In December 2021, exports stood at USD 37.8 billion, the highest-ever for any month, Additional DGFT Amiya Chandra said during a webinar organised by the Bengal Chamber of Commerce and Industry. "We are bang on target to touch USD 400 billion for the current fiscal. So far in the first nine months, the country's exports were to the tune of USD 301.38 billion," he said. India has set up a target of USD 500 billion exports for the 2022-23 fiscal, a top government official said on Friday, contending that the COVID-19 pandemic has taught the country to "reimagine" world trade. In December 2021, exports stood at USD 37.8 billion, the highest-ever for any month, Additional DGFT Amiya Chandra said during a webinar organised by the Bengal Chamber of Commerce and Industry. "We are bang on target to touch USD 400 billion for the current fiscal. So far in the first nine months, the country's exports were to the tune of USD 301.38 billion," he said. Chandra said India is targeting USD 1 trillion exports by 2027. "The apprehension that COVID-19 would lead to a sharp decline in foreign trade has turned out to be negative. However, the pandemic has taught us to reimagine world trade," he said. The fulcrum of international trade has shifted from Europe and the United States to South East Asia, the Directorate General of Foreign Trade official said. He also said that the world is moving away from multilateral trade agreements to bilateral ones, and India is presently in the process of entering into six FTAs. Chandra said going ahead, artificial intelligence and other forms of technology will become important in matters relating to trade. A separate portal for MSMEs will be launched soon, he added.
Source: Economic Times
Total bilateral trade between India and the US stood at USD 80.5 billion in 2020-21 as against USD 88.9 billion in 2019-20. India's exports to the US stood at USD 51.62 billion in 2020-21 as against USD 53 billion in 2019-20. India's imports from the US stood at USD 28.9 billion in 2020-21 as against USD 35.9 billion in 2019-20, according to commerce ministry data. After achieving enormous progress in their overall relations, the US and India must now set bold goals to take their ties to a new level and achieve the ambitious target of USD 500 billion in bilateraltrade, Atul Keshap, the new president of the influential US India Business Council (USIBC) has said. I think it's vitally important that we show that democracies can deliver; that the United States and India can be a driver of global growth, and a model for prosperity and development in the 21st century," Keshap told PTI in an interview. Keshap, a veteran American diplomat, has served in various capacities during his illustrious career with the US State Department. These included the US Ambassador to Sri Lanka and the Maldives and Principal Deputy Assistant Secretary of State. Last year he served as the Charge d'affaires of the United States mission to India, during which he helped shape the India US relationship in the first year of the Biden Administration. "I feel it's vitally critically important that we show that open societies powered by free enterprise can be relevant for their people and can help power the world out of this pandemic. I tend to agree entirely with President (Joe) Biden and Prime Minister (Narendra) Modi that the US India Partnership is a force for global good, and it's going to have a huge impact on economic growth on reducing poverty on global security and dealing with all of the challenges of our time," he said. "So, upon deeper reflection," the 50-year-old former diplomat noted, he decided that USIBC is the place where he can put the most effort into helping people of the two countries. US Chamber's president Suzanne Clark in her speech last week drove home the point that democracies need to be ambitious, and they need to think boldly. "We need to move forward on the global trade agenda. We need to ensure the prosperity of the future, especially after this pandemic," he said. During the interview, he referred to the vision of Biden, which he set as the vice president, about potentially having USD 500 billion in trade in goods and services between the United States and India. "That's a very ambitious number and I believe in it. It is a great idea to try to have ambitious targets and to be ambitious. If we in our democracies are not ambitious, then we are only at a standstill. So, we should always be improving," he said. Keshap said, last year, he was most impressed by the reaction by American business and the USIBC membership, wherein hundreds of companies rushed aid and oxygen supplies and ventilators to India in its moment of need. "We never forgot back in America that when we needed help early in the pandemic, India came to our aid. And when India needed help we did our utmost to bring aid to India," he said. That's what friends do. We have to work together. If democracies don't work together, it's going to be a much darker future for all of humanity. This is something I profoundly believe in. I'm optimistic. I'm ambitious. The Chamber is optimistic and ambitious. The member companies of USIBC are fully dedicated to seeing greater growth in trade and economic relations between the United States and India. I want to put my energy, my entrepreneurial spirit, my spirit of service and devotion to this relationship to work," he asserted. In his new role, Keshap said he wants to help meet that USD500 billion bilateral trade goal. "This is where the government and the private sector have to work together hand in hand. They have to build an argument that people of our free countries can believe in. Ours are democracies. We have to obey the will of the people: 1.7 billion Americans and Indians working together," he said. "So, we have to articulate the vision and the ambition, and we have to articulate the benefits and we have to convince all of our stakeholders that there is value in lowering trade barriers. There is value in creating strong standards. There's value in creating positive ecosystems. There is value in dealing with small technical issues that might be creating a blockage to greater prosperity between our countries," Keshap said. When Keshap, first as a US diplomat, started working on India US relationship the bilateral trade was USD20 billion, which increased exponentially to USD147 billion in 2019. "So, we're on the way. That is because of positive, friendly, mutually respectful work between bureaucrats, politicians, technical experts, corporate officials to try to make sure that that number continues to grow," he said. There are all kinds of stresses and challenges during the pandemic, including economic stress, challenges from other countries and other systems. "I think it is incumbent upon the United States in India to build the strongest possible relationship for our own safety and wellbeing. That is profoundly linked to the economic and commercial and investment relationship. The more we can talk to each other as friends to build a robust Indo Pacific supply chain that weaves us more closely together, the happier I'll be," Keshap said. The more than a dozen non-stop flights between India and the United States, he said: "is the symbol of how much growth we've had and how close are countries are getting. What I want to do is put even more energy into seeing that expand. I have a very very ambitious vision of what the US in India can achieve together." Total bilateral trade between India and the US stood at USD 80.5 billion in 2020-21 as against USD 88.9 billion in 2019- 20. India's exports to the US stood at USD 51.62 billion in 2020-21 as against USD 53 billion in 2019-20. India's imports from the US stood at USD 28.9 billion in 2020-21 as against USD 35.9 billion in 2019-20, according to commerce ministry data.
Source: Economic Times
India has launched negotiations for such pacts with the UAE, Australia and UK India is no longer signing free trade agreements (FTAs) just to join a group and instead it is looking at reciprocal access, good market conditions, and fair play in trade in both goods and services, Commerce and Industry Minister Piyush Goyal said on Friday. However, he added that FTA is a two-way traffic and industry should inculcate a greater appetite for risk taking as these pacts cannot give one-sided access for Indian goods and services alone. India has launched negotiations for such pacts with the UAE, Australia and UK and would launch talks with Canada and GCC (Gulf Cooperation Council). Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services. "India no longer signs FTAs just to be a part of a group, or for the sake of it. We are looking at reciprocal access, good market conditions and equitable and fair play in trade in goods and services. "We are looking at robust FTAs with like minded nations with values of democracy, transparency and mutual growth," Goya said at an event organised by the Merchants' Chamber of Commerce and Industry. All these agreements are going to be two-way traffic, he said, adding "we will certainly need your cooperation from industry in maintaining these bilateral fruitful discussions." Elaborating, he said in an FTA, some items will come from abroad, while some will go to those countries. "Our focus is wherever we have comparative or competitive advantage, we should look at market access and wherever the advantage is with some other country, we don't have to force the Indian consumer to buy expensive," the minister said. Replying to a question about industry's apprehensions on such trade pacts benefitting India's trading partners more, the minister said the government is engaging with industry before taking a decision on extending concessions in any sector. "But bear in mind that ultimately in the globalised world, our industry also wants access. We also want to expand labour-oriented sectors where there's good potential and we are losing market share," he noted. The minister further said India has already implemented FTAs with Japan and Korea, and it is not as if the country does not have market access. "In fact, there will be more access to different markets. Hopefully products will be available to us at competitive prices on which we can do value addition, particularly in labour oriented areas and expand our business," he added. The minister cited an example of the textiles industry, which is facing issues due to zeroduty benefits being enjoyed by Vietnam and Bangladesh in many developed markets. Goyal, who is also the textiles minister, said India is trying to get zero-duty exports to the UK for the textiles sector and also discussing the same with the European Union.
Source: Live Mint
Prime Minister Shri Narendra Modi will interact with DMs of various districts on 22nd January, 2022 at around 11 AM, via video conferencing. The Prime Minister will take direct feedback about the progress and present status of implementation of government schemes and programmes in the districts. The interaction will help review the performance and ascertain the challenges that are being faced. It is aimed at achieving saturation of various schemes by various departments in the districts in mission mode, in convergence with all stakeholders. Under the leadership of PM Modi, the Government has continuously taken several steps to overcome the asymmetry in growth & development across the country. This is in line with the commitment of the Government towards raising the living standards of all citizens and ensuring inclusive growth for all.
Source: PIB
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal today called upon the Indian Industry to inculcate a greater appetite for risk taking. Addressing the Special E-Session of Merchants’ Chamber of Commerce & Industry (MCCI), he said the Government looks forward for investments from the private sector in labour oriented sectors to create jobs, maybe plastics, footwear, textiles, leather. “Industry associations, such as yours, can partner with all stakeholders including Central & State Governments, Missions, EPCs, and help attract businesses to India & strengthen domestic industry. Let us all come together with one resolve i.e. to make India a Global leader by taking up bigger & bolder challenges,” he said. Shri Goyal said, as India celebrates Azadi ka Amrit Mahotsav, this is the time for us to reflect and prepare for India @ 2047 when we will celebrate the hundred years of Independence. “With a Cost advantage as well as the Trust advantage that Indian Industry enjoys, this is the time for India to emerge out of the shadows and truly become a global nation!,” he said. Shri Goyal said the Indian Industry must clearly focus on the principles of Quality, Productivity & become global scale operators so that we can benefit from the economies of scale. “We’ve had a very successful experience on the PLI front particularly in mobile phone manufacturing, & we are hoping to replicate it other sectors like semiconductors, container mfg, etc, 14 sectors now have PLI schemes,” he said. Shri Goyal listed three expectations for the Industry Associations to adopt: 1. Proactively participate by giving ideas / suggestions: On issues related to FTAs NTBs & market access, themes for India’s G20 presidency in 2023, resonating with our vision to make Aatmanirbhar India. 2. Highlight where we can reduce compliance burden & enhance Ease of Doing Business. Identify processes that the Govt. can digitised. Suggest areas where legal framework can be simplified & laws can be decriminalised. Legal framework can be simplified, selfregulation wherever possible. Start using the National Single Window System & give feedback on how we can provide more facilities. 3. Become self-reliant in consolidating value chains and supply chains, e.g. APIs and integrate MSMEs in forward & backward linkages. Quoting the Pirme Minister Shri Narendra Modi, Shri Goyal said, “India is a Bouquet of Hope for the World.” India is well on the path of unprecedented economic growth and is set to show the world its true potential & capacity, he said. “Despite the lockdown, India met all its international Service commitments, becoming the world's trusted partner. Today, we have an opportunity of a lifetime to propel our industry to new heights,” said Shri Goyal. “India’s Technology, Talent & Temperament is bringing hope to the world. Powered by the triple engine of Exports, Investment & the Startups, the foundation has been set for India to become a Global Powerhouse,” he added. Shri Goyal said, in our journey towards realising the dream of an Aatmanirbhar Bharat, Government has taken transformative steps to create a conducive environment for businesses: • Strengthening Coal & Mining sector: Transparent auction mechanism for private sector. • Liberalising Defence sector: 74% FDI (automatic route) & 100% (Govt. approval route), 101 defence items notified exclusively to make defence equipment indigenously, dedicated Defence Investor Cell • Transforming Telecom Sector: 100% FDI allowed, removal of penalties, rationalisation of interest rates • Several other reforms: PLI, reducing compliance burden, NIP, PM Gati Shakti NMP, Single Window, etc. Shri Goyal said India no longer signs FTAs just to be a part of a group, we are looking at reciprocal access, good market conditions and equitable and fair play in trade in Goods & Services. “We are looking at FTAs with like minded nations with values of democracy, transparency & mutual growth e.g. UAE, Australia, UK, EU, Israel, Canada, GCC. However, FTAs are a two-way traffic, need industry’s cooperation in maintaining fruitful bilateral relations,” he said. Quoting Gurudev Rabindranath Tagore, “You cannot cross the sea merely by standing and staring at the water”, Shri Goyal said the world is watching India, which is ready to take giant leaps towards transforming the nation and changing the lives of 135 crore people. Shri Goyal commended the MCCI for having emerged over the years as one of the most dynamic Chambers of Eastern India and contributing to India’s economy now for over 120 years. “As a skyscraper stands on a strong foundation, economic transformation of any nation stands on the shoulders of a robust industry. One part of holistic thinking is to move beyond traditional practises & create a resilient environment for our industries to grow,” he said. In response to a query, Shri Goyal assured release of funds under the Technology Upgradation Fund Scheme (TUFS) after due diligence and verification of pending claims. Shri Goyal also assured the Printing Industry to take up with the Finance Ministry duty waivers against Export Promotion Credit Guarantee (EPCG) obligations to such units defaulting in recent years due to the pandemic and the resultant shrinking of export orders.
Source: PIB
For the second consecutive day, IT and Industries Minister K T Rama Rao shot of letters to the union government on Friday, seeking funds for various initiatives launched by the State government in the handlooms and textiles sector. Among the demands put forth by Rama Rao in the letters to union Finance Minister Nirmala Sitharaman and union Textiles Minister Piyush Goyal were sanction of Rs 897.92 crore for Kakatiya Mega Textiles Park in Warangal towards infrastructure development, sanction of mega powerloom cluster in Sircilla, an Indian Institute of Handloom Technology (IIH-T) in Telangana, Upgradation of powerlooms under IN-SITU scheme and sanction of Block Level Handloom Clusters (BLCs) under National Handloom Development Programme (NHDP). The Minister had written several letters to the union government on these issues but the latter chose to ignore them. Seeking sanction of Rs. 897.92 Cr for infrastructure development at KMTP, he also sought early approval of the project. He also urged the Centre to finalise the policy for ‘Development of Manufacturing Regions for Textile and Apparel Sector (MRTA)’ so that projects of such scale like KMTP can benefit from it. “Telangana government is developing the country’s largest textile park, KMTP, spread over 1,200 acres in Warangal, and it is expected to house state-of the-art manufacturing facilities through the development strategy based on ‘Fiber to Fashion’ concept,” he said. The Minister also urged the Centre to sanction a mega powerloom cluster in Sircilla, and sought Rs 49.84 crore Central assistance against the projected outlay of Rs 993.65 crores towards filling gaps and to implement components including Infrastructure gaps, modernisation and expansion of production base, strengthening of value chain, market development, skill development and capacity building and administration. He said the State government, with the intention of generating employment, was setting up a Weaving Park under ‘Worker to Entrepreneur’ scheme and Apparel Park in Sircilla. In order to make Textile Park, Sircilla, even more viable, the government plans to restart the CFC at the existing Textile Park in Sircilla, he said, and pointed out that the State government was contributing a major share of Rs. 756.97 crore in the Project.
Source: Telangana Today
The textile industry in India is the only industry that provides huge employment for both skilled and unskilled labour. This industry is paramount to strengthen the country’s core business. At the same time, it makes a great contribution to employment generation, next only to the Indian retail industry, which accounts for more than 10 per cent of the country’s GDP and approximately 8 per cent of the total employment. The textile sector in India employs over 4.5 crore people directly and another 6 crore people in allied sectors, including women and rural population. The Indian textile industry is an important industry locally as well as globally. It has a huge significance in the global context and is considered as second largest industry in the production of fibre, yarn and fabric. India ranks fifth in the production of synthetic fibre. The Amended Technology Upgradation Fund Scheme (ATUFS) launched by the Government of India is being implemented for the textile industry with an outlay of ₹17,822 crore during 2016-2022 to attract investment of ₹1 lakh crore. This is expected to generate 35.62 lakh employment opportunities in the textile sector by 2022. In addition to this scheme, with the latest implementation of the PLI scheme and its aim to attract investment of ₹19,000 crore for production of high value man-made fibre (MMF), fabrics, garments and technical textiles, the industry can positively contribute to the ecosystem. Some of the key growth drivers of the industry have been foreign investments, growth of retail sector, private sector participation, and international demand for Indian cotton. The hike in FDI limit in multi brand retail is a blessing for textile industry and this has brought in more players and more consumer options. As we see international brands gaining domestic foothold, outsourcing is expected to rise exponentially. Growing population has been another vital factor contributing to the growth of employment in the sector. As per the latest labour ministry survey on the holistic picture of the job scenario in India, apart from tech industry related jobs, job openings in nine key sectors including manufacturing, IT and financial services grew at an average annual pace of 3.42 per cent since 2014. The estimates that follow a survey of 10,900 establishments showed that these sectors, including manufacturing, technology, financial services and trade, employed 30.8 million people at the end of June 2021, up 29 per cent from 23.7 million at the end of March 2014, when the survey was last conducted. Latest Govt. initiatives such as Skill India Mission, Skill Development Initiative, etc are going to consolidate the employment decisions and benefit in the development of the overall economy. In a nutshell, strategic R&D, better product standards, collaborations and joint ventures, standards set by regulatory bodies, and government support for workplace safety-related initiatives will enable the manufacturers to deliver high-quality products. With technological advancements, the overall textile exports of India during FY 2015-2016 stood at $40 billion. The industry was expected to reach $223 billion by 2021. But due to the current pandemic situation, the demand for yarn and fabric remained muted throughout the first half of financial year 2020-21. The industry expects that with normalcy in revenue across the textile value chain and with various schemes like PLI by the government announced recently, a return and huge employment is expected by the second half of the financial year 2021-22. The growing market holds tremendous potential of bringing more local manufacturers and self-help groups under the manufacturing workforce, paving path for a self-reliant economy, aligned with the vision of the Indian government.
Source: Fibre2 Fashion
Economist and former RBI governor fears 'scarring to the middle class' after pent up economic demand ends. The Indian economy has "some bright spots and a number of very dark stains" and the government should target its spending "carefully" so that there are no huge deficits, noted economist and former RBI Governor Raghuram Rajan said on Sunday. Known for his frank views, Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic. Generally, a Kshaped recovery will reflect a situation where technology and large capital firms recover at a far faster rate than small businesses and industries that have been significantly impacted by the pandemic. "My greater worry about the economy is the scarring to the middle class, the small and medium sector, and our children's minds, all of which will come into play after an initial rebound due to pent up demand. One symptom of all this is weak consumption growth, especially for mass consumption goods," Rajan told PTI in an e-mail interview. Rajan, currently a Professor at the University of Chicago Booth School of Business, noted that as always, the economy has some bright spots and a number of very dark stains. "The bright spots are the health of large firms, the roaring business the IT and IT-enabled sectors are doing, including the emergence of unicorns in a number of areas, and the strength of some parts of the financial sector," he said. On the other hand, "dark stains" are the extent of unemployment and low buying power, especially amongst the lower middle-class, the financial stress small and medium-sized firms are experiencing, "including the very tepid credit growth, and the tragic state of our schooling". Rajan opined that Omicron is a setback, both medically and in terms of economic activity but cautioned the government on the possibility of a K-shaped economic recovery. "We need to do more to prevent a K shaped recovery, as well as a possible lowering of our medium term growth potential," he said. The country's GDP is expected to grow over 9 per cent in the current financial year that ends on March 31. The economy, which was significantly hit by the pandemic, had contracted 7.3 per cent in the last fiscal. Ahead of the Union Budget, Rajan said that budgets are supposed to be documents containing a vision and he would love to see a fiveor ten-year vision for India as well as a plan for the kinds of institutions and frameworks the government intends to set up. On whether the government should go for fiscal consolidation or continue with stimulus measures, Rajan pointed out that India's fiscal situation, even coming into the pandemic, was not good and this is why the finance minister cannot spend freely now. While the government must spend where necessary at this time to alleviate the pain in the most troubled areas of the economy, he said, "We must target the spending carefully so that we do not run huge deficits." Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2022-23 in Parliament on February 1. Regarding the rising inflationary trends, Rajan said inflation is a concern in every country, and it would be hard for India to be an exception. According to him, announcing a credible target for the country's consolidated debt over the next five years coupled with the setting up of an independent fiscal council to opine on the quality of the budget would be very useful steps. "If these moves are seen as credible, the debt markets may be willing to accept a higher temporary deficit," he said, adding that to convince markets that "we will be responsible, we should strengthen the institutional support to future fiscal consolidation." Further, Rajan said that one way to expand budgetary resources is through asset sales, including parts of government enterprises and surplus government land. "We need to be strategic about what we can sell, and how we can improve the economy's performance through those sales... Once we decide to sell, though, we should move fast, something we have not done so far," he opined. Regarding the upcoming budget, Rajan said that he would be happy to see more tariff cuts and far fewer tariff increases, and far fewer sops or subsidies to specific industries. "Particularly, (I) would welcome an independent assessment of the Production Linked Incentive schemes".
Source: Business Standard
The textile industry in Surat is feeling the heat of a fire that engulfed a manufacturing unit of a company in Japan. The textile sector in the city is already reeling from the aftereffects of the pandemic which has resulted in reduced orders from clients and lower production in manufacturing units. As if the low orders were not enough, now, the textile printing labs in the city are facing a shortage of toners due to a fire in a Japanese company in Japan. Textile printing labs print modelling photos on catalogues and packaging covers for sari and dress materials. Sources said that over 100 textile printing labs in Surat use machines manufactured by a particular Japanese company. These machines use colour toners manufactured by the same company. The fire incident in the manufacturing unit of the Japanese company has resulted in a shortage of magenta colour toners used in the textile printing laboratories. This led to work coming to a halt in 40% of such labs. As a result, the printing of modelling photos that require a combination of magenta or yellow has come to a standstill. Talking to Mirror, Lalit Sharma, President, Textile Yuva Brigade, said, even a small lab produces more than 10,000 prints every day. “In over 100 labs in the city, modelling photos are made for more than 20 lakh sarees and dress materials. The fire in the Japanese company has stalled work in 40% of printing labs in Surat.” Industry sources said 95% of the printing units are dependent on the Japanese company for the toner. “Printing photos for dress materials costs anywhere between Rs 4 to Rs 4.5. The cost increases to Rs 8 if a toner from a different manufacturer is used,” the source said.
Source: Ahmedabad Mirror
The textile ministry has proposed investment and value-addition linked incentives under the scheme. Incentives for technology transfer in case of joint ventures by foreign manufacturers, and support for research and development and commercialisation, are also likely to figure in the planned scheme. The government has begun work on a new scheme with an outlay of about Rs 16,600 crore for the next five years for textile machinery manufacturing, support to technology upgradation in existing clusters and micro, small and medium enterprises (MSMEs), and support for new integrated manufacturing facilities in various segments including spinning, weaving and knitting. The new scheme, Textile Technology Development Scheme, might be announced in the upcoming Union budget. It will replace the Amended Technology Upgradation Fund Scheme (ATUFS), which ends on March 31, 2022. Beneficiaries of the production-linked incentive (PLI) scheme for textiles would not be eligible for incentives under the new programme, said officials. "The scheme is at a conceptual stage and is awaiting approvals from various levels. There might be a new name for the scheme," said an official, who did not wish to be identified. The Technology Upgradation Fund Scheme was launched in 1999 and has been modified many times since then. "We have done industry consultations, and the proposed scheme has two new components - textile machinery and integrated modern facilities," said the official. The thrust on manufacturing textile machinery is crucial as India imported shuttle-less looms, sewing machines and knitting machines, among others, and accessories such as spindles and needles worth almost Rs 72,000 crore in the past five years, mostly from China. The textile ministry has proposed investment and value-addition linked incentives under the scheme. Incentives for technology transfer in case of joint ventures by foreign manufacturers, and support for research and development and commercialisation, are also likely to figure in the planned scheme as it seeks to encourage indigenous manufacturing of machinery with a focus on the garmenting sector. Thresholds and caps for the incentives are also in the works, according to the official. "Sustainability, compliance, innovation and job creation are the focus areas of the new scheme. It aims to improve scale and technology simultaneously through integrated modern textiles manufacturing," an industry representative involved in the consultations said on condition of anonymity.
Source: Economic Times
The continuous rise in fabric and yarn prices in the past one year have hit the garment exporters who are losing out to countries like competitive Bangladesh. Vimal Shah, president of Garment Exporters Association of Rajasthan said that it has become impossible to absorb the increase of 40-50 per cent in fabric prices and remain competitive. Shah said they have written to various central ministries like finance, textile, and commerce for a calibrated policy on export of yarn. “Exports of yarn should not be at the cost of garments. In the garment industry, lakhs of people are employed. If the garment industry suffers, the revenues from yarn cannot compensate for the loss as it has limited value addition,” said Shah. He said that the domestic exporters are facing difficulties in converting queries into orders as they cannot match the price countries like Bangladesh offer. “We cannot offer the rate for orders that other countries are giving. We will have no margin given the rise in fabric prices,” added Shah. While cotton prices have escalated owing to supply constraints, hoarding by traders and speculation in the commodities markets have further raised the rates. Even the spinning mills have become the biggest gainers in the value chain. Garment manufacturers who are catering to the domestic market as well, have been impacted due to Covid lockdowns. In the past, the organized retailers, who sourced from the manufacturers, did not pay for 6-12 month.
Source: Times of India
Nguyen Tien Phong, Ambassador of Vietnam in Pakistan, on Friday proposed that building partnership in textiles and rice production would help two nations strike new avenues in world trade. “Business communities of both sides should not think that being big producers and competitors in rice and textiles, we cannot cooperate,” Ambassador Phong said talking to the officials of Federation of Pakistan Chambers of Commerce and Industry at their office. In fact, he emphasised, “we can beautifully complement each other for a win-win mechanism”. He also expressed his profound and enthusiastic desire that Preferential Trade Agreement (PTA) between Pakistan and Vitnam should be signed through fast-tracking the initiative and implemented effectively to multiply the trade volumes. Phong added that he would certainly relay the concerns and suggestions on visa regime back to their ministry’s head office in Vietnam and he also wanted the duration of business visas for Pakistani businessmen increase from six months to one year. The Vietnamese envoy maintained that the bilateral trade volume of $600 million per year was just not sufficient and it could be taken to $5-10 billion given the true potential for exponential growth over the upcoming years. For this he strongly emphasized on the visits of businessmen from Pakistan to Vietnam and vice versa. Hanif Lakhany, Vice President FPCCI, expressed his desire to expand trade relations with Vietnam as there was untapped potential in a number of sectors. Lakhany proposed that Vietnam should consider investing in smartphone and computer chips, parts and accessories, in Pakistan being one of the most advanced large-scale producers in the sector. Suleman Chawla, SVP-elect of FPCCI for 2022, said the chamber would do its best to strengthen and enrich economic and commercial ties between the two countries.
Source: The News
The Regional Comprehensive Economic Partnership (RCEP) agreement officially took effect on Jan. 1. As the world's largest trade agreement, the pact spans a market comprised of 2.2 billion people with a combined economic worth of $26.2 trillion, or 30% of the world's GDP. The RCEP, compared with the previous free trade mechanisms, can be considered more open as it contains 20 chapters relating to a wide range of categories, including trade in goods and services, investment, dispute settlement, as well as intellectual property, digital trade, e-commerce, finance, and telecommunication. With the COVID-19 pandemic going on for more than two years, the world economy has suffered its worst recession since World War II. The International Monetary Fund (IMF) said that the emergence of new highly infectious variants of COVID-19 could wipe about $4.5 trillion off the global GDP by 2025. In this regard, the world needs to work together to tide over difficulties and ensure that economic globalization becomes more open, inclusive, balanced, as well as beneficial. The Asia-Pacific region has become the most dynamic and promising economic powerhouse globally. Under the framework of the RCEP, participating countries are able to seize the opportunity to work together to deepen mutually beneficial cooperation, which is expected to help build economic resilience and contribute to global economic recovery. The mega-free trade agreement has been hailed by the Asia-Pacific region as an important step toward deeper regional integration and a renewed worldwide momentum for free trade in the wake of global uncertainties. The 15 participating members are in different development stages, from developed and emerging markets to less-developed economies. However, they have overcome difficulties and made efforts to bridge development gaps, manifesting their strong resolution to deepen economic and trade cooperation, setting a good example for the promotion of multilateralism. China, as a staunch supporter of multilateralism, has pledged to work together with other RCEP members to build the mechanism into a prominent platform for economic and trade cooperation in East Asia and maintain the stability of industrial and supply chains. China has stepped up efforts to open its door wider over the past decades, and multiple measures have been adopted to make its business environment more favorable. The effective implementation of the RCEP agreement will accelerate China's opening-up, which will facilitate more countries to tap into the market potential of the world's secondlargest economy. This will in turn promote higher regional economic integration and improve people's wellbeing overall. Dr. Sun Yuning is an adjunct research fellow with the China Center for Contemporary World Studies (CCCWS). His research interests include international relations and party politics.
Source: China.org
The import volume of textiles and apparel from Bangladesh by the United States of America (USA) keeps growing with 30.68 per cent rise last year, according to the Office of Textiles and Apparel (OTEXA), USA. The OTEXA recently published the monthly trade data of the United State of America for the period of JanuaryNovember, 2021. The US import from Bangladesh during the mentioned period has increased by 30.68% compared to the same period of 2020, whereas their global import saw 25.43% growth, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Mohiuddin Rubel on Sunday. China being the top import market for USA and having a 24% share of the USA’s total apparel import, posted 27.29% growth during this period, he said. During this period USA's import from Vietnam has grown by 12.73%. Countries which have seen significant growth are - Pakistan 59.30%, Honduras 47.10%, India 35.47%, and Mexico 29.67%.
Source: United News of Bangladesh
ARE we really what we wear, when what we wear frequently isn’t Filipino? As part of its month-long celebration of Philippine Tropical Fabrics Month this January, the Philippine Textile Research Institute (PTRI) held a talk titled “Mainstreaming Philippine Textiles,” which gave an overview of the state of Philippine textiles and what we can do to use more of it, thereby boosting local economy. There are gaps in all areas of production, from producing enough fibers for local needs, to having to import finished fabrics for local production, to using local textile for local products for local use. Take abaca, also known in international markets as Manila hemp. According to Carissa Cruz-Evangelista, Chair of the Philippine Fashion Coalition, a whopping 97% of our abaca is exported, and the country supplies 87% of the world’s abaca. Its applications include commercial textiles, used for fabric for fashion, and industrial purposes — for example, we export 94% of our pulp, and 5% cordage, and 43% of the abaca exported to the US is used for twine and cordage. However, she also emphasized that the world’s first-class abaca comes from Ecuador. “Where we are now is that there’s actually not enough abaca to supply the world demand,” she said. “We only utilize 70-80,000 hectares, and it’s not enough.” Aside from not growing enough abaca for the world’s needs, there is a lack for locally grown fibers for local needs. There are gaps in production, she said, particularly at the agricultural level, such as not producing enough cotton. “We tend to import yarns, like our cotton has been imported since there’s not enough [grown locally],” she said. “The challenge is to be able to process these indigenous fibers for the Philippines — for Philippine consumption.” So, the Philippines has to import textiles. “The issue that we have is that we import a big percent of our textile requirement for the garments and footwear industry,” Ms. CruzEvangelista pointed out. She referred to a Board of Investments (BoI) report from 2016, which saw $180 million in Philippine textile exports, but $1.2 billion in textile imports. She points to a decline in cotton planting, garment manufacturing, exportation, and an added wound from the pandemic, a decline in employment in all these fields. “The government and the private sector have created a plan to be able to work with different exporters to be strengthened through trade agreements,” she said though. SOFT POWER On a cultural level, there’s also the prevalence of Western wear. “There’s nothing wrong with Western wear, but what we hope to promote with our coalition is to wear Filipino traditional clothing as a form of cultural soft power,” she said, using Joseph Nye’s definition of soft power as “shaping preference of others through appeal and attraction, not through coercion or payments.” She cites as an example the Korean hallyu phenomenon, which saw the export of Korean culture — through food, music, and media — resulting in economic gain. “All of these have a direct impact on the economy of (South) Korea,” she said. “The challenge is for us to be able to follow the Korean model, but then improve it as Filipinos.” She pointed to 2022 television show The Broken Marriage Vow (which is a remake of a popular British TV show, Doctor Foster, which has been adapted by five other countries). The production design of Broken Marriage Vow uses local designers and fabrics extensively. She hopes that local shows could be exported, giving international exposure to the products used in the programs, much like what Korea does in K-drama. While this seems like a far-off goal, she points out that in the 1950s, under the influence of the Americans, there had been deliberate efforts to grow the local textile industry. In 1959, the country had reached its production requirement for the national level, extending this strength to the end of the 1960s. The decline in production involved the advent of the importation of cheap textiles, as promoted by the government. “What we hope would happen would that there would be more domestic preference again at this time, and support for both the artisan weavers and also the commercial textile mills.” Solutions she finds include developing the manufacturing industry, since we export so much of our raw materials. “We had exported a great deal of our pulp, of our abaca. The semi-processing should at least be done here. We should be doing our teabags and doing other products made of abaca.” She also cited RA 9242 (the Philippine Tropical Fabric Law) which prescribes the use of local fabrics for uniforms of public officials and employees, as helping the cause. “We have to do our part. That would include doing legislation, regulation for sustainability, and also for domestic preference.” Of course, it’s easy to say “#buylocal” and all the other hashtags promoting the same idea, but the change should also be institutional: she calls for the development of not only natural fibers, which we already export, but the development of chemical fiber, and smart fibers. “It’s the love of the textile and the love of our culture, but it is also the economic support for all the groups within the (fashion) ecosystem,” she said, counting the farmers who plant the fibers to the retailers who sell the clothes made from those fibers, and everyone else in between. “Even if we are inside now because of the pandemic, we still have a choice to not just purchase, not just advocate: but then, dream, and create a new kind of ecosystem.”
To help businesses understand how to communicate their green credentials while reducing the risk of misleading shoppers, the UK Competition and Markets Authority (CMA) recently published the Green Claims Code. Following an initial bedding-in period, CMA will carry out a full review of misleading green claims, both on and offline as the year begins. CMA will prioritise which sectors to review in the coming months, which could include industries where consumers appear most concerned about misleading claims—textiles and fashion, travel and transport, and fast-moving consumer goods. However, any sector where the CMA finds significant concerns could become a priority. The Code focuses on six principles based on existing consumer law. It is clear that firms making green claims “must not omit or hide important information” and “must consider the full life cycle of the product”, SMA said in a press note. The Code is part of a wider awareness campaign that CMA launched recently ahead of COP26. CMA is concerned about people being misled by environmental claims and also wants to ensure that businesses feel confident navigating the law in this area. Where there is clear evidence of breaches of consumer law, CMA may also take action before the formal review begins. The Code has been published following extensive consultation with businesses of all sizes and consumer groups.
Source: Fibre2 Fashion
The Joint Foreign Chambers of the Philippines (JFC) called on the Senate to ratify Philippine membership to the Regional Comprehensive Economic Partnership (RCEP) agreement before the forthcoming election campaign recess. The JFC is a coalition of the American, Australian-New Zealand, Canadian, European, Japanese and South Korean chambers and the Philippine Association of Multinational Companies Regional Headquarters Inc. "As business associations representing major industrialized economies, we are concerned the Philippines export industry that has been severely hit by the pandemic, will miss out unless this free trade agreement is approved by the Senate," Canadian Chamber of Commerce of the Philippines President Julian Payne said. "Without full ratification of RCEP, Philippine companies will be left behind at a competitive disadvantage in trade between RCEP members," he added. The RCEP is a free trade agreement between the 10-member Association of Southeast Asian Nations (Asean), China, Japan, Australia, New Zealand, and South Korea. RCEP represents 50 percent of the global manufacturing output; 50 percent of global automotive output; 70 percent of electronics; 26 percent of global value chain (GVC) trade volume; 60 percent GVC for electrical/machinery, petroleum/chemicals, textile/apparel, metal and transport equipment; 35 percent contribution to global exports of electronics and machineries; and the main GVC hubs of big economies such as South Korea, Japan and China. The agreement entered into force on Jan. 1, 2022 following Instruments of Ratification/Acceptance deposited to-date by 11 signatory states that include Brunei Darussalam, Cambodia, Lao PDR, Singapore, Thailand, Vietnam, Australia, China, Japan, South Korea, and New Zealand. President Rodrigo Duterte ratified the agreement in September, but membership of the Philippines in RCEP is still waiting for concurrence by the Senate. "Ratification of RCEP will compliment other welcomed economic reforms launched by the administration with the amendments to the Foreign Investment Act, Retail Trade Act, and Public Services Act to show the world that the fast-growing Philippine economy is an increasingly attractive location for new and expanding foreign investment," European Chamber of Commerce of the Philippines President Lars Wittig said. Wittig said the ratification of RCEP will be another step forward to benefit the Philippines. The American Chamber of Commerce of the Philippines and the Australian-New Zealand Chamber of Commerce of the Philippines have already issued statements strongly supporting RCEP's full ratification. Daniel Alexander, president of the Australia-New Zealand Chamber of Commerce of the Philippines, stressed that "the ratification of the RCEP will be instrumental to instilling foreign-investor confidence in the country, which will be urgently needed to revive the economy."
Source: Manila Times
