Dear Friends,

The Economic Survey 2025, presented just before the Union Budget, pithily observed that it is "Time to be deft about our warp and weft", highlighting the challenges being faced by textile exporters. The Survey cited complex procedures, rising costs, and sustainability regulations as impediments to the textile sector's growth. Addressing these challenges can significantly reduce costs and ease the burden on exporters, helping them become more efficient and competitive, said the survey.

The Survey was able to capture the sentiments of the exporting community in the most apt manner. We sincerely hope that some of the key suggestions in the Survey like simplification, consolidation, and elimination of processes that consume the financial and managerial bandwidth of our exporters, are implemented over time.

Union Budget 2025-26

Following the trail, Union Budget 2025-26 gave a clarion call to embrace transformation and unlock the full potential of India’s textile industry. Calling for a shift in focus towards effective implementation and collaboration between the government and industry, the Union Budget has proved itself to be a visionary blueprint for the future of India’s textile industry. By addressing critical areas such as cotton productivity, technical textiles, export promotion and handicrafts, Union Budget 2025-26 aims to create a more sustainable, innovative and globally competitive sector.

The Union Budget 2025-26 seeks to address the ongoing challenges and propel the industry forward. The 19% increase in allocation to the Textile Ministry in the budget reflects the government’s commitment to addressing long-standing challenges and unlocking new opportunities for growth.

Indian textile has its moment @ BharatTex 2025

The second edition of BharatTex—mega textile event, which brought together key stakeholders from the textile industry, was organised at IEML from February 12-15, 2025 in Greater Noida and Bharat Mandapam February 14-17 in New Delhi with a strong emphasis on innovation, sustainability, and global collaborations. With participation from over 120 countries, 33 international trade associations, and 46 leading global brands, BharatTex 2025 reinforced India’s role as a key player in the global textile supply chain.

In my view, as a member of the core organising committee, BharatTex 2025 was able to offer all the ingredients necessary to propel India’s textile sector forward. As the event progresses onwards to its future editions, I am confident that it will continue to ensure that India remains at the forefront of the global textile industry.

TEXPROCIL @ BharatTex 2025

TEXPROCIL, as one amongst the consortium of textile EPCs that organized the global textile event, contributed towards the success of BharatTex 2025 by mobilising participation of 148 member companies (5700 Sqm of exhibition space) and facilitating the visit of 280 buyers from 36 countries across the globe.

TEXPROCIL also partnered with Better Cotton Initiative (BCI) in organizing a panel discussion titled ‘Cotton Value Chain: Global Trends, Challenges and Opportunities’ on the latest global trends shaping the cotton value chain, addressing challenges, and identifying opportunities to drive sustainability, efficiency, and competitiveness across the sector.

As an implementing agency for the ‘Kasturi Cotton Bharat’ programme, the Council ensured that numerous brands including Alok, Adwaith, Creative Textiles, and Trident, amongst others, showcased products made exclusively from Kasturi Cotton at the event.

Also, for the first time, CITI-TEXPROCIL Leading Ginners' Award was presented to encourage active participation in the Kasturi Cotton program, which has gained widespread industry acceptance.

Kasturi Cotton @ BharatTex 2025

Kasturi Cotton made a significant impact at BharatTex 2025 with a prominent booth and kiosk that garnered attention from industry leaders. It was a matter of great honour and privilege for me personally, as the Chairman of TEXPROCIL, to welcome the Hon'ble Prime Minister, Shri Narendra Modi ji and engage in discussions with him about the program's progress. The Hon’ble Prime Minister suggested to decide on the future roadmap for ‘Kasturi Cotton’ by scaling-up operations, including ELS cotton and making contributions to growth of cotton productivity in India.

A Masterclass on Kasturi Cotton, led by Shri Sunil Patwari, Immediate Past Chairman of TEXPROCIL, and Dr. P.K. Mandhayan, Retired Principal Scientist, ICAR-CIRCOT attracted tremendous interest from visitors, highlighting the program's growing influence. A key milestone was the signing of a MoU with Alok Industries Ltd. and Indo Count Industries Ltd. to promote Kasturi Cotton on a global scale.

Overall, Kasturi Cotton's presence at Bharat Tex 2025 marks a major step forward in establishing a globally recognized Indian cotton brand, strengthening the Indian textiles industry.

Navigating the U.S. Tariff threats

President Trump, in his second term, is looking to revisit many issues including—existing global frameworks, trade relationships, and also America’s engagement in world conflicts—many of which have a direct bearing on India. The U.S. tariffs are likely to hit Indian textiles, amongst other sectors, making them vulnerable for higher duties, as per reports by Moody's—global credit rating agency and think-tank Global Trade Research Initiative (GTRI).

India is seeking ways to navigate these changes and maintain a strong relationship with the U.S., a strategically important bilateral partner. On February 13, during the visit of Hon’ble Prime Minister of India Shri Narendra Modi ji to the United States, India and the U.S. agreed on a new goal — “Mission 500” — aiming to more than double the bilateral trade to $500 billion by 2030.

Both the issues of reciprocal tariffs and signing of the multi-sector Bilateral Trade Agreement (BTA) with the U.S. by the fall of 2025 are engaging the attention of our Government. With a limited time frame available, it has become even more challenging to shield Indian exports from the U.S. President Donald Trump’s “fair and reciprocal plan” trade, which seeks to impose new levies on a country-by-country basis.

Way forward

Friends, in a changing world, bilateral agreements are superseding multilateral commitments. Also, the WTOs time honoured principles of “most favoured nations” (MFNs) and “special and differential treatment provisions” (S&D or SDT) for developing countries are being questioned against a background of “reciprocal tariffs” and “protectionism”. Developing countries like India will have to recalibrate their export strategies to keep up with the changing global trading regime. Going forward, the key component of any strategy will be to remain cost competitive inspite of the emerging challenges.

:: TEXPROCIL ::