Techtextil India 2025, the country’s premier platform for the technical textiles industry, is set to create new benchmarks with its 10th edition scheduled from November 19–21, 2025, at the Bombay Exhibition Centre, Mumbai. A day prior, on November 18, 2025, the event will host the Dornbirn Global Fiber Conference (GFC) Asia under the Techtextil India Symposium. This strategic collaboration with the Austrian Fibers Institute brings the renowned Asia edition of the Dornbirn GFC to India, offering an unparalleled opportunity for the technical textiles value chain to explore advancements in fiber technology, sustainable materials, and innovative applications.
The Dornbirn GFC Asia – India Conference will focus on the theme, ‘Shaping the Future: Sustainable Growth in Fiber Solutions and Innovations.’ Featuring globally acclaimed researchers, thought leaders, and manufacturers, the conference will showcase cutting-edge developments in spinning technology and fiber solutions. Meanwhile, the Techtextil India 2025 exhibition will highlight the industry's innovative strides across man-made fibers, non-woven textiles, functional textiles, and high-performance apparel. Specialized pavilions, including Meditex, will underscore advancements in medical textiles, reflecting the growing demand for high-performance and sustainable materials across sectors such as healthcare, automotive, construction, and sports.
With the event already sold out, leading global brands like Reliance Industries, Aditya Birla Yarns, JB Ecotex, and Ganesha Ecosphere are set to display their latest innovations. India’s technical textiles industry, backed by government initiatives like the National Technical Textiles Mission (NTTM) and the Technology Upgradation Fund Scheme (TUFS), is poised for unprecedented growth. With an ambitious goal of achieving a USD 40 billion market size and USD 10 billion in exports by 2030, these initiatives aim to drive innovation, promote sustainability, and attract foreign investments.The emphasis on circularity and sustainability in the sector is paving the way for practices such as reuse, repair, refurbishing, and recycling. Educational programs and skill development efforts are further expanding expertise in specialized categories like medical textiles, geotextiles, and mobile textiles. Against this backdrop, Techtextil India 2025, in collaboration with Dornbirn GFC Asia, marks a pivotal step in establishing India as a global hub for technical textile innovation and fostering cross-border knowledge exchange.
Source: Event FAQ
Apparel exports registered 12.9 % growth in dollar terms in December 2024 compared with the previous year and cumulative exports for April - December of 2024 registered 11.6 % growth as against the same period the previous year.
Sudhir Sekhri, chairman of the AEPC said in a statement, “This is the appropriate time when India needs to capitalise this opportunity and accelerate the momentum to expand its global footprints and enter new markets.”
The long-term outlook for Indian apparel exports remains positive, largely on account of improved product acceptance, adaptability to changing consumer trends, focus of factories on compliance, etc., he said.In April - November of 2024, apparel exports from India to the US grew 14.3 %, to Spain by 20.7 %, and 33.6 % in Netherlands. The exports did well in India’s FTA markets too, registering 22.7 % growth in South Korea, 9 % in Japan, and 9.8 % in Australia. According to the Confederation of Indian Textile Industry, textile exports in December went up by 12.76 % compared with December 2023 and 4.87 % in April-December 2024 compared with the same period the previous year. This shows the sector’s resilience to global uncertainties, said Rakesh Mehra, its chairman.
Indian textile and garment industry can improve its competitiveness and gain more share in the global trade with the Quality Control Order norms are relaxed and the import duty on cotton is removed, said SK Sundararaman, chairman of the Southern India Mills Association.
Source: The Hindu
The Indian textile industry is desperately looking for effective measures to restrict the flooding of cheaper and under-invoiced fabric imports, especially from China. Industry organisations lament the open manipulation of HS codes to evade the minimum import price (MIP) imposed on certain codes of Chapter 60 to control the imports of synthetic knitting fabric. The industry expects effective and permanent solutions in the Union Budget so that Indian fabric manufacturers can compete in a healthy and competitive environment. The budget will be presented by India’s Finance Minister Nirmala Sitharaman on February 1, 2025, in Parliament in New Delhi.
Sidharth Khanna, President of the Northern India Textile Mills’ Association (NITMA), has submitted a memorandum to Commerce and Industry Minister Piyush Goyal, demanding a permanent solution to the problem. He suggested imposing a minimum import price of $3.5 per kg on all HS codes under Chapter 60. The chapter covers knitted synthetic fabric under several dozen codes. He stated that the government should include a provision in the upcoming Union Budget to save the industry.
NITMA stated that importers are exploiting other HS codes that do not attract MIP to import cheaper fabric. The industry body has presented the latest trade data to support its allegations. It reported that average monthly fabric imports under HS codes 60011020, 60062300, and 60064300 increased by 600 percent to 7.52 million kg in October 2024. These codes do not attract the MIP of $3.5 per kg, and their average clearing price ranged between $1.14 and $1.53 per kg, while the actual import price may vary between $4 and $6 per kg. This is a clear indication of significant manipulation and under-invoicing in imports.
Sanjay Garg, Former President of NITMA, told Fibre2Fashion, “The Indian industry is not scared of global competition, but it should be fair. We just need to stop illegal activities in fabric imports so the industry can compete in a healthy environment. The government should take effective steps in the coming budget.”
Raj Kumar Agrawal, President of the Mumbai-based trade body All India Knitters Association, is consistently raising the matter before the government. He told F2F, “Chinese companies are dumping fabric at unrealistically low prices not only from mainland China but also from other neighbouring countries. Chinese exporters are exploiting benefits given to neighbouring countries like Thailand, Indonesia, and Malaysia by India under various trade agreements, including the India-ASEAN trade agreement.”
Agrawal said that the government imposed MIP in March 2024 after representations from the industry. It also extended the period of MIP and expanded it to cover more codes. However, the government is reluctant to impose MIP on the entire Chapter 60. As a result, importers have sufficient options to use other codes to divert their inbound shipments, thereby evading the MIP.
Woven fabric imports are also on the rise despite stricter provisions. It is to be noted that woven fabric attracts 20 per cent import basic customs duty (BCD). There is also a provision of 20 per cent duty or the import duty applicable on specific codes of woven fabric, whichever is higher. BCD is applied on the value of the import, but certain codes of woven fabric also attract duty in an absolute amount per square meter, i.e., ₹150 per square meter.
According to trade data, woven fabric imports increased by 235 per cent to 4,621 million square meters in January–September 2024, especially textured base fabric imports jumped to 3,191 million square meters in the first six months of the current fiscal, compared to 219 million square meters in the same period of the previous fiscal. Industry sources stated that 94 per cent of the textured base fabric was imported from Thailand. Earlier, its imports had surged by just 7 per cent to 3,205 million square meters in 2023–24.
Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce & Industry (SGCCI), said, “The government should find a permanent solution, as the Indian industry is losing opportunities for value addition in the textile sector. The country is also losing revenue and potential jobs for its citizens. It is high time to increase the basic customs duty (BCD) from 5 per cent to 20 per cent on knitting fabric, with the provision of duty on specific codes based on weight.” He also suggested not restricting fibre imports through Quality Control Orders (QCO) but ensuring the availability of raw materials at globally competitive prices. The domestic industry is capable enough to compete with imported fabric supplies.
Source: Fibre2fashion
Synopsis Trade restrictions planned by incoming US President Donald Trump might lead to aggressive exports by China to Asian markets, including India, creating tough competition for Indian exporters. This could potentially slow India's export growth, while the trade deficit continues to widen with noticeable contractions in key export sectors.
Trade restrictions planned by the incoming US President Donald Trump could lead to aggressive exports by China to other Asian markets, including India, according to a report This shift is likely to create tough competition for Indian exporters in both regional and global markets, potentially slowing India's export growth. The report highlighted that "in view of the proposed steep tari hikes on Chinese goods by the incoming United States President, coupled with the expected slowdown in the Chinese economy, this will trigger aggressive exports from there to the Asian markets, including India." Geopolitical uncertainties, including the US-China trade tensions, continue to pose risks for global trade. Meanwhile, India's trade deficit has widened this fiscal as imports have consistently outpaced exports. The report added that India's export performance has remained unstable during the current fiscal year. While merchandise exports showed steady growth in the rst quarter, they contracted in the second quarter. There was a brief recovery in October 2024, but exports declined again in November and December. In December 2024, India's merchandise exports fell by 1 per cent year-on-year to USD 38.01 billion, following a 4.8 per cent decline in November. The fall was driven by significant drops in gems and jewellery exports (-26.5 per cent) and oil exports (-28.6 per cent). However, core export growth of 8.3 per cent helped cushion the decline, though it was lower than the 11.8 per cent growth recorded in November. Key sectors within the core category, such as readymade garments, ores and minerals, handicrafts, and coee, showed strong growth. On the positive side, India's surplus in services trade and robust remittance inflows provide some relief and are expected to keep the current account in a safe zone. However, the rising merchandise trade deficit remains a concern that needs close monitoring. The Crisil report emphasized that trade dynamics in the coming months would depend on how China redirects its exports and how India adapts to the resulting challenges.
Source: Economic Times
The median inflation forecast based on the Consumer Price Index (CPI) for 2024-25 is 4.8%, in line with the Reserve Bank of India’s projection for the year. The latest FICCI Economic Outlook Survey projects India’s GDP growth for 2024-25 at a median forecast of 6.4%, a slight dip from the 7.0% estimated in the previous survey conducted in September 2024. This forecast reflects a notable slowdown compared to the 8.2% growth achieved in 2023-24. These projections align with general expectations, indicating a moderation in economic activity. The agricultural sector, including allied activities, is expected to grow by 3.6% in 2024-25. Meanwhile, the industry and services sectors are projected to expand by 6.3% and 7.3%, respectively. Economic activity is anticipated to pick up in the second half of the fiscal year, supported by increased public capital expenditure, festive demand, and the normalization of industrial activity post-monsoon. Conducted in December 2024, FICCI’s survey gathered insights from leading economists in industry, banking, and financial services. The median inflation forecast based on the Consumer Price Index (CPI) for 2024-25 is 4.8%, in line with the Reserve Bank of India’s projection for the year.
Outlook for India
For India, economists expressed cautious optimism in light of external headwinds. Consumer spending is expected to pick up, driven by improvements in the agricultural sector that are likely to boost rural consumption. Food inflation, which has strained household budgets, is projected to ease, while monetary easing by the RBI, potentially lowering interest rates, could further stimulate consumption. On the investment front, the government’s continued focus on capital expenditure is seen as a key growth driver. Infrastructure investments, particularly in roads, housing, logistics, and railways, are expected to maintain momentum into 2025-26. However, there are concerns that private sector investment may remain subdued, with a cautious outlook deterring large-scale capacity expansions. Geopolitical uncertainties and uneven domestic demand, combined with oversupply from China, have kept investors cautious, although a rebound in demand, along with improved corporate balance sheets, may boost private investment.
Economists said the potential impact of Donald Trump’s policies may cause short-term disruptions, particularly in exports, foreign capital flows, and input costs. Tax cuts in the US could inflate the fiscal deficit, while higher tariffs and stricter immigration policies could drive up costs.
A reduction in US interest rates, less aggressive than expected, could result in reduced capital inflows to emerging markets like India, potentially causing fluctuations in the rupee. Trade tensions, particularly between the US and China, may also disrupt global supply chains and increase input costs in the short term. However, economists believe the US may adopt a more measured approach toward India.
On the positive side, India stands to benefit from shifts in global supply chains, particularly in electronics manufacturing and pharmaceuticals. India’s pharmaceutical industry is well-positioned to capitalise on disruptions in global supply chains, particularly in generics and active pharmaceutical ingredients. The country’s role as a manufacturing hub for sectors such as semiconductors, electronics, and automotive components could attract foreign direct investment, especially with targeted industrial policies.
The economists recommend that India focus on reducing tariffs on certain US imports, diversifying export markets, and strengthen collaboration in emerging areas like artificial intelligence, clean energy and cybersecurity.
Focus for Union Budget
As India prepares for the Union Budget of 2025-26, expected on February 1, 2025, economists highlighted key areas for policy focus. Reviving private consumption is a priority, with recommendations for a review of the current tax structure to enhance disposable income and stimulate spending. Continued investments in welfare programmes such as MGNREGA, PMGSY and PMAY are also suggested. Economists expect an increase in capital expenditure by 10-15% in the upcoming Budget, given its strong multiplier effects. Further recommendations include boosting agricultural productivity, improving rural infrastructure, and enhancing agricultural value chains. Investments in cold storage facilities and supply chain efficiency are critical for managing inflationary pressures and minimising food wastage. The manufacturing sector should continue to receive attention, and reforms in land, labour and the financial sector are necessary to improve the ease of doing business. Policy certainty and regular assessments of regulations are also vital for sustaining growth. Finally, with India’s export prospects under scrutiny, economists call for continued support for exporters, including extending the interest equalisation scheme and increasing marketing support allocations.
Global growth
Looking to 2025, economists expect global growth to maintain a positive trajectory, tempered by caution. Softening prices and monetary policy easing in key economies, along with strong growth in interest-sensitive sectors and a continued recovery in services, are expected to support global growth. Advances in technology, particularly in semiconductors, electronics, and artificial intelligence, along with a focus on green energy transitions, are likely to spur investment. However, substantial risks persist. Rising geopolitical tensions and trade policy uncertainties, such as the potential fragmentation of global trade, could impede growth. Political changes in the US are also a factor to watch, with potential impacts on trade relations and economic conditions. Additionally, the ongoing conflict in the Middle East remains a potential risk to energy markets. Challenges related to high public debt levels, climate-induced disruptions, and the vulnerability of economies reliant on agriculture and commodities add further complexity to the global outlook.
Source: Business Today
Synopsis Commerce and Industry Minister Piyush Goyal is set to visit Brussels to discuss India-EU trade and progress in the Free Trade Agreement with new EU Trade Commissioner Valdis Dombrovskis. The negotiations, after multiple rounds, require political direction to address sensitivities and aim to significantly enhance bilateral trade and investment. New Delhi: Commerce and Industry Minister Piyush Goyal will be visiting Brussels later this week. He will discuss India-EU trade, progress in the Free Trade Agreement (FTA) and other issues with new EU Trade Commissioner Valdis Dombrovskis, as per sources. The Union Minister has been taking active steps towards making the India EU trade agreements successful, as Goyal in December last year interacted with Ambassadors of the European Commission delegation, Austria, Belgium, Bulgaria, Czech Republic, Estonia, Italy, Ireland, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovak Republic, Spain and Sweden. The FTA negotiations, after 9 rounds of intense engagement, need political directions to arrive at a commercially meaningful deal while understanding the sensitivities of each other, the ministry has stated. The Minister further underlined that any sustainability discussions must appreciate the principle of Common But Differentiated Responsibility (CBDR) and implementation of such measures should take into account diering paths of development. Goyal has stressed that the FTA would be instrumental in further diversifying and expanding India's exports while strengthening critical value chains. In October last year, he expressed his optimism about the potential of trade between both sides. Speaking at at the launch of the Federation of European Business in India (FEBI) in New Delhi last year, Goyal said that two-way trade between Europe and India can grow exponentially if both sides understand each other's concerns and cooperate meaningfully. The agreement is aimed at further boosting bilateral trade and investments between the two regions. The two sides are negotiating a free trade agreement, an investment protection agreement and an agreement on geographical indications (GIs). The FTA negotiations between India and the EU, which have been ongoing since 2007, have seen periods of stagnation and revival. Talks resumed with renewed vigour in 2021 after a nearly eight-year hiatus, focusing on reducing taris, addressing market access challenges, and facilitating investment ows between the two regions. India's bilateral trade in goods with the EU reached USD 137.41 billion in 2023-24, making the EU India's largest trading partner for goods. Furthermore, bilateral trade in services between the two partners stood at an impressive USD 51.45 billion in 2023.
Source: Economic Times
Synopsis Despite improvements in doing-business rankings, India continues to face severe business setup challenges due to high costs, lengthy procedures and pervasive corruption. The bureaucratic inefficiencies and overregulation hinder startup growth and competitiveness, making manufacturing in India less attractive than in East Asia. A little over three years ago, the World Bank scrapped its annual “Doing Business” report amid allegations that its top management had applied pressure on sta to boost China’s score. Back then, India’s rank was 63. That was a big jump from 2014, when it languished at a lowly 134th position among 189 economies. Still, starting a business continues to be a nightmare. The internet is strewn with rst-person accounts — like this one — of the fruitless running around for mindless permits and approvals overwhelming even the most intrepid of entrepreneurs. Prime Minister Narendra Modi’s “Make in India” campaign has also got lost somewhere in the labyrinths of this bureaucratic maze. Despite the decadeold program, which claims to be the “single largest manufacturing initiative undertaken by a nation in recent history,” the share of manufacturing in the economy has shrunk to its lowest since 1960. A great unease of doing business is a big drag on India’s competitiveness. To see how big a problem it is, I spoke to someone who has set up a factory. The person, who requested anonymity to avoid getting into trouble with oicials, sketched out in great detail the dierences between Thailand, where he had successfully managed an industrial-machinery unit for nearly two decades, and India, where he has put up a similar-sized facility in Maharashtra, among the country’s most industrialised. According to him, the decision to manufacture in India comes with signicant disadvantages. Let’s add them up: Land and Registration Factory land in better-equipped industrial areas is 25% more expensive in India than Thailand. For the unit in question, the dierence works out to $200,000 for the same plot size with comparable transport connectivity. The buyer pays a 2% stamp duty in Thailand, and 6% in Maharashtra. On top of that, there is a standard bribe for registering property, something nearly every Indian homeowner can attest to. The usual practice is to hand over the money in a thick manila envelope to one’s broker, who then passes it on to the oicials. It works no dierently for industrial property. Add the legal and the “extra”-legal expenses, and property registration for the industrial-machines factory in Maharashtra costs nearly $50,000 more than in Bangkok. Construction The availability of low-cost labour makes it a sixth cheaper to build factories in India. However, nearly half of the advantage is eaten up by India’s 18% goods and services tax on construction. In Thailand, the 7% levy can be oset against the value-added tax the rm starts collecting from its customers once the factory goes into production. That isn’t allowed In India. And while all civic authorities insist on free space, regulations in Bangkok allow as much as 65% of the plot to be used for production. In Maharashtra, that gure drops to 55%. Permissions Then come the fees for building approvals and various no-objection certicates. (See table below.) But even after paying, the owner has to selfinsure against each and every risk. Since power shutdowns are rampant, the factory requires a diesel generator. It also needs to store 40,000 gallons of water on the premises. Forget a re truck. Since the municipality can’t be relied upon to supply even day-to-day water, the unit needs a go-ahead to dig a borewell. That permission also costs money. The Indian municipality charges a labour welfare fee, even though the workmen have to be insured against accidents by the labour contractor. At every step of dealing with the petty bureaucracy, some money needs to change hands to speed up the process. It is most certainly expected. All told, 19% of a $2.3 million factory in India is an extra burden of governance — or lack of it — that doesn’t exist in Thailand. This may not be an showstopper for a high-margin business that relies on skilled, productive labour and cutting-edge technology. But for a labourintensive startup operating with slim prots in an industry like readymade garments, going into production from a weak nancial position means fewer resources left to scale up. And therein, the entrepreneur tells me, lies the basic dierence between India and its East Asian neighbours. No ordinary Thai businessmen fears bankruptcy because of something his government may do; in India, such a prospect is very real. Solutions So what is the way out? Tackling overregulation — like the “number and location of spittoons” prescribed in the outmoded labour codes — should be a priority. A recent survey of 9,000 rms by LocalCircles, a New Delhi-based community engagement platform, showed that 68% of respondents had paid a bribe for property registration or transfer in the past year; and 62% had greased the palms of GST oicials. The law behind property registration in India goes back to 1899, while the goods and services tax has been in operation for less than a decade. And yet, when it comes to being avenues for graft, they now seem to be almost equally bad. I asked the industrial-machines entrepreneur if he had to pay any “extras” to register the Bangkok factory. Yes, a little bit, he said. But that’s where it stopped, whereas in India, ownership became the starting point for all kinds of negative surprises. For instance, he bought the land in India from a third party, which had won it in a bank auction after the previous occupant’s business went belly-up. But there’s a catch: an old, unpaid electricity bill from the same address. The utility is waving a 2023 judgment from India’s Supreme Court to ask the machinery business to pay those dues, which it should have collected from the auction winner. That’s another $200,000. The new owner has to pay a sizable chunk of the arrears to get reconnected, and then sue the seller to recover his loose It’s the little things that add up to a great unease. It leaves the jobless youth angry and factory owners struggling to compete.
Source: Economic Times
The Reserve Bank of India has implemented new rules to facilitate the use of the rupee in international trade and investment. These regulations allow overseas branches of authorised banks to open rupee accounts for non-residents, simplifying cross-border MUMBAI: The Reserve Bank of India (RBI) has announced new rules to encourage the use of rupee in international trade and investment. These changes allow foreigners to open rupee accounts overseas, making it easier to use the local currency for cross-border transactions. The amended norms allow overseas branches of banks with authorised dealer licence from RBI to open rupee accounts for people who live outside India.
These accounts can be used to make payments or receive money for approved activities involving people in India. "The ability to open bank accounts in the currency of a country outside that country is a foundational element of the internationalization of a currency. This will accelerate the move towards invoicing and settlement transactions internationally using the rupee. The use cases and ecosystem are only going to grow," said Srinivas Varadarajan, MD & head- global emerging markets, Deutsche Bank India.The move comes at a time when the rupee has come under pressure due to a stronger dollar and exiting foreign portfolio investors. Internationalizing the rupee can mitigate the exchange rate risks, reduces pressure on foreign exchange reserves, and improve India's current account balance. It also addresses geopolitical risks arising out of sanctions on trading partners.
Source: Times of India
Synopsis Despite improvements in doing-business rankings, India continues to face severe business setup challenges due to high costs, lengthy procedures and pervasive corruption. The bureaucratic inefficiencies and overregulation hinder startup growth and competitiveness, making manufacturing in India less attractive than in East Asia. A little over three years ago, the World Bank scrapped its annual “Doing Business” report amid allegations that its top management had applied pressure on sta to boost China’s score. Back then, India’s rank was 63. That was a big jump from 2014, when it languished at a lowly 134th position among 189 economies. Still, starting a business continues to be a nightmare. The internet is strewn with rst-person accounts — like this one — of the fruitless running around for mindless permits and approvals overwhelming even the most intrepid of entrepreneurs. Prime Minister Narendra Modi’s “Make in India” campaign has also got lost somewhere in the labyrinths of this bureaucratic maze. Despite the decadeold program, which claims to be the “single largest manufacturing initiative undertaken by a nation in recent history,” the share of manufacturing in the economy has shrunk to its lowest since 1960. A great unease of doing business is a big drag on India’s competitiveness. To see how big a problem it is, I spoke to someone who has set up a factory. The person, who requested anonymity to avoid getting into trouble with oicials, sketched out in great detail the dierences between Thailand, where he had successfully managed an industrial-machinery unit for nearly two decades, and India, where he has put up a similar-sized facility in Maharashtra, among the country’s most industrialised. According to him, the decision to manufacture in India comes with signicant disadvantages. Let’s add them up: Land and Registration Factory land in better-equipped industrial areas is 25% more expensive in India than Thailand. For the unit in question, the dierence works out to $200,000 for the same plot size with comparable transport connectivity. The buyer pays a 2% stamp duty in Thailand, and 6% in Maharashtra. On top of that, there is a standard bribe for registering property, something nearly every Indian homeowner can attest to. The usual practice is to hand over the money in a thick manila envelope to one’s broker, who then passes it on to the oicials. It works no dierently for industrial property. Add the legal and the “extra”-legal expenses, and property registration for the industrial-machines factory in Maharashtra costs nearly $50,000 more than in Bangkok. Construction The availability of low-cost labour makes it a sixth cheaper to build factories in India. However, nearly half of the advantage is eaten up by India’s 18% goods and services tax on construction. In Thailand, the 7% levy can be oset against the value-added tax the rm starts collecting from its customers once the factory goes into production. That isn’t allowed In India. And while all civic authorities insist on free space, regulations in Bangkok allow as much as 65% of the plot to be used for production. In Maharashtra, that gure drops to 55%. Permissions Then come the fees for building approvals and various no-objection certicates. (See table below.) But even after paying, the owner has to selfinsure against each and every risk. Since power shutdowns are rampant, the factory requires a diesel generator. It also needs to store 40,000 gallons of water on the premises. Forget a re truck. Since the municipality can’t be relied upon to supply even day-to-day water, the unit needs a go-ahead to dig a borewell. That permission also costs money. The Indian municipality charges a labour welfare fee, even though the workmen have to be insured against accidents by the labour contractor. At every step of dealing with the petty bureaucracy, some money needs to change hands to speed up the process. It is most certainly expected. All told, 19% of a $2.3 million factory in India is an extra burden of governance — or lack of it — that doesn’t exist in Thailand. This may not be an showstopper for a high-margin business that relies on skilled, productive labour and cutting-edge technology. But for a labourintensive startup operating with slim prots in an industry like readymade garments, going into production from a weak nancial position means fewer resources left to scale up. And therein, the entrepreneur tells me, lies the basic dierence between India and its East Asian neighbours. No ordinary Thai businessmen fears bankruptcy because of something his government may do; in India, such a prospect is very real. Solutions So what is the way out? Tackling overregulation — like the “number and location of spittoons” prescribed in the outmoded labour codes — should be a priority. A recent survey of 9,000 rms by LocalCircles, a New Delhi-based community engagement platform, showed that 68% of respondents had paid a bribe for property registration or transfer in the past year; and 62% had greased the palms of GST oicials. The law behind property registration in India goes back to 1899, while the goods and services tax has been in operation for less than a decade. And yet, when it comes to being avenues for graft, they now seem to be almost equally bad. I asked the industrial-machines entrepreneur if he had to pay any “extras” to register the Bangkok factory. Yes, a little bit, he said. But that’s where it stopped, whereas in India, ownership became the starting point for all kinds of negative surprises. For instance, he bought the land in India from a third party, which had won it in a bank auction after the previous occupant’s business went belly-up. But there’s a catch: an old, unpaid electricity bill from the same address. The utility is waving a 2023 judgment from India’s Supreme Court to ask the machinery business to pay those dues, which it should have collected from the auction winner. That’s another $200,000. The new owner has to pay a sizable chunk of the arrears to get reconnected, and then sue the seller to recover his loose It’s the little things that add up to a great unease. It leaves the jobless youth angry and factory owners struggling to compete.
Source: Economic Times
Starting February 1, 2024, import and export customs clearance in Bangladesh’s Ready-Made Garment (RMG) sector will require mandatory submission of certificates, licenses, and permits (CLP) through the Bangladesh Single Window (BSW) system. The Government has issued a directive stating that manual submissions of these documents will no longer be accepted after this date. This new requirement specifically affects several key organisations including those involved in the RMG industry, including the Directorate General of Drug Administration (DGDA), the Export Promotion Bureau (EPB), and the Department of Environment (DoE). These bodies oversee various aspects of compliance and regulation for the RMG sector, which is crucial to Bangladesh’s economy. The BSW system, implemented by the National Board of Revenue (NBR), is an online platform created to streamline the processing of CLP applications, enhancing efficiency for importers and exporters. Businesses operating in the RMG sector can register on the platform using their business identification number (BIN) and submit all necessary documents digitally. The Government emphasises that the BSW system will bring numerous benefits, including increased transparency and accountability through reduced human interaction, significant savings in time and costs for trade activities, and improved trust among both domestic and international businesses.
Currently, this initiative will involve seven out of the 19 organisations that issue CLPs, marking a significant step towards digitizing and modernizing the import-export process in Bangladesh’s vital RMG industry.
Source: Apparel Resource
On Dec. 19, 2024, the “Decree modifying the tariff on the General Import and Export Tax Law and the Decree for the Promotion of the Manufacturing, Maquila and Export Services Industry” (Decree) published in the Official Gazette of the Federation, through which the Mexican government seeks to establish two measures protecting domestic textile production.
Tariff Increases
Through the Decree, the Mexican government made temporary changes in the tariffs on several items included in the General Import and Export Tax Law, which will be effective until April 23, 2026. Such adjustments, which cover 155 items, correspond to the following chapters:
15% Tariff
Chapter 60 (knitted fabrics)
35% Tariff
These tariffs apply only to products originating in countries with which Mexico does not have free trade agreements.
Modifications to the IMMEX Program
The Dec. 19 Decree also changes the IMMEX Decree, adding new restrictions to Annex I, which lists “Goods that cannot be temporarily imported under the IMMEX program.” The IMMEX (Manufacturing, Maquiladora, and Export Services Industry Program) program is designed to promote the development of companies engaged in manufacturing and assembly activities for export purposes in Mexico. The changes to the Annex I affect several items under chapters 61, 62, and 63 of the General Import and Export Tax Law, with some exceptions. The government has also added other subheadings from this law to the restricted list.
Conclusion
The increase in tariffs on specific fractions of the textile industry, along with the addition of more restricted tariff items under the IMMEX program, could impact both importers and companies operating under IMMEX. Importers may face higher costs due to increased duties, which could affect their profit margins and competitiveness in the market. Similarly, IMMEX program participants might experience disruptions in their supply chains and increased operational costs, limiting their ability to efficiently import and export goods. These changes highlight the need for careful consideration of the potential consequences on trade and business operations.
Source: The National Law Review
AMMAN — A collective labour contract, signed on Thursday by the Jordan Garment and Textile Exporters Association, the General Union of Knitwear Owners, and the General Union of Workers in Textile Spinning, raising the minimum wage for workers in the spinning, weaving, and clothing industry from JD220 to JD230, effective January 1, 2025.
The agreement, signed under the patronage of Minister of Labour Khaled Bakkar, also includes an annual wage increase of JD5 for workers, according to the Jordan News Agency, Petra. In addition, transportation allowances for employees at companies that do not provide transportation will rise to JD25 per month. The signing ceremony was attended by key figures, including Vice President of the Jordanian Garment Exporters Association Sanal Kumar, President of the General Union of Textile Owners Mahmoud Hajjawi, his deputy Ihab Qadri, President of the General Union of Workers in Textile Spinning Fathallah Omrani, and Acting President of the General Federation of Jordanian Trade Unions Khaled Abu Marjoub.
Minister Bakkar highlighted the agreement's significance, noting that around 24,000 Jordanians employed in the sector will benefit from the new provisions, which include access to medical care through factory clinics, transportation allowances, and meal benefits offered by some employers. "Non-Jordanian workers in the sector will also benefit from these enhancements." Bakkar stressed the Ministry of Labour’s commitment to balancing the needs of both employers and workers, fostering direct cooperation between unions and employers to ensure workplace stability and boost economic productivity.
He also reiterated the ministry's ongoing efforts to localise development in rural and remote areas, creating job opportunities closer to residents' homes and reducing workforce migration to urban centres. President of the General Union of Workers in Textile Spinning Fathallah Omrani highlighted the positive impact of the wage increase on productivity and worker welfare. Omrani reiterated the union’s commitment to partnering with the Ministry of Labour and industry stakeholders to expand employment opportunities, enhance factory output, and boost export volumes, ultimately contributing to Jordan's economic growth.
Source: The Jordan Times
Frankfurt, Germany – The collection of “Character” towels offered by American Textile Industries is growing to encompass every holiday on the calendar – from Valentine’s Day to Christmas. The U.S.-based product development company is debuting the expanded range of the bath and kitchen towels at the Heimtextil international home textiles expo this week. The unique designs are woven and embroidered on 100% cotton fouta towels for kitchen and 100% cotton sheared velour hand towels for the bath. All towels are available in standard 16×26-inch size. Motifs for Christmas 2025 include Mr. and Mrs. Claus, a nutcracker, penguins, snowmen, gingerbread figures and other designs. The company also produces soft Character bins that can hold multiple towels. American Textile Industries is showing the “My Fur Buddy” collection of dog bath wraps that it introduced at New York Home Fashions last September. Designed to dry pet pooches quicker after baths, the wraps feature adjustable Velcro and snap enclosures designed to fit small- to medium-sized dogs that weigh between 10 lbs. to 30 lbs. American Textile Industries is showing in Hall 8.0, Booth A-17.
Source: Home Textiles Today
FAISALABAD: The cotton production has declined from 14 million bales to 10 million bales in 2024 that needs promotion of eco-friendly industrial hemp to safeguard the textile industry. It was stated by the speakers while addressing the inaugural session of three-day international stakeholder workshop and exhibition on Industrial Hemp Value Chain opened at the University of Agriculture Faisalabad. In the welcome address, UAF Vice Chancellor Prof Dr Muhammad Sarwar Khan called for mapping out a strategy to address challenges and explore opportunities in the industrial hemp value chain. He stressed upon the need for collaborative efforts on the part of experts, policy makers and industry. As the world continues to recognize the significance of hemp as a versatile and sustainable resource, the workshop will be a step forward in shaping its future in Pakistan. University of Kamalia Vice Chancellor Prof Dr Yasir Nawab said that Pakistan cotton’s decreasing production was creating an opportunity for sustainable fibres. Hemp and other locals have the great potential. He said that there is a need to develop quality fibers at reasonable cost. He said that Pakistan depends upon 70 percent on natural fiber and rest of the portion goes to synthetic fiber.
Director Soil Science UAF Dr Zahir Ahmad Zahir said that industrial hemp, as a diverse plant, can be a revolutionary crop for a better economy. It is an eco-friendly and worthwhile crop that complements a sustainable growth system. Industrial hemp farming has the potential to dramatically minimize the amount of carbon impact on the environment.
Source: Business Recorder
INDONESIA’S fragile garment industry may have to lay off hundreds of thousands of workers this year if the government is unable to rein in persistent dumping from China, an industry association official warned. Redma Gita Wirawasta, chairman of the Indonesian Filament Yarn and Fiber Producers Association, said on Wednesday that dozens of factories are at risk of shutting down as they struggle to compete with cheap Chinese-made clothing that has flooded the market in recent years. “We are getting information that some companies are starting to close their factories,” he said in an interview. Redma said he raised the concern with trade officials during a meeting on Tuesday in which industry leaders lobbied for raising non-tariff barriers including new labeling requirements and raising safety standards. “If the government doesn’t do anything to halt Chinese products into Indonesia, I think another 500,000 people will lose their jobs this year,” he said, offering an estimate nearly double that of the government’s. One of the nation’s biggest employers, Indonesia’s textile industry has struggled to compete with its regional neighbours, shedding some 80,000 jobs last year alone, according to one official estimate. Any widespread layoffs would further weigh on Indonesia’s economic momentum and derail President Prabowo Subianto’s target of pushing growth to 8% within his five-year term. Gross domestic product likely expanded 5% in 2024, according to a Bloomberg survey, below the government’s 5.2% goal. Part of the problem for textiles, Redma said, is the Southeast Asian nation’s ability to effectively restrict illegal products from entering at the ports. Prabowo last month went said his government might sink ships smuggling textiles onshore “if needed” as authorities try to help the ailing domestic textile industry. Indonesia has to contend with an extensive illegal market from China that Redma estimates averaged to about 1,000 containers reaching its shores every month. Much of the smuggled products are then sold sold on online platforms and in local markets. That, he said, has forced prices below production costs. These woes alongside weaker global demand and stiffer competition, have seen listed textile maker PT Sri Rejeki Isman furlough 3,000 workers, while PT Pan Brothers had to enter a deal to restructure more than $530 million in debt. Redma is also worried that any tariffs administered by the incoming Trump government could exacerbate the inflow of Chinese goods, further adding pressure to local companies. Coordinating Minister for Economic Affairs Airlangga Hartarto was quoted by a local media this week saying he hopes to strike a deal with the incoming Trump administration to lower tariffs for Indonesian goods. The closures “are happening from upstream to downstream — in the garment weaving sector, in spinning and also in the fiber sector,” Redma said. “It’s been very challenging.”
Source: The Malaysian Reserve
The 23rd Dhaka International Yarn & Fabric Show 2025 (winter edition) kicks off at the International Convention City Bashundhara (ICCB) in the city on Wednesday to showcase cutting-edge technologies in the textile and garment sectors. Participants called the event a platform for professionals in the textile and garment sector to explore innovations, foster partnerships, and connect with hundreds of exhibitors showcasing yarn, fabric, trims, and accessories. The event from 15 -18 January was organized jointly by CEMS-Global USA and CCPIT-Tex China. Mohammad Hatem, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said there was more than 85 per cent value addition in the knitwear sector, but it continued to go down day by day due to the policy of the last government. It now stands at 50-60 per cent. He feared it would be decreased further if policy support is not met. The garment industry has been struggling and facing immense pressure due to decreasing government support, he said. "Countries like neighbouring India, despite being LDC graduates, are providing necessary incentives to the RMG sector to encourage foreign investment and inviting foreign buyers, whereas the Bangladesh government continues to cut incentives and other facilities showing LDC graduation as a cause," Mr Hatem lamented. He urged BIDA to play a vital role in getting foreign investors and to solve the prevailing problems in the sector. He also requested the government to discuss with the sector stockholders before taking any policy decision which is required for the betterment of the industry. Mr Hatem urged China investors to invest in the country, certainly in the textile sector. Anwar Hossain, Vice Chairman of the Export Promotion Bureau (EPB) & Administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was present as the chief guest at the event. He said we know the banking sector is facing some problems which cause suffering to the industry. "We sat with the central bank governor and he assured us of helping out the crisis." He admitted that concerns arise over the recent announcement of a gas price hike among businesses to expense business, opening new entrepreneurship, and foreign investment. All they demand is a business-friendly environment, and the government has room to work on it along with the private sector. He emphasized backward linkage and non-cotton goods production to stop falling value addition in the textile sector. Dewan Muhammad Humayun Kabir, Secretary and Executive Member (Investment Ecosystem), Bangladesh Investment Development Authority (BIDA), also spoke at the event. Meherun N. Islam, President and Group Managing Director of CEMS-Global said that the expo is working as a bridge connecting Bangladeshi textile and apparel manufacturers with international supply chain manufacturers and suppliers. Over 325 exhibitors from 15+ countries are showcasing premium yarns, fabrics, trims, and accessories. Song Yang, Commercial Consulate and Zhang Jian, Secretary, The Embassy of China in Bangladesh, Zhang Tao, Vice President, China Council for the Promotion of International Trade (CCPIT-TEX), China also addressed the event.
Source: Financial Express
Synopsis India needs to bolster partnerships with Japan and South Korea to obtain high-quality components for electronics, solar panels, and EVs, aiming to reduce dependence on China amidst its export restrictions. These restrictions are viewed as part of a broader trade war strategy responding to India's curbs on Chinese investments and visas. New Delhi: India must strengthen partnerships with Japan and South Korea to source high-quality components for electronics, solar panels, and EVs to help cut reliance on China amid Beijing's restrictions on export of key inputs and machinery, think tank Global Trade Research Initiative (GTRI) said Thursday. Cautioning that China's export restrictions are part of a broader trade war strategy and its response to India's curbs on Chinese investments and visas, it said that Indian rms in electronics, solar, and EV sectors are facing delays and disruptions. "This also signals deeper geopolitical tensions and trade war. We hope Indiaspecic restrictions go away soon as they will also hurt China," GTRI founder Ajay Srivastava said. He added that while these measures impact India's electronics, solar, and EV sectors, they are also harmful to China's own manufacturing and exports. "Indian rms in electronics, solar, and EV sectors are facing delays and disruptions as China blocks exports of inputs and machinery," it said.
Source: Economic Times
