India’s Tax Hike on Clothing Poses Challenge for Global Fashion Brands
In September 2025, India introduced a significant change to its Goods and Services Tax (GST) on clothing. The new policy increased the tax rate on apparel priced above ₹2,500 from 12% to 18%. This adjustment has raised concerns among global fashion brands like Zara, H&M, and Levi’s, which cater to India’s growing middle-class consumers.
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