Industry leaders unite at inauguration

The 5th edition of the Fabrics, Accessories & Beyond (FAB) Show 2025, hosted by the Clothing Manufacturers Association of India (CMAI), opened its doors at the Bombay Exhibition Centre in Goregaon East, Mumbai.

The show was inaugurated by prominent industry figures, showcasing the collective strength of India’s fashion and apparel sector. Supported by the Government of Maharashtra and The Southern Gujarat Chamber of Commerce & Industry (SGCCI), the event highlights India’s growing role in global textile sourcing.

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Guests of Honour included Jitendra Chauhan of Jade Blue, Saurabh Sharma of Juniper Fashions, and sourcing heads from Raymond, Pantaloons, and Kewal Kiran Clothing Ltd.

The Curtain Raiser featured Sanjay Savkare, Hon’ble Minister of Textiles, Maharashtra, who emphasized the state’s vision of establishing a mega textile park in collaboration with CMAI to bring the entire value chain under one roof.

Chhattisgarh was named the 'Partner State', and an MoU will be signed during the event between the state government and CMAI to establish a facilitation centre. The Hon’ble Chief Minister of Chhattisgarh, Vishnu Deo Sai, will attend the show on April 23 for the signing.

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Sustainability and innovation in focus

Spanning 200,000 square feet, FAB Show 2025 features over 250 exhibitors and anticipates over 12,000 trade visitors. The event provides a dynamic platform for manufacturers, designers, sourcing heads, and retailers to explore innovative materials, strike collaborations, and gear up for future fashion cycles.

A key attraction is the Sustainability & Circularity Pavilion, supported by CEE and GATS, which includes over 20 vendors offering eco-friendly solutions.

The event theme, deeply rooted in sustainability and circularity, aligns with Earth Day and aims to spark responsible manufacturing and sourcing practices.

Naveen Sainani, Hon Gen Secretary & Chairman of the FAB Show, stressed that sustainability is no longer optional. The exhibition includes dedicated knowledge sessions on sustainable trims, packaging, decarbonization, and textile waste management.

FAB Show also reflects CMAI’s ongoing commitment through SU.RE (Sustainable Resolution), India’s largest voluntary sustainability initiative in the apparel sector. Led by CMAI in partnership with Reliance Brands, the UN in India, and the Ministry of Textiles, SU.RE aims to guide the fashion industry toward a cleaner, circular future.

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Powerful industry collaborations and knowledge sharing

The event has attracted representatives from over 15 leading apparel associations across India, including Tiruppur Exporters Association, Noida Apparel Exporter Cluster, and South India Hosiery Manufacturers Association. An exclusive Surat Pavilion curated by SGCCI and participation from Ichalkaranji-based manufacturers introduced by ISFMA further elevate the regional representation.

FAB Show 2025 also features business networking sessions and fashion shows on April 22 by key exhibitors. A series of thought-provoking panels and keynotes are being held on topics such as AI-powered apparel business transformation, value chain sourcing strategies, and the evolving fashion ecosystem.

CMAI dignitaries at the inauguration included President Santosh Katariya, Chief Mentor Rahul Mehta, and other senior office bearers. With its wide participation, innovation-driven exhibits, and sustainability-first mindset, FAB Show 2025 positions India as a reliable and future-ready sourcing hub in the global apparel industry.

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The rapid growth of fast fashion in India, due to factors like low-cost imports, is casting a long shadow over the country's established textile and retail sector. While offering seemingly affordable and trendy options to consumers, this influx presents a complex web of commercial consequences that extend far beyond immediate cost savings.

Examining the dynamics at play reveals a significant disruption to domestic manufacturing, shifts in retail practices, and a growing trade imbalance.

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An uneven playing field

With a heritage spanning centuries and employing over 45 million people, the textile sector contributes significantly to the nation's GDP and export earnings. However, the arrival of imports, often priced at almost 50 per cent lower than comparable Indian-made goods, is creating an uneven playing field.

Powerloom factories and small garment units, the backbone of domestic textile production, are struggling to compete. Retailers, driven by the allure of higher profit margins and the demand for cheap, fashionable items, are increasingly turning to foreign suppliers.

The impact is particularly acute on Micro, Small, and Medium Enterprises (MSMEs), which traditionally formed a crucial segment of the domestic supply chain. These businesses, once thriving on supplying affordable, locally produced clothing, are now facing closures or significant scaling down, leading to widespread job losses in key textile hubs across Gujarat, Tamil Nadu, and West Bengal.

For example, the powerloom clusters in Maharashtra, once vibrant hubs of textile production, are facing immense pressure due to the influx of cheap synthetic fabrics and ready-made garments, particularly from China.

Small powerloom owners are struggling to find buyers for their products as retailers opt for cheaper imported alternatives.

This has led to significant financial distress, closure of units, and migration of skilled labor to other sectors. The lack of government support and the inability to compete on price with mass-produced imports are pushing this traditional industry towards decline.

The Clothing Manufacturers Association of India (CMAI) has voiced serious concerns about the "serious threat to employment" posed by escalating apparel imports, a sentiment echoed by a parliamentary panel in 2018, which warned of India transforming into a nation of "importers and traders" at the expense of its manufacturing base.

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Growing trade deficit

The trade deficit figures paint a stark picture of this growing reliance on foreign-made apparel. In the fiscal year 2023-24, India's apparel imports surpassed $8.5 billion, with China alone accounting for nearly 40 per cent of this figure. This creates a paradoxical situation where India, despite being a major textile exporter globally, witnesses its domestic market increasingly dominated by foreign goods.

This dependence directly contributes to a widening trade deficit. India's overall trade deficit with China reached a record $85 billion in FY2023-24. Each dollar spent on importing cheap clothing adds to this deficit, placing downward pressure on the Indian rupee and straining foreign exchange reserves over time.

RMG influx a growing concern

The apparel market is witnessing a rise in the import of ready-made garments, encompassing both premium and fast fashion categories. While catering to diverse consumer preferences, this influx poses a direct challenge to the competitiveness and viability of domestic apparel manufacturers. Data indicates a consistent upward trend in apparel imports, signaling a growing reliance on foreign production.

Table: India's apparel imports ($ bn)

What’s more, the dominance of cheap imports can stifle the growth and competitiveness of domestic manufacturers in the long run. As Indian brands and manufacturers lose market share within their own borders, they are forced to operate at lower production scales. This, in turn, increases their per-unit costs and limits their capacity to invest in crucial areas like research and development, technological upgrades, and skill enhancement.

Consequently, their ability to compete effectively in the international export market is also undermined, creating a vicious cycle of decline.

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The impact of premium vs. fast fashion imports

The commercial impact of apparel imports varies depending on the category.

Premium apparel: Imports of high-end and luxury apparel cater to a niche segment of the Indian consumer market. While these imports contribute to the trade deficit, their direct impact on the mass-market domestic manufacturers might be less pronounced. However, they do create competition for Indian designers and brands aspiring to capture the higher-value segments.

Fast fashion (cheaper goods): The influx of low-cost, fast fashion items, predominantly from countries like China and increasingly through Free Trade Agreement (FTA) routes like Bangladesh, presents a more significant threat to the domestic manufacturing industry. Their competitive pricing, often achieved through economies of scale and lower production costs, makes it exceedingly difficult for Indian MSMEs to compete.

While the allure of low prices attracts consumers, the long-term commercial implications for India's textile and retail sectors are significant. The erosion of domestic manufacturing capacity, the loss of livelihoods, and the increasing trade deficit pose substantial challenges to the nation's economic resilience and self-sufficiency.

Addressing this requires an approach that strategically safeguards the interests of the domestic industry without resorting to outright protectionism that could harm consumer affordability and violate international trade agreements.

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The 5th edition of the Fabrics, Accessories & Beyond (FAB) Show 2025, organised by the Clothing Manufacturers Association of India (CMAI), concluded on a high note at the Bombay Exhibition Centre, Mumbai, from April 21 to 23. Supported by the Government of Maharashtra, The Southern Gujarat Chamber of Commerce & Industry (SGCCI), and 15 prominent industry associations, the event marked a major milestone for India’s textile and apparel sector.

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Record participation and international presence

The show hosted over 250 exhibitors and welcomed around 12,000 trade visitors from more than 350 Indian cities, including 1,750 platinum dealers. It also attracted 90 overseas buyers from 23 countries, including the US, Bangladesh, Egypt, UAE, Russia, Portugal, and Nepal. “The FAB Show is not just about business it’s about transformation,” said CMAI President Santosh Katariya. “The response reaffirms our role in driving innovation, sustainability, and collaboration in the industry.”

Highlighting the global trade shift, Rahul Mehta, Chief Mentor, CMAI, added, “With recent US tariffs on key sourcing nations, India is uniquely positioned to become a global hub. FAB 2025 came at the perfect time to showcase our end-to-end capabilities.”

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Sustainability leads the agenda

Sustainability remained the core theme throughout the event. A dedicated pavilion showcased eco-conscious innovations from over 20 vendors, while a fashion show highlighted collections crafted using environmentally responsible materials and methods. “Sustainability wasn’t just a theme; it defined the entire experience this year,” said FAB Show Chairman Naveen Sainani. “From pavilions to knowledge sessions, the event was curated to inspire responsible manufacturing and industry-wide change.”

Exhibitors reflect on market trends and show success

Participants across India shared positive feedback. Dhaval Desai, Vice President, Ichalkaranji Shuttleless Fabrics Manufacturers Association (ISFMA), said, “This was a rewarding experience with great footfall and a strong business focus.” Sunny Jain of Girnar Fabrics noted, “Buyers are demanding shorter lead times and integrated capabilities. FAB was the perfect platform to showcase that.”

Divesh Gulecha from Manidari Silk Mills, a first-time participant, said, “We saw a strong shift toward placement digital prints and embroideries FAB helped us connect with the right buyers.” Lakshman Shinde of Jindal Textiles added, “The focus is clearly on sustainable, innovative fabric concepts. We’re aligning our offerings with global trends.”

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Chhattisgarh pushes investment agenda, knowledge sessions enrich insights

A highlight of the show was the MoU signing between CMAI and the Government of Chhattisgarh, with Hon’ble Chief Minister Shri Vishnu Deo Sai attending as Chief Guest. As a State Partner, Chhattisgarh showcased its textile manufacturers and MSME-friendly policies under the “Business Made Easy” initiative.

The show also featured a series of insightful knowledge sessions covering key themes such as sustainability, certification, AI, and business recalibration. Expert-led panels and talks including sessions by Ragini Verma, Mayur Suchak, and Vishal Trivedi offered strategic guidance to navigate the changing textile landscape.

The 5th edition of FAB Show reaffirmed CMAI’s vision to make India a leader in sustainable, tech-driven apparel manufacturing while supporting policy initiatives, global sourcing shifts, and the spirit of innovation.

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At a time when prices are increasing across every sector—from food to fuel, from metals to medicine—there remains a surprising outlier in India’s economic landscape, the garment and hosiery industry, opines Rikhab Chand Jain, Chairman, T.T. Group and Former President of Federation of Indian Hosiery Industry (FOHMA) in a signed article “Why are the prices of Garments and Hosiery not increasing?” 

He says that while consumers are paying more for everyday essentials like tomatoes, chocolates, and school fees, the price tags on clothes remain stubbornly the same. It’s a quiet but significant anomaly with deeper implications than most realize.

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“Over the last 2-3 years, the cost of production has increased, but garment and hosiery business owners, producers, and manufacturers have not raised prices and are not raising them either,” Jain points out. Some have even reduced them out of sheer necessity. This is not a gesture of generosity—it’s a symptom of a fiercely competitive market that’s forcing businesses to prioritize survival over profit.

The industry that refuses to pass the buck

While the public hears daily about inflation from politicians, media, and traders, the apparel sector appears immune, at least on the surface. The contrast is striking. Jain quotes data and says, fuel and power prices rose by 15.15 per cent, grains by 15.45 percent, and even petrol and diesel by 23.79 per cent in 2022-23. Yet, textile production saw a 2.14% decrease in prices over the same period.

Table: Inflation index in 2022-23 

This makes garments one of the few products in India to become cheaper, not costlier, over time—despite the fact that costs for electricity, rent, labor, packaging, and transport have all increased significantly. Jain critically questions “Have the prices of machinery, spare parts, local municipal taxes, and transportation costs not increased?” The answer is clear—they have.

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Value hidden in plain sight

Jain argues even the most basic clothing items—like vests, underwear, handkerchiefs, and towels—cost less than their Khadi counterparts, despite Khadi being subsidized by 25 per cent to 33 per cent. Ironically, in premium hotels like the Taj Mahal, laundering these inexpensive garments often costs more than buying them new.

This odd economic situation underlines how deeply undervalued this industry has become. The cause: intense competition and chronic undervaluation. He asks, “Despite overstocking and inventory, have the costs not risen? Have labor wages not increased? Have the prices of electricity, rent, transportation, packaging materials used in hosiery and garment industries not increased?

Have the prices of machinery, spare parts, local municipal taxes, and transportation costs not increased? If every industry and business owner is facing these rising costs, why haven’t the prices gone up? What is holding them  back?” The garment sector is one of the few where price increases have been avoided for fear of losing customers, especially as demand continues to rise, not just in urban areas, but also among lower-income groups in villages across India.

A race to the bottom and its hidden cost

While consumers may feel grateful for this price stability, the consequences for the industry are dire, argues Jain. Profit margins have plummeted to just 1–2 per cent, and with inflation averaging around 8 per cent annually, many businesses are already operating at a loss in real terms. In contrast, other industries hope for 5 per cent profit increases, which still fall short of inflation-adjusted growth.

Such minimal profits mean that employee wages remain stagnant, and suppliers, stakeholders, and workers all suffer. When their real income declines, so does their ability to contribute to the economy, be it through spending on food, housing, education, or healthcare. The broader impact is a drag on India’s economic growth and development.

If this situation persists, younger generations may be discouraged from entering the industry, which is already viewed as low-margin and high-risk, Jain says. More profitable and emerging sectors may appear far more attractive, accelerating a potential decline in India's textile backbone.

A dangerous policy shift on the horizon

Adding to the industry's woes is a proposal to increase GST on garments priced above Rs 1000 or Rs 1500. For a sector already struggling with razor-thin margins, this move could be disastrous. Industry leaders have urged the government to reconsider, arguing that higher taxes under current circumstances would lead to widespread closures and job losses.

As the article emphasizes, cutthroat competition has destroyed other sectors before—notably the sari business in Surat, where aggressive marketing and oversaturation led to consumer confusion and the eventual collapse of many brands. A similar fate may await the hosiery and apparel sector unless corrective steps are taken.

Jain writes, “In textiles, instead of an increase, the prices decreased by 2.14 per cent in the last 22-23 years.” So, are workers and owners in the textile, hosiery, and garment industries unaffected by the rising inflation in food, housing, school fees, hospital bills, transport, and travel? Have the rates of sewing, knitting, dyeing, and processing not increased?  

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The bigger picture

The ripple effects of an underperforming textile industry are immense. From laborers and machine operators to factory owners and local communities, millions depend on this sector. If profit continues to erode, the country risks not only a decline in textile production but also a loss in domestic demand, employment, and export strength.

The path forward demands unity and action. Industry associations, business owners, and policymakers must come together to address the structural weaknesses. Rational pricing, fair taxation, and a focus on sustainable growth are essential for the survival and revival of this vital sector.

As the article puts it, “Victory lies beyond fear.” The textile, garment, and hosiery industries must adapt, innovate, and advocate to reclaim their rightful place in India's economic future. What’s at stake is not just an industry—but the livelihoods of millions, and the fabric of the nation itself.

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