The state government has completed setting up 554 clusters across the state to ensure smooth lending in the MSME sector by the banks. About 292 of these clusters are in MSME while 262 are in handloom and khadi front. "Bank loans in MSME clusters have been encouraging. So since we assumed office for the first time in 2011, we have laid special focus on the development of clusters. Presently we have completed 554 clusters in the state which have risen from 49 in 2011," a senior official of the state MSME department said. As many as 83 clusters have come up in Nadia district followed by East Burdwan with 75. Brass and bell metal, plastic, jewellery, nalen gur and muslin handloom exists in Nadia cluster while rice mill, zari zardosi, dokra, muslin, rakhi, kantha stitch handloom have been set up in East Burdwan. Murshidabad with 38, Howrah with 37 and East Midnapore with 35 are also among the front runners when it comes to the development of clusters. While Howrah is one of the few districts that have a shuttle cock cluster, East Midnapore specialises in cashew nuts, bus body and madur handloom. Paschim Burdwan has seven clusters of refractory bricks — the only of its kind in the state. Interestingly, Kalimpong a new district that was formed in February 2017 after splitting from the Darjeeling district has developed a dozen clusters comprising cardamom, turmeric, ginger, mulberry silk, art and craft.Some of the well-known clusters in the state include the fan cluster at Bansdroni under the area of Kolkata Municipal Corporation, the zari cluster in Howrah, textile cluster in Metiaburz, belle metal cluster in Bankura and Murshidabad, handloom cluster in Nadia and East Burdwan, LED light in Hooghly, baluchari in Bankura, sital pati and mekhla cluster in Cooch Behar, wooden furniture in Alipurduar, Chaau mask in Purulia etc. "We provide support to the clusters by arranging training for skill enhancement, supply of machines and other infrastructure through setting up of common facility centres (CFCs) and also create the infrastructure of marketing products manufactured by them" the official added. As many as 186 CFCs have already been completed, while work for 14 are in progress. An initiative has been taken for developing another 115 CFCs.
Source: Millennium Post
• For this round of negotiations, technical experts from both sides came together for detailed draft treaty text discussions in 85 separate sessions covering 15 policy areas India and the UK concluded the fifth round of talks for a free trade agreement on 29 July, and aim to conclude the deal by the end of October this year, the commerce and industry ministry said in a release on Thursday. The talks were held in a hybrid manner with some of the teams meeting in New Delhi and the majority of officials joining virtually. “For this round of negotiations, technical experts from both sides came together for detailed draft treaty text discussions in 85 separate sessions covering 15 policy areas," said the release. “India and the UK officials will continue to work intensively throughout the summer towards our target to conclude the majority of talks on a comprehensive and balanced Free Trade Agreement by the end of October 2022," it added. India and the UK have covered significant ground in the past rounds, with the UK agreeing to eliminate duty on Indian rice and textile goods, while India is likely to allow duty-free entry of British apples, UK-manufactured medical devices, and machinery. Initially proposed to be an early harvest agreement or interim FTA covering 65% of goods and up to 40% services, commerce and industry minister Piyush Goyal had expressed optimism that the full pact would be ready by Diwali without the need for an interim early harvest agreement. The agreement is estimated to double India-UK bilateral trade to about $100 billion by 2030. An agreement is also expected on mutual recognition of higher education qualifications, a person aware of the development said. India will likely get more skilled visas, with the UK currently facing a shortage of experts in the IT and programming sectors. The India-UK FTA deal is also expected to give a boost to the domestic textile sectors. Exporters told Mint that the UK is among the most important markets for them among all other markets where India has got duty-free access such as UAE, and Australia.
Source: Live Mint
Stakeholder involvement will doubtless facilitate such deals That India Inc is ready to embrace new-age free trade agreements (FTAs), which entail regulatory policy reform, intellectual property rights protection, labour rights, etc, will doubtless be received with considerable scepticism. Although welcome, it is also a fact that along with farmers, industry has so far remained lukewarm about FTAs. Its main worry is the lack of a level playing field amidst concerns that trading partners like China, for instance, can inundate the domestic market with cheaper steel, chemicals and electrical goods, thanks to surplus capacities and non-transparent subsidies. Opposition from the automobile and electronics industry effectively prevented an early harvest trade agreement with Thailand 18 years ago from graduating into a full-fledged FTA. For such reasons, India has, till recently, been ambivalent about such agreements and even exited from the Regional Comprehensive Economic Partnership at the eleventh hour. But all that is history. With the compulsion to push exports as a growth engine at a time headwinds are buffeting global trade, India has been inking fresh deals, and many more are in the pipeline like the ones with the UK, the EU, Canada and Israel. India is confident of having a deal with the UK despite political uncertainties in that country, with a new prime minister in office by early September. The big question naturally is what has led to the change of heart of India Inc? For starters, this welcoming of new-age FTAs has largely come from apex business chambers like CII and FICCI. The former has said that it is keen to see the early conclusion of FTAs with the UK and EU, and is working with the government to ensure that while negotiating issues like sustainability and IPRs, “the genuine interests of Indian industry are preserved”. These interests of course include the need for FTAs to be fair and balanced, and safeguards in place, wherever required, to have a level playing field. According to a report in this paper, New Delhi thus may have to negotiate with the UK and EU for an exemption from the carbon border adjustment mechanism, which typically aims to tax imported goods, including steel and cement, from countries with less strict climate policies. In a similar vein, the chambers applaud Union budgets as historic even if they have been done in by their provisions and lobby to have these amended. The late economist IG Patel presciently wrote about this tendency of many in private business “who think even now that rather than incur the displeasure and unpleasantness of opposing government policies and all that, it is much simpler, much cheaper, much more comfortable to be on its right side.” With India Inc on board, the government obviously will be in a position to fast-track broader, more ambitious FTAs over the near-term. Not so long ago, it was mulling a proposal to set up an interministerial panel to ensure better coordination as differences on crucial and sensitive issues within ministries that oversee different sectors tended to delay FTA negotiations. The commerce ministry is also restructuring the organisation, separating the trade policy division into trade negotiation wing – bilateral and trade negotiation wing – multilateral, headed by additional secretaries to anchor policies at one location, and is inducting domain experts into the department. All of this should facilitate the recently revamped FTA strategy to boost India’s export drive.
Source: Financial Express
According to a UP government spokesperson, incubators in fintech, education, health, agriculture, textile, and IT/IT-enabled services have been set up The Uttar Pradesh (UP) government has created an angel fund of Rs 1,000 crore to facilitate setting up 10,000 start-ups across sectors. So far, 6,800 start-up ventures come up with Noida, Ghaziabad, and Lucknow leading the pack. According to a UP government spokesperson, incubators in fintech, education, health, agriculture, textile, and IT/IT-enabled services have been set up. The incubators aim to boost UP’s entrepreneurial talent and provide young entrepreneurs an inclusive start-up ecosystem. They will not only promote start-ups, but also give a push to mass employment opportunities and attract private investment. Till now, 15 incubators have come up in state universities, engineering colleges and private institutions. In fact, India’s largest start-up incubator is in the works in Lucknow. “An innovation hub has also been made operational, which supports more than 200 start-ups even as eight other ventures are being handled by the multi-specialty Sanjay Gandhi Post Graduate Institute of Medical Sciences, Lucknow,” he added. At least one incubator will be set up in each of the 75 districts of UP. Earlier, the government had plans to set up a Fintech City over 100 acres in the Noida-Greater Noida corridor. Currently, about 240 fintech start-ups are operational in the region dedicated to digital lending, payments, blockchain and digital wealth management. Some of these firms include Pine Labs, Spice Money, Paytm Payments Bank, Advisorymandi, DiGiSPICE, OneCode, Wishfin, GramCover, FanTiger, Marquee Equity, Easypolicy, Buddy4Study, Oye Loans, PayMe India, PortDesk, Nivesh.com.
Source: Business Standard
French sports goods retailer Decathlon S.A. has decided to source 85% of its products sold across 103 stores in India from domestic suppliers by 2026, up from 60%, Deepak D’Souza, production director, Decathlon Sports India, sai French sports goods retailer Decathlon S.A. has decided to source 85% of its products sold across 103 stores in India from domestic suppliers by 2026, up from 60%, Deepak D’Souza, production director, Decathlon Sports India, said. During the covid crisis we realized it’s much more advantageous to have local procurement within the country," said D’Souza, as the covid-led lockdowns disrupted global supply chains, affecting manufacturing, distribution and transportation of goods. With mobility restrictions impacting supplies of products and raw material, retailers and manufacturers of goods had started strengthening local supply chains and production. Decathlon has, however, been sourcing products from Indian suppliers even for exports since the late 1990s. It used to initially source textiles and horse-riding equipment, but gradually diversified into other categories. It had also set up its own stores to tap into growing demand for sports goods in India. Around 70% of the textiles, 80% socks, and 95% bikes sold at its stores are manufactured locally. It also sells made-in-India hockey sticks, sleeping bags, and cricket bats and 70% cricket apparel, besides metal and plastic scooters for kids, outdoor equipment, bottles, fitness bands, balls, nutrition products and fixtures. The company plans to manufacture more than 80% of the components used to assemble a Decathlon bicycle in India by 2025, apart from tents sold at its stores. D’Souza said over the years India has developed the ability to manufacture more technical sporting goods, and quality of materials has also improved. Earlier, it was restricted to textiles and basic sporting goods, he said. “Now, it brings a huge opportunity to diversify our product range by reducing the lead time by making in India. We see many firms investing. Product ranges are also diversifying beyond cotton. We see a lot of technical wear and synthetic shoes being produced in India," he added. “For a lot other products, such as plastic, metals, rubber, electronics, food nutrition as well, there’s a lot of backward supply chain that is already available. This gives us huge opportunity to diversify our product range," D’Souza said. Decathlon got a licence to operate single-brand retail stores in India in 2013. Earlier, it operated wholesale and business-to-business stores in the cash-and-carry format. Today, the company operates large-format stores selling gym equipment and camping products, besides sportswear and shows, and has four warehouse and 95 manufacturing partners.
Source: Live Mint
PSG College of Arts & Science is a mammoth of an institution that has grown with independent India since 1947. The Institution is celebrating its 75th year Platinum Jubilee with an array of festivities. As a part of the celebration, a Corporate ‘My Stamp’ is released on 11.08.2022 The welcome address was delivered by Dr.D.Brindha, Principal, PSG College of Arts & Science, followed by the presidential address by Shri L Gopalakrishnan, Managing Trustee of PSG Institutions. The Stamp was released by the Chief Guest, Shri Ravi Sam, Director of Adwaith Textiles. It was accepted by the Managing Trustee & Senior Superintendent of Post office. Shri Ravi Sam, Director of Adwaith Textiles delivered the special address, followed by the felicitation address by Shri K Gopalan, Senior Superintendent of Post office, Coimbatore division. The vote of thanks was proposed by Dr.T.Kannaian, Secretary of PSG College of Arts & Science. e-Post signed by all the students of PSG College of Arts & Science wishing the honorable President Shrimathi Draupadi Murmu for having assumed the office of the President, was also handed over to Shri K Gopalan, Senior Superintendent of Post offices. PSG College of Arts & Science filled with pride, celebrates 75 glorious years through memorable events.
Source: Covai Post
The Union Ministry of Textiles has taken steps to hold exhibitions in London and Madrid in which 75 weaves will be displayed, UP Singh, Secretary (Textiles), said recently. At the National Handloom Day programme organised recently by the Ministry of Textiles, he said 75 handloom gifts were distributed among Indian diaspora and those who had “genuine interest in handlooms.” Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal, said the census data of handlooms of over 35 lakh handloom workers should be placed in the public domain so that the benefits of the handloom schemes reached the beneficiaries. Handloom weavers and handicraft artisans should be on board on GeM portal in large numbers and all government departments should purchase handloom products for all their textile needs, he said. Design Resource Centres were inaugurated at Indore, Kolkata, Nagpur, Meerut, and Panipat and 82 Sant Kabir and National Handloom Awards were given away as part of the programme, according to a release. Speaking virtually at a conference here on “Sustainable Clothing and Textile Recycling Conference” on Wednesday, the Minister said the global textile recycling market was six million to eight million tonnes and 12 % to 14 % of total global waste was recycled by the textile sector. But, just 1 % to 2 % of clothing materials were recycled into garments. Sharing, reusing, repairing, refurbishing, and recycling were the need of the hour. The textile recycling industry was mainly in the US, EU, and China. India had opportunities to become a source for sustainable apparels. The manufacturers should go in for sustainability certifications, he said.
Source: The Hindu
KARACHI: The All Pakistan Textile Mills Association (Aptma) believes export proceeds of the textile sector will go down by up to $3 billion in the current fiscal year because of the government’s policies that have “strangulated” the largest dollar-earning sector of the economy. “I can’t see (us) getting out of this perfect storm… It’d be a miracle if we’re able to retain our exports at the current level,” said Aptma Secretary General Shahid Sattar while speaking at a seminar organised by the Pakistan Institute of Development Economics on Thursday. Textile exports increased almost 26 per cent to $19.3bn in 2021-22, according to the Pakistan Bureau of Statistics. Mr Sattar said the textile sector performed “pretty well” in the last two years as its foreign earnings increased by roughly $7bn. However, he said he’s become a “big sceptic” with regard to the immediate future of the textile sector given the severity of its working capital crisis. The national currency has lost more than two-thirds of its value of late, which means the pre-existing limits on textile mills’ working capital have become redundant. “Exporters are facing huge issues in financing the export cycle, which lasts four to six months. You need double the amount of currency now to finance that cycle,” he said while criticising the sales tax that’s meant for domestic sales but results in mopping up liquidity from the export-oriented segment of the textile sector. “You collect Rs300-350bn a year and retain up to Rs60bn (and refund the rest). This has soaked up liquidity… the Export Finance Scheme just doesn’t cover the lack of working capital. How can our exports grow if we don’t have working capital?” he said. He criticised the government for failing to supply gas and electricity to the textile units that have recently been either upgraded or built anew using the subsidised loans under the Temporary Economic Refinance Facility (TERF). “We invested heavily through TERF in new plants and machinery and upgradation… But they’ve not been given the energy that they need to operate on. All these people who expanded their operations are now in fact cursing me, saying the expansion isn’t being utilised. Who will service these debts?”
Source: Dawn
A SENATE bill is proposing to develop the handloom weaving industry and make its products more globally competitive. Senate Bill 241 or the proposed Philippine Handloom Weaving Industry Development Act of 2022 hopes revive the trade and help weavers tap a broader global market. Senate President Pro-Tempore Lorna Regina B. Legarda filed the bill to support the artisans “who continuously safeguard our country’s rich heritage.” We must give our weaving industry a fighting chance,” she added. “Our handwoven fabrics deserve recognition.” The National Handloom Weaving Department Council will be tasked with generating a roadmap for the industry, an intellectual property framework for textiles, and promoting textile-related Technical Skills and Vocational Education and Training. It will be composed of representatives from the National Commission on Indigenous People, Technical Education and Skills Development Authority, National Commission for Culture and the Arts, and the Garments and Textile Industry Development Office of the Department of Trade and Industry. “Handloom weaving is one of the most time-honored cottage industries in the Philippines and a resource for rural employment and income,” Ms. Legarda said. “The industry has a considerable role in rural development as well as a great source of cultural pride and national identity.” If passed into law, P10 million will be appropriated from the national treasury for initial implementation.
Source: Business World Online
Deal with Turkey can worsen balance of payments through rising imports. Businessmen say that Pakistani authorities are finalising the Preferential Trade Agreement (PTA) with Turkey without consulting the private sector that can be detrimental for the local market. The government of Pakistan is expected to sign a PTA with Turkey on August 12, 2022. Employers’ Federation of Pakistan (EFP) President Ismail Suttar revealed that as part of the agreement, Pakistan has agreed to give duty exemptions to Turkey on almost 220 products whereas Turkey has given exemption on around 120 products. However, the Ministry of Commerce has failed to reach out to the private sector for consultation on the PTA. “They destroyed the local industry with a similar disadvantageous agreement with China,” he said. UNISAME Chairman Zulfikar Thaver said that PTAs are always welcome but benefits must be equal to both countries. In the case of Turkey, there is a need to examine the import-export items of both the countries. Turkish industries are more advanced than those in Pakistan and Turkey would only be interested in textiles, rice and a few other commodities, he said. “Turkey will be interested in exporting many finished goods and this can be a setback to our manufacturing units,” he explained. Suttar said that without consultation with the private sector, the PTA with Turkey could prove to be counterproductive for Pakistan’s economy. This was seen before as well when the Pakistan-China Free Trade Agreement was signed and Pakistan was never able to realise the true potential of the agreement. In contrast, China was able to export a considerably higher volume of products to Pakistan, thereby worsening the country’s balance of payments (BOP) position. The Ministry of Commerce has not reached out to the private sector, nor the apex trade bodies (EFP and FPCCI). The country is going through an economic crisis because of which a PTA without consultation with the private sector could end up making the economy worse off as a result of rising imports, he added. Arif Habib Limited (AHL) Head of Research Tahir Abbas said the government should take all relevant stakeholders on board before finalising a PTA with Turkey. Taking the private sector on board will help the government in maximising exports with targeted products and markets while also preventing dumping of goods from foreign countries into Pakistan, he said. Suttar emphasised that it is imperative for Pakistan to remain internationally competitive in sectors that the country has a competitive advantage in. If the agreement does not include the right products, then it can prove harmful to Pakistan’s trade balance and economy. He said that the PTA will adversely impact several Pakistan-based companies as their products may become uncompetitive as compared to Turkish products that will enjoy duty exemptions. Currently, Pakistan is in need of favourable trade agreements to boost the balance of payments position. Taurus Securities Head of Research Mustafa Mustansir said PTAs have their benefits and drawbacks. In essence, PTAs relax all trade barriers between countries, especially tariffs and duties. Successful PTAs occur between countries which enjoy comparative advantage in goods and services, which they can mutually exchange for collective benefit. Therefore, some consultation should have taken place with the private sector to determine whether Pakistani exports have a commercially feasible market in Turkey or not. Arif Habib Commodities CEO Ahsan Mehanti said PTAs penetrate local markets against business interests of producers in their home country. Ideally, the private sector needs to be consulted and products that are in shortage should be part of agreement, he said. Suttar said that the country can no longer afford to have trade agreements that would be unfavourable for industries and result in a sharp rise in the country’s import bill.
Source: Tribune
This was a 57.06% year-on-year (YoY) growth from the same period of 2021 Bangladesh’s dominance continued throughout the first half (January-June, or H1) of this year as the market leader in denim apparel to the United States, shipping goods worth $445.5 million. This was a 57.06% year-on-year (YoY) growth from the same period of 2021, according to recent data from the Commerce Department’s Office of Textiles and Apparel (Otexa). In the same period last year, Bangladesh exported denim apparels worth $283.64 million in the North American country, Otexa data stated. The US imported denim apparels worth $2.05 billion during the first half of 2022 from global suppliers, noting a significant increase of 42.62% on a YoY basis, from $1.43 billion in the same period last year, data also revealed. In 2021, Bangladesh had become the top denim exporter to the US for the second consecutive year. Currently, Bangladesh holds 22.36% market share of the US denim market as the market leader. According to RMG insiders, Bangladesh is still on the right track to remain a market leader for denim apparel, amid the global crises induced by war and inflation in the West and disruptions in the supply chain. They also said that Bangladeshi denim is the biggest brand in the US market as US buyers consider it an elite product of high quality, hoping Bangladesh will remain the top denim exporter to that market for a third consecutive year by the end of 2022. Along with Bangladesh, all major denim apparel shippers witnessed an increase in their respective shipments to the US market, namely Mexico, Pakistan, Vietnam, China, and Egypt. Securing second position, Mexico experienced significant progress and shipped $362.02 million worth of denim garments to the US, registering a growth of 26.46% YoY from $286.26 million in H1 '2021 with a market share of 17.02%. With an 11.21% market share, Pakistan exported denim apparel worth $242.76 million registering a 60.8% yearly growth in the US market during the first six months of 2022, from $150.97 million of the same period last year. Vietnam was fourth, exporting $217.98 million worth of denim with a 44.57% growth from $150.77 million of the same period last year, and a market share of 10.94%. China shipped $188.45 million worth of denim garments – up by 26.42% - from last year’s $148.9 million, with a market share of 9.95%, Otexa data said. Regarding the dominance in the US market, Mohiuddin Rubel, deputy managing director of Denim Expert Limited and also a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Dhaka Tribune that denim was one of the most prominent sectors within Bangladesh's RMG industry. “In the past decade, the denim industry in Bangladesh has developed significantly through quality products, competitive price, resilience, and environment-friendly manufacturing process which made us the top denim import source for the USA,” he added. Bangladesh has made huge investments in the denim industry particularly, in the local denim sector, which is more than $1.39 billion and a strong backward linkage industry that covers almost 50-60% of denim productions through local fabrics, design studios and 40 world-class denim manufacturer mills. “Bangladesh is now able to deliver denim orders very fast, which is also a positive sign for buyers,” he said, adding that apart from basic five-pocket denim, Bangladesh was manufacturing high-end fashionable denim products with value additions. Moreover, since 2014, Bangladesh Denim Expo plays a crucial role in the growth of the Bangladesh denim Industry by promoting sustainability, transparency, innovation, circularity, and responsible manufacturing process, he added. “Bangladesh has made huge investments in both backward and forward linkage industries for Denim. We believe that we will continue to be the top denim source for the USA if we can maintain the competitiveness of our industry,” he added. Regarding the current issues, he said that the global economy and trade show a depressing outlook ahead which is a concern for the apparel industry. “According to the World Bank, the global economic growth will come down to 4% in 2022 from 10.3% in 2021,” he added saying that the annual inflation rate in USA rose to 8.5% in July and in the Eurozone, it hit a record 8.9%,” Rubel further said. The risk of an economic recession is also increasing in those countries, he feared. “Our government is doing its best to protect our economy. The positive side is that exports kept positive momentum and remittance growth recorded, and through all the measures imports will also be under control,” he added.
Source: Dhaka Tribune
The lack of credit is one of the biggest challenges companies face as banks have nearly exhausted their credit quotas while funding is needed to boost post-pandemic recovery, business leaders said. Although textile and garment exports in the first seven months rose 16 percent year-onyear to $26.5 billion, many companies are struggling to secure enough funds to operate, said Deputy Chairman of the Vietnam Textile and Apparel Association at a meeting between business leaders and Prime Minister Pham Minh Chinh on Thursday. The seafood industry is facing a similar challenge as animal feed prices have risen by over 20 percent and transportation costs have surged, said Nguyen Hoai Nam, deputy secretary of the Vietnam Association of Seafood Exporters and Producers. Many banks, however, are not giving out new loans as their credit quotas have nearly been reached, he added. Companies in the construction and property sectors also struggle to acquire loans as banks limit credit via high interest rates, said Nguyen Quoc Hiep, chairman of the Vietnam Association of Construction Contractors. Although construction sites have to take care of employees as much as factories do, they are not getting priorities in funding as much as manufacturing firms, he added. He proposed the State Bank of Vietnam be flexible in providing loans to ensure economic growth. Vietnam targets to keep credit growth at under 14% this year and will allow banks with high ratings more quotas for the rest of the year. PM Chinh said companies need to sympathize with banks and the latter need to lower interest rates to fund important projects, including social housing.
Source: VN Express
