Gujarat launches a new subsidy scheme on June 22, 2025, to boost small exporters, offering financial aid and infrastructure support. Targeting MSMEs, the initiative aims to enhance competitiveness in global markets, focusing on sectors like textiles, chemicals, and gems. The policy aligns with Gujarat’s goal to increase its 33% share in India’s exports, driving economic growth and job creation.
Gujarat Unveils Subsidy Scheme to Empower Small Exporters
On June 22, 2025, the Gujarat government rolled out a transformative subsidy scheme aimed at bolstering small and medium-scale exporters, particularly in the Micro, Small, and Medium Enterprises (MSME) sector. This initiative, announced by the state’s Industries and Mines Department, seeks to strengthen Gujarat’s position as India’s leading exporting state, which already accounts for 33% of the nation’s total exports in FY 2022-23, valued at INR 12 lakh crore.
The scheme provides targeted financial incentives, including interest subsidies on export loans, freight cost assistance, and funding for participation in international trade fairs. It also focuses on improving logistics infrastructure, such as export zones managed by the Gujarat Industrial Development Corporation (GIDC). Key sectors like textiles, chemicals, pharmaceuticals, gems and jewellery, and ceramics are prioritized, aligning with Gujarat’s dominant export portfolio.
A senior official from the Directorate General of Foreign Trade (DGFT) highlighted the scheme’s potential to address infrastructural bottlenecks faced by small exporters. “This policy is designed to reduce costs and enhance market access for MSMEs, enabling them to compete globally,” the official said. The state government has allocated INR 1,200 crore for FY26 to support these initiatives, building on its robust economic framework.
Gujarat’s export prowess, driven by petroleum products (38% of state exports), has been further strengthened by post-GST data accuracy, revealing a 27% export growth from FY 2021-22 to 2022-23. The new subsidy scheme also includes technology upgradation grants and export grievance redressal forums to streamline operations. Industry leaders, particularly from Surat’s diamond sector and Morbi’s ceramic hub, have welcomed the move, citing its potential to offset costs amid global competition.
The policy aligns with India’s Foreign Trade Policy (FTP) 2023, emphasizing trust-based partnerships with exporters. It complements national schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP), which was reinstated on June 1, 2025, to reimburse unrefunded taxes. Gujarat’s small exporters can now leverage both state and central incentives to boost cash flows and meet rising international demand.
Trade bodies like the Federation of Indian Export Organisations (FIEO) have lauded the initiative, noting that 98% of Gujarat’s 45,000 exporters fall under the MSME category. “This subsidy will empower small players to scale up, especially in emerging markets like Africa and Latin America,” said a FIEO spokesperson. The scheme also promotes value-added exports, such as castor oil derivatives and technical textiles, to diversify Gujarat’s export basket.
With Gujarat’s gross state domestic product (GSDP) reaching INR 25.68 lakh crore in FY 2023-24, the state aims to further solidify its economic dominance. The subsidy scheme is expected to create jobs, enhance export competitiveness, and support India’s national goal of achieving USD 1 trillion in exports by 2025.
Disclaimer: This article is based on information sourced from government announcements, industry reports, and trade organizations as of June 22, 2025. Readers are advised to verify details with official sources for the latest updates.