Synthetic clothing is a huge contributor to microfibre pollution, especially in India, where synthetic apparel are capturing substantial market share. This was revealed in the first-of-its-kind research ‘Dirty Laundry: Threads of Pollution – Microfibres’ released on Thursday by environmental research organization Toxics Link. Highlighting those 124 to 308 milligrams of microfibres are released per kilogram of fabric during washing, the study found that synthetic textiles add approximately 35% to the global release of primary microplastics to the world’s oceans. “Apparel made of synthetic materials like polyester, acrylic, nylon, and others consists of plastics and denote around 60% of the clothing material globally,” the study stated. The study raises serious concern regarding microfibre pollution in India, which is the second-largest producer of polyester and viscose in the world. “The textile industry contributes 2% to India’s GDP and is one of the largest employment generators with over 45 million people under direct employment. Man-made fibre production in India has increased from 1,307 million kg in 2013-14 to 1,319 million kg in 2017-18,” the analysis stated. Though globally there is greater awareness among consumers, researchers found that the awareness in India regarding the concerns of synthetic textiles is negligible. In an earlier study done by Toxics Link, a high percentage of microfibre was found along the Ganges River in samples collected from Kanpur, Varanasi, and Haridwar. In another study by Toxics Link, water samples from Goa water treatment plant were found to have around 37 per cent of microfibre concentrations. The latest study stressed on the impact of microfibre pollution on environment and human health due to its minuscule size and capacity to penetrate different ecosystems. “When ingested, these particles can induce chemical leaching in the body, disrupting the immune system and nervous system, causing congenital disabilities and tissue damage,” it added. While globally technologies are being developed such as washing machine microfibre filters and microfibre capturing devices there has been little effort in India in this direction. “Though PET bottles to yarn are touted as a great environment-friendly option, these plastic yarns also add to microfibre pollution. The washing machines we use at home do not contain any filtration system that can filter microfibres. Thus, microfibres can easily pass through it and through the drainage system to reach rivers and the oceans,” said Priti Banthia Mahesh, chief programme coordinator at Toxics Link. The study also said that the country has no regulation or policy to check microfibre pollution caused by its mammoth textile industry. On the other hand, countries like France and the USA have mandated brands to mention the presence of synthetic material and how it will leach microfibre pollution. “It is imperative to bring together key stakeholders and institutionalise ways to curb plastic contamination across the textiles value chain. Sustainable, eco-friendly alternatives such as natural materials for clothing should be used, promoting nature-based entrepreneurship in the country,” said Satish Sinha, associate director at Toxics Link.
Source: Times of India
The meeting comes in the wake of India's exports dipping in July, the trade deficit touching a record high, and exporters raising concerns at the global slowdown impacting India's outbound shipments in the next two quarters. Commerce and industry minister Piyush Goyal is likely to meet export promotion councils on Friday to discuss the country's export performance, targets and various trade agreements India is currently negotiating. The meeting comes in the wake of India's exports dipping in July, the trade deficit touching a record high, and exporters raising concerns at the global slowdown impacting India's outbound shipments in the next two quarters. "It is a broader meeting to discuss free trade agreements, new products and markets and the overall trade scenario," said an official, adding that the ministry takes inputs from the industry regularly. India's exports shrank by 0.76% on-year to $35.24 billion in July after 16 months, but the sequential contraction was sharper at 12.18% from June. The trade deficit was an all-time high of $31 billion in the month and more-than-doubled to over $100 billion from $42.1 billion a year ago in the first four months of FY23.
Source: Economic Times
Today’s trade relations between the EU and India in textiles and clothing are characterised by a large and systemic trade deficit for the EU; annual imports from India exceed €6 bln (2021) – making it the 4th supplier – while EU exports to India reached just half a billion – the 20th place in our export markets. Against this background, the free trade negotiations are an opportunity to rebalance that relationship; European textile and clothing companies can offer high quality and innovative products for the Indian market, but they can also offer solutions to reduce the environmental footprint of the textile industry. EURATEX, as the voice of textiles and apparel manufacturers in Europe, supports an ambitious EU trade agenda, that puts reciprocity, transparency, fair competition and equal rules at the centre of its action. The FTA is an opportunity to establish a more sustainable and fair trading system, based on rules, global environmental and social standards, which are effectively respected by all. In this context, EURATEX highlights that the sector needs open and efficient markets, but combined with effective controls where necessary, thus ensuring level playing field for European companies. It is clearly essential that the same level of market access to India – both in terms of tariff and non-tariff barriers – is available to EU producers as vice versa. India today benefits from reduced customs duties due to GSP. For European companies instead, market access to India is challenging, facing non-tariff barriers (related to proof of origin, quality control procedures, etc.) as well as national or state-level support programmes which distort the level playing field between EU and Indian companies. That level playing field should also apply to our sustainability targets. As the EU will roll out its EU Textile Strategy, setting ambitious standards and restrictions (e.g. on chemicals), we must ensure the FTA is fully aligned with that strategy. Director General Dirk Vantyghem commented: “We look to these negotiations with great interest. The FTA is an opportunity to develop a shared ambition between the European and Indian industry to make sustainable textiles the norm, and to create a regulatory framework where our companies can compete in a free and fair environment.”
Source: Textile World
The National Small Industries Corporation, a PSU under the Ministry of Micro, Small and Medium Enterprises (MSME) facilitates e-marketing service to MSMEs across the country through MSME Global Mart Web Portal to enhance their business. The salient features of the portal include online registration, web store management, showcase products & services, keyword based tender alert, business trade leads, award of contract information, etc. Further, the Khadi and Village Industries Commission (KVIC), a statutory body, under this Ministry established an e-commerce portal namely ‘ekhadiindia.com’ to support the online marketing facilities for its stakeholders. This portal opens new avenues for KVI micro businesses and allows a business to reach its customers in wide range of ways viz. website, email, live chat, blog, forums, etc. To boost the MSME sector, the Ministry of MSME implements various schemes and programmes namely, Prime Minister’s Employment Generation Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Entrepreneurship and Skill Development Programme (ESDP), etc. This information was given by Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Lok Sabha
Source: PIB
In its latest External Sector Report, IMF said India should further liberalise its investment regime accompanying it with reduction in tariffs, especially on intermediate goods To maintain external sector balance at a comfortable level over the medium term, the International Monetary Fund (IMF) has recommended that India should gradually withdraw its fiscal and monetary policy stimulus, develop export infrastructure, and negotiate free-trade agreements with key trading partners to provide a sustainable boost to exports. In its latest External Sector Report released on Thursday, IMF said India should further liberslise its investment regime accompanying it with reduction in tariffs, especially on intermediate goods. “Structural reforms could deepen integration in global value chains and attract FDI, hence mitigating external vulnerabilities. Exchange rate flexibility should act as the main shock absorber, with intervention limited to addressing disorderly market conditions,” IMF said. The IMF said India’s external position in FY22 was broadly in line with the level implied by medium-term fundamentals and desirable policies. “Running current account deficits is broadly consistent with India’s level of per capita income, favourable growth prospects, demographic trends, and development needs. External vulnerabilities stem from volatile global financial conditions and significant increases in commodity prices,” it said. The multilateral lending agency projected India’s current account deficit (CAD) to widen to 3.1 per cent of GDP in FY23 from 1.2 per cent of GDP in FY22. “In part reflecting the impact of the war in Ukraine on oil prices, the CAD is projected to widen in fiscal year 2022-23 but then stabilise over the medium term. The authorities have made some progress in external trade promotion and the liberalization of FDI and portfolio flows, but the existing tariff structure remains broadly unchanged,” it said. As of the end of 2021, IMF said India’s net international investment position (NIIP), which is the difference of the country’s external financial assets and liabilities, had improved to –11.1 per cent of GDP from –13.5 per cent of GDP at the end of 2020. “This reflected a relatively low CAD (amid the Covid-19 pandemic) and the accumulation of reserve assets. Gross foreign assets and liabilities were 30.5 per cent of GDP and 41.7 per cent of GDP, respectively. The bulk of assets were in the form of official reserves and (outward) FDI, whereas liabilities included mostly FDI and other investments,” it said. India’s external debt liabilities are moderate compared with peers, and short-term rollover risks are limited, IMF said. “The moderate level of foreign liabilities reflects India’s incremental approach to capital account liberalization, which has focused primarily on attracting FDI. While FDI inflows covered the CAD in FY22, structural reforms and improvement of the investment regime to promote FDI are needed. Volatile portfolio investments are very sensitive to changes in global financial conditions and country risk premia. Expected inclusion of India in international bond indices should increase portfolio investment inflows for financing the CA deficit over the medium term,” it added. The IMF said an unusual period of current account surpluses in 2020 and early 2021 allowed the Reserve Bank of India to replenish official forex reserves, which reached a record high of about $638.5 billion at the end of 2021. The reserves decreased in subsequent months but remained at a comfortable level of about eight months of import coverage. “Various criteria confirm that official forex reserves are adequate for precautionary purposes. As of the end of 2021, they represented about 223 per cent of short-term debt (on residual maturity) and 195 per cent of the IMF’s composite metric. Consequently, accumulation of additional reserves is less warranted, and forex interventions should be limited to addressing disorderly market conditions,” it said.
Source: Business Standard
Amidst the economic slowdown in the western countries, the demand for industrial products nationally and internationally has gone down. This in turn has resulted in huge losses for the industrial units in Haryana. As per the report by the Hindi daily Dainik Bhaskar, the foreign textiles business in Panipat has fallen by 50 per cent whereas in Rohtak, the orders for automobile parts and nut-bolts from the local markets have come down by 80 per cent. While export orders have come down to Rs 8,000 crore annually from Rs 20,000 crore, exporters now send two containers in a week instead of ten containers previously, the report added. The domestic market has soared to Rs 54,000 crore from over Rs 90,000 crore. The dyeing units in the state are shutting down on a rapid speed as the textile sector has witnessed nearly 75,000 job losses while almost 90,000 people have taken a salary cut of 40 per cent. In sonipat, around 20,000 people in the textile industry have lost their job. The dyeing unit has been running for only five days now, while due to the burning of the furnace, three shifts have been reduced to two, Dyers Association president Bhim Singh Rana told DB, adding that due to less work, a four-day work week is being considered. “Due to inflation in the US and the Russia-Ukraine war, the export of home furnishing has come to a standstill, exporter Vinod Dhamija, custodian exporter of the Old Industrial Area Manufacturers Association. This has resulted in more than 30 per cent of the employees leaving the industry, and those who were retained took a salary cut”, he added. Due to the decreasing demand, the medical, food and steel industries in Sonipat are now operating on one shift. This has forced around 20,000 people to lose their job
Source: KNN India
Signing of MoUs to accelerate industrial growth in the State Proposals worth ₹10 trillion are lined up ahead of the “Invest Rajasthan-2022” summit to be organised in Jaipur in October, promising to take the State to a new phase of industrialisation. The memorandums of understanding (MoUs) are likely to be signed during the mega event which will pave the way for creation of infrastructure and accelerate industrial growth. Deliberations on varied sectors Industries Minister Shakuntala Rawat said here on Thursday that the summit, to be held on October 7 and 8, would witness deliberations on varied sectors in the conclaves on start-ups, agro-processing, future-ready sectors, tourism and micro, small and medium enterprises. The two-day event will host about 3,000 delegates from India and abroad. The summit, originally scheduled for January 24 to 25, was deferred to October because of the pandemic. The motto of the event is “committed and delivered”, while institutions such as Bureau of Investment Promotion and Rajasthan Small Industries Corporation are assisting the State government in organising the summit. Ms. Rawat said the investment proposals had arrived in the State across several sectors, following the advantages of land, resources, infrastructure and policies. A large number of proposals have been given clearance. “Along with several multinational and Indian investors, the summit has also attracted proposals from local entrepreneurs, assuring the development of a conducive ecosystem for industries,” Ms. Rawat said. The Minister said as many as 4,192 MoUs had been signed at the investor-connect programmes and start-up conclaves and the State government wanted to have most of the MoUs and letters of intent on the ground before the summit. Over 40% of the MoUs have already been implemented or are in the advanced stage of setting up their ventures in the State. The MoUs signed are mainly in the mines and minerals, agro-processing, tourism, textiles, engineering, chemicals and petrochemicals, medical and health, logistics, energy and handicraft sectors. Additional Chief Secretary (Industries) Veenu Gupta said the summit would address the “new age agendas” pertaining to a variety of sectors. The investors are stated to be getting attracted to Rajasthan because of the advantages of human capital, rapid infrastructure development, market access, the country’s largest industrial land bank and the investment incentives. The State government has established facilities such as one-stop shop and have formulated policies for time-bound setting up of new units.
Source: The Hindu
India Ratings chief economist DK Pant said while trade deficit may ease a tad in August from the previous month, oil price movement will determine the course of the deficit in the coming months. Having hit a record $31 billion in July, India’s trade deficit may narrow a tad in August, as the windfall tax on exports of certain petroleum products has been cut and the government directive on mandatory coal imports by power generators (gencos) has been relaxed, official sources and analysts told FE. So, while petroleum exports may reverse a drop witnessed in July and record growth in August, the persistent surge in coal imports may lose some steam. On top of that, any reduction in the elevated export duties on select steel products and iron ore will also help boost exports. One of the sources said a review of these duties is being planned. Nevertheless, thanks to a “blow-up” in July, trade deficit in the second quarter could still exceed the June quarter level of $69 billion, some of them said. This will keep up pressure on the current account deficit (CAD), which is expected to climb to 3-3.3% of GDP in FY23, compared with 1.2% in the last fiscal. A lot, however, hinges on the movement of global commodity prices, especially of oil, as key central banks have started raising interest rates aggressively, they added. The windfall tax on exports of petroleum products, introduced from July 1, on top of elevated export duties on steel products and iron ore, weighed down exports in July. It was the first monthly fall in merchandise exports since February 2021, albeit on an unfavourable base. According to the commerce ministry data, exports of petroleum products declined 7% on year in July to $5.8 billion; such exports had grown by 119% in June. Sequentially, these exports crashed almost 33% in July from the June level. Similarly, exports of iron ore crashed by 94% on year in July and those of iron and steel products dropped 2.5%. Meanwhile, coal imports spiked 164% in July to $5.2 billion. The government had on May 22 raised the export duty on iron ore to 50% from 30%. An export duty of 45% was imposed on iron ore pellet, while that of 15% was slapped on select steel products. However, some relief to petroleum product exporters came on Wednesday when the government halved the windfall tax on the export of diesel and scrapped the impost on ATF shipments. Separately, it also revoked an earlier order to gencos to “mandatorily” blend imported coal with the domestic variety, which had caused a spurt in imports of the commodity. Goods trade deficit in July widened to a record high of $31 billion, up from $10.6 billion a year earlier and higher than $25.6 billion in June. Trade deficit will likely remain above $20 billion for an extended period and pose the risk of a wider CAD, Barclays said. “While we still expect the trade deficit to hit $265 billion, the risks are skewed towards an even larger deficit, which poses risks to our forecast for the current account deficit to widen from the present $115 billion for FY23,” said Rahul Bajoria, chief India economist at Barclays. Icra chief economist Aditi Nayar said the trade deficit may have peaked in July and added that lower commodity prices should temper the deficit in August. However, the Q2 trade deficit would be higher than that in Q1, she added. The momentum in merchandise and services exports in the face of the global slowdown fears remains crucial to the trade deficit movement, she added. India Ratings chief economist DK Pant said while trade deficit may ease a tad in August from the previous month, oil price movement will determine the course of the deficit in the coming months. “The reduction of windfall taxes may lead to a slight rebound in oil exports, but we expect the current account deficit to remain on a deteriorating path in the next few quarters, due to steady domestic demand, inelastic demand for select commodities and a global growth slowdown,” analysts at Nomura wrote in a note. Nomura forecasts a widening of the CAD to 3.3% of GDP in FY23.
Source: Financial Express
With this agreement, Reliance Brands will be Balenciaga's sole India partner to launch the brand in the country Reliance Brands has signed a long-term franchise agreement with global luxury brand Balenciaga, it announced on Thursday. With this agreement, Reliance Brands will be Balenciaga’s sole India partner to launch the brand in the country. This will be Reliance Brands’ second partnership with Kering, the parent group of Balenciaga, Reliance Brands said in a release. The agreement comes after it recently signed a long-term distribution agreement with Italian fashion house Maison Valentino. Balenciaga was founded by Spanish-born Cristóbal Balenciaga in 1917 and established in Paris in 1937. Since his appointment as artistic director in 2015, Demna Gvasalia continues to uphold the brand’s vision through boundary-pushing collections, which have expanded to include women’s and men’s ready-to-wear, accessories and objets d’art, Reliance Brands said. “Few brands have actually embraced the opportunity for creative reinterpretation and reinvention quite like Balenciaga. Their avant-garde and ingenious creations, bold use of the logo, and a consequent cult in the fashion industry has already created a strong footing throughout the world. It’s the most opportune time to introduce the brand to the country as the Indian luxury customer has matured and is using fashion as a form of creative expression of their individuality,” said Darshan Mehta, MD of Reliance Brands. Reliance Brands is a subsidiary of Reliance Retail Ventures — the retail arm of billionaire Mukesh Ambani’s Reliance Group. It began operations in 2007 with a mandate to launch and build global brands in luxury to premium segments across fashion and lifestyle.
Source: Business Standard
President Abdel Fattah Al-Sisi expressed his support towards the promotion of Egypt’s textile and readymade clothing industry at a recent meeting with his ministers. The country’s minister of public enterprise Hisham Tawfik also assessed their plans to set up the largest spinning factory in the world in the city of Mahalla. The factory will be inaugurated in 2023 and will cover an area of 62,000 sqm. The factory in Mahalla will be equipped with the latest industrial machinery similar to what major international companies use and deal with different types of cotton, especially long staple and extra-long cotton. It is intended to leverage Egypt’s competitive advantage in global cotton production thanks to its high quality and demand in international markets. At the meeting, Tawfik mentioned in detail about a company formed by his ministry that was established especially for the marketing, sales, and supply chain management of Egyptian textile products. President Al-Sisi also reviewed samples of the luxury cotton textiles presented to him that the company had been marketing. There were also discussions about implementing a bidding system for Egyptian cotton in collaboration with the Egyptian Commodity Exchange at the meeting.
Source: Fibre2 Fashion
Bangladesh's economy will return to old track soon after overcoming challenges posed by the COVID-19 pandemic and the Russia-Ukraine war, according to finance minister AHM Mustafa Kamal, who recently said high inflation in the country, which is due to the increase in the prices of goods in the international market, may become normal soon. He said this after the meetings of the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Government Procurement (CCGP). The price of the US dollar in the country will come down soon as well, he said. Inflation in the country has increased as many products are bought from European countries, where inflation is high, he was quoted as saying by Bangladeshi media reports. Kamal said there is no scope to raise interest rates in the country. "That is why inflation is controlled through different types of management. Various initiatives have been taken to control imports including increasing duty, and the LC [letter of credit] margin," he added.
Source: Fibre2 Fashion
Economic activity in the manufacturing sector grew in July, new data shows, with the overall economy achieving a twenty-sixth consecutive month of growth. US supply executives offered their thoughts on raw material prices in the latest ‘Manufacturing ISM Institute for Supply Management (ISM) Report On Business. Those in the textile industry reported a continued increase in the price of raw materials. The ISM Prices Index registered 60% in July, 18.5 percentage points lower compared to the June reading of 78.5%, indicating raw material prices increased for the twenty-sixth consecutive month, albeit at a much slower rate. The Prices Index has been at or above 60% for 23 straight months. The month-overmonth decline of 18.5 percentage points is the fourth biggest decline on record (since 1948) and the steepest since a 22.1-percentage point drop in June 2010. “The slowing in price increases is being driven by volatility in the energy markets, softening in the copper, steel, aluminium and corrugate markets and a significant decrease in chemical demand,” explained Timothy Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. Notably, 21.5% of respondents reported paying lower prices in July, compared to 8.3% in June,” continued Fiore. A Prices Index above 52.6%, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials. In July, 12 of 18 industries reported paying increased prices for raw materials, with textile mills among them. Despite this, 11 manufacturing industries reported growth in July, with apparel, leather and allied products seeing the most growth of those industries. Textile mills also reported growth. Overall, the July Manufacturing PMI registered 52.8%, down 0.2 percentage point from the reading of 53% in June. This figure indicates expansion in the overall economy for the twenty-sixth month in a row after a contraction in April and May 2020. This is the lowest Manufacturing PMI figure since June 2020, when it registered 52.4%. Meanwhile, the New Export Orders Index reading of 52.6% is up 1.9 percentage points compared to June’s figure of 50.7%
Source: Just-Style
Bangladesh's economy will return to old track soon after overcoming challenges posed by the COVID-19 pandemic and the Russia-Ukraine war, according to finance minister AHM Mustafa Kamal, who recently said high inflation in the country, which is due to the increase in the prices of goods in the international market, may become normal soon. He said this after the meetings of the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Government Procurement (CCGP). The price of the US dollar in the country will come down soon as well, he said. Inflation in the country has increased as many products are bought from European countries, where inflation is high, he was quoted as saying by Bangladeshi media reports. Kamal said there is no scope to raise interest rates in the country. "That is why inflation is controlled through different types of management. Various initiatives have been taken to control imports including increasing duty, and the LC [letter of credit] margin," he added.
Source: Fibre2 Fashion
Vietnam's textile exporters expect to earn $45.7 billion this year amid decent business since the year started and positive market developments. As of mid-July, garmenttextile was among the four sectors posting high export revenues, with a record of $20.4 billion--up by 19.7 per cent year on year (YoY), according to the general department of Vietnam customs. Garment-textile was also among the six groups whose export value increased by over $1 billion, the authority was quoted as saying by a news agency. Some 14,000 businesses are operating in the sector, with a combined capital of more than $46 billion. These employ nearly 200,000 labourers. The Vietnam Textile and Apparel Association (VITAS) had earlier said textile-garment producers aim to earn up to $21 billion from exports in the second half this year, raising total shipments of the year to around $42-43 billion. The industry, which has gradually recovered this year, witnessed a trade surplus of $8.86 billion in the first half of the year.
Source: Fibre2 Fashion
