The Cabinet has approved a new income tax bill set to simplify the tax structure, which will likely be introduced in Parliament next week. Additionally, it sanctioned an ₹8,800 crore Skill India Programme and the reorganization of railway zones and divisions in Andhra Pradesh and Odisha to streamline operations and improve regional connectivity. The new bill will incorporate all tax-related changes announced in the budget, including income tax rates, slabs, and tax deducted at source (TDS) provisions, a finance ministry official said. The government has said the legislation will not add any new tax or increase the compliance burden.
Source: The Economic Times
India's exports are set to achieve a record USD 800 billion in the 2024-25 fiscal year, as Commerce and Industry Minister Piyush Goyal announced. Goyal also noted that certain imports are essential due to domestic shortages, and an increase in imports is indicative of rising domestic consumption, creating jobs and attracting investment. India's exports are growing significantly and would achieve a record USD 800 billion in 2024-25 fiscal year, Commerce and Industry Minister Piyush Goyal said on 7th February 2025. "Exports have been growing and have risen significantly in the last four years. This year also, there will be growth. We will end the year with over USD 800 billion exports for the very first time in India's history," Goyal said during Question Hour in the Rajya Sabha.
Source: The Economic Times
Synopsis Deputy Managing Director of EXIM Bank, Tarun Sharma, highlights the importance of the manufacturing sector in achieving India's aim of USD 2 trillion in goods and services exports by 2030. He emphasizes the need for significant investment in the textile sector and supports the announced changes in MSME classification criteria to drive growth. The manufacturing sector has to play a "very significant role" to realise India's aim to clock USD 2 trillion worth of goods and services exports by 2030, Deputy Managing Director of EXIM Bank Tarun Sharma said on Friday. Referring to the proposed changes in the classification criteria for micro, small and medium enterprises (MSMEs) announced in last week's Budget, he said India is still a "long way away" when we compare it to advanced nations. Speaking at an International Trade Conclave organised by the Bengal Chamber of Commerce and Industry here, Sharma outlined the USD 2-trillion target for goods and services exports in the next five years. He stressed that the domestic manufacturing sector has to play a very significant role if we need to realise the USD 2 trillion target for goods and services. Sharma also observed that India's textile sector, which is the largest employment creator after agriculture, has not grown at the pace it should have, and called upon Indian companies to invest more in capital expenditure to realise the sector's full potential and existing opportunities.
Source: Economic Times
The Budget announced an outlay of Rs. 5,272 crores for the Ministry of Textiles for 2025-26. This was an increase of about 19 percent over budget estimates of 2024-25 (Rs. 4417.03 crore) and is the highest in recent years. Budget for the Production Linked Investment Scheme for Textiles has been enhanced from Rs.45 crore (BE) in 2024-25 to Rs.1148 crore this year. Production-Linked Incentive (PLI) Scheme for textiles is being implemented to enhance India’s manufacturing capabilities and enhancing exports with an approved financial outlay of Rs 10,683 crore over a five-year period. It covers sunrise sectors like the Manmade made Fibre (MMF), MMF apparel and Technical textiles segment, to enable these sectors to achieve size and scale, to become globally competitive.
Union Budget 2025-26 has announced a ‘Mission for Cotton Productivity’. This 5-year mission will facilitate significant improvements in productivity and sustainability of cotton farming and promote extra-long staple cotton varieties. This mission would be jointly implemented by Ministry of Agriculture & Family Welfare (MoA & FW) and Ministry of Textiles.
Source: Rising Kashmir
The Rajasthan Cabinet chaired by Chief Minister Bhajanlal Sharma has approved a new textile and apparel policy. With a possible investment of over US $ 4.6 billion (Rs. 40,000 crore) in the state, this strategy will help the state’s textile producers and provide new job possibilities. The policy has also incorporated garment manufacturing for the first time, hoping to draw in US $ 1.14 billion (Rs. 10,000 crore) in investments and provide employment for 2 lakh people over the following five years.
Although traditional handloom and textile handicrafts continue to be prioritised, technology textiles are also being pushed due to their growing demand. Research and development incentives have been provided to produce high-performance textiles for particular uses.
Additionally, the program aims to support the development of greenfield private industrial parks for the production and processing of clothing and textiles. Incentives under the Rajasthan Private Industrial Park Scheme 2025 would be available to the parks. According to the Rajasthan Investment Promotion Scheme, the policy provides financial incentives, exemptions, and reimbursements, including reduced land prices.
Source: Apparel Resource
Nagpur: Maharashtra's textile minister Sanjay Savkare said the state's textile policy has increased the ease of doing business and is attracting investments at a healthy pace. Speaking at a special session on textile sector, organized as part of Advantage Vidarbha on 7th February 2025, Savkare said Maharashtra is promoting policies which help to enhance value addition for the entire product line. He said Amravati has emerged as a promising hub for the textile sector. "We have a concept of Mini Textile Parks, which could prove highly beneficial for small and medium enterprises. Textiles are one of the five key contributors to India's economy, and the state govt is committed to showcasing traditional textiles to boost sales and global recognition," Savkare said.
Source: Times of India
Switzerland-based UBS expects China's gross domestic product (GDP) growth to slow to 4 per cent this year and 3 per cent in 2026 under the baseline scenario, assuming that the United States hikes tariffs on China’s exports starting in September 2025 and China raises policy support in response. Its base case assumes a 60 per cent tariff hike on about three quarters of US imports from China, announced in Q1 2025, but implemented in stages between the third quarter (Q3) of 2025 and Q2 2026, although there is considerable uncertainty on the time, scale and magnitude of actual tariff increases.
It assumes only limited retaliation from China on targeted US products, and no blanket US tariff hikes on imports from the world.
Net exports will likely still contribute positively to GDP growth in 2025 in the country, but UBS expects exports to fall sharply in 2026, bearing down on manufacturing capital expenditure (capex) and prices. While China’s exports decline should be most acute in 2026, UBS thinks corporate capex will likely weaken notably already in 2025. Even after considering potential trade triangulation and supply chain shifts, it estimates the negative drag on GDP growth to be over 150 basis points. The multinational investment bank and financial services company expects additional fiscal expansion in 2025-26 to help alleviate local government financial challenges, support infrastructure investment and help to stabilise the property market in China. It expects the country’s consumer price index (CPI)-based inflation to weaken to 0.1 per cent this year and minus 0.2 per cent in 2026 along with a weaker growth, it said in an article on its website. UBS expects China to intensify policy support in FY26 to boost domestic demand. It thinks a tariff shock may trigger bigger support to household consumption, as well as more structural reforms.
The timing and magnitude of US tariff hikes may be different from UBS’ assumption, as well as the timing and size of China’s policy support. Tighter US tech restrictions and more aggressive decoupling measures could lead to further downside risk, it noted.
Faster implementation of structural measures and reforms in China would boost domestic confidence and the economy, UBS added.
Source: Fibre2fashion
Germany’s real new orders in manufacturing were up by 6.9 per cent month on month (MoM) in December last year after price, seasonal and calendar adjustment, according to provisional figures of the Federal Statistical Office (Destatis).
When large-scale orders are excluded, new orders were 2.2 per cent higher MoM.
New orders remained unchanged quarter on quarter (QoQ) in the fourth quarter (Q) last year, and new orders excluding large-scale orders were up by 1.4 per cent QoQ.
After revision of the provisional data, new orders in November 2024 decreased by 5.2 per cent MoM; the provisional figure was a drop of 5.4 per cent.
In 2024 as a whole, new orders were 3-per cent lower than in 2023 after calendar adjustment, a Destatis release said.
Source: Fibre2fashion
Vietnam’s trade surplus was $3.03 billion in January this year despite overall trade activity showing signs of contraction, according to the General Statistics Office.
Total import-export turnover reached $63.15 billion in the month—a 10.5-per cent drop month on month (MoM) and a 3.5-per cent decrease year on year (YoY).
The sector with foreign investment was the key driver of the trade performance, generating a surplus of $4.43 billion, while domestic firms posted a deficit of $1.4 billion, a domestic news agency reported.
Export revenue in January totalled $33.09 billion—a decline of 4.3 per cent YoY, with seven product categories logging $1 billion in value each, collectively accounting for 67.9 per cent of total exports.
The manufacturing and processing sector dominated the export structure, contributing 89 per cent of total export value.
Source: Fibre2fashion
Ho Chi Minh City – The 2nd annual edition of VIATT is positioning itself as a conduit for Chinese manufacturers seeking strategic investment opportunities in Vietnam.
The omnibus Vietnam International Trade Fair for Apparel, Textiles, and Textile Technologies (VIATT) expo drew more than 17,000 trade visitors to is inaugural showing last year. Fair organizers noted that in October 2024, China and Vietnam signed 10 agreements to enhance cooperation, ranging from an action plan for mutual recognition between customs agencies to cross-border QR code payments.
The 2025 edition will take place Feb. 26-28 at the Saigon Exhibition and Convention Center (SECC). Product categories will including apparel fabrics and accessories; yarns
and fibers; garments; home and contract textiles; technical textiles, nonwovens and equipment; and various certifiers and solutions providers.
The fair will feature dedicated country / region pavilions and zones from India, Japan, Korea, Pakistan, Taiwan and Thailand, as well as the new European Zone. European exhibitors will include manufacturers of home textiles, denim, apparel components, technical textiles, shirting, carpets and rugs.
Source: Home Textiles
China recently filed a complaint with the World Trade Organization (WTO) dispute settlement mechanism against the new US tariff measures on goods originating in the former.
Beijing claimed that the 10-per cent additional ad valorem duties applied on all goods originating in China, as well as measures with respect to the availability of drawback and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most favoured nation obligations and US tariff obligations under the General Agreement on Tariffs and Trade (GATT) 1994, the WTO said in a release.
The move is to safeguard China's legitimate rights and interests, the Chinese Ministry of Commerce said, alleging that the US imposition of additional tariffs on Chinese products is a serious violation of WTO rules, and the “egregious act is typical of unilateralism and trade protectionism”.
Source: Fibre2fashion
In 2024, the Kaka Textile Complex in Turkmenistan produced nearly 154.2 million manats worth of goods. The production process yielded over 3,150 tons of yarn, 15 million square meters of fabric, and more than 354,500 units of finished clothing, some of which were exported.
A key component of the complex is the quality control laboratory, which meticulously checks all characteristics of cotton fiber, including strength, thickness, and length.
The complex, which began operations on August 25, 2021, consists of four factories: spinning, weaving, dyeing-finishing, and sewing. The spinning factory has an annual production capacity of 3,650 tons of yarn made from cotton and blended fibers. Overall, the facility can produce 3,650 tons of high-quality yarn, 12 million square meters of fabric, and 1.2 million units of finished clothing each year.
Source: Fibre2fashion
A delegation from Turkmenistan, including representatives from the Chamber of Commerce and Industry and the Union of Industrialists and Entrepreneurs, visited Kuala Lumpur, the capital of Malaysia, from February 4 to 6, 2025. The visit aimed to expand cooperation in entrepreneurship and industry, as well as to strengthen bilateral trade ties, according to the press service of the Chamber of Commerce and Industry of Turkmenistan.
The visit of the Turkmen delegation continues a series of efforts that began in December 2024, when important agreements were signed during the official visit of Turkmen President of Turkmenistan Serdar Berdimuhamedov to Malaysia, opening new opportunities for deepening trade and economic partnership.
Source: Business Turkemenistan
