The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 16 FEBRUARY, 2022

NATIONAL

INTERNATIONAL

Coming soon, a structural revamp of GST

The Union government and states will implement a proposed structural revamp of the goods and services tax (GST) in phases, keeping in mind the impact tax rate changes can have on consumption, according to two officials. The proposed revisions will include pruning tax exemptions, removing anomalies from taxing raw materials and intermediates higher than finished products, and reducing the number of GST slabs, said one of the officials, who spoke on condition of anonymity.The revisions are currently being studied by two ministerial panels and will entail implementing the tax rate changes needed in the textile industry to correct the inverted duty structure, which have been kept on hold. On 31 December, the council deferred a rate hike from 5% to 12% on several items in the textile and apparel sector, including woven fabrics of cotton, silk and wool, coir mats, apparel and clothing accessories of sale value up to ₹1,000, which was to take effect from 1 January.

Source: Live Mint

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FIEO seeks 24 months extension on validity of scrips to support exports

The Federation of Indian Export Organisations (FIEO) has urged the government to increase the validity of scrips to 24 months to boost exports and achieve the target of usd 400 billion. It has also demanded to expand the usages of RoDTEP and RoSCTL scrips to enhance the productivity of the sector. Commenting on the January 2022 trade data, FIEO President, Dr A Sakthivel said that the exports of USD 34.50 billion with a growth of 25.28 percent during the month has once again showed the resilience of India's exports sector. “The enthusiasm with which the Exim community has impressively performed has further given a boost to the sector, thereby helping the economy further move towards recovery. Reaching USD 335.88 billion with a very high growth of 46.73 percent compared to the same period previous fiscal is commendable in itself, further re-invigorating fresh impetus among the exporters of crossing the USD 400 billion exports target for the fiscal,” he added. Sectors that performed well during the month were Petroleum Products, Engineering Goods, Organic & Inorganic Chemicals, Cotton Yarn/Fabrics/Made-ups, Handloom Products, Gems & Jewellery, RMG of All Textiles, Plastic & Linoleum, Electronic Goods, Marine Products and Man-made Yarn/Fabs./made-ups etc. Out of these, almost all of them were labour-intensive sectors contributing majorly to the exports basket, further helping job creation in the country, Sakthive opined. However he has expressed concerns for imports which is clocking at USD 51.93 billion during the month with a growth of 23.54 percent.

Source: KNN India

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Emerging Apparel And Textile Industry Investment Themes To Watch Out For In 2022

The apparel and textile industry contributes 5 percent to the country's GDP from the domestic sector, whereas 7 percent is contributed from the industrial output in value terms. The apparel and textile industry is one of the most booming industries. With Indian apparel and textile being among the world's largest producers, the country is also the 6th largest exporter of apparel and textile across the globe. The apparel and textile industry contributes 5 percent to the country's GDP from the domestic sector, whereas 7 percent is contributed from the industrial output in value terms and the export earnings of the country acquire a contribution of 12 percent from the apparel and textile industry. The investments in the textile and apparel industry have seen a surge in the growth pattern in the past five years. So, here are the various emerging investment themes that are to keep a close eye on in 2022:-

Themes in Apparel Industry Hiring The apparel and textile industry has seen an immense rise in investments in the year 2021 as compared to 2020 when industry hiring is into consideration and this rise is likely to pace in the ongoing year 2022. The themes that have seen a rapid boost and had the highest investments which will follow in this ongoing year 2022 as well under the industry hiring factor are health and safety attaining a substantial investment rise in rank by 25 spots ranking on 19 followed by sensory and indulgence with an increase in investment standing on 5th spot making its place with a 10 spots increment. The other themes that climbed the industry hiring investment rank chart were smart and connected going up by 2 spots making its place on rank 2 compared to 2020 whereas social currency gained an increase in investment by having a boost of 1 spot placing it on rank 22. Investments in the industry hiring factor considering future of work saw neither a decline nor increase in investments rank compared to the year 2020 which is likely to change in the ongoing year. The themes mentioned are likely and estimated to increase in the year 2022 as the apparel and textile industry proceeds to grow further with these investments made in the past year.

Themes in Apparel Industry Deals Industry deals have seen an increase in investments in a variety of themes in the apparel and textile industry. The theme that got a lot of investments in the year 2021 is the ecommerce sector with a growth of 9 spots making its position on the 3rd rank and this sector is estimated to attract a rise in investments in the ongoing year 2022 as well. The next highest investment that got a major place in the industry deals were the Gen Z and the millennials. The apparel and textile industry acquired about an increase in millennials and Gen Z theme by 5 spots attaining a position on rank 7 in the year 2021 compared to 2020. The other theme that attained an investment growth ranking on 7th spot by a boost of 5 ranks was the online retail market shared with sensory and indulgence sector also attaining an investment growth rate of 7th position having a change in ranks by 5 spots in the year 2021 compared to 2020. Emerging economies in the year 2021 noticed neither uphill nor downhill in investment rank. This growth in investments in different themes in the industry deals is proof of the future investment deals in the following years.

Themes in Apparel Industry Patent Applications The year 2021 has seen a lot of ups and downs, even after going through a downfall the investments in the industry patent applications in the textile and apparel industry have seen a positive spike in various themes of this industry. Remote patient monitoring topped the investment criteria with an increase in 44 spots making its place on 21st rank compared to 2020. Robotics also experienced a 44 spots growth rate boost in investments in the year 2021 creating its position on rank 21 followed by virtual and augmented reality also acquiring a boost of 44 spots placing itself on rank 21. This increase in investments in the apparel and textile industry gives a ray of hope and helps the industry to increase its investment rate in the ongoing year as well. Other themes that caught the attention of the investors in the industry patent applications were the 3D printing attaining the 14th rank by having an investment growth rate by 26 spots followed by a 12 spots increment in composite materials placing itself on rank 28. This growth of investments even after a complete downslope in the industry is a positive growth that will capture the attention of many investors in the year 2022. Being one the broadest industry sector, the growth in investments has been a matter of appreciation and has managed to gather the attention of a lot of investors. So, it is important to keep a watch on the above-mentioned investment themes that are vital for future growth, as they all have the potential to grow exponentially.

Source: Indian Retailer

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India can add $20 bln to GDP if import dependence on China is halved: Report

However, share of China in Indias total merchandise imports has been steadily increasing to 16.5 per cent currently, as per the report Ecowrap.In FY21, out of the USD 65 billion of imports from China, around USD 39.5 billion were commodities and goods where PLI scheme has been announced textile, agri, electronics goods, pharmaceuticals chemicals.If, because of the PLI scheme, we can reduce our dependence on China even to the extent of 20 per cent, then we can add around USD 8 billion to our GDP. India can add USD 20 billion to its Gross Domestic Product (GDP) if the country can reduce by 50 per cent the dependence on imports from China by leveraging the production linked incentive schemes, an SBI research report said on Tuesday. In terms of imports, India continued to reduce its trade deficit with China in FY21. However, share of China in India's total merchandise imports has been steadily increasing to 16.5 per cent currently, as per the report Ecowrap. In FY21, out of the USD 65 billion of imports from China, around USD 39.5 billion were commodities and goods where PLI scheme has been announced (textile, agri, electronics goods, pharmaceuticals & chemicals). ''If, because of the PLI scheme, we can reduce our dependence on China even to the extent of 20 per cent, then we can add around USD 8 billion to our GDP. Over time, if our dependence is further reduced by 50 per cent, we can add USD 20 billion to GDP,'' the report said. In FY22 April-December period, there were 6,367 products with a total value of USD 68 billion (or 15.3 per cent of the total imports) imported by India from China. The report said it estimated the import dependence of each product on China by checking the share of Chinese imports in India's overall imports of these categories. ''The maximum aggregate value (USD 9.7 billion) is of the products in which our import dependence on China is between 50-60 per cent, although the number of products is lower. ''Although number wise the imports were highest in the category where our dependence was lowest (0-10 per cent), the value is not that high at around USD 1,894 million,'' the report said. Further, it said most important imports for FY22 so far are personal computers and parts of telephonic and telegraphic equipment, electronic integrated circuits, solar cells, urea and micro-assemblies' lithium-ion and diammonium phosphate. There are other goods also under the electrical and electronics imports. The items in the low value category are a mix of finished goods and intermediate inputs and India has a revealed comparative advantage in most of these imports, it said. ''If India wants to wean itself off its dependence on China, capabilities have to be developed in these areas, especially chemicals, textiles, footwear, so that both inputs and final consumer goods in these low value imports can be manufactured domestically,'' the report said. India should integrate more and more into the Global Value Chains (GVCs), it added.

Source: Dev Discoursure

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SEZ exports lag overall rate in April-November, shows govt data

India's overall exports rose nearly 36% YoY, while those from SEZs posted 31% growth in this period Exports from special economic zones (SEZs) grew at a slower pace as compared to the growth of overall outbound shipments from the country during the first eight months of the current fiscal year, government data showed. India exported goods and services worth $418.56 billion during April-November, up nearly 36 per cent as compared to a year earlier, while exports from SEZs witnessed a 31 per cent rise to $87.95 billion. This is a reversal in trend in at least six years. SEZ exports comprised a fifth of India’s total exports during the same time period. Growth in outbound shipments since the beginning of the fiscal year indicates that impact of the first wave of the pandemic has waned, and demand from the external market has picked up due to opening up of economies, some of which can also be attributed to pent-up demand. A look into the details of SEZ exports this year show that software and service exports account for the lion’s share at 64 per cent followed by merchandise exports that comprises manufacturing. Software and service exports grew 17 per cent, to $51.46 billion, while merchandise exports grew 62 per cent on year to $31.61 billion, signalling a recovery in manufacturing after a pandemic-induced recovery and some impact of a low base as well as commodity price increase. Share of manufacturing exports from such zones continued to remain low, while software and services exports continued to shine and did not decline sharply despite the outbreak of the pandemic. Even in manufacturing, petrochemicals and gems and jewellery comprised more than 60 per cent of exports, according to industry estimates. “Several direct tax benefits that were provided to SEZs were withdrawn over a period of time. As a result, investments got affected due to policy instability. No one thought over a period of time, there were huge policy changes and this shook the confidence of investors. Manufacturing (sector) requires long-term investment, which is not the same in case of services, which has more natural advantages of cheap labour cost and well-trained professionals in India,” According to Alok Vardhan Chaturvedi, director general of Export Promotion Council of EOUs and SEZs (EPCES). It is at this backdrop that the government is working towards rewriting the SEZ legislation. The government wants to go beyond the export-oriented approach and use SEZ infrastructure for domestic industrial activities as well. The idea is to utilise large amounts of vacant land in these SEZs to boost economic activity in the country. The SEZ Act was passed by Parliament in 2005, with export promotion as its main objective. Along with that, the idea was also to develop these zones as strategic instruments to encourage investments, create employment opportunities and develop quality infrastructure. Even as the contribution of exports from special services economic zones (SEZs) to a country’s overall exports have performed decently over the last decade, apart from lack of income tax benefits, industry officials and experts pointed out that such zones were losing their appeal also due to infrastructure bottlenecks such as connectivity issues. There is also a need for rules to be compliant with World Trade Organization (WTO) norms. In spite of a rapid rise in the number of such areas, on the request of private SEZ developers, 101 cases of de-notification were approved between 2008 and 2020. The government had attributed the reason to poor market response, lack of demand for space and withdrawal of fiscal benefits. Only 268 entities were operational, as on January 27, government data showed. Chaturvedi, however, said while new legislation on SEZ was a step in the right direction, lack of details on what it will entail can result in uncertainty. “Investors will find it difficult to come in unless there is a clarification from the government regarding the details, unless it comes in the next six months,” he said.

Source: Live Mint

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Merchandise exports rise 28% YoY to $34.5 billion in January: Govt data

Merchandise exports grew 27.54 per cent year-on-year (YoY) to $34.5 billion in January as demand for Indian products remained robust. India’s exports grew at a slower pace in January, after recording the highest-ever monthly outbound shipments of goods in December, showed data released by the commerce and industry ministry on Tuesday. However, exports remained above the $30 billion-mark for the eleventh consecutive month amid a surge in Omicron cases across the globe. Merchandise exports grew 27.54 per cent year-on-year (YoY) to $34.5 billion in January as demand for Indian products remained robust. Engineering goods, petroleum products, gems and jewellery, organic and inorganic chemicals, drugs and pharmaceuticals, were the top export categories However, outbound shipments fell 8.7 per cent sequentially. In the first 10 months of the current fiscal, exports totalled $335.88 billion, up over 46 per cent YoY. The government has set an export target of $400 billion for financial year 2021-22 (FY22). Imports, too, remained high, with shipments worth $51.93 billion coming into the country, up 23.54 per cent YoY. As a result, India was a net importer, with a trade deficit of $17.42 billion. According to Aditi Nayar, chief economist, ICRA, the curbs on mobility and the demand for gold with the onset of the third wave, helped to pull back the merchandise trade deficit to a five-month low in January. India imported gold worth $2.4 billion, down 40.5 per cent YoY. However, on a cumulative basis, inbound shipments of gold grew 94 per cent YoY to $40.4 billion from April to January, which experts believe was because of pent-up demand. Gold is the second largest component in India’s import bill. “In our view, the surge in gold imports in 2021 was driven by the pent-up demand of 2020. We believe gold imports will moderate to $30-35 billion in 2022. We expect the current account deficit to widen to a gaping $26-29 billion in Q3, before easing back to $15-17 billion in Q4,” Nayar said. Non-petroleum and non-gems and jewellery exports, also an indication of domestic industrial demand, stood at $27.1 billion in January, up 19.4 per cent YoY. Prahalathan Iyer, chief general manager, research and analysis, India Exim Bank, said while the export performance has been promising this year, imports have remained high, especially since September. “Trade deficit is likely to touch the peak level of $190 billion witnessed in FY13. Nevertheless, the trade surplus generated under the services sector is likely to be partially offsetting the deficit by more than $100 billion,” Iyer said.

Source: Business Standard

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Sri Lankan FM to visit India to formalise economic relief package

In January, India announced a USD 900 million loan to Sri Lanka to build up its depleted foreign reserves and for food imports, amid a shortage of almost all essential commodities in the country. Sri Lanka's Finance Minister Basil Rajapaksa will visit India in a fortnight to formalise India's economic relief package for the island nation facing a serious forex crisis, Foreign Minister G L Peiris said on Tuesday. In January, India announced a USD 900 million loan to Sri Lanka to build up its depleted foreign reserves and for food imports, amid a shortage of almost all essential commodities in the country. Peiris told reporters here that Rajapaksa's visit to India in December brought in many fruitful outcomes as we received USD 2.4 billion assistance from India as a result. India's intervention in Sri Lanka's economic woes was much positive and significant, he said. The close integration of our economy with India would be very beneficial, one third of our tourist arrivals are from India, the minister said. Rajapaksa's next visit would be important for Sri Lanka to clinch the USD 1 billion credit line meant for importing food and medicine, the foreign minister said. India's economic relief package for Sri Lanka, announced in January, provided a lifeline to the island nation which was facing food shortages as the foreign reserves dropped to unprecedented levels, affecting the power supply and availability of fuel. Earlier this month, an agreement to grant Sri Lanka a credit line of USD 500 million for fuel purchases was sealed which was part of the immediate economic relief package. Later, the Cabinet approved the move to purchase 40,000 metric tonnes of diesel and petrol each from the Indian Oil Corporation which the officials said was outside of this USD 500 million credit line. The Lanka IOC, the Sri Lankan subsidiary of India's oil major Indian Oil Corporation (IOC), has been in operation in Sri Lanka since 2002. India's economic assistance package in January included a currency swap of USD 400 million to improve the depleted foreign reserves, deferred Asian Currency Union settlement of USD 515 million by USD 2 million along with another Indian credit line of USD 1.5 billion to ease shortages of essentials with imports from India. The state fuel entity Ceylon Petroleum Corporation said the 40,000 metric tonnes of diesel purchased from the Indian Oil Company was due. The IOC has allowed 60 days credit for the purchase, officials said. The state energy entity Ceylon Electricity Board said a formal decision on power cuts extending through this month to April would be announced on Tuesday. The hydro-electric capacity had halved due to a drop in the water levels in the reservoirs.

Source: Business Standard

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Deepak Prakash meets Piyush Goyal on Textile Park in State

State BJP president Deepak Prakash on Tuesday met Union textile minister Piyush Goyal and raised the issue of setting up a Textile Park in the State. Prakash said that the Union Government is very much interested in setting up Textile Park in the State provided the State government provides land. The BJP leader also said that with setting up textile park in Jharkhand, large scale employment opportunities will be created which will be great advantageous to youth. Prakash urged the state government to seriously consider the proposal for setting up Textile Park in the state along with creating infrastructure such as road, power and water connectivity in the area where the government will allot land for the same purpose. Meanwhile, in another development the BJP president and party Rajya Sabha member Deepak Prakash has targeted the State Government for reducing the annual target of road construction under Pradhan Mantri Gram Sadak Yojana from 563 km to 444 km in State. The BJP leader termed the Government decision as an anti-development plank of alliance government and said that the government has no focus on improvement of infrastructure in the State. Prakash leader said that the State Government has no right to reduce the target of PMGSY road construction without the consultation of Centre. Prakash said, “If any changes have to be made, then the Prime Minister's Office should be fully informed about it. But reducing or changing the target of Pradhan Mantri Gram Sadak Yojana by going beyond the provisions of the Jharkhand Government is a serious matter.” Taking a jibe at the Jharkhand government, Prakash said that the anti-development face of the Jharkhand government, which has unnecessarily and falsely accusing the central government of discriminating against non-BJP territories at all times, has also come to the fore. Prakash said that Union Minister for Road Nitin Gadgari has assured the State Government of providing full support in construction of roads to the level of Europe and America in 3 years and to increase the annual plan of Jharkhand from Rs 675 crores to Rs 5,000 crores for the financial year 2022. Jharkhand has so far been able to construct only 110 km of road. When the central government expressed concern over this and asked the reason for the slow pace, the concerned officers and engineers of the Jharkhand government informed about this change that Jharkhand has changed the annual physical target and now the target of constructing 444 km of road this year has been fixed.

Source: Daily Pioneer

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EU will continue to partner with Nigeria on investments – Official

She said the EU was open to holding high level talks with Nigerian authorities with a view to knowing specific priorities that benefit the citizenry. The European Union (EU) Commission on Tuesday said it would continue to partner Nigeria on business opportunities, investments and other developmental issues. The Executive Vice President of the European Union (EU), Margrethe Vestager, gave the assurance during a visit to the Honourable Minister of Industry, Trade and Investments, Adeniyi Adebayo, at the Old Federal Secretariat Complex in Abuja. Ms Vestager, who is completing her 5-day working visit to Nigeria, reiterated the EU’s commitment to intensify cooperation with Nigeria in the areas of agri-food, energy & infrastructure. According to Ms Vestager, “I have trust in agriculture as it has the capacity to create access to trade channels that would otherwise be difficult.” She said the EU was open to holding high level talks with Nigerian authorities with a view to knowing specific priorities that benefit the citizenry. “We are open to holding high level talks with Nigerian authorities to know specific areas of priority especially as it pertains the industrialization of the nation. In the coming days, we hope to intensify discussion that will lead to signing investment agreements with Nigeria which will facilitate industrialization. “We have a lot of discussion going on in Europe that governments should produce in the areas that they think they have friends or next-door neighbours, and the consensus is that Nigeria qualifies because of its scope of investments and ease of doing business,” Vestager said. The EU Vice President tasked Nigerian authorities to strengthen its competition framework to encourage companies to offer consumer goods and services on the most favourable terms, in a manner that guarantees efficiency and innovation and reduced prices. Speaking during the meeting, the Minister of Industry, Trade and Investments, Adeniyi Adebayo, said the focus of his ministry was industrialization programme with an overarching goal of driving job-intensive growth of the Nigerian economy through industrialization. Mr Adebayo said the priority of the Trade and Investments Ministry is backward integration and domestication of key commodities like sugar, cassava starch, oil palm, automobile assembly and component manufacturing, cotton, textiles and garments. “Like I told you yesterday and like you have heard everywhere you have been, President Muhammadu Buhari has the goal of taking a 100 million Nigerians out of poverty over the next 10 years and we believe that that can be done through industrialization. “So, we have this backward integration policy and the whole idea is to domesticate our key commodities such as sugar, cassava starch, oil palm, automobile assembly and component manufacturing, cotton, textiles and garments. The whole idea is to be selfsufficient in these areas,” Mr Adebayo said. He said opportunities exist within our Backward Integration Program (BIP) for investments in these commodities to increase production for local consumption and exports. Expatiating on the nation’s trade policy, Mr Adebayo said Nigeria was ready to participate effectively in the African Continental Free Trade Area (AfCFTA) – on the Rules of Origin, Technical Barriers to Trade Monitoring Capability, Establishment of Trade remedy Mechanism with a view to position Nigeria as a supply chain partner to leading global economies. Mr Adebayo said Nigeria’s increasing mobile penetration rate, focused regulatory drive to boost broadband penetration and financial inclusion, are combining to create the perfect recipe for a thriving fintech sector and the adoption of digital solutions to solve everyday problems. Speaking on the problems militating the growth of Small and Medium Enterprise (SMEs), the Minister of State for Industry, Trade and Investments, Mariam Yelwaji Katagum, listed multiple taxation, high interest rates, inadequate working capital, and stiff competition from larger companies as some of the challenges confronting small businesses but said Federal Government was dealing with the challenges vide business reforms, superintended by the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice President Yemi Osinbajo. Ms Katagum explained that areas of collaboration existed with multilateral and private sector financing of Special Economic Zones through public-private-partnerships and greenfield development. “One area of collaboration which is important is support for women enterprises. I would like to know what the EU is doing in this regard. Others are credit facilitation for Micro, Small and Medium Enterprises (MSMEs) financing programs and market access for exports. “We will also require support in facilitating discussions and matchmaking on investment opportunities to large investors as well as support in providing Best-Practice review and management/navigation of key business legislative reforms and Ease of Doing Business Reforms,” Ms Katagum said.

Source: Premium Timings

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Sri Lankan Apparel and Textile Exports Rise Almost 23% in 2021

The value of the sector reached $5.42 billion after fashion exports rose 22.93 percent yearon-year in 2021, according to provisional data released by the Sri Lanka Export Development Board. Clothing exports from the South Asian Island nation increased by 25.7 percent and exports of woven fabrics surged by 99.84 percent year-on-year. Speaking at the Sri Lanka Economic Summit, Hirdaramani Group director Aroon Hirdaramani said the country’s apparel sector would target exports worth $8 billion by 2025 by increasing investment in local supply chains.

Source: Business of Fashion

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Rise in import-export, revenue, remittance propels Bangladesh growth

Bangladesh has reached close to last fiscal’s economic growth target due to a significant rise in import-export, revenue collection, remittance inflows and other economic indicators, according to finance minister AHM Mustafa Kamal, who recently explained the reason behind the rise. In fiscal 2020-21, GDP grew by 6.94 per cent against the target of 8.2 per cent. Kamal was briefing reporters after a meeting of the cabinet committee on public procurement. The finance minister said the Bangladesh Bureau of Statistics (BBS) assesses GDP in accordance with the System of National Accounts 2008 of the International Monetary Fund, and the whole world follows this method. "Whichever way you calculate, you will find the same data on GDP and per capita income. This has been possible due to our expansion of monetary policy," he was quoted as saying by Bangladeshi media reports. Kamal said while the global economy was heading for negative growth due to the coronavirus pandemic, Bangladesh's economy was still on a positive trend. "Our economy has never been down. Our inflation did not increase, the interbank exchange rate was also stable. Revenue collection is the most difficult task, but there has also been a 15 per cent growth," he said. "In the last financial year, exports rose 30 per cent and imports also increased. Remittances were also on the upward trajectory. Although remittances are not included in GDP, they contributed to the increase in per capita income," he added. Citing BBD data, he said at the end of the last fiscal, the country’s per capita income stood at $2,591.

Source: Fibre 2 Fashion

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Revised Textile, Apparel Policy approved by cabinet

The Federal Cabinet has approved revised Textile and Apparel Policy 2020-25, after resolution of dispute between Commerce Ministry and Energy Ministry on energy (electricity and RLNG) prices for the textile and apparel sector. According to official documents, the new language of para 2.2.2 of page 215 will now be as follows “energy (electricity and RLNG) will be provided to the export-oriented units/ sectors of textiles and apparel industry at regionally competitive rates throughout the policy years.” The decision further says that an exercise will be conducted by Ministry of Commerce jointly with the Ministry of Energy (Power and Petroleum Divisions) and the Finance Division during pre-budget consultative sessions annually to review the energy tariffs. “The rates may be revised on an average of energy prices for industrial consumers of regional competitors and announced in federal budget along with budgetary allocations by Finance Division as actually required by Ministry of Energy so that energy regime would remain fully funded throughout the policy years. For the captive and the cogeneration units, a separate policy will be made by the Ministry of Energy in consultation with the Ministry of Commerce and Finance Division”. The original language in the draft policy was “energy (electricity and RLNG) will be provided to the export oriented units/ sectors of textile industry at regionally competitive rates throughout the policy years without any disparity among the provinces. During FY 2021-22, electricity will be provided at US cents 9 per kWh all-inclusive and RLNG at US$ 6.5 per Mmbtu al-inclusive. However, an exercise will be conducted jointly with the Ministry of Energy (Power and Petroleum Divisions) during pre-budget consultative sessions annually to review the energy tariffs. In case of abnormal fluctuations in regional energy prices, rates may be revised on an average of energy prices for industrial consumers of the regional competitors (Vietnam, Bangladesh, etc.) and announced in Federal Budget along with budgetary allocations by Finance Division as actually required by Ministry of Energy so that energy regime would remain fully funded throughout the policy years.” In para VI (a) on page 8, “without any disparity among provinces” will be deleted. The original language was “supply of energy (electricity and RLNG) to export oriented units/ sectors of textile industry at regional competitive rates throughout the policy years without any disparity among the provinces.” On page 24, of the draft policy, ‘Financial Matrix’ will be deleted. This matrix was related to rates of RLNG and electricity. Ministry of Commerce has undertaken an exercise of through consultations with private stakeholders and proposed to set an export target of $ 20 billion for the textile and apparel industry FY 2021-22 and this target has also been approved by the Prime Minister. The export target for FY 2021-22 is further cascaded till FY 2024-25 with a projection to double textiles and apparel exports to $ 40 billion. However, strong resolve and long-term commitments from Federal Government, robust implementation of policy interventions by relevant Ministries/ Divisions/ Departments and full fiscal support from the Finance Division would necessarily be required to keep intact the due support on proposed interventions throughout the policy years to achieve set milestones. During the ensuing discussion, it was suggested that the word “energy regime” in the proposed amendment in para 2.2.2 may be substituted with “energy subsidy”. The forum agreed to the proposal. The Chairman ECC observed that there should be a separate policy for the Captive and Cogeneration Power Plants. The Finance Division indicated that the policy of captive and cogeneration power plants was pending since long. Therefore, direction should be given to the Ministry to complete it within two weeks. The ECC further directed the Petroleum Division to formulate a separate policy for captive and cogeneration units within two weeks, after due consultation with the Petroleum Division, the Finance Division and the Ministry of Commerce, and submit it to the ECC for consideration. Finance Minister who presided over the ECC meeting on February 9, 2022 also desired that a policy framework must be developed for each sector to attract long term investments.

Source: Fibre 2 Fashion

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Turkiye's textile, clothing, footwear sales rise by 77.3% YoY in Dec

Turkiye's retail sales volume rose by 15.5 per cent in December last year compared to the same month in 2020, according to the Turkish Statistical Institute (TurkStat), which recently said non-food (except automotive fuel) sales rose by 28.2 per cent in the month compared to December 2020. Textile, clothing and footwear sales rose the most, climbing 77.3 per cent from December 2020. All sub-indices rose year on year (YoY) last December. Sales by mail order and the Internet soared by 34.1 per cent YoY in December 2021. On a monthly basis, the country’s retail sales volume dropped by 2.7 per cent over the month, a news agency reported.

Source: Fibre 2 Fashion

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Textile value chain goes digital: Swiss Textile Machinery Association

In the textile industry, the entire value chain is going digital with innovation in new systems and intelligent use of data, as evidenced by the commitment of Swiss Textile Machinery Association member firms. The process of digitalisation in the textile industry is continuous – faster in some segments than others – but noticeable everywhere. “Making digitalisation our friend opens doors for business model innovations, which is essential for our industry competitiveness. The approach is to digitalise everything that can be digitalised. We won’t stop,” said André Imhof, CEO of Autefa Solutions Switzerland AG, on behalf of Swiss Textile Machinery Association members. The process of digitalisation in the textile industry today is continuous – faster in some segments than others – but noticeable everywhere. Automation is promising in many areas of finishing and making-up, where initial investments are being made. An example is folding of finished goods, previously a slow manual operation. Now, high-performance automatic folding machines from Swiss company Espritech deliver the potential for cost savings, unlocking new options for positive change at this most labour-intensive stage of production. For manufacturers in low-cost areas, the benefit results from its volume and is a simple financial one. In higher-cost segments, the application of this technology can be part of a completely new business model, taking production closer to the end customer,” Swiss Textile Machinery Association said in a press release. Pioneering in the field of digitalisation embraces social responsibility along with the introduction of bold new technological innovation. That’s a commitment made by Uster, as it aims to shape future working practices in the textile industry in areas where its systems are applied. In fabric inspection, that means combining the strengths of human capabilities with the performance of Artificial Intelligence. Automatic defect classification with machine learning technology is the next leap in digitalisation for fabric manufacturers, following on from automated detection of fabric faults, which is already well established in weaving and finishing mills. This will bring benefits in profitability for the manufacturer – as well as an improved working environment for their operatives, freed from repetitive tasks. Access to data is critical in the digitalised world of textiles. It must be flexible, fast and secure, and available to all levels of the company – worldwide. Jakob Muller serves the narrow fabrics industry ideally with a digitalisation portal, perfectly developed to provide essential production information. The portal is a browser-based production data acquisition system, with direct access to the machine controls. The system offers unique data monitoring and communication on a global framework. Digitised weave rooms present information 24/7 on desktops at the customer’s plant, as well as on tablets and smartphones remotely. Taking advantage of the latest digital technology, Rieter offers customers a unique experience. Their digital spinning suite helps spinners overcome their daily challenges and manage costs and efficiency more effectively. This all-in-one mill management system connects all the machinery, giving quick access to the right information and a holistic view, from bale to yarn. Users profit from full transparency, and are presented with recommendations based on long-standing experience and know-how. This is digitalisation at its most practical, applied to allow spinners to make the most of their installed machinery, the release added. As a solutions provider, Saurer puts digitalisation at the core of business, integral to its technology offering to customers. Some latest examples include self-optimisation of spinning machines, and a fully automated transport of cylindrical or conical cross-wound packages. Autefa Solutions uses the concept of digital twinning, visualising any real-world concept of a nonwovens line to make it easier for potential customers to grasp the idea. It’s also a big help for training and servicing needs.

Source: Fibre 2 Fashion

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