Dear Friends,

The global economy remains under strain from geopolitical tensions, supply chain disruptions, and political uncertainty. In this challenging environment, the Indian Government is actively working to protect exporters' interests. The world continues to feel the impact of U.S. President Trump's April 2 announcement of reciprocal tariffs on several countries, including India and China. Although a 90-day suspension was declared on April 9—excluding China and Hong Kong—the 10% baseline tariff remains in effect. Around 75 countries have since sought trade talks with the U.S., as the tariffs threaten to disrupt global trade and supply chains.

High-Level Meeting with Hon’ble CIM

To address these evolving challenges, a high-level meeting was convened on April 9, 2025, at Vanijya Bhawan, New Delhi, chaired by the Hon’ble Minister of Commerce & Industry, Shri Piyush Goyal. The session brought together key stakeholders, including Export Promotion Councils (EPCs) and industry associations, to review the ongoing efforts aimed at cushioning the impact on India’s exports.

During the meeting, the Hon’ble Minister updated the participants on negotiations with the U.S. toward a multi-sectoral Bilateral Trade Agreement (BTA) and assured exporters of the Government’s commitment to creating a conducive trade environment. TEXPROCIL, representing the cotton textiles sector, highlighted key issues and urged the Government to take proactive steps to support the industry during these uncertain times.

Strengthening Ties with Australia

The Council in coordination with the Australian Trade and Investment Commission (Austrade) and the Australian Consulate General, Mumbai organized a meeting with a high-level delegation from the Australian Cotton Shippers Association (ACSA) to Mumbai on 4th April 2025 at the Council’s Head Office.

We welcomed the delegation from ACSA along with Shri Manoj Patodia, Past Chairman, Shri Arun Todi, CoA Member and Executive Director of the Council. Representatives from Indo Count Industries Ltd, Gimatex Industries Pvt. Ltd., and Lahoti Overseas were also present at the meeting.

During the meeting, Executive Director, Dr. Siddhartha Rajagopal presented the Council’s key initiatives, including the Kasturi Cotton Bharat (KCB) and General Certificate of Conformity (GCC) traceability platforms, along with data on the growing imports of Australian cotton following the India-Australia ECTA.

The members of the delegation were impressed to know about the Traceability platform of Kasturi Cotton Bharat and its ability to trace cotton up to farm level using a QR code. Both sides agreed to collaborate in near future to enhance competitiveness in the cotton sector.

Engagements with Commerce Ministry Officials

The Ministry of Commerce convened a series of meetings with EPCs on 2nd April and 8th April, 2025 taking feedback of their evaluation of the current trade situation and their assessment of the impact of U.S. tariffs. During the meetings, the participating apex Export Promotion Councils including TEXPROCIL provided information on the key issues facing the trade and industry. The Council also raised serious concerns about the adverse effects of the tariffs on demand, business margins, and order cancellations — issues particularly critical for MSME exporters. The Council cautioned that these challenges could threaten business continuity and employment in the textile sector.

Meeting on RoSCTL Scheme

TEXPROCIL Executive Director, Deputy Executive Director (DED), and other Council officials participated in a virtual meeting held on 3rd April 2025 at 3:00 PM. The meeting, chaired by the Ms. Shubra, Trade Advisor, Ministry of Textiles, reviewed the Rebate of State and Central Taxes and Levies (RoSCTL) rates on the export of garments and made-ups. Some of the issues raised by the Council included – Inclusion of additional embedded taxes like port charges, sustainability, changes in rate caps etc. in the RoSCTL Proforma; Inclusion of RoSCTL for Advance Authorisation holders; and continuation of RoSCTL for another 5 years.

Cotton Productivity Mission and Fibre Development

On April 10, 2025, a meeting was held in Mumbai with Ms. Padmini Singla – the newly appointed Joint Secretary (Fibre), Ministry of Textiles. Discussions centered on the Cotton Productivity Mission (CPM), a five-year plan introduced in the Union Budget 2025–26. Aimed at increasing productivity — especially for Extra Long Staple (ELS) cotton — the initiative seeks to expand fibre testing infrastructure, enhance ELS seed production, and further develop the Kasturi Cotton Bharat brand. TEXPROCIL, as the implementing agency, provided an update on the progress of the ‘Kasturi Cotton’ initiative and reaffirmed its commitment to driving growth and sustainability in India’s cotton sector.

Webinar on India–Bangladesh Trade Tensions

Amid escalating trade tensions, including India’s recent revocation of the trans-shipment facility for Bangladesh’s third-country exports (except to Bhutan and Nepal), TEXPROCIL and SIMA co-hosted a webinar on April 24, 2025. The session addressed the implications of Bangladesh’s suspension of Indian yarn imports via land ports.

The eminent panellists included Mr. Sunil Patwari & Mr. Manoj Patodia, Past Chairmen of TEXPROCIL, Mr. S. Dinakaran, Past Chairman, SIMA and Mr. Ashish Bagrodia, Managing Director, Winsome Textiles. Dr. K. Selvaraju, Secretary General, SIMA welcomed all to the webinar moderated by the Council’s Executive Director, Dr. Siddhartha Rajagopal.

The event featured leading industry voices and included input from Mr. Fazlee Shamim Ehsan, BKMEA’s Executive President, who emphasized on efforts taken from the Bangladesh side to resolve the issue. The webinar was attended by leading Indian companies exporting to Bangladesh. The webinar fostered meaningful dialogue and generated suggestions for restoring and enhancing bilateral trade.

Promoting Kasturi Cotton @ CMAI FAB Show

The Council promoted Kasturi Cotton at the CMAI FAB Show (April 21–23, 2025) held at the Bombay Exhibition Centre, NESCO, Goregaon, in Mumbai. The Kasturi booth showcased collections made with certified, traceable cotton and drew strong interest from visitors eager to learn more and source the product. The show was instrumental in raising brand awareness and highlighting sustainability and quality.

Meeting of Apex Committee on Kasturi Cotton Bharat

The 7th meeting of the Apex Committee on Kasturi Cotton Bharat was held on April 22, 2025, in New Delhi, chaired by Smt. Neelam Shami Rao, Secretary, Ministry of Textiles. The Committee reviewed the initiative’s progress and discussed strategies to strengthen supply chains and boost market adoption. The Council was asked to provide a roadmap aiming that 10 percent of the country’s cotton gets certified as ‘Kasturi Cotton’.

Plans for FY 2025–26 include empanelling more accredited agencies, launching brand-building campaigns, participating in trade fairs, and conducting workshops. The Committee reaffirmed its commitment to promoting Kasturi Cotton and ensuring sustainable growth in India’s cotton sector.

Way Forward

Friends, according to the IMF, increasing trade restrictions could reduce global output by as much as $7.4 trillion. With global trade fragmenting — as seen in U.S.–China tensions and Europe’s shift away from Russia — India’s textile sector stands at a crossroads.

This moment presents an unprecedented opportunity to revitalize India’s rich textile heritage and transform traditional strengths into a globally competitive industry. Achieving this will require more than incremental improvements — it calls for a comprehensive approach focused on scale, supply chain agility, faster time-to-market, and a bold reinvention of products and target markets.

:: TEXPROCIL ::