As land, labour, and operational costs continue to rise in India’s urban areas, apparel and textile companies are actively exploring cost-effective alternatives. This structural shift is steering investors’ focus toward rural and semi-urban regions with the potential to support large-scale manufacturing.

Bihar is gaining prominence as an apparel manufacturing hub, with its strategic location near key markets and an abundance of trainable labour driving investor interest.
Bihar’s Industrial Policy 2025 offers financial incentives and land allotments to attract investment.
Infrastructure projects, including the Eastern Freight Corridor, are enhancing connectivity and scalability for manufacturers.

Among the frontrunners in this evolving landscape is Bihar, an eastern state increasingly being seen as a credible, long-term hub for textile and apparel production.

Bihar’s comparative advantage lies in its vast pool of affordable, trainable labour and a growing support system of enabling policies, infrastructure upgrades, and availability of land for industries.

With manufacturing decentralisation becoming a dominant trend, the state’s strategic location near the key consumer markets of Delhi and Kolkata, as well as proximity to states like Uttar Pradesh, Jharkhand and the neighbouring country Nepal, further strengthens its appeal.

This proximity reduces transportation time and logistics costs, facilitating faster delivery.

Union Minister of State for Textiles and External Affairs, Pabitra Margherita, during a recent visit to Patna, emphasised Bihar’s potential to become a major centre for readymade garment manufacturing.

He pointed to increasing interest from leading apparel manufacturers, several of whom are now setting up production units in the state. Begusarai, in particular, has already seen the commencement of operations at a few such facilities, indicating early-stage traction.

Institutional partnerships are also playing a key role in building industry-ready human capital. One notable example in this direction is the signing of a Memorandum of Understanding (MoU) between NIFT Patna—operating under the Ministry of Textiles—and Aditya Birla Fashion and Retail Limited (ABFRL), one of India’s largest fashion conglomerates.

The partnership, formally announced in the presence of Union Minister of Textiles Giriraj Singh, is aimed at empowering rural women through targeted skill development and direct employment integration.

The collaboration will train members of self-help groups, popularly known as Jeevika Didis, in core garment manufacturing processes, quality control systems, and machine operations.

These training sessions will be conducted at NIFT Patna and its extension centres.

Once trained, these women will be eligible for employment at ABFRL’s upcoming manufacturing unit in Begusarai.

As per the Union Minister of Textiles, the programme is expected to benefit over 3.5 lakh women in its initial phase, with plans to extend coverage to adjoining districts.

This integrated approach—linking skill development to formal employment within a structured industrial framework—is a model that could reshape Bihar’s textile landscape. It not only addresses workforce readiness but also promotes women’s economic inclusion, a key enabler of sustainable industrial growth.

The momentum is not limited to training and pilot projects.

In an important step toward strengthening Bihar’s apparel manufacturing base, a new readymade garment unit has also reportedly been announced in the Bela Industrial Area, Phase 2 of Muzaffarpur.

Developed by M/s Gogreen Apparel Limited, the project reportedly entails a private investment of ₹23.36 crore, and upon completion, the facility will reportedly have an estimated annual production capacity of 5.5 million garments.

As per media reports, Bihar Deputy Chief Minister Samrat Choudhary confirmed that the unit falls within the textile and leather sector, which the state government has designated a high-priority industry under its recently approved Industrial Policy 2025.

The policy framework offers a comprehensive range of incentives—including capital subsidies, land allotments, tax exemptions, and dedicated support for skill development—intended to attract private investment and spur job creation.

He further emphasised that this unit represents a tangible step in Bihar’s broader industrial strategy. The goal is to position the state as a robust player in India’s textile manufacturing value chain while simultaneously enhancing its employment and economic growth metrics.

These efforts are being reinforced by investments in infrastructure and logistics designed to close existing gaps and prepare the state for scalable industrial activity.

While the outlook is positive, there remain some challenges nonetheless!

In several rural areas, unreliable electric supply poses a threat to production schedules while also raising the operational costs. Manufacturers are forced to rely on backup systems, which reduces cost competitiveness.

Limited warehousing facilities and last-mile connectivity also reportedly offer challenges, affecting supply chain reliability and turnaround times.

However, solutions are not that far. Infrastructure development is already underway, most notably through projects like the Eastern Freight Corridor, which is expected to significantly improve logistics.

This corridor will enhance connectivity with major ports and industrial centres, thereby enabling easier access to raw materials and reducing transportation delays for finished goods.

In parallel, the state government has reportedly taken proactive steps to allocate large tracts of land for industrial purposes, with a focus on textile parks and integrated garment clusters.

These developments are designed to accommodate modern factories and attract both domestic and foreign investors seeking cost-efficient and scalable production environments.

Several of these clusters are reportedly being designed with plug-and-play infrastructure, easing the entry barrier for manufacturers and reducing time-to-operations.

Bihar’s rising profile in the textile sector is also being aided by its competitive labour dynamics. The state’s large working-age population—most of whom are young, semi-skilled, and wage-competitive—represents a strategic advantage in an industry that remains highly labour-intensive.

This creates a workforce pipeline that can meet industry-specific demands with minimal lag.

The Bihar Industrial Investment Promotion Policy (BIIPP) has emerged as a critical growth enabler in this ecosystem. By offering targeted incentives tailored to the needs of manufacturing businesses, the policy aligns state support with market realities.

These include not only financial incentives but also institutional support, fast-tracked approvals, and sector-specific facilitation—key requirements for scaling operations quickly and sustainably.

Industry experts note that Bihar’s trajectory is timely. With global brands increasingly diversifying their sourcing strategies and India aiming to capture a larger share of the global textile market, non-traditional manufacturing destinations like Bihar stand to gain. The state’s potential lies in its ability to offer cost-effective and reliable production capacity by moving production away from congested and costlier hubs.

For exporters, manufacturers, and investors, Bihar today represents more than just a low-cost production base. It is a strategic growth opportunity—one that aligns with both domestic expansion and global supply chain realignment.

With proactive policy support, improving infrastructure, and deepening public-private collaboration, the state is setting the foundation for long-term industrial relevance in the textile and apparel sector.

While some infrastructure gaps and logistical challenges linger, Bihar is rapidly closing the gap between potential and performance and for an industry in transition, seeking scale, cost efficiency, and sustainability.

Fibre2Fashion News Desk (DR)

Following disruptions in the first half (H1) of fiscal 2024-25 (FY25), Bangladesh’s economy rebounded in H2 2025, backed by strong exports, record remittances and a rise in foreign exchange reserves, according to the World Bank’s (WB) latest update on the country.

The country is expected to maintain an upward growth trajectory in the medium term, but urgent reforms are critical to sustaining growth and job creation, especially for youth and women.

Bangladesh’s economy rebounded in H2 2025 after disruptions in H1, backed by exports, remittances and a rise in foreign exchange reserves, the World Bank said.
It may maintain an upward growth trajectory in the medium term, but urgent reforms are critical to sustaining growth and job creation.
GDP growth is projected to rise to 4.8 per cent in FY26 and 6.3 per cent in FY27 from 4 per cent in FY25.

The document projects gross domestic product (GDP) growth to rise to 4.8 per cent in FY26 from 4 per cent in FY25 and to reach 6.3 per cent in FY27.

External pressures eased in FY25 as a market-based exchange rate was adopted, foreign exchange reserves stabilised, the current account deficit narrowed and exports grew robustly.

Inflation moderated on the back of tight monetary policy, lower essential food import duties and strong harvests. However, the fiscal deficit widened amid weak tax revenue and higher subsidies and interest payments, the World Bank noted.

Poverty increased between 2023 and 2024, and labour force participation fell from 60.9 per cent to 58.9 per cent, with women disproportionately affected. Of the three million additional working-age people outside the labour force, 2.4 million were women.

“The economy has shown resilience, but this cannot be taken for granted,” said Jean Pesme, World Bank division director for Bangladesh and Bhutan.

‘To ensure a strong growth path and more and better jobs, Bangladesh needs bold reforms and faster implementation to address enhance domestic revenue mobilization, banking sector vulnerabilities, reduce energy subsidies, plan urbanization, and improve the investment climate,” he added.

The report calls for an urgent rethinking of spatial development strategies with a focus on reducing regional disparities as way of supporting inclusive job creation nationwide.

Fibre2Fashion News Desk (DS)

By launching its integrated Instant Checkout payment tool in the United States, ChatGPT (OpenAI) now allows users to purchase products directly within its platform. The move marks a significant milestone in how generative AI can reshape online shopping and challenge traditional search-engine-driven commerce models.

A user can describe to ChatGPT the product they want, include a budget, and receive a curated selection of items, all without leaving the platform. The system is built on the open-source Agentic Commerce Protocol, developed in collaboration with Stripe, enabling merchants to integrate it quickly. Merchants pay a “small commission” on each purchase, while the service is free for customers.

“For sellers, it’s a new way of reaching hundreds of millions of people while retaining full control of their payments, systems and customer relationships,” OpenAI explained, adding: “We are building out this protocol, with documentation available from today, to enable interested merchants and developers to begin creating integrations.”

While Etsy is the first platform involved, OpenAI said more than a million merchants on Shopify — as well as brands such as Glossier, Skims, Spanx and Vuori — will soon join the offering. On the technical side, ChatGPT is introducing a “multi-basket” feature to enable the simultaneous purchase of multiple products from different sellers.

OpenAI stated that product recommendations are based solely on relevance to a user’s query and are therefore “organic and unsponsored.” However, industry observers note that sponsored results could appear in the future.

Beyond the immediate retail implications, ChatGPT’s entry into e-commerce highlights a shift that challenges the dominance of traditional search engines. Google’s advertising-funded keyword model has long influenced both paid and organic search engine optimization (SEO) strategies across various industries.

Search engines and e-tailers on high alert

International studies over the past year have tracked a growing shift of users from search engines to conversational AI. According to the agency Innovating with AI, Google’s market share dropped below 90% for the first time since 2015. An AI Search Archetypes survey conducted in the spring reported that 43% of users now rely on AI daily for their searches.

Major technology players are responding in kind: Alphabet’s Google has rolled out Gemini; Microsoft is advancing Bing AI; Apple is evolving Siri into “Apple Intelligence”; and Samsung is investing in Galaxy AI. Retailers have also been integrating AI into their platforms to meet the rising expectations of consumers.

In fashion, Amazon, the largest clothing retailer in the United States, introduced Rufus a year ago, an AI tool that enables shoppers to find products by describing them in natural language. Europe’s leading online fashion retailer, Zalando, has launched its own AI-powered search assistant.

ChatGPT, which reports more than 700 million weekly active users, may become a new type of marketplace by combining conversational search with seamless checkout.