INTERNATIONAL
NATIONAL
India holds a measly 4% market share in the textile industry globally. However, it is critical in providing employment and livelihood in the country as the second largest employing sector, with over 45 million directly employed, including 35.22 lakh handloom workers. Within the textile sector, India’s man-made fibre market is slowly but steadily becoming an emerging sub-section. Man-made fibres are fast becoming a favourite choice amongst many weavers and spinners in India. They contribute to around 100% of non-cotton fabrics and blended fabrics. In FY 2020, the overall demand for man-made fibres and yarns stood at approximately ~6,066 ktpa. With the rise in demand for technical and medical textiles, India has seen a surge in demand for man-made fibres. Additionally, with the increase in the price of raw materials, such as cotton, many weavers and spinners have started blending man-made fibres to stay cost competitive. Production of fibres like cotton is also heavily dependent on factors like weather conditions and crop yields. As a result, fibres like viscose and polyester provide an alternative to weavers and spinners in lull periods. In 2022 when the Indian textiles industry was faced with a severe shortage of Cotton and prices became unaffordable, the user industry used Viscose to maintain their production and sustain the livelihoods of workers. Viscose and Polyester are also flexible and durable, hence able to endure high-speed machinery. Moreover, these fibres also have multiple uses due to properties such as being hydrophobic. Therefore, it is only fitting to say that man-made fibre is becoming a critical pillar of India’s textile industry. However, this is not to say that man-made fibre is here to replace natural fibre, as many often note that the future of textile stands in the blend of nature with manmade, providing the best of both worlds. Man-made fibres have become the fuel of India’s textile industry, enabling Indian weavers and spinners to stay competitive in a price-conscious market. The government has put crucial measures in place for the sector to thrive, including the Production Linked Incentive (PLI) scheme for Man-made Textiles, the National Technical Textile Mission, the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. However, there are various issues plaguing the value chain. Viscose fibre, despite being integral to India’s manmade fibre sector, is limited in supply in the country. India also holds one of the largest installed production bases in the world in the weaving industry, but using old technology combined with a limited supply of raw materials, the sector’s true potential is hindered due to low output and quality. These hindrances and obstacles in the value chain often spiral to impact the entire value chain of the manmade textile industry. This means it is not just the productivity which is at stake but also the livelihood of countless Indian weavers and spinners who are the backbone of the sector. Therefore, to ensure that the textile value chain is sustainable and safeguarded, the first step is to ensure the availability of quality raw materials at competitive prices. To enable this, we need healthy and fair competition in the market and a level playing field. This level playing field will exist only when the supply and demand mechanisms for the raw materials stand at equilibrium. Years of protectionism have skewed the control over raw materials, with some getting an undue advantage. Recent reports indicate that a reintroduction of duties on viscose is being contemplated because of pressure from the domestic manufacturer. The proposed duty is likely to increase the import price of the fibre by up to INR 40. High raw material costs would lead to increased imports of yarn and fabric, leading to a loss of jobs in the country. In addition, our exports would suffer. Man-made fibres: future of textile in India and Globally With cheaper costing and multiple uses, man-made fibres are a good addition to the textile industry. However, as mentioned above, they are not here to replace nature fibres such as cotton and silk but to complement them with newer alternatives such as blended fibres. Hence, it is high time we bring our muchneeded attention to man-made fibres to create an ecosystem that safeguards the value chain and the livelihood of millions of weavers and spinners dependent on the fibre’s production. This is the right time for India to benefit from the world’s shift away from China by providing a stable policy and competitive raw materials available to the value chain. Inconsistent policy decisions on raw materials will only ruin the chance of participation for the small-scale spinning and weaving industries in man-made fibre fabric production.
Source: Times of India
For India to top the world in textile production, Tiruppur will be the backbone as 50 % of the nation’s exports are from the knitwear industry here, said Union Minister of Tourism G. Kishan Reddy at the NIFT-TEA College of Knitwear Fashion in Tiruppur on Monday. Addressing the students in a session on AatmaNirbhar Bharat, he said: “India’s textile industry is witnessing positive development with a separate ministry for the sector. PM Vishwakarma Kaushal Samman Yojana 2023 will ensure employment for rural youth across the country and focus on their welfare.” “Over the next 20 years, our country will be the world’s greatest economic strength,” he said. “Prime Minister Narendra Modi hopes to increase India’s textile export worldwide. Tiruppur’s contribution is prominent to achieve this. Foreign business investments are inspired and the textile industry is moving forward today. Around 50 % of the country’s export is taking place through the Tirupur knitwear industry. India will top the world in textile production, for which, the knitwear city of Tiruppur will serve as the backbone,” the Minister said.
Source: The Hindu
Indian textile giant Welspun India Limited’s advanced textile facility has started at Chandanvelly in Ranga Reddy district of Telangana. The company has developed state-of-the-art technical textile plant in Telangana. Almost Rs. 500 crore has been invested in this project and it is Welspun Group’s second investment in the vicinity after setting up a flooring unit at the cost of Rs. 1500 crore two years ago. Minister for IT and Industries K Tarakarama Rao recently inaugurated the new unit. On this occasion, BK Goenka, Chairman, The Welspun Group said, “We are here because of the vision of K Tarakarama. I am amazed at the growth of Chandanvelly Industrial park and I firmly believe that Chandanvelly will become India’s industrial paradise in the coming years.” The group will further invest more in the state and the proposed investment will be in addition to Rs. 2,000 crore spent to establish the Welspun Group’s textile park and flooring unit at Chandanvelly in Rangareddy district. Dipali Goenka, CEO and JMD, Welspun India was also present on this occasion. Welspun Group is into home textiles, flooring solutions and advanced textiles.
Source: Apparel resources
After 75 years of independence, India is entering its golden era—leapfrogging the United Kingdom to become the world’s fifth-largest economy and on track to have a GDP of more than $15 trillion to become the third-largest economy by 2047. The country has been a shining light in an otherwise gloomy global outlook and is poised to be the decades to come. So far, India has followed a unique growth trajectory. Over the past two decades, the services sector grew rapidly without a manufacturing boom, unlike other countries where manufacturing growth precedes services. The services sector’s contribution to GDP has risen from 45 percent to 55 percent while manufacturing has remained largely stagnant at 15 percent in 2017 and 17 percent in 2022. Going forward, growth in manufacturing is a must if India wants to reach the projected target of $20 trillion by 2047. With the right measures and rigorous execution, India’s manufacturing sector can reach $4.5 trillion, taking its GDP share to 22 percent (against a base projection of $2.5 trillion with a 17 percent share in GDP), which is both a necessity and an opportunity for India to shine.
Three areas highlight the fundamental necessity of growth in manufacturing:
Population: a boon and a bane.India has roughly 800 million working-age people and will add about 200 million more over the next three decades. Manufacturing employs 50 million to 60 million people today. Even with a conservative projection of $3.5 trillion output by 2047, manufacturing has the potential to create 85 million more jobs. Achieving $4.5 trillion through higher manufacturing growth could create 90 million jobs—a big boost for income and a multiplier for economic growth.
Trade deficit: a gulfto bridge. At about 2 percent, India’s trade deficit indicates a high dependence on imports, which will put pressure on budgetary expenditures, currency, export competitiveness, and domestic investments.
Resilience: self-reliance for self-assertion.India needs to be self-reliant in its pursuit of becoming a global superpower in the geopolitically-sensitive world order. A thriving, self-reliant domestic manufacturing sector will give India a platform to reach its goals. The government recognizes this necessity, and significant efforts have been made for a wide- ranging push on manufacturing. Broad government reforms have started showing momentum, from the Goods and Services Tax (GST) to the ease of doing business and the Production Linked Incentive (PLI) schemes. Furthermore, the global value chain reconfiguration post-pandemic has added manufacturing superpower.
Six areas will be essential for India to realize its full potential in manufacturing:
Focus on enhancing competitiveness in sectors of strength.India has strong capabilities in pharmaceuticals, chemicals, textiles and apparel, and automotive. However, gaps remain in terms of mega-scale facilities that can anchor large-scale exports, the reliability of supporting infrastructure and ancillary services (reflected in recurring instances of accidents in manufacturing), trade integration challenges, and productivity. Both public and private interventions will be needed to close these gaps.
Establish a stronghold in next-generation sectors.Opportunities are emerging in renewables, aerospace, and hi-tech semiconductors as the world transitions to a green and connected future. Building a solid foundation in these sectors will require focusing on R&D, investments in technology transfers, global tie-ups, and incentivizing private investments along with collaboration across academia, industry, and the government.
Drive a smart manufacturing stack similar to India Stack.India’s technology stack is a leading example of digital disruption at scale and showcases the country’s capabilities for innovative solutions. A similar innovative leap in manufacturing, oriented toward the next generation of smart industrial clusters, connected factories and high-productivity assets, end-to-end value chain transparency, and tech-enable real-time interventions can be big differentiators. This is possible with the ongoing 5G rollout.
Enhance capabilities at scale. Across industries, executives highlight the lack of an industry- ready qualified workforce as a major pain point. This is driven by a mixed set of issues, including a curriculum for institutions, the lack of focus on skill development, and the work environment as well as the emerging outlook of a new-age workforce. Skill building will be crucial, and it needs to be spearheaded by industry leaders—similar to how IT skill development was led by private players NIIT and Aptech in the early days.
Accelerate the transition to future-ready infrastructure.India has inefficiencies in terms of the large amount of goods transitioning within an industrial value chain as well as the high cost and lengthy time for the transition. India is solving both of these challenges with a variety of interventions. The goal is to reduce logistics costs to 8 percent of GDP by 2030 along with a $1.2 billion investment in industry-focused corridors. Timebound execution of these projects and expansion of these initiatives will be vital. Strategic investmentin ESG. With a global pool of ESG-aligned capital at more than $120 trillion (assets under management of the signatories of the UN Principles for Responsible Investment), ESG has tremendous potential to become a differentiator for India. From adopting green bonds and achieving water neutrality, from expanding the realm of corporate social responsibility to creating a safe and healthy workplace, from responsible leadership to protecting shareholder interests—India Inc. can embed sustainability as a core value proposition to fuel growth in manufacturing. Beyond these themes, a few more factors will be essential parts of India’s success story, including navigating the emerging geopolitical risks, handling the investment needs amid a heavier fiscal burden, and managing the risks of climate-change driven calamities. In a nutshell, India has a lot going in its favor to become the next global manufacturing powerhouse. With an aggressive reform agenda, aligned public and private actions, a strong execution and steady navigation of the geopolitical risks, the next 25 years can truly be India’s golden age of manufacturing.
Source: Economic times
Union commerce minister Piyush Goyal reportedly said on Saturday that Korean auto giants Hyundai and Kia have cost India billions of dollars in trade deficit with Korea and other nations. The minister attributed this to the free-trade agreement (FTA) with South Korea, which allowed them to import “indiscriminately.” Even without a specific focus on the auto giants’ imports into India, it can be argued that the country hasn’t gained much from its Comprehensive Economic Partnership Agreement (CEPA) with South Korea. Over the past six years, India’s trade deficit with that country has averaged $10 billion—doubling from a deficit of roughly $5 billion in FY10 (the CEPA became effective on January 1, 2010). So, while the merit of singling out the two Korean auto majors can be debated, India’s frustrations with the CEPA can’t. There is no denying that some of the import growth can be attributed to essential goods, which are not produced or assembled in India due to insufficient/absent capacity. But there has been a spurt in non-essential imports also. Auto majors, even Indian ones, tend to stick to their network of suppliers, and while there could have been substitution in India, this hasn’t happened. Indeed, in 2016, the matters have changed in the interim and a Pocso can’t claim it is apprehensive of investing in much greater value addition here India Inc’s distress from ballooning imports is visible in the fact that, between 2012 and 2022, India applied for more than 70 trade remedial measures against South Korea, including bilateral safeguard measures under the CEPA. The FTA has also been misused to channel trade from other countries via Korea, despite its origin rules. This has been somewhat remedied with India’s Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, under which importers are vintage trade deals need review, and the government must move fast on these But, even as India walks the renegotiation tightrope, it must have clarity on many aspects. First, it needs to comprehensively articulate what it wants from the trade deals, and what its non-negotiables are—services exports, which India could have leveraged to offset any deficit in competitiveness of its merchandise exports, remain a sticky point in the FTA with Asean, as also in India’s FTA talks with the UK. What was done with diplomatic interests in mind, must be corrected keeping economic interests at the centre. Also, trade pragmatism calls for letting industry decide from whom to procure while taking into account every little concern and opportunity it flags with respect to FTA negotiations. To that end, the government has done well to have extensive industry and other stakeholder consultations before it sits at the FTA table—a marked change from the vintage FTAs.
Source: Financial Express
Private lender RBL Bank on Monday announced it has entered into an agreement with Export-Import Bank of India (India Exim Bank) under Trade Assistance Programme (TAP)to support cross-border trade transactions. Under trade assistance programme (TAP) for cross-border transactions, Export-Import Bank of India (India Exim Bank) aims to facilitate India’s exports globally by providing credit enhancement to trade instruments. "With Exim Bank’s support, RBL Bank will be able to gain footholds in nations, where trade lines are constrained," said RBL Bank in its filing. Through the programme, India Exim Bank will extend trade lines into the participating overseas banks/institutions in the emerging markets. The credit enhancements to trade instruments provided under TAP, will help mobilise trade finance and would increase support to Indian exporters. The agreement between the two parties was announced on 27 February, 2023. “We are happy to partner with India Exim Bank. We believe that our customer-centric approach backed by strong technological offering will be amplified aptly through India Exim Bank’s global network. The financing structure of this arrangement provides us with an opportunity to offer trade services in untapped markets while lowering the risks associated with global trade," said R Subramaniakumar, MD & CEO, RBL Bank. "We are pleased to partner with RBL Bank and on-board them on India Exim Bank’s Trade Assistance Programme, to support cross border trade transactions involving geographies where trade lines are constrained or where the potential has not been harnessed. Under the programme, India Exim Bank has already supported multiple trade transactions covering a wide range of sectors including agriculture, automotive and automotive parts, capital and engineering goods, food, iron & steel and textiles involving exports to geographies in Africa, Asia and Latin America," said Harsha B Bangari, Managing Director, India Exim Bank.
Source: Live mint
One of the most talked about issues in the global apparel industry lately has been the massive fluctuations in cotton fibre prices that pushed apparel factories to look for alternatives of cotton that are good on performance as well as sustainable. Though it can safely be stated that the use of cotton can never be neglected, at the same time, wood-based cellulosic fibres have to be given due weightage which are showing up strongly and promisingly, especially at a time when no predictions rightly work in the cotton industry. Lenzing Group – a market leader in wood-based fibre industry – sensed the opportunity of making the industry more sustainable and innovative way before others could even think of it! Team Apparel Resources (AR) recently had an interaction with Jayaraman S, Senior Commercial Director, Asia-Pacific and South Asia; and Avinash Mane, Commercial Director, South Asia, Lenzing Group to understand how disruptions within the textile and fashion supply chain are paving way for increased adoption of fabrics and raw material made up of Lenzing’s wood-based cellulosic fibres in India as well as in the global market.
Wood-based fibre market is expected to grow as uncertainty in the cotton market is prevalent
Recent turbulence in cotton prices has impacted the apparel and textile industry substantially. The cotton prices skyrocketed by almost 110 per cent between 2020 and 2021! From Rs.45,000 –Rs.50,000 per candy in Q1 ’20 to Rs. 110,000 per bale all through the remaining 2020 and mid-2021, cotton prices made a dent in companies’ profitability that too at a time when factories were struggling to get orders from buyers. The cotton prices dropped to Rs. 75,000-80,000 per candy by 2021 end but it’s still not seeing a constant price fix! The predictions have failed in the cotton industry and spinners cannot have their cotton sourced in advance now at a consistent price. This is hurting the stakeholders in the entire textile supply chain. Apart from this, it’s a fact that cotton is a thirsty crop that requires a huge amount of water and takes massive portion of fertile land to grow; however, as the population is increasing worldwide, it won’t be easier for the cotton industry to increase its market share as the land could be otherwise used for growing food grains which are going to be the priority in the coming time. As disruptions are already hitting the industry, the market of wood-based natural cellulosic fibres is expected to grow at a much better pace, particularly because of the comfort factor these fibres offer. “The growth opportunities are more for wood-based cellulosic fibres and this market will grow between CAGR of 4-6 per cent in coming years. We, at Lenzing, are manufacturing these fibres in a sustainable way because we understand natural resources can’t be (and it shouldn’t be) exploited. The growth rate is in single-digit but it will pick pace once all the industry players in natural fibres crack the method of producing these fibres more sustainably,” commented Avinash.
Sustainability and product development should go hand-in-hand
As a market leader, Lenzing proudly says all its innovations are sustainability-driven and these innovations don’t compromise when it comes to end-product application, aesthetics or characteristics. According to the company, sustainability has two angles:(1) the development of products in a sustainable way in the first place; (2) focus on circularity later on so that the used product can be put back into the cycle. Lenzing’s REFIBRA technology involves upcycling cotton scraps from garment production and the final fabric after recycling is said to be not compromising on any fabric property unlike recycled polyester and cotton that have some limitations. The mechanically recycled cotton will have its colour and the length will be short as required. The method involves transforming cotton scraps into cotton pulp. Up to one-third proportion of this is added to wood pulp, and the combined raw material is transformed to produce new virgin TENCEL™ Lyocell fibres to make fabrics and garments. “Next big innovation which Lenzing has come up with is carbon-neutral TENCEL™ fibres. With this innovation, the industry can shift its product range that are made of current TENCEL™ fibres to carbon-zero TENCEL™ fibres. As an innovative fibre company, we understand that the amount of carbon footprint is getting created by different raw materials and by processes. So that’s where the innovation is,” commented Avinash. Lenzing is following new-age sustainable approach not just for dope-dyed fibre but also for the new innovation of modal indigo too where it is putting actual indigo into the fibre at the manufacturing stage. “The conventional process takes large amount of dyes, chemicals and water! All these requirements are completely eliminated and you get the same denim effect at the end product,” said Avinash. The innovation is in line with Lenzing’s strategy as its sights are set on net-zero emissions by 2050, so the company prioritises the continuous reduction of carbon emissions through efficient production, new technologies and renewable energy sources to meet targets set through the Science Based Targets initiative.
Collaboration with the industry is a key strategy for growth
Lenzing believes in ‘pull’ strategy, rather than going for a ‘push’ strategy and this is why it keeps collaborating with retailers, brands and front-end people in the industry who are responsible for product development and fibre/fabric selection, rather than focusing just on the back-end spinners. Having offices in all key markets such as the USA, Japan, UK, Germany, China and South Korea among many others helps Lenzing work closely with global fashion brands and retailers which then helps Lenzing innovate and develop fibres which are in demand – not just today but in future. “We are collaborating with both global and Indian fashion brands such as Levi’s and Jockey to name a few. We keep giving them feeders as to what kind of innovations can be done in fibres,” averred Avinash, adding, “PVH, Bestseller, H&M, M&S, Primark, Otto and all other major brands which are now moving towards more sustainable products – we interact with this entire cross-section of retail brands to help them in their endeavours of making the industry more innovative as well as sustainable.” In India, Lenzing has worked with House of Anita Dongre and Rajesh Pratap Singh to develop their collections made up of TENCEL™ and LENZING™ECOVERO™ fibres. “LENZING™ ECOVERO™ fibre was launched in India in collaboration with renowned designers Abraham & Thakore and later with Ritu Kumar, whereas Carbon Zero TENCEL™ fibre collection came into the market with a collection developed by Rajesh Pratap for Satya Paul,” informed Avinash. Not just designers, Lenzing has also worked with industry leaders in retail such as Jockey, Arvind, Tata Trent and Indian Terrain etc.
‘The Lenzing Conclave’ aims to educate the regional customers to create better quality products using alternatives of cotton fibre
India is a country of over approximately 1.4 billion people. The consumers in Tier-1 cities are aware of the products they purchase and, now gradually, consumers in Tier-2 and Tier-3 cities are also trying to pace up with the trends by accessing information through digital channels that make them aware of better products in the market that are made of innovative and sustainable fabrics. This is driving the vision of textile and apparel firms too as they are bringing more innovations in their products. ‘The Lenzing Conclave’ is an India-first initiative by Lenzing group which is aimed at empowering the textile industry with best global practices in sustainable textiles. Till now, the conclave has been held in Salem, Solapur, Delhi-NCR, Surat, Rajapalayam, Tirupur, Karur and Mumbai. Explaining the motive behind these conclaves, Jayaraman said, “We are striving to solve the crucial problem with cotton availability and costs. Blends of cotton with Lenzing fibres are turning out to be a good alternate option for the industry with product benefits being passed throughout the supply chain to the end consumers. With our future-ready sustainable fibre offerings, we see the opportunity to support the supply chain with superior products offered at a great value for them and their consumers. The current success of our TENCEL™ and LENZING™ECOVERO™ fibres is proof of this vision.” With these conclaves, Lenzing is imparting required knowledge in the domestic hubs that make products ranging from apparel, home textiles to kitchen linen, and encouraging them to create innovative products using TENCEL™ or LENZING™ECOVERO™ fibres that can be pitched to retailers and brands not only in India but also in the global market. “Delhi, particularly, is a hub where we have representatives’ offices of global fashion retailers and brands. Not just brands, the NCR region does have a strong presence of buying offices as well as leading Indian ethnicwear brands. All these stakeholders are invited at a common platform through ‘The Lenzing Conclave’ where we can share insights on recent trends and our offerings on the alternative options of cotton such as TENCEL™ and LENZING™ECOVERO™ fibres,” added Avinash.
Lenzing’s strategy to push itself to be future-ready
Companies in the industry are focusing on sustainable growth and are going for systematic expansions. Lenzing, being the market leader, remains the frontrunner with its on-point strategic expansions. Recently, Lenzing has started the world’s largest TENCEL™ fibres plant in Thailand that has a capacity of producing 100,000 tonnes of fibres per year. For Lenzing, the project also represents an important step towards strengthening its leadership position in the specialty fibre market and into a carbon-free future. “We have also started producing half-a-million tonnes of pulp in 2022 which gives us backward integration capacity to the sites. If I go by numbers, we almost spend 10 per cent of our EBITDA every year on our expansion and R&D initiatives. The key focus behind this investment remains on one simple approach – producing fibres without spoiling the environment,” commented Jayaraman. In terms of market share, South Asia has taken over all the markets to become the top destination for Lenzing during the last five years. “We have been growing in South Asia ever since we started operating from Coimbatore in 2006. We have offices in major hubs with our own labs, we are entirely self-sufficient in our entire branding process which is something up and running for the last five years,” said Jayaraman. Jayaraman further mentioned that many global and regional retailers have a clear target for achieving zero carbon emissions – that’s Lenzing’s aim as well – and also going for sustainable fibre, therefore Lenzing will continue to work to support them in achieving their targets.
Unanimous policy support is required to tap growth in natural fibres
The Indian Government has recently launched an array of schemes and policies that are mainly brought to support the cotton industry and to encourage companies to diversify into MMF-based apparel products. However, one area that has always held the ground without any significant support from the policymakers is natural fibres such as viscose. In fact, viscose staple fibre attracted anti-dumping duty during the last twelve years which was removed only last year (in 2021). However, linen – another important material for making garments – was put under anti-dumping duty regime recently, making it difficult for the industry to purchase raw material at globally competitive price points. “We fully agree to the approach of having a unanimous policy which supports the industry to an extent that bridges the voids which are still there,” concluded Avinash, adding, “Good thing is that the policymakers are quite dynamic and gradually schemes are coming out that cover the entire spectrum of textile value chain.”
Source: Apparel Resources
India is a global strategic partner of the United States, the Biden administration said Monday as Secretary of State Tony Blinken left for New Delhi to attend a host of key conferences including the G-20 foreign ministers' meeting. Blinken will also attend a Quad ministerial meeting and hold a bilateral talk with External Affairs Minister S Jaishankar. "India is a global strategic partner of ours. We have a wide, broad, deep relationship with India. There will be a lot on the agenda in the bilateral relationship and in the multilateral engagements he takes part in on the margins of the G20," Ned Price, State Department Spokesperson, told reporters at his daily news conference. "We share a vision with India of a free and open Indo-Pacific, and India is a key partner of ours bilaterally, in the context of the Quad as well, other international groupings, even as we've attempted to stitch together some of the partnerships in which India has been a key player,” he said. "We've spoken quite a bit recently of I2U2, a new partnership that involves India, it involves the UAE, it involves the United States as well. So, there are a number of elements on the agenda, and you'll have an opportunity to hear from the Secretary as he travels there," Price said. After his visit to Kazakhstan and Uzbekistan, Blinken is scheduled to arrive in New Delhi for a three-day India trip. During his bilateral meetings, both Russia and China are expected to figure in talks. "You've heard very firmly from Prime Minister Modi the belief on the part of the Indian government that this is not an era of war. There are countries around the world, notably Russia, that are challenging the rules-based order, the principles of the UN Charter, the principles of international law, the principles of the Universal Declaration of Human Rights. We'll continue to discuss these issues with our Indian partners. I have no doubt that they'll be on the agenda for and around the G20,” Price said. India and the United States, Price said, share a number of important interests, and a number of important values. "But principally we share a vision of a free and open Indo-Pacific region. There are countries in the region, namely the PRC (People's Republic of China), that have posed a consistent and in some ways even a systemic challenge to the vision that we share with India of a free and open Indo-Pacific. Without going into specifics, those issues will certainly be on the agenda at the G20 but also in the bilateral context," he said
Source: Economic times
Ahead of the Global Investors Summit 2023, which will be held in Visakhapatnam on March 3–4, the Andhra Pradesh government has offered a one-stop digital platform for investors. “We will provide a one-stop digital platform for all domestic and foreign investments through our Andhra Pradesh Single Desk Portal. The business-specific approvals for setting up businesses are granted within a maximum timeframe of 21 days,” Gudivada Amarnath, Minister for Industries, Infrastructure, Investment & Commerce, Information Technology, Handlooms & Textiles, Andhra Pradesh, said. Industrial policy The government would shortly introduce a forward-looking Industrial Policy in a new avatar with an emphasis on driving economic growth across key focus sectors, promoting port-led industrial development, end-to-end investor facilitation, start-up culture, and inclusive and balanced regional development. According to Buggana Rajendranath Reddy, Minister of Finance and Planning, the state is spending a “significant” amount of its budget on developing air connectivity in the state, with a greenfield international airport coming up at Bhogapuram near Visakhapatnam at a cost of ₹2,500 crore. To woo investors to the summit, the State government had organised roadshows in the main cities across the country, including New Delhi, Mumbai, Bengaluru, Chennai, and Hyderabad. According to Buggana Rajendranath, AP has 888 km of national waterway within the State. “We intend to develop inland waterways, which will reduce the cost of logistics for moving cargo within and outside the State. 27 locations have been identified as prioritized terminals. The waterways will have the potential to handle 10 MT by 2029, which will reduce the cost of logistics and push exports for the state,’‘ he said. Andhra Pradesh is India’s gateway to the southeast with its 974 km long coastline, the second longest in the country, six existing ports, and four upcoming ports. The State has also emerged as the fastest-growing state in India, as per the number released so far, with double-digit growth of 11.43 per cent in 2021-22, he said. The global investors’ summit assumes significance as the State government is projecting the State as one of the major investment destinations in the country. As per official data, Andhra Pradesh has attracted Rs 47,490 crore in investments in the last three years in 28,343 industries, including those that have already started operations. Besides, ₹1,51,372 crore investment is underway as 61 industries are in the process of setting up their facilities in the State.
Source: The Hindu business line
INTERNATIONAL
Kelheim Fibres, manufacturer of viscose speciality fibres, has joined Recycling Atelier Augsburg. Recycling Atelier Augsburg is a unique centre for research and development in the field of textile recycling. It is located at the Institut für Textiltechnik Augsburg an affiliated institute of Augsburg University of Applied Sciences. The two institutions founded the Recycling Atelier in June 2022 together with twelve partners from the German textile industry. “As a model factory, the Recycling Atelier Augsburg combines the most important processes of textile recycling and offers holistic and comprehensive research along the value chain,” explains Georg Stegschuster, head of the Recycling Atelier Augsburg. The scientists research on all process steps of textile recycling: from material analysis to sorting, preparation and textile processing to sustainable product design. Comprehensive data collection and the use of artificial intelligence as well as innovative materials play a central role. Kelheim Fibres is a producer of high-quality viscose fibres, which consist of cellulose, the main component of the renewable raw material wood, and are used worldwide for products in areas such as hygiene, textiles, and technical applications. “In New Business Development as well as Fibre and Application Development, we follow the Open Innovation concept – the cooperation with the Recycling Atelier offers us an ideal platform for this. Here we work with partners to advance sustainability and performance,” explains Maik Thiel, project manager at Kelheim Fibres. Recycled cotton fibres are often very short or of uneven length, which makes further processing of 100 % recycled material a challenge. This is where the speciality fibres from Kelheim Fibres come into play, whose addition should enable the production of high-quality new products, such as nonwovens. In the future, the fibres provided by Kelheim Fibres will also be made from recycled pulp. Closing the loop further. In the Recycling Atelier, the focus is on the triad of technical and ecological sense as well as economic benefit. In this way, the partners of the Recycling Atelier are standing up against fast fashion, outsourced corporate responsibility and a general decline in raw material quality, which often fuels downcycling – the low-quality reuse – of materials.
Source: Textile world
A joint concern of Epic Group and Envoy Legacy of Bangladesh, Green Textile Limited Unit 4 created history by becoming the world’s highest platinum-rated green factory after it scored 104 out of 110, the highest globally. This is as per media reports which claimed Bangladesh today has both the highest rated and the highest number of green garment factories in the world even as Green Textile Limited Unit 4 at Nijhury Baraid in Mymensingh’s Bhaluka overtook PT Ungaran Sari Garments Pringapus 6 and 7 of Indonesia — The Indonesian garment factory was the highest platinum rated green garment factory in the world since May 2018 with a score of 101, according to data from the United States Green Building Council (USGBC) — to become the highest ranked platinum rated green factory globally. It may be mentioned here USGBC is the certifying body for the global Leadership in Energy and Environmental Design (LEED) factories for green initiatives even as Platinum certification is the highest category in the ranking system, followed by Gold as the second highest and Silver third. At the same time, there is also a fourth category for industrial units that just meet the minimum requirements.
Source: The outlook.office.com
The amount of used textiles exported from the European Union (EU) has tripled over the past two decades, and the amounts may increase further, according to the EEA briefing ‘EU exports of used textiles in Europe’s circular economy’. The briefing is based on a more detailed analysis by the EEA's European Topic Centre of Circular Economy and Resource Use. Europe faces major challenges in the management of used textiles, which are to be collected separately in the EU by 2025. As reuse and recycling capacities in Europe are limited, a large share of discarded and donated clothing and other textile products are exported to Africa and Asia. Common public perceptions that used clothing donations are always of use in those regions do not reflect the reality. Once exported, the fate of used textiles is often uncertain, according to the EEA briefing which looks at the patterns of and trends in EU exports of used textiles from 2000 to 2019. According to analysed data from the United Nations, EU exports of textiles have increased and shifted from mainly African destinations to both Africa and Asia. The briefing also shows how some challenges related to these exports are being addressed in current and proposed EU policies. In the EU strategy on sustainable and circular textiles, published in March 2022, the need for addressing the challenges from exports is specifically mentioned.
Key findings: The amount of used textiles exported from the EU has tripled over the past two decades from slightly over 550,000 tonnes in 2000 to almost 1.7 million tonnes in 2019. The amount of used textiles exported in 2019 was on average 3.8 kilogrammes per person, or 25% of the approximately 15 kg of textiles consumed each year in the EU. In 2019, 46% of used textiles exported from the EU ended up in Africa. The textiles primarily go to local reuse as there is a demand for cheap, used clothes from Europe. What is not fit for reuse mostly ends up in open landfills and informal waste streams. In 2019, 41% of used textiles exported from the EU ended up in Asia. Most of these textiles are directed to dedicated economic zones where they are sorted and processed. The used textiles are then mostly downcycled into industrial rags or filling, or re-exported for recycling in other Asian countries or for reuse in Africa. Textiles that cannot be recycled or re-exported likely end up in landfills.
Bio-based fibre products: do they offer a ‘greener’ alternative? Bio-based fibres that are used in clothing and other textile products are often regarded as more sustainable alternatives, but a new technical report by the EEA’s European Topic Centre of Circular Economy and Resource Use demonstrates that this picture requires some caution. While bio-based fibres offer potential to steer away from synthetic textiles made from plastics (mainly derived from oil and gas), they cause other environmental pressures, including water and land use related to agricultural activities, deforestation and fibre processing. Moreover, the report highlights that their biobased origin does not free them from environmental concerns related to microfibres, waste and recyclability.
Source: The eea.europa.eu
As Pakistan is struggling with its worst economic crisis in decades, the country's industry is bracing itself for cuts in production and workforce, especially in the textile sector after it witnessed at least 14.8% decline in textile exports, according to the data released by the Pakistan Bureau of Statistics. Nasir Mansoor, Secretary General of the National Trade Union Federation Pakistan (NTUF) said that as many as one million informal workers, mostly from the textile sector, will lose their jobs. In January 2023, Pakistan's export stood at USD 1.3 billion, which was less as compared to January 2021's USD 1.5 million. On a month-over-month (MoM) basis, the country reported a decline of 2.5%. "The 2022 floods washed away at least 45% of our cotton crop, leaving textile mills without an essential raw material. The other solution is to import raw material, but delays in LCs [letters of credit] opening have brought all operations to a halt," Mansoor explained, reported The News International. Earlier this year, during a joint press conference held by the textile associations in January 2023, representatives of the associations revealed that around 7 million workers in the textile sector and textile-related industries had been laid off since last summer. Officials from the industry also blamed the government regulations, including delays in LCs opening for the serious situation. Meanwhile, the Pakistan Association of Automotive Parts and Accessories Manufacturers also shared that around 25,000-30,000 workers in the auto sector had lost their jobs due to an unabated drop in annual sales, as per ANI reports. A management-level official from an investment company in Pakistan said that the current macroeconomic conditions have affected sectors in a different manner. "Sectors that are more likely to get affected by the current economic conditions in Pakistan are those which depend heavily on import; import of raw materials or other products, like autos. Rising interest rates have allowed the banking sector to perform really well. But since this policy leads to demand compression, more mainstream companies are expected to default. And this assumption can be backed by the fact that almost all banks are taking more provisions for loan losses," the management-level official said.
Source: live mint
ECOSYSTEX (European Community of Practice for a Sustainable Textile Ecosystem) is a joint sustainability initiative of the European Commission’s Research Executive Agency (REA), the European Health and Digital Executive Agency (HaDEA) and the Circular-Biobased Europe Joint Undertaking, and is facilitated by the Textile ETP. It comprises 17 R&I EU-funded member projects focusing on textile sustainability, with a mission to accelerate collaboration in the textile sustainability and circularity field.
The community will focus its work on: Interproject collaboration to share best practices and exchange new knowledge Engagement with policymakers to provide support in designing and implementing effective policies and programmes Dissemination to ensure the interested, public expert community can be informed about the latest developments and results of EU research and innovation projects addressing textile sustainabilityand circularity. The important feature of ECOSYSTEX is the collaboration between academic and applied researchers, technology developers, textile industry experts and other stakeholders from across Europe. “An enormous body of new knowledge and an arsenal of innovative technological solutions are resulting from collaborative research projects and programmes across Europe, but information about their results is fragmented which inhibits take-up and scale-up,” the project leaders said. “It also means that policy makers and other stakeholders may miss out on latest data and insights that could make their legislative or implementation initiatives more relevant, specific and impactful. ECOSYSTEX aims to become the central European knowledge hub and go-to resource for latest research work and technology state-of-the-art information on all matters related to textile sustainability and circularity.” The initial idea for setting up the network came from the CISUTAC project, inspired by a similar initiative in the plastic industry: the Plastic Circularity Multiplier. After initial meetings in the autumn of 2022, ECOSYSTEX started to take shape, and 17 projects joined as founding members of the community. Membership of ECOSYSTEX is open to running European-funded projects focusing on textile sustainability and circularity, or concluded projects meeting the same criteria. In recent years a growing number of research and innovation projects have been funded under the EU’s Research Framework Programmes in the field of textile sustainability and circularity, as a result of the European Union’s focus on the sustainable transition of the EU economy and society as part of the EU Green Deal (announced in 2019). This was followed by the EU Strategy for Sustainable and Circular Textiles (published in March 2022), presenting a vision and related European policy objectives for a green and digital transition of the European textile ecosystem. The strategy focuses on key textile sustainability aspects, such as ecodesign, waste and pollution prevention, safe and bio-based materials, circular material flows and responsible supply chains and new business models. Therefore, the ECOSYSTEX community was created to ensure that these EU-funded projects will be strongly complementary and benefit from synergies to maximise projects’ impact and optimise resources.
Source: The just-style.com
On the Swedish coast of the Baltic Sea, in the city of Sundsvall – home to the country's pulp and paper industry – a team of scientists, chemists, entrepreneurs and textile manufacturers are celebrating a milestone birthday, under a banner which features the slogan "#SolutionsAreSexy". The Swedish pulp producer Renewcell has just opened the world's first commercial-scale, textile-to-textile chemical recycling pulp mill, after spending 10 years developing the technology. While mechanical textiles-to-textiles recycling, which involves the manual shredding of clothes and pulling them apart into their fibres, has existed for centuries, Renewcell is the first commercial mill to use chemical recycling, allowing it to increase quality and scale production. With ambitions to recycle the equivalent of more than 1.4 billion T-shirts every year by 2030, the new plant marks the beginning of a significant shift in the fashion industry's ability to recycle used clothing at scale. "The linear model of fashion consumption is not sustainable," says Renewcell chief executive Patrik Lundström. "We can't deplete Earth's natural resources by pumping oil to make polyester, cut down trees to make viscose or grow cotton, and then use these fibres just once in a linear value chain ending in oceans, landfills or incinerators. We need to make fashion circular." This means limiting fashion waste and pollution while also keeping garments in use and reuse for as long as possible by developing collection schemes or technologies to turn textiles into new raw materials. Each year, more than 100 billion items of clothing are produced globally, according to some estimates, with 65% of these ending up in landfill within 12 months. Landfill sites release equal parts carbon dioxide and methane – the latter greenhouse gas being 28 times more potent than the former over a 100-year period. The fashion industry is estimated to be responsible for 8-10% of global carbon emissions, according to the UN. Just 1% of recycled clothes are turned back into new garments. While charity shops, textiles banks and retailer "take-back" schemes help to keep those donated clothes in wearable condition in circulation, the capabilities of recycling clothes at end-of-life are currently limited. Many high street stores with take-back schemes, including Levi Strauss and H&M, operate a three-pronged system: resell (for example, to charity shops), re-use (convert into other products, such as cleaning cloths or mops) or recycle (into carpet underlay, insulation material or mattress filling – clothing is not listed as an option). Much of the technical difficulty in recycling worn-out clothes back into new clothing comes down to their composition. The majority of clothes in our wardrobes are made from a blend of textiles, with polyester the most widely produced fibre, accounting for a 54% share of total global fibre production, according to the global non-profit Textile Exchange. Cotton is second, with a market share of approximately 22%. The reason for polyester's prevalence is the low cost of fossil-based synthetic fibres, making them a popular choice for fast fashion brands, which prioritise price above all else – polyester costs half as much per kg as cotton. While the plastics industry has been able to break down pure polyester (PET) for decades, the blended nature of textiles has made it challenging to recycle one fibre, without degrading the other. (Read more about why clothes are so hard to recycle.) By using 100% textile waste – mainly old T-shirts and jeans – as its feedstock, the Renewcell mill makes a biodegradable cellulose pulp they call Circulose. The textiles are first shredded and have buttons, zips and colouring removed. They then undergo both mechanical and chemical processing that helps to gently separate the tightly tangled cotton fibres from each other. What remains is pure cellulose. After drying, the pulp sheet feels like thick paper. This can then be dissolved by viscose manufacturers and spun into new viscose fabric. Renewcell says it powers its process using 100% renewable energy, generated using hydropower from the nearby Indalsälven river.
You might also like: The vegan leather made from India's waste flowers Why you need a 'wellbeing wardrobe' How longer weekends help the planet As the most common manmade cellulosic fibre (MMCF), viscose is popular because of its lightweight, silk-like quality. MMCFs have a market share of about 6% of the total fibre production. Dissolving pulp cellulose is used by the textiles industry to make around 7.2 million tonnes of cellulosic fabrics each year, according to Textile Exchange. But the majority comes from wood pulp, with more than 200 million trees logged every year, according to Canopy, a US non-profit whose mission is to protect forests from being cut down to make packaging and textiles, like viscose and rayon. Not only does Renewcell's technology help keep forests intact, it also produces a higher pulp yield. "A tree is made up of different parts, including cellulose, but about 60% of it is non-cellulose content that you can't do much with," says Renewcell strategy director Harald Cavalli-Björkman. "Aside from a small loss, all of the waste cotton we use is turned into pulp." The mill has a contract with Chinese viscose manufacturer Tangshan Sanyou Chemical such as Birla in India and Kelheim Fibres in Germany. Swedish fashion brand H&M, which produces three billion garments per year and is an early investor in Renewcell, has signed a five-year, 10,000 tonne deal with the pulp mill – the equivalent of 50 million T-shirts. Zara also partnered with Renewcell on a capsule collection in 2022. "We want to build more mills," says Cavalli-Björkman, adding that Renewcell hopes to be able to recycle 600 million T-shirts within a year – the equivalent of 120,000 tonnes of textile waste and a doubling of its current capacity. "But that is still very little compared to the global market for textile fibres. By 2030, we're aiming for a capacity of 360,000 tonnes." But Renewcell's technology has limitations: it can only recycle clothes that are made of cotton, with an allowance of up to just 5% non-cotton content. "Partly, it's because it's difficult to separate polyester, too much of which affects product quality, but also, we want to make sure we have a decent yield coming out the other end," says Cavalli-Björkman. "With the exception of things that require exceptional durability like workwear or specific properties like waterproof clothing, the only reason for using polyester is because it's cheap – yet with a huge cost to the environment. We'd like to turn back that tide, to get clean materials and fewer blends into circularity." Cavalli-Björkman says that fast fashion's reliance on low-cost synthetic fibres has affected consumer attitudes towards the value of clothes. "Before we had industrialised textiles production, people took care of their clothes," he says. "They repaired them because clothing was an investment. Today, clothing is so cheap that the perception is, you can always grow some more cotton, you can always pump some more oil – that's far easier than putting the effort into creating a quality product from something that already exists and could stay in circulation." Natascha Radclyffe-Thomas, professor of marketing and sustainable business at the British School of Fashion, agrees that it's a question of value. "We often feel like we can recycle our way out of waste, and while recycling is a key part of the solution, it's not the starting point," she says, pointing to overproduction and consumption as root causes of the fashion industry's waste problem. Inexpensive, low-quality clothes mean it is often cheaper for consumers to buy a new outfit, rather than getting an item repaired. But other companies are focusing their efforts on synthetic and blended materials which are widely used by fast fashion brands. Worn Again Technologies, based in Nottingham in the UK, raised £27.6m ($34.2m) in October to build a textile recycling demonstration plant in Winterthur, Switzerland, for hard-to-recycle fabric blends, such as clothes made from polyester and cotton mixes. Rather Fu than operating its own commercial-scale mill, Worn Again (in which H&M has also invested) is developing a process to be licensed to large-scale plant operators around the world, due to be launched in 2024. As its feedstock, Worn Again uses textiles made from pure polyester or poly-cotton blends, with up to 5% tolerance of other materials excluding metal, such as zips and hardware. There are two output streams. One is a PET pellet, which has the same chemical structure and make-up as virgin PET, to be made into recycled polyester. The other is similar to Renewcell's: once the cotton is separated from the poly-cotton blend, the cellulose is purified and recaptured in the form of a pulp or cellulosic powder, to be made into viscose. Worn Again's technology is different to what is currently available because it uses chemical, rather than mechanical recycling, which splits the polymer chains and brings them back to virgin equivalent molecular weight. This allows for better quality and scaleable recycling of polyester and poly-cotton blends. Another key differentiator of the technology's chemical recycling is that it can recycle textiles back into textiles. Radclyffe-Thomas says this sort of approach may help to address the systemic issue of circularity in the fashion industry when it comes to synthetic fibres. Many brands, she says, often peddle claims of recycling and reusing textiles by championing their recycled polyester collections, but, in fact, these garments are not "circular" because they are made from recycled plastic bottles – not textiles. "The vast majority of recycled polyester in fashion comes from a different supply chain altogether: the plastic bottles industry," she says. "Originally, when brands started making garments from plastic bottles, it was seen as a very positive step. We see now that this isn't a circular model." According to a report by the campaign group Changing Markets Foundation, "turning plastic bottles into clothes should be considered a one-way ticket to landfill, incineration or being dumped in nature". Not only is the polyester being taken out of a closed-loop system where they would normally be recycled back into bottles, the report says, the clothes made from it also shed microplastics into the environment and cannot be recycled multiple times. "When we first started, we thought we'd be recycling pure polyester, but it wasn't long before we realised that there isn't a lot of pure polyester in the global pool of used textiles," says Cyndi Rhoades, founder of Worn Again Technologies. "A high percentage of clothing is made up of blends, so we knew that if we wanted to create a solution for textile recycling, it had to be able to deal with blends." According to Rhoades, the goal is to have 40 licensed plants by 2040, each operating at 50,000 tonnes of output per year, the equivalent of two million tonnes of polyester and cellulosic raw materials going back into supply chains for making new textiles like viscose and recycled polyester. It's a space with a growing number of innovators using different technologies to recycle blends, including US-based Evrnu and Circ, which recently raised $30m (£24.2m) in funding. They are part of a 30-strong group of technology-driven companies working with Canopy. Canopy also works with fashion brands, including US-based Reformation, for which viscose represents almost 50% of all fabric volume. Earlier this year, the brand relaunched its Ref Recycling programme. "We're aiming to reduce the volume of viscose we use and transition to alternatives that use recycled, regenerative, and renewable fibre sources by 2025," says Kathleen Talbot, Reformation's chief sustainability officer and vice-president of operations. "We're starting out with recycling shoes, activewear, sweaters, outerwear and denim because those are categories and materials we have textile recycling solutions for already." The brand works with SuperCircle, a US tech company that manages the logistics of the recycling process from waste to reusable material, to sort and aggregate used Reformation products by fibre type. It then sends them to recyclers to make fibre that can be used in future products. To scale circular fashion models, proper infrastructure and services that facilitate recycling and take-back schemes need to be in place and accessible, says Talbot. Nicole Rycroft, the founder of Canopy, recalls incredulous conversations from as recently as 2013 about the potential of textile-to-textile recycling. "Many conventional producers told us we were crazy, that next generation solutions were impossible at commercial scale," she says. "Renewcell is testament to what's possible. By 2030, we want at least half of manmade cellulosic textiles to come from circular feedstocks." But she says there need to be regulatory policies in place too. Rycroft references the European Commission's proposals to tackle textile waste by making them more durable, reusable and recyclable. The EU Strategy for Sustainable and Circular Textiles will call for all textiles on the EU market to be "long-lived and recyclable, made as much as possible of recycled fibres" by 2030. In addition, the EU will require textile waste to be collected separately, like paper or glass, by 2025. Kate Riley, fibre and materials strategy lead for synthetics at the non-profit Textile Exchange, says companies will need to develop business models which focus on repair, This is key to working towards closing the loop and transitioning away from reliance on conventional fossil-fuel derived synthetics towards textile feedstocks," she says. Textile Exchange describes the increase of textile-to-textile recycling as the "holy grail" of circular fashion. With a cohort of companies ready to scale their proven technologies, that goal no longer seems so elusive.
Source: The bbc.com
The UNFCCC Fashion Industry Charter for Climate Action gathered fashion brands, policy makers, garment manufacturers, experts, renewable energy developers, and financial institutions to identify key actions needed to transition the industry towards renewable alternatives, read a press release. The main focus was the need to advance policies for Power Purchase Agreements and similar solutions, like green tariffs, to enable the industry to procure renewable energy. "We are happy to take part in this important conversation about how to increase the access to renewable energy for the suppliers we work with and what kind of overall business and legal environment is needed to achieve this. Given the changing legislations in the world, we want to make sure that our suppliers in Bangladesh do not fall behind," said Yosef El Natour, head of production H&M Group. "H&M Group supports the development of the necessary frameworks enabling our suppliers to move towards more renewable energy. Power Purchase Agreements can play a key role in the green transformation of the industry in Bangladesh, helping suppliers to remain resilient while ensuring that the local communities also benefit from this development," said H&M Group Country Manager for Bangladesh Ziaur Rahman. "We are grateful to the government of Bangladesh for their kind support to hold this dialogue, for their presence here today as we seek for solutions, looking at how can make the transition quicker, what are available tools and mechanisms in the context of Bangladesh as a leader in RMG sector and how can we design policies that drive innovation, that provide incentives to invest, and create a level playing field as needed," said Lindita Xhaferi-Salihu Fashion Industry Charter Lead, UNFCCC. At the closing of the event, it was clear that while many challenges lay ahead, the transformation of the energy market in Bangladesh requires all parties to work together proactively in developing new frameworks in order to proceed faster and meet our climate ambitions. All eyes will be put on the next UN Climate Change Conference (COP28) in which public and private sectors from all industries will have to respond on the progress of their climate ambitions towards 2030. H&M Group's priority is to reduce its absolute emissions by 56% by 2030 – in line with its approved science-based target. In addition, the company has a goal to source 100% renewable electricity to run its operations and supply chain by 2030. H&M Group is committed to be part of the solution when fighting climate change and collaborating with others. The company also works to drive the agenda forward for new frameworks enabling additional renewable electricity into the grids, added the release.
Source: The Tbs news
Turkey’s already struggling economy has been hit by earthquakes, leading to a major crisis in the country, resembling the situation faced by the Ottoman Empire during and before the Great War or World War I. Then one of the most powerful empires in the world, the Ottoman Empire collapsed due to financial mismanagement and natural calamities, such as floods, corruption and huge debts forcing it to default on loans. Meanwhile, in the present day, apart from President Recep Tayyip Erdogan’s unpopular policy of cutting interest rates despite skyrocketing inflation, repeated earthquakes in Turkey have wrecked the nation’s creaking economy even further. The cost of earthquakes in eastern Turkey is estimated to be approximately $84 billion, which is around 10% of the country’s GDP, according to reports.
Impact of President Recep Tayyip Erdoğan’s unconventional policies: In October last year, inflation surged to 85% in Turkey, and now due to the earthquake it is expected to remain above 40% for the next few months. Normally central banks raise interest rates to counter inflation, but Erdogan did the opposite. He kept cutting the rates despite sky-high inflation as he considers interest the ‘mother and father of all evil’. In Islam interest on loans is treated as usury and labelled forbidden. Many officials of Turkey’s central bank have been fired by the President because they failed to lower interest rates.
Devaluation of Turkish Lira: As a consequence of runaway inflation, the lira has fallen over 1% this year after dropping 30% a year before, becoming one of the worst-performing currencies in emerging markets. Printing too much money is never a good idea and the lira’s supply has been increasing rapidly as compared to relatively harder currencies like the US dollar. According to World Bank data, Turkey’s broad money supply rose by about three and a half times between 2014 and 2020 while the broad money supply in the US rose by around 50% during the same period causing the value of the Turkish lira to drop against the dollar. According to reports, Erdogan believes that if the lira loses value against the dollar, Turkey’s exports will simply become cheaper and foreign consumers will want to buy even more. But as the country is majorly dependent on imports, they get costlier as the value of the lira decreases.
Human rights violations put Turkey’s full-fl edged: EU membership bid on hold Human rights violations have put Turkey’s desire to become a full-fledged EU member country from a trading partner to hold. The issue arose in 2016, which made foreign financial institutions think twice before lending money, and tourists think twice before planning a holiday. Tourism contributes significantly to Turkey’s economy. Turkey has been a candidate country to join the European Union since 1999. Accession negotiations started in 2005, but have not advanced recently.
Turkey remains on FATF grey list: Turkey continues to remain on the Financial Action and Task Force’s (FATF) grey list. If a country is placed on the grey list it means that it gets difficult to receive aid from the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB) and the European Union. On Turkey, the FATF said “since October 2021, when the nation made a high-level political commitment to work with the FATF to strengthen the effectiveness of its Anti Money Laundering (AML)/Counter-Terrorist Financing (CFT) regime, it has taken further steps towards improving its AML/CFT regime, including by issuing regulations regarding politically exposed persons and guidance to the private sector on detecting terrorist financing, as well as increasing the FIU’s proactive dissemination of financial intelligence. The FATF continues to monitor that Türkiye’s oversight of the NPO sector is in line with the risk-based approach as set out in the FATF Standards.”
Source: Financial express
