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When compared to the high base of the previous year, India’s trade performance has shown declining trends after experiencing very strong growth in 2022–2023 as a result of persistent geopolitical tensions and monetary tightening-induced recessionary fears that have decreased consumer spending across advanced countries. Official data revealed that May 2023 saw a further estimated fall in textile exports as a result of the muted demand brought on by the consequences of the global recession. Under merchandise imports, Textile Yarn Fabric and Made-Up Articles are estimated to decline by 11.93 per cent. For May ’23 exports of cotton yarn/fabs/made-ups and handloom products are estimated to decline by 6.02 per cent to Rs. 7,577 crore as against that recorded in the previous year. Exports of man-made yarn/fabs/made-ups are expected to decline by 0.22 per cent to Rs. 3,253 crore when compared with May ’22. Exports of RMG of all textiles are expected to decline by 7 per cent Rs. 10,176 crore compared to the previous year’s exports. Imports for Textile yarn fabric and made-up articles are estimated to decline by 6.21 per cent in May ’23 to Rs. 1,551 crore when compared to the same period of the previous year.
Source: Apparel Resources
Techtextil 2023, which will be held in Mumbai from September 12 to 14, will have a separate platform for the South India Textile Research Association’s (SITRA) medical textiles. According to a press release, the medical textiles expo called Meditex-2023 will be a pavilion focussing on medical textiles with high growth applications. There will be live demonstrations too. A report published by Ministry of Textiles on Indian technical textiles says the potential of the medical textiles market with a 5% share is valued approximately at $1.125 billion in 2021-2022. SITRA’s Centre of Excellence for Medical Textiles, established in 2008, organised MEDITEX — an international medical textile expo and conference in 2014 and 2018. In 2023, the expo will be held as a part of Messe Frankfurt India’s Techtextil India 2023. Raj Manek, Executive Director and Board Member, Messe Frankfurt Asia Holding Ltd., said, “Medical textiles being one of the categories of technical textiles, and with its scope and growth opportunities promisingly scaling up, this collaboration will mean a boon to the industry visitors to have a [glimpse] of entire innovations not only in technical textiles but also in medical textiles”. Prakash Vasudevan, Director of SITRA, said a common platform where manufacturers can exhibit new products/technologies that will help the industry expand business opportunities is essential.
Source: The Hindu
Setting up of the Kakatiya Mega Textile Park (KMTP) at Geesukonda in Warangal district is a significant step in the direction of fostering the sector’s growth, generating substantial employment opportunities and reviving the past glory of the erstwhile composite Warangal district as a major textile powerhouse, said Industries and IT Minister K.T.Rama Rao. The KMTP, one of the biggest textile parks in India, was set up to promote the ‘Farm to Fashion’ concept, provide support to cotton farmers, and revive the past glory of Warangal district, endowed with best quality cotton produce and skilled weavers, the Minister said. He was speaking at the groundbreaking ceremony of South Korea’s textile major Youngone’s 11 factories at the KMTP on Saturday. South Korean Ambassador in India Chang Jae-bok, Youngone Corporation’s chairman and CEO Ki-Hak Sung were present. Addressing the gathering, Mr.Rama Rao said the Youngone factories at KMTP will generate employment for around 21,000 people. Four factories will be set up in the first phase providing employment to nearly 6,000 people and seven more factories will come up in subsequent phases. The majority of jobs at these factories will be earmarked for locals, particularly women, he said, adding that the garments produced at these factories will be of international standards and the Made-in-Telangana textiles will be exported to America, Europe and other countries. The Centre, belatedly, launched the PM MITRA scheme, inspired by the KMTP, he said, asserting that the Telangana government was at the forefront of implementing a plethora of path-breaking schemes, heralding all-round development of the State and people’s welfare.
Source: The Hindu
Free trade agreements (FTAs) need to ensure they provide a level playing field and the India-UK FTA, which recently completed its 10th round of negotiations, has to be a win-win scenario for both sides, the head of India’s leading business chambers has said.Subhrakant Panda, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), was in the UK this week for the FICCI Forum of Parliamentarians, a bipartisan initiative for political outreach. The delegation from India was briefed on areas of interest in the bilateral relationship over a series of discussions with businesses and parliamentarians.“As far as Indian businesses are concerned, we are competitive, confident and looking to engage with the world,” said Panda.“I think what FTAs need to ensure is that they provide a level playing field and are rules-based. It’s all about give and take. Clearly, both governments are engaged in intense discussions and 10 rounds have been completed, so I would look at it from the point of view that both governments have to find common ground because like with any agreement it has to be a win-win scenario – one which works for both sides,” he said.India and the UK have been negotiating an FTA since January last year, with a goal towards a comprehensive pact that is expected to significantly enhance the bilateral trading relationship worth an estimated GBP 34 billion in 2022.“We hope that this is something that will be concluded and we have offered whatever inputs we had to provide as a Chamber to the government of India, or some of our members have also individually provided feedback. So, based on that we’re comfortable that common ground will be found for an FTA which is broad-based and works in the interests of both countries,” added Panda.As the Managing Director of Indian Metals and Ferro Alloys Ltd (IMFA), Panda said, one of the priority areas he has been focussed on relates to critical minerals and for India to develop a strategy in this important field.“When we talk about growth today, the focus is not just on growth but on inclusive and sustainable growth. And talking about the sustainability part of it, when it comes to electric mobility or renewable energy or high-end industrial applications, all of these ultimately boil down to some critical mineral or the other,” explains Panda. “At this point, India happens to be reasonably import dependent. Therefore, one of the things we have done is to put together a FICCI report on ‘New Age Energy Minerals’, where the focus is on both geological as well as geographical details of critical minerals, their availability, the resources, where they occur in the world, demand forecast going ahead, and the entire value chain including end-use applications,” he said.The primary recommendation of the report is to look at prioritising exploration in India and Panda pointed to the “great importance” of locating lithium deposits in Jammu and Rajasthan – even though they are a few years away from being commercialised.“The other main strategy that we are advocating is that India must leverage both its mining expertise, as well as its strategic relationships to access these resources,” he added.
Source: Financial Express
Textiles and apparel exports registered a 12.2% year-on-year decline in May as the industry continued to face low demand in its key overseas markets including the U.S. Textile exports shrank 11.8% from the year-earlier period and apparel exports contracted 12.7%. Jute products slumped 29.3%, while handicrafts and handmade carpets fell 21.1%. India’s textile and apparel exports last month were in total valued at $2,816 million (as against $3,206 million in May 2022) and its share in all commodity exports declined to 8.05%, from 8.22% a year earlier. The continuing decline in export of textiles and apparels was a matter of deep concern, said Siddhartha Rajagopal, Executive Director of Cotton Textiles Export Promotion Council. Exports of textiles and apparel shrank 19.3% in March and 21.7% in April, according to data available with the Confederation of Indian Textile Industry. “The main reason is the sluggish demand in major importing countries including the U.S., Germany, and the U.K. on account of inflation and also piled up inventory,” Mr. Rajagopal observed. “However, reports from the trade suggest that going forward, the situation is improving as exporters are slowly but steadily getting orders for supply of merchandise. With China also opening up after COVID there are expectations of good business opportunities especially for yarn and fabrics. Domestic cotton prices are also moderating giving hopes of higher sales from July/ August,” he added. K.M. Subramanian, president of the Tiruppur Exporters Association, said while the U.S. market was improving, exports to the EU had not picked up as expected. “Our competing countries have duty free access and that gives... 11% cost advantage. That is why we want the free trade agreement with the U.K. to be expedited,” he added.
Source: The Hindu
With the current geopolitical challenges between China and the United States, as well as the ongoing supply chain issues affecting manufacturers and consumers, there’s been much talk about moving global manufacturing out of China. But despite the talk, U.S.-China trade reached a record level in 2022, with no signs of any slowing in the near future. While former U.S. secretary of state Henry Kissinger is credited with opening China to the West under then-President Richard Nixon, it wasn’t until 2000 that the U.S. granted China permanent normal trade relations — a legal designation that allows foreign nations be granted most favoured nation status, and hence be treated similarly to other members of the World Trade Organization. This move reinforced China’s growing role in global trade. Since then, much of the world’s manufacturing base has migrated to China, attracted by low-cost labour and favourable policies from the Chinese government. These policies include massive investments in infrastructure and trade capacity.
Source: National post
The UK has demanded national treatment for its services businesses and greater freedom to its professionals to operate in India during negotiations on the bilateral Free Trade Agreement. New Delhi, on its part, has asked for similar concessions on reciprocal basis, a senior official said. National treatment means treating foreigners and locals equally with regard to rules and regulations. It also means equal access to opportunities for overseas operators and not doing anything that puts them at a disadvantage. The areas of services that the UK is interested in are financial, business and professional, and transport services. It also wants a liberalised visa regime for its business travellers to give them greater opportunities to operate in India. “The UK is an important financial services centre of the world, so they always have interest in that. Talks are going at a high level but nothing firmed up so far. Both sides have exchanged the list of services where they are keen to promote exports,” the official, who did not wish to be identified, said. “There are no tariffs involved in services trade negotiations, the talks are on issues of access to market,” he added. The Indian government regulates foreign participation in the financial sector by putting Foreign Direct Investment (FDI) limits and other conditions of ownership and control. Regulators like Reserve Bank of India also put conditions on the management and control of entities where foreign investment has come in. “Services sector FDI are also part of the discussion. Regular meetings are held at higher levels to review the progress, resolve the outstanding issues and discuss the way forward in negotiations. So far nothing has firmed up in the services sector,” the official said. India’s services exports to the UK in 2022 stood at $12.7 billion while imports were $8.59 billion. The UK is the biggest market for India’s IT exports after the US and India has been seeking liberalised visa norms for skilled workers in IT and other sectors. From the UK side its stated objective to preserve the integrity of UK immigration debate weighs on negotiations on areas in services of interest to India . Till now 10 rounds of negotiations have been held on India-UK FTA. The negotiations are happening over 26 policy areas or chapters. Fourteen chapters/policy areas have been closed for negotiations and significant progress has been made in others. “Both sides aim to conclude negotiations at the earliest,” the official said. Along with FTA, both India and UK are negotiating an investment agreement, Bilateral Investment Treaty. This treaty will be concluded simultaneously with the FTA.
Source: Financial Express
Merchandise exports fell for the fourth consecutive month, while the trade deficit widened to a five-month high in May. Several key sectors saw negative growth, including petroleum products, gems and jewellery, engineering goods, textiles, chemicals, etc. On the other hand, the services sector, led by the IT industry, did well bridging the widening goods export gap, but we must avoid such partgood,part-bad performances and aim for a steady and uniform growth of the exports basket. After a noteworthy FY22 when India galloped to become the world’s fifth-largest economy, exports surged to a seven-year-high share in GDP. But exports growth moderated in FY23, as persisting geopolitical tensions and monetary tightening-induced recessionary fears dented demand across advanced nations. Trade is an essential growth engine, and for India to break into the top three, we must first achieve the $1 trillion export target by 2030. More than the headline export growth number, the pattern of specialisation or the composition of exports is also crucial. For the first time, economists at RBI studied India’s Export Similarity Index (ESI) and offered both good and bad news. The share of principal commodities like engineering goods, chemicals, drugs and pharma, rice, and electronics in India’s overall export basket has increased in the past decade. In contrast, the share of commodities across labour-intensive items like textiles and others fell. This is in line with the shifting pattern in international merchandise trade and confirms that India is on the right track. However, only 60% of India’s exports are similar to that of the G7. Likewise, in services too, postpandemic India did close the trade gap faster than the G7, but its services ESI, with respect to the world, is lower than all the G7 nations. One way of raising exports includes Free Trade Agreements (FTAs) with other countries. India has 14 such FTAs, besides pacts with South Korea, Japan, Australia and UAE. An analysis of the FTAs shows that India’s merchandise ESI in the Asean region is lower than the Big-5 Asean economies, and worryingly, it has been falling. In contrast, Vietnam, the emerging manufacturing and export hub, has seen steep increases in its ESI values over the past two decades. Given India’s aspirations of becoming a developed country, its score on export competitiveness is rather low even among Asean peers and needs urgent attention.
Source: New Indian express
INTERNATIONAL
As the UK considers extended producer responsibility (EPR) for textiles, Valpak, headquartered in Stratford-upon-Avon, has published a report to help retailers understand the scale of opportunity for textile reuse and recycling, and to show how recycling can complement reuse in the development of a circular economy for textiles. The UK spends more on clothing than any country in the EU, and sends 336,000 tons of it to landfill or energy incineration each year – a number the UK government would like to see come down. It is consequently exploring the idea of adding textiles to the current list of materials covered by EPR legislation, which already includes packaging, waste electrical and electronic equipment (WEEE) and batteries. The “producer pays” EPR model means brands or retailers are charged a fee to cover the cost of recycling. Often, this includes ‘eco-modulation’ – a reduction in fees for products that are easy to recycle or that contain recycled content. The end goal is to incentivise design for durability and make products last longer. An EPR system has already been in place in France for some years and Sweden and The Netherlands are also planning to now introduce them. With EU regulations earmarked for 2025, it is unlikely that the UK will delay for long. Valpak, a member of the Reconomy Group, is the largest environmental compliance scheme in the UK, working with major names, such as Aldi, Tesco, ASOS and Miele, and manages compliance for more than 2,000 businesses.
Source: Innovation in Textiles
Pakistan’s textile sector has faced its eighth consecutive month of decline in textile exports on a year-on-year basis, indicating persistent challenges for the industry. While May 2023 saw a month-on-month increase of 7% in textile exports, reaching $1.32 billion, there was a significant year-on-year decline of 20% compared to the same period last year. The trend of declining textile exports on a year-on-year basis has continued for eight months, according to research conducted by Arif Habib Limited (AHL). Despite the positive momentum in May, the overall picture for the fiscal year 2023 remained negative, with textile exports totalling $15.03 billion for the 11- month period, reflecting a year-on-year decrease of 14.7%. These figures underscore the challenges faced by the textile industry and the need for sustained efforts to revive and strengthen its performance. Nasheed Malik, an analyst at Topline Securities, confirmed that Pakistan’s textile exports experienced their eighth consecutive month of decline on a year-on-year basis. In May 2023, textile exports reached $1.32 billion, indicating a 7% month-on-month increase. In terms of Pakistani Rupees (PKR), the exports amounted to Rs377 billion, reflecting the same 7% monthon-month growth. Notably, value-added textile exports recorded $889 million, showing a 3% increase from the previous month. Among the value-added products, towels, ready-made garments, and knitwear witnessed respective month-on-month increases of 10%, 8%, and 3%. However, bedwear experienced an 8% decline. On the other hand, basic textiles saw a remarkable 31% month-on-month increase, with cotton cloth alone increasing by 19%. In terms of volume, ready-made garments and towels increased by 8% and 5%, respectively. Furthermore, cotton yarn and cotton cloth surged by 64% and 22% in volume, respectively. This positive trend in basic textiles can be attributed to improved orders from countries such as China and Bangladesh. However, when compared to May 2022, Pakistan’s textile exports witnessed a year-on-year decline of 20% (with a 17% increase in PKR terms). This decline was primarily driven by a 21% decrease in value-added products and a 19% decline in the basic segment. Value-added exports experienced declines in bedwear, knitwear, ready-made garments, and towels, which decreased by 28%, 22%, 17%, and 5% respectively, on a year-on-year basis. During the 11-month period of fiscal year 2023, Pakistan’s textile exports totalled $15.03 billion, representing a 15% year-on-year decrease (with an 18% increase in PKR terms). Basic textiles recorded a 22% decline, while valueadded products declined by 13% compared to the previous year. Notably, volumetric exports of ready-made garments and knitwear increased by 46% and 9% respectively during this 11-month period. The devaluation of the Pakistani rupee is believed to have had a positive impact on these labour-intensive segments. However, it is anticipated that textile exports for the fiscal year 2023 will range between $16-16.5 billion, indicating a decline of approximately 16% compared to the previous fiscal year. Asim Hassan, an analyst at Insight Research, attributes the slowdown in textile exports to the global recession, lower export orders, and challenges within the domestic environment. Challenges in the domestic economy include the removal of subsidies, unavailability of locally produced cotton, delays in the clearance of imported cotton and other essential inputs, elevated gas and electricity tariffs, and increased finance costs. Market experts anticipate an increase in volumetric terms for textile exports as the inventory pileup gradually declines and demand resurges at export destinations. However, the decline in product prices is likely to offset the impact. Furthermore, headwinds in the domestic economy will continue to hamper textile players, further exacerbating the challenges faced by the industry.
Source: The Tribune.com
Lili Yan Ing is the Secretary General of the International Economic Association, and a Lead Adviser for the Southeast Asian region at the Economic Research Institute for ASEAN and East Asia.The article reflects the author's opinions, and not necessarily those of CGTN. The recent G7 summit in Hiroshima and the subsequent G20 tourism meeting in Kashmir underscored the stark contrast between the two groups' rhetoric. While the G20 emphasized its "one Earth, one family, one future" motto, the G7's combative attitude could be summarized as "We must divorce China." For the member states of the Association of Southeast Asian Nations (ASEAN), decoupling is not an option. While the region could benefit from production and investment shifting away from China to ASEAN countries, a full economic decoupling between the Chinese economy and the West could also result in trade diversion, higher production costs, and reduced welfare over the long term. The push to decouple the American and European economies from China currently seems to be limited to sectors such as energy, semiconductors, information and communication technology, mining, and minerals. But decoupling is expected to affect nearly every industry, including machinery, mechanical appliances, electrical components, and automobiles. Given that ASEAN economies are equally dependent on the United States, the European Union, China, and East Asia, the bloc must maintain neutrality, refrain from taking sides, and strengthen cooperation. By leveraging their growing economic and political influence, member states could promote peace, foster cooperation, and increase engagement with the international community. Amid the intensifying geopolitical rivalry between the U.S. and China, ASEAN countries must also deepen regional economic integration. Over the past two decades, intra-ASEAN trade as a share of members' total trade has stagnated at around 22-23 percent. To be sure, members' exports to the rest of the world have increased over this period. But ASEAN countries' share of global trade barely increased between 2000 and 2022, growing from 6.4 percent to 7.8 percent. There are three possible explanations for the stagnation of intra-ASEAN trade since the turn of the century. The first is the region's model of shallow integration. Because most ASEAN-made products are substitutes rather than complements, the scope for increased trade between members is inherently limited. Second, stricter rules of origin and non-tariff measures could act as trade barriers. While these regulations and procedures are aimed at ensuring health, safety, and environmental protection, their design and implementation can inadvertently impede trade and investment. Lastly, it is important to recognize that ASEAN is not a self-contained region. Member states rely heavily on investment and technology from countries such as Japan, South Korea, and China. And while the bloc functions as a united group, it is not a customs union, which means that member states may engage with other countries or blocs on their own. This flexibility enables members to pursue their own interests and seek diverse partnerships and agreements while maintaining the cohesion and vitality of the ASEAN community The Regional Comprehensive Economic Partnership, which includes all 10 ASEAN countries, China, Japan, South Korea, Australia, and New Zealand, is a case in point. Representing roughly one-third of global GDP and onequarter of the world's total trade and investment, the RCEP is the world's largest free-trade area, and its aim is to foster greater trade integration by reducing tariffs on 90 percent of product lines. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (previously known as the Trans-Pacific Partnership) is another example. Since 2018, four ASEAN countries – Singapore, Vietnam, Brunei, and Malaysia – have joined the CPTPP, which accounts for roughly 13 percent of global GDP and aims to reduce tariffs on 98 percent of product lines. The Indo-Pacific Economic Framework for Prosperity (IPEF), a newly established grouping launched by U.S. President Joe Biden's administration in May 2022, also seeks to foster regional partnerships. But the agreement has faced criticism for being exclusionary and divisive. In addition to the U.S., Japan, South Korea, India, Australia, and New Zealand, seven ASEAN countries – Singapore, Thailand, Indonesia, Malaysia, the Philippines, Vietnam, and Brunei – have joined the IPEF. But Cambodia, Laos, and Myanmar have been left out of this new framework. Such exclusions could exacerbate economic disparities between ASEAN members and heighten regional tensions, offsetting the benefits of existing mega-regional trade agreements, such as the RCEP. Some critics have argued that the IPEF is largely symbolic and intended to appeal to American voters rather than implement effective policies that benefit its members. Likewise, trade ministers from across the Indo-Pacific recently convened in Detroit to discuss a series of measures aimed at bolstering supply chains for essential goods, such as semiconductors and critical minerals. But the agreement they reached lacks clear policy objectives beyond reducing dependency on China. Given that they cannot afford to decouple from either side, the escalating rivalry between China and the West puts ASEAN countries in a difficult position. Trade between the bloc's member states and Europe more than tripled between 2000 and 2022, from $110.5 billion to $342.3 billion. Similarly, ASEAN's trade with the U.S. surged from $135.1 billion to $452.2 billion. ASEAN exports to the U.S. nearly quadrupled from $87.9 billion to $356.7 billion over the same period. At the same time, trade between ASEAN and China reached $975.3 billion in 2022, an astounding 24-fold increase from 2000. ASEAN countries' exports to China increased by a factor of 18 during this period, from $22.2 billion to $408.1 billion. Moreover, East Asia, the U.S., and the EU are all significant sources of foreign direct investment in ASEAN countries. In 2021, East Asian countries accounted for 33 percent of total foreign direct investment in the region, while the U.S. and EU accounted for 22 percent and 15 percent, respectively. Given the depth of these economic ties, urging ASEAN countries to decouple from China is deeply unfair. It is also short-sighted because decoupling would undermine trade and economic development within the bloc, fueling political instability across the region.
Source: The News.cgtn.com
South Korean textile giant Youngone Corporation on Saturday performed ground-breaking ceremony for establishment of 11 factories as part of its Evertop Textile & Apparel Complex Pvt Ltd at Kakatiya Mega Textile Park (KMTP) on Saturday. "The Youngone facilities at KMTP will focus on manufacturing sportswear, knitting, textiles, dyeing and finishing as well as poly products and would create as many as 21,000 jobs," IT and industries minister KT Rama Rao said, addressing the gathering. The upcoming facilities would be built as per international standards and 'Made in Telangana' garments would be exported to markets around the world, including US and Europe. A chunk of the jobs created at Youngone's factories would be reserved for locals, especially women, he added. The company has acquired 290 acres of land at KMTP. In the first phase of the 900-crore project, four factories would come up and create nearly 6,000 jobs, the remaining seven units will come up later in subsequent phases. KTR blasted the Union government for copying Telangana government's welfare and developmental schemes. "Our schemes are being copied by the Centre. Telangana's Kakatiya Mega Textile Park (KMTP) was established in 2017 by chief minister K Chandrashekhar Rao. They floated 'PM Mitra'. 'Mission Bhagiratha' is 'Har Ghar Jal Yojana', TS- iPASS is 'Single Window', 'Rythu Bandhu' 'PM Kisan' and Mission Kakatiya as 'Mission Amrit Sarovar' are just a few the examples," he stated. Panchayat raj and rural development minister Errabelli Dayakar Rao, Republic of Korea (South Korea) ambassador to India Chang Jae-Bok and Youngone Corporation chairman & CEO Kihak Sung participated in the ceremony. Youngone CEO Kihak Sung termed the project as a make or break one for his company. "With this project either we will become number one in the world or we will perish. We have reached a point of no return (with this project)," he said. "We finally decided to come to Warangal, which was not an easy decision. We finally decided despite many (sic) negative attitude towards investment in India," he added. Korean ambassador Chang Jae-Bok said Telangana was leading in south India and its growth story attracted Youngone units in the state.
Source: times of India
