The Gujarat Government has rolled out its long-awaited Textile Policy 2024, issuing detailed guidelines that tighten eligibility criteria for expansion projects. The policy, effective from October 1, 2024, to September 30, 2029, narrows the geographical scope for incentive eligibility.
Under the new rules, only industrial undertakings located in notified industrial areas defined by the Urban Development and Urban Housing Department, and within municipal corporation limits, will qualify for incentives. Units situated within municipal limits but outside these designated areas will no longer be eligible.
This move aims to promote industrial development beyond congested urban centres, helping reduce pollution and ease pressure on existing infrastructure. Industry representatives from Surat noted that earlier, units both inside and outside notified industrial zones within city limits were eligible, but the new framework shifts focus to newer, less crowded regions where land is more available.
The policy provides support for new industrial units, diversification, and expansion projects, with incentives specifically targeting technical textile units across 12 key segments: Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech, and Sportech.
It also covers a wide range of textile activities including garmenting, apparel and made-ups, technical textiles, weaving, knitting, dyeing, processing, texturising, twisting, embroidery, and MMF spinning using polyester and viscose fibre. However, cotton spinning and synthetic filament yarn spinning are excluded from benefits.
Incentives include interest and capital subsidies, power tariff support, payroll assistance, funding for quality certification and technology acquisition, alongside measures to promote energy and water conservation.