The government should aggressively enter into as many free trade agreements as possible with select textile markets in Asia and European Union to safeguard the Indian textile and apparel industry and set off the negative impact of the recently negotiated Trans-Pacific Partnership (TPP). “The TPP is a trade agreement that will open markets and provide countries like Vietnam a zero-duty access to the US market for textiles, while Indian players will have to pay 14 per cent-32 per cent duties, which will make them uncompetitive. It would have been much better had India too joined the TPP,” a report released by the CII and Wazir Advisors said.
SOURCE: The Hindu Business line
The Northern India Textile Research Association (NITRA) under textiles ministry has signed a memorandum of understanding with the Technological University of Tajikistan to give a boost to bilateral trade between the two countries. The two sides signed the MoU at CII Texcon 2015 organised by industry lobby Confederation of Indian Industry in Delhi on October 16. The MoU is aimed at forging close links between the two countries to promote textile enterprises in Tajikistan and Kyrgyzstan, along with allowing India's small and medium-sized enterprises to explore new markets in Central Asia. Armen Zargaryan, coordinator of International Trade Centre and leader of Tajikistan delegation said, "We see India as one of the knowledge centres in the world which can impart tremendous skills and training, and get in touch with new vendors in Central Asian countries."
The 13-member delegation will sign another MoU with the National Institute of Fashion Technology, also under the textiles ministry. Zargaryan said it is a mutual beneficiary agreement for enterprises in both countries to grow trade linkages and expand businesses in the coming years. Geneva-based International Trade Centre is an agency of the United Nations which promotes trade cooperation between developing countries.
SOURCE: The Economic Times
Technical textiles market is set to gain from stronger ties between the United States and India which was agreed in September 2015 to facilitate exchanges on technical textiles and in particular standards adopted across the industry. The United States has agreed to facilitate exchanges between India's Centre of Excellence and US universities; a move which is likely to accelerate the adoption of technological advancements in the textile sector. The United States is keen to forge closer ties with India as this economy represents only America's 11th largest trading partner and 18th largest export market despite representing one of the fastest expanding global economies. This new partnership is set to allow greater collaboration in the private sector between the Confederation of Indian Industry (CII) and the American National Standards Institute (ANSI) by establishing a portal containing standards information to be used and implemented by small to medium sized companies operating in both India and the United States.
The textile commissioner Kiran Soni Gupta has recently stated that India's technical textiles industry is forecast to expand by 20% each year during the period 2015 to 2020 to total estimated revenues of US$30 billion by 2020. In India, the technical textiles industry is seeing strong growth in medical, geo-textiles, protective textiles and agricultural textiles applications. The Indian government has recently implemented four schemes including a scheme to strengthen standards and collaboration across the textiles industry, a scheme for implementing agri-textiles in the north-eastern region and provided a restructured technology fund scheme with increased funds. Stronger ties established with the United States across the technical textiles industry fits well with the Indian governments main aims.
Recent analysis covering the global technical textile market highlights that the global industry is forecast to output 42.2 million tonnes of technical textiles by 2020. This output volume is estimated to generate total global revenues of US$193.91 billion by 2020. Analysts researching the global industry have highlighted the automotive and medical sectors as some of the fastest expanding in adopting technical textiles. The leading players operating in the technical textiles industry are forecast to benefit from future growth and these include E. I. du Pont de Nemours and Co (U.S.), Asahi Kasei Corporation (Japan), and Freudenberg & Co. KG. (Germany).technical textiles market
New opportunities are arising from the strong uptake of technical textiles, globally. For instance, an EU-backed project to develop an industrial-scale facility in Poland which recycles technical textile waste is expected to be operational in 2016. This plant aims to recycle airbags into high-quality polyamide 6,6 grades and as the technical textiles industry expands rapidly analysts expect more of these plants to become operational. Textile companies operating in the developed markets are seeking stronger ties and opportunities in India and China. In line with these developments, J&D Wilkie announced the opening of a £3 million factory in Jianxing, China to produce technical textiles. J&D Wilkie director Bob Low stated that this new plant opening will help grow its business in China and enable the company to strengthen its position in European markets. Significant opportunities exist for textiles companies to exploit the forecast growth in technical textiles demand over the next few years and it is clear that to exploit such opportunities, leading companies will be forced to strengthen ties with Indian and China textile markets. By 2020, the Indian technical textiles industry is forecast to represent almost 15.5% of global revenues.
SOURCE: The Companies and Markets
Bombay Dyeing & Manufacturing Co today said its proposed sale of a textiles processing unit at Ranjangaon in Maharashtra for Rs 230 crore to Oasis Procon stands cancelled due to failure of the latter to make required payments on time. The company's board in May this year approved selling of its textiles processing unit at MIDC Industrial Area, Ranjangaon on a slump sale basis to New Delhi-based Oasis Procon Pvt Ltd. As per the terms and conditions reflected in the term sheet, Oasis Procon was obliged to complete the proposed transaction not later than July 31, 2015, Bombay Dyeing & Manufacturing said in a BSE filing. "The proposed purchaser failed to consummate the proposed transaction and make the requisite payments and therefore the earnest money of Rs 25 lakh was forfeited by the company in accordance with the terms provided in the term sheet and accordingly the term sheet stands automatically cancelled," it added. The company had planned to utilise the proceeds to repay existing loans and reduce interest burden, among other business purposes. The sale was however subject to shareholders' approval and other customary closing conditions including technical, financial and legal due diligence. It had received shareholders' nod in June this year. As a term of the sale, the company had agreed not to directly and/or indirectly engage in export of bed linen/bed linen fabric to the US for a period of five years from the closing date.
SOURCE: The Economic Times
The Aditya Birla Group on Friday launched a fashion focused e-commerce portal abof.com, to compete with the likes of Jabong and Myntra. The portal will sell apparel, footwear and accessories. It is targeting the 18-25 age group. Though Birla has a fashion portal called Trendin.com, it mostly sells brands of group company Madura Fashion, which include Louis Philippe and Van Heusen. Abof.com will sell curated merchandise and price products sharply. It will sell brands from the group and as well external brands. “We will not go in for the discount game. We believe that if you offer a great product at a great price, you can can stay away from the discount game,” said Prashant Gupta, president and chief executive officer of abof.com. The portal will also launch an app shortly. The portal will sell 55 brands and 1,000 styles to begin with and launch a new collection every month. “With abof.com, we aim to offer a wide but curated range of merchandise and a differentiated shopping experience that can compete with the best in the world. We see abof emerging as the most admired player in online fashion within the next three years,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group. “We want to be the Apple (the US tech company) of the industry. We want to do few things, but do them extremely well,” said Gupta.
Though the site was focused on millennials, it would not retail kidswear, Gupta said. The site’s landing page would not have banners and catalogues but would be visually rich, like an Instagram page, he said. To differentiate itself, the portal will deliver on Sundays and is equipped with a 3D virtual trial room, where customers can instantly view themselves in any clothes by providing basic body proportions. The portal has tied up with IBM, Cognizant, Razorfish and Oracle for technology solutions and it has a style quiz to understand the customer’s preference. The portal has set up a large warehouse in Bengaluru and is looking to set up one more in the national capital region. The group has tied up with three to four firms for last-mile delivery. It will deliver in 400 cities.
SOURCE: The Business Standard
India's apparel exports are set for a boost in the next two years despite a slowdown in demand from China and a preferential treatment given to competing countries in major consumer countries like the European Union and the United States. Credit rating agency ICRA forecasts India's apparel exports to rise by 20 per cent in the next two year to $20 billion by calendar year 2016 as against an estimated $18 billion in 2015 and $16.5 billion in 2014. The domestic apparel market has grown at a CAGR of around 10 per cent over the last five years with growth in the economy and rising income levels, and is expected to maintain the growth rate over the medium term. While there could be short term blips on account of moderation in economic growth and increase in inflation or interest rates as witnessed in FY 2009 and FY 2012, the long term prospects for the industry is favorable.
Meanwhile, ICRA stressed on the problems faced by domestic apparel industry which needs structural changes to sustain the long term growth. Echoing similar response, R K Dalmia, Chairman, The Cotton Textile Export Promotion Council (Texprocil), said, "The export trends are not very encouraging. While a slowdown in exports widens the gap in trade deficit in our sector, surplus capacity finds an outlet only through the channel of exports. Thus, the textile industry needs interest rates subvention, re-calibrated product market matrix to include exports to emerging markets as exports are growing in developed markets from the countries with preferential access."
While speaking on the occasion of the Platinum Jubilee celebration of All India Exporters' Chamber here on Thursday, Dalmia said, textile, as it stands today, the export trends are not very encouraging. While a slowdown in exports widens the gap in trade deficit in this sector, surplus capacity finds an outlet only through the channel of exports. A large part of the reason for the sluggish growth lies in the overall slowing of demand in the overseas markets too. Apart from a general decline in overseas demand, over-dependence on China especially for cotton and cotton yarn exports, is magnifying the overall decline in exports as China slows down. Further, the high cost of export finance which is around 10 per cent in India as compared to 3-4 per cent in competing countries like Vietnam, Bangladesh and Pakistan is also having an impact on India's competitiveness.
The new Merchandise Export from India Scheme (MEIS scheme) introduced in the Foreign Trade Policy of 2015-20 has included exports of very few products to select markets. Many important markets like African countries, South Korea, China and Vietnam have been left out of the scheme. Non-coverage of exports of mainstream products to leading markets under the MEIS is having its own impact on India's textiles exports as the margins have shrunk due to price pressure from competing countries. He further added that Indian cotton textile products also suffer the disadvantages of differential duties in major markets. Competing countries like Pakistan, Bangladesh and Vietnam get the benefit of zero duty or preferential duties in major markets like the EU. Available data clearly demonstrates that the only countries recording positive growth currently in the falling EU market are the countries with preferential access like Bangladesh, Vietnam and Pakistan.
SOURCE: The Business Standard
The India-Africa Forum Summit from October 25 to 29 is expected to see discussions from trade to terrorism. This will be the third such summit ever since it started in 2008. The latest summit was in 2011. “The African continent is marked by resurgent economies. It is very important in trade and strategic terms,” Navtej Sarna, secretary (west) in the external affairs ministry, told reporters here on Friday. The summit, likely to be attended by heads of 54 African states, will be preceded by a meeting of trade ministers, as Africa continues to be a strong potential trading partner, with two-way trade reaching $70 billion (Rs 4.53 lakh crore) in 2014-15. “We have done extremely well in trade, which has expanded by about 20 times from 2001 to 2015 … In the years to come trade will only go northwards,” Sarna said.
According to Syed Akbaruddin, additional secretary and convener of IAFS, more than 400 business delegates will be attending the summit across sectors such as energy, health, technology and innovation. “Prime Minister Narendra Modi has invited all of Africa. We have gone out of our way to represent Africa in an inclusive manner,” Akbaruddin added. On India’s approach to Africa as against China’s, which has a huge presence in the continent, Sarna said it was defined by the relationship established since India’s independence. “We have been partners with Africa for capacity building since the early days. We were there as the earliest peace-keepers and we were there with the major struggles that Africa had with discrimination and apartheid. Our approach stands on its own,” Sarna added. During the summit there will be substantial discussions on counter-terrorism. Singapore and the UAE have been also been invited to attend the summit.
SOURCE: The Business Standard
External Affairs Minister Sushma Swaraj sought Philippines support to assist in India’s entry into the Asia Pacific Economic Cooperation. APEC is the premier Asia-Pacific economic forum which aims to support sustainable economic growth and prosperity in the region. Swaraj held a meeting with her counterpart, Albert F Del Rosario here.
SOURCE: The Hindu Business Line
The Foreign Trade Association (FTA), a leading business association of European and international commerce that promotes the values of free trade and sustainable supply chains, has recently released a publication that highlights Bangladesh's extraordinary social and economic development in recent years and the challenges the country needs to address to work toward a brighter future. The report cites inputs from the European Commission, World Bank and the IMF and points out that the readymade garment (RMG) industry is a vital force for development in Bangladesh. The country is the world's number two garment exporter behind China and exported garments worth $24.5 billion in 2014. The quota- and tariff-free access to the EU, Canada, Australia and Japan supports the export competitiveness.
The RMG sector contributes significantly to trade, employment and economic growth, indirectly supporting the livelihoods of around 40 million people, about a quarter of the country's population. The number of factories increased from 384 in 1985 to over 5600 in 2014, currently employing 4.2 million people, making up 81 per cent of total exports and contributing to around 16 per cent of the country's GDP. The RMG sector is also a driver of social progress. In the last 25 years Bangladesh has experienced the empowerment of women who now represent 80 per cent of the sector, which has liberated more than four million from the bottom of the development pyramid. By receiving their own income women become more independent and have a voice in their family.
But despite the impressive economic growth, Bangladesh still faces significant challenges from political unrest, labour conditions, environmental issues, building/factory safety, structural reforms and corruption, the report said. The report also cites a World Bank report to demolish a few myths about Bangladesh. It demolishes the perception of acute poverty in the country and points out that since 1992, the poverty rate has dropped from 57 per cent to 25 per cent in 2014, coupled with increased life expectancy, literacy, and per capita food intake. Another myth was that a small minority of businessmen raked in high growth profits. The Gini Index is a statistical measure of income distribution, proves that myth wrong. A Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. Bangladesh has 32.1. This is impressive compared with China (42.1) and the US (41.1), while Germany (28.3) is in reaching distance. According to the report, overpopulation is a not really disadvantage for the country and its economy because a high population can be turned into a significant demographic dividend in the coming years, if more and better jobs can be created. The average birth-rate of 6 children per woman (1980) has come down to 2.2 children per woman (2014).
SOURCE: Fibre2fashion
President Joko Widodo has urged his administration to fight illegal textile imports, which he says poses a threat to the local labor-intensive textile industry. “I’ve asked the chief of the National Police and the attorney general to give the customs and excise office their full support to prevent illegal textile imports,” the president said on Friday during an inspection of seized illegally imported textiles at the customs headquarters in Jakarta.
Citing data from the Indonesia Textile Association (API), Joko said revenue for local producers was down 30 percent on the year, and blamed the downturn to illegal imports. The API also claims its members have had to lay off a combined 6,000 workers, out of an industry-wide 1.5 million, to offset for the loss in revenue. “I’ll give you an example: Illegally imported bed sheets from China can cost 30 to 40 percent less than locally made bed sheets. We should not let this happen and we should help the local industry to grow,” Joko said. Heru Pambudi, the customs and excise chief, said his office would strengthen cooperation with law enforcement agencies and improve its IT systems to better crack down on the illegal imports of textiles.
SOURCE: The Jakarta Globe
International conference on African textile industry to be held in Addis Ababa for three days starting from October 19, 2015, which will give an opportunity for the country to display the potential it has in the textile and garment sector and bring in foreign investors and buyers as well. The participants at the conference will be investors engaged in cotton, textile, tailoring and stakeholders that support the sustainability of the growth of the sector, a press release issued by Ethiopian Textile Industry Development Institute stated. Cotton made in Africa is an initiative of the Aid by Trade Foundation which was established in 2005 based on the conviction that only by sustainable development can the livelihoods of future generations and vital resources be protected. Beyond supporting sustainable cultivation of agricultural and forestry products, the long-term aim is to further develop the value chain in those countries where the raw materials are produced in order to generate maximum added value, it was learned. Holding the conference in Addis Ababa will benefit Ethiopia to share experiences in textile and garment industry.
SOURCE: Yarns&Fibers
The recent pact on the Trans-Pacific Partnership (TPP) trade agreement is credit positive for all 12 participating sovereigns, but especially for those in Asia, Moody's Investors Service said in a report titled "Trans-Pacific Partnership to Bolster Trade and Growth, a Credit Positive." The deal will reduce the cost of trade and open up new investment opportunities, supporting growth. While full details of the agreement have yet to be published, greater access to the US for their goods should help to make Asian countries the biggest beneficiaries in GDP-relative terms, the report said.
The TPP involving Australia (Aaa stable), Brunei (unrated), Canada (Aaa stable), Chile (Aa3 stable), Japan (A1 stable), Malaysia (A3 positive), Mexico (A3 stable), New Zealand (Aaa stable), Peru (A3 stable), Singapore (Aaa stable), the US (Aaa stable) and Vietnam (B1 stable), will increase market access, lower or eliminate tariffs and set standards in areas including intellectual property rights, environmental and labor conditions, and government procurement. Vietnam's apparel and shoe manufacturers will profit from lower import duties with the US and Japan. Likewise, Malaysia's palm oil, rubber and electronics' exporters will see substantial value from the TPP deal. In Japan, cars and auto-parts makers in particular stand to do well out of the agreement.
Australia and New Zealand's farmers will also benefit from increased market access and lower tariffs on their goods. For Singapore, which has trade agreements in place with nine TPP countries, the TPP will complement these existing pacts and boost investment and trade flows with partner nations. Another positive aspect of the trade negotiations has been to act as a catalyst for reform in several countries in the region, such as Japan and Vietnam. One modestly credit-negative aspect to the trade deal is that it could hurt governments' fiscal balances by reducing their customs revenues over the longer term. But additional receipts from an expected uptick in economic growth due to the agreement are likely to offset foregone tariff revenue, the report said.
SOURCE: Fibre2fashion
Back to top
