Gujarat’s textile industry is one of the most robust among the country, especially the spinning sector as demand for cotton yarn and fabrics is set to grow immensely. The state has been leading producers of cotton since 2012, but it fell short on its spinning capacity. However, by 2017, new mills were being added and now the sector is not only catering to the domestic markets but has taken wide leaps on on the export front. Even amid the Covid-19 pandemic, the industry has maintained and even pushed its sales as well as production.
India’s cotton yarn exports have risen sharply as manufacturers in the U.S. and Europe are now moving away from China and seeking reliable partners to source raw materials. India’s exports of cotton yarn, fabrics and made-ups increased by 55% 15.29 billion in 2021-22. Besides this, globally, the price of cotton is on the rise and so the spinning industry can make good profits from this.
Furthermore, experts believe that India’s cotton yarn and fabric exports will continue to have a strong demand from duty free markets of Australian and UAE.
Gujarat is definitely preparing to take advantage of this booming situation in the market. According to Spinners Association Gujarat (SAG) textile industry is expected to invest nearly Rs3500 crores in order to expand its spinning capacity in the next year. The investment will increase the number of spindles by 7 lakh. Currently the state has 110 spinning mills with 45 lakh spindles installed.
According to experts, the quality of cotton in Gujarat is better than that from other states. And so the demand for Gujarat’s cotton is also rising in the international market. The new investment will only boost Gujarat’s position in the textile sector.