Exporters are also concerned about the sanctions potentially delaying the flow of payments to them for goods already supplied, said an official with another export promotion council. Days after the US and its allies imposed fresh wide-ranging sanctions on Russia over the latter’s declared annexation of parts of Ukraine, worried Indian exporters are reaching out to the government and state-backed export promotion councils to gauge how the sanctions will hit their ability to supply goods to Moscow. “While the latest sanctions may have limited impact on us, we have received lots of queries. Some of our members want to know who these sanctions are targeted at and how the situation will pan out,” said a senior official with one of the export promotion councils. “They are also worried about the sanctions potentially hitting their business links with some of the Russian importers. We will approach the government for more clarity on the issue,” he added. Exporters are also concerned about the sanctions potentially delaying the flow of payments to them for goods already supplied, said an official with another export promotion council. “They have also started talking to their banks to find out the precise nature of the sanctions and whether it will hit their transactions with Russian firms,” he added. India’s merchandise exports to Russia crashed by 30% between April and July to $714 million, despite Moscow showing greater interest in sourcing goods from New Delhi. The drop in exports is caused primarily by delayed payments in the wake of Western sanctions against key Russian financial institutions for its invasion of Ukraine and logistics challenges, according to the Federation of Indian Export Organisations (FIEO). Once the rupee settlement takes off, exports to Russia may rise to about $5 billion in FY23, against $3.3 billion a year before, said A Sakthivel, president of the FIEO, said recently. The RBI in July notified the new mechanism to settle international trade in rupees to reduce the depreciation of the rupee against the dollar. Already, Uco Bank and Yes Bank have firmed up arrangements with Russian banks under this mechanism, and more banks are supposed to follow suit. Once this payment system is fully operationalised, it may ease exporters’ concerns about payments getting stuck. On September 30, the US slapped sanctions on hundreds of Russian individuals and companies, including those in Russia’s military-industrial complex and lawmakers. Russian President Vladimir Putin had on the same day declared Russian rule over 15% of the Ukraine territory occupied by Russian forces. The US Treasury said it slapped sanctions on 14 people in Russia’s military-industrial complex, two leaders of the central bank, family members of key officials and 278 members of the legislature. The EU, too, proposed to impose more trade curbs and individual blacklistings. Russia’s state-run diamond miner Alrosa (a key supplier of rough diamonds to India) and the head of the Russian Orthodox Church, Patriarch Kirill, were put forward for blacklisting, Reuters reported, quoting unnamed sources. New import sanctions would cover steel and steel products, paper and timber, it reported.
Source: Financial Express
Hiring the best private sector talent, operational independence and target-setting and monitoring for sectors, states, and foreign missions may be some of the key responsibilities of the proposed dedicated trade promotion body that is part of the government’s plan to revamp the department of commerce. The move comes at a time India’s exports are facing headwinds due to a demand slowdown in key economies amid rising interest rates and geopolitical tension. According to the proposal, the body will enjoy operational independence and oversight from the department of commerce. Besides, it will have government and private sector talent, set targets for sectors, states and missions, and monitor them. It is part of the government’s strategy to make the department future-ready and take India’s exports from $650 billionto $2 trillion by FY31. The trade promotion body will cover 13 elements, including ‘brand India’, governmentto-government liaising, industry liaising and exporter training. The body will drive the overall export promotion strategy and export targets and monitor execution. It is in line with the government’s broad goal of projecting 100 Indian brands as global champions and placing India in the top three of the global services trade by 2047 in sectors such as tourism, IT&ITeS, business services, healthcare and wellness and education. Arpita Mukherjee, a professor at the Indian Council for Research on International Economic Relations, said that instead of having multiple export promotion councils, the plan might be to create a single umbrella trade body like KOTRA in South Korea or JETRO in Japan. “What will then happen to the multiple trade councils? If the trade promotion body has to do target-setting and monitoring, then it will require expertise in that area. The government has already created a Centre for Regional Trade. While the idea is excellent, as Japan and Korea have benefitted from one key organization, how it’s going to be implemented and structured needs more clarity. Another example is USTR of the US," added Mukherjee. The trade promotion body will act as a single data source for exporters and buyers. It will act as a marketplace for exporters, connecting them to buyers. It will also train exporters and organize buyer-seller events with a focus on strengthening supplies and bolstering demand. Queries emailed to the department of commerce on Saturday remained unanswered at press time. Pradeep S Mehta, secretary-general of CUTS International, a think tank, while welcoming the move, argued that the government must ensure its independence in functioning. “The government must appoint a private sector professional as the head of the institution with clear independence. It must also ensure that the government is out of it to avoid inability to function due to egos of bureaucrats and ministers," said Mehta. India accounted for 1.6% of global exports and 2.1% of global imports in 2020, according to the World Trade Statistical Review, 2021. India aims to scale up the production and export of pharma, gems and jewellery, marine and farm products, textiles and leather, engineering goods, electronics and telecom products, and chemicals. “Trade promotion councils and bodies should have representation from across the country, not just in a few chambers of commerce in Delhi. For example, in textiles, it is important to have representatives from Coimbatore and Tiruppur. If you talk about the auto component exporters, Maharashtra and Gujarat will know more," said Vijay Kalantri, chairman, MVIRDC World Trade Center, Mumbai.
Source: Live Mint
Under a 100-lakh-crore-rupee ($1.2 trillion) mega project called PM Gati Shakti -- Hindi for strength of speed -- Modi’s administration is creating a digital platform that combines 16 ministries. The portal will offer investors and companies a one-stop solution for design of projects, seamless approvals and easier estimation of costs. In India, half of all infrastructure projects are delayed, and one in four run over their estimated budget. Prime Minister Narendra Modi believes technology is the solution to these perennial and notorious bottlenecks. Under a 100-lakh-crore-rupee ($1.2 trillion) mega project called PM Gati Shakti -- Hindi for strength of speed -- Modi’s administration is creating a digital platform that combines 16 ministries. The portal will offer investors and companies a onestop solution for design of projects, seamless approvals and easier estimation of costs. “The mission is to implement projects without time overrun and cost overrun,” Amrit Lal Meena, special secretary of logistics in the ministry of commerce and industry, said in an interview in New Delhi. “Global companies choosing India as their manufacturing center is the objective.” Fast-tracking projects will give India an advantage, especially with China still largely closed to the outside world and companies increasingly adopting a China-plus-one policy -- finding other countries to expand in or source from -- to diversify their businesses and supply chains. Asia’s third-largest economy not only offers cheap labor, but also a talent pool of largely English-speaking workers, even though rickety infrastructure keeps many investors away.
Source: Economic Times
With international markets opening up and rising demand for locally made products, the Indian lifestyle industry is set to witness exponential growth over the coming years. However, the looming recession in US and European markets affecting apparel exports from India, rupee depreciation, inflationary pressure, and geo-political situations around the world are some concerns that the industry in India is facing. Recently Maersk in association with ETRetail, hosted a roundtable on the theme “Growing Local, Going Global: Unlocking the Next Leg of Growth for Lifestyle Manufacturers and Exporters” with industry veterans from prominent exporters and manufacturers in the country. Key discussions took place around the changing landscape of the industry, key challenges, and how local businesses can go up the value chain. Some of the insightful takeaways from this………. According to discussion, Ganesan from Bain and Company opined ‘Are customers ready to pay more for sustainable products?’ Commenting on it, Sujata Biswas, co-founder, Suta said that consumers today are willing to pay extra for sustainable products. While some agreed with the thoughts shared above, other leaders highlighted that they are focusing on bringing in sustainability in other ways like the fibers or raw material that they use, energy and water consumption, carbon emission reduction etc. However, as a result of these initiatives, the cost of the end product becomes slightly higher. Presenting his views, Sidhant Keshwani, MD, Libas said that because of price sensitivity, fashion retailers cannot be the first ones to lead sustainability unless there is the support of adequate policies and regulations. He highlighted that governmental policies and regulations on sustainability are highly important to push the sustainability goals for the industry as a whole. Updeep Singh, President, Sutlej Textiles opined that fast fashion can be sustainable by bringing in a circular economy. The concept of a circular economy is still relatively new and unexplored in India but could be a vast benefit for brands to reduce their carbon footprint as well as the cost involved in the pursuit of sustainability. Thangavel, VP, KPR Mill said that Srilanka and Bangladesh are competitive with Indian prices. However, as Indian manufacturers have better vertical integration of infrastructure, they are more competitive than Bangladesh and Srilanka. He added that this vertical integration from fiber to garment helps brands with margin increase, leads to lower in-house prices, and also helps gain advantage over Bangladesh. Ravi Singhee, MD, Magnum Clothing, shared the opinion that lifestyle brands in India “shouldn’t strive to be a more expensive Bangladesh proposition but aim for a cheaper Turkey model”. Singh from Sutlej Textiles highlighted that the Indian textile and garment industry has a broken value chain in terms of capacity. To be on par with the likes of Japan and Europe, businesses in India need to produce at least 40,000 looms per year over the next decade. But today, only about 5,000 looms are produced per year, he shared, adding that to bridge this gap, the textile ministry is considering bringing in an FDI policy in loom manufacturing. The garment is basically an engine for growth, but the rest of the processes in the value chain have to follow. Business leaders in the industry need to collaboratively focus on and develop the industry, academia and the government in order for the Indian industry to really move ahead and thrive.
Source: Economic Times
This is the first decline in exports since February 2021 and the trade deficit is almost 19% higher than a year ago India’s goods exports dropped 3.5% in September to $32.62 billion, while imports slid below $60 billion for the first time in seven months to $59.35 billion, 5.44% higher than a year ago. The trade deficit stood at $26.73 billion for the month. This is the first contraction in exports since February 2021 and the trade deficit is almost 19% higher than a year ago. While highlighting that the trade deficit in September was “an improvement over the trade deficit of $28.68 Billion in August 2022”, the Ministry explained that India’s “export in certain sectors has seen a decline on account of slowdown in some developed economies and a consequential slowdown in demands” while “certain measures to contain domestic inflation and domestic food security concerns have also impacted exports”. Non-petroleum, and non-gems and jewellery exports contracted 9.78% in September to $22.9 billion, from $25.38 billion a year ago, while imports of such products grew 16.78% to hit $36.5 billion from $31.26 billion a year ago. Six of India’s top ten export products, including engineering goods, chemicals, drugs and pharmaceuticals, readymade garments, cotton yarn and handlooms, and rice, recorded a contraction this September compared to last year. The sharpest decline in exports was recorded in cotton yarn and handloom products, which shrank 41.4% from $1.31 billion a year ago to just $767.5 million this September. Electronics goods exports, on the contrary, jumped 64% to hit $1.9 billion, while gems and jewellery shipments abroad increased 12.6% in value terms. Engineering goods exports, the mainstay of India’s exports prowess in recent times, dropped 17% to $7.81 billion from $9.41 billion in September 2021, while readymade garments of all textiles, a major employment generator, dropped 21.55% to little over $1 billion a year ago. “Value of non-petroleum exports in September 2022 was $26.54 billion, registering a negative growth of only 7.25% over non-petroleum exports of $28.62 billion in September 2021,” the Ministry said. Petroleum exports rose 17% to cross $6 billion, but imports of petroleum, crude and related products dropped 7% in September, as per early estimates released by the Commerce and Industry Ministry late Monday night. Restrictions on exports of broken rice and a 20% export tax on other varieties of the critical cereal, imposed during September, led to a nearly 6% drop in its exports during the month, while chemicals (down 1.7%) and pharma (0.13% lower). reported milder declines. Coal imports jumped nearly 57% from $2.18 billion a year ago to cross $3.43 billion in September, even as gold imports slid 28.5% to a little over $3.6 billion compared to $5.11 billion last September. Among the other major imports, vegetable oils, chemicals, electronics, and pearls — including semi-precious and precious stones — recorded marginal declines year on year during September. However, transport equipment imports jumped 63% to $2.87 billion, while iron and steel imports were up 35% and machinery imports rose 12% to nearly $3.6 billion. In the first half of 2022-23, exports of non-petroleum and non-gems and jewellery products stand at $158.68 billion, an increase of 5.53% over the last financial year, the Ministry pointed out, while total goods exports are up 15.54% at $229.05 billion.
Source: The Hindu
Several handloom workers are giving up their traditional skills and migrating to Mumbai, Delhi or Kolkata to switch to better-paying options. Others with professional degrees have moved to West Asia for a better future Anwar Ali Khan, 55, a resident of the Bazardiha locality in Varanasi, is an expert in the old art of embellishing silk saris with zari using a handloom. But over the last few months, he has been looking to leave the profession he inherited from his forefathers. “Five years ago, if the cost of making a sari was ₹4,000, we used to sell it for ₹4,500 or even ₹5,000, but now the cost has gone up to ₹6,000 and our customers are not ready to pay for it. I am looking for some other job to make ends meet,” he said. The fourth and latest All India Handloom Census 2019-20 estimated that 67.1% handloom households earn less than ₹60,000 a year, effectively meaning that if four members in a family are engaged, each artisan earns a measly ₹41 a day. Bazardiha’s weavers are no exception. Narrow lanes, huts and dwellings with no aesthetic beauty, pucca houses in disrepair – these define the area of Varanasi that is home to more than 1,000 weaver or bunkar families, mostly from the Muslim community. Mr. Khan’s neighbour, Ikram-ul-Huq, is feeling the pinch too. He struggles to pay the fees for his children in a nearby low-cost private school. Asked what needed to be done to uplift the weaver community, Mr. Huq replied with a sense of frustration, “What can you do? Just go and show the people that we are dying a slow death.” Govt. policies The weavers attribute their sharp slide to government policies, especially the roll-out of the Goods and Services Tax (GST), and the disruption wrought by the COVID-19 pandemic, even though the government often reiterates that it’s doing a lot to safeguard their interests. “Since the implementation of the Goods and Services Tax (GST), we are getting half the work we used to get. Before GST, if any bulk customer of ours had to sell 500 pieces of saris, he would take 600 pieces and pay in cash at times. But now, if the requirement is for 500 pieces, he would place an order for 400 pieces as GST has to be paid. No one wants to take the risk,” said Javeed, who employs seven workers in his handloom unit. Young men from families involved in zari weaving for generations have migrated to cities like Mumbai, Delhi, Kolkata and Pune to find menial jobs in textile factories. Some have quit the textile sector entirely, others with professional degrees moved to West Asia for a better future. Many weavers who lack formal education find it an uphill task to enrol in government schemes. The Handloom Department under the Ministry of Textiles has introduced a health insurance scheme, and the Mahatma Gandhi Bunkar Bima Yojana (MGBBY) for weavers, but only those who have formed cooperatives can benefit. The others have to obtain recognition certificates from the State Directorate of Handloom and Textiles in Lucknow to avail of insurance and health schemes. But getting the certificate is easier said than done. “We earn ₹10,000-₹12,000 a month and struggle to make ends meet. The paperwork is lengthy and requires travelling threefour times to the [State] capital,” Mr. Khan said.
Source: The Hindu
Wazir Advisors, leading textile and apparel focused management consulting firm, partners with ITA, Germany to offer sustainability, digitalisation and contract research services to the South Asian textile Industry. The Institut für Textiltechnik (ITA) is one of the top 5 institutes at the RWTH Aachen University. In a statement, Wazir Advisors informed that with this partnership, it aims to provide new-age services to textile, apparel and technical textile stakeholders in the Indian subcontinent who are looking to align with changing times and adopt best global practices. Wazir Advisors’ unique positioning and deep inroads into the regional industry, coupled with ITA’s technical prowess, will bring unmatched value to the industry. The assignments in India will be implemented in coordination with ITA’s India advisors –G. V. Aras and Dr. Mohit Raina. “Sustainability and digitalisation have moved from just being buzzwords to being immediate actionable for the textile industry. Push from global buyers as well as anticipated legislation in developed countries will cause the industry to embrace sustainable manufacturing processes sooner than later. Similarly, with the increasing cost of manufacturing, manpower shortage and need for faster decision-making, digitalisation is taking a centre seat in the industry,” said Prashant Agarwal, Wazir Advisors’ Co-founder and Partner. Dr. Thomas Gries, Head of the Institut für Textiltechnik of RWTH Aachen University (ITA), Aachen, Germany, said “The entire industry is at the cusp of a major transformation. New products and processes that are compliant with ESG norms will be the only way to success for the industry in near future. Asian countries have so far leveraged the cost aspect, now is the time for them to think about completely different parameters to evolve further. Our tie-up with Wazir Advisors will bring us nearer to industry stakeholders in South Asia so we can serve them better.”
Source: Apparel Resources
UNESCO, in its “Handmade for the 21st Century: Safeguarding Traditional Indian Textile” report, listed the history of the traditioal Indian textile crafts. Four handmade traditional textiles from Northeast India have found a mention in a UNESCO report titled ‘Handmade for the 21st Century: Safeguarding Traditional Indian Textiles’. The report is a representative sample of 50 Indian textile crafts from across the country that merits special consideration. The four handmade traditional textiles from the Northeast India include the Lasing Phee and Saphee Lanphee from Manipur, Lepcha weaving from Sikkim and the Risha textile weaving from Tripura. “Handmade textiles appear to be fast dwindling in the face of the demands of modernity. The painstaking process of their creation can take months, if not years, from ideation to execution, and simply cannot compete with industrial competitors,” the report says. It further says their circle is thus shrinking, with many crafts seriously endangered and a few lost forever. “In this context, it is absolutely essential that handmade textiles are taken stock of, and that they are properly mapped in all their diversity,” the report stated. The Lasing Phee from Manipur is a quilt stuffed with cotton batting, handwoven on the loom by weavers of the Cachar district in Manipur. It is extraordinarily warm and soft as the Lasing Phee double-layered weaving has an inner lining of cotton, which is inserted as a stuffing between parallel strips of weft cloth at regular intervals, which creates the quilting. The handloom industry is largely in the hands of the women of the Meitei community, which is Manipur’s largest community. The Lasing Phee quilt differs from usual cotton quilts in one respect. Unlike cotton quilts that are stitched, these are woven on a flyshuttle loom. “As new quilted products, lower priced and easily available, come into the market, they are replacing the Lasing Phee. Lack of contact with either domestic markets beyond Manipur or with international markets has kept the quilted textile limited to the state. It is important, therefore, to provide the weavers with adequate market links,” the report stated. UNESCO says with concrete efforts being made by the Government of Manipur and national retailers to source Lasing Phee textiles and create better market linkages, it is hoped that weavers will gain new and wider markets for their products. This unusual technique with its historic links needs active sustenance. Saphee Lanphee is a traditional shawl that is both woven and embroidered by the women of the Meitei community of Manipur. Only a few weavers and embroiderers of the Saphee Lanphee shawl continue the practice, although the shawl retains respect for what it represents to the Meitei community. “There is a demand for the Saphee Lanphee shawl in the wider market, and it is being replicated in much simpler forms for use in home furnishings, as a shawl or scarf, or stitched into coats, bags and other accessories. Due to the small number of weavers and embroiderers, however, it remains hard to source,” the report said. “The tradition of Saphee Lanphee has been handed down from generation to generation, orally and through practice. As fewer women were engaging in the practice of weaving and embroidery, the Government of Manipur has ensured that training programmes for local women carry forward their legacy and preserve this age-old craft” the report added. In Lepcha weaving of Sikkim, Lepcha weaves are characterized by intricate and colourful motifs patterned in stripes and woven on the back-strap loom. Now woven from yarns of cotton and wool, these were earlier made of nettle plant fibres and raw silk. Lepchas are a community indigenous to Sikkim, with a small population of about 75,000 spread across Sikkim state and Darjeeling district. The Lepcha weave is a versatile fabric used to make a range of products such as blankets, dhurries, bags, belts, furnishings and the Lepchas’ traditional coats and clothing. The Directorate of Handicrafts and Handloom (DHH) has advanced the use of frame looms for weaving Lepcha textiles. Weavers who move away from the traditional backstrap loom are sent for further training to Assam, where they learn to use the frame loom. The traditional back-strap loin loom is now confined to training centres and village households, and very few practitioners of this technique remain. “Changing tastes have led to declining interest in traditional dresses, which has adversely affected the craft. Extensive scholarly documentation of the traditional technique of Lepcha weaving and its design vocabulary and cultural significance is needed,” the report added. In the Risha textile weaving of Tripura, the patterning, colours and motifs of Risha textile weaves are differentiated according to the clan or the tribe for whom they are made. The tribal women of Tripura, especially the southern part of Tripura, weave the Risha cloth using a loat home at home. The skill is passed on from mothers to daughters. They weave motifs inspired by nature and daily objects. Each tribal community has its own motifs. The colour combinations of motifs are different in each community “Older tribal women and those living in rural areas continue to wear their customary clothing and prefer its designs, material, style and colour. The younger generation, however, has largely adopted modern dress. “The change in the socio-economic status of tribal women is reflected in changes to their traditional costume. Another reason for the decline of this textile craft has been the gradual replacement of Risha with ready-made, easy-to-wear blouses rather than unstitched draped cloth. The report says fewer women are learning to weave, as education and lifestyle changes have impacted tradition and it is a great challenge to develop, continue, maintain and pass on traditional knowledge systems and values to future generations. “The lack of markets outside the state has prevented skilled Risha artisans from selling their products to a wider consumer base. However, the Government of Tripura is working towards promoting Risha as Tripura’s signature garment. Designers, too, are using the weave in their clothes” the report says. UNESCO says textiles are made by hand across the length and breadth of India and are a source of primary and supplementary income for many Indians. “While many historic traditions have thrived in modern times, innovating to adapt to changing tastes and technologies, others lie on the margins between vulnerability and endangerment. Many facets of the hand skills sector remain largely unacknowledged, resulting in a gap between policy formulations and ground realities” it says. Some reasons for this are the lack of a united voice, absent or inadequate data on practitioner communities, and a general lack of purpose for them in the wider context of a rapidly developing nation. “All these factors and more impact the many practitioners and transmitters engaged in handcrafting and hand-making heritage textile traditions, which could, therefore, face issues of sustainability and sustenance in the future,” the report said. “Policy measures must ensure the continuance of these living traditions so that the hand skills sector remains relevant, buoyant and an integral part of India’s rich cultural heritage for generations to come,” it added.
Source: East Mojo
Coming out of the pandemic, consumers in India have expressed a strong desire to buy more discretionary products during the festive season, according to Deloitte's Global State of Consumer Tracker Coming out of the pandemic, consumers in India have expressed a strong desire to buy more discretionary products during the festive season, according to Deloitte's Global State of Consumer Tracker. Deloitte's latest analysis indicates that consumers are willing to increase spend on both travel and hotel stays. They also intend to buy either a new or used vehicle within the next six months. "Despite concerns over inflation, the planned spending over the next four weeks will see spike across age groups in all categories," Deloitte said in a press statement. Consumers' intent to purchase clothing, electronic and home furnishing, and recreation, entertainment and leisure, indicates a positive spending pattern triggered by the upcoming festive season. "The survey findings clearly indicate that consumers plan to increase their discretionary spend by 30 per cent (on items such as recreation and entertainment, restaurants, and leisure travel) in August 2022, compared with April 2022," it said. The current wave indicates consumers surveyed were willing to travel to domestic and international destinations. With 'mask-lift' announcements and easing out of other COVID-related restrictions in some countries, about 88 per cent Indian consumers plan to spend on leisure travel in the next four weeks. "The upcoming festivities and sale offers play a key role in propelling the Indian auto industry, which is expected to grow at a high pace in the next six months," Deloitte said. "The tracker indicates that surveyed consumers' intent to buy a vehicle grew by 9 per cent in the past four months." As on August 2022, 78 per cent Indian consumers surveyed across age groups plan on buying a vehicle in the next six months; of which, 84 per cent plan to buy a new one. The prominent reasons for purchasing a vehicle were high maintenance cost of old vehicles and new features offered in latest models. Commenting on the latest trends of the Global State of Consumer Tracker, Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP, said, "In the past year, consumers have been unwavering in their priorities - they still feel introspective, and focused on health, well-being, and purpose." "Our recent wave 34 tracker indicates that despite the concerns over inflation, Indian consumers are willing to increase their spending during the upcoming festive season. "Clearly online purchases remain strong, albeit to a lesser extent than during the peak of the pandemic. Relevant sectors, such as consumer products and retail, automotive, and travel and hospitality, look to benefit from the buoyant mindset of the consumers covered in the survey," he added.
Source: Business Standard
Factory activity in China expanded in September with rise in production and new orders, reflecting a momentum in economic recovery amid a better domestic COVID-19 situation and intensified macroeconomic policy support, according to officials and experts. The official purchasing managers’ index (PMI) for manufacturing was 50.1 in the month, up from 49.4 in August. A PMI reading above 50 indicates expansion, while a reading below that number reflects contraction. The sub-index for production stood at 51.5 in September, up by 1.7 points from the previous month, , data from the National Bureau of Statistics (NBS) showed. Demand continued to increase as the sub-index for new orders rose 0.6 point from August to 49.8, NBS said. "As measures of stabilising the economy continued to take effect in September and the negative effects of heat waves waned, manufacturing PMI has bounced back to expansionary territory," senior NBS statistician Zhao Qinghe was quoted as saying by official Chinese media. China's non-manufacturing PMI was 50.6 in September, down from 52.6 in August. Experts, who expect further fiscal and monetary easing, such as proactive infrastructure spending, as well as supportive credit to manufacturing and realty, have cautioned against downward pressures and uncertainties both at home and abroad.
Source: Fibre 2 Fashion
Cambodia has increased its monthly minimum wage to US$200 from the current US$194. The minimum wage standard only applies to the textile, garment, and footwear industries. Workers will continue to receive their benefits such as attendance bonuses, travel and accommodation bonuses, meal allowances, and overtime pay. Cambodia’s government has agreed to increase the minimum wage for the country’s textile, garment, and footwear (TGF) industries to US$200 per month from the current US$194 per month. Unlike other countries, the minimum wage in Cambodia applies only to specified industries. The National Council on Minimum Wage (NCMW), a tripartite body comprising equal representation of labor unions, employer’s associations, and the government sets the minimum wage. The Ministry of Labor and Vocational Training announced the results of a tripartite vote on four possible wage increases: US$198, US$206, US$210, and US$213. Of the 51 council members, 46 voted for US$198 which was increased to US$200 after an intervention by Cambodia’s Prime Minister Hun Sen. In determining the minimum wage, the NCMW studies the following criteria: • Inflation; • Cost of living; • Productivity; • Competitiveness; • Sector profitability; and • The current labor market situation. The new salary will be effective from January 1, 2023. What other benefits do workers receive? In addition to the minimum wage, workers will also receive the following benefits: 1. Attendance bonus — US$10 per month; 2. Travel and accommodation expenses — US$7 per month; 3. Meal allowances — US$0.50 per day; and 4. Overtime and seniority bonus — US$2-US$11 per month for those between their second to the eleventh year of work. Workers on probation are to receive US$198 per month. Workers who are paid based on productivity can earn more than the minimum wage; however, if the amount they produce earns them less than the minimum wage, then the employer has to add the remainder to a total of US$200 or US$198 for workers on probation. The textile, garment, and footwear industries continue to be the lifeline of Cambodia’s economy Textiles, garments, and footwear manufacturing, or TGF continue to be the backbone of Cambodia’s economy, despite efforts to diversify. The industries are the country’s largest employers with over 700,000 workers and represent 80 percent of total export earnings. Data from the Garment Manufacturers Association in Cambodia (GMAC) showcased that the export of textile-related products reached US$11.3 billion in 2021, an increase of 15 percent from 2020. From this total, garments accounted for approximately US$8 billion, footwear US$1.3 billion, and travel goods (backpacks, handbags, wallets, suitcases, etc.) US$1.4 billion, and other related products, US$0.49 billion. Cambodia’s TGF industries suffered at the height of the pandemic with some estimates suggesting that half of all factories in the first half of 2020 had to halt production, either temporarily or permanently. In early 2022, the Cambodian government launched the Garment, Footwear, and Travel Goods Sector Development Strategy 2022-2027 with its objective to develop TGF manufacturing into sustainable, high-value-added industries, capable of supporting economic diversification. The strategy focuses on these key measures: • Strengthen human resource capabilities to increase productivity and create better career paths for workers; • Continue improving worker welfare and working conditions; • Increase foreign and domestic foreign investment with a focus on producing high-end products; and; • Develop new export markets.
Source: ASEAN Briefing
With 21.44 per cent share, trousers & shorts was the dominant category in Australian total apparel imports of $3.761 billion during the first half of this year. This was followed by jerseys with 15.87 per cent share, and shirts with 9.78 per cent share. These three products together accounted for more than 45 per cent of total apparel imports by Australia. Australia’s import of trousers & shorts stood at $806.571 million in January-June 2022, according to Fibre2Fashion’s market insight tool TexPro. Jerseys and shirts imports were valued at $596.900 million and $367.767 million respectively. The import of other products among the top ten were T-shirts (9.57 per cent), dresses (8.98 per cent), innerwear (8.12 per cent), jackets & blazers (5.92 per cent), nightwear (2.89 per cent), baby wear (2.84 per cent) and socks (2.77 per cent). Australia’s apparel imports stood at $664.250 million in June, $618.648 million in May, and $588.823 million in April 2022. The country had imported apparel worth of $7.386 billion in 2021, $6.363 billion in 2020 and $6.602 billion in 2019.
Source: Fibre 2 Fashion
The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, earlier in the year, during a visit to the Kaduna Trade Fair and visits to farms across the country used those opportunities to put some of his policies in perspective. Considering past policy failures with regard to the financing of Small and Medium Enterprises (SMEs) as well as the agricultural sector, to most ardent observers, his policies are obviously futuristic in content and will become a success reference point soon may be after he has done his bit and moved on. Those policies will remain significant strands of the Emefiele legacy as a central banker who dared to make a change many consider as positive. On a visit to one of those farms in Edo State benefitting from his intervention, Emefiele asserted that the bank’s infusion of fund in the agricultural sector saved the Nigerian economy at a critical moment and gave a boost to productivity in the sector in the last six years. At that Trade Fair, he used the opportunity of the business expo to inform Nigerians that farmers received N948 billion while Small and Medium Enterprises (SMEs) and households have so far received N368.79 billion within the period under review. A breakdown of these figures indicates that a total of 4,478,381 smallholder farmers who received N948 billion loans from the Central Bank of Nigeria (CBN) have cultivated 5.2 million hectares of farmland across the country and created 12.5 million direct and indirect jobs. Similarly, CBN has also disbursed N368.79 billion to over 778,000 beneficiaries comprising 648,052 households and about 130,000 Small and Medium Enterprises (SMEs). Experts analysing the trends in the agricultural sector from November 2015, when the Anchor Borrowers’ Programme (ABP), intended to create a linkage between anchor companies involved in the processing and small holder farmers (SHFs) of the required key agricultural commodities was launched, aver that there is no denying the fact that the level of interest in agriculture had grown exponentially with resounding positive effects on the economy generally. It is pertinent to note that coming up with several initiatives aimed at repositioning the sector, the CBN proved that it can be done. There is evidence on ground to prove that many small holder farmers have been empowered, jobs have been created and invariably the sector has made vital contribution to the expansion and growth of the nation’s Gross Domestic Product (GDP). While formulating the agriculture policy in the early days of his tenure in office, Emefiele might have been driven by the passion to diversify the economy. But beyond that, he was also encouraged to follow that direction as a way to significantly grow the local economy through a combination of other policies such as Youth Entrepreneurship Development Programme (YEDP); Export Stimulation Facility (ESF); Agribusiness/Small and Medium Enterprises Investment Scheme (AGSMEIS), Paddy Aggregation Scheme (PAS); Accelerated Agricultural Development Scheme (AADS) which gave a boost to the income levels and financial capacity of local farmers. Furthermore, the Tertiary Institutions Entrepreneurship Scheme (TIES) is a policy designed to unleash the potential of graduate entrepreneurs (gradpreneurs) by providing re-orientation, training, and innovative financing model that will enhance entrepreneurship. The broad objective of the 100 for 100 policy on production and productivity (PPP) is to boost production and productivity, necessary to transform and jumpstart the productive base of the Nigerian economy. It is also expected that the initiative will reverse the nation’s over-reliance on imports, by creating an ecosystem that targets and supports the right companies and projects with potentials to immediately transform and kick-start the productive base of the economy. About N23.20 billion has been disbursed to the first set of 28 beneficiaries comprising 14 in the manufacturing sector, 12 in the agricultural sector and two in the healthcare sector. The use of instruments such as the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL); Real Sector Support Facility (RSSF); The Nigeria Electricity Market Stabilization Facility (NEMSF); Entrepreneurship Development Centres (EDCs) incentivized operators in the sectors in a significant way. The CBN, by consistently drawing attention to the effect of its policies on the economy, is trying to remind not just political actors but also operators in the business environment that with focus and commitment much can be achieved to the benefit of the nation in general. It is also appropriate to observe that the dedication brought to bear on the implementation of these policies helped in no small measure in revamping the economy with agriculture shifting from a way of life where people practice it for sustenance to a business enterprise that is generating employment opportunities in quantum not to mention economic empowerment to the local people who now see themselves as key players in the drive to add value to primary products. Also, the CBN had invested over N120 billion across the Cotton, Textile and Garment (CTG) value chain since the inception of its intervention programme in the industry. CBN’s Deputy Governor in charge of Corporate Services, Mr. Edward Adamu, had disclosed that over 320,000 farmers had been financed between 2018 to date, adding that expected output for seed cotton is projected to be over 300,000 metric tonnes in 2020. Adamu had stated that this was expected to enhance the production capacity of the ginneries in producing over 102,000 metric tonnes of cotton lint, which should meet and surpass the cotton lint requirement of the textile industry in the country. According to him, the domestic demand for cotton is currently met through local production, thereby halting the importation of cotton for the textile industry as well as increasing capacity utilisation of ginneries, which now operate throughout the year compared to months in the recent past. Also, a total of 19 ginneries had been resuscitated nationwide and more are expected to become operational this year. He said the apex bank’s enhanced drive toward antismuggling was already yielding positive result with over 15 textile smugglers’ accounts frozen. “A lot of progress has been made, but at the same time more needs to be done to ensure that we build an inclusive economy that supports domestic production of goods and services, while offering job opportunities to teeming Nigerians. “This assignment has been bestowed upon us all by the President of the Federal Republic of Nigeria, Muhammadu Buhari, who remains extremely supportive of the agricultural sector revolution due to its role in ensuring food security, creating jobs and stabilising the Nigerian economy,” he added. Adamu said the revival of the textile sector remained vital to the country’s growth objectives, adding that the CBN’s interventions are designed to resuscitate and return the industries back to its glorious days of job creation, economic diversification and achieving self-sufficiency in cotton production as well as minimise and eradicate smuggling and dumping of textile goods and facilitation foreign reserves’ accretion. On his part, CBN Director, Development Finance Department, Mr. Yila Yusuf, had identified smuggling of textiles as the biggest challenge in the efforts to reposition the sector. “As you are aware a lot of them (smugglers) their accounts have been blocked. As restitution, we are telling them to go patronise the local textile factories,” he added. He said the CBN was also working with the uniform services to enhance patronage of locally-made fabrics which are of high quality. Also, before the policy shift of the Emefiele administration, Nigeria spent a huge sum on the importation of food items that could be produced locally. At the peak of that jamboree, N1 trillion was recorded as importation bill which obviously was not sustainable. His intervention through a well-designed financial support has helped to increase the contribution of the agriculture sector, in particular, to the nation’s Gross Domestic Product (GDP). According to data from the Nigeria Bureau of Statistics, NBS, agriculture sector’s contribution to GDP rose to 22.35 per cent in Q1’21, from 19.79 per cent in 20215. Most notable is the 2.2 per cent real growth recorded by the agriculture sector in 2020, when the economy as a whole contracted by 1.92 per cent. Significant in this regard is the 3.4 per cent real growth recorded by the sector in Q4’2020, the highest growth since 2017.
Source: This Day Live
The business community in India is very much interested in doing business with Sri Lanka, said the President of Dhronacharya Business Council of India M. Gunaseelan in Colombo. India had been a true friend of Sri Lanka from ancient times, he said at the National Chamber of Commerce of Sri Lanka after the conclusion of the business visit to Sri Lanka with the Dhronacharya International Business Council India. He said that the Indian business community now has positive sentiments towards Sri Lanka. “This is the reason for our delegation to be in Sri Lanka to explore the possibilities in the trade and investment aspects.” Further Gunaseelan noted that his business Council will continue to bring more and more business delegations to Sri Lanka. The 18-member business delegation consisted of importers, exporters and potential investors from the industry mix of food & agricultural products, trading, textile manufacturers, auto component manufacturers, IT products and services, civil construction, building materials, electrical services, media equipment, and engineering institutions owners etc. There were more than 50 Sri Lankan business organizations that joined the B2B session with the intention of exploring business opportunities. Addressing the business forum President of the NCCSL, Nandika Buddhipala appreciated the interest taken by the delegation and thanked the Indian government for the support extended during the most difficult time Sri Lanka is going through. He further stated, the Indian economy was opened in 1990s much later than Sri Lanka, however, managed to achieve a tremendous progress in attracting FDIs and increasing international trade discounting the fact that their ability to resort to home grown solutions being second most populous, fifth largest GDP and seventh largest country by area in the world. The National Chamber also acknowledged the support and the guidance extended by the Indian High Commission in Sri Lanka and Deputy High Commissioner of Sri Lanka in Chennai Dr. Venkateshwaren in organizing the delegation visit and the support extended by the Export Development Board of Sri Lanka.
Source: Daily News
Readymade garment (RMG) exports from Bangladesh increased by 13.41 per cent to $10.274 billion in the first 3 months of fiscal 2022-23 (July-June) compared to exports of $9.059 billion in July-September 2021, as per provisional data by the Export Promotion Bureau. Exports were 2.52 per cent more than the target of $10.021 billion for July-September 2022. Knitwear (Chapter 61) exports witnessed a lower growth compared to woven RMG exports. Exports of knitwear increased by 9.40 per cent to $5.649 billion in JulySeptember 2022, as against exports of $5.164 billion during the same months of the previous fiscal. Exports of woven apparel (Chapter 62) increased by 18.73 per cent to $4.624 billion during the period under review, compared to exports of $3.895 billion during July-September 2021, as per the data. Home textile exports (Chapter 63, excluding 630510) increased by 26.59 per cent to $353.48 million during the period under review, compared to exports of $279.23 million during July-September 2021. Woven and knitted apparel, clothing accessories and home textile exports together accounted for 80.06 per cent of Bangladesh’s total exports of $12.496 billion during July-September 2022. RMG exports from Bangladesh had witnessed an increase of 35.47 per cent to $42.613 billion in fiscal 2021-22 compared to exports of $31.456 billion in fiscal 2020-21. Bangladesh had achieved an all-time high in terms of value of RMG exports in 2021-22. The total exports also breached the target of $43.500 billion with 19.73 per cent rise during the period.
Source: Fibre 2 Fashion
