Textile Industry News & Updates | Latest Market Trends | 25 Sept 2024

1. Bengal Set to Receive Textile Cluster Following Modi-Biden Trade Talks

Kolkata: West Bengal is poised to benefit from a new textile cluster as part of trade discussions held between Prime Minister Narendra Modi and U.S. President Joe Biden. This initiative is part of India's plan to establish 75 textile clusters across the country to enhance export capabilities. The recent MoU signed between the Ministry of Micro, Small and Medium Enterprises and the U.S. Small Business Administration emphasizes the importance of fostering collaboration between small and medium-sized enterprises in both countries, focusing on trade and export finance, technology, and the green economy. Experts view this initiative as a strategic move to strengthen India's trade with the U.S. and reduce its trade deficit with China. The Union government aims to increase India's textile market value from the current ₹10 lakh crore to over ₹20 lakh crore within the next five years. This growth will be supported by the establishment of multiple production units, with the Ministry of Commerce and Industry serving as the nodal agency for this initiative.

2. Pakistan and Belarus Sign MoU in the Textile Sector at the 7th Session of JMC

Islamabad: Pakistan and Belarus have strengthened their textile sector ties by signing a memorandum of understanding (MoU) at the 7th Session of the Pakistan-Belarus Joint Ministerial Commission (JMC) held in Islamabad. The session was hosted by Pakistan’s Ministry of Economic Affairs, with Jam Kamal Khan representing Pakistan and Aleksei Kushnarenko, the Belarusian Minister for Energy, representing Belarus. The MoU aims to enhance cooperation in trade and investment in sectors such as textiles, heavy machinery, agriculture, and automobiles. Both sides discussed opportunities for trade diversification, emphasizing the potential for growth in textiles. The collaboration between Pakistan and Belarus signifies an important step towards bolstering textile trade between the two countries.

3. Indian Home Textile Industry Forecasted to Grow 8-10% in FY25 Amid Global Recovery

The Indian home textile industry is set for a resurgence, with sales expected to grow by 8-10% in FY25, driven by rising per capita income, urbanization, a booming real estate market, and increased hygiene awareness post-COVID-19. As per CareEdge Ratings, the global home textile market is projected to reach USD 134 billion in 2024, growing at a CAGR of 5-5.5%, with China leading the market. Despite challenges in FY23, such as high cotton prices and elevated freight costs, India’s textile exports have shown signs of recovery, especially in the U.S. market. The industry is expected to sustain an operating margin of 14-15% in FY25, supported by stable raw material prices and growing demand from major markets. India's strategic focus on sustainable and eco-friendly products, along with the China+1 strategy, offers opportunities for Indian exporters to expand their market presence.

4. CITI-CDRA and Beetle Regen Join Forces to Revolutionize Cotton Farming with Regenerative Agriculture

The Confederation of Indian Textile Industry's (CITI) Cotton Development and Research Association (CDRA) has partnered with Beetle Regen Solutions to promote regenerative agriculture in Khargone, Madhya Pradesh. This initiative aims to empower smallholder farmers with advanced agronomic practices, including high-density planting systems (HDPS) and biochar applications. The goal is to boost cotton yields, restore soil health, capture carbon, and align Indian cotton farming with global sustainability efforts. This transformative approach aims to enhance farmers' livelihoods, improve cotton quality, and contribute to climate solutions. The partnership marks a significant step toward establishing Indian cotton farming as a leader in regenerative agriculture, combining environmental sustainability with economic empowerment. Rakesh Mehra, Chairman of CITI, highlighted the initiative’s potential to make cotton farming both sustainable and transformative, providing better incomes for farmers while contributing to environmental regeneration.

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