Remarkably resilient: World Bank ups FY23 India growth forecast to 6.9%
UP eyes investment from Japan, Thailand, Singapore, Australia
Amritsar’s growing industrial development attracts NRI investment
Why India-Australia FTA is significant: Job growth, international precedence and more
Why World Bank revised India's GDP forecast upwards
Bringing sustainable dyeing technology to the textiles industry
Textile value chain in wait and watch mode for cotton yarn price to drop
Inditex launches detergent designed to reduce microfibre release
Tiruppur textile processing sector struggles with mixed waste salt
Trident Ltd. (India) Joins International Textile Manufacturers Federation (ITMF) As Corporate Member
INTER NATIONAL
Austria's Lenzing, Renewcell ink supply deal for circular fashion
FTA fails to boost China's home textiles, apparel exports to Mauritius
ESG and country’s textile industry
JADE Textile ready to expand investments in Egypt to $220 million: GM
Envoy Textiles finalises €10.80m loan deal with ADB
NATIONAL
The World Bank on Tuesday raised its gross domestic product (GDP) growth forecast for India for the current financial year (FY23) to 6.9 per cent from 6.5 per cent because of the economy’s relative resilience to external headwinds and the ‘strong outturn’ in the September quarter, it said. This comes after a spate of downgrades earlier by banks and multilateral institutions. The World Bank, too, had cut India’s FY23 GDP forecast to 6.5 per cent from 7.5 per cent in October. In fact, this was the first upgrade of India’s growth forecast by any multilateral agency in FY23. The World Bank figure is very close to the Reserve Bank of India’s projection of FY23 GDP growth of 7 per cent. “India’s economy has been remarkably resilient to the deteriorating external environment, and strong macroeconomic fundamentals have placed it in good stead compared to other emerging market economies,” Auguste Kouamé, World Bank’s country director for India, said in the agency’s latest India Development Update. However, he said, continued vigilance was required as adverse global developments persist. The reason for India’s insulation from global spillovers was its large domestic market, which was relatively less exposed to international trade flows. The report said India’s external position had also improved considerably over the past decade. Besides, policy reforms and prudent regulatory measures had also played a role in helping develop this resilience, it said. “A well-crafted and prudent policy response to global spillovers is helping India navigate global and domestic challenges,” said Dhruv Sharma, senior economist at the World Bank, and the lead author of the report. India’s GDP expanded 6.3 per cent in the September quarter, slower than the 8.4 per cent growth seen a year ago, as manufacturing output contracted and the base effect waned. However, it was better than analyst expectations, which was one of the reasons cited by the World Bank for its latest growth upgrade. It expected an inflation rate of 7.1 per cent in FY23 before moderating to 5.2 per cent in FY24. Sharma did warn that India would not be completely insulated from spillovers from the US, Europe, and China, and as a result the GDP growth forecast for FY24 was cut to 6.6 per cent from 7 per cent earlier. “A challenging external environment will affect India’s economic outlook through different channels... rapid monetary policy tightening in advanced economies has already resulted in large portfolio outflows and depreciation of the Indian rupee while high global commodity prices have led to a widening of the current account deficit,” the report stated. That the global situation remains precarious was again brought to the fore by a separate report released on Tuesday by ratings agency Fitch. In its latest Global Economic Outlook (GEO) report, Fitch said it now expects world GDP to grow 1.4 per cent in 2023, down from 1.7 per cent forecast earlier. However, it retained its FY23 GDP forecast for India at 7 per cent, though it cut the growth projection for the next two years. It expects lower growth in India at 6.2 per cent in FY24 and 6.9 per cent in FY25, compared with earlier forecasts of 6.7 per cent and 7.1 percent respectively. With regard to reforms in India, the World Bank report said increased reliance on market borrowings had improved the transparency and credibility of fiscal policy and the government had diversified the investor base for securities. The introduction of a formal inflation targeting framework in the past decade was an important step in this direction, it added. The World Bank saw the government meeting the fiscal deficit target of 6.4 per cent of the GDP in FY23, on the back of strong growth in revenue collections, in spite of pressures on the food and fertilizer subsidy front. Sharma said that the general government (centre plus states) deficit was projected to decline to 9.6 per cent in FY23 from 10.3 per cent in FY22 and 13.3 per cent in FY21. Public debt was also projected to decline to 84.3 per cent of GDP in FY23, from a peak of 87.6 per cent in FY21, it said. On inflation, the report said, both levers of macroeconomic policy – fiscal and monetary – had played a role in managing the challenges that emerged since last year. The report noted that the RBI withdrew its accommodative monetary policy in a measured approach as it balanced the need to rein in inflation while continuing to support economic growth.
Source: business-standard
Uttar Pradesh has attracted interest among investors from Japan, Thailand, Singapore and Australia as it gears up for the Global Investors Summit 2023. The countries are interested in sectors like IT, tourism, dairy, electronics, logistics and textiles. Investors from Singapore and Japan are showing interest in the logistics sector apart from IT and electronics, and investors of Thailand are targeting the tourism sector. For the Australians, the dairy and the textile sectors are priority," said the government of UP in a press release. Singapore’s High Commissioner Simon Wong, South Korea’s Counselor Minsim Kum, Thailand’s Ambassador Pattarat Hongthang and Japan’s Consul Tsuchiya Takahiro expressed willingness for strong industrial partnership with Uttar Pradesh at the curtain raiser function of UPGIS 2023. Wong said that Singapore has already strengthened its alliance with the Yogi Adityanath government for UP Global Investor Summit-2023. “India is a very important partner for Japan. Currently, there are 300 different companies in UP, which include manufacturing and the state has a favourable atmosphere in terms of logistics," said Tsuchiya Takehiro, Japan’s Consul. Takehiro has also received assurance from Japan for all economic cooperation for the development of Uttar Pradesh. “On behalf of the Yogi government, officers above the secretary level of the Departments of Tourism, Horticulture, Industrial Development, Dairy, Higher Education have been deployed for establishing communication with companies from Japan, Singapore, Thailand and Australia," the press release added. On 2 December, 2022, Israel expressed desire to invest in Uttar Pradesh. The country will invest in six sectors of the state, including defence and aerospace, IT, agriculture technology, pharmaceuticals, electronics manufacturing and water management.
Source: live mint
Real estate developers in Amritsar have a good reason to rejoice as they are witnessing increased inquiries from NRI investors. With solid economic growth, infrastructural development, enhanced connectivity, and low costs of living, Amritsar, the second largest city in Punjab, has become a robust real estate hotspot in India. As one of South Asia’s most important international trade hubs and Punjab’s most prominent commercial, textile, trading, and tourist destination, the Tier 2 city is experiencing real estate growth augmented by infrastructure and industrial development. Locals and NRIs find Amritsar’s real estate sector highly appealing because of the higher relative returns. Despite the city’s vibrant growth, its real estate segment maintains a traditional price structure, making its properties more affordable than those in Tier 1 cities. Consequently, the city’s housing and industrial development have been attracting many NRI tourists and investors. Amritsar is a strategically located city with excellent connectivity via road and rail to the prime cities of India. The city is also home to an international airport that can handle approximately 150 commercial flights every week, including domestic flights. Additionally, industrial corridors are opening up new business opportunities, triggering a wave of economic development in the city. For instance, the eastern freight corridor project will likely be operational by the end of 2022, boosting trade and commerce between the eastern and northern parts of the country. Additionally, the Amritsar -Jamnagar Economic Corridor (also known as Amritsar – Jamnagar Expressway) is slated to be completed by 2025. Furthermore, the government is strengthening Amritsar’s infrastructure in preparation for the G-20 summit scheduled for March 2023. The holy city of Amritsar is also a popular tourist destination that attracts countless devotees and visitors from different corners of the globe every day. Also, Amritsar is set to receive a Rs 100 crore investment from the Central Government under a project called Swadesh Darshan. Moreover, to attract pilgrims from abroad, the city is planning to host an international day under the same project. Amritsar’s commercial segment consists of high-street retail marketplaces, some organized speciality malls, office space, hotels, and industrial buildings. The city’s economy is driven by its manufacturing and service sectors, as well as its thriving grain and commodity markets and excellent education and healthcare systems. Moreover, SEZs developed by the government are generating immense employment opportunities in the city. Also, world-renowned hotel groups, such as Hilton, are making their debut in Amritsar, making the city a thriving tourist hub. Also, Amritsar is emerging as an industrial hotspot welcoming multinational companies to launch their operations here. Industries play a very important role in shaping Amritsar’s economy. A range of products are produced by the industries in Amritsar, including paper-cutting, panel pins, textile machinery, chemicals, printing presses, wooden screws, engineering goods, and textiles. Investing in industrial properties such as warehouses and logistics has increased in Amritsar due to the growing industrial sector. Considering the prospects of industrial growth, NRIs are increasingly buying industrial plots in the city. Also, Amritsar offers excellent revenue growth opportunities for investors because of its solid customer base. Consequently, numerous commercial real estate options are popping up in Amritsar, including large-scale shopping centres, business parks, entertainment hubs, and IT parks, attracting foreign investors. The increased commercial activities of NRIs in Amritsar have increased housing demand across the city. NRI home buyers expect a vibrant, thriving living environment to satisfy their luxurious lifestyle requirements. With its large selection of residential options, Amritsar perfectly complements the lifestyle of NRIs by offering amenities such as lush greenery, parks, gyms, balconies, open spaces, and jogging tracks. Furthermore, many Amritsar-based NRIs are purchasing homes in the city for retirement purposes. With the rupee depreciating around 10% in 2022 so far against the dollar, NRIs are considering real estate as a sound investment in their homeland.
Source: The financial express
The central government and the Reserve Bank of India have devised a country-specific plan towards implementation of overseas trade in rupee, people aware of the matter said. To strengthen this relationship, open different and newer avenues for trade, and bolster business across this corridor, both countries have signed a Free Trade Agreement that is scheduled to come into force on 29 December 2022. As per the Ministry of Commerce and Industry, India currently has 13 FTAs with multiple countries across the globe; and the latest one with Australia added to the list will further enable India to maintain an active nexus of economic co-operation across the globe. Currently, as per the Ministry of Commerce and Industry, Australia is the 17th largest trading partner of India and India is the 9th largest trading partner of Australia. India-Australia's bilateral trade for both merchandise and service trade was valued at US$ 27.5 billion in 2021. With the ratification of the India-Australia Economic Cooperation and Trade Agreement (‘ECTA’), the bilateral trade in goods and services for both countries is expected to rise from the existing US$ 27.5 billion to US$ 45 billion in five years. This FTA creates a channel of reciprocal trade benefits for both countries, wherein they gain economic precedence in each other’s markets, supporting several sectors and services. Australia will provide zero-duty access to India for 100% of its tariff lines (98.3% tariff lines from day one and the remaining 1.7% in a phased manner). The ECTA ensures an institutional mechanism to encourage business growth between the two countries. This is extremely helpful, especially for labour-intensive sectors such as engineering, textiles and apparel, gems and jewellery, leather and footwear, which otherwise are subject to a 4-5% duty in Australia. India, on the other hand, will provide zero-duty access to Australia for 70.3% of its tariff lines (40.3% tariff lines from day one and the remaining 30% in a phased manner). Around 96% of Australia’s exports to India are raw materials and intermediate products, therefore the tariff concessions offered by India will allow local/domestic industries to get cheaper raw materials and enhance their competitiveness. This FTA is also going to generate employment for over a million people, as estimated, over the next five to seven years. In the future, this FTA will also encourage vertical movement in the value chain with an increased presence of higher-value technological products, such as electronics, pharmaceuticals, medical devices, and more in the trading portfolios.
Future outlook
In the long-term, this move is expected to enhance not just the fiscal relationship between the two countries, but also improve living standards and the general welfare of the people in the two nations. Cementing the strategic partnership between India and Australia is a key milestone to dismantle geographical borders and deepen collaboration. This also opens up the participating economies for mutual investment and furthers the cause of an interconnected world. The passage of the Australia-India FTA in the Australian Parliament, after more than a decade of negotiations, is a significant milestone in India’s aim to achieve the $2 trillion export target by 2030.
Source: economic times
The World Bank on Tuesday revised upwards its GDP growth forecast from 6.5% for India to 6.9% for 2022-23, saying the country was showing higher resilience to global shocks. In its latest India Development Update, the World Bank said the revision was due to higher resilience of the Indian economy to global shocks and better-than-expected second quarter numbers. This comes as a breather since the World Bank had been lowering India's FY23 growth forecast in its World Economic Outlook report since the last 3 times. In October, it had slashed India's GDP forecast by one percentage point to 6.5% from its June estimate of 7.5%, citing impact of ongoing war in Ukraine, rising global interest rates and high inflation. India's economy grew at 6.3% in September quarter 2022-23 as compared to 13.5% in the preceding June quarter, mainly on account of contraction in output of manufacturing and mining sectors. This is the first upgrade of India's growth forecast by any international agency amid the global turmoil.
Fastest growing economy
Amid existing global challenges like tightening monetary policy cycle, slowing growth and elevated commodity prices, Indian economy will experience lower growth in 2022-23 financial year compared to 2021-22. However, it reiterated that despite such challenges, India will register a strong GDP growth and remain one of the fastest growing major economies in the world, due to robust domestic demand. Growth in first half of FY22-23 was supported by solid domestic demand and despite a challenging external environment, the report said. It further noted that exports performed better than expected despite challenging global growth conditions caused by slowing growth in major trade partners (the US, UK and China), Russia-Ukraine war and persistent global supply disruptions (caused by global shortage of shipping containers and supply bottlenecks). In contrast, other emerging market economies (EMEs) -- China, Mexico, Brazil -- decelerated in July-September 2022 quarter.
Advanced materials company Xefco is set to revolutionise the textiles industry with its new waterless dyeing and finishing solution – Ausora. Developed in collaboration with Deakin University and supported by funding from the Innovative Manufacturing Cooperative Research Centre (IMCRC), the patented technology eliminates the need for water by applying dyes and functional coatings to textiles using plasma-enhanced chemical vapour deposition. Tom Hussey, CEO of Xefco, said in addition to saving water and preventing pollution, Ausora delivers an 86 per cent reduction in energy consumption and an 88 per cent reduction in chemical consumption compared with conventional wet processes “Dyeing and finishing textiles is the most unsustainable aspect of the fashion industry, accounting for 20 per cent of global water pollution and 3 per cent of global carbon emissions. “Our collaboration with IMCRC, Deakin University and Proficiency Contracting has enabled us to address this challenge with a comprehensive solution for sustainably dyeing and finishing textiles.” “After successfully demonstrating the process, we are now scaling up to our roll to roll systems. We are currently setting up a pilot manufacturing facility at Deakin University’s ManuFutures in Geelong, which will enable us to refine the technology and facilitate commercial trials for customers in the new year,” Hussey said. Dr Frank Chen, research fellow at Deakin University, said IMCRC’s collaborative model allowed Deakin to integrate with Xefco and Proficiency Contracting throughout the project effectively. “By working as one team with one shared goal, we were able to address any challenges and harness our research expertise to advance the development of this exciting technology more quickly. “And as a result, we have developed a unique atmospheric plasma coating system that reduces the cost, complexity and environmental impact of textile manufacturing by eliminating wet dyeing and finishing processes.” Dr Matthew Young, IMCRC’s manufacturing innovation manager, said the project outcomes had the potential to catalyse meaningful change within the textiles and fashion industries, and placed Australia at the forefront of research into advanced sustainable fabric coating processes, potentially extending the life of garments. “The collaboration between Xefco, Deakin University and Proficiency Contracting demonstrates Australia’s enormous research capability and serves as an exemplar of how industry-led innovation is helping to solve some of our world’s most pressing challenges. “Xefco’s technology will drive environmentally friendly and resource-efficient processes, reducing water consumption and pollution, and changing the way fabrics are dyed and finished in Australia and around the world.”
Source: man monthly
Exercising wait and watch mode, traders in North India are anticipating for the prices of raw materials such as cotton yarn to fall and are also avoiding bulk buying. Yarn prices declined in Delhi as weaving industry was cautious about buying. Panipat’s recycled yarn was stable, but cotton comber and recycled fibre eased, reported Fibre2Fashion. There was a low demand for cotton yarn from domestic and export markets in Delhi while for most of the counts and varieties cotton yarn eased by Rs 5 per kg. In the Delhi market, 30 count combed yarn was traded at Rs 290-295 per kg (GST extra), 40 count combed at Rs 320-325 per kg, 30 count carded at Rs 270-275 per kg and 40 count carded at Rs 305-310 per kg, according to Fibre2Fashion’s market insight tool TexPro. “Every linkage of the textile value chain remained in the wait and watch mode. They are waiting for raw materials prices to go down. Buyers are only buying yarn to fulfil their immediate needs,” a Delhi-based trader told Fibre2Fashion. In Ludhiana, mills and traders were following the wait and watch approach resulting into steady cotton yarn prices in the market. Muted demand from the garment industry is not supporting the current cotton prices. Cotton was traded at Rs 6,550-6,625 per maund in Punjab, Rs 6,450-6,550 per maund in Haryana and Rs 6,700-6,750 per maund in upper Rajasthan and Rs 64,000-67,000 per candy of 356 kg in lower Rajasthan.
Source: KNN
Inditex is taking a step forward in terms of sustainable innovations for the textile industry. Through its homeware and decor brand, Zara Home, the Spanish fashion group based in Arteixo, A Coruña, has introduced a detergent that reduces microfibre release during washing by up to 80%. Already available online and in Zara Home stores, the 750 ml detergent retails at a price of 7.99 euros. According to the company, the innovative solution was developed by Inditex together with BASF Home Care and I&I Solutions in Spain and Germany. The detergent reduces microfibre release by up to 80%, depending on fabric type and washing conditions, as shown by test results from different independent research institutions. Results have shown that the detergent is "particularly suitable" for washing at low temperatures, thus helping to reduce customers' energy consumption by lowering the washing temperature from 40°C to 20°C. The product is made up of 73% natural ingredients and is suitable for washing clothes by machine, as well as by hand. In order to enhance the solution's positive impact, the formula can also be adjusted to allow other detergent manufacturers to make wider use of the technology. "Innovation and collaboration are key to facing the challenges of the textile industry. That is why at Inditex we strive to be more creative and efficient by driving innovative new technologies," said Inditex's chief sustainability officer, Javier Losada. "This project with BASF is a good example of this approach as it shows the effectiveness of cross-industry collaboration and goes one step further as the solution can be adjusted to extend the use of this technology in the industry," he added. Sören Hildebrandt, senior vice president of Home Care, I&I and Industrial Formulators at BASF, said that "with the jointly developed laundry detergent, we are supporting the textile industry on its sustainability path and allowing consumers to improve their own environmental footprint." The Care Chemicals division of the BASF Group is a global supplier to the cosmetics, detergents and cleaners industry. With more than 110,000 employees, the conglomerate boasts a broad portfolio: chemicals, materials, surface technologies, nutrition and care, as well as agricultural solutions. The turnover of the company, which is listed on the Frankfurt Stock Exchange, amounted to 59 billion euros in 2020. The Inditex group, for its part, is currently implementing several sustainable initiatives as it is committed to achieving climate neutrality by 2040. The homeware and decor retailer Zara Home is one of the seven brands with which the company chaired by Marta Ortega operates internationally. Today, the brand is present in 60 different markets with more than 500 stores worldwide. In the first half of the current financial year, the Spanish group increased its profit by 41% to 1.79 billion euros. In addition, turnover grew by 25% at constant exchange rates to 14.8 billion euros.
Source: fashion network
Accumulated mixed waste salt and bio sludge that are generated from effluent treatment of textile processing units are a major challenge to the textile processing sector in Tiruppur. It is said that nearly 60,000 tonnes of mixed waste salt and about 50,000 tonnes of bio sludge lie piled up at the common and individual effluent treatment plants in the knitwear town. Industry sources point out that about 300 operating textile processing units are connected to 18 common effluent treatment plants (CETPs) and these units recover 80 % of water used for processing. The CETPs reuse the water. The remaining 20 % of treated water goes through reverse osmosis membranes and evaporators and waste mixed salt, bio sludge, and chemical sludge are recovered. While the chemical sludge is sent to cement factories for use as co-processing material, bio sludge and waste salt are piled up at the units. Over the last 10 years, with the textile processing units in Truppur going in for zero liquid discharge, the salt and sludge that are generated in this process have turned out to be major challenges. The sources point out that the CETPs are trying out different technologies to process the salt for reuse. They have partnered with various institutions to develop and try the solutions. “We need to look at cost effective methods and the government should support with initial investments,” says B. Murugabhoopathi, Chief Executive Officer of Dyers’ Association of Tiruppur. Recently, the South India Textile Research Association partnered with MAK India and released salt-free dyeing technology. Meanwhile, the State government has signed a Memorandum of Understanding (MoU) with Incompressible Fluid Control System (IFCS) to reduce and reuse the salts from the waste. A technical team is expected to visit Tiruppur next week to study the technology implemented by IFCS at Rayapuram CETP. T. Gopinath, Managing Director of IFCS, said the CETP, with 13 textile processing units connected to it, treats 40 lakh litres of effluent a day and 10 lakh litres is the reject water. A technology commissioned by the company in 2019 at a cost of nearly ₹ 12 crores at the CETP has reduced hazardous salt generation to just 5 % and the second grade sodium chloride recovered is consumed by the CETP. “The technology has reduced generation of hazardous mixed salt by 95 %, brought down coal and energy consumption by 40%, and saved on the overall operating expenses of CETP by 40%,” he said.
Source: the Hindu
The group began with a solitary unit making high-quality yarn. However, in due course, the group catapulted itself to become the largest manufacturer of terry towels and one of the largest integrated home textile manufacturers in the world. From Punjab the company is supplying to the homes of millions of customers across 100 countries. In the meantime, Trident has also diversified beyond home textile products by successfully diversifying into paper, chemicals, energy, and more. Abhishek Gupta, chief strategic marketing, said that “Joining an international industry platform like ITMF is offering access to the various statistics, reports, webinars, and meetings that help explain the short- and long-term dynamics of the global textile industry. Furthermore, having the opportunity to attend the exclusive ITMF Annual Conferences is another important aspect. In today’s world meeting industry colleagues on a personal level in an atmosphere of trust and respect is invaluable. ITMF offers both, concrete data and facts about the global textile industry as well as personal relations within this industry across countries and segments.” Dr. Christian Schindler, Director General of ITMF stated that “it is an enrichment for ITMF and its members that a company like Trident joins ITMF as a Corporate Member. Trident is one of the leading producers of home textiles in the world supplying retailers and brands around the world. Therefore, the company provides an important international perspective on many issues ranging from sustainable production to social compliance. Joining ITMF offers Trident a network of international companies covering the entire textile value chain that will help to better understand and navigate the changing business environment.”
Source: textile world
INTERNATIONAL
The Lenzing Group, an Austria-based international supplier of sustainably produced specialty fibres, and Swedish textile-to-textile recycling company Renewcell have signed a multi-year supply agreement to accelerate the transition of the textile industry from a linear to a circular business model. The agreement contains the sale of 80,000 to 100,000 tonnes of Renewcell’s 100 per cent recycled textile Circulose dissolving pulp to Lenzing over a five-year period, for use in the production of cellulosic fibres for fashion and other textile applications, according to a joint press release by both companies. “The textile industry must change. By signing the agreement with Swedish textile-to-textile recycling company Renewcell, Lenzing is able to further integrate recycling and accelerate the transition of the textile industry from linear to circular. As champions of sustainability, we know that moving towards a circular economy is vital to address the enormous textile waste challenges of the industry,” said Christian Skilich, chief pulp officer of the Lenzing Group. “Lenzing is a major player in our industry, with an inspiring track record of path-breaking technical excellence and sustainability leadership. Our new partnership fits perfectly into Renewcell’s strategy to accelerate the scale-up of circular materials by collaborating with fashion’s most important players. We are more than pleased to join forces with Lenzing with the shared goal of making fashion circular,” said Patrik Lundstrom, CEO of Renewcell, in a comment on the agreement. Canopy, a not-for-profit environmental organisation dedicated to protecting forests, species, and the climate, welcomes the agreement between Lenzing and Renewcell. “Accelerating the transition to low-impact, circular production is the challenge of the decade for the fashion industry. That is why this partnership between Renewcell and Lenzing is so refreshing—it will bring low-carbon Next Gen solutions to market at scale,” exclaimed Nicole Rycroft, executive director of Canopy. “With the climate and biodiversity clocks ticking, the race to circularity is one we need all companies to win.” With its Refibra and Eco Cycle technologies, Lenzing offers solutions for transforming the textile and nonwovens industries towards a circular economy. The company aims to offer Tencel and Lenzing Ecovero branded specialty textile fibres with up to 50 per cent post-consumer recycled content on a commercial scale by 2025. To reach this goal Lenzing partners with recycling pioneers like Renewcell, added the release. Circulose originates 100 per cent from textile waste, like old jeans and production scraps, and turns into dissolving pulp. It transforms textile waste and production scrap into new high-quality textile products.
Source: Fibre2Fashion
The Free Trade Agreement (FTA) between China and Mauritius has failed to boost mutual trade between the two countries. China’s apparel and home textile exports to Mauritius have remained low despite the FTA that came into effect in January 2021. Traditionally, China is an exporter country for Mauritius with respect to apparel and home textiles trade. China’s home textile exports to the country were recorded at $10.851 million in H1 2020 which came down to $6.722 million in H1 2022. The shipment stood at $8.261 million in H2 2020, $5.492 million in H1 2021, $9.814 million in H2 2021 and $6.722 million in H1 2022. The FTA came into effect in H1 2021 when the exports fell compared to the preceding periods. The annual exports amounted to $15.306 million in 2021, $19.112 million in 2020, $14.270 million in 2019, $14.409 million in 2018 and $12.870 million in 2017. The country exported home textiles worth $12.552 million to Mauritius in the first ten months of this year, according to Fibre2Fashion’s market insight tool TexPro. China does not import home textiles from Mauritius in significant quantities. China’s apparel shipment to Mauritius was at $4.830 million in H1 2020 which came down to $2.519 million in H1 2022. The shipment amounted to $4.536 million in H2 2020, $4.638 million in H1 2021, $3.071 million in H2 2021 and $2.519 million in H1 2022. Apparel exports amounted to $7.710 million in 2021, $9.367 million in 2020, $16.011 million in 2019, $19.290 million in 2018 and $9.635 million in 2017. The shipment peaked in 2018, years before the FTA was implemented, and continued to go downwards in the following years. Apparel exports from China to Mauritius were recorded at $4.846 million in the first ten months of 2022, as per TexPro.
Source: Fibre2Fashion
Unlike the previous sustainability-focused regulatory frameworks such as EHS (Environmental, Health and Safety), Corporate Sustainability and CSR (Corporate Social Responsibility), ESG focusses widely on the key environmental and social elements as well as governance structures. It ensures representation of all the stakeholders who are interested to learn about the industry’s approaches to ensure sustainability. These stakeholders include not just the investment community but customers, suppliers and employees too (Peterdy 2022).
Overview of the ESG pillars
Environmental
This pillar includes the industry’s considerations of the environmental impacts of its business and practices to manage the associated risks (Mathis 2022; Peterdy 2022). Some examples include direct and indirect GHG emissions, climate change, hazardous chemical discharge and water pollution, waste pollution and natural resource depletion. The management practices include natural resource management, decarbonization and energy management, effluent treatment and hazardous waste management, to name a few.
Social
The social pillar addresses the industry’s relationship with its stakeholders (Peterdy 2022). It endorses the ethically and socially conscious themes in the industry. This includes the employee wellbeing such as health and safety and fair wages as well as the industry’s impacts on the communities where it operates. Other major examples stated by Mathis (2022) include data privacy, robust labor standards, compliance to human rights, employee equity and inclusion and customer satisfaction.
Governance
ESG’s third pillar deals with the accuracy and accountability of the industry’s leadership. It focusses on the best compliance practices and transparency of the companies. Examples of governance may include company leadership, corruption and bribery, political lobbying, audit committee structure and internal control and regulatory policies (Mathis 2022).
ESG and Pakistan’s textile industry
The global community’s demand for sustainability in the textile industry has reached a stage of critical importance. Compliance to the international conventions on human rights, labor rights, environment and good governance has become non-optional for the industry to maintain its competitive position. This compliance via ESG principles is a ‘win-win’ situation for the industry. The industry will not only boost its business in the international market, it will also ensure stakeholders’ rights and fulfill its responsibility towards mitigating risks to the natural environment. Pakistan’s textile industry has shown significant progress in terms of fulfilling its social and environmental responsibilities. Despite the fact that the country’s major policy interventions such as the National Climate Change Policy (NCCP), Nationally Determined Contributions (NDCs) and the Textile Policy 2020-2025 do not clearly emphasize on social and environmental sustainability in the industry, sustainability has been a bottom-up approach, led by the industry itself. From acquiring international compliance certifications such as GOTS, Oeko Tex and BCI to promoting internationally recognized initiatives to achieve net zero targets as well as employee wellbeing, the industry has aligned its current and future strategies with the principles of the UN-SDGs. The efforts, however, need coherence under the umbrella of the ESG framework. The industry needs to come together to find aggregate solutions and impose coherent policies to ensure sustainability in the sector. Although, international rules, norms and markets have been the major pathways of influence for the industry to go sustainable, the motivation to compete in the global market should also come from the intrinsic values. These may include collective approaches for capacity building and coalition building to make the country’s textile sector socially and environmentally sustainable. High impact priority areas The following are some of the high impact priority areas which require the industry to scale-up its ESG solutions: Raw materials, climate, chemicals, sustainability measurement, fair labour, engaging consumers and innovation and circularity (Accenture 2022). The priority ESG solutions associated with the raw materials include reduction of GHG emissions associated with the raw material production, enhanced traceability and use of internationally certified raw materials. Regarding climate, the industry needs to set targets to achieve net zero emissions, adopt energy efficiency measures and set emissions reduction pathway plans. Hazardous chemical management is another high impact priority area which requires compliance with the ZDHC requirements, transparent reporting on chemical use and hazardous chemical discharge, strong commitment to ensure wastewater management and eliminate hazardous chemicals, regular testing of wet processing facilities and transparent auditing. Best practice benchmarking; development of comprehensive sustainability strategies, governance and goals; quantifying progress tracking on ESG goals and publicly reporting sustainability progress and transformation efforts are some of the significant ESG solutions for sustainability measurement. Further, fair labor to protect workers’ rights is another crucial priority area that demands ESG solutions from the textile industry. These include fair compensation programs, responsible recruitment, empowerment and education programs and respect for human rights and health and safety standards. Consumer engagement includes communicating progress on ESG goals to the consumers, formulating standards for communicating ESG impacts of products to the consumers, engaging consumers in developing sustainability solutions, providing traceability data to the consumers and educating consumers about industry’s ESG commitments. Innovation and circularity, under the ESG framework, requires the industry to develop and execute circular economy strategies and action plans and invest in innovative circular business models. Conclusion and further work Pakistan has already shown promising progress in aligning its development with the UN-SDGs and international requirements. The current efforts on social and environmental sustainability, however, need to be accelerated by adopting ESG solutions in the textile sector. The relevant stakeholders need to come together and find aggregate solutions to support the sector flourish in the increasingly competitive global markets. ESG practices, that ensure a holistic approach to safeguard the natural environment, human wellbeing and strengthen governance structures, need to be adopted widely, in a coherent and effective manner possible. This is possible, only, when the sector develops a long-term ESG vision. Significantly further, All Pakistan Textiles Mills Association (APTMA) suggests that, strengthening of the governance structure, is a crucial element of ESG, that helps enhance sustainability measurement. One part of this is to regulate the sustainability assessments and inspections conducted by the national and international compliance bodies, through development of the standards based on the mandates of the UN conventions on human rights, labor rights, environment and good governance. Pakistan needs to legislate a central authority, at the federal level, to compile and standardize all compliance requirements and to regulate the functioning of all the compliance bodies. This central authority will be responsible to issue guidelines for the compliance bodies to perform sustainability assessments, based on the requirements by the international treaties on human and labor rights as well as environment and good governance. The statutory body will also issue guidelines, with minimum requirements, for the legal enrollment and registrations of the compliance bodies and follow tripartite consultations, as mandatory procedures during their assessments. The statutory body will provide an appeal forum to address concerns petitioned by the tripartite partners and resolve any disputes among them. Pakistan is currently experiencing a plethora of the compliance bodies. The functioning of these bodies is crucial for the industries, as they are mandated to acquire certifications to maintain their export markets. These certifications have also motivated the industries to enhance their compliance and fulfill their social and environmental responsibilities. However, the compliance bodies are functioning in the absence of a central statutory body responsible to monitor their operations in the industry. This absence of the legal monitoring of the compliance bodies is a threat, that not only projects a biased picture of the sustainability progress of the country, but also functions without a tripartite consultation, crucial to understand the local nuances. Significantly further, the global community’s demand for sustainability in Pakistan’s industries has reached a stage of critical importance. Compliance to the international conventions on human rights, labor rights, environment and good governance has become non-optional for the country to maintain its competitive position. In these critical times, when Pakistan needs to project its sustainability and compliance progress in a vigilant manner, these unlawful inspections by the compliance bodies might cause grievance in the industry. It is of critical importance for Pakistan to formulate a statutory body, that is responsible to regulate and monitor all the compliance bodies, via issuance of the national compliance standards for them. The major responsibility of this statutory body will be, to issue guidelines for industrial compliance based on the mandatory requirements by the UN conventions on human rights, labor rights, environment and good governance, standardized for Pakistan to fulfill. The statutory body will also issue guidelines, with minimum requirements, for all the compliance bodies for their legal enrollment and registrations. Importantly, the statutory body will make tripartite consultations mandatory for the certification bodies to consider during their inspections. The tripartite partners, being generally the government, employers and workers, will have the authority to appeal against the unlawful inspections, that are undisciplined and unfair. This will take place through an appeal forum provided by the statutory body, that will address concerns petitioned by the tripartite partners and resolve any disputes among them. The statutory body will legally bind all the national and international compliance bodies, to align their inspections with its guidelines and standard procedures for the assessment of the industries, in a regulated and an acceptable manner. The formation of this statutory body will be a milestone achieved by Pakistan to project its sustainability progress in a real and a disciplined manner.
Source: The brecorder
General Manager of JADE Textile Egypt Selim Sankaya said that the company is ready to increase its investments in the Egyptian weaving sector to $70 million and to up its total investments in the weaving and textiles industry to $220 million. Sankaya's announcement came during a meeting with Mohamed Abdel-Wahab, the CEO of the General Authority for Investment and Free Zones (GAFI), to discuss means of expanding the company's investments in Egypt. Sankaya noted that JADE Textile operates five factories for ready-to-wear clothes in the Egyptian market with investments of up to $150 million. The factories have already established partnerships with international brands. During the meeting, Abdel-Wahab noted that GAFI is keen on extending all types of support to new investments in the textiles and ready-to-wear clothes sectors as they provide a large number of job opportunities. He noted that JADE Textile would be able to create 12,000 job opportunities in the country in addition to indirect jobs in its expansion. He also noted that the company has been able to export all its products at $180 million annually through these partnerships.
Source: The english.ahram
Envoy Textiles, a leading denim manufacturer and exporter, has finalised the deal with the ADB to get € 10.80 million in loan for purchasing machinery for its second spinning unit. The board has gone ahead with the long-term borrowing agreement with the Asian Development Bank (ADB), said the company in a filing with the Dhaka Stock Exchange website on Monday. The repayment period is seven years, including a grace period of 1.5 years.Despite the news, the stock did not move up from the floor price -- Tk 43.90. It has remained stuck at the floor since September 21. The company has also informed that the new unit will be automated and more energy efficient, and will have an annual yarn production of 3,600 tonnes to be used for mainly in-house production of denim fabrics. Earlier in May this year, the company accepted an offer from the Manila-based lender of the loan meant for its second spinning unit.
Source: the financial express
