India exported textiles and handicrafts worth more than USD 44 billion -- an all-time high -- last financial year, Textiles Secretary U P Singh said on Tuesday. He was speaking at an industry event in Greater Noida which was inaugurated by Union Minister of State for Textiles and Railways Darshana Vikram Jardosh. Jardosh, while inaugurating the 11th edition of HGH India 2022, said the country is celebrating its 75th year of Independence and it is the best time to showcase made-in-India products. "Especially after the pandemic, one sector under textile which has really got a boost has been home textile. The government has also launched 7 mega textile parks that would take care of the high logistics cost as well as the fragmented value chain which we have," he added. Most of the major exporting destinations like the US and EU are all going for a 'China plus one' strategy, which will prove to be beneficial for India since the cost of labour is low as compared to the neighbouring country, he said.
Source: Deccan Herald
“This will be the fulcrum of development of the entire textile sector,” Goyal said, adding that the campus will help create a complete ecosystem of textiles in Haryana. Union Minister Piyush Goyal, in presence of Chief Minister Manohar Lal Khattar, Tuesday inaugurated the 17th campus of the National Institute of Fashion Technology in Panchkula and expressed hope that that it will introduce hybrid courses to expand its reach. “This will be the fulcrum of development of the entire textile sector,” Goyal said, adding that the campus will help create a complete ecosystem of textiles in Haryana. Khattar said: “With the inauguration of this campus, another step forward has been taken by Haryana government for the development of the state. Students who desire to make a career in the field of fashion design will not have to go out for further studies. The institute will certainly give a boost to the textile, handloom and cottage industries in the state. As per the policy of NIFT, 20 per cent of seats will be reserved for the domicile of Haryana”. He said that Smriti Irani, as then Union Textiles Minister, had laid the foundation stone of the campus on December 29, 2016. Rs 133.16 crore has been spent on the construction of the institute building spread over 10.45 acres of land. Khattar said he had sought the Centre’s help for some works in the second phase for this institute, including the building of the hostels and auditorium and can share the cost on the basis of 50:50 ratio with the ministry of textiles. Goyal, the Union Minister for Textiles and Commerce and Industry, asked NIFT to introduce hybrid courses to expand its reach. Three online hybrid courses — photography for e-commerce, social media marketing, and digital designing for textiles — will be started in the new NIFT campus, he said. “In Jhajjar, I am told wood-carving and pottery work is famous, likewise in Bhiwani handloom work is famous, in Ambala and Patiala ‘phulkari’ work is famous, if we can connect these industries with NIFT it will help them upgrade as well,” he said. Developing co-curriculum with institutes like National Institute of Design and National Institute of Packaging can be explored as a part of the “holistic training,” Goyal said. He said he was told that after Delhi, this is the second most sought after campus of NIFT in north India. Comparing it with cities like Gurugram, Goyal said that Panchkula is also emerging as township which will define Haryana’s development. Khattar said, the Institute at Panchkula will offer four-year degree courses in the areas of Fashion Design/Textile Design, Apparel Production and two-year master degree courses in Fashion Technology, Design and Fashion Management. Apart from this, there will also be certificate programmes of one year and six months duration. He said that this newly inaugurated NIFT campus would give a major boost to the textile, handloom and cottage industries in the state.
Source: Indian Express
The new campus of National Institute of Fashion Technology in Panchkula was inaugurated today by Sh. Piyush Goyal, Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles and Sh. Manohar Lal Khattar, Chief Minister, Haryana. During his address after the inauguration, Sh. Piyush Goyal applauded the efforts of various teams, Architecture Department, NIFT, Haryana Technical Education and other departments, which had worked on planning and construction of this campus. Talking about his roots in Haryana, the minister applauded the efforts of Sh. Manohar Lal, Chief Minister, Haryana which made the establishment of this campus possible. Shri Goyal revised the mantra of 5 F’s for the fashion industry that are Farms to Fibre to Fabric to Fashion to Foreign export to make the Textile industry of India a strong name in the world. Chief Minister of Haryana, Shri Manohar Lal thanked the former textile minister Smt. Smriti Irani and Prime Minister Shri Narendra Modi for their guidance and support through the planning and establishment of the centre. He said that the centre’s building was exceptional and requested the central government to grant further funds to construct amphitheatre and auditorium for the centre. He also welcomed students from all over the country to Haryana. Sh. Gian Chand Gupta, Hon’ble Speaker, Haryana Vidhan Sabha, Sh. Rattan Lal Kataria, Hon’ble Member of Parliament, Ambala and Sh. Kanwar Pal Gujjar, Haryana Education Minister were also present on the occasion. The event began with inauguration of the campus with unveiling of plaque and ribbon cutting by dignitaries. This was followed by a tour of the campus and plantation of saplings in the campus lawns. NIFT Panchkula, established in 2019 with CE (Continuing Education) programmes, is the youngest one and is growing rapidly at its pace. Its first batch of degree students (Masters of Fashion Management) joined the campus in the year 2020. The centre has been ranked at 13th position in fashion education in the country in a study conducted by the Outlook India in 2022. NIFT Panchkula offers four Undergraduate Programmes in Fashion Design, Textile Design, Fashion Communication & Fashion technology and two Postgraduate Programmes in Design Space and Fashion Management. The campus has been functioning since 2019 from the premises of the Government Polytechnic in Sector 26, Panchkula. In its initial years, NIFT Panchkula faced the biggest challenge of welcoming the students online. Now, with the pandemic phase over, NIFT gears up to welcome its students with a well-equipped building with various labs across the departments in a lush green campus with the backdrop of Morni Hills. The centre also offers state domicile for the admission of students of Haryana state. Various schemes of Government of India offer financial support to deserving students as well. The premises also has a fully equipped 108 seater girl’s hostel as well, keeping in mind the safety and convenience of students, which will be open from the upcoming session in August 2022. The curriculum and the faculty are devoted to upliftment of indigenous crafts and artisan’s welfare under various schemes implemented by the directives of Office of Handloom and Handicrafts, Ministry of Textiles, Government of India. The first Postgraduate batch of 33 students of Master of Fashion Management graduated in the year 2022 and has been successfully placed in the companies like Tata Trent, Reliance Brands, Landmark group, Shoppers Stop, Grasim etc. NIFT is the pioneer institute of fashion education in the country and has been in the vanguard of providing professional human resource to the textile and apparel industry. It was made a statutory institute in 2006 by an Act of the Indian Parliament with the President of India as ‘Visitor’ and has 17 full-fledged campuses all across the country. It has a vision to offer a learning experience of the highest standards in fashion; pertaining to design, technology and management. The student body is exposed to India’s traditional textiles and crafts to draw inspiration from while focusing on emerging global trends relevant to the industry.
Source: PIB
Buoyed by global sentiments, government schemes, cheap labour and a skilled workforce, India’s manufacturing exports grew 40% year-on-year in FY22 to hit a record $418 billion. India is expected to scale up its manufacturing exports to $1 trillion by FY28 and analysts have said that much of this growth will come from a select few sectors. As per a report by global consultancy firm Bain & Company, exports by the chemicals industry are estimated to grow at a CAGR of 19%–23%, or around $110– $130 billion by FY28, owing to the low cost of manufacturing and rising investments. India’s drugs and pharmaceutical exports are expected to grow at a CAGR of 16%–18%, or $45 billion–$50 billion) by FY28. “India’s strength in pharma—coupled with recent factors like incentivisation under PLI schemes, strong capex and PE/VC investments with 100% FDI, and rising labour costs in competing countries like China—is going to propel growth in exports,” it said. The other sectors that will lead this growth include industrial machinery ($70-75 billion), electrical and electronics ($120-145 billion), automotive ($45-55 billion) and textile & apparel ($95-110 billion). But if the country is to scale up its manufacturing exports, Indian companies should focus on having a clear export strategy, the right execution chops, the right partnerships for enabling exports, and optimal capital expenditure efficiency focus to build manufacturing capacity, the report said. Exports growth momentum India’s merchandise exports jumped from $292 billion in FY21 to $418 billion in FY22. It also crossed the peak of $328 billion hit in the pre-pandemic year FY19. This momentum has continued of late, as exports jumped 24.22% YoY to $38.19 billion in April and increased 15.46% YoY to $37.3 billion in May. India is the sixth-largest manufacturing economy in the world and contributes 3.1% to the world GDP. Despite this, India’s export contribution to global trade is only 1.6%. “Building on the competitive advantage of a skilled workforce and lower cost of labour, the manufacturing sector is also witnessing an increased inflow of capex and heightened M&A activity, leading to a surge in manufacturing output and resultant increased contribution to exports,” said Sushil Pasricha, partner at Bain & Company. Among the trends that have fast-tracked India’s export growth in the last two years are supplychain diversification, India’s sectoral advantages in key manufacturing sectors (chemicals, pharmaceuticals, automotive, electronics, industrial machinery, and textiles) and government-led initiatives. Analysts say the Centre’s PLI scheme with an outlay of $47.8 billion planned over five years, starting in 2021 has increased in-country production and helped manufacturingled exports. India has also signed key free-trade agreements (FTAs), including IndiaUAE Comprehensive Partnership Agreement (CEPA) and India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) which will boost bilateral trade, creating an environment for export growth, Pasricha said. India’s acceleration of capex cycle will help cater to the increased demand, analysts said. The Indian government has budgeted a 35% YoY rise in capex for FY23 to around $100 billion. Mergers and acquisitions, PE/VC-led investments have also gained traction in the momentum in recent years. Data shows that much as 18% of the total PE/VC investments in 2021 were in the manufacturing sector, with the majority of them in the pharmaceuticals, and chemicals subsectors.
Source: Economic Times
In January, both countries formally launched talks for a free trade agreement to boost bilateral trade and investments.There are no indications about the effect of the recent political developments in Britain on the ongoing negotiations for a proposed free trade agreement between the two countries, Commerce and Industry Minister Piyush Goyal has said. On July 7, British Prime Minister Boris Johnson announced his resignation as Conservative Party leader following an unprecedented mutiny from within his Cabinet and after being abandoned by his close allies in the wake of a series of scandals that rocked his government, triggering a leadership election for a new Tory leader who will go on to become his successor. In January, both countries formally launched talks for a free trade agreement to boost bilateral trade and investments. In such pacts, two countries either eliminate or significantly reduce customs duties on the maximum number of goods traded between them besides easing norms for promoting investments and services trade. "It (political developments in the UK) has happened very recently, and we have not received any indications of that sort. But since the Conservative Party is still going to be in the government and normally in relation to international engagements, government's have continuity. So, I do not see any immediate problem and I have not heard of any reason, which may affect the strong bilateral partnership between India and UK," Goyal told PTI. He was replying to a question about whether the resignation of the UK's prime minister is going to affect the ongoing negotiations for the India-UK trade deal. The talks are at an advanced stage, and both sides have agreed on many chapters of the proposed pact. When asked about meeting the deadline of concluding talks by Diwali, the minister said FTA negotiations are "very" complex affairs and involve a lot of careful assessment of different elements. "We will put in our best effort to meet these very challenging deadlines," he added. In April, Prime Minister Narendra Modi and his UK counterpart Boris Johnson had set the deadline for Diwali for the negotiating teams to conclude the FTA talks. Diwali falls on October 24 this year. The UK is also a key investor in India. New Delhi has attracted foreign direct investment of USD 1.64 billion in 2021-22. The figure was about USD 32 billion between April 2000 and March 2022. India's main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment and parts, spices, metal products, machinery and instruments, pharma and marine items. Major imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments, non-ferrous metals, chemicals and machinery. In the services sector, the UK is one of the largest markets in Europe for Indian IT services. The bilateral trade has increased to USD 17.5 billion in 2021-22 compared to USD 13.2 billion in 2020-21. India's exports stood at USD 10.5 billion in 2021-22, while imports were USD 7 billion.
Source: Business Standard
Electricity was the biggest driver of industrial output, rising 23.5%. Manufacturing output grew by 20.6%, while mining output grew by 10.9% India’s retail inflation rate in June remained above the upper tolerance limit of the central bank for a sixth straight month, increasing chances of further monetary policy tightening, even as industrial production in May jumped to a 12-month high, supported by a low base. Data released by the National Statistical Office on Tuesday showed that the Consumer Price Index (CPI)-based inflation eased only marginally to 7.01 per cent in June from 7.04 per cent in the previous month, while the Index of Industrial Production (IIP) grew 19.6 per cent in May compared to 6.7 per cent in April. In April, headline retail inflation had touched an eightyear high of 7.79 per cent. The CPI for June was primarily driven by sticky food prices. Consumer food price inflation stood at 7.75 percent in June compared with 7.97 in May. Food prices account for nearly half of the inflation basket. The sub-groups that saw the sharpest year-on-year rise in June were vegetables (17.37 per cent), spices (11.04 per cent), fuel and light (10.31 per cent), and footwear (11.92 per cent). “Inflation is expected to remain elevated with only a gradual descent through the rest of the year. While the softening global commodity prices provide some relief, the gains will be limited due to a weakening rupee,” said Upasna Bhardwaj, chief economist, Kotak Mahindra Bank. On June 8, the six-member Monetary Policy Committee (MPC) of the RBI unanimously decided to raise the repo rate by 50 basis points. This followed an off-cycle rate hike of 40 basis points in May, making it a 90 bps rate hike in just over a month. Analysts expect two more rounds of rate hikes. “We continue to foresee front-loaded rate hikes of 60 bps spread over the next two policy reviews followed by an extended pause, as the MPC will focus on containing inflationary expectations without sacrificing growth,” said Aditi Nayar, chief economist at ICRA Ltd. On the industrial output front, the biggest driver was electricity, which rose 23.5 per cent. Manufacturing output grew by 20.6 per cent, while mining output rose 10.9 per cent. “IIP growth has been statistically driven with all components witnessing high growth rates. Within manufacturing, barring pharma, which had negative growth, all industries posted impressive growth. This was also reflected across the primary, intermediate and infra goods,” said Madan Sabnavis, chief economist, Bank of Baroda. Sabnavis said the growth in industrial output should be viewed with caution as the future course would depend on how inflation impacted consumption trends. “Infrabased industries are likely to sustain with government capex leading the way. But to be sustained, we need to see private investment also pick up which is still feeble,” he said. According to the use-based classification, all sectors grew at a robust pace, especially consumer durables at 58.5 per cent and capital goods at 54 per cent. However, consumer non-durables grew only 0.9 per cent, signalling that rural demand continues to be weak. Sunil Kumar Sinha, principal economist at India Ratings, said a significant pick-up in IIP growth was indicative of ongoing economic recovery, but its sustainability was still not a given in view of the raging inflation and adverse global geopolitical situation.
Source: Business Standard
The economic outlook for India for fiscal 2022-23 (FY23) remains quite uncertain and will be fully dependent on private consumption and investment demand, according to a report by rating and research agency CareEdge, which recently said it is tough to foresee whether easing commodity prices will continue amid a volatile economic environment. Slowing global gross domestic product (GDP) growth, however, could also have a bearing on the economy, it said. "Overall, various high-frequency indicators have been exhibiting a mixed trend so far in FY23. While indicators such as GST [goods and services tax], E-way bill registrations, credit growth and PMI services have been performing well, others continue to lag. As a result, the economic recovery has remained uneven," the rating agency said. Challenges on account of geopolitical risks and inflation continue to hamper the growth momentum, whereas consumption demand is improving, albeit at a slower than desired pace. "CareEdge Economic Meter (CEM) continued on the downward trajectory in June for the third straight month. The score eased to 5.4 after ending the previous financial on a high of 7.6. The moderation in the score, in part, reflects the cooling down of pent-up demand following the Covid-19 third wave," it said. The Indian economy is also facing inflationary challenges that have particularly affected the manufacturing sector. Consumption has been slow to recover amid growing inflationary expectations, the report said. Other challenges affecting the pace of the economic recovery include financial sector volatility amid growing interest rates, fund outflows and weakening of domestic currency. With progress in rainfall and improved Kharif sowing in July, the demand for agricultural laborers is expected to rise, which may bode well for rural employment as well as rural consumption demand. Urban employment is expected to gain from the rising economic activities as well, the report added.
Source: Fibre2 Fashion
Exporters here have welcomed the Reserve Bank of India (RBI) announcement on Monday allowing invoicing and payments for international trade in Indian Rupee. However, this may not give immediate benefit and to not all exporters, they say. A. Sakthivel, president of Federation of Indian Export Organisations, said that exporters who are executing orders now cannot change the terms of agreement. However, for future agreements, they can negotiate with the buyer and see if payments can be received in the Rupee. With the RBI announcement, final settlement to all countries, if approved by RBI, can be in Indian Rupee. “This move will pave the way for trading and settlement of Exim transactions in Indian Rupee.” This move is a recognition of the Indian Rupee as an international currency. The government should clarify on exports benefits for such exports in Rupee, which are now given only to export payments received in foreign currency, he said. Siddhartha Rajagopal, Executive Director of Cotton Textiles Export Promotion Council, said the announcement will benefit exporters and importers who have trade relations with countries such as Sri Lanka, Iran, or Russia. Indian exporters can make a beginning now to receive payments in Indian Rupee. It will strengthen the Rupee in the future. However, the exporters are waiting for clarity on export benefits that will be available for transactions in Indian Rupee. According to President of Tiruppur Exporters’ Association Raja M. Shanmugham, the RBI announcement is a good move. However, only countries with which India has bilateral agreement will have Rupee in its reserves to make payments. Further, “The Indian Rupee is now vulnerable for depreciation. Hence, the buyer will be reluctant. The government should build confidence among exporters and importers that the Rupee is a stable currency,” he said. Chairman of Southern India Mills’ Association Ravi Sam said the policy will encourage countries having substantial trade with India and having forex shortage to increase their trade with India. Though the real benefit could be reaped only after a considerable time, in the long run this will encourage several countries intending to trade in INR to opt for such trade. Several textile exporters are struggling to realise the money from certain countries ,including Russia and Sri Lanka that are currently facing economic crisis and sanctions. The RBI decision will help settle the exports/import payments and encourage cordial trade relationship with these countries. An engineering exporter here said the announcement is not useful for all exporters. Companies that require foreign currency for their imports will not prefer Rupee payment for their exports. “One advantage in Rupee payment is that we do not spend on currency conversion,” he said.
Source: The Hindu
Internationalisation of rupee is a long way off, but RBI has made a good beginning. The Reserve Bank of India’s (RBI) move to permit the invoicing, payments and settlement of exports and imports in rupees is aimed at preventing dollar outflows and addressing the immediate liquidity mismatch in the local dollar market. That, in turn, is expected to slow the depreciation of the rupee. To be sure, the arrangement is expected to play out largely in the India-Russia trade corridor. At this juncture it seems highly unlikely New Delhi’s trading partners in the developed world would be comfortable accepting rupee receipts in lieu of hard currencies. To that extent, it’s not as though the rupee is going to become internationalised or a widely used currency anytime in the near future. However, by not specifying any countries with which payments and settlements in the rupee would be permitted, India is being politically correct. At the same time, the policy leaves the door open for a rupee-based payments mechanism with other countries —Sri Lanka, for instance. RBI’s immediate objective is, of course, to enable importers to pay for expensive oil and coal in rupees, thereby preserving dollar assets. As is known, India has been importing more crude oil from Russia post the sanctions imposed on it in the wake of hostilities with Ukraine. If these can be paid for in rupees, it would help narrow the trade deficit, which, in May, bloated to $25.6 billion. From Russia’s point of view, the export proceeds, earned in rupees, would not be big enough to impact its reserves. The mechanism, therefore, should work out, given the good political relations between the two countries. However, it’s not clear just yet how many of the Indian banks would want to facilitate rupee trade and it might take more than a nudge from the government to get them going. Bankers have also highlighted a potential problem in that the importing country’s banks may need to buy rupees from the market in the event their special Vostro accounts don’t already have a rupee balance. This, should, however, not be an issue in the case of Russia. Moreover, it’s a good move on the part of the central bank to allow the rupee balances in the special Vostro accounts to be used for various purposes; the funds can be used to pay for projects and investments, to manage the advance flows for exports and imports. The balances can also be invested in government securities and treasury bills, which would earn relatively high interest rates. Should the arrangement work, it would help prevent dollar outflows and help the central bank address the mismatch in the market where demand for dollars from importers is outstripping the supply from exporters and where the situation is being exacerbated by portfolio outflows. While the RBI is supporting the market, much of the dollar sales seem to be in the forward market rather than in the spot market. The trade facilitation measures follow the central bank’s moves last week to ease the rules to attract dollar deposits and foreign portfolio flows (FPI). While there could be some inflow of dollar deposits, it might not meaningfully help stem the depreciation of the rupee. Right now the rupee’s trajectory is being determined more by the strength of the dollar index, which on Tuesday hit a new high of 108. Nonetheless, it’s worth exploring ways to bring in the dollars.
Source: Financial Express
The commerce and industry ministry has notified a new Board of Trade which consists of a mix of large and small enterprises with sectoral and geographical distribution. The government has nominated 29 non-official members, including NSE 0.01 % Chief Executive Officer and Managing Director Rajesh Gopinathan, KKR India Chairman Sanjay Nayar and Laghu Udyog Bharati Executive Member Om Prakash Mittal, to the Board of Trade, India's advisory body on foreign trade policy. The commerce and industry ministry has notified a new Board of Trade which consists of a mix of large and small enterprises with sectoral and geographical distribution. Other non-official members include Pasha Patel, former member of Maharashtra Legislative Council; Pankaj Mahindroo, Chairman India Cellular and Electronics Association; Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT); GCMMF (Amul) Managing Director RS Sodhi, among others, the commerce and industry ministry said in a statement. B S Nagesh, chairman, NSE 0.95 % , too finds a place on the board.
A recent research paper co-authored by WRAP and the University of Surrey[1] found that the implementation of different business models in the textiles industry (such as clothing resale businesses, clothing rental, and swapping and sharing platforms) can help to reduce the high burden on the environment as a result of clothing consumption, but acknowledged that replacing the mass consumption of fast fashion altogether with such business models appears to be a long way off. Developments at both EU and UK level are intended to drive such change forward. The long-awaited EU Strategy for Sustainable and Circular Textiles was published on 30 March 2022 (the “Strategy”), implementing commitments made in the European Green Deal, the Circular Economy Action Plan, and the Industrial Strategy, in which textiles were identified as a key product value chain with an urgent need for transition to sustainable and circular production, consumption and business models. The Strategy aims to set out a framework for this transition and forms part of the package of interlinked initiatives on sustainable products released by the European Commission, the ambition of which is to make sustainable products the norm through:
• product design;
• helping businesses and consumers make more informed choices;
• ending the destruction of unsold consumer goods; and
• the promotion and procurement of more sustainable products.
See our article on the package of sustainable product measures here. The Strategy has bold aims, with a target of achieving them by 2030. These include that all products placed on the EU market should be durable, repairable and recyclable, free from hazardous substances and largely made of recycled fibres; re-use and repair services are widely available; and that producers take responsibility for their products along the value chain. To achieve this, the European Commission has confirmed that it will, amongst other actions:
Establish design requirements, such as in respect of colour fastness, tear strength and zipper quality, to increase textiles’ performance, making them last longer and easier to repair and recycle. This is to be brought forward in ecodesign requirements to be established under the proposed Ecodesign for Sustainable Products Regulation (and the adoption of further delegated acts) which will target product durability and reliability (amongst other aspects) for a range of product types including textiles. Specific attention will be paid to the costeffectiveness and proportionality of measures, as well as the affordability of textiles. • Introduce clearer information on labels and a digital product passport, based on mandatory information requirements on circularity and other environmental aspects (see our article linked above for further detail on digital product passports). This will involve a review of the Textile Labelling Regulation, including a proposal for the mandatory disclosure of sustainability and circularity parameters, size and country of origin, and the potential for introducing a digital label. • Empower consumers and tackle greenwashing claims, in part by amending the Unfair Commercial Practices Directive and the Consumer Rights Directive, to ensure that consumers are provided with information at the point of sale regarding a commercial guarantee of durability and a repairability score. Certain claims will only be allowed if underpinned by recognised excellence in environmental performance such as EU Ecolabels (which the European Commission will review) and there will be conditions for making claims about future environmental performance and comparisons to other products. The European Commission also intends to focus on the accuracy of green claims made in respect of recycled plastic polymers in apparel, particularly where these polymers do not come from fibre-to-fibre recycling but from PET bottles. The European Commission recently held a webinar on the Product Environmental Footprint Category Rules for Apparel and Footwear, which helps standardise the assessment of the lifecycle of a product to avoid greenwashing. • Stop overproduction and overconsumption (the move away from “fast fashion”), with companies encouraged to become the “champions” of this shift through product-as-service models, take-back services, second-hand collections and repair services. • Discourage the destruction of unsold or returned textiles, with a proposal for a ban on the destruction of unsold products, and a transparency obligation under the Ecodesign for Sustainable Products Regulation, requiring large companies to publicly disclose the number of textile products they discard and destroy. • Harmonise extended producer responsibility rules for textiles and provide economic incentives to make products more sustainable. There are proposals to harmonise the rules for textiles with eco-modulation of fees as part of the 2023 revision of the Waste Framework Directive, and mandatory targets for the re-use and recycling of textile waste. • Address the unintentional release of microplastics from synthetic textiles, through binding design requirements under the Ecodesign for Sustainable Products Regulation and the European Commission’s initiative to address the unintentional release of microplastics in the environment. Product design, manufacturing processes, pre-washing, labelling, washing machine filters, mild detergents, care guidelines, and end-of-life textile waste treatment and wastewater and sewage sludge treatment will be covered by the proposed measures. See our previous article on microplastic developments in the UK and EU here. • Address challenges arising from the export of textile waste - under the proposal for new rules on the shipment of waste, the export of textile waste to non-OECD countries would only be allowed under the condition that such countries notify the European Commission of their willingness to import specific types of waste and demonstrate their ability to manage it sustainably. Further, the European Commission will consider developing specific criteria to distinguish between waste and certain second-hand textiles in order to avoid waste streams being incorrectly labelled as second-hand for exports to circumvent the waste regime. • Publish an action plan by the end of 2022 for those in the textile sector to successfully achieve the transition. Through the plan, or “Transition Pathway”, from the second quarter of 2022, stakeholders will be invited, through a survey and workshops, to propose specific actions and work towards the objectives. A consultation on the Staff Working Document “Scenarios towards co-creation of a transition pathway for a more resilient, sustainable and digital textiles ecosystem” recently closed in June 2022 and many other proposed measures are now open for consultation.
It is reported that European consumption of textiles has the fourth highest impact on the environment and climate change, after food, housing and mobility and that 88% of Europeans think that clothing should be made to last longer. Progress across the board has been slow in addressing these issues to date, but the publication of the Strategy marks a shift in gears. Its ambitions are far-reaching and, while it remains to be seen how the finer detail will be implemented, there is little doubt that significant change is forthcoming for the textile industry. EURATEX, the European Apparel and Textile Confederation, while welcoming the publication of the Strategy, have commented that the proposed Sustainable Product Regulation has an overwhelming ambition, and to be realistic, requires cooperation between institutions and business. Whilst the transition may present certain challenges, it will offer opportunities for the development of innovative business practices and technologies, such as in relation to recyclable fibres, microplastic solutions and circular business models such as renting. It is likely that such movement at European level will set the tone for future legislative reform in the UK and trigger change (see our previous article on the Waste Prevention Programme for England here). Whilst the publication of the government’s response to its consultation on extended producer responsibility (“EPR”) for packaging (March 2022) did not include any further announcements regarding an EPR for textiles, it is anticipated that such measures will be introduced in the forthcoming future. Increased regulation is likely to be welcomed by certain industry stakeholders. The Textiles Exchange, affiliated with WRAP's Textiles 2030 initiative, released a report in June 2022 which emphasised that more regulation is needed to raise the minimum standard and create a level playing field for brands and retailers. This position is also more likely to attract investment. Developments at UK level have started to emerge. In Scotland, the consultation on proposals for a Circular Economy Bill confirmed that in the first half of 2022, a new £2 million Circular Textiles Fund will be introduced to support businesses to address textile waste and “throwaway culture”. There are also proposals for ministers to have powers to require mandatory public reporting of unwanted surplus stock and waste, focusing on food primarily, consideration is to be given to applying this to textiles also. Following a DEFRA consultation, leather will be classed as a forest risk commodity in forthcoming legislation tackling deforestation in UK supply chains (reported on here). On 8 June 2022, Prime Minister Boris Johnson pledged £80 million in government funding for a 10-year Fashion Industry Sustainable Change Programme which aims to support industry in embracing new circular business models and creating recycling and sorting infrastructure. It is key that stakeholders in the textile sector and beyond keep abreast of these developments and take account of them in their strategic planning.
Source: Lexology
New International Land-Sea Trade Corridor boosts China-ASEAN trade
Land-sea freight trains plying on the New International Land-Sea Trade Corridor have collectively carried over 379,000 twenty-foot equivalent units (TEUs) of cargoes in the first six months of this year, up by 33.4 per cent compared to the same period last year. The route has boosted trade between China and ASEAN countries under the RCEP agreement. The number of trains operating on the sea-rail intermodal route of the corridor has increased to 6,117 in 2021 from 178 in 2017, said Chinese media reports quoting data released by China Railway Nanning Bureau Group Co., Ltd. The Corridor is a trade and logistics passage with an operational hub centred on Chongqing. It is connected to close to 310 ports in 107 countries. It is one of the many corridors under the Belt and Road Initiative.
Source: Fibre2 Fashion
Argentine ambassador to India, Bangladesh, Nepal, Bhutan, Sri Lanka and the Maldives Hugo Gobbi recently suggested Bangladesh to opt for a preferential trade agreement (PTA) with the MERCOSUR, a trade bloc comprising Brazil, Argentina, Paraguay and Uruguay, as negotiations over a free trade agreement (FTA) might consume a much longer time. His comments came during a meeting between Mohammad Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), and Claudio Rozencwaig, undersecretary of foreign policy of the ministry of foreign affairs and international trade of Argentina in Dhaka. Jashim Uddin sought Argentina’s support to expedite the process of signing an FTA between Bangladesh and the MERCOSUR. Textiles are a major import item of Argentina from Asia. Rozencwaig, who led an Argentine delegation, also expressed interest in boosting bilateral relations on all fronts, according to an FBCCI press release. Jashim Uddin said the MERCOSUR region is equipped with significant dynamic markets and it can source quality products, including processed food, pharmaceuticals, plastic, ceramic and readymade garments, from Bangladesh at competitive prices, according to Bangladeshi media reports. Bangladesh is keen on signing pacts with trading partners as it is set to lose duty-free market access once it graduates from the grouping of the least-developed countries (LDC) in 2026.
Source: Fibre2 Fashion
MIT researchers develop a comfortable, form-fitting fabric that accurately recognizes its wearer’s activities, like walking, running, and jumping. Using a novel fabrication process, scientists at MIT have produced smart textiles that snugly conform to the body so they can precisely sense the wearer’s posture and motions. By incorporating a special type of plastic yarn and using heat to slightly melt it — a process known as thermoforming — the researchers were able to significantly improve the precision of pressure sensors woven into multilayered knit textiles, which they call 3DKnITS. Using this process they created a “smart” shoe and mat, and then developed a hardware and software system to measure and interpret data from the pressure sensors in realtime. The machine-learning system predicted motions and yoga poses performed by an individual standing on the smart textile mat with about 99 percent accuracy. Taking advantage of digital knitting technology, their fabrication process enables rapid prototyping and can be easily scaled up for large-scale manufacturing, says Irmandy Wicaksono, a research assistant in the MIT Media Lab and lead author of a paper presenting 3DKnITS. The technique could have many applications, especially in health care and rehabilitation. For example, it could be used to produce smart shoes that track the gait of someone who is learning to walk again after an injury, or socks that monitor pressure on a diabetic patient’s foot to prevent the formation of ulcers. “With digital knitting, you have this freedom to design your own patterns and also integrate sensors within the structure itself, so it becomes seamless and comfortable, and you can develop it based on the shape of your body,” Wicaksono says. He wrote the paper with MIT undergraduate students Peter G. Hwang, Samir Droubi, and Allison N. Serio through the Undergraduate Research Opportunities Program; Franny Xi Wu, a recent graduate of Wellesley College; Wei Yan, assistant professor at the Nanyang Technological University; and senior author Joseph A. Paradiso, the Alexander W. Dreyfoos Professor and director of the Responsive Environments group within the Media Lab. The research will be presented at the IEEE Engineering in Medicine and Biology Society Conference. “Some of the early pioneering work on smart fabrics happened at the Media Lab in the late ’90s. The materials, embeddable electronics, and fabrication machines have advanced enormously since then,” Paradiso says. “It’s a great time to see our research returning to this area, for example through projects like Irmandy’s — they point at an exciting future where sensing and functions diffuse more fluidly into materials and open up enormous possibilities.” Knitting know-how To produce a smart textile, the researchers use a digital knitting machine that weaves together layers of fabric with rows of standard and functional yarn. The multilayer knit textile is composed of two layers of conductive yarn knit sandwiched around a piezoresistive knit, which changes its resistance when squeezed. Following a pattern, the machine stitches this functional yarn throughout the textile in horizontal and vertical rows. Where the functional fibers intersect, they create a pressure sensor, Wicaksono explains. But yarn is soft and pliable, so the layers shift and rub against each other when the wearer moves. This generates noise and causes variability that make the pressure sensors much less accurate. Wicaksono came up with a solution to this problem while working in a knitting factory in Shenzhen, China, where he spent a month learning to program and maintain digital knitting machines. He watched workers making sneakers using thermoplastic yarns that would start to melt when heated above 70 degrees Celsius, which slightly hardens the textile so it can hold a precise shape. He decided to try incorporating melting fibers and thermoforming into the smart textile fabrication process. “The thermoforming really solves the noise issue because it hardens the multilayer textile into one layer by essentially squeezing and melting the whole fabric together, which improves the accuracy. That thermoforming also allows us to create 3D forms, like a sock or shoe, that actually fit the precise size and shape of the user,” he says. Once he perfected the fabrication process, Wicaksono needed a system to accurately process pressure sensor data. Since the fabric is knit as a grid, he crafted a wireless circuit that scans through rows and columns on the textile and measures the resistance at each point. He designed this circuit to overcome artifacts caused by “ghosting” ambiguities, which occur when the user exerts pressure on two or more separate points simultaneously. Inspired by deep-learning techniques for image classification, Wicaksono devised a system that displays pressure sensor data as a heat map. Those images are fed to a machine-learning model, which is trained to detect the posture, pose, or motion of the user based on the heat map image. Analyzing activities Once the model was trained, it could classify the user’s activity on the smart mat (walking, running, doing push-ups, etc.) with 99.6 percent accuracy and could recognize seven yoga poses with 98.7 percent accuracy. They also used a circular knitting machine to create a form-fitted smart textile shoe with 96 pressure sensing points spread across the entire 3D textile. They used the shoe to measure pressure exerted on different parts of the foot when the wearer kicked a soccer ball. The high accuracy of 3DKnITS could make them useful for applications in prosthetics, where precision is essential. A smart textile liner could measure the pressure a prosthetic limb places on the socket, enabling a prosthetist to easily see how well the device fits, Wicaksono says. He and his colleagues are also exploring more creative applications. In collaboration with a sound designer and a contemporary dancer, they developed a smart textile carpet that drives musical notes and soundscapes based on the dancer’s steps, to explore the bidirectional relationship between music and choreography. This research was recently presented at the ACM Creativity and Cognition Conference. “I’ve learned that interdisciplinary collaboration can create some really unique applications,” he says. Now that the researchers have demonstrated the success of their fabrication technique, Wicaksono plans to refine the circuit and machine learning model. Currently, the model must be calibrated to each individual before it can classify actions, which is a timeconsuming process. Removing that calibration step would make 3DKnITS easier to use. The researchers also want to conduct tests on smart shoes outside the lab to see how environmental conditions like temperature and humidity impact the accuracy of sensors. “It’s always amazing to see technology advance in ways that are so meaningful. It is incredible to think that the clothing we wear, an arm sleeve or a sock, can be created in ways that its three-dimensional structure can be used for sensing,” says Eric Berkson, assistant professor of orthopedic surgery at Harvard Medical School and sports medicine orthopedic surgeon at Massachusetts General Hospital, who was not involved in this research. “In the medical field, and in orthopedic sports medicine specifically, this technology provides the ability to better detect and classify motion and to recognize force distribution patterns in real-world (out of the laboratory) situations. This is the type of thinking that will enhance injury prevention and detection techniques and help evaluate and direct rehabilitation.”
Source: Sci Tech Daily
Implementation of the international tax reform agreement to ensure multinational enterprises pay a fair share of tax wherever they operate is progressing, according to an OECD report. Technical work under Pillar Two, which introduces a 15 per cent global minimum corporate tax rate, is largely complete, with an Implementation Framework to be released later this year to facilitate implementation and co-ordination between tax administrations and taxpayers. All G7 countries, the European Union, a number of G20 countries and many other economies have now scheduled plans to introduce the global minimum tax rules. According to the OECD Secretary-General Tax Report, members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) have concentrated on the practical implementation of the landmark agreement to reform international tax arrangements reached by over 135 countries and jurisdictions in October 2021. The OECD report includes a new progress report on Pillar One, presenting a comprehensive draft of the technical model rules to implement a new taxing right that will allow market jurisdictions to tax profits from some of the largest multinational enterprises. This report will now be subject to public consultation through to midAugust. The Inclusive Framework will then aim to finalise a new Multilateral Convention by mid-2023, for entry into force in 2024. This revised timeline, previously flagged by OECD secretary-general Mathias Cormann and agreed by the Inclusive Framework is designed to allow greater engagement with citizens, business and parliamentary bodies which will ultimately have to ratify the agreement. “We have made good progress towards implementation of a new taxing right under Pillar One of our international tax agreement. These are complex and very technical negotiations in relation to some new concepts that fundamentally reform international tax arrangements, to make them fairer and work better in an increasingly digitalised, globalised world economy,” Cormann said. “We will keep working as quickly as possible to get this work finalised, but we will also take as much time as necessary to get the rules right. These rules will shape our international tax arrangements for decades to come. It is important to get them right,” he said. In addition to the update on both Pillars, the report updates progress in the implementation of the Transparency Agenda. The most recent data gathered by the OECD-hosted Global Forum on Transparency and Exchange of Information for Tax Purposes shows that information on at least 111 million financial accounts worldwide was exchanged automatically between administrations around the globe in 2021, covering total assets of nearly €11 trillion. Later this year, the OECD will finalise a new Crypto-Assets Reporting Framework and amendments to the OECD Common Reporting Standard to ensure that countries can continue to benefit from tax transparency standards. The report has been delivered to G20 finance ministers and central bank governors ahead of their meeting in Indonesia later this week.
Source: Fibre2 Fashion
5 new sustainable, carbon-negative, plant-based technologies for fabrics have just been launched on the market and the busine`ss man behind the innovations, Allie Sutton, CEO of Moonlight Technologies, believes they will change the future of fashion. FashionUnited chats with Allie about why plant-based textiles are the way forward. It all started, as so many stories do, as a result of Covid. “I thought there has to be a different technology to ease the pain, one that doesn’t require throwing away single use items such as gloves and gowns,” says Sutton. “There should be a technology where the virus dies instead of the fabric.” Sutton partnered with a team of botanical scientists who had already been developing technology towards this goal. The team was headed by Dr. Phyllis Levine, global medical director, a Gynecologic Oncologist with a degree in Materials Science and Engineering from M.I.T. Bringing together her expertise and insight into both the healthcare and textile technology industries, she had been involved in the development and introduction of sustainable innovative bio-functional materials for almost a decade. Self-cleaning fabrics are the future of fashion “The future of fashion is natural dyes and products that don’t need to be washed,” says Sutton. The self-cleaning technologies are applied to fabric after the dyeing process when other treatments and finishings are added. Moonlight Technologies’ mission to use the power of nature to create a more sustainable, safer, and healthier world through plant-based innovation appeals to brands around the world who, Sutton says, are already lined up to acquire the technology. The 5 technologies are: EcoArmor, one of the world’s first sustainable, air, plastic and fabric antimicrobial technologies that kills 99.9 percent of bacteria and viruses, mold, and fungus; InsectProof, a plant-based and permethrin-free bug repellent technology for fabrics, skin, and hard-goods; MindfullyClean, a self-cleaning fabric technology which allows products treated with it to stay fresh and clean regardless of use and rarely needing to be washed; OdorSafe which permanently destroys and eliminates bad odors on fabrics; and finally, Natural Dyes, a complete range of sustainably derived, non-toxic, biodegradable colorants for hard goods and textiles. All the technology can be applied to any fabric type, both synthetic and natural. Sutton says that those who work with natural dyes know it’s almost impossible to get true dark colors, but Moonlight Technologies, as of this week, can offer a full range of natural dyes extracted from plants including one of the first natural blacks that does not come from charcoal. Synthetic dyes, which were first discovered in the 1850s, were valued for their ability to be mass produced and color textiles vibrantly, but they contain toxic chemicals that are harmful to the environment. Natural dyes which are non-allergenic and derived from plants, trees, flowers and fungi, are safe for both planet and people. Natural dyes are typically more expensive than synthetic but Sutton says Moonlight Technologies’ dyes, which are derived from a 100 percent carbon-negative process, are also competitively priced. While Sutton’s career has been based in the fashion industry, he is excited to make these sustainable solutions available to all fields of business. They could transform apparel, uniforms, home textiles, air filtration, travel, hospitality products, fitness equipment, electronics, furniture, paint, and more. Says Sutton, “A number of retailers are already incorporating our tech. We are also working with some of the world’s biggest brands who are trialing and interested in incorporating our technologies. Through this launch, we look forward to collaborating with partners in a variety of industries to begin implementing our technologies in realworld applications.” Plant-based, self-cleaning, naturally colored? It gives a whole new meaning to the term green washing.
Source: Fashion United
The team from UNSW Sydney’s Graduate School of Biomedical Engineering, and Tyree Foundation Institute of Health Engineering (Tyree iHealthE), led by Dr Thanh Nho Do, have produced a material which is constructed from tiny soft artificial ‘muscles’ – which are long silicon tubes filled with fluid which are manipulated to move via hydraulics. Australian engineers have developed a shape-shifting, smart textile that has the potential to help people with disabilities walk again. The material is constructed from tiny, soft artificial 'muscle' fibres that can turn a twodimensional material into 3D structures. The University of NSW Graduate School of Biomedical Engineering research team that developed the textile believes it will have a wide range of applications in multiple fields. Thanh Nho Do who led the project explains the material's artificial 'muscles' are long silicon tubes filled with fluid which are manipulated using hydraulics. The shape-shifting material can move like a robot and the 'muscles' can be programmed to contract or expand into a variety of shapes. Dr Do envisages the fabric could be used as a medical compression device with its thin, flexible, and highly conformable structure offering better outcomes for people needing help with movement. "We have given our smart textiles the expansion and contraction ability in the exact same way as human muscle fibres," Dr Do said. People with poor blood circulation could also benefit from smart garments that contract to apply pressure to superficial veins and help with blood supply. Athletes could also use compression garments to recover faster and reduce muscle soreness after training. Possibly the greatest benefit of the textile would be for people who are paralysed. "We envision our material could be used to develop soft exoskeletons to enable people with disabilities to walk again or augment the human performance," Dr Do said. "Most existing technologies in that field are still based around rigid robotic suits. "But it is our hope that we could create a lightweight, soft exoskeleton that looks and feels just like leggings which can be worn like normal clothing. "This could then aid those with impaired mobility to walk," he said. The project has received some funding from the National Heart Foundation as the textile has the potential to help failing hearts pump blood around the body. UNSW Professor Nigel Lovell said the textile could be used to create soft robots that can shape shift and be used as a lifting mechanism. "Such as when rescuing people from collapsed buildings or other hazardous environments, or as a soft tubular gripper - in our experiments we could lift objects around 346 times the material's own weight," he said.
Source: Murray Valley Standard
