CM Launches New IT Policy To Generate 1 lakh Direct Jobs

| Updated: February 9, 2022 1:35 pm

Chief Minister Bhupendra Patel, Tuesday, unveiled new “IT/ITES Policy 2022-27” which offers both capital and operational support to Information Technology (IT) firms making investments in Gujarat, and promises to generate one lakh direct jobs. 

Mr Patel briefed that the new policy would take the state to “newer heights in IT sector” and will place Gujarat among top five performing states of India in IT sector. The policy was unveiled at a formal event in GIFT City in Gandhinagar and replaces the 2016-2021 policy that had set an ambitious target to increase exports up to USD two billion (Rs 13,000 crore), IT turnover to USD 15 billion (Rs 75,000 crore) and create 10 lakh direct jobs.

The chief minister also opined that the new policy will propel a eight-fold growth in IT exports from Rs 3,101 crore to Rs 25,000 crore. Currently IT exports form about one percent of the total exports from Gujarat.

State minister for Science and Technology Jitu Vaghani, also present on the occasion, elaborated that Gujarat is gearing to attract IT firms from other states. “Through this policy, we are making a fresh attempt to harness the chances we missed in the 1980s and 2000,” Vaghani said.

The policy provides support for both capital (CAPEX) and operational (OPEX) expenditures. “This is a unique model that gives flexibility to industries to plan their expenditures and addresses the viability concerns,” said Vijay Nehra, secretary, Science and Technology department while presenting the policy.

According to the official, GIFT City, 5G infrastructure and the government’s Bharat Net initiative for providing broadband connections to rural areas will drive future IT growth in Gujarat.

Under the new policy, the CAPEX support has been raised up to Rs 200 crore from the existing Rs 1 crore, the official said. For capital investments that are less than Rs 250 crore, a 25 percent CAPEX support of a maximum of Rs 50 crore will be provided.


  • The policy targets an employment generation incentive where a support of up to Rs 50,000 (male employees) to Rs 60,000 (female employees) will be given to the IT firm for hiring and retaining a new local employee for a year.
  • IT/ITeS units will be able to claim reimbursement on employer’s statutory contribution under Employees’ Provident Fund, like they did in the 2016-2021 policy.
  • The state government will reimburse 100 per cent of EPF amount for female employees and 75 per cent for male employees.
  • The government will provide CAPEX support of a maximum of Rs 100 crore for creating IT office space in an IT city or township.

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