The Italian textile and apparel industry has encountered a sharp reversal in trade momentum as of early 2026, following a resilient performance throughout the previous year. New data from the National Institute of Statistics (Istat) reveals a significant downward shift in January 2026, with national exports declining by 4.6 per cent and imports dropping by 7.4 per cent Y-o-Y. This cooling trend is primarily attributed to a 5.5 per cent slump in demand from non-European Union markets, which has overshadowed a modest 1.4 per cent monthly increase in intra-EU shipments.

While the sector achieved a trade surplus of €1.089 billion, the overarching narrative is one of cautious consolidation as manufacturers grapple with high energy costs and shifting global consumption patterns.

Navigating regulatory shifts and digital integration

Despite current trade volatility, Italian firms are intensifying investments in ‘Industry 4.0’ and circularity to maintain a competitive edge. The industry is currently in a high-stakes transition toward the 2027 EU Digital Product Passport mandate, which requires total transparency in supply chains. We are seeing a strategic shift where trade compliance is moving from a back-office function to a core competitive advantage, notes industry analyst Marco Rossi. Currently, while Italy represents the fourth-largest apparel market in the EU with a valuation exceeding €70 billion, only 1 per cent of clothing is recycled, prompting a rapid scaling of eco-design initiatives.

Luxury resilience and the premium segment paradox

A distinct divergence is emerging within the market: while volume-driven apparel faces headwinds, the luxury segment remains on a growth trajectory. Projections indicate the Italian luxury goods market will reach $20.15 billion by late 2026, supported by a 4.24 per cent CAGR in the men's luxury category. Brands like Zegna, which reported a 10.2 per cent revenue increase, exemplify a successful transition to direct-to-consumer models. However, the broader sector remains vulnerable to ‘inflationary fatigue’ in the US and China, forcing a focus on high-value, traceable products to justify premium price points in an increasingly price-sensitive global landscape.

Sistema Moda Italia (SMI)

As the primary federation representing the Italian fashion and textile industry, SMI oversees a network that generates nearly €60 billion in annual turnover. Focusing on high-end spinning and weaving, the organization’s 2026 roadmap prioritizes ‘Made in Italy’ traceability and nearshoring. Despite recent quarterly dips, SMI targets a return to 3 per cent export growth through digital retail innovation.

India’s textile and apparel shipments to the United States witnessed a significant downturn in the opening months of 2026, with export values to the nation’s largest trade partner sliding by 18.2 per cent in January and 28.7 per cent in February. Total shipments for the two-month period fell to $1.34 billion, down from $1.69 billion a year earlier. This contraction is primarily attributed to a broader slowdown in US discretionary spending, where consumer confidence has been tempered by persistent inflation. While industrial bodies like the Confederation of Indian Textile Industry (CITI) highlight that India’s decline is less severe than China’s 50 per cent slump, the data underscores a volatile transition period for Indian manufacturers who are struggling to maintain margins against rising input costs and shipping disruptions.

Structural shifts and comparative competitiveness

The sector currently faces a complex competitive landscape as Vietnam continues to outperform regional peers, recording a 5 per cent Y-o-Y growth in US exports during the same period. Vietnamese exporters benefit from a robust network of over 16 Free Trade Agreements (FTAs) and a high-tech manufacturing base that has successfully offset rising labor wages. In contrast, Indian exporters are navigating the reinstatement of an 11 per cent import duty on raw cotton as of January 1, 2026, which has inflated production costs by an estimated 4-6 per cent. No amount of duty advantage can salvage a season if the demand at the top of the supply chain compresses, stated a senior trade analyst, referencing the missed peak-season orders that have hindered an immediate recovery despite recent US tariff adjustments.

Future outlook and policy interventions

To arrest this slide, the Indian government has committed to an Export Promotion Mission with a Rs 25,060 crore outlay through 2031, focusing on interest subventions and collateral guarantees for MSMEs. Strategic opportunities are emerging in the Man-Made Fiber (MMF) and technical textiles segments, which showed a marginal 1.01 per cent growth in January, defying the general downward trend. The industry is also pivoting toward ‘China Plus One’ strategies, with Odisha emerging as a new high-tech hub to leverage logistical advantages. As the domestic market is projected to reach $115 billion by late 2026, the sector’s long-term resilience will depend on accelerating value addition and securing duty-free access to raw materials to compete with the structural cost advantages held by Bangladesh and Vietnam.

Sustainable manufacturing leadership

Epic Group is a premier Hong Kong-based manufacturer specializing in high-quality woven tops and denim for global retail giants. With a historical shift from trading to large-scale production in 2005, the group operates across Bangladesh, Vietnam, and Jordan. Its 2026 expansion into Odisha, India, via a Rs 220 crore net-zero facility, targets a $1 billion global revenue milestone.

The group remains a key player in the US and EU markets, focusing on decarbonized supply chains and technical apparel innovation.

Hong Kong’s apparel titan, Epic Group, is slated to launch its inaugural Indian manufacturing unit on 29 April 2026, in Khurda, Odisha. Operated under the subsidiary Trimetro Garments India, this Rs 220 crore facility represents a strategic diversification of the company’s manufacturing footprint beyond its traditional bases in Bangladesh and Vietnam. The 40-acre site is engineered as a ‘Green Factory,’ aiming for net-zero emissions through the integration of India’s first high-temperature electric heat pumps for industrial laundry. By replacing conventional coal-fired boilers, the company is positioning itself to meet the stringent ESG requirements of premium global retailers in the US and Europe.

Regional hub for high-tech apparel production

The Odisha venture is more than a capacity expansion; it is a play for technical excellence in the Indian apparel sector, which is projected to reach $115 billion by late 2026. The plant will generate over 6,000 jobs, focusing on high-tech garment production and specialized denim finishing. This investment aligns with Odisha's recent industrial momentum, characterized by a Rs 40,811 crore project pipeline recently highlighted by Chief Minister Mohan Charan Majhi. Ranjan Mahtani, Executive Chairman notes, the state’s ‘pro-business environment and skilled workforce’ were decisive factors in establishing this export-oriented hub.

Operational challenges and sectoral impact

While the project faced initial construction delays due to the complex implementation of ‘Green Steel’ TMT bars and advanced decarbonization technology, its completion signals a shift in the regional retail landscape. For the apparel industry, the Khurda plant serves as a case study in large-scale sustainable manufacturing. As fast fashion and conscious consumerism drive a 10.5 per cent growth in the Indian apparel market for FY26, Epic Group’s entry provides a competitive alternative to Southeast Asian hubs, leveraging India’s logistical advantages and favorable textile policies to secure long-term supply chain resilience.

Global apparel excellence

Founded as a textile trading house and evolving into a premier manufacturer by 2005, Epic Group specializes in high-quality woven tops, bottoms, and denim. Operating across Bangladesh, Jordan, Ethiopia, and now India, the group services major global retailers while pursuing aggressive decarbonization targets. With a focus on sustainable innovation and technical apparel, Epic Group continues to expand its production capacity to meet rising demand in the Western and emerging Asian markets.

The Bangladesh Textile Mills Association (BTMA) has strengthened a strategic alliance with international stakeholders to catalyze a technological overhaul within the domestic apparel sector. By signing a Memorandum of Understanding with the Shanghai Textile Association, LinkWell Exhibition Co, and ECO Expo, the BTMA has secured a roadmap for the 23rd Dhaka International Textile and Garment Machinery Exhibition (DTG), scheduled for December 16–19, 2026. This collaboration arrives at a critical juncture as the industry seeks to mitigate a recent 18 per cent Y-o-Y contraction in RMG exports by integrating high-efficiency, automated manufacturing solutions.

Strategic integration of industry 4.0 technologies

The partnership focuses on bridging the gap between local manufacturers and global technology providers. Industry leaders emphasize, moving beyond traditional production models is no longer optional; it is a commercial necessity to counter rising operational costs and volatile energy supplies. This synergy will transform the DTG platform into a global nerve center for innovation, noted Abdullah Al Mamun, Convener, DTG Committee. By facilitating direct access to advanced spinning, weaving, and knitting machinery, the agreement aims to enhance the competitiveness of Bangladeshi factories as they navigate the complexities of the upcoming LDC graduation.

Navigating market volatility through automation

Current market data suggests, while global demand remains subdued due to inflationary pressures in the EU and US, the shift toward sustainable and smart manufacturing provides a distinct growth path. The 2026 exhibition is projected to host over 1,200 exhibitors, focusing on water-saving technologies and AI-driven quality control. This transition is essential to maintaining Bangladesh’s 7 per cent share of the global apparel market, especially as regional competitors like India and Vietnam intensify their focus on high-value, man-made fiber products.

BTMA operations and strategic outlook

The Bangladesh Textile Mills Association represents the primary textile sector, encompassing spinning, weaving, and dyeing-finishing mills. Serving as the backbone of the $45 billion RMG export industry, the association focuses on backward linkage self-sufficiency. Current growth plans prioritize vertical integration and the adoption of green technologies to meet stringent EU environmental regulations by 2027.

The Indian textile and apparel industry is transitioning from environmental ambition to operational reality, driven by a tightening global regulatory landscape and a national push for export competitiveness. At the inaugural Eco-Stitch Sustainability Conclave held in Mumbai on April 3, 2026, industry leaders and policymakers signaled that integrating ESG (Environmental, Social, and Governance) principles is no longer a peripheral CSR activity but a core requirement for accessing international markets through Free Trade Agreements (FTAs).

Aligning policy with global export standards

Inaugurating the event, Vrunda Desai, Textile Commissioner emphasized, India’s roadmap toward becoming a global manufacturing hub - or ‘Atmanirbhar’ - is inextricably linked to sustainability. As international buyers increasingly demand transparency and circularity, the Ministry of Textiles is urging manufacturers to view green business strategies as a prerequisite for trade. The conclave, organized by the Clothing Manufacturers Association of India (CMAI) and SU.RE, served as a strategic forum for over 250 decision-makers to align the domestic supply chain with these evolving global benchmarks.

Operationalizing the 3Rs through artificial intelligence

The shift toward ‘actionable pathways’ was evidenced by the debut of experiential 3R Zones (Reuse, Repurpose, Recycle), which moved beyond theory to showcase integrated waste-to-wardrobe supply chains. A central theme of the summit was the role of technology in bridging the gap between intent and implementation. Industry experts highlighted how Automation and AI are now being deployed to drive traceability and resource efficiency, transforming circularity from a late-stage consideration into a design-phase priority.

Scaling sustainable infrastructure and financial inclusion

The transition is being supported by institutional frameworks, such as UNIDO’s technology innovation roadmap, which provides a unified platform for technical and financial support for textile clusters. Leaders from Aditya Birla Fashion & Retail and Khadi& Village Industries Commission noted that as India moves toward becoming the world’s third-largest economy, the textile sector must balance high-volume production with resource efficiency. This includes revitalizing heritage fabrics like Khadi through modern design and securing green finance to support MSMEs in adopting responsible manufacturing practices.

Recognizing excellence in the green transformation

To formalize this industry-wide commitment, the event concluded with the CMAI SU.RE Sustainability Awards, honoring organizations that have successfully scaled sustainable materials and digital innovation. From large-scale players like Birla Cellulose to startups focusing on fiber innovation, the accolades underscored a maturing ecosystem where social impact, traceability, and circularity are becoming the primary metrics of corporate success in the Indian fashion landscape.

The Indian textile and garment sector faced significant headwinds in the first two months of 2026, as exports to the United States experienced a sharp contraction. According to the latest data from the Confederation of Indian Textile Industry (CITI) and the US Office of Textiles and Apparel (OTEXA), combined shipments fell by 3.75 per cent in January 2026, with a more drastic 28.7 per cent Y-o-Y plunge recorded in February, totaling just $0.63 billion. This downturn, marking six consecutive months of decline, is primarily attributed to a combination of high legacy tariffs and a broader compression in American discretionary spending.

Comparative performance and competitive realignment

While India’s exports slumped, the competitive landscape shifted. Vietnam emerged as a primary beneficiary, maintaining 5 per cent growth in January and February, while China witnessed a staggering 56 per cent contraction in January shipments to the U.S. market. Despite the overall decline, India demonstrated relative resilience in the man-made fiber (MMF) segment, which grew by 1.01 per cent to $430.29 million in January. This highlights a critical structural shift as global buyers increasingly pivot toward synthetic and high-performance technical textiles, areas where India is aggressively scaling capacity through its Production Linked Incentive (PLI) schemes.

Tariff adjustments and the recovery outlook

The export slump was exacerbated by punitive tariffs that remained in force until February 7, 2026. Although the US Supreme Court subsequently struck down these duties - replacing them with a more competitive 10 per cent global tariff - recovery remains lagged due to missed seasonal order cycles.

Exporters are now looking toward the second half of 2026, banking on improved tariff parity and the potential ratification of the India-UK Free Trade Agreement to stabilize the trade balance.

The Indian textile industry is a $194 billion value chain contributing 8 per cent to the nation's total exports. It dominates the global cotton yarn trade while rapidly expanding into MMF and technical textiles. With a target of $100 billion in exports by 2030, the sector focuses on achieving vertical integration and net-zero manufacturing standards.

Kontoor Brands has officially appointed Erinn Murphy as the Head - Finance and Operations, Helly Hansen, signaling a decisive move to integrate financial rigor with supply chain excellence. This leadership transition occurs as the outdoor apparel sector faces fluctuating consumer demand, requiring a more synchronized approach between fiscal planning and market delivery. By centralizing these core functions under Murphy, Kontoor aims to optimize Helly Hansen’s operational efficiency, ensuring the brand can scale effectively across its primary European and North American territories. Industry analysts note that this consolidation is a defensive measure against rising logistics costs and an offensive strategy to capture a larger share of the premium technical gear market.

Navigating the omni-channel apparel landscape

The appointment comes at a critical juncture where Helly Hansen is aggressive in its pursuit of direct-to-consumer (DTC) dominance. Current retail data indicates, high-performance brands are seeing a 15 per cent Y-o-Y increase in DTC engagement, a trend Kontoor intends to leverage through enhanced inventory management systems. Efficiency in the modern retail environment is no longer just about the balance sheet; it is about the speed of the global supply chain, notes Marcus Thorne, Apparel Consultant. Despite the volatility in global textile trade, Helly Hansen’s recent performance remains robust, buoyed by a 12 per cent uptick in wholesale volume. Murphy’s primary challenge will involve mitigating the impact of inflationary pressures on raw materials while maintaining the premium margins that define the Helly Hansen portfolio.

Institutional growth and market performance

Kontoor Brands serves as a global powerhouse in the lifestyle and denim sectors, primarily managing the iconic Wrangler and Lee portfolios alongside its high-performance Helly Hansen division. The company operates across more than 60 countries, maintaining a strong foothold in mass-market retail and specialized outdoor segments. Founded as a spinoff from VF Corporation in 2019, Kontoor has focused on debt reduction and margin expansion. Current financial forecasts remain optimistic, driven by a diversified product strategy and a long-term plan to increase digital penetration to 20 per cent of total revenue by the end of the next fiscal cycle.

For decades, the global textile industry has been a game of high-stakes gambling: manufacture thousands of identical garments, ship them across oceans, and pray the consumer doesn't change their mind. But at the Bombay Exhibition Center this week, a panel of global experts and local disruptors officially called time on the "Produce-to-Pollute" era.

The session, titled "Digital Textile Printing: The Next Frontier of Customization," moved beyond machine specs to deliver a blunt message: The era of the mass-produced warehouse is being replaced by the "just-in-time" digital studio.

The Ford fallacy vs. The Gen Z reality

Moderator Sanjay Chawla (Founder, DFU I FashionatingWorld) set the stage by referencing Henry Ford’s 20th-century logic of "any color as long as it's black." In 2026, Chawla argued that logic is a financial death sentence.

"Today’s customer is individualistic. They don’t want a range you’ve decided for them; they want a design they’ve sparked, on a fabric they trust, delivered yesterday," Chawla noted. This shift from Mass Production to Mass Customization is the engine driving a global market now valued at $3–4 billion, yet in India, penetration remains at a modest 5-7%—a gap the panel identified as a massive "first-mover" opportunity.

The Global Strategy: Water, Pigments, and Politics

While India looks at digital through the lens of efficiency, the global perspective is increasingly driven by survival. Dario Bernasconi (MS Printing Solutions) highlighted that in Europe and Taiwan, "politics" and environmental mandates are the primary drivers.

The global frontier is no longer just about printing; it’s about chemistry. Bernasconi noted a decisive move toward pigment solutions that require zero water, effectively decoupling textile growth from environmental degradation. "We aren't just replacing screens; we are introducing a new type of pigment solution to reduce world pollution," he explained.

Table 1: The Efficiency Gap (Conventional vs. Digital)

The "Tirupur Dilemma": Can India compete with China?

A poignant moment in the session occurred when an entrepreneur from Tirupur—India’s knitwear capital—expressed fear over cheap Chinese DTF (Direct-to-Film) imports. The panel’s response was a rallying cry for "Atmanirbhar" (Self-Reliant) technology.

Deepak Siddharth K (CEO, RDX Digital Technologies) countered that the price gap is evaporating. By manufacturing both the high-speed machinery and the inks (in collaboration with experts like Dr. M. P. Raghav Rao of Fujifilm Sericol) within India, the "Razor and Blade" cost model is finally favoring domestic printers. "When we manufacture the ink and the machine 50 kilometers from your factory, the Chinese competition disappears," Deepak asserted.

AI: From sketchpad to screen in 20 seconds

The most radical shift discussed wasn't mechanical, but cognitive. AI is now acting as the "bridge" between human imagination and the printer head. Deepak Siddharth K described a world where AI-generated prompts allow anyone to become a designer.

When questioned about file sizes and "humanizing" AI prints, the panel was unanimous: Digital is the only technology that offers exact replication. Conventional methods require a "color master" to manually mix dyes for 20 screens; Digital sees millions of colors as easily as a desktop printer sees a PDF.

The Hybrid Roadmap: A pragmatic transition

For those hesitant to abandon their traditional roots, Arihant Jain of Apparel Tech and the wider panel proposed a "Hybrid Roadmap" as the most pragmatic transition for the Indian market. This strategy is not a total replacement of legacy systems but rather a sophisticated integration where digital and analog technologies work in tandem.

The process begins with the base, where traditional screens are utilized for cost-effective "discharge" printing or applying white under-bases, which remains significantly cheaper via screen than through digital inkjet. Once the foundation is laid, the detail is handled by digital heads, which effortlessly translate intricate, high-resolution AI designs and millions of colors—tasks that would require dozens of manual screens in a conventional setup. The roadmap concludes with the finish, using screens to apply tactile "special effects" like puff, glitter, or foil. Since these physical textures remain a challenge for digital jetting alone, this hybrid cycle allows Indian manufacturers to offer the best of both worlds: the infinite creativity of digital customization paired with the traditional "hand-feel" and special effects that the domestic market continues to demand.

The Narrative of the next five years

As the session concluded, the vision for 2030 emerged as a "Narrative of Uniqueness." The experts predict that packaging will be the next sector to be "digitized," and pigment technology will become the baseline for all ethical brands. Deepak Siddharth K ended with a bold forecast: within five years, digital will capture 30–40% of the Indian market.

The final takeaway for the Mumbai audience was clear: Digital printing is not a "different" way to print; it is a way to stop overproducing and start responding. India has the talent and now the domestic tech—the only missing ingredient is the speed of decision-making.

Textile flagship of the LNJ Bhilwara Group, RSWM has introduced its Autumn/Winter 2027 denim collection, titled In-DIG’o Alchemy, at the Gartex Texprocess India 2026 expo in Mumbai. This launch comes as India’s denim manufacturing capacity reaches approximately 1,600 million m annually, positioning the nation as the world’s second-largest producer. The collection is segmented into six specialized categories - Pulse, IndieCraft, Nova-Lab, Aerolite, MetroEdge, and Neo-City - engineered to meet the technical demands of high-performance urban wear and artisanal heritage aesthetics.

Capitalizing on global trade shifts

The unveiling aligns with a broader fiscal recovery for RSWM. Despite a moderate 8.2 per cent Y-o-Y revenue decline in Q3 FY26 to Rs 1,104.48 crore, the company achieved a significant 41.7 per cent rise in EBITDA, reaching Rs 82 crore through aggressive cost optimization. Management anticipates a growth catalyst via the recently concluded India-EU Free Trade Agreement, which removes tariffs of 8 per cent to 12 per cent, placing Indian denim on a level playing field with competitors like Bangladesh and Vietnam.

Innovation as a growth lever

The response to In-DIG’o Alchemy at Gartex 2026 confirms, the market is gravitating toward fabrics that balance scientific precision with responsible manufacturing, noted Rajeev Gupta, Joint Managing Director. To support this momentum, RSWM is executing a Rs 92 crore capital expenditure plan for knitted fabric expansion, aiming for full operational status by H1 FY2027. This initiative targets the fashion-intensive segment, including athleisure and loungewear, which currently commands 35 per cent of the knitted fabric market.

RSWM Limited is a premier Indian textile manufacturer specializing in high-quality synthetic, blended, and denim fabrics. Operating primarily in the B2B apparel and retail supply chains, the company exports to over 70 countries. Current growth strategies focus on high-margin value-added segments and sustainable ‘green’ fibers, supported by a robust recovery in bottom-line profitability despite global inflationary pressures.

The landscape of Indian textile manufacturing is undergoing a significant transition as the Hong Kong-based Epic Group prepares to inaugurate its first Indian manufacturing facility in Khurda, Odisha, on April 29, 2026. This Rs 220 crore investment marks a strategic pivot for the global garment leader, choosing Odisha’s burgeoning industrial ecosystem over traditional textile clusters in Western or Southern India. The 40-acre facility, operated via subsidiary Trimetro Garments India, is a cornerstone of a broader US $100 million expansion plan designed to leverage India’s vertically integrated fiber-to-fabric supply chain amid shifting global sourcing patterns.

Decarbonization and the net-zero manufacturing standard

Setting a new benchmark for technical textiles and apparel production, the Bhubaneswar-area unit is engineered to be net-positive in both energy and water. A critical innovation within the facility includes the world’s first deployment of high-temperature electric heat pumps for industrial laundry, developed in collaboration with Tonello Italy. By eliminating coal-fired boilers, Epic Group addresses the intensifying ESG demands from its top-tier clients, including Walmart and Levi Strauss & Co. Furthermore, the use of India’s first ‘green steel’ TMT bars in its construction underscores a commitment to minimizing embodied carbon across the entire textile value chain.

Economic impact and strategic workforce integration

The facility is projected to generate over 6,000 direct jobs, with a targeted focus on increasing female labor participation in the garment sector - a move supported by Odisha’s generous employment subsidies of up to Rs 7,000 per month for female workers. This inauguration coincides with a ‘second industrial revolution’ in the state, where major players like Page Industries and MAS Holdings are also grounding projects.

Epic Group is a premier Hong Kong-based apparel manufacturer producing 90 million garments annually for global giants like Uniqlo and Amazon. With a presence in Bangladesh, Jordan, and Vietnam, the group is now expanding aggressively into India to achieve a half-billion-dollar valuation by 2030 through net-zero, tech-driven production.