Textile sector pins hope on 5% GST rate

It provides direct employment to an estimated 45 mn individuals and indirect jobs to another 60 mn

The textile industry is awaiting the central government's decision on whether the new goods and services tax (GST) rate would be five per cent for segments presently not subject to any indirect tax or stick to one of 12 per cent.

The sector provides direct employment to an estimated 45 million individuals and indirect jobs to another 60 million. And, is a tenth of the country's manufacturing. Textile commodities have a seven point weight in the Consumer Price Index.

Observers say there is a large 'grey market' which is completely outside the ambit of tax payment.

Currently, fabrics are fully