According to KOTRA, the information on trade was disclosed by the Ambassador of the Republic of Korea to India Chang Jae-bok while inaugurating the 4th edition of Korea Fair in India (KFI) 2022 in New Delhi on Wednesday. KOTRA is the economic division of the Embassy of the Republic of Korea in India. The bilateral trade between India and Korea grew 40 per cent to USD 23.7 billion in 2021, according to Korea Trade-Investment Promotion Agency (KOTRA). In 2020, the value of bilateral trade between the two countries was at USD 16.9 billion. KOTRA is the economic division of the Embassy ofthe Republic of Korea in India. According to KOTRA, the information on trade was disclosed by the Ambassador of the Republic of Korea to India Chang Jae-bok while inaugurating the 4th edition of Korea Fair in India (KFI) 2022 in New Delhi on Wednesday. "Korea and India have a strong economic partnership and that is rapidly expanding. Bilateral trade between the two countries reached USD 23.7 billion in 2021. This was the highest-ever trade volume between the two countries, a 40 per cent increase over USD 16.9 billion (in 2020)," KOTRA said in a statement on Thursday quoting the ambassador. As per KOTRA, Korea made record imports of USD 8.06 billion from India in 2021. During the year, all major imported items from India including iron ore (215.5 per cent) and aluminum (143.6 per cent) imports have shown a significant increase.
Source: Economic Times
India has achieved monthly value of merchandise export in May 2022 amounting USD 37.29 billion, an increase of 15.46% over USD 32.30 billion in May 2021. India’s merchandise export in April -May 2022-23 was USD 77.08 billion with an increase of 22.26% over USD 63.05 billion in April -May 2021-22. Value of non-petroleum exports in May 2022 was 29.18 USD billion, registering a positive growth of 8.13% over non-petroleum exports of USD 26.99 billion in May 2021. The cumulative value of non-petroleum exports in April -May 2022-23 was USD 61.09 billion, an increase of 12.9% over USD 54.11 billion in April -May 2021-22. Value of non-petroleum and non-gems and jewellery exports in May 2022 was USD 26.08 billion, registering a positive growth of 8.57% over non-petroleum and non-gems and jewellery exports of USD 24.02 billion in May 2021. The cumulative value of nonpetroleum and non-gems and jewellery exports in April -May 2022-23 was USD 54.52 billion, an increase of 14.15% over cumulative value of non-petroleum and non-gems and jewellery exports of USD 47.76 billion in April -May 2021-22. Petroleum products (52.71%), Electronic goods (41.46%) and RMG of all Textiles (22.94%) led the way in high increase in exports during May 2022. India’s merchandise import in May 2022 was USD 60.62 billion, an increase of 56.14% over USD 38.83 billion in May 2021. India’s merchandise imports in April -May 2022-23 was USD 120.81 billion with an increase of 42.35% over USD 84.87 billion in April -May 2021-22. Value of non-petroleum imports was USD 42.48 billion in May 2022 with a positive growth of 44.7% over non-petroleum imports of USD 29.36 billion in May 2021. The cumulative value of non-petroleum imports in April -May 2022-23 was USD 82.55 billion, showing an increase of 27.72% compared to non-oil imports of USD 64.63 billion in April -May 2021-22. Value of non-oil, non-GJ (gold, silver & Precious metals) imports was USD 33.61 billion in May 2022 with a positive growth of 27.2% over non-oil and non-GJ imports of USD 26.42 billion in May 2021. Non-oil, non-GJ (Gold, Silver & Precious Metals) imports in April -May 2022-23 was USD 69.25 billion, recording a positive growth of 30.71%, as compared to non-oil and non-GJ imports of USD 52.97 billion in April -May 2021- 22. The trade deficit in May 2022 was USD 23.33 billion, while it was 43.73 billion USD during April -May 2022-23.
Source: PIB
“This still translates into a real GDP growth at 7.5% for FY23,” SBI economists said in a report. The Indian economy may grow by 7.5% in the current financial year, 20 basis points more than an earlier estimate, SBI economists said on Thursday. India’s economy grew by 8.7% to Rs 147 trillion in FY22 with incremental addition of Rs 11.8 trillion in real terms during the year. “Given the high inflation and the subsequent upcoming rate hikes, we believe that real GDP will incrementally increase by Rs 11.1 trillion in FY23. “This still translates into a real GDP growth at 7.5% for FY23,” SBI economists said in a report. Nominal GDP for FY22 expanded by Rs 38.6 trillion to Rs 237 trillion, a year-on-year growth of whopping 19.5%. “For FY23 also, as inflation remains elevated in first half, our projection is that nominal GDP will grow by 16.1% to Rs 275 trillion,” they said. The economists said at $120/bbl, crude oil still poses significant uncertainties regarding inflation trajectory. “We, however, now believe that inflation will average 6.5-6.7% in FY23 on the back of excise rate cuts by the government,” they said. “We expect RBI also to be supportive of growth and hike repo rates gradually, but mostly frontload it in June and August policy.” Specifically, core liquidity in the banking system has declined from Rs 8.3 trillion in the beginning of the year to Rs 6.8 trillion. Net liquidity adjustment facility (LAF) absorption has declined from Rs 7.5 trillion to Rs 3.3 trillion during the same period. “We now expect a 50 basis point repo rate hike and 25 basis point CRR hike in forthcoming June policy. “RBI is likely to raise the repo rate cumulatively by 125-150 basis points over the pandemic level at 4%. “RBI might also increase the CRR rate cumulatively by another 50 bps, after raising it by 50 bps in the last monetary policy,” the economists said. In FY22, around 2,000 corporates, in listed space, reported 29% growth in top line and 52% growth in profit after tax (PAT) as compared to previous year. Both construction and steel sector reported growth of 45% and 53%, respectively in revenue in FY22 as compared to FY21. Interestingly, order book position remains strong, with construction major L&T reporting 9% growth in order book position at Rs 3.6 trillion as on March 2022, supported by 10% growth in order inflow of Rs 1.9 trillion in FY22 as compared to Rs 1.7 trillion in FY21, the economists said. The sector-wise data for April indicate that credit off-take has happened in almost all sectors. Customers, especially in retail verticals could be having a feel of future run expected in interest rates, and might be front loading their purchases in days to come, giving a fillip to consumer demands in select niche areas, they added.
Source: Financial Express
The apparel industry would like to reiterate its request for immediate measures to control the cotton yarn prices which has increased to an extent of 125 per cent in the past 18 months, AEPC Chairman Narendra Goenka said. The garmentindustry will make all efforts to achieve the export target of USD 20 billion in this fiscal, Apparel Export Promotion Council (AEPC) said on Thursday. AEPC Chairman Narendra Goenka requested the government to calibrate cotton yarn exports and reduce the export benefit on cotton and cotton yarn exports from India, on an immediate basis. The apparel industry would like to reiterate its request for immediate measures to control the cotton yarn prices which has increased to an extent of 125 per cent in the past 18 months, he said. "We request the government to intermittently impose a ban on cotton exports for a few months to ensure availability to the industry as an immediate measure," he added. He also said that the formation of a Textile Advisory Group by the government will act as an active interface between different stakeholders in the textiles value chain, besides alarming and mitigating the crisis like raw material storage, increasing productivity and containing inflation. "This is another stepping stone towards helping the industry, we are sure this step will be instrumental in bridging the gap between production and consumption of cotton and ensure raw material security in the long run," Goenka said. Appreciating the government's move to mitigate the crisis through Textiles Advisory Group, AEPC Chairman said the body will look at the issues linked to productivity be it good quality seeds, introducing the new varieties, crop insurance to farmers and use of technology in farm optimisation and produce management, water availability, arability for the crop.
Source: Economic Times
China eased Covid restrictions in Shanghai after two months of lockdown on Tuesday, but the country's "zero Covid" policy continues and nearly 650,000 will remain confined to their homes. New garment buyers from the Czech Republic, Egypt, Greece, Jordan, Mexico, Spain, Turkey, Panama and South Africa among others have started negotiating with Indian companies to replace purchases from China. The extended Covid lockdowns in China have restricted supplies, forcing buyers to look for other options to diversify risks. "Sotoreves SL, a Spanish garment company, wants 1 lakh pieces of tie and dye and printed shirts. Negotiations have started with them," said Lalit Thukral, president of Noida Apparel Export Cluster. Another buyer from South Africa, Lizzard Pty, which has 180 stores, wants to buy women's clothing, he said, while a buyer from Greece wants men's garments. The Noida Apparel Export Cluster has 3,000 units with an annual turnover of ₹35,000 crore and employs around 9,00,000 people. China eased Covid restrictions in Shanghai after two months of lockdown on Tuesday, but the country's "zero Covid" policy continues and nearly 650,000 will remain confined to their homes. The buyers still see uncertainty in China," Thukral said. The entry of new buyers at Noida export cluster has also raised hopes for the Tirupur garment manufacturers. "We are the largest manufacturer of knitwear apparel in India. If they come to Noida, they will also come to us," said Raja Shanmugam, president, Tirupur Exporters Association (TEA). "The only concern is the rising cotton prices, which may impact delivery of goods within the stipulated time frame." India recorded its highest-ever textiles and apparel exports in FY22 at $44.4 billion, a rise of 41% compared to FY21. The USA was the top export destination for the country's textiles and apparel shipments accounting for 27% share, followed by the European Union (18%), Bangladesh (12%) and UAE (6%). Export of ready-made garments stood at $16 billion showing a growth of 31% over FY21. However, the high cotton prices are dampening the export opportunity that has opened up for Indian manufacturers. Narendra Goenka, chairman, Apparel Export Promotion Council said, "China plus one strategy would have worked much better had the cotton and yarn prices would have been less."
Source: Economic Times
The 10-year-old company, promoted by four former executives from the industry, with their own funds and bank loans, ended the year 2021-22 with revenues of Rs 103 crore. With rapid expansion pan-India, the company hopes to end the current fiscal year with about Rs 200 crore in revenues, chief operating officer Ramanath Bhat told a media conference. Bengaluru-based mattress brand Repose on Thursday announced it is setting up a manufacturing plant at Bhubaneshwar in Odisha in the next two months. This will be the company’s fourth unit after those in Coimbatore in Tamil Nadu, Pune in Maharashtra, and Meerut in Uttar Pradesh. The 10-year-old company, promoted by four former executives from the industry, with their own funds and bank loans, ended the year 2021-22 with revenues of Rs 103 crore. With rapid expansion pan-India, the company hopes to end the current fiscal year with about Rs 200 crore in revenues, chief operating officer Ramanath Bhat told a media conference. The company has launched two variants of mattresses it has manufactured using the Japanese smartgrid technology for off-line sales. With a dealer network of about 1,500, the company has 50 plus product categories priced between Rs 5000 and Rs 1.97 lakh, chief marketing officer Balaji V said. The company has also signed up with actor Prabhu Deva to be its brand ambassador. Ravi Pandith, vice president (sales & business development), said they were now expanding into Delhi, Punjab, and Haryana with 200 more dealers, adding that they have a strong presence in south and western India.
Source: Fibre2 Fashion
The manufacturing costs of different textile products in the primary textile industry have been broken down into various cost elements at each stage of the textile value chain, according to a new report published by the International Textile Manufacturers Federation (ITMF). The federation published the new edition of International Production Cost Comparison (IPCC). The 2021 edition added Central America and Mexico to the historical cost analysis in Bangladesh, Brazil, China, Egypt, India, Indonesia, Italy, Korea Rep., Pakistan, Turkey, US, and Vietnam. Cost factors, manufacturing costs and total production costs are available for different textile products in the segments of spinning, draw texturing, weaving, knitting, and finishing. The publication has revealed that producing one metre of woven fabric from cotton 1-1/8" in a continuous open width process (COW) cost $1.36/m on average in 2021 (range between $1.11/m in India and $1.91/m in Italy). Spinning the yarn needed to produce this metre of a finished woven fabric costs 19 per cent of the fabrics’ total production cost on average worldwide (range between 15 per cent in Korea, Rep. and 22 per cent in Central America). Weaving this yarn adds an extra 19 percentage points (pp) on average to the total production cost of the fabric (range between 14 pp in Egypt and 26 pp in Italy). Finally, finishing this metre of woven fabric increases the final production cost by 31 pp (range between 26pp in Egypt and 33pp in the US, Turkey and India). The study has further revealed that the average cost of raw materials needed to produce this metre of woven fabric was 31 per cent of the fabric’s production cost. It was relatively cheaper in Italy (22 per cent) and most expensive in Egypt (40 per cent). The publication also showed that Mexico and Central America are comparatively more dependent on energy cost for spinning NE/30 yarn then the other countries in the panel. The cost of power represents 28 per cent and 25 per cent of manufacturing costs in both countries, respectively. In contrast, the US and Egypt benefit from relatively low energy costs (10 per cent and 11 per cent of manufacturing costs, respectively). Dependency on labour costs is very high in Italy and the US with shares of 40 per cent and 38 per cent of manufacturing costs. This cost element represents only 2-3 per cent of total manufacturing costs in India, Pakistan, Bangladesh, and Egypt. Spinners of NE/30 yarn in Egypt, Central America and Pakistan further face high capital cost (over 40 per cent of their manufacturing costs). The cost of capital is much lower in Italy and Korea, Rep., where it reached 21 per cent in 2021.
Source: Fibre2 Fashion
Delight Group and Delight Health and Wellness Foundation are taking a leadership role by partnering with Good Earth Cotton and conducting the research and development to learn and adapt the programme and principles in India. The Australian developed programme elevates the role of the grower, ensuring full participation in the future of the textile industry. Good Earth Cotton is the world’s first climate positive, traceable cotton - a modern regenerative farming programme that delivers land restoration, enhanced soil and pasture biodiversity, water use efficiency, chemistry and synthetic amendment reduction, and presents farmers with additional value for their fibre. Delight Group is one of India’s leading organic agricultural cultivators and traders - working from farm, to gin, through to spinning in the cotton sector. 1977 Indian cotton farms, spanning 3,689 hectares of land, commenced the journey of converting to Good Earth Cotton. The farmers have commenced this cropping season (MY 2021/2022) by digital mapping, soil sampling, data collection and GPS tagging to build a base analysis from which the Good Earth Cotton programme and principles will be reviewed and adapted to bring climate positive improvements to a smallholder farming system and Indian climatic conditions. This programme represents a first of its kind in India, where primary and site specific scientific data is captured at scale and verified across participating growers. Following this season, soil sampling and data collection will continue next year and each year thereafter to review the progress toward regenerative cotton and climate positivity. It is anticipated that it will take three years (cropping seasons) for these growers to fully adopt the Good Earth Cotton programme, the company said in a press release. “Delight Group has been built on the values of respect for people and planet, when we learnt about the progress being made by Danielle and David Statham on the Good Earth Cotton programme in Australia and realised a strong sense of shared values, we were eager to lead the research and development necessary in India to adapt practice change and result not only in climate positive outcomes, but also provide Indian farmers an opportunity to enhance their yield and livelihoods - this program ensures growers are full participants and beneficiaries of a better cotton industry and healthier planet,” Abhishek Doshi, chief executive officer of Delight Group, said. “We have spent over 10 years on our properties in Australia investing in agronomy, carbon science, and ongoing research and development to deliver the Good Earth Cotton programme - we are so grateful to have had the opportunity to connect with Abhishek and the Delight Group team and share a common ground on wanting to improve the climate positive and transparent outcomes of the global cotton industry - being able to share our research, development, knowledge, skill and practices across the global is phenomenal,” Danielle Statham, co-founder of Good Earth Cotton, said. Importantly, Good Earth Cotton is backed by the power of FibreTrace for complete transparency and real-time verification throughout the global supply chain. With the challenges facing the global cotton industry at present, from forced labour claims to queries around certification integrity, it is essential that any new cotton programmes are backed with primary data and traceability. FibreTrace is an advanced transparency technology that connects physical markers with digital technology, providing brands and suppliers 20/20 vision of their supply chain at every step. FibreTrace allows growers to provide their brands, retailers, and consumers with a trusted guarantee that the cotton picked from their farm is 100 per cent the same cotton that ends up in the final garment. Instead of verifying a chain of custody model that digitalises a paper system, FibreTrace combines physical and digital traceability to ensure the physical input can constantly be verified against the digital blockchain, at every step of the global supply chain. Patented FibreTrace luminescent pigments are applied to the cotton during the ginning process and audited for integrity, and quantification, as they move throughout the global supply chain. Delight Group will not only use FibreTrace to verify and trace the Good Earth Cotton production in India when ready, but as of late 2022 will be introducing FibreTrace across certified Indian Organic cotton (organic premium, IC2 and NPOp). It is forecasted that in 2023 across participating Australian and Indian farms +200,000 bales of Good Earth Cotton will be produced, enough to create an estimated 160 million garments.
Source: Fibre2 Fashion
An invaluable opportunity for business and networking will be available later this year when Yarn Expo Autumn will return from August 29-31, 2022 at the National Exhibition and Convention Centre in Shanghai. Notably, sustainable and functional materials will be one of the highlights at the fairground against a backdrop of strong market demand. This year’s fair will maintain its position as a leading trading platform in Asia for the fibres and yarn industry, showcasing the latest advancements and providing fairgoers with a comprehensive outlook on market trends, the fair organisers said in a press release. Among all yarn and fabric innovations, sustainable and functional products will undoubtedly continue to be a key market theme this year. A 2021 report on Chinese consumer behaviour states that 89 per cent of respondents intended to buy sustainable products moving forward. Meanwhile, a recent study by Research and Markets showed that the market size for China’s functional apparel is projected to reach $52.5 billion by 2026 with a CAGR of 7.3 per cent. As a result, visitors will find a diverse range of dedicated materials at this year’s Yarn Expo Autumn, including recycled polyester filament yarns, recycled polyester colour yarns, recycled functional yarns, thermo regulating and anti-bacterial fibres and yarns and more. Discussing the fair’s advantages, Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd, said, “Yarn Expo is not only an effective platform for showcasing textile innovations and accommodating different sourcing needs, but it’s also a muchneeded trade fair for industry players to gather updates on market trends as well as exchange insights. Throughout the pandemic, the fair has continued to drive industry growth, providing a reliable source of business facilitation for the sector. We are very pleased that the autumn edition will be held this August and look forward to the valuable communication opportunities with participants from the entire textile value chain.” “China’s latest Five-Year Plan has boosted the demand for high quality and sustainable products, which help promote our US cotton. There are high volumes of inquiries about organic imports as well as product origin and sustainability,” Shaoping Li, senior manager at Cotton Council International, said. “We bought a number of anti-bacterial products to the fair. We connected with many visitors and the turnout was higher than I expected. I think environmental protection, sustainability, functionality and antibacterial aspects will be the key trends in the textile industry for the foreseeable future,” said Kent Wang, sales director of Shanghai Xinya New Material Technology Co Ltd. The last edition of Yarn Expo Autumn welcomed 429 exhibitors from seven countries and regions, as well as over 13,000 decision makers who were sourcing in person. Continuing this success, the 2022 autumn fair will once again be held concurrently with Intertextile Shanghai Apparel Fabrics – Autumn Edition, Intertextile Shanghai Home Textiles – Spring Edition, PH Value and CHIC. Covering the entire textile supply chain, the fairs will create synergy effects to drive these industries forward. Yarn Expo Autumn is organised by Messe Frankfurt (HK) Ltd and the Sub-Council of Textile Industry, CCPIT.
Source: Fibre2 Fashion
Bullish on the prospects for the export apparel sector, Browns Group is investing Rs. 15.3 billion to put up the country’s most modern and the largest textiles plant in the Kurunegala District. The Board of Investment (BOI) agreement to this effect was signed recently between Brown and Company PLC Group CEO T. Sanakan and BOI Director General Renuka Weerakone. Sanakan, along with new Project Division Heads Dulip Samaraweera and Charitha Jayasingha has taken the initiative to save extensive outflow foreign exchange on the import of much needed fabrics for the apparel manufacturing industry for exports. The Project is driven with the expertise of Prithiv Dorai and Kenneth Wijesuriya, who have a vast knowledge in textile manufacturing industry. Currently Sri Lanka’s apparel and textile industry is the leading income generator in foreign exchange amounting to $ 5 billion dollars of which almost $ 3 billion is spent annually on import of raw materials. Brown and Company said the project will be established in Mahakandura, bringing in employment to approximately 800 persons in the Kurunegala District. The plant will embrace the green concept in textile manufacturing with modern state of art machinery with very latest in technology.
Source: Financial Times
