Major Cotton growing states have introduced their own textile policies apart from the Centre's textile package, the technology upgradation fund scheme and other incentives, to attract investment. Maharashtra government to attract textile entrepreneurs in the entire value chain and also to avert the existing unit from migrating to other major cotton growing states is planning to introduce a new textile policy in next two months.

The governments of Tamil Nadu, Karnataka, Andhra Pradesh and Telangana have announced a number of incentives for textile units. And, effective October 1, 2017, the government of Gujarat renewed its state textile policy, which was originally introduced for five years in 2012. The earlier policy of Gujarat had seen a large migration of units into the state from across the country.

Maharashtra has seen the migration of all types of business units in the sector, given the similar business environment in the two states.

A senior Maharashtra government official said that they have started taking inputs from co-operative and other sectors involved in the garment value chain. They will introduce their own textile policy in two months to stop migration of units to other states.

These states have attracted investment in the entire textile chain with incentive schemes, electricity and labour being the major ones.

The government of Gujarat is offering electricity at Re 1 a unit, besides interest subsidy at five percent annually, with a ceiling of Rs 70.5 million (Rs 7.5 crore). Through this, it estimates it would attract new investment of Rs 200 billion (Rs 20,000 crore) by 2022.

Maharashtra’s new textile policy would majorly focus on power availability at cheap rates. Solapur is already being developed as a manufacturing hub.

Amitkumar Jain, the joint secretary of the Solapur Readymade Kapad Utpadak Sangh, said that they have requested the government to provide them with a monthly skill development fund of Rs 4,000 per man and Rs 3,000 per woman as offered by the government of Gujarat.

Solapur through their annual exhibition are bringing global buyers and seller. This years’ annual exhibition is scheduled between January 27 and 29. Solapur is set to become a major sourcing hub of school and corporate uniforms in India.