GST, lack of govt support prompt exodus of Tamil Nadu's textile firms

The industry feels tax rate of 5-18% would hurt its ability to stay competitive in global market

Tamil Nadu’s textile cluster has long been the envy of its neighbours, given its potential to create jobs for both skilled and unskilled workers. But many states are now actively courting manufacturers and wooing them with the promise of incentives.

Odisha and Telangana have lined up lucrative packages for textile units making investments in their states. “In both the states, whatever we invest, we will be able to recover in four years,” says T R Vijaya Kumar, managing director of CBC Fashions and general secretary of Tamil Nadu Exporters Association. 

“The benefits are enough to help the industry compete in