Maha govt to extend current textile policy by 3 months: Patil
Manufacturing, services log 8.27 per cent attrition in Q3: Report
Rise and role of technology in fashion design
India plans measures to curb Chinese imports as trade gap concerns mount: Sources
Union Budget 2023: Indirect tax reforms that India Inc expects from govt
Telangana Government to train women in tailoring
A step towards realising the vision of $5-trn economy
Expecting slowdown in Indian economy to 6.1% in 2023 from 6.8% in 2022: IMF
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Dollar crisis puts textile millers in a tight spot
Egypt, IFC discuss expansion of development finance to increase private sector participation
EU calls on young to promote circular fashion
Uninterrupted energy supply key to retaining textile, apparel industry competitiveness
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Mumbai, Jan 30 (PTI) The Maharashtra government is likely to extend the state’s current textile policy by three months, Minister for Higher and Technical Education and Textile Industry, Chandrakant Dada Patil said on Monday. “The present textile policy of Maharashtra has been operative from 2018 …and is expiring on March 30, 2023. “We have appointed a committee of 30 stakeholders, including two representatives of CMAI. This committee has recommended extending the present textile policy for further three months,” Patil said after the inauguration of the Clothing Manufacturers Association of India’s (CMAI) 76th National Garment Fair (NGF). According to the minister, the committee will submit its final report by March-end and based on these recommendations, the Maharashtra government will form its new textile policy. The state government is planning to set up a garment trading hub in Mumbai on the lines of China’s Guangzhou and Turkey’s Istanbul, he said. The three-day-long NGF, which will end on February 1, has more than 950 stalls and over 1,000 brands on display. PTI SM SHW
Source: The print
The average attrition rate across manufacturing and services industries increased sequentially to 8.27 per cent in the October-December quarter, a report said on Monday. With a continuance of the 'Great Churn', attrition across industries witnessed a 0.46 percentage point increase from an average of 7.81 per cent in the second quarter to 8.27 per cent in the third quarter, according to TeamLease "Employment Outlook Report". The report is forward looking statistics for 'Intent to Hire' for January to March 2023, for both manufacturing (nine industries) and services sectors (14 industries), which is based on a survey of 874 small, medium and large companies. The report revealed that the Information Technology industry in the services sector had higher average attrition (27.19 per cent) compared to Healthcare and Pharmaceuticals industry in the manufacturing sector (15.67 per cent) It found that healthcare and pharmaceuticals industries saw double digit attrition rates (15.67 per cent) as compared to Manufacturing, Engineering and Infrastructure (7.51 per cent), Agriculture and Agrochemical (6.55 per cent), Power and Energy (5.63 per cent), Construction and Real estate (4.19 per cent) and Fast Moving Consumer Durables (4.03 per cent). Whereas the Textile and Electric Vehicle and Infrastructure industry, faced the lowest attrition trends for the third quarter with 1.22 per cent and 2.63 per cent, respectively. Other industries in the manufacturing sector recorded negative attrition during October to December quarter. Among start-ups in manufacturing, attrition rates were alarmingly high at 26 per cent, it added. "Attrition has increased for a number of reasons, including an unprecedented high demand for hot skills in technology, risk, assurance, and areas such as ESG (environmental, social, and governance). In the post-Covid era, the war for talent became more intense and the impact was high on the manufacturing segment," TeamLease Services Vice President and Business Head Balasubramanian A noted Meanwhile, from a services sector perspective, key industries which witnessed higher attrition were Information Technology (27.19 per cent), Educational Services (18.02 per cent), Ecommerce and Allied Start-ups (15.13 per cent), Knowledge Process Outsourcing (13.79 per cent) and Telecommunications (12.05 per cent). However, the rest of the four industries, namely Travel and Hospitality, Logistics, Consulting and Media and Entertainment saw low attrition rates of below 5 per cent during the October-December quarter, it stated. "Influenced by upcoming appraisals, economic turmoil in the ecosystem, and increased migration between allied industries, attrition has increased significantly. Attrition has been reported to be higher also due to increased new age opportunities," TeamLease Services Vice President and Business Head Ajoy Thomas added.
Source: Economic times
In the age of AI and VR, robust immersion of technology has revolutionised the apparel, fashion, and luxury leather goods industry. From creating a new retail experience, and reforming the fashion eco-system, to stimulating exquisite designs on textiles, as well as effectuating new looks with a better fit for size inclusivity, technology has transformed how manufacturers and consumers experience fashion. Besides introducing new processes such as additive and subtractive techniques, it has also improved and streamlined the existing modes of manufacturing and production. Manufacturing is a vital operational pivot in the fashion business. With technological advancements, new techniques are constantly emerging and more feasible options are coming to the horizon, facilitating prototyping and small to medium-scale production, putting to rest the issues previously face by small businesses. Prime amongst them is 3D printing, a form of additive manufacturing with use in fields ranging from aeronautics to medicine, rapidly being adapted into the design industry. In the pursuit of designing and prototyping a complex shape, 3D printing comes to the rescue, bringing the ideas to life in a matter of hours thus facilitating various iterations that would previously take days, if not weeks. With CAD (Computer-Aided Design) tools such as Solidworks or Rhino, the aspects of design that demand precision and refinement while the product is in its iterative phase, it’s easier to create detailed drawings and technical illustrations to facilitate later-stage mass-manufacturing while averting flaws and saving precious resources. A stitch in time saves nine. Another recent technological advancement that is increasingly becoming common in the leather, textile and apparel industry is the Laser cutting and etching process. Apart from being user-friendly for file setups, its accuracy and speed have made it quite a hit in the fashion and furniture industries. Some key benefits of the laser cutting process include minimum to no material distortion, achieving pattern precision for repeated cuts, accurate sizing, and achieving complex design cuts. It has substantially elevated the inventive and innovative aspect of any design structure while keeping its efficiency and usability in place. Since the machine uses a highly focused beam of pulsating radiation, it creates a clean edge while cutting the materials. It has replaced the traditionally used hot knife or dies for small-scale production. In the design world, a lot depends on the exact replication of the envisioned blueprint. Computer Numerical Control (CNC) carving is another example of how newly accessible technology is helping in restoring the exquisiteness of any pattern or style. CNC carving includes replicating intricate carving designs traditionally done painstakingly with hands, in minutes. This technique has eased off the process of painstakingly replicating the sculptural designs creating an exquisite couture collective representing India’s rich culture and heritage through the reflections of famous stone and wood carving. Although some would argue that these processes are putting traditional craftsmen out of business, they should be interpreted as a transition into the next stages of design where the mind’s creative flow is not hindered by our inability to physically create. These technologies made accessible to the general public, coupled with AI and software advancements, provide designers and people with a solid set of tools for the furtherment of their creativity and artistic expression.
Source: Times of India
India is considering a number of tariffs and non-tariff steps to cut imports of non-essential consumer and electronic goods, including from China, as trade imbalances concern policymakers, two government officials and an industry source said. As many as 18 key government ministries, led by the trade ministry, met last week to firm up steps first aimed at cutting imports from China, which accounts for nearly a third of India's trade deficit, said the three sources who declined to be named. India has been trying to reduce its trade deficit with China since 2020, when border tensions flared along a contested frontier, but with little success as the country is a key and cheap supplier of goods including active pharmaceutical ingredients, electrical equipment and several chemicals. The trade gap with China widened 28% in April-December 2022 from the same period a year earlier, as India's domestic demand continued to support Chinese imports while COVID lockdowns in China crimped imports from India. The government is considering ramping up investigations to weed out unfair practices on a "wide array" of imports, from China and elsewhere, one of the officials said, without specifying which goods or what the unfair practices were. The industry source said that so far this year anti-dumping investigations have focussed on products such as printed circuit boards and a type of toughened glass imported from China. If a trading partner were found to have engaged in unfair practices, it would be necessary to introduce safeguards such as the imposition of anti-dumping duties, the official said. India's federaltrade ministry and China's embassy in New Delhi did not immediately respond to requests for a comment. India's overall merchandise exports fell 12% in December from a year earlier, while merchandise imports dropped 3%, widening the deficit by 13%, government data showed. The officials said India would also intensify checks on imported goods to make sure they adhere to national quality standards, the two government officials added. Reuters reported last week that the government could highlight the rising trade deficit as a major downside risk to the Indian economy in its Economic Survey going in to the new fiscal year from April 1, Reuters reported last week. The government is also likely to detail some of the steps to tackle the issue in the Feb. 1 budget.
Source: Economic Times
Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal called for the creation of an international network of mentors, investors and entrepreneurs to strengthen the global startup ecosystem. He said that this network must support and inspire startups, act as a team to facilitate exchange of ideas, best practices and funding mechanisms and promote collaborations in Research and Development. He was addressing the inaugural session of the Inception Meeting of the Startup 20 Engagement Group of G20 in Hyderabad on Sunday. The Minister said that it is not just the role of individual nations to support innovation and added that it will have to be the collective responsibility of world nations to nurture a global effort to incubate startup ecosystems in all parts of the world, thus creating a global startup ecosystem that is inclusive, supportive and sustainable to address global challenges, Shri Goyal said that India was proud to highlight the progress & potential of the global startup ecosystem as the host nation of G20. He noted that the Startup20 Group had been established under India’s G20 Presidency for the first time, as part of India’s special focus on innovation. The Minister expressed confidence that innovation would be the strongest pillar that would help build a developed India in the Amritkaal. He said that innovation has been a catalytic force for the economy and social and public good. “Innovation in today’s world goes beyond achieving mere economic objectives as it also considers societal inclusion and environment sustainability”, he said. ADVERTISEMENT Tuesday, 31 Jan 23 info@indiashippingnews.com Home Ports Shipping Logistics Maritime Export – Import Trade Coastal Cargo Guest Column Jobs Directory English 2/3 The Minister observed that India had begun its startup journey with the foundation stone laid by the Prime Minister, Shri Narendra Modi in 2016 with the launch of the Startup India Initiative. He said that in the last 7 years, it had helped in fostering entrepreneurship and promoting newer and newer ideas, helping startups grow and flourish by creating an ecosystem that is conducive for growth. He added that the capabilities of our startups in different areas- be it energy, be it financial inclusion, where fintech played an important role, be it our fight against pandemic when remote healthcare and food delivery became very important, be in online learning which is today becoming very natural, be it our work in agri-tech, helped us face a number of challenges. Shri Goyal noted that the world is facing a multitude of global challenges, from climate change to poverty and inequality. He expressed his firm belief that innovation can lead the way in solving these problems. The Minister said that in the Indian startup context, our entrepreneurs are using their creativity and ingenuity to tackle these challenges head-on. He cited the examples of digital public goods like Cowin, UPI and ONDC as means to tackle problems and ensure inclusive growth in India by redefining social innovation. The Minister said that growing participation from Tier 2 & 3 markets that are swiftly embracing latest technology, has pushed envelope for local startups in India with new ideas to succeed. He said that through G-20, India was trying to transfer our expertise, so IndiaStack will be GlobalStack and transform the way people use technology, helping take technology to the common man. He added that developing nations must transform themselves from being destinations for low-cost, outsourced software and support services, to becoming global Tech and Innovation hubs. He also highlighted that India had climbed to 40th rank in the Global Innovation Index (GII) of WIPO taking a huge leap of 41 places in 7 years. Shri Goyal noted that India has been nurturing the innovation spirit right from the school level onwards through Atal Innovation Mission. He said that India also has active programs for supporting startups with many nations around the world. “Some of the prime examples are the Indo-US, Indo-UK, Indo-Australia partnerships where we explore supporting deep tech startups, that contribute to circular economy, and address basic needs like health, water, agriculture, education, financial inclusion etc”, he added. Shri Goyal gave the Mantra of ‘SENSE’ i.e. Share, Explore, Nurture, Serve & Empower for growth of startups. “When I see the enthusiasm all around us, I get a sense of changing mindset, I get a sense of urgency, I can sense that Startup 20 will become a very powerful body which will change the way that the world recognizes and respects startups”, he said. He expressed confidence that the discussions in next 2 days would lay the foundation for strong actionable recommendations for G20 leaders to deliberate and start a Global Startup Revolution, helping us truly make a difference to the future of startups all around the world. Startup 20 will see participation of delegates from G20 nations and nine special invitees from observer countries, representatives from multilateral organizations as well as the Indian startup ecosystem. The group formed under G20 after India assumed presidency is holding its inception meeting from January 28-29 anticipating a productive development of policy recommendations on entrepreneurship and innovation priorities of and across G20 countries for the years ahead. The meeting will create a global narrative for supporting startups and fostering synergies between startups, corporates, investors, innovation agencies, and other key ecosystem stakeholders. G20 Sherpa Shri Amitabh Kant, CEO NITI Aayog, Startup20 India Chair Dr. Chintan Vaishnav, senior government officials and other dignitaries were present at the inaugural session.
Source: India shipping news
Riding high on the vigour encapsulated through propelling economic recovery, steadily fortifying the banking and financial system, the Narendra Modi-led government is all groomed to unveil its last full-fledged budget ahead of the general elections set to kick off in early 2024. For the past three years, the Union budget has seen a focus on ‘support’ and ‘recovery’ of the Indian economy, which has reaped fruitful outcomes for India Inc. However, it is expected that in the upcoming budget, the government may expand its focus on keeping the ‘growth’ momentum on track and roaring to achieve the long-enumerated feat of realising a $5 trillion economy, while keeping the fiscal deficit and inflation in check.
Solve GST issues
Goods and Services Tax will play a pivotal role in accomplishing this goal considering the generous contribution it is making to the exchequer’s revenue basket. In the past year, against the backdrop of a vibrant economy, a steady rise in GST collections was seen, which ultimately stabilised at around Rs 1.4 lakh crore. While it has been half a decade since the implementation of one of the biggest greenfield tax reforms in India, various practical life concerns in relation to the same continue. Several issues have been addressed, but there are still many issues that need expeditious resolution. Amidst a sharp rise in legal proceedings and litigations, it is expected that the government may announce the long overdue constitution of the GST Appellate Tribunal, which represents the second stage of appeal in GST judiciary, in the Union Budget 2023. The Constitution of the GST Appellate Tribunal would provide aid in eliminating challenges being faced by taxpayers who are left with no choice but to approach higher judicial forums in the event of wishing to file an appeal against the first appellate authority. Further, pre-deposit is a mandatory requirement for filing an appeal. Under GST Laws, there is no explicit provision for making such payments from the electronic credit ledger. The matter as to whether the pre-deposit can be paid using the balance in the electronic credit ledger has been a matter of extensive litigation wherein contradictory viewpoints have often been taken by the tax authorities in different cases. Clarification in this regard is much needed by India Inc. Additionally, in the recent GST Council meeting, a major decision with regard to decriminalizing three types of GST offenses - preventing any officer in the discharge of his duties, deliberate tampering of material evidence and failure to supply information was taken. It is expected that corresponding amendments to the GST Act will be brought in the upcoming budget.
Amnesty scheme in focus
One of the other key expectations from the budget is the expeditious introduction of an Amnesty scheme to settle all procedural disputes hovering under GST law since its inception. This will aid not only in augmenting already buoyant month-on-month GST revenues but also reduce the administrative burden of GST officers in undertaking lengthy enquiries or assessments. This will be quite helpful for smaller taxpayers to negate the burden of disputes, especially those that have arisen on account of glitches in the GSTN portal and migration to GST law.
Ease working capital requirements
Back in 2021, the GST Council decided to allow taxpayers to transfer the unutilised balance in the cash ledger under the heads of CGST and IGST to another entity under the same PAN. However, implementation of the same in CGST Rules was not undertaken. Timely introduction of such provision in the GST Act may ease up the working capital requirements and impart much needed support to both big and small businesses.
Inverted duty structure
Another most pressing demand by the industry which merits consideration, is the request for correcting the inverted duty structure which has been a source of hardship for many industries ranging from textiles to aluminium sectors that find their input credit blocked due to higher rates of taxes on inward supplies as compared to outward supplies. The government is even closely examining the inverted duty structure in textiles, which is the second largest employer in the country after agriculture. To attract investment and enhance export competitiveness, resolving these inconsistencies in the Budget 2023 is of paramount importance for the government.
Rate rationalisation
Over the years, the government has consistently worked towards ‘rate rationalization’ by bringing down the GST rates on several goods to achieve a three-slab structure instead of the current four-slab structure under GST. It is expected that the government may take up the same issue on a more expedient basis to also help with correcting the practical problems associated with the inverted-duty structure.
Ease GST compliance
Further, on the GST compliance front, as of today, on one hand, the GST Act provides that a taxpayer is eligible for claiming input tax credit on basis of the statement of outward supplies filed by the supplier, while on the other hand it provides that such credit shall only be eligible if such tax charged in respect of such supply has been actually paid to the government. In practice, matching of ITC is required to ascertain the eligible credit but the law provides no express mechanism to verify if tax liability on the same has actually been discharged by the suppliers, thereby transferring the burden of compliance from the government to the taxpayer. A recent circular clarifying the manner of dealing with such discrepancies for FY 2017-18 and 2018-19 was issued. However, clarification for the remaining period is still awaited.
Reduction in customs duty
Apart from GST, the industry is looking forward to more rate rationalisation announcements and reduction in customs duty on certain products, especially to ensure smooth imports of raw materials. It is also expected that there may be announcements about a possible hike in customs duty on dozens of products across sectors — including aviation, electronics, steel and industry, to curb non-essential imports and further improve local production.
Top up allocation for PLI scheme
It is also expected that the government may top up allocation for ongoing Production-Linked Incentive (PLI) schemes in the budget. Allocations for sectors that have seen a high impact on the ground under active PLI schemes such as electronic manufacturing and IT hardware could be raised and new sectors may be included in the programme to reignite manufacturing in India and boost exports, along with other measures to spur investments.
Industry expects growth-oriented budget
It is evident that the government has brought many changes in the GST landscape with respect to self-certification of audit reports, creating a compliance-driven robust system by interweaving GST returns, e-way bills and e-invoicing systems. However, there are still many other areas that the government needs to work upon in order to help achieve its target of ease of doing business in India. With an aim for stable economic growth and global prosperity, it is expected that the finance minister will consider the expectations of India Inc to deliver a message of good economics and will present a comprehensive and growth-oriented budget.
Source: India today
The Telangana Government has started a scheme to train over 3000 women in tailoring. Minister for Panchayat Raj and Rural Development Errabelli Dayakar Rao said that the State Government is giving paramount importance to the comprehensive growth of women in the state. He gave the statement while inaugurating tailoring classes at Thorrur, further adding that this tailoring scheme is the first-of-its-kind to be taken up in Palakurthi constituency. As many as 3000 women will be trained over three months under this scheme, which is jointly funded by the Society for Elimination of Rural Poverty (SERP) and Stree Nidhi, said the Minister. The training classes at Thorrur is the third such endeavour, with classes in Palakurthi and Kodakandla preceding this one. He added that the target under this scheme is to train women under the age of 35 years so that they can go on to get jobs at the upcoming Kakatiya Mega Textile Park in Sangem Mandal in Warangal district and Mini Textile Park at Kodakandla in Jangaon district. Apart from this, these trained women will also be given all the orders relating to the Government, he said. Those women who are above the age of 35 will also be trained in the next batch; however they will have to find jobs on their own. “Chief Minister K Chandrasekhar Rao believes that normally women will have a good control over their finances. The Government was giving Rs. 18,000 crore loans per annum to the self-help groups (SHGs). Before the formation of Telangana, the SHGs used to get just Rs. 4,000 crore loans,” Errabelli said.
Source: Apparel resources
A fine harmony is required between spurring infrastructure investments, incentivising manufacturing, and having a healthy fiscal deficit. This budget must manage the expectations of corporate India (including Small and Medium Enterprises and Micro Small & Medium Enterprises) and the middle-class population alike, each of whom are contributing towards India’s $5-trillion economy vision. Therefore, the Union Budget 2023 would be a tricky balancing act for the finance minister. Nonetheless, given the aspiration, now is the time for the government to unveil the next set of bold reforms to strengthen manufacturing, promote exports riding on recently concluded free trade agreements, provide impetus to green investments, ease out compliances, clarify vexed issues and win confidence of the common man. In this backdrop, some top of the mind income-tax and other reforms that India expects from the upcoming budget are:
Strengthening ‘Make in India’
The production linked incentive (PLI) schemes, which were introduced covering almost 14 sectors, in line with the Atmanirbhar Bharat campaign, have given a major fillip to various sectors. Looking at the interest generated by the PLI schemes in the last three years, the government should consider not only increasing the allocation of funds to the existing schemes but also extend it to other sectors, such as leather and footwear, broader toys’ sector and fertilisers. The government must also consider reducing the tax rate for PLI-focused sectors. Also, given the geo-political dynamics, the government can buttress India’s position in the global supply chain and manufacturing ecosystem by promoting investments in the arena of semiconductors and chips and EV batteries. Here, looking at the need to bring India at the forefront, the government may consider to introduce investment linked deductions/tax breaks for companies setting up such manufacturing facilities in India. With a focus on sustainable development, the government must provide additional incentives for investment in green technology, be it through the PLI schemes or separate investment linked incentives for technology (including R&D). That apart, sunset clause for commencing manufacturing activities for companies availing concessional tax rate regime of 15% may be extended from March31, 2024 by at least five years. This would not only encourage companies to set up new manufacturing facility in India but also give medium term certainty.
Simplifying compliances and clarifying ambiguous issues
With each successive budget since 2020, the scope and rigour of tax withholding has been increased with an objective of widening the tax base and creating a trail of all transactions. While the objective is well understood, such provisions (including some overlapping ones) have created ambiguity and increased compliance workload of the taxpayers. The government needs to simplify and rationalise such withholding tax provisions, which at times cause unnecessary blockage of working capital and disrupt operations. Specifically, with the operation of Section 194Q, the corresponding TCS provisions could be done away with. Further, it should be clarified that Section 194Q does not apply to export of goods. Section 194R, introduced vide Finance Act, 2022, has created uncertainty amongst all businesses. There is need for additional clarity on the scope of the term ‘perquisite or benefit in the course of business or profession’. Digital businesses require clarification with respect to digital tax provisions especially ‘significant economic presence’ and ‘equalisation levy’ since their current construct is ambiguous. For example, a strict reading of the provisions seems to cover non-digital and traditional business models as well. Also, with rapid developments in global base erosion and profit shifting provisions, especially, Pillar One approach, digital businesses want clarity on the fate of digital tax in India. Capital gains tax structure in India is quite complex with different categories, varied tax rates, different mechanism of computation, etc. This needs to be simplified.
Incentivising the common man: The consumption engine of the economy
Given the positive tax collections, there appears enough elbow room for the government to add a sweetener in this budget for salaried personnel, which could include increasing standard deduction, revisiting the tax slabs, increasing limits under Section 80C or boosting the house rent allowance. This also becomes imperative considering the rising inflation. Many consumers are increasingly making conscious choice of buying green products. With the environment and climate change in mind, the government should consider an increased quantum of deduction in relation to purchase of electric vehicles (EVs). Given the spotlight on India in the current global economy, there is a spotlight on the Union Budget 2023 and its ability to deliver on the hopes and aspiration of corporate India and the common man. The next few days will be rife with anticipation.
Source: Financial express
The International Monetary Fund (IMF) on Tuesday said it is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1 percent from 6.8 percent during the current fiscal ending March 31. The IMF on Tuesday released the January update of its World Economic Outlook, according to which the global growth is projected to fall from an estimated 3.4 percent in 2022 to 2.9 percent in 2023, then rise to 3.1 percent in 2024. Our growth projections actually for India are unchanged from our October Outlook. We have 6.8 percent growth for this current fiscal year, which runs until March, and then we're expecting some slowdown to 6.1 percent in fiscal year 2023. And that is largely driven by external factors, Pierre-Olivier Gourinchas, Chief Economist and Director, Research Department of the IMF told reporters here. Growth in India is set to decline from 6.8 percent in 2022 to 6.1 percent in 2023 before picking up to 6.8 percent in 2024, with resilient domestic demand despite external headwinds, said the IMF's World Economic Outlook update. According to the report, growth in emerging and developing Asia is expected to rise in 2023 and 2024 to 5.3 percent and 5.2 percent, respectively, after the deeper-than-expected slowdown in 2022 to 4.3 percent attributable to China's economy. China's real GDP slowdown in the fourth quarter of 2022 implies a 0.2 percentage point downgrade for 2022 growth to 3.0 percen -- the first time in more than 40 years with China's growth below the global average. Growth in China is projected to rise to 5.2 percent in 2023, reflecting rapidly improving mobility, and to fall to 4.5 percent in 2024 before settling at below 4 percent over the medium term amid declining business dynamism and slow progress on structural reforms. Overall, I want to point out that emerging market economies on the whole and developing economies seem to be already on their way up. We have a slight increase in growth for the region from 3.9 percent in 2022 to 4 percent in 2023, Gourinchas said. Another relevant point here is that if we look at both China and India together, they account for about 50 percent of world growth in 2023. So a very significant contribution, he said. I want to say, we had a positive view on India in our October forecast. That positive view is largely unchanged, Gourinchas said in response to a question. In a blog post he wrote that India remains a bright spot. Together with China, it will account for half of global growth this year, versus just a 10th for the US and euro area combined, he added. For advanced economies, the slowdown will be more pronounced, with a decline from 2.7 percent last year to 1.2 percent and 1.4 percent this year and next. Nine out of 10 advanced economies will likely decelerate, Gourinchas said. The US' growth will slow to 1.4 percent in 2023 as Federal Reserve interest-rate hikes work their way through the economy. Euro area conditions are more challenging despite signs of resilience to the energy crisis, a mild winter, and generous fiscal support, he said. With the European Central Bank tightening monetary policy, and a negative terms-of-trade shock due to the increase in the price of its imported energy we expect growth to bottom out at 0.7 percent this year, Gourinchas wrote.
Source: Business-Standard
INTERNATIONAL
To loosely quote Marcus Aurelius, “Looking back over the past, one can foresee the future.” This same idea applies to fiber research and development. For insight on where fiber developments might go in the future, the best indicator is the past. There is no crystal ball and no way to truly predict the future, only a “guess-o-meter.” But the past suggests possible future direction. Some developments are more near-term and less of a leap of faith, while some other developments are longer-term projects that may or may not come to fruition. The distance between a great idea and commercialization is very long and unfortunately there is a lot of opportunity for things to go wrong. Sometimes, the greatest ideas just don’t pan out. If we compare the fiber industry of today to that of 20 to 30 years ago, not much has changed. Today, polyester is still king and poly/cotton blends are still woven and knit into fabrics. Some 20 to 30 years ago, perhaps people thought everyone would be wearing nonwovens in a few decades and that hasn’t happened yet, although it still eventually could. Obviously, research and development is ongoing and things that are in development today will change the face of the industry in the next few decades. But it’s important to remember that change is slow and in probably the next 20 to 30 years things that are important now are still going to be important in the fiber industry. Also, the big developments that have taken place have mostly been on the margins. If history is a straight line — and of course it never is — but if the future is like the past, then the margins are where most of the new developments will remain. If that’s the case, then why focus on those innovations? The answer is because that’s where the money is. Even if a company is working on a development that is going to remain in the margins, it’s where producers can make money instead of competing solely on price and volume. It’s one of the reasons why companies chase innovations and new developments. There also is always the dream that not only can research create something that is profitable, but perhaps it will result in a “new polyester” that fundamentally changes the industry. Polyester has been king for decades, but it didn’t exist 100 years ago, and change will happen eventually.
Bicomponent Fibers
Bicomponent fibers are not new, but one of the still untapped uses is in binder fiber applications. There is new technology coming online that will allow for expanded performance of binder fibers. People are fairly familiar with standard binder fibers. With new polymer developments, there are new melt temperatures available to tailor the fiber to the application. The ability to chose between an amorphous or a crystalline binder also can better tailor a product to do the job that’s needed. In addition, one newer possibility is a binder that will bond the fabric together initially and then at whatever time is needed for the application, the bonds may be released. Those are potentially near-term possibilities in binder fiber innovations. Taggant technologies are another currently available bicomponent technology that is underutilized and there is a lot of value in these type of fiber technologies. An identifier like a 2D barcode can be created, or materials can be used that light up the fiber when viewed using different wavelengths of light. A 2D barcode provides a lot of information where forensic approach of sorts is required to determine the cross section and extract the information in the barcode. In comparison, a tag that is revealed using a certain wavelength of light is more of a simplistic, binary technology that only identifies the fiber if it’s present. There’s not a whole lot of information in this type of tag, but it can be useful in certain applications such as a point-of-sale scan. It’s possible in the future some sort of taggant technologies may be required in order to have downstream accountability. Such applications offer a way to extend bicomponent technology beyond where it is today. Using a DNA additive is a newer approach to these taggant technologies. DNA can be inserted into a fiber now that contains a lot of information similar to the 2D barcode. One advantage of using DNA is extracting the information is more straightforward and forensic methods aren’t necessary. This technology is not cheaper, but a more straightforward way of embedding lots of information into a fiber. Beyond taggants, splittable fibers also offer some expansion possibilities for bicomponent fibers in the market. When producing spun yarns, microfibers pose a problem in the carding machine. However, with control of the cross section of a bicomponent fiber, the splittability of the fiber also can be controlled, which offers a way to incorporate microfibers into spun yarns. The splittability property is important because carding processes are all different, and the design and application may require a different mix of splittable microfibers and non-microfibers. With all of the different cross sections that can be produced in combination with the many different types of polymers available, it is possible to manufacture a really broad range of splittable fiber.
Cardable, splittable bicomponent fibers include:
With a range of splittabilities, it’s possible to tailor a fiber to a process and card a blend where the bicomponent fibers split during carding. The caveat is that there has to be some non-splittable, non-microfibers in the fiber mix to carry all the fiber through the process. But this technique allows microfibers to be blended in spun yarns. This expansion of bicomponent fiber applications may require some additional downstream work, but it’s a fairly low hanging fruit that is available and ripe for development in the short-term.
Environmentally Advantaged Fibers
Another short-term development on the fiber future “guess-o-meter” is environmentally advantaged fibers. The term “green” fiber can mean many different things, and there is much more to “green” fibers than just sustainability or carbon dioxide mitigation including microplastic concerns, toxicity and landfill issues. Different fiber technologies address different environmental concerns and the term environmentally advantaged is a fitting term to use to cover many scenarios. One of the first things that is already underway is an expanding role for natural fibers. It’s clear from a consumer’s point of view that these fibers are greener than a plastic. However, despite demand, natural fibers are not 100-percent of what is used in textiles because they don’t deliver the properties that polyester in particular delivers. For use of natural fibers to expand much more than it has already, there may need to be some work done to chemically modify the fibers to expand their property envelope. Also, at some point in the future, there will be a debate about whether to use our land to produce something that isn’t food. Producers of polylactic acid (PLA) fibers already have seen some push back on the polymer because they are using corn and are therefore consuming some of the food supply. So, the expansion of natural fibers may hinge on the question “fibers or food?” Ultimately the battle — if it is even a battle — between natural and synthetic fibers is going to be one that is potentially limited by the evolution of plastics. There is a lot of work taking place in the plastics industry to address some of the environmental problems that plastics present, and solutions are becoming compelling. Not many of the solutions are cost effective yet, but at least technologically there are a lot of answers to environmental issues. The speed of development and the ultimate cost of new solutions may very well may limit the impetus to focus more on natural fibers. One newer technology developed in the plastics industry that delivers a lot of bang for the buck is degradation enhancing additives (DEAs). CiCLO® is one such technology offered by Intrinsic Advanced Materials, a joint venture between Intrinsic Textiles Group and Parkdale Advanced Materials. There are other technologies in the market, and they work in basically the same way. When DEAs are added to just about any plastic, the material will degrade in a microbe-rich environment in two to three years and not in 200 or 300 years. One of the appealing things about these technologies is the relative low cost compared to biopolymers, which are often sought after to solve environmental issues. Biopolymers offer a lot of technical advantages, but none of them is cheap. DEAs are relatively low cost and can be put into a product right away. Another big advantage is that biopolymers require a significant sacrifice in properties in the application or processing, or both. DEAs allow an environmental benefit at low cost, quickly with essentially no sacrifice in properties. In addition, some biopolymers require composting to degrade, and DEAs allow a fiber to degrade in any microbe-rich environment without requiring composting. One drawback is that the degradation may not occur as fast as it does in some of the other polymers such as PLA. But there is a compelling proposition for the use of DEAs when comparing a product that degrades quickly but is expensive and costs a lot in terms of properties versus a fiber with DEAs that doesn’t degrade right away, but degrades in a couple of years versus centuries and the technology exists today. DEAs likely will become an important technology in a fairly short amount of time. Polyethylene furanoate (PEF) is a new biopolymer being developed primarily by Avantium in the Netherlands, among other companies. PEF is an exception in the biopolymer world because choosing biobased ingredients does not mean sacrificing fiber properties as it does with other biopolymers. Fully biobased polyethylene terephthalate (PET) is not yet a reality because biobased ethylene is an available feedstock, but the terephthalate part is really tricky. In PEF, the furanoate monomer — 2,5-furandicaboxylic acid — combines with biobased ethylene glycol to make a polymer that is very similar to PET, but the furanoate monomer also is biobased so the resulting PEF polymer is 100-percent biobased. The fiber has some natural degradability, but is not spontaneously biodegradable, which is useful because many applications require durability. PEF is inbetween the two extremes — it doesn’t degrade right away, but it can be made to degrade if necessary. The fiber properties are comparable to polyester, but the fiber is biodegradable in the medium-term and may be recycled in typical PET recycling streams, which is a significant advantage. Another upside is that PEF may be produced in an existing PET plant. The reaction kinetics are different, but fundamentally, manufacturers just need to swap the terephthalate monomer for the furanoate monomer. In addition, PEF in particular would be a good polymer to use in combination with DEAs. One drawback to PEF is its cost. This is due in part to the fact that it’s early in the development stage, so the price will come down. Avantium has shared projections for the cost, and it is predicting that with scale the price will be comparable to PLA, maybe a little higher. But that is a significant premium, which has frankly hampered the adoption of PLA in mass markets. On the price front, there are other reasons to believe the cost will get to an acceptable level. Some research is taking place to develop a polymerization process that may cut the cost of making PEF to about 20 percent of what it is now. In addition, the oxygen barrier of PEF is fantastic. This property means nothing in fibers, but is very important in the plastic bottle market. Coca-Cola, among other companies, is investing a lot of money to develop bioplastic bottles, which will drive the development of PEF. The other option is to make a 100-percent biodegradable PET, which can be done, but it’s expensive and despite large investments that nut has not yet been cracked. And with the property differences in mind, PEF has a chance to be the winner over biodegradable polyester. If it is, the volumes will be enormous and the cost will be driven down. PEF is a fiber to watch. The research is not quite there yet, but the first pilot scale plant is in the works. Polyhydroxy alkanoates (PHAs) is another class of biopolymers that bears watching. They are still not quite ready for prime time as a textile fiber, but the technology is getting closer to commercialization. PHAs have many advantages over some other materials. They are 100-percent biobased and are spontaneously biodegradable. As previously mentioned, it’s an advantage that PEF has some durability to it — that’s something that will be desired in many applications. But there are other applications where spontaneous degradability is important. Anywhere there are microbes, PHAs will degrade. That doesn’t mean it will degrade hanging in the closet. But when left on the ground, degradation is quick; and the polymer is also marine degradable, which makes it a promising solution to the marine plastics and microplastics issues. PHAs are likely to be available at relatively low cost at scale — possibly even cheaper than polypropylene, which is a tremendous advantage over other biopolymers. PHAs also can be made from just about any biomaterial or carbon dioxide so sugars from corn or other food sources are not impacted. Factories can even use carbon dioxide captured by a scrubber on a smokestack as the raw material for a PHA — how green is that? PHAs are not quite there yet in terms of processability, but this is chemistry base that has wide tailorability. There are many ways to tailor the properties of the polymer, and this, plus the compelling environmental advantages, will hopefully drive development forward to a solution. Chemical recycling also is potentially a big deal in the environmentally advantaged fibers category. Years ago, BASF looked into depolymerizing nylon. Back then, it wasn’t an environmental issue, it was more cost-driven research, but the company determined it was cost prohibitive. It’s interesting to see renewed activity in this area today. Polyester and polypropylene recycling plants are being built many places in the world now, and it’s hard to imagine that kind of capital would be invested unless it was going to be a profitable endeavor. Chemical recycling also eliminates downcycling so conceivably a polyester can be recycled eternally. There is a debate about recycling versus using biopolymers because recycling seems so simple — it’s just a mechanical process — and biopolymers seem more exotic and advantageous. But in terms of delivering an environmental advantage, recycling, in the right context, can be more powerful than a polymer that easily degrades. In the future, there will be a lot more focus on chemical recycling efforts.
Electrical Applications
There are things that can be done with fibers and textiles that haven’t been adequately developed yet, including electrical applications. Electrically functional apparel — adding wires to textiles — has been in development for some time, but it hasn’t yet taken the industry by storm. But innovation is ongoing, and it is likely the challenges will be resolved. More so, electrically activated substrates hold a lot of promise and could be very useful. Think about an electrical stimulus activating motion in a substrate, for example. Or other types of activation include photovoltaic textiles that may be useful in garments, window blinds or roofing substrates. Such technologies also could be used to create foldable or rollable display screens that would eliminate the need for a separate projector. This sort of technology is not something that could be produced tomorrow – a lot of work and investigation would need to go into how exactly it would work – but materials are available that are appropriate for the job, and there is enough value there that the research is worthwhile. Textiles also can be conductors. There is one naturally conductive polymer, a polyaniline, that has limited conductivity. But the fact that it exists suggests that there could be development work done to create a more conductive fiber that is more valuable than the currently available polyaniline. Conductive fibers also can be created using conductive additives such as carbon nanotubes, or by using vapor deposition technologies. Carbon nanotubes may be used to produce a yarn that is more conductive, but what’s most interesting is that single wall carbon nanotubes are not just conductive, they are super conductors. If these microscopic carbon nanotubes could be embedded in a matrix of polyester, for example, and it was possible to make something with practical length, these new materials could offer a lot of value as super conductors. It is possible to deposit metal on polymers — for example, silver deposition on nylon — but those fibers get very expensive because of the amount of silver that is involved. However, silver cannot be deposited on polyester using the same process used to deposit silver on nylon. So, imagine a bicomponent fiber with just a sliver of nylon running throughout. Silver could be deposited only on the nylon to create a fiber that offers 100 percent of the conductivity for a fraction of the cost. Further for the electrical applications, polyvinylidene fluoride is melt extrudable so it can be made into fibers. And when stretched and drawn during production in a properly oriented electrical field, the result is a fiber that is piezoelectric. There must be value in a piezoelectric fiber for use in sensors, actuators or synthetic muscles as just a few examples. This is an untapped, valuable opportunity in the fiber arena waiting for someone to find a solution.
Solvent-Spun Protein Fibers
Moving into another territory with regards to fantasy future fibers, are solvent-spun protein fibers. The horizon in this category is almost limitless. The goal is to use proteins and solvent spin them — ideally using water as the solvent to ensure an environmentally safe process — to make something similar to a synthetic spider silk that has all the properties you could ever want in a fiber — lightweight, strong and with stretch.
There is lots of research in this area and things are getting closer to commercialization every day. Once a solution is found to produce a commercially useable protein fiber, spider silk is just the beginning because there is an entirely new landscape of chemistries to work with that offer an enormous range of new properties. Not just improved properties, but different properties. The field is ripe for picking if the fundamental technology can be mastered. A Wallace Carothers moment in protein fibers is needed, and once that happens, a whole new world will open up that could completely change the fiber landscape in a way not seen in the past 20 to 30 years.
The Third Dimension
Almost maxing out the future “guess-o-meter” are 3D fibers. Innovation first mastered one dimension — how long a fiber is — and that was the only variable. Then research made it possible to control variation in the second dimension to produce bicomponent fibers and non-circular cross sections. But examining the third dimension in fibers may bring lots of value. For example, perhaps it’s possible to change the way a fiber is shaped or its composition along the length — so there is one cross section here and a different cross section further along; or you have one material here and then another material or different combination of materials further along the length. Maybe in 20 or 30 years the industry will be closer to producing such fibers. One possible application is in synthetic goose down. Goose down, which has little barbules along the length, is one of the most expensive fiber products there is. When a goose down batting is compressed, the barbules catch on perpendicular fibers and the fiber bends instead of pushing past. When pressure is released, the down expands back and insulative properties are maintained. A synthetic goose down would be a valuable product, but the technology first has to exist to change the shape of the fiber along the length. This is just one view of where the future may lie in fibers if the “guess-o-meter” is correct. It might work out that way, or it might not, but past development suggests future direction.
Source: Textile world
The ongoing dollar shortage in the banking sector is posing a threat to local textile millers and spinners as they are in trouble in opening letters of credit (LCs) to import raw materials and cotton to feed the country's readymade garment industry. It comes even after international retailers and brands have placed 25 per cent fewer orders for readymade garment items for the October-April season that have translated into a significant fall in orders for the primary textile sector. Owing to the crunch of the American greenback, most of the local banks are currently taking 10 to 15 days more compared to the usual time in the case of opening the LCs. This may affect the import of raw materials such as cotton, dyes chemicals, viscose and staple fibre vital for manufacturing garment items sold in the export markets. Also, primary textile millers, which have already seen an investment of more than $20 billion to serve the growing apparel industry, aren't running at their full capacity. Because of the US dollar shortage driven by escalated import bills against lower export and remittance receipts, the Bangladesh Bank has tightened rules to discourage the imports of non-essential and luxury items in order to save the foreign currency reserves from fast depletion. So, the opening of LCs aimed at importing textile fabrics declined by 25.63 per cent year-on-year to $4.88 billion in the July-December period of the current financial year, central bank data showed. The LC opening for raw cotton dipped by 41.64 per cent to $1.02 billion. The opening of LCs to buy cotton yarn, synthetic fibre and yarn also fell sharply during the first half of the fiscal year. Saleudh Zaman Khan, managing director of Bhulta-based NZ Tex Group, which mainly produces yarn from cotton and other man-made fibres, says before the dollar crunch emerged, banks used to take a maximum of three working days to open an LC. Foreign banks operating in Bangladesh are taking two or three days to open LCs as they have the dollar. Local banks with a strong foundation are taking five to seven days. "But the banks that are suffering from the shortage of US dollars are taking 15 to 20 days and in some cases, 30 days to open the LCs," said Khan. Banks, however, are prioritising export-oriented garment factories. Khan's factory has far been immune to the dollar crunch as the garment exporter can open LCs as its bank has set aside the American greenback for it against its export receipts. Md Abdur Rouf, executive director at Simco Spinning & Textiles, says the import of some fibre is getting delayed. A miller has to import at least 25 per cent of the raw materials it consumes. Owing to the raw material shortage, Simco Spinning is producing seven tonnes of yarn daily, down from its capacity of manufacturing 20 tonnes of yarn. "We are facing two problems. On the one hand, we are facing difficulties in opening LCs. On the other hand, local garment manufacturers are delaying making payments against back-to-back LCs," said a spinner, asking not to be named. Two distinct LCs are used in back-to-back LCs: one is given to the intermediary and issued by the buyer's bank while the other is issued by the intermediary's bank to the seller where the seller is a beneficiary. The first LC serves as the collateral for the second one. Khorshed Alam, chairman of Little Star Spinning Mills Ltd, says he has been trying for nearly a month to open an LC worth $1.1 million to import raw materials and spare parts. The mill produces yarn to make saris and lungis to be sold during Ramadan. "The multiplier effects of the delay in opening LCs on the local primary textile sector will be felt after three to four months if the situation does not improve soon." Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, the apparel exporters' platform, says orders fell by nearly 25 per cent for the October-April season. Abdullah Al Mamun, vice-president of the Bangladesh Textile Mills Association, the platform for the primary textile millers, says orders in the textile and spinning mills fell more than 25 per cent between July and December compared to a year ago. "If the LC opening situation persists, the sector will face the crisis of raw materials," he warned.
Source: The Daily Star
The Minister of International Cooperation, Rania A. Al-Mashat, discussed the expansion of development finance with the International Finance Corporation (IFC) to increase private sector participation in Egypt. The Minister pointed out the importance of expanding the scope of cooperation between the IFC and private sector companies in Egypt through credit lines to banks to promote the development of small, medium and micro enterprises (SMEs), in addition to the availability of green bonds, to increase investments in various fields. Al-Mashat explained that the Ministry of International Cooperation works to advance partnerships between international financing institutions and the private sector in order to accelerate the implementation of the country's vision aimed at increasing private sector investment and its role in development. For his part, Aliou Maïga, IFC's Regional Director for the Financial Institutions Group (FIG) in Africa, pointed out the importance of the Egyptian market for the IFC, and the corporation's keenness to consolidate ways of cooperation in order to provide more financing mechanisms for the private sector in Egypt. Both agreed to make further efforts to familiarize the private sector and Egyptian banks with the financing instruments available from the IFC for the private sector. In 2021, the IFC financed the first green bonds for the private sector at a value of $ 100 million, from which the Commercial International Bank (CIB) in Egypt benefited. In a related context, the Minister discussed with IFC officials the expansion of technical support and consultancy efforts to the private sector, in support of the ongoing portfolio of consultancy and technical support of $32.4 million, in the areas of electricity, private sector development, environment, governance and gender, finance and insurance, transport and storage, wholesale and retail trade, textiles and clothing, and others. The two sides discussed the state's efforts to stimulate the green transition, expansion of green buildings and clean energy transition with the participation of the private sector as a key development partner.
Source: Egypt today
The European Commission has launched a new campaign – ReSet The Trend – which aims to engage Europeans in the battle against fast fashion and raise public awareness about the EU Strategy for Sustainable and Circular Textiles. Under the motto #ReFashionNow, the multilingual campaign attempts to promote the environmental, social, economic and health-related benefits of transforming the textiles sector and the opportunities that more sustainable fashion opens up for both businesses and consumers. ReSet The Trend points out that millions of tonnes of clothes are produced, worn and thrown away each year, equivalent to 11.3 kg per person, with the equivalent of a lorry load of clothes being burnt or buried in landfill every second.
Source: The mail.google.com
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When the Russia-Ukraine war broke out in the beginning of 2022, growth in the apparel market started slowing down. By June, it was clear how bad the situation was as our orders were stuck because of global political factors and rising energy costs. Our LNG supply had been interrupted, but from June, it dropped drastically. About 30-50% production dropped and cost of production went up. Our products lost market value and we even had to sell off our stock at the price of raw materials. But on the other hand, we are now seeing that the global political situation is slowly improving. So even though 2023 is not starting out well, we believe it will get better by the end of the year. For instance, the Russian chain stores that shut down are reopening under different brand names. This means demand is not falling, which is good news as we just want our fabrics and apparels to be sold. And there is no alternative to Bangladesh in terms of last moment order fulfilment. Bangladesh, in terms of cotton yarn, is 100% self-sufficient. Vietnam for example, does not have that, maybe they are more advanced in manmade fibre. Asia is leading the apparel supply chain, and Bangladesh is leading in knit fabrics, cotton yarn and denim in Asia. But to maintain this position, we need uninterrupted gas supply. If we do not get that and if gas prices are raised every year, then it will keep hampering production. So our cost of production will also keep going up. This will, in turn, intensify competition in the global market. So, 2023 will be a year of high competition, and only if Bangladesh Bank and the government support us the way they supported us before with policy, uninterrupted gas supply, and the EDF, will we be able to overcome it. The government has said that no new EDF will be given. The EDF fund gave us access to Tk70,000 crore, but the substitute fund is only one-seventh that. So, 2023 will be a very scary year for the industry. We have already sent a letter to the authorities regarding the EDF. We hope the government will reconsider expanding the substitute fund to Tk70,000 crore from Tk10,000 crore. We are getting orders again and Bangladesh is prepared to fulfil orders worth $100 billion. If we needed Tk70,000 crore for $44 billion apparel exports, then we obviously need more support for $100 billion export. In 2023, we have a $60 billion export target, and by 2030, we want to take it to $100 billion. But that will be difficult to achieve with this substitute fund. In recent times, the lending interest rate has started going up to 12%. That was one of the reasons our GDP went up. Of the $400 billion economy of Bangladesh, industries contributed 32.31%. Of that, 84% was by the textile and apparel sector. We are making clothes for 16 crore people at home. If we had had to import those clothes, it would have cost us $9 billion. Instead we just import the cotton and locally add $6 billion to $7 billion in value. Our retained earnings from this sector is an estimated $21 billion. Yet many of our experts say that our sector does not add enough value and that not supporting us is okay. But what if we had to import clothes? Now that we do not have to do it, we can use our export dollars to purchase other necessary goods. Moreover, the dollar rate differential causes us to lose money as well. A Tk7 differential means that bringing in Tk100 crore sees us losing Tk7 crore. The differential should be maximum Tk1 or else banks will be the lone gainers. Moreover, the 19% tax for back to back L/Cs for trade with local suppliers is unfair. How will the industry survive with that? How will we pay for cotton with dollars? Without dollars, banks won't let us open LCs. And when we don't have dollars, the backward linkage industries will die, and then RMG will die.
Source: Tbs news
