INTERNATIONAL
NATIONAL
Birla Cellulose, a unit of Grasim Industries Limited and part of the Aditya Birla Group has unveiled its latest innovation, Birla SaFR, at ITMA 2023, Milan, Italy. Birla SaFR, is a phosphate based inherently flame-retardant sustainable cellulosic fibres, ideal for making flame retardant fabrics with its exceptional performance and eco-friendly characteristics. Minister of State for Textiles Darshana Vikram Jardosh launched this product in the presence of Secretary (Textiles), Rachna Shah, H.K Agarwal, MD Grasim Industries Ltd., and ManMohan Singh, Chief Marketing Officer, Birla Cellulose. In a statement the company informed that crafted with utmost precision, Birla SaFR results from meticulous research and development efforts combined with a deep understanding of industry demands. This remarkable achievement showcases Birla Cellulose’s commitment to fostering innovation and delivering products that revolutionise the textile landscape. Birla SaFR, can be blended with other high-performance fibres (e.g aramid, FR mod acrylic, FR polyester) to create a diverse range of protective clothing solutions. This cutting-edge fibre offers enhanced protection against a multitude of heat-related hazards while ensuring optimum comfort for the wearer without compromising on the fire protection standard of the garment thus enhancing the user experience. H.K Agarwal, who is also business director, Pulp and Fibre Business, said “Birla SaFR is the first flame retardant fibre developed in India specifically for the technical textile segment. We take immense pride in knowing that our product will be used in various categories of protective wear, ultimately safeguarding lives.” Birla SaFR will be an ideal choice for industries requiring highest standard against fire protection, such as thermal protection, electric arc protection, and molten metal splash protection catering to the unique needs of sectors such as defense, emergency response (ER), oil and gas, electrical utility companies and for various manufacturing industries. Birla SaFR has the Oxygen Limiting Factor (OLF) > 28 and it sustains the flame retardant efficacy post multiple washes (> 50 washes) as tested and verified by 3rd party agencies.
Source: Apparel Resources
India will review its production-linked incentive (PLI) scheme at the end of this month to improve utilisation in sectors that are lagging behind, a trade ministry official said on Tuesday. The PLI scheme, which is Prime Minister Narendra Modi's main industrial policy to boost manufacturing, has so far announced incentives for 14 sectors. The review will focus on six sectors, including steel and textiles, where the scheme has not been effective, the official, who did not want to be named, told reporters. The official said the review will help in better utilisation of funds over the next 2-3 years. Another official said the government had no plans to include chip manufacturing in the PLI scheme, but that talks were in "reasonably advanced stages" to bring toys, footwear and new-age bikes under the fold. The PLI scheme has drawn investments totaling 535 billion rupees ($6.54 billion) until December 2022.
Source: Economic times
The Production Linked Incentive (PLI) Schemes have led to a significant increase in production, employment generation, economic growth and exports in the country. Addressing a press conference in New Delhi today, Shri Rajesh Kumar Singh, Secretary, DPIIT said that due to PLI Schemes, there was a significant increase of 76% in FDI in the Manufacturing sector in FY 2021-22 (USD 21.34 billion) compared to previous FY 2020-21 (USD 12.09 billion). The PLI schemes as envisioned by the Prime Minister, Shri Narendra Modi with the objective of making India 'AatmaNirbhar' is built on the foundation of 14 sectors with an incentive outlay of Rs. 1.97 lakh crore (about US$ 26 billion) to strengthen their production capabilities and help create global champions. Sectors for which PLI schemes exist and have seen an increase in FDI inflows from FY 2021-22 to FY 2022-23 are Drugs and Pharmaceuticals (+46%), Food Processing Industries (+26%) and Medical Appliances (+91%). PLI Schemes have transformed India’s exports basket from traditional https://pib.gov.in/PressReleasePage.aspx?PRID=1932051 2/3 commodities to high value- added products such as electronics & telecommunication goods, processed food products etc. As on date, 733 applications have been approved in 14 Sectors with expected investment of Rs.3.65 Lakh Crore. 176 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles & Drones. Actual investment of Rs. 62,500 Crore has been realized till March 2023 which has resulted in incremental production/ sales over Rs. 6.75 Lakh Crore and employment generation of around 3,25,000. Exports boosted by Rs 2.56 Lakh Crore till FY 2022-23. Incentive amount of around Rs. 2,900 Crore disbursed in FY 2022-23 under PLI Schemes for 8 Sectors viz. Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing and Drones & Drone Components. PLI Scheme has led to major smartphone companies shifting its suppliers to India, e.g., Foxconn, Wistron and Pegatron. As a result, top high-end phones are being manufactured in India. It has also resulted in a 20-fold increase in women employment and localization in IT Hardware such as Battery & Laptops. Secretary, DPIIT said that the value addition in mobile manufacturing in India is to the tune of 20%. “We have been able to increase the value addition in mobile manufacturing to 20% within a period of 3 years whereas countries like Vietnam achieved 18% value addition over 15 years and China achieved 49% value addition in over 25 years. Seen in this perspective, it is a big achievement”, Shri Rajesh Kumar Singh added. PLI Scheme for LSEM along with existing Phased Manufacturing Program (PMP) has led to increased value addition in the electronics sector and in smartphone manufacturing, 23% and 20% respectively, from negligible in 2014-15. Of the USD 101 Billion total electronics production in FY 2022-23, smartphones constitute USD 44 Billion including USD 11.1 Billion as exports. Import substitution of 60% has been achieved in the Telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment). Drones sector has seen a 7 times jump in turnover due to the PLI Scheme which consists of all MSME Startups. Under the PLI Scheme for Food Processing, sourcing of raw materials from India has seen significant increase which has positively impacted income of Indian farmers and MSMEs. Due to the PLI Scheme, there has been a significant reduction in imports of raw materials in the Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G, and transfer of technology has happened in manufacturing of Medical Devices such as (CT scan, MRI etc.).
Source: PIB
The production-linked incentive (PLI) scheme, launched by the government to push its Make in India objective, has approved 733 applications from manufacturers across 14 sectors as on date including 176 MSME beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones, informed Rajesh Kumar Singh, Secretary, DPIIT at an event on Tuesday. Till December-end 2022, the MSME beneficiary count was more than 100, according to the Economic Survey for 2022-23 earlier this year. “Particularly the drones sector has seen seven times jump in turnover due to the PLI Scheme which consists of all MSME Startups while under the PLI Scheme for food processing, sourcing of raw materials from India has seen a significant increase which has positively impacted income of Indian farmers and MSMEs,” Commerce Ministry said in a statement on the event. The PLI schemes were introduced to enable India’s self-reliance in manufacturing by focusing on 14 sectors with an incentive outlay of around $26 billion. Singh noted that due to PLI schemes, there was a significant increase of 76 per cent in FDI in the manufacturing sector amounting to $21.34 billion in FY22 compared to $12.09 billion in FY21. Among sectors under PLI schemes, which saw growth in FDI inflows from FY22 to FY23 were drugs and pharmaceuticals with over 46 per cent growth, food processing industries with more than 26 per cent growth and medical appliances with over 91 per cent growth. Out of the expected investment of Rs 3.65 lakh crore across 733 applications, actual investment of Rs 62,500 crore was realized till March 2023, resulting in incremental production or sales worth more than Rs 6.75 Lakh crore and employment generation of around 3.25 lakh, the ministry said. Commerce Minister Piyush Goyal at an event in October 2022 had noted MSMEs to be the real beneficiaries of the PLI scheme because when a large industry comes up, it brings the whole ecosystem of manufacturers and service providers along with it. “The mainstay of India is MSMEs and the mainstay of MSMEs is large industry which aggregates what our MSMEs are doing and provides them with more opportunities,” the minister had said.
Source: Financial Express
Concerned departments where the production-linked incentive scheme is not picking up may consider some course correction in the plan, a top government official said on Tuesday. Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said the concerned ministries have to see if PLI disbursement is low or if firms are not able to meet their performance thresholds, in such cases, sometime relaxations may be required like the way it has been done for the IT sector. Last month, the government announced the PLI 2.0 for IT Hardware with a budgetary outlay of Rs 17,000 crore. "We are hopeful of utilising Rs 1.97 lakh crore for the scheme...but in an individual scheme, there may be some course correction," Singh told reporters here. The government has announced the PLI (production-linked incentive) scheme for as many as 14 sectors, such as telecommunication, white goods, textiles and pharma with an outlay of Rs 1.97 lakh crore. The government has disbursed only Rs 2,900 crore till March 2023, out of Rs 3,400 crore claims received. When asked about the reason for low disbursals, Additional Secretary in the DPIIT Rajeev Singh Thakur said that the next two years would be crucial. "In eight sectors, we are disbursing the incentives and in the remaining six, we are hopeful (to start the disbursements). This year and next year, we will be on track," Thakur said. On this, the secretary added that they are "not too" concerned about the lag in the incentives as investments are happening. "We expect the disbursement to pick up...Projects are on the ground, and investments and employment are happening. The disbursement will follow...But yes, there is a lag," the secretary said. The eight sectors where PLI performance is healthy include large-scale electronics manufacturing, pharma, food processing, telecom, white goods, auto and auto components. Sectors which are not picking up well include high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products and speciality steel. Further, the secretary said that proposals for extending fiscal benefits under the production-linked incentive (PLI) scheme for toys, leather and footwear and components for new-age bicycles are in advanced stages. "Few of them are in the advanced stages like toy, leather and footwear, components for new age bicycles," he told reporters here. In these 14 sectors, the government has received 733 applications as of March this year. In these sectors, 3.25 lakh jobs have been generated and goods worth Rs 2.6 lakh crore have been exported till 2022-23. He also pointed out that Apple and its vendors are coming to India and "we want to follow" the success of this sector in other segments also. Thakur said that in electronics and mobile manufacturing, value addition has been increased to 23 per cent and 20 per cent, respectively. It was negligible in 2014-15. In China, the value addition is about 49 per cent and 18 per cent in Vietnam. According to the department, mobile phones export from India has increased to Rs 90,000 crore during April-December 2022-23 against Rs 45,000 crore in 2021-22. Out of the total mobile phone exports during 2022-23, 82 per cent were by the PLI companies. iPhone 14 exports from India would touch USD 10 billion in 2024-25, according to a presentation by the department. The additional secretary also informed that the government is getting a good amount as tax due to these investments. "Our guess is that", the government would have collected about Rs 5 lakh crore as taxes and duties, Thakur said.
Source: Economic times
The banking sector is on course to report the best asset quality in over a decade this fiscal, with headline gross NPAs and net NPAs falling to 2.63 per cent and 0.83 per cent, respectively, in March 2023, according to Moody's and its arm Icra Ratings. At the same time, the likely gross fresh NPA generation at 2 per cent will be the lowest since fiscal 2012, the agencies told reporters here Tuesday. They also said the strong domestic demand, improving credit conditions of borrowers and strengthened solvency and funding will support further improvement in the credit quality of banks and non-banking financial institutions in spite of the challenging environment for banks globally. The report expects the healthy profitability trend to continue, primarily driven by strong loan growth, which it sees to moderate to 11-11.7 per cent this fiscal from 15.5 per cent in fiscal 2023 and a favourable credit environment. The trend of improving asset quality will continue with headline gross nonperforming advances and net bad loans declining to their best level in over a decade, at 2.63 per cent and 0.83 per cent this fiscal from 3.96 per cent and 0.97 per cent, respectively, in fiscal 2023. At the same time, the gross fresh NPA generation rate of 2 per cent will be the lowest level since fiscal 2012, Alka Anbarasu, an associate managing director at Moody's and Karthik Srinivasan, a senior vice-president at Icra, told reporters. While the year-on-year credit growth is likely to moderate with higher interest rates, the incremental credit growth is expected to be Rs 15-16 lakh crore, which is poised to become the banking sector's second-highest increase on record, they said. Explaining the rationale for their optimism, they said credit conditions have gradually improved, with a significant reduction in the banks' stock of legacy NPA over the past three years. On the other hand, corporates' financial health has also improved following a decade of deleveraging. And stress among nonbank financial institutions has also abated. "While banks globally are facing liquidity pressures amid tighter monetary policy, outflows of excess liquidity built up during the pandemic into more profitable investments and increased risk aversion among investors because of stress in the US banking sector, domestic banks, on the other hand, have strong funding franchises and ample liquidity to support growth in their loans in line with strong economic conditions," said Anbarasu. Another enabler is the recapitalisation of banks following capital raisings from the equity market as well as capital infusions from the government for public sector banks. She expects the average return on tangible assets for banks to hold steady at 1-1.2 per cent over the next two years, which will support asset growth of around 15 per cent while keeping capital at current levels. With deleveraged balance sheets, corporates' asset quality remains strong, which, coupled with the stable performance of the retail asset quality, will help to reduce fresh slippages in the asset quality of banks, said Srinivasan. They also see the credit cost to moderate with rising asset quality, which in turn will translate to a steady return on assets and return on equity for banks at 1.1 per cent and 13.1 per cent, respectively, in the current fiscal. On the other hand, private sector banks will continue to have higher RoA and RoE at 1.6 per cent and 14 per cent, respectively, in fiscal 2024. Public banks will report their best RoE since fiscal 2013 at 13.4 per cent, inching closer to that of the private banks. When it comes to India Inc, the agencies expect the credit quality to remain strong on the back of relatively higher economic growth, supportive government policies and investments in large infrastructure projects. The report also expects private and government capex to surge amid the large size of new projects, improving capacity utilization levels, production-linked incentive (PLI) schemes and government initiatives toward clean energy. While higher inflation will cause profitability to weaken, especially for sectors that are not able to pass on the increased cost, relatively strong economic growth will limit the earnings decline for corporates. This, combined with debt reduction over the past two-three years will keep credit metrics relatively well-positioned for their respective ratings, said Vikash Halan, an associate managing director at Moody's.
Source: Economic times
Gujarat witnessed a significant decline in export orders across key manufacturing sectors, leading to a failure in meeting the export credit targets set by banks under the Service Area Credit Plan (SACP) for the fiscal year 2022-23. According to the State Level Bankers’ Committee (SLBC) Gujarat report, export credit targets were achieved at a mere 11% of the intended amount during FY 2023. Out of the targeted Rs 2,356 crore, only Rs 272 crore was disbursed throughout the year. In terms of the number of accounts, the achievement in disbursals was less than 1%, with only 112 accounts receiving funds against the targeted 23,810 accounts. The decline in exports within sectors such as gems and jewellery, textiles, chemicals, and engineering goods is believed to be the primary reason behind this underperformance. Pathik Patwari, president of the Gujarat Chamber of Commerce & Industry (GCCI), explains, “The lack of demand is a significant concern across sectors, especially in key markets like the US and Europe. With reduced orders and export volumes, the demand for export credit has significantly decreased.” Industrialists also pointed out that banks’ lengthy processing time for letters of credit related to export orders has contributed to the decline in export credit. Additionally, banks’ reluctance to provide credit for exports to certain countries has impacted the situation. “Bangladesh and Lanka, crucial export markets for Indian textile players, are major garment manufacturing hubs for Europe and US. However, due to low demand from Europe and the US, raw material imports from India to the two markets declined significantly. Moreover, both the countries are experiencing economic upheaval. The financial instability in these countries has made banks cautious about extending credit for exports,” adds Patwari. Several key manufacturing sectors, including dyes, intermediates and chemicals, leather, Active Pharmaceutical Ingredients (APIs), engineering, and plastics, have witnessed a drop in exports. The combination of these factors has posed challenges for achieving the export credit targets in Gujarat.
Source: Times of India
Africa, the second largest continent, is vast and divided by the Sahara desert into North Africa and sub-Saharan Africa. North Africa borders the Mediterranean Sea and stretches from the Atlantic Ocean in the west to the Red Sea coast and Suez Canal in the east. This region, known as the Maghreb, is rich in oil and gas reserves and is part of the Arab world. It has a historical legacy of great Islamic empires in Tunisia and Egypt, which still showcase their glory today.On the other hand, sub-Saharan Africa presents a different picture. It consists of forty-six independent countries with diverse cultures, tribal traditions, languages, economic conditions, geographical features, and societal structures. These countries possess significant wealth, including various precious minerals, oil, gas, and fertile agricultural lands capable of producing enough food for their own populations and others. Unfortunately, this wealth has been a “curse” for Africa. Due to the lack of knowledge among the local populations, European colonial powers divided the resources of sub-Saharan Africa among themselves in the Berlin Conference of 1884-1885. Within a short span of two decades, almost 90% of sub-Saharan Africa was colonized by these powers, leading to ruthless exploitation of African resources, immense human suffering, poverty, and loss of millions of lives. This practice persisted well beyond the Second World War.In response to the independence movements across sub-Saharan Africa, the African Union (AU) was established in 2002 with the aim of fostering socio-economic integration and ensuring peace and stability among its fifty-five member states. The Division of Economic Policy and Research (EPR) was established at the AU headquarters in Addis Ababa to support member countries in formulating appropriate economic policies and achieving sustainable and inclusive development. Recognizing the challenges faced by the AU in achieving its objectives due to the sheer number of member countries, various Regional Economic Communities (RECs) were formed over time. In sub-Saharan Africa, the AU recognized RECs include the Intergovernmental Authority on Development (IGAD), Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), Economic Community of West African States (ECOWAS), Community of Sahel-Saharan States (CEN-SAD), Economic Community of Central African States (ECCAS), and Southern African Development Community (SADC). There are several other sub-regional economic communities as well. The REC member countries in sub-Saharan Africa are currently working towards economic integration by removing trade barriers, implementing unified customs duties, and facilitating the free movement of goods and services across borders. With varying degrees of progress in these areas, the AU launched the African Continental Free Trade Area (AfCFTA) in 2019, which is the world’s largest free trade area headquartered in Accra, Ghana. As of 2021, AfCFTA has become operational. Although member states face challenges related to adopting a single currency, this issue is expected to be resolved as the process continues over the next decade.Throughout history, persons of Indian origin, collectively referred to as Indians, have been living in sub-Saharan African countries for centuries. Despite facing numerous challenges, such as encounters with cannibalistic African tribes, these individuals have never ceased their business activities. Initially starting as small traders from coastal India, many of them have established large agro-industrial units, including sugar and tea plantations, textile manufacturing, large-scale agriculture, dairy production, floriculture, and the manufacturing of steel bars, roofing sheets, plywood, and basic medicines. Some of the older settlers have even ventured into the fields of education, private banking, insurance, and electronic services. However, the owners of these large companies often do not reinvest their profits in the countries where they operate. They prefer to keep and spend their money in the UK and the US since many of their family members reside there. While Indian businessmen and industrialists contribute significant tax revenue to their home governments, their activities do not significantly impact the equitable distribution of wealth in the countries where they operate. There are a few examples of Indian companies that have developed townships around their factories, complete with housing, hospitals, schools, colleges, and proper infrastructure for the benefit of their employees and the local residents. Apart from the larger companies, there are also numerous small-scale Indian businessmen and traders scattered across sub-Saharan Africa. Indian communities can be found even in remote places like the Kingdom of Lesotho, Swaziland, and the South Kivu province of the DR Congo, where violent civil wars have persisted for over two decades. It is remarkable to witness these Indian traders leading relatively prosperous lives in the deep rainforests of central Africa. Recognizing the long-standing relations between India and the Indian diaspora in sub-Saharan Africa, the Indian government has periodically revised its Africa policy. However, the full potential of this relationship has not been fully utilized. The Indian diaspora still considers India as their motherland, but India has not engaged with this widespread diaspora through a structured and calibrated policy. Adopting a clinical approach to meaningful economic cooperation with sub-Saharan African countries is necessary. Although trade between India and sub-Saharan African countries has been substantial and continues to grow, there are imbalances in the trade dynamics. India imports crude oil, gold bullion, diamonds, and other precious metals from Africa, which narrows the overall trade balance. On the other hand, India exports its goods and services to many African countries, but the imports from those countries are negligible. Local business communities and government authorities in Africa have expressed their aversion to this trade policy, as Chinese products are much cheaper and dominate the market. India’s Foreign Direct Investment (FDI) in Africa is significant, but more than 90% of it flows through Mauritius, a tax haven from where the money can be redirected to other countries. The remaining FDI is concentrated in sectors such as oil and gas, mining, pharmaceuticals, and textiles. Indian textile giants have invested in sub-Saharan African countries primarily to export their finished products to the US and EU countries, taking advantage of initiatives like the African Growth and Opportunity Act (AGOA) and preferential tax and quota-free exports to the EU. The Indian government has also provided significant financial support to sub-Saharan African countries for development projects. However, the cooperative engagement between India and sub-Saharan Africa has not fully achieved the desired impact. African countries aspire for inclusive socio-economic development, poverty reduction, employment generation, and sustainable economic growth through wealth creation. Empowering Small and Medium Enterprises (SMEs) is crucial to achieve these goals. This is an area where India has an advantage over its main competitor, China. With the presence of Indian businessmen throughout sub-Saharan Africa and the common use of the English language, and in some countries, French and Portuguese, resident Indians possess fluency in those languages. Moreover, many local SMEs have already adopted and successfully utilized Indian intermediate technologies. To address the challenges faced by SMEs in Africa, the Indian government, in consultation with the African Union (AU), has implemented notable projects such as the Indo-African Vocational Training Centre (VTC) and the India-Africa Entrepreneurship Development Centre (AEDC) in Rwanda. These projects focus on fostering innovative enterprises and training in small and medium-scale industries, contributing to increased national wealth and job creation. While these projects have been completed and are currently operational, their objectives are yet to be fully realized due to practical challenges. During a stakeholders’ meeting attended by concerned ministers, SME owners, and entrepreneurs from various countries, it was evident that almost all of Africa’s over 44 million SMEs face similar challenges for survival. Even if they manage to survive for a year or so, they lack the capacity to scale up production due to a lack of capital, appropriate technologies, and, most importantly, effective marketing strategies. Manufacturing and marketing are treated as separate business activities, and many SMEs operate informally as small family-owned units that are not members of any trade or business associations. Registering with government authorities remains a distant goal for many of these enterprises. Furthermore, most SMEs in Africa do not have bank accounts, and even for those that do, obtaining loans from banks is nearly impossible due to high-interest rates ranging from 12-14%. Microfinance institutions charge even higher rates, often exceeding 20%. As a result, these SMEs primarily sell their products locally, but their profit margins have been continually shrinking due to the influx of cheap Chinese products in the market. Consequently, these enterprises inevitably meet their demise when their seed capital dries up. India must actively engage in this space by making SMEs in sub-Saharan Africa viable and sustainable. Given that nearly 90% of the workforce in African countries is employed in the SME sector, it is crucial to start by facilitating detailed and sustained interactions between expert economic policy analysts from both the government and private sectors and their counterparts in the AU’s Division of Economic Policy and Research (EPR). With 46 countries in sub-Saharan Africa, each with a different economic structure, size, and availability of raw materials, it is necessary for Indian experts to identify regionally suitable SMEs and develop blueprints for individual countries or groups of adjacent countries in collaboration with the relevant Regional Economic Communities (RECs). Following this, two separate actions need to be taken. Firstly, reports from Indian experts should be circulated among trade and business organizations across India to identify Indian companies willing to invest in SMEs in sub-Saharan Africa. These investments do not necessarily have to be substantial, as even small amounts can initiate pilot projects. Secondly, local partners, either existing businessmen or new entrepreneurs, need to be identified with the assistance of Indian businessmen already familiar with the local socio-economic structure, demand and supply chains, and sources of affordable raw materials and other production inputs. With the invaluable support of VTCs and AFDC, this symbiotic approach can demonstrate the effectiveness of India’s policy by implementing pilot projects in different regions. The success of these ventures will undoubtedly attract more Indian and local businessmen to participate in this endeavor. It is important to note that this article is based on the author’s experience from diplomatic assignments in sub-Saharan Africa and working at the Africa desk of the Ministry of External Affairs. It aims to analyze the issues related to the stagnated Indo-African economic relations and propose a practical approach to fulfill Africa’s aspirations and create long-term opportunities for Indian businessmen. However, it should not be interpreted as an economic policy paper.
Source: Financial Express
The size of the Indian economy has increased by over 87% in US dollar terms in the nine years to 2023, the government said on Monday. “India’s GDP has reached $3.75 trillion in 2023, from around $2 trillion in 2014; moving from 10th largest to 5th largest economy in the world. India is now being called a Bright Spot in the global economy,” finance minister Nirmala Sitharaman’s office said in a tweet.Separately, at an event in Kerala on Monday, chief economic advisor V Anantha Nageswaran said India is set to become the third-largest economy by 2027. India was the 10th largest economy in 2014. “India is becoming consequential for the world economy because of our progress from number 10 position to number five,” Nageswaran said. He said India’s average contribution to world GDP rose from 1.1% in 1998-2007 to 5% in 2010-2019 and is estimated to be 6% in 2021-2028. “India’s contribution will only become better if we continue to deliver on our potential and promise.” On Saturday, Nageswaran had said that both the Reserve Bank of India and the ministry of finance believe 6.5% is the estimated growth for FY24 and the risks to this growth rate are evenly balanced. The International Monetary Fund has estimated India’s GDP growth to be 5.9% in FY24 while rating agencies S&P and Fitch have estimated the GDP to grow at 6%. India’s GDP in real terms grew at 6.1% in the fourth quarter of last fiscal, a pace significantly higher than what most analysts expected. A solid farm sector, buoyant services sector, a moderate pick-up in manufacturing, robust government capex and a favourable base pushed the quarterly growth. More than anything, net exports boosted the headline figure. With this, the National Statistical Office’s provisional estimates of the economic growth in FY23 came in at 7.2%, as against the advance estimates of 7%. The CEA expects the final growth number for FY23 would be higher when numbers are revised. The pace of growth in FY23 was slower as compared to the 9.1% recorded in FY22, but it represented a growth of 10.1% over the pre-pandemic year, FY20.
Source: Financial express
INTERNATIONAL
The government has completed feasibility studies to sign free trade and preferential trade agreements with 23 countries, Commerce Minister Tipu Munshi told the Jatiya Sangsad on Monday. Primarily, steps have been taken to initiate negotiations for signing FTAs with 10 countries and three regional alliances on a priority basis, he said, responding to a question from Kazim Uddin, lawmaker from Mymensingha 11 constituency. These countries are India, Nepal, Indonesia, Sri Lanka, Japan, Singapore, USA, Canada, China and Malaysia. In a bid to continue trade growth during the post-graduation period, the government is working to get market access in potential countries, the minister said. He informed that the feasibility study was completed for signing the Comprehensive Economic Partnership Agreement (CEPA) with India, and as per the recommendations of the study, both parties have decided to start negotiations for signing the CEPA. The government also signed an MOU with China for conducting a joint feasibility study. China has granted duty-free market access for 98 per cent products, or 8930 items, of Bangladesh with effect from September 1, the minister mentioned. A Memorandum of Cooperation was signed with Singapore in November last year to expand trade and investment between the two countries, he said, adding that a similar process is ongoing with Japan. "Decisions have been taken to start a joint feasibility study with Japan to sign a free trade agreement". Responding to a question from lawmaker Mamunur Rashid Kiron, the commerce minister said that Bangladesh’s trade deficit with China stands at 19,353 million dollars in favour of China. Bangladesh’s exports to China were 683 dollars, and its imports from China were 20720 dollars in FY22. He also mentioned that in the same fiscal year, the country’s exports to India were worth 1991 million dollars and its imports from India were worth 13241.4 million dollars. The minister told the House that the volume of bilateral trade with Pakistan is 996.79 million US dollars, of which Bangladesh exports 105.79 million dollars to China, whereas Pakistan’s exports to Bangladesh are 801 million US dollars.
Source: The financial express
As consumer demand for environmentally friendly products continues to grow, the textiles industry faces the imperative of adopting sustainability practices throughout the supply chain. To address this challenge and drive change, TÜV Rheinland and BluWin will enter a memorandum of understanding (MoU) to cooperate and bring together their respective strengths and expertise. TÜV Rheinland and BluWin will collaborate on awareness campaigns and industry events to promote more sustainable practices and foster knowledge-sharing among stakeholders. Through this partnership, TÜV Rheinland, with its extensive experience in quality assurance, certification as well as verifications, will work closely with BluWin, a high-impact climate solution provider that offers a suite of expert solutions to identify and reduce the adverse effects of the fashion, textile, and footwear industries. “We are delighted to formalize our partnership with BluWin through this MoU. Together, we aim to set new benchmarks for sustainability practices, creating a more responsible and eco-conscious future for the sector,” says Jia Liu, Global Sustainability Director for the Systems Business Stream of TÜV Rheinland. “This collaboration represents a significant step forward to broaden our service offerings for the textile industry: We are combining the vast knowledge of TÜV Rheinland in environmental, social and governance topics with BluWin’s expertise in textile supply chain chemicals management and process efficiency improvement. By working closely with brands and retailers and their value partners, we will accelerate the industry transformation towards more circular business practices.” Omar Orrego, General Manager for BluWin said, “We are delighted to collaborate with TÜV Rheinland to advance environmental standards within the textiles and apparel industry. BluWin’s expert services will benefit brands and retailers, manufacturers, and other stakeholders through adopting sustainable practices, and installing process efficiency improvement as we combat environmental challenges ahead”. By working together, the partners aim to inspire industry-wide change and accelerate the adoption of more sustainable measures within the textiles sector.
Source: Textile World
In the first four months of 2023, China-sourced goods accounted for only 17.9% of US apparel imports in value, and 30.6% in volume. In 2019, China’s share of US apparel imports was as high as 30% in value. Notably, China’s share of US cotton clothing imports has now dropped below 10%, a direct effect of the Uyghur Forced Labor Prevention Act (UFLPA) introduced by the US government. NGOs have been raising concerns for several years about the fact that 20% of the world’s cotton output originates from Xinjiang province, which is also the source of the best varieties of cotton. But the so-called “integration through labour” policies affecting the Uyghur Muslim minority which have been deployed by China in the province are now openly labelled by the international community as forced labour. A year ago, US customs began to impound Chinese imports sourced from Xinjiang, or suspected as such: 4,269 shipments have been checked during this period, of which 619 were confiscated. Of the shipments screened by customs, 753 contained apparel, footwear and textiles. However, China ranked as only the third country of origin in terms of the value of the shipments that were checked across all sectors, with $161.1 million worth of goods. It was mostly shipments from Malaysia (worth $843.7 million) and Vietnam (for $388.7 million) that were suspected of being linked to Uyghur exploitation. The hunt for Xinjiang-sourced goods has also notably affected Vietnam, the second-largest apparel supplier to the USA after China. In the first four months of 2023, Vietnam’s share of US apparel imports fell to 17.3%, down from 18.6% a year earlier, reducing the market share gap between China and Vietnam to a mere 0.6%.
Source: The in.fashionnetwork.com
Spanish fashion retailer Inditex and Spanish finishing specialist for sustainable clothing Jeanologia have developed the first industrial air system designed to extract microfibers during garment manufacturing and thus reduce subsequent shedding in domestic laundering. Called the ‘Air Fiber Washer,’ the new system extracts up to 60 percent of microfibres during the manufacturing process by using dynamic airflow in combination with microfiltration to capture microfibres. According to Inditex and Jeanologia, each industrial Air Fiber Washer machine will allow for the collection of up to 325 kilograms of microfibres per year for potential repurposing, depending on the type of fabric and machine conditions such as loading and movement. “We must promote innovative solutions that allow us to respond to the challenges of our industry, such as microfibre shedding. This project with Jeanologia is an example of how we can collaborate with other industries to limit our impact on resources such as water right from the manufacturing stage,” commented Javier Losada, general director of sustainability at Inditex, in a press release. Microfibres are small particles less than 15 millimetres in length that are shed from textiles, especially during initial domestic washes. “This is one of the great challenges for the textile industry due to existing limitations in current industrial capacities for water treatment,” according to the two companies. The Air Fiber Washer is currently having its first public run at the international textile technology fair (ITMA) in Milan, which concludes tomorrow. The technology would be shared with the industry “with no strings attached” promised the companies, as part of their effort to mitigate microfibre shedding. The aim is to offer cost-neutral technological solutions to manufacturers, brands and retailers so that they can use them immediately. “With innovative technology, this new development makes it possible to reduce microfibre shedding by up to 60 percent through the use of air, without employing water or thermal energy and without compromising aspects such as fabric quality. Its dynamic air flow extracts the microfibres from the garments and collects them in a containment bag for potential recycling, moving us closer towards a circular industry with zero waste,” states the press release. “Working with Inditex is a great experience and a source of pride. This initiative is just the first step in the mission we have set for ourselves to minimise the impact of microfibre shedding in textile manufacturing and in the product life cycle,” emphasised Jeanologia president Enrique Silla.
Source: The fashionunited.in
The collaboration will enable fabric mills and brands to combine Archroma’s pigment colouration solutions with ColouRizd’s QuantumColour yarn-clothing technology in a bid to help them produce high-quality, high-performance textiles with minimal environmental impact. The companies explain conventional fibre-reactive methods of dyeing cellulosic and synthetic yarns are multi-step resource-intensive processes that use up to 95 litres of water per kilogram of coloured yarn and discharge approximately 94 litres of effluent. ColoRizd’s QuantumColour process injects pigment and a binder directly into the yarn, using only 0.95 litres of water per kilogram of coloured yarn while producing no waste. This is said to equate to a reduction of 98% in water consumption alongside zero wastewater discharge, zero discharge of harmful chemicals, a 73% decrease in carbon footprint and another 50% reduction in energy use. Joaquin Femat, director of printing market segment, textile effects division at Archroma explained: “The company is committed to advancing the fashion and textile industry with sustainable solutions that are safe, efficient and enhanced. As the preferred supplier of pigment colouration solutions for QuantumColour, we are proud to join ColourRizd in challenging industry conventions to make textile and fashion production better for brands and mills, people and our planet.” Jennifer Thompson, chief executive officer at ColouRizd added: “With a mission to revolutionise the textile industry through groundbreaking and ecofriendly solutions, ColourRizd is pleased to partner with Archroma to champion clean and simple yarn colouring. We are reimagining textile colouration in partnership with leaders like Archroma because we believe in a future where fashion is accessible, affordable and sustainable.” The company uses the technology to upcycle textile waste into colours that are synthesized from a minimum content of 50% waste-based raw material.
Source: The just-style.com
Toray Industries, Inc., global supplier of innovative technologies and advanced high-performance materials, will be at the 54th International Paris Air Show, in Le Bourget Parc des Expositions on June 19 to 25. The Toray team is looking forward to continued dialogue with customers and industry partners on advancements in composite material technologies to meet the ever-evolving needs of the aerospace industry. At the forefront will be discussions on emerging technologies for nextgeneration, clean, and zero-emission aircraft. Toray’s rich heritage of innovation has established technologies that played a pivotal role in shaping the aerospace industry. With TORAYCA™ carbon fiber, thermoset materials and thermoplastic composites, Toray enabled the large-scale adoption of composites in commercial and general aviation, and continues to pave the way for next generation programs through valued customer collaborations. In the area of zero-emissions air mobility, TORAYCA™ carbon fiber, Toray thermoset and Cetex® thermoplastic composites are the material of choice of eVTOL (electric Vertical Takeoff and Landing) programs currently in development. These materials provide optimal strength and toughness, efficient processing, and necessary databases required for certification, allowing companies to meet performance targets and adhere to certification schedules. Extending beyond eVTOL applications, Toray’s diverse product portfolio has enabled tailored solutions for primary and secondary aerostructures, rotorcraft, radomes, antenna systems, large payload fairings, landing leg assemblies, and more. To meet the evolving needs of customers, Toray recently announced an upgrade of its Alabama facility in the United States which doubles the production capacity of the highperformance TORAYCA™ T1100 carbon fiber. This is a critical component in several US DoD weapon systems to include missiles and munitions, rotor systems, and primary aerostructures. Additionally, Toray will continue to invest in advanced material technologies and leverage it to provide sustainable solutions. “Sustainability is a core value that drives everything we do,” said Tim Kirk, vice president of marketing. “It is a fundamental part of our identity – part of our DNA. We used to think of sustainability as just being a responsible corporate citizen, supporting measures to reduce environmental burden, reduce our carbon footprint, promote recycling, etc. These are still important, but sustainability is now much more. It is now with a ‘Big S’, a table stake. Our customers expect nothing less from their supply chains, and we’re proud to lead the way with sustainability.”
Source: Textile World
