Surat Textile Sector Poised for Global Growth with VGRC Boost

This ambitious initiative will attract large-scale investments in key sectors, including textiles, enhance direct linkages between global buyers and local manufacturers, and promote the exchange of new technologies and innovations, thereby providing strong momentum to the industrial growth of Surat and the South Gujarat region.

Located on the banks of the Tapi River, Surat has been an important trade centre since the Mughal era due to its strategic location. Once a prosperous port in the 16th century, it has now evolved into the world's 'Silk City' in the 21st century. This identity is rooted in its rich history, as silk fabrics from Surat were exported to Arab and European countries centuries ago. Over time, the city expanded its expertise from natural silk to man-made fibre (MMF), or art silk.

According to the Gujarat CMO, Surat produces about 90 per cent of India's artificial silk, earning it global recognition. What began as small-scale zari and cotton work in narrow lanes has now grown into a globally connected textile industry, supported by modern technology and skilled entrepreneurs.

The foundation of Surat's textile industry was laid in the 19th century, with the establishment of mills and ginning factories between 1866 and 1881. Following the first textile accessories unit in 1925, the city has now evolved into a vast network comprising 240 large markets and more than 70,000 traders. Initially a small-scale industry, it has now grown into a sector with an annual turnover of ₹1.5 lakh crore and has emerged as a preferred investment destination for entrepreneurs across the country. Currently, this sector provides direct and indirect employment to an estimated 18 to 20 lakh people.

The textile industry of Surat and South Gujarat contributes over 25 per cent to the state's GDP, making it a key driver of Gujarat's industrial growth. Surat alone produces about 30 per cent of the world's fabric and accounts for 65 percent of India's man-made fibre segment. The city produces nearly 6 crore meters of fabric every day.

With more than 600 processing houses and lakhs of power looms, Surat has become a major hub for products ranging from sarees to the national flag and high-end fashion garments. Its strength lies in a strong supply chain and modern production systems, with lakhs of parcels shipped daily across the world by road, rail, and air through over 500 transporters.

From spinning to knitting, Gujarat and Surat together produce 90 per cent of MMF fabrics. Surat's knitted fabric is gaining prominence on the global stage. Developed nations such as the United States, Israel, and New Zealand are admirers of Surat's knitted fabrics, including technical textiles. Additionally, sports jerseys manufactured in Surat are in high demand in global sporting events such as the Olympics and the IPL.

Projects such as the bullet train, coastal road, and the PM MITRA Park in Navsari, along with support for technology upgradation, are set to be game changers for the textile industry.

The upcoming VGRC in Surat will attract significant foreign direct investment (FDI), strengthen direct networking with international buyers, and enable local manufacturers to become more competitive globally through the exchange of advanced technologies. This will further reinforce Surat's position as one of the world's leading textile hubs.

Under the Gujarat Textile Policy 2019, industries in Surat district have received unprecedented momentum, with subsidies amounting to Rs 2,325.87 crore disbursed so far. The policy provides interest assistance of up to 6 per cent for new and expanding units, a concession of Rs 2 to Rs 3 per unit in electricity bills for weaving and knitting units and capital investment support for technical textiles.

Additionally, significant financial assistance for textile park infrastructure and the establishment of CETP plants for environmental protection have made Surat's textile industry more modern, eco-friendly, and globally competitive.

To make the state's textile industry globally competitive, the new Textile Policy 2024 has been implemented. Under this policy, capital subsidies ranging from 10 to 35 per cent are provided to new units, while employment opportunities are being generated in remote rural areas through value addition across the supply chain.

Free Trade Agreements (FTA) with Europe and tariff reductions in the United States have opened new global markets for garment exports from Surat.

- ANI