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The Centre has taken steps to enhance exports by micro, small and medium enterprises (MSME) sector by setting up facilitation centers across the country, an official said on Thursday. The export facilitation centers will provide the requisite mentoring and handholding support to the sector and also help to set up a network of entrepreneurial leaders, the joint director of Indian Enterprise Development Service (IEDS) under the union MSME ministry, D Mitra told a seminar here, The Centre will also help the entrepreneurs of the sector to ensure marketability of their products and services by way of visiting and participating in seminars, exhibitions and conferences, he said. Support will also be given in areas like technology infusion, exploration of business opportunities and forging joint ventures, he said According to the MSME ministry, the market is getting bigger with the advancement of digital technologies and opening up of more export markets. Mitra said this is the time to sensitise exporters about the present and future potential of export promotion for growing the business.The MSME ministry is working to make the units familiar with digital marketing, procure from Government E Marketplace and adapt to public procurement policy. According to government statistics, the share of MSME products in national exports is in excess of 34 per cent.
Source: Economic Times
The department for promotion of industry and internal trade (DPIIT) is starting an exercise to prepare a framework for determining logistics cost in the country, an official said on Thursday. For this, the department will be holding a workshop on the subject, where experts, academicians, professors, and statisticians across the globe will participate on March 20 here besides government officials. "We hope to firm up an index to gauge the country's logistics cost in a year. It will be an annual affair after that.We are organising an international workshop on logistics cost framework," the official said. Many international players from countries like Japan, Korea and Germany will attend. "We will deliberate on various modules and choose the framework that best suits us," the official added. At present, the government is going by certain estimates which suggest that logistics cost in India stands at about 13-14 per cent of the country's GDP. The government has rolled out a national logistics policy and PM Gati Shakti initiative to boost competitiveness of industry and cut the logistics cost.
Source: Economic Times
Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said that PM GatiShakti National Master Plan and National Logistics Policy (NLP) together will greatly help both businesses and people, improve competitiveness, improve investment into India and give the world confidence that India is on the rise. He was addressing the gathering at the Indian Chamber of Commerce’s (ICC) National Conference on GatiShakti in New Delhi today. Shri Goyal expressed his appreciation for the Indian Chamber of Commerce (ICC), which is based in Eastern India for coming to Delhi to engage with an initiative as crucial as GatiShakti. Shri Goyal said that the world today recognized India as a leader of innovation. He observed that India has been rapidly developing new tools for good governance, ease of living, and ease of doing business, such as PM GatiShakti National Master Plan. He observed that gone were the days when India had to wait for decades for new ideas and technology to emerge in the west and adopt them to help our businesses and our people. He cited the Unified Payments Interface (UPI) framework as an example of India's technological prowess, and an initiative which has had a deep impact on the country's economy. He further informed that in December last year, India had clocked 7.28 billion digital financial transactions in one month, thanks to UPI. The Minister added that the world was now aspiring to adopt UPI for digital financial transactions. The Minister emphasized that India was second to none in technology and new ideas, and that the PM GatiShakti initiative was yet another example of this capability. He recalled how the Prime Minister, about 15 years ago, conceived the idea of using geospatial technology to plan infrastructure better and set up BIZAG-N in Ahmedabad. He pointed out that the PM actively engaged with BIZAG during its formative years and planned infrastructure in Gujarat using the data points generated by the institute. As a result, Gujarat is far ahead of many other areas in terms of quality and speed of infrastructure development, he observed. The Minister went on to demystify PM GatiShakti, explaining that it created layers of data where different geological, ecological and infrastructural elements across the country were mapped and captured. Currently, there are about 1300 layers of data, consisting of forests, wildlife sanctuaries, rivers, UNESCO world heritage sites, among others, he said and added that GatiShakti would not only address critical gaps in infrastructure but also help in planning social infrastructure such as schools, nursing homes, hospitals, etc. The Minister further explained that the data layers of GatiShakti engage with each other through APIs, and if an alignment of a particular project was put into GatiShakti, it would highlight the challenges of implementation and help re-align the project, saving time and cost. He also highlighted that 12 states have digitized their land, which further strengthened the planning. The Minister stated that no state has politicized GatiShakti, as it is an initiative that would help our businesses, our people and the economy as a whole. He added that reducing the cost of logistics is critical to achieving India's goal of becoming a developed country by 2047. He stated that PM GatiShakti, if used well, will help bring down logistics costs tremendously. He highlighted that all highways, railways, ports, and airports were mapped on GatiShakti, which would help in building seamless connectivity networks and creating a positive impact on the logistics ecosystem. The Minister lauded the Prime Minister’s efforts in galvanizing small and developing nations to demand a fair agreement in the interest of equity and balance between the developed and developing world, which was finally adopted in COP 21 in Paris. The Minister observed that every world leader today was looking up to India, and that there was no part of the globe that did not look up to PM Modi to find solutions to challenging global problems. The Minister also highlighted the success of the government in meeting the basic needs of life for its citizens, including food, clothing, shelter, health and education. He mentioned that India’s healthcare program, Ayushman Bharat covered over 500 million people and said that the New Education Policy has been accepted and lauded across sections. These initiatives, Shri Goyal said, had made India's population, especially the youth, highly aspirational. The Minister stressed that GatiShakti is a national approach that has come out of exhaustive consultations and collective, collaborative efforts of countless stakeholders. He concluded by expressing confidence that with the enthusiasm that he saw among the people of the country and the turbo-powered work that is happening in several fields, India may surpass the mark of becoming a USD 32 trillion economy by 2047.
Source: PIB
Former Australian Prime Minister Tony Abbott on Thursday said the recently-implemented trade deal between India and Australia would boost economic and bilateral ties between both nations. “The existing FTA is good... can it be further developed? Yes, it can (be) and my understanding is that the trade ministers (of both the countries) will start discussions in coming days (on expanding the scope of the existing trade deal),” he said at a media briefing, adding that businesses on both sides should formulate strategies to take advantage of the deal. The interim trade deal between both nations was signed in April last year but kicked in from 29 December. Both sides have now started working towards a comprehensive trade deal. Abbott is here in India for the multilateral conference Raisina Dialogue. “I will make it my personal mission... to make India a much more important strategic partner of Australia than China,” he said. In recent times, he said it was observed that China is using trade as a weapon against Australia and India would never do anything like that. With regard to a question on Adani group, and allegations by Hindenburg Research, Abbott said that he has not seen the details of the report and “assume if there is anything in them, the relevant corporate regulators will do their job”. “As far as I am concerned I regard Adani as a benefactor to Australia and I admire his success in building up a very large diverse business empire from scratch,” said.
Source: Business-Standard
The revision in the previous years’ data has had a marginal impact on the third quarter GDP estimates, but higher inflation as well as a fall in incomes and employment along with continued uncertainty over the economic climate has dented private consumption in the October to December 2022 quarter, many economists feel. They expect private consumption to remain muted even in the fourth quarter as the base effect wears off and pent-up demand fades away. “The revision of the data of previous years has some effect on the third quarter figures but not a very strong effect. When incomes fell due to the impact of the Covid-19 pandemic, the precautionary motives of households increases and they started holding on to savings. That effect has continued beyond the pandemic due to the continued uncertainty,” said DK Srivastava, chief policy adviser, EY India, adding that private consumption would rise once employment and incomes take off in small scale businesses and MSMEs. According to the NSO data released on February 28, real GDP is estimated to have grown by 4.4% in the October to December 2022 quarter of the fiscal from 6.3% in the second quarter and 13.2% in the first quarter. More worryingly, indicating a dampening of private demand, private consumption expenditure is seen to have grown by a mere 2.1% in the quarter under review in real terms. In nominal terms, it increased by 8.1% to `43.9 trillion in the third quarter compared to `40.5 trillion in the second quarter of the current fiscal. However, the finance ministry has pointed out that the revision of GDP data for previous year has made the third quarter growth seem understated. Madan Sabnavis, chief economist, Bank of Baroda said the consumption growth is slow due to high inflation. “Are people buying more? Probably not. Consumption is likely to remain under pressure in the fourth quarter as well as the pent-up demand in services will also go away. Auto sales could continue to remain high as the supply side issues are normalising,” he said. Data such as that on industrial output also shows that consumer durables have shown negative growth in many months. Industrial output grew by 4.3% in December 2022 from a year ago with consumer durables contracting by 10.4% in the month while consumer non-durables grew by 7.2%. With retail inflation rising to a higher than expected 6.52% in January, there is heightened expectation of a further hike in the repo rate, which is already at 6.5%, in the April policy review. Analysts also point out that while consumer demand in higher income levels is still resilient, it remains subdued in mid and low income groups. “The pandemic and inflationary pressures have hurt a lot of people at the bottom of the pyramid and they are yet to recover,” said an analyst. According to a report by Emkay Global Financial Services, the implied real GDP growth rate for the fourth quarter of the fiscal is 5.1% with PFCE seen to be rising by just 1.5%. Sachchidanand Shukla, Chief Economist, Mahindra Group said, “We expect private final consumption expenditure to remain under a spot of bother and manifesting in the form of prolonged K-shaped recovery due to the lagged effect of interest rate hikes, subdued export demand, which will impact incomes in export intensive sectors like IT and textiles etc; and lastly the contraction in the centre’s revenue expenditure this year at about 4% YoY.” While there is some expectation of a pick up in rural demand, but the current heatwave as well as concerns of El Nino are beginning to raise questions. A report by Motilal Oswal said that overall, consumption demand has started its southward journey. Both rural and urban consumption grew at a three-quarter low of 4.6% and 6.6% year on year, respectively, in the third quarter of the fiscal. “Going ahead, though the central government continues to focus on the rural sector, weak income growth combined with higher interest rates could bring down overall consumption demand further,” it said. An SBI Ecowrap report however, noted that PFCE is expected to increase to Rs 164 trillion in FY23, with the yearly growth moderating to 14.8%. “The growth rate has moved back to double digits post Covid, indicating the positive growth momentum. Per capita PFCE also shows an improvement of over 10% yoy to Rs 63,595 crore in FY22 after dipping to Rs 57,728 crore in FY21,” it further said.
Source: Financial Express
How many pieces of clothing do you think you have in your wardrobe? In today's world of fast fashion, easy online shopping and ever-changing trends, chances are it's way too many. Now, a new report from a Berlin sustainability think-tank, the Hot or Cool Institute, lays out how many items of clothing the average person in a four-season G20 country such as ours really needs: 85 (keep in mind that includes coats and shoes, but not underwear and accessories). Going by the institute's math, that works out to about 23 outfits total, which they say can include one to four pieces of clothing. The report notes we need to drastically reduce our clothing consumption if we're going to meet the 1.5 C target of the Paris Agreement. "Current trends in fashion consumption, in particular fast fashion, cannot be maintained if we aim to achieve a fair and just transition to climate neutrality," the authors say. That number 85 falls within what the institute calls a "fair consumption space," defined as "a space where consumption levels stay below environmentally unsustainable levels yet above sufficiency levels that allow individuals to fulfil their basic needs." It assumes the average person needs workwear, home wear, sports and activewear, festive occasion outfits and outdoor clothing, and all 85 items are actually in use. It also requires a reduced carbon footprint — such as avoiding excessive laundry and impulse shopping, extending the life of your garments through mending and buying second-hand or swapping. When you consider that the average person in North America purchases 37 kilograms of clothing per year, according to Katherine White, a professor of marketing and behavioural science at the University of British Columbia, it's safe to say many of our wardrobes far exceed the recommendations. "The average North American buys way too much clothing," White told CBC News. "Part of this is driven by the fact that we are constantly bombarded with advertising messages to buy more stuff. The system is set up to remind, reinforce and reward us for making repeated consumption choices with short-term hedonic payoffs." Advocates have been saying this needs to change for years. A recent study found that Ontarians generate 500 million kilograms of textile waste a year — and that 86 per cent of those materials have reuse or recycling potential. The textile and clothing industry is also responsible for two to eight per cent of the world's greenhouse gas emissions, according to the United Nations Alliance for Sustainable Fashion, and textiles account for about nine per cent of annual microplastic losses to the oceans. So, with that in mind, how can you cut down on your own clothing consumption? First, think of it in terms of pieces, not outfits, said Erin Polowy, the founder and editor of Canadian clothing sustainability website My Green Closet. With careful planning, you can have a diverse and fashionable wardrobe with very few pieces in it, she said — even fewer than the 85 suggested in the report. "I can make 40 or 50 outfits from my roughly 33-item wardrobe that I do every season," she told CBC News. "There's a lot of creativity that comes with constraint." In a recent YouTube video, for instance, Polowy shows viewers her winter capsule wardrobe — a curated collection of a limited amount of clothing that she mixes and matches — which contains just 28 items to get her through an Edmonton winter. Pay careful attention to what you actually wear day-to-day, Polowy suggests, and build a wardrobe around a few quality, staple pieces that you love. When you are looking to add new pieces, shop second-hand, try to avoid impulse purchases and choose more sustainable clothing brands.
Source: The cbc.ca
Commerce and industry minister Piyush Goyal on Thursday said that PM GatiShakti national master plan and logistics policy together will help improve competitiveness of businesses and attract investments into India. He said that layers of data are there at PM GatiShakti portal where different geological, ecological and infrastructural elements across the country were mapped and captured. Currently, there are about 1,300 layers of data, consisting of forests, wildlife sanctuaries, rivers, UNESCO world heritage sites, among others, he said and added that GatiShakti would not only address critical gaps in infrastructure but also help in planning social infrastructure such as schools, nursing homes, hospitals. He added that reducing the cost of logistics is critical to achieving India’s goal of becoming a developed country by 2047. “PM GatiShakti, if used well, will help bring down logistics costs tremendously,” the minister said, adding, all highways, railways, ports, and airports were mapped on GatiShakti, which would help in building seamless connectivity networks and creating a positive impact on the logistics ecosystem. On October 13 last year, the PM GatiShakti – National Master Plan was launched with an aim to develop integrated infrastructure to reduce logistics costs. All logistics and connectivity infrastructure projects, entailing an investment of over Rs 500 crore, are routed through the network planning group (NPG).
Source: Financial Express
The geopolitical crisis over Russia’s invasion of Ukraine and growing USChina tensions have led to “slowbalisation,” where global integration is happening at a slower pace, according to retired General David Petraeus. “We are in an era of renewed great power rivalries, where geopolitics very much defines what’s possible in terms of economics, trade and investment,” said Petraeus, chairman of KKR’s Global Institute, on Monday. “Globalisation is not over by any means, but it has now become ‘slowbalisation,’ where the growth in global trade is now much flatter.” While there’s room to grow manufacturing investment between the US and India, the Philippines, Vietnam, Mexico and other places, “none of these can replace China’s colossal capacity, and we cannot decouple from China,” said Petraeus, a former CIA director Market Intelligence in Long Beach, where more than 3,700 representatives of the container-shipping industry are kicking off the contract-negotiating season, the first such gathering since supply chains have begun to normalise from the pandemic-era disruptions. As uncertainty about the global economy remains high, the World Trade Organization had sounded the alarm over slowing momentum in global trade. The Geneva-based organisation estimates that the volume in global merchandise trade will increase 1% this year, a sharp slowdown from the estimated 3.5% expansion in 2022.
Source: Economic Times
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The dispute settlement system of the World Trade Organisation (WTO) is a key mechanism for resolving trade disputes between WTO members. It provides a process for members to challenge measures taken by other member(s) that are inconsistent with the WTO agreements and seek to have such measures removed or modified. As of February , different WTO members have referred disputes to the WTO Dispute Settlement Body. Not all of these disputes required formal rulings for resolution. A mutually agreed solution is always the preferred outcome, and consultations among disputing members within the framework of the WTO dispute settlement can often be sufficient to resolve the matter in dispute. Bangladesh has made the use of this system to challenge measures taken by other countries and to protect its national interests in international trade. For instance, Bangladesh has successfully utilised this system to challenge the anti-dumping measures taken by India on lead-acid batteries. In addition, Bangladesh was also a third party in the US-India dispute over rules of origin for textiles and apparel products in . Despite the above successes in challenging the anti-dumping measures taken by other countries, the country has yet to establish a case against such practices. In , for example, Bangladesh faced anti-dumping duty from the USA on Bangladeshi cotton shop towels. This continued for two sunset reviews, but the duty was eventually withdrawn. Bangladesh also faced anti-dumping measures from Brazil for sacks, jute bags and jute yarn in , anti-dumping measures on particle boards from India in , and anti-dumping investigation from Turkey for textile and apparel. In , it also faced anti-dumping duties on imports of bicycle parts from the European Union. Again in and , Pakistan and India respectively imposed anti-dumping measures on hydrogen peroxide (HP). The investigation process of India was found to be in direct conflict with sub-section of the WTO rules, as they did not provide any actual and mathematical figures. The Supreme Court of Pakistan also relied on secondary information rather than the information provided. In , India again imposed anti-dumping duties on imports of jute goods from Bangladesh. Bangladesh is lagging behind in filing a case at the WTO Dispute Settlement Body due to the lack of legal expertise, economic barriers, private actors' concerns, limited access to finance and political factors. Thus, a detailed policy framework addressing all legal and economic aspects needs to be prepared to identify a way forward.
Source: The Daily star
On March 1 this year, the International Hotel Tashkent hosted the Uzbek-Spanish business forum, organized by the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan and the Ministry of Industry, Trade and Tourism of The Forum was attended by Deputy Minister of Investment, Industry and Trade of Uzbekistan Oybek Khamraev, Deputy Minister of Industry, Trade and Tourism of Spain Xiana Mendez, heads of ministries, departments and over 100 leading companies of both countries. In their speeches, the speakers noted the effectiveness of the reforms carried out in Uzbekistan. Thanks to the measures taken, the investment climate is improving, the volume of foreign trade is increasing. Thanks to the GSP+ beneficiary status, in 2022, the export of Uzbek products to the EU market increased by almost 50%, and to the Spanish markets by almost 2.5 times. At the same time, along with the significant potential for the development of bilateral trade, the need to provide additional support for the business circles of the two countries in order to expand the list and increase the volume of goods supplied was noted. During the event, the Uzbek side took initiatives to enhance the use of the competitive advantages of the two countries to expand bilateral investment cooperation in priority sectors of the economy. The most promising areas are automotive industry and production of components, pharmaceutical, textile, and food industries, agriculture, development of public services and infrastructure. Moreover, both states are members of large regional associations with free trade regimes, which creates additional prerequisites for expanding trade ties between entrepreneurs of the two countries. The commitment to use the available opportunities to increase the volume of bilateral trade by increasing the volume of mutual supplies of pharmaceuticals, textiles, nonferrous metals, agricultural products, electrical equipment, opening of trading houses, holding joint business forums and "Made in Uzbekistan" and "Made in Spain" exhibitions was emphasized. As a result of the forum, agreements were signed in the areas of water resources management and the construction of hydrotreating facilities in different regions of Uzbekistan, the introduction of new approaches and technologies for the development of sericulture and karakul breeding. Within the framework of the business forum program, B2B negotiations were also held, during which entrepreneurs and investors had the opportunity to find points of intersection of interests, discuss new promising projects in the food sector, green energy and production of construction materials. In the afternoon, the first meeting of the Intergovernmental Commission between the Republic of Uzbekistan and the Kingdom of Spain on trade and economic cooperation was held, which was attended by the heads of relevant ministries and departments of the two countries. Among the key agreements is the development of a roadmap for the implementation of further joint measures within the framework of expanding bilateral trade, removing trade barriers, organizing mutual exhibitions and fairs, and opening joint ventures to produce high-value-added goods.
Source: The einnews.com
The fashion industry was looking in good shape in 2021, recovering from COVID-19 quicker than had been forecast, with a global growth of more than 11%. However, this trend was stopped in its tracks in 2022, as soaring inflation, the war in the Ukraine and China’s zero COVID policy took their toll and sales slumped again, according to market analysts Euromonitor. Inflation has caused huge problems for the fashion industry, says Marguerite Le Rolland, research manager for apparel and footwear at Euromonitor. “Purchasing power is decreasing, and industry players are really reluctant to pass on too much of these costs to consumers because demand has really slowed down since the second half of 2022, and the economic outlook is not good.” Supply chains have also been hit, and companies are moving production in response. In the main, they are moving to other parts of the same region, for example, away from China and towards Vietnam, Thailand, India and Indonesia, she says. However, Benetton has relocated more than 10% of production from Asia to Serbia, Turkey, Tunisia and Portugal, with an overall aim to move half its production from Asia to the Mediterranean by the end of 2023. “Manufacturers, retailers and brands are diversifying their sourcing and production hubs. There’s an awareness that you shouldn't put all your eggs in the same basket, so they’re trying to establish several suppliers in different markets,” she adds. Fashion brands are also striving to have stronger relationships with suppliers, according to Andrew Martin, executive vice president of the Sustainable Apparel Coalition (SAC). The pandemic was a wake-up call for the sector, which faced a massive backlash from consumers following revelations that some brands had cancelled massive orders for clothing, leaving workers in poorer countries destitute. “Companies that had better production practices in place to start with, and a better contract, were the ones (that) came through the pandemic better, so there’s a recognition that that is more and more important,” he says.
Source: The reuters.com
As fashion brands face mounting pressure from consumers, legislators, and investors to improve their sustainability credentials, they are increasingly shifting to new circular business models. These transitions simultaneously bring with them exciting opportunities, as well as new challenges in terms of due diligence as companies build additional relationships across their supply chains with recyclers, sorters, collectors, and other business partners. That was one of the topics being discussed at the OECD Forum on Due Diligence in the Garment and Footwear Sector, which took place in Paris from February 16 to 17. Mauro Scalia, the director of sustainable business at Euratex, a body representing European apparel and textile manufacturers, said about 16 pieces of legislation are currently being worked on to improve the textile sector, which he described as both “exciting” and “challenging”. Only about one percent of the 7.5 million tonnes of textile waste in Europe each year is being recycled, Scalia said. The aim is to recycle 2.5 million fiberto-fiber tonnes by 2030. “That’s a clear goal we have,” he said, but it requires “a new infrastructure and value chain” which is calculated to require about 150 to 250 additional facilities for collection, sorting, and other processes. That means the industry is moving towards “uncharted territories”, Scalia said, as the value chain gets bigger and fashion companies begin collaborating with business partners they normally wouldn’t work with, for example ones from the sorting and chemical industries Urgent need fortraining, upskilling The transition from linear to circular models will bring new challenges, agreed Maria Luisa Martinez Diez, the public affairs director from Global Fashion Agenda. For that reason, she said “there's a need for training and upskilling” to ensure due diligence is met and to minimise the risk of unemployment and exclusion. This includes training in technical competencies to operate and maintain new equipment, but also includes digital literacy - training workers to use modern, data-driven systems increasingly used in the circular fashion industry, for example when recycling fibers. Global Fashion Agenda launched the Circular Fashion Partnership in Bangladesh in 2020 to do just that by supporting the development of textile recycling in the country, Diez noted. The partnership now works with 80 manufacturers, nearly 20 recyclers, and 20 global brands. The project will continue through 2025, and has since been expanded to Vietnam and Cambodia. Tobias Fischer, the development sustainability manager at Swedish fashion giant H&M, also noted the industry faces additional challenges that come with mounting legislation and shifting consumer behaviour towards circular models. “We are seeing a lot of business opportunities, but where there are opportunities, there are also risks,” he said, as companies expand from dealing with due diligence from tier one and two, to beyond. “It’s mainly a question of reskilling,” he agreed, as companies begin working with new partners in less formal sectors, and noted the importance of addressing human rights in those sectors where it's currently less regulated. “We have been working together with our foundation on a few projects in India where we are looking into this and how to get the waste pickers into the more formal industry,” he said, adding that it’s a significant process that “will take some time”. The issue of waste pickers was mentioned a lot during the forum, as it is an area that can be dangerous not only because of the physical nature of the work, but also because the industry can often be infiltrated by criminal gangs, both in Europe and further afield. Mauro from Euratex noted that the issue of waste handling is going to be part of policymaking at the national level in the EU, and mentioned the importance of EPR schemes, an environmental policy approach in which a producer's responsibility for a product is extended to the post-consumer stage of a product's life cycle. New opportunities and shifting leverage While there are undoubtedly challenges faced when bringing in new, often less formalised business partners when entering the circular market, there are also undoubtedly exciting new opportunities. “There's potential to do things better in a circular economy from a social standpoint,” said Diez from Global Fashion Agenda, such as increasing traceability and ensuring better value distribution with circular business models. And as linear value chains evolve to more complicated ones where additional technical knowledge is needed, we’re also seeing a shift in leverage between big fashion brands and suppliers, said Scalia from Euratex. For example, the industry is seeing a growing number of smaller companies who can create innovative new materials or recycle fibers, something bigger fashion brands have taken notice of, and have even started investing in such companies. One such example was in July 2022 when Spanish fashion giant and Zara owner Inditex invested in Circ, a tech company that powers patented textile recycling processes. “We are seeing fashion brands collaborating with fiber makers in a different way,” Scalia went on to say. “It's stimulating a new type of collaboration because it's not like I'm buying a commodity that I can find everywhere in the world. I need to work with my suppliers; I need to discuss what is technically feasible and how I can help them.” He continued: “We've seen this a lot: professional brands helping suppliers in expanding their capacity, even obtaining financing for them.” Scalia summarised circular economies as a space where “profitability and sustainability come together” which was “nowhere on the agenda five or six years ago” but will require ever more regulation. “We are seeing this in Europe, a big laboratory for many experiments, but we see many other regions of the world from Japan to Bangladesh, to India, to South Africa and other regions doing the same,” he concluded. “So I think this is a very exciting opportunity.”
Source: The Fashion United
