Ahmedabad, 2025: The Gujarat Small Scale Detergent Manufacturers Association (GSSDMA), representing over 500 members, has urged the Central Government to extend policy support and GST rationalisation to boost the detergent and soap industry in line with the vision of “Make in India” and “Atmanirbhar Bharat.”According to Mr. Naresh Jain, Chairman of the Association, “The detergent industry in India is currently valued at around INR 40,000 crore and is growing steadily at a CAGR of 7%. With India being one of the largest consumer markets globally, this sector is strategically positioned to emerge as a global manufacturing hub under the Make in India and Atmanirbhar Bharat initiatives.”At present, the industry is facing several critical challenges. High GST rates and an inverted duty structure are creating severe working capital and competitiveness issues for MSME manufacturers. Products under HSN 3401 (soaps and organic surface-active products) and HSN 3402 (detergent powders, cakes, liquids, etc.) are currently taxed at 18%. Additionally, high import duties on key raw materials such as LAB, fatty alcohols, surfactants, and packaging materials have escalated production costs. Multiple overlapping compliance requirements further add to the burden on small and medium enterprises.To address these concerns, the Association convened a meeting where Mr. Jain highlighted that reducing the GST rate from 18% to 5% could significantly expand the industry’s potential. Such a measure could help the market grow to over INR 1,00,000 crore, improve affordability, increase penetration of quality Indian-made detergents into rural markets, and enable MSME manufacturers to introduce more eco-friendly formulations. It would also create large-scale employment opportunities, especially in states like Gujarat, where over 500 MSMEs are already generating jobs for unskilled labour. Moreover, the industry’s CAGR growth could rise from the current 7% to over 10%.The Association has put forward the following key demands: reduction of GST to 5% on HSN 3401 and 3402 products, special subsidies and working capital support for MSMEs, enhanced rebates under RoDTEP/SEZ schemes to boost exports, and the introduction of a single-window clearance system to ease compliance and eliminate red tape.