The State Government of Gujarat, India, is currently in the process of finalising its textile policy for the next five years. It is expected that the new policy may provide 30 percent capital subsidy apart from several other benefits. Higher capital subsidy may attract textile industries and investors from other states. The draft will be available soon before the industry for comment.
The current textile policy is going to end this month, and the State Government is expected to launch its new textile policy in New Year 2024, just before the Vibrant Gujarat Global Summit, scheduled to take place from January 10-12, 2024.
According to industry sources, the government has proposed interest subsidy and power tariff subsidy to new investment in textile units. Industries will also be entitled to have assistance for energy, water and environment conservation. They will also get financial assistance for technology upgradation and adopting green practices.
Ashish Gujarati, the Vice President of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) told, “Capital subsidy and other benefits will be main attraction. It will make textile industries from Maharashtra and other adjoining states come to Gujarat. Textile units will come back to the state after they had shifted to other states.”
Gujarati is one of the few industry members who have provided suggestions to the State Government for the formulation of the policy draft. The government is likely to come out with several benefits in its new textile policy, as it is felt that the textile value chain needs financial support. Sources said that the draft will be available for final consultation soon.
