This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 1505, addressed to the Minister of Textiles on July 29, 2025, concerning the impact of the Goods and Services Tax (GST) on Small and Medium Textile Enterprises (SMEs) in Tiruppur, measures to restrict textile imports from Bangladesh, and a request to expand the Production Linked Incentive (PLI) scheme to include cotton knitwear.
The Ministry of Textiles has not conducted a specific analysis on the impact of GST on Tiruppur's SMEs. However, the government has implemented several measures to protect the domestic textile industry and ensure a level playing field regarding imports from Bangladesh. The Directorate General of Foreign Trade (DGFT) issued a notification on May 17, 2025, restricting the import of certain commodities, including Ready-Made Garments (RMG), from Bangladesh to the Nhava Sheva and Kolkata Seaports. A subsequent DGFT notification on June 27, 2025, (corrigendum dated July 17, 2025) further restricted the import of certain jute products, limiting entry to the Nhava Sheva Seaport. The Department of Revenue (DoR) imposed an Anti-Dumping Duty (ADD) on Jute Goods originating in or exported from Bangladesh and Nepal via Notification No. 33/2022-Customs (ADD) dated December 30, 2022, to protect domestic producers from unfair trade practices. India has also signed 15 Free Trade Agreements (FTAs) and 6 Preferential Trade Agreements (PTAs) to reduce tariff and non-tariff barriers and improve the competitiveness of Indian exporters.
Regarding the request from garment units in Tiruppur, Tamil Nadu, to expand the current PLI scheme to include cotton knitwear, the response indicates that the existing PLI scheme for textiles focuses on promoting the production of Man-Made Fiber (MMF) apparel, MMF fabrics, and technical textiles. Cotton items are not covered under the current PLI scheme.
Key Entities Referenced
GST: Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.
Tiruppur: A city in Tamil Nadu, known for its textile industry, particularly knitwear.
Bangladeshi textile: Textile products imported from Bangladesh.
Tiruppur district of Tamil Nadu: A district in Tamil Nadu where garment units requested expansion of the PLI scheme.
Production Linked Incentive PLI scheme: A government scheme to promote domestic manufacturing and exports; specifically, the PLI scheme for Textiles aims to promote the production of MMF Apparel, MMF Fabrics and Products of Technical Textiles.
SHRI GIRIRAJ SINGH: The Minister of Textiles.
Nhava Sheva: A seaport in Maharashtra, used as a port of entry for certain goods from Bangladesh.
Kolkata Seaport: A seaport in West Bengal, used as a port of entry for certain goods from Bangladesh.
LOK SABHA
UNSTARRED QUESTION NO. 1505
TO BE ANSWERED ON 29.07.2025
IMPACT OF GST ON TIRUPPUR SME
1505. SHRI S JAGATHRATCHAKAN:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Government has conducted any analysis on the impact of GST on Tiruppur’s Small and
Medium Textile Enterprises, if so, the details thereof;
(b) the measures that are being considered to reduce/restrict the import of Bangladeshi textile import into
our country along with the measures taken to resolve the tariff parity issues with them so as to benefit
our textile exports;
(c) whether the Government has received representation from the Garment units in Tiruppur district of
Tamil Nadu for expanding the current Production Linked Incentive (PLI) scheme to include Cotton
knitwear; and
(d) if so, the current status of the said representation?
उत्तर
ANSWER
वस्त्र मंत्री (श्री गिररराज स हं )
MINISTER OF TEXTILES
(SHRI GIRIRAJ SINGH)
(a) & (b): The Ministry of Textile has not conducted any analysis on the impact of GST on
Tirupur’s Small and Medium Textile Enterprises. Further, Government has taken following initiatives to
protect the domestic textile industry and to ensure level playing field particularly against import from
Bangladesh :-
DGFT, through notification dated 17-05-2025, has imposed port restriction on import of certain
commodities from Bangladesh including all RMG and import is only allowed through Nhava Sheva and
Kolkata Seaport. DGFT, through notification dated 27-06-2025 (& corrigendum dated 17-07-2025)
has further imposed the port restriction on certain Jute products and import of these products is only
allowed through Nhava Sheva Seaport. DoR, through Notification No. 33/2022-Customs ( ADD) dated
30.12.2022, had imposed Anti Dumping Duty on Jute Goods comprising Jute Yarn/Twine (multiple
folded/cabled and single), Hessian fabric, Jute Sacking Bags and Jute Sacking Cloth originating in or
exported from Bangladesh and Nepal (mill-wise) to ensure fair trade opportunities to the Indian
Domestic producers from the injury of dumping of those products.
India has signed 15 Free Trade Agreements (FTAs) & 6 Preferential Trade Agreements (PTAs).
These FTAs aim to reduce tariff and non tariff barriers, simplify procedures and address structural issues
to make Indian Exporters more competitive in partner markets.
(c) & (d): The Government is implementing the Production Linked Incentive (PLI) Scheme for
Textiles to promote the production of MMF Apparel, MMF Fabrics and Products of Technical Textiles
in the country to enable Textile sector to achieve size and scale and to become competitive. The items of
Cotton are not covered under current PLI scheme.
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