Gujarat’s new textile policy has huge incentives in taxes. The policy aims at making Gujarat a textile sector hub and ensuring the textile sector leads in global competitiveness. Gujarat’s last textile policy was unveiled in 2012 and it expired last year.

Benefits will be set off against the SGST levied from the textile sector. Power tariff will be waived. Investment to the tune of Rs on lakh crore is expected as also job creation for 10 to 12 lakh people. There is a special element in this policy that is about women operated textile units that will get additional benefits.

Conventional textiles of Gujarat like patola, bandhani and jharikam will get an extra boost from the policy. Meanwhile, all schemes under the textile policy of 2012 will be continued in the new policy as well. The textile industry will have GST reimbursed. The reimbursement will be given in lieu of sops given to the sector under the earlier value added tax regime.

The new policy envisages a special thrust on garments and technical textiles and creating a direct link between cotton growers and industry. There will also be a focus on establishing textile parks within GIDC estates and in other parts of the state.