India's textile and apparel industry is ready for one of its biggest export opportunities in decades as the India-UK Comprehensive Economic and Trade Agreement (CETA) comes into force from today, July 15, 2026. By eliminating tariffs on 99 per cent of Indian tariff lines entering the UK, the agreement removes a long-standing cost disadvantage for Indian exporters and also improves their competitiveness in one of the world's largest fashion markets.

For years, Indian apparel and home textile exports attracted duties ranging from 8 to 12 per cent, while competitors such as Bangladesh benefited from preferential access. The new agreement effectively levels the playing field, allowing Indian suppliers to compete on quality, scale, innovation and supply-chain capabilities rather than sacrificing margins to offset tariff costs.

The impact extends well beyond export numbers. As per industry estimates India's textile and apparel exports to the UK is currently valued at $1.4 billion, and this could double to $2.8 billion by 2030. The agreement also strengthens India's broader ambition of achieving $100 billion in textile exports globally by the end of the decade.

India's textile and apparel sector, valued at nearly $179 billion, contributes around 2 per cent to GDP, 11 per cent to manufacturing gross value added and nearly 9 per cent of the country's total exports, making the agreement strategically significant for both industry and the economy.

A competitive reset

The UK's apparel market has been steadily diversifying sourcing away from China amid geopolitical uncertainty and supply-chain risk. The India-UK pact arrives at a time when British retailers are actively looking to broaden their supplier base. Leading retailers such as Primark, ASOS and Marks & Spencer already maintain sourcing relationships with Indian manufacturers, and the tariff elimination is expected to encourage larger procurement volumes across apparel, home textiles and fashion accessories.

As per Confederation of Indian Textile Industry (CITI), the agreement gives India the advantage needed to increase its market share. Rating agency ICRA expects textile exports to witness annual growth of 11-13 per cent as Indian suppliers capture a larger share of the UK's £14.28 billion apparel and home textile import market. Even before the agreement took effect, India's apparel shipments to the UK had grown by 13.4 per cent, while China's share of UK apparel imports declined by over 6 per cent, indicating that sourcing diversification was already underway.

Table: Top textile & apparel import sources & future outlook

Focus beyond cotton

The agreement also aligns with an important change within India's textile manufacturing. While India has traditionally been known for cotton-based production, global fashion demand has shifted towards performance wear, sportswear, technical textiles and blended fabrics. Reflecting this change, man-made fibres (MMF) and blended yarns now account for 52.2 per cent of domestic textile consumption, overtaking cotton for the first time.

Government initiatives such as the Production Linked Incentive (PLI) scheme have given a boost to investments in synthetic fibre manufacturing, technical textiles and value-added fabric processing. The UK agreement now offers these newly created capacities with duty-free access to premium international buyers. Besides garments, exporters expect strong demand for home textiles, upholstery fabrics, bed linen, towels and industrial textiles as lower landed costs improve India's competitiveness in Britain's premium home furnishing market.

Need to build scale

While tariffs have disappeared, execution will determine how much of the opportunity India can capture. One of India's longstanding challenges has been its fragmented manufacturing base. Unlike competing countries that operate mega integrated factories, many Indian apparel manufacturers continue to operate through smaller production units that often struggle with scale, consistency and lead times.

The government's PM MITRA programme aims to address this gap through seven integrated textile parks that combine spinning, weaving, dyeing, processing and garment manufacturing within single industrial ecosystems. Projects such as the Virudhunagar PM MITRA park in Tamil Nadu are expected to reduce logistics costs, improve production efficiency and shorten delivery timelines—factors increasingly valued by global retailers following pandemic-era supply disruptions. Experts believe stronger integration will also improve capacity utilisation across MSMEs while encouraging automation, digital manufacturing and higher productivity.

Sustainability as a market requirement

Tariff-free access alone is no longer sufficient to win export orders. British retailers require suppliers to demonstrate environmental compliance, ethical sourcing and complete supply-chain transparency. Sustainability has become a procurement prerequisite rather than a value addition. Major export clusters such as Tiruppur have invested extensively in zero-liquid-discharge treatment systems, renewable energy, recycled textiles and water-efficient processing.

Meanwhile, the Cotton Textiles Export Promotion Council (TEXPROCIL) has introduced blockchain-based cotton traceability, enabling buyers to digitally verify fibre origin from farm to finished garment. Such traceability is expected to become increasingly important as UK and European retailers strengthen due diligence requirements and environmental reporting.

Companies prepare for growth

Large exporters are already positioning themselves for increased UK demand.

Raymond Lifestyle for example has diversified its export portfolio by reducing dependence on the US market while expanding its presence in the UK and Europe. The company is scaling production at its Andhra Pradesh manufacturing facility from three to 11 production lines and expects export volumes to grow 20-25 per cent during the current financial year as CETA-driven orders begin flowing.

Similarly, India's largest apparel exporter, Shahi Exports, is well positioned. With over 50 vertically integrated factories, the company supplies several leading global fashion brands and has invested significantly in renewable energy and sustainable manufacturing. Its integrated model is expected to help it capitalise on larger sourcing commitments from UK retailers seeking reliable, compliant and scalable partners.

As global sourcing strategies continue to diversify beyond China, the India-UK trade agreement offers Indian manufacturers a rare combination of tariff competitiveness, policy support and increase production capacity. The next phase will depend on how effectively the industry scales operations, strengthens compliance and delivers the speed and consistency demanded by international fashion buyers. If executed well, CETA could become the catalyst that reshapes India's position in global textile trade over the coming decade.

Technology is reshaping one of fashion's oldest categories menswear. AI, digital body scanning and automated manufacturing are replacing conventional tailoring processes, enabling brands to deliver customized garments at scale while improving profit. The global made-to-measure suit market is valued at $3.6 billion in 2026, up from $3.34 billion in 2025, and is forecast to reach $4.95 billion by 2030, at 8 per growth annually.

Unlike traditional ready-to-wear garments that depend on forecasting demand and maintaining large inventories, made-to-measure retail follows a demand-led production model. This reduces excess inventory, markdowns and returns while allowing brands to cater to growing consumer demand for personalized fashion.

Personalisation moves from luxury to business strategy

Personalization has evolved from a premium service into a core retail strategy. AI-powered body scanning, automated pattern engineering and virtual fitting tools are helping apparel brands eliminate one of the industry's biggest cost centres, poor fit. Rather than producing garments across multiple standard sizes, retailers can now generate individual patterns from customer measurements and manufacture only after an order is confirmed. The approach minimizes inventory risk while delivering a more accurate fit.

Consumer demand is reinforcing this shift. Research by Vogue Business and Google LLC shows 69 per cent of consumers value AI-driven personalization, 62 per cent are influenced by personalized recommendations, while 37 per cent respond positively to customized offers. Brands adopting personalized retail strategies are also projected to achieve 17 per cent higher revenues, underlining the commercial value of technology-enabled customization.

Digital tailoring improves retail economics

The financial advantages of made-to-measure retail extend beyond customer satisfaction. Traditional premium apparel retailers often struggle with costly returns due to inconsistent sizing. Every returned garment increases logistics costs while forcing retailers to discount merchandise, eroding margins.

Digital tailoring addresses these inefficiencies through automated measurements, virtual garment visualization and algorithm-driven pattern adjustments. Instead of stocking multiple size combinations, retailers can operate with minimal inventory and manufacture garments only after purchase.

A practical example is Apex Menswear Group, which changed several stores into hybrid digital tailoring centres. Customers select fabrics, lapel styles and linings through digital interfaces before undergoing body scans. Measurement data is transmitted directly to manufacturing facilities, where automated systems generate customized patterns. The results reflect the economic impact of the model. Within one year, fit-related returns fell from 24 per cent to below 2 per cent, while the company's average order value increased 31 per cent, highlighting how personalization can simultaneously improve customer experience and profitability.

Growth outlook reflects market shift

The industry's outlook suggests that customized tailoring is becoming an increasingly important segment of premium apparel rather than a niche luxury offering.

The projected increase reflects broader changes in workplace dressing habits. As hybrid work models become established, consumers prefer versatile, semi-formal clothing that combines comfort with professional styling. Made-to-measure apparel occupies a middle ground between expensive bespoke tailoring and mass-produced ready-to-wear garments, making it attractive to a wider customer base.

Asia-Pacific emerges as the next growth engine

While Europe continues to account for the largest share of the global made-to-measure market due to its long-established tailoring heritage, future expansion is expected to be driven by Asia-Pacific. Rapid urbanisation, rising disposable incomes and the growth of the middle-class consumer base are creating strong demand for premium personalized apparel across the region. Investments in digitally enabled manufacturing facilities are also improving production efficiency by allowing faster pattern modifications and shorter delivery timelines.

For markets such as India, the trend gives numerous opportunities. India's established textile manufacturing base, growing apparel exports, rising premium fashion consumption positions it to benefit from global demand for digitally customised garments. Domestic fashion retailers are also gradually adopting technology-led retail formats that combine online design tools with in-store measurement services.

Sustainability strengthens business

Environmental considerations are becoming another important driver of the made-to-measure business model. Unlike mass production which often generates excess inventory and textile waste, customized manufacturing produces garments only after purchase. This reduces unsold stock while improving material utilisation. At the same time, consumers are demanding ethically sourced natural fibres and greater supply chain transparency. As a result, many brands are integrating traceable fabrics with digital production workflows, combining sustainability objectives with operational efficiency.

The merging of AI-powered customization, automated production and responsible sourcing is creating a business model that aligns with both consumer expectations and retailer profit.

As premium apparel companies continue investing in digital infrastructure, made-to-measure tailoring is moving beyond its traditional luxury positioning to become a scalable retail model capable of delivering stronger margins, lower inventory risk and a more personalized shopping experience. With the market expected to touch $5 billion by 2030, technology-enabled tailoring is set to become an influential segment of the global fashion industry.

Danish fashion house Ganni has unveiled the third and final installment of its collaborative series with Disney, marking the conclusion of a creative journey that began earlier this year. Debuting on July 8, 2026, the 12-piece capsule collection shifts the narrative focus to a vibrant Parisian adventure featuring Disney icons Daisy Duck and Minnie Mouse. This release serves as the culmination of a multi-drop strategy that successfully charted Daisy Duck’s evolution from personal self-discovery to a celebratory excursion in the French capital, blending GANNI’s signature Scandinavian flair with timeless Disney storytelling.

Designing for the modern minimalist

The collection emphasizes graphic-driven essentials tailored for contemporary wardrobes, including ringer and striped jersey T-shirts, relaxed crewneck sweatshirts, and practical accessories. A notable inclusion is an oversized leopard-print canvas tote featuring original artwork of the duo in Paris, complemented by new colorways for the brand’s popular recycled leather cardholders. To commemorate the launch, Ganni hosted an exclusive luncheon in Paris, utilizing the city as the live backdrop for the campaign’s imagery. This experiential approach mirrors the brand's broader retail philosophy, which consistently prioritizes community-led engagement events- similar to the pop-up magazine store takeovers held in Copenhagen, New York, and Seoul during earlier phases of the collaboration.

Balancing playful prints with functional silhouettes

Headquartered in Copenhagen, GANNI is a global fashion brand known for its "Scandi 2.0" aesthetic, which balances playful prints with elevated, functional silhouettes. The brand maintains a strong presence across ready-to-wear, footwear, and accessories. Currently expanding its omnichannel reach, GANNI focuses on sustainable innovation and high-velocity, community-driven retail collaborations.

French fashion house Chloé has officially expanded its retail footprint in Southeast Asia by inaugurating a new boutique at Saigon Centre, Ho Chi Minh City. This strategic entry, facilitated through a partnership with the DAFC (Duc Anh Fashion Company) portfolio, underscores the brand's commitment to deepening its presence in Vietnam’s rapidly evolving luxury landscape. By securing a prime location within one of the city's most prominent luxury retail hubs, Chloé aims to capitalize on the country's burgeoning demographic of affluent consumers. This move aligns with broader industry observations regarding Vietnam's transition into a high-value economy, where an expanding middle class and an increasing number of high-net-worth individuals are driving sustained demand for global heritage labels.

Navigating the future of experiential retail

The Saigon Centre boutique serves as more than just a point of sale; it acts as a tactical touchpoint for the brand to connect with a younger, globally aware consumer base. As Vietnam’s retail sector embraces the "experiential retail" model, Chloé is positioning its store to offer a curated environment that mirrors the Maison's Parisian identity and strong craftsmanship. This expansion occurs as international luxury brands are increasingly leveraging Vietnam’s participation in various free trade agreements—such as the EVFTA—to streamline market access and enhance the availability of premium goods. By integrating into this high-growth ecosystem, Chloé is well-positioned to strengthen its regional market share while catering to a local clientele that increasingly prioritizes personal branding and luxury consumption.

Instinctive femininity and Parisian ease

Founded in 1952 by Gaby Aghion, Chloé is a renowned French luxury fashion house celebrated for its instinctive femininity and Parisian ease. The brand offers ready-to-wear, leather goods, footwear, and accessories. With a global presence, it continues to expand into key emerging markets through strategic retail partnerships and seasonal boutiques.

The Bangladeshi apparel sector is undergoing a significant transformation, effectively shaking off a period of sluggish performance. ollowing a challenging 2025 where export growth stalled at a modest 0.89 per cent, the industry has posted a marked recovery throughout mid-2026. Official data from the Export Promotion Bureau confirms, merchandise exports increased by 25.91 per centY-o-Y in June 2026, with the ready-made garment sector serving as the primary engine for this momentum. This shift highlights a resilient transition from stagnant figures to a robust quarterly outlook, with industry projections estimating 8–10% growth for the third quarter of 2026.

Capturing market share from global competitors

A critical tailwind for Bangladesh has been the recalibration of global sourcing strategies, particularly as Western buyers reduce reliance on Chinese manufacturing due to tariff pressures. In the United States market, Bangladesh officially surpassed China to become the second-largest apparel supplier by value in early 2026. While total US apparel imports have contracted, Bangladesh’s relative stability compared to the sharp decline in Chinese shipments has secured its strategic standing. This reality has opened the door to new possibilities, notes Kazi Fahad, Director,  Bangladesh Printed Apparel and Accessories Manufacturers and Exporters Association. Now is the time to increase production capacity and ensure faster service to gain further trust from global buyers.

Addressing structural constraints

Despite this resurgence, industry leaders caution that long-term competitiveness requires addressing domestic challenges, including high bank interest rates, energy supply volatility, and the looming transition from Least Developed Country (LDC) status. The industry is currently prioritizing technological investment and production automation to maintain margins as duty-free access undergoes potential changes by 2029. By focusing on high-value categories and diversifying beyond traditional markets, manufacturers are aiming to solidify their position against intensifying competition from regional peers like Vietnam.

As the world’s second-largest apparel exporter, the Bangladesh garment industry functions as the nation’s economic backbone, accounting for approximately 80 per cent of total export revenue. Key product categories include knitwear, woven garments, and high-performance sportswear. Current growth plans emphasize factory modernization and product diversification to maintain global competitiveness post-LDC graduation.

Bharat Tex 2026 has officially opened its doors at Bharat Mandapam, New Delhi, marking a significant escalation in India's efforts to integrate deeper into the global textile value chain. The third edition of this exposition has attracted representatives from 160 countries, underscoring its evolution into a premier venue for international sourcing and strategic partnership. With over 1,600 exhibitors showcasing more than 20,000 product varieties- spanning the entire spectrum from fibre and yarn to high-fashion apparel and technical textiles - the event serves as a critical interface between Indian manufacturing prowess and global retail demand.

Advancing innovation and sustainability

Beyond mere trade volume, the event is structured to accelerate the sector's shift toward Industry 5.0, circularity, and smart manufacturing. A robust program featuring more than 100 knowledge sessions provides a forum for policymakers and industry leaders to address critical issues such as supply chain resilience, ESG compliance, and advanced material research. By facilitating over 4,000 curated business-to-business (B2B) meetings and the signing of numerous Memorandums of Understanding (MoUs), the platform aims to formalize long-term investments that prioritize sustainable production. This institutional alignment is essential as India seeks to pivot from volume-driven exports to value-added manufacturing, ensuring the nation remains a trusted, competitive partner in the rapidly evolving global textile landscape.

Fostering sustainable trade practices

The Bharat Tex Trade Federation is a consortium of leading Export Promotion Councils and textile industry bodies, supported by the Ministry of Textiles, Government of India. The organization focuses on promoting India’s textile ecosystem globally, scaling domestic manufacturing capabilities, and fostering sustainable trade practices through large-scale international exhibitions and policy dialogues.

The Government of Rajasthan has inaugurated a state-level, dedicated textile cell designed to serve as a catalyst for industrial modernization and international market expansion. This initiative is a core component of the state’s efforts to implement the Rajasthan Textile and Apparel Policy-2025, which classifies textiles as a critical thrust sector. Neelabh Saxena, Industry and Commerce Commissioner, confirms, the cell will function as a centralized hub for market intelligence, technology dissemination, and bottleneck resolution. By conducting multi-pronged outreach - ranging from industrial site visits to benchmarking against global textile centers - the cell aims to streamline operations for the state’s 1,800-plus active textile and apparel units.

Targeting value-added export expansion

Rajasthan currently contributes approximately Rs 13,500 crore to the state’s total export basket, representing a significant 13 per cent share. With the state government setting an ambitious goal to triple or quadruple this export figure, the new cell is prioritizing the integration of high-value manufacturing and sustainable production methods. The strategy involves identifying potential in 11 districts, including champion hubs like Bhilwara, Jaipur, and Jodhpur, while integrating four aspirational districts into the broader value chain. This institutional support arrives as the state prepares to host an international textile summit in October 2026, intended to foster strategic partnerships and attract capital investment. By transitioning focus from raw fiber production to finished, innovation-led goods, Rajasthan aims to boost its position as a globally competitive textile destination.

Fostering integrated industrial ecosystems

The Rajasthan textile sector encompasses a diverse value chain, spanning world-renowned wool production, cotton cultivation, and traditional hand block printing. Key focus areas include scaling export volumes, enhancing technological capabilities through the Rajasthan Textile and Apparel Policy-2025, and fostering integrated industrial ecosystems to drive long-term economic prosperity and employment generation.

The Government of India’s decision to waive the 11per cent customs duty on raw cotton imports through October 31, 2026, serves as an important strategic intervention to address structural cost disadvantages. By effectively removing the Basic Customs Duty and the Agriculture Infrastructure and Development Cess, the policy aims to bridge the price parity gap that has historically favored regional textile hubs like Vietnam and Bangladesh. For domestic spinners and garment exporters, this relief is not merely a temporary cost-saver but a vital mechanism to stabilize production during the pre-harvest lean season. Industry data indicates an annual domestic supply shortfall of approximately 40 to 50 lakh bales, making this duty-free access essential for maintaining export commitments under long-term supply agreements.

Scaling beyond tariff interventions

While the waiver provides immediate relief, industry leadership emphasizes that long-term competitiveness remains tethered to productivity and quality improvements. Ashwin Chandran, Chairman, Confederation of Indian Textile Industry (CITI), noted, the 11 per cent tariff had previously acted as a significant bottleneck in leveraging emerging Free Trade Agreements. Looking ahead, the sector is shifting its focus toward the Rs 5,659-crore ‘Mission for Cotton Productivity,’ which aims to address yield disparities - where India’s output currently trails global averages - to reduce reliance on periodic import interventions. As manufacturers calibrate their procurement strategies before the October deadline, the focus remains on integrating high-quality, globally sourced fiber into value-added apparel lines to capture higher margins in the international market.

Maintaining a competitive global standing

India’s textile industry is a cornerstone of the national economy, supporting millions of rural livelihoods through fibre-to-fashion integration. Key segments include cotton yarn, woven fabrics, and technical textiles for global markets. Growth plans emphasize sustainable manufacturing, yield-boosting technological interventions, and export diversification to maintain long-term competitive global standing.

Recent trade data highlights a widening performance gap between India’s textile and apparel sectors. While textile exports, encompassing yarn, fabric, and made-ups, demonstrated a robust 9.64 per cent Y-o-Y growth during June 2026, this progress was offset by a significant 11.25 per cent contraction in RMG shipments.

According to the Confederation of Indian Textile Industry (CITI), this disparity resulted in cumulative textile and apparel (T&A) exports remaining nearly flat, recording a marginal uptick of only 0.21 per cent for the month. This trend has persisted throughout the Q1, FY26 during which apparel shipments faced a 12.44 per cent decline, dragging the overall T&A export growth into negative territory by 2.95 per cent.

Strategic barriers and market outlook

Industry analysts attribute this apparel-led stagnation to persistent global demand volatility and the growing necessity for India to move up the value chain. While manufacturers of technical textiles and high-performance synthetic yarns are benefiting from diversified global sourcing strategies, the garmenting sector continues to grapple with competitive pricing pressures.

Addressing this imbalance is a primary focus at Bharat Tex 2026, where stakeholders are exploring avenues to deepen vertical integration. By aligning domestic production with the sustainability and compliance requirements of Western retail markets, the sector aims to transition from volume-driven exports to high-value-added solutions, essential for regaining momentum in the international marketplace.

Prioritizing export-led growth

The Indian textile sector is a cornerstone of the national economy, encompassing the entire value chain from fiber to fashion. Key markets include the US, EU, and UK, with an increasing focus on technical textiles. The industry is currently prioritizing export-led growth, digital transformation, and sustainable manufacturing to boost long-term competitiveness.

H&M Group is aggressively refining its global retail footprint, reporting a net reduction of 128 stores as of May 2026 as part of a multi-year organizational restructuring. While the fashion giant continues to shutter underperforming locations, the strategy is focused on enhancing store-level productivity and prioritizing digital-first omnichannel integration. According to the company’s recent six-month report, this portfolio optimization has yielded a significant 160-basis-point expansion in operating margin, reaching 12 per cent in Q2, FY26.

The retailer’s shift emphasizes ‘in-season’ sourcing flexibility, allowing it to respond rapidly to shifting consumer trends without the burden of excess inventory. Data indicates a 10 per cent reduction in stock-in-trade, a testament to improved supply chain precision. Daniel Ervér, CEO, H&M, emphasizes, the organizational transition seeks to move decision-making closer to the customer, thereby increasing local relevance.

By reallocating capital toward high-potential markets - such as recent expansions in Latin America - and upgrading digital infrastructure, the group aims to balance its physical contraction with qualitative growth. This recalibration is essential for competing against ultra-low-cost digital entrants while maintaining the company’s commitment to sustainable, high-value apparel production in an increasingly volatile global macroeconomic climate.

A Swedish multinational clothing company, the H&M Group operates a global retail network across multiple brands, including H&M, COS, and Arket. Its core business is fast fashion, focusing on design-led apparel and home textiles. The group is currently streamlining its physical footprint while scaling omnichannel and sustainable sourcing capabilities.