The trade fair aims to showcase the future potential of technical textiles backed by a series of knowledge sessions, live product demos and B2B networking opportunities. Bringing the technical textile industry together after a two-year span, Techtextil India 2021 opened in Mumbai today and was inaugurated by key industry and government figures. The trade fair aims to showcase the future potential of technical textiles backed by a series of knowledge sessions, live product demos and B2B networking opportunities. Reconnecting the technical textile value chain for the very first-time post- lockdown, Techtextil India 2021 has kicked off in Mumbai. The aim of show organiser Messe Frankfurt India through the new edition is to promote industry unification and support business recovery across the value chain of technical textiles. The high-profile event held at Bombay Exhibition Centre was inaugurated by: • Mrs Marja Einig, Deputy Consul General of the German Consulate • Mr Amit Agarwal, Chairman, Indian Technical Textiles Association (ITTA) • Mr Anup Rakshit, Executive Director, ITTA • Mr Avinash Misar, Vice chairman, ITTA • Mr Pramod Khosla, MD & Chairman, Khosla Profil Pvt Ltd • Mr Robin Kapoor, CEO & MD, PARK Nonwoven • Mr Raj Manek, Executive Director and Board Member, Messe Frankfurt Asia Holdings Ltd Weavetech Engineers, Lenzing Fibers India Pvt Ltd, Khosla Profile Pvt Ltd, Lucky International, Meera Industries Limited, Park Non-Woven Pvt Ltd, Sarex Chemicals, Alok Masterbatches Pvt Ltd, SICAM and Suntech Geotextile Pvt Ltd are some of the leading Indian companies participating in the 2021 fair. One of the key highlights of Techtextil India is the special showcase of German technology at an exclusive German pavilion, featuring some of the top technical textile manufacturers from the country, such as Autefa Solution Germany GmbH, DILO Systems GmbH, Emtec Electronic GmbH, Georg Sahm GmbH & Co, Karl Mayer Verwaltungsgesellschaft mbH, Merz Maschinenfabrik GmbH and Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co. On the domestic front, the nodal agency for investment promotion and facilitation for the Government of Tamil Nadu – Guidance are showcasing their prowess in technical textiles along with some of the major industry players from the state, including Cyber Textiles India Pvt Ltd, Jayashree Spun Bond, Lenzing Ag India, Liester Technologies, Loyal Textile Mills Ltd, Milltex Engineers Pvt Ltd, Superfil Products Pvt Ltd, Uster Technologies (India) Pvt Ltd. Day two is set to host the next chapter of Techtextil India Digital Symposium allowing attendees to gain insight into major growth prospects and emerging opportunities in India. Aimed at ‘Transforming India’s Technical Textile Landscape through Innovations and Investments’, the virtual platform will feature a series of sessions on Foreign Direct Investment Opportunities and Policies, Investment opportunities in Tamil Nadu, Investments & Opportunities in South Carolina for Technical Textiles sector, PLI & New Investment Opportunities, Sustainable Technical Textiles and Global sustainable approach for Textiles with Antimicrobial Performance. Moreover, attendees and buyers who are unable to attend the physical show are able to witness product demonstrations virtually and engage with exhibitors via the virtual platform. Showcasing the potential of technical textiles through the new hybrid edition, the remaining two days of the fair will set a tone for strong business restart by delivering crucial learning, sourcing and business opportunities.
Source: Hindustan Times
The Messe Frankfurt Group is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. The Group employs approximately 2,450 people at its headquarters in Frankfurt am Main and in 29 subsidiaries around the world. The company generated annual sales of approximately €257 million in 2020 after having recorded sales of €736 million the previous year. Even in difficult times caused by the coronavirus pandemic, we are globally networked with our industry sectors. We serve our customers’ business interests efficiently within the framework of our Fairs & Events, Locations and Services business fields. One of the Group’s key USPs is its closely knit global sales network, which extends throughout the world. Our comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. We are expanding our digital expertise with new business models. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services. With its headquarters in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent).
Source: Hindustan Times
The Department Related Parliamentary Standing Committee On Commerce in its report 'Augmenting Infrastructure Facilities to Boost Exports' said FTAs should be signed while balancing the interest of the domestic market and exporters. The commerce ministry should resolve issues that are hindering signing of free trade agreements (FTAs) with India's leading trade partners including the US and European Union and enter into such pacts that are beneficial for the country, according to a report of a parliamentary panel. The Department Related Parliamentary Standing Committee On Commerce in its report 'Augmenting Infrastructure Facilities to Boost Exports' said FTAs should be signed while balancing the interest of the domestic market and exporters. Indian exporters are at a disadvantage in the US and European markets while competing with other exporting countries due to absence of FTAs with the US and EU countries, it said adding there are issues that need to be addressed in negotiating free trade agreements with these regions in view of the concerns expressed by some domestic sectors. The report stated that while it is crucial to protect the domestic sector, it is equally important to address the disadvantages faced by exporters in global markets. ''The committee, therefore, recommends the Department (of Commerce) to iron out the issues that hindered the signing of FTAs with our leading trade partners and enter into trade agreements that are beneficial for our country while balancing the interest of the domestic market with that of our exporters,'' it said. Under an FTA, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they liberalise norms to enhance trade in services and boost investments. The report also said the budget allocation of Rs 12,500 crore for RoDTEP (Remission of Duties and Taxes on Export Products) scheme would be ''inadequate'' to meet its objectives and the department should engage with Ministry of Finance to provide additional allocation. Besides, the committee recommended extending the interest subsidy scheme for at least five years or till the time ''our interest rates are at par with rates of the competing countries''. Expressing concerns, the committee stated that India's exports have contracted since 2019-20, registering a degrowth of 15.73 per cent in 2020. Though the share of India has shown marginal increase, it has commanded only a meagre share of 2.15 per cent in global exports, it said adding India needs to step up its effort in export promotion, expand its export baskets and penetrate new markets to recover from its current slump and increase its share in global exports. ''India needs to revamp its overall domestic manufacturing conditions and logistics chain to enable our products to be competitive in the global markets,'' the report said and recommended the department to take appropriate measures, relook its export strategies and policies to achieve positive growth rate of exports and higher share.
Source: Economic Times
To increase the investment inflow, the Department for Promotion of Industry and Internal Trade (DPIIT) has been undertaking various initiatives and reforms such as the launching of Make in India, setting up of project development cells, creating a GIS-based Industrial Information System and National Investment Clearance Cell. The government has approved the continuation of the Scheme forInvestment Promotion (SIP) for five years (2021-26) with a financial outlay of Rs 970 crore, according to a notification of the commerce and industry ministry. The scheme comprises a number of components and activities for the promotion of investment into the country; enhancing international co-operation for promoting FDI and capacity building. To increase the investment inflow, the Department for Promotion of Industry and Internal Trade (DPIIT) has been undertaking various initiatives and reforms such as the launching of Make in India, setting up of project development cells, creating a GIS-based Industrial Information System and National Investment Clearance Cell. These activities are being supported under the Scheme for Investment Promotion, which was launched on November 11, 2008. The last implementation period of the scheme was from 2017-18 to 2019-20. It said that to sustain and take the momentum forward, it is important to continue with the activities under this scheme in a more focused and targeted manner. “Given this, continuation of the Scheme for Investment Promotion from 2021-22 to 2025- 26 has been approved” with certain components including investor targeting and facilitation; project management activities; and foreign travel, the notification has said. Activities proposed under investor facilitation include organising CEO Forums; financial investors initiatives for attracting institutional investors; support to Indian missions abroad for market entry support programmes; Investment Clearance Cell (National Single Window System); and monitoring of FDI activities, it added. “The central government has approved for continuation of the SIP, a Central Sector scheme, for the duration of five years (2021- 22 to 2025-26) with a financial outlay of Rs 970 crore,” it said.
Source: Economic Times
India will achieve its fiscal deficit target of 6.8% of gross domestic output in FY22, says K V Subramanian Chief Economic Adviser (CEA) K V Subramanian on Tuesday exuded confidence that India would achieve double-digit growth in the current financial year on the back of policy initiatives and continuing reforms. He also said the country is well poised to meet the fiscal deficit target of 6.8 per cent of GDP. "At this stage, I can say confidently that we should be able to achieve that fiscal deficit number. Any shortfalls that might happen on the disinvestment side will also be accompanied by positive surprises that have happened on tax revenue," he told reporters. The government estimates fiscal deficit at 6.8 per cent of the gross domestic product (GDP) for the current financial year ending on March 31, 2022. Subramanian, who would be demitting office after completing his three-year stint next month, added, "India is likely to have double-digit growth this year. The overall growth for the first half has been 13.7 per cent, so even a little more than 6 per cent growth in the subsequent quarters should be able to deliver double-digit growth for this year." India's GDP growth stood at 8.4 per cent in the second quarter of 2021-22, with the economy surpassing the pre-COVID level, official data showed on Tuesday. The Economic Survey 2020-21, released in January this year, had projected GDP growth of 11 per cent during the current financial year ending March 2022. The Survey had said growth will be supported by supply-side push from reforms and easing of regulations, infrastructural investments, boost to manufacturing sector through the Production-Linked Incentive (PLI) schemes, recovery of pent-up demand, increase in discretionary consumption subsequent to rollout of vaccines and pick up in credit. "We are projecting 6.5-7 per cent (growth) next year and thereafter 7 per cent plus over different scenarios. I think the impact impact of seminal second generation reforms will unfold in terms of both investment and in productivity going forward," he said. With regard to the impact of the new coronavirus variant Omicron, he said it is too early to comment. He, however, said the impact would be less than the first wave as the government already has experience of handling two waves of the pandemic. "Given that we are still amidst pandemic and the Omicron variant seems to have actually created some concern, we are all waiting for evidence to come on how infectious would it be, and how debilitating would it be as well compared to the Delta variant," he said. Asked about the impact of repeal of three farm laws on the reforms process, the CEA said it should not affect reforms in other sectors. "In a democracy like ours, political economy matters a lot and I think it is a fact that the way agriculture generates emotion other sectors do not. "Therefore, extrapolating anything that you are seeing in agriculture, be it reforms or otherwise, on to other sectors...I would not recommend, because the dynamics are quite different," he said. Parliament on Monday passed a bill to repeal the three contentious agricultural laws at the centre of protests by farmers for over a year, with the Lok Sabha and the Rajya Sabha giving their approval in quick succession amid an uproar. The government scrapped the three laws which were passed by Parliament in September last year. Prime Minister Narendra Modi had announced on November 19 that the three farm legislations -- Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act; and The Essential Commodities (Amendment) Act -- will be repealed.
Source: Business Standard
While India's economy still has to recover compared to the pre-Covid economic activities at a reasonable rate, the story around the world is no different India was the fastest growing major economy in the world during the second quarter of the current financial year. However, not all growth rates were taken on a year-on-year basis as is the practice in India. Most advanced economies calculate it on a quarter-on-quarter basis. While India's economy still has to recover compared to the pre-Covid economic activities at a reasonable rate, the story around the world is no different. For instance, commenting on China's growth, Fu Linghui, spokesperson for the National Bureau of Statistics, said, “Since entering the third quarter, domestic and overseas risks and challenges have increased.” Similarly, the world's largest economy, the US, showed a growth rate of 2.1 per cent during the quarter against 6.3 per cent in the previous quarter. The UK recovery also slowed down to just 1.3 per cent during the quarter, compared to 5.5 per cent in the previous one. Japan’s economy shrank by three per cent during this period, compared to 1.5 per cent growth during April-June, 2021.
Source: Business Standard
Commerce minister Piyush Goyal has called for restoration of benefits under the US’ Generalized System of Preferences. The Trump administration removed India from GSP list in June 2019. Indian exporters from labour-intensive sectors like textiles and leather industry are extremely keen on the restoration of trade benefits worth $6 billion under the US’ Generalized System of Preferences (GSP). Their pitch comes after Commerce and Industry Minister Piyush Goyal made a renewed push for the restoration of these benefits, which were withdrawn in June 2019 by the Donald Trump administration, at the revived India-US Trade Policy Forum (TPF) with US Trade Representative Katherine Tai last week. According to exporters from these sectors, the GSP scheme was withdrawn ‘prematurely’. The exporters said that while the withdrawal hadn’t been too debilitating and didn’t much affect the bilateral trade, a restoration would set some sectors on a better footing. Goyal batted for the restoration of trade benefits under GSP in light of the fact that the Joe Biden administration has made it clear that it won’t go for a preferential trade arrangement under a limited deal with India at this point. The former Donald Trump administration had discussed a mini-trade deal and these issues were expected to be ironed out under that. While in the past Goyal had said that lack of preferential trade with the US would not have a “significant impact” for a country of India’s size and strength, his push at the latest round of the TPF came as a surprise for those exporters who used to benefit vastly from these privileges. Established under the US Trade Act of 1974, GSP currently benefits around 119 countries through preferential duty-free treatment. India used to receive benefits worth $6 billion on 2,167 products before it was removed from the preferential list.
‘Premature GSP withdrawal caught everyone off guard’ According to the Cotton Textiles Export Promotion Council or ‘Texprocil’, an autonomous body under the Indian government that connects international buyers with appropriate suppliers, the “premature” withdrawal of GSP trade benefits created a financial burden for both Indian manufacturers and US retailers for cotton and textile products. “Total export of home textiles under GSP was to the tune of approximately $100 million in 2018, which was a large amount and can not be considered as minor. The premature withdrawal has caught the Indian exporters as well as importers in the US off guard, thereby causing financial losses and slowdown in business,” Texprocil Executive Director Siddhartha Rajagopal told ThePrint. “We sincerely hope bilateral negotiations will lead to restoration of GSP benefits on eligible products exported from India to the US,” Rajagopal added. Indian leather exporters too were adversely affected and some missed out on vital contracts with US importers due to the GSP issue. Ashish Katyal, chief executive of a Noida-based leather manufacturing company Malik Tanning Industries that works with international brands like Zara, also called for a return to the old system. “Before President Trump removed India from the GSP list, we were about to sign a threeyear contract with a major company, whose name I can’t divulge, that was worth a few million dollars. But after India was removed from the GSP list, they refused to sign,” he said. Under the GSP scheme, zero duty on products like bags and accessories attracted exporters like Katyal. “If GSP benefits such as zero duty on bags and accessories are brought back, we are sure to benefit,” he added.
Lack of preferential trade had ‘minimal’ macro-level impact Despite being withdrawn from the GSP list, India’s exports to the US continue to hover above $50 billion. According to data from the Ministry of Commerce and Industry, Indian exports to the US were worth $47.8 billion in 2017-18, $52.4 billion in FY19, $53 billion in FY20 and $51.6 billion in FY21. The US is one of the few countries with which India enjoys a trade surplus (exports exceeding imports). “Restoring GSP benefits is of course welcome. But if you look at the macro picture, the lack of these benefits has not made much of a difference. Out of $6 billion value of exports under the GSP scheme, net benefit was only about $200 million,” said Ajay Sahai, Director General and CEO of Federation of Indian Export Organisations (FIEO), a trade promotion body under the commerce ministry. However, Sahai added that if GSP benefits are restored, sectors like engineering goods, leather goods and textiles will benefit the most, and sectors like chemical and pharma will get an added boost that may increase their market share. When India was removed from the GSP list, the FIEO had said that the move would affect sectors like imitation jewellery that received average benefit of 6.9 per cent, leather articles (other than footwear) that got average benefit of 6.1 per cent, and pharmaceuticals and surgical products that used to get benefits to the tune of 5.9 per cent. The exporters’ body had also said that GSP withdrawal would also affect US manufacturers, who benefited from it on imports of parts and components, as well as US consumers, and indirectly help China.
Source: The Print
The windfall gains from oil revenues have contributed to the government's tax collection The Union government’s fiscal deficit for the April-October period came in at Rs 5.47 trillion or 36.3 per cent of the Budget estimates. In the corresponding period last year, the country’s fiscal deficit was a high 119.7 per cent. In the pre-pandemic period (AprilOctober 2019-20), the fiscal deficit was 102.4 per cent of the Budget numbers. The deficit stood at 6.4 per cent of GDP during the first half of the current fiscal year, a bit lower than the full year target of 6.8 per cent. The data released by the Controller General Accounts for the April-October period showed that the reduced fiscal deficit had come on the back of a phenomenal rise in revenue receipts and a fall in both capital and revenue expenditures. While revenue expenditures as a proportion of the Budget estimates are lower by 5.7 percentage points than the pre-pandemic level, capital expenditures are down 13.8 percentage points. In 2019-20, the government had spent 59.5 per cent of its budgeted capital expenditure by October. This year, it has only spent less than half allocated to capital expenditure (45.7 per cent). On the revenue side, the government had collected Rs 12.8 trillion, of which Rs 12.6 trillion accrued from net tax revenue, and the rest was part of the non-debt capital receipts. Of the Rs 12.6 trillion revenue, Rs 10.5 trillion was from tax revenues. Tax collections in October have reached 68.1 per cent of the Budget Estimates, almost double compared to last year’s Budget levels. Non-tax revenue, on the other hand, has reached 85 per cent of the budgeted amount. The windfall gains from oil revenues have contributed to the government’s tax collection. The fiscal deficit may slip in November as the government announced a cut in road and infrastructure cess component of the excise duty on fuel in early November. But the extension of the benefits of the free food scheme till March 2022, which is expected to cost another Rs 53,000 crore, if included in the Budget calculations, may pose a problem in terms of keeping to the Budget target. Fiscal deficit shall also be predicated upon the government achieving its divestment target for the year. “While revenues have been very buoyant and all targets on the revenue part (except disinvestment receipts) will be met, the question is whether the announcements on extension of free food scheme and other relief measures have been budgeted for or not. This is the only missing piece,” Madan Sabnavis, chief economist, CARE Ratings, told Business Standard. “There is the possibility of slippage, which would still be in the region of around 1 per cent of GDP, if the additional relief expenditure is accounted for. The revenues are not that buoyant to compensate for the relief package. Also, further restrictions on the back of the Omicron variant can also affect collections,” he added. On Tuesday, GDP numbers provided some succor as the country recorded 8.4 per cent growth in the second quarter compared to last year. A Reuters poll of 44 economists had put the year-on-year median growth at 8.4 per cent for the second quarter.
Source: Business Standard
The restarting of the economy within and outside Greece combined with the problems in the international supply chain, especially in terms of raw materials and final products from China and the broader region of Southeast Asia, continues to benefit the sectors of Greek textiles and apparel. According to figures from the Hellenic Textile and Apparel Association, the overall exports of the sector posted a considerable increase of 23.7% year-on-year in the first nine months of 2021, reaching up to 1.4 billion euros, against €1.1 billion in the same period last year. Apparel exports posted 19.2% growth within a year, reaching almost €700 million, from €582 million a year earlier. That performance is not far off pre-pandemic levels, as in January-September 2019 apparel exports had reached €720 million. Textile exports registered growth of 12.8%, coming to €330 million and matching that of 2019. The increase achieved by cotton exports was even greater, soaring 47% compared to last year and reaching €360 million. That is significantly higher than the €315 million registered in January-September 2019.
Source: Ekathimerini
The economic confidence index of Turkey which was 101.4 in October, decreased by 2 per cent in November to 99.3, as per the Turkish Statistical Institute (TurkStat). This decrease stemmed from the decreases in consumer confidence and services confidence indices, which decreased by 7.3 per cent to 71.1 and by 0.7 per cent to 119.4, respectively. On the other hand, real sector (manufacturing industry) confidence index increased by 0.6 per cent to 112, retail trade confidence index increased by 0.6 per cent to 121.9 and construction confidence index increased by 1 per cent to 93.6 in November compared to the previous month, according to TurkStat. Economic confidence index is a composite index that encapsulates consumers' and producers' evaluations, expectations and tendencies about general economic situation. The index is combined by means of a weighted aggregation of sub-indices of seasonally adjusted consumer confidence, real sector, services, retail trade and construction confidence indices. Economic confidence index above 100 indicates an optimistic outlook about the general economic situation, whereas below 100 indicates a pessimistic outlook.
Source: Fibre2 Fashion
Up to 35 per cent of European business leaders see administrative procedures as a barrier to the implementation of the European Union (EU)-Vietnam Free Trade Agreement (EVFTA), according to the 2021 White Book released recently by the European Chamber of Commerce (EuroCham) in Vietnam. EU ambassador to Vietnam Giorgio Aliberti said there is great investment potential from the EU, especially in high-value sectors. EuroCham is committed to supporting the Vietnamese government in setting up a sustainable development road map to bring better investment opportunities in the future for the business communities of the two sides, the envoy said. In early 2021, European business leaders made a positive and optimistic assessment about Vietnam’s trade and investment environment. The business climate index (BCI) of Vietnam reached 73.9 points in the first quarter of this year, the highest score recorded since the third quarter of 2019, before the COVID-19 pandemic hit global trade and investment. However, the fourth wave in many provinces and cities across the country caused the BCI to drop by nearly 30 points in the second quarter of this year to only 45.8 points. According to Aliberti, the outbreak of the pandemic led to certain disruptions during the social distancing period in Vietnam and other countries in the region. However, Vietnam has made remarkable reforms to implement the EVFTA like its efforts related to certification of origin and geographical indications with very specific improvements, he said, adding that this is a very important starting point.
Source: Fibre 2 Fashion
Part of the appeal of producing garments in Peru comes from the homegrown natural fibers, including cotton and alpaca. And while these raw materials are attractive for their quality, they also boast strong sustainability credentials. As Rizal Bragagnini, executive director of the Peru Textiles Exporters Association, explained, these fibers have the added benefit of durability. For instance, in tests, extralong staple pima cotton retains its color through at least 140 wash cycles. If garments can last and look better for longer, their impact to the environment is lessened. This is the message of Peru Textiles’ latest marketing campaign. With the tagline “Find the true value behind Peru Textiles,” the promotion invites buyers and shoppers to explore Peru’s sustainability and quality. Peru Textiles is aiming to make its production even more sustainable. In 2020, the exporters association set out to make Peru the most sustainable apparel production market in the world. Bragagnini noted that this quest to be the leader in sustainability is a work in progress. During a recent discussion with Sourcing Journal founder and president Edward Hertzman, Bragagnini and Mario Ocharan, director of export promotion at tourism and trade agency PromPeru, detailed the efforts underway to move Peru’s apparel sector in this direction, including renewable energy sources and carbon reduction. “Transparency is better than perfection right now, and we’re still not the most sustainable chain in the world. But we want to be,” said Bragagnini. One of Peru’s sustainability activities is the adoption of regenerative agriculture practices for cotton, assuring that the crop has no negative impact on the land. To compensate for an arid climate, Peru is also using amunas, which are reservoirs that collect rainwater in the hills to use in irrigation. In alpaca, Peru is focused on aspects like animal welfare and environmental responsibility. Working with academic institutions and leveraging information from standards such as the Sustainable Apparel Coalition’s Higg Index and Textile Exchange, Peru is studying the lifecycle analysis of alpaca and developing protocols for animal treatment. “[For alpaca], the Peru brand sticks to a position that it’s an exclusive and luxury brand that raised its production chain and that proposes an offer with the highest quality standards,” said Ocharan. A key pillar of Peru’s sustainability is social responsibility. Vertical supply chains give manufacturers and the brands they work with greater visibility into the working conditions at each stage of production. This protects the 700,000 people working in the garment sector, as well as their families.
Source: Sourcing Journal
