goods and service tax

Govt Supports Textile Industry: GST Delay and $100 Billion Export Target

Introduction

In a recent address to the All India Textiles Association, Union Minister for Textiles, Commerce & Industry, and Consumer Affairs and Public Distribution, Shri Piyush Goyal, expressed gratitude to Prime Minister Narendra Modi for the decision to postpone the increase in the GST slab from 5% to 12% for the textiles sector. His speech highlighted the importance of collaboration between the government and the textile industry, aiming to bolster India's position as a global leader in textiles.

GST Notification and Industry Growth

Shri Goyal announced that the deferment of the GST rate hike serves as a significant encouragement for the textile industry, particularly in these challenging times that mark the recovery phase. He noted that stakeholder feedback played a crucial role in this decision during the 46th GST council meeting.

  • Key Points:
    • GST slab increase from 5% to 12% delayed as a gift for the industry.
    • Acknowledgment of industry leaders for voicing their concerns.

A Vision for $100 Billion Exports

During his interaction with textile industry leaders, Shri Goyal emphasized the need for swift action towards achieving the ambitious target of $100 billion in textile exports. He encouraged collective efforts during the ongoing Azadi ka Amrit Mahotsav to realize this goal.

  • Goals:
    • Work collectively to enhance exports.
    • Strengthen partnerships between industry and government.

Initiatives and Reforms for Self-Reliance

Shri Goyal outlined several initiatives aimed at enhancing the textile ecosystem, noting the empowerment of various segments from artisans to MSMEs. He reiterated the government's commitment to an Aatmanirbhar Bharat by focusing on:

  • Transformational Reforms:
    • Empowerment through skill development.
    • Economic contributions from every sector, including women entrepreneurs.

Call for Collaboration

The Minister invited industry leaders to provide suggestions on how to further develop and improve the textiles sector. He highlighted the motto of "Subka Saath, Subka Vikas, Subka Prayas, and Subka Vishwas" as crucial for achieving collective objectives.

Key Development Schemes

Shri Goyal emphasized the importance of several schemes that aim to boost the sector's competitiveness:

  • Production Linked Incentive (PLI) Scheme for Textiles:

    • A budget of ₹10,683 crore to enhance global reach in MMF and technical textiles.
    • Creation of approximately 7.5 lakh direct jobs.

  • PM MITRA Parks:

    • Seven integrated textile parks to attract cutting-edge technology and investment, generating significant employment opportunities.

  • Continuation of RoSCTL Scheme:

    • Extended until March 2024 to enhance export competitiveness.
    • Inclusion of RoDTEP for textiles products outside apparel and made-ups.

  • Removal of Anti-Dumping Duties:

    • Lifting of duties on key raw materials like PTA and Viscose Staple Fibre supports the man-made fiber-based textiles industry.

Focus on Free Trade Agreements (FTA)

Shri Goyal noted the government's ongoing efforts to secure new textile markets through FTAs, specifically targeting concessional duties for textile products in negotiations with key countries such as the UK, UAE, Canada, EU, and Australia.

SAMARTH Scheme and Skill Development

The Minister discussed the SAMARTH Scheme's success in onboarding key industry players to support skill development and training, impacting approximately 3.45 lakh beneficiaries. Moreover, he mentioned enabling weavers to sell directly to the government through the GeM platform, with about 1.50 lakh weavers currently onboarded.

Financial Assistance for Weavers

Under the Concessional Credit/Weaver MUDRA Scheme, financial aid is being provided to weavers, including:

  • Margin Money Assistance:
    • 20% on loans up to a maximum of ₹25,000 for individual weavers.
    • 20% on loans up to a maximum of ₹20 lakh for handloom organizations.

Export Growth and Resilience

Shri Goyal reported a remarkable 45% increase in textile exports, amounting to $16.7 billion from April to November 2021 compared to the same period in 2019. He reflected on the industry's resilience during the COVID pandemic, stating that challenges have provided valuable lessons and opportunities for growth.

Conclusion

Shri Piyush Goyal's address highlights the government's ongoing partnership with the textile sector, aimed at achieving significant export targets while empowering various stakeholders. Continued collaboration and proactive measures are essential for realizing the sector's full potential and establishing India as a leading player in the global textiles market.