Commerce and Industry Minister Piyush Goyal on Wednesday said that India has the potential to achieve $1 trillion services and merchandise exports each by 2030. He stressed the need to make exports the fulcrum of India's growth. Speaking of the challenges thrown by the COVID 19 pandemic, Goyal said that India was able to turn the crisis into an opportunity to realize the enormous potential that it had to engage with the world from a position of strength. The Minister said, "one of the biggest beneficiaries of our hard work during the pandemic was the services sector, which has grown by leaps and bounds." "We had a $250 billion export of services during the last year and this was achieved despite travel, tourism and hospitality being severely affected due to Covid-19," he added. He noted that India achieved $419 billion in FY 21-22, touched $30 billion of exports every month and in March, it touched $42 billion. The growth momentum has been maintained in the first 14 days of April with touching $18.5 billion. The Minister said, "Production Linked Incentive (PLI) schemes are making our industry competitive by bringing in economies of scale and will help us create global champions." Speaking of the recent decision to remove the import duty on cotton, the Minister clarified that that the decision was made to ensure the affordability of cotton particularly in a scenario where cotton prices stood at almost twice the Minimum Support Price, making textile exports uncompetitive. The lower import costs will boost manufacturing, create jobs, increase the disposable income of people, boost investment, demand and economic activity and create a virtuous cycle, he added. The minister said that the government also recently removed anti-dumping duty on several raw materials for the same reasons. Mentioning that our share in global goods trade was under 3% in 2021, the Minister said that there is immense scope for growth. For this to happen, the Centre and States have to work in tandem, he added and asked District collectors to promote exports in their districts. Observing that India had the 2nd largest US FDA approved Pharma manufacturing units, Goyal asked all pharma units, big and small to adopt good manufacturing practices (GMPs) and global quality standards in all processes. He said that India must strive to become a member of Pharmaceutical Inspection Co-operation Scheme (PICS) so that we may succeed in taking our pharma export to $200 billion by earning the trust of the world through certification.
Source: Business Standard
These programmes are planned to be conducted in cities, including Hyderabad, Chennai, Bengaluru, Mumbai, Surat, Ahmedabad, Delhi and Agra The commerce ministry will conduct a series of outreach programmes in various cities, including Hyderabad and Mumbai, to promote the recently signed free trade agreements with the UAE and Australia, an official said. "The main objective of these programmes is to inform Indian exporters about the export opportunities which these trade agreements will provide to them in both goods and services segments," the official said. These programmes are planned to be conducted in cities, including Hyderabad, Chennai, Bengaluru, Mumbai, Surat, Ahmedabad, Delhi and Agra. They would be organised in close coordination with the respective state governments. Officials from trade or industry ministries of the states concerned as well as those from industry associations and export promotion councils will participate in the programmes. The first in the series of programmes would be conducted in Hyderabad on Saturday. The free trade agreement between India and the UAE is likely to come into effect from May 1 this year, under which domestic exporters of as many as 6,090 goods from sectors like textiles, agriculture, dry fruits, gem and jewellery would get duty-free access to the UAE market. The Comprehensive Economic Partnership Agreement (CEPA) was signed by India and the United Arab Emirates (UAE) in February which aims to boost bilateral trade to USD 100 billion in the next five years from current USD 60 billion. On April 2, India and Australia signed an economic cooperation and trade agreement under which Canberra would provide duty-free access in its market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery. Both the pacts would help in promoting trade in services as well. Mumbai-based exporter and Chairman of Technocraft Industries Sharda Kumar Saraf said the India-UAE agreement is also likely to give a boost to bilateral investments from both sides. "Importers in UAE can now set up joint ventures in India to procure goods at competitive terms. Indian manufacturers can get the benefit of importing raw material in India duty free and finishing the final product using excellent infrastructure and cheap finance in UAE," he said. Saraf said that CEPA has come at the right time when the government of Dubai is in the process of establishing Bharat Bazar in their proposed Traders Market. This is a unique facility wherein Indian exporters will be given office and warehousing space for active and aggressive marketing in Middle East and African region. "These agreements (with the UAE and Australia) are likely to help in providing a quantum jump to Indian exports," he added.
Source: Business Standard
India is the third-largest textile exporter in the world after China and the European Union, but is a distant third with China exporting 10 times what India does. The production-linked incentive scheme, or PLI, for textiles, seeks to rectify some disadvantages that India suffers vis-à-vis countries upcoming countries like Vietnam and Bangladesh by way of costlier power and labour. India is the third-largest textile exporter in the world after China and the European Union, but is a distant third with China exporting 10 times what India does. However, in the more lucrative apparel exports, India is a distant sixth having been overtaken by Vietnam and Bangladesh. The production-linked incentive scheme, or PLI, for textiles, seeks to rectify some disadvantages that India suffers vis-à-vis countries upcoming countries like Vietnam and Bangladesh by way of costlier power and labour. Last week, the Indian government selected 61 companies from a list of 67 applicants who are eligible to get incentives, if they bring in one scheme, at least Rs 300 crore of investment and achieve Rs 600 crore of turnover by the first year of performance, which is FY25. To understand more about the government’s intention and its goals, CNBC-TV18’s Latha Venkatesh spoke to Upendra Prasad Singh, Secretary, Ministry of Textiles, and Arvind Singhal, Chairman of Technopak Advisors. Singh said, “If we want to make the dent in the international market in a much bigger way, then we have to be producing more manmade fibre and technical textile. In technical textile the penetration level in India is also low.” On textile exports Singhal said, “We need much bigger focus on the overall ecosystem to do with manmade textile. It is no secret that two-thirds of global consumption of clothing -- in whichever form — is out of manmade textiles. India unfortunately has a minuscule share of that particular market. Predominantly, we are focused on cotton, so to that extent, I think directionally there is nothing wrong with the PLI scheme itself.” Singhal believes few more steps are essential to make this scheme an unqualified success. He listed out important areas where the government should focus on. He said India should focus on attracting the biggest companies in the world.
Source : CNBCTV18
The issue was raised by FIEO Chairman A Sakthivel during a meeting, chaired by Commerce and Industry Minister Piyush Goyal, on April 20. The target for services and certain goods sector was discussed during that meeting The Federation of Indian Export Organisations (FIEO) has suggested the commerce ministry to set up a committee to evaluate the country's import trends and encourage domestic production of such products to reduce the widening trade deficit. The issue was raised by FIEO Chairman A Sakthivel during a meeting, chaired by Commerce and Industry Minister Piyush Goyal, on April 20. The target for services and certain goods sector was discussed during that meeting. "In view of increasing trade deficit and surge in imports, a committee may be formed to evaluate the trend in imports and encourage domestic production of such products to reduce the increasing deficits," Sakthivel said. He also recommended the ministry to come out with a revised Transport and Marketing Assistance (TMA) scheme for exporters. It ended last month. The withdrawal of the scheme has come as a setback for Agri exporters and a lot of them are small businesses, he said. "We, therefore, request that the revised TMA Scheme may be rolled in expeditiously and may cover exports from April 1, 2021, as many exporters have factored the freight benefits while finalising the contracts," he added. The Services Export Promotion Council (SEPC) too participated in the meeting where the export target for the sector was discussed. According to the council, services exports may touch USD USD 350 billion during the current fiscal. Abhay Sinha - Director-General, Service Export Promotion Council (SEPC) - said the target has been revised from USD 300 billion to USD 350 billion for 2022-23. Target is set in consideration to the sectors which couldn't perform in the last two years due to the pandemic and hopefully will bounce back in FY23 like Travel and Tourism, Hospitality, Education and Entertainment. Besides that, there are certain sectors that will be focused upon in FY23 are market research, consulting, engineering and construction," he said. In 2021-22, services exports touched USD 250 billion.
Source: Economic Times
Minister of State for Textiles & Railways Darshana Jardosh inaugurated the 2-day Fashion Meet- Expo ’22 in Gurugram on Thursday. Minister of State for Textiles & Railways Darshana Jardosh inaugurated the 2-day Fashion Meet- Expo ’22 in Gurugram on Thursday. The event aims to digitise the textile eco-system & fast-track the design development process to optimise Indian textile and achieve the Central government’s target of $100 billion in fashion exports by 2030. The Fashion Meet-Expo ’22 was hosted by the top fashion export council under AEPC ~ BAA ~ NAEC in collaboration with SOWTEX (B2B marketplace for the fashion & textile Industry). The first day witnessed a footfall of over 500 top fashion buyers, exporters & manufacturers besides the foreign delegates from Australia, Canada & Korea. Industry experts such as Narendra Goenka, chairman, AEPC, Sevraj Syed, director, TUKATECH, Europe; Puneet Dudeja, director- business, development, WGSN, Sonil Jain, co-founder & CEO, Sowtex Network shared their views and insights. Minister of State for Textiles Darshana Vikram Jardosh said, “The entire textile ecosystem of our country is under one roof today. The initiative was taken by our Prime Minister Narender Modi, to virtually connect with the heads of Indian ministers abroad, stakeholders of today’s commerce sectors for analysing trade and achieving export targets. Today’s apparel industry is taking a share of 4.4 percent of the total Indian exports. Today I am glad to announce India’s collaboration with Australia, Canada & Korea for textile exports”. On the occasion, Sonil Jain co-founder & CEO of SOWTEX Network said, “Industry experts such as International brands Liaison Officers, Buying Houses- Sourcing Consultants, Fashion Manufactures, Mills, Industry experts, Fashion Designers – Foreign Delegates are showing full enthusiasm by being a part and attending this remarkable event. We now look forward to Day-2 of The Fashion Meet- Expo.” Day-2 will feature talks & discussions on topics such as Fabric to Fashion – Digital Product Presentation & Simulation; Sustainable Production Processes & Implementation; Developing Sustainable Product Lines & Fastrack Development; how to Infuse Trends in Sustainable Fashion; along with Start-up fashion shows such as NIFT Foundation of Design Innovation – 5 start-ups exhibiting sustainable & organic clothing line, 4 International celebrity designers showcasing sustainable collections. The event is showcasing selected 50 fabrics, trims manufacturers & fashion technology companies from India with their product development capabilities along with USP’s based on trends, materials, and technology to fashion buyers & manufacturers looking for sourcing quality, sustainable & innovative materials for domestic & international markets.
Source: The Statesman
Vietnam and India recently agreed to raise the two-way trade turnover from $13.2 billion in 2021 (a year-on-year increase of 37 per cent) to $15 billion. The agreement was reached at a meeting between Vietnamese Prime Minister Pham Minh Chinh and speaker of the Indian Lok Sabha (lower house) Om Birla, who is on an official visit to Vietnam. Prime Minister Pham suggested India create the best possible conditions for Vietnamese exports, including electronics, garments and textiles, agricultural produce and fruits, to penetrate the Indian market. He asked the two sides to continue to maintain cooperation mechanisms, including the inter-governmental committee mechanism; and further promote collabration in defence, security, culture, tourism, education and training, digital transformation, energy transformation, response to climate change, and oil and gas cooperation. They also underscored the importance of full implementation of the Declaration on the Conduct of Parties in the East Sea (DOC) and conclusion of an effective and substantive Code of Conduct in the East Sea (COC) to ensure navigation and aviation freedom, security, and safety in the East Sea, according to Vietnamese media reports.
Source: Fibre 2 Fashion
Earlier this month, India and Australia signed a landmark bilateral trade pact called the Economic Cooperation and Trade Agreement (ECTA) on 2 April. This was India's second such trade agreement in 2022 after inking a similar deal with the United Arab Emirates in February. The ECTA is expected to increase trade between the two sides to $45-50 billion over five years, from the current estimate of $27 billion, and create over 10 lakh additional jobs. It is a win-win for both partners because it will ensure uninterrupted supply of key raw material to Indian industries, while Australia will get access to a more reliable alternative to China, which has been resorting to sanctions on Australian exports including coal, beef, seafood, wine and barley. Up until now, China has dominated the Australian market for leather goods, footwear, toys, pharmaceuticals, textiles, plastics. Now the India-Australia Economic Cooperation and Trade Agreement could make India a reliable alternative. Largely, India imports key raw materials from Australia and exports finished products. According to India’s commerce minister Piyush Goyal, India’s manufacturing sector, particularly micro, small and medium enterprises (MSMEs) are interested in the Australian market as the agreement unlocks huge opportunities for Indian exports of automobiles, textiles, footwears and leather products, gems and jewellery, toys and plastic products. Under this agreement, tariffs will be eliminated on more than 85 per cent of Australian goods exports to India (valued at more than $12.6 billion a year), including coal, sheep meat and wool. India is expected to get zero-duty access to Australia for its goods such as wines, almonds, lentils, and certain fruits over five years. Australian households and businesses will also benefit, with 96 per cent of Indian goods imports entering Australia duty-free on entry into force. The negotiations had begun over a decade ago in 2011, but were restarted in September 2021. In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. Australia's goal is to lift India into its top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment. "As India chases an ambitious export target of USD 450-500 by FY23, closing the Australia and UK FTAs would be crucial milestones to achieve by the end of this year. Given that India has already reached an interim agreement with Australia, closure with the UK should also be on the cards with the upcoming visit of Borris Johnson. UK and Australia join a growing list of countries negotiating trade deals with India which includes Russia, Canada, GCC and South Africa. With these initiatives, India is well poised to push the “preferred trade partner” agenda on the global platform which will be a major push for the domestic manufacturing sector in India," said Jayesh Kothari, Associate Partner, DSK Legal.
Benefits of AI ECTA include: Australia will provide ‘preferential access’ to “all the labour-intensive sectors” of export items from India such as gems and jewellery, textiles, leather, footwear, furniture, food, engineering products, medical devices and automobiles. The trade pact slashes duties on over 85 per cent of the goods exported to Australia, putting Indian exporters at par with their Chinese counterparts since Australia and China already have a free trade agreement. ECTA also slashes import duty on a host of raw materials used by Indian exporters. India can import Australian coal cheaper than earlier. Australian coal constitutes over about 70% of total imports from Australia to India and attracts a 2.5% duty. ECTA will allow zero duty import of Australian coal, which is a key raw material for the steel sector. Under the agreement, Indian graduates from STEM (Science, Technology, Engineering and Mathematics) will be granted extended post-study work visas from two to three years. Australia will also set up a programme to grant visas to young Indians looking to pursue working holidays in Australia. Places in Australia's Work and Holiday program will be set at 1,000 per year and Australia will have two years to implement the outcome. Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market. Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products. Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine). Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine). Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years. India has, however, excluded a number of Australian products from tariff reductions under the agreement to protect “sensitive sectors” including dairy products, wheat, rice, chickpeas, beef, sugar, apples, toys and iron ore Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand. The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium. LNG tariffs will be bound at 0 per cent at entry into force. Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years. The agreement also includes strict rules of origin to prevent any routing of products from other countries and provides for a safeguard mechanism to address any sudden surges in imports of a product. "The said agreement shall remove tariffs on trade like it generally happens under all FTAs. However, it shall benefit Australia’s Agro market as this FTA shall open some of its Agricultural goods market gradually. The FTA shall enhance ability towards travel and work for citizens," said Anushkaa Arora, Principal & Founder, ABA Law Office. India has over a billion people and Australia’s population is 26 million, the per capita income of Australia is approximately 57,000/- USD, while India’s is approximately 1900/- USD. per person. "Notwithstanding this divide; the India-Australia ECTA is a winwin opportunity for both economies, as it opens the benefits of scale and thus lower costing to the Australian consumer and the large market Indian of consumers for minerals, produce and wine. From the Indian perspective, the relaxing of visa requirements, opportunities for pharma, dual-degree programs are unprecedented. This FTA has the right ingredients for success and add to this mix-the geopolitical realities this FTA must succeed. Trade is moving to countries with like-minded values and neither India nor Australia can stay out of these groupings. This is truly an opportunity for India to enter the mainstream of global and take advantage of the ‘China+1’ supply chain opportunity," said Suhail Nathani, Managing Partner, Economic Laws Practice.
Source: Times of India
In order to make Uttar Pradesh a global textile hub and attract investors in the field of handloom and textiles, the state government is soon going to introduce a new Textiles and Garment Policy-2022 under which arrangements will be made to provide all kinds of attractive facilities to entrepreneurs along with capital investment subsidy up to 40 per cent. A meeting was held under the chairmanship of Additional Chief Secretary (Handloom and Textiles) Dr Navneet Sehgal at Lok Bhawan on Thursday to finalise the draft of the Textiles and Garment Policy-2022. Officers of the Finance and Environment department and officials of various industrial organisations were present in the meeting. The additional chief secretary said this policy had been prepared after studying the textile and garment policies of other states. He said preparations were being made to provide special facilities to the investors investing in UP and in the proposed policy, investors in Purvanchal and Bundelkhand would be given additional benefits. Sehgal said that provision was being made to give 100 per cent stamp duty and land cost subsidy in the new policy. In addition, grants would be given for infrastructure facilities, he said, adding that subsidies would also be given for employment generation. “Additional grant will be given for keeping women workers in industrial institutions,” he said. To increase exports from the state, exemption in export subsidy and electricity duty will be given. Besides, 100 percent reimbursement will be given to the developer who develops a private textile park. Sehgal said that entrepreneurs would have to start production within five years from the issuance of a letter of comfort. He said under the Textiles and Garmenting Policy-2017, 79 proposals for investment in handloom and textile sector were received, out of which 53 were for micro, small and medium enterprises (MSMEs) and 26 for large, mega and super mega industries. “With the new policy, a maximum number of investors will come to Uttar Pradesh and employment opportunities will be available to a large number of people. Along with this, Uttar Pradesh will also become self-sufficient in the textile industry sector,” Sehgal said.
Source: Daily Pioneer
Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, and Industry along with Invest India conducted the Investor’s Roundtable on 20th April 2022 with the objective to boost investor confidence and take cognizance of industry-level policy recommendations to enhance investor’s business experience in India. The meeting focussed on showcasing the opportunities in India and engaging with them to handhold their India entry /expansion plans. Shri Anurag Jain, Secretary, DPIIT emphasised the need for continuous dialogues between Industry and Government for a long-lasting business relationship. He reiterated that the post-pandemic recovery in India has been fast and there is growing confidence among both domestic and foreign investors in India. He remarked that India received the highest ever FDI in the last two years. He also mentioned important reforms such as a reduction in Basic Customs Duty from 10 to 7.5%, extension of time limits for the new companies to be eligible for new corporate tax up to March 2024, the PLI schemes in various sectors and the launch of PM Gati Shakti to improve logistics efficiency and reduce logistics cost. Further, the demographic dividend and skilled workforce availability were also highlighted. India's MSME sector with over 63 million units makes for a great opportunity for collaboration with investors in the global supply chain realignment. It was emphasized that reforms are a continuous process and assured that the government remains committed to strengthening the investor experience. Shri Anurag Jain requested the companies to Make in India - Make for the World as the country offers a favourable and competitive environment for investments. The event saw the participation of 21 companies from various key investors representing sectors including the electronics, footwear, and textiles sectors. The senior officials of the State Government of Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka were present and showcased the opportunities and support offered to the industry in the respective states. The Union government was represented by senior officials from CBIC, MEA, DoC, NICDC, APEDA, CBDT, BIS MeitY, and FDI, Leather & International Cooperation (Asia) divisions of DPIIT, to address the suggestions of the investors.
Source: PIB
India has always been known for its delicate fabrics, beautiful designs and traditional textiles. The Indian textile and apparel industry is flourishing and the industry’s growth rate has increased multi-fold in the past few years. In fact, it is one of the few industries that recovered faster and recorded remarkable growth even during the pandemic. Textile exports alone were worth US$ 1.19 billion as of December 2020. The tremendous growth potential of the industry may be the reason behind the Central government of India’s announcement of the ambitious goal of increasing its textile exports to USD 100 Billion in the next five years. “India has everything it needs to get to USD 100 Billion in textile exports. The need of the hour is that all the parties, be it the industry players, the government and the industry associations and affiliates will have to work together towards achieving this dream,” says Rimjhim Hada, Co-Founder & Creative Head of a clothing brand, “Yes, it will take a lot of work but with right initiatives and meaningful collaborations, the industry can totally achieve this number.” Here are some steps that the industry and the government can leverage in order to achieve this ambitious goal of increasing India’s textile exports to USD 100 Billion. Government’s role The Government needs to take some integrated steps keeping in view the industry growth as well as overall economic growth of the country. 1. Encourage Indigenous Textile Industries The art of making cloth and textiles is as old as time and to give the textile industry of the country a boost, it is important to promote traditional and indigenous textile companies. The Ministry of Textiles has approved a Rs 160 crore (US$ 21.39 million) extension of the handicrafts sector development project in October 2021. Such initiatives by the government encourage local businesses and local artisans and their proper implementation must be taken care of to obtain favourable outcomes. 2. Financial Support Through Tariff Concessions Import and export go hand in hand. Both these activities are a testament to the global connections of the country. The government imposes, and over time, increases taxes on imports in the hopes to promote domestic manufacturing and trade. However, raising duties and customs on imports works against the spirit of the free market and may lead to greater costs of production, limiting the industries’ ability to export profitably. So, the government must maintain equilibrium when it comes to taxes on imports and takes strategic measures to curtail the imports rather than increasing import duties. 3. Help Make Micro-Units Mid-Sized There are a lot of small-sized mills and companies that function within the country. They face a lot of problems in their pursuit of growth. The lack of capital and stringent taxation are some of the major barriers for small-sized organisations. It is very important for the government to introduce schemes and financial relief programmes for MSMEs to gather funds and grow. Such opportunities are paramount to encouraging growth in the domestic textile markets. 4. Incentivize Industrialists Driving investment is one sure way to increase capital and funds in the textile industry. It is up to the government to incentivise private organisations to invest in the industry. Moreover, the government should also take steps to increase Foreign Direct Investment in small and medium-sized firms and the overall technology development as it can trigger momentous growth for the textile and apparel industry. Apart from all of this, there is a multitude of things that private organisations can do to achieve the aspired goal. Role of industry players Apart from what the government does, there are some steps that private players in the industry must undertake to achieve the 100 billion mark. 1. Increase Fixed Term Employment The textile industry is a labour-intensive field. It is important to maintain a stable workforce. Moreover, industries should also work on gradually increasing the workforce to meet domestic demands and all the while increasing exports too. This can be done by hiring more skilled, full-time workers to maximize utility, production and increase exports. 2. Stay on Top of Trends Global markets are governed by trends in the fashion industry. That is applicable not just for the textile produces, but also for means of production and sustainability. The average global consumer has gotten ‘woke’. They demand sustainability and eco-friendly means of production. In fact, given the current environment, sustainability is the future of manufacturing and textile production. The organizations need to embed sustainability to thrive in the coming years while keeping up with the global fashion trends. 3. Active Participation in International Exhibitions, Conferences and other events There is a lot of scope for the growth of the textile industry in the global arena. But to actualize the real potential, private players must put in extra efforts to create an international presence that can be done via participating in global conferences, and exhibitions. They must scout for and get involved in the Government industry exchange programs or trade fairs should as it can open newer and wider markets, boosting revenue growth. 4. Play to your Strengths Indian textile is popular in the international community for its vibrant colours, traditional designs, durability, regional handloom techniques and versatility. It is important to leverage these inherent advantages to our favour and promote the uniqueness of indigenous textiles across the world as much as possible. This will allow the private players as well as the industry to monetize their strengths, ultimately leading to the substantial increase in exports Summing it up Taking active steps and utilizing manufacturing best practices can help the industry gain more traction and push it forward. Both the government and private parties will have to cooperate to increase the textile exports to greater heights. Being one of the largest textile and apparel industries in the world, India has everything it takes to be a global leader in the industry. If all the stakeholders come together and work towards the common goal of reaching 100 billion, the industry can actually surpass the 100 billion mark and set new milestones for the world. What do you think? Authored by Anurag Singh Khangarot, Co-founder, Aachho.
Source: APN News
With the vision to promote sustainable trade and create market linkages, a mega buyerseller meet was organized on 21st April, 2022 at Jammu and Kashmir under One District One Product initiative of Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry with the support of Jammu & Kashmir Trade Promotion Organization (JKTPO). The Buyer Seller Meet witnessed the presence of multiple national and International Brands with the cumulative revenue of over Rs 8,000 Crores and having their products available in over a million retail outlets across the world. Sellers, Traders, Farmers, Aggregators from various districts of Jammu & Kashmir showcased their products that are unique to the valley including the world-famous Kashmiri saffron, Himalayan White Acacia Honey, Red shiny Kidney beans, freshly grown organic vegetables and more. The Buyer Seller Meet provided a platform where different Government departments and institutions came together to boost the trade of selected products. Jammu & Kashmir agriculture and industries department worked together to bring quality products as per market requirement and it was imperative to connect this best-in-class products with renowned brands to improve earning potential of farmers. Collective discussion between all the stakeholders generated innovative ideas on diversification of products such as saffron based dairy products, Walnut based bakery products and more. Focused trade discussions were facilitated between the buyers and sellers which resulted in signing of Letters of Intent for 4 products amounting to INR 1.2 crores. The above is a direct outcome of the vision of ‘Aatmanirbhar Bharat’ (Self Reliant India). DPIIT, under its initiative of One District One Product is working to ensure such linkages with a string focus on increasing farmers income. With over 700 products cutting across sectors like agriculture, textiles, handicrafts and manufacturing, the ODOP Initiative seeks to select, brand and promote one product from every district of the country. This is marked by a key role – to coordinate, create collaborative networks and enable handholding of buyers and sellers for the larger aim of trade promotion and facilitation. The keynote address for the event was made by Shri. Som Parkash, Minister of State, Ministry and Commerce and Industry with the presence of various dignitaries such as Smt. Sumita Dawra, Additional Secretary, DPIIT; Shri. Navin Kumar Choudhary, Principal Secretary, Department of Agriculture Production and Farmers’ Welfare along with other subject matter experts from the Agricultural and Horticultural Departments of the Govt. of J&K. Alongside the Buyer-Seller Meet, an e-commerce onboarding session was also held by one of the leading e-commerce players in the country in order to support J&K based sellers to expand trade into web-based sales. Previously, the ODOP Initiative had facilitated the sale of 6750 kilograms of apples and 2000 kgs of walnuts from Budgam, Kashmir to Karnataka based buyers that were previously importing the same. Through the recognition of unique selling propositions (USP) of various products and keen handholding, the ODOP Initiative seeks to replicate such efforts at a larger scale through its latest mega buyerseller meet.
Source: PIB
This will boost its handmade in India programme and provide a global platform for artisans and sellers of handcrafted products, said a statement by Reliance Retail on Thursday said it will launch a dedicated artisan-only store format 'Swadesh', which will showcase agriculture & food products, handlooms, clothing, textiles, handicraft and handmade natural products. This will boost its handmade in India programme and provide a global platform for artisans and sellers of handcrafted products, said a statement by Reliance Retail. The first Swadesh store is expected to open in the second half of 2022, it said. "The programme is being spearheaded by Reliance Retail's handicraft brand Swadesh, which envisages an artisan-only dedicated store format for handcrafted products from across the country," it said. Besides, Reliance Retail, a subsidiary of Reliance Retail Ventures Limited (RRVL) is exploring new partnerships with state governments to create a strong, vigorous and sustainable ecosystem for local artisans, the statement added. As part of that, an MoU was signed on Thursday at the Bengal Global Business Summit in Kolkata with the state government. The Swadesh store will house a wide range of products including handmade textiles, handicraft, agriculture products and other artisanal merchandise, which will be sourced directly from artisans. "Swadesh will also build a global marketplace to connect Indian artisans and sellers of authentic handmade products to consumers across the world," it said. Commenting on the development, RRVL Director Isha Ambani said the future of Indian arts and crafts is poised for an exciting stage. "We see a great opportunity for the artisans of our country in co-creating and co-curating handcrafted Indian products for the world. To realise this opportunity, Reliance Retail is partnering with various government organizations to help popularise various local art forms, both nationally and globally," she said. Swadesh will showcase everything from apparel, home textiles, home decor, furniture, jewellery, wellness products and more, Ambani added. Reliance Retail will also explore new partnerships with state governments and create a sustainable ecosystem for local artisans. It has already signed an MoU with Ministry of Textiles which enables the sourcing of authentic crafted products, directly from artisan communities. "Another unique partnership has been finalized and an MoU has been signed with Department of MSME & Textiles, Government of West Bengal. The aim of this partnership is to build a healthy, dynamic ecosystem that will help both Government of West Bengal and Swadesh realise the vision of sustainable employment and an enriched standard of living for the artisan community," it added. RRVL is the holding company of all the retail companies under the RIL Group. It had reported a consolidated turnover of Rs 1,57,629 crore for the year ended March 31, 2021.
Source: Business Standard
The Department of Trade and Industry and several stakeholders again called for the ratification of the Regional Economic Cooperation Partnership (RCEP) saying the free trade deal will help the Philippine economy. RCEP includes Australia, China, Japan, South Korea, New Zealand, and the 10-member ASEAN. It seeks to eliminate up to 90 percent of tariffs between signatories within 10 years of taking effect. The Philippines has yet to ratify its participation in RCEP after Filipino lawmakers deferred their decision on the matter. With elections coming up in May, a new set of lawmakers will have to be briefed on RCEP. Trade Assistant Secretary Allan Gepty said the Philippines needs to take part in the RCEP to boost trade and investment. “The RCEP region represents 50 percent of the global manufacturing output, 50 percent of global automotive output, 70 percent of electronic products, 26 percent of GVC (global value chain) trade volume, 35 percent contribution to global export of electronics and machineries, 60 percent of GVC for electrical, machinery, petroleum, chemicals, textile, apparel, metal and transport equipment, and most interestingly, the main GVC hubs of Japan, China, and Korea,” Gepty said. In terms of foreign direct investments, more than 60 percent of the Philippines’ FDIs come from RCEP countries, Gepty added. He noted that the Philippines has moved up in ranking in Southeast Asia as a destination for FDIs and that membership in RCEP will sustain this. “And again that tells us that we cannot afford not to be part of this RCEP region, because the bulk of our FDIs are coming from these trading partners." https://news.abs-cbn.com/business/02/09/22/bpo-industry-to-benefit-from-rcepsays-adb Henry Lim Bon Liong, President of the Federation of Filipino Chinese Chambers of Commerce and Industry Inc, said the ratification of RCEP would help the the country hit its 7.5 percent growth target this year. . “This is what businessmen are longing for," Liong said. Theresa Chong Cariño, Senior Research Consultant at the Amity Foundation tackled the claim that RCEP would only benefit China. She said that in 2020 Chinese imports from RCEP members reached $778 billion exceeding the country's exports to them of $700 billion. “So, I mean the complaint before has always been a trade imbalance. I think that is beginning to change,” Cariño said. She added that nearly a fourth of China’s total imports during 2020 came from RCEP members, and in the first 11 months of 2021, China’s trade with RCEP members represented 31 percent of its total foreign trade value in the same period. “So that is how important ASEAN has become for China," Cariño said. Several groups however have opposed the ratification of the RCEP saying the free trade deal will have a negative impact on the Philippine economy, especially the agricultural sector. Some groups are concerned that RCEP will have a negative impact on the Philippine economy, especially the agricultural sector. Former Agriculture Secretary Leonardo Montemayor has said that RCEP will allow more agricultural products from other countries to easily enter the country and compete with local products as tariffs are removed. In 2019, India opted not to join RCEP fearing its domestic producers could be hard hit if the country was flooded with cheap Chinese goods. India, Asia’s third-largest economy, flagged textiles, dairy, and agriculture as vulnerable industries. Cariño meanwhile said that RCEP will members would be enjoined to maintain peace within the region to ensure the success of the free trade pact. “What’s important is that with RCEP, ASEAN as a whole will uphold rules-based architecture and work for cooperation, peace, stability, and prosperity. You know no matter what kind of FTAs will be implemented, the environment of peace and stability is essential to their success," Cariño said. China, which is the main backer of RCEP, has territorial disputes with Japan and several members of ASEAN including the Philippines.
Source: ABS-CBN News
Cambodia-S Korea bilateral trade urged by 22.8 per cent to $234.4 million in the first quarter (Q1) of this year, according to figures from the general department of customs and excise in Cambodia, which exported $61.3 million worth of goods to South Korea in the duration—a 22.2 per cent increase compared to the same period last year. Cambodia imported $173 million worth of goods from South Korea—a 23.1 per cent rise, a Cambodian newspaper reported. The two countries are expected to see an increase in bilateral trade volume once the Cambodia-Korea Free Trade Agreement is put into force, Cambodian ministry of commerce spokesman Penn Sovicheat said recently. Cambodia has already ratified the FTA and South Korea is in the process of ratifying it. South Korea is Cambodia’s main market for agricultural products, clothes and footwear, Sovicheat said. South Korea’s major exports to Cambodia include cars, machinery, textiles and agricultural and marine products. South Korea had pledged to expand economic and trade cooperation with Cambodia after signing the agreement last year, said South Korean President Moon Jae-in in a meeting with Cambodian Prime Minister Hun Sen in Seoul in February. According to the Korean International Trade Association, bilateral trade between Cambodia and Korea topped $965 million in 2021, a year-on-year increase of 9 per cent.
Source: Fibre 2 Fashion
Troubles have come to the eurozone economy not as single spies but in battalions. First, it was the COVID pandemic, which hit major eurozone economies like those of Italy and Spain particularly hard. Then it was a surge in eurozone inflation to record levels, which will soon force the European Central Bank to slam on the monetary-policy brakes and thereby heighten the risk of a European economic recession. Now it is Russia’s Ukrainian invasion, which has sent energy prices through the roof, severely sapping countries like Germany and Italy that are overly dependent on Russian natural-gas imports. All this could have serious consequences for the global economy. Not simply because a slowdown in the eurozone economy could mean less favorable export markets for the rest of the world. The need to slam on the brakes and raise rates at a time when some eurozone countries have very weak public finances could precipitate another round of sovereign-debt crisis. That in turn could raise questions anew about whether the euro can survive in its present form. As we learned during its 2010 debt crisis, the eurozone is not well-placed to handle economic shocks that hit some member countries harder than others. That is because in 1999 all eurozone members gave up their individual currencies for the euro. As a result, they no longer have their own independent monetary or exchange-rate policies to use as a cushion to promote exports and thereby soften the blow of their economic shocks. Lacking its own currency to deal with such shocks is especially problematic for countries in the eurozone’s periphery like Italy, which has a large budget deficit and the highest public-debt-to-GDP ratio in that country’s 150-year history. If Italy is to avoid another debt crisis, there is no question it has to place its public finances on a sounder footing. Italy, however, might once again learn that budget belt-tightening in a euro straitjacket is counterproductive. No longer able to devalue its currency to promote exports as an offset to the economic effect of reduced budget spending, Italy could find itself in another deep economic recession that would curtail its tax-revenue-collection ability. Over the past two years, the ECB’s bond-buying programs have kept countries in the eurozone’s periphery, including most notably Italy, afloat. In particular, under its €1.85 trillion ($2 trillion) pandemic emergency purchase program, the ECB has bought most of these countries’ government-debt issuance. That has saved them from having to face the test of the markets. With eurozone inflation having picked up to 7.5% — an all-time high — it must be only a matter of time before the ECB is forced to slam on the monetary-policy brakes. The eurozone’s troubled economic periphery should know such tightening would include a stop to the ECB’s bond-buying programs. The bank has already ended its pandemic emergency purchase program and is intimating it will end its other purchasing programs this fall. The end to ECB bond-buying would seem to be setting the stage for another round of eurozone debt crisis, especially should the eurozone succumb to another economic recession. This must be of deep concern to the rest of the world economy. In 2010, the Greek sovereign-debt crisis shook global stock markets and sparked fears of financial-market contagion that might have derailed America’s fragile economic recovery. How much more shock would another round of the eurozone crisis cause today if it were centered on Italy, which has an economy some 10 times the size of that of Greece? The last thing the world economy needs is another round of the eurozone debt crisis. This is especially the case at a time the Federal Reserve’s efforts to rein in inflation could precipitate a US economic recession and China’s zero-tolerance COVID policy could lead to a marked slowdown in the world’s second-largest economy. Yet we might well have to brace ourselves for such a crisis as the ECB is forced to curtail its bond-buying activities to deal with its own inflation problem.
Source: New York Post
Cotton consumption in Bangladesh in marketing year (MY) 2022-23 will increase by 5.6 per cent year-on-year to 9.31 million bales. This can be expected for a rise in demand for yarn and fabrics for corresponding placements of work orders from international clothing retailers and brands, according to United States Department of Agriculture (USDA). The marketing year in cotton sales starts from August and ends in July. Bangladesh has been receiving more work orders since the beginning of 2021 as many brands are shifting their orders from some of the competitor countries such as Vietnam and Indonesia, said the USDA. Contacts also stated that Bangladesh is expecting more work orders in the coming months due to recent Covid-19 lockdowns in China, said the USDA. The USDA data also put domestic raw cotton consumption in the MY 2021-22 at 9 million bales, which is 2.27 per cent higher than initial USDA official estimates. The USDA data forecasts that in the MY 2022-23 yarn and fabric consumption would reach 0.96 million tonnes and 6.4 billion metres respectively. For the MY 2021-22, the data estimates yarn and fabric consumption to be 0.95 million tonnes and 6.3 billion metres respectively. It forecasts that in the MY 2022-23 cotton imports would reach 8.9 million bales, up 7.2 per cent from the MY 2021-22 USDA official estimate, assuming increasing yarn and fabric demand by the garment industry. The USDA estimates the MY 2021-22 cotton imports to be of 8.7 million bales, up 4.8 per cent over initial USDA official estimates. According to the National Board of Revenue data, Bangladesh has imported approximately 5 million bales of cotton in the first seven months of the MY 2021-22. "We also believe that both the import and consumption of cotton will grow by nearly one million bales in the MY 2022-23," said Monsoor Ahmed, chief executive officer of Bangladesh Textile Mills Association, the platform for the primary textile millers. This is because the local spinners have already increased their spindle capacity while new investment in the primary textile sector came in even in the time of the Covid-19, Ahmed told The Daily Star over the phone. Of the import destinations, India accounts for the largest market share. In 2021, by quantity, Indian cotton made up 29 per cent of the imports, followed by Brazil (15 per cent), Benin (13 per cent), and the United States (9 per cent). The volume of US cotton exports to Bangladesh in 2021 was approximately 816,000 bales, 58 per cent lower than that in 2020. Indian cotton is exported via Kolkata seaport and Benapole land port, with traders noting that transportation and logistics are cheaper as compared to other origins, with shorter shipment times due to geographic proximity. The USDA forecasts that stocks at the end of the MY 2022-23 would be at 2.25 million bales, approximately 11 per cent lower than the MY 2021-22 USDA official estimate. Due to global cotton supply chain issues and increased prices, local spinners will reduce their stock. The USDA's post said in the MY 2021-22 the remaining stock of cotton was estimated to be 2.51 million bales, similar to the USDA official estimate. New orders for the Russian market contacts note that garment exporters in Bangladesh are uncertain about receiving payments from Russian buyers as Russian banks have been cut off from SWIFT. They are also worried about shipments of existing orders to Russia, as shipping lines are suspending container bookings to the country. According to the local news, the Bangladesh Garment Manufacturers and Exporters Association has asked exporters not to accept any new orders for the Russian market. The textiles industry in Bangladesh is composed of yarn, fabric and dyeing-printingfinishing mills. According to Bangladesh Textile Mills Association (BTMA), in calendar year (CY) 2021, the number of spinning mills reached 510 with an annual spindle capacity of 15 million bales, up 18 per cent and 7.1 per cent respectively from that the previous year. However, Bangladesh is currently only consuming approximately 8.5 million bales of raw cotton annually. Bangladesh's yarn production recovered in 2021 following an extended period of market disruption due to Covid-19 induced lockdowns and restrictions in 2020. The USDA post forecasts the MY 2022-23 yarn production at 760,000 tonnes, up 1.3 per cent compared to that in the MY 2021-22. For the MY 2022-23, the USDA forecasts cotton harvest area at 46,000 hectares, up 2.2 per cent over the MY 2021-2022 USDA official estimate. The post's forecast for MY 2022-23 cotton production is 155,000 bales, up 2.6 per cent over the MY 2021-22 USDA official estimate, assuming favorable weather conditions and continuous government support. Domestically produced cotton accounts for less than 2 per cent of total cotton consumption. Total cotton cultivation in Bangladesh covers only 0.55 per cent of the country's 8.1 million hectares of arable land. Bandarban, Jhenaidah, Jashore, and Rangamati are the major cotton producing areas of the country.
Source: The Daily Star
This Earth Day, Canopy has announced that eight new fashion companies have joined the CanopyStyle initiative to keep ancient and endangered forests out of the viscose supply chain and help conserve the world’s most vital forests, biodiversity, and climate. The brands include Shein, Hanky Panky, ocean+main, River Island, AllSaints, Kmart Australia and Boody. These companies are uniting with the 478 brands already signed on to CanopyStyle to save forests. CanopyStyle is a collaborative initiative dedicated to transforming viscose supply chains away from sourcing from forests and accelerating the production of low-carbon, next generation solutions like recycled-textile or agricultural residue derived viscose, the organisation said in a media release. “This is the turnaround decade for our planet, and forests have a huge part to play in mitigating the climate crisis and conserving biodiversity,” said Nicole Rycroft, Canopy’s executive director. “That’s why, on Earth Day, we are so encouraged to see this new wave of global fashion brands committing to revolutionize their supply chains to keep vital forests standing and scale the production of Next Gen alternatives.” “At Hanky Panky, we have always had high standards for social responsibility and sustainability,” said Gale Epstein, president and creative director of Hanky Panky. “So we are pleased today to be adding to this legacy by joining CanopyStyle and Pack4Good, and collaborating to ensure forests stay out of our supply chains, and are conserved for generations to come.” “At Shein, we understand that protecting our forests is essential to creating a better planet for future generations," said Adam Whinston, global head of ESG at Shein. "Canopy has made important advancements in addressing the social and environmental concerns associated with man-made cellulosic fibres, and we are excited to join peer companies in the commitment to responsible viscose.” More than 200 million trees are logged every year to make cellulosic fabrics such as viscose and rayon — many from the world’s most vital forest ecosystems. If placed end-to-end those trees would circle the Earth seven times. Currently, forests in Indonesia, Canada’s Boreal, Australia, and Brazil are being logged for next season’s fashion and apparel. The brands have committed to ensure their viscose supply chain is free of ancient and endangered forests; maximises alternative next generation fibres such as recycled textiles and agricultural residues; and uses FSC-certified wood if virgin forest fibre needs to be used. A majority of these brands have also joined Pack4Good, Canopy’s initiative to make sure they are implementing smart packaging design and using the most eco-friendly paper packaging.
Source: Fibre 2 Fashion
INTERNATIONAL
Commerce and Industry Minister Piyush Goyal on Wednesday said that India has the potential to achieve $1 trillion services and merchandise exports each by 2030. He stressed the need to make exports the fulcrum of India's growth. Speaking of the challenges thrown by the COVID 19 pandemic, Goyal said that India was able to turn the crisis into an opportunity to realize the enormous potential that it had to engage with the world from a position of strength. The Minister said, "one of the biggest beneficiaries of our hard work during the pandemic was the services sector, which has grown by leaps and bounds." "We had a $250 billion export of services during the last year and this was achieved despite travel, tourism and hospitality being severely affected due to Covid-19," he added. He noted that India achieved $419 billion in FY 21-22, touched $30 billion of exports every month and in March, it touched $42 billion. The growth momentum has been maintained in the first 14 days of April with touching $18.5 billion. The Minister said, "Production Linked Incentive (PLI) schemes are making our industry competitive by bringing in economies of scale and will help us create global champions." Speaking of the recent decision to remove the import duty on cotton, the Minister clarified that that the decision was made to ensure the affordability of cotton particularly in a scenario where cotton prices stood at almost twice the Minimum Support Price, making textile exports uncompetitive. The lower import costs will boost manufacturing, create jobs, increase the disposable income of people, boost investment, demand and economic activity and create a virtuous cycle, he added. The minister said that the government also recently removed anti-dumping duty on several raw materials for the same reasons. Mentioning that our share in global goods trade was under 3% in 2021, the Minister said that there is immense scope for growth. For this to happen, the Centre and States have to work in tandem, he added and asked District collectors to promote exports in their districts. Observing that India had the 2nd largest US FDA approved Pharma manufacturing units, Goyal asked all pharma units, big and small to adopt good manufacturing practices (GMPs) and global quality standards in all processes. He said that India must strive to become a member of Pharmaceutical Inspection Co-operation Scheme (PICS) so that we may succeed in taking our pharma export to $200 billion by earning the trust of the world through certification.
Source: Business Standard
These programmes are planned to be conducted in cities, including Hyderabad, Chennai, Bengaluru, Mumbai, Surat, Ahmedabad, Delhi and Agra The commerce ministry will conduct a series of outreach programmes in various cities, including Hyderabad and Mumbai, to promote the recently signed free trade agreements with the UAE and Australia, an official said. "The main objective of these programmes is to inform Indian exporters about the export opportunities which these trade agreements will provide to them in both goods and services segments," the official said. These programmes are planned to be conducted in cities, including Hyderabad, Chennai, Bengaluru, Mumbai, Surat, Ahmedabad, Delhi and Agra. They would be organised in close coordination with the respective state governments. Officials from trade or industry ministries of the states concerned as well as those from industry associations and export promotion councils will participate in the programmes. The first in the series of programmes would be conducted in Hyderabad on Saturday. The free trade agreement between India and the UAE is likely to come into effect from May 1 this year, under which domestic exporters of as many as 6,090 goods from sectors like textiles, agriculture, dry fruits, gem and jewellery would get duty-free access to the UAE market. The Comprehensive Economic Partnership Agreement (CEPA) was signed by India and the United Arab Emirates (UAE) in February which aims to boost bilateral trade to USD 100 billion in the next five years from current USD 60 billion. On April 2, India and Australia signed an economic cooperation and trade agreement under which Canberra would provide duty-free access in its market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery. Both the pacts would help in promoting trade in services as well. Mumbai-based exporter and Chairman of Technocraft Industries Sharda Kumar Saraf said the India-UAE agreement is also likely to give a boost to bilateral investments from both sides. "Importers in UAE can now set up joint ventures in India to procure goods at competitive terms. Indian manufacturers can get the benefit of importing raw material in India duty free and finishing the final product using excellent infrastructure and cheap finance in UAE," he said. Saraf said that CEPA has come at the right time when the government of Dubai is in the process of establishing Bharat Bazar in their proposed Traders Market. This is a unique facility wherein Indian exporters will be given office and warehousing space for active and aggressive marketing in Middle East and African region. "These agreements (with the UAE and Australia) are likely to help in providing a quantum jump to Indian exports," he added.
Source: Business Standard
India is the third-largest textile exporter in the world after China and the European Union, but is a distant third with China exporting 10 times what India does. The production-linked incentive scheme, or PLI, for textiles, seeks to rectify some disadvantages that India suffers vis-à-vis countries upcoming countries like Vietnam and Bangladesh by way of costlier power and labour. India is the third-largest textile exporter in the world after China and the European Union, but is a distant third with China exporting 10 times what India does. However, in the more lucrative apparel exports, India is a distant sixth having been overtaken by Vietnam and Bangladesh. The production-linked incentive scheme, or PLI, for textiles, seeks to rectify some disadvantages that India suffers vis-à-vis countries upcoming countries like Vietnam and Bangladesh by way of costlier power and labour. Last week, the Indian government selected 61 companies from a list of 67 applicants who are eligible to get incentives, if they bring in one scheme, at least Rs 300 crore of investment and achieve Rs 600 crore of turnover by the first year of performance, which is FY25. To understand more about the government’s intention and its goals, CNBC-TV18’s Latha Venkatesh spoke to Upendra Prasad Singh, Secretary, Ministry of Textiles, and Arvind Singhal, Chairman of Technopak Advisors. Singh said, “If we want to make the dent in the international market in a much bigger way, then we have to be producing more manmade fibre and technical textile. In technical textile the penetration level in India is also low.” On textile exports Singhal said, “We need much bigger focus on the overall ecosystem to do with manmade textile. It is no secret that two-thirds of global consumption of clothing -- in whichever form — is out of manmade textiles. India unfortunately has a minuscule share of that particular market. Predominantly, we are focused on cotton, so to that extent, I think directionally there is nothing wrong with the PLI scheme itself.” Singhal believes few more steps are essential to make this scheme an unqualified success. He listed out important areas where the government should focus on. He said India should focus on attracting the biggest companies in the world.
Source : CNBCTV18
The issue was raised by FIEO Chairman A Sakthivel during a meeting, chaired by Commerce and Industry Minister Piyush Goyal, on April 20. The target for services and certain goods sector was discussed during that meeting The Federation of Indian Export Organisations (FIEO) has suggested the commerce ministry to set up a committee to evaluate the country's import trends and encourage domestic production of such products to reduce the widening trade deficit. The issue was raised by FIEO Chairman A Sakthivel during a meeting, chaired by Commerce and Industry Minister Piyush Goyal, on April 20. The target for services and certain goods sector was discussed during that meeting. "In view of increasing trade deficit and surge in imports, a committee may be formed to evaluate the trend in imports and encourage domestic production of such products to reduce the increasing deficits," Sakthivel said. He also recommended the ministry to come out with a revised Transport and Marketing Assistance (TMA) scheme for exporters. It ended last month. The withdrawal of the scheme has come as a setback for Agri exporters and a lot of them are small businesses, he said. "We, therefore, request that the revised TMA Scheme may be rolled in expeditiously and may cover exports from April 1, 2021, as many exporters have factored the freight benefits while finalising the contracts," he added. The Services Export Promotion Council (SEPC) too participated in the meeting where the export target for the sector was discussed. According to the council, services exports may touch USD USD 350 billion during the current fiscal. Abhay Sinha - Director-General, Service Export Promotion Council (SEPC) - said the target has been revised from USD 300 billion to USD 350 billion for 2022-23. Target is set in consideration to the sectors which couldn't perform in the last two years due to the pandemic and hopefully will bounce back in FY23 like Travel and Tourism, Hospitality, Education and Entertainment. Besides that, there are certain sectors that will be focused upon in FY23 are market research, consulting, engineering and construction," he said. In 2021-22, services exports touched USD 250 billion.
Source: Economic Times
Minister of State for Textiles & Railways Darshana Jardosh inaugurated the 2-day Fashion Meet- Expo ’22 in Gurugram on Thursday. Minister of State for Textiles & Railways Darshana Jardosh inaugurated the 2-day Fashion Meet- Expo ’22 in Gurugram on Thursday. The event aims to digitise the textile eco-system & fast-track the design development process to optimise Indian textile and achieve the Central government’s target of $100 billion in fashion exports by 2030. The Fashion Meet-Expo ’22 was hosted by the top fashion export council under AEPC ~ BAA ~ NAEC in collaboration with SOWTEX (B2B marketplace for the fashion & textile Industry). The first day witnessed a footfall of over 500 top fashion buyers, exporters & manufacturers besides the foreign delegates from Australia, Canada & Korea. Industry experts such as Narendra Goenka, chairman, AEPC, Sevraj Syed, director, TUKATECH, Europe; Puneet Dudeja, director- business, development, WGSN, Sonil Jain, co-founder & CEO, Sowtex Network shared their views and insights. Minister of State for Textiles Darshana Vikram Jardosh said, “The entire textile ecosystem of our country is under one roof today. The initiative was taken by our Prime Minister Narender Modi, to virtually connect with the heads of Indian ministers abroad, stakeholders of today’s commerce sectors for analysing trade and achieving export targets. Today’s apparel industry is taking a share of 4.4 percent of the total Indian exports. Today I am glad to announce India’s collaboration with Australia, Canada & Korea for textile exports”. On the occasion, Sonil Jain co-founder & CEO of SOWTEX Network said, “Industry experts such as International brands Liaison Officers, Buying Houses- Sourcing Consultants, Fashion Manufactures, Mills, Industry experts, Fashion Designers – Foreign Delegates are showing full enthusiasm by being a part and attending this remarkable event. We now look forward to Day-2 of The Fashion Meet- Expo.” Day-2 will feature talks & discussions on topics such as Fabric to Fashion – Digital Product Presentation & Simulation; Sustainable Production Processes & Implementation; Developing Sustainable Product Lines & Fastrack Development; how to Infuse Trends in Sustainable Fashion; along with Start-up fashion shows such as NIFT Foundation of Design Innovation – 5 start-ups exhibiting sustainable & organic clothing line, 4 International celebrity designers showcasing sustainable collections. The event is showcasing selected 50 fabrics, trims manufacturers & fashion technology companies from India with their product development capabilities along with USP’s based on trends, materials, and technology to fashion buyers & manufacturers looking for sourcing quality, sustainable & innovative materials for domestic & international markets.
Source: The Statesman
Vietnam and India recently agreed to raise the two-way trade turnover from $13.2 billion in 2021 (a year-on-year increase of 37 per cent) to $15 billion. The agreement was reached at a meeting between Vietnamese Prime Minister Pham Minh Chinh and speaker of the Indian Lok Sabha (lower house) Om Birla, who is on an official visit to Vietnam. Prime Minister Pham suggested India create the best possible conditions for Vietnamese exports, including electronics, garments and textiles, agricultural produce and fruits, to penetrate the Indian market. He asked the two sides to continue to maintain cooperation mechanisms, including the inter-governmental committee mechanism; and further promote collabration in defence, security, culture, tourism, education and training, digital transformation, energy transformation, response to climate change, and oil and gas cooperation. They also underscored the importance of full implementation of the Declaration on the Conduct of Parties in the East Sea (DOC) and conclusion of an effective and substantive Code of Conduct in the East Sea (COC) to ensure navigation and aviation freedom, security, and safety in the East Sea, according to Vietnamese media reports.
Source: Fibre 2 Fashion
Earlier this month, India and Australia signed a landmark bilateral trade pact called the Economic Cooperation and Trade Agreement (ECTA) on 2 April. This was India's second such trade agreement in 2022 after inking a similar deal with the United Arab Emirates in February. The ECTA is expected to increase trade between the two sides to $45-50 billion over five years, from the current estimate of $27 billion, and create over 10 lakh additional jobs. It is a win-win for both partners because it will ensure uninterrupted supply of key raw material to Indian industries, while Australia will get access to a more reliable alternative to China, which has been resorting to sanctions on Australian exports including coal, beef, seafood, wine and barley. Up until now, China has dominated the Australian market for leather goods, footwear, toys, pharmaceuticals, textiles, plastics. Now the India-Australia Economic Cooperation and Trade Agreement could make India a reliable alternative. Largely, India imports key raw materials from Australia and exports finished products. According to India’s commerce minister Piyush Goyal, India’s manufacturing sector, particularly micro, small and medium enterprises (MSMEs) are interested in the Australian market as the agreement unlocks huge opportunities for Indian exports of automobiles, textiles, footwears and leather products, gems and jewellery, toys and plastic products. Under this agreement, tariffs will be eliminated on more than 85 per cent of Australian goods exports to India (valued at more than $12.6 billion a year), including coal, sheep meat and wool. India is expected to get zero-duty access to Australia for its goods such as wines, almonds, lentils, and certain fruits over five years. Australian households and businesses will also benefit, with 96 per cent of Indian goods imports entering Australia duty-free on entry into force. The negotiations had begun over a decade ago in 2011, but were restarted in September 2021. In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. Australia's goal is to lift India into its top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment. "As India chases an ambitious export target of USD 450-500 by FY23, closing the Australia and UK FTAs would be crucial milestones to achieve by the end of this year. Given that India has already reached an interim agreement with Australia, closure with the UK should also be on the cards with the upcoming visit of Borris Johnson. UK and Australia join a growing list of countries negotiating trade deals with India which includes Russia, Canada, GCC and South Africa. With these initiatives, India is well poised to push the “preferred trade partner” agenda on the global platform which will be a major push for the domestic manufacturing sector in India," said Jayesh Kothari, Associate Partner, DSK Legal.
Benefits of AI ECTA include: Australia will provide ‘preferential access’ to “all the labour-intensive sectors” of export items from India such as gems and jewellery, textiles, leather, footwear, furniture, food, engineering products, medical devices and automobiles. The trade pact slashes duties on over 85 per cent of the goods exported to Australia, putting Indian exporters at par with their Chinese counterparts since Australia and China already have a free trade agreement. ECTA also slashes import duty on a host of raw materials used by Indian exporters. India can import Australian coal cheaper than earlier. Australian coal constitutes over about 70% of total imports from Australia to India and attracts a 2.5% duty. ECTA will allow zero duty import of Australian coal, which is a key raw material for the steel sector. Under the agreement, Indian graduates from STEM (Science, Technology, Engineering and Mathematics) will be granted extended post-study work visas from two to three years. Australia will also set up a programme to grant visas to young Indians looking to pursue working holidays in Australia. Places in Australia's Work and Holiday program will be set at 1,000 per year and Australia will have two years to implement the outcome. Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market. Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products. Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine). Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine). Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years. India has, however, excluded a number of Australian products from tariff reductions under the agreement to protect “sensitive sectors” including dairy products, wheat, rice, chickpeas, beef, sugar, apples, toys and iron ore Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand. The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium. LNG tariffs will be bound at 0 per cent at entry into force. Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years. The agreement also includes strict rules of origin to prevent any routing of products from other countries and provides for a safeguard mechanism to address any sudden surges in imports of a product. "The said agreement shall remove tariffs on trade like it generally happens under all FTAs. However, it shall benefit Australia’s Agro market as this FTA shall open some of its Agricultural goods market gradually. The FTA shall enhance ability towards travel and work for citizens," said Anushkaa Arora, Principal & Founder, ABA Law Office. India has over a billion people and Australia’s population is 26 million, the per capita income of Australia is approximately 57,000/- USD, while India’s is approximately 1900/- USD. per person. "Notwithstanding this divide; the India-Australia ECTA is a winwin opportunity for both economies, as it opens the benefits of scale and thus lower costing to the Australian consumer and the large market Indian of consumers for minerals, produce and wine. From the Indian perspective, the relaxing of visa requirements, opportunities for pharma, dual-degree programs are unprecedented. This FTA has the right ingredients for success and add to this mix-the geopolitical realities this FTA must succeed. Trade is moving to countries with like-minded values and neither India nor Australia can stay out of these groupings. This is truly an opportunity for India to enter the mainstream of global and take advantage of the ‘China+1’ supply chain opportunity," said Suhail Nathani, Managing Partner, Economic Laws Practice.
Source: Times of India
In order to make Uttar Pradesh a global textile hub and attract investors in the field of handloom and textiles, the state government is soon going to introduce a new Textiles and Garment Policy-2022 under which arrangements will be made to provide all kinds of attractive facilities to entrepreneurs along with capital investment subsidy up to 40 per cent. A meeting was held under the chairmanship of Additional Chief Secretary (Handloom and Textiles) Dr Navneet Sehgal at Lok Bhawan on Thursday to finalise the draft of the Textiles and Garment Policy-2022. Officers of the Finance and Environment department and officials of various industrial organisations were present in the meeting. The additional chief secretary said this policy had been prepared after studying the textile and garment policies of other states. He said preparations were being made to provide special facilities to the investors investing in UP and in the proposed policy, investors in Purvanchal and Bundelkhand would be given additional benefits. Sehgal said that provision was being made to give 100 per cent stamp duty and land cost subsidy in the new policy. In addition, grants would be given for infrastructure facilities, he said, adding that subsidies would also be given for employment generation. “Additional grant will be given for keeping women workers in industrial institutions,” he said. To increase exports from the state, exemption in export subsidy and electricity duty will be given. Besides, 100 percent reimbursement will be given to the developer who develops a private textile park. Sehgal said that entrepreneurs would have to start production within five years from the issuance of a letter of comfort. He said under the Textiles and Garmenting Policy-2017, 79 proposals for investment in handloom and textile sector were received, out of which 53 were for micro, small and medium enterprises (MSMEs) and 26 for large, mega and super mega industries. “With the new policy, a maximum number of investors will come to Uttar Pradesh and employment opportunities will be available to a large number of people. Along with this, Uttar Pradesh will also become self-sufficient in the textile industry sector,” Sehgal said.
Source: Daily Pioneer
Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, and Industry along with Invest India conducted the Investor’s Roundtable on 20th April 2022 with the objective to boost investor confidence and take cognizance of industry-level policy recommendations to enhance investor’s business experience in India. The meeting focussed on showcasing the opportunities in India and engaging with them to handhold their India entry /expansion plans. Shri Anurag Jain, Secretary, DPIIT emphasised the need for continuous dialogues between Industry and Government for a long-lasting business relationship. He reiterated that the post-pandemic recovery in India has been fast and there is growing confidence among both domestic and foreign investors in India. He remarked that India received the highest ever FDI in the last two years. He also mentioned important reforms such as a reduction in Basic Customs Duty from 10 to 7.5%, extension of time limits for the new companies to be eligible for new corporate tax up to March 2024, the PLI schemes in various sectors and the launch of PM Gati Shakti to improve logistics efficiency and reduce logistics cost. Further, the demographic dividend and skilled workforce availability were also highlighted. India's MSME sector with over 63 million units makes for a great opportunity for collaboration with investors in the global supply chain realignment. It was emphasized that reforms are a continuous process and assured that the government remains committed to strengthening the investor experience. Shri Anurag Jain requested the companies to Make in India - Make for the World as the country offers a favourable and competitive environment for investments. The event saw the participation of 21 companies from various key investors representing sectors including the electronics, footwear, and textiles sectors. The senior officials of the State Government of Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka were present and showcased the opportunities and support offered to the industry in the respective states. The Union government was represented by senior officials from CBIC, MEA, DoC, NICDC, APEDA, CBDT, BIS MeitY, and FDI, Leather & International Cooperation (Asia) divisions of DPIIT, to address the suggestions of the investors.
Source: PIB
India has always been known for its delicate fabrics, beautiful designs and traditional textiles. The Indian textile and apparel industry is flourishing and the industry’s growth rate has increased multi-fold in the past few years. In fact, it is one of the few industries that recovered faster and recorded remarkable growth even during the pandemic. Textile exports alone were worth US$ 1.19 billion as of December 2020. The tremendous growth potential of the industry may be the reason behind the Central government of India’s announcement of the ambitious goal of increasing its textile exports to USD 100 Billion in the next five years. “India has everything it needs to get to USD 100 Billion in textile exports. The need of the hour is that all the parties, be it the industry players, the government and the industry associations and affiliates will have to work together towards achieving this dream,” says Rimjhim Hada, Co-Founder & Creative Head of a clothing brand, “Yes, it will take a lot of work but with right initiatives and meaningful collaborations, the industry can totally achieve this number.” Here are some steps that the industry and the government can leverage in order to achieve this ambitious goal of increasing India’s textile exports to USD 100 Billion. Government’s role The Government needs to take some integrated steps keeping in view the industry growth as well as overall economic growth of the country. 1. Encourage Indigenous Textile Industries The art of making cloth and textiles is as old as time and to give the textile industry of the country a boost, it is important to promote traditional and indigenous textile companies. The Ministry of Textiles has approved a Rs 160 crore (US$ 21.39 million) extension of the handicrafts sector development project in October 2021. Such initiatives by the government encourage local businesses and local artisans and their proper implementation must be taken care of to obtain favourable outcomes. 2. Financial Support Through Tariff Concessions Import and export go hand in hand. Both these activities are a testament to the global connections of the country. The government imposes, and over time, increases taxes on imports in the hopes to promote domestic manufacturing and trade. However, raising duties and customs on imports works against the spirit of the free market and may lead to greater costs of production, limiting the industries’ ability to export profitably. So, the government must maintain equilibrium when it comes to taxes on imports and takes strategic measures to curtail the imports rather than increasing import duties. 3. Help Make Micro-Units Mid-Sized There are a lot of small-sized mills and companies that function within the country. They face a lot of problems in their pursuit of growth. The lack of capital and stringent taxation are some of the major barriers for small-sized organisations. It is very important for the government to introduce schemes and financial relief programmes for MSMEs to gather funds and grow. Such opportunities are paramount to encouraging growth in the domestic textile markets. 4. Incentivize Industrialists Driving investment is one sure way to increase capital and funds in the textile industry. It is up to the government to incentivise private organisations to invest in the industry. Moreover, the government should also take steps to increase Foreign Direct Investment in small and medium-sized firms and the overall technology development as it can trigger momentous growth for the textile and apparel industry. Apart from all of this, there is a multitude of things that private organisations can do to achieve the aspired goal. Role of industry players Apart from what the government does, there are some steps that private players in the industry must undertake to achieve the 100 billion mark. 1. Increase Fixed Term Employment The textile industry is a labour-intensive field. It is important to maintain a stable workforce. Moreover, industries should also work on gradually increasing the workforce to meet domestic demands and all the while increasing exports too. This can be done by hiring more skilled, full-time workers to maximize utility, production and increase exports. 2. Stay on Top of Trends Global markets are governed by trends in the fashion industry. That is applicable not just for the textile produces, but also for means of production and sustainability. The average global consumer has gotten ‘woke’. They demand sustainability and eco-friendly means of production. In fact, given the current environment, sustainability is the future of manufacturing and textile production. The organizations need to embed sustainability to thrive in the coming years while keeping up with the global fashion trends. 3. Active Participation in International Exhibitions, Conferences and other events There is a lot of scope for the growth of the textile industry in the global arena. But to actualize the real potential, private players must put in extra efforts to create an international presence that can be done via participating in global conferences, and exhibitions. They must scout for and get involved in the Government industry exchange programs or trade fairs should as it can open newer and wider markets, boosting revenue growth. 4. Play to your Strengths Indian textile is popular in the international community for its vibrant colours, traditional designs, durability, regional handloom techniques and versatility. It is important to leverage these inherent advantages to our favour and promote the uniqueness of indigenous textiles across the world as much as possible. This will allow the private players as well as the industry to monetize their strengths, ultimately leading to the substantial increase in exports Summing it up Taking active steps and utilizing manufacturing best practices can help the industry gain more traction and push it forward. Both the government and private parties will have to cooperate to increase the textile exports to greater heights. Being one of the largest textile and apparel industries in the world, India has everything it takes to be a global leader in the industry. If all the stakeholders come together and work towards the common goal of reaching 100 billion, the industry can actually surpass the 100 billion mark and set new milestones for the world. What do you think? Authored by Anurag Singh Khangarot, Co-founder, Aachho.
Source: APN News
With the vision to promote sustainable trade and create market linkages, a mega buyerseller meet was organized on 21st April, 2022 at Jammu and Kashmir under One District One Product initiative of Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry with the support of Jammu & Kashmir Trade Promotion Organization (JKTPO). The Buyer Seller Meet witnessed the presence of multiple national and International Brands with the cumulative revenue of over Rs 8,000 Crores and having their products available in over a million retail outlets across the world. Sellers, Traders, Farmers, Aggregators from various districts of Jammu & Kashmir showcased their products that are unique to the valley including the world-famous Kashmiri saffron, Himalayan White Acacia Honey, Red shiny Kidney beans, freshly grown organic vegetables and more. The Buyer Seller Meet provided a platform where different Government departments and institutions came together to boost the trade of selected products. Jammu & Kashmir agriculture and industries department worked together to bring quality products as per market requirement and it was imperative to connect this best-in-class products with renowned brands to improve earning potential of farmers. Collective discussion between all the stakeholders generated innovative ideas on diversification of products such as saffron based dairy products, Walnut based bakery products and more. Focused trade discussions were facilitated between the buyers and sellers which resulted in signing of Letters of Intent for 4 products amounting to INR 1.2 crores. The above is a direct outcome of the vision of ‘Aatmanirbhar Bharat’ (Self Reliant India). DPIIT, under its initiative of One District One Product is working to ensure such linkages with a string focus on increasing farmers income. With over 700 products cutting across sectors like agriculture, textiles, handicrafts and manufacturing, the ODOP Initiative seeks to select, brand and promote one product from every district of the country. This is marked by a key role – to coordinate, create collaborative networks and enable handholding of buyers and sellers for the larger aim of trade promotion and facilitation. The keynote address for the event was made by Shri. Som Parkash, Minister of State, Ministry and Commerce and Industry with the presence of various dignitaries such as Smt. Sumita Dawra, Additional Secretary, DPIIT; Shri. Navin Kumar Choudhary, Principal Secretary, Department of Agriculture Production and Farmers’ Welfare along with other subject matter experts from the Agricultural and Horticultural Departments of the Govt. of J&K. Alongside the Buyer-Seller Meet, an e-commerce onboarding session was also held by one of the leading e-commerce players in the country in order to support J&K based sellers to expand trade into web-based sales. Previously, the ODOP Initiative had facilitated the sale of 6750 kilograms of apples and 2000 kgs of walnuts from Budgam, Kashmir to Karnataka based buyers that were previously importing the same. Through the recognition of unique selling propositions (USP) of various products and keen handholding, the ODOP Initiative seeks to replicate such efforts at a larger scale through its latest mega buyerseller meet.
Source: PIB
This will boost its handmade in India programme and provide a global platform for artisans and sellers of handcrafted products, said a statement by Reliance Retail on Thursday said it will launch a dedicated artisan-only store format 'Swadesh', which will showcase agriculture & food products, handlooms, clothing, textiles, handicraft and handmade natural products. This will boost its handmade in India programme and provide a global platform for artisans and sellers of handcrafted products, said a statement by Reliance Retail. The first Swadesh store is expected to open in the second half of 2022, it said. "The programme is being spearheaded by Reliance Retail's handicraft brand Swadesh, which envisages an artisan-only dedicated store format for handcrafted products from across the country," it said. Besides, Reliance Retail, a subsidiary of Reliance Retail Ventures Limited (RRVL) is exploring new partnerships with state governments to create a strong, vigorous and sustainable ecosystem for local artisans, the statement added. As part of that, an MoU was signed on Thursday at the Bengal Global Business Summit in Kolkata with the state government. The Swadesh store will house a wide range of products including handmade textiles, handicraft, agriculture products and other artisanal merchandise, which will be sourced directly from artisans. "Swadesh will also build a global marketplace to connect Indian artisans and sellers of authentic handmade products to consumers across the world," it said. Commenting on the development, RRVL Director Isha Ambani said the future of Indian arts and crafts is poised for an exciting stage. "We see a great opportunity for the artisans of our country in co-creating and co-curating handcrafted Indian products for the world. To realise this opportunity, Reliance Retail is partnering with various government organizations to help popularise various local art forms, both nationally and globally," she said. Swadesh will showcase everything from apparel, home textiles, home decor, furniture, jewellery, wellness products and more, Ambani added. Reliance Retail will also explore new partnerships with state governments and create a sustainable ecosystem for local artisans. It has already signed an MoU with Ministry of Textiles which enables the sourcing of authentic crafted products, directly from artisan communities. "Another unique partnership has been finalized and an MoU has been signed with Department of MSME & Textiles, Government of West Bengal. The aim of this partnership is to build a healthy, dynamic ecosystem that will help both Government of West Bengal and Swadesh realise the vision of sustainable employment and an enriched standard of living for the artisan community," it added. RRVL is the holding company of all the retail companies under the RIL Group. It had reported a consolidated turnover of Rs 1,57,629 crore for the year ended March 31, 2021.
Source: Business Standard
The Department of Trade and Industry and several stakeholders again called for the ratification of the Regional Economic Cooperation Partnership (RCEP) saying the free trade deal will help the Philippine economy. RCEP includes Australia, China, Japan, South Korea, New Zealand, and the 10-member ASEAN. It seeks to eliminate up to 90 percent of tariffs between signatories within 10 years of taking effect. The Philippines has yet to ratify its participation in RCEP after Filipino lawmakers deferred their decision on the matter. With elections coming up in May, a new set of lawmakers will have to be briefed on RCEP. Trade Assistant Secretary Allan Gepty said the Philippines needs to take part in the RCEP to boost trade and investment. “The RCEP region represents 50 percent of the global manufacturing output, 50 percent of global automotive output, 70 percent of electronic products, 26 percent of GVC (global value chain) trade volume, 35 percent contribution to global export of electronics and machineries, 60 percent of GVC for electrical, machinery, petroleum, chemicals, textile, apparel, metal and transport equipment, and most interestingly, the main GVC hubs of Japan, China, and Korea,” Gepty said. In terms of foreign direct investments, more than 60 percent of the Philippines’ FDIs come from RCEP countries, Gepty added. He noted that the Philippines has moved up in ranking in Southeast Asia as a destination for FDIs and that membership in RCEP will sustain this. “And again that tells us that we cannot afford not to be part of this RCEP region, because the bulk of our FDIs are coming from these trading partners." https://news.abs-cbn.com/business/02/09/22/bpo-industry-to-benefit-from-rcepsays-adb Henry Lim Bon Liong, President of the Federation of Filipino Chinese Chambers of Commerce and Industry Inc, said the ratification of RCEP would help the the country hit its 7.5 percent growth target this year. . “This is what businessmen are longing for," Liong said. Theresa Chong Cariño, Senior Research Consultant at the Amity Foundation tackled the claim that RCEP would only benefit China. She said that in 2020 Chinese imports from RCEP members reached $778 billion exceeding the country's exports to them of $700 billion. “So, I mean the complaint before has always been a trade imbalance. I think that is beginning to change,” Cariño said. She added that nearly a fourth of China’s total imports during 2020 came from RCEP members, and in the first 11 months of 2021, China’s trade with RCEP members represented 31 percent of its total foreign trade value in the same period. “So that is how important ASEAN has become for China," Cariño said. Several groups however have opposed the ratification of the RCEP saying the free trade deal will have a negative impact on the Philippine economy, especially the agricultural sector. Some groups are concerned that RCEP will have a negative impact on the Philippine economy, especially the agricultural sector. Former Agriculture Secretary Leonardo Montemayor has said that RCEP will allow more agricultural products from other countries to easily enter the country and compete with local products as tariffs are removed. In 2019, India opted not to join RCEP fearing its domestic producers could be hard hit if the country was flooded with cheap Chinese goods. India, Asia’s third-largest economy, flagged textiles, dairy, and agriculture as vulnerable industries. Cariño meanwhile said that RCEP will members would be enjoined to maintain peace within the region to ensure the success of the free trade pact. “What’s important is that with RCEP, ASEAN as a whole will uphold rules-based architecture and work for cooperation, peace, stability, and prosperity. You know no matter what kind of FTAs will be implemented, the environment of peace and stability is essential to their success," Cariño said. China, which is the main backer of RCEP, has territorial disputes with Japan and several members of ASEAN including the Philippines.
Source: ABS-CBN News
Cambodia-S Korea bilateral trade urged by 22.8 per cent to $234.4 million in the first quarter (Q1) of this year, according to figures from the general department of customs and excise in Cambodia, which exported $61.3 million worth of goods to South Korea in the duration—a 22.2 per cent increase compared to the same period last year. Cambodia imported $173 million worth of goods from South Korea—a 23.1 per cent rise, a Cambodian newspaper reported. The two countries are expected to see an increase in bilateral trade volume once the Cambodia-Korea Free Trade Agreement is put into force, Cambodian ministry of commerce spokesman Penn Sovicheat said recently. Cambodia has already ratified the FTA and South Korea is in the process of ratifying it. South Korea is Cambodia’s main market for agricultural products, clothes and footwear, Sovicheat said. South Korea’s major exports to Cambodia include cars, machinery, textiles and agricultural and marine products. South Korea had pledged to expand economic and trade cooperation with Cambodia after signing the agreement last year, said South Korean President Moon Jae-in in a meeting with Cambodian Prime Minister Hun Sen in Seoul in February. According to the Korean International Trade Association, bilateral trade between Cambodia and Korea topped $965 million in 2021, a year-on-year increase of 9 per cent.
Source: Fibre 2 Fashion
Troubles have come to the eurozone economy not as single spies but in battalions. First, it was the COVID pandemic, which hit major eurozone economies like those of Italy and Spain particularly hard. Then it was a surge in eurozone inflation to record levels, which will soon force the European Central Bank to slam on the monetary-policy brakes and thereby heighten the risk of a European economic recession. Now it is Russia’s Ukrainian invasion, which has sent energy prices through the roof, severely sapping countries like Germany and Italy that are overly dependent on Russian natural-gas imports. All this could have serious consequences for the global economy. Not simply because a slowdown in the eurozone economy could mean less favorable export markets for the rest of the world. The need to slam on the brakes and raise rates at a time when some eurozone countries have very weak public finances could precipitate another round of sovereign-debt crisis. That in turn could raise questions anew about whether the euro can survive in its present form. As we learned during its 2010 debt crisis, the eurozone is not well-placed to handle economic shocks that hit some member countries harder than others. That is because in 1999 all eurozone members gave up their individual currencies for the euro. As a result, they no longer have their own independent monetary or exchange-rate policies to use as a cushion to promote exports and thereby soften the blow of their economic shocks. Lacking its own currency to deal with such shocks is especially problematic for countries in the eurozone’s periphery like Italy, which has a large budget deficit and the highest public-debt-to-GDP ratio in that country’s 150-year history. If Italy is to avoid another debt crisis, there is no question it has to place its public finances on a sounder footing. Italy, however, might once again learn that budget belt-tightening in a euro straitjacket is counterproductive. No longer able to devalue its currency to promote exports as an offset to the economic effect of reduced budget spending, Italy could find itself in another deep economic recession that would curtail its tax-revenue-collection ability. Over the past two years, the ECB’s bond-buying programs have kept countries in the eurozone’s periphery, including most notably Italy, afloat. In particular, under its €1.85 trillion ($2 trillion) pandemic emergency purchase program, the ECB has bought most of these countries’ government-debt issuance. That has saved them from having to face the test of the markets. With eurozone inflation having picked up to 7.5% — an all-time high — it must be only a matter of time before the ECB is forced to slam on the monetary-policy brakes. The eurozone’s troubled economic periphery should know such tightening would include a stop to the ECB’s bond-buying programs. The bank has already ended its pandemic emergency purchase program and is intimating it will end its other purchasing programs this fall. The end to ECB bond-buying would seem to be setting the stage for another round of eurozone debt crisis, especially should the eurozone succumb to another economic recession. This must be of deep concern to the rest of the world economy. In 2010, the Greek sovereign-debt crisis shook global stock markets and sparked fears of financial-market contagion that might have derailed America’s fragile economic recovery. How much more shock would another round of the eurozone crisis cause today if it were centered on Italy, which has an economy some 10 times the size of that of Greece? The last thing the world economy needs is another round of the eurozone debt crisis. This is especially the case at a time the Federal Reserve’s efforts to rein in inflation could precipitate a US economic recession and China’s zero-tolerance COVID policy could lead to a marked slowdown in the world’s second-largest economy. Yet we might well have to brace ourselves for such a crisis as the ECB is forced to curtail its bond-buying activities to deal with its own inflation problem.
Source: New York Post
Cotton consumption in Bangladesh in marketing year (MY) 2022-23 will increase by 5.6 per cent year-on-year to 9.31 million bales. This can be expected for a rise in demand for yarn and fabrics for corresponding placements of work orders from international clothing retailers and brands, according to United States Department of Agriculture (USDA). The marketing year in cotton sales starts from August and ends in July. Bangladesh has been receiving more work orders since the beginning of 2021 as many brands are shifting their orders from some of the competitor countries such as Vietnam and Indonesia, said the USDA. Contacts also stated that Bangladesh is expecting more work orders in the coming months due to recent Covid-19 lockdowns in China, said the USDA. The USDA data also put domestic raw cotton consumption in the MY 2021-22 at 9 million bales, which is 2.27 per cent higher than initial USDA official estimates. The USDA data forecasts that in the MY 2022-23 yarn and fabric consumption would reach 0.96 million tonnes and 6.4 billion metres respectively. For the MY 2021-22, the data estimates yarn and fabric consumption to be 0.95 million tonnes and 6.3 billion metres respectively. It forecasts that in the MY 2022-23 cotton imports would reach 8.9 million bales, up 7.2 per cent from the MY 2021-22 USDA official estimate, assuming increasing yarn and fabric demand by the garment industry. The USDA estimates the MY 2021-22 cotton imports to be of 8.7 million bales, up 4.8 per cent over initial USDA official estimates. According to the National Board of Revenue data, Bangladesh has imported approximately 5 million bales of cotton in the first seven months of the MY 2021-22. "We also believe that both the import and consumption of cotton will grow by nearly one million bales in the MY 2022-23," said Monsoor Ahmed, chief executive officer of Bangladesh Textile Mills Association, the platform for the primary textile millers. This is because the local spinners have already increased their spindle capacity while new investment in the primary textile sector came in even in the time of the Covid-19, Ahmed told The Daily Star over the phone. Of the import destinations, India accounts for the largest market share. In 2021, by quantity, Indian cotton made up 29 per cent of the imports, followed by Brazil (15 per cent), Benin (13 per cent), and the United States (9 per cent). The volume of US cotton exports to Bangladesh in 2021 was approximately 816,000 bales, 58 per cent lower than that in 2020. Indian cotton is exported via Kolkata seaport and Benapole land port, with traders noting that transportation and logistics are cheaper as compared to other origins, with shorter shipment times due to geographic proximity. The USDA forecasts that stocks at the end of the MY 2022-23 would be at 2.25 million bales, approximately 11 per cent lower than the MY 2021-22 USDA official estimate. Due to global cotton supply chain issues and increased prices, local spinners will reduce their stock. The USDA's post said in the MY 2021-22 the remaining stock of cotton was estimated to be 2.51 million bales, similar to the USDA official estimate. New orders for the Russian market contacts note that garment exporters in Bangladesh are uncertain about receiving payments from Russian buyers as Russian banks have been cut off from SWIFT. They are also worried about shipments of existing orders to Russia, as shipping lines are suspending container bookings to the country. According to the local news, the Bangladesh Garment Manufacturers and Exporters Association has asked exporters not to accept any new orders for the Russian market. The textiles industry in Bangladesh is composed of yarn, fabric and dyeing-printingfinishing mills. According to Bangladesh Textile Mills Association (BTMA), in calendar year (CY) 2021, the number of spinning mills reached 510 with an annual spindle capacity of 15 million bales, up 18 per cent and 7.1 per cent respectively from that the previous year. However, Bangladesh is currently only consuming approximately 8.5 million bales of raw cotton annually. Bangladesh's yarn production recovered in 2021 following an extended period of market disruption due to Covid-19 induced lockdowns and restrictions in 2020. The USDA post forecasts the MY 2022-23 yarn production at 760,000 tonnes, up 1.3 per cent compared to that in the MY 2021-22. For the MY 2022-23, the USDA forecasts cotton harvest area at 46,000 hectares, up 2.2 per cent over the MY 2021-2022 USDA official estimate. The post's forecast for MY 2022-23 cotton production is 155,000 bales, up 2.6 per cent over the MY 2021-22 USDA official estimate, assuming favorable weather conditions and continuous government support. Domestically produced cotton accounts for less than 2 per cent of total cotton consumption. Total cotton cultivation in Bangladesh covers only 0.55 per cent of the country's 8.1 million hectares of arable land. Bandarban, Jhenaidah, Jashore, and Rangamati are the major cotton producing areas of the country.
Source: The Daily Star
This Earth Day, Canopy has announced that eight new fashion companies have joined the CanopyStyle initiative to keep ancient and endangered forests out of the viscose supply chain and help conserve the world’s most vital forests, biodiversity, and climate. The brands include Shein, Hanky Panky, ocean+main, River Island, AllSaints, Kmart Australia and Boody. These companies are uniting with the 478 brands already signed on to CanopyStyle to save forests. CanopyStyle is a collaborative initiative dedicated to transforming viscose supply chains away from sourcing from forests and accelerating the production of low-carbon, next generation solutions like recycled-textile or agricultural residue derived viscose, the organisation said in a media release. “This is the turnaround decade for our planet, and forests have a huge part to play in mitigating the climate crisis and conserving biodiversity,” said Nicole Rycroft, Canopy’s executive director. “That’s why, on Earth Day, we are so encouraged to see this new wave of global fashion brands committing to revolutionize their supply chains to keep vital forests standing and scale the production of Next Gen alternatives.” “At Hanky Panky, we have always had high standards for social responsibility and sustainability,” said Gale Epstein, president and creative director of Hanky Panky. “So we are pleased today to be adding to this legacy by joining CanopyStyle and Pack4Good, and collaborating to ensure forests stay out of our supply chains, and are conserved for generations to come.” “At Shein, we understand that protecting our forests is essential to creating a better planet for future generations," said Adam Whinston, global head of ESG at Shein. "Canopy has made important advancements in addressing the social and environmental concerns associated with man-made cellulosic fibres, and we are excited to join peer companies in the commitment to responsible viscose.” More than 200 million trees are logged every year to make cellulosic fabrics such as viscose and rayon — many from the world’s most vital forest ecosystems. If placed end-to-end those trees would circle the Earth seven times. Currently, forests in Indonesia, Canada’s Boreal, Australia, and Brazil are being logged for next season’s fashion and apparel. The brands have committed to ensure their viscose supply chain is free of ancient and endangered forests; maximises alternative next generation fibres such as recycled textiles and agricultural residues; and uses FSC-certified wood if virgin forest fibre needs to be used. A majority of these brands have also joined Pack4Good, Canopy’s initiative to make sure they are implementing smart packaging design and using the most eco-friendly paper packaging.
Source: Fibre 2 Fashion
