The three-day textile exhibition ‘Source India 2022’ organized by the Synthetic and Rayon Export Promotion Council (SRTEPC) has generated a business of nearly US$150 million even as there were only 75 visitors from 30 countries. SRTEPC officials claimed that around US$ 300 million were placed and these will be sealed after completing some formalities in the coming days. SRTEPC is one of the oldest export promotion councils in the country encouraged by the government to promote exports. “We did not allow entry to any local buyers and the exhibition was open for only international buyers,” said Dhiraj Shah, chairman of SRTEPC. “Business of US$ 150 million has already been generated in three while orders of around US$ 300 million have been placed. These orders will be finalized by offices of the buyers, who visited the exhibition,” added Shah. Total 52 exhibitors from across the country participated in the exhibition. The buyers came from Africa, Europe, Turkey, the US and a few other regions. All buyers were provided with transport and accommodation facilities by SRTEPC. “The exhibition was very useful and I am finalizing a few deals. We source the majority of fabric from India. My entire trip was sponsored by the Indian government and it is a good move to promote export,” said Mubiru Mohammad, sales executive of a Kampala-based textile company in Uganda. “The buyers are limited and that is good. It helps genuine buyers to spend time with the manufacturer,” he said A buyer from Kenya capital Nairobi, Eunice Gakungu, said, “I found the exhibition well organized and we found a few products which we were looking for. We are placing orders after checking the products and collecting details.” Gakungu, a businesswoman, who runs a business and imports fabric for garment manufacturing. Textile industry sources said the scope of export is much brighter for India since the majority of buyers are not going to China. Even the Chinese suppliers are not in position to supply orders on time and at old rates.
Source: Times of India
After emerging as the leading manufacturing centre of man-made fibre (MMF) with nearly 65 percent contribution to total production of artificial fibre in the country, the city is now focusing on manufacturing garment too. Currently, the textile city doesn’t enjoy significant garment manufacturing power as compared to its dominance in fabric making. Around four crore metre grey fabric is manufactured in the city, of which a small production is consumed locally for manufacturing of ethnic garments. The largest share, however, goes to sari-making industry and what is left is exported. “Garment is the process that involves stitching. Currently around 1 lakh stitching machines are employed in the city but majority of them are used for stitching lace on saris,” said Ashish Gujarati, president Southern Gujarat Chamber of Commerce and Industry (SGCCI). As per an estimate, around 200 medium and small size garment units are operating in the city. “The number of 200 is small, but there are inquiries and young entrepreneurs who are exploring new opportunities. We are exploring opportunities for garment parks as well and requesting the government to provide us land,” added Gujarati. “We are receiving inquiries from young investors who want to start a garment unit. They have space and money but need support to understand garment manufacturing,” said Ajoy Bhattacharya, south Gujarat regional chairman of the Clothing Manufacturers Association of India (CMAI). To promote and explore opportunities in garment manufacturing, the SGCCI is to participate in CMAI Fab Show in Mumbai next month. Around 40 textile manufacturers from the city are participating in the event with their products. “SGCCI will be conducting workshops to create awareness about garment manufacturing. Experts from developed centres will participate,” said Bhattacharya.
Source: Times of India
Two days after India hit $400 billion in exports, India's commerce minister has set some ambitious targets for the next decade Piyush Goyal, India’s commerce minister, is in a rush. Even as India’s merchandise exports hit a record $400 billion for the first time, achieving the target nine days ahead of schedule, Goyal is now busy planning for the country’s manufacturing and services sector to clock in a record $1 trillion in exports in ten years. “Now it's time for the service sector and manufacturing sector to race to the top and see who will cross the $1 trillion export mark first,” Piyush Goyal, India’s Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, said at the annual 2022 Forbes India Leadership Awards (FILA 2022) ceremony in Mumbai. India’s $400 billion export figure, announced earlier this week, is significantly higher than the previous record of $330 billion achieved in 2018-19, and 41 percent higher than the previous financial year when India exported goods worth $291 billion. The services sector, the minister reckons, meanwhile, is already at $250 billion. “We'll soon have the numbers on service exports, and I promise you that's going to be very, very exciting,” Goyal told leaders of India Inc at FILA 2022. “I've already reset the target twice during the course of the year, and we are close to touching $250 billion in service exports.” While Covid-19 has caused a blip in India’s fast-paced growth, largely due to the lack of investments from the private sector, the minister reckons that the massive boost to exports in the coming years has the potential to change everyday life of millions of Indians. “I have the courage of conviction to say that India is well on track to give us both services and goods touching a trillion dollars in the next 10 years. And that is going to drive India's future. That is going to drive jobs. That's going to take prosperity to the remotest corners of the country and is going to make us a player relevant in international trade. That is going to give us respect." Goyal, who was the chief guest at the Forbes India Leadership awards also believes that the Indian government’s flagship program, the Gati Shakti will eventually lead to better planning and implementation of new projects, helping fast track numerous government projects in the country. The Gati Shakti program intends to incorporate the infrastructure schemes of various ministries and state governments, including the Bharatmala, Sagarmala, inland waterways, and UDAN scheme, along with economic zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, and agri zones to improve connectivity to help make Indian businesses more competitive. The program will also leverage technology extensively, including spatial planning tools with ISRO (Indian Space Research Organisation) imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics).“It is technologically very tech-savvy,” Goyal said. “Gati Shakti will help with efficient planning, monitor the project better, and throw up red alerts.” Meanwhile, the minister also said that the country’s economic situation has vastly improved compared to 2014 when the Narendra Modi government took charge. “Our foreign exchange reserves were at about $300-odd billion, so much so that the then government had to come up with a scheme to raise $34 billion just to protect the rupee from the free fall that it was witnessing," the 57-year-old said. “Our country did not generate enough enthusiasm amongst investors both in India and abroad to come and invest in India. The banking sector was in shambles with the kind of terrible credit risks that were taken indiscriminately in the 2008-2012 period,” All that, Goyal says, seems to have changed now. And much of that is also thanks to the government's Atma Nirbhar India program, aimed at making the country self-reliant. “We landed up having engagement with countries, which got access to our market, But we didn't have enough stakeholder consultations to be able to ensure that our offensive interests are protected,” Goyal added. “And that's the difference that we are trying to make, whether in our internal decisions as we promote India's Atnanirbhar program. It's not a program that's closing our doors to the world, it's actually opening them wider. We want to engage with the world from a position of strength with confidence. We should be recognised for the quality we offer to the world."
Source: Forbes India
The prime minister also lauded the rise in the market for Ayush products and start-ups related to it Prime Minister Narendra Modi on Sunday said India achieving its export target of USD 400 billion this fiscal shows that the demand for its items is increasing all over the world, and asserted that when every Indian gets 'vocal for local', it does not take much time for the "local to become global". In his monthly Mann Ki Baat radio broadcast, Modi also noted that the government has purchased items worth more than Rs 1 lakh crore in the last one year through Government e-Market with close to 1.25 lakh small entrepreneurs and shopkeepers having sold their goods directly to the government. From a time when only big companies could sell goods to the government to now when even the smallest of shopkeepers can sell their produce, a new India has emerged, he said. "She (new India) not only dreams big but also shows the courage to reach that goal, where no one has reached before. On the basis of this very courage, all of us Indians together will definitely fulfil the dream of an Aatmanirbhar Bharat, a self-reliant India," he said. The prime minister also lauded the rise in the market for Ayush products and start-ups related to it and asked entrepreneurs to try to make their portals in all languages recognised by the United Nations as there are many countries where English is neither spoken nor understood much. "Promote your information keeping such countries in mind as well. I am sure that soon, Ayush start-ups from India with better quality products will reign all over the world," he said. Hailing the potential of Indian products, he said the basis of its strength is the country's farmers, artisans, weavers, engineers, small entrepreneurs, the MSME sector and people from many different professions. "It is only due to their hard work that the goal of exporting to the tune of USD 400 billion has been achieved and I am happy that this power of the people of India is now reaching new markets in every nook and corner of the world," the prime minister said. "When each and every Indian is vocal for local, it does not take long for the local to become global. Let's make the local 'global' and augment the prestige of our products further," he said. He said that India achieving the export target of USD 400 billion, i.e. Rs 30 lakh crore, at first instance, might come across as a matter related to the economy, but it is related to the capability of India. In a way, this means that the demand for items made in India is increasing all over the world and that the supply chain of India is getting stronger by the day, Modi said. The nation takes great strides when resolutions are bigger than dreams, he asserted. When there is a sincere effort day and night for the resolutions, they attain fruition, he added. Noting that new products from all corners of the country are reaching foreign shores, Modi cited leather products from Hailakandi in Assam, handloom products from Osmanabad, fruits and vegetables from Bijapur and black rice from Chandauli. "Now, you will also find the world-famous apricot of Ladakh in Dubai too and in Saudi Arabia, you will find bananas shipped from Tamil Nadu. Most importantly, an array of new products is being sent to newer countries," he said. Exports increased by 37 per cent to USD 400 billion during April-March 2021-22 against USD 292 billion in 2020-21. For the first time ever, India's merchandise exports have crossed USD 400 billion in a fiscal. In 2018-19, the outbound shipments had touched a record of USD 330.07 billion. In his remarks, he also highlighted that during the last one year through the Government e-Marketplace (GeM) portal, the government has purchased items worth more than Rs 1 lakh crore. Close to 1.25 lakh small entrepreneurs and shopkeepers from every corner of the country have sold their goods directly to the government, he pointed out. "There was a time when only big companies could sell goods to the government. However, the country is changing now; the old systems are also changing. Now even the smallest of shopkeepers can sell one's goods to the government on the GeM Portal this is the New India," Modi said. The market of the Ayush industry is reaching around Rs 1.40 lakh crore to around Rs 22,000 crore six years ago, Modi noted. In his address, Modi also paid tributes to Jyotirao Phule and B R Ambedkar, both of whom having birth anniversary in April, and Phule's wife Savitribai Phule, also a social reformer. He recalled their contributions to society. He also mentioned yoga exponent Swami Sivanand, who recently received Padma award at the age of 126. The entire nation is inspired by him, and his life and exemplary work give important lessons in health and fitness, he said. In the broadcast, he also mentioned people working for cleanliness and ensuring water for animals and birds and urged everyone to save every drop of water and work for recycling of water. "Be it the construction of check dams or rain water harvesting, individual efforts are also important in this and collective efforts are necessary too. For instance, at least 75 'amrit sarovars' can be made in every district in the Azadi ka Amrit Mahotsav. Some old lakes can be rejuvenated; some new ones can be dug," the prime minister said.
Source: Business Standard
The Central Government (Department of Revenue, Ministry of Finance), on the basis of the recommendations of the Directorate General of Trade Remedies (DGTR), Department of Commerce, has imposed anti-dumping duty for five years on five Chinese products recently namely certain flat rolled products of aluminium, sodium hydrosulphite, silicone sealant, hydrofluorocarbon (HFC) component R-32 and hydrofluorocarbon blends. Apart from the above five products, the DGTR has recommended imposition of antidumping duty on other products originating in or exported from China PR in 2021-22. The details of these products are given below:
|
Sr. No |
Product |
|
1 |
Methyl Acetoacetate |
|
2 |
Phthalic Anhydride |
|
3 |
Aluminium foil 80 micron and below |
|
4 |
Seamless Tubes and Pipes |
|
5 |
Certain aceto-acetyl derivatives |
|
6 |
Axle for Trailers |
|
7 |
Untreated Fumed Silica |
|
8 |
Decor Paper |
|
9 |
Axle for Trailers |
|
10 |
Porcelain Vitrified Tiles |
|
11 |
Copper and Alloy FRP |
|
12 |
Acrylonitrile Butadiene Rubber (NBR) |
|
13 |
Rubber Chemical PX-13 |
|
14 |
Polyester Spun Yarn |
|
15 |
Melamine |
|
16 |
Glass fibre |
|
17 |
Vitamin-C |
|
18 |
Cold Rolled Flat Product of alloy or Non-Alloy Steel |
|
19 |
Hot Rolled Flat Products of alloy or Non-alloy Steel |
|
20 |
Ceftriaxone Sodium Sterile |
|
21 |
Persulphates |
|
22 |
1,1,1, Tetrafluroethane or 134a of all types |
|
23 |
Colour coated / pre-painted flat products of alloy or non-alloy steel |
|
24 |
Wire Rod |
|
25 |
Elastomeric filament yarn |
|
26 |
Amoxycillin Trihydrate |
|
27 |
Plastic processing machinery |
|
28 |
PU Leather |
|
29 |
N, N′-Dicyclohexyl Carbodiimide (DCC) |
|
30 |
Ceramic Tableware and kitchenware |
This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Rajya Sabha today.
Source: PIB
A new FTP, which is being firmed up keeping in view fresh external headwinds as well as opportunities, is expected to be hammered out by then. The government is set to extend the validity of the current foreign trade policy (FTP), which provides a road map for boosting external commerce in goods and services, by six months through September 30, a senior official told FE. The extension will lend predictability to the policy regime for exporters and enable them to continue to get incentives under a clutch of extant programmes without any hiccups at a time when the Russia-Ukraine war has caused massive disruptions in global supply chains and impaired their ability to honour supply commitments on time. A new FTP, which is being firmed up keeping in view fresh external headwinds as well as opportunities, is expected to be hammered out by then. Merchandise exporters are currently entitled to support under a clutch of programmes, including tax remission schemes (RoDTEP and RoSCTL), interest equalisation scheme and transport subsidy scheme (for farm exports). The validity of the current FTP for 2015-20 was already extended by two years through March 31, 2022, in the wake of the Covid-19 pandemic, mainly to maintain policy stability and soften the blow to exporters. The government has earmarked Rs 21,340 crore for the Remission of Duties and Taxes on Exported Products and the Rebate of State & Central Taxes and Levies in the Budget for FY23. Similarly, under the interest equalisation scheme, the government has budgeted Rs 2,622 crore for FY23, against Rs 3,151 crore (RE) for FY22. Under the recently-revamped equalisation scheme, large manufacturing and merchant exporters will get an interest subsidy of 2% on pre-and post-shipment rupee credit for the outbound shipment of 410 products. Similarly, the subsidy for manufacturing MSMEs is pegged at 3%. The incentives are crucial to achieve sustained growth in exports and bolster the country’s share in global merchandise shipments, which stood at just 1.7% in the pre-pandemic year of 2018 and 1.6% in 2020. Earlier this week, India’s merchandise exports exceeded an ambitious target of $400 billion for FY22 nine days before the fiscal year is set to end, staging a smart rebound after a 7% slide last fiscal in the wake of the Covid outbreak and surpassing the previous high by a wide margin. The government now expects goods exports to hit $410 billion by the end of this fiscal.
Source: Financial Express
The technical experts from both sides came together for discussions in 64 separate sessions covering 26 policy areas. India and the UK concluded the second round of talks for a proposed bilateral Free Trade Agreement (FTA) in London last week and exchanged notes on the trade concessions both sides were looking at, the government said on Friday. The two sides are expected to meet again in April in Delhi for the third round of talks to explore the possibility of signing an early-harvest deal. A section of the Indian delegation leading the discussions was housed in a dedicated UK negotiation facility, while others attended the meet virtually, the ministry of commerce and industry said. Technical experts from both countries attended 64 sessions covering 26 policy areas, it added. The negotiations are significant considering that the UK is India’s seventh-largest export market. It accounted for 2.8% of shipments as of June 2021. While India had a $3.3 billion trade surplus in 2020-21 it has been losing market share for key products to other developing countries following the withdrawal of the Generalized System of Preferences by the UK administration Recently, both countries committed to more than double the UK-India trade value by 2030. During the second round of talks, New Delhi sought duty concession for labour-intensive exports, such as textiles, besides easy market access for Indian fisheries, pharma and agricultural products. In a recent report, UK think-tank Resolution Foundation said British firms will benefit from the “first mover" advantage ahead of the European Union and the US if it concludes the FTA with India. In February, India concluded a comprehensive economic partnership agreement with the UAE, the first bilateral trade deal signed by the Narendra Modi administration since it came to power in 2014. India is also negotiating early-harvest agreements or mini FTAs with Australia and Canada. Meanwhile, commerce and industry minister Piyush Goyal told the Parliament on Friday that the Centre was taking steps to protect India Inc. from the fallout of Ukraine war, Western sanctions on Russia, and the surge in global commodity prices. “Various measures are being taken to ensure payments (to exporters) come on time. In terms of facilitation for importers and exporters, the government is in dialogue with all who are impacted by the Ukraine crisis," said Goyal.
Source: Live Mint
Indian wheat exports are set to cross 70 lakh metric tonnes this year from merely 2 lakh metric tonnes two years ago. The government is continuously monitoring the opportunities that the RussiaUkraine war has opened up for India and is in dialogue with traders to ensure more exports of wheat and other commodities, Commerce Minister Piyush Goyal told the Rajya Sabha on Friday. Replying to supplementaries during Question Hour, he said Indian wheat exports are set to cross 70 lakh metric tonnes this year from merely 2 lakh metric tonnes two years ago. Goyal said many ships and containers have been blocked in several European countries following the Russia-Ukraine war and the crisis has only deepened, especially after the Covid-19 crisis. "The government has maintained dialogue with shipping companies and those who operate containers. The government is keeping a close watch on the situation and whatever steps are required to be taken it will take action," he told the members in the upper house. He also said that the government is in dialogue with exporters and importers and those involved in business and various measures are being taken to ensure that payments come on time and businesses do not suffer. "India, despite the constraints due to Covid, has achieved exports of USD 400 billion, which is historic as India has never achieved this figure," he also said. The minister said India has been continuously monitoring the opportunities this opens up for India and Indian exporters. "We have produced good quality wheat and our exports have grown. From 2 lakh metric tonnes two years ago, our exporters have exported 10 times more than 21 lakh metric tonnes last year and in the current year, we will close the year with over 70 lakh metric tonnes in a year. We are working in coordination among various ministries for a smooth shift. Because Ukraine and Russia were large exporters of wheat, we are on track to increase our wheat exports to current importers. Agriculture department is in dialogue with various countries for the process to be speeded up and expedited so that newer markets for wheat can be sought," Goyal said. He said when the entire government is involved in this, efforts are there to provide high-quality wheat, just as Indian rice has become a premium product in the world. To another supplementary, the minister said as regards trade is concerned, trade stands on its own legs and diplomacy. and geo-politics stands on its own legs. "It is important that the two should not be mixed up, while one may have an impact on the other." Due to our excellent relations with many countries, Goyal said, we are able to expand our trade and there is excitement and interest among many countries to have economic partnerships. "However, our national interests and strategic interests will always be supreme over any bilateral relations that we may have with any country," he noted. In his written reply on the impact of the Ukraine crisis on Indian industry and commerce, Goyal said, "The impact can be assessed only after the situation stabilizes. However, the Department of Commerce is holding regular consultation with all stakeholders to ensure availability of essential imports and to find alternate destinations for our exports." Sunflower oil imports have been affected as it largely came from Ukraine, it has a smaller proportion in our edible oils basket. But, whenever there is a situation like this it obviously has an impact all over the world and almost all edible oil prices in the entire world have shot up today because of the Russia-Ukraine war, he said. "Therefore, this is an impact that we are also facing. Fortunately, our farmers are doing a good job and we are looking at a much more robust mustard crop this year. This is also a good opportunity for us to diversify to oilseeds and other crops," he said. To another supplementary on the MSME sector, the minister said it is an extremely important sector and the mainstay of the nation's economy and directly and indirectly they continue to contribute in a very big measure to our economy and to the export that India does. In the years to come, their role is going to become increasingly more important, he quipped. "Engineering has seen a growth of nearly 50 per cent. Auto components and some other small engineering items are actually highly job-creating and there is a major thrust on them. Technology and the adoption of new-age requirements of the world have also been our mainstay," he said. With mobiles being one of the biggest success stories that India has and large mobile manufacturers have set up shop in India, he said the new policy that Rs 76,000 crore is being offered as support from the Government of India to promote the semi-conductor industry to come in India is another massive initiative. Never before has India come out with such a robust and futuristic technology-oriented policy and I am confident that India will soon become a global player in the semiconductor industry, he noted
Source: Economic Times
With an objective to provide financial assistance to group of entrepreneurs to establish state–of-art infrastructure facilities in a cluster for setting up their textile units, Ministry of Textiles has been implementing Scheme for Integrated Textile Park (SITP). The scheme has provisions to support setting up units of textile value chain viz. spinning, weaving, processing and garmenting etc. Under SITP, 1947 units are operational across the country. Out of 1947 units, 454 units are operational in South Region, of which 42 units are operational in the State of Karnataka. In order to create an integrated workspace and linkages based entrepreneurial ecosystem for (i) promoting entrepreneurship in apparel manufacturing; (ii) creating additional manufacturing; (iii) generating additional employment opportunities; Scheme for Incubation in Apparel Manufacturing (SIAM) was launched during the 12th Five Year Plan. During this period three project were approved viz. 1. Incubation Centre in Gwalior; 2. Incubation Centre in Apparel Manufacturing at Bhubaneshwar 3. Incubation Centre in Apparel Manufacturing at Panipat. Steps taken by the Government to promote apparel manufacturing and its export in the country are:- (i) Production Linked Incentive (PLI) Scheme for textiles for Man Made Fibre Fabrics & Apparel, and Technical Textiles has been launched in 2021-22. It is expected to attract investment of Rs. 19000 crore for manufacturing of notified product of the sector and will be able to provide employment opportunity for 7.5 lakh persons. (ii) PM Mega Integrated Textile Regions and Apparel (MITRAs) Parks Scheme to set up 7 Mega Textiles Manufacturing Parks in the country has also been launched in 2021-22. This will reduce logistics cost and will improve Competitiveness of Indian textile manufacturing. Once completed each park is expected to provide employment to 1 lakh persons directly and 2 lakh persons indirectly. (iii) In order to make textiles products cost competitive and adopting the principle of zero rated export, the Union Cabinet has given approval for continuation of Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) till 31st March 2024. The other textiles products (excluding Chapter 61, 62 and 63) which are not covered under the RoSCTL are eligible to avail the benefits, if any, under RoDTEP along with other products. (iv)Apart from this, the Government is also running Schemes viz. Amended Technology Up-gradation Scheme (ATUFS), Integrated Processing Development Scheme (IPDS), National Technical Textile Mission (NTTM), etc. for holistic development of textile sector. This information was given by the Minister of state for Textiles Smt. Darshana Jardosh in a written reply in the Rajya Sabha today.
Source: PIB
The MSME Ministry has approved 41 bamboo clusters since FY14-15 till now through a financial assistance of Rs 98.64 crore. It has benefitted about 9197 artisans, informed Minister of State for MSME, Bhanu Pratap Singh Verma in a written reply to the Lok Sabha. In FY20-21 under the Prime Minister’s Employment Generation Programme (PMEGP) 309 units have been assisted with Rs 461.68 lakh disbursed as margin money subsidy. PMEGP helps in setting up of micro-enterprises in the non-farm sector including under Bamboo industry. The number of bamboo units assisted has increased every year since FY2018-19, seeing an addition of 81 units. Similarly the margin money subsidy disbursement has also improved which shot up from Rs 282.17 lakh to Rs 461.68 lakh in a span of 4 years. Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI, financial assistance of up to Rs 2.5 crore is given to 'Regular Clusters' having up to 500 artisans, and up to Rs 5 crore to 'Major Clusters' having more than 500 artisans. Major sectors supported under SFURTI are Bamboo, Honey, Textiles, Agro Processing, Handicraft, Khadi, Coir, etc.
Source: KNN India
The government is racing against time and odds to establish a world-class mega textile park near Raptadu in Anantapur district. While the outbreak of Covid-19 in the first quarter of 2020 delayed the plan, the government is now gearing up to expedite the establishment of the mega project which is expected to transform the region into a major textile hub. Confirming the developments to STOI, YSRC Raptadu legislator Thopudurthi Prakash Reddy said the AP Industrial Infrastructure Corporation Limited (APIIC) has already earmarked 171.17 acres of land in Raptadu assembly constituency to set up the mega textile park. He said flaws in the Andhra Pradesh Textile Policy 2018-23, issued by the previous TDP government, had to be set right by the YSRC government to move forward with the plan. "The TDP government never issued operational guidelines. Due to the difference in interpretation by the industries department and the handlooms department on certain aspects of the policy, it never became operational." "The YSRC government also reviewed the indiscriminate land allocation made during the tenure of the TDP government. It is now proposed to make land allotment to industrial units in the form of lease. Land can be purchased by the unit only after ten years of operation. This move is intended to safeguard the interests of the state", Thopudurthi Prakash Reddy added. "The Indian apparel market which shrunk from $78 billion in 2019 to $55 billion in 2020 (30% decline) is expected to grow and reach $135 billion by 2025 and Andhra Pradesh will tap a major chunk of these figures by establishing the state-of-the-art mega textile park in Anantapur district," said the MLA.
Source: Times of India
The tensions between Russia and Ukraine continue to place the world order into greater uncertainty. Global economic recovery is expected to slow down after consistently picking up pace in 2021. Most notable economic impact is being felt through the commodity as well as logistics sectors, where costs have shot up rapidly. A dramatic rise in prices of major fuel products and food staples is likely to impact growth prospects of major economies. These are expected to add to already high inflation levels in the European economies particularly, which are more dependent on supplies from Russia and Ukraine. While oil prices and supply have continued to be a concern for many economies, China and India have secured supplies of Russian oil at discounted prices. However, due to the sanctions, other countries have been on a search to find alternative sources of fuel. Latest condition from Russia that mandates countries to pay for its oil in rouble has put further pressure on the economies across the world which depend heavily on its energy exports.
Impact on freight – ocean, air, and rail On the trade front, flows through sea have remained largely unimpacted due to the war. The largest impact on ocean freight from the war perhaps has come from disruptions to flows to and from Russia. Maersk and other major shipping companies have stopped taking orders to and from Russia, which may perhaps disrupt overall global trade to a certain extent. Even then, shipping rates from Asia to Europe/US have remained relatively stable and have fallen recently; however, they are still much higher than last year. Derry’s World Container Index shows a decline in overall prices to $8,470 per 40-ft container as on March 24, 2022. This is 10.6 per cent lower than container prices last month, almost a 10 per cent drop from mid of January 2022 and more than an 18 per cent drop from the peak achieved in September 2021. All routes that would have supposedly been disrupted due to the Russia-Ukraine war are seeing easing of rates. Rates on ChinaEurope and China-US routes were down by almost 2-8 per cent between March 17, 2022, and March 24, 2022.1 In one of its recent research notes (March 22, 2022), Freightos, an online marketplace for shipping industry, also indicates these trends in the shipping industry. Despite surging coronavirus cases in major port cities in China, port operations have not been disrupted as severely as Yantian last year. But export volumes in China were also lower for the month of February 2022 which largely reflects the ease in shipping rates. However, the note mentions that the easing in rates is perhaps temporary, and they are expected to rise due to increasing volumes. In the latest Global Port Tracker published by National Retail Federation and Hackett Associates in the US, it is suggested that import demand in the US continues to be strong and will likely remain so due to stronger economic recovery there.2 Corroborating facts from Freightos, the note mentions imports from Asia to be lower m/m in February 2022 but relative to last year, imports were almost 11 per cent higher. The estimates for the next few months point towards much greater demand facing the logistics sector and therefore increased congestion at the ports. Contrary to the expectation, the current conflict between Russia and Ukraine has perhaps eased some pressure on ocean freight, leading to more blank sailings to Europe. Inflationary pressures are also contributing tremendously to the current demand slowdown and the easing of pressures on ocean freight rates. Air freight rates on the other hand are climbing up despite the fact that demand has softened more recently. DHL in its most recent update on Air Freight sector mentions that 17 per cent of global trade through air has been impacted due to the Russia-Ukraine conflict. The conflict, through closing of airspaces and heightened uncertainty of demand, has impacted manufacturing and cargo movement across different trade routes. Closing of the Russia-Ukraine airspace has led to lengthy transit times on major routes, constraining capacity further. In addition to this, there are labour issues at major airports in Europe and Asia-Pacific leading to disruption in warehouse activities and further delays in transit times.3 Rail freight has also been impacted heavily from the conflict, resulting in much of the freight flows shifting to ocean. The most important rail link connecting China to Europe goes through parts of Russia and Ukraine and has seen disruptions due to the current conflict. The China-Europe rail link carried goods worth $75 billion last year and was a significant alternative to ocean trade in 2021, when port container shortages were at their peak. Much of the trade flows between China and Europe through rail is therefore suspended and has shifted to maritime. This has also impacted trade between Vietnam and Europe as the rail link between the two regions is also halted for the time being. Trade flows from Bangladesh which were being routed through China are also likely to get disrupted because of this.
Impact on textile and apparel industry from the conflict A major concern regarding trade flows with Russia and specially pertaining to Asian countries such as Bangladesh and Vietnam relates mostly to payment issues due to the sanctions. This could hurt Asian as well as India’s textile and apparel industry; however, the textile and apparel demand from Russia is not as significant. Russia imported $650- 700 million of textile and apparel products every month from Asian countries (Figure 1), half of which constitutes only apparel imports. If Russian imports stop or shrink dramatically for some time due to the sanctions, it will cost the Asian countries close to $1-2 billion or more in export revenues depending on how long it continues. Countrywise, China is expected to see a much larger impact as its textile and apparel exports to Russia are the largest, which are close to $400 million every month. However, China’s internal supply challenges and surge in COVID-19 infections have also impacted its exports tremendously. Bangladesh is the second largest exporter to Russia, sending close to $90-100 million every month. India exports close to $18-20 million of textiles and apparel to Russia every month and will perhaps see a reduction in its exports revenues of this amount in the coming months.
One significant cause of concern for the global textile and apparel industry is the rising cost of essential raw materials such as crude oil and rising cost of food, which in turn raises the cost of labour. Several of the Asian economies are dependent heavily on coal and oil from Russia, and food supplies from Ukraine. UNCTAD update on the RussianUkraine crisis shows that Turkey, China, Egypt, and India are the countries that are most dependent on food supplies from Russia and Ukraine. These are incidentally also major textile and apparel suppliers globally. Inflation in Turkey has skyrocketed to almost 54.44 per cent in February 2022, which is expected to significantly impact sourcing from the country. Consumer prices inflation in Bangladesh has also risen rapidly to 6.17 per cent, predominantly due to increase in food prices. On the other hand, textiles and clothing demand is expected to be impacted heavily as prices of textile-apparel and leather products are also expected to rise sharply. The UNCTAD note suggests a 10 per cent rise in consumer prices for textiles, apparel, and leather products due to a rise in container freight rates. The analysis is restricted only to impact from freight rates which hasn’t happened yet. However, the actual impact may perhaps be higher when raw material and labour costs are factored into the consumer prices
Source: Fibre 2 Fashion
The non-profit organisation UK Fashion and Textile Association (UKFT) and the Textile Livery Group have come together for a one-day conference that will share best practice on sustainability within the UK textile industry and discuss how the sector can grow its capacity and capability, while remaining competitive. The conference will be held on May 12. Speakers from UK manufacturers, global brands and a variety of textile innovators will share experiences to help businesses and the wider industry to promote their own sustainable credentials, UKFT said in a press release. During the day, leaders from UK textile manufacturers will hear about what sustainability means to various businesses and how they have started to address some of the challenges ahead, all with an emphasis on how the UK textile manufacturing industry can use sustainability to boost its competitiveness. Delegates should be leaders from UK-based textile manufacturing companies, rather than fashion brands, retailers, garment manufacturers or others from outside of the UK textile supply chain, the release added.
Source: Fibre 2 Fashion
Industry leaders are now prioritising environmental concerns and social purpose In the past, the industry has faced intense criticism about its environmental footprint, where many brands have established their own sustainability commitments and strategies. More recently, sustainability leaders in the fashion industry have begun moving beyond this and proactively addressing environmental concerns at the beginning of the value chain — when garments are designed. A number of techniques can be adopted to design products with a low environmental impact and a positive social purpose. Zero-waste pattern cutting It has been estimated that 15% of textiles intended for clothing ends up on the cutting room floor. Why waste precious resources? The zero-waste approach means you need to know your textile dimensions to be able to design the garment. Likewise, you need to know your design dimensions to source your textile. You will need to carefully plan how to use pieces of textile, by arranging pattern pieces like a jigsaw puzzle. The best way to lay out pattern pieces on fabric is to follow pattern directions for layout options. Alternatively, you can lay your patterns in a number of ways to make the most of the fabric available from upside down, backwards and diagonally. You can also design directly by draping the entire piece of textile on the body or body form. Minimal seam construction This technique reduces the number of seams required to sew a garment together. It makes manufacturing quicker, saves materials, allows the garment to have greater freedom of movement, and ensures better comfort for the wearer. Seamless garments are preferred for their comfort, snug-fitting, durability, and aesthetic characteristics. Seamless technology has wider application in various areas such as upholstery, textiles across automotive, industrial, sports, and medical fields, and intimate apparel, apart from general apparel. Some companies, like The North Face, an American outdoor recreation products company, are investing in technology that can fuse seams together, meaning no sewing is required. The Fuse Uno, a mountaineering jacket from the company, is made from just one piece of material. Upcycling In this approach, you transform by-products, waste or disused materials or products into something new of better quality. By reusing materials that already exist, you are saving energy, water, chemicals and other resources chic handbags made from plastic bags. One can source deadstock fabric from places like Queen Of Raw, Amothreads, Offsetwarehouse, Measurefabric, Blackbirdfabrics, Fabcycle, Metermeter, and Thefabricstoreonline. Some factories in Karnataka that work with waste fabric and secondhand garment are Cornucopia Concepts Pvt. Ltd, The Upcycle Co and Rimagined. Design for disassembly (Dfd) Design your product in a way where it can easily be taken apart at the end of its life, so that components can be repaired, reused or recycled. This will mean the product will have to be easy to assemble and could likely require fewer materials — meaning it could help save costs and your product’s environmental footprint. Multi-functional The strategy means designing products for multiple purposes. In fashion, you might design a garment that could be worn multiple ways or something that is reversible. Design for longevity Experts from the clothing industry have found four fundamental areas where changed design practices can help ensure the longevity of the items. Size and fit – Clothes must be adjusted to allow for reasonable variations in an individual’s shape. Fabric quality – Higher quality fabrics are more likely to withstand wear and tear over a prolonged period. Colours and styles – ‘Classic’ or timeless styles and colours are less likely to go out of fashion. Care – Appropriate advice on care and opportunities for re-use and recycling must be given with the product. Craft preservation Incorporate age-old, ancestral craft techniques into modern designs for preservation of the craft. The process also includes understanding the global market, promotional strategies and how trade fairs work. Not to forget, increase interaction with the consumers.
Source: Deccan Herald
Researchers have found a way to prevent short-circuiting in yarns designed to store electrical energy, an advance that could help the development of ‘smart textiles’. The team at North Carolina State University (NC State) reported in npj Flexible Electronics that they prevented short-circuiting in yarns that act as supercapacitors by wrapping the yarns with insulating thread. They also tested the strength and durability of the yarns to ensure they worked after going through knitting and weaving processes. “A supercapacitor functions like a battery, but in this case, we’re working on a flexible battery shaped as a textile yarn that you could weave or knit into your T-shirt or sweater,” said Wei Gao, associate professor of textile engineering, chemistry and science and a University Faculty Scholar at NC State. “In this study, we have woven this yarn into a piece of fabric so that it can store electrical energy, and eventually we want to use it to power whatever electronic devices you need, whether it be a sensor, a light or even a cell phone.” MORE FROM ELECTRONICS & COMMUNICATIONS According to NC State, research into these so-called ‘yarn-shaped supercapacitors’ is promising, but developers face a consistent problem with their design because the yarnshaped supercapacitors are more likely to short circuit as their length increases. “Everybody is trying to make smart electronics that can be incorporated into cloth or fabric,” Gao said in a statement. “What we found is if you try to make a supercapacitor yarn longer than eight inches, it’s pretty easy for this device to short-circuit.” Resolving this, the researchers tested what would happen when they wrapped the supercapacitor yarn electrodes with insulating threads. According to NC State, the idea was that the threads would act as a physical barrier, keeping the opposite electrodes from contacting each other and preventing short-circuiting. They tested their device’s performance by connecting the electrodes to a power source and recording the device’s current response. They also tested how well the yarns were able to hold a charge. They found that the yarns kept 90 per cent of the initial energy after charging and discharging them 10,000 times. The researchers also tested to see if they could withstand bending and stretching by weaving their yarn-shaped supercapacitors into a fabric. “The yarns need to be flexible and strong enough so that when you bend, stretch and press them, they keep their original electrical performance after all of those mechanical deformations,” said the study’s lead author Nanfei He, postdoctoral research scholar in textile engineering, chemistry and science at NC State. “The yarns all kept their original performance, even after going through weaving and knitting.”
Source: The Engineer
AS the first quarter of 2022 comes to an end, Malaysia is about to see the opening of its borders come April 1, as we begin transitioning into the endemic phase. With most of the standard operating procedures (SOPs) greatly loosened, most businesses, except nightclubs and pubs, have resumed normal business operations. Things are looking up, as the Malaysian Investment Development Authority said in early March that the foreign direct investment (FDI) net inflow in 2021 was RM54.9bil, far exceeding 2020’s RM14.63bil and better than 2016’s RM47.02bil. Among the FDI, the newly approved investment capital of RM30.65bil was mainly from the electrical and electronics (E&E) industry. In January 2022, Malaysia’s foreign trade volume reached RM203.05bil, a 24.8% year-on-year increase, while the trade surplus was RM18.4bil, an increase of 10.9%. These clearly showed that Malaysia’s economy is on track towards recovery. The good vibes, however, were somewhat dampened by the Russian-Ukraine war since late February, causing turbulence to the global economy. Also, the raging Omicron variant of Covid-19 has seen our daily positive cases lingering between 20,000 and 30,000. Besides, rumours of the general election following Barisan Nasional’s landslide victory in the recent Johor state election is still looming. These uncertainties have more or less cast a shadow on our road to recovery. I recently spoke at a webinar by the China Enterprises Chamber of Commerce about Malaysia’s business environment in 2022, where I shared my insight on the potential challenges posed by an uneven economic recovery. We have often talked much about the crises and threats we face in the past two years. Now, let’s look further into discovering the underlying opportunities to fully capitalise on them amid the current “dual war” situation - fighting a global health crisis and a war. The Regional Comprehensive Economic Partnership (RCEP) came into effect in Malaysia on March 18. The Ministry of International Trade and Industry has estimated that Malaysia would be the most-benefited Asean member country from RCEP in terms of exports. Before RCEP came into effect, 64.6% of Malaysia’s tariff items enjoyed zero-tariff treatment among RCEP member countries. With RCEP now, an additional 5.4% of tariff items enjoy this treatment. While RCEP’s ultimate goal is for 90% tariff items to enjoy zero tariffs, RCEP will bring more space for new exports growth and easier access among Malaysian enterprises to the RCEP member countries’ markets. Local manufacturers and suppliers can obtain cheap and high-quality raw materials, provide more competitive products and services, which in turn benefit related industries and consumers. With opportunities, RCEP also comes with challenges. This is especially for the textile and timber industries, where businesses will see fierce competition from other low-cost Asean countries, such as Vietnam and Cambodia. However, the more open the market means more opportunities for the enterprises. We should not close ourselves off to avoid competition. Instead, enterprises need to ensure that their products and services meet the market requirements, and they can even create demand and be the leader in the market. After all, it has been years since the RCEP negotiation began while its content has been finalised then. Enterprises should have been prepared instead of only reacting to it. Malaysia’s economic prospects are optimistic moving forward. Our FDI rose significantly in 2021, and the Netherlands is now the country with the largest investment in Malaysia. The United States News & World Report ranked Malaysia as the fifth best country to invest in the world in 2021. In the 2022 Global Opportunity Index published by the Milken Institute, Malaysia is the only nation among selected Asean countries, where its Emerging Markets and Developing Economies Benchmarks (EMDE Benchmarks) were rated above the standard index for business perceptions, economic fundamentals, financial services, institutional frameworks, and international standards and policies. The government has introduced various preferential policies and tax subsidies to encourage more FDI. These perks include enjoying between 0% and 10% tax rate for five to 15 years proposed in Budget 2021 for companies that relocate to Malaysia, including manufacturers of pharmaceutical products to invest in Malaysia, to establish global trading centres and principal hub in Malaysia. Enterprises that invest in the five special economic zones can also enjoy special tax incentives and subsidies. Also, there are other investment incentives to spur economic growth, especially in the lucrative high-tech manufacturing and service industries, such as the information, technology and green industries; halal financing, products and markets; traditional medicine and healthcare, as well as shipping and logistic industry. These incentives are also meant for local enterprises and investments. Therefore, we should seize the opportunity to make good use of these perks and various financial assistance to transform and automate. This is especially important following the worsening labour shortage and the increase of the minimum wage - which warrant a gradual shift from a labour-intensive operation. We can only improve our productivity and competitiveness by adopting automation and going electronic. For operations that must rely on a lot of manpower, companies may consider making good use of the RCEP regulations and outsourcing these requirements to other member countries with lower labour costs, so that they can focus more on developing their core technologies and services. The 12th Malaysia Plan announced last year has mapped out Malaysia’s development direction in the next five years, as well as the key industries to focus on, following analysis of the international development trends and Malaysia’s situations. The key industries are the high value-added, diversified and comprehensive manufacturing industries; high-growth service industries, including halal food, creativity and tourism; and smart agriculture industries. Enterprises should digest the content of the 12th Malaysia Plan carefully, and strive to keep pace with the development trend so that they will have more advantages when applying for various preferential policies and assistance packages while staying in line with international development. Innovation is important in keeping us relevant nowadays. We saw how some companies came up with innovative business methods to encourage sales when our movements were restricted during the pandemic earlier on. We also saw how the online platform became a big part of our life in ensuring smooth business operations, continuous learning and constant communication, reflecting in the brisk sales of the relevant enabling devices and products. With a unique vision and courage to try out new things back then, these businesses have successfully turned the threat into opportunities. Scientist Albert Einstein once said, “the formulation of a problem is often more essential than its solution.” By identifying new problems, one avoids being trapped in old ones and be able to see things from a new perspective, hence formulating new possibilities to stay ahead. So, let’s work hard towards recovery and bid goodbye to the pandemic that has been upending lives for over two years.
Source: The Star
