Welspun shifts textile investment from Gujarat to Odisha.

Gujarat's textile industry just got a wake-up call. Textile giant Welspun, a major player in the state, announced Rs 3,050 crore investment in a new facility in Odisha, marking a significant shift away from its home base. This move echoes the growing discontent within the industry, fuelled by the state government's delay in formulating a new, industry-friendly textile policy.

The frustration stems from the expiry of the previous policy in December 2023, leaving a void of uncertainty and hindering investment. Industry stakeholders, including the Southern Gujarat Chamber of Commerce and Industry (SGCCI), have been urging the government to expedite the formulation of a new policy, particularly regarding crucial incentives for the cotton spinning sector.

Odisha has a policy specifically designed to attract textile investments. Besides attractive schemes, Odisha boasts a significant advantage -- a skilled workforce. An estimated 60 per cent of Surat's textile workforce, around nine lakh hail from Odisha. This makes it a natural fit for Welspun and potentially other textile giants looking to expand.

Welspun's move could be the first domino to fall. Industry insiders warn of a potential exodus of textile companies from Gujarat if the state doesn't address their concerns. Industry representatives are demanding a broader policy encompassing various segments like weaving, knitting, dyeing, and embroidery. Additionally, they urge the government to align subsidies with neighbouring states and provide a clear roadmap for future policy transitions.

This news highlights the crucial role of government policies in attracting and retaining businesses. Gujarat's delay in formulating a new, industry-friendly policy could cost them dearly, not just in terms of lost investment but also in terms of skilled workforce migration. Odisha, on the other hand, is capitalizing on this opportunity, positioning itself as a rising star in the textile industry.

Welspun's move raises questions about the future of the Indian textile industry. Will other states follow Odisha's lead and create more attractive policies, potentially triggering a nationwide shift in the industry landscape? Only time will tell, but one thing is clear: Gujarat needs to act fast to prevent further exodus and maintain its position as a textile powerhouse.