15 billion, increase IT export from the State to USD 2 billion, create direct employment opportunities in the sector to one million youths.

            It is expected that investment in IT/ITeS industry will create an enabling environment and will also play the role of catalyst for the socio- economic development of the State.

            The policy and associated scheme provides for capital subsidy of Rs. 25 crores for the IT/ITeS Park in addition to reimbursement of registration fees and stamp duty charges on land/ office transactions, incentives on power tariff as well as reimbursement of electricity duty for the IT/ITeS units. The policy provides for reimbursement of EPF contribution for the new employment created during the policy period. VAT incentives, capital subsidy, interest subsidy, lease rental subsidy, reimbursement of registration and stamp duty, incentives on power tariff and electricity duty.

            The policy also lays emphasis on setting up R&D institutions, Finishing schools and provides incentives to units as well as IT/ITeS industry organization for participation in international trade fairs. To link incentives with employment creation for the youths, the policy provides that units availing assistance under the IT/ITeS policy will be required to take interns at a rate of minimum one intern for every 20 employees, on payment basis.

            For rapid rollout of policy and for creating right ecosystem, the Director of IT is designated as nodal agency for hand-holding and effective liaison.

            The State Government has also notified the scheme under the policy consistent with the ease of doing business norms. Accordingly, entire application process is simplified and timelines have been prescribed.