Textile Industries Can Benefit By Reclassification of MSMEs In India

Textile industry is anticipated to gain from the reclassification of MSMEs.  Further 5 percent reduction in tax on annual turnover of companies up to Rs. 250 crore will also be catalystic to boost the growth and employments in the texttile manufacturing Industries in India. Government has also increased the custom duty on Silk and hand crafted fibres, this will further provide added benefits to local manufacturers and handloom Industries in India, as they were facing fierce price competition from the cheap Chinese textile products that was flooding the market.

The revised GST will further provide ease of business for textile garment Industry.. GST rate has been reduced on yarn from 18% to 12% and GST on job work has been brought down from 18% to 5%. Support for merchandise scheme has been enhanced from 2% to 5% for the apparel sector. The subsidy scheme can further provide gain of 16% to apparel sector for effective implementation of subsidy schemes.

Rs.138 crore has been disbursed to 28000 weavers as Mudra loan and 1.8 lakh garment workers have formally joined Employees Provident Fund Organisation (EPFO).

Major steps are being taken by the government to provide growth to the Textile Industry In India.