Dear Readers,
West Asia continues to pose geopolitical and geoeconomic risks for businesses worldwide. The Indian textile and apparel sector is no exception, given the region’s importance as a major market for the industry.
The expectation, though, is that things will return to normal in West Asia soon. For our industry, however, the possibility of renewed challenges, whether raw material availability or supply chain disruption, is a concern we cannot ignore. While such developments are never welcome, we must be ready for every eventuality.
A similar or possibly higher level of readiness will be essential as we respond to developments in the US tariff regime. Beyond the Section 301 tariff itself, the proposed Tariff-Rate Quotas (TRQs) for competing sourcing destinations could place India’s textile and apparel exporters at a distinct competitive disadvantage by diverting sourcing orders away from India. The US decision on tariffs also creates reputational risks for an industry that operates under a robust legal framework and follows a zero-tolerance approach to forced labour.
I remain hopeful that the India-US trade deal will be in place in the not-too-distant future and provide us with a competitive edge vis-à-vis our closest competitors for capturing a higher market share of the overall US imports of textile and apparel items.
That said, Indian exporters must now move beyond a mindset focused primarily on making products cheaper to attract more buyers. The greater necessity is to lead product segments and become indispensable to clients. This calls for deeper investment in innovation and R&D, stronger ownership of intellectual property, and more robust after-sales relationships that make switching difficult for buyers. True market leadership creates leverage and provides the resilience needed to absorb tariff- and supply chain-related shocks.
This mindset will be important as the industry seeks to capitalise on new opportunities created by the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on July 15, as well as those that may emerge from the India-European Union Free Trade Agreement (FTA), expected to become operational by the coming year.
Simply falling back on the familiar strategy of undercutting competitors on price will only take us so far. A race-to-the-bottom pricing approach risks positioning Indian firms as commodity suppliers rather than strategic partners, while giving overseas customers greater leverage in negotiations.
As I have always maintained, greater market access facilitated by FTAs is a fantastic development. But enhanced market access does not automatically translate into a higher market share. The onus is still on businesses to make this possible.
It is with this objective of futureproofing India’s textile and apparel sector that CITI has continued to expand its global partnerships and industry initiatives.
CITI and the European Apparel and Textile Confederation (EURATEX) have established the India-EU Textile and Apparel Dialogue (TAD), a bilateral industry platform to support the effective implementation of the India–EU FTA. The initiative will provide a structured forum for industry engagement to promote reciprocal market access, resilient value chains, competitiveness and sustainable growth.
CITI has also partnered with the Social & Labor Convergence Program (SLCP) to help Indian manufacturers, particularly MSMEs, meet evolving sustainability expectations, strengthen responsible business practices and address human rights due diligence requirements.
CITI has signed an MoU with the International Cotton Advisory Committee (ICAC) and technology company Merago Inc. to develop carbon credit projects based on regenerative agricultural practices. The initiative is designed to advance sustainable cotton production in India, while enabling cotton farmers to earn additional income through carbon credit generation.
Reflecting our commitment to skill development and sustainability, Bharat Tex 2026 saw the launch of two self-paced learning courses developed by the International Labour Organization (ILO), with contributions from CITI. Covering textile waste recycling, circular economy practices and emerging technologies, these courses will equip the industry to meet evolving ESG and sustainability expectations.
In keeping with our advocacy of the Triple Bottom Line approach, CITI also hosted the Textile Sustainability Awards 2026 at Bharat Tex 2026, recognising outstanding contributions to sustainable manufacturing, responsible sourcing, resource efficiency, innovation and social impact across the textile value chain. The awards also included the CITI-BIRLA Economic & Textile Research Foundation Awards and a special recognition for exemplary municipal waste management.
We were honoured that Shri Pabitra Margherita, Hon’ble Union Minister of State for Textiles and External Affairs, graced the ceremony as Guest of Honour. The event brought together senior officials from the Ministry of Textiles, representatives of global industry bodies, UNIDO and leaders from across the textile sector. It also featured the Kasturi Fashion Showcase, “From Farm to Fashion”, curated by the Sardar Vallabhbhai Patel Institute of Textile Management.
On behalf of CITI, I extend my sincere gratitude to Shri Pabitra Margherita for his presence and encouraging remarks. I also thank the Ministry of Textiles, our industry partners and all the dignitaries who joined us and congratulate the award winners for their outstanding achievements.
In conclusion, I would like to reassure you that, as it has been doing all along, CITI will continue to put its best foot forward to ensure that India’s textile and apparel sector can
attain its highest potential. Ensuring a well-performing textile and apparel industry is a responsibility we take most seriously.
