The textile industry is the second largest industry in India. India is the largest jute producer in the world and the second producer of cotton and silk worldwide. The evolution of the textile industry has been phenomenal. From being a country that produced to take care of domestic requirements, the sector has grown manifold to become the second largest producer in the world.

Textile structures in technical applications are creating new market potential. The growth and success of Indian textile industries lie in the vertical integration of policies and framework which have helped manufacturers in domestically subjugating the entire process which also bears an impact on the overall cost like raw material treatment, captive power generation etc. This has also led to in-house production of cotton, jute etc.

Natural fibers like cotton, wool, which are currently exempt from tax, are taxed under GST. For example, it is levied at five per cent for cotton and 18 per cent for synthetics, while silk and jute are exempt. Despite this, the textile industry as a whole would benefit from GST. With the advent of GST, various fringe taxes like octroi, entry tax, luxury tax etc, are subsumed. This helps reduce costs for manufacturers.