Garment and Footwear Stocks Rise on GST Cut Hopes

August 28, 2025: Stocks of readymade garments and footwear have been on the rise since early morning as the market anticipates a GST reform where the applicable rate on the products might go down, along with the threshold limit for the reduced rate will be increased. As the GST Council prepares to meet next week, the market is hoping for a GST rate rationalisation.

What is Driving the Move

The GST council is scheduled to meet next week, where they will discuss the current GST rates and rules and make required amendments. It is speculated that the Group of Ministers (GoM), to meet at the council, will be proposing to reduce the current GST rate on readymade garments from 12% to 5%. It is also speculated that the threshold limit for the new 5% rate will be increased from Rs 1,000 to Rs 2,500. This means that a readymade footwear or garment that costs under Rs 2,500 will attract 5% GST.

Market Snapshot

As of 02:30 PM, in the footwear industry, Relaxo Footwears leads the rally with a 7.62% increase, trading at ₹481.80, followed by Khadim India, with an increase of 4.94% trading at ₹241.25. Bata India and Liberty shoes are also trading profitably, gaining 2.09% and 2.56% respectively. At the same time, companies in the textile industry, like Pearl Global In, Alok Industries, KPR Mill Ltd., were also trading in green, Jindal Worldwide, leading the way with a 17.99% increase, trading at 40.80.

Other Factors

The positive trend in the readymade footwear and garment industry has come after a recent decline in textile and leather counters, which occurred after the imposition of a steep 50% tariff on Indian goods entering the United States. The potential GST rate rationalisation will increase consumption, having a positive impact on the industries by lifting sentiment.

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