The Union Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Shri Piyush Goyal has called upon the ASEAN bloc to do away with Non-Tariff Barriers (NTBs). Addressing the “Special Plenary with the Trade Ministers of the Region: Indo-ASEAN Business”, organised by the CII, Shri Goyal also called for “curbing the misuse of Free Trade Agreements (FTAs) by third parties, often outside the ASEAN Region.” “It is unfortunate that in the recent past we had to deal with several restrictive barriers on our exports to the ASEAN region, particularly in the Agriculture & Auto sector. I think these only result in reciprocal action from other countries including from India, and will hurt the long term desire of our leaders to expand trade between the two countries,” said Shri Goyal, in his address through video conference. Shri Goyal also called upon the ASEAN Bloc to allow reciprocal FTA concessions to imports from India to correct the skewed trade imbalance in favour of the ASEAN. “India has currently been witnessing exponential growth in imports from the ASEAN Region while our exports have been impeded by non-reciprocity in FTA concessions, NTBs, import regulations, quotas & export taxes from ASEAN countries. Such a review will enable alignment with contemporary trade practices, procedures & regulatory harmonization,” said Shri Goyal. “Current trade of about $80 Billion makes Indo-ASEAN region one the largest trading areas globally. Despite increasing trade we are short of the target of $200 bn, which India & ASEAN were to achieve by 2022,” he added. Shri Goyal reiterated the importance for fair, equitable, transparent, reciprocal and inclusive trade rather than enhancing trade through tariff reductions. “Let me also underscore that if we were to review the ASEAN-India Trade In Goods Agreement (AITIGA), it may truly promote trade on both sides, support industry and manufacturing on both sides and help us support each other to truly become modern, progressive economies,” he said. This year marks the 25th Anniversary of India-ASEAN partnership. India’s bilateral trade with ASEAN has grown steadily. India’s merchandise exports to ASEAN increased from $ 23 bn in 2010 to $ 30 bn in 2020. While India’s imports from ASEAN have surged from $ 30 bn in 2010 to $ 44 bn in 2020. Shri Goyal said, under the leadership of the Prime Minister Narendra Modi, India’s “Look East” policy has transformed into “Act East” policy. In the 17th India-ASEAN Summit, on 12th November, 2020, PM Modi had announced contribution to the ASEAN COVID-19 Response Fund. “During COVID-19 pandemic, India has shown its capacity and its capability to the entire world. We not only met all our international service commitments but also became selfsufficient in production of critical medical supplies including PPEs,” he said. Shri Goyal said India is known as the “Pharmacy of the World” by providing Medicines & Vaccines to all. India will give ASEAN nations full cooperation in generic drugs and vaccine manufacturing to meet their demands. To be Aatmanirbhar, India has announced PLI scheme for supporting critical Bulk Drugs & APIs worth nearly a billion dollars, Pharma Drugs ($ 2 bn) & Medical devices ($ 456 mn). “We are implementing one of the biggest vaccination drive anywhere in the world, having crossed 930 million vaccine doses so far, soon going to (reach) the 1 billion mark. We expect that in the next few weeks India will have a fully vaccinated adult population and probably in another 3-4 months we would be fully double dose vaccinated across the length and breadth of the country for all willing adults. Our one day record has exceeded 23 million vaccines,” he said. Shri Goyal said a prosperous ASEAN is central to India’s Vision for Indo-Pacific region with Security And Growth for All in the Region (SAGAR). “With a combined population of 2.1 billion, India & ASEAN countries are home to rapidly growing markets with immense opportunities. By combining our strengths, we can rewrite and make a golden chapter of progress and prosperity for the 30 percent of the world population that reside in ASEAN countries and India,” he said.
Source: PIB
By strengthening its domestic industry, India will offer quality with cost-competitiveness, and thus the country has leapfrogged from ‘Make in India’ to ‘Make in India for the world’, India’s minister of textiles, commerce and industry, Piyush Goyal has said. Addressing the United States – India Business Council’s (USIBC) 46th Annual General Meeting and India Ideas Summit themed ‘From Recovery to Resurgence: reflecting the growing importance of global economic recovery amidst emerging healthcare issues and technological trends’, Goyal said that close partnership between India and the US is central to a free, open, inclusive and prosperous Indo-Pacific region. Goyal said that the COVID-19 pandemic highlighted that supply chains should not be based only on cost but also on trust. He added that India wanted to focus in areas where it has a competitive advantage to become a bigger stakeholder in global value chains. With the recent announcements of Remission of Duties and Taxes on Exported Products (RoDTEP), Rebate of State and Central Taxes and Levies (RoSCTL), Product Linked Incentive (PLI) scheme and the Mega Investment Textiles Region and Apparel Park (MITRA) scheme, Indian textiles and garments are likely to achieve cost competitiveness, and hence textiles and garments could be one of focus areas for the Indian government for its accelerated trade partnerships with countries like the US. Goyal said that the world now looks at India as a reliable and trusted partner and a driving force in the world economy. For a resilient India-US relationship, Goyal called for “multiple dialogues across areas of energy, health, trade and innovation to improve our business to business relationships and provide the people of both countries with better services and opportunities.” The minister said that India is currently negotiating free trade agreements (FTAs) with like-minded nations like Australia, UAE, EU and UK and added that India has been focusing on strengthening 24 sectors where it has competitive and comparative edge. Speaking of a National Infrastructure Pipeline in the making, Shri Goyal said that India was working to boost investment, simplify its tax regime, liberalise its FDI policy and strive to encourage invention, innovation, research and development.
Source: Fibre2Fashion
The people of Santhal Parganas will again get a gift from the Centre, MP Dr Nishikant Dubey held a meeting with Union Industries and Textiles Minister Piyush Goyal in Delhi. In which it was agreed that NIFT College would be opened in Deoghar, apart from this it was also agreed to set up a Textile Park in Godda. MP Dr Nishikant Dubey held a meeting with Union Industries and Textiles Minister Piyush Goyal in Delhi on many industrial issues of Santal Pargana. In this meeting, it was agreed to give many gifts to Deoghar and Godda. MP Dr. Dubey proposed to open NIFT College in Deoghar and link Bhagaiya Mega Cluster of Godda with the PM Mitra scheme of the Central Government. It was agreed upon. Under the PM Mitra Yojana (Prime Minister's Mega Textile Integrated Textile and Apparel Scheme), a textile park will be developed in Godda. This will provide direct and indirect employment to thousands of local people. The dream of FD in the textile sector will come true. The product of Bhagiya Silk will reach all over the world.
Godda handloom needs to be developed in a new design: In the meeting, the MP said: Faculty is now required to develop Godda Handloom Cluster in new design. For this, the National Institute of Design should be setup in Godda. Regarding opening the center of NIFT, MP Dr. Dubey said: Polytechnic College, AIIMS OPD and Agriculture College have been opened in Deoghar. Hotel management studies are going to start soon. The airport will be operational soon. Deoghar is growing fast. Despite this, there is not a single NIFT center here. State's first NIFT College, Deoghar should be opened. Union Minister Piyush Goyal has given his consent to these important proposals of the MP. During the meeting, the MP also suggested to take the initiative to start the construction by removing the bottleneck of the approved International Convention Center in Deoghar. Also proposed to build a multimodal freight hub at Deoghar to develop the transportation facility. With the opening of the Multimodal Freight Corridor, economic development of the region will take place.
Manufacturing Zone and Industrial Corridor Center should be started in Devipur In the meeting, MP Dr. Dubey said: During the tenure of the previous government, the manufacturing zone and industrial corridor center were announced in Devipur. For this, the proposed site of Devipur will also be connected under the Kolkata-Amritsar Freight Corridor scheme of the Railways. This place is on the side of Kolkata-Delhi rail line. With the development of manufacturing zones and industrial corridors, one lakh people will get employment. The MP has intervened on this project and requested the Union Minister to complete the other land related process from the state government. On all these proposals of the MP, the Union Minister has assured to carry forward the work.
Source: Prabhat Khabar
Move ahead of budgetary exercise beginning Oct 12 In a surprise development, Chief Economic Advisor Krishnamurthy Subramanian on Friday announced his resignation. Subramanian, whose tenure is ending on December 6, said he would return to academics. He will rema in office till the end of his term. The announcement has come ahead of the budgetary exercise for FY23 starting on October 12. Sources indicated that the government would soon start the selection process for a new CEA. Subramanian’s successor, even if appointed without delay, will not have much time to write the Economic Survey of FY22 to be released before the Union Budget. “Being provided the opportunity to contribute during a period of tremendous uncertainty and epochal change has been the lucky icing on the cake. So, while being conscious of the enormous privilege bestowed on me, I will happily return back to serving the country as a researcher after fulfilling my three-year commitment,” Subramanian, 50, said in a long statement. The chief architect of the last three Economic Survey, Subramanian is known for interesting concepts such as ‘Thalinomics’, ‘V-shaped economy’ and ‘virtuous investment cycle’. On Friday, he said that Economic Survey had taught him to pick a team like some of the popular captains of Indian cricket team. Subramanian was appointed chief economic advisor to the government on December 7, 2018, nearly five months after his predecessor Arvind Subramanian had stepped down. Subramanian had quit with close to a year of his tenure remaining. He had cited ‘’very compelling reasons’’ to return to the US at that time. In his note, the CEA said he had received tremendous support from the government and that he was fortunate to enjoy a warm relationship with senior functionaries. “I am yet to encounter a more inspiring leader than Prime Minister Narendra Modi. His intuitive understanding of economic policy combines with an unmistakable determination to use the same to elevate the lives of common citizens.’’ Praising Finance Minister Nirmala Sitharaman, he said she’s a scholar at heart and had been instrumental in the Economic Surveys with their free spirit. Citing her commitment and support, he spoke about how the FM had taken draft chapters of the Survey to read on a cross-country flight and had suggested changes that better incorporated India’s institutional features. He added that the FM’s sense of humour and easy manner played a critical role in enabling a healthy debate that is so essential amidst epochal change.
Source : Business Standard
The issue of ailing infrastructure in focal points of Ludhiana and Amritsar was highlighted during a virtual stakeholder meeting of the PHD chamber of commerce and industry (PHDCCI), Punjab chapter, with the state government on Friday. Over four years after the Punjab government, then led by Captain Amarinder Singh, highlighted in its own report how focal points in various parts of the state were in a bad shape, the condition still remains the same with no progress being made on this front. The issue of ailing infrastructure in focal points of Ludhiana and Amritsar was highlighted during a virtual stakeholder meeting of the PHD chamber of commerce and industry (PHDCCI), Punjab chapter, with the state government on Friday. Gurmeet Singh Kular, president, federation of industrial and commercial organisation (FICO), highlighted how since 1996, no new focal point had been given to Ludhiana. “Ludhiana is the world’s second-largest manufacturer of bicycles and bicycle products. The only little progress is that a chunk of land has been given to the Hero group for the Dhanansu cycle valley project. What we need is a focal point in Dhanansu where ancillary units can be set up, but that has not been done. Other focal points are also in a pitiable shape in the state with the government paying no heed to the same,” he said Kamal Dalmia from Amritsar Textile Association said the industry had suffered a lot post the pandemic. “Amritsar needs special funds to be allocated for infrastructure development of the focal point. There are no proper roads and a lack of sewerage at the old focal point in Amritsar. Plots allocated for the fire substation are lying vacant. In 2009, ₹5 crore was allocated for the development of focal points and in the last 12 years, no fresh allocation of funds has been provided by the government,” he said. In 2017, soon after the Congress government was voted to power, an internal report submitted to the chief minister’s office (CMO) by the Ludhiana administration had highlighted the non-availability of waste compactors in focal point areas and the tendency of industries to litter in nearby vacant plots that was taking a toll on solid waste management. Four years on, the situation is still the same. The industrialists also highlighted that the strength of any state was the MSME sector, but the government had not put in place any policy to strengthen this sector and all emphasis was always on the large-scale units while the MSME sector continued to be neglected. Besides, issues like the demand for the abolition of professional tax, trade licence and fulfilling the long-pending demand of the industry to provide power at ₹5 per unit was also raised. Dr Ashok Khanna, former president, PHDCCI, said the government should focus on strengthening the existing infrastructure with modern facilities and an uninterrupted power supply that would act as a magnet for the industries to invest. Tejveer Singh, principal secretary, industries and commerce, said the department of industries and commerce had taken various initiatives to bolster the growth of the industry in the state in terms of providing a stable policy regime, good infrastructure, focal points industrial parks, skilled manpower, good air and road connectivity, reduced compliance and easy allotment to do business. Avneet Kaur, joint CEO, Invest Punjab, said Invest Punjab was a one-stop office for all investments to happen in the state. She apprised industry members of various initiatives taken by the Punjab government in the last 4.5 years with 3,300 projects on board and proposed investment of ₹99,000 crore.
Source: Hindustan Times
During the reporting week ended October 1, 2021, the dip in the forex kitty was on account of a fall in the foreign currency assets (FCAs), a major component of the overall reserves. The country's foreign exchange reserves dipped by USD 1.169 billion to stand at USD 637.477 billion in the week ended October 1, RBI data showed on Friday. In the previous week ended September 24, 2021, the reserves had declined by USD 997 million to USD 638.646 billion. The reserves had surged by USD 8.895 billion to a lifetime high of USD 642.453 billion in the week ended September 3, 2021. During the reporting week ended October 1, 2021, the dip in the forex kitty was on account of a fall in the foreign currency assets (FCAs), a major component of the overall reserves. FCAs declined by USD 1.28 billion to USD 575.451 billion, as per weekly data by the Reserve Bank ofIndia (RBI). Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves were up by USD 128 million to USD 37.558 billion in the reporting week, the data showed. The special drawing rights (SDRs) with the International Monetary Fund (IMF) declined by USD 138 million to USD 19.24 billion. The country's reserve position with the IMF increased by USD 122 million to USD 5.228 billion.
Source: Economic Times
With the growing consciousness towards saving our environment, most brands are trying to shift their image towards sustainability. As the festive season approaches and the inoculation drive picks up pace across the country, players are hopeful that the festive shopping this year will drive positive growth for most retailers, with the possibility of even doing even better sales than the prepandemic levels. Though recovery at the moment looks encouraging across categories, retailers continue to maintain cautious optimism due to the possibility of a third wave of the pandemic. Financial Express Online spoke with Shivendra Nigam, CFO, Cantabil to know about the retail sector in India and the way forward. Excerpts: How has the retail space changed due to the pandemic? The Covid-19 pandemic has changed consumer behaviour and shopping patterns which have automatically affected the retail industry. People have been cautious while venturing out and online purchases have increased. However, this is more driven by a feeling of reluctance and hesitation. Other contributing factors such as decreasing consumer spending, reducing disposable income, prioritising essentials shopping, and others have had some impact in the retail space. Customer preference has shifted towards indoor attires as work from home culture gains prominence. While the disruptions caused by the pandemic did result in a staggered slowdown during peak times, the offline retail space is again reverberating, which is a positive sign for recovery. Customers still majorly prefer the tangible experience of physical shopping. Backed by the major vaccination drive and various COVID appropriate measures, such as, physical distancing, sanitisation, promoting cashless transactions, e-bills, etc., there is renewed customer confidence to catch up on missed shopping experience. Cantabil has been able to successfully capitalise upon the changing trends by implementing an agile strategy and evolving with the times. Consequently, despite disruptions in retail space, we have scripted a record sales of July and August registered as highest ever in comparison to corresponding months. Strong business fundamentals, investing in essential, impactful physical presence and seamless shopping experience have all contributed to the growth. What were the key learnings? The pandemic has been testimonies that even amidst crisis the essential fundamentals associated with customers don’t change. People still would prefer offline shopping if given a safe and secure environment to shop. While customer centricity was always most important for any fashion apparel brand, health, hygiene and sanitation have become essential aspects, almost a precondition, for offering a positive shopping experience. For us, it has been important to ensure that we give a great shopping ecosystem in all the outlets across India. While the pandemic has also inclined customers on digital space, online shopping space and Omni channel approach does require its due focus. With the socioeconomic fabric that India has, offline shopping will continue being the most important medium of sales, even though online shopping will continue to grow. The fact that we have witnessed more than expected footfall which has also reflected in our sales figures is a significant indicator of this trend. While we consolidate our market position by adding more stores and covering more geographies, Cantabil is taking strides in upgrading its digital infrastructure. We have endeavoured to further strengthen our omni-channel strategy, making our debut in the e-commerce space with Myntra, Amazon, Flipkart, Ajio, Tata cliq etc. Apart from this, we have also learned the importance of bringing an in-store feel to the whole digital experience. Moreover, we are stepping up the use of technology in order to remain ahead of trends that are bound to run galore once retailers adapt the ‘new normal’. What are the future plans of Cantabil? The company keep-on expanding its retail footprint and opening 5-6 stores every month. The Company’s plan in the last 3 years to expand in Tier 2/3 cities and beyond along with tier 1 cities has proven a great success and we will keep on expanding our proven growth story. We are also very hopeful to add one more successful chapter in our newly entrant E-commerce venture as a contributor in our top line to achieve our overall targets to reach 1K crore of Turnover in next 5 years. Will you continue to focus on Bharat? Yes, we will be focusing on expansion in tier II, III and IV markets as they have huge potential. In tier III and tier IV the purchasing power of the consumer is slightly limited but our pricing strategy for our products gives the best offers to our customers. We are planning to add our retail footprints in combination of 70% Company owned outlets as well as 30% asset light franchise model. What are your views on sustainable fashion? With the growing consciousness towards saving our environment, most brands are trying to shift their image towards sustainability. With increase in awareness and consciousness both from the customer and manufacturer sides, fast fashion is in a passing phase and is being replaced by sustainable fashion. Hence, brands across categories are trying to redesign their offerings in a way that they can be as close to being sustainable as possible. The consumer today, especially, Millennials and Gen Z buyers, are more environment conscious and they are completely shifting their focus towards brands which support such an approach. For this, the fashion industry across the globe is moving towards sustainable ways to thrive in the market. The brands are adopting conscious sustainable practices in a way to not only attract a loyal customer base but also offer their responsibility towards the environment. Do you think there are any textile reforms needed in the country? If yes. List one. The recent GST council meeting has proposed a structural change to correct inverted duty structure in ‘footwear” and “textile” industry which may significantly impact the readymade garments as well if basic rate of GST of 5% on garments up to taxable value of Rs. 1K goes upwards as retailers would have a dual challenge i.e. apart from managing future impact of upward tax, the additional burden of subsumed GST on in-house inventory as on as on enforcement date would squeeze the margins. This major impacted issue has to be dealt with accordingly by the authorities.
Source: Financial Express
Better genetics and improved agronomy can sustain production so as to be able to generate ‘genuine’ export surplus Domestic production of cotton has been unsteady in recent years. Output of this cash crop has got trapped in a narrow 34-36 million bales range. The need to break the production uncertainty and ensure sustained growth is dire as demand is set to grow rapidly the whole of this decade. There are challenges, though like land constraints, water shortage, climate change and pest attacks, to name a few. At about 12.5 million hectares, cotton planted area is possibly reaching a saturation point. So, the only way to grow is vertical that is through yield enhancement. Our current yields of 500 kg/ha or just about 3 bales per hectare is far below the world average of 750 kg/ha and just one-third of the developed countries’ average. So, the way forward is to infuse multiple technologies right from the input stage and along the value chain. This is critical because even in a ‘business-as-usual’ scenario, India will continue to be the world’s largest producer. The OECD-FAO has projected Indian cotton output to reach 42- 43 million bales by 2030 (from the current 34-36 million bales). But consumption demand is set to grow at a rate faster than production growth rate with India becoming the largest consumer (38-40 million bales) by 2030. The projected supply-demand scenario means tightening availability, limited or possibly no surplus for export and perhaps greater import volumes. Obviously, better genetics and improved agronomy can sustain production so as to be able to generate ‘genuine’ export surplus. Importantly, the domestic apparel industry is set to grow with new investments and continuous growth in mill use. But the industry is facing challenges of technological obsolescence, high input cost and limited access to credit. Also, as a natural fibre, cotton faces competition from synthetic fibres such as polyester. That makes price competitiveness imperative for cotton. This is where infusion of technologies such as digitisation, blockchain and so on can help improve supply chain efficiency and reduce costs. We must recognise and leverage cotton’s strengths. It is natural, green, biodegradable and eco-friendly. The world is moving towards green products. But when synthetics become cheaper due to an imminent fall in crude oil prices over the next 5-7 years competition with cotton will turn intense. It is hoped that a new textile policy on the anvil would take into account the emerging scenario and provide a growth-oriented policy environment while advancing sustainability principles. Excerpts of the author’s speech on October 7 during World Cotton Day webinar organised by IMC Chamber of Commerce and Federation of Seed Industry of India. The author is a policy commentator and agribusiness specialist.
Source: The Hindu Businessline
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has requested the government of Brazil to provide duty-free access to Bangladeshi apparel products. The BGMEA chief made the request when Ambassador of Brazil to Bangladesh Joao Tabajara de Oliveira Junior met him yesterday at its office. They discussed how Brazil and Bangladesh can reap mutual trade benefits through collaboration in the apparel and textile industry. Faruque apprised the envoy of the future priorities of Bangladesh RMG industry, with special focus on diversification in products, market and innovation in product development. He said Bangladesh is willing to import more cotton from Brazil for its ready-made garment industry and requested for cooperation from the Ambassador in this regard. “While Brazil has a huge pool of designers and experts, we have huge manufacturing capacity. Brazil and Bangladesh can work together in developing our capability in designing and manufacturing value-added products which can be exported to South American countries. It will benefit both Brazil and Bangladesh,” he added. They talked about scope of collaboration and support from Brazil especially in building capacity of Bangladesh’s RMG sector in design development for value-added apparel products.
Source: Daily industry
More than 60 million workers around the globe will benefit from concrete guidance on improving safety and health in one of the world’s oldest manufacturing sectors. Experts from governments and employers’ and workers’ organizations have adopted a code of practice on safety and health in textiles, clothing, leather and footwear – the first for these industries. Based on international labour standards and other sectoral guidelines, the code provides comprehensive and practical advice on how to eliminate, reduce and control all major hazards and risks. This includes chemical substances, ergonomic and physical hazards, tools, machines and equipment, as well as building and fire safety. More than 60 million workers around the globe will benefit from the new code, which will be of particular importance to developing countries and emerging economies. “Having spent the past 50 years regulating, enforcing and, in particular, promoting occupational safety and health, I can personally attest to the fact that the adoption of this ILO Code of Practice is a milestone in the textiles, clothing, leather and footwear industries,” said Jukka Takala, chair of the experts’ meeting that adopted the code. “We want to ensure that Rana Plaza will never happen again,” said Kamrul Anam, worker vice-chair, referring to the 2013 Bangladesh garment factory building collapse, in which more than 1,000 people died. “If everyone commits to translating the provisions in this code into action, we can ensure that no worker – in Bangladesh or any other country – will ever have to risk their life in a garment factory again.” The textiles, clothing, leather and footwear industries have been hit hard by the COVID19 crisis. Thousands of enterprises have been forced to stop production, leading to millions of workers losing their livelihoods. “Occupational health and safety is a priority for the employers across the world,” said employers’ vice-chair, John Beckett. “We are confident this code of practice will provide a practical basis for employers, workers and governments to work together to advance OSH prevention culture in the textile, clothing, leather and footwear manufacturing.” Worldwide, about 2.8 million workers die every year from work-related injuries and diseases in different sectors. A further 160 million workers suffer from work-related diseases, and 374 million workers experience non-fatal injuries. More than four per cent of the world’s annual gross domestic product (GDP) is lost as a consequence of workrelated injuries and diseases. “We acknowledge and support the pivotal role the ILO has to play in strengthening both national and sectoral occupational safety and health (OSH) systems,” said government vice-chair, Bastian Fochmann. “With this code of practice on safety and health – and thanks to the excellent contributions of employers, workers and governments – we are now equipped with the occupational safety and health (OSH) tools and approaches the textiles, clothing, leather and footwear industries and their supply chains need to ensure a safer and brighter future for all.” Director of the ILO Sectoral Policies Department, Alette van Leur added: “The COVID-19 pandemic has reminded all of us of how important safety and health, and a humancentred approach are, if we want to build forward better. I am hopeful that as these industries rebound, the new code of practice will serve as a basis for developing national or company OSH management systems and contribute to the overall improvements of working conditions in this sector and beyond.”
Source: ILO.org
Taiwan, one of Asia’s booming textile and tech markets, is betting big on its global fashion standing. The country has increasingly invested in its own creative industries, promoting local fashion designers via its up and coming Taipei Fashion Week. The aim is to bring an international prominence not just to its factories but also to its talent. Back in 2018, Taipei IN Style, an organisation that supports Taiwan’s textile companies and designers, collaborated with Taipei Fashion Week with a mission to connect professionals worldwide, inviting global buyers to participate in Taiwan’s fashion and business matching events and increase opportunities between Taiwanese brands and foreign channels. An important week in Asia’s fashion calendar Taiwan’s Ministry of Culture has taken note and has put its weight behind Taipei Fashion Week to make it one of the four major fashion weeks in Asia, synchronising with similar celebrations held in Tokyo, Seoul, and Shanghai. In a statement Taipei Fashion Week representatives said: “Fashion week is an especially exciting time for us, allowing us to express the full range and diversity of Taiwanese artistry and digital design. The crossdomain and cross-venue cooperation creates a completely new way to choreograph a runway experience – promising a show that attendees will find absolutely unforgettable.” One of the key events a Taipei Fashion Week is CrossLab: Dialogue Between Art and Fashion, which integrates virtual art with traditional physical runway shows. The event brings together six Taiwanese fashion brands with six groups of artists. Riffing on Prada’s SS22 theme of hosting two events simultaneously in different venues, an experiential dialogue aims to allow audiences to enjoy the visceral merger between high-performance tech and physical fashion - transmitting audio and video to each other to “co-act in different places” and conjure a new style of fashion exhibition that combines virtual and physical reality. It also shows the digital prowess of Taiwan as global tech player. This edition of Taiwan Fashion Week is the first full media blitz event to feature an immersive, high-tech 5G experience that exemplifies multiple guiding themes for this year’s event: Sustainability, Functionality, Diversity, Cross Collaboration, and Humanity. “This year we will feature brilliant combinations of six Taiwanese designer brands and artists who bring together art and fashion, while partnering with Chunghwa Telecom’s 5G to transmit and stream multimedia images, technological music, and visual effects. The cross-domain and cross-venue cooperation creates a completely new way to choreograph a runway experience – promising a show that attendees will find absolutely unforgettable. Taipei Fashion Week continues to develop fashion installations illustrating the prosperous and innovative creative merger that is uniquely possible only in Taiwan.” Taipei Fashion Week runs until 17 October.
Source: Fashion United
Readymade garment (RMG) exports from Bangladesh gained 11.48 per cent year-on-year in the July-September quarter, according to the provisional data released by the Export Promotion Bureau. However, increasing prices of coal, raw material supply disruption from China due to power crisis there and other factors may put a break in OctoberDecember. The price of cotton, the main raw material to produce 30-count yarn used for making knitwear, is currently at a decadal high in international market. Bangladesh being the second-largest importer of cotton, may feel a pinch of this price hike. Secondly, the price of yarn is currently high in Bangladesh compared to its competing countries like India and Pakistan. Further, its imports of yarn and fabric from China, the key raw material supplier to Bangladesh’s textile and garment industry, are likely to face delay owing to the current electricity shortage there. Around 95 per cent of man-made fibre yarn that Bangladesh uses for making the final products are imported from China. Bangladesh also does not produce viscose, synthetic fabrics for outerwear, and specialised fabrics for garments. It imports all these from China. Moreover, Bangladesh textile mills are equipped to supply yarn for knitwear and denim fabric, but not for woven apparel. In October-December 2020, Bangladesh imported $446.322 million of yarn, of which $203.241 million of yarn came from China, according to data from TexPro, Fibre2Fashion’s market analysis tool. Likewise, Bangladesh’s fabric imports were valued at $1.693 billion during the quarter under discussion, with China alone accounting for $1.180 billion. In addition, power supply which is needed to keep modern apparel sewing units running, is dependent on coal. Bangladesh completely depends on import for its yearly coal requirement of about 80 lakh tonnes. The global economic recovery post-COVID has resulted in international coal prices skyrocketing by 70 per cent in the past 12 months. It may also be noted here that Bangladesh did not import coal from its neighbouring India for around eight months this year, resulting in a rise in price of coal to about Tk 18,000 per tonne from around Tk 8,000 per tonne a year ago. With India itself facing a shortage of coal, Bangladesh would have to depend on Indonesia for its coal import. While coal is not a direct requirement for the running of the garment industry, the high cost may result in higher cost of power consumption for apparel making units. These days, several orders from China are shifting to other countries under the ‘China plus one’ sourcing strategy being adopted by global retailers, orders are pouring in Bangladesh. So, if production is hampered due to any reason, it would be a challenge for the country’s apparel industry, which accounts for over 80 per cent of export revenue.
Source: Fibre2 Fashion
Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood has announced that investment worth $5 billion is in the pipeline for the establishment of new textile units. Highlighting the positive outcome of the “Make-in-Pakistan” policy, Dawood said in a tweet on Thursday, “Our Make-in-Pakistan policy is beginning to show results. We have been informed that an investment of approximately $5 billion is in the pipeline under which 100 new textile units are expected to be established.” Sharing further details regarding the investment, he said that apart from enhancing export capacity, these are likely to create about 500,000 jobs. “This government has reversed the de-industrialisation and InshaAllah, we are now on a path of industrial growth in Pakistan,” the PM’s aide added. Earlier on October 01, All Pakistan Textile Mills Association (APTMA) Patron-in-Chief Gohar Ejaz announced that the textile industry is going to invest $5 billion by adding 100 new textile plants which will provide 500,000 new jobs and increase textile exports. Addressing the annual general meeting of the association at APTMA House, Gohar hoped to achieve the current year’s textile export target of $21 billion. He mentioned that exports of the value-added sector have shown remarkable growth during FY 2020-21, registering 32 percent in towels, 19 percent in garments, 37 percent in knitwear, and 29 percent in bed wear exports. He added that textile exports increased by 23 percent in last FY, while registering 29 percent growth in the first 2 months of the current fiscal year. In August 2021, textile exports registered a growth of 45 percent over the same period last year.
Source: Daily Times
A milestone global deal to ensure big companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation has finally been agreed after Ireland, Estonia and Hungary signed up to the elusive accord. Multinational corporations will be subject to a minimum tax of 15% from 2023, in a major reform of the international tax system finalised by the OECD on Friday. The framework, backed by 136 countries, including India, seeks to ensure a fair share of taxes for countries where multination. "The landmark deal, agreed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than $125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits, " the OECD said in a statement. The two-pillar solution will be delivered to the G20 Finance Ministers meeting in Washington DC on 13 October, then to the G20 Leaders Summit in Rome at the end of the month. Countries are aiming to sign a multilateral convention during 2022, with effective implementation in 2023, it said. The convention is already under development and will be the vehicle for implementation of the newly agreed taxing right under Pillar One, as well as for the standstill and removal provisions in relation to all existing Digital Service Taxes and other similar relevant unilateral measures. This implies that India will have to withdraw its equalisation levy that it imposes on overseas digital companies. “No newly enacted Digital Services Taxes or other relevant similar measures would be imposed on any company from October 8, 2021 and until the earlier of December 31, 2023 or the coming into force of the Multilateral Convention. The modality for the removal of existing Digital Services Taxes and other relevant similar measures needs to be appropriately. New Delhi has backed the OECD-Base Erosion Profit Shifting talks since the beginning and has been keen on the deal. Four countries - Kenya, Nigeria, Pakistan and Sri Lanka, (out of the 140 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting) - have not yet joined the agreement, it added. This is a major victory for effective and balanced multilateralism. It is a far-reaching agreement which ensures our international tax system is fit for purpose in a digitalised and globalised world economy. We must now work swiftly and diligently to ensure the effective implementation of this major reform,” said OECD Secretary-General Mathias Cormann. The framework has two pillars. Pillar One seeks to ensure a fairer distribution of profits and taxing rights among countries with respect to the largest and most profitable multinational enterprises. It will re-allocate some taxing rights over MNEs from their home countries to the markets where they have business activities and earn profits, regardless of whether firms have a physical presence there. Specifically, multinational enterprises with global sales above EUR 20 billion and profitability above 10% will be covered by the new rules, with 25% of profit above the 10% threshold to be reallocated to market jurisdictions. Original draft had proposed profit in excess of 10% of revenue be allocated to market jurisdictions with nexus using a revenue-based allocation. India has pressed for a higher apportionment. Pillar Two introduces a global minimum corporate tax rate set at 15%. The new minimum tax rate will apply to companies with revenue above EUR 750 million and is estimated to generate around $ 150 billion in additional global tax revenues annually. This will bring more certainty and help ease trade tensions, the statement said. The OECD will develop model rules for bringing Pillar Two into domestic legislation during 2022, to be effective in 2023.
Source: Economic Times
