The Gujarat government’s recently unveiled textile policy is set to revolutionise the state’s textile industry, positioning it as a global leader in the sector. Gujarat governmentThe policy introduces a range of incentives and subsidies, aimed at attracting significant investments and fostering growth across the entire textile value chain.
Key Highlights of the New Policy:
- Capital Subsidy: For the first time, the state government has introduced a capital subsidy of up to 35% to encourage new investments in the textile sector. This move is expected to attract global giants and domestic players alike.
- PM Mitra Parks: The policy also emphasises the development of PM Mitra Parks, which will serve as integrated textile manufacturing clusters. These parks will offer world-class infrastructure and incentives to attract large-scale investments.
- Support for MSMEs: The policy extends support to MSMEs in the textile sector, including payroll assistance and other incentives. This will empower small and medium-sized businesses to expand their operations and contribute to the overall growth of the industry.
- Focus on Job Creation: A key objective of the new policy is to create employment opportunities. The incentives and subsidies offered are designed to encourage job creation, particularly in the garment and technical textiles segments.
Industry Reactions:
Industry leaders have expressed optimism about the new policy’s potential to transform Gujarat into a global textile hub. Rahul Shah, co-chairman of the GCCI textile taskforce, highlighted the significance of the capital subsidy in making Gujarat more competitive. Chintan Thaker, chairman of Assocham Gujarat State Council, emphasised the importance of handholding for new units during their initial stages.
Gaurang Bhagat, secretary of the GCCI, noted that while standalone cotton spinning units may not benefit significantly, the policy’s focus on polyester and viscose, as well as cotton spinning within integrated projects, will drive growth in these areas.
Eligibility for the Old Policy:
For businesses that commenced production between January 1 and September 30, 2023, the option to avail benefits under the old textile policy remains available. This transitional measure ensures a smooth transition for these units.
The new textile policy is expected to propel Gujarat’s textile industry to new heights, attracting investments, generating employment, and solidifying the state’s position as a global leader in the sector.
