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Jharkhand has unveiled a strategic initiative to integrate its artisanal textile traditions into the global marketplace, showcasing six Geographical Indication (GI)-tagged handloom products at the Bharat Tex 2026 summit in New Delhi. By highlighting the unique cultural and structural attributes of Tassar Silk, Kuchai Silk, Bhagaiya Saree and Fabric, Tumka Chadar, Bhoya Saree and Fabric, and Pancho Saree and Fabric, the state aims to transcend local boundaries and establish a significant presence in international apparel supply chains. This pavilion serves as a deliberate effort to pivot from traditional, fragmented local trade toward a structured, high-value export model that leverages the authenticity and provenance associated with GI certification.

Strategic economic empowerment for artisans

The initiative is designed to address systemic challenges within the rural artisan economy, including migration and market dilution. Sanjay Prasad Yadav, State Industries Minister notes,  formalizing the recognition of these textiles is vital to creating sustainable livelihoods and preventing the erosion of centuries-old weaving knowledge. By aligning with national export goals, which target a $350 billion textile industry valuation, Jharkhand is focusing on scaling production capabilities to meet the quality and volume requirements of global retailers. This approach not only safeguards indigenous intellectual property but also positions rural clusters as specialized hubs capable of delivering heritage-led, sustainable fashion to the discerning modern consumer.

Jharkhand’s artisanal textile sector

Jharkhand is a significant hub for indigenous handloom and handicrafts, characterized by its rich tribal forest belt traditions. The state produces natural fibers, including wild Tussar and organic silk. Driven by Jharcraft, it is currently scaling its export infrastructure to support tribal artisans and integrate products into global markets.

 

In a strategic effort to integrate circular economy principles into mass-market apparel, materials science company Recover has announced a formal partnership with Turkish textile manufacturer Ünteks Group. This collaboration focuses on embedding high-quality, low-impact recycled cotton fiber into an extensive range of circular knit fabrics and finished garments. By combining Recover’s proprietary recycled material with Ünteks’ vertically integrated manufacturing capabilities - spanning knitting, dyeing, printing, and final garment assembly - the partners aim to provide global retailers with scalable, sustainable solutions for high-volume, everyday products.

Optimizing industrial integration

The partnership addresses the technical challenges of maintaining consistency when incorporating recycled fibers into large-scale production. All fabrics in the new collection feature a minimum of 20 per cent Recover recycled cotton, a threshold selected to balance environmental performance with the rigorous quality standards required by international fashion brands. Hakan Kılıç, CEO,  Ünteks Group, noted, significant effort was dedicated to refining production processes to ensure the recycled material performs reliably across diverse knit constructions, including jersey, fleece, and interlock. This operational agility, supported by Ünteks’ proximity to European markets and a monthly output capacity of 1.5 million garments, positions the initiative to shorten supply chains and accelerate the adoption of circular materials in the competitive retail landscape.

Driving large-scale sustainable textile output

Ünteks Group is a prominent, vertically integrated textile manufacturer headquartered in Turkey, established in 1992. The company specializes in cotton yarn, knitted fabrics, and apparel, operating across four major facilities. With a robust production capacity and a focus on OEKO-TEX certified quality, Ünteks serves a diverse global client base, leveraging advanced manufacturing infrastructure to drive large-scale, sustainable textile output.

 

In a significant move to boost India’s textile footprint, Amazon India and The Cotton Textiles Export Promotion Council (TEXPROCIL) signed an MoU during Bharat Tex 2026 in New Delhi. This partnership aims to accelerate e-commerce exports by enabling thousands of cotton textile manufacturers and exporters to tap into Amazon’s vast international marketplaces, including the United States, United Kingdom, and Canada. As the sector demonstrates resilience - with total textile exports rising to Rs 3.16 trillion in FY 2025–26- this collaboration serves as a vital bridge for businesses seeking to transition from traditional trade channels to direct-to-consumer global models.

Empowering manufacturers through knowledge and access

The initiative addresses critical barriers to entry for micro, small, and medium enterprises (MSMEs) by providing a structured roadmap for exporter readiness. Under this framework, Amazon and Texprocil will deliver comprehensive training on cross-border logistics, product compliance, and digital marketing. Dr. Siddhartha Rajagopal, Executive Director, Texprocil, emphasizes, e-commerce is emerging as a premier growth engine, allowing manufacturers to build global brands while diversifying their customer base. By leveraging Amazon Global Selling, Indian firms can now showcase premium home textiles - such as bed, bath, and kitchen linen - directly to international shoppers without the need for physical infrastructure abroad, effectively shortening supply chains and enhancing market responsiveness.

Strengthening India’s textile competitiveness

Established in 1954, TEXPROCIL is the apex government-designated body under the Ministry of Textiles responsible for promoting Indian cotton textile exports. Representing approximately 2,000 member companies, it provides market intelligence, policy advocacy, and trade facilitation for yarns, fabrics, and home textiles, playing a pivotal role in strengthening India’s global textile competitiveness.

 

Mumbai-based textile specialist D Badami Fashion Connection LLP utilized the platform of Bharat Tex 2026 to bridge the gap between between traditional textile heritage and the modern demand for rapid, trend-responsive sourcing.

The brand is integrating proprietary design logic with sustainable fiber blends, including Tencel and modal to shift its strategic focus toward high-frequency design cycles and enhanced supply chain agility. With a monthly output of approximately 1.5 million meters, the firm is leveraging its in-house design studio -which generates around 1,000 new concepts monthly - to cater to the increasingly complex requirements of both domestic and international apparel retailers.

 

Scaling operational efficiency for global brands

The company’s participation at the New Delhi event highlighted its commitment to ‘Never Out of Stock’ (NOS) logistics, a model designed to reduce lead times for high-volume apparel brands to 15 days. This operational efficiency is central to the firm’s ambition of simplifying the fabric procurement process for emerging fashion labels and established houses alike. "Bharat Tex provided an excellent platform to connect with industry professionals, allowing us to align our product roadmap with evolving global market preferences," noted Vaibhav Jain, Director at Dhingar Silk Mills and shareholder at D. Badami. By maintaining a diverse portfolio that spans formal, resort, and casual wear, the organization continues to expand its reach across key markets including the UK and South America, underscoring the growing capability of Indian manufacturers to meet stringent global sustainability and compliance benchmarks.

Focusing on OEKO-TEX certified fabrics

D. Badami Fashion Connection is a Mumbai-based, design-led manufacturer of woven men’s and kidswear shirting fabrics. A division of the Dhingar Group (established 1961), the brand supplies 2,500+ global clients. It focuses on sustainable, OEKO-TEX certified fabrics, scaling production through innovative, tech-driven sourcing and a rapid-dispatch NOS model.

 

In lieu of the government‘s broader vision to boost the nation’s exports to $100 billion, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is positioning the nation’s apparel sector to secure $60 billion in annual exports. Despite ongoing geopolitical tensions in the West Asia region and the resultant inflationary pressures on freight and logistics, the industry is recalibrating its focus toward high-value, non-traditional markets. By shifting production emphasis from commodity-grade staples to technically advanced sportswear and sustainable synthetic apparel, manufacturers are actively diversifying their portfolios to mitigate risks associated with over-reliance on a single export destination. This strategic transition is critical as global buyers increasingly demand shortened lead times and enhanced transparency, compelling local factories to invest in automated infrastructure and standardized energy-efficient manufacturing processes.

Optimizing supply chain agility and value retention

A core component of this roadmap involves deep-tier investment in circularity and localized fabric production to reduce dependence on imported raw materials. BGMEA leadership notes, sustained growth is predicated on navigating liquidity constraints while maintaining competitive unit economics. For example, several major hubs in Dhaka and Gazipur are deploying integrated solar-grid solutions to stabilize energy costs, thereby protecting operating margins against fluctuating international shipping surcharges. As the industry advances, the success of this $60 billion ambition remains tethered to the seamless implementation of digital product tracking and adherence to evolving European and American sustainability benchmarks, which are quickly becoming the mandatory baseline for securing long-term volume commitments from global retail conglomerates.

Reinforcing Bangladesh as the top global sourcing destination

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the apex trade body representing the country's apparel sector. It facilitates policy advocacy, trade promotion, and infrastructure development. With a vision of reaching $100 billion, it focuses on high-value exports, sustainable manufacturing, and maintaining Bangladesh’s status as a top global sourcing destination.

 

Rimini-based Teddy Group has officially surpassed the €800 million turnover mark, reporting consolidated revenues of €802.3 million for FY25. Achieved amidst a climate of tightening consumer expenditure and geopolitical instability, this performance underscores the group’s resilience in the affordable fashion sector. While many global retailers have faced contraction, Teddy’s self-financed, organic growth model - characterized by its distinct ‘franchising on consignment’ framework - has allowed the company to scale its footprint to approximately 900 stores across 80 countries. By absorbing the inventory risk that typically burdens retail partners, the group has fostered stable, long-term operational partnerships that remain insulated from the volatility affecting broader fashion trade cycles.

Operational roadmap and strategic focus for 2026

Building on this financial trajectory, the company is transitioning toward a ‘consolidation phase’ in 2026. The strategic mandate for the current year emphasizes the strengthening of brand identity across its portfolio, including Terranova, Calliope, Rinascimento, and QB24. Management is prioritizing investments in digital integration and workforce development, with plans to inaugurate 120 new points of sale and generate over 260 new roles.  The Group’s strength lies in its corporate culture, and it intends to preserve this through organic expansion rather than acquisitions, noted Alessandro Bracci, CEO, Teddy Group. By optimizing the synergy between its immersive physical retail experiences and robust e-commerce platforms, the group aims to enhance its competitive positioning in high-growth regions, particularly throughout Central Europe and the Middle East, ensuring consistent value creation despite the prevailing macroeconomic headwinds.

Focusing on trend-driven apparel

Teddy Group is an international fashion retail company founded in 1961 by Vittorio Tadei. Headquartered in Italy, it manages the brands Terranova, Calliope, Rinascimento, and QB24. The group focuses on accessible, trend-driven apparel, expanding through a self-financed network of physical and digital retail platforms across 80 global markets.

Beyond Blue Jeans How brand identity is reshaping a 103 bn market

 

The global denim industry is entering a new phase of competition, one in which branding psychology is becoming as valuable as manufacturing expertise. Valued at $103.16 billion in 2026, the global denim jeans market is projected to reach $164.22 billion by 2034, increasing at a compound annual growth rate (CAGR) of 5.98 per cent, according to Fortune Business Insights. Yet behind this impressive growth lies a transformation. The industry's defining battle is no longer centred on fabric quality, durability or fit. Instead, it is increasingly being fought over consumer identity.

For decades, denim brands built their reputations by answering a simple question: Will these jeans last? Today, premium players are succeeding by addressing a different question altogether: What do these jeans say about me? That shift is redefining pricing power, customer loyalty and profitability across the global apparel business.

Beyond product

Denim's commercial success has rested on tangible product attributes. Strong stitching, durable cotton fabric, reinforced rivets and reliable fits enabled heritage brands to dominate wardrobes across generations. Denim became the world's most frequently purchased apparel category, supported by mass production and global retail distribution.

However, manufacturing advances have steadily eroded product differentiation. With Asia-Pacific now accounting for more than half of global denim production, innovations such as premium washes, stretch fabrics and finishing technologies have become widely accessible. As factories across China, India, Bangladesh and Vietnam adopted similar production capabilities, superior craftsmanship ceased to be a decisive competitive advantage.

This has changed the basis of competition. Rather than competing on physical product improvements alone, successful brands increasingly compete by defining what their products represent culturally. The most valuable denim labels no longer merely sell jeans; they sell identity, aspiration and belonging.

Premium pays dividends

This repositioning has significantly altered the economics of the denim business. Industry estimates show the global premium denim segment reached $12.53 billion in 2025 and is expected to approach $19.78 billion by 2032, growing faster than the overall market. Unlike mass-market brands that remain vulnerable to cotton prices, labour costs and discounting pressures, premium labels enjoy stronger pricing flexibility because consumers perceive their purchases as emotional investments rather than functional necessities.

Once consumers associate a brand with their personal identity, purchasing decisions become less price-sensitive. Premium denim companies therefore spend proportionately more on storytelling, celebrity partnerships, fashion collaborations and community building than on communicating technical product specifications. This emotional connection also reduces dependence on promotional pricing. Customers attached to a brand's image are less likely to wait for seasonal discounts, allowing companies to protect margins while maintaining premium positioning.

Levi's reinvention

Even heritage players are adapting to this new commercial reality. Levi Strauss & Co., long regarded as the inventor of modern blue jeans, has been steadily repositioning itself from a traditional denim manufacturer into a broader lifestyle apparel company. Under CEO Michelle Gass, the company completed its transition to a direct-to-consumer business model in early 2026 while expanding categories including women's apparel and tops.

The strategy is producing measurable results. Over the past twelve months, Levi Strauss reported revenue growth of nearly 7 per cent, with its latest quarterly revenue rising more than 14 per cent, supported by double-digit expansion across Asia and continued investment in international markets. The company's evolution shows how even the strongest heritage brands recognise that future growth depends on controlling customer relationships directly rather than relying primarily on wholesale retail networks.

Digital drives demand

Direct-to-consumer retail has become one of the industry's most significant growth engines. Digital sales channels are forecast to grow at an annual rate exceeding 14 per cent through 2035, enabling brands to communicate consistent narratives while collecting valuable customer data. Unlike department stores or multi-brand retailers, owned digital platforms allow companies to control every aspect of the consumer experience from product launches and personalised recommendations to sustainability messaging and brand storytelling.

Consumers have responded enthusiastically, particularly within the premium price bracket between $200 and $400. Buyers increasingly justify higher prices through durability, cost-per-wear calculations and environmental considerations rather than simple affordability.

Meanwhile, fashion cycles continue to accelerate. Demand for vintage-inspired silhouettes, gender-neutral styling and customised products has compressed product development timelines from roughly 18 months to as little as six months. Brands capable of rapidly translating social media trends into retail collections are capturing disproportionate market attention. Luxury players are also capitalising on this momentum. Italian fashion group OTB has strengthened the global positioning of Diesel by transforming the brand from a traditional denim label into a contemporary fashion statement through runway presentations, creative collaborations and high-concept marketing.

Balancing sustainability

Despite strong consumer demand, denim manufacturers face growing operational challenges. Environmental regulations targeting water-intensive dyeing processes are increasing compliance costs, while tariffs of roughly 20 per cent to 30 per cent across several Western markets continue to pressure global supply chains. Rising logistics expenses and volatile raw material prices further complicate inventory planning. To preserve profits, manufacturers are using predictive analytics to optimise production while reducing stock-keeping units by as much as 25 per cent. Smaller, more focused product assortments enable companies to improve inventory productivity and minimise markdowns.

Sustainability has consequently shifted from a corporate responsibility initiative to a core business requirement. More than half of global denim manufacturers now offer collections incorporating recycled cotton, organic fibres or low-water production technologies. This aligns with evolving consumer preferences, with nearly half of apparel buyers actively considering environmental certifications before purchasing denim. For premium brands, sustainability also reinforces their broader identity narratives, allowing ethical manufacturing to become another element of emotional differentiation.

The identity advantage

The commercial divide between heritage and identity-led brands is becoming increasingly pronounced. Traditional denim companies continue to derive value from authenticity, craftsmanship and functional reliability. Their pricing remains closely tied to production economics, making profitability sensitive to fluctuations in cotton costs and manufacturing expenses.

Identity-driven brands operate differently. By positioning denim as an expression of individuality, rebellion or cultural relevance, they create value largely independent of production inputs. Comparable fabrics sourced from similar manufacturing hubs can command prices several times higher simply because consumers are buying into a lifestyle rather than a garment.

That distinction explains why premium denim continues to outperform despite economic uncertainty. While consumers can easily substitute one durable pair of jeans for another, replacing the emotional value attached to a brand is considerably more difficult.

As the global denim market continues its expansion towards $164 billion, competitive advantage will increasingly belong to companies capable of balancing manufacturing excellence with compelling cultural narratives. In an industry once defined by durability and craftsmanship, the most valuable asset is no longer the fabric itself. It is the identity consumers believe they are wearing.

Beyond Tariffs How a unified US apparel industry wants to rebuild regional manufacturing

 

In a rare show of consensus, some of the US' most influential apparel, footwear and textile organisations have come together to advocate a redesign of the country's trade incentives. Traditionally divided over tariff policies, the National Council of Textile Organizations (NCTO), American Apparel & Footwear Association (AAFA), United States Fashion Industry Association (USFIA) and the U.S. Industrial and Narrow Fabrics Institute (USINFI) have jointly submitted a proposal to the Office of the United States Trade Representative (USTR) that seeks to reshape sourcing decisions through market-based incentives rather than additional import restrictions.

The proposal, submitted as a part of the ongoing Section 301 proceedings, introduces a tariff offset mechanism designed to encourage sourcing from USMCA and CAFTA-DR countries while rewarding the use of American-made yarns and fabrics. More importantly, it signals a shift in how the industry views supply-chain resilience moving beyond punitive tariffs towards incentives that make regional manufacturing commercially viable.

Why are competitors speaking in one voice?

The alliance reflects the economic pressures facing the American textile sector. Over the past two-and-a-half years, over 40 domestic textile mills have shut permanently, resulting in widespread job losses and declining industrial output. While policymakers have promoted nearshoring and regional production, Asia continues to dominate apparel sourcing.

Today, Asian manufacturing hubs account for almost 79 per cent of all apparel imported into the US, while the Western Hemisphere's share has fallen to just 12 per cent. This imbalance has also weakened demand for American textile exports, nearly 70 per cent of which traditionally flow to manufacturing partners across the Western Hemisphere. Against this backdrop, organisations that have always disagreed over tariff policy now argue that rebuilding regional supply chains requires positive commercial incentives instead of trade barriers alone.

The coalition believes the proposal can simultaneously strengthen domestic manufacturing, reduce dependence on Asia, and create commercially attractive alternatives for apparel brands seeking diversified sourcing strategies.

Rewarding regional manufacturing

What led to this proposal is a tariff credit programme linked to verified, forced-labour-free production. Instead of merely imposing higher duties on imports from countries facing Section 301 actions, companies would earn credits by purchasing qualifying garments manufactured in USMCA or CAFTA-DR partner countries. The proposed framework operates in three tiers. Brands importing qualifying apparel from these regional partners would receive a baseline credit equivalent to 20 per cent of the garments' declared customs value. The incentive increases if those garments incorporate American-made textile inputs.

If US-manufactured yarn is used, companies would receive an additional credit worth 30 per cent of the yarn's export value. Garments using American-made fabric would qualify for an even larger incentive equivalent to 40 per cent of the fabric's export value. These accumulated credits could then offset Section 301 duties on imports from countries identified by USTR under its enforcement framework. The proposed structure is intended to make regional sourcing financially competitive without compelling companies to completely abandon Asian production networks.

Table: Proposed tariff offset credit structure

Qualifying sourcing activity

Proposed icentive

Importing qualified apparel from USMCA or CAFTA-DR

Credit equal to 20% of declared customs value

Use of US-manufactured yarn

Additional credit worth 30% of yarn export value

Use of US-manufactured fabric

Additional credit worth 40% of fabric export value

Economic impact could extend beyond manufacturing

Industry projections suggest the policy could substantially alter regional trade flows. The coalition estimates that annual US textile exports to the Western Hemisphere could double from $14.5 billion to $29 billion if the programme succeeds in shifting sourcing decisions. That increase would directly benefit domestic spinning, weaving and textile manufacturing while creating stronger demand for American cotton, which supplies nearly all fibre processed by US mills.

Supporters also estimate the framework could generate more than 56,000 direct and indirect jobs while attracting fresh investment into textile innovation, including circular manufacturing and advanced production technologies. Equally significant is the anticipated shift in sourcing geography. The Western Hemisphere's share of US apparel imports could potentially rise from 12 per cent to 25 per cent, reducing Asia's dominance from 79 per cent to around 66 per cent over time.

Table:  Projected industry realignment

Market indicator

Current baseline

Projected impact

US textile industry output

$61 bn

Under evaluation

US apparel retail market

$440 bn

Under evaluation

Western Hemisphere share of US apparel imports

12%

25%

Asian share of US apparel imports

79%

66%

Annual textile exports to regional partners

$14.5 bn

$29 bn

Employment impact

Baseline

More than 56,000 new jobs

Making compliance commercially attractive

A defining feature of the proposal is its effort to align trade policy with labour compliance objectives. Experts argue that existing tariff-rate quotas and conventional trade remedies lack the certainty necessary for companies to commit long-term investments in regional manufacturing. In contrast, a predictable credit mechanism tied to verified forced-labour-free production could transform compliance into a competitive business advantage rather than merely a regulatory obligation.

The proposal also aligns with broader geopolitical efforts to diversify supply chains, strengthen trusted trade partnerships and reduce exposure to concentrated manufacturing hubs. For brands facing growing pressure to demonstrate ethical sourcing, the framework offers an opportunity to improve compliance while protecting operating margins.

Practical illustration of the incentive

The coalition has shown the proposal through a sourcing scenario involving a mid-sized American casualwear retailer. Currently dependent on East Asian suppliers for 80 per cent of its denim and activewear, the company pays substantial Section 301 tariffs. Under the proposed framework, shifting 30 per cent of production to factories in El Salvador and Guatemala using American yarns and North Carolina-made denim fabrics would generate tariff credits that could fully offset duties on the retailer's remaining specialised Asian imports.

The example shows the proposal's broader objective: encouraging companies to rebalance not necessarily replace their sourcing strategies while maintaining commercial competitiveness. Rather than forcing abrupt decoupling from Asia, the framework seeks to gradually strengthen Western Hemisphere production through financial incentives that reward regional value addition.

As USTR evaluates potential Section 301 enforcement measures, the industry's unified proposal represents more than another tariff recommendation. It reflects an evolving consensus that future competitiveness will depend not only on restricting imports but also on creating commercially sustainable supply chains that integrate North American and regional manufacturing with stronger domestic textile production.

India UK CETA free UK access puts Indias textile sector on growth track

 

India's textile and apparel industry is ready for one of its biggest export opportunities in decades as the India-UK Comprehensive Economic and Trade Agreement (CETA) comes into force from today, July 15, 2026. By eliminating tariffs on 99 per cent of Indian tariff lines entering the UK, the agreement removes a long-standing cost disadvantage for Indian exporters and also improves their competitiveness in one of the world's largest fashion markets.

For years, Indian apparel and home textile exports attracted duties ranging from 8 to 12 per cent, while competitors such as Bangladesh benefited from preferential access. The new agreement effectively levels the playing field, allowing Indian suppliers to compete on quality, scale, innovation and supply-chain capabilities rather than sacrificing margins to offset tariff costs.

The impact extends well beyond export numbers. As per industry estimates India's textile and apparel exports to the UK is currently valued at $1.4 billion, and this could double to $2.8 billion by 2030. The agreement also strengthens India's broader ambition of achieving $100 billion in textile exports globally by the end of the decade.

India's textile and apparel sector, valued at nearly $179 billion, contributes around 2 per cent to GDP, 11 per cent to manufacturing gross value added and nearly 9 per cent of the country's total exports, making the agreement strategically significant for both industry and the economy.

A competitive reset

The UK's apparel market has been steadily diversifying sourcing away from China amid geopolitical uncertainty and supply-chain risk. The India-UK pact arrives at a time when British retailers are actively looking to broaden their supplier base. Leading retailers such as Primark, ASOS and Marks & Spencer already maintain sourcing relationships with Indian manufacturers, and the tariff elimination is expected to encourage larger procurement volumes across apparel, home textiles and fashion accessories.

As per Confederation of Indian Textile Industry (CITI), the agreement gives India the advantage needed to increase its market share. Rating agency ICRA expects textile exports to witness annual growth of 11-13 per cent as Indian suppliers capture a larger share of the UK's £14.28 billion apparel and home textile import market. Even before the agreement took effect, India's apparel shipments to the UK had grown by 13.4 per cent, while China's share of UK apparel imports declined by over 6 per cent, indicating that sourcing diversification was already underway.

Table: Top textile & apparel import sources & future outlook

Country

Estimated 2024 import value (apparel & home textiles)

Per cent share

Strengths

Post-CETA outlook

China

£3.65 bn

25

Large-scale manufacturing and competitive pricing

Market share gradually declining as buyers diversify

Bangladesh

£3.21 bn

22

Large garment manufacturing base and cost competitiveness

Remains a major supplier but faces stronger competition

India

£1.25 bn

8.5

Integrated value chain, raw material diversity, ethical production

Expected to raise share to nearly 12% by 2030

Turkey

£1.17 bn

8

Design capability and proximity to Europe

Premium positioning with shorter lead times

Pakistan

£1.00 bn

6.8

Competitive basics manufacturing

Faces pricing and margin volatility

Focus beyond cotton

The agreement also aligns with an important change within India's textile manufacturing. While India has traditionally been known for cotton-based production, global fashion demand has shifted towards performance wear, sportswear, technical textiles and blended fabrics. Reflecting this change, man-made fibres (MMF) and blended yarns now account for 52.2 per cent of domestic textile consumption, overtaking cotton for the first time.

Government initiatives such as the Production Linked Incentive (PLI) scheme have given a boost to investments in synthetic fibre manufacturing, technical textiles and value-added fabric processing. The UK agreement now offers these newly created capacities with duty-free access to premium international buyers. Besides garments, exporters expect strong demand for home textiles, upholstery fabrics, bed linen, towels and industrial textiles as lower landed costs improve India's competitiveness in Britain's premium home furnishing market.

Need to build scale

While tariffs have disappeared, execution will determine how much of the opportunity India can capture. One of India's longstanding challenges has been its fragmented manufacturing base. Unlike competing countries that operate mega integrated factories, many Indian apparel manufacturers continue to operate through smaller production units that often struggle with scale, consistency and lead times.

The government's PM MITRA programme aims to address this gap through seven integrated textile parks that combine spinning, weaving, dyeing, processing and garment manufacturing within single industrial ecosystems. Projects such as the Virudhunagar PM MITRA park in Tamil Nadu are expected to reduce logistics costs, improve production efficiency and shorten delivery timelines—factors increasingly valued by global retailers following pandemic-era supply disruptions. Experts believe stronger integration will also improve capacity utilisation across MSMEs while encouraging automation, digital manufacturing and higher productivity.

Sustainability as a market requirement

Tariff-free access alone is no longer sufficient to win export orders. British retailers require suppliers to demonstrate environmental compliance, ethical sourcing and complete supply-chain transparency. Sustainability has become a procurement prerequisite rather than a value addition. Major export clusters such as Tiruppur have invested extensively in zero-liquid-discharge treatment systems, renewable energy, recycled textiles and water-efficient processing.

Meanwhile, the Cotton Textiles Export Promotion Council (TEXPROCIL) has introduced blockchain-based cotton traceability, enabling buyers to digitally verify fibre origin from farm to finished garment. Such traceability is expected to become increasingly important as UK and European retailers strengthen due diligence requirements and environmental reporting.

Companies prepare for growth

Large exporters are already positioning themselves for increased UK demand.

Raymond Lifestyle for example has diversified its export portfolio by reducing dependence on the US market while expanding its presence in the UK and Europe. The company is scaling production at its Andhra Pradesh manufacturing facility from three to 11 production lines and expects export volumes to grow 20-25 per cent during the current financial year as CETA-driven orders begin flowing.

Similarly, India's largest apparel exporter, Shahi Exports, is well positioned. With over 50 vertically integrated factories, the company supplies several leading global fashion brands and has invested significantly in renewable energy and sustainable manufacturing. Its integrated model is expected to help it capitalise on larger sourcing commitments from UK retailers seeking reliable, compliant and scalable partners.

As global sourcing strategies continue to diversify beyond China, the India-UK trade agreement offers Indian manufacturers a rare combination of tariff competitiveness, policy support and increase production capacity. The next phase will depend on how effectively the industry scales operations, strengthens compliance and delivers the speed and consistency demanded by international fashion buyers. If executed well, CETA could become the catalyst that reshapes India's position in global textile trade over the coming decade.

AI tailoring gains momentum as custom suits transforms premium apparel retail

 

Technology is reshaping one of fashion's oldest categories menswear. AI, digital body scanning and automated manufacturing are replacing conventional tailoring processes, enabling brands to deliver customized garments at scale while improving profit. The global made-to-measure suit market is valued at $3.6 billion in 2026, up from $3.34 billion in 2025, and is forecast to reach $4.95 billion by 2030, at 8 per growth annually.

Unlike traditional ready-to-wear garments that depend on forecasting demand and maintaining large inventories, made-to-measure retail follows a demand-led production model. This reduces excess inventory, markdowns and returns while allowing brands to cater to growing consumer demand for personalized fashion.

Personalisation moves from luxury to business strategy

Personalization has evolved from a premium service into a core retail strategy. AI-powered body scanning, automated pattern engineering and virtual fitting tools are helping apparel brands eliminate one of the industry's biggest cost centres, poor fit. Rather than producing garments across multiple standard sizes, retailers can now generate individual patterns from customer measurements and manufacture only after an order is confirmed. The approach minimizes inventory risk while delivering a more accurate fit.

Consumer demand is reinforcing this shift. Research by Vogue Business and Google LLC shows 69 per cent of consumers value AI-driven personalization, 62 per cent are influenced by personalized recommendations, while 37 per cent respond positively to customized offers. Brands adopting personalized retail strategies are also projected to achieve 17 per cent higher revenues, underlining the commercial value of technology-enabled customization.

Digital tailoring improves retail economics

The financial advantages of made-to-measure retail extend beyond customer satisfaction. Traditional premium apparel retailers often struggle with costly returns due to inconsistent sizing. Every returned garment increases logistics costs while forcing retailers to discount merchandise, eroding margins.

Digital tailoring addresses these inefficiencies through automated measurements, virtual garment visualization and algorithm-driven pattern adjustments. Instead of stocking multiple size combinations, retailers can operate with minimal inventory and manufacture garments only after purchase.

A practical example is Apex Menswear Group, which changed several stores into hybrid digital tailoring centres. Customers select fabrics, lapel styles and linings through digital interfaces before undergoing body scans. Measurement data is transmitted directly to manufacturing facilities, where automated systems generate customized patterns. The results reflect the economic impact of the model. Within one year, fit-related returns fell from 24 per cent to below 2 per cent, while the company's average order value increased 31 per cent, highlighting how personalization can simultaneously improve customer experience and profitability.

Growth outlook reflects market shift

The industry's outlook suggests that customized tailoring is becoming an increasingly important segment of premium apparel rather than a niche luxury offering.

Year

Global market size ($)

Compound Annual Growth Rate (CAGR)

Performance Drivers

2025

$3.34 bn

Baseline Year

Resurgence of premium formal wear culture; rising urban workforce.

2026

$3.60 bn

8.00%

Deployment of mobile AI body scanning; hybrid digital retail adoption.

2030 (Proj.)

$4.95 bn

8.30%

Smart automated manufacturing; widespread ethically sourced fabric integration.

The projected increase reflects broader changes in workplace dressing habits. As hybrid work models become established, consumers prefer versatile, semi-formal clothing that combines comfort with professional styling. Made-to-measure apparel occupies a middle ground between expensive bespoke tailoring and mass-produced ready-to-wear garments, making it attractive to a wider customer base.

Asia-Pacific emerges as the next growth engine

While Europe continues to account for the largest share of the global made-to-measure market due to its long-established tailoring heritage, future expansion is expected to be driven by Asia-Pacific. Rapid urbanisation, rising disposable incomes and the growth of the middle-class consumer base are creating strong demand for premium personalized apparel across the region. Investments in digitally enabled manufacturing facilities are also improving production efficiency by allowing faster pattern modifications and shorter delivery timelines.

For markets such as India, the trend gives numerous opportunities. India's established textile manufacturing base, growing apparel exports, rising premium fashion consumption positions it to benefit from global demand for digitally customised garments. Domestic fashion retailers are also gradually adopting technology-led retail formats that combine online design tools with in-store measurement services.

Sustainability strengthens business

Environmental considerations are becoming another important driver of the made-to-measure business model. Unlike mass production which often generates excess inventory and textile waste, customized manufacturing produces garments only after purchase. This reduces unsold stock while improving material utilisation. At the same time, consumers are demanding ethically sourced natural fibres and greater supply chain transparency. As a result, many brands are integrating traceable fabrics with digital production workflows, combining sustainability objectives with operational efficiency.

The merging of AI-powered customization, automated production and responsible sourcing is creating a business model that aligns with both consumer expectations and retailer profit.

As premium apparel companies continue investing in digital infrastructure, made-to-measure tailoring is moving beyond its traditional luxury positioning to become a scalable retail model capable of delivering stronger margins, lower inventory risk and a more personalized shopping experience. With the market expected to touch $5 billion by 2030, technology-enabled tailoring is set to become an influential segment of the global fashion industry.

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