Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal has said a slew of Production Linked Incentives (PLI) schemes announced by the Government in various sectors have induced post-Covid industrial and economic recovery. Chairing a review meeting of the Steering Committee on Advancing Local value-add & Exports (SCALE), Shri Goyal said there has been a very positive Industry feedback about the various PLIs announced by the Centre .It may be noted that some of these PLIs in Textile , Automotive and White Goods Sector are already beginning to encourage more growth. Out of the global Auto Component trade of $1.3Trillion, India’s share is $15 Billion. The Government aims to double its exports of Auto Components to $30 Bn by 2026. Deliberating on ways to enhance competitiveness and leverage the untapped potential of Indian industries to fulfill the Prime Minister Shri Narendra Modi’s vision of an Aatmanirbhar Bharat, Shri Goyal asked all stakeholders to have best quality products and world class labs for testing as India embarks on an unprecedented global trade engagement. Underlining the need to reduce Logistics costs to make our factory products competitive in global markets, he asked the States to reduce state specific disabilities. The Commerce Minister also urged the States to undertake suitable amendments in Labour laws to take advantage of PLIs induced manufacturing growth. “Cost of doing business needs to be assessed State-wise,” he remarked. Shri Goyal asked Industry captains to take advantage of low labour costs and reap benefits of India’s huge scale and demographic dividend. Pointing out that every country cannot be good in all sectors, Shri Goyal said India has to choose niche and specific areas and excel in it. “Take comparative cost advantage in key areas,” he said. Shri Goyal identified key focus areas for improvement to achieve robust growth of Manufacturing sector. These areas include Land, Skill Development , Government & Industry partnership and compliance of Model Labour Law. Encouraging the Industry to go for technology transfer and indigenization of chip manufacturing, Shri Goyal said there are great possibilities emerging in new sectors. “Huge opportunities exist in Drones sector,” he said, while stressing on proper regulations to be worked out by the Ministry of Civil Aviation for the growth of this niche sector. Calling upon the electronics industry to aim for local value addition in TV manufacturing from the current 28% to 43.7%, Shri Goyal said the Set Top Box (STB), CCTV, Mobile Handsets and Television manufacturers should come out with plans on how localization can be achieved. Shri Goyal lauded the Air Conditioner manufacturers for achieving a great degree of localization and also switching over to CFL-free cooling technology. On the switchover to clean energy in automobiles sector, the Minister stressed on ramping up indigenous production of magnets and electric motors.
Source: PIB
The Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal has saidthe WTO needs to reassess the way it has been conducting its affairs. Pointing out that certain countries don’t give market access equitably and openly, and extend hidden subsidies, Shri Goyal said the developed countries should do more and meet their obligations such as providing clean and green technology to achieve the SDGs and achieve Climate goals and meet the needs of billions of people. “It think it’s so unfair! I can understand a discussion on which countries should be considered developing and which should now be considered developed, I think the world should be open to a discussion on that. But to deprive countries from certain differentiated treatment in their business practices when they are at levels of $600-3000 per capita income and putting them on the same benchmark as a country which makes $60,000 or $80,000 per capita is grossly unfair. So, I think the developed world should look at their priorities,”said Shri Goyal, while interacting during a session on “Enhancing Global Footprint: India’s Big Opportunity” at the CII Global Economic Policy Summit - 2021 here today. Pointing out that the world’s second largest number of STEM Graduates are Indians or Persons of Indian Origin, Shri Goyal said, “the most powerful countries in the world today are concerned about the growing dominance of non-transparent and non-market economies and, therefore, are looking to engage with India because in their own ecosystem they are not preparing as many STEM graduates as a country like India does.” Stating that the world is looking at India’s contribution to Innovation and Sustainability, Shri Goyal said, “India is a land of disruptive ideas and our industries will play a critical role in growing our global footprint as we undertake bold reforms for achieving aggressive targets.” Shri Goyal said the Government should have no role in running businesses, rather it should act as a facilitator. “Boosting the role of the private sector and engaging both the Government and the private sector to work possibly through private-public partnerships, through greater engagement with the private sector and the government, but leaving the work of running businesses to business. So the Government’s job to keep expanding our footprint or our engagement into businesses, our role should be more and more facilitating businesses. And Prime Minister Modi has over the last seven years focussed a lot on getting businesses to be run by business persons and government to act more as a facilitator. And we hope to be able to take that forward in a much bigger way.” Shri Goyal said the Prime Minister Shri Narendra Modi had assured at the G20 Summit that India will manufacture five billion vaccines during the next year to make the world a safer place. “The world’s first DNA vaccine is coming out of India, the world’s first nasal vaccine, we will soon have a RNA vaccine which will match the best in the world, in fact be better than the best in the world, it won’t need Minus 60-70 degrees temperature to store that vaccine, it can be done between Minus 2-10 degree. Look at the huge impact it will have in the logistics chain and the ability to deliver that worldwide at affordable prices in a very cost competitive manner,” he said. Shri Goyal said: “The contribution that India is proposing to make in the next few months completely overrides the contribution of any other country or any other region when it comes to truly making vaccines available to every nook and corner of the globe, particularly the Less Developed Countries and the developing countries.”
Source: PIB
Move will lead to higher prices for common man, inflation’ The Centre’s notification on higher GST rates for several textile and apparel items from January next, has come as a blow to micro, small and medium-scale textile and clothing units with industry groups asserting that the move will push up prices for consumers and spur inflation. In an industry, where almost 80% of the units are in the MSME segment, fixing the rate at 12% for fabrics and garments will only lead to higher prices for the common man, said Sanjay K. Jain, chairman of the National Expert Committee on Textiles,Indian Chamber of Commerce. Mr. Jain said that with the notification, the manmade fibre (MMF) sector would face a 12% rate from fibre to garments, while the cotton sector would have 5% tax on cotton and yarn and 12% for fabrics and garments. “The industry and the market can absorb 3% to 4% hike,” he remarked. “But 7% is too steep and sudden. It is the MSME units that make the low-cost garments mostly and these units may suffer from drop in demand. In the long run, many units in the unorganised sector may move out of the GST net,” he remarked. While the notification, issued late on Thursday, was based on the recommendations of the GST Council and therefore, not a complete surprise, industry groups were disappointed that their representations to the government to maintain status quo or bring the entire textile supply chain under 5% rate had not been heeded, Mr. Jain added. Clothing Manufacturers Association of India Chief Mentor Rahul Mehta said the notification was both ‘disappointing and distressing.’ The move would lead to higher prices for the end consumer at a time when high raw material costs had already impacted prices. The industry had made several representations to the government in the last two months to not change the rates and would continue to do so, he added. While the Southern India Mills’ Association chairman Ravi Sam and Confederation of Indian Textile Industry chairman T. Rajkumar welcomed the move to set right the inverted duty structure for the MMF sector, Mr. Sam said the government should not have changed the rates for the cotton sector. K.E. Raghunathan, convenor of the Consortium of Indian Associations, said the government appeared to have followed a carrot and stick approach. While it announced Production Linked Incentive scheme for the sector, it had increased the GST rates by 7%. “A master stroke to penalise both consumer and the manufacturer in one shot,” he remarked. Industry sources observed that almost 90% of fabric production in the country was in the unorganised sector. Increasing the rate to 12% for fabrics would hit the power loom and handloom weavers. The textile sector was certain to require additional working capital now, they added.
Source: The Hindu
The new regime may have just three major tax rates covering most of the items against four now - 5%, 12%, 18% and 28%. The recast will seek to simplify the regime as well as lift revenue. India could be eyeing a significant revamp of the goods and services tax (GST) structure as the regime completes five years in July next year when compensation to states is set to come to an end. Tax slab restructuring and reducing exemptions could be considered in the most comprehensive makeover of the single tax that was rolled out on July 1, 2017. The new regime may have just three major tax rates covering most of the items against four now - 5%, 12%, 18% and 28%. The recast will seek to simplify the regime as well as lift revenue. A group of ministers (GoM) headed by the Karnataka chief minister is likely to meet soon to finalise its recommendations that could be taken up at the next GST Council meeting. "At the last GST Council meeting a presentation was given on various revenue scenarios... It is for states now to see how they wish to tackle the situation post July," said a senior government official detailing the major items on the agenda. The Centre compensates states for loss of revenue on account of the implementation of GST for five years--that ends next year. States have been worried about a significant drop in their revenues once this compensation ends. Union finance minister Nirmala Sitharaman had recently indicated that the effective tax rate under GST had slipped from the original revenue neutral rate of 15.5% to 11.6% "knowingly or unknowingly" due to multiple rate cuts since GST rollout in July 2017.
Policymakers Back Review of Slabs
Policymakers in states and the Centre have backed a review of the slabs to address the revenue issue. Options on the table include pruning the list of items, both goods and services, currently exempt from the tax. One option is to merge the 5% and 12% levies to create one rate, and creating a three-slab regime of the merged rate, 18% and 28%. "Discussions have been centred around how this rationalisation needs to be achieved," an official said, adding that all options including reworking the slabs are being examined. With GST revenue collections rising in recent months, it is felt that a revamp can be considered. The GoM will meet on Saturday to discuss details with its final recommendations to be taken up by the GST Council. Apart from the four key slabs, 0.25% and 3% applies to jewellery and precious metals, respectively, besides a top-up compensation cess levied on select items such as automobiles. Many common use items have been exempted from GST, making it a complicated regime prone to classification disputes and leakages. GST is not levied on nearly 150 goods and over 80 services. The 15th Finance Commission, headed by NK Singh, in its report had also made a case for GST structure rationalisation. Tax experts say that with GST collections showing an encouraging trend in the past several months, this may be the right time to simplify the rate structure. "There is a need for rate rationalisation in GST and the multiple exemptions need to go and rates need to converge to a two or three-rate structure," said EY partner Bipin Sapra. By pruning the exemption list, the GST base can be widened, which will not only increase revenue but also keep the overall rates at a reasonable level, Sapra said. Rather than focusing on increasing the effective tax rate, the emphasis should be on further expanding the tax base by keeping levies moderate, said Pratik Jain of PwC. "Further, from a tax policy perspective, it's important to remove barriers like restrictions on claiming input credits and applying GST based on price points, size of packing, capacity and so on," he said.
Source: Economic Times
The council said the budget for 2021-22 was well taken in all the spheres due to transparency and realism and it was reformist and growth oriented. The economic advisory body to the Prime Minister has projected India's economy to grow 7-7.5% in the next fiscal year, and called for a clear roadmap for privatisation and continuing growth orientation in the upcoming budget. It expects contact-intensive sectors to recover and investments to pick up in the fiscal year starting April 2022. These sectors, such as travel, hospitality and tourism, were among the worst hit by the pandemic. "Members were optimistic about real and nominal growth prospects in 2022- 23. Other than an element of the base effect, the contact-intensive sectors and construction should recover in 2022- 23," the Economic Advisory Council to the Prime Minister (EAC-PM) said in a statement after a meeting on Thursday. "Once capacity utilisation improves, private investments should also recover," it said. The Reserve Bank of India expects the economy to grow 9.5% in the current fiscal year. The council said the budget for 2021-22 was well taken in all the spheres due to transparency and realism and it was reformist and growth oriented. On the Same Path It called for the budget for FY23 to follow the same path. It should signal the use of the extra revenue in the form of capital expenditure and human capital expenditure, as Covid19 has led to a human capital deficit, the council said. "However, this should not mean that the Union Budget for 2022-23 should project unrealistically high tax revenue or tax buoyancy numbers," the EAC-PM said in the statement. The council was reconstituted last month. Former RBI deputy governor Rakesh Mohan, IIM professor TT Ram Mohan and National Council of Applied Economic Research director-general Poonam Gupta were inducted as the new part-time members for a twoyear term. Bibek Debroy continues to chair the council.
Source: Economic Times
The Central Board of Indirect Taxes and Customs (CBIC) has notified an increase in goods and service tax rate of various kinds of textiles, apparel and footwear to 12% from 5% earlier, which will be effective from January 1, 2022. However, GST rates for certain synthetic fibres and yarn have been lowered from 18% to 12%, according to the notification issued on Thursday, bringing in uniformity of rates for the entire textiles sector as well as removing distortions due to the inverted duty structure. The GST Council in its meeting in September had decided to correct inverted duty structure on footwear and textiles, which it said will come into effect from January 1, 2022, but had left the effective rate change undecided at that time. The latest notification specifies that GST rate on article of apparel of any value will be 12%, from next year. So far, a 5% tax is levied on sale value of upto Rs 1,000 per piece. Similarly, in the case of footwear, the GST rate has been changed to 12% from next year. At present, 5% GST is charged on sale value of upto Rs 1,000 per pair. Experts said that the rate changes will provide clarity to the industry and settle, once and for all, the issues caused by inverted duty structure. “The GST rate changes proposed from 1 Jan 22 for the Textile industry will ensure that the inverted duty structure issues will come to an end on account of the 12% uniform rate across the value chain,” said MS Mani, senior director at Deloitte India. GST rate for Woven fabrics, Sewing thread of man-made filaments, Synthetic filament yarn other than sewing thread, synthetic monofilament, Artificial filament yarn including artificial monofilament, has been increased from 5% to 12%. Knotted netting of twine, cordage or rope made up of fishing nets and other made up nets, of textile materials, pile fabrics, terry fabrics, knitted or crocheted, blankets and travelling rugs, bed linen, table linen, toilet linen and kitchen linen, curtains and interior blinds, sacks and bags, of a kind used for the packing of goods, tarpaulins, awnings and sunblinds, will also be taxed at 12%. Tents; sails for boats, sailboards or landcraft, camping goods, sets, consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered tablecloths or serviettes, or similar textile articles, put up in packings for retail sale, will also be charged 12% GST from January 1, 2022.
Source: Economic Times
The commerce ministry has been holding consultations with the industry for a nationalretail policy to strengthen the overall ecosystem of the sector, Union Minister Som Parkash said on Thursday. The minister of state for commerce and industry said to create balanced growth in the ecosystem, it is imperative to focus on creating an overarching retail policy for the country. "Although a few states have created their own retail policies, it is important to have an overarching policy at the central level. DPIIT has been in close consultation with the industry and have been working on a draft National Retail Policy to strengthen the overall ecosystem," he said at a CII webinar. He said as retail encompasses a variety of formats across various categories, the creation of a policy that addresses all these segments is a complex exercise. However, he said, the government is striving to release a policy in the near future and there are three areas that need to be focused on while formulating that. It should be a cohesive policy that addresses issues of licensing, approvals, labelling and safety, and it should also focus on modernisation and adoption of technology, the minister said. "We need to focus on helping traditional retail to modernise through the development of backend infrastructure, payment mechanisms and in-store operations. From the government side, we would like to facilitate the above three areas and help retailers modernise," Parkash said. The minister also informed that the Department for Promotion of Industry and Internal Trade (DPIIT) is working towards creating a regulatory compliance portal that will act as a bridge for industries and government to minimise burdensome compliances. "The objective of the portal is to reduce the compliance burden that currently exists and further simplify government interface, while seeking to boost manufacturing, making Indian industry competitive in various areas such as textile and apparels," he added.
Source: Economic Times
Union Minister for MSME Shri Narayan Rane said that the MSME sector plays a significant role in terms of job creation and expanding manufacturing base. Speaking at the North East MSME Conclave in Guwahati today he saidcurrently the sector consists of over 6 crore units employing over 11 crore people and is a seminal contributor to the economic growth with over 30% of contribution to GDP and over 49% of overall exports from India. Shri Rane said India can develop only when we develop the North-east and it is also the topmost priority of the Ministry of MSME.He also stated that the correlation between the Indian economy and the MSME sector's performance has never been more aligned. This would continue to grow even closer in the upcoming years.The Minister said given the impact of MSMEs on our economy, it is imperative that push is given to promote entrepreneurship amongst the youth and allow them to play an integral role in development of Indian economy thereby realizing the dream of 5 trillion economy. Ministers from the State Governments of North Eastern States, who attended the Conclave, also emphasized that such conclaves will help the Region in its efforts towards encouraging entrepreneurship and enhancing competitiveness of the sector in the changed economic scenario. This would also help in developing understanding about the schemes implemented by the Ministry of MSME as well as initiate a dialogue with the State Governments and other stakeholders that would help in better planning and execution of policies for the sector.
Source: PIB
The country's foreign exchange reserves declined by $763 million to $640.112 billion in the week ended November 12, RBI data showed The country's foreign exchange reserves declined by USD 763 million to USD 640.112 billion in the week ended November 12, RBI data showed. In the previous week ended November 5, the reserves had decreased by USD 1.145 billion to USD 640.874 billion. It touched a lifetime high of USD 642.453 billion in the week ended September 3, 2021. In the reporting week, the decline in the foreign exchange reserves was on account of a dip in foreign currency assets (FCA), a major component of the overall reserves, Reserve Bank of India's (RBI) weekly data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves were up by USD 1.461 billion to USD 40.239 billion in the reporting week. The special drawing rights (SDRs) with the International Monetary Fund (IMF) dipped USD 103 million to USD 19.184 billion. The country's reserve position with the IMF was down by USD 27 million to USD 5.201 billion in the reporting week, the data showed.
Source: Business Standard
PVH's brands include Tommy Hilfiger and Calvin Klein Ethiopia's once rapidly growing economy is taking another hit because of its yearlong war as global clothing manufacturer PVH Corp. says it is closing its facility there because of the "speed and volatility of the escalating situation." The company's statement, emailed to The Associated Press, comes two weeks after President Joe Biden announced he would cut Ethiopia from a US trade programme, the African Growth and Opportunity Act, because of "gross violations of internationally recognised human rights." The sanction goes into effect on January. 1. PVH, whose brands include Calvin Klein and Tommy Hilfiger, has been a marquee occupant of Ethiopia's model industrial park in the city of Hawassa, where Africa's second-most populous country has made clear its aspirations of rapid, Chinese-style development. PVH in the past has said AGOA helped to convince it to set up in Ethiopia. H&M, another high-profile occupant at the Hawassa park, did not respond to an AP request about its plans. Ethiopia's war and the many reported atrocities on all sides have led some in the business world to press Prime Minister Abiy Ahmed and his government for a cease-fire and humanitarian access to the blockaded Tigray region, echoing ongoing efforts by envoys from both the US and African Union. Thousands of people have been killed as Ethiopian and allied forces fight the Tigray ones who long dominated the national government before Abiy came to power in 2018. The conflict has been marked by gang-rapes, forced expulsions and manmade famine. "We continue to emphasise to the government of Ethiopia the need for all parties to facilitate the delivery of humanitarian aid and supplies to those who need it, and see this as a first step toward the cessation of hostilities and a process that will result in lasting peace," Stephen Lamar, president of the American Apparel & Footwear Association, told the AP in an email. "As the crisis spreads – and if Ethiopia does lose AGOA eligibility – companies will increasingly be unable to source from Ethiopia. This will hurt Ethiopia's economy, particularly the women who comprise the bulk of the workforce in the country's apparel industry," Lamar added. he harm to low-income workers far from the war is an argument that Ethiopia's government made as it openly lobbied against losing AGOA eligibility. Ethiopia's chief trade negotiator Mamo Mihretu has asserted that millions of workers would be affected. But the Biden administration, which last week said it was not imposing sanctions on Ethiopia's government and rival Tigray forces "to allow time and space" to see if diplomatic efforts make progress, ran out of patience. The AGOA announcement "is making people in the business world especially anxious. It certainly makes it less economically smart to be there," Mike Posner, assistant secretary of state for democracy, human rights and labor in the Obama administration, told the AP. "I'd say we have very limited time now to try to tamp down the rhetoric and find a way to the bargaining table," Posner said, addressing Ethiopia's leadership. "This could be disastrous for the economy." Warnings about the economy have been growing as Ethiopia's government pours resources into the war. In its World Economic Outlook report last month, the International Monetary Fund said projections for 2022 to 2026 "are omitted due to an unusually high degree of uncertainty." Businesses like PVH had entered Ethiopia because of the government's push in recent years to build a network of industrial parks to make clothing and footwear for export, along with the country's large population of more than 110 million people and wages that are "significantly lower than even places like Bangladesh and Cambodia," Posner said. But the instability has brought businesses' thinking to a tipping point, he said. Chinese and other companies may continue to operate in the industrial parks, but Ethiopia is a tiny market in the global economy, Posner said: "If Ethiopia's government thinks it can make this work by shutting out the US or Europe and only selling to Chinese or Indian customers, I think it's going to be disappointed.''
Source: The Week
The fashion industry is moving toward a more digitalized future, one that promotes improved efficiency and sustainability. This was the focus of the first day of the 2021 World Digital Textile Forum, hosted by the Advancement Association for Digital Textile (AADT) on Nov. 17. Day one featured fashion technology experts including Mark Harrop, CEO and founder of WhichPLM Group; Justin Huang, president of the Taiwan Textile Federation; Alexa Dehmel, owner of Active Sports Design Consulting; Amal Jomaa, head of fashion at So Real Digital Twins; and Victor Chao, CEO of Frontier.cool, who shared valuable insights on how digitization is transforming the textile industry as we know it. The four-day forum will be moderated by Nicole Chan, chairperson of the AADT. Chan is also an attorney-at-law and industrial consultant, board director of Dot Asia, ICANN ASO/AC, and vice chairman of the Digital Transformation Association.
Fashion trends and disruptions During his presentation, Harrop shared his thoughts on areas of high potential growth and what he considers disruptive trends in the industry today. He also addressed the metaverse, a word that has been thrust into the spotlight ever since Mark Zuckerberg announced Facebook's name change to Meta. "We talk about the metaverse as if it's something brand new and it may be in the sense that it's going to pull the digital assets in, but in actual fact, digital technology has been around for a while. 3D footwear for 30 years, 3D apparel for already 20 years," Harrop said. He added that the industry is starting to see improvements in these solutions, which is allowing the entire ecosystem to be connected. Among the areas, Harrop sees as having high growth potential include: product planning, inspiration and concept, product lifecycle management (PLM), fact-based costing, digital color management, and sourcing and supplier management. Harrop talked about how the work from home (WFH) culture as a result of the COVID-19 pandemic is helping to drive digitization in fashion. WFH forced retailers, brands and manufacturers to urgently embrace a new set of collaborative solutions to enable design teams to collaborate virtually. One solution he pointed to is a digital storyboard that can interoperate with technology ecosystems. Harrop also highlighted a number of disruptive trends, including sizing and scanning; digital and component materials scanning; asset lifecycle management; 3D creative design (DPC); virtual showrooms; synthetic and fact-based costing; digital print and dyeing; IoT and value chain visibility; material, product and labor sustainability; artificial and business intelligence (AI and BI); and workflow and critical path. In terms of 3D, Harrop noted that it has crossed the chasm in terms of maturity. "As 3D solutions develop to deliver real, quantifiable benefits for the downstream, 3D is also starting to move upstream, not only supporting co-design but also co-development and manufacturing," he said. "As we develop these 3D assets, we're then using them as products or components and we're placing them into virtual showrooms. This is the metaverse," said Harrop. "As we expand our footprint into these digital assets and they become widely accepted as a supplement for physical, we can now enable consumers to put on their headsets and go to a store and do virtual try-ons. And we, as a retailer or brand can see what our stores look like." Moving forward, he expects virtual showrooms to expand rapidly. Harrop also addressed how digital methods are enabling the industry to be more sustainable and eco-friendly. For example, direct-to-roll digital printing is not only more eco-friendly and sustainable, it uses less water, less energy, and produces less waste.
Digitalization of Taiwan's textile industry Huang's presentation centered on four main topics to do with Taiwan's textile industry: introducing Taiwan's textile industry, the impacts of COVID-19, sustainable innovation and technology, and smart manufacturing. According to Huang, there are more than 4,500 textile and garment manufacturers in Taiwan as of 2020, employing more than 141,000 people. The total production value in 2020 amounted to NT$289.3 billion (US$9.78 billion) with export value reaching US$7.53 billion. Taiwan's textile industry mainly focuses on the upper- and mid-stream sectors, which account for 95% of the total value. Covid has had a major impact on Taiwan's textile industry. Exports value saw a significant decrease in 2020 compared to 2019, but is recovering in 2021. Despite this, Huang pointed to the rise in oil prices, materials shortages, the pandemic impact in Vietnam, and increased shipping/logistics costs as ongoing challenges as a result of the pandemic. However, he pointed to the pandemic as a turning point for Taiwan's textile industry. Taiwan has undergone two major transformations as a result of the pandemic. The first is to become more sustainable by taking into consideration the sustainability of raw materials, the manufacturing process, and the end product. The second is to increase smart manufacturing. By digitizing, automating and making factories smarter, manufacturers are able to visualize production information, easily access data, and manage systems. Not only does smart manufacturing have the added benefit of making facilities look cleaner and neater, but it also requires less labor while providing more actionable information, Huang highlighted. Huang added, "Investment in sustainability and digitalization will benefit not only the supply side but also the demand side."
Opportunities presented by digital twins What is a digital twin and how it is changing the fashion industry were the focus of Jomaa's presentation. So Real Digital Twins is a Switzerland-based company that specializes in helping companies create "cinematic quality, ready-to-use digital twins." "3D solutions for the fashion industry have existed for over 20 years, but it is important to make a clear distinction between a 3D file that is created as a mockup for rapid prototyping and a full digital twin," Jomaa said. A digital twin is a virtual representation of a product in 3D. It is an exact replica of a reallife product with the same physical properties and measurements, according to Jomaa. This means it can support the end-to-end process and not just a single segment. So Real's technology works by first scanning the product with an x-ray machine that creates volumetric data. In the next step, the company's artificial intelligence and machine learning software takes the volumetric data and converts it layer by layer to build the digital model in 3D. In the final step, the digital twin is created. Jomaa emphasized that the embedded metadata allows for the 3D model to support the entire product lifecycle. "Digital twins can help transform the value chain from a linear process that moves from designing, planning, sourcing, supplying and finally the customer experience to a more interconnected process where the different steps overlap. It is a move toward a fully circular process rather than a vertically integrated operation that functions in separate silos," Jomaa explained. In the design process, digital twins empower designers to work in a more intuitive way with 3D models. It also helps to accelerate the design process, saving time and money, while also reducing waste and the carbon footprint. Instead of waiting for and producing physical samples, digital twins allow designers to make changes on the spot, create multiple variations of a design, and provide a realistic visual sample, all in real-time. Digital twin technology is also enabling the shift toward product customization. Consumers can customize products online with extreme accuracy, allowing for ondemand manufacturing and eliminating inventory. The data gathered from these customizations can also be used by the companies to better understand consumer preferences and help inform design decisions. Additionally, Jomaa noted, "digital twins are the future asset building blocks that make up the metaverse." Industry trendsetters like Nike are already expanding into the metaverse.
Frontier.cool enables better digital fabric sourcing Frontier.cool, a co-organizer of the forum, is a Taiwan-based digital fabric platform that utilizes AI to create realistic textile and fabric images. As fashion becomes increasingly digital, digital fabric sourcing has become more and more important. "With Frontier's groundbreaking AI, we are now able to scale like never before," Chao said. Frontier's Lasagna AI engine uses multiple texture maps and layers them together to create an accurate and life-like fabric image in 30 seconds or less, using an ordinary flatbed scanner. This allows textile mills to give potential clients a much clearer picture of what the material looks like and even apply it directly to their digital design work to see how it will look. Frontier has digitized fabric swatch cards and uploaded them to the cloud. Dehmel talked about how platforms like Frontier are revolutionizing digital fabric sourcing in today's fashion industry by making over 20,000 digital materials available in the cloud. The platform makes searching, managing and collaborating easier, and also facilitates a faster and better workflow. "To be able to create a digital revolution within a brand, it needs to recreate the whole digital process of collection creation and the understanding that it all starts with the digitized fabric," Dehmel said.
Source: Digi Times
Japan's Cabinet approved on Friday a record 56 trillion yen ($490 billion) stimulus package, including cash handouts and aid to ailing businesses, to help the economy. Japan's Cabinet approved on Friday a record 56 trillion yen ($490 billion) stimulus package, including cash handouts and aid to ailing businesses, to help the economy out of the doldrums worsened by the coronavirus pandemic. The package has more than enough content and scale to deliver a sense of security and hope to the people, Prime Minister Fumio Kishida told reporters in announcing the plan earlier in the day. The proposal won Cabinet approval in the evening, according to the prime minister's office. It still needs parliamentary approval. Kishida has promised speedy action, and parliament will convene next month, he said. The plan includes doling out 100,000 yen ($880) each in monetary assistance to those 18 years or younger, and aid for businesses whose sales plummeted because of coronavirus measures. Japan has never had a full lockdown during the pandemic and infections remained relatively low, with deaths related to COVID-19 at about 18,000 people. Under the government's state of emergency, some restaurants closed or limited their hours, and events and theaters restricted crowd sizes for social distancing. Apart from that, shortage of computer chips and other auto parts produced in other Asian nations that had severe outbreaks and strict lockdowns has hurt production at Japan's automakers, including Toyota Motor Corp., an economic mainstay. The world's third largest economy was already stagnating before the pandemic hit. So while the U.S. and many other countries are looking for ways to cut back on emergency support for their economies and tamp down inflation, Japan is looking for ways to rev its idling engines. The government has been studying restarting its GoTo Travel campaign of discounts at restaurants and stores, which is designed to encourage domestic travel. The campaign, which began last year, was discontinued when COVID cases started to surge. Some critics have said the government approach amounts to baramaki, or spreading out handouts, and will prove ineffective in generating growth in the long run. Others say the proposed cash aid leaves out families without children and other poor. The scale of the latest package also will push Japan's debt higher since it will be financed by issuing bonds. Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities, said the government needs to focus on getting spending going again, and the GoTo campaign could prove effective. Japan's economy contracted at an annual rate of 3% in the July-September period, largely because of weak consumer spending. Analysts say the economy is unlikely to rebound until next year. Japan has also promised to earmark spending for vaccine research after facing criticism over being dependent on imports for coronavirus vaccines. It has so far approved vaccines from Pfizer, Moderna and AstraZeneca. Kishida, who has promised a new capitalism for Japan, took office in October. In September, he became the head of the ruling party, replacing his predecessor Yoshihide Suga, who stepped down after just a year in office, largely because of widespread public discontent about his inept response to the pandemic. We want to support those people who are suffering because of the coronavirus, while steering our nation's sorely damaged economy back to health, Kishida said.
Source: Business Standard
SUSTAINABILITY opens up opportunities for entrepreneurs as they go beyond the local market. Michael Claparols, cofounder of Creative Definitions, said the demand for sustainable materials is growing, especially in Europe and the United States. "We saw the opportunities in terms of the environment-friendly materials and also the practices. So it gave us the impetus for the idea, it's an interesting roadmap to pursue because we feel this is the future of textiles," he said in a webinar. Claparols cited as examples handwoven fabrics made of blended yarns from cotton, pineapple, abaca and banana. "But we certainly have other fibers that we can convert to something wearable so that's where the challenge is and I think that's where the R&D (research and development) should emphasize," he said. Claparols also underscored the need to do more value-added processes in the country as it benefits the farmers, some artisans like the weavers and other stakeholders in the textile industry. "We become self-sufficient so we don't rely much on imported yarns, other materials. It's making use of our naturally grown treasures for the benefit of Filipinos," he added. Claparols also urged those who want to get into the sustainability journey to understand the market, conduct product research and implement product development. "The next step would be to understand the production process and, of course, in a much bigger view. You have to have mastery really on the value chain so it's not only one part where you have several issues but also supply of the different materials," he said. "The whole idea is really to get to know our capabilities and matching the capabilities with the market potential and, of course, incorporating new technologies not only new fibers that we have to tap but also other textile technologies. Good example would be nanotechnology that we want to look into on how to improve the characteristics of the textile, for example," he added. Claparols said there are local products that can be accepted globally with the assistance of government agencies or some private individuals. He said securing certification is also imperative. "Certifications will be needed in the future as more buyers abroad are looking at different SMEs (small and medium enterprises) here in the Philippines so we have to be ready, we have to face it," Claparols said. "It's more on how to certify our fabrics, to be sustainable because there are many angles in sustainability. It's not only environmental-friendly, can contribute to the green movement, but also the social compliance so we have to have certification for example that our workers are fairly compensated, whether we don't use child labor or whether we also embrace gender equality and there are a lot of issues so we need to get certification on that," he added.
Source: The Manila Times
Talk to anyone involved in this Dutch city’s thriving circular fashion community, and one name will inevitably come up within minutes: Fashion for Good. In less than five years of existence, this little nonprofit has built a hub for circular fashion in the Netherlands and a global network of entrepreneurs, designers, brands, manufacturers and (increasingly) Investors dedicated to ripping apart the existing fast fashion model and creating a less exploitative and more sustainable industry. To accomplish this feat, though, requires transforming the way textiles and apparel are produced, in the places where they are produced, and right now that means Asia. To that end, over the past couple of years, Fashion for Good has laid the groundwork to support the growth of sustainable manufacturing, through an accelerator program and an investment fund squarely focused on the Asian continent. In February 2020, just before the pandemic closed everything down, the organization kicked off its Asia Innovation Programme in Mumbai, which provides fashion entrepreneurs help with product and business development, mentoring and connections to brands and investors. At the same time, Fashion for Good and a group of investor partners also launched the $60 million Good Fashion Fund, a vehicle dedicated to financing disruptive production technologies in India, Bangladesh and Vietnam. Managed by the Dutch impact investment firm Fount, the fund made its first investment earlier this year, a $4.5 million loan to an Indore, India-based textile producer. "Manufacturers are the ones who can really adopt the technologies, such as material recycling and dying technologies," Katrin Ley, Fashion for Good’s managing director, told me when I met her in August at the organization’s headquarters. "They can also provide a lot of expertise to help startups advance their solutions." The historic building in Central Amsterdam that houses Fashion for Good’s offices is also home to its global accelerator and scaling programs; a co-working space for local entrepreneurs and organizations; and the Fashion for Good Museum. Instead of starting with the innovator, we start by asking, 'What is the big problem we’re trying to solve?' Launched in March 2017, with founding partner Laudes Foundation (formerly C&A Foundation), Fashion for Good welcomed the first participants in its accelerator and scaling programs that same year. While everything moved online with the pandemic, Fashion for Good typically invites 10 to 15 startups per program each year to Amsterdam for nine months. The accelerator, the model for the Asia Innovation Programme, works in much the same way as its Mumbai-based counterpart, while the scaling program aims to help companies with a market-ready product achieve commercial scale. To date, roughly 150 entrepreneurs in total have participated in the three initiatives, including 43 from the United States. Fashion for Good selects the participants based on whether their solutions address a problem identified by their manufacturing and brand partners, Ley told me. "Instead of starting with the innovator, we start by asking, 'What is the big problem we’re trying to solve?'" she said. Shikha Shah, founder and CEO of AltMat, can attest to this. A participant in the first round of the Asia program, AltMat uses a mix of mechanical, chemical and enzymatic processes to produce fiber and yarn from hemp and agricultural waste — from banana farms, for example. "The Fashion for Good program has helped us better understand what brands look for in an innovation," Shah told me in an email. "It could be a science-backed impact thesis at one end and ease of execution at the other." Implementing and scaling sustainable fashion solutions can be particularly impactful in Asia. Asian countries represented seven of the top 10 textile and apparel exporters in 2020, supplying products for established brands and fast fashion upstarts alike. And while clothing production has helped fuel the region’s economic rise over the last few decades, that growth has come at a great cost to its people and natural environment. The apparel industry has a long, well-known history of subjecting workers — primarily women and including children — to dismal and unsafe working conditions in "sweat shops," a reality that continues today. Moreover, in addition to producing 10 percent of the world’s greenhouse gas emissions, garment and textile manufacturing is responsible for local air and water pollution that often goes unchecked due to lax or poorly enforced environmental regulations. The contamination of Asia’s (and now Africa’s) rivers is especially troubling. Textile and garment manufacturers across the region — in India, in China, in Bangladesh — often dump dyeing and finishing chemicals directly into local waterways, killing fish and other wildlife and leaving the water unsafe to drink for the communities that live in the area. Residents in and around manufacturing hubs such as India’s Tirupur share stories of rivers that froth, spewing white foam like a bubble bath, after it rains, and water so toxic it is unfit even for agricultural use. All told, the fashion industry is responsible for 20 percent of the world’s industrial water pollution. A part of an exhibit on biomaterials in fashion at the Fashion for Good Museum in Amsterdam, displaying clothing made from organic cotton. Photo by CJ Clouse Manufacturers such as Pratibha Syntex, which supplies popular brands including C&A, H&M, Patagonia and Zara, are working to change this. Founded in 1997, Pratibha Syntex is a sustainably-oriented "farm-to-fashion" textile and garment producer that employs more than 6,000 people and works with a network of roughly 35,000 farmers. With the $4.5 million long-term loan from the Good Fashion Fund, the company plans to replace machinery and purchase new equipment that will reduce water, energy and chemical usage. "We are making a significant investment in state-of-the-art technologies to rejigger our processes and engineering," Shreyaskar Chaudhary, the company’s managing director, told me in an email. "A substantial part of the investment is being used to implement advanced and sustainable technologies in spinning to produce ‘Vasudha Primo,’ a regenerative cotton yarn." The loan will also finance the expansion of the company’s solar energy system and the conversion of its the wastewater treatment plant to a 100 percent biological process, he said. The fund’s founders chose to finance sustainability-oriented capital improvements for small-to-midsize manufacturers because patient capital can be difficult for these companies to come by, Ley said. The fund offers a payback period of five years on the loans, and a blended capital structure, with anchor investments from the Laudes Foundation and The Mills Fabrica, a Hong Kong-based incubator and investor. Rabobank invested in the fund in mid-2020, bringing the total size to roughly $20 million. That is still only one-third of the fund’s target size of $60 million, which illustrates the need to significantly grow investment in sustainable fashion, not only for this fund, but also for startups in need of more patient venture capital dollars. For her part, Ley characterizes the investment situation as improving but "job not done yet." "In the five years that we’ve been active in the space there’s been quite a shift. There are way more funds that previously didn’t look into fashion or where fashion didn’t fit into their portfolio," she said, adding that Fashion for Good has 150 investors in its database. With regards to the Good Fashion Fund, she has a pretty direct message for investors: "Call us."
Source: Green Biz
