On-and-off nationwide strikes against the recently implemented Goods and Services Tax (GST) has hit the textile industry and its labourers quite hard. Due to shut down of textile manufacturing units, thousands of workers have been rendered jobless.
The new taxation system has come at a time when the textile industry is struggling with the post-demonetization situation that came into effect on November 8 last year.
Most of the busy textile markets such as Burrabazar in Kolkata, Bhilwara, the textile hub of Rajasthan, and Surat – the hub of man-made fibre (MMF), in India have been witnessing deserted markets as textile traders have been busy holding protest rallies against the Centre over GST. Gujarat, Maharashtra, Tamil Nadu and Odisha are also facing a similar business situation.
According to media reports, Bhilwara has already recorded Rs. 300 crore loss due to the GST strike. The textile merchants’ demand includes the exemption of the apparel and textile segment from the new tax regime.
It remains to be seen whether the Government would accept the demands of the textile industry. Most likely, the trade perspective for the entire textile value chain is projected to remain uncertain till the next verdict of the Government on GST.
