Fashion
India’s GDP to grow 6.5% in FY26 driven by consumption & tax cuts: S&P
Recent reductions in goods and services tax (GST) rates, combined with income tax cuts and interest rate reductions this year, will strengthen middle-class consumption and support household spending. This shift toward consumption-led growth comes as India navigates capital outflows and currency weakness triggered by unexpectedly high US tariffs and delays in a formal trade deal.
Uncertainty is likely to ease once the US trade pact favourable to India comes into force, boosting confidence and aiding labour-intensive export sectors.
India’s GDP to grow 6.5 per cent in FY26 driven by resilient consumption boosted by GST cuts, lower taxes and reduced interest rates, according to S&P.
Asia-Pacific growth remains steady, with China’s exports outperforming and regional demand supported by tech shipments, policy easing and lower oil prices.
Currencies are expected to firm slightly by 2026.
Asia-Pacific
S&P’s report also presented a broader picture of Asia-Pacific growth dynamics. China’s GDP grew 4.8 per cent year-on-year in the third quarter of this year, surpassing expectations and nearing its 2025 growth target of about 5 per cent. The upside surprise came from strong export performance as Chinese firms redirected shipments to other markets amid sharply reduced exports to the US. However, domestic demand weakened, with investment slowing due to prolonged real estate stress, overcapacity in manufacturing, and tighter local government spending. S&P has revised China’s 2026 GDP forecast up to 4.4 per cent from 4 per cent following tariff reductions by the US.
Across the rest of Asia-Pacific, both exports and domestic demand held firm through the third quarter. Strong global demand for tech products such as semiconductors supported shipments, while emerging markets benefitted from resilient labour markets, lower oil prices and policy support, including interest rate cuts and fiscal easing in some economies.
GDP growth for Asia-Pacific for 2026 excluding China is expected to rise 0.2 percentage points to 4.2 per cent, with consumer inflation remaining low due to moderate energy prices and export diversification away from the US.
Monetary policy and inflation trends
In Japan, the new government is expected to continue fiscal easing aimed at reducing household living costs, especially for low-income households. This will help moderate inflation and strengthen real incomes in 2026.
The Bank of Japan is set to maintain its gradual tightening approach, with one more 25-basis-point rate hike expected in December and only one increase projected for 2026.
Australia is seeing a steady recovery in household spending supported by lower interest rates and rising housing prices, with consumption forecast to grow solidly next year.
Indonesia and the Philippines have experienced currency weakness driven by protests, lower interest rates and reduced capital inflows.
Meanwhile, South Korea, Taiwan and Japan have seen depreciation due to portfolio outflows and expectations of large US-linked investments under new trade pacts.
Japan’s currency is also influenced by Prime Minister Sanae Takaichi’s preference for looser monetary policy. In contrast, the Malaysian ringgit and Thai baht have stabilised, supported by investment inflows into sectors such as data centres and initiatives to repatriate export earnings.
S&P forecasts a mild appreciation of Asia-Pacific currencies against the US dollar by end-2026 as trade flows realign and external volatility eases.
Fibre2Fashion News Desk (CG)
Directed by AJ Duan and photographed by Anton Gottlob in the streets of Shanghai, the hero film captures the poetry of movement in the city’s rush hour – a dance of anticipation as the four characters race towards a reunion. Amid the hum of the streets, fleeting moments of humour, warmth and surprise are revealed like hidden treasures.
Burberry marks the Year of the Horse 2026 with a capsule collection and Shanghai-set campaign starring Chen Kun, Tang Wei, Wu Lei and Zhang Jingyi.
The line reimagines the iconic Knight motif in painterly techniques, anchored in lucky red tones.
Store windows across China and Asia Pacific feature hand-painted designs created with de Gournay and artist Liao Wenjun.
The capsule collection
At the heart of the capsule collection – titled Burberry Year of the Horse Collection – is our house code, the Knight, playfully reinterpreted as a watercolour and ink sketch, brought to life through intricate techniques such as vibrant metallic embroidery, cross-stitch and appliquéd badges.
The horse is a significant motif for Burberry. The original Knight was the winning entry of a public public competition to design a logo for the house, circa 1901. Imbued with symbolism, it represents protection, innovation and Burberry’s forward-looking spirit.
The collection is grounded in red, a symbol of luck and prosperity in Chinese culture, with scarves and daywear in an exclusive new red Burberry Check.
Outerwear pieces include the Berryhill car coat and Floriston quilted jacket in iridescent nylon, while the gifting offering is expanded through soft accessories, bags and small leather goods detailed with the seasonal Knight.
Window and store display
Burberry has partnered with esteemed British hand painted wallpaper brand de Gournay on window designs throughout stores in China and Asia Pacific. The collaboration celebrates the craft and texture of Xuan paper – the traditional Chinese paper used for calligraphy and painting. Both surface and subject, the paper becomes a canvas for painterly expression and a reflection of artistry and heritage, by Chinese artist Liao Wenjun.
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)
By
Reuters
Published
January 15, 2026
India expects talks on a long-sought trade deal with the European Union to conclude this month, Trade Secretary Rajesh Agrawal said on Thursday, in what would be New Delhi’s largest agreement as it seeks new markets amid US tariff pressures.
The deal, under discussion for years, is seen as a chance for both sides to deepen economic ties and cut reliance on China and Russia. Bilateral trade between India and the EU totalled 120 billion euros ($140 billion) in 2024, making the bloc India’s biggest trading partner. Agrawal said the two sides were “very close” to finalising the pact and were exploring whether it could be wrapped up before leaders meet in New Delhi this month.
He said talks on a US trade pact were continuing and a deal would be reached when both sides were ready. Negotiations collapsed last year after a breakdown in communication between the two governments.
The president of the European Council, Antonio Costa, and European Commission president Ursula von der Leyen will visit India on January 25–27 and co-chair an India–EU summit on January 27, India’s foreign ministry said. If concluded, the deal would open India’s vast and heavily protected consumer market of more than 1.4 billion people to European goods and could reshape global trade flows as protectionism rises and a US-India pact remains stalled.
Both sides have been pushing to close a broad agreement after von der Leyen and Indian Prime Minister Narendra Modi agreed to fast-track negotiations in an effort to close a deal in 2025. Talks, relaunched in 2022, gained momentum after US President Donald Trump imposed tariff hikes on trading partners including India.
Brussels has recently signed deals with Mexico and Indonesia and stepped up talks with India, while New Delhi has reached agreements with Britain, Oman and New Zealand.
Some sensitive agricultural items have been excluded from negotiations, an Indian trade ministry official said. India will not open its agriculture or dairy sectors in any trade pact, officials have said, citing the need to protect millions of subsistence farmers.
The EU is pushing for steep tariff cuts on cars, medical devices, wine, spirits, and meat, along with stronger intellectual property rules. India is seeking duty-free access for labour-intensive goods and quicker recognition of its autos and electronics sectors.
Beyond goods, the agreement is expected to expand services trade, investment and cooperation in digital trade, intellectual property, and green technologies, as well as spur European investment in Indian manufacturing, renewable energy ,and infrastructure. Challenges remain over regulatory alignment and the protection of sensitive sectors. The EU’s carbon border levy, which requires importers to account for emissions in steel, cement and other carbon‑intensive products, has started to hit some Indian exports and is a key concern for New Delhi, exporters said.
© Thomson Reuters 2026 All rights reserved.
Louis Vuitton posted modest growth of 2 per cent, taking its brand value to $32.9 billion, though its ranking slipped to third among the world’s most valuable brands. Hermes held on to fourth place, underpinned by its disciplined scarcity approach, craftsmanship-driven positioning, and steady demand across leather goods, apparel, and accessories.
Chanel emerged as the fastest-growing luxury fashion brand in 2025, with brand value surging 45 per cent to $37.9 billion, ranking second globally, as per a recent report.
Apparel-led brands dominated nearly 69.7 per cent of total value.
Louis Vuitton slipped to third despite growth, while Dior was named the strongest brand.
France remained the global luxury hub, followed by Italy and Germany.
Apparel-focused luxury brands dominated the rankings, accounting for nearly 69.7 per cent of total brand value, underscoring fashion’s pivotal role in shaping the global luxury landscape.
Dior strengthened its standing as one of the sector’s most influential fashion houses, with brand value rising 18 per cent to $17.3 billion. Beyond value growth, Dior was named the strongest luxury and premium brand globally, achieving a Brand Strength Index score of 93.5 out of 100. Brand Finance highlighted Dior’s exceptional reputation scores, including a perfect score in the US, alongside strong consideration and recommendation metrics in Europe and North America.
Gucci, despite a 24 per cent decline in brand value to $11.4 billion and a drop to ninth place, remained firmly within the global top 10. Brand Finance noted that while the brand faces a period of transition, its scale, heritage, and global recognition continue to anchor its long-term relevance in luxury fashion.
Geographically, France remained the epicentre of luxury fashion, accounting for 48.7 per cent of total luxury and premium brand value, followed by Italy at 18.4 per cent and Germany at 13 per cent, added the report.
Five of the top 50 brands have earned an esteemed AAA+ brand strength rating—the highest rating awarded by Brand Finance.
Fibre2Fashion News Desk (SG)
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