The Federation of Surat Textile Traders Association (FOSTTA) claims that after the rollout of the new tax structure, over 4 lakh jobs have been lost with many of the textile units in the city running far below their installed capacity.
FOSTTA claims that daily production has declined from 4 crore metres a day to 2.5 crore metres. Moreover, the past 18 months have seen sales slump by about 30-40 % and payments getting delayed.
The city’s textile industry provides employment to about 1.3 million workers. After demonetisation and GST, about 30-35% workers have lost their jobs while the rest have seen erosion of their wages.