The Higher cost of production or tough competition from the competitors, the fact is that Indian textile industry is facing harsh challenges and is in doubts how to fix the issues.
Pleading the government, CITI once again presented their concerns about cutting the GST rate on the manmade fiber and yarn to 12% from the current number of 18%.
More a rebellion attitude was seen in the demands when the industry pointed out that the higher taxes will end up forcing the industry to sources yarn and fabric from Indonesia and China are that are surely cheap yet quality suppliers.
The textile industry of India is demanding to reduce the GST to about 12% if the government wants to earn some benefits from their side.
In the discussion the emphasis was placed on the comparison of Indian production costs with leading competition in the region, including; South Korea, China, Thailand and Indonesia.
Apparently it seems like the Indian textile industry is not able to find any better way to deal with the competition, and to be a better player in the region, in field of textile, they are in extreme need of more reliefs and support from the government as they cannot manage their profit margin with the justifiable GST of 18%.
