Industries seek policy push in Gujarat budget for infrastructure boost

As theGujaratgovernment gears up to present its budget on March 3, manufacturing as well as Services-sector”>services sector representatives have high hopes pinned for major policy boost and development to give the Industry a much-needed push. With Covid-19 cases receding and the third wave leaving a little impact, the industrial recovery continued to remain on track.

Consequently, industries across Gujarat want the states budget to focus on a greater policy boost to accelerate the pace of recovery.

Rajkot is a hub of engineering manufacturing units and as manufacturers are poised for expansion, representatives have sought that more GIDCs must be set up so that new businesses can build base. Paresh Vasani, president, Rajkot Engineering Association, said, More GIDCs must come up so that new players get land at a concessional rate to undertake expansion of existing businesses and even fresh greenfield investments.

With several IT and hardware component manufacturing companies mushrooming in Rajkot, the industry players have also been seeking that the State Government announces the establishment of an IT park. The government has also identified three locations around Rajkot for that park. However, they are waiting for the official announcement.

Slow recovery in demand since the pandemic coupled with a steep rise in raw material costs has plagued the textile manufacturers across Gujarat, impacting their profitability and denting their revenues.

Industries, therefore, have sought policy support to help accelerate recovery and Growth. Chintan Thaker, chairman, Assocham, Gujarat, said, Gujarat Textile Policy-2019 should be replaced with a policy in line with Gujarat Textile Policy-2012. The previous policy led to a capital infusion of more than Rs 30,000 crore.

The new policy has lesser incentives. At a time when the industry needs a push for revival, the government must consider revising the textile policy.

Surats man-made fibre industry on the other hand is also seeking that a dedicated textile park is set up under Mega Integrated Textile Re- gion and Apparel (MITRA) Parks.

Surat is one of the main contenders to get a MITRA park for which multiple proposals were made by the Southern Gujarat Chamber of Commerce and Industry (SGCCI).