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In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman unveiled a series of new initiatives to boost the domestic production of technical textiles. Highlighting the importance of these specialized fabrics, used in sectors like agriculture (agro-textiles), healthcare (medical textiles), and construction (geo-textiles), Sitharaman said, the budget aims to make India a major player in this growing market.
A key component of the government’s plan involves incentivizing the adoption of modern manufacturing technologies in this segment. For this, it has exempted two new types of shuttle-less looms from import duties. This will help make these advanced machines more accessible to domestic manufacturers, driving innovation and increasing production efficiency, affirmed Sitharaman. Modernizing the manufacturing base is crucial to competing globally, she added.
Addressing the pricing dynamics of the industry, Sitharaman announced a revision to the Basic Customs Duty (BCD) on knitted fabrics. This adjustment impacts nine tariff lines, shifting from a variable rate of 10 per cent or 20 per cent to a fixed rate of 20 per cent or Rs 115 per kg, whichever is higher. This change aims to create a more predictable and stable tariff structure, which the government believes will benefit the domestic textile industry. The goal is to encourage self-reliance and promote growth by ensuring fair competition against imports.
These combined measures are expected to provide a significant boost to India's technical textile sector. By encouraging investment in advanced machinery and streamlining the tariff structure, the government hopes to foster innovation, improve product quality, and ultimately increase the global competitiveness of Indian technical textiles.
Marks & Spencer (M&S) is doubling down on its commitment to affordability by cutting prices on over 300 ‘family favorite’ products, with a focus on children's clothing. The retailer is emphasizing on its dedication to providing trusted value and everyday low prices for its 32 million customers.
The latest price reductions target over 100 items in M&S's ‘everyday essentials’ kidswear range, with savings of up to 20 per cent. Popular items like cotton-rich hoodies and joggers, as well as sweatshirts, leggings, and t-shirts, are now priced at just $7 (approximately £5.50). These price cuts will not affect the quality or high sourcing standards the brand is known for, M&S assures customers.
Alexandra Dimitriu, Director –Kidswear (Clothing & Home), M&S, explains, nowadays customers look for trusted value in their apparel purchases. More than just price, they emphasize on the product’s value and seek assurance that it is well-made, sustainable and versatile, he adds.
In its recent holiday shopping season, M&S Group sales rose by 5.6 per cent to $5.1 billion (approximately £4.064 billion). The group’ Clothing, Home & Beauty segment reported a modest 1 per cent increase in sales, reaching $1.6 billion (approximately £1.305 billion). Like-for-like sales in this category rose by 1.9 per cent, while underlying sales grew by 2.6 per cent, exceeding market growth.
President Donald Trump has revoked the long-standing $800 de minimis tariff exemption, dealing a blow to Chinese e-commerce giants like Temu, Shein, Alibaba, and JD.com. The change, part of new trade levies25 per cent on Canada and Mexico and 10 per cent on Chinaeliminates the duty-free status of small-value shipments to the US.
Previously, Chinese retailers bypassed tariffs by shipping directly to American consumers, leveraging the exemption to undercut domestic businesses. US Customs estimates that $48 billion worth of goods entered under this loophole in the first nine months of last year. The shift will likely drive up costs for bargain shoppers who relied on discount platforms.
The White House did not clarify whether the de minimis rule change applies solely to new tariffs or extends to existing levies. However, trade experts suggest it could broadly impact all Chinese, Canadian, and Mexican imports.
A senior administration official defended the move, citing lost tariff revenue and national security concerns, particularly fentanyl trafficking. Lawmakers have warned that small-value shipments make it easier to smuggle illicit substances into the US.
Temu has already begun importing goods in bulk and storing them in US warehouses to mitigate the impact, but the change threatens its discount-driven model.
Trump’s tariffs, aim to penalize China, Canada, and Mexico for allegedly failing to curb fentanyl flows and illegal immigration.
Valued at $764.4 billion in 2024, the global e-commerce apparel market is projected to reach $1.2 trillion by 2030, growing at a compound annual growth rate (CAGR) of 7.8 per cent. As per a report by ResearchAndMarkets.com, this growth will be fueled by several key factors, including shifting consumer habits, technological advancements, and adaptive business models.
Titled, ‘E-Commerce Apparel-Global Strategic Report,’ the analysis says, consumers are increasingly turning to online shopping for its convenience, speed, and vast selection. The rise of smartphones and mobile apps has made shopping anytime, anywhere, a reality. Improved internet access and secure online payment systems have further broadened the reach of e-commerce, particularly in developing markets where online shopping is becoming increasingly popular.
Combined with the affordability and ease of online shopping, the rising demand for fast fashion is a major market driver of this growth. E-commerce platforms can quickly adapt to trends, offering new collections, discounts, and flash sales, which encourages frequent purchases. The ability to access international brands online expands consumer choice, creating a global apparel marketplace. This preference for online shopping, especially among younger, tech-savvy generations, is expected to continue driving market expansion.
Technological innovations are constantly enhancing the online shopping experience. Features like AI-powered recommendations, augmented reality (AR) virtual try-ons, and streamlined checkout processes improve customer satisfaction. Data analytics help businesses optimize their supply chains and better meet consumer demand. These technological advancements ensure that e-commerce apparel brands remain competitive, contributing to the overall market growth.
Within the market, women's apparel segment is projected to grow at a CAGR of 7.7 per cent to $827.8 billion by 2030. Meanwhile, the men's apparel segment is poised to grow at a CAGR of 8.5 per cent over the forecast period.
Popular clothing retailer, H&M is introducing a new clause in its returns policy. Starting February 3, 2025, the brand will charge a $2.95 fee for return of items ordered online. This fee will be deducted from the customer's refund.
Previously, H&M loyalty members did not have to pay any return fees. However, from now, all of the brand’s customers, including loyalty members, will have to pay these new fees.
There are a few exceptions to this new though. Customers returning faulty items or items returned in H&M stores will not be charged this fee. Additionally, if customers return an item within 14 days of receiving it, they will be exempted from the return fee.
H&M says, customers can return any or all items in their order within 28 days of receiving it. If a customer chooses to return an item, H&M will refund the order value and the cost of delivery, but will deduct a return fee of $2.95. If a customer chooses to keep some items and only return part of their order, the delivery cost will not be refunded and H&M will still deduct a return fee of $2.95.
The brand will use same payment method used by the customers while placing the order to refund them. If a customer does not receive their refund within 14 days, they can contact the H&M Customer Service. For any returns made after 28 days, H&M will refund the customer via an e-Merchandise Card.
According to H&M, The new fee will help the brand offset the cost of processing returns.
French luxury goods company, Kering has sold its ‘The Mall Luxury Outlets’ business in Italy to a US real estate company, Simon Property Group.
Owner of Gucci and other luxury brands, Kering will gain approximately $365 million from the sale. The global economic slowdown in luxury spending has impacted Kering more than its competitors with the company registering declines in both sales and profits.
Earlier this month, Kering also sold a majority stake in three properties in Paris to Ardian, a French private equity firm. That deal generated net proceeds of around €837 million ($861 million).
‘The Mall’ operates two luxury outlet centers in Italy, one near Florence and the other in Sanremo. Kering described the outlet business as ‘non-core’ as it aims to reduce its involvement in outlet retail. However, Kering's brands will continue to have a presence in both Italian locations after the sale.
The American Apparel & Footwear Association (AAFA) has strongly criticized President Donald Trump’s decision to impose tariffs on all US imports from Mexico, Canada, and China, warning of severe economic fallout.
"These widespread tariffs will inject massive costs into our inflation-weary economy and risk a damaging tit-for-tat trade war," said AAFA President and CEO Steve Lamar. He stressed that the US should strengthen ties with free trade partners instead of undermining critical agreements.
Nate Herman, AAFA’s senior vice president of policy, echoed the concerns, emphasizing that businesses need tariff relief, not additional costs. "At a time of high inflation, this is a step in the wrong direction. We need to renew expiring trade preference programs and strengthen our free trade agreement with Central America to address key economic and migration challenges," he stated.
The AAFA urges the administration to pursue policies that bolster supply chains and competitiveness rather than increasing burdens on US manufacturers, farmers, and consumers.
The Istanbul Fashion Connection (IFCO) will return for its seventh edition from February 5-8, 2025, at the Istanbul Expo Center. This event, now Europe’s largest fashion fair, is set to attract over 30,000 visitors, including key international players from the fashion industry. Spanning 35,000 square meters across 8 halls, IFCO will feature over 500 exhibitors, presenting the latest trends and innovations in apparel, footwear, and accessories.
According to IHKIB Vice President Mustafa Paşahan, Turkey’s fashion industry plays a vital role in its economy, contributing to exports and job creation. As the sixth-largest global supplier and third-largest to the EU, Turkey’s fashion sector continues to expand, with its brands available in over 100 countries. IFCO serves as a platform for these brands to showcase their creativity and excellence to a global audience.
The exhibition will feature diverse segments, including womenswear, menswear, kids fashion, denim, and sustainable innovations. Notable areas include The Core Istanbul, which will host 25 leading designers such as Meltem Ozbekand Tuba Ergin, and The Fashionist area, with fashion shows and displays of high-quality evening wear. A dedicated space for Turkish lingerie and hosiery will spotlight the country’s export success in these industries.
The event also emphasizes sustainable fashion, aligning with the EU’s eco-design initiative. Visitors can explore cutting-edge sustainable designs and participate in curated matchmaking sessions to forge valuable business connections. IFCO’s extensive seminar and workshop programs will offer insights into current fashion trends, social media’s impact, and the future of fashion marketing.
With an expected 30,000 visitors, IFCO 2025 will set new standards for creativity, networking, and innovation, making it an unmissable event for fashion professionals worldwide.
The Confederation of Indian Textile Industry (CITI) has welcomed the Union Budget 2025-26, highlighting a 57.7 per cent increase in textile sector allocation. A key driver is the enhanced Rs 1,148 crore funding under the Production Linked Incentive (PLI) scheme.
CITI Chairman Rakesh Mehra praised the launch of the Mission for Cotton Productivity, addressing a long-pending industry demand. The initiative aims to improve cotton farming efficiency and boost extra-long staple cotton production, reducing import dependency while enhancing sustainability.
The budget's focus on technology and competitiveness is evident in revised tariff structures for knitted fabrics, customs duty exemptions for shuttleless looms in technical textiles, and an Export Promotion Mission. These steps support the sector’s goal of reaching a $350 billion market size by 2030.
MSMEs, contributing over 45 per cent of India's exports, benefit from improved credit access. However, CITI continues to advocate for a hybrid support model combining capital subsidies with performance-based incentives.
The new tax regime is expected to boost consumer spending, driving demand for textiles. CITI also anticipates greater flexibility in import-related compliance and Quality Control Orders (QCOs), streamlining the supply chain and enhancing industry growth.
The Union Budget 2025-26 has made significant strides toward boosting the global competitiveness of India’s textile industry, a sector that employs 110 million people, predominantly in rural areas. The government’s vision aims to grow the textile industry from $162 billion to $350 billion and increase exports from $35 billion to $100 billion by 2030.
The Southern India Mills Association (SIMA), representing the textile value chain in South India, welcomed the budget’s focus on addressing structural issues to enhance competitiveness. One key initiative is the Rs600 crore allocation for improving cotton productivity and sustainability. This will focus on promoting high-yielding seeds, enhancing agronomy practices, and branding Indian cotton, aligning with the Prime Minister’s 5F Vision (Farm to Fibre to Factory to Fashion to Foreign). Cotton remains the backbone of the textile industry, accounting for around 80 per cent of exports. However, India’s production of extra-long staple (ELS) cotton has declined, and the industry has been forced to import a significant portion of its ELS needs. The budget’s emphasis on improving domestic ELS cotton production aims to boost exports and reduce reliance on imports.
SIMA Chairman also highlighted that the Ministry of Agriculture and Ministry of Textiles are working on a Special Project covering 15,000 hectares of land across leading cotton-producing states, focusing on high-density planting and improving ELS cotton productivity. Pilot projects have shown potential to increase productivity by 30-50 per cent. Furthermore, the Cotton Textile Export Promotion Council (TEXPROCIL), in collaboration with other employer organizations, launched ‘Kasturi Cotton Bharat,’ a branding initiative for high-quality Indian cotton.
Additionally, the budget’s revision of MSME turnover limits will benefit the predominantly small-scale textile industry, providing easier access to fiscal and non-fiscal support. Measures to curb cheaper imports, such as the 20 per cent import duty on knitted fabrics, will also encourage domestic production. The extension of customs duty exemptions on key machinery like shuttleless looms, knitting, and garmenting equipment will further support growth.
SIMA also praised the government's Export Promotion Mission, which will improve access to export credit, cross-border factoring, and assistance with non-tariff measures such as sustainability certifications. These steps will support the MSME sector, enhance infrastructure, and bolster skill development initiatives, significantly strengthening India’s textile industry on the global stage.
