Gujarat aims to retain textile units
Gujarat Govt to address textile unit migration issue amid policy concerns.
The Gujarat government is taking steps to address the issue of textile units relocating from the state to neighbouring regions. In response to concerns raised by elected representatives, the Industries and Mines Department will conduct a survey focused on industries, particularly those in Surat and surrounding districts that are moving to states like Maharashtra. The goal is to make necessary policy adjustments to retain industries and create a favourable environment in anticipation of the Vibrant Gujarat Global Summit (VGGS).
Areas, where policy revisions are being considered, include the minimum investment required to avail incentives, capital investment subsidies, net SGST reimbursement, electricity duty exemption, eco-friendly incentives, stamp duty exemption or reimbursement, benefits for fibre-to-fabric units, and the minimum investment in textile parks. Presently, other states like Maharashtra offer more attractive policies for the textile sector, prompting businesses to relocate.
The Gujarat Chamber of Commerce and Industry’s textile task force recently submitted a report highlighting that states such as Telangana, Maharashtra, and Madhya Pradesh have more appealing textile sector policies. The Gujarat Textiles Policy will expire in December, and the Gujarat Garments Policy, which expired in 2022, remains without a replacement. Officials are committed to enhancing competitiveness through necessary adjustments in the state’s industrial policies.