This document summarizes the Indian government's response to Lok Sabha Starred Question No. 368, addressed on August 19, 2025, regarding the state of the textile industry.
The response indicates that, contrary to the premise of the question, India's exports of textiles and apparel, including handicrafts, grew by 2% between April-June 2024 and April-June 2025, increasing from USD 9,141 million to USD 9,326 million. Data is sourced from DGCIS Provisional Data.
Regarding the demand for a uniform Goods and Services Tax (GST) across the textile apparel value chain, the government acknowledges receiving representations from the industry and has referred them to the Department of Revenue, Ministry of Finance. The government outlines the current GST rates applied to various segments: jute fibre and raw silk are exempt; raw cotton is taxed at 5% under reverse charge, with cotton yarn and fabric also at 5%. Jute yarn and fabric, and silk yarn and fabric are taxed at 5%. Apparel and clothing accessories are taxed at 5% if the sale value does not exceed ₹1,000 per piece and at 12% if the sale value exceeds ₹1,000 per piece. Handicrafts, handmade carpets, handmade lace, and handwoven tapestries are taxed at a uniform rate of 5%.
Finally, the government addresses concerns about normal cotton being sold as organic cotton. Organic cotton certification is covered until the production stage under the National Programme for Organic Production (NPOP), implemented by the Department of Commerce. In 2024-25, the total production of organic cotton under NPOP was 24.96 lakh MT, including 21.92 Lakh MT organic and 3.03 Lakh MT in conversion production. Post-production activities are handled under private certifications. Certification Bodies accredited by the National Accreditation Body under NPOP are responsible for certifying organic products, and appropriate action is taken under NPOP when deviations/violations are observed.
Key Entities Referenced
LOK SABHA: The lower house of the Parliament of India, where the question was raised.
Minister of TEXTILES: The government official responsible for the textile industry.
SHRI SELVAGANAPATHI T.M.: Member of Parliament who raised the starred question.
Goods and Services Tax: An indirect tax used in India on the supply of goods and services.
SHRI PABITRA MARGHERITA: Minister of State for Textiles who provided the answer to the question.
DGCIS: Directorate General of Commercial Intelligence and Statistics, source of export data.
Department of Revenue, Ministry of Finance: The government department responsible for matters relating to revenue.
National Programme for Organic Production (NPOP): A program implemented by the Department of Commerce for organic certification.
LOK SABHA
STARRED QUESTION NO. *368
TO BE ANSWERED ON 19.08.2025
DECLINE IN TEXTILE EXPORTS
*368. SHRI SELVAGANAPATHI T.M.:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the textile exports have declined by 2.07 per cent in June, 2025, if so, the details thereof;
(b) whether there is demand from textile sector for a uniform Goods and Services Tax for textiles apparel
value chain;
(c) if so the details thereof along with the steps taken by the Government in this regard;
(d) whether the Government is aware that normal cotton is being sold as organic cotton in some States;
and
(e) if so, the details thereof?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) to (e):- A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION
NO.*368 FOR 19.08.2025 REGARDING DECLINE IN TEXTILE EXPORTS ASKED BY SHRI
SELVAGANAPATHI T.M.
(a): India’s Exports of Textiles and Apparel including Handicrafts has shown growth of 2% during
Apr-June 2025 with respect to same period in previous year. Details are as under:
Value in USD Million
Commodity APR-JUN 2024 APR-JUN 2025 % Change
Total T&A including Handicrafts 9,141 9,326 2%
Source: DGCIS (Provisional Data)
(b) & (c): The Government of India has taken various steps in the direction of rationalization and
uniformity of GST Rates in textiles value chain. Jute fibre and Raw silk are exempt from GST. For
cotton, raw cotton is taxed at 5% under the reverse charge mechanism and cotton yarn and fabric also
have 5% GST. For jute, jute yarn, fabric and for silk, silk yarn and fabric are taxed at 5%.
Articles of apparel and clothing accessories of sale value not exceeding ₹1,000 per piece are taxed at 5%,
and articles of apparel and clothing accessories with a sale value exceeding ₹1,000 per piece are taxed at
12%.
Further, Handicrafts, Handmade Carpet, Handmade Lace and Hand-woven tapestries etc. are taxed at a
uniform rate of 5% GST.
The representations of the Industry received in this regard have been referred to the Department of
Revenue, Ministry of Finance from time to time.
(d) & (e): Under the National Programme for Organic Production (NPOP), implemented by the
Department of Commerce, the Organic cotton certification is covered till the production stage. The total
production of organic cotton under NPOP during 2024-25 was 24.96 lakh MT (including 21.92 Lakh MT
organic and 3.03 Lakh MT in conversion production). Post-production activities are carried out under
private certifications. Certification Bodies are agencies accredited by the National Accreditation Body
under NPOP for certifying organic products. Under the NPOP, appropriate action is taken wherever
deviation/violations are observed in the certification and organic processes.
*****