Apparels

Gold discounts in India remained stable due to high prices deterring buyers, further exacerbated by the rupee’s depreciation. In contrast, Chinese dealers raised premiums anticipating increased demand before the New Year. While Indian demand slackened, Chinese investment demand was expected to increase, buoying the market despite sluggish jewelry sales.

Bangladesh’s decision to hike valued-added tax on 43 goods and services will mostly target high-income people and will not lead to rise in prices of essential commodities, the country’s finance adviser Salehuddin Ahmed recently assured.
The products include posh garment outlets, mattresses and tissue papers.
The decision was taken to bolster state revenues and not to meet IMF demands, he said.

India-EU FTA could boost India’s apparel exports by reducing tariffs to zero, enhancing competitiveness particularly in non-knit items (HS Code 62).
Competitors like Bangladesh and China may lose market share.
India needs to improve product quality to counter EU’s non-tariff barriers.
The tenth round of India-EU FTA negotiations are likely in early 2025.

Discounting levels in India’s luggage market are unsustainable, affecting profitability, says Samsonite CEO. Samsonite surpassed VIP Industries in revenue last fiscal year. New entrants like Mokobara and Uppercase offer discounts impacting industry profits. Despite growth, VIP’s profits fell sharply. Samsonite reported a sales and profit increase. India’s luggage industry growth will reduce due to a high base and increased competition.

In 2024, Sri Lanka saw a 5.2 per cent increase in garment exports, reaching $4,244.3 million in the first eleven months, despite a 13.6 per cent decline in textile exports.
The overall industrial exports totalled $9,105.3 million, with textiles and garments comprising over half.
Imports of textiles and clothing also rose significantly during this period.

India’s textiles and apparel exports, including handicrafts, rose by 7 per cent to USD 21.35 billion from April-October FY 2024-25, led by Ready Made Garments. Imports in the sector declined slightly by 1 per cent in the same period. Cotton Textiles and Man-Made Textiles saw notable export increases.

Investment MoUs amounting to over Rs 18,500 crore have been signed for the seven PM MITRA Parks. The textile ministry has announced that infrastructure development has commenced, including the acquisition of 100% land and environmental clearances for several states. This initiative aims to bolster the textile industry’s contribution to India’s economy and exports.

India-EU FTA negotiations continue, promising benefits for Indian apparel exports, especially cotton products.
Potential trade creation could reach $161.14 million for cotton T-shirts alone.
EU consumers may gain $18.47 million in welfare.
While growth varies across EU markets, India must navigate challenges like cotton price volatility and competition.

Jewellers expect a significant growth in gold and silver demand by 2025, with gold potentially touching Rs 85,000 per 10 gm. Key drivers include rising awareness of sustainability, strong wedding demand, and geopolitical tensions. Despite price increases, India’s gems and jewellery market is anticipated to grow, driven by both local and global consumer demand.

India’s fashion industry is modernizing, blending tradition and innovation. It aims to capitalize on sustainability and global appeal. The collaboration between young designers and artisans is creating high-value products. The ready-to-wear segment and global luxury brands are expanding. Growing Tier 2 and 3 cities also drive growth. This landscape offers dynamic business opportunities.