Dear Friends,

The global textile industry in 2025 continues to operate in a challenging environment marked by macroeconomic volatility, inflationary pressures, and evolving consumer behaviour. Weak demand in major markets, coupled with geopolitical tensions, has disrupted supply chains and dampened trade sentiment. Rising input costs — particularly in raw materials, energy, and logistics — have eroded margins, while sustainability compliance and traceability requirements have increased operational complexity. 

The industry is undergoing a rapid technological transformation, with digitalisation, automation, and circular production becoming central to long-term competitiveness. Yet, adoption remains uneven, particularly among small and medium enterprises. In addition, labour shortages and skill gaps persist across key textile clusters globally. Amidst these headwinds, the sector must focus on innovation, efficiency, and sustainability to sustain growth and retain relevance in global value chains. 

Addressing the Structural Gaps 

At the Council, a concerted effort is being formalised to sensitise the Government to the structural gaps and inefficiencies observed across the textile value chain. As the Chairperson of the Committee on Structural Reforms, I am privileged to lead the preparation of a comprehensive report that will present actionable measures to foster global competitiveness and sustainable growth. 

The Committee comprises the Council’s Executive Director as Member Secretary, along with distinguished industry leaders and representatives from other Export Promotion Councils as honorary Members. The report aims to identify specific reform areas across fibre, fabric, processing, technology, finance, and logistics that can enhance integration, productivity, and scale.

I take this opportunity to invite the industry and trade fraternity to share their valuable insights and recommendations. These inputs will be instrumental in shaping a credible reform roadmap that reflects on-ground realities and aligns with India’s long-term vision to build a resilient, technology-driven, and globally competitive textile ecosystem.

Indo-US Trade Talks

On the trade front, India and the United States are working towards a comprehensive bilateral trade agreement aimed at enhancing commerce, diversifying exports, and strengthening supply chain resilience. While there is notable progress, both sides are carefully addressing structural sensitivities to ensure that the eventual framework is mutually beneficial and inclusive. A balanced approach will be critical to securing durable gains for the Indian textile and apparel industry.

Ministerial Visit to Russia

Hon’ble Minister of State for Textiles and External Affairs, Shri Pabitra Margherita, undertook a three-day visit to Russia in October 2025, underscoring India’s commitment to expanding textile cooperation with strategic partners. During the visit, he expressed India’s intent to deepen engagement with the Russian textile and apparel industry, covering trade, technology collaboration, and skilled manpower exchange. The Minister also interacted with Indian textile workers in Russia and inaugurated the “Best of India – Indian Apparel and Textile Fair” in Moscow from October 1–3, which showcased India’s diverse range of fabrics, home textiles, and apparel to Russian buyers and distributors.

Trade Data 

Trade data for April–September 2025 indicates a marginal decline of (-) 2.57% in cotton textile exports, while apparel exports grew by 3.42%, demonstrating resilience in the garmenting segment.

During September 2025, textile exports declined by (-) 10.45% and apparel exports by (-) 10.14% year-on-year, reflecting sluggish global demand and inventory corrections.

Cumulatively, during April–September 2025, textile exports fell by (-) 1.85%, while apparel exports recorded 3.42% growth, resulting in an overall T&A growth of 0.39% — signalling modest recovery despite headwinds.

Trade Promotion

The Council continued its efforts to strengthen market outreach and member engagement. It facilitated member participation in the E-Meet organised by Texzone Information Services, in collaboration with HGH India — India’s leading trade show for home products — and World of Sleep, the country’s first consumer-oriented exhibition on sleep solutions. These initiatives were aimed at highlighting India’s growing strength in the home furnishings and lifestyle textile segments, and at promoting greater visibility for Indian brands in emerging global categories.

Policy Advocacy

The Ministry of Textiles has introduced amendments to the Production Linked Incentive (PLI) Scheme for Textiles, effective immediately upon notification. The revised framework has added eight new HSN codes for MMF apparel and nine new HSN codes for MMF fabrics, expanding eligibility and encouraging diversification. Furthermore, the deadline for new PLI applications has been extended until 31 December 2025, allowing additional time for industry participation.

The Council appreciates the constructive approach of the Ministry of Textiles, RBI, Ministry of Commerce & Industry, and DGFT for positively considering the Council’s representations — particularly those related to easing compliance and providing procedural relaxations for MSMEs and e-commerce exporters.

Kasturi Cotton Bharat Promotions

Under the national branding initiative Kasturi Cotton Bharat, the Council actively promoted India’s premium cotton identity through strategic outreach and awareness campaigns. I sincerely appeal to all our members to join us in promoting “Kasturi Cotton” brand among all users across the value chain.

The Council participated in the High-Level Workshop on “Enhancing Cotton Value Chain Development by Focusing on Quality, Productivity, Production, and Market Access” at the Indian Institute of Management (IIM) Nagpur on 11 October 2025, organised by SMART, MITRA, and VSTF. On this occasion, the Council presented Kasturi Cotton T-shirts and TEXPROCIL’s 70th Year Souvenir to Hon’ble Minister of State for Agriculture, Maharashtra, Adv. Ashish Jaiswal, in the presence of over 150 stakeholders from the cotton value chain.

To mark World Cotton Day, the Council also participated in a special event organised by the Sardar Vallabhbhai Patel International School of Textiles and Management (SVPISTM) in Coimbatore, celebrating India’s achievements in the cotton sector and promoting awareness of sustainability, value addition, and traceability under the Kasturi Cotton Bharat programme.

Way Forward

The path ahead for India’s cotton textile industry lies in fostering sustainable cultivation, cleaner production practices, and value-added innovation. Future competitiveness will depend on the widespread adoption of organic and improved cotton varieties, efficient water management, and reduced chemical dependency. Strengthening branding, promoting circular fashion, and expanding into niche and premium global markets will enhance India’s market positioning.

With consumers and regulators worldwide prioritising sustainability, India must accelerate international collaboration, fair trade practices, and skill development to meet evolving standards. The Council remains committed to supporting these objectives — by intensifying market outreach, fostering global partnerships, and expanding the adoption of Kasturi Cotton Bharat across the textile value chain.
Together, let us reaffirm India’s leadership in global textiles — anchored in quality, innovation, and trust.

:: TEXPROCIL ::