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Dear
Friends,
The past fortnight marked a period of significant transformation for India’s textiles and clothing sector, steered by proactive Council engagement and landmark policy developments. In the face of global uncertainties, our industry continues to demonstrate agility, unity, and an enduring spirit, navigating both opportunities and challenges with purpose.
Trade Data
The quick estimates released by the Ministry of Commerce and Industry for the month of July 2025 shows that the exports of cotton yarn/fabrics/madeups, handloom products etc. from India grew by 5.17% in July 2025 over July 2024. However, during Apr – July 2025, Indian cotton yarn/fabrics/made-ups, handloom products have slightly declined by (-) 0.17%.
A comparison of month-on-month exports shows that during July 2025, Indian Textiles exports grew by 5.84% over the previous year while Apparel Exports registered a growth of 4.75% during the same time period. Cumulative Exports of Textiles and Apparel during July 2025 have grown by 5.37% over July 2024.
As concerns the cumulative exports, during Apr-July 2025, Indian Textiles exports have registered a positive growth of 0.77% over the previous year while Apparel exports registered a growth of 7.87% during the same time period. Overall T&A registered a growth of 3.87% during Apr-July 2025. While the trend above points to a resilient export performance, it remains to be seen how the exports will perform in the next quarter, especially in the wake of higher tariffs on Indian exports in to the US market.
Global Trade Opportunities and Headwinds
Amidst celebration of the India–UK Comprehensive Economic and Trade Agreement (CETA), providing zero-duty access to 99% of Indian export tariff lines (including textiles and clothing), the sector also confronts new tariff barriers from the United States.
President Trump’s announcement of a punitive 50% tariff on Indian textiles effective August 27, 2025, threatens US market share and employment.
The Council through representations made at various forums has urged the government to introduce sector-specific exemptions and policy relief measures to protect exporters.
Meanwhile, the India–Japan CEPA discussions and leadership participation in events like the Tokyo Trend Fair and bilateral meetings have sparked renewed momentum to position India-made value-added products in the competitive Japanese market.
Meeting with Hon’ble Finance Minister
On August 20, Mr Ravi Sam, Vice Chairman, TEXPROCIL, Mr Dinesh Nolkha, Vice Chairman CITI, Mr Venkat Ramaraj, MD Ramco and other representatives met the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, seeking exemption of duty on imported cotton—a decision vital for the sector’s raw material security.
During the meeting, the delegation advocated for extension of cotton duty exemption; restoring interest subvention scheme, establishment of a permanent window for duty-free imports; and rationalisation of GST rates for textiles. The Hon’ble Minister acknowledged these concerns and committed to examining industry feedback for further support.
We are glad that at the behest of the industry request the Government has now extended this exemption till 31.12.2025 for duty on imported cotton. This welcome step will ease raw material availability, lower costs and enhance competitiveness of our exports. The Council thanks the Government for this timely support.
Meeting with Hon’ble Minister of Textiles
The Ministry of Textiles convened an industry-wide consultation on August 13, launching four committees to focus on diversification of export markets; easing business and fiscal measures; structural reforms and cost competitiveness and innovation. I along with the Council’s Executive Director attended the meeting chaired by Hon’ble Minister of Textiles Shri Giriraj Singhji on 13th August 2025 at New Delhi.
In the discussions that followed, I stated that the industry is standing in support of the Government at this difficult juncture. However, we also need to recognize that the situation is grave and volatile and there is an urgent need to offer immediate short-term relief to the trade and industry.
Apart from the other fiscal measures, we also suggested that the State Governments should be requested not to take penal action in case of any factory closures or retrenchment of labour. We strongly advocated that the anomalies in RoDTEP rates should be rectified with immediate effect and the interest subvention scheme be urgently restored across the sector without any restrictions or limits.
TEXPROCIL@ Intex South Asia 2025
TEXPROCIL showcased India’s textile prowess by leading the “India Pavilion” at Intex South Asia 2025, Colombo. This premier regional sourcing fair facilitated robust connections between Indian and Sri Lankan apparel manufacturers.
The key highlights of the participation included group participation of 20 Indian companies under the MAI Scheme; promotion of Kasturi Cotton Bharat’s sustainability and traceability features; and engagements with top Sri Lankan buyers and brands
The event reinforced India’s status as a preferred raw material supplier and generated tangible leads for future collaborations.
Advancing Kasturi Cotton Bharat
The Council continued its flagship sustainability initiative, elevating Kasturi Cotton Bharat as the gold standard for Indian cotton. The Council also showcased Kasturi Cotton finished products at major international forums, securing global interest and co-branding opportunities. As an implementing agency for the Kasturi Cotton, the Council has facilitated expansion of the certified range to include extra-long staple varieties (34 mm+ and 35 mm+) with blockchain-based KC Track traceability. Continuing the promotions, the Council has launched nationwide farmer awareness campaigns using outdoor, radio, and digital platforms, engaging millions across seven key cotton-growing states.
A key highlight during the past fortnight was the domestic recognition achieved by ‘Kasturi Cotton’ through its special feature on “Kaun Banega Crorepati”, hosted by Shri Amitabh Bachchan on Sony Liv TV.
Thought Leadership: Trade Negotiations
The Council continues to facilitate member compliance with new government notifications on import duty exemptions, RoDTEP returns, and procedural clarifications for exporters.
The recent webinar organized by the Council on “Navigating India’s Global Negotiations Landscape,” brought together policy experts and senior officials to discuss evolving FTA frameworks, WTO negotiations, and strategic preparedness for future trade deals. Insights from this dialogue are shaping the Council’s advocacy and capacity-building initiatives for the sector.
I earnestly appeal to all members and small exporters to renew their membership subscriptions, avail group participation benefits in overseas events, and contribute to knowledge-sharing initiatives through newsletter submissions and participation in Council activities.
Looking Ahead
As we navigate this complex trade environment—marked by both breakthroughs and barriers—it is imperative to remain agile, quality-focused, and sustainability-driven. I urge our members to seize emerging opportunities, invest in technology and design, and forge stronger partnerships across the value chain.
The Council reaffirms its commitment to enabling growth through policy advocacy, industry dialogue, and market development. Together, let us strengthen India’s leadership in global textiles while safeguarding the interests of our producers, workers, and exporters.
:: TEXPROCIL ::
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