Bulk to fund CCI for cotton purchases Allocation for the textile sector will see an 8.1% increase in FY23 compared with the revised budget allocation for FY22. According to the Union Budget presented on Tuesday, of the total allocation of ₹12,382 crore for the textile sector for next financial year, ₹133.83 crore is for Textile Cluster Development Scheme, ₹100 crore for National Technical Textiles Mission, and ₹15 crore each for PM Mega Integrated Textile Region and Apparel parks scheme and the Production Linked Incentive Scheme. The Centre has also allocated ₹105 crore for FY23 towards the Raw Material Supply Scheme. The main increase is for cotton procurement by Cotton Corporation of India under the price support scheme. The Cotton Corporation will see allocation of ₹9,243 crore for the next financial year as against ₹8,440 crore in the revised budget allocation for the current year. This is for the committed liability of the government to the Corporation, said an official. On duties levied, with no changes in the 10% import duty on cotton, the industry’s expectation of measures to control cotton prices, which is the raw material, was not met. Trimmings, embellishments, labels and the like that attract 5% import duty will now be available as duty-free imports for exporters of textiles and leather garments. But, it looks like made-ups and home textiles have been excluded from the duty-free import of trimmings, etc. At present, machinery such as for knitting and weaving machines are included in the list of machines having Concessional Custom Duty of 5%. All these machines will attract 7.5% import duty.
‘Review of exemptions’ Finance Minister Nirmala Sitharaman touched upon the review of customs exemptions and tariff simplification for certain items. “This comprehensive review will simplify the customs rates and tariff structure particular for sectors like chemicals, textiles and metals, and minimise disputes,” she said. Industry sources said customs duty includes the ad valorem tax and specific duty. The specific duty is likely to be rationalised for certain fabric items and removed for some of the garments.
Source: The Hindu
Gati Shakti is an enabler and not an added impediment for infrastructure projects in the country, Union Commerce and Industry Minister Piyush Goyal said Gati Shakti is an enabler and not an added impediment for infrastructure projects in the country, Union Commerce and Industry Minister Piyush Goyal said. He also said the proposed new Special Economic Zones legislation will also see use of readymade infrastructure available with SEZs. Edited excerpts from his interaction with media: The new SEZ legislation will enable more participation from states? What would greater participation mean? T
The SEZ Act is being made more inclusive, involving states. Basically (it) is to convert SEZs -- rather than focus only on exports -- to having a focus on industrial development and service sector development. So we are going to gradually make SEZs into plug-andplay infra, which can be used for both exports and domestic industry. Those are the changes that we are bringing to the law, which we will do in four to six months. We will have to put in place some equalisation levy so that DTA (domestic tariff area) units are not at a disadvantage compared to SEZ units who have taken certain advantages in the past. We will create a level playing field. Use the robust infrastructure, the very good connectivity, the plug-and-play facility that is available in SEZs to expand their ambit and use the large infrastructure and land and readymade sheds and readymade buildings that are available to expand.
How prepared are states to participate in the Gati Shakti initiative? What is the kind of support we can expect from them? Gati Shakti is a transformative initiative. For the first time, India is planning its infrastructure story very systematically through PM Gati Shakti. It has taken various available infrastructures and created maps. We now have 360 layers in PM Gati Shakti prepared by BISAG from Ahmedabad. And they all talk to each other. PM Gati Shakti is an enabler to support all infrastructure planning, make it more robust, ensure there are no bottlenecks, no hindrances, and faster execution. For instance, if there is a mountain range, it will tell you where it is appropriate to build a tunnel that is the shortest that will ultimately speed up the project. It will be an enabler and will be a game changer in planner. We are getting huge support from states and they have understood the importance and the benefits they can also get using Gati Shakti. At a later stage, we will open it up for the private sector as well.
What about the national logistics policy? How is it different from PM Gati Shakti as it also aims to reduce logistics cost? Logistics policy has got nothing to do with PM Gati Shakti. In fact, the policy will also benefit from the scheme because our planning of logistics in the future will become much more outcome-oriented. We have seen rationalisation in Customs duty of certain items. What is the thought process behind selecting these products? In terms of Customs changes, we are using technology in a much bigger way so that Customs can be seamless, there can be less deterrence, and faster movement of import and export cargo. Second, the products that you are asking about are largely related to the capital goods sector. Our idea is we should support the domestic capital goods sector. Wherever India has abilities to supply any capital goods, we are looking at more and more indigenisation.
That is a part of Atmanirbhar Bharat, wherever high technology capital goods are required, reduce import duty to an average of 7.5 per cent, which will not increase the project cost too much but will provide incentive to domestic manufacturers. We see supply-side measures in the Budget but what about the demand-side measures? The whole Budget is about demand-side stimulation. When we spend a huge amount on capex –– Centre and states together -- there is a huge multiplier effect. All of this leads to demand for steel, cement, electrical, machinery for roadways. It is an endless demand stimulus, jobs will be created, MSMEs will see demand push. All of this will result in private sectors investing in new capacities to meet the demand that will be generated .
when can we expect e-commerce policy and consumer protection rules on e-commerce? On e-commerce nothing is on the table. We are talking to the gems and jewellery sector. They have been asking for certain support to expand their e-commerce activity. That is at an advanced stage of discussion. We will come out with details later. Other than that, the e-commerce sector is working on its own steam and there is nothing that has been demanded in the budget or that is holding back their growth and progress.
Source: Business Standard
Union Budget 2022: For electronics, customs duty rates will also be calibrated to provide a graded rate structure to facilitate domestic manufacturing The government has sought to further calibrate the customs duties in line with its Aatmanirbhar Bharat goals for value-added manufacturing and reduced imports. Presenting her fourth Union Budget on Tuesday, Finance Minister Nirmala Sitharaman said import duties have broadly been raised for finished goods for which domestic manufacturing capacity exists, while duties on industrial inputs have been brought down. "We have once again carried out an extensive consultation, including crowd-sourcing, and as a result of these consultations, more than 350 exemption entries are proposed to be gradually phased out," she said. These include exemption on certain agricultural produce, chemicals, fabrics, medical devices and drugs and medicines - the items for which the government is confident that sufficient domestic manufacturing has now been built up. Certain exemptions for advanced machinery that are not manufactured within the country will continue in the meantime. A few exemptions will also be introduced on industrial inputs such as specialised castings, ball screw and linear motion guide to encourage domestic manufacturing of a higher class of goods that India is now ready to mass-produce and ship out, Sitharaman said. The measures are set to act as enablers to the bigger policy initiatives in the export sector such as Production Linked Incentive (PLI) schemes and Phased Manufacturing Plans. Boosting exports To incentivise exports, exemptions have also been provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes that may be needed by bonafide exporters of handicrafts, textiles and leather garments, leather footwear and other goods. For electronics, customs duty rates will also be calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters. Duty concessions are also expected for parts of transformer of mobile phone chargers, and camera lens of mobile camera module and certain other items. Sitharaman said this will enable domestic manufacturing of these high-growth electronic items, which are mostly assembled in India but has seen significant value addition over the past three years. To give a boost to the gems and jewellery sector, customs duty on cut and polished diamonds and gemstones has been reduced to 5 percent. "Simply sawn diamond would attract nil customs duty. To facilitate export of jewellery through e-commerce, a simplified regulatory framework shall be implemented by June this year," the finance minister said. To disincentivise import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on imports. Tough love for capital goods Sitharaman has cut a series of duty exemptions enjoyed by capital goods manufacturers. Capital goods are products that are used in producing other goods, rather than being bought by consumers. "Several duty exemptions, even extending to over three decades in some cases, have been granted to capital goods for various sectors like power, fertiliser, textiles, leather, footwear and food processing. These exemptions have hindered the growth of the domestic capital goods sector," Sitharaman said. The National Capital Goods Policy, released in 2016, had aimed to double the production of capital goods by 2025. This would create employment opportunities and result in a sharp increase in export earnings as capital goods manufacturing is both labour intensive and churn out high-value products. The government has prescibed a similar policy action on project imports. Stharaman said project import duty concessions have also deprived the local producers of a level playing field in areas like coal mining projects, power generation, transmission or distribution projects, railway and metro projects. "Our experience suggests that reasonable tariffs are conducive to the growth of domestic industry and ‘Make in India’ without significantly impacting the cost of essential imports. Accordingly, it is proposed to phase out the concessional rates in capital goods and project imports gradually and apply a moderate tariff of 7.5 per cent," the finance minister said. Further, as a simplification measure, the government has announced that several concessional rates will be incorporated in the Customs Tariff Schedule itself, instead of prescribing them through various notifications.
Source: Deccan Herald
The sector faces competition from rival textile exporting nations, rising costs of raw materials, and a proposed hike in GST. While this year’s budget stayed clear of too many sector-specific announcements, the one sector that should have merited special attention was the textile and apparel industry– the second largest employment generator in the country. Given the backdrop of the Covid19 Pandemic and its negative impact on jobs and consumption, one would have felt that Textiles would have received special attention in this Budget from the Finance Minister. The industry is, however, far from out of the woods, facing as it does a long road to recovery on account of several headwinds. The sector has been facing tremendous competitive pressures from rival textile exporting nations such as Pakistan, China, Vietnam and Bangladesh for many years and has recently been beset with an unprecedented increase in the costs of many input raw materials which have mirrored the rise of global commodity prices. Add to this, the recent talk of a proposed hike in GST on textiles has acted as a tremendous dampener on sentiment to an industry, which was once easily the most important industrial sector in the country. Coming as this does on the back of weak consumption on account of successive local and national lockdowns–the sector was in dire need of some positive policy measures in this Budget. As the second-largest source of employment in India after agriculture, the textile industry must be viewed as a strategic sector that could be used to resuscitate both consumption and employment thus creating a multiplier effect on the economy. Given the focus on infrastructure creation and sustainable development emphasized by the Finance Minister, it might have been worth allotting funds for setting up Centralized Effluent treatment plants in textile clusters across the country to manage dyeing effluents that the industry produces in copious amounts each year. This could in addition to reducing the pollution of our water bodies also enable the industry to position itself as a leader in sustainable fashion in the global fashion industry. Another initiative that could have had a tremendous positive impact is the granting of enhanced minimum support prices on the agricultural activities linked to the sector such as Cotton and Sericulture. This would have led to long term encouragement to farmers in these sectors thus ensuring the stability of raw material prices in the years to come. As a temporary measure, at least the Government could have also looked at interest subvention schemes for loans given to this sector for a minimum period of one year–a step that could avert a pileup of bad loans and a future crisis of confidence amongst lenders towards loans given to the industry. The Textile Sector in the country is not confined to large apparel units and Mills. A sizeable majority of its capacity emanates from rural semi-organized artisans who remain uncovered by any of the government's schemes. To aid this critical section of the rural workforce, the Government could route some of the funds under its rural employment guarantee schemes (such as MGNREGA) to artisans employed either by private entrepreneurs, NGOs or cooperatives in rural areas thus empowering. Many artisans in the remote parts of the country find it difficult to stock raw materials ahead of time due to a lack of adequate working capital thus making them vulnerable to sudden price rises in the cost of raw materials. The lack of access to capital thus further incapacitates the handloom sector which faces strong competition from cheap mill made substitutes that are often imported into the country. Providing priority sector status to handloom and handicraft sectors and greater access to credit through Microfinance institutions would greatly benefit these small entrepreneurs. Finally – given the upcoming deliberations in the GST Council on the proposal to increase GST rates on textiles, one would hope that the Union Government would use its substantial voice in the Council to not only defer the rate hike but reduce GST on labour-intensive textiles such as handlooms to stimulate demand and encourage greater employment in a sector that remains probably one of the largest such sections of the economy that remain uncovered by most of the government’s economic incentives. Radharaman Hari Kothandaraman is the Founder, CEO, and Principal Designer of The House of Angadi. He is also Creative Director of the design label Advaya, and the recently-launched international luxury ready-to-wear label, Alamelu.
Source: Deccan Herald
The country's exports rose by 23.69 per cent to USD 34.06 billion in January on healthy performance by engineering, petroleum and gems and jewellery segments even as trade deficit widened to USD 17.94 billion during the month, according to provisional data of the commerce ministry. Imports in January grew by 23.74 per cent to USD 52.01 billion, the data, released on Tuesday, showed. Trade deficit widened to USD 17.94 billion during the month as against USD 14.49 billion in the same month last year. Cumulatively, exports during April-January 2021-22 rose by 46.53 per cent to USD 335.44 billion as against USD 228.9 billion in the same period last year. Imports during the period jumped by 62.68 per cent to USD 495.83 billion. Trade deficit, difference between imports and exports, stood at USD 160.38 billion during the ten months period of this fiscal as compared to USD 75.87 billion in April-January 2020. According to the data, gold imports in January dipped by 40.42 per cent to USD 2.4 billion. Crude oil imports rose by 21.3 per cent to USD 11.43 billion in January. Engineering exports rose by 24.13 per cent to USD 9.2 billion, petroleum by 74.73 per cent to USD 3.73 billion and gems and jewellery by 13.83 per cent to USD 3.23 billion. Pharmaceuticals exports, however, dipped by 1 per cent to USD 2.05 billion in January Federation of Indian Export Organisations (FIEO) Vice President Khalid Khan said that going by the current rate of growth, India will achieve USD 400 billion exports target for this fiscal. FIEO President A Sakthivel said that the additional budget for the Interest Equalization Scheme for 2021-22 and provision of Rs 2,621.50 crore for 2022-23 have provided assurance on the continuance of the scheme and "we are expecting a suitable announcement in this regard".
Source: Economic Times
The Southern India Mills Association (SIMA) has welcomed the announcements made in the Union Budget. The Southern India Mills Association (SIMA) Chairman, Ravi Sam said: “India, the second largest populous country in the world, could successfully fight against COVID-19 pandemic without compromising much on impact of the pandemic by bringing various unique and innovative relief measures and policy interventions that enabled the country to recover from the unforeseen crisis on a fast track. India could also convert certain challenges like manufacture of indigenous PPE kits into opportunities and became the second largest manufacturer of PPE kits within few months which not only protected the people of India, but also the globe. By covering over 150 crores of vaccinations during the last two years, the impact of COVID third wave and Omicron is much less in the country. The Union Government has been constantly announcing several policies that are enabling India to attract large scale investments and alleviate unemployment problems. The Union Budget 2022-23 is yet another boon for India to become superpower in the coming decades. Union Government has already announced several unique schemes apart from boldly addressing certain structural issues on taxation front and raw material and substantially enhanced the global competitiveness of the Indian textiles and clothing industry, the second largest employment provider next only to the agriculture.” He has hailed the various announcements made with regard to infrastructure development, productivity improvement, digital world, industry 4.0, skill development with hub and spoke model infrastructure facilities. It is heartening to note that the country is expected to grow at 9.27% in the coming year, a phenomenal achievement for any country in the postCOVID period, says Mr.Ravi Sam. GST collection of Rs.1,40,986 crores for the month of January 2022, the highest since the implementation of GST, is an indication for the phenomenal economic growth of the Nation. He has added that four pillars of development viz., inclusive development, productivity enhancement, energy transition and climate action would boost the overall economic growth of the Nation. Ravi Sam has welcomed the decision of extending Emergency Credit Loan Guarantee Scheme (ECLGS) till March 2023 to enable certain segments to gear up and achieve its potential growth. SIMA Chairman has said that the allocation of Rs.17,683 crores to Cotton Corporation of India (CCI) to procure cotton for the years 2021-22 and 2022-23 under Minimum Support Price will help CCI to wipe out its losses incurred for procurement of over two crores bales of cotton during the last two years that had greatly benefited the farmers to sustain the area under cotton. He has said that the steep increase in the international cotton price and consequential domestic cotton price has made the Indian farmers to fetch huge revenue for their produce during the current season, though it has impacted the cotton textiles value chain exporters. Ravi Sam said that India has started achieving substantial growth rate both in the domestic and international cotton textiles and clothing market that is likely to fuel the cotton consumption by 15% to 20% during the current season resulting in shortage of cotton. He has hoped that the Union Government would consider the demand of exempting ELS cotton and sustainable cotton from the levy of 11% import duty as such speciality cotton is not produced in the country. He has also hoped that the Government would allow duty free import of cotton to the actual users with some quantitative restrictions for the off season, as the country is likely to face shortage of cotton to the tune of 40 lakhs bales. “Considering the phenomenal growth of the industry and achieving the vision of doubling the textile business size in the next five years, it is essential for the Government to allocate necessary funds and announce Technology Mission on Cotton 2.0 on a war footing! " Ravi Sam said.
Source: Simplicity
Finance minister Nirmala Sitharaman in the Union Budget has announced an additional allocation towards the solar production-linked incentive (PLI) scheme. “Additional allocation of Rs 19,500 crore for PLI for mfg of high-efficiency modules with a priority to fully integrate manufacturing units from polysilicon to solar PV modules will be made,” the FM said. This move is to facilitate domestic manufacturing for the ambitious goal of 280 gigawatts of installed solar capacity by 2030. India Ratings and Research (Ind-Ra) last year in a note had said the solar production-linked Incentive (PLI) scheme will benefit 8-13 per cent of the photovoltaic energy plant requirement till 2029-30, and aid 20 gigawatt (GW) capacity development in the next five years. The Central Government so far has committed Rs.1.97 lakh crore and recently, PLI in the 14th sector - drones and drone components has been included with an additional layout of Rs. 120 crore. The initial 13 sectors are Electronic/Technology Products, Medical devices, Drug intermediaries and APIs, mobile manufacturing and specified electronic components, pharmaceuticals drugs, telecom & networking products, telecommunications, food products, white goods (ACs & LED), high-efficiency solar PV modules, automobiles & auto components, advance chemistry cell (ACC) battery, textile products: man-made fabrics segment and technical textiles and specialty steel.
Source: Economic Times
With no specific announcement in the Union Budget that will directly benefit the textile and clothing sector, the industry has said steps to support MSMEs and attract investments will benefit the textile industry too. However, there should be measures to control raw material prices, the industry associations said. According to Southern India Mills Association, steep increase in international cotton prices and consequential domestic cotton price has fetched the Indian cotton farmers high revenue for their produce during the current season. But, this has also impacted the cotton textile value chain. India has started achieving substantial growth rate, in the domestic and international cotton textiles and clothing market that is likely to fuel the cotton consumption by 15% to 20% during the current season (October 2021 to September 2022) resulting in shortage of cotton. The Union Government should consider the demand of exempting ELS cotton and sustainable cotton from the levy of 11% Import Duty. The Cotton Textiles Export Promotion Council expressed concern that made ups sector that contribute significantly towards exports has been left out of the facility of duty free imports of specified goods by bonafide exporters. The government should re-consider the Customs Duty imposed on cotton. The Confederation of Indian Textile Industry said certain exemptions for advanced machineries that are not manufactured in the country will continue and help the textile sector as the domestic textile sector depends on state-of-the-art textile machineries. Export of fabrics by powerloom units are expected to cross $ 8.8 billion, which is higher than the target. The Production Linked Incentive Scheme will attract investments and the announcements in the budget will help growth of the weaving sector, said the Powerloom Development and Export Promotion Council in a press release. Reinstating duty free facility for import of trimmings and embellishments will benefit garment exporters as they source these from different countries and with sharp deadlines. With measures to boost investments, the Production Linked Scheme will see more traction, according to the Apparel Export Promotion Council. The Tiruppur Exporters’ Association said review of Customs exemptions and tariff simplification will benefit protect the domestic garment industry. The budgetary allocation for Amended Technology Upgradation Fund Scheme should be enhanced from ₹ 650 crore to clear arrears under the Scheme. The Cloth Manufacturers’ Association of India said removal of Import Duty on embellishments, trimmings, buttons, etc., will make apparel exports more competitive. The apparel industry will stand to benefit with extension of the Emergency Credit Linked Guarantee Scheme. However, the enhanced outlay for the Scheme should be extended to the retail sector too. The domestic hosiery manufacturers expressed disappointment as the budget had no announcement to bring down the raw material prices or to encourage the hosiery sector, said the South India Hosiery Manufacturers Association. According to Indian Texpreneurs Federation, the industry will get better market intelligence with use of technology to assess crop, especially cotton. Extension of tax incentives for new manufacturing units for one year will motivate industries to bring in capex.
Source: The Hindu
Production-linked incentive scheme has potential to generate ₹30 lakh crore production, says finance minister Nirmala Sitharaman in her Budget speech. The production linked incentive (PLI) announced by the government in 14 sectors will create 60 lakh jobs and has potential to generate ₹30 lakh crore in production over the next five years, finance minister Nirmala Sitharaman said in the Lok Sabha while presenting the Union Budget for 2022-23. The Economic Survey has estimated the scheme will result in fresh investment of ₹19,000 crore in the textiles sector over the next five years. This is expected to create cumulative turnover of over ₹3 lakh crore and create over 7.5 lakh additional job opportunities in this sector. The PLI differs for various sectors that are next exporters, such as mobile, textile, and pharma. It could be to boost exports, while for others, it could be aimed as import substitution towards becoming Atma Nirbhar (self sufficient). The government has assigned an outlay of ₹1.97 lakh crore ($26 billion) in the previous Union Budget (2021-22) for PLI schemes. The 13 key sectors include already existing three sectors, namely mobile manufacturing and specified electronic components; critical key starting materials/drug intermediaries and active pharmaceutical ingredients; manufacturing of medical devices and 10 new key sectors which have been approved by the Union Cabinet in November 2020. The scheme was also introduced for an additional sector, drones and drone components, in September 2021.
Source: Fortune India
India is a good investment destination already with the highest GDP growth in large economies Does the Budget address the distress caused by the pandemic? Even though the pandemic has affected everyone, I feel there are many things the Budget could have addressed. There is no doubt that infra spending is a good way to create more employment and will bring down unemployment, but I feel it is still a slow and painful process. Direct cash distribution is faster and more effective, which the western world did. But India does not have those kinds of resources. Addressing mental health was the need of the hour and the announcement of 23 tech mental health centres was certainly a silver lining. Will this Budget help the economy and create jobs? It is a capex- and infra-oriented Budget. There is no doubt that an increase in capex by 35 per cent towards capital goods, solar, defence, etc will be able to bolster the economy and create jobs. The key will also be to create jobs, to support the MSME sector and the unorganised sectors. Seventy million MSMEs can create almost 200 million new jobs, if required. It will be more helpful if support can be provided to this segment. What is the best thing about the Budget? And the worst? The best is the continuity of policies and no major tinkering and surprises. The new-age investor was looking forward to something on crypto. A 30 per cent tax on it and digital rupee by the RBI is a forward-thinking decision. Considering the problems and demands of the farmers today, the focus on the digitisation of the agriculture sector is also a good move. Since one of my areas of expertise is textiles, I am keen to find out more details about several duty exemptions that have been granted to capital goods in this sector. The worst thing: No change in income tax slab rates is going to affect the middle class. It was highly anticipated, given the high inflationary scenario, that there would be some tax breaks for this segment. However, the Budget did not fulfil that aspiration. Does the Budget make India a better investment destination? India is a good investment destination already with the highest GDP growth in large economies. Venture capital and private equity invested more than Rs 5.5 lakh crore last year, facilitating one of the largest start-up and growth ecosystems. According to the FM, over 25,000 compliances were reduced and 1,486 Union laws were repealed. This is the result of our government’s strong commitment for “minimum government & maximum governance”, our trust in the public, and ease of doing business.
Source: Business Standard
Vietnam’s total import-export turnover this year is estimated to hit $740-$750 billion—a rise of 13-15 per cent over the previous year figure, government insiders say. The country grossed $668.5 billion in foreign trade last year, a year-on-year rise of 22.6 per cent, helping it maintain a trade surplus of more than $4 billion. According to a recent survey conducted by the country’s general statistics office (GSO) for processing and manufacturing enterprises, up to 83.3 per cent of respondents revealed that the number of new export orders increased or remained the same as in the fourth quarter of 2021. GSO official Nguyen Viet Phong told a news agency that there is a lot of scope room for exports to grow this year, thanks to robust export growth recorded in 2021 coupled with the country’s flexible approach to contain the COVID-19 pandemic. Economist Can Van Luc predicts Vietnam is likely to rake in between $372-$380 billion from exports this year, representing a rise of between 13-15 per cent, while imports will hover around $366-372 billion, up between 11-13 per cent compared to 2021 figures. The expert notes ongoing COVID-19 containment efforts and the enforcement of newgeneration free trade agreements (FTAs) will give fresh impetus to trade, and boost investment and tourism activities, in the context that global trade is likely to see a downward trajectory due to the outbreak of new COVID-19 strains. Another GSO official Phi Huong Nga feels import and export activities will continue to represent bright spots on the overall economic picture this year as local processors and manufacturers have enjoyed a recovery in their production activities. Statistics show Vietnam’s total import-export value in the first half of January 2022 was $27.55 billion, a fall of 20.7 per cent compared to the first half of December 2021. Experts say despite a temporary decline, trade activities are set to maintain their growth momentum this year.
Source: Fibre2 Fashion
The new UK Tradeshow Programme (UKTP) from the department for international trade (DIT) aims to help companies visit an overseas tradeshow with a view to exhibiting in future, as well as helping companies exhibit at selected events, said the non-profit organisation UK Fashion and Textile Association (UKFT). It is a pilot programme and has many restrictions. Applications will be sent out by DIT to its database and handled online by DIT who will select the events and choose the companies which are accepted for a grant. UKFT will also publicise the links. The application will ask for a lot of detail about the company, its export strategy, whether it is already committed to show (in which case it will be automatically ineligible) and DIT will decide whether the company is eligible to take part in the event and whether a grant should be given, UKFT said in a press release. UKFT will be informed of DIT’s decision but may not necessarily be consulted on either the selection and number of the events/sectors/subsectors to be covered or, indeed, the companies’ suitability for the show or market. UKFT has a very strong working relationship with DIT Sector group so we expect to inform some of these decisions but our industry traditionally works best with a large number of smaller niche events covering multiple markets and subsectors. UKFT sees strong UK groups at key international tradeshows with a wider and holistic export strategy to get companies to market as a key pivot in the campaign to rebuild the economy after COVID and make a success of Brexit. “Our industry and our association have a good understanding of trade shows, key markets and the importance of exports and believe we can demonstrate that it is the constant changes of government schemes and low budgets which hold our exporters back, compared with our competitors from other countries,” the release added. UKFT believes that tradeshows and sectoral missions when used together are a powerful tool to help smaller companies to start out in exports and larger companies to enter new markets. The government and industry should be working together to get the best joinedup deal for exporters and are committed to working with the government to make this happen.
Source: Fibre2 Fashion
The current energy crisis is impacting the competitiveness of the European textile and clothing (T&C) industry. There is a need to move towards climate neutrality, while keeping the T&C industry internationally competitive. EURATEX has asked the European Commission and Member States to urgently support the industry to avoid company closures. EURATEX has presented ten key requirements to Kadri Simson, European Commissioner for Energy, to develop such a vision. EURATEX has said that the apparel and textile industry needs a safe supply with sufficient green energy (electricity and gas) at internationally competitive prices; the transformation of industry requires access to very significant amounts of renewable energy at competitive costs. Additional investments in infrastructure will also be needed to guarantee access to new renewable energy supply, EURATEX said in a press release. Until a global (or at least G 20 level) carbon price or other means for a global level playing field in climate protection are implemented, competitive prices for green energy must be granted at European or national levels (e.g. CCfDs, reduction on levies, targeted subsidies). It also said that as the European T&C sector faces global competition mainly from countries/regions with less stringent climate ambitions, it is of utmost importance that the European textile and clothing companies are prevented from direct and indirect carbon leakage. EU-policy should support solutions, e.g. through targeted subsidies (for hydrogen, energy grids, R&D, technology roadmap studies etc.). A dedicated approach for SMEs might be appropriate as SMEs do not have the skills/know-how to further improve their energy efficiency and/or become carbon neutral. CAPEX and OPEX support will be necessary for breakthrough technologies, like hydrogen. The Fit-for-55-Package must support the European T&C industry in decarbonisation and carbon neutrality. The EU must therefore advocate a global level playing field more than before. The primary goal must be to establish an internationally uniform, binding CO2 pricing, preferably in the form of a standard at G-7/G-20 level. EURATEX also said that EU-policy must not hinder solutions, e.g. we need reasonable state aid rules (compensating the gap between national energy or climate levies and a globally competitive energy price should not be seen as a subsidy). The European T&C industry has made use of economically viable potentials to continuously improve energy efficiency over many years and decades. The obligation to implement further measures must be taken considering investment cycles that are in line with practice. Attention must be paid to the proportionality of costs without weakening the competitive position in the EU internal market or with competitors outside the EU.
Source: Fibre2 Fashion
Predicts stronger-than-average GDP growth in 2022 Despite inflationary control measures, National Retail Federation (NRF) chief economist Jack Kleinhenz said the economy is still in an expansion phase. In the February issue of NRF’s Monthly Economic Review, Kleinhenz said the economy “is running hotter than it has in a long time” even through federal intervention like stimulus checks and expanded unemployment benefits are now in the rearview mirror. The economy “is sturdy enough to stand on its own and can sustain itself toward a growth environment without the pandemic stimulus and monetary policy policies of the past two years,” the report said. Gross domestic product was up 5.7% in 2021 from 2020, the fastest growth for any calendar year since 1984. Household spending continued to grow in the fourth quarter even though not as quickly as earlier in the year. Kleinhenz expects GDP to grow between 3% and 4% in 2022, which would be faster than the 2.3% annual pace during the 2009- 2020 expansion that was ended by the pandemic. “It is not clear how Fed policy will develop, and there will be indigestion as we adjust to new policies,” Kleinhenz said. Nonetheless, both households and businesses are “in good financial shape,” COVID-19 is having less of an impact on economic activity “and there is plenty of room to raise rates without threatening the economy,” he said. With rapid economic growth running in tandem with highest inflation in nearly 40 years, the Consumer Price Index climbed 7% year-over-year as of December, according to the Bureau of Labor Statistics. In response, the Federal Reserve has signaled it will begin to nudge interest rates to bring inflation under control. Those rate hikes would make mortgages, car loans and other credit more expensive, Kleinhenz acknowledged, but “households are poised to spend” anyway, partly because of savings accumulated during the pandemic.
Source: Home Textiles Today
Thermolite EcoMade fibre for insulation battings made from 100% textile waste are being introduced by The Lycra Company, headquartered in Wilmington, Delaware. The materials are produced by recycling textile waste from cutting room floors that would otherwise have been sent to a landfill or incinerated, and transforming it into high performance fibres for insulation. Once fabric scraps are collected from garment makers, they go through a four-step process before becoming a finished product, involving depolymerization and refining, chip manufacture, fibre formation and batting and insulation production. “Our new textile waste fibre can be used in unique batting constructions to deliver outstanding warming performance,” said Arnaud Ruffin, vice president, brands and retail at The Lycra Company. “We are initially promoting the fibre in two versions – both thinloft and mid-loft battings, each made with 85% or more recycled fibres, including 50% Thermolite fibre made from recycled PET bottles and 35% made from the new textile waste product. Both deliver durability while warmth per unit weight and other insulation characteristics meet the industry’s highest expectations.”
Source: Innovation in Textiles
