Shares in the textile industry have been steadily rising in recent months as a result of different governmental measures and expectations of a bright future for the industry. In addition, the GST council's recent decision to postpone a rate hike on textiles has boosted investor confidence.
At the most recent GST council meeting, it was unanimously resolved to postpone a rate hike on textiles from 5% to 12%, which was set to take effect on January 1. The issue will be revisited at the next council meeting. The postponement came as numerous states said that higher textile tax rates would be put on hold.
The Council's decision offered the industry some relief. As a result, the stock prices of several textile companies soared. Bhilwara Spinners, Nitin Spinners, and Nahar Spinning Mills have all achieved significant gains to far. Over the past year, Bhilwara Spinners, Nitin Spinners, and Nahar Spinning Mills' stock prices have risen 252 percent, 316 percent, and 711 percent, respectively.
Notably, the textile stocks rallied in part as a result of the Centre's production-linked incentive (PLI) schemes in major manufacturing sectors, which included the textiles sector.