The Government of Gujarat has unveiled its new textile policy, offering capital subsidies ranging from 10 to 35 percent. This is a significant shift from the previous policy, which provided an interest subsidy of 5% to 6%. Under the new framework, businesses can now avail a 5% to 7% interest subsidy. Additionally, the policy introduces a power subsidy of Re. 1 per unit. A total assistance of ₹1,107 crore has been earmarked for 5,592 industrial units across the state.

The previous textile policy, introduced in 2019, facilitated investments totaling ₹35,000 crore, according to the state government. Gujarat, which contributes 25% to India's overall textile industry, aims to attract an additional ₹30,000 crore in investments with this new policy. The former policy, which spanned five years, ended in 2023. Prior to the 2019 policy, the government had also launched a textile policy in 2012.