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A look at the growing potential of India's fashion, apparel, and textile trade with ASEAN countries
India's relationship with the Association of Southeast Asian Nations (ASEAN) is blossoming, driven by the 'Act East Policy' and a shared vision for economic growth. Here is a look at the exciting potential for collaboration in the fashion, apparel, and textile sectors, drawing insights from the provided article, current data, and expert opinions.
India-ASEAN trade partnerships
In India-ASEAN trade, apparel and textiles are key sectors and it is driven by several factors. Uppermost is the complementary economies as India's strength in raw materials and skilled labor complements ASEAN's manufacturing prowess and growing consumer markets. The India-ASEAN Free Trade Area (AIFTA) has significantly reduced trade barriers, boosting bilateral trade. Also, they have shared cultural heritage and aesthetics that facilitate a deeper understanding of consumer preferences. And initiatives like UPI-PayNow linkage enhance financial transactions, making cross-border trade smoother.
In fact, Singapore's robust trade and investment relationship with India exemplifies the potential for collaboration. As the largest source of FDI into India, Singaporean companies are actively investing in India's fashion and textile industries. On similar lines, platforms like Shopee and Lazada are witnessing an increase in cross-border fashion trade between India and ASEAN. Indian ethnic wear and textiles are gaining popularity in Southeast Asia, while ASEAN's trendy apparel finds a market in India.
Table: India ASEAN trade overview
|
Indicator |
Value |
|
India-ASEAN total trade (2018-19) |
$96.79 bn |
|
Projected India-ASEAN total trade (2025) |
$300 bn |
|
Cumulative FDI from Singapore to India (2000-2024) |
$ 159.94 bn |
|
ASEAN's projected growth rate (2024) |
4.60% |
The way forward
However, despite the collaborations there are some challenges in future growth. Non-tariff barriers are bug bear as technical regulations and standards can hinder trade. Harmonization efforts are crucial. Improving connectivity and streamlining supply chains are must to further enhance trade efficiency. Simultaneously, promoting ethical sourcing and sustainable production practices is essential for long-term growth.
The Northern India Textile Mills’ Association (NITMA) is urging the government to implement a Minimum Import Price (MIP) across all of Chapter 60 to effectively curb unchecked fabric imports. This call comes as domestic manufacturers struggle to compete against a rise in cheaper imports, often facilitated by fraudulent practices. NITMA has appealed to Prime Minister Narender Modi for intervention, citing significant financial losses to both the industry and the government.
NITMA is specifically targeting under-invoicing of synthetic knitted fabrics under Chapter 60 and the misdeclaration of HS codes at Indian ports. Despite existing MIPs on 13 HSN codes, imports continue to rise under non-MIP codes, rendering the current measures ineffective.
A recent crackdown by the Directorate of Revenue Intelligence (DRI) led to the seizing of 100 containers of Chinese fabric at Mundra Port, valued at an estimated Rs 200 crore. Falsely declared as low-cost fabric, the shipment actually contained high-quality textiles, indicating an attempt to evade import duties. The declared value of the shipment was Rs 25 crore, suggesting significant under-invoicing. Similar seizures have occurred at other major ports, including Nhava Sheva Port, raising concerns about widespread fraud.
The DRI has launched a nationwide investigation to identify those responsible for the illegal imports, trace the goods, and expose the network of importers involved. The Federation of Surat Textile Traders Association (FOSTTA) had previously warned the DRI about systematic misdeclaration in textile imports, alleging that thousands of containers are imported monthly under incorrect classifications to circumvent the MIP. FOSTTA estimates that this practice has resulted in a revenue loss of Rs 85,000 crore.
Importers are reportedly exploiting loopholes by shifting imports from Chapter 60 to Chapter 59, which currently lacks MIP safeguards. FOSTTA identified Mundra Port, Mundra SEZ, and Nandiambakkam SEZ as key entry points for these illicit imports, also naming suspected importers.
Sidharth Khanna, President, NITMA, points out, some importers are declaring fabric at approximately $1 per kg, while the actual global price is $4–6 per kg, further demonstrating the scale of under-invoicing. He emphasizes on the urgent need for stricter regulations to protect the Indian textile industry. The government now faces increasing pressure to address these loopholes and implement effective measures to safeguard domestic manufacturers from unfair trade practices.
A leading textile manufacturer, Nutech Global will exhibit its diverse range of high-quality fabrics at Colombiatex de las Américas 2025 in Medellín, Colombia, from January 28-30, 2025. The company will showcase its products at Stall No. BL086 in the Plaza Mayor Convention and Exposition Center.
An ISO 9001:2015 certified company, Nutech Global is a key player in the textile industry since 1984.The company specializes in synthetic suiting, shirting, uniforms, readymade garments, and home textiles. It has an annual production capacity of 4.80 million meters and serves both domestic and international markets, offering premium fabrics including 100 per cent cotton, polyester-cotton blends, polyester-viscose, and elastane/lycra.
A premier global textile trade fair, Colombiatex de las Américas connects industry leaders, innovators, and buyers. The event highlights Latin America’s unique offerings and fosters regional production linkages, adding value to the global textile industry.
According to Rohan Mukhija, Head-Business Development, Nutech Global, the event provides the company with an opportunity to not only showcase innovative fabric solutions to an international audience but also engage with global buyers, strengthen relationships, and explore new collaborations. The company continues to analyze emerging market trends and customize their offerings to meet evolving industry demands, he emphasizes.
Committed to textile innovation, Nutech Global combines cutting-edge technology with traditional expertise. The company’s customer-centric philosophy ensures, each of its fabrics meets stringent quality standards while also catering to diverse market needs in fashion, uniforms, home textiles, and performance fabrics. Furthermore, Nutech Global is dedicated to sustainability, embracing eco-friendly practices and responsible manufacturing to align with global standards and consumer expectations.
A primary driver of the apparel and footwear sales, the global sportswear market is projected to grow by 14.9 per cent from 2024-29.
As per a report by Euromonitor International, this growth will be fuelled by an increasing focus on health and wellness globally. Sportswear is fast becoming a staple in wardrobes worldwide as consumers increasingly focus on comfort and functionality.
Southeast Asia, Latin America, the Middle East and Africa regions are driving growth in global sportswear market as rapid economic growth and rising consumer spending in these regions offer brands significant growth opportunities.
With 33 per cent contribution, the Asia Pacific region is expected to register the highest growth in total value of apparel and footwear sales over this period.
In 2024, the global apparel and footwear market grew by 2 per cent as against 4.2 per cent growth registered by outerwear, 3.7 per cent by womenswear, 3.9 per cent by menswear and 5.9 per cent by footwear.
Till 2029, total global sales in these categories are forecasted to grow by 4.3 per cent as consumers preferences continue to shift with experience of shopping over the material value of goods being preferred.
The All Pakistan Textile Mills Association (APTMA) Southern Zone has strongly opposed the Economic Coordination Committee’s decision to raise gas tariffs for Captive Power Plants (CPPs) by 16.7 per cent, from Rs 3,000/MMBTU to Rs 3,500/MMBTU. APTMA warned that this move could severely impact Pakistan’s export-oriented textile sector, which contributes 60 per cent to the country’s total exports.
APTMA’s spokesperson, Naveed Ahmed, criticized the increase, calling it the ‘final nail in the coffin’ for an industry already grappling with high production costs and global competition. He highlighted that gas tariffs have rised by 311 per cent over two years, making energy costs prohibitively expensive. "With the highest energy costs in the region, coupled with high borrowing and taxation, Pakistani textiles are losing their competitive edge," he stated.
The tariff hike disproportionately targets CPPs while leaving other sectors, such as fertilizer and domestic users, unaffected, a move APTMA deems discriminatory. Ahmed noted that many industries in Sindh and Balochistan rely on gas-based CPPs due to unreliable grid electricity.
Ahmed further emphasized that billions of rupees have been invested in CPPs to ensure uninterrupted power supply, as grid electricity remains inconsistent and inadequate. He urged the government to reverse the tariff hike to protect export markets and meet growth targets set under the Uraan Pakistan Program.
APTMA called for fair energy policies, warning that without immediate action, Pakistan risks losing its hard-earned global textile markets.
An interactive workshop titled, ‘Handloom Conclave: Manthan,’ will be held on January 28, 2025, at Dr Ambedkar International Centre in Janpath, New Delhi. This gathering aims to bring together key stakeholders in the Indian handloom sector, including weavers, manufacturers, retailers, and entrepreneurs, to discuss strategies for growth and achieve the Prime Minister's vision of ‘Farm to Fibre to Factory to Fashion to Foreign.’
Over 250 participants, including government officials, industry experts, and handloom beneficiaries, will attend this conclave featuring three key technical sessions. The first session at the conclave will on ‘Supporting the Handloom Startup Ecosystem.’ This session will explore government initiatives to foster a thriving environment for startups in the handloom sector.
The second session titled, ‘Handloom Marketing Avenues and Strategies’ will feature best practices and strategies from experienced panelists for effectively marketing handloom products. Titled, ‘Attracting Young Weavers,’ the third session will focus on strategies to make the handloom sector appealing to younger generations and create a sustainable value chain by leveraging technology and digital platforms.
The conclave will serve as a crucial platform for stakeholders to exchange ideas, share best practices, and collectively chart the future of the Indian handloom sector. By fostering innovation and collaboration, the event aims to enhance the livelihoods of weavers and position the handloom sector as a key driver of economic growth for ‘Viksit Bharat 2047.’
A few key attendees at the event will include Giriraj Singh, Union Minister of Textiles as the Chief Guest; Minister of State for Textiles as the Guest of Honor, Neelam Shami Rao, Textile Secretary, Development Commissioner for Handlooms, and government officials, industry experts, startup founders, handloom cooperatives, academicians, e-commerce platforms, retailers, and weavers.
The Pakistan Government has set an ambitious target of increasing its textile exports from the current $30 billion to $100 billion over the next five years.
To help achieve this, Imran Mehmood, Central Chairman of the All Pakistan Bed-sheets & Upholstery Manufacturers Association (APBUMA), urged the government to implement immediate measures to support the sector’s growth.
Textile exporters in Pakistan also achieved a significant milestone at the world’s largest textile trade fair in Frankfurt, Germany, Heimtextil as they secured export orders worth $3 billion.
Mehmood hailed this achievement as a major boost for Pakistan's textile sector. He emphasized on the critical role of Heimtextil for Faisalabad's year-round textile operations, highlighting its importance in securing vital orders.
The operating rate of direct-spun PSF plants in China is expected to plummet by around 20 per cent this week, falling below 70 per cent. This significant decline follows production cuts and suspensions at polyester yarn mills in key provinces like Fujian, Jiangsu, Zhejiang, and Hebei.
Furthermore, reduced operations at sewing thread companies in Hubei have exacerbated the situation, pushing polyester yarn operating rates to their lowest point this year.
Production estimates in China have been slashed by approximately 2.6 million tons. While PSF futures prices have declined, PSF plants are not facing major inventory issues, and prices remain relatively stable.
However, sluggish downstream demand and the uncertainty surrounding the upcoming Spring Festival holiday have prompted a cautious approach among market participants.
Imports of textiles and apparel into the US declined 6.6 per cent month-on-month in November 2024, totaling 9.99 billion square meter equivalents (SME), according to the Department of Commerce’s Office of Textiles and Apparel (OTEXA). Despite the monthly dip, imports rose 43.3 per cent year-on-year, with India emerging as a key growth driver.
Textile imports reached 8.06 billion SME in November, down 1.9 per cent from October but up 51.3 per cent annually. Apparel imports dropped 23.1 per cent from the previous month to 1.93 billion SME but climbed 17.5 per cent compared to the prior year.
For the first 11 months of 2024, cumulative textile and apparel imports rose 13.9 per cent year-on-year to 97.5 billion SME. Textile imports surged 16.9 per cent to 73.8 billion SME, while apparel imports increased 5.3 per cent to 23.7 billion SME. Over the 12 months ending November 2024, imports grew 13.8 per cent to 104.4 billion SME, driven by a 17.2 per cent rise in textiles and a 4.4 per cent uptick in apparel.
India led the annual growth, with imports soaring 137.7 per cent year-on-year to 1.69 billion SME in November. Egypt recorded an extraordinary 589.6 per cent increase, reaching 1.11 billion SME. China remained the largest supplier at 3.06 billion SME, though its imports fell 13.3 per cent monthly. Other notable performances included Malaysia (+20.1 per cent monthly) and the Czech Republic (+49.4 per cent monthly).
While imports from Vietnam and Turkey faced declines, India’s robust performance underscores its growing significance in the global textile supply chain.
A major textile hub in India, Sircilla has received a 4.24-crore meter cloth order for the Indira Mahila Sakti sari project. This government initiative aims to provide free saris to women in self-help groups while supporting local weavers.
Conferred by Ashok Rao, General Manager, TESCO, the order signifies the government’s renewed support for the local textile industry. Sircilla has previously similar orders for school uniforms.
Divided into phases, the project will complete weaving of the cloth until April 30 after which it will be transported to Hyderabad for printing, dyeing, and finishing. The saris are expected to be ready for distribution by June or July.
A key factor in the success of this project is the establishment of a new yarn bank in Vemulawada. This Rs 50-crore facility ensures a consistent supply of yarn for weavers, streamlining production and eliminating reliance on external traders.
Vital for the local economy, Sircilla's textile industry employs thousands directly and indirectly. Consistent orders from the government provide year-round employment to these weavers producing a significant portion of saris distributed to women's groups.
This 4.24 crore meter order is expected to provide Sircilla weavers with work for the next eight months, offering much-needed stability to the industry. Adepu Bhaskar, President, ircilla Polyester Association, says, signaling a positive future for Sircilla’s textile industry, the order will help stabilize the industry and prevent further worker suicides.
