Gujarat Government announces Fintech Hub, Semiconductor School in 2024-25 budget

The Gujarat Government has presented a Rs 3.32 lakh crore budget for the financial year 2024-25 where it announces projects and schemes including a Fintech Hub at Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, a semiconductor school at Sanand and a manufacturing hub for space sector at Khoraj near Ahmedabad.

Tabling the Rs 146 crore surplus budget which is 10.44% more than the budget for the current fiscal in the state legislature, Finance Minister of Gujarat, Kanu Desai said that Gujarat has been growing at 14.89% over the last two decades. Gujarat’s contribution to national GDP has also increased from 5.1% in 2000-01 to 8.2% currently.

An amount of Rs 52 crore has been allocated to build a Fintech hub at GIFT City and another Rs 100 crore to develop Sabarmati Riverfront near GIFT City.

At present, the Riverfront on river Sabarmati is 11.5 kms long and under Phase-2, 5.5 kms work is under progress. The stretch of an additional 5 kilometers near GIFT City will be taken up shortly under Phase-3 of development. According to the government, it plans to extend the Riverfront to 38.2 kilometers in five phases making it “the longest and most scenic riverfront in the world.” 

At Sanand (near Ahmedabad), the government along with Micron Technology is planning to develop a school for semiconductors to create skilled youth for the semiconductor sector. A provision of Rs 33 crore has been made of this purpose.

Under the semiconductor and electronics policies, the government has provided Rs 1,049 crore for providing assistance to industries coming to the state in this sector.

The Government of Gujarat has also planned to build a “manufacturing hub” in a phased manner at Khoraj near Ahmedabad for development of an “economy related to space sector.” A provision of Rs 60 crore has been made to attract the ecosystem of space manufacturing companies by setting up design, manufacturing and testing facilities for payload satellites through the new Space Tech policy.   

For FY 2024-25, the budget has not introduced any new taxes. The government has announced a year-long “amnesty scheme” under which liabilities of Motor Vehicles Tax, interest, penalty, and any challans will be waived off for those vehicles that are over eight years old. This decision to encourage owners to give up their old vehicles will provide a tax relief of Rs 700 crore for approximately 52,000 vehicle owners.

The government also decided to waive off stamp duty of approximately Rs 54 crore for nine lakh members of registered cooperative credit societies for availing loans up to a limit of Rs 50,000.