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Trade in the New Global Era - Textiles by Dr. Seshadri Ramkumar

The excerpts from a presentation from Dr. Seshadri Ramkumar's insightful webinar on "Trade in the New Global Era with Reference to Textiles," held by NISTI on May 10, 2025.

In his presentation, Dr. Ramkumar predicted a likely reduction in US tariffs on Chinese imports, a foresight that has been confirmed by the recent announcement of tariffs being reduced to 30% following negotiations between the US and China.

This development highlights the dynamic nature of global trade and its significant implications for the textile industry, as discussed in the webinar.

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ITM

ITALIAN TEXTILE MACHINERY: ORDERS CONTINUE TO FALL IN FIRST QUARTER 2025

In the first quarter of 2025, orders for textile machinery recorded by ACIMIT, the Association of Italian Textile Machinery Manufacturers, showed a sharp decline compared to the same period in 2024, down 29%. The index stood at 41.8 points (base year 2021=100).

The negative result reflects both a significant contraction in the domestic market and a pronounced slowdown abroad. In Italy, orders dropped by 57%, while foreign orders fell by 25%. The index for foreign markets stood at 43.3 points, while the domestic figure dropped to 30.5 points. The order backlog at the end of the quarter ensured 3.6 months of production.

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India Set to Double UK RMG Market Share: CareEdge

 According to CareEdge Ratings, India is expected to double its market share from 6% in CY24 to 12% in the UK’s RMG imports, translating into an incremental annual export opportunity of around US$1.1-1.2 billion in the near to medium term.

The UK is among the top five RMG markets, with imports of around US$20 billion in CY24 (compared to US$24 billion in CY22). Currently, India holds a 6% market share in the UK's RMG imports, while Bangladesh, Turkey, Cambodia, Vietnam, and Italy enjoy duty-free access, giving them a 12% tariff advantage over India.

The India-UK FTA is a game changer for India’s RMG sector, creating a level playing field vis-à-vis key competing nations for accessing the nearly US$20 billion RMG market of the UK.

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Indo-UK FTA: Major boost for textile industry

USD 2119 million during 2024-25, mainly due to the tariff disadvantage. Dr. Sundararaman, chairman of SIMA, has said that in the total UK exports of textiles, ready-made garments of all textiles account for around 70%, and cotton yarn/fabrics/made-ups, handloom products, etc., account for around 15%.

He has stated that under the new FTA, the 10% to 12% tariff levied by the UK on Indian shirts, trousers, women’s dresses, and bedlinen and the 4% to 8% tariff levied on yarns and fabrics would become zero.

Dr. Sundararaman has stated that the India-UK FTA has given a new sigh of relief when the Indian textile industry is struggling with the slowdown in US exports due to the steep increase and uncertainties of US reciprocal tariff rates.

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