Centre Revokes QCO on Textile Machinery, Big Relief for Surat MMF Textile Industry

Surat | Gujarat — The textile entrepreneurs in the country’s largest man-made fabric (MMF) hub are rejoicing as the Ministry of Heavy Industries, government of India has revoked the Quality Control Order (QCO) on textile machinery. 

The textile industry leaders and the South Gujarat Chamber of Commerce and Industry (SGCCI) recently raised concerns over QCO on textile machinery before the Union minister of heavy industries, H D Kumaraswamy, and senior officials of his ministry in New Delhi. SGCCI demanded the removal of the QCO on textile machinery, claiming it would adversely impact growth in South Gujarat.

SGCCI representatives pointed out that the current size of the textile market is $165 billion, and it is expected to grow to $350 billion by 2030. For this growth, about 450,000 high-speed weaving machines will be required, necessitating an investment of $15 billion in machinery. Since some of this machinery is not manufactured in India, SGCCI gave a list of such machinery to the ministry. SGCCI emphasised that decisions regarding the QCO on textile machinery should be reconsidered with consultation from user industries.

SGCCI vice-president-elect Ashok Jirawala said: “In the embroidery industry, each unit operates multiple embroidery machines. Every two to three years, new technology emerges, necessitating the replacement of old machines. However, these machines are also not manufactured in India, hence the industry depends on imports.

Therefore, a request was made to remove the QCO on embroidery machinery as well.”

The representatives pointed out that that many entrepreneurs had booked machines on a letter of credit and if these machines are delivered after Aug 28, 2025, their payments may get blocked, and the machines will not be cleared at ports. On one hand, entrepreneurs face blocked funds, and on the other, banks are reluctant to finance new weaving projects because modern weaving machinery still needs to be imported. 

Ashish Gujarat, former SGCCI president and textile industry leader said, “It was a long-pending demand of the textile sector in Surat for revoking the QCO on textile machinery. About 95% of the textile machineries are imported from other countries. As the technology changes worldwide, there was no need for QCO. Had the QCO on textile machinery continued by the government, the textile sector would have seen huge unemployment rates”