The textile and apparel (T&A) sector remains central to India's economy, contributing significantly to the Gross Domestic Product (2.3%), industrial production (13%), and exports (12%). It directly employs around 45 million people, providing livelihoods across rural and urban areas, and creates jobs for unskilled, semi-skilled, and female workers. However, despite this potential, India's T&A sector accounted for only 4.8% of global exports in 2023. The country's strength lies in its raw materials, particularly cotton, where it holds 14% of global exports. As it prepares for the future, India’s T&A industry will need to penetrate the growing Man-Made Fibre (MMF) segment, which now accounts for approximately half of global apparel trade and will continue to grow.
The global apparel industry is extremely competitive and characterised by low margins. Buyers frequently switch suppliers to secure better prices, creating a high-pressure environment for manufacturers. This dynamic is particularly challenging for Indian firms, most of which are relatively small compared to their counterparts in Bangladesh and Vietnam, where firms tend to be larger and more consolidated. India in general finds it difficult to compete on costs with these countries, which then drives a need to develop competitive advantages based on other factors, such as quality, innovation, or sustainability. Market access further handicaps Indian exporters. Bangladesh, for instance, enjoys preferential trade agreements like the European Union (EU)’s Everything But Arms (EBA) initiative, which provides duty-free access to the European market, allowing it to dominate in certain apparel categories. Similarly, Vietnam benefits from the EU-Vietnam Free Trade Agreement (EVFTA). In contrast, Indian exports to the EU face import tariffs of 9.6%, creating a significant price disadvantage in the world’s largest apparel market. As a result, market shares for Bangladesh and Vietnam market in global apparel exports stand at 10% and 7%, respectively, versus only 3.5% for India, as of 2022. (Contrary to some perceptions, Bangladesh will remain a rising power in apparel production: its current problems are temporary.) India's historical reliance on cotton production has further limited its ability to adapt to changing global trends. Cotton-based products remain India's core strength, but global apparel demand is shifting increasingly towards MMF, driven by markets like the United States, where items such as MMF-based jerseys and pullovers are in high demand. Athletic wear is also moving increasingly towards MMF.
Source: Hindustan Times
The Centre is working towards a framework on sustainability for the textiles industry amid a rising global focus, especially among developed nations, to incorporate sustainable initiatives in production and trade of textiles. Government officials believe that a shift towards sustainability in the textiles sector is crucial for maintaining a competitive edge in the global market. The ministry of textiles is preparing the framework and has been in consultations with the industry to take into consideration its views. "Apart from focus on implementation of the production-linked incentive (PLI) scheme and PM MITRA for the textiles sector, something that's under consideration is sustainability as it is here to stay, even internationally. We plan to come up with a broad approach paper and framework and that should happen soon," a senior government official told Business Standard.
Source: Business Standard
Synopsis India's manufacturing sector saw significant growth in October after three months of slowdown. Improved demand boosted job creation and a positive business outlook. New orders, both domestic and international, surged. Despite higher inflation, the outlook remains optimistic with increased hiring and strong consumer demand expected to continue. India's manufacturing growth gained momentum in October after decelerating for three months as demand improved significantly, helping in job creation and leading to a better business outlook, according to a business survey released on Monday. The HSBC final India Manufacturing Purchasing Managers' Index, complied by S&P Global, rose to 57.5 in October from an eight-month low of 56.5 in September and was above a preliminary estimate of 57.4. "India's headline manufacturing PMI picked up substantially in October as the economy's operating conditions continue to broadly improve," noted Pranjul Bhandari, chief India economist at HSBC. "Rapidly expanding new orders and international sales reflect strong demand growth for India's manufacturing sector." The output and new orders sub-indexes rose to three-month highs with a notable increase in demand. International demand improved from a year-and-a-half low in September. A desire for Indian goods lead to orders from Asia, Europe, Latin America and
Buoyant demand also boosted the outlook for the year ahead. "Business confidence is also very high due to expectations of continued strong consumer demand, new product releases, and sales pending approval," added Bhandari. To meet growing demand, firms took on many more workers than in September. Hiring increased for an eighth consecutive month. That would probably bring some relief to the government, which has failed to create enough well paying jobs for those entering the workforce. Economists cautioned job creation will remain muted over the next 12 months, a Reuters poll published a week ago showed. Inflationary pressures increased with both input and output prices rising faster. Input cost inflation was the highest in three months, elevated by higher material costs, wage bills and transportation fees. Firms passed on the extra costs to their clients at a much quicker pace than in September. India's inflation rose to a nine-month high of 5.49% in September, largely driven by higher food prices and close to the upper end of the Reserve Bank of India's (RBI) 2-6% target. Despite that, a separate Reuters poll last week showed a slim majority of economists expected the RBI to cut interest rates in December, to 6.25% from 6.50% currently.
Source: Economic Times
Synopsis India must implement substantial structural reforms and achieve a growth rate higher than 6.5% to meet its 2047 advanced economy goal, Krishna Srinivasan, director of the Asia and Pacific Department (APD) at the International Monetary Fund, says. The IMF projects India's GDP growth will ease to 7% in FY25 and potential growth to 6.5% in FY26 amid various risks. India will need to undertake a lot of very serious structural reforms to meet the aspiration of being an advanced economy by 2047, Krishna Srinivasan, director of the Asia and Pacific Department (APD) at the International Monetary Fund tells Deepshikha Sikarwar in an interview. The IMF in its Regional Economic Outlook has forecast India’s growth at 7% for FY25.
Source: Economic Times
Synopsis India collected ₹ 1.87 lakh crore in GST in October, the second-highest monthly total ever. Domestic GST collections increased significantly due to festival demand. Experts remain cautious about the short-term outlook but see long-term prospects as promising due to India's growing consumer base and pro-growth policies. November collections will be crucial to determine short-term trends. India collected ₹ 1.87 lakh crore in goods and services tax in October, marking the second-highest gross GST collection in any month to date, reflecting the resilience of the country's economy amid global uncertainties. The collection was up 8.9% year on year. Even when collections from customs and imports remained muted last month, festival demand kept the collections high with domestic GST collections rising 10 7% on year to ₹1 42 lakh crore official data released.
Source: Economic Times
Synopsis India aims to reform its free trade strategy, targeting deals with the UK and the EU while addressing past issues. Current trade negotiations are criticized for being outdated and overly defensive. A new approach could enhance India's access to strategic supply chains and modern trade practices, possibly empowering negotiators to achieve more effective agreements. India’s approach to free trade can appear contradictory. Officials insist they are serious about closing new deals with the UK and the European Union and improving older ones with countries such as Australia. But they also complain that free trade deals in the past have “hurt” India or that they serve as a backdoor for unwelcome Chinese goods. This makes it hard to interpret news that the Ministry of Commerce, which handles trade talks, plans to seek cabinet approval for a new negotiating strategy. The loud grumbling from trade bureaucrats suggests India may soon back even further away from open markets. There is also, however, an optimistic case to be made for a new trade roadmap. India’s negotiators have been stuck in the 20th century. New rules of the road might drag them into the 21st. Indian officials still tend to think of trade as a zero-sum game, with tariffs as the only real levers. They are legendarily defensive: Global counterparts often wonder at how India can produce new “red lines” out of nowhere, aimed at protecting one sector after another. The potential gains from new markets are rarely considered — perhaps because, deep down, the bureaucracy doesn’t believe that Indian entrepreneurs have the nous to turn new free-trade agreements into attractive export opportunities. The deal that New Delhi signed with the Association of Southeast Asian Nations in 2011 left a particular scar: Imports from Asean have grown much faster than exports from India to the bloc. If officialdom is so full of pessimists, then what good can a new strategy do? Negotiations with the EU suggest one plausible answer. Talks were reopened in recent years — after collapsing dramatically over a decade ago — because leaders in both Europe and India believed closer economic integration was strategically necessary. Economic security drove the decision, not optimism about export-driven growth. A fresh mandate from Prime Minister Narendra Modi’s cabinet might serve to remind negotiators to evaluate trade from a wider perspective, one which prioritizes access to strategically important supply chains, finance and technology. And that isn’t the only way in which India’s approach to trade needs could usefully be broadened. A narrow focus on tariffs ignores the numerous additional domains that make up modern trade agreements — from transparency about labor regulations to environmental rules and the role of civil society. Here I have some sympathy for officials. Ministries are naturally protective of their turf. Why would one allow staff from another to encroach on its domain? As a consequence, while everyone else wonders how best to embed environmental principles into trade rules, India still insists, as it did 30 years ago, that these are two completely different conversations. Yet this leads to odd and counter-productive situations. It makes no sense that India — where workplace regulations are famously among the most restrictive in the world — is scared of discussing labor rules with potential trading partners. Here’s a useful shortcut to understanding the Indian state. If a bureaucrat says “no” to something, it’s not necessarily because she doesn’t want to see it happen. Most likely, it’s because she’s not sure of what will happen to her career if she says “yes.” Any official will ask the following questions of any decision: Are there unforeseen consequences for which I might be held responsible? Am I stepping on someone else’s toes? Is this a new precedent I will have to defend to my superiors? Worst of all, the generalists who staff the civil service tend to be transferred to other jobs the moment they begin to develop enough confidence to say “yes” instead of “no.”
Source : Economic times
Birla Cellulose, the cellulosic fibres business of the Aditya Birla Group and one of the world’s leading Man-Made Cellulosic Fibre (MMCF) producers through its flagship company Grasim Industries Limited, and Circ, a US-based textile-to-textile recycling innovator, have announced a long-term strategic partnership aimed at accelerating the scaling of recycling fibres within the textiles sector.
This groundbreaking collaboration proposes, for Birla Cellulose to purchase up-to 5,000 tons of Circ's pulp, per year, for a period of 5 years from Circ’s first commercial-scale facility. This pulp will be converted into lyocell staple fibre, significantly enhancing access to recycled materials and supporting Circ as it scales its commercial production.
“Our partnership with Birla Cellulose, a leading global producer of MMCFs, is significant as it demonstrates both Circ’s ongoing progress towards scalability as well as the industry’s commitment to investing in a truly circular economy,” said Peter Majeranowski, CEO of Circ. “Together, we are poised to create a more sustainable fashion future by integrating recycled materials into textiles on the global stage.”
Dr. Aspi Patel, Chief Technology Officer of Grasim Industries Limited, said, “This partnership reflects our deep commitment to environmental stewardship and represents a crucial step in advancing innovation within the textile industry. By combining Circ's cutting-edge recycling technology with our cellulosic fibres, we are significantly enhancing the potential for a truly circular economy."
As brands and consumers increasingly prioritize eco-friendly options, the supply chain will play a pivotal role in facilitating demand. The partnership between Birla Cellulose and Circ demonstrates the role of collaboration in effectively scaling recycling initiatives. With the appetite for recycled materials outpacing the current supply, Birla Cellulose's willingness to procure and utilize Circ pulp ensures Birla Cellulose's customers have access to high-quality recycled Circ Lyocell. This partnership enables brands and supply chain partners can partake and play their part in the future of the global fashion industry.
Both companies are committed to promoting circular economy practices and reducing environmental impact through innovative technology and material reuse. They are also aligned on their shared vision for a sustainable future with a promise to set new benchmarks in the textile industry.
Source: Fibre2fashion
India is the second largest trade partner for Saudi Arabia whereas Saudi Arabia is India's fourth largest trading partner These areas were discussed during the recent visit of Commerce and Industry Minister Piyush Goyal to Riyadh. He co-chaired the second meeting of the economy and investment committee under the India-Saudi Strategic Partnership Council (SPC) along with Minister of Energy, Saudi Arabia, Abdulaziz bin Salman Al-Saud on October 30 in Riyadh. "Both countries are exploring collaboration in emerging fields like fintech, new technologies, energy efficiency, clean hydrogen, textiles, mining," the commerce and industry ministry said. During the Future Investment Initiative (FII) event, the minister urged global investors to seize emerging opportunities in India, particularly in high-growth sectors such as artificial intelligence, renewable energy, digital infrastructure and advanced manufacturing. India is the second largest trade partner for Saudi Arabia whereas Saudi Arabia is India's fourth largest trading partner ventures/wholly-owned entities, with investments worth about $2 billion in the Kingdom. Saudi's direct investments in India amounted to $3.22 billion from April 2000 to June 2024.
Source: Deccan Herald
DHAKA – Bangladesh, the world’s second-largest garment producer, has opted to bypass India and ship its textiles to global markets through the Maldives, hurting the cargo revenue prospects of India’s airports and ports amid strained bilateral ties, reports Mint.
The Indian business newspaper, citing three people aware of the development, reports that Bangladesh was rerouting its textile exports to the Maldives by sea and then dispatching cargoes by air to its global customers, including H&M and Zara.
“Previously, Bangladeshi goods were shipped through Indian airports, but now they are rerouting shipments from other locations,” Deepak Tiwari, managing director of MSC Agency (India) Pvt Ltd, told Mint over the phone.
“This shift means India’s airports and ports lose revenue previously earned from handling these cargoes,” he said.
The Mediterranean Shipping Company (MSC) is a leading global container shipping company.
The redirection of textile exports could weaken trade relations between India and Bangladesh and reduce the collaborative opportunities in logistics and infrastructure projects, said the newspaper.
It could also potentially threaten India’s revenue from port and transit fees, alongside business generated from Bangladesh’s exports that pass through Indian borders, it said.
Seized by the issue, the Indian government is exploring a balanced solution to ensure that Bangladesh’s textile exports—significant in volume and linked to Indian manufacturing hubs in Bangladesh—remain beneficial to Indian interests, one person said.
“A significant portion of these Bangladeshi textile exports are being produced in facilities or factories owned or operated by Indian companies based in Bangladesh,” the first person said.
Bangladesh’s textile industry contributes 80 percent of its exports and 13 percent of its GDP.
“The issue is under the government’s attention. We are currently reviewing its impact on India,” the second person said.
Industry experts suggested that Bangladesh took this step to gain greater control over its supply chain and meet its shipment deadlines by avoiding delays caused at India’s airports, said Mint.
“This new route offers Bangladesh a strategic advantage along with improved reliability, which is crucial for meeting tight deadlines in the international clothing market,” said Arun Kumar, president of the Association of Multimodal Transport Operators of India.
“Furthermore, by avoiding reliance on Indian ports, Bangladesh is ensuring greater control over its supply chain,” said the chief of the association advocating seamless, efficient transportation solutions across sea, rail and road networks in India.
Kumar explained that textiles were also treated as perishable goods and that failure to deliver them on time results in the rejection of consignments. Garments meant for a specific season lose their value if they are delivered late.
Indian textile exporters had a different perspective on the rerouting of exports by Bangladesh.
“There’s nothing to read into this,” Anil Buchasia, executive member, eastern region, Apparel Export Promotion Council, told Mint over the phone. “Indian airports are already congested, and we had also requested the government to restrict Bangladeshi textiles from passing through Indian airports,” he said. The third person aware of the developments dismissed suggestions that the move was linked to the ouster in August of former Bangladesh prime minister Sheikh Hasina, who is currently said to be staying in India. The International Crimes Tribunal (Bangladesh) had issued an arrest warrant against her in October. “The government does not see this as a reaction to Sheikh Hasina’s asylum. Textiles are the backbone of Bangladesh’s economy, so they must have made this decision to promote their textile exports,” the third person said. Bangladesh’s garment exports fell 4.34 percent to $44.47 billion in FY24, according to Bangladesh Bank. The decline was attributed primarily to reduced shipments of readymade garments, reflecting broader economic challenges.
Source: Asia News
Thai Textile Society is holding a day trip to experience various forms of fibre art in Hua Hin, on Saturday. This old and well-established town in Prachuap Khiri Khan province has been home to the renowned Khomapastr factory, one of Thailand's first textile printing houses established in 1948 by His Royal Highness Prince Bovoradej and his wife Her Serene Highness Pajongchitr Kridakorn. Participants will learn how the prince developed a passion for weaving and dyeing textiles while living in Saigon in the 1930s. He returned to Thailand following World War II and built with his wife a small weaving, dyeing and printing workshop in the sleepy resort town of Hua Hin that continues production to this day. Also, learn about the printing technique involved in creating these traditional Thai designs and shop at their store. The trip will then visit the Ban Khao Tao Weaving and Handicraft Learning Centre that was established by Their Majesties King Bhumibol and Queen Sirikit in 1964 to provide the fishermen and their families with extra income. The workshop has many weavers and there will be the opportunity to shop there as well. The last stop will be Baanstraw where eco-friendly baskets, bags and other items are hand woven from various natural fibers. These high-quality and beautifully crafted products are sold in Thailand and abroad. The fee is 2,000 baht (1,800 baht for members) including lunch at a popular seafood restaurant.
Source: Bangkok post
Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on Tuesday to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex). Coordinating Minister for Economic Affairs Airlangga Hartarto said that the President aimed to gain insights into the textile industry's difficulties. According to Airlangga, as an initial step, the government plans to ensure that Sritex can maintain its import-export activities. The meeting also discussed emergency funding sources for Sritex after it was declared bankrupt by the Semarang Commercial Court. Airlangga said that by keeping Sritex operational, jobs for the company's 50,000 workers can be preserved. Recent survey results show that the industrial confidence index in September reached above 50 points, meaning that it is recovering positively. Indonesia's manufacturing sector secured a reading of 52.48 in September, up slightly from 52.4 in August. Meanwhile, Febri Hendri Antoni Arie, spokesperson for Industry Ministry, said that the textile industry has not yet fully recovered from the influx of imports goods. Although the confidence index exceeded 50 points, the number of workers have been laid off in the industry is still high. According to the Manpower Ministry, 42,863 individuals were laid off in Indonesia as of the end of July this year, with 22,356 of those coming from the processing industry, including textiles, garments, and footwear. The Indonesian Filament Yarn and Fiber Producers Association (Apsyfi) noted that around 30 textile factories have shut down, causing 10,800 layoffs in the first five months of this year, compared to 7,200 layoffs in 2023.
Source: Investor Magazine
The loss of job orders that have moved to Pakistan over the last two years is mostly to blame for the severe decline in Bangladesh’s domestic textile export industry. A sharp spike in petrol prices, political turbulence, and heightened labour unrest in Bangladesh’s industrial areas have all contributed to this trend.
In February 2023, the price of petrol in Bangladesh increased from Taka 11.98 per unit to Taka 30 per unit, a startling 150.41 percent increase. Many local home textile exporters were compelled to stop booking new work orders because to the steep increase in production costs, which made it financially unfeasible. Industry insiders claim that businesses that formerly paid monthly petrol expenses of about Taka 68 crore now have to pay more than Taka 126 crore, leading to substantial financial losses.
Little Group chairman Khorshed Alam emphasised the consequences of this price rise, pointing out that work orders were already predicated on outdated pricing models before the increase took place. Despite this, industry executives remain cautiously optimistic, pointing out that exports of domestic textiles are gradually rebounding.
In sharp contrast, Pakistan, the seventh-largest producer of cotton in the world, is seeing a boom in its textile industry thanks to supportive government policies and a notable increase in cotton production. As a result, Pakistan’s textile exports increased 13 percent year over year to US $ 1.64 billion in August. Knitwear and bedwear exports increased by 15 per cent, while ready-made clothing exports increased by 28 per cent. Pakistan also enjoys zero-rated tariffs on about two-thirds of tariff lines under the Generalised Scheme of Preferences Plus (GSP+) of the European Union. Compared to nations like Bangladesh, who only receive regular GSP benefits, Pakistani exports are therefore more competitive. Pakistan’s exports to the EU increased by a remarkable 108 per cent between 2014 and 2022. In contrast, Bangladesh’s domestic textile exports for the fiscal year 2023–2024 decreased 2.05 per cent to US $ 851.01 million, a substantial drop from the US $ 1 billion mark reached in the fiscal year 2021. The gas crisis and continued political unrest, which have harmed production capacity and competitiveness, are blamed by industry experts for this decline. Only five to seven significant textile manufacturers are still operating in the export market as a result of low gas pressure and persistent labour problems, according to former CEO of the Bangladesh Textile Mills Association Monsoor Ahmed.
In order to restore its competitive advantage in the international market, Bangladesh’s textile sector urgently needs strategic changes and assistance as it continues to navigate these difficulties.
Source: Apparel Resource
Kenya’s Uasin Gishu county governor Jonathan Bii Chelilim recently said his government is keen to work with global investors, particularly from the United States, to tap into the county’s textile industry, which has tremendous potential.
“With the right partnerships, we can make Uasin Gishu a model for sustainable textile manufacturing,” the governor was quoted as saying in an official release from the county. Bii Chelilim recently met US ambassador to Kenya Meg Whitman, who visited the country headquarters. While touring the main campus of Moi University, Whitman said over 200,000 people are employed in the industry and there is need to boost it further to employ more people. “We remain excited about manufacturing in Kenya. Kenya is underinvested in manufacturing, but textile manufacturing is a big growth area for Kenya,” said Whitman. The American embassy will follow up on infrastructure and housing development in the county as an area of concern in economic growth, she said.
She highlighted green cooking and green energy an area of interest especially in environmental conservation.
Source: Texadviser
Textiles and Jute Adviser Brigadier General (Retd) Dr M Sakhawat Hossain has urged the South Korean investors to invest in Bangladesh's textile and jute sectors for the mutual benefits of the two countries. Sakhawat, also the shipping ministry adviser, came up with the call as a delegation of South Korea paid a courtesy call on him at his Bangladesh Secretariat office on Monday. "It is now safe to invest in Bangladesh. The process of participating in the lease process is open to the investors as the government has planned to restart production in closed mills through PPP and long-term lease," the adviser told the delegation. Besides, the shipping adviser mentioned that there are immense potentials in the naval sector, especially in the dockyard and shipbuilding industry while there are opportunities to invest here through Public Private Partnership (PPP) or joint ventures also. Referring to the longstanding bilateral ties between Bangladesh and South Korea Dr Sakhawat said, "Bangladesh and South Korea have a long history of friendly relations. Korea is one of the country's development partners. Several projects related to Korea are ongoing under the ministry. Many Korean people are working in different sectors in Bangladesh". "Yesterday two mills were handed over to Pran Group through lease . . . Initially some 30 years time has been given but there is the option to extend the tenure subsequently. Besides, every mill has good communication system," he mentioned. During the meeting, the Korean investment delegation lauded the country's overall development and said, "Bangladesh has good commercial relations with Korea, which is also one of the jute importing countries from Bangladesh." The delegation expressed their interest to visit the mills located in Khulna while the ministry concerned assured them of providing all necessary cooperation in this regard. Textile and jute ministry secretary Md Abdur Rouf and shipping ministry secretary Delwara Begum were also present there.
Source: Daily Observer
