State Policy
2024
Gujarat Textile Policy 2024
Gujarat accounts for roughly 28% of India's cotton production and 50% of its man-made fibre, and this policy is the state's attempt to hold that position by funding the whole value chain rather than one link in it. Assistance is split into two activity classes, and the class a unit falls into changes the size of nearly every incentive that follows.
Document record
Open- Issued by
- Industries Commissionerate, Industries and Mines Department, Government of Gujarat
- Source file
- PDF · 5 pages · 12.1 MB
At a glance
- 35%
- Peak capital subsidy
- ₹100 Cr
- Capital subsidy ceiling
- ₹1/unit
- Power tariff subsidy
- ₹5,000
- Payroll, per female worker
Of eFCI, Activity 1
₹150 Cr, labour-intensive
For 5 years from DoCP
Per month, garments
Eligibility
Who it is for
As the document defines it — the categories of unit the scheme is open to.
- Garment, apparel and made-ups manufacturers, including composite units.
- Technical textile manufacturers, including composite units.
- Weaving, knitting, dyeing and processing, texturizing and twisting units.
- MMF spinning units producing yarn from polyester or viscose staple fibre, and embroidery units.
The summary
7 chapters
The two activity classes
Everything downstream of this split — capital subsidy, interest subsidy, payroll assistance — is set by which class a unit falls into.
| Class | Covered activities |
|---|---|
| Activity 1 | Garments, apparel and made-ups; technical textiles activity, including composite units |
| Activity 2 | Weaving (with or without preparatory), knitting, dyeing and processing, texturizing, twisting, MMF spinning to manufacture yarn from polyester staple fibre or viscose staple fibre — excluding spinning of cotton and synthetic filament yarn — and embroidery |
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Capital subsidy
Taluka categories follow GR MIS-102020-347965-I dated 2 November 2020.
| Taluka category | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM MITRA Park | 35% of eFCI, maximum ₹100 crore | 20% of eFCI, maximum ₹50 crore |
| Category 2 | 30% of eFCI, maximum ₹100 crore | 18% of eFCI, maximum ₹50 crore |
| Category 3 | 20% of eFCI, maximum ₹50 crore | 10% of eFCI, maximum ₹40 crore |
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Interest subsidy
| Taluka category | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM MITRA Park | @7% on term loan for 8 years; maximum 3% of eFCI per annum | @7% on term loan for 7 years; maximum 2% of eFCI per annum |
| Category 2 | @7% on term loan for 8 years; maximum 2.5% of eFCI per annum | @7% on term loan for 7 years; maximum 2% of eFCI per annum |
| Category 3 | @5% on term loan for 6 years; maximum 2% of eFCI per annum | @5% on term loan for 5 years; maximum 2% of eFCI per annum |
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Power tariff and payroll assistance
- Power tariff subsidy of ₹1 per unit (kWh) for both activity classes, on power drawn either from a DISCOM or from renewable sources through open access, for 5 years from the date of commencement of production.
- Payroll assistance for garment, apparel and made-ups including composite units: ₹5,000 per female worker and ₹4,000 per male worker per month, for 5 years.
- Payroll assistance for technical textiles including composite units: ₹3,000 per female worker and ₹2,000 per male worker per month, for 5 years.
Assistance to self-help groups for job work
| Type of assistance | Quantum |
|---|---|
| Training assistance | ₹5,000 per month per member, for 3 months |
| Payroll assistance | 25% of job work value turnover, limited to ₹5,000 per month per member, for 5 years |
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Special package for labour-intensive units
A labour-intensive unit is one providing employment to a minimum of 4,000 employees, of which a minimum of 1,000 are female. The package raises the ceilings and doubles the payroll period.
| Taluka category | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM MITRA Park | 35% of eFCI, maximum ₹150 crore | 25% of eFCI, maximum ₹150 crore |
| Category 2 | 30% of eFCI, maximum ₹150 crore | 25% of eFCI, maximum ₹150 crore |
| Category 3 | 25% of eFCI, maximum ₹150 crore | 25% of eFCI, maximum ₹150 crore |
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- Interest subsidy @7% on term loan for 8 years, maximum 3% of eFCI per annum, across all taluka categories and both activity classes.
- Power tariff subsidy of ₹1 per unit, extended to power drawn from a group captive renewable energy plant, capped at ₹15 crore per year for 5 years from the date of commencement of production.
- Payroll assistance at the standard rates, but for 10 years instead of 5.
Other schemes for comprehensive support
- Assistance for quality certification.
- Assistance for saving in consumption of energy and water.
- Assistance for technology acquisition.
Read it in the original.
This summary is a guide to the document, not a substitute for it. The notified text is the operative version.
These summaries are prepared from the published policy documents for general guidance only. Scheme rates, ceilings, taluka categories and operative periods are notified by the Government of Gujarat and are revised from time to time. Confirm the incentive currently applicable to your project with us before you file.
Summaries last reviewed against the notified documents: 6 August 2026.
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