Donald Trump suggests India may face tariff rates of 20% to 25%. This comes as the US and India negotiate a trade deal before an August 1 deadline. Trump states “India has been a good friend, but India has charged basically more tariffs than almost any other country,” Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. “You just can’t do that.” The US seeks greater market access for American exports. New Delhi anticipates these higher tariffs. Discussions are ongoing to assess India's willingness to open its market.
Source: The Economic Times
India is bracing for potential U.S. tariffs, possibly between 20% and 25%, as a temporary measure while awaiting a U.S. delegation in mid-August for trade negotiations. New Delhi aims to finalize a comprehensive bilateral agreement by September or October. Despite progress, agriculture and dairy remain sticking points, with India hesitant to open these sectors.
Source: The Economic Times
India may reconsider the Goods and Services Tax (GST) structure across the entire textile value chain. The current differential tax rates on various textile products are not only creating an inverted duty structure—where raw materials are taxed higher than downstream products—but are also making it difficult for industry players to claim input tax credit (ITC). The GST Council may bring forward a proposal to introduce a uniform tax rate of 12 per cent on all products in the textile value chain. This aims to simplify the tax structure, increase industry competitiveness, and attract investment. However, such a proposal could raise taxes and prices on cotton, potentially reducing its appeal in comparison to synthetic fibres, which are currently taxed at higher rate Government sources have indicated that the proposal may be considered by the GST Council before September as part of the next phase of GST reforms. It is likely to feature in the rate rationalisation report by the Group of Ministers (GoM). The proposal aims to correct the long-standing inverted duty structure in the sector.
Source: Money Control
Arvind, a textile manufacturer, experienced a 35% profit increase in the first quarter, driven by global brands shifting sourcing from China to India. Revenue from operations grew by 10%, with the core textiles business leading the way. Textile manufacturer Arvind reported a 35 per cent rise in first-quarter profit on Tuesday as global brands move to increase their sourcing from India instead of China. U.S. brands have been diversifying their supply chains beyond China, due in part to geopolitical tensions, while political turmoil in Bangladesh has also prompted global brands to be open to sourcing more from India.
Arvind reported a 10 per cent growth in revenue from operations to 20.06 billion rupees, driven by a 14 per cent increase in revenue from its core textiles business, which accounts for roughly two-thirds of its total sales.
Source: Economic Times Manufacturing
The Karnataka Government has been urged by the South India Garments Association (SIGA) to take action in order to create a Special Economic Zone (SEZ) that is only open to small and medium-sized textile companies operating in the state. The State Government has created textile parks to serve the needs of large textile companies, but as of right now, there are neither textile parks nor Special Economic Zones for the benefit of small and medium-sized textile companies that bring in money for the state Government and support people by creating jobs, according to Anurag Singhla, president of the South India Garments Association (SIGA). Additionally, he urged the state Government to develop accommodating regulations for textile businesses that are small and medium-sized.
Source: Apparel Resource
The newly announced US-European Union (EU) trade agreement, hailed as “historic” by the White House, is already under scrutiny, not because of what it includes, but because of how differently both sides are likely to interpret it. It also raises concerns for India, which is currently negotiating a similar trade deal with the Donald Trump-led US administration. The Trump administration's sweeping claims, from $750 billion in energy purchases to EU procurement of American defence equipment, are being met with diplomatic silence in Brussels. The mixed messaging is fueling unease in Indian trade and diplomatic circles, where negotiators fear falling into similar traps of post-deal narrative asymmetry.
Source: Business Standard
Indian negotiators are trying to ensure future trade agreements, such as those with the U.S. and the EU, include similar carved-out features to benefit Indian micro, small, and medium enterprises (MSMEs) along the lines of what was included in the recently signed agreement with the U.K., according to Commerce Ministry officials.
“The primary goal is to enhance cooperation and information sharing to improve the ability of MSMEs to participate in bilateral trade and investment,” an official in the Ministry of Commerce and Industry told The Hindu on the condition of anonymity as negotiations for a trade deal with the U.S. and the EU are still ongoing.
Source: The Hindu
The rupee depreciated 12 paise to close at 86.82 (provisional) against the U.S. dollar on Tuesday (July 29, 2025), weighed down by a jump in the U.S. dollar index and a surge in crude oil prices.
Source: The Hind
Bangladesh’s large manufacturing sector saw a healthy year-on-year (YoY) growth of 7.8 per cent in May this year, indicating signs of recovery and momentum across most industrial segments, according to the Bangladesh Bureau of Statistics (BBS).
The rebound follows a modest 4-per cent growth in April and a contraction of 1.13 per cent in August last year. Textiles and garments, together accounting for over 72 per cent of the manufacturing index weight, are the key drivers of performance, making the broader index highly sensitive to changes in these sectors. In May, the garment segment rose by nearly 12 per cent, lifting overall growth, even as the textile industry, the second-highest weighted component, shrank by 9.48 per cent.
Out of the 23 divisions within the large industrial sector, only six manufacturing divisions experienced contraction during May 2025, while 17 expanded, according to a report in a domestic media outlet. Among the sectors that posted negative growth, the coke and refined petroleum declined by 5.68 per cent in the month, while chemical and chemical products fell by 5.3 per cent. Leather and related good also saw a contraction, shrinking by 4.47 per cent in May.
Source: Fibre2fashion
Türkiye’s external position in 2024 remained moderately weaker than levels warranted by medium-term fundamentals, despite significant gains in the current account and an uptick in reserve buffers, according to the IMF External Sector Report. The current account deficit narrowed sharply to just 0.8 per cent of GDP—down from 3.5 per cent in 2023. However, the IMF noted that external vulnerabilities persist, particularly after the March 2025 reserve loss episode and ongoing policy shortfalls.
Gross international reserves rose to $155 billion in 2024, but remain critically below the IMF’s adequacy threshold, with core reserves still at risk of dipping into negative territory. The net international investment position (NIIP) improved to –22.3 per cent of GDP, aided by valuation effects and reduced short-term liabilities. Nevertheless, external debt remains high at 39 per cent of GDP, nearly 44 per cent of which is short-term. The IMF urged Turkiye to tighten monetary and fiscal policies, phase out credit distortions, and allow for more credible macroeconomic adjustments to ensure durable external sustainability. Notably, Turkiye’s real exchange rate appreciated sharply in 2024, and the lira is assessed to be overvalued by around 5.2 per cent.
Source: Fibre2fashion
Top officials from the US and China have ended two days of what both sides described as "constructive" talks by agreeing to continue working to extend their 90-day tariff truce.
China's trade negotiator Li Chenggang said Beijing and Washington had agreed to push to preserve the truce, under which both sides temporarily suspended some measures against each other. But US Treasury Secretary Scott Bessent said any extension would be up to President Donald Trump. The negotiations, held in Stockholm, Sweden came as a truce established in May is set to expire next month, threatening to revive the turmoil that hit in April when the two countries exchanged escalating tit-for-tat tariffs.
Source: BBC News
The International Monetary Fund (IMF) has predicted stronger global economic growth than it forecast in April in part due to some US tariffs on goods being softened. A surge in US imports as firms tried to beat impending higher import taxes and actions by some governments to boost growth bumped up its latest forecast. However, higher tariffs and more uncertainty could lead to weaker growth and slower economic activity, the IMF warned.
Meanwhile, UK growth is predicted to be 1.2% this year, and 1.4% in 2026, unchanged from revised forecasts set out in May.
Source: BBC News
Leaders from Europe's two largest economies have led a chorus of gloomy reactions to the trade deal struck between EU chief Ursula von der Leyen and US President Donald Trump. German Chancellor Friedrich Merz said the agreement would "substantially damage" his nation's finances, while French Prime Minister Francois Bayrou said it was tantamount to "submission". The reaction has been downbeat across the bloc - though several capitals acknowledged signing an uneven deal was worth it in order to avert an all-out trade war. It will see a 15% tariff on most EU exports to the US - half the rate threatened by Trump - in return for Europe buying more American energy and slashing taxes on some imports.
Source: BBC News
