Clothing makers want GST cut from 12% to 5%

The Garment Manufacturers Association of India has urged the Center to reduce the GST on all made-up garments from 12% to 5% and keep the same on all types of cotton yarns, synthetic yarns, fabrics and garments.

In a pre-budget memorandum sent to the Centre, Babubhai S Ayar, Chairman of the Ashish Domestic Garment Manufacturers Association and former Vice President of the Garment Manufacturers Association of India, said that to develop the textile and apparel industry to the set target of 280 billion dollars by 2025, the government should introduce a progressive export and production-oriented policy in the new textile policy.

Regulate imports

Unrestricted import of duty-free garments from Bangladesh and China should be restricted, he said.

“Furthermore, the importation of used garments into India should be stopped completely as it affects the productivity of trade and the production capacity of Indian garment manufacturers,” he said. Although the government has increased the limit for small industries to ₹5 crore, banks are not extending the 1.5% denomination on lending rates to businesses which have been reclassified as SSI under new standards.

The last textile policy was announced in 2000. It will be in the interests of trade to develop a new textile policy every five years, he said.

Urging the government to facilitate textile parks such as the new 100-acre Asmita Apparel Park in the outskirts of Mumbai, Ayar said the production-linked incentive scheme for garments and garments should be made applicable to the fiber and yarn.

Michael O. Stutler