India’s latest GST 2.0 reforms are shaking things up for the textile and logistics sectors, making everyday goods cheaper and helping businesses thrive. These changes aim to fix tax glitches, cut costs, and spark more demand, all while boosting jobs and exports. An official statement released on Thursday highlights how this will supercharge domestic growth.
In the textile industry, which employs millions and drives exports, the reforms smooth out the entire supply chain—from raw fibres to finished garments. By tweaking tax rates, they make clothes more affordable for everyone, especially middle- and low-income families in small towns and rural areas. This should revive retail sales and keep the sector buzzing.
Take readymade garments, for example: GST on pieces up to Rs 2,500 now drops to just 5%, down from higher rates. That’s great news for shoppers hunting for budget-friendly apparel. Man-made fibres and yarns see even bigger relief—their GST falls from 12% and 18% to 5%, wiping out the “inverted duty structure” that was hiking costs. Small and medium enterprises (SMEs) in textiles will love this, as it levels the playing field.
Carpets and other textile floor coverings also get a boost, with GST slashed from 12% to 5%. This makes Indian products more competitive on the global stage, helping exporters grab a bigger slice of the international market.
The logistics side is equally exciting. Commercial goods vehicles, like trucks and delivery vans that handle 65-70% of India’s freight, now face 18% GST instead of 28%. Lower taxes mean cheaper transport, which cuts the cost per tonne-km for moving textiles, FMCG goods, and e-commerce parcels. In the end, this eases inflation by reducing overall prices and makes Indian exports, especially textiles, punchier against foreign rivals.
These GST rationalisation moves aren’t just tweaks—they’re a game-changer for India’s manufacturing edge. Consumers save money, small businesses grow stronger, and the economy gets a lift from resilient supply chains. It’s all part of building a more competitive India, with thriving textiles at the heart.
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