With the upcoming Union Budget expected to be an interim one, Indian textile and apparel industry is keeping its fingers crossed, hoping for measures that will provide much-needed fillip to the sector. Key industry bodies like AEPC, TEXPROCIL, SRTEPC, and CMAI have submitted their wishlist to the government, urging for measures to bolster their competitiveness and navigate challenges. What they want…

GST Uniformity across MMF value chain

A of the key demand from AEPC is the standardization of GST rates across the entire Man-Made Fibre (MMF) value chain. The current disparity – 18 per cent on fibre, 12 per cent on yarn and 5 per cent  on fabric - leads to unutilized input credit and liquidity issues for Micro, Small & Medium Enterprises (MSMEs). A uniform 5 per cent rate, as proposed by AEPC, could ease cash flow and spur manufacturing.

Extension of Interest Equalization Scheme beyond March 2024

Another key demand is the extension and expansion of the Interest Equalization Scheme (IES) for the textile sector. The IES currently provides subsidized interest rates on loans for exports of made-up garments and home textiles. However, the scheme is set to expire in March 2024. The industry is requesting the government to extend the IES for at least another five years and expand its scope to cover all segments of the textile and apparel value chain. This would make Indian exports more competitive in the global market and boost domestic manufacturing. The industry is also seeking an expansion of the IES to cover a wider range of textile products and to address regional imbalances in the scheme's benefits.

AEPC suggests raising the rate to 5per cent for all apparel exporters, making pre and post-shipment Rupee export credit more accessible and boosting international competitiveness. Currently, the rates vary between 2 and 3 per cent, depending on the exporter category and product listings.

Promoting sustainable practices and branding

TEXPROCIL has highlighted the need for tax concessions for apparel manufacturers adopting Environmental, Social, and Corporate Governance (ESG) practices and adhering to international quality standards. This would incentivize sustainable production and attract conscious consumers. Additionally, budgetary support for branding and marketing ‘Made in India’ products is deemed crucial to compete effectively in the global market.

Focus on MSMEs and Skill Development

The SRTEPC, representing the synthetic and rayon textiles sector, advocates for additional support for MSMEs. Measures like easier access to credit, simplified compliance procedures, and skill development programs could significantly empower these enterprises.

Technological Upgradation and Research & Development

The Indian textile industry faces stiff competition from countries like Bangladesh and Vietnam, which have lower production costs and a more skilled workforce. To bridge this gap, the industry is seeking government support for technological upgradation and skill development initiatives. CMAI, representing garment manufacturers, highlights the importance of technological advancements and R&D initiatives. Budgetary allocations for upgrading machinery, adopting automation, and promoting R&D would enhance the industry's efficiency and innovation..

Boosting domestic market

Beyond exports, stimulating domestic demand is key. Tax cuts on textiles, increased government procurement of uniforms, and consumer awareness campaigns are all on the industry's wish list. These measures would help Indian textiles take a positive foot forward.

The upcoming interim budget though temporary, holds immense significance for the textile and apparel industry, especially considering the upcoming general elections. The government's response to these demands will be closely watched, as it could shape the sector's growth trajectory in the near future.

It's important to note that the interim budget typically covers the fiscal needs until the new government takes office after the elections. Therefore, its focus is often limited to essential expenses and immediate concerns. While long-term policy changes may not be announced, significant measures addressing the industry's immediate challenges could offer a much-needed boost.

After three dynamic days showcasing the latest in textile innovation and fashion trends, the international fabric show, Munich Fabric Start, concluded its Spring.Summer 2025 edition. With the denim trade show Bluezone and the innovation hub Keyhouse closing their doors earlier, the event provided a comprehensive overview of the evolving landscape of the European fashion industry.

Clarity in focus: A recap of the event

Under the overarching theme of "Clarity," the event gathered designers, buyers, product managers, and decision-makers to explore offerings from around 1,000 international suppliers across eight distinct areas. These areas, including Additionals, Fabrics, ReSource, Bluezone, Design Studios, Keyhouse, Sustainable Innovations, and The Source, served as focal points for discussions and engagements.

With a notable attendance of 11,700 visitors from 58 countries, Munich Fabric Start attracted renowned brands like adidas, BMW, C&A, Hugo Boss, and many others. The event's diverse audience highlighted its significance as a global platform for industry networking and collaboration.

Insights and perspectives: Voices from the industry

Sebastian Klinder, Managing Director of Munich Fabric Start, emphasized the importance of clarity and orientation in the current industry landscape. He underscored the event's role in providing a space for business, inspiration, and interaction, essential for navigating the future of fashion.

Trends and developments for Spring.Summer 2025

A return to craftsmanship and clear shapes marked one of the significant trends observed for the upcoming season. Denim, a perennial favorite, remained omnipresent, reflecting its versatility across various styles and price ranges. Additionally, natural materials such as linen and hemp gained prominence, particularly in casual workwear, alongside pastels and earthy tones.

Focus on sustainability: Bridging innovation and practice

Sustainability emerged as a central theme, with a dedicated focus on innovative fibers, recycling initiatives, and EU regulations shaping the industry's future. Platforms like Keyhouse played a crucial role in facilitating dialogue and collaboration between stakeholders, fostering the transition towards a more sustainable fashion ecosystem.

Highlights from Bluezone: Driving sustainable practices

Bluehouse, the denim hot spot, showcased the industry's commitment to sustainability through initiatives like the Denim Deal, which promotes the use of recycled materials in textile products. Personal encounters and exchange of ideas characterized events like Munich Fabric Night, emphasizing the importance of collaboration in driving industry-wide change.

Looking Ahead: View Premium selection

As the industry gears up for the Autumn.Winter 25 season, the upcoming View Premium Selection event in June promises to offer insights into future trends and innovations. With a focus on fabrics, denim, sportswear, and design, it serves as a vital platform for quick ordering and industry developments.

Industry voices: Perspectives on Munich Fabric Start

Key stakeholders, including designers, project managers, and industry specialists, shared their experiences and insights on the event. From the significance of sustainable innovations to the value of platforms like Keyhouse, their voices underscored the collaborative spirit driving positive change within the industry.

Conclusion: Driving transformation through collaboration

As the curtains close on Munich Fabric Start Spring.Summer 2025, the event leaves behind a legacy of clarity, sustainability, and collaboration. With a renewed focus on craftsmanship, innovation, and responsible practices, the European fashion industry sets its sights on a future defined by clarity of purpose and a commitment to sustainability.