Gujarat will come out with a new textile policy by the end of August. The policy aims at attracting Rs 1 lakh crores in investments and creating 10 lakh jobs in the textile industry over the next five years. The new policy is expected to dole out several incentives, including cheap power, to attract industries to the state. The textile industry will have GST reimbursed. The reimbursement will be given in lieu of sops given to the sector under the earlier value added tax regime.
Meanwhile, all schemes under the textile policy of 2012 will be continued in the new policy as well. The current textile policy, announced in 2012, will expire this September. A task force has been forced to study incentives offered under the textile polices of other states like Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu and Uttar Pradesh. It may replicate many of their schemes given the geographical and industrial similarities between Gujarat and these states.
The new policy envisages a special thrust on garments and technical textiles and creating a direct link between cotton growers and industry. There will also be a focus on establishing textile parks within GIDC estates and in other parts of the state.