Major growth of textiles will come from Man-Made Fibre industry, said Shri Piyush Goyal, Union Minister of Textiles, Consumer Affairs, Food & Public Distribution and Commerce & Industry while interacting with industry representatives on 27th October. The industry representatives included producers of PTA, MEG, Fibre, Yarn, Fabric and Garments. The Hon’ble Minister called upon the industry representatives and said that we should aspire to reach a stage where the entire demand is fulfilled by domestic supply thus making the industry Atma Nirbhar. This will secure the raw material availability to lakhs of weavers involved in the polyester value chain, thereby leading to enhanced production of finished goods, enabling realization of the export targets. He suggested that industry should understand each other and work in synergy to amicably resolve the issues among the producers and users of the polyester in the entire value chain. The industry representatives responded that they are very much hopeful of achieving the export of 100 billion USD in the next 5 to 6 years. The industry representatives said the expansion of production capacity of key raw materials for manufacturing of Polyester viz. Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) is essential for increased production of downstream industry. It was informed that additional capacities of PTA are being set up and lakhs of looms are also being installed by the downstream industry which is still fragmented.
Source: India Shipping News
Goyal said foreign trade was going to truly help in achieving the USD 30 trillion ambitious target Union Minister for Commerce and Industry Piyush Goyal said here on Friday that foreign trade would become a truly defining feature that would help India become a USD 30 trillion economy in the Amrit Kaal. "We have reached that inflection point, we are at the cusp, where we are going to take off. If we have the ambition to be at least ten times in the next 25 years...we are looking to cross the USD 30 trillion economy with a per capita GDP of 15,000 dollar," Goyal said. Speaking as the guest of honour after inaugurating the third campus of the Indian Institute of Foreign Trade-Kakinada, along with Union Finance Minister Nirmala Sitharaman, Goyal noted that foreign trade would become a truly defining feature in the years to come "as we work in the Amrit Kaal in the next 25 years and progress towards a developed India." "Amrit Kaal, leading to the 100 years of Indian Independence, will determine the future of our children and generations to come. You are the main stakeholders in this journey," he told the IIFT students. Goyal said foreign trade was going to truly help in achieving the USD 30 trillion ambitious target. "This is the path that we are going to achieve. It's very much achievable and doable," he remarked. The Commerce Minister pointed out that the Indian economy grew 11.8 times in dollar terms in the last 30 years to USD 3.5 trillion today, from less than USD 300 billion. Goyal said India was a bright spot in the world today, where other countries were in recession, where inflation was five times high than was usually seen in some countries. He said the world was seeking to engage with India because it's a growing economy. Political stability, decisive leadership and deft handling of the economy have made the world look up to India. "As we go into a developed economy status, our imports and exports are going to increase manifold. We have to have seamless foreign trade, movement of goods and services," he noted. Goyal said the world wanted to do "more and more business with us." "The world wants Free Trade Agreements with us. World wants to expand trading relationship and friendship with India, looking at the potential in terms of a large market and the potential we have to help their economies survive and grow," the Commerce Minister said. Observing that the youths have a huge burden, of taking India to the status of a developed country, on their shoulders, Goyal said they have the work cut out. "Take upon you the responsibility for inclusive growth and all regions of the country. Let's make India once again the Viswaguru, the world super power," he exhorted the IIFT wards.
Source: Business Standard
India’s Prime Minister Narendra Modi spoke to newly appointed UK Prime Minister Rishi Sunak, and both have agreed on taking forward the negotiations for a comprehensive UK-India free trade agreement (FTA). Sunak expressed his gratitude after PM Modi congratulated him for taking on his new role as UK’s prime minister. During his talk with Sunak, Modi reiterated India’s commitment towards its Comprehensive Strategic Partnership with the UK. “Glad to speak to @RishiSunak today. Congratulated him on assuming charge as UK PM. We will work together to further strengthen our Comprehensive Strategic Partnership. We also agreed on the importance of early conclusion of a comprehensive and balanced FTA,” Modi said in a Twitter update. Sunak was also optimistic about what the partnership between the two countries could achieve in the coming years. “Thank you Prime Minister @NarendraModi for your kind words as I get started in my new role. The UK and India share so much. I’m excited about what our two great democracies can achieve as we deepen our security, defence and economic partnership in the months & years ahead,” Sunak posted on Twitter after his talk with Modi. Sunak had earlier told an Indian English-language daily that he was “strongly committed” to the UK-India FTA to create jobs in both nations and for India to liberalise its consumer financial services industry. Indian textile exporters can benefit from the FTA as tariff and non-tariff barriers may be eased under the deal. Currently, Bangladesh, Sri Lanka, Pakistan, and some other countries get preferential treatment while exporting to the UK. Indian exporters feel that they are not getting equal treatment in the developed economies including the UK. It is expected that the FTA will provide Indian exporters with some exemptions enabling them to face stiff international competition. According to Fibre2Fashion’s market insight tool TexPro, India holds the fifth position among top apparel suppliers to the UK. During last year, India exported apparel worth $1.094 billion, comprising 5.24 per cent of the UK’s total imports of $20.889 billion. China (21.57 per cent), Bangladesh (14.45 per cent), Turkiye (8.23 per cent), and Italy (8.12 per cent) were the top four apparel suppliers to the UK. While the UK is eyeing India’s large market to ensure the former’s economic growth, India wants to increase its exports of labour-intensive products like textile, handicraft, and footwear. Sunak assumed office as UK’s prime minister on October 25, 2022, becoming the fifth Conservative party leader to take up the role in the last six years. He is also the first British prime minister of Indian origin.
Source: Fibre 2 Fashion
Proposal includes expansion of PLI and strengthening the cluster development model A cell in the department for promotion of industry and internal trade (DPIIT) will “ideate, implement and monitor" the mammoth task of India’s industrial development strategy if a proposal by the ministry of commerce and industry is accepted by the Union cabinet. The proposal, aiming to give a renewed push to manufacturing activity and private investment, is part of a comprehensive industrial policy statement being prepared by the department for promotion of industry and internal trade, according to people in the know. It aims to provide a broad framework to address manufacturing-related bottlenecks and facilitate investments while leveraging the realignment of global supply chains due to geopolitical factors. It also includes expansion of production-linked incentive (PLI) schemes, strengthening the cluster development model, incentivizing public procurement and promoting research and development funding on a “mission mode". The statement, which may be placed before the Cabinet for approval. In order to promote India as an attractive investment destination, the government plans to create global investment desks and make existing systems, such as the national single- window system, more comprehensive and advanced. It is also working to reform outmoded laws and to ensure seamless enforcement of contracts and end-to-end digitization of all procedures. The policy statement covers six core objectives, including promoting India as an attractive investment destination by ensuring policy stability, transparency and ease of entry, and strengthening intellectual property rights awareness and promoting IP dialogues with industry, small businesses and academia. It is also expected to ensure a better land availability process, creation of a logistics ecosystem, and sustained increase in labour productivity. The two-pronged strategy comprises scaling of production capabilities and adoption of key enablers promoting innovation, quality, and sustainability. The government has been trying to increase the share of manufacturing in India’s GDP to 25% from the current 17% and move up the global value chain. The move comes at a time when private investment is yet to pick up pace amid monetary policy tightening. The government has so far announced PLI schemes for 14 sectors including automobile and auto components, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles and apparel, white goods and drones. Queries emailed to the ministry of commerce and industry remained unanswered till press time. Biswajit Dhar, professor, Jawaharlal Nehru University, said: “Yet another cell under the DPIIT may not prove useful. What is necessary is a high-powered body that can engage with the industry for improving ease of doing business. Further, trade unions must be involved to address the issues relating to labour productivity." India’s economy grew at a slower-pace than expected, at 13.5%, in the first quarter of the current fiscal year, with manufacturing activity expanding by a dismal 4.8%. The index for industrial production contracted for the first time in 18 months in August, led by a sharp decline in manufacturing and mining output. While gross fixed capital formation, a proxy for private investment, grew by 20.15% during the first quarter, its share in GDP came down to below 30% to 29.2%.
Source: Live Mint
According to the latest data, outstanding credit to MSMEs jumped 24% as of August from a year before to Rs 18.16 trillion, partly aided by the Rs 5-trillion government’s Emergency Credit Line Guarantee Scheme (ECLGS). The finance ministry has advised banks to support those micro, small and medium enterprises (MSME) that have adopted certain sustainability standards for manufacturing with a raft of incentives, including cheaper credit, at a time when interest rates are on the rise, official and banking sources told FE. The move is part of the government’s broader efforts to encourage MSMEs to become “responsible manufacturers” and improve credit flow to these units that account for a bulk of the country’s job creation. This policy also assumes significance in light of India’s current negotiations with key economies like the UK and the EU for modern free trade agreements (FTAs) that tend to link market access with sustainable manufacturing practices. MSMEs account for about 40% of the country’s exports, 6% of the manufacturing GDP and almost 25% of the services GDP. In a letter to financial institutions, the department of financial services (DFS) has asked them to put in place policies, approved by their boards, for extending incentives to ZEDcertified MSMEs. The ZED (zero defect, zero effect) certification is granted by the MSME ministry to those eligible units that comply with certain sustainability standards to not harm environment. The incentives that lenders are being advised to extend include concessional credit, lower loan processing fees and any other benefit that they deem appropriate. The lenders have also been asked to ensure complete integration of the ZED portal with their online portal where MSMEs can apply for loans. “The MSME ministry had requested the DFS to advise financial institutions to help promote ZED-certified businesses. So, the DFS has advised lenders to put in place board-approved policies in this regard,” one of the sources said. So far, only 531 MSMEs have obtained ZED certification, according to the data available on the MSME ministry website, and the government intends to encourage a wider pool of small businesses to adopt such standards. According to the latest data, outstanding credit to MSMEs jumped 24% as of August from a year before to Rs 18.16 trillion, partly aided by the Rs 5-trillion government’s Emergency Credit Line Guarantee Scheme (ECLGS). In recent years, MSMEs have been hit hard by a combination of factors, such as demonetisation, the roll-out of the goods and services tax regime and, more recently, the pandemic. The Covid outbreak, particularly, caused a large number of MSMEs to sink, according to several analysts. To soften the blow, the government came out with the ECLGS to facilitate guaranteed loans in the aftermath of the pandemic. In April, it approved a $808 million (Rs 6,062 crore) support to revitalise Covid-hit MSMEs through a programme backed by the World Bank. The government also announced the revamp of the extant Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to facilitate an additional credit of as much as Rs 2 trillion. More recently, finance minister Nirmala Sitharaman asked private companies to clear dues to MSME suppliers within 45 days to improve the cash flow of these small businesses.
Source: Financial Express
"We have made a lot of progress in the negotiations, and we continue to work for an agreement that works for both countries," James Cleverly said in a Times of India interview published Sunday. "We have been very, very explicit that our partnership with India is one that matters to us and one we want to enhance and develop," he was quoted as telling the paper during the two-day visit. There is "a lot of progress" in negotiations between India and the United Kingdom on a free trade deal, Britain's foreign minister said, even as the post-Brexit deal missed the key Diwali deadline. "We have made a lot of progress in the negotiations, and we continue to work for an agreement that works for both countries," James Cleverly said in a Times of India interview published Sunday. "We have been very, very explicit that our partnership with India is one that matters to us and one we want to enhance and develop," he was quoted as telling the paper during the two-day visit. India and its former colonial ruler have been for about 18 months negotiating the pact to boost trade and investments between the countries. The aim was to conclude the talks by Diwali, but no new deadline to conclude the talks has been set, people aware of the developments said. India's gains in lieu of likely duty cuts for British alcohol and automobiles, and visa flexibilities would be the focus areas. In exchange, India wants more work and study visas for its citizens in line with similar recent deals struck between Britain and Australia and New Zealand. The prime ministers of both nations are set to resume talks and agreed on the need for early conclusion. Political changes in the UK and British home secretary Suella Braverman's recent remarks on Indians being the largest group of people overstaying in the UK were seen to be major hurdles in concluding a deal, according to officials. Cleverly told the Times that he saw it "as a very positive thing that so many Indians want to come and study in the UK, that Indian businessmen want to do business in the UK. It's a cause for celebration." "Of course, it does mean that we must ensure our processes are right." However, Cleverly refused to be drawn on expectations that the appointment of Rishi Sunak, who is of Indian heritage, as prime minister could help boost ties. That said, it's lovely to see how much excitement and enthusiasm there is about the British PM here in India," he told the paper.
Source: Economic Times
Rachna Shah will be officially taking charge as Secretary, Ministry of Textiles on 1st November 2022 after superannuation of UP Singh, Secretary Textiles on 31st October 2022. An IAS officer of Kerala cadre and 1991 batch, Rachna is currently serving as Additional Secretary with the Department of Commerce. Born in Uttar Pradesh, she is a post-graduate in Business Economics from Delhi University. She has experience of working in Ministries like Science and Technology, Corporate Affairs etc. In a virtual meeting with Export Promotion Council (EPC), Union Textile, Commerce and Industry Minister Piyush Goyal introduced Rachna Shah to the EPCs. The Minister directed that Rachna Shah should visit the textile hubs in Surat, Noida, Tirupur-Coimbatore and others. In addition, applications proposed under PM Mitra around these hubs may also be visited for observation and recording response of the industry representatives.
Source: Apparel Resources
So far in 2022, the Indian currency has weakened 9.9 per cent against the US dollar The Reserve Bank of India’s (RBI’s) foreign exchange reserves declined $3.8 billion to $524.52 billion in the week ended October 21, the latest data showed. The current level of reserves is the lowest since July 24, 2020. The decline in reserves is largely on account of a drop in the RBI’s foreign currency assets, which fell $3.6 billion to $465.08 billion in the week ended October 21. According to analysts, the drop in reserves in the previous week was largely attributable to the RBI’s intervention in the currency market to support rupee. “It was the week in which the rupee touched a record low of 83.29 a dollar following weakness in the Asian currencies,” HDFC Securities research analyst Dilip Parmar said. In the week ended October 21, the rupee depreciated 0.4 per cent versus the US dollar. The US dollar index, which measures the US currency against six major currencies, strengthened 0.6 per cent over the same period. So far in 2022, the Indian currency has weakened 9.9 per cent against the US dollar. The RBI’s foreign exchange reserves have declined by more than $100 billion since Russia invaded Ukraine in late February. As on February 25, the reserves were at $631.53 billion. Last month, RBI Governor Shaktikanta Das had said 67 per cent of the fall in reserves so far in the current fiscal year was due to revaluation in the face of a stronger dollar. The latest RBI data showed that the central bank had net sold $4.2 billion in the foreign exchange market in August, following sales of $19 billion in July. The RBI had net sold $3.7 billion in the market in June. In April, the central bank had net bought $1.9 billion in the currency market, followed by purchases of $2.0 billion in May. The current level of reserves represents an import cover of close to nine months. The level of reserves in September 2021 accounted for almost 15 months of imports.
Source: Business Standard
Việt Nam and India may complete the goal of US$15 billion in two-way trade this year despite impacts from the COVID-19 pandemic and geostrategic competition in the region and in the world, according to Vietnamese Trade Counsellor in India Bùi Trung Thương. Thương noted that trade between the two countries reached $11.43 billion in the first nine months of this year, a year on year rise of over 16 per cent, with Việt Nam’s trade surplus of $6.13 billion, up 35 per cent. Bilateral co-operation in tourism and investment also grew with the resumption and launch of direct air routes, he said, adding that Adani Group has committed to pouring $10 billion in Việt Nam. The official underlined that Việt Nam and India can supplement each other in economic production. India is an important supplier of materials, while Việt Nam has high demand for materials in service of production and export. Currently, India is Việt Nam’s leading provider of aquatic, garment and textile, leather and pharmaceutical materials, he added. The 1.4-billion-strong Indian market has diverse demands with various market segments - a good condition for Vietnamese exporters. However, according to Thương, the presence of Vietnamese businesses in the market has remained modest, while the administrative and legal system of India has been complicated with the toughest trade defence measures, which has caused great difficulties for Việt Nam in approaching the market. As part of the efforts to support Vietnamese firms to penetrate the market more deeply, the Việt Nam Trade Office in India has organised online trade promotion activities, especially amid the COVID-19 pandemic, said the official. The office has also connected many Vietnamese firms with their Indian peers and helped deal with trade conflicts, while providing domestic businesses with trade defence cases initiated by the Indian side, he said. He said that as Việt Nam and India are celebrating the 50th anniversary of diplomatic relations this year, the office has co-ordinated with relevant agencies to organise 50 trade promotion activities, and sent businesses of both sides to international trade fairs in Việt Nam and India.
Source: EIN News
India’s recognition by the World Bank as one of the top improvers on Ease of Doing Business (EoDB) causes the world to feel sure about India’s relentless efforts for redefining the ways businesses operate in new times. Notwithstanding the issues facing the economies in the neighbourhood, India’s growth fundamentals are keeping South Asia on the world map as a region of progressive economic performance. India will assume the Presidency of the Group of Twenty (or G20) for one year from 01 December 2022 to 30 November 2023 and this is expected to be a turning point for further deepening India’s global footprints and reassuring its commitment for a world order with shared peace and prosperity. Under India’s Presidency, the deliberations including over 200 G20 meetings across the country, beginning December 2022 and G20 Leaders’ Summit at the level of Heads of State/Government in September 2021 at New Delhi will help in reorienting the international cooperation to meet with the existing as well as the emerging challenges in post-pandemic transition. As one of the fastest growing economies, India’s stake is undeniably high to reach unchartered territories in the next growth phase. The G20 Presidency for India is a watershed moment, with no parallel an intergovernmental forum like this of the major developed and developing economies, it offers an unprecedented opportunity for convergence with the nineteen highly significant countries in trade terms: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, USA) and the European Union (EU). The alignment of G20 cooperation in the economic realm will be the game changer as collectively, the G20 accounts for 85% of global GDP, 75% of international trade and two-thirds of the world population, making it the premier forum for international economic cooperation. India is currently part of the G20 Troika (current, previous and incoming G20 Presidencies) comprising Indonesia, Italy and India. During India’s imminent Presidency, India, Indonesia and Brazil would form the troika. This would be the first time when the troika would consist of three developing countries and emerging economies, providing them a greater voice at a very crucial juncture when the fundamentals are moving fast in reset mode. Structurally, the G20 is planned the way it will serve the causes, among others, of international cooperation at all major fronts: -Finance Track, with 8 work streams (Global Macroeconomic Policies, Infrastructure Financing, International Financial Architecture, Sustainable Finance, Financial Inclusion, Health Finance, International Taxation, Financial Sector Reforms) -Sherpa Track, with 12 work streams (Anti-corruption, Agriculture, Culture, Development, Digital Economy, Employment, Environment and Climate, Education, Energy Transition, Health, Trade and Investment, Tourism) -10 Engagement Groups of Private Sector/Civil Society/Independent Bodies (Business 20, Civil 20, Labour 20, Parliament 20, Science 20, Supreme Audit Institutions 20, Think 20, Urban 20, Women 20 and Youth 20). Another vital composition of the G20 Presidency will be continuation of its tradition inviting some Guest Countries and International Organisations to its G20 meetings and Summit. As the world’s largest democracy and a major world player in the economic and strategic domains, its unwavering commitment for democratic values and inclusive development has been always appreciated. As India is now going to get the G20 Presidency and will be giving a much needed fresh momentum at the global arena, the list of the Guest Countries with Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and UAE, as well as International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI) and Asian Development Bank (ADB) as Guest International Organisations is again something keeping the terms with underlined priorities for the greater common good. The G20 priorities are in the process of being firmed up and ongoing narratives revolve around inclusive, equitable and sustainable growth as such: Lifestyle For Environment (LiFE); women’s empowerment; digital public infrastructure and tech-enabled development in areas ranging from health, agriculture and education to commerce, skill-mapping, culture and tourism; climate financing; circular economy; global food security; energy security; green hydrogen; disaster risk reduction and resilience; developmental cooperation; fight against economic crime; and multilateral reforms. In the recent years, the future role of multilateral organisations has been much debated and it would be a year of bright possibilities when the World Bank, United Nations (UN), International Monetary Fund (IMF), World Health Organisation (WHO), World Trade Organisation (WTO), International Labour Organisation (ILO), Financial Stability Board (FSB) and Organisation for Economic Cooperation and Development (OECD) and Chairs of Regional Organisations African Union (AU), African Union Development Agency (AUDA-NEPAD) and Association of Southeast Asian Nations (ASEAN) will be participating in the G20—and thus enabling a new roadmap for the international development and cooperation. In the post-pandemic transition, the world is facing the global strategic-economic fluctuations and the path of recovery is asymmetric across the frontiers where India’s G20 Presidency is epoch-making and is being seen with great expectations from all quarters including industry. In the challenged world order where the nations should ideally be on finding the ways of economic rebounding, such a common pattern is still elusive and that calls for a greater degree of international cooperation and clear consensus. India as the leading democracy and economy has proved to be one of the zones of hope to the world with its successful handling of an unprecedented crisis that came with Covid-19 pandemic. India’s recognition by the World Bank as one of the top improvers on Ease of Doing Business (EoDB) causes the world to feel sure about India’s relentless efforts for redefining the ways businesses operate in new times. Notwithstanding the issues facing the economies in the neighbourhood, India’s growth fundamentals are keeping South Asia on the world map as a region of progressive economic performance. As a believer of peaceful coexistence Vasudhaiva Kutumbakam (the world is a family), India’s eminent position in South Asia and the world at large inspires the major economies of the world to have a collaborative approach. India’s G20 Presidency is well-timed and concerted efforts through the deliberations should go a long way in remarkably shaping the way the world is responding to the pressing challenges of our time. The time ahead should be used for reaching uncharted territories; industry should participate from the front in such a historic transforming phase.
Source: Financial Express
Textile Recycling Excellence (T-REX) is a new EU-funded project consisting of 12 players from across the entire recycling value chain that aims to create a circular system for post-consumer textile and fashion waste. The T-REX Project (Textile Recycling Excellence) is working with fashion manufacturing companies and brands, including sports brand Adidas and innovation programme Fashion for Good, to create a harmonised EU blueprint for closed-loop sorting, and recycling of household textile and fashion waste. The three-year project wants to transform end-of-use textiles, from waste, into the desired feedstock, and a commodity for new business models that can be adopted at scale given that the Fashion for Good and Circle Economy’s ‘Sorting for Circularity Europe’ October 2022 report suggests only 2% of post-consumer European textiles are currently being diverted to fibre-to-fibre recycling. Over a three-year period, the T-REX Project will collect and sort household textile waste and demonstrate the full recycling process of polyester, polyamide 6, and cellulosic materials from textile waste into new garments. At the same time, the project will demonstrate sustainable and economically feasible business models for each actor along the value chain, conduct lifecycle analysis of the circular process, integrate digital tools that streamline the process of closed-loop textile recycling, and produce circular design guidelines. The project hopes to provide an understanding and identify the infrastructure, technology and policy needed to encourage the growth of circular value chains in the textile and fashion industry. The partners will work towards developing a systematic approach to addressing the problem of textile waste, resource preservation and reduction of the environmental footprint of the fashion industry. The T-REX Project explains that creating a circular system for post-consumer textile waste currently faces many challenges, including a lack of standards for collecting and sorting textile waste across countries, inaccurate composition claims, uneven quality of materials, and a lack of reliable data across value chain stakeholders. It hopes to increase knowledge on the systemic change required to scale fibre-to-fibre recycling, adding to previous studies that include the Fashion for Good and Circle Economy’s ‘Sorting for Circularity Europe’ Report, which showed 74% of low value, post-consumer textiles are readily available for fibre-to-fibre recycling in six European countries. The T-REX Project believes this finding offers an immense opportunity to accelerate textile recycling, but still requires an integrated approach to deliver for scale. Earlier this year McKinsey & Co published a report that suggested almost three-quarters of textile waste could be recycled in Europe by 2030, creating fresh opportunities for the apparel sector.
The 12 consortium players aiding the the household fashion, textile waste
recycling project across the EU
• Finland’s Aalto University
• Sports brand Adidas
• Science start-up Arapaha
• Chemistry company BASF
• Recycling innovation company, CuRE Technology
• Sustainable fashion and innovation company, Fashion for Good
• Germany’s Friedrich-Alexander-University Erlangen-Nuremberg (FAU)
• Circularity materials company, Infinited Fiber Company
• Yarn, greige fabric company, Linz Textil
• Global sustainability consultancy, Quantis
• Filament yarns integrated producer and specialist, TWD Fibres
• Ecological transformation benchmark company Veolia
How the cross-industry players will work together during the project Veolia will lead the post-consumer textile waste collection, sorting, and division to work with the feedstock needs of the respective textile recycling technologies of Infinited Fiber Company, BASF, and CuRe. The recycled fibres will be converted to yarn by European manufacturers Linz Textil and TWD Fibres, from which Adidas will create demonstration products with end-of-life in mind. FAU will support the project with analytical expertise to maximise the conversion of multi-fibre textile waste into recycled fibre, and Aalto University will conduct citizens’ engagement activities to raise awareness of textile recycling practices and analyse social impact. Fashion for Good will lead industry communications, and conduct business viability and digital integration activities, supported by Quantis and Arapaha who will collect and analyse data from across the value chain for sustainability assessments and digital solution recommendations. The project ultimately aims to contribute to a paradigm shift through understanding and identifying the infrastructure, technology, and policy needed to encourage the growth of circular value chains. It will work towards developing a systemic approach to addressing the problem of textile waste, whilst also assessing how to empower citizens to actively engage and contribute towards building a holistic solution to one of fashion’s biggest sustainability challenges.
Source: Just-Style
The imports of clothing and accessories by Japan increased by 29.8 per cent year-onyear to 1,794,366 million yen during April-September 2022. The import was 3 per cent of total import of 60,590,442 million yen during the first six months of this year, according to the provisional trade statistics released by the Far Eastern country's ministry of finance. According to the latest data, the import of textile yarn and fabrics were valued at 647,725 million yen in April-September 2022, which was 30.8 per cent higher than the same period of last year. The import was 1.1 per cent of the total imports by Japan. Japan's export of textile yarn and fabrics was worth 389,659 million yen during the first half of fiscal 2022, with an increase of 17 per cent year-on-year. The export was 0.8 per cent of the total export of 49,577,804 million yen from Japan during the AprilSeptember 2022. Japan exported textile machinery valued at 145,877 million yen, which was 20.2 per cent higher than April-September 2021. It contributed 0.3 per cent to total export. During September 2022, Japan's imports of clothing and accessories increased by 40 per cent year-on-year to 401,740 million yen. Clothing imports accounted for 3.7 per cent of the country's total imports of 10,914,496 million yen during the month under review. The imports of textile yarn and fabrics were valued at 110,920 million yen in September 2022, which is 33.5 per cent higher than the same month of last year. Japan exported textile yarn and fabrics worth 64,808 million yen, an increase of 21.3 per cent year-on-year. The textile yarn and fabric exports accounted for 0.7 per cent of the total exports of 8,820,212 million yen from Japan during September 2022. Japan exported textile machinery worth 24,868 million yen, which was 28.8 per cent higher than August 2021.
Source: Fibre 2 Fashion
Sri Lanka’s smaller exporter of goods or services to Germany may find their relationships with German buyers and partners terminated after a new human rights law comes into effect from 2023 in a drift towards larger suppliers, officials said. The regulatory burden of complying with the requirement of the German Supply Chain Due Diligence Act (SCDDA) which will come into effect in January 2023 may prompt some German firms to reduce the number of suppliers leading to concentration of supply to a few overseas companies. Concentration A European Union wide law is also in the process of being enacted, which may have even tighter requirements. “Concentration of supply chain could be a challenge,” Andreas Nicolin, from the Eastern Europe and Asia-Pacific unit of Federal Ministry of Economic Affairs and Climate Action said. “The European Law under discussion will be much sharper.” German companies with over 3,000 employees will come under the law first. Companies in Germany will be required to ensure that their suppliers and partners in Sri Lanka comply with human rights, labour laws and environment. Some Sri Lanka manufactured exporters, which have links with global and German brands already comply with some of the principles enshrined in the law. In the apparel sector in particular organic and sustainable business practices have been applied for two decades or more. “Given Sri Lanka’s high levels of ethical practices and a history of audits etc it should not be too difficult for companies to abide by the law,” Yohan Lawrence, Secretary General of Sri Lanka’s Joint Apparel Association Forum said. “That said however the devil will be in the detail and it’s reasonable to expect that there will be a push from buyers for a replication of the requirements that they have fulfill in order to ensure that they have better visibility down the supply chain. “As with a lot of these new regulations the SME sector will be disproportionately affected as there’s likely to be a greater gap here particularly around the documentation needed – policies, risk analysis etc. “We need to ensure that we provide a mechanism to build skills in the SME sector around these areas so that they would be in a position to demonstrate their compliance as laid out by the new law. Failure to provide that support mechanism risks companies not placing orders with the SME sector. Global Trend Global Organic Textile Standard (GOTS) is one of several organizations, that support companies to comply and maintain required standards. It has already certified over 12,000 facilities in 79 countries and 835 companies in Germany. “GOTS supports companies with due diligence criteria along the entire supply chain involving, manufacturers and traders,” Juliane Ziegler, GOTS Representative in Germany, Austria and Switzerland, Global Standard gGmbH said. The company assesses material usage, waste, minimum wages, living wages, child labour, forced labour and treatment of migrant labour. Human rights were contained in the GOTS Social Criteria Ziegler said. “It is must that all levels of the supply chain has to be checked,” she said. Former Commissioner of Human Rights of the German government now Managing Director Löning Responsible Business and Human Rights said German companies will start conducting risk assessments on suppliers to check compliance. Each company will have to audit and have knowledge of their supply chain. The law will also apply to services including software and travel. Sri Lanka hotels, software firms with German partners to face human rights law) German importers and business partners may be forced to drop companies in Sri Lanka that do not treat workers well or do not take precautions to minimize their impact on the environment. However it is also an opportunity for companies that comply to maintain or expand their business, Löning said. One of the triggers for the law was the collapse of Rana Plaza in Bangladesh which left over 1,000 people dead and consumers started asking question from apparel brands in particular. After the disaster many global brands started their own standard which required supplies to audit and show compliance. “Each company that conforms to OECD guiding principles will be well prepared for the supply chain,” Safarik said. Tim Richter from the Helpdesk on Business & Human Rights, Agency for Business & Economic Development (support service of the Federal Government) which is advising German companies said more than 2,000 companies have consulted them on the upcoming law. In Sri Lanka apparel companies and also some food exporters, who already comply with their brand partners’ standards had already made progress, but companies that do not comply may face termination of their business relationships with German buyers.
Source: Economy Next
Cambodia’s gross domestic product (GDP) is anticipated to go up by 6.6 per cent in 2023, bolstered by external demands and the recovery of the domestic economy, as per the draft of the 2023 budget law approved at a recent plenary weekly cabinet meeting of the Cambodian government. The country’s economy in 2022 is projected to continue its growth at 5.4 per cent regardless of the effects of the Russia-Ukraine war crisis, according to the minister attached to the Prime Minister and chairman of royal government spokesperson unit Phay Siphan. “Thanks to external demands and the return to normal of domestic economy, the Cambodian economic growth in 2023 is projected to be at 6.6 percent,” said Siphan in a Facebook post. “Cambodia’s economic growth in 2023 will be supported by key economic sectors, including industry, services, and agriculture.”
Source: Fibre 2 Fashion
At a recent meeting of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) standing committee on import, its senior vice president Mostofa Azad Chowdhury Babu urged the government to introduce a goods and services tax (GST) instead of the value added tax (VAT) to help ease revenue collection and reduce evasion of tax. Importers of essential commodities and raw materials also demanded proper management at ports and an end to the harassment of customs and shipping agents. Such harassment costs additional time and money for traders, raising business and production costs, an FBCCI press release said citing the importers. Customs authority fines up to 300 per cent for unintentional mistakes in the harmonised system (HS) codes and shipping agents charge various other fees, which cost additional Tk10 crore per day, Bangla media quoted importers as telling the committee. Goods are often sent to different university labs to be examined, and this takes more than a month, causing interruption in the supply chain, businessmen rued.
Source: Fibre 2 Fashion
