The proposed incentives are being discussed at a time when the European Union’s proposed Carbon Border Adjustment Mechanism can see higher tariff on Indian goods. Textile exporters may soon get a fresh set of incentives to expand their business in European and other markets, according to proposals being considered at the commerce ministry. Textile ministry officials were in talks with the commerce ministry to finalize the incentives, they told a parliamentary committee last week. “These incentives, if and when they come, will go a long way in helping Indian textile firms enter the European markets, which currently slap high levy on Indian exports,” a parliamentarian involved in the discussion said on condition of anonymity. “The proposed incentives will be aimed to offset these levies.” While the rate of incentive is still being debated, it would offset the proposed carbon tax of the European Union and a few other levies, officials said, declining to be named. The proposed incentives are being discussed at a time when the European Union’s proposed Carbon Border Adjustment Mechanism can see higher tariff on Indian goods. New Delhi is opposed to the proposed levy as it might make it more difficult for Indian companies to compete against China and other manufacturing hubs. Europe is India’s third-largest export destination; the country exported goods worth $41.36 billion to the continent in 2020-21, official data show. India does not have free trade agreements with the European bloc and the US, but have entered into such pacts with Mexico and the United Arab Emirates. “The two countries are also seen as potential launch pad for Indian exports to the Western countries,” said an official. New Delhi and Abu Dhabi agreed on free trade last month. India’s major exports to the emirates include refined petroleum products, minerals, cereals, sugar, fruits, vegetables, tea, meat, seafood, textiles, engineering, machinery products, and chemicals. India imports petroleum and petroleum products, precious metals, stones, jewellery, minerals, chemicals and wood products from the West Asian country. “We were also informed that the government is in advanced stages of talks with the UK and Australia,” said the parliamentarian cited earlier. “The officials told us that the Centre has a target of reaching $500 billion in exports by the end of the next financial year.” A boost for textile exports will have a significant effect on the domestic market. The textile sector provides employment to at least 45 million people and is regarded as one of the largest employers in the country, besides the agriculture and services sectors. The textile sector contributes 7% to industrial output in value terms, and around 15% to India’s export earnings, according to trade ministry data. “There is a growing market for our cotton products and man-made filaments,” another MP present in the meeting said, requesting anonymity. “The incentives would be aimed to boost the export of these products.”
Source: Hindustan Times
The GST Council in next meet may look at raising the lowest tax slab to 8%, from 5%, and prune the exemption list in the GST regime The GST Council in its next meeting may look at raising the lowest tax slab to 8 per cent, from 5 per cent, and prune the exemption list in the Goods and Services Tax regime as it looks to increase revenues and do away with states' dependence on Centre for compensation, sources said on Sunday. A panel of state finance ministers is likely to submit its report by this month end to the Council suggesting various steps to raise revenue, including hiking the lowest slab and rationalising the slab. Currently, GST is a four-tier structure attracting a tax rate of 5, 12, 18 and 28 per cent. Essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and sin goods attract cess on top of the highest 28 per cent slab. This cess collection is used to compensate states for the revenue loss due to GST rollout. According to sources, the GoM is likely to propose raising the 5 per cent slab to 8 per cent, which may yield an additional Rs 1.50 lakh crore annual revenues. As per calculations, 1 per cent increase in the lowest slab, which mainly include packaged food items, results in a revenue gain of Rs 50,000 crore annually. As part of rationalisation, the GoM is also looking at a 3-tier GST structure, with rates at 8, 18 and 28 per cent. If the proposal comes through, all the goods and services which are currently taxed at 12 per cent, will move to 18 per cent slab. Besides, the GoM would also propose reducing the number of items which are exempted from GST. Currently, unpackaged and unbranded food and dairy items are exempted from GST. Sources said the GST Council is expected to meet later this month or early next month and discuss the report of the GoM and take a view on the revenue position of the states. With the GST compensation regime coming to an end in June, it is imperative that states become self-sufficient and not depend on the Centre for bridging the revenue gap in GST collection. At the time of GST implementation on July 1, 2017, the Centre had agreed to compensate states for 5 years till June 2022, and protect their revenue at 14 per cent per annum over the base year revenue of 2015-16. However, over this 5-year period due to reduction in GST on several items, the revenue neutral rate has come down from 15.3 per cent to 11.6 per cent. "As the revenue neutral rate has come down and the states stare at a shortfall of about Rs 1 lakh crore, efforts have to be made to make GST revenue neutral and the only way to do it, is rationalise the tax slab and check evasion," a source said. The GST Council over the years has often succumbed to the demands of the trade and industry and lowered tax rates. For example, the number of goods attracting the highest 28 per cent tax came down from 228 to less than 35. The Council, chaired by the Union Finance Minister and comprising state counterparts, had last year set up a panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to suggest ways to augment revenue by rationalising tax rates and correcting anomalies in tax rates.
Source: Business Standard
• However, India is looking for an early harvest or an interim trade deal before progressing with a full pact Commerce minister Piyush Goyal and his Canadian counterpart Mary Ng will meet in New Delhi on Friday to begin talks for a free trade agreement (FTA) between the two countries, two people aware of the development said. The negotiations for a comprehensive economic partnership may also cover investment and services. However, India is looking for an early harvest or an interim trade deal before progressing with a full pact. “India and Canada are set to launch FTA talks on Friday. We will go ahead with the same strategy as that with other developed countries of doing an early harvest deal first," said a government official. While Canada is looking at an investment protection agreement as part of the comprehensive deal, India is keen to discuss market access for agriculture, textiles, pharmaceuticals, and easing of technical and sanitary and phytosanitary barriers to trade. “The India-Canada talks will officially be launched by the trade ministers in New Delhi," one of the two officials cited above said on condition of anonymity. The launch of trade talks comes in the backdrop of worsening geopolitical tensions following the Russian invasion of Ukraine, which has impacted global trade. Earlier in 2019, India had decided to opt out of the Regional Comprehensive Economic Partnership (RCEP) citing “significant outstanding issues, which remain unresolved". The domestic sector had argued that it could get hit due to cheaper alternatives from other countries. The two sides had begun talks for a comprehensive economic partnership agreement in 2010, but it did not see much progress, although the negotiations went on till 2017. This time, the two sides may look at signing a mini trade deal or an early harvest deal, which keep the difficult and sensitive issues to be dealt with later as part of the full pact. Canada is India’s 31st largest market, accounting for just $3 billion or 0.88% of India’s total outbound shipments in April-January 2021-22. Imports from the North American nation stood at $2.5 billion during this period, making up for 0.52% of India’s total inbound shipments. With imports worth $2.68 billion, and exports worth $2.9 billion in 2020-21, India had a small trade surplus of nearly $200 million with Canada. Organic chemicals, pharmaceuticals, and apparel and textiles have been India’s top exports to Canada, with shipments worth $198 million and $261 million and $210 million in the April-January period of 2021-22. Iron and steel exports to Ottawa stood at $300 million. Imports from Canada included vegetables and petro products of $343 million and $542 million respectively. Mint had earlier reported that India is keen to have a strong services agreement under the proposed CEPA as Canada is not a large market for Indian goods. Besides, India is looking at generating more jobs for its teeming IT professionals, by facilitating easier work visas for Canada under the trade agreement.
Source: Live Mint
Global Data lowered India's economy growth forecast to 7.8 per cent for 2022 due to the nation's exports being impacted by the Russia-Ukraine war and spiking oil prices causing ripple effects. GlobalData, a London-based data analytics and consulting company, on Friday said it has lowered India's economy growth forecast to 7.8 per cent for 2022 due to the nation's exports being impacted by the Russia-Ukraine war and spiking oil prices causing ripple effects. In a statement, it said rupee is likely to further depreciate against US dollar while soaring commodity prices will push inflation up. However, Indian banking sector will likely remain resilient. "The ongoing Russia-Ukraine war will have a negative impact on India's exports and spike in oil prices will cause ripple effects on input prices and consumer goods leading to inflationary pressures. "Against this backdrop, GlobalData revises down the country's economy growth forecast by 0.1 percentage point to 7.8 per cent for 2022," the statement said. Ukraine and Russia together accounted for 2.2 per cent share of total imports of India in 2020. India mainly imports mineral fuels (34 per cent of the total imports), natural pearls and semi-precious stones (14 per cent), fertilisers (10 per cent), petroleum oils and crude (5.6 per cent) from Russia, and animal or vegetable fat and oils (74.9 per cent of the total imports), fertilisers (11 per cent), and inorganic chemicals (3.5 per cent) from Ukraine. The prices of these items are projected to shoot up in the short-term, GlobalData said. Gargi Rao, Economic Research Analyst at GlobalData, commented, "In the short-term, Indian traders may feel the pinch of higher oil and gas prices along with delays in shipment and movement of assignments across Black Sea." Inflation rate is already on the rise due to increase in prices of fuel and edible oils. GlobalData forecast that the ongoing geopolitical risks arising from the Russia-Ukraine war would further push the inflation rate to 5.5 per cent in 2022 compared to 5.1 per cent in 2021. "Rise in commodity prices will add to the current account deficit, tighten financial conditions and lead to a possible depreciation of rupee against the US dollar. Investment climate might deteriorate. Shock to stock markets will further lead to decline in capital inflows," said Rao. The diamond polishing business in India may be among the sectors most affected by Indian banks' decision to temporarily freeze fresh transactions with Russian institutions. Farm exporters might take a hit due to port congestion. Many defence projects are likely to get delayed in Russia thereby affecting the defence manufacturers in India. Rao said, "Disruptions to supply cause prices of intermediary goods such as pig iron to shoot up. India being the largest importer of sunflower oil, shipments of tons of cooking oil to India are at risk as logistics and loadings remain stuck at various ports. As a result, the country may face the prospect of increased prices of edible oils. Moreover, due to rise in crude oil prices, Indian import bill is expected to inflate." However, on the positive side, with higher economic sanctions on Russia from the West, India can reap benefits from possible new export opportunities. Steel and aluminum manufacturers could gain by tapping the EU market. The overall Indian banking sector will likely remain resilient, GlobalData said. "However, there might be a possibility of monetary tightening amid the inflationary pressures." Rao concludes: "There are upside risks to domestic inflation arising out of international commodity prices amid the ongoing conflict. Indian importers might feel the pinch of higher commodity prices and exporters may fail to reap benefits due to high logistics costs.
Source: Business Standard
The disrupted supply chain, unexpected price rise, blocked inventory, and uncertainty due to the Russia-Ukraine war has shaken left India’s small businesses and MSMEs. In India, with COVID-19 showing signs of receding, business owners were just about expecting to get back on their feet and start recouping at least part of the losses incurred by the pandemic. However, the Russia-Ukraine conflict seems to have thwarted their hopes with inevitable price inflation and a disturbed supply chain. Addressing a recent press conference, Finance Minister Nirmala Sitharaman also expressed concern, saying that the escalating geopolitical situation is a concern for New Delhi because trade disruptions could potentially impact supply chains and fuel inflation, which has already breached the Reserve Bank of India’s (RBI) tolerance threshold of 6 percent in January. The Indian import and export industry has been severely affected due to the caution in the foreign airspace. Industries across textiles, plastics, steel, pharma, Compressed Natural Gas (CNG), are nevertheless endangered. Russia is an important supplier of oil, metals, and natural gas and higher prices for these commodities are sure to create economic damage across the world. The Indian Rupee is also witnessing depreciation against the US Dollar, which will increase the cost of products in India. The matter of concern Uday Narang, Chairman of Omega Bright Steel, tells SMBStory that amid the Russia-Ukraine crisis, the steel industry will see multiple impacts. “If you see the commodity prices globally, specifically, oil prices are about $110 a barrel in the international market, leading to an increased cost of energy. Metallurgical coal or coking coal is a vital ingredient in the steelmaking process. The current situation is already getting reflected in higher oil and gas prices, leading to an increased cost of energy. Moreover, commodity and raw material prices will also see a steady increase.” Russia and Ukraine are net exporters of steel, cumulatively to the tune of almost 40 million tonnes. Uday says this will disrupt supply chains in the next few months, leading to an increase in steel prices in the short term. If this conflict continues, the market will see a sustained period of higher steel prices, which means that consumers will end up paying more for steel products. The automobile industry, especially, will be impacted in a big way, he adds. The Indian textile industry is also witnessing challenges owing to the halt in shipments. "The Indian textile sector, at large, will witness a massive impact as far as exports are concerned. Key export markets like Europe and Russia have already seen a temporary pause in activities, which would impact the overall turnover of Indian textile brands,” remarks SN Modani, Managing Director and CEO of Sangam India.
Source: Your Story
A panel has considered and approved seven important large and medium size industrial projects worth Rs 1,275.67 crore, which are expected to create employment opportunities for 3,181 people in the state The Karnataka government has approved 48 industrial projects worth Rs 2,062 crore that would provide jobs for over 6,393 people in the state. The clearance for the projects was given at the State Level Single Window Clearance Committee (SLSWCC) meeting chaired by Large and Medium Scale Industries Minister Murugesh Nirani on Saturday. According to Nirani, the panel has considered and approved seven important large and medium size industrial projects worth Rs 1,275.67 crore, which are expected to create employment opportunities for 3,181 people in the state. Also, at the SLSWCC meeting, 40 new projects each with investment of more than Rs 15 crores and less than Rs 50 crore were cleared. These projects valued at Rs 724.87 crore would generate 3,212 jobs, the minister noted on Sunday. A total of 48 projects with investments of Rs 2,062.21 crore with employment potential for 6,393 people were cleared. Among the new investments that were approved are Rockwell Collins India Enterprises of Raytheon Group, Nithin Sai Agrotech, Brighflexi International, Cookson India and Adcock Ingram Pharma and Starling Chem.
Source: Hindustan Times
Women in Bihar’s Shershabadi community are the only artisans who create fine examples of Kheta embroidery, based on the motifs of river and the life around it. Showcased at National Crafts Museum in Delhi, the exhibition also has live demonstrations by craftspersons. The ripples of the river, the movement of the earthworms and textures of the pan patta (betel leaf) — these are the motifs that find space in the Kheta embroidery that is peculiar to Bihar’s Shershabadi community. What makes it stand out are the vibrant patterns, which leave the onlooker in awe. And showcasing around 60 samples of this lesser known embroidery is an ongoing exhibition of handcrafted textiles in the Capital. Done using needle and thread, Kheta is a daytime ritual for the rural women. And their embroidered products will now be exhibited at this show, which also includes a live display of the craft by three Shershabadi women, workshops for educational institutions to learn the craft, expert talks, and audio visual sessions on the Shershabadis. “I must have been 10 years old when I learnt this craft from my mother,” says Shareefa Khatoon, one of the three craftspersons who are demonstrating their work live at the show, and adds, “Aaj mein 40 saal se upar ki hu. Hum apne free time mein karte hain ye kadhai, din ke kaam ke beech mein. Aur bachhpan se karte aa rahe hain. Par Dilli pehli baar aana hua hai.” Based on a four-year long research, the show tries to highlight the intricacies of this embroidery. “In spite of having embroidered quilts such as Kantha from Bengal and Sujani from Bihar, Khetas have remained undocumented,” shares Saumya Pande, textile expert and researcher, who has documented these embroidered quilts in Bihar’s Kishanganj. She explains, “These are reversible quilts, done by Shershabadi women from Kishanganj district of Bihar. Kheta embroidery is a kind of quilting, the art of stitching layers of fabrics. Only a certain community, called the Shershabadi does this kind of geometric embroidery, which almost looks like a weave. I’ve had instances where I’ve shown it to textile experts and after half an hour (of talks), they realised it’s an embroidery!” Travelling back and forth to document the sights and sounds of this work, Pande observed that the brightness of the Kheta transforms the Shershabadi houses that are made of mud structures, with its colour. “The colour in the life of artisans comes alive in their embroidery,” says Pande, adding, “What happens in most quilting techniques in India is that a single quilt is worked upon by many people. But Kheta is done by one person, like a signature quilt.” In the exhibition, visitors can find the same concept done by different women, and each has their signature style. Pande opines what makes Kheta unique is the influences it has, and adds, “Most of the other embroideries in India show influence of desert living, like in all of Gujarat and Rajasthan. Very few embroideries have influences that come from the river. When we started documenting, we found that all the patterns relate to the water bodies and the land there. The Shershabadis have migrated from the Delta area in Bangladesh westwards into India, along the river. For instance, some motifs show the ripples of the river or movement of the earthworm or paan patta (betel leaf). It’s an interplay of natural elements with the people.” Shareefa’s sister-in-law, Tajgera Khatoon chips in saying she has many hopes with the exhibition: “Is show ke baad humare kaam ko aur naam milega. Our work will be then exhibited at a bigger level, and more people will understand what is it and will buy it, too. Zyada logon ko iske bare mein jaan na chahiye aur national level par pehchan milni chahiye ise. Yehi humari umeed hai.”
Source: Hindustan Times
The US, Japan, Europe, Southeast Asia and India based industry bodies, including ITI, JEITA, TechUK, US India Business Council, and Business Europe, represent thousands of companies and technology majors like Google, Amazon, Cisco, Dell, SoftBank and Microsoft. Implementation of the proposed Data Protection Bill, as recommended by a Parliamentary panel, will significantly degrade India's business environment and reduce foreign investment inflows, a dozen global industry bodies have said in a joint letter to the government. The industry associations have sought wider consultations with stakeholders before the bill is introduced in Parliament. The US, Japan, Europe, Southeast Asia and India based industry bodies, including ITI, JEITA, TechUK, US India Business Council, and Business Europe, represent thousands of companies and technology majors like Google, Amazon, Cisco, Dell, SoftBank and Microsoft. The letter, dated March 1, addressed to Union Communications and IT Minister Ashwini Vaishnaw, said the Parliamentary panel's report includes novel recommendations for the personal data protection bill which, if enacted, would create powerful disincentives for India's innovation ecosystem and the promise of a trillion-dollar digital economy. The bodies have expressed concern on inclusion of non-personal data, restrictions on cross-border data transfers, data localisation obligations, mandatory hardware and AI software certifications. The industry bodies said mandates for companies to locally store their data in India will degrade the privacy and cybersecurity protections by limiting stateof-the-art solutions that are globally available. "When these and other recommendations in this Report are considered as a whole, their result, if enacted, would lead to a significant deterioration in India's business environment, degrading the Ease of Doing business in and with India, and negatively impacting India's domestic start-up ecosystem and global competitiveness," the letter said. The industry bodies said recommendation to establish a domestic alternative to the international SWIFT banking system is also unprecedented and appears beyond the scope of the report's objectives, and would have a significant detrimental impact on India's financial sector and digital payments ecosystem. When contacted, ITI country manager for India Kumar Deep said, "There needs to be an extensive consultation to make it a privacy ready future legislation. India can be a leader in this regulatory domain by devising a dynamic data protection legislation keeping in mind the interest of all stakeholders." Opposition political parties have also expressed concern on the panel's recommendations regarding the proposed data protection authority, as well as clauses that they feel interferes with the rights of states. Minister of State for Electronics and IT Rajeev Chandrasekhar on Thursday had said the government is going through the concerns that stakeholders have shared with the ministry. "So we are extremely careful that whatever legislation we do in the digital ecosystem will be enabling legislation...legislation that improves the momentum of growth of the digital economy rather than create any problems going down the road," he had said.
Source: Economic Times
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. India's forex reserves declined by USD 1.425 billion to USD 631.527 billion for the week ended in February 25 due to a dip in currency assets, according to the Reserve Bank data released on Friday. The overall reserves had increased by USD 2.762 billion to USD 632.952 billion in the previous reporting week. During the reporting week, the foreign currency assets (FCA) declined by USD 2.228 billion to USD 564.832 billion. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The value of the gold reserves continued its northward journey and increased by USD 958 million to USD 42.467 billion in the reporting week, the data showed. The special drawing rights (SDRs) with the International Monetary Fund (IMF) decreased by USD 122 million to USD 19.04 billion, the RBI said. The country's reserve position with the IMF also decreased by USD 34 million to USD 5.187 billion in the reporting week, the data showed.
Source: Economic Times
Bangladesh and India have enormous scope to complement each other for the development of apparel and textile industries of both neighbouring countries, BGMEA President Faruque Hassan has said. He reinforced the need for more collaboration and cooperation between the two countries involving business communities and trade associations to explore avenues towards deriving two-way trade benefits. His observations came during a meeting with Shri Sri Narain Aggarwal, former chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) at BGMEA’s PR office in Dhaka’s Gulshan on Saturday. BGMEA vice presidents Shahidullah Azim and Miran Ali were also present at the meeting.They discussed possible areas of collaboration between the BGMEA and the SRTEPC to identify mutual business opportunities and work on to make use of them. They also talked about how both associations could work together to create a bridge between apparel and textile businessmen of Bangladesh and India to facilitate meaningful business interactions. BGMEA President Faruque Hassan said Bangladesh is the second largest exporter of ready-made garments in the world whereas India has a strong textile industry. Bangladesh imports yarns, fabrics, dyes, chemicals and other raw materials from India which is also a promising export market for Bangladesh’s garments. Moreover, Bangladesh is looking to diversify its products from cotton to non-cotton and India having a strong textile industry producing man-made fibres and fabrics can meet the demand for Bangladesh’s RMG sector. “So both countries can complement each other and reap mutual trade benefits,” he said. The former chairman of SRTEPC sought cooperation of the BGMEA with regard to participation of Bangladeshi garment exporters in the upcoming exhibition “Source India 2022” scheduled to be held on March 20-22 in Surat, India.
Source: Business Insider
With nearly 100 million people, the domestic market is considered fertile land for textile enterprises to boost production and dominate the market. However, in the face of increasingly fierce competition from major fashion groups globally, domestic enterprises need to have a roadmap and direction to avoid losses at home. Textile and garment enterprises have mainly focused on exports and have not paid much attention to the domestic market. Facing difficulties caused by the pandemic, especially when the export market declined, businesses have boosted investment in researching, changing product structure and promoting market development. The Nhân Dân (People) newspaper quoted the general director of Garment 10 JSC Thân Đức Việt as saying that before the negative impact of the pandemic caused many export markets to be "frozen," the company had plans to focus on developing the market in the near future. It will continue to promote the development of the domestic market with suitable products that both ensure quality and have prices suitable for consumers. Similarly, with more than 1,300 stores introducing and selling products nationwide, Việt Tiến Garment Corporation has gradually affirmed its name and position with famous brands such as Viettien and Viettien Smartcasual, and San Sciaro. Bùi Văn Tiến, general director of Việt Tiến Garment Corporation, affirmed that the corporation would continue to promote the development of the domestic market, aiming to grow from 10 to 15 per cent of the total export value of Vietnamese textile and garment by 2030, and boost online sales from 25 to 35 per cent. Chairman of the Việt Nam Textile and Apparel Association Vũ Đức Giang affirmed that the domestic market still had a lot of room for development. According to Giang, Vietnamese textile and garment enterprises had been affirming their position in the domestic market with products in the medium and high segments. The target for the domestic market is to account for US$3.5 billion to $4 billion by year end. The Việt Nam Textile and Apparel Association will continue to accompany the business community on counterfeit goods by linking with market management agencies and mobilising consumers through communication channels. At the same time, it will call for investment from domestic textile enterprises and foreign direct investment enterprises in the country's supply.
Source: Ein News
Sanctions imposed by the U.S. and Western world on Russia have caused Vietnamese export order and transaction delays. Phan Minh Thong, general director of Phuc Sinh, has spent the last few days contacting customers in Russia and Europe to deal with order and transaction delays. Yearly, the company exports around $30 million worth of coffee, pepper and other produce to Russia. But when Russia attacked Ukraine last month, followed by Western sanctions, Phuc Sinh's export orders were suspended. After certain Russian banks were blocked from the SWIFT payment system, orders to Russia saw their value drop by half due to devaluation of the ruble and delayed transactions. Thong said his partners in Russia and Europe are facing similar problems due to the sanctions. And in Vietnam, Thong is hardly alone in facing these difficulties. Another company that exports fruits and vegetables to Russia has also had to suspend its orders due to logistical difficulties, according a representative. Export vouchers to Russia have also been denied by banks as Vietnamese banks and their partners use SWIFT. "International logistics firms were all unable to receive goods, while flights to Russia are limited. Orders are delayed and payments are impossible," said the representative. Vietnam exports to Russia hit around $3.2 billion in trade value and imports around $2.3 billion in 2021, according to customs data. Main exports to Russia include computers, components, phones, textiles, coffee and electrical products. As for Ukraine, while its trade turnover with Vietnam is under $1 billion, the country has always been a traditional commercial partner in the region. In 2021, trade turnover between the two countries reached $720.5 million, an increase of 51 percent from 2020. Main exports to Ukraine are computers and shoes, among others. Vietnam would experience impacts on its production, trade, logistics and payments amid the sanctions, according to European-American Market Department under the Ministry of Industry and Trade. Business cooperation with Russia, Ukraine, Belarus and other relevant markets would also be affected. "This crisis is having comprehensive and negative impacts, both in the short and long terms for the economy, commerce, finance and global supply chains," said the department. The first things to be impacted would be the supply of fuel and raw materials, with the crisis being one of the main factors for price hikes of oil and gas, flour, aluminum, nickel and corn as major products of both Russia and Ukraine. Commercial contract payments with Russia would also be difficult due to Western sanctions, which has also caused the devaluation of the ruble. Several Russian exporters have proposed to suspend payments for about two to three weeks to see how the situation would develop. Some shipping companies have refused to deliver goods from Vietnam to Russia, while transportation fees rise with further delays in transportation. The sanctions on air transportation also forced airlines to choose alternative flight routes, increasing costs and burdens on global logistics systems as well as product prices. Several businesses have stated increased transportation costs may leave them without profit. The devalued ruble would also hamper Russia's export capabilities and force its businesses to reconsider their strategies. Vietnam and Russia's bilateral commerce would be unlikely to evade negative impacts if the West decide to step up sanctions, the department noted. Businesses exporting products to both countries should be in touch with their import partners regarding payments and deliveries, it cautioned. Some shipping companies have refused to deliver goods from Vietnam to Russia, while transportation fees rise with further delays in transportation. The sanctions on air transportation also forced airlines to choose alternative flight routes, increasing costs and burdens on global logistics systems as well as product prices. Several businesses have stated increased transportation costs may leave them without profit. The devalued ruble would also hamper Russia's export capabilities and force its businesses to reconsider their strategies. Vietnam and Russia's bilateral commerce would be unlikely to evade negative impacts if the West decide to step up sanctions, the department noted. Businesses exporting products to both countries should be in touch with their import partners regarding payments and deliveries, it cautioned.
Source: V N Express
Textile and leather goods-makers in Istanbul’s garment district are feeling the impact of Russia’s invasion of Ukraine as customers in Moscow and Kyiv have cancelled $200m in orders in the past week, industry officials say. The loss of trade adds to strains on Turkey’s economy, with officials estimating that more than $1bn is directly at risk to the textile industry alone if the conflict in Ukraine continues. Mustafa Senocak, head of the Istanbul Leather and Leather Products Exporters Association, said orders for “hundreds of thousands of pairs of shoes and thousands of leather jackets” have been cancelled. Some Russians say they can pay with the former rouble exchange rate, otherwise they can’t make payments, he said. Russia and Ukraine accounted for more than $1bn in Turkish exports of leather shoes, jackets and finished and unfinished clothing in 2021, and nearly three times that much in the unofficial “suitcase trade” centred in Istanbul, officials say. The loss of trade adds to strains on Turkey’s economy, with officials estimating that more than $1bn is directly at risk to the textile industry alone if the conflict in Ukraine continues. Mustafa Senocak, head of the Istanbul Leather and Leather Products Exporters Association, said orders for “hundreds of thousands of pairs of shoes and thousands of leather jackets” have been cancelled. Some Russians say they can pay with the former rouble exchange rate, otherwise they can’t make payments, he said. Russia and Ukraine accounted for more than $1bn in Turkish exports of leather shoes, jackets and finished and unfinished clothing in 2021, and nearly three times that much in the unofficial “suitcase trade” centred in Istanbul, officials say. The hit to trade puts further pressure on Turkey’s economy after a currency crisis in December and resulting inflationary spiral. Falling export income adds to the Turkish current account deficit, which is swelling after Russia’s invasion of Ukraine last week due to soaring energy prices and an expected hit to tourism this year. After a raft of orders and contracts with Kyiv and Moscow in February, “we face cancellations ... [to the value of about] $200m so far [for the industry],” said Seref Fayat, head of garment maker Tobb Clothing and Apparel Industry Assembly. “It could exceed $1bn if this situation continues.” Turkish trade with Belarus, Moldova and Romania has also cooled due to uncertainty, industry heads said. Some Polish customers asked to suspend orders, while some Russians asked to make payments based on foreign-exchange rates before the invasion and the collapse of the rouble. Suitcase trade Turkey’s garments, textile and leather exports totalled $718m to Russia in 2021 and $308m to Ukraine, data show. The estimated $3bn “suitcase trade” — in which small merchants from Russia, Ukraine and other former Soviet states buy goods in Istanbul, pack them in empty suitcases and resell them back home — has also taken a hit. “We had already started manufacturing for the new season — but now we have all stopped,” said Giyasettin Eyyupkoca, head of the Association of Industrialists and Business People of Laleli, the Istanbul district at the centre of the suitcase trade. Turkish President Tayyip Erdogan’s unorthodox economic plan aims to stabilise the lira currency by balancing the current account deficit. But given the Ukraine conflict, Goldman Sachs revised its forecast for this year’s deficit from 1.5% of GDP to 2.5%. Russians and Ukrainians drive half of Laleli’s annual trade volume, Eyyupkoca said. “I have had the same Ukrainian trading partner for years and an open account with him. How can I now ask him to pay me money while he is struggling to stay alive?
Source: Business Live
The Society of Dyers and Colourists (SDC) has urged the textile coloration industry to harness developments in processes and create a new era of reduced environmental impact in 2022 and beyond. SDC has published a free white paper, ‘Destination low carbon: Global technology and innovation reducing the environmental footprint of textile colouration’. The white paper aims to summarise exemplary practice, and to inspire the wider sector. The white paper is intended as inspiration for change showcases technology and innovation now minimising use of water, energy, and petrochemicals, SDC said in a press release. The study includes a total of six case studies from the UK, Switzerland, Sweden, and Germany explain methods developed and established over recent years as well as brandnew innovation including the use of local agricultural waste to create clean dyes, and micro-organisms to synthesise colours of nature – negating the need for petrochemicals. The SDC is increasingly taking a global lead on the encouragement and promotion of environmental good practice – as well as providing the educational background that makes it possible – in line with members’ interests and concerns in this area. “We have the technological potential to create a new era for our sector and our white paper is fuel for vital, urgent conversation. We know that many companies are already investing in better practice and ways to achieve circularity, and this is real progress. But much more needs to happen to bring this burgeoning new era into the mainstream,” Andrew Filarowski, technical director of the SDC, said. The SDC is calling on its network and the wider dyeing and coloration industry to use the white paper to help devise and deliver carbon lowering improvements across operations. “For dye houses, print works, and laboratories keen to plan production and run processes more effectively, and report clearly on various metrics, this document provides a plethora of ideas and inspiration. For companies with a lot of scope to improve, it is not too late to start. In 2022 and beyond, every positive action to lower carbon, water usage or effluent discharge — and indeed all three — counts towards the brighter, greener future of our sector,” Andrew continued.
Source: Fibre 2 Fashion
Inter Ikea Group and Ingka Group, parent of global home furnishings retailer Ikea, announced that the worldwide brand is pausing all operations in Russia and Belarus. The move comes a week after Russia invaded Ukraine. Belarus, which neighbors both countries, is viewed as a Russian ally in the war. “The war has had a huge human impact already. It is also resulting in serious disruptions to supply chain and trading conditions. For all of these reasons, the company groups have decided to temporarily pause Ikea operations in Russia,” officials wrote in a statement. In laying out the decision to pause operations, the release noted three key pieces of action: • Inter Ikea Group has taken the decision to pause all export and import in and out of Russia and Belarus. • Inter Ikea Group has taken the decision to pause all Ikea Industry production operations in Russia. This also means that all deliveries from all sub-suppliers to these units are paused. • Ingka Group has taken the decision to pause all Ikea Retail operations in Russia, while the shopping center Mega will continue to be open to ensure that the many people in Russia have access to their daily needs and essentials such as food, groceries and pharmacies. “These decisions have a direct impact on 15,000 Ikea co-workers,” officials wrote in the release. “The ambitions of the company groups are long term, and we have secured employment and income stability for the immediate future and provide support to them and their families in the region.” Ikea Foundation, funded by Ingka Foundation, announced an immediate donation of €20 million for humanitarian assistance to those who have been forcibly displaced as a result of the conflict in Ukraine. This is in response to an emergency appeal from UNHCR, the UN Refugee Agency, to scale up its assistance and protection to people affected by the conflict in Ukraine. In addition, Inter Ikea Group and Ingka Group are initially granting €10 million each to provide support in products and other assistance to UNHCR, Save the Children and other organizations working in the local markets.
Source: Home Textiles Today
