The Northern India Textile Mills Association (NITMA) has welcomed the recent Goods and Services Tax (GST) rationalization as a historic reform that will reshape the future of India’s Manmade Fibre (MMF) textile industry. The policy change addresses long-pending industry concerns and strengthens the MMF value chain, paving the way for innovation, growth, and enhanced global competitiveness.
Mr. Sidharth Khanna, President of NITMA, expressed his views:
“We are pleased to share that the long-standing issue of the inverted duty structure in GST for MMF textiles has been successfully addressed. This reform includes:
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Reduction of GST on Manmade Fibres from 18% to 5%
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Reduction of GST on Manmade Yarns from 12% to 5%
These changes will significantly lower costs across the MMF and Technical Textiles value chain, enhancing efficiency and export competitiveness.”
In addition, the removal of import duty on cotton (HSN 5201) until December 31, 2025, offers further relief at a critical moment for the textile industry. With ongoing global challenges such as U.S. tariffs and fluctuating trade dynamics, these reforms inject renewed momentum into India’s textile ecosystem, giving exporters greater resilience and adaptability.
On behalf of its members, NITMA extended deep appreciation to the Hon’ble Prime Minister Shri Narendra Modi Ji for his visionary leadership and consistent support for the textile sector. The association also expressed gratitude to the Hon’ble Union Finance Minister, Smt. Nirmala Sitharaman Ji; Hon’ble Union Textile Minister, Shri Giriraj Singh Ji; Smt. Neelam Shami Rao Ji, Secretary (Textiles); and officials from the Ministries of Textiles and Finance for their tireless contributions to these reforms.
NITMA believes this breakthrough will be instrumental in realizing the collective vision of a Viksit Bharat and achieving India’s ambitious target of USD 100 billion in textile exports by 2030.
