Surat-based textile enterprises are establishing their operations in states like Maharashtra, Madhya Pradesh, and Odisha due to the enticing incentives provided under the respective state policies. 

Rough estimates suggest that significant investments totaling Rs 3,000 crore have been made by key players in the Surat textile industry towards setting up units outside Gujarat.

Insiders within the industry have elucidated that subsidies covering capital expenditure, power costs, access to loans at lower interest rates, and advantages related to renewable energy are among the primary factors motivating Surat industries to embark on projects in other states.

Both leaders within the textile sector and representatives from the Southern Gujarat Chamber of Commerce and Industry (SGCCI) have engaged with the Gujarat government on numerous occasions in recent times, advocating for incentives.

Ashish Gujarati, Former President, SGCCI, says, the absence of incentives by Gujarat is leading to remote areas like Navapur in Maharashtra emerging as textile hubs.

Highlighting the investments by Surat-based industrialists in states like Madhya Pradesh, Odisha, and Maharashtra, Ashok Jirawala, President, Federation of Gujarat Weaver Welfare Association (FGOWWA), says, these investments have been ongoing for the past 3-4 years, but the issue has become more pronounced in the last year. A few states are offering subsidies of up to 50 per cent, he adds.

Delegations from SGCCI have consistently lobbied for a textile policy and incentives to dissuade local players from relocating their operations to other states. Kailash Hakim, President, Federation of Surat Trade and Textile Associations (FOSTTA), states, local manufacturers are establishing units and facilities elsewhere due to the availability of trained labor.