Minister of state for Textiles Smt. Darshana Jardosh in a written reply in the Lok Sabha today informed that India and UAE have recently signed a Free Trade Agreement which is likely to boost exports of Indian textile and apparels. India is currently in the process of negotiating FTAs with EU, Australia, UK, Canada, Israel and other countries/ region. India is facing tariff disadvantage in some of the markets such as EU, UK etc. as compared to neighbouring competing nations like Bangladesh, Cambodia, Sri Lanka etc. The Government, under its Market Access Initiative (MAI) scheme provides financial support to various Export Promotion Councils (EPCs) and Trade Bodies engaged in promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets etc. Further, in the times of COVID-19 pandemic, virtual exhibitions were also organised by EPCs as an alternative mode of marketing, in order to tap opportunities in the global markets. In order to make textiles products cost competitive and adopting the principle of zero rated export, government has extended 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 covered under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products. The Amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016 for one-time capital subsidy for eligible benchmark machinery. Segments which have got higher employment and export potential such as garmenting and technical textiles are eligible for capital subsidy. In order to supplement its efforts of textile industry in creating jobs and also to address the skilled manpower needs of the industry, Ministry of Textiles is implementing Samarth- Scheme for Capacity Building in Textiles Sector (SCBTS) for the entire value chain of textiles except Spinning and Weaving in the organized sector. Ministry is implementing Textile Cluster Development Scheme (TCDS) from 2021-22 to 2025-26 with a view to create an integrated workspace and linkagesbased ecosystem for existing as well as potential textile units to make them operationally and financially viable with a view to bring benefits of critical mass for customization of interventions, economies of scale in operation, competitiveness in manufacturing, cost efficient, better access to technology and information, etc. Further, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country, Production Linked Incentive (PLI) Scheme for Textiles has been launched. Government has also approved setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites to develop world class infrastructure including plug and play facility.
Source: PIB
Polyester-cotton (PC) yarn prices scaled up by ₹10-15 per kg in last one week in India, because of costlier cotton. The price of cotton eased down today but have breached the ₹90,000-mark for a candy of 356 kg in the southern markets. Costlier crude oil is also pushing up polyester spun and acrylic fibre prices, which shot up by ₹17.50 to ₹229.50 per kg. Meanwhile, Reliance Industries Limited, the market leader of PSF’s intermediary products, has increased prices of PTA and MELT. The company is likely to increase the price of PSF next month. Market sources said that cotton prices eased down today due to price fall in the entire commodity sector due to progress in talks between Russia and Ukraine. But cotton prices witnessed steep rise in last fortnight and have neared the ₹90,000-mark for a candy in north India. A trader from Ludhiana told Fibre2Fashion that spinning mills were able to increase yarn prices because the demand from downstream industry was slightly better, and fabric manufacturers were buying yarn in limited quantity. Crude oil is mostly adopting downtrend in last one fortnight. Recent announcement by Russia to reduce army activities in few cities of Ukraine after peace talks in Turkey sent bearish sign to crude oil. But it is hovering at very high level which is not comfortable for upstream industry of PSF and Acrylic fibre. After steep decline, global oil benchmark Brent crude futures surged 1.02 per cent to $111.35 per barrel. In Ludhiana, India’s most prominent man-made yarn market, 30 Count PC combed yarn (48/52) was sold higher at ₹280-290 per kg (GST extra). 30 Count PC carded yarn (65/35) was priced at ₹260-270 per kg, according to Fibre2Fashion’s market insight tool TexPro. 20 count PC (Recycled-O/E) PSF yarn (40/60) was traded at ₹190-195 per kg. Acrylic NM (2/48) was priced at ₹315-320 per kg and acrylic NM (2/32) at ₹280-290 per kg. Acrylic fibre shot up by ₹17.50 to ₹229.50 per kg. PSF was noted stable at ₹123 per kg. PSF’s raw materials also went up. RIL increased prices by ₹3.80 per kg and ₹3.27 per kg for PTA and MELT respectively on last Saturday. The raw materials were traded as PTA ₹92.30 per kg, MEG ₹62.30 per kg and MELT ₹100.91 per kg. ICE cotton futures edged lower on Tuesday amid weakness in wider commodities on signs of momentum in Russia-Ukraine peace negotiations. Cotton contract for May 2022 closed at 136.81 cents, down 226 points; July 2022 closed at 133.25 cents, down 206 points; December 2022 closed at 111.04 cents, down 26 points. In north India, Cotton prices softened by ₹200-300 per candy on Wednesday amid reduced demand from the mills at higher prices, while daily arrivals registered a decrease. In Punjab, cotton was quoted at ₹88,300-89,400 per candy. In Haryana, the prices were ruling at ₹86,500-88,600 per candy. In Upper Rajasthan, cotton was priced at ₹88,800- 89,500 per candy. In Lower Rajasthan, cotton prices noted at ₹82,600-84,400 per candy.
Source: Fibre2 Fashion
Polyester-cotton (PC) yarn prices scaled up by ₹10-15 per kg in last one week in India, because of costlier cotton. The price of cotton eased down today but have breached the ₹90,000-mark for a candy of 356 kg in the southern markets. Costlier crude oil is also pushing up polyester spun and acrylic fibre prices, which shot up by ₹17.50 to ₹229.50 per kg. Meanwhile, Reliance Industries Limited, the market leader of PSF’s intermediary products, has increased prices of PTA and MELT. The company is likely to increase the price of PSF next month. Market sources said that cotton prices eased down today due to price fall in the entire commodity sector due to progress in talks between Russia and Ukraine. But cotton prices witnessed steep rise in last fortnight and have neared the ₹90,000-mark for a candy in north India. A trader from Ludhiana told Fibre2Fashion that spinning mills were able to increase yarn prices because the demand from downstream industry was slightly better, and fabric manufacturers were buying yarn in limited quantity. Crude oil is mostly adopting downtrend in last one fortnight. Recent announcement by Russia to reduce army activities in few cities of Ukraine after peace talks in Turkey sent bearish sign to crude oil. But it is hovering at very high level which is not comfortable for upstream industry of PSF and Acrylic fibre. After steep decline, global oil benchmark Brent crude futures surged 1.02 per cent to $111.35 per barrel. In Ludhiana, India’s most prominent man-made yarn market, 30 Count PC combed yarn (48/52) was sold higher at ₹280-290 per kg (GST extra). 30 Count PC carded yarn (65/35) was priced at ₹260-270 per kg, according to Fibre2Fashion’s market insight tool TexPro. 20 count PC (Recycled-O/E) PSF yarn (40/60) was traded at ₹190-195 per kg. Acrylic NM (2/48) was priced at ₹315-320 per kg and acrylic NM (2/32) at ₹280-290 per kg. Acrylic fibre shot up by ₹17.50 to ₹229.50 per kg. PSF was noted stable at ₹123 per kg. PSF’s raw materials also went up. RIL increased prices by ₹3.80 per kg and ₹3.27 per kg for PTA and MELT respectively on last Saturday. The raw materials were traded as PTA ₹92.30 per kg, MEG ₹62.30 per kg and MELT ₹100.91 per kg. ICE cotton futures edged lower on Tuesday amid weakness in wider commodities on signs of momentum in Russia-Ukraine peace negotiations. Cotton contract for May 2022 closed at 136.81 cents, down 226 points; July 2022 closed at 133.25 cents, down 206 points; December 2022 closed at 111.04 cents, down 26 points. In north India, Cotton prices softened by ₹200-300 per candy on Wednesday amid reduced demand from the mills at higher prices, while daily arrivals registered a decrease. In Punjab, cotton was quoted at ₹88,300-89,400 per candy. In Haryana, the prices were ruling at ₹86,500-88,600 per candy. In Upper Rajasthan, cotton was priced at ₹88,800- 89,500 per candy. In Lower Rajasthan, cotton prices noted at ₹82,600-84,400 per candy.
Source: Fibre2 Fashion
Shri Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, invited the business community from the United Arab Emirates (UAE) to come and capitalise on the business-friendly policies and the opportunities that the emerging India is offering to global businesses. “With the cost and trust advantage that India offers, it is time to invest in India. As partners, we can secure each other’s economic future and strengthen our partnership in the post-COVID world,” said Shri Goyal. Shri Goyal was speaking at India’s Honour Day Celebrations at Expo2020 in Dubai. He said, “I believe we are now at the cusp of growth and development in the years to come. India provides talent and investor friendly policies. In most sectors, FDI is open 100%. We have several new initiatives to promote industry like the Production Linked Incentive scheme and the Make in India policy, our efforts to provide Ease-of-doing-Business, all of which will lead to ease of living for our people,” he added. “To the global community, I say, 'Come experience India – the land of opportunities'. Let’s grow together, let’s change together, let’s transform together because together we can surmount any obstacles and achieve humongous goals and targets beyond anyone’s imagination,” said the Minister. Shri Goyal said that the new India is fearless and confident where we wish to see the prosperity of every Indian. “Next 25 years in India will signify a strong and inclusive India,” added the Minister. He said the word ‘trust’ describes India-UAE relationship. “Our ties will remain vibrant and grow from strength to strength,” said the Minister. Shri Goyal said, “The special partnership that Prime Minister, Shri Narendra Modi and H.H. Sheikh Mohammed bin Zayed Al Nahyan share is legendary. It’s a bond of eternal friendship symbolising trust and we are natural partners due to the complementary nature of our economies and increasing trade will always showcase the synergy that the two nations have, strengthening further, our bonds.” “Our shared vision which has opened newer avenues, one of which is the commitment to establish an Indian Institute of Technology (IIT) in the United Arab Emirates,” added the Minister. On government cooperation, Shri Goyal said both the governments supported each other. “We were the brothers working for each other during COVID,” he said. “The Comprehensive Economic Partnership Agreement (CEPA) is a win-win agreement for the good of the people of both the countries,” he added. On the grand success of Dubai Expo, the Minister said that Expo2020 is victory of courage over adversity. “The Expo will go down in history as a memorable chapter where the two brothers came closer. It will conclude but the memories will remain. The India Pavilion is going to be a permanent structure; it is not going to be dismantled. It will stand as a testimony to our two countries working towards the collective good of the people,” added the Minister. The India Pavilion, one of the largest and most iconic pavilions at EXPO2020 Dubai, recorded more than 1.6 million footfalls since its inauguration on October 1st last year. The India Pavilion was inaugurated by Shri Piyush Goyal. Expo2020 Dubai is concluding on March 31st .
Source: PIB
The Union Cabinet on Wednesday approved a World Bank-assisted Rs 6,062 crore funding programme for the small and medium businesses to help improve their access to market and credit. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the Rs 6,062.45 crore or USD 808 million 'Raising and Accelerating MSM Performance' (RAMP) for the micro, small and medium enterprises (MSMEs), an official release said. RAMP will commence in FY23, it said. Of the total outlay under the programme, Rs 3,750 crore (USD 500 million) will come from World Bank loan, and the remaining Rs 2,312.45 crore will be funded by the central government. RAMP will work under the Ministry of MSME (MoMSME) towards resilience and recovery interventions after the coronavirus disease. "The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and state, improving Centre-state linkages and partnerships, addressing issues of delayed payments and greening of MSMEs. In addition to building the MoMSME's capacity at the national level, the RAMP programme will seek to scale up implementation capacity and MSME coverage in states," the release said. The government formulated and proposed RAMP for strengthening MSMEs in line with the recommendations of the UK Sinha committee, KV Kamath committee and the Economic Advisory Council of the Prime Minister (EAC-PM) RAMP programme with impacts across the country will directly or indirectly benefit all 6.3 crore enterprises under the MSME category. A total of 5,55,000 MSMEs are specifically targeted for enhanced performance. In addition, expansion of target market to include service sectors and increase of about 70,500 women MSMEs is envisaged, the release said. RAMP has identified two result areas after preliminary missions and studies, first is to strengthen institutions and governance of the MSME programme and second is to support market access, firm capabilities and access to finance. "Funds would flow through RAMP into the ministry's budget against Disbursement Linked Indicators (DLIs) to support ongoing MoMSME programmes, focusing on improving market access and competitiveness." The disbursement of funds from the World Bank towards RAMP would be made on fulfilling DLIs such as implementing the national MSME reform agenda, accelerating MSME sector Centre-state collaboration, enhancing effectiveness of Technology Upgradation Scheme (CLCS-TUS). The government said the programme will prepare Strategic Investment Plans (SIPs) in which all the states and Union Territories will be invited. The SIPs would include an outreach plan for identification and mobilisation of MSMEs under RAMP, identify key constraints and gaps, set milestones and project the required budgets for interventions in priority sectors, including renewable energy, rural and nonfarm business, wholesale and retail trade, village and cottage industries, women enterprises, among others. The apex national MSME council headed by the minister for MSME will monitor and look after the policy overview of RAMP. An RAMP programme committee headed by the Secretary of MoMSME will monitor specific deliverables, the government said. For day-to-day implementation, there would be programme management units at the national level and in states, comprising professionals and experts competitively selected from the industry to support MoMSME and states, to implement, monitor and evaluate RAMP programme, the release said.
Source: Economic Times
Textile processing industries in the South Gujarat region are working on a plan to import coal directly, which they say can help them save at least 10 per cent on coal prices which in turn will help them bring down the production costs at the units. The processors are discussing the prospects with KRIBHCO to use their port near here and few leading processors are in the final stage to order vessels directly from Indonesia. “We have made multiple proposals to KRIBHCO in writing and the discussions are going on for over six months. We are exploring various ways to bring down the production costs since we are now paying double the price of coal when compared to the prices a year ago,” said Jitendra Vakharia, president, South Gujarat Textile Processors Association (SGTPA). Around 400 textile processing units are operational in South Gujarat and most of them are coal-based. Each unit requires an average of 50 tonne coal daily. “According to a rough estimate, the daily requirement of coal is around 20,000 tonne for all textile processing units in the region. If we import coal directly, we can get it at a price at least 10 per cent less than what we pay now here,” added Vakharia. According to the processors, the prices of imported coal have doubled in all categories. “The coal that was available at Rs 4,500 per tonne a year ago is now available at Rs 9,000. We fear further price rise in coal prices and there may be a 50 per cent hike in next six months,” said Vakharia. SGTPA is planning to supply the imported coal first to its members and to others later.
Source: Times of India
The Government of India has undertaken a number of steps to ensure the quick registration of companies in India, which are as under: i. A single integrated new web form called SPICe+ along with AGILE PRO-S has been deployed. This form provides eleven services related to ‘starting a business’ namely (i) Name Reservation, (ii) Incorporation, (iii) Permanent Account Number (PAN), (iv) Tax Deduction Account Number (TAN), (v) Director Identification Number (DIN), (vi) Employees’ Provident Fund Organisation (EPFO) Registration, (vii) Employees’ State Insurance Corporation (ESIC) Registration, (viii) Goods and Services Tax (GST) number, (ix) Bank Account Number, (x) Profession Tax Registration (Mumbai, Kolkata and Karnataka), (xi) Delhi Shops and Establishment Registration. ii. Zero fee is now charged for incorporation of all companies with authorized capital up to Rs. 15 lakh or with up to 20 members where no share capital is applicable. iii. A Central Registration Centre (CRC) has been set up for name reservation and incorporation of companies & Limited Liability Partnership (LLP) within 1 day. iv. The LLP Incorporation Form called FiLLiP has also been integrated with Central Board of Direct Taxes (CBDT) to provide PAN/TAN at the time of Incorporation of LLP itself. (v) The Companies (Incorporation) Third Amendment Rules, 2020, now provide for extension of reservation of name through a simple web service available at www.mca.gov.in. (vi) Provisions with regard to incorporation and functioning of OnePerson Companies (OPCs) have been revised so as to incentivize incorporation of OPCs. Now, Non-Resident Indians (NRIs) are also allowed to incorporate OPCs. OPCs are now allowed to convert into private or public companies at any point of time. The restrictions with regard to maximum amount of paid-up capital and turnover for OPCs have also been removed. This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.
Source: PIB
Indian ratings agency ICRA recently cut its fiscal 2022-23 (FY23) real gross domestic product (GDP) growth estimate for the country by 0.8 per cent to 7.2 per cent, primarily driven by the fallout of the war in Ukraine. Its chief economist Aditi Nayar attributed the downward revision to elevated commodity prices and also fresh supply chain issues arising from the conflict. Real GDP growth is likely to moderate to 3-4 per cent in the fourth quarter (Q4) of FY22 from 5.4 per cent in Q3, which will lead to FY22 real GDP growth rate at 8.5 per cent, said ICRA. "Higher prices of fuels and items such as edible oils are likely to compress disposable incomes in the mid to lower income segments, constraining the demand revival in FY23," Nayar said in a note. Welcoming the extension of the free food grains scheme till September 2022, she said it will offer some respite to the food budgets of vulnerable households, while in the mid to upper income households, a normalisation of behaviours after the third wave will drive consumption towards the contact-intensive services that were avoided during the pandemic. The Reserve Bank expects FY23 GDP growth rate at 7.8 per cent. The Russia-Ukraine conflict and the associated surge in commodity prices have heightened uncertainty, and the expected margin compression is likely to squeeze GVA growth, ICRA said. Exports of some items will rise to meet global demand amid the supply crunch, and the capacity utilisation levels will rise to 74-75 per cent in Q3 FY23 from 71-72 per cent in Q4 FY22, the agency said, adding this can lead to a ‘modest delay’ in the much awaited broadbasing of capacity expansion by the private sector. An early kick-off of the government’s budgeted capital expenditure programme remains crucial to boost investment activity in first half of FY23, the agency said. "However, a concern is that the execution risk is shifting to the states, with a considerable portion of the step-up in the GoI's budgeted capital spending coming through the enlargement in the size of interest-free capex loan to the state governments to Rs 1 lakh crore in FY23 from ₹15,000 crore in FY22," it added. Nayar said the protracted geopolitical tensions and high commodity prices pose downside risks to the growth outlook, with margin compression set to squeeze the growth of the gross value added (GVA) during the period of the conflict. “Moreover, the K-shaped recovery appears likely to continue with the formal sector gaining market share in FY23," she said, warning that the concerning socio-economic trend will continue. The agency feels healthy reservoir levels offer insurance against a potentially below normal rainfall in 2022, but as economic activity normalises, there could be a shift in the availability of agricultural labour across different regions, affecting acreage in some states, which has been the key driver of agri output during FY21 and FY22. Inadequate availability of fertilisers also poses a concern for the farm sector, it said, pointing out that systemic inventory is significantly below historic levels across all segments of fertilisers chiefly on account of lower imports amid limited availability in the international market, and elevated prices. Even with a normal monsoon and healthy reservoir levels, acreage, output may not rise meaningfully in FY23, constraining agricultural GVA growth below 3 per cent, ICRA added.
Source: Fibre2 Fashion
The textile and garment industry is once again jittery due to the rumours doing rounds that the GST slab of 5 percent on their industry is going to be increased soon. In wake of such development, several delegations of businessmen have already started giving memorandums to the officials of the state and centre GST departments to flag their concern about proposed hike with the centre government. Speaking on the issue, Harish Kairpal, president of Ludhiana MSME association, said “Earlier in the month of January our industry was saved from being destroyed after the GST council dropped its proposal to increase GST on textile and garment products of 5 percent slab to 12 percent. But once again the danger of hike in the tax slabs is looming large on us as we have come to know that discussions are going on to do away with the 5 percent slab which means the products currently taxable in this slab will attract higher rates of tax. If this step is taken then micro and small units into garment and textile industry will be completely wiped off from the map of the country and centre government should therefore ensure that no change in the 5 percent tax slab is done” According to Narinder Mittal, general secretary of Ludhiana Business Forums, “We are totally against any kind of hike in the existing slabs of GST applicable on the industry because even one percent of hike would result in disaster. Already industry is facing huge financial crunch and increase in GST would mean increase in our investments.
Source: Times of India
With industry poised to grow at 14.5% in 2021-22 despite the impact of the second and third waves of Covid-19, the Economy Survey report said the growth projection shows the resilience of the industrial sector of the state. The high growth took place despite the sector shrinking by 10.84% in 2020-21 as the nationwide lockdown played a big disruptor in the demand-supply gap, it said. The survey report said though state-level lockdown started during the second wave, it was less restrictive and kept operation of industrial, MSME and handloom units out of its purview, which helped the sector to bounce back in the 2021-22 financial year to grow at 14.5%. The recovery is more pronounced in Odisha as compared to India as a whole, with the growth of the industrial sector of the country during the current year expected to be 7.7%, said the report. Among different sub-areas, the mining and quarrying sector is estimated to grow at 18% in 2021-22 on a lower base. The construction sector grew significantly in 2021-22 by 13%. Similarly, electricity grew at 8% during the year. Since 2012-13, on an average, industrial sector in Odisha have grown at 6.4% compared to the all-India average of 4.6%. The sector is poised to grow significantly in the years to come, said the report. It has attributed the growth to enabling infrastructure and policies aided by online systems and best-in-class facilitation. Inter-state comparison of industrial growth in pre-Covid times shows it was among the fastest growing sector among major states. The sector grew at an average of 7.49% during 2012-13 and 2019-20. Only Haryana, Gujarat and Bihar reported higher growth in industrial sector than Odisha, said the survey report. While Odisha is a mineral rich state and has significant contribution to major mineral production at the national level, the report said diversification of industries remains the cornerstone for the new industrial policy. Food processing, chemicals, textiles are some of the sectors in which Odisha is attracting investment. These sectors not just bring more employment per unit of capital investment but also generate more value addition.
Source: Times of India
In the past three months, the stock has outperformed the market by surging 39 per cent after the company reported robust earnings for December quarter (Q3FY22). Shares of Raymond hit a 52-week high of Rs 840.95, on rallying 12 per cent on the BSE in Wednesday’s intra-day trade on the back of heavy volumes. The stock of the textiles company surpassed its previous high of Rs 818.25 touched on January 27, 2022. Some of the leading brands within its portfolio are – ‘Raymond Ready to Wear’, ‘Park Avenue’, ‘ColorPlus’, ‘Parx’, ‘Raymond Made to Measure’ and Ethnix by Raymond, among others. In the past three months, the stock has outperformed the market by surging 39 per cent after the company reported robust earnings with a consolidated net profit of Rs 100 crore for the December quarter (Q3FY22). It had posted a profit of Rs 22 crore in the year ago quarter (Q3FY21). In comparison, the S&P BSE Sensex was up 4 per cent during the same period. The company’s net revenue during the quarter rose 45 per cent year-on-year (YoY) to Rs 1,871 crore from Rs 1,286 crore in Q3FY22. Earnings before interest, taxes, depreciation, and amortization (ebitda) margins improved 400 bps points at 16.2 per cent from 12.2 per cent in the previous year quarter. In domestic markets, improved consumer sentiments and strong festive & wedding season demand across our B2C businesses and strong momentum of export orders maintained in garmenting and engineering businesses helped in achieving growth in revenues during the quarter. While, the continued focus on cost optimization enabled reduction in overall operating cost in Q3FY22. The management said the company generated free cash flows to reduce debt and are progressing towards being a net debt free business.
Source: Business Standard
The predominantly cotton based textile industry is facing a long-drawn recession as the cotton price has skyrocketed 102% from Rs 44,500/ per candy in February 2021 to Rs 90,000 per candy now. In the wake of surging prices, industry players have demanded that import duty on cotton be either abolished or else, the government must at least permit duty-free inputs upto 40 lakh bales. The steep increase in cotton price and its impact on prices of yarns and fabrics is severely impacting the potential growth of the cotton textile value chain, according to Confederation of Indian Textile Industry (CITI). “It is feared that the industry might face a cotton shortage during August to October resulting in industrial unrest. Though the cotton prices occasionally move in tandem with international prices, quality cotton is not sold and mills started facing shortage. Therefore, the industry has been demanding to withdraw the 11% import duty to have a level playing field, sustain the export performance and compete with the cheaper imports from countries like Bangladesh,” according to a statement issued by CITI.
Source: Times of India
Information from the Statistics and Census Service (DSEC) indicated that total merchandise export amounted to MOP1.01 billion in February 2022, up by 39.2% yearon-year. Value of re-exports (MOP870 million) grew by 36.8%, with that of Travel goods & handbags and Garments surging by 305.0% and 197.3% respectively. Value of domestic exports (MOP142 million) expanded by 55.9%, with that of Garments and Copper & articles thereof rising by 31.6% and 40.2% respectively. Meanwhile, total merchandise import went up by 38.7% year-on-year to MOP10.56 billion; imports of Beauty, cosmetic & skincare products, Perfumes and Electronic components leapt by 202.7%, 192.7% and 186.6% respectively, whereas imports of Pharmaceutical products and Motor cars & motorcycles declined by 28.2% and 24.2% respectively. Merchandise trade deficit in February 2022 totalled MOP9.54 billion. From January to February this year, total value of merchandise export increased by 13.4% year-on-year to MOP2.45 billion, of which value of re-exports (MOP2.10 billion) and domestic exports (MOP341 million) went up by 10.9% and 31.4% respectively. Total value of merchandise import expanded by 35.7% year-on-year to MOP24.61 billion. Merchandise trade deficit totalled MOP22.17 billion for the first two months of 2022, up by MOP6.19 billion from MOP15.98 billion a year earlier. Analysed by destination, merchandise export to Hong Kong (MOP1.94 billion), the USA (MOP89 million) and the EU (MOP45 million) from January to February 2022 rose by 17.9%, 22.5% and 30.5% respectively year-on-year. Exports to mainland China dropped by 26.5% year-on-year to MOP175 million, of which exports to the Nine Provinces of the Pan Pearl River Delta (MOP148 million) decreased by 30.6%. Exports to the Belt and Road Countries (MOP58 million) declined by 11.5%, while exports to the Portuguesespeaking Countries (MOP236 thousand) grew by 45.6%. Exports of Textiles & garments rose by 52.7% year-on-year to MOP249 million, while exports of Non-textiles went up by 10.2% to MOP2.20 billion. By place of origin, merchandise import from the EU (MOP9.33 billion) and mainland China (MOP7.01 billion) in the first two months of 2022 rose by 59.3% and 8.2% respectively year-on-year. Imports from the Belt and Road Countries (MOP4.63 billion) and the Portuguese-speaking Countries (MOP132 million) increased by 29.0% and 25.0% respectively. Analysed by place of consignment, merchandise import from Hong Kong (MOP21.65 billion) expanded by 46.1% year-on-year. On the other hand, imports from mainland China dropped by 16.1% to MOP2.18 billion, with imports from the Nine Provinces of the Pan Pearl River Delta (MOP2.14 billion) falling by 15.5%. Imports of Consumer goods grew by 42.2% to MOP18.49 billion, of which imports of Beauty, cosmetic & skincare products (MOP3.75 billion), Food & beverages (MOP2.68 billion) and Gold jewellery (MOP2.18 billion) surged by 160.7%, 24.5% and 76.4% respectively. Besides, imports of Mobile phones (MOP2.69 billion), Fuels & lubricants (MOP876 million) and Construction materials (MOP334 million) registered respective growth of 26.1%, 15.8% and 5.4%. External merchandise trade totalled MOP27.06 billion from January to February 2022, up by 33.3% compared with MOP20.29 billion a year earlier.
Source: EIN News
The European Union warned consumers to stop using their clothes like disposable facialtissues and said on Wednesday that it planned to counter the polluting use of trendy fast fashion. New rules proposed by the EU's executive arm call for a mandatory minimum use of recycled fibres by 2030 and would ban the destruction of many unsold products. The European Commission rules also seek to contain the release of micro-plastics and improve global labour conditions in the garment industry. "We want sustainable products to become the norm," commission Vice President Frans Timmermans said. "All textiles should be long lasting, recyclable, made of recycled fibres and free of dangerous substances. The strategy also aims to boost reuse and repair sectors and address textile waste," Timmermans said. Almost three-quarters of all clothing and textiles used in EU are imported. In 2019, the 27-nation bloc imported over 80 billion euros (USD89.2 billion) in clothes, mainly from China, Bangladesh and Turkey, according to the European Commission, and the average consumer throws away 11 kilos (over 24 pounds) of textiles a year. Although targeting clothing made for mass consumption, the EU also wants luxury brands to set the standard for sustainable fashion in an industry where the fleeting and ephemeral is essential to turnover. "There's a cultural change taking place," Timmermans said, adding that major fashion houses "are always the first to show the way forward". "The designers, the artists - they realise that the world has changed and that we need to revisit the way we design fashion," he said.
Source: Economic Times
China's logistics sector reported steady growth in the January-February this year, according to a report by the China Federation of Logistics and Purchasing. Social logistics rose by 7.2 per cent year on year (YoY) during the duration to 51.8 trillion yuan ($8.13 trillion), outperforming the pre-pandemic level in 2019, while logistics for industrial products went up 7.5 per cent. Logistics of high-tech manufacturing and equipment manufacturing climbed by 14.4 per cent and by 9.6 per cent respectively during the two-month period, according to a Chinese state-controlled news outlet. The total revenue of the logistics industry rose by 9.7 per cent YoY to 1.6 trillion yuan during the period.
Source: Fibre2 Fashion
Vietnam recorded a year-on-year (YoY) gross domestic product (GDP) growth of 5.03 per cent in the first quarter (Q1) of 2022, according to the country’s General Statistics Office. The sector of agriculture, forestry and fishery grew by 2.45 per cent over the same period last year, while industry & construction and services sectors grew by 6.38 per cent and 4.58 per cent respectively. The country posted a modest GDP growth of 2.58 per cent in 2021 amid the impact of the COVID-19 pandemic. The government had earlier set a growth target of 6-6.5 per cent, according to Vietnamese media reports. In a report released in January this year, the World Bank forecast that Vietnam's economy would expand by 5.5 per cent in 2022 given that the pandemic would be brought under control at home and abroad. Meanwhile, Fitch Ratings affirmed Vietnam's long-term foreign-currency issuer default rating (IDR) at 'BB' with a positive outlook. The affirmation reflects continued strong medium-term growth prospects, despite the pandemic and the global economic spillovers from the war in Ukraine, and strong external finance metrics relative to peers, Fitch said in a release. The rating remains constrained by contingent liability risks associated with the large state-owned enterprise sector and structural weaknesses in the banking sector.
Source: Fibre2 Fashion
