T, MAR. 22— The manmade fibres dominate global fibre consumption with around 70% share whereas the share of natural fibre is only 30%. In India, however natural fibre namely cotton is dominated fibre, though consumption of Man-made fibres in India is steadily increasing as there is huge scope for Manmade fibre segment both in India and globally, opined Ms. Darshana Vikram Jardosh, Union Minister of State for Textiles, here. Addressing the members of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) at its Export Award Function, Mr. Jardosh said that in order to strengthen the MMF segment, the Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs 10,683 crore, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable Textile sector to achieve size and scale and to become competitive. The Government has approved setting up of Seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM sector competitive in international market, the minister informed. Mr. Jardosh further informed that the government has allocated an outlay of MITRA) Parks in Greenfield/ Brownfield sites with an outlay of Rs. 4,445 crore for a period of seven years upto 2027-28. These parks will enable the textile industry to become globally competitive, attract large investment and boost employment generation. The scheme of Rebate of State and central Taxes and Levies (RoSCTL) effective from March 2019 has been continued till 31st March 2024 for Exports of Apparel / Garments and madeups in order to make the textile Rs.1000 Crores for advance research and innovation in Technical Textiles at par with the best in the world. In addition, Government is implementing various schemes viz the Amended Technology Upgradation Fund Scheme (ATUFS), Schemes for the development of the Powerloom Sector(Power-Tex), Scheme for Integrated Textile Parks (SITP), SAMARTH- The Scheme for Capacity Building in Textile Sector, etc. for attracting investments and upgradation of skills in the Textiles sector, she said. During the event Ms. Jardosh honoured two stalwarts - Mr. Sanjeev Saran and Mr. Dilip Gaur - with lifetime achievement and the best performing member-exporters award for their magnanimous contribution to the manmade fibre textiles segment. Earlier, Mr. Dhiraj Shah, Chairman, SRTEPC, said that during last 2 years every business and economic activities have been severely impacted due to covid pandemic. The MMF textiles segment also suffered and exports contracted almost US$ 2 billion during 2020-21. However, the hard work and dedication put in by the exporters has yielded encouraging results and this year SRTEPC is likely to achieve around US$ 6.3 billion of exports, he said.
Source: Tecoya Trend
FE reported last week that the government is firming up a Rs 16,635-crore programme that will not just replace the latest avatar of the Technology Upgradation Fund Scheme (TUFS) but also promote integrated manufacturing facilities and technology adoption in a big way to enable India to regain its lost share in the global market. The government is considering a proposal to extend the validity of its flagship capital investment scheme for the textiles and garment sector beyond March 31, until a new programme, which is in the works, is finalised, according to sources. FE reported last week that the government is firming up a Rs 16,635-crore programme that will not just replace the latest avatar of the Technology Upgradation Fund Scheme (TUFS) but also promote integrated manufacturing facilities and technology adoption in a big way to enable India to regain its lost share in the global market. The new scheme will be called the Textiles Technology Development Scheme (TTDS). “The new scheme will take some time to materialise. More deliberations are required for finalising certain aspects of the scheme. So, there is a proposal to extend the current scheme’s validity. The government will soon take a call on whether the extension will be granted,” one of the sources said. While notifying the Amended Technology Upgradation Fund Scheme (ATUFS) in January 2016, the government had set aside an outlay of Rs 17,822 crore (Rs 12,671 crore for clearing pending claims under the scheme’s earlier avatars and Rs 5,151 crore for implementing the ATUFS) until FY22. The scheme is supposed to mobilise fresh investments of about Rs 95,000 crore in the textile and apparel sector by FY22 and create 3.5 million new jobs. However, until FY21, it could incentivise projects worth only Rs 46,861 crore, while the subsidy disbursement stood at Rs 3,378 crore. The TUFS, the earliest version of ATUFS, was introduced in 1999 to make available funds to the textile industry for upgrading technology at existing units as well as for setting up new ones with state-of-the-art facilities. The idea was to improve their viability and competitiveness in both the domestic and export markets. Under the extant scheme (ATUFS), garments and technical textiles firms are provided a 15% subsidy on capital investments, subject to a ceiling of Rs 30 crore for each investor. The remaining segments, such as weaving, processing, jute, silk and handlooms, get 10%, with a cap of Rs 20 crore. Before the ATUFS was introduced, the various versions of the TUFS had attracted investments of more than Rs 2.71 trillion in about 16 years through FY15, according to an earlier official estimate. Subsidies of Rs 21,347 crore were disbursed under the scheme during this period and a lot of pending claims were settled later. The capital-intensive spinning industry has been the largest beneficiary of the TUFS, as most of the investments have taken place in this segment. Of course, with the change in the incentive structure under the ATUFS, spinning mills haven’t quite reaped the benefits in recent years. Largescale capacity addition in spinning in earlier years also discouraged them from undertaking fresh expansion.
Source: Financial Express
Madhya Pradesh trade promotion council has been constituted with chief minister at the helm, to explore international trade opportunities for the state. The council has ministers, administrative heads and representatives of different committees in it. The objective of the council is economic development of MP by increasing the state's share in the national and international trade and to improve production quality and value addition to create export and employment opportunities .The chief minister would head the council while its members would be ministers of finance department, micro, small and medium enterprises, forest, industry policy and investment promotion, transport, science and technology, tourism, horticulture, cottage and village industries, agriculture, technical education, skill development and labour department. Other members would be vice chairman MP state planning commission and chief secretary. Also, there are representatives of state committees for agriculture and food processing, pharmaceutical, textile and garments, automobiles, engineering and IT. Principal secretary industry policy and investment promotion is the member secretary while managing director MPIDC would be the member of the council.
Source: Times of India
The Puducherry CGST & Central Excise Commissionerate on Tuesday began the first of a series of trade facilitation meetings with the trade and industry sectors. The sectors represented on the opening day were pharma, textiles, edible goods and FMCGs. According to Commissionerate officials, this was the second such meeting to resolve GSTrelated grievances or systemic glitches after an interaction in December last year. “These meets for small, medium and big enterprises are scheduled at the end of each quarter,” an official said. Nodal officers have been designated for interactions with different sectors that would take place at the Commissionerate and divisional offices in the Union Territory. Trade facilitation meetings have been scheduled for the automobile, auto ancillaries, electrical and electronics and other sectors on Wednesday, and for MSMEs and exporters on Thursday. The Commissionerate has urged trade and industry associations/Chambers of Commerce to encourage the participation of their members. Those unable to attend can mail their representations/suggestions/grievances to hqrs-pycgst@gov.in, marking copies to addlcomm-pycgst@gov.in, or on WhatsApp number 9968954962.
Source: The Hindu
Australia and India launched talks on a trade deal in 2011, and in 2020 the two prime ministers decided to speed up the negotiations. A joint statement released on Tuesday said considerable progress had been made in negotiations for the Comprehensive Economic Cooperation Agreement (CECA) which was "close to finalisation". Australia and India said on Tuesday they are close to finalising an interim economic and trade cooperation deal and hope to sign a full agreement by the end of the year. Australian Prime Minister Scott Morrison and Indian Prime Minster Narendra Modi held a virtual summit on Monday evening to discuss economic, defence and technological cooperation, as well as the war in Ukraine. To check if you're eligible to immigrate, Click here A joint statement released on Tuesday said considerable progress had been made in negotiations for the Comprehensive Economic Cooperation Agreement (CECA) which was "close to finalization. An interim economic deal would be concluded "at the earliest", and the two nations would "work towards an ambitious, full CECA by the end of the year to enhance trade and investment ties", it said. Morrison's government, which faces an election in May, hopes to strike a trade deal with India to help diversify its exports away from a reliance on China, with which it has increasingly frosty diplomatic relations. Australia and India launched talks on a trade deal in 2011, and in 2020 the two prime ministers decided to speed up the negotiations. Australian Trade Minister Dan Tehan said he expected the trade deal to be agreed "hopefully, in the next week". India was Australia's seventh-largest trading partner in 2020, with two-way trade valued at A$24.3 billion ($18 billion). Tehan said the trade deal would give greater mobility for workers and students, as well as boost cooperation on critical minerals. India has said India is seeking greater market access for its textiles, footwear, leather, and pharmaceuticals.
Ukraine Conflict Morrison and Modi also discussed the war in Ukraine and expressed "serious concern about the ongoing conflict and humanitarian crisis", the joint statement said. U.S. President Joe Biden said earlier that only India among the Quad group of countries was "somewhat shaky" in acting against Russia over its invasion of Ukraine, as it tries to balance its ties with Russia and the West. The Quad group includes the United States, Australia, Japan and India and is focused on a free and open Indo-Pacific. India's foreign ministry said on Monday that Australia understood India's position on Ukraine, which "reflected our own situation, our own considerations". The joint statement released Tuesday by Morrison's office said Morrison and Modi had "reiterated the need for an immediate cessation of hostilities" in Ukraine. "They agreed to remain closely engaged on the issue and its broader implications for the Indo-Pacific," it said.
Source: The Hindu
The panel also suggested that the foreign trade policy (FTP) be firmed up within the stipulated time-frame. The FTP for 2015-20 was extended by two years through March 2022 following the Covid outbreak to ensure policy continuity. As India gears up to forge a raft of balanced free trade agreements (FTAs), a Parliamentary panel has recommended that New Delhi include a review mechanism in such pacts to ensure “mid-way course correction for any asymmetries” in trade with the partners. A report by the Parliamentary Standing Committee on Commerce, submitted on Tuesday, also called for expeditious conclusion of FTAs to reap benefits. An FE analysis suggests, in five out of six of India’s prominent FTAs, which came into force between 2006 and 2011, have exacerbated New Delhi’s trade balance. This significantly contributed to the country’s unease over getting into fresh pacts for about a decade before the government decided to sign a deal with the UAE last month. Another interim trade deal with Australia will be announced anytime now. The panel said that India should leverage the ‘China Plus One Strategy’ to emerge as an alternative investment destination for multinational companies. The growing preference of firms located in Europe and the US to shift from China to other manufacturing bases offers a golden opportunity for India that needs to be taken advantage of, it said. India should pursue FTAs or preferential trade pacts with the countries that seek to invest here under the strategy, the report said. Importantly, the House committee has said that the imposition of minimum alternate tax and the introduction of sunset clause for income tax relief would impact the competitive advantages of special economic zone units. “The committee recommends that the government should ensure the continuation of fiscal benefits and extension of a sunset clause to retain the competence of SEZ units,” the report said. It also added that SEZs can have the benefits of Remissions of Duties and Taxes on Exported Products (RoDTEP) scheme, which is now applicable to domestic exporters. It has also expressed concerns over the reduction in export incentives and suggested some of the sectors that have been kept out of the purview of the government’s flagship tax remission schemes be included. The sectors include pharmaceuticals, organic and inorganic chemicals and iron and steel. The panel also suggested that the foreign trade policy (FTP) be firmed up within the stipulated time-frame. The FTP for 2015-20 was extended by two years through March 2022 following the Covid outbreak to ensure policy continuity. On exports, the panel said: “The committee recommends that the department (of commerce) should identify the infirmities and opt for a more focused approach in increasing market access of the sectors that exhibit a downtrend in exports.”
Source: Financial Express
In its Economic Outlook for Southeast Asia, China and India, the agency said that China’s economy is seen growing 5.1% in both FY22 and FY23. The Organization for Economic Cooperation and Development (OECD) on Tuesday retained the outlook for India’s real gross domestic product (GDP) at 5.5% in FY24, lower than 8.1% in 2022-23. In its Economic Outlook for Southeast Asia, China and India, the agency said that China’s economy is seen growing 5.1% in both 2022 and 2023. Driven by infrastructure spending and border reopenings, the GDP of emerging Asia - China, India and the 10 members of the Association of Southeast Asian Nations (ASEAN)- is projected to grow 5.8% this year, following a 7.4% expansion in 2021 and a 0.8% contraction in 2020, it said, adding that the Ukraine war adds to inflation and supply chain risks facing an emerging Asia attempting to break out of the Covid-19 slump. “While we expect the economic recovery from the COVID-19 pandemic to continue, the growth momentum remains fragile. Inflation, notably rising energy and food prices, and supply-chain disruptions present an ongoing risk to the recovery,” OECD SecretaryGeneral Mathias Cormann said. “Governments in the region need to implement effective macroeconomic and structural policies to safeguard their economies, continue to improve citizen’s well-being and accelerate progress to achieve the Sustainable Development Goals,” Cormann added. One of the main obstacles to bond-market development in India is limited investor base; insufficient liquidity in the secondary market, OECD noted.
Source: Economic Times
He said there is no question at all for India to move back from its engagement with the global economy, trade, services, financial and technological aspects among others. NITI Aayog on Tuesday sought to dispel the fear that India is favouring a closed economy by promoting 'Atmanirbhar' mission, and said the country can achieve better results for its people by having a deeper engagement with the global supply and value chain. Inviting Japanese investors to set up companies in India on a larger scale under the recently launched production linked incentive (PLI) schemes, NITI Aayog Vice-Chairman Rajiv Kumar said India remains very deeply committed to greater integration with global flows and the regional network. "We would want the Japanese companies to come and make India an export hub to the rest of the world under the PLI scheme. I think the environment is there to develop it because on the Indian side we have done, and we will continue to do whatever is required to attract Japanese investment into India. "I do want to take this opportunity to dispel any fear at all that the production linked incentive scheme for the Atmanirbhar, the self-reliant India-- a call given by the prime minister as a response to the Covid situation and for our economy to come out of it-- I want to dispel the fear that it is in any sense leading us towards a closed economy," Kumar said while speaking at a webinar on the 10th ICRIER-PRI workshop on 'Policy Responses to COVID-19 in India and Japan and Prospects for Economic Cooperation Going Ahead'. He said there is no question at all for India to move back from its engagement with the global economy, trade, services, financial and technological aspects among others. "We are convinced that it is only by a deeper integration for India that we will achieve better results for our people as we go forward. "And I think what we have done points towards that, whether it the liberalisation of our foreign investment in defense sector, whether it is opening up the defense sector to our private domestic enterprises or liberalisation of our services sector, all that I think points to the fact that India remains very deeply committed to greater integration with global flows and our regional network," Kumar said while inviting Japanese firms to invest more in India. He said that Japan can contribute to every aspect of the Indian economy and help it grow the exports by taking advantage of the global demand and achieve a higher share in global trade and merchandise services growth. "It will help us accelerate our growth and our employment generation and I think that is where the Japanese companies are very well placed to (help us) achieve this in the coming years," he added. Speaking on the transition towards green mobility by promoting clean energy, he said Japan has already taken a lead in this field and it can help the Indian companies by inviting them to supply green ammonia-- a key input in making hydrogen fuel. "We have also been working very diligently on the hydrogen mission. I know that Japan has made significant advances in the hydrogen economy, Toyota has just launched its own vehicle and I think that is where...my request to our Japanese friends is that when Japan comes up with its tenders for green ammonia, please do invite Indian companies to supply that," Kumar said. "We have a target of exporting 10 metric million tonnes of green ammonia in the next ten years. And green ammonia is the basis for the hydrogen economy and we are committed to producing and taking green hydrogen power very rapidly". Earlier on Saturday, Japan announced an investment target of 5 trillion yen (Rs 3,20,000 crore) or USD 42 billion in India in the next five years following talks between Prime Minister Narendra Modi and his Japanese counterpart Fumio Kishida, who was on his first visit to India.
Source: Economic Times
The revenue board is also looking positively at the demand for lowering VAT on imports of raw materials for blended yarn and fabrics With $2.5 billion investment proposals in the pipeline, the textile sector appears to be in the government's good books. The ministry concerned recommends the revenue authority for some favour in taxes, while the revenue authority itself is working to make customs procedures easier for the sector to save money and time. These will help the textile industry move faster with its next venture – to create a stronger backward linkage for the apparel industry by boosting local production of manmade fibre and thus reducing import bills for cotton. In response to the industry's long-held demand, the National Board of Revenue (NBR) has taken steps to resolve complexities concerning the harmonised system (HS) code in importing various spare parts of textile mills. The revenue board is also looking positively at the demand for lowering VAT on imports of raw materials for blended yarn and fabrics like polyester, synthetic, viscose and lycra (combinedly known as man-made fibre). As the budget for the next fiscal year is in the works, the Ministry of Textiles and Jute has urged the NBR to keep the income tax rate at 15% for textile and spinning millers till 2026 – as the benefit is set to end on 30 June 2022. The initiatives have come in tandem with the spirit of the upcoming National Industrial Policy that proposes tax breaks and subsidies on capital investment for import substitute industries. Bangladesh spends Tk53,000 crore on cotton imports, which accounts for 13% of the country's total import bills. The already drafted new industrial policy is designed to discourage such imports and support backward linkages and local production of capital machinery and spare parts for industries like apparel, automobile and pharmaceutical. Furthermore, the Bangladesh Textile Mills Association (BTMA) has long been complaining on how HS code complexities are making imports of spare parts costlier than the capital machinery. It sent a list on Monday, 21 March, of 122 electrical, electronics and mechanical items to the NBR to include in the list of HS codes as import of these items cost the industry higher. Earlier, the two parties held a meeting to solve the problem after which the NBR asked the entrepreneurs for the list of equipment and parts. Entrepreneurs said if the list is approved by the NBR, it would reduce the time, money and hassle regarding importing these listed items. The HS code is a common international standard used by customs officials to identify export-import goods. Currently, entrepreneurs have to pay 1% duty for importing any type of equipment for setting up industries. As per the NBR, spare parts worth up to 10% of the prices of the equipment can be imported at the same tariff. According to BTMA sources, the NBR has a list of HS codes for more than 200 items which receive reduced tariff rates. The list was prepared two decades ago and now the factories need many new equipment and spare parts that are not included in the list. Khorshed Alam, former director of the BTMA and chairman of Little Star Spinning Mills Limited, told The Business Standard, "We need many new machines and spare parts which are not on the NBR list. When these spare parts are imported, the customs officials do not want to release them. In that case, we have to pay 26% or more duty-tax for commercial imports of spare parts." Another importer, on condition of anonymity, said, "These parts are related to industrial equipment. As they are not listed, customs officers demand extra money to release them at the reduced duty rate. However, if we do not pay the extra money, they include the products in different HS codes and charge a huge amount of duty." In a letter to the NBR, Mohammad Ali Khokon, president of BTMA, said, "It has been almost 20 years since the inclusion of the equipment and spare parts currently on the reduced rate list. Bangladesh's textiles are now in the era of the Fourth Industrial Revolution, so we have to use 3rd and 4th generation machinery." He told The Business Standard, "We hope that if the spare parts that we mentioned are included in the NBR list and allowed reduced rates it would ease the complexity and harassment that we are facing." Lutfor Rahman, former NBR member of customs policy, said, "The NBR will definitely consider the logical part of the list sent by the entrepreneurs." A senior official at the NBR's customs department said on condition of anonymity, "We have to consider whether there are any high-tariff parts or any parts that are produced by our domestic industry in the list provided by the entrepreneurs."
Source: TBS News
At a recent roundtable, the US and Central American textile and apparel executives and investors discussed trade policy priorities that support economic development in the region and bolster a co-production chain that supports over 1 million textile workers. US textile companies have made billions in investments with historic investments made this year. The National Council of Textile Organisations (NCTO) in conjunction with regional textile industry associations hosted Jose Fernandez, under secretary of state for economic growth, energy and the environment, at the roundtable in Tegucigalpa, Honduras. The under secretary’s visit with leading apparel and textile manufacturing companies in the US and across the region comes at a critical time, when the global supply chain has broken down and demand for ethical and sustainable sourcing is growing, presenting new opportunities for significant growth and expansion to the Western Hemisphere and out of Asia, NCTO said in a press release. Textile and apparel executives with a significant stake in this co-production partnership, as a result of the Dominican Republic-Central America Free Trade Agreement (CAFTADR), held a roundtable discussion highlighting the need for policies that continue to support the onshoring and nearshoring of this critical supply chain, which has spurred significant job growth and economic development in the region and the United States. Hundreds of millions of dollars of investments have been flowing into Central America, predicated on the US-CAFTA-DR agreement and the co-production chain that facilitates $12.5 billion in two-way textile and apparel trade. “We sincerely appreciate under secretary Fernandez’s visit and discussion with textile and apparel companies today in Honduras, which underscores the Biden administration’s commitment to this critical manufacturing sector that has formed the backbone of economic development in Central America. The U.S. textile industry has invested over $20 billion dollars in the U.S. and billions more in the hemisphere over the last decade to grow economic opportunities in the U.S. and in the region,” NCTO president and CEO Kim Glas said. “In the midst of an ongoing global health crisis, the US and Central American coproduction chain continues to make sustainable investments that strengthen supply chain resilience; creates job opportunities and investment in the US and the region; and mitigates the environmental and labour impact linked to Asian supply chains, as momentum grows for onshoring and nearshoring textile and apparel production,” Glas added.
Source: Fibre2 Fashion
The fashion industry in Kenya is largely dominated by micro, small and medium enterprises, which puts them at a disadvantage when competing with conglomerates who have dominated the global market. How then can a local designer just starting out or with an established market match up to these multinationals that spend billions on fabrics, marketing, research and top-tier talent? A latest report titled Fashion DNA Kenya-Needs Analysis by British Council outlines opportunities for SMEs in the sector. Improve entrepreneurial skills This includes business planning, product costing, financial management and how to access experts. The report notes that entrepreneurship is not a skill promoted in the education sector, yet almost half of graduates have thought of setting up a business. “The lack of financial skills makes designer businesses appear risky and uninvestable,” the report says. These skills as well should go hand in hand with the artistry behind fashion and design, which include how to cut, pattern and sew. The report says the connection between fashion industry and education is generally perceived as poor. “Only few internships are being promoted by college fashion courses. Interviewees mentioned that fashion designers prefer to encourage ‘unofficial interns’ - those who have never studied at college - to join their companies on unofficial apprenticeships, since the level of motivation is higher amongst this group who are making conscious career change choices to come into fashion,” the report explains. Other skills lacking in many fashion designer businesses were production management, pattern cutting and sewing. “Since many fashion designers learn these skills informally, many do not learn fashion at college and instead learn on the job when they turn to fashion design as a career change,” says the report. It suggests signposting available trainings schemes and strengthening their financial skill development through toolkits which will make the designers more prepared for investment and improve the perception of their businesses. “Existing training programmes and grant schemes can also focus on measuring Key Performance Indicators and having concrete data to support the viability of fashion businesses. Prefinancing for production from government will also unlock the growth potential of the SMEs,” the report says. Supply chain First, the report says, there needs to be a clear understanding of the categorisation and various layers of fashion manufacturing within Kenya, within which ‘fashion designer’ micro enterprises form a large constituency. “High cost of fuel, lack of suitable locally produced textiles, and the lack of awareness of the various business models in the ecosystem are all problems affecting fashion designers,” it says. Hence creating platforms where different stakeholders can connect and understand their business models will increase opportunities for partnership across the value chain. A suggestion is fronted to the Kenya Association of Manufacturers to recommend that smaller operations benefit from advisory services and subsidies, so that they can improve their competitiveness like the larger scale operations. “Partnerships between supply chain partners can also be fostered, and suitable local textiles be made available in smaller quantities for start-ups to participate,” says British Council. The report says there is an opportunity to improve local awareness and branding through getting support to scale up the ‘Made In Kenya’ retail concept to make it more attractive to local and international consumers, and by engaging retail experts to stimulate innovation in the local market. Sustainability Businesses are heavily adopting ‘go green’ initiatives and the fashion industry is not left out. Investors are also looking into putting their money in business ideas that are friendly to the environment, either by reducing the extent of environmental degradation already done or offering solutions for the future. Your fashion business as an entrepreneur then should also integrate the sustainability narrative. “It is evident that the majority of fashion designer businesses in Kenya are making social or sustainable impacts, and this is an important characteristic for Kenya,” the report says. However, there is an apparent lack of confidence to own the narrative and to discuss and promote the social and sustainable impacts among many fashion designers.”
Source: Standard Media
New ‘Wellbeing Wardrobe’ study shows EU action vital to build new textile systems A new report [1] commissioned by the European Environmental Bureau says that only a radical rethink of its economic model can curb the fashion industry’s sustainability problem. The research comes amid building scepticism of economic strategies anchored in growing GDP at all costs, [2] and as the European Commission prepares to step up efforts to regulate the textile sector through a new sustainability strategy. [3] Fashion’s adherence to growth has contributed to it being one of the world’s most polluting, wasteful and exploitative industries, yet existing strategies to tackle fashion’s unsustainability – such as using more recycled materials in fast fashion or labelling schemes – stop short of questioning the industry’s problematic dominant economic model. The research, led by the Institute for Sustainable Futures at the University of Technology Sydney, makes the case for moving fashion beyond growth towards a system where human and ecological health come first. Using the concept of the ‘wellbeing economy’ – an umbrella term to describe growthalternative economic concepts – the research identified four guiding principles for building a post-growth direction for the fashion sector so that it works in the interest of the common good: 1. Establishing limits to reduce how much is produced and consumed in line with planetary boundaries 2. Promoting fairness to ensure social justice globally 3. Creating healthy and just governance to make sure the transition is inclusive and participatory 4. Embracing new exchange systems where clothing and textiles are provided in ways that do not depend on overproduction and overconsumption Dr Samantha Sharpe, Research Director from the Institute for Sustainable Futures at the University of Technology Sydney, said: “We are all aware of the environmental impacts of the sector – carbon emissions, water pollution and the growing problem of textile and clothing waste – and we are also all too familiar with poor social sustainability standards across the supply chain. This is after years, decades in some cases, of trying to address these issues. We need to urgently look at the sector in a new way. We must change the focus away from growth, the cause of over-production and consumption, and onto wellbeing.” Emily Macintosh, Policy Officer for Textiles at the European Environmental Bureau, said: “Unravelling the fashion industry’s obsession with economic growth is the only way to stop environmentally damaging and exploitative overproduction. Politicians have a responsibility to ensure new EU rules on the textile industry are more than a greenwash of business-as-usual practices. It’s time to look beyond GDP and turn to wellbeing economy principles so we can redesign a textile system in line with human needs and the limits of our planet.” Mathilda Tham and Kate Fletcher, authors of Earth Logic [4] – a key reference point for this project, said: “Despite decades of sustainability work in the fashion sector; environmental and social impacts associated with the fashion system are getting worse, not better. This is because the rapid growth of the sector outruns the potential of improvements to mitigate its negative effects. It will continue to be the case when the logic driving the sector is to deliver economic growth. We hope this report can be the platform for policy action that marks a step change and genuinely prioritises the health and survival of Earth and all species, including humans through fashion provision and expression.”
Source: EU Ecolabel
