Encroachment on land proposed for textile cluster at Sukhpuri in Burhanpur has delayed development work, claimed industrialists urging local administration and micro, small and medium enterprises (MSME) department to intervene. The MSME department has proposed to develop a textile cluster at an estimated cost of Rs 56 crore on 63 hectare at Sukhpuri village in Burhanpur. The cluster will be developed under MP government’s new policy described under MSME Rule 2021. Burhanpur Sukhpuri Textile Cluster Association director Prashant Shorff said, “Development work at proposed textile cluster can start once issues are addressed. We have raised concern regarding encroachment on proposed land to the local administration and MSME department. The district collector has assured full cooperation to clear the encroachment from the proposed site. The land also has very deep pits that needs to be levelled.” A 12- member Special Purpose Vehicle has been incorporated for the textile cluster. The cluster is expected to attract an investment of over Rs 800 crore and generate employment for more than 7000 people. In the cluster, 225 textile and related industries are expected to come up, according to District Trade and Industries Centre. An official from the MSME department wishing anonymity said, “We are in touch with industries and the work on four proposed clusters are at different stages. All these clusters will be developed in phases and we are working on issues to expedite the work. The state government will contribute up to 60 per cent of the development cost or Rs 20 crore for developing the cluster. Industries said, we had to select land from available options, but government should intervene so that the development work can start. Shroff said, “Burhanpur is a hub for power looms and thousands of cottage, micro and small industries. The cluster will help in giving a level playing field to small units by cutting down on operational cost and use of advanced technology support.”
Source: Times of India
The Indian Institute of Technology, Ropar, has developed an innovative green technology — air nano bubble — that can reduce the use of water up to 90 per cent in textile industry. Nearly 200 litres of water is required to process 1 kg of cotton fabric. The laboratory reports suggest the air nano bubble dispersed in water could reduce the water consumption and chemical dosage by 90-95 per cent. This ultimately also saves 90 per cent of the energy consumption, said Dr Neelkanth Nirmalkar, who has developed the technology. IIT Ropar director Rajeev Ahuja said, “eco-friendly technology has been developed at the IIT, Ropar, under a startup which is also working towards cleaning the environment and is expanding in developing new applications ranging from water treatment to healthcare.” In the textile industry, the water is used at many steps, including for dyeing, finishing chemicals in the textile substrates, desizing (process of removal of sizing material from yarn), scouring, bleaching, and mercerizing (chemical treatment of fabric to enhance affinity towards dye). At the same time, the textile industry also produces the highest volume of waste water. Dr Nirmalkar said the technology was based on nano bubbles of air and ozone.
Source: Tribune India
The Uttar Pradesh government on Tuesday said foreign visitors have evinced keen interest to invest in five out of 25 sectors in the state ahead of Uttar Pradesh Global Investors’ Summit-2023. According to a press release, the five sectors include data centre, logistics park, renewable energy, apparel and textile besides the Film City. Chief minister Yogi Adityanath had sent eight teams abroad to hold international roadshows in 21 cities of 16 countries to attract investment in run-up to the UPGIS-2023 scheduled in Lucknow from February 10 to 12. In all, 108 memorandums of understanding (MoUs) worth ₹7.12 lakh crore were signed there. The investment proposals, when implemented, are expected to generate employment for 7 lakh youth in the state. An investment of more than ₹17,000 crore has been proposed for setting up a data hub thereby making the sector first choice of investors. The second priority has been the logistics park. According to the press release, the policies of the Yogi government have led to setting up of the first data centre in Greater Noida. At roadshows held in Singapore and Australia, Global State Capital Pvt Ltd showed interest in investing ₹8,260 crore to build a data centre in the state and Star Consortium Private Limited worked out a proposal for investment of ₹1,000 crore. At the roadshows in the UK and the USA, Sify International proposed investment of ₹8,300 crore. In the logistics park sector, investment proposals for ₹16,810 crore have been signed. These included investment proposals for over ₹8,200 crore received at Canada and the USA and proposals for ₹1,000 crore received in the logistics services at the roadshows in Singapore and Australia. At the roadshow in the UAE, Aastha Green Energy Ventures Private Limited proposed an investment of ₹4,480 crore while Shree Siddharth Infratech and Services has made an action plan to spend ₹8,000 crore. Boson Energy SA has proposed to invest ₹1,000 crore at the road shows in Germany, Belgium and Sweden. The Geothermal Core Inc proposed to set up a renewable energy plant with ₹820 crore. Fourth priority sector includes apparel and textile. At Japan and South Korea, Japan India Industry Promotion Association signed MoU worth ₹2,500 crore and Nisenken Quality Evaluation Centre signed an MoU of ₹10,000 crore. An investment of ₹12,500 crore has been thus proposed in this area. The film industry stands on the fifth sport as during roadshows in Germany, Belgium and Sweden, International Group AB decided to invest ₹10,000 crore in the Film City in the state.
Source: Hindustan Times
As manufacturing takes off in India in the midst of global uncertainty, a large talent pool, digitisation and labour arbitrage will be the key differentiators for the sector Arun T. Ramchandani looks out of the window of his sparsely furnished room at L&T’s office in Powai, Mumbai and remembers the early days. He joined the organisation straight from IIT Delhi in 1984 after graduating with a degree in mechanical engineering. “Even then, there was a joy in manufacturing,” he says. Four decades is a long time and in the context of how technology has evolved to engulf our lives within this time, it suddenly seems even longer. As Executive VP at L&T Defence, Ramchandani is in the midst of a decisive phase of the Indian manufacturing story. The pressure on China is palpable and India—from being a modest challenger a decade ago to becoming a versatile player well on its way to consolidating its position globally—has come a long way. Of course, the long and arduous journey ahead is not going to be easy, and a lot of things need to fall in place, from flawless execution to the correct strategy, to achieve the desired results. “We never had enablers like 3D CAD (computer-aided design), or advanced CMM (coordinate measuring machine) systems. There used to be a heavy engineering and switchgear factory here, and we had to go to Tata Institute of Fundamental Research to run our programs,” narrates Ramchandani. If that is harking back to a bygone era, he is hugely chuffed about what he sees today. Just in the defence sphere, L&T today has a large spread of product offerings, among which are land-, air- and naval-based weapon systems and communications to name just a few. Arguably, Indian manufacturing has never had it so good. There is a sense of optimism in the industry that is flush with a talented workforce and backed by the willingness of large global and domestic firms to cut the big cheques. The building blocks of creating a compelling manufacturing tale by 2047 looks good, and it is up to the stakeholders to make the most of the opportunity. At 14 per cent of India’s GDP, manufacturing, says K.C. Jhanwar, MD of UltraTech Cement, is expected to grow by 9 per cent over the next five years. “This is distinctly much more than many other countries in Asia. We have a huge labour supply with more than half the population under 30; and in terms of cost per hour, India is at about a quarter of China (92 cents here, compared to $3.5 there). More importantly, we have a skilled labour base coupled with the second-largest English-speaking population after the US,” he points out. For international majors looking to make India a global hub, it is a seriously attractive proposition. “Of course, there is also the domestic market with a huge untapped opportunity.” What enthuses Ramchandani is how the younger lot is looking at manufacturing now. “Some momentum was lost during the IT boom and a lot of qualified manufacturing talent preferred to go to the Middle-east,” he says. But with each phase of growth, the way in which manufacturing is perceived changes. “Now, with Industry 4.0 (the operation of machinery with tech connected through the internet), 5G and other advancements, the next few years will be hugely exciting.” It is a sentiment shared by all stakeholders remotely linked to manufacturing. A focus on digitisation or tech is not a five- or a seven-year plan. “It needs to take place today. There are clear signals that Industrial Revolution 4.0 or 5.0 will go hand in hand with the digital and tech revolution. We will need to master the disruptions and learn to go into the future with agility and resilience,” says Vyankatesh Kulkarni, Executive Director and Head of Operations at Mercedes-Benz India. For a company that has manufacturing locations around the globe, he is well-positioned to speak on the China-plus one theme that has gained prominence recently. “There are other economies as well that offer opportunities, but India has the potential to emerge as a responsible industrial country and position itself as a competitive alternative. It is important to understand that China-plus one does not mean China-plus India,” says Kulkarni, adding, if many countries around the world have shown cyclic or segment-specific growth, India’s pace has largely remained steady and stable. He attributes the trend to investments in education and skilling, among other areas. As much as manufacturing has the makings of a robust story, the policy initiatives introduced in recent times—such as the production-linked incentive scheme (PLI)—are just as critical. UltraTech’s Jhanwar refers to the National Logistics Policy 2022 that has a focus on reducing costs by 4 per cent of the GDP. “That will help catalyse both efficiency and scale. Already, with India’s net-zero commitment by 2070, we are seeing a shift with 40 per cent of installed capacity coming from renewable energy. Today, India is one of the global leaders in solar generation capacity,” he says. It is the scale of ambition that will determine manufacturing in 2047. Globally, the situation is conducive for the country. Europe is in a state of flux while China is dealing with its own issues. India, meanwhile, will need to shift into top gear. Ramchandani, while pointing out the huge strategic advantage available due to our large population and demographics, says a significant improvement in the skilling process is absolutely necessary. Being in the thick of things will be a key factor. The comparison to China or other Asian markets is inevitable. That said, the approach to India will need to be entirely different due to the range of challenges—from the level to which manufacturing has evolved in India, the complex regulatory structures surrounding land acquisition and the many more peculiar issues that crop up while setting up an enterprise in India. It boils down to how persevering one can be to get the most out of what India has to offer. Sanjeev Sharma, Country Head and MD of engineering major ABB India, who has worked across continents, speaks of some similarities between China and India’s development journey. “I was involved with China from 1994, and those who got into the country early, succeeded. There is that similarity with India and much of the same constraints; but the potential far outweighs everything else,” he says. His company has been in existence for 130 years, and in India for over a century. “We have been manufacturing for 78 years and there is absolutely no doubt that success in India comes only from having a long-term commitment.” To him, manufacturing, regardless of the stage of development, will always provide a multiplier effect. “In India’s case, we have a low per capita income. Therefore, when you expand, there is a significant re-distribution of wealth that takes place,” says Sharma. A growing GDP with a higher proportion from manufacturing makes for the most potent combination. “If we look at the past 8-10 years and manufacturing’s contribution to GDP, the aspiration was always to be 25 per cent or more. However, that number has always remained between 15-17 per cent,” says Soumyadeep Ganguly, Partner at McKinsey & Company. To him, the target of 25 per cent in a $5-trillion economy is achievable. For that to take place, some factors—such as strong domestic demand, the need for employment generation, growth in FDI and the export opportunities that will be available with the supply chain transformation currently underway globally, along with India’s ability to attract capital from diverse sources that complement the government’s own capex, and finally, the push for sustainability and new tech emerging thereon—are critical. Ganguly believes there are sectors such as electronics, capital goods, chemicals and speciality chemicals, textiles and apparel, and auto and auto components that will lead India’s growth in manufacturing. “All these are well poised today. Besides, we have investments coming in here and a lot of supply chain solutions already making the shift to India,” he explains. That said, one also needs to look at the sunrise sectors among which are aerospace and defence, low carbon tech and semiconductors. He says that these upcoming sectors would be large drivers of the Indian manufacturing story. On the supply chain aspect, Jhanwar says the reconfiguration is for greater reliability and resilience. For their part, firms think that the government’s initiatives such as Make in India and the push for electrification augur well for the country. “We launched our first luxury electric vehicle (EV) in India, which is running successfully,” claims Kulkarni. Over time, the confidence levels of those putting in the money have taken off too. “It is not just OEMs or product makers who are evolving, but India has become a hub for many global Tier I suppliers as well. A mature ecosystem with skilled manpower, cost advantage and digital prowess makes us believe that we can enhance our manufacturing footprint in India,” he says. Speaking of sustainability, his company has set a target of making its new fleet of passenger cars CO2-neutral over the entire life cycle of the vehicle by 2039. An important aspect of manufacturing is to find ways to grow exports. In defence, for instance, domestic production is around Rs 80,000 crore, with the government wanting to increase that to Rs 1.75 lakh crore by 2025. Compare that to exports in 2014, which amounted to Rs 500 crore, and is now at Rs 15,000 crore. “By itself, that is not a large number and we are a small player with a presence across segments. A defence industrial complex is being created,” says Ramchandani. That said, he expects India to be a larger player in 2047 , and defence to account for “a healthy share of manufacturing”. In the midst of all this, the government has a role to play too. ABB’s Sharma attempts to highlight a difference between manufacturing and everything else. “If you look at services, the progress has been tremendous, but it was driven by IT infrastructure. That is now at a high stage of maturity and India is well placed,” he explains. However, manufacturing calls for physical infrastructure and that is not something that can be glossed over. Citing cases of nations such as Mexico, Vietnam, Malaysia and, of course China, he elaborates on how the infrastructure was created much before industry came in. “That [infrastructure] could be the existence of vast tracts of land or high-quality ports. It gives industry high levels of comfort when all these are in place,” says Sharma. India will need to adapt to this template, and if that does take place, the resultant progress would be multifold. “Creating an ecosystem means suppliers are locked in, making the whole process of doing business extremely conducive.” Since 2047 is still a quarter of a century away, there will be many things that will come to fruition along the way. India in the next two decades, Jhanwar predicts, will be a hi-tech and R&D-intensive manufacturing economy. “An extensive adoption of digitalisation, robotics and analytics would provide a multiplier effect or the key ‘productivity to prosperity’ driver,” he says. To him, the multitude of factories and machinery generating copious amounts of data is the foundation to harnessing deeper insights. “In fact, the cascading effects of policy, tech and research-based growth will lead to many SMEs making the transition to manufacturing unicorns. Technology for the future will primarily originate from the start-up ecosystem.” Think manufacturing and go global is the credo. “We are manufacturing for the world. India is looking to exploit its digital strengths, take that to manufacturing and provide a robust alternative to China,” explains Ramchandani. He says there is little doubt that by 2047, India will have made the transition from relatively small-scale manufacturing to becoming a global manufacturing hub. Digital alone has the ability to ramp up the manufacturing sector. Enabling free-flowing access to information on the digital backbone helps in paving the way for higher productivity and transfer of knowledge. If Industry 4.0 is here, maybe, we could be seeing an Industry 7.0 in 2047. That’s how much of a profound impact digital can have, Ramchandani explains. Looking into the future, ‘manufacturing next’ is a phrase Jhanwar picks to define an industry resilient to frequent disruptions. “It could be supply chain shocks, technology shifts, volatile energy prices, product obsolescence or innovative business models. India has access to all the key ingredients and a great foundation to become a leading player in manufacturing next,” he says, with a generous dose of hope and confidence. Our place under the manufacturing sun is just around the corner.
Source: Business Today
Russian ambassador to India Denis Alipov recently said an alternative rupee-rouble mechanism for bilateral trade has been set up to avoid Western sanctions on Russia that were imposed for its invasion of Ukraine. Indian banks are adopting a cautious approach to use the payment system, possibly because of some apprehensions, Alipov observed. The envoy was addressing a conference on 'Next Steps in India-Russia Strategic Partnership; Old Friends New Horizons' organised by the India Writes Network and the Centre for Global India Insights. The rupee-rouble payment system for trade was rolled out to settle dues in rupees instead of US dollars or euros. Vostro accounts are used to make payments in domestic currency. “The banks would like to be on the safe side. It will take some more time for the knowledge that it is not at all detrimental for the Indian banking system,” Alipov was quoted as saying by a news agency. The US dollar and euro can be used with non-sanctioned Russian banks for bilateral trade, he said.
Source: Fibre2fashion
“Our business fundamentals remain strong and we are well positioned to continue on our growth trajectory while being able to also deleverage APSEZ balance sheet,” Adani added. During the last quarter, APSEZ reassessed its risk management approach towards foreign currency exposure. The company has applied active hedging and designation of the bonds against natural hedge from future revenues. “The company has a natural hedge i.e sufficient future dollar linked revenue to meet the maturity date cash flows on debt in a financial year,” APSEZ added.APSEZ handled 252.9 MMT of cargo, which is an 8% growth over last year. The growth in cargo volume was led by coal (+23% increase), liquid (excluding crude) (+8% increase) and containers (+5% increase).During the nine months ended December, APSEZ handled 24% of total cargo on India ports. Mundra continued to be the largest container handling port with 4.88 million TEUs versus 4.45 million TEUs managed by JNPT during 9M FY23.
Source: Financial Express
Adani Ports and Special Economic Zone is planning loan repayments and pre-payments totalling Rs 5,000 crore in 2023-24, Karan Adani, wholetime director and CEO of the company, said in a statement on Tuesday.“For FY24, APSEZ is targeting Ebitda of Rs 14,500-15,000 crore and expects the net debt to Ebitda ratio declining to 2.5X by March 2024. This is after factoring a capex of Rs 4,000-4,500 crore and loan repayments of Rs 5,000 crore, which also include some prepayments,” Adani said. The announcement comes a day after the Adani Group said that its promoters will prepay $1.114 billion for the release of share-backed loans ahead of maturity in September 2024, including for 12% in APSEZ. The group said that action is being taken in light of the recent market volatility. APSEZ’s net debt to Ebitda was at around 3.2x as of December 2022. Ebitda guidance for the current financial year is Rs 12,200-12,600 crore, while capital expenditure for FY23 is expected to close at `8,600 crore. The company’s estimated net debt at the end of FY23 is expected to be at Rs 44,000 crore while for the end of FY24, as per the management’s guidance, it is expected to be at Rs 38,600 crore. Adani Enterprises share price rises 25%, Adani Transmission hits upper circuit as Hindenburg effect dims. Cash surplus generated through operations during FY24 would be used to re-pay/pre-pay loans, APSEZ said in a presentation. Its cash and cash equivalent stood at Rs 6,257 crore as of December 2022. Though APSEZ reported a fall in net profit for the December quarter year-on-year, the announcement of repayment of loans saw the company’s share prices go up by 1.33% to close at Rs 553.30.
Source: Financial Express
According to officials, 250 exhibitors from 10 states of India are showcasing their products for autumn/winter 2023-24 and 1,128 international buyers from 101 countries have registered to participate. In a move to broaden the participation of exporters of garments, other than women apparels, the 68th India International Garment Fair (IIGF) that began on Tuesday in Greater Noida, will focus on menswear, kidswear and knitwear for the first time this year. The three-day biennial fair is being organized by International Garment Fair Association at the India Expo Mart in Greater Noida. According to officials, around 250 exhibitors from 10 states of India are showcasing their products for autumn/winter 2023-24 and 1,128 international buyers from 101 countries have registered to participate in the fair. “A special pavilion has been provided to exporters of menswear, kidswear and knitwear in order to increase their participation at this year’s fair. The pavilion is at a prominent location as the fair’s objective is to promote all categories of garment exporters,” said Lalit Thukral, chairman, International Garment Fair Association (IGFA), and president, Noida Apparel Export Cluster (NAEC). Inaugurating the event, Darshana Jardosh, minister of state for textiles, said, “India’s annual textile and apparel export stood at USD 44.4 billion in FY 2022-23 with an increase of 41%, compared to last year and India is second largest textile and clothing exporter in the world. Hence, in view of the huge potential for employment generation and foreign exchange earning, apparel and textile industry is a priority for the ministry.” Thukral further said each edition of IIGF attracts export business of around USD 200 million to India. “This time, we expect around USD 350 million in export business,” he said. Gautam Budh Nagar is termed as the “apparel city” as it generates a revenue of about ₹40,000 crore. The district houses around 3,000 garment export firms. “The district’s apparel revenue is touch ₹60,000 crore in the coming years,” said Thukral. The IIGF is held twice a year and covers the two fashion seasons of autumn/winter and spring/summer of the European Union, the USA and other western markets. The fairs is held in the months of January/February and June/July every year.
Source: Hindustan Times
Cambodia’s trade with the nine members of the Association of Southeast Asian Nations (ASEAN) was worth $16.053 billion last year—up by 1.4 per cent from $15.838 million in 2021. Its exports to the nine ASEAN members rose by 13 per cent from $2.914 billion in 2021 to $3.297 billion last year, making up 14.7 per cent of the $22.483 billion in total exports. The trade figure with ASEAN nations was 30.62 per cent of the country’s $52.425 billion in foreign trade for the year—down from a 32.99 per cent share in 2021, a ministry of commerce report said. On the other hand, the country’s imports from ASEAN markets slid by 1.3 per cent from $12.924 billion in 2021 to $12.756 billion last year, and comprised 42.60 per cent of the $29.942 billion in total imports. Vietnam and Thailand alone represented 67.28 per cent of Cambodia’s trade with the nine other ASEAN countries in 2022, at $6.136 billion and $4.664 billion respectively, rising by 19.64 per cent and 14.22 per cent on a yearly basis, according to Cambodian media reports.
Source: Fibre2fashion
LAHORE:A delegation led by Chairman All Pakistan Textile Mills Association Hamid Zaman called on caretaker Minister for Industry and Commerce SM Tanveer in his office. He was briefed on problems of electricity connections for textile sector, tax refund and social security. APTMA chairman said that the policy of closure of markets should be made in consultation with the stakeholders regarding the saving of energy. The minister assured him of solving problems of the textile sector. The caretaker minister and SM Tanveer said that the textile sector has a key position in the national economy. The textile sector is also a major source of employment. He said this sector is important in the economy and the problems facing the sector will be solved on priority. SM Tanveer said that the government will not let stop the wheel of the industry in any case.
Source: International Textile news
One of the largest global fashion retailers C&A has warned Bangladesh's C&A Textiles of taking legal action for using the same name, which, as the complainant says, is creating confusion among its clients. In an announcement published in newspapers through India-based intellectual property law firm Selvam and Selvam, the multinational company said it has been sourcing from Bangladesh for a long time. Hence, the name has become well known in the country. "In such a situation, the global brand has noticed that an unknown third party called C&A Textiles is doing business under the same name. But C&A has nothing to do with it," read the notice. "So the textile company has been warned against using this name. If the textile company does not change its name, then legal action will be taken against it through court." The notice cautioned the public and said that the global fashion retailer brand will not be held responsible for any unwary consumers or the general public harmed by the company infringing the C&A trademark. Instead, the public is urged to notify the law firm of any information that an authorised person is doing business under this name. Selvam and Selvam published the notice through the Bangladeshi firm IP Conservator Bangladesh. According to the notice, the global brand under the C&A trademark is trading clothes, apparel, and accessories with a reputation across the world. This name is registered in several countries around the world. Registration is pending in several other countries. Enamul Hoque, team leader of IP Conservator, told The Business Standard, "We work with trademark and intellectual rights. The Indian law firm has assigned us the C&A trademark issue. The C&A trademark is registered in Bangladesh in the name of the foreign company. So no one else can use this name." C&A Textile, which is engaged in manufacturing textiles and garments, was registered in 2001. It has a factory in Chattogram. The company ceased production in 2017 due to its owners' irregularities and loan defaults. Then in 2021, Alif Group, another garment trader in the country, bought the company. Currently, Alif Group has managed to bring the company back to partial production. Alif Group's Managing Director Azimul Islam told TBS, "I don't know why legal notice or notification about the name came so long after the company got registered. We have not received any notice in this regard. Rather we are working to re-launch the closed company." The Netherlands-based C&A has been in business since 1841. The company has been sourcing from Bangladesh for over three decades. About 156 garment companies in the country manufacture garments for C&A. C&A Textiles got listed on the stock market in 2014. At that time, it raised Tk45 crore by issuing shares in the capital market. After the listing, the owners of the company exit by selling shares secretly. Several cases have been filed against its then managing director Rukshana Morshed by banks and non-bank financial institutions concerned about defaults on loans. Besides, the Bangladesh Securities and Exchange Commission (BSEC) fined the company's board and senior officials. The company's Tk10 face value share fell to Tk1 on the Dhaka Stock Exchange after production was halted due to owners' irregularities and corruption. After that, the share price rose to Tk11.20 on the news of Alif Group taking ownership of the company. Its shares are currently trading at Tk10.20.
Source: TBS News
Vietnam’s industry insiders and policymakers feel the country must start monitoring and issuing carbon certificates to exporters and retailers in response to the European Union’s (EU) recently-passed carbon levy. Instead of buying the EU's carbon certificate, domestic businesses could take steps to reduce their own carbon footprints during production, experts feel. The European Parliament’s (EP) EU Carbon Border Adjustment Mechanism (CBAM) will "put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries."
The bloc requires exporters to report their commodities' carbon footprints, on which a tax may be levied should carbon emissions during the production of said commodities exceed the EU's carbon regulations. CBAM will hit major Vietnamese exporters and retailers first, especially those dealing with products with higher carbon footprints, giving smaller players some time to prepare, industry experts said. Some Vietnamese businesses, who had been anticipating the new carbon tax, have already implemented measures to reduce their carbon emissions, according to a report by a
Vietnamese media outlet.
Andrew Wyatt, deputy head of the International Union for Conservation of Nature (IUCN) in Vietnam, urged the government to establish policies to monitor and issue carbon certificates to Vietnamese exporters and producers by 2025. The IUCN, the ministry of natural resources and environment and the ministry of agriculture and rural development have been working closely together in recent years to build policy frameworks related to the global carbon market, he added.
Source: Fibre 2 Fashion
Pakistan’s economy has been facing a number of challenges in recent years, including low growth, high inflation, large fiscal and current account deficits, and declining foreign exchange reserves. Despite various efforts to spur economic growth, the country’s GDP growth rate has remained relatively low, averaging around 3-4% in recent years. In the last 5 years, Pakistan has received a total of $32 billion as loans from various sources including China, Saudi Arabia, Abu Dhabi, World Bank and the Asian Development Bank. In contrast, Pakistan has while earned $140 billion from exports. Expats have contributed $140 billion as workers’ remittances to the country during the same period. Given these inflow volumes and the 80/20 rule, Pakistan should focus on these two sectors aligned with relative weights of the expected outcome. Both exports and workers’ remittances are important sources of foreign currency for Pakistan and play a crucial role in its balance of payments, contributing 80% of total forex revenues. However, the relative economic importance of these two sources is significantly different where exports contribute directly to GDP growth, employment generation and provide the only sustainable long-term solution. Workers’ remittances, on the other hand, provide limited and indirect support to the GDP, as well as employment and are not considered as preferential source of forex. Pakistan’s exports have seen an upward trend especially during FY20-FY22 where textile exports grew by a phenomenal 55% in just two years. Workers’ remittances also posted a growth of 50% in these two years but are dependent on the world economic conditions especially the state of the economies from which they originate and hence not considered stable or sustainable in the long run. However, the state of remittances as well as exports is now depicting an alarming future. During H1 of the current fiscal year, remittances from 10 European Union countries (including Italy, Spain, Germany, France and Greece) sent to Pakistan showed negative growth. The number of remittances from the EU member countries decreased from $1.750 billion in the same period of the previous fiscal year to $1.544 billion, representing a decrease of 11.77%. With continued socioeconomic turbulence, Pakistan has always been relying on Foreign Economic Assistance (FEA) in various forms. FEA refers to government aid aimed at enhancing the economic growth and well-being of developing nations. This aid can take the form of concessional loans, grants, and technical support, and may be provided by both bilateral sources and multilateral organizations such as the World Bank, Asian Development Bank (ADB), Islamic Development Bank (IsDB), Asian Infrastructure Investment Bank (AIIB), or the United Nations (UN). Pakistan has had a history of being heavily dependent on FEA since its inception, which is not an ideal situation for a country’s long-term economic growth and development. There are several reasons for this: First, reliance on FEA often leads to a lack of fiscal discipline and weak revenue collection efforts. Governments tend to rely on external aid to finance their spending, which can lead to large fiscal deficits and a buildup of government debt over time. Second, FEA can create a culture of dependence, where the recipient country becomes reliant on external aid for its development and growth. This can lead to a lack of incentives for domestic reforms and a reduction in the country’s capacity to generate its own resources and finance its own development. Third, FEA can distort the local economy by providing resources to sectors or projects that may not be aligned with the country’s domestic priorities or economic strengths. This can create a misallocation of resources and reduce the overall efficiency of the economy. Fourth, FEA can also have negative impacts on the country’s currency, as large inflows of foreign aid can lead to an appreciation of the local currency and reduce the competitiveness of the country’s exports. Pakistan attracted more than $25 billion in the real estate sector in 2021. According to a research study, 25-30% of remittances went into the real estate sector while 21-22% from the Roshan Digital Account were invested in the sector. Traditionally, expats have invested in real estate sector of Pakistan through remittances. A slowdown in the real estate sector necessarily negatively impacts investments and remittances. Remittances have decreased drastically over time, increased tax on property being the primary reason. Previously, even resident Pakistanis used to invest their savings in the real estate sector; however, exorbitant property tax rates have forced them to spend their savings in buying gold, and/or dollars, thus parking their funds in non-productive assets. In order to reverse the decline in workers’ remittances, overseas Pakistanis including nonresident persons may be exempt from advance tax payable under section 236K of the Income Tax Ordinance 2001 on the purchase of immovable properties in Pakistan. Expats may only be liable for Advance Tax on Sale/Transfer under section 236C of the Income Tax Ordinance 2001. Remittances can be augmented to uplift Pakistan’s economic growth through this way. Focus on export growth necessarily involves promoting textiles as this sector contributes 62% of all exports. Pakistan’s textile industry, however, is facing a major crisis as it is rapidly losing credibility and competitiveness in the global market. The $19.3 billion industry, which relies heavily on exports, is experiencing a decline in global shipments. This situation is causing concern among its loyal international customers, who are becoming increasingly skeptical about the industry’s ability to meet deadlines and fulfill orders in a timely manner. The situation is further compounded by the shortage of dollars and basic raw materials, including cotton, dyes, and chemicals, which is causing many exporters to hesitate when booking new orders. As a result of which, the future of the industry looks uncertain, and unless measures are taken to address these challenges, the textile sector in Pakistan may continue to face a downward spiral. Expanding our exports especially in the textile sector and removing all hurdles for remittance inflows should be of utmost importance. No doubt, we should also continue to maintain strong relationships with our current lending partners and work towards attracting investment from new sources. However, time has now come to consider that despite the current challenges faced by Pakistan’s textile industry, it is crucial that immediate steps are taken to re-invigorate the sector. Some of the critical steps are: 19.3 The cost of conducting business in the textile sector has become unmanageable due to the elimination of Zero-Rating (SRO 1125) and the implementation of a 17% GST on exportoriented industries. The high sales tax has led to an increase in working capital and interest rates, causing a surge in smuggling, fraudulent activities, and the import of second-hand clothing. To alleviate the situation and secure working capital, it is imperative to immediately reinstate Zero Rating for the entire textile sector through SRO 1125. Address the looming liquidity crisis in the textile sector of Pakistan, caused by factors such as non-release of funds, high taxes, increased competition, and high energy costs. It is imperative to release all held-up funds such as deferred sales tax, TUF etc. as well as enhance working capital limits in accordance with rupee devaluation and increasing textile exports. Moreover, in order to ease the liquidity crisis and avoid defaults, moratorium on capital repayment from July 1st, 2022 to June 30th, 2023 may be implemented during the period of this financial hardship to allow the industry time to stabilize and recover. The current allocation of gas resources in the economy is unsustainable. To secure a sustainable gas supply and improve competitiveness, the priority of gas distribution to various sectors needs to be reevaluated. Priority should be given to productive sectors such as textile industry, with a focus on export-based industries over the domestic sector. This strategy would lead to increased exports, improved competitiveness, job creation, and a positive impact throughout the value chain. The current pricing disparities and promotion of non-productive use of limited resources in the gas sector should be addressed through reforms, such as the weighted average cost of gas (WACOG) and pricing that accurately reflects the economic value-added through gas. The maintenance schedule for industrial feeders disrupts 25% of the industrial production of businesses and negatively impacts industrial production and exports. The country is already facing low exports and industrial production, making it crucial to improve the quality of electricity supply. To address these issues, it is imperative to redouble efforts to improve the quality of electricity supply and mitigate the negative impact on industrial production and exports. The long-standing issue of provision of RCET’s to the entire textile value chain needs to be also resolved expeditiously. Likewise, the assessment and announcement of reasonable open excess charges of power (Wheeling) should also be promoted while it is also important to enhance the limit of 1 MW on solar to 5 MW for industrial net metering for promotion of alternative energy supplies. Increasing the limit of 1MW will also contribute to the economy by receiving the burden of setting up new solar plants providing them ‘Take or Pay’ contracts and killer sovereign guarantees. The government must reconsider its decision to sponsor new solar projects given this very real alternative. The curtailment on import of raw materials and spare parts has resulted in an acute shortage of both. This has led to non-maintenance of machinery, breakdown and running out of raw material leading to closure of textile mills. An urgent corrective action is needed. To achieve economic and political independence, Pakistan must focus on its textile industry to get out of the debt cycle it is stuck in. To do this, it must prioritize adding value to its exports, especially in the highly productive textile sector, through supporting higher value addition. Investment and improvement in production and export capacity is crucial and requires a long-term textile policy and access to energy resources. Increasing exports will also help create jobs and prevent social and economic unrest. In conclusion, while FEA can provide valuable resources for a country’s development, a heavy reliance on it can lead to a number of negative consequences for a country’s economy. It is important for countries to strive for greater self-reliance and to implement reforms that increase their own resource generation and strengthen their domestic economies.
Source: Business Recorder
China's exports of textile and apparel products registered stable growth last year, data showed. The export volume reached $323.3 billion in 2023, up 2.6 percent year-on-year, according to the China National Textile and Apparel Council. Textile exports gained 2 percent from a year ago to total about $148 billion, while exports of apparel and accessories rose 3.2 percent to over $175 billion. Large textile enterprises saw their combined operating revenue climb 0.9 percent yearon-year to nearly 5.26 trillion yuan ($780 billion) in 2023.
Source: China Daily
UK’s maritime sector is set to go net-zero after a multi-million-pound Zero Emission Vessels and Infrastructure (ZEVI) competition was launched to help decarbonise the country’s maritime tech. The £77 million government investment in clean maritime technology is expected to make sailing zero-emission ferries, cruises, and cargo ships possible in the UK within just two years. The funding will take the tech from the factory to the sea—identifying which projects will have a long-term impact in reducing emissions, said UK’s department for transport, Innovate UK, and member of parliament Mark Harper. Successful projects must show they could use this money to work with major UK ports and operators to launch a zero-emission vessel by 2025 at the latest. Examples of such technology include battery electric vessels, shoreside electrical power, ships running on low carbon fuels like hydrogen or ammonia, and wind-assisted ferries. Transport secretary Mark Harper said: “When it comes to tackling climate change, we are taking action on all transport modes, which is why we’re making sure our world-leading maritime sector has a greener future. This multi-million-pound investment will help the latest tech ideas become reality and ensure UK waters will play host to green cargo ships, ferries, and cruises in the next few years. Our funding will support a cleaner freight system, a more environmentally friendly tourism industry, and a net-zero maritime sector.” The multi-million-pound ZEVI competition will see innovative companies apply for the funding, which must be used to decarbonise technology both on board and shoreside. The investment demonstrates the government’s commitment to a new green age for maritime travel, which is free from emissions, in line with the 1.5-degree temperature target set by the Paris Agreement. Defence secretary and shipbuilding Tsar Ben Wallace said: “Our National Shipbuilding Strategy Refresh set ambitious plans to drive the green maritime revolution as a key step to reaching this government’s net zero targets. This investment is a clear statement that we are taking these plans seriously, helping to put the UK at the cutting edge of clean maritime technology while benefitting thousands of UK jobs.” The competition will be overseen by Innovate UK, which has a record of delivering similar competitions across government successfully. Innovate UK executive director for net zero Mike Biddle said: “This latest £77 million investment in clean maritime innovation is another major milestone in the delivery of the wider UK Shipping Office for Reducing Emissions (UK SHORE) programme to accelerate the transition to net zero. Innovate UK will work closely with the department for transport in delivering the ZEVI competition, resulting in multi-year real world demonstrations of clean maritime technologies around the UK.” The government is also calling on universities across the UK to join forces to establish a new Clean Maritime Research Hub, with £7.4 million funding from government and additional funding from academia and industry. Research in the fundamental science behind clean maritime technologies will be delivered by the hub, building evidence and expertise for the maritime sector. It will also support skills development across the industry and generate knowledge for maritime decision-makers. The hub will be delivered in partnership with and co-funded by the Engineering and Physical Sciences Research Council (EPSRC), part of UK Research and Innovation (UKRI). The ZEVI fund and Clean Maritime Research Hub are part of the UK SHORE programme, launched in March 2022 with £206 million in funding. UK SHORE aims to tackle shipping emissions and advance the UK towards a sustainable shipping future.
Source: Fibre2fashion
The Confederation of British Industry (CBI) has launched its first-ever business delegation to explore FTA opportunities in India. The delegation is focusing on key growth sectors where Indian and UK businesses can develop profitable partnerships such as innovation and sustainability. The visit also aims to share knowledge on how to scale up unicorns to addressing ways to increase trade in green goods and services between the two countries and contribute to net zero ambitions. The ongoing three-day trip that ends tomorrow is being led by the CBI’s Chief campaigns director, Syma Cullasy-Aldridge and feature some of the biggest names from British and Indian industries, including HSBC, Tide, Pernod Ricard, and ICICI Bank, CBI said in a press release. This visit comes in the backdrop of the UK negotiating the seventh round of the free trade agreement (FTA) with India. The potential FTA could boost trade with India by £28 billion a year by 2035 and increase wages across the UK by £3 billion. The programme will bring UK businesses together with key senior stakeholders from the British High Commission in Delhi and the government of India, to discuss growth opportunities in the Indian market for UK businesses and how an FTA can help unlock them. Syma Cullasy-Aldridge, CBI chief campaigns director, said: “With a free trade deal between the UK and India soon to be signed—and agreements such as the UK-India Young Professionals Mobility scheme already in place—now is the time for businesses to explore how to grasp the huge opportunities that India affords. “The CBI’s first ever delegation to India will put the promise of an FTA into practice—helping businesses develop links with key stakeholders and supporting UK firms to go for growth around the world.” Greg Hands, minister for trade policy at the department for international trade, said: “The UK-India relationship is going from strength to strength, so it is fantastic that the CBI is sending its first ever business delegation to India. “India is on track to become the third largest economy with a quarter of a billion middle class consumers by 2050—so the free trade deal we're negotiating with them could unlock huge benefits for UK firms.”
Source: Fibre2fashion
