Dear Friends,

India’s cotton textiles sector is navigating a pivotal moment amid shifting global trade dynamics and emerging supply chain pressures. While India remains a leading cotton producer, a continuing reliance on imports of contamination-free cotton is growing, straining foreign exchange reserves and exposing weaknesses in the domestic value chain. To address this imbalance, there is an urgent need to revamp India’s cotton ecosystem—from farming practices to supply chain efficiency—with a focus on quality, sustainability, and innovation. 

Recent export data from April to June 2025 shows a decline in exports of cotton yarn, fabrics, and textile products. A growth of 8.91% registered in apparel exports, led to an overall 1.92% rise in textiles and apparel exports. However, we expect the performance to improve in the 3rd and 4th quarter of the current fiscal.

On the trade negotiation front, India is progressing toward a trade deal with the US to reduce tariffs. The Trade and Economic Partnership Agreement (TEPA) with EFTA countries—which comprises Iceland, Liechtenstein, Norway, and Switzerland—is set to be implemented from October 2025, promises US$100 billion in investment and one million new jobs. Switzerland has ratified the pact, finalizing EFTA's endorsement. We see good opportunity for Home Textiles and Apparel in markets like Norway and Switzerland.

The India-UK FTA is a landmark achievement which assures growth in exports of Home Textiles and Apparel on account of zero duty. The negotiators under the visionary guidance of the Hon’ble Commerce and Industry Minister Shri Piiyush Goyal, have fulfilled a long standing demand for zero duty on textile and clothing imports from India thereby bringing it on par with our competitors viz. Bangladesh, Pakistan, Turkey, Vietnam, etc. The trade and industry looks forward to an early conclusion of India-EU FTA on the lines of India-UK FTA. 

With 13 active FTAs and several under negotiation, India’s exporters remain optimistic about the transformative potential of upcoming trade agreements.

In this context, TEXPROCIL has remained steadfast and proactive, advocating for the interests of Indian exporters through policy engagement, trade facilitation, digital transformation initiatives, and branding efforts. We are fully committed to enabling our members to not only respond to change but to shape it—to lead rather than follow.

Visit to Japan

With Japan’s textile imports exceeding USD 30 billion, India’s modest 1.2% share highlights substantial untapped potential—particularly in the home textiles and made-ups segments.

To deepen trade ties and explore new opportunities, an official delegation led by Hon’ble Union Minister of Textiles, Shri Giriraj Singh, visited Japan from 14–15 July 2025. I had the privilege of accompanying the delegation alongside Shri Rohit Kansal, Additional Secretary, Ministry of Textiles.

At an interactive session, H.E. Shri Sibi George, India’s Ambassador to Japan, delivered the opening remarks, followed by a detailed policy presentation by Shri Rohit Kansal. Key meetings were held with leading companies including Fast Retailing, Daiso, YKK, and Asahi Kasei. 

Discussions centred on enhancing sourcing from India, encouraging investment, and boosting collaborative manufacturing. The Minister also inaugurated the 16th India Trend Fair in Tokyo, a premier platform for Indian exporters to connect with Japanese buyers.

The visit underlined the need to fully utilise CEPA provisions, elevate quality and compliance standards, and build long-term partnerships to strengthen India’s presence in Japan’s quality-conscious and sustainability-driven textile market.

Trade Environment

The global trade environment is evolving rapidly. Geopolitical shifts, regional trade blocs, regulatory overhauls, and climate-conscious consumer behaviour are creating new rules of engagement for textile exporters. At the same time, the international community is increasingly focused on sustainability, ethical sourcing, and compliance, making it imperative for India to recalibrate its strategy.

On the domestic front, the Government of India has set an ambitious target to increase textile exports to USD 100 billion by 2030–31, underlining the sector’s strategic importance in the national economy. A dedicated Task Force on Textile Exports, chaired by the Commerce Secretary, has been established to formulate actionable strategies. TEXPROCIL has actively participated in this platform, voicing the concerns of our members and putting forth pragmatic solutions for increasing competitiveness.

Meeting with Hon’ble Union Minister of Agriculture

One of the key developments this month was the Council’s engagement with Hon’ble Union Minister of Agriculture, Shri Shivraj Singh Chouhan, on July 11, 2025, in Coimbatore. TEXPROCIL Vice Chairman, Mr. Ravi Sam, along with CITI Past Chairman, Mr. T. Rajkumar, submitted a memorandum seeking the removal of the 11% import duty on cotton, which currently burdens both exporters and spinners.

This coincided with the high-level stakeholder consultation on cotton productivity, chaired by the Minister himself. The Minister announced a renewed commitment to ushering in a “New Cotton Revolution”, with a clear focus on improving yield, profitability, and quality. Critical measures include revised penalties for substandard inputs, AI-enabled pest management, and research-backed promotion of premium seed varieties. These announcements are in perfect alignment with the goals of the recently launched Mission for Cotton Productivity, a five-year initiative aimed at revitalizing India’s cotton production system and aligning it with both farmer and industry needs.

TEXPROCIL – Amazon Global Selling Webinar

Recognising the pivotal role of digital trade channels, TEXPROCIL collaborated with Amazon Global Selling to organise a webinar on July 25, 2025, focused on enabling MSMEs to enter and scale in global e-commerce markets. With detailed sessions on account setup, product listing, cross-border logistics, and compliance, the webinar empowered participants with the knowledge and tools to tap into global buyers directly.

The prospects for growth in trade through E-Commerce has raised the eagerness of Indian exporters to embrace digital transformation. TEXPROCIL will continue to invest in such capacity-building programs to help our members grow beyond conventional trade channels.

Participation at Intex South Asia, Dhaka, Bangladesh

As part of our ongoing export promotion efforts, TEXPROCIL facilitated India’s strong presence at the 16th Intex South Asia Show in Dhaka, Bangladesh, held from June 25–27, 2025. The India Pavilion showcased innovations in cotton and MMF textiles, with Kasturi Cotton Bharat being a highlight.

The show enabled fruitful interactions with major international buyers, sourcing companies, and associations such as BGMEA and BKMEA. Key issues such as payment delays, visa facilitation, and inland waterway logistics were discussed in official meetings, reaffirming Bangladesh’s importance as a strategic and growing market for Indian textiles.

Way Forward

Looking ahead, India’s cotton textile sector must position itself for the next phase of global trade, marked by technology adoption, sustainability leadership, and product innovation. TEXPROCIL remains committed to supporting its members through policy advocacy, global branding, and market development initiatives.

Let us work collectively to reinforce India’s image as a reliable, quality-conscious, and sustainable sourcing hub for cotton textiles. The time to act is now—and the Council is ready to collaborate in that mission with you.

:: TEXPROCIL ::