New Textile Policy Expected to Attract ₹30,000 Crore in Investments to Gujarat, Says CM

Gujarat Chief Minister Bhupendra Patel launched the new Textile Policy 2024 on Tuesday, projecting that it will attract ₹30,000 crore in investments and establish the state as a hub for "technical textiles." Speaking at the policy launch in Gandhinagar, Patel explained that a comprehensive analysis of the textile value chain highlighted the need for special focus on the garment, apparel, and technical textiles segments.

“The new policy will focus on making Gujarat a hub for technical textiles,” Patel stated, emphasizing its significance for the state's economic growth.

He reflected on the success of the previous 2012 textile policy, which was introduced by former Chief Minister Narendra Modi, noting that it established 35 lakh spindles and attracted ₹35,000 crore in investments, creating 2.5 lakh job opportunities. Patel mentioned that subsequent policies for garments and apparel were introduced in 2017 and 2019, respectively.

Under the new Textile Policy, production units in Gujarat will benefit from capital subsidies ranging from 10% to 35%, as well as interest subsidies of 5% to 7% per annum for operational periods of 5 to 8 years. Additionally, these units will be eligible for a ₹1 per unit power tariff subsidy for five years and payroll assistance of ₹2,000 to ₹5,000 per worker monthly for five years.

Labour-intensive textile units will receive increased capital subsidies of 25% to 35%, along with a maximum interest subsidy of 7% per annum for eight years and extended payroll assistance for a decade.

This policy is anticipated to enhance Gujarat's position in the textile sector while fostering job creation and investment in the industry.

HBL