The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has notified the establishment of the Credit Guarantee Scheme for Startups (CGSS) for providing credit guarantees to loans extended by Scheduled Commercial Banks, Non-Banking Financial Companies and Securities and Exchange Board of India (SEBI) registered Alternative Investment Funds (AIFs). CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. Startups as defined in the Gazette Notification issued by DPIIT and amended from time to time. The credit guarantee cover under the Scheme would be transaction based and umbrella based. The exposure to individual cases would be capped at Rs. 10 crore per case or the actual outstanding credit amount, whichever is less. In respect of transaction-based guarantee cover, the guarantee cover is obtained by the MIs on single eligible borrower basis. Transaction based guarantees will promote lending by Banks/ NBFCs to eligible startups. The extent of transaction-based cover will be 80% of the amount in default if the original loan sanction amount is up to Rs. 3 crore, 75% of the amount in default if the original loan sanction amount is above Rs. 3 crore, and up to Rs. 5 crore, and 65% of the amount in default if the original loan sanction amount is above Rs. 5 crore (up to Rs. 10 crore per borrower). The umbrella-based guarantee cover will provide guarantee to Venture Debt Funds (VDF) registered under AIF regulations of SEBI (a growing segment of funding in Indian startup ecosystem), in view of the nature of funds raised by them and debt funding provided by them.The extent of umbrella-based cover will be the actual losses or up to a maximum of 5% of Pooled Investment on which cover is being taken from the fund in eligible startups, whichever is lower, subject to a maximum of Rs.10 crore per borrower. Along with institutional mechanisms for operationalizing the Scheme, DPIIT will be constituting a Management Committee (MC) and a Risk Evaluation Committee (REC) for reviewing, supervising and operational oversight of the Scheme. The National Credit Guarantee Trustee Company Limited (NCGTC) will be operating the Scheme. Prime Minister, Shri Narendra Modi launched Startup India Action Plan on 16th January 2016 to lay the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country. The Action Plan envisaged a Credit Guarantee Scheme to catalyze entrepreneurship through credit to innovators and encourage banks and other member institutions in the ecosystem for providing venture debt to startups. A dedicated credit guarantee for DPIIT recognised startupswill address the issue of unavailability of collateral free loan and enable flow of financial assistance to innovative startups through their journey to becoming full-fledged business entities. The Scheme further reiterates Government’s focus towards promoting innovation and fostering entrepreneurship for making Indian startup ecosystem the best in the world. With the objective of mobilising domestic capital for Indian startups, CGSS will complement the existing Schemes under Startup India initiative viz. Fund of Funds for Startups and Startup India Seed Fund Scheme. The framework of CGSS has been prepared in extensive consultations with the stakeholdersover the years with line ministries, banks, NBFCs, venture debt funds, academia and experts from startup ecosystem. The Scheme will act as a key enabler and risk mitigation measure for the lending institutionsenabling collateral free funding to startups.
Source: PIB
"There are visible symptoms of recession in the EU. Energy crisis is looming there. Buyers are delaying orders from India. They are concerned but hopeful," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. Exporters are keeping their fingers crossed due to "visible" recessionary trends in the European Union (EU) as it could affect demand for domestic goods in that market in the coming months. The EU is one of major export destinations for Indian exporters, accounting for about 15 per cent of India's total outbound shipments. "There are visible symptoms of recession in the EU. Energy crisis is looming there. Buyers are delaying orders from India. They are concerned but hopeful," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. He, however, added that the situation in the EU provides an opportunity for Indian exporters to enhance efforts to boost exports to countries like Russia. "Sanction of Russia gives us an opportunity to tap that market," Sahai said, expressing confidence that India's total merchandise exports would reach USD 470 billion in 2022- 23 as against USD 420 billion in 2021-22. Biswajit Dhar, a professor of economics at Jawaharlal Nehru University, said the government should rework its strategy on the export front as the EU situation is not good. "It is not just an energy crisis, it is a larger problem of slowing down of the economies in EU countries. That should be a source of concern for us. If major markets like the EU face such recessionary tendencies, our exports could actually suffer," Dhar said. Sharing similar views, TechnocraftIndustries founder and chairman Sharad Kumar Saraf said EU buyers are cancelling orders and it would affect the country's exports in the coming months. "Situation is not good at the export front, particularly for sectors such as textiles and chemicals," he added. Ludhiana Hand Tools Association President S C Ralhan said EU buyers are delaying accepting consignments, so exporters are a bit worried about the situation there. India's exports to the EU stood at USD 30.8 billion during April-August 2022. It was USD 65 billion in 2021-22. Commerce and Industry Minister Piyush Goyal held meetings with exporters on October 7 to discuss ways to promote growth of exports. He has stated that India must keep prospecting for new opportunities in the world market and utilise all such possible chances to expand trade. In the meeting, industry has flagged certain issues related to the rising cost of raw materials and subdued demand in certain key export markets due to high inventory levels. The industry requested inclusion of left out sectors under RoDTEP (Remissions of Duties and Taxes on Exported Products) and rationalisation of existing RoDTEP rates, exploring possibility for increased support under Interest Equalisation Scheme and Market Access Initiative (MAI). A decline in exports of sectors such as engineering, ready-made garments and rice led to a contraction in the country's overall outbound shipments by 3.52 per cent to USD 32.62 billion in September, while the trade deficit widened to USD 26.72 billion, according to the preliminary data of the commerce ministry. The Russia-Ukraine war is severely affecting global supply chains. Russia has also slashed the flow of natural gas to Europe.
Source: Economic Times
The Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and textiles, Shri Piyush Goyal today said that India would accord top priority to national interest in FTA negotiations. FTAs to be entered into after thorough consultation with all stakeholders including industry and the government will not diverge from this approach for the sake of deadlines, he added. The Minister was speaking at the meeting held to review India’s Export Performance in the first six months of this financial year with key representatives from Export Promotion Councils and Industry Associations in New Delhi today. At the meeting, the Minister emphasised on sustaining the export momentum and said that the interaction with Export Promotion Councils has given the confidence that Indian exports will be able to wither the global headwinds and will surpass last year’s exports by a big margin. He added that India must keep prospecting for new opportunities in the world market and utilize all such possible chances to expand trade. He also emphasised on doing a deep dive of services import and see the areas/sectors in which they are increasing. The industry participants were assured that Government is committed to address the issues raised by them. While concluding the session, the Commerce and Industry Minister urged the trade and industry to implement innovative ways of marketing, increase quality standards and take full benefit of Free Trade Agreements to achieve higher export growth in this financial year. At the review meeting, the Director General of Foreign Trade (DGFT) gave a presentation on year-on-year export trends vis-à-vis the major export markets of India, along with sectoral growths. The leading and laggard export markets/ sectors were specifically highlighted for specific attention and possible corrective actions. Industry was apprised on the healthy growth of around 15.5 % seen in the first six months of this financial year, as compared to previous year. The industry however was alerted on the dip in export performance in September 2022. Highlighting the healthy growth seen in some markets such as Latin America and Africa, it was informed that the evolving economic and geo-political environment required the industry to be attentive and optimistic so that growth opportunities in such new markets are not missed. An engaging round of discussion was held subsequently with EPCs and industry representatives on challenges, opportunities and way forward for increasing exports from India. Industry has flagged certain issues related to the rising of cost of raw materials and subdued demand in certain key export markets due to high inventory levels. Industry requested for including left out sectors under RoDTEP and rationalisation of existing RoDTEP rates, exploring possibility for increased support under Interest Equalisation Scheme(IES) and under Market Access Initiative (MAI), and operationalisation of Production-Linked Incentive (PLI) Schemes for additional sectors. The meeting was also attended by the Minister of State for Commerce & Industry, Smt.Anupriya Patel and Commerce Secretary, Shri Sunil Barthwal.
Source: PIB
The pan-India freight index by CRISIL showed an uptick in the freight rates due to a rise in the fast-moving consumer goods and durables (FMCD/FMCG). The freight availability also inched up on the back of Agri-products, parcel/loose goods, and cement, the CRISIL index highlighted. Among various commodities, the freight rates for FMCG/FMCD witnessed a sharper increase when compared to others, the CRISIL report noted. (Photo Credits: PTI) India’ freight activity inched up in September after maintaining a stable course in the second quarter of the current fiscal year. With the onset of the festive season, the freight rates as well as the freight availability showed a marginal increase, according to CRISFrex. The pan-India freight index by CRISIL showed an uptick in the freight rates due to a rise in the fast-moving consumer goods and durables (FMCD/FMCG). The freight availability also inched up on the back of Agri-products, parcel/loose goods, and cement, the CRISIL index highlighted. However, the scenario for commodities such as textiles, petroleum, mining products, auto carriers, market load did not show any onmonth improvement and was flat. Among various commodities, the freight rates for FMCG/FMCD witnessed a sharper increase when compared to others, the CRISIL report noted. A slight increase in freight rates was witnessed for parcel/goods, petroleum tankers, textiles, and Agri-products. According to the CRISIL freight index, steel was the only commodity that saw a dip month-on-month in freight rates. The improvement in the CRISFrex index also improved the free cash flows (FCFs) of transporters in September. The industry’s free cash flows (FCFs) maintained the three-month course and stayed at 20 per cent. The CRISIL index also highlighted how the freight rates have been strictly aligned with the fuel rates over the past few months. The utilisation levels also remained healthy, with commodities like Agri-products and parcel/loose goods witnessing a marginal improvement. The average number of trips per truck also improved slightly from the August levels. The pan-India index by CRISIL is constructed by factoring in the views and data of 100- 150 transporters to get insights into the freight dynamics and operational aspects such as key cost heads, trips, and commodities being carried. The operating cost includes things like driver, toll, maintenance, fuel, among other things. The index is built on the back of 159 route-commodity combinations spanned across 32 routes and 11 commodity types. The indicators mentioned in the index highlight the momentum of the economic activity in the country and the overall trucking scenario in India.
Source: Financial Express
Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today said that India must not restrict itself to be the back-office of the world, but must aspire to be its front-office. He was addressing Federation of Indian Chamber of Commerce and Industry’s (FICCI) National Executive Committee Meeting in New Delhi today. The Minister asked FICCI to re-orient themselves and aspire to become a think-tank rather than restricting themselves to being advocates for day to day industry issues. He asked the organization to study global trends and patterns in business and find meaningful and effective means to engage with these developments. Shri Goyal said that the world had huge expectations from India and not just for the immediate future but for the long term. He said that the world expected India to drive global growth, provide the talent pool that the world needs and spearhead technology transformations. The Minister said that world over, companies were planning to set up manufacturing plants and R&D facilities in India and hoping to hire its young and talented work force in significant numbers. The Minister pointed out that India’s large population is now considered as a boon by the world because of its potential to be the market of the future. He reminisced that there was a time when the people of India were worried about the very basic necessities of life such as food, clothing and shelter. He highlighted that Modi government’s relentless focus on improving the lives of people by ensuring that every single citizen had a good home with electricity, cooking gas, clean water and internet connectivity, toilets, road connectivity etc. had empowered India’s population to be aspirational. Shri Goyal said that the government was also taking sustained efforts to combat hunger by supplying food grains to over 80 crore people under National Food Security Act (NFSA) and in addition, providing 5 Kilograms food grains per month per person under PMGKY. He added that the government was able to ensure that no home went without food even during the challenging times of the pandemic. Shri Goyal said that India not only diligently vaccinated its population but also ramped up and augmented its healthcare infrastructure, including medical oxygen and ICU beds during the pandemic. He pointed out that India’s Ayushman Bharat which covered 500 million people was the largest successful health care program in the world. All these initiatives, the Minister said, had succeeded in meeting the basic requirements of life, empowering and enabling India’s population to aspire for better things in life and a better quality of life. The burgeoning middle class and greater participation of women in the workplace will create more and more opportunities for our manufacturing and service sectors, he added. The Minister spoke of India’s fast adoption of technology and said that with over 800 million smart phones, education had reached millions of homes during the pandemic through these devices. He spoke of the government’s ceaseless efforts to take good quality 4G to the remotest of areas in India and said that the country was now preparing for the roll out of 5G across the length and breadth of the nation. He asked industry to partner with the government to ensure that the whole nation has access to the multifarious advantages of 5G. Shri Goyal also emphasized on the need for India to embrace innovation. He asked the youth of the nation to nurture the spirit of enquiry and relentlessly tinker with ideas and find solutions for day to day problems of human existence using all possible tools that digital technology has to offer, from Artificial Intelligence to Machine Learning The Minister assured that the government has been trying to keep macroeconomic indicators strong. He observed that there was a time in India, almost a decade ago, when double digit inflation was considered as normal. He said that the government had mandated RBI to target inflation and keep it between 2-6%. He pointed out that while several developed nations were grappling with high levels of inflation, India has been successfully keeping inflation at moderate levels. Applauding RBI for its proactive interventions, the Minister said that RBI now had a holistic vision for macroeconomic stability. Speaking of Open Network for Digital Commerce (ONDC), the Minister said that just as UPI had democratized digital payments, enabling interoperability and bringing down transaction costs, ONDC would also help democratize the e-Commerce sector and bring in more transparency and fairness in the entire ecosystem. He further elaborated that ONDC, a set of open protocols, would safeguard customer’s choice, provide better market access to sellers and help bring the remotest corners of the country into the eCommerce framework by empowering them with digitization. Terming ONDC as a public good, Shri Goyal said that it would help save jobs and safeguard and empower small mom and pop stores in the remotest parts of the nation with the possibilities of technology. Shri Goyal also asked Indian pharma industry to become part of international quality protocols such as Pharmaceutical Inspection Co-operation Scheme (PIC/S). He asked pharma majors to handhold smaller manufacturers to institute Good Manufacturing Practices (GMP) so that India, which is touted to be the pharmacy of the world, is able to maintain the trust of the world. Shri Sanjiv Mehta, President, FICCI, Shri Subhrakant Panda, Senior Vice President, FICCI and other dignitaries were present at the National Executive Committee Meeting.
Source: PIB
Confirming this, SGCCI president Himanshu Bodawala said that the purpose of organising the textile event in Dhaka is that there is ample opportunity in the textile sector in Bangladesh. The Southern Gujarat Chamber of Commerce and Industry (SGCCI) will organise “Indian Textile Trade fair”, an exhibition cum fair, in Bangladesh’s capital Dhaka from January 11 to 14 next year. Confirming this, SGCCI president Himanshu Bodawala said that the purpose of organising the textile event in Dhaka is that there is ample opportunity in the textile sector in Bangladesh. “Bangladesh imports textile fabrics from different countires. Surat can be a part this textile fabrics supply. Major imports of textile fabrics is China, but Bangladesh is searching for other opportunities,” Bodawala said. The SGCCI expects a footfall of 20,000 including garment exporters, manufacturers, importers, distributors, wholesalers, fashion designers and textile businessmen, for the exhibition.
Source: PIB
India and Taiwan should firm up the proposed FTA at the earliest as it will remove all barriers to trade and investment and help create a resilient supply chain, Taipei's Ambassador Baushuan Ger said India and Taiwan should firm up the proposed free trade agreement (FTA) at the earliest as it will remove all barriers to trade and investment and help create a resilient supply chain, Taipei's de-facto Ambassador Baushuan Ger said. The Taiwanese representative said Taiwan is keen to share its expertise with India in critical sectors such as semiconductors, 5G, information security and artificial intelligence and that his country can be an "excellent" partner to develop India's hightech supply chain. He said Taiwan has been actively pursuing FTA with like-minded trading partners including India and reaffirmed Taipei's focus on supporting the rules-based international order. "The signing of the FTA will further remove all trade and investment barriers and lead to a jump in bilateral trade and investment," he told PTI. "In addition, it will help attract Taiwan companies to invest in India to establish production bases, sell India-made products to the world, and help India transform into a global manufacturing centre," Ger said. His comments came amid escalating tensions in the Taiwan Strait following China's military build-up in the region in response to US House Speaker Nancy Pelosi's visit to the self-ruled island of more than 23 million people in August. China considers Taiwan as its breakaway province. Taiwan is a leading producer of semiconductors globally and at least a couple of Taiwanese companies have shown interest in India's production-linked incentives (PLIs) scheme worth Rs 76,000 crore for the electronics sector. "To build on the momentum of increasing bilateral investment and trade collaboration, it is high time that Taiwan and India consider signing an FTA at the earliest possible in order to create a secure and resilient supply chain and more value-added platforms for long-term cooperation," Ger said. India does not have formal diplomatic ties with Taiwan but both sides have trade and people-to-people relations. Following the eastern Ladakh border row with China, some experts in India have been pushing for upgrading New Delhi's ties with Taipei, especially in the trade and investment sectors. The Taiwanese envoy said given the changing international political and economic dynamics, there is an opportunity for India to play a more important role in the supply chain "realignment". He said Taiwan has comprehensive supply chains and ecosystems in the manufacturing sectors including semiconductors and noted that a deeper trade collaboration would be beneficial to both sides. Last year, the two sides set up four groups with a focus on setting up of a semiconductor hub, training manpower for the industry, to explore a bilateral investment pact and a free trade agreement. "Since the US-China trade conflicts, Taiwanese companies have shown flexibility while acting in line with the government's 'New Southbound Policy'. Specifically, many have relocated their production bases back to Taiwan or to Southeast Asian countries," Ger said. "The sectors involved include high-end servers, ICT equipment, smart transportation, panels, and automated production lines, etc," he added. Unveiled in 2016, the New Southbound Policy is aimed at expanding political, economic, and people-to-people linkages with democratic countries including India. Ger said Taiwan has advantages in semiconductors and electronics manufacturing, including US-recognised 5G, clean network technology, as well as AI, information security and smart cities technology. He said Taiwan could be an "excellent" partner for India's high-tech supply chain and product development. "Other areas of potential cooperation include machine tools, photovoltaics, biotechnology and pharmaceuticals. We are looking forward to strengthening cooperation with India in these areas for mutual benefits," he said. The envoy said India has been actively attracting foreign investment and made every effort to optimise the investment environment with favourable incentives. "Therefore, specific examples show that Taiwanese major mobile phone manufacturers such as Wistron, Foxconn and Pegatron have successfully moved their production lines to India with the support of India's Production-linked Incentive (PLI)," he said. He emphasised that both sides can focus on specific areas and bring together related stakeholders, including public and private sectors, academia and think tanks to encourage and strengthen the resilience, security and stability of supply chains for each other. Ger said Taiwan has been actively pursuing FTA with like-minded trading partners. "Taiwan's 'New Southbound Policy and India's Act East initiative are instrumental in deepening our bilateral engagement," he said. "With an increasing domestic labour shortage, Taiwan is looking for a manufacturing partner. India has an abundant talent pool and will make a perfect partner for Taiwan," the envoy said. He further added that as the world's 22nd-largest economy in terms of GDP and a major semiconductor manufacturer, Taiwan plays a key role in the global supply chains. The envoy said as a defender of democracy, Taiwan is working to support the rules-based international order. Though India and Taiwan do not have formal diplomatic ties, the bilateral trade relations have been on an upswing. In 1995, New Delhi set up India-Taipei Association (ITA) in Taipei to promote interactions between the two sides and to facilitate business, tourism and cultural exchanges. India-Taipei Association has also been authorised to provide all consular and passport services. In the same year, Taiwan too established the Taipei Economic and Cultural Centre in Delhi.
Source: Business Standard
Bangladeshi mission expects to resume accepting National ID applications Bangladeshi expats must use financial institutions to remit money in order to support the nation’s efforts to build on its foreign reserves, the Bangladeshi Ambassador to the UAE has urged. Speaking to Gulf News, Mohammad Abu Zafar discouraged the use of informal fund transfer means, known colloquially in South Asia as hundi. “Following the pandemic, many nations are facing a crunch in their foreign reserves, including Bangladesh. Remitting through registered financial institutions like banks and exchange houses therefore helps support the economy back home, which also has an impact on the wellbeing of many an expat’s family living back home,” Abu Zafar said. “Additionally, I would advise expats to be prudent in their spending at a time of rising living costs globally,” he added. Cooperation seminar Zafar was speaking to Gulf News following an economic cooperation seminar designed to attract foreign direct investment into Bangladesh. The seminar was organised by the Embassy of Bangladesh in coordination with the Abu Dhabi Department of Economic Development, and saw the attendance of Emirati government officials and businessmen. The Bangladeshi delegation was led by Salman Fazlur Rahman, private investment and industry advisor to the Bangladeshi prime minister, who was accompanied by Nazmul Hassan, a member of parliament who represented the Bangladeshi pharmaceutical industry. Bilateral trade “Bilateral trade between the two countries stood at about $1.8 billion (Dh6.61 billion) in 2021, with $1.3 billion (Dh4.78 billion) the value of Emirati exports to Bangladeshi, and $500 million (Dh1.8 billion) the value of Bangladeshi export to the UAE. We are now seeking investment in a number of sectors, including food, agriculture, pharmaceuticals, healthcare, transportation and textiles. On the other hand, a number of investment proposals from the UAE have also been made, and they are yet to take off,” Abu Zafar said. The ambassador said there will be a follow-up taskforce to look at the most immediate opportunities. “We are also expecting a UAE delegation ton visit Bangladesh early next year. At the same time, we also encourage Bangladeshi businessmen to invest in the UAE, especially in areas of competitive advantage,” he said. Expat community There are currently around a million Bangladeshi expats living in the UAE, making the UAE home to the second largest community of non-resident Bangladeshis after Saudi Arabia. Bangladeshis are also the third largest expat group in terms of nationality, after India and Pakistan. The ambassador said the embassy and the Bangladeshi Consulate in Dubai could also soon resume accepting National ID applications. “We had suspended the process during the pandemic, but expect to restart it by the end of the year,” Abu Zafar said.
Source: Gulf News
The government’s initiative towards formal talks with Dhaka on a CambodiaBangladesh Free Trade Agreement to diversify the Kingdom’s export markets and lure more investment inflows has been met with enthusiasm and optimism from officials, the business community and other observers. At a recent meeting on the sidelines of the 77th UN General Assembly (UNGA) in the US’ New York City, Prime Minister Hun Sen and his Bangladeshi counterpart Sheikh Hasina voiced enthusiasm at the prospect of establishing a bilateral free trade agreement (FTA) with the Kingdom. Hasina stressed that the deal would help her country consolidate relations with ASEAN. Of note, Bangladesh is also forging ahead with preliminary work on proposed FTAs with Thailand and Malaysia. Ministry of Commerce spokesman Penn Sovicheat told The Post on October 6 that although Cambodia and Bangladesh have fairly similar export baskets, the pact could lead to sizeable economic gains, expanding trade flows in either direction, mutually reinforcing supply-and-demand relationships, and spurring investment between the two countries. Royal Academy of Cambodia economics researcher Ky Sereyvath said the two countries have a similar production and export structure, but noted that Bangladesh is the larger exporter of garments and other textile-related goods. He said the proposed FTA may prove a boon for Cambodian agricultural goods, especially spices, considering Bangladesh’s insatiable appetite for these aromatic or pungent vegetable substances. “At the same time, Cambodia can also import Bangladeshi merchandise that we cannot produce and re-export it at high prices, so the two countries would be diversifying exports for mutually economic benefits,” Sereyvath said. Amru Rice (Cambodia) Co Ltd CEO Song Saran welcomed the expected deal, noting that the Kingdom could ramp up production of milled rice for export to Bangladesh, in part driven by investment from the South Asian country. “It’d be swell if the two countries can strike a deal on cooperation in the supply and production of rice, trade and transport to Bangladesh. “Once the countries are signed on, I’ll also be conducting a detailed study on shipping, logistics, the milled rice types and other standards to ensure that their [the Bangladeshi market’s] needs and delivery times are met, and explore the possibility of Bangladeshi players directly investing in the processing of rice and transport back to their home country,” he said. The commerce ministry reported that trade between the two countries topped $22 million in the first nine months of 2022, up nearly 56 per cent from the more than $14 million recorded in January-September 2021.
Source: Phnom Penh Post
The logistics sector in China witnessed renewed growth momentum in September with a recovery in market demand and improved business operations, according to industry data. The index tracking the country's logistics market performance was 50.6 per cent in the month—a rise of 4.3 percentage points from the August figure, reversing a twomonth losing streak. A reading above 50 indicates expansion, while a reading below reflects contraction. According to the China Federation of Logistics and Purchasing (CFLP), most subindices rose in September. The sub-index for new orders was 50.1 per cent, up by 3.2 percentage points from the August figure, indicating a rise in orders and demand recovery in the logistics market, official Chinese media reported. In September, the sub-index for employees increased by 1.4 percentage points to near 50 per cent, indicating that the employment situation in the sector was stable as well, CFLP added.
Source: Fibre2 Fashion
Global Organic Textile Standard (GOTS) has started the second public consultation period for its Version 7.0 revision, which will be ending on 31 October. The revised draft has incorporated input from contributors along with members of the Standard Revision Committee (SRC), a group of experts convened by GOTS to oversee the revision. GOTS is stringent voluntary global standard for the entire post-harvest processing (including spinning, knitting, weaving, dyeing and manufacturing) of apparel and home textiles made with certified organic fibres (such as organic cotton and organic wool), and includes both environmental and social criteria. The first comment period, which ended in April, elicited 335 individual comments. Each comment was recorded and deliberated, and all changes have been logged and made available to the public on the GOTS website. During this second comment period, new topics will not be considered, but comments and input on decisions taken during the first comment period are encouraged. The responses received in this comment period will be deliberated by the SRC through December 2022, and a final edition of GOTS Version 7.0 will be released in March 2023. For certified entities, full implementation of Version 7.0 begins in March 2024. Rahul Bhajekar, MD, GOTS, said “Each revision of the GOTS Standard builds upon the previous one, becoming stronger with each version. We cannot achieve that kind of progress on our own. Public participation is an essential part of the transparency and inclusion of the revision process, and we hope that all interested parties take the time to contribute during this critical second round of comments.”
Source: Apparel Resources
Dhaka Chamber of Commerce and Industry (DCCI) president Rizwan Rahman recently met Turkish trade minister Mehmut Mus in Ankara and requested him to relax tariffs on readymade garment (RMG) items to boost Bangladesh's exports. As the $900- million bilateral trade between both sides is not satisfactory, Turkish investors should invest in Bangladesh, Rahman told Mus. Turkey imposes an extra 17 per cent tariff for RMG products from Bangladesh. Progress in public-private and business-to-business partnership between the two countries remains low as well, he said. The bilateral trade can be enhanced to over $2 billion through better trade diversification, Rahman said. Turkish investors can consider Bangladesh's 100 economic zones and 28 high-tech parks as their preferred investment destination, he said. He also requested the minister to extend the current duty-free and quota-free tariff line facility to Bangladesh which is now 79.9 percent for trade growth.
Source: Fibre 2 Fashion
A comprehensive visit of the Freudenberg Chemical Specialities plant in Mysore, Karnataka in early August 2022 revealed the company’s futuristic, safe and innovative solutions for multiple industries with a keen focus on textile as one of their biggest revenue earner domains in India. An insightful interaction with Hitendra Bhargava, CEO and Regional Management Board Member Asia Pacific, Klüber Lubrication and Kanakaraju Thangavel, Chief Technical Officer, Freudenberg Chemical Specialities revealed to Sarada Vishnubhatla the latest market trends, emphasis on safety regulations, and focus on futuristic solutions in the textile industry. A textile mill needs special lubricants and greases to ease the functioning of many different machine components. And Klüber Lubrication offers state-of-the-art products and solutions to the textile industries around the world. Hitendra Bhargava, CEO and Regional Management Board Member Asia Pacific, Klüber Lubrication offers an overview of the industry: “India is growing in the textile industry by leaps and bounds. The total monthly exports of the country is pegged at US $ 36 billion, and the share of the textile products is robust and growing. Interestingly, many global markets are witnessing a reduction in the number of spindles being used and even some of the spindle mills have been shut down. These businesses are shifting to India and other countries such as Vietnam, and Bangladesh.” Klüber Lubrication offers solutions that are designed to match individual component needs enabling optimal performance. As speciality lubricants, the brand covers the entire production process – right from the spinning, knitting, weaving, and finishing machines to the stenter frames. Klüber’s products and solutions are used in bearings, spinning turbines and pumps, open rollers, and spinnerets. Their solutions bestow long service life to needles, sinkers, slide rails and guide bars in the knitting machines with minimum maintenance need. For the weaving machines, Klüber has lubricants that can be used in minimum quantity to give longer gaps between maintenance of gears, gripper looms and chains. When it comes to finishing machines, these lubricants are resistant to water, steam, acidic and alkaline solutions for rolling bearings, compensators and rollers. They leave smaller residues in the stenter frames due to their high separating effect on the conveyor chains, adjustment spindles, needle bars and clips. As per Hitendra, the Indian textile industry is on the brink of witnessing a boom in business in the next couple of years. He shares: “Klüber Lubrication commands a robust market share in the spinning segment, owing to our strong strategic partner, Voltas Textile. Their reach extends to almost all the spinning customers. Klüber is the market leader in India when it comes to spinning lubricants. And we would like to leverage on that and get more OEM approvals to increase our market share because we have the right channel and the right group to market.” Kanakaraju Thangavel, Chief Technical Officer, Freudenberg Chemical Specialities shares: “There are different sets of oils for all these domains. Some of our knitting oils need to go through something called the scourability. Traditionally, if there is an oil stain that is incurred during the knitting process, the procedure is to apply water or a surfactant to the area which is later dried. We have high scourability standards which allows for the stain to be removed easily.” Making Sustainable Products – For the World Klüber Lubrication is now working on sustainable products with base oils extracted from crude or further processed from it. Instead of the products that are refined from the traditional petroleum-based products, the company is testing using vegetables and other similar sustainable materials as sources. The idea is to reduce dependence on fossil fuels. And that is true for the products that Klüber Lubrication has already launched and those still under development. Besides working on the sustainable products, the company wishes to become a market leader from being a niche player in India and Bangladesh markets, primarily, by taking success stories from Turkish and Chinese knitting markets where they are doing well. When it comes to the weaving segment, the company already has approvals under its belt from big OEMs, such as Itema, where they use Klüber oil in their manufacturing. Hence, the company is looking at surging ahead in the aftermarket in the weaving segment. Kanakaraju explains: “We are working on sustainable products for both knitting and spinning segments. Knitting is much more complex when compared to the spinning industry.. For example, the oil formulation that is made for the knitting needle must be precise otherwise the needle will get corroded fast or the lubrication effect will not be up to the expectations. In either case, the needle will wear out fast. Our oil for knitting needles is both anti-corrosive and gives higher longevity.” Hitendra is clear that: “We are looking at increasing our market share in the second fill. And we expect this to be a major growth driver for us in the future.” Performance-oriented Products Klüber Lubrication offers three different categories of products – Klüber oil, Silvertex, and a medium oil. All these are designed to deliver the cost versus performance parameter. Kanakaraju says: “Klüber oil is a premium grade oil and it has the approval from major OEMs. In fact, during the manufacture of their machines, the OEMs list out Klüber in their lubrication chart.” Klüber boasts of two types of global R&D centers, namely, lead development center and complementary development center. The former works on the major technological advances where the basic product research and development is undertaken. The latter develops products as per the market need. Kanakaraju explains: “India is the lead development center for us in the open gear applications which are mainly for cement, sugar and similar industries where the gears are visible. This application mainly deals with loss lubrication where the lubricant is periodically injected. Our complementary development center caters to textile and other industries. Our India center creates products for the world. Similarly, we have customized global products of ours to suit the market requirements here.” India-Centric Solutions Klüber offers customized products and solutions to their textile customers in India. It is a well-known fact that the textile industry – whether in India or elsewhere – is forever looking at increasing the profitability while reducing costs and utilization of resources. Speaking about the market share in the textile domain that Klüber enjoys, Hitendra says: “In the textile industry, we are the market leaders in spinning with almost 50% market share. In the knitting, weaving and finishing segments, we a much smaller market share and we have aggressive plans to grow fast in them.” Kanakaraju quotes an example: “We have developed products that can be washed with plain water. Globally, these products are highly appreciated in the textile industry because these solutions eliminate huge effluent treatment costs and hence, they are welcomed.” It is the company’s long-term strategy to make sustainable products and solutions that are customizable, even if there is an in-built challenge which is the invariable increase in the cost. In the last quarter of 2020, Klüber Lubrication as a whole witnessed an exceptional growth where they matched the numbers in the previous year. In 2021, the company was much ahead of competition in terms of the recovery from the COVID pandemic impact while recording unprecedented growth compared to 2020. In the current year, Klüber is marching further ahead than they did in 2021 which means, as per Hitendra, the highest ever growth figures achieved in Klüber India to date, while continuing to grow over and above that in double digits. Winning Culture India is a cost conscious but significant market in textiles and Klüber Lubrication has painstakingly worked towards changing the mindset to look at quality and performance of the lubricants. Hitendra shares insights: “Our spinning and knitting oils are bringing a change in the perception of the market by emphasizing on the high value for money and by delivering performance which outvotes the cost of the lubricants. Also, the fact is that spinning mills are known to be the one of the highest consumers of power, hence our energyefficient products especially are designed to help them with that.” But this comes with a unique challenge which is – how to measure the power reduction successfully? And the answer may just be around the corner, what with Klüber conducting its thorough research and working on success studies to show to the world. Advantage – Klüber Lubrication Customers are aware of the tremendous value that Klüber as a lubricant brand offers them. When the machine downtime is minimum or even eliminated completely, the worth of it is measured in terms of how much the resources have been saved. Hitendra shares: “Today there are many spinning mills which are booked ahead and, in that context, they wish for continuous availability of their machines. Since, our lubricants give them the maximum performance, cost becomes secondary. Our products prove that the value addition that we offer is worth the investment on their part.” Clearly, the USP of Klüber Lubrication is that their sustainable products offer longevity with superlative performance minus the downtime.
Source: The Financial Express
