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The Clothing Manufacturers Association of India (CMAI) has warned against a potential increase in the Goods and Services Tax (GST) for higher-priced garments. According to recent reports, the GST on clothing items priced above Rs 2,500 is likely to be raised from 12 per cent to 18 per cent. CMAI opines, this move would harm the industry that is already facing challenges from recently imposed American tariffs.
CMAI states, if the GST Council sets Rs 2,500 as the threshold for the 5 per cent tax bracket and raises the rate to 18 per cent for more expensive products, it would negatively impact the growing middle class and the organized garment manufacturing sector. The association argues, 0 many products are priced higher due to the cost of raw materials and artistic handwork. Placing them in a higher tax bracket would hurt both manufacturers and consumers.
For example, essential woolen garments in North, North-East, and East India typically range from Rs 3,500 to Rs 7,000. Taxing these items at 18 per cent would make them less affordable for the middle class, CMAI points out. Similarly, wedding garments, often costing Rs 10,000 – Rs 15,000 or more, and artisan-made clothing, which is already expensive due to labor-intensive processes, would face significant price increases under the proposed tax.
The association warns, the tax hike could force parts of the industry back into the informal sector, reversing years of progress toward formalizing garment manufacturing. They emphasize, with the sector already grappling with the fallout from the US tariff war, strong domestic demand is crucial for sustaining growth and protecting livelihoods.
The association has appealed to the Prime Minister to intervene, highlighting that the garment industry is India’s second-largest employer, providing jobs to over 12 million people, many of whom are women and semi-skilled or unskilled workers.
Egypt's RMG exports increased by 26 per cent during the first seven months of the year, spanning January-July 2025. The country’s exports increased from $1.539 billion in the same period of 2025 to $1.939 billion.
Experts believe, if the current monthly growth rate of 30 per cent- 35 per cent continues, Egypt’s RMG exports could reach a record-breaking $3.7 billion by the end of the year.
Exports to Saudi Arabia rose by 97 per cent to $183 million. The country has a medium-term goal of reaching $12 billion in exports by 2031. This growth is expected to be fueled by the growth of industrial hubs, the development of new textile and garment cities in Fayoum and
An online fashion reseller, Depop launched a new multi-channel campaign on September 2 to highlight the growing importance of shopping for secondhand clothes, as per a report by Marketing Dive.
Titled, ‘Where Taste Recognizes Taste,’ the campaign features a 60-second commercial that introduces the concept of a ‘Depopelganger’ - two people from different walks of life who are brought together by their shared fashion sense. The campaign was created in collaboration with Uncommon Creative Studio.
This campaign is set to run across various platforms, including out-of-home (OOH) advertising, streaming radio on Spotify and SiriusXM, connected TV (CTV) services like Disney, Amazon, Roku, Netflix, and YouTube TV, as well as paid social media on TikTok, Meta, and Pinterest. With the growth of secondhand apparel market, the campaign aims to boost Depop’s US0 business, following other marketing initiatives launched this summer.
Founded in 2011, Depop has 43.5 million registered users. In 2021, it became a wholly-owned subsidiary of Etsy, while continuing to operate as a standalone company. The brand reported $249.6 million in general merchandise sales in the second quarter, a 35.3 per cent increase Y-o-Y, and saw a 54 per cent growth in the US during the same period.
Other brands are also capitalizing on the secondhand fashion trend. American Eagle partnered with ThredUp in 2023 to launch an online resale shop, and Heinz even collaborated with ThredUp on a fashion collection of thrifted clothes with ketchup stains.
Portugal's textile and clothing (T&A) industry is trying to negotiate a new deal with the Trump administration to lower tariffs. The new 15 per cent tariffs on European Union (EU) goods went into effect on September 1, and the industry is concerned that products that previously had a lower tariff will now have to pay 15 per cent, while those with a higher tariff will not see a reduction.
According to Ana Dinis, Director-General, Textile Association of Portugal (ATP), the process has been difficult with ongoing negotiations where information seems to change daily. Still, the ATP remains hopeful for a positive outcome soon.
César Araújo, President, National Association of Clothing and Apparel Industries (Anivec), noted, there are various interpretations of the new tariffs, and it's still uncertain which products will be affected and by how much.
According to ATP data, Portugal exported €435 million in textile and clothing products to the US in 2024. The US market accounts for 8 per cent of the sector's total exports, with revenues of around €500 million.
The ATP estimates, the new tariffs could lead to 10,000 layoffs in the textile industry across more than 6,000 companies in Portugal. The Bank of Portugal reported, two years ago, the sector had a turnover of over € 8 billion.
A global leader in commercial credit risk management, Coface believes the new 15 per cent tariff is a compromise that avoids the 30 per cent double tariff initially proposed by the U.S. president. However, it still represents a significant increase from the 1.2 per cent rate applied in 2024.
As part of the new agreement, the EU has committed to investing $600 billion in the US and purchasing $750 billion in US energy products over three years. The feasibility of these commitments has been widely questioned by analysts and European leaders.
The global apparel trade is showing a patchwork of resilience and volatility as the latest data from the Wazir Advisor’s ‘Global Apparel Trade & Retail Update Report for August 2025’. It highlights that while consumer demand remains robust in key markets, supply-side dynamics continue to shift, shaping the fortunes of exporters across Asia.
Imports show the West still hungry for fashion
June 2025 import figures show that major consuming markets particularly the US, the EU, the UK, and Japan are steadily raising their demand for apparel.
The US, still the world’s single largest consumer of fashion, imported $6.5 billion worth of apparel, marking a 5 per cent increase year-on-year. While modest compared to other markets, the growth signals steady demand despite economic uncertainty. The EU stood out with a sharp 21 per cent jump in apparel imports, totalling $7.4 billion. Analysts attribute this growth to stronger summer season buying and retailers replenishing stock amid robust consumer demand in Germany, France, and Italy. Japan posted a 7 per cent rise, importing $1.6 billion, reflecting its consumers’ steady return to discretionary spending. The UK saw perhaps the most striking trend, with imports climbing 29 per cent to $ 1.8 billion, a rebound linked to strong e-commerce growth and higher holiday-season purchases.
In exports, Bangladesh steals the spotlight
On the supply side, the July 2025 export data underscores how global sourcing patterns are continuing to evolve. China, the industry’s traditional powerhouse, shipped $14.7 billion worth of apparel, essentially flat compared to last year. While still dominant, China’s growth plateau highlights rising competition and diversification of sourcing. Bangladesh, in contrast, registered a 25 per cent jump in exports, reaching $4.0 billion. With its low-cost advantage and increasing compliance with sustainability standards, the country continues to cement its position as a reliable sourcing hub. India, however, reported $1.3 billion in exports, unchanged from a year earlier. This stagnation comes despite strong domestic retail demand, raising concerns about India’s competitiveness in the global supply chain. Vietnam clocked in $3.6 billion in exports, up 9 per cent, underscoring its reputation as a preferred destination for high-quality and diversified sourcing, particularly for US and Japanese buyers.
Retail Trends: Strong sales, e-commerce divergence
Retail performance presents a mixed picture. In the US, July 2025 apparel sales grew by 7 per cent, with home furnishings following close behind at 6 per cent. Yet the online marketplace told a different story, e-commerce sales of clothing and accessories dipped 3 per cent in Q2 2025, compared with the same period last year. Analysts suggest saturation in digital channels and a renewed tilt toward physical retail as consumers return to stores.
The UK, by contrast, reported a 2 per cent rise in online clothing sales in Q2 2025, mainly due to strong uptake of fast-fashion platforms and omnichannel shopping models. Closer to home, India’s apparel retail sales rose 10 per cent in June 2025 year-on-year, reflecting both festive pre-purchases and growing discretionary spending among middle-class households. This growth, industry insiders say, is being led by smaller cities and Tier-II markets, where consumers are increasingly shopping both online and offline.
The macroeconomic backdrop, US’ uneasy balance The US economy remains a critical barometer for global trade flows. In July 2025, the Consumer Confidence Index ticked up to 97.2 from 95.2 in June, showcasing optimism. But the labor market showed fragility as 73,000 jobs were added, while the unemployment rate edged up to 4.2 per cent from 4.1 per cent. Retailers remain cautiously optimistic, watching whether consumer demand will sustain momentum through the holiday season.
Table: Apparel imports in June 2025 ($ bn)
|
Region |
Imports |
YoY Growth |
|
US |
6.5 |
+5% |
|
EU |
7.4 |
+21% |
|
Japan |
1.6 |
+7% |
|
UK |
1.8 |
+29% |
Table: Apparel exports in June 2025 ($ bn)
|
Country |
Exports |
YoY Growth |
|
China |
14.7 |
0% |
|
Bangladesh |
4 |
+25% |
|
India |
1.3 |
0% |
|
Vietnam |
3.6 |
+9% |
The August 2025 apparel update indicates a world in transition. Consumer demand in Western markets remains healthy, but sourcing shifts are increasingly favoring agile, low-cost, and sustainable producers like Bangladesh and Vietnam. India’s flat export performance, despite strong domestic demand, underscores the urgency for policy support and industry innovation if it is to capture a greater share of global apparel trade.
With festive seasons approaching in South Asia and the holiday shopping wave in the West around the corner, the next quarter will be critical in determining whether these growth trends hold firm or whether volatility in macroeconomic conditions begins to dampen momentum.
Global textile and apparel industry's most anticipated event, Intertextile Shanghai Apparel Fabrics – Autumn Edition 2025 officially opened at the National Exhibition and Convention Center. To run until September 4, 2025, the three-day trade fair serves as dynamic hub for innovation, a barometer of future trends, and a crucial meeting point for industry leaders from around the world.
This year’s event focuses on two important pillars: sustainability and digital innovation. The fair's dedicated Econogy Hub is a testament to this commitment, showcasing cutting-edge, eco-friendly products and processes. Exhibitors in this zone are highlighting everything from recycled fabrics and organic cotton to low-impact dyeing techniques, providing solutions for brands seeking to meet growing consumer demand for greener products.
The Digital Solutions Zone offers a glimpse into the future, featuring technologies like AI-driven design software, 3D body scanning, and automated manufacturing systems that promise to revolutionize the supply chain.
Navigating the global supply chain
As an important sourcing platform, Intertextile Shanghai proves as a vital link in the global textile value chain. The event offers an unparalleled opportunity to international buyers and brands to connect directly with suppliers and manufacturers from across Asia and beyond. The diverse product zones cater to every need, from high-end luxury to everyday essentials. In SalonEurope, European exhibitors are presenting their latest collections of premium fabrics. Meanwhile, the Beyond Denim zone is showcasing innovative denim washes, sustainable materials, and new fabric constructions.
The Functional Lab is drawing a lot of attention, with its display of performance fabrics designed for sportswear and activewear. Attendees can also find every accessory imaginable in the sprawling Accessories Vision section, which is filled with everything from zippers and buttons to decorative trimmings.
Knowledge and networking
A major attraction of this event is the fair's robust program of educational events and networking opportunities. A series of seminars, workshops, and forums are delving into topics that will shape the industry for years to come. Experts are leading discussions on next season's trends for A/W 2026/27, providing valuable insights for designers and buyers.
Other sessions are exploring the transformative role of AI in textile design, new strategies for sustainable practices and circularity, and key market trends. These events provide a crucial platform for knowledge exchange and strategic planning, helping attendees stay ahead in a fast-paced market.
Being held concurrently with Yarn Expo Autumn and CHIC, Intertextile Shanghai –Autumn Edition creates a one-stop-shop for the entire textile and apparel industry. This synergistic approach allows buyers to source everything from raw materials to finished garments under one roof, strengthening the fair's status as a comprehensive and indispensable industry event.
London-based designer Patrick McDowell has refreshed its brand identity with a new wordmark and monogram. This refreshed look is meant to reflect the brand's evolution and prepare it for future growth.
The designer is scheduled to host a show on September 20 during London Fashion Week, a platform he has used to build his brand by championing responsible design and luxury.
Developed in partnership with the creative consultancy Duncan Fenech, the new wordmark and monogram is inspired by Marie Antoinette, the last Queen of France. The consultancy says her ornamental influence was transformed into a powerful symbol of renewal, capturing the brand's ability to turn classical inspiration into a modern, relevant aesthetic. The new monogram is described as both fluid and feminine, blending softness with precision while also referencing traditional craftsmanship.
Luke Fenech, Creative Director, Duncan Fenech, says, the new identity celebrates the brand’s values of circularity and British craftsmanship.
A global leader in developing fiber and technology solutions for the apparel and personal care industries, The Lycra Company made a comeback to Intertextile Shanghai with an exclusive global preview of its latest innovations in denim fabrics.
For the first time, the company's booth features an open-concept co-creation space designed to foster collaboration. Four key industry partners join The Lycra Company in this shared exhibit space, located in Hall 4.1 (Booth E56). This area is part of a larger 788-sq-m pavilion, which also includes 18 co-exhibitors. The impactful and visually striking design brings the new All In Lycra brand positioning to life, creating an immersive experience for visitors.
This new positioning highlights the company's commitment to helping partners stay competitive with advanced fiber solutions that enhance their products' capabilities.
Visitors to The Lycra Company’s booth can explore the company innovations like the Lycra Vintage FX denim technology, bio derived Lycra Ecomade fiber, Lycra FitSense denim technology, Coolmax EcoMade Fiber and Thermolite Ecomade fiber.
The four partners in the open pavilion showcase Lycra fiber across the value chain—from yarn to finished garment.
A leading global fiber and technology solutions provider to the apparel and personal care industries, the Lycra Company is committed to offering sustainable products using renewable, pre-, and post-consumer recycled ingredients that reduce waste and help set the stage for circularity. Headquartered in Wilmington, Delaware, United States, it owns the Lycra, Lycra Hyfit, Lycra T400, Coolmax, Thermolite, Elaspan, Supplex and Tactel brands.
Following the recent 50 per cent tariffs imposed by the US on Indian goods, several Indian companies are strategically shifting their operations to Africa to maintain access to the American market. This move is a direct response to the punitive tariffs, which were a consequence of India's continued purchases of Russian oil.
Companies like apparel manufacturer Gokaldas Exports and premium garments maker Raymond Lifestyle are among those looking to expand production in African countries, where US tariffs can be as low as 10 per cent. The tariffs have hit labor-intensive sectors such as jewelry and apparel the hardest, with a recent Bloomberg Economics note suggesting that exports of some goods could drop by as much as 90 per cent.
The tariffs are expected to more than halve India's overall exports to its largest market, the US/ In 2023, India exported over $20 billion in textile products, jewelry, and diamonds to the U.S.
Sivaramakrishnan Ganapathi, Managing Director, Gokaldas Exports, confirms, his company plans to continue expanding its presence in Africa to offset the high tariffs. Gokaldas already operates four factories in Kenya and one in Ethiopia, both of which face a 10 per cent US tariff. Similarly, Amit Agarwal, CFO, Raymond Lifestyle, notes, the company is in talks with its American clients to increase shipments from its Ethiopian plant.
African nations have emerged as a viable alternative for Indian companies due to favorable business environments. Countries like Ethiopia, Nigeria, Botswana, and Morocco are offering various incentives, including tax holidays, customs duty exemptions, and value-added tax (VAT) exemptions, to attract foreign investment.
In a bid to address a long-standing issue threatening the man-made fiber (MMF) textile industry, the Northern India Textile Mills Association (NITMA) has urged the Union Finance Minister and the GST Council to ensure a uniform GST rate of 5 per cent is levied on both Polyester Staple Fiber (PSF) and Polyester Staple Yarn (PSY), thus aligning them with the tax on fabrics and garments.
This change would eliminate the inverted duty anomaly, free up capital, and make the spinning industry financially sustainable, states Siddharth Khanna, President, NITMA.
A failure to act on this could lead to widespread factory shutdowns and job losses across the country, Khanna adds. He highlights, while the cotton value chain enjoys a uniform 5 per cent GST on all its products, the MMF sector faces disparate tax rates that create a significant imbalance. The current GST framework taxes PSF at 18 per cent, polyester spun yarn PSY)at 12 per cent, and MMF fabrics and garments at just 5 per cent. This misalignment means manufacturers get taxed more for their raw materials than for their finished products, leading to a financial logjam.
This structure is an existential threat to the industry, emphasizes Khanna. The high tax on raw materials like PSF forces companies to block a significant portion of their annual turnover in GST refunds, leading to high interest costs on locked capital and complex refund procedures. The tax on new capital investments is also hiked by 18 per cent, making it expensive to modernize. Moreover, imported yarns, which don't face this domestic tax structure, gain an unfair advantage, directly undermining the ‘Make in India’ initiative.
