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Designed to make many consumer goods cheaper, India's recent tax overhaul is causing concern for global fashion brands like Zara, Levi Strauss, and Lacoste. Under the new law, apparel priced at more than Rs 2,500 (about $29) will be taxed at 18 per cent, a significant increase from the previous rate of 12 per cent. Meanwhile, clothing below that price will see a reduced tax of just 5 per cent.
This change could be a major setback for the premium apparel segment, which makes up about 18 per cent of India's $70 billion fashion industry. This sector has been fueled by a growing number of wealthy and brand-conscious young people. However, executives are worried that this demographic is still price-sensitive.
Retail operates on razor-thin margins, and overheads like rent are extremely high, said a CEO of a foreign brand in India. The growth expected earlier won't happen now, the official added
This tax increase is a ‘double whammy’ for domestic garment makers. In addition to the new domestic tax, their thriving export business to the US is already struggling with a 50 per cent tariff imposed by the previous presidential administration.
In a surprising twist, the same tax reform that raised levies on clothing actually lowered them on expensive goods like luxury SUVs, reducing their tax rate to a flat 40 per cent. The Clothing Manufacturers Association of India (CMAI) has warned that the higher tax on apparel could be a ‘death knell for the industry’ since clothes priced over Rs 2,500 commonly purchased by the middle class.
For brands like Superdry India, most of its products, including jackets and shirts, now fall under the new 18 per cent tax. Similarly, not a single men’s T-shirt on the Lacoste India website is priced below the new $29 tax threshold. The tax hike is also expected to impact the clothing budget for weddings, a major business in India.
Scheduled to be held from September 10-12, 2025 in Istanbul, the 8th annual Texhibition Istanbul Fabric, Yarn, and Textile Accessories Fair, has emerged as a central hub for the global textile industry. Organized by ITKIB Fairs In, this event brings together production, innovation, and sustainability with an export-driven focus.
The upcoming event will feature over 500 exhibitors across 40,000 sq m, attracting more than 25,000 visitors from the US, Europe, North Africa, and the Middle East. This makes the fair a key gateway for companies looking to expand their global presence.
More than just a marketplace; the fair serves as a platform for innovation. Attendees will find specialized zones like the Innovation Hub, which showcases smart textiles and AI-driven processes, and the Trends Lab, where fabrics tell a story about future design directions. The Blue Black Texhibition zone, in particular, will highlight Turkey's leadership in denim, featuring top manufacturers like Bossa and ISKO.
Texhibition Istanbul has rapidly developed into one of the most important global platforms for the textile industry, says Ahmet Öksüz, Chairman, İTHİB. With every edition, the fair not only connects Turkey’s strong and diverse manufacturers with international buyers but also demonstrates how innovation, sustainability, and creative vision can shape the future of textiles, he adds.
Including everything from woven and knitted fabrics to yarn and accessories, the fair’s comprehensive offerings attract a diverse audience of decision-makers. It serves as a vital platform for building partnerships and securing business opportunities, likely to influence the future of global textile industry, by uniting producers, brand managers, designers, and retailers.
At the upcoming ITMA Asia + CITME exhibition in Singapore, a delegation of 20 British Textile Machinery Association (BTMA) companies will showcase how their technologies are supporting highly advanced industries, from medicine to aerospace.
A leader in fiber production, UK's Fiber Extrusion Technology (FET) will unveil a new parallel technology for the medical sector that uses supercritical CO2. Another FET innovation is a flexible, small-scale process for manufacturing ultra-high molecular weight polyethylene (UHMWPE), a material ten times stronger than steel. This new batch system, which addresses the industry's need for smaller quantities of specialized UHMWPE fibers, is a ‘game-changer,’ according to Richard Slack, Managing Director, FET.
In the aerospace sector, technologies like Automated Fiber Placement (AFP) and Automated Tape Laying (ATL) are used to create lightweight yet strong aircraft parts, such as fuselage sections and wing skins. UK's Cygnet Texkimp has developed a new production-scale tape slitting machine to assist this industry. This technology can slit tapes at speeds up to 60 meters per minute, allowing partners to test materials and concepts in real-world conditions.
Airbond is also supporting the aerospace industry with its pneumatic yarn splicing technologies. These systems join filaments together to create a joint that is stronger and flatter than a knot, ensuring resource efficiency when processing expensive carbon and aramid fibers.
High-value industries such as aerospace, defense, renewable energy, and the medical sector are areas of high growth and opportunity, says Jason Kent, CEO, BTMA. A key factor in the success of BTMA members is the strong collaboration between industry and UK universities, he notes.
The Apparel Export Promotion Council (AEPC) and Tiruppur knitwear exporters have applauded the latest reforms from India's GST Council, which are expected to drive new growth for the nation's apparel sector.
The organizations have hailed some of the major changes in these reforms, including faster export refunds and more streamlined GST rates, as critical steps toward boosting India's GDP. Industry leaders believe, these reforms will support Indian exporters and align with the country's ‘Make in India’ initiative.
The council has expressed gratitude to government officials, stating, these measures will empower the broader textile industry and improve the standard of living for many citizens. This move is seen as a sign of the industry's strong partnership with the government's national reform efforts.
Bangladesh's apparel exports to the United States grew by an impressive 21.66 per cent Y-o-Y in the first seven months of 2025, solidifying its position as one of the fastest-growing clothing suppliers to the world's largest market.
From January to July, Bangladesh exported apparels worth $4.98 billion to the US, significantly outpacing the overall US apparel import growth of just 4.96 per cent during the same period. In terms of volume, the number of garments from Bangladesh imported by the US increased by 20.33 per cent, while the average unit price rose by a modest 1.11 per cent.
This strong growth proves Bangladesh is consolidating its position as one of the most reliable sourcing destinations for global buyers, says Mohiuddin Rubel, Former Director, BGMEA and Managing Director, Bangladesh Apparel Exchange. Even as China's apparel exports to the US declined by more than 21 per cent, Bangladesh gained significant ground with both volume and value increases, he adds,
Once the undisputed leader in global apparel exports, China’s shipments to the US declined by 21.01 per cent in value and nearly 16 per cent in quantity. It’s average unit price also lowered by 6.05 per cent.
Meanwhile, several other Asian competitors experienced double-digit growth: Vietnam’s exports increased by 16.94 per cent, while shipments from India rose by 16.10 per cent, Pakistan by 11.81 per cent, Indonesia 16.80 per cent, and Cambodia 24.45 per cent. Cambodia emerged as largest exporter with a 31.11 per cent rise in the number of pieces shipped, with Bangladesh close behind at 20.33 per cent.
The combination of competitive costs, strong compliance, and sustainability credentials is helping Bangladesh win orders that previously went to China, states Rubel.
Industry experts say Bangladesh's growth is about more than just a diversion of orders. The country’s investments in green factories, worker safety, and social compliance over the past decade have made it an attractive sourcing hub for US and European retailers.
Global buyers are increasingly prioritizing sustainable supply chains, Bangladesh with its highest number of green factories is delivering on that front, Rubel affirms.
At the same time, Bangladesh’s ability to produce large volumes of basic apparel at competitive prices gives it an advantage. The small 1.11 per cent increase in unit prices suggests that buyers are still getting value for their money, while suppliers are enjoying slightly improved margins.
As part of the ‘TN Rising Europe’ investment delegation, MK Stalin, Chief Minister, Tamil Nadu signed several memoranda of understaning (MoUs) in the United Kingdom.
These MoUs were signed with several companies in the textile technology and garment sectors. According to the government, these agreements represent long-term strategic moves for Tamil Nadu into high-value sectors, with the goal of positioning the state as a national and global leader in these niche fields.
One of the key agreements was with a subsidiary of the UK-based Britannia Garment Packaging, Britannia RFID Technologies India. The company will invest $58.97 million to build a high-capacity RFID tag manufacturing facility in Tirupur and Namakkal. The project is expected to create 550 jobs and will help digitize the supply chain and improve traceability in the garment industry, the government adds.
H&M Group’s fashion and lifestyle brand, & Other Stories introduced a new ‘brand spirit’ including a new capitalized logo under the leadership of Jonathan Saunders, Creative Director.
Having joined the company in April, the British designer replaced the brand's former handwritten design with a fresh tone of voice.
The new campaign celebrates real clothes for everyday experiences, designed to inspire individuality, says Saunders. It combines nostalgia with modernity and signifies an exciting new chapter for & Other Stories, he adds,
The first part of the Autumn/Winter collection is called ‘modern nostalgia.’ Inspired by the 60s, 70s, and 90s, it features progressive silhouettes, vintage-inspired lived in textures and a fluid attitude, juxtaposed with technical fabrics, like mohair, croc-effect leather, jacquard, and corduroy.
& Other Stories adds, these re-imagined everyday pieces with an elevated edge were created for ‘individuals who embrace self-expression.’ This individuality is highlighted through the styling, where ‘youthful energy is expressed through laid-back layering and unexpected pairings.’
Key pieces from the September collection include a croc-effect leather bomber jacket, tailored pencil skirts, slouchy wool coats, and fuzzy mohair knit sweaters. The accessories also have nostalgic touches, from 70s-inspired eyewear to chunky gold necklaces and leather bags.
Pioneering Swedish technology company, BPC Instruments is diversifying its business into the textile industry. The company recently received an order for its BPC Blue platform from a global German company that specializes in adhesives, sealants, and functional coatings. This move highlights the growing demand for accurate biodegradability testing of materials within the textile and apparel sector.
The German company plans to use the BPC Blue platform to enhance its assessment of material biodegradability, helping it meet sustainability goals and regulatory standards. For BPC Instruments, this order is considered a strategic win.
The BPC Blue platform measures oxygen uptake as materials break down, providing a fast and reliable way for manufacturers to evaluate material performance and qualify sustainable alternatives. This technology gives textile and apparel companies the precise data they need early in the development process, which helps reduce operational risks and move toward a more circular and sustainable supply chain.
Dr. Jing Liu, CEO, BPC Instruments, states, expanding the application of BPC Blue into textiles and apparel confirms the relevance of this technology. By giving manufacturers clarity and precision in material evaluation, BPC Blue supports a faster shift toward sustainable and efficient value chains.
BPC Instruments develops and provides analytical instruments that help companies in the renewable bioenergy and environmental biotechnology industries. The company's innovative products offer high-quality hardware and software that save time and labor while delivering accurate results. BPC Instruments exports to nearly 80 countries and is listed on the Spotlight Stock Market in Sweden.
Mahmud Hasan Khan, President, The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is urging global clothing retailers and brands to increase their orders from Bangladesh. Khan highlights the country's tariff advantages over competitors in the United States during a meeting with international buyers in Dhaka.
Emphasizing on the importance of sourcing more from Bangladesh, Mahmud Hasan Khan, President, BGMEA, calls for a unified compliance framework. Suppliers face significant challenges as different companies enforce varying standards for social, compliance, and other key audits. It would be beneficial for all sourcing firms to adopt a common code, he states.
Khan also encourages US retailers and brands to consider reducing tariffs on Bangladeshi apparel to further improve its competitiveness. The meeting also explored ways to diversify products to attract a wider range of business opportunities.
In total, 42 representatives from European, American, and Asian companies participated in the forum, showing a continued interest in Bangladesh's garment sector.
American Eagle Outfitters is betting on promotions and new products to drive sales, leading the company to forecast better-than-expected comparable sales in Q3, FY25. The news caused the apparel retailer's shares to jump 25 per cent after the market closed.
Apparel companies like American Eagle and Abercrombie & Fitch have been able to overcome a retail sector slowdown by using promotions and targeting more affluent consumers.
American Eagle has been trying to boost demand through its marketing campaigns, including the controversial ‘Great Jeans’ denim campaign featuring actress Sydney Sweeney. This follows previous partnerships with tennis player Coco Gauff and actress Jenna Ortega. The apparel maker has also entered into a partnership with NFL player Travis Kelce's clothing brand, Tru Kolors.
The company expects its quarterly comparable sales to increase by a low single-digit percentage. This is a positive forecast, especially since analysts were expecting a 0.3 per cent decline, according to data from LSEG.
American Eagle also expects its annual comparable sales to remain flat compared to the previous year, while analysts had estimated a 1.1 per cent decline.
