Denim industry says 30-40% of operative capacity shut

With annual sale of Rs 15,000 crore, this industry employs around 400,000 workers directly, besides the indirect spinoff

The Rs 15,000-crore denim industry says 30-40 per cent of its operating capacity has been shut since the goods and services tax (GST) was implemented, due to weak domestic demand and reduced potential for export.

The government has levied 12 per cent GST on branded garments beyond the maximum retail price of Rs 1,000 and five per cent below this threshold. Denim demand from local consumers and importers has fallen, with manufacturers either having to shut down or operate at reduced capacity.

“Since the GST implementation from July 1, the denim industry has temporarily closed down 30-40 per cent of its operating