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India updates rules to clear FDI proposals within 12 weeks

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India updates rules to clear FDI proposals within 12 weeks



The Indian government will now clear all foreign direct investment (FDI) proposals within 12 weeks, according to the updated standard operating procedure (SOP) for processing such applications released recently by the department for promotion of industry and internal trade (DPIIT).

Up to 12 weeks’ time has been fixed for a decision on the proposals, excluding the time taken by applicants in removing deficiencies in the proposals or in supplying additional information as may be required by the competent authority, the Ministry Of Commerce & Industry said in a press release.

India has revised its FDI approval process, extending the decision timeline to 12 weeks from 10 weeks earlier under a new DPIIT framework.
Investments from neighbouring countries will require Ministry of External Affairs clearance.
The government also eased norms for firms with up to 10 per cent Chinese/Hong Kong shareholding and introduced 60-day fast-track approvals for a few sectors.

The last such SOP was issued on June 29, 2017. It had prescribed a maximum of 10 weeks for clearing such proposals.

As per the revised SOP, all applications will be forwarded to the Ministry of External Affairs for its comments and clearance on investments from countries sharing a land border with India and, in other cases, where necessary, within the stipulated time period.

Last month, the government eased FDI norms for foreign companies having a Chinese/Hong Kong shareholding of up to 10 per cent (or non-controlling stake), enabling them to invest in India under the automatic route, subject to applicable sectoral conditions and FDI caps.

Further, the government has decided to provide expedited clearance (within 60 days) for investors of these seven countries in specific sectors/activities. These sectors include polysilicon wafers and capital goods manufacturing.

In case of proposals involving total foreign equity inflow of more than ₹50 billion, the Cabinet Committee on Economic Affairs (CCEA) will take a decision.

Fibre2Fashion News Desk (DS)



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Brazil’s apparel imports double in 5 years, momentum persists

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Brazil’s apparel imports double in 5 years, momentum persists




Brazil’s apparel imports have more than doubled in five years, with 2026 maintaining strong momentum.
Q1 alone accounts for nearly one-third of 2025’s total, signalling potential record highs.
Growth is driven by resilient demand and rising import dependence, with a clear shift towards affordable, high-volume basics like T-shirts over premium segments.



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NYCEDC unveils $1.7 mn to boost local fashion manufacturing

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NYCEDC unveils .7 mn to boost local fashion manufacturing



The New York City Economic Development Corporation (NYCEDC) in partnership with the Council of Fashion Designers of America, Inc (CFDA), has announced the continuation of the Fashion Manufacturing Initiative (FMI) with the launch of a new Local Production Fund to support the city’s garment manufacturers. The Local Production Fund will support designers and garment manufacturers by strengthening relationships and driving local production order growth over a two-year time frame. The programme will provide credits for up to 21 local garment manufacturers that can be used for re-shoring production orders for up to 43 fashion designers over 2 years and up to 3 seasons.

The original Fashion Manufacturers Initiative (FMI) was created in 2013 to support New York City fashion manufacturers to modernise their equipment and facilities. In addition to the NYCEDC’s investment in the Local Production Fund, the programme is made possible by early industry support from Andrew Rosen, TWP, and the American Apparel & Footwear Association, with additional partners to be announced. From the programme’s launch until 2024, $6.7 million was invested across 220+ grants and workforce support programming impacting the work of 3,708 employees. The programme consisted of six core components: innovation grants, workforce development, programmes & collaborations, and a production database. For this next phase, the Local Production Fund is an optimal investment to double down on ensuring the historic garment manufacturing ecosystem can continue to call New York City home.

NYCEDC and CFDA launched a $1.7 million Local Production Fund under the Fashion Manufacturing Initiative to boost NYC garment manufacturing.
It will support 21 manufacturers and 43 designers over two years.
Building on $6.7 million invested since 2013, the programme aims to strengthen local production, jobs, and partnerships amid Midtown South redevelopment.

“The Fashion Manufacturing Initiative’s decade of impact, supporting over 3,500 New Yorkers, helped strengthen the foundation of New York City’s historic garment manufacturing industry while advancing a diverse local workforce,” said NYCEDC interim president & CEO Jeanny Pak. “Building on that growth, NYCEDC is proud to continue our partnership with CFDA through the new Local Production Fund, which will deepen collaboration between local designers and manufacturers, helping to drive production and ensure this vital industry continues to thrive in New York City.”

“At the CFDA, we are committed to supporting American designers not just creatively, but in building strong, sustainable businesses, and the Local Production Fund is a critical step in helping them access local manufacturing, build lasting partnerships, and grow within New York City,” said Council of Fashion Designers of America (CFDA) president Steven Kolb.

In August 2025, the New York City Council and City Hall adopted the Midtown South Mixed-Use (MSMX) Plan, advancing the transformation of 42 blocks in Midtown South into a 24/7 mixed-use neighbourhood by facilitating the creation of 9,500 new homes including 2,800 permanently affordable new units. In light of this historic opportunity, NYCEDC, in partnership with former NYC Councilmember Erik Bottcher, undertook a six-month engagement process in the MSMX area—including the historic Garment District—where businesses identified needs for programming and understanding of existing NYCEDC programmes, CFDA said in a press release.

NYCEDC created Midtown Made to promote existing programming that supports the MSMX area as the rezoning unfolds. NYCEDC will continue its partnership with CFDA to promote NYCEDC’s programmes for the fashion sector through webinars, newsletters, paid social media efforts and events, under the Midtown Made brand. Our partnership and promotion efforts will direct businesses to the new Midtown Made resource hub on NYCEDC’s website and continue the support for the manufacturers that make New York City’s Fashion industry hum day after day.

“The talent and expertise of New York City’s local manufacturing facilities is instrumental in fostering the growth of the next generation of American designers and helping them build their brands,” said Andrew Rosen. “The Fashion Manufacturing Initiative, and now the Local Production Fund, is investing in and supporting this vital ecosystem. I’m excited and proud to be part of the continuation of such an important mission—one that helps ensure garment manufacturing in New York City continues to thrive.”

“For generations, New York City’s fashion industry has been woven into the fabric of our economy, and the Local Production Fund is exactly the kind of investment we need to keep it strong. At a time when tariffs and global supply chain pressures are squeezing designers, manufacturers, and small businesses, supporting local production is critical to protecting good jobs and strengthening our workforce,” said Council member Virginia Maloney. “As Chair of the Council’s Committee on Economic Development, I’m proud to work closely with NYCEDC and CFDA on initiatives like this, alongside efforts like Midtown Made that are supporting businesses in the Garment District as Midtown South evolves. This $1.7 million investment sends a clear message: New York City stands behind its fashion industry and is committed to ensuring it has a future here.”

Fibre2Fashion News Desk (RR)



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India approves $595 mn cotton mission as supply tightens

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India approves 5 mn cotton mission as supply tightens



India has approved a ₹56.59 billion ($595.28 million) Mission for Cotton Productivity at a time when the domestic textile and apparel industry is battling sharp increases in cotton and yarn prices, tight raw material availability and aggressive yarn exports by spinning mills. The industry has once again demanded removal of the 11 per cent import duty on cotton as domestic prices surge in line with the global market.

The Union Cabinet chaired by Indian Prime Minister Narendra Modi approved the Mission for Cotton Productivity for the period 2026–27 to 2030–31 to address declining growth, productivity bottlenecks and quality concerns in India’s cotton sector.

India approved a $595 million cotton productivity mission for 2026-31 to boost yields, quality and self-sufficiency amid rising cotton and yarn prices, tight domestic supply, and higher exports.
The plan focuses on better seeds, modern farming, traceability and processing, targeting higher output, improved productivity, and stronger global competitiveness.

The move comes as cotton yarn prices in key textile hubs such as Tiruppur and Mumbai have climbed sharply in recent days after cotton prices rose by ₹2,000-3,000 per candy. Traders said spinning mills were forced to raise yarn prices to offset higher raw material costs, while domestic supply remained limited because mills were increasingly prioritising exports. According to trade sources, Indian spinning mills are currently exporting nearly 60 per cent of their cotton yarn production compared to around 30 per cent a few months ago, tightening availability in the domestic market.

Against this backdrop, the government’s cotton mission aims to strengthen long-term self-sufficiency and global competitiveness in the sector under the 5F vision—Farm to Fibre to Factory to Fashion to Foreign.

The mission will focus on development of high-yielding, climate-resilient and pest-resistant cotton seeds, along with expansion of modern cultivation techniques such as High-Density Planting System (HDPS), closer spacing, integrated cotton management, and promotion of Extra Long Staple (ELS) cotton.

The government also plans to improve cotton quality through capacity building and modernisation of ginning and processing factories, alongside adoption of best processing practices. Cotton testing infrastructure across the country will be upgraded with modern and accredited facilities to support standardised quality assessment and global benchmarking.

A major component of the programme will be strengthening branding and traceability initiatives under Kasturi Cotton Bharat to position Indian cotton as a premium and sustainable fibre in global markets.

The mission additionally seeks to empower farmers through digital integration of mandis, enabling transparent price discovery, direct market access, and better price realisation through e-platforms.

The programme also includes promotion of cotton waste recycling and circular economy practices, while supporting diversification into other natural fibres such as flax, ramie, sisal, milkweed, bamboo, and banana to complement cotton production and align India’s textile sector with evolving global demand trends.

The mission will be implemented jointly by the Ministry of Agriculture and Farmers Welfare and the Ministry of Textiles. It will involve 10 institutes of the Indian Council of Agricultural Research (ICAR), one institute under the Council for Scientific and Industrial Research (CSIR), and 10 centres of the All India Coordinated Research Project (AICRP) on Cotton operating across major cotton-growing states.

Initially, 140 districts across 14 states will be covered through collaboration between state agriculture departments and ICAR. Around 2,000 ginning and processing factories will also be brought under the programme.

The government aims to increase cotton production to 498 lakh bales of 170 kg each by 2031 and raise lint productivity from 440 kg per hectare to 755 kg per hectare. Around 3.2 million farmers are expected to benefit from the initiative.

The mission also targets reducing cotton trash content to below 2 per cent under Kasturi Cotton Bharat certification and traceability initiatives, reinforcing India’s ambition to build a cleaner, premium-quality and globally competitive cotton ecosystem.

Fibre2Fashion News Desk (KUL)



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