Ahmedabad traders get GST relief, demand for cotton clothes increases
By yash chouhan 2025-10-03 13:05:25
GST cut benefits Ahmedabad traders, cotton fabric demand up 10%
Cotton fabric traders in the city are seeing increased demand during the festive season. They attribute this to the reduction in GST on garments up to ₹2,500. Demand has increased by 10% since the central government announced the GST reduction, and orders are pouring in from across the country.
Gaurang Bhagat, president of Maskati Cloth Market Mahajan, said, "Ahmedabad is considered one of the largest cotton fabric suppliers in the country. The period from Navratri to Diwali sees huge demand, contributing to at least 30% of the country's total annual textile demand. This year, the GST reduction has led to an increase of about 10% in production."
Bhagat said that before GST 2.0, garments priced above ₹1,000 were subject to 12% GST. Now, garments up to ₹2,500 are subject to only 5% GST.
"We've also seen an increase in demand for clothing for the wedding season, which begins right after Diwali. The 18% GST on clothing priced above ₹2,500 will certainly have some impact, but we believe buyers will continue to purchase items they like during the wedding season." Mahajan officials also said that a decrease in imports from China has boosted local demand.
Mahajan Secretary Naresh Sharma said, "Ahmedabad is one of the largest centers for cotton processing. Cotton prices have remained stable, and import duties on cotton have been removed, creating better prospects for manufacturers. Although US tariffs have impacted exports, domestic demand will provide significant relief."
