After slashing VAT on petroleum products, the Gujarat government on Wednesday announced more populist measures to attract investments in the Small and Medium Enterprises (SME) sector by unveiling a new textiles and apparel policy which offers generous subsidies and incentives.
Moreover, ahead of the Assembly polls slated to be held later this year, Chief Minister Vijay Rupani announced setting up of as many as 16 industrial estates and parks by the Gujarat Industrial Development Corporation (GIDC) in various locations.
Wage subsidy
Under the new textiles and apparel policy, the government will provide incentive for garment unit owners for generating employment by providing subsidy in wages. The women workers will get ₹ 4,000 subsidy, while male workers will get ₹ 3,500 as subsidy while other incentives include subsidy in interest, exemption of stamp duty and partial relief in electricity duty.
Gujarat is one of the largest cotton producing States in the country and has a robust base in textile manufacturing. The State has 25 lakh spindles installed. “We want to make Gujarat, once again a Manchester of the East and become number 1 in textiles,” the Chief Minister told media persons.
No industrial base
On new industrial estates and parks, Mr. Rupani said that the new locations selected for setting up new estates were from the areas which had no industrial base. He added that by setting up new estates, the government aimed to create one lakh job opportunities for youth.
“These GIDCs will unlock the growth in remote areas and SMEs. These GIDCs, spread across 2400 hectares in 16 villages, will have the potential to accommodate about 15,000 factories. The total estimated employment generation is approximately one lakh,” he added.
