India has extended the Interest Equalization Scheme (IES) for pre- and post-shipment rupee export credit by one more month, beyond August 31, 2024. The scheme, initially set to expire on June 30, 2024, was first extended for two months. According to Trade Notice No. 16/2024-2025 issued by the Directorate General of Foreign Trade (DGFT) on August 31, the extension is specifically for micro, small, and medium enterprises (MSMEs). All other terms and conditions remain unchanged. Previously, the scheme’s total outlay was capped at ₹750 crore (approximately $89.9 million), and this extension continues under the same terms. Under the scheme, banks provide loans to exporters at a reduced interest rate, and the government compensates the lenders for the difference. Exporters have also called for an increase in the subvention rates from 3 per cent to 5 per cent due to a sharp rise in repo rates over the past two years.
Source: Fibre2fashion
An analysis from B&K Securities predicts that the Indian textile industry will undergo changes in 2024 as a result of good geopolitical situations, strong consumer expenditure in important industries, and increasing demand in export markets.In 2024, there will likely be a significant improvement in the demand for ready-made garments (RMG) in export markets. Because of overstocking from the previous fiscal year and decreased discretionary expenditure, domestic demand is predicted to stay modest, while export demand is showing signs of strength. The second half of FY ’25 may see a little increase in realisations, although the domestic market could benefit from an increase in wedding days and the festive season. variables, including restocking by Western retailers, rising demand for spring-summer collections, and an overall uptick in retail sales, are anticipated to propel RMG’s export growth. The US’s projected interest rate reduction will boost demand even further. Stable cotton pricing and continuous supply will also help India’s RMG exports by improving cost competitiveness internationally. For a limited time, Indian exporters are helped by the current turmoil in Bangladesh, a significant player in the global RMG market. The advantages for India, however, should only last temporarily because of Bangladesh’s trade agreements with the European Union and variations in product portfolios. With global consumers continuing to diversify their supply chains away from China and Bangladesh, India may see more significant gains over the medium to long term. This is especially true given that Bangladesh is facing issues including growing salaries and losing its Least Developed Country (LDC) designation by 2029.
Because the United States, which accounts for around 60% of India’s home textile exports, has solid consumer spending, the home textiles market is expected to maintain its upward trend. The adoption of the China+1 strategy by big box retailers to diversify their supply chains has contributed to the steady increase in the market share of Indian firms in the US.India will probably continue to dominate the US home textile market thanks to its lower cost of raw materials and growing local capacity. Increased growth prospects are provided by the Free Trade Agreement (FTA) negotiations with the UK and the EU, which could result in higher profits and a larger market share for Indian companies. Even though the business is doing well, it nevertheless confronts short-term difficulties including the Red Sea crisis’ logistical ramifications and low domestic cotton prices. Furthermore, in order for Indian textile industries to be competitive, they will need to make investments in conformity with these changing standards as sustainability becomes a significant subject in Western markets. An analysis from B&K Securities predicts that the Indian textile industry will undergo changes in 2024 as a result of good geopolitical situations, strong consumer expenditure in important industries, and increasing demand in export markets. In 2024, there will likely be a significant improvement in the demand for ready-made garments (RMG) in export markets. Because of overstocking from the previous fiscal year and decreased discretionary expenditure, domestic demand is predicted to stay modest, while export demand is showing signs of strength. The second half of FY ’25 may see a little increase in realisations, although the domestic market could benefit from an increase in wedding days and the festive season. A number of variables, including restocking by Western retailers, rising demand for spring-summer collections, and an overall uptick in retail sales, are anticipated to propel RMG’s export growth.
The US’s projected interest rate reduction will boost demand even further. Stable cotton pricing and continuous supply will also help India’s RMG exports by improving cost competitiveness internationally. For a limited time, Indian exporters are helped by the current turmoil in Bangladesh, a significant player in the global RMG market. The advantages for India, however, should only last temporarily because of Bangladesh’s trade agreements with the European Union and variations in product portfolios. With global consumers continuing to diversify their supply chains away from China and Bangladesh, India may see more significant gains over the medium to long term. This is especially true given that Bangladesh is facing issues including growing salaries and losing its Least Developed Country (LDC) designation by 2029. Because the United States, which accounts for around 60% of India’s home textile exports, has solid consumer spending, the home textiles market is expected to maintain its upward trend. The adoption of the China+1 strategy by big box retailers to diversify their supply chains has contributed to the steady increase in the market share of Indian firms in the US. India will probably continue to dominate the US home textile market thanks to its lower cost of raw materials and growing local capacity. Increased growth prospects are provided by the Free Trade Agreement (FTA) negotiations with the UK and the EU, which could result in higher profits and a larger market share for Indian companies. Even though the business is doing well, it nevertheless confronts short-term difficulties including the Red Sea crisis’ logistical ramifications and low domestic cotton prices. Furthermore, in order for Indian textile industries to be competitive, they will need to make investments in conformity with these changing standards as sustainability becomes a significant subject in Western markets.
Source: Apparel Resource
The textile industry stands at a pivotal moment, grappling with a surge in sustainability mandates from global markets like the European Union, alongside evolving national regulations. Responding to this challenge, the Confederation of Indian Textile Industry (CITI) has launched its first-ever Management Development Programme on Environmental, Social, and Governance (MDP-ESG). This initiative aims to equip industry managers with the knowledge and tools necessary to navigate the complex landscape of ESG compliance. Held at the Bombay Textile Research Association (BTRA) in Mumbai, the three-day programme became a nexus for dynamic discussions, innovative ideas, and strategic insights. Industry leaders, academics, and experts came together to dissect the pressing ESG challenges facing the textile sector, covering topics from sustainability reporting to circular economy practices. The programme commenced with an opening address by CITI’s Secretary General, Ms Chandrima Chatterjee, setting the stage for an event that promises to shape the future of the industry. Her sentiments were echoed by other prominent figures, including Shri Sunil Patwari, Chairman of TEXPROCIL, and Dr Siddhartha Rajagopalan, Executive Director of TEXPROCIL, who offered their perspectives on how the industry can adapt to these new sustainability demands. The heart of the programme lay in its technical sessions, which delved into the complexities of ESG integration. On the first day, participants explored environmental sustainability under the guidance of experts such as Ms Bharti Birla from the International Labour Organisation (ILO) and representatives from RRMA and IIM Mumbai. These sessions tackled crucial issues including sustainable water management, chemical compliance, and life cycle assessment, providing attendees with a comprehensive understanding of how to minimise the industry’s environmental footprint.
Day two featured advanced discussions led by Mukesh Garg from Monash University, who compared ESG practices between India and Australia. Sessions on Extended Producer Responsibility (EPR) and sustainability governance underscored the growing importance of designing products with their entire lifecycle in mind—a requirement set to become mandatory in the EU by 2025. The final day focused on human rights and international standards, with experts from Partners in Change, Pradeep Narayanan and Jhumki Dutta, leading sessions on the National Guidelines on Responsible Business Conduct (NGRBC) and Business Responsibility and Sustainability Reporting (BRSR). Participants engaged in hands-on group activities, mapping factory environments and assessing social risks, highlighting the critical need for a thorough integration of human rights into industry practices.
Source: Outlook Business
The Indian textile industry is set for growth in 2024, driven by rising export demand, stab cotton prices, and geopolitical conditions. Increased consumer spending in key sectors a potential Free Trade Agreements with the UK and EU also contribute to this positive outl However, logistical challenges and sustainability norms pose near-term hurdles. New Delhi: The Indian textile industry is set to experience developments in 2024, driven by improving demand in export markets, resilient consumer spending in key sectors, and favourable geopolitical conditions, according to the B&K Securities report. In the ready-made garments (RMG) sector, the demand offtake in export markets is anticipated to show substantial improvement in 2024. While domestic demand is expected to remain moderate due to lower discretionary spending and overstocking from the previous fiscal year, the recovery in export demand is promising. The domestic market could see a boost in the second half of FY25, supported by an increase in wedding days and festive season, although the rise in realisations is likely to be marginal. The export growth in RMG is expected to be driven by a combination of factors including restocking byWestern retailers, increased demand for spring-summer collections, and a general uptick in retail sales. The anticipated interest rate cuts in the US will further stimulate demand. India's RMG exports will also benefit from stable cotton prices and uninterrupted supply, enhancing cost competitiveness on the global stage. The ongoing crisis in Bangladesh, a major player in the global RMG market, presents a temporary tailwind for Indian exporters. However, the benefits for India are expected to be short-lived due to differences in product portfolios and Bangladesh's trade agreements with the European Union. Over the medium to long term, India could see more substantial gains as global buyers continue to diversify their supply chains away from China and Bangladesh, particularly as Bangladesh faces challenges such as rising wages and the loss of its Least Developed Country (LDC) status by 2029. The home textiles segment is poised to continue its growth trajectory, primarily driven by robust consumer spending in the United States, which accounts for approximately 60 per cent of India's home textile exports. The market share of Indian players in the US has been steadily increasing, supported by the China+1 strategy adopted by big box retailers to diversify their supply chains. India's competitive advantage in raw material costs and increased domestic capacity will likely sustain its dominance in the US home textiles market. The Free Trade Agreement (FTA) negotiations with the UK and the European Union offer additional opportunities for growth, potentially leading to higher margins and increased market share for Indian players. While the industry is on a positive trajectory, it faces near-term challenges such as logistical disruptions due to the Red Sea crisis and uncompetitive domestic cotton prices. Moreover, as sustainability becomes a major theme in Western markets, Indian textile companies will need to invest in compliance with these evolving norms to remain competitive.
Source: Economic Times
Rural Development and Panchayat Raj Minister and Kalaburagi district in-charge Priyank Kharge has said that the proposed Textiles Park coming up on 1,000 acres of land in Kalaburagi will generate one lakh direct jobs and two lakh indirect jobs. In a meeting with Kalaburagi Deputy Commissioner Fouzia Taranum and other senior officers at his office in Vidhana Soudha in Bengaluru on September 3, the Minister said that the government of Karnataka had already allocated ₹50 crores in the current year’s budget for the purpose. The Minister directed the officials to explore options to supply at least 16 million litres per day (MLD) water that the textile park would require, including the options of getting water from the proposed barrage to be built at Madri village, rejuvenating the tank in the proposed textile park premises, and putting a rainwater harvesting mechanism in place. After looking into the proposals submitted by the Public Works Department (PWD) to develop roads to connect the textile park, the Minister asked the officers concerned to ensure that the roads would last long. When the officers said that, as per the suggestion made by the Karnataka Power Transmission Corporation Limited (KPTCL), a space for establishing a 220 KV power sub-station within the proposed textile park was identified, Mr. Priyank suggested taking constructive measures to harvest solar energy as well such as solar streetlamps. Vipul Bansal, the Secretary of Commerce and Industries (Textile), KPTCL Managing Director Pankaj Kumar Pandey, Textile Development Commissioner K Jyothi and other senior officers were present.
Source: The Hind
While the local textile industry was worried about the strike announced by more than 20,000 dockworkers in Indian ports, the unions finally postponed the industrial action following an initial meeting with the government, against a backdrop of revised wages and allowances. "The indefinite national strike called by six federations of port workers and dockers from August 28 has been postponed following a memorandum of understanding between the President of the IPA (Indian Ports Association), the Director General of the IPA and representatives of the six federations," said a press release from the unions concerned.
The threat to the activity of a dozen Indian ports followed the planned reform of the pay structure for workers, as well as changes to their pensions. The social partners are said to have finally agreed on changes to the statutes, and even laid the foundations for a future revision on January 1, 2027. The tension in the Indian ports was being closely monitored by the textile and clothing industry, both locally and internationally. The Indian industry is going through a period of reflection, with textile and clothing exports growing by just 4.6% in ten years, compared with explosive growth for some of its Asian competitors. And the difficulties encountered upstream in the industry have even recently prompted the government to call on manufacturers to turn to local rather than imported materials.
Added to the prospect of strike-induced delays was the fear of a further rise in freight prices. In the first half of the year, difficulties in accessing the Suez and Panama canals caused transport costs to soar between Asia on the one hand, and Europe and the US East Coast on the other.
India is a key supplier of textiles and clothing to the West. Last year, the country was the European Union's fourth-largest supplier of clothing, with goods worth €4.03 billion, down 13%. But its biggest customer remains the United States, for which India is also the fourth-largest supplier, with 4.5 billion dollars, after a fall of 21.4% over one year.
Source: Fashion Network
Bangladesh has been missing out on a potential export business of recycled textile products worth $4-5bn per year due to a lack of a comprehensive policy framework on circular textiles which new research states could incentivise the “highly informal” post-industrial textile waste (Jhut) economy and trade.
The study titled “Regulatory Framework to Enable Recycling of Post-Industrial Waste (Jhut) for the RMG Industry in Bangladesh” was jointly conducted by the Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Swedish retailer H&M under the programme for Sustainability in the Textile and Leather Sector. The study states the recycling industry in Bangladesh faces several key challenges, including sorting Jhut, timely disposal, boosting productivity, and minimising waste through improved design. Bangladesh’s current recycling capacity for apparel-grade recycled yarns ranged from 18,000 to 24,000 tonnes annually, according to the findings. This only represents a modest 5 – 7% of the expansive 330,000 – 500,000 tonnes of 100% cotton and cotton-elastane waste produced every year. Less than 5% of waste is upcycled, with over 55% exported to recycling companies, remaining waste is downcycled, incinerated, and landfilled.
Source: Just Style
The Turkish manufacturing sector witnessed subdued demand conditions midway through the third quarter (Q3) of the year, according to Istanbul Chamber of Industry purchasing managers’ index (PMI) data.
The headline PMI posted 47.8 in August, up from 47.2 in July but still signalling a moderation in the health of the sector during the month. Although new orders softened to a lesser extent than in July, the pace of moderation was still solid and led firms to scale back output, employment and purchasing activity, S&P Global, which compiled the data, said in a release. Moreover, stocks of inputs were reduced to the largest degree in just over a year. Meanwhile, input costs continued to rise sharply in August and manufacturers increased their output prices at a faster pace than in July this year. Business conditions have softened continuously since April. Challenging market conditions led to a further softening of new orders in August, the fourteenth in as many months. The rate of moderation was solid, despite easing to the weakest since May. New export orders returned to growth for the first time since June 2023. With overall demand conditions remaining subdued, firms scaled back their production, employment and purchasing activity in August. Price pressures exacerbated the slowdown in production, which was the most pronounced since November 2022. Input costs continued to rise at a marked pace, albeit one that was slightly softer than in July. Currency weakness was the principal factor leading to higher input prices, while there were also reports of increases in costs for raw materials and logistics. In response to higher input costs, manufacturers raised their own selling prices. Moreover, the rate of inflation quickened for the second month running to the fastest since April.
Manufacturers displayed a reluctance to hold inventories at a time of subdued new orders, reducing their holdings of both purchases and finished goods during August. The drop-in stocks of purchases was the strongest since July 2023.
Source: Fibre2Fashion
Many textile companies have secured orders to last until the end of 2024 and are already negotiating deals for the start of next year, according to the Vietnam Textile and Apparel Association (VITAS).
The main export markets for Vietnam’s textiles, including the U.S., Japan, South Korea, and China, have shown positive growth. In July, textile export turnover reached US$3.72 billion, marking a 17.6% increase from the previous month. From January to July, Vietnam’s textile export turnover totaled approximately $20.3 billion, up 6.3% year-on-year, according to Vietnam Customs data. TNG Investment and Trading JSC, which produces for brands like Decathlon and Asmara, reported a second-quarter revenue of VND2.174 trillion ($87.4 million) and a post-tax profit of VND86 billion, up 8.8% and 57.1% year-on-year. The surge in orders for TNG is partly driven by heightened demand ahead of the Paris Olympics, with the company securing enough orders to last through the year and currently negotiating for next year’s contracts, according to SSI Securities. VITAS forecasts continued strong performance for textile exports, traditionally bolstered by increased demand in the final months of the year. In the U.S., one of Vietnam’s major textile markets, the value of textile product inventories in the first half of the year was $2.172 trillion, down 2.4% year-on-year. Despite this, sales rose by 1.2%. Over the last seven months, the U.S. imported $8.93 billion worth of Vietnamese textiles, a 5.5% increase from the same period last year. The instability in Bangladesh has potentially led to the closure of some factories, prompting global clients to seek alternatives in countries like Vietnam, according to SSI Securities. However, despite the positive trend in orders, the industry’s profit margins remain under pressure due to rising labor costs.The minimum wage in Vietnam increased by 6% in July, posing a challenge for many companies. Among the 30 textile firms listed on two stock exchanges, only about half reported profit growth in the second quarter.
Source: VN Express
Trützschler ’s next-generation carding machine entered the market in January 2024 and have achieved successful results during tests with customers in Türkiye and in other countries. It achieved up to 40 % higher productivity while reducing energy consumption by up to 18 %. In 2022, Mayfil Tekstil, one of the leading companies in the Turkish textile industry for the production of textured yarn, invested in a modern vortex airjet spinning facility that can produce up to 35 tons per day. The company founded in 2005 and headquartered in Nilüfer/Bursa, was keen to take a close look at the TC 30i for man-made fibers to explore its potential to drive progress toward Mayfil’s growth plans. In February 2024, Mayfil Tekstil conducted tests with the TC 30i. The next-generation carding machine produced 140 kg/h viscose, which is more than 40 % higher than the 95 kg/h Mayfil produces with the current benchmark. The new carding machine also decreased electricity consumption by 18 %. Based on these results, the company is purchasing further TC 30i cards. Göl İplik Şeremet Tekstil Sanayi ve Ticaret A.S., located in Inegöl Bursa, operates three factories that deliver a variety of high-quality products, with a specialization in blended yarns. Investment in modern equipment and pioneering new products that expand its portfolio are at the heart of Göl Iplik’s success across almost four decades. Göl Iplik also tested the TC 30i for man-made fibers in early 2024. This Trützschler customer took a close look at the TC 30i during rigorous viscose trials. The TC 30i achieved a 40 % higher productivity rate with the same level of quality, while consuming 15 % less power. Göl Iplik now intends to include the TC 30i in its future investment strategy. TC 30i has made a strong entry into the market
Although the TC 30i is still a newcomer in the textile industry, its reputation is growing rapidly as spinning companies around the globe experience its range of smart features and functions. Trützschler stated that more and more companies around the world are now ordering the TC 30i.
The benefits of the TC 30i are as follows:
Source: Textile Gence
Eleven major associations representing the global sewn products, textiles, apparel, and nonwoven industries have launched the "Alphabet Soup Collective," to enhance collaboration and bridge gaps across the supply chain.The Alphabet Soup Collective’s first meeting coincided with the 2024 Techtextil North America trade show. The group’s goal is to pool expertise and provide better support through shared knowledge, resources, and events.
The collective also plans to streamline industry event scheduling and improve networking and educational opportunities for members.
The Alphabet Soup Collective has launched with 11 industry associations:
Harrie Schoots, an industry expert and one of the key leaders of the Alphabet Soup Collective said: “Representing thousands of members, our associations must find ways to work together and strengthen our collective presence as we face global challenges. We speak similar languages in our industry, and we are excited to involve our members in this effort to broaden our perspectives, understand each other’s issues and ensure the greatest value for everyone. I’m looking forward to the new heights we will reach together.” The inaugural event concluded with a networking reception which drew over 280 industry professionals from around the world. Graham Page co-founder at iAtelier Corporation and principal at AlchemyX LLC attended the Alphabet Soup Collective event and commented: “Where else can you connect with the entire industry from start to finish, from fibre to retail? The energy was palpable. This sort of thinking is exactly what is needed in these difficult times in our broader industry. Innovation happens when you mix people and ideas to address big challenges.”
Source: Just Style
