Bangladesh’s Ready-Made Garment (RMG) industry, the long-standing backbone of the nation’s economy, is now operating under the shadow of a serious new fiscal threat from the European Union. A recent study by the Centre for Policy Dialogue (CPD) reveals that Bangladeshi apparel exports could face an additional carbon tax of 4.8 percent starting in 2030 if the industry fails to significantly decarbonize. This measure is part of the EU’s Carbon Border Adjustment Mechanism (CBAM), a policy designed to curb greenhouse gas emissions across global supply chains, with the textile sector expected to fall under its scrutiny by the end of the decade.
The Sri Lankan apparel sector, a cornerstone of the island nation's economy, is currently weathering a perfect storm of global and domestic headwinds. Provisional data for the first quarter of 2026 reveals a 5.4 percent year-on-year contraction in total shipments, a downturn fueled primarily by cooling consumer sentiment in the Eurozone and North America. With these two regions accounting for over 80 percent of the country’s apparel revenue, the impact of high inflation and elevated interest rates in Western economies has hit home with significant force, signaling a challenging period for the industry's recovery.
India’s textile industry has executed a massive strategic procurement play in 2025, capitalising on a global price slump to fortify its raw material reserves. According to the latest data from sourcing intelligence tool TexPro, India’s cotton imports (HS code 5201) surged to a staggering $1,927.716 million this year. This represents a 92.50% increase in value compared to 2024. However, the most striking figure lies in the sheer scale of physical goods; import volumes skyrocketed by 130%, reaching 1,036.041 million kg, effectively dwarfing the 451.424 million kg imported just a year prior and even surpassing the high-water marks of 2022.
The Sri Lankan textile and apparel sector reached a pivotal milestone in its journey toward industrial modernization with the official inauguration of a new multi-purpose training facility at the Sri Lanka Institute of Textile & Apparel (SLITA) in Ratmalana. This grand opening represents more than just an expansion of physical infrastructure; it serves as a cornerstone for the nation’s ambition to cultivate a world-class, highly skilled workforce. With a substantial investment of SLR 520 million (approximately $1.66 million), the project underscores the government’s strategic commitment to reinforcing the country’s primary export engine through advanced technical education.
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