Dear Friends,

As we enter into 2025, moderating global inflation, stable economic growth forecasts and improving business activity point to continued positive momentum in global trade for early 2025. However, this trend is expected to face substantial challenges. Potential shifts in United States trade policy with the advent of a new Presidency, and the increased use of industrial policies by many countries, are likely to influence global trade growth.

As per the UNCTAD Global Trade Update (December 2024), the threat of renewed and expanded trade wars, along with ongoing geopolitical tensions, continues to cast uncertainty on the outlook for global trade in 2025.

India’s T&A Exports report growth

India’s textiles and apparel exports, including handicrafts, grew 7 per cent during the April-October period to $21.35 billion. The outbound shipments from the sector stood at $20 billion in the same period of the previous financial year, FY 2023-24.

The Ready-Made Garments (RMG) category with exports of $8,733 million has the largest share (41 per cent) in the total exports ($21,358 million) during the period of April-October of FY 2024-25, followed by Cotton Textiles (33 per cent, $7,082 million), Man-Made Textiles (15 per cent, $3,105 million).

Growth of exports was observed in all principal commodities during April-October of FY 2024-25, as compared to corresponding period of FY 2023-24, except wool and handloom, which declined by 19 per cent and 6 per cent, respectively.

Meeting with Hon’ble Minister of Textiles

A meeting of the APEX Committee on Kasturi Cotton under the chairpersonship of Ms. Rachna Shah, former Secretary (Textiles) was convened on 16th December 2024 in New Delhi which was attended by me along with Shri Sunil Patwari, immediate past Chairman and the Executive Director of the Council.

A major decision was taken in the Apex Committee to extend the Kasturi Cotton Programme to include cotton of higher staple lengths beyond ‘29 mm and 30 mm’ to ‘35 mm and 36 mm’. This would ensure that Extra Long Staple (ELS) varieties of cotton can also be branded as Kasturi Cotton.

Friends, this is a landmark decision as now the entire range of cotton from staple length 28mm to 35 mm and above is eligible to be included under the Kasturi Cotton Programme. This offers an extended scope for branding cotton and ensuring higher realizations. Fine Count Yarns beyond 60s count can also be spun from Kasturi Cotton thereby providing great opportunities for product development and branding.

We also took this occasion to meet Shri Giriraj Singh, Hon’ble Minister of Textiles and presented him a copy of the ‘Special Souvenir’ brought out on the occasion of the Council’s 70 years celebrations.

Meeting with Egyptian Delegation

Egypt had imposed a ban on import of raw Cotton from India on the ground of pests in shipments. To remove the ban and allow the import of raw Cotton from India, it was proposed that the Inspection team from Egypt would visit India for Pest Risk Analysis (PRA). Accordingly, NPPO Egypt - the Egyptian delegation visited India from 7.12.2024 to 12.12.2024 for inspection purposes.

On the sidelines of the visit by NPPO Egypt, a meeting with the Egyptian Delegation was held on 09.12.2024 at Vanijya Bhavan in New Delhi. TEXPROCIL participated in the meeting and made a presentation.

Meeting on Gujarat Textile Policy

A meeting exploring potential investment in the Textile sector in Gujarat was held with the Principal Secretary (Industries and Mines Department, Govt. of Gujarat) on 20th December, 2024 in New Delhi. The meeting was attended by the Council's Executive Director along with stakeholders based in Gujarat including Arvind Ltd., Welspun Global Brands, Creative Textiles, etc.

The meeting attracted the attention of potential investors and appraised them on the various facilities being extended for investment in the Textile sector in Gujarat.

National Trade Facilitation Action Plan (NTFAP) 3.0

The National Trade Facilitation Plan (NFTAP) 3.0 is being finalized in India, following the signing of the WTO Trade Facilitation Agreement (TFA) in 2017, which has accelerated trade facilitation efforts, particularly in customs and border procedures.

The Council attended a consultation meeting held on December 20, 2024, at Vanijya Bhawan, New Delhi, to discuss actionable targets for the next three years. These discussions are part of India's broader strategy to enhance trade facilitation and improve the overall ease of doing business within the country.

Ind-Aus ECTA

India and Australia celebrated the second anniversary of the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) on December 29, 2024. This agreement, signed on April 2, 2022, and operationalized on December 29, 2022, has been pivotal in enhancing trade relations between the two nations.

To commemorate this milestone, the Department of Commerce organized various events leading up to December 29, highlighting the achievements of the ECTA. A preparatory meeting was held on December 20, 2024, where the Council provided inputs to ensure successful execution of these events.

Hon’ble Commerce Minister, Shri Piyush Goyal described the ECTA as a "landmark" agreement that has led to over a 14% growth in exports for the fiscal year 2023-24 and improved market access for Indian exporters. The agreement has notably benefited micro, small, and medium enterprises (MSMEs) and farmers, while also generating numerous employment opportunities.

Building upon the successes of the ECTA, negotiations for the India-Australia Comprehensive Economic Cooperation Agreement (CECA) are ongoing. Both nations are aiming to deepen economic integration and have targeted a bilateral trade goal of AUD 100 billion by 2030.

20 Countries of Significance

The Department of Commerce had sought suggestions from textile EPCs regarding steps to be undertaken in ‘20 Countries of Significance’ identified as target destinations to grow exports of Indian textiles and apparel. The Council had attended a VC meeting held earlier on 3rd December 2024 under the chairmanship of Shri Sunil Barthwal, Commerce Secretary on “Textile sector issues and Export strategies”. The Council submitted suggestions on relevant destination markets for cotton textile exports under its purview.

Further, the Council also attended a review meeting under the chairmanship of Shri Ajay Bhadoo, Additional Secretary, Department of Commerce held in hybrid mode on 27th December, 2024 at Vanijya Bhawan, New Delhi. It was informed that a “Retreat for Commercial Wings of Missions of 20 Countries of Significance” including UAE and Saudi Arabia is scheduled to be held from 06th-08th January, 2025 at Vanijya Bhawan, New Delhi, in which the Council will also participate.

Way Forward

Friends, you will all agree that export is a function of demand and supply and depends on factors such as global demand, internal consumption and demand, order flow, logistics etc. Exports in FY 2024 were initially low mainly due to the geopolitical crises around the Red Sea, which affected export movement during January, February and March 2024. To be successful in the New Year 2025, we must renew our marketing efforts with attention for newer opportunities in product development.

I appeal to all of you to participate at BHARAT TEX 2025, being held in February 2025 in New Delhi. Also, invite buyers from across the world to visit the fair and use this opportunity to demonstrate to the world the formidable strength of the Indian Textiles Sector.

Looking towards the future with great optimism, I wish you all “A Happy and Prosperous New Year 2025!”


:: TEXPROCIL ::