Textile industry owners who want government support to set up mini textile parks or upgrade their spinning machines should contact the office of the joint textile commissioner in Tiruppur, according to a press release. The government has amended the mini textile park scheme to extend subsidy for development of infrastructure facilities, industry buildings, and industry service-related buildings. A mini textile park should be spread on minimum two acres and have three industrial units to be eligible for 50% of the project cost of ₹2.5 crore subsidy. The government has amended the mini textile park scheme to extend subsidy for development of infrastructure facilities, industry buildings, and industry service related buildings. A mini textile park should be spread on minimum two acres and have three industrial units to be eligible for 50% of the project cost of ₹2.5 crore subsidy. Currently, 19 parks are under development in seven districts, the release added. Under the spinning mills modernisation scheme, the government gives interest subsidy for five years to replace spinning machinery that are more than five years old. This is available for ring spinning, open end spinning and air jet spinning mills that have ordered for the new machinery after December 9, 2024.
Source: The Hindu
Synopsis India and the US will address trade issues, including increased US tariffs on steel and aluminium. Both nations aim for a bilateral trade agreement, targeting $500 billion in trade by 2030. US officials will visit India for trade discussions. An interim deal is expected by June. India and Oman are also progressing on a free trade agreement.
Source: The Economic Times
Synopsis Donald Trump's proposed 50% tariff on steel and aluminium imports threatens India's engineering goods' shipments, potentially impacting USD 5 billion worth of exports. The existing 25% tariff has already intensified global competition. EEPC India urges a waiver like the UK's, fearing complications in ongoing Bilateral Trade Agreement negotiations. US President Donald Trump's proposed 50 per cent tariff on steel and aluminium imports could severely impact India's engineering goods' shipments, an engineering exports promotion body has said. These metals and their derivatives constitute nearly a quarter of the country's total engineering shipments to the US, the Engineering Export Promotion Council of India said. Currently, India exports around USD 5 billion worth of steel, aluminium and related products to the US annually.
The existing 25 per cent tariff on steel imports, imposed by the US on March 18, 2025, has already created a tough market for Indian exporters, it said. While India's direct steel exports to the US remain limited, the tariffs have intensified global competition and disrupted trade flows. "If the US implements the 50 per cent tariff on steel, aluminium and their derivatives, exports of these critical items will become more expensive, likely leading to a decline in shipments," Chairman of EEPC India, Pankaj Chadha, said. He pointed out that the UK recently secured an exemption from the 25 per cent steel and aluminium tariffs through a trade deal with the US and suggested that India should seek a similar waiver during the ongoing Bilateral Trade Agreement (BTA) negotiations. "This may not be the right time for such unilateral tariffs, especially when BTA talks are underway. It could complicate negotiations. The proposed hike could jeopardise engineering exports worth around USD 5 billion," Chadha said.
Source: The Economic Times
Synopsis India anticipates significant economic growth. The nation's economy is projected to reach nearly USD 30 trillion by 2047. India's young population provides an advantage. Sustainable urbanisation is a key focus. The country needs to develop 500 new cities. There are plans to increase the number of airports to 400. Indian airlines are encouraged to compete globally. India's economy, which is currently USD 4 trillion in size, is expected to be close to USD 30 trillion by 2047 and the country also has the advantage of younger demographics, G20 Sherpa Amitabh Kant said on Monday. He was speaking at a session on the sidelines of the International Air Transport Association (IATA) in the national capital. "The demographics are very young. The Western part of the world is ageing and Japan has already aged, even China is ageing. India is just 28 and even when we become 100, the average age will be 35 years. It is a country of baby boomers," Kant said. The country's economy will be close to USD 30 trillion in 2047. The country is a USD 4 trillion economy and just became the fourth largest economy in the world, he added.
While emphasising about sustainable urbanisation, Kant said the country will see around 5 million people getting into the process of urbanisation and there will be a need to create 500 new cities in India. "You need to create two new Americas in the next five decades. You need to create a Chicago every five years in India. That is the challenge for India," he said. Kant also said that India's ambition is to create 400 airports. There are more than 150 operational airports in the country. "You need great airports, great airlines, you need them to do long haul... IndiGo and Air India with their wide body aircraft should go out and compete with Emirates, Qatar Airways... We believe in competing in the marketplace," he noted.
Synopsis US Commerce Secretary Howard Lutnick expressed optimism about an impending trade agreement between the United States and India, aiming to avert potential tariffs threatened by President Trump. Lutnick highlighted concerns regarding India's tariff practices and its military procurement from Russia but noted that the Indian government is actively addressing these issues, fostering hope for a mutually beneficial trade partnership. Secretary of Commerce Howard Lutnick has said one should expect a trade deal between India and the US in the "not-too-distant future" as the two countries have found a place that works for them. “So the idea is when they put the right person and India put the right person on the other side of the table, and we've managed, I think, to be in a very, very good place," Lutnick said in his keynote address at the eighth edition of the US-India Strategic Partnership Forum (USISPF) Leadership Summit here Monday. "And you should expect a deal between the United States and India in the nottoo-distant future because I think we found a place that really works for both countries,” “I would say very optimistic,” Lutnick said about the trade deal between India and the US. Noting the high tariffs that India has, Lutnick said that President Donald Trump is willing to call that out straight away.
Source: The Economic Times
The government has significantly streamlined procedures for clearing FDI applications of neighbouring countries including China, with quicker decisions, and regular interministerial committee meetings to ensure approvals are processed within the set timelines, an official said. The number of pending foreign directinvestment (FDI)proposals from countries sharing land border with India under the provisions of Press Note 3 is less. Under Press Note 3 of 2020, the government has made its prior approval mandatory for foreign investments from countries that share land border with India. These countries are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. As per that decision, FDI proposals from these countries need government approval for investments in India in any sector. "The government has streamlined a lot the procedures for clearance of applications coming under Press Note 3 of 2020. The time taken to decide on these applications has also come down significantly. Meetings of the interministerial committee are happening regularly to ensure that within the laid down timelines, these applicants are decided upon," the official told PTI.
Review of these meetings happens regularly at the cabinet secretary level also, the official, who did not wish to be named, said. At present, there is an inter-ministerial committee headed by the Home Secretary to consider applications under that press note. Industry experts have urged the government to ease Press Note 3 rules, as foreign firms with even tiny Chinese shareholding still need approval under this route. The Economic Survey 2024-25 had made a strong case for seeking foreign direct investments (FDI) from Beijing to boost local manufacturing and tap the export market. As the US and Europe are shifting their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export.
Source: The Economic Times
The ‘China-Bangladesh Conference on Investment & Trade’ concluded yesterday with a renewed focus on strengthening economic ties, particularly within the rapidly expanding textile and apparel sector. Jointly organized by the governments of Bangladesh and China, the event underscored Bangladesh’s strategic geographic location and skilled workforce as key attractions for Chinese investors. This year also marks the 50th anniversary of the enduring friendship between the two nations.
A central highlight of the summit was the technical session on ‘Textile and Apparel,’ held at the Multipurpose Room in Biniyog Bhaban, Agargaon. Experts discussed topics such as innovation, sustainability, and global market trends, reaffirming Bangladesh’s position as an ideal investment destination. Speakers praised the country’s liberal investment policies and robust growth across various sectors. Notably, China emerged as one of the top sources of Foreign Direct Investment (FDI) in Bangladesh in 2024.
A notable announcement was made by a leading Chinese textile firm, revealing plans to invest US $ 100 million in Bangladesh’s spinning industry. This move signals growing confidence among Chinese businesses in Bangladesh’s market potential and aligns with the nation’s goals to collaborate with China, a global manufacturing giant.
Discussions also highlighted the complementary strengths of both countries. While China excels in high-end textile manufacturing, Bangladesh leads the world in textile and apparel exports. The recent upgrades in Bangladesh’s textile infrastructure and its position as the 5th largest yarn importer globally were emphasized as significant opportunities for collaboration. The summit also acknowledged the impact of US trade restrictions on global supply chains, stressing the importance of balanced trade relationships.
According to the Bangladesh Investment Development Authority (BIDA), Chinese investors have shown strong interest in key sectors such as textiles, renewable energy, electronics, and agribusiness. The conference was held in Dhaka and jointly organized by BIDA and the Bangladesh Economic Zones Authority (BEZA). Chinese Commerce Minister Wang Wentao, who is currently visiting Bangladesh, reiterated China’s commitment to supporting Bangladesh’s export capacity and promoting integrated development of trade and investment. He emphasized the importance of maintaining multilateral trading systems and injecting stability into the global economy.
Minister Wang also highlighted the ongoing development of the China-Bangladesh comprehensive strategic partnership, pledging continued cooperation in trade, e-commerce, production, supply chains, and investment. Reflecting on the 50 years since diplomatic relations were established, he praised the mutual support, equality, and cooperation that have characterized the relationship between the two nations.
The summit underscores a shared vision to deepen economic cooperation and unlock new opportunities, particularly in the textile and apparel sectors, which are poised to be game changers for Bangladesh’s economic growth.
Source: Apparel Resource
Nigerian manufacturers in the textile sector are worried that Benin Republic has emerged as the textile hub in West Africa. The Republic of Benin has quietly emerged as a hub for sourcing textiles for international and regional markets in West Africa. The Glo Djibe Industrial Zone (GDIZ), situated 45km from Cotonou, has aided Benin Republic’s emergence as the focal point for ultra-modern textile facilities where a 1640-industrial cluster has been set up by the UAE-based Arise IIP in a joint venture with the Republic of Benin. The vertically integrated textile and garment factories in the zone produce ready-made garments and home textiles for the European and American markets, taking advantage of the geographical proximity and preferential market access. The Guardian gathered that the GDIZ is expected to attract an investment of $1.4 billion and generate employment of300,000 jobs by 2030. Benin Republic is the largest cotton producer in Africa and part of the ‘C4+’ cohort recognized by international development agencies such as the WTO, UNIDO and ITC.The ‘C4+’countries – Benin, Burkina Faso, Chad, Mali and Ivory Coast – account for 60 per cent of Africa’s cotton production of about two million tons, according to the International Cotton Advisory Committee (ICAC). ‘Partenariat pour le Coton’ (Partnership for Cotton) initiative launched at the 13th WTO Ministerial Conference in Abu Dhabi in January 2024, heralded the transformation of the cotton-textile sector in West Africa.
Speaking on the development, the Managing Partner, Gherzi Sub Sahara, Navdeep Sodhi told The Guardian that the ongoing Sino-American trade war and imposition of additional tariffs by the Trump administration has proved to be a boom for the textile industry in West Africa. He added that under the African Growth and Opportunity Act (AGOA), Sub-Saharan African countries avail duty-free access to the U.S. market adding that even with the imposition of the additional 10 per cent tariffs, Africa enjoys a big advantage over China and other Asian countries which were slapped with punitive tariffs, over and above the normal customs duty, ranging between 27 to 145 per cent. Sodhi noted that Benin catalysed the transformation of the textile industry in ECOWAS as Ghana and Togo have also attracted FDI large-scale apparel manufacturing for exports. Sodhi, who is also an international textile expert, insisted that West and Central Africa have the potential to become a thriving hub for the production of textiles and clothing for regional and international markets by forging value chain linkages spanning Cote d’Ivoire to Cameroon.
He added that with a population of nearly 500 million, the sub-region offers a ‘twin boon’ such as a large consumer base as well as the availability of abundant human resources needed in manufacturing.
Echoing the sentiment, Executive Secretary of the Organized Private Sector Exporters’ Association (OPEXA), Olatunji Olarewaju, submitted that Nigeria needed to take a cue from its ECOWAS peers by attracting investment in world-class industrial zones to boost non-oil exports of agro-allied products to the international as well as the continental market leveraging the AfCFTA.
He maintained that with the revival of the moribund textile industry in mind, the recent announcement of the establishment of the Textile Board by the Federal government sends the right signal to the stakeholders that ‘No power.
Source: The Gurdian
In a letter to Prime Minister Shehbaz Sharif, textile exporters have called on the federal government to reverse recent policy measures that they claim are disrupting the supply chains crucial to maintaining Pakistan’s $9 billion value-added textile export industry. The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) urged the government to take immediate action to address tariff-related barriers and restrictive policies that have, according to the associations, been hindering trade and supply operations. The letter outlines four main areas that require urgent attention in the upcoming fiscal year’s budget. The associations expressed concern that changes to the Export Facilitation Scheme (EFS) have had an adverse effect on small and medium-sized enterprises (SMEs), calling for the restoration of the original scheme to ensure international competitiveness and stability in the sector. They argued that the new scheme, in its current form, has been detrimental to SMEs, which play a key role in the value-added textile industry.
The exporters also emphasized the importance of reinstating the exporters’ final tax regime, which they say would reduce compliance costs, minimize administrative burdens, and help SMEs maintain financial stability in these challenging times. The associations urged Prime Minister Sharif to instruct the Federal Board of Revenue (FBR) to issue automated and expedited sales tax and customs rebates, along with reimbursements for the Drawback of Local Taxes and Levies (DLTL) and Duty Drawback of Taxes (DDT), in an effort to improve liquidity for exporters. Another key demand was the unconditional continuation of DLTL through a simple, paperless process, aimed at reducing the financial strain on exporters who have been facing severe liquidity issues. Exporters believe that continued access to DLTL would help ease cash flow concerns and allow businesses to remain competitive in international markets. Furthermore, the associations called for the government to engage in productive negotiations for a zero-for-zero apparel tariff agreement with the United States. The aim of such an agreement would be to lower Pakistan’s current apparel tariff of 29%, thereby boosting export competitiveness and providing the textile sector with the opportunity to expand in new international markets. The letter warned that failure to act quickly on these demands could lead to the widespread closure of export units, foreign exchange losses, and rising unemployment, which would have dire consequences for the country’s economy. The letter concluded by emphasising the critical importance of addressing these issues promptly to protect Pakistan’s largest employment-generating export sector and to support the government’s goal of reaching $100 billion in exports. The associations have urged the government to act swiftly to safeguard the industry and prevent further damage to the textile sector.
Source: Profit Pakistan today
Uzbekistan, The Chamber of Commerce and Industry of Uzbekistan held negotiations with the well-known Pakistani company Tabani Group and UCTC, the founder of the “Made in Uzbekistan” Trading House in Pakistan, which resulted in an agreement to establish a joint textile enterprise in Uzbekistan, Trend reports. The meeting followed the successful official visit of the Chamber's delegation to Pakistan, led by the Deputy Chairman, which took place from May 26 through 29. The discussions marked the transition of bilateral co-operation into a concrete and practical phase. The planned joint enterprise will focus on the production of high-quality garments using modern technologies, with the majority of output destined for export markets. The Chamber of Commerce and Industry of Uzbekistan considers this partnership a strategic step toward strengthening the country's textile industry, boosting exports, and generating new employment opportunities. Tabani Group is a leading textile manufacturer with a strong international reputation and a fully export-oriented business model. The company produces nearly 1 million shirts annually, with an annual turnover of approximately $10 million. Its products are exported to more than 10 countries, and the company employs over 1,500 workers. Tabani Group holds prestigious international quality certifications, including ISO, ICSE, and TOCC, solidifying its standing in global markets.
Source: Trend News
