The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 31 JULY, 2021

NATIONAL

INTERNATIONAL

 

High tariffs faced by Indian exporters in EU, UK affecting exports performance: Govt

 • India's textiles exports in 2020 stood at $29.61 billion, while the shipments of Bangladesh, Vietnam and Cambodia in that year were aggregated at $37.95 billion, $37.10 billion and $7.77 billion, respectively.

High tariffs faced by domestic exporters in the European Union and the UK as compared to zero duty access given by these countries to nations like Bangladesh and Cambodia are affecting India's exports performance, Parliament was informed on Friday. Minister of State for Textiles Darshana Jardosh also said that the textile industry has been hugely affected due to the outbreak of COVID-19 pandemic. India's textiles exports in 2020 stood at USD 29.61 billion, while the shipments of Bangladesh, Vietnam and Cambodia in that year were aggregated at USD 37.95 billion, USD 37.10 billion and USD 7.77 billion, respectively. "High tariffs faced by Indian exporters in key markets such as the EU and the UK as compared to zero duty access given to competing nations like Bangladesh and Cambodia are affecting India's exports performance," she said in a written reply to the Lok Sabha. In a separate reply, she said textiles exports to China have increased to USD 1.56 billion in 2020-21 as against USD 1.13 billion in 2019-20. "The global pandemic of Covid-19 has adversely affected the textile sector such as restriction on social gathering, migration of labourers, disruption of supply chain, thus affecting all the stakeholders from farmers to traders/exporters in the value chain. However, the situation improved with time and production and exports looked up," she said. Jardosh also said that during cotton season 2020-21 (up to July 23, 2021), the Cotton Corporation of India (CCI) has procured seed cotton equivalent to around 91.893 lakh bales under MSP operations. In another reply, the minister said due to Covid-19 pandemic and nationwide lockdown imposed by the various state governments, the production activities in all National Textile Corporation (NTC) Limited mill units including Minerva mill units were put on hold from March 25, 2020 "During this period, the employees were paid salary regularly as per their status by NTC out of its cash reserve. After lifting up of the lockdown and as per availability of raw material, NTC restored operation of 14 mill units from January 2021 onwards," she said. However, the second wave of Covid-19 pandemic again led to closure of all NTC mill operations in April 2021 and now NTC has restored operations in some of its mills in July 2021 as per raw material availability, she added.

Source: Live Mint

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'India, UK to gain a lot from each other by exploring possibility of signing FTA'

 Speaking at the webinar of the Trade Promotion Council of India (TPCI) on 'India- UK Free Trade Agreement-linking markets with deepening of the ties', NITI Aayog Adviser (Industry-I) Ishtiyaque Ahmed said India can explore an FTA with the UK and it should try and leverage this agreement to grow and diversify its exports and attract investment. India and the UK will gain a lot from each other by exploring the possibility of signing a free-trade agreement (FTA), as the proposed pact can help in catalysing trade and economic growth in these two countries, according to experts. They also stated that right stakeholders should be present at the table from the Indian side while negotiating the free-trade agreement between the two countries. Speaking at the webinar of the Trade Promotion Council ofIndia (TPCI) on 'India- UK Free Trade Agreement-linking markets with deepening of the ties', NITI Aayog Adviser (Industry-I) Ishtiyaque Ahmed said India can explore an FTA with the UK and it should try and leverage this agreement to grow and diversify its exports and attract investment. "With respect to the UK, an FTA with India will give it access to a large and growing market and an attractive destination for its investments and supply chain diversification," he said. Ahmed also said the UK is an important export market for India, and after the signing of the agreement, trade is expected to grow between the countries. "An FTA with India will also give UK companies an opportunity to diversify their supply chains. "As we have also seen, supply chain diversification has become an important policy concern post-COVID19 pandemic and I believe that it is expected to remain one for the foreseeable future," he said. Emphasising on the importance of these agreements, he said modern-day FTAs are wide and encompass a wide range of areas, beyond just trade in goods and they also encompass trade in services, investment, intellectual property, and trade remedy measures. "I believe an FTA between India and the UK would also be wide-ranging in its structure," Ahmed noted. Sharing a similar view, Sameer Pushp, director (media and corporate communication) of TPCI, said that for the UK, a free-trade pact with India would not only provide them an enhanced access to one of the largest and fastest growing markets, but also enhance their economic and political influence in the Indo-Pacific region. Bilateral trade between India and the UK has been more than USD 10 billion per year in the past decade, and the total trade in 2020 stood at USD 12.48 billion, he said. "Automobiles, chemicals and electronics are the main product categories overlapping India's export and the UK's import basket," Pushp said. Arpita Mukherjee, professor at the Indian Council for Research on International Economic Relations (ICRIER), said negotiations are key in such agreements and right stakeholders should sit at the table for that. "We need to diversify the trade negotiations," she said adding that for the dairy sector, the government should talk to all the concerned stakeholders.

Source: Economic Times

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Government creating enabling conditions for growth of textile industry and handlooms in India through its various schemes/initiatives

 The government provides platforms to the agencies/weavers in domestic as well as overseas markets for promotion of marketing of handloom products produced across the country. Also, government creates a conducive environment and provide enabling conditions for textile industry in the country through its various schemes/initiatives. The following schemes have been implemented by government since 2014 to promote textile industry in the country and globally:

  1. Rebate of State and Central Taxes and Levies (ROSCTL): With effect from 07.03.2019, the Central Government has launched a new scheme viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/Madeups. The ROSCTL Scheme provides rebate of State and Central Taxes and Levies in addition to the Duty Drawback Scheme, through the Scheme on Export of Garments/Made-ups at notified rates and value caps and will remain in force upto 31.01.2020.

The Government decided to continue the RoSCTL (Rebate of State and Central Taxes and Levies) scheme until such time the RoSCTL scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. For this purpose, the Government approved adhoc allocation of funds of Rs.7398 crore for FY 2020-21 for issuance of duty credit scrips under RoSCTL Scheme. Taking a major step to boost exports, Government decided to extend the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from 1st January, 2021. Government had notified a special one-time additional ad-hoc incentive of upto 1% of FoB value to be provided for exports of apparel and made-ups to offset the difference between RoSCTL and RoSL + MEIS@4%, from 7.3.2019 to 31.12.2019. Further, in order to boost exports in MMF sector, Government has removed anti-dumping duty on PTA, a key raw material for the manufacture of MMF fibre and yarn. Government had removed antidumping duty on acrylic fibre, raw material for yarn and knitwear industry. Assistance is also provided to exporters under Market Access Initiative (MAI) Scheme. Government has enhanced interest equalization rate for pre and post shipment credit for exports done by MSMEs including textiles sector from 3% to 5% w.e.f. 02.11.2018. Benefits of Interest Equalization Scheme has been extended to merchant exporters from 02.01.2019 which was earlier limited to only manufacturer exporters. Merchandise Export from India Scheme (MEIS) was in operation from 1.4.2015 till 31.12.2020 for exports made (including textiles products) with an objective to offset infrastructural inefficiencies and associated costs involved in exporting goods/ products which were produced/ manufactured in India.

  1. Special Package for Textile and Apparel sector: Rs 6000 crores package was launched in June 2016 to boost employment and export potential in the apparel and made up segments. This package consists of Remission of State Levies for garmenting and made-ups; additional production and employment linked subsidy of 10% under ATUFS for garmenting; assistance for the entire 12% employers’ contribution towards EPF; fixed term employment in garmenting, increasing overtime caps; and income tax concessions under section 80JJAA for the garmenting sector.
  2. Amended Technology Up-gradation Fund Scheme (ATUFS): The amended Scheme was launched in January 2016 with an outlay of Rs 17822 Crores for technology upgradation of textiles industry with one time capital subsidy for eligible machinery. The scheme has been designed to mobilize new investment of about Rs 95 000 cr and employment for 35 lakh persons by the year 2022.
  3. SAMARTH- With a view to address the skilled manpower requirement across textile sector, Scheme for Capacity Building in Textile Sector (SCBTS) is implemented. The scheme has been extended till March, 2024.
  4. PowerTex India: A comprehensive scheme for development of Powerloom sector has been launched w.e.f 01.04.2017 to 31.03.2020 and extended upto March 2021 with components like Insitu-upgradation of plain Powerlooms, Group Work Shed Scheme, Yarn Bank Scheme, Common Facility Centre (CFC), Solar Energy Scheme, Pradhan Mantri Credit Scheme, etc.
  5.  Handloom sector: Government is implementing following schemes since 2014-15 onwards under which financial assistance is provided for raw materials, purchase of looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, lighting units, marketing of handloom products in domestic as well as overseas markets and loan at concessional rates: -

National Handloom Development Programme (NHDP)

  • Comprehensive Handloom Cluster Development Scheme (CHCDS)
  • Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)
  • Yarn Supply Scheme (YSS)
  1. The India Handloom Brand (IHB) Scheme of Govt. of India was inaugurated and launched by the Hon’ble Prime Minister on 7th August, 2015 at Chennai on the occasion of the First National Handloom Day to promote the inherent strength of the Indian handloom products in the country. The IHB Scheme is aimed to promote the brand of handlooms and develop a niche market for the handloom textiles with distinct identity.
  2. Viii Silk Samagra: Government of India has been implementing a Central Sector Scheme “Silk Samagra” for development of sericulture in the country with components such as Research & Development, Training, Transfer of Technology and I.T Initiatives, support to seed organizations, coordination and market development and, quality certification Systems (QCS)/ Export Brand Promotion and Technology Upgradation. R&D efforts have also been initiated to evolve new products by blending silk with other fibres such as wool, coir, cotton etc., which have demand in international markets.
  3. Scheme for Incubation in Apparel Manufacturing (SIAM): The Scheme for Incubation in Apparel Manufacturing (SIAM) was launched on pilot basis in January 2014 with initial outlay of Rs.38.80 crore for setting up three Incubation Centres @ Rs.12.93 crore /Incubation Centre. The objective of the Scheme is to promote new entrepreneurs in apparel manufacturing by providing them an integrated workspace with complete ecosystem and plug and play facility which help them in reducing time, cost and efforts involved in setting up a new incubation centre. Two projects for setting Incubation Centres i.e. SPINFED in Odisha & MPIIDC in Madhya Pradesh are under implementation.
  4. Scheme for Textile Industry Workers’ Accommodation (STIWA): The Scheme for Textile Worker’s Accommodation was launched in 2014 with an outlay of Rs.45 crore for implementation during the 12th Five Year Plan. The objective of the Scheme is to provide safe, adequate and conveniently located accommodation for textile and apparel industry workers in the proximity of areas of high concentration of textile and apparel industries. Two such projects have been sanctioned in October, 2014 viz. Gujarat Eco-Textiles Park Pvt. Limited in Gujarat and Palladam Hi-Tech Weaving Park Pvt. Limited in Tamilnadu. Both projects have been completed as per scheme guidelines.
  5. Jute (ICARE): A project Jute ICARE (Improved Cultivation and Advanced Retting Exercise) was introduced in 2015 for improving productivity and quality of raw jute through carefully designed interventions. The project has benefitted more than 1.9 lakhs farmers in various states in the country.
  6. Scheme for Research and Development for the Textile Industry including Jute was approved in the 12th Five Year Plan from 2014-15 to 2018-19 with an outlay of Rs. 149 crore. The scheme has been designed with three major components as under:

• Component-I: Research and Development projects to be undertaken by reputed research agencies including Textile Research Associations (TRAs), research laboratories, universities, industry associations etc. engaged in research in the textiles and allied sector (Total Outlay: Rs.50 crore). The Scheme completed its tenure on 31st March, 2019, and has been extended up to 31st March, 2020.

• Component-II: Promotion of R&D in jute sector; transfer of technologies and dissemination activities in jute sector (Total Outlay: Rs.80 crore).

• Component-III: Benchmarking studies, knowledge dissemination and promoting green initiatives through R&D (Total Outlay: Rs.15 Crore).

  1. Scheme for Promoting Usage of Geotechnical Textiles in North Eastern Region: The Scheme was launched on 24.03.2015 for a period of five years (2014- 15 to 2018-19) with an outlay of Rs.427 crore. The objective of this Scheme is to promote and utilize Geotextiles in development of the infrastructure in the NE states by providing technological and financial support for meeting additional costs, if any, due to the usage of Geotextiles in existing/ new projects in road, hill/ slope protection and water reservoirs.
  2. National Technical Textile Mission: The government has approved the proposal for creation of National Technical Textiles Mission for a period of 4 years (2020-21 to 2023-24) with an outlay of Rs.1480 crores. The focus of the Mission is for developing on usage of technical textiles in various flagship missions, programmes of the country including strategic sectors. The use of technical textiles in agriculture, aquaculture, dairy, poultry, etc. Jal Jivan Mission; Swachch Bharat Mission; Ayushman Bharat will bring an overall improvement in cost economy, water and soil conservation, better agricultural productivity and higher income to farmers per acre of land holding in addition to promotion of manufacturing and exports activities in India. The use of geo-textiles in highways, railways and ports will result in robust infrastructure, reduced maintenance cost and higher life cycle of the infrastructure assets.
  3. Integrated Wool Development Programme” (IWDP) is being implemented since 2014 for development of woollen textile industry in major wool potential areas of the country. Under this Scheme, provision has been made to establish Common Facility Centres (CFCs) at major wool potential areas as the Woollen Industry require to modernize pre-loom and post-loom processing facilities for ensuring quality finished product. The scheme having provision for creating different kind of wool and woollen processing activities like- wool scouring, carding, dyeing, knitting, weaving. Establishing such CFCs helps in increasing wool processing capacity.

The details of achievements of Public Sector Undertakings (PSUs) are as follows:

  1. Cotton Corporation of India

 • CCI has developed a mobile app, “Cott-Ally” wherein latest news regarding weather condition, Crop situation, best farm practices etc are available in regional languages which gives real time information. In addition, it is an authentic source of information regarding all government schemes related to cotton and information on best farm practices for sustainable production of good quality contaminant-free cotton to maximize the farm income. Live chat feature of this mobile app will benefit the user in such a way that whenever anyone selects the State, live chat will be routed to the CCI Branch office of that particular state, so that live chat can be made in the regional language of choice.

• CCI is promoting mechanization of cotton harvesting under Corporate Social Responsibility by equipping the marginal and small cotton farmers with hand held kapasplucker machines in a phased manner which reduced dependence on labour,reduce cost of production thereby higher financial returns. Use of Kapasplucker machine avoid contamination at farm level and improve the quality of cotton.

• For scientific assessment of quality equipped procurement centres with portable moisture meters having data transfer facility, micronaire testers and hand-held ginning machines. Further prescribed the quality norms upon ginning and pressing factories to give better quality of cotton as per parameters fixed for lint realization%, shortages and trash%. This step will improve brand image of Indian cotton

• Tender wizard platform approved by Ministry of Electronics and Information technology is used for conducting e-auction to sell its stock in a more transparent manner. It not only keep confidentiality of e-auction process but bidding is made on real-time basis which help in making price discovery based on the prevailing market.

• CCI is giving discount of Rs.300/- per candy in its regular sale price to MSME mills, Khadi and Village industry, Cooperative sector mills to help them in enhancing their competitiveness and efficiency.

• To increase the production of Extra Long Staple (ELS) cotton, distributed two lakh kgs of ELS cotton seeds in the state of Tamilnadu to cotton farmers through Tamil Nadu Government.

ii. Central Cottage Industries Corporation of India Limited (CCIC) CCIC has supported rich heritage of art & craft in India through its retail emporia providing market platform to artisans and weavers(including national and state awardees) •

iii. National Textile Corporation Limited (NTC) NTC is engaged in production of yarn and fabrics through its 23 mills in operation, located all over India producing around 550 lakhs KG of yarn and 200 lakhs meter of fabric per annum.

 iv. National Handloom Development Corporation Ltd (NHDC): In order to make available all types of yarn, basic raw material used in the Handloom sector to the eligible handloom weavers/agencies at Mill Gate Price, Government of India is implementing Yarn Supply scheme throughout the country. Further, in order to facilitate handloom sector/weavers to compete with Mill Sector, 10% price subsidy is also provided under Yarn Supply Scheme on cotton, domestic Silk, Woollen and linen hank yarn with quantity restrictions.

v. Jute Corporation of India (JCI):

• Ensuring the market price levels of raw jute above Minimum Support Price through active presence of JCI procurement centres and judicious intervention as and when the prices fall below MSP while ensuring all payments direct to the accounts of farmers within three working days.

• Distribution of certified jute seeds were also carried out amidst total lockdown following all the Covid-19 protocols thereby helping to achieve 10-15% higher sowing over last year.

• New marketing channels for Jute Diversified Products have been launched including Franchisee and E-Commerce modes. Corporation has taken up following innovative initiatives towards meaningful utilisation of CSR funds in the F.Y 2020-21:

• Supporting mother and child health care facility to five district hospitals in five jute growing aspirational districts (Darang, Goalpara Districts in Assam,NadiaDistrcit in West Bengal, Katihar and Purnia Districts in Bihar) as per the advice of the Department of Public Enterprises.

• Two women NGOs supported for imparting training to rural women artisans to manufacture quality Jute Diversified Products (JDP) so that the trained women artisans may start up own JDP manufacturing units.

• JCI has signed MOU with NSC on 19/08/2020 for sourcing of 1000 MT Certified Jute seed (Variety JRO-204) and has planned to commercially distribute the same to farmers.

This information was given in a written reply by the Minister of State for Textiles Smt. Darshana Jardosh in Lok Sabha today.

Source: PIB

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Steps taken by the government to increase skill development trainers in various sectors 

Under short-term skilling eco-system, trainers are being trained through Training of Trainers (ToT) programme, which is being conducted by Sector Skill Councils (SSCs) and  facilitated through National Skill Development Corporation (NSDC). Under Pradhan Mantri Kaushal Vikas Yojana (PMKVY), all the trainers for short-term training have to be ToT certified. As on 19.07.2021, 58,112 trainers under 37 sectors have been ToT certified across the country. NSDC under the aegis of Ministry is implementing training program for the professional development of “Skill Trainers” in the short-term skill eco-system through Sector Skill Councils (SSCs). In order to further enhance the ToT programme, Ministry has provisioned for the direct funding under third phase of PMKVY to create a pool of certified trainers. Also, Takshashila, a dedicated technology platform has been developed to support the trainer development framework such as Trainer registration, demand aggregation, batchlife cycle and certification. Further, a dedicated capacity of ‘Trainer-Assessor Academies’ is being established which are responsible for the implementation of training of trainers program along with Continuous Professional Development programs. This information was given by the Union Minister of Skill Development and Entrepreneurship, Shri Dharmendra Pradhan in a written reply in the Rajya Sabha today.

Source: PIB

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Initiative to attract maximum investments! Yogi Adityanath government to develop industrial parks on PPP model in UP

The industrial parks, to be built on public-private partnership, model are expected to boost exports from the state as well. In a novel initiative to attract maximum investments to the state, the Yogi Adityanath government in Uttar Pradesh is gearing up to develop private industrial parks in many districts. The industrial parks, to be built on PPP (public-private partnership), model are expected to boost exports from the state as well. The districts where the private industrial parks are to be developed include Lucknow, Unnao, Amethi, Sultanpur, Pratapgarh, Aurraiya, Hamirpur, Jalaun, Noida, Ghaziabad, Meerut, Azamgarh, Ambedkar Nagar, Gorakhpur and Prayagraj. According to a state government spokesman, the first industrial park will come up in Unnao near the Agra-Lucknow Expressway. The land has also been identified to build this private industrial park in Barauli Kalan village of the district. Industries manufacturing textile and ready-made garments, food processing, perfumes, brass products, toys and electronic equipment can be set up in these private industrial parks. Last year, Chief Minister Yogi Adityanath had announced that a number of facilities for entrepreneurs intending to build industrial parks and warehouses as well as providing logistics services last year. This includes significant reduction in the land required for setting up a private sector industrial park through an amendment in the Uttar Pradesh Industrial Investment and Employment Promotion Policy-2017. Entrepreneurs can now set up private industrial parks in at least 20 acres of land in Bundelkhand and Purvanchal regions of the state whereas 30 acres or more would be required for setting up a private industrial park in western Uttar Pradesh, including Noida and Ghaziabad, and central Uttar Pradesh. The Industrial Development Department has identified about 9,000 hectares of land in 15 cities along the expressways on the instructions of the Chief Minister. The reason behind identifying lands for industrial parks near expressways was that it would facilitate faster movement of goods and transportation would be cheaper. Soon private investors will be allotted land on liberal terms for industrial projects to be taken up in their various areas. The move is likely to accelerate industrial development in the state while creating direct and indirect employment opportunities for the youth. In order to bring big investors to the state, the state government has also identified 22,000 acres of land in Firozabad, Unnao, Agra, Chitrakoot, Mainpuri and Barabanki. These six districts, situated around Purvanchal, Agra-Lucknow and Bundelkhand Expressways, are believed to have high potential for investment.

Source: Zeebiz

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India, US extend provisions of pact on capacity building in partner countries

It said the second amendment expands the scope of capacity building activities undertaken jointly by India and the US and also provides for a consultative mechanism for biannual monitoring and review of activities undertaken under the SGP. India and the US on Friday extended the provisions of an existing agreement that provides for jointly offering capacity-building assistance to their partner countries in multiple sectors such as connectivity, trade and investments, healthcare and agriculture. Both sides signed the second amendment to the Statement of Guiding Principles (SGP) on Triangular Cooperation for Global Development, the Ministry of External Affairs said. The SGP agreement was signed in November 2014 and the fresh amendment extended the pact's validity up to 2026. Under the agreement, India and US will continue to offer capacity building assistance to partner countries in multiple sectors, focusing primarily on agriculture, regional connectivity, trade and investments, nutrition, health, clean and renewable energy, women empowerment, disaster preparedness, water, sanitation, education and institution building," the M It said the second amendment expands the scope of capacity building activities undertaken jointly by India and the US and also provides for a consultative mechanism for biannual monitoring and review of activities undertaken under the SGP. "The agreement helps fulfil the joint commitment of both nations to work together and leverage their combined capacities to provide demand-driven development partnership," the MEA said in a statement. "This triangular cooperation with the US will complement India's other ongoing and future development partnerships, capacity building and technical assistance with countries globally," it said. The signing of the agreement came two days after US Secretary of State Antony Blinken visited India during which both sides agreed to further expand cooperation in several areas. The amendment was signed by Abhilasha Joshi, Joint Secretary, Development Partnership Administration-II division in the MEA, and Karen Klimowsky, Acting Mission Director for the United States Agency for International Development (USAID) in India.

Source: Economic Times

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India & Vietnam are emerging as post pandemic Economic Powers in region

 India’s Aatma Nirbhar Mission can be integrated with the Global Economy mentioned Pranay Verma, Ambassador, Embassy of India, Vietnam in a webinar organized by PHD Chamber of Commerce and Industry (PHDCCI) on Global Trade and Investment Opportunities for Indian Industry in Vietnam. India and Vietnam are emerging as Economic Powers in the region that will make a difference in the post-pandemic times. Vietnam and India have emerged as global trade partners due to their policy initiatives and increase in their trade and investments. India’s Aatma Nirbhar Mission can be integrated with the Global Economy mentioned Pranay Verma, Ambassador, Embassy of India, Vietnam in a webinar organized by PHD Chamber of Commerce and Industry (PHDCCI) on Global Trade and Investment Opportunities for Indian Industry in Vietnam. While lauding PHDCCI’s diligent efforts in fostering business and trade relations of India with other counties of the world, Verma discussed the challenges faced in Vietnam related to disruption in production, supply chain, logistics, and many more yet at the same time arising of new op Verma emphasized that there is a need to take advantage of each other’s economic strength for increasing business relations between two nations at the same time leverage each other’s global value chains to utilize each other’s trade network. There is a need to look at the domestic market, especially in India that can offer growth opportunities to Vietnam with focus on e-documentation, e-payments which will help to increase business growth and foster B2B engagement, connecting MSMEs. There is a need for structural improvement where the government and business partners need to work in sync and also improve shipping connectivity between the two nations. He further added that Mutual recognition of standards and certifications will have a positive impact on the trade and electrical machinery vertical. Talking about Vietnam and India, economic engagement, and trade investment, he mentioned that there has been an increase in numbers but there is a need to expand our trade basket in the areas of pharmaceutical, auto components, renewable energy, IT, and digital economy, healthcare, startups, fintech, e-commerce, petroleum products, agriculture, among others and also increase in investments done in the field of IT, infrastructure, manufacturing, and others. India and Vietnam despite the pandemic and, the economic and trade exchange will pick up in the times to come. There is a restructuring of the global supply chain and both nations have the capabilities to take advantage of the opportunity. With the strategic location of both nations and change in reforms, there will be an increase in trade exchange and will be a driving engine for the global economy in near future. We need to find other areas of trade exchange which will help to increase trade relations at the same time meet the population demands of the future. Le Thi Mai Anh, Head of Southeast Asia, South Asia and Regional Cooperation Division, Asia-Africa Market Department, Ministry of Industry and Trade of Vietnam gave an overview on Vietnam economy and trade relations and opportunities. She highlighted Vietnam and India Comprehensive Strategic Partnership is one of the five pillars that underlines the strong relations. India emerged as the 10 largest trading partner of Vietnam. She mentioned that both the nations should continue to revitalise its business and investment climate and build an advanced and integrated framework for businesses to create more opportunities to further deepen global economy and provides a way for business production and trade facilitation. Do Thi Quynh Nga, Director, Investment Promotion Center – North Vietnam Foreign Investment Agency, Ministry of Planning and Investments of Vietnam in her presentation highlighted on Vietnam investment environment and investment Opportunities in sectors such as processing, healthcare and pharmacy, ICT & software, infrastructure & PPP , M&A startup, banking and insurance, real estate, renewable energy and biotechnology with stable political open society, high and stable economic growth rate, competitive production growth, human resource, institutional mechanism and strategic location.

Source: Economic Times

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Welspun India is an FMCG brand of Textiles: Dipali Goenka, CEO & Joint MD

Dipali Goenka, CEO & Joint MD, Welspun India Limited, talks about the performance in Q1FY22, debt, CapEx, government initiatives for the textile industry, RoSCTL, distribution network, tie-up and collaboration with Target Corporation and inorganic growth opportunity among others during an exclusive interview with Swati Khandelwal, Zee Business. Welspun India is an FMCG brand of Textiles: Dipali Goenka, CEO & Joint MDDipali Goenka, CEO & Joint MD, Welspun India Limited, talks about the performance in Q1FY22, debt, CapEx, government initiatives for the textile industry, RoSCTL, distribution network, tie-up and collaboration with Target Corporation and inorganic growth opportunity among others during an exclusive interview with Swati Khandelwal, Zee Business. Edited Excerpts: Q: Congratulations on an outstanding set of numbers. Back-to-back the company has posted a strong set of numbers. Tell us how have you managed it so well and is it sustainable growth or can be better from here? A: US economy looks strong and retail sales stood at 1.5 trillion. E-commerce has also displayed a good performance and has had a contribution of around 15-16% in American sales. As the global economy is opening, so things are improving in UK, Europe, and others as well. So, the numbers are looking strong, and we have provided a projection of Rs 12,500 crore by 2025, 14% growth and maintaining the same, I would like to say that in this quarter, textile will have 10% contribution in growth, 50% of flooring – our upcoming business, and 25% of advanced textile. They will have a very big contribution to our businesses going forward because still our emerging businesses along with the core businesses, flooring, advanced textiles, our brands, our licensed brands, e-commerce have contributed around 21% to our top line. Q: You have successfully managed to reduce the debt by Rs 83 crores which is a significant number. How are you managing it and how do you plan to reduce it going ahead? A: First I would like to talk about the debt, we have invested Rs 172 crore in our projects in the first quarter. Overall, we have a plan of Rs 600 crore across advanced textiles, floorings, and the Brownfield Project, which is coming in our textile section. It is likely to be completed by quarter three or four. Our debt was quite low in this quarter, in fact, it is around Rs 2,249 crore, which is Rs 404 crore lower compared to June 2020, and we will have an eye on it. But as these projects will kick in the whole production and all will also kick in. So, we are very confident to turn around and I think it is a definite positive that the kind of capacity expansion that we are going towards. I will say that a 7% expansion is occurring in our towel, which will take our capacity to 85,000 metric tonnes per annum, our sheets will increase by 20% by the third quarter and around that time, rugs will increase by 80%. So, our capacity is ready for a kind of buoyancy that we were looking at because India is going to be a prime spot, the whole Government of India will support this whole industry. I think India has a lot to gain and, we are ready and prepared for it. Q: How much CapEx you are lining in the short-term and in the long-term do you have any further plans to grow aggressively? A: First of all, as I informed you about the Rs 600 crore of expansion and going forward, we will see that what is happening. In fact, at Welspun India, we generate free cash flows quarter-on-quarter and with a healthy bottom line that we have, we look at funding our own projects through internal accruals. So, if something is there in the future then let’s see what happens there but there are a lot of chances are there that we will have to do more integration because you have seen the scenario of cotton in relation to the ongoing Xinjiang’s cotton scenario in China and globally, there is a lot of sensitivity in a completed integrated supply-chain from cotton source from Xinjiang to end-to-end, so we are seeing an opportunity on the front. But, definitely, there is a lot of exploration that is happening. Q: The government has a focus on the sector and have good schemes to create India as a large textile hub. So, what contribution you will have on the front from what it is today to what it will be few years down the line? Also, the government recently extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme on exports of garments till March 31, 2024. How do you see this move and how is it going to benefit you? Beyond, this there are talks related to mega-cluster parks and the government is also working on textile. So, how do you see this development and what impact it will have on your company? A: First of all, RoSCTL has had a big impetus and the biggest thing is that it has been extended till 2024 and that is going to play to a level playing field and gives a lot of encouragement to the sector, which is the maximum employer in this country after agriculture. So, it has been a big issue and if we have a look at it then the scheme will have an impact of 8.2% but in our category, where towels & sheets, has a 70% contribution, will overall have a 4% impact. So that is where we are looking from a perspective of RoSCTL but it is a mega boost to the whole Indian industry and putting it on the map of the world, very very integral to India’s growth and employment as well. You also talked about the parks, and I will talk from the perspective of Welspun and will like to say that it is going to be a very big opportunity that the government is doing in terms of the park, it will be great for the MSMEs because MSMEs are the bedrock for the textile industry. At Welspun India, we have our own industrial park, which is located 1.50 to 2 kilometres away from our factory. And that helps us to have just in time inventory for our trims, packaging and other things and also reduces the Carbon-footprint. Going forward there will be another important issue and that will be sustainability, ESG and that is, I think, is going to be the fundamental of doing the textile business and businesses so far going forward. Q: You have a strong global distribution network, and it is well known. How will you manage it more efficiently? Also, you have also worked on tie-ups including Target in the US. So, will we get a chance to see any more actions in this direction in terms of your global distribution network? A: If we will talk about the domestic distribution globally then our warehouses have a complete integration in the US. Currently, we have three warehouses from where works like pick & pack, B2C and the pallet-in pallet out is performed. We have warehouses in the UK, the Middle East, Germany, and India. Fundamentally, we do predictive analysis for the customers, and we work as partners to them. So, as a result, we are just in time for our customers and for us, it is a service factor for our customers. So that is where we work as a partner, and we have a 360-degrees approach, and we are the FMCGs of textile and we work from farm to shelf. As far as partnerships in the future are concerned, we have two licensed brands Martha Stewart, which had tremendous growth of over 80% YoY. Recently, we have tied up with Scott Brother, Scott Living. I would like to give an idea of growth like in 72-hours; we could sell around 95% of our goods on the QVC channel. Christy, which is our brand of Jewel and Crown. The Wimbledon season received around half a million eyeballs this season. So, SPACES and Welspun, we can’t forget it. I would just like to say that we have been a home solution provider and we are just not a textile manufacturer, but we are the FMCG of the textile and we have a portfolio of brand licenses and of course, e-commerce has become an integral part of Welspun. Q: A lot of inorganic growth opportunities is available and the pace at which you are increasing and the growth targets, I think, you have will need an inorganic growth opportunity will be required. So, are you looking for something, if yes, what is the segment you are looking forward and what will be the ticket size for it? A: I will not say that it is far fetched and there are great opportunities for Welspun India right now because I think it will be important to debottleneck things where the bottleneck is present. SO, we will look forward to such opportunities maybe it is related to the backend integration or for enhancement of our brand. So, exploration is going on and let’s see what folds out.

Source: Zeebiz

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Advancing industry convergence through technology and innovation

The 2021 School of Engineering Accenture Fellows are bolstering research and igniting ideas to help transform global business. Launched in October 2020, the MIT and Accenture Convergence Initiative for Industry and Technology is intended to demonstrate how the convergence of industries and technologies is powering the next wave of change and innovation. The five-year initiative is designed to advance three main pillars: research, education, and fellowships. As part of the third pillar, Accenture has awarded five fellowships to MIT graduate students working on research in industry and technology convergence who are underrepresented, including by race, ethnicity and gender. The recipients of the inaugural Accenture Fellows program are working across disciplines including electronics, textiles, machine learning, economics, and supply chain. Their research has the potential to advance innovation and technology to influence industry convergence and to broaden the convergence process to virtually all industries — through creative problem-solving, the accelerated adoption of new technologies, unique collaborations, and thinking imaginatively and boldly. “Accenture has long focused on how creativity and ingenuity can help solve some of the world’s most complex problems. When we wanted to explore the convergence of industry R and technology, we turned to MIT to extend our longstanding partnership with education, research, and fellowships that delved deeper into this topic,” says Sanjeev Vohra, global lead of applied intelligence at Accenture. “The Accenture Fellows awards underscore our strong commitments to education, innovation, research and discovery, and creating opportunities that will help accelerate the achievements of these future champions of change.” Research being conducted by the fellows covers an array of critical work, including: developing robot-aided therapy to improve balance in impaired subjects; leveraging the increasing availability of data in the gig economy; using machine learning to process locally generated waste for use as alternative energy in low-income municipalities; examining operational challenges that may arise from barriers to extending credit and sharing information among supply chain partners; and designing and applying electronic textile technology to low-Earth orbit, prompting an opportunity for convergence among the electronics, textile, and space technology industries. “These fellows are prime examples of the incredible cross-disciplinary work happening at the nexus of industry and technology,” says Anantha Chandrakasan, dean of the MIT School of Engineering and the Vannevar Bush Professor of Electrical Engineering and Computer Science. “We are tremendously grateful for Accenture’s commitment to our students, and for their goal of supporting and advancing student innovation and discovery through these fellowships.” Student nominations from each unit within the School of Engineering, as well as from the four other MIT schools and the MIT Schwartzman College of Computing, were invited as part of the application process. Five exceptional students were selected as the inaugural fellows of the initiative: Jacqueline Baidoo is a PhD student in the Department of Materials Science and Engineering, exploring policy related to materials use. Specifically, her research is focused on waste-to-energy (WTE) strategies that could be adopted at the municipal level to treat and process locally generated waste for use as alternative energy. Her goal is to use machine learning to reduce the barrier to entry of WTE practices in low-income municipalities through the development of a tool that informs municipal decisions around waste management and the construction of WTE facilities. Baidoo earned a BS in chemistry and BA in physics from Xavier University of Louisiana and a BS in chemical and biomolecular engineering from Georgia Tech. Juliana Cherston is PhD student in the Media Lab. Her work in the Responsive Environments Group is focused on bringing electronic textile technology to low-Earth orbit, prompting an opportunity for convergence among the electronics, textile, and space technology industries. Specifically, she is augmenting large area space fabrics with active sensory functionality, weaving vibration-sensitive piezoelectric fibers and chargesensitive conductive yarns into these specialized materials. Cherston earned a BA in physics and computer science from Harvard University. Olumurejiwa Fatunde is a PhD student studying in the Center for Transportation and Logistics. Her research examines operational challenges that may arise from barriers to extending credit and sharing information among supply chain partners in informal settings. With the proliferation of novel payment platforms, cryptocurrency usage, and natural language processing, Fatunde postulates that there is an opportunity to drive convergence across financial services, telecommunications, and other customer-facing industries in emerging markets. Specifically, she is investigating how technologies could trickle down to the smallest, least-formal organizations, helping them to create value for consumers and to be a part of the global economy. Fatunde earned a BA in biomedical engineering from Harvard University and an MS in international health policy from the London School of Economics in the U.K. André Medeiros Sztutman is a PhD student in the Department of Economics. Leveraging the increasing availability of data in the gig economy, his work focuses on the development of tools for tackling adverse selection in insurance markets. By creating tools that make better use of information — especially in situations where it is particularly needed — he is contributing to the convergence of different industries: gig platforms, reporting agencies, and the insurance business. Medeiros Sztutman earned a BS in economics from the Universidade de Sao Paulo, Brazil and an MS in economics from Pontificia Universidade Catolica do Rio de Janeiro in Brazil. Kaymie Shiozawa '19 is a master’s student in the Department of Mechanical Engineering, exploring how robot-aided therapy could potentially address the challenge of improving balance in impaired subjects. Drawing on her experience designing human subject experiments, applying machine learning and mathematical simulations, and designing complex mechanisms for robotics and medical devices, Shiozawa aims to design a variable impedance cane and a novel protocol known as AdaptiveCane, which encourages unaided balance by progressively reducing the level of assistance provided as a user’s performance improves. Shiozawa earned an BS in mechanical engineering from MIT.

Source: MIT News

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European economy grows 2% in second quarter, ending double-dip recession

But the economy in the 19 countries that use the euro currency still lagged pre-pandemic levels Europe emerged from a double-dip recession in the second quarter with stronger than expected growth of 2% over the quarter before, according to official figures released Friday, as hard-hit southern European economies Spain, Italy and Portugal delivered surprisingly strong results. But the economy in the 19 countries that use the euro currency still lagged pre-pandemic levels and trailed the faster recoveries in the US and China, with the delta variant continuing to cast a shadow of uncertainty over the upturn. The growth figure for the April-June quarter announced Thursday by the European Union's statistics agency Eurostat compared to a drop of 0.3% in the first quarter as the 19 countries that use the euro endured a double-dip recession after a rebound in mid2020. The second-quarter growth figure was stronger than the 1.5% foreseen by market analysts. Italy was a major positive surprise, growing 2.7% and Portugal boomed with 4.9%, while growth returned in major economies France, which grew 0.9% compared to the previous quarter, and Germany, which saw growth of 1.5% after a sharp drop of 2.1% in the first quarter. German auto companies in particular have shown strong profits despite a shortage of semiconductor components as global auto markets recover, particularly for the higher-priced vehicles sold by Mercedes-Benz and by Volkswagen's Audi and Porsche luxury brands. Yet the recovery lags the one in the US, where the economy surpassed its pre-pandemic level during the quarter. Friday's figures leave the eurozone 3% smaller than before the virus outbreak, according to Capital Economics. China was the only major economy to continue growing during pandemic year 2020. The stronger performance in southern Europe may be the result of stronger spending by households, said Andrew Kenningham, chief Europe economist at Capital Economics. Spain, with consumer spending up 6.6%, both illustrated the rebound and underlined how far it has to go, since gross domestic product remains 6.8% below where it was before the pandemic.   Lagging vaccinations held back the European economy in the first part of the year but have made steady progress since. Yet the spread of the more-contagious delta variant has led to predictions that it may slow, though not derail, the economic upturn. The delta variant remains a worry for economies that are heavily dependent on Mediterranean tourism such as Spain, which nonetheless enjoyed robust expansion of 2.8% during the quarter. Given its reliance on tourism, the Spanish economy looks especially vulnerable to the delta variant that is forcing several regions in the country to impose new restrictions, while foreign governments are discouraging trips to the Iberian Peninsula, said Edoardo Campanella, economist at UniCredit Bank in Milan. Officials figures Friday also showed eurozone unemployment at 7.7% in June, down from 8.0% in May. Inflation rose to 2.2% in July from 1.9% in June. The eurozone economy has been sustained by government spending on pandemic relief including subsidies for companies that keep furloughed workers on the payroll. The European Central Bank is adding monetary support by keeping interest rate benchmarks at record lows and by purchasing 1.85 trillion euros in government and corporate bonds through at least March 2022. That step drives down longer-term borrowing rates and helps keep credit flowing to businesses and governments.

Source: Business Standard

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66 exporters to get National Export Trophy

The government is going to recognize 66 exporters with the "National Export Trophy" for the financial year 2017-18 for earning the highest amount of foreign currency through export in their respective sectors. Of the firms, Zaber & Zubair Fabrics Ltd has been named as the top exporter and is going to get 'Bangabandhu Sheikh Mujib Export Trophy' for bringing the highest receipts through shipment of home and specialized textiles, a sector that emerged as a top performer during the onslaught of Covid-19 pandemic. This is the first time that government declares the "Bangabandhu Sheikh Mujib Export Trophy" to encourage exporters to strive for exporting more goods and services and bring increased receipts, according to a notification by the Ministry of Commerce on July 29, 2021. The rest of the companies are set to be awarded National Export Trophy for the highest amount of export receipts. The recognition is given in three categories: gold, silver and bronze. Officials said the selection of the best exporters for the FY18 was completed last year. But it was not announced due to the Covid-19 pandemic. Now the trophy will be officially handed over on any convenient date. According to the notification, Rifat Garments Ltd will get the export trophy in the gold medal for earning the highest amount of exports in readymade garments in the woven sector Apart from this, AKM Knit Wear Ltd is going to get recognition in the silver category and Tarasima Apparels Ltd to get bronze. Square Fashions Ltd is going to receive the gold medal in the knitwear sector. Four H Fashions Ltd is getting silver and GMS Composite Knitting Ind Ltd will get the trophy in the bronze category. In yarn making, Badsha Textile Ltd, Kamal Yarn Ltd and Nice Cotton Ltd have been named for gold, silver and bronze category export trophy respectively, according to the notification. Envoy Textiles Ltd is going to be awarded for the highest export earnings from the textile fabrics sector. Apart from this, Noman Weaving Mills Ltd and Four H Dyeing and Printing Ltd are also going to get recognition for becoming second and third in export earnings in the sector.   In the home and specialised textile sector, Zaber & Zubair Fabrics Ltd emerged as the top exporter followed by ACS Textiles and Towels Bangladesh Ltd. In terry towel, Noman Terry Towel Mills Ltd has been named as the top exporter. BD Seafood Limited, MU Sea Food Ltd and Jalalabad Frozen Foods Ltd have been named as the top three exporters in the frozen foods. International Jute Traders is also going to be recognized as the only top raw jute exporter for FY 18. Akij Jute Mills Ltd tops the highest exporter list in the jute products category while The Golden Fiber Trade Center Ltd became the second top exporter. Apex Tannery Ltd has been selected for the export trophy in the gold category among the crust or finished leather exporters. In the leather goods sector, Picard Bangladesh Ltd was the highest exporter in FY18 followed by ABC Footwear Industries Ltd and BBJ Leather Goods Ltd. Bay Footwear Ltd is going to get recognition as the highest export earner in footwear. FB Footwear Ltd was the second top exporter followed by Alliance Leather Goods & Footwear Ltd in FY18. In the agricultural products (excluding tobacco), M/s. Monsur General Trading Co was the top exporter. Heritage Enterprise and Abdullah Trading Co were second and third highest exporters, according to the notification. Three entities of Pran-RFL Group- Pran Dairy Ltd are set to get recognition as the top three exporters in the agro-processing sector (except tobacco). Pran Agro Ltd and Habiganj Agro Ltd are two other firms. In the handicraft sector, Karupanya Rangpur Ltd was the top exporter in FY18. Classical Handmade Products BD was second top exporters and Bd Creation was the third-highest exporters. Bengal Plastics Ltd Unit-3 was the highest exporter in the plastic products sector, Allplast Bangladesh Lt is going to get the trophy in silver and Tanveer Polymer Industries Ltd in the bronze category. Shinepukur Ceramics Ltd was the highest exporter among ceramic exporters in FY18. Artisan Ceramics Ltd followed. In the light engineering sector, Uniglory Cycle Components Ltd is going to be recognised top exporter while Rangpur Metal Industries Ltd Unit-2 was the second top exporter in the sector. In electric and electronics products making, Energypac Engineering Ltd will R get the highest exporter trophy in gold and BRB Cable Industries Ltd was the second top exporter. BSRM Steels Ltd was the top exporter in other industrial products categories while Marine Safety System Ltd was the second-highest exporter. S Asia Metal Marine Service was the third-highest exporter. Among drug exporters, Square Pharmaceuticals Ltd topped the list of exporters in FY18. Beximco Pharmaceuticals Ltd was the second top exporter, according to the notification. Among 100 per cent Bangladesh-owned woven and knit factories in export processing zones, Universal Jeans Ltd and Pacific Jeans Ltd were the first and second highest exporters in FY18. Fardin Accessories Ltd and RM Interlining Ltd were the top two exporters in other products export categories among Bangladeshi-owned firms in EPZs. In packaging and accessories, Montrims Ltd was the highest exporter while M & U Packaging Ltd was the second-highest exporter in FY18. Uniglory Packaging Industries Ltd was the third-highest exporter. Orchid Trading Corporation has been named as top exporter in other primary products category while Eco Fresh International and M/S-Bang-Chung Trade & Tourism has been named as the second and third top exporter in the sector. Mir Telecom Ltd has been a top exporter during the FY18 in the other services category. Square Textiles Ltd has been named as the highest exporter in FY18 in the products and services for women entrepreneurs or exporters. Al-Salam Fabrics (Pvt.) Ltd was the second-highest exporter. Ibrahim Knit Garments (Pvt.) Ltd has been named as the third highest exporter for the year, according to the notification.

Source: The Daily Star

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