Finance minister Arun Jaitley in the Budget had announced setting up of eight textile mega clusters that including one each in Surat and Kutch with an initial investment of Rs 200 crore. The upcoming mega textile cluster in Kutch to focus completely on handloom and handicrafts while Surat textile mega cluster will focus on powerlooms, said textile commission Kiran Soni Gupta during her one-day visit to the city.

Zohra Chatterjee, secretary, ministry of textiles, government of India who was also in the city went to Kutch to discuss the setting up of textile mega cluster with various stakeholders. As the Ministry of textile will be providing assistance in setting up the facilities for the clusters.

Industry insiders believe that the mega clusters in Surat and Kutch which will come up soon, this will not only spur domestic manufacturing but also generate employment.

Gupta during an interaction session with various textile industries owners and officials at ATIRA complex said that when it comes to research and development, textile industry is not doing enough and hence the industry is lacking in global competitiveness. The representatives of textile industries raised the issue of cheap Chinese fabrics being imported into the country among other issues including customs and excise duty.

Gupta informed that in the Technology Upgradation Fund Scheme (TUFS) under 15% MMS (margin money subsidy) and similarly under 20% MMS, Gujarat is leading in applications sanctioned to all over India.

The textile industry contributes about 14% to the industrial production, 4% to the GDP and 11% to the country's export earnings. The textile sector is the second largest provider of employment after agriculture.