The Business Factors News Desk

Mumbai, 21 May 2025: Credit rating agency ICRA expects India's textile export volumes to the UK to double in the next five to six years post implementation of the revised tariffs, leading to an addition of incremental capacities in four to five years.
While the United Kingdom’s share in apparel and home textile exports by India had remained stable at about 8% over the past five years amidst flattish growth, the same is expected to reach about 12% by 2027, reflecting a 11% compounded annual growth rate (CAGR) between 2024 and 2027.

“India and the UK recently concluded trade talks, and a free trade agreement (FTA) was reached on May 6, 2025, after three years of negotiation. While the broad terms have been agreed upon, the FTA is expected to be operational in 2026, subject to legal review,” leading textile news portal www.fibre2fashion.com said in a report.

Currently, the UK levies an 8-12% duty on apparel and home textiles imported from India. In the FTA, tariffs have been eliminated on 99% of Indian goods, including textiles.

The conclusion of the FTA is expected to encourage capital investments in the apparel and home textile sector, apart from generating employment opportunities and better earnings for the exporters with a changing product mix, ICRA noted.
In 2024, China was the biggest apparel and home textiles exporter to the United Kingdom, with nearly 25 per cent share, followed by Bangladesh (22 per cent), Turkey (8 per cent) and Pakistan (6.8 per cent).

Once the FTA gets implemented, with zero-duty access on apparel and home textiles exported, India would have a level playing field compared to the existing duty-free access nation status like Bangladesh, Vietnam and Pakistan, ICRA said in a research report.

In 2024 and the first two months of 2025, India’s apparel and home textiles exports to the United Kingdom witnessed 6 per cent and 7 per cent year-on-year (YoY) growth, respectively.

To meet the additional demand, the Indian textile industry is also expected to invest in incremental capacities in the garmenting segment. On the other part of the value chain, namely spinning, fabric processing, etc., the spend is likely to be relatively lower given the inherent over-capacity situation in the country, ICRA noted.

Indian apparel exporters’ competitive positioning would strengthen considerably with the elimination of import duties by the United Kingdom. Exports from existing manufacturing hubs like Tiruppur, Surat, Delhi National Capital Region are likely to improve.

The UK retail giants are likely to expand their sourcing from India for cost-effective production and diverse product offerings facilitated through the FTA. This shift will benefit Indian suppliers, boosting their revenues and enhancing their reputation in the global apparel industry, ICRA added.

ICRA is short for Investment Information and Credit Rating Agency of India Limited, a publicly traded company in India that provides investment information and credit ratings. ICRA was founded in 1991 by leading financial institutions and is a professional credit rating agency. They assess the creditworthiness of companies and financial instruments, providing ratings to help investors make informed decisions. ICRA's ratings are used by various market participants to assess the risk associated with investments. 

The Business Factors News Desk

New Delhi, May 20, 2025: The Apparel Export Promotion Council (AEPC) has entered into an agreement with the Green Business Certification Institute (GBCI) to promote sustainable manufacturing practices within the Indian garment industry.
The collaboration is aimed at increasing the number of garment factories in India that achieve LEED (Leadership in Energy and Environmental Design) certification. LEED is an internationally recognised rating system that evaluates a building’s environmental performance, focusing on energy efficiency, resource conservation, and the promotion of healthier indoor environments.

“The Memorandum of Understanding was signed by AEPC Secretary General Mithileshwar Thakur and Gopalakrishnan P, Managing Director of GBCI for the Asia Pacific and Middle East regions,” www.indiantextilejournal.com reported quoting a report published in the Business Standard.

Sudhir Sekhri, Chairman of AEPC, reiterated the garment sector’s commitment to sustainability. He highlighted that LEED certification signifies reduced resource consumption, a lower carbon footprint, and better air quality within factories. He further noted that such certification also brings down operational costs, enhances property value, and boosts investor confidence. Sekhri expressed confidence that an increasing number of garment factories in India would pursue LEED certification in the near future.

Meanwhile, Thakur observed that India currently has only 13 garment factories with LEED certification, compared to approximately 250 in Bangladesh. He emphasised the growing global focus on sustainability among reputed brands and stressed the urgency for Indian manufacturers to adopt such practices in order to remain competitive in the international market.

The Business Factors News Desk

Surat, April 30, 2025: The Ministry of Heavy Industries has shocked Surat, India’s biggest hub for manmade fabric (MMF) by conspicuously excluding Surat from a high-level meeting organised on April 29, 2025) in New Delhi. The meeting was convened to streamline the implementation of the newly proposed Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024.

“Every year, the textile industry of Surat witnesses new machinery installations of Rs8,000cr ($934.65m) out of the total Rs20,000cr ($2.33bn) worth of new textile machinery installed nationwide,” a leading textile businessman tells this report. “But still, none of the leading textile bodies of Surat were invited for the meet.” Not invited to this key meeting were representatives from the Southern Gujarat Chamber of Commerce and Industry (SGCCI), the oldest chamber of Gujarat, nor the Federation of Indian Art Silk Weaving Industry (FIASWI), nor the Federation of Gujarat Weavers Welfare Association (FOGWA).

“Surat is home to the manmade textile industry and has the lion’s share,” our industry source tells us. “Presence of Surat in such critical meetings is mandatory.”

Sources confirmed that the meeting saw participation from national-level associations such as FICCI, CII, BIS, TMMA, and several sector-specific machinery bodies. The gathering aimed to form a Technical Committee to oversee the rollout and enforcement of the OTR 2024, which will directly impact machinery and equipment safety standards across sectors, including textiles.

A report in The Blunt Times said former SGCCI president and present head of the Pandesara Weaving Society, Ashish Gujarat,i voiced strong disapproval: “It is outrageous that Surat — the largest consumer of textile machinery in the country — was left out of such a significant policy discussion. This is a blatant oversight and an insult to the entire Surat textile ecosystem.”
Gujarati added that earlier government assurances indicated that end-user input would be a cornerstone of all technical and safety regulation processes. However, the exclusion of Surat from the discussion contradicts that commitment and risks formulating policies detached from ground realities.

What are the fallouts of the absence of Surat from the important meeting? Well, textile stakeholders in Surat now fear that the absence of local representation may result in impractical or commercially harmful regulatory frameworks.” The SGCCI and other associations are reportedly preparing to formally protest this omission with the central government,” The Blunt Times report said.

Industry veterans say this isn’t the first time Surat has had to play catch-up with Delhi after being left out of policy dialogues, despite its critical role in India’s textile value chain. “We contribute massively to the national textile economy, yet we have to knock on doors post-facto to make our voices heard. This cycle must stop,” said a senior member of FOGWA.

While the Technical Committee begins its work on finalising the implementation framework for the OTR 2024 Order, Surat’s absence has triggered a fresh debate on the Centre’s consultative processes. “The textile powerhouse is demanding an urgent seat at the table — not just to protect its interests, but to ensure that national policies reflect the realities of India’s most active and advanced textile cluster” FOGWA president Ashok Jirawala said. 

Source: The Blunt Times 

The Business Factors News Desk 

May 19, 2025: India’s decision to restrict imports of ready-made garments from Bangladesh through land ports is expected to create an additional ₹1,000-2,000 crore business opportunity for the domestic textile industry, industry experts said.
However, the move may cause short-term disruptions in the supply of certain branded garments, with potential price hikes of 2-3% for items such as T-shirts and denims in the winter season.

What has the Indian government announced?

In a late-night notification issued Saturday, the government said import of ready-made garments from Bangladesh will now be permitted only through Kolkata and Nhava Sheva sea ports, effectively barring such imports via the 11 existing land transit points in the Northeast.

The restrictions, however, exempt essential items such as fish, LPG, edible oil, and crushed stone, and do not apply to Bangladesh’s exports to Nepal and Bhutan transiting through India.

The curbs came over a month after India ended a nearly five-year arrangement that allowed trans-shipment of Bangladeshi export cargo to third countries through Indian airports and seaports.

How will this impact the domestic textile industry?

The new restrictions, effective immediately, mark a major shift in bilateral trade dynamics between the two countries.

The move is expected to benefit domestic manufacturers, especially MSMEs, which have struggled to compete with duty-free, subsidised apparel from Bangladesh, according to experts.

“We were importing garments worth ₹6,000 crore annually from Bangladesh. We can now expect imports worth ₹1,000-2,000 crore to be replaced with Indian manufacturing,” The Economic Times quoted Sanjay K Jain, chairman of the National Textile Committee at the Indian Chamber of Commerce, as saying.

What prompted India to take this step?

Industry voices see the decision as a countermeasure to Bangladesh’s port restrictions on Indian exports from the Northeast.
New Delhi had raised concerns with Dhaka over limited access to Bangladeshi land ports, but did not receive a favourable response, reported PTI, citing officials familiar with the matter.

How important is Bangladesh in the global garment trade?

Bangladesh is one of the world’s largest exporters of ready-made garments, with exports valued at USD 38 billion in 2023.
Of its USD 700 million RMG exports to India, 93% were routed via land ports.

In FY2024-25, Bangladesh exported apparel worth USD 677.5 million to India, a 13.8% rise over the previous year. The Petrapole land port alone accounted for USD 515.3 million, or 76% of the total.

“The decision is a timely step towards preventing the dumping of foreign-made garments and strengthening India's self-reliance in apparel production,” said Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI).
“At the same time, we believe this policy must be complemented with continued support for capacity building and ease of doing business for Indian manufacturers," he added.

While the move has been welcomed by Indian exporters, it poses logistical and cost challenges for Bangladeshi garment manufacturers, especially small and medium-sized units that rely on land routes for quicker and cheaper deliveries.
"Forcing garments to be shipped via sea ports will increase transportation costs and potentially make Bangladeshi garments less competitive in the Indian market," Thakur said, adding sea transportation is slower than land transportation, leading to longer delivery times.

The Global Trade Research Initiative (GTRI) noted that Bangladeshi exporters enjoy a 10-15% price advantage due to duty-free Chinese fabric imports and export subsidies, a point of contention for Indian manufacturers.

AEPC Vice Chairman A Sakthivel hailed the government’s decision, calling it a timely and necessary intervention to level the playing field for Indian exporters.

“The domestic industry will benefit from this," Sakthivel said.

Courtesy: upstox.com

The Business Factors News Desk

Mumbai, May 02, 2025 India’s major textile-producing states, Gujarat and Maharashtra, are experiencing a severe workforce shortage that is interfering with the region’s ability to produce fabrics and clothing.

The industries that require a lot of labour have been especially affected by the workforce reduction. The output of textile factories in Surat, Gujarat’s famous textile hub, has decreased by as much as 50 per cent. Nevertheless, despite a slower supply of textiles, limited retail demand might stop price increases.

Surat is well known for its manual labour-intensive weaving, processing, and clothing industries. The majority of the personnel are from Bihar and Uttar Pradesh, and they usually spend one to two months in their home villages in the summer. 
Since their pay is output-based rather than permanent, these workers’ absences have a financial impact on them but are out of the factory owners’ control. Many depart to work in agriculture or help with harvesting, where they frequently receive greater seasonal pay.

According to Ashish Gujarati, the former president of the Southern Gujarat Chamber of Commerce & Industry (SGCCI), factories are forced to cut production by as much as 50 per cent due to a workforce shortage in the textile sector.

Approximately 50 per cent of the staff are thought to have taken time off to return to their home states. After the first rains, which should happen in the second half of June, workers are expected to return. He went on to say that the most acute labour shortages are occurring in the auto and power looms. Clothing and textile processing are also impacted. Similar manpower shortages are affecting industries other than textiles.

Production at textile factories has been hampered by a lack of labour, but it is doubtful that supply will abruptly decline or fabric prices will rise. Unless there is an unanticipated spike in demand for completed items like clothing, there are unmistakable indications of steady supply and stable prices. Additionally, wholesalers have accumulated enough inventory for the summer. More significantly, there is currently little to no demand for clothing and textiles, which makes price increases unfavourable.

Source: Apparel Resources

Image Courtesy: textileschool.com

The Business Factors News Desk 

Chennai, May 21, 2025: Tamil Nadu textile mills are hoping for a gradual market recovery and improved performance this fiscal year after nearly two years of declining demand and growing production costs.

According to Indian Texpreneurs Federation convenor Prabhu Dhamodharan, the spinning business experienced a very difficult period in the fiscal year 2023–2024 as a result of low yarn demand and high inventory levels throughout the value chain. Over the past nine months, yarn demand has steadily improved due to value chain inventory exhaustion and a 10 per cent decrease in installed spindles throughout India, which has somewhat restored supply-demand equilibrium.

There were no stocks, and the textile mills were able to sell their monthly output. According to him, some mills were currently using 70 per cent to 80 per cent of their capacity, while the larger mills were currently running at 95 per cent.

However, the price differential between domestic and foreign cotton as well as growing conversion costs, continues to put pressure on profits. According to him, there is still hope that steady demand will eventually result in an improvement in margins from this fiscal year.

In order to increase efficiency over the medium term, textile mills with financial means were also investing in automation and modernisation. According to him, the mills would be able to invest in modernisation if demand continued to rise.

About 19 million of Tamil Nadu’s 24 million spindles were in use, according to S.K. Sundararaman, chairman of the Southern India Mills’ Association. One-third of these were doing well since they used only renewable energy sources. For long-term survival, an additional six million spindles should boost manufacturing efficiency and competitiveness. He recommended that they consider pursuing value-added or synthetic yarns.

Due to free trade agreements, the textile industry has a lot of chances. To obtain sustainable, additional industry sources, the mills should concentrate on a number of areas, including fibres, modernisation, and value-added yarns.

Source: Apparel Resources 

The Business Factors News Desk 

Hyderabad, April 11, 2025: In order to attract investments in textile production and apparel manufacturing, the Government has released operational guidelines for the implementation of the A.P. Textile, Apparel and Garments Policy (4.0) 2024-29. These guidelines place a particular emphasis on value addition, employment creation, and environmental protection for the state of Andhra Pradesh.

According to G.O. Ms. No. 55, between 2014 and 2024, more than 848 units began production with a total investment of over Rs. 13,617 crore (US $ 1.58 billion), creating jobs for 1,05,225 people. However, since then, there has been little advancement in value-added textile activities like weaving, knitting, technical textiles, processing, and integrated units.

These markets have a lot of potential for creating jobs on a broad scale in addition to adding value. To guarantee the conversion of all yarn produced in the state into fabrics and stop value migration, it was believed that a targeted strategy was required, necessitating a set of policies that support important elements of the textile value chain. In light of this, the Government developed the aforementioned policy. It will remain in effect until 10th December 2029.

According to the policy, a micro enterprise is a business that invests less than Rs. 1 crore (US $ 116,000) in plant and machinery (P&M) or equipment and has a turnover of less than Rs. 5 crore (US $ 581,000); a small enterprise is a business that invests less than Rs. 10 crore (1.16 million) in P&M or equipment and has a turnover of less than Rs. 50 crore (US $ 5.81 million); and a medium enterprise is a business that invests less than Rs. 50 crore (US $ 5.81 million) in P&M or equipment and has a turnover of less than Rs. 250 crore (US $ 29.06 million).

Units with fixed capital investments (land, buildings, plant, machinery, and equipment) between Rs. 50 crore (US $ 5.81 million) and Rs. 100 crore (US $ 11.62 million) and Rs. 100 crore (US $ 11.62 million) to Rs. 200 crore (US $ 23.25 million) are classified as sub-large and major industries. According to the policy, an organisation that has invested more than Rs. 200 crore (US $ 23.25 million) in fixed capital is considered a mega industry.

For mega and above projects, the Government has established a process for claiming custom incentives. One of the incentives is an “early bird offer” for sub-large and above businesses. The State Investment Promotion Board will make decisions under the policy based on suggestions from the State Investment Promotion Committee.

Source: Apparel Resources 

People live better in big houses and in big clothes. I try to contrast; life today is full of contrast. We have to change! I am not interested in the past, except as the road to the future. Give me time and I’ll give you a revolution. I think the idea of mixing luxury and mass-market fashion is very modern. I want people to be afraid of the women I dress.

Mass-market fashion is very modern

I think the idea of mixing luxury and, very now no one wears head-to-toe designer anymore. There has to be a balance between your mental satisfaction and the financial needs of your company. A girl should be two things: classy and fabulous.

Luxury will be always around, no matter what happens in the world. There is always the new project, the new opportunity. Attention to detail is of utmost importance when you want to look good. I have a fantastic relationship with money. I use it to buy my freedom.

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore.

Confidence. If you have it, you can make anything look good. Abstinence from coffee, tobacco. Adventists has afforded a near-unique opportunity.

Clothes can transform your mood and confidence

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I want people to be afraid of the women I dress. Elegance isn’t solely defined by what you wear. Clothes can transform your mood and confidence.

Fashion moves so quickly that, unless you have a strong point of view, you can lose integrity. I like to be real. I don’t like things to be staged or fussy. I think I’d go mad if I didn’t have a place to escape to. You have to stay true to your heritage, that’s what your brand is about.

People live better in big houses and in big clothes. I try to contrast; life today is full of contrast. We have to change! I am not interested in the past, except as the road to the future. Give me time and I’ll give you a revolution. I think the idea of mixing luxury and mass-market fashion is very modern. I want people to be afraid of the women I dress.

Mass-market fashion is very modern

I think the idea of mixing luxury and, very now no one wears head-to-toe designer anymore. There has to be a balance between your mental satisfaction and the financial needs of your company. A girl should be two things: classy and fabulous.

I never look at other people’s work. I can’t get sucked into that celebrity thing, because I think it’s just crass. Give me time and I’ll give you a revolution. I can’t get sucked into that celebrity thing, because I think it’s just crass.

I can design a collection in a day and I always do, cause I’ve always got a load of Italians on my back, moaning that it’s late. Sometimes the simplest things are the most profound.

Luxury will be always around, no matter what happens in the world. There is always the new project, the new opportunity. Attention to detail is of utmost importance when you want to look good. I have a fantastic relationship with money. I use it to buy my freedom.

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore.

Confidence. If you have it, you can make anything look good. Abstinence from coffee, tobacco. Adventists has afforded a near-unique opportunity.

Clothes can transform your mood and confidence

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I want people to be afraid of the women I dress. Elegance isn’t solely defined by what you wear. Clothes can transform your mood and confidence.

Fashion moves so quickly that, unless you have a strong point of view, you can lose integrity. I like to be real. I don’t like things to be staged or fussy. I think I’d go mad if I didn’t have a place to escape to. You have to stay true to your heritage, that’s what your brand is about.

People live better in big houses and in big clothes. I try to contrast; life today is full of contrast. We have to change! I am not interested in the past, except as the road to the future. Give me time and I’ll give you a revolution. I think the idea of mixing luxury and mass-market fashion is very modern. I want people to be afraid of the women I dress.

Mass-market fashion is very modern

I think the idea of mixing luxury and, very now no one wears head-to-toe designer anymore. There has to be a balance between your mental satisfaction and the financial needs of your company. A girl should be two things: classy and fabulous.

I never look at other people’s work. I can’t get sucked into that celebrity thing, because I think it’s just crass. Give me time and I’ll give you a revolution. I can’t get sucked into that celebrity thing, because I think it’s just crass.

I can design a collection in a day and I always do, cause I’ve always got a load of Italians on my back, moaning that it’s late. Sometimes the simplest things are the most profound.

Luxury will be always around, no matter what happens in the world. There is always the new project, the new opportunity. Attention to detail is of utmost importance when you want to look good. I have a fantastic relationship with money. I use it to buy my freedom.

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore.

Confidence. If you have it, you can make anything look good. Abstinence from coffee, tobacco. Adventists has afforded a near-unique opportunity.

Clothes can transform your mood and confidence

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I want people to be afraid of the women I dress. Elegance isn’t solely defined by what you wear. Clothes can transform your mood and confidence.

Fashion moves so quickly that, unless you have a strong point of view, you can lose integrity. I like to be real. I don’t like things to be staged or fussy. I think I’d go mad if I didn’t have a place to escape to. You have to stay true to your heritage, that’s what your brand is about.

People live better in big houses and in big clothes. I try to contrast; life today is full of contrast. We have to change! I am not interested in the past, except as the road to the future. Give me time and I’ll give you a revolution. I think the idea of mixing luxury and mass-market fashion is very modern. I want people to be afraid of the women I dress.

Mass-market fashion is very modern

I think the idea of mixing luxury and, very now no one wears head-to-toe designer anymore. There has to be a balance between your mental satisfaction and the financial needs of your company. A girl should be two things: classy and fabulous.

I never look at other people’s work. I can’t get sucked into that celebrity thing, because I think it’s just crass. Give me time and I’ll give you a revolution. I can’t get sucked into that celebrity thing, because I think it’s just crass.

I can design a collection in a day and I always do, cause I’ve always got a load of Italians on my back, moaning that it’s late. Sometimes the simplest things are the most profound.

Luxury will be always around, no matter what happens in the world. There is always the new project, the new opportunity. Attention to detail is of utmost importance when you want to look good. I have a fantastic relationship with money. I use it to buy my freedom.

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore.

Confidence. If you have it, you can make anything look good. Abstinence from coffee, tobacco. Adventists has afforded a near-unique opportunity.

Clothes can transform your mood and confidence

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I want people to be afraid of the women I dress. Elegance isn’t solely defined by what you wear. Clothes can transform your mood and confidence.

Fashion moves so quickly that, unless you have a strong point of view, you can lose integrity. I like to be real. I don’t like things to be staged or fussy. I think I’d go mad if I didn’t have a place to escape to. You have to stay true to your heritage, that’s what your brand is about.

People live better in big houses and in big clothes. I try to contrast; life today is full of contrast. We have to change! I am not interested in the past, except as the road to the future. Give me time and I’ll give you a revolution. I think the idea of mixing luxury and mass-market fashion is very modern. I want people to be afraid of the women I dress.

Mass-market fashion is very modern

I think the idea of mixing luxury and, very now no one wears head-to-toe designer anymore. There has to be a balance between your mental satisfaction and the financial needs of your company. A girl should be two things: classy and fabulous.

I never look at other people’s work. I can’t get sucked into that celebrity thing, because I think it’s just crass. Give me time and I’ll give you a revolution. I can’t get sucked into that celebrity thing, because I think it’s just crass.

I can design a collection in a day and I always do, cause I’ve always got a load of Italians on my back, moaning that it’s late. Sometimes the simplest things are the most profound.

Luxury will be always around, no matter what happens in the world. There is always the new project, the new opportunity. Attention to detail is of utmost importance when you want to look good. I have a fantastic relationship with money. I use it to buy my freedom.

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore.

Confidence. If you have it, you can make anything look good. Abstinence from coffee, tobacco. Adventists has afforded a near-unique opportunity.

Clothes can transform your mood and confidence

I think the idea of mixing luxury and mass-market fashion is very modern, very now no one wears head-to-toe designer anymore. I want people to be afraid of the women I dress. Elegance isn’t solely defined by what you wear. Clothes can transform your mood and confidence.

Fashion moves so quickly that, unless you have a strong point of view, you can lose integrity. I like to be real. I don’t like things to be staged or fussy. I think I’d go mad if I didn’t have a place to escape to. You have to stay true to your heritage, that’s what your brand is about.