The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has raised an urgent call for action, urging the state government to accelerate work on the PM Mitra Mega Textile Park in Navsari and pressing for a sharp cut in GST rates that textile players say are crippling the industry.
In a letter to Chief Minister Bhupendra Patel, SGCCI President Nikhil Madrasi voiced the unease of entrepreneurs, pointing out that the ambitious park at Vansi-Borsi has seen little to no physical progress nearly two years after agreements were signed. Despite a memorandum of understanding in July 2023 and the creation of a Special Purpose Vehicle, the chamber noted that no master developer has been appointed and construction is yet to begin.
&ldquo;The establishment of PM Mitra Park at Vansi-Borsi will open new doors of growth for the textile industry not only in Navsari but across South Gujarat. However, almost two years have passed since the agreement, and no significant action has been taken,&rdquo; Madrasi wrote.
Industry leaders believe the textile park could attract large-scale investment, create thousands of jobs, and boost exports, but concern is mounting over bureaucratic delays. SGCCI has appealed for the Chief Minister&rsquo;s direct intervention so that South Gujarat does not lose the momentum to establish itself as a global textile hub.
Alongside this push, SGCCI has also stepped up its demand for relief from high GST rates on man-made fabrics and their raw materials. Partnering with associations across India, the chamber is lobbying for the GST rate on inputs such as paraxylene, caprolactam, Mono Ethylene Glycol, purified terephthalic acid, dissolving grade wood pulp, nylon and polyester chips to be reduced from 18 per cent to 5 per cent.
A delegation led by SGCCI vice-president Ashok Jirawala and former president Ashish Gujarati recently presented this case to Central Board of Indirect Taxes and Customs (CBIC) chairman Sanjay Agarwal. They also demanded that garments priced above ₹2,500 be taxed at 5 per cent instead of the current 18 per cent, arguing that the steep levy is inflating costs for consumers and discouraging investment.
Industry representatives said the CBIC chairman heard them out positively, but the sector remains anxious about the continued impact of an inverted duty structure and delays in Input Tax Credit refunds, both of which have squeezed margins and stalled expansion plans.
With the textile park still awaiting liftoff and GST concerns unresolved, South Gujarat&rsquo;s fabric industry, one of the country&rsquo;s largest, now finds itself at a crossroads. SGCCI&rsquo;s message is clear: the state must act decisively, or risk letting an industry with enormous potential lose its edge.

SGCCI Presses CM on Textile Park, GST Relief

Chamber presses CM on stalled Navsari project, seeks GST cut for fabrics industry

SGCCI Presses CM on Textile Park, GST Relief

Chamber presses CM on stalled Navsari project, seeks GST cut for fabrics industry

September 15, 2025 | 18:04 IST