The Ministry of Textiles, Government of India, had issued Quality Control Order (QCO) for medical textiles, Medical Textiles (Quality Control) Order, 2024, to ensure safety and efficacy of critical products covered under this segment. The order sets stringent quality standards, including testing protocols and labelling requirements for these products. In recognition of the unique challenges faced by Small and Medium Enterprises (SMEs), the Ministry has granted an additional extension in the timeline to comply with the ibid QCO i.e. upto 1st April 2025 (to the SME industry), specifically for 03 items under Schedule A of the said order, namely Sanitary napkins, Baby Diaper and Reusable Sanitary Pad/Sanitary Napkin/Period Panties. This concession will enable SMEs to adapt to the new regulations without compromising their business operations. Further to facilitate a smooth transition, manufacturers and importers have been granted a timeframe of 6-month i.e. upto 30th June 2025, as a transition period to clear their existing legacy stock. This provision will enable the industry to adjust to the new quality standards without significant disruption. These measures aim to improve safety, enhance efficacy, and increase confidence among healthcare industry and the end consumer. The Ministry of Textiles is committed to supporting the industry's transition to the quality standards.
Source: PIB
Synopsis Commerce and Industry Minister Piyush Goyal stated that despite global economic uncertainties, India's exports of goods and services are anticipated to surpass USD 800 billion this scale, setting a new record. The previous scale year saw exports at USD 778 billion. India's export basket is large, and services exports are growing rapidly, indicating a resilient economic performance amidst global challenges. New Delhi: Commerce and Industry Minister Piyush Goyal on Friday said despite global economic uncertainties, India's exports of goods and services are expected to cross USD 800 billion this scale, which will be a record. Last scale year, the exports stood at USD 778 billion He said though there will be stresses in the global system, but India's exports basket is large. "My estimate is that we will cross USD 800 billion in exports, another record given the world situation," he told reporters here. He added share in services exports is also growing at a rapid pace. On exports to developing and least developed countries (LDCs), he said those nations have been stressed because of the forex crisis they are facing after the COVID-19 pandemic. The Red Sea crisis too had impacted shipping lines. Despite all these challenges and several items where the government had imposed restrictions, significant growth in exports of goods and services is registered. "Imports were also high but that is in a way a sign of a growing economy. It shows that there is a demand for equipment, machinery in a big way, input and intermediate products, in the country," he said. On the new US administration, the minister said: "We are looking forward to a deep and substantive engagement with the new US administration...we are looking forward to working with (Donald) Trump administration again".
Source: Economic Times
On some occasions India has been singled out by Trump for imposing higher tariffs on US imports. India is looking forward to a deep and substantive engagement with the incoming Trump administration that assumes office later this month, commerce and industry minister Piyush Goyal said Friday. “I have had the privilege of working with that administration personally also. Everyone of our engagements over the years have only got better and better,” he told reporters. As the time for the inauguration of Trump draws near the world is eagerly waiting for its moves on threats regarding import tariffs that have been dished out by US President-elect Donald Trump to its key trading partners after winning elections in November last year. On radar for higher duties are China, Canada, Mexico, European Union, members of BRICS as a whole. On some occasions India has been singled out by Trump for imposing higher tariffs on US imports. On India’s trade prospects in the coming year, Goyal said both goods and services exports cumulatively will cross $ 800 billion this financial year that ends on March 31. “Given the current world situation where world trade is contracting or under stress this growth will be creditable.” In April-November India’s cumulative exports stand at $ 536.2 billion. While both services and goods exports have expanded, the year has also seen record trade deficits in merchandise trade. “Imports are a sign of a growing economy. It shows there has been a demand for machinery and equipment, inputs and intermediate products. It means many more opportunities for people to start new businesses in India and invest in India. It shows that there is a demand for consumer goods which encourages people to invest in India. This ultimately is leading up to a great growth story,” Goyal said.
Source: Business Standard
Synopsis India and Iran reviewed their relationship, focusing on Chabahar port development, trade, and economic cooperation. They discussed ways to resume Iranian crude oil procurement, regional issues, and boosting tourism. Both sides stressed Chabahar's role in Afghanistan's reconstruction and their commitment to deeper multilateral cooperation in organizations like the UN, BRICS, and SCO. India and Iran on Friday carried out a comprehensive review of their ties including the joint development of the Chabahar port, ways to boost trade and economic engagement and possible cooperation in agriculture and some other sectors. At the 19th India Iran Foreign Oice Consultations held in Delhi, the Iranian side is learnt to have requested New Delhi to explore ways to resume procurement of Iranian crude oil. India stopped the procurement of crude oil from Iran in mid-2019 following sanctions imposed on the Persian Gulf nation by the United States. The Iranian delegation at the talks was led by Deputy Foreign Minister Majid Takht Ravanchi while the Indian side was headed by Foreign Secretary Vikram Misri. Ravanchi met External Aairs Minister S Jaishankar and the discussions focused on bilateral matters and current regional challenges. "Discussed our bilateral ties, progress in Chabahar port and regional developments. Confident that the Foreign Oice Consultations will give a momentum to our partnership," Jaishankar said on X. Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties. On the Foreign Oice Consultations, the Ministry of External Aairs (MEA) said the two sides "reviewed the entire spectrum of bilateral relationship, including Chabahar Port, agricultural cooperation, trade and economic issues, as well as cultural and people-to-people ties". It is understood that the Iranian deputy foreign minister underlined the need for boosting tourism between the two countries as part of enhancing people to-people ties. The discussions also covered current regional and global developments, including the situation in Afghanistan, West Asia, and the South Caucasus, the MEA said in a statement. "The foreign secretary highlighted the significance of Chabahar Port in supporting Afghanistan's reconstruction and economic development," it said. The sides also reiterated their commitment to deepen cooperation in multilateral fora, including at the United Nations, BRICS (Brazil-Russia India-China-South Africa) and the SCO (Shanghai Cooperation Organisation), the MEA said. Though the BRICS originally derived its name from the early members, it now includes Iran, Egypt, Ethiopia, and the United Arab Emirates. Ahead of the Foreign Oice Consultations, a senior Iranian official said Tehran is looking at ways to resume supplying crude oil to India and is keen on expanding the overall trade basket including in the petro-chemical sector through the Chabahar port. The official had said the development of Chabahar port has offered significant opportunities for India and Iran to boost trade and economic engagement. The port is outside the purview of US sanctions against Tehran.
Source: Economic Times
Ahmedabad: After witnessing a rising number of frauds, the Maskati Kapad Market Mahajan in the city is launching a website that will publicly list details of known fraudulent traders. This initiative aims to protect traders from falling victim to scammers, particularly those who operate across state lines. "We have been working to safeguard our traders from these unscrupulous individuals, but the number of cheating cases remains alarmingly high," said Gaurang Bhagat, President of Maskati Kapad Market Mahajan. "This website will serve as a central repository for information on known fraudsters. We will encourage textile associations across India to contribute to this database, allowing us to share critical information and prevent these individuals from exploiting traders in different cities." This move comes after a significant number of textile traders in Ahmedabad and Surat suffered financial losses due to fraudulent activities in recent years. A special investigation team (SIT) was even established to investigate these cases. In addition to the website, the association implemented several measures to minimize the risk of fraud. It stipulated that traders must verify the GST number of all buyers and deliver goods only to the buyer's registered address. It asked traders to extend credit only to buyers with a business relationship exceeding three years. It also reduced credit limit for buyers who have been in this business for more than three years but have a history of inconsistent payments.
Source: Times of India
Synopsis The Directorate General of Foreign Trade (DGFT) mandates stakeholder consultations for drafting Foreign Trade Policy to ensure inclusive participation. Amendments reflect the commitment to ease of doing business, but the government reserves final decision- making power to handle conflicting opinions. New Delhi: The Directorate General of Foreign Trade (DGFT) has made amendments to the Foreign Trade Policy to make consultations with stakeholders for their views on draft policies mandatory, an official statement said on Friday. The changes also provide the mechanism to inform reasons for not accepting views, suggestions, comments or feedback concerning the formulation or amendment of the Foreign Trade Policy, the commerce ministry said "The DGFT on Thursday notified amendment in the Foreign Trade Policy, 2023, to include Para...to bring legal backing in the FTP to make it necessary to do consultation with stakeholders to seek views, suggestions, comments or feedback from relevant stakeholders, including importers/exporters/industry experts concerning the formulation or amendment of the FTP," it said. The key objective of the amendments is to encourage the participation of all stakeholders in the decision-making process before introducing or changing policy and procedures affecting the importation, exportation, and transit of goods, along with a reasonable opportunity to comment and contribute to the process. The government is committed to ensuring due consideration is being given to every valuable opinion/feedback received from stakeholders, it added. "However, at the same time, the government has to remain cognisant of the fact that multiple stakeholders may offer different opinions on the same subject and in such cases for smooth functioning of business the government ought to reserve to itself the right to take a final call," it said. It is only to deal with exceptional circumstances such as this, that the right to suo moto formulate policies has been reserved with the government, it added. "The latest amendments in the Foreign Trade Policy, 2023, reflect upon the central government's commitment towards strengthening the scope of ease of doing business by encouraging stakeholder and expert participation through consultation in the decision-making process," it said.
Source: Economic Times
Vietnam's textile, garment, and footwear industries recorded a total export value of $71 billion in 2024, indicating an impressive recovery amid the challenging global economic environment. According to the Vietnam Textile and Apparel Association, the textile and garment sector achieved $44 billion in exports last year, an increase of 11 per cent on-year. The US remains Vietnam's largest export market, with turnover of $16.7 billion, up over 12 per cent against 2023 and making up for 38 per cent of total export turnover. It was followed by Japan, the EU, South Korea, and China. Garment 10 Corporation, a member of Vietnam National Textile and Garment Group (Vinatex), also achieved its 2024 goals with a revenue of nearly $185 million and a profit of $5.2 million, up 10 per cent and 7 per cent on-year, respectively. Another member company, Hoa Tho Textile and Garment JSC, also posted close to $195 million in revenue and more than $13 million in profit in 2024, up 10 per cent on-year and 53 per cent respectively compared to the year’s plan. Meanwhile, the footwear and leather sector fetched a revenue of $27 billion, marking a 10 per cent rise from 2023. Last year’s figure stood at just $24 billion, down over 14 per cent from 2022. According to the Vietnam Leather, Footwear, and Handbag Association, the sector has taken advantage of free trade agreements Vietnam has signed to boost exports, with activities involving China, the EU, South Korea, and ASEAN faring well over the past year. "Large markets such as the US and the EU posted a growth rate of over 10 per cent. In particular, China remains the sector’s billion-dollar export market, trailing behind the US and EU and accounting for 9 per cent of export turnover," the association said. Vietnam reaffirmed its position as the world's third-largest footwear producer (behind China and India) with a 1.4 billion-pair annual output and the second-largest footwear exporter globally (after China) with 1.3 billion pairs exported annually. Major textile and footwear companies have so far received orders until April. However, challenges remain for businesses next year as order prices will not increase while input costs continue to rise. Companies have to adjust their production to adapt to major changes in brands’ purchasing patterns, alongside regulations related to payment. This is coupled with more stringent sustainability requirements and self-sufficiency in raw materials. Andri Meier, deputy head of Cooperation at the Swiss Embassy, said, "Against the backdrop of the rapidly evolving international trade landscape, the sustainability requirements are no longer an option but an imperative. New regulations on sustainable trade from importers are pushing countries like Vietnam to accelerate the transformation of their production processes." Le Tien Truong, chairman of the board at Vinatex, said, "With new US tariffs looming, the textile and garment orders from China will be more expensive than usual. This is a good opportunity for countries like Vietnam to welcome orders shifting from China if they ensure good compliance with the rule of origin," Truong said. The textile and garment sector is targeting an export turnover of $48-49 billion in 2025, while the footwear and leather sector set a goal of $29-30 billion in export turnover next year. The main export markets for Vietnam's textile and garment sector remain the US, the EU, China, Japan, and South Korea. John Goyer, executive director of Southeast Asia at the US Chamber of Commerce, said, "Bilateral trade between Vietnam and the US is on the rise, but businesses should pay more attention to the trade policies under the new US presidency. It is likely that tariff tools will be used more on imports." According to a report released by HSBC on December 20, Vietnam has the highest exposure to the US market in ASEAN, led by textiles and garments, footwear, wooden furniture, and machinery. However, trade and tariff policy is likely a challenge for the short-term trade growth outlook. "Whether end demand for goods improves further will be key in determining the strength of Vietnam’s recovery, as western markets make up close to half of the country's exports. The trajectory and pace of consumer spending in the west will therefore need to be closely watched," according to HSBC.
Source: Vir.com
President of the Turkish Clothing Manufacturers Association (TGSD), Ramazan Kaya, stated that European clothing brands are pressuring Türkiye’s textile industry to move production to Egypt because of lower costs, signalling a critical transformation for the sector. Kaya evaluated Turkish denim manufacturer Denim Rise’s most recent $8.8 million investment in a ready-to-wear production facility in Egypt’s West Kantara Industrial Zone, which will employ 1,000 people, in an interview with the business-focused patronlardunyasi.com. He explained that the industry is evolving toward a model where value-added production stays in Türkiye while labor-intensive operations shift to Egypt. “In textiles, almost everyone is heading to Egypt, examining opportunities, and making investment decisions. Egypt’s free trade agreement with the U.S. is a major draw. European brands working with Turkish producers are also pressuring them to expand into Egypt to extend contracts,” Kaya stated. Highlighting lower labour costs, Kaya said, “In Egypt, the gross cost of a worker is $150, compared to $1,000 here, especially in labour-intensive sectors like denim; the shift to Egypt is accelerating.” Kaya noted that companies investing in Egypt are maintaining their operations in Türkiye. He explained the pandemic emphasized the importance of “nearshoring” and “secure supply chains,” areas where Türkiye continues to hold a significant advantage.
Production in Egypt boosts exports but deepens Türkiye’s labour shortages
Huseyin Guzel, a member of Denim Rise’s Board of Directors, described the investment as an initial step toward exploring new markets, as the new facility would export 70% of its production. Egypt continues to attract considerable investment from Türkiye by offering special incentives in its free zones, particularly for labour-intensive sectors, and leveraging its trade agreements. Last year, Eroglu Holding signed a deal for a factory in the same region, initiating a project to produce 7.2 million jeans annually, as this $40 million investment is expected to create 3,000 jobs. On the other hand, this shift reflects on employment losses as the textile and ready-to-wear sectors—key drivers of Turkish exports—have shed 250,000 jobs over the past year.
Source: Turkiye Today
In a recent announcement, the Finance Adviser of Bangladesh, Salehuddin Ahmed confirmed that the Government will implement a hike in value-added tax (VAT) on branded apparel outlets, along with a range of other goods and services. The VAT on these outlets will rise from 7 per cent to 15 per cent, a move that the adviser claims will primarily affect high-income individuals while not significantly impacting the prices of daily necessities. Speaking to reporters at the Secretariat on Thursday, Ahmed emphasised that the VAT increases are intended to bolster state revenue rather than to fulfill International Monetary Fund (IMF) demands. He stated, “The decision targets high-end products and services, and we expect it to have a minimal effect on essential goods that the average consumer relies on.” The National Board of Revenue (NBR) is set to issue a gazette detailing the VAT hikes, which encompass various high-end items. Alongside branded apparel outlets, other targets include branded sweet stores, air-conditioned eateries, and luxury services, as well as products like powder milk and biscuits. This adjustment in VAT rates comes as part of broader measures following the IMF’s request for Bangladesh to raise its VAT rate to 15 per cent as a condition for receiving the fourth tranche of a US $ 4.7 billion bailout package. The interim Government, led by Prof. Yunus, is also seeking an additional US $ 0.75 billion, but compliance with IMF terms regarding VAT expansion and tax revenue enhancement remains crucial.
Source: Apparel Resource
