Despite an overall slump in India’s textile sector, Gujarat has performed remarkably well through policy support from both the Centre and the state government. The textile sector in the state has registered a growth of 18 per cent. The Textile Commissioner’s regional office in Ahmedabad reported that over the past decade since 2004, Gujarat has maintained a consistent growth of nearly 18 per cent. The Centre’s Technology Upgradation Fund Scheme (TUFS), along with the state government’s policy has helped entrepreneurs in the State to reap huge benefits in the sector.

Currently there are 144 composite mills including those for spinning, 897 cotton ginning and processing units, 22 surgical cotton units, 2,362 units for processing of readymade garments, 362 units for technical textiles, 513 power processing units and 1,146 hand processing units in Gujarat. Of these 95 per cent are located in Rajkot. Additionally, Gujarat also currently has 60 home textile units and 5,053 preparatory units for weaving.

Gujarat, which has been a hub for the textile industry since the 19th century, has been active in availing TUFS as compared to other states. According to records maintained by the regional office in the State, of the 5,136 applications made for 15 per cent of capital subsidy scheme, nearly 87 per cent originated from Gujarat. Of the Rs. 230.11 crore subsidy disbursed, 75 per cent was to units and entrepreneurs in Gujarat.

The capital subsidy scheme also allows for 20 per cent and 30 per cent subsidy exclusively for weaving units. For the former, nearly 28 per cent of 4,267 applications were from Gujarat while 25 per cent of R382.02 crore subsidy was disbursed to units in Gujarat. Under the 30 per cent subsidy scheme, about 46 per cent of 441 applications hailed from Gujarat and nearly 50 per cent of the R178.03 crore was also disbursed in Gujarat.