Textile leader Welspun strategically move to Odisha over Gujarat due to favorable policies

Prominent textile giant Welspun, a key player in Gujarat's textile sector, has announced a significant departure from the state by redirecting a staggering investment of Rs 3,050 crore towards an integrated textile manufacturing facility and warehousing complex in Choudwar, Odisha. This strategic move underscores growing discontent within Gujarat's textile industry, with concerns over the state's textile policy and a potential shift in dynamics within India's textile landscape. The decision has been welcomed by the Odisha government, positioning the state as an appealing destination for textile investments amidst favorable policies and a skilled workforce.

Welspun's decision to invest heavily in Odisha marks a departure from its established presence in Gujarat, with manufacturing facilities in Vapi and Anjar in Kutch. The move is seen as a response to the absence of a much-anticipated industry-friendly textile policy in Gujarat. Industry insiders suggest that Welspun's shift may be the precursor to other textile giants exploring opportunities beyond Gujarat. The foundation stone for the ambitious project in Odisha was laid by Chief Minister Naveen Patnaik, signaling the state's proactive stance in attracting textile investments.

The textile industry in Gujarat has been vocal about its concerns, urging the government to expedite the formulation of a new textile policy. With the previous policy expiring on December 31, 2023, industry leaders have stressed the need for continuity, particularly regarding incentives for the cotton spinning sector. The Odisha government's favorable policies and the abundance of skilled textile workers in the state are positioning it as an attractive alternative for textile investments.