India is ranked among the top textile exporting countries in the world with a share of approximately 4 per cent of global textiles and apparel exports, according to information tabled in Parliament on Friday
The export of Textiles and Apparel, including Handicrafts, increased by 7 per cent in April-December 2024 compared with the same period of the previous year with the US, the EU and the UK accounting for a 53 per cent share in total exports in FY 2023-24, Minister of State Minister of State for Textiles Pabitra Margherita said in a written reply in the Lok Sabha. The government is implementing various schemes to promote Indian textiles. The major initiatives include PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme to create a modern, integrated, world-class textile infrastructure; Production Linked Incentive (PLI) Scheme focusing on MMF Fabric, MMF Apparel and Technical Textiles to boost large-scale manufacturing and enhancing competitiveness; National Technical Textiles Mission focusing on Research Innovation and Development, Promotion and Market Development; SAMARTH - Scheme for Capacity Building in Textile Sector with the objective providing demand-driven, placement oriented, skilling programme. Silk Samagra-2 for comprehensive development of the sericulture value chain and the National Handloom Development Programme for end-to-end support for the handloom sector have also helped to promote exports. Besides, the Ministry of Textiles is also implementing the National Handicrafts Development Programme and Comprehensive Handicrafts Cluster Development Scheme for the promotion of handicrafts, the minister said. The Indian textiles industry is one of the largest in the world with a large raw material base of natural fibre, including cotton, silk, wool, and jute as well as manmade fibre and manufacturing strength across the value chain from fibre to fabric to garments, he pointed out. With a view to ensuring a consistent supply of cotton in the country and having a sustained interest of farmers in cotton cultivation, the Government of India is declaring a Minimum Support Price (MSP) of cotton every year. This mechanism ensures that farmers receive a fair remunerative price for their produce in the event market prices of cotton fall below the MSP rates and also facilitates the availability of cotton at competitive prices, the minister said. He also pointed out that the customs duty on Extra-Long Staple (ELS) Cotton has been reduced to nil with effect from February 20, 2024. Under the India-Australia ECTA, 51,000 tonnes of duty-free ELS Cotton can be imported.
Source: The Economic Times
Synopsis India will request an exemption from US reciprocal tariffs during trade negotiations with US officials this week. Discussions will focus on forming a bilateral trade agreement. India has already reduced some import taxes and is considering further reductions to meet US concerns. India's government will seek an exemption from President Donald Trump’s reciprocal tariffs when US officials arrive in the country Tuesday for talks over a bilateral trade agreement, people familiar with the matter said. Brendan Lynch, US assistant trade representative for South and Central Asia, and a team of officials will visit India from March 25-29 as part of ongoing trade discussions, the US embassy in New Delhi said in a statement Monday. Officials in New Delhi are expected to make the case for a reprieve from reciprocal tariffs, which are scheduled to take effect on April 2, people familiar with the matter said, asking not to be identified because the discussions are private. The two sides are expected to discuss a framework for a bilateral trade deal, after which formal negotiations would start, they said. Aside from trade officials, Lynch is also likely to meet Vikram Misri, India’s foreign secretary, during the visit, one of the people said. “We look forward to productive and constructive discussions with the incoming US delegation to expand and deepen our bilateral trade and economic ties in a mutually beneficial manner,” India’s Ministry of Commerce and Industry said in a statement. India has one of the highest average tariff rates among major economies, making it a key target of Trump’s reciprocal duties. The US president has frequently cited India’s import taxes as unfair to American businesses and said as recently as last week that the country wouldn’t avoid being hit by the like-for-like duties. Since Trump took office, Modi’s government has taken several steps to appease the US leader around his key concerns of trade and immigration. Modi visited the White House in February, where the two leaders agreed to boost trade and work toward a bilateral agreement by November. They also discussed India buying more energy and weapons from the US. India has already lowered imported taxes on a range of goods, including bourbon whiskey and high-end motorcycles, such as those made by Harley Davidson Inc. Indian officials are considering reducing tariffs on a range of other goods, including automobiles, some agricultural products and chemicals, Bloomberg News previously reported. The US embassy said Monday the visit by Lynch reflects Washington’s commitment to advancing its trade relationship with India. “We value our ongoing engagement with the government of India on trade and investment matters and look forward to continuing these discussions in a constructive, equitable, and forward-looking manner,” it said in the statement.
Source: The Economic Times
According to a written reply in Lok Sabha by the Ministry of Textiles on Friday, textile and apparel exports, including handicrafts, grew by 7% from April to December 2024 compared to the same period the previous year. India continues to rank among the world's leading textile-exporting nations, holding a 4% share in global textiles and apparel exports. According to a written reply in Lok Sabha by the Ministry of Textiles on Friday, textile and apparel exports, including handicrafts, grew by 7% from April to December 2024 compared to the same period the previous year. The USA, European Union, and UK remained key markets, accounting for 53% of total exports during FY 2023-24. To further boost the sector, the government has launched several initiatives, including the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme, aimed at developing world-class textile infrastructure. The Production Linked Incentive (PLI) Scheme, focusing on MMF fabric, apparel, and technical textiles, seeks to drive large-scale manufacturing, while the National Technical Textiles Mission promotes research and market expansion. The SAMARTH program continues to provide skill development for job-oriented training in the industry. India’s textile sector benefits from a strong raw material base, including cotton, silk, wool, jute, and man-made fibres. To ensure a steady supply of cotton and encourage cultivation, the government sets a Minimum Support Price (MSP) annually. Additionally, the custom duty on Extra-Long Staple (ELS) cotton was reduced to zero from February 20, 2024, facilitating duty-free imports under the India-Australia Economic Cooperation and Trade Agreement (ECTA). With 14 Free Trade Agreements (FTAs), including deals with the UAE, Australia, and EFTA, alongside six Preferential Trade Agreements (PTAs), India continues to enhance its textile export potential. Schemes like Rebate of State and Central Taxes and Levies (RoSCTL) and Remissions of Duties and Taxes on Exported Products (RoDTEP) further support the industry by ensuring competitiveness and promoting zero-rated exports.
The National Technical Textiles Mission (2020-2026) is spearheading research in specialty fibres, geotextiles, medical textiles, and biodegradable textiles using natural fibres like milkweed and bamboo. Innovation challenges led by the Ministry of Textiles, in collaboration with Startup India and DPIIT, have supported startups working on textile waste recycling and bio-based fibre production.
To protect domestic producers, the government has imposed a Minimum Import Price (MIP) of USD 3.50 per kg on certain knitted fabric categories and revised custom duties on select HSN codes in the latest budget. Additionally, Quality Control Orders (QCOs) have been implemented to curb the import of low-quality fabrics and safeguard the domestic market.
Source: Pratidin Time
Keeping in view India's vision of becoming 'Atmanirbhar', Production Linked Incentive (PLI) Schemes for 14 key sectors are under implementation to enhance India's Manufacturing capabilities and Exports. The impact of PLI Schemes has been significant across various sectors in India. These schemes have incentivized domestic manufacturing, leading to increased production, job creation, and a boost in exports. They have also attracted significant investments from both domestic and foreign players. As on date, 764 applications have been approved under PLI Schemes for 14 key sectors. 176 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles & Drones. Actual investment of around ₹ 1.61 lakh crore (US$ 18.72 billion) has been reported till November 2024 which has generated Production/ Sales of around ₹ 14 lakh crore (around US$ 162.84 billion) against targets of 15.52 lakh crore up to FY 2024-25 and Employment of over 11.5 lakhs (Direct & Indirect). PLI Schemes have transformed India’s exports basket from traditional commodities to high value-added products such as electronics & telecommunication goods, processed food products etc. PLI Schemes have witnessed exports surpassing ₹ 5.31 lakh crore (around US$ 61.76 billion), with significant contributions from sectors such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom & Networking products.
Incentive amount of around Rs. 14020 crore disbursed under PLI Schemes for 10 Sectors viz. Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, White Goods, Automobiles & Auto components and Drones & Drone Components. Individual cases have been approved over a period of time, through a transparent mechanism. Projects are implemented over a period of time ranging from 2 years to 3 years, depending on the nature of manufacturing and claims are usually made after 1st year of production. Hence, most of the projects are at implementation stage and will be filing incentive claims in due course. In the PLI scheme for specialty steel, about ₹20,000 crore of investments have been made by companies out of ₹27,106 crore committed and these projects have given a direct employment of 9000. Incentive of ₹48 crore has been released to the industry so far. The Ministry of Steel estimates that an incentive of ₹2,000 crore will be disbursed by the end of the scheme tenure. 14 of 58 projects withdrew from the scheme either because of change in business plans of the company and project execution delays. It may be worth noting that as many as 35 companies have shown interest in the second round of the PLI scheme for specialty steel. A further commitment of ₹25,200 crore investment has been committed by these companies. The Ministry of Steel is in the process of selection and signing MoUs with these companies. An incentive of ₹3,600 crore is estimated to be disbursed to these projects. Under the PLI Scheme for the Food Processing Industry, the deadline for filing claims is November 30 for Millets and December 31 for other categories. Most approved beneficiaries submit their claims in the second half of December, after which they are processed, and disbursements occur between January and March. Therefore, assessing incentive disbursements between April and October does not provide an accurate representation. For the FY 2022-23 claim year, an incentive of ₹474 crore has been disbursed. For FY 2023-24, the disbursement target is ₹700 crore, which is on track to be achieved. The PLI Scheme for the Food Processing Industry (PLISFI) currently has 171 active beneficiaries across all categories. Given this large number, the withdrawal of six beneficiaries is not significant. Moreover, these applicants withdrew primarily due to their inability to meet their committed investment or expenditure on Branding & Marketing abroad.The PLI Scheme has created immense impact across sectors and areas of the economy:
Strengthening India’s position in Global Value Chains: India is now a part of key global value chains instead of being an importer of advanced/intermediate products and components.
Under the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices, 19 green-field projects have been commissioned and production of 44 products including high end medical devices such as Linear Accelerator, MRI machines, CT-Scans, Mammograms, C- Arms, Ultrasound machines etc., which were previously imported into the country has started.
84 companies under the PLI Scheme for White Goods (ACs and LED Lights) are set to bring investments of ₹ 10,478 crore, strengthening domestic capacity in AC and LED segment. For ACs, the selected companies will be manufacturing components like, compressors, copper tubes among others.
Similarly, for LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems and Metallized films for capacitors etc. will be manufactured in India instead of being imported.
Promoting Domestic Industry: More companies are setting up manufacturing units in India, including MSMEs and startups.
The drone sector has experienced rapid growth, with turnover increasing seven-fold under the PLI scheme for Drones Drone Components. Driven by MSMEs and startups, this success has attracted significant investments and job creation, positioning India as a global leader in drone manufacturing.
India has achieved 60% import substitution in telecom products under the PLI scheme for Telecom & Networking Products. Global tech companies have set up manufacturing units, turning India into a major exporter of 4G and 5G telecom equipment.
Boosting Exports and Reducing Imports: India is progressing towards its goal being an advanced industrial, manufacturing-led economy and becoming self-reliant.
India’s electronics manufacturing sector has flourished under the PLI scheme, transforming from a net importer to a net exporter of mobile phones.
India’s position in the global pharmaceuticals market has expanded and it is the third-largest player by volume. Exports now account for 50% of production, and the country has reduced reliance on imports by manufacturing key bulk drugs like Penicillin G.
The purpose of the PLI Schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive. These schemes have the potential of significantly boosting production, increasing manufacturing activities and contributing to economic growth over the next five years or so.
PLI Scheme is to give a kick start and to lay the foundation for creating a manufacturing ecosystem. All the approved sectors identified under PLI Schemes follow the broad criteria of focusing on key technologies where India can leapfrog and multiply employment, exports and overall economic benefits for the economy. These sectors were approved after vetting by NITI Aayog and after detailed deliberations with concerned Ministries/ Departments.
Source: PIB
India and Singapore on Tuesday signed a Letter of Intent (LoI) for Green and Digital Shipping Corridor (GDSC), with a focus on digitalisation and decarbonisation. The Singapore-India GDSC, when established, will enhance collaboration from both countries and help accelerate the development and uptake of zero or near-zero GHG emission technologies and the adoption of digital solutions, a joint release from Maritime and Port Authority of Singapore and Ministry of Ports, Shipping said.
The minister of Ports, Shipping and Waterways Sarbananda Sonowal said his visit to Singapore with a high-level marine sector delegation will strengthen the long-standing relationship. Moreover, the "Comprehensive Strategic Partnership" will deepen and broaden cooperation between the two countries, he noted. Sonowal is on a three-day visit to Singapore and is attending the maritime week which is expected to see participation from 20,000 delegates and exhibitors from around the world. Under the LoI, both sides will collaborate on maritime digitalization and decarbonization projects, including identifying relevant stakeholders who could contribute to the effort, and work towards formalising the partnership through a memorandum of understanding on a Singapore-India GDSC. The LoI was signed by R Lakshmanan, Joint Secretary in the MoPSW and Waterways and Teo Eng Dinh, Chief Executive of the Maritime and Port Authority of Singapore. The LoI signing in Singapore was witnessed by Amy Khor, Senior Minister of State of Sustainability and the Environment of Singapore and Minister of Ports, Shipping and Waterways Sarbananda Sonowal. Since 2022, the GDSC has grown to include over 28 stakeholders across the maritime, energy and finance value chains. "These initiatives reaffirm Singapore's commitment to working with like-minded partners to advance maritime digital innovation and decarbonisation," Khor said at the signing of LoI on the second day of the Singapore Maritime Week.
The maritime week is being held from March 24-28, 2025.
"India is a leading player in information technology with the potential to become a major producer and exporter of green marine fuels," the release said, adding that Singapore, as a key trans-shipment and bunkering hub, also supports a dynamic research and innovation ecosystem.
Source: Business Standard
India is estimated to contribute 6 per cent to global trade growth over the next five years, according to the 'DHL Trade Atlas 2025' report, jointly published by New York University’s Stern School of Business and German logistics brand DHL.
The report, which gives an analysis of trade patterns for nearly 200 countries and territories worldwide, states that India’s share in global trade expansion will follow that of China, which is expected to contribute 12 per cent, and the United States, projected at 10 per cent. “India also stands out as the country with the third-largest absolute amount of forecast trade growth (6 per cent of additional global trade), behind only China (12 per cent) and the United States (10 per cent),” said the report. It noted that globally, trade growth has continued to show resilience amid geopolitical tensions and trade policy uncertainty.
According to the report, India is expected to retain its third spot on the scale dimension, which it achieved due to "its trade growth was much faster than other large economies." India is also expected to rise to 17th place on the speed dimension metric, up from its current position at 32. The report highlights that while India was ranked only as the 13th largest participant in international trade in 2024, its trade volume grew at a compound annual rate of 5.2 per cent between 2019 and 2024, significantly outpacing the global trade growth rate of 2.0 per cent during the same period. "India's rapid trade growth reflected both its swift macroeconomic growth and its increasing participation in international trade. While China is often viewed as a more trade-oriented economy than India, India’s goods trade-to-GDP ratio was almost as high as China’s in 2023, and India’s trade intensity exceeded China’s when considering trade in both goods and services," the report states. On future global trade growth leaders, the report states that during the next five years, India, Vietnam, Indonesia, and the Philippines are forecasted to rank among the top 30 for both speed and scale of trade growth. Speaking to news agency ANI, RS Subramanian, SVP South Asia, DHL Express, said, "The Trade Atlas underlines India's rapid expansion in global trade, positioning the country as a critical hub connecting the East and West. While we anticipate trade volume growth and an increase in global trade share, we remain cautiously optimistic about the future given the global economy's general volatility."
Source: Business Standard
The US is committed to advancing a “productive and balanced” trade relationship with India, a spokesperson for its embassy in New Delhi said Monday, ahead of trade talks and the April 2 rollout of reciprocal tariffs, which American President Donald Trump suggested could have “flexibility” in implementation. Brendan Lynch, assistant US trade representative (USTR) for South and Central Asia, will lead a team of US officials on a five-day visit to India starting March 25 for bilateral trade discussions, the spokesperson said. The talks are expected to hammer out the details of the proposed bilateral trade.
Source: Business Standard
Bangladesh's textile industry, which accounts for 84% of the country's foreign exchange earnings, is facing a crisis. Ananta Jalil, a prominent businessman, accused interim chief adviser Md Yunus of forcefully shutting down the sector, resulting in massive job losses. The lack of support during Ramadan and ahead of Eid has worsened the situation, potentially leading to an economic collapse. The textile industry in Bangladesh - the country's biggest foreign exchange earner - is staring at its worst crisis in recent years exacerbated by abysmal support from the interim regime in Dhaka. Ananta Jalil, a prominent Bangladeshi entrepreneur dealing in readymade garments, alleged earlier this week that the Bangladeshi economy might collapse soon, as chief adviser Md Yunus is forcefully shutting down the garment sector. Addressing a public forum, Jalil claimed that millions of workers have been rendered jobless and that Bangladesh's garment-related businesses are losing their market worldwide. Jalil claimed that Yunus is eliminating all incentives for the garment industry, particularly during the Ramadan period and ahead of Eid. This was one of the rarest outbursts from a leading Bangladeshi businessman since the ouster of Prime Minister Sheikh Hasina last August. Bangladesh's garment industry contributes as much as 84% of its foreign exchange earnings annually. The industry is also a major employer - more than 4 million people directly and nearly 15 million indirectly - with a major share of women.
Source: The Economic Times
The European Commission has taken a significant step to bolster Europe's position in technology and sustainability by launching three new partnerships focused on advanced materials, textiles, and photovoltaics.
These collaborations, which are part of the Horizon Europe framework, aim to bolster growth, sustainability, and resilience, thereby contributing to a robust, inclusive, and internationally competitive European landscape.
Outlined as critical components in the Strategic Plan for Horizon Europe covering the years 2025 to 2027, these partnerships include:
European Partnership for Textiles of the Future: This partnership is set to spearhead the transformation of the textile sector towards more sustainable and circular practices, in line with the EU Strategy for Sustainable and Circular Textiles.
It will capitalise on digital innovation and novel business models to maintain and improve Europe’s strategic independence in this domain. The goal is to preserve the industry’s competitiveness and sustainability amid a dynamic international market.
A joint investment of up to €60m($64m), split equally between the commission and private partners from 2025 to 2030, has been earmarked for this partnership.
European Commission prosperity and industrial strategy executive vice president Stéphane Séjourné said: “Today, we take another important step forward in our commitment to strengthen Europe’s industrial landscape. Our new partnership on the future of textiles brings together the commission and industry to drive technological progress and sustainability across the sector. This initiative will accelerate the transition toward a stronger, more competitive and sustainable European textile industry.”
European Partnership for Innovative Advanced Materials for the EU: This partnership aligns with the Communication on Advanced Materials for Industrial Leadership, aiming to reinforce technological sovereignty and industrial competitiveness in the realm of advanced materials.
It is designed to meet industrial demands by expediting the design, development, and commercial integration of safe, sustainable advanced materials and related technologies that are suitable for a circular economy.
Investments planned by both the commission and private stakeholders are expected to reach up to €250m each by 2030 for this partnership.
The European Partnership for Innovation in Photovoltaics will see up to €240m each from both the commission and private stakeholders from 2025 to 2030.
These three new partnerships are set to enhance the existing suite of 12 co-programmed partnerships launched under Horizon Europe Strategic Plan 2021-2024.
Following the signing of Memoranda of Understanding, the new co-programmed partnerships will commence through dedicated Horizon Europe Work Programme calls, supplemented by additional investments and activities from partners.
The inaugural funding opportunities under these new partnerships will be integrated into the Horizon Europe Work Programme 2025.
A fourth co-programmed partnership focused on Virtual Worlds is slated for launch later this year. European Commission tech sovereignty, security and democracy executive vice-president Henna Virkkunen said: “Europe’s future depends on its ability to innovate and scale up. By fostering public-private collaboration in emerging and transformative sectors through these new partnerships, we are driving progress in key areas such as advanced materials, solar energy, and textiles. Our pathway to tech sovereignty is clear: we need to transform Europe into a global digital and innovation powerhouse while reducing our reliance on imported technologies.”
Source: Just Style
