AGP Executive Report

Textile craft meets tech: A new explainer says weaving helped invent modern computing, and today textile makers are again using looms and patterns to imagine the future of technology. Handloom spotlight: Manish Malhotra’s handloom Bandhani saree look worn by Athiya Shetty keeps Indian craft in the fashion spotlight, while Nita Ambani’s Independence Day saree pairs Odisha Pattachitra painting with luminous Tussar silk. Trade facilitation for apparel sourcing: India’s Tiruppur Exporters’ Association will launch a revamped buyer-facing website to connect importers directly with exporters and cut out middlemen, plus enable online Certificates of Origin. Skills pipeline for textiles & industry: Zimbabwe’s Kadoma opens its first tertiary technical college, repurposing the former Kadoma Cotton Training Centre to expand local technical education. Circular/used clothing access: China’s YIKAO Rewear Supply expands global second-hand clothing sourcing with 20kg trial orders for smaller buyers. Heritage textiles preserved: Northern Ireland’s “Stitched – the Shirt Factory Quilt Project” uses grant funding to conserve and document Derry’s shirt-making textile collection. Policy push for fisheries (textile-adjacent jobs): Bangladesh’s National Fisheries Fortnight highlights using underused water bodies to create jobs and boost exports.

Textile Trade & Margins: India’s textile sector is showing earnings resilience but margin pressure is rising, with SBI Research flagging input-cost-driven EBITDA margin compression in Q1 FY27 and noting textiles among the top PAT growers. Fashion & Craft Identity: Yeola’s Paithani weavers are debating whether “fusion Paithani” saris—mixing Paithani borders with Kalamkari/Bandhini/Jamdhani motifs—are protecting tradition or diluting it as retailers chase ₹1-5.6 lakh price tags. Industry Modernisation: Cambodia’s garment sector is being pushed toward automation and tech upgrades at a Phnom Penh machinery expo, as brands demand faster, cleaner, more transparent production. Policy & Compliance: Pakistan’s FPCCI urges Nepra to consult industry before revising incremental power packages, warning of cost distortions for industrial consumers. Export Headwinds: Vietnam faces steep export targets for the last five months of 2026, adding pressure on exporters amid trade barriers and competition. RMG Watch: Bangladesh’s EU garment exports fell 16.43% in Jan-Jun 2026, while a separate report highlights forged “export” records worth about Tk 24 crore.

Cambodia Garment Upgrade: Cambodia’s garment sector is being pushed toward a faster, more sustainable, tech-led model as global brands demand shorter lead times and better transparency, with officials citing the need for AI/robotics and productivity gains. India Cost Squeeze: Indian textile and apparel makers warn FY27 margin pressure from higher wages plus cotton, yarn and petrochemical-linked costs, with some firms turning to selective price hikes, automation and lower-cost expansion. Textile Trade Signals: CITI data points to textile-apparel export declines of 1.84% in Apr–July 2026, with apparel shipments down sharply, while the Red Sea crisis continues to disrupt shipping and add weeks to routes. Cotton Calendar: World Cotton Day 2026 is set for Oct 7 in Tashkent, bringing governments and industry groups together around “Cotton for Good.” Circular Economy Push (Ghana): Ghana urges youth to lead its circular economy transition through innovation and entrepreneurship. Cultural Textiles Spotlight (India): Google’s Independence Day Doodle highlights India’s weaving and printing heritage, from Jamdani and Ikat to Ajrakh and Kasavu. Policy & Power (India): Bhiwandi consumers may see higher bills as fuel adjustment charges rise, adding another cost pressure point for industry.

Denim Capacity Watch: Arvind Ltd says denim fabric volumes hit a 16-quarter high and is exploring leased, asset-light manufacturing to add capacity without heavy new capex, while also bringing Japanese design support to push premium products. Retail Craft Push: Michaels expands its experiential “Knit & Sew Shop” concept into Arkansas, aiming to make fabric shopping more hands-on with swatch bars and QR ordering. Circular Textiles & Repair: Global brands are treating garment repair as a loyalty strategy as Gen Z leans into resale and thrift; meanwhile, a new bath mat made from old clothes and reused yarn highlights how households can divert textile waste. Policy & Compliance: India’s NGT formed a committee to investigate environmental violations by industrial units in Haryana’s Bahadurgarh estate, including textile-related operations. Trade Shock Read: A tariff-incidence analysis argues foreign exporters absorbed much of the 2025 US tariff hit, limiting consumer price spikes—important context for apparel and textile exporters. Industrial Finance: Africa Finance Corporation led a $2.5bn equity raise for Dangote’s refinery expansion, signaling continued appetite for large-scale industrial projects tied to regional manufacturing growth.

Repair as retention: Levi’s, Uniqlo, Zara and Primark are pushing garment repair and skill-building to keep Gen Z in the brand loop as resale and thrift rise. Denim capacity play: Arvind Ltd is exploring leased, asset-light options to add denim capacity after volumes jumped 34% YoY to a 16-quarter high. Industrial fabric growth: Sanrhea Technical Textiles reported 59.6% YoY revenue growth in Q1 FY27, though profit eased sequentially. Bangladesh jute vs plastics: A jute mandate for key commodities is failing to stop plastic and synthetic packaging gains, despite some mills sticking to jute sacks. Handloom modernization: India’s Handloom Hackathon 2026 wrapped with 2,500+ participants and 280 finalists pitching tech for looms, design and weaver livelihoods. Safety shock in textiles: Two workers died in a fire at Ganesha Ecosphere’s polyester staple fibre plant in Warangal. Cambodia trade scrutiny: A US report flags Cambodia garment finishing as a possible route for China-linked transshipment. Market signals: India’s WPI eased to 9.78% in July, with fuel and power inflation cooling.

Handloom & Retail: India’s Union Textiles Minister Giriraj Singh will inaugurate the revamped “Handloom Haat: The Handloom Experience Centre” at Delhi’s Janpath on Aug 14, featuring 24 award-winning weavers and the “Weave The Future 5.0” showcase focused on sustainable, circular, craft-led textiles. Trade & Supply Chains: Pakistan’s transporters’ strike is now hitting textile exports hard, with TMA warning of container delays, higher logistics costs, demurrage/detention charges and possible order cancellations. Border Controls: U.S. CBP seized about 440 pounds of unprocessed cotton in traveler baggage at Dulles, citing seed-containing cotton as a prohibited pest-risk without USDA permits. Fashion Tech & Materials: Researchers report a bacteria-based method to grow cellulose textiles and dye them in multiple colors, aiming to cut toxic dyeing impacts. Industry Events: Cambodia’s machinery, textile & garment, and plastics fairs (Aug 13-16) open in Phnom Penh, pushing automation and smart manufacturing for competitiveness. Safety Alert: Two workers died in an accident at Kakatiya Mega Textile Park in Warangal after a suspected boiler-related incident trapped them in a lift.

Taiwan Forced-Labour Fallout: Taiwan’s textile sector still has a $2.3M recruitment-fee reimbursement gap for migrant workers, even after $4.4M was returned—Transparentem says repayments are uneven and some suppliers can’t be located. Workplace Safety: Two workers died after an electric short circuit trapped them in a lift at Kakatiya Mega Textile Park in Warangal, prompting a police investigation. Trade Pressure: India’s merchandise trade deficit hit a six-month high of $31.98B in July as Middle East conflict lifted oil import costs and freight rates, while electronics and gold imports rose. Policy for Growth: NITI Aayog points to chemicals and textiles (plus telecom gear and solar PV) as high-potential manufacturing sectors to boost India’s export-led push. Handloom Spotlight: MACCIA honored India’s weavers at “Weaves on the Runway,” backing “My Handloom, My Pride” to connect artisans with mainstream markets. Global Sourcing: Bangladesh will bring 17 companies to Texworld Apparel Sourcing Paris 2026, aiming to deepen its role in finished apparel and fabric supply chains.

Trade Pact Momentum: India and the Southern African Customs Union (SACU) signed Terms of Reference to start negotiations for a Preferential Trade Agreement, with textiles named among key sectors and talks aimed at concluding within a year. Handloom Education Push: India’s Union Textiles Minister Giriraj Singh inaugurated IIHT SUTRA 2026, a national conclave to strengthen handloom technical education, research and industry links. Textile Supply Chain Stress: Pakistan’s textile and hosiery exporters warned that a transporters’ strike has stranded about USD 500m in export containers, risking missed deadlines, demurrage and buyer penalties. Sourcing & Export Showcases: Texworld & Apparel Sourcing Paris returns Aug 31–Sep 1 with ~1,300 manufacturers, and TDAP will back Pakistani participation. Circularity & Waste: A report highlights how extreme heat may be accelerating plastic breakdown into microplastics people breathe and swallow, adding pressure on waste and materials policy. Community Textile Heritage: Zambia’s Mulungushi Textiles revival milestone and local linen/handloom heritage calls show how fabric production and memory are being mobilized for jobs and identity.

Digital manufacturing boost: UK sustainable clothing maker WAWWA tripled turnover and workforce after a Made Smarter-backed digital transformation, investing £120,000 in tech projects to modernise garment design and production. Trade talks for textiles and industry: India signed terms of reference with Southern African Customs Union (SACU) to launch negotiations for a preferential trade agreement, aiming for tariff relief across sectors that include industrial goods. Textile policy and jobs in India: Karnataka’s cabinet reshuffle put Rudrappa Manappa Lamani in charge of Sugar and Textiles, while Telangana’s Shriram Finance launched “Shri Sampark” to support garments and textiles with networking and capital access for 100+ companies. Sustainability and compliance: Hohenstein and OEKO-TEX® ran a 2026 roadshow in Bangladesh focused on PFAS, product safety, and responsible textile supply chains. Industry events: Intertextile Shanghai Home Textiles (Aug. 18–20) expects buyers from 72 countries, and Malaysia’s IPMEX (Aug. 12–15) spotlights textile printing alongside packaging and automation. Circular tech: Kornit Digital reported strong Q2 2026 results as it continues shifting fashion production toward digital, on-demand manufacturing.

Pakistan Textile Exports: A nationwide goods transporters’ strike has suspended cargo traffic, leaving textile exporters unable to meet shipment schedules and risking missed vessel cut-offs and contract disputes. Bangladesh Jute Revival: Bangladesh has signed leases to reopen three long-closed state jute mills with about Tk 619 crore investment, targeting 11,629 jobs and annual turnover of Tk 1,175 crore. RMG Environmental Compliance: Bangladesh’s environment minister urged practical, timely steps to meet international standards in readymade garment and textile pollution control, including ZLD, water reuse and stronger testing. AI for SMEs: Pakistan launched the Small Business Growth Academy with Meta, training 1,000+ SMEs across nine cities, with a focus on women-led firms in textiles and handicrafts. Circular Economy Push: Washington’s Snohomish County hosted a circular economy and industrial symbiosis forum aimed at turning resource pressures into new business opportunities. Textile Industry Policy: West Bengal held consultations with industrialists as it drafts a new industrial policy and incentive framework to restore jobs and attract investment. Luxury Interiors: Jaguar revealed the Type 01 electric GT interior, featuring a long central “spine” design—more luxury tech talk than textiles, but relevant to material and design trends.

EU Consumer Rules: Brussels set a deadline for harmonised EU guarantee labels at every point of sale for clothing and textiles, effective from 27 September, aiming to boost awareness of durability and legal guarantee rights. Textile Tech & Trade Shows: ITME Society will run ITME 2026 in Noida (Dec 4–9), with 18 halls and 1,800+ participants, spotlighting sustainability, digitalisation, automation and Industry 4.0 plus conferences and live demos. Materials & Circularity: RMIT researchers say cotton textile waste can be turned into organic compost via vermicomposting. PFAS-Free Shift: Niber secured $11m to scale PFAS-free electrospun membrane tech ahead of tightening EU and US restrictions. Fashion Retail Moves: Raymond Lifestyle targets Europe to reach 20–25% of exports within two years as it cuts US dependence after tariff disruptions. Brand/Collab Spotlight: Stitch Fix launched a limited-edition fall capsule with Favorite Daughter for school-season routines. Regional Industry Pulse: Vietnam’s textile and garment exports hit about $27.02bn in the first seven months of 2026, up 2.67%, with demand pushing more self-reliant supply chains.

Trade & Policy: Pakistan’s textile and hosiery exporters are warning that a nationwide goods transport strike could disrupt raw-material and container flows, delay shipments, and raise demurrage costs, urging governments to restart negotiations. Market Outlook: The State Bank of Pakistan flagged risks to FY27, including Middle East conflict-driven energy and freight costs, climate shocks, tariff uncertainty, and intensifying textiles competition. Regional Trade Deals: Bangladesh and South Korea signed a Comprehensive Economic Partnership Agreement (CEPA) on Aug. 4, aiming to turn post-LDC graduation market access into real export growth and supply-chain integration. Exports Watch: Vietnam reported July textile and garment exports at $4.7bn, with apparel up and upstream inputs (fiber/yarn, accessories) also rising. Industry Moves: Pakistan will take part in Intertextile Shanghai Apparel Fabrics and Yarn Expo Autumn 2026 with exhibitors and a focus on natural, bio-based and recycled solutions. Sustainability & Materials: Bluesign aligned PFAS limits with new standards, while MIT-linked research highlights a new all-polyethene stretch yarn approach for recycling. Health & Regulation: A UK “urgent health warning” targets silver-infused underwear over concerns about stubborn bacterial infections, as proposed rules could restrict silver in clothing.

Sustainability Tech: MIT researchers report a fully recyclable stretch yarn made from chemically identical polyethene components, aiming to cut the recycling dead-end caused by spandex blends. Retail Repair Culture: Levi’s is expanding its “Wear Longer” in-store handstitching and repair push to help Gen Z keep clothes in use longer, with Uniqlo and Primark also leaning into mending services. Compliance & Traceability: Fashion brands are turning to AI to map complex supplier networks as regulators demand product and supply-chain documentation, including environmental and labor risk data. Bangladesh Industry Moves: Pahartoli Textiles’ Production Unit-2 wins USGBC LEED Platinum for energy-efficient, solar-backed manufacturing, while Bangladesh’s textile bodies sign an MoU to launch BITMA, spotlighting automation, AI and sustainable fashion. Pakistan Export Pressure: A nationwide transporters’ strike threatens textile production and export shipments, with mills warning low cotton stocks could disrupt output. Regional Trade Talks: India and the SACU group are set to sign terms of reference for a preferential trade agreement on Aug 12, with textiles among key potential areas. Circular Water Innovation: Researchers convert rice husks into dye-removing filters to tackle textile wastewater pollution.

Textile Industry Pulse: ITMF’s 39th Global Textile Industry Survey shows weak demand and geopolitics still biting, with order intake down and capacity utilization slipping to 71%, while brands/retailers are the only segment showing a positive balance. Pakistan Cotton & Exports: Cotton prices stayed largely stable, but stakeholders flagged rising contamination and trash issues; industry also urged action over an indefinite goods transport strike that threatens export shipments and mill operations. Trade & Policy Pressure: WTO/UNCTAD updates point to resilient but more unstable trade as tariffs and geo-risk disrupt supply chains; for Pakistan, the push is export diversification beyond textiles-only dependence. Sustainability Moves: Pahartoli Textiles (Bangladesh) earned LEED Platinum for energy-efficient, solar-backed production; a Florida-led study turned rice husks into reusable filters to remove synthetic textile dyes from water. Regional Market Access: Bangladesh is preparing EU FTA talks and pursuing RCEP; meanwhile, Gujarat leaders say FTAs can help Surat textiles compete globally. India Craft & Fashion: Shikha’s Kariigarii opened “Saree Shastra” in New Delhi, spotlighting sarees as power and canvas for regional art and makers. Supply Chain Disruption Watch: A transport strike in Pakistan is directly affecting imported cotton flow and local cotton movement to mills.

Sustainable Manufacturing Milestone: Bangladesh’s Pahartoli Textiles (Ispahani Group) says its Production Unit-2 has earned LEED Platinum for energy-efficient systems, solar power and greener operations. Footwear Materials Innovation: KARL MAYER highlights how spacer fabrics are reshaping athletic footwear performance and points to its new Textile Innovation Center as a hub for next-gen development. PFAS Alternatives Benchmarking: Fashion for Good launches Project DW(O)R-X to compare PFAS-free durable water/oil-repellent chemistries and push for clearer, real-world performance data. Circular Fashion Push: UNIQLO partners with Filipino artisan communities for Re.UNIQLO-made embroidered patches, turning recycled clothing scraps into new heritage-led designs. Textile Trade Risk: A US Senate-passed bill could enable up to 100% tariffs on countries buying Russian oil/gas, raising fresh uncertainty for India’s export-heavy sectors including textiles. Community Repair & Waste Cuts: A UK “Repair Hub” roadshow will take textile and accessory repair sessions to local villages, aiming to keep usable items out of landfill. Handloom & Craft Spotlight: India’s National Handloom Day coverage keeps momentum on weaver support, while a new handmade Independence Day invitation kit features eco-friendly craft work by artisans from Chhattisgarh and other states.

EU Digital Product Passport & compliance tech: Australia’s Kit Willow is launching an AI tool (Planet Price) to help fashion retailers meet Europe’s upcoming transparency rules, with product origin and environmental impact data required from late 2027. Pakistan export liquidity push: Pakistan’s Commerce Ministry sanctioned Rs10bn for textiles and apparel under duty drawback and technology upgradation schemes to boost cash flow and competitiveness. Pakistan EPZ circular-economy pressure: An IMF-linked condition to limit Export Processing Zone sales to the domestic market could disrupt recycling and charity supply chains tied to EPZ output. Bangladesh energy strain hits garments: Bangladesh’s textile sector is still running below capacity after LNG supply disruptions, with factories in key industrial belts reporting reduced output and gas-driven production pauses. Industrial expansion in Bangladesh: The government plans a new 400-acre industrial park in Bogura to meet SME demand, aiming to improve infrastructure, energy access, and financing costs. Handloom momentum in India: National Handloom Day coverage highlights government and political support for weavers, plus initiatives pushing tech, branding, and wider market access. Fashion & materials trends: Japan’s heat-proof fabric push is moving technical textiles into mainstream summer wear, while “unshrinking” laundry hacks are debunked as ineffective long-term.