India's textile industry faces tough times as consumers cut spending
India's Birla Cellulose develops Liva Reviva with 30% textile waste
Indian government plans to increase freight traffic to 45% by 2030
PLI scheme to deliver modest capex push across sectors: Credit Suisse study
Textiles ministry working towards GI-tag for weavers, inclusion in FTAs: Sitharaman
Ind-Aus ECTA to come into force on Dec 29
Nov 2022 Indian merchandise exports worth $31.99 bn, imports $55.88 bn
INTERNATIONAL
Euro area international trade in goods deficit €26.5 bn in Oct 2022
Forecasters cut global growth projections, cite many factors: McKinsey
US economic improvement to continue in 2023, forecasts ISM
Up Next in Fashion: Extended Producer Responsibility?
China steps up support for firms seeking opportunities overseas
Fashion Federations Directory with over 100 apparel associations, federations and NGO’s
Industrial production falls 1.9% in EU & 2% in euro area in Oct 2022
CARB approves action plan to shift California away from fossil fuels
Italy's industrial production drops 1.6% YoY in Oct 2022: Istat
Vietnam's retail sales up 20.5% YoY in Jan-Nov '22: HSBC
NATIONAL
India's $200 billion textile and apparel industry is facing a crisis as consumers in the United States, Europe and other big markets have cut spending on clothing following a surge in inflation after the war in Ukraine, industry officials said. While the overall economy is relatively strong and is outperforming major economies, the textile sector is a notable exception and orders suggest the downturn will continue well into 2023, raising the risk of layoffs in an industry that employs more than 45 million people. Exports, which constitute about 22% of the industry, have fallen for five months in a row - declining over 15% year-on-year in November to $3.1 billion. Domestic sales are sluggish despite strong growth in the overall economy because of high costs and cheap imported garments, manufacturers say. After bumper sales earlier this year, local textile factories are now cutting production - contributing to a 4.3% contraction in manufacturing output in July-September quarter that has raised concerns among policymakers. The shock comes as Prime Minister Narendra Modi's government struggles to create employment for millions of youngsters entering the job market each year. After 18 months of robust growth through mid-2022, global retail sales of clothing have been dragged down by high inflation and depressed consumer sentiment, and prospects for 2023 look gloomy, a McKinsey report said last month. In India, the manufacturing sector, contributing 16% of GDP, has been hit by rising raw material costs and weak demand, despite bright growth elsewhere. Manufacturing showed no signs of growth in the first half of the current April-March fiscal year while the overall economy, helped by agriculture and services, expanded 6.3%. Textile manufacturers, along with makers of footwear, furniture, electronic and electricals, have been hit as companies battle to pass on rising input costs, while consumers have cut expenditure on these products as they spend more on food and fuel. In the textile industry, manufacturers say higher domestic cotton prices and other costs have hit profit margins, while overseas orders for next summer are down by about one-third and domestic demand remains weak. "We see difficult times at least for the next six months as orders from major markets including the EU and the USA have come down substantially," said Naren Goenka, chairman, Apparel Export Promotion Council, citing inflation and global headwinds hitting domestic sales as well. Sahid Khan, a garments manufacturer in Ahmedabad, the textile hub in Modi's home state of Gujarat, said despite a fall in cotton prices by about 40% from record highs hit in 2022, profit margins were down due to lower sales in the domestic market. "Interest rates on bank loans have gone up along with labour costs, but my sales are down," he said adding that domestic cotton prices remained high compared to global prices, and manufacturers were unable to compete with cheap imports from Bangladesh. Local cotton is at least 10% more expensive than global benchmarks, said Atul Ganatra, president of the Cotton Association of India (CAI). "The government needs to scrap the 11% import duty on cotton so local textile mills can have a level playing field," Ganatra said. "This will allow mills to have options to import cotton from overseas which is nearly 10 cents per pound cheaper than local supplies." Shares of leading textile companies like Arvind Ltd, Vardhman Textiles, Trident and Nahar Spinning Mills have plunged between 20% and 40% this year, while the benchmark Nifty is up over 7%. The industry has sought duty free imports of cotton, an interest subsidy on bank loans and expansion of production linked incentives to face the crisis. The government could soon consider the demands, and an announcement is likely in the annual budget due in February, said a government official with direct knowledge of matter, asking for anonymity as he was not authorised to speak to media.
FEAR OF JOB CUTS
Many textile manufacturers, who have frozen hiring of workers, have warned of jobs cuts if the government fails to provide relief soon. In Tirupur, a knitwear manufacturing hub in southern India employing over 600,000 workers, many small firms have slashed the workforce as they say they are operating on less than 50% capacity. With annual production worth over $8 billion for domestic and overseas markets, the local industry fears it will suffer up to a one-third fall in exports this year from $4.5 billion in 2021/22, said Raja Shanmugham, former president of the Tirupur Exporters' Association. "There are few orders for next summer," he said, adding big retailers were asking for heavy discounts to lift earlier booked orders. Sales in the domestic market, which usually pick up during the festival and marriage season starting October, were weak this year, he said. Chandira Kumar, head of Sentinel Clothing in Tirupur, said he had let go two-thirds of his workers and was left with 150, as he was finding it difficult to survive on thin profit margins and few orders. "If the current trend continues, I may soon have to shut down the factory," he said.
Source: economic times.
India-based Birla Cellulose, a leading global producer and supplier of Man-Made Cellulose Fibre (MMCF), has developed Liva Reviva with 30 per cent textile waste content. The company has successfully stabilised production of Liva Reviva, a Recycled Claimed Standard (RCS) certified product, which also contains 70 per cent of dissolved wood pulp from sustainable forests (FSC certified). Circularity has been the key goal for Birla Cellulose in its commitment towards contributing to sustainable development. In 2019, the company had launched Liva Reviva with 20 per cent pre-consumer waste content. The quality of Liva Reviva remains comparable to the quality of fibre produced using virgin wood-based pulp, which ensures that Liva Reviva finds widespread applications amongst major global brands, according to a press release by Birla Cellulose. Liva Reviva can be tracked with the help of the Green Track platform. The platform, which has been designed by Birla Cellulose, helps trace the origin of the fibre and brings transparency and traceability in the long and complex textile value chain via blockchain technology. Through the Green Track platform, Birla Cellulose along with its value chain partners will be able to track textile recycle material flow in the supply chain in real-time—from certified forests to end consumers—by scanning a QR code. This will help consumers to make informed purchase decisions. Birla Cellulose’s current efforts are concentrated on developing products made with industrial waste, post-consumer waste, and alternate feedstock. The use of alternate feedstock in total production is a climate friendly solution that helps in reducing waste. The fibre producing company’s R&D efforts towards developing a circular economy model and increasing the utilisation of alternative textile waste feedstock has led to several innovations that have shown promising results and are in various stages of development—starting from the lab level to a pilot; some of these projects have already reached the commercial level. Birla Cellulose aspires to increase the offering of circular fibre in textile products up to 100,000 tons by 2024 using textile waste and alternative feedstock that will help reduce the environmental footprint of textile waste and enhance circular economy. Every year significantly large amounts of textile waste are generated worldwide. Out of this waste, a very little quantity gets recycled into new clothing. The generation of large quantities of textile waste is leading to a significant increase in environmental pollution. Major fashion brands and the textile value chain are planning their next steps more responsibly to decrease textile waste generation in the coming years.
Source: Fibre2Fashion
India’s National Rail Plan aims to increase the share of freight traffic by rail from the current share of 27 per cent to 45 per cent by 2030, according to the Indian ministry of railways. The plan also includes the construction of dedicated freight corridors (DFCs) as an important policy measure to arrest the trend of falling market share of railways in the country. The National Rail Plan seeks to shift the advantage of market share in favour of rail transport, ministry of railways said in a press release. The DFC operation will bring-in efficiency in freight operation and enable rail tariff being more competitive because of its following operational/design features: higher throughput per wagon and per train to run heavy haul trains with overall load of 13000 tonne; lower energy consumption to reduce operation and maintenances costs; and reduction in transit time to reduce logistic cost of transportation and better utilisation of rolling stock. Moreover Indian Railways has taken a number of multi-pronged strategies to increase its modal share in freight segment which includes tariff rationalisation and tariff/freight incentive schemes, including diversification of freight basket, liberalised Automatic Freight Rebate Scheme in Traditional Empty Flow Directions, rationalisation of station to station rates policy, Rationalisation of Merry-Go-Round, concession in short lead traffic, discount in freight to fly ash traffic booked in open/flat stock and covered wagons, round trip charging for ultra-short lead (up to 50 kilometres) container traffic, Round Trip Traffic (RTT) Policy, Automobile Freight Train Operator Scheme (AFTO), and Introduction of Cube Container for two wheeler traffic. A New ‘Gati Shakti Multi-Modal Cargo Terminal (GCT)’ policy has also been launched to facilitate development of cargo terminals on non-railway land, as well as on railway land (partially or fully) etc. In addition, various other schemes have also been introduced to attract private investment in general purpose wagons, special purpose/high-capacity wagons, and automobile carrier wagons etc.
Source: Fibre2Fashion
The capital investment made by companies eligible for production-linked incentives (PLI) will have a modest impact on the annual incremental increase in capex across sectors, of about 8-10 per cent on average, a study by Credit Suisse says. The study points out the annual incremental increase in capex by PLI players in speciality steel will be the highest, at 17 per cent, followed by textiles (14 per cent), auto (10 per cent), pharma (4 per cent) and all the other schemes at an average (4 per cent, excluding new sectors such as advanced cell battery manufacturing where a local base for manufacturing is being built). Major investments under PLI will come from sectors like auto and speciality steels ($5.1 billion each) followed by textiles ($2.3 billion) and pharma ($1.9 billion). In most other sectors, the capital investment is very modest, at less than $1 billion. These include mobile devices, IT hardware, telecom, food processing and white goods, among others. The incentives offered to firms under the PLI schemes come with a condition: they have to make a minimum threshold of incremental capital investment each year and generate minimum stipulated incremental revenues during the scheme's currency.
Credit Suisse has raised some key concerns.
One such is that the participation of global players in big strategic sectors is missing, except in areas like advanced batteries. Secondly, there are too many players in each sector. The scheme should have focused on a few champions instead. For instance, as many as 51 companies in the food processing sector are eligible for PLI, while the number in textiles is 61. Other sectors with many players include pharma (55), white goods (45), bulk drugs (49) and telecom (31). However the government is already reworking some of the schemes to attract more global players. In IT, for instance, it plans to replicate the mobile device model by incentivising global firms to shift some of their laptop- and PC-making capacity to India. There is also a plan to have a second PLI for battery making. The Credit Suisse also says that the PLI scheme is pinning its hopes more on assembly-based operations than most other sectors, for reaching peak revenue targets. Companies in this segment are required to make the lowest incremental investment across schemes. This category includes the flagship mobile device, IT products and telecom. The peak annual revenue expected from these three PLIs under the scheme is $38.7 billion, or 48 per cent of the total peak revenues by the 14 PLI schemes. Yet the capital investment share of the three is only 8 per cent. In contrast, new manufacturing PLIs such as batteries, solar PVs, KSM and bulk drugs and medical devices —sectors in which the country is dependent on imports —will generate only 14.6 per cent of total revenues expected from PLIs. Yet their capex contribution for eligibility under the scheme is a substantial 35 per cent. The third group of PLIs are for traditional industrial sectors looking for a growth push. These include auto and auto ancillaries, food, textile, pharma, white goods, speciality steel. They have to contribute over 57 per cent of the total PLI scheme capex, but would contribute 36 per cent of the PLI revenues.
Source: business-standard
The Ministry of Textiles is working towards having Geographical Indication-tag for weavers and including them in Free Trade Agreements (FTAs), said Union minister Nirmala Sitharaman while inaugurating an exclusive weave-based handloom sari festival “My Sari My Pride". The exhibition has 75 handwoven saris from across the country, sourced by the textile ministry. Sitharaman said that the Prime Minister in 2014-2015 gave the vision of 5 F, from Farm to Fibre to Fabric to Fashion to Foreign. This vision has become a principle objective of the Ministry of Textiles under which this exhibition has been organised and weavers are encouraged to display their work. A touch-screen display has been put up at the exhibition to provide viewers information about the traditional significance of handwoven saris and weavers involved in making these exquisite pieces. Handloom is a symbol of India’s rich and varied cultural heritage. It is also a source of employment to nearly 35 lakh people. To showcase India’s handloom heritage, a handloom saree festival is being organized by the Ministry of Textiles. The uniqueness of saris such as Paithani, Kotpad, Kota doria, Tangail, Pochampally, Kancheepuram, Thirubuvanam, Jamdani, Santipuri, Chanderi, Maheshwari, Patola, Moirangphee, Banarasi Brocade, Tanchoi, Bhagalpuri Silk, BawanButi and Pashmina Sari Sari , among others, attracts customers from across the world with exclusive art, weaves, designs and traditional motifs.
Source: livemint
The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) signed on April 2 this year will come into force on 29 December, minister of state in the ministry of commerce and industry Anupriya Patel told parliament recently. Indian exports will gain from preferential zero duty market access in Australia for cent per cent of its tariff lines. India’s labour-intensive sectors, including textiles, leather, footwear and furniture, will benefit from this, an official release said. India has provided preferential access to Australia on over 70 per cent of its tariff lines, primarily raw materials and intermediaries like coal and mineral ore. Australia has also provided additional market access.
Source: Fibre2Fashion
India’s overall exports were worth $58.22 billion in November this year, showing a growth of 10.97 per cent over the same period last year. Overall imports in November were worth an estimated $69.33 billion—a year-on-year (YoY) growth of 5.60 per cent. Merchandise exports and imports in the month were worth $31.99 billion and $55.88 billion over $31.80 billion and $53.03 billion respectively in November last year. India’s overall exports in the April-November period this year were estimated to be $499.67 billion—a YoY growth of 17.72 per cent, ministry of commerce and industry said in a media release. As India’s domestic demand has remained steady amidst the global slump, overall imports during that eight-month period were estimated to be $610.70 billion—a YoY growth of 29.47 per cent.
Source: Fibre2Fashion
INTERNATIONAL
The first estimate for euro area goods exports to the rest of the world in October this year was €252.8 billion, an increase of 18 per cent compared with €214.3 billion in October last year, according to Eurostat. Imports from the rest of the world stood at €279.3 billion during the month, a rise of 30.7 per cent compared with €213.7 billion in October 2021. As a result, the euro area recorded a €26.5 billion deficit in trade in goods with the rest of the world in October compared with a surplus of €0.6 billion in October last year. Intra-euro area trade rose to €234.7 billion in October, up by 17.9 per cent compared with the same month last year. In January to October 2022, euro area exports of goods to the rest of the world rose to €2,374.1 billion—an increase of 19.1 per cent compared with the same period last year; imports rose to €2,665.9 billion—an increase of 43 per cent compared with January-October 2021. As a result, the euro area recorded a deficit of €291.8 billion during January-October this year compared with a surplus of €129.3 billion during the same period last year. Intra-euro area trade rose to €2,263.2 billion during the period—up by 26.3 per cent compared with the same period last year. The first estimate for extra-European Union (EU) exports of goods in October this year was €225.2 billion, up by 18 per cent compared with €190.9 billion in the same month last year. EU imports from the rest of the world in October this year stood at €263.4 billion, up by 33.1 per cent compared with €197.9 billion in the same month last year. As a result, the EU recorded a €38.2 billion deficit in trade in goods with the rest of the world in October this year. Intra-EU trade rose to €366.6 billion in October this year, an 18.2 per cent hike compared with the same month last year. In January to October this year, extra-EU exports of goods rose to €2,115.7 billion—an increase of 18.8 per cent compared with the same duration in 2021, and imports rose to €2,511.1 billion—an increase of 47.7 per cent compared with the same period last year. As a result, the EU recorded a deficit of €395.3 billion during the period compared with a surplus of €80.1 billion during the same period last year. Intra-EU trade rose to €3,507.4 billion during the period this year, a 24.5 per cent rise compared with the same period last year.
Source: Fibre2Fashion
Many global economic indicators for October and November pointed to slower growth or contraction, as central banks continue to raise policy interest rates to fight inflation, according to the Global Economics Intelligence report for November published by McKinsey & Company. Forecasting institutions are trimming growth projections, citing a number of challenges, including policy tightening, inflation, Russia’s invasion of Ukraine and pandemic-induced disruptions. The current policy interest rates of the US Federal Reserve (3.75-4 per cent), the European Central Bank (1.50-2.25 per cent) and the Bank of England (3 per cent) all reflect repeated rate rises of 75 basis points, including one in November. Each institution is expected to make a final, possibly smaller, rate hike before the new year, McKinsey said in a press note. The tightening is intended to manage inflation toward 2 per cent targets. At the moment, the United States is experiencing ‘disinflation’—the period when prices are still climbing but at a slowing pace. From a 40-year high of 9.1 per cent in June, the US consumer price index has slowed each month, reaching 7.7 per cent in October. In the eurozone, inflation slowed to 10 per cent in November from October’s record high of 10.6 per cent; in the United Kingdom, inflation reached 11.1 per cent, a 41-year high. Recent signs suggest, however, that absent unforeseen shocks, inflation may have peaked. Natural gas prices in Europe are still twice the prewar level but have fallen below €150 per megawatt hour (Dutch front-month futures) from an August peak of €340. Trade data (a lagging indicator) show stable levels in September but a slowdown in October. As measured by the CPB World Trade Monitor, trade volumes improved in September (0.1 per cent) and August (0.8 per cent). Recent data from the Container Throughput Index, however, show a retreat in October, with an index reading of 120.8 (124.2 in September), as throughput slowed in China and Northern Europe. Sea freight rates, meanwhile, have remained historically high through the pandemic. Rates are highest (but declining) in China and India; they are not as high in the United States and Europe, but are climbing, McKinsey said. Consumer confidence mainly worsened in October, as measured by the Organisation for Economic Cooperation and Development. Readings dropped in the composite global index and also in most surveyed individual economies, with the United Kingdom and eurozone showing the most downward movement. Only Brazil and India showed improvement. Consumer spending was also down in October in most surveyed economies; exceptions were Brazil and Great Britain. Manufacturing is in a mild contraction, on average, worldwide. The JPMorgan global purchasing managers’ index (PMI) had a reading of 48.8 in November, below the expansion threshold of 50. The sector has been in a slow-motion retreat since May’s expansionary reading of 52.3. Industry and consumer activity sags under weight of inflation and higher interest rates; forecasting institutions trim GDP growth projections for 2023, McKinsey added.
Source: Fibre2Fashion
US economic improvement will continue next year, according to the December 2022 Semiannual Economic Forecast published by the Institute of Supply Management (ISM). Revenues are expected to increase in 15 of 18 manufacturing industries. Capital expenditures are expected to increase by 2.6 per cent in the manufacturing sector after a 12-per cent increase in 2022. The US apparel industry is operating at or above the average rate of 88.4 per cent. The manufacturing employment base is expected to grow by 3.9 per cent in 2023. Compared to the first half (H1), growth in the second half (H2) next year is projected to rebound in manufacturing. Expectations for the US manufacturing sector for 2023 are positive, as 45 per cent of survey respondents expect revenues to be greater next year than in this year. The panel of purchasing and supply executives expects a 5.5-per cent net increase in overall revenues for 2023, compared to a 9.3-per cent increase reported for 2022. Fifteen of the 18 US manufacturing industries, including apparel and textiles, expect revenue improvement in 2023, the Tempe, Arizona-based ISM said in a release. Respondents expect raw materials pricing pressure to increase in 2023, but still see H1 2023 profit margins improving over H2 2022. Wages and employment will continue to grow. Manufacturers also predict growth in both exports and imports in 2023. The panel predicts that prices paid for raw materials will increase by 2.5 per cent during the first five months of the year, with an overall increase of 2 per cent for 2023. This compares to a reported 11.4 per cent increase in raw materials prices between the end of 2021 and 2022. US manufacturing purchasing and supply executives report their companies are currently operating at 88.4 per cent of normal capacity. This is a 1.2-percentage point increase when compared to May 2022 (87.2 per cent) and a decrease when compared to December 2021 (88.7 per cent).
Source: Fibre2Fashion
There have been many reports released as of late that center on the striking amount of waste produced by the fashion industry, with many including images that depict vast wastelands filled with clothing, many of them located in developing nations. As for how clothing gets from store shelves to beaches in Ghana and Chile’s Atacama Desert, traditionally, they are “donated” from wealthy nations to developing ones, but in many cases, the items end up as waste in landfills. This demonstrates the fact that the end user becomes responsible for the environmental impacts and disposal of the items, and it begs the question: Who should be responsible for the problem of discarded garments and accessories?
Extended producer responsibility
Extended producer responsibility (“EPR”) is an approach that places significant responsibility for the disposal of manufactured goods on the manufacturer. The aim is to incentivize manufacturers to extend the life of their products and to shift some of the environmental costs associated with product disposal from the consumers and the environment to the producers themselves. While such policies remain scarce around the world, this is set to change with the global focus on the circular economy, particularly in the retail-clothing, textile, footwear, and leather (“R-CTFL”) industry. In South Africa, the paper and plastic packaging, lighting and electronic and electrical goods sectors are regulated by the National Environmental Management: Waste Act, 2008 read with the Extended Producer Responsibility Regulations, 2020 (“EPR Regulations”). In France, numerous EPR schemes apply to a variety of industries, including the textiles and footwear industry. The French EPR program is the most extensive in the European Union and is set to double in its application from 12 to 22 industries over the next three years. Although the collection of old clothes by the producer responsibility organization (“PRO”) in France is effective, once collected there are no facilities in the country to recycle or upcycle the textiles. Furthermore, manufacturers are charged a mere EUR0.01-0.06 per clothing item, depending on the type and durability of the garment and the incorporation of recycled fibers. These measures do not seem to disincentivize overproduction and once collected, items are likely to end up elsewhere. The South African EPR Regulations provide various options for the management of an EPR scheme. Independent PROs have been established and producers can voluntarily join or establish and manage an EPR scheme in-house. However, unlike France, which has a single PRO per industry, the options available in South Africa lead to competition concerns since not all producers join the same PRO, resulting in hefty administration costs for those who comply. It has also been argued by the industry that the penalties for non-compliance are not persuasive enough.
Pre-loved & the secondary market
Interestingly, luxury and fast fashion brands alike have recently indicated the inclusion of second-hand clothing platforms to serve their existing customer base. The second-hand market is set to grow globally to $14.5 billion in the next five years. This shows that voluntary EPR programs may prove more effective than legislative interventions. For a successful second-hand market to exist, overproduction must be minimized, and the quality of the clothes improved for longevity. Many industry specialists worry that the current speedy trend-based brands are interested in the financial value of this sector and present another example of greenwashing. Perhaps the potential profits associated with the growing second-hand market will incentivize improvement or at the very least, better quality of virgin items to ensure longevity for the second-hand market.
Local retail-clothing textile, footwear & leather industry
In South Africa, landfills are running out of capacity although clothing and apparel are not yet a constraint in this regard. The local R-CTFL industry must regain its market share which is recognized in the South African Retail-Clothing, Textile, Footwear and Leather Value Chain Masterplan, signed in 2019. Signatories to the R-CTFL have committed to local production of 65 percent by 2030. The list includes: (1) Truworths Limited; (2) Woolworths; (3) Mr Price; (4) the Foschini Group; (5) Edcon (Edgars); (6) Pepkor; and (7) Pick n Pay Clothing. For now, with rising costs, current and historic imports of cheaply made clothing may be all that many South Africans can afford. However, the environmental impacts should not be borne by the consumer alone. It appears that the EPR scheme may be particularly well suited to synthetic clothing items. The influx of clothing from abroad caused a stumbling block for the local manufacturing industry. An EPR program for the R-CTFL industry could assist in the prevention of R-CTFL wastelands and provide environmental regulation of excessive imports.
EPR scheme to assist local industry & curtail excessive imports
The
Source: The fashion law
China's trade council said Thursday that it has moved to restore economic and trade exhibitions overseas to help Chinese businesses explore opportunities in other countries. The China Council for the Promotion of International Trade has given its approval for 15 overseas economic and trade exhibition projects scheduled in eight countries, including Germany, the United States and the United Arab Emirates, between November 2022 and February 2023. These projects feature sectors such as textiles, auto parts manufacturing, sports, electronics and consumer goods, according to the council. So far, six of these projects have been launched, with participating firms providing positive feedback, it said. The council added that it would prioritize developing economies, emerging markets and strategic emerging industries, while hosting exhibitions and encouraging firms to participate next year.
Source: The china
A significant part of the global fashion industry is driven by large organizational entities that strengthen the impact of fashion on the world economy. Federations connect the different parts of the fashion business, from the manufacturing level to the creative direction. Thus, becoming the ambassadors of the textile and apparel sector. Some focus on promoting the newest fashion designs and textiles worldwide by hosting trade fairs and fashion shows. While other federations address cross-industry issues that impact economic policies, seeking sustainable and innovative solutions for the industry. As a leading international B2B platform, FashionUnited maintains the Fashion Federations Directory, a database of apparel federations and trade organizations worldwide. The Directory includes over 100 entities, ranging from trade to non-profit organizations. For each of the listed federations, fashion professionals find a profile page with their mission and vision, along with other relevant information. Through the Federation Directory, professionals have the opportunity to connect with associations that share their values and objectives, whether it is trade initiatives, the metaverse or fashion activism. The Directory includes various networks in footwear, accessories, sustainability, as well as digital fashion. Some of them are large associations, such as AAFA, IAF, and EURATEX, while others are dedicated to sustainable or digital fashion, like the Metaverse Fashion Council, Fashion Revolution, or Global Fashion Agenda.This way, fellow professionals can easily connect with the organizations of interest and find the most relevant insights collected in a single place! FashionUnited connects over one million fashion professionals a month, bringing more efficiency and transparency to the industry. The Fashion Federations Directory invites other stakeholders to actively participate in a network promoting transformation and accelerating sustainable growth in the global fashion industry. The Directory strengthens and expands the global B2B network FashionUnited has built over the past 20 years, creating a unique platform where fashion professionals, knowledge and resources are brought together in one place.
Source: fashionunited
In the fiscal year 2022 (FY22), India’s manufacturing exports reached USD 418 billion. These exports have grown quickly over the last two years, so they have reached this level. Even though India has the fifth-largest economy in the world and makes up 3.1% of the global GDP, its exports only make up 1.6% of global trade. This is due to a number of things, such as rising protectionism and de-globalization, a lack of basic infrastructure, and low market penetration in high-income countries. So, it tells India to work on speeding up Free Trade Agreements, lowering tariffs, and getting rid of bottlenecks on the supply side. This would help with export problems. The main industries that Indian exports are based on are Petroleum Products. It was a big part of India’s exports at a time when crude oil prices were going up because of the pandemic and getting worse because of the Russia-Ukraine war. India sends out oil products worth USD 55.5 billion, which is a huge increase of 150% from last year. Engineering Goods’ exports registered a 50% increase. At the moment, all MNC companies in India that make pumps, tools, carbides, air compressors, engines, and generators are trading at all-time highs and moving more production units to India. India sent out USD 35,3 billion worth of jewellery. In this year’s budget, the import duty on cut and polished diamonds was also lowered. The government’s push to meet the need for food around the world during the pandemic was good for agricultural exports. India’s rice exports are worth USD 9.65 billion, which is the most of any agricultural good. India’s exports of textiles and clothing, including handicrafts, were worth USD 44.4 billion, which was a 41% increase from the previous year. This sector is getting a big boost from government programmes like the Scheme for Integrated Textile Parks (SITP) and the Mega Integrated Textile Region and Apparel (MITRA) Park scheme. Further, India is the biggest supplier of generic drugs and the third largest producer of medicines by volume. India provides more than half of Africa’s generic drug needs, about 40% of generic drug needs in the United States, and 25% of all medicine in the United Kingdom. However, the problems with the growth of Indian exports were rising protectionism and de-globalization: Countries around the world are moving toward protectionist trade policies because the Russia-Ukraine War has upset the global political order and the supply chain is being used to make weapons. This is reducing India’s ability to export. Lack of Basic Infrastructure: India’s manufacturing sector doesn’t have enough manufacturing hubs, and internet services and transportation are expensive compared to those in developed countries. This is a big turnoff for industries. Power insufficiency is another problem. India spends about 0.7% of its GDP on research and development. This means that India isn’t coming up with many new ideas. This makes it hard for the manufacturing sector to change, improve, and grow. Our exports have a high level of diversification and a low level of specialisation. This means that India’s exports are spread out over many products and partners, making them less competitive than those of other countries. Exports can’t be the only source of growth in an era of deglobalization and slowing growth. India can also look into developing programmes with other countries in areas like space, semiconductors, and solar energy to boost its growth prospects in the medium term. The economic policy should also try to promote export dynamism, product specialisation, and product diversification through Dedicated Export Corridors to offer the best service in the world and move the Indian economy toward long-term, steady economic growth. Indian entrepreneurs can be encouraged to sign joint venture agreements abroad so that their products can be exported to developing countries where the political climate is good and there is a demand for Indian products. MSMEs make up 29% of the GDP and 40% of international trade. This makes them important players in reaching ambitious export goals. India needs to connect Special Economic Zones to the MSME sector and give small businesses incentives. Indian exporters will be able to compete on the global market only if they have a strong infrastructure network with warehouses, ports, testing labs, certification centres, etc. It also needs to change to more modern ways of doing business, which can be done by digitising the export process. Both time and money will be saved.
Source: The north lines
The European Union’s seasonally adjusted industrial production fell by 1.9 per cent in October 2022, while euro area’s industrial production fell by 2 per cent, compared to September 2022, as per the estimates from Eurostat, the statistical office of the EU. On a year-on-year (YoY) basis, industrial production increased 3.7 per cent in the EU and 3.4 per cent in the euro area. In September 2022, industrial production increased by 0.8 per cent in the euro area and by 0.7 per cent in the EU. In the euro area in October 2022, compared with September 2022, production of energy fell by 3.9 per cent and intermediate goods by 1.3 per cent, while production of non-durable consumer goods rose by 0.3 per cent, according to the data by Eurostat. In the EU, production of energy fell by 3.5 per cent and intermediate goods by 1.2 per cent, while production of non-durable consumer goods rose by 0.2 per cent. Among member states for which data are available, the largest monthly decreases were registered in Ireland (10.7 per cent), Luxembourg (4.4 per cent), and Czechia (3.7 per cent). Increases were observed in Slovakia (1.3 per cent), Lithuania (1.1 per cent), Greece (0.5 per cent), and Austria (0.2 per cent). In the euro area in October 2022, compared with October 2021, production of non-durable consumer goods rose by 10.5 per cent, while production of intermediate goods fell by 2.9 per cent as well as energy by 8.7 per cent. In the EU, production of non-durable consumer goods rose by 11.4 per cent, while production of intermediate goods fell by 2.5 per cent as well as energy by 9 per cent. Among member states, the highest annual increases were registered in Ireland (53.2 per cent), Denmark (10.7 per cent), and Malta (7.2 per cent). The largest decreases were observed in Estonia (5.8 per cent), Luxembourg (3.8 per cent), and Belgium (2.8 per cent). The euro area (EA19) includes Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia, and Finland. The European Union (EU27) includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, and Sweden.
Source: Fibre2Fashion
The California Air Resources Board (CARB) recently approved the final proposed 2022 Scoping Plan, a road map to address climate change that cuts greenhouse gas emissions by 85 per cent and achieves carbon neutrality in 2045. The plan’s transition away from fossil fuels will benefit residents of the state disproportionately burdened by transport-induced pollution. By 2045, this economy-wide shift away from fossil fuels seeks to reduce fossil fuel consumption (liquid petroleum) to less than one-tenth of what we use today—a 94 per cent reduction in demand, cut greenhouse gas emissions by 85 per cent below 1990 levels, reduce smog-forming air pollution by 71 per cent, create 4 million new jobs and save Californians $200 billion in health costs due to pollution in 2045. CARB is the lead agency for climate change programmes and oversees all air pollution control efforts in California to attain and maintain health-based air quality standards. Its mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The plan also responds to concerns raised by leaders from those communities, including members of the Environmental Justice Advisory Committee (EJAC). The 2022 Scoping Plan includes a commitment to build no new fossil gas-fired power plants and increases support for mass transit. It also calls for a multi-agency process to ensure that the transition away from oil extraction and refining is equitable. “Implementing this plan will achieve deep decarbonization of our entire economy, protect public health, provide a solid foundation for continued economic growth, and drastically reduce the state’s dependence on fossil fuel combustion. It will clear the air in our hardest hit communities,” said CARB chair Liane Randolph in a release. The plan also includes actions to capture and store carbon through the state’s natural and working lands (including its forests), and calls upon a variety of mechanical approaches to remove and safely store carbon dioxide to address the remaining 15 per cent of greenhouse gas emissions that will remain in 2045 after the stringent direct reductions from every regulated source.
Source: Fibre2Fashion
Italy’s calendar adjusted industrial production index decreased by 1.6 per cent year-on-year (YoY) in October 2022 (calendar working days in October 2022 being the same as in October 2021). The country’s unadjusted industrial production index decreased by 1.6 per cent YoY for the same period, as per the Italian National Institute of Statistics (Istat). In October 2022, the seasonally adjusted industrial production index of Italy decreased by 1.0 per cent compared with the previous month. The change of the average of the last three months with respect to the previous three months was +0.3 per cent, according to a press release by Istat. The index measures the monthly evolution of the volume of industrial production. From January 2022, the indices are calculated as annual chain-linked indices instead of fixed base indices. The weighting reference is now year 2021 while the reference base is still the year 2015.
Source: Fibre2Fashion
Vietnam’s retail sales increased 20.5 per cent year-on-year during the period from January to November 2022, according to a report by Hongkong and Shanghai Banking Corporation (HSBC). The country’s domestic demand brought some relief amid weakening external factors. The report further suggested that retail chains opened new stores this year. Inflation began to soar at the end of the second quarter. Last month the country’s headline inflation was 4.4 per cent while core inflation was close to 5 per cent due to a rapid recovery in demand, Vietnamese media reports said quoting the HSBC report. Retail sales remained a key factor for growth in November 2022, as total retail sales of consumer goods grew by 17.5 per cent over November 2021. While many factories laid off, furloughed, or gave workers an early Tet (Lunar New Year holidays), service businesses such as retail expanded their operations. Rising inflation is a concerning matter and could increase in the next few quarters, forcing the central bank to take monetary measures, according to HSBC.
Source: Fibre2Fashion
