Gujarat Textile Policy Extended, Investment In Textile Sector To Boom

Trade & Policy

Gujarat Textile Policy Extended, Investment In Textile Sector To Boom

The highly successful Gujarat Textile Policy has been extended by the State government for another one year which was due for expiry on 4^th September 2017. The five year term policy was announced in 2012 by then Gujarat Chief Minister Narendra Modi with his 5F formula for textile sector’s growth. Gujarat Government yesterday released an order which says that “State Govt. has received various representations from the textile units as well as the stake holders to extend the textile policy.” The Government Resolution issued by Industries and Mining Department also said “On the other hand, Govt. has reviewed the impact of the Gujarat Textile Policy 2012 and it shows that the policy was very effective in terms of bringing investment as well as generating employment especially in rural areas. The policy has also strengthened the entire textile industry value chain.” Thus, the state government has extended the Gujarat Textile Policy till 3^rd September 2018 while all the terms, conditions and benefits would be same as earlier.

Gujarat has been the top investment destination for textile sector in India since the introduction of the Gujarat Textile Policy in 2012. Though many other states have announced matching state textile policy, textile entrepreneurs preferred Gujarat for their investment as the state has presence across entire natural and man-made (synthetic) textile value chain creating an industry friendly eco-system. The extension of the Gujarat Textile Policy would provide good impetus to the entrepreneurs who were just waiting for a clear direction from the state government.

In the mean time, Gujarat is also hosting a large scale international textile machinery exhibition – ‘ITMACH India’ this year in Gandhinagar from 7-10 December. It would be an ideal platform for both the textile entrepreneurs and textile technology and machinery suppliers to discuss new projects and investment plans. The success of the Gujarat Textile policy can be measured by the investment that it has generated in the last five years. Now, the extension of the policy indicates Govt.’s intent to support the textile industry and investment in the sector is expected to pick up further momentum. Government sources indicate that textile sector being highly employment generating sector, thrust is going to be generating employment in rural cotton growing regions. Under Gujarat Textile Policy, entrepreneurs receives 5% interest subsidy (7% interest subsidy for spinning units and garment / made-up units) and VAT refund as well as low cost power along with host of other incentives.