Gujarat Government Introduces Textile Policy 2024

The Gujarat government has launched the Textile Policy 2024, significantly enhancing subsidies for the textile industry, particularly for the man-made fiber sector. The new policy increases capital investment subsidies from 10% to 35%, with a maximum cap of Rs 100 crore, and introduces credit-linked interest subsidies of 5-7% for new enterprises. Additionally, the policy offers payroll assistance to workers and a tariff subsidy on power consumption, aimed at reducing operational costs for MSMEs. This change comes as many textile units were considering relocating to Maharashtra due to better power rates. The introduction of these incentives is expected to revitalize the textile industry in Surat and across Gujarat, reversing previous migration trends. Industry leaders have welcomed the policy as a necessary step to maintain Gujarat's competitive edge in textile production.