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Indonesian textile manufacturers are urgently seeking new export markets after the United States last month announced a 32 per cent tariff on their goods.
The country is negotiating US President Donald Trump’s punitive tariffs, which have been put on hold until July.
Having relied heavily on the American market, many Indonesian textile manufacturers are now eyeing Europe and Southeast Asia, while others are exploring ways to tap into their nation’s large domestic market.
Among the many businesses in the industry that have been hit hard by falling demand due to the influx of cheap imports, Bandung-based textile manufacturer, PT Sipatex Putri Lestari recently laid off 300 employees and is set to cut another 100.
Despite the challenges, Sipatex stays focused on the domestic market and adapts to changing consumer needs. It plans to replace more than 500 aging machines by 2030 to boost efficiency.
However, David Leonardi, Director-Operations, says, manufacturers need to explore what lacks these goods in Indonesia?
Indonesian textile manufacturers depend heavily on the US market, with exports valued at $4.6 billion last year. However, Indonesian Textile Association warns, demand could drop by as much as 30 per cent after the announcement of steep tariffs by the US. The industry is now urgently seeking out new markets.
According to Danang Girindrawardana, Executive Director, Indonesian Textile Association, Southeast Asia and its surrounding regions are areas with high market potential that can be explored.
Engaged in drafting a white paper to help regional manufacturers work together amid the global economic uncertainties, Indonesia leads the ASEAN (Association of Southeast Asian Nations) Federation of Textile Industries, which represents the interests of Southeast Asia's textile and apparel manufacturers.
Manufacturers are also urging stronger protection for labor-intensive industries, which have long faced an influx of low-cost imports from China.
Led by Marta Ortega, Chairperson, Inditex is revamping its executive team. The company announced three new appointments following the departures of prominent figures Jesús Echevarría, Carlos Crespo, and Pablo del Bado, as per a filing with the Spanish securities regulator CNMV.
The group has tapped Fernando de Bunes Ibarra, Former Head-Risk Management as its new Sustainability Director. He will succeed Javier Losada, a long-time leader within the company.
Having joined Inditex in 1993, Losada served as a Sustainability Director since 2019. He was appointed to the executive committee in 2022 after the exit of Carlos Crespo, who was then the Chief Operating and Digital Transformation Officer. Losada will depart the company after a transition period.
Inditex has strengthened its financial leadership by naming Ignacio Fernández Fernández as Corporate General Manager, with oversight of finance, sustainability, logistics, transportation, and infrastructure. The group has also appointed Andrés Sánchez Iglesias as Chief Financial Officer. Both executives are set to join the company’s executive committee. Fernández previously held the position of General Finance Director, while Sánchez headed the tax division.
These changes are part of a larger restructuring strategy focused on generational renewal, spearheaded by Óscar García Maceiras, CEO. Earlier this year, Inditex also named Gorka García-Tapia Yturriaga as the Head-Investor Relations, taking over from Marcos López García.
The Galician textile group currently owns eight fashion brands: Zara, Zara Home, Pull&Bear, Bershka, Oysho, Lefties, Stradivarius, and Massimo Dutti. According to its latest financial results, Inditex ended fiscal year 2024 with a 7.5 per cent increase in sales compared to the prior year, reaching a revenue of €38.632 billion.
To revitalize a sector that has long been a cornerstone of the country’s industrial base, the Mexican Government plans to boost its textile production capacity by over $5 billion in the coming years.
According to data from the National Institute of Statistics and Geography (Inegi), the Gross Domestic Product (GDP) of Mexico’s textile and apparel industry reached 488 billion pesos in 2024.
To support this growth, President Claudia Sheinbaum’s administration has rolled out a three-phase strategy to recover over 80,000 jobs lost in the textile sector. The first phase targeted the seizure of illegally imported goods. The second involved revoking the IMMEX program benefits from companies found to be misusing it. The third phase is focused on creating direct connections between buyers and sellers through B2B meetings.
At a B2B networking event in Mexico City, Marcelo Ebrard, Economy Secretary said, the government aims to continue building on this effort. It will sustain and refine these initiatives to grow its production capacity by more than $5 billion.
Emphasizing on the historical importance of the textile industry in Mexico’s industrial development, Ebrard emphasizes, founded in 19th century, the first Mexican industry was a textile company - Constancia Mexicana. Much of Mexico’s industrialization was built around textiles, and the future is tied to this sector as well.
In 2024, the GDP for textile input and finishing manufacturing in Mexico totaled 131 billion pesos. The production of textiles (excluding garments) was valued at 78 billion pesos, while garment manufacturing reached 279 billion pesos.
The sector is deeply connected to employment, investment, and commerce- it’s an integral part of Mexico’s broader economy, Ebrard adds.
Even as the company continues to face criticism regarding its environmental footprint and alleged human rights abuses, fast-fashion giant Shein is hosting its largest-ever Australian pop-up store in Sydney this month.
Termed by the Daily Telegraph as a rare chance for customers to see and try on Shein’s typically online-only offerings, this pop-up will feature 11 of Shein's sub-brands, including a new one called Aralina, which the company promotes as sustainable and ‘wellness-inspired.’
A quick online look at Aralina clothing reveals, many items are made of polyester, a synthetic fabric usually made from plastic, and are priced similarly to Shein's other low-cost, low-quality items, raising doubts about the company's eco-friendly claims.
Fast fashion raises concerns about quality and ethics, impacting both our closets and the wider world. These brands, which produce large quantities of low-quality items, often rely on cheap materials and exploitative labor practices, making them frequent targets of criticism.
Environmental organizations condemn fast fashion for fueling overconsumption and excessive textile waste. As fast-fashion garments are made as cheaply as possible, they tend to wear out quickly, encouraging a cycle of constant buying and discarding, which has a significant environmental impact.
As per an Earth.Org report, more than 92 million metric tons (over 101 million US tons) of textile waste ends up in landfills each year. In the US alone, the average person throws away about 81.5 pounds of clothing annually. Globally, only about 12 per cent of used clothing is recycled. Additionally, the environmental damage caused by fast-fashion production, such as polluted waterways, toxic chemical use, and excessive resource consumption, often affects the health and well-being of local communities.
At the same time, many fast-fashion brands rely on low-cost labor in countries where worker protections are nonexistent. Garment workers endure long hours, unsafe conditions, and low wages. In some supply chains, child labor and forced labor have been documented, particularly in China.
While there are increasing global efforts to regulate fast fashion through government legislation and industry-led initiatives, the movement is still developing, and enforcement can be inconsistent.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has nominated Mohammad Hatem as its new President for the 2025–27 term. The association has also elected Fazle Shamim Ehsan as its new Executive Vice President.
These new directors were designated at the association’s headquarters in Narayanganj. The association received a total of nine nomination forms for nine leadership positions, including President, Executive President, Senior Vice President, Vice President (Finance), and five Vice Presidents.
The final list of candidates was published after a review of these submissions. As all nominees were unopposed, each was elected without contest.
The five newly elected Vice Presidents include Md Samsuzzaman, Gowher Siraj Jamil (representing Chattogram), Ashiqur Rahman, Fakir Kamruzzaman Nahid, and Mohammad Rashed.
The burgeoning trade relationship between India and Bangladesh has hit a turbulent patch, marked by a series of retaliatory trade restrictions that threaten to disrupt established supply chains, inflate costs, and potentially undermine regional economic integration. Following Bangladesh's imposition of curbs on Indian yarn exports via land, India has responded with stringent port restrictions on a wide range of imports from its eastern neighbor, most notably ready-made garments (RMG), a cornerstone of Bangladesh's export economy.
The directive issued by India's Directorate General of Foreign Trade (DGFT) on May 17, 2025, mandates that all RMG imports from Bangladesh must now enter India through the distant seaports of Nhava Sheva (Mumbai) and Kolkata, effectively closing the previously efficient and cost-effective land routes. This measure extends to several other commodities, including fruits, processed food items, cotton yarn waste, certain plastic and PVC goods, and wooden furniture, which will no longer be permitted through Land Customs Stations (LCSs) and Integrated Check Posts (ICPs) in key border regions. Essential goods like fish, LPG, edible oil, and crushed stone remain exempt from these restrictions.
Bangladeshi Exporters Brace for Impact: Higher costs and delays loom
Bangladeshi exporters are voicing significant concerns over the implications of these restrictions. The shift from a 2-3 day transit time via land to the potentially weeks-long sea journey, coupled with increased handling and port charges, is expected to substantially inflate logistics costs. This will erode the competitive edge that Bangladeshi apparel manufacturers currently enjoy in the Indian market.
A former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) emphasized that the extended lead times and higher expenses would inevitably lead to a decrease in overall export volumes to India. He cautioned that such protectionist measures, especially in the current global economic climate, would inflict further damage on trade between the two nations.
India's Rationale: Addressing trade imbalances and protecting domestic industry
The Indian government justifies its actions as a necessary response to what it perceives as unfair trade practices by Bangladesh. Dhaka's earlier restrictions on Indian yarn exports via land routes had already disrupted the supply chain for Indian manufacturers. Sources within the Indian government point to the significant duty-free access granted to Bangladeshi apparel (over ₹6000 crore annually, approximately $800 million USD) while highlighting barriers faced by Indian exporters.
"This measure was essential to address the growing imbalance in our trade with Bangladesh, where we were witnessing a surge in duty-free apparel imports while our own textile exports faced hurdles," stated an official at AEPC. "While we value our trade relationship with Bangladesh, it must be based on principles of reciprocity and fairness. These restrictions will provide a level playing field for our domestic garment manufacturers and encourage self-reliance."
Santosh Katariya, President CMAI, stated, “CMAI welcomes the Government’s decision to restrict garment imports from Bangladesh through land ports. This move addresses the industry’s long-standing concern regarding the unchecked inflow of low-cost apparel into the Indian retail market, which was adversely impacting domestic manufacturers, particularly MSMEs. The decision is a timely step towards preventing the dumping of foreign-made garments and strengthening India’s self-reliance in apparel production." Katariya also emphasized the need for complementary measures, adding, "At the same time, we believe this policy must be complemented with continued support for capacity building and ease of doing business for Indian manufacturers. Enhancing the competitiveness of our MSMEs is critical to fully harness the opportunities created by such progressive trade measures.”
However, this perspective is not universally shared within the Indian industry. Sanjay K Jain, Chair of the ICC National Textiles Committee, cautions against escalating trade tensions. "We need to tread very carefully as being neighbours," he stated. "We enjoy a very close and sensitive relationship with each other. One measure by one country is leading to a countermeasure by another country and that is countered again which makes the rift deeper and deeper and takes us more and more away from free trade as smooth flow of goods based on necessity and requirement between both countries is very important." Jain emphasized the need for de-escalation, suggesting, "both sides need to discuss in one meeting & unwind measures taken by both sides. Yarn and garment restrictions on both sides need to be undone immediately to build confidence."
Furthermore, India aims to curb the alleged "backdoor entry" of Chinese fabrics into its market. These fabrics, reportedly imported duty-free into Bangladesh, were then processed into garments and exported duty-free to India, circumventing Indian import duties on Chinese textiles (20%). The new restrictions, by increasing the cost and complexity of this route, are intended to plug this loophole.
The move also aligns with India's "Atmanirbhar Bharat" (Self-Reliant India) initiative, aiming to boost domestic manufacturing. By making imports from Bangladesh more expensive and time-consuming, the government hopes to incentivize Indian retailers to source more from local producers. Estimates suggest that ₹1000-2000 crore (approximately $133 - $267 million USD) worth of apparel imports from Bangladesh could be replaced by Indian-made goods.
The Cost Advantage Conundrum: A double-edged sword for India
However, the effectiveness of India's retaliatory measures is complicated by the fundamental cost advantages held by Bangladeshi apparel manufacturers, as highlighted in previous reports. Lower labor costs, subsidized power, duty-free access to Chinese fabrics, and export incentives provide Bangladeshi producers with a significant 10-15% price edge. This makes it challenging for Indian retailers to readily switch to domestic suppliers without impacting their profit margins or increasing prices for consumers.
Impact on Stakeholders: A mixed bag of consequences
|
Stakeholder |
Potential Impact |
|
Bangladeshi Exporters |
Increased logistics costs, longer transit times, potential decrease in export volumes to India, erosion of competitive advantage. |
|
Indian Retailers |
Supply chain disruptions, potential increase in sourcing costs, difficulty in finding cost-competitive domestic alternatives, potential pressure to raise consumer prices. |
|
Indian Manufacturers |
Potential increase in demand, opportunity to capture a larger share of the domestic market, but may face challenges in scaling up production and matching the price competitiveness of Bangladeshi imports in the short term. |
|
Indian Consumers |
Potential for higher prices on apparel, possible reduction in the availability of certain product categories in the short term due to supply chain adjustments. |
|
Regional Trade |
Increased friction in bilateral trade, potential for a negative impact on overall regional economic integration and cooperation, erosion of trust between trading partners. |
|
Logistics Sector (India) |
Increased business for seaports (Nhava Sheva, Kolkata) and related transportation services, but potential strain on port infrastructure and increased congestion. |
Case Studies: Ground-Level disruptions
● Indian Apparel Importers in Tirupur: Many small and medium-sized apparel importers in textile hubs like Tirupur rely on the quick turnaround and lower costs associated with land-based imports from Bangladesh, particularly for stock lots and fast-fashion items. These businesses now face significantly higher transportation costs and longer lead times, potentially impacting their profitability and competitiveness against larger players with established sea-based supply chains.
● Cross-Border Manufacturing Units: Several Indian textile companies had established manufacturing units in Bangladesh to capitalize on the lower production costs and duty-free export access to India. These units now face uncertainty regarding their supply chain logistics and may need to re-evaluate their operational strategies in light of the increased costs associated with sea-based imports into India.
Navigating a Thorny Path Forward
The current trade impasse underscores the complexities of managing bilateral economic relationships, especially when significant cost differentials exist. While India's concerns regarding trade imbalances and the need to protect its domestic industry are valid, the retaliatory measures risk creating significant disruptions and potentially harming Indian consumers and retailers.
Experts suggest that a more constructive approach would involve open dialogue and negotiation between the two nations to address the underlying issues. This could include exploring ways to enhance the competitiveness of the Indian textile sector, streamlining customs procedures, and fostering greater transparency in trade practices. Unilateral retaliatory measures, while providing a short-term response, may ultimately prove counterproductive in the long run, potentially damaging the trust and cooperation that underpin regional trade and economic growth. The focus should shift towards finding mutually beneficial solutions that promote fair trade and sustainable economic development for both India and Bangladesh.
Apparel Group, a leading fashion and lifestyle retail conglomerate, has unveiled Koton’s reimagined concept store at Dubai Mall, marking a strategic milestone in the brand’s expansion across the Gulf region. Situated on the first floor of one of the world’s top shopping destinations, the store introduces an elevated retail identity focused on women’s and teen fashion.
The refreshed concept reflects Koton’s global brand evolution and Apparel Group’s commitment to strengthening international partnerships. Featuring a modern layout, immersive visual merchandising, and trend-led seasonal collections, the store is tailored to the tastes of the UAE’s dynamic fashion consumers.
Neeraj Teckchandani, CEO of Apparel Group, stated, “This milestone reinforces our vision of driving global brand growth through regional excellence. The GCC retail landscape is shifting rapidly, and Koton is ideally positioned to lead in the value-driven fashion segment.”
Koton Chairman Yılmaz Yılmaz emphasized the strategic significance of the Gulf region, noting, “Dubai Mall is a prestigious location for our new concept launch. Our collaboration with Apparel Group sets a strong foundation for continued growth. We also plan to launch Koton.com in the region and open nine new stores by the end of 2025.”
Koton currently operates 18 stores across the UAE, Saudi Arabia, and Bahrain. Expansion plans include market entries into Kuwait, Oman, and Qatar. Globally, Koton runs 449 stores in over 70 countries, offering affordable fashion with a strong focus on sustainability and women’s empowerment.
The Dubai Mall launch underlines Apparel Group’s pivotal role in driving Koton’s growth in the Gulf’s high-potential retail sector.
India anticipates a significant rise in textile exports to the United Kingdom following the recent signing of a Free Trade Agreement (FTA) with the nation, said Giriraj Singh, Union Textiles Minister at Moneycontrol’s Powering Bharat Summit 2025.
The Minister stated, he expects textile exports to the UK to rise from $1.5 billion to $5 billion. However, this increase will be rapid, not gradual, he added.
He attributed the anticipated export growth to the tariff reductions outlined in the FTA, emphasizing how competitors such as Bangladesh and Vietnam had previously gained an advantage in the global textiles market by entering into similar free trade agreements.
Earlier this month, India and the UK finalized a Free Trade Agreement (FTA), representing a major trade deal between the two countries that follows a period of global trade uncertainty. The FTA eliminates the existing 12 per cent tariff on Indian textile exports to the UK. This zero-duty access is projected to substantially improve the price competitiveness of Indian goods in a key market.
The India-UK FTA signifies a significant step in their bilateral trade relationship. It is the first comprehensive agreement signed between the two nations after years of discussions and occurs at a time when India is actively working to broaden its export markets and lower tariff barriers through bilateral trade agreements.
Singh also highlighted India’s robust textile value chain. India has comprehensive, end-to-end solutions in textiles, he said, adding that the government is dedicated to meeting the clothing demands of the country’s expanding population.
Addressing concerns about competition from nations like Bangladesh and Vietnam, Singh asserted, India possesses the required infrastructure, investment support, and workforce.
Prime Minister Narendra Modi has ensured sufficient investment in the textile sector. There is no shortage of labor in India, he stated.
The new FTA is expected to benefit not only Indian exporters but also to stimulate employment in textile manufacturing centers across various states.
Continuing their upward trajectory, India's Textile & Apparel (T&A) exports grew by 7.45 per cent in April 2025 compared to the same month of the previous year. This positive trend was driven by the strong performance of the apparel segment, which increased by 14.43 per cent Y-o-Y during the month, as per a report by the Ministry of Commerce.
Rakesh Mehra, Chairman, Confederation of Indian Textile Industry (CITI) says, the current 14.43 per cent growth in apparel exports seems to be mainly driven by increased shipments to the United States, following the announcement of reciprocal tariff measures by the US administration.
Welcoming the signing of the India–UK Free Trade Agreement (FTA), Mehra says, it will provide a further impetus to India’s T&A exports by improving market access of Indian products in the UK market.
In April 2025, Indian textile exports increased by 2.61 per cent while apparel exports grew by 14.43 per cent to $ 1.37 billion mark compared with $ 1.2 billion in April last year.
Compared to the corresponding month in 2023-24, India’s T&A sector grew by 6.3 per cent in 2024-25, as per figures released by the Commerce Ministry.
GHCL Textiles has appointed Marshal Rajendra Kumar Sonavane as its new Chief Executive Officer (CEO), effective June 1, 2025. He will succeed R Balakrishnan, who has been with GHCL for over 20 years and played a key role in driving the company’s transformation and growth.
Having originally joined GHCL as Chief Strategy Officer on January 1, 2025, Marshal has now been promoted to CEO of GHCL Textiles. In his new role, he will lead the company’s strategic and operational initiatives, focusing on innovation and strengthening its position in the market.
A graduate of BITS Pilani with a degree in Mechanical Engineering, Marshal also holds an MBA in Finance and Marketing from XLRI Jamshedpur. He brings over 14 years of diverse experience across industries, known for blending strong strategic thinking with hands-on execution. His appointment signals GHCL Textiles’ commitment to long-term growth and leadership excellence.
RS Jalan, Non-Executive Director, GHCL Textiles, says, Sonavane’s extensive industry expertise and forward-looking approach are a perfect match for the company’s vision of innovation and progress. GHCL Textiles is expected to reach new milestones and continue on a path of sustainable and inclusive growth under his leadership.
Prior to joining GHCL, Marshal held leadership positions at several leading firms, including Arvind Limited, YCP Auctus, and Accenture Management Consulting.
