Union Minister of Textiles Giriraj Singh has welcomed the GST Council’s decision to reduce the Goods and Services Tax (GST) on man-made fibers and yarns. On his social media post, he thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the move, underlining that this step reflects the government’s long-term agenda of strengthening India’s manufacturing and export competitiveness.

The new tax structure lowers GST on man-made fibers from 18% to 5% and reduces the rate on yarns from around 12%. Industry players believe this step will help cut production costs, make Indian textiles more competitive globally, and support the growing man-made fiber (MMF) segment, which already contributes heavily to India’s textile growth. The decision is not just an economic measure but also part of PM Modi’s broader strategy to position textiles as a core pillar of the “Make in India” and “Atmanirbhar Bharat” initiatives.

From a strategic standpoint, the GST cut can be seen as part of PM Modi’s push to integrate Indian manufacturing into global value chains. As global buyers increasingly shift towards man-made Fibers, this reform aligns India with global consumption patterns and helps the country compete with textile giants such as China and Vietnam. The step reflects a deeper agenda, to not only support domestic producers but also to make India a leading global hub for MMF-based textiles in the coming decade.