Mafatlal CEO: GST Reforms to Boost Apparel Affordability

Following the announcement of the new GST reforms by Finance Minister Nirmala Sitharaman, Raghunath Mannil Balakrishnan, Chief Executive Officer at Mafatlal Industries Limited, shared his perspective on their impact on the textile and apparel industry.

Mr. Balakrishnan stated:

“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% will push up fabric processing costs, the reduction of GST on yarn from 12% to 5% 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 ₹2,500 from 12% to 5%. 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.”

Mr. Balakrishnan emphasized that these reforms could help balance cost pressures while driving demand for affordable apparel, supporting growth in India’s textile value chain.