FW
Pakistan's textile and apparel sector, faces a critical juncture as the European Union (EU) scrutinizes its commitment to human rights and governance under the Generalised Scheme of Preferences Plus (GSP+). Recent statements from EU officials, while acknowledging Pakistan's progress and its status as the largest GSP+ beneficiary, also carry a stark warning: continued trade benefits hinge on demonstrable progress on human rights and other key areas. This uncertainty casts a long shadow over the sector, raising concerns about potential economic fallout should the preferential trade access be revoked.
The stakes are high
GSP+ provides significant advantages to Pakistan's exports, particularly in the textile and garment sector. Zero-rated or preferential tariffs on nearly 66 per cent of tariff lines have led to a substantial increase in exports to the EU market. Between 2014 and 2022, Pakistan's exports to the EU rouse by 108 per cent, reaching €14.85 billion, with textiles playing a dominant role. The sector contributes significantly to Pakistan's GDP, employs millions of workers, and is a crucial source of foreign exchange. Withdrawal of GSP+ would not only impact export volumes but also reverberate throughout the entire value chain, affecting employment, investment, and overall economic stability.
The EU's concerns
While the EU acknowledges Pakistan's economic significance and its positive trajectory in some areas, the emphasis on human rights and rule of law remains paramount. The EU's concerns, though not explicitly detailed in recent statements, are around freedom of speech, rights of minorities, labor rights, and the implementation of international conventions related to these areas. Ambassador Skoog's statement underscores the need for "tangible reforms" and continued progress on these issues as Pakistan prepares for reapplication under the new GSP+ regulation.
What's at stake
For Pakistan a lot is at stake primarily it could lead to economic losses as reduced export earnings, job losses, decreased investment, will have negative impact on GDP. Withdrawal of GSP+ would also signal concerns about Pakistan's commitment to human rights and governance, potentially affecting foreign investment and international relations. What’s more, Pakistan's textile sector would lose its competitive edge in the EU market, potentially losing market share to other exporting nations.
Therefore, Pakistan needs a multi-pronged approach to address the EU's concerns and secure continued GSP+ status. First it needs to focus on diplomatic engagement or proactive and transparent dialogue with the EU to understand specific concerns and demonstrate progress on reforms. It als needs to take concrete actions, tangible improvements in human rights, labor rights, and governance, supported by legislative and administrative measures is the need of the hour. And close collaboration between government, industry, and civil society is needed to address the challenges and ensure compliance with international standards.
The future of Pakistan's textile sector is inextricably linked to its GSP+ status. A concerted effort to address the EU's concerns is crucial to safeguard this vital sector and ensure its continued growth and contribution to the national economy. Failure to do so could have significant and lasting consequences.
The Cotton Corporation of India (CCI) is urging farmers not to sell their cotton at low prices, assuring them that it will purchase all fair-grade cotton brought to its designated yards. This assurance comes as cotton prices hover around the Minimum Support Price (MSP).
Trade sources indicate that the CCI is handling upto 80 per cent of the cotton purchases with traders buying smaller lots. The Corporation has procured 8.6 million bales of cotton across India this season, informs LK Gupta, Chairman and Managing Director, CCI. This is significantly more than the 3,284 million bales procured during the entire last season, he adds.
The farmer’s MSP has been increased by 7.5 per cent. While lint cotton prices are at or below last year's levels, seed cotton prices have increased by 7.5 per cent compared to last year. This increase in MSP has increased the corporation’s role in supporting the country’s cotton farmers, avers Gupta.
Emphasizing on the CCI's commitment to continuous procurement, Gupta notes, any temporary suspensions in certain areas due to space constraints are typically resolved within a few days. All procurement centers across the country are expected to function normally by this weekend, he adds.
Some temporary gaps in procurement occurred in areas like Maharashtra, where a few factories closed briefly in late January due to high arrivals. However, Gupta describes this as a routine occurrence. As of last week, the CCI had purchased 3.85 million bales in Maharashtra
A new study by the University of Nottingham’s Rights Lab and GoodWeave International reveals the ongoing risks of modern slavery and child labor in Bangladesh’s garment supply chain. The report highlights exploitation in hidden, subcontracted factories and provides recommendations for stakeholders to protect workers and children.
Bangladesh’s ready-made garment (RMG) sector employs over four million people, mostly women, and exports 80 per cent of its products to Europe and the US. While labor conditions in export factories have improved since the 2013 Rana Plaza disaster, exploitation in subcontracted production remains largely undocumented.
With funding from UK International Development, researchers surveyed over 2,000 workers, including minors, across 20 industrial clusters in Dhaka and Chattogram. Findings reveal that child labor persists, particularly in subcontracted factories, with all minors interviewed being illegally employed. The study also found that 32 per cent of adult workers earn below the minimum wage, and 7 per cent live under the international poverty line. Nearly one-third of factory workers exceed legal overtime limits, and female workers earn significantly less than men. Additionally, 56 per cent of surveyed workers reported experiencing threats or abuse, with women and minors being the most affected.
The report urges the Bangladeshi government, global brands, suppliers, and labor organizations to enhance supply chain transparency, enforce due diligence, ensure fair wages, and implement stronger protections against child and forced labor. It calls for establishing effective grievance mechanisms to safeguard worker rights.
The Rights Lab and GoodWeave will hold a series of events to discuss the findings, starting with a virtual session at the 2025 OECD Forum on Due Diligence in the Garment and Footwear Sector on February 10.
Flagship company of the LNJ Bhilwara Group, RSWM will blend traditional wisdom with modern technology with its showcase of ‘Panchtatva’ inspired textile innovations at Bharat Tex 2025.
RSWM's ‘Panchtatva’ initiative embodies Prime Minister Narendra Modi's ‘Mission LiFE,’ a people-to-planet approach. It highlights mindful textile innovation and a commitment to a sustainable future, reflecting India' s heritage of harmony with nature while focusing on future-ready products that meet evolving lifestyle needs. RSWM will exhibit at Booth B6, Hall No.1 and C,17, Hall No.6 at Bharat Mandapam, New Delhi, from February 14-17, 2025.
RSWM's ‘Panchtatva’-inspired products embody the five natural elements, combining protection, comfort, and innovation. Harnessing the power of fire, RSWM offers fire-retardant, UV-resistant, and heat-protective textiles with advanced thermoregulating technology. Drawing on the stability of earth, RSWM creates durable, sustainable products using organic cotton, hemp, jute, and biodegradable polyester. Reflecting water's fluidity, the textiles offer moisture-wicking, quick-drying, and water-repellent properties. Inspired by air's lightness, the collection includes breathable, anti-odor yarns, mesh knits, and lightweight denim. Finally, embracing the vastness of space, RSWM engineers future-ready textiles with high-tech fibers, graphene-enhanced fabrics, and adaptive materials, underscoring its commitment to sustainability and technological advancement.
Riju Jhunjhunwala, Chairman & Managing Director, RSWM, states, deeply rooted in a tradition that values both legacy and harmony with nature, the company’s ‘Panchtatva'-inspired innovations embody these elements, balancing tradition and sustainability. At Bharat Tex 2025, the company celebrates not just textiles, but the timeless connection between nature, culture, and craftsmanship."
Rajeev Gupta, CEO, RSWM, adds, Bharat Tex 2025 provides RSWM with a platform to showcase India’s leadership in sustainable textile solutions. Through the 'Panchtatva' initiative, the company blends ancient wisdom and modern innovation to create eco-conscious, functional, and globally competitive textiles. This aligns with the Prime Minister's vision for the industry as we build a responsible, future-ready textile ecosystem.
Guided by the ‘Panchtatva’ philosophy, RSWM’s sustainability initiatives are integrated across its operations. The company replaces coal-based boilers to use biofuels. Embracing earth's stability, it minimizes environmental footprint through tree planting, organic manure use, and recycled/organic fibers. Respecting water, its Zero Liquid Discharge system and water-saving measures conserve over 1.3 million kiloliters annually. Protecting air quality, RSWM reduces CO2 emissions by 800,000 metric tons yearly. Finally, inspired by space, the company generates 76.5 million kilowatts of renewable energy through solar and wind power.
Valued at $29 billion in FY2024, India's technical textiles market is poised for significant expansion, per the latest report by leading provider of risk management and monitoring services, Rubix Data Sciences.
As per this report, this growth is fueled by Budget 2025's increase in Basic Customs Duty (BCD) on knitted fabrics and tax breaks for textile machinery. The report highlights the high growth expected in key segments like packtech, mobiltech, meditech, and agrotech due to increased investment and demand for high-performance fabrics.
Cutting-edge advancements, including energy-harvesting fabrics, PCM-based adaptive clothing, and smart e-textiles for sports and fitness, are shaping the future of this industry. Government initiatives such as the PLI scheme, PM MITRA parks, and quality control mandates are also playing a critical role in positioning India as a global leader in advanced textiles.
More than just durability, technical textiles are about intelligence, adaptability and sustainability, says Mohan Ramaswamy, Co-founder and CEO, Rubix Data Sciences. Budget 2025 has given the sector an added push towards sustainable innovation, automation, and smart materials. The industry’s landscape is evolving rapidly, be it in term of self-cleaning fabrics, military-grade protective gear, or biodegradable packaging. Businesses capitalizing on these advancements now will remain ahead of the curve, he adds.
As India strengthens its manufacturing base and expands its global trade footprint, Rubix Data Sciences continues to provide data-driven intelligence to help businesses navigate this industry shift. With global demand for high-performance fabrics on the rise, the Indian market presents significant opportunities for investment, exports, and innovation.
Monforts has installed the Baldwin TexCoat G4 digital spray unit at its Advanced Technology Center (ATC) in Monchengladbach, Germany, for customer trials. Integrated into one of the Montex stenter lines, the unit applies water-based chemicals such as softeners, antimicrobials, and flame retardants precisely to textiles.
When combined with Montex stenters, it can reduce water, chemistry, and energy consumption by up to 50 per cent compared to traditional pad application methods.
Monforts is supporting textile manufacturers in enhancing product quality while maximizing resource utilization. The ATC features two Montex stenter finishing lines, a Thermex range for continuous dyeing, and lab-scale systems for smaller trials, allowing customers to test fabrics under real production conditions.
Rick Stanford, VP of Global Business Development at BW Converting, notes the growing interest in the TexCoat G4, with several manufacturers eager to use the system. “This collaboration with Archroma and Baldwin is accelerating change in the industry, lowering resource consumption while improving productivity and quality,” he says.
Michael Schuhmann from Archroma highlights how this partnership will lead to further advancements in chemical functionalization and coloration, offering textile mills clear proof of efficiency under real-world conditions.
Salvatore Ferragamo CEO Marco Gobbetti, former Burberry chief, will step down on March 6 after three years, failing to revive sales at the luxury brand. Chairman Leonardo Ferragamo will assume executive duties until a successor is found.
Gobbetti, who joined in 2022, aimed to modernize Ferragamo but faced challenges amid slowing global luxury demand, particularly in Asia. The brand reported an 8.2 per cent revenue drop in 2024, with Asian sales plunging 19 per cent.
Gobbetti will receive a €4.5 million exit package after waiving his 2024 bonus. Ferragamo’s advisory committee, including former CEO Michele Norsa, will assist in leadership transition.
The family, which owns 54.3 per cent of the company, has repeatedly dismissed sale rumors despite years of struggles. Ferragamo’s stock has fallen two-thirds since Gobbetti took over.
The global textile industry faces a growing dilemma: how to reduce its heavy reliance on fossil-based synthetic fibres, which dominate the market. Between 1960 and 2023, textile fibre demand surged by 650 per cent, with synthetic fibres increasing from 3 per cent of the market to 68 per cent. While synthetic fibres revolutionized production, lowering costs and introducing new properties, they come with serious sustainability concerns, particularly the rising carbon footprint and the microplastic crisis.
One solution lies in renewable carbon sources, especially biomass, carbon dioxide, and recycling, which reduce dependence on fossil fuels. However, the shift is complex. Cotton production remains limited by factors like irrigation and pesticide use, while bast fibres such as jute and hemp could play a larger role but face high processing costs.
Despite these challenges, man-made cellulosic fibres (MMCFs), like viscose and lyocell, have shown significant growth, with their production expected to rise to 11 million tonnes by 2030. These fibres, derived from wood or agricultural waste, are bio-based and biodegradable, offering a promising alternative for the industry’s future.
Additionally, the rise of biosynthetics bio-based synthetic fibres like PLA and PTT offers another avenue, though their current market share is still below 0.5 per cent. The development of carbon dioxide-based fibres holds potential but is still in its infancy.
Circular economy principles, particularly fibre-to-fibre recycling, are essential for the sustainable textile future. The recycling rate of textiles remains low, but advances are being made to improve collection, processing, and the scalability of recycling technologies. The future of textiles will rely on a blend of cotton, cellulose fibres, biosynthetics, and robust recycling systems to reduce reliance on fossil-based materials, with the goal of replacing most synthetic fibres by 2050.
Gucci has announced the departure of Creative Director Sabato De Sarno. His final contribution will be the Fall-Winter 2025 show in Milan on February 25, which will be presented by the Gucci design office. The luxury house will reveal its new Artistic Direction in due course.
Gucci CEO Stefano Cantino expressed gratitude for De Sarno’s dedication, highlighting his respect for the brand’s craftsmanship and heritage. Francesca Bellettini, Kering’s Deputy CEO for Brand Development, also thanked De Sarno for his professionalism, emphasizing the progress made in strengthening Gucci’s foundations. She affirmed that Cantino and the upcoming Artistic Direction will continue driving the brand’s fashion leadership and sustainable growth.
De Sarno joined Gucci in 2023, introducing a minimalist aesthetic after the departure of Alessandro Michele. His exit marks another leadership change at the iconic fashion house as it navigates evolving industry trends.
Metamorphosis project strengthens digital transformation
Turkey’s apparel industry has taken a significant step forward with the completion of the “From Design to Production: Digital Transformation in the Apparel Industry (metamorphosis)” project, led by the Istanbul Apparel Exporters Association (IHKIB) under the EU’s Instrument for Pre-Accession Assistance (IPA-2) program.
Speaking at the closing event, Mustafa Paşahan emphasized the industry’s resilience despite cyclical challenges. “We take a long-term perspective. Apparel will remain crucial for the Turkish economy for years to come. With this awareness, we are building an infrastructure that strengthens our position in global trade,” he said.
The project secured €10.4 million in EU funding and focused on analyzing the apparel and textile sectors, developing a Digital Transformation Roadmap, and training SMEs. More than 100 SMEs benefited from digital transformation and social compliance consultancy services, while 125 SME representatives received Digital Fashion Design Training. Additionally, 60 companies underwent a Digital Maturity Assessment to enhance operational efficiency.
Investment in green and branded production
Highlighting the need for value-added production, Paşahan stated, “The price-focused competition model is fading. Instead, we must focus on design, innovation, and branding.” Turkey’s apparel brands already have over 3,000 stores across 100 countries. However, he stressed that digital and green transformation often referred to as the twin transition—will shape the sector’s future.
The European Union’s total grant support for Turkey’s textile and apparel sector has now reached €37 million, contributing to digitalization, sustainability, and brand development. Among upcoming initiatives, a ‘Carbon Footprint Monitoring and Reduction’ project will be launched to align with the EU Green Deal. IHKIB has also secured funding under the European Digital Innovation Hubs Program, further supporting technological advancements in the industry.
Turkey’s competitive sectors program utilizes €500 million in EU funds
Deputy Minister of Industry and Technology Zekeriya Coştu highlighted Turkey’s long-standing collaboration with the EU under the IPA framework. “Since 2007, we have utilized IPA funds to enhance institutional and commercial capacities. In the first phase of the Competitive Sectors Program, we allocated €500 million-€400 million from the EU and €100 million from our national budget to 46 projects focused on regional development,” he said.
The ongoing IPA-2 phase, with a budget of €260 million, supports R&D, digital transformation, and green initiatives across 23 provinces. “Our goal is to create a more technology-driven, efficient, and competitive ecosystem,” Coştu stated. “The Metamorphosis project, a key part of this initiative, will enhance SMEs’ compliance with international standards and promote environmentally friendly production.”
Jurgis Vilcinskas, Deputy Head of the EU Delegation to Turkey, reaffirmed the EU’s commitment to supporting Turkey’s textile and apparel transformation. “Since 2007, the EU has invested €780 million to enhance Turkey’s industrial competitiveness and innovation. Our collaboration with IHKIB continues to evolve, fostering digitalization and sustainability in the sector,” he said. This partnership underscores the importance of Turkey-EU cooperation in shaping a greener and more innovative future for the apparel industry.
