To streamline inter-ministerial coordination of service-related issues in logistics, an institutional mechanism, such as the Network Planning Group under PM GatiShakti, is also under consideration, the ministry added. "Such endeavours are expected to give a significant boost to India's logistics efficiency," it said. The commerce and industry ministry on Wednesday said it is developing a dashboard to help the industry flag issues or give suggestions to the government on matters related to logistics services. The dashboard is expected to be launched for all authorised industry associations soon, it said. To streamline inter-ministerial coordination of service-related issues in logistics, an institutional mechanism, such as the Network Planning Group under PM GatiShakti, is also under consideration, the ministry added. "Such endeavours are expected to give a significant boost to India's logistics efficiency," it said. It also said that the creation of a user-interactive dashboard will allow authorised user associations to log in and lodge issues or suggestions for the government to track and resolve them in a transparent manner. It will not only allow the division to address issues related to a single ministry/ department but also multiple ministries/departments. A user demonstration of the system was organised recently. In that, the prototype of the system and its benefits were discussed. "The initiative is expected to help in the identification of procedural issues that lead to lower efficiency in logistics and higher logistics costs," the ministry said. The user interaction dashboard is part of several initiatives being developed by the logistics division of the ministry to address the technology, services, and human resource-related aspects of logistics efficiency in the country.
Source: KNN India
S&P Global's Manufacturing Purchasing Managers' Index dips slightly to 56.2 in August from 56.4 in July India’s manufacturing activity remained robust in August, with production and new orders strongest since last November. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) dipped to 56.2 in August from a reading of 56.4 in July. A reading above 50 indicates expansion and a print below that denotes contraction. India’s manufacturing activity continued to expand for the 14th straight month. Demand boosted new orders in August to push output growth to a nine-month high. Production volumes were also supported by a pick-up in exports and upbeat projections for the year-ahead outlook, said the monthly report. Manufacturers attributed the fastest increase in production in nine months to higher sales, efforts to enhance capacities, product diversification and fewer Covid-19 restrictions. “This robust performance was complemented by a fourth successive monthly slowdown in the rate of input cost inflation, which slipped to the lowest in a year amid softer pressures from commodity prices," said Pollyanna De Lima, The findings also revealed recent inflation concerns somewhat faded, as business sentiment strengthened further from June's 27-month low. Predictions of stronger sales, new enquiries and marketing efforts all boosted business confidence in August. Lower commodity prices, especially aluminum and steel, helped in moderating inflation. The rate of input cost inflation softened to the weakest in a year, but the passing of higher freight, labour and material prices to clients kept the pace of increase in output prices little-changed from July. “Firms welcomed the weaker increase in input costs with an upward revision to output forecasts amid renewed hopes that contained price pressures will help boost demand. Inflation concerns, which had dampened sentiment around mid-year, appear to have completely dissipated in August as seen by a jump in business confidence to a six-year high,” said De Lima. International markets gave a fillip to total sales, as seen by a marked and quicker increase in new export orders halfway through the second fiscal quarter, the report said. Strong sales growth and a rise in production requirements supported a further increase in input buying at manufacturers, said the monthly report. Despite easing from July, the pace of expansion remained sharp, it said. On the supply side, the findings showed a further shortening of delivery times and a slower upturn in prices charged by vendors. Delivery times shortened to the greatest extent in close to five years.
Source: Business Standard
Exporters of apparel have urged the government to address issues related to ensuring raw material security and announcement of Production Linked Incentive (PLI) - 2. During the 43rd Annual General Meeting (AGM) of Apparel Export Promotion Council (AEPC) exporters raised the RoSCTL issue and requested government to announce a new ATUF Scheme, said a press release. Addressing the AGM, Naren Goenka, Chairman AEPC said, “We ended the year 2021-22 with more than USD 400 billion of goods exports for the first time ever, apparel exports also did well by registering USD16.2 billion worth of exports, despite challenges.” “In the first quarter this FY April- June 2022-23, apparel exports registered USD 4492.0 million of exports compared to April- June 2021-22, which was USD 3407.0 million, registering a growth of 31.8 per cent,” he added. Further he appreciated government efforts to increase export competitiveness, the string of FTAs and policies like PLI Scheme, PM MITRA, etc. Goenka said these schemes can propel Indian manufacturers to become global champions as they will get the level-playing field for Indian apparels as against competing countries. Commenting on the FTAs signed with Mauritius, the UAE and Australia, the Chairman said, “These FTAs will surely neutralize the advantage which our competitors use to enjoy in some of the important markets because of GSP and other NTBs.” Requesting the government to address the stress points for trade, he highlighted, “Most important being the raw material security, owing to the spiraling prices of raw cotton and cotton yarn.” He emphasised on another pressing issue related to RoSCTL. “We have been requesting the government to delete the condition in the notification issued by DoR for holding the transferee liable for the non- realization / excess availed by the exporter, which will also curtail its misuse,” Chairman informed. Additionally, AEPC has requested the government to announce the new Technology Upgradation Fund Scheme (TUFS) scheme as the ATUF scheme had expired on 31st March 2022.
Source: KNN India
The trade deficit in the fiscal year 2021–22 touched $191 billion, expanding by over $86 billion in a year. How are these numbers behaving in the current fiscal year? The fiscal year 2021–22 ended with a somewhat mixed picture on the trade front. There was plenty to cheer about merchandise exports, which reached the record level of $422 billion, the first time it had crossed the $400 billion mark. But, merchandise imports, too, experienced a record surge, scaling $612 billion. The trade deficit touched $191 billion, expanding by over $86 billion in a year. How are these numbers behaving in the current fiscal year? Data for the first four months of 2022–23 allow us to make initial assessments about India’s merchandise trade patterns. At first sight, the numbers for April to July 2022 do not look promising as exports have expanded by 20%, but imports have grown by over 48%. Consequently, the trade deficit has already reached nearly $100 billion, increasing by over 135% compared to the previous fiscal. Though exports have clearly underperformed in overall terms, technology-intensive electronic products and labour-intensive readymade garments have registered substantial export growth, giving rise to some optimism. However, gems and jewellery and pharmaceuticals, the two other product groups that have provided thrust to India’s exports in recent decades, have lost their growth momentum. The imports present the familiar picture of an import-dependent economy on a path toward recovery. Imports of crude oil, petroleum products and coal have expanded, and their import values are also increasing due to the firming of international prices because of political uncertainties. The past few weeks have seen a moderation of global energy prices owing to the weaknesses in major economies, principally the United States. This trend should help restrict the surge in import bills. But more alarming for the Indian economy is the increase in imports of electronics products and machinery, both electrical and non-electrical, since it is India’s northern neighbour that is the overwhelmingly large supplier in both these product groups. The sharp increase in textile yarn and raw cotton imports is equally concerning, as this could have serious implications for domestic producers. In recent months, the Government of India has taken two sets of decisions that have resulted in significant changes regarding the export destinations and sources of imports. First, the government reversed its 2019 decision to disengage from the global integration processes and initiated negotiations to forge Comprehensive Economic Partnership Agreement (CEPAs) with eight partners. While the CEPA with the United Arab Emirates (UAE) is being implemented and an early harvest agreement with Australia is waiting to be executed, agreements with several others, including with the European Union (EU) and the United Kingdom (UK), are being negotiated. Data on the destinations of exports are available for the first quarter (April–June), and these provide some clues as to what these actual and potential agreements could offer by way of incremental market access. This is an important issue as India’s major failing in the existing agreements with ASEAN, Korea, and Japan has been its inability to utilise the market access opportunities offered by the partner countries. The first quarter numbers show that India’s exports to the UAE have expanded by over 26% compared to the corresponding period in 2021–22. This is a positive development given that exports to the erstwhile top export destination had consistently declined during the previous decade. Although the increase in exports during April–June 2022–23 is not broad-based, with petroleum products accounting for most of the incremental gains, higher vehicles and electronic goods exports provide encouraging signs. Imports from the UAE have expanded by nearly 58%, 87% of which is due to the increase in the oil import bill. While this is not surprising given the increased demand for energy resources in India, the government will do well to closely monitor imports from this CEPA partner to ensure that third parties are not able to take advantage of the preferential access being extended to the UAE. Exports to the EU and the UK, the two potential CEPA partners, have been expanded during this fiscal, with the latter witnessing a 46% increase. However, the challenge for India would be to maintain its current level of market access in the face of severe headwinds these countries face. The most remarkable development during the first quarter is India’s substantially increased dependence on Russia. Compared to the previous year, imports from Russia have increased by nearly 370%, making it India’s sixth largest import source compared to 19th in April–June 2021–22. More importantly, Russia is now India’s third largest source of crude oil, with a 13% share, just behind Saudi Arabia, which has a 17% share. Russia is also the largest source of fertilisers, with a 19% share. These trends in merchandise trade have sent out one clear message: more than ever before, India’s trade engagements are dependent on strategic choices that the government makes during these challenging times.
Source: New Indian Express
India’s Logistics Division, Department for Promotion of Industry and Internal Trade (DPIIT) has created a user-interactive dashboard, which will now allow authorised user associations to log in and lodge issues or suggestions for the government to track and resolve in a transparent manner. The dashboard is being seen as a novel digital initiative for the industry that will not only allow the division to address issues related to a single ministry/department but also multiple ministries/departments. Thanks to the new initiative, industry associations and trade bodies will no longer have to burden themselves with paper correspondences to highlight issues and suggestions related to logistics services to the government, according to a press release by India’s ministry of commerce and industry. A user demonstration of the system was organised recently that witnessed the participation of all major industry associations associated with logistics services in India. In the demonstration, the prototype of the system and its benefits were discussed. This was followed by a detailed demonstration on the dashboard which would bring the industry and agencies closer with continuous two-way communication easing responsive governance. The initiative is expected to help in the identification of procedural issues that lead to lower efficiency in logistics and higher logistics costs. Echoing the views of the government, the senior office bearers of all industry associations present for the demonstration welcomed the initiative as a much-needed tool that would significantly reduce the communication gap between trade and the agencies. The user interaction dashboard is part of several initiatives being developed by the Logistics Division, DPIIT to address the technology, services, and human resources related aspects of logistics efficiency in the country, added the release. The dashboard is expected to be launched for all authorised associations in the sector soon. Senior officials from the Logistics Division have also indicated that to streamline the inter-ministerial coordination of service-related issues in logistics, an institutional mechanism such as the Network Planning Group (NPG) under PM GatiShakti is also under consideration. Such endeavours are expected to give a significant boost to India’s logistics efficiency.
Source: Fibre 2 Fashion
Mop-up increases 28% YoY in August to Rs 1.43 trillion; most big states see double-digit growth in collections Goods and Services Tax (GST) collections remained above Rs 1.4 trillion for the sixth month in a row, and increased 28 per cent year-on-year to Rs 1.43 trillion on better compliance, revival in consumption, and elevated inflation. The GST mop-up in August 2021 was Rs 1.12 trillion. However, revenue from the indirect tax witnessed a mild monthon-month dip from Rs 1.49 trillion collected in July. Despite imposition of GST on pre-packaged food items from July, the collection saw a dip as compared with last month. “The growth in GST revenue till August over the same period last year is 33 per cent, continuing to display very high buoyancy. This is a clear impact of various measures taken by the GST Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis,” the Ministry of Finance said. Of the Rs 1.43 trillion collected, Rs 24,710 crore was the central GST and Rs 30,951 crore wa state GST. The integrated GST collected during the month was Rs 77,782 crore, which included Rs 42,067 crore collected on import of goods. From the IGST collected, the Union government settled Rs 29,524 crore to CGST and Rs 25,119 crore to SGST. This took the total revenue of the Centre and states to Rs 54,234 crore and Rs 56,070 crore, respectively. About Rs 10,168 crore was collected as cess during the month. And around 76 million eway bills were generated in July, marginally higher than the 74 million generated in June and 19 per cent higher than the 64 million in July 2021. Even as GST collections dipped marginally compared with the previous month, the impressive year-on-year (YoY) growth reflected the revival in consumption, improved compliance as well as elevated inflation, said Aditi Nayar, chief economist at ICRA. “Looking ahead, the YoY growth in GST collections is likely to remain well above 20 per cent in September, before tempering down to 12-15 per cent in Q3FY23, on a normalising base, trending close to the nominal GDP expansion,” said Nayar, adding that she continues to foresee a considerable upside in the CGST collections relative to the FY23 Budget Estimates, more than offsetting the expected loss in excise collections. The consistent high collections indicate an upward economic trajectory despite fluctuating Covid-19 cases, said Abhishek Jain, a partner at KPMG. He attributed the increase in GST mop up to inflation, and better compliance being ensured by the government. Experts also see high indirect tax collections in coming months due to the onset of the festive season in the country. “With the onset of the festive season, which is typically a large consumption driver for all businesses, the GST collections in the coming months would also be expected to be robust,” said MS Mani, partner at Deloitte India. States’ collection About 22 states and Union territories witnessed at least 15 per cent YoY growth in their collections in August. Most major states saw their mop-up increase over 15 per cent during the month, with Maharashtra seeing a 24 per cent growth in monthly collections at Rs 18,863 crore; Karnataka saw a 29 per cent increase in the mop-up at Rs 9,583 crore; Tamil Nadu collected Rs 8,386 crore, a rise of 19 per cent; West Bengal witnessing 25 per cent growth to Rs 4,600 crore; among others. Mizoram’s GST collections increased the most (78 per cent) to Rs 28 crore, while Manipur, Lakshadweep and Andaman and Nicobar Island posted a decline in collections as compared to last year.
Source:The Hindu Business Line
Though GFCF growth at 10-year high in constant price terms, but experts say that is overstated Though investments as a percentage of gross domestic product (GDP) rose year-on-year in the first quarter of 2022-23 (Q1FY23), they are still below the 30 per cent mark that is required to put the economy on a sustained growth path. Gross fixed capital formation (GFCF) rose to 29.2 per cent in Q1 compared to 28.2 per cent a year ago. However, it was lower than 30.7 per cent in Q1 of pre-Covid period of 2019-20. But if we adjust it for inflation, GFCF was 34.7 per cent in Q1, which was higher than the corresponding period of the previous year (32.8 per cent). It was also the highest in Q1 in 10 years, a point made on Wednesday by Ajay Seth, secretary of the Department of Economic Affairs. Bank of Baroda chief economist Madan Sabnavis said it is better to look at GFCF as percentage of GDP at current prices since its sources of finances like bank credits, external commercial borrowings and stock markets are not looked at from a constant prices perspective. From that perspective, GFCF numbers showed that there is improvement in investments in the country in the Q1 compared to the corresponding period of the previous year, probably aided by the government capex. However, it still has not recovered to pre-Covid period. Government capex rose 57 per cent to Rs 1.75 trillion in the first three months of the current financial year. However, Sabnavis was not sure of private involvement in GFCF to a great extent. He did not favour comparing GFCF sequentially since investments are bumped in the fourth quarter. Sabnavis said GFCF is still below 30 per cent of GDP. GFCF above 30 per cent is required to put the economy on a sustained economic growth path as was substantiated by the high growth period of 2005-6 to 2007-08. Sakshi Gupta, principal economist at HDFC Bank Treasury, said for long-term perspective GFCF at constant prices can be looked at but high 34.7 per cent is a tad exaggerated due to low base. While there is definitely improvement in investments as is shown by government capex numbers, the growth is overstated, she said. ICRA chief economist Aditi Nayar said government capex will be back-ended and will pick up in the second half of the current financial year.
Source: Business Standard
According to the latest Reserve Bank of India (RBI) data, loans to micro, small, medium, and large industries rose to Rs 31.82 trillion as of July end, up 10.5 per cent year-on-year (YoY). Credit growth in the industries segment hit an eight-year high as Indian corporates look to come out of their deleveraging phase and turn towards banks for their funding requirements given bond yields have moved up sharply as compared to lending rates of banks. According to the latest Reserve Bank of India (RBI) data, loans to micro, small, medium, and large industries rose to Rs 31.82 trillion as of July-end, up 10.5 per cent year-onyear (YoY). Even on a month-on-month (MoM) basis, it has witnessed a 0.4 per cent growth and on a year-to-date (YTD) basis, it is up almost 1 per cent. Credit to industry constitutes 27.7 per cent of the non-food credit of the banking industry. Last time, credit to the industries segment grew at such a pace in May 2014, when corporate credit growth clocked over 11 per cent growth. Loans to micro and small industries grew by 28.3 per cent YoY; medium industries by 36.8 per cent; while it was 5.2 per cent for large industries. According to a report by ICICI. Securities, sectoral lending to petroleum, iron and steel, petrochemicals, and mining were the key drivers of industry credit growth. On the other hand, telecommunications, textiles, food, processing, and other infrastructure offset the accretion partially. “Utilisation of existing sanction limits and re-leveraging in a few sectors led to industry credit breaking out of the range of Rs 28-29 trillion during the past three years. We believe revival in consumer demand, rise in private capex followed by rise in government expenditure can be potential triggers for industry credit growth, and catalyse overall credit growth revival,” it said. sharp rise in bond yields has led India Inc to reduce their reliance on capital markets and move towards bank borrowings for funding requirements. “Bond yields have risen faster than marginal cost of fundsbased lending rate (MCLR) of banks and this, perhaps, has prompted the industries to move from capital markets to the banking sector for funds. Also, since the federal reserve has started raising rates, the borrowing overseas for Indian corporates has become costlier, as a result, they are now borrowing domestically. Once bond yields stabilise, this trend could change,” said Anil Gupta, VP, financial sector ratings, ICRA. Corporate credit growth is mirroring the overall credit growth seen in the economy. The RBI’s latest data suggests that bank credit grew 15.3 per cent as of August 12, compared to 6.5 per cent in the year-ago period. Ashutosh Khajuria, executive director, Federal Bank, said, “The trend itself is suggesting that the overall credit growth is more than 15 per cent and lending to micro, small and medium industries is particularly healthy. Banks are well capitalised, many of the issues surrounding the NPA issue have been sorted out and as the economy recovers, they are ready to expand activities in sectors where they are convinced of credibility.” Banks have also become very competitive as far as rates are concerned to capitalise on any opportunity. HDFC Bank, the country’s largest private-sector lender, lost to competition wholesale loans of about Rs 50,000 crore after it increased interest rates in May, its management said in an analyst call after the bank’s Q1 earnings. Even the country’s largest lender, State Bank of India, had sounded off that some lenders are undercutting rivals and mispricing risks. Last month, SBI Chairman had mentioned that large portions of loans sanctioned by the SBI to corporates remain unutilised. “Bank lending, along with the government’s spending and the RBI’s actions, has a multiplier effect on the economy and we will see a concurrent rise in deposits too as the trend continues,” Khajuria said.
Source: Business Standard
Different industrial associations, including Bahadurke road Textile and Knitwear Association, Ludhiana Dyers’ Association, said state government had scrapped the proposed textile park project to establish a textile park near Mattewara forest after some environmentalists raised objections against the same Raising concerns over scrapping of textile parks near Mattewara forest and September 2023 deadline to shift the industry situated in mixed land-use areas, different industrial associations conducted a meeting with housing and urban development minister Aman Arora during his visit to the city on Wednesday evening at a restaurant on Hambran road. Different industrial associations, including Bahadurke road Textile and Knitwear Association, Ludhiana Dyers’ Association, said state government had scrapped the proposed project to establish a textile park near Mattewara forest after some environmentalists raised objections against the same. But the government should now finalise an alternative site as the project would be a boon for the textile sector and establishment of the industrial park would also help the industry to expand in the international market, they said. President of Federation of Textile Associations of Ludhiana Tarun Jain Bawa and industrialist Ajit Lakra said the government cancelled the project in July, but it should be established at another site in the district to give a boost to the textile industry. The industrialists further demanded that the government should either extend the September 2023 deadline to shift the industrial units from mixed land-use areas or provide an alternative site to the industry on subsidised rates. They also raised concern over the deplorable road infrastructure in Focal Point and industrial areas. President of Federation of Industrial and Commercial Organisation (FICO) Gurmeet Kular said 90 per cent of the bicycle and sewing machine units in the city were situated in mixed land-use areas. “As per the master plan, 15,000 industrial units have to be shifted by September 18, 2023, which is not an easy task. To save the MSME industry from closure, the government should extend the deadline and allow these to operate in mixed land-use areas only,” he said. The other demands of the industry included expediting the work to establish Halwara airport, establishment of exhibition centre and working women hostel, power supply at ₹5 per unit etc.
Source: Hindustan Times
Tajikistan increased imports of textile products from Uzbekistan from January through July 2022, Trend reports referring to the State Committee of Uzbekistan on Statistics. According to the committee, exports of textile products from Uzbekistan to Tajikistan in seven months of this year amounted to $21 million, which is almost 2.3 times more than in the same period of 2021 ($9.2 million). The largest share of Uzbek textile exports from January though July 2022 fell on Russia ($698.3 million) followed by Türkiye ($373.8 million) and Kyrgyzstan ($273.2 million).Meanwhile, the total value of Uzbekistan's exports to Tajikistan in the reporting period amounted to $257.2 million, which is an increase of 6.3 percent compared to the corresponding period of last year ($241.9 million).
Source: Azer News
LAHORE: The US Cotton Council International (CCI) on Thursday urged Pakistan to manufacture and export textile goods to America after enormous value-addition. The advice came at a meeting held between the All Pakistan Textile Mills Association (Aptma) and the CCI, with the objective of apprising the body about cotton quality, challenges, and possible solutions vis a vis challenges being faced by Pakistani cotton growers. “Mutual cooperation between the American cotton growers and Pakistan’s textile industry offers a win-win situation for both countries where raw cotton imported from the US is converted into manufactured textile products and exported back to the US after enormous value addition,” said Kathleen Gibilisco, the Head of the Economic Wing of the US Consulate. She was accompanying the US’s CCI delegation that called on the Aptma office bearers, emphasised the need for growth and sustainability in trade and economic relations between Pakistan and the US. She expressed hope that the current trend of growth in trade and economic ties would continue in the future as well. The demand for improved product quality comes at a time when Pakistan is facing a severe shortage of approximately nine million bales this year due to various factors, including the devastation of the agriculture fields largely by floods. It may be mentioned that Pakistan’s cotton demand continues to rise, as it needs 15m bales this year. The Aptma and CCI representatives resolved to boost bilateral cooperation in the area of cotton and explore investment opportunities in Pakistan.
Source: The Dawn
Technical textile is a potential segment where Bangladesh has the opportunity to explore and expand its business. The global market for technical textile is projected to reach $208.5 billion by 2024 The readymade garment industry (RMG) of Bangladesh accounts for about 83% of the country's total export volume. The apparel industry of Bangladesh grew continuously in recent decades, making it the second largest in the world after China. The country exported RMG worth $42 billion in the last fiscal. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has envisioned achieving a $100 billion export target by 2030. So, for the steady growth of Bangladesh's RMG industry, we need to diversify our apparel export basket. Technical textile is a potential segment where Bangladesh has the opportunity to explore and expand its business. The global market for technical textile is projected to reach $208.5 billion by 2024 from $178.92 billion in 2020. Its market is assumed to reach $298.1 billion by 2030. Europe represents the largest regional market for technical textiles, accounting for an estimated 28.8% share of the global total. Technical textiles are engineered products with a specific functionality. They are manufactured using natural as well as manmade fibers such as Nomex, Kevlar, Spandex, and Twaron that exhibit enhanced functional properties, including higher tenacity, excellent insulation, improved thermal resistance, etc. These products find end-use application across multiple industries such as sports, construction, defense, agriculture, aerospace, automotive and healthcare sector. Technical textiles are also known as smart textiles. Manufacturers of technical textiles use both natural and manmade raw materials. Manmade materials, which currently account for 40% of total fiber consumption across the entire textile industry, include items like viscose, nylon, acrylic and polypropylene. Garments made of technical textiles can offer many qualities which traditional garments cannot; they can be antibacterial, insect repellent, flame retardant, odorless and much more, allowing the wearer to reduce risks and bodily harm. Technical textile is far more capital-intensive and requires greater use of technology than the apparel industry. Production of high-quality technical textiles and garments made of technical textile require a more skilled workforce, especially in the fields of inspection, raw materials testing, R&D as well as quality control through the manufacturing processes. Manufacturing processes require skilled middle management to deal with daily problems in a critical manner. Managers, such as those responsible for procurement, will also need to be well-versed in the technical specifications. So, launching training initiatives by individual companies can fill up the dearth of skilled human resources that the Bangladeshi entrepreneurs currently face in setting up a technical textile manufacturing unit. Depending on the category or level of staff to be trained, the companies may employ different training strategies. For example, for technical operators, where learning by doing is an important way to gain skills, newer employees can often be trained within the company, with mentoring by other more experienced technical operators. Countries such as China and India are already producing good quality technical textiles and will be formidable competitors. Innovation will be the key to carve out our niche in the technical textile segment. The greatest competitive advantage in the technical textile sector is possessing a unique product based on proprietary technology, which comes after extensive investment in R&D and product development activities. However, increasing prices of utilities and energy could dilute the low-cost advantage of doing business in Bangladesh particularly for manufacturers with high energy consumption, which is the case of technical textiles. Nonetheless, now is the time to seize the opportunity in the technical textiles market for Bangladesh. With the correct combination of investment and support, the country could compete effectively in technical textiles. To acquire more knowledge about both market demand and technology related to technical textile products, the government could send trade missions on fact-finding trips to international technical textile and trade show events. The shift from manufacturing the traditional apparel to technical textile apparel or smart apparel will require substantial efforts and effective collaboration among all key sectoral players. The future of Bangladesh's leap in technical textile obviously lies in synergies and collaboration across the entire apparel value chain.
Source: TBS News
Supply chain transparency is vital to meet sustainability goals and ensure companies use partners who share their values. But how practical is it to check everyone’s credentials? When it comes to managing a supply chain, transparency is everything. But it’s no longer only about improving efficiency and maintaining the visibility of moving goods. Instead, more companies are expanding the concept of supply chain transparency to check up on the sustainability credentials of their partners. Of course, achieving oversight of the supply chain for the purposes of sustainability can be a daunting prospect – especially if the supply chain in question has many stakeholders or crosses borders. And, understandably, many companies have prioritised simply getting their supply chains moving again after the pandemic, rather than focusing on sustainability. Broad definitions of sustainability can further complicate the process. Does it cover pay, working conditions and human rights, for example, or does it mean a tight focus on carbon footprint reduction and environmental stewardship? If it’s going to work, then, examining the sustainability practices of supply chain partners needs to be an embedded practice from the outset, rather than an afterthought. Ralph Kirkwood, head of procurement at electric bike manufacturer FreeFlow Technologies, says sustainability needs to be considered “at the point of contracting, [because] this is where you have the most leverage to demand some output from suppliers to align to your requirements, be that in relation to the product or service specification, or to wider sustainability goals.” He recognises that it can be “tricky” to assess commitment to sustainability during the tender evaluation but adds that these questions need to be asked from the outset to help companies work out if first-tier suppliers will “roll your commitment down the supply chain”. That requires leadership. “Suppliers want to see that the ultimate customer is serious about sustainability,” says Malcolm Harrison, CEO of the Chartered Institute of Procurement and Supply. “Often the ultimate customer is a larger organisation with more resources than other companies in the supply chain. A commitment to support and educate smaller suppliers is a positive action.” Increased public awareness of sustainability issues can also spur companies to examine their supply chains more closely. The textiles industry is one example of this, particularly after many clothing manufacturers were exposed in the media for poor working conditions, low pay and dangerous factories. Rob Webbon, CEO of sportswear manufacturer Presca Sports, says that when the business launched, few companies were creating sustainably made fabrics. “We would go to trade fairs and ask exhibitors to see their recycled or renewable fabric lines. We’d be taken to the back of the stand and shown a small sample of hangers – as if it was an afterthought,” he says. “Fast-forward a few years and now every textile company is desperate to show how sustainable they are. In many ways that’s great for the industry. But it does mean the market is much more open to greenwashing – and we need to be aware of that.” So, what’s the best way to get to the truth? Is it better to build confidence in that relationship by getting to know suppliers and seeking assurances on the basis of trust, or to set firm metrics that suppliers are expected to hit? Max Winograd, VP for connected products at manufacturing specialist Avery Dennison, says both approaches are important. “Trust is a foundational element in every business relationship but firm metrics are needed to ensure that these standards are adhered to.” Trust is a foundational element in every business relationship, but firm metrics are needed to ensure that these standards are adhered to He adds that genuine traceability means companies can prove where their components originated, can demonstrate regulatory compliance in all markets where products are made and sold and can show that environmental and ethical considerations have been followed. For Harrison, metrics are essential, even if they’re not used as hard targets. Instead, they can be useful for showing progress, especially early in the relationship: “Sustainability is a long-term goal and, as such, continuous improvement is key in the short term. Then it’s about hitting targets in the long term.” At flooring manufacturer Interface, a supplier code of conduct requires everyone along the supply chain to comply with all relevant environmental regulations and conduct operations in ways that minimise the impact on the environment. The company is helping 26 priority suppliers to identify projects in their operations to reduce greenhouse gases and is providing technical support to reduce the carbon footprint of manufacturing. “[We share] lessons we’ve learned and [collaborate] on potential solutions or new approaches, including sourcing alternative raw materials,” says Erin Meezan, Interface’s chief sustainability officer. “We are capturing more detailed life-cycle assessment data on the [26 suppliers’] materials to understand their carbon impacts better. These assessments will form a baseline that allows our supply chain team to develop a strategy to reduce carbon across that ecosystem.” But what about complicated, cross-border supply chains where monitoring, oversight and communication are all more of a challenge? Thankfully, this is where technology can play a greater role. Automating processes, such as questionnaires for stakeholders to complete during the movement of goods, and even live location analytics, can flag up risks. If compliance can be checked in real time, concerns can be managed before they become bigger issues. “With mobility analytics, companies can evaluate their supply chain networks, improve site selection for warehouses or distribution centres, and better understand supplier performance, which all can lead to a smaller carbon footprint,” says Jeff White, cofounder and CEO of location intelligence provider Gravy Analytics. “For example, location analytics can help companies understand truck traffic patterns within their supply chain and determine where bottlenecks might be occurring. With these insights, organisations could address logistics issues to reduce overall carbon emissions.” Interface’s Meezan agrees, noting that leveraging real data “is the most effective way to move the needle on achieving sustainability in our supply chain”. “We encourage our suppliers to measure their impacts by establishing tools like greenhouse gas inventories, as well as developing strong assessments of their current impacts through life cycle assessments,” explains Meezan. “Given that the raw materials in our products contribute the bulk of our impact, life cycle assessment data helps us – and our suppliers – understand the impacts.” Introducing the right technology, then, along with fostering a culture of trust and open communication, can not only help companies choose the right partners, but also retain relationships with existing partners. As Bob Glotfelty, chief growth officer at supply chain fintech company Taulia, puts it: “Since changing suppliers can be disruptive to the business or, in some cases, isn’t even possible, many businesses focus on encouraging improvements by their existing suppliers to match their commitment to sustainability.”
Source: Raconteur
The California state assembly in the United States recently passed a bill to end the use of perfluoroalkyl and polyfluoroalkyl substances (PFAS), or ‘forever chemicals’, in new fabrics and textiles. The bill prohibits manufacture, distribution or sale of any new textile articles having regulated PFAS and requires a manufacturer to use the least toxic alternative when removing regulated PFAS in textile articles. The bill was authored by Democrat assembly representative from San Francisco Phil Ting. If signed into law, it would be implemented from January 1, 2025. The Safer Clothes and Textiles Act would also require manufacturers to provide those that offer the product for sale or distribution in the state with a certificate of compliance stating that the textile article is in compliance with these provisions and does not contain any regulated PFAS. Exemptions to the bill include many textiles and fabrics used for safety reasons where PFAS fire retardant qualities and other benefits would prove to be invaluable, including vehicle component parts, personal protective equipment, military clothing, industrial filters and lab clothing. Several businesses and companies are, however, opposing the bill, saying the tight regulations will wreak havoc to inter-state commerce. Regulatory differences among states, weaker products without PFAS, heavy economic impact and confusing regulations are the other issues being cited.
Source: Fibre2fashion
