While textile traders of Gujarat are protesting against goods and service tax (GST), corporate of the textile industry have favoured GST. At the inauguration of ‘Textile India 2017’ in Gandhinagar, textile industry leaders have said that it is a bold steps of government and will help the informal sector of the industry. Textile traders in Gujarat were on a three-day strike to protest against the proposed rate of GST on the industry and have given an ultimatum to the government that if it will not remove GST, traders will go for an indefinite strike from July 1. On the other hand, big companies like Raymond Limited, Aditya Birla Group and Arvind Limited have expressed their views in favour of GST. “Implementation of GST is a historical and bold decision of the present government. It will bring transparency in the industry. GST will help informal sector of the textile industry,” said Sanjay Lalbhai, chairman and managing director of Arvind Limited. Adding to it, Lalbhai said, “This move will push Indian textile Industry to be more competitive and this will help the industry to compete with China in global front.” The corporates also believe that GST is the biggest transformation of tax in India and it will take the industry to the new high. Gautam Singhania, chairman and managing director of Raymond Group, said, “The move will create seamless and inclusive business environment which will enable exponential growth in the economy. It is expected that in next three to four years, size of Indian textile Industry will be double to about $200 billion.” Top international brands like US Polo Assn also shared
Top international brands like US Polo Assn also shared similar view. The company’s president and chief executive officer David Cumings said, “GST is not only good for Indian companies but also for the international companies like us. India has potential to be the largest or one of the largest textile centers in the world.” Chairman of Aditya Birla Group, Kumar Mangalam Birla, called for a research and development in textiles. “We must step up rigor in skill development to deliver world class productivity. We must also boost our investment in high-tech research and development,” he said. Inaugurating the Textile India 2017 exhibition, Prime Minister Narendra Modi described India as a bright spot in the global economy. It has emerged as one of the most attractive global investment destinations. Modi said, “We have one of the most liberal investment policies for foreign investment in the textile and apparel sector. We allow 100% FDI through automatic route in textile and apparel sector.” Addressing to the textiles industry, Prime Minister also said that the industry has a pivotal position in the Indian economy. It is strong and competitive across the value chain. India has an abundant supply of raw material like cotton, wool, silk, jute, and man-made fibre. “Now, it is time to concentrate on
Modi said, “We have one of the most liberal investment policies for foreign investment in the textile and apparel sector. We allow 100% FDI through automatic route in textile and apparel sector.” Addressing to the textiles industry, Prime Minister also said that the industry has a pivotal position in the Indian economy. It is strong and competitive across the value chain. India has an abundant supply of raw material like cotton, wool, silk, jute, and man-made fibre. “Now, it is time to concentrate on textile industry in a big way. India is the world’s largest producer of cotton and jute, and second largest producer of silk and man-made fibre. This provides us the distinct advantage of backward integration, which many other countries may not have.” He also claimed that the sector is second largest employer after agriculture in the country. Over 45 million people are employed directly in the sector, and more than 60 million people are employed in allied activities. The exhibition is a part of the first of its kind Textile India Summit 2017. This maiden initiative is a collaborative effort of 24 export promotion councils under the ministry of textiles and the Confederation of Indian Industry (CII). This mega exhibition will showcase India’s strength in the entire gamut of textile and apparel value chain from fibre to fashion. The exhibition is a platform to strengthen the textile value chain in India and offers a perfect environment for B2B engagements to explore new partnerships, business relationships, investment opportunities and technological tie-ups across various segments. More than 1,500 national and international exhibitors from the textile sector are exhibiting their products and services. Over 2,500 international buyers and 15,000 domestic visitors are expected to attend the exhibition.