INTERNATIONAL
NATIONAL
India is spinning an ambitious yarn of textiles growth inspired by the 5F vision of Prime Minister Narendra Modi—farm to fibre to factory to fashion to foreign—which will be shaped by textile parks with world-class industrial infrastructure to attract cutting edge technology, global players to manufacture in India, higher FDI, local investment in the sector and generate 20 lakh jobs. Despite adverse headwinds, the Government is convinced of India’s potential to occupy a place in resilient supply chains and has set a target of USD 100 billion textile exports from India in the next five years. President of the Federation of Indian Exporters Organisation, A. Sakthivel, underlines India’s advantage in the textile sector with abundance of natural fibres, skilled manpower and competitive wages. “Besides, we are in the entire value chain of textile from fibre-yarn-fabrics-made ups and garments,” says Sakthivel. On a more positive note, amidst a global slowdown, the operating profitability of cotton yarn spinners is set to improve to 11-12 per cent in fiscal 2024, says Crisil Ratings despite muted exports, the setting up of a PM Mega Integrated Textile Sector and Apparel (PM MITRA) textiles park in Uttar Pradesh’s Lucknow and Hardoi districts has been approved and an agreement has been inked to establish the first mega integrated PM Mitra Park in Tamil Nadu. On the exports front, India scaled its highest exports tally at USD 44.4 billion in textiles and apparel (T&A) including handicrafts in FY 2021-22, indicating a substantial increase of 41% and 26% over corresponding figures in FY 2020-21 and FY 2019-20, respectively. India’s top textile ollowed by EU with a share of 18%, Bangladesh with 12% and the UAE with 6%. Global headwinds have since taken the shine off textile exports, suggests a Bank of Baroda review of India’s external sector in FY23. In FY23, while India’s merchandise exports rose by 6% to USD 447.5 bn from USD 422 billion in FY22, within this, exports of textiles dropped the most by 13.6% amidst a fall in global demand. Other reports suggest domestic production has turned sluggish in recent months, exports are facing stiff competition from countries like Bangladesh and Vietnam due to preferential tariff treatment and from cheap Chinese imports. All this has prompted an aggressive campaign to diversify the textile industry output by boosting the technical textile sector which rides on the Rs 1,480 crore National Technical Textile Mission. Though India has a global market share of about 2.5 in technical textiles, the Government believes the domestic market can grow faster than 12% with a conscious plan to showcase its purposes, as visible in the outcome of the recent FICCI Technotex’23 which attracted more than 150 exhibitors and more than 250 buyers from more than 30 countries. Commerce and Industry Minister Piyush Goyal reckons the technical textile industry should be USD 100-125 billion strong by 2047 and can aim for USD 200 billion, in sync with the continued expansion of the global technical textile industry as well growth in domestic consumption and export. Stepping up efforts to tap the vast range of usage for technical textiles, the Government has asked startups and large corporations to consider expanding rapidly in the technical textiles field by exploring what new compounds, fabrics, composites and final products can be leveraged to capture the global market. According to Rajeev Saxena, Joint Secretary, Ministry of Textiles, amongst the 12 segments in technical textile, industrial textiles and medical textile have the largest market share with additionally, agrotech, building textiles and geotextile offering significant impact in strengthening the technical textile sector. Rapid progress in the infrastructure sector, especially in the PM Gati Shakti Scheme is creating a demand for geo-textile which is a geo-synthetic fabric used in construction projects, road and railway embankments, earth dikes and coastal In another major step towards making India a global hub for textile manufacturing and exports, the Government is setting up seven Integrated Textile Regions and Apparel (PM MITRA) Parks in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh Maharashtra. “This is the Government’s “effort to bring consolidation in the industry,” Commerce and Industry Minister Piyush Goyal had told the Sunday Guardian after the announcement of the locations in March 2023. “The scale helps you become more competitive both in India and internationally,” Goyal said. The seven PM MITRA parks will come up with a cost of Rs 4,045 crore and envisages investment of nearly Rs 70,000 crore, offering an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. A lot is also rising on the Production Linked Incentive (PLI) Scheme to promote production of MMF apparel, MMF fabrics and products of technical textiles in the country and enable the textiles Industry to achieve size and scale to become competitive. The scheme has generated a good amount of interest and is expected to bring in an estimated roughly Rs 10,000 crore in the technical textiles sector, according to Rachna Shah, Secretary, Ministry of Textiles. Of a total of 67 applications received so far, the Textile Ministry has selected 64 applicants. Investment to the tune of Rs 1536 crore approximately has been made by 56 applicants who have completed the mandatory criteria for formation of a new company and been issued approval letters. There is an opinion in industry that while the PLI for the apparel sector is helpful in reducing dependency on imported fabrics and increasing investment and employment, the requirement of minimum investment of Rs 100 crore-300 crore was very high. India’s readymade garment exports may see a compounded annual growth rate of 12-13% and surpass $30 billion by 2027, as per industry sources, but Chairman of Apparel Export Promotion Council Naren Goenka says capacity development in the apparel sector is the need of the hour.
Source: The sundayguardianlive.com
Export promotion councils to work on export targets for current fiscal year and chalk out a detailed road map to achieve that. According to exporters, issues related to the country's outbound shipments were discussed during a meeting chaired by Commerce and Industry Minister Piyush Goyal on April 24. India's goods and services exports together touched an all-time high of USD 770 billion last fiscal year.While merchandise exports touched USD 447 billion, services exports are estimated at about USD 322 billion. "The ministry has asked us to work on new exports target for this fiscal and explain ways to achieve," an exporter said. He said it was emphasised that states and Indian missions abroad be involved in achieving the new target. There was also a discussion on organising a major buyer-seller meet to showcase India's prowess in exports. Latin America and African countries hold huge potential to boost exports. Apparel Export Promotion Council Chairman Narendra Goenka, who participated in the April 24 meeting, said though there are global economic uncertainties, the sector is likely to grow by 5-10 per cent this fiscal. The country's merchandise exports are likely to cross USD 500 billion this fiscal due to healthy demand for domestic goods in key global markets, including the US, and benefits from trade pacts, according to exporters. "Together with goods and services, we are targeting exports of USD 900 billion this fiscal," FIEO Director General Ajay Sahai said. Free trade agreements with the UAE and Australia would provide a huge platform to boost exports in those markets. Ludhiana-based engineering exporter and Hand Tools Association President SC Ralhan said there are healthy signs of economic growth in the US, which accounts for about 18 per cent of India's total outbound shipments. Mumbai-based exporter and Chairman of TechnocraftIndustries Sharda Kumar Saraf too said that this fiscal would be better than last year for India's exports.
Source: Economic Times
India’s exports to the UAE are expected to rise by about 60 per cent to reach USD 50 billion by 2026-27 from USD 31.3 billion at present on the back of the free trade greement between the countries, a top government official said on Monday. Commerce Secretary Sunil Barthwal said that trade between India and the UAE has grown significantly after the implementation of the trade agreement on May 1 last year. “We are hoping that we will be able to reach USD 50 billion in exports by 2026-27. In the five years of trade after CEPA, I feel that we should be able to reach USD 50 billion in exports. I am very sure that the kind of response that we are hearing, we will definitely reach that,” Barthwal told reporters here.He said that a lot of trade is happening through the preferential route of the trade pact. “We would like traders of the two countries to take advantage of the CEPA,” the secretary added. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was signed between the two nations on 18 February 2022, officially came into force on May 1 last year. India’s exports to the UAE in 2022-23 rose by 11.8 per cent to USD 31.3 billion, while imports grew by 18.8 per cent to USD 53.2 billion in the last fiscal due to high inbound shipments of oil.Under the free trade agreement domestic exporters in various sectors like textiles, agriculture, dry fruits, gems and jewellery are getting duty-free access to the UAE market. Issuance of the number of preferential certificates of origin (CoO) has increased to 8,440 in March as against 415 in May 2022. A trader has to submit a ‘certificate of origin’ at the landing port of the importing country to claim duty concessions under free-trade agreements. This certificate is essential to prove where their goods come from.During May 22 – March 23, a total of 54,142 CoOs have been issued. The main export sectors which recorded healthy growth during 2022-23 included mineral fuels, electrical machinery and equipment, gems and jewellery, automobiles, essential oils, coffee, tea, spices, and chemicals. Exports of automobiles rose by 42 per cent to USD 715.58 million during 2022-23, electrical machinery shipments increased by 32 per cent to USD 3.65 billion. Gems and Jewellery exports rose by 17 per cent to USD 5.8 billion in the last fiscal. However, exports of iron and steel, and apparel recorded negative growth in exports. On the imports front, oil imports rose by 36 per cent to USD 27.7 billion in 2022-23. Similarly, imports of aircraft, spacecraft, and their parts jumped multi-fold to USD 1.9 billion in 2022-23 from USD about 39 million in 2021-22. Further Barthwal said that there is a joint trade committee which looks after the implementation of this trade pact and if any issue would come both sides would jointly resolve that. He added that the issue of gold was addressed by this committee. The CEPA agreement has been in force since May 1 last year. As per the agreement, India can import 110 tonnes at a concessional import duty of one per cent from the UAE The Directorate General of Foreign Trade (DGFT) invited applications for Tariff Rate Quota (TRQ) for 2023-24 with the last date being February 28, 2023.One of the reasons for the fall in gold imports from the UAE was less utilisation of the TRQ, but now “we have opened it for traders” also. The has notified a fresh window for the import of up to 140 MT of gold by manufacturers and traders of yellow metal from the UAE at a concessional rate under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Aqeel Panaruna, former chairman of the Council for Leather Exports said that the trade agreement is the “most effective which we have seen in recent times”. The bilateral trade between India and the UAE has increased by 16 per cent to USD 84.5 billion in 2022-23 from USD 72.9 billion in 2021-22. According to the commerce ministry, during the CEPA Implementation period (from May 2022 to March 20 23), bilateral trade increased from USD 67.5 billion (May 2021-Mar 2022) to USD 76.9 billion (May 2022-Mar 2023), an annual increase of 14 per cent. Similarly, India’s exports during May 2022 – May 2023 increased by 8.5 per cent to USD 28.5 billion.Under the trade pact between the two countries, the UAE liminated duties on 97.4 per cent of its tariff lines (or product categories) corresponding to 99 per cent of imports from India. “Given the significant increase in bilateral trade, particularly in exports of Indian goods and services, CEPA would have had a concomitant positive impact on other key macroeconomic variables such as GDP and Employment,” the ministry added.
Source: Financial express
Chief Minister MK Stalin on Saturday brought to the notice of Union Minister for Textiles Piyush Goyal the difficulties faced by the textile industry due to mandatory certification through different quality control orders (QCOs) by the Bureau of Indian Standards (BIS) for various types of man-made fibres and viscose fibre. In a letter, Stalin urged Goyal to insist on QCOs for importing viscose and polyester fibre only after the BIS disposes of all pending applications filed by importers seeking certification to comply with QCOs. The union minister should grant an exemption for filament yarn and artificial fibres, including bamboo which are not manufactured in India, from QCOs. He also said several applications from foreign suppliers are pending inspection and approval by BIS. This could be done only after BIS officials visit the production facilities of such applicants in their respective countries. Even if these suppliers conform to QCOs norms, importing such fibre could only be effected once BIS officials complete all the formalities and approve the applications.
Source: New Indian express
The epithet of ‘fastest-growing economy’ for India has been a confidence-booster, especially since the world economy is poised for a major slowdown in 2023, according to the International Monetary Fund (IMF). While the IMF forecasts 5.9% growth for India in FY2023 against RBI’s 6.5%, the number is still very impressive. Without going into the intrinsic quality of the growth rate of 7% or it’s thereabouts for 2022, it would be interesting to compare growth rates with other countries. Based on IMF data, what strikes us is that there are some smaller economies that are part of the group of emerging economies which also registered fairly impressive growth rates in 2022. Ireland, for example, is the fastest-growing country with 12% recorded for the year. It would not have been significant but for the fact that it was part of the infamous PIGS group which was responsible for the euro crisis in the early part of last decade. In fact, growth was very impressive even during 2020, the Covid year, at 6.2%. Quite clearly, being small has its advantages. The other three countries that are much smaller in size than India and had impressive growth rates in 2022 were Philippines (7.6%), Malaysia (8.7%) and Bangladesh (7.1%). A comparison with these nations may not be proper but should be recognised. Single-year comparisons can always be misleading as base effects play a major role. Such distortions began in 2020, when Covid ensured lockdowns of various des across several nations. This was the time when negative growth was the norm is most economies as economic activity had halted for a period of 2-4 months depending on the intensity of the disease there. It was coincidental that no country had an alternative solution to a lockdown, and this caused GDP to fall. Not surprisingly, as countries started to come out from the lockdowns, there was a tendency for the growth rates to get pushed up due to the negative base effect. Therefore, positive effects were felt across the board in 2021 and, further, in 2022. This added impetus to these smaller nations in 2022 In 2020, negative growth was the norm. Turkey, Taiwan, Bangladesh, China and Ireland were the only nations not to witness a fall in GDP as growth rates were positive. The UK witnessed a 11% de-growth as did Spain (11.3%). This helped bring about buoyant growth in 2021 (7.6% and 5.5%, respectively) as well as 2022. Growth in the UK was 4% and 5.5% in Spain in 2022. But the UK will draw little comfort from the same as it is expected to register negative growth in 2023 once again. Argentina witnessed 9.9% de-growth in 2020 and 10.4% and 5.2% in 2021 and 2022, respectively. Even in the case of US, growth fell by 2.8% in 2020 but recovered to 5.9% in 2021 before moderating to 2.1% in 2022. Therefore, the important conclusion is that growth rates over 2021 have a base effect—this has propped up growth numbers across countries. How does then one look at growth rates, given that base effects distort numbers in both directions? One way is to look at growth over a neutral year, say 2019. By calculating a compound growth rate for these nations a better picture emerges on the recovery process. Here the results are interesting as the growth now pertains to average annual for a period of three years. Ireland continues to be the best performer with 10.5% CAGR growth. This is followed by Turkey with 6.2%, Bangladesh 5.8%, Taiwan 4.1%, China 4.5% and India 3.1% (this will be slightly higher if 2022 is taken at 7% instead of 6.8% as per IMF). The Indian performance is still very impressive, given, other than China, the countries in the pool are much smaller to warrant comparison. India would rank third in terms of size going by PPP, with China being the largest. Turkey would be around 29% of India’s GDP and is the largest among the other nations which have witnessed higher growth rates. Taiwan is around 12% the size of India, Bangladesh 10% and Philippines 6%. Intuitively, it may be seen that with a smaller size of GDP it is easier to post higher growth rates, which is what has happened for the smaller nations. AGR for economic growth for three years is creditable, it will still take some time for India to clock the 8% growth rate that it requires on a sustained basis to create more jobs and ensure that poverty is under check. Job creation is important, given, the debated on whether poverty has come down or not notwithstanding, the fact that the government gave ‘free food’ under the Pradhan Mantri Garib Kalyan Yojana till March 2023 to over 800 million indicates that the number of needy requiring support from the government is high. This can only be addressed by creating more jobs. Hence, while the epithet of fastest-growing economy should be inspirational, there is still a lot of work to be done and should not lead to complacency. Growth of 6-6.5% in FY24 is achievable but will only be improving, albeit marginally, the status quo.
Source: Financial Express
India and Russia are looking at ways to deepen trade ties, with Moscow viewing the South Asian country as an alternative market for its products in the face of crippling Western sanctions, while New Delhi hopes to reduce a widening trade deficit. India’s imports from Russia increased five times to US$41.56 billion (S$55.6 billion) between April 2022 and February 2023 compared with the previous corresponding period, mainly due to oil imports, while its exports to the country have hit US$3 billion. Russia, unable to sell to the West due to sanctions over the Ukraine war, has been selling oil at discounted rates to India and China. Seeking to boost trade, a 50-member Indian business delegation from the agriculture and food processing sector went to Russia on a four-day visit from April 24 to look for opportunities there. “We are looking at animal feed, soya bean and ready-to-eat meals,” said Dr Ajay Sahai, directorgeneral and chief executive officer of the Federation of Indian Export Organisations. The delegation spent four days in Moscow and St Petersburg. Dr Sahai noted that the “huge trade deficit is a concern, but it is also an opportunity to push exports exponentially”. “We have to diversify exports to automobiles and auto components, electronics, medical devices, solar cells, textiles, food and agriculture, etc,” he said. In spite of its deepening ties with the United States and the West, India has continued to maintain close ties with Russia The two countries share deep defence ties, with 60 per cent of Indian weaponry being of Russian origin, necessitating India’s balancing act over the Ukraine war. At the United Nations, much to the West’s frustration, India has abstained from voting against Russia on many resolutions, but has urged Moscow to seek a peaceful resolution of differences and an end to the war in Ukraine. Still, foreign policy analysts said, challenges remain in pushing trade amid connectivity issues between the two countries. The two sides are in discussions to open a maritime corridor between the southern port city of Chennai and Vladivostok, a Pacific port city in Russia. The route, which has been in the works since 2019, will cut down the transit time for cargo by half to 20 days, in comparison with the current route that goes to Russia’s far east through Europe. India has also been looking at shipping goods through the International North-South Transport Corridor, a 7,200km network of railroads, highways and maritime routes connecting Russia and Iran to India. But experts said that will take time, amid gaps in connectivity and the threat of attracting Western sanctions when undertaking any project in Iran. “It’s not clear whether India-Russia trade, which is quite anaemic, can ride on the back of the current bump provided by the oil situation. An opportunity is certainly there because Russia is sanctioned by the West,” said Mr Manoj Joshi, distinguished fellow at the New Delhi-based Observer Research Foundation. “But in terms of manufacturing products, India will find it difficult to compete with China. Of course, officially directed trade can be an option, but that has its limits.” Exports have been going up, but far more modestly than imports. India’s exports to Russia, which include engineering goods, drugs and pharmaceuticals and chemicals, jumped to US$337.58 million in February 2023 from US$280 million in October 2022. For instance, Russia is already buying more agricultural commodities from India. Between February 2022 and February 2023, coffee exports went up from US$4 million to about US$7 million. But an arrangement to pay in rupees and roubles has not taken off amid multiple issues, including exchange rate differences. Reports said that this has likely impacted how India will pay for military spares and new equipment from Russia. Nevertheless, Russia has fresh motivation to deepen trade with India even as dependency on China is growing, said analysts. “Greater economic and political engagement with India is a big prize for Moscow. Not only may it eventually open a bigger energy market than Europe, but an enhanced relationship can provide a counterbalance to China and help Moscow from sliding into a subservient role with its eastern neighbour,” said Mr Chris Weafer, CEO of Macro-Advisory Limited, an independent strategic business consultancy in the Eurasia region. China-Russia trade hit a record US$190 billion in 2022, according to the Chinese General Administration of Customs. Mr Weafer said: “For India, access to discounted Russian oil, coal, and (eventually) gas plus fertilisers and other materials, helps create a more secure supply of critical industrial materials, which will help major parts of the Indian economy become more globally competitive and will increase and diversify exports. It will eventually help create more and better-paid jobs.”
Source: Straits times
Skills and technology are key factors in driving the success of Cambodian textile and apparel industry, according to the objectives of the government’s Industrial Transformation Map for Textile and Apparel Industry 2023-2027 (T&A ITM). The map is designed and formulated based on the evaluation of the global and Cambodian T&A sector and the government’s Cambodia Garment, Footwear and Travel Goods Sector Development Strategy 2022-2027. Talking about the textile and apparel sector, Minister of Economy and Finance Aun Pornmoniroth said in the report: “The Textile and apparel (T&A) industry has been one of Cambodia’s priority sectors and has contributed significantly to Cambodia’s socio-economic development. Since 1990s, this sector has been continuously transformed into a growth pillar based on political stability and peace, competitive wage and production cost, preferential trade access and favourable investment environment, all of which have been the industry’s competitive advantage. Overall, this industry has played a key role in Cambodia’s export and supported people’s livelihood of at least 2.5 to 3 million people who have benefitted from this industry.” As part of skill development, the government will promote the implementation of large-scale skilling to fill in the present and future skill gaps, build the capacity of human resources to use ICT technologies, and implement other key initiatives to improve the skills-development ecosystem in the textile and apparel industry. It suggested some key measures, including the development of a skills framework for the T&A industry. “A Skills Framework provides up-to-date information on employment, career pathways, occupations, job roles, existing and emerging skills, and competencies, as well as relevant education and training programs. It also provides a list of training programs for upskilling. The government will collaborate with the private sector in the textile and apparel industry to disseminate and communicate skills development framework to employees and workers, employers, higher education institutions, technical and vocational training institutions, and factories,” it noted. The study also called for the development of national digital and online learning apps and platforms for the sector. It pointed out that Cambodia has one of the highest penetrations of mobile phones in the world and the share of smartphones among mobile phone users is significantly high. Mobile learning can be an effective way to bring education to individuals, it said, adding that standard curriculums with a full suite of training materials, preferably bite-size and stackable may be made available through mobile apps. The government in collaboration with the private sector looks to promote the development of standard curriculums on the elearning platform and mobile apps for the masses to learn and upskill in the T&A industry. “Programs available on the portal will include, but are not limited to, basic literacy for Khmer and common business foreign languages, workplace numeracy, and STEM,” the report indicated. It also noted that the promotion of experiential learning modules and internships of three to six months is an integral part of education and skilling especially for diploma and degree qualifications. The government encourages the private sector to provide support through a stipend to the trainees during the internship period. Meanwhile, the government will provide incentives to the trainees and companies post-completion of the course and placement. Cambodia will also collaborate with the private sector to establish a strong network in order to communicate the skills in demand across the market. Employers have to involve in each phase of skilling – from conceptualisation to implementation. Another significant area is the enhancement of job portals, it indicated. “With the development of ITC such as big data and artificial intelligence, job websites such as WorkNet, CamHR, Job Cambodia, etc. are an effective way to recruit and find jobs through the improvement of the awareness level among the potential employers and trainees/job seekers. “In this regard, the TAFTAC and other relevant institutions in the T&A industry will increase the dissemination of the abovementioned job websites and how to use them to students, workers and employers throughout the education and training curriculum and job fairs,” it noted.
Source: The khmertimeskh.com
The government is weighing the option of relaxing eligibility norms for the Production Linked Incentive (PLI) scheme for textiles to enable more players to qualify for benefits and ensure fuller utilisation of the allocated funds for incentivising manufacturing in the country, according to sources. “The mandatory requirement for applicants to form a new company to qualify for benefits may be reconsidered, both for the existing PLI scheme for textiles and the proposed second edition under discussions, as it has proved to be an irritant for some investors,” a source tracking the matter told businessline. Investors may be given options such as putting up a separate production facility, including a separate building with new plant and machinery, within the complex of an existing company, for producing items under the PLI scheme. These options are being discussed, the source added. “Allowing such an arrangement will take care of applicant’s concern of spending more time, money and effort in registering a new company. At the same time, the production facility will be new, which will be put up with new investments flowing into the PLI scheme,” the source said. Additionally, in the second edition of the PLI scheme, flexibilities are also being considered in the form of reduced threshold limits for investments and turnover and extension of benefits to clothing made of all fabrics including cotton. Also listen: How can India leverage its textile industry to boost export? Proposed investment The notification for the existing PLI scheme, with a corpus of ₹10,683 crore and focus on manmade fiber and technical textiles, was issued on September 24, 2021. So far, 64 applications, with a proposed investment of ₹19,798 crore and projected turnover of ₹ 1,93,926 crore, have been approved. Letters of approval have been sent to 56 selected participants after fulfilling the mandatory requirement of creation of new company. “The investments to be brought in by the approved applicants and their estimated turnover will not be enough for the utilisation of the entire ₹10,683 crore allocated for incentives.That is why a need has been felt for a second edition of the scheme with lower thresholds, and a wider product base, to allow smaller players to come in, ” the source said. So far, disbursals have been low, at ₹2,875 crore, under the government’s ₹1.97 lakh crore PLI scheme for fourteen sectors announced in 2020. Only eight sectors have received incentive disbursals, the largest share going to electronics manufacturing, with six sectors, including textiles, yet to open
Source: The Hindu business line
According to K. Selvaraju, secretary general of the Southern India Mills’ Association, indicative data of yarn prices available show that hosiery yarn that was selling at ₹381 a kg in October last year is ₹331 a kg now and price for warp variety that was ₹303 a kg in October is ₹270 a kg at present. The weaving units were doing well even a few days ago. But, the demand fell in the last one-and-a-half months. Though the spinning mills are running at nearly 90% capacity and cotton prices are stable, the demand for yarn is tepid. For the small-scale spinning mills, high power costs, high cotton costs and dull market have hit operations. “We are unable to trigger demand in the market,” said a small-scale textile mill owner. Open end Spinning Mills’ Association president G. Arulmozhi says yarn demand has seen slight improvement. But prices are a problem. With textile mills slowing down for the last few months, the open end spinners are unable to get waste cotton and hence, comber noil prices are higher than last year. Production cost has gone up by ₹7 a kg in the last 12 months because of higher labour and power costs and raw material cost is also high. But, yarn prices improved only by ₹10- ₹15 a kg in one year. Nishant Asher, secretary of Indian Cotton Federation, added that Indian cotton prices were hovering between ₹61,000 and ₹62,000 a candy and though it was lower than last year price levels, it was higher than the present international prices. This had made Indian yarn uncompetitive in the international market and buyers were gravitating towards countries such as Vietnam.
Source: The hindu.com
INTERNATIONAL
Equipping Bangladesh to face the challenges of graduation from the leastdeveloped country bracket is the main agenda for the World Bank Group as it embarks on its next years of partnership. The plan has been outlined in the multilateral lender's country partnership framework for -, which will be presented before Prime Minister Sheikh Hasina today at a daylong event at the WB headquarters in Washington DC to celebrate years of partnership with Bangladesh. "The relationship had its ups and downs but the WB stuck to its mandate of being a partner in development, " said Zahid Hussain, a former lead economist of the WB's Dhaka office. The trough in the relationship came in June , when the WB pulled out its $. billion funding to build the Padma bridge after it found "credible evidence corroborated by a variety of sources" that pointed to a high-level corruption conspiracy among Bangladeshi government officials, SNC Lavalin executives and private individuals in connection with the project. "The frostiness lasted very briefly. The incident did not have a lasting effect on the WB's lending to Bangladesh, " he said. Two years after the Padma bridge incident, Bangladesh became the largest recipient of loans from the International Development Association, the WB arm that provides concessionary loans to the world's poorest nations, according to Hussain. "Going forward, it has now become clear how the WB will extend its assistance. The CPF's main focus would be increasing private sector competitiveness for post-LDC graduation, adaptation to climate change and mitigation, and inclusive growth, " he added. The CPF will support Bangladesh's goal to achieve upper-middle-income country status by by helping the country address key barriers to higher and sustainable growth, said Abdoulaye Seck, the WB's country director. The annual allocation from IDA is expected to be within the $.- billion per annum range. "Together with a current balance of about $. billion to be disbursed under the existing projects, this offers an opportunity for a series of transformational projects across key sectors." Some of the transformational projects earmarked include the development of an economic corridor centring on Jamuna River, restoration of the ecology of Dhaka rivers, Bay Terminal project, modernisation of public sector operation, and learning acceleration in secondary education. At the same time, the International Finance Corporation, the WB arm that helps develop the private sector in developing countries, will strive to increase its investment programme to $ million per annum, including mobilisation. The Multilateral Investment Guarantee Agency, the WB arm that promotes investment in developing countries by offering political and economic risk insurance, will continue to support its existing portfolio of $. billion in gross outstanding exposure across the energy and manufacturing sectors. In collaboration with the IFC, MIGA will seek to support foreign direct investment into the country through its guarantee instruments as well as find opportunities to use its trade finance support instruments.
Source: The tribune.com
Publicly listed firms repatriated NT$114.4 billion (US$3.72 billion) of investment gains from China last year, a 175.7 percent surge from NT$41.5 billion in 2021 and the most since 2013, data released last month by the Financial Supervisory Commission showed. That came as listed firms posted a combined profit of NT$454.1 billion from their Chinese investments last year, a NT$98.2 billion decrease from 2021, but still the second-highest total over the past decade, driven mainly by the semiconductor and electronic components sectors. Previously, listed firms rarely repatriated their investment gains from China, as Beijing imposes strict foreignexchange controls to curb capital outflows. Taiwanese firms also tend to keep most of their profits in China for further investments. However, this has changed in the past few years as they have been scaling back new investments in the world’s second-largest economy amid US-China trade disputes as well as escalating tensions across the Taiwan Strait. There are three main reasons for Taiwanese listed firms to repatriate their investment gains. The first is to meet funding needs and business planning. Firms remit their investment income and proceeds from share sales to their parent companies to bolster working capital and align with their business groups’ capital planning strategy. Second, the fund repatriations were in response to firms’ deployment strategies, as more Taiwanese businesses shifted their investment targets to the US or countries covered by the government’s New Southbound Policy, introduced in 2016 and aimed at boosting interactions with ASEAN and South Asian nations, as well as Australia and New Zealand. Third, China’s economic outlook has become more worrying for Taiwanese businesses, and nervousness over geopolitics has limited their investments there. For example, there are growing concerns over the transparency and accuracy of China’s economic data, making it harder for businesses to make investment plans. The Chinese National Bureau of Statistics last week reported that profits at industrial firms continued to plunge in the first three months of the year, down 21.4 percent year-on-year, even though the same agency just 10 days earlier reported that China’s first-quarter GDP expanded 4.5 percent annually, which was the fastest in the past year. In other words, demand for China’s goods is still weak, despite a rebound in overall economic growth that has been driven largely by the services sector following the end of strict COVID-19 restrictions at the end of last year. As the recovery in China’s economy is still patchy and the strength of its rebound is closely linked to the global trade environment, it is not surprising that listed firms repatriated about one-quarter of their profits made in China last year. The latest data also showed that businesses remain wary of China’s investment environment and firms have started to evaluate the ramifications of geopolitical risks, despite messages from senior government officials that China welcomes foreign investment. On one hand, US-China trade tensions have continued to escalate, with the dispute shifting from trade to investment and technology. In March, Beijing launched a cybersecurity review of US chipmaker Micron Technology, a move that followed Washington’s efforts to contain China’s access to strategic semiconductor technologies. On the other hand, relations between Taiwan and China have become even tenser in the past few years, with little room for any breakthrough in the short term as some people have suggested. Just two weeks ago, China launched an investigation into so-called trade barriers that Taiwan has imposed on more than 2,400 Chinese imports spanning from agricultural products and textiles to minerals and petrochemicals. The changes were similar to many of those Beijing has imposed on Taiwanese goods over the years, which suggests the unpredictability of China as an export market.
Source: The taipeitimes.com
Pakistan’s readmission for the Generalised Scheme of Preferences Plus (GSP+) benefits post-2023 is being seen as a failed incentive to a country which neither has maintained the European Union’s values nor reciprocated in economic cooperation proportionately, reported Geo-Politik The EU is looser both in terms of revenue as well as its values and standards. Pakistan has failed the main purpose of the GSP+, which was granted in 2014, not only with regard to human and labour rights but also in bringing equity in society at the cost of EU citizens and the government, according to Geo-Politik. The ruling elite in Pakistan has used the benefit of GSP+ for their own personal things, as proved by a European Institute for Asian Studies (EIAS) report. Earlier, in 2014, the European Union granted the GSP+ to Pakistan, allowing duty-free access for most of its goods in the bloc. Pakistan exporters immensely benefited with about two-thirds of tariff lines cut while entering the EU market. However, in return for foregoing import duty, the EU anticipated that Islamabad would enact laws and policies to improve its compliance with the globally accepted standards of corporate and social behaviour. Mostly these include improving human rights situation, labour standards, women’s working conditions, and environmental protection, comprising 27 UN conventions, GeoPolitik reported. Pakistan’s exports to the EU under the GSP+ scheme increased substantially to EUR 6.64 billion in 2021 from EUR 3.56 billion in 2013, mostly consisting of textile, leather, sports and surgical goods sectors. In addition to achieving higher exports, the GSP+ mandate helped the Pakistani business community to have exposure to the UN standards of manufacturing and living including human, labour, women’s rights and other standards. However, notwithstanding export benefits, the Pakistan government’s response to improve its performance across socio-political metrics as per GSP+ stipulation has been slow and inadequate so far. Though Pakistan benefited from the EU’s GSP+, the quality of life of workers, safety and dignity of workspace, most especially for the ever-increasing women participants has not improved. The pathetic situation continues despite several warnings by the international community. Violation of these rights in Pakistan on a daily basis is a story which has yet to be told and appreciated by the West, as per the report in Geo-Politik. Besides, violations of human, women and labour rights, forced abduction, freedom of media persons, NGOs and blasphemy are still matters of daily routine in Pakistan. The poor workers are compelled to live with their fate. They neither get minimum wages nor dignity.
Source: The print.in
Trade union leaders from the textile and garment sector in Bangladesh, Cambodia, Myanmar and Tunisia called for mandatory due diligence legislation and Europe's support to prevent Rana Plazalike tragedies in future. hey made the call at a meeting with members of the European Parliament (MEPs) on Thursday. Accompanied by IndustriALL Global Union and IndustriALL Europe, Bangladesh Sammilita Garment Sramik Federation president Nazma Akter, Cambodian Apparel Workers' Democratic Union president Athit Kong, Tunisian Textile, Clothing, Shoes and Leather Federation general secretary Habib Hazami, and Industrial Workers Federation of Myanmar president Khaing Zar Aung attended the meeting. MEPs Heidi Hautala and Agnes Jongerius hosted the meeting in the European Parliament. The meeting in Brussels was part of a European advocacy tour calling for mandatory due diligence in the sector and the need for safe factories, which also took the union leaders to the ILO in Geneva, a conference hosted by the German Federal Ministry for Economic Cooperation and Development in Berlin Kong said workers and their unions in garment-producing countries were looking to the EU to pass strong mandatory due diligence legislation with access to effective remedies. Trade relations could be used to improve the situation of workers in production countries, he added. The union leaders came with three key demands that rely on European action and support. The demands included mandatory due diligence legislation that includes access to legal redress, European companies to offer living wages throughout their global supply chains and more brands to join the International Accord to improve workplace safety for garment workers, according to the statement. According to Aung, the EU's MADE in Myanmar project, while well intentioned to promote decent work, legitimizes the military and provides a front for workers' rights violations and that income from the project helps fund the military. The EU must end it. The Accord has made a huge difference to garment workers in Bangladesh by improving building and fire safety, but health and safety efforts must now also focus on occupational diseases, Nazma stressed. She reiterated the need for all brands sourcing from Bangladesh to Habib Hazami, IndustriALL Global co-chair of the textile and garment sector, also stressed the importance of the Accord and the need to extend it to the MENA region. IndustriALL Global Union director Christina Hajagos-Clausen said: "Trade union voices from the production countries need to be heard and taken into account when it comes to the debate around why mandatory due diligence is needed." IndustriALL Europe deputy general secretary Judith Kirton-Darling said: "It's depressing that despite undeniable progress, we still hear harrowing stories of unsafe and precarious working conditions, poverty wages, child labour and forced labour. Europe certainly has a role to play."
Source: The dhakatribune.in
It may be cliché but, indeed, 2023 began with a bang—especially for the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector. It wasn’t long before organizers of conventions, graduations, oath-taking ceremonies, concerts, religious gatherings, and various meetings started calling up the Philippine International Convention Center for a return to the face-to-face events we all missed the past few years. These events are all the more meaningful this 2023 as the world emerges full of life and healing with new stories to tell, and new experiences to embrace. The PICC has been preparing for a new series of exciting events as it keeps its lead as THE venue of choice. Fresh from its official public declaration as National Cultural Treasure in 2022, the PICC welcomed the year with high-profile government events such as the NEDA Philippine Development Plan (PDP) 2023-2028 Forum and the BIR Tax Campaign Kick-off. Musical performances reigned during the love month with concerts headlined by the APO‘s Jim Paredes and Boboy Garrovillo, and the Philippine Madrigal Singers. February and March pushed the creative industries' agenda as the Department of Trade Industry gathered stakeholders, policymakers, creative entrepreneurs, and government champions local and international at the Creative Industries Summit, while the weeklong Likha exhibit gathered 57 weavers from all over the country who showcased more than 30 weaves and surface decorations on textile. Scientists, researchers, and physicians convened at the PICC during the first quarter for the Indie-Sciyencya Awarding Ceremonies and the 2023 Annual Scientific Conference and 90th General Membership Assembly of the National Research Council of the Philippines and the 62nd Annual Convention of the Philippine Academy of Family Physicians. The confidence to travel and relaxed health protocols are bringing about the holding of the annual conventions of local professional associations such as the Philippine Academy of Family Physicians (PAFP), Philippine College of Physicians (PCP), Philippine Pediatric Society (PPS) and Philippine Obstetrical and Gynecological Society (POGS), Philippine Society for Microbiology and Infectious Diseases (PSMID) and United Architects of the Phils. (UAP). International conferences and meetings of prestigious organizations are slated in 2023 as well. From fan meets of Korean superstars such as B.I. (March) and Lee Jong Suk(April), to festivals, concerts, trade fairs, and exhibitions, the PICC has something for everyone. It is emerging as versatile and category-defying, and where the local merges with top caliber events with an international audience. PICC General Manager Renato B. Padilla expressed his optimism for the continued influx of events at the Center. He says, “While we have seen the value of virtual and hybrid events during the pandemic, the return of face-to-face events signifies that people are eager to come together to connect, collaborate, and celebrate. The PICC is delighted to host our clients once again.” Indeed, for all these premier events, and the people that celebrate them, the setting is everything.
Source: The mb.com
