Gujarat plans Fintech Hub, Semiconductor School & Manufacturing hub for space sector in 2024-25 budget

In a significant budgetary announcement, the Gujarat government has allocated ₹3.32 lakh crore for the fiscal year 2024-25, revealing plans for the establishment of a Fintech Hub at GIFT City, a Semiconductor School in Sanand, and a manufacturing hub for the space sector. Presenting the ₹146 crore surplus budget, which marks a 10.44 percent increase from the current fiscal year, Finance Minister Kanu Desai emphasized Gujarat's robust growth, contributing 8.2 percent to the national GDP, up from 5.1 percent in 2000-01.

The budget includes a provision of ₹52 crore for the creation of a Fintech hub at GIFT City, along with an additional ₹100 crore for the development of the Sabarmati Riverfront near GIFT City. The government aims to extend the Riverfront to 38.2 kilometers in five phases, envisioning it as the "longest and most scenic riverfront in the world."

Collaborating with Micron Technology, the state government plans to establish a school for semiconductors at Sanand, allocating ₹33 crore for this purpose. Under the semiconductor and electronics policies, ₹1,049 crore has been earmarked to assist industries entering the state in this sector.

In a strategic move, Gujarat plans to set up a phased "manufacturing hub" at Khoraj near Ahmedabad, focusing on the space sector. A provision of ₹60 crore has been allocated to attract space manufacturing companies through the new Space Tech policy.

To boost the logistics sector, the government will double the recycling capacity of the shipbreaking yard at Alang and allocate ₹100 crore for the development of Gatishakti Cargo Terminal at Rafaleshwar and Juna Bedi port. Additionally, ₹25 crore has been designated for infrastructure development in the aviation sector.

The textile industry is set to receive a boost with a provision of ₹1,600 crore under the textile policy, while ₹1,550 crore is allocated for MSME development, and an additional ₹1,145 crore for large industries. The government has also set aside ₹440 crore for the installation of a deep-sea pipeline to manage treated wastewater from industrial estates.

Addressing urbanization, the finance minister proposed the conversion of seven municipalities into Municipal Corporations, increasing the total number to 15. Furthermore, a single emergency number, 112, will be introduced to provide centralized fire, police, and emergency services.

The budget introduces no new taxes for the financial year 2024-25. Additionally, the government has announced a year-long "amnesty scheme," waiving off all liabilities for Motor Vehicles Tax, interest, penalty, and challans for vehicles over eight years old, providing a tax relief of Rs 700 crore for approximately 52,000 vehicle owners.

Furthermore, stamp duty of around ₹54 crore for nine lakh members of registered cooperative credit societies availing loans up to ₹50,000 will be waived off, showcasing the government's commitment to fiscal reforms.

HBL