The Ministry of Micro, Small and Medium Enterprises has launched a revamped Zero Defect Zero Effect (ZED) Certification Scheme. The first phase of this overhauled programme will focus on manufacturing MSMEs while the second would be for those MSMEs in the services sector. According to an official presentation, the ZED certification can help MSMEs get easier access to capital. Speaking at an event to launch the scheme, MSME Minister Narayan Rane said, “MSMEs contribute 30 per cent to India’s Gross Domestic Product and 50 per cent to the export from this country.” Elaborating the contours of the new scheme, Vinamra Mishra, Director, Ministry of Micro, Small, and Medium Enterprises said, “MSMEs that have ZED certification will be eligible to get concessions on parcel special trains, as well as get preferences from credit bureaus and banks. As of November last year, 23,948 MSMEs had registered with intent to adopt the principle of the ZED Scheme. This scheme is part of a drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.
Source: Business Standard
As arrival of new cotton in the market dries up gradually, the demand for yarn is likely to rise, pushing up the price. North India’s cotton yarn market is expecting better demand and positive sentiments by second week of May. For the last couple of days, cotton yarn prices have remained stable as demand from downstream industry continues to be weak. Gulshan Jain, a trader from Ludhiana told Fibre2Fashion that cotton arrival is drying up gradually. Spinning mills have already reduced cotton production. They are focusing on production of thinner yarn to cut cotton consumption. Traders feel that lower supply of cotton will encourage buyers for stocking. The sentiment can turn to positive after May 10. But current demand has not improved yet in local yarn market because of poor lifting from weaving and garment industry. In Ludhiana, cotton yarn prices were unchanged as mills were not ready to cut prices. 30 count cotton combed yarn was sold at ₹415-420 per kg (GST Inclusive). 20 and 25 count combed yarn were traded at ₹380-390 per kg and ₹405-410 per kg respectively. Carded yarn of 30 count was quoted at ₹390-400 per kg, according to Fibre2Fashion’s market insight tool TexPro. Trade sources from Delhi market said that currently fabric manufacturers are buying cotton yarn just for immediate consumption. The demand is not very encouraging, and stockists and traders are selling from their stocks. Delhi market noted steady prices in yarn amid weaker demand. In Delhi market, 30 count combed yarn was traded at ₹390- 410 per kg (excluding GST), 40 count combed at ₹435-450 per kg, 30 count carded at ₹365-375 per kg and 40 count at ₹405-415 per kg. Panipat’s textile industry is facing short supply of comber (cotton waste) which is used extensively in local furnishing industry. Rugs and old clothes are also short in supply due to disruption in imports from Europe which is a major supplier of the raw material. Power shortage since the last 8-10 days is leading to lower production of recycled yarn. However, according to traders, yarn prices are not getting support despite limited supplies because of weaker demand from downstream industry. In Panipat market, 10s recycled yarn (white) was traded at ₹105-115 per kg, 10s recycled yarn (coloured - high quality) at ₹130- 140 per kg, 10s recycled yarn (coloured - low quality) at ₹90-100 per kg and 20s recycled PC yarn (coloured) at ₹170-180 per kg. 10s optical yarn was traded at ₹125-130 per kg in the market (excluding GST). In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 155 to CNY 26,910 per ton and September 2022 sold higher by CNY 560 at CNY 27,780 per MT today. ZCE cotton May gained CNY 175 to CNY 21,710 per MT and September contract traded up by CNY 370 to CNY 21,495 per MT. ICE Cotton futures witnessed a sharp recovery in prices, hitting a limit-up, led by supportive technical and surge in equity markets. ICE June contract increased by 5 cents to 140.68 cents per pound, while December contract traded higher by 3.68 cents to 122.39 cents per pound. In Gujarat, cotton prices gained ₹400-500 per candy of 356 kg on Thursday amid increased demand from spinning mills, while daily arrival also improved. In Punjab, cotton spot delivery rates were quoted at ₹93,000 to 94,000 per candy. In Haryana, cotton was sold at ₹91,500 to 93,700 per candy. In Upper Rajasthan, cotton was priced at ₹93,500 to 94,000 per candy. In Lower Rajasthan, cotton was traded at ₹89,000 to 92,000 per candy.
Source: Fibre 2 Fashion
Union Cabinet chaired by Prime Minister Narendra Modi has accorded approval to the opening of a new Indian Mission in Lithuania in 2022. This will boost trade between the two countries. Opening of Indian Mission in Lithuania will help expand India’s diplomatic footprint, deepen political relations and strategic cooperation, enable growth of bilateral trade, investment and economic engagements, facilitate stronger people-to-people contacts, allow for more sustained political outreach in multilateral fora and help garner support for India’s foreign policy objectives. Indian Mission in Lithuania will also better assist the Indian community and protect their interests, the Indian ministry of external affairs said in a media release. “The decision to open a new Indian Mission in Lithuania is a forward-looking step in pursuit of our national priority of growth and development or ‘Sabka Saath Sabka Vikas’. Enhancement of India’s diplomatic presence will, inter-alia, provide market access for Indian companies and bolster Indian exports of goods and services. This would have a direct impact in augmenting domestic production and employment in line with our goal of a self-reliant India or ‘Atmanirbhar Bharat’,” the release added. Textile exports account for 4.28 per cent of the total exports of Lithuania, amounting to $1404.84 million annually, according to Fibre2Fashion’s market insight tool TexPro. Russian Federation, Germany, Denmark, United Kingdom and Latvia are the top export destinations for Lithuania’s textile products. As for the imports, Lithuania imports textiles worth $1531.09 million annually, mainly from China, Germany, Poland, Italy and United Kingdom, as per TexPro.
Source: Fibre 2 Fashion
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal on Thursday called for further strengthening of ethics and corporate governance norms in startups. Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal on Thursday called for further strengthening of ethics and corporate governance norms in startups. He was addressing the 'Confederation of Indian Industry (CII)- Global Unicorn Summit- Shaping 1,000 Unicorns by 2030' in New Delhi. Observing that India is home to 95 unicorns, Goyal said, "We needed just one more sixer to hit a Century of Unicorns. The government's efforts to reduce regulatory compliance burden has encouraged innovation and promoted commercialization of IPR and made it easier to begin, operate, grow and exit businesses." Expressing his desire that startups must incorporate in India and list in India and not move to tax havens, Goyal urged them to approach the government if they face any issues and assured that it would strive to resolve problems. He stressed that instances of fudging revenues, data fraud, tax evasions and other malpractices have to be curbed at an early stage or it would kill the entrepreneurial spirit of young startups and have a very damaging effects to the startup ecosystem. Speaking of the tech revolution that Indian economy has been witnessing, with unicorns emerging in Fintech, Edtech, Healthtech, e-Commerce and media among other sectors, the Minister reminded that within 2-3 months of Startup India Global VC Summit 2019, National Startup Advisory Council (NSAC) was formulated, which, he said, had done a stellar job in promotion innovation and startups. Goyal stressed that Indian startups are now offering some outstanding, high-quality solutions to the modern problems faced by society. He cited examples of Qure.ai, the Mumbai-based Startup that uses deep learning algorithms to interpret X-rays and CT scans in seconds and Bengaluru based CropIn Technology which provides one-stop SaaS based solutions to farmers - real time weather updates and predicts crop yields. Speaking of the need to encourage startups whose business model is based on high tech innovation in engineering, defence or significant scientific advances, the Minister said that technology makes the impossible, possible! With rise of digital commerce metaverse new opportunities for the users and providers to connect will be unlocked, he said and asked for the metaverse to be leveraged to boost trade and commerce. Quoting Prime Minister Narendra Modi, the Goyal said "Don't just keep your dreams local, make them Global' and added that many of India's startups were already venturing out beyond the borders of India and making a mark for themselves in both emerging economies and developed world by being scalable and affordable". Asking the nation to buy from startups and encourage B2B procurement from startups, the Goyal further said," Startups must also be stimulated by subscribing to their IPOs and giving them access to domestic capital". The Minister also called for the creation of a Gen-next National Council which would serve as an advisory body to nurture entrepreneurial talent and potential of our youngsters and to give both continuity and change to the startup ecosystem through its structure and functioning.
Source: Dev Discoure
Skill development training will be provided to 50 handloom weavers through the National Institute of Design at Rs 50 lakh. Minister for Handlooms and Textiles R Gandhi announced in the Assembly on Thursday that a mega integrated textile and apparel park spread over 1,000 acres will be established in Virudhunagar district. On other initiatives planned by his department, the minister said an MoU will be inked with the National Institute of Fashion Technology to create 500 new designs per year at a cost of Rs 50 lakh, to boost sales of handloom products. Skill development training will be provided to 50 handloom weavers through the National Institute of Design at Rs 50 lakh. To improve productivity of Tamil Nadu Zari Limited, renovation work will be undertaken for Rs 2.50 crore. To ensure quality of handlooms, a TN Handloom Authenticity Body will be established at a cost of Rs 1 crore. To enhance capacity of power looms, 50% subsidy will be given to install electronic panel boards, for which `6 crore will be allocated. Measures will be taken to provide geo-tagging for handlooms and power looms at a cost of Rs 10 crore. Besides, the department is trying to get GI tags for Negamum saree, Veeravanallur Chedibutta saree, Woraiyur cotton saree and other unique handloom varieties. An exclusive showroom ‘Handlooms of India’ will be established for Rs 10 crore, while Rs 1 crore will be allocated to prepare a detailed project report to establish a textile city in Chennai. A technical advisory committee will give suggestions for improvement of textile industry.To preserve and protect traditional handloom products, the department has proposed to digitalise and electronically document such products, the minister added.
Source: New Indian Express
There’s been huge growth in manufacturing investment of late. I can see the green shoots of investment coming back to India in a big way particularly private investment,” Goyal said at the Global Unicorn Summit organised by the Confederation of Indian Industry. Commerce and industry minister Piyush Goyal on Thursday said that the government is trying to reduce the compliance and regulatory burden so that it becomes easier to operate, grow and exit, from businesses amid green shoots of investment coming back to India. “There’s been huge growth in manufacturing investment of late. I can see the green shoots of investment coming back to India in a big way particularly private investment,” Goyal said.
Source: Fibre 2 Fashion
The handlooms and textiles department is contemplating establishing a textile city in Chennai. The department has sanctioned Rs 1 crore to conduct a feasibility study and submit a detailed project report in this regard, minister for handlooms and textiles R Gandhi informed the Tamil Nadu assembly on Thursday. The government would also take measures to establish ‘Tamil Nadu pavilion’ in international textile fairs to promote the products from the state. A technical advisory committee, compromising experts from the sector, would be created to aid the industry to flourish, the minister said.
Source: Times of India
The government has taken several steps to strengthen the startup ecosystem and startups should focus on tier 2 and 3 cities, which holds huge business opportunities, DPIIT Secretary Anurag Jain said. The government has taken several steps to strengthen the startup ecosystem and startups should focus on tier 2 and 3 cities, which holds huge business opportunities, DPIIT Secretary Anurag Jain said on Thursday. Department for Promotion of Industry and Internal Trade (DPIIT) Secretary also called upon startups to look for sustainable solutions for the problems being faced by the society at large. We should not forget the rural markets, tier 2 and 3 cities. Rural market will grow very fast... In our solutions, we should always remember whether my solution is sustainable or not," Jain said at CII's Global Unicorn Summit - "Nurturing 1000 Unicorns by 2030." He added that India's startup ecosystem is the third largest in the world and the country is second highest in adding the number of unicorns. "Now we are adding 80 startups everyday and that pace is the highest in the world... We can hope to become the largest startup ecosystem in the world in the times to come... More than half of the startups come from tier 2-3 cities," he added.
Source: Economic Times
The fashion industry is a modern-day product and the industry is made up of several sorts of companies, including shops, design sourcing and sales firms. The Indian fashion sector can continue to grow and expand its appeal. The fashion industry is warming up to the actual extent of sustainability. According to India Brand Equity Foundation (IBEF), the Indian apparel industry and textiles contributed 2.3% to the GDP of India, 13% to industrial production and 12% to export earnings. Future scope: In a few years, the Indian fashion business is predicted to reach US $400 million, with a year-on-year growth rate of more than 10%. India is the world's secondlargest exporter of textiles and clothing. In the current day and age, there are endless opportunities in the fashion industry as umpteen jobs with lucrative salaries are available for creative mindsets. Fashion design, research, and garment manufacture, as well as textile design, are the most popular fields of employment in the industry. Role & salary: Fashion designers: Fashion design covers a wider field of design that includes jewellery, footwear, accessories, luggage, and other products as well. The initial salary for a fashion designer varies depending on the place of employment and reputation, but on an average, a fashion designer earns between Rs 3-6 lakh per year as a starting salary. Fashion stylist: This aspect of a fashion industry professional's employment includes maintaining the appearance and elegance of fashion shows, events, publication shoots and other similar fashion-related promotional initiatives. They pay attention to makeup, dress, and hairstyle to guarantee that the show and the current cast members look their best. The initial salary is around Rs4-5 lakh. Fashion merchandisers: They investigate their clients' historical purchase tendencies to choose what products to provide for a company. They typically work with management to create budgets and revenue-generating goods. The initial salary in this profile is Rs 3-5 lakh per year. Retail manager: A store manager is responsible for a variety of responsibilities, including setting sales goals and promoting items. One of its main responsibilities is to provide the best degree of customer satisfaction possible. Initially, they can earn around Rs 3-5 lakh. Textile designer: Their work determines the product's innate quality, composition and how it would suit a purpose in general. This field provides an initial salary of more than Rs 4.5 lakh per year and increases as experience uplifts. Fashion PR specialist: Public relations professionals collaborate with marketing experts to create events that increase consumer awareness of the brand and product. In addition, the public relations professional is in charge of writing news releases and responding to media queries. They can get an initial salary of Rs 5-6 lakh per year. UX designers: As we all are heading towards digitalisation, so does the fast fashion industry. Digital design is the future of the fashion industry too. One who can have a good hold in fashion and technology then must choose UX design as their career path. UX designers who focus on the usability and functionality of digital design can get an initial salary of Rs 4-5 lakh per year. Product developers: From design conception through production completion, product developers manage the apparel process. They are the primary contact for the apparel firm with the manufacturer, and they are in charge of selecting the best factories for each product. The budget and timeline agreements with the manufacturing are handled by the product developer. They are usually offered an initial salary of Rs 5-6 lakh per annum. Graphic designers: Individual graphics printed on clothes and other merchandise are created by graphic designers using a combination of hand sketching and computer-aided design. Graphic designers have a keen sense of colour and design harmony, which they employ to create aesthetically appealing visuals. Their initial salary is Rs 2-4 lakh per year. Retail buyer: Retail buyers pick the goods variety available for customers to peruse at retail or department shops. When choosing things to offer, they evaluate market demands, current style trends, pricing, quality, and their customers' buying patterns. They can get the salary of Rs 5-6 lakh per year. Creative director: The creative directors are responsible for deciding on a clothing season's overarching concept, colour palette, and styling. They might work for a fashion company or a fashion publication. A clothing creative director does trend research and analyses high-level sales data to identify which trends and styles are most likely to be purchased by their clients. Creative directors are offered an initial pay package of Rs 5-6 lakh.
Source: Times of India
Roughly 200-year-old high-priced handloom-based fabric revived after 6 years of research. Researchers in Bangladesh have resurrected Dhaka muslin, a prized handloom-based fine cotton fabric, with a greater opportunity for commercial production. Production of the highly prized Mughal-era cloth, which could be passed through a finger ring, was suppressed by the British colonial rulers to promote their own machine-spun muslin and textiles in Indian and European markets. The Dhaka muslin, named after the Bangladeshi capital, was famous worldwide, especially in Europe in the 17th and early 18th centuries. There were different types of handloom-based muslin across the Indian subcontinent, but the Dhaka muslin was unique and precious, said Md. Monzur Hossain, a botany professor at the University of Rajshahi and head of the research team. “Soon the British realised the value of the Dhaka muslin. They started producing their own muslin by exporting key ingredients, cotton plants, and skilled workers to Europe from Bengal, now Bangladesh. But their machine-spun British textiles weren’t as lucrative or gorgeous as the Dhaka muslin,” Hossain said. Subsequently, British rulers forcefully stopped the production of the Dhaka muslin by imposing restrictions on weavers. “There was talk that British rulers cut off fingers of muslin weavers in Dhaka,” he added. During the pre-colonial Mughal era, Mughal rulers heavily supported the production of the Dhaka muslin, which had faced hostile treatment during the British colonial era, he said, referring to historical archives.
Muslin returns in painstaking effort Mohsina Akter joined as a spinner at the project four years ago. “It requires utmost patience and concentration. Your mind needs to be cool and peaceful to spin the fine thread through the wooden spinning wheels,” she said. “I found it the most difficult job on the planet. Only women's soft fingers are required for spinning fine cotton. Spinners have to go through finger treatment and only women spinners can produce fine yarn at the wooden spinning wheels.” It also requires perfect weather, as hot or unstable air conditions could make it difficult to produce fine cotton, she added. “It takes eight hours of non-stop labour to weave an inch of cloth. If we lose concentration then it will tear up the yarn and backwards the whole task.” A research team led by Hossain was formed to resurrect the Dhaka muslin. The team visited the Victoria and Albert Museum in London to view 30 original samples of muslin and analyze them. “It took about six years of painstaking effort to resurrect something we have never even touched or seen,” he told Anadolu Agency. First, we advertised across the country if anyone had a sample or knowledge of the Dhaka muslin and the cotton plant named Phuti karpas, a variety of Gossypium arboreum cotton. “We were unlucky to trace any specimen of the Dhaka muslin in Bangladesh.” Meanwhile, we collected some known pictures of the cotton plant, without which we cannot weave the Dhaka muslin, and advertised. Later, they received some 39 samples of cotton plants, including in Gazipur District in the Kapasia subdistrict near the northern part of Dhaka, and luckily one sample’s DNA matched 96%, said Hossain. In training, we initially trained only six workers in spinning. Now we have 172 spinners and 22 pairs of weavers, said muslin revival project director Mohammad Ayub Ali. We brought workers from nearby Jamdani saree producing factories and trained them, as Jamdani is also fine cotton produced in a similar way to muslin, he said. “We set up a Dhaka muslin project near the Rupganj of Dhaka near the Shitalakshya River, where the lost muslin industry was established,” said Ali, who is also a senior official of the state-owned Bangladesh Handloom Board.
Precious muslin 'billion-dollar brand' “Huge labor and effort are needed to produce a fine Dhaka muslin woven fabric. So, it is highly-priced and the price will not be cut anytime soon. If we can introduce modern textile technology into the process, then it could help,” Hossain said. There had been 14 separate professional groups involved in producing Dhaka muslin products, including a group involved only in spinning yarn, weaving, and farming the cotton plant, and if such professional groups are set up, then the cost and efforts for muslin production would be cut, he said. “But still the manual process is highly valued and the specialty of muslin,” Hossain added, saying that “a single saree costs 360,000 takas (around $4,145).” “There is already a huge market for the Dhaka muslin across the world. We had to visit and meet people of textile industries in so many countries and they showed an interest in commercial production, claiming that the Dhaka muslin is already a billion-dollar brand.” Government officials, however, said their purpose is to ensure the complete resurrection of the Dhaka muslin. “We will appreciate any private initiative for commercial production and mass production of the cotton plant. Bangladesh has already secured geographical indication of muslin,” said Ali, referring to a sign used on products that have a specific geographical origin.
Source: Tribune
The United Arab Emirates (UAE) and Turkiye recently launched talks in Istanbul on a comprehensive economic partnership agreement (CEPA), expected to significantly boost bilateral trade. The proposed agreement will enable both sides to develop their commercial and economic relations more comprehensively and deeply, a joint press meeting was told. The agreement is aimed at removing trade barriers and promoting free movement of goods by reducing tariffs. The UAE is seeking CEPAs with several countries and has signed such pacts this year with India and Israel. Turkish trade minister Mehmet Mus and UAE minister of state for foreign trade Thani alZeyoudi addressed the joint press briefing. The proposed deal will enable both sides to achieve a bilateral trade volume of nearly $15 billion, Mus said, referring to the highest level ever recorded back in 2017, before declining as relations strained. The CEPA is expected to double bilateral trade, Al-Zeyoudi said. “By cutting tariffs, promoting free movement of goods, facilitating capital flows and reducing trade barriers, we will make it easier than ever to do business. It will also underpin a new era of cooperation,” he noted. “The United Arab Emirates is currently the largest trading partner of Turkey in the Gulf region with a bilateral trade volume of around $8 billion,” Mus said. The turnover had dropped to as much as $6.9 billion in 2018, before rebounding to nearly $7.9 billion in 2019, according to the Turkish Statistical Institute (TurkStat). The volume rose further to $8.3 billion in 2020 despite the coronavirus pandemic, before dropping slightly to $7.6 billion last year. Both the countries will become more resistant to cyclical risks and tests when the CEPA negotiations are completed as soon as possible, he said. The proposed CEPA aims at initiating new steps to stimulate trade and investment in renewable energy, financial services, entrepreneurship, advanced technology, innovation, agriculture, food security, logistical support and tourism, according to an official UAE press release. Turkey’s exports to the country had hit an all-time high of nearly $9.2 billion in 2017, compared to imports worth $5.5 billion. However, Turkey registered a trade deficit in the following years, before it reversed the trend again last year. Its exports had totaled $3.14 billion, $3.52 billion and $2.72 billion in 2018, 2019 and 2020, respectively, versus imports of $3.78 billion, $4.34 billion and $5.57 billion, according to the data. Turkey exported around $5.2 billion worth of goods to the UAE last year and bought nearly $2.4 billion worth of products from the country.
Source: Fibre2Fashion
Wellington City Council started a trial this week using textiles as a performance additive in asphalt on our roads – a first for New Zealand. The Council-led trial, in partnership with Usedfully®, Scion and Fulton Hogan, is designed to create a circular economy system to reuse the untapped resource of unwanted clothing and textiles, onshore in Aotearoa. Textile waste is one of New Zealand’s fastest growing waste streams, their outsized impact relative to weight make them an ideal focus for carbon reduction activities. Improving the performance of our roads, creating jobs and economic opportunity onshore while also reducing waste and emissions is a win-win-win scenario, says Mayor Andy Foster. “We’re supporting organisations, projects and initiatives that reflect a circular economy as part of our Te Atakura – First to Zero goal and our strong ambition to reduce our collective footprint on the planet. “This trial is a perfect example of cross collaboration and stewardship focused on improving sustainability for future generations. “We’re proud to support Usedfully in this leading-edge work, which we hope will have applications to make a difference across New Zealand and then globally.” Leading the co-design and building of a national circular economy for clothing and textiles in Aotearoa, Usedfully began working with Scion exploring potential applications for waste textile fibre in New Zealand quickly sparking industry interest and funding. Cellulose is currently imported for use as an additive in asphalt roading mix to stabilise it, improve its workability, homogeneity and the strength of the final road. Meanwhile, we have an estimated 220,000 tonnes of potential fibre in the form of textiles going to landfill in New Zealand every year. The Terrace between Ghuznee and Buller Streets will be the first section of road trialled with the new product. It’ll be laid with 'Strength-Tex’ which incorporates 500kgs (half a tonne) of used textiles, conserving approximately 11,725kgs C02e (carbon equivalent) and 568,500 litres H20 (water). Reusing the fibres in roading will boost the roading industries resilience by reducing the country’s reliance on imported products and improve the performance of our roads. Diverting New Zealand’s textile from landfills could result in potential greenhouse gas emissions reduction of 400,000 t CO2e a year. “Strength-Tex is the first of a number of industrial scale solutions we have developed from unwanted textiles,” says Peter Thompson CEO of Usedfully. “It not only provides a fit for purpose product for our roads and construction industry, it also supports organisations to take action on climate change by diverting their unwanted textiles from waste into local, real-world solutions. “The success of this initiative is down to the expertise and enthusiasm of each of the partners involved, and also thanks to the support of Waka Kotahi and the Ministry for the Environment." This unique cross sector collaboration is accelerating New Zealand’s transition to a lowcarbon, circular economy, says Councillor Laurie Foon. “We are hearing more and more about the circular economy and how it is a crucial component in future sustainability and protecting the environment, and our residents are demanding this sort of action from us and Central Government. “The circular economy model lengthens the timeframe of products by reusing them, repurposing them, and building on their lifecycle. This trial ticks all those boxes, and we look forward to hearing the results, and this innovative approach becoming the norm not an anomaly.” Organisations wanting to connect their unwanted textiles and clothing with these solutions can order a textile audit with Usedfully or become a partner in the Textile Reuse Programme.
Source: Scoop
Prevailing growth models are not up to pulling economies through unanticipated negative shocks. They have also failed to maintain a decent level of inclusive growth during periods of less stress. The International Monetary Fund’s revised World Economic Outlook (WEO) is sobering. It is rare for the organisation to revise down sharply its projections for economic growth just one quarter into the calendar year. Yet in this case, it has done so for 86% of its 190 member countries, resulting in a decline of almost one percentage point in global growth for 2022—from 4.4% to 3.6%. Moreover, this forecast is accompanied by a significant increase in projected inflation, and all this bad news is packaged in a wrapping of deeper uncertainty. There is a downward bias in the balance of risks, and inequality is expected to worsen both within and across countries. The WEO revision is attracting a great deal of media attention. The focus, understandably, is on the relatively large size of the revisions for the current year, most of which are associated with the detrimental economic effects of Russia’s invasion of Ukraine. The war has disrupted the supply of corn, gas, metals, oil, and wheat, as well as pushing up the price of critical inputs such as fertiliser (which is made from natural gas). These developments have prompted warnings of a looming global food crisis and a severe increase in world hunger. Given the scale of the disruptions, it would not surprise me if the IMF issued a further downward revision to its growth projections—particularly for Europe—later this year. But as important as these 2022 effects are, especially when it comes to the impact on vulnerable segments of the population and fragile countries, we also must pay attention to the IMF’s 2023 outlook. The projection for next year points to a medium-term problem that is no less important—the lost potency of growth models worldwide. The IMF does not expect its significant downward revision in global economic growth for 2022 to be offset in 2023. Instead, it has lowered its forecast for next year from 3.8% to 3.6%, with those revisions applying to both advanced and developing economies. The implication is that the world’s economic engines are sputtering. This problem is especially worrisome in such a fluid operating environment, because it means that the prevailing growth models are not up to the task of pulling economies through unanticipated negative shocks. Making matters worse, the same models have also failed to maintain a decent level of inclusive growth during periods of less stress. Three major secular developments are to blame for the tepid outlook: the changing nature of globalisation; the prolonged reliance on artificial growth boosters; and the long-term failure to invest in the sources of sustained growth. Economic and financial globalisation have been evolving in ways that make it more difficult for national economies to leverage international trade and foreign direct investment for domestic growth. While the pandemic raised questions about the proliferation and potential vulnerabilities of “just-in-time” cross-border supply chains, it is worth recalling that trade and investment restrictions were increasing well before Covid-19 emerged. The US-China trade war featured the return of high tariffs and other protectionist measures that have generated far-reaching knock-on effects throughout the global economy. Moreover, these developments have come at a time when many countries face tighter policy constraints. A return to conventional and unconventional monetary-policy stimulus is now precluded by high and persistent inflation. As the IMF notes, this new environment confronts central banks with very delicate and problematic policy tradeoffs, and it exposes the real economy to the potential vagaries of financial-market volatility. Although the scope for fiscal action is less limited than it is for monetary measures, it is not well distributed among countries. While governments should use the firepower they have to protect the most vulnerable segments of their populations, some already face troubling debt levels. These developments coincide with a period of low productivity growth in many countries, which is a function of past and persistent failures to invest in the drivers of genuine growth, including physical infrastructure and human capital. The IMF’s report offers an important reminder to policymakers that they need to focus much more attention on generating innovation, improving productivity, and strengthening the other drivers of robust, inclusive economic growth. Failure to do so will make the risk of medium-term growth stagnation uncomfortably high. In a world that is already subject to considerable climate, economic, financial, institutional, political, and social challenges, that is not a scenario we can afford. The writer is President, Queens’ College, University of Cambridge, and professor, Wharton School, University of Pennsylvania.
Source: Financial Express
