Apparel industry eyes larger share of global market with new self-defined benchmarks
24 January 2026, Mumbai
Apparel industry is aggressively positioning itself to capture a larger share of the global market, despite a shifting regulatory landscape in the European Union. During the recent inauguration of the 74th India International Garment Fair (IIGF) at Yashobhoomi, New Delhi, Giriraj Singh, Union Minister for Textiles highlighted India’s strategic shift toward indigenous standards such as IndiaSize and VisionNxt. This move toward self-defined benchmarks aims to decouple the domestic manufacturing ecosystem from foreign standards, fostering a unique ‘Made in India’ identity for global retailers.
Navigating the EU-GSP withdrawal challenge
A critical development for the sector is the European Union’s suspension of Generalised Scheme of Preferences (GSP) benefits for Indian textiles and garments, effective January 1, 2026. This transition raises import duties for many apparel lines from 9.6 per cent to the standard 12 per cent Most Favored Nation (MFN) rate. While this graduation reflects India's maturity as an exporter, it creates a temporary margin squeeze. Industry leaders remain optimistic, however, as negotiations for the India-EU Free Trade Agreement (FTA) are slated for conclusion by late January 2026. The FTA is expected to eventually neutralize these tariff hikes and potentially double export volumes to the bloc within three years.
Scaling output through verticalization and leadership
On the corporate front, sector titan Arvind Limited is reinforcing its expansionist agenda with the appointment of Rajarshi Ghosh as CEO-Denim Business. Tasked with driving ‘ownership-driven outcomes,’ Ghosh takes the helm as the company reports a 70 per cent Y-o-Y growth in net profit for Q2 FY26. Arvind’s verticalization strategy - integrating fabric production with high-volume garmenting - saw output reach 10.7 million pieces last quarter. This operational efficiency is paired with a heavy investment in Zero Liquid Discharge (ZLD) technology, catering to the ‘clean denim’ demands of marquee international brands like Levi’s and Gap Inc.
Towards a $40 billion export milestone
Despite global headwinds, cumulative Ready-Made Garment (RMG) exports for April–December 2025–26 reached $11.58 billion, a 2.4 per cent increase.
To sustain this momentum toward the $40 billion apparel export target by 2030, the Apparel Export Promotion Council (AEPC) has urged the government to introduce a Focus Market Scheme for the US and enhance interest subvention rates to 5 per cent.
These measures are viewed as vital for MSMEs to maintain price competitiveness against duty-free rivals like Bangladesh and Vietnam.
Arvind Limited is a vertically integrated textile-to-retail conglomerate and India’s largest denim exporter. Serving global giants like Levi’s and Gap, the firm operates an ecosystem from fiber to finished apparel.
With a current revenue target of Rs 10,000 crore, Arvind is prioritizing renewable energy and green technology to lead the premium "clean denim" market.
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