AGP Executive Report

Couture Innovation: Rimzim Dadu debuted INLAE at India Couture Week 2026, turning mother-of-pearl into a flexible, textile-like surface by embedding cut nacre pieces into bendable steel-wire textile structures. US Trade Shock: New Section 301 forced-labor tariffs took effect July 24, with importers now able to file refund claims; the move is already reshaping apparel sourcing and raising legal uncertainty. Bangladesh Capacity Push: Turkish Sanko plans a $300m integrated textile facility in Bangladesh’s Mirsarai zone to expand value-added fabric production for exports. Energy Strain Hits Textiles: Bangladesh’s worsening gas crisis is prompting moves to import LNG, including a floating LNG terminal proposal for Moheshkhali that could affect gas-dependent sectors like textiles. Policy Support in India: Maharashtra received Rs 167.51 crore investment approvals under the Textile PLI scheme, with 24 approved companies and 904 jobs reported. Machinery Pulse: Global textile machinery shipments weakened in 2025, with only spinning growing while weaving, knitting and texturing fell sharply. Market/Brand Signals: Coats PLC reported resilient H1 2026 results and maintained its outlook, citing gains in recycled thread. Local Craft & Fashion Platforms: Threads and Craft announced “Ananta Kriti” (Aug 26–28, New Delhi) to spotlight handcrafted textiles and artisans.

Textile policy & trade: Cambodia says the new U.S. 10% Section 301 tariff on textile and garment imports is applied with the MFN rate (not on top of the earlier 19%), while zero-tariff access for certain textile quantities is available for three years if U.S.-sourced raw materials are used. Forced-labor tariffs pressure supply chains: Pakistan’s SBP kept its policy rate at 11.5% as external risks rose with renewed Middle East conflict—an economic backdrop that matters for import costs and textile demand. Regional industrial revival: Nigeria’s Zamfara governor pledged to revive textiles, cotton ginneries and oil mills to create thousands of jobs, drawing lessons from Benin’s Glo-Djigbé industrial zone model. Cotton & jobs on the ground: Qatar Charity opened four cotton thread workshops in Mali for women’s cooperatives, aiming to boost local cotton value and create steady income. Design protection vs fast fashion: New Zealand brands are pushing for tougher enforcement after AliExpress and other offshore sellers used their images to sell lookalikes. Sustainability debate: A new study finds cow-derived leather’s climate impact is 70% higher than previously estimated, far above vegan alternatives. Craft & textiles culture: Mexico’s Tekit launched its guayabera expo, highlighting local mass-production shirt-making and artisan families.

US Tariff Shock for Textiles: The NCTO warned that USTR’s Section 301 forced-labour textile mechanism could hurt US textile makers and Western Hemisphere supply chains, with relief tied to imports of US cotton and textile inputs. India Cotton & Margins Under Pressure: Gujarat spinning is squeezed by shrinking cotton acreage, higher cotton and yarn prices, and limited ability to pass costs to buyers, all while Section 301 adds extra strain. Trade Policy Ripples: Multiple reports track how Section 301 tariff tiers and exemptions are reshaping apparel sourcing and competitiveness across Asia. Mega Textile Parks Watch: India is pushing “challenge mode” mega textile parks again, with several sites moving into roads, allottee bids, and PPP appraisal—after earlier targets missed. Circular & Bio-Innovation: Chinese researchers unveiled fungus-grown “living textiles” that can clean, regenerate damage, and biodegrade in weeks, pointing to circular fashion prototypes. Sustainability Regulation in Europe: Italy approved Textile EPR implementation, adding another compliance lever for brands and producers. Industry Business Moves: Wilsonart expanded its 2026 HPL collection with textile-inspired surfaces, while India’s Amarjothi Spinning reported FY26 profit and revenue declines.

US Forced-Labor Tariffs: The Trump administration’s Section 301 move hits 60 economies with 10%–12.5% duties, while a “textile mechanism” offers limited relief for apparel from Bangladesh, Cambodia, Indonesia and Malaysia—prompting strong pushback from U.S. textile groups worried it will hurt domestic makers. Trade Pressure on South Asia: India says it will keep negotiating with the U.S. after a lower 10% tariff tier, noting about 45% of exports get exemptions; meanwhile Bangladesh’s GSP+ risk is back in focus as Pakistan and business groups call for better coordination and faster reforms. Bangladesh Investment & Skills: FICCI flags nine linked barriers to raising Bangladesh’s FDI from $1.7bn to $15bn by 2030, including regulatory uncertainty, logistics costs, skills gaps and tax complexity; separate coverage spotlights AI as a strategic priority for RMG competitiveness. Innovation in Materials: Chinese researchers report “living textiles” made from fungus that can self-clean and biodegrade in 41 days, while a new AC electrospinning approach aims to scale nanofibrous yarn production. Industry Signals: Yarn Expo Autumn 2026 in Shanghai (Aug 25–27) will spotlight evolving yarn and fibre sourcing needs, and ITMF data shows global short-staple spinning capacity edging down in 2024. Handloom Policy Moves: India’s handloom sector gets election timelines and welfare support announcements in Andhra Pradesh, as cooperative and APCO elections are set to follow.

US Tariffs & Forced Labour: The Trump administration has imposed 10–12.5% Section 301 forced-labour tariffs on imports from 60+ countries as temporary 10% worldwide duties expire, with critics saying the move is more about replacing prior tariffs than enforcing labour bans. India-US Trade Relief: India says about 45% of its exports to the US stay outside the extra 10% duty thanks to exemptions, while the textile-specific mechanism is still pending. Jordan Apparel Advantage: Jordan’s industry minister says Jordanian clothing and textile exports now enter the US with full customs duty exemption under a reciprocal deal, aiming to boost exports and attract investment. Bangladesh Energy Pressure: Bangladesh’s gas supply remains tight after an FSRU fire in Cox’s Bazar, hitting Dhaka households and raising pressure on the wider economy. Myntra MSME Push: Myntra plans to onboard ~400 West Bengal sellers, spotlighting handloom clusters ahead of the festive season. Tiruppur Worker Housing: Tiruppur exporters urge Tamil Nadu’s industrial policy to include dorms and affordable housing for migrant garment workers. Sustainability Move: Sappi joins the ZDHC Foundation Roadmap to Zero to eliminate harmful chemicals across the fashion supply chain.

US forced-labour tariffs: India has secured a lower 10% additional duty under the US Section 301 regime, down from a proposed 12.5%, with the government saying about 45% of exports to the US stay exempt—though textile exporters still warn the fine print could hurt competitiveness. Trade talks: India says it will keep engaging the US to conclude an early bilateral trade deal, including sector-specific issues like textiles. Bangladesh RMG pressure: Bangladesh’s garment sector is facing fresh strain as a worsening gas crisis disrupts textile production, while analysts note the new US tariff tiers have given Bangladesh a 2.5-point edge over some rivals. Africa industrial push: Nigeria’s governors are studying Benin’s Glo-Djigbé Industrial Zone and Ethiopia’s model to build agro-processing hubs, with Vice President Shettima urging Africa to stop exporting raw materials and move up the value chain. Pakistan export drive: Pakistan set a $60b export target at Expo Faisalabad 2026, highlighting textiles as a key growth engine and pushing MSME support. Sustainability & policy: Morocco’s customs crackdown targets alleged smuggling of new clothing disguised as second-hand imports, while Bangladesh’s chambers call for a roadmap to strengthen chemical backward linkages to cut import dependence. Culture & craft: From Blaan weaving heritage in the Philippines to handloom innovation in India (a QR-code saree concept) and Malaysia’s Citrawarna 2026 showcasing traditional fashion, craft stories keep tying textiles to identity and modern markets.

US forced-labour tariffs on India: India says the U.S. cut the additional Section 301 duty on Indian imports to 10% (from 12.5%), with about 45% of exports exempt; the textile-specific mechanism is still not operational, but India will keep pushing talks tied to the proposed bilateral trade deal. Industry pushback: CITI warned the tariff could hurt India’s textile and apparel exports and flagged concerns about possible tariff-rate quotas that may shift sourcing away from India. Trade wins in the region: Jordan secured zero customs duties for garment and textile exports to the U.S. under a reciprocal agreement, while the Dominican Republic warned Trump’s differentiated tariff rates could reduce competitiveness and raise costs. Policy for inputs and capacity: India’s Cabinet approved the ₹3,030 crore BHAVYA-Rasayan scheme to set up three chemical parks—aimed at boosting chemical infrastructure that feeds textile processing. Local textile governance tensions: In Salem, Tamil Nadu, farmers and residents are seeking clarity after a new order says dyeing units won’t be allowed in an integrated textile park site. Women in textiles leadership: CII-IWN urged more women into leadership across manufacturing and textiles, citing Tamil Nadu’s large female workforce but gaps in R&D and digital strategy. Handloom spotlight: Andhra Pradesh will mark Pragada Kotayya’s birth anniversary as a state festival, highlighting his role in strengthening the handloom sector. Sustainability and circular fashion: Atlanta’s Scraplanta launched a Trashion Show using reclaimed and recycled materials to challenge fast-fashion waste.

US Forced-Labour Tariffs: The Trump administration’s new Section 301 duties took effect July 24, setting a 10% rate for some countries (including India at 10%) and 12.5% for others, with apparel and textiles among the biggest exposure areas. Bangladesh Advantage: Bangladesh secured the lowest 10% tier under the forced-labour measure, helping it defend competitiveness versus China, Vietnam and Thailand, while the USTR weighs a tariff-rate quota for select countries using US cotton. India Export Pressure: India’s textile lobby warned the tariff split could divert sourcing orders away from Indian suppliers, even as the rate is lower than the previously proposed 12.5%. Pakistan Garment Workers: A new report says major brands’ social audits in Pakistan are failing, with workers describing fear and retaliation that keep labor violations hidden. Nigeria Textile Push: Vice President Kashim Shettima toured Benin’s Glo-Djigbé Industrial Zone, arguing Africa must capture more value from cotton and revive Nigeria’s textile value chain to create jobs. Akwete Fabric Revival: Nigeria’s Akwete handwoven cloth is getting renewed government and private backing in Abia, aiming to scale production and commercialization. Carpet Export Support: Pakistan’s carpet makers met officials to seek policy help for export competitiveness amid supply-chain disruptions.

US forced-labour tariffs hit textiles: The US imposed a 10% Section 301 tariff on Indian goods tied to forced-labour enforcement, with CITI warning of reputational risk and a possible sourcing shift because some competitors get tariff-rate quotas. Tariff-rate quotas reshape sourcing: Under the same US move, Bangladesh, Cambodia, Indonesia and Malaysia qualify for 3-year TRQs that could let certain textile and apparel volumes enter duty-free, changing competitive dynamics. Malaysia gets the lower tier: Malaysia confirmed it will face a 10% rate (vs 12.5% for others) and said negotiations will continue if outcomes are unsatisfactory. Cambodia’s trade talks: Cambodia’s commerce minister said the country is discussing trade facilitation and customs modernization with the US ahead of its 2029 LDC graduation, alongside steps to strengthen forced-labour enforcement. EU due diligence pressure: Euratex urged the European Commission to make CSDDD guidance practical and harmonised so brands and suppliers don’t get stuck in red tape. PFAS crackdown with textile spillover: Sweden plans to ban “forever chemicals” in consumer products as early as 2028, with implications for treated textiles and everyday goods. Industry capacity & infrastructure: India’s Cabinet cleared the ₹3,030 crore BHAVYA Rasayan scheme for three chemical parks, aiming to boost chemicals supply that underpins textile processing. Trade & market signals: Intertextile Shanghai expands its home-textiles exhibitor lineup, while Hong Kong’s TDC will open an Egypt office to push textile-related market access into Africa.

Technical Textiles Expansion: Sanathan Textiles will double technical textiles yarn capacity at its Silvassa plant to 18,000 MTPA, with commissioning expected next month and commercial production in August. Policy Support for Innovation: India’s Ministry of Textiles has sanctioned 31 start-up projects under the GREAT scheme (Rs 15.40 crore total; Rs 13.65 crore government funding) for smart, functional, eco-friendly and medical technical textiles. Sustainability Reporting Push (Bangladesh): BGMEA and GRI signed a strategic partnership to strengthen sustainability transparency using GRI Standards under the ITSB initiative. Foreign Investment Momentum (Bangladesh): BIDA converted $400m+ from a $1.5bn pipeline into decision/implementation stages, including major garment and integrated textile projects, with expected job creation in the tens of thousands. Circularity at City Scale (India): ReFiber unveiled a Mumbai Textile Circular Economy Demonstration Project white paper at Bharat Tex 2026, reporting 2.7 tonnes collected and 275 collection orders. PFAS/Microplastics Tech: RMIT reported a new material removing over 95% of microplastics/nanoplastics and multiple pollutants in realistic wastewater testing. Market Signals (Cotton Yarn): North India cotton yarn demand improved in Ludhiana, pushing prices up as lifting and raw-material costs firmed.

Garment Sector Support: Bangladesh PM Tarique Rahman pledged full backing for the ready-made garment industry and ordered quick action to fix bottlenecks, with BGMEA flagging uninterrupted gas and power as top needs. Cotton Shock: Pakistan’s cotton output has fallen to about 6.85m bales (down from ~14m peak), costing the economy an estimated $2–3bn a year, as policy delays and pesticide bans hit supply. Trade Tensions: The US plans to announce new tariffs covering 60 countries, including India, under Section 301 forced-labour and “unfair trade” probes—raising pressure for labour-intensive sectors like textiles. EU Market Rules: The EU–India CETA enters force, cutting tariffs on 99% of Indian exports to the UK, including textiles, while the EU also moves ahead with its digital product passport registry. Waste & Compliance: Rajasthan’s Sanganer textile cluster is nearing full CETP coverage, with most units already connected and remaining links planned after a pumping station starts in August. Heritage & Craft: Nigeria’s first lady backed Akwete weaving with ₦2bn to boost indigenous cottage industries and jobs.

Bangladesh Textile Policy Push: Prime Minister Tarique Rahman has formed a high-level committee with the Finance Adviser and Commerce Minister to tackle long-running textile-sector problems, with BTMA urging support on gas and power supply, refinancing, and faster policy execution. Bangladesh Investment Approvals: ECNEC has approved eight development projects totaling Tk 14,041.21 crore, signaling continued state backing that can affect industrial capacity and inputs for textiles. India PLI Momentum: India’s PLI Scheme for Textiles has pulled in about Rs 8,117.64 crore and created 33,427 jobs (as of March 31, 2026), with Gujarat leading approved companies and investment. Corporate Value-Add Move: Gujarat’s Aastha Spintex plans to expand from yarn into value-added fabrics after acquiring Falcon Yarns, boosting spinning capacity to 17,457 MT and reporting a sizable order book. EU Compliance Pressure: California’s textile EPR law is headed to court as AAFA challenges CalRecycle’s choice of producer responsibility organisation, keeping extended producer responsibility in the spotlight. Craft & Livelihoods: Nigeria’s First Lady announced ₦2bn to revive Akwete weaving in Abia, while the Tarlac (Philippines) government launched a weaving revitalization effort for local weavers and crocheters.

EU Fashion Rules: The EU’s ban on destroying unsold clothing and footwear is now pushing brands toward verifiable tracking, with SMX pitching molecular marking plus Digital Material Passports to prove origin and recyclability. Textile Safety Recall: Madewell recalls two sweater styles (about 5,900 units) after potential flammability non-compliance, following a CPSC report of a sweater catching fire. Local Heritage Funding: Nigeria’s First Lady Oluremi Tinubu pledges ₦2bn for an Akwete weaving and research centre in Abia, aiming to preserve authenticity while scaling modern products. Export & Policy Push: India and North Macedonia flag “three Ts” (trade, technology, tourism) and target doubling bilateral trade by 2030, with textiles listed among India’s exports. Industry Finance: Trident Limited reports Q1 FY27 net profit up 13% YoY to ₹158 crore, supported by textiles and paper performance. Trade Shock Watch: Canada faces new 50% US tariff moves that include textiles among affected goods, adding pressure to sourcing plans. Tech for Circularity: Wool waste is being turned into antibacterial textile finishes, adding momentum to functional, reuse-focused materials.

EU Circularity Push: The EU’s Digital Product Passport registry and testing environment are now live, with textiles included under the Ecodesign for Sustainable Products rules—aimed at easier B2B compliance and better product transparency. Compliance Pressure: A new study warns garment factories in major sourcing hubs can’t yet generate the life-cycle data needed for textile DPPs, putting timelines at risk. Water & Waste Moves: Inditex reset tighter “Care for Water” limits for wet processes and also pledged about €6.5m (2026-28) with Conservation International to protect over 2m hectares of the Amazon. Tech for Textile Waste: Carbios says it has completed an industrial PET biorecycling demo (100 batches) and is now licensing the process to the textile market. Market Signals: Cotton and yarn trade in India stays steady with firm demand in Mumbai and Tiruppur, while China’s polyester prices jumped on feedstock cost pressure. Trade & Exports: Egypt’s apparel and home textile chamber plans a Kenya showroom and logistics hub to boost SME exports across East Africa. Policy & Growth: Bangladesh GDP growth slowed to 2.22% in Q3 FY26, with industrial contraction cited as a key drag.

EU Trade & Human Rights: The European Commission warned Pakistan that continued access to its GSP+ preferential trade scheme hinges on measurable human-rights and rule-of-law improvements, citing regressions and concerns over civil-society space. Circular Fashion Rule: The EU also moved to ban the destruction of unsold clothes and footwear, pushing brands toward resale or donation. Bangladesh RMG Tech Push: At the BAYLA Future Summit 2026, industry leaders urged faster AI and automation adoption and a shift to higher-value apparel as Bangladesh prepares for post-LDC competition. India Textile Growth Outlook: A report says India’s textile sector is entering a multi-year upcycle driven by China+1 and FTAs, but export gains will depend on productivity and execution. Textile Chemicals Expo: Colour & Chem Expo 2026 in Lahore drew 350+ exhibitors and signed major B2B deals, with digital textile printing also in focus. Solar for Textiles: Mafatlal Industries commissioned a 4 MWp captive solar project at its Nadiad unit to cut energy costs and emissions. Resale Goes Mainstream: Bain & Co. says secondhand apparel is now mainstream, with platforms like Vinted and ThredUp seeing strong growth.