Fashion
India extends anti-dumping duty on flax fabric from China, Hong Kong
The government has formally notified the continuation of ADD on imports of flax fabric from China and Hong Kong, following the outcome of the sunset review investigation. The extension was issued through Notification No. 31/2025-Customs (ADD) by the Ministry of Finance, Department of Revenue, last Friday.
India has extended anti-dumping duty on flax or linen fabric imported from China and Hong Kong for another five years, following a sunset review that confirmed continued dumping and injury to domestic producers.
DGTR found increased import volumes and suppressed domestic prices despite earlier duties.
Imports from China will attract $2.36 per metre, while those from Hong Kong will face $1.14 per metre.
The subject goods are defined as woven fabric containing more than 50 per cent flax content—commonly referred to as flax or linen fabric—classified under HSN code 5309 of the Customs Tariff Act, 1975.
The Directorate General of Trade Remedies (DGTR) initiated the review on March 29, 2025. In its final findings on August 8, 2025, the authority confirmed continued dumping of these goods from China and Hong Kong, resulting in material injury to the domestic industry. The report cited a rise in import volumes despite existing duties, deterioration in domestic price levels due to import undercutting, and suppression of domestic prices, which prevented local manufacturers from passing on increased raw material costs.
Based on these findings, the Central Government has extended the anti-dumping duty on flax fabric imports from the identified sources. Imports originating in or exported from China will attract a duty of $2.36 per metre, while those linked to Hong Kong will face a duty of $1.14 per metre, irrespective of producer or exporter. The duty is payable in Indian currency, calculated as per the exchange rates notified by the Ministry of Finance under Section 14 of the Customs Act, 1962, on the date of filing the bill of entry. The latest notification confirms that the duty will remain in effect for the next five years from its date of publication.
The continuation of the duty aims to ensure fair trade and protect domestic producers of flax-based fabrics and linen textiles, who have faced sustained price and volume pressures from lower-priced imports.
Fibre2Fashion News Desk (KUL)
A total of 25 pilot investments led by small and medium enterprises (SMEs) have progressed from the lab to near-market stage under RegioGreenTex, a three-year European Union (EU)-funded project that recently concluded. Most of these are expected to be commercialised within one to three years.
Twenty five pilot investments led by SMEs moved from lab to near‑market under RegioGreenTex, an EU-funded project that ended recently.
Most of these are expected to commercialise in one to three years.
Five regional hubs mapped SME needs and developed services and value chains as well as tools to help SMEs.
These are now open for collaboration and the pilot portfolio is primed for investors and adopters.
At least 70 per cent of the EU grant was allocated to SMEs. A total of 43 partners from 11 regions across eight countries participated in the project, leveraging their expertise towards a common goal of advancing industry and research.
RegioGreenTex was one of the first projects funded under the Interregional Innovation Investments (I3) Instrument programme that focused on process, service and business model innovation, developing advanced textile recycling technologies, regional recycling hubs, and a digital ecosystem for matchmaking and capacity building.
Five regional hubs mapped SME needs and developed services and value chains as well as tools that keep helping SMEs, an official release said.
The RegioGreenTex Digital Tool keeps matchmaking, sharing trainings and hosting the participants’ knowledge base.
The Waste Wizard shows how artificial intelligence-enhanced matchmaking can link leftover textiles with the right reuse or recycling routes.
From recycled-content yarn processes (Tintex) to Recycrom low-impact dyeing (Officina39), ultrasonic quilting for full recyclability (Rovitex) and hybrid recycled-fibre yarns (Hilaturas Mar), the pilots showed concrete, repeatable ways to cut impact without losing performance.
The hubs are now open for collaboration, the digital tools are live and the pilot portfolio is primed for investors and adopters.
Fibre2Fashion News Desk (DS)
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)
Indonesia’s apparel exports rose modestly to $8.705 billion in 2025 from $8.316 billion in 2024, reflecting gradual recovery.
The US remained dominant, accounting for over 56 per cent of shipments, highlighting growing market dependence.
While Japan, South Korea and Europe offered stability, exports stayed concentrated in key products and segments.
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