As per a OTEXA report, apparel and textile imports to the US saw a 4.5per cent decline, equivalent to 8.4 billion sq. mt. (SME), in September this year compared to 8.8 billion SME during the same period the previous year. Over the first nine months of 2023, imports recorded a significant 16.5per cent decrease, amounting to 71.0 billion SME compared to 85.0 billion SME in the corresponding period of the previous year.

Specifically, imports from China saw a 9.5per cent increase, reaching 3.3 billion SME, compared to 3.1 billion SME the previous year. In contrast, imports from Vietnam declined by 12.4per cent, equivalent to 5.41 million SME in September, compared to 6.2 million SME the previous year. Imports from Turkey increased 9.7   per cent, totaling 4.8 million SME, compared to 4.4 SME the previous year. Israel experienced a remarkable surge, with imports rising by 914per cent to 4.95 million SME in September, compared to 0.5 million SME the previous year.

However, Egypt's exports to the US saw a substantial decline of 84per cent, amounting to 1.1 million SME, compared to 6.7 million SME the previous year. Imports from Malaysia surged by 76.3per cent in September compared to the same period last year, with the country shipping 6.1 million SME, up from 3.5 million SME the previous year. Meanwhile, imports from Pakistan increased by 1.1per cent, totaling 2.7 million SME, compared to just under 2.7 million SME the previous year. Shipments from India experienced an 11per cent decline, reaching 7.1 million SME in September, compared to 8.0 million SME the previous year.

On October 11, the Environmental Protection Agency (EPA) issued a new rule concerning per- and polyfluoroalkyl substances (PFAS), titled 'Toxic Substances Control Act Reporting and Recordkeeping Requirements for Perfluoroalkyl and Polyfluoroalkyl Substances.' This rule mandates that any entity engaged in commercial PFAS manufacturing since January 2011 must report details such as uses, production volumes, byproducts, disposals, exposures, and existing information on environmental or health effects to the agency.

The scope of the new PFAS reporting rule extends to importers of articles containing covered PFAS chemicals into the US, as well as byproducts containing PFAS and impurities generated during the manufacturing process. It's worth noting that the rule does not establish any threshold for the quantity of PFAS manufactured. According to the Natural Resources Defense Council, PFAS are widely used in clothing, shoes, accessories, cosmetics (including nail polish and eye makeup), and various other consumer products.

Retailers are now required to report comprehensive information, encompassing items ranging from raincoats and yoga pants to cosmetics, depending on the location of the direct supplier, as stated by Meegan Brooks from Benesch. However, individuals such as distributors, users, or those involved in the disposal of PFAS-containing articles, or who receive such articles from domestic suppliers, are excluded from this rule.

Mega textile show ‘Bharat Tex 2024’ is set to showcase entire textile value chain in Delhi’s Bharat Mandapam and Yashobhoomi from February 26-29, 2024. A core committee has been formed to coordinate the organization of Bharat Tex 2024. The event is being organized by Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), with active collaboration from other textiles Export Promotion Councils such as TEXPROCIL, PDEXCIL, and HEPC. 

A roadshow was held on November 16 at Hotel Le Meridien, Coimbatore, that attracted over 250 attendees, including senior officials from the Tamil Nadu government, to promote the upcoming textile show. Bharat Tex 2024, organized collectively by various Textiles Export Promotion Councils with the support of the Ministry of Textiles, is expected to cover an extensive area of about 2,00,000 sq. mt. and feature the entire textile value chain, showcasing fiber, fabrics, garments, made-ups, and technical textiles.

Expected to draw over 3,500 exhibitors, 3,000 foreign buyers, and 40,000 trade visitors, Bharat Tex 2024 will also host more than 50 knowledge sessions.

Organised from November 19-23, 2023, the eighth edition of ITMA ASIA + CITME exhibition in Shanghai attracted 1,500 exhibitors from 23 countries and regions. 

Spread over 160,000 sq. mt. at the sprawling National Exhibition and Convention Centre in Shanghai, the six halls at the venue had 18 product sectors of the textile manufacturing value chain being showcased. 

Exhibitors from China dominated this year’s edition followed by exhibitors from Germany and Japan. Some of reputed companies participants  included: CHTC Group, Groz-Beckert, Itema, Muratec, Oerlikon, Picanol, Rieter, Saurer, Savio, Shima Seiki, Stäubli, Texpro, Truetzschler, Uster and Vandewiele. 

Around 23 per cent of the exhibition space was occupied by spinning and man-made fiber production machines, followed by dyeing and finishing machinery which occupies 21 per cent space, knitting occupying 16 per cent space and weaving occupying 14 per cent space. 

The organising committee collaborated with over 100 supporting media partners for the event. It conducted numerous, overseas roadshows in Indonesia, India, Pakistan and Bangladesh. This resulted in over 20,000 visitors from nearly 90 countries and regions pre-registering their visit. 

Owned by CEMATEX and its Chinese partners, ITMA ASIA + CITME 2022 is organised by Beijing Textile Machinery International Exhibition and co-organised by ITMA Services. The Japan Textile Machinery Association (JTMA) was a special partner of the show.

The next ITMA ASIA + CITME exhibition is scheduled from October 14-18, 2024 at the National Exhibition and Convention Centre in Shanghai.

Around 40 VDMA companies showcased their products at the ITMA ASIA + CITMA exhibition held in Shanghai on November 19. They presented a comprehensive range of machines utilized in spinning and manmade fibers, nonwovens, weaving, braiding, knitting and hosiery, finishing and dyeing, and textile processing. This strong representation was part of the broader German presence at the exhibition, which included 60 exhibitors from the country.

The VDMA Textile Machinery Association and VDMA China were notably located in Hall 8 zone B. The inaugural day featured a conference that was addressed by Janperter Horn, Chairman, VDMA Textile Machinery Association. Horn said the event provided an opportunity for association members to engage with customers and partners in person. He emphasized the significance of strengthening relations with China and other countries and forming new partnerships.

Speaking on the German textile industry, Horn highlighted a slight decrease in textile and machinery exports to €1.7 billion between January and August of the current year. Exports to major markets saw a drop in this period, including a reduction in exports to China from €453 million to €440 million, Turkey from €265 million to €205 million, the US from €144 million to €177 million, and to India from €228 million to €170 million.

As per recent VDMA business climate survey among textile machinery companies in China, nearly 75 per cent participants regarded their present business situation as either good (6 per cent) or satisfactory (69 per cent). Looking ahead, about 50 per cent the companies anticipate a market decline in the coming quarter, while 44 per cent expect it to remain stable. Moreover, 63 per cent anticipate retaining their employees in the coming years.

The recent MoU between the APTMA Cotton Foundation (ACF) and Better Cotton Initiative Pakistan (BCI) will boost cotton production in Pakistan, say experts.

The MoU will facilitate more cooperation between the two organisations to foster cotton industry growth in Pakistan. It will strengthen the cotton value chain besides improving production and quality, and enabling market integration and linkages for cotton products, 

It will also facilitate a traceability system aligning with international rules and standards. BCI will act as the program partner for the MoU and provide technical support for Better Cotton development in Pakistan. It will organise assessments, and mobilise financial and technical partnerships. BCI will also help APTMA integrate Better Cotton criteria into national cotton production technology and training materials.

Acting as the promoting agency, ACF will prepare training materials, and invite APTMA representatives to participate in BCI’s strategic planning meetings and seminars on Better Cotton. It will also collaborate with BCI to ensure traceability across the supply chain of Better Cotton produced in areas operated by ACF.

The recent depreciation of the Indian rupee is seen as a potential boon for the country's labor-intensive export sectors, say experts. They believe the devaluation could lead to a 2-19 per cent increase in outward shipments of products such as readymade garments, carpets, and handicrafts. Handicraft exporters, in particular, stand to benefit significantly with a potential 100 per cent gain.

Exporters could see a eight per cent gain if the rupee depreciates approximately 10 per cent, coupled with a reduction in the import content of their goods to 20 per cent. Moreover, the depreciation may be advantages in contract negotiations, as highlighted by Ajay Sahai, Director General of the Federation of Indian Export Organisations.

The global economic slowdown has taken a toll on labor-intensive sectors, with a 21.9 per cent decline in apparel production during the first half of 2023-24. The leather industry also faced growth stagnation and apparel production remained 34 per cent lower than the corresponding period in pre-COVID-19 year of 2019-20. Leather exports declined 22 per cent  from their pre-pandemic levels.

Specifically, ready-made garment exports saw a 14.58 per cent year-on-year decline to $7.82 billion during the April-October period. Handicrafts and leather product exports also recorded declines of 11.37 and 11.74 per cent, respectively.

In the April-October period, India's overall merchandise exports decreased 7 per cent to $244.89 billion, while imports fell 8.95 per cent to $391.96 billion.

India’s prominent hub for man-made fabric textiles Surat, has experienced a surge in apparel and textile exports driven by ongoing festive seasons and wedding festivities. 

Despite a nationwide decline of 0.41 per cent in textile exports and 15 per cent in apparel exports from April to October 2023, textile mills in Surat, including areas like Palsana and Kadodara, continued operations round the clock. The festive season has led to increased demand, particularly for polyester fabric, with a notable rise in printing orders, says Jitu Vakharia, President of the South Gujarat Textile Processors Association (SGTPA). 

Despite challenges such as labor shortages due to workers returning home for Diwali, the industry is resilient, showcasing a rebound to pre-pandemic growth levels after the difficulties faced during lockdowns. India's largest man-made fiber wholesale markets on Ring Road also reported heightened demand for various textile products like saris, lehengas, kurtis, gowns, salwar suits and leggings, with traders exporting goods to different parts of the country. 

Ashish Gujarati, a key figure in the powerloom sector, notes rising domestic demand for polyester fabric, with the industry weaving 3.5 meters daily to meet this surge. However, despite the success, global exports continue to face challenges due to the ongoing global recession. As per Confederation of Indian Textile Industry (CITI), India's textile and apparel exports saw a decline of 6.67 per cent during April-October 2023 compared to the previous year, with cumulative exports dropping by 26.55 per cent in October 2023 compared to October 2021.

The Myanmar Textile and Machinery Fair 2023 will take place in Yangon from December 8 to 10, 2023, organized by the Myanmar Garment Manufacturers Association (MGMA). In collaboration with the Chinese Textile and Garment Association in Myanmar, the event aims to enhance cooperation between the textile and garment industries of both countries.

Daw Khine Khine New, Secretary General, MGMA, anticipates the fair will serve as a platform for Myanmar to showcase its fashion market in collaboration with international partners. The exhibition will feature garments, shoes, and bags from 25 Chinese brands, fostering opportunities for local small and medium-sized enterprises to promote their products.

The Confederation of India Textile Industry (CITI) latest analysis of the Indian textile and apparel (T&A) sector’s performance in October 2023 has highlighted what experts have been saying about the sector’s export capabilities, mirrored by financial stocks of reputable manufacturers. 

October 2023 enabled textile exports to gain 24 per cent over the same month in 2022 while the cumulative exports of T&A grew 10. 44 per cent in October 2023 compared to October 2022. However, the cumulative T&A exports have actually underperformed in the six-month period of April and October 2023 by 6.67 per cent compared to the same period in 2022 and by 15.55 per cent in the same period of 2021. While textile sector’s exports look buoyant, the opposite is true for apparel sector. The analysis shows a depressed industry that is unable to cross the threshold to growth. In October 2023, apparel exports decreased 8.08 per cent. 

Mixed overall performance

The last six months have not been kind. This year, between April and October textile exporters saw a cumulative negative growth of 0.41 while apparel sector saw a larger negative growth of 14.58 per cent. Compared to the same six months in 2021, this year export of textiles was negative by 19.55 per cent apparel expots was negative by 8.8 per cent. The silver lining is the T&A sector’s contribution to the nation’s entire export in 2021 was 9.7 per cent which fell 2022 to 7.31 per cent but rose slightly this year to 7.6 per cent. On the other hand, popular Indian raw cotton and waste had the worst export performance with a whopping decline of 78.69 per cent compared to same period in 2022. 

The overall state of depressed exports was mirrored in the manufacturing sector. Despite export orders declining, the domestic apparel market was projecting a windfall due to the festive season. However, this windfall didn’t turn out to be as expected. A reputable Coimbatore-based manufacturer attributed several reasons for this decline in manufacturing and exports. First, the Quality Control Order recently introduced by the government, which mandates a Bureau of Indian Standards certification for man-made fibre, including those that are imported, has led to steep decline in exports as textile manufacturers are unable to source these raw materials as per government specifications in the international markets.

Implication for the workforce 

The president of Tiruppur Exporters Association, KM Subramaniam is confident the drop in exports is a temporary phase. He feels while most garment exporters have reduced workers’ shifts or done away with overtime as production has gone into a loss, so far workers have not lost jobs and the recent announcement of drawback in duty hikes is expected to revive exports and hopefully have factories running in profitably again. 

While this may sound optimistic, there are others who don’t necessarily reciprocate Subramaniam’s optimism. Clothing Manufacturers Association of India (CMAI) Chief Mentor Rahul Mehta says, the domestic market has been slow since mid-March and compared to last year growth is flat. If low production trend continues for another couple of months, he feels job losses are inevitable after the end of the festive season. 

The CITI monthly report indicates a mixed performance, whilst some recent reports have presented doom and gloom. Indeed there is not much clarity on how the sector will pan out by the end of this fiscal. If demand revives in Western markets India’s apparel exports can surely look up.