Fashion
India’s textile industry eyes full value addition after QCO removal
R K Vij, secretary general of the Polyester Textile Apparel Industry Association (PTAIA), told Fibre2Fashion, “India has taken a bold step making Indian textile products competitive in the global market. The QCOs earlier led to increased raw material prices of the entire textile value chain affecting the growth of Indian MMF industry, both in terms of domestic growth as well as export competitiveness. The apparel and textile sector essentially uses two kinds of raw materials. Any non-tariff barrier like QCOs, anti-dumping duty on the basic raw materials should not be there but the same could be put on the value-added products like fabrics and garments so that the import of these value-added products could be restricted.”
India’s removal of QCOs on polyester value chain products has boosted industry confidence, with leaders saying it will lower raw material costs, improve global competitiveness, and support MMF-led growth.
SIMA and PTAIA leaders welcomed the move, urging similar action for viscose staple fibre and filament yarn to capture emerging global market opportunities.
“With the phasing out of QCOs, Indian textile industry will be able to sustain its fullest growth potential not only in the domestic market but also in the most competitive global markets with the availability of raw materials till the stage of fibre and yarn at internationally competitive prices”, Vij stated.
Previously, the rapid rise in QCOs increased compliance costs, caused delays, and led to supply chain disruptions for the MSME sector. However, the removal of QCOs on textile products and their raw materials is expected to ease compliance burdens and positively impact industrial supply chains.
Durai Palanisamy, chairman of the Southern India Mills’ Association (SIMA), thanked the government for removing the QCOs, stating that this path-breaking reform marks a major milestone in positioning India as a global hub for manmade fibre (MMF)-based textiles and apparel. In a statement, he noted that removing the QCO on terephthalic acid and ethylene glycol—key raw materials for manufacturing polyester fibre—is a welcome move that will improve raw material availability and boost competitiveness. Overall, the decision is expected to accelerate growth across the MMF textile value chain, including yarns, fabrics, garments, made-ups, and technical textiles.
The SIMA chairman further observed that easing QCOs will streamline imports of polyester and its raw materials, ensuring uninterrupted supply to spinners, weavers, and processors. Competitive imports are likely to stabilise domestic prices, reducing cost pressures on downstream manufacturers and exporters.
He also appealed to Prime Minister Narendra Modi to remove the QCO imposed on viscose staple fibre (VSF) and filament yarn, which must be made available at internationally competitive prices and in an uninterrupted manner to seize emerging global market opportunities.
Fibre2Fashion News Desk (KUL)
Fashion
Higher energy costs to slow India FY27 growth to 6.5%: ICRA
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)
Fashion
Indonesia’s apparel exports at $8.7 bn; 56% shipments to US
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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Fashion
Methanol jumps nearly 150% as oil surge disrupts markets
Methanol prices in India have surged nearly 150 per cent from pre-Iran–US tension levels, tracking a sharp rise in crude oil and tightening global energy markets.
Hormuz disruption risks, limited rerouting capacity, rising freight and insurance costs, and constrained imports are fuelling volatility, with prices seen approaching ₹90 per kg.
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