European Union (EU) companies operating in India want New Delhi to streamline or remove non-tariff barriers such as Quality Control Orders (QCOs), complex Customs procedures; simplify labelling, testing, and import procedures; and facilitate cross-border digital transactions without data localisation constraints.
These are results of a Business Sentiment Survey, 2025 conducted by the Federation of European Business in India (FEBI) ahead of resumption of negotiations for a free trade agreement (FTA) between both the sides scheduled to be concluded by year-end. “The EU-India FTA is expected to create a favorable business environment, ensuring a level-playing field for EU companies in India.
Source: Business Standard
The Tamil Nadu government is set to release an ‘enriched textile policy’ within the next week to ten days, signaling a strategic approach to revitalising the state's textile industry.
R. Gandhi, Minister for Handlooms and Textiles, announced this development during a press conference in Coimbatore on Tuesday, coinciding with the launch of a five-day Entrepreneurship Development programme focused on technical textiles. The state has demonstrated a proactive stance towards industrial growth, having already received 100 applications for mini textile parks and approved 17 to date, with 10 of these located in Karur. Previous policy initiatives include the removal of market cess for cotton in 2021 and relaxed regulations for mini textile parks to attract investments. The current entrepreneurship training program reflects a collaborative effort, with the Central government providing Rs 10,000 per candidate and the state government contributing an additional Rs 5,000. Financial support for the sector continues to be a key focus. The government plans to release Rs 10 crore this year as interest subsidy to enable spinning mills to modernise. Senthil Balaji, Minister for Electricity, further emphasised the state's commitment by announcing an increase in free electricity units for handloom and powerloom units. Industry experts are optimistic about the potential of technical textiles. A. Sakthivel, Chairman, Tiruppur Exporters Association, highlighted that while cotton garment production has reached saturation, the global market for technical textiles stands at an impressive USD 500 billion.
The current entrepreneurship development initiatives aim to encourage more participants to explore this promising sector. Looking ahead, T. Rajkumar, Former Chairman, Southern India Mills Association, indicated that an imminent announcement is expected from the Central government regarding approvals for the PM MITRA park in Virudhunagar, which is set to be established on 1,000 acres. This development underscores the ongoing efforts to strengthen Tamil Nadu's textile ecosystem and create new economic opportunities.
Source: KNN India
India's small engineering goods exporters have urged the government to cut import tariffs on some US goods to try and achieve more favourable trade terms as President Donald Trump prepares to implement new steel and aluminium duties, the head of an industry body said. The 25 per cent US tariffs on steel and aluminium imports, effective March 12, have raised Indian exporters' concerns about declining orders and rising costs.
"Of India's $20 billion annual engineering goods exports, nearly $7.5 billion worth of shipments could be affected," said Pankaj Chadha, chairman of the Engineering Export Promotion Council, which represents more than 10,000 small exporters. The EEPC and other industry chambers have urged the government to cut tariffs on select US goods with low inbound shipments, Chadha told Reuters on Wednesday.
They expect that lowering such tariffs could prompt the Trump administration to offer favourable terms and move forward with a proposed bilateral trade deal. Trump has labelled India a high-tariff country and warned of "reciprocal tariffs" from early April. India's trade minister Piyush Goyal is in the US for trade talks, aiming to negotiate potential tariff cuts as part of the proposed trade deal and to assess the impact of Trump's planned reciprocal tariffs India could, for instance, cut import duty on US steel scrap from 7.5 per cent to nearly zero, and reduce tariffs on nuts, castings and forgings while offering concessions on selected agricultural and manufacturing items, Chadha said. Exporters also fear that India's planned safeguard duty of up to 14 per cent on steel imports, aimed at protecting local steel manufacturers from cheaper Chinese imports, will drive up domestic prices and squeeze their margins. India's exports of engineering goods to the US jumped 18 per cent year-on-year in January to $1.62 billion, outpacing the sector's overall growth of 7.44 per cent ahead of the tariffs, EEPC data showed. From April 2024 to January 2025, the first 10 months of the fiscal year, engineering exports to the US rose by an annual 9 per cent to $15.6 billion, driven by an increase in shipments of aircraft parts, electrical machinery, automobiles, industrial machinery and medical instruments.
"The engineering industry faces major challenges, and the latest US tariffs add pressure. Continued government support in export credit and technology is crucial for competitiveness," Chadha said.
India's global engineering exports, which account for a quarter of total merchandise exports, rose to $9.42 billion in January from $8.77 billion a year earlier, though were lower than December's $10.84 billion. Cumulative exports for April-January rose 9.82 per cent year-on-year to $96.75 billion, EEPC data showed.
Source: Business Standard
Fashion for Good and The Microfibre Consortium have released ‘Behind the Break: Exploring Fibre Fragmentation,’ a report that provides insights for the textile and waste management industries on mitigating fibre fragment pollution. According to the report, this issue, which affects all textile types - not just synthetics - demands a comprehensive, industry-wide approach that integrates responsible manufacturing, waste treatment, and regulatory intervention.
Fibre fragmentation: a challenge for waste management
Fibre fragments are released throughout a textile’s lifecycle, during manufacturing, consumer use, and end-of-life disposal. These tiny fibres have been found in nearly every environment on Earth, from remote regions like the Arctic to Mount Everest, and have been documented in hundreds of species. Solutions needed “across the value chain”
Rather than seeking a single solution, the report advocates for a comprehensive portfolio approach including: Responsible textile design: Developing fabrics with lower propensity to shed through advanced yarn construction, processing techniques, and finishing Industrial-level filtration: Implementing advanced air and water filtration systems into manufacturing facilities Consumer-level interventions: Promoting washing machine filters, behavioral changes in laundry practices, and public awareness campaigns
Innovation: Supporting development of new technologies while evaluating their complete environmental impact.
Effluent treatment plants (ETPs) play a crucial role in the report’s plan to prevent fibre fragment pollution. It underscores the importance of advanced filtration methods such as ultrafiltration membranes, which capture fibre fragments from wastewater. However, high costs and energy requirements pose challenges for widespread adoption, particularly among smaller textile manufacturers. More affordable alternatives, such as secondary clarifiers, which are sedimentation tanks used in wastewater treatment processes, can still yield significant reductions in fibre pollution when properly maintained. Katrin Ley, Managing Director of Fashion for Good added: “Fibre pollution is a challenge that the industry faces as a whole, so we are partnering with The Microfibre Consortium to contribute to the foundation of data that will help us better understand the root causes of fibre fragmentation.” The report also notes that, despite growing awareness of fibre pollution, progress on regulatory intervention remains limited. It calls for policy to address all fibre types, not just synthetics, and all stages of the textile lifecycle beyond just consumer use, such as through extended producer responsibility (EPR) frameworks.
Source: Resource.co
US retaliatory tariffs would kick in from April 2 against nations charging higher duties on American exports, President Donald Trump announced yesterday. These nations include China and India. In his address to the joint session of Congress, Trump called tariffs charged by India and other countries, including China, ‘very unfair’. Trump said he wants to impose the same tariff on imports from foreign countries as those nations impose on US exports. "Other countries have used tariffs against us for decades and now it's our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada—have you heard of them—and countless other nations charge us tremendously higher tariffs than we charge them. It's very unfair," Trump said Tuesday night in the longest address to the Joint Session of the Congress. "India charges us auto tariffs higher than 100 per cent China's average tariff on our products is twice... and South Korea's average tariff is four times higher. Think of that, four times higher. And we give so much help militarily and in so many other ways to South Korea. But that's what happens. This is happening by friend and foe. This system is not fair to the United States. It never was," he was quoted as saying by global media reports.
His administration would also retaliate to non-monetary tariffs with ‘non-monetary barriers’, Trump said.
"They don't even allow us in their market. We will take in trillions and trillions of dollars that create jobs like we have never seen before. I did it with China, and I did it with others, and the Biden administration couldn't do anything about it because there was so much money, they couldn't do anything about it," he said.
"We have been ripped off for decades by nearly every country on Earth, and we will not let that happen any longer," he added.
Higher tariffs on Indian exports like textiles would make these products more expensive in the United States, reducing demand, which may hurt Indian manufacturers and exporters and raise prices for American consumers.
The announcements came after the United States decided to impose 25-per cent tariffs on its neighbouring countries and two of its biggest trade partners, Mexico and Canada.
The United States also doubled tariffs on Chinese goods from 10 per cent to 20 per cent, citing lack of action from China on its alleged role in fentanyl production and exports.
Source: Fibre2fashion
Five major themes are expected to impact the global textile and clothing industry in the next few years, namely: the rise of artificial intelligence (AI), digitalization and automation; circularity; fibre options, fibre sorting and textile recycling; energy savings and financing; and the European Green Deal and its implications. These themes were debated during a series of ITMA connect webinars organised by CEMATEX, which comprises nine national European textile machinery associations and owns the world’s largest textile and garment technology exhibition, ITMA (International Exhibition of Textile Machinery).
On the topic of artificial intelligence (AI), digitalisation and automation, it was agreed that digitalisation of product development, for instance, has already streamlined many operational practices and it was noted that advances in digital technology and tightening legislation could force the industry to move to a near-shoring on-demand production model. On the topic of circularity, it was revealed that Indorama is investing in key new technologies which are ready to be scaled, notably an enzymatic PET recycling plant in France and biotransformation technology which alters the properties of polyolefin feedstocks in order to make them biodegradable. On the topic of fibre options, fibre sorting and textile recycling, it was noted that many fibre blends can cause difficulties when it comes to the recycling of post-consumer textile waste and it was suggested that these difficulties can be avoided if conscious decisions are made at the design stage to embrace monomaterial design principles. However, some complex fibre blends are crucial in providing a range of necessary functions and a number of major textile and clothing companies are responding by using recycled and bio-based fibres in order to pursue sustainability and circularity objectives.
On the topic of energy savings and financing, it was noted that some textile manufacturers are focusing their efforts on energy-saving projects in order to make gains in terms of environmental sustainability. Such projects show potential for being effective in the industry’s major manufacturing hubs in Asia - and technical help and financing are becoming increasingly available to realise such projects.
Source: Innovation in Textiles
The National Council of Textile Organizations (NCTO) has expressed concerns over the Trump administration’s decision to impose new tariffs on imports from Mexico and Canada, warning that the move could severely impact the North American textile and apparel supply chain.
NCTO president and CEO Kim Glas issued a statement, cautioning that the tariffs could disrupt a critical supply chain supporting nearly 500,000 American jobs and 1.6 million jobs across North America. Glas highlighted the potential for destabilisation in the sector, linking the policy shift to economic concerns and broader geopolitical issues such as migration and the fentanyl crisis. “The newly imposed tariffs on imports from Mexico and Canada threaten a crucial textile and apparel coproduction chain with our two valued trade partners. Destabilising this production chain coupled with the de minimis loophole will only exacerbate migration and the fentanyl crisis.”
The NCTO emphasised the importance of the United States-Mexico-Canada Agreement (USMCA) in supporting the domestic textile industry. The US textile sector exports $12.3 billion in goods to Mexico and Canada annually—53 per cent of total global exports—with materials returning as finished products to American markets under the trade agreement. The NCTO warned that disrupting this $20 billion two-way trade could inadvertently benefit China and other Asian manufacturers, whose supply chains operate under different regulatory frameworks.
“For these reasons, we are extremely concerned that the imposition of penalty tariffs on imports from our critical USMCA partners will only serve to benefit China and other Asian countries and harm the US textile industry, which has lost 27 plants in the past 20 months,” Glas stated.
While raising concerns over tariffs on Mexico and Canada, the NCTO welcomed President Trump’s move to increase penalties on Chinese imports, encouraging even higher tariffs specifically on finished apparel and textile products. The organisation claims these measures would help counteract China’s alleged unfair trade practices, including forced labour, state subsidies, and counterfeiting.
In addition to tariff adjustments, the NCTO urged the administration to close the de minimis loophole. The group argues that this loophole is being exploited to flood American markets with illicit goods, counterfeit textiles, and even illegal narcotics, including fentanyl.
“Raising tariffs on countries without closing this destructive loophole will only serve to drive more shipments to the duty-free de minimis loophole. Incentivising greater use of de minimis will further harm US manufacturers and exacerbate the fentanyl crisis,” Glas warned in the statement.
Despite concerns, the NCTO reaffirmed its willingness to work with the administration to shape trade policies that support US manufacturing and employment. The organisation urged a balanced approach that promotes domestic investment while protecting key trade relationships.
“This is a pivotal moment for the domestic textile industry, and we believe the right policies will preserve and bolster this vital manufacturing base and spur more job creation and investment,” Glas concluded.
Source: Fibre2fashion
Synopsis Falling US cotton prices due to China's retaliatory tariffs may boost demand for Indian garments, textiles, and yarn. The industry anticipates cheaper US cotton and reduced Chinese competitiveness will help India expand its market share in the US and Europe. Increased imports of superior US cotton could benefit Indian textile manufacturers and exporters, leading to better profit margins. Falling prices of the US cotton due to China's retaliatory tariffs could boost export demand for Indian garments, textile and yarn. The industry expects increased availability of the superior quality US cotton at cheaper rates and reduced competitiveness of Chinese textile exports due to the retaliatory tariff would help India increase its share in the US and European markets, the industry expects. US cotton prices fell to their four-year lows after China imposed retaliatory.
Source: Economic Times
Australia’s gross domestic product (GDP) rose by 0.6 per cent in the fourth quarter (Q4) last year and by 1.3 per cent through the year (seasonally adjusted, chain volume measure), according to figures released recently by the Australian Bureau of Statistics (ABS). GDP per capita grew by 0.1 per cent in the quarter following seven consecutive quarters of falls. “Modest growth was seen broadly across the economy this quarter. Both public and private spending contributed to the growth, supported by a rise in exports of goods and services,” Katherine Keenan, ABS head of national accounts, said in a release from the Bureau. Household spending was up by 0.4 per cent in Q4 2024 after a flat result in Q3. Household discretionary spending rose as people made the most of retail sales events; private investment rose by 0.3 per cent in the quarter; and public investment rose by 1.8 per cent, Keenan said. Growth in government spending moderated to 0.7 per cent in the quarter following larger rises in preceding quarters. Exports of goods was flat. Nominal GDP rose by 1.6 per cent in the quarter, reflecting a 1-per cent rise in the GDP implicit price deflator. The data shows private sector weakness has continued in spite of the uplift in headline GDP, Innes Willox, chief executive of the national employer association Ai Group said. "Unfortunately, there is little to suggest that the poor business conditions facing many industries over the last year have turned a corner. Most indicators of private sector activity remain weak, and the economy's dependence on government spending has continued,” he noted in a release. "Volatility for business is only increasing, hampering hopes for a long run recovery," Willox added.
Source: Fibre2fashion
In response to ‘unjustified’ US tariffs, Canada announced yesterday its decision to move forward with 25-per cent tariffs on $155 billion worth of imported goods from the United States, beginning immediately with a list of goods worth $30 billion. The announcement was made by Minister of Finance and Inter-Governmental Affairs Dominic LeBlanc and Minister of Foreign Affairs Melanie Joly. The scope of the Canadian counter tariffs will be raised to $155 billion if the current US tariffs are maintained. The scope could also be increased if new tariffs are imposed, an official release from the Canadian Department of Finance said. The first phase of Canada's response includes products like appliances, apparel, footwear, motorcycles, cosmetics and certain pulp and paper products. The government is also taking steps to mitigate the impact of these countermeasures on Canadian workers and businesses by establishing a remission process to consider requests for exceptional relief from the tariffs imposed as part of our response to the US applying ‘unjustified’ tariffs on Canada, the release said. “The tariffs imposed by the US administration are unjustified, and detrimental to both Americans and Canadians. Working with provincial, territorial and industry partners, our singular focus is to get them removed as quickly as possible. While we urge the US administration to reconsider their decision to impose tariffs, Canada will remain firm in standing up for our jobs, our industries, and our workers,” the release added. The 25-per cent tariffs that came into force yesterday on $30-billion worth US imports include handbags containing textiles, leather or composition leather; apparel and clothing accessories; handkerchiefs, cleansing or facial tissues and towels; tablecloths and serviettes; sacks and bags; carpets and other textile floor coverings of textile, coconut fibre, wool or fine animal hair; graduated compression hosiery; and innerwear.
Source: Fibre2fashion
Japanese manufacturing production fell further midway through the first quarter (Q1) this year, though both output and new order inflows decreased at softer rates, according to au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) data.
The pace of reduction was only modest, but often attributed to weak sales and confidence in domestic and overseas markets, S&P Global Ratings said in a release.
The subdued manufacturing performance was also reflected in a broad stagnation in employment levels and solid falls in purchasing activity and backlogs of work.
Input costs continued to rise at a robust rate that was the joint-strongest since last August (with December 2024).
In response, manufacturers raised their selling prices at a faster rate. Posting 49 in February, the headline au Jibun Bank Japan manufacturing PMI rose from 48.7 in January to indicate a softer deterioration in the health of the sector.
The latest contraction reflected further, albeit slower, declines in the intermediate and investment goods sectors, the release noted.
Business conditions improved modestly across the consumer goods segment. Factory output fell for the sixth successive month during February. The reduction eased month on month and was only modest overall.
Where a decline was signalled, survey participants commented on weaker new orders, while there was also evidence that firms had excess inventories. As such, stocks of finished goods were also depleted further and at the strongest rate for a year.
Overall new orders fell again in the latest survey month, extending the current sequence that began in June 2023. Demand retrenchment and weak client confidence were cited as the key factors behind the fall, notably in external markets.
Manufacturers noted a slightly sharper decline in new export business in February, with particular emphasis on muted demand in the United States and China.
Source: Fibre2fashion
Mexico will hit back at President Donald Trump's tariffs with retaliatory duties of its own, President Claudia Sheinbaum Pardo announced yesterday, saying the details would be announced later.
She accused Washington of publishing "an offensive, defamatory and unsupported statement," after the White House alleged in its tariff announcement that the Mexican government had "afforded safe havens for the [drug] cartels."
The targeted products and other measures will be announced on March 9. The Mexican President said the government is ‘going to wait’ as she plans to speak to Trump this week.
Reiterating that there was ‘no reason or justification’ for Trump to hit Mexico with 25-per cent tariffs despite its collaboration in efforts to tackle drug smuggling, she said: "I want to make it clear today that we will always seek a negotiated solution as we have proposed within the framework of respect for our sovereignty."
"But the unilateral decision taken by the United States affects national and foreign companies that operate in our country and affects our people. Therefore, we have decided to respond with tariff and non-tariff measures," she was quoted as saying by global media reports.
Source: Fibre2fashion
