This has been a "momentous year" for India-US trade and economic relations, New Delhi's top diplomat here said Thursday, underlining the "enormous" potential of the economic partnership between the two countries. India's Ambassador to the US Taranjit Singh Sandhu said, "Last year we did hit a historic high of more than US$160 billion in India-US bilateral trade. Do keep in mind that we were able to achieve this during the pandemic without any formal trade agreement and despite supply chain disruptions. "He was speaking at a reception organised for a business delegation from the Fairfax County of Virginia, which has a strong relationship with India. "This has been a momentous year for India-US trade and economic relations. "Among those who attended the reception were Secretary of Commerce and Trade of Virginia, Caren Merrick; Secretary of Agriculture and Forestry, Matthew Lohr; CEO of the Fairfax County Economic Development Authority (FCEDA), Victor Hoskins and Vice President of International Trade of the Virginia Economic Development Partnership, Stephanie Agee. The two-way investments also remain equally robust, said the Ambassador. "With 200 Indian companies present in the United States and more than 2000 US Companies in India, the potential of the economic partnership between our countries is an enormous one," he said. India-Virginia trade stood at USD 1.65 billion in 2019 and is estimated to have grown by over 15 percent since then, he said. India's exports to Virginia stood at USD 644.44 million and imports from Virginia stood at USD 1.01 billion. Top items of exports from Virginia to India are -- minerals and ores; waste and scrap; chemicals; computer and electronic products; and petroleum & coal products. Top items of exports from India to Virginia are: Textile mill products; chemicals; apparel manufacturing products; transportation equipment; and electrical equipment, appliances and components. "I understand Virginia will be sending a trade mission to India early next year. We will be happy to make the visit productive and fruitful," Sandhu said at the reception which he hosted at the India House."While there is much that has been done to capitalize on our economic partnership there is much that can still be done in the days ahead. Governments cannot do it alone. We look forward to our friends from Virginia, the FCEDA and the industry here to be partners in our journey ahead," he said. Sandhu said that "tech" is the key to the future of India-US relations, and perhaps even the future of the planet. To me, it is the most exciting, the most topical, where most of you here have your expertise. It is also closely related to another important T', which is Talent. Both India and the US are societies that value innovation and ingenuity. Every sector today is affected by technology. No one is immune. The pandemic has only fast-tracked some of these changes which would have otherwise probably taken decades, he said. This is where Virginia becomes important, he said. Virginia is where many say the internet was invented. You know this craft better than anyone else perhaps! And what a journey it has been for the world since then! he added. At the recent bilateral Summit between Prime Minister Narendra Modi and President Joe Biden in Tokyo, India and the US launched the initiative for critical and emerging technologies (iCET) -- from AI to quantum, biotech, internet of things and 5G/advanced telecommunications, Sandhu said. In each of these areas, there are vulnerabilities as also opportunities. What is interesting about this initiative is two aspects: one, it is led by the respective National Security Council on both sides. Two, it brings together all stakeholders on board beyond the Governments- academia, industry etc, he said. The second important development in the tech field is under Quad: There is a huge amount of work going on in ORAN, semiconductors, standards, biotechnology, and quantum technologies etc. under Quad framework, he said. At the recent Summit in Tokyo, leaders decided to convene a business and investment forum for networking with industry partners to expand capital for critical and emerging technologies, Sandhu said.
Source: Business Standard
Shri Som Parkash, Minister of State for Commerce & Industry, today said the PM Gati Shakti National Masterplan will help achieve India’s aim of USD 5 Trillion economy. Addressing the Industry Stakeholders at the INDIA INTERNATIONAL LOGISTICS & SUPPLY CHAIN Conference, organised by PHDCCI, Shri Som Parkash, said India is one of the most attractive destinations for investment in the world and government has prepared some important frameworks to help thrive businesses in the country. One of them is PM Gati Shakti masterplan and its implementation, which will help us to achieve our aim in logistic efficiency. An infrastructure master plan will make a difference through integrated approach by breaking the entrenched silos over six years, which has received Rs 20,000 crore allocation in this year’s Budget. Propelled by seven engines – roads, railways, airports, ports, mass transport, waterways and logistics – PM Gati Shakti is an idea whose time has come, added the Minister. The Minister appreciated PHDCCI for being the forerunner in having a specalised forum for Gati Shakti, the contribution for which will go long way in alligning the objectives with the PM's Vision of being a globally leading economy. To help make this plan success, the Minister urged all industry stakeholders to work in this direction collectively to achieve its significant results.
Source: PIB
The foreign minister said there were detailed and forward looking discussions on economic and trade aspects, adding that Indo-Iranian trade was centuries old India and Iran have "surveyed" the possibilities of settling trade transactions in rupee or through barter system, along with discussing a need to establish a banking mechanism, foreign minister of the Middle Eastern country, Hossein Amir-Abdollahian, said on Thursday. New Delhi and Tehran have also agreed to "precipitate" investment in the Chabahar Port which is being developed with the help of India, the visiting minister said."Yesterday, we discussed with Indian high officials as a special need with my colleague the external (affairs) minister on the need to establish a banking mechanism," Abdollahian said at an event organised by the World Trade Centre here. The two sides "surveyed" the possibility of trade in local currency, including rupee, or otherwise barter, he added. He said there are existing mechanisms within the framework of international law which can help in reviving the "banking and financial interaction", pointing out that Tehran has implemented such a mechanism with a dozen countries already. Abdollahian, who is on a three-day visit to India, addressed industry representatives in the financial capital. His arrival was delayed due to another round of meeting with Indian Minister for External Affairs S Jaishankar on Thursday morning, as per organisers. "As we speak, we've in mind recognised legal mechanisms that can be conducive for development of trade between India and Iran," the Iranian foreign minister said. There are "ample opportunities" for India and Iran irrespective of the "unilateral sanctions" imposed by the US, which will not last for long, he added.
Abdollahian, who met Prime Minister Narendra Modi and National Security Advisor Ajit Doval on Wednesday, said New Delhi and Tehran have agreed to "delineate a long term roadmap". He further said Modi is "way forward" on such thinking about a long-term partnership, and stressed during the meeting that both the countries are already implementing the roadmap even before formalising it. The foreign minister said there were detailed and forward looking discussions on economic and trade aspects, adding that Indo-Iranian trade was centuries old. He also said Chabahar Port is a very reliable infrastructure asset and added that it is already functional with help from Indian investment. "We agreed to precipitate the investment in this port," he said, adding that discussions were also held on energy. A "special heed" was paid to the capacities in oil, petroleum and gas that exists within Iran, he said. Iran has kept the domestic trade routes across the country ready and active to help the cause of trade, especially amid the war triggered by Russian invasion of Ukraine, he added
Source: Business Standard
The country's current account deficit is likely to hit a three-year high of 1.8 per cent or USD 43.81 billion in FY22, as against a surplus of 0.9 per cent or USD 23.91 billion in FY21, a report said on Thursday. According to an assessment by India Ratings, the Current Account Deficit (CAD) has moderated to USD 17.3 billion or 1.96 per cent of GDP in the fourth quarter of FY22 as against USD 8.2 billion or 1.03 per cent in the year-ago period, and massively down from USD 23.02 billion or 2.74 per cent in Q3, which was a 13-quarter high. The improvement in the key numbers are due to the remarkable improvement in merchandise exports in FY22, when it grew 42.4 per cent as against a negative 7.5 per cent in the pandemic-hit FY121. But exports could face significant headwinds from rising uncertainty and volatility in the global economy primarily because of the spike in commodity prices, especially crude oil after Russia invaded Ukraine, the report warned, and pointed to the lower forecast of global growth by the World Trade Organisation (WTO) which sees the global economy clipping at just about 3 per cent in 2022, down from 4.7 per cent forecast earlier. The world trade body has pegged the import growth for India's key exporting partners such as North America and Europe at 3.9 per cent and 3.7 per cent, respectively, in 2022, lower than 4.5 per cent and 6.8 per cent, respectively, forecast earlier. However, higher oil prices will benefit oil exporting countries such as Saudi Arabia, which will lead to higher real incomes, and thus, higher import demand which is expected to increase by 11.7 per cent in 2022 from 8.7 per cent forecast earlier. On the other hand, India's merchandise imports are expected to accelerate on the back of escalated commodity prices and rupee depreciation in FY23. The agency expects merchandise exports to come in at USD 112.5 billion, growing by 17.7 per cent in the first quarter of FY23, up 85.7 per cent over the same quarter last fiscal. Merchandise imports grew 44.1 per cent during April-May 2022 to USD 120.9 billion and are expected to stand at USD 182.9 billion. Moreover, the rupee is expected to average at 77.1 against a US dollar in Q1, down 4.5 per cent over Q1 FY22. Notwithstanding the high base effect of Q4 of FY21, up 20.4 per cent, merchandise exports in Q4 of FY22 grew 29.2 per cent to a record USD 116.8 billion. Import volumes of top exporting partners such as the US and Europe rose 9.7 per cent and 8.3 per cent, respectively, in Q4. As a result, overall exports crossed the USD 400- billion target, scaling a life-time high of USD 421.8 billion in FY22, up from USD 296.3 billion in FY21, a growth of 42.4 per cent, as against a negative 7.5 per cent in FY21. FY23 so far has been encouraging as exports grew 22.9 per cent in April-May. But if the Ukraine war lingers on, which can lead to stagflation in the developed world and continued supply chain disruptions, can hit exports, the report warned. Key commodities such as petroleum products, iron & steel, aluminium & its products, pearls, precious and semi-precious stones, sugar, motor vehicles and cotton yarn contributed roughly 72.2 per cent to exports growth, growing in the range of 14-158 per cent in value terms in Q4. Gold imports declined 54 per cent in Q4 after seven quarters as demand fell by the same level in the quarter due to the onset of the third wave of the pandemic. Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. We, however, have a request. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. The country's current account deficit is likely to hit a three-year high of 1.8 per cent or USD 43.81 billion in FY22, as against a surplus of 0.9 per cent or USD 23.91 billion in FY21, a report said.
Source: Business Standard
India jumped one position to 7th among the top recipients of foreign direct investment (FDI) in the last calendar year (2021) despite FDI inflows into the country declining, according to the United Nations Conference on Trade and Development (UNCTAD). In its latest World Investment Report released on Thursday, UNCTAD said FDI inflows into India declined to $45 billion in 2021 from $64 billion in the preceding year. While the United States ($367 billion) remained the top recipient of FDI, China ($181 billion) and Hong Kong ($141 billion) also retained second and third position respectively. Among the top 10 host economies, only India saw a decline in its inflows. However, outward FDI from India rose 43 per cent to $15.5 billion in 2021. “Flows into India declined to $45 billion. However, a flurry of new international projects were announced. The largest number of projects (23) was in renewables. Large projects include the construction in India of a steel and cement plant for $13.5 billion by ArcelorMittal--Nippon Steel (Japan) and the construction of a said global FDI flows recovered to pre-pandemic levels last year, growing 64 per cent to $1.6 trillion but the prospects this year are grim. “This year the business and investment climate has changed dramatically as the war in Ukraine results in a triple crisis of high food and fuel prices and tighter financing. Other factors clouding the FDI horizon include renewed pandemic impacts, the likelihood of more interest rate rises in major economies, negative sentiment in financial markets and a potential recession,” it said. Despite high profits, investment by multinational companies in new overseas projects were still one-fifth below pre-pandemic levels and for developing countries, the value of greenfield announcements stayed flat, the report said. "UNCTAD foresees that the growth momentum cannot be sustained and that global FDI flows in 2022 will likely move on a downward trajectory, at best, remaining flat. However, even if flows remain relatively stable in value terms, new project activity is likely to suffer more from investor uncertainty," it added. While the recovery benefitted all regions, almost three-quarters of the growth was concentrated in developed economies as FDI flows rose 134 per cent and multinational companies posted record profits. “Flows to developing economies rose 30 per cent to $837 billion — the highest level ever recorded — largely due to strength in Asia, a partial recovery in Latin America and the Caribbean and an upswing in Africa. The share of developing countries in global flows remained just above 50 per cent,” the report said. UNCTAD said multinational enterprises of the United States targeted India in 8 per cent of deals, mostly buying minority stakes to gain access to the market and to local innovative solutions.
Source: Business Standard
According to Crisil, of the 14 crops covered under MSP, only paddy and cotton saw a meaningful procurement during the past three years, with 45 per cent for paddy and 27 per cent of cotton output were procured at MSP but when it comes to groundnuts it was only 4-5 per cent of production and for pulses, it was even less. If the very low extent of procurement under the MSP is any indication, the very scheme is inefficient, given the low intake and massive price differences between the support and market prices, according to a NSE 0.10 % analysis. The government on Wednesday announced an average 6 per cent increase in the minimum support prices (MSPs) for this Kharif marketing season (2022-23), which is the highest in the past three seasons. But going by the past three years' data, the impact of the MSP has been almost nil on 12 of the 14 crops covered under the scheme, according to the analysis. According to Crisil, of the 14 crops covered under MSP, only paddy and cotton saw a meaningful procurement during the past three years, with 45 per cent for paddy and 27 per cent of cotton output were procured at MSP but when it comes to groundnuts it was only 4-5 per cent of production and for pulses, it was even less. The massive price difference is due to the fact that in fiscal 2019, the government had said going forward MSPs would be fixed at 50 per cent over the all-India weighted average cost of production. According to the agency, three aspects have to be looked at when assessing MSPs: the increase in the cost of production, level of crop procurement at MSP and traded prices of crops. However, from none of these parameters, the scheme is beneficial for farmers, the agency said, because both intakes at the MSPs -- which are as low as 47 per cent of the mandi price in the case of cotton and other crops, also the prices are never on par with the market prices. Even the cost of production assessment by the Commission for Agricultural Costs and Prices (CACP) for this season is flawed and much lower than the actual cost to the tune of 5 per cent as against 3 per cent calculated, the report said. Based on ground-level interactions, the agency estimates show the increase in the cost of production for the previous Kharif season was much higher at 5 per cent, compared to the 3 per cent shown by CACP. This was due to an increase in diesel price (which happened after the CACP assessment), which impacts machine labour that constitutes 12-13 per cent of the cost of production. Additionally, while selling prices for fertilisers remained largely stable due to a rise in subsidies, that of pesticides was up 7-8 per cent, which is not factored in fully in the current MSP revision. Labour and irrigation also turned dearer, which together account for 55-60 per cent of the farming cost. The second important aspect while assessing MSP is the level of procurement since farmers can obtain the benefit of MSP only when their crop gets majorly, if not fully, procured at the MSP. While paddy farmers in the North can benefit from the 5 per cent increase in the MSP, for cotton farmers it will be better to sell in the open market as the cotton MSP is 47 per cent lower than the mandi prices in May 2022. When it comes to oilseeds, the MSP for soybean has the sharpest rise of 9 per cent followed by sesame and sunflower (7 and 6 per cent jump, respectively. But despite this 9 per cent increase in soybean MSP, it is still 36 per cent lower than the mandi price for May. While the mandi prices are expected to cool off during the peak arrival season in OctoberNovember, they are expected to be above the MSP for cotton and oilseeds, the report said. Among pulses, moong has the highest rise in MSP at 7 per cent, followed by jowar at 8, and ragi at 6 per cent over last year.
Source: Times of India
Bihar has come out with a new textile and leather policy providing power and freight subsidy along with provident contribution for up to five years. Meanwhile, it has urged the Centre to do away with consumption-based quota mechanism for ethanol production. Syed Shahnawaz Hussain, Industries Minister of Bihar, told reporters here that based on the migrant survey, nearly 63 per cent of labour employed in various textiles units all over the country are Biharis. “This data is based on survey conducted among migrant workers returned to State during pandemic. With strong labour force along with much better law and order situation and improved infrastructure provide strong opportunity for development of textile and leather industry in Bihar,” he said. The State has 2,900 acres of available land bank. It has a population of 14 crore which means a big domestic market. “Till now, companies have benefited from the this large market, now time has come for them to manufacture here,” Hussain said. Further, with proximity to Nepal, Bhutan and Bangladesh and states such as Uttar Pradesh, West Bengal, Bihar has the potential to serve 55 crore population, he added. Policy The new policy will provide 15 per cent of plant and machinery investment as subsidy with a ceiling of ₹10 crore,₹2 per unit as power subsidy ranging from ₹2.5 lakh to ₹80 lakh (based on size of units) and 50 per cent of the expenditure incurred for patent registration with a capping of ₹10 lakh. “Units will get reimbursement of the ESI and EPF paid against employee as employment generation subsidy with a monthly grant up to ₹5,000 per employee for a period of five years,” he said. while adding 30 per cent freight reimbursement to be provided for taking goods to nearby ports for export. These are beside full reimbursement of State Goods & Services Tax (SGST), interest subvention subsidy up to 10 per cent of interest on term loan availed from a bank or financial institution, skill development subsidy of ₹20,000 per employee and 100 per cent reimbursement of stamp duty and land conversion fee. “State Government is setting up a special office in the Capital where investors will be accorded red carpet welcome, single window facilitation and all approvals within seven days,” Hussain assured. Ethanol Bihar is gearing up to be supplier of ethanol with 17 plants coming up. We have got₹36,253 crore worth of investment proposal, out of which 30,000 crore are for ethanol production only,” he said while highlighting that State does not just have very high maize production, but good quantity of water. “One litre of ethanol requires five litre of water and Bihar is blessed with large water source,” he said. However, Bihar’s hands are tied due to consumption based quota from ethanol production. “Bihar has got a quota for 18 cr litre of ethanol production which has now been raised to 36 crore litre while the State bid for 172 crore litre,” he said while informing that the Centre was urged to remove this quota system.
Source: Business Line
State industry minister Syed Shahnawaz Hussain said at New Delhi on Thursday that many companies like ITC and Hindustan Unilever are ready to invest in Bihar. Two leading textile companies, TT Limited and Rupa and Company Limited, have also expressed interest in setting up their units in the state. Addressing a press meet in the national capital on Bihar’s Textile and Leather Policy, 2022, Shahnawaz said: “Earlier they used to make godowns in Bihar. But now factories are being built here. Now we are inviting the industrialists of Bihar, who have gone out of the state due to lack of resources.” Elaborating about the new Textile and Leather Policy, the industry minister said it would give 15% subsidy that can go up to Rs 10 crore for setting up an industrial unit. Rs 2 per unit subsidy for electricity and a worker will also get a monthly grant of Rs 5,000 for five years. Besides, there would be 30% transportation subsidy besides Rs 10 lakh carriage (of raw and finished materials) subsidy annually for five years. “We have made the best policy textile policy in the country. Under the policy, we are giving grant up to Rs10 crores. Besides, we are giving Rs20,000 crore for skill development in order to develop the required skill sets among the workers here and ensure employment,” Shahnawaz said. He claimed that presence of weavers community is an important asset base in terms of availability of skilled and semi-skilled workers for textile units. “Being one of the highest populated states in the country, with a population of around 14 crores, Bihar itself is a huge market base. Also due to its proximity to nations such as Nepal, Bhutan and Bangladesh and also states like Uttar Pradesh, West Bengal and all north eastern states, it is an ideal place for export or sale of textile and leather items to these nations and neighbouring states,” Shahnawaz said. He added that several ethanol plants are ready for operation at Ara and Gopalganj. “Ethanol will now be produced rapidly in Bihar. Many people are coming to Bihar for this. So far, 17 plants have been approved. Thousands of people will get employment from these plants,” Shahnawaz said.
Source: Times of India
The Federation of Indian Chambers of Commerce and Industry (FICCI) jointly with Ministry of Textiles is organising the 5th National Conclave on Standards for Technical Textiles on June 10. Textiles Secretary Upendra Prasad Singh will deliver the inaugural address. The event will start from 10 am onwards and Pramod Kumar Tiwari, Director General, Bureau of Indian Standards will deliver keynote address. FICCI will moderate the inaugural session with Rajinder Gupta, Chair FICCI-Textiles Committee & Chairman, Trident Ltd. will virtually deliver the welcome address. Four sessions will take place covering topics such as, ProTech and Specialty Fibres, MediTech & AgroTech, GeoTech & BuildTech and MobilTech, Composites & InduTech. The event will be held in a hybrid model with final wrap up at 5pm.
Source: KNN India
Finance Minister AHM Mustafa Kamal has proposed an extension of the existing reduced 15% corporate tax for the textile sector for another three fiscal years, subject to its compliance with some conditions. While presenting the budget proposal for FY2022-23, he said that the prevailing tax rate for the textile sector stands at 15%, and the Statutory Regulatory Orders (SROs) to this effect expires on 30 June 2022 If they have paid any penalty slapped by any government authorities for violation of environmental rules and regulations, that fiscal year they have to pay a regular tax rate. The extension will be effective from 1 July this year and will remain in effect until 30 June 2025. The finance minister said, "Globally Bangladesh has retained second position in export of RMG. The revenue policy incentive of the government geared towards this industry has been the major driving force behind making this industry globally competitive." Previously, Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon told requested that the government continue this facility till 2030 to deal with post-LDC challenges. Envoy Textile Chairman Kutubuddin Ahmed previously told TBS such an extension to the reduced tax rate is not enough. The sector's total tax burden is higher as they have to pay source tax that is not adjustable with the corporate tax. Finance Minister AHM Mustafa Kamal has placed the Tk678,064 crore national budget for FY23 at Jatiya Sangsad with top priority to safeguarding marginal people from inflation fuelled by the Russia-Ukraine conflict. This is the fourth budget of the third consecutive term of the government led by Prime Minister Sheikh Hasina and also the overall 51st budget of the country. The proposed budget is Tk74,383 crore higher than the original budget size of the FY2021- 22 fiscal year, which was Tk603,681 crore.
Source: The Business Standard
The European Parliament and the EU Member States have reached political agreement on the directive on adequate minimum wages proposed by the European Commission in October 2020. The new legislation will apply to all EU workers who have an employment contract or employment relationship. The EU countries in which the minimum wage is protected exclusively via collective agreements will not be obliged to introduce it nor to make these agreements universally applicable. According to the agreement, member states will have to assess whether their existing statutory minimum wages (i.e. the lowest wage permitted by law) are adequate to ensure a decent standard of living, taking into account their own socio-economic conditions, purchasing power or the long-term national productivity levels and developments, the European Parliament said in a media release. For the adequacy assessment, EU countries may establish a basket of goods and services at real prices. Member states may also apply indicative reference values commonly used internationally, such as 60 per cent of the gross median wage and 50 per cent of the gross average wage. Deductions from or variations to the minimum wage will have to be non-discriminatory, proportionate and have a legitimate objective, such as the recovery of overstated amounts paid, or deductions ordered by a judicial or administrative authority. EU negotiators agreed that EU countries will have to strengthen sectoral and crossindustry collective bargaining as an essential factor for protecting workers by providing them with a minimum wage. Member states in which less than 80 per cent of the workforce is protected by a collective agreement will have to create an action plan to progressively increase this coverage. To design the best strategy for this purpose, they should involve social partners and inform the Commission of the adopted measures and make the plan public. www.citiindia.org 14 CITI-NEWS LETTER The agreed text introduces the obligation for EU countries to set up an enforcement system, including reliable monitoring, controls and field inspections, to ensure compliance and address abusive sub-contracting, bogus self-employment, non-recorded overtime or increased work intensity. National authorities will have to ensure the right to redress for workers whose rights have been infringed. Authorities must also take the necessary measures to protect workers and trade union representatives, the release added. The provisional political agreement reached by the EP negotiating team will now have to be approved first by the Employment and Social Affairs Committee, followed by a plenary vote. The Council also has to approve the deal.
Source: Fibre 2 Fashion
The textile sector, which has the highest weight in the Large Scale Manufacturing, grew by 3.2% during July-March in fiscal year 2021-22 as compared to 8% in the same period last year, showing a significant slowdown in growth, according to the Economic Survey 2021-22 unveiled on Thursday. Textile sector's weight has been reduced from 20.9 to 18.16% in QIM 2015-16 but it is still the highest among all sectors of LSM. Major growth originated from woolen segment production with the highest surge of 38.9% in blankets, 27.9% growth in woolen and carpet yarn, and 19.1% in woolen worsted cloth. Production of yarn and cloth showed marginal growth of 0.7% and 0.3%, respectively. “Congruent production units, invariant capacity and elevated cotton prices owing to demand and supply gap disruptions have moderated the growth momentum of the cotton sector,” stated the Economic Survey 2021-22 document, unveiled by Finance Minister Miftah Ismail.
Key highlights of the Pakistan Economic Survey 2021-22
“Depreciation of rupee restrained the production of jute, as most of the raw material is imported from Bangladesh. However, surge in imports of textile machinery, rising demand for concessionary financing from textile firms and high exports of this sector showing a sizable improvement in the textile sector,” it added. Wearing apparel has been separated from the textile sector with 6.08 weight in the LSM. It showed a significant growth of 34% against the contraction of 35.6%. The sector has gained traction locally as well as in the international market as garments production grew at 34% during the period. The export of garments also escalated with 33.9% growth in terms of quantity. Textile is the most important manufacturing sector of Pakistan and has the longest production chain, with inherent potential for value addition at each stage of processing, from cotton to ginning, spinning, fabric, dyeing and finishing, made-ups and garments. This sector contributes nearly one-fourth of industrial value-added and provides employment to about 40% of the industrial labour force. Barring seasonal and cyclical fluctuations, textiles products have maintained an average share of about 61.24% in national exports. Meanwhile, the export of knitwear showed a contraction of 4.8% in quantity terms, while it increased by 34.1% in terms of value during the period under review. The ready-made garment industry has emerged as one of the important small-scale industries in Pakistan and is a good source of providing employment opportunities to many people at a very low capital investment. Owing to huge potential and demand, its exports show a massive growth of 33.9% in quantity and 26.2% in value from 27.8 million dozen to 37.3 million dozen worth $2.8 billion as compared to $2.27 billion for the same period last year. Exports in the towel sector stood at $819.6 million against $692.1 million, showing an increase of 18.4% in terms of value and 5.1% in terms of quantity. Meanwhile, Pakistan exported synthetic textile fabrics worth $343.59 million as compared to $269.20 million the same period last year - showing an increase of 27.6%. In quantitative terms, the exports of synthetic textile decreased by 33.6%.
Source: Brecorder
China's imports and exports totalled 16.04 trillion yuan ($2.4 trillion) between January and May this year, growing by 8.3 per cent year on year (YoY), according to the general administration of customs, which recently said exports grew by 11.4 per cent on a yearly basis to 8.94 trillion yuan, while imports increased by 4.7 per cent from last year to 7.1 trillion yuan. The nation's trade value with the Association of Southeast Asian Nations (ASEAN), the European Union (EU), the United States and South Korea were respectively worth 2.37 trillion yuan, 2.2 trillion yuan, 2 trillion yuan and 970.71 billion yuan, increasing by 8.1 per cent, 7 per cent, 10.1 per cent and 8.2 per cent YoY respectively. ASEAN members remain the largest trading partner for China, accounting for 14.8 per cent of the nation's total foreign trade, according to official Chinese media.
Source: Fibre2fashion
Supply chains may have to shift to recyclable, durable clothes -- with uncertain consequences European regulators have declared war on "fast fashion," forcing a rethink of the throwaway culture that has dominated the 21st-century clothing industry and promising to rejigger sartorial supply chains that reach deep into Asia. Proposed rules from the European Union would force companies to overhaul their clothing designs to meet a laundry list of criteria governing everything from how long a garment lasts, to how much recycled yarn it contains. The aim is to reduce the environmental impact of the industry by increasing durability. It could spell the end for low-quality synthetic fiber, shoddy sewing and other production shortcuts -- and for apparel that falls apart in the wash. In other words, the decline of quick, cheap, mass-produced clothes. "The impact to environment is not directly seen. It's accumulated from a thousand -- or a million, a billion people," said Institute for Circular Economy Development Director Nguyen Hong Quan. Under the EU rules, he hopes the high-volume business of fast fashion will give way to a production model that keeps resources circulating through reuse. "You can make something [of] beauty from recycled material." In recent years, the EU has tried to use its heft as a large market to move the needle on many green goals, from a carbon border tax to extended producer responsibility for electronic and plastic waste. Its textiles strategy, which the European Commission (EC) presented to a parliamentary committee on May 17, is the latest in those efforts. In its strategy document, the EC said it will introduce rules to combat "overproduction and overconsumption of clothing." It targets an industry that has been thoroughly dressed down by critics for pollution in landfills and in the air, thanks to greenhouse gases emitted in making finished clothing and polyester. Fast fashion refers to a modern industry of disposable attire built around rapidly shifting consumer tastes. It is underpinned by both fashionistas, who are willing to wear a purchase just once, and manufacturers that rely on low-cost materials and labor for a quick turnaround before the next trend catches fire. Global apparel production doubled from 2000 to 2014, a period during which the average person bought 60% more clothes but kept items only half as long, according to management consultancy McKinsey. In the past two decades, prices have fallen as companies switched to fossil-fuel-based synthetic fabrics, which tend to cost less than cotton, and offshored production to Asia, which became the top exporter of clothes to Europe and the rest of the world. Brands like Decathlon, Uniqlo, and H&M say they are working with Asian producers from China to India to prepare for the new rules from Brussels, but not everyone is on board. "This could cause confusion and incur delays," a Guangzhou supplier to major retail brands told Nikkei Asia. "Manufacturing here is all about being cheap and fast." Supporters in the industry say the EC's plans would level the playing field by moving the whole sector toward long-lasting garments. "Industrywide policies should support companies to decouple growth from virgin resource use," said Pernilla Halldin, head of public affairs for H&M Group. She said all H&M products should be designed for recycling by 2025 and welcomed the "granularity" of the EC plans, which also covers other textile goods, from shoes to carpets. The proposal, called the EU Strategy for Sustainable and Circular Textiles, promises "binding, product-specific ecodesign requirements" citing problems that shorten the life cycle of products: colors fade; zippers break; blended polyester and cotton make fibers hard to recycle. That level of specificity suggests the EC will introduce detailed criteria -- down to the zipper -- that companies will have to meet in order to sell to EU consumers. Details are pending, and will have to win approval from the European Parliament and EU member governments before coming into force, which the commission envisages will happen in 2024 for the most significant rules. But the three key changes under consideration are clear. First, the strategy document says, there will be standards for "durability, reusability, reparability, fiber-to-fiber recyclability and mandatory recycled fiber content." Second, businesses will have to print related data, such as a reparability score, on clothing labels. Third, the EU may ban companies from throwing away unsold goods, or require them to report how much they discard.
Source: Asia NIKKEI
