Fashion
Indian textile sector pushes for 5% uniform GST rate
Industry bodies have long demanded that the entire textile value chain be brought under the lowest 5 per cent rate to avoid inverted duty structures. They also urged the Council to refrain from imposing an 18 per cent tax on garments priced above ₹2,500, as recently speculated, warning that such a move could hurt categories like branded garments, winter wear, and ethnic wedding attire.
The Southern India Mills’ Association (SIMA), along with other trade bodies and export promotion councils, has specifically demanded that the entire man-made fibre (MMF) value chain be taxed at 5 per cent, on par with the cotton chain. This request was raised directly with Union Finance Minister Nirmala Sitharaman during an interaction in Chennai on September 2, 2025, attended by representatives of all major textile associations and export councils. A uniform GST, they argued, would resolve inverted duty issues, refund accumulated capital goods GST credit, and improve liquidity.
Indian textile and apparel industry is urging the GST Council to adopt a uniform 5 per cent rate across the value chain to avoid inverted duty structures.
Ahead of the 56th Council meeting, SIMA and CMAI have warned that a proposed 18 per cent levy on garments priced above ₹2,500 would hurt winter wear, wedding attire, and artisan-made clothing.
SIMA chairman Dr S K Sundaraman thanked the Finance Minister for engaging with industry representatives and recognising the unprecedented challenges faced by the sector due to US tariffs. He said the minister indicated that a major revamp of GST rates and systems is likely, paving the way for historic tax reforms that will ease business operations and enhance global competitiveness. Sundaraman also noted that Sitharaman has shown willingness to address inverted duty structures to ensure GST does not escalate costs for consumers.
The Clothing Manufacturers Association of India (CMAI) also called on the Council to avoid price-based taxation, cautioning against raising the GST rate on garments above ₹2,500 from 12 per cent to 18 per cent.
According to CMAI, such a move would severely affect middle-class consumers and the organised garment manufacturing sector, which is already struggling due to tariff wars. It stressed that higher-priced garments are not necessarily luxury items, but often costlier due to raw material prices, artisan handwork, and production complexity.
For instance, most woollen garments essential for middle-class consumers across North, North-East, and East India are priced between ₹3,500 and ₹7,000. Similarly, wedding wear typically ranges from ₹10,000 to ₹15,000, while artisan-made clothing commands higher prices due to the time and craftsmanship involved. Subjecting these categories to an 18 per cent GST would, CMAI argued, devastate purpose-specific clothing segments.
CMAI has urged the Prime Minister to intervene, emphasising that the garment industry is the backbone of India’s textile heritage and a vital source of employment for millions—particularly women, semi-skilled, and unskilled workers.
Fibre2Fashion News Desk (KUL)
As Bangladesh heads towards general election in February next year, the GED’s economic outlook is cautiously optimistic.
Deep structural weaknesses along with the political transition period could constrain economic momentum, Bangladesh’s Planning Commission recently said.
The economy could regain pace if the election leads to a clear political direction and reforms are carried out.
Election-related spending and possible disruptions may add further pressure on inflation and the foreign exchange market.
The update said the economy could regain pace if the election produces a clear political direction and the next government decisively undertakes long-delayed reforms, particularly in improving the business climate, stabilising the banking system and ensuring fiscal and energy security.
Without such reforms, the recovery may be short-lived, it noted.
Election-related spending and possible disruptions during the transition are expected to add further pressure on inflation and the foreign exchange market, complicating stabilisation efforts, domestic media reports cited the GED document as saying.
Overall inflation dropped to 8.17 per cent in October from 10.87 per cent a year earlier. Non-food inflation inched up to 9.13 per cent.
While bank deposits grew at nearly double-digit rates through August and September, private-sector credit growth fell to just 6.29 per cent—the lowest in at least four years and well below the central bank’s target of 7.2 per cent for fiscal 2025-26.
High lending rates, cautious bank behaviour and political uncertainty have depressed investment appetite. Meanwhile, government borrowing from commercial banks surged by 24.45 per cent in September, raising concerns about crowding out private borrowers, said the document.
Revenue collection in October this year fell short of the target by Tk 8,324 crore, achieving only 77.37 per cent of the month’s goal. All major revenue streams—import duties, domestic VAT, and income tax—underperformed.
Foreign exchange reserves improved significantly, rising from $24.35 billion in November 2024 to $32.34 billion in October 2025.
Export earnings remained volatile. Exports peaked in July at $4.77 billion, but suffered sharp declines in April and June.
Fibre2Fashion News Desk (DS)
By
Reuters
Published
December 4, 2025
IKEA opened its first store in New Zealand on Thursday, entering its 64th market and marking the furniture retailer’s most distant outpost from its native Sweden. The long-awaited 34,000 square-metre (365,973 square foot) store at the Sylvia Park shopping centre in Auckland employs 500 people and is IKEA’s 505th store.
IKEA’s New Zealand expansion was announced in 2019 and comes 50 years after opening in neighbouring Australia. IKEA now operates in 64 markets around the world.
IKEA franchisee Ingka Group said the opening, which drew thousands of people, was special given New Zealand’s distance from Sweden. “It’s a real leap of faith, investment and friendship, showing we’re not just exporting a store, we’re planting roots for the long term, creating jobs, learning from local communities and tailoring our offer for Kiwi homes,” Retail Manager Tolga Oncu said in a statement.
© Thomson Reuters 2025 All rights reserved.
Ermenegildo “Gildo” Zegna, currently Group Chairman and CEO, will assume the role of Group Executive Chairman. In this capacity, he will focus on safeguarding the legacy and integrity of the Group’s three brands—ZEGNA, Thom Browne, and TOM FORD FASHION—while continuing to drive long-term value creation. He will also retain oversight of the Group’s Textile Division, the Group General Counsel’s office (including Internal Audit), and the External Relations department, which encompasses Sustainability, Investor Relations, and Corporate Communications.
Ermenegildo Zegna Group has announced a new leadership structure effective January 1, 2026.
Gildo Zegna will become group executive chairman, focusing on brand legacy and key corporate areas.
Gianluca Tagliabue will be appointed group CEO, while Edoardo and Angelo Zegna will become co-CEOs of the Zegna brand, leading brand strategy, product, and commercial performance.
Gianluca Tagliabue, currently Group Chief Financial Officer and Chief Operating Officer, will assume the role of Group CEO subject to shareholders’ approval. Working in close partnership with the Group Executive Chairman, Mr. Tagliabue will be responsible for shaping and executing the Group’s long-term strategy, driving business performance across all brands, and further strengthening the integration of the Group’s corporate functions. He will also oversee manufacturing operations. The CEOs of the Group’s brands will report to him. Gian Franco Santhià, currently Group Control & Chief Accounting Officer, will be appointed as Group CFO, reporting to the Group CEO.
Edoardo and Angelo Zegna, members of the fourth generation of the Zegna family, will be appointed Co-CEOs of the ZEGNA brand. They will succeed Gildo Zegna, who has held this role for over 20 years. Edoardo Zegna, currently Chief Marketing and Digital Officer of ZEGNA as well as Group Chief Sustainability Officer, will lead all aspects of brand strategy, from brand image to marketing, and, together with ZEGNA’s Artistic Director Alessandro Sartori, design matters, including store design. Angelo Zegna, currently CEO of ZEGNA’s EMEA region and Global Client Strategy Director, will oversee product development, merchandising, and commercial strategy, driving performance across markets and channels.
Gildo Zegna, Chairman and CEO of the Ermenegildo Zegna Group, commented: “I am proud and excited about today’s announcement. One of the most important responsibilities of a leader is to think ahead—to prepare for the future and empower the next generation of leadership. This belief has always been deeply rooted in our family values and is a key force behind today’s announcement.
Together with the Board, I have asked Gianluca Tagliabue to assume the role of Group CEO. Over the past decade, Gianluca has been a cornerstone of our Group, leading the company through key transformations. The Ermenegildo Zegna Group is a custodian of authenticity. Gianluca embodies this philosophy and will support the CEOs of our brands in pursuing the Group’s mission as a trusted and forward-looking guide.
Edoardo and Angelo’s complementary strengths and clear vision will make them a highly effective team to lead ZEGNA brand. They continue the family legacy and have demonstrated their business leadership over the past years. Together, they will not only carry forward the brand’s timeless heritage, but strengthen it further.
As Executive Chairman, I will stand alongside our new leadership team and all our colleagues — a curious and passionate custodian of our brands’ vision and values, as I have always been. I will also continue to oversee the Group’s textile platform — where it all began. I am looking forward to shaping our Group’s next chapter with this new leadership team.”
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Bangladesh’s economic outlook cautiously optimistic: Govt
Child deaths will rise this year as aid cuts reverse progress, says Gates
RFK Jr.’s vaccine panel to vote on changing hepatitis B shot recommendation for babies
-
Tech4 days agoGet Your Steps In From Your Home Office With This Walking Pad—On Sale This Week
-
Sports3 days agoIndia Triumphs Over South Africa in First ODI Thanks to Kohli’s Heroics – SUCH TV
-
Entertainment3 days agoSadie Sink talks about the future of Max in ‘Stranger Things’
-
Fashion3 days agoResults are in: US Black Friday store visits down, e-visits up, apparel shines
-
Politics3 days agoElon Musk reveals partner’s half-Indian roots, son’s middle name ‘Sekhar’
-
Tech3 days agoPrague’s City Center Sparkles, Buzzes, and Burns at the Signal Festival
-
Uncategorized1 week ago
[CinePlex360] Please moderate: “Americans would
-
Tech1 week agoWake Up—the Best Black Friday Mattress Sales Are Here