Textile Policy Extension - Boost to Demand of Textile Machinery
Bookmyparts's Point of View on Textile Policy Extension
The Gujarat government's decision to extend its textile policy for a year is expected to attract Rs 5,000 crore of additional investment across entire value of textile industry including support to supply chain, rising demand in domestic market as well as export of spare parts textile machinery & textile machinery components.
Textile Policy Implemented in 2013 has attracted around Rs 20,000 crore of investment in four years and created 2.5 million jobs announced by Govt of Gujarat. The government estimates addition till now of around 1 million units of spindle capacity around the spinning sector and setting up of more than 1,000 units in technical textiles.
According to an expert, there has been shifting of units from Tamil Nadu, Telangana and Maharashtra. The extension would see a beneficiary boost in further fresh investment in textiles machinery parts in Gujarat.
The extension is expected to add 300 ginning units, to 1,400, and double the spinning capacity to four million a year. Apart from setting up of units in other segments such as Textile Machinery, silk, jute and wool, Gujarat has been the largest producer and exporter of cotton in the country, at 33 per cent and 60 per cent, respectively. All these announcements are going to provide huge benefits to textile machinery spare parts manufacturersÂ and suppliers.
Under the policy, the state government offers interest subsidy of five percentage points on new plant and machinery (P&M) for value addition, apart from six per cent and seven per cent for technical textiles and on new P&M for cotton spinning, respectively. Also, refund of value added tax (VAT) on expansion of existing units from cotton to garments and made-ups, in addition to power rate concession on new investment for cotton spinning at a rupee per unit.
This recent announcement will help machinery spare parts industry. Gujarat is a hub for the manufacturing as well as trade of textile spare parts. Â The state is a preferred destination for sourcing of textile parts as there are leading textile machinery parts manufacturer in Ahmadabad city.
Gujarat state contributes around 40-50 % of manufacturing capacities of textile machinery parts and components. There is huge presence of textile spare parts suppliers in cities like Ahmedabad, Surat and Rajkot.
The state has witnessed continuous increase in spinning capacities over the last decade; it has fueled the demand of textile spares within state and across India as well. There are many textile spare parts manufacturers who export in countries like Bangladesh, Pakistan, Indonesia and Africa.
Many units engaged into manufacturing of textile industry spare parts are in SME and MSME segment. They are willing to adopt new technology and automation in manufacturing of industrial machinery spare parts. Manufacturers based in Gujarat have also adopted modern marketing techniques including online tools, digital marketing and use of social media to promote their products.
Bookmyparts.com appreciates the initiatives taken by Govt. of Gujarat. The positive step taken by Govt of Gujarat has boost the morale of textile machinery spare parts suppliers, manufacturers, buyers representing Textiles industry in Gujarat and overall in India.