In July, the Reserve Bank of India (RBI) had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency The Directorate General of Foreign Trade (DGFT) may soon notify norms for permitting exporters to avail incentives under the foreign trade policy, even on realisation in rupee, an official said. The DGFT, under the commerce ministry, has already allowed invoicing, payment and settlement of exports and imports in Indian rupee, a move aimed at facilitating trade in the domestic currency. In July, the Reserve Bank ofIndia (RBI) had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency. "To permit exporters avail incentives under the foreign trade policy, norms will have to be notified for that," the official said. The DGFT has stated that settlement of trade transactions in INR may also take place through special rupee vostro accounts opened by authorised dealer banks in India.
Source: Economic Times
Experts say industry has a long way to go, should adopt technology, stop imports. The textile sector attracted Rs 4,292 crore in investments from the state’s players, with Manjushree Garments committing Rs 340 crore and Shahi Exports Rs 150 crore, at the Invest Karnataka-2022 Global Investors Meet (GIM). The sector is expected to generate 36,457 jobs. Textiles Minister Shankar Patil Munenakoppa attributed the achievement to the government’s textile and apparel policy for 2019-2024, which helped beat the Covid-19 pandemic situation. Department secretary Pankaj Kumar Pandey said initiatives such as 5 per cent interest subsidy to mega industries and MSMEs, incentives and concessions up to 100 per cent, enhancement of wage subsidy from Rs 1,500 to Rs 3,000 in Kalyana Karnataka region, and Rs 1,000 to Rs 2,000 in the rest of the state, contributed to its success. Four textile parks on the PPP model have been planned in places beyond Bengaluru, for which tenders will be called shortly. The central government is expected to grant one of seven mega parks to Karnataka, that may come up either at Kalaburagi or Vijayapura, Pandey said. But experts on the panel such as T Ramalingam, while appreciating the government for its policy, observed that the industry has a long way to go as all machinery, including sewing and knitting machines, are imported. “We are missing the bus on technological improvement, and are not using artificial intelligence to develop the textile sector. None of the textile machines, except the spinning ones from Coimbatore, are made in India, and we are paying huge amounts to import them. Unfortunately, all raw materials, especially dyes, are from China,” he remarked. “We are only talking about textiles when major exporters from Europe are setting up their backend offices in Bengaluru.”Naseer Humayun, another expert, observed that it is only the garment industry that gives back 30 per cent of its revenue to the communities, and hoped the state takes a big leap in becoming the garment capital of the country. Koushaldendra Narayan of Silver Spark presented environmentally and economically sustainable practices adopted by the industry.
Source:New Indian Express
"As we have said earlier, the matter of negotiations is best left to the trade ministers and their teams of officials. I cannot comment on the status. I certainly do not have any target date," External Affairs Ministry Spokesperson Arindam Bagchi said. "As we have said earlier, the matter of negotiations is best left to the trade ministers and their teams of officials. I cannot comment on the status. I certainly do not have any target date," External Affairs Ministry Spokesperson Arindam Bagchi said. India on Thursday said it is working "sincerely" with the UK for finalisation of the proposed free trade agreement, days after Prime Minister Narendra Modi and his British counterpart Rishi Sunak agreed on the "early conclusion" of the deal. "Both sides are working sincerely on the free trade agreement," External Affairs Ministry Spokesperson Arindam Bagchi said. His comments came when asked about the FTA during a media briefing. "As we have said earlier, the matter of negotiations is best left to the trade ministers and their teams of officials. I cannot comment on the status. I certainly do not have any target date," Bagchi said The issue of the FTA figured in the first telephonic conversation between the two prime ministers on October 27. In a tweet on his talks with Sunak, Modi said: "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. In April, the two sides had set a Diwali deadline for concluding the FTA but the deal could not be finalised in view of differences over certain issues. It is learnt that External Affairs Minister S Jaishankar and British Foreign Secretary James Cleverly took stock of the ongoing negotiations for the FTA during their talks here last week. Cleverly visited India to attend a United Nations meet on counter-terrorism. To a question on the US not having a full time ambassador to India, Bagchi said "we would hope the position would be filled soon". The Biden administration had in July 2021 announced the nomination of Los Angeles Mayor Eric Garcetti as the next US Ambassador to India. However, Garcetti's nomination is yet to receive confirmation from the US Senate.
Source: Economic Times
Investments in these categories will be provided 3 mutually exclusive options including Investment Promotion Subsidy - Capital Subsidy, Net SGST reimbursement The Uttar Pradesh government on Thursday launched its Industrial Investment and Employment Promotion Policy 2022 to enable the state's aim of becoming a one trilliondollar economy. With the UP Global Investors Summit 2023 at sight, the state Cabinet on Thursday passed the new umbrella policy of the State, an official spokesperson said here. The policy aims at creating a progressive, innovative, and competitive industrial ecosystem generating employment in the state while mobilising investments from across the world, Industry Minister, Nand Gopal 'Nandi' said. "Ensuring a continuity of the successes of Industrial Investment and Employment Promotion Policy 2017, the new umbrella industrial policy of the State reflects the voice of industries of the State & the country," he said. With India at a bright spot in the global economy today, the policy is an excellent offering for foreign as well domestic investors. It complements as well as supplements various schemes and policies of the Centre to offer one of the most attractive and optimal incentive packages for investments in the country," an official statement issued here said. Offering a unique flexibility to the investors by extending a one-time choice of choosing an option amongst three 'mutually-exclusive' options, the policy categorises investments into four major categories Large, Mega, Super Mega and Ultra Mega. Investments in these categories will be provided 3 mutually exclusive options including Investment Promotion Subsidy - Capital Subsidy, Net SGST reimbursement. The Capital Subsidy option is graded by regions of the state the highest in Bundelkhand and Poorvanchal followed by Madhyanchal & Paschimanchal (except Gautam Buddh Nagar & Ghaziabad districts) and Gautam Buddh Nagar and Ghaziabad districts, it said. Invest UP has been appointed as nodal agency for sanction and disbursement of incentives under the policy. A Policy Implementation Unit (PIU) will also be set-up under Invest UP to ensure effective implementation of the policy and speedy processing of applications. The policy has innovative option-based incentive models and land facilitation mechanisms, it said, adding that with a roadmap for circular economy and incentives for Research and Development and innovation, the new umbrella Industrial Policy of the state seeks balanced, sustainable, and inclusive economic development, it added.
Source: Business Standard
Over 65 per cent of top officials blame insufficient demand and raw material price mismatch for the lower capacity utilisation in Indian textile mills in October, as per a recent survey. Only 26.92 per cent units operated at a capacity of over 95 per cent. About 61 per cent of the respondents do not expect export demand to revive in the next 3 months. Raw material shortage and labour unavailability were also cited as the reasons for reduced capacity utilisation, according to the survey of chief executives and top officials of textile companies conducted by the Confederation of Indian Textile Industries (CITI) to take stock of the performance of the industry in October. Close to 23.08 per cent survey respondents operated their mills at less than 50 per cent capacity, The survey found that 19.23 per cent units ran at a capacity of 50-69 per cent, 23.08 per cent at 70-84 per cent and 7.69 per cent at 85-95 per cent. Additionally, more than 30 per cent CEOs had stocks of finished goods of 1-2 months’ production. While 11.54 per cent responded on stock piling of more than 2 months. More than half of the CEOs had affirmative reply on increase in stocks during the last month. Over 65 per cent respondents had stocks of raw material in October. However, 58 per cent CEOs said that the prices of raw materials came down by 10 per cent in the last two weeks. Close to 23 per cent CEOs confirmed the trend of order cancellations. Over 34 per cent people said they were not getting clear answers from the buyers, or the orders were postponed. Only 42 per cent respondents said that no orders were cancelled by their buyers. Eighty per cent people felt that demand remained weak, while only 10 per cent of the exporters are satisfied with the current demand. The survey indicated that uncertainty was the key reason for order cancellations and postponements.
Source: Fibre 2 Fashion
Apparel Industry Sustainability Action (AISA) 2022-23 has been launched by India’s Apparel Export Promotion Council (AEPC) with an aim to encourage textile companies which are working with sustainability. The country’s textile & apparel industry can reduce its footprint on environment and can bring economic viability through sustainability of its processes. The initiative aims at evaluating the existing status of Indian garment industry, encourage wider penetration of these measures amongst the MSMEs, hand holding these units with demonstrations and solutions, enhance the brand visibility of sustainable companies on global platform, and brainstorm necessary policy focus towards wider and smooth adoption of sustainability measures amongst Indian garment units. AEPC will encourage sustainable companies which will be showcased on the dedicated sustainability social media platform for wide publicity and will finally culminate as Sustainability Awards. The Award-winning Indian companies will finally get an opportunity to showcase their collection in specially curated ‘Sustainability Corner’ of India Pavilion in 2023 Pure London, UK and Who’s Next, Paris, the world’s biggest fashion hub. The textile industry is one of the major polluting industries, accounting for 4 per cent of greenhouse gas emissions and 20 per cent of industrial water pollution globally. It is estimated that about 50 per cent of the fabric is wasted during the manufacturing process and the fast fashion trends leads to 81 per cent of all manufactured garments getting dumped as landfills either due to short life cycle after consumer use or due to excess stock. “This problem not only concerns the environment but also represents missed economic opportunities. Experts advocate that sustainability and circularity can not only reduce footprint on our environment but also can bring economic viability,” AEPC said. Narendra Goenka, chairman, AEPC, said that the textile companies have to comply with the provisions of sustainability to pursue their business.
Source: Fibre 2 Fashion
The Philippines is interested in resuming negotiations for a free trade agreement (FTA) with the European Union (EU), according to the former’s department of trade and industry (DTI), which recently said trade secretary Alfredo Pascual spoke at the European Parliament last month on the monitoring process for the renewal of the generalised scheme of preferences plus (GSP+). Pascual delivered a strong message of commitment to the EU-Philippine partnership in trade and investment before the EU Parliament committee on international trade, DTI said. GSP+ is an incentive arrangement that grants the Philippines zero tariffs on 6,274 products or 66 per cent of all EU tariff lines. “The Philippines is an attractive investment destination given its solid macroeconomic fundamentals, enabling policy environment, and young and trainable workforce. With a stable and predictable political regime, our country is well-positioned in the Indo-Pacific to become a regional hub for manufacturing, innovation, training, and education,” Pascual was quoted as saying by Philippine media reports. DTI also emphasised that the GSP+ has benefited EU companies as well, as they invest in manufacturing facilities in the Philippines to take advantage of the country’s extensive and expanding domestic market.
Source: Fibre2 Fashion
Bangladesh and Singapore are expected to start negotiations soon to ink a free trade agreement (FTA) within this year, aiming to boost investment and trade between the countries. As part of the move, Singapore's trade minister is likely to visit Bangladesh on November 15-17 next. Commerce minister of Bangladesh and the visiting Singaporean minister will sign a memorandum of cooperation (MoC) in this connection, officials said. The two Asian nations have already formed a high-powered working group, according to an official of the commerce ministry. Singapore is one of the important trade partners of Bangladesh - the developed country is important for technology transfer and product trade and as a supply chain hub, the senior official said. "We will start necessary negotiations soon with an eye to signing an FTA between Bangladesh and Singapore," he mentioned. However, the FTA deal is a bit complicated, said the official, adding that some issues, including revenue losses, are involved with FTAs as all products of both the countries enjoy duty-free facilities under FTAs. Bangladesh export to Singapore was US$127.11 million in the last fiscal year of 2021-22. Currently, the principal export products of Bangladesh to Singapore are knitwear, woven garments, agricultural products, engineering products, home textile, etc. Singaporean firms have invested more than $8.0 billion in the country since 2020. There are 5.6 million people in Singapore. It is a key trade, transport and financial hub in Asia.
Source: The Financial Express
The free trade pact between South Korea and Israel will take effect next month, Seoul's trade ministry said Thursday. The two nations signed a free trade agreement (FTA) in May last year after they struck the deal in 2019. South Korea's National Assembly ratified the deal in September. The pact will come into force on Dec. 1 to make South Korea the first Asian country to have a free trade deal with the Middle Eastern nation, according to the Ministry of Trade, Industry and Energy. The FTA is expected to boost their trade of such advanced goods as semiconductors. South Korea is also expected to see its exports of cars, auto parts, textiles and cosmetics grow under the agreement, the ministry said. The Seoul government held a briefing session Thursday regarding the trade pact, which brought together Israel's Ambassador to Seoul Akiva Tor, officials from related ministries and domestic companies interested in making inroads into the Israeli market. "The FTA is expected to create new chances of growth for the countries and businesses amid heightened global uncertainties. In addition to greater market access, expanded technology cooperation is also expected to allow the two countries to secure a competitive edge in the global market," ministry official Kim Jeong-hoe said.
Source: Yonhap News
In its 30th year of dedication to safer textiles and leather, OEKO-TEX has created a new brand identity. The global certifier of textile and leather products and production worked with branding agency Schwitzke ID to build the clear and unified OEKO-TEX World. OEKO-TEX aims to create trust within the textile and leather industry and for their customers. The new brand identity will not change that. "Our values remain," said OEKO-TEX general secretary Georg Dieners. "In fact, they inspired our brand refresh." Based on scientific principles, OEKO-TEX has been promoting transparency in the textile and leather industry for three decades. Transparency is essential for enabling companies and consumers to make responsible decisions. “The new branding reflects the active, solution-oriented and positive approach. With our independent test institutes, we certify to clear, globally uniform criteria, which we communicate openly," said Inga Bleyer, global head of marketing. "Our new look is clear, consistent and transparent." The most visible change is the new OEKO-TEX logo, based on a geometric square and an organic circle, which reflect the scientific approach of OEKO-TEX and the nature it aims to protect. The logo typo is supported by a stylised, organic form reminiscent of natural structures, such as leaves, drops or textile loops. The reduced colour palette highlights the umbrella brand with a new OEKO-TEX Green plus black and white. A related colour palette supplements communication about OEKO-TEX products. The product logos are subordinate to the umbrella brand, creating a unified hierarchy. This will make communication easier for OEKO-TEX-certified companies and foster end consumer recognition. Parallel to the rebranding, OEKO-TEX has launched a new Responsible Business tool and certification. The OEKO-TEX Responsible Business tool and the certification will support the textile and leather industry in addressing challenges. Participating brands, retailers and traders can choose between a self-assessment of their due diligence status and an additional certification to validate the assessment results. The certification can be used in public communication and reporting.
Source: Fibre2 Fashion
The fashion retail sector cannot return to its environmentally damaging pre-Covid processes and unsustainable levels of mass production, a new report has warned, with innovation now more important than ever. Market Intelligence platform Edited, which reports on retail sustainability trends, warns that while the fashion industry grapples with rising inflation and a looming recession, sustainable initiatives can’t afford to fall by the wayside, especially with climate shifts accelerating and customers becoming more vigilant about greenwashing. “It’s clear that the businesses poised to thrive are those that are doubling down on innovation designed to minimise environmental impact,” the report says. With several elements falling under the umbrella of sustainability, the report suggests that retailers need to take a “stripped-back approach” and focus on improvement across the main areas bearing the most significant brunt on the environment, namely, material extraction, production and transportation and consumption and end of lifecycle. Edited found that 37% of products described as ‘sustainable’ contain some level of recycled polyester. Despite overproduction levels and textile waste, most recycled polyester in the market comes from polyethylene terephthalate (PET) bottles, not recycled garments. “These can’t be recycled at scale, underscoring the need for new solutions with less reliance on plastics and strains on natural resources,” Edited says. Retailers are diversifying their assortments with other natural alternatives to neutralise inflated cotton prices. Hemp has seen an upswing of 15% year-on-year, while the use of bamboo in material compositions has grown 5% year-on-year. Leather has experienced a plant-based overhaul, driven by retailers such as Coperni, Stella McCartney and Ganni investing in animal-free options like grape, mushroom and apple leather to minimise their footprint. The market hasn’t widely adopted bio-based leathers despite these investments – products described as vegan are still dominated by synthetics, further adding to plastic pollution. Material extraction bears a significant impact, Edited warns, whether natural or synthetic, including pollution, deforestation and extreme water consumption. The total number of in-stock non-organic jeans tracked by Edited is equivalent to 28,016,711 people’s drinking water for a year. The report offers suggestions on how brands can act:
Production and transportation in the supply chain are also highlighted as an area for improvement in the report. Factory workers and nearby communities often face exploitation and are subjected to poor working conditions and illness, Edited explains. Additionally, wet processing is one of the most polluting and energy-intensive aspects of the industry and shipping accounts for more than 80% of trade and at least 2.5% of the world’s CO2 emissions. Suggestions on how to act, include:
Suggestions on how to act, include:
Post-production, the transportation, washing and discarding of garments is also detrimental to the planet, Edited warns. The US throws away 2,150 pieces of clothing every second, mostly resulting in methane-rich landfills. How businesses can act:
Source: Just Style
