Synopsis India and the UK have finalized a free trade agreement. It aims to double commerce by 2030. The deal lowers tariffs on Indian exports. British firms will find it easier to export to India. Duty reductions on cars will occur over 10-15 years. Quotas will limit petrol, diesel, and electric vehicle imports. The FTA offers opportunities for India's services sector. India has included adequate safeguards in the free trade agreement with the UK to protect its sensitive sectors and in the automobile segment, the import duty will be reduced over 10-15 years, a government official said on Thursday. The official also said that the duty concession on imports of petrol and diesel engine vehicles from the UK is limited to a pre-defined quota. Similarly, the quota for imports of British electric vehicles (EVs) at a concessional rate of customs duty is limited only to a "few" thousand. India and the UK on Tuesday sealed a landmark free trade agreement that will lower tariffs on 99 per cent of Indian exports and would make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket. The aim is to double the two-way commerce by 2030 from the present USD 60 billion Tariffs on automotive imports will be reduced from over 100 per cent to 10 per cent under quotas on both sides, benefiting companies such as Tata-JLR. "For cars, duty will be cut in a period of 10 to 15 years and the volume of imports will be very small...We have not allowed futuristic cars (EVs) or lowcost cars. So a lot of protection measures we have taken," the official said adding India's car industry is set to reach a record 50 lakh units and by the time duty will be reduced, it may reach one crore per year. As the fourth-largest automobile producer globally, India possesses the scale and strategic depth to emerge as a global leader in the automotive value chain. The access to the UK market for ICE (internal combustion engine) vehicles has the potential to boost the country's auto and auto components exports. "No out-of-quota duty reduction for EVs. The sensitivity related to EVs has been taken care of. The out-of-quota duty on ICE vehicles will be reduced gradually over a longer period of time, thereby helping our industries absorb the incremental increase of imports from the UK," the official added. The total electric passenger vehicle retail sales in India grew by 56.87 per cent in April this year to 12,233 units compared to 7,798 units in the same month last year, according to the latest data released by the Federation of Automotive Dealers Associations (FADA). Tata Motors continued to lead the market with 4,436 units of electric PVs sold last month, although JSW MG Motor India and Mahindra & Mahindra (M&M) are catching up with 3,462 units and 2,979 units respectively, as per FADA data collated as on May 2 this year. Further, the official said that the text of the FTA will take some more time to be ready for signing. Three months would be required for legal scrubbing (vetting by lawyers) of the text which will be done jointly. After signing, the ratification process of the FTA would take another year in the UK's parliament and only after that the pact would be ready for implementation. The double contribution convention agreement (or social security pact) will also come into effect from that day. Apart from the phased reduction in duties to 10 per cent from 100 per cent and a quota on the number of vehicles that can be imported at concessional duty, there will be further differentiation in tariffs based on the price and engine capacity, the official added. The official also said that the India-UK FTA would provide huge opportunities for the domestic services sector. Of the total trade of USD 56.76 billion between the two countries in 2024, around 58 per cent is in services. India's goods exports to the UK in 2024 were USD 14.38 billion while services exports were USD 19.57 billion. The goods imports from Britain were worth USD 9.32 billion dollars, while services imports were USD 13.45 billion. The official said that India is looking to increase exports to USD 60 billion to the UK in the next five years and "it may touch USD 80-90 billion in 10 years". In the FTA the UK has offered broad commitment across 137 sub-sectors which includes areas like IT and IT enabled Services, financial services, professional services, other business services and education services. It has also offered an assured regime for temporary entry and stay requirements for business visitors, intra-corporate transfers, contractual service providers and independent professionals. There is no quota on visas in services, the official said. Due to the Double Contribution Convention pact, the Indian service providers will save Rs 4,000 crore annually. The convention exempts temporary Indian workers in the UK from social contribution for three years. "This will decrease the cost of doing business in services and increase the competitiveness of Indian services suppliers," the official added. At present, Indian workers and companies in the UK together contribute 20 per cent of workers' annual salary for which they are not eligible for any benefit. The benefit or pension is admissible only after making contribution for at least 10 years. As the temporary period of stay typically does not exceed 3-4 years, it effectively leads to forfeiture of all social security contributions made (Rs 4,000 crore annually). While India has opened up government procurement for the UK under the FTA, the UK has also agreed to take a binding commitment to provide nondiscriminatory treatment to Indian suppliers under the UK Social Value regime. Further in the agri sector, Indian products such as fresh grapes processed food, preserved vegetables and fruits, and chilled vegetables and fruits will become more competitive in the UK market than products from other countries like Brazil, Thailand, the US, and China.
Source: The Economic Times
India and the UK have finalised their FTA after long negotiations. The agreement reflects political compromise, with India dropping some demands regarding labour migration. The deal aims to boost UK GDP and lower prices for consumers. Canada is pursuing trade partnerships with Indonesia and Asean. A trade agreement between India and the EU is expected soon. President Donald Trump may say “tariffs” are his favourite word, but the rest of the world doesn’t have to agree. With or without America, trade deals continue to be signed: On Tuesday, India finalized a pact with the UK after three years of negotiations. This agreement clearly reflects the importance of political momentum and compromise. Indian Prime Minister Narendra Modi and his UK counterpart, Keir Starmer, probably had to push their officials over the finish line themselves. As recently as a few days ago, stories about how many issues remained to be resolved filled the papers. It is still possible, even in an uncertain world, for countries to take a punt on economic integration. But it can only happen if politicians are willing to surrender some control. India’s famously tetchy negotiators had to give up on several long-standing demands. Previous attempts at trade agreements with Britain had foundered over labour migration: New Delhi wanted more visas for Indian workers and students. But the political climate in the UK no longer allows that — the antimigrant Reform Party made stunning gains in local elections last week — and such provisions have been drastically watered down in the final deal. Perhaps India found it easier to drop tariffs with the UK because neither is good at making things anymore. Manufacturing is not globally competitive in either India or Britain. Both have world-beating services sectors, though. It will be interesting to see if the fine print exposes powerful interest groups like New Delhi’s law firms to competition. Officials in Whitehall are proud of themselves, claiming that it will increase UK GDP by £4.8 billion ($6.4 billion), and real wages by 0.2%. Their press release also promised Britons will gain access to cheaper shrimp That’s no small thing. The agricultural sector has been a third rail in such negotiations for so long that it’s a shock to hear of a pact that centers trade in food. More than that, it is refreshing in today’s climate to hear people in power talk up the benefits that consumers gain from trade. And they will definitely do well out of this deal. Scotch whisky and Jaguars will get cheaper in India, and we will consume more of both (hopefully not at the same time). Meanwhile, Indians in Britain will wish this means they can finally buy proper mangoes in their local supermarket, instead of shamefacedly ordering smuggled cartons from bootleggers in Slough. India and the UK aren’t alone in trying to give consumers a better deal in recent years. Canada, which has so much to lose from an autarkic America, is implementing a new economic partnership with Indonesia. It is also chasing one with the entire Asean bloc, and trade representatives have “agreed to work towards concluding negotiations” for a free-trade agreement this year. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is considering adding new partners, including Indonesia and some Central American nations. Trade ministers from Japan, China and South Korea pledged in March to deepen trilateral cooperation and keep the exchange of goods going. The biggest single prize is a trade agreement between India and the European Union. This has been in the works for decades, but politicians have promised it will be concluded by the end of the year. Hopefully, the Modi that pushed the UK deal through will be willing to make the deeper compromises needed for a far more consequential pact with Europe. And then, of course, there are the 70-plus trade deals that the Trump administration will supposedly negotiate before its 90-day “pause” on tariffs runs out. Modi’s trade ministry deserves credit for getting a deal with the UK done when most observers thought they would be completely absorbed in working out what Washington wants. Treasury Secretary Scott Bessent has promised that India would be “one of the first” agreements that the US would sign. If so, perhaps New Delhi’s concessions to Britain are a glimpse of what it will offer Trump. And perhaps the need to hand such concessions to the US made it easier to give them to Britain. It would be ironic if tariff-loving Trump turns out to be the person who pushes India, Asia and the rest of the world to overcome their hesitations about trade.
Source: The Economic Times
Synopsis India will gradually lower import duties on specific medical devices from the sixth year onward under its free trade agreement with the UK, prioritizing domestic manufacturing. This decision balances consumer needs with the 'Make in India' initiative. India will reduce import duties on medical devices covered in the production-linked incentive (PLI) scheme only from the sixth year onward, under its free trade agreement with the UK, a government official said on Thursday. The conclusion of negotiations for the agreement was announced by both sides on May 6. It is aimed at boosting bilateral trade in goods and services to USD 120 billion in the next five years from the present USD 60 billion.
"Aligning the consumer needs with the Make in India programme, only duty reduction from the sixth year (no elimination) offered on medical devices coming under the PLI," the official said. While the import duty on the sector is up to 7.5 per cent in India, it stands at 4.2 per cent in the UK.
Some industry experts have raised concerns that a reduction in the duty may lead to the dumping of these items from countries like China. To curb this, India should impose high value-addition norms for the sector to allow imports at concessional duty. As per estimates, India's medical devices imports from the UK rose by over 35 per cent to Rs 2,295 crore in 2023-24. The country's exports are around Rs 1,000 crore. The major devices traded between the two countries include disinfectants, spectacles, breathing appliances, hearing aids, orthopaedic appliances, radiography apparatus, and appliances used in medical, surgical, dental and veterinary sciences. The government has announced a PLI incentive scheme to promote domestic manufacturing of medical devices. 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 like linear accelerators, MRI machines, CT-Scans, Mammograms, C-Arms, Ultrasound machines, etc., which were previously imported into the country, has started. In the agreement, India will reduce tariffs on 90 per cent of UK imports, with 85 per cent of these tariff lines or product categories will become tariff-free within ten years. The official said the pact has also established mechanisms to address nontariff barriers (NTBs) to ensure smoother flow of goods and services and thereby, preventing unwarranted restrictions on Indian exports. To address NTBs, both sides will sign mutual recognition agreements (MRAs). The UK has agreed to the digital transmission of a certificate of origin. The legal scrubbing of the text is expected to take around three months, followed by about a year for approval by the UK Parliament. The deal will be implemented thereafter on a mutually agreed-upon date.
Source: The Economic Times
The United States’ economy contracted by 0.3 per cent in the first quarter of calendar year 2025 (Q1 CY25): the first time it happened so since early 2022. As US imports surged in Q1 CY25, India may have gained a bit.
Private consumption and investment expenditure grew in Q1 CY25, but huge spikes in imports of goods and services led to US gross domestic product (GDP) dipping. Imports increased at a seasonally adjusted annual rate of 41.3 per cent. Further, goods’ imports grew at a rate of roughly 51 per cent.
Source: Business Standard
India and the United Kingdom are poised to sign a bilateral trade deal within three months, with implementation expected to take over a year. The agreement includes separate import quotas for British combustion engine and electric vehicles, with phased tariff reductions. A bilateral trade deal between India and the United Kingdom could be signed after three months and will take over a year to implement, an Indian government official said on Thursday.
New Delhi and London concluded talks for a free trade deal on Tuesday, closing a long-coveted deal between the world's fifth and sixth largest economies. India - the world's third largest car market - has offered separate import quotas to Britain for combustion engine vehicles and electric cars, the official said, and tariff cuts on the vehicles will be offered in a phased manner.
The quotas have been offered based on engine capacity and car prices, while "cheaper" cars have been kept out of the deal, the official added without elaborating. They spoke on condition of anonymity as the details of the pact have not been made public.
The countries clinched the deal in the shadow of erratic tariffs imposed by U.S. President Trump, which have threatened to upend the stability of global trade. Trump has in the past, called New Delhi a "tariff abuser". Separately, India and Britain agreed that New Delhi reserves the right to retaliate, if London introduces the Carbon Border Adjustment Mechanism, the official said. India has sought exemption from Britain's CBAM, which aims to levy higher taxes on imports from countries with less strict climate policies. New Delhi has also not set a minimum import price for tariff cuts on spirits as part of the trade deal, the official said.
Source: The Economic Times
A team of officials from India will travel to Washington this month to continue discussions on the proposed bilateral trade agreement (BTA) between India and the United States (US). “A team of officials is again going this month for the talks,” a senior government official said. During the previous round of meetings held in Washington from 23–25 April, both sides discussed a pathway for “early mutual wins” or an early tranche of the proposed BTA. The meetings involved “fruitful discussions” on a wide range of issues, covering both tariff and non-tariff matters.
Source: Business Standard
MANCHESTER, UK — The 93rd Textile Institute World Conference (TIWC 2025) will take place at the Porto Palácio Hotel and Spa in Porto, Portugal, from October 7-10, 2025.
Fibre to Future – Transforming Fashion and Textiles through Sustainability, is the theme of this unmissable event which will explore how sustainability and digitalisation are reshaping the industry – from fibre production and manufacturing to consumer use and end-of-life solutions.
The fast-emerging new approaches to addressing sustainability challenges and the digital technologies that are now enhancing efficiency and transparency will be fully explored over the four-day programme, with insights from leading academics, industry experts and policymakers. Actionable strategies for reducing environmental impact, minimising waste, and embracing zero-carbon solutions in line with global sustainability goals will be highlighted.
“A key aim of the TWIC is to foster collaboration between industry and academia, creating a shared vision for a sustainable and digital future in textiles,” says Textile Institute CEO Stephanie Dick. “This year’s conference is hosted by AQUITEX, an established Portuguese specialist in the development of chemicals and auxiliaries for the textile industry – the first time a company has hosted the event. Join us in shaping the next chapter of the textile industry and be a part of the global conversation on sustainability and innovation.”
Source: Textile World
Germany’s real (price-adjusted) new manufacturing orders rose by 3.6 per cent in March 2025 compared to February, according to provisional data from the Federal Statistical Office (Destatis). Excluding large-scale orders, the increase stood at 3.2 per cent. However, the broader three-month comparison revealed a 2.3 per cent decline in new orders in the first quarter (Q1) of 2025 compared to Q4 2024, though excluding large orders, a 0.5 per cent rise was recorded. February 2025 data was unchanged from January, confirming the provisional figure of 0 per cent month-over-month (MoM) growth, said in a press release.
In March 2025, several key economic sectors contributed to the rise in Germany’s manufacturing of new orders. Notable MoM increases (seasonally and calendar adjusted) were recorded in the manufacture of electrical equipment (+14.5 per cent), machinery and equipment (+5.3 per cent), and other transport equipment including aircraft, ships, and military vehicles (+13.0 per cent).
Intermediate goods and consumer goods saw increases of 2.5 per cent and 8.7 per cent, respectively. Foreign demand strengthened overall, with international orders rising 4.7 per cent—driven by an 8.0 per cent increase from the euro area and 2.8 per cent from non-euro area countries. Domestic orders also grew, up by 2.0 per cent compared to the previous month.
Real turnover in manufacturing sector, adjusted for seasonal and calendar effects, rose by 2.2 per cent in March 2025 compared to the previous month. However, calendar-adjusted turnover was 0.4 per cent lower than in March 2024. Revised figures for February 2025 indicated a 0.3 per cent increase over January 2025, slightly above the previously reported 0.2 per cent, added the release.
Source: Fibre2fashion
The S&P Global ASEAN Manufacturing Purchasing Managers’ Index (PMI) declined for the second consecutive month in April, slipping below the 50.0 threshold for the first time since December 2023. Falling to 48.7 from 50.8 in March, it marked the sharpest deterioration in operating conditions since August 2021.
The beginning of the second quarter reflected a renewed weakening in the region’s manufacturing health, with notable declines in both output and new orders. In response to reduced production needs, companies scaled back purchasing activity and trimmed workforce numbers. Business sentiment also took a hit, with confidence in future output reaching its lowest level since July 2020.
In April, the two key components of the PMI—new orders and output—saw renewed and marked declines, ending 13- and six-month growth streaks, respectively. Both experienced their steepest downturns in 44 months. Reflecting reduced production needs, firms cut back on purchasing activity for the first time in six months. Although modest, the decline was the sharpest since August 2021. Employment also fell for the second month running, with April’s job shedding slightly outpacing that of March, S&P Global said in a press release.
Staffing levels declined only slightly, yet the rate of reduction was the sharpest recorded since April 2024. S&P Global ASEAN Manufacturing PMI (seasonally adjusted), where a reading above 50 indicates an improvement from the previous month.
Reduced purchasing activity led to a decline in input inventories for the first time in three months. This drop in demand also eased pressure on supply chains, resulting in a marginal improvement in supplier performance—the first in a year. Cost pressures softened in April, with input costs rising only modestly and at the slowest pace in four-and-a-half years. Selling price inflation held steady and remained subdued overall, added the release.
Although firms retained a broadly positive outlook for the year ahead, overall sentiment declined significantly, with confidence dropping below the historical average to its lowest level since July 2020.
“April PMI data revealed a concerning picture for ASEAN goods producers, as the sector fell back into contraction for the first time in 16 months. Both output and new orders recorded renewed contractions, accompanied by reduced purchasing activity and a deepening downturn in job shedding,” said Maryam Baluch, economist at S&P Global Market Intelligence. “Even more troubling was the slump in confidence observed in April, which reached a 57-month low, signalling a significant loss in sentiment among manufacturers. This decline in confidence raises concerns about the sector's ability to recover in the near term and suggests that firms may be bracing for further challenges ahead.”
Source: Fibre2fashion
The 93rd Textile Institute World Conference (TIWC 2025) will take place from 7–10 October 2025 at the Porto Palácio Hotel and Spa, bringing together global experts for a four-day event focused on sustainability and innovation in the textile and fashion industries. Under the theme Fibre to Future – Transforming Fashion and Textiles through Sustainability, the conference will explore how the industry is evolving through sustainable practices and digital transformation. Key sessions will highlight cutting-edge approaches to reducing environmental impact, implementing circular strategies, and integrating zero-carbon solutions from fibre production through to consumer usage and end-of-life processes. Organised by The Textile Institute and hosted for the first time by Aquitex – a leading Portuguese company specialising in textile chemicals and auxiliaries – TIWC 2025 will offer a unique platform for academics, policymakers and industry professionals to engage in knowledge-sharing and forward-thinking collaboration. “This year’s event aims to strengthen ties between research and industry,” said Stephanie Dick, CEO of The Textile Institute. “We invite all stakeholders to take part in this important dialogue to help shape a sustainable and digital future for textiles.” The full conference agenda will be released soon, and the organisers will provide invitation letters for visa applications upon request.
Source: Knitting Industry
Surrounded by samples of silk and glittering tweed in one of China's largest fabric markets, textiles exporter Cherry said she was anxiously awaiting the result of trade talks with the United States this weekend. Her company, which relies on US customers for around half its client base, is one of many caught in the crosshairs as the standoff between Washington and Beijing has escalated this year. Cherry has already had US orders cancelled and is desperately hoping the negotiations starting Saturday in Geneva will result in the rolling back of the reciprocal tariffs that make doing business almost impossible. "The situation will be very bad if this continues," she said, sceptical of claims her industry would be able to weather prolonged levies. "A few months ago I heard people say they'd had many containers (of goods) being cancelled. Some factories have already had to stop production." Sales to the United States made up 18 percent of China's total textiles and apparel exports in 2024, according to Moody's Ratings. A significant proportion of that comes from the eastern manufacturing powerhouse province of Zhejiang, where the labyrinth-like Keqiao China Textile City is based in the city of Shaoxing. With a listed 26,000 shops selling everything from velvet to rayon to fake fur, it is touted as one of the world's busiest fabric hubs. But customers were few and far between when AFP visited on a day of torrential rain this week, with vendors' spirits largely dampened too. "Of course I am afraid," said one woman surnamed Li, who added that business was already affected by the global turmoil. "This is my job -- I rely on it to support my family... I hope for a good outcome (for the talks)."
'Lose-lose scenario' -
The Geneva talks are the first official public engagement between the two sides aimed at resolving the stand-off triggered by US President Donald Trump's wide-ranging tariffs.
The subsequent tit-for-tat means many Chinese goods entering the United States now face duties of 145 percent -- with some specific sectors even higher -- while Beijing has hit back with 125 percent levies on most US goods. One seller in Keqiao market described the situation as a "lose-lose scenario".
Some of her colleagues' US customers have agreed to pay a 30 percent non-refundable deposit to initiate production, on the understanding that the whole order can be cancelled if the final tariff level after negotiations is still too high. If that happens, everyone will lose money. "We basically don't dare to take US orders anymore," said 66-year-old Zhou, standing in front of swaths of khaki in various hues. "The cost price can't even be covered, especially with such high tariffs added on."
For companies like his daughter's, which dealt mainly with US clients, "the impact is huge", he said. "The best outcome would be for everyone to sit down and talk things through -- it would be good for everyone, right?" Even the hint of de-escalation has brought some back to the table, with one exporter telling AFP a client who had suspended orders had recently given the go-ahead for production to begin. But at a ski suit workshop in a cross-border e-commerce centre a few kilometres away, 31-year-old Xiao Huilan said a lot of local companies had lost out completing production for orders that had subsequently been reduced or held off. "In the short term, we can manage, but in the long run, businesses can't sustain it," she said. "In a trade war, no one really wins. What we hope for is reconciliation, where everyone can coexist and prosper together."
Source: Djournal
The textile industry is navigating a constantly evolving business landscape, facing various challenges. However, this dynamic environment also presents significant opportunities, fuelled by rising demand from emerging markets, advancements in technology, and shifts in consumer preferences. To help the industry adapt swiftly and identify pathways for growth, Intertextile Shanghai Apparel Fabrics – Autumn Edition will open its doors from 2 – 4 September 2025 at the National Exhibition and Convention Center (Shanghai). After strong domestic and international visitor increases at recent editions, the fair is on track to cement its role as one of the industry’s leading hubs for textile trade and innovation exchange.
The 2024 Autumn Edition marked the show’s 30th anniversary by drawing nearly 4,000 exhibitors from 26 countries and regions, and welcoming over 100,000 visitors, with international visitors up 29%. This momentum carried into 2025’s Spring Edition, hosting nearly 95,000 visitors from 131 countries and regions, a 17% rise.
Source: Fibre2fashion
