Textile Policy

The state government of Gujarat, India, is currently in the process of finalizing 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. 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.

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. Additionally, textile units will receive a 7% interest subsidy for 10 years from the first disbursement of term loans. To further extend support, the policy offers power tariff subsidies of Rs 2 per unit for seven years. Furthermore, textile units will gain assistance for energy conservation, water conservation, environment conservation, technological upgrades, and the adoption of green practices.

According to the draft, the state government conducted an extensive analysis of the textile value chain and identified areas requiring attention. To bridge the gaps, the government decided to develop a new policy aimed at strengthening the value chain and supporting the textile industry in Gujarat.

In addition to the subsidies mentioned above and assistance, the draft policy proposes a special assistance package for textile parks. Such parks will receive financial aid equivalent to 25% of their capital expenditure for establishing common facilities and infrastructure, excluding land costs. Moreover, the developers of these parks will be eligible for a complete reimbursement of stamp duty paid on the purchase of required land.

These encompass activities within the textile value chain such as ginning & pressing, spinning, weaving, dyeing & processing, knitting, machine carpeting, machine embroidery, made-ups, technical textiles, and various other associated processes and activities.

This new textile policy aims to stimulate growth and development in the textile industry, creating a favorable environment for manufacturers in Gujarat. With the potential to attract investment and enhance sustainability, the implementation of this policy is eagerly anticipated by all stakeholders involved.