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India eyes zero duty deal with US amid tariff tensions textile sector poised for pivotal role

 

In a strategic move to mitigate the impact of the US’ recent 26 per cent reciprocal tariff, India is considering offering zero-duty imports across several sectors, including those under the Production Linked Incentive (PLI) scheme, to expedite a crucial bilateral trade agreement (BTA). Officials familiar with the development indicate that this bold initiative aims to significantly boost bilateral trade, targeting a staggering $500 billion by 2030, while also addressing the immediate concerns arising from the US tariffs.

The Indian government's proposal, though generous, comes with stringent conditions, emphasizing rules of origin that mandate 30-40 per cent value addition and a change in tariff heading. These measures are designed to prevent the influx of third-country goods through the US, ensuring genuine value creation within the Indian manufacturing ecosystem. "Inter-ministerial consultations are actively exploring all potential avenues within the BTA, with a strong focus on the mutual benefits of zero-for-zero tariffs," revealed a source close to the discussions.

Textile and apparel sector, a key contributor

The textile and apparel sector, a significant component of the PLI scheme, is expected to play a crucial role in this trade realignment. With its inherent labor cost advantages, India is well-positioned to leverage zero-duty access to the US market. The sector's inclusion in the PLI scheme, with substantial financial outlays, has already boosted its manufacturing capabilities and competitiveness.

PLI scheme’s impact: The PLI scheme for textiles, with an approved outlay of Rs 10,683 crore, aims to enhance India's manufacturing capabilities in man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. This initiative is expected to attract significant investments, boost production, and create numerous employment opportunities.

India-US textile trade: The US is a major importer of Indian textiles and apparel, with potential for substantial growth under favorable tariff conditions. According to India's Ministry of Textiles, The textiles & apparel contribut 12 per cent of India’s exports.

Competitive advantages: India's labor costs in the textile sector are significantly lower than those in the US and many other competing nations, providing a distinct competitive edge. India also has strong domestic raw material availability for cotton based textiles.

Potential impacts of zero-duty access

Most importantly it will increase export volumes to the US, leading to higher revenue and job creation. Also it will increase India’s competitiveness against other textile exporting nations. Investments into the Indian textile sector is expected to increase thereby boosting technological advancements and modernization. An increase in US investment inside the India’s textile market for finished goods can also be expected.

Meanwhile, the imposition of the 26 per cent reciprocal tariff by the US has raised concerns within the Indian export community. The proposed BTA and the offer of zero-duty imports are seen as critical steps to mitigate the impact of these tariffs and foster a more conducive trade environment.

BTA’s success hinges on the effective implementation of stringent rules of origin, ensuring genuine value addition within India. The Indian government must work closely with industry stakeholders to identify sectors where zero-duty access can be mutually beneficial. India must also focus on increasing the production of high quality textiles, as the US market favours them. It should pursue investing into more technical textiles, as that is a growing market.

 

Tiruppur's knitwear exports are projected to increase by 15 per cent in FY25-26. These exports had increased by 20 per cent to $4.8 billion in FY24-25.

KM Subramanian, President, Tiruppur Exporters' Association, states, knitwear exporters in Tiruppur are prioritizing green production by employing Zero Liquid Discharge (ZLD). They are recycling 34.3 million gallons of water daily, with 96 per cent being reused.

The association generates 2,000 MW through wind turbines and 250 MW via solar power. It utilizes 350 MW for the industry, while the remainder is supplied to the Tamil Nadu Electricity Board. Mindful of climate change risks, the association has planted 2.2 million trees with a 90 per cent survival rate. These initiatives have been a key in attracting international buyers from various countries with the association receiving more orders from the US and European countries, he adds.

Furthermore, Subramanian notes, the association anticipates a 15 per cent growth in exports in the current fiscal year. The federal and state governments should also provide support. Tiruppur's infrastructure needs to be improved to align with export growth. It is essential to offer bank loans with straightforward processes, along with subsidies and incentives.

A Sakthivel, Vice-Chairman, Apparel Export Promotion Council (AEPC), remarks, knitwear exports from Tirupur grew by 20 per cent in FY 2024-25. This achievement underscores the sector's sustained momentum and the strong global demand for Indian knitwear and apparel. This growth in knitwear exports is a highly encouraging sign, and this momentum will continue, despite global uncertainties. The association hopes to sustain this upward trend in the years ahead, he adds.

Sakthivel states, maintaining its upward trajectory, India's ready-made garment (RMG) sector registering a 10 per cent growth in exports during FY 2024-25. Total RMG exports in 2024-25 stood at $16 billion, with 49 per cent of exports originating from the knit sector, marking a significant increase from the previous year.

S\ Vijayakumar, an exporter, says, on a growth path for over a year now, Tiruppur's knitwear sector has been receiving large orders in frequently. This benefits large companies the most with some of the major US brands now looking to India instead of China.

However, India receives orders only after its competitors like Bangladesh and Vietnam have full order books. This happens mainly due to the cost difference. Hence, India needs to control its raw material prices, he adds.

 

Spinners face multiple interrelated challenges while selecting and processing yarns for a specific fabric end‑use. Below are the key issues around yarn properties and suitability—and proven strategies to overcome them:

1. Inconsistent yarn fineness (Linear Density)

Challenge: Variations in yarn count (eg: Ne, Tex) lead to uneven fabric hand, weight, and appearance.

Mitigation strategies:

  • Automated monitoring: Implement real‑time laser or capacitive sensors on the drafting frame to detect linear density fluctuations and automatically adjust drafting zones.
  • Controlled blowroom blending: Pre‑blend fibers to a tight specification (±1%) so upstream fiber variations are minimized before spinning.
  • Quality feedback loops: Use post‑spin Uster evenness testing data to recalibrate card and draw‑frame settings.

2. Yarn strength and tenacity

Challenge: Insufficient tensile strength causes breakages during weaving or knitting, harming productivity.

Mitigation strategies:

  • Optimized twist levels: Fine‑tune twist per inch (TPI) based on fiber staple length—higher twist for shorter staples to enhance cohesion, lower for long‑staple cotton to preserve softness.
  • Fiber blending: Introduce small percentages of high‑tenacity fibers (e.g., polyester microfibers) into cotton yarns to boost strength without compromising hand.
  • Process conditioning: Maintain optimal draft humidity (65–70% RH) to increase yarn tenacity and reduce static‑induced breakages.

3. Hairiness and Fiber Fly

Challenge: Excessive hairiness leads to pilling, reduced fabric clarity, and machine dust accumulation.

Mitigation strategies:

  • Antipilling treatments: Apply Sirospun or compact spinning technologies to trap short fiber ends within the yarn core.
  • Enzyme finishing: Use controlled cellulase enzyme treatments post‑fabric formation to trim protruding fibers.
  • Air‑jet cleaning: Integrate air‑jet cleaning modules pre‑finishing to remove loose fiber fly.

4. Yarn imperfections (Thick/Thin Places, Neps)

Challenge: Thick and thin spots or neps show up as visible defects in fabric, impacting aesthetics.

Mitigation strategies:

  • High‑resolution sensors: Deploy Uster Quantum or similar sensors at multiple process stages to detect and auto‑correct slubs and neps.
  • Regular maintenance: Schedule routine cleaning and maintenance of carding flats and comb teeth to prevent fiber entanglement that causes neps.
  • Optical sorting: In high‑value applications, use upstream optical fiber grading to remove immature or defective fibers before spinning.

5. Yarn hairiness vs. smoothness trade‑off

Challenge: While hairiness can create desirable “peach‑skin” effects, too much can ruin fabric drape and performance.

Mitigation strategies:

  • Selective finishes: Balance mechanical (calendering) and chemical (silicone softeners) finishing to achieve target hairiness levels.
  • Hybrid spinning: Combine ring and air‑jet spinning lines to develop core‑sheath structures—smooth sheath for handle, hairy core for bulk and effect.

6. Twist variability and torque

Challenge: Inconsistent twist distribution can impart skew or torque in knit fabrics, causing garments to twist or skew on the body.

Mitigation strategies:

  • Precision twist stands: Use electronically controlled twist stands with closed‑loop feedback on torque sensors to keep twist uniform.
  • Torque‑balanced plying: For plied yarns, apply S‑ and Z‑twists in equal measure and alternate ply directions to counteract residual torque.

7. Special functionality integration

Challenge: Incorporating features—moisture‑wicking, anti‑microbial, flame‑resistance—often alters spinning behavior and yarn hand.


Mitigation strategies:

  • Microencapsulation: Use microcapsules with functional agents applied during fiber extrusion (for synthetics) to ensure uniform distribution and minimize impact on spin‑ability.
  • Post‑spin coating: Apply plasma or chemical coatings post‑spin on compact lines to add functionality while preserving yarn integrity.
  • Process trials: Run small‑batch trials to calibrate drafting, traveler speed, and drying parameters when adding finishes.

8. Cost vs performance optimization

Challenge: High‑performance fibers and processes can dramatically increase costs, squeezing margins.
Mitigation strategies:

  • Strategic blending: Blend premium specialty fibers (eg: modal, Tencel) at low percentages (5–10%) into commodity polyester or cotton bases to achieve performance gains at controlled costs.
  • Lean manufacturing: Adopt just‑in‑time raw material procurement and minimize inventory carrying costs, leveraging supplier consignment stock where possible.
  • Value‑based pricing: Partner with brand customers on performance‑linked pricing models—higher price for guaranteed performance metrics.

By leveraging advanced monitoring, precise process control, and strategic material choices, spinners can optimize yarn properties for any desired fabric end‑use—ensuring consistency, functionality, and cost‑effectiveness across their product ranges.

 

The Tamil Nadu Spinning Mills Association (TASMA) has urged the Textile and Commerce Ministries to levy anti-dumping duties on the rising inexpensive viscose staple yarn (VSY) imports from China.

As per K. Venkatachalam, Chief Advisor, TASMA, the rise in imports of cheaper Chinese VSY into the domestic market due to the US-China trade dispute has severely impacted the textile mills in the southern region. This is negatively affecting textile businesses around the Karur, Dindigul, and Pallipalayam areas in Tamil Nadu, he notes.

The ongoing US-China tariff war has led to China dumping its viscose staple yarn (VSY) in India at a low price of Rs 175 per kg. The uncompetitive fiber price by the monopoly manufacturer of VSF has led to stabilization of VSY price at Rs 198 per kg, explains Venkatchalam. .

Domestic VSY manufacturers cannot lower the price of VSY below Rs 198, even if they were to sell it at their cost price. Importing cheap viscose fiber into the country is not possible due to existing quality control regulations. All domestic spinning mills producing VSY are reliant on the monopoly manufacturer, which has priced VSF higher than the prevailing global market rates, he adds.

A price difference of Rs 13 per kg (approximately $0.16 per kg) of yarn is not economically viable for domestic mills. Unless the government steps in immediately to curb these cheap imports, the domestic mills engaged in VSY production will face shutdowns, warns Venkatachalam.

 

Led by Marco Charles Mtunga, Director General, a delegation from the Tanzania Cotton Board recently visited the Karachi Cotton Association to promote their shared interests and explore more opportunities for exporting cotton from Tanzania.

During the meeting, KCA officials expressed concerns about the quality of cotton being imported from Tanzania and the packaging of the cotton bales. Furthermore, they pointed out to challenges related to tracking the origin and ensuring sustainable practices, which local importers faced when buying raw cotton from Tanzania.

Mtunga assured the KCA members of addressing these issues with the Tanzanian Government to resolve them in the best interest of Pakistani cotton importers.

He explained, Cotton production in Tanzania was mainly driven by small-scale farmers, with the Shinyanga and Mwanza regions being the largest cotton-growing areas. On average, the country cultivates cotton on about a 400,000 acre farm every year. However, the amount of cotton produced per acre is lower compared to the global average, Mtunga added.

Dependent mostly on rainfall, this cotton cultivation is affected by weather conditions, the prices farmers receive, and the availability of farming supplies, agricultural advice, and new technologies. Jahangir Moghul, Vice Chairman, KCA notes, after reaching a high of 14.26 million bales in 2004-05, Pakistan's cotton production gradually decreased each year. As a result, the local textile industry is forced to import raw cotton to meet its increasing needs.

 

The South Gujarat Unit of the Textile Association (India) is set to organize an insightful seminar on April 22, 2025, focusing on the export potential of Man Made Fibre (MMF) products. With global demand for MMF textiles rising, the event aims to highlight strategies for growth through sustainability, innovation and government support.

The seminar will feature three key sessions. These include a session titled, ‘Export Opportunities in MMF Products by Dr Gurudas Aras, Independent Director and Strategic Advisor; the second session titled, ‘Government Policies to Support MMF Fabric Exports by Ashish Gujarati, President, Pandesara Weavers Co-operative Society and Past President, SGCCI; and third session by Kailash Hakim, President, Federation of Surat Textile Traders Association. This session will be titled, ‘Viewpoint of Textile Traders on MMF Fabric Exports.

The seminar will be held at the Baghban Kratos Club in Pal, Surat.

 

From Rs 31, 154.19 crore in 2013-14, sales of ‘khadi’ (handspun and handwoven cloth) and village industry products rose by 447 per cent to Rs 170,551.37 crore (approximately $20.47 billion, based on current exchange rates) in FY2024-25, as per a report by the Ministry of Micro, Small andMedium Industries.

At the same time, MSME goods production increased by 347 per cent to Rs 116,599.75 crore (approximately $14.02 billion ) in the last fiscal year, up from Rs 26,109.07 crore (approximately $3.14 billion) in 2013-14. Similarly employment generation in the sector increased by 49.23 pr cent, as per the report.

Production of ‘khadi’ clothing specifically grew from Rs 811.08 crore (approximately $97.5 million ) in 2013-14 to Rs 3,783.36 crore (approximately $454.7 million) in 2024-25. Sales of these clothes increased from Rs 1,081.04 crore (approximately $130 million) in 2013-14 to Rs 7,145.61 crore (approximately $858.4 million) in the last financial year.

While in FY2013-14, the sector employed 13 million people, this rose to 19.4 million in 2024-25, marking an increase of 49.23 per cent, the report adds.

 

Held by the PHD Chamber of Commerce and Industry (PHDCCI), the conference titled, ‘The Future of Textiles: Challenges and Opportunities in Man-Made Fibers,’ at PHD House in New Delhi, addressed the evolving landscape and significant potential within the man-made fiber industry. The event brought together leading figures, policymakers, and key stakeholders from the industry

The conference commenced with a welcome address by Madhu Sudhan Bhageria, Chairperson, PHDCCI Textile Committee and CMD, Filatex India. He emphasized on the urgent need for a robust and sustainable fiber ecosystem, pointing out China's global dominance in polyester production and urging India to develop a unified and forward-thinking strategy to strengthen its MMF capabilities.

Ashok Malhotra, Mission Director, National Technical Textile Mission (NTTM), graced the event as the Guest of Honor and delivered the keynote address. He emphasized on the critical need for India to accelerate its growth in MMF, aiming for a substantial increase in market penetration to achieve global competitiveness. Malhotra also highlighted India's potential in technical textiles and the NTTM’s initiatives to promote domestic manufacturing and explore advanced applications, while acknowledging India’s growing strengths in niche export markets.

Sanjay Sharma, President & COO, BMD, shared key industry insights discussing the complexities of the current volatile, uncertain, complex, and ambiguous (VUCA) global market.

Rajeev Gupta, Joint Managing Director, RSWM, delivered a compelling address on the increasing global dominance of MMFs and emphasized India’s potential to significantly expand its MMF fiber base to meet ambitious export targets, underscoring the importance of aligning private sector innovation with government support programs.

Jitender Kumar Gupta, Head – TXD & Scientist – E, Bureau of Indian Standards (BIS), Government of India, highlighted the crucial role of standardization and Quality Control Orders (QCOs) in ensuring the quality and compliance of MMFs and yarns, emphasizing the significance of the BIS Standard Mark.

The conference also featured insightful presentations from other leading experts, covering various aspects of the MMF value chain, innovation, and sustainability. These included Prashant Agarwal, Wazir Advisors; Raman Dutta, Brands & Sourcing Leaders Association; Yatee Gupta,  Fabiosys Innovations; Arpan B. Kharva, Textile Engineering Scholar, Sudhir K Verma, Knit Experts India; Ruma Kinger, Waste2Wear, and Abrar Ahmad, Syaahi Uniforms.

Naveen Seth, DSG, PHDCCI, delivered the theme address, and Rakesh Sangrai, Director, PHDCCI, skillfully moderated the opening and technical sessions. The conference by over 80 delegates who engaged in lively discussions and knowledge sharing with the distinguished speakers.

 

Apparel Group has launched the first MLB store in the UAE, marking the South Korean streetwear brand’s official entry into the Gulf Cooperation Council (GCC) market. The flagship store opened at Dubai Hills Mall with a grand celebration attended by fashion influencers, media, and trend-conscious shoppers, showcasing MLB’s unique fusion of street style and American sports heritage.

Globally recognized for its bold, fashion-forward collections and iconic headwear, MLB draws inspiration from Major League Baseball while catering to urban fashion sensibilities. The launch introduced the Spring/Summer 2025 collection, featuring statement apparel, caps, and sneakers designed for modern lifestyles.

This Dubai outlet is MLB’s first in the GCC, and part of a broader strategic plan by Apparel Group to expand the brand across Saudi Arabia, Qatar, Oman, and Bahrain over the next five years.

Neeraj Teckchandani, CEO of Apparel Group, commented, “Bringing MLB to the UAE reflects our vision to diversify our fashion portfolio with globally relevant brands. MLB’s blend of streetwear and sport appeals to the region’s youthful, style-savvy audience. This is just the beginning of an exciting journey.”

The launch event offered guests immersive experiences, including live performances, personalized styling sessions, and exclusive giveaways, reflecting the brand’s energetic, fashion-meets-sport DNA.

With this milestone, Apparel Group continues to strengthen its influence in the regional fashion landscape by introducing internationally acclaimed labels and setting new benchmarks in lifestyle retail. MLB’s entry signals a new era of premium streetwear in the Middle East.

 

Aiming to explore business opportunities in untapped domestic and international markets, ready-made garment manufacturers in Indore are collaborating with Clothing Manufacturers Association of India (CMAI) to showcase their products on joint platforms.

With its estimated market size exceeding $120 million, Indore's RMG sector looks to market its brands nationwide and expand the reach of Indore's apparel both domestically and overseas.

Rahul Mehta, Chief Mentor, Clothing Manufacturers Association Of India (CMAI), states, a key manufacturing hub for kids' wear, Indore has recognized that effective branding will help local manufacturers scale their products in new markets, both within India and internationally. The association aims to assist local manufacturers in growing their businesses and developing platforms to enable them to showcase their products, he adds. CMAI also plans to host a garment fair in June in Mumbai, where garment manufacturers from Indore will display their offerings.

Considering the competition in the market, it has become essential to explore alternative markets and expand reach on international platforms. Many ready-made garment manufacturers in Indore have already begun exporting, and many others are eager to tap into new markets, for which crucial know-how is necessary.

So far, approximately 30 garment manufacturers from Indore have agreed to exhibit their products and participate in B2B meetings at the CMAI fair in June. Additionally, in July, the Indore garment manufacturers plan to organize their own fair, where around 300 local manufacturers are expected to display their products.

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