Dr A. Sakthivel, Chairman of the Apparel Export Promotion Council, today met Shri Piyush Goyal, Hon’ble Union Minister of Commerce and Industry, Shri Shivraj Singh Chouhan, Hon’ble Union Minister of Agriculture and Farmers Welfare, and Shri Giriraj Singh, Hon’ble Union Minister of Textiles, along with a delegation from the apparel industry and submitted representations seeking reduction of import duty on cotton from the existing 11 per cent to 0 per cent.

During the discussions, the delegation highlighted the challenges being faced by the apparel and textile industry due to high cotton prices and rising input costs. The industry representatives emphasised that India has recently entered into several Free Trade Agreements, creating significant opportunities for growth in textile and apparel exports. However, competing apparel exporting nations are able to access cotton at internationally competitive prices, whereas Indian manufacturers continue to face higher raw material costs due to the prevailing import duty structure.

AEPC Welcomes ECLGS 5.0 Approval; Calls It Timely Relief for MSME Exporters

New Delhi, May 5, 2026: The Apparel Export Promotion Council (AEPC) has welcomed the Union Cabinet’s approval of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, announced under the leadership of Prime Minister Shri Narendra Modi, terming it a timely measure to support businesses amid the West Asia crisis.

AEPC Chairman Dr. A. Sakthivel said:

“ECLGS 5.0 will provide crucial liquidity support to MSME exporters, helping sustain production, protect jobs, and maintain supply chains during this challenging period. The 100% guarantee and zero fee will further ease credit access.”

Textile Output Dips on Oil Surge, Input Cost Pressure

India’s textile and apparel sector witnessed a sharp slowdown in March 2026 as escalating crude oil prices and rising raw material costs — triggered by the ongoing Iran conflict — severely impacted manufacturing activity across key textile categories.  

According to industry data, textile manufacturing contracted by 3.6% year-on-year, while apparel production plunged nearly 14.6%. Segments including readymade garments, blended fabrics, woven cotton fabrics and home textiles recorded significant declines amid mounting operational pressures.  

AEPC Welcomes India–New Zealand FTA.The Apparel Export Promotion Council (AEPC) has welcomed the signing of the India–New Zealand Free Trade Agreement (FTA), signed between India’s Hon’ble Commerce & Industry Minister (HCIM) Shri Piyush Goyal and Hon. Todd McClay, Minister for Trade and Investment, New Zealand, calling it a significant milestone that will unlock new growth opportunities for India’s textile and apparel sector.

AEPC Chairman Dr. A. Sakthivel said,“ This forward-looking agreement is a major boost for India’s apparel exporters. With 100% duty-free access to the New Zealand market, Indian products will gain immediate price competitiveness, particularly in labour-intensive segments such as garments and textiles. This will support higher export volumes, job creation, and growth of MSMEs across the value chain.”

Texprocil is organising a Webinar on Export bill regularization - Closure of shipping bill & payment in EDPMS in Collaboration with ICICI Bank.

This session will provide the following benefits to exporters :
Practical guidance on functioning of Export Data Processing and Monitoring System (EDPMS)
Step-by-step process for closure of shipping bills in a timely manner
Insights on export payment realization, including delays, short payments, and write-offs
Avoidance of penalties and issues related to overdue export bills.

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NITMA Welcomes Duty-Free PTA & MEG; Urges Correction of Decade-Long "Inverted Duty" Anomaly in India-ASEAN FTA.

The Northern India Textile Mills’ Association (NITMA) has hailed the Central Government’s landmark decision to eliminate Customs Duty on PTA and MEG until June 30, 2026.
While thanking the Hon'ble Prime Minister Narendra Modi Ji, Hon'ble Union Minister J.P. Nadda Ji and Hon'ble Minister for Textiles Giriraj Singh Ji for this vital relief amidst West Asian supply chain disruptions, NITMA President Sidharth Khanna emphasized that this window of support must be extended if global volatility persists to truly stabilize the Man-Made Fiber (MMF) sector.

Ushering in a new regime From Jail to Compliance

Ease of doing
Good news; India’s textile sector is likely to be on the cusp of a significant regulatory reset—one that signals a more practical and business-friendly approach for the industry. As indicated/intended in the policy update, the long-standing provision under the Textiles Committee Act that may lead to imprisonment of up to one year (in limited sense decriminalization) for exporting or selling textiles or textile machinery in violation of prescribed orders is proposed to be done away a step in the direction of ease of conducting businesses.

Feb., 2026 WPI Edges Up as much as 2.13%: Textile prices amongst the culprits

Textile Prices Stitch Inflation Higher
India’s wholesale inflation surprisingly inches up to 2.13% in February 2026, denoting a subtle but notable trend shift in price momentum (Notwithstanding; "World turned on its head" as US Iran war broke out on 28th Feb., 2026)—the inflation drivers are in part by rising costs in the textile segment. Though it has to be mentioned here that, While overall inflation remains within RBI manageable band, the upending signals anchored in upward risks to pressures building across supply chains, especially witnessed in areas such as raw materials and fabric processing.

India-Canada CEPA: An equalizer for India's textile exports
contextualizing the present situation; India's textile sector has long languished on account of  tariff hurdles in Canada, where competitors like Bangladesh and Vietnams of the world kept enjoying duty-free entry via preferential pacts, saddling/leaving Indian exporters with MFN duties up to 18% on key apparel lines (conventionally a big labour intensive sector in India). This inherent disadvantage knocks out price competitiveness and, sadly limiting India's share despite supplying visibly 13% of Canada's home textiles merely at $254 million annually.

India-China Trade: Exports Surge Amid Deficit

India’s trade relationship with China has long been viewed through the lens of imbalance. China is India’s second-largest trading partner after the US; however, it accounts for just 35% of India’s overall trade deficit. In FY25, imports from China increased to $113.5 billion, marking an 88% increase over the past decade. In contrast, India’s exports to China grew to $14.3 billion in FY25, reflecting growth of only 19% over the same period.

However, newly released figures from the Department of Commerce for April to December 2025 signal a notable shift in momentum, particularly on the export front.

SCO-TUS to POTUS: US Tariffs Seesaw Tests Exporters

Living in a VUCA world: Uncertainty is in a new world
From Smiles to Uncertainty: Sudden US Tariff Shifts Rattle Indian Apparel Exporters

Perfect economic storm
“The 10% tariffs were good, we were all smiling, but then it changed within a few hours. This is temporary. We will get to know what happens when offices open (in the US on Monday),” said Jyoti Apparels MD HKL Magu, an industry veteran.