Gandhinagar: The Gujarati government unveiled its new textile strategy today, which calls for a 10–35 percent capital subsidy. The new policy includes provisions for a 5 to 7% interest subsidy, whereas the prior program gave a 5% to 6% subsidy. A Re. 1 electricity subsidy per unit has also been implemented.
Gujarat’s Chief Minister, Bhupendra Patel, introduced the new policy during the Udyog Saahasikta Divas celebration, reaffirming the state’s commitment to boosting the textile industry’s competitiveness, sustainability, and ability to create jobs.
The policy concentrates on important industries including apparel, technical textiles, knitting, weaving, and MMF manufacturing, with a focus on growing the latter as it is vital to sectors like infrastructure, healthcare, and the automotive industry.
It provides a number of financial incentives to promote growth and investment in the textile industry. Depending on location, activity, and employment, they include a Capital Subsidy that can vary from 10% to 35% of eligible fixed capital investment (eFCI), with a maximum of ₹150 crore. Furthermore, for a maximum of eight years, an interest subsidy of 5% to 7% of eFCI is offered. Other incentives are a five-year ₹1/unit Power Tariff Subsidy, Payroll Assistance of ₹2,000 to ₹5,000 per month per worker (with extra help for female workers), and special payroll and training support for Self-Help Groups (SHGs).
The program places a strong emphasis on creating jobs and offers specific assistance to labour-intensive businesses with over 4,000 employees, at least 1,000 of whom are women. These units will be eligible for increased subsidies.
A ₹352 crore investment will be made to build a state-of-the-art Textile Park in Vansi, Navsari district, as part of the PM MITRA plan. The objectives of this project are to create thousands of employment, draw in new investment, and enhance Gujarat’s textile infrastructure.
The Gujarat Textile Policy 2024, according to Chief Minister Bhupendra Patel, is a progressive project meant to strengthen the state’s textile sector. In addition to bolstering Gujarat’s standing as a leader in the textile industry, this program encourages economic empowerment, especially for young people and women. We are building the foundation for a sustainable and internationally competitive textile industry with this strategy,” he continued.
MoS Harsh Sanghavi and Cabinet Minister Balvantsinh Rajput, who oversees industries, MSMEs, cottage, Khadi, and rural industries, were also present at the ceremony. During the occasion, Sanghavi underlined that the Chief Minister’s new policy will prioritise giving local communities meaningful job possibilities. “Gulf continues to be a safe and secure destination for investments, as the Home Minister assures all investors,” he remarked.