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Textile Minister Highlights GST 2.0 As Game-Changer For Industry Growth

• By  Textile Excellence
• November 04, 2025

Union Textiles Minister Giriraj Singh has described the GST 2.0 reform as a landmark moment for India’s textile sector, stating it will lower costs, correct duty inversion, boost demand and strengthen the global competitiveness of the industry. Singh outlined the reform’s potential to help India achieve a US$ 350 billion textile economy by 2030.

According to the Economic Survey 2024-25, the textile and apparel industry contributes around 2.3 % of GDP, 13 % of industrial production and 12 % of exports. The sector currently employs over 45 million people, making it the second-largest employment creator after agriculture.

Singh emphasised that GST 2.0 reduces the tax burden on essential garments, improves input cost structures for producers and creates a fibre-neutral regime that benefits micro, small and medium enterprises (MSMEs). The reform introduces a simplified two-slab tax framework and reduces GST on key textile inputs and finished goods, which analysts expect to boost domestic consumption and exports.

Industry stakeholders welcomed the announcement, noting that reduced compliance costs, improved competitiveness in man-made fibre segments and increased investment under programmes like the Production Linked Incentive Scheme (PLI) and PM MITRA Parks will be vital. As the reforms roll out, the textile sector may gain vital momentum in India’s ambition to become a global textile manufacturing hub.

Singh emphasised that GST 2.0 reduces the tax burden on essential garments, improves input cost structures for producers and creates a fibre-neutral regime that benefits micro, small and medium enterprises (MSMEs). The reform introduces a simplified two-slab tax framework and reduces GST on key textile inputs and finished goods, which analysts expect to boost domestic consumption and exports.