Surat textile units flocking to other states for incentives.

Surat's textile industry is facing an exodus as key players are investing heavily in setting up new units outside Gujarat, particularly in Maharashtra, Madhya Pradesh, and Odisha. These states are offering attractive incentives like capital subsidies, lower power tariffs, and renewable energy benefits, which are absent or less generous in Gujarat.

Industry estimates suggest Surat textile companies have already invested Rs 3,000 crore in neighboring states. Leaders from the industry and chambers of commerce have urged the Gujarat government to introduce similar incentive schemes to retain businesses. While Surat boasts better infrastructure, industry representatives believe even modest incentives could make a difference. Ashish Gujarati, Former President, Southern Gujarat Chamber of Commerce and Industry (SGCCI) say investors would still choose Gujarat for its infrastructure, but the lack of incentives is making remote locations like Navapur in Maharashtra a textile hub.

This trend of outward migration has been ongoing for a few years but has accelerated recently. Ashok Jirawala, president of the Federation of Gujarat Weaver Welfare Association (FGOWWA), highlights that some states are offering subsidies as high as 50 per cent.

The SGCCI has lobbied for a dedicated textile policy with incentives to keep local players from moving away. "There are long-term benefits in other states that Gujarat isn't offering," said Ramesh Vaghasiya, President of SGCCI. The relocation also brings access to a trained workforce readily available in these new locations, according to Kailash Hakim, president of the Federation of Surat Trade and Textile Associations (FOSTTA).

Gujarat's textile industry needs to act fast to stem this outflow by offering competitive incentives and capitalizing on its existing infrastructure advantage.