The state has maintained a stronghold in cotton yarn and fabric production, but it is now looking to scale up its role in the global textile value chain.
Gujarat is steadily reinforcing its position as a major player in India’s textile export market. Over the past five years, it has consistently ranked as the second-largest textile exporter in the country. In the financial year 2023–24, Gujarat recorded textile exports worth $5,749 million, trailing only Tamil Nadu.
The state has maintained a stronghold in cotton yarn and fabric production, but it is now looking to scale up its role in the global textile value chain. The recently introduced state textile policy is expected to play a pivotal role in this transformation by encouraging new investments, particularly in garment manufacturing. This policy focuses on developing technical textiles, integrated infrastructure, and value-added production, which could significantly boost Gujarat’s global competitiveness.
The surge in textile exports during 2021–22 was largely driven by rising cotton prices. However, with cotton prices stabilising at around Rs. 53,500 per candy (356 kg), manufacturers are now in a better position to plan for the long term with more predictable input costs.
At the national level, initiatives such as the Production-Linked Incentive (PLI) scheme for technical textiles and man-made fibres (MMF), along with the PM MITRA program aimed at establishing world-class textile parks, are further enhancing industry competitiveness.
Gujarat’s textile journey gained momentum with the 2012 policy, and the state continues to benefit from its strong foundation in cotton fabric and yarn exports. Despite a temporary dip in demand from European markets due to geopolitical tensions, Gujarat remains well-positioned to gain from the global trend of diversifying sourcing away from Bangladesh and China—a shift accelerated by the Covid-19 pandemic.
News source: Apparel Resources