PM Modi’s push for sustainable clothing: Why India can’t move away from fast fashion
Award scheme for common effluent treatment plants
No power can stop UP from getting developed: Piyush Goyal
Production Linked Incentive Scheme: How does it aim to drive India’s economic growth
‘Eco ties between UP, Italy to move at the pace of bullet train’
‘Road infra to boost textile industry biz’
Building the supply chain infrastructure for a Circular Apparel industry
Exporters see short-term impact on India’s exports to Turkey due to earthquake
Norway supports India's initiative on multilateralism & rule-based trade: Trade Minister
India seeks talks before WTO fixes ecommerce rules
India to become third-largest economy before 2030: Tamil Nadu Governor
INTERNATIONAL
1,200 global apparel machinery, tech solution providers to join Dhaka expo
Textile entrepreneurs seek economic zones for MMF manufacturing units
Investment in textile slows for energy crunch
China willing to accelerate FTA talks with Nicaragua: senior official
Good news for Bangladesh RMG as Western brands reopen business in Russia
NATIONAL
Many large Indian businesses that export manmade fibre and spun-cotton yarns to fear the devastating earthquake there will impact supply chains and their businesses. India is a large exporter of synthetic and other yarns to leading textile manufacturing centres in Turkey, including Gaziantep and Kahramanmaras, where it gets turned into carpets, formal wear and fast fashion and exported to Europe and elsewhere. Turkey Amit Lath, CEO of Sharda Group, said: “We have 18 clients in that region and so far we have only been able to make contact with one. We have no idea if the factories are still standing or not. The client I spoke to said both his in-laws had both died and he had not ventured out to the factory yet. Some textile factories have gone to ground zero. This is going to impact Indian businesses. Many will see their turnover hit.” The Sharda Group also buys open-end yarns from Turkey for European factories. “There is a shipment that was supposed to leave on Monday. We have paid the advance but we don’t even know if the factories sending the textiles still exist. I can’t ask the supplier as no one is in the right frame of mind. There could be shortages now as the factories use the open end yarn to make hospital bandages and mattresses.” “The sentiment in Turkey for exports from India has gone down. People are afraid of closing orders,” said Updeep Singh Chatrath, president and CEO of Sutlej Textiles and Industries in Mumbai, which sells yarn to companies in Bursa, Adana, Gaziantep, and Istanbul. “We have checked their wellbeing and most have replied to say they are all okay but there is definitely an impact on order booking,” he said. Dr S N Modani, MD at Sangam India in Bhilwara, which exports yarn to Gaziantep and Adana, said: “I am aware of three casualties in one business associate’s family in Adana where the building collapsed. A lot of owners have left the earthquake areas and gone to stay elsewhere, so no one knows how the factories have been affected. “We are slowing down our production in India until the situation improves. No one has gone back to work in the factories as there is no power.” Rakesh Mehra, chairman of Banswara Syntex, which exports yarn to Istanbul and Adana, said it was premature to predict the impact on his business, but it had definitely brought pressure on yarn prices. “I have not asked our clients if their factories are running as I just rang them to ask if they are okay,” he said.
Source: Times of India
Prime Minister Narendra Modi wore a blue vest made of recycled plastic bottles in Parliament last week. By doing so, he was trying to make sustainable clothing a conscious choice that needs to be made in everyday life to save the environment. Unfortunately, much talk of sustainable clothing in India continues to be an elite concern, confined to some designer labels and hand-crafted ingenuity. For the vast majority, fashion is still about fast-produced retail wear, an aspiration to be “with it,” affordability and brands than about making conscientious choices about our future in a resource-starved planet. For example, the polymer company that made Modi’s vest out of fibres and yarn from crushed and melted PET bottles, has been around for 14 years. Founded by an IITian, this clothing line is yet to enter the mass market or even establish brand recall. Yet, its production process saves at least 90 per cent water and 50 per cent energy when compared with traditional methods. Globally, the fashion industry causes 10 per cent of total carbon emissions and is a big pollutant. Worse, its yield of harmful greenhouse gases is projected to grow more than 50 per cent by 2030. The industry uses 93 billion cubic metres of water annually. Our National Climate Change Journal (2018) lists textile manufacturing as one of the most polluting sectors of the economy, emitting 1.2 billion tonnes of greenhouse gases. According to Levi Strauss, 3,781 litres of water are used during the production and use phase of one pair of its jeans while 33.4 kg of carbon dioxide is created throughout its lifetime. This includes growing cotton, processing denim and washing at home. Then there is the issue of waste, chemicals leaching into the water and non-biodegradable leftovers piled up in landfills. In fact, India’s primary challenge is that green wear doesn’t come cheap, confining it to the category of designer labels or high fashion. That’s because sustainable fashion still doesn’t sit easily on economics. It is not only about setting up a zero-carbon production and supply chain, it is also about including fair trade and ethical practices for labour, nurturing artisanship, recycling and upcycling every bit of sequin, all of which raises production costs. Challenges abound, beginning with the procurement of sustainable raw materials. Organic cotton, handlooms, even recycled fibres, polyesters or deadstock cost higher as do technical interventions needed to minimise water wastage, emissions, effluents and organic dyes. Scaling the business becomes a bigger challenge given the huge demand. Besides, maintaining a circular economy of fashion — which involves recycling, waste management and geometric cutting machines to reduce fabric waste — involves sophisticated technological processes, an indulgence at best by big fashion houses, who, like Stella McCartney, have developed a sub-brand. Fashion trends move rapidly with seasons and the pret market (mass production of designer wear). This creates the need for fast fashion, involving mass production lines, cheap labour and quick turnarounds. In India, the e-commerce boom and wide smartphone connectivity mean it is speedier to do so, setting off a cultural phenomenon called urbanisation, acquisitive consumption behaviour being its most reliable index. With India’s consumer demographics becoming younger , under 25, fashion and appearance consciousness will dictate buying behaviour. A McKinsey report has already predicted the number of online fashion shoppers in India to reach 500 million by 2030. Globally, too, fast fashion has driven the perception of clothing as a disposable item and a seasonal indulgence rather than a durable good. Data shows that in the last 20 years, the number of clothes bought has doubled from 50 billion garments to 100 billion. What about industry cred? Even in the West, that’s a tough call. Copenhagen fashion week is the only one which is laying down sustainability requirements for designers this year. The major fashion weeks are still far from firming them up. The European Union is just about testing digital passports on its sustainable clothing brands, where shoppers can scan the code on the label and access the item’s journey, from source to the consumer, tracking its water usage and carbon emissions. In India, this kind of circularity has a long way to go. One retail fashion experiment by the Aditya Birla group, which uses natural cellulose fabric, is just that — an experiment. One of India’s most successful pret designers, Anita Dongre, runs an eco-sustainable label called Grassroots but that is no match for her mainline mass brands. Without incentives in the fashion industry, rationalisation of the cost structure, and most importantly, legitimate endorsement by Bollywood and sports ambassadors, sustainable fashion will continue to be an elite obsession, not a practical choice. At the end of the day, only IndianOil, a PSU, has decided to make the Modi vest a part of its staff uniform. Without a glitzy campaign to capture the national imagination, “green clothing” will be reduced to efforts of women’s cooperatives and NGOs while “re-use, recycle, renew or upcycle” will remain confined to individual efforts to make a legacy statement of family heirlooms. Social media posts and hashtags may just not be enough to change buying behaviour. But we do have the world’s best skilled labour, weavers, handcrafters, innovators and are also the world’s largest producer of organic cotton. Can we make it all come together to match shop-floor economics?
Source: Indian express
An award scheme for Common Effluent Treatment Plants (CETPs) has been launched by Rajasthan State Pollution Control Board (RSPCB). The aim of ‘Award Scheme for CETPs in Rajasthan’ is to encourage the ‘polluting’ industries to curb it. Textile industries are water intensive and huge quantity of fresh water is used throughout textile manufacturing processes. The effluents generated from textile industries need to be treated by a suitable technology to remove harmful pollutants and chemicals. To treat water, CETPs are established in major clusters of small scale industries in Jodhpur, Pali, Balotra, Jasol, Bituja and Sanganer. In Bhilwara cluster, units have installed their own effluent treatment plants (ETP) with Zero Liquid Discharge (ZLD) facilities “RSPCB award scheme for CETPs is first-of-its-kind initiative aiming to involve CETPs to seek voluntary commitments for ensuring compliance of various environmental laws. The award to CETPs is expected to develop healthy competition among the plants,” said Naveen Mahajan, chairperson, RSPCB. He said this award aims at self-motivation of CETP operators to create an environmental management landscape where the plants can improve their environmental performance voluntarily and set higher goals for improvement and rewarded for better results. An independent jury of subject experts from the eminent academic institutions will evaluate the performance of CETPs on rating parameters. The performance of CETP will be evaluated on multiple parameters such as capacity utilisation, compliances, energy efficiency, use of renewable energy, innovations and CSR activities. Platinum medal with cash prize of Rs 21 lakhs will be given to winners of both categories. The cash prize can be utilised to upgrade and for innovation at the awarded CETP. This scheme will encourage CETPs to further improve their efficiency
Source: Times of India
Claiming that there is “no fear” with “good law and order”, Union Commerce Minister Piyush Goyal on Sunday said that no power can become a hurdle for Uttar Pradesh from being a developed state. Speaking at a session on “UP: Opportunities in Excise and Sugar Industry”, on the concluding day of the three-day Global Investors Summit in Lucknow, Goyal said: “It is easy to set up businesses and industries in Uttar Pradesh. The arrangements are easy, the law and order is good and… there is no fear. Investors are coming from different parts of the world to Uttar Pradesh. They are also reposing faith in the people of UP that they will vote for the decisive leadership of a double-engine government both in the state and in the country,” Goyal, who also holds the portfolios of Consumer Affairs and Food & Public Distribution and Textiles, said, referring to the BJP governments both at Centre and in the state. “There is a wave of development in Uttar Pradesh. Under the able leadership of Yogi Adityanath, Uttar Pradesh is moving, and no power can become a hurdle between for Uttar Pradesh from being developed,” Goyal said, adding that the excise collection has increased three times to Rs 42,000 crore from Rs 14,500 crore earlier. He also said that the Centre’s campaign of “Startup India” has done well in UP in the last few years. “In 2021, when the last ranking came, UP became the leader in the rankings for start-ups… Six years ago, there were 500-600 start-ups in the country, but today there are over 90,000 startups, of which 8,277 are in UP,” the Union minister said. According to Goyal, while preparing the BJP manifesto ahead of the 2017 Assembly elections in UP, senior party leader Amit Shah had expressed confidence that if the BJP comes to power and does three things – finish land mafia, sand mafia and liquor mafia – then there would be no shortage of resources or investment. “When we wrote the manifesto on what all has to be done, the Budget for implementing them was too much… Prime Minister Narendra Modi is very strict with this. If something has to be written in the manifesto, then we have to deliver. He doesn’t let us write a single line which he is not personally convinced about… I remember the day when we were sitting in Lucknow when the manifesto outline was drawn… The question was that we won’t have so many resources. Then, the question was referred to the PM, and Amit Shah expressed confidence that we have to do three things in UP. And, if we can, then there will be no shortage of resources or investment, and the future of UP will be bright for decades. The three he said were that we need to finish the land mafia, sand mafia and liquor mafia. If we can do these three things, then UP won’t fall short. The PM approved the manifesto with this confidence,” Goyal said. Minister of State (Independent charge) for Excise Nitin Agarwal also addressed the gathering.
Source: Indian express
The Union Budget 2023-24 has allocated ₹8,083 crore for various production linked incentive schemes. The amount is a three-fold jump from the revised budget estimate of ₹2616 crore for these schemes in FY22-23. The bulk of this money will be used for large-scale electronics manufacturing, which includes mobile devices, pharma, auto and auto components, and food processing. Production Linked Incentive Schemes (PLI) in India have been gaining traction as a policy tool to promote manufacturing and spur economic growth. The scheme, which has been adopted by many countries around the world, offers fiscal incentives to manufacturers who invest in production capacity and technology upgrades in order to increase their competitiveness in the market. In India, the government introduced the Production Linked Incentive Scheme in April 2020, with the aim of promoting manufacturing activities in the country. The scheme, which was part of the Atmanirbhar Bharat Abhiyan announced by Prime Minister Narendra Modi, is aimed at making India a global manufacturing hub by providing incentives for investments in the manufacturing sector.
How do PLI schemes work?
Under the PLI scheme, the Government of India provides incentives to companies investing in the manufacture of specified goods or services. The main objectives of the PLI scheme are to create employment opportunities, attract investments, and boost exports. The objectives are achieved by providing fiscal incentives to domestic companies, including those engaged in the manufacture of products that are essential to the Indian economy. Under the scheme, the government provides incentives to companies investing in high-tech manufacturing, electronic goods, and new technology such as 5G telecom equipment, lithium-ion batteries, and medical devices.
How did PLI schemes come into action?
The Indian Government introduced a Production Linked Incentive (PLI) scheme as a part of the national policy on electronics, to give incentives of 4-6% to electronic manufacturing components such as mobile phones, transistors, diodes, and so on. The main aim of this scheme was to encourage foreign investors to set up their manufacturing units in India as well as promote local manufacturers to expand their units, resulting in better job opportunities for the people. It initially targeted the large scale electronics manufacturing sector in April 2020 and by the end of the year, ten more sectors including food processing, telecom, electronics, textiles, specialty steel, were also included in the PLI scheme. Finance Minister Nirmala Sitharaman, in the Union Budget 2021, announced that thirteen additional sectors would be added to the PLI Scheme, valid for a period of five years. The scheme seeks to reduce import costs, improve the cost competitiveness of domestically produced goods, increase domestic capacity, and promote exports.
What are the sectors covered under PLI schemes?
PLI covers several sectors such as mobile manufacturing and specified electronic components, critical key starting materials/drug intermediaries & active pharmaceutical ingredients, manufacturing of medical devices, automobiles and auto components, pharmaceutical drugs, specialty steel, telecom & networking products, electronic/technology products, white goods (ACs and LEDs), food products, textile products (MMF segment and technical textiles), high-efficiency solar PV modules, advanced chemistry cell (ACC) battery, drones and drone components. The scheme has helped to spur growth in the manufacturing sector and has attracted significant investment from both domestic and foreign companies. It is expected that the scheme will continue to play an important role in the development of the Indian economy in the coming years.
Source: Mintgenie.livemint.com
Italian Embassy’s trade commissioner Alessandro Liberatori on Saturday said that the decades-old economic relations between Uttar Pradesh and Italy will not only deepen but will go forward at the speed of a bullet train. rain. Citing the similarity in trade synergy between Uttar Pradesh and Italy, he said that there were unlimited possibilities of trade between the two. “Italy will play its role in the field of technology, infrastructure, leather, textile, drugs and chemicals in UP,” he said. “In the next few years, we will give our full cooperation in promoting smart city, mobility, smart grid (electricity distribution and storage solution), gas transportation and natural gas,” Liberatori said. Meanwhile, during an interaction with Chief Minister Yogi Adityanath on Saturday, a delegation of the European Investment Bank, led by its vice-president and former Belgian Prime Minister Kris Peeters, assured him that they would invest in various infrastructure projects in UP. Peeters spoke about the bank’s investment in the Metro Rail project in UP and said that the bank was also considering providing further cooperation to the state in the field of various infrastructure projects like RRTS in Meerut, electric vehicles charging and aviation.
Source: Times of India
Sharing the growth potential of Bundelkhand, Union minister for state (MSME) and Jalaun MP Bhanu Pratap Singh Verma said that the erstwhile backward region is set to leap ahead with better road connectivity and infrastructure. “Handloom and textile industry players coming to the state have best road infrastructure to expand business. The Yogi government has signed proposals worth Rs 1.88 lakh crore in Jhansi while MoUs worth Rs 1.35 lakh crore have been formalised,” he said. Over 8,000 products are being manufactured in UP and 11 crore people are getting employment. Director general of Northern India Textile Research Association Dr Arindam Basu provided inputs for the growth of the sector to senior officers of the UP government.
Source: Times of India
Under the aegis of UN Climate Change, brands and retailers worked during 2018 to identify ways in which the broader textile, clothing and fashion industry can move towards a holistic commitment to climate action. As a result, industry players made bold commitments to enable circularity, reduce 45% emissions by 2030 and achieve net-zero by 2050. Initially these commitments were focused on Scope 1 and Scope 2 emissions, which are produced by the companies directly or through the purchase of energy. However today, most companies have pledged to reduce their Scope 3 emissions generated in the upstream and downstream value chain. This is a crucial step since, for many companies, Scope 3 accounts for 80% of their overall climate impact. Given the scale of the problem, it is imperative to set ambitious targets and implement a well thought approach to deliver on them. Achieving net-zero for Scope 1 and Scope 2 themselves requires overcoming formidable economic and technical challenges. Scope 3 presents an additional layer of complexity such as aligning internal stakeholders on goals and milestones; working collaboratively with supply chain partners, customers; keeping all partners engaged in multiyear change efforts; non-transparent carbon accounting and tracking mechanisms. An in-depth assessment through in-person consultations with Textile & Apparel (T&A) stakeholders, which included industry leaders such as H&M, IKEA, Marks and Spencer and their manufacturing partners, and learning’s from our initiatives have identified key gaps that need to be addressed to develop the supply chain infrastructure for circular and net-zero apparel: Lack of the implementation of a cohesive milestone-based strategy to decarbonize the supply chain, as well as operations. Poor availability of commercially scalable circular, low-carbon technologies that are in sync with the decarbonization needs of the T&A industry. Limited awareness and technical capability to measure, report, and set decarbonization goals as per the Science Based Targets. Hence Intellecap, through its initiative Circular Apparel Innovation Factory (CAIF), is working with upstream supply chain partners primarily SMEs to reduce carbon emissions, through testing, validating and commercial adoption of circular and low-carbon solutions in resource efficiency (energy, water), alternate materials (low-carbon dyeing alternatives, etc.), and from recovering value from waste (fiber2fiber recycling). Based on our learnings, we believe that four steps need to be followed by organizations that are committed to multiplying their own efforts and decarbonizing the supply chain through supplier engagement. They are:
1. Emission Mapping & Profiling: Understanding and quantifying carbon emissions across the supply chain, product impact & climate change risks and developing BAU projections.
2. Set Roadmap and Create Targets: Developing sustainability strategies, targets and roadmaps at process and organization level, aligned with science and business requirements.
3. Reduce Footprint: Identifying & deploying best available technology solutions (input materials, energy efficiency, water mgmt. waste to value, etc) that perform better than the benchmarks; adopting global best practices.
4. Adopt offset mechanisms: Address hard-to-abate emissions through off-setting projects such as investing in impact funds, identifying climate finance solutions, etc
Research findings have indicated that existing solutions which include renewable electricity, sustainable materials and processes, alternate fuels, etc., have the potential to reduce supply chain carbon emissions by 47%. However, for the balance there is a need to test, validate and adopt innovative technologies and business models such as next generation materials, waterless dyeing, dry processing just to name a few. In order to address this, through our ongoing initiatives we have successfully worked towards building a strong business case for low carbon / circular supply chain solutions available in India. Project ACE, a two-year program (2021-2023), designed as a common action platform with the singular purpose of establishing a business case (economic value creation for the private sector organizations while reducing their environmental footprint). To create a robust business case, CAIF designed demonstration pilots with multiple stakeholders (brands and their manufacturing partners) to test, validate and commercially deploy high potential low-carbon solutions in areas including energy efficiency, water efficiency, alternative dyes and chemicals, digital solutions in textiles waste traceability, etc. In the last 12 months alone, we have undertaken six pilots and delivered the below outcomes:
Improvement in energy efficiency: 15 to 20%
Reduction in process heat: 25%
Water Recovery: Up to 95%
Reduction in chemical & biological effluents: 50 to 75%
Provided end-to-end traceability for ~850 Tons of Textiles waste (2x manufacturers; 4 months)
Solutions indicated a payback period of 2 to 3 years
(work to measure the impact on carbon footprint is currently in process)
According to our private sector partners, three key aspects were critical in design /execution of the pilots along with expediting the buy-in from leadership / board teams for eventual long-term commercial contracts:
a) The ability of CAIF to source and evaluate high-potential innovative solutions
b) Technical assistance provided by CAIF to innovators (from problem-solution through product-market fit) and the capacity building support provided to manufacturers and supply chain partners
c) Provision for a pool of capital available for both innovators and brands /manufacturers to cover the cost of demonstration pilots that expedited approvals & enabled collaborations
Hence based on these learnings we believe there is a need for and are working towards designing long term transformation programs with brands and their supplier networks to lay the foundation of a circular supply chain infrastructure and catalyze their journey to NetZero.
Source: Times of India
India’s merchandise exports of commodities such as cotton, manmade yarn and textile dyes may be impacted in the short run to earthquake-hit Turkey, according to exporters. Two powerful earthquakes hours apart on Monday last week caused widespread damage to property and killed more than 28,000 people, leaving millions homeless in Turkey. The earthquakes also caused damage to the infrastructure and logistics network with the Port of Iskenderun remaining closed for around a week. Exports to Turkey increased to USD 6.2 billion during April-November 2022 against USD 5.1 billion in the corresponding period in 2021. Federation of Indian Export Organisations (Fieo) Director General Ajay Sahai said that the extent of the damage in Turkiye is yet not known and thus its impact on exports is difficult to ascertain. However, the earthquake will further depreciate Turkish Lira , which has significantly depreciated recently, and has touched its record low following the earthquake making imports costlier and impacting the demand, he said. “Since the textile manufacturing centres of Gaziantep and Kahramanmaras provinces are worst-affected, our exports of cotton and manmade yarn and textile dyes may be impacted in short run,” Sahai said. Gaziantep is a province in south-central Turkey. It is a major manufacturing hub of that country. Sharing similar views, Hand Tools Association President S C Ralhan said that India’s exports to Turkiye are increasing. “Trade may get impacted in the short-term only due to the earthquake there, but not in the long run. There was no news so far from the MSME segment exporters of any issue while exporting to Turkey so far,” Ralhan said. In 2021-22, India’s exports to Turkey stood at about USD 9 billion, while imports aggregated at USD 2 billion in the same fiscal. The major Indian exports to Turkey include mineral oils and fuels, man-made filaments and staple fibres, automotive spare parts and accessories, organic chemicals. Turkiye’s exports to India include broken/unbroken poppy seeds; machinery and mechanical appliances, iron and steel articles thereof, inorganic chemicals, pearls and precious/semi-precious stones and metals (including imitation jewellery), and marble. The Indian community in Turkey is small, mostly working in business establishments and universities in Istanbul and Ankara. A small number of professionals also work on certain projects there. State Bank of India has a representative office in Istanbul. Turkish Airlines (in a code sharing arrangement with Air India) operates daily flights from Istanbul to Mumbai and Delhi. Think tank GTRI exports in February and March may be tough, but from April onwards, India’s exports to Turkey will grow at normal pace. Global Trade Research Initiative (GTRI) said the critical factor will be how soon Turkiye’s port system resumes clearances at normal speed. Currently, operations at the Port of Iskenderun, one of two main container ports on Turkiye’s southern coast, remain suspended as it caught fire during the earthquake, it said. “Exports were halted, and most containers were diverted to nearby ports. Export dwell time rose to above ten days. It may take about a month for normal operations to resume. The earthquake has affected the functioning of the central Black Sea and Mediterranean ports. But, on the positive side, Turkey has a long coastline with more than 180 ports,” GTRI co-founder Ajay Srivastava. He added that trade in February and the first fortnight of March may remain adversely impacted due to damage to the ports due to the earthquake. However, India’s merchandise exports will perform better from April, when the port operations normalize. “In the short term (2-6 months), India’s merchandise exports in products that account for 78 per cent of the export basket will see normal growth. Exports in the remaining 22 per cent may be stressed. Overall, trade may remain stable,” he added. Exporting yarns, dyes, cut and polished diamonds, and jewellery may witness negative export growth, he said. India’s cotton, nylon, and synthetic yarn exports exceeded USD 700 million in 2022. Due to depressed consumer demand and damage to a few textile centres, there may be a short-term decline in exports of textile products, the GTRI said.
Source: Financial express
Norway’s Trade and Investment Minister Jan Christian Vestre has stated that his country fully supports India's efforts in promoting multilateralism and a rules-based trade system. The minister praised the Indian government's leadership at the G-20 and highlighted the importance of continuing the process of globalization. "That's an initiative our government supports 100 per cent and we also appreciate your leadership at G-20 and that you are so focussed on multilateralism and that we need rules-based trade system," Vestre said in an interviewI. The Norwegian minister, who was here on a two-day visit to India last week, said that some countries are turning away from the path of globalization "We see now that some countries are turning in different directions but it is very important now that we continue this process of globalization-free trade, sharing is caring and that will be beneficial for all of us so all the initiatives from the Indian side that can promote this approach to how should we organize our world will have full support from Norwegian side," the minister emphasised. He spoke highly of the 2nd India-Nordic summit which held last year, calling it a great success. He expressed pride in the joint statement made by India's Prime Minister Narendra Modi and the five Nordic prime ministers, which he sees as a testament to the strong ties between the two regions. "We really hope we can gather the prime ministers again, hopefully, next time in Norway, because another thing we will follow up on right now," he added. The minister stated that he feels that the ties have "never been stronger than now" and there is a huge momentum driving them forward with "more close cooperation" in various areas, including the maritime industry, hydrogen, renewable energy, batteries, rare earth minerals, technologies, and innovations. Trade between India and Norway has doubled in the last three years, and the minister stated that there is huge potential for even more cooperation in the years to come. "It is very important to connect companies from India with firms from Norway so that they can work more closely together, exploring new technologies, do common projects and there is a need to increase common investment. And there are a lot of things we can share such as competence, knowledge, and experience," he underlined. India and Norway have decided to follow up on their initiatives in the areas of fuel cell technologies, green ammonia, hydrogen, and charging infrastructure with "specific action plans," with the aim of translating their discussions into tangible actions.
Source: Economic times
India has pitched for deeper deliberations to take place before the World Trade Organisation (WTO) defines rules in the ongoing discussions on e-commerce trade. An official statement said this is being and equitable development of the service at a global level. In line with the same, two papers have been prepared by India for consideration of the Work Programme on Commerce (WPEC) under the WTO. These documents are setting the tone of discussions around consumer protection, and the role of digital public infrastructure in promoting e-commerce. According to commerce ministry officials, the ongoing deliberations on ecommerce rules at the WTO have not taken into account multiple issues that need to be discussed in detail. These matters, such as liabilities on countries that host defaulters in e-commerce transactions, will require multilateral consensus before the rules achieve finality At present, a group of 87 WTO member countries (largely developed ones) are deliberating on digital trade and e-commerce rules. Negotiations were launched in January 2019. India has till now stayed away from these "plurilateral" talks. "The plurilateral discussions have not deliberated on these issues in detail. So all members first need to discuss these issues. First, let us have a threadbare discussion," said Darpan Jain, joint secretary at the ministry of commerce and industry. He said that India would want e-commerce issues to be discussed under the larger WPEC to ensure that all the stakeholders are taken into account. "We have not suggested any rules or binding obligations in the papers we are presenting before the WTO. They will form the basis for discussions," he added.
Source: Economic times
Highlighting the country's growth trajectory, Tamil Nadu Governor RN Ravi said India has become the world's fifth largest economy because of the people and not the government. Addressing students at an event in Coimbatore on Saturday, Governor Ravi said, "If today India is the 5th largest economy in the world, it is not because of government. It is because of our people. Before 2030 we will be the third-largest economy. In 2047, we will be the largest economy in the world. We have no doubt about it. Even the world has no doubt about it." He said the country is marching ahead as the fastest-growing economy while the entire world is reeling under recession. Highlighting the country's growing digital ecosystem, Governor Ravi said the Digital India movement has given a fillip to entrepreneurship and startup culture. He further emphasized sustainable development by leveraging green technology and sustainable practices.
Source: Business-Standard
INTERNATIONAL
Local textile and garment manufacturers will get an opportunity to meet with their global suppliers of the latest technology and machinery under one umbrella as a four-day exhibition kicks off on 15 February in Dhaka. "About 1,200 global machinery and technology solution provider brands from 35 countries will display advanced technologies, cutting-edge solutions, and the latest trends of the industries at 1,600 booths," said Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), at a press conference at a city hotel on Sunday. The BTMA, Yorkers Trade and Marketing Service Co Ltd and Chan Chao International Co Ltd will jointly organise the Dhaka International Textile and Garments Machinery Exhibition (DTG–2023) at the International Convention City Bashundhara. The 17th edition of the DTG is taking place after a break of three years due to the Covid-19 pandemic. Judy Wang, president of Yorkers Trade and Marketing Service Co Ltd and chief executive officer of Chan Chao International Co Ltd, was present at the event. This year, the DTG will exhibit comprehensively covering equipment, material, and accessories needed in different stages of the textile and garment industrial chains, including spinning, weaving, knitting, dyeing, printing, finishing, and garment manufacturing segments. The exhibition, which is expected to be inaugurated by the prime minister's private industry and investment adviser Salman F Rahman, will be open to the public from 12:00pm to 8pm daily until 18 February. According to Mohammad Ali Khokon, the government recently increased gas prices in order to ensure uninterrupted supply to the industry, but the situation has not yet improved. "We have no information about any improvement in the supply of gas, although the government wants to import LNG," he added. The BTMEA president also expressed his concern over the uncertainties that loom large over the potential for new investments worth about $4 billion in the country's primary textile sector due to the gas and electricity crises. He further said that a part of those already took place in 2022 and is in production, and the rest are in the pipeline. "There is a doubt whether the potential investments will take place without ensuring an uninterrupted supply of quality gas and electricity," he added. If the government could have ensured the required infrastructure and energy, the investment amount might be increased more as the government is going to establish 100 economic zones, said the BTMA president. Khokon demanded that the government complete the development of at least 10 special economic zones for the primary textile sector on a priority basis so that entrepreneurs could set up non-cotton based yarn and fabric mills in the area. The demand for artificial fibre-based garments has been increasing at a faster pace in the global market, and the share of non-cotton-based apparel would exceed 70% within two or three years, the BTMA president said.
Source: Tbs news
The Textile sector's entrepreneurs need eight to ten economic zones with speedy completion to set up factory units to manufacture man-made fiber (MMF), said Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA). He added that there has been much talk over the broad usage of MMF and investments in the Bangladeshi textile and apparel industries. The government is creating roughly 100 special economic zones to entice investment. "We want all kinds of rewards for investment across the mentioned economic zone in the shortest amount of time," he said. He was speaking at the pre-event press conference regarding the 17th Dhaka International Textile and Garment Machinery Exhibition (DTG) 2023 in the capital on Sunday. “In 2021 and 2022, the textile sector attracted investment of worth $6060.08 million and $4148.14 million respectively. We think there would have been more investment if we had adequate gas, electricity and infrastructure facilities,” he added. Responding to a question, he said that there are about 20 recycled fiber factories which produce cotton from garment jhut and textile waste. “But production is at risk as garment jhut and textile waste are exported or smuggled although we've about five mills that are recycling various plastic products into fiber, 50 mills are manufacturing yarns from polyester fibre, viscose staple fibre, flux fiber and lyocell,” he added. He also said that the amount of MMF being used in the country is very insufficient considering the future. “In view of this, I request the government to stop the export of any garment jhut, textile waste used in the manufacture of recycled fiber,” he urged. The textile industry is a capital-intensive industry and within the next two or three years, the global MMF clothing demand will exceed 70% though Bangladesh has only a stake of $10 billion in the $700-billion market. “Our entrepreneurs have no shortage of passion and courage. However, factors currently discouraging investment include the Ukraine-Russia war, disruptions in global supply chains, abnormal hike in energy and power prices and the dollar crisis,” he added. The government has already hiked the price of gas to ensure uninterrupted gas supply but the situation is yet to improve. “We have doubts about new investment in the textile sector unless uninterrupted and quality supply of energy and power is ensured,” he added. He is also positive regarding the government's decision to purchase LNG from the spot market to solve the energy crisis. “I am requesting the honorable prime minister that all concerned in the power sector take the initiative to implement this step quickly. Otherwise, the current condition of our mills will worsen,” he added. The four-day event of the 17th DTG is going to be held from February 15-18 by the BTMA in association with Yorkers Trade and Marketing Co Ltd, Hong Kong at the ICCB of the capital after a three year pause due to the Covid-19. The objective of organizing this exhibition is to display the overall subject of the primary textile sector and the success or failure of the sector. This year, about 1200 renowned textile and garment machinery companies from 35 countries are participating in 19 halls of ICCB with 1600 booths. DTG brings the textile and RMG sector under the same platform with world-renowned buyer brands, helping them to export their products by adapting to the ever-changing technology.
Source: Dhakatribune
Investment in the primary textile sector in Bangladesh has already slowed owing to the persisting gas and electricity crises and entrepreneurs yesterday warned that it might fall further if the energy situation does not improve. Investment in the primary textile sector in Bangladesh has already slowed owing to the persisting gas and electricity crises and entrepreneurs yesterday warned that it might fall further if the energy situation does not improve. The local primary textile sector received new investments worth $. billion in and $. billion in despite the coronavirus pandemic. "The investment would have been much higher had there been no serious challenges such as the gas crisis and poor infrastructures, " said Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), at a press conference at the Hotel Sonargaon in Dhaka yesterday. "If the supply of gas with adequate pressure and electricity doesn't improve significantly, there is a doubt whether there will be significant investments in the sector." He said some factors such as the severe fallout of the Russia-Ukraine War, the disruption in the global supply chain, the abnormal price hike of gas, and the acute shortage of US dollars are standing in the way of investment in the sector. Bangladesh has been going through a gas shortage after the eruption of the war, which battered the global supply chains and pushed the prices of energy to higher levels. The government in July paused the spot purchase of LNG due to a steep rise in price in the global market and a sharp fall in the foreign currency reserves. The move has affected industrial output as gas supply to factories is rationed. Khokon urged the prime minister to resolve the energy crisis in the primary textile sector as soon as possible. "Otherwise, the situation at the factories will only worsen." Last month, the government raised the retail price of gas by . per cent to . per cent for industries, power plants and commercial establishments, as it looks to lessen its unsustainable subsidy burden amid a narrow fiscal space. From this month, the price of gas used for power generation increased to Tk for each cubic metre, up . per cent from the existing rate. For captive power plants and industries, gas will cost Tk per cubic metre. That is a per cent hike for large industries, . per cent for medium industries and . per cent for small and cottage industries. For captive power plants, the rate was increased by . per cent. Commercial establishments like hotels and restaurants will pay Tk . per cubic metre, up . per cent. Even after the abnormal price hike of gas, the gas supply scenario has not improved in the primary textile sector and the production is still suffering, Khokon said. The government has initiated the process to import LNG from the spot market to meet the gas demand for power generation during the upcoming Ramadan, summer and the ongoing agricultural irrigation season. The BTMA chief welcomed the decision, saying this may lessen the gas crisis at factories. The primary textile sector supports the country's readymade garment sector, which accounted for about per cent of national exports of $ billion in the last financial year. Currently, Bangladesh has spinning mills with a combined production capacity of . billion kilogrammes of yarn a year. The number of weaving mills, including small, medium and large factories, is , and their annual collective production capacity is seven million metres. Twenty-five textile mills have a production capacity of million metres and denim mills can produce million metres of fabrics every year. Monday, February , E-paper Today's News বাং লা News Opinion Sports Business Entertainment Life & Living Youth Tech & Startup Feature M Overall, the primary textile industry has seen a collective investment of investment of . lakh crore, according to the BTMA. The primary textile sector is also going through some other challenges. For instance, many mills are struggling to run their operations in full swing because of a shortage of scrap in the local market as a section of traders exports the textile waste. Moreover, five mills involved in the manufacturing of yarn through the recycling of plastic goods are also experiencing a shortage of raw materials. Currently, nearly local mills make man-made fibre like polyester, viscose, staple fibre, flux fibre and lyocell, but Khokon said the production is not adequate to meet the rising demand for artificial fibre. "The government should stop allowing the export of textile scrap to increase the supply of raw materials in the recycling industries." The country's share in the $ billion global manmade fibre is only $ billion, which indicates that it has a lot of opportunities to raise its share. The press conference was organised to brief reporters about the upcoming th Dhaka International Textile and Garment Machinery Exhibition, which will be held at the International Convention City, Bashundhara in Dhaka between February and February . More than , companies from countries are expected to take part in the event. The exhibition was supposed to be held in but it had to be deferred because of Covid-.
Source: The daily star
China is willing to accelerate comprehensive free trade agreement (FTA) negotiations with Nicaragua, promoting bilateral development in deepening mutually beneficial cooperation, Wang Yi, director of the Office of the Foreign Affairs Commission of the Communist Party of China Central Committee, said on Saturday. Wang's remarks came as he met with Laureano Ortega, advisor on investment, trade and international cooperation at the Nicaraguan president's office. The two countries resumed diplomatic ties more than one year ago. The senior Chinese diplomat commended the progress made by China and Nicaragua, saying that under the strategic guidance of the leaders of the two countries, cooperation between China and Nicaragua has advanced rapidly, bringing the two countries to the forefront of China-Latin America relations. The resumption of bilateral ties conforms to the trend of history, serves the interests of the two peoples and will open up broader prospects for the allround development of bilateral relations, said Wang. Ortega said that Nicaragua firmly supports China's efforts to safeguard national security and territorial integrity, and opposes external interference, according to the Xinhua News Agency. Nicaragua supports the Belt and Road Initiative (BRI), the Global Development Initiative and the Global Security Initiative proposed by China, Ortega added. Since the resumption of diplomatic ties between China and Nicaragua, the two sides have worked together to efficiently promote bilateral cooperation in various fields including trade and the economy, with fruitful and practical results. In July 2022, China's Commerce Minister Wang Wentao and Nicaraguan Foreign Minister Denis Moncada signed the early harvest arrangements for a bilateral FTA via video link. They also announced the beginning of FTA negotiations. "Nicaragua will speed up FTA negotiations with China as the consumption power in the world's second-largest economy will undoubtedly boost Nicaragua's development. During the negotiations, cooperation in the fields of trade and investment, especially in infrastructure construction via the BRI, will expand," Zhou Zhiwei, an expert on Latin American studies at the Chinese Academy of Social Sciences, told the Global Times on Sunday. In 2022, despite the COVID-19 pandemic, bilateral trade reached $759.6 million, data from China's General Administration of Customs showed. Zhou noted that Nicaragua can further explore China's huge market and expand exports of textiles and agricultural products to China. In addition to Nicaragua, China has accelerated economic cooperation with other Latin American countries based on the principles of equality and reciprocity. China and Ecuador concluded bilateral FTA negotiations at the technical level, which will definitely inject a strong impetus to upgrade the quality of bilateral trade. China's trade structure with Latin America is largely complementary, Zhou noted. "On the one hand, bilateral cooperation is important for China's energy and food security. On the other hand, if Latin American countries can seize the dividends and opportunities brought by the development of the Chinese economy and further expand the Chinese market, their GDP growth will be very significant." More importantly, China's ability to invest and its openness to international cooperation, with full respect for each other's sovereignty, is a very desirable form of cooperation for Latin American countries, Zhou said. In a recent exclusive interview with the Global Times, Ambassador of Ecuador Carlos Larrea to China said that China does not impose any conditions on countries with which it cooperates, and this is the cornerstone of a relationship of great friendship, respect and trust.
Source: Global times
Western brands reopening businesses under new names in Russian markets have spelled optimism and opportunities for Bangladesh apparel exporters. Many foreign brands are importing goods for the Russian market through other countries – Turkey, UAE and Singapore – industry insiders said. According to a Swiss study, despite widespread outrage over Moscow's war in Ukraine, few Western companies deserted the country, the AFP reports. Talking with The Business Standard, a leading fabrics manufacturing company's executive director seeking anonymity, said, "They have business with two Russian brands - Gloria Jeans and O'Stin [Austin] - for a long time, which is continuing till now." Brands like ZZX, H&M and Inditex have launched new business offices in Dubai under new names to circumvent the political pressure. "Those new companies are also doing business with us. They source fabrics from and import goods through third countries like Turkey. They have been doing business through third countries for a long time, but currently it has become very strict due to the EU's position against Russia," the top textile official added. In March 2022, several Russian banks were excluded from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system, which made it difficult for Russian exporters to secure payments. On the other hand, major retailers and brands announced that they were leaving the Russian market. As a result, Bangladeshi exporters face difficulties getting their payments on time. Some exporters received their payments from third countries like Turkey or in Chinese currency through other third countries. According to the Export Promotion Bureau (EPB), apparel exports to Turkey and the United Arab Emirates increased to $117.43 million with over 83% growth and $155.35 million with over 22.28% growth respectively between July –December in FY23 over the same period last year. Bangladesh exported $665.32 million worth of goods to Russia in FY21, of which, $607 million came from apparel and textile exports, according to EPB. However, the apparel export value fell by 47.06% to $180.64 million by July – December in FY23 compared to the same period last year. Md Shahidul Islam, managing director of Rupa Group, which had business in the Russian market till last year, said, "Currently, we have no business in this market. Due to the ongoing war, it has become quite risky. "My buyers had paid all dues, which was halted due to this war," added Shahidul. Before the war, the company exported half a million dollars worth of sweaters to Russia each month. Young 4 Ever Textiles Ltd Managing Director Rajiv Chowdhury said, "Currently, I have no business in this market even though alternative routes are available." There are some new routes open to doing business with Russia, he said, adding, "I know some of our exporters have continued their business through Dubai and Singapore." Despite having interest from buyers, Rajiv thinks that doing business through an alternative route will be risky for him, as he received two-and-a-half months of delayed payments when the Russia-Ukraine war broke in February last year. Bangladesh Textile Mills Association President Mohammad Ali Khokon said, "Those Russian chain stores that shut down due to the war are reopening under different brand names. Demand is not falling, which is good news as we want our fabrics and apparel to be sold. "We are now seeing that the global political situation is slowly improving. So even though 2023 is not starting out well, we believe it will get better by the end of the year," he added. Only 8.5% of Western companies left Russia Researchers at the University of St Gallen and the IMD Institute in Lausanne have delved into how many companies based in the European Union (EU) and in G7 countries have divested from Russia since its full-scale invasion of Ukraine began last February. Their findings reveal "a very limited retreat of EU and G7 firms from Russia, [and] challenge the narrative that there is a vast exodus of Western firms leaving the market," said the St Gallen University in a statement, AFP reports. "In effect, many firms headquartered in these nations have resisted pressures from governments, the media, and NGOs to leave Russia since the invasion of Ukraine." The study published last month by the online Social Science Research Network (SSRN) — a publisher of "pre-print" studies not subjected to scientific peer review — showed that less than 10% of EU and G7 companies with Russian subsidiaries had divested them. When Moscow launched its invasion, 1,404 companies based in the EU and the G7 counted a total of 2,405 subsidiaries that were active in Russia, the study showed. Only 120, or about 8.5% of those companies, by late November, had divested at least one subsidiary in Russia, study authors Niccolo Pisani and Simon Evenett found. There were more confirmed exits by companies headquartered in the United States than those based in Europe and Japan. But even with the United States, fewer than 18% of US subsidiaries operating in Russia had been completely divested since the invasion began, the study showed. By contrast, 15% of Japanese firms and only 8.3% of EU firms had divested from Russia, it said. Of those who have left their Russian subsidiaries in place, 19.5% are German and 12.4% are US-owned, according to the study. The research also showed that the exiting Western firms only accounted for 6.5% of the total profit before tax of EU and G7 firms with active commercial operations in Russia. They, meanwhile, accounted for 15.3% of the total number of employees working for such firms in Russia. This indicates that, on average, the exiting firms tended to have lower profitability and larger workforces than the firms that remain in Russia, the study said. These findings, the university statement said, "call into question the willingness of Western firms to decouple from economies their governments now deem to be geopolitical rivals."
Source: Tbs news
