Textile Market News

The tariffs imposed by the US have been a major blow to the South Indian textile industry, particularly in the major hub of Tiruppur, which accounts for a substantial portion of India's knitwear exports. The tariff rate, which has been increased to as high as 50 per cent, makes Indian goods significantly more expensive for American buyers. MK Stalin, Chief Minister, Tamil Nadu says, the tariffs have had a trade impact of around Rs 3,000 crore on the state's textile industry.

The Mahatma Gandhi Institute for Rural Industrialization (MGIRI) has launched a project to redesign the Charkha for the 21st century. The initiative was launched in collaboration with the Khadi and Village Industries Commission (KVIC), the Union Ministry of Micro, Small and Medium Enterprises (MSME), and a number of top-tier academic and research institutions across India.

Shree Parvati Power Loom Weavers Cooperative Society in Jagatsinghpur, Odisha hope to revive its defunct mill in Rahama. A major local employer with 1,200 workers, the mill had shut down after the super cyclone in 1999. However, recent news about another defunct mill in the area, the Shree Sarala Spinning Mill, reopening under a public-private partnership, has sparked optimism. This announcement was made by Sampad Chandra Swain, MLA, Paradip and Minister of State, who oversees industries, skill development, and technical education. The workers hope, he will also help revive their factory.

While some critics, including opposition leaders, fear that the removal of 11 per cent import duty on raw cotton will hurt local farmers, the Textile Ministry insists, it will not harm their interests. Pointing to the Minimum Support Price (MSP) program, managed by the Cotton Corporation of India, the ministry says, the program guarantees at least 50 per cent more earnings to farmers than their production costs.

The Union government has extended the application window for the Production Linked Incentive (PLI) scheme for textiles until September 30, 2025. This decision comes after a strong and enthusiastic response from the industry. For the application period in August, the government received 22 new entries from companies in the man-made fiber (MMF) apparel, fabrics, and technical textiles sectors.

As per a report by the Finance Ministry, the government has extended the exemption on cotton import duty until December 31, 2025. The duty waiver was initially introduced as a temporary measure from August 19 to September 30, 2025. But, it has now been extended to ensure steady cotton availability for domestic manufacturers and exporters.

In a bid to address a long-standing issue threatening the man-made fiber (MMF) textile industry, the Northern India Textile Mills Association (NITMA) has urged the Union Finance Minister and the GST Council to ensure a uniform GST rate of 5 per cent is levied on both Polyester Staple Fiber (PSF) and Polyester Staple Yarn (PSY), thus aligning them with the tax on fabrics and garments.

The North Eastern Handicrafts & Handlooms Development Corporation (NEHHDC) opened a new yarn depot in Itanagar. Inaugurated by Mara Kocho, Managing Director, the facility aims to provide local artisans and weavers direct access to high-quality raw materials. Located at the Khinam Fashion House, the facility will supply ‘Purbashree Yarn,’ which includes specialized varieties like Ahimsa Silk and Premium Eri Yarn. These yarns are certified under the Oeko-Tex Standard 100, ensuring they meet strict safety and environmental standards.

To reduce the impact of the steep 50 per cent US tariff recently, India is launching a dedicated outreach program in 40 key textile-importing countries. The initiative will include countries like the UK, Japan, South Korea, Germany, and Canada. The tariff in effect from August 27, 2025, is expected to impact India’s exports worth over $48 billion, with major fallout textiles, leather footwear and machinery sectors.