The Government of Gujarat provides attractive incentives for textile & garments manufacturers under the Gujarat Textile Policy 2024. These subsidies help reduce project cost and improve profitability for textile businesses across the state.
Under this policy, textile units can avail multiple financial incentives, including capital support, interest subsidy, power subsidy, and payroll assistance.
Capital subsidy is provided on Eligible Fixed Capital Investment (eFCI).
10% – 35% of eFCI
| Taluka Category | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM Mitra Park | 35% (Max ₹100 Cr) | 20% (Max ₹50 Cr) |
| Category 2 | 30% (Max ₹100 Cr) | 18% (Max ₹50 Cr) |
| Category 3 | 20% (Max ₹50 Cr) | 10% (Max ₹40 Cr) |
Interest subsidy is available on term loans taken for textile/garment projects.
| Taluka Category | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM Mitra Park | 7% for 8 years (Max 3% of eFCI p.a.) | 7% for 7 years (Max 2% of eFCI p.a.) |
| Category 2 | 7% for 8 years (Max 2.5% of eFCI p.a.) | 7% for 7 years (Max 2% of eFCI p.a.) |
| Category 3 | 5% for 6 years (Max 2% of eFCI p.a.) | 5% for 5 years (Max 2% of eFCI p.a.) |
Textile units can avail of an electricity subsidy to reduce operational costs.
₹1 per unit
5 years from commercial production
DISCOM & Renewable power via open access
New & existing units planning for expansion are eligible for 100% electricity duty exemption for 5 years.
100% exemption — This helps reduce the overall power cost during the initial years of operation, as per the Gujarat government’s norms.
The government provides salary support to promote employment in textile & garment units.
| Activity | Payroll Assistance |
|---|---|
| Garment, Apparel & Made-ups (Including Composite Unit) | ₹5,000/Female & ₹4,000/Male per month for 5 years |
| Technical Textile (Including Composite Unit) | ₹3,000/Female & ₹2,000/Male per month for 5 years |
Support is provided to Self Help Groups (SHG) engaged in textile job work activities such as stitching, embroidery, and related operations.
This initiative helps strengthen rural employment and textile cluster development across Gujarat.
Additional incentives may be available for textile units depending on the project structure.
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