Wedding Season Boosts Garment Demand Despite GST Hike, ETCFO
Indore: The peak wedding season has brought cheer to Indore’s homegrown garment manufacturers, with production units recording advance enquiries and orders. However, the spike in GST on apparels priced above Rs 2,500 is seen as keeping a lid on the upside.
With a high number of marriages lined up in Nov and Dec this year, manufacturers expect business to grow by at least 10 per cent compared to the previous season. Production units are reporting more enquiries and early orders, especially for ethnic and occasion wear. Wholesalers from Rajasthan, Uttar Pradesh, Maharashtra, Gujarat, and several southern states have already started placing bulk bookings, indicating a strong season ahead.
Readymade Textile Dealers Association president Ashish Nigam said, “We have high hopes for the wedding season and are anticipating at least 10 per cent higher business than the previous season. Given the pace of enquiries, we expect bulk advance orders to start by next week. Business could have gained even more, but the GST hike will directly impact the common man and their purchases.”
The wedding period is the most important time for the garment business and contributes almost 30 to 40 per cent of annual sales. Manufacturers added that while orders are rising, the recent increase in GST on apparels priced above Rs 2,500, from 12 per cent to 18 per cent, may limit growth. Buyers in the mid-premium segment are becoming cautious and are shifting their choices to avoid higher tax slabs.
A local manufacturer, Rajesh Soni said, “Customers are already adjusting their budgets. Demand is strong, especially for lehengas, kurtas, and kids’ ethnic sets. But many customers are asking for options below Rs 2,500 to avoid higher GST. This affects our pricing and design decisions in the most important season.”
A recent report by the Confederation of All India Traders (CAIT) estimated wedding spending of Rs 6.5 lakh crore in India between Nov 1 and Dec 14. CAIT national president B C Bhartia said Madhya Pradesh will be among the top contributors, with wedding-related business expected to cross Rs 40,000 crore, led by Indore, Bhopal, Gwalior, Satna, and Katni.>
