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India's economic growth narrative, often seen as a beacon of resilience in a global slowdown, is facing numerous challenge and sluggish consumption is one of the main ones. Despite headline GDP growth rates that have drawn global attention, the underlying story of consumer spending paints a less rosy picture.
Consumption slump,asymptom of deeper issues
The stark contrast between India's GDP growth and the tepid performance of consumer spending is a cause for concern.The consumption slowdown, evident in sectors like two-wheelers and fast-moving consumer goods, particularly in rural areas, reflects a broader economic malaise.
Several factors contribute to this consumption slump:
• Job creation challenges: The lack of substantial job creation in non-farm sectors has trapped a significant portion of the workforce in low-productivity agriculture. This limits income growth and, consequently, consumer spending.
• Wage stagnation: Real wages have remained stagnant across sectors like agriculture, manufacturing, and construction, eroding purchasing power and dampening consumer demand.
• Income inequality: The widening income gap exacerbates consumption challenges. While a small affluent segment drives luxury consumption, the vast majority of the population faces income constraints.
The limits of exports and government spending
With consumption faltering, the Indian economy has leaned heavily on exports and government spending to drive growth. However, there are inherent limitations to this strategy: • Export challenges: While India has the potential to become a global manufacturing hub, several hurdles,including high tariffs and local sourcing requirements, hinder its competitiveness. Moreover, global demand uncertainties pose risks to export-led growth.
• Government spending constraints: The government's fiscal consolidation efforts limit the scope for sustained high public expenditure. Infrastructure spending, while crucial, cannot be the sole growth driver in the long run.
Needfor amulti-pronged approach
To unlock India's economic potential, a multifaceted approach is essential:
• Revitalizing consumption: Boosting rural incomes, creating quality jobs, and addressing wage stagnation are imperative for reviving consumption. Targeted social welfare programs and investments in skill development can play a crucial role.
• Export-led growth: Streamlining export procedures, reducing tariffs, and improving infrastructure are essential for enhancing India's export competitiveness. Attracting global manufacturing investments requires a conducive business environment and skilled workforce.
• Private investment revival: Addressing capacity utilization issues, improving the business climate, and fostering investor confidence are crucial for unlocking private investment potential.
India stands at a crossroads. While the potential for rapid growth is undeniable, realizing this potential requires a concerted effort to address the underlying challenges, particularly the consumption slump. By adopting a holistic approach that focuses on job creation, income growth, and export competitiveness, India can embark on a path of sustainable and inclusive economic development.
With the possibility of companies shifting their factories from Bangladesh to India due to the current situation, Bihar sees an opportunity to attract textile manufacturers. Informal discussions have begun with major organizations, including the Apparel Council of India and the Confederation of Indian Industry (CII), to position Bihar as a viable destination.
Bihar is strategically located less than 1,000 km by road from Bangladesh's manufacturing hub. During a recent textile investors meet in Bihar, the Apparel Council of India held its board meeting in the state, becoming well-informed about the incentives available in Bihar’s textile sector.
The Bihar government has assured the Apparel Council and CII that any company interested in relocating from Bangladesh will receive immediate attention. Last year, Bihar officials, including Additional Chief Secretary of the Industry Department SandipPaundrik, engaged with Bangladeshi entrepreneurs to discuss investment opportunities in Bihar.
The state offers extensive plug-and-play facilities and a dedicated textile policy with substantial subsidies to attract manufacturers. Bihar's proactive approach aims to welcome Bangladeshi businesses looking for a new base.
India could secure additional monthly RMG export orders worth $200-250 million in the short term and $300-350 million in the medium term due to the current instability in Bangladesh, according to a report released by CareEdge.
Historically, Bangladesh has captured much of the global market share lost by China in RMG exports, while India has struggled to fully capitalise on these opportunities. However, the current situation in Bangladesh offers a strategic opportunity for India to expand its presence in the global RMG market, both in the short and medium terms.
The report highlights, large-scale Indian RMG manufacturers with strong operational efficiency and backward integration will benefit the most, as global brands seek reliable and efficient suppliers amid the uncertainty in Bangladesh.
Bangladesh's RMG exports declined by 17 per cent in Q1, FY25 compared to the same period last year. In contrast, India experienced a 4 per cent growth in RMG exports during the same period.
The socio-political disturbances and inadequate foreign exchange availability in Bangladesh have contributed to a slight erosion of its market share in the first quarter of the current fiscal year. This shift has narrowed the gap between Bangladesh's and India's RMG export volumes, with the ratio declining from 3.2x in FY24 to 2.5x in Q1FY25. During this period, Bangladesh's RMG exports totaled $9.7 billion, while India's exports reached $3.9 billion.
The recent budget announcements on skilling programs and the potential Free Trade Agreements with the UK and the EU are likely to further boost India's position in the global RMG market, says Krunal Modi, Director, CareEdge Ratings.
The US Department of Agriculture (USDA) estimates, net sales of 11,500 running bales (RB)_ of upland cotton were recorded during the Marketing Year (MY)’25-26, with Mexico (4,700 RB), Costa Rica (3,500 RB), El Salvador (2,000 RB), and Japan (1,300 RB) being the primary buyers.
As per USDA, net sales of upland cotton reduced by 949,600 RB during for MY’24-25. These reductions were offset by increases primarily from India (43,600 RB, including decreases of 8,800 RB), Mexico (40,400 RB, including decreases of 900 RB), Costa Rica (25,900 RB), Turkiye (15,100 RB, including decreases of 800 RB), and Guatemala (5,000 RB). However, significant reductions were observed, primarily from China (603,200 RB), Pakistan (372,200 RB), and Vietnam (111,800 RB).
Exports for the period ending July 31 totaled 738,100 RB, bringing the accumulated exports for the year to 11,070,400 RB, reflecting a 6 per cent decline compared to the previous year's total of 11,777,500 RB. The primary export destinations included China (273,400 RB, with 245,300 RB reported late), Vietnam (121,900 RB, with 94,500 RB reported late), Pakistan (102,300 RB, with 93,700 RB reported late), Bangladesh (52,700 RB, with 40,500 RB reported late), and Mexico (41,500 RB, with 33,000 RB reported late).
Regarding Pima cotton, net sales of 7,700 RB for the MY’24-25 were reported, with Vietnam (2,200 RB), India (2,100 RB, including decreases of 500 RB), China (1,600 RB, including decreases of 200 RB), Pakistan (1,100 RB, including decreases of 400 RB), and Egypt (400 RB) being the main buyers.
A total of 29,100 RB of Pima cotton sales were carried over from the MY’23-24, which ended on July 31. Exports for the period ending July 31 totaled 1,700 RB, bringing the accumulated exports to 321,800 RB, a 6 per cent increase from the previous year's total of 305,000 RB. The primary export destinations included India (1,400 RB), Turkiye (100 RB), Thailand (100 RB), and Taiwan (100 RB).
As against the earlier estimate of a 15-17 per cent drop, Under Armor now expects revenues from North America business to decline in the range of 14-16 per cent in FY25.
The brand posted a surprise profit in Q1, FY25 that ended on August 8. This rise was driven by improved margins from selling its sports apparel at full price and maintaining lower inventory levels, even as consumers become more selective with their spending.
Currently, the retailer is focusing on cutting promotions, reducing inventory, and streamlining its workforce. By prioritising higher-margin items like men’s apparel, the company managed to expand its gross margins by 110 basis points to 47.5 per cent, while inventory decreased by 15 per cent to $1.1 billion.
Simeon Siegel, Analyst, notes, the company is better situated selling less and charging more. The improvement in profitability in this quarter suggests that the initial steps of this reset are working, he adds.
Kevin Plank, CEO, highlights, he share of full-price products sold online increased significantly despite the company being even less promotional than planned.
However, revenues in the brand’s largest market, North America dropped by 14 per cent due to inflationary pressures on consumer budgets. The brand’s international revenues also declined by 2 per cent. Overall, the company's first-quarter revenue fell by 10 per cent to $1.18 billion, a smaller drop than the nearly 13 per cent decline anticipated by analysts.
The global textile colorant market is projected to grow at a CAGR of 5.4 per cent from 2022-32 and reach approximately $11,590.4 million by 2032. As per a report by Future Market Insights, the growth of this market will be driven by an increasing global demand for clothing, and rising disposable incomes.
Accounting for about 48 per cent of global textile production, the East Asia region is expected to dominate the market growth with significant contributions from countries like India and those in the ASEAN region. The demand for textile colorants from these countries is anticipated to represent around 9 to 11 per cent of global colorant consumption.
Key trends driving the growth in this region include a rising demand for technical textiles—specialised fabrics designed for specific applications in industries like healthcare, sports, and engineering. Geotextiles, a type of technical textile used in geotechnical applications, are gaining popularity due to growing environmental concerns. Additionally, neon dyes, which offer highly reflective properties, are increasingly used in athletic apparel to enhance safety.
However, the market faces challenges related to sustainability. The dyeing process is water-intensive, with over 1,000 liters of water needed to produce just 1 kg of dye. This has led to environmental degradation and prompted strict regulations from environmental authorities and governments, which are pushing for the use of natural dyes and biodegradable materials.
The market is fragmented, with major players offering over 10,000 variants of textile colorants. Leading companies are focusing on product innovation, partnerships, and geographic expansion, particularly in emerging economies, to strengthen their market position. Investments in research and development of sustainable products are also a key focus, as companies aim to reduce their carbon footprint and meet regulatory requirements.
A global leader in the retail industry, the Apparel Group has unveiled the latest Back-to-School collection of its homegrown brand R&B. Combining character-inspired designs with functional fashion, this collection is tailored for students from preschool through high school. It offersthem budget-friendly options without comprising on style. The range includes wrinkle-resistant pinafore dresses, skirts, school shirts, and pants, ensuring students maintain a neat appearance throughout the day. The footwear line features ballerinas and sneakers designed for comfort, incorporating advanced cushioning technology and contemporary designs.
A standout item in the collection is the 5-in-1 character trolley set, available for AED 99. This set, featuring popular characters like Batman, Spiderman, Superman, Stitch, Frozen, and Hello Kitty, includes a trolley backpack, lunch bag, tiffin box, water bottle, and accessory pouch. Other offerings include character backpacks priced at AED 70, fashion trolleys at AED 160, standard backpacks at AED 65, and a variety of stationery items such as pencil cases and notebooks.
The 2024 Back-to-School Collection is now available at all R&B stores across the GCC, as well as online at randbfashion.com, ensuring students can step into the new school year with style and confidence.
The whirring of sewing machines fills the air once more in Bangladesh's garment factories, signaling a cautious return to normalcy following a period of political turbulence. The industry, which contributes a staggering 83% to the nation's export earnings, has been grappling with the fallout of widespread protests that led to the ousting of Prime Minister Sheikh Hasina.
Resumption of prduction and the road to recovery
"We lost a total of four days," laments Miran Ali, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). "It is too early to make an estimate of the loss. There was little physical damage to factories, but the disruption has been significant." The BGMEA estimates that the four-day shutdown has cost the industry upwards of $1 billion in lost production.
Factories supplying major Western brands such as H&M, Zara, and Carrefour were forced to close their doors during the unrest. H&M, which sources from around 1,000 factories in Bangladesh, has assured its suppliers that it will not seek discounts due to the delays. "We welcome the steps that have been taken toward greater stability in Bangladesh," an H&M spokesperson told Reuters. "Our suppliers' factories are gradually reopening."
Workers eager to return
For the millions of garment workers in Bangladesh, mostly women, the reopening of factories is a welcome relief. "We are poor people depending on daily wages and overtime," says Razia Begum, an employee at Urmi Garments in Dhaka. "If we sit back home, how can we run our families?"
Global supply chain disruptions and shifting dynamics
The unrest in Bangladesh has sent shockwaves through the global garment industry. Hula Global, an Indian apparel producer, has announced that it will be redirecting production for the rest of the year from Bangladesh to India to avert risk.
Pankaj Tuteja, head of operations at Dragon Sourcing, a firm that helps companies find suppliers, believes that while major brands like Zara and H&M are likely to stick with Bangladesh, some smaller firms may look elsewhere. "Once the client, then the factories, have invested so much time and money they will not just immediately run back, even when there's political stability," he says. "That can have a long-term impact for Bangladesh."
Opportunities for competitors and long-term implications
The crisis in Bangladesh has created opportunities for other garment-producing nations, particularly India. According to a report by CareEdge, India could gain monthly export orders worth $200-250 million in the short term and around $300-350 million in the medium term.
Krunal Modi, Director at CareEdge Ratings, believes that India is well-positioned to capitalize on the situation. "The recent budget announcement on skilling programs and the potential Free Trade Agreements with the UK and the EU will further strengthen India's position in the global RMG market," he says.
The Path Forward: Rebuilding and resilience
While the reopening of factories is a positive sign, Bangladesh's garment industry faces a long road to full recovery. The country needs to restore political stability, ensure worker safety, and rebuild its reputation as a reliable supplier.
The International Monetary Fund (IMF) expects the ready-made garments industry to account for 90% of Bangladesh's $55 billion annual exports in the financial year 2024. The industry's ability to bounce back from the recent crisis will be crucial for the country's economic future.
A Turning Point for Bangladesh's Garment Industry
The reopening of Bangladesh's garment factories is a step in the right direction, but the industry remains vulnerable. The country needs to address the root causes of the recent unrest and create a stable and secure environment for businesses to thrive. Only then can Bangladesh reclaim its position as a global leader in the garment industry.
The ITM 2024 International Textile Machinery Exhibition, held from June 4-8 at the Tuyap Fair and Congress Center in Istanbul, solidified its status as a premier global event in the textile machinery industry. The exhibition, organized in partnership with Tuyap Tum FuarcılıkYapım Inc., Teknik Fairs Inc., and in cooperation with the Textile Machinery and Accessories Industrialists Association (TEMSAD), set new benchmarks with a significant increase in exhibitors, visitors, and business deals.
Unprecedented participation and global reach
This year’s event spanned 13 halls, covering an impressive 120,000 square meters. ITM 2024 drew participation from 1,385 companies and company representatives from 71 countries, attracting 66,200 visitors from 99 countries. Notably, 45 per cent of these visitors were international, highlighting the exhibition’s global appeal. The diversity in visitor demographics was further enhanced by Istanbul’s strategic location and liberal visa policies, making it easier for professionals from various countries to attend.
A key factor contributing to the diverse attendance was the ease of travel to Istanbul, coupled with the absence of visa restrictions. Visitors from across the globe, including countries as far-flung as Afghanistan, Brazil, Japan, and Zimbabwe, converged in Istanbul, making ITM 2024 a melting pot of cultures and business opportunities. This diversity was particularly beneficial for exhibitors, many of whom had the chance to engage with customers from regions typically hindered by stringent visa regulations in Europe.
Strategic collaborations and robust sales
The exhibition not only facilitated global networking but also witnessed substantial business transactions. From the outset, the exhibition halls were bustling with activity as exhibitors engaged with potential buyers and partners. The event proved to be a fertile ground for securing new collaborations and boosting machine sales. Over the five days, the exhibition generated a total business volume exceeding €1.5 billion, a significant contribution to both the textile machinery sector and the broader economy. This robust trade activity marked a revitalization of the industry, which had been experiencing a slowdown since September 2022.
Showcasing the future of textile technology
Under the banner “Discover the Future,” ITM 2024 turned into a vibrant showcase of cutting-edge textile technologies. Hundreds of manufacturers displayed their latest innovations, drawing the attention of global investors and trade delegations. Attendees had the unique opportunity to witness world premieres of innovative technologies across various sectors, including weaving, knitting, yarn production, digital printing, and denim finishing.
The exhibition emphasized sustainability and digitalization, with a strong focus on nature-protecting technologies. Visitors were keen to explore these advancements and gathered valuable insights from experts on integrating these innovations into their operations. For many, ITM 2024 served as a platform to chart their future investment strategies, driven by the need for more efficient and sustainable production processes.
Planning ahead: ITM 2026 already on the horizon
The success of ITM 2024 has already sparked interest in the next edition of the exhibition. Many companies, buoyed by the exceptional sales and networking opportunities, have wasted no time in securing their spots for ITM 2026. The registration points were abuzz throughout the event as companies lined up to ensure their participation in what promises to be another landmark exhibition.
ITM 2024 not only broke records but also set the stage for the future of the textile machinery industry. Its impact on global trade, innovation, and industry collaboration will resonate long after the event, paving the way for an even more dynamic and influential ITM 2026.
Colin Huang, founder of PDD Holdings, has become China's richest person, surpassing ZhongShanshan.
Huang, a former Google employee, launched e-commerce giants Pinduoduo and Temu. With a net worth of $48.6 billion, he's now the world's 25th wealthiest.
Temu, expanding globally, faces scrutiny for alleged manipulative practices.
