GST to create level-playing field for bigger textile manufacturuers
Dated 6th December, 2016
The introduction of GST will help create a level-playing field for the bigger textile manufacturers as smaller or unorganised sector will not be able to use some of the current practices to keep themselves competitive, a senior industry official said.
“The introduction of GST may not have any negative or positive impact for the textile industry in general. However, the consolidation of taxes will help create a level-playing field for the bigger textile manufacturers as smaller or unorganised sector will not be able to use some of the current practices to keep themselves competitive,” Sintex Industries Group MD Rahul A Patel was quoted as saying on the sidelines of India ITME 2016 event.
Sintex aims to install one million spindles and has already become world’s No 1 compact facility with over 3,00,000 spindles installed at their plant at Pipavav in Gujarat, Patel said.
The textile sector is one of the largest contributors to India’s exports, accounting for approximately 11 per cent of the total outbound shipments. India’s overall textile exports during FY 2015-2016 stood at US $40 billion and the industry size is expected to reach US $223 billion by 2021.
The ongoing six-day India ITME 2016 exhibition provides a platform for joint ventures and collaborations between the stakeholders of textile industry in India and overseas. Nearly 1,050 exhibitors from 38 countries are displaying state-of-the-art machines and technologies at the event.