CMAI and Garment Associations Unite to Oppose GST Changes

In New Delhi, the Clothing Manufacturers Association of India (CMAI) and 14 major garment trade associations joined forces under the banner "One Industry, One Voice." They unanimously urged the Group of Ministers to retain the current Goods and Services Tax (GST) rates of 5% and 12% for the garment sector, warning against proposed changes that could disrupt manufacturing and weaken consumer demand.

Key Policy Recommendations

The associations developed five key policy recommendations to support sustainable growth and stability in the garment industry:

• Abandon GST Rate Revision: The proposed changes could harm affordability and employment, especially in festive and wedding apparel.
• Sector-Specific PLI Scheme: A tailored Production Linked Incentive scheme for garments to better suit their operational scale.
• Protecting MSMEs: Classify MSMEs as secured creditors during insolvency to ensure fair compensation.
• Rectify Section 43B(h): Amend the Income Tax Act to support smaller manufacturers.
• Interest Subsidy for Domestic Sector: Introduce financial support to unlock growth potential.

Industry Leaders Speak

Santosh Katariya, President of CMAI, emphasized the importance of a unified voice to address critical issues like GST and supply chain disruptions. Rahul Mehta, Chief Mentor of CMAI, highlighted the need for policies that ensure both immediate stability and long-term growth.

The apparel industry, valued at Rs5.4 lakh crore, employs around 39 million people in India. With the right support, it can achieve further expansion and sustainability.