Synopsis India has urged action against trade distortions from non-market economies and nontariff barriers, emphasizing the need for a robust WTO dispute settlement mechanism. Piyush Goyal stressed strengthening the consensus-based approach and special treatment for developing nations. Discussions also covered agriculture, overfishing, and concerns about incorporating joint statement initiatives into the multilateral framework.
Source: The Economic Times
In FY25, central ministries significantly surpassed their procurement targets from micro and small enterprises (MSEs), achieving ₹92,675 crore against a goal of ₹47,676.88 crore. The petroleum & natural gas, defence, and power ministries led in procurement value, while shipping ministry topped in percentage terms. However, finance, health & family welfare, and space departments fell short of their targets.
Source: The Economic Times
Piyush Goyal's Italy visit has yielded positive results. Italian firms are planning expansions in India. Carraro Group will invest Euro 350 million. UFI Filters will double its investment. Toschi Vignola will increase its Indian operations. These moves will boost 'Make in India'. India has received significant support from global companies and investors during Commerce and Industry Minister Piyush Goyal's visit to Italy, as several leading Italian companies announced plans to expand their presence and double down on investments in the country. During the meeting with Union Commerce Minister, Italian automotive components manufacturer Carraro Group announced ambitious expansion plans for India. The company will commit to investing Euro 350 million over the next five to seven years, nearly doubling its current investment base. "We have invested around 200 million euros in India and currently employ 1,600 people. We want to increase our investment to 350 million euros in the next 5-7 years," Carraro Group Chairman Enrico Carraro told reporters. Francesco Sequi, CEO of Carraro India, emphasised the significant growth potential in the Indian market. "Investing in India has seen large growth for our business. Our business in India has a big space to grow. The Indian government is very helpful," Sequi said. Meanwhile, UFI Filters, a key player in filtration and thermal management technologies, also announced its decision to double its investment in India to meet rising demand and support local manufacturing. Speaking to media representatives following a meeting with the Commerce and Industry Minister, Girondi expressed confidence in the company's Indian operations and outlined ambitious growth targets for the region. Adding to the momentum, CEO Stefano Toschi announced that Italian speciality food company Toschi Vignola will significantly increase its business operations in India, leveraging the country's growing economy and evolving food preferences. "India is our main focus for the future, based on the growth and population of the country," Toschi told ANI. "India has love for traditional food, but Indians are also looking for Western. The CEO emphasised that India's robust economic growth and the strong diplomatic relations between India and Italy create favourable conditions for business expansion. "India is a growing economy. The relationship between India and Italy is good for our business," he said. Toschi Vignola, with its flagship black cherry products, boasts more than 400 product references spanning fruit preserves, syrups, spirits, and coffee solutions. The company has established a strong presence in over 80 countries, serving bars, restaurants, ice cream shops, and pastry establishments worldwide. These developments, during the two-day visit to Italy, highlight the strengthening trade and investment ties between India and Italy, with Piyush Goyal's high-level engagements with top CEOs playing a catalytic role in attracting fresh investments. Piyush Goyal met the CEOs of several leading companies here. Apart from Giorgio Girondi, they included Stefano Toschi, CEO, Toschi Vignola; Marco Nocivelli, CEO, ERTA Refrigeration; Enrico Carraro, Chairman, Carraro Group; Daniele Forni, Managing Director, SOL Group; and Laura Tarquinio, Owner and CEO, iMoon lightning Srl. The announcements are seen as a significant push for the 'Make in India' and self-reliant manufacturing goals, while also boosting job creation and technology transfer.
Source: The Economic Times
The government has not made any amendments to the foreign direct investment (FDI) policy for countries sharing land border with India, sources said on Wednesday. In 2020, the government issued Press Note 3 under which investors from these land bordering countries have to mandatorily take prior approval of the government for making investments in any sector. The Press Note 3 is applicable to all the land bordering countries of India in an equal manner, the sources said. The countries are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
All FDI proposals from these nations undergo the similar process of scrutiny and examination as per standard operating procedure for the processing of investment proposals from these nations. "After issuance of this press note, no amendment has been undertaken in the FDI policy relating to investments from countries sharing land border with India," a source said. These remarks are important as certain reports have stated that the approval process for FDI applications from China has been streamlined. At present, there is an inter-ministerial committee headed by the Home Secretary to consider applications under Press Note 3. The bulk of FDI coming into India falls under the automatic approval route.
Source: The Economic Times
Piyush Goyal is visiting Italy to boost economic ties. India and Italy will explore collaboration in areas like the India-Middle East-Europe Economic Corridor. They will also focus on Industry 4.0, agritech, and energy transition. Goyal will co-chair the India-Italy Joint Commission for Economic Cooperation with Antonio Tajani.
Source: The Economic Times
The recent move by India to restrict garment imports from Bangladesh via land routes may be short-term and may merely provide a temporary boost to India’s textile industry. The fact, however, remains that Bangladesh is facing a threefold challenge, and if India can use this as an opportunity and build upon it suitably, the textile industry in the country could experience long-term growth.
Bangladesh’s post-Hasina political situation has opened a window for Indian textile exports. The spectre of reciprocal tariffs initiated by US President Donald Trump is looming over Bangladesh’s economy. These tariffs are in abeyance until July. The US market accounts for around 14 per cent of Bangladesh’s exports. It may be noted that Bangladesh’s exports have seen a steady increase, with a compound annual growth rate of 6.5 per cent — from USD 42 billion in 2020 to USD 57.5 billion in 2024. This is largely attributed to its textile industry. In fact, the share of textiles in Bangladesh’s exports has increased from 76 per cent in 2004 to 88 per cent in 2024, as it continued to excel in cut-and-sew models. However, the major concern for Bangladesh — beyond its political situation and the US tariff risk — is the impending case wherein it may lose the zero-duty preferential trade benefits granted to Least Developed Countries (LDCs) like itself from 2026, when it is expected to graduate from LDC status. Bangladesh has benefited significantly under this mechanism, having expanded its market to developed countries like the 27-nation EU and the US. Market-wise distribution of textiles and garments exports in 2024 shows that India holds only a slight edge in the US, with exports at USD 8.1 billion compared to Bangladesh’s USD 7.6 billion. However, with respect to the EU and the UK, Bangladesh is far ahead of India. Bangladesh’s exports to these two key markets stood at USD 28.3 billion and USD 4 billion respectively, as compared to India’s exports of USD 5.6 billion and USD 1.7 billion. In Australia too, Bangladesh’s exports are double that of India, at around USD 1 billion.
It, therefore, becomes important for India to negotiate well in the FTAs, especially with the EU, which could enhance India’s competitiveness in the global apparel market. At the same time, non-tariff barriers (NTBs) in the EU for Indian textiles should also be a significant part of these discussions. According to the recently concluded India-UK FTA, garments exported from India will be tariff-free — previously they were subject to 8 to 12 per cent import duties in the UK. If a similar FTA is signed with the EU nations, Indian garment exports could increase many times over.
Secondly, beyond FTA negotiations, the most important aspect is creating mass production capabilities in Indian textiles, akin to its competitors. Bangladesh’s comparative advantage lies in its ability to provide manpower at lower cost. While India can continue to manage its workforce costs, the government must constructively plan to enable large-scale textile production to compete with Bangladesh. The PM MITRA Parks (Pradhan Mantri Mega Integrated Textile Region and Apparel) should help develop large-scale, modern industrial infrastructure that supports an ecosystem attractive to investors.
Thirdly, India needs new textile machinery, including those that incorporate advanced technologies. Textile mills are often reluctant to upgrade to modern machinery due to high initial costs, resulting in inefficiencies and reduced productivity. The government may consider incentivising companies through a scheme that facilitates the replacement of machinery that is at least 15–20 years old. This would also boost production through automation.
Finally, product diversification in the textile industry is crucial. While India continues to produce readymade garments, it could also explore higher-value products by focusing on man-made fibres, which account for a larger share of global textile consumption than natural fibres. Embracing innovations such as 3D printing would also offer flexibility in yarn processing and textile design, as well as support digital printing.The EU is becoming increasingly strict about environmental regulations. In this scenario, a focus on sustainable products — such as biodegradable textiles and eco-friendly dyes — is essential for the Indian textile and garment sector. The government should support the adoption of such technologies under the Amended Technology Upgradation Fund Scheme (ATUFS).
A comprehensive FTA with the UK, EU, and the US can propel the textile industry onto a new trajectory, fostering an ecosystem of mass production and sustainable infrastructure aligned with global demand. If the right efforts are made, India could reap significant dividends.
Source: Indian Express
The Ministry of Textiles has released a draft vision document titled Roadmap 2047 outlining its long-term goals for creating a sustainable, circular, and resource-efficient textile industry in India. The draft highlights the Ministry’s commitment to transforming the sector in line with global sustainability standards and the country's development goals. Key focus areas of the roadmap include building awareness throughout the textile value chain—reaching from large industrial players and MSMEs to consumers and students. The plan emphasises the need for capacity building, increased investment in research and development, innovation, and sharing of industry knowledge. Another major pillar of the strategy is aligning Indian textile policies with evolving global expectations. This includes a strong push towards environmental, social, and governance (ESG) compliance, promoting green finance, and encouraging responsible production and consumption. The draft aims to equip India’s textile ecosystem to adapt to the demands of the global market while ensuring resource efficiency and environmental sustainability. With this, the Ministry seeks to position India as a global leader in sustainable textiles by 2047, the centenary year of India’s independence. Stakeholder consultations and feedback will be sought before finalizing the roadmap, which is expected to serve as a strategic guide for the sector’s transformation over the next two decades.
Source: Business Standard
KARACHI: Pakistan is facing the flight of capital, with local industrialists shifting their factories to investor-friendly Middle Eastern countries like the United Arab Emirates due to the lack of favorable industrialization policies at home, Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), said on Tuesday. APTMA represents more than 200 textile millers, which employ the country’s largest industrial workforce of more than 40 million people and account for half of the nation’s total exports. Its top official made the remark during an interview with Arab News just a week ahead of the country’s federal budget that is scheduled to be announced on June 10. “Pakistani investors are now the second or third largest investors in places like Dubai,” he said during the conversation. “Yes, there has been a flight of capital,” he continued, adding “had there been curbs and checks and balances on the flight of capital and favorable industrialization policies, the capital would have remained within Pakistan, and it would have gone into agriculture and industry.” Pakistan’s government is trying to turn around the country’s debt-ridden economy by curtailing imports and increasing exports with the help of the International Monetary Fund’s (IMF) loan program. The government has emphasized its commitment to creating a more business-friendly environment in recent years, identifying textiles as a central driver in achieving a $60 billion export target by 2029 under its newly unveiled five-year economic framework. Overall, the country’s exports rose six percent to $27 billion this year through April, but its textile exports declined more than 13 percent between FY22 and FY24 after hitting a record $19.3 billion in FY22.
Arshad maintained this was mainly due to the Export Facilitation Scheme (EFS) introduced last year that did not work well for the sector. Originally envisaged to streamline and incentivize exports by allowing exporters duty- and tax-free access to inputs used in the production of export goods, the scheme benefited importers over local input producers by putting yarn and all varieties of fabric on the EFS. By removing the sales tax exemption from domestically produced inputs like cottonseed and yarn while keeping imported equivalents tax-free, the scheme made local sourcing less competitive for Pakistani manufacturers. “We fully expect that the government would be considerate and they would honor our request, our demand to remove yarn and fabric of all sorts from the EFS scheme and to create a level playing field,” the APTMA chief said. Separately, at a news conference, he said that while hundreds of local industries had already closed, others were running at partial capacity. “More than 120 spinning mills and over 800 ginning factories stand closed at the moment,” he said.
Source: Arab News
The Pangasinan State University in the Philippines and the Department of Science and Technology-Philippine Textile Research Institute (DOST-PTRI) have launched the Bamboo Textile Fibre Innovation Hub (BTFIH) in Pangasinan. The hub will foster local innovation, promote circular economy principles and strengthen the bamboo textile value chain in the region, an official release from the university said. “Through the programme, they are provided with textile fibres that are locally developed and produced, truly Filipino, truly natural and truly renewable. This unique and strategic product positioning can generate higher value as the fibre is converted to fabric and into apparel, among other products,” DOST secretary Renato Solidum Jr said. The hub is the second hub in the region and can produce 40 kg of raw bamboo textile fibre. It will also conduct research on bamboo textile fibre.
Source: Fibre2fashion
