Unbelievable GST Impact on Khadi, Growth Instead of Decline

The economy has slowed down due to demonetization and GST implementation. The impacts can be seen on the business of many companies, but, it didn’t affect the market of khadi. The sale of khadi has been increased to great 89% during April-September time period. On a festive occasion, when many traders were complaining about the slowdown, the sale of khadi was however proved to be quite good.

During April and September months, the sale of many khaki products like clothes has got to see the surge adequately. The total sale of Khadi during this time is recorded at Rs. 814 Crore which is higher than last year sale of Rs. 430 Crore.

During the festival season, khadi industry performed very well when it comes to sales. Although most of the businesses didn’t receive much response during this period, Khadi performed fantastically well. As per the times of India report, on October 17 in the Connaught place sale (Delhi), khadi borne items created a new record by outnumbering other products.

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Khadi touched Rs. 1.2 Crore sale which is higher than last year’s estimate of Rs. 1.11 Crore sale. In last few years, khadi has stepped up the sale and showed the positive side of it. It is expected that this time Khadi and Grameen Industry can touch the sales figure of Rs. 50 Crore. The tie-up with many companies including offers like Gift Coupon has widened the scope of the industry and increased the sale. During the April-September period, the sale of Khadi Gift Coupon also increased. Last year the figure was Rs. 85 lakh only and this year it has increased to Rs. 5.85 Crore.

Starting six months of this financial year showed a slowdown in the sale of many businesses. Even the sale has not surged on the peak of festival season as expected. GST and demonetization are considered to be the reason of this fall down. The international reports also consider that GST is the reason of economic slowdown.