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Time Running Out, Stakes Running High

The clock is ticking. Yet, the real challenge is not just about meeting deadlines — it’s about arriving at a consensus that works mutually, ensuring both India and the United States walk away with a sense of shared victory, not a win-lose or lose-win outcome.

The eagerly awaited India–US mini trade deal, which may serve as a framework for a broader agreement, still holds meaningful promise — no matter how limited or expansive its scope may eventually be. All eyes are on this negotiation, with anticipation running high among stakeholders, including the Indian government in New Delhi.

At this pivotal juncture, it’s clear: every international deal today carries global attention, amplified by the uncertain trade climate.

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Fashion Sector’s Eyes on Washington
Experts and trade strategists largely agree that even if this deal doesn't encompass all the nitty-gritty of tariffs and legal formalities, it can still mark a significant breakthrough. Most indications point to it being a provisional agreement — a timely stepping stone in a world where uncertainty has become the new norm.

Given the complex give-and-take of bilateral negotiations, and the persistent differences over sensitive sectors like agriculture and dairy, a detailed tariff roadmap may not feature in this round. But months of sustained effort by the negotiating teams on both sides have laid the groundwork.

India’s Position: Pragmatic Yet Firm
While India has clearly outlined its non-negotiables — particularly on sensitive domestic sectors — it has also demonstrated readiness to move forward. The bottom line remains: India seeks a fair, balanced outcome. With the initiative now largely resting with Washington, there’s optimism that a breakthrough could come within hours. Sources suggest that the absence of a formal tariff letter to India is a sign that talks may still be on the verge of success.

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Tariffs or Trade: Which Comes First?
At this point, it seems to be a binary outcome — either the announcement of the trade deal or a new tariff imposition from the US administration. As President Trump himself recently stated, “We’re very close to a deal with India.” That alone has sparked hope, especially across India’s textile sector, which has emerged as a likely beneficiary from the current tariff differentials.

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Textile Sector Poised for Advantage
This potential shift carries real weight. Analysts believe this could be a golden moment for India's garment industry to scale up its role in global trade. Despite its promise, the sector has historically underperformed. Now, with the US reportedly planning steep tariffs — 35% on Bangladesh, 20% on Vietnam, and as high as 40% on transshipped goods — India may be positioned to leverage clear cost advantages, provided the mini deal moves forward.

India’s Market Share: Room to Grow
Today, India commands just 6% of the US RMG (ready-made garments) import market, compared to Bangladesh’s 9% and Vietnam’s commanding 19%. This gap represents significant headroom for growth. And there’s more good news: countries like Laos and Cambodia, now facing 40% US tariffs, are likely to lose ground — creating fresh space for Indian exporters to fill.

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Looking Ahead with Cautious Optimism
If the mini deal includes even partial tariff rollbacks or fresh concessions, particularly the reciprocal tariffs previously levied by the US, it could mark a watershed moment for India’s trade ambitions. And if it lands on India’s Independence Day, the symbolism would only add to the significance.

Until then, the world waits — hopeful, watchful, and fully aware that this could be the moment where trade diplomacy and strategic opportunity align.

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INDOUSBTA

Global Apparel Trade Update | May'25

The global apparel trade & retail update report for May 2025. It provides an overview of the latest apparel consumption and trade data for major supplier and buyer nations.

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This month's key highlights are as follows:
Apparel Imports in Mar. 2025:
US: US$ 6.6 bn, up 12% YoY
EU: US$ 8.7 bn, up 23% YoY
UK: US$ 1.9 bn, up 36% YoY
Japan: US$ 2.2 bn, up 29% YoY.

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Apparel Exports in Apr. 2025:
China: US$ 11.2 bn, down -1% YoY
Bangladesh: US$ 2.4 bn, unchanged
India: US$ 1.4 bn, up 17% YoY
Vietnam: US$ 3.1 bn, up 15% YoY

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Apparel Retail Scenario:
US apparel store sales in Apr. 2025 are estimated to be 6% higher than Apr 2024, and home furnishing store sales are estimated to be -1% lower
UK apparel store sales in Apr. 2025 were £ 3.6 billion, which is 9% higher than Apr. 2024

The US online sales of clothing decreased by -6% in Q1 2025 over Q1 2024
In Mar 2025, Indian apparel retail sales registered a growth of 6% over Mar 2024.

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In Apr. 2025, US macroeconomics indicated a mixed reaction, as inflation fell to 2.3%, while consumer confidence dropped further to 86.0 from 92.9 in the previous month.

CREDITS: Wazir Advisors' recent report

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WazirAdvisors

CMAI leadership meets Gujarat Ministers to address GST rate hike concerns

In a significant move to address concerns surrounding the recent hike in GST rates, Santosh Katariya, President, and Ankur Gadia, Vice President of the Clothing Manufacturers Association of India (CMAI), held discussions with Shri Harsh Sanghavi, Hon’ble Minister of Home, Industry & Culture, Government of Gujarat. The meeting took place in Gandhinagar on January 2, 2025.

During the discussions, Shri Sanghavi demonstrated a proactive approach by arranging an immediate meeting with Shri Kanubhai Desai, Hon’ble Minister of Finance, Government of Gujarat. The CMAI leadership presented detailed facts, figures, and recommendations regarding the GST rate hike and its potential impact on the textile and apparel industry.

Both Shri Sanghavi and Shri Desai expressed their wholehearted support for the concerns raised by CMAI. They instructed the relevant officers in the Gujarat government to take note of the issues and forward them to the Central Government for further consideration.

"This engagement represents a significant step forward for our industry. The support shown by both Hon’ble Ministers gives us optimism for positive outcomes in the days to come," said Santosh Katariya, President of CMAI.

CMAI believes this development could pave the way for critical decisions that would alleviate the challenges faced by businesses due to the GST rate hike. The association remains hopeful that these discussions will result in constructive policy changes at the national level.

The industry now looks forward to swift action and favorable resolutions that will support its growth and sustainability.

CMAI leadership meets Gujarat Ministers to address GST rate hike concerns

CITI: India must engage U.S. on tariffs

"Bridging the Information Gap in the Textile and Fashion Industry."

CITI Urges Urgent Engagement to Leverage Opportunities in the US Textile Market During 2024, India exported T&A products worth US$ 10.5 bn to USA accounting for about 28.5% of India’s total T&A exports to the world and about 13% in India’s total merchandise exports to the USA.

Trade analysis shows that during the last 5 years, India has been a relatively preferred partner for the USA for its sourcing of T&A products as compared to other competing countries like China, Vietnam and Bangladesh.

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The recent reciprocal tariff of 27% for India, based on a factor of equalization, remains comparatively lower than tariffs of other competitors like China (34%), Bangladesh (37%), and Vietnam (46%). While it seems favourable to India, it will be important to see how this cost increase is adjusted.

In the past a large part of such cost escalation had to be borne by the suppliers. With such a steep increase, the entire cost cannot be passed on to the consumers, and hence the importers will look for more cost-competitive sourcing. Countries with better logistic and supply chain efficiencies will have a better capacity to retain relative cost competitiveness.

It will also be important to watch if there are sectoral tariff changes as an uniform tariff across all sectors may not be feasible.

As far as T&A products are concerned, analysis of top 10 imported products by USA from India as six digit HS code level shows that these accounts for about 40% of total T&A imports by USA from India and attracts an average tariff of 10.28% from USA side.

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Any potential tariff hikes could increase product costs, leading to short-term demand fluctuations. While there is no immediate adverse impact, a steep rise in overall tariffs could substantially reduce demand for Indian exports in the long run.

With ongoing tariff restructuring, it is crucial for the Indian industry to closely monitor the responses of competing nations.

Some competitors of the textile value chain are likely to announce a zero-tariff policy for exports to the USA. This evolving trade landscape would reinforce the need for India to engage proactively with US authorities to negotiate a more favourable tariff regime.

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The biggest concern for now is a possible decline in US demand for goods including textiles and a lack of clarity on emerging fine print.

It will be important to see how India can position itself among its competitors. However, at present the tariff announced by the USA presents an opportunity for India compared to its competitors in terms of better market access.

Given the uncertainty surrounding tariff structures, Indian exporters also need to explore alternative global markets to sustain and enhance trade volumes.

Strategic engagement with the USA remains critical, but a parallel focus on expanding into new destinations and enhancing our trade facilitation measures will ensure resilience.

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CITI

Reid & Taylor Set for a Bold Comeback in India Under Subrata Siddhanta's Leadership

The iconic menswear brand Reid & Taylor, founded in 1830, is poised for a powerful resurgence in India, led by industry veteran Subrata Siddhanta. With decades of rich experience spanning diverse sectors, Siddhanta brings a refined understanding of Indian consumer preferences and a clear roadmap to restore the brand’s premium status.

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Following its acquisition by Finquest Group in 2020, which pulled the brand out of bankruptcy proceedings under NCLT, Reid & Taylor is now focused on reestablishing itself as a benchmark in men’s fashion. Siddhanta’s leadership is backed by deep insight into evolving wardrobe choices of the Indian market, aiming to combine legacy with contemporary relevance.

Reinventing the Brand: A Modern Take on Menswear
Reid & Taylor is renewing its core focus on men’s apparel, including shirts, suits, and accessories, while actively exploring opportunities to diversify into innerwear and women's fashion in the near future.

The company is pursuing a strategic retail growth plan, with a target of 40 stores by the end of 2025, ensuring a balance between rapid expansion and sustainable operations.

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The journey begins with a flagship retail presence in Mumbai, followed by thoughtful expansion across Gujarat and other high-potential markets.

Reid & Taylor's growth strategy emphasizes a hybrid model—a mix of company-owned outlets and franchised stores—focused on long-term profitability and market relevance.

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Embracing Digital Transformation & Experiential Retail
Acknowledging the rise of digital commerce, Reid & Taylor is implementing a phased online rollout to complement its offline stores, aiming to deliver a seamless and engaging customer journey. By leveraging data from its physical stores, the brand plans to enhance customer experiences and brand visibility across platforms.

In addition, Reid & Taylor is actively exploring airport retail opportunities to engage mobile and premium consumers, adding another layer to its retail strategy.

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Reid&Taylor

Birla Cellulose Tops Canopy’s 2024 Rankings

Birla Cellulose, the sustainability-focused Man-Made Cellulosic Fibres (MMCF) business of the Aditya Birla Group, has once again demonstrated its leadership in responsible wood sourcing by securing the Number One ranking in Canopy’s Hot Button Report 2024.

This marks the fifth consecutive year that Birla Cellulose has received the highest rating of ‘Dark Green Shirt,’ cementing its position as a global leader in sustainable practices. The Hot Button Report, released annually by Canopy, a not-for-profit environmental organization, is a critical resource for fashion brands and retailers.

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The report independently assesses MMCF suppliers based on their forest fibre sourcing practices, enabling stakeholders to make informed choices that align with biodiversity conservation and deforestation-free supply chains. Commenting on the achievement, H.K. Agarwal, Managing Director of Grasim Industries Ltd. and Business Director of Birla Cellulose, said, “Birla Cellulose is proud to be leading the collaborative effort for scaling up Next Gen solutions.

This prestigious recognition affirms Birla Cellulose’s unwavering dedication to enhancing sustainable wood sourcing practices, forest conservation, and maintaining transparency in the value chain.” Nicole Rycroft, Executive Director of Canopy, also commended the company’s efforts: “Hearty congratulations to Aditya Birla Group for once again securing the top spot in Canopy’s 2024 Hot Button Report.

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We commend their hard work to remove Ancient and Endangered Forests from the MMCF supply chain and are encouraged by their consistent progress in bringing Next Gen fibres to market at scale.

We look forward to their continued leadership in 2025 in driving the sector’s transition to low-carbon Next Gen production.” Birla Cellulose continues to invest heavily in research and development, focusing on Next Gen Solutions.

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Through lab and pilot-scale trials, the company explores a diverse range of feedstocks to reduce the impact on forests. These efforts are aimed at significantly scaling up the use of Next Gen Solutions to transform the MMCF industry sustainably.

With 11 sites for pulp and fibre manufacturing, Birla Cellulose leverages environmentally efficient closed-loop technologies to minimize resource consumption and carbon emissions.

Its five advanced research centers, equipped with state-of-the-art facilities, further underscore its commitment to innovation and environmental conservation.

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BirlaCellulose

Building Trust in AI: A Global Imperative

At the "Enabling Trust in Technology in the Age of LLMs & GenAI" summit, Abhishek Singh, additional secretary at MeitY, took the stage to deliver a compelling address on one of today’s most pressing technological challenges—how to establish trust in artificial intelligence.

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He began by acknowledging the contributions of fellow panelists, including Mr. Dayal, who is spearheading efforts to develop AI standards, alongside committee member Hidar and esteemed colleagues Bharat, Mr. Chandrika, and Reena Gargi.

Singh posed a fundamental question: When do we trust technology? Just as society grew to trust automobiles and airplanes through rigorous safety standards, AI must undergo similar scrutiny. Transparency, accountability, and fairness are key to ensuring that AI serves humanity without bias or unintended consequences.

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One of the major concerns he highlighted was that AI development remains concentrated in a handful of countries and corporations, often trained on datasets that lack diversity. This can lead to inherent biases in AI models, making them less reliable for diverse populations, especially in the Global South, where digitalization has lagged. To address this, he called for internationally recognized AI standards that prioritize inclusivity and fairness.

India is actively working toward this goal through initiatives like the India AI Mission, where AI is being leveraged in healthcare, agriculture, language accessibility, and public services.

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He emphasized the need for standardized frameworks—especially for voice-based AI interactions, electronic health records, and interoperability between systems—to ensure widespread and equitable AI adoption.

Illustrating the real-world implications, Singh referenced the National Manuscript Mission, which aims to digitize ancient Indian texts. However, some scripts, such as Grantha, Brahmi, Prakrit, and Pali, still lack Unicode standards, making digital preservation a challenge. Developing robust AI standards for linguistic diversity will be crucial in making AI truly inclusive.

Singh praised the Bureau of Indian Standards (BIS) and C42 for hosting this critical conversation in India, bringing together global experts to shape the future of AI governance. He urged all stakeholders to collaborate in developing ethical, unbiased, and globally inclusive AI frameworks, ensuring that the next wave of technological advancements benefits all of humanity, not just a select few.

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CMAI’s 80th NGF 2025: India’s leading Apparel Fair opens with focus on growth

20 January 2025, Mumbai

The 80th edition of CMAI’s National Garment Fair (NGF) 2025, dedicated to showcasing the latest Spring-Summer collections, kicked off today at the Bombay Exhibition Centre in Mumbai. The event, which runs from January 15 to 17, was inaugurated by Ram Chandra Agarwal, Chairman & Managing Director of V2 Retail Ltd., a leading value retailer known for its rapid expansion in the industry. With over 150 stores across 112 cities and more than 10 lakh square feet of retail space, V2 Retail exemplifies the dynamic growth within the Indian retail sector.

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This year’s NGF is spread across an impressive 7 lakh square feet of exhibition space, hosting over 1220 apparel brands and 1120 stalls. The fair showcases the latest Spring-Summer collections across men’s, women’s, and kids' wear, making it a major hub for fashion and retail.

With such a vast display of trends, the event serves as a prime platform for B2B connections, offering unparalleled opportunities for industry players to collaborate, expand their reach, and contribute to the growth of India’s domestic retail market.

Acknowledged as the largest biannual trade fair in India’s apparel sector, NGF has consistently set benchmarks by blending creativity, innovation, and sustainability. The 80th edition cements NGF’s legacy as a powerful sourcing destination, facilitating networking while empowering brands and retailers to shape the future of Indian fashion.

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Industry leaders discuss growth and innovation

The key figures from the Clothing Manufacturers Association of India (CMAI) were present, including Santosh Katariya, President; Ankur Gadia, Vice President; and Naveen Sainani, Hon General Secretary.

In his address, Santosh Katariya highlighted the importance of NGF in fostering the growth of the Indian apparel sector, noting that despite ongoing challenges, the resilience of manufacturers and the strength of the domestic retail market instilled confidence for the year ahead.

The 80th National Garment Fair was graced by Shri Sanjay Savkare, Hon’ble Minister of Textiles, Government of Maharashtra, on the 2nd Day of the Fair, to encourage the Apparel Industry and assures policy and financial assistance support. Hon’ble Minister further added that  “Maharashtra has its own budget for the textile sector, and we are still in the process of planning it. We are awaiting additional supplementary demands, and new demands are also expected to arise in the future. A majority of these demands pertain to subsidies for the corporate and private sectors. We are also focusing on generating employment in regions like North Maharashtra, where suicide rates are high. To support this, we have provided additional incentives and subsidies in the energy sector, aiming to create jobs and set up factories in these areas,”

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“We are stepping into 2025 with optimism. NGF has been a vital platform for the Indian apparel industry, showcasing the latest trends and innovations and driving significant growth. It is an essential space for building relationships and strengthening the sector,” Katariya said.

Ram Chandra Agarwal, Chairman & Managing Director of V2 Retail Ltd., emphasized, "NGF is a unique platform with immense potential for garment manufacturers to reach $1 billion in turnover. It's a prime opportunity for exhibitors to build valuable B2B connections, drive business growth, and expand their reach to retailers across India. Trade fairs like NGF play a crucial role in shaping the future of the Indian apparel industry by fostering collaboration and innovation."

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Focus on consumer trends and sustainable fashion

The evolving consumer landscape was another focal point of discussion at the fair. Rahul Mehta, Chief Mentor of CMAI, pointed out the increasing demand for sustainable fashion. He observed that consumers today are more discerning, seeking stylish and eco-friendly options.

The show highlights a notable shift in the market toward innovative, sustainable designs that cater to these demands.

“As we move into the Spring-Summer season, the industry is tackling inventory challenges from the End-of-Season Sale, but the demand for the latest styles remains strong. Meeting consumer expectations for sustainable fashion will be a key factor for success this season,” said Mehta.

NGF 2025 continues to serve as a significant platform in the Indian apparel industry, fostering collaboration and innovation across the supply chain. As the market grows, with the apparel industry valued at INR 5.4 lakh crore, events like NGF play a pivotal role in shaping its future.

The fair brings together manufacturers, retailers, and designers, offering ample opportunities for networking and business development.

CMAI’s 80th NGF 2025: India’s leading Apparel Fair opens with focus on growth

How to choose Monsoon Clothes for babies

Monsoon brings a refreshing change but also presents unique challenges, especially when dressing your little ones. As parents, ensuring your baby stays comfortable, dry, and safe in such weather is paramount.

Here are some essential tips to keep in mind while choosing clothes for babies during monsoon season:
1. Opt for Breathable Fabrics:
During monsoon, humidity levels are very high. So, it is necessary to look for fabrics like cotton and linen that are breathable and feel soft against the baby’s skin. As a parent, one should go for a brand that is conscious about children's sensitive skin and makes garments from sustainable organic cotton that complies with OEKO-TEX international safety standards.
2. Comfortable Outfits:
Rain leads to humidity and dampness, which may cause itching and rashes on the sensitive baby's skin. It is therefore important to make sure that the clothes they wear are comfortable and not too tight.
3. Embrace Layering:
Weather can be very unpredictable during the rainy season with sudden dip in the temperature at times. Hence, layering your baby’s clothing is crucial. Start with a light base layer like cotton, and then add a full sleeved top or light jacket for warmth. This approach allows you to easily adjust your little one's outfit according to the weather.
In summary
Embrace the beauty of the monsoons by choosing the right clothing for your baby. These tips will help you keep your little one happy, safe, dry, and most importantly comfortable, hence allowing your baby to enjoy the rainy season to the maximum.

CREDITS: Contributed by  CHICCO India, a Baby Care specialist brand from Italy!

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