FW
In a meeting with Shahidullah Azim, Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), a delegation from the Uzbekistan Textile and Garment Industry Association (UZTEXTILEPROM) discussed potential collaborations to foster mutual trade benefits in the apparel and textile sectors. Focusing on identifying areas for trade and investment, the meeting signified a growing interest in inter-regional cooperation within the global textile industry.
The UZTEXTILEPROM delegation included key figures such as Mukhammadsaidov Bakhtiyor, Head-Department of the Textile, Garment and Knitwear Industry, Ministry of Investment, Industry and Trade; Sherzod Akbarov, Head of Department, UZTEXTILEPROM; and Mehdi Mahbub, Advisor, UZTEXTILEPROM. Their presence underscored the importance Uzbekistan places on strengthening international partnerships in this vital sector.
During the discussion, the Uzbek delegation presented an overview of their nation's textile and garment industry, emphasizing its significant competitive advantages. A key highlight was Uzbekistan's strategic geographical location, offering close proximity and easy access to Commonwealth of Independent States (CIS) countries. This access to a substantial market presents a compelling proposition for potential partnerships. To further explore these opportunities, the UZTEXTILEPROM representatives extended an invitation for a business delegation from BGMEA to visit Uzbekistan.
In turn, Azim highlighted Bangladesh's evolving focus on product diversification, particularly in high-value man-made fiber (MMF)-based garments. He emphasized Bangladesh's proactive efforts to penetrate new export markets, specifically citing the CIS region, which boasts an estimated $55 billion apparel market. Azim proposed a collaborative approach, inviting the Uzbek delegation to work together to explore avenues for Bangladesh's ready-made garment (RMG) exports to CIS markets via Uzbekistan. This strategic alliance could leverage Uzbekistan's established access to the CIS bloc, creating a mutually beneficial trade corridor for both nations.
Following a meeting with Ursula von der Leyen, President, European Commission on July 27, 2025, US President Donald Trump announced the signing of a trade deal introducing a 15 per cent tariff on most goods from the European Union entering the US, including cars.
Notably, certain products like aircrafts, their components, chemicals, and pharmaceuticals will be exempted from these tariffs. This new rate will not be added to existing tariffs. Earlier this month, President Trump had threatened a 30 per cent tariff on the EU, to which the bloc had prepared retaliatory measures.
Beyond tariffs, the agreement includes substantial economic commitments. The EU will purchase US energy worth $750 billion and invest an additional $600 billion in the US over time. As announced by President Trump, ‘hundreds of billions of dollars worth military equipment would also be purchased,’ He lauded the agreement as ‘a very powerful and big deal, it's the biggest of all the deals,’ he asserted.
The deal received a mixed but generally positive reception. Ireland acknowledged trade would become ‘more challenging and expensive’ but welcomed the clarity. Praising the deal, German Chancellor Friedrich Merz highlighted its benefits for Germany's auto industry as it reduced tariffs from 27.5 per cent to 15 per cent. Dick Schoof, Prime Minister, The Netherlands, commended the EU for securing the ‘best deal possible.’ The US-EU trade relationship is valued at nearly $2 trillion.
After a dip in May, UK retail sales volumes increased by an estimated 0.9 per cent M-o-M and 1.7 per cent Y-o-Y in June 2025, shows a report by the Office for National Statistics (ONS). This positive trend follows a significant 2.8 per cent M-o-M decline in May, indicating a renewed consumer activity.
However despite this recent growth, overall re tail volumes in June remained 1.6 per cent below their pre-COVID-19 levels recorded in February 2020, highlighting the ongoing recovery still needed in the sector.
Showing encouraging signs, retail sales volumes in Q2, FY25 increased by 0.2 per cent Q-o-Q and 1.8 per cent Y-o-Y during the quarter, as per the ONS release. This increase suggests a steady, albeit modest, improvement in consumer spending habits.
A notable highlight in June was the robust performance of non-store retailers, whose sales volumes increased by 1.7 per cent. This growth pushed non-store sales to their highest level since February 2022, underscoring a continued shift towards digital purchasing. While less dramatic, non-food store sales volumes also saw a marginal increase of 0.2 per cent M-o-M in June, with department stores and clothing retailers experiencing month-over-month growth.
The rise in online activity was particularly pronounced in terms of spending. The amount spent online, or ‘online spending values,’ increased by 2.3 per cent M-o-M and 4.5 per cent Y-o-Y in June 2025. This digital growth extended into the second quarter, with online spending values rising by 3.3 per cent Q-o-Q.
Consequently, total retail spend - combining both in-store and online sales - increased by 1.1 per cent M-o-M. This led to a slight but significant rise in the proportion of sales made online, which grew from 27.4 per cent in May 2025 to 27.8 per cent in June 2025, further solidifying the growing importance of e-commerce in the UK retail landscape.
Telangana is actively pursuing stronger economic ties with Taiwan, with D Sridhar Babu, IT and Industries Minister announcing plans to establish dedicated manufacturing zones and exclusive textile clusters in the state for Taiwanese companies. This offer was extended during a meeting with an 11-member Taiwanese textile delegation, led by Taiwan Textile Federation President Justin Huang, at the Secretariat in Hyderabad.
Urging Taiwanese industrialists to invest in Telangana's rapidly growing textile sector, Minister Babu emphasized the state's significant opportunities compared to other Indian states. He highlighted, Telangana has swiftly risen as a formidable player in the textile industry, making a notable contribution to the state's economy. The Gross State Value Added (GSVA) from industries for 2024-25 stood at Rs 2.77 lakh crore, with textiles playing a key role. Telangana produces some of the finest quality cotton in India, he stated.
A key highlight presented by the Minister was the Kakatiya Mega Textile Park (KMTP), a state government initiative described as a ‘game-changer.’ KMTP offers integrated, world-class infrastructure covering the entire textile value chain, from ginning and spinning to weaving, processing, and garmenting. Leading international companies such as Youngone, Kitex, and Ganesha Ecosphere have already invested in the park, which benefits from its strategic location along the Hyderabad–Nagpur–Vijayawada Industrial Corridor and excellent logistics.
Assuring the delegation of the Telangana government's commitment to fostering industrial growth through global partnerships, Minister Babu pointed to vast investment opportunities in areas like functional textiles, eco-friendly dyeing, and textile recycling. He underscored the state's attractive offerings including customized land parcels, plug-and-play facilities, a skilled workforce, effective leadership, a stable government and strategic geographic advantage.
Beyond textiles, Minister Babu identified other sectors ripe for collaboration with Taiwanese enterprises, including technical textiles, electronics system design and manufacturing (ESDM), sustainable manufacturing, and innovation and research and development. This proactive outreach aims to strengthen bilateral industrial cooperation and attract significant Taiwanese investment into Telangana, he affirmed.
India's Goods and Services Tax (GST) Council plans to evaluate a proposal to implement a uniform 12 per cent GST across the entire textile value chain. Expected to be discussed before September as part of the next phase of GST reforms, this reform aims to correct the long-standing inverted duty structure that has plagued the sector, as per a report by Moneycontrol.
Likely to be part of the Group of Ministers' (GoM) rate rationalization report, the proposal is being supported by the Centre. Currently, cotton is taxed at 5 per cent, yarn at 12 per cent, and synthetic fibers and their chemicals at 18 per cent. Additionally, garments priced below Rs 2,000 attract a 5 per cent GST, while those above Rs 2,000 are taxed at 12 per cent.
The proposal is to bring everything to 12 percent. The lower 5 per cent GST on cotton was originally intended to benefit farmers and keep raw materials affordable, given its status as a primary agricultural commodity. However, this rate mismatch has led to working capital getting stuck in refund claims, distorted pricing, and disincentives for investment.
The proposed reform may also eliminate the price threshold on garments, applying a flat 12 per cent rate irrespective of value for simplification.
The current rate structure not only distorts pricing but also impacts cash flow due to reliance on inverted duty refunds, which the government aims to limit. This move is part of a broader effort to streamline the GST framework, reduce hidden costs, and enhance the global competitiveness of India’s textile industry. A uniform rate is expected to simplify compliance, reduce reliance on refunds, and potentially attract new capital into textile manufacturing, particularly benefiting the synthetic segment which currently faces heavier taxation despite its mass consumption.
The global apparel trade and retail sector continues to evolve, balancing between post-pandemic recovery, macroeconomic uncertainties, and changing consumer behavior. Wazir Advisors July 2025 Apparel Trade & Retail Update reveals a complex picture: while some markets are charting strong growth, others are seeing sluggish demand and competitive pressures. From a rebound in UK imports to Vietnam's booming export performance and India’s growing domestic retail, the global apparel map is dotted with diverse paths.
Apparel Imports: UK moves ahead, US stalls
May 2025 witnessed sharply contrasting import trends among major apparel-consuming nations. The United States, traditionally the world’s largest apparel importer, saw its imports decline 8 per cent year-on-year, falling to $5.5 billion. This downturn reflects persistent inflationary pressure, inventory adjustments by large retailers, and a slight consumer pullback amid economic uncertainty.
In contrast, the European Union recorded a 4 per cent YoY increase in apparel imports, touching $7.2 billion. The EU’s demand resilience is likely tied to a strong summer fashion cycle, restocking across mass-market retailers, and improved consumer sentiment in economies like Germany and France.
The UK, however, emerged as the star performer. With a 36 per cent YoY increase in apparel imports, reaching $1.9 billion, the UK appears to be in the middle of a fast-fashion revival, boosted by aggressive buying from e-commerce giants and early festive season shipments.
Meanwhile, Japan showed a 7 per cent YoY growth in apparel imports to $1.6 billion, indicating stable recovery in consumer demand and a return to workwear and occasion wear purchases.
Apparel Exports: Vietnam shines, Bangladesh slips
In June 2025, China maintained its dominance as the world’s top apparel exporter, clocking $14.8 billion, a 2 per cent YoY increase. While this growth is modest, it signals resilience amid geopolitical scrutiny and rising production costs. Chinese exporters continue to focus on high-margin segments and nearshoring strategies.
Vietnam, meanwhile, posted the strongest export performance among major Asian exporters, registering 18 per cent YoY growth to reach $3.3 billion. The country is reaping the benefits of free trade agreements, relocation of manufacturing from China, and investments in sustainable production.
On the flip side, Bangladesh faced a setback, with exports dipping 7 per cent YoY to $2.8 billion. The decline may be attributed to energy shortages, compliance pressures, and cooling orders from Europe. Concerns about cost competitiveness and environmental compliance continue to challenge the industry.
India, however, saw its exports hold steady at $1.3 billion, showing no YoY change. While not a decline, the stagnant figure underlines India's ongoing struggle with price competitiveness and supply chain fragmentation despite global buyers’ interest in supplier diversification.
Retail Markets: India’s boom, UK’s digital edge, US recovery
On the retail front, apparel sales showed encouraging trends in most major economies during June 2025, signalling firm consumer confidence and gradual demand normalization.
In the US, apparel and home furnishing store sales rose 2 per cent YoY, reflecting steady foot traffic in physical stores. Though not dramatic, the rise indicates that brick-and-mortar retail is holding its ground against e-commerce, supported by ongoing promotions and early back-to-school demand.
The UK saw similar store-based growth, with June apparel store sales reaching £4.7 billion, a 2 per cent YoY increase. More notably, e-commerce clothing sales grew by 2 per cent in Q2 2025, a sign that online fashion retail continues to mature even as pandemic-era spikes normalize.
India, however, emerged as the most dynamic retail market in the current update. June 2025 apparel retail sales jumped 10 per cent over the previous year, pushed up by a young consumer base, digital payments penetration, and a flourishing ethnic and value-fashion ecosystem. The growth, spread across Tier-I and Tier-II cities, reflects strong domestic consumption fundamentals.
The bigger picture, world of divergence
The global apparel industry is no longer moving in lockstep. Instead, it is a story of regional divergence, multi-speed recovery, and structural adaptation.
• Manufacturing centers like Vietnam are growing, due to its agility and policy support.
• Traditional giants such as Bangladesh face hurdles, requiring urgent modernization and energy resilience.
• Consumer markets like India are witnessing a domestic boom that could reshape sourcing and retail strategies.
• Developed markets, including the US and UK, show cautious optimism, with a strong tilt toward omnichannel and discount-led buying patterns.
As supply chains rewire and retailers recalibrate, July 2025’s data is a timely reminder that agility, digital adaptation, and sustainability will define future winners in global apparel.
Outlook for Q3 2025
With peak holiday seasons on the horizon in the West and festive buying cycles beginning in South Asia, the third quarter is likely to bring more pronounced trends. Stakeholders across sourcing, retail, and logistics will be watching closely to see whether these early signals of growth sustain—or fragment further.
In a fragmented but fast-evolving market, one thing is clear: apparel’s global footprint is shifting, and those who adapt fastest will define the next chapter of fashion commerce.
As a direct consequence of a pre-announced steep US tariff hike, Bangladesh apparel exporters are facing intense pricing pressure from European buyers. Set to take effect from August 1, this looming tariff is pushing Bangladeshi manufacturers to aggressively seek new orders in the European Union to fill production gaps.
Most US buyers are currently hesitant to place new orders due to the uncertainty surrounding the potential tariff increases. This reluctance has prompted thousands of Bangladeshi exporters to turn more actively to the EU market, where, according to industry insiders, European buyers are capitalizing on the situation by demanding lower product prices.
SM Majedur Rahim, Director, Giant Group, notes, orders from US buyers have halved. Even when US buyers are placing orders, the volumes are small. Some have already offered lower prices for repeat orders, citing tariff pressure. It's unfair to expect exporters to bear the cost of tariffs, he states. Major EU retailers like H&M and Inditex, who also have significant US business, have reportedly cut their order volumes by 10-20 per cent in anticipation of the tariffs.
A 35 per cent reciprocal tariff on Bangladeshi exports to the US is expected. This means that if the proposed tariff is implemented, the total tariff burden on Bangladeshi goods in the US could rise to a challenging 50.5 per cent, up from the current average of 15.5 per cent. European buyers are leveraging this uncertainty to renegotiate and reduce apparel prices. For instance, Fazlee Shamim Ehsan, CEO, Fatullah Apparels, shares, a Dutch buyer offered 25-30 cents less per unit on a $750,000 order, citing ‘Trump-era tariff policies,’ a price he couldn't accept, making factory operations difficult.
The United States is Bangladesh's largest single export destination, accounting for $5.05 billion- or 58 per cent - of Bangladesh's total exports in FY25. Over 800 Bangladeshi firms rely on the US for more than half their exports, making them highly vulnerable.
Industry leaders fear that if Bangladesh faces higher tariff rates than competitors like Vietnam, India, and Pakistan, it will severely impact their export sector, risking millions of jobs and potential labor unrest. This ripple effect from US tariffs, combined with shrinking orders from non-traditional markets like India and South Korea due to other barriers, poses a significant threat to Bangladesh's market competitiveness.
The textile and apparel sector in Sri Lanka is reinforcing its commitment to environmental, social, and governance (ESG) transparency with the launch of a significant new sustainability program. The Improving Transparency for Sustainable Business (ITSB) initiative aims to embed world-class ESG reporting practices, enhancing the industry's resilience, competitiveness, and global standing.
Jointly launched by the Global Reporting Initiative (GRI) South Asia, the Sustainable Development Council (SDC) of Sri Lanka, the Sri Lanka Export Development Board (EDB), and the Joint Apparel Association Forum (JAAF) of Sri Lanka, the ITSB program is backed by the Swedish International Development Cooperation Agency (SIDA). It focuses on building long-term capacity for textile and apparel companies, from large multinationals to small and medium-sized enterprises.
Participating companies will receive comprehensive training on utilizing the globally recognized GRI Standards to transparently report on crucial sustainability topics. These include labor practices, climate impact, energy use, economic impact, and waste management. Beyond direct business engagement, the initiative will also collaborate closely with national and international stakeholders, including regulators, investors, industry bodies, worker groups, media, and academia.
The inaugural capacity building session, held on July 16, 2025, at Courtyard by Marriott Colombo, saw strong attendance from public and private sector leaders, including EDB Chairman Mangala Wijesinghe, JAAF Secretary General Yohan Lawrence, and SDC Director Jeevanthie Senanayake.
Rahul Singh, Senior Manager, South Asia, GRI, emphasized the program's significance: "ITSB is designed to elevate sustainability practices and transparency across South Asia’s textile and apparel sector, positioning it for long-term resilience, profitability, and global leadership." He added that adopting GRI Standards boosts corporate transparency, investor confidence, international positioning, and regulatory preparedness.
This program aligns with Sri Lanka’s Action Plan to Develop Inclusive and Sustainable Business Capacities and comes as global buyers increasingly prioritize traceability and ethical sourcing. Emerging regulations, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), are further reshaping international trade dynamics.
Highlights from the session included a preview of the draft GRI Textiles and Apparel Sector Standard (2025), interactive workshops, and a high-level roundtable discussion on integrating ESG with business, policy, and investment goals. Notably, the ITSB initiative is set to expand to India and Bangladesh later this year, making Sri Lanka a regional early mover.
With apparel accounting for over 40 per cent of Sri Lanka’s total export revenue and employing over 350,000 people, the ITSB represents a strategic move towards a future-ready, consciously sustainable industry.
Set to deliver a dynamic industry platform at the Shanghai New International Expo Centre from September 3-5, 2025, Cinte Techtextil China has already confirmed exhibitors from 12 countries and regions, showcasing a full spectrum of technical textiles and nonwovens across 12 application areas.
A significant highlight for 2025 is the debut of the Textile Chemicals and Dyes Zone. This new product category and dedicated zone will host renowned companies like CHT Germany GmbH (Germany) and Michelman Inc (USA), opening new business avenues for applications in sports and leisure, safety and protection, industrial protection, and construction. Other notable exhibitors in this zone include Dupré Minerals (UK), showcasing their flame-retardant Micashield Vermiculite Dispersion, and China's Shanghai Xinnuo Chemical and Yancheng Ruize Color Masterbatch, presenting innovative water-based emulsified waxes and high-quality masterbatches, respectively.
The fair's International Hall (W5) will feature reputable European and German Zones, offering valuable expertise and opportunities to trade visitors. These zones will host leading companies presenting their quality, high-tech products as Europe's technical textile and nonwoven production returns to pre-pandemic levels. Returning brands include Switzerland's EMS-GRILTECH and UK's Fibre Extrusion Technology, alongside new exhibitors such as Serel Industrie (Belgium) with X-ray technology for textile production, and Proton Product International (UK), a manufacturer of industrial instrumentation. The German Zone will welcome giants like Brueckner Textile Technologies (energy-efficient finishing machines), Lindauer DORNIER (weaving machines for high-performance fabrics), and newcomer Wetekam Group (technical monofilaments).
Capitalizing on market demand, Cinte Techtextil China will also feature a strong contingent of Mobiltech (automotive textile) exhibitors. Global players like China's Eastex Industrial Science And Technology, Belgium's Picanol, and Germany's Rowa Group will be present. Malaysian manufacturer JCT Industries will showcase its PVA products for construction and automotive uses, emphasizing sustainable manufacturing processes utilizing local geothermal resources. China's Jiangsu HongFeng Thread Technology will highlight its certified polyester and nylon sewing threads for automotive and other industrial applications.
The fair's comprehensive product categories span the entire technical textile industry, from upstream technology and raw materials to finished fabrics and chemical solutions, ensuring an effective business platform for all participants. Cinte Techtextil China 2025 is organized by Messe Frankfurt (HK) Ltd, the Sub-Council of Textile Industry, CCPIT, and the China Nonwovens & Industrial Textiles Association (CNITA).
Flagship Company of the Trident Group, Trident Limited reported a consolidated revenue of Rs 1,727 crore in Q1, FY26. The group’s consolidated EBITDA increased by 18.12 per cent Q-o-Q and 29.85 per cent Y-o-Y to Rs 312 crore. Consolidated net profit increased by 4.89 per cent Q-o-Q and 89.39 per cent Y-o-Y to Rs140 crore,
Trident also strengthened its financial position, reducing its net debt to Rs 879 crore as of June 30, 2025, down from Rs 910 crore on March 31, 2025, a reduction of Rs 31 crore. The company maintained a healthy Debt-Equity Ratio of 0.35 and a Current Ratio of 1.87, demonstrating robust financial health despite global economic fluctuations.
Deepak Nanda, Managing Director of Trident Limited, states, even amidst challenging macroeconomic conditions, the company has showcased quarter-on-quarter growth in terms of profitability.
Nanda points out, the company’s focus on innovative product pipelines aligned with evolving consumer preferences, combined with positive tailwinds from recent US tariff revisions and new FTA between India and the UK, positions it favorably to capitalize on emerging opportunities. He affirms Trident's ongoing commitment to sustainable growth and operational excellence, emphasizing future focus on ‘improving their volumes, value-added products and ESG.
Headquartered in Ludhiana, Punjab, Trident Limited is the flagship company of the Trident Group, an Indian business conglomerate with a global presence. It operates as a vertically integrated manufacturer across three major segments: textiles (yarn, bath and bed linen), paper (wheat straw-based), and chemicals, with manufacturing facilities located in Punjab and Madhya Pradesh.
Trident's products, including yarn, bath and bed linen, and paper, have garnered global recognition, serving millions of customers worldwide. The company is one of India's largest players in home textiles, supplying to national, captive, and retailer-owned brands. Trident is widely acclaimed for its product quality, social responsibility, and environmental stewardship, earning awards from customers, vendors, and government entities.
