The Gujarat Government is set to introduce a wide-ranging set of procedural reforms across key departments to further strengthen the Ease of Doing Business (EoDB) ecosystem in the state. The proposed changes, aligned with the Centre’s directives, were discussed in detail during the state cabinet meeting held on Wednesday and are aimed at reducing regulatory burdens, simplifying approvals, and improving operational efficiency for businesses.

Industrial Sector and GIDC Reforms

A major thrust of the reforms is focused on the industrial sector, particularly the Gujarat Industrial Development Corporation (GIDC). The government plans to optimise land use in existing and upcoming industrial clusters while revisiting industrial area allotment policies. Proposed changes include enabling land parcel pooling and splitting, allowing mortgage facilities, and offering greater flexibility in land-use changes linked to changes in business activity.

The reforms also propose conversion of leasehold land to freehold and permit subleasing, transfer, sale, or reassignment of industrial plots, including transfers to joint ventures and subsidiary companies. In a move aimed at supporting workforce welfare, the government is also considering allowing low-cost and Economically Weaker Section (EWS) housing within industrial areas. Together, these steps are expected to promote MSME growth and make Gujarat’s industrial zones more attractive to investors.

Education Department Simplification

To ease compliance for private educational institutions, the education department plans to remove the requirement of an essentiality certificate, reduce other mandatory certifications, and revise land requirement norms for new institutions. These measures are intended to cut down bureaucratic processes and encourage private participation in the education sector.

Energy and Petrochemicals Push

In the energy and petrochemicals sector, the government is focusing on faster service delivery. Proposed reforms include speeding up the release of electricity connections for residents and businesses and eliminating the need for field inspections for power connections. This is expected to significantly reduce approval timelines and improve access to utilities.

Industries and Mines Reforms

The Industries and Mines Department is preparing a list of testing facilities available in state institutions to improve MSME access. The government also plans to remove double licensing requirements for MSMEs and amend municipal and other laws to eliminate dual licensing for approvals related to spas, police clearances, signage, salons, social functions, swimming-pool NOCs, discotheque NOCs, and liquor licenses.

Single-Window Approval System

A key proposal under consideration is the designation of a single nodal agency within the state IPA/IPB to handle pre-establishment, construction, connection, and operational approvals in notified industrial areas and parks. This single-window system is expected to significantly reduce bureaucratic delays and improve coordination among departments.

Emphasis on Self-Certification

The reform package also places strong emphasis on self-certification and declaration-based approvals. This includes Consent to Establish (CTE) and Consent to Operate (CTO) for white and green-category industries, sanitation certificates, and verification and stamping of low-risk commercial weights-and-measures instruments.

Expected Impact on Businesses and MSMEs

Senior officials indicated that several of these reforms could come into effect as early as April 2026. Once implemented, the changes are expected to lower compliance costs, simplify regulatory processes, and provide a strong boost to industrial development, MSMEs, and overall investment opportunities in Gujarat.

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