Tax Hike Warning: Textile Industry Faces Economic Ripples

The Confederation of Indian Textile Industry (CITI) has expressed concerns over the proposed GST increase on ready-made garments, warning of negative impacts on the economy and employment. CITI urges the government to maintain a balanced GST approach for garment pricing to stimulate sector growth while preserving affordability.

The Confederation of Indian Textile Industry (CITI) on Thursday raised alarms about an impending increase in GST rates on ready-made garments. The proposed tax revision could significantly disrupt the industry, employment, and broader economy.

CITI has called on the government to reassess the proposed GST hike, arguing for a balanced strategy that supports textile sector growth and ensures consumer affordability.

Under the proposed changes, garments priced above Rs 1,500 could lead to substantial tax increases, affecting consumer prices and sector dynamics. CITI stresses the importance of nurturing industry growth rather than creating economic barriers.

(With inputs from agencies.)