Gujarat : A Lucrative Investment Destination for Textile Industry

Introduction

Gujarat is rightly known as the “Textile State of India” as itcontributes 25%to the country’s manufacturing sector and 12% to the country's textile exports. There are several factors that have led to the development of the textile industry in Gujarat which are analyzed below.

Availability of Raw Material

Gujarat is the largest producer (33%) and exporter (60%) of cottonin the country. Gujarat is also the largest producer of denim(65%) in the country and 3rdlargest in the world, with a billion metrecapacity. Gujarat is also called “Denim Capital of India”.

Home to Machinery Manufacturers

Gujarat is home to more than 50% of the country’s processing machinery manufacturers and 90% of weaving machinery manufacturers

Boasts Plethora of Manufacturing Units

Gujarat is abode to more than 1500 medium and large textile units and 600 medium and large textile processing houses.

It is largest manufacturer of man-made filament fabric (38%) and man-made fiber (31%). It is also the 2ndlargest manufacturer of cotton fabric, producing over 390 million metres/annum. Gujarat manufactures 30%of the country’s woven fabric.

The Sintex Industries located in Gujarat is Asia’s largest manufacturerof corduroy fabrics.

Skill Development

The following institutions are located in Gujarat, which focus on skill development in the textile sector:

·         Ahmedabad Textile Industrial Research Association (ATIRA), Ahmedabad

·         Man-made Textile Research Association (MANTRA), Surat

·         National Institute of Fashion Technology (NIFT), Gandhinagar

·         Apparel and Leather Technics (ALT) Training College, Ahmedabad

·         National Institute of Design (NID), Ahmedabad

·         Surat Education and Research Society,Surat

Further, the Ministry of Textiles, Government of India, has declared ATIRA as a Centre of Excellence (CoE) for composites. The composite centre will help in the development of entire value chain of textile industry.

Presence of Leading International and National Players

Several national players have taken advantage of the benefits offered by the state including Arvind Mills, Welspun, VardhamanGroup, Alok Industries, Raymond, Garden Silk Mills, Mafatlal, Aditya Birla Nuvo.

Some of the international players located in Gujarat are Finnish firm Ahlstrom, American firm HygienicsCorporation, Austrian firm TenCateGeosynthetics.

Textile Policy

Gujarat has formulated its own textile policy. Until recently, the textile industry in Gujarat was governed by the Textile Policy of 2012. To a great extent, the policy served the purpose in the segments of cotton ginning and pressing, spinning, lower-end technical textile, training centres and textile parks. However, the segments of weaving, processing, garments-apparel and high end technical textile sectors required more focus and development. In order to give a boost to the industry, the textile policy has been revised and the Textile Policy of 2017 was notified in October, 2017. The Policy aims to create 1,00,000 job. The new scheme includes interest subsidy, payroll assistance, special concessions in power tariff, plug and play systems for apparel manufacturing, support for establishing mega apparel park and skill development amongst other incentives.

Conclusion

 

Gujarat enjoys a unique position in the textile sector in India having abundance of raw material and manufacturing units. The presence of several leading in Gujarat is also a testimony to the fact that Gujarat is a lucrative destination for investment. However, what remains to be seen is how the new textile policy of 2017 would be put into execution and deliver the promise of creating 1,00,000 jobs in the sector.

 -    By      Varsha G Subramanian

 

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