Union Commerce and Industry Minister Piyush Goyal on Tuesday said India is firmly on track to become a $5 trillion economy by 2027 despite global turbulence, driven by a collective national effort and strong leadership under Prime Minister Narendra Modi. Speaking at a virtual session organised by the Merchants' Chamber of Commerce and Industry (MCCI), Goyal also hailed the government's decade-long economic reforms as transformational rather than incremental. "We are well on track to achieve the $5 trillion economy goal in the next three years. This will be the first milestone on our journey to 'Viksit Bharat' by 2047," Goyal said. Taking note of the global economic volatility and geopolitical headwinds, the minister said India must navigate turbulent waters with unity and determination. "Great economies aren't built in calm waters. This is India's time. We must seize the moment and work together to claim our rightful place among the world's leading nations," he said. Goyal described the government's development model as one focused on inclusive, sustainable, and honest growth, emphasising service, good governance, and innovation. "The last 11 years have not been about incremental change. We have aimed for quantum leaps," he said. Citing economic indicators, Goyal said India has moved from being part of the 'Fragile Five' to becoming one of the top five global economies. He highlighted the country's foreign exchange reserves, which recently touched $698 billion, robust banking sector health, and inflation levels averaging among the lowest in post-independence history. He also praised Prime Minister Modi's personal commitment to citizen welfare, referencing the government's swift evacuation efforts in global conflict zones, like Iran and Ukraine.
Referring to the Emergency imposed in 1975, the minister drew a contrast with present-day India, calling it an "oasis of stability" in a globally unstable ecosystem. He also pointed to the government's aggressive free trade agreements (FTAs) with developed economies such as the UK, Australia, and the EU, which he said are designed to benefit Indian exporters and MSMEs. "The FTAs we are signing are not with weak or competing economies but with advanced markets. These are complementary relationships, offering immense opportunities for our industry," he said, urging exporters and startups to take advantage of these deals. Touching on the potential of AI and emerging technologies, Goyal said India is ready to lead in sectors like artificial intelligence, quantum computing, and 3D printing.
"Rather than fearing job losses, we should focus on the opportunities to create new employment. Our youth are aspirational, and the government is working with industry bodies like NASSCOM to build AI skills," he added. He concluded by urging businesses to expand and bring economy of scale to foray into new markets and focus on innovation-led exports. "This is a virtuous cycle -- scale leads to competitiveness, which in turn fuels exports and prosperity. India's growth story belongs to all of us," he added.
Source: The Economic Times
India’s textile sector, with roots tracing back to the Indus Valley civilisation, is undergoing a digital transformation, particularly within its micro, small, and medium enterprises (MSMEs). Textile hubs like Tiruppur in Tamil Nadu are adopting artificial intelligence (AI) across their manufacturing value chains, from designing and sewing to logistics and spinning. The Tiruppur Exporters’ Association (TEA) notes that AI has improved production efficiency by 10%, helping the region regain its status as a knitwear export powerhouse, contributing 55% of the country's total. Tiruppur’s knitwear exports crossed Rs. 40,000 crore (US$ 4.61 billion) in FY25 for the first time. Automation through Computer-Aided Design/Computer-Aided Manufacturing (CAD-CAM) machines, precision stitching tools, and predictive maintenance has enabled output gains and reduced wastage, even as the sector grapples with labour shortages.
MSMEs nationwide are increasingly adopting smart technologies, including Software as a Service (SaaS) platforms like Reverse Resource, which digitise supply chains and support sustainability goals. AI-based sewing machines from global manufacturers such as Yamato and Juki are becoming common in Tamil Nadu’s factories. Even small units are embracing tools like ChatGPT and Canva to remain relevant in global markets. With growing demand from international retailers such as Walmart, GAP, and Marks & Spencer, Indian firms are scaling up AI-powered infrastructure. However, while advanced stitching robots are being trialled in Japan, Indian industry leaders stress that AI adoption should enhance, not replace, labour. The sector is striving for a hybrid approach where technology upgrades the skills of existing workers and boosts productivity while preserving employment opportunities.I)
Source: IBEF
The Central board of indirect taxes and customs (CBIC) Tuesday outlined detailed procedures for review, revision, and appeal for orders passed by Common Adjudicating Authorities. The move aims to eliminate jurisdictional confusion for cases where companies have received complex, multi-state notices from directorate general of GST intelligence (DGGI), where the lack of defined appellate authority created procedural delays and litigation uncertainty. The instruction specifies that Principal Commissioner or Commissioner of Central Tax under whom the Common Adjudicating Authority is posted will serve as the reviewing authority under Section 107 of the CGST Act. The same authority will also hold revisional powers under Section 108. Both sections deal with taxpayers appeal against the demand or notice. Appeals against orders from the Common Adjudicating Authority will lie with the Commissioner (Appeals) having territorial jurisdiction over the Principal Commissioner or Commissioner of Central Tax under whom the authority is posted. The Principal Commissioner or Commissioner of Central Tax will represent the department in appeal proceedings and may appoint a subordinate officer to file departmental appeals. Experts said this will help industries receiving multiple notices and reflects the government’s evolving commitment to procedural fairness in high-stakes investigations across sectors. "This circular will have far-reaching implications across sectors frequently targeted in large-scale GST investigations, including banking, insurance, online gaming, hospitality, real estate, FMCG, manufacturing, and logistics," Rajat Mohan, Senior Partner, AMRG & Associates said.
Source: The Economic Times
The process of legal scrubbing of the India-UK free trade agreement (FTA) text is progressing at a faster pace, and the pact is expected to be signed by the end of July, an official said on Tuesday. To give an impetus to the process, Commerce Secretary Sunil Barthwal is in London with his official team. Barthwal will meet UK Secretary of State for Business and Trade Jonathan Reynolds and other British senior officials during his two-day visit. Representative image. The two countries announced the conclusion of the negotiations on May 6. It will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030. The world's fifth and sixth-largest economies concluded the deal after three years of on-off negotiations. Once the FTA is signed, it will require approval from the British Parliament and India's Cabinet before it can take effect. The implementation is likely to take about a year after the signing. "The agreement is likely to be signed by July end. India's legal team is also there in London for the legal scrubbing of the text. The pact's text would be put in public domain after signing," the official said, adding the commerce secretary's visit is important, as issues such as the implementation process of the pact would be discussed. Commerce and Industry Minister Piyush Goyal was also in London earlier this month. He held discussions with Reynolds on issues related to the implementation of the FTA. Prime Minister Narendra Modi has invited UK Prime Minister Keir Starmer to India.
Source: The Economic Times
The statistics ministry is integrating artificial intelligence (AI) into its operations, with AI-enabled chatbots becoming part of key surveys, to provide accurate and up-to-date data to policymakers to help them make evidence-based policy decisions, the minister said. "To facilitate self-compilation by enterprises in the web-portal based Capex survey, an AI-powered chatbot has been integrated into the portal," Rao Inderjit Singh, minister of state (independent charge) for statistics and programme implementation, told ET. "This chatbot assists respondents by providing guidance on the concepts used across various sections of the survey questionnaire," he explained. The Capex survey tracks capital expenditure trends of private enterprises. The ministry of statistics and programme implementation (MoSPI) uses AI and machine learning-enabled chatbots for the Annual Survey of Unincorporated Sector Enterprises (ASUSE) as well. It is also introducing new surveys and updating existing ones to better reflect present-day economic and social realities, Singh said. The idea is to leverage technology to provide timely data to help the government bring in policies to improve quality of life of Indians and realise Viksit Bharat 2047.
A pilot study on the unincorporated construction sector is scheduled for JulyDecember, while a Household Income Survey will be launched from February 2026 to estimate the average income of rural and urban households, the minister said. This will help the tourism ministry to prepare the next Tourism Satellite Account (TSA), Singh said. TSA is a standard statistical framework to measure tourism’s contribution to a country’s economy.
Building on a pilot conducted earlier, the MoSPI will also launch a full-scale Annual Survey of Service Sector Enterprises (ASSSE) from January 2026, with results expected in 2027, Singh said. He quoted Prime Minister Narendra Modi to stress that “every policy and scheme can be made more efficient and accessible through technology” and that data-driven decision making is key for “more accurate” policy design and implementation. The Periodic Labour Force Survey (PLFS) methodology was revamped in January. Under the new framework, reports are released monthly, with rural data included in quarterly releases. Annual reports will follow the calendar year rather than the earlier July-June cycle. "The updated PLFS design will allow (with state participation) generation of annual district level estimates for most districts across India. It is also planned to release ASUSE results quarterly instead of annually," Singh said. The MoSPI is set to launch two new surveys from July - National Household Travel Survey (NHTS) and Domestic Tourism Expenditure Survey (DTES). NHTS aims to assess the spatial origin destination matrix for different transportation modes and influencing factors affecting the mode, destination choice, the price elasticity of travel demand by mode. The railway ministry and the government will use this data for transport planning, Singh said. DTES will gather information on trip purpose, mode of transport, accommodation, final destination within the country, and tourism-related expenditure.
Source: The Economic Times
FIEO expects some short-term impact on demand and logistics—particularly in the Gulf region, which serves as a crucial hub for Indian exports. The Federation of Indian Export Organisations (FIEO) is anticipating a short-term impact on demand and logistics due to the ongoing Israel–Iran conflict. The government and industry are jointly monitoring developments to ensure minimal disruption, says S. C. Ralhan, President, FIEO.
“While geopolitical tensions in the Middle East, including the ongoing Iran–Israel conflict, pose certain challenges to global trade dynamics, India’s export sector remains resilient and adaptive. Our trade with both Iran and Israel, while important, constitutes a small share of our overall export–import basket,” he said. FIEO expects some short-term impact on demand and logistics—particularly in the Gulf region, which serves as a crucial hub for Indian exports. The apex body of Indian exporters foresees increased shipping costs, longer transit times, and rising marine insurance premiums adding pressure, especially in price-sensitive sectors due to the conflict.
According to Ralhan, Indian exporters have time and again demonstrated agility in re-routing shipments, diversifying markets, and managing financial exposures. The robust base of MSMEs and large-scale exporters, coupled with strong government support mechanisms, will help cushion any near-term shocks, he said. While crude oil price volatility can influence both inflation and logistics costs, FIEO relies on India’s diversified energy procurement strategy and the Reserve Bank’s proactive stance to help maintain liquidity and macroeconomic stability. “Overall, while there are temporary headwinds, we see this as an opportunity for Indian exporters to explore alternate routes, strengthen regional partnerships, and consolidate India’s role as a reliable trade partner in uncertain times. FIEO is committed to supporting exporters with timely guidance, market intelligence, and policy advocacy to ensure continued momentum in our global trade journey,” Ralhan said. Meanwhile, Delhi-based think tank Global Trade Research Initiative (GTRI) points out that while the immediate impact on bilateral trade with Iran and Israel amounts to $1.2 billion in exports and $441.8 million in imports with Iran, and $2.1 billion in exports and $1.6 billion in imports with Israel, a wider regional escalation could threaten India’s much larger trade with the broader West Asian region—including Iraq, Jordan, Lebanon, Syria, and Yemen—where Indian exports total $8.6 billion and imports stand at $33.1 billion.
Source: Fortune India
Between 2017 and 2024, China’s proportion of US textile and apparel imports fell by 14 percentage points, whereas other Asian economies collectively picked up 10 points. Notably, many of these emerging new players for US imports have at the same time strengthened their own sourcing relationships with China—implying a nuanced rerouting of the value chain and not pure decoupling. In those situations where geopolitical fragmentation gains speed, McKinsey estimates that this trend of indirect trade might not just continue but also grow stronger. The company’s computer models provide for a 20 per cent tariff on trade between geopolitically remote economies, but no additional tariffs when products move through intermediate economies. Consequently, China still ships intermediate products to Southeast Asia and India, where the latter finish them up and export to Western markets—basically maintaining trade volumes but reconfiguring trade channels. Conversely, a scenario of diversification—in which nations voluntarily reduce dependence on any particular partner—would halt China’s dominance in both intermediates and finished goods, resulting in decreased overall trade volume for the industry. McKinsey also cautions that by 2035, somewhere between one-third to a majority of world trade will be vulnerable to volatility, depending on geopolitical events. Long geopolitical value chains for manufacturing, such as electronics, textiles, and machinery, are most vulnerable.
But not all trade corridors are equally at risk. Corridors between emerging markets can be more likely to withstand a breakup of the global economy. Of the globe’s 50 largest trade corridors currently, McKinsey foresees 16—mostly between emerging economies—to experience strong growth even in a fragmented world. Meanwhile, nine corridors connecting advanced economies with China and Russia might shrink dramatically, with the rest following divergent paths. As global players rethink their sourcing strategies, the textile-apparel industry need not contract—it can rewire instead.
Source: Apparel Resource
India and the United Kingdom have finalised a landmark Free Trade Agreement (FTA), poised to revolutionize bilateral trade—especially in textiles and apparel. Negotiations concluded on May 6, 2025, following nearly three years of talks, culminating in a pact that will eliminate tariffs on 99 per cent of Indian exports to the UK and reduce UK tariffs on 90 per cent of its exports to India. For India’s ready-made garments (RMG) sector, the agreement is truly transformative. Historically, UK import duties of around 8–12 per cent put Indian exporters behind peers like Bangladesh, Turkey, Vietnam, and Cambodia. The FTA removes these duties, offering India a 12 per cent tariff advantage over China and leveling the playing field with Bangladesh. With the UK importing roughly USD 20 billion in RMG annually, India—currently holding a 6 per cent share—could potentially double its share to about 12 per cent, adding USD 1.1–1.2 billion annually. This tariff relief is expected to enhance profit margins, drive scale, and spark investment across the textile ecosystem, particularly in industrial hubs like Ludhiana, Tiruppur, Surat, and Moradabad. Experts forecast full impact by fiscal year 2027, with India’s exports to the UK expected to nearly double within a few years .
Beyond textiles, the FTA extends across diverse sectors—footwear, gems, marine products, chemicals, and automotive parts—offering duty relief and opening new export avenues. It also includes a social security agreement benefiting Indian professionals in the UK and vice versa. Overall, the India‑UK FTA marks a strategic milestone in strengthening economic relations. It is expected to boost bilateral trade by approximately Euro 25.5 billion by 2040, increase market access, support jobs, and foster economic ties between the two nations.
Source: KNN India
Türkiye and Morocco have agreed to intensify their trade cooperation, aiming to address a significant trade imbalance largely driven by Moroccan imports of Turkish textiles. The move comes as Morocco’s trade deficit with Türkiye reached around $3 billion, its third-largest source of deficit after the US and China. Previous attempts to protect Moroccan industry included a 90% tariff on Turkish textile and clothing imports, but local companies still depend on Turkish materials to meet domestic and international demand. Both countries have now agreed to: elevate trade volume, implement recommendations from a technical committee; organise a business and investment forum; establish direct communications channels between trade ministries; launch joint production projects – especially in textiles; and enhance cooperation in entrepreneurship, consulting, and infrastructure development – especially with an eye on projects linked to the 2030 FIFA World Cup, co-hosted by Morocco.
Source: Eco Textiles
Bangladesh’s ready-made garment (RMG) exports to the European Union surged by 23.98% in the first four months of 2025, totalling $8.07 billion, up from $6.51 billion in the same period of 2024. Volume increased by 19.71%, while average unit price rose by 3.57%. Meanwhile, China’s apparel exports to the EU grew by 21.49% to $8.39 billion, with a 7.37% rise in unit price. The figures come from the statistical office of the EU, Eurostat. It says the EU’s total apparel imports increased by 14.21% to $32.49 billion in the same period. Bangladesh remains the EU’s second-largest apparel supplier, closing the gap with China in both value and volume. Key growth drivers include post-pandemic recovery, competitive pricing and improved compliance and sustainability standards in Bangladesh, and favourable trade terms.
Source: Eco Textiles
US trade tariffs threaten to more severely affect export gateways in Germany—cities like Hamburg with large seaports that serve as key logistics hubs, according to CBRE Investment Management (CBREIM). These markets were already affected by stalled prime rent growth over the last few quarters.
Supply chains will only be affected by a reduction in trade to the United States (currently accounting for 10 per cent of Germany’s total exports), but not by the remaining 90 per cent of exports to other markets. Europe makes up around 67 per cent of Germany’s exports, with Asia accounting for 16 per cent—both larger than the United States, and, therefore, provide potential upside to any rebalancing in trading partners and supply chains, should that occur in the future, CBREIM said in a note. While port cities like Hamburg and Bremen are more closely linked to global export markets, others such as Berlin and the Ruhr region are less exposed due to strong domestic demand, which is also reflected in the recent strength of prime rent growth in those cities relative to other submarkets, it noted. Berlin’s growing and diverse domestic consumer base makes it less dependent on international trade compared to manufacturing-heavy cities and industrial hubs like Stuttgart or Wolfsburg. The Ruhr region has benefitted from strong infrastructure including excellent connectivity via motorways and rail, increasing its strength as a last mile logistics market. CBREIM has made an upward revision of 40 basis points to Germany’s five-year gross domestic product (GDP) forecast. Most of this growth is expected to be front-loaded, with strong growth in 2026 before stabilising thereafter. The start of 2025 marked an interesting shift for the German economy as it welcomed a new government, shifted policy gears with reforms to the historic debt brake and brought in expansionary fiscal policy. The new German government’s expansionary fiscal policy, promising to invest significantly in infrastructure and climate protection, should also help to revive and rebalance its growth prospects in the medium term, CBREIM remarked. Its risk analysis showed that the greatest risks from US tariffs affected specific sectors rather than the economy as a whole. Industries like automobiles and pharmaceuticals will experience greater risk due to their dependency on US exports, as opposed to other sectors. The United States is just one of Germany’s trading partners. Germany’s exports to both Europe and Asia are higher than to the United States and potential exists for the trading ties to these higher share regions to expand. In the new geopolitical environment, Germany is expected to perform well given the changes in government fiscal policy, growing trading partner optionality and submarket strengths, CBREIM added.
Source: Fibre2fashion
Malaysia has signed an Economic Partnership Agreement with European Free Trade Association (EFTA) member countries—Switzerland, Norway, Iceland and Liechtenstein—in Tromso, Norway, strengthening international trade relations. The agreement offers opportunities for economic cooperation and trade to grow further and enables stakeholders on both sides to achieve valuable tariff savings. The parties also signed a memorandum of understanding (MoU) on cooperation and capacity building, EFTA said in a joint press statement.
The agreement is an ambitious and broad-based agreement covering trade in goods, services and investment. Furthermore, this milestone agreement includes areas such as economic cooperation, trade and sustainable development, intellectual property rights, rules of origin, competition, trade facilitation, government procurement, sanitary and phytosanitary measures, and technical barriers to trade. Upon implementation, over 90 per cent of Malaysia’s exports—including all industrial goods—will gain permanent duty-free access to EFTA markets, replacing the benefits once offered under the generalised system of preferences (GSP), as per Malaysia’s media reports. The Malaysia-EFTA Economic Partnership Agreement (MEEPA) was signed by Malaysia’s Minister of investment, trade and industry Tengku Datuk Seri Utama Zafrul Aziz, Minister of trade of Norway and current EFTA chair Cecilie Myrseth, Minister of finance and economic affairs of Iceland Daði Már Kristófersson, Deputy Prime Minister of Liechtenstein Sabine Monauni, and Vice President of Switzerland Guy Parmelin. “At a time when the international trading system is under pressure, the signing of the Economic Partnership Agreement between the EFTA States and Malaysia is a powerful statement of our shared commitment to open, rules-based trade. It strengthens our economic ties, supports sustainable growth and provides opportunities for businesses and workers on both sides,” said Myrseth. “This Economic Partnership Agreement represents more than just a trade agreement. MEEPA is a powerful tool for Malaysia and the EFTA States to enhance our bilateral trade and investment partnership, while strengthening our resilience in the face of global challenges. The signing of MEEPA is only the beginning. Together, our priority must be to fully operationalise this agreement and maximise its potential by facilitating greater collaboration between our governments and businesses,” said Zafrul.
Source: EFTA
