Big boost for the manufacturing sector through PLI schemes in Budget 2023
Textile entrepreneurs discuss key issues to bring stability to the sector
FM Nirmala Sitharaman to renew Atmanirbhar pledge, raft of steps likely in Budget
Tamil Nadu textile industry seeks export incentives in Union Budget
Sri Lanka’s fabric imports from India increase
Supporting MSMEs for a Resilient Global Supply Chain
In India-UK trade deal, focus on what is acceptable to both countries, says Piyush Goyal
Budget may reinforce PM Gati Shakti with extra support to states
Impasse broken to get India FTA talks back on track, says UK trade minister
INTERNATIONAL
Canada dumps 500 million kg of textiles per year
Zero-Waste Textile Industry Possible
PVH, H&M, Inditex amongst latest to sign Pakistan Accord
Fibres & Yarns Expo 2023 concludes on a high note
NATIONAL
Auto, IT and Pharma sectors are expected to benefit further from PLI schemes in the upcoming budget. The government is anticipated to extend existing PLI (Production-Linked Incentive) schemes and combine them with low corporate tax rates to give a boost to the "Make in India" initiative. This is intended to encourage domestic manufacturing and make the country self-reliant in these key industries. The Production Linked Incentive (PLI) schemes were announced in March 2020 to encourage domestic manufacturing and increase the competitiveness of Indian companies in the global market. Initially, only three sectors were included in the scheme, but as of today, 14 sectors have been included, with a focus on the pharmaceutical industry. Other sectors such as IT hardware, auto, solar, textiles, and food processing have also been included. The total outlay for the scheme is estimated to be 1.9 trillion rupees over a six-year period, with various sectors seeing an increase in allocation. Electronics manufacturing sector is another important area for the Indian government's PLI scheme. The scheme for electronics manufacturing, pharma, textiles, and auto components have been developed to promote domestic production and increase competitiveness in these sectors. As of now, 32 companies have been approved for the PLI scheme for electronics manufacturing, and 14 companies have been approved for the PLI scheme for IT and hardware PLI scheme has provided an opportunity for companies in various sectors to benefit from the incentives offered by the Indian government. Companies such as Dixon Technologies and Lava International in the IT hardware space and Dell International are expected to see a boost in their production and competitiveness in the global market. The auto and auto component industry is also expected to see benefits from the PLI scheme, as nearly 95 applicants have been approved for the proposed investments. This is expected to boost growth in the auto industry. Ashok Leyland, Tata Motors, Mahindra and Mahindra, Hero MotoCorp Limited are some of the names that will come in the auto and auto components space. Government has also allocated a significant amount of funding for the pharmaceutical sector under the PLI scheme, with a total allocation of Rs. 28,760 crores. There are five main PLI schemes in the pharmaceutical industry, and 55 companies have been approved so far. Sun Pharma, Aurobindo Pharma, Dr. Reddy’s Laboratories, Lupin will benefit from this. The textile sector also received a boost with the PLI scheme, which is expected to give a push for exports. Companies like Gokaldas Exports, Arvind Ltd, Trident, Paragon Apparel, Kimberly Clark, Donear Industries in the listed space are expected to benefit from the scheme. 67 applicants have been approved in the textiles sector. Additional sectors such as Leathers, bicycles, vaccine materials, telecom products, toys, and chemicals are some of the areas which neeed inclusion in PLI scheme. This would necessitate an additional investment of Rs. 35,000 crores over time.
Source: Times of India
Indian Texpreneurs Federation (ITF) recently organised a visit for various textile entrepreneurs in Coimbatore. These entrepreneurs discussed key issues to bring stability in the textile sector. They are eyeing reductions in cotton prices and freight charges. Around 120 directors of spinning mills discussed these issues in an interactive session, according to Indian Texpreneurs Federation. Some of the other key points discussed were cost reduction techniques, sharing of benchmark numbers with regard to productivity, best practices to be adopted to improve manufacturing and more, according to ITF convenor Prabhu Dhamodharan. Amongst those who participated in the event apart from ITF were Andhra Pradesh Textile Mills Association, Telangana Spinning and Textile Mills Association, Spinners Association, Gujarat. Also discussed in the meet were market trends and quality parameters as well as market intelligence regarding domestic and export markets for yarns and fabrics. The participants emphasised on the sharing of knowledge in adding value to the sector and research on global and domestic trends in ‘textile and fashion’.
Source: Apparel resources
As the government aims to set a template for the next 25 years through the Budget for FY24, it will likely renew its Atmanirbhar Bharat (self-reliant India) pledge by focussing on five pillars – economy, infrastructure, technology, demography and supply chain. According to sources, a raft of measures are being worked out to spur domestic manufacturing and trim import reliance, especially in fertilisers, cooking oil and crude petroleum. Steps are likely to lure businesses seeking to relocate from China, reduce compliance burden for India Inc and bolster supply-chain. Easier rules to woo patient capital, innovative ways to boost financing in infrastructure and the intent to firm up a viable and innovative public-private partnership model may be announced too. Fresh announcements to deepen the market for green financing and promote eco-friendly manufacturing practices may also feature in the Budget. Infrastructure creation will of course remain a priority, with focus on enhanced public capex to stimulate growth and spur employment. “Self-reliance is a key focus area for the country to emerge as a developed nation by 2047, which is a goal set by Prime Minister Narendra Modi. The Budget will reflect this theme in its own way and broadly focus on efforts to make the goal a reality,” a senior government official told FE. This will mean that it will focus not just on boosting growth on a sustained basis but also on improving ease of living. However, as the government has asserted, self-reliance doesn’t mean the country will shut its door to foreign competition. Instead, it will further deepen its engagement with the world to improve its own competitiveness. So, free trade agreements (FTAs) with key economies, including the UK, the EU, Canada and Australia, will be pursued seriously, said another official. Of course, the focus will be on hammering out balanced FTAs. As part of the efforts to boost manufacturing, the government will likely roll out production-linked incentive (PLI) schemes in select sectors, including electronic components, toys, furniture, textiles, leather and footwear. Customs duties on dozens of products will be hiked where excess domestic capacity exists or where there is an urgent need to create capacity and those on raw materials will be lowered. Products such as private jets and helicopters, select consumer electronics, plastics, certain iron & steel products, jewellery and leather could witness higher duties. The Budget may spell out plans to enhance domestic production of fertilisers, edible oil and crude oil to reduce imports, rein in inflationary pressure and cut subsidy outgo. Self-reliance in fertilisers could be explored via fiscal support to revive viable closed units and build new ones, and through novel measures such as greater adoption of nano-urea. Fertiliser subsidy made a huge dent in the government’s finances this fiscal, as it’s expected to hit Rs 2.5 trillion, against the budgeted Rs 1.05 trillion. Greater support over the medium term may be extended to improve edible oil output through schemes like the National Edible Oil Mission-Oil Palm. Similarly, the country will seek to vigorously raise its ethanol production for mixing it with petrol to cut petroleum imports in the coming years. A clutch of green initiatives are also in the offing. These include raising the issue size of sovereign green bonds in FY24 from Rs 16,000 crore this fiscal.
Source: Financial express
The textile industry of Tamil Nadu has sought export incentives and additional credit support in the budget for 2023-24 of the Union government to be presented in Parliament on February 1. The Tiruppur textile industry which is the pioneer for exporting of textiles from Tamil Nadu and for that matter from South India has sought for credit support to the micro, medium and small scale units (MSME). The industry has sought credit support under the Emergency Credit Line Guarantee Scheme (ECLGS). The exporters said that the economic slowdown and the uncertainty in the European market following the Ukraine war have led to a predicament for the industry which has been controlling the European market in the knitwear section. K.M. Subramanian, President of Tiruppur Exporter's Association (TEA) in a statement said, "A 5 per cent interest subsidy on export credit is required for MSME and non-MSME manufacturers. It is to be noted that the buyers are delaying payment globally citing several issues." The Textile exporters also said that Summer Good orders, a major order from European countries have fallen drastically for Tiruppur textile industry. Exporters and knitting company owners said that there is a decline of 30-40 per cent of the orders from the European market itself and this has affected the survival of the industry. The exporters also demand that the quantum of rebate under RoSCTL (Scheme for Rebate of State and Central Taxes and Levies on Export of Garments and Made- ups) which is provided as duty credit scrips, must be increased. The Tiruppur knitwear industry also want a removal of import duty on raw cotton and imposition of anti- Dumping duty on imports of Viscose Staple Yarn(VSY). The Kancheepuram Silk Sari prices have also gone up due to the increase in import duty of silver and gold used in zari or jarigai. This has also led to the reduction in sales of Kancheepuram Sari's which are a brand in itself. It is to be noted that Tamil Nadu accounts for 19 per cent of the textile output of the country and also 40 per cent of the spinning mills in the country. Its first in apparel production in the country and second in textile production.
Source: Business-Standard
Indian fabric has been gaining ground in the Sri Lankan textile market as imports from India are increasing in the island country. The total imports for 2022 until November 2022 stand at 556.921 million dollars and will likely surpass 2021 figures. Indian goods have gained more than fifty per cent in four years. Sri Lanka’s fabric imports from India increased to 565.848 million dollars in 2021 from 374.214 million dollars in 2017 as per a news report. China and India are the top suppliers of textiles with India holding a 26 percent market share.
Source: The Indianawaaz
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the global value chain and their support and integration into the supply chain ecosystem is vital for a resilient global supply chain. This was emphasized at the fourth Plenary Session of B20 India Inception Meeting on Building Resilient Global Value Chains in Gandhinagar by the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal.
MSMEs Flourish around a Larger Unit or Anchor
The Minister highlighted that MSMEs flourish around a larger unit or anchor. An example given was that when a large company such as Apple sets up a manufacturing plant, thousands of MSME units flourish in the ecosystem as mini value chain suppliers to Apple. MSMEs have more practical solutions and day-to-day experiences and have learned through hard experiences, they are able to adapt to circumstances better than large companies. Therefore, large companies must take responsibility to handhold MSMEs, help them adapt best practices, and integrate them into the supply chain ecosystem.
Creating an Enabling Ecosystem
To become a trusted and resilient partner in global value chains, the government is focusing on creating an enabling ecosystem that is simpler, faster, and promotes ease of doing business for MSMEs. Efforts need to be made to make it easier for small companies to operate, eliminate unnecessary paperwork, make custom processes simpler, and use technology to ease and simplify processes. Singapore has been highlighted as a role model in this regard, and a study can be done to figure out what Singapore has been doing right and based on this a basic framework can be created for supporting MSMEs. This framework may involve infrastructure development and addressing challenges of logistics.
MSMEs Bring Trust to the Table
MSMEs bring trust to the table, which is the most important element of any value chain, be it domestic or international. Harmonizing India’s value chains with the rest of the world and creating logistics that are easier and faster is crucial to make it easier for international companies to include India in their value chains.
Quality as a Key Factor
The focus of the government is on trying to make our country accept Quality as the most important factor in the success story of India. Setting global benchmarks, harmonizing Indian standards with global standards, and consumers becoming more demanding of quality are essential for India to become a global key player.
India’s Exemplary Resilience
India faced the Covid crisis with exemplary resilience, which has been recognized worldwide. India is one of those countries that through the entire period of the Covid pandemic never let down a single business commitment. Every service commitment was met without any disruption, there was not a single day of power failure, energy shortage, no law and order problem.
India-UAE CEPA Agreement
The Minister noted that MSMEs of both India and UAE will be the biggest beneficiary of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Both countries are engaging with each other and exploring opportunities to meet the needs of each other’s countries. India is in dialogue with some of the larger companies of UAE to leverage the best out of CEPA.
District as Export Hub Initiative
The district as export hub initiative of the government, inspired by the Prime Minister’s idea to recognize every district for their unique products and identify the specialty of districts by knowing which district exports which products. This initiative will help in promoting local products and in turn, boost the local economy. The goal is to make each district a hub for a specific product or products, and to attract more tourists to these districts to experience their unique offerings.
Source: The Newsonair
Commerce and Industry Minister Piyush Goyal has said that in the talks for the proposed free trade agreement between India and the UK, the focus is on what is acceptable to both countries and not allow sensitive issues to scuttle the discussions. He also said that student visas are never part of a free trade agreement (FTA). India has recently concluded the sixth round of talks with the UK and the next round will be held soon. Negotiations with the UK started on January 13 last year with an aim to boost bilateral trade and investments. The bilateral trade between the two countries increased to USD 17.5 billion in 2021-22 compared to USD 13.2 billion in 2020-21. India’s exports stood at USD 10.5 billion in 2021-22, while imports were USD 7 billion. “With UK , our approach is let’s focus on what is acceptable to both the countries and let us not allow sensitive issues to scuttle our discussions,” Goyal told reporters here. When asked about a statement of a UK official that granting more students visas for India is not part of this agreement, Goyal said: “Have you ever heard of student visas being part of FTA? How many students go there (UK) to study? It’s never a part of an FTA”. British trade minister Kemi Badenoch, who is in-charge of the negotiations, recently stated that the trade agreement is expected to be clinched this year but it won’t involve any boost of free movement visa offers for Indians. In an interview with ‘The Times’ recently, the UK Secretary of State for Trade also ruled out any major similarities between the FTA the UK struck with Australia post Brexit and the proposed deal with India. Goyal said FTAs are never negotiated either in newspaper articles, news conferences or in public functions, and these agreements are “serious” functions that happened amongst officials and at higher political levels also discussed when required. “That’s hardcore negotiations and it has to be a win-win for both countries,” he added. Talking about the proposed trade deal with Canada, the commerce minister said that with Canada, India is looking at an early harvest agreement, which is called an early progress trade agreement. In this, “we are hoping to capture the low hanging fruits, so that the businesses can start enjoying the fruits faster and when people start seeing the benefits,” he added. Replying to a query on India’s decision to opt out from the trade pillar of the 14-member Indo-Pacific Economic Framework (IPEF), Goyal said if India would find it in the interest of the country, it will be happy to join that pillar.India opted out from the trade pillar “because we do not know the final contours, we don’t know whether there are any binding commitments, we don’t know whether there will be any restrictions which can hurt our manufacturing or hurt our economy.”So until we see exactly what are the contours that are there and what are the benefits that are there, until that time we have said, we will observe what you (13 members of the IPEF) all are doing ,” he said.India has not yet opted for it, as it is waiting to see what would be the final contours of this trade pillar and what it will get, he added. The IPEF was launched jointly by the US and other partner countries of the Indo-Pacific region on May 23 in Tokyo. The 14 IPEF partners represent 40 per cent of global GDP and 28 per cent of global goods and services trade.The framework is structured around four pillars relating to trade, supply chains, clean economy, and fair economy. India has joined three pillars – supply chains, clean economy, and fair economy. India will host the next special negotiation round of the Indo-Pacific Economic Framework for Prosperity (IPEF) from February 8-11 next year.On the PM Gati Shakti initiative, the minister said that besides efficient planning of roads and railways, PM Gati Shakti portal is being used for unique ideas.Citing examples, he said the portal is helpful in finalising locations for the proposed PM Mitra (Mega Integrated Textile Region and Apparel) parks. It is also used to match the BIS (Bureau of Indian Standards) and FSSAI (Food Safety and Standards Authority of India) labs with the industries.“We have mapped all the labs of the country on the PM Gati Shakti platform…So if the cement industry is in one place, cement testing should be there, and not 500 km away,” he said adding the platform is helping social sectors also. He added that give lakh fair price shops have also been mapped and now “we are mapping” number of transactions on each shop, “so we will be able to know which are the shops where nobody goes, we can remove some of them and which are the shops which are over loaded”. Goyal was here to participate in the inaugural session of the B20 India Inception Meeting here, organised by industry chamber CII.
Source: Financial express
The Budget 2023-24 may take PM Gati Shakti – the National Master Plan for Multi-Modal Connectivity – to a higher level. Besides announcing specific measures including giving access to private sector to the integrated digital platform, the Budget will likely unveil additional incentives to the states to undertake Gati Shakti-related projects under the capex support programme for the next financial year, sources told FE. The Gati Shakti platform, which surveys all major infrastructure projects, will now map “social infrastructure” like schools, police stations etc. and connectivity projects with friendly countries. “Gati Shakti will be a key driver for infrastructure development and economic growth for the next five years. So the Budget will have several measures to fortify it,” an official said. Of the `1 trillion interest-free 50-year capex loans to the state governments in FY23, `5,000 crore is being given to states to implement Gati Shakti-related projects. With the Centre likely to continue the special capex loan facility to states next year, it could earmark a similar, if not slightly higher amount for Gati Shakti projects by states in FY24, the source said. The PM Gati Shakti digital platform, launched in October 2021, aims to provide multimodal connectivity infrastructure to various economic zones by bringing together 16 ministries including railways and road transport & highways together for integrated planning and coordinated implementation of projects, in cooperation with the state governments. Under this programme, the government is also trying to simplify approval processes and the ease the multiplicity of regulatory norms, for the effective implemennation of the `111 trillion ambitious National Infrastructure Pipeline (NIP) by FY25. The projected investments over the 6-year (FY20-FY25) NIP period is more than double level in FY14-FY19 period. Mapping of social infrastructure such as police stations, hospitals and anganwadis with the Gati Shakti will give a holistic view to investors about facilities available in a region for taking a faster and more informed decisions on their industrial projects. Given the scalof infrastructure investment required, around 79% of NIP is estimated to flow from the Centre and state governments while the balance 21% from the private sector (compared with a 30% share in FY14-FY19). “Currently, private investor players don’t have access to Gati Shakti Master Plan tool. Except for security-related matters, other aspects of the Gati Shakti tool may be opened for the private sector to help them identify the suitable destination of their investments,” another official said. Given that India is currently implementing several infrastructure projects in neighbouring countries, the Gati Shakti ambit will likely be expanded to cover key economic projects in neighbouring countries such as Nepal, Bangladesh, Bhutan and Sri Lanka. Over the recent years, the centre has placed infrastructure development at the centre stage through both policy and financial inte rventions, especially by way of increased focus on capital spending. Its capex allocation during FY23 is estimated at Rs 7.5 trillion, up 27% on the year.
Source: Financial express
Britain's trade minister in charge of negotiating a free trade agreement (FTA) with India on Tuesday admitted the talks had hit a "bit of an impasse, which she broke by flying to New Delhi last month. UK Trade Secretary Kemi Badenoch said the deal is now "back on track", in an apparent reference to the Diwali 2022 deadline for the FTA set by former prime minister Boris Johnson being missed last October amid political turmoil in Britain. Addressing Lancaster House in London in a speech laying out her Top five priorities for trade", the minister insisted that she was a problem solver at heart and is confident a "high quality" deal will be struck with India. "Some of you will know I was a software engineer and a systems analyst before I became a politician. That means I'm a problem solver at heart," Badenoch told the business gathering. "So when our Indian trade talks hit a bit of an impasse, I didn't pick up the phone, I got on a plane. That deal's not done yet, but it's back on track," she said. Badenoch was in New Delhi in early December to hold talks with her counterpart, Commerce and Industry Minister Piyush Goyal, and kick off the sixth round of FTA talks. The seventh round is expected in the UK in the coming weeks, with both sides reluctant to set a new deadline for completing the negotiations. Highlighting clinching trade deals among her top priorities, the British minister said: "We will seal high quality deals with India and CPTPP [Comprehensive and Progressive Agreement for Trans-Pacific Partnership] they have a combined population of nearly 2 billion consumers opening exciting opportunities in fast-growing markets for years to come "But I want to be clear that just signing on the dotted line is not the objective. These deals will only be agreed if they are the right deals for the people of this country. Bringing in jobs and investment to left-behind communities and capitalising on those areas in which we specialise." With reference to the work being done by her Department for International Trade (DIT) in opening up the Indian market for UK businesses, the minister flagged the example of a north-west England pet food company. The Lancashire firm called VetPlus reportedly approached the DIT recently over a paperwork problem in selling their pet food products into India. "We fixed it. And the company now expects to do GBP 1.5 million of additional business over the next five years. This is where my team comes in, she declared. Laying out her plans for 2023, the trade minister vowed to remove trade barriers, knocking down "100 unnecessary blockers" standing in the way of helping UK businesses sell more and grow more, creating new jobs and paying higher wages. "The UK is a leading destination for foreign investment. However, this position is not a given. There is fierce global competition for every pound of finance. I want to make the UK the most attractive place to invest in Europe, enticing companies from across the world to put their money into communities across the country, she said. According to official UK government data, India-UK bilateral trade currently stands at around GBP 29.6 billion a year. Both sides formally launched FTA negotiations at the start of last year with the ambition to significantly boost that two-way exchange.
Source: Business-Standard
INTERNATIONAL
The Canadians toss away close to 500 million kg of fabric items on a yearly basis including things such as clothing, shoes and toys. A new study from researchers at the University of Waterloo and Seneca College have arrived at this finding and they hope a grading system will put an end to that. Professor Olaf Weber, who co-authored the study Textile waste in Ontario, Canada: Opportunities for reuse and recycling said, “Fashion consumption is at an unparalleled high. Consumers buy, use and dispose of new garments, which end up in the landfill, and less than one per cent of the materials are recycled. This new method is an important step to curbing our waste.” It has been said that the researchers looked at a new method that would grade the clothing from A to F to decide if the garments could be resold, recycled or tossed. A pair of ripped and stained jeans might be given a D grade which could see them repaired before they are donated and resold. They claim that by looking at the clothing this way, more than half of the textiles could be reused while another quarter could be recycled. The researchers accept that getting the garments repaired in Canada might raise prices above market value in Canada but that is not always the case.
Source: Apparel resources
A new life-cycle assessment by the European Recycling Industries' Confederation (EuRIC) and a report by Zero Waste Europe (ZWE) – both released this month – are showing the potential for circularity within the textile industry. The EuRIC study (LCA-based assessment of the management of European used textiles) found that the reuse of textiles leads to 70 per cent less environmental impact than the production of new clothing, with this figure accounting for the global export costs of reuse including transport emissions. The European Parliament states that the global textile industry is responsible for 10 per cent of global carbon emissions – more than international flights and maritime shipping combined. Mariska Boer, President of EuRIC textiles, notes that currently, 62 per cent of used clothing and textiles in Europe end up being incinerated or landfilled due to improper disposal. She added that the European textiles reuse and recycling industry hopes for a ‘circular textile value chain where every piece of clothing is reused in an optimal way and/or recycled’. The ZWE report (Beyond Circular Fashion – a new business model for the fashion industry), although unaffiliated with the EuRIC study, also advocates for reuse as an essential criterion for zero-waste fashion business models – with particular emphasis on increasing the lifespan of items in the design phase. Both studies are intended to complement the EU’s ‘Strategy for Sustainable Textiles’ which was launched in March 2022 and requires Member States to start collecting textiles separately by 2025. The reports show that there is real potential for securing a zero-waste, circular economy for the textiles industry.
EuRIC life-cycle assessment of textile industry
The life-cycle assessment, commissioned by the European textile reuse and recycling industry, found that the reuse of textiles leads to significant CO2 and water savings compared to the production of new textiles. 3kg of CO2 is saved for each high- to medium-quality piece of clothing that is reused. Only 0.01 per cent of the water used to produce new clothing is required for reuse. For example, a new t-shirt analysed in the study emitted 3.38kg CO2e, or almost 60 times more than a reused t-shirt of the same quality which only emitted 0.06 kg CO2e. For water, a reused t-shirt uses 0,0003 m3 of water, while a new t-shirt had a water use of 30,77 m3. The Confederation says the findings also confirm waste hierarchy assumptions on the benefits of reuse over recycling but says that recycling also has a place in the case of low-quality textiles. Items composed of materials such as polyester have comparative environmental benefits when recycled as long as they are unlikely to find a place on the second-hand market. In the textile industry, reuse refers to processes which prolong the practical service life of textile products such as buying secondhand, renting, trading, swapping and more. It can be done with our without modification such as mending. Recycling refers to the reprocessing of textile waste for new textile or non-textile products. The study concludes with several recommendations to policymakers, including for investment into textile recycling facilities globally. It states that innovation in fibre-to-fibre recycling will be a major part of developing circularity for the industry as volumes of non-reusable clothing are set for major increase. It also highlights the need for ‘eco-design criteria’ that will increase the lifespan of clothing and offset the need for recycling. These criteria should include rules that mandate member states to sort high- to medium-quality textiles from low-quality. President Boer concluded: “This study endorses the environmental benefits of a global market for textile reuse and recycling’s potential to tackle the rising amounts of low-quality and non-reusable clothing.”
ZWE report on textile industry business models
ZWE last week (17 January) released a report showing four essential criteria to allow zero-waste fashion business models. Titled ‘Beyond Circular Fashion – a new business model for the fashion industry’, it urges policymakers to ‘look beyond circularity and ecodesign’. The report labels the current fast fashion business model as being based on ‘overconsumption, resource depletion, social exploitation, fossil-based fibres, and greenwashing’. Like the EuRIC study, it highlights the overuse of ‘cheap synthetic fibres’ as fuelling current business models of production.
ZWE states that all four criteria must be met simultaneously.
The study notes that textiles are a relatively new area for policy intervention and this is the first study to look at business models over sustainable production. It advises the need for more research and action in several areas: Gains, costs, and externalities associated with a radical change of current business models to one that is fair, sustainable, and zero waste; Fashion and climate – in particular, looking at the carbon budget available for the sector as a way to inform future legislative steps; Fashion and biodiversity – studying the impact of fast fashion on current biodiversity decline; Identification of existing best practices from a business model perspective; Design policies to encourage the transition to, or/and creation of, new businesses following the aforementioned criteria. Theresa Morsen, Waste Policy Officer at ZWE, commented: “With this report we are establishing guidance for businesses to become truly sustainable, ending overproduction and consumption to respect planetary boundaries. This will help scale up sustainable business models and ZWE intends to empower pioneers in this field.”
Source: The Resource.co
In a statement to Just Style today (24 January), the Accord Steering Committee (SC) member brands – PVH Corp, H&M, Inditex, C&A and Bestseller – affirmed their commitment to the workplace safety programme in Pakistan, in close collaboration with their Pakistani suppliers and other stakeholders. German e-commerce giant Otto Group was one of the earliest signatories, signing up last week, along with retailer Tchibo. The Pakistan Accord on Health and Safety in the Textile and Garment Industry, which is a legally binding agreement between global union federations, UNI Global Union and IndustriALL Global Union, and garment brands and retailers for an interim term of three years starting in 2023. Brands have been invited to sign from 16 January. “The International Accord is preparing for continued engagement with Pakistani stakeholders in the coming weeks, as we take steps towards the establishment of a Pakistan Accord office and the commencement of programmes,” the Accord Steering Committee (SC) member brands said in their statement. “We, together with our Accord brands’ colleagues, are committed to supporting our suppliers in meeting the highest safety standards. This includes efforts to establish local governance structures that ensure industry and local brand and union participation in decision-making in every phase of the programme. “The International Accord aims to protect the health and safety of millions of workers while helping the industry achieve sustainable growth in exports. With the signing of the Pakistan Accord and our brands’ commitment to this new safety programme, we are renewing our commitment to a long-term sourcing relationship with Pakistan. “The Pakistan Accord provides an opportunity both to increase the visibility of the efforts already made by many manufacturers to invest in fire and building safety measures in recent years and deepen and expand them throughout Pakistan’s garment and textile sector, making it an increasingly attractive option for buyers across the globe. “We encourage all brands around the world to sign the Pakistan Accord agreement and join us in our collective commitment to raise the safety standards at supplier factories in Pakistan.”
Accord inception
The International Safety Accord announced it was extending its efforts into Pakistan in December after nine years of operating in the garment sector in Bangladesh. It sees signatories to the International Accord for Health and Safety in the Textile and Garment Industry establish a comprehensive workplace health and safety programme in Pakistan covering signatories’ garment and textile suppliers. Building on widespread safety improvements in Bangladesh, the Pakistan Accord includes all key International Accord features: independent safety inspections to address identified fire, electrical, structural and boiler hazards, monitoring and supporting remediation, a safety committee training and worker safety awareness programme, an independent complaints mechanism, a commitment to broad transparency, and local capacity-building to enhance a culture of health and safety in the industry. In a statement last week, Professor Dr Tobias Wollermann, group vice president of corporate responsibility for Otto Group, said: “The collapse of the Rana Plaza textile factory in Bangladesh in 2013 marked a turning point for the global textile industry. The agreement, which subsequently became known as the ‘Bangladesh Accord’ and in which the Otto Group played a major role, has since improved labour and safety standards in the South Asian country enormously. “When the Otto Group, together with many other international companies and global trade unions, agreed on a new agreement (International Accord) for occupational safety in the global textile and clothing industry in 2021, it was clear that other countries besides Bangladesh should also benefit from it. “That is why I am delighted that we have signed the new Pakistan Accord today. The extension of the achievements that the Accord has achieved in Bangladesh for the safety of workers is a hopeful prospect for Pakistan.” The successful experience in Bangladesh prompted the signatories to expand the workplace safety programme to at least one other textile and garment-producing country. Through signatory surveys, extensive research, and local stakeholder consultations, the Accord Secretariat assessed the feasibility of expanding based on key factors. Pakistan emerged as a priority country, in part because of its importance as a garment and textile sourcing country for the Accord brands. The International Accord has undertaken extensive engagement in Pakistan with federal ministries and provincial governments, industry associations, suppliers, trade unions and civil society organisations. The Pakistan Accord programmes will be implemented in phases, in close collaboration with these key stakeholders and through the establishment of a national governance body. The Pakistan Accord covers Cut-Make-Trim (CMT) facilities, namely Ready-Made Garment (RMG), home textile, fabric and knit accessories suppliers (including vertically integrated facilities). Fabric mills within the supply chains of the signatories are also covered, with implementation scheduled for a later stage in the program. The programme aims to incrementally cover more than 500 factories producing for more than 100 Accord signatory companies throughout the Sindh and Punjab provinces, where most of Pakistan’s US$20bn in garment and textile exports are manufactured annually. All current signatories of the International Accord which are sourcing from Pakistan are expected to also sign the Pakistan Accord.
Source: Just-style
The 16th edition of Fibres & Yarns Expo 2023, organised by Tecoya Group from 19 – 21 January in Mumbai has concluded on a high note. Leading fibre, yarn and fabric companies from India as well as from other countries displayed their latest offerings in the show. Along with market leaders like Reliance Industries, Vardhman Textiles, Grasim, Indorama, Nahar Group, RSWM, Bhilosa Industries, Amarjothi Spinning Mills, Texperts India, many middle-level companies were part of the show. Overall there were 100+ exhibitors. Organised at Jio World Convention Centre, the event saw a good number of visitors from across India. In discussion with Team Apparel Resources, the exhibitors shared that textile mills, garment exporters, brands visited in large numbers. It was interesting to see that most of the companies highlighted their thrust on sustainability and visitors also took interest in sustainable products. It was observed at the expo that irrespective of market conditions, few of the textile companies are in an expansion mode. For more updates about the expanding companies, keep following the same space.
Source: Apparel resources
