Jobs, incentives among highlights as Gujarat govt announces new textile policy

Among the incentives offered in the ‘Gujarat Textile Policy 2024’ is a capital subsidy for new industrial units ranging from 10% to 35% of eligible fixed capital investment (eFCI), capped at Rs 100 crore depending on location, activity, and employment. An interest subsidy of 5-7% cent of eFCI is available for up to eight years.

In another relief, the units availing electricity from discoms or using renewable power will be given a subsidy of one rupee per unit for five years from the date of commencement of production.

Payroll assistance of Rs 2,000 to Rs 5,000 per month per worker (with an additional support for female workers), and dedicated support for SHGs in the form of payroll and training assistance have also been offered in the new policy. Apart from this, assistance will also be offered for quality certification, reducing energy and water consumption, and technology acquisition.

Addressing the gathering of delegates, the Chief Minister said, “For the first time, the state government has emphasised upon apparel, garment, and technical textile and policy has been framed accordingly. The textile sector plays an important part in the ‘Make in India’ vision of PM Narendra Modi and also in making India the ‘world’s third-largest economy’ in the future. The policy has been made to make Gujarat a world leader in technical textiles.”

He also added, “More importance has been given to women self-help groups in the new textile policy so that they can become self-reliant and increase their income. The new policy will not only benefit the industry but also cotton growers of the state, youth and women.”

Gujarat has been known as the denim capital of the country, the Chief Minister emphasised. “PM Modi had — during his tenure as the CM in Gujarat — had worked on the vision of a rise in the production of cotton and textile industry gets benefits. He had established Gujarat as a policy-driven state by implementing sector-specific policies. The ease of doing business, and with industry-friendly proactive approach, the Vibrant Gujarat Summit was started.” Gujarat became a revered investment destination due to the efforts of the government, he said.

“PM Modi introduced five F-policy: farm to fibre to fabric to factory to fashion and to foreign textile policy. With this vision, an investment of over Rs 35,000 crores was done in the textile sector and over 2.50 lakh people got employment,” the Chief Minister said. With the new textile policy, over 5 lakh people will get direct and indirect employment, he underlined.

New policy welcomed
Welcoming the new textile policy 2024, Kamal Vijay Tulsian, President of Pandesara Industrial Association, said, “The new textile policy will benefit the Man-Made Fabric (MMF) industry. This is like a Diwali gift given by the state to the industry players and it will attract new investments. The textile policy will be a boost to various chains of the textile sector.”

Southern Gujarat Chamber of Commerce and Industry (SGCCI) chief Vijay Mewawala said, “SGCCI demanded that an upfront capital subsidy should be given in the state’s new textile policy. The textile units (garments and technical textile) established in the taluks (Rural), falling under category three, will get a maximum capital subsidy of Rs 50 crore. The textile units established in the above category three taluks in the field of weaving, knitting, and processing will be eligible for subsidy of up to Rs 40 crore. Weaving, knitting, and processing or spinning units established in talukas falling under category one will also have a maximum capital subsidy cap of Rs 50 crore. And in garments and technical textile sector, this amount will go up to Rs 100 crore.”

On the current trend of shifting and expansion of the textile units from Surat to Navapur in Maharashtra, SGCCI president Vijay Mewawala said, “This policy will reduce the units going or planning to shift or expansion at Navapur. This new policy will also give boost to the garment sector in Surat and South Gujarat. We have since long demanded incentives in the garment sector which has been accepted and industry will be more benefitted.”

The Gujarat Chamber of Commerce and Industry also acknowledged the textile policy’s focus on new industrial units, which are poised to create substantial employment opportunities.

Minister of State for Home Harsh Sanghavi said, “Gujarat has over 100 Fortune 500 companies. The GDP of Gujarat is 8.22%. In 2022-23, the Gujarat export figure is Rs 22 lakh crores, which is 33% of the country’s total exports. In the last two decades, Gujarat has received Foreign Direct Investment (FDI) of $55 million (Rs 462 crore). The new policy will benefit the industry and generate a large number of jobs.”