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India's trade in apparel and home textiles with the United Kingdom is set to double in volume within the next five to six years, projects a new report by the credit rating agency ICRA.
This significant growth is expected due to the recently finalized Free Trade Agreement (FTA) between the two countries, which is anticipated to become operational in calendar year 2026, pending legal review.
The UK and India concluded their Free Trade Agreement on May 6 after roughly three years of negotiations. According to the agreement's terms, India will reduce tariffs on 90 per cent of British goods, with 85 per cent becoming completely duty-free over a ten-year period.
In return, Britain has agreed to eliminate duties on 99 per cent of India's exports to the UK. Currently, the trade between the two nations accounts for only about 2 per cent of India's total trade, indicating considerable untapped potential given the economic size and capabilities of both countries.
At present, India ranks as the UK's 12th largest trading partner overall and holds the fifth position specifically for apparel and home textile imports.
In calendar year 2024, the UK imported $1.4 billion worth of apparel and home textiles from India, representing a 6.6 percent share of the UK's total textile imports.
The United States and the European Union remain the primary export destinations for Indian apparel and home textiles, collectively accounting for 61 per cent of exports in CY2024.
The UK's share has remained relatively stable at 7-8 percent over the past five years with flat growth. However, this figure is projected to increase substantially to 11-12 per cent by CY2027, reflecting a compound annual growth rate of 11 per cent between 2024 and 2027.
Currently, the UK imposes an 8-12 per cent duty on apparel and home textiles imported from India. With the elimination of tariffs on 99 per cent of Indian goods, including textiles, manufacturers are expected to significantly increase production capacity over the next 4-5 years to fulfill anticipated orders.
China currently dominates as the largest apparel and home textile exporter to the UK with a 25 per cent market share in 2024, followed by Bangladesh (22 per cent), Turkey (8 per cent), and Pakistan (6.8 per cent).
Once the FTA is implemented, India will gain zero-duty access for its apparel and home textile exports, creating a level playing field with countries that already enjoy duty-free status, such as Bangladesh, Vietnam, and Pakistan.
Textile entrepreneurs are voicing concerns over Bangladesh Government’s decision to eliminate the reduced 15 per cent tax rate arguing that the industry is already grappling with ongoing gas and electricity shortages, and a higher tax rate would only worsen their struggles.
Bangladesh Government plans to eliminate the reduced 15 per cent tax rate for textile businesses in the upcoming fiscal year, moving away from tax exemptions, according to officials at the National Board of Revenue (NBR).
Under the new budget, the textile sector will face the standard corporate tax rate of 27.5 per cent. However, companies listed on the stock market will benefit from a slightly lower rate of 22.5 per cent, as per NBR officials. Additionally, a 2 per cent advance income tax (AIT) may be levied on imported raw materials like cotton and man-made fibers.
Rising costs over the past two years have significantly impacted profitability in the sector, says Saleudh Zaman Khan, Vice President, Bangladesh Textile Mills Association (BTMA). In such a situation, if taxes are increased, many businesses will find it difficult to survive, he adds.
A senior NBR official, involved in budget formulation and speaking anonymously, confirms, there are no plans to extend the reduced tax rate benefit for the textile sector that is set to expire on June 30 of this year. Hence, companies in this sector will have to pay the regular tax rate going forward. This move is part of the government's effort to phase out tax exemptions and boost revenue collection, he notes.
However, the existing reduced tax rate for RMG exporters, currently capped at 12 per cent, may be retained for another two years. These companies are entitled to benefits under the sunset clause until 2028, limiting the scope for early withdrawal.
Dr Syed Md Aminul Karim, former NBR member, states, for years, the government has allowed the textile and garment sectors to pay taxes at reduced rates. But now, it's time to gradually shift them to regular tax rates.
The BTMA represents 1,854 textile mills, with 58 of them listed on the stock market. Approximately $22 billion has been invested in this sector.
At the recent World Retail Congress 2025 in London, Helena Helmersson, Chairperson, Circulose and former CEO, H&M Group, urged all brands to refocus on sustainability. Helmersson acknowledged, focus on sustainability has diminished due to various reasons like the pandemic, inflation, wars, artificial intelligence (AI), etc. All these factors have diverted attention from sustainability, as it was no longer perceived as the biggest challenge facing companies.
However, there was no need to despair, Helemersson emphasized. She cited the example of the framework and graphical representation, Gartner Hype Cycle to illustrate the specific path followed by trends: from initial hype to unmet expectations, disillusionment, before stabilizing and achieving long-term implementation. The industry is currently in the ‘valley of disillusionment’ regarding sustainability, Helmersson noted. Their progress is slow with skepticism amongst consumers increasing due to rising broken promises from companies.
To break this cycle, the industry needs to bridge the gap between sustainability and profitability, Helmersson opined. For example, it needs to remove pressure on profitability during the purchasing process, she added.
Companies need to also focus on meeting practical needs to win over the disillusioned consumers, Helmersson asserted. She cited the example of the second-hand platform Sellpy which helps consumers declutter their wardrobes and is also pocket-friendly.
Companies must allow room internally for achieving goals, and form long-term partnerships, Helmersson noted. There must be coordination and investment with a long-term perspective, she added.
Kering and Balenciaga have announced the appointment of Pierpaolo Piccioli as the new Creative Director of Balenciaga, effective July 10, 2025. A celebrated designer known for his mastery of Haute Couture, Piccioli will succeed Demna, who led the fashion house for the past decade. His debut collection is scheduled for October 2025.
Piccioli, former Creative Director at Valentino, brings a distinctive creative vision and deep respect for craftsmanship to the Parisian brand. In a statement, Francesca Bellettini, Kering’s Deputy CEO for Brand Development, praised Piccioli’s creative voice and passion for savoir-faire, calling him ‘the ideal choice’ to take the house into its next chapter. She also thanked Demna for his transformative leadership, which shaped Balenciaga’s modern identity.
Gianfranco Gianangeli, CEO of Balenciaga, expressed enthusiasm about the collaboration, stating that Piccioli’s interpretation of the house’s rich heritage and bold spirit will usher in a dynamic new era.
Piccioli acknowledged the legacy he inherits, crediting Demna for his impactful vision. “Balenciaga is a brand full of possibilities. I’m honoured to carry forward its evolving aesthetic,” he said. “This is a passing of the torch I deeply respect, and I’m eager to shape a new chapter of the Maison.”
With creative alignment from the start, the partnership is poised to blend Balenciaga’s storied past with Piccioli’s refined couture sensibility. Industry watchers now await the unveiling of his first collection, expected to mark a stylistic shift while honouring Cristóbal Balenciaga’s legacy.
Across Europe, pre-owned garments are shedding their ‘used’ label and stepping into the spotlight as a mainstream force. A new study by the Circular Fashion Federation in collaboration with KPMG highlights the secondhand market is ready for significant growth. The report projects the resale apparel sector across the continent will grow from €15.9 billion in 2024 to €26 billion by 2030, at an average annual growth rate of 8.5 per cent. This growth is being due to in part, by proactive policy initiatives at both the European Union and national levels, revealing a systemic shift towards a more circular economy.
France leads the charge, Spain set for fastest growth
Currently at the forefront of secondhand’s rise in the continent is France, which generated 26 per cent of Europe's total secondhand fashion revenue in 2024, which was almost €4.1 billion. While France's market share is projected to slightly adjust to 24 per cent by 2030, its revenue is still expected to climb to €6.3 billion, at an annual growth rate of 7.4 per cent.
However, the study highlights Spain as the market to watch, forecasting the most rapid expansion in the secondhand sector with an average annual growth rate of 8.1 per cent over the decade from 2024 to 2034. This high growth is largely attributed to the enthusiastic adoption of resale by younger generations within the country. Italy is also showing strong momentum, with a projected annual growth rate of 7.4 per cent, pushed up by its well-established e-commerce infrastructure.
Germany, on the other hand, is anticipated to experience a more moderate growth rate of 5.4 per cent annually. Interestingly, the UK, despite having a mature and established resale market, is projected to see a 4 per cent annual decline in secondhand fashion sales in coming years, suggesting a potential shift in consumer behavior or market dynamics.
Table: Europe's secondhand fashion market in 2024
|
Country |
Revenue (€ bn) 2024 |
Projected revenue in 2030 (€ bn) |
Market share (%) 2024 |
Projected market share (%) 2030 |
Average annual growth rate (2024-2030/34) |
|
France |
4.1 |
6.3 |
26 |
24 |
7.40% |
|
Spain |
- |
- |
- |
- |
8.1% (2024-2034) |
|
Italy |
- |
- |
- |
- |
7.40% |
|
Germany |
- |
- |
- |
- |
5.40% |
|
United Kingdom |
- |
- |
- |
- |
-4% |
|
Europe Total |
15.9 |
26 |
100 |
100 |
8.50% |
Employment growth and physical retail
The secondhand market is not just about economic growth; it's also a significant job creator. The study reveals approximately 119,000 people are currently employed within Europe's secondhand fashion sector. Projections reveal additional 75,000 jobs will generated by 2030, showcasing the sector's economic importance.
Interestingly, despite the rise of online platforms, physical retail such as thrift stores and branded resale stores continue to dominate secondhand purchases. Almost 81 per cent of all secondhand sale currently occur in brick-and-mortar stores, only 19 per cent is online via dedicated secondhand platforms or brands' own resale initiatives. This highlights the continued importance of physical spaces for secondhand sale.
The environmental imperative
The study sheds light on the key drivers behind consumers' attraction of secondhand fashion. While price is a significant factor, environmental consciousness is playing an increasingly crucial role. The report emphasizes the environmental benefits of choosing pre-owned clothing, stating, "Reuse is a key lever for reducing environmental impact: buying a secondhand garment extends its lifespan by an average of 2.2 years, which can reduce its carbon, water, and waste footprint by up to 73 per cent." This underscores the potential of the secondhand market to contribute to a sustainable fashion.
The rise of rental and repair
Beyond resale, the study also examines the growing, albeit smaller, segments of clothing rental and repair. Currently only 0.3 per cent of the global apparel market, is rental but its expected to grow, particularly in the children's wear sector. However, the report notes shifts in consumer behavior are necessary to overcome existing barriers and boost rental services. In contrast, the apparel and footwear repair market is already seeing good growth, particularly in France, where a national incentive program launched in late 2023 has given a boost to this segment. Across Europe, the repair market has grown from €2.2 billion in 2020 to €2.7 billion in 2024, at an annual growth rate of 5.5 per cent. Within this segment, sneaker and shoe repairs are predicted to be the fastest-growing category. The study highlights "repairing an item instead of replacing it can reduce CO₂ emissions by 30 per cent and extend its lifespan by 70 per cent."
France leads the repair revolution
The French apparel repair market is projected to grow at 7.4 per cent annually. Across Europe, this segment is expected to reach €3.7 billion by 2030, at 5. 5 per cent average growth. France's contribution to this growth is substantial, anticipated to rise from €1 billion in 2024 to €1.6 billion within the next five years that is almost 40 per cent of the total European repair market. This growth is also expected to generate around 10,000 new jobs across the region, 3,000 in France alone.
Textile recycling, a steady path
Textile recycling (excluding footwear) is projected to see modest growth. The study suggests without additional public incentives, expansion in this sector will remain limited. The European market for textile recycling is expected to grow from €1.4 billion in 2024 to €1.6 billion by 2030, with France's share at around €249 million within this time. Despite existing technical and infrastructure-related challenges, the sector still holds the potential to generate over 3,500 new jobs.
Circular fashion's growing footprint
When considering all aspects of circular fashion – including resale, repair, rental, and recycling – the sector was a €20 billion market in Europe in 2024. By 2030, this figure is projected to reach €31.3 billion, reflecting at an average annual growth rate of 7.7 per cent. France, currently valued at €5.4 billion across all circular fashion segments, is expected to reach €8.2 billion by the end of the forecast period.
The Circular Fashion Federation emphasizes these circular business models are no longer niche alternatives but rather "concrete tools to meet consumer expectations, enhance environmental performance, anticipate regulatory requirements, and unlock new avenues of growth" for brands. However, the federation stresses that achieving meaningful transformation requires a concerted and collaborative effort involving brands, retailers, policymakers, and consumers alike. The projected growth of Europe's secondhand fashion market and the broader circular economy signals a fundamental shift in how fashion is consumed and valued, paving the way for a more sustainable and economically vibrant future for the industry.
MarediModa Miami, taking place from May 31 to June 2 at the Cabana Show during Miami Swim Week, will spotlight top-tier European fabric makers from Italy and Spain. As the US ramps up tariffs on Asian imports, European textile companies see a chance to position themselves as premium, ethical alternatives.
"Despite widespread global uncertainty, we’re reaffirming our presence in Miami," said Claudio Taiana, President of MarediModa. "Our fabrics are gaining appreciation as brands reevaluate their supply chains. The US is a vital, long-standing partner for us, and it’s important to invest in this relationship now more than ever."
The showcase arrives at a time of mounting tension in the global apparel industry. Chinese companies have launched viral campaigns on social media, accusing major global brands of unethical sourcing. While many of these claims remain unverified, they have stirred intense scrutiny around the true origins of luxury products.
This backlash has fueled growing consumer demand for transparency and ethics in fashion something MarediModa’s participants hope to address by promoting Made in Europe products as both sustainable and traceable. With shifting trade policies and growing ethical awareness, MarediModa sees an opportunity to help reconfigure the global supply chain.
As US brands search for alternatives to Asian manufacturing, the European fabric sector is ready to offer creative excellence, supply reliability, and a strong ethical foundation all on display at MarediModa Miami.
Registration is now open for Autumn Fair 2025, the UK’s largest seasonal trade show for the Home, Gift and Fashion sectors. Set to take place from 7-10 September at the NEC Birmingham, the show will cater to retailers gearing up for the critical golden quarter of retail. This year’s edition arrives with a new look, a record-breaking exhibitor line-up, and a host of product launches.
Over 70 per cent of attendees are independent retailers, highlighting Autumn Fair’s role as a key sourcing hub. Buyers from more than 12,000 stores, including boutiques, department stores and high-street names, will attend to discover new products and restock for the peak season.
This year features a strong line-up of new-to-show and exclusive brands, including Bedeck, Cosz Enterprise, Excalibur Sports, Panya Global, Killstar, Serena Atelier, and Arya Jewellery among many others. A major new addition is the debut of the Taste at Autumn Fair Pavilion, focused on food gifting and artisan consumables, featuring sampling stations and curated experiences.
The show will be divided into ten distinct zones including Home, Gift, Beauty, Kids, Fashion, Jewellery, and more. Co-located with Source Home & Gift, the fair offers a full sourcing journey from artisan creators to global suppliers.
Special highlights include five New Business Pavilions and the Greeting Card Association’s Debut Zone for emerging publishers. Educational sessions, networking opportunities, and a dedicated Buyers Lounge round out the visitor experience, reinforcing Autumn Fair as an essential event for UK retail success.
Archroma, a global leader in specialty chemicals, is set to showcase its latest sustainable innovations in denim color and processing at two major international events: Denim Premiere Vision in Milan on May 21-22 and Denimsandjeans Vietnam on June 25-26. These platforms will highlight Archroma’s commitment to advancing environmentally responsible textile solutions without compromising denim’s iconic appeal.
With denim production under increasing scrutiny for high water, chemical, and energy use, Archroma is introducing solutions aimed at reducing environmental impact. “With a broad portfolio of textile dyes and chemicals backed by decades of advanced research, Archroma is rewriting the rules for those who love denim,” said Dhirendra Gautam, VP Global Marketing and Strategy at Archroma. “From timeless indigo to trend-driven finishes, we are evolving denim with processing solutions that preserve the fabric’s iconic appeal while minimizing its impact.”
At both events, Archroma will present Denim Halo, an innovative pre-treatment and dyeing process that enables the production of distressed denim looks with a reduced environmental footprint. Denim Halo combines Dirsol RD p, a new yarn pre-treatment with Archroma’s indigo, sulfur, or biosynthetic dyes. This results in laser-friendly denim that delivers sharp contrasts in deep black and indigo shades without altering standard dye recipes or setups. The process also reduces yarn shrinkage, improves tensile strength, and lowers water and energy use, while avoiding potassium permanganate and minimizing caustic soda in sulfur dyeing.
Archroma will also reveal a new capsule collection that highlights Black Denim created using Denim Halo and Diresul Evolution Black, paired with premium fabric from Kipas Denim and finished using Jeanologia’s eco-friendly washing technology. The collection offers a modern, refined take on black denim rooted in responsible production.
Visitors will also get a closer look at breakthrough dyestuffs like Diresul Evolution Black, a sulfur black dye with 57 per cent lower synthesis impact, and Denisol Pure Indigo 30 LIQ, an aniline-free indigo alternative. EarthColors, Archroma’s patented biowaste-based dye technology, will also be showcased, emphasizing circularity by converting non-edible food and agricultural waste into high-performance dyes.
Archroma invites visitors to Booth A25 at Superstudio Piu, Milan and Booth 06 at Riverside Palace, Ho Chi Minh City.
In a move aimed at promoting a sustainable built environment across India's apparel manufacturing sector, the Apparel Export Promotion Council (AEPC) has signed a Memorandum of Understanding (MoU) with the Green Business Certification Institute Pvt Ltd (GBCI). The partnership seeks to increase the number of LEED-certified garment factories in the country through efficient energy, water, and waste management and advanced monitoring technologies.
The MoU was formalised last week by AEPC Secretary General Mithileshwar Thakur and Gopalakrishnan P, Managing Director of GBCI for Asia Pacific and the Middle East.
Highlighting the significance of the initiative, AEPC Chairman Sudhir Sekhri said, “The Indian garment industry is now more committed than ever to sustainable practices. LEED certification signals reduced resource consumption, a lower carbon footprint, and healthier working conditions, while also lowering operational costs and boosting investor confidence.”
India currently has only 13 LEED-certified garment factories, compared to around 250 in Bangladesh. “There is strong global emphasis from major brands on sustainability. To stay competitive, Indian factories must embrace green building principles,” said Thakur.
GBCI, a global leader in certifying green business practices, will offer localised support to facilitate on-site certification, technical guidance, and sustainability verification. Gopalakrishnan noted that the collaboration would help Indian manufacturers meet the evolving environmental and social expectations of the global market.
The MoU includes cooperation in knowledge sharing, technical publications, and awareness campaigns. AEPC reaffirmed its mission to embed sustainability, traceability, human welfare, social compliance, and ESG principles in India’s garment sector through strategic partnerships.
This collaboration is a strategic step to enhance India’s apparel industry’s global standing through sustainable transformation.
India's ban on imports from Bangladesh through its land ports could generate over Rs 1,000 crore in additional business for the domestic textile industry, opine industry experts. However, it could also raise the prices of certain branded clothing items like T-shirts and denim by around 2 per cent-3 per cent due to supply issues during the winter season, they add.
Issuing a notification, the Director General of Foreign Trade (DGFT) banned the import of garments and several other products from Bangladesh via land routes. However, these goods will still be allowed to be shipped in through the ports of Kolkata and Nhava Sheva.
The local industry had been pushing for restrictions on imports, expressing concern over a double-digit growth in textile imports from Bangladesh due to zero import duties. This move is also expected to curb the backdoor import of Chinese fabric, which otherwise faces a 20 per cent import duty.
This change in import policy will impact Bangladesh more than India, says Bimal Bengani, Chairman-Eastern Region, Federation of Indian Export Organizations (FIEO).
Industry insiders believe, the ban on land route imports from Bangladesh could significantly boost local manufacturing. The industry can now expect Rs 1,000-2,000 crore) worth of those imports to be replaced by Indian manufacturing, says Sanjay K Jain, Chairman, National Textile Committee at the Indian Chamber of Commerce (ICC).
Indian companies have been importing both woven and knitted apparel from Bangladesh to take advantage of the zero-duty benefits.
With this move, the reduction in imports will help strengthen domestic production and support local manufacturers, avers Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation, which represents the entire textile industry value chain.
According to industry estimates, India meets about 1per cent-2 per cent of its apparel consumption through imports, while Bangladesh accounts for roughly 35 per cent of the total garment imports into the country.
This move will also reduce the backdoor entry of Chinese fabrics into India (without duty) that were being processed in Bangladesh and then sent to India duty-free, Jain adds.
Industry estimates indicate, all leading Indian as well as global brands operating in India, source between 20 per cent and 60 per cent of their garments from Bangladesh.
The supply chains of these brands and numerous small and medium-sized enterprises (SMEs) are expected to face short-term disruptions.
Buyers will be impacted as their supply chain will be temporarily disrupted, leading to higher costs and longer lead times, Jain explains.
