Gujarat is stitching a strong comeback in India’s textile export map. Over the past five years, the state has emerged as the second-highest textile exporter in the country. While Tamil Nadu retained the top spot in 2023-24, Gujarat wasn’t far behind with exports worth $5,749 million. Experts believe the state’s new textile policy could soon tip the scales.
While Gujarat has consistently maintained a strong presence in the cotton yarn and fabric segments, industry insiders say the state has yet to unlock its full potential in the global textile supply chain. Experts believe the newly launched textile policy could be the game-changer. By encouraging fresh investments, especially in garment manufacturing, it aims to turn the state into a global textile powerhouse. The policy focuses on integrated infrastructure, technical textiles and higher value-added production, which could strengthen Gujarat’s position in coming years.
A major export spike was seen in 2021-22, largely due to soaring cotton prices. But with cotton prices now stabilising at around Rs 53,500 per candy (356kg), manufacturers are looking at more predictable input costs and better long-term planning.
In a reply to the Lok Sabha, Union minister of state for textiles Pabitra Margherita highlighted the Centre’s push to boost the sector’s competitiveness through key initiatives. These include the PM MITRA scheme for world-class textile parks and the production-linked incentive (PLI) scheme aimed at technical textiles and man-made fibre (MMF) segments.
Rahul Shah, co-chairman of the GCCI textile taskforce, said Gujarat’s rise began with the 2012 textile policy. “We have a strong edge in cotton yarn and fabric exports. While demand dipped in Europe due to the Russia-Ukraine conflict, Gujarat still has the capacity to grow,” he said. He added that the global move to reduce reliance on China and Bangladesh could work in Gujarat’s favour, especially as big brands explore new sourcing hubs post-Covid.