Commerce and Industry Minister Piyush Goyal on Thursday assured the industry that the government will protect its interests in free trade agreements (FTAs) Commerce and Industry Minister Piyush Goyal on Thursday assured the industry that the government will protect its interests in free trade agreements (FTAs) and these pacts would be finalised after holding detailed discussions with all the stakeholders. However, he also exhorted the domestic industry to become competitive and not seek protection for certain sectors in these agreements. If industry thinks it would get greater market access in the US, UK and Canada without opening the Indian market for businesses of those countries as well, "then there is no future of industry, then forget about FTAs and markets," he said. Goyal was speaking at CII's plenary session on 'Synergy Between the Government and Businesses for Sustainable Growth'. Citing an example, he said, "If you think that I (industry) can export textile duty free in Europe and become competitive, but do not allow any thread or textile to come to India, do not open wines sector for them, do not open auto (sector)...If this will be your behaviour, then there is no future of industry, then forget about FTAs and markets." "I can assure you that no FTA will hurt you. Each FTA will be finalised after holding discussions with you...In every product, every country cannot be competitive. "Wherever our strengths are there, we need to exploit that and in some products, we also have to show generous heart, then only FTA can be done, otherwise not. So I will seek your support and cooperation in that," Goyal said. India is negotiating free trade pacts with countries including Australia, Canada and UAE. Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them. The minister also suggested that industry chamber CII can take the lead in creation of a fund with Rs 10,000 crore corpus to provide domestic startups early stage funding, as foreign companies are buying out startups at cheaper rates. "They should all...Tatas, Ambanis, Bajajs and Birlas, all of you should be pitching in. Even if you pitch with Rs 100 crore, Rs 200 crore, Rs 500 crore each, the country's startups will get a huge a support... "Please help in creation of value for our startups, and you will get profit in that also.... even if one out of 10 companies does well...and I would go to the extent of saying that if 1 or 2 or 4 or 10 cases.. go bad, this much you can sacrifice for the country...I seek your apology if somebody did not like my words," he said. He added that the true synergy is that "we both should have equal concerns for our countrymen" and this is a joint responsibility of the government and industry. On vaccination, the minister urged the industry to procure 25 per cent of COVID-19 vaccines and vaccinate people. Industry had made "tall claims" about vaccinating employees, their family members, and villagers around their factories, but "I am waiting to see that synergy and I do urge all of you to reflect on the tall promises made and see what more you can do." Further, Goyal said industry should not look for ways to circumvent government policies like foreign direct investment norms. "When I see Tata Sons that they are objecting for some consumer benefit laws or regulations that I am bringing in, then frankly it hurts...," he said, adding "me, myself, my company, we need to move forward from that." He also urged domestic firms to use made in India goods, even if they are a bit expensive, and show some willingness to support MSMEs and pay their dues timely. "What is our commitment towards India, we need to introspect that," he said, adding there is a need to increase synergy between industry chambers.
Source: Business Standard
Union Minister of Commerce & industry Shri Piyush Goyal today virtually addressed the Confederation of Indian Industry’s Annual Summit’s special session on ‘Synergy between the Government and Business for sustainable growth’. The Theme of this year Annual Meeting is ‘ India@75: Government and Business Working Together for Atmanirbhar Bharat’. While delivering the keynote address, Shri Piyush Goyal said that 75 years ago we worked to get freedom, now we must work in mission mode to become Aatmanirbhar. We have a never-before opportunity to take the country to the sphere of fast-track growth, development and prosperity. At 75, it is about looking at how far we have come and the journey ahead. Shri Goyal said that Azadi ka Amrit Mahotsav is a call to action for 130 crores Indians and 130 crore is not just a number, it is 130 crore possibilities, it is our USP or Unlimited Sources of Potential. He said, we are looking at Jan-Bhagidari and Udyog-Bhagidari for an Aatmanirbhar Bharat.Shri Goyal said India’s youth is a torchbearer of the future. Shri Goyal mentioned that India at 75 is a Declaration for a new India with new dreams, new energy and new commitment. He said thatit will be beacon of hope for the world, guided by ancient wisdom and energised by its youth. Shri Goyal said under the guidance of Prime Minister Shri Narendra Modi, India wants to mark 75th Independence Day as a watershed moment in its history. At 75 we must look ahead with a clear vision, blueprint and resolve for the next 25 years. He said in last 7 years, India under the guidance of Prime Minister has embarked to make structural changes with the mantra of “Reform,Perform & transform has been our guiding light and these changes have made the Indian business ecosystem one of the most competitive ecosystem.Shri Goyal informed that soon to be launched National Single Window System will address issue of “window within a window”. Shri Goyal further added that India has attracted the attention of the world and everyone is looking up to us to take the mantle. He said PLI schemes will be taken up by the business leader to improve our capacity and capability and we are pursuing FTAs with like-minded nations who share our values of democracy, transparency and rule of law. He said our aim is to make Brand India a flag bearer of Quality, productivity, talent and innovation. He added the world is looking towards India for Investment, Innovation or establishment of any Industry and India at 75 is becoming a hub for IDEAS - Investment, Demand, Exports, Aspirations &Start-ups. Union Minister said Covid-19 has caused disruptions in our way of doing things. Post Covid, India will emerge as the driving force on the global stage and the speed and results of vaccination drive are very promising. He said India has inoculated the largest number of people in the world. He called upon the industry to take a leading hand in the vaccination drive to strengthen the synergy between businesses and government. Shri Goyal in his concluding remarks said that the services sector drives on the back of manufacturing sector. For the country size and scale of India, the manufacturing sector is a key player. He appealed to the industry to engage with the Government in supporting efforts to skilling India. The Minister also urged CII to take more responsibility and action to help increase synergy between business and Government.
Source: PIB
While the government will try its best to ensure that the pacts don’t injure domestic industry, some amount of give-and-take in trade negotiations is always inevitable, he said, exhorting local players to shun parochialism of “me, my product and my company”. Since its pull-out of the Beijing-dominated RCEP trade negotiations in November 2019, India has been seeking to clinch “balanced” trade deals with key economies. India is fast-tracking the process of forging fair and balanced free trade agreements (FTAs) with key markets to better integrate with the global supply chain and spur exports, commerce and industry minister Piyush Goyal said on Thursday. While the government will try its best to ensure that the pacts don’t injure domestic industry, some amount of give-and-take in trade negotiations is always inevitable, he said, exhorting local players to shun parochialism of “me, my product and my company”. While some firms seek protection from foreign competition for their finished products, they want unrestricted imports of the goods they consume. “If this becomes the attitude, then the domestic industry won’t have a bright future,” the minister said at a CII event, casting India as a reliable global supplier in the post-Covid world. The statement comes at a time when the negotiation for an FTA with the EU is expected to resume this year after a gap of eight years. The formal talks were stuck as the EU wanted India to scrap or slash import duties on automobiles, alcoholic beverages and cheese, among others. India’s demand included greater access to the EU for its skilled professionals, which the bloc was reluctant to accede to. Post-Brexit, India and the UK are engaged in preparatory work for launching another FTA. The EU, including the UK, was India’s largest destination (as a bloc) in FY20 (before the pandemic struck), with a 17% share in the country’s overall exports. Importantly, the UK accounted for 16% of India’s $53.7-billion exports to the EU in FY20. Since its pull-out of the Beijing-dominated RCEP trade negotiations in November 2019, India has been seeking to clinch “balanced” trade deals with key economies. Goyal called on the industry to take advantage of various production-linked incentive schemes to boost manufacturing and improve exports. Companies have to move out of the traditional ‘jugadoo’ attitude, he said. The minister exhorted domestic players to raise their investments in Indian start-ups in early stages. While many foreign companies are funding our start-ups, local players perhaps remain shy; they, too, need to step up, he added.
Source: Financial Express
New records have been hit in container freight spot rates of all carriers as the Asia-Europe route rates continue to rise and are currently approaching $9,000 per twenty foot equivalent unit (TEU), with further rises expected this month, says the Trade Promotion Council of India (TPCI), which attributed the surge to clogging at major US ports, thereby disrupting the supply chain. “The data from ITC Trade Map shows that, exports to US from India has grown by more than 20 per cent compared to the 2019 in the first quarter of 2021 (April- June period). A change in trend is being observed with respect to exports, which now is more focused towards the proximate markets, where the container turnaround time is shorter and freight costs are affordable, compared to the long haul distances like Europe and US. If this trend continues, India might see a decline in the exports in coming months as these are major markets of our exports,” TPCI said in a statement. During pre-COVID days, cost out of India to North America was on an average $1,800 per TEU, but that has now touched $6,000 per TWU, according to SLT Food Inc’s Sandip Patel, a US-based TPCI member. During the first trimester of 2021, the average prices for 20-feet containers across Europe rose by 57 per cent. A surge in demand along with unexpected high volumes and pandemic-related restrictions were the main difficulties that lead to this problem, Patel added. The US West Coast (USWC) is the worst hit, witnessing a record breaking import volume, labour shortages and massive yard congestion. It is experiencing severe delays and long dwell times, said TPCI. While the US East Coast (USEC) is witnessing an uptick in demand for imports, a lack of truckers and limited yard space and USEC terminals are experiencing heavy congestion and longer than usual dwell times. The industry is also suffering from container companies’ own average delay, which has gone up by 160 per cent to 3.9 days. The industry is worried that if this situation persists, there can be a 5-8 per cent increase in the cost of goods from India and the demand for Indian products may slow down.
Source: Fibre2 Fashion
The minister's comment comes a week after the Centre indicated that with lower utilisation of Covid vaccines by the private sector, its 25 per cent quota may not be necessary. Commerce and industry minister Piyush Goyal said on Thursday call upon industry to take a lead in the Covid-19 vaccination drive to strengthen the synergy between businesses and the government. As of now fourth of the Covid-19 vaccine doses reserved for the private sector are not being utilised, Goyal said at the CII session. The minister’s comment comes a week after the Centre indicated that with lower utilisation of Covid vaccines by the private sector, its 25 per cent quota may not be necessary. Goyal also urged industry to engage with the government in supporting efforts to “skill India”.
Source: Business Standard
Privatisation plans to go unhindered; not yet time to pull back liquidity' Finance minister Nirmala Sitharaman made it unambiguous on Thursday that economic growth was the first priority of the government right now and thanked the RBI for the allegiance it was extending to the cause by not pulling back liquidity. Stating the government wouldn’t hesitate to do whatever was required to revive the economy, she said fiscal and monetary policies were being judiciously commingled to push growth. All indicators were suggesting that “the economy is buoyant and recovery is taking place post lifting of Covid-19 restrictions by states”, she said at the annual meeting of the Confederation of Indian Industry. She, however, cautioned that the economic growth revival hadn’t reached a level where the central bank could begin to suck out liquidity from the system. The finance minister noted that foreign direct investment had been flowing into the country in an uninterrupted manner, having grown 37% in the first five months (of 2021). Referring to structural reforms, including the contentious and now-suspended farm laws and the labour codes passed by Parliament, the minister urged the industry to come forward and invest in the economy. “The Narendra Modi government has shown commitment to reforms even during the pandemic,” she said. On Wednesday, listing out a series of reforms undertaken by his government, including the corporate tax cut, Prime Minister Narendra Modi called on the industry on Wednesday to awaken its animal spirits and boost investments. The latest move to junk a 2012 retrospective tax amendment would correct a ‘historical blunder’ and boost investors’ confidence in the country’s tax regime, he said. During the latest monetary policy review last Friday, the RBI iterated that it would retain its accommodative stance for as long as required to “revive and sustain growth on a durable basis”. RBI governor Shaktikanta Das had earlier opined that the current rise in inflation was transitory in nature and warned that “any hurried or hasty action could completely pull down the economy, at a time when the revival is nascent and hesitant”. Retail inflation, meanwhile, eased to 5.59% in July, after staying above the central bank’s tolerance level (2-6%) for two months, as food inflation moderated sharply to 3.96% from 5.15% in June. Sitharaman said the government was going ahead with reforms agenda which was evident from passage of some key economic Bills, including amendment to insolvency code, LLP Act and general insurance law (to aid privatisation), in the just-concluded Parliament session. With tax revenues improving and disinvestment plans on track, she said the government won’t have much difficulty in funding budget programmes in infrastructure and other areas. “Growth will be pushed both by the RBI and by us. It’s not growth versus inflation. We shall attend to inflation and keep it contained,” she said. “The indicators are very clear that the economy is buoyant… in the sense of recovery time buoyancy… the recovery is very clear,” Sitharaman said. The recent core sector growth was driven largely by public sector expenditure and the government was constantly monitoring public capex, she said. The Union government has estimated to invest Rs 5.54 lakh crore in FY22 via budget, an annual rise of 30%. She noted exports started to pick up (up 48% in July, continuing the momentum seen in last few months). The industry’s main issue with regard to availability of credit was being addressed through an outreach since 2019, she said. On disinvestment, Sitharaman said, “our commitment to disinvestment and privatisation is firmly ingrained in policy. There is no discretion and there is a calendar.” She said the government is on track to complete privatisation of retailer-cum-refiner BPCL and Air India in the current fiscal, among other transactions. She said buoyancy in goods and services tax (GST) would help in releasing compensation to states for shortfall in revenues in a timely manner in FY22.
Source: Financial Express
The index of industrial production (IIP) grew 13.6% in June, primarily driven by the base effect (it had shrunk 16.6% in June 2020). Retail inflation eased sharply in July to 5.59%, having topped the central bank’s target band (2-6%) in the previous two months, as food inflation moderated considerably, showed the official data released on Thursday. The index of industrial production (IIP) grew 13.6% in June, primarily driven by the base effect (it had shrunk 16.6% in June 2020). The IIP still remained 5.2% lower than the pre-pandemic (June 2019) level, suggesting that a meaningful industrial recovery is still non afoot. The drop in inflation eased pressure on the central bank in its bid to supplement growth, given that global commodity prices, especially of oil, have been on the rise and the US Federal Reserve has signalled its intent to raise interest rates later this year. Finance minister Nirmala Sitharaman said on Thursday that the economy had not so far reached the level where liquidity support could be rolled back by the Reserve Bank of India (RBI). The moderation in price pressure has clearly added to policy-makers’ comfort. Still, while retaining the repo rate last week, the RBI raised its inflation forecasts. Inflation in food products, which make up for about a half of the inflation basket, dropped to 3.96% in July from 5.15% in the previous month. However, fuel inflation last month dipped only slightly from June but still remained elevated at 12.38%. Core inflation (excluding food and fuel) is estimated at 5.9- 6.1%, some economists said, having eased a tad from the 6.1-6.2% in June. In the monetary policy statement last week, the central bank said the revival of the south-west monsoon and pick-up in kharif sowing, buffered by adequate food stocks, should help in containing cereal price pressures in the months ahead. Nevertheless, inflation may remain close to the upper tolerance band up to the second quarter, but these pressures should ebb in the third quarter on account of kharif harvest arrivals and as supply side measures take effect, it said. “Taking into consideration all these factors, CPI inflation is now projected at 5.7% during 2021-22: 5.9% in Q2; 5.3% in Q3; and 5.8% in Q4 of 2021-22, with risks broadly balanced. CPI inflation for Q1:2022- 23 is projected at 5.1%,” according to the MPC statement. As for the IIP, consumer non-durables contracted by 4.5% in June. However, other usebased categories recorded a double-digit growth from a year before, thanks to the favourable base. However, their performance was 4-62% lower than the June 2019 level, with capital goods and consumer durables registering the worst performance. Aditi Nayar, chief economist at ICRA, said, thanks to continued unlocking, several of the available high frequency indicators for July –such as coal output, electricity demand, generation of GST e-way bills, non-oil merchandise exports and petrol consumption– have climbed above their pre-Covid (July 2019) level. “Nevertheless, a further normalisation in the base suggests that the IIP growth may slip into single-digits in July.”
Source: Financial Express
Kant calls on industry to focus on digitisation and green tech A day after Prime Minister Narendra Modi called upon industry to reignite its risk-taking abilities, NITI Aayog CEO Amitabh Kant on Thursday said India can never become the next factory of the world by copying China but by having its own model of low-cost green power, which is recognised by the world. “We have always got into sunset areas of growth, this is the time to get into sunrise areas of growth,” Kant said while addressing a virtual event organised by industry body CII. Calling upon industry to set ambitious targets for itself and focus on hydrogen, high-end batteries and advanced solar panels, Kant said India Inc has to go digital, become lean, focus on skilling and invest in green technologies if it wants to compete with the best in the world. Pointing out that only 18 per cent of India’s final energy consumption is in the form of green energy, he emphasised that the remaining portion also needs to come from nonfossil fuel sources. Citing the NITI Aayog’s analysis, Kant said Europe and America together will import close to 500 gigawatts of green hydrogen and green ammonia. “India should target to export at least 200 gigawatts of this green hydrogen and green ammonia by 2030.” He said industry also needs to focus and invest heavily on research and development.
Source: Business Standard
Growth in IIP was led mainly by the manufacturing sector, which grew 13% India’s industrial production grew 13.6 per cent in June from the year-ago period due to the low-base effect, data released by the Ministry of Statistics and Programme Implementation showed. The impact of a low-base declined in June as compared to the last two months. In April and May, growth was 134.6 per cent and 28.6 per cent, respectively, thereby portraying an exaggerated picture of industrial activity. Factory output, measured by Index of Industrial Production (IIP), has been growing sharply since March due to a favourable base effect as industrial activity came to a virtual halt a year ago following the nationwide lockdown. In June 2020, IIP contracted 16.6 per cent. On a sequential basis, IIP grew 5.7 per cent from May, in line with the opening up of the economy, with states gradually easing restrictions after region-wise lockdown during the second wave in April-May. However, it still remained below April’s level, indicating that the pace of recovery is slow. “The steep declines in the number of daily confirmed coronavirus cases and increased economic activity have driven the sequential improvement in industrial activity in June 2021. This improvement has continued in July 2021 as reflected in the manufacturing PMI which was back in the expansion territory after having contracted in June,” CARE Ratings said in a note. The cumulative growth during April-June (2021-22) was 45 per cent, compared to a contraction of 35.6 per cent during the same period a year ago. However, it remained nearly 7 per cent lower as compared to AprilJune (2019-20), or pre-Covid level. Manufacturing sector output, which accounts for more than 77 per cent of the entire index, grew 13 per cent YoY in June as compared to a contraction of 17 per cent last year. On a sequential basis, it grew 7.4 per cent. “Interestingly, the sequential rise in manufacturing in June 2021 (7.4 per cent) was muted as compared to the sharp pickup in the generation of GST e-way bills (36.8 per cent) that month, just as the month-on-month fall in the manufacturing index in April and May 2021 had been narrower than the decline in the e-way bills,” Aditi Nayar, chief economist at ICRA, said. “This confirms that manufacturing activity was less affected during the second wave than the movement of goods across the country, suggesting that the sequential trend in GST e way bills may not always be a good lead indicator of IIP,” Nayar said. Growth in electricity generation stood at 8.3 per cent on-year in June as compared to 10 per cent contraction a year ago. Mining activity, which accounts for over 14 per cent of the entire index, grew 23.1 per cent on-year, as compared to contraction of 23.1 a year ago. However, on a sequential basis, it declined 2.3 per cent from May. “This can be attributed to the lower demand. However, gradual resumption of economic activities in June 2021 restricted the downside,” the note said. In case of user-based classification, consumer durables output witnessed the sharpest expansion of 30.1 per cent in June as compared to a contraction of 35 per cent in June last year and fell nearly 28 per cent sequentially. Consumer non-durables output witnessed a degrowth of 4.5 per cent in June, as compared to a growth of 6.9 per cent last year. Capital goods output, which is reflective of the private sector investment scenario, grew 25.7 per cent, as compared to 37.4 per cent contraction a year ago. “Capital goods and consumer durables continued to clock the worst performance in June 2021 relative to the pre-Covid level, reflecting the impact of the pandemic on both investment plans and demand for big-ticket items,” Nayar said.
Source: Business Standard
With a whopping 73.51 per cent jump during first four months of financial year 2021-22, India's merchandise exports have staged a good comeback from Covid-induced lows hit last year, a report by State Bank of India (SBI) economists showed. Merchandise exports stood at $130.53 billion in April-July 2021 period as against $75.22 billion in same period last year. It also increased by 21.82 per cent from $107.15 billion registered in April-July 2019. The report noted that growth in exports was mainly led by engineering goods, petroleum products, gems and jewellery, textile and garments, and organic and inorganic chemicals. Petroleum products occupy largest share Over the last 25 years, petroleum products have been the biggest contributor to India's merchandise exports, with their share rising from 1.5 per cent in FY97 to around 21 per cent in FY13 and FY14. However, their share reduced to 9 per cent in FY21 due to fall in crude oil prices and also due to the Covid-19 pandemic related lockdowns. Movements in international crude oil prices play a major role in influencing India's crude oil exports. The report states that this year too, this dependence is visible as petroleum exports have been a major factor in the ongoing upwards trajectory of exports. Compositional shift Economists at SBI believe that the overall export basket composition has remained fairly stable in all these years as top 20 HS 2 categories have accounted for nearly 74 per cent to 80 per cent o total exports. Whereas, agri-based products like residues and wastes from food industries, animal fodder, coffee, tea, mate and spices and labour intensive products like carpets and footwear have exited the top commodity export list. Meanwhile, export of components like aluminium, ships, boats and floating structure exports have grown rapidly and are now part of top exports. Some manufactured products like chemicals and pharmaceuticals, electrical and mechanical machinery and appliances, vehicles, articles of iron and steel, plastics have all grown fairly steadily and increased their share, the report noted. At present, engineering goods have the highest share in exports at $35 million during April-July period, up by 70 per cent from last year. However, no segment has grown as much as petroleum sector in the past few years. Share of exports in India's GDP The report stated that in the last 25 years, the weighted contribution of exports to India’s real GDP growth has been in the range of -1.3 per cent to 4.8 per cent. The years from 2003 to 2007 witnessed maximum contribution by exports. But with slowdown in global growth, exports were impacted adversely and the weighted contribution turned negative. The trajectory of global trade has been wobbly and for India the weighted contribution has been modest, and it again turned negative in FY20 and FY21. But one positive observation that SBI economists noted was that despite the pandemic and rapid global slow down, the weighted contribution of exports to growth declined only by 0.9 per cent, as compared to the more than 1 per cent de-growth in previous slowdowns. This gives hope that exports growth will see a positive momentum in the coming years, they said. PLI schemes to boost exports The government announced production linked incentive schemes (PLI) in order to make exports competitive. Sectors covered by the scheme include advance chemistry cell (ACC) battery, electronic/ technology products, automobiles & auto components, pharmaceuticals drugs, telecom & networking products, textile products: MMF segment and technical textiles, food products, high efficiency solar PV modules, white goods (ACs & LED) and specialty steel. All these sectors comprise huge potential for growth.
Source: Times of India
Pakistani experts would participate in 75 international exhibitions proposed for the promotion of commercial activities during fiscal year 21-22. At least 28 such events are taking place in nine Asian countries, with China in the lead with 10 exhibitions. Due to Covid-19, more emphasis has been placed on virtual activities, including online seminars, webinars, and participation in virtual exhibitions; however, some physical exhibitions will also be held during the ongoing fiscal year. Pakistani experts are participating in 75 exhibitions, according to the Trade Development Authority of Pakistan (TDAP)’s official data; 39 Pakistani delegations would visit foreign countries to attend the proposed exhibitions while many foreign delegates would come to Pakistan to participate in such events. According to TDAP, 17 are related to Agro and food, 24 to textile and leather, 17 to engineering and minerals, 10 to services and tourism, and 10 to IMDD. The 10 exhibitions, with Pakistanis’ participation, include the China Intl Fair for Trade in Services (CIFTIS), which will take place in September in Beijing. Regarding textile products, Intertextile Shanghai Apparel is expected to occur on September 21 to 23. China-ASEAN Expo (in Nanning) and The 18th Western China International Fair, both online activities, are also expected during the same year. Pakistan experts will physically participate in the 25th China Seafood and Fisheries Expo in Qingdao, China in October. China International Import Expo (CIIE), an online event, would take place in November. A Pakistani delegation is also expected to participate in InterTextile Shanghai Fabric, China in March 2022. Similarly, the online China Import and Export Fair (Canton Fair) will take place in March 2022. Shoes and Leather, Guangzhou, China is an event with physical attendance in June 2022. The exact date of the event would be determined later. According to TDAP, the Annual Business Plan for international exhibitions is finalized keeping in view the policy of the Ministry of Commerce for focusing more on China and Africa regions.
Source: Daily Times
The Standardization Administration of China issued a national standard GB/T 40270- 2021, Textiles-General technical requirements based on consumer experience, which was included in China’s No. 7 announcement of the approved national standards list in 2021. The new standard for clothing and home textile products will be effective from December 1, 2021. The formulation of current product standards is mainly based on current production processes and overall technical level, with less consideration for the consumer experience. From the perspective of consumer experience, this document constructs an assessment index system based on the subjective perception characteristics of consumers, such as visual, tactile and olfactory, on the basis of basic safety and quality requirements that directly reflect the needs of consumers. As per the standard, general safety technical requirements of textile products shall conform to the requirements of GB 18401 or GB 31701 (products for infants and children) and quality requirements of textile products shall conform to the requirements of related claimed product standard. Characteristics of visual perception of textile products include fibre shedding degree, pilling, resistance to pile loop extraction, force to rupture pocket seams, seam slippage of pocket seams, bursting strength of hosiery toe, colourfastness to washing (staining), colourfastness to light yellowing, shedding of glitter and appearance after laundering or dry-cleaning. Each testing item has its corresponding applicable products or specific parts of product. Characteristics of tactile perception of textile products include prickle, water-vapour transmission rate, tactile sense for permanent label (including brand), tactile sense for zipper, tactile sense for touch and close fasteners, length for floats, slip resistance for hosiery. Each testing item has its corresponding applicable products or specific parts of product. Additionally, characteristics of olfactory perception of textile products shall be no pungent smell. The purpose of the standard is to guide enterprises to pay close attention to consumer demand and the development of standardised technology when designing and producing products to give consumers a good experience and strive to avoid products that bring an unpleasant experience, according to SGS Global Softlines, a global network with 10 laboratories in China, offering a wide range of CNAS and CMA accredited services for textiles, apparel, footwear and accessories.
Source: Fibre 2 Fashion
According to PBS, Pakistan’s textile group exports breached $15 billion for the first time in history during FY21, marking a promising victory for GOP’s export-oriented growth policy. The success of textile exports during the outgoing year is particularly noticeable as it not only came during a pandemic year but is also $2 billion higher than last 10-year average sectoral exports. But can the growth momentum be sustained? First, the link between higher global cotton prices and value of textile exports is hard to miss. (For more, read, “Textile output: flat-lined”, published by BR Research on 16 July 2021). While export value has indeed marked gains, growth in export volume has been muted. Although it would be unfair to attribute all credit to unit prices, a 15 percent rise in raw material prices has fuelled higher export value to some degree. But a more determined force may bear even greater responsibility for the sharp rise in exports during FY21. That is, the concessionary working capital lending to exportoriented textile units. The central bank extends short term Export Finance Schemes to direct and indirect exporters for a maximum period of 180 days. After the most recent round of monetary loosening, EFS borrowing rate was reduced to a maximum of 3 percent, with the more credit-worthy borrowers enjoying borrowing rates as low as 2 percent (annualized). All value-add manufacturers in textile value chain are eligible to avail financing under EFS, provided they can show export performance equivalent to the loan amount (subject to per party lending limits of the sanctioning FIs). Between June-19 and June-21, the sanctioned EFS amount to textile sector as per SBP’s disclosures increased by almost $1 billion, which would indicate that as much as half of the export value growth has come on the back of incremental rise in concessionary lending (June-20 outstanding has been purposefully ignored due to the pandemic led decline in exports). However, since EFS is a short-term working finance facility that is rolled-over every six months, the amount of incremental loan disbursed during FY21 may in fact be double the amount, possibly accounting for almost all of the export growth shown by the textile value add segment during the given period! This is not necessarily worrisome, considering access to financing at competitive rates is the bed rock of successful export growth across many nations in the developing world. Moreover, as long as exporters demonstrate timely realization of export proceeds and commercial banks’ conduct requisite duediligence of leverage levels of borrowing entities, there may be no need to raise alarm bells. However, both SBP’s EFS schemes and lending rates have a limit. Considering that the upcoming Textile Policy aims to double textile exports by 2025, SBP will have to increase sanctioned limits by four times to support the growth momentum. Incremental exports of $15 billion will require additional $7.5 billion worth of EFS loans rolled over every six months. This would theoretically take EFS outstanding from $2.5 billion as at June-21 to $10 billion in next four years. Does the central bank have the appetite to finance the required ballooning of banks’ balance sheet? Moreover, concessionary financing rates are theoretically linked to the policy rate. While a four-percentage point differential may appear acceptable under the current monetary environment where Kibor is at a multi-year low, sooner or later SBP may begin to reverse its policy of maintaining negative real rates. When (and not if) that happens, EFS lending rates will inadvertently move up as well. Will textile players be able to maintain regional competitiveness once the concessionary finance rates are no longer capped below three percent? While capacity expansion and machinery modernization across textile value chain is certainly taking place, it may be high time the central bank runs a sensitivity analysis on the sustainability of textile export growth momentum. Both low cotton prices, and higher EFS lending rates are risks to the $25 billion textile exports thesis. A timely assessment may allow both the GOP and the textile sector to moderate their growth forecasts. Meanwhile, it may be worth to analyse whether textile value-adding firms are reinvesting their improved earnings, and whether working capital growth within the industry is being powered through internally generated cash or not.
Source: Brecorder
There is cause for alarm in the British fashion industry where inclusivity and greater representation continues to be lacking, impacting a loss of potential revenue. The report ‘Representation and inclusion in the fashion industry’, published by the AllParty Parliamentary Group for Textiles and Fashion, found 68 percent of people have experienced or witnessed discrimination in the fashion industry based on appearance or beliefs. The British fashion industry does not pass the inclusiveness test. The report paints a picture that is far from the diversity objectives that the system has set itself for some time. The report looks at the role of the fashion professional and the impacts which a lack of diversity and inclusion has, not only on the individual, but also the economic impacts on the business revenue of a brand and on the wider economy. The report also offers solutions to address the social, cultural and far-reaching implications of a less inclusive fashion industry. 85 percent of respondents do not feel represented Three key areas of diversity and inclusion were addressed: disability, race and LGBTQ+, while acknowledging the urgent need for further research on more areas. The findings show 85 percent of respondents do not feel represented by advertising campaigns, fashion services or fashion shows, and 83 percent stated that the ideological positioning of a brand in terms of inclusiveness has a strong impact in the decision to buy or minus the products. “It is my hope that this paper is read widely, both by industry and government, and that our recommendations serve as a roadmap towards a more inclusive, representative and successful UK fashion industry”, said Dr Lisa Cameron MP, Chair of the All-Party Parliamentary Group for Textiles and Fashion. The survey was drafted by members of the Fashion Roundtable advocacy group, which supports the fashion industry and urges the UK government to move towards a more representative, equitable and sustainable future. Royce Mahawatte, professor of cultural studies at Central Saint Martins and co-author of the report, said the study only scratched the surface of the problem, revealing systems of discrimination and exclusion that are actually much deeper and more rooted in the fashion industry. “While I am delighted that we were able to produce this ambitious report, I am also dismayed by the testimonies we have heard. I hope that both the government and industry can use our warnings and try to address the imbalances we have encountered by taking further avenues in this area of research,” said Mahawatte. Lottie Jackson, journalist, disability activist and editor of Fashion Roundtable said: “For me, the matter extends beyond numbers and commercial incentives. Achieving greater representation in fashion is a moral imperative. We must challenge the systems that tell us, time and time again, that beauty is found in archetypal norms…True representation is about authenticity, empathy and collaboration. In fashion and politics, we must do everything to ensure that a full spectrum of identities are heard, valued and showcased in the most creative of ways. This is where real beauty lies.” About the All-Party Parliamentary Group for Textiles and Fashion Chaired by Dr Lisa Cameron MP, the group was re-established in 2018 to promote the UK fashion industry, supporting and championing new design, British heritage brands, fashion manufacturing, retail and creative talent, as well as business development, and trade.
Source: Fashion United
• The US customs agency is soliciting proposals for ways to identify suspect products in the supply chain, with technologies including DNA-based molecular tagging • New techniques can determine where textiles originate, aiding companies that likely will be required to prove their goods didn’t come from Xinjiang Earlier this summer, the powerful US government agency that oversees America’s borders and ports sent out a call for help: it wanted to stop goods made with forced labour from entering the country, but needed better technology to track them down. “When examining a textile product how do you determine where it came from?” asked a memo from US Customs and Border Protection (CBP) to businesses . “Share your best tech!” It did not mention China by name, but the message was clear. US border agents are preparing for a total ban on all goods entering the US from China’s far-west Xinjiang. region, where Beijing is accused of carrying out a genocide against Uygurs and other mostly Muslim minority groups, and subjecting many of them to forced labour. It has sparked something of a gold rush for science and technology companies hoping to get in on the big business of blocking imports from Xinjiang. “We’re certainly going to pursue it because it’s an interesting business opportunity,” said Ricardo Carossino, the president and CEO of Stratum Reservoir, a company that uses hitech forensic methods to track petroleum supply chains. Already, the federal customs office has heard from companies pitching a range of cuttingedge technologies like DNA-based molecular tagging, genotyping and stable isotope analysis. The agency held a two-day industry event in late June and solicited proposals for new tools to catch products from places suspected of having a high risk of forced labour. “Origin tracing technologies show potential for helping the trade community understand the source of raw materials,” said CBP spokesman Nathan Peeters. The agency has not yet formally solicited any contracts with the companies. But should they decide to, they may have a long line of businesses to choose from. One New York company, Applied DNA Sciences, has worked with the retailer Costco to make sure its luxury Pima cotton goods aren’t being diluted with cheaper cotton. It says the same technology can be used to spot cotton grown in Xinjiang. Texas-based Stratum Reservoir (then operating as Weatherford Laboratories) used its isotope analysis tools to help determine whether oil appearing in the Gulf of Mexico came from the 2010 Deepwater Horizon spill. It says it can use the same methods to track down where textiles originate. The customs agency has already started testing out some of the technology. According to federal records, it paid a New Zealand company, Oritain, nearly US$100,000 last year to conduct a 60-day trial of its isotope analysis methods to trace cotton supply chains. Some clothing retailers already use Oritain’s services. The North Carolina-based brand Cone Denim announced in January that an audit using Oritain’s technology had found that none of its cotton was sourced from Xinjiang. “From everything we’ve seen, it’s real and it works,” Scott Nova, executive director of the Worker Rights Consortium, said of the technology. “If it can – and it appears it can – tell you where the cotton was grown, that’s an enormously powerful tool.” Rising interest in the technologies comes amid growing scrutiny of China’s policies and actions in Xinjiang, where rights groups and some governments believe ethnic minority groups have been detained en masse and subjected to political indoctrination and, in some cases, forced labour. In July, a federal government advisory warned US businesses that they may wind up breaking the law if they don’t leave Xinjiang. Beijing denies committing any human rights abuses in the region. Asked about the technologies, Liu Pengyu, a spokesman for the Chinese embassy in Washington, said “anti-China forces” were trying to manufacture “forced industrial decoupling” with Xinjiang. “But no matter what they do, I want to tell them that attempts to suppress Xinjiang’s economic and social development and undermine its stability and prosperity to contain China will never succeed,” Liu said. US scrutiny of Beijing’s human rights record in Xinjiang has resulted in a flurry of import bans over the past two years targeting specific goods and vendors from the region, including cotton and tomato products. Of all the bans around the world it has ordered since 2020, more than half relate to Xinjiang. And of the US$367 million worth of goods the customs agency has detained this year – a six-fold increase on the previous year – three-quarters were tied to Xinjiang, said Peeters. The agency has also increased the amount of resources it devotes to tackling forced labour, with one CBP official saying in July that it would be doubling the size of its forced labour division by the end of this fiscal year, thanks to new funding from Congress. But pressure on the administration to do more continues to grow. A bipartisan bill making its way through Congress, called the Uygur Forced Labour Prevention Act, would effectively block the import of all goods coming from the region, from jeans to solar panels to toys. The legislation passed the Senate with no objections in July, and a similar version is awaiting a vote in the House, potentially after lawmakers return from their summer recess. If it becomes law, importers would have to prove to CBP that their Xinjiang goods were not made using forced labour. Experts say that is an impossible task because audits in Xinjiang are unreliable. Workers there are reported to be under constant surveillance and unable to speak freely – if independent auditors are allowed into the region at all. “There’s the difficulty of actually getting access on the ground in Xinjiang and conducting audits in Xinjiang because it’s a virtual police state,” said an industry insider at a prominent trade association, speaking on condition of anonymity to discuss what is a touchy subject for retailers hoping to preserve their access to China’s markets. Instead, companies will likely have to find ways to prove that their goods didn’t come from Xinjiang at all. And the new technologies are expected to play a major role in that process. “It’s like CSI for cotton,” said MeiLin Wan, the vice-president for textiles at Applied DNA Sciences. “Even in a criminal case, say the criminal gets caught, they’re not just relying on just one bit of evidence.” DNA molecular tagging involves spraying a bale of raw cotton with a “tag” that contains information about where and when the cotton was grown, and even who processed it. Genotyping, or genetic fingerprinting, can compare the genetic codes of a piece of clothing with raw materials from a certain place to see if they match. Stable isotope analysis, a technique traditionally found in the world of forensics, can compare the chemical fingerprints between apparel and raw materials. Different combinations of elements like carbon and hydrogen can be traced to particular altitudes, temperatures, precipitation and soil types, which can help determine the region where a substance was likely sourced. “We are damaging a lot of T-shirts and hoodies and trousers and so on at the lab,” said Carossino from Stratum Reservoir. “It’s not technologically challenging. It’s just time consuming and getting our hands on the samples.” Despite the promises of powerful, innovative technology that can determine where a Tshirt’s cotton was grown, experts and the tech companies themselves caution that these tools still might not tell the whole story. What if a Xinjiang yarn spinning factory is using cotton grown in the US? Businesses will still have to know their supply chains up and down, experts say. “Technology is just one piece of the puzzle,” said Anasuya Syam, human rights and trade policy adviser at the Washington-based Human Trafficking Legal Centre, who spoke at an event on forced labour that CBP hosted last month. The industry association is exploring a host of screening technologies to recommend to its members, the insider said, but added that retailers would generally not speak out about their efforts to eradicate Xinjiang cotton from their supply chains for fear of jeopardising their market access in China. “We are going to continue to work to end any nexus with Xinjiang,” the person said. “But we’re not going to say anything publicly.” Not all companies have the same attitude. While some industry members are seeking to get ahead of the curve, others view the new technology as a threat to their business, said Nova of the Worker Rights Consortium, a Washington-based labour rights watchdog. “Some are utilising it but many are not, and it’s making them – I can tell you – very nervous,” said Nova, citing conversations with a number of brands’ representatives about their connections to Xinjiang. He declined to name the brands. “They understand that the fact their cotton is from Xinjiang could be exposed tomorrow based on hard scientific data that’s never existed before,” he said. “They’ve controlled that information up until now; now it is outside of their control as a result of this technology, potentially.” Whatever the brands decide to do next, they should have been monitoring their supply chains much more closely all along, instead of waiting for Washington to act and then scrambling to adjust, said Wan from Applied DNA Sciences. “These companies have already wasted decades of doing very little,” she said. “Xinjiang is maybe the nail in the coffin. It’s not like these problems didn’t exist previously.”
Source: SCMP
