Gujarat Launches Textile Policy 2024 With Rs 30,000 Crore Investment Target
The term of the previous five-year-long textile policy, announced in 2019, ended this year.
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The Gujarat government on Tuesday announced its new textile policy, offering a host of subsidies and financial incentives to the entrepreneurs wanting to set up units in the state. Unveiling the 'Gujarat Textile Policy 2024' at an event held in Gandhinagar, Chief Minister Bhupendra Patel said the state is expected to attract an investment of Rs 30,000 crore in the textile sector.
The term of the previous five-year-long textile policy, announced in 2019, ended this year.
"We expect that the policy will be instrumental in attracting an investment of Rs 30,000 crore in the textile sector. One of the objectives of this policy is to make Gujarat a global hub of the technical textile sector. We also made provisions to ensure higher income for women self-help groups engaged in this sector," the CM said.
An official release said the policy focuses on key sectors such as garments, technical textiles, weaving, knitting, and man-made fibre production, with a special emphasis on expanding technical textiles, which are essential for industries like automotive, healthcare and infrastructure.
The policy offers several fiscal incentives to encourage investment and expansion in the textile sector. These include a capital subsidy ranging from 10% to 35% of eligible fixed capital investment, capped at Rs 150 crore depending on location, activity and employment.
Additionally, an interest subsidy of 5% to 7% of eFCI is available for up to 8 years.
Other incentives include a power tariff subsidy of Rs1/unit for five years, payroll assistance of Rs 2,000 to Rs 5,000 per month per worker (with additional support for female workers), and dedicated support for SHGs in the form of payroll and training assistance, it said.
The policy emphasizes employment generation, providing targeted support to labour-intensive units that employ over 4,000 workers, including at least 1,000 female employees, the release said, adding that such units will receive enhanced subsidies.
The new policy promotes sustainability and innovation by encouraging investment in sustainable practices. Businesses are offered incentives for water and energy conservation, quality certification, and the adoption of advanced technologies.
Under the PM MITRA initiative, a state-of-the-art textile park will be established in Vansi in Navsari district, with an investment of Rs 352 crore, the release said, adding that this project aims to improve Gujarat's textile infrastructure, attract new investments, and generate thousands of jobs.
