The Confederation of Indian Textile Industry (CITI) has welcomed the launch of the Market Access Support (MAS) Intervention under the Export Promotion Mission (EPM) approved by the Union Cabinet earlier and feels that it could prove a big help to India’s textile and apparel exporters as they seek to venture into newer geographies.

“Coming on the back of the signing of the India-Oman trade pact and the conclusion of the FTA negotiations with New Zealand earlier in December, it’s one of the best news to end what has otherwise been a very challenging year for the textile and apparel sector,” CITI chairman Ashwin Chandran said.

CITI has welcomed the Market Access Support intervention under the Export Promotion Mission, saying it will help textile and apparel exporters expand into new markets.
CITI chairman Ashwin Chandran said the move complements recent trade pacts and diversification efforts, supporting export growth, job creation, and resilience despite 50 per cent US tariffs and global headwinds.

“With the trade deals already signed by India and those on the anvil opening new opportunities, the Market Access Support intervention will provide a fillip to textile and apparel exporters to expand their presence in more countries, which, by extension, will also have a positive ripple effect on the creation of more jobs and livelihood opportunities here,” the CITI chairman added.

Under the Market Access Support Intervention, structured financial and institutional support will be provided for activities including Buyer-Seller Meets (BSMs), participation in international trade fairs and exhibitions, Mega Reverse Buyer-Seller Meets (RBSMs) organised in India, and trade delegations to priority and emerging export markets.

In July, India signed the Comprehensive Economic and Trade Agreement with the United Kingdom. Talks are also ongoing on an FTA with the European Union, besides a Bilateral Trade Agreement with the United States.

The CITI chairman said the trade data for November 2025 has demonstrated the resilience of the Indian exporting community to hold its ground despite global headwinds. “November 2025 proved that the diversification strategy has started yielding results. The full benefits of the diversification strategy will be evident once all the measures under the Export Promotion Mission are rolled out,” he added.

India’s textile and apparel sector has been hit hard by the 50 per cent US tariff, effective August 27, 2025. The US is the single-largest market for India’s textile and apparel sector, contributing almost 28 per cent to the total revenue of India’s textile and apparel exporters. India’s textile and apparel exports to the US stood at nearly $11 billion in 2024-25.

India has set itself a target of creating a $350 billion textile and apparel industry by 2030, including achieving $100 billion of exports by that period.

Fibre2Fashion News Desk (KD)

In 2024, Turkiye had a trade worth $32.6 billion with the US, forming roughly 6 per cent of total Turkish exports. In June 2025, Turkiye achieved a negative trade balance with the US, with Turkish exports to the US totalling $1.2 billion and imports reaching $1.5 billion. Currently, bilateral trade between both NATO members is worth approximately $45 billion including services, and going forward, a goal of $100 billion has been set. The targeted $100 billion figure for bilateral trade points to new opportunities arising from geopolitical developments. Turkiye’s main exports to the US include vehicles, automotive parts, machinery, textiles & apparel, iron and steel products and mineral fuels such as petroleum.

International Trade

In the first eight months of 2025, exports to the EU, which accounts for 40.8 per cent of the Turkish textile industry’s market share, fell by 0.4 per cent to $3.09 billion y-o-y. Exports to the former eastern bloc countries, which ranked third, fell by 12.3 per cent. Europe accounts for over 70 per cent of Turkiye’s garment exports, thanks to the Customs Union. Turkiye provides fast overland shipping across Europe too. The country group with the highest export growth for the Turkish textile sector was Asia and Oceania. The increase rate, which was 26 per cent in value terms, rose to 40.5 per cent in unit terms. Meanwhile, exports to African countries rose by 19 per cent from $858.5 million to $1.02 billion, with growth rate being 24 per cent in unit terms. During this period, the topmost textile export destinations were the United States, Germany, and Italy, in that order. Over a period of 12 months, from September 2024 to August 2025, there was a 5.5 per cent decline in capacity utilisation rates in the textile industry.

Turkiye–US trade reached about $45 billion, with textiles and apparel emerging as a strategic opportunity amid relatively moderate US tariffs.
Despite export pressures in the EU and rising costs at home, Turkiye gained competitiveness against higher-tariff rivals in the US.
Carpets, in particular, stand out as a major advantage, supporting a cautiously positive export outlook.

The US Market

The US is an important export destination for Turkiye which can logistically deliver by ship to the US in under three weeks. Turkish textile & apparel exports’ current share of the US market remains under 3 per cent. In 2023, Turkiye textile exports reached $2.68 billion, and in 2024, the US ranked second in Turkiye’s textile and raw materials exports with a 6.8 per cent share. In early 2025, Turkish textiles exports rose 14 per cent y-o-y, and the US ranked third with 6 per cent share after Italy and Germany. Historically, the US was a significant market for Turkish garments until the expiration of the WTO’s Multi-Fibre Agreement in 2005, which led to a sharp drop in Turkish exports due to increased competition from Asia. Now, with around 40 per cent of the Turkish garment industry prepared to export to the US, encouraged by relatively lower tariffs, there is a renewed ambition to capture more of the market.

Textile & Apparel Sector

The textiles & apparel sector, one of Turkiye’s most globally competitive industries, employs 27.8 per cent of the country’s manufacturing labour force and contributes 15.2 per cent of manufacturing output. The country ranked world’s seventh-largest exporter of textile and ready-to-wear products last year. Within clothing exports, knitted apparel and accessories, such as T-shirts, pullovers, and similar items, dominate. This segment accounts for over half of the sector’s total value.

In a year burdened by tariff hikes, specifically between January–August 2025, Turkiye’s textile and apparel exports dropped from $18 billion to $17.2 billion, declining 4.4 per cent y-o-y. In this, textile and raw materials maintained a stable performance with a 0.8 per cent increase, reaching around $7.5 billion, while apparel and garment exports fell 8 per cent, from $10.5 billion to $9.7 billion. During this period, textiles and apparel accounted for 9.7 per cent of Turkiye’s total exports of $178.1 billion.

Moderate Tariff

On April 2, US imposed a minimum basic tariff of 10 per cent on all countries, including Turkiye, with its biggest competitors in the textile sector China, India, and Vietnam, subjected to higher tariffs of 34 per cent, 26 per cent and 46 per cent, respectively. However, in a notable shift, on April 9, a 90-day pause on tariff hikes for all countries except China was announced. While China’s tariffs were sharply increased to 125 per cent, Turkiye, being a non-retaliatory trade partner through July 2025, continued with the 10 per cent blanket tariff. Just ahead of August 1 deadline, tariff of Turkiye’s imports was raised to 15 per cent, described as moderate. The 15 per cent tariff reflected Turkiye’s ‘white list’ status, stemming from balanced bilateral trade and mutual investments with the US. The new tariff took effect on August 7.

The Turkish Ministry of Trade described 15 per cent duty as a positive differentiation despite the flagship export categories of textiles, apparel and carpets getting exposed to an increased risk of margin compression. On August 29, the US additionally eliminated the $800 de minimis threshold for imports, impacting Turkish e-commerce segment, especially D2C models. The D2C operators were made to build duties and taxes directly into checkout, rethink pricing and delivery strategies, and explore US-based logistics solutions such as warehouses and subsidiaries.

In another development, Turkiye terminated additional tariffs, imposed in 2018, on the US imports ranging from passenger cars to fruits. The terminated tariffs were imposed in retaliation for the US tariffs put during the first term of Trump in office.

Tariff Impact – a Mixed Bag

Turkiye previously exported to the US with very low tariff rates, including zero per cent for some goods. So, even a 10 per cent rate in April still made Turkiye’s exports to the US more expensive. Tariff on Turkish textiles rose from 4.92 per cent to 14.92 per cent. Increasing the tariff rate from 10 per cent to 15 per cent in August only intensified the impact. Additionally, domestic challenges, including rising input costs, inflationary pressures, and a volatile exchange rate, further impacted exporters’ profit margins. Exporters also remained wary of the indirect fallout, particularly through supply chains linked to the EU, underscoring the complex position the country occupied in a rapidly shifting global trade order. They struggled to compete against both lower-tariff competitors and US domestic producers. The textile sector also contended with structural challenges, including dependency on imported raw materials.

At the same time, it created some upsides. Since tariff was much lower than many textile-exporting nations, it enhanced Turkiye’s competitiveness in the US market, particularly in high-value segments of premium fabrics, apparel, and home textiles. Many Turkish officials and economists saw potential strategic gains amid the disruption. Turkiye’s relatively moderate rate offered a comparative advantage in select export sectors and attracted foreign manufacturers seeking more favourable trade conditions.

Brands Shifted Base

Due to political and economic developments in Turkiye, the increase in dollar exchange rate and costs put Turkiye at a disadvantage in production. This made major apparel brands shift their focus to far eastern countries. In September, outdoor clothing and gear brand The North Face shifted much of its production from Turkiye to Vietnam and Bangladesh due to rising prices. The US-based company decided to cut back orders by 80 per cent from Gelisim Tekstil, brand’s supplier for more than a decade. Out of 4 million units, only 400,000–500,000 remained with Turkiye. Consequently, Gelisim Tekstil, The North Face’s second-largest manufacturer worldwide and its largest in the EU, will see orders shrinking from €30 ($34.75) million to just €4–5 million. Not only the far east, but even Africa also emerged as a major competitor. A Turkish product costing €5.10 could be procured from Kenya for €2.80, attracting brands to outsource production there under the umbrella of social responsibility projects. While China is often seen as major rival for Turkiye, Bangladesh, Sri Lanka, Cambodia and Vietnam emerged even more formidable rivals.

Advantage Carpets

In 2024, the products with the highest trade surplus with the US included carpets and other textile floor coverings, with a valuation of $820 million. This puts Turkish carpets in a special league of products exported to the US. With US imposing 50 per cent tariff on Indian carpets, compared with 15 per cent on Turkish exports, carpet producers in Turkiye stand to gain. Steep tariff disparity between both countries created new prospects for Turkiye’s carpets. Demand for Turkiye’s carpets from the US buyers started increasing by September with further increase expected in the coming year. Carpet manufacturing companies geared up to develop new designs to replace products previously sourced from India, besides making plans for the summer 2026 season. In addition to trading with the US, companies planned to grow in Northern Europe, South America, the Middle East, and North Africa. Gaziantep, in southeastern Turkiye, is one of the world’s leading centres for carpet manufacturing. The city’s producers account for 65 per cent of global demand for machine-made carpets, with more than 200 firms and about 1,500 looms in operation.

A Positive Outlook

Turkish government and industry stakeholders are expected to double down on export promotion, trade diplomacy, and market diversification to fully capitalise on the changing global trade dynamics. The outlook with the new tariff showed that Turkiye can be an attractive candidate for globally renowned brands that have recently shifted their production from China to Vietnam in their search for new destinations. The US tariffs, originally intended to protect American industry, inadvertently elevated Turkiye’s position in the global textile supply chain. With a 15 per cent tariff rate, Turkiye enjoys an edge over its South Asian competitors and China, presenting itself as a viable alternative in the US supply chains. In this regard, Turkiye targets to replace products from these countries, which are expected to lose market share due to higher tariff. But at the same time, the moderate hike on Turkish imports presents challenges as well. Given the legal uncertainty around tariffs, Turkish exporters will be required to include adjustment clauses in contracts and prepare for multiple scenarios. They also need to adapt pricing strategies, secure resilient logistics, through investing in the US operations, if needed, and maintain strict compliance to avoid penalties. Local partnerships along with distributor networks will need to be strengthened. Brand positioning will shift from cost-based to value-based. To spread out the risk, existing stronghold in the EU market will be leveraged to expand trade. If additionally supported by strategic export policies and investment in competitiveness, Turkiye can capture larger US market in the coming years.

Fibre2Fashion News Desk (SB)

China’s textile and apparel sector will require at least $40.8 billion in investment to reduce emissions by 50 per cent by 2030, according to the Apparel Impact Institute (Aii). Despite strong policy backing, decarbonisation is yet to scale across the industry.

China produces over half of the world’s fibre output and accounts for more than 30 per cent of global apparel exports, valued at $294 billion, positioning it as a pivotal force in lowering fashion’s carbon footprint. However, while national ‘dual carbon’ targets, green finance policies, and clean energy progress have created a favourable backdrop, decarbonisation efforts remain uneven in practice, Aii and Development Finance International (DFI) said in their latest report, ‘Landscape and Opportunities for the Decarbonization of China’s Textile and Apparel Manufacturing Sector’.

Aii identified around 44,000 ‘scaled enterprises’—companies with annual turnover above CN¥20 million (~$2.85 million)—as the segment best positioned to act. These manufacturers, many clustered in industrial parks, have the operational scale, emissions impact, and data readiness to drive near-term reductions, but face persistent barriers beyond financing.

China’s textile and apparel sector needs at least $40.8 billion to cut emissions by 50 per cent by 2030, as per Aii.
Despite supportive ‘dual carbon’ policies, decarbonisation remains uneven.
Around 44,000 scaled enterprises are best placed to act but face technical and financing gaps.
Industrial parks, green finance, and coordinated action are seen as key to scaling emissions reductions.

Manufacturers report gaps in technical know-how, planning tools, and localised support, alongside difficulty interpreting evolving brand and regulatory requirements. Although domestic green finance is widely available, aligning standard loan and equity models with diverse factory needs remains a challenge.

International financial institutions are playing a growing role, with $4.3 billion across eight active green credit lines confirmed as of 2024. However, uptake is often limited as local loans priced at 3-4 per cent are preferred over IFI-backed financing, which ranges from 3-7 per cent and can involve stricter conditions.

Industrial parks are highlighted as a strategic platform for scaling action. More than 11,000 textile enterprises operate across over 1,300 parks, offering shared infrastructure and governance models that can lower transition costs. China’s nationwide zero-carbon industrial park initiative, launched in 2025, further strengthens this pathway.

The report also pointed to emerging best practices, including digital tools, factory-level diagnostics, and bundled solutions piloted by local governments, brands, and technical partners. Aii’s Climate Solutions Portfolio identified priority interventions such as energy efficiency upgrades, renewable energy adoption, chemical innovation, and thermal energy recovery.

Aii calls for stronger collaboration across brands, manufacturers, financial institutions, and local authorities. Key recommendations include diversifying financing mechanisms, improving alignment between brand expectations and supplier capabilities, embedding low-carbon planning into core business strategy, expanding local technical assistance, and strengthening data-sharing platforms.

The report added that coordinated action and aggregated demand will be critical to translating strong climate ambition into tangible emissions reductions across China’s textile and apparel value chain.

Fibre2Fashion News Desk (SG)