The goods and services tax (GST) rate on all readymade garments having a maximum retail price of more than ₹1,000 should be reduced from 12 per cent to 5 per cent and a uniform GST rate of 5 per cent should be imposed on all types of cotton yarn, synthetic yarn, fabrics, made-ups and garments, Ashish Domestic Garments Manufacturers Association recently demanded.

Babubhai S. Ayar, chairman of Ashish Domestic Garments Manufacturers Association and former vice president of the Clothing Manufacturers Association of India (CMAI), in a pre-budget memorandum sent to the government, said that in order to achieve the textile-clothing industry target of $280 billion by 2025 from the present $140 billion, the government should bring in progressive, export-oriented, labour oriented and production-oriented policy in the new textile policy.

The last textile policy was announced in 2000.

It will also be in the interest of the trade and industry if a new textile policy is announced every five years by the government similar to the announcement of the five-year plans, Ayar said.

He demanded that unrestricted import of duty-free and quota free garments from Bangladesh should be restricted. Further, these garments exported to India by Bangladesh should be made from Indian and local fabric only. Garments made from China fabrics should not be permitted to enter India, he emphasized.

The racket of import of used garments into India should be fully stopped as it affects productivity of Indian trade and production capacity of Indian garment manufacturers remains underutilized, he added.