Dear Friends,

India’s manufacturing sector recorded a growth of 4.5%, reaching ₹29.54 trillion in FY25, as per the latest figures released by the Ministry of Statistics and Programme Implementation (MoSPI). A noteworthy development during the year was a 6.3% rise in exports (in rupee terms) to ₹40.68 trillion, accompanied by a 3.7% reduction in imports to ₹42.29 trillion. This narrowing of the trade deficit has offered some relief despite persistent challenges in net exports.

As India charts a path forward rooted in technology, sustainability, and scale, securing favourable global market access remains central to its economic ambitions.

India–UK Free Trade Agreement

On May 6, 2025, India and the United Kingdom concluded a landmark Free Trade Agreement (FTA). The Government of India has described it as a “historic and ambitious deal to boost jobs, exports, and national growth.” The FTA provides for tariff elimination on 99% of Indian tariff lines, covering nearly the entire trade value, while also reducing tariffs on 90% of UK tariff lines. The UK anticipates an annual economic gain of £4.8 billion (US$6.4 billion) from this agreement by 2040.

While the detailed tariff schedules, rules of origin, import quotas, services coverage, and commitment frameworks are yet to be released, I encourage all our members to begin strategizing on how best to capitalize on the opportunities this agreement presents.

Government Engagements

On May 8, Hon’ble Commerce & Industry Minister Shri Piyush Goyal convened a meeting with export promotion councils (EPCs) in New Delhi. Discussions focused on leveraging FTAs effectively, addressing non-tariff barriers, and enhancing exports of services and value-added goods. The Minister also emphasized the development of a centralized exporter portal and progress in trade negotiations with the EU and US.

A day earlier, on May 7, the Council had the opportunity to meet the newly appointed Director General of Foreign Trade, Shri Ajay Bhadoo, in New Delhi. Along with the Council’s Executive Director we held a meeting to apprise the DGFT on the various issues concerning the cotton textile sector.

We also had the privilege of meeting Shri Rajesh Agarwal, Special Secretary and Chief Negotiator for the USA FTA and Secretary-Designate, Department of Commerce, where we discussed the ongoing India–USA BTIA (Bilateral Trade and Investment Agreement) negotiations.

India–Bangladesh Trade Developments

Trade tensions between India and Bangladesh have escalated, with India imposing restrictions on the import of readymade garments and certain commodities through land ports—mirroring similar restrictions previously imposed by Bangladesh. This move aims to curb the indirect entry of Chinese fabrics into India via Bangladesh.

Given that Bangladeshi garments are 12–15% cheaper than Indian counterparts, these new restrictions—which channel trade through costlier sea routes—are expected to drive up logistics costs by around 10% and extend delivery timelines. This has sparked optimism among Indian manufacturers regarding a potential revival in domestic orders.

In response to Bangladesh restricting cotton yarn imports via land routes, the Council is actively exploring viable alternatives to sustain market access and support exporters.

Exploring Inland Waterways for Trade

TEXPROCIL is proactively examining cost-effective logistics solutions to ensure continued trade flow. One promising alternative is the use of Inland Waterways. In this context, a meeting was held with the Inland Waterways Authority of India (IWAI) in Kolkata on May 13 to evaluate its feasibility.

Dr. Siddhartha Rajagopal, Executive Director, and Mr. Murali Balkrishna, Joint Director of TEXPROCIL, along with Mr. Alok Mishra from Winsome Textile Industries Ltd., met with Mr. R.K. Singh, Director of IWAI, to deliberate on logistical and strategic benefits of this route.

This initiative marks a key step in the Council’s efforts to develop innovative and sustainable trade connectivity solutions for the region.

EKTA – Shimla, Himachal Pradesh

The Ministry of Textiles, in collaboration with the Government of Himachal Pradesh, hosted EKTA – Exhibition cum Knowledge Sharing for Textile Advantage from May 19–26, 2025, in Shimla.

The event was inaugurated by Shri Prabodh Saxena, Chief Secretary of Himachal Pradesh, and was graced by senior dignitaries including Shri Rohit Kansal, Additional Secretary, Smt. Shubra, Trade Advisor, Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL, and Shri Moloy Chandan Chakraborty, Jute Commissioner.

A series of Knowledge Sessions covered diverse topics such as exports, jute geo-textiles, technical textiles, silk, sustainable fashion, and the potential for developing a textile manufacturing ecosystem in Himachal Pradesh.

TEXPROCIL–GDLSK Webinar

On May 16, 2025, TEXPROCIL organized an informative webinar for Indian textile exporters in association with the U.S.-based firm Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP (GDLSK). The session aimed at simplifying the U.S. tariff structure and providing actionable strategies for reducing duty exposure.

Mr. Manoj Patodia, Past Chairman of TEXPROCIL, welcomed the participants, and expert insights were provided by Mr. Dharmendra Choudhary and Mr. David Murphy, Partners at GDLSK LLP. The webinar was moderated by Dr. Siddhartha Rajagopal.

The session proved to be a valuable learning platform, and the Council remains committed to organizing similar consultative programs in the future to address the evolving needs of exporters.

Way Forward

Friends, India continues to strengthen its position as a key link in global value chains, driven by its cost advantage and expanding capabilities. Several FTAs are currently in advanced stages of negotiation—including with Chile, New Zealand, and the EU (early harvest deal). These agreements have the potential to unlock new opportunities for the textile sector.

As these developments unfold, our sector must adapt and align more closely with global aesthetics, sustainability goals, and evolving buyer expectations.

:: TEXPROCIL ::