Gujarat has emerged as one of the major beneficiaries of the Union Budget 2026–27, with a series of announcements aimed at strengthening the state’s role in finance, manufacturing, urban development, healthcare and tourism.
A key highlight is the extension of tax incentives for GIFT City. Units operating in the International Financial Services Centre (IFSC) will now be eligible for tax deductions for 20 consecutive years out of a 25-year period. The move is expected to attract global banks, fintech firms and investment funds, further cementing Gandhinagar’s position as India’s international financial hub.
Surat is set to receive a significant logistics boost with the announcement of a new Dedicated Freight Corridor linking Dankuni in West Bengal to the western industrial belt. The corridor is expected to reduce transit time, lower logistics costs and provide strong support to Surat’s textile, diamond and export-oriented industries.
Jamnagar will also benefit, with the Budget announcing upgrades to the World Health Organisation’s Global Centre for Traditional Medicine. The initiative aims to strengthen research, training and global outreach in Ayurveda and traditional medicine, enhancing Gujarat’s presence in the growing AYUSH and medical tourism sectors.
The Budget introduced City Economic Regions (CERs), focused development clusters around Tier II and Tier III cities, with each region set to receive ₹5,000 crore over five years. With cities such as Gandhinagar and Surat already emerging as growth centres, Gujarat is expected to play a key role in this urban expansion drive.
On the tourism front, heritage sites at Lothal and Dholavira will be developed into experiential cultural destinations with curated walkways and interpretation centres. The project aims to promote heritage tourism while creating local employment opportunities.
In addition to these initiatives, Gujarat is expected to benefit from nationwide schemes such as mega textile parks, chemical parks, enhanced MSME support and increased infrastructure spending.