Understanding that they'll be reducing size of skirt, for instance (6,2)

I believe the answer is:

taking in

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'understanding that they'll be reducing size of skirt for instance' is the definition.
The answer and definition can be both related to thinking as well as being present participle verbs.
Perhaps you can see an association between them that I don't see?

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I've seen this clue in The Irish Times.

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