Bhilwara in Rajasthan produces almost 45 per cent of the total yarn manufactured in India. With GST the entire system had to be computerized and price of goods went up 20 per cent leading to massive losses. More than 20,000 people are employed in the Rs 700 crore industry in Bhilwara, considered to be one of the textile hubs of India. Traders want minimal GST for all raw clothing categories including textiles, polyester yarn, wool and other materials. Further, textile traders have also sought tax sops for entities engaged in the business for more than 20 years.

Power supply is a major issue and no subsidies are available. Several stores in the textile market of Bhilwara have downed shutters. Many businessmen could not sustain in the textile industry and have now shifted to industries like marbles and granite. Most shops in the erstwhile textile market belong to finance companies and broking houses. Looking at the opportunity presented during the post-GST slowdown, dozens of alternate financing firms have opened up in Bhilwara.

The decline started with demonetisation in November 2016, which reduced purchasing power for a few months. It left thousands jobless for a while. The industry had barely recovered from the shock of demonetisation when GST was introduced, slowing growth further.