The India–US trade deal, which lowers US tariffs on Indian products from 50 per cent to 18 per cent, is being seen by textile industry leaders as a decisive inflection point that restores competitiveness, revives stalled orders and strengthens India’s long-term manufacturing and export prospects.

Rajeev Gupta, Joint Managing Director, RSWM Limited, said the tariff reset gives India a clear pricing edge. “The sharp reduction from 50 per cent to 18 per cent provides India with a 2 per cent cost advantage over competitors such as Bangladesh and Vietnam, significantly strengthening global competitiveness,” he said. Gupta noted that delayed US orders, which account for nearly 28 per cent of India’s textile exports, are already seeing signs of revival. “Combined with internal duty exemptions and a Budget that meaningfully strengthens domestic value chains, the timing is ideal to accelerate exports, support MSME employment and improve margins in the coming quarters,” he added.

The India–US tariff reset sharply improves India’s price competitiveness in the US market, triggering early signs of order revival and exporter confidence.
Combined with the EU deal and Budget support, it creates a rare alignment for export-led growth.
Real gains will hinge on rapid capacity expansion, productivity gains, and stronger ESG compliance.

Offering a broader industry view, Dr Rajesh Bheda, Managing Director of consulting firm RBC, said the announcement has lifted exporter morale after months of pressure. “This is a much-needed and long-awaited relief for textile and apparel exporters, many of whom absorbed losses over the last six months to retain US customers,” he said. However, he quickly added that clarity will emerge once the US executive order and fine print are released. Bheda said the industry has received three strong positive signals within days—the India–EU deal, Budget support for textiles, and now the India–US trade agreement. He stressed that to fully capitalise on these opportunities, manufacturers must rapidly expand capacity, improve speed to market, adopt digital and smart manufacturing, enhance productivity and strengthen ESG compliance.

From a sustainability and brand perspective, Avani K Chandran of House of Ara said the trade deal is particularly positive for value-added textiles. “Improved market access will allow Indian brands and manufacturers to showcase craftsmanship globally, while encouraging stronger compliance, transparency and long-term trade partnerships,” she said.

The agreement is also expected to unlock investments in large manufacturing ecosystems. Dharani Kanth Koganti, Director of Kakatiya Mega Textile Park (KMTP), said the 18 per cent tariff, combined with the EU FTA, removes prolonged uncertainty for investors. “This is the ultimate unlock for the PM MITRA vision. While policy created capacity, this deal provides the global competitiveness needed to fill it,” he said, adding that Telangana, as the first state with an operational PM MITRA ecosystem, stands to benefit immediately.

Textile producers echoed similar optimism. Gautam Ganeriwal, Executive Director, Sitaram Spinners Pvt Ltd, said lower US tariffs and efforts to address raw material competitiveness can create a win-win outcome. “A more open and predictable trade environment will revive demand, improve supply chain confidence and support employment across the textile value chain,” he said.

From the fabric segment, Suketu Shah, CEO, Vishal Fabrics Ltd, said the agreement restores India’s standing in the US market. “The reduction of tariffs to 18 per cent makes India more competitive, especially in manufacturing. The deal opens opportunities for diversification and faster scale-up, though the impact will depend on implementation speed and cost management,” he said.

Fibre2Fashion News Desk (KUL)

US cotton export sales rebounded in the week ended January 29, 2026, recovering from the prior slowdown, while shipment volumes eased from the previous marketing-year peak but remained firm versus recent averages. This reflects selective new buying alongside steady execution of existing contracts.

According to the weekly US cotton export sales report released by the US Department of Agriculture (USDA), net Upland cotton sales for the 2025–26 marketing year rose to 249,800 running bales (RB), each weighing 226.8 kg (500 pounds). This marked a 23 per cent increase from the previous week, though sales were 5 per cent below the prior four-week average.

US cotton export sales rebounded on renewed Upland demand, led by Vietnam, Pakistan and China, while forward bookings signalled cautious confidence in next-season coverage.
Shipments eased from peak levels but stayed well above recent averages, reflecting steady contract execution.
Pima cotton remained weak, underscoring divergent demand across fibre segments.

Vietnam emerged as the largest buyer with net purchases of 54,000 RB, followed by Pakistan (48,100 RB), China (36,600 RB), Turkiye (32,800 RB) and Bangladesh (31,800 RB). These gains were partially offset by modest reductions from South Korea.

Forward sales for the 2026–27 season strengthened sharply, with net sales jumping to 114,900 RB, compared with minimal volumes a week earlier. Malaysia led next-season bookings with 52,800 RB, followed by Indonesia (33,400 RB), Mexico and Nicaragua (8,800 RB each), and Turkiye (6,600 RB), signalling improved confidence in forward coverage.

Shipment activity softened from the prior week’s marketing-year high. Upland cotton exports declined 9 per cent week on week to 235,300 RB, though shipments remained 25 per cent above the four-week average. Vietnam remained the top destination with 84,300 RB, followed by Pakistan (29,100 RB), Bangladesh (19,500 RB), Turkiye (17,600 RB) and China (16,000 RB).

Outstanding Upland sales stood at 3.98 million RB, still significantly below the 5.20 million RB recorded a year earlier, indicating leaner forward order coverage despite accumulated exports rising to 3.82 million RB, ahead of last season’s pace.

The Pima cotton segment weakened notably. Net Pima sales for 2025–26 fell to 3,200 RB, down 87 per cent from the previous week and 79 per cent below the four-week average, with limited buying from Costa Rica, Djibouti, Thailand, Bangladesh and India. Pima shipments declined to a marketing-year low of 2,300 RB, down 48 per cent week on week, with exports mainly to China, Colombia, Thailand and India.

Overall, the latest data indicate a recovery in US cotton export sales driven by renewed Upland demand and stronger forward bookings, even as shipments moderated from record levels. However, lower outstanding sales compared with last year suggest global mills remain cautious about extending coverage amid price volatility and uncertain downstream demand.

Fibre2Fashion News Desk (KUL)

The mainland China personal luxury goods market contracted by 3–5 per cent in 2025, a significant moderation compared with the sharp decline seen in 2024, according to Bain & Company’s China Personal Luxury Report. While consumer confidence remained cautious for much of the year, the market showed early signs of recovery in the third quarter of the year, supported by favourable base effects – when comparing H2 2025 with the same period in 2024 – alongside a more robust stock market and a gradual improvement in sentiment.

The report finds that 2025 marked a year of recalibration for China’s luxury market, as consumers became more selective and prioritised value driven luxury items that balance quality, exclusivity and practicality. Experience-based consumption, including travel and wellness, continued to be favoured, reflecting an ongoing preference for emotional and sensory experiences over material goods.

“After the turbulence of 2024, the market in 2025 began to stabilize, although consumer confidence remained fragile,” said Bruno Lannes, senior partner at Bain & Company. “What we are seeing is not a broad-based rebound, but the start of a recalibration phase, with early signs of recovery emerging in the second half of the year. This recalibration is also segment specific, with the Very Important Clients continuing to represent a large share of the market, while younger aspiring consumers have delayed entry into the luxury category.”

Luxury market performance varied significantly by category. Beauty emerged as the strongest performer, rebounding to 4–7 per cent growth, driven by steady demand for ultra-premium skincare and fragrances as consumers continued to seek emotional and sensory experiences even amid economic uncertainty. Other categories remained under pressure.

Fashion declined by 5–8 per cent, outperforming leather goods which declined 8–11 per cent – reflecting past and ongoing price increases and limited innovation, which made it difficult for consumers to justify purchases.

“In a more selective market, category dynamics and brand fundamentals are becoming increasingly decisive,” said Priscilla Dell’Orto, partner at Bain & Company. “Brands that maintain strong desirability and deliver clear value through innovation and targeted pricing strategies are proving more resilient.”

In contrast to 2023 and 2024, the share of overseas luxury spending declined sharply in 2025. Bain estimates that 65 per cent of Chinese luxury consumption occurred within mainland China, while 35 per cent took place outside, reflecting a renewed degree of consumption repatriation.

This shift was driven in part by low currency and narrowed price gaps between mainland China and key luxury markets, largely resulting from exchange-rate movements, which reduced the incentive for overseas shopping. Domestic tourism growth and ongoing shopping mall promotions further supported mainland consumption, despite the continued recovery of outbound travel.

Daigou activity stayed high in 2025 but showed signs of structural slowdown as brands stepped up efforts to curb gray-market sales and protect pricing in China. Sales among the top 45 brands tracked by Re-Hub grew 3 per cent in 2025, down from 5 per cent in 2024, reflecting tighter control over overseas supply chains and unofficial channels.

At the same time, China’s second-hand luxury market continued to expand, growing by 15–20 per cent in 2025, while remaining underpenetrated at less than 10 per cent of the primary luxury market. Growth was supported by an increased supply of pre-owned goods, rising consumer acceptance – particularly among younger and more price-sensitive buyers – and the widespread adoption of live-streaming as a trusted channel for product verification and engagement.

“The second-hand market is becoming a more established and complementary pillar of China’s luxury ecosystem,” said Elle Yang, partner at Bain & Company. “Its continued growth reflects changing consumer mindsets as well as the increasing maturity of the overall market.”

The report also points to the continued growth of local Chinese luxury brands, especially in beauty and select personal luxury segments. These players are gaining market share through culturally resonant designs, digital-first and engagement-driven consumer strategies, and competitive pricing supported by strong local supply chains.

As competition intensifies in a low-growth environment, the gap between winners and laggards is widening, with consumers consolidating their spending toward a smaller number of preferred brands that deliver perceived ‘true value’.

Fibre2Fashion News Desk (RR)