The government is likely to next week roll out Online Dispute Resolution (ODR) for speedier resolution of delayed payment disputes for micro and small enterprises, officials said. Presently, the Samadhaan portal provides limited digital services to MSEs such as registration for dispute resolution. Under the proposed mechanism, parties can not only register their delayed payment cases but also submit documents on the portal as evidence to strengthen their case. "Right from the filing stage, sending notice, and hearing every bit will be digitised. Samadhaan portal will be subsumed under ODR. The scheme promotes document-only dispute resolution, as in commercial disputes, documents override verbal submission, " a government official told ET. MSEs will also be provided concessions in application, documentation and other processing fees. The ODR mechanism under the MSME Development Act seeks to strengthen institutional support by building human resource and technological capacity of the Micro and Small Enterprises Facilitation Council (MSEFC), set up under the MSMED Act, the official added. These MSEFCs will be financially assisted under the scheme to create legal capacity. The MSMED Act prescribes a 45-day window for buyers to pay their MSME suppliers, failing which they become liable to payment of interest. As part of the ODR, the government is also giving a push to AI, allowing parties to opt for an AI-facilitated dispute settlement process before approaching MSEFC.
Source: The Economic Times
India is in trade dialogues with countries with whom it doesn't compete but can complement the economies involved, Commerce and Industry Minister Piyush Goyal said here on Thursday. Addressing an India Global Forum (IGF) session on UK-India Science, Technology and Innovation Collaboration at the Science Museum, the minister elaborated on the opportunities that trade deals open up - bilaterally and to the wider global economy. "Our focus is on entering into robust trade agreements with the developed world," said Goyal, pointing to the UK-India FTA as well as deals concluded with Australia, the UAE and European Free Trade Association (EFTA). Goyal said that 15 years ago, before their party's government came into power, India was more focused on doing trade agreements with countries that "are our competitors". "It really is silly, because (that is) opening up my market to my competitors, many of whom have now become the B team of China. So effectively and indirectly, I have opened up my market for goods that find their way from China into India," he said. Referencing the ongoing trade negotiations with the US, New Zealand, the European Union (EU) and Gulf countries, the minister said: "We are in dialogue with countries with whom we don't compete, with whom we complement each other; where they have certain things to offer, which India would love to have, as with the UK agreement, and we have certain things on offer. We don't hurt their economies." "Therefore, these agreements will help us grow as an economy, help our innovation ecosystem get the right equipment, the right enabling environment. Our effort is to collaborate, co-create, co-operate and co-design. Let's work together as friends and allies of the democratic world," he added. During the wide-ranging discussion with Science Museum director and chief executive Sir Ian Blatchford, Goyal highlighted the big wins for the sector with the recently concluded FTA with the UK at a time when India is set to "massively invest" in the innovation ecosystem over the next 10-15 years. "I think a Free Trade Agreement also adds value to science and technology, and innovation. A trade agreement is not only about opening the doors wider for bilateral trade in goods or in services or even promoting investments. A Free Trade Agreement demonstrates to the world that the two countries are friends, are allies, plan to work together closely; they trust each other," he said. On Artificial Intelligence (AI), Goyal expressed optimism that it would open up many more avenues rather than an area of concern that could lead to job losses. "We are not only looking at it (AI) as a need to retrain our people, to re-skill our talent, but adopt it for regulation to provide for ethical use of AI and safeguard against misuse," he said. The session also marked the launch of a memorandum of understanding (MoU) between the Quantum Ecosystems and Technology Council of India (QETCI) and IGF for UK-India Quantum Value Chain Mapping. "This is a really rich relationship between our two countries, which is already thriving and which has great potential, well beyond free trade agreements," said Blatchford.
Source: The Economic Times
The industry official said that the meeting will be chaired by Commerce Secretary Sunil Barthwal. The commerce ministry on Friday will meet stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India’s overseas trade and address related issues, an official said. The industry official said that the meeting will be chaired by Commerce Secretary Sunil Barthwal. “The meeting is today. We will raise issues related to freight rates,” the official said. Barthwal has earlier stated that India is keeping a close watch on the situation.
Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India’s crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India’s fiscal management. Meanwhile, Israel’s June 14-15 strike on Houthi military leadership in Yemen has also heightened tensions in the Red Sea region, where Houthi forces have already attacked commercial shipping. For India, this poses another serious risk. Nearly 30 per cent of India’s west-bound exports to Europe, North Africa, and the US East Coast travel through the Bab el-Mandeb Strait, now vulnerable to further disruption, the GTRI has said. The present conflict that began with an attack on Israel on October 7, 2023, had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. After the US intervened with attacks on the rebels, the firing on commercial ships stopped. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India’s merchandise trade with Europe passes through the Red Sea, and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country’s total exports.The Red Sea Strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India’s exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24.
Source: Financial Express
Commerce minister Piyush Goyal calls India's FTA with ASEAN "silly," saying it became a backdoor for Chinese goods. He advocates shifting trade focus to developed nations for balanced, complementary agreements. ASEAN FTA review is ongoing, with rising trade deficits prompting policy rethink.
Commerce and industry minister Piyush Goyal on Thursday said that it was “silly” on India’s part to sign free trade agreements with Association of Southeast Nations (Asean) and other developing countries that are its direct competitors. Some of them over time become conduits of Chinese products, he remarked. “Many of whom (developing countries with which India entered into FTAs) have now become the B team of China. So effectively, I have opened up my markets for goods that find their way from China into India,” he said at the Future Frontiers Forum in London.
This is the most candid statement from a senior NDA government functionary, denouncing the FTA with Asean, although the widening of India’s trade deficit with the bloc after the pact has often been highlighted, including in academic circles. The Asean-India Trade in Goods Agreement (AITIGA) became operational in 2010, during the regime of UPA-II government. Since then, India’s trade deficit with Asean widened from $4.98 billion in 2010-11, the first full year of operation of AITIGA to $44.20 billion in 2024-25. India’s exports to the region fell 5.77% on-year in 2024-25 to $38.96 billion while imports grew 5.65% to $84.16 billion. Asean includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Within five years of the agreement on goods being activated, India had started asking for a review of the pact as its imports from Asean zoomed but it could not derive the expected benefits. India maintains that its exports to Asean have been impeded by non-reciprocity in FTA concessions, non-tariff barriers, import regulations and quotas. Another Indian demand is strict adherence to Rules of Origin provisions of the agreement by Asean. The review of the AITIGA is under progress and both sides have committed to complete the process by the end of this year. Along with the Asean FTA, the review of trade agreements with South Korea and Japan is also in the process. The minister said the focus of India has changed to entering into “robust trade agreements with the developed world as we did with Australia and are now negotiating with New Zealand in another 3-4 months. The agreement with the United Arab Emirates (UAE) is already in place and now “we are now close to closing second in the Gulf region. Trade agreements with more countries in the Gulf region are possible. “The rich countries.” The second FTA in West Asia that is nearing completion is with Oman. “What we did with the UK and four European Free Trade Association (EFTA) countries and are in active dialogue with the EU. We are in dialogue with the USA, we are in dialogue with Peru and Chile. Countries against whom we do not compete but complement. Where they have certain things to offer that India will love to have and we have certain things on offer which do not hurt their economies,” Goyal added.
Source: Financial Express
India and the UK reviewed progress on their Free Trade Agreement (FTA), aiming to sign it by September 2025. The pact, under legal review, may take up to 15 months to become operational and will boost cooperation in trade, tech, defence, and innovation. India and the UK on Thursday reviewed the progress made in the ongoing Free Trade Agreement (FTA) negotiations, with a view to charting out a clear, time-bound roadmap for its finalisation and implementation. “(Both sides) reiterated our shared goal of implementing the comprehensive and mutually beneficial FTA that reflects the ambitions of both nations,” commerce and industry minister Piyush Goyal posted on ‘X’ after meeting UK secretary of state for business and trade Jonathan Reynolds in London. The conclusion of FTA negotiations between India and the UK was announced on May 6. The agreement is getting ready to be signed. Work on documentation is going on and legal scrubbing is in progress. The process will be completed by August -September. After the agreement is signed, it has to be ratified by both countries before it comes into force. In the UK, the ratification is done by the Parliament and this process could take up to a year. For India, the ratification of agreements is done by the Cabinet. So, it could take up to 15 months from now for the FTA to become operational.
Goyal also participated in a special session on “UK-India Science, Technology and Innovation Collaboration” at the Science Museum in London on Thursday. The session explored opportunities for UK stakeholders to contribute to India’s expanding investments in digital public infrastructure, sustainable manufacturing, and green technologies, according to a statement by the ministry of commerce and industry. Discussions also covered efforts to make India a global manufacturing hub through Make in India, PLI schemes, and enhancing collaboration in sectors such as fintech, artificial intelligence, and creative industries. The FTA’s role in deepening cooperation in critical technologies, defence production, and advanced manufacturing was also highlighted. The session further examined how innovations like UPI and CoWIN can be scaled globally through bilateral collaboration, the statement added.
Source: Financial Express
Home textiles manufacturer Welspun Living Ltd on Thursday said it has inked an agreement with the National Skill Development Corporation (NSDC) to launch a large-scale skilling and employment initiative focused on operator-level roles in the textile sector. Under this initiative, Welspun Living will train and certify 1,000 candidates in its pilot phase, with at least 50 per cent women participation, particularly from underrepresented regions such as the North-Eastern states and Uttarakhand, the company said in a statement.
The total investment for the program amounts to Rs 4.25 crore.
Source: Business Standard
The rising tensions between Israel and Iran have added even more difficulties for textile exporters in Panipat, who are already experiencing impacts from global trade disruptions and the ongoing Russia-Ukraine war. As local industry sources stated, this latest conflict has brought additional confusion to the table, disrupted orders that were already in the pipeline, and slowed new orders. Panipat is a textile exporting city notorious for home furnishing, and had approximately US $ 927 million in exports in 2021. The biggest export market for Panipat is the United States, followed by various countries in Europe. Tensions and issues associated with these geopolitical risks are impacting demand in these key markets. Israel fundamentally imports textiles worth (US $ 59.9– US $ 83.8 million) each year from Panipat, while trading with Iran is limited; however, regional disturbances cause major logistical issues and a lack of overall market sentiment.
Recent US tariffs have also caused further complications. Exporters were provided a three-month exemption for pending orders and shipped orders; now, buyers are beginning to suggest price renegotiations and are pressuring exporters to reduce prices by 5% to 10% and even beyond. Ultimately, this has led to significant financial loss among mostly local businesses. Recently, exporters reported a sharp decline in orders and fear they will not be able to meet their obligations while operating in a greatly diminished profit margin. Representatives from the industry highlight the cumulative effects of global conflict and changes to trade that greatly impact international trade as a serious disruption, which leaves Panipat’s textile sector with an unstable and strained export environment.
Source: Apparel Resource
India’s trade deficit with the ten-member bloc widened to $45 billion in FY25
In a bid to increase Indian exporters’ utilisation of the India-ASEAN free trade agreement, which is way below 50 per cent, the government is collecting inputs from the industry to understand the possible reasons behind the under utilisation or non-utilisation to rectify the problems. “The Commerce Department wants to evaluate the operational challenges, procedural bottlenecks, or market-related barriers that may be preventing optimal use of the AITIGA framework,” a source tracking the matter told businessline. Formally known as the ASEAN-India trade in goods agreement (AITIGA), the free trade pact implemented in 2010 has resulted in a steady widening of trade deficit between India and the ten-member bloc. The members include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. India’s exports to the ASEAN bloc declined 5.7 per cent to $38.96 billion in FY25 while imports increased 5.6 per cent to $84.16 billion, increasing the trade deficit to $45.2 billion from about $8 billion in 2010. Moreover, more than half the exports taking place from India to the ASEAN countries are happening outside the free trade framework with exporters paying regular import duties (MFN rates) and not the preferential or zero-duties agreed under the pact.
India-ASEAN AITIGA
“The review of the India-ASEAN AITIGA is on, and the problems related to the ASEAN bloc identified by the Commerce Department could be taken up at the discussions,” the source said. As certificate of origin (COO) testifying that a particular product originates from the partner country is crucial to getting benefits under the FTA, the Commerce Department asked exporters a series of questions around it. Exporters were asked to state whether they are aware of the procedure for applying for COO and whether they faced problems in interpreting the rules of origin for their product category. They were also encouraged to share difficulties in tracing the origin of raw materials or intermediate inputs and mention the challenges and delays in obtaining COOs. Details were sought on possible experiences of conflicting interpretations of rules between Indian and ASEAN authorities. Other questions were related to costs involved, including documentation and agency fees, possible difficulties in customs clearance process and inconsistent guidance from logistics providers, agents, or consultants.
Source: The Hindu
India's textile and apparel (T&A) exports rose by 5.36 per cent to $6.180 billion during the first two months of the current fiscal 2025–26 (FY26). Of the total, apparel exports achieved double-digit growth, increasing by 12.80 per cent to $2.882 billion, while textile exports eased by 0.39 per cent to $3.297 billion in April–May 2025. The trend continued in May 2025, with apparel and textile exports showing similar patterns. The country’s T&A exports had increased by 5.36 per cent from $5.866 billion during the first two months of the previous fiscal 2024–25. Apparel exports rose by 12.80 per cent from $2.555 billion during the corresponding period, while textile exports declined slightly by 0.39 per cent from $3.310 billion.
In May 2025, apparel exports increased by 11.35 per cent to $1.511 billion from $1.357 billion in May 2024, whereas textile exports declined by 2.71 per cent to $1.685 billion from $1.732 billion. The share of T&A in India’s total merchandise exports rose to 8 per cent during April–May 2025 and to 8.25 per cent in May 2025, according to the Ministry of Commerce and Industry. Within the textile segment, exports of cotton yarn, fabrics, made-ups, and handloom products declined by 1.39 per cent to $1.929 billion in the first two months of FY26. Exports of man-made yarn, fabrics, and made-ups rose by 1.41 per cent to $793.27 million, while carpet exports saw a notable increase of 2.07 per cent to $246.93 million. In the month of May, exports of cotton yarn, fabrics, made-ups, and handloom products dropped by 4.29 per cent to $966.75 million, while exports of man-made yarn, fabrics, and made-ups decreased by 1.05 per cent to $409.48 million. Carpet exports, however, grew by 1.01 per cent to $132.74 million.
Imports of raw cotton and waste surged by 131.30 per cent to $189.18 million in April–May 2025, compared to $81.79 million during the same period last fiscal. Imports of textile yarn, fabrics, and made-ups rose by 18.92 per cent, increasing from $347.97 million to $413.81 million. In May, imports of raw cotton and waste surged by 133.14 per cent, from $43.88 million to $102.3 million. Similarly, imports of textile yarn, fabrics, and made-ups rose by 18.68 per cent to $220.69 million in the latest month. In FY25, the country’s apparel exports rose by 10.03 per cent to $15.989 billion, while textile exports grew by 3.61 per cent to $20.617 billion. Imports of raw cotton and waste surged by 103.67 per cent to $1.219 billion, and imports of textile yarn, fabrics, and made-ups increased by 8.69 per cent to $2.476 billion. In FY24, India’s T&A exports stood at $34.430 billion, marking a 3.24 per cent decline from $35.581 billion in FY23. Imports of raw cotton and waste were valued at $598.63 million in FY24, down 58.39 per cent from $1.439 billion in FY23. Imports of textile yarn, fabrics, and made-ups also fell by 12.98 per cent to $2.277 billion.
Sanjay K Jain, chairman of the ICC National Textile Committee, commented, “India succeeded in achieving double-digit growth in garment exports during the latest reported month as well as cumulatively in the first two months of the current fiscal. Raw cotton imports also increased due to Indian prices being higher than international prices, driven by a higher minimum support price (MSP) and the prevailing import duty.”
Source: Smart info Service
The LEI, a predictive measure designed to anticipate turning points in the business cycle, also contracted by 0.2 per cent over the six-month period from October 2024 to April 2025—marking a slowdown compared to the 0.9 per cent decline in the preceding six months, The Conference Board said in a press release. In contrast, Coincident Economic Index (CEI), which tracks current economic activity, declined slightly by 0.1 per cent in April to 103.6 (2016=100), following a 0.3 per cent increase in March. However, on a six-month basis, the CEI edged up by 0.1 per cent—an improvement over the 0.4 per cent drop recorded between April and October 2024. The LEI’s decline was influenced by weakness across several indicators, including new orders for investment goods and softening consumer confidence. Meanwhile, the CEI was supported by stable trends in industrial production and employment. Together, the LEI and CEI suggest that while the German economy continues to stabilise, significant headwinds remain.
Source: Fibre2fashion
The Bank of England’s Monetary Policy Committee (MPC) voted 6–3 to maintain the Bank Rate at 4.25 per cent at its meeting ending June 18, 2025. While three members supported a 25 basis-point cut, the majority favoured keeping rates unchanged amid ongoing inflation risks and global uncertainty. Inflation rose to 3.4 per cent in May from 2.6 per cent in March, driven by regulated and past energy price increases. Though inflation is expected to ease towards the 2 per cent target next year, there is a need for a cautious, data-dependent stance, maintaining a restrictive policy to curb lingering inflationary pressures, the MPC said in a statement. The UK economy remains subdued, with signs of slack in the labour market and moderating wage growth. The MPC acknowledged this weakness but stressed that policy would remain tight until inflation risks are sufficiently contained. The Bank also flagged geopolitical volatility and energy price spikes as key concerns, underlining that monetary policy is not on a pre-set course.
Source: Fibre2fashion
Islamabad, Pakistan’s textile exports surged to $16.37 billion during the first eleven months (July–May) of the current fiscal year 2024-25, reflecting a significant growth trend, as per the latest data released by the Pakistan Bureau of Statistics (PBS).The figures show that exports of textile goods grew by 7.37% compared to the same period in the previous fiscal year, when the country recorded $15.24 billion in textile exports. The performance of the textile sector remains pivotal, contributing around 55% of Pakistan’s total exports, which stood at $29.56 billion during July to May FY25. In a breakdown of the textile export performance, knitwear led the category with a robust increase of 14.46%, reaching $4.56 billion, up from $3.98 billion in the same period of FY24. Similarly, exports of readymade garments posted an impressive growth of 16.35%, climbing to $3.77 billion from the previous year’s $3.24 billion. Another key category, bed wear, saw its exports rise by 10.56% to $2.84 billion during the period under review, compared with $2.57 billion recorded in the same months of the prior fiscal year. These figures highlight consistent demand for Pakistan’s value-added textile products in international markets.
Source: PK Revenue
