Surat: The textile industry of South Gujarat is the engine of Gujarat’s industrial growth, with a contribution of more than 25 percent to the state’s GDP, the Gujarat government said today. The upcoming ‘Vibrant Gujarat Regional Conference (VGRC)’, scheduled to be held on 1st and 2nd May 2026 at Auro University, Surat, will serve as a significant platform to further accelerate the industrial development of South Gujarat, an official statement said.

This initiative aims to 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 center 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 fiber (MMF), or art silk. Today, Surat produces about 90 percent 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. As per the government, “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 percent to the state’s GDP, making it a key driver of Gujarat’s industrial growth. Surat alone produces about 30 percent of the world’s fabric and accounts for 65 percent of India’s man-made fiber 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,” the press release added.

From spinning to knitting, Gujarat and Surat together produce 90 percent 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 at global sporting events such as the Olympics and the IPL.

As per the official press release, 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 on 1st and 2nd May 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.

Incentive of Subsidy to Surat’s Industries under the Textile Policy

Under the Gujarat Textile Policy 2019, industries in Surat district have gained momentum, with subsidies amounting to ₹2,325.87 crore disbursed so far. The policy provides interest assistance of up to 6 percent for new and expanding units, a concession of ₹2 to ₹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 has made Surat’s textile industry more modern, eco-friendly, and globally competitive.

Government’s Master Plan to Make Gujarat’s Textile Industry 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 percent 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. DeshGujarat