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Business & Entrepreneurship

Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)

The "Gujarat Textile Policy" introduced by the Industries and Mines Department aims to create a vibrant Textile Sector ecosystem and generate enormous employment opportunities in the State.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Financial Assistance: | Category of TalukaActivity 1Activity 2Category 1 & PM MITRA Park35% of eFCI, Maximum ₹150,00,00,000/-25% of eFCI, Maximum ₹150,00,00,000/-Category 230% of eFCI, Maximum ₹150,00,00,000/-25% of eFCI, Maximum ₹150,00,00,000/-Category 325% of eFCI, Maximum ₹150,00,00,000/-25% of eFCI, Maximum ₹150,00,00,000/- | Note: | - Eligible Fixed Capital Investment: Eligible Fixed Capital Investment (eFCI) means the following components of investment made during the Eligible Investment Period.- If Industrial Unit is availing Capital Subsidy under any scheme of Central Government, then total quantum of Capital Subsidy from State and Central Government, in any case shall not exceed the total term loan amount disbursed.

Who can apply

Garments, Apparel & Made-ups, Technical Textiles Activity (including Composite Unit); Weaving (with or without preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (excluding Spinning activity of Cotton and Synthetic Filament Yarn).

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the "Gujarat Textile Policy"?

The "Gujarat Textile Policy" is a government initiative aimed at strengthening the textile sector by promoting investment, sustainability, employment generation, and value chain integration.

What is the operative period of the "Gujarat Textile Policy"?

The operative period of the Gujarat Textile Policy 2024 is from October 1, 2024, to September 30, 2029, covering a span of five years.

How does the policy contribute to employment generation?

The policy focuses on creating a robust textile ecosystem by attracting investments, encouraging MSMEs, supporting women entrepreneurs, and expanding production capacities, thereby generating employment opportunities.

What incentives are provided under the policy?

The policy offers financial assistance, infrastructure support, and subsidies to strengthen textile manufacturing, encourage investment, and support MSMEs, startups, and large enterprises.

What is the objective of the "Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)" component?

The component is a financial assistance program that provides subsidies to Labour Intensive Units based on their fixed capital investment.

Who is eligible to apply for this subsidy?

Labour Intensive Units that have availed a term loan and meet the eligibility criteria specified in the scheme are eligible to apply for the subsidy.

What is the maximum subsidy amount that an industrial unit can receive?

The maximum subsidy amount varies based on the category of the Taluka and activity type, with a maximum limit of [?]150,00,00,000/-.

When will the subsidy be disbursed to the industrial unit?

The subsidy will be disbursed in 5 equal annual installments after the commencement of commercial production.

Can an industrial unit apply for the subsidy if the term loan is sanctioned after one year from the Date of Commercial Production (DoCP)?

No, an industrial unit will not be eligible for the Capital Subsidy if the term loan is sanctioned more than one year after the DoCP.

Can an industrial unit avail the Capital Subsidy if it is already receiving a subsidy from the Central Government?

Yes, an industrial unit can avail the subsidy; however, the total subsidy from both the State and Central Governments should not exceed the total term loan amount disbursed.

Is it mandatory for a Labour Intensive Unit to register under the EPF scheme?

Yes, it is mandatory for all employees of the Labour Intensive Unit to be registered under the EPF scheme to qualify for the benefits of this component.