Textile

The Indian government’s decision to revoke the Quality Control Order (QCO) on polyester products has been met with widespread approval across the textile sector. The move is expected to ease raw material imports, reduce production bottlenecks, and enhance global competitiveness for domestic manufacturers. Industry stakeholders believe that lifting the QCO will lower input costs and help revive export momentum in a sector that contributes significantly to India’s GDP and employment.

India’s textile export sector has recorded an impressive 10% year-on-year growth, underscoring the nation’s strengthening position in the global apparel and fabric trade. The industry, which remains one of India’s largest employment generators, has expanded its export reach to 111 countries, reflecting sustained global demand and resilience amid shifting trade dynamics. This growth is attributed to rising orders from traditional markets like the United States and Europe, alongside strong traction in emerging economies across Africa, Latin America, and Southeast Asia.

Sri Lanka’s apparel sector, the country’s top export earner, has sounded an alarm over mounting inefficiencies at Colombo Port, urging the government to expedite long-overdue reforms. The Joint Apparel Association Forum (JAAF) warned that congestion, manual processing, and frequent vessel diversions are undermining the nation’s export competitiveness.

Pakistan’s textile exports have reached their highest level in three years, signaling renewed momentum in one of the nation’s most vital economic sectors. The surge is attributed to rising global demand, a stable exchange rate, and government-led incentives that have strengthened competitiveness in international markets. Export earnings climbed significantly on the back of strong orders from the United States, the European Union, and Middle Eastern economies.

The Indian government has extended the application deadline for the Production-Linked Incentive (PLI) Scheme for the textiles sector to December 31, 2025. This decision follows a strong response from industry stakeholders since the scheme's reopening in August 2025. The extension aims to provide additional time for investors to participate in the initiative, which seeks to enhance domestic manufacturing capabilities, promote exports, and bolster the competitiveness of India's textile industry.

Background of the PLI Scheme for Textiles

Shree Ramkrishna Exports, a prominent player in the textiles and diamond trading industry, has announced its entry into the pharmaceutical sector, signaling a strategic diversification move. The company plans to leverage its financial strength, operational expertise, and market networks to establish a foothold in healthcare manufacturing and distribution. Analysts note that this expansion aligns with India’s growing domestic and global pharma demand, offering potential for significant revenue growth.

India’s decision to allow duty-free cotton imports has provided a significant boost to the country’s textile exports, enhancing competitiveness in global markets. The move addresses domestic supply constraints, ensuring that manufacturers have access to high-quality cotton at competitive prices. Industry analysts highlight that this measure strengthens India’s position as a leading exporter of textiles and apparel while supporting local manufacturers’ cost-efficiency. Exporters anticipate improved margins, higher production volumes, and increased participation in international trade fairs.

The Dravida Munnetra Kazhagam (DMK) has approached the Prime Minister, highlighting the adverse impact of newly imposed U.S. tariffs on Tamil Nadu’s textile exports. Industry representatives report that the levies are affecting competitiveness, with manufacturers facing margin pressures amid an already challenging global market. The DMK has requested policy intervention, urging the central government to engage diplomatically and explore relief measures.

India’s textile sector, a cornerstone of the country’s export economy, is bracing for turbulence following the United States’ recent tariff measures. Industry leaders fear that the additional duties could dampen competitiveness, disrupt trade flows, and weigh on earnings at a time when global demand is already subdued. With textiles accounting for a significant share of India’s outbound shipments and providing employment to millions, the policy change poses both economic and social challenges.

India’s textile industry is witnessing renewed momentum as escalating tariff tensions between the United States and China create opportunities for alternative sourcing markets. With U.S. importers seeking to diversify supply chains and reduce dependency on Chinese manufacturers, India has positioned itself as a competitive hub for textiles and apparel exports.