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Proposed e commerce export hubs expected to boost Indias textiles and apparel sector

India is poised to become a global e-commerce powerhouse, with the textile, apparel, and fashion sector at the forefront. The government's recent announcement of e-commerce export hubs is a significant step towards realizing this potential.

The e-commerce export landscape

India's current e-commerce exports stand at a modest $5 billion compared to China's dominant $300 billion. However, the potential is immense. A report by GTRI estimates India's e-commerce exports could grow to $350 billion by 2030.

The Indian government has identified e-commerce as a key driver of economic growth and export diversification. The proposed e-commerce export hubs, to be established in a public-private partnership model, will provide a comprehensive ecosystem for exporters, streamlining processes and reducing costs. The global cross-border e-commerce market is booming, projected to reach $2 trillion by 2030. India's vast population, skilled workforce, and rich cultural heritage position it as a prime exporter of textiles, apparel, and fashion products.

The textile, apparel, and fashion sector is particularly promising. With its rich heritage, skilled workforce, and cost-competitive production, India has a strong foundation to build upon. Moreover, the government's focus on initiatives like 'One District One Product' (ODOP) can further enhance the export potential of unique regional products.

The e-commerce export hub initiative

As outlined by Finance Minister, e-commerce export hubs will operate under a PPP model, streamlining trade and export-related services. The goal is to empower MSMEs and artisans to access international markets, as stated by the minister. Commerce Secretary Sunil Barthwal has indicated that a comprehensive regulatory framework for e-commerce exports will be in place by September 2023. This regulatory clarity is crucial for boosting investor confidence and facilitating trade.

These hubs will offer a comprehensive range of services, including warehousing, customs clearance, and export facilitation. The development of e-commerce export hubs is expected to generate employment opportunities in various sectors.

The textile, apparel, and fashion sector

The textile, apparel, and fashion sector is a cornerstone of India's economy, with a strong domestic market and export-oriented manufacturing base. This sector is well-positioned to capitalize on the e-commerce boom.

Strong value proposition: India offers a unique blend of traditional craftsmanship and modern manufacturing capabilities, enabling the production of high-quality, affordable products.

Diverse product range: The sector covers a wide spectrum of products, from ethnic wear to contemporary fashion, catering to diverse global tastes.

Export opportunities: With increasing demand for sustainable and ethically produced fashion, India's emphasis on organic textiles and fair labor practices can be a significant competitive advantage.

While the prospects are bright, challenges such as banking issues and operational costs hinder growth, as highlighted by a GTRI report. Developing secure and efficient payment systems is vital for cross-border transactions. Addressing these issues is essential for realizing the full potential of e-commerce exports. Improving logistics, warehousing, and last-mile delivery infrastructure is crucial for efficient e-commerce operations. Enhancing digital literacy among MSMEs and artisans is essential for effective online market participation. Meanwhile a clear and supportive regulatory environment is vital for boosting investor confidence and facilitating cross-border trade.

On the other hand, e-commerce offers unprecedented opportunities for small businesses and artisans to reach global consumers. By leveraging e-commerce platforms, these players can bypass traditional intermediaries and improve their profit margins.

India's e-commerce export sector is at an inflection point. With the right policies, infrastructure, and support, the country can become a global leader in this domain. The textile, apparel, and fashion industry, with its strong foundation and immense potential, is well-positioned to drive this growth.

  

Further strengthening Bangladesh’s position as a global leader in sustainable manufacturing, two more factories in the country have been accorded with the LEED certification by the United States Green Building Council (USGBC). This achievement brings the total number of LEED-certified green factories in the country to 226, as per the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Among these latest additions, Ashulia, Dhaka-based Saadatia Sweaters with a score of 91 has been granted Platinum certification while Gazipur-based Executive Greentex received Gold certification with a score of 69. These certifications highlight both the factories' excellence in energy efficiency, water conservation, and waste management.

Bangladesh currently hosts 60 out of the top 100 highest-rated LEED-certified factories globally, showcasing the nation's dedication to green manufacturing and sustainability. Since 2001, the country has been recognised by the USGBC for its commitment to environmental stewardship, with factories receiving Platinum, Gold, or Silver ratings based on their performance in key areas.

Emphasisng the industry’s unwavering focus on sustainability, MohiuddinRubel, Director, BGMEA, notes, Bangladesh's success in green growth represents significant progress toward achieving net-zero emissions. This achievement can be attributed to the industry's effortsalong with the collaborative support from buyers, the government, and development organisations. With continued partnership and dedication, Bangladesh's ready-made garment (RMG) industry is poised to reach new heights of excellence, further establishing itself as a global leader in sustainable and ethical manufacturing, states Rubel. The association aims to build on this momentum and continue creating a more sustainable and environmentally responsible industry, he adds.

  

Driven by a strong demand from the US and the European markets, India's apparel exports grew by 11.85 per cent in July, as per data compiled by the Confederation of Indian Textile Industry (CITI).

Apparel exports from India to these two regions rose to $1,277.20 million from $1,141.95 million during the month as compared to the corresponding month previous year. However, textile exports dipped marginally to $1,660.36 million from $1,663.06 million the previous year.

Overall, India’s the textile and apparel exports to these two markets grew by4.73 per cent to $2,937.56 million during the month from $2,805.01 million in July 2023.

RakeshMehra, Chairman, CITI, notes, this year has shown promising progress for India's textile and apparel exports, particularly in key markets such as the US, the European Union, and the UK. The growth in these markets contributessignificantlyto the increase in Indian apparel exports.

Highlighting the potential benefits of recent Free Trade Agreements (FTAs) like the India-Australia Economic Cooperation and Trade Agreement (ECTA) and the India-UAE Comprehensive Economic Partnership Agreement (CEPA), Mehra says, these agreements will provide additional momentum to India's exports, helping the industry maintain its position as a key player in the global textile and apparel market.

From Apr-July’24, India's cumulative merchandise exports increased by 4.15 per cent to $144.12 billion from $138.39 billion recorded in the same period last year.

Despite global challenges, including geopolitical tensions in West Asia, India's exports remained resilient, underscoring the country's strong performance in the global market, emphasisesSunil Barthwal, Commerce Secretary.

  

Zara Women has launched a new collection that offers garments made from 100 per centCircLyocell, a sustainable fabric made out of fibers derived from 50 per cent recycled textile waste.

Designed to highlight clean, minimalist silhouettes, the collection demonstrates the ability of Circ materials to create elevated and timeless designs. It is currently available in the US and other selected markets.

The collection builds on the company’s goal to create a model for the widespread adoption of sustainable materials, says Peter Majernowski, CEO, Circ. This partnership also reinforces the long-term potential of Circ and Inditex to work together to improve product circularity for the fashion industry, he adds.

Circ’s recycling technology offers a groundbreaking solution to the previously challenging task of breaking down polyester and cotton blends (polycotton) to create new garments. It is the only in-market platform that can successfully separate polycotton blended textile waste and recover both cellulosic and synthetic fibers.

The primary challenge now is to scale up this technology to accelerate circularity across the entire fashion industry, which will require broad collaboration and investment, emphasisesMajernowski. Partnerships like the ongoing collaboration between Zara and Circ, which began with an investment from Zara’s parent company, Inditex, in 2023, represent a positive step towards this goal, he adds.

  

Deckershas sold its footwear brand Sanuk to athleticwear company Lolë Brands, as per a press release shared by the companywith sister publication Fashion Dive.

This acquisition follows Lolë Brands’ purchase of the athleisure brand Époque Évolution last year. Both, Katie Pruitt, Brand Director, Sanuk and Todd Steele, CEO, Lole Brands describe Sanuk as a ‘natural fit’ for Lole Brands which focuses on expanding its business with a portfolio of synergistic, environmentally conscious brands.

Through this partnership Sanuk aims to expand its footprint and customer base in the US. The brand also aims to explore new product categories, they add.

Katie Pruitt, Brand Director –Sanuk, will continue in her new role as the Vice President and General Manager at Lole Brands. She will focus on brand strategy, prioritising direct-to-consumer (DTC) and wholesale customers to drive innovation and growth

In the first quarter of Deckers’ 2025 fiscal year, the net sales of Sanukdeclined by 28.4 per centY-o-Y to $6.9 million.

  

Knitwear exports from Tiruppur increased byRs 400 crore in the quarter ending July, as per A Sakthivel, Head-South, Apparel Export Promotion Council.

India's overall apparel exports grew by 13.8 per centduring the quarter, with Tiruppur's exports witnessing significant growth, particularly to markets like the US, Australia, Korea, Japan, and Europe.

As Bangladesh continues to dominate the international apparel export market, India, including Tiruppur, may not see substantial benefits from the current political situation in the country, Sakthivel points out.

Due to Bangladesh being grantedan 11 per cent duty-free status under the Free Trade Agreement (FTA), export order rates vary significantly between Bangladesh and Tiruppur. Tiruppur receives only urgent orders due to its higher pricing, he explains.

To address this disparity, Sakthivel has urged for the establishment of new FTAs, including a forthcoming agreement between India and the UK.

From Apr-July’24, India's apparel exports increased by 7.6 per cent to Rs 42,800 crore. Compared to July 2023, exports increased by Rs 1,400 cror to reachRs 10,677 crore.

KM Subramanian, President, Tiruppur Exporters' Association, states, having grown toRs 33,500 crore in 2023, Tiruppur's exports are projected to rise by 10 per cent this year to Rs 40,000 crore.

  

South Korea has announced a comprehensive strategy to address key industry trends, including accelerating the growth of the industrial textile market, increasing demand for eco-friendly practices, and integrating digital technologies across product planning, production, and logistics.

Elaborating on the strategy, DukgeunAhn, Trade, Industry, and Energy Minister, says, the strategy aims to increase South Korea’s share in the global industrial and eco-friendly textiles market from the current 2-3 per cent to 10 per cent by 2030. Additionally, it seeks to elevate the level of digital transformation in the industry from the current 35 per cent to 60 per cent.

Central to the strategy is the development of world-class technologies in high-performance materials such as aramids, carbon fibers, and electronic textiles by 2030. A KRW 2.9 trillion fund will be established to support companies that integrate industrial textiles into their products. The plan also includes the creation of an Industrial Textile Alliance and a Tech Textile Product Certification Evaluation Support Center.

The strategy emphasiseson eco-friendly practices, with ₩31 billion being allocated for initiatives like fiber-to-fiber recycling, plant-based vegan leather, and biodegradable fibers. The government also plans to provide waste heat recovery facilities to over 200 small and medium-sized enterprises (SMEs) and introduce carbon emissions standards and eco-design guidelines.

To foster AI and digital transformation, the Ministry of Trade, Industry and Energy (MOTIE) plans to develop an AI system that can reduce product design times by over 80 per cent and establish a Connected Micro Factory for high-speed production. Automation facilities will be provided to over 250 companies by 2028, and the expansion of Meta Fashion Playgrounds will further support digital innovation.

The strategy also includes training 1,000 professionals in eco-friendly and digital technologies by 2028 and pursuing global sustainability certifications, ensuring that South Korea remains competitive in the rapidly evolving textile and fashion industry.

  

Currently operational under the Ministry of Development of North Eastern Region (DoNER), the North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC), has been awarded with the prestigious Oeko-Tex certification for its Eri Silk. Directly awarded from Germany, this certification marks a significant milestone for the region’s traditional craftsmanship and its growing global influence.

Renowned as the world’s only vegan silk, Eri Silk is known for its ethical production process. Unlike other silks, the silk moth in Eri Silk is allowed to naturally emerge from its cocoon, leaving the silk threads intact. This compassionate and sustainable method resonates with the increasing global demand for eco-friendly and ethically produced textiles.

The Oeko-Tex certification is globally recognised as a rigorous standard as it ensures textiles remain free from harmful substances, and are produced under environmentally friendly conditions. Strongly endorsingEri Silk’s sustainability credentials, the certification strengthensEri Silk’s status as a Geographical Indication (GI) product of Assam, enhancing its authenticity and regional importance.

The certification also helpsEri Silk establish itself as a leading eco-friendly fabric. The recognition also highlights NEHHDC’s commitment to promoting Assam’s rich cultural heritage while embracing sustainable and ethical practices within the textile industry.

  

The Global Sourcing Expo will return to the Melbourne Convention and Exhibition Centre from November 19-21, 2024, featuring over 900 exhibitors from 20 countries, including India, Vietnam, and Brazil. The Expo aims to broaden sourcing opportunities for designers, retailers, and importers, providing a unique platform to connect with international suppliers.

A highlight of the event is the co-located Footwear & Accessories Show, which will showcase a diverse range of products, from leather boots to fashion-forward sneakers. This segment, featuring exhibitors from Turkiye, India, and China, promises to be a key attraction for those looking to expand their footwear offerings.

Key industry associations, such as the Handloom Export Promotion Council of India and the Taiwan Textile Federation, will be present, offering crucial connections for brands new to sourcing. According to Marie Kinsella, CEO of International Expo Group, these associations play a significant role in promoting their respective sectors and providing valuable guidance to their members.

In addition to the exhibition, the Expo will host a Global Sourcing Seminar series, featuring industry leaders like Paul Zahra, CEO of the Australian Retailers Association, and Patty Huntington from Harper’s Bazaar Australia. The seminars will cover topics such as AI, sustainability, and supply chain management, offering attendees actionable insights into the latest trends and regulations in the industry.

  

The American Association of Textile Chemists and Colorists (AATCC) is seeking a new Executive Director as the organization approaches its centennial. The Board of Directors has established an Executive Search Committee to identify suitable candidates.

Ideal candidates will possess strong leadership, strategic planning, and problem-solving skills, with a background in managing business operations. Prior experience in textile processing, association management, and marketing is highly desirable. Candidates should demonstrate proficiency in both written and oral communication, and be well-versed in accounting systems, Windows software, and social media.

Educational requirements include a BS in Textile Chemistry, Chemistry, Textile Science, or Engineering, with an MBA preferred. Familiarity with AATCC's operations, including prior membership or committee involvement, is highly advantageous.

The Executive Director will work from the AATCC Technical Center in Research Triangle Park, NC, USA, and report directly to the Board of Directors. Compensation will be based on experience.

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