Tamil Nadu, a leading textile state, is now having a thrust on the home textile sector too. Addressing a regional MSME meet in Tirupur, MK Stalin, Chief Minister of the state, announced that the production of home textiles would be included in the ‘thrust sector ’ to provide a special capital subsidy. The move to include home textiles in the thrust sector was made after considering the demand placed by the MSMEs. In Tamil Nadu, Coimbatore, Erode and Salem are the leading hubs of various home textile products. The home textile in the state yields an annual revenue of Rs. 8,000 crore besides generating Rs. 4,000 crore through exports. Inclusion of home textiles under the thrust sector will benefit many companies as well as the workers. The CM also announced that an export facilitation centre would be established in all districts under the respective district industries centre (DIC). “The industrial growth should be focused not just on Chennai or any other specific city.All districts must witness consistent and equitable growth and that is why investor’s conclaves were organised in southern and western districts,” he said.
Source: Apparel Resources
The revenue of the polyester yarn industry grew 60 percent last fiscal due to massive price hikes on healthy demand. Polyester yarn is used mostly in athletic and leisure wear, home textiles, and garments. Robust demand from end-users and increased blending with cotton yarn due to decadal high prices of cotton will boost the revenue of polyester yarn makers by 18 -20 per cent this fiscal, a report said on Thursday. This will have the industry's growth spree continuing this fiscal as well leading to operating margins expansion, and the resultant stronger balance sheets and better credit outlook, rating agency said in a report on Thursday. The revenue of the polyester yarn industry grew 60 per cent last fiscal due to massive price hikes on healthy demand. Polyester yarn is used mostly in athletic and leisure wear, home textiles and garments. Operating profitability (difference between prices of polyester yarn and its raw materials) of the industry is also expected to increase by 100 basis points to 11 per cent this fiscal, driven by continued higher capacity utilisation (over 90 per cent) due to demand growth and healthy polyester yarn spread, said the report. The average spreads rose to a five-year high of Rs 29 per kilogram last fiscal from Rs 22 a kilogram in the previous fiscal and should sustain at Rs 28-29 per kilogram this fiscal, it added. Better profitability and expected modest capital spending will im prove credit profiles of yarn makers, shows an analysis of 24 players that account for about 40 per cent of the sectoral revenue, the report said. Recovery in demand from these end-user segments and multiple price hikes had led to a revenue growth of 60 per cent last fiscal, though on a low base, with sales volume picking up 15 per cent. Demand is seen to remain healthy this fiscal too, with garments and home textiles segments expected to grow at 16-18 per cent and 12-13 per cent this fiscal respectively, driven by recovery in domestic demand and moderate growth in exports, according to the agency. Polyester yarn is cost-effective to blend with cotton yarn, and since cotton yarn prices have risen by 25 per cent over the past year, higher blending has increased the demand for polyester yarn. With the increased differential between cotton and polyester yarn prices to sustain, the report expects 4-5 per cent of cotton yarn demand to shift to polyester yarn. Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG), both crude derivatives, account for 80 per cent of raw material cost for polyester yarn manufacturers and the prices of these two raw materials prices have increased sharply due to supply chain issues arising from the Russian invasion of Ukraine in February. The industry will also benefit from favourable demand-supply dynamics as no large capacity addition is expected over the next two fiscals, while demand is expected to grow at 7-8 per cent, the report said.
Source: Economic Times
The Indian Government is looking at value-added exports like fabrics, made ups and home textiles as exports of raw materials may not rise further due to increasing local demand. The focus on key growth areas like ‘sustainable textiles’, ‘technical textiles’ and ‘natural fibres’ and high-end technology is the success mantra for the future growth of textile industry. Sharing this, Upendra Prasad Singh, Textile Secretary, stated that the Government has commissioned schemes like PLI, MITRA Parks, GATI Shakti with a view to attract investments in the sector, reform infrastructure and address logistic bottlenecks. He was addressing the industry after felicitating the winners of TEXPROCIL EXPORT AWARDS 2020-2021. The textile and apparel exports achieved the highest ever level in the year 2021-2022 with an export turnover of US $ 44.4 billion, growing by 40 per cent over the previous year. During the same period, export of cotton textiles (including raw cotton) grew by 54 per cent, reaching a level of US $ 16.42 billion. Industry strongly believes that in the next 5 to 7 years, Indian textile industry could expand in size to US $ 250 billion and achieve exports of US $ 100 billion. Manoj Kumar Patodia, Chairman, TEXPROCIL, says that the import duty on cotton and the prices of Indian cotton needed to be regulated as they were higher than international prices. There is need to increase the RoDTEP rates in knitted fabrics and items under HS 9404 which were by definition home textiles, but were given lower rates than home textile items.
Source: Apparel Resources
Discussions in the meeting are expected to focus on the new Foreign Trade Policy (FTP 2022-27), ways to take forward domestic manufacturing and exports Commerce and Industry Minister Piyush Goyal is likely to chair a meeting of the Board of Trade next month to discuss ways to boost the country's exports, an official said. The Board is an advisory body on the foreign trade policy. It is headed by the minister and includes participants from states, Union Territories, and senior officials from public and private sectors, and provides a platform to discuss ways on boosting manufacturing and exports. The board may meet sometime in mid-September, the official said. Last month, the government nominated 29 non-official members from different sectors, including large and small enterprises, to the Board. The new members include Laghu Udyog Bharati executive member Om Prakash Mittal, India Cellular and Electronics Association chairman Pankaj Mahindroo and Amul MD RS Sodhi. Discussions in the meeting are expected to focus on the new Foreign Trade Policy (FTP 2022-27), ways to take forward domestic manufacturing and exports. The platform provides an opportunity to have regular discussion and consultation with trade and industry and advise the government on policy measures related to FTP in order to achieve the objective of boosting India's trade. It also provides a platform to state governments and UTs to articulate their perspective on trade policy, and also to Government of India for apprising them about international developments affecting India's trade potential and opportunities and to prepare them to deal with the evolving situation. Federation of Indian Export Organisations vice-president Khalid Khan said the Board should discuss a circular of the RBI issued last month on measures for international trade settlement in rupees. In that, the Reserve Bank asked banks to put in place additional arrangements for export and import transactions in the Indian rupee in view of the increasing interest of the global trading community in the domestic currency. Some kind of standard operating procedure should be released for banks on this, Khan said. India's exports rose 2.14 per cent to USD 36.27 billion in July while the trade deficit almost tripled to USD 30 billion during the month due to over 70 per cent rise in crude oil imports. However, exports during April-July 2022-23 rose by 20.13 per cent to USD 157.44 billion. Imports during the four months increased by 48.12 per cent to USD 256.43 billion. The trade deficit stood at USD 98.99 billion as against USD 42 billion during April-July 2021-22.
Source: Business Standard
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal, reviewed the progress of Government e Marketplace (GeM). Among many other things, various functionalities of GeM, as well as timeliness in procurement and delivery were reviewed in detail. It was noted that more than 95% of all the physical order deliveries since Apr’22 happened on time, in cases where online fulfillment and payment was done via GeM. While consistent improvement was observed in the on-time delivery across all transaction types (Direct Purchase, L1, Bids / Reverse auctions) via GeM, the Minister shared specific suggestions to revise thresholds and add features to further accelerate delivery timelines as well as provide more flexibility to government buyers to choose products as per their delivery needs. Shri Goyal suggested bringing in end to end online fulfillment and payment for all transactions by buyers on GeM and to improve monitoring of delivery against timelines. The Minister also emphasized on the need to bring all public procurement on the completely online and transparent portal viz GeM for achieving economies of scale and bringing about Social Inclusiveness by promoting Micro and Small Enterprises. GeM’s initiatives for tight monitoring and anomaly detection in procurement, including use of AI-ML to detect and report potential collusion and fraud were reviewed. Shri Goyal suggested strong legal and punitive actions against buyers and suppliers against such activities. In addition to detecting anomalies, GeM also plans to use AI-ML to make proactive feature simplifications and product suggestions to buyers to ensure informed decision making and savings in public spendings. Significant technical upgrades have been planned by GeM to enable cutting edge use cases and improve user experience on the platform. Several other initiatives by GeM, including MSME inclusion and Har Ghar Tiranga campaign were appreciated by the Minister.
Source: PIB
Modi said that India missed taking advantage of the first three industrial revolutions because it couldn't keep pace with the changing nature of work As India Inc debates the utility of remote work in a post-pandemic world, Prime Minister Narendra Modi on Thursday strongly backed the work-from-home ecosystem and flexible work hours, calling them the future. “The need of the hour is flexible workplaces, the work-from-home ecosystem, and flexible work hours. We can utilise systems like a flexible workplace as an opportunity to increase women’s labour force participation. By making the right use of women power, India can achieve its goals faster,” Modi said in his inaugural address at the 44th national conference of labour ministers and secretaries of all states and union territories. The two-day event is being organised in Tirupati, Andhra Pradesh. Harsh Goenka, chairman of the RPG group, had triggered a debate earlier this month when he warned information technology (IT) sector workers of a mediocre career trajectory if they dug in their heels and worked from home. “Employees now need to come back to the office, at least on some days of the week. We need to foster the spirit and mission of the organisation, the culture, the creativity, the camaraderie, the water cooler talk. Working from home is no longer a long-term viable option,” Goenka wrote in a LinkedIn post. Most of the top conglomerates are asking their senior executives to report to work, although a few start-ups like Swiggy have allowed work from anywhere. Modi’s remarks on increasing female participation in the workforce assumes significance as India has one of the lowest female labour force participation rates (LFPR) in the world. According to the latest Periodic Labour Force Survey report for 2020-21, the estimated LFPR for females stood at 25.1 per cent, in comparison to 57.5 per cent for males. The female LFPR has hovered at around 20 per cent for several decades. Recalling his address to the nation on the 15th of August from the ramparts of the Red Fort, the Prime Minister said he had called for the full participation of the nation’s women power (nari shakti). Cautioning against the dangers of lagging behind in the fourth industrial revolution, Modi said India missed taking advantage of the first three industrial revolutions because it couldn’t keep pace with the changing nature of work. “Today the world is entering the digital era. The entire global environment is changing rapidly. Today we are all witnessing a new dimension of employment in the form of gig and platform economy. Be it online shopping, online health services, online taxi and food delivery, it has become a part of urban life today. Millions of young people are driving these services, this new market. Our right policies and right efforts for these new possibilities will help make India a global leader in this sector,” Modi said. Modi said his government had removed a number of obsolete laws in the past eight years to keep pace with the transformations happening in the workforce and the market. “The country is now changing, reforming, and simplifying such labour laws. With this in mind, 29 labour laws have been converted into four simple labour codes. This will ensure the empowerment of workers via minimum wages, job security, social security, and health security,” he added.
Source: Business Standard
The Bluesign Technologies AG, Switzerland and AIC-NIFTTEA Incubation Centre for Textiles and Apparels supported by Atal Innovation Mission, NITI Aayog, have entered into an agreement to formalise the cooperation on promoting sustainable textiles. Bluesign has been offering a best-in-class suite of services under system partnership for over 20 years. AIC-NIFTTEA supports the start-ups and MSMEs in textiles and apparel Industry that focus on sustainable production through the development and promotion of low pollution, and resource efficient products/processes and ensuring sustainable consumption and production patterns in the textile industry. The activity includes survey, awareness, research, training and outreach, Bluesign said in a press release. AIC-NIFTTEA supports a range of partners including technical and technological service providers, producers’ organisations and trade associations to facilitate technological solutions and create positive impact on energy and water conservation, environment, and social thereby improving economic growth and employment opportunities. Bluesign Technologies AG is an organisation with a team of experts in chemical management, process know-how, worker health and safety, sustainability, and environmental sciences. Bluesign recognises that taking environmental responsibility to a higher level requires tools and validation methods to reduce impact on people and the planet. The bluesign System is the solution for responsible and sustainable textile production. It eliminates harmful substances right from the start of the manufacturing process, and it sets and controls standards for environmentally friendly and safe production. This not only ensures that the final textile product meets very stringent consumer safety requirements worldwide but also gives consumers confidence in purchasing responsibly produced products. Bluesign Technologies AG was founded in 2000. Since then, the bluesign System has been adopted by worldwide leading textile and accessory manufacturers. Various significant key players in the chemical and machine industry rely on the bluesign System, and well-known brands in the outdoor, sportswear and fashion industry trust the extensive knowledge and services of Bluesign. Bluesign Technologies AG and AIC-NIFTTEA together plan to collaborate on promoting, training, building capacity and innovating technology on eco-initiatives for sustainable textiles.
Source: Fibre 2 Fashion
The Road, Transport, and Highways Minister said the public-private partnership model should be encouraged for the development of air cargo infrastructure in the country. The government is working on bringing a single logistics law for all modes of freight transportation to eradicate duplication of processes and simplify procedural requirements, Union minister Nitin Gadkari said on Friday. The Road, Transport and Highways Minister said the public-private partnership model should be encouraged for the development of air cargo infrastructure in the country. "The government is bringing a single logistic law for all modes of freight transportation to eradicate duplication of processes and simplify procedural requirements. "This system will facilitate multi-modal transportation in the true sense," Gadkari said while addressing the 12th DACAAI AGM. The minister pointed out that the government's aim is to reduce the logistics cost to 8%, which was currently around 14%. He pointed out that in the domestic aviation market, air cargo share is very low and the challenges are many. "Aviation infrastructure should be developed using the latest technology...if we can make aviation infrastructure efficient and accessible then it will create a huge difference," Gadkari emphasised. While noting that economic viability is very important, Gadkari said that domestic air cargo is more suitable for the NSE 1.20 % fuels, vegetables, flowers and seafood. He suggested that old defence aircraft can be used for the transportation of fish and fruits to reduce transit time for such products. "If we could transport more volume by air then the logistic cost would reduce," the minister said.
Source: Economic Times
It submits proposal to BEE to recognise them as Designated Consumers under PAT scheme The Andhra Pradesh State Energy Conservation Mission (AP-SECM) has identified 85 new industrial units, apart from 143 that have already been shortlisted, as having potential to become Designated Consumers (DCs) under the Perform, Achieve & Trade (PAT) scheme, and is in the process of submitting these units are from the chlor -alkali, commercial buildings, aluminium, cement, steel, spinning and textiles, petrochemical, automobile, ceramic, food processing and fisheries sectors. The PAT scheme is a programme launched by the BEE to reduce energy consumption and promote enhanced energy efficiency among specific energy- intensive industries in the country. According to a press release issued by the CEO of SECM A. Chandra Sekhar Reddy, Chief Secretary Sameer Sharma has acknowledged PAT as an excellent programme in the area of energy efficiency, while pointing out that 36 large industrial units in the State have achieved a saving of 0.818 Million Tons of Oil Equivalent (MTOE) of energy worth ₹5,709 crore in the last few years by implementing energy efficiency measures under the PAT scheme. Energy savings at the national level stood at 24.5 MTOE, which helped in reducing energy intensity, production costs and increasing productivity in the industries. Conservation cells The Chief Secretary directed all the District Collectors and Heads of Departments to immediately constitute energy conservation cells in coordination with the SECM, and thanked Secretary for Ministry of Power Alok Kumar and BEE Director General Abhay Bakre for their support in the implementation of the PAT scheme. He advised all the departments to conduct quarterly reviews on energy efficiency and prepare action plans for their effective implementation under the guidance of Special Chief Secretary (Energy) K. Vijayanand.
Source: TBS News
Ahead of the Make-In Odisha conclave from November 30 to December 4, Chief Minister Naveen Patnaik is scheduled to meet ambassadors and high commissioners of 16 different countries at the national capital on August 31, official sources said. Patnaik, who will leave on a six-day visit to Delhi, will interact with ambassadors and high commissioners of countries like Japan, South Korea, Australia, United Arab Emirates, Saudi Arabia, Bahrain, Oman, Qatar, Singapore, United Kingdom, Germany, France, Italy, Luxembourg, Belgium, USA and some other counties and woo them to invest in Odisha. Patnaik’s meeting assumes significance as the MIO conclave is being held in the city after a delay of two years due to the COVID pandemic. The focus of the MIO, 2022 this time would be on metals and metal downstream, chemicals and petrochemicals, textiles and apparel including technical textiles, food processing including seafood processing, Electronics System Design and Manufacturing (ESDM), logistics and clean energy. Officials informed that potential investors would be apprised on the state’s potential in all these sectors. Patnaik is likely to speak on the state's business ecosystem and the ease of doing business reforms implemented by the state government, which has the advantage being the most stable government in the country. Odisha’s MSME Minister PK Deb, Chief Secretary SC Mohapatra, Industries secretary Hemant Sharma and other senior officials will hold one-on-one meetings with investors from the region, the sources said. Apart from meeting the ambassadors, Patnaik during the visit will also follow up on important pending work with the Centre on other days and is scheduled to receive a Lifetime Achievement Award from Capital Foundation on September 4. He is scheduled to return Odisha on September 6, sources in the CMO said. Earlier in June on the way back to the state from Italy, Patnaik had attended his first overseas investors’ meet in Dubai. He had invited investors from Middle East and North Africa (MENA) region to invest in Odisha. Officials said that investment intents worth more than Rs 21,000 crore were received during the event. However, the opposition BJP and Congress criticized the state government for incurring huge expenditure in the name of investors meet. “Odisha has spent around Rs 95 crore in 2016 and 2018 MIO conclaves and other events. However, the state has not achieved the desired goal,” said state BJP president Samir Mohanty. Odisha Congress president Sarat Patnaik said the government is claiming that it generated jobs for the youths, let them give details how many people are engaged in industries.
Source: The Week
The Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA), which were both enacted in 2022, have played a major role in boosting Cambodia’s economy, according to Cambodia’s Ministry of Commerce (MoC). Cambodia's total export to RCEP members was worth $3.28 billion during January-June 2022 — a 10 per cent increase compared to the same period the previous year. “The two free trade agreements have given larger market access to Cambodia's products,” said Bun Chanthy, undersecretary of state at Cambodia’s MoC. In the first half of 2022, Cambodia’s top three export destinations were Vietnam, China, and Japan, said Cambodian media reports quoting an MoC news release. The Southeast Asian country exported goods valued at $542 million to Japan, $612 million to China, and $1.17 billion to Vietnam.
Source: Fibre 2 Fashion
The European textile & fashion in Europe, represented by EURATEX, calls for a single European strategy to tackle this energy crisis. To safeguard the future of the industry, a revision of the electricity price mechanism is necessary and an EU wide cap on gas prices at 80€/MWh. Special company support needs to be granted to avoid bankruptcy and relocation of textile production outside Europe. Gas and electricity prices have reached unprecedented levels in Europe. Due to severe global competition in the market that characterizes the European textile & clothing industry, these cost increases are impossible to pass on to customers. This has already led to capacity reductions and production stops. Closures and the shift of production outside Europe are being forecasted should the current situation persist, leading to further de-industrialization of our continent and increased dependency on external suppliers. Specific segments of the textile industry are particularly vulnerable. The man-made fibres (MMF), synthetic and cellulose-based fibres, industry for instance is an energy intensive sector and a major consumer of natural gas in the manufacturing of its fibres. The disappearance of European fibre products would have immediate consequences for the textile industry and for society at large. The activities of textile dyeing and finishing are also relatively intensive in energy. These activities are essential in the textile value chain in order to give the textile products and garments added value through colour and special functionalities (e.g. for medical applications). The European textile industry calls for an EU-wide cap on gas prices at €80/Mwh, and a revision of the price mechanism for the electricity market, to reduce the huge price gaps with our foreign competitors. Governments should ensure that critical industries, such textiles and all its segments, are able to ensure gas and electricity contracts towards the end of the year at an affordable price. Stable and predictable energy supply is of the utmost importance. Gas restrictions and rationing must only be used as a last resort. No mandatory consumption cuts should be foreseen. In addition to these measures under discussion, we currently observe a proliferation of contradictory, uncoordinated national initiatives to tackle the energy crisis. This has led to a de facto fragmentation of the Single Market, resulting in a chaotic policy and regulatory environment that adds a further strain on our supply chain, which is fully integrated at European level. Measures that guarantee a level playing field in the EU are utmost important - the future of the European textile & clothing industry is at stake! EURATEX President Alberto Paccanelli explained: “Given the current situation, a scenario where entire segments of the textiles industry will disappear can no longer be excluded. This would lead to the loss of thousands of companies and tens of thousands of European jobs and would further aggravate the dependency of Europe to foreign sources of essential goods. This applies specifically to SMEs who need temporary support measures (e.g. state aids, tax relieves, energy price cap) to survive the current crisis and to prepare for the green transition in the longer run.”
Source: Fashion United
As Bangladesh has made improvements in workplace safety, one of the preconditions of the US government, Dhaka will reiterate the issue of restoration of the US generalised system of preferences (GSP) at the Trade and Investment Cooperation Forum Agreement (TICFA) meeting in Washington in November, according to senior secretary in the commerce ministry Tapan Kanti Ghosh. The United States does not offer GSP to any country now. The tenure of the last GSP programme ended in 2020 and the US Congress has not revived it. The US trade representative (USTR) suspended the GSP benefit for Bangladesh on June 27, 2013, citing poor labour rights and poor workplace safety following two industrial disasters. Once the US Congress adopts a new GSP programme for different countries in the near future, Bangladesh will again urge USTR to revive the GSP for itself, said Ghosh. The Obama administration then also released 16 preconditions necessitating improvements from the government and the private sector for GSP reinstatement. Bangladesh has amended the labour law and made improvements in workplace safety following guidelines of two international platforms, Accord and Alliance, and submitted the progress reports to the USTR twice for revival of the GSP. However, the benefit was not revived, citing the need for further improvements in labour and intellectual property rights. The fifth US-Bangladesh TICFA Council was held in Dhaka on March 5, 2020. TICFA was signed in 2013.
Source: Fibre 2 Fashion
Sustainability and circularity are an inevitable path that Vietnamese textiles have to follow, according to Trương Văn Cẩm, general secretary of the Việt Nam Textile and Apparel Association (VITAS). Cẩm was speaking at the seminar "Promoting circularity in Vietnamese textiles" on Friday. He said a booming textile industry has become a thing of the past. The industry has shifted its focus from fast growth to sustainable growth. It is expected to grow by around 6 per cent from 2022 to 2030 and achieve circularity between 2030 to 2045. He also underscored VITAS's PPP (Profit-People-Planet) as a well-suited model for textile firms to go green. Under the model, firms are required to operate profitably and, at the same time, improve workers' living conditions and embrace green production. The general secretary urged textile firms to keep themselves well-informed about circularity to not lag behind on the global green path. He also called on firms to weigh the costs and benefits of green transition to develop the best strategies for themselves, avoiding green-at-all-cost narratives. Saskia Anders, director of the GIZ Fabric Asia Programme, revealed that the European Commission passed its strategy for sustainable and circular textiles this year. Up to 16 regulations and other policy measures are being planned to make textile products that enter the European market more long-lasting, repairable, reusable and recyclable until 2030. "There is a large interdependence between the first stages of product development and its end-of-life. Hence, the effort needs to be collaborative and the responsibility needs to be shared," she said. Nguyễn Thế Chinh, former head of the Institute of Strategy and Policy on Natural Resources and Environment, defined circular economy as an economic model that allows efficient use of materials, longer product life spans, lower production wastes and less environmental impacts. He said the Government always puts circularity high on its agenda and aims to encourage the reuse and recycling of production waste. He also said Vietnamese firms could learn from German firms in this regard to operate more circularly. "In Germany, many firms reclaim CO2 from their factory emissions to sell it as input to other firms," he said. Cao Minh Ngọc, director of the RTS Việt Nam Technology Solutions and Resources, underscored four factors that are posing a serious threat to water security in Việt Nam, which are climate change, rising sea levels, drought and flooding. An average of 30,000 cubic metres of used water go through a treatment plant and get released into the environment daily in industrial parks. However, he said the practice of pumping treated water into the environment is a waste of resources. "The treated water could be pumped into other factories for reuse as long as the water meets the 01/2018/BYT standard issued by the Ministry of Health," he said. He also asserted that firms engaging in treated water reuse would be granted Green Certificates, which help them penetrate international markets more easily. Trần Hoàng Phú Xuân, director of the fashion firm Faslink, asserted that two million cups of coffee are consumed every day and the decomposition of the untreated coffee grounds releases a huge volume of methane, a greenhouse gas. Her firm has embraced circularity by recycling coffee grounds into coffee-derived yarns, which are later used to make T-shirts. The yarns provide five times more UV protection and three times more odour control than cotton.
Source: EIN News
China stepped up its economic stimulus with a further 1 trillion yuan of measures to bolster growth and curb the fallout of repeated Covid lockdowns and the crisis in the property market stepped up its economic stimulus with a further 1 trillion yuan ($146 billion) of measures to bolster growth and curb the fallout of repeated Covid lockdowns and the crisis in the property market. The State Council, China’s Cabinet, outlined a 19-point policy package on Wednesday, including another 300 billion yuan that state policy banks can invest in infrastructure projects, on top of 300 billion yuan already announced at the end of June. Local governments will be allocated 500 billion yuan of special bonds from previously unused quota. At the same time, the State Council said the economy won’t be flooded with excessive stimulus and China won’t overdraw on its future policy room, reiterating officials’ relatively cautious stance on stimulus this year. China’s stop-start reopening from Covid lockdowns as well as a yearlong property slump has weakened growth, putting the government’s official goal of “around 5.5%” well At a meeting chaired by Premier Li Keqiang, the State Council vowed to make use of “tools available in the toolbox” to maintain a reasonable policy scale in a timely and decisive manner, according to a readout from state broadcaster CCTV. At the same time, the State Council said the economy won’t be flooded with excessive stimulus and China won’t overdraw on its future policy room, reiterating officials’ relatively cautious stance on stimulus this year. China’s stop-start reopening from Covid lockdowns as well as a yearlong property slump has weakened growth, putting the government’s official goal of “around 5.5%” well out of reach. Officials have downplayed the target in recent months as they stick to the Covid Zero policy of eliminating infections, with economists polled by Bloomberg projecting growth of less than 4% this year. The latest steps “could help offset the sharp contraction in government revenue and support infrastructure investment growth to some degree,” the economists including Maggie Wei said in a note. But overall growth “will remain sluggish” barring major policy easing measures, due to the very weak property sector and disruptions from Covid controls, they said. The 19 measures come on top of several recent stimulus steps: policy banks have been allocated a total of 1.1 trillion yuan of financing for infrastructure projects since June; the central bank delivered a surprise 10 basis-point interest rate cut last week; and in May, Beijing announced about 1.9 trillion yuan of support measures in a 33-point policy package, including targeting small businesses. The State Council on Wednesday also pledged to approve a batch of infrastructure projects. Local authorities are encouraged to use city-specific credit policies to support reasonable housing demand, it said. Amid an energy crunch triggered by drought, support was also directed toward stateowned power generation companies, which will be allowed to sell 200 billion yuan of bonds. Another 10 billion yuan of subsidies will be offered to the agricultural sector. The State Council also pledged to continue lowering financing costs and introduce measures to support the development of private businesses and platform companies.
Source: Business Standard
UK clothing and textile manufacturers are calling for support from the government to fix the skills shortage problem ahead of the upcoming recession, before the industry “starts to fail”. Kerry Senior, director of the UK’s main leather industry trade association Leather UK, has warned that a recession, coupled with skilled staff shortages caused by Brexit and worsened by the pandemic, is set create “the perfect storm” for the sector. “Something needs to be done before [the UK manufacturing industry] starts to fail – which is not what we want to hear as we stand on the edge of the recession,” he said. “If we’re not careful, there’ll be no coming back from it.” He said the sector has been hard hit by skills shortages, and a recession will push the industry over the edge: “We’re still seeing a shortage of availability of workers across the whole spectrum: from [factory] shopfloor all the way through to management staff. Some of our tanneries [registered with Leather UK] are working at 80%-90% staff capacity, which obviously is making things very difficult.” He blamed the skills shortage on the post-Brexit points-based immigration system introduced from 1 January 2021, which requires anyone (except Irish citizens) applying for a UK work visa to meet a specific set of requirements for which they will score points, such as a general salary threshold of £25,600, English language skills, or a job in a shortage occupation - a sector which needs more employees. However, unlike lab technicians and healthcare workers, clothing and textile manufacturers are not among the shortage occupation list and are not considered “skilled” professions. He said non-UK workers travelling back to their home countries amid the pandemic, and not returning, has made the situation worse. Meanwhile, Deloitte partner and chief UK economist Ian Stewart said manufacturers are also “facing a combination of very high inflation, which means their own costs are rising very sharply, but it’s also made worse by the fact that the pound has been weakening, which raises import prices”. He predicts that the recession will cause "contraction" in a sector that has already been depleted by Brexit and the pandemic. Consumer price inflation jumped to 10.1% in July, prompting a warning from the Bank of England earlier this month that the UK is headed for recession. Jenny Holloway, founder and CEO of not-for-profit London-based manufacturer Fashion Enter, said she is worried that a lack of take-up from younger generations could also cause contraction in the sector: "Younger people aren't [interested in going into manufacturing]. “It is the older people that are more long-term unemployed [who are applying to our manufacturing skills academy, which opened in 2015. Perhaps the children have flown the nest and they've now got time on their hands for retraining." Alexander Wills, COO of textile manufacturer Fashion Formula, also emphasised the challenges of recruiting younger workers: "There is a definite shortage of skilled labour, especially in the more industrial side of textile printing and manufacturing; and more pressingly, a lack of serious career interest in it from those who come through. “I have seen first-hand over the past 18 years working in the industry, the loss of highly skilled workers involved in the 'dirtier' parts of textiles and even across more typical areas such as sewing - losing younger people who can earn more money serving tables, in a cleaner, quieter and generally less-challenging environment.” Nosakhare Osadolor, founder of Hackney-based bespoke leather goods manufacturer Nosakhari, told Drapers that the skilled staff shortage has prompted the business to explore moving some parts of production to Poland, where there are more skilled workers and production costs are lower. "People don't want to do typical manufacturing, especially in the UK,” he said. He has decided to take matters into his own hands. In late 2020, Osadolor developed DIY leather products that can be crafted at home without the need for specialist tools or equipment, such as leather glasses pouches, pencil cases, and keyrings. Two years later, the Nosakhari-branded products are stocked in 14 retailers across the UK, as well as California, France and Switzerland. "We are firm believers that through putting in the time and energy we will ignite more interest in leather craftsmanship on both a local and global level," said Osadolor. Drapers has contacted the government for comment.
Source: Drapers Online
The House of Representatives Committee on Commerce has described the process of concessioning the Calabar Free Trade Zone (CFTZ) as a positive approach to unleash the full potential of the zone and significantly boost the nation’s economy. The Chairman of the Committee, Richard Gbande, during an inspection of the zone in Calabar, said it would stimulate industrialisation and economic growth. The lawmaker, representing Katsina-Ala/Ukum Federal Constituency of Benue State, explained that the public must understand the reason the Federal Government adopted the free trade zone scheme. According to him, it was basically aimed at encouraging industrialisation and promoting economic growth. Head, Corporate Communications, Nigeria Export Processing Zones Authority (NEPZA), Martins Odeh, in a statement, quoted Gbande as saying that the scheme required a long period of sustained funding to yield any significant benefit to the country. Gbande explained that the zone would be brought to the required optimal level of competitiveness when handed over to private investors. Managing Director of NEPZA, Prof. Adesoji Adesugba, expressed delight in President Muhammadu Buhari’s commitment and support in revamping the scheme to meet international standards. The NEPZA boss restated Federal Government’s commitment to ensure a stable electricity supply to the Calabar and Kano free trade zones, adding that the recent blackout in the Calabar zone had been addressed. Adesugba said the government’s approval of funds for the development of infrastructure at the two public zones and two other new ones, was an indicator of the president’s commitment to repositioning the scheme. According to him, the Authority has continued the execution of the power and other projects in Kano, Calabar, the Textile and Garment Park as well as the Medical Special Economic Zone in Lagos. “Already, works are ongoing in these areas as infrastructure development remains the bait that can attract investors to the zones,” Adesugba said.
Source: Guardian
BGMEA Vice President Shahidullah Azim has said the RMG industry of Bangladesh envisions pursuing growth in a sustainable manner that takes care of people and the planet. "The RMG industry of Bangladesh has many good stories in the area of sustainability which make us one of the front-runners in the marathon. Bangladesh boasts of having the highest number of green factories in the world, with 168 LEED Green factories certified by the US Green Building Council (USGBC), 50 of which are rated Platinum, with 550 more factories in the pipeline. Moreover, 40 out of the top 100 industrial projects in the world are established in Bangladesh," he said. He made the remarks while speaking at a seminar titled "Manufacturing in Efficient & Sustainable Way" organised by Apna Organics Pvt Ltd in hotel Radisson Blu in Dhaka on Saturday (27 August), reads a press release. Mohammad Hatem, executive president of BKMEA, Kazi Iftekhar Hossain, president of Bangladesh Garment Buying House Association (BGBA), Prasad Pant, South-Asia director of ZDHC, Engr Md Shafiqur Rahman, president of the Institution of Textile Engineers and Technologists, (ITET) and Abrar H Sayem, president, Bangladesh Apparel Youth Leaders Association (BAYLA) also attended the seminar. In his speech Shahidullah Azim said, at present sustainability has become a core area of concern in the global business landscape and a major demographic of the global consumer is concerned about sustainable consumption and production, especially the environmental footprint of the product they buy. BGMEA has proactively taken the issue of sustainability at the core of its strategic vision, he added. BGMEA, among many other steps, has signed the UN Fashion Industry Charter for Climate Action, an initiative of UNFCCC, to commit to the goal of reducing 30% of GHG emissions by 2030, the release adds. BGMEA, in partnership with the Global Fashion Agenda, has initiated the Circular Fashion Partnership, which is a cross-sectional partnership to achieve a long-term, scalable transition to circular fashion, which will help close the material loop.
Source: TBS News
