Chhattisgarh is positioning itself as an emerging hub for textile and garment manufacturing by offering incentives of up to 200% of Fixed Capital Investment (FCI) under its Industrial Development Policy 2024–30. Under this framework, a garment project worth ₹100 crore could receive support of up to ₹200 crore, depending on factors such as investment size, employment generation, and eligibility criteria.
The initiative reflects the state government’s strategy to diversify its economy beyond traditional mineral-based industries by attracting large-scale textile investments. According to Rajat Kumar, Secretary of the Department of Commerce & Industries, the policy aims to simplify investment processes by combining ready-to-use infrastructure with a robust incentive structure.
A key component of this strategy is the development of textile parks in Nava Raipur, India’s first greenfield smart city. These parks offer plug-and-play infrastructure with plots ranging from 0.3 to 10 acres, along with essential facilities such as uninterrupted power and water supply, common effluent treatment plants, and integrated waste management systems. Designed for round-the-clock operations, the parks also support night shifts for women employees and provide worker housing within the industrial ecosystem.
Strategically located along the Mumbai–Howrah railway corridor and approximately 500 kilometres from Visakhapatnam Port, the parks offer strong connectivity to both domestic and international markets. Raipur Airport further enhances accessibility, linking the region to major Indian cities within a short travel time.
In addition to capital incentives, the policy includes employment-linked benefits, offering monthly support of ₹6,000 for women workers and ₹5,000 for male workers over a five-year period. It also provides training subsidies of up to ₹15,000 per employee, full exemption from electricity duty for 12 years, freight assistance, and other financial benefits.
Chhattisgarh also has a strong base in silk production, particularly Tussar silk, with an annual output exceeding 200 metric tonnes. The region’s Champa silk has received a Geographical Indication (GI) tag, further strengthening its textile credentials. To support workforce development, the state has introduced the Right to Skill Act, aimed at building industry-ready talent.
Several companies, including Swift Merchandise and Punit Creation, are planning investments in the region, which are expected to generate more than 10,000 direct and indirect employment opportunities.
Illustrative Incentive Breakdown
For a garment unit investing ₹100 crore and employing around 3,000 people, the incentive structure may include:
- Fixed Capital Subsidy: ₹52 crore
- Interest Subsidy: ₹9.62 crore
- Employment Assistance: ₹99 crore
- Transport Subsidy: ₹20 crore
- EPF Reimbursement: ₹10 crore
- Additional Subsidies: ₹10 crore
This brings the total estimated incentive support to approximately ₹200 crore, subject to project-specific conditions.
Conclusion
With its comprehensive incentive package, strategic infrastructure, and focus on skill development, Chhattisgarh is actively working to attract textile investments and establish itself as a competitive destination for garment manufacturing in India.