Textile industry welcomes increase in RoDTEP rates
MP Is Emerging As An Economic Tiger, Says Piyush Goyal
India-US Trade Policy Forum to boost bilateral trade and investment
Skill gaps, rise of gig economy key topics at G-20 EWG meet next month
India's poly spun yarn prices steady; finer counts to remain in demand
Tamil Nadu State Government forms committee to suggest minimum wages for textile mill workers
Textile sector needs to work hard for sizable share post Ind-Aus ECTA
Demand for dumping duty on viscose staple fibre
INTERNATIONAL
Could Fast Fashion Tax be a future solution to the industry’s waste problems?
R&B Denims plans major expansion, modernisation
New opportunities for industrial development
China's GDP expected to grow 4.3% in 2023: World Bank
Netherlands' CPI jumps 9.6% YoY in Dec 2022; clothing 12.3% costlier
NATIONAL
The textile and clothing industry has welcomed the revised rates notified by the Ministry of Commerce under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for 65 HS codes in the textile and apparel sector. T. Rajkumar, chairman of Confederation of Indian Textile Industry, said in a statement that the implementation of the committee report would boost export of items such as yarn and fabric of polyester and viscose, denim fabric, knitted fabric of cotton, etc. The RoDTEP has been one of the most important export promotion schemes that aims to refund duties, taxes, and levies borne on the exported product at the Central, State, and local level, including prior-stage cumulative indirect taxes on goods and services, he said. Chairman of Confederation of Indian Textile Industry Ravi Sam said in a press release that the rates have been enhanced for several products including denim, polyester staple fibre spun yarn. The rate and value cap for viscose rayon spun yarn has gone up from 0.9 % to 2.5 % with a value cap of ₹6 a kg. He has also said that RoDTEP for woven fabrics of artificial staple fibre has been increased from 1.2% to 2.5%.Mr. Ravi Sam has stated that the enhanced RoDTEP rates would boost the exports and align with the Production Linked Incentive Scheme announced by the Government thereby enhancing the global competitiveness of Indian textiles and clothing products.
Source: The Hindu
Surat Gujarat India, January 11 Rachna Shah, the government of Indias textile secretary, had a visit to the Man Made Textiles Research Association MANTRA facilities on Ring Road and emphasised the importance of establishing research in technical textiles, with a focus on Agro Textiles. Indias textile secretary Rachna Shah took a special interest in MANTRAs Centre of Excellence for Technical Textiles, said Rajnikant Bachkaniwala, president of MANTRA. Surat (Gujarat) [India], January 11: Rachna Shah, the government of India's textile secretary, had a visit to the Man Made Textiles Research Association (MANTRA) facilities on Ring Road and emphasised the importance of establishing research in technical textiles, with a focus on Agro Textiles. Rachna Shah, India's textile secretary, accompanied by Textile Commissioner Roop Rashi Mahapatra, inspected the infrastructure at MANTRA, including the laboratory and machinery. Shah praised the infrastructural facilities and the textile experts' research. ''India's textile secretary Rachna Shah took a special interest in MANTRA's Centre of Excellence for Technical Textiles,'' said Rajnikant Bachkaniwala, president of MANTRA. She gathered extensive information on non-woven textile machinery, fabrics, and applications.'' ''The textile secretary closely observed the coating and lamination technology at MANTRA, as well as the samples prepared using cutting-edge technology,'' Bachkaniwala continued. MANTRA scientists gave a detailed presentation on the cutting-edge 'Plasma Technology' machine installed at MANTRA. The textile secretary was particularly drawn to MANTRA's Technical Textiles laboratory and its testing equipment. She praised MANTRA's efforts in establishing a testing laboratory for face masks and PPE kits at the centre. Dr. PP Raichurkar, Director of MANTRA, and MANTRA President Rajnikant Bachkaniwala gave a detailed presentation on MANTRA's textile sector activities. Bachkaniwala urged the textile secretary to convene all Textile Research Associations (TRAs) on a single platform to discuss and collaborate on textile industry research. Rachna Shah, Textile Secretary, was impressed by the information provided by the MANTRA management and advised them to prioritise research in Technical Textiles, with a particular emphasis on Agro Textiles. During the visit of India's textile secretary, MANTRA director Dr. PP Raichurkar, MANTRA President Rajnikant Bachkaniwala, Secretary Prafull Gandhi, and council members were present.
Source: Devdiscourse
Speaking about the numerous investment opportunities in Madhya Pradesh at the MP Global Investors Summit, Goyal said it has emerged as the ideal investment destination. It has ample land, infrastructure, skilled resources and offers massive opportunities in agriculture, food processing, pharmaceuticals, automobiles, tourism, textiles and renewable Energy Union Minister for Commerce and Industry Piyush Goyal today highlighted Madhya Pradesh as an ideal investment destination and called upon investors from across the world to become partners in the progress and growth of MP. Goyal virtually addressed the Madhya Pradesh Global Investors Summit 2023 at its inaugural day today. “Central location, ample land, infrastructure and skilled resources make MP an ideal investment destination,” Goyal said. Talking about the summit, the union minister said that this summit offers an opportunity to the industry to participate in the vibrant future of India. Speaking about the numerous investment opportunities in Madhya Pradesh, Goyal said it has emerged as the ideal investment destination. It has ample land, infrastructure, skilled resources and offers massive opportunities in agriculture, food processing, pharmaceuticals, automobiles, tourism, textiles and renewable Energy. He mentioned that the Gross State Domestic Product of MP grew by nearly 20 per cent last year. Goyal expressed confidence that the Green hydrogen Mission launched by PM, combined with support of Madhya Pradesh government, will help in bringing huge investments in several sectors particularly in green hydrogen and renewable energy. Goyal also mentioned that there will be an upward curve for MP's textile sector, which contributes 24 per cent of organic cotton production in the world. The union ministry further said that the Prime Minister Narendra Modi has always focused on encouraging the development and economic growth in states, thus providing huge opportunities to the people in the remotest parts of India. He said PM Modi believes that states will be the strong pillars to support developed India, a commitment that the entire nation has taken along with PM on 15 August 2022, as the nation celebrated ‘Azadi Ka Amrit Mahotsav’ on 75 years of India's independence. Referring to PM’s opening address at the Summit wherein he spoke about various initiatives of the centre like PM Gati Shakti, National Infrastructure Master Plan and Digital India, Goyal said all these have been possible under the visionary leadership of PM Narendra Modi. Citing examples of One Nation, One Tax, IBC, One Nation One Grid, he said the government is developing infrastructure like never before. Stating that MP is emerging as an economic tiger, he hoped that MP will continue to grow at the speed of cheetah which were released in Kuno National Park by PM some months ago. He exuded confidence that MP will further accelerate the country's economy by attracting industries with newer opportunities.
Source: Business world
India and the US are natural allies with shared values in terms of their political ideology based on democratic principles, India being the world’s largest and the US being its oldest functional democracy. The two also have fair, equitable and independent judiciary systems that rely upon principles of non-discrimination on the grounds of region and religion. This makes India and the US mutually dependable strategic partners at various international forums despite several differences primarily due to their divergent national interests. Since 2013-14, the US has consistently been India’s top export destination. In 2021-22, the US, with $76 billion, accounted for over 18 per cent of India’s total exports – much ahead of the United Arab Emirates (UAE), $28 billion (6.6 per cent), and China, $21 billion (3.8 per cent). During April-November 2022, India’s exports to the US grew at 8.3 per cent to $53 billion from $50 billion in April-November 2021, whereas its exports to China declined by 36.8 per cent during the same period. The US is also the biggest FDI investor in India in terms of equity, as per the Reserve Bank of India’s (RBI’s) latest FDI data, with Rs 8.1 crore, accounting for 16.9 per cent share in 2022. The US accounted for the highest inward remittances with a share of 23.4 per cent to India, as per the RBI, leaving behind the UAE with a share of 18 per cent in 2021. As India remains the world’s top recipient of foreign inward remittances, which are expected to touch $100 billion in 2022, the transformational shift to the US from the Gulf countries reveals the rise of India’s high-skilled manpower.
India upbeat on trade policy reforms
India’s growing economic resilience in recent years and its stellar economic performance as the world’s fastest growing large economy at 6.9 per cent amidst global economic woes has transformed it into a strategically significant country in the comity of nations. The post-Covid disruptions of international supply chains and the recent economic slowdown in China emanating from its zero-Covid policy and bilateral US-China tensions over Taiwan necessitated the US to explore alternative markets for its goods, countries for sourcing its import requirements and investment destinations for its companies to expand internationally. Given the size of its domestic market and demographic dividend, India is poised to emerge as the dominant economic superpower in the coming years. While negotiating with US Trade Representative Katherine Tai at the forthcoming India-US Trade Policy Forum (TPF), Indian Commerce Minister Piyush Goyal seems upbeat about the country’s growing economic resilience and transformational policy measures and institutional mechanism to boost exports with an unprecedented 45 per cent growth over the previous year, taking India’s exports to a record level of $422 billion in 2021-22. The India-US TPF, the leading bilateral institutional mechanism to discuss and resolve issues related to trade and investment, is scheduled for January 11 in Washington.
Key issues for bilateral negotiations
The US negotiators are extremely concerned about their burgeoning imports and trade deficit, which went up from $798 billion in 2016 to $1.2 trillion in 2021. Indeed, the total US exports grew from $1.547 trillion in 2017 at 1 per cent to $1.753 trillion in 2021, whereas its imports rapidly rose at 3 per cent from $2.406 trillion to $2.937 trillion during the same period. Therefore, American negotiators, in their relentless crusade to penetrate world markets, are not only persuading countries, especially emerging economies, to open up but also to reduce import duties, if not provide duty-free access to US goods. The US trade deficit with India grew significantly from $24.9 billion in 2017 to $36.9 billion in 2022, sending American negotiators looking for ways to penetrate the Indian market. India consistently has a positive trade balance with the US – during April-November 2022, it was $19 billion. The US had trade deficit with India in 2021 for medicaments ($8.5 billion), polished diamonds ($5.7 billion), jewellery ($3.2 billion), petroleum products ($3 billion), bedsheets and linens ($2.7 billion), crustaceans and other marine products ($2.7 billion), motor vehicles ($1.4 billion), precious and semi-precious stones ($988 million) etc, whereas it has trade surplus in supplying crude petroleum ($9.5 billion), petroleum gas ($1.8 billion), coal ($1.3 billion), gold jewellery ($1.3 billion), nuts ($908 million), acrylic hydrocarbon ($822 million) etc. India is the world’s largest importer of almonds with a 59 per cent share, and the US is its largest supplier, accounting for 87 per cent share at $749 million in 2021. Besides this, there are non-agricultural items such as saturated acyclic hydrocarbons worth $591 million (84 per cent share) and denatured ethyl alcohol worth $276 million (88 per cent share). The declining industrial activity in the US – as revealed by the deteriorating Manufacturing Purchase Managers’ Index (PMI), from 57.5 in May 2022 to 46.2 in December 2022 – vis-a-vis India’s robust PMI growth from 54.6 to 57.8 during the same period is a matter of growing concern among American policymakers and negotiators. The US is extremely keen to expand its market in India, especially for its agricultural products, such as dairy, apples, walnuts, spirits and alcoholic beverages, besides manufactured and technology-intensive goods such as defence equipment, aircrafts, automobiles and services. Moreover, India’s service sector has shown a significant rebound as India’s Services PMI rose to 58.5 in December 2022 from 56.4 in the previous month, while the US Services PMI declined significantly to 44.7. Interestingly, even in services trade, India’s trade surplus has consistently grown from $5.9 billion in 2019 to $10.3 billion in 2021. Even in the third quarter of 2022, India has a considerable surplus of $1.9 billion, which is of concern to American negotiators. The US is keen on getting India to further liberalise its market for its services sector in education, insurance, banking and non-banking financial services, technically known as ‘commercial presence’, Mode II under the GATS agreement, and digital commerce and payments under Mode I. India, meanwhile, needs to protect its domestic interests and find ways to ease the movement of its professionals to the US under mode IV of GATS. The ever evolving non-tariff barriers by the US, such as quality restrictions, environment, climate change, child and patent requirements, have long been an issue of concern, restraining the flow of Indian goods such as dairy and food products, besides others. Reinstating GSP (Generalised System of Preferences) benefits to India and revocation of the 25 per cent and 10 per cent duties imposed on certain steel and aluminium products, a matter already under WTO, are among the issues the US should consider. American negotiators need to be sensitive to India’s ground realities and recognise its resurgence as the global economic powerhouse, and curtail obstructions to realise the full potential of bilateral trade.
Source: Business-Standard
Rise of gig economy and platform workers, employment opportunities for youth, social security and breaking the barrier between skill training and higher education will be among the key themes of the upcoming G20 Employment Working Group (EWG) Meeting. Gig and platform workers have emerged as a new category and their numbers have risen, especially during the pandemic. However, the segment faces many challenges such as lack of proper working conditions and social security, said a source. Most countries also do not have the proper statistical capacities to measure and account for such new categories of workers, who now form a significant chunk of the working population of many countries, the source said.“All these are significant global issues. The question on how to universalise and make social security sustainable is a big challenge for many countries,” said a second person familiar with the development. Policy options such as social insurance schemes and tax-financed schemes to ensure sustainable financing of social security will also be discussed. “It is generally thought that formal employment and social security are contrary objectives. The discussions will focus on how to make the two complementary,” said the source. The meeting will also focus on measures to improve employment opportunities for the youth, against the backdrop of the global slowdown. Measuring skill gaps and bridging the barrier between higher education and skills will also be discussed. How to harmonise the skill assessment framework and a unified framework for skills at the G-20 level for improved mobility of skilled workers will also be taken up. The ministry of skill development and entrepreneurship and the ministry of education will also be roped in for this discussion. “Often, skills training and certification by one country is not accepted in another country,” said the source, adding that this is a major challenge for Indian workers. India assumed presidency of the G20 on December 1, 2022. This is the first meeting of the EWG. In all, the ministry of labour will organise four such meetings, which will culminate in the G20 Labour Ministers’ Meeting around September.
Source: Financial express
Polyester yarn prices remained stable in India today amid subdued demand. However, polyester-cotton yarn was sold at higher prices due to costlier natural fibre. Demand for polyester yarn of finer counts will rise as production of summer clothing picks up in the next few months. The polyester value chain will take longer to find the support it needs. Polyester yarn did not get any support from the increase in cotton yarn prices as market dynamics were different for both types of yarn, according to trade sources. However, finer counts of polyester yarn will stay in demand. Additionally, the recent rise in export orders supported market sentiments in general. “Overall sentiments were positive after recent trading activities in the entire textile value chain. Costlier cotton pushed yarn prices up. Polyester yarn will get support in the next 2-3 weeks,” Ashok Singhal, a trader from Ludhiana market, told Fibre2Fashion. Poly spun yarn prices remained steady, while PC yarn was sold higher by ₹2-5 per kg. Overall demand was better in the market. In Ludhiana, 30 count PC combed yarn (48/52) was sold at ₹212-220 per kg (GST inclusive), 30 count PC carded yarn (65/35) was priced at ₹185-190 per kg, 30 count poly spun yarn was sold at ₹153-160 per kg and recycled polyester fibre (PET bottle fibre) noted at ₹81-83 per kg, according to Fibre2Fashion’s market insight tool TexPro. In Surat, Gujarat, poly spun yarn was stable, but demand was better from the weaving industry. A trader from Surat market said that demand for PC and polyester yarn has improved. In this market, 30 count poly spun yarn was traded at ₹137-138 per kg (GST extra) and 40 count poly spun yarn at ₹153-154 per kg. Reliance Industries Limited has decreased the prices of purified terephthalic acid (PTA) and MELT for the current week. But monoethylene glycol (MEG) was kept unchanged. On Friday, RIL fixed the prices as: PTA at ₹77.70 per kg (-2.00), MEG at ₹55.90 per kg and MELT at ₹85.15 per kg (-1.72). RIL had increased the prices of PSF by ₹4 to ₹103 per kg for the current fortnight. North Indian cotton prices witnessed a mixed trend. Prices decreased in lower Rajasthan after a decline in ICE cotton, but cotton remained rangebound in other areas of north India. According to local traders, demand from spinners was limited but regular. Prices are likely to stay in the same range. Cotton arrival was estimated at 12,000 bales of 170 kg. The natural fibre was traded at ₹6,275-6,325 per maund in Punjab, ₹6,150-6,275 per maund in Haryana and ₹6,375-6,470 per maund in upper Rajasthan, and at ₹59,500-61,500 per candy of 356 kg in lower Rajasthan.
Source: Fibre2Fashion
The State Government of Tamil Nadu has formed a committee to give its views on fixing the minimum wages for workers coming within the ‘other than apprentice’ category in textile mills. The Department of Labour Welfare and Skill Development said, according to a November order, that the Government in 2007 decided to include ‘other than apprentice workers’ of textile mills under the Minimum Wages Act, 1948. Proposals were sent to the Government in 2021 and 2022 by the Labour Secretary to create a committee to fix minimum wages for these workers. Accepting this proposal, the Government has constituted this committee. Those ‘other than apprentice’ workers who are employed in weaving mills, open end mills, composite mills and spinning mills will come under the purview of this committee. Headed by the Additional Labour Commissioner, Coimbatore the committee will have five officials, six representatives from employers and six representatives of the trade unions.
Source: Apparel resources
During the final days of 2022, India and Australia entered into the Economic Cooperation and Trade Agreement (ECTA), which is expected to double the bilateral trade between the 2 countries to $50 billion in the next 5 years. But textile sector will need to go an extra mile to have a sizable share as its contribution is currently less than $1 billion. India exported apparel worth $254.267 million and home textiles worth $217.684 million to Australia in the first ten months of 2022. On the other hand, India imported cotton (HS Code 5201) worth $255.593 million from Australia, bringing the total trade to $727 million for the period under review. The total trade is unlikely to cross the $1 billion mark for 2022. In 2021, India exported apparel worth $273.552 million and home textiles worth $263.134 million to Australia, while cotton imports amounted to $66.011 million in the same period, according to Fibre2Fashion’s market insight tool TexPro. Australia was the second largest supplier of cotton to India with 18.55 per cent share in the latter’s total imports of $1,377.810 billion during January-October 2022. Cotton imports from Australia remained volatile in the previous years because of price dynamics. The cotton imports were at merely $6.352 million in 2020 and $33.068 million in 2019, as per TexPro.
Source: Fibre2Fashion
The Association of Man-made Fibre Industry of India has requested the finance ministry to accept the Directorate General of Trade Remedies (DGTR) recommendation to levy an anti-dumping duty on imports of viscose staple fibre (VSF), which is used in ready-made garments, home and industrial textiles. On December 19, DGTR recommended the duty due to large-scale dumping at below-cost prices by Chinese backed firms. The previous duty expired in August 2021 and there has been a fivefold increase in monthly VSF imports into India at predatory prices, the association said."India's FTAs with ASEAN nations allow for export of VSF to India at zero duty. The association has indicated to the finance minister that a Chinese backed player has set large VSF plants in Indonesia to flood the Indian market by taking advantage of the FTA," it said in a letter to the finance ministry.
Source: Economic times
INTERNATIONAL
Kuben Edwards is a South African-born entrepreneur who resides in Shoreditch, London. She is the CEO and founder of onezero8, a company that provides circular solutions for fashion waste. The female-led company is dedicated to solving the global challenges of sustainable fashion production. “We are in the business of helping companies to implement more effective recycling and waste-minimising processes,” explained Edwards. With a holistic by-nature approach at its core, I sat down with Edwards to talk about fashion’s waste and why it is essential to change the industry’s approach to the problem.
Ok, lets dive straight in. How can the fashion industry change what it offers.
Everyone has a different idea of what constitutes ‘change’ when it comes to what the fashion industry needs to do. I like to keep things simple. So how about we start with making it a must that fashion companies use not only better-quality fabric but also understand the processes of producing that material. Yes, this could make the product more expensive, but if we pay more, maybe we would be encouraged to treat our clothes better and wear them longer.
Many are of the opinion that the big companies are to blame for the majority of the industry’s problem, what do you think.
The big companies that control the fashion industry need to be held accountable because they are the same people running both fast fashion brands alongside their sustainable collections.
Pressured to present a greener image, most fast fashion brands have a side gig, that paints a picture of change even though they are still producing fast fashion products. I think this is because some of them see this type of ‘change’ as an opportunity to clean up their image and also make some money. This is why prominent companies are blamed, because they are expected to set the tone. Change needs to come from the top because if they lead by example, the result could be a domino effect that trickles down to the more smaller fashion companies who do not have the same clout to make the big changes.
Landfills are a big problem that no one seems to have a concrete solution to. What are your thoughts.
Landfills in some countries are like walking down a high street of waste. You will see labels like H&M, Marks & Spencer, GAP etc piled on top of each other. So here is a solution; let’s make sending our textile waste abroad illegal. Lets not make our waste be someone else’s problem. This move could force companies to invest in finding solutions for clothing waste, because if its on our doorstep, then pressure to act faster will increase, pushing the problem to the top of everyone’s political agenda.
Is giving textile waste a second life a long-term solution.
What is tragic is that we can utilise waste. Clothing waste is money that we readily throw away. I do not understand why we cannot see its value and change how we treat our clothes. It seems so obvious, yet nothing is being done that effectively confronts the problem head on. So let’s think bigger. Up-cycled clothing waste should not only be for clothes but also for lifestyle items. Let’s use it to create better living situations, i.e. working alongside social housing projects in the UK.
What would you do if you could click your fingers and enforce something that would bring about immediate change.
In the UK, sugar tax, alcohol tax and cigarette tax have become the norm. They are taxed because the products negatively affect one’s health and quality of life. Therefore there should be a fast fashion tax because the clothing waste impacts both our health and environment. The lesson here should be; if something badly affects the planet and people, it should be taxed and that money should be used to finance long term solutions to fix the problem.
Any last words.
We need good legislation for fast fashion to do better. First, we must start from the root of the problem and stay away from the cheap and fast mentality. I like the idea of creating a garment sorting solution in the UK that could help deal with clothing waste. Lastly, why are human rights still an issue in 2023? We need to have a standard global legislation that creates a new mindset that helps companies first take accountability and secondly have the tools to act and ensure that the way they do business is fair to people, planet and of course their profit. Simply put, if accountability is Robin, legislation needs to be Batman. Kuben Edward’s next stop will be Munich Fabric Start, where she will be partaking in a panel called: FUTURE MATERIALS: THE RACE FOR NEW TEXTILES, alongside Kirsi Terho (Infinited Fiber), Marianne Uddman (Trustrace) and Simon Angel (MUNICH FABRIC START).
The conversation will explore how textiles are getting a sustainability makeover thanks to recycled textiles, regeneratively farmed cotton and mushroom-based leather, while asking the question: are these materials worth the investment and the long-term commitments required to scale.
Source: Fashnerd
Textile company R&B Denims has announced done major expansion in with new Air jet Looms – Dobby Machines. The company in an exchange filing said that it has started to manufacture the prominent luxury level of Denim Fabric with Width of 85 inches. It is expected that the company will generate good margins from the current operating margins with this technology. At present, the company's clients include major brands such as Arvind, Killer, Lifestyle, Reliance Retail, etc. By adopting this new technology, the company said that it will be able to gain an advantage over its competitors, as it is not available to many Denim Manufacturers, which will provide the company with an advantage in serving both domestic as well as international consumers.The company had delivered steady performance in Q2FY23. Revenues from continuing operations stood at Rs 14711.5 lakhs, EBITDA at Rs 2337.32 lakhs. Profit after Tax from continuing business was Rs 1240.60 lakhs.Despite of the decrease in revenue from Q1, the company maintained profits by focusing on cost reduction, flexible working capital management and improving productivity and efficiencies. The company said that it expects to grow despite a challenging environment, as a result of its robust business model and its strategic ability to navigate through challenging times. The Denim Market is both impacted by domestic and export issues. Denim products are attracting more and more people regardless of age and gender and it is anticipated that the denim industry will grow at a rapid pace in the near future. The company said that it is imperative to invest in Research and Development to maintain its competitive advantage and consistently deliver value to stakeholders in order to enhance technological advancements and quality improvement. With the new machine installations, the company is expecting a significant increase in revenue and profitability in Q4 as a result of these installations.
Source: Zeebiz
On January 10, President Shavkat Mirziyoyev chaired a videoconference on the development of industry and the identification of additional reserves. Industry plays a very important role in the economy and employment. In recent years, 19 free economic zones and more than 400 small industrial zones have been created, 10 trillion UZS have been allocated for their infrastructure to create the necessary conditions for industries. $3 billion were directed to turn into “drivers” such industries as textiles, chemistry, building materials, leather, pharmaceutical, electrical industries. To provide the industry with raw materials, exploration work has been tripled, more than 600 new deposits have been discovered. As a result, over the past five years, the number of industrial enterprises has doubled to 100 thousand, and the volume of production has increased by 1.4 times. This has a positive effect on the development of regions. In particular, such new industries as building materials, automotive industry, food industry have appeared in Jizzakh. 220 construction materials projects have been launched, the share of this industry in the industry of the region has exceeded 20 percent. 19 major metalworking projects have been implemented in Samarkand, Syrdarya, Namangan and other regions. Products worth 3 trillion UZS were produced in 2022 in 54 new small industrial zones created in Namangan. Over the past three years, the volume of production in the chemical industry has increased 1.5 times, and exports – 2 times. However, in some regions the results do not match the possibilities. In particular, industrial growth in Navoi, Bukhara and Tashkent regions in 2022 was below expectations. In the Republic of Karakalpakstan, Jizzakh, Kashkadarya, Surkhandarya, Fergana and Khorezm regions, the level of yarn processing remains low. In Namangan, Samarkand and Navoi, the potential for the production of food, leather and footwear products and furniture is underused. In this regard, the meeting participants discussed measures to develop the industry, increase investment in the industry and use reserves. The Head of state stressed that the industry will be provided with new opportunities and additional financial resources. First of all, banking standards will be revised and additional resources will be allocated to commercial banks for 55 trillion UZS for lending to enterprises. This means an additional source of investment for an average of $20 million per district. The second possibility is that in 2023, 1.7 trillion UZS will be allocated for the infrastructure of industrial zones and large investment projects. The territory of the free economic zones “Gijduvon” and “Kokand” will also be expanded. Branches of “Urgut” free economic zone will be created in Karakalpakstan and Kashadarya. Third, starting in 2023, 60 districts of the fourth and fifth categories, whose economic development is lagging, will be provided with 27 types of tax incentives, subsidies and preferences. Fourth, preferences for manufacturers of carpets, home textiles, leather and jewelry. So, in 2023, an additional $300 million will be allocated for textile projects. Customs privileges for more than 200 types of imported raw materials for the leather and footwear industry will be extended for three years. Jewelers will have the opportunity to purchase raw materials at a discount, as well as tax, customs and banking benefits. The President emphasized the need for widely informing the population and entrepreneurs about these opportunities and increasing the number of projects at places. It was noted that 1,264 projects will be launched in the industrial zones. An important task was to ensure the launch of the 6th hydrometallurgical plant in Navoi region and the 3rd copper processing plant in Olmaliq, a modern foundry in Andijan region and an agricultural machinery cluster in Chirchik. Responsible officials were tasked with expanding industrial cooperation, implementing localization projects worth $6 billion, and timely launching about 3,000 projects included in regional investment programs. In general, it was noted that this year, using all the reserves, it is possible to increase industrial production by 14 percent. Heads of industries and hokims presented their plans and proposals on the issues discussed at the meeting.
Source: Einnews
China’s gross domestic product (GDP) is projected to grow by 4.3 per cent in 2023, 0.9 percentage point below previous forecasts, according to World Bank’s ‘Global Economic Prospects’ report. The downward revisions reflect COVID-related disruptions and protracted weakness in the real estate sector in China. Vietnam’s GDP is estimated to grow 6.3 per cent in 2023, while Cambodia’s GDP is expected to grow 5.2 per cent. Growth in the East Asia and Pacific (EAP) region is projected to be 4.3 per cent up in 2023, as easing of pandemic-related restrictions allows activity in China to gradually recover. These projections are below those of last June, where regional growth was expected to surpass 5 per cent in 2023-24. Weaker-than-expected goods export growth across the region is one of the regions for downward revisions. Inflation is also expected to ease somewhat after peaking in 2022, as per the report. In the region excluding China, growth is projected to slow to 4.7 per cent in 2023 as pent-up demand dissipates and declining goods export growth outweighs belated recovery in tourism and travel. While recoveries from the pandemic remain incomplete in many countries, with output in 2023 expected to remain significantly below pre-pandemic trends, elevated prices for energy and other inputs as well as further monetary policy tightening are envisaged to hold back activity this year, especially investment. Per capita income growth in EAP is projected to slow to 3.6 per cent in 2020-23 from an average of 6.2 per cent in the decade before the pandemic. In Indonesia, GDP is projected to grow by 4.9 per cent on average in 2023-24, only slightly slower than in 2022, reflecting softening but still robust private spending. After the strong rebound in 2022, growth in Malaysia, the Philippines, and Vietnam is expected to moderate as the growth of exports to major markets slows. Growth is projected at 4 per cent in Malaysia and 5.4 per cent in the Philippines. By contrast, growth in Thailand is projected to accelerate to 3.6 per cent in 2023. Output growth in Pacific Island economies is also expected to be boosted by the relaxation of border restrictions. Downside risks to the forecast for the EAP region include the possibility of renewed pandemic-related disruptions, more prolonged real estate sector stress in China, sharper tightening of global financial conditions, weaker global growth, and more frequent disruptive weather events linked to climate change. A prolonged war in Ukraine and intensifying geopolitical uncertainty could further reduce business and consumer confidence globally and lead to a sharper slowdown than projected in the region’s export growth. Commodity- and export-dependent economies like Cambodia, Malaysia, Mongolia, and Vietnam are particularly vulnerable to slowing export demand, including from China. The region continues to experience an increasing frequency of highly disruptive weather events linked to climate change. In terms of recent developments, after a strong rebound in 2021, growth in the EAP region slowed markedly in 2022 to an estimated 3.2 per cent, 1.2 percentage point below previous forecasts. The slowdown was almost entirely due to China (which accounts for about 85 per cent of the region’s GDP), where growth slowed sharply to 2.7 per cent, 1.6 percentage points lower than projected in June. The country faced recurrent COVID-19 outbreaks and mobility restrictions, unprecedented droughts, and prolonged stress in the property sector, all of which restrained consumption, energy production, and residential investment. Fiscal and monetary policy support for domestic demand and an easing of restrictions on the real estate sector have only partially offset these headwinds. In the region excluding China, the pace of growth more than doubled, rising to 5.6 per cent in 2022. Activity was supported by a release of pent-up demand as many countries continued to lift pandemic-related mobility restrictions and travel bans. Growth in the region excluding China in 2022 was 0.8 percentage point above the June forecast, reflecting upgrades for Malaysia, the Philippines, Thailand, and Vietnam, most of which also benefited from a strong rebound of goods exports. Consumer price inflation increased across the EAP region in 2022. Notwithstanding this increase, price pressures have been generally more muted in EAP than in other regions. This partly reflects remaining negative output gaps due to a combination of relatively high potential growth and protracted recovery as well as widespread price controls and subsidies.
Source: Fibre2Fashion
Netherlands’ consumer price index (CPI) rose 9.6 per cent year-on-year (YoY) in December 2022. In November, the inflation rate stood at 9.9 per cent. The price development of energy had a downward effect on inflation, as per Statistics Netherlands (CBS). Clothing had an upward effect on inflation. Clothing prices increased by 12.3 per cent YoY in December 2022 in the Netherlands. On average, consumer prices were 10.0 per cent higher in 2022 than in the previous year, according to a report by the CBS. In November, the YoY increase was 6.6 per cent. Excluding energy and motor fuels, inflation would have increased from 6.8 per cent in November to 7.5 per cent in December.
Source: Fibre2Fashion
