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29 December 2021, Mumbai:
Uniform goods and services (GST) tax will be applied at 12 per cent on manmade fiber, yarn, fabrics and apparel. The aim is to address the inverted tax structure in the manmade fiber textile value chain and help the manmade fiber segment grow and emerge as a big job provider in the country.
Textile and apparel production in India is approximately $140 billion including $40 billion of textiles and apparel exports.
The textile and apparel industry contributed two per cent to the overall GDP of India in 2019 and 11 per cent to total manufacturing.
The industry has the capacity to generate around 70 jobs in garmenting and an average of 30 jobs overall for every Rs 1 crore invested as compared to 12 jobs created on an average in other industries.
With direct and indirect employment of close to 105 million people, this industry is the second largest employment generator in the country, next only to agriculture. More significantly, women constitute 70 per cent of the workforce in garment manufacturing and about 73 per cent in handloom.
Also seven Pradhan Mantri Mega Integrated Textile Region and Apparel parks will offer the opportunity to create an integrated textile value chain.
