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Mumbai, January 10, 2025: In a unique initiative towards strengthening the domestic garment sector, Clothing Manufacturers Association of India (CMAI) and 14 leading Garment Trade Associations from across India collectively met as a Group of Associations and under ONE INDUSTRY, ONE VOICE passed a unanimous resolution for submission to Group of Ministers (GoM) to abandon a proposal to modify GST rates in the Garment Sector, and retain the existing structure of 5% and 12%.
It is perhaps the first time that so many large Associations from across the country got together to discuss common issues and programs, as also to submit a common representation to the Government.
The main aim of the meeting was to foster a united, collective approach to secure long-term growth. Other key decisions encompassed vital budget recommendations to boost the apparel trade, drive sustainable growth and address critical industry needs. The five key recommendations are stated as below:
recommended to either:
Interest Subsidy for the Domestic Garment sector: It is urged to introduce an interest subsidy for the Domestic Garment sector, similar to the support being provided to the Export sector. The Domestic Garment industry does not require heavy capital investment, but it does need assistance with interest costs. While MSME support is essential, they deserve special attention due to its unique challenges. Despite the lack of incentives, the Domestic sector has shown significant growth and targeted assistance would further boost its potential.
Speaking after the meeting, Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI) stated, “We are glad that all the leading associations have come together under Group of Associations to address these concerns and create a unified voice for the industry. As CMAI, we are committed to presenting comprehensive recommendations to the Government on critical matters such as GST, Supply Chain Disruptions, Rising Input Costs and the need for Policy reforms. These are essential to ensure long-term growth and sustainability of the Apparel sector.”
Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) expressed, “While we are seeing shift in consumer sentiments, it is crucial to recognize that without timely policy interventions, the sector will continue to face challenges. The Apparel industry requires policies that nurture its growth and ensure a balanced approach that fosters both immediate stability and long-term sustainability. A supportive policy framework will be vital in unlocking the sector's full potential and translating positive consumer trends into tangible, sustainable growth for the industry.”
Other leading Garment & Textile Trade Associations from across India who participated included Garment Exporters Association of Rajasthan (GEAR) – Jaipur; Bangalore Apparel Manufacturers Association (BAMA) – Bengaluru; South India Garment Association (SIGA) – Bengaluru; Karnataka Hosiery & Garment Association (KHAGA); Karnataka Innerwear Association (KIA) – Bengaluru; Knitwear & Apparel Manufacturers Association of Ludhiana (KAMAL) – Ludhiana; Woolen Garment Manufacturers Association – Ludhiana; Tirupur Exporters Association (TEA) – Tirupur; Federation of Surat Textile Traders Association (FOSTTA) – Surat; GVS – Surat; Indore Readymade Vastra Vyapari Sangh (IRVVS) - Madhya Pradesh; Gujarat Garment Manufacturing Association (GGMA) – Ahmedabad; Sholapur Garment Manufacturers Association (SGMA) – Maharashtra; Noida Apparel Exporters Cluster (NAEC) – Noida, UP and others.
The apparel industry, with a robust retail market size of INR 5.4 lakh crore, stands as a cornerstone of the Indian economy. Beyond its economic significance, the sector is a major employment driver, providing livelihoods to approximately 39 million people, including 16 million blue-collar jobs in domestic production. While the industry has demonstrated impressive growth and resilience, there is immense potential for even greater success. Byimplementing targeted support and initiatives, the sector can unlock new opportunities for sustainable growth and long-term stability.
About CMAI Established sixty-one years ago, The Clothing Manufacturers Association of India (CMAI) is the most representative association of the Indian apparel industry having over 5000 members and serving more than 35,000 Retailers across India. Its Membership consists of Manufacturers, Exporters, Brands, and ancillary industry.
CMAI has contributed immensely towards development of the industry. It acts as a catalyst of Change, Evolution, and Transformation by regular interactions with the Government to encourage industry-friendly policies on one hand, and with the Members to keep pace with the dynamics of market forces on the other. CMAI has been responsible for influencing several measures in policies of the Government including GST, PLI, Duty Drawback, Export Promotion Schemes, FTAs, etc. It is also playing a vital role in pushing the industry into a more ESG and Sustainability oriented working.