AGP Executive Report

Bangladesh Textile Policy Push: Prime Minister Tarique Rahman has formed a high-level committee with the Finance Adviser and Commerce Minister to tackle long-running textile-sector problems, with BTMA urging support on gas and power supply, refinancing, and faster policy execution. Bangladesh Investment Approvals: ECNEC has approved eight development projects totaling Tk 14,041.21 crore, signaling continued state backing that can affect industrial capacity and inputs for textiles. India PLI Momentum: India’s PLI Scheme for Textiles has pulled in about Rs 8,117.64 crore and created 33,427 jobs (as of March 31, 2026), with Gujarat leading approved companies and investment. Corporate Value-Add Move: Gujarat’s Aastha Spintex plans to expand from yarn into value-added fabrics after acquiring Falcon Yarns, boosting spinning capacity to 17,457 MT and reporting a sizable order book. EU Compliance Pressure: California’s textile EPR law is headed to court as AAFA challenges CalRecycle’s choice of producer responsibility organisation, keeping extended producer responsibility in the spotlight. Craft & Livelihoods: Nigeria’s First Lady announced ₦2bn to revive Akwete weaving in Abia, while the Tarlac (Philippines) government launched a weaving revitalization effort for local weavers and crocheters.

EU Fashion Rules: The EU’s ban on destroying unsold clothing and footwear is now pushing brands toward verifiable tracking, with SMX pitching molecular marking plus Digital Material Passports to prove origin and recyclability. Textile Safety Recall: Madewell recalls two sweater styles (about 5,900 units) after potential flammability non-compliance, following a CPSC report of a sweater catching fire. Local Heritage Funding: Nigeria’s First Lady Oluremi Tinubu pledges ₦2bn for an Akwete weaving and research centre in Abia, aiming to preserve authenticity while scaling modern products. Export & Policy Push: India and North Macedonia flag “three Ts” (trade, technology, tourism) and target doubling bilateral trade by 2030, with textiles listed among India’s exports. Industry Finance: Trident Limited reports Q1 FY27 net profit up 13% YoY to ₹158 crore, supported by textiles and paper performance. Trade Shock Watch: Canada faces new 50% US tariff moves that include textiles among affected goods, adding pressure to sourcing plans. Tech for Circularity: Wool waste is being turned into antibacterial textile finishes, adding momentum to functional, reuse-focused materials.

EU Circularity Push: The EU’s Digital Product Passport registry and testing environment are now live, with textiles included under the Ecodesign for Sustainable Products rules—aimed at easier B2B compliance and better product transparency. Compliance Pressure: A new study warns garment factories in major sourcing hubs can’t yet generate the life-cycle data needed for textile DPPs, putting timelines at risk. Water & Waste Moves: Inditex reset tighter “Care for Water” limits for wet processes and also pledged about €6.5m (2026-28) with Conservation International to protect over 2m hectares of the Amazon. Tech for Textile Waste: Carbios says it has completed an industrial PET biorecycling demo (100 batches) and is now licensing the process to the textile market. Market Signals: Cotton and yarn trade in India stays steady with firm demand in Mumbai and Tiruppur, while China’s polyester prices jumped on feedstock cost pressure. Trade & Exports: Egypt’s apparel and home textile chamber plans a Kenya showroom and logistics hub to boost SME exports across East Africa. Policy & Growth: Bangladesh GDP growth slowed to 2.22% in Q3 FY26, with industrial contraction cited as a key drag.

EU Trade & Human Rights: The European Commission warned Pakistan that continued access to its GSP+ preferential trade scheme hinges on measurable human-rights and rule-of-law improvements, citing regressions and concerns over civil-society space. Circular Fashion Rule: The EU also moved to ban the destruction of unsold clothes and footwear, pushing brands toward resale or donation. Bangladesh RMG Tech Push: At the BAYLA Future Summit 2026, industry leaders urged faster AI and automation adoption and a shift to higher-value apparel as Bangladesh prepares for post-LDC competition. India Textile Growth Outlook: A report says India’s textile sector is entering a multi-year upcycle driven by China+1 and FTAs, but export gains will depend on productivity and execution. Textile Chemicals Expo: Colour & Chem Expo 2026 in Lahore drew 350+ exhibitors and signed major B2B deals, with digital textile printing also in focus. Solar for Textiles: Mafatlal Industries commissioned a 4 MWp captive solar project at its Nadiad unit to cut energy costs and emissions. Resale Goes Mainstream: Bain & Co. says secondhand apparel is now mainstream, with platforms like Vinted and ThredUp seeing strong growth.

EU Fibre-Label Crackdown: The European Commission tested clothing and found fibre info often didn’t match the garments, with some products containing cheaper fibres than declared; authorities stopped sales of hundreds of items and flagged weak manufacturer details on many non-EU/EFTA imports. Pakistan Export Slide: Pakistan’s textile and clothing exports rose slightly in FY but fell sharply in June, wiping out much of earlier gains and leaving the sector more exposed as other exports weakened. India Cotton Yarn Watch: North India cotton yarn stayed steady as mills tried to hold prices, but buyers remained cautious amid garment export uncertainty and tariff worries. Sustainable Denim Deal: Advance Denim and Avalo announced a multi-year partnership to cut water use in denim by combining factory dyeing savings with AI-driven cotton farming that uses fewer resources. UPI–Bizum Push: India and Spain agreed to advance technical talks for UPI–Bizum interoperability, with textiles listed among priority collaboration areas. EU Unsold Clothes Ban: A new EU rule now bars large firms from destroying unsold clothing and footwear, pushing resale, donation, reuse, or repair. PFAS Focus: A new guide highlights the shift away from “forever chemicals” and what textile makers serving the US need to know. India Cotton Sowing Drop: Weak monsoon conditions sent India’s cotton sowing to a multi-year low, raising output concerns for the coming season. Bedding & Home Textiles: Harbor House Living unveiled a refreshed sheets and pillowcase line, while a separate consumer roundup points to more frequent washing needs for household fabrics.

EU Fashion Waste Crackdown: New EU rules now stop large companies from destroying unsold clothes and shoes, pushing them to resell or donate instead, with limited exceptions for damaged or unsafe items. Circular Nylon Push: Lululemon-backed Syntetica secured a $30M Series A to recycle mixed Nylon 6 and Nylon 6,6 from textile waste in one process, turning it into pellets for later yarn production. Textile Innovation Funding: The US NSF renewed support for NC State’s Textile Innovation Engine with $16M, backing projects from turning used uniforms into new yarns to making bio-based feedstock from cotton textile waste. Handloom Revival Plans: Bangladesh’s textiles and jute state minister said policy work will focus on grassroots weavers’ needs, including credit access, yarn prices, and marketing hurdles. Bangladesh Garment Productivity Boost: VisionSpring and industry partners are expanding access to low-cost reading glasses for garment workers, aiming to improve speed and reduce errors. Bangladesh Jute Incentive Dispute: The Bangladesh Jute Association asked for a ban on jute sliver exports, alleging mills use incentives meant for other products to the detriment of farmers and the sector. Hyosung Bio Spandex Scale-Up: Hyosung TNC showcased regen™ BIO Spandex made from sugarcane, targeting broader adoption for intimate apparel and stretch performance. Bangladesh TVET Skills Focus: Ghana highlighted TVET’s role in jobs and sustainable development during a graduation for trainees in textiles-linked vocational pathways. Bangladesh Cotton Trade Update: Egypt reported $185.9M in cotton exports over the first 10 months of 2025/26, with volume up year-on-year and key destinations in Asia.

EU Fashion Rules: From 19 July 2026, large EU firms can’t destroy unsold clothing and footwear. They must resell, donate, repair or recycle instead, with some exceptions for unsafe or unusable goods—another push toward circular fashion. Labour & Retail: Starbucks Korea workers have formed the country’s first franchise coffee union, citing low pay, understaffing and heavier workloads after the “Tank Day” promotion sparked public backlash. Bangladesh Jute Policy: The Bangladesh Jute Association wants a stop to jute sliver exports, saying mills use incentives to bypass raw jute export curbs. India Textile Outlook: A 360 One Capital report says India’s textile sector is entering a multi-year upcycle on China+1 and trade deals, but export gains hinge on execution, productivity and compliance. Circular Tech: RE&UP becomes a Certified B Corp, reinforcing its textile-to-textile recycling push. Investment Signals: Chhattisgarh tops India’s CRISIL-NITI Aayog Investment Friendliness Index 2026, with textiles among sectors seeing proposals. Textile Expansion: China’s Huarun Tex plans a $30m yarn and woven fabric project in Bangladesh’s BEPZA zone, targeting 580 jobs.

Bharat Tex 2026 Momentum: PointAI and Gokaldas Exports unveiled an AI-powered virtual trial standee at the show, plus a consumer app “My Wardrobe” launching in Aug 2026 across India, Japan and Singapore, aiming to let shoppers create a digital twin and try garments in real time. Microplastics & Textiles: A new modelling discussion highlights how airborne microplastics are hard to measure, with textiles—especially synthetic fibres—flagged as a major indoor source, while another study warns polyester fibres can dominate Arctic pollution and amplify warming loops. Wearable Tech: Engineers demonstrated flexible integrated circuits built directly onto thread, pointing toward clothing that can act as health monitors without bulky electronics. Cotton Supply Push: Bangladesh plans to boost domestic cotton via free hybrid seed, fertiliser and pesticide distribution, while Pakistan reports cotton arrivals up 77.3% at ginning factories but warns of weather and input-cost risks. Circularity Moves: Rieter and Recycling Powerhouse expand textile recycling scale-up, targeting certified recycled yarns via a franchise network. Heritage Spotlight: Ajrakh block-print craft got global attention as Christopher Nolan wore a custom Ajrakh silk tie at The Odyssey premiere.

Bharat Tex 2026 Momentum: India’s flagship textile fair in New Delhi pulled in 6,000+ international buyers from 130+ countries and 1.3 lakh trade visitors, with 28,000+ B2B meetings and ₹14,300 crore in investment commitments—showcasing the full value chain from fibre to handlooms. Bangladesh Textile Expansion: Huarun Tex will invest $30m at BEPZA’s Mirsharai zone to produce 24,000 tonnes of yarn and 20m metres of grey woven fabric annually, creating 580 jobs. Circular & Safer Textiles Leadership: bluesign appointed Hanane Taidi as CEO to steer the next phase of responsible textile production and compliance. Fashion Materials Push: Lauren Sánchez and Jeff Bezos’ Bezos Earth Fund pledged $34m (₹327 crore) for research into next-gen, lower-impact textiles. Design Protection for Textiles: Oman highlighted rising industrial design registrations, including textiles and clothing, as a driver for innovation and export opportunities. EU Policy Shift: EU bans destruction of unsold clothes and footwear from July 19, tightening compliance for brands. Heritage Textiles Spotlight: Leyla Aliyeva attended a Budapest exhibition linking Azerbaijani carpets from tradition to contemporary art.

Karachi Security Push: PHMA urged immediate rollout of the Karachi Safe City Project, saying smarter, tech-led policing is key to cutting crime and boosting investor confidence in Pakistan’s textile hub. Faisalabad Industry Pressure: Pakistan Business Forum named new Faisalabad office-bearers while highlighting energy costs, high financing rates and regional competition squeezing export-focused textile firms. Nigeria Textile Revival: Federal and Kaduna state officials unveiled a roadmap to rehabilitate textile assets like the Kakuri hub, improve cotton supply and financing, and cut import dependence. Bharat Tex Momentum: India’s Bharat Tex 2026 generated about $2.8bn in business enquiries and ₹14,300 crore in state textile investment commitments, with major job creation plans across Karnataka, Bihar and others. Trade Deal Tailwinds: Coverage around the India-UK FTA points to textiles and garments among the duty-free beneficiaries, aiming to lift export competitiveness. Bangladesh Port Disruption: Apparel exporters demanded emergency support after Chattogram Port flooding disrupted shipments and threatened further order losses. Madewell Recall: Madewell recalled about 12,000 women’s sweaters over burn-hazard flammability noncompliance. Cashmere Data: Textile Exchange released a cashmere life-cycle study finding similar climate impacts for nomadic grazing vs farmed systems, with extreme weather driving higher impacts.

EU Circular Rules: From July 19, large EU firms will be barred from destroying unsold clothes, accessories and footwear, pushing resale, repair and reuse instead. Sri Lanka Trade Shock: Sri Lanka has gazetted an immediate ban on importing goods made with forced labour after the U.S. threatened a 12.5% tariff under Section 301, with importers now required to submit certified compliance documents. India–EU Industry Coordination: CITI and EURATEX launched an EU–India Textile and Apparel Dialogue at Bharat Tex 2026 to monitor the India–EU FTA rollout, tackle rules-of-origin and customs friction, and share sustainability best practices. Bharat Tex Debate: Exporters criticized Bharat Tex’s merged format, saying the event’s retailer-heavy setup diluted buyer quality versus the former IIGF model. Recycled Fibres Push: Recover teamed with Turkey’s Ünteks to scale circular knit fabrics using at least 20% recycled cotton for everyday apparel. Nylon Recycling Funding: French startup Syntetica raised $30m to recycle mixed nylon grades, aiming to expand recycled nylon’s still-small market share. Ghana Textile Revival: President Mahama said processes are underway to revive Volta Star Textiles, including a selected investor and a Benin cotton MoU. Bangladesh World Cup Jersey Pride: Bangladesh is producing official World Cup jerseys and sports apparel for global brands, highlighting the RMG sector’s push into higher-value sportswear.

Pakistan–EU Trade: The European Commission’s latest GSP+ report says Pakistan stayed the EU’s top beneficiary in 2024, with €7.5bn in exports getting preferential tariff access and a 95.1% utilisation rate, with textiles and clothing among the biggest gainers. Compliance Pressure: The EU also flagged “grave concerns” over human-rights implementation and urged Pakistan to reverse negative trends from 2023–2025 to protect continued GSP+ eligibility. Pakistan Home Textiles Investment: Dutch home textile firm The Beddinghouse plans a permanent corporate office in Lahore and a “Circular Dreams” initiative to turn post-consumer textile waste from the Netherlands into recycled yarns and finished goods via Pakistan’s manufacturing ecosystem. Ghana Textile Revival: President Mahama announced a strategic investor and plans to secure cotton from Benin to modernise Volta Star Textiles, alongside a new 24-Hour Economy Market in Juapong aimed at jobs and value-chain growth. India–UK CETA Boost: India–UK CETA took effect on July 15, cutting tariffs for labour-intensive sectors including textiles and apparel, with officials expecting sourcing demand to rise for regional fabrics.

India-EU Trade Boost: Bharat Tex Trade Federation and Première Vision SA signed an LoI to help Indian manufacturers, especially MSMEs and first-time exporters, connect with European buyers via PV Paris, with a focus on innovation, sustainability and design. India-UK CETA Takes Effect: The India-UK Comprehensive Economic and Trade Agreement came into force, promising tariff cuts and deeper cooperation; early impacts for consumers may include cheaper premium Scotch, cars and select goods, while exporters gain major market access. Textile Policy Push (Ireland): Ireland published a draft delivery plan for a national textile EPR scheme, aiming for collection, sorting, reuse and recycling ahead of an April 2028 deadline. Circularity & Standards: NIST invited sorting facilities to use a new RGTM 10279 fibre test material to benchmark textile sorting and improve recycling outcomes. Market Watch (India): Delhi cotton yarn prices rose on upstream cost pressure, while demand stayed average; Ludhiana saw steadier yarn with improved downstream activity. Bharat Tex 2026 Roadmap: Textiles Minister Giriraj Singh unveiled the “India Textiles & Apparel CXO Blueprint 2030” targeting $100bn exports by shifting to capability competitiveness through circularity, traceability and AI. Local Promotion (Malaysia): KPDN partnered with Kuala Lumpur Fashion Week under the JOM MALAYSIA movement to spotlight Malaysian-made products on a global fashion platform.

India–UK CETA in force: The trade pact and social security deal kicked off on July 15, with India flagging off $140m in day-one shipments and granting zero duty to nearly 99% of Indian exports—textiles, leather, footwear and marine among the key beneficiaries. Bharat Tex 2026 momentum: Day 2 of the fair spotlighted state-led textile investment and partnerships, with Uttar Pradesh and Maharashtra pitching ecosystems for apparel, handloom and technical textiles. California textile recycling law: California’s SB 707 starts rolling out an extended producer responsibility model, shifting recycling costs from taxpayers to brands via producer fees. Forced-labour import ban debate: India’s July 13 notification banning forced-labour imports has reignited trade-policy scrutiny ahead of possible US tariff action. Bangladesh EPZ push: BEPZA reported 2.2% export growth to $8.41bn in FY26 and record $718m investment proposals, including textiles and fashion accessories. Local circularity moves: Delhi’s Arpan Kendras expanded to donate unwanted garments across metro stations, supporting reuse and collection.

India-UK CETA Launch: The India-UK Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention took effect July 15, cutting tariffs for 99% of Indian exports and giving labour-intensive sectors like textiles and apparel a major cost boost, with UK buyers reportedly stepping up joint planning with Indian suppliers. Circular Textiles Push: Pact and Plan B Circular are scaling textile-to-textile (T2T) recycling via Project Re:claim, converting polyester textiles into recycled PET pellets ahead of expected EU rules in 2028. Bangladesh RMG Pressure: A labour-rights report warns of a growing crisis in Bangladesh’s ready-made garment sector, citing thousands of job losses and factory closures in early 2026. Bangladesh Bank Governance: Bangladesh Bank dissolved Al-Arafah Islami Bank’s board and restored founding sponsors to the board after conditions improved. Odisha Textile Expansion: Odisha says dozens of textile firms have signed MoUs and begun land moves, aiming to build a faster new textile base. Tech & Research: NSF renewed support for North Carolina’s Textile Innovation Engine, backing projects from recycling uniforms into yarn to sensor-enabled safety materials. EU Waste Rules Watch: Portugal’s footwear industry expects the EU ban on destroying unsold clothing and shoes to shift brands toward smaller, more frequent orders—potentially benefiting local manufacturers.

Bharat Tex 2026 Export Push: India’s textiles minister Giriraj Singh says the New Delhi fair is helping small entrepreneurs break into export markets, with buyers from 130 countries and participation from 160 nations. EU Circularity Rules: The EU’s July 19 ban on destroying unsold apparel and shoes could boost limited-run fashion and small shoe firms by pushing more deadstock and resale-ready goods into the market. Supply Chain & Compliance Pressure: India has amended its foreign trade policy to bar imports of goods made with forced labour after a US Section 301 probe, raising stakes for textile and apparel sourcing. Textile Innovation & Materials: Gherzi Textil Organisation expands and renames its North American arm to Gherzi Americas, while Cellsense scales algae- and cellulose-based bio-embellishments to replace plastic-heavy fashion finishes. Risk on the Factory Floor: Bavarian textile finisher ZEGO files for insolvency after a cyberattack shut production for nearly six weeks. Policy Watch: Connecticut PFAS rules now cover apparel, carpets/rugs, textile furnishings and more, with labeling duties starting July 1, 2026.