After a 10-month delay following the expiration of the previous policy on Dec 31, 2023, the Gujarat government has announced Textile Policy 2024 for the state. Thenew policy introduces key financial incentives that aim to revitalise the textile industry in Surat and across the state.
A major highlight of this policy is the introduction of a 25 per cent capital subsidy for the first time.The policy also reduces the interest subsidy from 5 per cent to 2 per cent. However, the Rs 1 per unit power subsidy has been extended to all textile units. The Gujarat Government also allocates funds worth Rs 1,107 crore to support approximately 5,592 textile units in Surat and other regions.
The capital subsidy offers substantial benefits to textile traders by covering a portion of their investment costs. For instance, if a textile entrepreneur invests Rs 100, the government will provide Rs 40 as a subsidy, reducing the burden of capital expenditure.
Surat has long been renowned for its thriving textile sector, particularly in sarees and dress materials, with products exported across India and internationally. However, despite this success, inadequate infrastructure remains a critical challenge. The city’s ability to scale up and compete globally is hindered by a lack of robust facilities, unlike countries such as China and Bangladesh.
Recognising this need for skilled labor in the city, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) plans to launch a Skill Development Center to train workers in operating modern machinery and improving technical skills. This initiative will help local industrialists focus on garment production, a segment with vast growth potential for Surat’s market.
