GCCI president urging the Central government to consider implementing a uniform textile policy across the country in line with GST

Gujarat chief minister Vijay Rupani exuded confidence that the textile sector is capable of strengthening rural economy and create large-scale employment on the occasion. He added that that his government is working towards building robust infrastructure to ensure that cotton produced by farmers gets consumed by the garment industry in the state, saving time and energy to export it.

On the occasion, GCCI president Shailesh Patwari urged the Central government to consider implementing a uniform textile policy across the country in line with GST. He said that, “Recently, Maharashtra announced its textile policy, under which, the state government is offering subsidies. We believe that there should be only one policy across the country. Otherwise textile units will shut down here and shift to Maharashtra. ”He added that, “Just like the GST, dubbed as one nation-one tax, there should be a uniform policy not just for the textile industry, but for all the sectors. The government should think about ‘one nation policy’ for all the sectors.”

The minister added that the Centre is also supporting foreign direct investment (FDI) in the textile sector, and according to Prabhu it has the potential to create “millions of jobs.”

Prabhu said that, “Contribution of manufacturing sector is only 16 percent to our economy. It is also a fact that the textile sector is a major player in that contribution. But, when only 16 percent of our GDP comes from manufacturing, it is not enough for a sustainable economy. Thus, it is necessary to scale up that contribution.” He also said that, “We mainly export to the US and Europe. And, when the season goes away in those markets, we do not have enough orders, as we don’t have markets in other parts of the world. Garment and apparel industry is working in sub-optimal level. They don’t work for all the 12 months. He added that, “Things can change if we get orders, and that is why we are exploring new markets. We are talking to Latin American countries to explore new markets for our products. We are also working on making Khadi as globally accepted garment. We are also exploring Australia as a potential market.”

Union commerce and industry minister Suresh Prabhu gave importance on the requirement to support the textile industry to encourage the manufacturing sector, as he claimed that the sector contributes only 16 percent to the country’s GDP at present. He said that said he is holding talks with various countries to explore new markets for Indian fabrics, garments and apparels in order to boost exports, as he said the industry is working in ‘sub-optimal’ level for its over dependence on the European Union and the US for exports. He was speaking at the three-day inaugural ceremony organised by the Gujarat Chamber of Commerce and Industry (GCCI) as well as Maskati Cloth Market Mahajan called of the ‘Farm to Fashion – Indian Textile Global Summit 2018.’