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India holds significant potential to meet global apparel demand, boasting a massive workforce and scale, as per Pawan Gupta, CEO & Founder, Fashinza.
Projected to reach $350 billion by 2030 with 10 per cent annual growth, the country’s textile and apparel sector is already attracting attention from international fashion houses looking to diversify their supply chains, says Gupta. India’s inherent strengths include a broad fiber base, skilled labor, and a fully integrated value chain - from cotton farming through spinning, weaving, dyeing, and garment manufacturing. This comprehensive domestic ecosystem reduces lead times and enhances supply chain control for brands, he adds.
However, the global apparel market is intensely competitive, with investment and sourcing decisions hinging on factors like tariff structures, cost stability, and clear policies. Despite India’s advantages, FDI into its textile sector has remained modest, totaling just $4.56 billion since April 2000. This figure doesn't fully reflect the country's capacity to absorb global capital, as investors prioritize operational certainty, Gupta opines.
High input duties on fabrics, accessories, and machinery imports directly impact the overall cost structure. Even a slight 2-3 per cent cost swing per piece can sway sourcing decisions for mid-to-high-end fashion labels, making countries with zero or low-duty imports more attractive. India’s tax and duty policies also need greater coherence; varying GST slabs for garment categories and slow export credit refund cycles affect working capital and planning.
While increased budget allocation for the textiles ministry and schemes like PLI and ATUFS are positive steps, effective execution is crucial. Global brands on tight retail schedules cannot afford delays in subsidy disbursements or approvals. India also needs substantial capacity expansion in mass-produced items like denim and bottoms, where competitors like Bangladesh hold a significant scale and cost advantage.
Potential trade agreements with the UK, EU, and Canada offer a clear cost advantage. Yet, these must be complemented by rationalized input tariffs to maximize benefits. Furthermore, despite strong production clusters, infrastructure - including consistent power, water, and last-mile connectivity - still lags. To attract long-term capital and realize its ambition as a global apparel hub, India must ensure predictable operational costs, manageable compliance burdens, and synchronized reforms across tariffs, trade facilitation, and production support. Otherwise, it risks losing out to competitors offering simpler business environments.
A strong potential for cooperation exists between India and Vietnam in the textile and apparel sector, said Bui Trung Thoung, Commercial Counselor and Head-Vietnam Trade Office in India during an online seminar on Vietnam-India cooperation in the textile industry.
Vietnam’s estimated yearly market of $1.2 billion can help the country meet India’s growing demand for premium polyester fabric, he added.
The partnership will also boost raw material supply between the two countries besides expanding their production and trade capacities, Thuong added further. He emphasized, despite employing 3 million people and being the world’s third largest textiles and apparels exporter, Vietnam continues to depend on China for its imports.
India’s competitive edge in the production of cotton, yarn, and textile machines, as well as preferential treatment under the ASEAN-India Free Trade Agreement (AIFTA), can help Vietnam reduce this dependency and save input costs by 22-27 per cent.
Rakesh Mehra, Chairman, Confederation of Indian Textile Industry (CITI), added, this initiative would help restructure the existing trade disputes and establish a flexible and valuable supply chain.
Rajesh Bhagat, Chairman, Worldex India, encouraged both the countries to enhance their presence through specialized exhibitions to help foster connections, contract agreements, and expand cooperation in machinery, technology, and supply chain development.
In the escalating global focus on combating climate change, businesses are under pressure to account for their carbon footprint. While much attention has been given to direct emissions from company-owned assets (Scope 1), and indirect emissions from purchased energy (Scope 2), a more significant and complex challenge lies in Scope 3 emissions. These emissions, often constituting almost 70-90 per cent of a company's total footprint, originating from sources a company doesn't directly control, such as suppliers, vendors, transportation, and even product usage.
All about Scope 3 and its complexities
Scope 3 emission covers a wide range of indirect emissions that occur both upstream and downstream in a company's value chain. This includes emissions from business travel, employee commuting, transport and distribution, waste disposal, purchased goods and services, franchises and leased assets, and the use of sold products. Essentially, it's the emissions linked to everything a company buys and sells, and how those products are used and disposed of.
Table: General categorization of Scope 3 emissions
|
Upstream emissions |
Downstream emissions |
|
Purchased goods and services |
Use of sold products |
|
Capital goods |
End-of-life treatment of sold products |
|
Fuel and energy-related activities |
Downstream transportation and distribution |
|
Upstream transportation and distribution |
Franchises |
|
Waste generated in operations |
Leased assets |
|
Business travel |
Investments |
|
Employee commuting |
|
|
Leased assets |
The primary reason Scope 3 is so challenging is the lack of direct control. Unlike Scope 1 and 2, which a company can manage through operational efficiencies and energy choices, Scope 3 involves a web of external factors. This complexity arises from multiple suppliers, varying customer usage behavior, numerous logistics partners, and outsourced activities. Gathering reliable data across these diverse sources is a monumental task, making it difficult for companies to get a complete and accurate picture of their Scope 3 footprint.
Scope 3 in the textile & apparel industry
The textile and apparel industry showcases the challenges and significance of Scope 3 emissions.
Purchased goods and services: The emissions from raw material production (cotton farming, synthetic fiber manufacturing), textile processing (dyeing, finishing), and component manufacturing (buttons, zippers) constitute a substantial portion of Scope 3 emissions. For example, a major fashion brand working with thousands of suppliers across the globe faces the complex task of gathering emissions data from each tier of its supply chain. Initiatives to promote sustainable cotton farming or the use of recycled materials directly address these Scope 3 emissions.
Transportation and distribution: The global nature of the industry, involving the movement of raw materials, intermediate products, and finished goods, leads to significant emissions from shipping, air freight, and trucking. A company optimizing its logistics by consolidating shipments, using more fuel-efficient transport, and exploring localized production can reduce emissions within this category.
Use of sold oroducts: Consumer behavior, such as washing and drying clothes, contributes to downstream emissions, mainly through energy consumption. In fact, brands promoting energy-efficient washing instructions or designing clothes that require less frequent washing are taking steps to address emissions associated with the use of their products.
End-of-life treatment of sold products: The disposal of textiles in landfills or through incineration generates emissions. Therefore, companies implementing take-back programs, designing for recyclability, or utilizing biodegradable materials aim to minimize emissions at the end of the product lifecycle.
The imperative of action
Despite the difficulties, ignoring Scope 3 is no longer a viable option. Stakeholders, including investors, customers, and regulators, are increasingly scrutinizing companies' environmental impact. Regulations, such as the EU's Corporate Sustainability Reporting Directive (CSRD), are expanding requirements for emissions reporting, pushing companies to enhance their transparency. Transparency in Scope 3 emissions is becoming essential for maintaining investor trust and ensuring global compliance.
Tackling Scope 3 requires a shift in mindset and a strategic approach. Companies need to engage deeply with their value chains, fostering collaboration with suppliers and partners to gather data and implement emissions reduction strategies. This may involve:
Mapping the value chain: This involves identifying important sources of Scope 3 emissions.
Data collection and management: Establishing systems to collect and manage emissions data from various sources.
Supplier engagement: Working with suppliers to improve their emissions performance.
Product lifecycle assessment: Evaluating the emissions associated with products throughout their lifecycle.
The bottomline is addressing Scope 3 emissions is not just an environmental imperative but also a business necessity. Companies that proactively manage their Scope 3 emissions will be better positioned to mitigate risks, enhance their reputation, and create a more sustainable future. As the regulatory landscape evolves and stakeholder expectations rise, understanding and tackling Scope 3 emissions will be crucial for long-term success.
Luxury sleepwear brand, Ammarzo plans to expand its net revenues to Rs 5 crore over the next 12–18 months. By FY 2027–28, the brand aims to reach revenues of Rs.40 crore to establish Ammarzo as Rs 150-crore valued premium D2C brand. The brand’s future growth will be based on a strategy of product excellence, customer obsession, and intelligent, sustainable scaling.
Known for high-quality fabrics, the brand caters to the needs of modern Indian women in metro cities. It uses natural, breathable fabrics and careful designs to enhance sleep, mood, and self-esteem.
India's women's sleepwear market is above Rs 6,000 crore, with luxury sleepwear likely to grab a about 15–20 per cent share of it. Driven by higher incomes, rising awareness about fabrics and a culture of self-care, this category is expanding at over 9 per cent CAGR.
Moving into lifestyle products that upgrade the pre-sleep ritual, Ammarzo’s next round of offerings will include high-end bed linens, aromatherapy pillow sprays, sleep masks, candles, and fashion lounge ensembles.
India’s premier sourcing platform, Apparel Sourcing Week has launched Textile Sourcing Week (TSW) 2025, a dedicated show designed exclusively for textile suppliers, trims and accessory manufacturers and material innovators.
Being held concurrently with the 5th edition of ASW on July 2-3, 2025, at the Sheraton Grand, Whitefield in Bengaluru, TSW aims to become the go-to hub for fabric and raw material sourcing in South Asia.
TSW 2025 aims to bridge the gap between material innovators and the fashion industry by providing an unparalleled opportunity for textile, yarn, trims and accessories manufacturers to showcase their latest products and innovations. The event is designed to cater to the evolving needs of the industry, facilitating direct access to over 2,000 verified buyers from India, the UK, UAE, Saudi Arabia, Australia, the USA and the EU.
TSW features raw material sourcing managers actively looking for textile and material partners. The show allows attendees to engage meaningfully with top apparel manufacturers and brands in an exclusive B2B setting. It also enables them to establish their leadership in sustainability, next-gen fabrics, performance accessories, etc. One of the highlights of the show is a dedicated panel discussion on the textile industry.
The show features a wide range of products including greige to finished woven, knitted and technical fabrics; diverse yarns such as spun, filament, core-spun, fancy and high-performance; and an extensive selection of trims like interlinings, zippers, buttons, tapes, labels and laces. It is likely to be attended by over 150 top apparel manufacturers, over 50 fabric and accessories and over 8,000 buyers from across global fashion hubs.
The show also features over 25 knowledge sessions including seminars and workshops on sourcing strategies, sustainability, trend forecasting, D2C ecosystem and innovation in retail. Over 100 renowned speakers from retail, manufacturing, design and technology are attending these sessions.
Meta has released a new guide designed to help Indian brands navigate the ins and outs of selling online internationally. Tilted, ‘Grow Your Exports: A Guide to Cross-Border Business Growth,’ the guide was launched as more and more Indian businesses are engaging in cross-border e-commerce.
According to a study Meta commissioned with Kantar, almost half of the 14,591 consumers surveyed across various markets had made a cross-border purchase in the last six months. The study also reveals, 71 per cent of these shoppers were open to trying new brands they found online, and 72 per cent would consider switching brands if the right offer or promotion came along.
India's cross-border e-commerce sector is booming. In 2023, international online retail sales from India topped $8 billion, with projections showing a 29 per cent rise by 2025. Major e-commerce platforms are fueling this growth.
However, Indian businesses are hitting some roadblocks in the global e-commerce arena. An EY-ASSOCHAM report points to tough customs procedures, issues with getting payments back into India, and restrictive policies as big hurdles. The report suggests that policy changes are needed in payments, customs, and logistics to help Micro, Small, and Medium Enterprises (MSMEs) access export markets and hit the government's target of $200–300 billion in e-commerce exports by 2030.
To tackle some of these challenges, the Indian government inked 13 free trade agreements and six preferential pacts with trading partners in 2023 to improve access to international markets. Plus, initiatives like the Foreign Trade Policy aim to boost the country’s e-commerce exports, with the goal of making India an export powerhouse in the coming years.
Meta's new playbook offers tips on using digital tools to get around some of these obstacles. The company highlights the importance of personalization, noting that 62 per cent of cross-border shoppers expect shopping experiences tailored to their interests.
As cross-border commerce keeps evolving, Indian brands are encouraged to embrace digital transformation and use the available tools and policies to expand their global reach.
To be held at the Chamber of Commerce and Industry of Turkmenistan from June 11-13, 2025, the ‘Turkmen Textile Expo 2025’ will highlight the latest achievements of the Turkmen textile industry and its advancements in global partnerships, according to the Press Service of the Chamber of Commerce and Industry of Turkmenistan.
The event will feature a broad spectrum of the textile industry, including the processing of natural fibers, apparel and footwear manufacturing, home textiles, spare parts, chemicals and dyes, and decorative products. Exhibiting companies are expected to unveil cutting-edge technologies and innovations that are shaping the future of textile production.
Beyond simply showcasing Turkmenistan's textile capabilities, the ‘Turkmen Textile Expo 2025’ aims to serve as a crucial business platform for strengthening international cooperation within the sector. The expo will provide participants with extensive opportunities to explore innovative solutions and exchange professional expertise.
Organizers anticipate, to be held at the highest organizational level, the ‘Turkmen Textile Expo 2025’ will attract participation by companies, manufacturers, and professionals from around the world.
Amid evolving global trade dynamics and tariff challenges, Vietnam's textile and footwear industries are actively diversifying their export markets, targeting countries with which Vietnam has free trade agreements (FTAs).
Truong Van Cam, Vice Chairman, Vietnam Textile and Apparel Association (VITAS), states, many companies are currently focused on fulfilling existing export orders. However, the industry urgently needs detailed market information to boost exports to promising destinations such as Russia, Brazil, Chile, and the Middle East.
Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary, Vietnam Leather, Footwear and Handbag Association (Lefaso), notes, changes in trade policy from the United States and the European Union are significantly impacting Vietnamese exporters. To lessen these effects, businesses are expanding into new markets in South America and the Middle East, where consumer demand is both large and diverse.
This year, the footwear industry continues to target exports to Africa, Asia, Japan, Europe, and the US, while also beginning to engage with major e-commerce platforms like Alibaba and Amazon to open new sales channels.
To support these initiatives, the Vietnam Trade Promotion Agency, under the Ministry of Industry and Trade, is helping firms participate in trade promotion activities to broaden their reach, especially in emerging, high-potential markets such as Latin America, Halal markets, India, Russia, and the Middle East.
The agency will continue supporting firms at major trade fairs such as Anuga in Germany, SIAL in France, Canton Fair in China, World Food Moscow, and Trade Expo Indonesia, providing both logistical and financial backing.
Do Ngoc Hung, Vietnam's Trade Counselor in the U.S., emphasizes, firms need to improve their improve competitiveness, diversify supply chains, and reduce reliance on single-source inputs. Encouraging full utilization of new-generation FTAs, he urges faster domestic consumption and new FTA negotiations, highlighting Canada as a promising market.
Meanwhile, Cam, Vice Chairman, VITAS opines, trade offices should regularly update businesses on market trends, US consumer shifts, and trade talks to help exporters adjust their strategies.
Fast-fashion giant Shein plans to significantly increase its product testing this year. The e-commerce company aims to conduct 2.5 million product safety and quality tests in 2025 as against 2 million conducted last year. It also plans to invest $15 million in compliance initiatives this year.
This move comes after the European Union issued a warning about potential fines if the company doesn't address concerns regarding unsafe and hazardous products sold on its platform.
Beyond selling its own-branded apparel in 150 countries, Shein also operates a marketplace where sellers offer toys, gadgets, and homeware, shipped directly from factories - mostly in China - to consumers worldwide. Since launching its marketplace, Shein has terminated partnerships with over 540 sellers due to compliance breaches.
Earlier in the week, the EU's Consumer Protection Co-operation (CPC) network, comprising national consumer authorities and the European Commission, informed Shein of practices that violate EU consumer law. The company has been given one month to respond to these concerns.
Fueled by increasing demand for these specialized textiles, the North American market for non-woven, felt, and coated textile clothing is projected to expand at a CAGR of 1.2 per cent between 2024 and 2035, reaching an estimated value of $27.5 billion by the end of 2035.
In terms of volume, the market is forecast to grow at a CAGR of 1.5 per cent during the same period, reaching an estimated $1.7 billion units by 2035-end.
In 2024, the North American market for these textile products was valued at $24 billion, representing a 7.7 per cent increase from the previous year.
The United States was the dominant consumer, accounting for approximately 99 per cent of the total volume with 1.4 billion pieces. The US also led the market in terms of value, reaching $8.4 billion.
Imports of non-woven, felt, and coated textile clothing by North America increased substantially by 358 per cent to approximately 1.4 billion units in 2024. While the value of these imports saw a slight decrease to $2.8 billion in 2024, the overall import volume experienced significant growth.
The United States was a major importer, responsible for over two-thirds of all non-woven, felt, and coated textile clothing imports. In terms of value, the U.S. was the primary market for these imported goods in North America, with imports valued at $2.4 billion. The average annual growth rate of import value in the US was 2.2 per cent between 2013 and 2024.
