28% GST would devastate domestic manufacturing, make Indian textiles uncompetitive globally, shift demand to imports from Bangladesh and China: Dr. Sushil Gupta

Senior Aam Aadmi Party leader and former Rajya Sabha MP Dr. Sushil Gupta has strongly criticized the BJP-led central government for its policies that have pushed the textile industry into crisis, impacting small traders, exporters, and the livelihoods of millions of workers.

In a statement, Dr. Sushil Gupta said, “The BJP has ruined every industry in the country, and now they have set their sights on the textile industry, which is a backbone of our economy and a provider of basic necessities for all. By imposing higher taxes on the textile sector, the government is unfairly burdening the common people while crippling the industry.”

Dr. Gupta highlighted how the GST on textiles was initially kept at 5% after detailed deliberations to support the industry. However, during the COVID-19 pandemic, when people had no income, and businesses were already struggling, the BJP government raised the GST on textiles to 12%. “This decision broke the back of small traders who were already on the edge. Many were forced to shut their businesses and take up menial jobs to survive,” he added.

The proposed increase of GST on textiles to 28% has further alarmed the industry. Dr. Gupta warned that such a move would devastate domestic manufacturing, make Indian textiles uncompetitive globally, and shift demand to imports from Bangladesh and China.

“The impact of BJP’s policies has been catastrophic. Small traders, who barely earned enough to support their families, had to close shop. Large exporters saw their global orders dry up as buyers shifted to competitors in Bangladesh and China. Domestic manufacturing declined sharply, forcing many employers to lay off workers,” he added.

“Despite destroying businesses and robbing people of their jobs, Prime Minister Modi still isn’t satisfied. The proposed 28% GST hike on textiles will completely decimate the industry,” he said.

Dr. Gupta urged the government to focus on strengthening the textile industry by reducing taxes, incentivizing domestic production, and creating jobs. “Instead of empowering our traders to produce in bulk, increase exports, and provide affordable clothing to citizens, the BJP government is planning policies that benefit China and Bangladesh at the expense of our own economy.”

He further noted that over the past decade, nearly 2 million Indians, including 30,000 high-net-worth individuals, have left the country due to the challenges of doing business in India. “We must create an economy that attracts our talent back, not one that forces them to leave,” he stated.

Dr. Gupta reiterated AAP’s commitment to creating an inclusive, growth-oriented economy that empowers small businesses, promotes domestic manufacturing, and generates employment. “Why is Prime Minister Modi breaking the back of Indian traders and handing over our business to Bangladesh and China?” he concluded, calling on the central government to rethink its policies and support India’s traders and workers.