Apparel Industry Opposes Proposed GST Hike by GoM, Warns of Growth Setbacks

The apparel industry in India has strongly opposed a proposed GST hike, citing concerns over its adverse impact on the sector’s growth. Industry leaders argue that increasing GST rates will lead to higher retail prices, resulting in decreased demand from consumers, especially in the post-pandemic recovery phase. Moreover, the hike could also cause financial strain on small manufacturers and retailers who are already struggling with rising raw material costs. Employment in the sector, which provides livelihoods to millions, could also be severely affected if the hike leads to production slowdowns or closures. The industry has urged the government to reconsider the move and maintain the current GST rate, emphasizing that such a decision would protect the interests of both businesses and consumers.