Gujarat Chamber dubs State Textiles Investment Policy unattractive

Ahmedabad, July 26 (KNN) The Gujarat Chamber of Commerce and Industry (GCCI) textile task force recently submitted a report to the state government stating that the state’s unattractive policy is pushing textile investments to other states, reported TOI. 

For instances, the textile sector policies of states such as Telangana, Maharashtra and Madhya Pradesh are more attractive, and textile majors such as Welspun, Arvind, Donear and General Group are setting up plants there.

After 2017 the state has been struggling to pull in new investments in the textile sector, said the report. 

The Gujarat Garment Policy expired in 2022 and no new incentive policy has been announced thus far. 

The existing Gujarat Textile Policy will expire in December 2023, and textile players say the state must announce a new attractive policy to ensure that players in this employment-heavy industry come to the state. 

Rahul Shah, co-chariman of the GCCI textile task force, said, “The Gujarat textile policy of 2012 expired in 2018 and a new policy was declared in 2019 which did not offer competitive incentives. Other states have announced lucrative schemes, which is resulting in the shifting of new investment to other states. Industrialists from other states who had earlier brought investment in Gujarat, are now exploring other states, negotiating with them and finalizing their investments.”

Sandip Shah, a member of the GCCI textile taskforce, said, “Many companies have committed significant investments outside Gujarat in the last two years, and some even before this period. Some of these companies have bases in Gujarat while others are those that have still not come here.”  (KNN Bureau)