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.

Gujarat, India, is finalising its new five-year textile policy, which is expected to offer a 30 per cent capital subsidy and additional benefits to boost investment.
The policy aims to attract textile industries from other states, with incentives including interest and power tariff subsidies, and support for energy, water, and environmental conservation.

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 Fibre2Fashion, “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.

Fibre2Fashion News Desk (KUL)