The secretary also exhorted India Inc not to sit on excess cash reserves but to raise investments to be able to take advantage of strong growth in India’s key export markets. The much-awaited tax refund rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme would be notified as early as August 13, commerce secretary BVR Subrahmanyam said on Wednesday. The move will help exporters better firm up their contracts, factoring in the tax reimbursement. The RoDTEP scheme is supposed to reimburse various embedded levies (not subsumed by the goods and services tax) paid on inputs consumed in exports, which are not refunded now. It replaced the Merchandise Exports from India Scheme (MEIS) from January 1, 2021, but the refund rates are yet to be announced. A similar scheme for garment and made-up exporters — RoSCTL – will be notified “today or tomorrow”, he said. Speaking at a CII event, Subrahmanyam said the government would launch a new scheme in the coming months to transform key districts into export hubs. Under this, districts will be incentivised to compete with one another in catalysing investments to the export sector. Given the robust trade and industrial recovery globally, the secretary exuded confidence that India’s exports will record impressive growth in FY22 and hit the ambitious target of $400 billion. The government aims to scale up merchandise exports to as high as $1 trillion by FY28 and services exports to $700 billion. Even in the best of the years, merchandise exports had hit $330 billion (in FY19) and services exports $213 billion (in FY20). “The US is growing at the fastest pace probably since the second World War. Our trading partners, including Europe, are growing fast. The rest of the world has an opportunity to plug into this growth,” Subrahmanyam said. The secretary also exhorted India Inc not to sit on excess cash reserves but to raise investments to be able to take advantage of strong growth in India’s key export markets. “I would like to urge the entire business fraternity, if you’re sitting on surpluses and piling up cash, I think it’s good to invest because those who invest heavily when the going is bad will have wind in their sails when the going is good,” Subrahmanyam said. To realise the lofty export targets, the government plans to create a market intelligence network by using the service of its 140 embassies and 60 consulates globally. “All of them have a commercial wing with a minister, counsellor or attache. No one has been asking them what you do,” Subrahmanyam said. Now, these officers have been asked to identify export opportunities in the countries they are stationed in and report trade barriers there. The government will also roll out a “Brand India” campaign later this fiscal to raise awareness about its product quality abroad. To ease the process of de-notifying unutilised land across 250-odd special economic zones, the government will soon come out with rules. The secretary stressed the government’s commitment to not just support MSMEs but large firms as well. The production-linked incentive schemes, he said, represent a departure from the past. “For the first time, rather than looking to promote only MSMEs, the government has taken a step forward to promote large scale industrial production. This was unthinkable a decade ago,” he added.
Source: Financial Express
The country''s merchandise exports are expected to touch USD 1 trillion by 2027-28 and the government has laid down a road map, including district as an export hub scheme, to achieve that number, Commerce Secretary BVR Subrahmanyam said on Wednesday. This fiscal, the commerce ministry is aiming at USD 419 billion of exports and for that a detailed analysis has been carried out and the target was disaggregated at the level of country, commodity, region, and states across 31 commodity groups. The secretary said that Indian exports have been roughly fluctuating between USD 290 billion and USD 330 billion for the last 10 years. "We have actually laid down a roadmap on how we hit USD 500 billion in merchandise exports and when we hit a trillion dollar exports. Our guess is that, by 2027-28, very very modest estimates, we should touch USD 1 trillion figure in exports of merchandise," Subrahmanyam said at the CII''s Annual Meeting 2021. He also said that work is underway for the services sector as well and the target is to take these exports to USD 700 billion in 2027-28. The services exports'' sector has "no mother, and they are an orphan in many ways" as it is distributed among 30 different departments of the government, he said, adding "we are going to start an exercise. We export about USD 200 billion services every year. The target is actually to hit about USD 700 billion by 2027- 28". Listing out steps which the ministry is going to take to achieve these targets, he said as Merchandise Exports from India Scheme (MEIS), and Services Exports from India Scheme (SEIS), are stopped now, the government will notify Remission of Duties and Taxes on Export Products (RoDTEP) rates probably by Friday. Similarly, the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for textiles will be notified "today or tomorrow" and this would give a big boost to exports. "We are coming up with a scheme called district as an export hub. If you take 700 districts in the country, the scheme will actually work in a challenge mode. We will ask districts to compete with each other and about 100-150 districts will be funded well to develop quality export infrastructure." he added. The secretary stated that a substantial amount of money would be put in these districts, which would be anywhere between Rs 50-100 crore for one district. "We also intend to set up a market intelligence network....We are going to launch a brand India campaign a bit later in the year," he said. About market intelligence, he said that the export target has been given to 140 Indian embassies and 60 consulates and they would help in providing information like export opportunities in their countries. For the market intelligence network, a Goods and Services Tax Network (GSTN) kind of set up will be developed where exporters would get real time information. For special economic zones, he said as these zones account for 30 per cent of India''s total exports, some simplification is required for them, and by the end of August, "we will be doing a couple of things" for SEZs. "There is a lot of space in SEZ which is free. We are going to ease up the process for denotification of that land. As long as you use that land for industrial purposes, we will allow SEZs land to be hived off," he said. Further he said that another area which is being looked upon by the ministry includes denotification of an idle space. If a company has a building for IT sector and half the building is used and remaining is vacant, "how do you denotify that half building from being an SEZ", he said adding "we have 10 crore sq feet of space idle in built up accommodation in SEZ across the country. If we can actually denotify that space, you can bring that 10 crore sq feet into play for any kind of use. We will probably be able to do that very soon". On the new foreign trade policy (FTP), the secretary informed that it will have a lot of new features and probably few new schemes for promoting exports such as districts as an export hub scheme. "By the end of August, we will have a new FTP ready," he said. He also said that the ministry is working on an "aspirational destination and aspirational products programme", where about 75 products would be picked up for exports to 75 destinations like New York, London, and Tokyo, so that India can become a world leader in some of those items. The ministry is developing a dashboard which will tell how the country is doing in export performance -- country and commodity wise. "We will monitor our performance on hard numbers," he said. He also expressed concerns over massive withdrawals of export incentives at a time when exports are static. "That is something which worries the government. How are incentives getting drawn at three times over 5 years when exports are roughly constant. Any incentive should lead to better performance...You will see the effects very soon,"
Source: Outlook India
The earliest one may be inked with the UAE India will fast-track free trade agreements (FTAs) with at least six nations — including the UAE, the UK, Australia, Canada, and the EU — over the next few months, in line with its revamped foreign trade strategy, Commerce and Industry Secretary B V R Subrahmanyam said on Wednesday. The earliest one may be inked with the UAE. “We have revamped our FTA strategy. India has to engage with the rest of the world. Without that India will be shut out from global markets... The world has moved into bilateral or local/regional arrangements,” he said, adding that such trade deals assume more significance now as India is not a part of any local or regional arrangement. India walked away from China-backed Asian trade bloc Regional Comprehensive Economic Partnership that signed an agreement last year to create the world’s biggest free trade bloc. The government had then said its concerns related to the issue of market access were not adequately addressed. Addressing the Confederation of Indian Industry (CII) annual session, the commerce secretary said about 20 FTAs are under negotiation currently. “We are fast-tracking six of them and putting the rest slightly on the backburner. The earliest FTA that we will probably strike will be with the UAE,” Subrahmanyam said.
Source: Business Standard
With countries increasingly resetting their approach to trade agreements, India is also stepping up its efforts to overhaul its free trade agreement (FTA) strategy. This comprises forging enhanced trade alliances with the EU, Britain, the US and Australia, and being more affirmative to bounded trade deals with these countries and others like Canada, with cautious optimism. While the larger picture is trade, one can’t ignore the potential benefit preferential access to these large markets brings in as inducement for foreign direct investment (FDI) in manufacturing. Traditional wisdom states that FDI in manufacturing is attracted to protected markets where it is cheaper to set up a unit rather than pay the tariffs required to serve them through exports. A 2002 World Bank report cites studies that confirm that high tariff rates on imported goods induced FDI inflows into Britain, Canada and Australia, at that point in time.
Source: Economic Times
We are encountering an era of demand and supply. The number of consumers is expanding. The demand for everything is soaring at an exponential rate and so is the supply. The textile industry is one of the prominent industries, with the perspective of manufacturing & exporting. Historically, fabric manufacturing has been an ancient tradition, that has been embraced by most parts of the country. India is one of the largest manufacturers of fabrics, it holds a distinctive place in the textile world. India's textile and apparel industry accounts for 5% of its GDP, 7% of its value-added output, and 12% of its export earnings. Achieving these numbers is a milestone for any industry. We will not see a decline in fashion and style. So the demand is always going to be high. 45 million people are directly employed in the textile industry. India is expected to grow at a CAGR (Compound Annual Growth Rate) of 20% for the next 5 years, and in terms of money, it would be USD 300 billion. The overall demand for PPE kits has increased by the impact of Covid-19, and that has inflated the production of such fabrics. Sanjay Desai, Director, Fabcurate.com shares his insights on the demand for Indian fabrics. The global textile industry influences every human being on the planet. The global textile industry is currently worth approximately, US $3 trillion and includes production, refinement, and sale of both artificial and non-artificial fibers. The western countries are contributing 32.1 % to the textile export followed by Asian countries. Every part of the world has different requirements and so it gives a window of opportunities for the manufacturers to produce varieties of fabrics. 2% of Global Domestic Product is accounted by the textile industry. As of 2020-21, the textiles and garments industry was worth $103.4 billion. By 2025-26, it is forecast to reach $190 billion. These numbers are proof itself, that no matter the circumstances, these demands are going to rise, eventually. An amalgamation of art and style is a fabric. The process of exporting fabrics has become easier. With the help of technology and a proper communication system, everyone is trying to sell the fabrics worldwide. Coming across the demand, let’s talk about supply. Online fabrics stores are outstretching the cliff, which was never climbed. Fashion influenced people, don’t vacillate in trying something new and fabric ecosystems are the answer to all their questions. They offer the customers a chance to choose their design and the same will be imprinted on the fabrics they desire. Plain, designed, pleated, sarees of the latest style, you just name it and specialised sites have them all. Fashion is evolving at a fast pace, and no one wants to look ordinary anymore. So it's time to hit the internet for fabric shopping. Consumer demand is being met by a variety of start-ups and growing industries. Business is growing and it will for a long time, as we are not going to let our heart be out of date, seeing so much of style in the surrounding. Fabric shops and online stores have significantly increased in number. Demand is a variable thing, and so is the contribution. The one thing that is clear is that there is no shortage of enthusiasm in the fabric industry. In order to keep supply flowing, there are thousands of physical stores and hundreds of online shops. It is not easy to keep up with the constant innovations in the field of fabrics, but that is what industries must do. In the context of our culture & tradition, fabrics play an integral role. We can best express our culture through the clothes we wear, and the way we wear them. Fabric industries are holding up for a long time and nothing is ceasing the progress it is making and will in near future.
Source: Times Of India
The Prime Minister pledged to do more to ensure greater ease of doing business in India but wanted the private sector to pitch in as well. Prime Minister Narendra Modi on Wednesday called on corporate India to awaken its animal spirits and boost investments, taking advantage of a raft of reforms undertaken by his government in critical areas ranging from corporate taxation to labour laws. Calling for further bolstering the partnership to realise the goals of self-reliance, Modi said the economy has again gathered steam after a Covid-induced slide. The latest move to junk a 2012 retrospective tax amendment will correct a historical blunder and boost investors’ confidence in the country’s tax regime, he said at the CII’s annual meeting. Listing out a series of reforms undertaken in recent years, the prime minister said the corporate tax rate has been slashed (to just 15% for new manufacturing units), dozens of offences under the Companies Act have been decriminalised and a maze of complex labour rules have been compressed into just four codes to ensure ease of doing business. The role of the private players in nation-building is being promoted by reducing the overbearing presence of the public sector even in strategic sectors. The Prime Minister pledged to do more to ensure greater ease of doing business in India but wanted the private sector to pitch in as well. “The reforms we have brought in are not ordinary; these were talked about for ages but never attempted,” he said. In probably a veiled reference to the 1991 reforms in the wake of the balance of payment crisis, which, critics argue, had to be undertaken out of compulsion, Modi said: “We are not undertaking reforms under any compulsion but reforms are a matter of conviction for this government.” The GST was stuck for so many years (before its rollout in 2017) because the earlier governments could not muster the courage to take political risks, he said. Commercial coal mining has been given a leg-up; the space sector has been opened up to the private sector; faceless tax assessment has been introduced; and the red tape that had marred the country’s business prospects for decades have been drastically removed. India, which was once apprehensive of foreign investment, is welcoming investments of all types today, the Prime Minister said. The government or the public sector alone can’t catapult research and development activities to the desired level; the role of the private sector is critical in this sector. After a 7.3% contraction in FY21, the economy is expected to grow at 9-11% in the current fiscal, as the impact of the second wave wanes, according to various estimates. To push growth, the government has budgeted a 30% rise, year-on-year, in capex to Rs 5.54 lakh crore for FY22. In the first two months of this fiscal, budget capex has grown by 14% from a year before, and large CPSEs have also acquitted themselves well in sticking to their investment targets, thanks partly to constant prodding by the government. However, it needs massive private capital as well to drive growth. The prime minister said the country’s start-up eco-system has also matured today. From about 3-4 unicorns 6-7 years ago, India now has about 60 of them. Out of these 60 unicorns, 21 emerged in the last few months. Many of them have diverse interests. Investor response has been tremendous for these start-ups and this signals that the country has extraordinary opportunities for growth, he added.
Source: Financial Express
India and Australia's trading relationships are one of the most stable and friendly over the decades, and at present, the relationship is at its peak than ever before. Indian exports to Australia have been growing and supported by many high-level meetings and interactions on business and trade flow between the two countries. These efforts have boosted Indian exports to Australia. The two countries share a historical connection, and both value and demand the products produced in their respective countries.
Textiles and clothing:
In 2001, 25% of India's total export to Australia was in the textile, clothing, and make-up sector. It is estimated to be about $ 204.5 million this year. India has always been a land of fabrics, and there are a huge variety of beautiful fabrics produced in the country. Textiles are intrinsically attached to India, and the demand for Indian textiles is huge across the globe. As Australians have exquisite taste in the fabrics of India, one can specialize and grow as an exporter in this sector. One can start manufacturing and export on a small scale with knowledge in fabric and clothing designs, and once the market is captured, one can start expanding.
Food Products:
In India exports to Australia, the agricultural products sector accounted for 11% of them in 2001. Tobacco exports rose from A$ 2.5 million in 2000 to A$ 4.2 million in 2001, and exports of spices increased to A$ 5.8 million in 2001 from almost A$ 5 million in 2000. Exporting food products from India to Australia is a great profitable trade. Indian tea is renowned across the globe, and the demand for Indian tea in Australia is huge and unparalleled, especially with the variety of tea found in India. This can earn huge revenues. Indian spices is another product that has great potential and is profitable for Exporting to Australia. Buying in bulk is profitable as the price in India is very lower than the Australian market. These products can be sold in the Australian market at much higher prices.
Leather goods for fashion and sportswear:
Exports to Australia from India in leather goods, travel goods, and leather footwear registered a growth to A$ 56 million in 2001 from A$ 55 million in 2000. Leather is one the most profit-making businesses. Leather products of India are in great demand in the market of Australia. Leather shoes, sandals, and other footwear are in great demand. So are luggage bags for travel as well as purses and accessories of leather made from India. Fashion products of leather from the Indian sellers are very good for export. Likewise, leather sports products are in high demand for an enthusiastic sports country Australia. This business also requires you to undergo a proper legal process.
Software Services:
India offers the cheapest Information technology and software services worldwide, and Australia is an important country to take advantage of these services. One can start one's Software firm with few employees, and with proper channels in Australia, various support and other services can be provided to customers in Australia. There is ample opportunity to grow this business and export them to the international market with proper training and knowledge. Competition in this trade is increasing at the same time. It offers new opportunities with time. Australian companies demand critical technologies like website development and designing skills majorly. Tapping this sector will be beneficial for the long term.
Creative and Artists Goods:
Indian art and indigenous products have a rich heritage and have always been recognized as one of the world's most unique and authentic ones. The art and craft of India have always attracted people across the world with time. Australia is one of the top destinations which have authentic creative Indian products in great demand. Giving a platform to creative talent through exports is the right thing to do. A huge number of business clients in Australia can help create market products in the country. Products ranging from gift items to interior designing items are exported from India to Australia at high prices. This is one of the high-profit businesses for Indians in Australia.
Conclusion
Indian exports to Australia have considerably increased over the years, but the scope for development still exists. The governments of both countries are building efforts to expand Indian exports to Australia for it to reach its optimum potential. This is a golden opportunity for trading and exporting products to the island continent. These products are excellent, rewarding and profitable for export to Australia.
Source: Deccan Chronicle
Industry 4.0 evolution by upskilling hundreds of Welspun employees on Data Analytical skills With the vision of being a LifeLongLearning partner for organisations, upGrad for Business, the B2B arm of Asia’s higher EdTech major, upGrad, today announced its partnership with Welspun India Limited, the global leader of home textiles. This partnership aims to cultivate and strengthen the data culture at Welspun, by upskilling 119 employees in Data Analytics in order to drive more efficient business decisions. The manufacturing sector is currently undergoing a shift from traditional manufacturing processes to deploying Nextgen technology to facilitate the automation and digitisation. According to a report by MordorIntelligence, the digital transformation in the manufacturing market was valued at USD 263.93 billion in 2020 and is expected to reach USD 767.82 billion by 2026. Therefore, to equip their employees with the right mindset, skillset, and toolset to be future-proof, Welspun is upskilling their employees with upGrad’s Data Analytics Certification program. As a part of the program, upGrad for Business will be offering contextualised and curated training with Welspun-focused sessions and case studies to ensure relevant understanding for the learners. The certification program will be offering an immersive learning experience to the Welspun workforce, including elements like online selflearning, instructor led live sessions, coaching & mentoring, practice, feedback, and assessment, among others, to enable them to make more datadriven efficient business decisions backed by numbers and factual interpretation. Thus, building a stronger data culture. Commenting on this partnership, MinaxiIndra, President, and Head, upGrad for Business, said, “We are delighted to partner with Welspun and help empower their workforce with the right tools to build a robust data culture. Our mission of bringing wholesome talent development to companies meets with the learning ideals at Welspun.We believe in equipping people with the right skills to create a talent ready environment, especially for the Manufacturing sector. With Industry 4.0 adoption increasing across the world, the need for Data Analytics, Robotics and IIOT will be critical as India has already commenced digital manufacturing operations.” Commenting on this partnership, Rajendra Mehta, President & CHRO, Welspun India Limited said, “We at Welspun firmly believe in adapting to the changing times. As we power through dynamic times we must prepare towards being future ready. The Certification Program on Data Analytics is Welspun’s initiative to prepare its teams for the future by launching programs that seek to build know-how and application of Predictive Analytics, AI/ML use cases, towards optimising our resources as we leap ahead.” Recently upGrad for Business launched a new business solution, upLevel - to provide corporates with an organisationwide on-demand learning capability. Designed keeping in mind the evolving industry requirements and elevated learning paths, the newly launched L&D solution will help the workforce stay abreast of evolving skill sets and trends, thus being future-ready to drive business outcomes. About upGrad for Business: upGrad for Business is the B2B arm of upGrad, Asia’s higher EdTech major. Founded in 2015, the international edtech leader has impacted over 1 million total registered learners in over 50+ countries across the world. With the aim of creating impact at scale through its world-class learning programs and custom solutions, upGrad for Business partners with organizations to equip their employees with the right skill set and mindset to produce a futureproof workforce. Our solutions span across the employee lifecycle to facilitate digital and business transformation in alignment with organisational goals, leading to capability building and value generation With a 93% program completion rate, 3000+ faculty/mentors, outcome-based learning approach, industry-relevant. IIIT Bangalore and upGrad's Executive PG Programme in Data Science with over 10,000 alumni & learner-base, was recommended and validated by the NASSCOM and is aligned to Government approved National Occupational Standards (NOS). upGrad has ranked No.1 in the #LinkedInTopStartups India 2020 list. This is the third time in a row that upGrad has been featured in the #LinkedInTopStartup list after 2018 and 2019. upGrad made it to the GSV Global EdTech 50 List 2020 and has ranked amongst the Top 50 in the FT Asia-Pacific High-Growth Companies 2021. upGrad has been awarded the title of ‘Best Tech for Education’ by IAMAI in 2019, received the ‘Best Education Brands’ award by Economic Times in 2018, and the 'Most Innovative Companies in India' by Fast Company in 2017.
About Welspun India Welspun India Ltd (WIL), part of $2.7 Bn Welspun Group, is a global leader in Home textiles. With a distribution network in more than 50 countries and world class manufacturing facilities in India, Welspun is strategic partners with top global retailers. WIL is driven by its differentiation strategy based on Branding, Innovation and Sustainability. At Welspun India, we are striving to be the global leader in the use of the ESG framework by enabling a sustainable and circular approach in all our operations. We realize the significance of being socially responsible, not only to ourselves, but also to the communities we serve, and our stakeholders. So, we proactively and consistently engage in sustainable practices, thereby leading to sustainable development, with a strong motive of enriching the lives of people where we operate.
Source: Economic Times
That recovery in consumer optimism may be just around the corner, according to a survey by the Reserve Bank of India. While households were downbeat about the current economic conditions, they are hopeful about the year ahead prospects, the RBI said. Indian companies are running out of room to absorb rising raw material costs, which could force the central bank to unwind stimulus faster-than-expected and threaten a stock market rally that has earned billions for investors. Companies from the Indian unit of Unilever Plc to Tata Motors Ltd., the owner of the iconic Jaguar Land Rover, are increasingly complaining about pricier inputs and are frustrated at not being able to fully pass on costs to consumers reeling from the pandemicinduced economic shock. But it is only a matter of time before the pass- through happens, warn economists. “Firms are yet to pass on the increase in underlying input costs due to weak demand,” said Sameer Narang, chief economist at Bank of Baroda in Mumbai. “This will change as growth and consumer confidence revives.” That recovery in consumer optimism may be just around the corner, according to a survey by the Reserve Bank ofIndia. While households were downbeat about the current economic conditions, they are hopeful about the year ahead prospects, the RBI said. Any increase in prices could end up fanning inflation further and complicating the central bank’s efforts to support the economy. While Governor Shaktikanta Das has so far maintained that the inflation hump is “transitory,” the RBI this month for the first time since October last year saw consensus elude it on the need to keep interest rates lower for longer to ensure a durable economic recovery. With inflation already hovering above the RBI’s upper tolerance limit of 6% for the past two months, one of the rate setters, Jayanth Rama Varma, expressed “reservations” about continuing with the accommodative policy stance, Das told reporters Friday. The RBI separately raised its inflation forecast for the fiscal year ending March to 5.7% from 5.1% previously, even as Das underlined the effect of higher global commodity prices, broken supply chains and steep local fuel taxes on price-growth. Data due Thursday will probably show consumer prices rose 5.7% last month, cooling from near 6.3% in June. Wholesale prices -- scheduled for release on Monday -- are likely to show factory-gate inflation at double digits for a fourth straight month. For now, the RBI has kept funding conditions benign, driving a rally in the stock markets. Individual investors by the millions were drawn to stock trading as they chased yields amid inflation and low rates denting returns from traditional sources such as bank deposits. About 14 million first-time electronic trading accounts were opened in the fiscal year. ended March 2021, according to India’s market regulator. For companies too, it’s a fight to protect margins -- a crucial ingredient to delivering higher shareholder value. Firms across the manufacturing and services spectrum are grappling with rising input costs for months now, purchasing managers’ surveys show, trying hard to strike a balance between sluggish consumer demand and the need for higher sales and profits. It is a fight that doesn’t appear to go away in a hurry, especially for manufacturing firms who have had to deal with higher prices of commodities and fuel costs for months on end. For the bulk of the previous financial year, most Indian companies resorted to cost cutting to boost profits, according to a study on corporate performance by the RBI. “In terms of commodity inflation, I think this is something, which we keep on fighting,” said Girish Wagh, executive director at Tata Motors. While its a tough balancing act, companies are mindful that something will have to give in eventually. In this case, it could mean higher prices being passed to consumers gradually as a recovery gets stronger in Asia’s thirdlargest economy. “If commodity inflation remains, of course, we will have to keep working as we are doing already very hard on our savings agenda, but equally, lead price increases,” said Ritesh Tiwari, chief financial officer at Hindustan Unilever Ltd. These increases will be “required to protect the business model,” he said. Others aren’t sure if steep price increases are the right way forward. NSE 0.88 % India Ltd., one of HUL’s competitors, doesn’t favor that route. “You’re caught between a rock and a hard place,” Dabur’s Chief Executive Officer Mohit Malhotra said, instead opting for calibrated increases. “At one end there is demand, which is not very, very resilient and there is inflation hitting us. So we don’t want to price out ourselves as far as the consumer is concerned.” While the global debate between whether price pressures are “transitory” or not is still raging, in India, economists are certain that inflation is here to stay. Not surprisingly, bond and swap investors are pricing in chances of a faster-than expected normalization of monetary policy by the RBI. “We must differentiate between transitory inflation in developed economies and in India,” said Soumya Kanti Ghosh, chief economic adviser at the State Bank of India. “Developed economies had not seen inflation at more than 2% even after incessant quantitative easing. In India, inflation is now running close to 6% for the last one year and almost all inflation prints, headline, core, rural and urban are converging at 6% or upwards implying inflation numbers may not be transitory.”
Source: Bloomberg
Austria’s international technology group, Andritz, has signed a cooperation agreement with US-based CIRC, to bundle each party’s expertise in the field of textile recycling and to upscale CIRC’s recycling technology for commercial use. The agreement comes after months of successful CIRC processing trials at Andritz research and development facilities. CIRC, a recycling technology innovator, has developed and patented textile recycling technology to separate and recover various valuable raw materials contained in most fabrics and used in textile production. The cutting-edge process mainly focuses on the handling of mixed polymer streams, specifically any blend of polyester and cotton, Andritz said in a press release. As part of the agreement, Andritz will engineer, design, manufacture, and start up the process equipment for the first demonstration plant and other commercial textile recycling facilities and provide support in its role as a global technology player. “We have already been very active in the recycling of various waste streams for different industries. We know about the importance of recovering raw materials in order to maintain value. The cooperation with CIRC will enable us to further focus on the rapidly growing textile recycling sector,” Wolfgang Lashofer, senior vice president and division manager of paper, fibre, and recycling at Andritz said in a statement. “In the past year, CIRC’s highly innovative process underwent an intensive development and optimisation programme at our pilot plant in Springfield, US, leading to production runs on a small scale. Thus, we have seen CIRC’s comprehensive capabilities and were very impressed by their highly skilled recycling experts and open-minded cooperation,” Jorma Latva-Kokko, vice president, mechanical pulping, in the paper, fibre, and recycling division at Andritz said. “Andritz has global reach, depth of expertise, and a solid reputation for executing worldclass projects. The Andritz team is working shoulder-to-shoulder with CIRC to implement our vision of a circular economy for textiles and other materials. We are delighted with the high competence of the Andritz staff, and we are more than excited about our next chapters together,” Julie Willoughby, CIRC’s chief scientific officer said.
Source: Fibre 2 Fashion
Vietnamese firms recently sought standard pandemic-related regulations for specific cases for better production and uninterrupted supply chain. Vietnam Textile and Apparel Association (VITAS) chairman Vu Duc Giang said social distancing norms in many localities have put pressure on businesses and stifled production activities in 19 southern provinces. Some localities have not been flexible while implementing the directive and some enterprises with no COVID cases had to close. According to Giang, 97 per cent of textile and garment makers in the southern localities had to suspend operations due to the resurgence of the novel coronavirus. He was speaking at a workshop on solutions for maintaining production during COVID19 organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the Central Institute of Economic Management (CIEM). The textile and garment industry is running at just 10-15 per cent of its capacity. Vietnamese enterprises have been urged by foreign partners to deliver products like garments as no one wants to receive products when the sale season is over. Some garment enterprises based in the south are thinking of outsourcing production to companies in the northern region. However, it is difficult to transport materials from the south to the north and go through checkpoints on the way, according to a report in a Vietnamese newspaper. “Some foreign partners thought of placing orders with other countries instead of Vietnam to ensure uninterrupted supply chains. Many companies have been put on tenterhooks,” Giang added.
Source: Fibre 2 Fashion
Programs by international organizations promoting clean production prompted the Bangladeshi conglomerate to approach manufacturing in a new way From packaging to pharmaceuticals, the DBL Group owns a wide array of businesses. A family owned business founded in 1991, the DBL Group evolved into a diversified conglomerate in Bangladesh since its inception. Its businesses include apparels, textiles, textile printing, washing, garments accessories, ceramic tiles, dredging, semiconductor design, ICT, and telecommunications. With a dedicated workforce of 39,000 employees, the annual turnover of the group for the year 2018-19 was $600 million. Climate change related awareness and initiatives by DBL group began in 2012, informs Mohammed Zahidullah, Head of Sustainability at the organization. “Our journey for climate positive started in 2012 with Cleaner Production of IFC (International Finance Corporation),” said Zahidullah. IFC led Advisory Partnership for Cleaner Textile (PaCT) is a program that supports the entire textile value chain – spinning, weaving, wet processing and garment factories in adopting Cleaner Production practices. It engages with brands, technology suppliers, industrial associations, financial institutions, government to bring about systemic and positive environmental changes for the Bangladesh textile sector and contribute to the sector’s long-term competitiveness and environmental sustainability. “We joined this program through H&M, which is one of our major customers and nominated us for the program,” Zahidullah said. The areas that the DBL Group worked on in relation to clean production evolved over the years. The more attainable goals are the ones that don’t need much investment — the “low hanging fruits”. There are then the “mid-hanging fruits” (which do require investment but can be recovered quickly), and high-hanging fruits, which would require larger investments and more time to make the money back. “Today we have invested in rainwater harvesting, which people are very hesitant to do. We are also moving into water recycling and reuse" “The financing that came in only allowed us to achieve the low-hanging fruits. The reason being, achieving the higher goals would have required for us to stop production and implement the interventions. This was not viable given our scale of production,” said Zahidullah referring to the primary initiatives his organization took. But the interventions that they did implement made them appreciate the benefits, allowing the organization to take measures that it would not have taken before. “Today we have invested in rainwater harvesting, which people are very hesitant to do. We are also moving into water recycling and reuse. We are going in that direction.” Zahidullah says their participation in this program and further steps contributed toward a change of attitude within the industry. Indeed, DBL’s success even found a place in the pages of the New York Times. By investing $80,000 to upgrade equipment like boilers and dyeing and rinsing machines, as well as implementing simple fixes like insulating steam pipes and fixing leaks, DBL managed to cut its water usage by half. Before, DBL used 120 litres of water to produce a kilogram of cloth; now it uses 60 litres. By contrast, many factories in Bangladesh use as much as 170 litres of water to make one kilogram of cloth. “Between the period of 2012 and 2016 we annually saved 1.3 billion litres of water and was able to reduce 705,975 tons of CO2,” said Zahidullah. DBL also plans to install 10MW of solar power plants by 2025. “By 2030 we want to bring down the GHG emission by 25% from the current level of 140,882 tons to 105,561 tons.” Over the years, DBL participated in a number of other programs such as Partnership for Cleaner Textiles, Sustainable Action and Vision for a Better Environment (SAVE), Carbon Performance Initiative (CPI2), Clean Energy Solutions and Energy Efficiency Engagement (3E). “These programs have helped us in increasing resource efficiency and reduction of GHG emissions,” said Zahidullah. As recognition of the measures it took, DBL received the score of “C” in the recently released report by the CDP, an international non-profit organisation that helps companies disclose their environmental impact. “DBL is amongst 17% of companies that reached the Awareness level in the Activity Group of textiles and fabric goods. This is higher than both the Asia regional average of D and the textiles and fabric goods sector average of D,” Zahidullah said.
Source: Dhaka Tribune
