Ahmedabad has been a major center for textile production in India since the mid-19th century. The Ahmedabad Spinning and Weaving Company was founded on 30 May 1861 by Ranchhodlal Chhotalal, marking the city's first cotton mill.
In the early 20th century, mills such as Calico (1888), Bagicha, and Arvind were established. By 1905, approximately 33 textile mills were operational in the city.
Between 1951 and 1990, spindle capacity in Ahmedabad doubled from about 11 million to over 26 million. Research institutions were established:
By the 1980s, many mills had closed due to competition and outdated infrastructure. Calico Mills ceased operations in 1998 and was auctioned in 2010. According to the RBI, the count of non-operational textile units in Gujarat increased from around 290 in 2000 to over 2,800 by 2010.
The Gujarat Textile Policy 2019âÂÂ2023 offered interest and power tariff subsidies.
The revised Gujarat Textile Policy 2024, announced in October 2024, provides up to 35% capital subsidy, interest subsidies up to 7%, â¹1/unit renewable power subsidy, and monthly payroll support for employment generation.
As of 2023âÂÂ24, Gujarat ranked second among Indian states in textile exports, with a value of approximately USâ¯$5.75â¯billion.
Gujarat is one of the leading producers of cotton and denim in India. Gujarat is involved in technical textiles, supported by institutions such as ATIRA, NID, and NIFT.
Challenges include infrastructure, technological gaps, and inter-state competition.