VGRC 2026 to Accelerate South Gujarat’s Textile Growth
The upcoming Vibrant Gujarat Regional Conference (VGRC) 2026, scheduled for May 1–2 at Auro University, is expected to provide renewed momentum to South Gujarat’s textile ecosystem, with a strong focus on investment, innovation and global market integration. The conference will bring together policymakers, investors, international buyers and technology providers, positioning itself as a key platform to strengthen industry linkages and accelerate industrial growth.
At the centre of this momentum is Surat, widely recognised as India’s man-made fibre (MMF) hub and often referred to as the country’s Silk City. Over the decades, Surat has evolved from a historic trading port into a globally competitive textile manufacturing cluster, now contributing nearly 90 percent of India’s artificial silk production. Its dominance in the MMF segment has made it a critical pillar of both domestic supply chains and export markets.
The scale of Surat’s textile industry highlights its importance. The city hosts over 240 textile markets and more than 70,000 traders, generating an estimated annual turnover of Rs 1.5 lakh crore. It provides employment to nearly 18–20 lakh people, making it one of India’s most labour-intensive industrial clusters. Supported by more than 600 processing units and an extensive network of power looms, Surat produces close to 60 million metres of fabric daily and accounts for around 65 percent of India’s MMF output, ensuring speed and efficiency across the value chain.
Global demand for Surat-made textiles continues to strengthen, particularly across fashion, performance wear and technical textile segments. Key export destinations include the United States, Israel and New Zealand, while specialised knitted fabrics and sportswear materials produced in the city are increasingly being used in international sporting events, reflecting growing global acceptance of its products.
Infrastructure development is expected to further enhance Surat’s competitiveness. Major projects, including high-speed rail connectivity, coastal road expansion and the upcoming PM MITRA Park, are set to improve logistics efficiency, reduce lead times and support export growth. These developments, along with ongoing technology upgradation across units, are aligning the cluster with global manufacturing standards.
Policy support has also played a pivotal role in the sector’s expansion. Under the Gujarat Textile Policy 2019, the industry has received subsidies exceeding Rs 2,300 crore through interest support, power tariff incentives and capital assistance for infrastructure and modernisation. Building on this, the Gujarat Textile Policy 2024 aims to attract new investments with capital subsidies ranging from 10 to 35 percent, while also promoting rural employment and strengthening the textile value chain.
Against this backdrop, VGRC 2026 is expected to act as a catalyst for the next phase of growth by facilitating foreign direct investment, enabling technology transfer and strengthening buyer–manufacturer connections. With strong industrial fundamentals, sustained policy backing and expanding infrastructure, Surat is well-positioned to further consolidate its status as one of the world’s leading textile manufacturing hubs.
