$1-trillion target realisable by 2030; hospitality, education among high-potential areas Commerce and industry minister Piyush Goyal on Tuesday said India will realise by 2030 a lofty services export target of $1 trillion, nearly five times of what it exported last fiscal. For this to materialise, he said, the world’s seventh-largest services exporter needs to boost opportunities in high-growth segments beyond the dominant information technology and IT-enabled services (ITeS), and improve focus on promising areas like higher education, hospitality and medical tourism. To support the services sector, the government has been actively pursuing market access opportunities via free-trade agreements with key economies (including the UK, the EU, Australia and the UAE) and is working on a programme that could replace the Service Exports from India Scheme in its current form, he added. Sectors like tourism and hospitality, which were battered by the pandemic, are showing signs of revival, Goyal added. The commerce ministry has also set an ambitious merchandise export target of $1 trillion by FY28, against $291 billion last fiscal. Surplus in services trade has long narrowed the often-huge deficit in India’s merchandise shipments. With renewed focus and targeted government intervention, services trade surplus could rise further from as much as $89 billion in FY21 and almost wipe out the deficit caused by merchandise exports, senior industry executives say. The services sector has also been the largest recipient of foreign direct investment, making up for 53% of the total inflows between 2000 and 2021. The optimism about meeting the targets comes at a time when advanced economies are witnessing a resurgence, spurring demand for both goods and services. At the same time, Goyal exhorted the services industry to shun the crutches of government subsidy, saying past experiences show absence of dole-outs encourages firms to raise competitiveness. Also, the subsidy amount can be utilised for those who need it more. He was speaking at the Global Services Conclave 2021, organised by the Services Export Promotion Council (SEPC) in New Delhi. The government has announced that it will release `56,027 crore to clear all the pending dues owed to exporters of both goods and services until FY21 under various schemes. Of this, `10,002 crore is meant for services exporters. However, in January 2021, it replaced a WTO-incompatible incentive programme for merchandise exporters with a tax refund scheme for them. Outgoing SEPC chairman Maneck Davar said services exports are targeted to rise to a record $240 billion this fiscal. Stressing that India has transformed from being the ‘Back office’ of the world to its ‘Brain office’, Goyal said while IT and ITeS have long dominated services exports, it is time the country ramped us focus on other sectors. For instance, students from the developed nations, including the US and Canada, prefer India for heritage, art and culture studies. The services sector is the biggest driver of India’s economic growth. It also provides employment to nearly 2.6 crore people and contributes approximately 40% to India’s overall exports.
Source: Financial Express
Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, said on Tuesday that at present India is poised to achieve services export target of $1 trillion by 2030. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, said on Tuesday that at present India is poised to achieve services export target of $1 trillion by 2030. He further added that the services are boosting India’s transition from an Assembly economy to a Knowledge based economy. While addressing the gathering at the at the 'Services Export Promotion Council- Global Services Conclave 2021' in New Delhi, Goyal pointed out that services are a key driver of India’s economic growth. He also claimed that India has transformed from being the ‘Back office’ to the ‘Brain office’ of the world. As per the press release from the Ministry of Commerce and Industry, the theme of the Global Services Conclave 2021 was India Serves: Exploring Potential Growth Sectors Beyond IT/ITes'. Goyal informed that services sector provides employment to nearly 2.6 crore people and contributes approximately 40 per cent to India’s total global exports. He further added that Services trade surplus was $89 billion in FY 2020-21 and it has been the largest FDI recipient (53 per cent of FDI inflows 2000-2021). Lauding India's commitment to enable ‘work from Home’ during the pandemic, Goyal said that while services trade remained depressed in other countries, India’s services sector showed immense resilience ."Sectors like tourism, hospitality, etc. which suffered due to COVID-19, showing revival signs" he added. The minister also pointed out that in 2020, India became the 7th largest services exporter in the world, moving up the ladder by two positions. Services PMI rose to a decade high of 58.4 in October 2021, he said. Again, emphasizing on the fact that India had the potential to become the top services exporter in the world, Goyal said that Services is boosting India’s transition from an Assembly economy to a Knowledge based economy. Observing that India has transformed from being the ‘Back office’ to the ‘Brain office’ of the world, the Minister said that Microsoft, Google and other companies call India “A home away from home” as the have the biggest offices outside US in India. As per Goyal, India’s Services export largely comprise of IT/ITes and stressed the need to focus on other potential growth sectors. India’s IT (Inherent Talent) will help expand reach of India’s service sector far beyond the IT services, he said. The Minister listed certain crucial sectors which can catapult India’s services sector on a high growth trajectory such as higher Education. He spoke of the massive potential for online training courses, language courses, the horizons of which have been further expanded by the New Education Policy. Speaking of the Tourism and Hospitality sector, Goyal said that in FY20, tourism sector accounted for 39 million jobs, 8 per cent of the total employment. He also outlined possible new initiatives to boost tourism sector such as development of new innovative bundle tour packages and said that hospitality industry has big potential and many developed countries can take a lesson or two from India. In the field of healthcare, the Minister said that India is the 2nd largest supplier of nurses to OECD, Gulf countries and Asian countries like Singapore and Malaysia. He spoke of the need to establish more nursing institutions in other states. Piyush Goyal said that the Government as a facilitator and enabler helped Indian Services to grow and touch lives across the globe. He emphasized that Zero Government interference has enabled IT sector to excel. He appreciated the sector for not pursing incentives but standing on its competitive strength.
Source: Zeebiz
The process of appointing a consultant got stuck following cancellation of bids on technical grounds in March. With the appointments set to take place now, the deadline of 2025 may also be amended. The Uttar Pradesh government’s promise in 2020 to make the economy of the state worth a trillion dollars suffered major blows due to the pandemic. Now, the government is likely to re-initiate the process of appointing a consultant to work out a roadmap to accomplish the target. The process of appointing a consultant got stuck following cancellation of bids on technical grounds in March. With the appointments set to take place now, the deadline of 2025 may also be amended. “The decision to restart the process has been taken at the highest level. We will follow up once it is conveyed to us,” said a senior state government officer. PM Narendra Modi had floated the idea of making Uttar Pradesh a trillion-dollar economy at the UP Investors Summit 2018. CM Yogi Adityanath and his team started working on it and invited suggestions from leading financial institutions. In June last year, the state floated bids for the appointment of a consultant. Bidders were asked to submit documents by October 9, 2020. Eight bids were received, including one from a premier management institute. Four qualified for the technical round and their bids were opened in November. The bids were cancelled soon after.
Previous regimes in adityanath’s line of fire LUCKNOW: Raising the issue of cow protection in Badaun district of western UP, CM Yogi Adityanath blamed the previous regimes for patronising illegal slaughterhouses and allowing smuggling of cattle. “Cow smuggling has always been a major issue in Uttar Pradesh. Cattle smuggling and illegal slaughterhouses were the hallmarks of the previous governments. When we came, all illegal slaughterhouses were closed to restrict cattle smuggling completely. We worked for cow protection,” said Yogi.
Source: New Indian Express
There are early signs that India may be recalibrating its approach towards PTA negotiations. The direction in which its trade policy tilts will determine the success of India’s plans for export-led economic growth. It will also influence India’s positions on emerging global trade issues. India has recently reaffirmed its commitment to trade multilateralism with the World Trade Organisation (WTO) at its centre. Parallelly, India has renewed its Preferential Trade Agreement (PTA) negotiations with many countries with vigour. While it has maintained certain long-held positions at the WTO, there are early signs that India may be recalibrating its approach towards PTA negotiations. At the WTO, India is simultaneously contesting certain developments while taking initiatives and demonstrating leadership in other areas. India is opposing the inclusion of new rules through non-consensus based instruments such as the Joint Statement Initiatives. It is also challenging the proponents who seek erosion of Special and Differential Treatment (SDT) and reform of the principle of self-declaration of development status. At the same time, India has taken the lead in seeking a Trade-Related Aspects of Intellectual Property Rights (TRIPs) waiver for Covid-19 related vaccines and medical equipment. It is at the forefront of efforts towards finding a permanent solution on public stockholding for food security purposes at the WTO Committee on Agriculture in Special Session. In the fisheries subsidies negotiations, India is pressing for effective SDT. On the bilateral front, India has recently begun/resumed PTA negotiations with various countries. A combination of reasons seems to have driven this. First, a focus on exportoriented economic growth, with the government setting ambitious targets for goods and services exports. This indicates signs of a more offensive strategy focusing on Indian export potential, rather than a defensive approach prioritising protection of domestic industry from import competition. Second, the missed chance to get preferential access for Indian exports subsequent to India’s unwise decision to stay out of the Regional Comprehensive Economic Partnership (RCEP). Third, WTO multilateral negotiations are stalled and plurilateral negotiations (which India so far contests) are more focused on regulatory issues rather than core trade concerns. All these reasons have led to India making a renewed push for pursuing trade liberalisation on preferential basis through the PTA route. How does India’s engagement at WTO negotiations square with its recent trade engagements bilaterally? The example of trade and environment talks may be pertinent here. At the WTO, there are Trade and Environmental Sustainability Structured Discussions (TESSD) taking place, as a means to complement the work of the Committee on Trade and Environment. The focus of these discussions is on trade and environmental sustainability. India was not a participant in the 2020 Communication on Trade and Environmental Sustainability where the TESSD were launched. On the other hand, recent news reports have indicated that India may be agreeable to incorporating chapters on trade and sustainable development (TSD) in its proposed PTAs with the UK and EU. The TSD chapters of existing EU FTAs contain obligations on environmental and social concerns, including on climate policy. Although it remains to be seen how far India will be willing to go on such trade and non-trade linkages in PTA negotiations, it does mark a shift in its approach. India has traditionally been wary of linking non-trade issues with trade, both bilaterally and multilaterally at the WTO. This is currently being witnessed in India’s opposition to attempts by some WTO members to link the negotiations on fisheries subsidies with forced labour concerns. What then does this shift indicate? It perhaps reveals a greater degree of pragmatism on the part of Indian trade negotiators. There seems to be an acceptance that going forward, there will inevitably be a greater role of certain issues in trade negotiations. These include environmental and sustainability concerns, which are transitioning from “non-trade” to “trade-related” issues. There is an ever-increasing linkage of trade with such areas, given the nature of problems of global commons the world is confronting today. Avoiding engagement on these issues at the WTO does not mean that they will not show up elsewhere in bilateral and regional settings. In this context, a degree of pragmatism may help align negotiation outcomes with Indian trade policy goals. At the same time, India should carefully assess the implications of its stance on such “trade-related” issues in bilateral settings for the positions it will take multilaterally. Additionally, India must remain cautious of not over-committing to onerous and sweeping new rules on WTO-plus matters in its zeal for early finalisation of PTAs. India’s positions on issues like trade and sustainable development in upcoming PTA negotiations will be valuable pointers to its approach on trade policy going forward. Overall, India is simultaneously pursuing export-led economic growth and greater self-reliance, committing to multilateralism and renewing its focus on bilateralism. While there are apparent contradictions here, there is also space for convergence. Notably, India is not unique in this attempt to straddle multiple trade policy paths. The United States has emphasised the role of the WTO as a force for good, but is simultaneously focusing on a worker-centric trade policy at home. The EU’s new mantra is “open strategic autonomy”, including a trade policy which enhances the EU’s trade enforcement powers and integrates EU values such as sustainable development. There are early signs that India may be recalibrating its approach towards PTA negotiations. The direction in which its trade policy tilts will determine the success of India’s plans for export-led economic growth. It will also influence India’s positions on emerging global trade issues.
Source: Economic Times
MSME manufacturing firms have been imperative to the growth of the Indian economy. MSME manufacturing firms have been imperative to the growth of the Indian economy. These small to medium sized ventures have always contributed largely to the country’s GDP, hence contributing to different aspects of its development. The Indian MSME sector contributes to about 29% towards the GDP through its national and international trade. As per the MSME Ministry data, as of May 16, 2021, India has approximately 6.3 crore MSMEs (including both service and manufacturing firms). It is to be noted that this sector still has a lot of unexplored territories for growth. It won’t be wrong to say that with so much of growth potential, emphasising on the development of MSME manufacturing firms can work as a long-term development tool for India. Ronak Chiripal, CEO, Nandan Terry explains why emphasis on manufacturing firms in MSME sector is imperative to transform Indian economy. Talking about low capita requirements, Ronak Chiripal said, "One of the plus points of the MSME manufacturing units is their low capital-intensive setups. These organisational units work with the man power and raw material which are easily available in the particular geographical regions. Such set ups can also absorb semi-skilled and unskilled graduates in their work force. Thus, solving the issues like unemployment, seasonal unemployment and disguised unemployment for the youth of the country. In short MSME units operate on less business overheads." Chiripal adds, "Another edge that the MSME manufacturing businesses have over the other businesses is its fast output. With ready availability of labour and a small managerial hierarchy, decisions can be taken and implemented faster than the organisational units with large structures. With optimal output in less time, it further reduces the cost of production." Explaining Increased Per capita Income benefits, Chiripal said, "The MSME manufacturing sectors which gives livelihood to so many families are a driving factor for the per capita income of the country. With more MSMEs more and more household’s per capita income increases which leads to general increase of the lifestyle and overall development hit by COVID 19, India just like other countries would like to depend less and less on exports. In such changing scenarios MSME manufacturing firms can prove to be the pillars of the changing economy." "As per a study by the Centre for Civil Society, the manufacturing sector among MSMEs, which is a little larger than the services sector, constitutes 90% of the total industrial units that spread all over India. Only 55% of the total MSMEs units are located in urban areas rest 45% of the units are located in rural areas of states like Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal etc. This leads to an equitable distribution of national income, poverty alleviation and inclusive economic growth. Thus, growth in MSMEs can surely predict an increased GDP of the country," he added. Further, he says, "All over the world small and medium enterprises have always been considered the engines of growth. The advantage of bringing ahead the latent entrepreneur talent and providing opportunity to different sectors of the society, is something that is key to only MSMEs. Also, the young entrepreneur talent of the country is keen on making digital deals. After major events such as demonetisation and the current pandemic there is a rise in digital transactions. According, to a survey by web hosting solutions provider, Bluehost, Indian Micro, Small and Medium Enterprises (MSMEs) are prioritising payments digitally over cash. The survey further revealed that out of 400 MSMEs who participated in the survey, 72 percent transacted digitally as compared to 28 percent who chose cash. This is one such sphere which can help the youth channelise the country’s resources towards a common goal of growth." "The rise in demand of machinery and raw materials for setting up MSME units, leads to not just the B2C trade but also B2B trade. This leads to inter industry trade generation too. More production by MSMEs will lead to more demand of manufacturing machinery. Which further requires large scale industries for production of machinery? Thus, helping the infrastructure grow. It won’t be wrong to say that focussing on the development of MSME manufacturing firms will not just help in the economic growth but will also accelerate the rate of its growth," Chiripal concluded explaining Infrastructure Development.
Source: Zeebiz
About 59,000 tonnes of clothing arrive each year at the Iquique port in Chile's Alto Hospicio free zone A mountain of discarded clothing, including Christmas sweaters and ski boots, cuts a strange sight in Chile's Atacama, the driest desert in the world, which is increasingly suffering from pollution created by fast fashion. The social impact of rampant consumerism in the clothing industry, such as child labor in factories or derisory wages, is well-known, but the disastrous effect on the environment is less publicised. Chile has long been a hub of secondhand and unsold clothing, made in China or Bangladesh and passing through Europe, Asia or the United States before arriving in Chile, where it is resold around Latin America. Some 59,000 tonnes of clothing arrive each year at the Iquique port in the Alto Hospicio free zone in northern Chile. Clothing merchants from the capital Santiago, 1,800 kilometers (1,100 miles) to the south, buy some, while much is smuggled out to other Latin American countries. But at least 39,000 tons that cannot be sold end up in rubbish dumps in the desert. "This clothing arrives from all over the world," Alex Carreno, a former employee in the port's import area, told AFP. "What is not sold to Santiago nor sent to other countries stays in the free zone" as no one pays the necessary tariffs to take it away. "The problem is that the clothing is not biodegradable and has chemical products, so it is not accepted in the municipal landfills," said Franklin Zepeda, the founder of EcoFibra, a company that makes insulation panels using discarded clothing. "I wanted to stop being the problem and start being the solution," he told AFP about the firm he created in 2018.
Water waste
According to a 2019 UN report, global clothing production doubled between 2000 and 2014, and the industry is "responsible for 20 percent of total water waste on a global level." To make a single pair of jeans requires 7,500 liters (2,000 gallons) of water. The same report said that clothing and footwear manufacturing contributes eight percent of global greenhouse gases, and that "every second, an amount of textiles equivalent to a garbage truck is buried or burnt." Whether the clothing piles are left out in the open or buried underground, they pollute the environment, releasing pollutants into the air or underground water channels. Clothing, either synthetic or treated with chemicals, can take 200 years to biodegrade and is as toxic as discarded tires or plastics. Not all the clothing goes to waste: some of the poorest people from this region of 300,000 inhabitants pick through the dumps to find things they need or can sell in their local neighborhood. Venezuelan migrants Sofia and Jenny, who crossed into Chile only a few days earlier on a 350-kilometer journey, search through a clothing pile as their babies crawl over it. The women are looking for "things for the cold," given the desert's nighttime temperatures drop to levels unheard of in their tropical homeland.
Changing attitudes
Chile, the richest country in South America, is known for the voracious consumerism of its inhabitants. Fast fashion advertising "has helped to convince us that clothing makes us more attractive, that it makes us stylish and even cures our anxiety," said Monica Zarini, who makes lamp shades, notebooks, containers and bags from recycled clothing. Things are changing, though, according to Rosario Hevia, who opened a store to recycle children's clothes before founding in 2019 Ecocitex, a company that creates yarn from pieces of discarded textiles and clothing in a poor state. The process uses neither water nor chemicals. "For many years we consumed, and no one seemed to care that more and more textile waste was being generated," she said. "But now, people are starting to question themselves."
Source: Live Mint
Indian textile industry is one of the biggest employing industry estimating employment opportunities of 45 million people nationwide. Indian textile industry is one of the biggest employing industry estimating employment opportunities of 45 million people nationwide. With a long stretch from farming to selling apparel to customers, the industry contributes a GDP of 2.3 percent as recorded by the National Accounts Statistics (2016-2017). The textile wholesale segment is a much-diversified sector because it involves several stages for final productions. The mix involves farming, cutting, dying, weaving, stitching, embroidery, etc. These are initiated at a wholesale segment and carried forward to the textile retail segment. The textile retail segment is one of the fastest running segments as you will find door-todoor outlets all over India, as India is the most popular textile hub globally. Expectations of Customers from Textile Industry Nowadays, consumers are becoming more knowledgeable in terms of textiles and clothing. The e-commerce market and the TV world have given people clothing goals. Considering this, you will find two types of people in the market. Firstly, there are people who shop directly from the readymade clothing stores. Secondly, you will find people who love to create their own designs. Hence, they end up at textile stores where they can do the match and mismatch of clothing. Consumers thus expect a lot of things from the textile industry for several reasons. One of the core expectations is how organic and natural the fabric is, in terms of comfort. The textile world is quite diverse, especially in India. Now people can compromise on the price when they are more inclined towards quality. This has increased pressure on the textile industry as quality highly matters. For instance, cotton, lycra, rayon, etc. are being more popular today because of their level of comfort. Another aspect is the colors and patterns obtained for a beautifully designed fabric. Plain colors, block print, screenprint, embroidery, and a lot more, the textiles offer all, considering consumer choices. Cities like Jaipur, Bikaner, Surat, etc. are accordingly secluded varying with the textile obtained here. Popular fashion designer Sabyasachi too stated, “his crore-worthy apparels are designed over textiles especially bought from a small retailer in Jaipur”. Climatic conditions and habitat make India diverse in terms of textile varieties. This has also led to increased consumer demand because premium quality lies right in the country.
Most Popular Textile Retail Segment
In India Cotton is the most commonly bought textile for both wholesale and retail segments. It is prominently known for its versatility for being used for making shirts, t-shirts, kurtas, shorts, and whatnot. The cotton and cotton blend textile retail segment also allows most innovations and designer ideas. Famous brands such as Beyoung prominently deal in apparel made in cotton because of the unbeatable comfort.
Rise In Textile Retail Segment In India
The textile retail segment in India is growing immensely. The scenario is estimated at $103.4 billion in 2020-21. It is further expected to take a rise to $190 billion by 2025-26. Cotton consumption across India is estimated to be $75 billion which is further segmented according to customer usage. $55 billion is used by people for making apparel in both wholesale and retail segments. $15 billion is used for technical textile consumption and an amount of $5 billion is dedicated to home furnishings. This cotton production is also used more for exports all across the world. Consumers today are expecting better fabrics that can cope up with the weather and provide utmost comfort. The textile retail segment is sticking to it to the fullest and has thus experienced immense growth. According to reports, the textile industry has valued exports worth $1,297.82 billion by August 2021 and is expected to rise by 55.62 percent over years. The growth rate of the textile retail segment expected growth of 8.7 percent from the fiscal year 2015 to 2020, which is expected to increase rapidly.
Source: Indian Retailer
STPF 2020-25 aims to enhance abilities of Pakistani enterprises in a bid to increase exports After a long period of remaining in papers for reviews and consultations, the federal cabinet on Tuesday has finally approved the country’s five year trade policy framework. Officials who spoke with Profit said that the Strategic Trade Policy Framework (STPF) 2020-25 aims to enhance the ability and capacity of Pakistani enterprises to produce, distribute and sell products and services as or more efficiently than their competitors. Under the policy, prepared after studying international demand trends and the capacity and capabilities of different export sectors of the country, various sectors including the traditional sectors like textile and apparel, leather, surgical instruments, sports goods, carpets, rice, cutlery and developmental sectors including engineering goods such as auto parts, pharmaceuticals, marble and minerals, processed food and beverages, footwear, gems and jewelry, chemicals, meat and poultry, fruits and vegetables, sea food and services sector would be focused on for the enhancement of exports. As per officials of the Ministry of Commerce, the main focus of the new trade policy will be on geographical and product diversification, manufacturing cost reduction through tariff rationalisation, pursuit of regional connectivity especially the look africa policy, enhancement of market access through FTA/PTA, and facilitation of logistics and tracking under the TIR as well as enhancement of regional connectivity for access to Central Asian Republics (CARS), Turkey and Iran to Europe and Russia. Article continues after this advertisement The STPF is dynamic in nature and it will be subject to course correction based on constant monitoring and evaluation. Furthermore, there shall be an institutionalised mechanism for robust monitoring and implementation of the policy in order to minimise policy implementation gaps, which have traditionally remained a weak link due to multi-organisational roles in the export ecosystem. In order to oversee the implementation of STPF 2020-25, a cross functional National Export Development Board (NEDB) has already been constituted under the chairmanship of the Prime Minister, composed of senior public sector officials of relevant organizations and private sector representatives. Regular meetings of the NEDB are being held in order to ensure the implementation of various policy measures. According to sources, the Ministry of Commerce foresees $ 40.27 billion exports by 2025 under the five year trade policy. Exports projections are based on a sound econometric partial equilibrium model. The explanatory variables used in the model include world GDP, Pakistan’s GDP and real effective exchange rate i.e. nominal exchange rate, domestic prices, Pakistan’s export prices and competitor’s exports prices. Moreover, three scenarios have been constructed to project future exports. The differences between the three scenarios were domestic prices which reflect the competitiveness and cost of doing business in the country. It is assumed that effective government interventions in terms of STPF, national tariff policy, trade facilitation, energy reforms, technology upgradation, easy financing and other on-going Ease of Doing Business (EoDB) initiatives will have an impact on competitiveness and thereby enhance exports. Earlier in March, when the trade policy was tabled at ECC of the Cabinet, it had deferred the consideration of the summary and directed the MoC to hold further consultations with relevant stakeholders. In the last decade, the Commerce Division had notified three STPFs: in 2009-12, 2012- 15, and 2015-18; however, none of these were successfully implemented to achieve the desired objectives due to various reasons. These policies also failed to alter the export paradigm over the period.
Source: Pakistan Today
An indefinite transport strike in Bangladesh that began on November 5 as part of reaction to a fuel-price hike has halted shipping services and has disrupted its foreign trade at a time when export and import both had began picking up after a long recession following the COVID-19 pandemic. The strike has hit the supply chain as imported raw materials remain stuck at the Chittagong Port. Around 5,000 trucks that transport imported goods from the seaport every day have stopped, a Bangladesh newspaper reported. Shipping executives say this will push up chartering cost by $20,000 a day. However, they will adjust the escalated cost with the freights and it is the people who will ultimately pay for that. “The transport strike is proving one of the most calamitous economic events as it has chain effect on all economic sectors," said Syed Mohammad Arif, president of Bangladesh Shipping Agents Association (BSAA), a trade- promotional body of around 500 shipping firms in Bangladesh. He feels a fresh shipping congestion will be created at the premier port if the standstill continues further.
Source: Fibre 2 Fashion
Both associations believe that sustainable product design, the support of circular models, the setting up of local recycling infrastructures and the development of European standards are key to more sustainable textiles. The European textile sector is predominantly made up of SMEs, among which 88.8% are micro enterprises (less than 10 employees). SMEs are active in all areas, ranging from manufacturing over trade and services. Their main focus is on high-quality and technical textiles, while in the textile services sector, they offer repair, rental, laundry and cleaning services. According to SMEunited and SBS, an effective EU strategy for sustainable textiles requires consideration of the entire value chain, in order to ensure that the textile industry recovers from the COVID-19 crisis in a sustainable and competitive way. Indeed, the value chain of production, the consumption of raw materials and the lifecycle of the textiles are decisive stages for the sustainability of the end product. Moreover, the greatest sustainability potential lies in the use cycle. The upcoming strategy should, therefore, include a clear plan to eliminate factors that prevent SMEs from moving to more sustainable business models. It should support businesses that already apply circular economy and provide helpful tools, conducive framework conditions and technical support for those who face difficulties with the implementation of greener business models. Sustainability criteria should already be applied during the product design stage to ensure that textile end products remain in use for a long time, can be recycled and thus reduce waste. European sustainability standards are essential to strengthen SMEs in the textile supply chain. "Common European standards would enable both manufacturers and service providers to offer products that can be universally used and applied by the industry. Standardisation of sustainability certificates and labels would also significantly reduce the burden on SMEs" declared Maitane Olabarria, SBS Director. Véronique Willems, SMEunited's Secretary General, pointed out: "Another important contribution to more sustainable textiles could be given by the setting up of local and regional networks in charge of collecting and recycling old textiles as well as by supporting the development of value chains which turn the reused and recycled textiles into new products." SMEunited, formerly known as UEAPME, is the association of crafts and SMEs in Europe with around 70 member organisations from over 30 European countries. SMEunited is a recognised employers' organisation and European Social Partner and acts on behalf of crafts and SMEs in the European Social Dialogue and in discussions with the EU institutions.
Source: EU Business
The ailing Nigerian textile industry needs urgent surgical operation and resolute determination of the federal government to bounce back to reckoning again. The textile industry in Nigeria is dying by installments. It bears the features of an industrial sector in its last gasp of steep decline. Its operators are concerned that the industry might go into extinction unless an urgent surgical operation is administered to resuscitate dying industry. THISDAY was told that in the mid-1980s and earlier part of the 1990s, the textile subsector of the Nigerian manufacturing sector had almost 175 textile mills operating in the country that employed as many as 500,000 workers. However, current realities are indicating that those good old days when the textile industry was the highest employer of labour in Nigeria after the government might have be lost irretrievably. Currently, the organised textile and garment sector have only 25 active textile mills and employed barely 25,000 workers. The Nigerian Textile Manufacturers Association (NTMA) said that these active mills are running below 25 per cent of their installed manufacturing capacity. Some of the textile mills operates in fits and starts while almost all of them have reduced their operations from three shifts per day to a single shift. THISDAY's investigation also revealed that the number of textile mills that were engaged in production of mosquito nets in Nigeria has gone down from 30 to just one. The rest ran into misfortune and closed shop. The investigation also revealed that no new investor came into the subsector for over a decade because of its parlous state. The NTMA told THISDAY that the cumulative effect of the poor state of the textile industry is that over 90 per cent of textile products on sale in Nigerian markets today were either imported legally or smuggled into the country. Yet, industry sources told THISDAY that, "on a replacement basis, the present installed textile manufacturing capacity in Nigeria represents a $3 billion investment." Moreover, "the Nigerian short-staple spinning installed capacity is ranked number two in Africa after Egypt with long staple spinning. However, the sector is largely over aged." The President of the NTMA, Mr. Folorunsho Daniyan, told THISDAY recently that the textile industry in Nigeria is in dire strait and needed urgent surgical operation to survive. Daniyan summed up the condition of the industry thus: "The state of the textile industry is an unfortunate one. To give you a graphic picture of where we are in today, I will take you back to where we were years ago. Then, we had about 175 factories but now we have 25 or less that are functioning and most of them are operating below 25 percent of their installed capacity utilisation. This has already painted the picture of where we are now; that the industry is in dire strait and needs serious surgical operation and assistance from the government and people of goodwill to bounce back." He traced the decline in the fortunes of the textile industry to the liberalisation of the import policy of the country to such an extent that anything comes in. This started with the implementation of the Structural Adjustment Programme (SAP) in 1986 by the former military ruler, President Ibrahim Babangida.
Trade liberalisation policy
The trade liberalisation policy has been sustained by successive regimes at a very high cost for the domestic textile manufacturers that could not compete with imported products from Asia and other parts of world due to the constraints in Nigerian business environment. "Gradually our capacity utilisation and operational factories started dwindling because of unfair competition from imports from Asia and other parts of the world. We produce fabrics that are 100 per cent cottons, at an average cost of N3000, N4000 per six yards. But synthetic textile materials are coming in from Asia at N1000 per six yards. So, there is no competition. So, it is a big problem. So, we need the government, especially the Nigerian Customs Service (NCS) and the Standard Organisation of Nigeria (SON) to wake up to their responsibilities and enforce the laws and standards that are applicable to the country's textile industries. "The SON gives us (local manufacturers) standards that we must meet, but it does not enforce these standards on imported textile materials. So, there is some double standard in the whole thing," Daniyan said. The NTMA recently listed some of the constraints hindering the growth of the textile industry in Nigeria. It said: "When benchmarking a number of Nigerian input cost factors with a panel of countries with which Nigeria competes, it is evident that Nigeria has high cost for the most important inputs like cost of power/kwh, cost of water, cost of steam/kg, cost of labour, cost of interest on credit and age structure of the equipment installed in Nigeria." Other challenges besetting the textile industry in Nigeria, according to the NTMA, smuggling, influx of substandard textiles materials and thriving sale of "faked" patents of textile designs that belonged to Nigerian textile manufacturers. The association alleged that the Nigerian Customs Service (NCS) and the SON are often lethargic in dealing with smuggling and the sale of faked and substandard textile materials in Nigerian markets. The association is, therefore, urging the federal government to take similar measures that have worked effectively in other countries to curtail these illicit practices in Nigeria. "When the textile industry was dying in Ghana, the Ghanaian government set up a special task force to combat textile smuggling. The taskforce was made up of various agencies and its sole purpose was to combat smuggling of textile into Ghana. Now, the textile industry is on the rise again in Ghana," Daniyan said.
Impact of Smuggling
The association alleged that smugglers are having a field day in the Katunguri Market, Kano, where he claimed that not less than 20 truckloads of smuggled fabrics came into the market on daily basis without being challenged by the NCS. "Take a visit to Kano market and you will see that over 90 per cent of the African prints (Ankara materials) on sale in the state were smuggled. How do they get across the borders? The customs are paying lip service to its duties. We have made presentations to the comptroller general of NCS during a meeting in his office some years ago to draw his attention to these things. We also informed him that even some of our intellectual properties are being copied. He said that he would get in touch to us but nothing came out of it," he said. Daniyan stated that the fortunes of the subsector would grow by 30 per cent if smuggling could be brought down by just 10 per cent. He said: "The future of the Nigerian textile industry depends on the will power of the government to protect it. The potentials are here. The basic raw materials are here. Experienced workforce is here. The projection we have is that if smuggling is curtailed by as much as 10 per cent about 30 per cent of textile companies will come back to operation and capacity utilisation will go up. The fate of the industry is in the hand of government because if the government will breathe down on the NCS something will happen. "The federal government has taken some notable steps to alleviate the condition of the textile industry and enable then to sustain their production through the provision of several grants by the Central Bank of Nigeria (CBN) through the Bank of Industry (BOI).
Executive Order 003
Another major step taken by the government is the proclamation of the Executive Order 003 that mandate federal ministries, departments and agencies, to give precedent to made in Nigeria products in their procurement of goods and services. The NTMA argued that effective implementation of the order would help to stimulate national demand for local textile materials for the making of uniforms for the Nigerian military, para-military organisations, police, primary and secondary schools, nurses, etc. The order enjoined ministries, departments and agencies of the federal government to give precedent to locally made goods in their procurement of goods and services. But, "the fact is that none of the agencies has purchased a meter of cloth from the Nigerian textile manufacturers. It was only during the COVID-19 period that a little quantity was purchased from our members. Since then, nothing has been done. The NYSC was the only agency that tried to do something with us. Kenya did it and is not regretting today," Daniyan said. Few weeks ago, a committee of the Nigerian Senate was startled to discover that the federal government proposed in its 2022 national budget to borrow $200 million to import mosquito nets in order to fight malaria even though a textile mill that could produce the tent. The Managing Director of Rosies Textile Mill, Aba, Mr. Nnamdi Oji, told THISDAY that there is no need to import the mosquito nets, which could be supplied locally by his company. Oji said: "I have supplied to Global Fund. I have supplied for some World Bank projects. My product has World Health Organisation's certification. I'm also certified by the NAFDAC to produce net. I do not see why such order should not come to me to generate employment in the economy and increase my capacity to supply beyond Nigeria." However, all the agencies interviewed by THISDAY in the course of investigating this story claimed to have been implementing the EO 003. The Spokesman of the Nigeria Army, Brigadier General Nwachukwu, said: "For the past six years we have been procuring our uniforms from within the country. There are two major companies that we buy from. One of them is the Sunflag Textiles and the other is Wollen Synthetic. Beyond uniform, we are patronising Nigerian made armaments and vehicles." Ditto the NCS and the Nigerian Immigration Service, which claimed to be sourcing their uniforms from Nigerian producers. The NCS also pooh-poohed the allegation that smuggling of textiles is a booming business in any part of the country, particularly Kano.
NCS Denies Allegations
The Public Relations Officer of the NCS, Comptroller Joseph Attah, challenged those making the allegations to provide intelligence to the customs and see them swing into action. Director General of Nigeria Textile Manufacturers Association, Mr. Hamma A. Kwajaffa, has pleaded strongly that the federal government should allow members of the NTMA to enjoy the benefits of the sugar levy. He explained that, "this levy is development tax for local manufacturers on any imported textile material. The essence behind this levy is to enhance our competitiveness by using them to defray some of our overhead cost. "In 2016, the NBS statistics stated that Nigeria recorded $4 billion worth of imported fabrics into Nigeria. That gives us $400 million. That is good enough for us. But this development levy is nowhere to be found. The sugar sector is enjoying theirs but ours has become problematic to access. The facts remained that those goods that are coming into Nigeria are very cheap. We have porous borders in Nigeria that encourage smuggling. "As far as we are concerned, government has come up with lots of good policies that failed at their implementation stages. Our problem is actually in the implementation of government policies "Ogun is setting the right example by insisting that school uniforms must be supplied by local 'adire' makers." The SON has denied the allegation that it imposed double standards on the members of the NTMA. The Media Assistant to the director General of SON, Mr. Fashina Adebola, told THISDAY that the Nigerian Industrial Standard (NIS) is the basis for adjudging locally manufactured and imported products that are certified under the Mandatory Conformity Assessment Program (MANCAP) while imported products are certified under the SON Offshore Conformity Assessment Program (SONCAP). Adebola said that the two programs run under same criteria in line with the World Trade Organisation procedure to ensure fairness and a level playing field in international trade and commerce, adding that SON carries out enforcement on suspected substandard textiles based on information in spite of being absent from the ports of entry since 2011. He said: "We challenge the association to substantiate the claim. Most of the successful enforcement activities we have carried out particularly in warehouses are based on information received from stakeholders and patriots. We treat all information received in strict confidence and verify them using our established procedure. "SON ensures provision of stakeholders' and market driven standards developed with the active participation of relevant stakeholders and interested parties. SON provides concessions to local manufacturers for importation of raw materials and machinery. "SON mobilises Nigerian textile manufacturers to participate in development, review and adoption of international standards at regional, continental and global levels."
Source: All Africa
Large fashion brands are turning their backs on Asia. Italian fashion firm Benetton has moved more than 10% of its output from Bangladesh, Vietnam, China and India to European production locations this year, and more will follow. By the end of next year Benetton aims to have halved production in Asia, and instead, will manufacture more in Croatia, Serbia, Turkey, Egypt and Tunisia. This will bring more control of the production process and transport costs, which have gone through the roof over the past year CEO Massimo Renon recently told Reuters that shorter lead times and fewer supply chain snags in the Mediterranean region would make up for the 20% lower production costs in Vietnam or Bangladesh. Average lead times from Asia to Europe have risen from four-tofive months to seven-to-eight, he added. And Hugo Boss is also looking to shift more production from Asia to locations closer to final markets. This will allow it to react faster to emerging trends and give it more flexibility to cope with bottlenecks in the supply chain, it said. Some brands that produce chiefly in Asia have been stung by disruptions from recent Covid-19 outbreaks in the region. In September, Nike had to curtail its sales projections due to factory closures in Vietnam. And some have already shifted a large portion of their production. According to its 2020 annual report, Inditex, which owns fashion brand Zara, is now producing 53% of its output in Spain, Portugal, Morocco and Turkey. Lisa Morales-Hellebo, co-founder and general partner of Refashiond Ventures, an earlystage supply chain technology venture fund, sees a broad migration in fashion production. She said: “Everyone is starting to understand that our complex, globalised supply chains are increasingly fragile. “Consumers tend to take supply chains for granted, especially in America, where the concept of infinite optionality delivered to your door in minutes is becoming the norm. Since businesses can only make money when they have inventory, this is the single biggest driver for the push to re-shore and nearshore.” Logistics operators serving Mexico and Latin America have reported growing interest among global brands to move production there, in order to be closer to the North American market. Most brands are assuming that the lower cost of labour in Mexico and South America will translate into the most cost-efficient option for serving North American consumers, says Ms Morales, but she thinks manufacturing in the US could be a better strategy. Refashiond OS, which started out as the systems design, research and strategy consulting arm of Refashiond Ventures, is building automated on-demand apparel manufacturing at scale through a distributed, collaborative network of ‘microfactories’. “There are an increasing number of emerging fashion manufacturing companies looking to drive efficiencies through digitisation, cyber physical systems, robotics, small-batch and on-demand post-purchase manufacturing,” Ms Hellebo noted. This constitutes a paradigm shift in fashion production – from high-volume manufacturing with a high level of built-in redundancy to on-demand, post-purchase production. This shift cuts out the 30%-40% of over-production in the traditional model that translates into pure margin erosion, sunk cost and locked-up working capital, she explained. The flagship facility of the ‘Made in the USA’ venture will be in the New York metro area, close to midtown, with a target opening date of Q2 22. “We already have apparel cut-and-sew factory owners in key regions across the country that are interested in becoming licensed microfactory nodes in our network,” said Ms Morales,a dding that emerging and established brands have shown lively interest in the concept and it also has public support. “We have seen the biggest support for our microfactory nodes in Arizona, whose local administration is supporting the creation of an apparel manufacturing and textile innovation hub,” she said, adding that key relationships are in place for deployment across the US.
Source: The Load Star
Envoy laments lack of progress on joint chamber of commerce. Nigerian High Commissioner Mohammed Bello Abioye has said that an agreement was signed between Pakistan and Nigeria for setting up a joint chamber of commerce and industry in 2015 however no progress has been achieved in this regard to date. Exchanging views with businessmen during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Monday, he termed establishment of a joint chamber vital to improve trade and investment cooperation between the two countries. The envoy stated that lack of direct flights between the two nations was another obstacle impacting bilateral trade. “Commencement of direct flights will certainly facilitate trade and investment between the business communities of the two countries,” he said. Abioye added that Nigeria had a huge population and Pakistani businessmen and industrialists could establish their units or undertake joint ventures in the African nation. “We can become partners in progress which will deepen the trade ties.” Terming Karachi important headquarter of Sindh, he expressed eagerness to enhance ties with KCCI. He said that many commodities from Nigeria, particularly cotton and cocoa, could be provided to Pakistan. According to him, Nigerian cotton could be used by Pakistan’s textile sector to produce value added products. Welcoming the Nigerian High Commissioner, KCCI President Muhammad Idrees stated that Islamabad imported commodities worth $116.27 million from Nigeria in 2020, which was 58.4% lower than $279.74 million in 2019. On the other hand, exports to Nigeria stood at $29.97 million in 2020 which was 9.1% higher than $27.47 million in 2019, he said.
Source: Tribune
On Tuesday, Pakistan’s Ambassador to China, Moin ul Haque said that the bilateral trade volume between Pakistan and China and the Pakistani exports to China would set new records by the end of this year. “China is Pakistan’s largest trading partner besides being the second-largest export destination and this year especially despite the pandemic, our bilateral trade is growing a big percentage, especially the figures of this year,” he told China Global Television Network (CGTN) in an interview. He informed that in the first three quarters, the bilateral trade between the two countries has grown mostly by more than 60% and Pakistani exports to China have grown by 75%. “So, we are hoping that by the end of this year, both the bilateral trade volume and the Pakistani exports to China would have a record and unprecedented figures,” he added.” “The bilateral trade volume is US$ 20 billion but we are hoping that this year, it will touch $25 billion. Pakistan exports have been around US$ 1.8 billion, but this year, we are hoping that it will reach US$ 3 billion but still, we feel that we can double this number in the next four to five years,” he added. To further enhance Pakistani exports to China, he recommended that textile and sports goods are the strongest sectors in Pakistan and could play an important role. “Pakistan is one of the few countries which have whole value chain of the textile industry from weaving to finishing and textile products are very well known. Pakistan is the largest producer of footballs and Pakistani footballs have been officially used in the football world cups,” he added. About the role of the China International Import Expo to help promote the Pakistani market in China and the world, he said that during the last four years, CIIE has been a very important platform and it has given exposure to Pakistani traders and businessmen to showcase their products to the world’s largest market. Responding to a question regarding China’s role in further opening up for foreign investment in Pakistan, he said, “In the second phase of China-Pakistan Economic Corridor (CPEC), we have opened up the respective markets and deepen the access to our traders.” Now more than 1000 products enjoy of tariffs line which means that thousands of products enjoy duty-free access to each other market so it’s a big boost to bilateral trade between Pakistan and China, he added. Ambassador Haque remarked that in the future, Pakistan would like to add and expand the free trade agreements going into the services sector because services sectors for both Pakistan and China forms the major portion of the GDPs of the two countries. “Earlier, it used to be agriculture, industry, but now services sector is the backbone of the economy. So, we would like the services sectors to be added in our future negotiations with China,” he added. About further growth in China Pakistan bilateral economic and trade cooperation, he said that the most important part of phase two of CPEC covers areas of agriculture especially modernization of agriculture and science and technology in Pakistan. In the recently held meeting of the Joint Coordination Committee of CPEC, both the countries decided to establish a working group on Information Technology, Industry, industrialization cooperation besides setting up special economic zones across Pakistan “We are inviting Chinese investors and companies to set up their manufacturing plants in Pakistan,” he added.
Source: Daily Times
