December 4, 2023

Gujarat Govt Survey On Textile Units Moving Out Of State

The government of Gujarat will undertake a survey to look into the issue of textile manufacturing units moving out of Gujarat to neighbouring states, particularly Maharashtra.

After receiving representations from elected representatives, the industries and mines department has been asked to conduct a survey of industries, especially those based in Surat and the districts surrounding it, that are moving to Maharashtra and other states.

“The government is expected to make policy corrections to ensure that industrial units do not move out to obtain greater benefits elsewhere,” TOI reported quoting government sources.

“This is being done to create a conducive atmosphere ahead of the upcoming Vibrant Gujarat Global Summit,” the sources added.

Some areas where policy corrections are expected are the minimum investment required to obtain incentives, the capital investment subsidy, net SGST reimbursement and electricity duty exemption.

Other policies which may be relooked include, environment friendly incentives, stamp duty exemption or reimbursement, benefits for fibre-to-fabric units and the minimum investment required in textile parks.

Other states such as Maharashtra offer more lucrative policies for the textile sector, which has led to units shifting there.

“Policy corrections will be announced soon in this regard. The state’s industrial policies are among the most competitive in the country, and certain changes will be made if needed,” an official said.

The textile task force of the Gujarat Chamber of Commerce and Industry (GCCI) had recently submitted a report to the government, stating that the textile sector policies of Telangana, Maharashtra and Madhya Pradesh are more attractive than that of Gujarat.

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