Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textile Shri Piyush Goyal reviewed the Export scenario in his interaction with Export Promotion Councils (EPCs) and representatives of Industry associations at New Delhi today. Shri Goyal emphasized on a ‘Whole of Govt’ approach to boost exports. The Minister said this would require exporters, EPCs, Govt Agencies & Indian Missions abroad to work together. Recognizing the crucial role played by EPCs and Industry, Shri Goyal remarked that EPCs & Industry Associations are key to realise “Local goes Global: India makes for the World”. Speaking to EPCs and Industry representatives, Minister stated that the ball is in our court and we have to be ready to take on global competition. He said that Government is doing its best through various measures to support Indian exporters to compete globally. Enumerating initiatives taken, he highlighted that with Gati Shakti, government is improving connectivity and logistics. Government is also negotiating to sign more FTAs with important trade partners. This will have a direct impact in providing a level playing field in international markets, he added. He emphasized that everybody will have to work hard to achieve true potential of India in terms of global trade. Expressing confidence that we are on track to meet expectations of Prime Minister Shri Narendra Modi, Shri Goyal said that the country touched highest ever merchandise exports of $ 422 billion and all-time total exports of $ 667 billion - an increase of 34.5% over FY 21. By July’22, exports have reached $156 bn (19% higher) – Engineering goods exports $38 bn (8% higher); Readymade garment (22% higher). Agri exports grew by almost 20% till July’22, driven by rice, marine products & sugar. Stating that the Government has been increasing its international engagement, the Minister underlined the importance of Free Trade Agreements (FTAs). In this context, he urged the industry representatives to study FTAs and identify the areas which have competitive advantage. He hoped for an agreement on a multidimensional partnership with UK this year. Minister also appealed to representatives from the industry to take advantage of PM Gati Shakti, PLI, NSWS, EoDB reforms to improve export competitiveness wrt to other manufacturing powerhouses.
Har Ghar Tiranga campaignCommerce and Industry Minister urged all the stakeholders in the export ecosystem to take the message of Har Ghar Tiranga to every nook and corner of the country. He urged industry to unite and work together to keep our flag flying high and make this campaign a grand success. Textile Secretary Shri U P Singh informed that the Ministry is working with a select group of private companies to supply 6 crore flags to state governments and Department of Post by 12th August. He said 5.12 crore flags have already been produced.
One District One Product (ODOP) During the interaction today, Minister launched the ODOP catalogue of over 300 products. He appealed to the people to use ODOP portal and buy products from there. This will directly help Indian artisans and families and also help revive dying arts of India. He mentioned that PM has repeatedly asked the nations to use these ODOP products as festival gifts and cooperate gifts, and PM himself uses these products for gifting purposes.
Master Database of all Associations/EPCs- Shri Goyal asked all stakeholders to prepare a database of the industry associations/EPCs over the country along with their members, employees & other basic details. Presentation was made on National Single window system. This scheme is being run by Ministry of Commerce and Industry to facilitate ease of doing business. Since its inception last year, 10k approvals have already been given under it. In his initial presentation Commerce Secretary Shri B V R Subramanyam said that all stakeholders in the export ecosystem worked really hard last year and achieved the target 9 days ahead of scheduled end of the year. He said that everyone will have to contribute to keep the momentum going.
Source: PIB
Although goods and services (GST) collections have improved, there's potential for this to be stepped up further, Modi said at the seventh meeting of the Niti Aayog's governing council on Sunday. India's upcoming G20 presidency in 2023 is a unique opportunity to show that the country is not just Delhi but every state and UT as well, Modi said. Prime Minister Narendra Modi urged states to focus on reducing imports and increasing exports, asking them to identify opportunities and encourage people to use locally made goods as much as possible. His reiteration of the 'vocal for local' call has come amid a burgeoning trade deficit and concerns over the widening current account deficit. Although goods and services (GST) collections have improved, there's potential for this to be stepped up further, Modi said at the seventh meeting of the Niti Aayog's governing council on Sunday. India's upcoming G20 presidency in 2023 is a unique opportunity to show that the country is not just Delhi but every state and UT as well, Modi said. He called on states to set up dedicated G20 teams to derive the maximum possible benefit from the presidency. India's merchandise trade deficit hit a record high of $31 billion in July, stretching the overall difference between exports and imports to over $100 billion in the first four months of the fiscal from $42 billion a year ago. The PM said states must focus on reducing imports, increasing exports and identifying opportunities for this, according to the statement isued by the Niti Aayog. "We should encourage people to use local goods wherever possible," he said. Vocal for local is not the agenda of one political party but a common goal, the PM told the states, according to the statement. He added that each state should LETTER focus on promoting the three Ts - trade, tourism, technology - through Indian missions abroad. Modi said India needs to focus on modernised agriculture, animal husbandry, and food processing to become selfsufficient and a global leader in the agriculture sector. He asked states to focus on making India self-sufficient in edible oil production. India remains the world's largest importer of edible oil and is heavily dependent on imports. This, along with petroleum crude and gold, is among the country's biggest import items. "The Centre is targeting to reduce its edible oil import by half in the next five years," Niti Aayog member VK Paul said, briefing the media after the meeting. The states demanded an increase in the minimum support price for pulses and oil seeds to promote their cultivation at the meeting, he said. Modi said GST can yield more after the monthly collection touched the second highest ever at Rs 1.49 lakh crore in July. "Increasing GST collection requires collective action by the Centre and states," he said. "It is crucial for strengthening our economic position and becoming a $5 trillion economy." The first physical meeting of the council since the onset of the pandemic was attended by 23 chief ministers, three lieutenant governors, two administrators and Union ministers. Bihar chief minister Nitish Kumar and Telangana chief minister K Chandrashekar Rao did not attend. Cooperative federalism Modi heralded cooperative federalism as the force that helped India cope with the Covid pandemic. "Every state played a crucial role according to its strength and contributed to India's fight against Covid," he said. "This led to India emerging as an example for the developing nations to look up to as a global leader." Rapid urbanisation can become India's strength instead of weakness by leveraging technology to ensure ease of living, transparent service delivery, and improvement in the quality of life for every citizen of urban India, he said, according to the Niti Aayog statement.
Source: Economic Times
Union Minister of Commerce and Industry; Consumer Affairs; Food and Public Distribution and Textiles, Shri. Piyush Goyal unveiled the digital version of the ODOP gift catalogue. The digital launch took place during the meeting with Export Promotion Councils and Industry Associations at Vanijya Bhawan on 5th August 2022. The ODOP gift catalogue includes a wide range of products like Fragrances and Oils, Indian Spirits, Home Décor products, Fabrics, and Silks and Shawls. HCIM highlighted the ways in which the ODOP gift catalogue is a step towards realizing the potential of all districts in India and will give global recognition to the country’s diverse indigenous products. Further, he urged all the line ministries, Industry Association, and Export Promotion Councils to utilize products from the catalogue for encouragement to designs and branding. He also recommended a conscious effort to be taken to include these treasures of India for corporate gifting. This will provide a tremendous boost to the local economy and will help promote the livelihood and sustenance of many farmers and artisans. Minister highlighted that utilizing products from the catalogue will promote a brand image for local products in the international market, consequently boosting the Prime Minister’s vision of “Make in India” and “Make for World”. He also requested all the associations to share their feedback on each of these products to ensure continuous improvement so that the products can compete at a global level.
ODOP Background:
• The ODOP Initiative is aimed at achieving the vision of the Hon’ble Prime Minister to foster balanced regional development across all districts of the country.
• The idea is to select, brand, and promote One Product from each District (One District – One Product) of the country for enabling holistic socio-economic growth across all regions.
• The range of chosen products under ODOP, from all 761 districts of the country, spans multiple sectors, Ministries and Departments.
Source: Orissa Diary
Textile Secretary UP Singh has said that the Indian textile industry should focus more on sustainability and circularity. Sharing the example of Bangladesh apparel industry, he said that Bangladesh has around 160 green factories, and India should also work in this direction more effectively. “Landfill is a major issue and with textile being one of the most polluting industries,textile companies should do their best for sustainability. Sustainability and circularity in the textile ecosystem also need to be developed,” he said. Speaking at the inauguration ofthe Gartex Texprocess event in Delhi, the Textile Secretary urged the industry to work on MMF, as apparel brands areglobally more tilted towards polyester now. “We are supporting the industry at the policy level be it through PM MITRA scheme, technical textile mission and initiatives like PLI.However, it is now the industry that has to perform. If we have to do well in export, MMF should be the focus of Indian companies,” he said. He added that India’s textile industry performed well in export in the last fiscal,and to continue doing well in export, India needs to increase its MMF product base.Besides, he also highlighted that there is limited productivity in cotton output, and so the use of MMFshould increase. The Textile Secretary added “The Indian Government is working towards upscaling the size and the scale of the textile industry through policies such as the mega textile park, which is aimed at solving the problem of the fragmented value chain and scale. We are also focusing on incentivising textile machine manufacturing to encourage foreign manufacturers to build textile machinery within India.”
Source: Apparel Resources
India-Mauritius merchandise trade rose to $786.72 million in fiscal 2021-22 from $690.02 million in fiscal 2019-20. Both sides recently agreed to enhance collaboration to further increase bilateral trade and realise the true potential of the relationship, especially under the India-Mauritius Comprehensive Economic Cooperation and Partnership agreement (CECPA). Both the countries recently held the 1st session of India-Mauritius High-Powered Joint Trade Committee in New Delhi. The meeting was co-chaired by Srikar K Reddy, joint secretary in the Indian department of commerce, and Narainduth Boodhoo, director of trade policy for regional integration and international trade at Mauritius’ ministry of foreign affairs. The committee had been constituted as per the mandate of the CECPA, which entered into force on April 1, 2021, to review its general functioning and implementation. The CECPA is the first trade agreement signed by India with a country in Africa. Both sides agreed to the inclusion of the general economic cooperation (GEC) chapter and automatic trigger safeguard mechanism (ATSM) in CECPA, according to an official release from the Indian government. The GEC chapter will enable enhancement of export competitiveness and enlarging the existing scope for collaboration in investment, financial services, textile, small and medium enterprises, handicrafts, port infrastructure and renewable energy among other sectors. Both the sides expressed willingness to enter into a Customs Mutual Administrative Assistance Agreement (CMMA) and agreed to initiate discussions on that soon.
Source: Fibre 2 Fashion
Committee further said that department need to take up with the union finance ministry in right earnest to make good on its own suggestion The Parliamentary panel on Labour, Skill and Textiles has expressed concern that despite the government’s claim of enhancement in the stipend amount to Rs 9000 per month for graduate apprentices and Rs 8000 per month for diploma apprentices, they were being paid stipend as per the old rate of Rs 4984 per month and Rs 3542 per month respectively. In its report, the standing committee of the union ministry of Skill Development and Entrepreneurship flagged its “deep concern” in its report. The report is subsequent to the government’s report of action taken on the committee’s recommendation in the matter. The committee, headed by Bhartruhari Mahtab, had in recommended for enhancement in the stipendiary provision in its earlier report. The recommendation was under the rubric of the ‘Implementation of National Apprenticeship Promotion Scheme (NAPS)/National Apprenticeship Training Scheme (NATS)’ relating to the Ministry of Skill Development and Entrepreneurship and Ministry of Education (Department of Higher Education). In their Action Taken Note furnished to the committee, the Department of Higher Education noted that the recommendation had been implemented with effect from April 1, 2021. In response, the parliamentary body has taken a dim view. Further, it broadened the focus of the arch light, noting that it becomes imperative on the part of the Department of Higher Education to ensure that all the graduate and diploma apprentices are invariably paid the “revised stipend amount with retrospective effect from 1st April, 2021”. The committee further said that the department need to take up with the Union Finance Ministry in right earnest to make good on its own suggestion that it would be appropriate to enhance the stipend amount to Rs 18000 per month for graduate apprentices and Rs 15000 per month for diploma apprentices.
Source: Tribune India
In a letter to Union Minister for Textiles Piyush Goyal on the eve of National Handloom Day on August 7, Rama Rao, popularly known as KTR, said that the Centre has not done anything for the textile and handloom sector in Telangana. Telangana Industries Minister K T Rama Rao has accused the Union government of neglecting the textile and handloom sector and demanded the removal of all taxes, including GST, on textiles. In a letter to Union Minister for Textiles Piyush Goyal on the eve of National Handloom Day on August 7, Rama Rao, popularly known as KTR, said that the Centre has not done anything for the textile and handloom sector in Telangana. KTR said Saturday that the Modi government’s disdain for the textile sector, which provides employment to the largest number of people in the country after agriculture, was very unfortunate. KTR also sought the Central Government’s support for the state’s textile and handloom sector. In an official statement listing out the state’s demands, Rama Rao sought funds for Kakatiya Mega Textile Park, and for the upgradation of power looms. He also sought the establishment of the Handloom Export Promotion Council and the National Textile Research Institute in Hyderabad apart from the Institute of Handloom Technology. He also demanded the establishment of 15 block-level handloom clusters and a mega power loom cluster in Sircilla. Continuing his attack against the Centre, KTR said that the textile sector is in the doldrums in the country only due to the lopsided policies of the BJP-led Union government. The BJP government has not provided any additional financial assistance to the state’s textile and handloom workers, he said. “Instead of giving false statements about the Centre’s help to Telangana Textile and Handloom sector, the Prime Minister and the other central Ministers should sincerely try to extend their help to the weavers of the state,” he added. KTR claimed the TRS government has given utmost importance to the welfare of the weaving community in the state and taken many proactive measures to strengthen the sector since it came to power in 2014, whereas, the Centre’s apathy towards the textile and handloom sector is weakening it. Last week, KTR had announced the launch of the state’s ‘Nethanna Beema’ scheme on National Handlooms Day under which as many as 80,000 handloom and power loom weavers of Telangana will be extended a free life insurance cover of Rs 5 lakh. The family of the deceased would receive Rs 5 lakh and the amount would be credited into the bank account of a family member within 10 days of the death, he had said. The BJP’s Telangana unit president Bandi Sanjay hit out at KTR over his allegations by listing the Central Government’s schemes for the sector. Taking to Twitter, Bandi Sanjay said that the Centre has released Rs 6.3 crore under the Comprehensive Handloom Cluster Development Scheme for 15 clusters (two in Karimnagar) from 2015-16 to 2021-22. And another Rs 4.83 crore under the National Handicraft Development Program has been given over the past three years, added Bandi. “Dear Son of a CM – sometimes care to read facts. Central government led by Hon’ble PM Shri @narendramodi ji has always gone above and beyond for the welfare of weavers and artisans of Telangana,” tweeted the BJP leader. “And we are not done yet, Hon’ble PM Shri @narendramodi ji announced Mega textile park and when #DoubleEngine govt of @BJP4India comes to power more are on anvil taking handloom and textiles sector to next level,” he added.
Source: Indian Express
Reliance Industries Limited (RIL) has reduced the price of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT for the coming week. RIL is the largest manufacturer of PSF and its raw materials PTA, MEG and MELT in India, so the market follows its prices. The prices are also influenced by fluctuation in China, where downtrend was noticed. According to market sources, RIL has decreased PTA price by ₹2.90 to ₹85.20 per kg. MEG was priced at ₹53.670 per kg with cut of ₹2.30 per kg, while MELT was priced at ₹91.53 per kg with decline of ₹3.28 per kg. The company has revised prices with effective from August 6, 2022. RIL will revise price of Polyester Spun Fibre (PSF) in mid- August. It had earlier fixed prices of PSF at ₹120 per kg. The company revises PSF prices fortnightly. MEG prices turned to bearish in China since the beginning of this month. According to Fibre2Fashion’s market insight tool TexPro, the prices of MEG came down to $4138 per ton in Chinese domestic market from a high of $4393 per ton on July 29, 2022. PTA came down to $6045 per ton from $6075 per ton noted on August 3. The decline in prices of raw materials of polyester is also attributed to weaker crude oil.
Source: Fibre 2 Fashion
Entrepreneurship leads to direct and indirect employment, generates income, and creates assets, giving a boost to economic development. India’s current population is estimated to be a little over 1.4 billion and roughly 64% of that – or about 900 million – falls in the working age cohort. Every year, however, a little over 10 million youth join the workforce. This is a matter of concern as the labour force participation rate (LFPR) in India has been less than 50% for a long time and the employment statistics have not improved. These challenges have been further magnified due to the impact of the pandemic and while India’s economic activity has returned to normal now, the jobs lost during the pandemic have not come back. A low unemployment rate and a higher labour force participation can supercharge India’s economic growth. What can policymakers do to ensure that the country can achieve these goals? The Indian government understood the importance of skilling and the youth joining the workforce quite early; it introduced the Skill India Mission to provide training for youth and align them with the job requirements of the economy. The skilling programs have grown over the years – more than 40 skill development schemes across 20 central ministries/departments are being implemented currently. These schemes have already trained over 55 million youth. There is, however, a need to link these schemes to livelihood opportunities, beyond jobs. Meanwhile, it is not just formal skill development programs that equip the workforce with the necessary expertise. The informal economy of our country has a wide spectrum of skills, consisting of workers like street vendors, construction workers etc., who learn through experience and informal training. There are traditional apprenticeships and artisans who inherit legacy skills. However, despite being core members of a productive economy, informal workers are not adequately paid/rewarded, and their skills are not recognized. As a result, the younger generations of various artisanal communities are moving to alternative sources of income and many traditional crafts/arts/skills are vanishing. Entrepreneurship development can be seen as the solution to various issues ranging from youth unemployment, reducing female labour force participation rate, low wages of informal sector workers, and disappearance of traditional arts and crafts, among others. It can become a prominent source of livelihood for skilled youth coming out of the skill training programs, women artisans, artisan groups and workers from the informal sector. Entrepreneurship has the ability to create direct and indirect employment, generate income, and create assets in rural, urban, and tribal contexts, thus acting as a potent factor for economic development. India’s entrepreneurship ecosystem, especially targeted at individuals at the grassroots level, currently is largely disaggregated and lacks standardization. Many ministries and departments are implementing entrepreneurship-related schemes, but these are all focussed on select elements of the entrepreneurial value chain. Some initiatives provide only training, while others provide support in the form of collateral-free loans, grants, toolkits, etc. But there is no one-stop solution or platform that provides all the necessary support to potential microentrepreneurs, especially in rural and periurban areas. Standardization is also required in different elements of the value chain of the entrepreneurship ecosystem ranging from training curriculum, related infrastructure and mentoring framework to opportunities for credit and market linkage and tracking mechanism. India is a hugely diverse country and its entrepreneurs also have to deal with unique cultural and geographical nuances and sector-specific requirements. This multi-dimensional complexity requires a level of uniformity in the framework so that holistic solutions can be designed. While it is a complex task, but definitely not an insurmountable issue. A thriving ecosystem needs to be created by dismantling the silos and aggregating enabling services for entrepreneurs. The existing skilling infrastructure and network need to be leveraged to create entrepreneurship development capacity for the beneficiaries including formally skilled youth and communities with informal or legacy skills. A few focussed steps and the use of technology can help in getting the best bang for the buck. Solutions for enabling the creation of the envisaged ecosystem should include: 1.Single platform for aggregating all credit avenues (grants, loan and subsidy schemes, CSR funds, microfinance institutions, etc.) and market linkage options (e-commerce, retail stores, exhibitions, and haats) available for microentrepreneurs. Currently, many aspiring entrepreneurs depend on family and friends for credit support or have limited access to microfinance institutions in their region. Similarly, they do not have access to markets for selling their products and services. Therefore, it is essential to provide an array of credit and market linkage options on a common platform. As Open Network for Digital Commerce (ONDC) gains momentum, integrating microentrepreneurs with ONDC can help them get on online platforms and create new opportunities. 2.Network of mentors across geographies, trades and expertise, to provide handholding support to aspiring and existing entrepreneurs. The mentors can provide much-needed support in areas like business idea identification, business plan creation, loan applications, linking entrepreneurs with relevant industry stakeholders, leveraging government schemes/programs, etc. Continued support throughout the entrepreneurial journey of the beneficiaries is imperative to ensure the sustainability of their enterprises. 3.Digital platform to support the entire value chain for an entrepreneur’s journey would ensure transparency and make them and their services more discoverable. For instance, an artisan registry will provide artisans across all states a platform for showcasing their products and directly engaging with the customers. 4.The right training and capacity building of potential entrepreneurs to unleash new opportunities. Despite a large population already familiar with the Internet and social networks, most micro-entrepreneurs in India are yet to turn digital. While the COVID19 pandemic has given a push toward digitization and many businesses now depend on digital marketing and online sales, the lack of awareness to undertake digital initiatives remains a challenge. Training for microentrepreneurs must include dispersing practical knowledge on leveraging digital technology to scale up the business and product design. There is an urgent need to develop holistic solutions that aggregate services, enable scale-ups, and bring standardization. Leveraging the large-scale skilling ecosystem is a critical step in this direction. An effective strategy for micro-enterprise development can be a potent solution to address youth unemployment and give rise to competitive entrepreneurs who can drive the economic aspirations of our nation.
Source: Economic Times
Making a grand opening in its northern base, Gartex Texprocess India New Delhi 2022 was inaugurated by eminent dignitaries including Upendra Prasad Singh, secretary - ministry of textiles, government of India and Sunil Sethi, chairman, Fashion Design Council of India. As a high-value business platform, the trade fair hosts 200 plus exhibitors with over 1,000 products and machinery from varied sectors. Opening doors to innovative product showcases and opportunity to engage with more than 200 companies from garment and textile machinery, fabrics, accessories, and allied industries, the seventh edition of Gartex Texprocess India is up and running at Pragati Maidan, New Delhi. Addressing the industry post-inauguration, Singh stated: “The Indian government is working towards upscaling size and scale of textile industry through policies such as the mega textile park which is aimed at solving the problem of fragmented value chain as well as size and scale. Sustainability and circularity in the textile ecosystem also need to be developed. We are also focusing on incentivising textile machine manufacturing to encourage foreign manufacturers to build textile machinery within India.” Also part of the inauguration panel, Hasmukh Patel, member of parliament & Textile Consultative Committee acknowledged Gartex Texprocess India as a crucial contributor to the growth vision of the Indian textile and garment industry: “The Indian textile and garment Industry aspires to augment its exports within the next ten years and a platform like Gartex Texprocess India will play the role of an enabler in this ambitious journey. I am optimistic this exhibition will continue to accentuate the best manufacturing techniques in the industry and empower our local manufacturers to meet international benchmarks of quality and quantity that are required for exports.” “I also laud the organisers for their tie up with FABEXA, the nodal arm of Maskati Cloth Mahajan which has allowed numerous fabric manufacturers from the Gujarat region to showcase their expertise in the collocated Fabrics & Trims Show,” Patel added. A legendary veteran of the Indian fashion industry – Sunil Sethi, chairman, FDCI, who was also part of the inauguration panel, stated: “The need of the hour is innovation. The collaboration between textile, garment and screen-printing verticals will make Gartex Texprocess India even more successful and help companies showcase their new developments and capabilities before customers.” Following a successful commencement of Gartex Texprocess India New Delhi 2022, the organisers – MEX Exhibitions Pvt Ltd and Messe Frankfurt India shared a joint statement: “Gartex Texprocess India has experienced 42 per cent growth in exhibitor participation in this edition. We would like to extend our utmost gratitude to the ministry of textiles for their strong support as well as our partners and supporting associations for their continued co-operation.” Co-located alongside Denim Show, Fabrics & Trims Show and Screen Print India, Gartex Texprocess India New Delhi 2022 displays over 1,000 products and manufacturing technologies in garment and textile, denim, fabrics and screen printing, including TS 1800 Digital Thread Dyeing System by Orange-O-Tec, which can dye thread in millions of colours on demand precisely on single and multiple spools due to its sustainable waterless technology; Bullmer Procut 1800 by Mehala is a highly-precise automatic cutter for large volume of apparel with operator-friendly handling and menu navigation, easy-to-programme, and a high cost-performance ratio benefits; SureColor SC-F530 Desktop Dye-Sublimation Textile Printer by Epson is ease of use, highlyproductive and efficient, ideal for small-volume clothing and custom merchandise. The other products include JETVARNISH 3DS with iFOIL S by Konica Minolta allows users to execute Hot Foil Stamping in house, at high speeds with virtually no set up, eliminates the need for ?lms and dies; and Copperhead Pro Mini by DCC is versatile, compact and all-electric automatic screen printing press which consumes less power and delivers extremely high production speeds without the usage of compressed air. Demonstrating India’s growing prowess in quality denim production, the Denim Show has featured top 25 denim mills bringing their latest denim products at the show, along with top denim manufacturers such as Jindal Worldwide Ltd, Arvind Ltd, Raymond UCO Denim Ltd, LNJ Denim, Siyaram Silk Mills Ltd, Kanchan Group and many others. In association with FABEXA, Fabrics & Trims Show has converged around 70 Gujaratbased fabric manufacturers under a special pavilion to demonstrate the region’s local expertise in fabric, cotton and natural based fabrics. The exhibition is also set to host over 200 fabrics sourcing representatives during the remaining show days. The organisers are also hosting an exclusive knowledge forum to impart in-depth insights on interesting industry topics, such as ‘impact of content creation’, ‘trends AW 2023’, ‘reducing audit fatigue through SLCP’, and ‘Fashion Forward – Challenges, strategies and opportunities.’ Supported by the ministry of textiles as well as chief industry associations and trade bodies like The Confederation of Indian Textile Industry (CITI), Denim Manufacturers Association (DMA), Maskati Cloth Mahajan, Retailers Association of India (RAI) and the Apparel Export Promotion Council (AEPC), Gartex Texprocess India New Delhi lends itself to be a highly productive and opportune platform to source the best manufacturing machineries and engage with top industry players throughout its two remaining days. The three-day exhibition was inaugurated by chief dignitaries from the ministry and trade bodies, including Upendra Prasad Singh, Hasmukh Patel, Sharad Jaipuria, president, Denim Manufacturers Association & CMD, Ginni International Ltd, Babulal Sonigra, ex-chairman, Fabexa Committee, Maskati Cloth Market Mahajan, Jang Gyoo Lim, director, Hysoung India Pvt Ltd (Creora), Sunil Sethi, Aamir Akhtar, group CEO, Jindwal Worldwide, Akhilesh Rathi, director, Bhaskar Denim, Himani Gulati, director, MEX Exhibitions, Gagandeep Singh, secretary general, Denim Manufacturers Association (DMA), Kantilal Sanghvi, vice president, Maskati Cloth Market Association, Nareshkumar Sharma, secretary, Maskati Cloth Market Association, Amish Rajendrabhai Shah, chairman, Fabexa, Abhinav Arya, director, Fabcare, Vimlesh Arora, director JN Arora & Co, Keshav, director, Baba Textile Machinery, Deepak Choudhary, director, Aura Technologies and Winston Pereira, general manager, Messe Frankfurt Trade.
Source: Fibre 2 Fashion
ww.citiindia.org 22 CITI-NEWS LETTER Says with demand and supply situation expected to show signs of green shoots during theyear-end festive season, we may see revival in the economies across the world from early next year. India's trade deficit was almost $26 billion in June, which has now risen to $31 billion. There are worries about the current account deficit. How long will it take for the deficit to come under control? Imports growth of over 57 per cent during June 2022 is of concern and has been mainly on account of petroleum products; Coal, coke and briquettes; gold; electronic goods; organic and inorganic chemicals and artificial resins, plastic materials, etc, which may be looked into. However, the rising imports of gold may lead to impressive gems and jewellery exports in the coming months. Crude prices have also added to the import bill of petroleum products, thereby to the import basket of the country. Trade deficit and current account deficit may not be of concern in the long run, for the trade deficit is expected to go down as many Indian companies have advanced their imports to overcome the supply-side disruptions and now managing large inventories, which will reduce their imports in future. The softening in metal prices and hopefully the crude prices shortly will also reduce the deficit. Moreover, with the rise in merchandise and especially services, exports will come handy. FIEO, with support of the government, is working on a strategy to further promote services trade, as Covid-19 pandemic has changed the pattern of international trade, moving further more towards services trade. When would the overall normalcy be restored? That is, the pre-pandemic conditions. Though it seems that the situation in the global economy, including India, may see an improvement from the third quarter of the FY23, much will depend on the quantum of correction in the global factors impacting the economies across the globe reeling under rising inflationary pressure due to high crude oil prices, disruption in global supply chain due to geopolitical situation arising out of Russia-Ukraine war, currency depreciation, and high food and commodity prices. Normalcy in the global economy and international trade, especially exports to the prepandemic levels, may be a little early to predict now, but with demand and supply situation expected to show signs of green shoots during the year-end festive season, we may see revival in the economies across the world from early next year. Which issues are troubling exporters the most? Global trade has started showing signs of contraction. It is facing a triple whammy: shift in consumption from goods to services; high inflation across economies, thus reducing the purchasing power and pushing interest rates; and high inventories. However, these are driven by the market forces with no role of government. The sharp depreciation of currencies against the dollar as compared to rupee, which showed only modest depreciation, is a cause of concern for the export sector. Then there is the northward movement in credit rates, which affects our competitiveness. The Production Linked Incentive (PLI) Scheme for the man-made fibre (MMF) and technical textiles is a game changer for the Indian textiles industry. The decision of the government under the leadership of Prime Minister and the continuous guidance and support of the Commerce & Industry and Textiles Minister and the Finance Minister, the scheme addresses the major concerns of the garment exporters by encouraging domestic manufacturing of man-made fabrics which was hitherto imported. This would add to domestic value addition with attendant benefits in employment. The scheme has helped in realigning our exports strategy, which so far has been dependent on cotton products to move to man-made and technical textiles. The scheme will attract investment both domestically as well as through the FDI route as many companies in North and Far East are keen to invest in the MMF and technical textiles sectors. The PLI investment in electronics, machinery, and automobile and auto components will help us to push exports in segments, which account for roughly 35 per cent of global imports. This will reduce our import bill significantly in the next four to five years. The focus on setting up the unit in Tier-III and IV cities as well as in rural areas will help in inclusive growth and provide jobs at the doorstep. Since the priority under the scheme is job creation, the investment sought under it and the capital employment ratio in the textiles industry will help us cross the direct employment target of 7.5 lakh. Further the PLI Scheme will make India Atma Nirbhar in man-made fabrics, thus paving the way to make it a global champion in man-made apparels and technical textiles as well. The PLI Scheme will further help us in building as we continue to move ahead. What do you expect from the government? The government has come up with a slew of measures to support the exports sector, including the recent announcement of reduction in central excise duty on petrol and diesel, reduction in import duty on the raw material of steel and plastic, and increase in export duty on iron-ore & steel intermediates. Besides, reduction in customs duty on raw cotton from 10 per cent to zero, extension of the interest equalisation scheme, extension of the FTP 2015-20 by another six months and extension of time for filing of MEIS/RoSCTL/ROSL scrips, has imparted competitiveness to manufacturing, exports, and push value-added exports from the country. However, there is need to further push value-added exports, increase subvention under Interest Equalisation Scheme, 25 per cent enhancement of limit under ECLGS, augment container manufacturing, develop an Indian shipping line of global repute, increase the validity of RoSCTL and RoDTEP scrips to 24 months and link transferability with realisation, extend RoDTEP to EOUs, SEZs and Advance Authorisation, expand usages of RoDTEP and RoSCTL scrips and more logistics support for the sector looking at the higher freight cost. Do you see any backlash against exports from India to the Western nations because of our neutral stance in the Ukraine war? No, we do not see any backlash against exports from India to the Western world including the US. The entire world understands and appreciates our position. We are striking a nice balance in our domestic and international requirements. In fact, our exports to the US, the UK, the EU and other NATO countries have seen constant growth during recent times, especially during the Russia-Ukraine war. Countries are looking at India as a major and reliable supplier of food and pharma products. Besides, it has also come as an opportunity for the overall exports sector, as India could further cement its position in the global value and supply chain.
Source: Bizz Buzz
China and ASEAN (Association of Southeast Asian Nations) have reiterated their commitment towards reaching a free trade agreement between the two parties. China’s state councillor and foreign minister Wang Yi said that both sides should collaborate to promote the Belt and Road initiative and that more countries should contribute to the building of the New International Land-Sea Trade Corridor and ensure the safe and efficient movement of industrial and supply chains. At a recent China-ASEAN foreign ministers' meeting, which was held at Phnom Penh, Cambodia, and co-chaired by Wang and Cambodian deputy Prime Minister and foreign minister Prak Sokhonn, the ministers voiced their support for the Regional Comprehensive Economic Partnership (RCEP) and its implementation. Wang also said that both sides should team up to advocate for high-quality RCEP implementation, extend cooperation regarding the digital and green economy, and speed up the follow-up negotiations on the China-ASEAN Free Trade Area.
Source: Fibre 2 Fashion
Factories in HCMC are trying various ways to prevent workers from quitting at a time when they do not have enough orders to provide jobs for all. Footwear maker Long Rich Vietnam Co. Ltd based in Thu Duc, with almost 5,000 workers, has just enough orders for workers to complete during regular working hours and so there is no scope for overtime work unlike previously, Nguyen Thi Thuy Van, chairwoman of its labor union, said. With orders expected to drop further, the company has made plans to retain all its workers. If there are not enough orders to keep them busy, they will be asked to do other jobs such as cleaning the machinery and making covers for the machines and gloves and aprons for themselves. During this period, they will still get a fixed salary and daily lunch. Even if there is not any work for them, the factory will still have workers check in every day to have lunch. The company will also organize sports and entertainment programs to keep them entertained. Van said: "Such activities are to create a reason for workers to come to the factory and keep employer and employees in touch. "Without that connection, workers will look for other jobs and when the business returns to normal, we will not have enough workers." Having workers stay at home and get 75 percent of their salary while waiting for new orders would be the last solution, she added. Textile and garment firms have seen orders drop since the second quarter and are having workers work in rotation. The industry's exports have been hit by major problems this year, severely impacting many companies, Tran Thi Tuyet Mai, deputy general secretary of the Vietnam Textile and Apparel Association, said. At the beginning of the year businesses received a lot of orders but suffered from labor shortages, but since the second quarter the impacts of the Russia-Ukraine war have led to rising fuel prices and people in many countries changing their consumption habits, causing a sharp decline in demand for fashion items, she said at a conference in HCMC last month. Many have had workers taking turns because there was not enough work for all of them at once, she said. Companies in other sectors too faced the same problem due to lack of orders. Do Trung Anh, HR director of a foreign electronics firm, said many companies hire temporary workers through labor firms. His company normally has a payroll of more than 1,000 workers but is now keeping only 700 on a permanent basis for important tasks and hires casual labor for less important ones, he said. "The company has to pay labor suppliers but in the long term these costs less since it will not have to pay bonuses or compensation when terminating contracts." Nguyen Xuan Son, country operations manager, staffing and outsourcing at ManpowerGroup Vietnam, which provides workforce solutions, said his firm has supplied more than 5,000 casual laborers to companies this year, mostly young people looking to gain experience. Nguyen Tam Thanh, regional human resources director - Cargill Thailand & Vietnam, one of the leading suppliers of animal nutrition products, solutions and services in Vietnam, said the casual labor ratio now is 15% on average, but would rise to 25% and 50% in future.
Source: Daily Times
Bangladesh, the second largest exporter of textile industry in the world, is facing a double whammy these days. On the one hand, Bangladesh is troubled by a region-wide energy crisis. At the same time, orders for export of textiles are also decreasing. Textile industrialists and businessmen believe that they are currently facing the biggest power cut in the last three years. Because Bangladesh stopped buying liquefied natural gas. He is now strategizing for long-term supply. Because the Russo-Ukraine war created a natural energy crisis. Bangladesh is the second largest textile exporter in the world after China. Which is now facing the brunt of slow global demand along with the energy crisis. PVH Corp, the parent company of fashion brand Tommy Hilfiger, and Plumie Fashion Ltd, a supplier of Inditex SA’s Zara, saw a 20 per cent drop in new orders for the month of July compared to last year. It is also affecting the official employees working in the textile industry of Bangladesh.
Shipment of finished goods being postponed in the markets Retailers in both the European and US markets are deferring shipments of finished products. At the same time, many businessmen are also delaying the order. Due to the increase in inflation in the export destinations, its serious effect is also visible.
Decreasing orders can be fatal for the economy The occurrence of orders can now prove fatal for the country’s economy. Because the apparel industry produces more than ten percent of the GDP. Due to which 4.4 million people get employment. That is why officials are resorting to power cuts to conserve fuel reserves and to deal with the prevailing energy crisis.
Have to stay on generator for three hours The energy crisis has now increased the cost of doing business significantly. The leading exporters of supplies are Standard Group Limited, Gap Inc. and H&M Haynes & Moritz AB operates its dyeing and washing units on the outskirts of Bangladesh. According to company officials, one has to depend on the generator for at least three hours a day.
Generator is three times more expensive than the electricity of the national grid Officials of the companies said that the cost of the generator is becoming three times more expensive. Due to the cost of diesel, the supply of generators is three times more expensive than electricity from the national grid. Due to lack of power, the dyeingwashing unit cannot be shut down. Due to its closure, the textile industry will reach the verge of ruin.
Cloth will also remain in cost reduction Charlie Robertson, global chief economist at Renaissance Capital, has said that textiles are a discretionary commodity. If energy bills are rising in Europe, then discretionary spending will have to be cut. Textiles will also be a product from these sectors, whose expenditure will be decided by the people.
Business closed at the lowest level in five years The talk of the decline of business in the garment industry of the South Asian nation has been denied in the beginning. Whereas experts say that in the last five financial years till June 2020, the business in garment exports fell to $ 27.95 billion. Apparel exports reached a record $42.6 billion by the end of June. Which is 82 percent of the total exports.
Source: Forbque
Current account & trade deficit and political instability, increase of US Dollar and energy prices has created devastating consequences on our industry, business and economic activities. This was discussed by the central executive committee meeting of All Pakistan Textile Processing Mills Association (APTPMA) during an emergent zoom meeting here the other day. The meeting was chaired by the Chairman APTPMA Engr. Hafiz Ihtasham Javed from APTPMA H O Secretariat Faisalabad, and Co-Chaired by M. Zubair Motiwala; Patron-in-Chief APTPMA from Karachi attended, among others, by the Office-Bearers &Executive Committee Members of APTPMA Faisalabad, Karachi and Lahore/Gujranwala Regions. Elaborating his grave concern on the current critical situation of textile processing industry and business, the Chairman APTPMA told the meeting that hike of dollar price has increased gas and electricity prices by 85% and 33% respectively which is pushing our industry to the verge of complete closures and collapse. He said that more than 70% textile processing industry has been closed in Faisalabad, Karachi, Lahore, Gujranwala and other cities of the country. The Patron-in-Chief APTPMA stressed that if we want to increase our textile exports like Bangladesh, regionally competitive energy prices must be ensured for our industry. There is urgent need to reduce our current account and trade deficit and our Govt should make a charter of economy and economic policies and reforms. He said that our Govt should sit down with all the stakeholders for concrete solutions of the current critical issues faced by our industry and business. He talked about importance of value addition and said that textile processing sector is a special sector and when we talk about value addition and earning more dollars/forex, and if we want to give identity to any item in textile is dest of pass through processing, because dyeing and printing of raw fabric in processing sector make it possible “Made in Pakistan” or Made in Japan. It was also furnished in the meeting that for the economic stability in Pakistan there is need of stable political Govt and to attain stable political setup in this situation, urgent Election is inevitable for stability of our economy and Pakistan. Concluding of the meeting, it was unanimously resolved by the meeting that to get rid of current uncertainty, business and economic crisis, powerful circles of Pakistan should play their positive role to make political and economic stability in our country forthwith. He said that the Charter of Economy is the most important need of the hour to get the country out of the economic crisis.
Source: Business Recorder
Clothing stores in the Kingdom are on edge, with tens of thousands of employees losing their jobs amid the rise of online shopping and the impact of other crises, according to sector representatives. Asad Qawasmi, the clothing, footwear and jewellery sector representative at the Jordan Chamber of Commerce (JCC), told The Jordan Times that the local apparel sector is in “urgent need” of effective solutions to revive the sector and support business owners. President of the Textile, Readymade Clothes and Footwear Syndicate Sultan Allan told The Jordan Times on Sunday that the sector currently employs 69,000 workers. “Slow business resulted in 82,000 employees losing their jobs,” Allan added. Almost every employee is the primary provider for their household, said Qawasmi. The JCC representative said the rise online shopping is taking a heavy toll on traditional shop owners, adding that the ongoing shop closures and the growing unemployment is a result of unregulated online trading, said Qawasmi. He said that packages ordered online are exempt from the standards and regulations of traditional shopping. “Online traders get the merchandise through customs as personaluse items,” Qawasmi added. However, Qawasmi stated that online traders stockpile this merchandise and sell them for affordable prices, “which results in unfair competition between the traditional and the online clothing traders”. “Taxes and fees must be unified between e-commerce and traditional shopping,” said Allan. However, some online business owners disagree with Allan’s assertion. “We pay shipping fees, transport fees, customs as well as marketing fees,” said Shatha Mustafa, an online business owner. Mustafa claimed that there are often hidden fees for e-commerce businesses. “We pay for online advertisements, we pay for intermediaries in other countries, we now pay annual fees to the Ministry of Trade, and we also have to report our sales to the Department of Taxes,” said Mustafa. She added that for any business to thrive, it must present a solution to a problem. “Traffic, rising temperatures, false advertising, as well as COVID-19 each contributed to slowing down of the traditional clothing sector’s business,” said Mustafa. However, Mustafa believes that traditional shop owners have not improved their business models. “Shop owners are using the same business models that have existed in the market for decades,” said Mustafa. “Our competitive edge is that we understand consumer’s demands,” Mustafa said. “People feel safe shopping online. They know that they will get the service they want, as well as the customer service they hope for,” Dima Qudah, an online clothing business owner, told The Jordan Times. Qudah stated that online businesses’ competitive edge is customer service, rather than affordable prices. Qudah added that people tend to shop online because they will get the service that they paid for. “One bad review is enough to destroy an online business. The service a customer gets is what matters most to them at the end of the day,” remarked Qudah. “Traditional stores need to keep up with global trends,” Qudah concluded.
Source: Jordan Times
