The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 04 MARCH, 2022

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INTERNATIONAL

 

PM addresses DPIIT webinar on 'Make in India for the World'

The Prime Minister, Shri Narendra Modi, today addressed post-budget webinar organized by The Department for Promotion of Industry and Internal Trade (DPIIT). This is eighth post-budget webinar addressed by the Prime Minister. Theme of the webinar was 'Make in India for the World'. The Prime Minister said that the budget has many significant provisions for Aatmnirbhar Bharat and Make in India. He said that it is not acceptable that a country like India ends up merely as a market. He pointed towards supply chain disruptions during the pandemic and other uncertainties to underline the critical importance of Make in India. On the other hand, the Prime Minister continued, positive factors like demographic dividend of young and talented population, democratic set up, natural resources should also encourage us to move towards Make in India with determination. He also referred to his call for zero defect-zero effect manufacturing that he gave for the ramparts of Red Fort. Aatmnirbharta is all the more important if we see from the prism of national security, he said. The Prime Minister said, that the world is looking at India as a manufacturing powerhouse. Manufacturing, he said, is the 15 per cent of India’s GDP, but there are infinite possibilities before Make in India and we should work with full strength to create a robust manufacturing base in India, he said. The Prime Minister gave the examples of new demand and opportunities in sectors like semi-conductors and Electric Vehicles where manufacturers should move with a sense of  removing dependencies on foreign sources. Similarly, areas like steel and medical equipment need to be focussed for indigenous manufacturing, he said. The Prime Minister stressed the difference between availability of a product as opposed to availability of made in India product in the market. He reiterated his dismay that many of the supplies for India’s various festivals are seeing foreign providers whereas they have been and can be easily provided by local manufacturers. He also emphasized that ambit of ‘Vocal for Local’ goes well beyond buying ‘diyas’ on Diwali. He asked the private sector to push the factors of vocal for local and Aatmnirbhar Bharat in their marketing and branding efforts. “Take pride in the products your company makes and instil this sense of pride in your Indian customers as well. For this some common branding can also be considered”, he added. The Prime Minister highlighted the need to find new destinations for the local products. He exhorted the private sector to enhance spending on R&D and to diversify and upgrade their product portfolio. Referring to declaration of 2023 as International Year of Millets, the Prime Minister said “The demand for millets is increasing in the world. By studying the world markets, we should prepare our mills in advance for maximum production and packaging.” The Prime Minister mentioned new possibilities due to opening up of areas like mining, coal and defence, the Prime Minister asked the participants to prepare a new strategy. “You will have to maintain global standards and you will also have to compete globally”, he said. This budget has given significant importance of MSME through credit facilitation and technology upgradation. The government has also announced a RAMP program of Rs 6,000 crore for MSMEs. The budget has also focused on developing new railway logistics products for farmers, for large industries and MSMEs. The integration of postal and railway networks will solve the problems of connectivity in small enterprises and remote areas. He said that regional manufacturing ecosystem can be strengthened by using the model of PM DevINE which has been announced for the North-East Region. Similarly, reforms in Special Economic Zone Act will provide a boost for the exports. Shri Modi also elaborated on the impact of the reforms. He said that in PLI for large scale electronics manufacturing, target of 1 lakh crore rupees worth of production was achieved in December 2021. Many other PLI schemes are in the important stages of implementation. The Prime Minister mentioned removal of 25 thousand compliances and auto renewal of licences, leading to significant reduction in the compliance burden. Similarly, digitization is bring speed and transparency in the regulatory framework. “From Common Spice Form to National Single Window System to set up a company, now you are feeling our development friendly approach at every step”, he added.  The Prime Minister called upon the captains of manufacturing to pick up some areas and work to remove foreign dependence in that. He reiterated that such webinars are unprecedented governance steps to include stakeholder voices in the policy implementation and developing a collaborative approach for proper, timely and seamless implementation of the budget provisions for better outcomes.

Source: PIB

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Govt to support Startups through better incubation centres in smaller towns: Shri Goyal

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today called for making IIT-Madras a symbol of Self Reliance & Self Confidence and flag-bearer of ‘Startup India’. Our Startups are making India proud and the Government is also working in the Advisory Council continuously with new ideas, he said. “90 Unicorns, by itself, is reflective of the confidence with which our Startups are growing. By and large, the Startups have created a good name for themselves, a very high level of credibility and I am fairly confident that going forward there will be more and more changes,” said Shri Goyal, during an interaction with the students after delivering the Keynote Address to the “E-Summit 2022- Disruption in veins” organised by IIT Madras. Shri Goyal said finance is no longer a constraint for Startups engaged in databasetechnology based solutions, besides scalable and good ideas. “Our Startups are getting valued for their innovation far better than ever before. Similarly, there’s more money on the table, whether as seed capital or initial capital or different stages of fund raising that is required for Startups, there are several possibilities. I am told, in many cases the Startups do window shopping whose money they are going to take, they chose,.. that was not something we saw a few years ago when the Startups were chasing capital,” he said. Shri Goyal said the Government is committed to support the Startups through better incubation centres in the new and emerging smaller towns and cities. “Our quality of technology and innovation is now, in many ways, world class; we are second to none in the world! That itself is a big evolution from the past,” said Shri Goyal. Quoting famous basket ball player Michael Jordan, “I’ve lost almost 300 games. 26 times I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life and that is why I succeed”, Shri Goyal encouraged the IIT students, “I wish all of you crack in life and even if you cup, rise and start again!

Source: PIB

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Piyush Goyal calls for increasing export share in GDP to 25%

According to the second advance estimate of GDP, manufacturing will make up about 14% of GDP in FY22, while exports of goods and services will account for 20.8%. Of course, the share of merchandise exports would be smaller than this. Industry needs to find out ways to raise the share of exports in the country’s gross domestic product (GDP) to about 25%, commerce and industry minister Piyush Goyal said on Thursday. He also made a fresh appeal for driving up the share of the manufacturing sector in GDP to 25%.  According to the second advance estimate of GDP, manufacturing will make up about 14% of GDP in FY22, while exports of goods and services will account for 20.8%. Of course, the share of merchandise exports would be smaller than this. Addressing the closing session of his ministry’s webinar on ‘Make in India for the World’, he stressed a five-point vision to promote manufacturing as well as exports. “How can we really take our manufacturing contribution to the GDP to 25%? Can we increase our global trade to 10% of the size of our economy? … These are ambitious but achievable targets,” he said. “Can we look at being one of the top-three nations in services exports? Can we look at supporting MSMEs (micro, small and medium enterprises) to increase their participation in foreign trade,” Goyal added. World emulating India story’ Citing the “bold reforms” undertaken by the government in recent years, Goyal said India’s Aatmanirbhar (self-reliance) initiative has inspired other nations to adopt its policies. “The world wants to emulate the India story,” he said. “Indian companies should support goods manufactured in our country. The National Single Window System needs to grow significantly,” he added. Interestingly, in the latest State of the Union Address, US President Joe Biden announced a raft of reforms, aimed at improving the lives of Americans. In his speech, the economic vision of the Biden administration included the need to ‘Make in America’ and ensure jobs creation. In recent years, the Indian government has already been aggressively promoting such ideas by seeking to ensure the ease of doing business as well as living, reduced compliance burden of India Inc and minimal government interference. For instance, India has launched the Jal Jeevan Mission to provide tap drinking water to every household. Already, almost six crore rural households have been provided tap water connection.

Source: Financial Express

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Shri Piyush Goyal calls for increasing India's share in global trade to 10%

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal has called for increasing India's share in global trade to 10% and taking our share of exports in GDP to about 25%. “These are ambitious targets, but I think doable,” said Shri Goyal, addressing the Closing session of the Post-Budget Webinar on ‘Make in India for the World’. Shri Goyal said the Prime Minister, in his Inaugural Address to the webinar, renewed emphasis to promote Manufacturing and make India self-sufficient. “Today other countries are also talking of programmes very similar to AatmaNirbhar Bharat. And I think there can be no better endorsement of the importance and the success of this vision than the fact that the world today wants to emulate the India story,” he said. Shri Goyal called for taking India among the top 3 nations in Global Services Trade. He called for supporting MSMEs in foreign trade, besides creating Top 10 R&D labs/innovation centres to position ourselves as a leader in technology during the next 25 years as India embarks upon the Amrit Kaal towards India@100. “Let all of us become job creators, let all of us work towards strengthening India’s Manufacturing ecosystem in a collaborative approach, let’s all of us make India AatmaNirbhar,” he said. Stating that the Government is looking at a more liberal regulatory regime for the Drones sector barring the Defence systems, Shri Goyal said the Industry should aim to make India become the manufacturing hub of Drones. He called for integrating Quality in full value chain and said it should not just come into picture once the final product is made.  Underlining the need to develop technical skills of tomorrow for the industry, Shri Goyal called for the need to reorient academic courses to make it relevant to the “needs of today”. “Very often, demand of time is moving very fast, change in curriculum moves much slowly, Of course, there are lot of problems, you cannot change curriculum overnight, but I think more relevant, contemporary education is equally important,... so more academic courses relevant to what you require, and for that we will need to do some research for what is being taught today and how contemporary that is,” he said. Earlier in the day, the Prime Minister Shri Narendra Modi delivered the Special Address to the webinar organised by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. Following the opening session, three consecutive sessions were held covering (i) Paradigm shift in manufacturing in India @ 100, (ii) Charting out the strategy for Realizing India’s Trillion Dollar Goal in Exports and (iii) Exploring how the MSMEs will act as the Growth Engine for Indian Economy. The closing session witnessed the Presentation of Action Plans by three senior Industry leaders, i.e, the Session Moderators, on the outcomes and the way forward. Senior officials of the Central and State Governments also participated in the deliberations.

Source: PIB

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India considers relief for exporters hit by Ukraine crisis: Sources

A government official, who declined to be named because the discussions were not public, said Indian exporters are owed about $500 million from Russia and the government may guarantee banks' letters of credit or loans to help ease the crunch. India is considering guarantees of lenders' letters of credit and soft loans for exporters hit by a cash squeeze following Russia's invasion of Ukraine and Western sanctions imposed on Moscow, two people familiar with the matter told Reuters. Indian banks are scrambling after bills for imports from Russia have started bouncing and payments for exports have been stuck. A government official, who declined to be named because the discussions were not public, said Indian exporters are owed about $500 million from Russia and the government may guarantee banks' letters of credit or loans to help ease the crunch. "Letters of credit is the most likely option," the official said. A senior banker familiar with the developments said "letter of credit or some form of bank guarantees can be given, so that trade settlement is not hampered. We are looking into it". The finance ministry and Reserve Bank of India did not immediately reply to requests for comment. CHEAP LOANS The government is also looking at having state-owned banks lend to exporters at reduced rates or provide funds to them directly up to the amount of pending payments from Russia and Ukraine. The official said the decisions could be taken in a couple of weeks. The banking source said then the central bank could follow up and "find solutions to how bilateral trades can be settled." India exported $3.33 billion worth of goods to Russia in 2021, mainly pharmaceutical products, tea and coffee, while imports totalled $6.9 billion, including defence goods, mineral resources, fertilizers, metals and precious stones. "We will first look to ease the pain of Indian exporters. Import settlement issue resolution could take some time," the government official said. India, which has deep trade and defence ties with Russia, has avoided criticising its longstanding arms supplier publicly and urged both sides to cease hostilities instead, causing frustration among its other allies including the United States.

Source: Reuters/Economic Times

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Textile industry upbeat over allotment of land in Navsari for MITRA park

Textile industry leaders in the region are upbeat over the announcement of land at Vansi Borsi of Navsari for the Mega Integrated Textile Region and Apparel (MITRA) park by cabinet minister for finance Kanu Desai in his budget speech on Thursday. The industry had been demanding allocation of land for the MITRA park ever since the scheme was announced by the central government and the city was a leading contender to get one Vansi Borsi are coastal villages near Ubhrat beach, around 42km from the city’s centre via Maroli at present. These villages are located on a road that connects the beach toMaroli town, which is on a state highway connecting the city to Navsari. If the proposed bridge between the city and Ubhrat on the Mindhola river is constructed, the distance will be further reduced to less than half. Strengthening the feasibility and growth prospects of the park, Rs 300 crore funds has been announced for the Mindhola bridge as well on Thursday. According to the requirements for MITRA park, minimum 1,000-acre land is required which is supposed to be allotted by the state government. “It is a futuristic decision by the government to allot a MITRA park near the city as it will benefit the textile industry as it is spread across south Gujarat. The integrated park will have all types of industries with modern infrastructure,” said Bharat Gandhi, chairman, Federation Of Indian Art Silk Wever Industry (FIASWI). Southern Gujarat Chamber of Commerce and Industry (SGCCI) was demanding for a MITRA Park aggressively and had also made multiple representations to the central and state government in this regard. “The park will bring investment of at least Rs 25,000 crore in the region. The finance minister also announced Rs 300 for Mindhola bridge which will ensure the success of the park,” said Ashish Gujarati, president, SGCCI. Calling it a major advantage for the textile sector in the region, Federation of Gujarat Weavers Welfare Association (FOGWWA) president, Ashok Jirawala, said, “Majority of the GIDCs are nearly 25 years old and have reached maximum level of development. The land is also costly in these GIDCs and the infrastructure too is not in position to accommodate any more major units.” “New industrial clusters will help to accommodate industries and ensure sustainable growth for a few years,” Jirawala added.

Source: Times of India

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Govt studying impact of financial sanctions on Russia: Anantha Nageswaran

V Anantha Nageswaran, India’s Chief Economic Advisor responded to the questions that seem to bother all. He says: “We have some idea of the range of impacts. But, what actually pans out would depend on the length and depth of the conflict and the impact on oil supply and price.” As Russia continues to wage war in Ukraine and now with Russia facing international sanctions, there are new concerns around how all of it will impact India. These developments become all the more concerning because many of the assumptions made in the latest Economic Survey and in the Union budget on the growth forecasts are being challenged by the current developments. For instance, the forecasts were made on expectations that the crude oil would be at $75 a barrel while it has already crossed $100 a barrel. Other than imported inflation, there are also concerns around domestic inflation and the worries around the fiscal front. The fiscal deficit for 2021-22 is at 6.9 per cent and the high debt to GDP ratio of 60 per cent. V Anantha Nageswaran, India’s Chief Economic Advisor responded to the questions that seem to bother all. He says: “We have some idea of the range of impacts. But, what actually pans out would depend on the length and depth of the conflict and the impact on oil supply and price.” This and much more in this email interview: What is your assessment of the impact of the Russia-Ukraine developments on the Indian economy? And despite the forex reserves, what implications worry you on growth, inflation and balance of payments? It is too soon to make a quantitative assessment of the impact on the economy. While we know that there would be an impact on the trade balance, growth and inflation if oil prices persist at high levels for long, it is difficult to be more specific than that at this stage Simulations and scenarios have already been done by many economists in the private sector. I would also refer you to the RBI Mint Street Memo No. 17 published in 2019 which examined the impact of crude price shock on India’s current account deficit, inflation and fiscal deficit. So, we have some idea of the range of impacts. But, what actually pans out would depend on the length and depth of the conflict and the impact on oil supply and price. In view of the sanctions on Russia, what impact you see for India and what options does India have? So far, the sanctions have been on the financial sector, financial institutions and the central bank. Of course, there will be an impact on the procurement of certain goods and services from Russia. I am sure the impact and the options are being studied at the appropriate levels of the government. In the light of the pressures on domestic inflation, the imported inflation is adding to the worries, so what are we doing to guard ourselves in the short term and in the medium term? These are still relatively early days in the conflict. Of course, shipping and air freight cost too might rise globally. The impact on inflation would depend on the persistence and level of the oil price. Policy decisions would follow based on a judgement on the above. During the pandemic, the government studied the situation carefully and came up with its economic policy responses in a calibrated manner rather than rushing into them. That has served India well. How is a dovish monetary policy best suited under the current environment? I don’t comment on monetary policy. We have a high debt to GDP ratio of 60 per cent and interest payments over 42.7 per cent of the revenues, inflationary pressures, slower growth as the third quarter GDP numbers showed and a high fiscal deficit, how concerned are you about the rupee ? Concern over the Indian rupee is very low down the list due to various reasons. The most important reason is the extent of foreign exchange reserves we have, the size of the current account deficit and the strong export performance hitherto. FII selling from equities has been happening already, before the conflict began. Hence, there is no pent-up exodus on that front too, for now. In the light of the recent developments, India’s stable macro fundamentals and medium to long-term potential will be assessed appropriately by investors. They are India’s strong points. We are today in a situation of labour surplus market with most sectors seeing productivity improvements. Even the SMEs are relying on productivity enhancing technology interventions, how relevant is the reliance on a Keynesian multiplier model suitable? Not just because, India already has a higher rural road density next only to France and well ahead of China and also because there is real need for govt intervention in so many areas where we see clear market failures? It is an interesting question. Some of the trends that you mention are long-term and they evolve gradually over time. That does not preclude cyclical responses to address nearterm economic imperatives. That is my first response. Second, what the successive budgets have done is text-book economics. When consumption demand is weighed down by near-term anxieties and uncertainties – related to health and otherwise – the private sector would wait to see a clearer demand outlook before investing. Hence, the government stepping in with capital expenditure is an appropriate response for the situation that the Indian economy finds itself in. Further, infrastructure requirement is a long-term need and the government is facilitating it from the side of the State governments as well.

Source: Financial Express

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Indian trade, current account deficit seen widening, rupee under pressure

India's trade and current account deficits are likely to widen, putting pressure on the rupee, as global oil prices surge and the domestic economy reopens from a third wave of the pandemic, economists and analysts said. India's trade deficit widened sharply to $21.19 billion in February compared to $17.94 billion the previous month, preliminary data showed. "The recent increase in crude oil prices beyond $110/barrel and simultaneous revival of domestic demand pose headwinds to India's current account balance as import bill will likely remain elevated," Barclays economist Rahul Bajoria said. Oil prices have hit their highest levels in almost a decade. Indian exports dipped to $33.81 billion from $34.06 billion, while imports rose to $55.01 billion from $52.01 billion. Exports could dip amid global trade disruptions due to the Ukraine crisis but analysts the impact was likely to be small, with Russia accounting for just 0.8% of India's exports. "If the slowdown in Russia's economy spills over more broadly, risks to export demand would increase," Nomura economists Sonal Varma and Aurodeep Nandi wrote. "On the flip side, higher commodity prices should help with commodity-based exports like petroleum products and metals. On balance, we believe higher commodity prices will play a key role in further widening the trade deficit," they said. Emkay Global economist Madhavi Arora said the current account deficit as a proportion of gross domestic product could rise by 0.5% with each $10 barrel increase in crude prices. She said that with oil above $100 a barrel, the current account deficit could exceed 2.5% of GDP in 2022/23. "A higher twin deficit, global risks and a change in risk appetite could keep the pressure on the rupee intact," she said. The rupee is expected to trade in a range of 75 to 76.50 to the dollar in the near term with India's large foreign exchange reserves of nearly $633 billion providing a buffer and preventing sharp depreciation. "While funding requirements are likely to be manageable, we think capital inflows will barely offset the increasing deficit; hence, the (balance of payment) surplus is likely to be small," Bajoria said.

Source: Reuters/Economic Times

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Sangam India Limited– Applying sustainable solutions in the textile industry

SIL has already installed 2 Solar power plants of 5 MW that on average helps them to bring down their carbon footprint by at least 20% per annum. The company also successfully runs 3 ETPs and 4 STPs to reduce industrial water contamination and reclaim the water for favourable purposes. Sangam India Ltd - one of the foremost producers in PV dyed yarn, cotton and OE yarn and also ready to stitch fabric, based out of Bhilwara, Rajasthan plans to become one of the most sustainable companies in the Indian textile sector. The BSE and NSE listed company has created a roadmap of becoming an environment-friendly player by focusing on initiatives like using organic/recycled raw materials, reducing consumption of water, energy and chemicals that pose a huge challenge for the sector at every stage of the value chain. To begin with, SIL has already installed 2 Solar power plants of 5 MW that on average helps them to bring down their carbon footprint by at least 20% per annum. The company also successfully runs 3 ETPs (Effluent treatment plant) and 4 STPs (Sewage treatment plant) to reduce industrial water contamination and reclaim the water for favourable purposes. Going forward, SIL also plans to increase the use of recycled fibre, leading to lesser consumption of plastic waste by using it as a raw material. And lastly, the company intends to focus on organic cotton to diminish greenhouse gas emissions during the harsh manufacturing processes. Taking its commitment towards sustainability further, SIL has engaged SGS (world’s leading testing, inspection and certification companies) as an independent consultant and avail SGS Services pertaining to Environmental, Social and Governance solutions (ESG) to help Sangam group to redefine its sustainability journey and achieve its ESG goals. This initiative is being spearheaded by the next generation of Sangam India Limited, Mr Pranal Modani, who is also Chief Business Strategist of the company. He joined the group in 2014 and has been pushing for multiple sustainability initiatives to make Sangam India an eco-friendly brand. Speaking on this initiative Mr Modani said, “While India is amongst the world's largest producers and exporters of textiles, we cannot overlook the negative impact that the sector has on our environment. We at Sangam India Limited have taken a conscious decision to become a responsible brand and are leading this change as far as the Indian textile segment is concerned. We intend to optimize our resource consumption while simultaneously developing cleantech products that conserve resources themselves.” Pranal further added, “By installing solar plants, ETPs and STPs we have already begun the process of conserving important resources like water and power. Our usage of Organic cotton and Organic fibre will help reduce the high levels of soil erosion and would eventually start improving the overall soil quality.” SIL produces 30 million meters of PV fabric and 48 million meters of denim fabric annually. It has over 2.80 lakh spindles and 3,000 rotors. The Group has also introduced a garment manufacturing facility with 54 seamless knitting machines that can produce 5 million pieces per annum. The GRS (Global Recycled Standard) certified company has been strategically shifting its focus on being an environment-friendly conglomerate encouraging sustainability in the Indian Textile industry.

Source: Hindustan Times

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Lenzing's second supply chain solutions hub inaugurated in Surat

The Lenzing Group, the world market leader in wood based cellulosic fibres, has inaugurated its second supply chain solution centre – The Lenzing Hub, in Surat. The hub will serve as a nerve centre for textile manufacturers and traders located in Gujarat and neighbouring states, allowing them easy access to Lenzing’s supply chain and product solutions. The initiative will fortify Lenzing Group’s presence within India’s textile capital and link the supply chain and brands looking to adopt sustainable fibres that are need of the hour, Lenzing said in a press release. “Lenzing Group is pleased to strengthen its presence in India and Gujarat was a natural choice for opening our second ‘Lenzing Hub’. India being the world’s second largest textile manufacturing country, Gujarat contributes a lion’s share to the country's textile sector The state is a leader in denims with 56 per cent share and accounts for 38 per cent of man made filament fabric production. Our products are trusted for their comfort and aesthetics, and we want to bring our pioneering technology in sustainability, innovation, and excellence closer to our long-standing customers. As global pioneers in sustainable fashion practices, our Surat hub marks an important milestone in the Indian market, as we work to build direct connections and create an incredible demand from this region,” S Jayaraman, senior commercial director, Asia Middle East Africa & North East Asia, Lenzing Group, said. Located in Udhana Darwaza of Surat, the hub is spread across 850 sq. feet and is equipped with a team of commercial and technical experts. The hub will display Lenzing Group’s specialty fibres solutions, it will house the products and innovations created using Tencel branded lyocell and modal fibres, Lenzing Ecovero specialty viscose fibres and carbonzero Tencel branded fibres to attract both buyers and supply chain experts. The hub would also display product samples that have been made in collaboration with top designers and brands across India and the globe, seen at key fashion events, on a regular basis, the release added. This platform will bring forward global innovation capabilities to help to build on  Lenzing’s ongoing conversation on sustainable fashion in the Indian textile industry. Additionally, the hub would cater as an information and support centre for textile suppliers, garment makers, designers and traders to enable quick solutions. The hub will play a pivotal role in offering cost effective supply chain solutions for yarns in coordination with Lenzing’s spinning partner mills as well as technical guidelines and solutions creating value added fabrics and end products. Further, creative and innovative fabric mills widen their presence through having their fabrics promoted on to global platforms using Lenzing’s worldwide network. More and more brands are integrating Environmental and Social Governance practices in their portfolio to create long-term advantages. The Indian fashion industry too is embracing sustainability and responding to consumer's demand for greater transparency. The Lenzing Hub in Surat intends to build on the growing needs and requirements put forth by the consumers and encourage sector players in the region to embrace global solutions and innovations in sustainability and reduce their own carbon-footprint. With a presence of over two-decades in the Indian market, Lenzing has taken the lead in empowering India’s textile industry across the textile value chain to adopt more eco-friendly practices with the introduction of its flagship textile brand Tencel. Lenzing opened the new year with celebrations around three decades of sustainable fibre innovation by its flagship textile brand, Tencel. Over the last 30 years, Tencel brand has empowered companies across the textile value chain to adopt more eco-friendly practices. In India, Lenzing has evolved from a one-product brand into a growing-basket of offerings as consumer demand for sustainable fashion products continues to grow. This success is reflected in collaborations with ace designers such as Satya Paul, Ritu Kumar, Rajesh Pratap Singh, Anita Dongre, and Abraham & Thakore to leading brands such as AND, Global Desi, Myntra, Marks & Spencers, H&M and Levi’s, to name a few. Lenzing is present across all major apparel categories in India such as ethnic wear, intimate wear, general outerwear, denims and home furnishings. Besides flagship fibre brand - Tencel and sustainable viscose fibre brand- Lenzing Ecovero, Lenzing Group also offers specialty fibre in the nonwoven category - Veocel fibres and Lenzing industrial fibre solutions diversifying the reach among the beauty and industrial application segments. Lenzing had opened its first ‘The Lenzing Hub’ in Mumbai in 2020 which is successfully catering to the business needs over there.

Source: Fibre2 Fashion

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Bihar State industries minister Shahnawaz assures new textile policy to boost manufacturing & trade

Bihar’s State Industries Minister Syed Shahnawaz Hussain has said that a new textile policy will be formulated soon by the state government to accelerate the potential of the textile sector. He said this while addressing the annual meeting of Confederation of Indian Industry (CII), wherein the minister claimed that the state has received industrial investment proposals worth Rs 40,000 crore in last one year and many big industrial units will be launched here in the next two months. We will also inaugurate the Begusarai Pepsi Plant set up by Varun Beverages in the first week of April, which will be the fastest production plant set up in a record time in the history of Pepsi,” Minister Shahnawaz said. He highlighted the strength of Bihar being its skilled workers, who work all over the country. “Where there are workers, there are factories. Therefore, we are planning to develop more factories in the state for them to work,” he added. The theme of this year’s CII’s Bihar annual Meeting was ‘Advantage Bihar- Sankalp Se Sidhhi: Bihar @75’. The meeting was addressed by several eminent personalities from CII, healthcare, academia, economics, agricultural and rural development. Silk is the focus product in Bihar, for textile units and the state has been famous for the production of silk. Bhagalpur district of Bihar has been a centre of silk fabric manufacturing. Tassar silk of Bhagalpur is an exclusive product of Bihar which has the potential to fetch premium prices. Bihar had produced around 60 tonnes silk during 2014-15.

Source: KNN India

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Textile exports jump 37 percent in Feb

The country’s textile exports jumped 37 percent to hit the highest ever level of $1.69 billion in February on the back of orders captured from competing economies during the Covid peak, official data showed on Thursday. Complete lockdown in India and Bangladesh pushed international buyers to seek Pakistani exporters. “Pakistan opted for smart lockdown, instead of going for complete lockdowns, which aided industries in continuing their fight against the pandemic,” a leading textile exporter said. According to latest figures of All Pakistan Textile Mills Association (APTMA) and Pakistan Bureau of Statistics (PBS) compiled by Arif Habib Limited (AHL), exports of textile goods jumped to $1.69 billion compared to $1.23 billion in the same month last year, registering massive growth of almost 37 percent. The export figures of textile sector were also up nine percent compared to the preceding month of January this fiscal. During the first eight months of financial year 2021-22, export of textile goods surged to $12.62 billion against $10 billion in the corresponding months of last financial year, posting 26.2 percent growth. Pakistan’s textile exports have been on a growth trajectory in the last several months despite gas shortage and expensive power, which textile exporters lived with to realise the full potential of the textile sector. “Pakistan is still benefiting from the export orders it captured in the peak times of Covid in the world, when its competitors went under complete lockdown and Pakistan managed to keep its industrial sector open by opting for the smart lockdown policy,” Javed Bilwani, chairman, Pakistan Apparel Forum said. He pointed out that though the figures were impressive, the numbers would have been even higher if the country did not have to face gas shortage during winter. About future prospects, Bilwani feared that export of textile goods might get hurt because of gas shortage, with severity increasing as RLNG prices rise in the world. Referring to Russia-Ukraine conflict, the chairman said it raised some serious concerns about the movement of gas prices in the international market, especially once European nations begin purchasing gas from the global market following supply disruptions from Russia. “A country like Pakistan would be in a vulnerable situation, as expensive RLNG is not affordable for us,” he noted.

Source: The News

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China to invest more in overseas infrastructure to bolster trade

China's commerce ministry will invest more in building overseas warehouses and promote the development of smart logistics platforms overseas, according to the country’s commerce minister Wang Wentao, who recently said more policy reforms will be introduced in favour of foreign trade and smooth operation of industrial and supply chains will be ensured. In February, China’s State Council issued a statement approving the establishment of more cross-border e-commerce pilot zones in 27 cities and regions. It now brings the overall tally of pilot zones to 132, covering almost all provincial-level regions in China, from coastal industrial powerhouses like Jiangsu, Zhejiang and Guangdong to inland areas. An updated list with expanded items of imported retail goods for cross-border ecommerce took effect recently, Wang said. The list, issued in April 2016, has been optimised several times and its commodity categories kept increasing, official Chinese media reported. China's total goods imports and exports expanded by 21.4 per cent year on year to 39.1 trillion yuan (about $6.2 trillion) last year.

Source: Fibre2 Fashion

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Address energy prices, Euratex urges EU

European gas prices increased by 330% last year. Euratex, the Brussels-based organisation representing Europe’s textiles and clothing industry, reports that companies are considering shutting down production if energy and gas prices continue to rise, notwithstanding support for the sanctions in place against Russia, The energy crisis that started at the end of last year has been worsening and prices for energy, gas and oil has been skyrocketing. According to Reuters, Benchmark European gas prices at the Dutch TTF hub rose by 330% last year, while benchmark German and French power contracts have more than doubled. Euratex supports the measures taken by the EU in the Ukrainian-Russian conflict, but is asking European Union and Members States to compensate by supporting their industries. Companies need access to energy at reasonable prices, whether from subsidies, the removal of environmental levies, VAT from bills and price caps. The transfer to renewable and cleaner sources of energy needs to speed up, so to guarantee less dependency, but it is a long process that cannot be achieved in the forthcoming months, the organisation stresses. As a result, Europe should urgently look at the available options to control such market shocks. The EU’s textile and clothing industry, with around 154,000 companies employing 1.47 million workers accounts for over €53 billion in exports.

Source: KNN India

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FBCCI in Bangladesh wants no supplementary duty on domestic goods

The Bangladesh government should not impose any supplementary duty on goods produced in the country to promote the domestic industry, Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) president Mohammad Jashim Uddin recently told the federation’s standing committee on budget, import duty, income tax, value-added tax (VAT) and other taxes. As the government cannot protect the domestic industry as it is doing now after Bangladesh graduates from the least developed country (LDC) status, initiatives should be taken to strengthen the domestic industry through tax and duty exemption till 2026, Jashim Uddin said. The FBCCI chief demanded an assessment of whether the various automation projects undertaken by the government in revenue management are being implemented properly. At the meeting, Bangladesh Textile Mills Association (BTMA) president Mohammad Ali Khokon demanded the repeal of tariffs on man-made fibre in the next budget, a single rate of duty on the import of spare parts and retention of 15 per cent corporate tax on textiles till 2030. Committee member Snehashish Barua suggested rationalising the advance tax rate and formulating a single rate of VAT in the next budget, according to Bangla media reports.

Source: Fibre2 Fashion

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