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SGCCI sees polyester textile production fall by 40% per year

Published
today Aug 19, 2019
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The Southern Gujarat Chamber of Commerce and Industry’s textile committee has reported that polyester textile production has decreased by 40% per year since 2016 and has sought central government assistance.


Surat’s man-made-fibre industry has seen production decrease over the past few years


Surat, India’s largest man-made-fibre production area, has seen polyester production decrease significantly since the government introduced the Goods and Services Tax in 2016, the SGCCI said in its latest report on the industry. The SGCCI has cited higher raw materials costs, including yarn costs, as one reason for this, as well as increased competition from China, Bangladesh, and other Asian countries that are importing cheap textiles into India.

“There are issues galore in the MMF sector,” the SGCCI’s textile committee chairman Ashish Gujarati told the Times of India. “Prior to implementation of GST, there were 6.5 lakh powerloom machines in Surat. Post-GST, the total number of weaving machines have been reduced to just 5.5 lakh.” 

Gujarati also told the Times of India that he has sought assistance from the central government’s Minister for Textiles Smriti Irani and submitted the report to her. The SGCCI report names the micro, small, and medium enterprise sector as one of the most important sectors for the Union Government’s “Make in India” campaign and argues for increased government assistance for the industry.

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