The weaving sector of Gujarat's textile industry, a prominent hub for Indian textiles, is set to receive a significant boost with the announcement by the central government that zero duty on high-speed weaving machines will continue. This decision has come as a major relief to the textile industry, which was apprehensive after the Union Budget had levied a 7.5% basic customs duty and 10% surcharge on high-speed weaving machines.

Textile associations from the state had previously written to the finance minister, requesting that imported machinery be granted the benefit of zero duty, as it had been for the past five years. The industry is now expected to receive new investments worth Rs 40,000 crore, with the continuation of zero duty for the next two years.

The investment is projected to reach $100 billion to cater to incremental market demand till 2030 and replace outdated machinery. It is estimated that $65 billion will be invested in the main production machinery, which is expected to create 15 million jobs by 2030.

The central government had previously provided relief through a concessional rate of duty for five years until March 31, 2023. It has now extended the concession for an additional two years, providing further incentives to the industry.