The body says that if the domestic sector is also hit by such an unprecedented price increase in large product categories, it will spell the death knell for the industry
Noting that there are continuous reports that garments above Rs 2,500 are likely to be taxed at 18 per cent from their current level of 12 per cent, the Clothing Manufacturers Association of India (CMAI) has warned that such a move will mean a cruel blow to the aspiring middle-class and the organised sector of garment manufacturers, who are the worst affected by the tariff wars.
The association highlighted that there are sections of the Industry which manufacture products which are more expensive not because they are consumed by the affluent class, but because of the very nature of the cost of raw materials and artistic handwork involved.
“The Industry is already in the midst of an unprecedented crisis with the US tariff wars. At this time, the need of the hour is a strong, resilient, and vibrant domestic Sector. If the domestic sector is also hit by such an unprecedented price increase in large product categories, it will spell the death knell for the industry,” CMAI added.
Sharing one such insight, the industry body noted that almost the entire range of woollen garments, which are essential clothing for the middle-class in the entire north, northeast, and east India, are currently priced between Rs 3,500 to Rs 7,000. Putting such Garments in the 18 per cent slab will mean asking middle-class Indians not to wear woolen clothes during the bitterly cold winters.
