Prime Minister Narendra Modi has urged Indian textile industry to rise to global standards. The Government has been taking comprehensive measures in an integrated manner focused on creating the right ecosystem, enhancing ‘ease of doing business’ and capacity-building through skill development.
He said that to provide an impetus to the textiles industry, the Government has implemented a series of measures to upscale physical infrastructure to global standards.
In its message for the Confederation of Indian Textile Industry (CITI) – Global Textiles Conclave 2021, he stated that the contribution of the textiles sector is vital towards building an Aatmanirbhar Bharat.
Integrating the sector with the latest technology is one area where the Government is particularly focusing. The textiles industry must continue to innovate, as well as research extensively to enable it to tap new markets and deepen the niche in diversity, manufacturing and design.
Inaugurating the event, Minister of Textiles, Smriti Irani appealed to the global investors to come and invest not only in the recently announced seven mega textile parks but also in the currently operational park and capitalise on the inherent advantages of textile industry of India.
She urged the MSME textile players to focus on adopting the global standards so that they can partner with the global sourcing giants in fulfilling the demand of international players.
She further added that India is going to be one of the largest consumers of technical textiles especially Buildtech, Meditech and Oekotech.
The Minister insisted that ‘sustainable textiles’ is the success mantra for the future growth of the textile industry.
Source: Apparel Online
The government is looking to ensure that India turns self-reliant in the silk sector in the next two years, according to textiles minister Smriti Irani, who recently said under the Silk Samagra Program, the government dedicated over ₹2,000 crore for the sector. She hoped Karnataka gets ideas and proposals to make India self-reliant in silk.
She was addressing the inaugural session of the Karnataka Vastra Tek—Apparel & Textile Conclave organised by the state department of handloom and textiles in association with the Federation of Indian Chambers of Commerce and Industry Karnataka State Council.
The minimum support price operations for cotton procurement by the Cotton Corporation of India has touched over ₹359 crore in the state, she said.
The latest handloom census has brought to light that over 50,000 weavers in Karnataka are looking at new digital opportunities to expand their markets.
Source: Fibre2Fashion News
India’s economy looked ready to leave a sharp downturn behind in the new year, as business and consumer activity showed more signs of gathering momentum in January.
Two of the eight high-frequency indicators tracked by Bloomberg News improved last month, while five held steady and one deteriorated. That, for now, kept the needle on a dial measuring overall economic activity unchanged at 5 -- a number arrived at by using the three-month weighted average to smooth out volatility in the single-month scores.
Gathering Pace
Business and consumer demand saw momentum in January
The January reading points to a solid start for the new quarter, building on nascent gains seen in the October-December period. Official data on Friday is likely to show that India exited a recession in the final three months of 2020, with economists in a Bloomberg survey forecasting a gross domestic product expansion of 0.5% from a year ago.
Business Activity
Activity in India’s dominant services sector expanded for a fourth straight month in January, with the pace of new work and and business activity both quickening from a month ago. The Markit India Services Purchasing Managers’ Index came in at 52.8 from 52.3 a month earlier. A reading above 50 indicates expansion.
More Business
Domestic and overseas demand hold up for Indian companies
Manufacturing activity also continued to strengthen, with companies ramping up production at the quickest pace in three months, thanks to higher sales and new export orders. Worryingly though, both input and output price pressures gathered steam and which will likely prevent headline inflation from easing sharply in coming months.
Read: India’s Rate Setters Express Worries About Underlying Inflation
Exports
Exports regained more ground last month, backed by healthy performance of sectors such as engineering goods, gems and jewelry, iron ore and textiles.
Shipments Rise
Indian exports picked up pace in January
Consumer Activity
Passenger vehicle sales, a key indicator of demand, rose nearly 11.4% in January from a year ago, with two-wheelers and utility vehicles witnessing robust demand. Surveys from the Reserve Bank of India this month showed that consumers perceived the current economic situation as being better than it was in November when a similar survey was conducted, and they expect improvement in their conditions in the coming year.
Sluggish Demand
Year-on-year bank credit up a tad
Demand for loans picked up a tad in January. Central bank data showed credit grew at around 6.5% from a year earlier. Liquidity conditions were little changed from December when advance tax payments led to a tighter cash position.
Industrial Activity
Industrial production rose 1% in December from a year earlier. Production of capital goods rose 0.6%, while infrastructure goods and manufacturing sector expanded in an encouraging end to the October-to-December quarter.
Output at infrastructure industries, which makes up 40% of the industrial production index, contracted 1.3% in December from a year ago, a smaller drop than the 2.6% seen in November. Both data are published with a one-month lag.
Source: The Economic Times
India’s 63 million enterprises translate into only a million formal employers. More than 98% of Indian employers stay dwarf with no access to institutional capital, talent, technology and supply chains. They employ an average of under three employees and are not bound to pay minimum wages, offer social security or provide safe and hygienic working conditions.
This multidimensional problem has deep roots in India’s complex regulatory environment, which levies a ‘formalisation’ tax on employers. This can take the form of over 400 compliances a year that become applicable after formalisation. As a result, there are clear incentives to stay small and informal.
India’s challenge is not to create more enterprises but to nurture existing enterprises. If it could convert just 10% of its 63 million enterprises to formal, 100 million new formal jobs can be created. However, the key binding constraint is high regulatory cholesterol (a universe of 1,536 Acts and 69,233 compliances, which change over 3,000 times a year). Here are some suggestions for ease of doing business agenda for the government.
Constitute a National Compliance Commission: India’s regulations need an urgent review. An empowered commission must be set up to reduce the compliance burden by at least 50%. It should focus on identifying duplication and redundancy among compliance requirements. The commission should remove ambiguity, standardise implementation and simplify record keeping.
Create UEN (Unique Enterprise Number): Indian enterprises deal with multiple identities (PF, ESIC, PAN, CIN, TAN etc.) issued by different central and state departments. There is often no single source of truth to build a corporate profile. This can be resolved with a UEN along the lines of Aadhaar. All departments of the government and financial institutions will register an enterprise based on UEN. It will help create a holistic corporate profile for governance, credit, risk and compliance.
Create enterprise document vault: India needs to go paperless. Managing paper is inefficient, expensive and non-sustainable. The concept of electronic document vault DigiLocker should be extended to enterprises. All documents (licenses / registrations / permissions / consent orders / notices etc) issued to an enterprise will be delivered by government departments to the vault. The documents can be retrieved by inspectors, financial institutions and other government departments upon consent. The UEN-based corporate profile of credit and risk along with an e-document vault will reduce document forgery and fraud, leading to deeper credit penetration and reduce NPAs.
Strengthen commercial courts infrastructure: India’s commercial court system needs an overhaul. It takes 1,445 days to dispose of a commercial case as against 120 days in Singapore. While India ranked 63 in World Bank’s EoDB rankings, it ranked a poor 163rd in enforcing contracts. Millions of commercial cases compete with civil cases for their turn for months in regular courts leading to delays. The government should expedite capacity building (judges, staff, courtrooms, e-hearings, etc) in hubs of economic activity in the country for faster disposal of cases, slashing the turnaround time by at least 50%.
Digitise compliance management: Compliances must go digital. Today, an entrepreneur deals with over 70 different licenses, registrations and approvals (related to entity, land, trade, construction, fire, electricity, labour, environment, weights and measurements etc.) to start his manufacturing setup. An MSME deals with at least 400 compliances annually on an on-going basis.
The process is manual, paper-based and requires physical contact with government officials leading to delays and opportunities for corruption. All compliances should go digital with a vision of creating paperless, presence-less, cashless and faceless systems. This will enhance transparency, accountability and timeliness.
Digitise regulatory updates: With over 3,000 yearly regulatory changes that affect enterprises, India needs a centralised repository of all updates. Currently, they are published on at least 2,233 different websites at union, state and local levels. These changes affect an enterprise’s obligations as they notify changes to dates, duty structures, revisions to forms, penalties, calculations, among others.
The onus is on an enterprise to periodically visit the websites, discover the changes and evaluate applicability. The government needs to create a centralised repository (electronic gazette) of all regulatory changes that impact the enterprise. There should be personalised notifications based on preferences of industry, ministry, department, state, categories and types.
Digitise inspections: An MSME in India can be inspected by as many as 20 inspectors at any time. The current inspection system is manual, paper-based and requires physical contact. The system is so dreaded that it is called ‘inspector raj’ in popular parlance. There is an urgent need to reimagine the current system and replace it with a consolidated, risk-based and digital system with built-in self-certification and third-party inspections.
The last six years have been exciting from an EoDB perspective. India has jumped from 142nd rank in the World Bank EoDB in 2014 to 63rd in 2019. The low hanging fruit has been plucked. The road ahead will need deeper and more impactful reforms at all levels. These reforms will require tougher decisions, laser-sharp focus and greater allocation of resources. I am hopeful that India can get to its destiny of becoming a $10 trillion economy at the end of this decade.
Source: The Financial Express
Increasing activity in the housing and auto sectors along with higher infrastructure spending will, in turn, drive demand in key industries such as steel, oil and gas and cement, said rating agencies Icra and Moody's in a webinar on Thursday.
"A rising preference for personal mobility vehicles, along with the government's new voluntary vehicle scrappage policy, will support automobile demand. In the housing sector, the shift toward flexible work arrangements combined with tax incentives for affordable homes will propel demand,” said Vikas Halan, a Moody's Associate Managing Director in a joint webinar by rating agencies Icra and Moody’s, On India Credit Outlook 2021.
Prevailing low-interest rates and the government's reforms to boost domestic manufacturing will also support corporates' credit profiles, Halan added.
According to ICRA, payment moratoriums, additional funding lines and one-time restructuring options have enabled corporates in stressed sectors like textiles, healthcare and auto ancillaries to successfully navigate the challenging environment.
Despite these improvements, India remains vulnerable to the threat of rising infections and fresh lockdowns, and to the risk of an uneven or underwhelming economic recovery, said the rating agency in a media statement.
“ICRA has maintained a negative outlook on sectors that remain most impacted by the pandemic in the near to medium term, including the aviation, hospitality and retail sectors,” the statement said.
Moody's expects the Indian government will drive infrastructure investment for the next 1-2 years, which will help address infrastructure constraints and support future private investment.
“Traditional infrastructure segments like power and transportation will likely receive the bulk of investments, as will segments with critical infrastructure gaps, such as healthcare, cold chain, water and sanitation, over the next 6-12 months,” the agency said in a media statement on Thursday.
Source: The Economic Times
To establish India as a global trade and investment hub, a report by the UK government and the Confederation of Indian Industry (CII) recently called for exploring free trade agreements (FTAs) with key partners like the United Kingdom, the United States and the European Union (EU).
It suggests setting up a single point of contact for large overseas investors, designing specific policies for champion sectors and introducing differential slab-based incentives as per FDI size.
The report on ‘Foreign Trade & Investment in India: Unlocking Key Opportunities through Strategic Reforms’ analyses policies that affect India's openness with respect to international trade, including tariff and non-tariff barriers and FDI.
The report recommends key policy measures including developing a mechanism to review the effectiveness of single-window systems more regularly and effectively by the chief secretary of the respective states, digitisation and integration of land records, introduction of single online portal with integrated information, notification of ‘fixed term employment’ by all states, and promotion of alternative dispute resolution mechanisms.
UK deputy trade commissioner for South Asia Rhiannon Harries said the UK and Indian governments are already working closely on an enhanced trade partnership, which will help deepen trade ties, remove market access barriers and act as a roadmap for a potential future free trade agreement, a CII press release said.
Source: Fibre2Fashion News
Tamil Nadu has got seven new cluster projects for the development of coir industry.
According to an official of Coir Board, Tamil Nadu has totally nine clusters for coir sector. Two, at Kangeyam and Palladam, were inaugurated two years ago and seven more were commissioned recently. The Board is the nodal agency for the cluster project.
All these clusters have a group of industries that have come together and formed special purpose vehicles. Common facility centres have been established and machinery installed. Apart from the members, other coir industries in these clusters can also benefit.
The products made at these clusters will be exported – directly and indirectly – and also sold in the domestic market through the outlets of the Board
The seven clusters in the State are Dindigul, Tirunelveli, Salem, Dharmapuri, Pollachi, Madurai, and Ethamozhy (Kanyakumari district). While Dharmapuri and Ethamozhy are mini clusters, Pollachi is a heritage cluster, and the rest are major clusters.
The total project for the seven clusters is nearly ₹ 30 crore and about ₹ 21 crore has come as grant. The rest of the cost is invested by the special purpose vehicles. The clusters will make a wide range of products, including coir panels, brooms, brushes, tufted mats, grow bags, peat, coir blocks, geo textiles, and even woven coir mats.
The aim is to promote value addition through the common facilities, the official said.
Source: The Hindu Business Line
Dr. A. Sakthivel, leading apparel exporter and Chairman of Apparel Export Promotion Council (AEPC) is the new President of Federation of Indian Export Organisations (FIEO). He has been elected unanimously.
FIEO is the apex trade promotion organisation in India, which was set up by the Ministry of Commerce, and the private trade and industry segment in 1965.
Dr. Sakthivel has replaced SK Saraf, who is a Mumbai-based businessman. He is taking charge of FIEO at a time when the country’s exports are gradually reviving from the impacts of COVID-19.
This is the second time that Dr. Sakthivel was elected FIEO chairman.
Associated with many prominent leading trade bodies across the India, Dr. Sakthivel was vocal in getting urgent fiscal relief measures from the Government for facilitating industry’s foray into production of Personal Protective Equipment (PPE) and getting the Government redefine the MSMEs and laid emphasis on man-made fibre (MMF)-based garments and medical textiles for the Government to take note of it and announce MMF as one of the key sectors for Production Linked Incentive Scheme.
Source: Apparel Online
Reiterating the government's commitment towards privatisation of PSUs and asset monetisation, Prime Minister Narendra Modi on Wednesday said that the motto of his government is to "monetise and modernise".
Addressing a webinar on the Budget announcements for Department of Investment and Public Asset Management (DIPAM), the Prime Minister asked the private sector to come in support of the government's initiatives proposed in the Budget and help it prepare the roadmap for accelerated growth.
Emphasising on the role of private sector, he said that the Budget also focused on the strong partnership between the private players and the Centre.
"When the government monetises, private sector comes in, along with investment and best global practices," he said.
The funds mobilised through asset monetisation and disinvestment will be used for public welfare measures, he said. He added the Budget has targeted monetising 100 government assets, which would create investment opportunities worth Rs 2.5 lakh crore.
Modi further said that the new policy will go a step ahead from annual disinvestment target and will take a medium-term strategic approach and help in selection of individual companies. This will create a clear roadmap for investment, as per the Prime Minister.
Observing that the government's role is to encourage business enterprises and not to become its owner, he said: "The government has no business to be in business."
He said that the government has to focus on development projects and welfare of the people and should be away from businesses.
The Prime Minister's address comes at a time when the government has re-strategised its disinvestment and asset monetisation policies with clear focus on privatisation.
Modi said that the Budget for FY22 has outlined a clear roadmap for India to move on the "high growth trajectory".
His emphasis on the privatisation policy also gains significance as the renewed push for disinvestment and asset monetisation has received criticism from the opposition who have termed the move as "selling the family silver".
Source: The Business Standard
Finance minister Nirmala Sitharaman on Thursday said the government's privatisation policy of bare minimum public sector presence will mean that the remaining state-owned companies are scaled up and large with a significant presence in their areas of operation.
“In the sense, even if there are one or two or three (PSUs)...it will be a public sector undertaking of a good solid presence,” Sitharaman said at a conference hosted by Indian Institute of Management, Ahmedabad.
She also expressed confidence that the government will be able to meet the Rs 1.75 lakh-crore disinvestment target set in the FY22 budget. “Now, when the appetite is probably better...I've come up with a realistic number. I've not given an overestimated number, so I'm sure to achieve it,” she said.
Fuel tax
Taking note of the high burden of increasing fuel prices on consumers, the finance minister said both the Centre and states have to reduce fuel taxes.
“There's just no hiding the fact that there is revenue there (fuel tax),” she said. “But it's no longer competitive for anyone to say, ‘Centre, you reduce first, then the states will come on board’.”
The Centre and the states would have to meet and discuss any action on this matter, the minister said. “If eventually you want the consumers not to be bearing so much of a burden on this score, it is both the Centre and the states which will have to talk,” she said. “So, when are you going to talk? Yes, I concede that's where action has to be (taken) and let's see what we can do about it.”
Farm laws
Responding to questions on the farmer protests against three recent agriculture reform laws and the Centre’s refusal to bring a legal framework to ensure around minimum support price (MSP), the finance minister said, “Since MSP is not part of the three laws, to come and protest against the three laws and then raise MSP, for me, doesn't add up.”
She also questioned why the issue wasn’t brought up during the Congress administration. “If indeed MSP has to be part of the statutes, given a law-based backing, why wasn't it felt during the ten years of UPA (United Progressive Alliance)?”
Farmers have been protesting at Delhi’s borders and across the country for the past six months against the three farm laws passed during the monsoon session of Parliament last year.
Source: The Economic Times
The Director General of Foreign Trade (DGFT) notified the Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under India-Mercosur PTA and India-Thailand EHSfrom 25th February 2021.
The DGFT informed that the electronic platform for Preferential CoO is being expanded further to add two more FTAs/PTAs to facilitate electronic application of Preferential Certificates of Origin under the given Trade Agreements. The Preferential Certificate of Origin for exports to countries under the following trade agreements i.e. India-Mercosur Preferential Trade Agreement and India-Thailand Early Harvest Scheme shall also be applied and issued from the CoO e-platform with effect from 25th February 2021.
“No manual application for such a CoO should be submitted to an issuing agency from 25th February 2021. Any manual applications submitted prior to the given date may however be processed by the issuing agencies,” the DGFT in the circular said. For these applications under the two Trade Agreements, the e-CoO system shall generate all the existing set of CoO copies besides an additional copy i.e. electronic copy.
The electronic copy shall bear the image signature of the officer and stamp of the issuing agency. The exporter may however get the remaining copies duly ink-signed by the issuing officer along with the stamp of the issuing office.
The paper copies of the CoOs so issued may be collected by post or in person, for any submission to the Trade Agreement’s partner countries authorities.
It is noteworthy for the Indian Exporters to bear in mind the pointers with regard to the process. Firstly, a Digital Signature Certificate (DSC) would be required for the purpose of electronic submission.
The digital signature would be the same as used in other DGFT applications; Secondly, the digital signature may be Class II or Class III and should have the IEC of the firm embedded in the DSC; Thirdly, any new applicant exporter would be required to initially register at the portal.
The password would be sent on the email and mobile number of the IEC holder. In case the IEC holder desires to update their email on which communication is to be sent, the same may be done by using the ‘IEC Profile Management’ service on the DGFT website. Fourthly, once registration is completed, the IEC branch details would be auto-populated as per the DGFT-IEC database.
Applicants are required to ensure that updated IEC details are available in the DGFT system. Necessary steps may be taken to modify the IEC details online, whenever required. Subscribe Taxscan AdFree to view the Judgment
Source: Taxscan News
The Cotton Corporation of India (CCI) has granted a subsidy of Rs 300 per candy to cooperative spinning mills in Maharashtra. The Corporation has also waived-off the security deposit of `2 lakh that the mills have to pay before participating in the e-auction process of the cotton body. The mills, however, say that this is not enough and have demanded a subsidy of Rs 2,500 per candy.
Ashok Swami, chairman, Maharashtra State Co-op Textile Federation (MSCTF) said that the cooperative spinning mills in the state are finding it difficult to purchase cotton at the market rates since they have been in financial distress. “The recession in the textile industry since the past five-six years, higher electricity rates than other states, rising cotton prices and no increase in yarn rates, high-interest rates on bank loans in addition to the trade war between USA and China have adversely affected the yarn business,” Swami said. Of the 150 spinning mills in the state, nearly 45 mills are closed, 70 are active and another 30 mills are in the process of construction.
“Cotton prices have gone up above the minimum support price (MSP) of Rs 5,825 per quintal and are currently ruling between Rs 6,300 per quintal and Rs 6,400 per quintal in the open market.
CCI is currently selling cotton at Rs 47,000 per candy and with transportation charges, it costs mills around Rs 48,000 per candy which is not affordable. Imported cotton attracts a duty of 10% which again is not affordable for mills,” he added. “Cooperative spinning mills are not able to afford these rates and have therefore sought a subsidy of Rs 2,500 per candy. The CCI has granted a subsidy of Rs 300 per candy but this is not enough,” he said.
Of the total of 150 cooperative spinning mills in the state, only 70 mills are currently functional with an installed capacity of 14 lakh spindles daily. The annual cotton requirement is around 12-13 lakh bales and the sales turnover are Rs 2,500 crore annually. The state government has invested Rs 2,500 crore in these mills as shares capital. These mills give revenues to both the central and state government in the form of various taxes of Rs 200 crore to Rs 250 crore annually.
Swami said both the CCI and the state government have agreed to forward the demand of spinning mills for more subsidy to the Centre.
Source: The Financial Express
In what could be seen as a step to incentivise the domestic shipping liners to participate in the strategic sale of the Shipping Corporation of India (SCI), the ministry of finance is believed to be examining the Goods and Service Tax (GST) related anomaly on the cargo import and export service provided by the domestic firms.
According to government sources, the ministry is looking into the matter pertaining to differential tax treatment of Indian and foreign shipping business, which results in higher taxation of the Indian vessel carriers.
A source told BusinessToday.In on condition of anonymity, "DIPAM and department of revenue have discussed the issue. As of now, no formal proposal to correct the GST anomaly on domestic shipping has been sent to the GST Council, which is the apex decision making body on the issue."
Indian shipping companies are subject to 5 per cent GST if an overseas consignor appoints them for import cargo transportation as the place of supply of service is destination of the goods, which is India. If the consignor appoints a foreign shipping line for the same service, GST is not applicable as the shipping company is not registered in India.
In a similar fashion, differential treatment in the tax applicability comes into play even in the case of outbound freight. If a domestic shipping firm provides outbound freight service to an Indian exporter, the company is liable to pay 5 per cent GST. In case the same service is provided by a foreign company to Indian exporter, the place of supply will be the destination of the consignment and hence GST will not be applicable.
Experts believe that the differential tax treatment may serve as a disincentive for the Indian firms wanting to bid for the SCI, while it may be a lucrative option for the global companies.
"The current GST regime favours foreign vessels. This is a point that needs to be corrected. Indian goods are being carried in foreign vessels. If there is a GST regime correction on shipping in terms of a deemed registration on the foreign shipping companies, it can be balanced and there could be a level - playing field. Till then, participating in strategic sale may be lucrative for foreign firms. As far as the Indian firms are concerned, additional taxes are a burden," said V S Krishnan, former member (GST), Central Board of Indirect Taxes and Customs.
On December 22, DIPAM invited expressions of interest (EoI) for the strategic disinvestment of its 63.75 per cent stake in the SCI. The EoI submission deadline has been extended to March 1. According to reports, Great Eastern Shipping, US based Safesea Group, among others, are in race for SCI.
Source: Business Today
As India’s economic fortunes stand at the cusp of a turnaround, a spike in coronavirus cases across its key business centers risks undoing some of the gains.
Data due later today will probably show gross domestic product expanded 0.6% in the three months ended December, after contracting for two consecutive quarters, according to the median forecast in a Bloomberg survey of economists. That will help Asia’s third-largest economy exit an unprecedented recession.
India will become one of the few major economies to post growth in the last quarter of 2020, with any improvement in the economy’s performance inversely tied to a drop in Covid-19 infections. But the nation has seen an uptick in cases over the last few weeks raising the risk of a new round of localised lockdowns.
The state of Maharashtra, which includes the financial capital of Mumbai, warned of lockdowns after the number of daily cases rose to almost 7,000 last week. India overall reported 16,738 new infections as of Thursday, making it the highest number since late January.
A resurgent virus outbreak is “a final hurdle in the race to normal”, said Sonal Varma, chief economist for India and Asia, ex-Japan, at Nomura Holding Inc. in Singapore. It could “disrupt the economic normalisation process in the near term.”
New curbs on movement of people or restrictions on businesses are a risk to the nascent recovery, given that gains in the October-December quarter probably came from the reopening of the economy, which is primarily driven by domestic consumption. The government also boosted spending in the final months of last year to spur growth.
As a result, economists expect the Statistics Ministry to revise its estimate for the fiscal year through March to a contraction of 7% from a steeper 7.7% drop seen previously.
A positive reading will lower the pressure on India’s central bank, which did most of the heavy lifting in the past year through 115 basis points of interest-rate cuts and ensuring liquidity in the financial system. The government has since announced fiscal steps to support the economy, including a near-record borrowing in its latest budget this month.
“The infection caseload in some parts of the country is, however, again creeping up,” Reserve Bank of India Governor Shaktikanta Das said Thursday. “We need to stay vigilant and steadfast, and on our toes.”
Source: The Economic Times
Leading apparel company VF Corporation has been recognised by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of 2021 World’s Most Ethical Companies.
VF Corporation has been getting this recognition since past five years and is the only honoree in the apparel industry to be named this year.
In 2021, 135 honorees were recognised spanning 22 countries and 47 industries.
The recognition honours those companies that understand the importance of making value-based decisions, and their overall commitment to integrity.
“We’re very proud to be recognised for the fifth consecutive year as one of the World’s Most Ethical Companies and the only honoree in the apparel industry,” said Steve Rendle, VF’s Chairman, President and CEO.
He further added that this recognition demonstrates the deep commitment of our associates around the world to lead with integrity and transparency. As we continue to transform our business to be a more consumer-minded, retail-centric and hyper-digital organisation, we’ll also maintain our relentless focus on managing our global operations with the highest ethical standards.
“The World’s Most Ethical Companies honorees continue to demonstrate an unwavering commitment to the highest values and positively impacting the communities they serve. Congratulations to everyone at VF Corporation for earning the World’s Most Ethical Companies designation,” said Timothy Erblich, CEO, Ethisphere.
The Ethisphere Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust and business success.
Source: Apparel Online
The Indian textile and clothing sector has several opportunities in the infrastructure and healthcare sectors, Union Minister for Textiles Smriti Zubin Irani has said.
Inaugurating the Global Textile Conclave, organised virtually by the Confederation of Indian Textile Industry, on Wednesday, the Minister said the Union Budget this year had proposed capital expenditure of ₹1 lakh crore in infrastructure projects next financial year and another ₹ 1 lakh crore in railways. The Jal Jeevan Mission of the Union Government was not only to provide clean drinking water but also to develop water bodies in rural areas.
These were also markets for the textile industry to focus on. The National Mission on Technical Textiles was to enhance the research capabilities, technology and production of technical textiles in India. There were opportunities in Buildtech, Meditech, etc.
“The PPE story of India is historic,” she said. There were about 1100 companies that make PPEs in India while there were none before the pandemic. “This strength should become the foundation for the textile industry's growth,” she said.
The Production Linked Incentive scheme of the Centre highlighted some product lines where India needed to become self-reliant and globally competitive.
The seven mega textile parks announced in the Budget should attract investments. However, the industry should also look at how the MSME units could benefit from these opportunities.
The Minister urged the industry to look at the challenges and the need for good technology that was effective for the silk sector and diversification in the jute sector.
In his message for the conference, Prime Minister Narendra Modi said the government was taking comprehensive measures for the textile industry. It had implemented several programmes to upscale infrastructure. Contribution of the textile sector was vital for building a self-reliant India. Integrating the industry with technology was a focus area. Indian textile industry should continue to innovate as well as research extensively to tap new markets. The impact of the pandemic showed how the industry could leverage on technology and convert challenges into opportunities.
Source: The Hindu Business Line
Indian apparel manufacturing and retail giant Aditya Birla Fashion and Retail Ltd (ABFRL) has joined hands with famous fashion designer Tarun Tahiliani for luxury couture and ethnic menswear.
Under the partnership, both organisations will jointly set up a new entity which will retail contemporary ethnicwear and accessories for men under a new brand.
Just last month, ABFRL had signed a definitive agreement to acquire a 51 per cent stake in designer label Sabyasachi, for an estimated Rs. 398 crore.
ABFRL will have major share (80 per cent) in the venture, while rest will be with Tarun. This new venture will strengthen ABFRL’s position in the ethnicwear segment.
The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements.
The company plans to operate 250 stores over the next five years for the men’s ethnicwear brand, targeting sales of Rs. 500 crore. It will open the first set of retail stores by September 2021.
Ashish Dikshit, MD, ABFRL said, “Over the next few years, ethnicwear is going to be an important category. Tarun Tahiliani has been at the forefront of the emergence of the Indian design industry and we are proud to partner with him to launch a brand that gives the emerging Indian consumer a new range of celebration wear at more accessible prices.”
As part of the partnership, ABFRL will also acquire 33.5 per cent stake in Tarun’s luxury couture business Goodview Properties for about Rs. 67 crore, with an option to increase it to 51 per cent later.
It is also pertinent to mention here that in June 2019, ABFRL had acquired ethnic apparel and lifestyle retailer Jaypore for Rs. 110 crore. Later in July 2019, it announced a partnership with Shantanu & Nikhil.
Source: Apparel Online
All private sector banks will be allowed to conduct government related banking transcations such as tax and pension payments.
Finance minister Nirmala Sitharaman in a tweet said that private banks can now be equal partners in development of the Indian economy, furthering government social sector initiatives, and enhancing customer convenience.
"Embargo lifted on grant of Govt business to private banks. All banks can now participate," she said in a tweet.
In a statement the finance ministry said that the government has conveyed its decision to the Reserve Bank of India or RBI. At present besides state run lenders only a few selected private sector banks are allowed to conduct government related banking transcations.
"With the lifting of the embargo there is now no bar on RBI for authorisation of private sector banks for government buisness including government agency buisness, " the statement noted.
Government related banking transcations include taxes and other revenue payment facilties, pension payments and small savings schemes.
Source: The Economic Times
World’s leading apparel brand Zara’s parent company Inditex will support more than 2,000 Indian farmers producing organic cotton.
For this cause, the apparel giant has joined forces with Asia-based bank, DBS Bank, to supply finance to farmers.
Under this pilot programme, DBS will work with the local network of Farmer Producer Organisations (FPOs) to evaluate the financing needs of farmers in Inditex’s supply chain.
FPOs are agricultural cooperatives that aim to expand small and marginal farmers’ access to better technology, credit and more markets.
This programme will see finance supplied to the FPOs in order to more efficiently procure organic cotton from farmers, thus allowing the farmers greater cash flow visibility and the ability to plan and grow their sustainability practices.
With growing focus on climate risks and social inequality, the global cotton industry offers huge opportunity to invest for positive impact said Terence Yong, Group Head of Western Multinational Corporations, DBS Bank.
“Globally, our clients are increasingly mindful of looking for ways to add societal and environmental value through their business decisions, with many taking the leap to digitalise their supply chains to enhance transparency and traceability of transactions made,” he said.
“The pilot programme forms an integral part of DBS India’s larger plan to build its Priority Sector Lending business. Priority Sector covers under-banked sectors which the Reserve Bank of India considers important for the overall development of the economy – including agriculture; small businesses; affordable housing; education and renewable energy,” said Arvind Sharma, Head of Priority Sector Lending, DBS Bank.
It is worth mentioning here that India’s organic cotton industry is made up of close to 170,000 farmers scattered across multiple states, the majority of whom are small-scale growers with limited resources to invest in sustainable farming practices.
Organic cotton comprises only around 2 per cent of the total amount of cotton produced in India, despite the country being the largest cotton producer in the world.
Worldwide, organic cotton only accounts for about 1 per cent of cotton used in apparel, and though it’s known to use more than 90 per cent less water, eliminate water pollution from chemicals and pesticides and produces less greenhouse gas emissions than mainstream cotton production, questions remain about its sustainability when farmed at scale.
Source: Apparel Online
Prime Minister of India, Narendra Modi Ji in the goodwill message to the Indian textile industry and Confederation of Indian Textile Industry (CITI) – Global Textiles Conclave 2021, which was read today by the Hon'ble Union Minister of Textiles and Women & Child Development, Smriti Zubin Irani mentioned that "Our Government has been taking comprehensive measures in an integrated manner focused on creating the right ecosystem, enhancing 'ease of doing business' and capacity-building through skill development. To provide an impetus to the textiles industry, we have implemented a series of measures to upscale physical infrastructure to global standards''.
Prime Minister further stated that the "Contribution of the textiles sector is vital towards building an Aatmanirbhar Bharat. Integrating the sector with the latest technology is one area where the Government is particularly focusing. The textiles industry must continue to innovate, as well as research extensively to enable it to tap new markets and deepen the niche in diversity, manufacturing, and design.
Prime Minister also pointed out that "The impact of the COVID-19 pandemic showed how technology can be utilized to strengthen the disruptive resilience of society and transform a challenge into an opportunity. The hardworking textile workers and craftsmen enabled the textile industry to make an invaluable contribution towards meeting the requirements of cost-effective PPE kits within the country."
Source: Millenium Post
A new report by Boston Consulting Group (BCG) says India’s consumption market is back on the growth track after a year, having been disrupted by the pandemic. While growth projection for the consumption market was made before Covid-19 struck, BCG says that the economy has completely unlocked and there has been an uptick in demand across categories.
It says India’s consumption market will triple by 2030, though there could be a lag of 1-2 years induced by the pandemic. The consumption spurt will be driven by urbanisation, higher disposable incomes, and nuclear families.
BCG also notes that retailers will have to develop new strategies to tide over challenges that may emerge in the post-Covid world.
Source: The Business Standard
The Deputy Chief Minister of Tamil Nadu and Finance Minister Thiru O. Panneerselvam presents the Tamil Nadu Interim Budget 2021-2022 in assembly!
Raja M. Shanmugham, President, Tirupur Exporters’ Association (TEA), has said that the allocation of fund for infrastructure, particularly development of roads in highways and rural areas, are steps that will benefit all.
Considering Coimbatore, Tirupur, Erode, Salem are the leading textile and apparel hubs of the state, industry is also happy with the Detailed Feasibility Report (DFR) prepared for establishing a Metro Rail in Coimbatore with 44 km in the first phase at a cost of Rs. 6,683 crore.
The feasibility for extending the project up to Tirupur will be largely helpful to the daily commuters to reach the destination quickly.
The industry also appreciated the State Government’s efforts to formulate an Urban Wage Employment programme and finalise the detailed guidelines through discussions with stakeholders.
It is pertinent to mention here that the state will have assembly election in next few months.
Source: Apparel Online
Golam Mohammad Siraj, Chairman of SR Group inaugurated the heavy industry at Sherpur Upazila in Bogura district.
On the first day of its production, 107 tons of caustic soda flakes were sent to seven companies.
The factory will produce 7 types of chemicals – including caustic soda, bleaching fine and bleaching powder – used in paper and textile industries.
Apart from fulfilling the local demand, SR Group will export chemicals worth around Tk 60 crore every year.
Asif Rabbani, Managing Director of SR Group, said the launch of the company would save Tk 200 crore in foreign exchange every year.
Rabbani adding that, half of the products will be exported to South Asian countries.
It has a sales contract with bleaching fine technology partner Dezhou Chemtics of China, which will buy at least 50 percent of the bleaching fine product.
About 60 percent of the fund came from Islami Bank Bangladesh and the rest from SR Group’s coffer.
The plant will create jobs for 1,000 people. It has already recruited 800 people, including technicians, engineers and workers, said Md Rayhan Ferdoush, Head of Production.
During a feasibility study, SR Chemical found that there is a demand for more than Tk 500 crore to Tk 600 crore worth of chemicals in the domestic market.
To address environmental issues, the company is using Japanese Asahi technology and the plant has been built by BCMC, a part of ChemChina, a Chinese company known globally for its green technologies, said Rabbani.
Rabbani told, “We are running a zero-liquid discharge ETP [effluent treatment plant] following the environmental guideline. The plant is being controlled by an auto machine unit and there are 67 sensors. If leakage occurs, the whole plant will be shut down within seconds.”
The plant has secured environmental clearance from the Department of Environment (DoE).
Source: Textile Today
The world’s renowned clothing brand Levi’s has announced a strategic partnership with Deepika Padukone – an internationally acclaimed actor and global fashion and youth icon. Deepika will now spearhead the new campaign focused on an all new range of fashion fits of Levi’s.
The new range of Levi’s this year will be about statement-making shapes like high-rises, on-trend loose fits and the runway returning wide-leg bottoms.
Not just trendy designs, the range will also feature the Waterless Technology of Levi’s that saves up to 96 per cent of water used in the finishing process with more than 20 different manufacturing techniques that have so far saved more than 3 billion litres of water and recycled another 5 billion.
This range will also see the introduction of Tencel which is a highly sustainable and extremely soft fabric made from recycled wood pulp and wood from sustainably managed eucalyptus and spruce forests.
Commenting on the collaboration, Deepika Padukone averred, “Authenticity, Originality and Honesty are values that the brand has been built on and are values I identify with the most! For those unaware, I have always been a jeans and t-shirt kind of girl.
The right pair of jeans not only make me feel comfortable but also confident! I am absolutely honoured and delighted to be associating with one of the world’s most iconic brands – Levi’s.”
Sanjeev Mohanty, Managing Director (South Asia & MENA), Levi’s, said, “We are absolutely thrilled as Deepika’s personality shines through a balance of being bold, authentic, true and uncompromising that perfectly fits with our brand values. She is not only a style icon but also an inspiration to the youth and women globally. With her on-board, we are confident of strengthening the brand further especially when we are strongly focusing on leading the women’s category.”
Source: Apparel Online
Moody’s on Thursday upped India’s growth projection for the next financial year beginning April 1, to 13.7 per cent, from 10.8 per cent estimated earlier, on the back of normalisation of activity and growing confidence in the market with the rollout of COVID-19 vaccine.
For current fiscal, the US-based rating agency expects the economy to contract 7 per cent, lower than its previous estimate of 10.6 per cent contraction.
Moody’s Investors Service Associate Managing Director (Sovereign Risk) Gene Fang said “our current expectation is that in the current fiscal ending March 2021, the economy would contract 7 per cent… We expect a rebound of 13.7 per cent growth in the next fiscal on normalisation of activity and base effects.”
The very large rebound incorporates the view that recovery in activity will continue, with the rollout of vaccines and growing confidence in the market that activities are coming back to normal, Fang said in an online conference on India Credit Outlook 2021 organised by Moody’s and its India affiliate ICRA.
ICRA Principal Economist Aditi Nayar said it expects 0.3 per cent growth in the third quarter (October-December) of current fiscal.
ICRA expects Indian economy to contract 7 per cent in current fiscal and growth to rebound to 10.5 per cent in the next fiscal beginning April 1.
“Recession in India has ended,” she said, adding there could be upside to growth in FY’22 if government’s capital expenditure increases, budget announcements are implemented and vaccination drives are carried out.
Source: The Financial Express
According to Ministry of Commerce and Industry (India), the country is down by 14.30 per cent in its kidswear export values in a tough year like 2020.
Clocking US $ 991.90 million from its kidswear product shipment, India fell in its top markets such as USA, UK, UAE and Germany.
The top destination was USA which reduced its import of kidswear from India by 4.49 per cent to US $ 279.62 million in 2020, while UK imported US $ 169.11 million worth of kids clothing products, falling 21.67 per cent on Y-o-Y basis.
The third top destination was UAE where India saw a fall of 6.23 per cent in its kidswear exports in 2020 and hit US $ 107.58 million.
On the other hand, the export of kidswear to Germany plunged by 20.65 per cent to US $ 50.19 million.
Source: Apparel Online
With 57 members co-sponsoring the proposal and many more backing it on the floor, total support crossed 100, say Geneva-based officials
The growing support for India and South Africa’s proposal for temporary waiver of certain TRIPS (intellectual rights) obligations at the WTO to deal with the Covid-19 pandemic has put developed countries under pressure, Commerce & Industry Minister Piyush Goyal has said.
The Minister pointed out that 57 countries had co-sponsored the India-Africa proposal and a large number of African countries and LDCs were already on board. With many more members supporting the proposal on the floor, such as the ACP Group, Afghanistan, Argentina, Bangladesh, Cambodia, Sri Lanka, Honduras, Cuba, Nepal, Nicaragua, Nigeria, Indonesia, Tunisia, Mali and Mauritius, the total support has crossed 100, officials in Geneva say.
“The developed world is under pressure. Because, on one hand, they talk about supporting each other and a multilateral fight against the Covid pandemic and on the other hand, they are looking at protecting interests of few companies only in terms of innovation cost and R&D,” the Minister said in a recorded message shared with the media.
The 57 countries co-sponsoring the proposal include Kenya, Eswatini, Mozambique, Pakistan, Bolivia, Venezuela, Mongolia, Zimbabwe, Egypt, the African Group and the LDC (least-developed countries) group.
Equitable access to medicines
Goyal recounted that India, together with South Africa, had introduced the proposal in the WTO’s TRIPS council for a TRIPS waiver during the Covid pandemic to allow more and more countries to get equitable access to medicines and other products.
The Indian delegate to the WTO, at the TRIPS Council meeting this week, asked developed country governments to explain why they were so eager to protect the commercial interests of only a few companies in the pharmaceuticals sector when they had intervened to suspend air transport and restrict mobility to prevent the spread of the virus, the Geneva-based official said.
He further pointed out that members who dismissed their arguments about the possibility of shortages of vaccines, therapeutics and other equipment were themselves facing shortages in their jurisdictions although they had negotiated advanced purchase agreements.
Members such as the US, the EU, Australia, Switzerland and Japan and a handful of developing nations including China and Chile have been opposing the proposal seeking more evidence-based discussion.
The Indian delegate pointed out that the endless questions being posed by developed countries on the proposal could be seen as a way of intentionally delaying the start of text-based negotiations on the waiver, the official said.
Source: The Hindu Business Line
Jawaharlal Nehru Port Trust (JNPT) signed over 30 MOUs (Memorandum of Understanding) with potential investors for port projects, technology transfer and development of plots in JNPT SEZ.
These MoUs are worth around Rs 27,000 crore.
DP World, JM Baxi & Co, Ganesh Benzo, BPCL, NITIE, SSG Pharma Pvt. Ltd, Sooraj Agro, JWR logistic, Cineline India Ltd. are some of the companies that have signed MoUs to make investment towards manufacturing, IT services, warehousing/cold storage, FTWZ, pharma, confectionery manufacturing, engineering services, food processing among others. This MoU was signed in line with the Maritime India Summit 2021 to be held online from March 2 to 4.
Sanjay Sethi, IAS, Chairman, JNPT said, “ We have signed over 30 MoUs with various companies at the ‘Maritime India summit’. This will help establish JNPT as one of the premier investment destinations in the country, as we continue to remain an attractive investment destination even after the impact of COVID -19 across the globe. Even during these trying times, JNPT has attracted around Rs. 27,000 crore worth of new investments. The signing of the MoUs will provide vast employment opportunities and various benefits to the EXIM Trade. Additionally, this will open opportunities within India and in the international coastal lines.”
Source: The Free Press Journal
India’s Budget is tilted towards supporting growth and the fiscal deficit target of 6.8 per cent for 2021-22 is realistic, Moody’s Investors Service said on Thursday.
With regard to India’s finances, Moody’s said weak fiscal position will remain a key credit challenge in 2021.
It said the government’s fiscal deficit for 2020-21 and 2021-22 should be lower than projected, supported by stronger revenue generation in ongoing March quarter and higher nominal GDP growth in the next fiscal year.
“India Budget tends to tilt a little bit in favour of support for growth. The deficit in Budget for FY’22 was above what we expected, but nevertheless we think that the deficit target is a realistic one.
“The government has incorporated a conservative assumption of nominal GDP growth and we think most revenue assumptions conservative, with the possible exception of monetisation expectations pegged in Budget,” Moody’s Associate Managing Director (Sovereign Risk) Gene Fang said.
Wide fiscal deficits combined with lower real and nominal GDP growth over the medium term will constrain the government’s ability to reduce its debt burden, Fang said in an online conference organised by Moody’s and its affiliate ICRA on ‘India Credit Outlook 2021’.
Moody’s said the prospects for fiscal consolidation remain weak particularly given the government’s mixed track record of implementing revenue-raising measures.
Although the government has not provided an explicit medium-term fiscal consolidation road map, the budget targets a fiscal deficit of 4.5 per cent of GDP by fiscal 2025-26, which amounts to an average annual deficit reduction of about 0.5 per cent of GDP over four years, it added.
“Given India’s very high debt burden, this gradual pace of consolidation will prevent any material strengthening in the government’s fiscal position over the medium term, unless nominal GDP growth picks up sustainably to reach much higher rates than historically recorded,” it added.
India has exceeded its fiscal deficit target of 3.5 per cent in the current fiscal year by a wide margin due to higher spendings to stimulate the economy amid the pandemic.
The fiscal deficit – the excess of government expenditure over its revenues – has been pegged at 9.5 per cent of the GDP in the current fiscal year, as per the revised estimate.
For 2021-22, the deficit has been put at 6.8 per cent of the GDP, which will be further lowered to 4.5 per cent by 2025-26.
Source: The Financial Express
Keep Northern Ireland Beautiful and funded by Department of Agriculture, Environment and Rural Affairs (DAERA); aims to tackle public behaviour and awareness around textile waste and encourage consumers to never put clothing in the bin.
Welcoming the initiative, Minister Lyons said: “This type of waste is a growing problem, every week in Northern Ireland around 500 tonnes of textile waste is dumped, approximately 27,700 tonnes just since December 2019 alone, with many items having only been worn once or still in perfect condition. What is most concerning is that around 30% of this unwanted clothing and other textiles that are binned each year end up in landfill – that’s around 8,300 tonnes. Sending this waste to landfill means harmful greenhouse gases are emitted causing environmental damage and negatively impacting human health.”
The Minister continued: “It is vital that we continue to protect our environment for future generations and this campaign is a great example of the work that can be done to contribute towards this.”
Forever Fashion, a unique and innovative campaign, urges consumers to never put unwanted clothing in the bin, but rather to consider more environmentally friendly alternatives.
For example -
Reuse: One person’s trash is another’s treasure. Donating unwanted items to friends and family or charity shops, or shopping and selling preloved fashion through NI’s growing network of vintage shops or online through sites such Depop and Vinted, is a great way to avoid binning textiles while potentially making some money in the process. It’s also worth remembering that style always comes back around so hanging onto a few choice pieces could be a fashion-forward choice.
Repair: Wear and tear doesn’t automatically mean the bin. Simple repairs to clothing like popping on a new button, removing or covering a stain, or mending a hole can prolong their life and bring many months if not years more enjoyment.
Reimagine: Reimagine clothing by upcycling unflattering fashion items. Becoming creative with a sewing machine, either at home or engaging with a professional dressmaker, gives pieces that no longer fit a new lease of life.
If an item of clothing or textile is very worn and in an unusable condition, the message remains – never put it in the bin. Instead take this item to your local recycling centre or bring bank when it becomes safe to do so.
As a result of the Covid-19 pandemic, some of the suggested disposal options are not advised under Government restrictions, and as people continue to remain at home, the bin may seem like the easiest, safest option. With this in mind, Live Here Love Here is urging people to hold on to their unwanted items until they can be donated or upcycled.
Siobhan Purnell, Co-ordinator of the Fashion Forever campaign said: “Our Fashion Forever message is simple - never put your unwanted clothing in the bin.
“Remind yourself of the more environmentally-friendly, alternative options – reuse, repair and reimagine. Could someone use this jacket? Can I easily repair this hole? Can I sell this dress online?
“We want people to know that they can still enjoy fashion and shopping, but also that by making one small change and committing to never putting clothes in the bin, they can make a huge difference to our local environment. Remember that fashion can and should be forever.”
Source: Farming Life News
Zalando has expanded Zircle, a webshop dedicated to consumers looking for a quality-checked, inspirational pre-owned fashion assortment to Sweden and Denmark. As Europe’s leading online fashion platform headquartered in Berlin, Zalando delivers to customers in 17 countries. Zalando fashion store has a wide assortment from more than 3,000 brands.
All of this comes with the look, feel, and unmatched convenience of Zalando, making more than 100,000 fashion items from well-known brands now available to all Zalando customers in these two markets in the Nordics. Zircle responds to conscious Nordic consumer demand for an easy and convenient pre-owned fashion shopping experience. A Zalando survey shows that around half of Zalando’s Swedish and Danish customers would consider buying pre-owned fashion within the next six months, the company said in a media statement.
Each article on the platform, all previously owned by Zalando customers in markets where a trade-in function is available, has been assessed in a two-step quality check; first via digital photos uploaded by the customer and secondly once Zalando receives the physical product. This is done to guarantee a curated and high-quality fashion experience.
The wide assortment on Zircle includes brands that are available on Zalando and others currently unavailable on the Fashion Store. In line with Zalando’s goal to minimise waste and keep materials in use, specifically eliminating single-used plastics by 2023, plastic-free packaging is being piloted for all orders from Zircle and recycled paper is used instead, Zalando said.
“We are very excited to expand Zircle to Sweden and Denmark and offer Nordic consumers a pre-owned experience with the highest level of convenience. Over the past two years since launching Zircle in Germany and expanding across Europe, we have gathered many learnings that helped improve the customer experience when shopping on Zircle,” Mareike Hummel, director UX Recommerce at Zalando, said in a press release.
With the launch of Zircle in 2019 in Germany, Zalando has had the chance to test and learn how the pre-owned experience works for its customers and how it can be scaled and improved. Following those learnings, Zalando integrated the Pre-Owned category into the Zalando Fashion Store in Germany, Spain, Belgium, France, the Netherlands, and Poland in 2020.
Source: Fibre2Fashion News
US President Joe Biden on Wednesday revoked a proclamation from his predecessor that blocked many green card applicants from entering the United States.
Former President Donald Trump issued the ban last year, saying it was needed to protect U.S. workers amid high unemployment due to the coronavirus pandemic.
Biden rejected that reasoning in a proclamation on Wednesday rescinding the visa ban. The Democratic president said it had prevented families from reuniting in the United States and harmed U.S. businesses.
Biden, a Democrat, has pledged to reverse many of Trump's hardline immigration policies. Immigrant advocates had pressed in recent weeks for him to lift the visa ban, which was set to expire on March 31.
Biden left in place another ban on most foreign temporary workers.
In October, a federal judge in California blocked Trump's ban on those foreign guest workers as it affected hundreds of thousands of U.S. businesses that fought the policy in court.
Curtis Morrison, a California-based immigration attorney, who represents people subject to the ban said Biden will now have to tackle a growing backlog of applications that have been held up for months as the pandemic shut down most visa processing by the State Department. The process could potentially take years, he said.
"It's a backlog that Trump created," Morrison said. "He broke the immigration system."
The State Department did not immediately respond to a request for comment.
Source: The Mint
Puma, a Germany-based manufacturer of athletic and casual footwear, apparel and accessories, has reported 1.4 per cent sales decline to €5.2 billion in its full fiscal 2020 that ended on December 31, 2020, compared to the sales of €5.5 billion in the previous fiscal. Company’s net earnings during the year slipped to €123.1 million (FY19: €309.0 million).
“I am very happy that we managed to end a very difficult 2020 with considering the circumstances, a good fourth quarter. We grew our sales in the fourth quarter, despite lockdown measures, by 9 per cent to €1,520 million and our EBIT by 15 per cent to €63 million,” Bjørn Gulden, chief executive officer of Puma, said in a press release.
Gross profit for FY20 was €2.4 billion (€2.6 billion), while operating result decreased to €209.2 million (€440.2 million).
Company’s sales in all the regions dropped during 2020. EMEA (Europe, the Middle East and Africa) sales fell 0.9 per cent to €1.9 billion (€2.0 billion). Americas sales dropped 8.7 per cent to €1.7 billion (€1.9 billion). Despite growth in Greater China, Asia/ Pacific sales were down 5.2 per cent to €1.4 billion (€1.5 million).
Sales of footwear division slipped 7.2 per cent to €2.3 billion (€2.5 billion), whereas apparel sales for the year dipped 4.6 per cent to €1.9 billion (€2.0 billion).
The wholesale business in 2020 decreased 4 per cent to €3.8 billion. Puma's direct to consumer business (DTC), which includes owned and operated retail stores as well as e-commerce, increased 6.4 per cent to €1.4 billion.
“The pandemic is unfortunately still here and impacting our business. We do expect the negative impact to continue through the first and parts of the second quarter but expect to see an improvement in the second half of the year. I am convinced that 2021 will be a better year for us than 2020,” Gulden said.
Source: Fibre2Fashion News
According to annual figures released on Wednesday, the Swiss MEM industry saw sales drop by 9.8% and incoming orders by 6.5% in 2020. The situation started to improve in the second half of the year with new orders in the fourth quarter of 2020 returning to the previous year’s level.
This was thanks in large part to trade with China, which recovered quickly after the shutdown in the first quarter.
“The Swiss industrial companies that do business locally or with exports with China were able to benefit quickly," said Martin Hirzel, President of the Swissmem, manufacturing industry association, in an interview with Swiss public television SRF.
The Swiss industrial sector has boosted business with China with the help of the free trade agreement in force since 2014 – the first signed between China and a European country. The sector now exports four times more to China than two decades ago. Exports to the country making up 7% of all Swiss MEM exports.
Hirzel highlighted that the Swiss industry’s high-tech and innovative goods represent a particular niche, where Chinese companies can’t yet compete.
Criticism
With closer ties to China, it is also facing more criticism amid concerns over the human rights situation in the western region of Xinjiang.
The South China Morning Post reportedExternal link this week that Switzerland is the second highest exporter of textile machinery to the Xinjiang region after Germany, shipping US$680,279 (CHF6017,065) worth.
Xinjiang produces 85% of China’s cotton and 20% of the global total. The textile industry has been implicated in alleged human rights abuses in the autonomous region, which is home to large populations of Uygurs and other Muslim minorities. Several countries including the United States and Canada have declared the treatment of the Uyghur population as genocide.
Hirzel told SRF he was worried about the situation, saying that "we have to address that openly." However, noted that it is the work of politics and that the countries can build on the basis of trust established through the free trade agreement.
Recovery in view
Exports of goods by the MEM industries shrank by a high 11.2%, representing a loss of CHF7.6 billion. All major sales regions suffered with exports to the US falling the most by 12.6%.
Exports of goods in mechanical engineering were the hardest hit (12.4%), followed by metals (11.2%), electrical/electronic engineering (9.4%) and precision instruments (8.5%). Some 6,600 jobs were lost in the sector as a result of the slowdown.
The industry hopes that the recovery will continue but warns that a possible third wave of the pandemic could lead to a renewed global slump, with consequences for Swiss industry.
Source: Swissinfo.ch
Vietnam’s growth prospects will depend on how well and quickly its government will bring the new coronavirus outbreak under control and how quickly international and national vaccinations will proceed, according to the World Bank (WB). The preliminary January goods trade surplus in the country is estimated at $1.1 billion, the lending agency said.
In its Vietnam Macro Monitoring report issued earlier this month, the World Bank said January’s industrial production index jumped by 24.5 per cent year on year, the highest growth rate since the beginning of 2019. Merchandise exports and imports respectively grew 51.8 per cent and 41.8 per cent from the same period last year.
Exports to the US and China continued the robust growth of 2020 while those to the European Union (EU), the Association of Southeast Asian nations (ASEAN), Japan and the Republic of Korea bounced back strongly. Similarly, imports from the RoK, ASEAN and the United States joined those from China, Japan and the EU to stay in expansionary territory.
In the first month of 2021, the Vietnamese government spent a total of 99.6 trillion VND, which is 1 per cent higher than a year ago. Public investment reached 15 trillion VND, making the disbursement rate of 3.25 per cent.
However, the bank added, while Vietnam’s economy has been extremely resilient to the COVID-19 crisis, preliminary results from the COVID-19 World Bank high frequency household survey of January show that almost half of households still reported lower household income than the year before. About 9 per cent of households took loans and 15 per cent reduced their consumption.
If persistent, this prudent behaviour will negatively affect aggregate domestic demand in the future, according to the bank.
It held that growth prospects for 2021 will be affected by how well and how quickly the authorities will bring the new outbreak under control and how quickly international and national vaccinations will proceed.
If the crisis lingers, the authorities may consider further monetary and fiscal support. Yet, special attention will have to be given to the fiscal space, the health of the financial sector and possible social effects as lasting loss of income among some households may create new inequalities and tensions, the report noted.
Source: Fibre2Fashion News
The US ban on China's Xinjiang cotton yarn makers over the inhuman treatment meted out to Uyghurs is now impacting the economic growth of its cotton companies.
Last month, Chinese cotton yarn maker Huafu Fashion sent a warning to investors. "Multiple American brands have canceled orders," Huafu said in a Shenzhen stock exchange filing, citing US sanctions. "It's brought negative effects to the company," reported The Washington Post.
Huafu -- which said it lost at least USD 54.3 million last year vs. a net profit of USD 62.5 million in 2019 -- is one of the few suppliers to publicly acknowledge the sanctions' effects, reported The Washington Post.
Thousands of companies worldwide are affected after the United States blacklisted 87 per cent of China's cotton crop -- one-fifth of the world's supply -- citing human rights violations against Muslim Uyghurs in China's northwest Xinjiang region.
The US sanctions were prompted by the Chinese government's harsh re-education campaign against Uyghurs, a Turkic ethnic minority. Some Uyghurs detained in internment camps in Xinjiang in recent years have said they were tortured and forced to work in textile factories as a condition of release.
The United States began isolated sanctions last year on Xinjiang textile makers, including Huafu, which didn't respond to a request for comment. On January 13, CBP announced a blanket ban on all Xinjiang cotton.
"Companies can no longer claim ignorance as an excuse," CBP said in a statement to The Post. "CBP's message to the trade community is clear: Know your supply chains."
Cotton picked in Xinjiang winds up in garments cut and sewn across Asia, from Bangladesh to Vietnam, textile industry executives say. The US ban applies to products "made in whole or in part" with Xinjiang cotton, "regardless of where the downstream products are produced," said US Customs and Border Protection (CBP).
Justin Huang, president of the Taiwan Textile Federation, said Taiwanese textile manufacturers received notices in September from Western brands to confirm their cotton sources. He said brands no longer wanted Chinese cotton, since it was difficult to confirm from which region of China it originated, reported The Washington Post.
"US manufacturers are very sensitive," he said, "so before the announcement, US traders had already begun to shift their production lines."
Patagonia announced in July it was "actively exiting the Xinjiang region," and said it told suppliers that Xinjiang fiber and manufacturing was prohibited.
Gap, which encompasses the Old Navy and Banana Republic brands, said it has prohibited suppliers from sourcing products, components or materials from Xinjiang, directly or indirectly.
Ikea said it "stopped all shipments" to the United States containing Xinjiang cotton after the CBP ban. Ikea and H&M both said their suppliers have stopped new cotton purchases from Xinjiang because of the Better Cotton Initiative's decision last year to discontinue licensing cotton from the region.
Nike said it has confirmed its suppliers were not using textiles or spun yarn from Xinjiang and that it was communicating the new requirements to them.
One of the rare reports of a factory shift directly attributed to the sanctions came in October from the Vietnam Investment Review, a periodical run under Vietnam's Ministry of Planning and Investment.
It said that Hong Kong-headquartered yarn giant Texhong, which has a Xinjiang subsidiary, was shifting some production to Vietnam because of the US sanctions, reported The Washington Post.
Moreover, there is growing interest in chemical-tracing technologies to determine cotton origin, though they are not yet in widespread use. Tracing company Oritain is working with a "large number of brands" on gauging their supply chain risk from Xinjiang cotton, chief executive Grant Cochrane said.
Hibbie Barrier, a cotton broker at Avondale Futures in Nashville, said the ban may have contributed to rising demand for US cotton in recent months, and a bump in global cotton prices, from 81 cents a pound in mid-January to over 90 cents a pound last week.
Source: The New Indian Express
Shanghai-based Challenge is investing $150 million in an industrial park on Lahore’s border with Kasur. The park will host fabric units, dyeing facilities and garment manufacturing units for exporting sportswear from Pakistan to the Americas, Europe, Asia-Pacific and other regions. The firm is already operating in Pakistan as Challenge Apparel since 2017.
It has a garment manufacturing unit on Multan Road near Lahore, fetching nearly $44 million in export revenue during the last fiscal, according to its managing director Chen Yan.
She expects exports from her existing facility to grow to $54 million this fiscal. Once the Challenge Fashion Industrial Park becomes functional from July next year, its sportswear exports from Pakistan are projected to grow to $120 million in the first year and to $400 million in the subsequent few.
The largest Pakistani textile exporting company’s exports stood at less than $300 million last year, according to Pakistani newspaper report.
Currently, the company employs around 3,000 workers, including 28 Chinese nationals. Once the industrial park becomes fully functional, the company will end up creating nearly 10,000-11,000 new jobs.
Source: Fibre2Fashion News
COVID-19 AND OTHER similar strains of virus can survive on clothing and transmit to other surfaces for up to 72 hours, a study has found.
Research carried out by De Montfort University (DMU) in Leicester looked at how coronavirus behaves on three fabrics commonly used in the healthcare industry.
Scientists said polyester poses the highest risk for transmission, with infectious virus still present after three days that could transfer to other surfaces.
The study, led by microbiologist Dr Katie Laird, virologist Dr Maitreyi Shivkumar and postdoctoral researcher Dr Lucy Owen, involved adding droplets of a model coronavirus called HCoV-OC43 – which has a very similar structure and survival pattern to that of Sars-CoV-2 – which causes Covid-19 – to polyester, polycotton and 100% cotton.
Scientists said on 100% cotton the virus lasted for 24 hours, while on polycotton it only survived for six hours.
The university said Dr Laird advised the British government that all healthcare uniforms should be laundered in hospitals to commercial standards or by an industrial laundry.
Dr Laird, head of the Infectious Disease Research Group at DMU, said: “When the pandemic first started there was very little understanding of how long coronavirus could survive on textiles.
“Our findings show that three of the most commonly used textiles in healthcare pose a risk for transmission of the virus.
“If nurses and healthcare workers take their uniforms home, they could be leaving traces of the virus on other surfaces.”
She continued: “Once we had determined the survival rate of coronavirus on each of the textiles, we turned our attention to identifying the most reliable wash method for removing the virus.
“While we can see from the research that washing these materials at a high temperature, even in a domestic washing machine, does remove the virus, it does not eliminate the risk of the contaminated clothing leaving traces of coronavirus on other surfaces in the home or car before they are washed.
“We now know that the virus can survive for up to 72 hours on some textiles and that it can transfer to other surfaces too.
“This research has reinforced my recommendation that all healthcare uniforms should be washed on site at hospitals or at an industrial laundry.
“These wash methods are regulated and nurses and healthcare workers do not have to worry about potentially taking the virus home.”
Source: thejournal.ie
Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“the Company” or “Kraig Labs”), the biotechnology company focused on the development and commercialization of spider silk, announces that the Company received its first small shipment of spider silk from Prodigy textiles, its wholly-owned Vietnamese subsidiary.
The Company has received fiber requests from a broad range of interested parties, including companies that produce products in the fields of sports apparel, industrial textiles, first responder supplies, medical products, and other manufacturers. In order to meet this demand, the Company established Prodigy Textiles to scale up the production of its recombinant spider silk fibers, threads, and textiles.
The Company's operations at its Prodigy Textiles facility are now moving forward to significantly expand the Company’s spider silk production. The Company expects to begin filling the backlog of material requests, including requests from Polartec LLC and MtheMovement, as this added capacity comes online.
“I want to thank the Prodigy Textiles team for making this milestone possible and setting the stage for our expansion. This helps us transition from being the leading developer of spider silk technologies to the producer and supplier of high quality spider silk fibers,” said Jon Rice, the Company’s Chief Operations Officer. “Now we can focus on meeting the substantial demand for spider silk and solidifying market channel partnerships to reach our goal to develop and bring new products to market.”
About Kraig Biocraft Laboratories, Inc.:
Kraig Biocraft Laboratories, Inc. (www.KraigLabs.com), a reporting biotechnology company, is a developer of genetically engineered spider silk based fiber technologies.
Source: Fibre2Fashion News
The government has extended anti-dumping duty on melamine originating in or exported from China, up to March 31, 2021, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification Thursday.
“The designated authority has requested for further extension of the antidumping duty on the subject goods originating in or exported from the subject country,” the Board said in a notification issued Thursday, extending the duty by a month from the earlier deadline of February 28, 2021.
The Directorate General of Trade Remedies (DGTR) began a sunset review of an anti-dumping probe on the imports of melamine from China in September 2020, based on a complaint by Gujarat State Fertilizers & Chemicals Limited. Antidumping duty was first imposed on the product in 2004 and was extended after multiple reviews.
The DGTR had said at that time that there was prima facie evidence of dumping and consequential injury to the domestic industry on account of volume effect of significant imports, low production, capacity utilization, sales and market share and price effect due to positive and significant price undercutting and price underselling. This had led to losses, cash losses and negative return on capital employed.
The authority had added that there was a likelihood of dumping and consequential injury on cessation of the anti-dumping duty.
Melamine is used for making melamine formaldehyde, which in turn is used in producing downstream products. Melamine formaldehyde resin used for laminates offer good hardness, resistance to scratch, stain, water and heat.
In a separate notification, the Board has extended anti-dumping duty on imports of glazed or unglazed porcelain or vitrified tiles in polished or unpolished finish with less than 3% water absorption, from China, till June 28, 2021.
Source: The Economic Times
