The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 22 SEPT, 2021

NATIONAL

INTERNATIONAL

 

MoS for Textiles Darshna Jardosh inaugurates ‘Vanijya Utsav- Showcasing India a Rising Economic Force’ at Ahmedabad

 Union Minister of State for Textiles Darshna Jardosh has inaugurated a ‘Vanijya UtsavShowcasing India a Rising Economic Force’ at Ahmedabad today. Speaking on this occasion, she said that it is a matter of great pride to witness the rapid growth and rise of the Indian Economy with unprecedented contribution by the Textile Industry. She said that similar Vanijya Utsav will be organized in other cities of the state in coming days. She said that the aim of this Vanijya Utsav is to help small and medium trade and industries and boost our economy. Gujarat Minister of State Jagdhish Panchal also remained present on this occasion. AIR correspondent reports that the two day “Vanijya Utsav” has been organized as part of Azadi Ka Amrit Mahotsav at Ahmedabad Management Association. The event has been organized in collaboration with the Ministry of Commerce, the Director General of Foreign Trade in the partnership of Exports Promotion Councils. Various programmes related to trade, industries and textiles will be held during the two day “Vanijya Utsav”.

Source: News on Air

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GST panel to consider giving waiver on 1 day interest, late fee

"A few taxpayers have reportedly faced difficulty in updation of their Electronic Cash Ledger on 20.09.2021 while filing their GSTR-3B returns," Central Board of Indirect Taxes and Customs (CBIC) said in a tweet. As some taxpayers faced difficulties in filing GST return on Monday, the tax department on Tuesday said the IT grievance redressal committee would consider giving interest and late fee waiver. The Central Board ofIndirect Taxes and Customs (CBIC) in a tweet said a few taxpayers have reportedly faced difficulty in updation of Electronic Cash Ledger on September 20. September 20 was the last day for filing GST returns and paying taxes via GSTR-3B for August. "To mitigate their difficulties, GSTN has been directed to take up the issue of waiver of late fee and interest for one day for such taxpayers, before the IT Grievance Redressal Committee," the tweet.

Source: Economic Times

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India to be 3rd largest importer by 2050: UK Global Trade Outlook

India will turn the third largest importer by 2050 with a share of 5.9 per cent of global imports, right behind China and the United States, and with a share of 6.8 per cent in global gross domestic product (GDP), according to the latest Global Trade Outlook released by the UK department of international trade. The centre of economic gravity has been shifting eastward for decades due to the rapid growth in Indo-Pacific, causing trade patterns to shift as it moves, it said. At present, India is ranked eighth among largest importing nations with a 2.8 per cent import share and is set to become the fourth largest importer by 2030. It is ranked fifth in size of world’s economies with a share of 3.3 per cent. India’s GDP is projected to cross Germany by 2030 to become the fourth largest economy. “The US’s and the EU’s share of most import sectors is expected to decline out to 2030 as the growing purchasing power of Asia’s middle-class accounts for a rising share of global import demand. This change is particularly marked in the food, travel and digital services sectors where larger and increasingly wealthy populations in the Indo Pacific are expected to consume more discretionary goods and services," the document said. “Between 2019 and 2050, 56 per cent of global growth is expected to come from the IndoPacific, compared with a quarter from the EU and North America combined. Growth within the Indo Pacific is also expected to rebalance over time, with South Asia’s contribution (driven by India) rising," it added. China is a major driver of this eastward economic shift as it is expected to become the world’s largest economy by 2030. China already displaced the US in purchasing power parity (PPP) terms (which account for differences in local prices) in the mid-2010s. But based on market exchange rates, which are more relevant for trade, the change is expected to happen around 2030. “At that point, both countries will account for around 22 per cent of global GDP," the report said. “The role of emerging economies in the trading system will rise over time, consistent with their growing weight in the global economy," the report added.

Source: Fibre2 Fashion

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India has collaborated with several nations across sectors to become a global leader in innovation: NITI Aayog CEO Amitabh Kant

 “Technology and innovation are among the primary engines of a nation’s growth and economic development. Many of the significant innovations during the pandemic were led by digitization of businesses,” Kant said at the Global Innovation Conclave organised by the Confederation of Indian Industry on Tuesday. India has collaborated with several nations across sectors like electronics and semiconductors, the blue economy, clean energy, health tech, and deep space research as it aims to become a global leader in innovation, NITI Aayog CEO Amitabh Kant said. “Technology and innovation are among the primary engines of a nation’s growth and economic development. Many of the significant innovations during the pandemic were led by digitization of businesses,” Kant said at the Global Innovation Conclave organised by the Confederation of Indian Industry on Tuesday. India has climbed two notches to be at 46th position in the Global Innovation Index 2021 released on Monday besides emerging as the second most innovative country amongst lower middle income nations behind Vietnam. The government is of the view that several machine learning and AI interventions have led India into a leadership position in innovation. “The Indian innovation ecosystem is driven by the knowledge economy, fundamental research driven by the marketplace and disruptive technologies like machine learning, AI. These interventions have taken India to the innovation leadership position,” VK Saraswat, member NITI Aayog said. India has all the right ingredients for innovation and teamwork with stronger integration of this with the global community will take us to the top for innovation ladder,” he said. Meanwhile, industry body CII said it plans to launch Industry Innovation Rating and Competitiveness Index which will help nurture innovation culture and enhance innovation competitiveness of India Inc. “Innovation plays a critical leadership role for socio-economic growth and development,” CII director general Chandrajit Banerjee said. The Global Innovation Index (GII) provides detailed metrics about the innovation performance of 132 economies around the world and helps create an environment that evaluates innovation factors continuously.

Source: Economic Times

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Haryana to set up Export Promotion Bureau

The Haryana government will set up Export Promotion Bureau to promote exports and provide institutional support to exporters, a top official said on Tuesday. While inaugurating the two-day ''Vanijya Utsav'' being organised in Gurugram, Director General, Industries and Commerce Department, Saket Kumar said that not only incentives are being given to entrepreneurs and exporters in Haryana, but business environment, linkages and other government facilities are also being provided. This State-Level ''Vanijya Utsav'' is being organised by the Department of Industries and Commerce and the Apparel Export Promotion Council working under the Ministry of Textiles of the Central Government on the occasion of “Azadi Ka Amrit Mahotsav”. He said that District Level Export Promotion Committee (DLEPC) has been constituted in every district of the state to facilitate exports. Similarly, a Trade Promotion Committee has been constituted at the state-level to review all types of trade related issues like logistics, agricultural exports and service exports. Sharing more information about the facilities and incentives being given to entrepreneurs and exporters in Haryana through a presentation, Saket Kumar said that Haryana is a fast growing economy with an export value of Rs 1,74,572 crore in the year 2020-21. He also informed that Haryana is exporting goods to the US, Saudi Arabia, the UK, Germany, Nepal etc. The main districts which are exporting goods are Gurugram, Panipat, Karnal, Sonipat and Faridabad, an official statement said. Rice, readymade garments, handlooms and handicrafts, automobiles and their components, metal ware, machinery and parts and medicines and pharmaceutical products are mainly being exported from these districts.

Source: Outlook India

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China manipulated Ease of Doing Business rankings, no irregularities found in Indian data

 An independent scrutiny by leading US law firm WilmerHale shows China's massive data manipulation to hide slippage in the World Bank Group's Ease of Doing Business (EODB) rankings. At the same time, no irregularities were found in Indian data, the probe shows adding the country remains a preferred, reliable and trustworthy investment destination for the world. Last week, the World Bank decided to discontinue publication of its EODB report following allegations of data irregularities due to pressure by some top bank officials to boost China's ranking in 2017. The report assesses regulatory environments, ease of business startups, infrastructure and other business climate measures. Law firm WilmerHale studied 80,000 documents and used extensive interviews to compile its report on 2018 and 2020 EODB rankings. During a sensitive capital raising year of 2017, said WilmerHale, China was able to leverage its clout and pressurise WB top management into reversing their ranking fall which would have otherwise fallen from 78 to 85. On instructions from World Bank President Jim Yong Kim and then-Chief Executive Kristalina Georgieva, the Doing Business team was instructed to recalculate China's number to keep the rank at 78. "The entire episode once again exposes rampant fraud on which Chinese data is built and the integrity of Indian statistics. China has actively defrauded the world's investors to hide their worsening investment climate," according to probe findings. Besides, due to extensive paid contracts given to the World Bank by the Saudi Arabia government in the list of top improvers of 2020, the Doing Business team altered data to put Saudi Arabia on top instead of Jordan. Last-minute changes were also made to the methodology on Protecting Minority Investors indicator, thereby damaging Azerbaijan's score and decreasing its ranking. This was done due to the personal bias of World Bank staffers against the country.

Source: Economic Times

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Putting India’s exports on a sustained growth path

The government needs to invest in transport and logistics rather than rely on ad hoc export promotion measures, which have failed to boost exports Over the past few months, there has been a high degree of optimism regarding India’s export prospects, with commerce minister Piyush Goyal setting a target of $400 billion for FY22. If realised, this target would exceed the highest level of exports that the country has ever achieved, of $330 billion in 2018-19, by over 21%. There are good reasons for optimism; exports have exceeded $163 billion for the first five months (April-August) of the current fiscal, which is nearly 23% higher than the level achieved in the corresponding period in 2019-20, the ‘normal’ year before the Covid-19 pandemic. But, more importantly, April-August 2020-21 witnessed a level of exports that has never been seen in the past. India’s exports surged on the back of consistent recovery of the global economy, especially in the country’s main export destinations. The US and China, the two largest export destinations, expanded by 6.6% and 8%, respectively, in the second quarter of 2021. But in the current quarter headwinds could develop, as China is expected to grow at 2.5%. India’s exporters must override these uncertainties to maintain the exceptional growth in exports recorded in the first half of 2021. The government has lent a helping hand to exporters by notifying the new export promotion scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP). Announced over a year ago, the RoDTEP replaced the Merchandise Exports from India Scheme (MEIS)—discontinued in December 2020. The objective of the RoDTEP is to refund the yet non-refunded taxes and levies imposed on an exported product at the central, state and local levels, including prior stage cumulative indirect taxes on goods and services used in its production, as well as all taxes and levies imposed on its distribution. As compared to the RoDTEP, the MEIS was a very ambitious scheme. Introduced in the Foreign Trade Policy 2015-2020, the MEIS was expected to “offset infrastructural inefficiencies and associated costs involved in export of goods … especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.” Under the MEIS, incentives were issued as duty scrips to be used for payment of several duties by exporters. However, two sets of constraints led to the decision to discontinue the MEIS. First, acting on a complaint made by the US against India’s export promotion schemes, including the MEIS, a dispute settlement panel of the WTO had given an adverse ruling in 2019. The panel ruled that these schemes violated WTO rules on subsidies since they were designed solely for the purposes of improving export performance. The second problem regarding the MEIS was highlighted by the government and substantiated in CAG reports. The department of revenue, as also the NITI Aayog, opined the scheme was inefficient as it did not improve India’s export prospects. In the five years the MEIS was in place, the revenue foregone on account of it was almost `1,32,000 crore, but exports remained sluggish, except in 2018-19. In its Performance Audit of the MEIS conducted for the year ended March 2019, the CAG raised several systemic issues related to its implementation. Among the more important issues raised were the discrepancies between MEIS scrip value and the actual entitlement as per shipping bills. The report pointed that delays in updating the system resulted in incorrect adoption of foreign exchange rates. There were cases of excess grant of MEIS duty credit scrips on account of misclassification of goods leading to claim of higher rates and inclusion of ineligible products. The CAG had, therefore, provided evidence supporting the government’s view that the MEIS was inefficient in delivering results in the form of higher exports. There is, however, a larger issue, which goes beyond the implementation of the MEIS, and this pertains to the efficacy of the export promotion schemes in general. Government data shows that the revenue foregone on account of export promotion concessions since 2014- 15 was over `4,45,000 crore. During this period, the average level of exports was below the psychological figure of `300 billion. The main reasons for this indifferent performance of exports, which was admitted by the government while announcing the MEIS, have been “infrastructural inefficiencies and associated costs.” If India’s exports are to be put on a sustained growth path, it is imperative that this area receives due attention of the government. Efficiencies of trade-related infrastructure in India continue to be relatively low, notwithstanding the improvements over the past decade. Consider, for example, the turnaround time of ships in ports, which is an indicator of how efficiently ports can handle cargoes. In 2020, the average turnaround time for Indian ports was 2.62 days, while the global average in 2019 was 0.97 days. Further, the maximum size of ships that could enter Indian ports in 2019 was nearly 1,54,000 gross tonnes, as against the global average of nearly 2,19,000 gross tonnes, which points to the scale economies that are waiting to be harnessed. Thus, bridging the gap in port efficiencies can make considerable dent in the cost of doing business, thereby lending competitive edge to India’s exports. The focus of the new Foreign Trade Policy should, therefore, be obvious—the government needs to invest and promote investments in transport and logistics, rather than rely on ad hoc export promotion measures, which have failed to promote India’s exports. Professor, Centre for Economic Studies and Planning, School of Social Sciences, JNU

Source: Financial Express

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Bengal decides to distribute threads to marginal weavers

 The West Bengal government is in the process of setting up two hubs in Purba Bardhaman and Cooch Behar districts to sell threads at affordable prices to small and marginal weavers to make their businesses viable, an official said on Tuesday. The initiative is part of the MSME and Textiles department''s strategy to intervene directly in raw material procurement to exclude middlemen from the supply chain as prices of threads are key to the profitability of weavers, he said. "Threads will be distributed among weavers from the two hubs at prices fixed by the state government to control raw material cost, which will support them to stay competitive,” the official said. The work of the Purbasthali project in Purba Bardhaman is in the advanced stage, he said. "With the success of these hubs, the government may set up eight more facilities in future at various strategic locations," the official said. The MSME department is looking to make Bengal self-dependent in production of fabrics in the next few years. The state government itself requires about six crore metres of fabrics to supply uniforms to students of the primary section for free, the official said. Small and marginal weavers, who are mostly involved in contract-weaving, are hopeful of benefiting from the government''s initiative. "Mahajans (aggregators) supply threads to us and provide labour cost to weave. However, if prices of the raw materials become competitive, many of us will try to venture into making our own fabrics and garments," a weaver from Nadia''s Santipur said.

Source: Outlook India

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Indian govt yet to decide on Karnataka's interest in textile parks

Though India’s Karnataka government has shown keen interest in developing mega textile parks in the state, the central textile ministry is yet to take a decision on any of the proposals as the project is still in its infancy, said central textiles ministry secretary U P Singh, who recently interacted with textile industry representatives in Bengaluru. The secretary apprised them about the various incentives offered by the central government to those planning to expand their business. According to Singh, seven mega textile parks have been planned in the country though locations have not yet been decided. Singh added that the parks will come up only in states that fulfill certain parameters like 1,000 acres, investor-friendly policies, good connectivity through road, rail and port, regular water and power supply, according to a news agency report. "Karnataka is one of the garmenting hubs of India. Since the Government of India is offering incentives for five years to the textile industry as well, we wanted to the industrialists here to avail the benefits," Singh was quoted as saying.

Source: Fibre2Fashion

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Exports finally picking up: Industry

 At the inaugural of the AP Trade and Exports Carnival being organised in Vijayawada, the exporters said they are looking for improvement and the State is playing a key role in it. After being bogged down with economic slowdown for nearly two years, exporters are finally seeing signs of revival. At the inaugural of the AP Trade and Exports Carnival being organised in Vijayawada, the exporters said they are looking for improvement and the State is playing a key role in it. Cotton Textiles Export Promotion Council director Ravindranathan Narayanaswamy opined that Andhra Pradesh has a great potential to becoming one of the leading exporters of cotton yarn and textile products as the number of spinning mills are increasing. “During the initial phase of Covid pandemic, there was a slowdown but now the exports are picking up,” he said. According to him, the State is most likely to get Rs 10,000 crore worth investments in high-end spinning mills and textile industries in the next 2-3 years. “Cotton cultivation is less in the State. Hence, its export is not advisable. However, with more spinning mills in the State, cotton yarn of high quality is definitely a safe bet for exports,” he said and added the demand for Indian cotton is double than that of production. “After a pandemic induced slowdown, now the exports have picked up. The accumulated inventory for exports is more than the available ships and freight charges have increased 2-3 times more compared to pre-Covid days,” he said.

Source: New Indian Express

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Reliance set to take over JBF Industries with CFM ARC

 Bankers had sought takeover bids in July, and the Ahmedabad-based CFM ARC is understood to have put in a `825-crore bid for the company, which owes its lenders Rs 2,116 crore. The auction was in the form of a Swiss challenge, where banks ask interested bidders to better an existing bid for an asset. The original bidder gets the right of first refusal. In the case of JBF Industries, the RIL-backed bid by CFM ARC is understood to be the only one. The lead lender to JBF Industries is Bank of Baroda, with an outstanding amount of `500 crore. The other lenders include Canara Bank, Bank of India, Union Bank of India, IDBI Bank, ACRE, Standard Chartered Bank, ICICI Bank, Indian Overseas Bank, DBS Bank, Axis Bank, IFCI and South Indian Bank. Emails sent to RIL, CFM ARC and Bank of Baroda remained unanswered till the time of going to press. According to a bid document, JBF Industries is engaged in the production of products in the polyester value chain, such as PET chips, which are of bottle grade, textile grade and film grade; polyester yarn, such as partially oriented yarn, polyester filament yarn, full drawn yarn and other specialised yarn; and PET films, which are of thin grade, thick grade and metallised grade. The company defaulted on its debt obligations due to its weakened liquidity position, according to a rating report by Care Ratings. In 2020, RIL had acquired a 37.7% stake in textile firm Alok Industries through the insolvency resolution process. It had participated in the bidding process for the company in consortium with JM Financial ARC.

Source: Financial Express

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Africa: U.S.-Africa Trade Policy Faces Uncertain Future

U.S. trade policy toward Africa is facing a conundrum. Much has changed in the two decades since the African Growth and Opportunity Act (Agoa) set the framework for trade between the world's largest economy and its poorest continent. Many observers advocate new policies to increase U.S.-Africa trade and investment, especially with Agoa expiring in 2025. Yet the policy path is less clear than when Agoa became law, and the prospects for a substantial African trade initiative gaining political support are more challenging. When Congress passed Agoa in 2000, the rationale was clear. The United States could no longer ignore Africa, and its 'aid only' policy was bound to fail, perpetuating the continent's economic marginalization. It made no sense to impose tariffs on the world's poorest economies, crimping development. Among the bipartisan cadre of legislators who developed this preferential trade program, and its supporters, including African ambassadors in Washington, there was a zeal to treat Africa fairly. Even still, Agoa was a hard-fought legislative battle over several years. Today, unfortunately, Congress is less equipped to do the work needed to develop and pass bills. Especially with Covid-19, legislators spend less time in Washington building the personal relationships that drove Agoa. You can't build an Agoa-like coalition and legislate very well on Zoom. Some in Congress are dedicated to Africa, for sure, but the Agoa coalition was exceptional. One issue with potential to motivate Congress on African trade is China. Eight Republican Senators recently wrote the Biden administration asking that it prioritize the U.S-Kenya free trade negotiations that the Trump administration initiated. They cited growing economic competition with China (and Russia) in Africa as reason to finish the deal. While China can unify Democrats and Republicans, it's unlikely to move the needle on Kenya. And rather than being encouraging, the letter, signed by no Democrats, suggests partisan division new to Africa trade policy, even though the prod is understandable. The Biden administration has been slow to take up an Africa trade agenda, electing to first hear "an expanded cross-section of voices, values, and potential solutions," U.S. Trade Representative Katharine Tai recently told the Corporate Council on Africa. With the White House looking ambivalent, there is growing unease in Kenya, especially after Ambassador Tai met with her Kenyan counterpart in August and alluded to new U.S. negotiating priorities. Advancing African trade will be further challenged by the expiration of the administration's Trade Promotion Authority this past July, making Congress more difficult to navigate. Meanwhile, China's determined economic engagement all over Africa has exploded since Agoa's passage. To be fair, forging an Africa trade policy isn't easy. Since Agoa became law, there are new players and emergent economies in Africa. Europe has moved away from preferential trade, seeking reciprocal benefits. Sub-Saharan Africa is 46 countries with different levels of development. This year, the African Continental Free Trade Area went into force, and U.S. trade policy should be in sync with this ambitious agenda. Add in regional trading blocs and maneuvering the trade field is even more challenging. In forging economic relations with Africa, the United States could prioritize sectors, a theme of a recent Senate hearing on trade with Africa . The Power Africa program has successfully focused on building Africa's energy infrastructure. Take that cue, some suggest, and target development programs on digital commerce, financial services, and media and entertainment, or other areas where U.S. companies can compete in Africa. These priorities could guide trade policy too. First and foremost, don't undermine Agoa benefits. While poor infrastructure, high shipping costs, and weak rule of law have hampered Agoa, it has had significant successes. South Africa is exporting nearly a billion dollars of automobiles and agricultural items to the U.S. Using Agoa's apparel benefit, Lesotho's textile and apparel industry is providing 40,000 jobs, mainly to women. Without Agoa, these jobs surely would be in Asia. Namibia has seen its beef exports to the U.S. take off, with significant expansion predicted. Agoa benefits should not be treated lightly as Africa struggles, especially with Covid-19. A mixed trade policy is a likely outcome. Some preferential benefits of Agoa, such as its apparel provision, could be extended, others phased out, and others allowed to expire. Some argue to expand Agoa to sugar, cotton, and other agricultural items, a bold idea. Bilateral agreements with select African nations are possible, as is an agreement with AfCFTA. No progress will come easy though. Africans will have their say. The Biden administration is rethinking trade, bolstered by some evidence that agreements have not been very important to the U.S. economy, adding uncertainty. Meanwhile, Republicans are not as supportive of free trade since the Trump presidency. Competition with China could help drive an Africa trade agenda, but supporters must first figure out the policy. Then there is the difficult political environment in Congress and the administration left to tackle. This isn't intended to discourage but to prod a serious and immediate effort on behalf of U.S. economic engagement in Africa. 2025, and China, aren't waiting. Tom Sheehy served on the staff of the Foreign Affairs Committee in the U.S. House of Representatives, the last six years as its staff director.

Source: All Africa

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OECD lowers global, US economic growth forecasts

The world economy has bounced back this year on the back of stimulus measures, the rollout of effective Covid vaccines and the resumption of many economic activities, the Organisation for Economic Co-operation and Development (OECD) said. The OECD warned Tuesday of an "uneven" global economic recovery as it lowered its 2021 growth forecasts for the world and the United States while raising the outlook for Europe. The world economy has bounced back this year on the back of stimulus measures, the rollout of effective Covid vaccines and the resumption of many economic activities, the Organisation for Economic Co-operation and Development (OECD) said. "The recovery remains very uneven, with strikingly different outcomes across countries," the OECD said in its interim economic outlook. Global gross domestic product has surpassed its pre-pandemic level following last year's Covid-induced recession. Global output is now expected to expand by 5.7 percent this year, down 0.1 percentage points from the organisation's previous forecast in May. But the outlook for 2022 has slightly improved, with 4.5 percent growth now expected, up by 0.1 points. "Output and employment gaps remain in many countries, particularly in emergingmarket and developing economies where vaccination rates are low," the report said. The OECD lowered its growth outlook for the United States, from 6.9 to 6.0 percent this year. The US Congressional Budget Office has forecast 6.7 percent growth for the world's top economy. The OECD's eurozone forecast, however, was raised by one point to 5.3 percent, though the outlook varied within the single-currency bloc, with higher growth now expected in France, Italy and Spain while Germany was not performing as well. The growth prospects of Argentina, Brazil, Mexico, South Africa, South Korea and Turkey have also improved, while those of Australia, Britain, Japan and Russia were lowered. The forecast for China, the world's second biggest economy and a driver of global growth, remained unchanged at 8.5 percent. - 'Sizeable uncertainty' - The impact of the Delta variant of the coronavirus has "so far been relatively mild" in countries with high vaccination rates, but it has lowered the momentum elsewhere and added pressures to global supply chains and costs, the OECD said. "Sizeable uncertainty remains," the report said. "Faster progress in vaccine deployment, or a sharper rundown of household savings would enhance demand and lower unemployment but also potentially push up near-term inflationary pressures," it said. However, it added, "slow progress in vaccine rollout and the continued spread of new virus mutations would result in a weaker recovery and larger job losses." Earlier this month, United Nations chief Antonio Guterres expressed disappointment that vaccine-manufacturing nations have been unable to ramp up production toward the goal of vaccinating some 70 percent of the world population by the first half of 2022. "Covid-19 is a wake-up call, and we are oversleeping," Guterres said.

Source: Economic Times

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APTPMA Demands More Incentives to Save Textile Processing Sector From Collapse

All Pakistan Textile Processing Mills Association (APTPMA) Regional Chairman Sheikh Shahid Javaid on Tuesday demanded more incentives for textile processing sector to save it from collapse All Pakistan Textile Processing Mills Association (APTPMA) Regional Chairman Sheikh Shahid Javaid on Tuesday demanded more incentives for textile processing sector to save it from collapse. Addressing a press conference, he said that previous governments had badly ignored the textile processing industry despite the facts that this sector was earning huge foreign exchange for the country. However, the PTI government when came into power took pro-industry steps to revive this sector. In this connection, the government had provided subsidized energy rates for textile sector in addition to implementing "inspector-less regime" policy which provided a sigh of relief to this sector, he added. He said that corona pandemic also affected the globe badly and the entire world had to adopt lockdown strategy against the virus. But, the PTI government once again provided relief to the industrial sector and adopted smart lockdown policy to keep industrial wheel on moving. In this regard, electricity was also provided on comparatively less rates to the textile sector, he observed. He said that after COVID-19, the prices of raw material had increased manifolds at global level due to cartalization which also pushed textile processing industry once again to the verge of total collapse, adding the cost of production had also risen so high. In this scenario, the government once again should take bold step and provide more incentive to textile processing sector in the shape of fixing Dollar prices, reversing freight rates on previous level and imposing zero rate policy on the import of raw material, he demanded. President Faisalabad Chamber of Commerce & Industry (FCCI) Engineer Hafiz Ihtisham Javed,Chaudhry Habib Ahmad Gujjar, Atif Muneer Sheikh, Engineer Rizwan Ashraf and Shabbir HussainChawla also spoke on the occasion.

Source: Urdu Point

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Sustainable fashion: Young people have the power for change

As the spotlight once again falls on global emissions at this year’s COP26 UN climate change conference, attention is focusing on pollution produced by the fashion and textiles industries and the role that the younger generation can play in making them more sustainable. As the COP26 United Nations climate change conference prepares to meet in Glasgow in November, there is an urgency to build on the aims of the 2015 Paris agreement to limit global warming. The fashion sector alone accounted for the release of 654 kilograms of CO2 per person in the EU in 2027, according to a European Parliament report published last year. Globally, the industry is responsible of 10% of overall greenhouse gas emissions, which is more than the accumulative effect of international air travel and shipping combined. Despite these worrying facts, awareness of the problem that the fashion and textile industries pose have been little understood by the overall European population, and there is even less understanding of how to solve this issue. But slowly the focus is shifting in fashion’s direction, driven not least by an interview the young climate campaigner, Greta Thunberg, gave to Vogue Scandinavia, which went viral and gave the topic much-needed exposure. Growing grass-root movements, such as Fridays for Future, are increasingly putting the spotlight on younger people as advocates for future sustainability. The global Youth4climate initiative too is one such example of how young people are pushing for change. The group will hold a pre-COP26 UN summit meeting at the end of this month in Milan, Italy, which will prepare an agenda of priorities and requests to passed to world leaders attending the COP26 events. One of the four subjects that the meeting will focus on is the role 7 played by nongovernmental actors in the fight against climate change in sectors that impact the daily lives of young people, such as fashion. Italian national, Daniele Guadagnolo, is one of the 400 young delegates chosen from the 197 member countries of the UN Framework Convention on Climate Change. Guadagnolo strongly believes that young people can make a difference and that their ability to access more information faster via social media and their overall sensitivity to such issues means they will be an obvious catalyst for change: “They [young people] will be able to create new trends and sustainable ways of living that will change the way we see the world,” he says. But, despite a groundswell of intent towards a more sustainable future, there are many initial problems to overcome in instigating change, not least the cost of making sustainable choices, which is a major factor, particularly for younger people. "We are in the era of consumerism, where buying new garments is actually cheaper that repairing or recycling them. This is a very bad habit, and we have to do something about it,” Guadagnolo says. There are abundant environmental issues to overcome too: the industry pollutes due to the dyes used in the colouring of garments, and the microplastics released during their production, which infiltrate our oceans and waterways and enter our food chain. Current production methods are also unsustainable for their depletion of petrochemicals used in some clothing and textile fabrics. And, while some fibres can be recycled and some are biodegradable, the majority still end up in landfill sites. “Recycling technologies are still in their infancy and many focus on polyester or cotton and their blends. Much work is needed to be able to recycle other alternatives that currently exist in the market, says Dr Chetna Prajapati, a lecturer in textiles at Loughborough University in the UK. Alongside the scientific hurdles of moving towards more sustainable clothing and textile industries, is the problem of how to reach consumers generally and raise awareness of the issue; a factor that will be crucial to making lasting change. Global and European transition to a more sustainable industry will likely only come when consumers are informed enough to alter their shopping habits and put the necessary pressure on businesses and governments to act for change. Allthings.bioPRO is one such project that is helping to raise awareness of just this issue. The European Union backed initiative seeks to engage consumers through the development of a serious game, a phone app and a communication campaign that includes consumer focus groups. And, while these co-creation workshops involve consumers aged between 15 and 70 years of age, younger people have a central role in their development. The online game will offer participants the chance to learn about the bioeconomy and ways to achieve sustainable behaviour in the clothing and textile industries, while the app and focus groups will allow their voices to be heard and channelled to regional policy makers. “Most of the participants have a general idea about it [sustainability in the textile and fashion industry], as the topic is gaining attention, but find it difficult to know what to do about it themselves,” admits Rosanne van Miltenburg from the Dutch organization Fashion for Good, who is one of the project’s workshop facilitators.  But van Miltenburg remains optimistic, despite worries about the cost and lack of new sustainable alternatives. Her participants seem prepared to embrace the idea of moving to buy more second-hand clothes or repairing existing ones. This is a sentiment shared by Prajapati, who says that there is no one “silver bullet” for moving quickly to more sustainable fashion and textiles industries, but rather a set of steps. “Circular, closed-loop regenerative systems are the way forward. Textiles need to be designed to offer either reuse or repair,” Prajapati believes. Alternatively, she says, at the end of a product’s life span, recycling and reuse should be possible, with the option of composting garments that have no further use. Despite the absence of a single answer to the overall problem of sustainability in the industry, it’s now clear that the topic is getting the necessary attention it deserves and moves are afoot to effect change on a national and international level, with much of this impetus being driven by the younger generation.

Source: Youris

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