The Central Board of Direct Taxes will intensify efforts to combat tax evasion. They plan to use data analytics and artificial intelligence. This will help identify discrepancies in income reporting. The Income Tax Department has access to vast digital transaction data. They also exchange information with overseas agencies. This will enable more effective detection of evasion.
Source: The Economic Times
Morgan Stanley said states and union territories will play a crucial role in India's transformation of becoming the world's third-largest economy by 2028 and reach a gross domestic product (GDP) of $10.6 trillion by 2035. "Their policy frameworks are capable of influencing India's rise as a global manufacturing hub," according to the report titled Building Block of India's Prosperity. The forecast of $10.6 trillion considers the likelihood of Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka achieving an economic size of around $1 trillion between 2030 and 2035.
The report highlights that nine out of 18 major states have a per capita GDP above the all-India average of $2,547. These include Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, and Telangana. In terms of growth, four states - Assam, Gujarat, Karnataka, and Odisha - have recorded a five-year real GDP compound annual growth rate (CAGR) higher than the national average of 6.1%. Seven states, including Assam, Bihar, Odisha, and Uttar Pradesh, have capital expenditure as a percentage of GDP above the national average of 3.2%. However, the report also noted key challenges that vary across states. These include geographical and natural advantage/disadvantage, governance issues, capacity constraints, policy implementation, fiscal capacity and debt burden, financial autonomy, and infrastructure deficits and disparities.
Source: The Economic Times
Synopsis The proposed India-UK trade pact, set to be signed on July 24 during Prime Minister Modi's visit, is projected to significantly boost Indian exports across various sectors. FIEO anticipates benefits for textiles, leather, gems and jewellery, pharmaceuticals, and engineering goods. The proposed trade pact between India and the UK is likely to benefit sectors such as textiles, leather, gems and jewellery, pharmaceuticals, marine and engineering goods, exporters' body FIEO said on Wednesday. The agreement will be signed on July 24, during Prime Minister Narendra Modi's visit to the UK. It is expected to help double bilateral trade by 2030 to USD 120 billion.
The Federation of Indian Export Organisations (FIEO) also said that the agreement is likely to eliminate tariffs on Indian garments and textiles, enhancing their competitiveness in the UK market.
It will also strengthen exports in high-value sectors like gems and jewellery and pharmaceuticals. Improved market access and reduced tariffs will further benefit Indian leather and footwear, auto components, spices, tea, and processed foods, it said, adding the FTA is also expected to streamline regulatory approvals for Indian pharmaceutical products in the UK. Moreover, it could ease mobility and open up new opportunities for Indian IT, business services and professional services firms, FIEO President S C Ralhan said.
Source: The Economic Times
The India-UK Free Trade Agreement (FTA) will significantly improve market access and will boost bilateral trade by around $34 billion annually, the British government said on Thursday, hours before formalising the landmark deal. The FTA, billed as the UK's most economically significant bilateral trade deal since leaving the European Union, will be signed in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. The two prime ministers will also unveil an "UK-India Vision 2035" to take their partnership to new heights in a time of rapid global change.
The UK said Indian consumers will benefit from improved access to the best British products -- from soft drinks and cosmetics to cars and medical devices -- as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in. The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses' exports to the UK, it said in a statement. "Our landmark trade deal with India is a major win for Britain," Starmer said. "It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change," he said. The UK said the ambitious new vision for 2035 will go beyond trade, with reinvigorated mutual commitment to drive prosperity and innovate and deepen defence cooperation through a new Defence Industrial roadmap. It will provide for securing "our borders, tackle climate change and nurture educational connections." On the FTA, the UK said it is forecast to boost bilateral trade by 25.5 billion pounds (USD 34 billion) yearly. It is both India's most comprehensive deal ever, and the UK's most economically significant bilateral trade deal since leaving the EU, the UK said. "It significantly improves market access for businesses in both countries, leading to cheaper products and services for consumers," it said. PM Modi landed in London on Wednesday as part of his two-nation trip to the UK and the Maldives.
Source: The Economic Times
Often referred to as the ‘Textile Capital of India’, Surat boasts a textile legacy that spans over four centuries. Over time, the city has undergone a remarkable transformation—from being a modest trading port to evolving into the nucleus of India’s textile sector. Today, Surat stands tall at the forefront of innovation and production excellence. “Surat remains a prominent textile hub. Despite periodic fluctuations, it has been able to hold a strong position in the global and domestic markets,” said a fabric manufacturer to Fibre2Fashion even as another industry voice added: “Surat stands distinguished by its remarkable diversity of fabric offerings, earning it a unique position in the textile value chain.” Facts strongly back such claims. Today, Surat’s textile production spans a broad spectrum, from basic daily-wear fabrics to premium, high-end specialty textiles. This extensive range has positioned the city as a one-stop sourcing destination for stakeholders at home and abroad, further solidifying its position. With more than 650,000 power looms in operation and an estimated daily fabric output of around 40 million meters as per reports, Surat stands apart due to its robust ecosystem. The city’s strengths lie in its skilled workforce, well-integrated infrastructure, deeply ingrained production culture, and the enterprising spirit that drives the local industry. Adding momentum are Surat’s dedicated textile parks and industrial estates located in areas such as Pandesara, Sachin, and Katargam. These regions host the power loom clusters and advanced processing units equipped with modern infrastructure, including common effluent treatment plants and continuous power supply, providing Surat with a clear operational edge. Also, Surat’s proximity to Hazira Port, coupled with well-developed road and rail networks, facilitates efficient and cost-effective shipments to international markets. Expectedly so, the city currently exports to nearly 60 destinations, including the UK, UAE, US, countries in Latin America, and Central Asia—all of which exhibit strong appetite for Surat’s unique range of offerings. It may be mentioned here Surat’s rise in the textile landscape dates to colonial era when the British East India Company recognised its strategic location and established it as a key trade port. Post-independence, especially after the economic liberalisation of the 1990s, Surat capitalised on its cost-effective manufacturing base and abundant labour—standing at around 4.5 million today as per some estimates—to reaffirm its position as the epicentre of India’s synthetic textile industry. The synthetic fabric segment is diverse and technically advanced. Manufacturers in Surat utilise innovative processing methods to ensure that synthetic textiles exhibit excellent colour retention, wrinkle resistance, and structural durability, even after repeated use. Beyond sheer production volume, Surat is recognised for its high-quality manufacturing capabilities. The city’s textile ecosystem is notably vertically integrated enabling greater quality control and operational efficiency. “There is a promising trend towards vertical integration within the industry, which is very healthy. This shift allows companies to control diverse aspects of their production process, from raw material to final product,” said Sumeet Sharma, director - sales, Sun Textile Engineers, in an earlier conversation with Fibre2Fashion.
He further emphasised how vertical integration can boost profitability.
Such strategic moves signal substantial growth potential for Surat’s textile sector, felt Sumeet even as he added government support remains key to sustaining Surat’s growth trajectory as a textile hub while highlighting the importance of targeted policies and initiatives, which can provide the necessary framework for infrastructure development, technology upgrades, and skill enhancement, essential to maintain competitiveness in domestic and global arenas.
Meanwhile, with technology emerging the key driver of progress, Surat’s textile sector has actively embraced innovation to boost productivity and expand capabilities. The advent of state-of-the-art digital printing has revolutionised fabric design by enabling the creation of photorealistic images and intricate colour gradients. Similarly, advanced jacquard looms have elevated weaving capabilities, allowing for the production of complex textured patterns while latest computerised embroidery systems have enabled execution of intricate designs with exceptional precision. However, the shortage of technically skilled manpower sometimes poses a challenge, affecting the efficient utilisation of technology, felt a renowned Surat-based technology provider, which specialises in Computer to Screen (CTS) and eco-friendly solutions. The entity concerned thus offers training facility to its clients, as per requirement. The industry is also responding fast to the evolving environmental dynamics by implementing wide-ranging sustainability initiatives. “With a strong presence in the global and domestic market, we are committed to expanding our footprint and capabilities…Our growth strategy centres around quality, with the principal aim to solidify our position as a premier provider of yarns and cords with the overarching goal to cater to the evolving needs of our clients, upholding the principles of sustainability and social responsibility,” said Chitrang J Jariwala, founder of Fabcord International, in a previous interaction. Backed strongly by the concerned stakeholders, the industry players are increasingly adopting diverse sustainability practices, including implementation of innovative water-conserving technologies in dyeing, and finishing processes, use of recycled fibres, solar energy, etc.
“Our primary goal is to drive sustainability while also cutting operational costs,” claimed Aditya Desai, chief technology officer at Valiant Entech Limited, in a discussion with Fibre2Fashion earlier. Valiant’s R.E.G.A.L. (Free Radical Enhancement using Gas Assisted Liquid Dispersion) solution utilises a combination of ultrasound and nanobubble mechanisms to deliver efficient outcomes across applications such as textile processing, wastewater treatment, and commercial laundries. Even as Surat continues to evolve in every facet of textile manufacturing, reports of a probable deal with US, further adds to the cautious optimism of the industry players.
A US delegation is expected to visit India soon for the next round of negotiations as both the countries rush to work things out before the tariff deadline, claimed some media reports. “Nearly 28 per cent of India’s total textile exports are directed to the US, and more than 60 per cent of the country’s manmade fibre (MMF) production comes from Surat and surrounding industrial hubs. This will bode well for Surat,” underlined an industry representative to conclude on a positive note but not before adding local businesses are nonetheless aware that global trade partnerships come with shifting dynamics and Surat’s response is not just about capitalising on potential gains, but strengthening its position through innovation and adaptability to prevail in a competitive global environment.
Source: Fibre2fashion
Union Minister of Communications and the Ministry of Development of the North Eastern Region (DoNER), Jyotiraditya M. Scindia, was a part of an important task force meeting on 22nd July 2025, to strengthen the handloom and handicrafts industry in Northeast India. The task force deliberated an integrated approach to revive the handloom and handicrafts sector by enhancing market access, harnessing technology, developing skills and generating sustainable income opportunities. The joint initiative aims to establish the sector as a pillar of inclusive growth and regional development. During the meeting, Scindia presented a vision for the industry with a focus on infrastructure modernisation, digital tools and design innovation and building artisan capacity. Main proposals were the setting up of specialised artisan hubs, development of Common Facility Centres (CFCs) and the identification of signature crafts from each state for branding at the country level. The strategy also recommends gearing up Self-Help Groups to reach global standards and developing the value chain from grass roots to enhance the availability of local craftsmanship, getting a greater market both within India and internationally. Addressing the gathering, Scindia spotlighted the Northeast’s vast potential to become the driving force behind India’s shift to sustainable fashion. Echoing Prime Minister Narendra Modi’s call for ‘Fashion for Environment and Empowerment,’ he emphasised the region’s deep-rooted traditions in eco-conscious craftsmanship, artisanal excellence and sustainable design. Scindia said that Northeast India’s handloom and handicrafts heritage can serve as a launchpad for livelihoods, innovation and global recognition of our cultural richness. The meeting, presided over by Nagaland Chief Minister Neiphiu Rio, saw eminent leaders such as Union Textiles Minister Giriraj Singh, Mizoram Chief Minister Lalduhoma, Assam’s Handloom & Textiles Minister Urkhao Gwra Brahma and senior officials from Manipur and central government members. Giriraj Singh ensured that the Ministry would positively utilise the strategic recommendations placed by Northeastern states with a view to bringing the art, artisans and cultural identity of the region to global heights.
Source: Apparel Resource
US President Donald Trump announced that there will be a baseline tariff starting at 15 per cent and going up to 50 per cent on all imports, during an artificial intelligence summit in Washington on Wednesday (local time). “We’ll have a straight, simple tariff of anywhere between 15 and 50 per cent,” Trump said, adding that countries with which the US has strained diplomatic ties could face duties at the higher end of the range.
Trump administration confirms August 1 deadline
The announcement comes just days before the revised rates are set to take effect on August 1, and marks a shift from Trump’s earlier stance. At the beginning of July, the administration had proposed tariffs between 10 and 15 per cent on imports from over 150 countries. Commerce Secretary Howard Lutnick reiterated the timeline in a CBS News interview on July 20, noting that many smaller economies in Latin America, the Caribbean, and Africa would face lower tariffs closer to 10 per cent.
“The new rates will be effective from August 1,” Lutnick had confirmed. “That’s a hard deadline. Countries can still negotiate after that date, but the tariffs will apply in the meantime.”
White House prioritises tariff-based deals over formal trade pacts
In a significant departure from conventional trade diplomacy, the White House is now treating tariff notifications themselves as de facto deals. A report by Bloomberg suggests that President Trump is moving away from formalised trade agreements and using tariff levels to set the terms of engagement.
Source : Business Standard
The International Monetary Fund (IMF) has called on China to implement stronger policy measures to address its external imbalances, even as the country reported a 2.3 per cent GDP current account surplus in 2024. This surplus marks a significant increase from 2023 and was driven by a surge in exports, which rose by 7.2 per cent due to improved competitiveness and robust external demand. The goods balance saw a substantial improvement, reaching 4.1 per cent of GDP, supported by declining domestic prices and a frontloading of exports ahead of potential tariff hikes. Despite the positive export performance, the IMF highlighted continued vulnerabilities, particularly from sustained capital outflows and the ongoing depreciation of the Chinese yuan (RMB). The real effective exchange rate (REER) depreciated by 2.6 per cent in 2024, marking the third consecutive year of declines and signalling persistent external pressures. However, the nominal effective exchange rate (NEER) appreciated by 0.6 per cent in 2024, indicating some resilience in the currency against a basket of major trading partners' currencies, albeit not sufficient to offset the effects on the real exchange rate. The IMF recommended a strategic reduction in industrial policies and a shift towards a more liberalised and transparent trade policy to foster economic integration and resolve trade tensions. Structural reforms, including relaxing regulatory barriers to encourage investment, are also deemed crucial for the country’s long-term economic stability. The financial account showed deterioration, with net outflows reaching -2.5 per cent of GDP, primarily due to large portfolio outflows and a historic low in foreign direct investment (FDI). The IMF pointed to China’s interest rate differential with advanced economies, trade tensions, and concerns over China’s economic outlook as the driving forces behind these trends. The IMF also advocated for the gradual opening of China’s capital account, encouraging two-way financial flows while carefully managing financial stability. Despite these challenges, China's foreign exchange reserves grew by $6 billion in 2024, reaching $3.5 trillion. While the reserves are deemed adequate, the IMF stressed that China should be ready for temporary foreign exchange interventions if large-scale capital outflows pose risks to financial stability.
Source: Fibre2fashion
Vietnam National Textile and Garment Group (Vinatex) and Vietnam National Industry - Energy Group (Petrovietnam) have formalised a Principal Agreement on polyester staple fibre (PSF) between their subsidiaries—Vietnam Chemical and Fibre Joint Stock Company (VNPOLY) and several Vinatex member units.
The agreement was signed in Hanoi on July 18. Under the agreement, VNPOLY will initially supply PSF to 1–2 selected downstream units of Vinatex for spinning, weaving and dyeing trials. Upon confirmation of consistent quality, supply will be extended to leading spinning firms such as Phú Bài, Hòa Tho, and Phú Hung, targeting premium export markets like the EU and South Korea, domestic media outlets reported.
VNPOLY general director Tran Huy Thu noted that 95 per cent of Vietnam’s annual PSF demand—around 492,000 tonnes—is currently imported. With the country's annual PSF demand expected to reach 550,000 tonnes by 2025, the VNPOLY–Vinatex partnership aims to shift the balance toward domestic sourcing. Vinatex chairman Lê Tien Truong emphasised that PSF is now critical for spinning mills due to a structural shift away from 100 per cent cotton towards synthetic blends like CVC and PE yarns. He also stressed the need for close coordination with VNPOLY to ensure PSF dye quality meets export market standards. Petro Vietnam chairman Lê Manh Hùng highlighted the agreement as a key step in reactivating the Ðình Vu PSF plant and building a self-reliant supply chain for the Vietnamese textile industry. He underlined the strategic alignment of the two state-owned giants, Petro vietnam and Vinatex, in navigating a more protectionist global trade landscape. In a parallel development, VNPOLY and PV Chem signed a long-term cooperation agreement to jointly develop and exchange products and services in recycled plastics, fibre, and petrochemical sectors. Both parties will collaborate across the entire production value chain—leveraging strengths in chemicals, PET chips, and fibre production—to boost Vietnam’s localisation and sustainability goals. The dual agreements underscore a renewed push by Vietnam to reinforce domestic resilience in its textile, fibre and petrochemical value chains, while aligning with global trends in traceability, recycling, and supply chain security.
Source: Tex Adviser
