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Indian apparel sector shifts toward circularity as sustainability mandate intensifies
The Indian textile and apparel industry is transitioning from environmental ambition to operational reality, driven by a tightening global regulatory landscape and a national push for export competitiveness. At the inaugural Eco-Stitch Sustainability Conclave held in Mumbai on April 3, 2026, industry leaders and policymakers signaled that integrating ESG (Environmental, Social, and Governance) principles is no longer a peripheral CSR activity but a core requirement for accessing international markets through Free Trade Agreements (FTAs).
Aligning policy with global export standards
Inaugurating the event, Vrunda Desai, Textile Commissioner emphasized, India’s roadmap toward becoming a global manufacturing hub - or ‘Atmanirbhar’ - is inextricably linked to sustainability. As international buyers increasingly demand transparency and circularity, the Ministry of Textiles is urging manufacturers to view green business strategies as a prerequisite for trade. The conclave, organized by the Clothing Manufacturers Association of India (CMAI) and SU.RE, served as a strategic forum for over 250 decision-makers to align the domestic supply chain with these evolving global benchmarks.
Operationalizing the 3Rs through artificial intelligence
The shift toward ‘actionable pathways’ was evidenced by the debut of experiential 3R Zones (Reuse, Repurpose, Recycle), which moved beyond theory to showcase integrated waste-to-wardrobe supply chains. A central theme of the summit was the role of technology in bridging the gap between intent and implementation. Industry experts highlighted how Automation and AI are now being deployed to drive traceability and resource efficiency, transforming circularity from a late-stage consideration into a design-phase priority.
Scaling sustainable infrastructure and financial inclusion
The transition is being supported by institutional frameworks, such as UNIDO’s technology innovation roadmap, which provides a unified platform for technical and financial support for textile clusters. Leaders from Aditya Birla Fashion & Retail and Khadi& Village Industries Commission noted that as India moves toward becoming the world’s third-largest economy, the textile sector must balance high-volume production with resource efficiency. This includes revitalizing heritage fabrics like Khadi through modern design and securing green finance to support MSMEs in adopting responsible manufacturing practices.
Recognizing excellence in the green transformation
To formalize this industry-wide commitment, the event concluded with the CMAI SU.RE Sustainability Awards, honoring organizations that have successfully scaled sustainable materials and digital innovation. From large-scale players like Birla Cellulose to startups focusing on fiber innovation, the accolades underscored a maturing ecosystem where social impact, traceability, and circularity are becoming the primary metrics of corporate success in the Indian fashion landscape.
Resilient man-made fibers offset steep decline in Indian apparel exports to the US
The Indian textile and garment sector faced significant headwinds in the first two months of 2026, as exports to the United States experienced a sharp contraction. According to the latest data from the Confederation of Indian Textile Industry (CITI) and the US Office of Textiles and Apparel (OTEXA), combined shipments fell by 3.75 per cent in January 2026, with a more drastic 28.7 per cent Y-o-Y plunge recorded in February, totaling just $0.63 billion. This downturn, marking six consecutive months of decline, is primarily attributed to a combination of high legacy tariffs and a broader compression in American discretionary spending.
Comparative performance and competitive realignment
While India’s exports slumped, the competitive landscape shifted. Vietnam emerged as a primary beneficiary, maintaining 5 per cent growth in January and February, while China witnessed a staggering 56 per cent contraction in January shipments to the U.S. market. Despite the overall decline, India demonstrated relative resilience in the man-made fiber (MMF) segment, which grew by 1.01 per cent to $430.29 million in January. This highlights a critical structural shift as global buyers increasingly pivot toward synthetic and high-performance technical textiles, areas where India is aggressively scaling capacity through its Production Linked Incentive (PLI) schemes.
Tariff adjustments and the recovery outlook
The export slump was exacerbated by punitive tariffs that remained in force until February 7, 2026. Although the US Supreme Court subsequently struck down these duties - replacing them with a more competitive 10 per cent global tariff - recovery remains lagged due to missed seasonal order cycles.
Exporters are now looking toward the second half of 2026, banking on improved tariff parity and the potential ratification of the India-UK Free Trade Agreement to stabilize the trade balance.
The Indian textile industry is a $194 billion value chain contributing 8 per cent to the nation's total exports. It dominates the global cotton yarn trade while rapidly expanding into MMF and technical textiles. With a target of $100 billion in exports by 2030, the sector focuses on achieving vertical integration and net-zero manufacturing standards.
Kontoor Brands consolidates Helly Hansen leadership amid global retail expansion
Kontoor Brands has officially appointed Erinn Murphy as the Head - Finance and Operations, Helly Hansen, signaling a decisive move to integrate financial rigor with supply chain excellence. This leadership transition occurs as the outdoor apparel sector faces fluctuating consumer demand, requiring a more synchronized approach between fiscal planning and market delivery. By centralizing these core functions under Murphy, Kontoor aims to optimize Helly Hansen’s operational efficiency, ensuring the brand can scale effectively across its primary European and North American territories. Industry analysts note that this consolidation is a defensive measure against rising logistics costs and an offensive strategy to capture a larger share of the premium technical gear market.
Navigating the omni-channel apparel landscape
The appointment comes at a critical juncture where Helly Hansen is aggressive in its pursuit of direct-to-consumer (DTC) dominance. Current retail data indicates, high-performance brands are seeing a 15 per cent Y-o-Y increase in DTC engagement, a trend Kontoor intends to leverage through enhanced inventory management systems. Efficiency in the modern retail environment is no longer just about the balance sheet; it is about the speed of the global supply chain, notes Marcus Thorne, Apparel Consultant. Despite the volatility in global textile trade, Helly Hansen’s recent performance remains robust, buoyed by a 12 per cent uptick in wholesale volume. Murphy’s primary challenge will involve mitigating the impact of inflationary pressures on raw materials while maintaining the premium margins that define the Helly Hansen portfolio.
Institutional growth and market performance
Kontoor Brands serves as a global powerhouse in the lifestyle and denim sectors, primarily managing the iconic Wrangler and Lee portfolios alongside its high-performance Helly Hansen division. The company operates across more than 60 countries, maintaining a strong foothold in mass-market retail and specialized outdoor segments. Founded as a spinoff from VF Corporation in 2019, Kontoor has focused on debt reduction and margin expansion. Current financial forecasts remain optimistic, driven by a diversified product strategy and a long-term plan to increase digital penetration to 20 per cent of total revenue by the end of the next fiscal cycle.
The Death of the "Stockpile" Model: Inside the Digital Textile disruption at Mumbai’s Gartex Texprocess 2026

For decades, the global textile industry has been a game of high-stakes gambling: manufacture thousands of identical garments, ship them across oceans, and pray the consumer doesn't change their mind. But at the Bombay Exhibition Center this week, a panel of global experts and local disruptors officially called time on the "Produce-to-Pollute" era.
The session, titled "Digital Textile Printing: The Next Frontier of Customization," moved beyond machine specs to deliver a blunt message: The era of the mass-produced warehouse is being replaced by the "just-in-time" digital studio.
The Ford fallacy vs. The Gen Z reality
Moderator Sanjay Chawla (Founder, DFU I FashionatingWorld) set the stage by referencing Henry Ford’s 20th-century logic of "any color as long as it's black." In 2026, Chawla argued that logic is a financial death sentence.
"Today’s customer is individualistic. They don’t want a range you’ve decided for them; they want a design they’ve sparked, on a fabric they trust, delivered yesterday," Chawla noted. This shift from Mass Production to Mass Customization is the engine driving a global market now valued at $3–4 billion, yet in India, penetration remains at a modest 5-7%—a gap the panel identified as a massive "first-mover" opportunity.
The Global Strategy: Water, Pigments, and Politics
While India looks at digital through the lens of efficiency, the global perspective is increasingly driven by survival. Dario Bernasconi (MS Printing Solutions) highlighted that in Europe and Taiwan, "politics" and environmental mandates are the primary drivers.
The global frontier is no longer just about printing; it’s about chemistry. Bernasconi noted a decisive move toward pigment solutions that require zero water, effectively decoupling textile growth from environmental degradation. "We aren't just replacing screens; we are introducing a new type of pigment solution to reduce world pollution," he explained.
Table 1: The Efficiency Gap (Conventional vs. Digital)
|
Feature |
Traditional Rotary/Flatbed |
Digital Inkjet (DTP) |
|
Minimum Order (MOQ) |
20–30 kg / 1,000+ meters |
1 meter / Single Garment |
|
Setup Time |
Days (Screen/Film Prep) |
Minutes (Direct from File) |
|
Labor Requirement |
High (15+ people for volume) |
Low (3 technicians) |
|
Water Usage |
Intensive (Washing/Dyeing) |
Minimal to Zero (Pigment) |
The "Tirupur Dilemma": Can India compete with China?
A poignant moment in the session occurred when an entrepreneur from Tirupur—India’s knitwear capital—expressed fear over cheap Chinese DTF (Direct-to-Film) imports. The panel’s response was a rallying cry for "Atmanirbhar" (Self-Reliant) technology.
Deepak Siddharth K (CEO, RDX Digital Technologies) countered that the price gap is evaporating. By manufacturing both the high-speed machinery and the inks (in collaboration with experts like Dr. M. P. Raghav Rao of Fujifilm Sericol) within India, the "Razor and Blade" cost model is finally favoring domestic printers. "When we manufacture the ink and the machine 50 kilometers from your factory, the Chinese competition disappears," Deepak asserted.
AI: From sketchpad to screen in 20 seconds
The most radical shift discussed wasn't mechanical, but cognitive. AI is now acting as the "bridge" between human imagination and the printer head. Deepak Siddharth K described a world where AI-generated prompts allow anyone to become a designer.
When questioned about file sizes and "humanizing" AI prints, the panel was unanimous: Digital is the only technology that offers exact replication. Conventional methods require a "color master" to manually mix dyes for 20 screens; Digital sees millions of colors as easily as a desktop printer sees a PDF.
The Hybrid Roadmap: A pragmatic transition
For those hesitant to abandon their traditional roots, Arihant Jain of Apparel Tech and the wider panel proposed a "Hybrid Roadmap" as the most pragmatic transition for the Indian market. This strategy is not a total replacement of legacy systems but rather a sophisticated integration where digital and analog technologies work in tandem.
The process begins with the base, where traditional screens are utilized for cost-effective "discharge" printing or applying white under-bases, which remains significantly cheaper via screen than through digital inkjet. Once the foundation is laid, the detail is handled by digital heads, which effortlessly translate intricate, high-resolution AI designs and millions of colors—tasks that would require dozens of manual screens in a conventional setup. The roadmap concludes with the finish, using screens to apply tactile "special effects" like puff, glitter, or foil. Since these physical textures remain a challenge for digital jetting alone, this hybrid cycle allows Indian manufacturers to offer the best of both worlds: the infinite creativity of digital customization paired with the traditional "hand-feel" and special effects that the domestic market continues to demand.
The Narrative of the next five years
As the session concluded, the vision for 2030 emerged as a "Narrative of Uniqueness." The experts predict that packaging will be the next sector to be "digitized," and pigment technology will become the baseline for all ethical brands. Deepak Siddharth K ended with a bold forecast: within five years, digital will capture 30–40% of the Indian market.
The final takeaway for the Mumbai audience was clear: Digital printing is not a "different" way to print; it is a way to stop overproducing and start responding. India has the talent and now the domestic tech—the only missing ingredient is the speed of decision-making.
RSWM unveils ‘In-DIG’o Alchemy’ to capture expanding denim market
Textile flagship of the LNJ Bhilwara Group, RSWM has introduced its Autumn/Winter 2027 denim collection, titled In-DIG’o Alchemy, at the Gartex Texprocess India 2026 expo in Mumbai. This launch comes as India’s denim manufacturing capacity reaches approximately 1,600 million m annually, positioning the nation as the world’s second-largest producer. The collection is segmented into six specialized categories - Pulse, IndieCraft, Nova-Lab, Aerolite, MetroEdge, and Neo-City - engineered to meet the technical demands of high-performance urban wear and artisanal heritage aesthetics.
Capitalizing on global trade shifts
The unveiling aligns with a broader fiscal recovery for RSWM. Despite a moderate 8.2 per cent Y-o-Y revenue decline in Q3 FY26 to Rs 1,104.48 crore, the company achieved a significant 41.7 per cent rise in EBITDA, reaching Rs 82 crore through aggressive cost optimization. Management anticipates a growth catalyst via the recently concluded India-EU Free Trade Agreement, which removes tariffs of 8 per cent to 12 per cent, placing Indian denim on a level playing field with competitors like Bangladesh and Vietnam.
Innovation as a growth lever
The response to In-DIG’o Alchemy at Gartex 2026 confirms, the market is gravitating toward fabrics that balance scientific precision with responsible manufacturing, noted Rajeev Gupta, Joint Managing Director. To support this momentum, RSWM is executing a Rs 92 crore capital expenditure plan for knitted fabric expansion, aiming for full operational status by H1 FY2027. This initiative targets the fashion-intensive segment, including athleisure and loungewear, which currently commands 35 per cent of the knitted fabric market.
RSWM Limited is a premier Indian textile manufacturer specializing in high-quality synthetic, blended, and denim fabrics. Operating primarily in the B2B apparel and retail supply chains, the company exports to over 70 countries. Current growth strategies focus on high-margin value-added segments and sustainable ‘green’ fibers, supported by a robust recovery in bottom-line profitability despite global inflationary pressures.
Epic Group anchors Odisha as India’s next global hub for sustainable apparel
The landscape of Indian textile manufacturing is undergoing a significant transition as the Hong Kong-based Epic Group prepares to inaugurate its first Indian manufacturing facility in Khurda, Odisha, on April 29, 2026. This Rs 220 crore investment marks a strategic pivot for the global garment leader, choosing Odisha’s burgeoning industrial ecosystem over traditional textile clusters in Western or Southern India. The 40-acre facility, operated via subsidiary Trimetro Garments India, is a cornerstone of a broader US $100 million expansion plan designed to leverage India’s vertically integrated fiber-to-fabric supply chain amid shifting global sourcing patterns.
Decarbonization and the net-zero manufacturing standard
Setting a new benchmark for technical textiles and apparel production, the Bhubaneswar-area unit is engineered to be net-positive in both energy and water. A critical innovation within the facility includes the world’s first deployment of high-temperature electric heat pumps for industrial laundry, developed in collaboration with Tonello Italy. By eliminating coal-fired boilers, Epic Group addresses the intensifying ESG demands from its top-tier clients, including Walmart and Levi Strauss & Co. Furthermore, the use of India’s first ‘green steel’ TMT bars in its construction underscores a commitment to minimizing embodied carbon across the entire textile value chain.
Economic impact and strategic workforce integration
The facility is projected to generate over 6,000 direct jobs, with a targeted focus on increasing female labor participation in the garment sector - a move supported by Odisha’s generous employment subsidies of up to Rs 7,000 per month for female workers. This inauguration coincides with a ‘second industrial revolution’ in the state, where major players like Page Industries and MAS Holdings are also grounding projects.
Epic Group is a premier Hong Kong-based apparel manufacturer producing 90 million garments annually for global giants like Uniqlo and Amazon. With a presence in Bangladesh, Jordan, and Vietnam, the group is now expanding aggressively into India to achieve a half-billion-dollar valuation by 2030 through net-zero, tech-driven production.
Apparel Group secures first Gulf foothold for Anne Klein in Oman expansion
Apparel Group has officially initiated the Gulf-wide rollout of the American heritage brand Anne Klein, debuting its first physical retail presence at Avenues Mall in Oman. This entry marks a strategic pivot for the brand as it seeks to capture the Middle Eastern luxury-accessible market, utilizing Oman as the initial launchpad for a broader regional footprint. By securing a 1,600-sq-ft location, the Dubai-based retail conglomerate is betting on a resurgence of interest in classic, versatile fashion among the region's professional female demographic.
Strategic positioning in the GCC luxury-accessible market
The opening represents more than a single store launch; it signifies a move by Apparel Group to diversify its portfolio of over 85 international brands with a label specifically targeting the ‘sophisticated yet accessible’ niche. Moving away from pure fast-fashion models, the partnership with WHP Global - the owner of the Anne Klein brand - focuses on a curated selection of handbags and accessories. This selection is designed to meet the growing demand in the Gulf for functional elegance, catering to women who prioritize durability and timeless design over transient trends.
Leveraging local retail infrastructure for regional growth
Choosing Avenues Mall in Oman as the inaugural site highlights the Sultanate’s increasing importance within the GCC retail landscape. Apparel Group, which operates a network of over 2,500 stores globally, is leveraging its established logistical and operational framework in Oman to test the brand's regional resonance. NeerajTeckchandani, CEO notes, the brand's heritage of female empowerment and practical style aligns with local consumer behavior, suggesting that this flagship location is the precursor to further expansion across the neighboring markets of Saudi Arabia, Kuwait, and the UAE.
Nonwovens industry targets high-value diversification amid production surpluses
As the global nonwovens sector prepares to convene at Palexpo in Geneva this May, the industry faces a dual challenge: managing significant production overcapacity while navigating a tightening web of international sustainability regulations. The upcoming Index 26, organized by Edana, has repositioned its strategic briefing program to act as a survival roadmap for the 12,000 attendees expected, shifting the focus from simple volume manufacturing toward high-margin technical applications.
Navigating global subsidies and regulatory shifts
A central pillar of this year’s strategy involves securing the capital necessary for large-scale industrial transitions. With competition intensifying between European and American markets, industry leaders are prioritizing access to public funding. Key sessions will detail how manufacturers can leverage EU and US incentive programs to underwrite research and development and meet new mandates regarding single-use plastics. This move signifies a shift toward a ‘regulatory-first’ business model, where compliance is treated as a competitive advantage rather than a mere cost center.
Engineering resilience in specialized global markets
To combat market saturation in traditional hygiene sectors, the industry is pivoting toward specialized infrastructure and mobility solutions. Technical briefings will highlight how nonwoven materials are being re-engineered for next-generation autonomous vehicles and high-efficiency filtration systems. By focusing on lightweight, noise-reducing interiors and advanced geosynthetics for construction, manufacturers aim to diversify their portfolios. This tactical expansion into the automotive and medical sectors represents the industry’s primary defense against fluctuating demand in consumer commodity markets.
Strengthening supply chain integrity and transparency
As corporate accountability becomes a non-negotiable requirement for global brands like Procter & Gamble and Bostik, the sector is introducing standardized auditing benchmarks. The rollout of the new QAP audit report aims to provide a unified framework for quality and consistency across the global supply chain. By formalizing these transparency measures, the industry seeks to professionalize the value chain, ensuring that sustainability claims are backed by verifiable data—a necessary step for long-term stability in an increasingly scrutinized global economy.
Gartex 2026 ignites India’s $100 billion textile export ambition
The 2026 edition of GartexTexprocess India opened in Mumbai this week, signaling a critical shift for a domestic industry racing to meet the government’s ‘Vision 2030’ targets. As the Ministry of Textiles pushes to nearly triple exports from the current US$ 36 billion to a massive US$ 100 billion by the end of the decade, the exhibition serves as the primary staging ground for the high-tech automation and sustainable machinery required to bridge that gap.
Modernization as a catalyst for export growth
With India already established as the global leader in cotton acreage and the second-largest producer of polyester and silk, the focus has shifted from raw material dominance to advanced manufacturing. The opening ceremony, attended by Ajay Pandit, Additional Textile Commissioner and leaders from the Denim Manufacturers Association, underscored a strategic transition. To remain competitive against global peers, the sector is moving toward high-speed embroidery, digital printing, and automated laundry solutions that reduce lead times and improve precision in garment assembly.
Fast Retailing upgrades full-year earnings guidance for 2026
Parent group of Uniqlo, Fast Retailing Co has significantly upgraded its full-year 2026 earnings guidance following a record-breaking first half. According to the April 9, 2026, financial disclosure, the group’s consolidated revenue for the six months ending February 2026 increased by 14.8 per cent Y-o-Y to ¥2.06 trillion ($13 billion). While Uniqlo Japan posted a robust 7.4 per cent revenue gain, the primary engine of growth remains Uniqlo International, whose revenue increased by 22.4 per cent to ¥1.24 trillion. This performance highlights a structural shift toward a more profitable "year-round" product architecture, allowing the retailer to mitigate seasonal weather risks and maintain high-volume sell-through across diverse global climates.
Operational precision amidst macroeconomic volatility
The upgraded forecast - now projecting a fifth consecutive year of record earnings with a full-year operating profit of ¥700 billion - comes despite narrowing margins in the domestic market due to a weak yen. To counter rising procurement costs, which contracted Uniqlo Japan’s gross profit margin by 0.2 percentage points, Fast Retailing is doubling down on ‘convenience-luxury’ basics and advanced material science. The group is aggressively expanding its footprint of global flagship stores, with Uniqlo International’s business profit jumping 37.4 per cent. Our successful branding strategy, centered on year-round items like wide-leg trousers and technical knits, is driving customer trust across all major markets, including North America and Europe, notes Takeshi Okazaki, CFO during the earnings call.
Strategic shift to high-margin sub-brands
Beyond its core Uniqlo label, the group is successfully repositioning its GU brand, which saw business profit climb 20.1 per cent to ¥15.7 billion through tighter product offerings and improved volume planning. This ‘lean inventory’ model is a direct response to a 15 per cent rise in regional freight costs and geopolitical supply chain disruptions. As the group prepares to reach 3,551 global stores by August 2026, its focus remains on vertical integration and technological adoption to stabilize input costs. With a revised annual dividend of ¥640 per share, Fast Retailing’s fiscal resilience underscores its dominance in the global apparel sector as it moves toward a long-term revenue target of ¥10 trillion.
Fast Retailing is a leading global apparel holding company, primarily known for its Uniqlo and GU brands. Operating over 3,500 stores worldwide, the group focuses on high-quality, functional basics across all major international markets. With a projected FY26 revenue of ¥3.9 trillion, it is currently scaling its flagship retail presence in North America and Europe.











