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Months before the state goes for Assembly elections, the Gujarat government has announced a new garment and apparel policy that looks to attract investments worth Rs 20,000 crore. The state government has claimed that the policy would create jobs in garmenting among small units.
Making the announcement on Wednesday, Gujarat Chief Minister Vijay Rupani also said the government would be setting up 16 new Gujarat Industrial Development Corporation (GIDC) industrial estates that would generate employment for 100,000.
This is the second consecutive announcement by the state government in the last two days. On Tuesday, Gujarat government had announced a cut in value added tax (VAT) of four per cent on retail petrol and diesel prices.
The policy aims to retain use of cotton grown in the state by boosting the textile value chain of farm, fibre, fabric, fashion and foreign (exports).
“The state has an advantage of being largest cotton producer. So far, we supplied cotton to other states, this is time we encourage our entrepreneurs to invest in garmenting,” said Rupani while making the announcement.
Commenting on the new industrial estates, Rupani said the same will result in the growth of SMEs, especially in remote locations.
The combined area of industrial estates across 16 locations will be around 2400 hectares, with a potential to house roughly 15,000 facilities. “These estates will create an employment of 100,000,” Rupani stated.
Under the garment and apparel policy 2017, the government will be incentivising unit owners by way of subsidy in wages. While female employees will bag subsidy amounting to Rs 4000, their male counterparts will get Rs 3500.
According to Rupani, with already one of the highest spinning capacity of 2.5 million spindles, Gujarat was poised to become numero uno in textiles in the country again by boosting garmenting in the state.
Earlier the state government had also extended the existing textile policy in Gujarat by one year which would have otherwise expired this year in September.
