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.[1]
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.[2]
Development post‑Independence
Between 1951 and 1990, spindle capacity in Ahmedabad doubled from about 11 million to over 26 million.[3] Research institutions were established:
ATIRA (Ahmedabad Textile Industry’s Research Association) was formed in 1947 and began operations in 1949. It is recognized by the Ministry of Textiles and CSIR.[4]
The Calico Museum of Textiles, established in 1949, focuses on the preservation and study of Indian textile traditions.[5]
Decline in late 20th century
By the 1980s, many mills had closed due to competition and outdated infrastructure. Calico Mills ceased operations in 1998 and was auctioned in 2010.[6] 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.[7]
Policy and modern developments
The Gujarat Textile Policy 2019–2023 offered interest and power tariff subsidies.[8]
The revised Gujarat Textile Policy 2024, announced in October 2024, provides up to 35% capital subsidy, interest subsidies up to 7%, ₹1/unit renewable power subsidy, and monthly payroll support for employment generation.[9][10]
As of 2023–24, Gujarat ranked second among Indian states in textile exports, with a value of approximately US $5.75 billion.[11]
Current status
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.[12][13]
Challenges include infrastructure, technological gaps, and inter-state competition.[14]
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