Textile traders in Surat have placed a new set of demands before the state government. The demands include developing a garment hub near the south Gujarat city as well as redressal of issues related to the goods and services tax (GST). The garment hub would organise the industry and make it competitive not only within the country but also in international markets. Another point that the government needs to consider is GST. The current GST on yarn is 12 per cent. This should be reduced to 5 per cent.

The implementation of GST has badly impacted textile production in India which has plummeted from 4 crore metre per day to 2.5-3 crore. The government should remove GST on units whose turnover is below Rs 5 crore. Another hurdle the textile industry is facing is the limit on cash transactions. Currently, the limit is Rs 10,000 per day which should be at least Rs 25,000, so that traders can manage their expenses in proper manner and also get rid of unnecessary accountancy-related procedures.