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The European Commission has released its first Working Plan under the Ecodesign for Sustainable Products Regulation (ESPR), and textiles and apparel have been identified as the top priority. This initiative signals a major shift towards integrating sustainability into the textile industry, driven by the sector's significant environmental impact and market size.
The ESPR provides the legal framework for setting ecodesign requirements, aiming to promote more sustainable products across the EU market. The focus on textiles is part of a broader effort to meet the EU's climate, environmental, and energy efficiency objectives. “The ESPR is a key contribution to the Clean Industrial Deal's ambition to make the EU the world leader on circular economy by 2030,” the European Commission stated, emphasizing the regulation's role in fostering a circular economy.
Key changes and specifications for the textile industry
Textiles constitute a significant market in the EU, with substantial potential for environmental improvement. The EU market for textiles & apparel is €78 billion. Due to its vast size it has numerous potential for improvement in the product lifetime extension, material efficiency and to reduce their impact on water, waste generation, climate change and energy consumption.
The ESPR will bring about several changes for the textile and apparel industry, with specific requirements and timelines outlined in the working plan. The prioritization of textiles followed extensive consultations with stakeholders, including member states, industry representatives, academics, NGOs, and international partners. The final working plan was shaped by feedback from a public consultation in 2023 and discussions at the Ecodesign Forum in February 2025.
Table: ESPR timeframe for textile and apparel industry
|
Requirement |
Description |
Timeline |
|
Durability & Repairability |
Textiles must be designed to be more durable and easily repairable to extend product lifespan and reduce waste. |
2027 |
|
Material Efficiency & Recycled Content |
Regulations will mandate efficient use of materials and minimum percentages of recycled content in textile products. |
2027 |
|
Digital Product Passport |
A digital system to track environmental and material data across the supply chain, enhancing transparency. |
2027 |
|
Alignment with Textile Labelling Regulation |
Ensuring coherence with the revised Textile Labelling Regulation to provide clear consumer information. |
2027 |
Compliance and regulations
The textile industry will need to comply with a set of new regulations under the ESPR, aimed at fostering sustainability and reducing environmental impact. While the new regulations present challenges, they also offer opportunities for the textile industry to lead in circular design, transparency, and product traceability. Companies that embrace these changes can increase their competitiveness and meet the growing demand for sustainable products.
Highlighting the benefits of harmonized standard the European Commission points out, “Stakeholders support this initiative because it reduces compliance costs, simplifies the system and enables producers and consumers to benefit from the economies of scale that a market with 450 million consumers provide.”
Thus the prioritization of textiles under the ESPR marks a critical step towards a more sustainable future for the industry. By focusing on durability, material efficiency, and transparency, the EU is driving the textile sector towards greater environmental responsibility and circularity.
Thika Cloth Mills has launched a Sh1.2 billion project to establish a cotton ginning and oil extraction factory in Lamu County.
Launched in collaboration with the Kenyan government, this initiative is expected to generate 300 direct and indirect jobs.
The factory will have the capacity to process up to 20 million kg of cotton annually, sourced from local farmers through structured contract farming arrangements.
Emphasizing on the significance of the project, Lee Kinyanjui, Trade Cabinet Secretary stated, , More than just a factory; this project is a bold signal of Kenya's industrial future. He envisioned Lamu becoming a model for county-based industrial transformation, revitalizing local production, creating jobs, and strengthening domestic value chains.
The Kenya Development Corporation (KDC) will provide support to facilitate access to long-term and working capital for the project, as well as assist in the purchase of machinery through the Exim Bank of India.
Abubakar Hassan, Principal Secretary-Investment Promotion highlighted the benefits for cotton farmers and cooperative societies in the coastal region, including structured markets, stable incomes, and strengthened cooperative economies.
Cotton is cultivated in various semi-arid regions across Kenya, including parts of the former Eastern, Central, Nyanza, Coast, Western, and Rift Valley provinces.
Benjamin Muketha, Director, KDC emphasized the broader economic impact of the factory, stating that it will produce not just garments or oil but an economic opportunity. The processing of cotton yields lint (40 per cent) and seed (60 per cent), with the seed further processed into oil for human consumption and seedcake for animal feed.
India’s key textile-producing states, Gujarat and Maharashtra, are grappling with an acute labor shortage, disrupting fabric and garment production across the region. Being highly labor-intensive, these sectors have been particularly hard hit by the reduced workforce. Gujarat’s well-known textile hub, Surat, has witnessed up to a 50 per cent decline in textile factory output. However, weak retail demand may prevent price hikes despite slower textile supply.
Surat is renowned for its weaving, processing, and garmenting activities—all of which rely heavily on manual labour. A large portion of the workforce hails from Uttar Pradesh and Bihar and typically returns to their native villages during summer for one to two months. These workers are not permanently employed but are paid based on output, making their absence financially consequential for them, yet beyond the control of factory owners. Many leave to engage in agricultural work or assist with harvesting, where they often earn higher seasonal wages.
Ashish Gujarati, Former President, Southern Gujarat Chamber of Commerce & Industry (SGCCI), says factories are compelled to reduce production by up to 50 per cent as the textile industry faces a labor crunch. It is estimated that around half of the workforce has gone on leave to their native states. Workers are expected to return after the first rains, likely in the second half of June. He adds, power looms and auto looms are facing the most severe worker shortages. Textile processing and garmenting are also affected.
The textile industry is facing similar challenges in other parts of Gujarat and Maharashtra. Bharat Shah, a power loom owner in Ichalkaranji (Maharashtra), states, power looms have had to cut fabric production as the number of workers has dropped in the past two to three weeks. Labour shortage has become an annual issue as industries are increasingly dependent on workers from UP and Bihar. These workers typically return by the end of June when the rainy season starts.
Labor shortages have dented textile factory production, but a sudden drop in supply or spike in fabric prices is unlikely. There are clear signs of consistent supply and stable prices, unless there is an unexpected surge in demand for end products like garments and other finished goods. Shah explained that this is an annual labour migration, and factory owners have already planned production accordingly. Wholesalers have also built up adequate stock for the summer months.
More importantly, the current demand for textiles and garments is steady to slow, which is not conducive to price increases.
Gujarati further notes, a short supply is unlikely during the summer months unless there is a sudden rise in demand. The present level of demand has already been factored in by manufacturers. This steady to slow demand will not cause a shortage of supply. However, occasional short supply of specific textile varieties may be experienced during this period of slow production.
K M Subramanian, President, Tiruppur Exporters’ Association, avers. garment manufacturing units in the Tiruppur region are also facing a labour shortage. There is a shortage of around 40,000 workers in the region. Workers are getting better jobs in other sectors including IT sector, which is the main reason for the labour shortage. Growing IT and other sectors need non-technical workers for supporting and ancillary services. Garment production activities are being affected by this problem.
However, another industry expert said that the region is not facing a seasonal labour shortage, as workers in the region typically return to their native places in Uttar Pradesh and Bihar before the Holi festival. They are now coming back to the factories.
Marilina Armellin, Italian Ambassador to Pakistan, reaffirmed Italy's long-standing support for Pakistan's textile sector, calling it crucial for the nation's economic growth and export performance. She highlighted Italy's role as a reliable partner in Pakistan's textile development for decades, offering advanced machinery and technology across the entire production chain.
During a visit to Business Recorder's Karachi headquarters, Ambassador Armellin emphasized on the need for stronger trade cooperation. She stated,, Italy is committed to strengthening this important partnership by facilitating access to the latest textile technologies and machinery to help Pakistan boost its economic activitie. However, she urged Pakistan to lower import tariffs on textile machinery to make advanced equipment more accessible. This would help modernize the industry and significantly contribute to Pakistan's GDP, she opined
Emphasizing on the the importance of IGATEX Pakistan 2025 in Karachi, Armellin noted, IGATEX is a very important exhibition—not just for Pakistan but for the entire region, she stated, adding that Italian companies see strong potential in the Pakistani market.
Highlighting broader economic ties, Armellin pointed out, the €1.5 billion trade balance and the potential for growth. Italy exports machinery for various sectors, including textile, leather, and agriculture, while Pakistan exports textile and leather products, and food items. She encouraged Pakistani businesses to participate in major Italian and European trade fairs to explore new markets.
A leading cybersecurity and cloud computing company focused on securing and enhancing online business, Akamai Technologies, Inc has launched a new T-shirt design as part of Uniqlo's charitable T-shirt initiative, the Peace For All collection, Following the overwhelming success of their previous collaboration within the Peace For All project, UNIQLO was inspired to partner with Akamai once again to create a brand-new design.
The design of the new T-shirt pays homage to the early days of the internet, a period in which Akamai played a pivotal role in shaping the online world we know today. The T-shirt features a light tan color, reminiscent of the ‘beige box’ plastic casings of early internet computers. A heart graphic on the front symbolizes the positive impact the internet has had globally. The back of the shirt showcases actual code, a reference to Linux, the open-source language that underpins much of the internet. This shared language connects Akamai with leading global brands and their users as they collectively strive for a more secure and interconnected world.
Kim Salem-Jackson, Executive Vice President and Chief Marketing Officer, Akamai, says, the company’s mission to power and protect life online drives it to contribute to a safer, more connected world Through this project, the company shares a message of peace, expressed through the universal medium of fashion.
The National Council of Textile Organizations (NCTO) and key industry leaders have welcomed former President Donald Trump’s executive order ending the de minimis provision for Chinese imports, effective May 2. The order targets a long-standing loophole that allowed low-value shipments often from Chinese e-commerce platforms to enter the US duty-free and largely unregulated.
Kim Glas, President and CEO of the NCTO, praised the move as a vital measure to protect US manufacturers. “We are grateful to President Trump for closing this destructive loophole that has allowed illegal and unsafe goods, including those made with forced labor, to flood our market,” she said. Glas emphasized that the policy had led to the closure of 28 textile mills over the past 22 months and urged Congress to expand the ban to all countries to prevent circumvention.
Anderson Warlick, Chairman and CEO of Parkdale Mills, echoed the sentiment, highlighting the economic and human toll. “About half of all de minimis shipments include textile or apparel products. These undercut our industry while facilitating the entry of harmful goods, including those made with forced labor,” he said, urging broader action.
Amy Bircher Bruyn, CEO of MMI Textiles, described the loophole as a serious threat to national security and American jobs. Her company, which supports dozens of workers directly and hundreds indirectly, supplies critical materials for US military and law enforcement. “During Covid-19, we rapidly pivoted to supply PPE. Yet, we’ve been undermined by massive volumes of fast fashion imports entering duty-free,” she noted.
Ron Sytz, CEO of Beverly Knits, called the move ‘a lifeline’ for domestic manufacturers. His North Carolina-based business, operating for over four decades, was forced to lay off 175 workers due to unfair competition from de minimis imports. “We’re grateful for this action. It finally gives us a fighting chance to reinvest, grow, and hire again,” he said.
Industry leaders now call on the administration and Congress to eliminate the de minimis exemption for all countries, warning that China could reroute goods through third nations to evade the new restriction.
The US textile industry, employing nearly half a million workers, sees this move as a critical first step in restoring fair trade and revitalizing domestic manufacturing.
Leading textile company, Sportking India’s Q4, FY25 net profit increased by 58 per cent to Rs 360 million ($4.3 million), as against Rs 230 million in the same quarter last year.
The company registered a 3 per cent rise in revenue to Rs 6.29 billion during the quarter, compared to Rs 6.11 billion in the corresponding quarter of the previous fiscal year.
For full FY24, the company reported revenues worth Rs 25.24 billion with a net profit of Rs 1.09 billion.
According to Munish Avasthi, Chairman and Managing Director, the company’s Q4 performance continued the strong trajectory established in the earlier quarters, with strong export revenue growth and margin expansion due to softer input costs contributing to a 58 per cent Y-o-Y increase in profit after tax.”
Supported by healthy demand trends and stable input costs, domestic operating environment continues to be favorable, helping the company maintain yarn spread levels. Combined with its strength in efficient manufacturing, prudent resource management, and a steadfast commitment to quality, this enables the company to sustain its growth momentum into the next financial year, he adds.
Founded in 1989, Sportking owns three manufacturing facilities in India equipped to produce a diversified range of textiles to cater to the demands of the weaving and knitting industry.
Puma plans to relocate its UK headquarters from London to Manchester. The sportswear company has committed to a 20,000 sq ft office space at Circle Square complex, the Oxford Road Corridor development.
This move aligns with the brand’s preparations to establish its first-ever European flagship store on Oxford Street this fall. The 24,000-sq-ft store will offer an immersive, interactive experience by blending streetwear styles with technology and sports performance.
The new headquarters is already home to a growing community of retail tech and digital-first businesses, making it a strategic step in its ongoing transformation and a future-facing base for Puma’s UK operations.
Liz Hershfield, a veteran in fashion and sustainability, has been appointed Executive Director of Cotton Council International (CCI), the export promotion arm of the National Cotton Council of America (NCC). She succeeds Bruce Atherley, who retired in March.
Bringing decades of expertise in global sourcing, product development, and end-to-end supply chain strategy, Hershfield is expected to bolster CCI’s mission through its flagship Cotton USA brand. “Strong leadership and innovative strategies are essential to maintaining US cotton's competitive edge,” said NCC President & CEO Gary Adams. “Liz is well poised to elevate Cotton USA programs and expand opportunities for US cotton growers.”
Hershfield emphasized the importance of US cotton’s story, which she says is deeply rooted in quality, innovation, and a commitment to sustainability. “There’s never been a more important time to champion US cotton,” she noted, pledging to strengthen its global presence.
Her extensive career includes leadership roles at J Crew, Madewell, and Gap Inc, as well as founding Green-ish, a consultancy that helps brands navigate environmental, social, and governance (ESG) challenges. Recognized for her leadership in sustainable fashion, Hershfield received the Textile Exchange Ryan Young Climate+ Award for her work on a regenerative cotton initiative and was named to both The Lead's "The Direct 60" and the Rivet 50 Index.
In her new role, Hershfield aims to drive global demand and preference for US cotton by highlighting “The Cotton USA Difference” a blend of premium quality and trusted partnerships across the global textile supply chain.
While Tamil Nadu continues its reign as the top textile exporting state in India, a deeper dive into the data reveals a nuanced perspective on its leadership across various textile and apparel (T&A) export sectors. Despite holding a significant overall share, the state's dominance in all categories necessitates a closer examination.
State-wise breakdown of textile exports
In the fiscal year 2024-25, Tamil Nadu contributed $7.99 billion to India's total textile exports of $36.61 billion, capturing 26.81 per cent of the market. The breakdown by export category highlights its strength in readymade garments, cotton yarn/fabrics/made-ups & handloom products, and man-made yarns/fabrics/made-ups.
Readymade garments: Tamil Nadu leads with an estimated contribution of approximately $4.28 billion.
Cotton yarn/fabrics/made-ups & handloom products: Contributes about $2.90 billion.
Man-made yarns/fabrics/made-ups: With an estimated share of around $0.58 billion.
Comparatively, Gujarat, Maharashtra, Karnataka, and Uttar Pradesh also play significant roles in specific export categories, reflecting their unique strengths in cotton processing, synthetic textiles, and powerloom sectors.
The role of integrated ecosystems in export success
Tamil Nadu's textile export success is often attributed to its well-integrated ecosystem spanning from yarn production to garment manufacturing. This integrated approach offers several advantages crucial for export competitiveness. For example, proximity of production stages minimizes transportation time. Similarly, local sourcing and in-house processing reduces operational costs. Increase, oversight ensures high-quality products. Moreover, agility in adapting to market demands and trends.
Tiruppur, the knitwear capital
Tiruppur exemplifies the benefits of such integration. Known as India's 'Knitwear capital,' it hosts spinning mills, knitting units, dyeing facilities, and garment manufacturers in close proximity. This clustering facilitates efficient production and makes Tiruppur a preferred hub for global knitwear buyers. As A Sakthivel from FIEO emphasizes, the integrated nature of Tamil Nadu's textile industry, especially in clusters like Tiruppur, gives the state a significant advantage in meeting global apparel demands.
Beyond integration, factors influencing apparel exports
However, relying solely on integration may oversimplify the complexities of global markets:
- Market access and trade agreements: Crucial for competitive positioning.
- Design and innovation: Essential for consumer appeal and market differentiation.
- Branding and marketing: Critical for enhancing value realization.
- Logistics and infrastructure: Ensures timely delivery and customer satisfaction.
- Policy environment: Shapes export competitiveness through regulatory frameworks.
- Sustainability: Increasingly important for ethical consumerism and regulatory compliance.
For example, Bhiwandi in Maharashtra is a major powerloom center producing a large volume of fabrics. However, the apparel manufacturing sector in the region is not as integrated. While it produces fabric, a significant portion is sent to other centers for garmenting. Despite being a large fabric producer, Bhiwandi's direct apparel exports might not be as high as regions with more integrated units. This suggests that simply having fabric production capabilities doesn't automatically translate to high apparel exports without a strong garmenting ecosystem and focus.
Thus while Tamil Nadu leads India's textile exports overall, its leadership across all sectors requires deeper understanding. An integrated ecosystem provides a strong foundation but must be complemented by initiatives in design, branding, market access, and sustainability. The textile landscape continues to evolve, requiring adaptable strategies to maintain and increase global competitiveness. Tamil Nadu's textile export leadership is a testament to its integrated capabilities, yet ongoing innovation and alignment with global trends are essential for sustained growth in the dynamic T&A market.
