GUJARAT STATE: PARADIGM FOR TEXTILE INDUSTRY IN INDIA

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1 GUJARAT STATE: PARADIGM FOR TEXTILE INDUSTRY IN INDIA DR. BABARAJU K. BHATT Principal Shri Manilal Kadakia College of Management & Computer Studies Ankleshwar, Gujarat State, INDIA Ph. D Supervisor Pacific Academy of Higher Education and Research University Udaipur, Rajasthan State, INDIA brkbhat@live.com MR. RONAK A. MEHTA Research Scholar Pacific Academy of Higher Education and Research University Udaipur, Rajasthan State, INDIA ronak.mehta1102@gmail.com Abstract: Popularly known as the textile state of India, Gujarat is one of the most successful textile industries in the country. Also said to be the Manchester of the India. Textile Industry in Gujarat contributes almost 4 Per cent towards the GDP of India. India has grabbed a major part of global textile market share. Textile Industry in Gujarat is performing major part of India's art and crafts manufacturing. Since long Gujarat has become role model for the country in Textile Industry. Gujarat now with vibrant summit brake all bar to reach at international level. Present paper shows significance of Gujarat state in development of textile industry with future prospect to reach out global market. Key Words: Textiles Industry, MSME in Textiles, Art and Crafts, Vibrant Summit Volume 1, Issue 4, March Management 73

2 INTRODUCTION: Textile Industry is one of the oldest industries in the state. Due to Textile Industry with the perfect combination of skill labourer, large selection of raw materials, seamless unify of yarns and the use of traditional techniques the state produces the wide range of textile products. One of the important factors behind the success of the Textile Industry in Gujarat is that the state has successfully sustained its old tradition, culture and values. The Textile Industry in Gujarat involves considerably large population. More than 90 per cent of the polyester consumed in India is produced in Surat. The two major Textile Industry manufacturing cities in Gujarat are Ahmedabad and Surat. Both these cities together cover for almost 50 per cent of the total textiles produced in Gujarat. The textile industry in the city of Ahmedabad in the state of Gujarat (India) has been in existence since 19th century, when the city and the industry both were established under the British Raj. In Gujarat Textile sectors gave employment to thousands of people from across the state, and the cotton garments feigned were exported across the world. The wealth of the industry was the foundation of the city's economy. Textile Industry in Gujarat is wellknown as the Manchester of India. GUJARAT AS THE LEADER IN TEXTILE: Gujarat as the leader in textile comprises of 1,560 medium and large textile units. Gujarat is the largest producer (33 Per cent) and exporter (60 Per cent) of cotton in the country. Around 50 Per cent of the country's art silk fabric is produced in Surat alone. Gujarat is the largest producer of denim in India (65 Per cent) and the third largest in the world. About Per cent of fixed investments, production of Small Scale Industries are from textiles sector. Gujarat has the highest number of medium and large textile processing houses Volume 1, Issue 4, March Management 74

3 (over 600) and is home to more than 50 Per cent of India's processing machinery manufacturers and 90 Per cent of weaving machinery manufacturers. Gujarat contributes to over one-fourth of the country's technical textile output. It is also the largest manufacturer of manmade and filament fabric and the second largest manufacturer of cotton. INFRASTRUCTURE FOR TEXTILE INDUSTRY IN GUJARAT: Gujarat has leveraged the advantage of capital intensity in textile industry triggering capital and human productivity and High raw material availability. Gujarat contributes to 62 Per cent of the overall petrochemical output of India and thus has facility to produce almost all varieties of man-made fibres. Gujarat is the 2nd largest decentralized power loom concentrating state and doubled its capacity during last 8 Years (50,000 looms (cotton) / 8 lakh filament). Gujarat is the largest producer of cotton in the country with the production of 93 lac bales in utilizing lac hectares of land. PRESENT CAPACITY OF GUJARAT STATE IN MANUFACTURING TEXTILES: Ginning 1200 units Spinning 1.2 million working Spindle Weaving 50,000 looms Processing (medium & large) 600 Units (Yarn, Fabric & Garments) Knitting & Apparel (small & medium) 2,00,000 machines Hand Printing 1500 units in Jetpur alone TEXTILE SECTORS PRESENT INFRASTRUCTURE AND TEXTILE CLUSTERS (SMEs): Three dedicated textile SEZ are planned to be developed in Ahmedabad; while one such SEZ, Surat Apparel Park is functional. In addition to that Ahmedabad is already producing Cotton and blended fabric, denim, made-ups, ladies garments, textile machinery and its parts, whereas Saurashtra and Jetpur is well known for Hand printing and processing Volume 1, Issue 4, March Management 75

4 units and Manavadar for Cotton ginning. Kutch has developed new highway by performing in Textile Handicrafts. Besides Surat traditionally produces silk fabric, Synthetic textiles, Jari manufacturing, embroidery, textile machinery and its parts. Umargaon also emerge in textile industry with Modern power looms, Synthetic suiting and shirting. EDUCATIONAL STRUCTURE TO DEVELOP TEXTILES: ITI s in Gujarat provide industrial training courses on Textile and Garment industry with an approximate intake of 5,876. Major academic institutions that are offering training programmes include i.e., Ahmedabad Textile Industrial Research Association (ATIRA), Man-made Textile Research Association (MANTRA), Surat, National Institute of Fashion Technology (NIFT), Gandhinagar. Apparel and Leather Technics (ALT) Training College, Ahmedabad, National Institute of Design (NID), Ahmedabad., Surat Education and Research Society etc. Moreover Gujarat has three engineering colleges in Ahmedabad, Vadodara and Surat, offering courses in Textile Technology, Textile Processing and Textile Engineering and NTC (National Textile Corporation) is planning to set up two CoE (Center of Excellences) in Guajrat for the assistance to apparel training institutions and trainees as well as training support to power loom sector location of major educational Institutes. ITIs in Gujarat offers textile development courses like Cutting and Sewing, Cutting and Embroidery and Needle Work, Computer-aided Dress Making and Dress Design, Tailoring, Pattern Making, Finishing Garment Checking etc. Gujarat Chamber of Commerce and R & D Centre (Product Development) would have a pilot project for new product development. It would include machines for complete value chain. Production centre would serve two purposes: To produce the 1st batch of the product developed in the R & D centre. It shall generate revenue for the centre. Testing and certification helps test the products developed and provide certification. It would also provide testing for raw materials. Design studio develops of new designs. Branding and Marketing helps industry participation in National and International Exhibitions and organizing conferences, seminars, workshops etc to educate the industry and skill development for Training manpower with the latest technology. Volume 1, Issue 4, March Management 76

5 GUJARAT S VISION FOR TEXTILE: Government of Gujarat s development agenda is to attract at least 2,000 new units with an investment worth Rs. 10,000 crore by introducing Technical Textile Mission. With the vision of Development in the entire value chain of the Textile Industry and Value addition through focus on Technical Textiles which leads Textile market in Gujarat by 2017~USD 25 billion. Growth is envisaged to be driven by Technical Textiles which has use in more than 200 different products across sectors. Technical Textiles of Gujarat will strive to capture 50 per cent of the Indian market CAPACITY ADDITION IN NEXT 5 YEARS: Ginning Additional 200 modernized units Spinning Tripling Capacity with additional 25 lakhs Spindle with modern technology Weaving Additional 1,00,000 Shuttle less and Automatic shuttle looms Processing Additional 60 Units (Yarn, Fabric & Garments) Knitting & Apparel -Additional 2,00,000 stitching & supporting machines KEY INTERVENTIONS OF GUJARAT GOVERNMENT: Government Technology Mission on Technical Textiles (TMTT) focuses on standardization, creating common testing facilities with national / international accreditation and to provide support for the development of domestic and export markets for technical textiles and Expert group will develop strategy for the development of Technical Textiles sector. Furthermore two new Composite Centres for the development of Technical Textiles are to be set up in Ahmedabad (existing centre in Ahmedabad to strengthen) and Surat district. (Existing Government of India Scheme for the Development of such Composite Centres will be improved). Volume 1, Issue 4, March Management 77

6 Expected Investment in next 5 years 4% 13% 6% 5% 29% 43% Spinning Weaving Processing Knitting Technical Textiles Textiles and spinning park (Source : Sector Profile Report , Government of Gujarat) An International level CoE (Centre of Excellence) to be set up in the state focusing on technical textiles by NTC (National Textile Corporation) in collaboration with international firms from Japan, USA and Germany. Two new Technical Textile zones are also to be developed in Ahmedabad and Surat district. Additional 6 per cent interest subsidy in addition to 5 per cent interest subsidy and 10 per cent capital subsidy by Government of India. KEY GOVERNMENT INITIATIVES: The new policy is expected to attract an investment of over INR 20,000 crore creating new employment opportunities for over 2.5 million people, 50 per cent of them being rural women, during the next five years. Support for establishing Textile & Apparel Park: 1) 50 per cent (max. INR 30 Crore) for Spinning Park: 2) 50 per cent (max. INR 10 Crore) for another Textile Park. Gujarat Government is likely to provide Interest subsidy of 5 per cent without any ceiling for the period of five years on new plant and machinery for ginning and processing and 7 per cent on new plant and machinery for cotton spinning as well as for second-hand imported cotton spinning machinery with certain conditions without a ceiling for five years. Volume 1, Issue 4, March Management 78

7 Moreover Power tariff concession on new investment for cotton spinning will be provided at Rs. 1 per unit for five years and there will be refund of VAT paid by the unit on the purchase of raw material will also be offered. Government also offered financial assistance to Skill Development Centres for textile industry, technology acquisition for value chain and assistance for energy conservation, water conservation and environment compliance. REFERENCES: 1. Annual report of Manufacturing and Services of Gujarat State. Ministry of Gujarat. 2. Annual report of MSMEs in Gujarat State. Ministry of Gujarat. 3. Vibrant Gujarat (2015): Manufacture Sector Profile. 4. Vibrant Gujarat (2015): MSME Sector Profile. URLs: Gujarat.html#sthash.WulA8fXi.dpuf Volume 1, Issue 4, March Management 79