Surat Based Garment Makers Lukewarm Towards Gujarat’s New Apparel Policy '17

Trade & Policy

Surat Based Garment Makers Lukewarm Towards Gujarat’s New Apparel Policy '17

Garment manufacturers in India’s largest man-made fabric (MMF) hub of Surat do not seem upbeat about the new garment and apparel policy-2017 just announced by Gujarat Chief Minister Vijay Rupani, but feel that it will benefit those planning to set up new units in Surat.

According to Dinesh Zaveri, the proprietor of Asian Fashion, which is a composite unit manufacturing salwar kameezes and suit-dupattas, Gujarat assembly elections will be held in December 2017 and the policy is yet another move by the ruling party to appease the textile sector, just before polls.

However, Zaveri was quick to add that the new apparel policy announced by the Gujarat government would certainly benefit those planning to set up new units in Surat.

Incidentally, Surat is home to more than 250 garment units employing more than 62,000 garment workers. Since eight years, these units have been manufacturing semi-stitched suit-dupattas and salwar kameezes. The monthly manufacturing capacity of these units is estimated to be at more than 4 lakh garments, which are supplied to Mumbai, Delhi, Uttar Pradesh, Bihar and Punjab.

Although there is not a single unit manufacturing suiting and shirting as well as other apparel including menswear in Surat, the apparel park special economic zone (SEZ) located at neighbouring Sachin has a few units manufacturing apparel and garments, which export directly to foreign countries. Owners of these units do not seem to be happy either.

Sachin-based apparel unit owners had made a proposal to the government in 2010, to de-notify the apparel park from its SEZ status, in order to cater to the domestic market, but their demand has not been accepted by the central government.

Federation of Indian Art Silk Weaving Industry (FIASWI) Chairman Bharat Gandhi stated that apparel and garment units are not viable in Surat, because compared to Tirupur (Tamil Nadu) and Andhra Pradesh, labour cost in Surat is very high.

Moreover, he stated that the government has launched the incentive scheme for the cotton sector, while Surat is home to a purely polyester-based industry.