The Production Linked Incentive (PLI) scheme for textiles has become a game-changer for the industry, catalysing modernisation and global integration. So far, the scheme has led to Rs. 7,343 crore (US $ 857 million) in investments, generated a turnover of Rs. 4,648 crore (US $ 542 million), and spurred exports worth Rs. 538 crore (US $ 63 million). Designed to support manufacturing in manmade fibre (MMF) apparel, fabrics, and technical textiles, the scheme offers financial incentives for five years, helping companies scale up operations and enhance their competitiveness on a global stage. In a recent boost to its scope, the Ministry of Textiles expanded the list of eligible products by including additional HS Codes under the Technical Textiles segment. Further, in a move to fast-track benefits, the Ministry approved amendments in February that enabled the early release of Rs. 54 crore (US $ 6.3 million).
The scheme’s payouts will span five financial years (FY ’26–FY ’30), with disbursements occurring from FY ’25 to FY ’29, backed by a total allocation of Rs. 10,683 crore (US $ 1.25 billion).
The scheme has two tiers of participation: a minimum investment of Rs. 100 crore (US $ 11.68 million) for Part 1 and Rs. 300 crore (US $ 35.03 million) for Part 2. Incentives are linked to achieving a 25% year-on-year growth in turnover. Technical textiles have emerged as a central focus, accounting for 57% of the 74 approved applications, which span across 42 companies.
Shaleen Toshniwal, Chairman of the Manmade and Technical Textiles Export Promotion Council (MATEXIL), emphasised the scheme’s foresight in recognizing the potential of technical textiles and MMF by incorporating a broad range of products.
By supporting the domestic production of advanced materials such as carbon fibre, glass fibre, and automotive safety equipment, the scheme is not only attracting foreign investment but also strengthening India’s global position in the textile sector.
These high-tech materials are critical to fast-growing industries, helping India align with international standards and compete with established exporters like China, Vietnam, and Bangladesh.
Source: Apparel Resource
In a bid to facilitate importers who may have underpaid Integrated Goods and Services Tax (IGST) dues, the Central Board of Indirect Taxes and Customs (CBIC) is likely to issue a standard operating procedure (SOP) to enable them to claim input tax credit (ITC) on IGST payments made to rectify shortfalls flagged after Customs clearance.
This new protocol for GST field formations could potentially unlock several hundreds of crores worth of input tax credits of importers that are currently stuck, straining their working capital flows, two government officials aware of the development told Business Standard.
Source: Business Standard
US President Donald Trump's latest tariff announcements have resulted in fresh uncertainty, with buyers expected to go slow on new orders. While textiles exporters seem to have got an advantage over Bangladesh, which has been slapped with 35% duty by Trump, industry is keeping close tabs on India's bilateral trade deal with the US as the American president has claimed the agreement with Vietnam allows him to impose a 20% tariff, although there may be product-specific concessions. In any case, the final word is not out on where tariffs settle in the coming weeks, with countries, including Bangladesh, once again rushing to Washington to rebalance the equations. "We need to watch how tariffs move. Buyers are a little confused at the moment," said V Elangovan, managing director of Tirupur-based SNQS International. What is adding to the complications is China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he added. Govt and industry has been pushing for zero duty for garments and home textiles, where Indian products are competitive, although it is unlikely even if a trade deal is worked out as the Trump administration has refused to remove the 10% baseline tariff applicable on all countries. At 10%, Indian exporters are seen to be better off than rivals, provided subsidies are not doled out to Chinese manufacturers. In natural garments, where India has traditional strength, the cost disadvantage is relatively small, 3-4%. However, in synthetic garments, the gap widens to 10-11% due to higher production costs, Apparel Export Promotion Council (AEPC) said. "India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar Thakur. With current tariff levels - India at 26%, Vietnam at 20%, and Bangladesh at 35% - India is seen to be competitive against Bangladesh in natural garments but faces pressure in the synthetics segment. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' Association. The big question is the ability of Indian garment makers to manufacture on a scale, especially given their reluctance to invest in capacity addition.
Source: Times of India
Brasilia: Noting ample opportunities for diversifying and expanding bilateral trade, Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva have set a target of 20 billion dollars to be achieved in the next five years, the Ministry of External Affairs said. The two leaders discussed the "entire spectrum of the partnership", Ministry of External Affairs (MEA) Secretary (East) P Kumaran said in Brasilia on Tuesday (local time), while addressing a special briefing on PM Modi's State visit to Brazil. He stated that PM Modi and President Lula discussed defence and security, agriculture, food and nutritional security, energy transformation and climate change, digital transformation, artificial intelligence and other emerging technologies and industrial partnerships.
The two leaders noted that ample opportunities lie ahead for diversifying and expanding bilateral trade. They set a bilateral trade target of 20 billion dollars to be achieved in the next five years. They also decided to elevate the level of trade talks and establish a ministerial-level mechanism for monitoring trade, commerce and investment-related matters," the MEA said. "PM requested the support of Brazil in expanding the India-Mercosur trade agreement, especially given the fact that Brazil is the pro-term president for the rest of the year, noting that such an expansion can bring mutual benefits for both sides. President Lula conveyed Brazil's support towards expansion of India-Mercosur PTA and instructed his team to work towards such expansion," he added. The MEA said that PM Modi was accorded a ceremonial welcome at the Brazilian President's official residence. "Prime Minister Narendra Modi arrived in Brasilia on a State visit yesterday evening after participating in the successful BRICS Summit held on 6th and 7th July at Rio. Prime Minister, on arrival, received a warm welcome from the Indian community. The visit to Brazil is the fourth visit in the last 10 years by PM Modi to Brazil. Infact, this is the second ever bilateral visit by an Indian Prime Minister to Brazil taking place after 57 years. The Prime Minister had earlier visited Brazil on three occasions, the first visit was in July 2014, followed by a visit in 2019, both were to attend BRICS Summits, and thereafter in November last year to participate in the G20 Summit in, all for multilateral engagements. He said, "The Prime Minister was received warmly by President Lula and was accorded a ceremonial welcome on his arrival at Palacio de Alvarada, the official residence of the President of Brazil. To begin with, the Prime Minister held a restricted meeting with President Lula followed by delegation-level talks. The Prime Minister took the opportunity to thank President Lula for extending warm and gracious hospitality to him and his delegation in Brasilia as well as in Rio." "During the bilateral talks, both leaders discussed the entire spectrum of the partnership. Let me try and list out some of the key areas that were discussed. It includes defence and security, agriculture, food and nutritional security, energy transformation and climate change, digital transformation, artificial intelligence and other emerging technologies, industrial partnerships, including defence industries, critical minerals, oil and gas, and also bioenergy and pharmaceutical industry, and also business and private sector cooperation, including trade and investments. They also had an opportunity to talk about healthcare and traditional medicine, tourism, space, science and technology, and cooperation in the area of digital public infrastructure," he added. According to Kumaran, the two leaders reiterated their commitment to work together towards climate action and sustainability. He said PM Modi reaffirmed India's support and wished President Lula success towards holding the COP30 climate change conference in Brazil. He said, "Highlighting the global challenge of climate change, both leaders reiterated their commitment to work together towards climate action and sustainability. Prime Minister reaffirmed India's support and wished President Lula success in holding the forthcoming COP30 climate change conference in Brazil." "Brazil's rich reserves of critical minerals, including lithium, copper and rare earth elements, aligned with India's need for secure and sustainable resources to drive its clean energy transition and industrial growth. Both leaders welcomed possible opportunities for collaboration in the area of mining, processing and refining of critical minerals," he added. Kumaran stated that PM Modi, during the meeting, proposed enhanced collaboration in sharing knowledge, best practices and technology transfer in various areas. He stated that the two leaders also discussed other areas of cooperation, including health and pharmaceutical sectors. He said, "Both leaders also acknowledged the importance of the agriculture sector and its significant contribution to the economies on both sides. The Prime Minister proposed enhanced collaboration in sharing knowledge, best practices and technology transfer in various areas. It was also noted that both sides signed an MoU on cooperation and agricultural research. Other areas of cooperation that were discussed include health and pharmaceutical sectors, especially on India's request for fast-tracking approval for entry into the Brazilian market for medicines that have been already approved by the US FDA or the European Directive for the Quality of Medicines (EDQM) for imports of medicines from India into Brazil." "The Indian side mentioned that this can result in cost-effective medical products in the Brazilian market. There was also discussion on collaboration in the area of digitalization and digital public infrastructure. There was also talk about enhancing people-to-people relations and connectivity, cooperation in the area of sports and sports management, capacity building, highlighting India's strengths in cricket and Brazil's strength in football. "After the delegation-level talks, there was a signing and exchange of MoUs and agreements. Three agreements were signed today and exchanged in front of the President and the Prime Minister. These were the agreements on cooperation in combating international terrorism and transnational organised crime, an MoU on cooperation for the sharing of successful largescale digital solutions for digital transformation, MoU on cooperation in renewable energy." Sharing details regarding the Memorandum of Understanding (MoUs) set to be signed between two nations, he said, "Three more agreements are ready to be signed and will be signed later today. These include an MoU on agricultural research between the concerned bodies on two sides, an agreement on the exchange and mutual protection of classified information, and an MoU for cooperation in the field of intellectual property, After the signing of the agreements, the Prime Minister was conferred with the Grand Collar of the National Order of the Southern Cross by President Lula. The Prime Minister dedicated this award to the Indian people and to the enduring friendship between the two countries." Kumaran stated that President Lula hosted a banquet lunch in honour of Prime Minister Modi and the two leaders discussed regional and multilateral issues of mutual interest. "It was followed by a joint press statement between the two leaders. President Lula hosted a banquet lunch in honour of Prime Minister Modi. Over lunch, the two leaders exchanged views on regional and multilateral issues of mutual interest, especially on issues concerning the Global South and their determination to enhance South-South cooperation, including collaboration across the two countries, was all global platforms of which India and Brazil are members, such as BRICS, G20, IPSA, and also the UN," he said. MEA Secretary announced that PM Modi invited President Lula for a visit to India and the invitation was accepted by the latter. He said, "The Prime Minister invited President Lula to pay a visit to India, and the invitation was generously accepted by President Lula." Kumaran said, "I just want to highlight one point that I missed out earlier. On security interviews, the Prime Minister thanked President Lula for expressing firm condemnation and extending support and solidarity to the people of India in the aftermath of the Pahalgam terror attack on the 22nd of April that killed 26 innocent citizens. The Prime Minister also reaffirmed that India stands firm in its resolve to fight terrorism in all its forms and manifestations. President Lula expressed his full support in the fight against the menace of terrorism." PM Modi arrived in Brazil on Saturday (local time) after concluding his visit to Argentina, where he held a bilateral meeting with Argentine President Javier Milei. After Brazil, PM Modi will head to Namibia on July 9 and address its parliament.
Source: The Economic Times
India and the US are expected to announce a mini trade deal soon. The bilateral trade agreement (BTA), which had been announced by Prime Minister Narendra Modi and US President Donald Trump earlier this year, is expected to be firmed up in phases. The two sides are “close to signing a trade deal,” Trump said on Monday, after announcing new reciprocal tariffs of 25-40% on imports from 14 countries, including Bangladesh, Malaysia, Japan, Thailand and South Korea, warning that any retaliation would attract even higher US tariffs.
Source: The Economic Times
Commerce and Industry Minister Piyush Goyal on Thursday asked the energy storage industry to reduce dependency on imports from certain countries and explore alternate sources of supply. He also suggested the industry to focus on research and development for creation of innovative products. "We must work to prevent distortions. We must reduce our dependency on particular geographies and look at alternative sources of supply, where we can have resilience in our supply chain," Goyal said at a function on energy storage.
He said the industry should look at newer technologies to cut overdependence on imports and focus on self-sufficiency. These remarks are important as sectors such as auto are facing challenges and difficulties due to restrictions being imposed by China on rare earth magnets. China's fertiliser export curbs are also creating issues for Indian players. The minister added that all industry stakeholders should join hands to develop charging and battery swapping infrastructure for faster EV (electric vehicle) adoption. They should also explore new opportunities to expand manufacturing in areas like critical minerals and semiconductors. He added that the government is taking measures to boost domestic manufacturing in the segment. "There is a remarkable 4,000 per cent increase in our installed solar capacity, our overall renewable energy capacity stands at 227 GW," he said, adding that "today solar photovoltaic module capacity has increased nearly 38-fold and our solar photovoltaic cell capacity has increased 21-fold".
Source: The Economic Times
The Singapore Indian Chamber of Commerce and Industry has welcomed the government's timely introduction of the Business Adaptation Grant to help local entrepreneurs navigate and adjust to the evolving cross-border tax landscape, especially impacted by the US trade tariffs. "This grant is available to all local businesses, especially Small and Medium Enterprises (SMEs)," the business chamber said. The Singapore government will launch a Business Adaptation Grant in October to help companies in the city-state adapt to the new US tariff environment, the Singapore Economic Resilience Taskforce (SERT) announced on Thursday.
The grant will be capped at SGD 1,00,000 (USD 78,000) per company, said Minister for Manpower Tan See Leng. While Singapore has not received a letter, neighbouring countries such as Malaysia and Indonesia will face tariffs of 25 per cent and 32 per cent, respectively. "This initiative reflects a proactive and strategic approach to supporting enterprises, particularly SMEs, as they face increasing complexities in internationaltrade," the Singapore Indian Chamber of Commerce and Industry (SICCI) said. With global tariff structures becoming increasingly dynamic, businesses must be equipped with the necessary tools, knowledge, and financial support to realign their operations and maintain competitiveness, said the Chambers. This grant will offer critical support to companies in reviewing supply chains, recalibrating pricing strategies, exploring alternative markets, and investing in trade advisory capabilities, SICCI said, stressing that it is "fully prepared to provide unwavering support to our members and the wider business community in accessing and leveraging this grant". "We will work closely with government agencies, particularly Enterprise Singapore, to ensure that businesses, especially those from the Indian business community, can effectively benefit from this initiative and develop sustainable trade strategies in response to the shifting global trade Environment," Neil Parekh, Chairman of the Singapore Indian Chamber of Commerce and Industry, said. Tan pointed out that small and medium enterprises will likely be able to receive a higher percentage of co-funding from the government than multinational firms. Small and medium enterprises employ around two-thirds of Singapore's workers, he added. Singapore plays an international hub role in international businesses' global dealings, the US being one of the main lucrative markets, according to international business analysis. The grant will cover two categories of businesses, and eligible companies will get support for a "time-bound period" of two years, according to reports.
Source: The Economic Times
Synopsis Speaking at the BRICS Finance Minister and Central Bank Governors meeting, Finance Minister Nirmala Sitharaman highlighted India's demonstrated resilience through a combination of strong domestic demand, prudent macroeconomic management, and targeted fiscal measures. Speaking at the BRICS Finance Minister and Central Bank Governors meeting, Finance Minister Nirmala Sitharaman highlighted India's demonstrated resilience through a combination of strong domestic demand, prudent macroeconomic management, and targeted fiscal measures. The finance minister, as part of her intervention at the meeting, said that India's policy response to trade and financial restrictions has focused on diversifying markets, promoting infrastructure-led growth, and implementing structural reforms aimed at boosting competitiveness and productivity. The Union Finance Minister underlined India's view that BRICS is a vital platform for advancing inclusive multilateralism, especially when global institutions are facing a crisis of legitimacy and representation -- BRICS must lead by example by reinforcing cooperation, advocating credible reforms, and amplifying the voice of the Global South.
Finance Minister Sitharaman also said that while South-South cooperation remains vital in advancing climate and development goals, the Global South should not be expected to carry the main burden of climate action, and BRICS countries are well placed to deepen cooperation on sustainable development. According to the joint statement put out on Sunday, hours before the Summit, the Finance Ministers and Central Bank Governors of the BRICS countries have called on advanced economies and the international financial system to provide "substantial" finance for climate mitigation in developing economies.
"We call on advanced economies and other relevant actors in the international financial system as well as the private sector to provide substantial finance for climate actions in developing countries, including by expanding concessional finance and increasing private capital mobilisation," the joint statement read. "Given the significant adaptation needs of EMDEs (Emerging Market and Developing Economies), we call on international financial institutions to scale up support for adaptation and to help create an enabling environment that encourages greater private sector participation in mitigation efforts," the joint statement continued. India, a BRICS member, has always been vocal about climate finance arrangements, primarily from the developed countries that are huge carbon emitters. India continued to be vocal about the need for adequate finance, particularly for the Global South. Climate finance typically refers to any financing that seeks to support mitigation and adaptation actions that will address climate change. Developing countries have been of the view that developed nations bear a greater historical responsibility for emissions and should take the lead in mitigation and finance. Finance Ministers and Central Bank Governors of the BRICS countries had gathered in Rio de Janeiro, Brazil, on July 5, 2025, under the theme "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance". BRICS member countries encompass almost half of the world's population, spreading across four continents, and their economies account for nearly 40 per cent of global Gross Domestic Product.
Source: The Economic Times
India and Brazil, both wary of the tariffs that US President Donald Trump has threatened to impose, and looking beyond America for markets for their respective produce, are set to sign almost half a dozen agreements aimed at increasing their bilateral trade during Prime Minister Narendra Modi’s meeting with Brazilian President Luiz Inacio Lula da Silva. At the time of writing of this report, the meeting was ongoing. India's trade with Brazil is the largest compared to its trade with any other country in Latin America. However, it is far below Brazil’s trade with China, the US, Argentina, and Germany. India-Brazil bilateral trade had reached $16.6 billion in 2022-23, and following the drop in oil and gas prices, it is now around $12.2 billion. Hours before he met the Indian PM in Brasilia for a bilateral meeting on Tuesday evening (India time), Lula joined his South African counterpart Cyril Ramaphosa in criticising Trump for his threat to slap extra tariffs against Brics member countries. On the final day of the two-day Brics Summit, which Brazil had hosted, Lula said the US President was “irresponsible for threatening tariffs on social media”. He also called on world leaders to find ways to reduce international trade’s reliance on the dollar. In their Rio de Janeiro declaration, Brics members expressed “serious concerns” over tariffs, slammed soaring defence spending, and condemned airstrikes on Brics member Iran, but the group did not mention the US by name. The grouping also tasked its finance ministers and central bank governors to continue the discussion on the Brics Cross-Border Payments Initiative, and appreciated the progress made by the Brics Payment Task Force (BPTF) in identifying possible pathways to support the continuation of discussions on the potential for greater interoperability of Brics payment systems. The effort has been to reduce the dominance of the US dollar in international trade.
Source: Business Standard
UKFT has created a new best practice guide for exporting used textiles, which is available exclusively for UKFT members. The document provides an overview of key requirements for exporting used textiles and highlights the necessary steps to ensure regulatory compliance. It is part of UKFT’s new Reuse & Recycling membership for textile collectors, sorters, graders, mechanical recyclers, upcyclers and recycling innovators, which aims to power the circular economy through partnership. The export of used textiles is a vital component of the circular economy, enabling the reuse, repurposing and recycling of clothing and materials across global markets. When done responsibly, it extends the life of textiles, supports local economies and reduces environmental impact. However, the movement of used textiles across borders is governed by complex UK and international regulations, particularly relating to the classification of waste and the control of waste shipments. It is therefore essential that all UKFT members involved in exporting used textiles fully understand and follow best practices to remain legally compliant.
Beyond legal obligations, there is increasing public and media attention on the international trade of used clothing. Reports of textile dumping, environmental harm and shipments sent to countries with import bans or limited processing infrastructure can cause significant reputational damage — not only to the exporter but also to suppliers, collection partners and the wider sector.
Maintaining rigorous compliance standards and transparent practices helps protect your business, your partners, and the credibility of the UK textile reuse and recycling industry as a whole. This guidance has been developed to support UKFT members in navigating the regulatory landscape and upholding responsible export practices.
Source: ukft.org
Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim recently urged the Association of Southeast Asian Nations (ASEAN) to ensure closer alignment between its foreign and economic policy tracks to strengthen regional cohesion amid rising geopolitical and trade tensions. He said ASEAN foreign ministers and economic ministers must move in concert to face challenges, stressing that such synergy is essential to translate ASEAN’s unity into tangible outcomes. Tools traditionally used to promote growth, including trade and investment, are now increasingly being deployed to exert political pressure and fragment global cooperation, Anwar cautioned, while addressing the opening ceremony of the 58th ASEAN Foreign Ministers’ Meeting in Kuala Lumpur. “This trend is not a passing storm, but the new weather of our time,” he was quoted as saying by a news agency. Power has always shaped trade, but today, it increasingly defines it, he said, citing the proliferation of tariffs, export restrictions and investment barriers as instruments of geopolitical rivalry. Against this backdrop, ASEAN must confront today’s realities with ‘clarity and conviction’, ensuring that unity is not only expressed in declarations but also embedded in institutions, strategies and decision-making, he emphasised. Anwar called on ASEAN to strengthen internal integration by expanding intra-regional trade and investment, as well as accelerating sectoral integration, to enhance resilience and relevance. He also rejected the notion that Southeast Asia should be subject to external spheres of influence, stressing that ASEAN must deliberately and coherently chart its own course.
Source: The Sun.my
Business conditions in Australia showed a strong rebound in June, suggesting a potential turning point after a lacklustre start to 2025, according to the latest National Australia Bank (NAB) Business Survey. The survey revealed a spike in business conditions to 9 index points—marking the first rise in trend terms this year—while business confidence rose for the third straight month, reaching its highest level in trend terms in over a year. “After a volatile but soft year for business confidence, we have seen a trend improvement over the past three months,” said Gareth Spence, head of Australian Economics at NAB. “It is now around its long-run average of 5 index points.” The report highlighted significant gains across key subcomponents in June. Trading conditions surged 10 points, profitability increased by 8 points, and the employment index rose by 3 points. Business conditions increased sharply in the month driven by notable improvements in trading conditions and profitability,” Spence noted. “The rebound in profitability is encouraging, particularly if sustained, as there was a risk that ongoing weakness would eventually flow through to weaker hiring.” Improvements were seen across most industries, with manufacturing and retail experiencing strong recoveries after May’s declines. However, conditions remained strongest in services such as finance, business and property, and recreation and personal sectors. Capacity utilisation rose for the second consecutive month, reaching 83.3 per cent—well above the long-run average—while capital expenditure climbed to +10 index points. Forward orders also continued their gradual rise, though still sit just below the long-run average of 1 index point.
Input costs presented a mixed picture. Labour cost growth edged down slightly to 1.5 per cent, while purchase cost growth also stood at 1.5 per cent. Final product prices grew by 0.6 per cent, while retail price growth eased from 1 per cent to 0.6 per cent. “The survey is encouraging that sluggish momentum in early 2025 will improve into the second half, with a notable increase in conditions in the month. An improvement in confidence is also welcome given the raft of negative headlines globally over recent months,” added Spence. “While there were large moves in the month, and we know that the monthly survey can be volatile, the hope is at least some of these trends will be sustained over coming months.”
Source: Msn
The United States would impose a 35-per cent tariff on imports from Canada beginning next month, President Donald Trump yesterday said. In a letter released on his social media platform Truth Social, Trump told Canadian Prime Minister Mark Carney the new rate would be effective from August 1 and would go up if Canada retaliated. The reasons cited by him for the decision are Canada failing to cooperate on key issues, particularly the smuggling of fentanyl into the United States, and ‘unfair’ trade practices. He told a US news outlet that he planned to impose blanket tariffs of 15-20 per cent on most other trade partners. "Not everybody has to get a letter. You know that. We're just setting our tariffs," Trump said in the interview. "We're just going to say all of the remaining countries are going to pay, whether it's 20 per cent or 15 per cent. We'll work that out now," Trump was quoted as saying by the network.
Trump has till now released tariff hike letters to 22 nations.
Source: Fibre2fashion
