After GST blow, Gujarat textile units get jitters over incentive scheme

Surat has seen daily production fall from 40 million metre per day to 25 million metre per day

While the Gujarat government may have announced an incentive scheme to attract new investment in the textile value chain, existing units in the state fear that the same could affect their operations. 

Already reeling from sluggish economy, coupled with an accumulated input tax credit under the goods and services tax (GST) regime, existing textile units across the value chain fear incentivising new units would mean stiffer competition for them. 

With the state’s textile policy expiring on September 3, 2018, the Gujarat government recently announced a ‘Scheme for Assistance to Strengthen Specific Sectors in the Textile Value Chain’ effective from September 4, 2018,