Latest news with #CottonTextilesExportPromotionCouncil
The Hindu
31-07-2025
- Business
- The Hindu
U.S. tariffs: Garment exporters fear slowdown in orders
Apparel exports from India to the U.S. are expected to slowdown till a bilateral trade agreement (BTA) is signed between the two countries. Sudhir Sekhri, chairman of AEPC, said in a release that the U.S. tariff of 25% is higher than what was expected. The BTA should hopefully be concluded by October-December 2025. 'The penalty is a grey area and we hope the government will negotiate this with the U.S.,' he said. The U.S. held 33% share in India's total garment exports in 2024. India's presence in the U.S. garment import market has grown, with its share increasing from 4.5% in 2020 to 5.8% in 2024, he pointed out. This steep tariff increase puts immense pressure on Indian exporters, many of whom operate on wafer-thin margins. Exporters may be forced to either absorb the additional costs, hurting profitability, or pass them on to U.S. buyers, which can further dampen demand. The impact will be particularly severe on MSMEs and labour-intensive units, said executive director of the Cotton Textiles Export Promotion Council Siddhartha Rajagopal. According to A. Ravikumar, executive director, Manmade Fibre and Technical Textiles Export Promotion Council (MATEXIL), the development had created considerable uncertainty among U.S. buyers, who are currently unclear about the final tariff structure that will be applicable. As a result, many importers have adopted a cautious approach and are holding back on placing new orders.
The Hindu
24-07-2025
- Business
- The Hindu
Indian home textile sector to double its share in the UK market
The Indian home textile sector is likely to see its share in the UK market double because of the India–UK Comprehensive Economic and Trade Agreement (CETA). Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council (Texprocil), said, 'The India–UK FTA marks a momentous milestone following three years of rigorous negotiations. It is poised to provide a major impetus to labour-intensive sectors such as textiles —particularly home textiles— currently facing a 12% tariff in the UK. With duty-free access, India has the potential to double its share in the UK home textiles market within the next three years. Moreover, with 99% of goods now qualifying for duty-free entry, Indian exporters will gain a substantial competitive advantage in the UK market.' On the investment side, the trade agreement is expected to encourage greater bilateral cooperation between Indian and UK companies, facilitating joint ventures, innovation partnerships, and market development initiatives, he said. According to Sudhir Sekhri, chairman, AEPC, 'This deal will usher a new era of garment trade with the UK. It will enhance market access, spur investment and job creation in the garment sector.' 'The India- UK FTA will not only give competitive market access to the Indian apparel products in the UK market, but also increase the trust and reliability factor by streamlining customs procedures and mutual recognition of standards, thereby, reducing the compliance burdens for the Indian apparel exporters,' he added. The UK is a global fashion hub and the fifth largest garment importer of the world, buying $ 19.7 billion worth apparel in 2024. India exported $ 1.2 billion worth of garments emerging as one among top four suppliers to the UK last year. For most of the garment products, the duty to export to the UK is 9.6%. India mainly exports cotton-based garments such as t-shirts, ladies dresses, and babywear but lacks competitiveness in winter wear and MMF garments, the AEPC said. A. Sakthivel, vice-chairman of AEPC, added the agreement is a game-changer for the Indian textiles and apparel industry. The Powerloom Development and Export Promotion Council said a significant portion of synthetic and blended textiles, cotton fabrics, made-ups, and home furnishings will now have duty-free access to the UK market. K. Sakthivel chairman of Pdexcil, said the agreement marks a new era for Indian powerloom manufacturers and exporters. The elimination of tariffs on key textile products will significantly enhance the weaving sector's global competitiveness, allowing MSMEs to scale up exports and tap into premium markets across the UK. There will be zero-duty market access for a wide range of synthetic, blended, and cotton fabrics and improved market entry for value-added textile products such as bedsheets, curtains, and garments.
The Hindu
06-06-2025
- Business
- The Hindu
Textile mills urged to use Kasturi cotton
More number of spinning mills should use Kasturi cotton, said Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council (Texprocil). Mr. Rajagopal told The Hindu on Friday that the government is targeting 10% of Indian cotton production to be tested and certified as Kasturi cotton in five years. It will also support this through the mini mission on cotton. In the 2024-2025 cotton season, 1.12 lakh bales of cotton will be certified as Kasturi cotton. Of this, majority is with the Cotton Corporation of India. The Texprocil is talking to international brands to use Kasturi cotton as it has traceability and quality assurance. Some of the textile manufacturers in India have made shirts and towels using Kasturi cotton. 'It is recognised as a pivot for quality cotton,' he said. The brand commands a premium and there are standards for extra long staple cotton too. Textile mills that have cotton can go for testing and certification if they have details of the ginners and farmers from whom the cotton was sourced. At a meeting organised by the Texprocil for members of the textile associations here, chairman of the Southern India Mills' Association S.K. Sundararaman said the usage by the textile mills will increase when they see demonstration of value for the cotton. Nishant Asher, secretary of the Indian Cotton Federation, said the pull should come from the garment and made up brands. The participants also suggested improvement of best practices by farmers so that the traceability starts from the farmers and reduction in short fibres in the cotton to be certified as Kasturi.
The Hindu
28-04-2025
- Business
- The Hindu
Textile industry explores solutions for yarn exports to Bangladesh
With Bangladesh closing its land ports for yarn exported by India, textile mills in India are looking at alternative modes of transport and have also urged the government to take up the issue with Bangladesh. Almost 30% of India's yarn, mainly dyed and special yarn, exported to Bangladesh was transported via land ports. At a recent meeting, the yarn exporters explored various alternative options such as shipping in containers, using inland water ways, etc. They also had meetings with buyers in Bangladesh. 'The problem in sending the goods in containers by sea is the lead time. Even now, 70% of the Indian yarn to Bangladesh goes by sea. Those who exported through land ports will also use the sea now. There are smaller ships that go from Kolkata. The possibility of sending in those ships needs to be explored,' said Siddhartha Rajagopal, executive director of the Cotton Textiles Export Promotion Council. According to K. Selvaraju, secretary general of the Southern India Mills' Association, almost 45% of India's yarn exports are to Bangladesh. China and Bangladesh were the main markets for Indian yarn. In recent years, China's imports of Indian yarn have reduced substantially. If exports to Bangladesh are affected, the domestic textile value chain will be impacted. Currently, textile mills in the northern States are affected because of the closure of the land ports. However, if the situation does not improve, the entire textile spinning sector will be affected, he said.
