In view of large number of workers from Odisha, the Federation of Gujarat Weavers Association (FOGWA) and its subsidiary Pandesara Weavers Association has now urged Odisha Chief Minister Naveen Patnaik to raise their concerns to the centre.
The textile bodies in a letter sent to CM Patnaik recently, have described how the implementation of GST in July last year still haunts the industry and resulted into job loss for around 40,000 workers. The textile industry in Gujarat offers employment to more than 5 lakh people from Odisha, mainly from tribal areas.
The impact of GST on textile industry prepared by the FOFWA was discussed during an open discussion organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) on July 14. GST officials in Surat and textile industry members attended the discussion.
The implementation of GST resulted into closure of 6,000 powerloom factories and more than 1 lakh powerloom machines were scrapped. A total of 4 lakh powerloom workers lost their jobs while those operational have reported decline in their production capacity.
Yarn cost despite reduction of GST from 18 per cent to 12 per cent still causes trouble to tge powerloom industry. India has noted an increase in garment import post GST, claimed the FOGWA report.
In addition to powerloom, widespread impact has also been felt on the Man-Made Textile Fabric industry of Surat after GST.
