The Micro, Small and Medium Enterprises (MSME) minister, Kalraj Mishra is hopeful that khadi products would be exempted from GST which came into effect from July 1. Various khadi and village industries products attract different rates of GST ranging from 5 to 12 per cent. Addressing a meeting of khadi institutions, Mishra said for the larger interest of weavers and spinners associated with the khadi industry, the GST panel had started analysing the pros and cons of the new tax on various products. He disclosed that the finance minister had promised he would give GST exemption to ensure financial development of the economically backward lot of weavers and spinners.

Expressing concern over decreasing number of artisans in the khadi sector, the Singh said all round development of the sector would remain a mirage if there was no provision for sustainable economic growth of artisans; and added that no one knows the reason that how the number of artisans fell from 11 lakh in 1950 to nearly 2 lakh at present.