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Indian textile industry hails GST reforms, urges review of ₹2,500 slab

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Indian textile industry hails GST reforms, urges review of ₹2,500 slab



The Indian textile and retail sector has welcomed the Goods and Services Tax (GST) rationalisation announced at the GST Council’s 56th meeting, highlighting relief from the inverted duty structure and a fibre-neutral approach. However, stakeholders flagged concerns over garments and footwear priced above ₹2,500 being placed in the 18 per cent slab.

Sanjay K Jain, chairman of ICC’s National Textiles Committee, highlighted the broader implications: “The long-standing demand for removal of the inverted duty structure in MMF yarn and fabric has been met—bringing the entire chain under 5 per cent GST, in line with cotton. However, garments priced above ₹2,500 will become around 6 per cent costlier. The use of manmade textiles is expected to rise as a result.”

India’s textile and retail sector has welcomed the GST rationalisation, with industry bodies lauding removal of inverted duty and alignment of MMF with cotton at 5 per cent.
CMAI, RAI and NITMA hailed the move as transformative, though concerns remain over garments and footwear above ₹2,500 being placed in the 18 per cent slab.
Stakeholders urged the Council to adopt a uniform 5 per cent rate.

The Clothing Manufacturers Association of India (CMAI) said the changes address two major demands—removal of inverted duty and equalisation of cotton and MMF chains at 5 per cent. “The increase of the 5 per cent limit from ₹1,000 to ₹2,500 is also an extremely positive move,” CMAI said, while urging the Council to reconsider taxing garments above this level at 18 per cent. “Garments above the price of ₹2,500 are also consumed in large numbers by the common man and middle class, especially woollen clothing, occasion wear, Indian traditional clothing and handlooms,” it added.

Suditi Industries Ltd, owner of kidswear brand Gini & Jony, said the revisions provide dual growth drivers—stronger consumption and improved margins. Commenting on the company’s expansion, Harsh Agarwal, CEO of Gini & Jony, said: “This is a pivotal time for Suditi. With the integration of Gini & Jony, we are no longer just a textile manufacturer—we are transforming into a consumer-facing retail powerhouse. The upcoming GST reforms and strengthening domestic consumption create a strong runway for growth.”

The Retailers Association of India (RAI) termed the move to a two-slab framework “a vital step towards simpler and fairer taxation” but warned against flaws in price-based thresholds. RAI said: “Such slabs create distortions, promote grey market activity, harm organised retail and discourage domestic manufacturing. All garments and footwear should ideally be taxed at 5 per cent, or at the very least, a more reasonable price threshold should be established.”

For the Northern India Textile Mills Association (NITMA), the decision marks a “transformative milestone” for India’s MMF sector. NITMA president, Sidharth Khanna, said: “We are pleased to share that the long-standing issue of the inverted duty structure in GST for MMF textiles has been successfully addressed. These changes will significantly lower costs across the MMF and technical textiles value chain, enhancing efficiency and export competitiveness.”

Raghunath Mannil Balakrishnan, chief executive officer at Mafatlal Industries Limited, opined, “The 56th GST Council reforms bring both opportunities and challenges for the textile and apparel sector. While the increase of GST on coal from 5 per cent to 18 per cent will push up fabric processing costs, the reduction of GST on yarn from 12 per cent to 5 per cent should partially balance this out. As a result, fabric prices overall may not see a significant change. What is particularly encouraging is the reduction of GST on garments priced below ₹2,500 from 12 per cent to 5 per cent. This is a consumer-friendly move that will make mid-market apparel more affordable, stimulate demand, and strengthen growth in this critical segment. For an industry that is both price-sensitive and volume-driven, such measures can provide the much-needed impetus for growth. At Mafatlal, we see this as a positive step that can support industry volumes while ensuring affordability for a wider base of consumers.”

The Southern India Mills’ Association (SIMA) also hailed the GST rationalisation as a long-pending demand fulfilled, calling it a breakthrough for the MMF textile value chain. Dr. S K Sundararaman, chairman, SIMA, said: “This bold and historic reform slots the entire MMF chain at 5 per cent, addressing raw material structural issues that had made the poor man’s clothing more expensive.”

He noted that global MMF accounts for 70 per cent of fibre consumption but only 30 per cent in India, largely due to earlier tax distortions. He added: “The government has set a vision to grow textiles from $172 billion to $350 billion and exports from $37 billion to $100 billion. Polyester will be the main growth engine to achieve this vision.”

Dr. Sundararaman also appreciated the establishment of fibre neutrality and the introduction of 90 per cent provisional refunds for raw material duties, saying these measures would “boost domestic consumption by 7–10 per cent in the near term and help India withstand abnormal tariffs imposed by the US.”

The Indian textile industry has collectively thanked the government for addressing long-standing demands, while pressing for further rationalisation to ensure all garments and footwear are taxed at a uniform rate.

Fibre2Fashion News Desk (KD)



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The North Face and Cecilie Bahnsen launch second collaboration

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The North Face and Cecilie Bahnsen launch second collaboration


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October 21, 2025

The North Face and Danish designer Cecilie Bahnsen have unveiled their second collaboration, following its debut at Bahnsen’s Fall/Winter 2025 runway show during Paris Fashion Week.

The North Face and Cecilie Bahnsen launch second collaboration. – The North Face X Cecilie Bahnsen

Building on the foundation of their first partnership, the collection reimagines The North Face’s alpine icons through Bahnsen’s hyper-feminine couturier style. The latest lineup introduces new fabrics, winter-ready details, and an advanced layering system.

Launching October 30, the seven-piece collection embraces a warmer, richer palette. Highlights include a cinched-waist rework of the down Himalayan Parka, a quilted down skirt inspired by Bahnsen’s signature silhouettes, and an oversized down jacket that merges functionality with Bahnsen’s signature trimmings. Completing the collection are a reinterpreted Denali Fleece Jacket, a refined Wool DotKnit base layer, a crossbody bag inspired by vintage climbing gear, and fresh takes on The North Face’s Verto boots and Traction Mules.

 “Icons are not prescribed, they are born. At The North Face, our Icons were born on the edges of the Himalayas and adopted by the streets of New York, London, Paris, or Tokyo. In our second collaboration with Cecilie Bahnsen, we’ve looked at icons of the past and present through her lens. Together, we’ve explored the edges of our brand through silhouette, materialization, and technique all while honoring both brands’ DNA,” explained North Face’s design director, David Whetstone. 

The collection launches with a campaign shot by Ellen Fedors along the coastlines of Mølle and Kullaberg in Sweden. Styled by Emelie Johansson, the imagery captures The North Face athletes — including trail runner Ida-Sophie Hegemann and boulderer Melina Costanza — alongside models navigating the dramatic Scandinavian landscape.

“The campaign is about wanderlust and authenticity, about finding strength in landscapes that feel both intimate and infinite,” added Bahnsen. “It was important to me that the women in the images, whether athletes or models, embody a sense of determination, but also ease. That balance feels true to how I design, and to how these pieces should live in the world.”

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Primark’s Gran Vía store in Madrid contributed €83 million to Spain’s GDP in 2024

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Primark’s Gran Vía store in Madrid contributed €83 million to Spain’s GDP in 2024


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October 21, 2025

In 2015, with the reverberations of the early‑2000s economic crisis still being keenly felt in retail, Irish low‑cost fashion brand Primark chose to step out of Spanish shopping centres, its natural habitat until then, and set up shop at 32 Gran Vía in Madrid, in a now century‑old building that originally housed the Madrid-Paris department store (a pioneer of its kind in Spain). For months, the opening drew queues of customers waiting to enter the store. A decade on, Primark is assessing the impact of this store on the city and the economy.

Interior of the Primark store on Gran Vía in Madrid – Primark

This Tuesday, October 21, at the building that serves as the chain’s flagship store in Spain and also houses its offices, Primark presented a report titled “10 years in the heart of Madrid,” prepared by the economic consultancy Afi. According to its analysis, in 2024 the Gran Vía store, which spans 12,500 square metres, achieved a record impact: it contributed 83 million euros to national GDP (including, among other factors, its direct operations and supply chain activity) and generated a further 42 million euros in taxes and social contributions. In addition, this flagship store records more than five million transactions annually and in 2024 directly employed 1,060 people.

Beyond 32 Gran Vía, Primark’s contribution translates into 0.4 indirect and induced jobs in the Madrid labour market for every direct job. And, for every euro of value the brand generates through its operations, other businesses and sectors generate an additional 0.5 euros for the Madrid economy, according to figures from the Afi report.

The consultancy also points to a “halo effect” along the capital’s commercial hub, Gran Vía. Since the opening of Primark, that is, between 2015 and 2025, the number of retailers has risen from 101 to 186, and restaurants from 46 to 90.

“Ten years ago, when we decided to open here, we wanted to make a difference, to change the perception of the brand and elevate it. We wanted to convey a message to the Spanish consumer and we have succeeded, as well as helping to boost the dynamism of Gran Vía. This store, which leads Iberia by volume and transactions, has changed us as a brand,” said Carlos Inácio, managing director of Primark Iberia, at the presentation of the report.

The key figures of this analysis were revealed during a roundtable discussion, in which Diego Vizcaíno, Managing Partner of Afi, also took part. He stressed that the opening of this store was “a challenge for the city as a whole and for the companies that work with Primark”. “It was a challenge for the evolution of Madrid’s retail fabric; competitors had to raise their game, as did suppliers,” added the executive.

Façade of the Primark store on Gran Vía in Madrid
Façade of the Primark store on Gran Vía in Madrid – Primark

This Gran Vía store never sleeps: it operates 24 hours a day, seven days a week, although not all of those hours are trading hours. “For the night shift workers, who have to replenish the merchandise, it’s as if they had to set up a new store every day,” said Juana Rodero, Primark’s director of people and culture, who also participated in the roundtable discussion. To supply the store, 1,500 lorries are unloaded every year, which translates into some 50,000 unloading hours and more than one million boxes.

“I think transformation is the word that defines these 10 years,” concluded Carlos Inácio. “We arrived, we set trends and the challenge is to stay on that path. We have the responsibility to keep building a dynamic and inclusive business that continues to grow,” said the executive. He also addressed one of the questions that hovers over any discussion of Primark’s future strategy: will it continue to focus on the offline channel, as it has done so far, or is it considering the leap to online sales? “We are not ruling out anything; what we are doing is studying and analysing the channel to launch it when we are certain that it will work. Currently, the company offers ‘click-and-collect’ in the UK; we are analysing the profitability of this model and whether it can be scaled to other territories, including Spain, the second-largest market for the brand.”

Primark, which has been operating in Spain since 2006, has 67 stores in the country, 250,000 square metres of retail space and employs more than 10,000 people. “Next year we will mark two decades in the country and we will celebrate it in style,” said the head of the chain in Iberia.

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As it refines wholesale strategy, Kitri debuts in Brands at M&S line-up

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As it refines wholesale strategy, Kitri debuts in Brands at M&S line-up


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October 21, 2025

M&S has added contemporary womenswear brand Kitri to its expansive ‘Brands at M&S’ online offer. It features a curated selection of the brand’s hero designs as the retailer “continues to drive style perceptions and broaden appeal”.

A handpicked edit from Kitri’s AW25 collection reflects its “signature balance of playfulness and sophistication, including standout partywear” for the upcoming season, we’re told.

This includes “statement outerwear” in dark chocolate vinyl and faux fur, and a 1920’s-inspired gold lurex fringed dress.

The move onto M&S’s platform represents Kitri’s “refined wholesale strategy, choosing to collaborate with a select group of partners to support sustainable growth and elevate the brand to the next level”. 

Brand founder Haeni Kim said: “As part of our wider business strategy, we’ve chosen to partner with a small number of select retailers who can help us grow and reach new audiences. M&S is an iconic British retailer with a loyal customer base and is on an exciting journey with its fashion business. We’ve been impressed by the direction they’ve taken over recent years and feel they are the perfect partner to re-launch our wholesale journey with.”

Its arrival coincides with M&S saying its Womenswear is a “top performing category” within ‘Brands at M&S’, making up 49% of sales in the last 12 months with double digit year-on-year growth coming from growing existing brands and onboarding new partners. 

It said the Brands at M&S platform has now grown to over 100 third-party names.

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