Gujarat govt narrows area for expansion in Textile Policy 2024

India’s western state of Gujarat has operationalised its much-awaited Textile Policy 2024 with the issuance of guidelines. The state government has tightened conditions for the expansion of existing textile units by narrowing the eligible geographical area. The policy will remain in force for five years, from October 1, 2024, to September 30, 2029.

The operational guidelines state: “An industrial undertaking that falls under a Notified Area (determined by the Urban Development and Urban Housing Department) and is located within the limits of a Municipal Corporation (as notified on date) will be considered eligible for incentives.” This means that only undertakings situated in notified industrial areas within municipal limits will qualify for incentives. Units located outside notified industrial areas but still within municipal limits will not be eligible under the scheme.

Gujarat has operationalised its Textile Policy 2024 with new guidelines.
The government has restricted incentives to units in notified industrial areas within municipal limits, aiming to push development beyond city boundaries.
The policy supports new units, diversification, and technical textiles with subsidies and incentives, while excluding cotton and filament yarn spinning.

This condition indicates that the government aims to encourage industrial development outside city limits to avoid pollution and reduce pressure on existing infrastructure. An industry leader from Surat noted that earlier units within and outside notified industrial areas but within city limits were eligible. The revised approach seeks to attract fresh investment in new areas where land is more readily available.

The policy is designed to provide incentives for new industrial units, diversification, and the expansion of existing ones. Technical textile units covering 12 segments—Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech, and Sportech—are included under its scope.

Additionally, incentives will be offered across various manufacturing activities, including garmenting, apparel and made-ups, technical textiles, weaving, knitting, dyeing and processing, texturising, twisting, embroidery, and MMF spinning (to produce yarn from polyester and viscose fibre). However, spinning of cotton and synthetic filament yarn is excluded.

The policy provides for multiple benefits, including interest subsidy, capital subsidy, power tariff subsidy, payroll assistance incentives, support for quality certification, technology acquisition, and measures to encourage energy and water conservation.

Fibre2Fashion News Desk (KUL)