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Higher energy costs to slow India FY27 growth to 6.5%: ICRA

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Higher energy costs to slow India FY27 growth to 6.5%: ICRA



India’s gross domestic product (GDP) growth is expected to moderate to 6.5 per cent in fiscal 2026-27 (FY27) from the projected 7.5 per cent in FY26 owing to the adverse impact of elevated energy prices and concerns around energy availability, according to ICRA Ratings.

While trends in high frequency indicators for January-February 2026 appear favourable, the heightened uncertainty around the duration of the Middle East conflict casts a shadow on the near-term macroeconomic outlook for India amid high import dependency for items like crude oil, natural gas and fertilisers, it noted.

India’s FY27 GDP growth is likely to slow to 6.5 per cent from the projected 7.5 per cent in FY26 owing to the impact of higher energy prices and concerns around energy availability, ICRA Ratings said.
The heightened uncertainty around the duration of the Iran war casts a shadow on the near-term macroeconomic outlook for India.
If the conflict lasts longer, the adverse effects could widen across sectors.

If the conflict lasts for an extended period, the adverse implications of the same could widen across sectors, amid an uptick in input costs and the consequent impact on profitability of the India corporate sector.

Amid the projected uptrend in the consumer price index-based inflation in FY27 with risks tilted to the upside, ICRA Ratings expects an extended pause on the policy rates by the central bank’s monetary policy committee in the fiscal despite the anticipated softening in the GDP growth. However, it expects the Reserve Bank of India to continue to intervene on the liquidity front during FY27.

The available data for January–February FY2026 indicate a positive trend across most non-agricultural indicators, with the year-on-year performance of 12 out of 18 indicators improving compared to the third quarter of FY26, while the remaining six deteriorated.

Fibre2Fashion News Desk (DS)



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Georgia’s apparel imports expand as post-war spending strengthens

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Georgia’s apparel imports expand as post-war spending strengthens



The country imported apparel worth $**.*** million during January-March ****, up **.* per cent from $**.*** million in the corresponding period of ****. The latest figures indicate that inbound apparel shipments have remained on a steady growth path since ****, according to *fashion.com/market-intelligence/texpro-textile-and-apparel/” target=”_blank”>sourcing intelligence tool TexPro.

The Russia-Ukraine war has had a significant economic impact on Georgia. The conflict triggered a large influx of Russian and Ukrainian migrants, which initially acted as an economic boon for the country. It fuelled rapid growth, lifted consumer spending, and increased demand for housing, services, textiles, and apparel. However, the war also deepened geopolitical polarisation and accelerated Georgia’s economic and energy reliance on Moscow.



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US Upland cotton sales rebound after steep decline: USDA

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US Upland cotton sales rebound after steep decline: USDA



US cotton export sales rebounded strongly in the week ended May 14, 2026, with Upland cotton sales rising noticeably from the previous week’s marketing-year low, according to the US Department of Agriculture weekly export sales report.

Net sales of Upland cotton for the 2025–26 marketing year totalled 131,800 RB (running bales, each weighing 226.8 kg), up sharply from 47,700 RB in the previous week and 16 per cent higher than the prior four-week average. The recovery followed a steep decline in the week ending May 7 when sales had fallen 61 per cent week-on-week and 66 per cent below the four-week average.

US Upland cotton export sales rebounded to 131,800 RB in the week ending May 14, 2026, after the previous week’s sharp fall.
Pakistan led buying, followed by Vietnam and Turkiye, while new-crop sales surged to 216,000 RB.
Shipments stayed below the recent average.
Pima sales improved slightly but remained weak, with India the top buyer and destination.

Pakistan emerged as the largest buyer during the latest reporting week with purchases of 65,300 RB, including reductions of 200 RB. Vietnam followed with 26,100 RB, including 4,500 RB switched from China, 900 RB switched from South Korea, 100 RB switched from Japan, and reductions of 4,400 RB. Turkiye booked 20,100 RB, including reductions of 100 RB, while Malaysia purchased 5,300 RB and China 3,400 RB. These gains were partly offset by reductions of 1,100 RB for Peru and 900 RB for South Korea.

New crop Upland sales for the 2026–27 marketing year rose sharply to 216,000 RB, compared with 29,700 RB in the previous week. Pakistan accounted for the bulk of new crop sales with 206,100 RB, followed by Indonesia and Turkiye at 4,500 RB each, and Mexico at 900 RB.

Upland export shipments remained broadly steady during the week. Exports totalled 289,400 RB, unchanged from the previous week but 11 per cent below the prior four-week average. Vietnam remained the leading destination with 110,800 RB, followed by Turkiye at 28,700 RB, Pakistan at 26,000 RB, Mexico at 22,100 RB, and Bangladesh at 21,200 RB.

Pima cotton sales showed a marginal weekly improvement but remained well below recent average levels. Net sales for the 2025–26 marketing year totalled 9,500 RB, up 2 per cent from the previous week but 52 per cent below the prior four-week average. India remained the largest buyer with 7,600 RB, followed by Pakistan at 1,100 RB, Peru at 500 RB, Thailand at 200 RB, and Vietnam at 100 RB.

New crop Pima sales for the 2026–27 marketing year stood at 7,700 RB, slightly below 7,900 RB in the previous week. Sales were reported for Peru at 4,000 RB and India at 3,700 RB.

Pima export shipments declined further during the week. Exports totalled 9,900 RB, down 18 per cent from the previous week and 19 per cent below the prior four-week average. India was the top destination with 4,600 RB, followed by China at 3,200 RB, Costa Rica at 1,700 RB, Pakistan at 300 RB, and Mexico at 100 RB.

Overall, the latest USDA data indicate a recovery in US Upland cotton export sales after the previous week’s sharp fall, supported mainly by strong buying from Pakistan, Vietnam, and Turkiye. However, export shipments remained below the recent average, while Pima demand continued to show weakness despite India’s sustained buying interest.

Fibre2Fashion News Desk (KUL)



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Bangladesh garment sector distant from renewable energy target: Study

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Bangladesh garment sector distant from renewable energy target: Study



Readymade garment (RMG) units in Bangladesh are quite away from meeting clean energy consumption targets owing to high renewable energy costs, limited rooftop space and policy bottlenecks that are slowing adoption across the sector, a recent study revealed.

Though the European Union (EU) Corporate Sustainability Due Diligence Directive (CSDDD), which came into effect last year, requires RMG factories in the country to generate 35 per cent of their power from renewable energy sources by 2035 for smooth Western exports, just 3 per cent of electricity used by Bangladesh RMG factories comes from renewable sources now, according to the study conducted by Mapped in Bangladesh (MiB), an initiative of the Centre for Entrepreneurship Development (CED) at BRAC University.

Bangladesh garment units are quite far from meeting clean energy consumption targets due to high renewable energy costs, limited rooftop space, and policy bottlenecks that are slowing adoption across the sector, a study revealed.
Eighty-eight per cent of respondents cited high installation costs as a barrier to renewable energy adoption, while 42 per cent pointed to high maintenance costs.

The country’s RMG sector remains heavily dependent on conventional energy despite the 2035 deadline, with 61.5 per cent of used energy coming from the national grid and 35.5 per cent from captive generation.

Eighty-eight per cent of respondents cited high installation costs as a barrier to renewable energy adoption, while 42 per cent pointed to high maintenance costs.

Twenty-eight per cent of respondents said a lack of awareness was a factor, while 16 per cent blamed unfavourable policies. Fourteen per cent cited limited space in smaller factories.

At 0.9 per cent, renewable energy adoption is significantly lower in Narayanganj compared with 3.6 per cent in Gazipur, domestic media outlets reported citing the study.

As Bangladesh is moving towards a more ambitious renewable energy transition through the Renewable Energy Policy 2025 and updated climate commitments, the RMG sector is central to this, given its high electricity consumption and importance to export earnings and industrial growth, the study noted.

Around four-fifths of RMG factories receive less than 1 per cent of their total energy from renewable sources, while only 5 per cent source more than 10 per cent.

Larger factories show greater diversification in energy use, while small and mini factories remain heavily dependent on grid electricity. In these smaller units, renewable energy use remains below 1 per cent.

The study suggested setting up an RMG green finance window for solar and energy-efficient technologies, introducing energy grading for industrial equipment, and developing factory-level energy and carbon reporting systems.

It also recommended using carbon credits and carbon exchanges to finance verified emission reductions, forming an RMG energy transition taskforce and creating an independent monitoring body to track progress.

The study was conducted through a survey of 878 factories in Gazipur and Narayanganj.

Fibre2Fashion News Desk (DS)



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