Gujarat: VGRC To Create New Opportunities for Surat’s Textile Sector
April 28, 2026 | By Textile Sphere India
The initiative aims to attract large-scale investments in key sectors such as textiles, strengthen direct linkages between global buyers and local manufacturers, and encourage the exchange of new technologies and innovations.
The upcoming Vibrant Gujarat Regional Conference (VGRC), scheduled for May 1 and 2 at Auro University in Surat, is expected to provide a major platform to further accelerate industrial development in South Gujarat, according to an official release.
The initiative aims to attract large-scale investments in key sectors such as textiles, strengthen direct linkages between global buyers and local manufacturers, and encourage the exchange of new technologies and innovations. This is expected to give fresh momentum to industrial growth in Surat and the wider South Gujarat region.
Situated on the banks of the Tapi River, Surat has been a prominent trade centre since the Mughal era due to its strategic location. Once a thriving port in the 16th century, the city has evolved into the world’s “Silk City” in the 21st century. Historically, Surat’s silk fabrics were exported to Arab and European countries, and over time, the industry expanded from natural silk to man-made fibre (MMF), also known as art silk.
The Gujarat CMO noted that Surat produces nearly 90 percent of India’s artificial silk, earning global recognition. What began as small-scale zari and cotton work has grown into a globally connected textile industry backed by modern technology and skilled entrepreneurs.
Surat’s textile foundation was laid in the 19th century with the establishment of mills and ginning factories between 1866 and 1881. After the first textile accessories unit was set up in 1925, the industry expanded into a vast network of 240 large markets and more than 70,000 traders. The sector now has an annual turnover of around Rs 1.5 lakh crore and provides direct and indirect employment to an estimated 18 to 20 lakh people.
The textile industry of Surat and South Gujarat contributes over 25 percent to Gujarat’s GDP. Surat alone produces about 30 percent of the world’s fabric and accounts for 65 percent of India’s man-made fibre segment, producing nearly 6 crore metres of fabric daily.
With more than 600 processing houses and lakhs of power looms, Surat has emerged as a major hub for products ranging from sarees and the national flag to high-end fashion garments. A strong supply chain and modern production systems enable lakhs of parcels to be shipped worldwide each day through more than 500 transporters.
From spinning to knitting, Gujarat and Surat together account for about 90 percent of MMF fabric production. Surat’s knitted fabrics, including technical textiles, are gaining global recognition, with demand from countries such as the US, Israel and New Zealand. Sports jerseys manufactured in Surat are also widely used in major events such as the Olympics and the IPL.
Major infrastructure projects such as the bullet train, coastal road and the PM MITRA Park in Navsari, along with technology upgradation support, are expected to be game changers for the industry.
The VGRC is expected to draw substantial foreign direct investment, strengthen engagement with international buyers and help local manufacturers improve global competitiveness through access to advanced technologies, further consolidating Surat’s position as a leading textile hub.
Under the Gujarat Textile Policy 2019, industries in Surat district have received significant support, with subsidies of Rs 2,325.87 crore disbursed so far. The policy offers interest assistance of up to 6 percent for new and expanding units, electricity concessions of Rs 2 to Rs 3 per unit for weaving and knitting units, and capital investment support for technical textiles.
Support for textile park infrastructure and CETP plants for environmental protection has also helped modernise the industry and improve sustainability.
To strengthen global competitiveness, the state has introduced the Textile Policy 2024, which provides capital subsidies ranging from 10 to 35 percent for new units and aims to generate employment in rural areas through value addition across the supply chain.
In addition, Free Trade Agreements with Europe and tariff reductions in the US are opening new global markets for Surat’s garment exports.
#TAGS Vibrant Gujarat Regional Conference, VGRC, Auro University, Surat, South Gujarat, Tapi River, man-made fibre, MMF, art silk, Gujarat Textile Policy, CETP plants,