ENA Sectors 2024-06-28 17:07:17 <p><span style="font-size:14px"><strong>Surat, Jun 28 (KNN)</strong> Surat, Gujarat's economic powerhouse and renowned Silk City, is grappling with a severe economic crisis that threatens its once-thriving textile industry.</span></p> <p><span style="font-size:14px">The sector, dominated by small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs), is facing unprecedented challenges due to overproduction and plummeting demand for polyester fabric both domestically and internationally.</span></p> <p><span style="font-size:14px">Textile entrepreneurs in Surat are implementing drastic production cuts, ranging from 50 per cent to 80 per cent, as they anxiously await the announcement of Gujarat's new textile policy. The policy, which has been delayed for over six months, is seen as a potential lifeline for the struggling industry.</span></p> <p><span style="font-size:14px">Harsh Sanghvi, Minister of State for Home and Industry, recently assured industry leaders at a Southern Gujarat Chamber of Commerce and Industry (SGCCI) event that the policy is in its final stages and will be announced soon. However, experts warn that further delays could have devastating short-term and long-term consequences for the sector.</span></p> <p><span style="font-size:14px">The current crisis stands in stark contrast to the industry's former glory, which once rivaled Maharashtra's textile sector. One of the primary challenges facing Gujarat's textile industry is the high electricity costs compared to neighbouring Maharashtra, where textile and other entities receive substantial subsidies.</span></p> <p><span style="font-size:14px">This disparity in production costs has led many local businesses and new investors to relocate to Maharashtra, particularly to areas like Dadra-Nagar Haveli, Daman, and Navapur.</span></p> <p><span style="font-size:14px">Ashish Gujarati, former president of SGCCI, emphasised the urgent need for government action: The state government must address the high production costs in Gujarat and provide a level playing field for the textile industry. The first step should be taken to prevent more industry migration to neighbouring states. As seen in Maharashtra, a dedicated textile minister might provide targeted advocacy for the sector's demands. </span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38396 https://knnindia.co.in/news/newsdetails/sectors/surat-cluster-suffers-from-feeble-demand-awaits-textile-policy-for-rescue 2024-06-28 17:07:17 knnindia.co.in