The Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal has said, as per a recent CII-Ernst & Young report, India will be the next investment global hotspot. “We have the potential to attract an annual FDI in the range of $120- $160 billion by 2025. Last seven years we’ve seen a record FDI, each year breaking the previous record for 7 years in a row. And I do hope to see that continue looking at the major structural reforms, the fact that we have a proactive leader in Prime Minister Modi, willing to listen and willing to change with the changing times,” he said, addressing the 2nd edition of the CII National Conference on MNCs, 2021, through video conference today. Shri Goyal said global sentiments have changed from ‘Why India?’ to ‘Why Not India!’, and today ‘We must be in India!’ “There are more success stories here than anywhere in the world today, 71 unicorns. Naukri Jobspeak Index for Oct' 2021 reports a 43% growth in employment over the same month last year. Our Manufacturing PMI (is high) and Service PMI reached a decade high,” he said. Shri Goyal said Government has introduced several key policy and business reforms for improving the investment climate. “The closest and most recent decision like the privatization of Air India which was successfully bid by the Tata group, the removal of that very, very unfortunate Retrospective Tax which has, I believe, cost us dear in terms of investment climate for many years, the kind of reforms in Mining, in the Coal sector, ones that we are hoping to do in Power, the huge Renewable Energy growth story in India, all of these things, I think, encourage us to look for a brighter future,” he said. Shri Goyal said the National Single Window System (NSWS) has been launched to serve as a one-stop-shop for approvals and clearance needed by investors. “The portal hosts approvals across 18 Central departments and 9 States. Another 14 Central departments and 5 States will be added by December.” Shri Goyal said India has all the right ingredients for the Multi-National Corporations (MNCs) and can help MNCs become more competitive at global level. “Diverse business landscape, rule of law & transparent systems, skilled workforce & low labour cost, no forced technology transfers.” Encouraging the Indian MNCs to take ‘Brand India’ to the world and be ambassadors of India’s culture, quality and values, Shri Goyal said MNCs have been an integral part of India’s growth story and their contribution is immense. “Whether it’s in terms of building highly skilled managerial talent, whether it’s building good business practices or good manufacturing practices in India, whether it’s the good Corporate Social Responsibility and such social initiatives that are taken up by many of our MNCs. Whether it’s skill development, I think, a huge contribution by the MNCs when it comes to skill development in India, and all of these have had a multiplier effect on the economy,” he said. Shri Goyal stressed on promoting partnership between the Government and Industry. “This partnership is important more because in today’s time because it gives us ideas, it gives us thoughts, it gives us an opportunity to understand where you come from, what needs to be done and, I think, this partnership needs to be strengthened further as we go along.” Quoting Prime Minister Modi, “Good and smart governance is needed to bring reforms. The world is a witness to how India is writing a new chapter of governance”, Shri Goyal invited entrepreneurs to be a part of the unfolding India story
Source: PIB
Trade Promotion Council of India (TPCI) has signed a partnership with the Department of Economy and Business Development of the Government of Navarra, Spain, to give a boost to businesses in the tech, medical equipment, retail and e-commerce space. In a bid to push trade and investments and strengthen the Exim relationship with existing geographies, Trade Promotion Council of India (TPCI), under the aegis of the Ministry of Commerce and Industry, has signed a fresh partnership with the Department of Economy and Business Development of the Government of Navarra, Spain. The move will give a boost to businesses in the technology, medical equipment, retail and e-commerce space. “An MoU was signed by Sandip Das, Deputy Director General, TPCI and Izaskun Goñi, General Director of Business, Internationalisation and Work Policies, Gobierno de Navarra. Goñi, General Director of Business, Internationalisation and Work Policies, pointed out that this agreement is very relevant for the Government of Navarra as India is one of the priority international markets for Navarra. In the past few years, Navarra has strengthened its relationship with India through different businesses and institutional meetings. We hope that this Memorandum of Understanding with TPCI will boost the commercial relations between Navarra and India,” a press statement from TPCI said. Sandip Das, also added that “India is at the cusp of global attention because of its huge potential and right ecosystem for doing business. TPCI will work with the Government of Navarra for promotion of trade and investment, besides strengthening the bilateral and commercial relationship. This MoU will provide a platform for mutual promotion of business of both countries.” Spain is India’s seventh-largest trade partner in the European Union. Bilateral trade in 2020-21 stood at $4.7 billion, with exports from India to Spain at $3.2 billion and imports at $1.5 billion. India's top exports to Spain are organic chemicals, textile and garments (non-knitted), iron & steel, fuel and mineral oils, aluminium and articles made of it, manufactured leather and leather goods, marine products, garments (knitted), vehicles and automobiles, machines and mechanical appliances. Spain is the 15th largest investor in India with cumulative FDI stock of $1.43 billion (January 2000 to September 2019). There are nearly 250 Spanish companies in India, mainly in the food, beverages, chemicals, rubber products, plastic products, electrical material, electrical equipment, machinery and equipment, and motor vehicles space. There are nearly 40 Indian companies in Spain, mainly in software & IT services, pharmaceuticals, chemicals and logistics. India is among the top 30 investors in Spain globally and among the top five from Asia.
Source: CNBCTV18
Indian High Commissioner to Bangladesh Vikram K Doraiswami on Tuesday said that India would be very happy to have more trade with Bangladesh through easier and more simplified procedures. ‘We can expand trade by utilising land ports, railways and riverine routes improving infrastructures and facilities,’ he said while addressing a meeting in Rangpur as the chief guest. Rangpur Chamber of Commerce and Industry organised the meeting on ‘BangladeshIndia Bilateral Trade and Commerce Issues’ at RCCI auditorium in the metropolis. Senior vice-president of Federation of Bangladesh Chambers of Commerce and Industries and former President of Bangladesh Chamber of Commerce Mostafa Azad Chowdhury Babu was present as the guest of honour. Assistant High Commissioner of India in Rajshahi Sanjeev Kumar Bhati attended the meeting as the special guest while RCCI President Mostafa Sohrab Chowdhury Titu was in the chair. Mostafa Azad Chowdhury Babu presented a keynote paper on various issues, problems and obstacles to bilateral trade between Bangladesh and India at the event. Dinajpur Chamber President Reza Humayun Faruk Chowdhury Shamim, President of Burimari Land Port Importers’-Exporters’ Association and Clearing and Forwarding Agents’ Association Md Sayeduzzman and General Secretary of Sonahat Land Port Importers’-Exporters’ Association and Clearing and Forwarding Agents’ Association Abdur Razzaque talked about various obstacles to bilateral trade between Bangladesh and India. They said due to tariff and non-tariff barriers imposed by the Indian state governments concerned on major export products of Bangladesh, it was not possible to conduct the desired export activities in India. They requested the Indian High Commissioner to keep the Indian Customs Offices open from 7 am to 7 pm to facilitate the unloading of goods from trucks and create a conducive business environment at land ports in Rangpur division. The Indian High Commissioner termed the issues raised by business leaders as complex and said that there are problems in terms of the totality of the trade regime that governs India-Bangladesh trade. ‘Due to inadequate infrastructures and facilities at land ports and regulatory provisions governing our trade, bilateral trade is still very restricted,’ he said. The major trade between Bangladesh and India is currently happening through the Benapole-Petrapole land port having modern infrastructures, facilities and warehouses. India wants to expand Hili and Changrabandha land ports with improving infrastructures, roads, warehouses and other facilities to enhance bilateral trade. ‘Although the management of international trade is a function of the central government of India, land ports are being managed by the respective state governments,’ he said. ‘We want to expand these two land ports. Trade is encouraged through these two land ports. That is currently not happening,’ he said, and sought cooperation from Bangladesh in encouraging the opening of more land ports. ‘The Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement was signed in 2015. We could not still be able to conclude its operation protocol,’ he added. ‘There is no problem from the Indian side. If we can conclude the BBIN MVA protocol, Bangladesh will benefit much more than India,’ he said. Doraiswami said that India was very keen to welcome more Bangladesh garments in India. India has already offered a reciprocal arrangement in which India will supply cotton, fibre and fabric and in return, Bangladesh will supply the finished products to India. ‘It will ensure greater access of Bangladesh to the Indian market. It makes great sense for us to import more from Bangladesh, especially garments and food products,’ he added.
Source: New Age
Inaugurating a pavilion, MSME Minister Narayan Rane said the government's favourable industrial policy and schemes implemented by the ministry are helping the sector to realise its full potential. Union Minister for Micro, Small and Medium Enterprises (MSMEs) Narayan Tatu Rane recently said the India International Trade Fair (IITF) provides an opportunity for MSME entrepreneurs to showcase their products and create new avenues for growth and self-reliance. Inaugurating the National Small Industries Pavilion, the MSME minister said the government's favourable industrial policy and various schemes implemented by the ministry are helping the sector to realise its full potential. Rane also took a round of the pavilion and met various MSME exhibitors. "The fair will provide an opportunity to MSME entrepreneurs, especially women, SC/ST, and entrepreneurs from aspirational districts, to show-case their skill/products and create new opportunities for growth and attain selfreliance," an official statement said. A total of 316 MSMEs are showcasing their products in about 20 sectors, including Ayush, Ceramics, Chemical, Cosmetics, Electrical/ Electronics, Embroidery, Food, Footwear, Handicrafts, Handlooms, Home Decor, Honey, Jute, Leather, Metallurgy, Gem and Jewellery, Textiles, Toys, Wood, etc. This year, MSME Pavilion acknowledges the highest ever participation of women-led enterprises (71 percent) along with the SC and ST entrepreneurs from various parts of the country. IITF has returned after a gap of one year in its 40th edition with double josh and powered by the double engine of ‘Aatmanirbharta’ and ‘Azadi ka Amrit Mahotsav.’ The India International Trade Fair (IITF) is held from November 14-27.
Source: Your Story
The state government had granted a three-year subsidy of Rs 3 per unit to the mills until December 31, 2021. The rebate given by the state government to spinning mills on purchase of power will expire by the end of December this year, top officials of the Maharashtra State Cooperative Textile Federation (MSCTF) said. The state government had granted a three-year subsidy of Rs 3 per unit to the mills until December 31, 2021. The mills are expected to set up solar power plants at their premises in these three years in lieu of the subsidy. MSCTF, along with the representatives of cooperative spinning mills, met the Maharashtra state textiles commissioner in Nagpur last week to seek a further extension on the power rebate, Ashok Swami, chairman, MSCTF, said. “The mills are currently finding it difficult to purchase cotton for their requirements because of the high prices of the commodity. The high electricity rates will only add to their problems,” he said. None of the mills have set up solar power plants because permission has been granted only for 1-megawatt (MW) capacity power plants, which generate electricity for barely two hours, Swami pointed out. It is not viable for mills to set up these plants unless the government relaxes this condition and grants permission for 10-MW to 12-MW power plants, he said. Cotton prices have gone up from Rs 38,000 per candy to Rs 68,000 per candy and it has become difficult for mills to purchase cotton for their requirements, he said. The market situation is pretty bearish because of low demand for textiles, he said. The recession in the textile industry since the past five-six years, higher electricity rates than other states, rising cotton prices and no increase in yarn rates, and high interest rates on bank loans have led to financial distress for the industry, he pointed out. The high power rates will lead to a total collapse of the mills, he said. These problems were raised last week with the state minister for textiles Rajendra Patil and Parag Jain, secretary, textiles, he said. The millers will now approach chief minister Uddhav Thackeray to seek relief for the industry and the government to grant a further extension on power subsidy in addition to permission for bigger capacity solar power plants, Swami said. Of the total of 150 cooperative spinning mills in the state, only 80 mills are currently functional with an installed capacity of 15 lakh spindles daily. The annual cotton requirement is around 12-13 lakh bales and the sales turnover are Rs 2,500 crore annually. The state government has invested Rs 2,500 crore in these mills as shares capital. These mills give revenues to both the central and state government in the form of various taxes of Rs 200 crore to Rs 250 crore annually. Ramchandra Marathe, managing director of the federation, said that the mills have approached the Centre to seek a cap on the high cotton prices. “The small family-run looms in the state face bigger problems since they have to shut down their units if they cannot afford cotton prices,” he said. Pradeep Jain, president, Khandesh Gin Press Development Association, pointed out that cotton prices have dropped by Rs 1,000 to Rs 2,000 per candy and have come down to Rs 66,000 per candy from Rs 68,000 per candy since last week. Market arrivals have increased and farmers have realised that prices cannot go up further, he said. Cotton prices had touched Rs 10,000 per quintal in some mandis in the first week of November.
Source: Financial Express
The state government of Andhra Pradesh has reached out to the Union textiles minister Piyush Goyal to establish a mega textile park at Kopparti in YSR Kadapa district of the state. They have urged the Centre to do this as part of the Central government’s plan to set up 7 mega textile parks across the country. In view of the PLI scheme, the state administration has requested Textile Minister Goyal to set up one of the three electrical equipment zones. Mekapati Goutham Reddy of Andhra Pradesh industries and IT Minister made the request during a recent meeting with Commerce, Industry and Textile Minister Piyush Goyal. “We have requested the Central government to consider establishing the electrical equipment zone on the 750-acre land that was previously allotted to the NTPC-BHEL power plant at the Mannavaram village in the Chittoor district,” said Minister Reddy after the meeting. It has also been informed that Andhra Pradesh is looking to have its share reduced from 20 to 10 per cent in the Visakhapatnam-Chennai corridor. The Indian textiles ministry issued a notification recently to set up seven PM MITRA parks as announced in the budget for fiscal 2021-22. The Mega Integrated Textile Region and Apparel (MITRA) scheme aims to develop integrated large scale and modern industrial infrastructure facility for the entire value-chain of the textile industry.
Source: KNN India
Buying branded clothes could be cumbersome as certain brands follow the UK size while others follow the USA size as the body frame of Indian men and women vary from their counterparts in the UK and the US. A specific size of one brand could vary from the specific size of the other brand in apparel. Usually, the consumer compromises on the fit of his shirt or a pant while buying the branded clothes. Among several problems, a common example is that of the size of the neck of Indian males, which vary from their counterparts in the West. Indian males tend to have a slightly thicker neck as compared to the Western male of his category. This anomaly won’t be experienced by customers anymore as India is poised to come out with its own size chart – INDIA SIZE that will usher in a drastic change in the Indian Garment industry. To counter this problem at the grass-root level, the National Institute of Fashion Technology (NIFT), under the aegis of the Ministry of Textiles, Govt. of India, has initiated a massive national sizing survey to create an anthropometric database of measurements for Indians, which is a true representative of the entire Indian population. After having completed the sizing process in New Delhi, it is being carried out with full steam now in Mumbai by NIFT, having completed in two malls – Orion mall and Inorbit Mall. Currently, they are rapidly executing the process in R-City Mall, Ghatkopar in this city. INDIA SIZE is expected to roll out sometime later next year. The survey is being carried since July 2021 by the support of Design Smith Pvt. Ltd. The monumental project approved by the Government of India and supported by industry consortium CMAI entails measuring more than 25000 (Twenty-Five Thousand) people in the age group of 15- 65 years in six different cities located in six regions of India i.e. New Delhi (North), Mumbai (West), Chennai (South), Hyderabad (Centre), Kolkata (East) and Shillong (North-East) using non-contact human safe 3D body scanning technology. Inauguration of Delhi Leg took place at Select Citywalk in the presence of Secretary Textiles (MoT) Upendra Prasad Singh, DG NIFT Shantmanu and AS & FA (MoT) Shashi Ranjan Kumar.
Source: The Print
Punjab finance minister Manpreet Singh Badal also demands a special package to Punjab on the lines of Himachal Pradesh, Jammu & Kashmir and Uttarakhand. Punjab finance minister Manpreet Singh Badal on Tuesday urged the central government to allot pharmaceutical, food and textile parks for the state. Taking part in a virtual meeting with Union finance minister Nirmala Sitharaman, he demanded a special package to the state on the lines of Himachal Pradesh, Jammu & Kashmir and Uttarakhand. “Punjab needs support from the Centre as the state is facing new-age challenges in transition of agriculture,” said Manpreet who urging Sitharaman to give productionlinked incentives to the industry so that Punjab can successfully migrate to other crops out of wheat and paddy cycle. He suggested that it will increase the income of farmers and help in conservation of groundwater and solve the problem of stubble burning which is again a burning issue in the country. He also asked the Centre to set up solar or gas-based power plants so that transportation cost of coal could be cut down. The minister sought rail links between Patti and Makhu, Rajpura and Mohali, and Beas and Qaddian. He also urged the Union minister to ask the health ministry to start a National Institute of Virology in Punjab as soon as possible as the land has been provided for the same.
Source: Hindustan Times
A measure proposed by the European Union may affect Bangladesh's robust apparel shipment to the bloc even if the country is awarded the Generalised System of Preferences (GSP) Plus status after its graduation to a developing nation. In the proposed GSP Plus scheme, the EU said if the value of a particular garment item from a country eligible for duty-free export benefit under the bloc's Everything But Arms (EBA) facility crosses 6 per cent of the total imported value of apparel, the zero duty facility will not be applicable for the product even if the GSP Plus status is granted, said Commerce Secretary Tapan Kanti The value of the total imported apparel from Bangladesh to EU countries has already gone past the threshold and now stands at more than 9.74 per cent if the import value of clothing items in 2019 is considered. EU member states bought clothes worth 154 billion euro from outside of the bloc in 2019. Of the sum, 15 billion euro went from Bangladesh, which is 19 per cent of the total, Eurostat data said. "We will launch an intense negotiation with the EU about the 6 per cent safeguard measure," said Ghosh. The secretary also said a technical committee of the ministry was working on the issue to get the detailed picture and assess the implication of the safeguard measure. Ghosh will raise the issue when he meets with Charles Whitley, the EU ambassador to Bangladesh, at his office at the secretariat today. "If necessary, we will launch negotiation with the EU Trade Commissioner," said the secretary. Rubana Huq, a former president of the Bangladesh Garment Manufacturers and Exporters Association, said the safeguard measure would be applicable to higher valueadded products, not volume. "This will give us a serious advantage," Huq replied in a message on WhatsApp. The EU is the largest export destination for Bangladesh. Currently, 58 per cent of the total export and 64 per cent of total garment items in particular of the country is destined to the continent. Dhaka is negotiating with the EU to continue enjoying trade benefits for a three-year period to 2029 after its graduation from the grouping of the least-developed countries in 2026. The new GSP Plus scheme will come into effect from January 2024 and will continue up to 2034. Abdur Razzaque, a director of the Policy Research Institute of Bangladesh, said as per the proposed GSP provisions, Bangladesh is likely to qualify for the GSP Plus after the graduation. But the specified EU 'safeguards' would exclude the country's clothing exports from any tariff preferences. The proposed GSP has removed the import share criterion, which stipulated that a country's share in EU GSP-covered imports in 2019 can't be more than 7.4 per cent. Bangladesh is a major clothing exporter, and almost all of it is exported duty-free. Its share in the EU-GSP covered imports was much higher than 7.4 per cent. "Bangladesh will not qualify for GSP Plus under the existing GSP rules. So, the proposed removal of import share criterion is welcome news for Bangladesh," said Razzaque in an email. However, the proposed EU GSP rules specify that if the combined share of HS Sections 61, 62, and 63 (comprising knitwear, woven and home textile items and defined as "product group S-11b") from a country exceeds 6 per cent of the total EU imports of the same products, safeguard measures would be triggered to remove the duty-free market access for these products. "All this implies that Bangladesh will benefit from GSP Plus preferential access. However, its apparel items will face MFN (most-favoured nation) tariff rates in the EU." The noted researcher described the safeguard measures on textile and clothing as contradictory to the intent of the proposed new regime. "In the preamble to the new proposal, it is stated that product graduation should not apply to GSP Plus and EBA beneficiary countries. But the likely exclusion under safeguards will be tantamount to product graduation." If the proposed rules remain unchanged, the average tariff on apparel exports from Bangladesh to the EU will rise from the currently zero to an average of 12 per cent, according to Razzaque. The new proposals will be final when adopted by the European Parliament and the European Commission, the executive branch of the EU. Adoption could take place in the last quarter of 2022.
Source: The Daily Star
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan recently met members of British parliament Rushanara Ali and Rupa Huq in London and discussed various issues, including bilateral cooperation over Bangladesh’s graduation from the least developed country (LDC) status, possible changes in the tariff regime and how Bangladesh could retain its access to the UK market post LDC graduation. Hassan requested Ali and Huq to extend their support over continuation of dutybenefits for Bangladesh after the graduation. Non-resident Bangladeshis in the United Kingdom can play a significant role in shaping the financial, social and economic conditions of the country, the BGMEA president was quoted as saying in a press release from the body. He sought cooperation of the two British MPs in encouraging Bangladeshis living in the UK to invest in different potential sectors of Bangladesh including high value-added and non-cotton textiles.
Source: Fibre 2 Fashion
Textile sector accounts for 3.4 percent of the Gross Domestic Product (GDP) compared to 7.5 percent for Bangladesh, 5.1 percent for Sri Lanka, 12 percent for Cambodia and 3.5 percent for Turkey, says the Asian Development Bank (ADB). The ADB in its report, “Global Value Chain, Development Report 2021, Beyond Production,” stated that the textile sector accounts for 54.7 percent of Pakistan’s gross exports and 3.4 percent of its GDP compared to 79.7 percent and 7.5 percent for Bangladesh, 31.3 percent and 5.1 percent for Sri Lanka, 52.8 percent and 12 percent for Cambodia and 17.5 percent and 3.5 percent for Turkey, respectively. The report noted that a curious case is Bangladesh, which, in spite of stellar 10.5 percent annual growth in indirect exports over 2010–19, remains a laggard in Global Value Chain (GVC) participation, appearing near or at the bottom for both rates. One explanation is that its GVC trade is highly concentrated in a particular sector: textiles and garments. This sector accounts for 79.7 percent of Bangladesh’s gross exports and 7.5 percent of its GDP, the highest and second highest, respectively, out of the 62 economies. For textiles and garments, Bangladesh’s participation is actually above the world average, beating Pakistan and Sri Lanka. This is because of a development strategy that wisely makes use of Bangladesh’s abundant pool of cheap, low-skilled labor that allowed it to achieve an average real GDP growth rate of 7.4 percent over 2015–19 and to be among the few economies to grow in 2020. The report further noted that Bangladesh’s textile and garments industry remains confined to relatively low-value-added segments such as cutting and sewing, and its cost advantage may have been gained at the expense of labor welfare. The GVCs not only transmit shocks within domestic economies but also play an important role in cross-country transmission. When suppliers in source countries are affected by disasters, it is not uncommon for firms to report production delays and profit losses as their suppliers fail to provide parts and components on time, it added. The theme of the Global Value Chain Development Report 2021 is, Beyond Production. Most research on GVCs focuses on manufacturing production; in other words, the breaking up of production processes into many discrete steps with a resulting explosion of trade in parts and components. But there are aspects of GVCs that go beyond manufacturing processes; in fact, value added and employment generation in GVCs are depending less and less on manufacturing production.
Source: Business Recorder
‘Old trees sprouting’ amid injection of new cash, technology As one of the "old" industries that empowered China's export economy dating back to the early age, the clothing industry becomes again appealing to capital, which is now eager to inject new vitality into the traditional industry. Improved supply-side efficiency including manufacturing and transportation has also become major supporting factors for the industry's new life. Investors such as GL Ventures, IDG, Legend Capital, and Matrix Partners China are just some of the names investing in the garment industry and making "old trees sprout." More investment A senior investor surnamed Cheng based in Shanghai said that textile and clothing has always been one of his main investments on the stock market. "Because of the industry's large scale and large demand in China, returns from the industry are very stable. Almost everyone is following the trend of investment in new energy and other industries. But in fact, there is also great space for development of traditional industries in the context of consumption upgrades. Therefore, it is a good time to invest," Cheng told the Global Times on Monday. In September, Bosie, an emerging domestic clothing brand, completed hundreds of millions of yuan in the B+ round of financing, which will be used for product research and development and supply chain upgrade. Separately, in September, Beaster, a new Chinese clothing brand, completed its first round of financing, securing more than 200 million yuan ($31.4 million) in funds. Apart from garment brands, the supply chain of the clothing industry has ushered in intensive financing as part of an industry-wide upgrade. In August, clothing supply chain SaaS provider Lingmao SCM announced the completion of nearly 100 million yuan in A round strategic financing. And before that, garment accessories one-stop supply chain B2B platform Fuliaoyi.com completed hundreds of millions of yuan financing. Apparel e-commerce platforms are also attracting attention from the capital market. The size of China's clothing market is expected to reach 2 trillion yuan in 2021, according to industry forecast. But institutional analysis pointed out that the industry was large while not strong enough. The upgrading of clothing industry led by evolving demand of new generation and increased efficiency of suppliers is one of the fundamental reasons for the entrance of new capital into this sector, said analysts. The trend is set to further boost the globalization of Chinese brands. Upgrading on the way Around 80 percent of China's garment enterprises remain labor-intensive operations, many of which are seeking to improve their proportion of production by using mechanization, and then achieve intelligent production, Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Monday. "The process of upgrading from manual to mechanized and then to intelligent provides a huge space for capital investment. Enterprises need new production lines, assembly lines and other machines to make upgrading possible," said Zhang. In addition, analysts noted that China's garment industry can grow beyond the establishment of global fast-moving consumer goods brands such as Uniqlo and Zara. China has all the ingredients to form a product system from sportswear like Adidas or Nike to other forms of clothing, such as down jackets, they said. In fact, the performance of domestic clothing brands during this year's Double 11 online shopping festival offered positive proof that Chinese brands are growing in influence. During the just-concluded shopping festival, most of domestic key companies, especially local sports brands, were among the hottest items for Chinese shoppers. For instance, sportswear brand Li-Ning saw a year-on-year growth of 37.7 percent of sales during the shopping spree, and outdoor down jacket brand Bosideng gained 53 percent growth, data showed. "The majority of our products sold out during Double 11 presales and our factory had to work in full swing to meet demand. Our sales went up nearly 25 percent from 2020 and the whole-year sales are expected to increase by 20 percent," a manager of a domestic clothing company based in Ningbo, East China's Zhejiang Province, told the Global Times on Tuesday. It only began domestic sales in 2018, after fractured China-US trade relations "severely affected exports." According to an analysis report by Guosen Securities, in the short term, the institute is optimistic about resilient brands. In the long term, it continues to be optimistic about high-quality enterprises with leading brand strength, product strength, operating efficiency and financial health. "The building up of brands is actually a type of upgrading for the clothing industry. In terms of production scale, Chinese products are among the top in the world, but they are still inferior in the international market," a textile industry analyst surnamed Chen told the Global Times on Tuesday. China remains the biggest textile exporter in the world, with net exports of textiles equaling $154.1 billion in 2020, up 28.9 percent on a yearly basis and accounted for 43.5 percent of world's total textile exports in terms of value. The figure stood at 10.3 percent in 2000, according to a report on world trade review by the WTO. Products of the same grade with similar quality and specifications produced in China remain cheaper than those from other countries due to the lack of internationally well-known brands and enterprises, Chen said, noting that it is the direction that China's clothing industry should make advancement.
Source: Global Times
Keeping fibres out of landfill – and the oceans. Carrington Textiles, headquartered in Adlington, UK, has announced the launch of a range of new workwear fabrics developed using sustainable fibres, including recycled polyester, BCI and organic cotton, as well as a new technology that biodegrades synthetic fibres and a more durable flame retardant product. Constance and Balaton stretch fabrics, in weights of 210gsm and 255gsm respectively, both incorporate Repreve recycled polyester made from plastic bottles, and BCI cotton, along with high stretch technology from Xlance which is eco-friendly, solventfree, and produced using 100% renewable energy. Constance is the Carrington Textiles sustainable alternative to workwear fabric Idra, and Balaton a similar option to replace Cresta. On the lighter side of the Balance Range, is Kielder, a 185gsm fabric which consists of 50% BCI cotton and 50% Repreve. As an alternative to Cooltex Lite, Kielder offers an outstanding soft feel due to its 4/1 twill, a polyester face for greater durability and cotton inside for increased wearer comfort. Next are the additions to the Delamere family in 210gsm and 245gsm weights, made from 65% Repreve and BCI cotton. Rivington 205gsm and 220 gsm weight fabrics are meanwhile the eco-friendlier options for Xtraflex Lite and Xtraflex 1 respectively.
CiCLO Following extensive research, Carringtom has also adopted CiCLO technology – a sustainable additive that is combined with polyester at the very beginning of the fibre making process. When CiCLO polyester ends up in the environment, either through washing or end of life, it behaves like natural fibres, in turn reducing microplastic pollution and textile accumulation. It was developed by Intrinsic Advanced Materials (IAM) a joint venture between Intrinsic Textiles Group, a Silicon Valley startup, and Parkdale Advanced Materials, the fibres and yarns division of textiles giant Parkdale. Carrington Textiles is the first workwear fabrics manufacturer to use CiCLO in its new Hawksbill and Orca materials, both in weights of 245gsm, and sustainable alternatives to the company’s bestselling Tomboy. Hawksbill’s composition includes 65% CiCLO polyester and 35% organic cotton, while Orca incorporates 26% recycled CiCLO, 29% virgin CiCLO and 35% BCI cotton.
Durable Flamestat With 90% of professional clothing ending up in landfill, it’s also important to increase the life of garments with fabrics that can withstand industrial washes and multiple uses. Responding to this, Carrington’s Flamestat 250gsm is a new member of the Flamestat family with flame retardancy which is guaranteed to last the lifetime of the garment due to its robust construction. Consisting of 75% cotton, 24% polyester and 1% antistatic, its flame retardancy meets the standards EN ISO 11612, EN ISO 14116 index 3 and EN ISO 11611, while its antistatic properties are to EN ISO 1149-3-5 standard. “These new fabrics see us take a major step towards an ever more sustainable future in workwear textiles, increasing the use of recycled and sustainable fibre raw materials, as well as introducing biodegradable technologies, and doing so whilst still maintaining the same high levels of durability to prolong the garment lifetime,” said Carrington’s sales and marketing director Paul Farrell. “We look forward to announcing more new sustainable products in the future, and to keeping Carrington at the forefront of sustainable textile development.”
Source: Innovation in Textiles
Peru Moda Deco and Alpaca Fiesta, Peru’s most important fashion and textile trade shows, closed on Friday after several weeks of digital events bringing together all links in the textile and alpaca value chains. The fairs, organised by the Peruvian Commission for Export and Tourism (Promperu), and the International Alpaca Association (AIA), were held together for the first time, and entirely virtually, to maximise their ability to attract international buyers, given ongoing restrictions on travel due to Covid-19. The virtual exhibition spaces hosted over 300 local companies and brands specialising in apparel, footwear, jewellery, cotton and alpaca fibre textiles and more. The exhibitors were exposed to approximately 200 international buyers, including representatives from brands such as Christian Dior, The Citizenry, Hartford and Speedo. On the schedule were digital presentations from established names, including Sol Alpaca, Anntarah, Royal Knit and Wayra, as well as emerging brands like Inkamoda, Sophie Ottaner, Norgate and Lana Lina. Another feature over the joint event’s 19-day run was a series of panels and conferences dedicated to innovation, design, trends and advancements in technology and sustainability, particularly in regards to alpaca, one of Peru’s main textile exports. Alpaca Fiesta (which usually takes place every three years) made the sustainable development of all aspects of the alpaca value chain – from animal breeding, to textile production and finished product – its focus for this edition. According to Promperu, as of August of this year, Peru’s alpaca exports totalled $112 million, an increase 90.2 percent compared to the same period last year. Its main destinations are China, the US and Italy. Peru has the largest population of alpacas in the world, with over 80 percent of the global total. Peru’s overall textile exports reached $1.04 billion in the first eight months of the year and the government has said it hopes to reach $1.5 billion by year’s end.
Source: Business of Fashion
Also urges increasing its validity up to December 2022 The Bangladesh Textile Mills Association (BTMA) has demanded an increase and also extension of the loan limit from the Export Development Fund (EDF) for the millers, from the existing $30 million cap to $40 million until December 2022. They also demanded bringing down the interest rate of this loan to 1.75%. The apex organization of the textile millers made this demand in a letter to Bangladesh Bank recently. BTMA claimed that the weaving, dyeing, printing, and finishing mills were not getting the facility of enhanced loans from the EDF. Mohammad Ali Khokon, president of the BTMA, sent the letter to the deputy governor of the central bank of the country. The letter said that they wanted to increase the loan limit, as well as extend its validity for its member millers. The raw material price, particularly raw cotton, yarn, dye-chemicals have increased almost 100% in the global market, said Mohammad Ali Khokon in the letter.
For this reason, the limit of $25 million is not enough at all corresponding to the actual requirements. Based on the current price of raw materials, the limit should be $35-$45 million, he also said. They wanted the facility till the next December 30, 2022 as the disruption caused by the Covid-19 is still prevalent and the recovery may take 2-3 years more. They also requested the central bank to consider the proposals to facilitate the manufacturers and exporters to maintain their supply chain and sustain the local textile industry. According to millers, along with abnormal hikes in the price of raw materials, freight fares have also increased significantly, which brought additional pressure on them. Earlier on May 17 of the last year, the central bank enhanced the loan limit from the EDF to $30 million from $25 million in response to the demands from BGMEA and BKMEA following the outbreak of the Covid-19 pandemic. Moreover, the interest rate on loans taken from this fund for exporters was reduced to 2%. Bangladesh Bank formed EDF with $15 million with the help of the World Bank. The size of the fund has been gradually increased and new sectors have been brought under this loan. Loans can be taken from EDF for import of goods through back-to-back credit.
Source: Dhaka Tribune
