Due to higher cotton output in the Saurashtra region, many companies have been encouraged to setup spinning mills at Rajkot, Surendranagar and Porbandar.
Several companies have begun surveying to explore setting up of spinning units at cotton growing region.
Gujarat contributes cotton worth Rs 8,200,000 lakh of the total recorded cotton production of the country amounting to Rs 245,00,000.
Gujarat also takes the cake contributing towards 80 percent of the country's cotton exports.
Gujarat has accounted for 3,200,000 bales of cotton out of the 40 lakh bales of cotton exports from India this fiscal, with the surge in cotton production in the state.
Currently, the demand for long-staple cotton has marginally increased over the small-staple cotton.
Saurashtra accounted for half of the export from Gujarat, while north and central Gujarat together contributes rest of the 50 percent.
Gujarat faces stiff competition from its neighboring State of Maharashtra.
Maharashtra produced just 300,000 bales this year as against 1,200,000, the previous year.