Landmark GST Reforms Revitalize India’s MMF Textile Sector: NITMA Welcomes Policy Breakthrough
The Northern India Textile Mills Association (NITMA) celebrates a historic milestone for India’s Manmade Fibre (MMF) textile industry with the recent Goods and Services Tax (GST) rationalization. This landmark reform is set to fortify the MMF value chain across the country, driving innovation, growth, and global competitiveness.
Commenting on the development, Mr. Sidharth Khanna, President of NITMA, said:
“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:
• Reduction of GST on Manmade Fibres from 18% to 5%
• 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.”
This correction, along with the removal of import duty on cotton (HSN 5201) until December 31, 2025, comes at a vital time. Amidst global trade disruptions, including U.S. tariffs and volatile market conditions, these reforms provide renewed momentum to India’s textile ecosystem and empower exporters with greater resilience.
On behalf of NITMA and its members, heartfelt gratitude is extended to the Hon’ble Prime Minister, Shri Narendra Modi Ji, for his visionary leadership and steadfast support of the MMF textile industry. Special thanks are also offered to:
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 the dedicated teams within the Ministries of Textiles & Finance Their collective efforts have laid the foundation for a more resilient, efficient, and globally competitive textile industry.
These reforms are instrumental in supporting the national vision of Viksit Bharat and in realizing India’s ambition of achieving USD 100 billion in textile exports by 2030.
NITMA Secretariat
Email: info@nitma.org
