Latest news with #ICCNationalTextilesCommittee
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
With CETA signed, Indian garment industry expects a boost in exports
Indian textile and apparel industry is expecting that its share will increase in the United Kingdom once the Comprehensive Economic and Trade Agreement (CETA) comes into force. Under the CETA, signed on Thursday in London, India's garment and textile exports will get duty free access to the UK, as it is considered a labour-intensive sector. As of now, India's neighbouring nations like Bangladesh, Pakistan, Cambodia and Myanmar have preferential access to UK's market and their garments are treated duty free at ports. With the signing of the agreement, Indian textile and apparel products will be better able to compete with other countries like Bangladesh and China. Indian textile and apparel items presently face 8-16 per cent duty on various products. Hence, industry stakeholders now want the CETA to be operational at the earliest possible date. India's textile and apparel industry anticipates a surge in exports to the UK as the Comprehensive Economic and Trade Agreement ensures duty-free access. This levels the playing field with nations like Bangladesh and Vietnam. Industry leaders expect India's market share to nearly double, with rising demand for both traditional and sustainable products. Sanjay K Jain, Chairman ICC National Textiles Committee and Managing Director, TT Ltd told Fibre2Fashion, 'The trade deal will boost India's market share from current 5-6 per cent to 10 per cent in the next two years. India and the UK are very close since long, and there is no language barrier. Therefore, the agreement will give great benefit to the Indian textile and garment industry.' Jai Krishna Pathan, President of Mumbai Yarn Merchant Association said, 'Due to the agreement, some amount of garment production is likely to shift to India from Bangladesh. However, upstream textile products like fabric and yarn may not see such huge benefit. But, if garment exports to the UK increases, fabric and yarn industry will get indirect support.' RK Vij, emeritus President of the Textile Association of India (TAI) and Secretary General of Polyester and Apparel Industry Association (PTAIA) commented, 'The long pending agreement is a new chapter for the entire value-added textile chain. Indian Garment and home textile industry may get boost in the UK's market. The agreement is likely to boost investment under government schemes like PM MITRA and PLI scheme as the industry will plan for expansion to tap new opportunities. The arrangement should come into effect at earliest possible.' Santosh Katariya, President, Clothing Manufacturers Association of India stated that the agreement opens up a significant opportunity for the export sector. Given the large Indian diaspora in the UK, it will also boost domestic manufacturers of Indian ethnic apparel to venture into exports. "Since imports of apparel from the UK are likely to be in the luxury and high-priced category, I am confident of the Indian domestic manufacturers' ability to face the increased competition,' he said. Dr. Vivek Tandon, Founder, revalyu Group said, 'The India–UK Free Trade Agreement is a transformative milestone for India's manufacturing and export landscape, ensuring zero-duty access on nearly all goods for both nations. Removal of duty will create a level playing field with major exporters like Bangladesh and Vietnam boosting bilateral trade by an expected £25?billion per annum by 2040. Among those most poised to benefit is India's textile and garment industry, which is projected to double exports to the UK over the next five to six years, driven by an anticipated 11?per cent annual growth.' For emerging sectors like recycled polyester and circular textiles, this deal opens a new frontier. UK brands increasingly demand sustainable fabrics, and with zero-duty access, Indian recycled PET yarn can now compete globally, fuelling a shift towards eco-conscious fashion and strengthening India's position in the circular economy,' he added. Meanwhile, the latest trade data indicates that UK's apparel imports from India grew 10.35 per cent to reach $619.049 million during January-May 2025. India was the third largest sourcing nation after Bangladesh and China. Both nations have supplied around 23.03 per cent and 22.60 per cent garment (in value) in the UK's total garment imports of $8.033 billion in the same period. UK's apparel imports from India grew at a faster pace than the total garment imports, which grew 7.49 per cent from the shipment of $7.473 billion in the corresponding period of the last year, according to sourcing intelligence tool TexPro. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
19-05-2025
- Business
- Fibre2Fashion
Local industry eyes gains as India restricts Bangladesh RMG imports
Although the latest restriction on imports of readymade garments (RMG) and textiles from Bangladesh is a result of reciprocity and geopolitical tension, the Indian government has fulfilled the domestic industry's longstanding demand. Industry leaders have not only hailed the decision but also expressed hope of benefitting from the restriction. It is to be noted that the Indian government had given duty-free access to its neighbouring country during the regime of former Prime Minister Sheikh Hasina. The country's liberal trade policy boosted the Bangladeshi garment industry. Indian trade organisations have been demanding an end to duty-free access so they can compete on a level playing field. However, the regime change in Bangladesh has strained bilateral relations. The Indian government's latest move is a reciprocal measure following Bangladesh's restrictions on Indian yarn imports through land routes. India has imposed restrictions on imports of garments and textiles from Bangladesh, addressing long-standing demands from its domestic industry. The move follows Bangladesh's earlier restrictions on Indian yarn imports. Industry leaders expect trade benefits worth ₹1,000-2,000 crore and a reduction in backdoor Chinese fabric entries. The decision aims to support India's garment manufacturing sector. India's prominent groups and retailers have been importing cheaper garments from the neighbouring country, according to industry sources. Sanjay K Jain, chairman of the ICC National Textiles Committee, told Fibre2Fashion , 'Currently, India continues to give duty-free access to Bangladesh. It is supplying garments and other textiles worth more than ₹6,000 crore (~$702 million) annually.' Media reports suggested that more than a dozen trucks are stuck on the Bangladesh side awaiting entry into India, as the government imposed the import restrictions with immediate effect on the intervening night of May 17 and 18. The last truck carrying garments entered India on May 17 and belonged to a large Indian group. Jain commented on the development, 'India hit back against the restrictions by Bangladesh on yarn imports via land routes by restricting apparel imports through the same route. This will increase import costs and shipment times, making it difficult for smaller importers to continue importing garments.' He added, 'We can expect trade benefits worth ₹1,000-2,000 crore by replacing Bangladeshi garments with Indian products. Buyers will be impacted temporarily and will have to bear higher import costs. They will need to realign their supply chains and shift their sourcing to Indian suppliers.' Jain also noted that the move would help reduce the backdoor entry of Chinese fabrics into India through Bangladesh. Chinese fabrics were being converted into garments in Bangladesh to obtain duty-free access to India. Direct imports of Chinese fabrics attract a 20 per cent import duty. K M Subramanian, president of the Tiruppur Exporters' Association , said, 'Indian government has taken a step in the right direction as the domestic garment manufacturers have been affected due to duty free import from Bangladesh. Cheaper imports from Bangladesh were leading to flooding in domestic market. It also paved the way for Chinese fabric after being converted to garments in Bangladesh. The move will restrict such imports and will support domestic garment manufacturing industry.' Fibre2Fashion News Desk (KUL)
