INTERNATIONAL
The Tirupur Exporters and Manufacturers Association (TEAMA), formed by micro, small and medium scale textile enterprises, has called upon the different associations and forums in Tirupur knitwear cluster to show unity while representing the issues to Government. “It was sad to see different sets of exporters representing the same cluster (Tirupur cluster) giving separate set of representations to Prime Minister Narendra Modi while he has been on a recent visit to Coimbatore. This has been the same for the past many years with the associations and forums making individual representations be it before budget or during the talks with Union and State Ministers. The Ministers and other officials actually will lose the respect for the cluster due to this, even though they might be receptive and courteous to all factions”, pointed out TEAMA president M. P. Muthurathinam. The micro and small scale entrepreneurs were of the view that all associations, shedding the egos, should sit together and come out with a roadmap on the issues that actually needed government intervention instead of highlighting only the needs of tax and duty exemption in every front.
SOURCE: The Hindu
The Textile Association of India (TAI) – Karnataka unit organised a two day International Textile Conference at Nimhans Convention Centre, Bangalore from January 22-23, 2016. The conference, alongside which a trade show was also organised, was inaugurated by textile commissioner of the state, Dr. R Raju, who explained about the development activities of textile industries in Karnataka. He said that the Karnataka state government was putting more emphasis on development of industry both in Bangalore as well as outside Bangalore areas.
According to him, the state government offered opportunities for the growth of industry like; good roads, availability of water, electricity and infrastructure even in rural areas. He also said that the government has contributed 2,500 acres of land through industrial development, while electrical infrastructure of up to 2500 MW has been made available. Arvind Singh, president of TAI informed that financial problems of developed countries have affected the textile industries in India. He said besides traditional textiles, there are other opportunities coming up in the sector like nonwovens textiles, medical textiles, geo-textiles etc, and urged everyone to make use of the opportunity. Prem Malik, president of CITI spoke on the requirement of developing basic infrastructure for the growth of industry.
SOURCE: Fibre2fashion
Despite the slowdown in the export market and subdued domestic demand, diversified group Raymond is ramping up its cotton fabric manufacturing capacity. A senior company official said that in the next three years, the company will increase its manufacturing capacity to 46 million metres annually from the current 21 million, through a new plant at Amravati and its existing plant at Kolhapur. The company is investing Rs 450 crore in a new textile unit at Nandgaon Peth in Amravati district in Vidarbha. The plant will have an annual capacity of 20 million metres of cotton fabric. "With the new plant at Amravati, we will ramp up our production capacity up to 46 million metres in the next three years. Our Kolhapur facility is looking to scale up its overall production to 26 million metres by 2018. We are upgrading our technology and machines at the Kolhapur plant," said S K Gupta, president (shirting business) and group CEO (UCO Denim), at Raymond. For the Amravati plant, the company has been allocated 500 acres by the Maharashtra government. The Maharashtra state government has decided to set up textile parks in the cotton belt of Vidarbha, as well as in Marathwada and north Maharashtra through state Industrial Development Corporation (MIDC). Similarly, the state government has allocated 102 hectares of land collectively to Shyam Indofab Ltd, VHM Industries, Suryalaxmi Cotton Mills and Siyaram Silk Mill where a total investment to the tune of Rs 1500 crore is expected. These units will employ about 5,200 people.
Raymond’s 55-acre Kolhapur plant currently manufactures cotton and linen shirting fabric with a production capacity of about 21 million metres, which will be increased to 26 million by 2018. Raymond exports 15% of its total production to markets like Australia, North America, Brazil, Europe and the Middle East. It has a market share of 60% in cotton fabric manufacturing. "Given the industry benchmark of producing 93-94 per cent fresh fabric in the country, this is the only plant to produce 97 per cent fresh fabric without any rejection that sets it apart from the competition and also results in huge cost saving for the company," Gupta said. The Kolhapur facility currently employs more than 800 people and secures 20% of its overall orders from exports.
Last month, Raymond reported a 28.46% decline in consolidated net profit at Rs 40.11 crore for the third quarter ending December 2015, down from Rs 56.07 crore during the same period in the previous financial year. However, Raymond's total consolidated income from operations during the quarter increased 7.36% to Rs 1,484.40 crore as against Rs 1,382.58 crore in October-December 2015. Raymond is raising up to Rs 100 crore through issuance of non-convertible debentures (NCDs) on private placement basis. However, the company did not indicate end use of fund it plans to raise.
SOURCE: The Business Standard
The Maharashtra Industrial Development Corporation (MIDC) has started survey to develop the proposed textile parks at Sayane in Malegaon tehsil of the district and would be sending the proposal to develop infrastructure such as road, water supply, streetlights to the head office in Mumbai, shortly. The MIDC has proposed the textile park on 113 hectares, of which, 100 hectares have been acquired by the MIDC so far. The state agency is in the process of acquiring the remaining land. An official from MIDC said that they have acquired 100 hectares of the total 113 hectares at Sayane in Malegaon tehsil for the proposed textile park. They have already started survey prior to developing infrastructure there. The expenditure is estimated at around Rs 30 crore. At Satpur and Ambad industrial estates, both within the city limits, are fully occupied and there is no land available for further expansion. Industrial growth has been hampered due to non-availability of land here. At this juncture, land acquisition at some locations would help to boost the industrial sector. The MIDC has notified around 5,000 hectares for industries across the district and they are under various stages of acquisition. About 200 of 339 hectares have been acquired at Talegaon-Akrale in Dindori tehsil, while 109 hectares and 100 hectares have been acquired at Yeola. Moreover, negotiations with farmers for acquiring 128 hectares at Gonde and 109 hectares at Sinnar are to be started.
SOURCE: Yarns&Fibers
India, concerned at being sidelined from the U.S.-led Trans-Pacific Partnership (TPP), is stepping up efforts to reach agreement with an alternative trade bloc centred around China, and hopes to reach a deal this year. India, concerned at being sidelined from the U.S.-led Trans-Pacific Partnership (TPP), is stepping up efforts to reach agreement with an alternative trade bloc centred around China, and hopes to reach a deal this year. New Delhi has long been seen by many countries as an intransigent player at the World Trade Organization (WTO), a multilateral forum that has struggled to find the consensus it needs to move forward. Now, after 12 advanced economies accounting for 40 percent of the global economy signed a TPP deal this month, India's trade negotiators feel they need to get a move on. Prime Minister Narendra Modi has backed an export-focused 'Make in India' drive as the path to prosperity for Asia's third-largest economy, where per capita output is $1,688 a year, one fifth that in China.
With TPP out of reach - India was not invited to join - India's negotiators are focussing instead on a Chinese-led grouping called the Regional Comprehensive Economic Partnership (RCEP) that would improve its access to Asian markets. Trade representatives meet in Brunei from Feb. 15-19 to iron out differences on tariffs. A senior New Delhi official, who asked not to be named, told Reuters that India was hopeful of striking a tariff-cutting deal this year, in the clearest indication yet that India wants to accelerate progress on a bloc first launched in 2012. Ganeshan Wignaraja of the Asian Development Bank said a breakthrough on RCEP would help mitigate the competitive disadvantage of India being absent from the TPP. "Concluding an RCEP agreement would mark a key milestone for the Modi government," he said. Experts caution that India has shown little appetite to open its market to imports, even as it seeks to ramp up exports, not least because of a gaping trade deficit with China. "India is worried about opening up to China," said Professor Bernard Hoekman, a trade expert at the Robert Schuman Centre for Advanced Studies in Italy, adding he very much doubted an RCEP deal would happen this year. With the TPP lacking votes in Congress and likely to be put on hold if a Republican is elected U.S. president, any sign China is seizing the initiative in the trade arena could raise concerns over Washington's declining clout in Asia. Beijing has already redrawn the financial map by launching the Asian Infrastructure Investment Bank, with backing from close U.S. allies like Britain.
LOSING BUSINESS
New Delhi fears the TPP, although years away from reality, could mean losing some textile and drugs exports to countries like Vietnam, which has embraced both the TPP and the RCEP. It could also raise barriers to entry on labour, environment and intellectual property when it comes to seeking access to other markets, officials said. "The TPP will certainly have an impact on India's exports," Commerce Minister Nirmala Sitharaman said. "It is most likely to affect sectors like leather goods, plastics, chemicals, textiles and clothing." Talks on creating the 16-member RCEP could be the last hope for some Indian companies to break into the global supply chain. The group comprises the 10 members of the Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, India, Australia and New Zealand. If signed, the regional free trade agreement would create an economic bloc with a population of 3.4 billion and trade volume of over $17 trillion. "We can't waste time," said Chandrajit Banerjee, director general of the Confederation of Indian Industry, which represents manufacturers. "TPP will basically change the landscape of global trade." Successful export industries, particularly garment and drug makers, are urging Modi to speed up RCEP talks and wrap up trade deals with the European Union and Australia. But steel, tyre and chemical firms want him to go slow, saying they have been undercut by free trade pacts already done with ASEAN, South Korea, Thailand and Japan. Indian merchandise exports have fallen for 13 months in a row, depressed by weakening global demand and slumping commodity prices. To boost its stagnant 1.7 percent share of global exports, India needs to raise productivity and move up the value chain, economists say.
SOURCE: The India Today
Australia today said the long-drawn negotiations for the proposed free trade agreement (FTA) with India to boost two-way commerce are expected to conclude by the first half of this year. The talks for a comprehensive economic cooperation agreement (CECA) also known as FTA between India and Australia were started in 2011 to provide fillip to both trade and investments between the two countries. Australia Minister for Trade and Investment Andrew Robb said that he and Indian Commerce Minister Nirmala Sitharaman took stock of the progress of talks in Nairobi in December last year. "We sat down in Nairobi, we had a long session with their officials and the minister and we took stock at where we were and how much longer we could expect and we both agreed that and the officials concurred that in the first half of the year (2016) we can finish this," Robb told PTI. "So that's the objective and I don't think anything has happened since. In fact we got our work done in January and now in February they (officials) are meeting again on some very important issues," he added. Both the sides were expecting to conclude the negotiations last year only but there were differences on areas like duty cut in dairy and wines.
Several rounds of negotiations have been completed for liberalising trade and services regime besides removing non-tariff barriers and encouraging investments. Australia is pushing for tariff reduction in dairy, fresh fruit, pharma, meats and wines. On the other hand, India wants zero duty on auto parts, textiles, and fresh fruits, including mangoes and greater access in services sector. The bilateral trade stood at USD 13 billion in 2014-15 as against USD 12.12 billion in the previous fiscal. When asked whether India is waiting for finalisation of Regional Comprehensive Economic Partnership (RCEP) and then go for this FTA, the Australian Minister said: "Things are being done in parallel and the one is not contingent on the other so that's been the position." Both India and Australia are part of the mega trade deal RCEP, which is also under negotiations. "Of course RCEP negotiations inform some of the things that we are doing. We both are in RCEP. But a lot of the bilateral issues we do stand in line and we feel that bilateral can be useful in some areas. Certainly in the positions we both adopt in RCEP," he added. "RCEP is something that is programmed to finish sometime later this year, whereas the CECA sometime early this year," Robb added. The 16-member bloc RCEP comprises 10 ASEAN members and their six free trade agreement partners. RCEP negotiations were launched in Phnom Penh in November 2012. The 16 countries account for over a quarter of the world's economy.
SOURCE: The Economic Times
India continues to report over 7 per cent GDP growth, but its momentum has weakened and the country’s growth is well “below trend”, says a Deutsche Bank report. According to the global financial services major, India’s GDP and gross value added (GVA) grew by 7.3 per cent and 7.1 per cent, respectively in October-December 2015, reflecting a slowing growth momentum from the first half of this fiscal. “India’s growth is well below trend, irrespective of the over 7 per cent growth reported as per the national accounts data,” Deutsche Bank said in a research note. According to data of the Central Statistics Office (CSO), the economy is expected to grow at a 5-year high of 7.6 per cent in the current fiscal. The CSO data showed that the economy grew at 7.6 per cent in the first quarter, 7.7 per cent in second and 7.3 per cent in third. “We find it difficult to make sense of the current GDP data, with ground reality and high frequency indicators such as IP, PMI, CMIE capex, business and employment surveys indicating a much weaker cycle,” the report added. It noted that though growth momentum has slowed in the second half of this fiscal year and that investment recovery remains anemic, support to growth is mainly coming from private consumption and this is likely to be the growth driver going forward as well. “We maintain our GVA growth forecast for FY16 at 7.3 per cent, while raising the GDP forecast to 7.5 per cent…,” the report said, adding “we are however not changing our FY17 GDP growth forecast of 7.5 per cent, which in our view is subject to downside risks.” The global brokerage firm said RBI will consider all the nuances in the national accounts data and will find enough justification to cut rates, once the Union Budget is out of the way in end-February.
SOURCE: The Financial Express
To enhance the ease of business, the Jawaharlal Nehru Port Trust (JNPT) has decided to allow 143 importers to transport containers directly from the port to company warehouses, bypassing 33 Container Freight Stations. This will reduce the delivery time of containers from about 10 days to 1.4 days. Reduction of the process time will help companies save Rs. 4,000 per container a day. According to a rough estimate, the logistics cost per container will come down by about Rs. 1 lakh a year.
Customs clearance
The process does not mean that Customs department formalities will be evaded. On the contrary, the department will issue a 12-month Accredited Client Programmer (ACP) waiver to those companies, who have a clean reputation and impeccable track record. The JNPT is calling this programme Direct Port Delivery (DPD) and 14 companies are already enjoying this facility. Now it has been extended to 143 companies, whose credentials have been vetted by the Customs department and have been certified under the ACP. “We want to cut short this process of delivering the container as the delays in delivery of the container adds to logistics costs. If we have to be competitive in trade, the time and cost of such transactions will have to be reduced,” Chairman JNPT, Anil Diggikar said while addressing the media on Wednesday.
Long-pending demand
He said that the decision is in line with Ministry of Shipping policy towards ease of doing business. With this, a long-pending demand of the trade bodies has been fulfilled. JNPT Deputy Chairman Neeraj Bansal added that it is an attempt to reduce red tape, bribes and mounds of paperwork.
SOURCE: The Hindu Business Line
Industrial growth in the traditionally weaker states of Bihar, Odisha and Chattisgarh in 2013-14 dwarfed that of their more developed counterparts, in a year when the econiomy had to cope with the euro crisis and its effects on Indian industry. Data released as part of the Annual Survey of Industries (ASI) on Tuesday showed the three states had grown the most industrially. Overall industrial growth, measured in gross value addition, was 7.2 per cent in FY14 as compared to 11.3 per cent in FY13. Bihar at 97.5 per cent had the highest growth but measured from the country's steepest decline the previous year. Odisha grew 61 per cent and Chhattisgarh by 55 per cent. In comparison, it was 5.9 per cent in Gujarat and in Karnataka and 1.1 per cent in Rajasthan, all three being outside the top 10 in industrial growth.
Overall, the measure showed a fall in eight states, Goa's being the steepest at 26 per cent. Andhra Pradesh and Madhya Pradesh's declined by 13.5 per cent and 12.1 per cent, respectively. Nagaland (-10.2 per cent), Haryana (-1.8 per cent), Delhi (-1 per cent), Tamil Nadu (-0.9 per cent) and Tripura (-0.4 per cent) also contracted. As for industrial investments, 17 states reported a decline. Industrial growth in FY14 was higher in poorer states As measured by gross capital formation, Assam's was the highest at 145 per cent, followed by Kerala at 117 per cent. Tripura was third at 48 per cent. Meghalaya had the sharpest drop at minus 66 per cent, followed by Sikkim (-58), Haryana (-46.8) and UP (-45.4). Karnataka, Punjab and Rajasthan also reported a dip.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 27.72 per barrel (bbl) on 10.02.2016. The price was US$ 31.06 per bbl on previous publishing day of 05.02.2016. (Since Oman & Dubai prices were not available due to holiday in Singapore on 8th & 9th Feb, 2016 the price of Indian Basket Crude oil could not be derived. Therefore, price of Indian basket as of 5th Feb, 2016 were considered.)
In rupee terms, the price of Indian Basket decreased to Rs 1881.77 per bbl on 10.02.2016 as compared to Rs 2116.83 per bbl on 09.02.2016. Rupee closed stronger at Rs 67.88 per US$ on 10.02.2016 as against Rs 68.16 per US$ on 09.02.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 10, 2016 (Previous trading day i.e. 09.02.2016) |
Pricing Fortnight for 01.02.2016 (14 Jan to 27 Jan, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
27.72 (31.06) |
26.05 |
|
(Rs/bbl |
1881.77 (2116.83) |
1763.06 |
|
|
Exchange Rate |
(Rs/$) |
67.88 (68.16) |
67.68 |
SOURCE: PIB
The argument is frequently made that Egypt would gain little from currency devaluation because it has almost nothing to export – nobody wants to buy its products. Any devaluation would do little more than widen the current account deficit, the argument goes. Yet quite to the contrary, at least one Egyptian industry, textiles, has proven that it is more than up to the task, if only given the chance. In the decade before Egypt’s 2011 uprising, cotton textile exports increased by about 19 per cent a year on average, having surged from US$108.9 million in 2001-02 to $628.0m by 2010-11, according to central bank statistics. Exports of ready-made clothes climbed almost as quickly, jumping by a sizzling 17.6 per cent a year, from $187.2m to $771.2m. Alas, since the uprising this growth has come to halt, with exports of cotton textiles increasing by only 3.1 per cent annually in the four years to June 2015, and ready-made clothes by only 1.4 per cent.
Textile exports actually contracted in the two years after July 2013, when Mohammed Morsi was removed from power and a degree of political stability was restored. Many smaller companies have shut down entirely. To be sure, the overvalued pound has not caused all the problems, says Mohamed Kassem, the chairman of the Ready Made Garments Export Council of Egypt. The government raised the prices of electricity and natural gas in July 2014, with those paid by industry rising especially sharply. Labour and water bills also increased, and because of security concerns the government has made it harder to import many chemicals. All this has happened at a time when textile prices were falling around the world. The biggest problem remains that the strong pound is pricing Egyptian textiles out of the export market. “The exchange rate is at the top of the list,” Mr Kassem says.
Although the Egyptian pound was devalued against the dollar several times last year, since mid-2013 it has actually strengthened against the euro, the currency of one of Egypt’s main export markets. Meanwhile, the currencies of many of Egypt’s competitors have weakened, making their products more attractive. The exchange rate is crucial for the success of a project that Mr Kassem is pushing forward: the construction of a new textile city near Minya, 200 kilometres south of Cairo. About 1.3 million square metres have been set aside for the city, which is to be a joint venture with the China National Textile and Apparel Council. A memorandum of understanding with the Chinese was signed last month. It is to be a completely private investment, Chinese and Egyptian. The investors plan a textile hub to supply yarns and fabric to garment makers across Africa, where the industry is still in its infancy. They plan to focus on spinning and weaving as well as on dyeing and finishing. They chose Minya with an eye towards its proximity to the Red Sea, for exports to Sub-Saharan Africa, the Mediterranean and North Africa. This would enable Egyptian producers to provide the speed to market crucial for garment makers.
Egypt has a strong garment industry, says Mr Kassem, but its yarns and fabric industries are not as well established. Worldwide, the textile industry is worth $450 billion. North Africa, including Egypt, exports $10bn in textiles and Sub-Saharan Africa, $2bn. All are dependent on imported yarn and fabric. African textiles are allowed duty-free entrance into the United States through the African Growth and Opportunity Act, signed in 2000. In the next five years, exports from the continent could exceed $20bn a year, which translates into huge demand for yarn and fabric, Mr Kassem says. There is a ready pool of labour in Minya, plus it is part of the government’s plan to develop Upper Egypt. The traditional textile centre of Mahalla on the Nile delta was ruled out mainly for lack of land. The investors are waiting for the government to deliver the land and provide infrastructure and training support. Eventually they plan a series of such textile cities all the way up the Nile until Aswan. The textile city could become a significant source of foreign currency for Egypt and provide jobs in a particularly depressed part of the country. But the speed of its implementation, as well as the success of textile exporters in the rest of Egypt, will be closely tied to a currency that does not price its manufacturers out of the market.
SOURCE: The National Egypt
The economic slowdown in in 2015 in Indonesia is still having a painful impact on several industries. One of these is the textile and textile products sector (TPT). The performance of this industry is expected to remain sluggish throughout 2016 due to a lack of positive sentiment that might lift it out of its mire. A global recovery is still elusive along with a domestic economy that has yet to any show sign of improvement. The chairman of the Indonesian Textile Association (API), Ade Sudrajat, is pessimistic about the TPT sector seeing any increased growth in the next year. The performance of the TPT sector as of October 2015 was far from satisfactory. The Gross Domestic Product (GDP) of the sector has suffered a contraction, or negative growth of 6.1 percent compared to the same period the previous year. This figure represents a worse GDP growth rate than that of manufacturing industry as a whole, which stood at 4.3 percent, or the growth of Indonesia’s total GDP of 4.7 percent. As to the global economic situation, the International Monetary Fund (IMF) has cut its forecast for world economic growth to 3.4 percent from 3.6 percent in 2016. Likewise with the US, economic growth of only 2.6 percent is expected. This affects the Indonesian TPT sector because Indonesian TPT exports are strongly influenced by global economic conditions, particularly those in the US and Europe which represent the sector’s largest markets. The share of Indonesian TPT exports to the US and Europe generally stand at 31 percent and 16 percent, respectively. This is far greater than exports to ASEAN and Japan, for example. In 2015, the value of TPT exports was estimated to reach US$12 billion, down from the previous year’s figure of $12.68 billion, a contraction of about 5.3 percent year-on-year (yoy). However, as of October last year, Indonesian TPT exports only amounted to $10.2 billion, about 77 percent of the target. Part of the reason for this is that Indonesian export products have to compete with their competitors’ products, especially garments from Vietnam, in the US and European markets.
In Vietnam, production costs are relatively low as they are not unduly burdened by labor costs, which remain fairly cheap. This contrasts somewhat with Indonesia at this time. In addition to the increased cost of raw materials in Southeast Asia’s largest economy, production costs are also burdened by the ever more expensive cost of labor. Add to this the weakening of the rupiah, and it is understandable that many companies — unable to withstand the pressure — have gone out of business. Increasingly high production costs have led to industries, in particular the textile industry, being forced to lay off their employees. For example, based on the observations of the API, the textile industry centered on four districts in the regency of Bandung retrenched by 6,000 workers during the period from January to May 2015. Imagine how many tens of thousands or even hundreds of thousands of workers would lose their jobs if such layoffs were to take place across the island of Java. According to the API, those industries that generally resort to provisional layoffs are downstream by nature. In addition, the level of competitiveness of Indonesian TPT products continues to decline. According to the central statistics agency (BPS) data, in 2014 alone there was a drop in the level of competitiveness of Indonesian TPT products in the world market of 1.3 percent. Vietnam, by contrast, saw its level of competitiveness increase by 1.8 percent yoy. Indonesia’s competitiveness decline occurred not only in the world market, but also in the US and European markets, which saw falls of 25 percent and 3 percent, respectively.
Trade Minister Thomas T. Lembong sees Vietnam as a threat in terms of it being Indonesia’s largest competitor in the textile and footwear sector. This is especially true since Vietnam has joined the Trans-Pacific Partnership (TPP). Competition with Vietnam, in the minister’s view, is becoming increasingly keen as the Vietnamese have also now completed negotiations for a free trade agreement (FTA) with the EU. This means that Vietnam will have access to the European market, which is larger even than that of the US, consisting as it does of more than 20 countries. Minister Lembong explained that through the TPP, its 12 member states, led by the US, could soon control 40 percent of the world market. Thus, it is no wonder that Indonesia is eager to join the TPP, which it is expected to do within the next two years.
For an alternative perspective, it is instructive to look to the Investment Coordinating Board (BKPM), which records investment plans, both foreign and domestic, in the textile sector. According to the BKPM, there was a significant increase in investment plans throughout 2015, leading to a positive assessment as to how this might encourage labor-intensive investment in 2016. As to the realization of investments across all textile sub-sectors during the first semester of 2015, positive growth was very much in evidence. For example, the textile fiber processing industry posted growth of 213 percent by as much as Rp 2.4 trillion (US$176 million) from 82 projects, the textile weaving industry posted growth of 613 percent amounting to Rp 163 billion from 25 projects, the garment industry recorded growth of 16 percent, by as much as Rp 941 billion and the clothing accessories industry recorded growth of 563 percent amounting to Rp 216 billion from 15 projects.
Investment plans, as recorded in the number of principle licenses obtained from the textile sector during 2015, were valued at Rp 13.1 trillion, up 68 percent over the previous year. According to the head of the BKPM, Franky Sibarani, this investment figure in the textile sector included plans for the employment of 101,000 workers. The realization of these investment plans is expected to contribute positively toward the creation of the 2 million jobs targeted by the government in 2016. Investment data that has been presented by the BKPM indicate that there is still hope for a recovery in the textile industry. However, the industry will recover only if accompanied by effort and support from the government such as national brand development and a logistics base for cotton, which is currently being developed to ensure the availability of the necessary raw materials, continued investment and industrial development will take place as further economic policy packages are rolled out. Moreover, industrial competitiveness as a whole is likely to strengthen, backed by declining gas, electricity and diesel prices. The government is also encouraging the improved performance of this industry, including by stepping up efforts to control imports and securing the domestic market through non-tariff policies. These policies include the compulsory application of Indonesian National Standards (SNI), the use of domestic products in the procurement of goods and services (P3DN), as well as the restructuring of machinery in the textile and footwear industry.
SOURCE: The Jakarta Post
The 15th International Textile Asia Trade Fair to be held in Karachi will be inaugurated by Federal Minister for Commerce Engr. Khurram Dastgir Khan. The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) is organizing this mega textile trade fair in collaboration with Ecommerce Gateway Pakistan. More than 65,000 trade and corporate visitors are expected to visit the textile trade fair during three days. The trade fair will have more than 550 International Brands displaying their products in over 700 Booths and over 500 foreign delegates mainly from Austria, China, Czech Republic, France, Germany, India, Italy,Korea, Taiwan, Turkey, UK, USA etc. will grace the event. The exhibition is aimed at focusing the immense buying and selling potential of textile and garment machinery, accessories, raw material supplies, chemicals and allied services under one roof.
PRGMEA Central chairman, Shaikh Mohammad Shafiq, said that thee-day mega event is being held to boost export of value-added sector by bringing latest garment technology at door step and this activity is being done to facilitate the exporters of not only Karachi but all over Pakistan. The International Textile Asia Trade Show is one of the most and enduring events to be held for the 15th successive year. The trade fair is being organized at the most opportune time when the government is looking forward to modernize and upgrade the textile sector of the country for better quality products and enhanced productivity. The International trade fair will run from March 19 to 11, 2016 at Karachi Expo Centre.
SOURCE: Yarns&Fibers
National Assembly Standing Committee on Textile Industry Wednesday recommended establishing textile universities in southern Punjab and northern Sindh. The meeting, chaired by Sardar Muhammad Shafqat Hayat Khan, observed that textile education institutes should be built in underdeveloped areas of the country on priority. The committee, during its discussion on the issue of Karachi Garment City Land, showed its displeasure over the absence of the Deputy Commissioner, Malir, Karachi. Committee observed that the increase in the cost was primarily due to unnecessary delay in the completion of the project. A Sub-Committee was constituted by Standing Committee under the convener-ship of Rashecd Ahmed Godil, MNA, to further discuss the said issue. The discussion on finalization of the budgetary proposals relating to PSDP for financial year 2016-17 was postponed by the committee till its next meeting. However, the committee directed all the heads of projects mentioned in the budgetary proposals to make them self available to brief the committee in the next scheduled meeting. Federal Secretary for Textile Ministry, Amir M Khan Marwat and Director Research and Development Cell, Kanwar Usman briefed the committee about the ongoing and future projects. The meeting was attended by lawmakers Khawaja Ghulam Rasool Koreja, Sardar Muhammad Shafqat Hayal Khan, Rana Umer Nazir Khan, Haji Muhammad Akram Ansari, Malik Muhammad Uzair Khan, Mian Shahid Hussain Khan Bhatti, Malik Shakir Bashir Awan, Abdul Rasheed Godil, and Jamshed Ahmed Dasti.
SOURCE: The Nation
Boosting trade ties by ramping up UAE's investment in India and stepping up defence and security cooperation in the wake of rising threat of ISIS are set to be the major focus of talks between Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister Narendra Modi tomorrow. Economy of UAE, one of the leading producers of oil, has been hit hard by falling crude prices and it is expected that the Gulf nation would like to invest significantly in India's energy and infrastructure sectors from its sovereign wealth fund of around USD 800 billion. India has been eying the fund, being managed by the Abu Dhabi Investment Authority, for its infrastructure sector including for railways, ports and roads. Joint production of defence equipment is another key area where both the countries are working hard. Under the initiative, UAE may make investment for manufacturing such equipment in India and get the products' supply.
Strengthening existing cooperation in information sharing and counter-terrorism will be another focus area in view of rising threat of ISIS. UAE has deported about a dozen Indians with suspected links to the terror group. "The security cooperation between the two countries has been exemplary. There is concrete meeting of minds on the issue," said Anil Wadhwa, Secretary (East) in the Ministry of External Affairs. Asked whether India will raise the issue of attaching properties of wanted terrorist Dawood Ibrahim in UAE, Wadhwa refused to talk about any specific individual maintaining these are "ongoing processes". Al Nahyan is accompanied by a power-packed delegation for his three-day trip till February 12 which includes several top ministers and over 100 business tycoons and CEOs of top companies. President Pranab Mukherjee will host a private lunch for Al Nahyan tomorrow, in a reflection of importance the government has accorded to his visit. Wadhwa said he does not recall such gesture by the President in recent times. The Crown Prince will also have a working dinner with Modi tomorrow.
A number of pacts in a wide range of sectors like nuclear energy, oil, IT, aerospace and railways are expected to be signed tomorrow after talks between Modi and Al Nahyan, an influential leader in the UAE who is also the country's Deputy Supreme Commander of the armed forces. After visit here of Emir of Qatar Sheikh Tamim bin Hamad Al Thani in March last year, Al Nahyan is another important leader to come here from Gulf region, home to 7 million Indians who are a major source of remittances. It also fulfills 60 per cent of India's energy needs. "The visit takes place after we have decided to elevate our relationship to comprehensive strategic partnership during our Prime Minister's visit to UAE in August last year and this will provide an opportunity to have detailed discussions to consolidate the domains of existing partnership," said Wadhwa. He said areas of cooperation will include production of defence equipment in India, strategic partnership in security and counter-terrorism and cooperation in nuclear and space sectors. Al Nahyan will travel to Mumbai on Friday where he will visit Bombay Stock Exchange and interact with select industry leaders before departing. Wadhwa said collaboration in counter-terrorism including information exchange and steps to ensure that youths do not get radicalised have been in place. A major focus of the visit by the UAE leader will be on significantly enhancing trade volume from current annual figure of USD 60 billion.
During Modi's visit to UAE, it was decided to increase the current volume of trade by 60 per cent in the next five years and Wadhwa said the two sides are drawing action plans to achieve that target. On the proposal that UAE would invest upto USD 75 billion dollars in India, Wadhwa called it an "aspirational figure" adding discussions were on for investment in diverse areas. India is UAE's number one trading partner while the Gulf nation is India's third largest trading partner after the US and China. UAE is India's second largest export destination. For India's energy security, UAE is an important country as it gets 9.38 per cent of total crude requirement from that country. The volume of supply in 2014-15, was 15.99 million metric tonnes. The two countries had already agreed to make bilateral investments in the petroleum sector and also take up joint projects in third country. On whether India will raise the issue of levying of taxes by UAE to offset impact of falling oil prices as its tax has hit Indian people also, Wadhwa said every country has to manage its economy and that it was an internal matter of UAE. But he said welfare of Indians usually comes up in the discussions and if the specific issue is mentioned, then it may talk about their difficulties. He said UAE has initiated a Mars mission for 2020 and India can assist that country. He said ISRO was willing to help UAE in the mission.
SOURCE: The Economic Times
A conference to promote Ethiopia's Textile and Garment Industry kicked off in Hilton Hotel, Addis Ababa on 8 February, 2016 under the theme "Towards Increasing Sustainability and Competitiveness in Ethiopia's textile and garment industry. The conference aims to help improve the competitiveness of the Ethiopian textile and garment industry as contributor to sustainable employment generation and economic development of the country and is expected to promote awareness on the importance of social and environmental standards. It is also expected to draw attention to key sustainability challenges within the Ethiopian textile and garment industry; and organize a continuous dialogue and joint action amongst stakeholders from the private, public and citizens sectors in Ethiopia. The conference comprised various sessions, including a discussions forum: "Inputs: sustainability and competitiveness from field to fashion", and a plenary session: "Practitioner perspectives on sustainability", and breakout sessions: "Social and environmental standards for increased competitiveness and best practices form Bangladesh" and "Training approaches for effective skill development". The conference would also focus on the opportunities and the way forward to improve the sustainability and competitiveness of the Ethiopian textile and garment industry. The conference organized by stakeholder government Ministry offices, including Ministry of Trade, Ethiopian textile Industry Development Institute, and GIZ was attended by senior government officials, leaders form Ethiopian and international textile and garment manufacturers, and professionals from partner organizations.
SOURCE: Yarns&Fibers
A $40 million spinning mill facility in Purwakarta, West Java, that is owned by Indorama Synthetics, Indonesia’s biggest producer of textile raw materials, was inaugurated on Wednesday (10/2), the country’s Investment Coordinating Board (BKPM) said in a statement. “Indorama’s expansion can support the government’s plan to reduce unemployment and improve the locals’ income in Purwakarta district, while also improving foreign exchange earnings from exports,” Franky Sibarani, BKPM chairman, said in a statement. Franky was there to witness the inauguration, the statement said. The Purwakarta mill is Indorama’s ninth plant in the archipelago nation, Franky said. The plant, which has a capacity to produce 10,800 metric tons of textile raw material per annum, is situated on a 50-hectare plot land that has been owned by Indorama since 1997. Franky said the plant will provide 270 new jobs. According to the company’s website, Indorama Synthetics – controlled by Indian-born businessman Sri Prakash Lohia – has been listed on the Indonesia Stock Exchange since 1990. New investment in the textile and textile products industry last year stood at Rp 8.3 trillion, up 35.7 percent compared to a year earlier. New local investment in the sector was recorded at Rp 2.7 trillion while foreign investment contributed Rp 5.4 trillion, BKPM said.
SOURCE: The Jakarta Globe
