A Budget for India in the Amrit Kaal
A new dawn beckons the Indian textile industry
Budget will trigger growth, say textile bodies
Budget 2023: Growth-oriented, with aim to set India on the right course
Budget proposals to help boost India's exports: Piyush Goyal
Budget 2023: Many PLI schemes are in the pipeline, says Piyush Goyal
INTERNATIONAL
China reconnects to world in every field after COVID despite lingering Western smears
Mexico to expand trade with Bangladesh
EU’s textile waste and used clothing in Pakistan
Pakistan’s textile industry is in crisis – and women are bearing the brunt of its decline
NATIONAL
One of the keys to unlock India’s growth potential is raising private investment. This year, the finance minister has more than delivered through a transformative Budget. The focus on capital expenditure, sunrise sectors, technology and green growth will boost our long-term growth potential. First, the sustained focus on capex must be lauded. A 33% increase in expenditure will take capital expenditure to Rs 10 trillion in FY24, compared to Rs 7.5 trillion in FY23. The railways will see record capex of Rs 2.5 trillion. Furthermore, 100 critical transport infrastructure projects, for both first and last mile connectivity, will be taken up on priority. Regional air connectivity saw a huge boost through 50 additional airports, heliports, water aerodromes, and advance landing grounds. The newly established Urban Infrastructure Development Fund will enable us to build the cities of tomorrow. The credit guarantee scheme for MSMEs has been revamped, with a Rs 9,000 crore infusion. This will enable collateral-free guaranteed credit of Rs 2 trillion. Second, by revising tax slabs, the Budget gives a fillip to domestic consumption by putting more money in the hands of people. As domestic consumption rises, so will domestic capacity utilisation, leading to higher investment to meet the additional demand. Skilling has been given a stimulus through the launch of Pradhan Mantri Kaushal Vikas Yojana 4.0, the unified Skill India Digital Platform, and providing stipend support to 47 lakh new apprentices. Increased capex and tax reforms have been complemented to ease India’s business environment. Using the PAN as a common identifier for businesses, an entity digi-locker, simplified KYC processes, and a unified filing process will reduce the compliance burden. Tourism has also been given due focus, with 50 destinations to be developed as complete packages under challenge mode. States will be encouraged to set up Unity Malls, giving a fillip to one district one product (ODOP), handicrafts, and GI products. Third, the focus on sunrise sectors of growth and technological transformation is admirable. The setting up of centres of excellence (CoE) for artificial intelligence (AI) will help scale AI-led solutions for India’s pressing problems. The announcement of the National Data Governance Policy is also a major one. With access to anonymised data, startups and academics can build innovative products and conduct cutting-edge research using tools like data analytics. Establishment of 100 5G labs will open new opportunities and businesses. The support to battery energy storage systems is another key initiative. The inter-state transmission system and grid integration of renewable energy from Ladakh will be constructed with a total outlay of Rs 20,000 crore. Another key announcement is the establishment of digital public infrastructure for India’s agriculture sector. With the newly announced agriculture accelerator fund, agriculture in India will witness a technological transformation. Fourth, focusing on green growth is a key feature, with Rs 35,000 crore being provided for capital investments, furthering our energy transition and net zero aims. The Green Credit Programme will be launched to incentivise environmentally conscious actions by companies, local bodies, and individuals. To promote soil health and agriculture productivity, PM Pranam has been launched to incentivise states and UTs to promote balanced use of chemical fertilisers and use of alternative fertilisers. Further, a target of 1 crore farmers practicing natural farming has been set. Finally, maintaining fiscal discipline while delivering on increased capex and tax breaks is the highlight. A glide path has been set with the fiscal deficit set to come down to less than 4.5% of GDP by FY26. With government borrowings moderating, private investment will be further crowded in. With robust public finances, capex, and a consumption push, India is set to enter a virtuous growth cycle. The Budget must be lauded for ensuring growth across the board. It provides a solid foundation as we look to transform India during Amrit Kaal. The writer is India’s G20 Sherpa, and former CEO, NITI Aayog
Source: Financial express
2023 has dawned with bright hopes for the Indian textile industry. The industry seems to be headed towards a positive steady growth phase, after a period of turbulence and uncertainty. With a world that is hopefully coming to the end of the pandemic, things are looking up for the textile industry. This buoyant mood stems from the series of measures taken by the Union Government to revive the fortunes of the textile industry. These measures ranging from giving a push to technical textiles to the PLI scheme, launch of mega textile parks to signing of FTA’s and MoU’s with many countries, etc., the initiatives are aimed at catapulting the fortunes of the Indian textile industry, to new heights.
Fillip to technical textiles
Technical textiles have created a buzz among the Indian textile fraternity. The government has identified this segment as a growth enabler and providing the necessary push to the segment. The National Technical Textiles Mission (NTTM) has been approved with a four year implementation period from FY 2020-21 to 2023-24. The aim is to increase the domestic market size from USD 40 billion to USD 50 billion by 2024 and position India as a global leader in technical textiles. Under NTTM, 74 research proposals valuing Rs.232 crore have been approved in the category of speciality fibre and technical textile. Other steps taken include development of 31 new HSN codes. The Synthetic & Rayon Textiles Export Promotion Council, has been assigned the role of export promotional council for technical textiles. Another step taken by the Ministry of Textiles towards positioning India as a global leader in technical textiles manufacturing is the invitation of Research proposals for Funding for Design, Development and Manufacturing of Machinery, Tools, Equipment, and Testing Instruments under NTTM. At present most of the machinery, equipment, plants and accessories meant for the manufacturing of technical textiles is being largely imported. In order to make the country self-reliant in the field and truly ‘Atmanirbhar’, NTTM under Component-I (Research, Innovation and Development) envisages indigenous manufacturing of machinery, equipment, tools and testing instruments for technical textiles. The indigenous development of latest machinery and equipment is expected to play a key role in driving forward India’s technology readiness levels in the manufacture of technical textiles.
PLI Scheme
For the textile industry which was grappling with downturn caused by the Covid pandemic and subsequent fall in demand, the Production Linked Incentive (PLI) scheme announced by the government with an outlay of Rs.10,683 crore has come as a shot in the arm. The approved outlay is for promoting the production of MMF apparel, MMF fabrics and technical textiles in the country. A total of 67 applications have been received through the PLI web portal from 01.01.2022 to 28.02.2022. The Selection Committee chaired by the Secretary, Textiles has selected 64 applicants under the scheme. 56 applicants have completed the mandatory criteria for formation of a new company and approval letters have been issued to them. Investment to the tune of Rs. 1536 crore approximately has been made so far under the scheme.
Textile parks
Another key step that the government has taken towards providing growth momentum to the textile industry is the PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks. These parks which will offer world-class infrastructure have been approved with an outlay of Rs.4, 445 crore for a period up to 2021-28. The guidelines in respect of scheme have been published and there have been multiple interactions with State Governments for inviting proposals. In response 18 proposals from 13 States have been received. A National Conference was organized on 04.05.2022 for discussion on proposals with the Senior Officers from State Governments and Industry Associations. Evaluation of proposed PM MITRA park sites was done through ‘Gati Shakti’ portal to understand locational advantage. As of now detailed scrutiny for selection of sites is underway.
Employment generation
The Indian textile industry was always known for its employment generation capabilities. A slew of schemes announced in recent times are expected to further increase employment opportunities in the industry. According to Darshana Jardosh, the Union Minister of State for Textiles, as per figures from National Accounts Statistics, the contribution of textile industry in GDP in terms of percentage share of industrial output was around 7% during the last three years. Direct Employment in Textiles sector is estimated at 45 million. Government is implementing various schemes/programmes to increase employment, investment and expansion of textile industry including modernization of weaving and processing including, Integrated Processing Development Scheme, National Handloom Development Programme, National Handicraft Development Programme, SAMARTH–Scheme for Capacity Building in Textiles Sector, Silk Samagra 2 & Scheme for Integrated Textile Parks, PLI|scheme, PM MITRA scheme etc.
FDI inflow
Foreign Direct Investment (FDI) brought investment of $ 1522.23 million in the textile sector from 2017-2022. Darshana Jardosh shares that, the Government has taken following steps to modernize the textile industry, enhance export and to promote FDI in textile sector on pan-India basis:
i) Government has approved setting up of Seven PradhanMantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with an outlay of Rs. 4,445 crore for a period of seven years up to 2027-28.
ii) Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs 10,683 crore, to promote production of Man Made Fibre (MMF) Apparel, MMF Fabrics and Products of Technical Textiles in the country.
iii) Government has allocated an outlay of Rs 1480 crore for the National Technical Textiles Mission (NTTM) to promote and develop technical textiles sector in India.
iv) Silk Samagra-2 scheme is being implemented from the year 2021-22 to 2025-26 for development of sericulture industry in the country.
v) Government is also implementing various schemes/ programmes such as SAMARTH- Scheme for Capacity Building in Textile Sector, National Handloom Development Programme, Raw Material Supply Scheme, National Handicraft Development Programme, Comprehensive Handicrafts Cluster Development Scheme, Integrated Wool Development Programme etc. to promote and develop indigenous textile sector.
vi) India has so far signed 13 Free Trade Agreements (FTAs) including recently concluded Comprehensive Economic Partnership Agreement with UAE and Economic Cooperation and Trade Agreement with Australia; and 6 Preferential Trade Agreements with various trading partners. Government has entered into negotiations for FTA with trading partners such as the United Kingdom, European Union, Canada for enhancing market access of Indian products, including textiles, keeping in mind the national interest and domestic sensitivities.
vii) Market Access Initiative scheme provides financial support to various Export Promotion Councils and Trade Bodies engaged in promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets etc.
viii) Government has put in place liberal and transparent investor-friendly Foreign Direct Investment (FDI) policy. 100% FDI is allowed in the textile sector under the automatic route. The amount of investment brought through FDI in the textile sector from 2017-2022 was US $ 1522.23 million.
MoUs signed
A series of MoU’s have been signed to give a boost to the textile industry in the country. These include:-
• MoU with National Agriculture Food Research Organization, Japan to promote collaborative research in the field of silkworm and silk industry.
• MoU signed between Central Silk Board and “Uzbekipaksanoat”, Uzbekistan on cooperation in Sericulture and Silk industry.
• MoU signed between Ministry of Textiles, Govt. of India and Department of Agriculture, Fisheries and Forestry, Govt. of Australia for establishing a Joint Working Group on cooperation in the field of Wool and Woolen products.
• MoU between India and Sri Lanka on procedural arrangements for import of apparel articles from Sri Lanka to India on Tariff Rate Quota under India Sri Lanka Free Trade Agreement.
• MoU between India and Sri Lanka on cooperation in the development of Small and Medium-sized Enterprises in handloom, powerloom and textiles.
• MoU signed between Textiles Committee, Govt. of India and M/s Nissenken Quality Evaluation Centre, Japan.
• Government is implementing various schemes such as PM-MITRA, PLI, NTTM etc. for undertaking numerous technology centric approaches for increasing production in the textile sector all over the country.
Sector wise scenario
Efforts have been made to enable growth momentum in key sectors, namely, silk, jute, cotton, wool, handloom and handicrafts sectors. Let us take a look at the initiatives one by one.
Silk Sector
The total Raw Silk production was 28106 MT. R&D projects numbering 44 were initiated and 23 were concluded with the achievement of training 9777 persons in various activities related to silk sector.
Jute Sector
JUTE-ICARE (Improved Cultivation and Advanced Retting Exercise) Scheme: covers 170 jute growing blocks with 1, 89,483 hectare had benefitted 4, 20,309 jute farmers. Export Performance has improved due to Market Development & Promotion Scheme (MDPS) as export performance rose by 38% from the last year with current value at Rs. 3786 crore. The value of exported Jute diversified products is Rs. 1744 crore with increasing trend by 46% from the last year. A total quantity of around 26.87 lakh bales of jute bags worth Rs.9.80 thousand crore (approx.) have been indented.
Cotton Sector
Cotton cultivation has been increased by 5% to 125.02 lakh hectare as against 119.10 lakh hectare during last year. Brand named ‘Kasturi Cotton India’ for Indian cotton has been launched and to encourage mechanized harvesting of cotton, improving quality of cotton and to reduce labour cost. Further 75000 hand held kapas plucker machines are being distributed.
Wool Sector
Projects to Animal/Sheep Husbandry Dept., Leh have been approved of revolving fund of Rs.2 crore for procurement of pashmina wool, distribution of 400 portable tents to Nomads of Leh in order to improve living conditions. Further construction of 300 Predator proof corrals for safety of pashmina goat along with project to procure 50 sheep shearing machines for Uttarakhand.
Handloom Sector
Financial assistance of Rs.76.60 Crore has been provided to 91 Handloom Clusters. 1,109 weavers provided improved looms and accessories under HSS. Skill up-gradation training was imparted to 2,107 handloom workers under Handloom Clusters of National Handloom Development Programme. Assistance amounting to Rs.18.49 crore has been released for 141 marketing events. Moreover assistance of Rs.10.40 crore has also been released for various activities sanctioned to Mega Handloom Clusters under Comprehensive Handloom Cluster Development Scheme. 102.05 lakh kg of yarn was supplied under transport subsidy component, 73.79 lakh kg of yarn supplied under-price subsidy component and total of 175.84 lakh kg of yarn supplied under Raw Material Supply Scheme (RMSS).
Handicrafts Sector
A total of 272 marketing events were organized, benefiting 19330 artisans. ‘Pahchan cards’ were issued to 30 lakh artisan and uploaded on public domain. 52 artisan Producer Companies were formed and supported. 418 training programme and Design workshops were conducted benefiting 12480 artisans. Modern Toolkit were distributed to 13579 artisans. Shilp Guru & National Awards for the years 2017, 2018 & 2019 were awarded to 108 artisans.
Source: Indian textile magazine
Major textile bodies in the region on Wednesday welcomed the Union Budget by terming it as one aiming at strong and stable economic growth. President of Tirupur Exporters Association (TEA) K M Subramanian said the budget mentions the seven priorities "Saptarishi" that would trigger the economic growth. In a statement, he said the priority for infrastructure development would reduce logistics cost. He said he appreciates the focus given to green growth. While welcoming the increased allocation of Rs 900 crore for ATUF (amended technology upgradation fund) scheme for 2023-24 as against Rs 600 crore last year, Subramanian said he was hopeful that the increased allocation would help to clear the ATUF pending claims. However, there was no announcement on continuance of ATUF scheme in this budget and he was hopeful that government would announce it in the near future, he said. The focus on enhancing the yield of extra-long staple (ELS) cotton would help He welcomed the extension of the credit guarantee scheme for MSMEs with an infusion of Rs 9,000 crore, collateral for Rs 2 lakh crore loans to MSMEs, effective from April 1, 2023. In a statement, chairman of Southern India Mills Association Ravi Sam appreciated the thrust on inclusive growth and skill development that would help the labour- and capital- intensive textile industry. He thanked the government for considering the proposal submitted by SIMA and announcing a scheme for increasing the production of extra-long staple cotton. SIMA can match international ELS cotton varieties and would take initiatives to increase the production, he said. After introduction of BT technology only for long staple cotton, the industry started facing shortage of ELS cotton, he said. The industry requirement of ELS cotton is around 20 lakh bales while the country produces only 5 lakh bales and heavily depends on imports of superior quality ELS cotton, he said adding that this is an initiative towards the Aatmanirbar Bharat benefit for the whole textile value chain, including the cotton farmers. While welcoming the budget, chairman of Confederaton of Indian Textile Industry T Rajkumar said the setting up of an agriculture accelerator fund to encourage farm startups by young entrepreneurs in rural areas. The fund would help bring in innovative and affordable solutions, modern technologies to transform agricultural practice, and increase productivity, he said. The textile sector looks forward to attain skilled workforce and quick production of smart textiles, he said
Source: Economic times
UNDISPUTEDLY, THE UNION Budget is one of the most anticipated annual events. India has consistently embarked on numerous reforms bringing about structural changes. In my opinion, finance minister Nirmala Sitharaman rightly focussed on key factors that align with the larger vision of the government; boosting economic growth, employment generation, encouraging savings and investments, and fiscal consolidation. The government needs to be commended for keeping the fiscal deficit in line with the Budget Estimates of 6.4% of the gross domestic product (GDP). Buoyant direct and goods and service tax (GST) collections were the reasons for successfully keeping the fiscal deficit under check. Gross tax collections in FY23 have outperformed the Budget Estimates target by more than 10%. By assuring that the fiscal deficit will be reduced to 5.9% in FY24 and further reduced to 4.5% in FY26, the finance minister has shown that fiscal consolidation remains a focus area. The government’s measures to steadily increase the tax base, bringing in greater transparency and enhancing investor confidence are paying dividends. The government needs to be lauded for its Ease of Doing Business (EoDB) initiatives. According to the finance minister, over 39,000 compliances and 3,400 provisions have been reduced and decriminalised. The focus on the salaried class needs to be applauded. The government rationalised income taxes by extending the benefits of standard deduction and also by reducing the surcharge rate for high income earners from 37% to 25%. This measure will reduce the maximum tax rate from 42.7% to 39%. These along with other measures are aimed at boosting the Indian economy as rising disposable incomes will promote savings and aid consumption. Pradhan Mantri Awas Yojana (PMAY), which includes affordable housing, got a boost with an allocation of Rs 79,000 crore. A rapidly growing country like India with a large young population needs more homes at affordable price points which would enable more households to become homeowners. Another notable feature was the establishment of the Urban Infrastructure Development Fund that will be managed by the National Housing Bank. The aim is to create urban infrastructure in smaller cities. This is a laudable move as construction of housing and the development of surrounding infrastructure should go hand in hand. By significantly increasing the capital expenditure for the third year in row and by increasing it by 33% to Rs 10 trillion (or 3.3% of the GDP) over the previous year, the Budget has sent strong signals that India is equipped to absorb large amounts of investments. According to me, one way to ensure economic growth without spiraling inflation is to build infrastructure. Overall, this was an excellent Union Budget which aims to set India on the right course. Continual reforms have been a priority for the government that will help India achieve sustained economic growth and move towards a $5-trillion economy by 2025.
Source: Financial express
A number of measures such as tweaks in customs duties on certain products announced in the Union Budget for 2023-24 will help boost the country's exports, Commerce and Industry Minister Piyush Goyal said on Wednesday. He said that despite global economic uncertainties, India's goods and services exports together are registering nearly 14-15 per cent growth. "The world is seeing recessionary conditions and global growth and global trade is also expected to slow down. Despite that when we combine our merchandise and service exports, we are still at quite a sweet spot...We believe that we will close this year also at a double-digit growth in goods and services combined," Goyal told PTI. He said that merchandise outbound shipments will be "slightly less" as the whole world is overstocked, high inventories are there, and inflation has caused consumer demand to fall. "As the global economy recovers from these stresses, particularly of inflation, next year we hope to do better even in merchandise exports and the finance minister (Nirmala Sitharaman) has been generous with her budget allocations for the commerce and industry ministry. So I am quite confident that this will give a boost to our exports," he added. When asked about the tweak in customs duties on certain products, the minister said the finance minister has "intelligently" calibrated the duties both upward and downward. In the Budget, customs duty on lab-grown diamonds has been removed from 5 per cent earlier. Goyal said that seeds used in lab-grown diamonds (LGD) are essential raw materials which are processed in India and help us create high-quality LGD which have a large market. "LGD exports have grown multi-fold in the last 3-4 years and the industry tells us that there is a potential for adding nearly another 4x or 5x growth in the next few years," he added. Replying to a question on the announcement about continuation of concessional import duty on lithium-ion cells, the commerce minister said that the government is promoting domestic manufacturing of electric vehicles and these cells are an essential component. "Since we do not have domestic manufacturing (of these cells) as yet, it is essential to continue this concessional duty so that the cost of 2, 3, 4 wheeler EVS can be kept under control and low which will encourage faster adoption of EVs," he added. Sitharaman in the budget for 2023-24 proposed a cut in import duty on seeds used to make lab-grown diamonds with a view to boosting domestic manufacturing. The minister also announced that the government from April 1, 2013, will launch a revamped credit guarantee scheme for MSMEs with an outlay of Rs 9,000 crore.
Source: Economic times
In a post-Budget interview, Union Minister for Commerce and Industry, Food and Public Distribution Piyush Goyal talked to Shreya Nandi about production-linked incentive (PLI) schemes, the rationale behind a rejig in the Customs duty, and food subsidy, among other. Edited excerpts: There has been a lot of buzz around new PLI schemes. The finance minister has already provided Rs 1.97 trillion (for PLI schemes), plus Rs 76,000 crore for the semiconductor industry. So, as and when other PLI schemes get approved, the Cabinet is empowered to approve it. It doesn't need to go through a budgetary process the second time. She (the FM) regularly keeps allocating for PLI. The actual scheme approval is a Cabinet process and guidelines are a ministerial process. We came up with many PLIs and others will also come through the Cabinet. Many PLIs are in the pipeline. Can you explain the rationale behind the Customs duty rejig? I must compliment the finance ministry because it has gone into a great level of details while assessing the Customs duty. It’s not as if somebody with vested interest asked for a particular duty and got it done. Those days are gone and far behind us. Generally, this effort has been used to promote domestic manufacturing. Let’s say raw material had a Custom duty, and an intermediate product was coming in through a free-trade agreement (FTA) or some other route at zero duty. The Indian domestic manufacturers are at a disadvantage. So we’ve tried to reduce the duty on the raw material to ensure they get it without duty and can compete in the market. Suppose an intermediate product was coming duty paid and the finished product was through an FTA duty free. Then we reduced the duty on the intermediate product so that intermediate product, instead of finished goods, gets imported. We can then add value and create the finished product. So, the effort has been to see item by item products where we need to promote domestic manufacturing, and where we have capacities that are lying unutilised. This can help us give more jobs and more economic activity. Also, capital goods have been encouraged to come in duty free now, so that our domestic manufacturing capability can have a quality impetus. We need to align ourselves with world-class quality because goods produced in India can now no longer have two qualities–Indian market and export market. Regarding an increase in the Customs duty, toys for example, the amount of substandard material that has been imported into India at abysmally low cost is often under invoiced also. Do you think the Rs 1.97 trillion food subsidy allocated for the next fiscal year is adequate? We’ve done all our maths, and made it all free now. So the consumer has to pay nothing under the Pradhan Mantri Garib Kalyan Anna Yojana. Last year we, of course, gave additional food grains because of the economic distress and the Covid situation. The Economic Survey mentioned that the external climate for exports is not very conducive, and in the next fiscal year, the growth can be flat. Where do you think the push will come for exports in this Budget? We’ll have to look at it sectorally. Clearly, the international situation is challenging. Despite that, we continue to be at about 8 or 9 per cent growth in merchandise exports in the current fiscal year, which is phenomenal considering that global trade is growing barely at 1 per cent. We continue to have almost 20 per cent growth in services, which is a big credit to our talented young boys and girls and, particularly, our IT sector. Also, it reflects that tourism is another area where this government’s focus is giving us rich dividends. Many of you may be aware that tourism provides the maximum number of jobs for every rupee investor. There was an expectation that a few thousand crores will be announced in the Budget regarding the district as an export hub scheme. That will be done through the Cabinet process. Once the scheme is finalised, it will then be converted to Cabinet approval and then for funds approval.
Source: Business-Standard
INTERNATIONAL
After three years of the COVID-19 pandemic, global businesses were glad to see Chinese visitors once again arriving at their local tourist attractions and shopping malls over the just concluded Spring Festival holidays. The recovery of Chinese outbound tourism has injected strong vitality to overseas tourism and consumer markets, industry insiders commented. While the mainstream international community has welcomed China's optimized domestic COVID-19 response, and embraced its increasing external exchanges and communications, a few people in the West are, however, trying to hinder China from further connecting to the world. Apart from the highly criticized entry restrictions imposed by several countries reportedly targeting Chinese visitors, observers have seen some Western media outlets pointing fingers at China's COVID policies. They claim that the optimized measures implemented by the country, which intend to better reconnect the globe, may instead lead to the country's "disconnection" or "isolation" from the world. Behind such ridiculous claims, some Western media sources, by fear-mongering that inbound Chinese visitors may cause new infection waves locally, have attempted to depict China's recent COVID policy move as "unwelcome" and "unaccepted," analysts told the Global Times. In sharp contrast to the Western sources' accusations, China has been in close contact with the world in various fields in recent years, and now the COVID policy optimization is bringing better opportunities for further cooperation. Many Chinese and foreign nationals reached by the Global Times said they are actively resuming exchanges. "The Western media's coverage of China is mainly negative, but we business people are not media guys; we are rational," said textile exporter Xu Yihong, who flew to Japan to negotiate with Japanese clients in December 2022 with the help of the Chinese local government. "No matter what they (Western media sources) have said, we continue to focus on facts," Xu told the Global Times. "My international clients and I maintain excellent communication."
Embrace the world
From government officials to busy businesspersons to culture and art industry practitioners, China has been actively embracing the world in various fields while overcoming the difficulties brought about by a global pandemic. Data shows that during this year's Spring Festival, or Chinese New Year, immigration management agencies across China inspected 1.443 million people who left the country, a 117.8 percent surge year-on-year. Outbound Chinese tourists showed their strong buying power in this first week-long holiday after COVID policy optimization, as the transaction amount of domestic consumers using UnionPay cards at overseas ATMs and merchants grew by some 60 percent, the Beijing Youth Daily reported on January 30. Domestically, after China optimized its COVID policy, authorities then conducted one-on-one visits to foreign enterprises and business associations to collect their responses, said the Chinese Ministry of Commerce on January 6. At a thematic briefing on January 10, officials from sectors including healthcare, commerce, customs, immigration, and civil aviation explained China's new COVID policy to more than 120 foreign enterprises and business associations from over 30 countries, and provided answers to related questions, such as "how does China monitor the virus' mutation" and "when will direct flights between China and the US resume." "Foreign businessmen that we know welcome the new opening policy," Loh Wee Keng, chairman of the Malaysian Chamber of Commerce and Industry in China, told the Global Times at the briefing. "There are a lot of companies that really can't wait to invest in China." At regional governments, officials also work hard to help local exporters reconnect with overseas clients offline as soon as possible. On December 4, 2022, days before China officially announced the optimization of the COVID policy, 48-year-old Xu had arrived in Japan along with dozens of textile exporters. They are from Jiaxing, East China's Zhejiang Province. By taking a charter flight provided by the Jiaxing government, the exporters were able to attend Asia Fashion Fair there to seek new Japanese clients who were out of reach in the three years of the global pandemic. Xu owns a textile company in Jiaxing. Before the global pandemic, more than 90 percent of her orders were from Japan. The pandemic brought great losses for her company because of previous entry and exit restrictions, but fortunately the hard days seem to have come to an end. "This time in Japan, I talked to potential buyers face to face and got many intent orders," Xu told the Global Times after returning to China. "I appreciate the government's efforts in sending us out, such as applying for visas, chartering the flight, and covering some of our costs." Jiaxing was among the many Chinese cities that had tried hard in recent years to provide conveniences for local exporters in reconnecting with overseas clientele offline. In Suzhou, East China's Jiangsu Province, for instance, the commerce authority chartered a flight for local exporters to Japan in early November 2022, becoming one of the first Chinese regional governments to provide such a service since COVID-19 broke out in 2020. Through this trip, Suzhou exporters brought back orders valued at more than 1 billion yuan ($147.4 million) in total, Chinese media sources reported. Optimistic about her business this year after COVID, Xu said she is looking forward to a "fair competition" between her and her foreign peers, and is confident about the cost-effective products she offers. In the culture and art sector, China's adjusted COVID policy also brings a new spring to cultural exchanges and communication, said insiders reached by the Global Times. Over the just concluded Chinese New Year holidays in Shanghai, for instance, there were long queues in front of the Shanghai Museum every day, with citizens waiting with excitement to watch an exhibition of 52 masterpieces by renowned European artists including Van Gogh. Jointly held by the Shanghai Museum and the National Gallery of the UK, the exhibition was hailed as the first high-level Western art exhibition in China since COVID policy optimization. "The pandemic never stopped us from communicating with the world," the museum's director Chu Xiaobo told the Global Times. "We overcame various difficulties and continue to be an envoy of cultural exchanges." Undoubtedly, the world is glad to see China's increase in external communications in various fields after the global pandemic, a trend unlikely to be slowed or hindered by Western media sources' skewed reporting. "Since China has opened its door after the global pandemic, its link with the world will only get tighter this year," Li Haidong, a professor at the Institute of International Relations at the China Foreign Affairs University, told the Global Times.
Toxic media campaign
Although COVID-19 strains currently found in China have also circulated in other countries, some Western media outlets kept demonizing the infection waves in the country after China adjusted its COVID response policy, while trying hard to portray China as a "troublemaker" in the world. Observers found that a common tactic used by such media sources is to quote certain Chinese netizens' posts out of context, especially those that don't reflect the mainstream voices on Chinese social media. Such a tactic feeds an atmosphere of panic, fear, and vilification of the country and any potential tourists as to what they might bring in. Another tactic recently employed was imposing arbitrary temporary entry restrictions against Chinese visitors after the optimization of China's COVID policy, under claims that the world distrusted China and was dissatisfied with its COVID response efforts. Scanning through recent reports by Western media outlets including the VOA, the Wall Street Journal (WSJ), and RFI (Radio France International), readers can clearly note the use of inflammatory buzzwords such as "chaos," "uncertainty," and "suspicious" frequently used in their stories. For the last three years of the pandemic, some Western media sources have denigrated China, and China's COVID policy adjustment is just another new pretext for them to continue with the ceaseless onslaught, although previously they were among those who clamored for the loosening of the country's initial zero-COVID policy, Chinese media and international relations experts told the Global Times. No matter how big the contributions made by China's resumption of people-to-people exchanges will be to global economic recovery, some anti-China media pundits in the West and the forces behind them will continue to display their plain displeasure at China reconnecting with the world, said Li. "They naively think they can obstruct China's ties with the world through their biased articles," he added. Along with such a propaganda campaign that intends to isolate China, a few countries set entry restrictions on Chinese visitors in December 2022 under various pretexts. And a few media outlets just don't bother hiding their nefarious intentions, such as German newspaper Frankfurter Allgemeine Zeitung which said in a January article that, although conducting mandatory COVID testing on inbound Chinese visitors does not make much scientific sense, the political pressure of the measure should not be underestimated. Partly because of media games, the West's hostility to China rose over the years during the pandemic, said observers. "It's [unreasonable for] Western countries to politicize their anti-COVID policies and regulations to contain China; we resolutely oppose such measures," Zhu Feng, executive dean of the School of International Studies under Nanjing University, told the Global Times. Textile exporter Xu, who said she found that "most China-related coverage by Western media sources is negative," also protested such unfounded slanders against China.
Source: Global times
Mexico, the Latin American country wants to expand trade relations with Bangladesh, as they are seeing great potential in the Automobile, Pharmaceutical, Chemical, and FinTech sectors. Federico Salas Lotfe, Ambassador of the Embassy of Mexico in New Delhi, India made a courtesy meeting with Mostofa Azad Chowdhury Babu, Senior Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on 30 January. During the meeting, the Mexican Ambassador said, “Economic relations between Bangladesh and Mexico are still small. By exploring and diversifying trade both sides would be benefited. The Automobile, Pharmaceutical, Chemical, and FinTech sectors have huge potential.” And Federico Salas Lotfe said, “Mexico is one of the major suppliers of the global automobile market. We are interested in exchanging Mexico’s experience and transfer technology to build the capacity of Bangladesh in automobile manufacturing. I think it would be a good initiative. Bangladeshi entrepreneurs also establish businesses in Mexico.” The Senior Vice President of FBCCI, Mostofa Azad Chowdhury Babu, briefed the team from Mexico on the Bangladesh Business Summit that would be held in March of this year to commemorate FBCCI’s 50th founding anniversary. He said that the FBCCI anticipates active involvement from the Mexican side. He said, “Several plenary sessions will be held during the three-day Business Summit. While trade and investment potentialities in Bangladesh will be discussed. CEOs from international companies, business leaders, analysts, and top officials of different countries and organizations are going to present the mega event.” Besides he requested to active participation of Mexican officials and the business community in the event. Mostofa Azad Chowdhury also said that FBCCI will provide all kinds of support to Mexican businessmen in expanding trade and investment in Bangladesh. FBCCI Director Syed Sadat Almas Kabir, S. M. Shafiuzzaman, Abu Hossain Bhuiyan Ranu, Secretary General Mohammad Mahfuzul Hoque, and other members of the delegation were also present at the meeting. At the FBCCI office in the afternoon, a special delegation of senior executives from the Mitsubishi UFG Financial Group, or MUFG Bank, a well-known Japanese bank and one of the biggest banks in the world, paid a courtesy visit. Gaurav Bhagat, the bank’s managing director and head of FI (South Asia), served as the delegation’s leader. In the upcoming days, the bank’s officials have indicated a desire to operate more in Bangladesh. Besides highlighting the potential sectors of Bangladesh, the FBCCI leaders highlighted the importance of foreign investment for the country, and urged the MUFG bank authority to open a branch in Dhaka. FBCCI Senior Vice President Mostofa Azad Chowdhury Babu; Vice President Md. Amin Helaly, FBCCI Director Syed Moazzem Hossain; Shomi Kaiser, Dr. Nadia Binte Amin, Syed Sadat Almas Kabir; Abul Kasem Khan, Abu Hossain Bhuiya Ranu, BARVIDA Secretary General Mohammed Shahidul Islam were also present at the meeting.
Source: Textile today
With the rising global trends in fast fashion, the export of textile waste or unwanted clothes to destinations outside the EU has steadily increased. This export reached 1.4 million tonnes in 2021. Around 2.1 million tonnes of post-consumer clothing and home textiles are collected in the EU annually for recycling or sale on global reuse markets. This represents around 38% of textiles placed on the EU market. The remaining get discarded in the mixed waste streams. Pakistan is one of the dumping grounds for post-consumer textile waste or unwanted clothes discarded every year from the EU. In 2021, used clothing worth 46 million USD export value was exported from the EU to Pakistan. Used clothes from the EU’s high streets end up reaching resale markets and also, dumping sites in the country. In the absence of efficient traceability criteria and waste hierarchy in both the EU and Pakistan, that distinguishes between textile waste and second-hand textile products, the textile waste streams falsely labeled as second-hand clothes are imported to Pakistan, a major portion of which adds to the already mounting ecosystem challenges in the country. The unregulated waste streams of used clothing and lack of their recycling not only cause more GHG emissions and unsustainable water consumption, as this leads to the manufacturing of more new clothing but also causes an increase in the dumping of textile waste in landfills. EU is now giving utmost consideration to sustainability, promoting textile circularity, and regulating the export of textile waste streams to other nations. EU’s legislative reforms will change the game for Pakistan’s textile and secondhand clothing industry, which will not only significantly minimize the dumping of textile waste but also support the alignment of the current textile business models with the textile circularity business models.
Current scenario
Affordability and business through resale platforms are the massive forces behind large imports of used clothing from the EU to Pakistan. With the growing economic crisis, consumers have become mindful of their expenses and their preference for secondhand clothing, which is believed to have superior quality, has grown. Pakistan has a huge textile resale market, that resales imported used clothes, some of which are recycled while most are sold directly. This expansion of the secondhand clothing market in the country is not only a pushback against the mounting fast-fashion systems but also poses fewer environmental consequences compared to the fashion industry and manufacturing of new textiles. For instance, recycling and reshaping secondhand clothes emit fewer GHGs and cause less water pollution compared to the emissions and pollution from new clothing production. However, the inflow of unregulated textile waste streams, falsely labeled as secondhand clothing, and unmonitored dumping of textile waste is a rising environmental concern and a challenge to promote textile circularity in Pakistan.
Pakistan has a huge potential to recycle and redesign used textiles
The current scenario indicates that imported used clothes are recycled by some industries, but the progress is not significant and major portions of these clothes enter resale markets and dumping sites directly. For instance, Karachi Export Processing Zone (KEPZ) is greatly benefiting from the used textile industry. It recycles and resales imported used clothes globally. Given the preference for the use of recycled material in new clothes, if industries are channeled into the market of recycled fashion, the recycling and redesigning of imported and locally generated used clothes can become a significant business market for Pakistan. Recycled Polyester Staple Fiber (rPSF) is a highly suitable alternative for the industry to promote business through recycled fashion. The installment of recycling plants for the production of rPSF can uplift and green the industry’s business development, as it is the most preferred recycled content. rPSF has a huge business potential for brands and is now gaining high popularity, as it supports sustainability and compliance with the Global Recycling Standards (GRS) due to various desired physical properties including higher strength, low moisture absorbency, high elasticity, and comparatively easy production.
Textile circularity is now a matter of utmost attention for Pakistan’s textile industry. The industry is currently experiencing a massive transition from only manufacturing new textiles in the absence of strategies to ensure their circularity, to initiating circular business models, with a major focus on eco-designed textile products and recycling of used textiles. From knowledge dissemination to preparing skilled labor, implementing sustainable business models, and upscaling technology, textile companies are actively internalizing the EU’s guidelines and strategies to achieve zero waste targets. The progress, however, needs to be enhanced in the entire industry through coordination, the right financial allocations, and training.
The next big thing
EU Strategy for Sustainable and Circular Textiles will enormously transform the textile production patterns in Pakistan. Driving fast fashion out of fashion by reversing overconsumption and overproduction is a major target of the strategy. The industry will be obligated to adopt resource-efficient manufacturing processes and circular business models. This will not only promote the manufacturing of superior quality clothing, but also the recycling of secondhand clothes, thus causing a massive shift in the consumers’ preference towards recycled secondhand textile products. With the motto of ReFashionNow, the EU is underlining the introduction of eco-design requirements for textiles including quality, durability, longer use, repair, and reuse of textile products, that will ultimately decouple textile waste generation from growth. The textile industry will experience mandatory requirements to give a second life to used textiles, which will require major shifts in industrial functioning. This will require skilled labor, efficient policies for waste hierarchy and collection, and technical progress for recycling, and treatment of used clothes. As the EU’s strategy for textile circularity is getting stricter, the information requirements to track the origin of all the textile products via traceability mechanisms are also becoming a norm in the EU’s green economy plan. Through its Digital Product Passport initiative, the EU is introducing mandatory information requirements on circularity and key environmental aspects of textiles. This indicates that traceability mechanisms will gradually become applicable to secondhand textile products, both in the EU and Pakistan. From the export of secondhand textiles to their recycling and reuse points, this mechanism will trace all the necessary information of the product’s lifecycle, thus reducing dumping of the used textiles to the minimum. Digital Product Passport is a milestone initiative to deal with greenwashing, which misleads buyers by giving a false impression of the environmental footprint of the companies. The EU’s criteria to avoid greenwashing are getting immensely stringent, as the European Commission is seeking to define all greenwashing tactics (figure 1) and disseminate information about them. While this will give enormous recognition to the textile companies in Pakistan who are making efforts to green their products; it will also hold accountable, the poorly performing companies, for their high environmental footprint. Aligning business growth with the EU’s strategy for textile circularity by focusing maximum on eco-designed new products and recycling used textiles is the next step towards a new normal for Pakistan’s textile industry, as the strategy will soon enter into force. This will not only regulate the EU’s post-consumer textile waste misleadingly labeled as secondhand textiles entering Pakistan but will also reduce the dumping of textile waste to the minimum levels. It is a must for Pakistan’s textile industry to adopt waste hierarchy protocols for the imported and internally generated post-consumer textile waste and strengthen the traceability mechanism to trace its recycling and end-of-life points. As the EU is a top textile export destination for Pakistan and is increasingly focusing on eco-design requirements for textiles, management of post-consumer textile waste will fulfill the EU’s mounting requirements for textile circularity. The industry will observe a transition, as manufacturing of superior quality textile products and recycling and exporting of used clothes will dominate the industrial functioning. This will reduce the environmental footprint of the industry to a significant level and promote green economy-based industrial development. This will require the right financial allocations, upscaling of the current technology, skilled labor, and coordination among the relevant stakeholders for knowledge dissemination, the absence of which will affect the industry’s compliance performance compared to its regional competitors, ultimately distressing the export-based business market to the EU.
Source: global villages pace
Over the years, women in Pakistan’s once thriving textile industry have played a crucial role supplying Europe and the US with items from denim to towels. But since the pandemic, 7 million workers have been laid off due to low exports and the country’s grave economic crisis. In my city, Faisalabad, hundreds of thousands of the 1.3 million textile workers – half of whom are women – have lost their jobs and the jobs of a huge number are on the brink. For Faisalabad’s female textile workers the biggest worry is that these jobs will be lost for ever. That is worse than their delayed and underpaid salaries, the harassment they face at work and having no healthcare facilities. For those rural women who travel to the factories from surrounding areas early in the morning and work long days for low pay, this is their only source of income. My city is known as the Manchester of Pakistan, and produces textiles for the world. But the pressure on the industry is immense: electricity costs have doubled; floods have devastated cotton fields, adding to shortages; the government has placed limitations on credit. Hundreds of factories have closed or are working short shifts. Workers have been fired. Even the cottage industry of female workers, sewing at home, lacks support or incentives. They make gloves, socks and stockings for less than a dollar a day. I believe this artisanal work has huge potential and the government should declare it an industry, ensuring respectable wages. The Women Workers’ Alliance (WWA) is protesting against the mass layoffs in the industry, and demanding workers are paid. I’ve conducted education sessions with hundreds of women over labour laws and collective rights but still there is a lack of awareness. We estimate that of more than 150,000 workers in the hosiery sector alone, only 4,200 have social security cards. Women are reluctant to raise their voices because they fear it will mean losing their jobs. WWA has helped workers form anti-harassment committees in textile sectors and other industries. We have also held meetings with the government’s labour department regarding the formation of anti-harassment committees and succeeded in getting them into 40 mills in Faisalabad. One of the key issues is that we cannot meet with women at their workplaces for any union activity, and they are bussed in to these workplaces by the the owners. Three months ago, workers from Masood Textile Mills succeeded in forcing the implementation of the legal minimum wage, a battle that took us four months. In small mills labour laws are ignored and workers denied even maternity leave. Women rarely get much sympathy but despite this I’m hopeful – that jobs will return, that women in the factories will become more aware of their rights and win out against the prejudice to get financial freedom through respectable wages.
Source: The guardian
Here's an environmentally stylish twist on the fast fashion approach to dressing: Take those old clothes and instead of tossing them in the garbage, try making them new again. That's what two groups — the Fashion History Museum in Cambridge, Ont., and The Guelph Tool Library — have in mind as they encourage people to reuse clothing that otherwise would end up in landfills. And that approach, it appears, may go a long way in helping reduce the amount of garment materials that end up in landfills, which according to a new study is in the hundreds of millions of kilograms a year. For its part, the Fashion History Museum is challenging people to repurpose clothing to create daring new outfits. Anyone who sews can join the museum's upcycling challenge, and the finished garments and accessories will be featured at an event this spring. "Upcycling is something I think we're going to see more of in fashion," Jonathan Walford, director and curator of the Fashion History Museum, told CBC Kitchener-Waterloo's The Morning Edition.
"I think that's the wave of the future."
Turning 'unloved fabrics' into much-loved pieces
Upcycling involves taking old clothes and transforming them into something new. It's one way to reuse textiles that may have otherwise ended up in the trash. Reusing fabric from old clothing is not new, Walford said. In the 18th century, the most expensive part of any outfit was the fabric. Women would keep the dresses in a trunk for their daughters and granddaughters to take them apart, and repurpose the material, he explained. "There are opportunities of taking old and unloved fabrics and materials, and using them up for today and making them relevant for today's audience," Walford said. The clothing industry has had its share of criticism when it comes to its environmental impact. Of particular concern is fast fashion — clothing that's made inexpensively and rapidly in response to the latest trends. These mass-marketed garments aren't designed to last long, thus ending up in landfills quicker than garments of higher quality and cost. According to a study by researchers at the University of Waterloo and Seneca College in Toronto, Canadians throw out 500 million kilograms of fabric that could be reused and recycled. The study analyzes how much fabric is ending up in Canada's landfills and outlines a new grading system to help divert textile waste from the trash. Study co-author Olaf Weber, a University of Waterloo professor in the school of environment, enterprise and development, said 85 per cent of clothing that's thrown out "shouldn't be there." "Only 15 per cent that we found is really waste — cannot be recycled, can't be reused, can't be resold," Weber said.Researchers evaluated a sample of about 10,000 items collected from municipalities across Ontario between 2019 and 2020. Weber said it was surprising to see how much textile waste was like new. Canada doesn't have a standardized system for sorting textiles, but the researchers developed a new method to evaluate an item's quality, on a scale of A to F, to determine whether it can be resold, recycled or thrown out. For example, a pair of ripped and stained jeans might be flagged for repair instead of heading into the trash. Weber said the study's goal was to determine the quality and quantity of textile waste, and the next step is to encourage consumers to divert textile from landfills.
Source: www.cbc.ca
