GST and Trade Competitiveness: A Statistical Study of Textile Exports Post-2017

Abstract

The implementation of GST in 2017 was expected to make India’s taxation system simpler and competitive for certain export sectors, including textiles. This paper studies the impact of GST on textile and apparel export in India with secondary data from 2016 to 2023. Descriptive statistics, trend analysis, and hypothesis testing show a mild increase in overall textile exports post-GST, but the change is not statistically significant. More importantly, the evidence uncovers uneven sectoral impacts: while textile exports stayed on a path of positive growth, apparel exports declined due to structural bottlenecks, delays in refunds, and severe competition internationally. The results give indication that the benefits of GST have been partially realized but restricted by transition-related friction. The paper concludes with a set of recommendations contributed toward refund systems, support for apparel units, promotion of technical textiles, and trade competitiveness.