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GST rate rationalisation to profit Indian states in FY26: SBI Research

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GST rate rationalisation to profit Indian states in FY26: SBI Research



The State Bank of India’s (SBI) research unit recently estimated that in fiscal 2025-26 (FY26), states will remain net gainers from goods and services tax (GST) collections even under the proposed rate rationalisation due to the unique revenue-sharing architecture of the tax.

First, GST is shared equally between the central government and the states, with each receiving half of the collections. Second, under the mechanism of tax devolution, 41 per cent of the central government’s share flows back to the states, SBI Research said in a report on GST.

The proposed goods and services tax (GST) rate rationalisation is likely to result in stronger revenue collections validated by historical trends due to the unique revenue-sharing architecture of the tax, according to SBI Research.
FY26 projections indicate that states are expected to receive at least ₹10 trillion in state GST plus ₹4.1 trillion through devolution, thereby making them net gainers.

Taken together, this means that out of every ₹100 of GST collected, states ultimately accrue nearly ₹70.5.

SBI Research’s FY26 projections indicate that states are expected to receive at least ₹10 trillion in state GST plus ₹4.1 trillion through devolution, thereby making them net gainers.

The gains accrue even when the researchers did not take the additional consumption boost due to rate rationalisation.

“Evidence from earlier rounds of GST rate changes, such as those in July 2018 and October 2019, suggests that rationalization does not necessarily weaken revenue collections. Instead, the evidence points to a temporary adjustment phase followed by stronger inflows,” the SBI Research report noted.

“While an immediate reduction in rates can cause a short-term dip of around 3-4 per cent month on month (roughly ₹5,000 crore, or an annualized ₹60,000 crore), revenues typically rebound with sustained growth of 5-6 per cent per month,” it added.

Fibre2Fashion News Desk (DS)



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Expanding British luxury brand Sunspel puts down roots in Paris

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Expanding British luxury brand Sunspel puts down roots in Paris


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October 20, 2025

Step by step, Sunspel is steadily expanding its footprint. In Paris, the English specialist in timeless luxury has set up shop at 38, rue Sainte-Croix de la Bretonnerie, in one of fashion’s favourite districts: the Marais. The label inaugurated a 60-square-metre boutique there on October 8, marking its third opening of 2025.

Shopfront of Sunspel’s Paris boutique – Sunspel

Located on one of the oldest streets in the Marais, dating back to the 13th century, the space is run by a team of three. The brand, founded in 1860 by Thomas Arthur Hill, presents its classic, tightly edited wardrobe of T-shirts, polos, jumpers, coats and trousers. In the centre of the boutique, customers can explore a number of accessories and other items, including fragrances developed since 2019 in partnership with British perfumer Lyn Harris.

Harris Tweed and Sea Island cotton

From the outset, Sunspel has been known for the refinement of its materials. The brand uses Sea Island cotton, a Caribbean variety that requires abundant water and sunshine, developed in the 17th century by European settlers in the British West Indies. Sunspel T-shirts are also made from Supima cotton, sourced from a Californian farm. For other pieces, the label uses cashmere from Mongolia, spun in Switzerland.

The T-shirt is the brand's flagship product
The T-shirt is the brand’s flagship product – Sunspel

Sunspel’s storytelling is full of such anecdotes. Pointing to a woollen coat, Nicholas Brooke, the brand’s owner since 2005, explains, as an accompanying video shows, that the piece is made from Harris Tweed, a fabric produced by the inhabitants of an archipelago in the north-west of Scotland, in their own homes.

The Riviera polo shirt was created in the 1950s for the climate of southern France by the founder’s grandson. Today, it is produced in Portugal on lace-making machines, in a factory with 25 units. The brand’s enduring classic remains the T-shirt, a line of which was created especially for Daniel Craig in “Casino Royale”. They are made in Nottingham, England, and the seamstresses stitch their first names into them — a way of highlighting these often-unseen workers.

“We want to continue investing in France”

A frequent collaborator, Sunspel has signed co-creations with Lemaire, Comme des Garçons, JW Anderson, Paul Smith and Thom Browne. In these collaborations, the brand primarily contributes its technical expertise, leaving the creative side to its partners. On its own pieces, there is no logo, and the colours are restrained, partly inspired by the paintings of British artist Richard Whadcock. At the same time, the brand continues to build on past innovations and is working on new technical projects. It recently unveiled a blend of Sea Island cotton and cashmere.

Nicholas Brooke acquired Sunspel from the Hill family in 2005
Nicholas Brooke acquired Sunspel from the Hill family in 2005 – Sunspel

Sunspel CEO Raul Verdicchi joined the brand in 2023 after stints at AlphaTauri and the Zegna Group.

“Sunspel is unique because it combines several factors: it is an English brand, with quality products and heritage,” he explains. “It works very well for us — we even grew during Covid. Today, this boutique marks a new milestone. And in the future, we want to continue investing in France.”

For the time being, the Marais space attracts both French customers and international tourists, who account for 55% of its clientele.

A boutique in Tokyo in early 2026

Sunspel already has eight shops across London, and two more in the rest of the UK – in Edinburgh, and a stone’s throw from Liverpool, in the Cheshire Oaks Designer Outlet. In the United States, the label has five standalone boutiques, in Los Angeles, San Francisco, Santa Barbara and New York, in SoHo and on the Upper East Side. In the midst of its international expansion, Sunspel will open a boutique in Tokyo in early 2026. The brand is also present at numerous retailers such as Beams, Saks, Harrods, Selfridges & Co, La Samaritaine and Printemps, giving it a physical presence in 34 countries.

The brand uses, among other channels, the press and cinema to attract new customers
The brand uses, among other channels, the press and cinema to attract new customers – Sunspel

To support this expansion, the brand needs to refresh its customer base. Brooke explains: “We have 60-year-old customers who have been buying from us for 30 years, but also customers who are in their twenties. To retain a customer base, we do not focus on age, but on the quality of our products.”

He goes on to point out that in the UK, the brand enjoys a certain renown, thanks in particular to its first creative director, Northern Irish designer, Jonathan Anderson. Other channels, such as the press and cinema, also help to renew the brand’s customer base.

For 2025, Sunspel posted revenue of £36 million, or almost €41.5 million. Since 2020, the brand has achieved annual growth of 20%.

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Kering workers in Italy to strike over ‘unilateral decisions’ by the company

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Kering workers in Italy to strike over ‘unilateral decisions’ by the company


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Reuters

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October 20, 2025

Workers at Italian units of French luxury group Kering will stage a four-hour strike on Tuesday, unions said, citing what they said was the company’s unwillingness to engage in dialogue over issues such as remote working.

Balenciaga – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

The action will affect staff at Kering brands including Gucci, Balenciaga and Yves Saint Laurent, with demonstrations planned in Milan and Scandicci, a town close to Florence.

Kering is dealing with a slump in sales and high debt and it agreed on Monday to sell its beauty business to L’Oreal .

Italian unions Filctem Cgil, Femca Cisl and Uiltec Uil said recent talks with Kering’s representatives showed a “preconceived closure to dialogue”, accusing the group of unilateral decisions that risk weakening labour relations and workers’ rights.

One example was the company’s decision to limit remote work, according to Filctem Cgil union representative Massimo Bollini.

“But beyond this specific case, what’s changing is the approach – decisions are presented as final and non-negotiable,” he told Reuters.

Kering Italia said it informed unions last November of its plan to halve monthly remote work days from eight to four, in line with the group’s global strategy.

The previous agreement was extended until September to allow for dialogue and the new policy took effect in October. 

© Thomson Reuters 2025 All rights reserved.



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Bosideng names Kim Jones creative director for Areal luxury project

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Bosideng names Kim Jones creative director for Areal luxury project


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October 20, 2025

Kim Jones is starting afresh with Bosideng. The British designer, formerly at Dior and Fendi, has been appointed creative director of Areal, the Chinese down outerwear giant’s new luxury project.

Kim Jones – LVMH

Jones will make his debut in the new role in the Autumn/Winter 2025/26 season with a 15- to 20-piece capsule for both men and women.

“The Areal capsule, which we have been working on for six months, will be distributed in China via two pop-ups and 50 stores in the country’s major cities, as it is a niche line with a higher price point than Bosideng. For now, as the project has only just launched, it is intended solely for China; then we’ll see how it evolves,” Pietro Ferragina, creative director of the Bosideng brand since late 2017, explained to FashionNetwork.com.

Jones’ appointment brings to fruition a partnership that, according to international press reports, began last year when the designer arrived in Shanghai to bring the new Areal concept to life.

The move marks a decisive shift for Bosideng, which aims to elevate its position in the luxury sector through Areal, conceived as a high-end crossover project.

Bosideng's fashion show in Paris
Bosideng’s fashion show in Paris

The Chinese brand, fresh from its debut on the Paris Fashion Week runways, has specialised in outerwear for more than 40 years and posts annual turnover of over €3 billion.

Jones stepped down as artistic director of Dior Homme, owned by LVMH, last January. Shortly before, he announced his resignation from Fendi, where he led womenswear and couture. He was also at the helm of Louis Vuitton menswear for more than seven years, significantly rejuvenating its image.

Born in London in 1979, Jones, whose career began in 2003 with his first appearance at London Fashion Week, launched his own label (later suspended) early in his career and has forged collaborations with Alexander McQueen, Umbro, Hugo Boss and Iceberg.

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