The textile industry in India has beaten its Chinese counterpart in its own game. India’s textile industry has developed the fabric of Mink blankets, which were 100% imported from China till last year. Now, some units have started producing Mink blankets on a massive scale near Panipat in Haryana, bringing down the import of such blankets in India to zero.
The coronavirus pandemic and subsequent lockdowns brought down the economy of the entire world, including China and its manufacturing units, including those of Mink blankets. Experts say in this winter, when demand of these blankets surged across North and Northeast India, engineers and technicians of various private textile firms decoded the imported Mink blankets and with proper research, developed its fabric for mass production.
“Now, there is no need to import such blankets and we are really happy with the progress. This was just one example, many other fabrics, which were imported from countries like China and Taiwan, are being developed in-house and soon there will be no requirement of costly imported textile,” said Abhishek Sharma, an expert and exhibitionist in the textile industry.
The Mink blankets, which are lighter in weight than usual blankets, are high in demand across North India. These blankets are made of acrylic, which is known for its exceptional softness, warmth and light weight.
Earlier, 95% of the Mink blankets were imported from Korea for Rs 3,500-4,000 per piece, which was made of acrylic. But later, China started manufacturing Mink blankets by using polyster and the Indian market started importing these for Rs 1,500-2,000 per piece while only 5% of it was manufactured in Punjab.
ADVERTISEMENT
The Panipat industrialists started manufacturing Mink blankets a couple of years back and now post-lockdown, around 70 plants are operational in Panipat. Many more plants will become operational by the end of this year, Sharma added.
"Earlier, we imported the blankets unit-wise, but now it is available for Rs 150-170 per kg. On an average, a blanket weighs three kilograms and it costs Rs 500-600. Panipat is manufacturing approximately 9 lakh kg Mink blankets in a day, which is 3 lakh blankets per day," Sharma said.
Experts say that with a little help from the government, the industry can take over the entire market of textile in Southeast Asia, which is largely occupied by China and Taiwan.
“We need more national and international-level exhibitions where individual buyers, domestic manufacturers and wholesalers can visit to explore the upcoming opportunities. With ease of business going up in the current regime, we would like to urge the government to help the industry take over the market across Southeast Asia. Also, promotion of locally manufactured textiles in micro level is very important,” said Sharma.
Ankur Goel, another expert of the textile industry, said that by the next winters, Indian textile industry will be hopefully able to export the Mink blankets by crushing China’s monopoly. China is notorious for copying products from other countries and selling them at cheaper rates, but now the tables have turned. We didn’t copy, we decoded and developed the same or may be a better fabric that is cheaper, he said.
“Products of our industries are up to the mark for international standards. It seems like by next winters, we will snatch the Southeast Asia market for such blankets from China,” Goel said.
Source: India Today
India’s cotton exports are more likely to hit 60 lakh bales (every of 170 kg) for the present season (October2020-September 2021) on value competitiveness.
Trade physique Cotton Association of India (CAI) has famous that up to now about 60 per cent or 36 lakh bales has been shipped because the begin of the season.
This is primarily resulting from Indian cotton’s price competitiveness within the worldwide market. Indian cotton quoted at round ₹44,000-45,500 per sweet (every of 356 kg of processed cotton) through the previous couple of months. At this charge, the Indian exporters might supply a 10-per cent low cost to the worldwide prices, which hovered at round 85.60 cents per pound.
Higher crop outlook
However, commerce insiders knowledgeable that India’s aggressive benefit is probably not sustained because the worldwide cotton prices are seen falling on increased crop outlook within the subsequent year. The downward strain on the worldwide prices can also be mirrored within the far month futures on ICE, which quoted December ICE futures at 74 cents — about 11 cents decrease than present prices.
On the opposite hand, Indian cotton prices have additionally began upward journey amid elevated offtake within the export market. The benchmark Guj (ICS-105 – 29mm selection) has surged by over ₹2,000 a sweet from ₹43,200 on January 12.
Last year India’s cotton exports had been estimated at 50 lakh bales.
CAI projections
For the cotton crop, CAI has revised its output projections downward to 358.5 lakh bales, decrease by about 1.5 lakh bales from earlier estimate. Last year, the output was anticipated at 360 lakh bales.
CAI, in its newest crop outlook for March, acknowledged that India’s cotton imports can be round 12 lakh bales for the year, which is decrease by about 2 lakh bales from the sooner estimated about 14 lakh bales for the season.
The doubtless drop is attributed to the current hike within the import obligation on long-staple number of cotton. Last year, India had imported 15.50 lakh bales of the fibre. As per the CAI data, as on February 28, complete 7 lakh bales has already arrived at Indian ports.
Cotton steadiness sheet
Total cotton availability for the season is estimated at 495.50 lakh bales, which included the opening stock of 125 lakh bales firstly of the cotton season on October 1, 2020, and imports of 12 lakh bales, in addition to the crop dimension of 358.50 lakh bales, of which 298.89 lakh bales or about 83 per cent crop has already arrived within the markets until February 28, 2021.
The CAI estimates prompt that primarily based on the consumption projections, about 330 lakh bales can be consumed within the home market, whereas 60 lakh bales can be exported abandoning the carry-over stock on the finish of the cotton season 2020-21 on September 30, 2021, at 105.50 lakh bales, which is marginally decrease from 107.50 lakh bales within the earlier season.
Source: Newswrap India
The shortage of yarn in the domestic market has resulted in the hiking of prices in the hosiery and knitwear industry. On Monday (March 15), all the associations of Tirupur garment industry are observing a voluntary closure for a day, where all the shops and production will remain closed.
This is to show solidarity and give moral support for saving the industry against the abnormal price hike of the yarn.
“We have been facing this price hike issue since last year which resulted in an increase in our product prices ranging from 1-1.5% to 4%. We have written to the Finance Minister and Union Textile Minister to look into the steep rise in cotton yarn prices which is impacting most of the MSMEs," said Vinod Kumar Gupta, managing director, Dollar Industries Limited.
Gupta added "Many players are facing issues due to raw material shortage and might be forced to halt their operations if this continues. This Voluntary Closure is an effort to unanimously raise our voices in support of the whole industry on the abnormal price hike of the yarn which is putting pressure on not only businesses but also on the consumers”, said Gupta.
Source: The Economic Times
Indian traders have ruled out chances of any immediate cotton exports to Pakistan saying that cotton from Brazil and African countries has already reached the western neighbour.
Against its domestic need of 1.5 crore bales each of 170 kg ginned combed cotton, Pakistan normally produces 50 lakh bales every year. A major importer of Indian cotton before the start of the border skirmishes, Pakisan has stopped all imports for the last two years. The ceasefire declared earlier this month reignited hopes of normal trade ties being resumed.
Given the severe shortage of cotton bales facing the country, industry sources had discussed the possibility of India exporting at least 10-12 lakh bales to Pakistan. However, chances now appear slim given the stiff opposition to Indian imports by a section of Pakistani spinners.
A Parbhani-based cotton trader told The Indian Express that the demand for cheaper imports had come mostly from Pakistani weavers. Traditionally, Pakistan relies on US, Brazil, Uzbekistan and other countries to meet its import needs. But imports from such countries are both time consuming and costlier. India, they had argued, would be a cheaper option. “But a section of traders in Pakistan had imported from Brazil and some African countries, which they are now holding on to.
Indian imports will result in a price crash, which they want to avoid,” the trader said. Also, farmers in Pakistan will be harvesting a new crop after June and imports might affect prices later. “In case that crop is affected, Indian traders can look to export cotton later in the year,” the trader said.
y the end of January, India had exported 29 lakh bales of cotton. Prices of kapas (raw unginned cotton) have been bullish in the wholesale markets, which has seen the Cotton Corporation of India (CCI) withdrawing from the market.
Source: The Indian Express
With the government announcing production-linked incentive (PLI) scheme for 13 key sectors including telecom and automobiles, India is looking forward to a greater participation from Japan in the programme, a top government official said on Friday.
Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Guruprasad Mohapatra said the government has undertaken several policy reforms, including PLI scheme, to boost manufacturing and exports.
The key sectors covered under the scheme include telecommunication, food processing, medical devices, automobile and its components, textiles and solar PV modules.
Japan's expertise is known world over in these sectors and "we look forward to a lot of interest from Japan to participate in the PLI scheme of India", Mohapatra said at Ficci's 44th joint meeting of the India-Japan Business Cooperation Committee.
He also said that both countries are working for enhancing India's industrial competitiveness.
"India and Japan are collaborating in the form of India-Japan industrial competitiveness partnership. As a part of this partnership, it is proposed that governments of India and Japan will jointly work towards enhancing India's industrial competitiveness, and the discussions have started, joint working groups have been formed and we are making very steady progress," he added.
Mohapatra said Japan has announced an incentive package to help Japanese companies in this new era, and it provides India an unique opportunity to attract fresh Japanese investments into India.
Speaking at the webinar, Japanese Ambassador to India Satoshi Suzuki said it is important for India to have a more stable business environment to further strengthen bilateral economic ties.
Source: The Business Standard
As the government prepares to notify refund rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, exporters fear the rates may turn out to be lower than recommended by a technical committee. Inadequate remission of taxes would result in residual embedded taxes in export products and hit Indian industry’s competitiveness in world markets at a time shipments are witnessing a nascent recovery, they warn.
The government has budgeted only Rs 13,000 crore for the RoDTEP scheme for FY22, which is way below the scheme’s initial estimated annual cost of Rs 50,000 crore. Also, it’s only a third of the Rs 39,097 crore the government approved for exporters in FY20 under the Merchandise Exports from India Scheme (MEIS) for many sectors.
The GK Pillai committee, tasked with recommending the RoDTEP rates, will submit its report to the government on Monday. The scheme is supposed to reimburse various embedded levies (not subsumed by GST) paid on inputs consumed in exports.
Pillai told FE: “RoDTEP is an entirely new scheme meant for remission of taxes embedded in exports. It cannot be compared with the MEIS, which was an incentive scheme, where the benefits could have been extended in an arbitrary manner.”
Asked about the gap between the budget outlay and exporters’ estimate of the refunds required to offset all taxes, Pillai, who was formerly commerce secretary, said ‘low budget outlay’ was unlikely to be a constraint for meaningful implementation of the scheme. “The finance minister has already indicated that enough funds would be made available… Also, much of the amounts (to be reimbursed to exporters) could be in the form of drawbacks (which will get reflected in the net tax income of the government, rather than budgetary outlay),” he noted.
Since exporters themselves have no foolproof data or even complete knowledge of all taxes embedded in the export products, the committee has had a difficult task of determining the RoDTEP rates for as many as 8,000 tariff lines. The exercise has been done in a manner as comprehensive as possible in keeping with principle that taxes are not meant to be exported, Pillai said, but added the scheme could still take 2-3 years to stabilise.
Sections of the exporters’ community, however, fear the government could slash the RoDTEP rates to limit the cost to the exchequer. Any such move will delay a recovery in exports, which have maintained a roller-coaster ride in the wake of the Covid-19 outbreak. The government, they said, should keep the RoDTEP outgo open-ended and not curtail the rates to limit refunds to a certain annual budgetary outlay, if the idea is to keep exports truly zero-rated in sync with global best practices.
The RoDTEP replaced the ‘WTO-incompatible’ MEIS from January 2021 but the refund rates are yet to be declared. Under MEIS, most exporters were getting scrips amounting to 2-5% of the freight-on-board value of the shipment.
Indian exporters are already struggling with volatility in demand from many key markets like the US and EU in the aftermath of the pandemic; the need for a higher-than-usual degree of market diversification is another challenge.
In a letter to finance minister Nirmala Sitharaman on February 25, the Aluminium Association of India said even the MEIS reward rate of 2% for aluminium exports won’t “provide ample cushion to remain competitive against current bearish market condition”.
When contacted, Ajay Sahai, director-general and chief executive at the Federation of Indian Export Organisations (FIEO), said: “Our position is that the RoDTEP rates should not be lower than what the Pillai committee has recommended.”
Suranjan Gupta, executive director at engineering exporters’ body EEPC India, expected the rates to be notified soon. Both Sahai and Gupta, however, stressed that MEIS and RoDTEP can’t be equated, as the earlier scheme was viewed by critics as primarily an export subsidy programme, while the new one is fully consistent with the WTO norms. Nevertheless, some exporters have maintained that even the MEIS didn’t compensate exporters for various structural bottlenecks.
As for the RoDTEP scheme, FIEO president Sharad Kumar Saraf recently said it was impossible to offset the blow of all the embedded levies within an annual outlay of just Rs 13,000 crore (about $1.8 billion) when exports were typically above $300 billion a year. Also, since these are mere reimbursements of various taxes that exporters are not supposed to pay in the first place, these are not “benefits” or “incentives” as touted to be.
Also, exporters have asked the government to notify the RoDTEP rates at the earliest. Since exporters typically factor in the “incentives” they get under key schemes while firming up deals, the absence of clarity on RoDTEP rates is hurting their prospects, they have said.
The Pillai committee was set up only in late July last year to undertake a humongous exercise of recommending RoDTEP rates for thousands of products.
The scheme is proposed to cover levies that are not subsumed by the GST (petroleum and electricity are still outside the GST ambit, while other imposts like mandi tax, stamp duty, embedded central GST and compensation cess, etc, remain unrebated).
According to an FIEO estimate, after a Covid-induced contraction this fiscal, India’s exports could rise to $340-350 billion in FY22 as the advanced economies are expected to recover from the shock of the pandemic. However, much depends on how the government implements the RoDTEP and remove other irritants, exporters say. Exports are expected to drop by about 8%, year on year, to $290 billion in FY21.
Source: The Financial Express
The five-year Foreign Trade Policy to be announced next month is likely to give a further push to the government’s One District One Product (ODOP) initiative by providing incentives and support to items with export potential from identified districts.
“A lot of work is already being done in the Commerce & Industry Ministry to promote the ODOP initiative by working closely with States and UTs. The FTP is likely to give more incentive for production of such items with export potential,” an official told BusinessLine. Exporters’ body FIEO is carrying out a study to identify high-potential items from various districts that could be incentivised.
“We are doing a study on 25 districts and have already completed identification of items in five districts,” said Ajay Sahai, Director-General, FIEO. The five year FTP, which got delayed by a year due to the Covid-19 pandemic, is likely to be announced on April 1.
The ODOP initiative has the strong backing of Prime Minister Narendra Modi who sees it as an extension of the ‘Make in India’ programme and in also line with ‘Atmanirbhar Bharat.
The Directorate General of Foreign Trade (DGFT), under the Department of Commerce, has already started the process of engaging with State and Central government agencies to promote the initiative of ODOP after its merger with the ‘Districts as Export Hub’ initiative.
Objective of ODOP
The objective of ODOP is to convert each district of the country into an export hub by identifying products with export potential in the district, addressing bottlenecks for exporting these products, supporting local exporters/manufacturers to scale up manufacturing, and finding potential buyers outside India with the aim of promoting exports, promoting manufacturing and services industry in the district and generating local employment, according to the Commerce Department.
“The DGFT is in talks with States and UTs to ensure that the scheme is implemented in a phased manner by identifying products with the potential to make the district an export hub,” the official said.
The FTP may identify its own set of districts and products with the highest export potential to give these a further boost and strengthen the ODOP initiative, the official said.
Based on ODOP, the Ministry of Food Processing Industries (MoFPI), in partnership with States, launched an all India Centrally Sponsored PM Formalisation of Micro food processing Enterprises Scheme (PM FME Scheme) recently.
Source: The Hindu Businesss Line
The federal government plans to provide you with a brand new pre-packed insolvency course of for micro, small and medium enterprises which might be going through big monetary stress attributable to Covid.
The federal government could amend the Part 29A of Insolvency and Chapter Code to permit current promoters to barter with banks and bid for their very own firm. Nonetheless, it’ll prescribe sure default mortgage restrict and turnover restrictions for firms to make the most of MSME prepack insolvency, sources stated.
As per RBI knowledge, banks’ publicity to micro and small enterprises stood at ₹3,76,297 crore and that of medium enterprises was at ₹1,27,227 crore as of January-end.
Additionally learn: Pre-packaged insolvency decision course of within the making for Covid-hit India Inc
The current Monetary Stability Report of RBI has estimated the gross dangerous loans of banks to boost to fifteen per cent by September from 7.5 per cent within the year-ago month below the baseline situation.
Viswas Panse, founding father of NPA Guide, an unbiased firm advising careworn MSMEs, stated the prepack insolvency course of can have little success if banks proceed to focus solely on recovering cash slightly than revival of enterprise.
An unbiased advisory physique for every sector needs to be shaped and they need to be given the requisite concession and authority to revive the careworn enterprise, he added.
Mortgage default
In current instances, after seeing the daddy combating financial institution mortgage default the second era doesn’t wish to enter enterprise and that is killing the entrepreneurial ability, stated Panse.
Daizy Chawla, Senior Accomplice, Singh & Associates, stated the prepack insolvency course of carved for MSMEs intend to permit collectors and debtors to resolve the variations on a casual platform and keep away from courtroom procedures. This will even assist in reviving MSMEs with the participation of current promoters and collectors and avoidance of change in possession.
Shiju PV, Accomplice, India Regulation LLP, stated present IBC regime is extremely antagonistic and prepacks can enhance debtor-creditor relation. Nonetheless, Part 29A (barring current promoters from bidding) to be made extra versatile for prepack regime to achieve success apart from safeguarding the curiosity of operational collectors is extra vital whereas implementing prepacks, stated Shiju.
Resolving the default difficulty
Nadiya Sarguroh, Senior Affiliate MZM Authorized, stated the prepack insolvency would assist MSMEs and banks resolve the default difficulty with out being benched to rigours of IBC and promoters having full management of the entity on the identical time.
The rise in turnover restrict will broaden the horizon of the MSME entities and profit extra enterprises, she stated.
As per the revised standards, a unit with ₹50 crore of funding and ₹250 crore of turnover will fall below the ‘medium’ enterprise class whereas manufacturing and providers items with ₹1 crore of funding and ₹5 crore of turnover will likely be categorised as ‘micro’ and items with ₹10 crore of funding and ₹50 crore of turnover will likely be categorised as a ‘small’ enterprise.
Source: Newsmatters
Garment manufacturers based in Tirupur, a major textile cluster in Tamil Nadu, will shut their units on Monday to protest against the steep hike in yarn prices over the last six months which industry officials said has crippled the industry.
Tirupur-based industry representatives spoke to PTI about their ordeal in terms of order cancellations and margins being hit owing to the yarn price hike, and appealed that the Centre must regulate the exports of yarn, the key raw material in garment manufacturing.
They shared that the shortage of yarn in the domestic market has led to a rise in production cost for the hosiery and knitwear industry.
"We want the government to immediately regulate the exports to ensure the supply of yarn to the domestic industry," Tirupur Exporters Association President Raja Shanmugam told PTI.
He stressed that the raw material should not be exported until the needs of the domestic industry are met.
"We will register our protest on the ground through the voluntary closure on March 15 and take up the issue with the Commerce and Textile Ministries. We would also like to enlighten the Prime Minister's Office," Shanmugam said.
Joint Secretary of Tirupur-based South India Hosieries Manufacturers Association Shashi Prakash Agarwala said yarn prices have shot up by 40-45 per cent from October last year till now, leading to a rise in product prices.
"Exporters are unable to take new orders because yarn prices have not increased in the international market whereas our raw material prices have gone up," Agarwala said.
He argued that if yarn exports are capped, yarn prices will be controlled and the domestic garment industry will be in a better position.
“We have been facing this price hike issue since last year which resulted in an increase in our product prices ranging from 1-1.5 per cent to 4 per cent. We have written to the Finance Minister and the Union Textile Minister to look into the steep rise in cotton yarn prices which is impacting most of the MSMEs," said Vinod Kumar Gupta, Managing Director, Dollar Industries Limited.
He cautioned that many players are facing issues due to raw material shortage and might be forced to halt their operations if this continues.
"This Voluntary Closure is an effort to unanimously raise our voices in support of the whole industry on the abnormal price hike of the yarn which is putting pressure on not only businesses but also on the consumers," Gupta said.
Dollar Industries has a manufacturing facility in Tirupur.
Source: The Economic Times
A secure policy is urgent to build stable yarn price because abrupt changing without prior notice is killing the manufacturing sector.
Being a most prone income sector of Bangladesh economy, when the wheels of the textile industry started spinning a successful story, the most important material ‘yarn’ price is skyrocketing and affecting the overall profits. Increasing cotton yarn prices is creating new hassles.
An extraordinary general meeting (EGM) of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) was held at a hotel in the capital recently to fix yarn prices at least for a month which may help them to negotiate prices of their goods with global importers.
They also demanded some control on the export of cotton and yarn, stressed the need to focus more on value-added exports of garments rather than raw cotton or fabric as the value addition is over six times if the same amount of cotton yarn is exported.
Shafiul Islam Mohiuddin, MP and former FBCCI President was the chief guest, and Selim Osman, President of BKMEA, moderated the program.
The EGM focused on the pandemic, the main culprit behind high raw materials’ price and slashed demands of finished goods. It is adversely affecting the competitive strength and performance of the apparel industry. Besides price fluctuation, fabric availability has become a serious issue as weaving units are not making any delivery commitments. Sandwiched between spiraling raw material (yarn) cost and rise in cloth prices, weaving units have been forced to cut production.
Managing director of KAP’S Fashion-Shamima Akhter talked about good responses from the buyers and better work order flow is but without any declaration, changing yarn prices is forcing Bangladeshi exporters to lose their global competitiveness.
“It’s hindering to fix a deal with the buyers within the set prices. It goes up by $0.10 to $0.20 per kilogram amid negotiations between a buyer and a yarn manufacturer,” said Zakir Hossain Jewel, Managing Director of Best Style Compositor.
Spinning mills are flummoxed, as cotton accounts for nearly 70% of their total costs. Resistant textile firms buy yarn at higher levels and so mills could hike prices by only 37-40%. This impacts profit margins because when mills agreed to reduce yarn prices, the cotton price goes higher.
The only hope is for cotton prices to come down. But that seems unlikely. Though the International Cotton Advisory Committee lowered its forecast of global cotton production, with rising consumption, global cotton stocks are down to 1989-90 levels.
Again, most mills have barely a month’s stock of cotton, whereas contracts with the textile makers are of longer duration at lower price levels.
The raw material cost has increased by 40 percent, while cloth prices have not moved up in proportion to firm yarn prices. This has hit the weavers, especially small-scale units. The daily production cloth has fallen greatly due to surging prices of various types of yarns.
BKMEA data analysis showed the prices of mostly consumed 30-carded yarn rose to $4.81, which was $2.78 last year. In February 2021 price went up to $3.77 per kilogram that was $2.94 in 2020.
Yarn prices have simultaneously increased by 15%. The industry is jacking up the cotton yarn price recurrently and disproportionately. Corporate profits have also increased including 30% of the processing fee.
A tripartite meeting among Bangladesh Textile Mills Association (BTMA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BKMEA was called to put a leash on the price hike. They also urged to inform the buyers about the change 15 days prior.
A sharp increment of the cotton price is liable for a global yarn price surge as it’s an imported product for many non-cotton-producing countries. The reality of the apparel and textile industries is now demanding a set price keeping a 3% profit based on the index of global cotton prices.
BTMA data found per pound cotton cost $0.90 to over a dollar this month, which was $0.56 to $65 in 2020.
Customs officials’ harassment is like rubbing salt on the wound of exporters. Within the next four months, two Eids will be held, when workers’ wages and bonuses have to be paid. More or fewer businessmen have to repay both loan installments and interest so the meeting earnestly requested the government to consider either the installment or the interest.
The government should not take any steps that may pressurize the exporters as like repayment of loans. Further extension for repayment can be given, said Fazlul Haque. Analysts say that the profit before interest and tax of most midsize companies is only two-three times the interest.
A new stimulus package considering the present situation is needed just to survive.
BKMEA First Vice President Mohammad Hatem proposed the government stop harassment by VAT and Customs officials.
He also said- few government officials are making the business process harder and unnecessarily harassing the exporters, where the government is working hard to improve as well as ease business.
BGMEA Vice President SM Mannan Kochi and former Senior Vice President Faruque Hassan and BKMEA director Fazle Shamim Ehsan were present among the others.
Source: Textile Today
Indian rating agency CRISIL expects the country’s gross domestic product (GDP) growth to rebound to 11 per cent in fiscal 2021-22 after an estimated 8 per cent contraction this fiscal, as four drivers—people learning to live with the new normal, flattening of the COVID-19 affliction curve, the vaccine rollout and investment-focused government spending—converge.
However, as in this fiscal, the pace of growth will differ in the first and second halves next fiscal. While the first half next fiscal will benefit optically because of low-base effect, the second half would see a more broad-based pick-up in economic activity owing to a commodity price lift, large-scale vaccinations and likely stronger global growth, CRISIL said in a press release.
“The journey from the pervasive darkness cast by an unprecedented pandemic to the beginnings of a clawback has not been easy. Policymakers and regulators have primarily facilitated the revival. India’s medium-term growth now hinges on a kickstart of the investment cycle. There are early positive signs, powered by government spending such as through the National Infrastructure Pipeline, demand-driven capex, and the centre’s production-linked incentive (PLI) scheme,” managing director and chief executive officer of CRISIL Ashu Suyash said.
But recovery won’t be easy, with scars of the pandemic deep for small businesses and the urban poor; the rural economy has been more resilient versus urban, and services are lagging manufacturing in recovery. Trade has also normalised faster than rest of the economy, with both exports and imports scaling pre-pandemic levels.
While exports are recovering well for large industries, and agriculture and allied sectors, they remain weak for labour-intensive, small-enterprise driven segments such as gems and jewellery, garments, and leather products because of their discretionary nature, CRISIL said.
Corporate revenue growth has surprised with a V-shaped recovery in the first nine months of this fiscal by cresting three tailwinds: resilience in exports of information technology services and pharmaceuticals, the commodity upcycle, and price hikes that offset volume declines in automobiles.
Next fiscal, revenue should grow 15-16 per cent, led by volume recovery across sectors on two consecutive low-base years and higher investment spend by the government, especially in core infrastructure segments of roads, railways, urban infrastructure. Shorn of the optical base-effect, revenue will be only 8-9 per cent higher than in fiscal 2018-19.
In the context, medium-term prospects of the economy hinge critically on revival of the investment cycle, which has been one of the biggest impediments to structural growth for many years now. The recent pick-up in public investment provides a glimmer of hope.
CRISIL Research’s analysis of the PLI scheme indicates potential incremental revenue generation of ₹35-40 lakh crore over the coming five years across 14 covered sectors, aided by ₹2-2.7 lakh crore capex in next 24-30 months.
The incentive-to-capex ratio is particularly attractive at more than 3.5 times for mobile phones, electronics, telecom equipment, and information technology hardware where our local manufacturing base is relatively low.
Both trends will drive a 45-50 per cent surge in industrial investments in the next fiscal after a fall of 35 per cent this fiscal. After this surge, investment growth will moderate to 7 per cent through fiscal 2024-25.
Source: Fibre2Fashion News
There are green shoots visible in various sectors of the economy and the country is already looking at a 'V-shaped' recovery, Minister of State for Finance and Corporate Affairs Anurag Thakur said on Saturday.
"India is already looking at 'V-shaped' recovery. Along with the green shoots in various sectors, in the month of February, FPI inflows were Rs 25,787 crore," Thakur said at a virtual conclave organised by the Institute of Actuaries of India.
After two consecutive quarters of contraction, the country's gross domestic product (GDP) entered into a positive territory with a growth of 0.4 per cent in the October-December quarter of the current fiscal, according to the data released by the National Statistical Office (NSO) in February.
Thakur said the country' foreign exchange reserves, which have been steadily increasing over the last few months, had touched all time high at USD 590 billion in January 2021.
He said the accretion to the forex reserves in the last eight month was USD 100 billion.
"These are signs of confidence that the global funds and investors look at India as a destination to invest and they are bullish about India's growth story," Thakur added.
Source: The Business Standard
Sportswear imports by the UK increased 9.79 per cent to $234.0 million in 2020 (2019: $213.1 million). UK experienced this growth when the world’s textiles and apparel businesses were struggling with spread of Covid-19 pandemic. By leveraging trends in sportswear, UK’s imports for the category in 2021 is further expected to rise 10-15 per cent to $269.1 million.
The reason behind the surge in UK's sportswear imports is people’s inclination towards fitness and healthy life, as UK’s population became more focused on overall well-being, according to TexPro. In addition to this, wearing sportswear became more popular amongst everyone while working from home.
Consumers now demand more sportswear and leisurewear compared to casualwear and formals.
In December 2020, the UK and Vietnam signed a free trade agreement. Under the agreement, all the customs duties between the two countries will be eliminated once it is implemented fully. The agreement will likely improve apparel exports of Vietnam as the apparel produced there is very competitive in UK.
Meanwhile, top sportswear brands like Adidas, Nike, Puma, Reebok and Slazenger are fully prepared to fulfil their local and international orders with quality and attractive products.
Source: Fibre2Fashion News
Vietnam’s textile and apparel industry will now focus on sportswear and yarn, according to the Vietnam National Textile and Garment Group (Vinatex), whose general director Le Tien Truong recently said as the demand for face masks and personal protective equipment (PPE) will shrink rapidly now, many firms are confident of altering plans and finding new markets in a changed scenario.
Sportswear has arguably been the most successful segment during the pandemic as awareness of physical exercise rose.
The compounded annual growth rate for the sportswear market in the last five years was 6.5 per cent, 1.5 times the industry average, and it is expected to be worth $479 billion globally by 2025.
The Thành Cong Textile Garment Investment Trading JSC, one of the most successful businesses in 2020 that exported fabric masks and PPE, has stopped taking orders for such items this year and is focusing on traditional products like T-shirts and sportswear, demand for which would continue to increase. There are already enough orders for sportswear for the first six months of the year, according to a report in a Vietnamese newspaper.
According to the Vietnam Textile and Apparel Association (VITAS), many businesses now have orders until the end of April, mainly for sportswear.
Source: Fibre2Fashion News
Chinese Ambassador to Pakistan Nong Rong has said that the startling success of Challenge Textile Factory with the Chinese investment of $60 million has paved the way for numerous investments under CPEC, a statement said on Friday.
He expressed these views during his visit to $60 million Challenge Textile Factory on Lahore-Multan Road where he was briefed by Karen Chen, managing director of the company. The ambassador said Pakistan and China are not only neighbours but also brothers and after CPEC, Pakistan has gained historical significance, as China now see many investment opportunities that will create thousands of jobs in Pakistan.
More Chinese companies are ready to invest billions of dollars in various sectors in Pakistan, which will see an improvement in Pakistan’s economy. Rong said with the resumption of export of textile products from the factory, Pakistan’s foreign exchange reserves will also increase.
Later, the ambassador visited various sectors of the textile factory and appreciated the arrangements made.
Chen briefed him on the investment in the textile sector. Employees have been provided with good pay, as well as transport, food and accommodation, he said, adding that after the $60 million Chinese investment, the group will now invest another $150 million in textiles.
Source: The News
Hyderabad-based JK Agri Genetics Ltd, an arm of the JK Organisation, is collaborating with the Bangladesh government to hold field trials of genetically-modified cotton in the neighbouring country.
“The Bangladesh government is conducting the field trials, which have been completed for the first season. The results are good. Field trials will be held for the second season this year sometime between April and November,” said Gyanendra Shukla, President and Director of JK Agri Genetics, better popularly known as JK Seeds.
The US Department of Agriculture (USDA), in a note on the Bangladesh development, said that Dhaka’s Cotton Development Board (CDB) began trials of the genetically-modified or bacillus thuringiensis (Bt) cotton with two varieties — JKCH 1947 Bt and JKCH 1950 Bt — which can resist bollworm and Fall armyworm in the plant.
According to the USDA, the CDB obtained the Bt cotton varieties under the material transfer agreement from JK Seeds, an erstwhile division of JK Tyres and Industries Ltd.
“Though the first season trials gave good results, more trials need to be done. Once the Bangladesh government is satisfied with the results, it will begin the deregulation process wherein farmers will be allowed to cultivate the Bt variety,” said Shukla. The CDB completed the greenhouse trial of the cotton varieties successfully on March 4 last year, and it got the permission of Bangladesh’s National Committee on Biosafety Clearance to start confined field trials for the current crop year (August 2020-July 2021), the USDA said.
Increasing output
“We are doing nothing on our own. Nor are we engaged in any commercial activity in Bangladesh,” the JK Seeds President said, hinting that the Sheikh Hasina Wajed government is independently handling these activities, while his company is collaborating.
Bangladesh’s objective behind these trials is to develop “efficient genetically-modified cotton” as part of its efforts to increase cotton production. Currently, it meets about 25 per cent of its raw cotton requirements through imports from India.
The USDA has pegged Bangladesh’s 2020-21 crop at 1.86 lakh bales (of 170 kg) on 46,000 hectares.
Source: The Hindu Business Line
Chargeurs PCC Fashion Technologies has launched a new brand identity, Sustainable 360, for its permanent line of interlinings launched just over a year ago as the Sustainable 50 collection. Chargeurs provides end-to-end solutions for fashion apparel brands by designing interlining, a technical fabric used to help garments retain their shape and structure.
The new name marks the collection’s evolution into a stand-alone brand and reflects Chargeurs’ full-circle commitment to sustainability and corporate social responsibility. The company also announced that Sustainable 360 will include innovative new performance interlinings and linings, such as those made with Lainiere Performance Silver for antimicrobial and anti-odour protection, Chargeurs said.
The Sustainable 360 product line is the first complete collection of both interlinings and inner components such as shoulder pads, canvas chest pieces, and undercollar felt made with eco-responsible materials, including BCI cotton, GRS-certified recycled polyester, hemp, and recycled plastics. Since its launch, the collection has seen widespread adoption by leading brands that include Adidas, Claudie Pierlot, J. Crew, Macy’s, Madewell, PVH, Target, and Uniqlo. Banana Republic Men’s, Columbia, and Itochu are among the Chargeurs PCC customers that have committed to creating whole ranges using Sustainable 360 interlinings exclusively in their products, according to a media statement by Chargeurs.
Chargeurs has rolled out a series of innovations since initially launching its sustainable interlining collection, including manufacturing a line of circular-knit interlining products using an innovative, process patented by partner mill Weemeet that requires no water. The company is also creating coatings for products using recycled polyvinyl butyral (PVB), which is commonly used as a safety layer inside auto and building glass and then landfilled. At the launch, the Chargeurs sustainable collection offered 50 items, but the range has now expanded to include more than 250 articles. In addition, the company can now sustainably manufacture any base material in its catalogue of thousands of products, including nylon, polyester and cotton.
“Our sustainable collection has seen phenomenal growth since launching a year ago and based on that success, we designed the new Sustainable 360 brand identity to identify this as a permanent collection and more clearly convey to the market the breadth and benefits of our offering. The name better illustrates what sets us apart from our competition, our complete commitment to corporate social responsibility, which goes far beyond just using recycled and sustainable materials,” Audrey Petit, managing director of Chargeurs PCC Fashion Technologies said in a statement.
“Our brand is committed to producing clothing with as close to 100 per cent sustainable materials as possible. The Sustainable 360 line allows us to source high-quality, sustainable inner components backed by a complete CSR programme. Chargeurs PCC’s full-circle commitment is right in line with our mission to lead the industry into new best practices in sustainability,” Tim Reid, head of brand at State of Matter, owned by Itochu Prominent, said in a statement.
Source: Fibre2Fashion News
B.I.G. Yarns, a division of Beaulieu international group, has announced the launch of EqoCycle, a fully recyclable PA6 yarn with 75 per cent recycled content, offering the same high-quality performance of virgin PA6 yarn. Beaulieu international group is a vertically integrated group producing raw materials, semi-finished and finished products.
The new recycled yarn mainly based on post-industrial waste supports contract, automotive and residential carpet manufacturers with a drop-in circular solution to reduce the ecological footprint of their end products, according to B.I.G.
EqoCycle is made with recycled granulates derived from pre-consumer recycled and regenerated PA6, certified by Control Union for Global Recycled Standard (GRS) Certification. The use of less virgin materials implicates a decrease of fossil fuels by 58 per cent and a 27 per cent decrease in energy consumption. On top, EqoCycle yarns allow a reduction of 37 per cent of CO2 eq./kg compared to the fossil based yarns. The environmental impacts of EqoCycle with 75 per cent recycled content were calculated through an LCA analysis, verified according to ISO 14025 and EN 15804+A1 and published in an Environmental Product Declaration (EPD registration number S-P-02415), B.I.G. said.
EqoCycle is the latest circular solution in B.I.G. Yarns’ PA6 portfolio, joining EqoBalance PA6, based on biomass balance renewable resources, which offers up to 75 per cent CO2 reduction. Both exemplify the company’s on-going investment in developing new products that better serve customers’ needs in a sustainable way. B.I.G. Yarns fully pursues opportunities to support and solve the global environmental challenges through innovation, investment and collaboration, as part of its sincere belief in, and broader commitment to, social responsibility, the company said in a press release.
The innovation of EqoCycle and EqoBalance PA6 aligns with the company’s active integration of the UN Sustainable Development Goals (SDGs) into its business activities, creating value for customers and engaging employees and value chain partners. Customers have the assurance that for every 1.000 tons of EqoCycle yarn, 13,562 barrels of oil are saved and 2.700 tons of CO2 emission are reduced, compared to PA6 traditionally made from virgin materials.
“EqoCycle is a perfect example of how higher resource efficiency in our industry can promote greater circularity in our customers’ industries. Minimising waste, re-using materials, and saving energy and carbon emissions in production, it provides our customers and carpet brands with a new sustainable alternative that won’t compromise their end-product performance but will support their increasing focus on CO2 reduction and global warming potential. All part of our wider commitment to encourage decoupling from the need for only virgin feedstocks and moving towards a circular economy for yarns and soft flooring industries,” Emmanuel Colchen, general manager yarns division said in a statement.
Source: Fibre2Fashion News
