Uttar Pradesh govt raises investment summit target by 70% to Rs 17 trillion
Indian rupee depreciates 11% in 2022; worst performance since 2013
INTERNATIONAL
BKS Textiles to launch sustainable bedding brand at Heimtextil 2023
China’s apparel import values shrink to US $ 9.76 billion in Jan.-Nov. ’22
Recession will hit a third of the global economy in 2023, warns IMF chief Kristalina Georgieva
A year of investment for garments and textiles
China's textiles & apparel exports at $297 bn in Jan-Nov 2022
China's waterway freight volume jumps 4.3% YoY in Jan-Nov 2022
Croatia joins eurozone & Schengen area, adopts euro as currency
NATIONAL
India has extended the anti-dumping duty (ADD) on various jute products imported from Bangladesh and Nepal. Bangladesh had urged the Indian government not to accept recommendations for extension, while the Indian industry was lobbying to ensure the duty comes into effect. The finance ministry issued a notification issued on Friday to extend ADD for 5 years. The duty is applicable in the range of $6.3 to $351.72 per MT. The notification said, “The anti-dumping duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.” Indian jute industry was lobbying relentlessly with the government to protect the domestic sector from cheaper imports from the neighbouring countries. India’s Directorate General of Trade Remedies recommended in October this year that the Indian finance ministry should continue the ADD on jute products from Bangladesh and Nepal. During a recent visit to India, Bangladesh commerce minister Tipu Munshi had requested his Indian counterpart Piyush Goyal not to extend the tenure of ADD on the import of jute and jute goods from his country that was imposed on January 5, 2017 and was supposed to end on December 31, 2022.
Source: Fibre2Fashion
The Union Commerce and Industry Minister, Shri Piyush Goyal, reviewed progress of PM GatiShakti today at Vanijya Bhawan, New Delhi with senior officials from 8 infrastructure Ministries. Since its launch in October 2021, infrastructure projects approved by the Cabinet have either been completed or are already under implementation. The Network Planning Group (NPG), under the PM GatiShakti institutional structure, has held 41 meetings in the last one year. 61 project proposals pertaining to road, railways, natural gas, ports and urban infrastructure have been evaluated in terms of optimising PM GatiShakti principles and recommended by NPG for implementation in the coming years. Shri Goyal appreciated the progress made by Central Ministries and States, and emphasized that PM GatiShakti needs to play a proactive role for planning and in sound decision making. Ministries were requested to identify attributes for data layers which will further enhance the NMP Platform. Ministries have developed necessary mechanisms for validation and standardisation of data on their respective portals. This is helping in optimum planning and sound decision making across all layers of governance. It was informed that 12 Social Sector Ministries namely MoHUA, D/o of School Education & Literacy, D/o Higher Education, M/o Women & Child Development, M/o Tribal Affairs, M/o Panchayati Raj, M/o Health and Family Welfare, D/o Sports, D/o of Youth Affair and Sports, M/o Rural Development, M/o Culture and D/o of Posts are in advanced stages of data integration in the NMP Platform With India now holding the G20 presidency 2023, creating a resilient and efficient logistics ecosystem and promoting seamless multimodal international transportation and transit is being put on international priority. As part of the Trade and Investment Working Group (TIWG), “Logistics for Trade'' has been identified as one of the priority issues. During the meeting various ministries made presentations and deliberated their progress and achievements under PM GatiShakti’s whole of the government approach. The value addition brought to planning of infrastructure Ministries was discussed and best practices identified and showcased. The Ministries that participated in the review were- M/o Railways, MoRTH, MoPSW, MoCA, Power, DoT, MoPNG, MNRE, Textile and Steel.
Source: PIB
Buoyed by the response to the recent roadshows in foreign shores, the Uttar Pradesh (UP) government has increased the investment target for its Global Investors Summit (GIS) by 70 per cent to Rs 17 trillion. Earlier, the Yogi Adityanath-led government had targeted a net private investment of Rs 10 trillion at the scheduled February 10-12, 2023, summit in Lucknow. The string of roadshows in December across 16 countries fetched the state investment proposals of over Rs 7 trillion. “The previous investment targets of all the departments have also been revised,” a government spokesperson said. The departments of IT & electronics, MSME, energy, housing, and the Greater Noida authority have been assigned investment targets of Rs 1 trillion each. The other departments whose investment targets have been upgraded include textile, civil aviation, PWD, urban development, etc. The UP State Industrial Development Authority (UPSIDA) has also been mandated to attract investment of Rs 1 trillion from entrepreneurs looking to set up industrial units in the state. The UPSIDA has already netted investment proposals worth Rs 80,000 crore in the run up to the big-ticket event, which is likely to be inaugurated by Prime Minister Narendra Modi. The GIS is billed to play a vital role in propelling UP as a trillion-dollar economy in the next five years, as envisaged by the Yogi government. “The state government is making all efforts to achieve the target,” said UPSIDA CEO Mayur Maheshwari, adding investors had shown interest in the sectors of food processing, textile, automobile, private industrial park, warehousing, paper industry, medical, biofuel, toys, data centre, IT, electronics etc. Meanwhile, the UPSIDA has prepared an inventory of about 15,000 acres of industrial land for allotment to industries. Among the memorandums of understanding (MoUs) already signed by the UPSIDA, a private industrial park will come up in Ghaziabad at an investment of Rs 10,000 crore and provide jobs to 10,000 people. Similarly, 1,000 people will get employment in a logistics and warehouse park in Gautam Budh Nagar (Noida) to be developed by the Mobility Infrastructure Group with an investment of Rs 8,000 crore. The Mega Leather Cluster Development in Kanpur will provide employment to 200,000 people with an investment of Rs 6,000 crore.
Source: Business-Standard
The Indian rupee depreciated over 11 per cent last year against the US dollar, its poorest performance since 2013 and the worst among Asian currencies. The rupee closed the year at 82.61 to the US dollar, down from 74.29 at end of 2021 as the latter headed for its biggest yearly gain since 2015 propelled by the US Federal Reserve's aggressive monetary policy. The performance, however, was better than some other global currencies like the British pound and Turkish lira. According to the Reserve Bank of India’s Financial Stability Report, since mid-October, the rupee recovered from the bouts of volatility experienced in the earlier part of the year and has been trading close to its long term trend, a news agency reported. The outbreak of the Russia-Ukraine war in February induced the volatility in the currency market last year as it disrupted global supply chains, fuelling inflation as well as inflationary expectations across the world. High global crude oil prices too weighed on the rupee. Due to aggressive rate hike by central banks globally, foreign investors pulled out a net ₹1.22 lakh crore from the Indian equity markets and over ₹17,000 crore from the debt markets last year. Imported inflation turned a key challenge for Indian policymakers as a strong dollar weighed on India's trade. Though the Indian rupee crossed 83 to a greenback last year, there is hope in the New Year, with indications that the US Federal Reserve will further reduce the intensity of rate hikes in 2023. Global investors too have not lost confidence in Indian markets, and foreign institutional investors’ inflows have started improving. In addition, declining global energy prices, strong fundamentals of the Indian economy and inflation coming back to the Reserve Bank's comfort level will help the rupee regain some strength against the US dollar, the agency report added.
Source: Fibre2Fashion
INTERNATIONAL
As the need of the hour is sustainability and circular economy, BKS Textiles is all set to launch a sustainable bedding brand called ‘Ekoscious’ which comprises six collections made using different sustainable fibres BKS Textiles has emerged as one of the most instantly recognised names in the home textiles segment. The company with its headquarters at Palladam near Coimbatore works with leading home textile brands in the US, UK, Australia, Canada and Japan. The company is all set to launch its ‘Ekoscious’ bedding brand at Heimtextil 2023. Beginning an exclusive interaction with her views on how 2022 has been for the home textile industry globally, Dr. Sudha Anand, Director, BKS Textiles, said: “Overall, 2022 has been a slow year for us and the textile industry. The volume of purchase was low because of increased inventory with the retailers and changes in consumer priorities and spending. Increased energy costs, inflation and increased food prices have resulted in low priority and spending towards home improvement goods.”
New Launch
The company has lined up an exciting launch for the forthcoming Heimtextil 2023 trade show. “As the need of the hour is sustainability and circular economy, we at BKS Textiles are launching our sustainable bedding brand ‘Ekoscious’ which comprises six collections made using different sustainable fibres like traceable organic cotton, linen, hemp, Tencel, bamboo and recycled polyester, ” Dr. Anand informed. Describing the highlights and special features of the collections, she elaborated: “The six collections that form part of the Ekoscious range are made using low impact fibre and incorporate tenets of sustainability and the circular economy. The collections are well-designed as per the seasonal trends and colours.” “We believe these collections will be well-received at the show as they encompass sustainability, novelty and functionality,” she added. Today, the word sustainability is an overused terminology in textile, to the extent that those companies who are genuinely offering sustainable products don’t get the right attention. Explaining how the products that BKS Textiles offers are the most sustainable and how the company differentiates itself from others in a crowded marketplace Dr. Anand explained: “At BKS Textiles we walk the talk and deliver what we promise. Sustainable textile in its truest sense means a product manufactured from fibres, chemicals and processes that have minimum to zero adverse effect on the environment and products that are biodegradable or recyclable.” “We ensure that the sustainable textiles that we make match the above requirements and we at BKS Textiles have an ‘AWE’ inspiring sustainability roadmap. This includes:
• A: Afforestation. So far we have planted around 7,000 trees in and around our premises. We intend to add another 2,000 trees by 2025.
• W: Women empowerment. Currently we have 50% women employees and we are intending to increase our women workforce to 65% by 2025.
• E: Green energy. We have two windmills and 40% of our power requirement is fulfilled through these. We are intending to increase the renewable energy to 60% through solar energy by 2025.”
Growth Plans and Outlook
Speaking about the company’s manufacturing capacity and plans to invest in expanding capacity, Dr. Anand said: “Bed linen is our main product category and currently we have the capacity to produce 5,000 sheet sets per day. We have started with other home textiles such as table and kitchen linens as well. We will keep increasing our sewing infrastructure to cater to the increasing demand in the future.” The world has been witnessing a lot of changes in the global geo-political alignments in the last couple of years. Sharing her views on whether this is helping the Indian home textile industry in terms of more global brands and retailers looking to source from India, Dr. Anand observed: “At present, we export to the US, UK and Europe. We believe that 2023 will be a tough year because of fear of recession and there will be lot of changes in the global economy as well. Nevertheless, Indian textiles have a bright future as we will be the preferred destination for volume cotton goods, not to forget the free trade agreements in place and under discussion. Export of textile looks very promising as of now.”
Source: Indian textile magazine
According to General Administration of Customs China (GACC), the country has witnessed a decline of 2.90 per cent on Y-o-Y basis in its apparel imports during January to November ’22 period. China imported US $ 9.76 billion worth of apparel in the first 11-month period of 2022 as compared to US $ 10.05 billion in the same period of 2021. Particularly in November ’22, Chinese apparel imports saw a substantial drop of over 16 per cent to US $ 908.52 million, as per an analysis done by Team Apparel Resources. The drop in apparel imports have been attributed to closure of markets due to lockdowns in China because of which retail businesses have suffered! On the other hand, textile imports of the country plummeted massively by 23 per cent on Y-o-Y basis to US $ 11.08 billion; while the de-growth in November alone was 36.30 per cent.
Source: Apparel resources
A third of the will be in recession this year, the has said, and warned that 2023 will be "tougher" than last year as the US, EU and China will see their economies slow down. Kristalina Georgieva, the chief of the International Monetary Fund (IMF) made these grim assertions on Sunday during a CBS news programme "Face the Nation." It comes at a time when the ongoing conflict in Ukraine shows no signs of abating after more than 10 months, with spiralling inflation, higher interest rates and the surge in coronavirus infections in China fuelled by the Omicron variant. "We expect one-third of the world economy to be in recession," Georgieva said on the news programme. The year 2023 will be tougher than last year because the economies of the US, the EU and China will slow down, she a recession for hundreds of millions of people," she explained. In October last year, the IMF trimmed its growth forecast for 2023. "Global growth is forecast to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the Covid-19 pandemic," it said. China has scrapped its zero Covid policy and opened its economy following a wave of anti-government protests in the country. "For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative," she added.
Source: Times of India
The readymade garments and textile sector of Bangladesh will see a year of possibilities in 2023 despite some uncertainties such as the war and recession. There will be changes in the global supply chain. Buyers from western countries, especially from the USA, have started to shift their orders from China as part of reducing dependency on Beijing for geopolitical reasons. This trend will continue in the upcoming year. In this case, Bangladesh can be a good alternative for western buyers. The western countries can also move out orders from Vietnam and Bangladesh will have a chance to grab them too.Meanwhile, in the last few months, Bangladesh has received orders from the United States at a higher rate compared to two major suppliers- China and Vietnam. Bangladesh's garments exports in the USA have seen 54% growth at the beginning of the current year. Besides, China's moving towards high-tech industry and the latest coronavirus surge in that country can play big roles in diverting RMG orders to Bangladesh. For these reasons, I think Bangladesh's apparel export growth in 2023 will not slow down compared to 2022. Rather, it may increase. The next year will be the year of investment in the backward and forward linkage industry of the apparel sector for the years to come. We have to prepare for the future. That is why 2023 should be a busy year for entrepreneurs in this sector. We should look for future possibilities. The DBL Group is also working in this regard and planning new investments in the sector. In 2004, there was much speculation about export growth while the quota system on garments exports was lifted. But those who invested gained a good profit. Many world-famous commodity traders are planning to open warehouses in Bangladesh. If one company opens a warehouse in this country, others will follow. As a result, Bangladesh is going to have good prospects in the coming years. We have to be involved in long-term planning. Our buyers have confidence in Bangladeshi suppliers and new buyers are also coming. The DBL Group is also getting new buyers. Outerwear, sportswear, lingerie and cotton-based high-end products have good export potential. We must be proactive to grasp these possibilities. However, policy support from the government will also be required. Especially, the industry needs energy support, an investment-friendly environment, policy reform, upgraded logistics and corporate governance etc. I visited South Korea last October and saw how a country can support its industries. They provide support to the industrial sector according to demand. They have separate cells to support the textile industry and they regularly communicate with businessmen and entrepreneurs. The government in Bangladesh needs to reform the policy for economic zones. It is also important to modernise the customs and port activities in the country. We need trained manpower with technical knowledge. No one will invest here considering the labour costs as labour cost is nothing nowadays. We need to work closely to coordinate the industry, the policymakers and the academia in line with the demand of the industry. The DBL Group has prioritised creating skilled manpower and we are doing so within our capacity.
Source: Tbs News
China’s exports of textiles, apparel and clothing accessories increased to $297.629 billion in the first eleven months of the current year, registering a growth of 4.57 per cent year-on-year. The latest monthly data released by the General Administration of Customs of China shows that the country’s garment exports grew by 4.3 per cent in the same period. Garments and clothing accessories exports reached $160.703 billion in the first eleven months, which was 4.3 per cent higher than the same period of last year. China’s textile exports, including yarn, fabrics, and others, registered a growth of 4.7 per cent year-on-year and the shipment reached $136.926 billion in January-November 2022. Textile and apparel exports during November 2022 amounted to $24.385 billion. Out of this, textile, yarn, and articles exports earned $11.266 billion, while garments and clothing accessories fetched $13.119 billion in November this year, as per the data.
Source: Fibre2Fashion
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China’s waterway cargo transport increased at a steady rate from January to November 2022, showing a 4.3 per cent year-on-year (YoY) rise in total freight volume. In just November 2022, the nation’s waterways handled cargo up to 760 million tonnes, according to data from the country’s ministry of transport. Moreover, about 7.8 billion tonnes of cargo was carried via waterways in China during the first 11 months of 2022. During the period, figures from China’s ministry of transport showed that northeast China’s Liaoning province saw 26.8 per cent YoY growth followed by central China’s Hubei province and south China’s Hainan province, as per various Chinese media reports.
Source: Fibre2Fashion
Croatia has become the latest country to join the eurozone and Schengen area. The country has adopted euro as its currency and has started circulating euro banknotes and coins from yesterday, i.e., January 1, 2023, bringing the number of European Union (EU) member states using the single European currency to 20. Croatia’s national bank Hrvatska narodna banka (HNB) has also joined the Eurosystem. HNB also becomes a full member of the Single Supervisory Mechanism, although the country has been part of the close cooperation framework since October 2020, European Central Bank (ECB) said in a press release. The euro area’s central banking system comprises the ECB and the national central banks of those countries whose currency is the euro. As such, the ECB is currently responsible for directly supervising five significant institutions in the country and overseeing 16 less significant institutions there. As part of its supervisory tasks, the ECB is also responsible for licensing banks and assessing the buyers of qualifying holdings in all banks. HNB already has a representative on the ECB’s supervisory board. The euro area’s central banking system comprises the ECB and the national central banks of those countries whose currency is the euro. Hrvatska narodna banka has paid the remainder of its contribution to the capital of the ECB and transferred its contribution to the ECB’s foreign reserve assets. Croatian counterparties of the Eurosystem will be able to participate in ECB open market operations announced after January 1, 2023. Croatia joining the euro area as its 20th member also means that the new system of rotating voting rights in the ECB’s Governing Council comes into force as of January 1, 2023, with the rights rotating according to a calendar. “From now on, internal borders can be crossed freely, without controls, like here at Bregana. And all the other crossing points at land with Slovenia and Hungary, at sea with Italy, and as of March, by air with all other Schengen States. No more checks, no more passport control, no more queues, just people crossing smoothly, as we can see right behind us. They can visit with the same Schengen visa as they use to travel to all other Schengen countries. People will be able to travel freely, business will be unhindered by checks,” said Ursula Gertrud von der Leyen, president of the European Commission.
Source: Fibre2Fashion
