Gandhinagar: On Tuesday, Chief Minister Bhupendra Patel is set to unveil the New Gujarat Textile Policy-2024, as part of the Vikas Saptah celebrations. The announcement was confirmed by a government statement issued on Monday, noting that this policy will mark a significant step for the textile industry in the context of the current geopolitical environment and is expected to drive industrial growth in the state.

The previous textile policy expired on December 31, 2023, prompting industry leaders to urge the government to introduce a new policy. In response, state industry department secretaries recently held a meeting with textile industry stakeholders to gather their suggestions for the policy.

During the discussions, industry players advocated for the inclusion of capital and power subsidies. Vijay Kumar Mevawala, president of the Southern Gujarat Chamber of Commerce and Industry (SGCI), stated, “We have previously requested the state government to provide capital and power subsidies for the textile industry. We are hopeful that our requests will be addressed in the new policy, which we expect to be industry-friendly and to boost exports.”

Meanwhile, Surat-based textile business owners have begun expanding operations to Maharashtra, citing lower costs. C.K. Mania, a textile unit owner in Surat, shared his experience: “I run a factory in Sachin GIDC and have purchased a large plot in Navapur MIDC where we’ve completed construction of a new factory. We plan to start operations after Diwali with an investment of Rs 25 crore and an additional Rs 25 crore for further expansion.”

He further explained the financial benefits of expanding to Maharashtra: “In Surat, power costs Rs 8.50 per unit, whereas in Maharashtra, we benefit from power subsidies that bring the rate down to Rs 3 to Rs 5.30 per unit. The overall cost advantage—cheaper land, lower construction costs, and tax benefits—makes Navapur MIDC an attractive option.”

Industry stakeholders have urged the Gujarat government to take these factors into consideration when framing the new textile policy, ensuring that it remains competitive with policies from neighboring states like Maharashtra.

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