M B Raghunath: Reduction in GST will make mid-market apparel more affordable
The 56th GST Council reforms bring both opportunities and challenges for the textile and apparel sector. While the increase of GST on coal from 5 to 18 per cent will push up fabric processing costs, the reduction of GST on yarn from 12 to 5 per cent should partially balance this out. As a result, fabric prices overall may not see a significant change. What is particularly encouraging is the reduction of GST on garments priced below Rs 2,500 from 12 to 5 per cent. This is a consumer-friendly move that will make mid-market apparel more affordable, stimulate demand, and strengthen growth in this critical segment. For an industry that is both price-sensitive and volume-driven, such measures can provide the much-needed impetus for growth. At Mafatlal, we see this as a positive step that can support industry volumes while ensuring affordability for a wider base of consumers.
This view has been presented by Raghunath Mannil Balakrishnan, Chief Executive Officer at Mafatlal Industries Limited
