INTERNATIONAL
NATIONAL
Government think-tank Niti Aayog is looking at tax-related issues, including inverted duty structure in three sectors of engineering, leather, and textiles, an official said on Monday. The issues are likely to be taken up with higher authorities for their resolution to promote the growth of these sectors, the official said. Industry representatives of leather and engineering sectors said that they have shared a list of GST (Goods and Services Tax) and inverted duty structure-related issues with the Niti Aayog. "We expect the government to resolve those issues as it would help in promoting manufacturing and exports from the country," an industry official said. The leather sector has recommended the reinstatement of basic customs duty on the import of wet blue, crust and finished leathers. The exercise assumes significance as these three sectors are labour-intensive and contribute significantly to the country's merchandise exports. The leather and footwear industry employs 4.42 million people and its exports stood at USD 5.26 billion in 2022-23. Engineering exports in the last fiscal aggregated at USD 107 billion, while the outbound shipments of the textile sector were about USD 36 billion in that fiscal year.
Source: Economic Times
India and Bangladesh commencing cross-border trade settlement in Indian rupee (INR) would promote two-way commerce by reducing transaction cost, an industry official said on Sunday. CII national committee on EXIM Sanjay Budhia said that since all exports and imports and settlement of trade transactions under this arrangement may be denominated and invoiced in INR, this would also reduce dependence on the US Dollar and would address situations like scarcity of forex reserves apart from strengthening regional currency and trade. In July, Bangladesh and India launched trade transactions in rupees with the aim of reducing dependence on the US dollar and strengthening regional currency and trade. This is the first time Bangladesh has done bilateral trade with a foreign country in addition to the US dollar "This would certainly promote the growth of trade between the nations and support the increasing interest of the global trading community in INR," Budhia said adding due to this arrangement, the transaction costs during trade between the countries will reduce which will boost the Indian exports to Bangladesh. Bangladesh is currently facing scarcity of forex reserves and the provision of trade settlement in INR would greatly help address the situation resulting in increase in import demands from India, he said. Trade settlement in INR alleviates exchange rate uncertainties for Indian enterprises by obviating the necessity of using USD in advance of conducting financial transactions and it would have similar effects on Bangladesh too, he added. "This will go a long way in further enhancing the already significant economic relations between India and Bangladesh through economically efficient crossborder transactions," Budhia said. Further he suggested creation of a technology fund through which the Government could fund R&D and innovation projects, with the private sector contributing 60 per cent and 40 per cent coming from the fund. "Industry could look at taking business delegations to Bangladesh to better explore the market. The large enterprises could also provide handholding services to smaller entrepreneurs in their journey towards export excellence," he said. The key sectors which would benefit from the development include cotton, spices, agri produce, leather, textiles, gems and jewellery, iron and steel and chemicals. Bangladesh is India's biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh. Banks in Bangladesh and India have been given permission to open nostro accounts, an account in a bank of another country for the purpose of foreign currency transactions. According to the official data from Dhaka, exports from Bangladesh to India amount to USD 2 billion, while Bangladesh's imports from India are worth USD 13.69 billion.
Source: Economic Times
Ministry of Micro, Small and Medium Enterprises (MSMEs) implements various schemes for adoption of sustainability measures in MSME Sector. MSMEs Champions Scheme is one such initiative of Ministry, which provides various incentives to MSMEs under the following three components: MSME-Sustainable (ZED) MSME-Competitive (Lean) MSME-Innovative (Incubation, Intellectual Property Rights, Design and Digital MSME) The MSME Sustainable (ZED) Certification Scheme encourages MSMEs to improve their processes and systems to enhance quality and move towards sustainability through minimizing environmental impact. MSMEs Sustainable (ZED) Certification Scheme provides financial assistance up to 75% of the total cost of testing/certification, with the maximum ceiling of subsidy being Rs. 50,000. ZED certified MSMEs are eligible for handholding and technology up gradation support up to Rs. 2 lakh and Rs. 3 lakh respectively. Presently more than 54,000 MSMEs have registered and more than 13,700 MSMEs have been certified under MSMEs Sustainable (ZED) Certification Scheme. Under MSME Competitive (Lean) Scheme, MSMEs are entitled for financial assistance up to Rs. 2,16,000 towards advance level implementation of scheme to reduce rejection rates, product and raw material movements and product cost. MSME Innovative Scheme provides financial assistance up to Rs. 15 lakh per idea to host Institutions for developing and nurturing the ideas. Under this scheme, MSMEs Idea Hackathon 2.0 was held for 15 different themes and 276 ideas were approved out of total 13764 ideas received. Ministry of MSME has taken various publicity measures to popularize the above schemes among MSMEs through awareness programmes, campaigns and advertisements. In addition to above, Government has taken various initiatives through Small Industries Development Bank of India (SIDBI) to increase the adoption of sustainability measures among MSME's namely Mission Solar, Mission Evolve, Mission Waste to Environment Taste, Mission Energy Efficiency, Nurture t Nature, Sustainability Perception Index (SPeX) and Green Inclusivity (GRiT). Under SPex initiative, SIDBI has come out with Sustainability Perception Index (SPeX), a quarterly report on sustainability awareness among MSMEs. Based on survey, the index during October – December 2022 was 46 which increased to 54 during January – March 2023 Under GRiT project, SIDBI adopts some micro/artisan clusters, positions specialized agencies and supports MSMEs to adopt Green Initiatives. Presently SIDBI has adopted 7 clusters/ ODOP under this project. This information was given by Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha today.
Source: PIB
The Prime Minister, Shri Narendra Modi, presided over the 9th National Handloom Day celebrations at Bharat Mandapam, Pragati Maidan, Delhi today and launched the e-portal ‘Bhartiya Vastra evam Shilpa Kosh - A Repository of Textiles & Crafts’ developed by the National Institute of Fashion Technology. The Prime Minister also visited the exhibition showcased on the occasion and interacted with the weavers. Addressing the gathering of over 3000 weavers and artisans from across the country, the Prime Minister highlighted the contribution of the handloom industry of India and said that the confluence of old and new defines the new India of today. “The India of today is not just ‘Local for Vocal’ but also providing a global platform to take it to the world”, he said. Highlighting the Swadeshi Movement, the Prime Minister said that it was not only limited to boycotting foreign-made textiles but a source of inspiration for the independent economy of India. He said that it was a movement to connect the weavers of India with the people, and this was the inspiration behind the government choosing this day as National Handloom Day. “India possesses a beautiful rainbow of clothing”, the Prime Minister said as he observed the diversity in clothing ranging from the tribal communities in far-fetched areas to people living in the snow-clad mountains, and from people in the coastal regions to those living in the desert as well as the clothing available in the markets of India. He recalled urging the need to enlist and compile the diverse clothing of India and expressed delight that it has come to fruition today with the launch of ‘Bhartiya Vastra evam Shilpa Kosh’. The Prime Minister expressed satisfaction that the schemes implemented for the textile sector are becoming a major means of social justice as he pointed out that lakhs of people are engaged in handloom work in villages and towns across the country. Noting that most of these people come from dalit, backward, pasmanda and tribal societies, the Prime Minister said that the efforts of the government have led to an increase in employment in large numbers along with a boost to income. He gave examples of schemes for electricity, water, gas connection, Swacch Bharat and said that they have received the maximum benefits from such campaigns. Speaking about ‘One District One Product’ scheme, the Prime Minister said that special products from every district are being promoted. “Special stalls are also being set up at railway stations of the country for the sale of such products”, he said. He also mentioned the upcoming Ekta Mall being developed in every capital city of the states by the government to promote handicrafts and products made from handlooms from every state and district under one roof which will benefit those associated with the handloom sector. Shri Modi also touched upon the Ekta Mall at the Statue of Unity which gives an opportunity for the tourists to experience the unity of India and buy products from any state under a single roof. On GeM Portal (Government e-Marketplace), the Prime Minister said that even the smallest artisan, craftsman, or weaver can sell their goods directly to the government and informed that about 1.75 lakh organizations related to handloom and handicrafts are linked to the GeM portal today. He said that efforts are on to ensure that people in the handloom sector get the benefits of Digital India. Earlier in his welcome address at the inaugural function, Union Minister of Textiles, Commerce & Industry and Consumer Affairs, Food & Public Distribution, Shri Piyush Goyal thanked the Prime Minister Shri Narendra Modi for his visionary leadership that has seen the preservation of India’s cultural heritage. He also conveyed gratitude on behalf of the handloom and khadi weavers for providing encouragement and guidance. Shri Goyal recalled that the Prime Minister had declared 7th August as the ‘National Handloom Day’ in 2015 and highlighted the contribution of handloom weavers in the development journey of India. Shri Goyal said that the Prime Minister is the brand ambassador of Indian handlooms all over the world as he often gives Indian handloom gifts to the global leaders. Shri Goyal said that this not only provides recognition to the weavers but also helps in spreading India’s culture across the world. The Minister noted that handloom sector had given India its golden era. He said that #MyHandloomMyPride is not just a slogan but a movement to boost the income of Indian weavers, enhance their dignity and empower them. He noted that Khadi became the symbol of Indian Independence movement and continues to play a significant role in the goal of making India a developed and Aatmanirbhar nation. Shri Goyal said that weavers are not only artists but magicians who take forward the centuries-old legacy of knowledge, skill and art. He said that handloom is not only a tradition but an expression of our identity as each design depicts stories and inspirations passed on over generations. He cited prominent handloom products from different parts of the country and said that the handloom legacy symbolizes ‘Unity in diversity’ and ‘Ek Bharat Shreshtha Bharat’. The event was hosted jointly by the Ministry of Textiles & Ministry of Micro, Small & Medium Enterprises. Union Minister, Micro, Small & Medium Enterprises, Shri Narayan Tatu Rane; Union Minister of State for Textiles and Railways, Smt. Darshana Jardosh; and Union Minister of State for Ministry of Micro, Small & Medium Enterprises, Shri Bhanu Pratap Singh Verma graced the occasion. The Mega Handloom and Khadi celebration brought together people from different corners of the country, including representatives from handloom clusters across India, National Institute of Fashion Technology (NIFT) campuses, Weaver Service Centres (WSCs), Indian Institute of Handloom Technology (IIHT) campuses, National Handloom Development Corporation (NHDC), Handloom Export Promotion Council (HEPC), KVIC institutions and State Handloom Departments. More than 3,000 handloom & khadi weavers, artisans and stakeholders from Textile & MSME sector from across the country participated in the event. The event was also viewed live on Doordarshan by more than 7,500 handloom weavers in 75 clusters across the country. The handloom and khadi weavers put together an exclusive showcase of the hand-woven treasures of India. While walking through the exhibit, the Honourable Prime Minister appreciated the fine craftsmanship and talent of India’s weavers and interacted with the weavers gathered from across the country. "संगठन से सफलता"– a film on the empowerment of weavers underlined the importance of Handlooms as a powerful tool to beat unemployment and poverty. The film showcased the positive impact on the lives and livelihoods of Indian weavers as a result of a more organised and connected ecosystem of skilling, , 10:39 AM Press Information Bureau https://pib.gov.in/PressReleasePage.aspx?PRID=1946421 4/4 marketing and distribution created by the Ministry of Textiles. A special film titled “Khadi for fashion” also showcased the relevance and importance of Khadi from an employment and economic viewpoint. The Prime Minister launched the “भारतीय वस्त्र एवं शिल्पकोष” Textiles & Crafts Repository e-portal, developed by NIFT. The online repository will serve as a one-of-a-kind knowledge platform that will lay down a framework to weave the past and present status of textile, clothing and related crafts with a focus on futuristic developments. The e-portal is a brainchild of the Prime Minister Shri Narendra Modi who exhorted the Ministry of Textiles in 2017 to “catalogue India’s clothing diversity depicting strength and specialities of each region”. The digital portal will also provide access to vast database including research papers, case studies, dissertations and doctoral theses on textiles, clothing and craft related areas. It will serve as a one stop resource, providing information on new developments and current events relating to textiles and crafts. The Prime Minister inaugurated a special three-day exhibition of exclusive handloom, handicraft and khadi products by awardee weavers, cooperative societies, producer companies and women self-help groups from across the country. As part of the National Handloom Day celebrations, various initiatives have been undertaken across the country. Handloom weavers, Entrepreneurs and Handloom organizations (Primary Handloom Weavers Co-operative Societies, Apex Societies etc) from all over the country have gathered at Handloom Haat to display their native handlooms and crafts to more people via stalls displaying Handlooms, Handicraft, Jute items, and Live demonstrations. Another exhibition of Handlooms and Handicrafts has been organized at Dilli Haat with 160 weavers and artisans from different parts of the country getting direct access to customers. As part of creating greater awareness among younger audiences about India’s vast handloom sector, a captivating two-week educational initiative has been organized at the National Crafts Museum. The initiative will provide over 10,000 students from 75 schools with a deeper understanding of Indian handlooms.
Source: PIB
The Micro, Small, and Medium Enterprises (MSME) sector in India has continued to demonstrate resilience and growth, as per the latest information received from the ministry of statistics & programme implementation and the Directorate General of Commercial Intelligence and Statistics (DGCIS), said minister of state for micro, small, and medium enterprises, Bhanu Pratap Singh Verma.In a written reply in the Rajya Sabha, the minister said, according to the data presented by the Ministry of Statistics & Programme Implementation, the share of MSME Gross Value Added (GVA) in India’s Gross Domestic Product (GDP) displayed a fluctuating trend over the last three years. In the fiscal year 2019-20, the share stood at 30.5%, which slightly declined to 27.2% in 2020-21 but rebounded to 29.2% in 2021-22. Similarly, the share of MSME manufacturing output in the overall Indian manufacturing output remained relatively stable, accounting for 36.6%, 36.9%, and 36.2% during the fiscal years 2019-20, 2020-21, and 2021-22, respectively.The export of MSME specified products also showed a similar pattern. Data from the Directorate General of Commercial Intelligence and Statistics indicated that the share of MSME products in India’s total exports experienced a decline over the past three years. In the fiscal year 2020-21, MSME products constituted 49.4% of India’s exports, which decreased to 45.0% in 2021-22 and further to 43.6% in 2022-23. Furthermore, the MSME sector has been a significant source of employment in India. As of August 2, 2023, the Udyam Registration Portal reported that the total number of persons employed in MSMEs registered between July 1, 2020, and August 1, 2023, amounted to an impressive 12,36,15,681. A detailed state-wise breakdown of employment figures can be found in annexure I. To foster the growth and development of the MSME sector, the ministry of micro, small and medium enterprises has been implementing various schemes and programmes. These initiatives encompass a wide range of areas, including credit support, new enterprise development, formalization, technological assistance, infrastructure development, skill development and training, and market assistance to MSMEs. The schemes/programmes inter alia include prime minister’s employment generation programme (PMEGP), credit guarantee scheme for micro and small enterprises (CGTMSE), micro and small enterprises-cluster development programme (MSE-CDP), entrepreneurship skill development programme (ESDP), procurement and marketing support scheme (PMS) and national SC/ST hub (NSSH). The government has also taken several recent steps to provide further support to the MSME sector, such as the Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), Rs. 50,000 crore equity infusion through the MSME Self-Reliant India Fund, and the inclusion of Retail and Wholesale trades as MSMEs. Additionally, initiatives like the online portal “Champions," non-tax benefits for upward changes in MSME status, and the Raising and Accelerating MSME Performance (RAMP) program have been introduced to bolster the sector’s growth. The launch of the Udyam Assist Platform (UAP) on January 11, 2023, has been another significant milestone. This platform aims to bring Informal Micro Enterprises (IMEs) under the formal ambit, enabling them to avail benefits under Priority Sector Lending (PSL).
Source: Live Mint
E-commerce company Flipkart has partnered with the Government of Gujarat through a Memorandum of Understanding (MoU) with the Commissioner of Cottage & Rural Industries, Government of Gujarat, under its Flipkart Samarth program. The tie-up aims at digitizing local businesses that focuses on the development of the crafts in every district and to revive the languishing crafts in the state. Flipkart said its Samarth programme will provide national market access to local businesses through its e-commerce marketplace. As a part of the MoU, Flipkart Samarth and the Cottage & Rural Industries department through its flagship program Hastkala Setu Yojana will support MSMEs, artisans, weavers and craftsmen in scaling their products and contributing to the livelihood generation of artisans and weavers from the state. Balvantsinh Rajput, Minister – Industries, Micro, Small and Medium Industries, Cottage, Khadi and Rural Industries, Civil Aviation, Labour and Employment, said, “This MoU symbolizes a significant step forward in the commitment to empower and uplift the talented local artisans, weavers, and small businesses across our state. E-commerce will empower them to exhibit their products to a wider audience. This strategic alliance perfectly aligns with the Govt. of Gujarat’s vision to drive economic and social progress in our region while cherishing and preserving our rich cultural heritage.” The partnership’s objectives include employment creation prospects, increased market access, linkage, and business inclusion opportunities for artisans and weavers, supporting local artisans with warehousing, account management, cataloging, and more. Flipkart Samarth is a nationwide initiative by the company that has helped over 1.5 million skilled artisan communities set up their business on the Flipkart’s ecommerce platform. The programme was launched in 2019 as a sustainable and inclusive platform to support underserved indigenous communities and businesses with new growth opportunities and better livelihoods.The initiative has so far made multiple strategic engagements with the state and central ministries, departments and entities across India like the Ministry of Rural Development, Department of MSME UP, Department of Industries Jharkhand, Uttarakhand, Industry of Commerce Department, Assam, Tamil Nadu MSME Department, Jammu & Kashmir Trade Promotion Organization, and more.
Source: Financial Express
E-commerce company Amazon India has listed more than 2 lakh unique handmade products across 470 different craft types, impacting 16 lakh local Indian artisans under its Amazon Karigar programme in the past six years, Gaurav Bhatnagar, Head of Seller Acquisition and Development at Amazon India told FE Aspire on Monday. “In 2017, Amazon introduced the Karigar program with the aim of supporting small businesses and micro-entrepreneurs, such as weavers, artisans, and craftsmen, to leverage e-commerce for their growth. This initiative is driven by the intent to encourage digital inclusion, empowering the artisan and weaver community, and offering them economic opportunities by enabling them to become sellers on the Amazon marketplace.”The Karigar initiative helps bring artisans on board the e-commerce marketplace to expand online. The programme provides an extra window for products by local artisans and weavers, to sell their products. Sharing about the collaboration with the government, Gaurav said, “We have collaborated with 30 Government Emporiums and 5 Government bodies to showcase authentic crafts to craft lovers and increase market connectivity. Today, Karigar showcases unique arts and crafts products from over 27 states and union territories, and provides Indian handicraft and artisan communities enhanced visibility by enabling them to sell their products to a large customer base.” Recently, the Karigar initiative signed a Memorandum of Understanding with Rajasthan Grameen Aajeevika Vikas Parishad (RGAVP), an autonomous society under the Rajasthan government, to support the growth of women artisans and the Self-Help Groups (SHGs) across the state. The platform provides the artisans with the facility to access their accounts in nine regional languages, including Bengali, Gujarati, Hindi, Kannada, Marathi, Malayalam, Telugu, and Tamil. During the interaction, Gaurav stated that more than 50 per cent of the karigars on the platform hail from Tier-2 and smaller towns. Having completed its 10 years in June this year, Amazon India currently has more than 12 lakh sellers and has digitized over 40 lakh small businesses, most of which are SMEs. Amazon India plans to digitise 10 million MSMEs by 2025.
Source: Financial Express
In two of our export consignments, the Customs allowed the goods to be exported but held up release of our duty drawback on the suspicion that the goods are overvalued with intent to get higher amount of drawback. We had submitted the data as per the computed value prescribed at Rule 5 of the Customs (Determination of Value of Export Goods) Rules 2007. Later, however, the Customs decided to release the duty drawback based on a lower value determined by a valuation committee at the Customs House in terms of Rule 6 of the above referred Export Valuation Rules. Is this correct? No. The Customs cannot resort to Rule 6 of the said Export Valuation Rules without rejecting the value declared by you in terms of Rule 5 of the said Rules, especially in a situation when you have submitted necessary data to support the basis for adopting the said Rule 5. Secondly, even if the Customs manage to give sufficient reasons to reject the value declared by you, the basis and methodology adopted for determining the value under Rule 6 of the said Rules should be revealed to you, giving you enough opportunities to rebut the same. In this connection, you may refer to the case of Kalima Exim [(2023) 9 Centax 19 (Tri.-Mad)] on the same issue.From our SEZ unit, we want to send our goods for job-work to another SEZ unit. We understand that we have to follow the procedure as per Rule 41 and 42 of the SEZ Rules, 2006. Do we have to follow the procedures as per Section 143 of the CGST Act, 2017 also? Both the SEZ law and the GST laws apply for SEZ units. It is in case of any inconsistency that the SEZ law will prevail by virtue of Section 51 of the SEZ Act, 2006.
What is a seller’s contingency policy in trade transactions?
When goods are sold on FOB or CFR terms, the buyer is required to take out marine insurance policy. Sometimes, it can so happen that the buyer refuses or fails to accept the shipping documents or goods. In such cases, the title to the goods and the risks revert to the seller. If some damage to the goods occurs in such a situation, the seller may find himself without an insurance policy. To cover the marine risks in such situations, the seller may opt for a seller’s contingency policy.
What are the working hours for authorised dealers (ADs) for handling foreign exchange transactions?
Rule 1.1 of the FEDAI Rules, 2019 says that the normal working hours of ADs for foreign currency to Indian rupee transactions for clients is 9 a.m. to 5 p.m. on all days, except Saturdays, Sundays and holidays. However, ADs may undertake transactions for their clients beyond normal working hours also. The transactions for individual persons, including value cash transactions, can be undertaken even on Saturdays, Sundays and holidays, as per banks internal policy.
Source: Business-Standard
Highlighting placements as a key measure of the effectiveness of Industrial Training Institutes (ITIs) in cultivating a skilled workforce, the Parliamentary Standing Committee on Labour & Skill Development urged the Skill Development Ministry to consider the establishment of placement and entrepreneurship cells within ITIs. In its report released on Friday, the committee also advised the integration of ITIs with small and medium-sized enterprises. "Such arrangements can help in maintaining data on placements achieved by ITI graduates, which is of paramount importance," stated the report, which analysed the performance of the Directorate General of Training (DGT).The committee emphasised that placement data is crucial for assessing the real impact of the ITI ecosystem, and for identifying and addressing any weaknesses through policy interventions. "Therefore, the committee reiterates the need for DGT to consider making it mandatory for ITIs to upload data on the employment status of their graduates. It should also commission a study to gather more detailed information on the employment outcomes of ITI graduates," the report suggested.In response to a query about placement figures, the DGT stated that while exact numbers were not available, it is known that a large number of ITI graduates find employment as apprentices in various industries. Some of these apprentices are later taken on as permanent employees, while many others decide to pursue further studies. In addition, the committee noted that the DGT needs to take immediate and effective action to address the challenges faced and to promote new courses in ITIs. These courses should align with industry requirements and the potential of emerging fields like artificial intelligence, mechatronics, data analytics, and others to generate employment opportunities.The committee also expressed concern over the consistent vacancies in ITI instructor positions and low enrolment levels. "The committee expects the DGT and the state governments to work together to address the issue of vacant instructor positions in ITIs. [Regarding enrolments], the committee recommends improving the employability of graduates which can ultimately underpin efforts to reduce poverty, create a more skilled workforce, and provide opportunities for all," the report stated.The DGT, an apex organisation under the Ministry of Skill Development and Entrepreneurship, is responsible for developing and coordinating vocational training programmes in India. It operates vocational training schemes in some specialised areas through field institutes under its direct control. The DGT also frames the overall policies, norms, and standards for vocational training in India, including setting the curriculum, training modules, and assessment criteria for vocational training programmes.
Source: Business-Standard
Prime Minister Narendra Modi has launched the e-portal Bhartiya Vastra evam Shilpa Kosh – A Repository of Textiles & Crafts developed by the National Institute of Fashion Technology (NIFT). He presided over the 9th National Handloom Day celebrations at Pragati Maidan, Delhi and also visited the exhibition showcased on the occasion and interacted with the weavers. Addressing the event, the PM said, “The India of today is not just ‘Local for Vocal’ but also providing a global platform to take it to the world”. “India possesses a beautiful rainbow of clothing”, the Prime Minister said as he observed the diversity in clothing ranging from the tribal communities in far-fetched areas to people living in the snow-clad mountains, and from people in the coastal regions to those living in the desert as well as the clothing available in the markets of India. He recalled urging the need to enlist and compile the diverse clothing of India and expressed delight that it has come to fruition today with the launch of Bhartiya Vastra evam Shilpa Kosh. This Kosh, the online repository will serve as a one-of-a-kind knowledge platform that will lay down a framework to weave the past and present status of textile, clothing and related crafts with a focus on futuristic developments. The e-portal is a brainchild of the PM who exhorted the Ministry of Textiles in 2017 to “catalogue India’s clothing diversity depicting strength and specialities of each region”. The digital portal will also provide access to vast database including research papers, case studies, dissertations and doctoral theses on textiles, clothing and craft related areas. Union Minister of Textiles, Commerce & Industry Piyush Goyal also addressed the event and said that the Prime Minister is the brand ambassador of Indian handlooms all over the world as he often gives Indian handloom gifts to the global leaders. The event was hosted jointly by the Ministry of Textiles & Ministry of Micro, Small & Medium Enterprises, Union Minister, Micro, Small & Medium Enterprises.
Source: Apparel Resources
Gujarat’s chemical and textile industries continue to be shaken by the recession in Europe and the US. These labour-intensive businesses are being overcast by the threat of job losses. Low demand, declining working capital, high input prices, and prolonged payment cycles have all contributed to a bad debt cycle that has compelled businesses to make cost reductions. About 70 lakh people in Gujarat are employed directly and indirectly by the textile industry, while 5 lakh people are employed directly and another 15 lakh are employed indirectly by the chemical sector. According to industry experts, new categories are performing well while more traditional units are experiencing a problem. The apparel and textiles industry has suffered from a fall in demand from global markets as well as a decline in domestic demand since consumers are more careful with their discretionary spending owing to inflation. This has had repercussions all the way up the textile value chain. Gujarat also has significant manufacturing enclaves for intermediates and dyes. The decline in the textile industry has decreased demand for chemicals and dyes. The demand for their exports has also decreased as a result of Europe’s textile industry cutting back on production as petrol prices rise and demand remains subdued.
Source: Apparel Resources
INTERNATIONAL
Bangladesh has overtaken China to become the top readymade garment (RMG) exporter, in terms of volume, to European Union (EU) market for the first time. In 2022, Bangladesh exported 1.33 billion kilogrammes of RMG products to the EU market. Retailers in the EU countries purchased the highest amount of RMG products from Bangladesh in that year, a local newspaper said citing data from Eurostat, the statistics department of the EU. On the other hand, China exported products worth 1.31 billion kilogrammes to the market. The volume of Bangladeshi RMG items shipped to the EU market increased by 21.20 per cent last year, compared to 2021. China exported an 11.86 per cent higher amount of RMG items in 2022 compared to that of the previous year. However, per kilogramme export value of Bangladeshi RMG products is $5.82 lower than that of China. In terms of export value, Bangladesh remains in the second position as RMG exporter to the EU market. China exported RMG items worth $30.15 billion and Bangladesh exported products worth $22.89 billion in 2022.
Source: The Financial Express
Brands are encountering limited options for factories outside the US that can meet their demands for both quality and quantity. In recent years, purchasing from China has presented new challenges for American companies like Actively Black. These challenges include heightened tariffs, disrupted supply chains, factory shutdowns due to Beijing’s Covid Zero policy, and escalating geopolitical tensions. The rising tensions have compelled American businesses to consider the potential repercussions stemming from the possibility of a Taiwan invasion. The rising apprehensions have triggered a significant increase in commitments from executives to lessen their dependence on Chinese suppliers. However, disengaging from China poses considerable challenges. Conversely, producers of lower-tech, lower-margin items such as clothing, shoes, housewares, and luggage encounter challenges when seeking viable alternatives beyond China. Many of these industries require specialised machinery and a skilled workforce, particularly for intricate tasks like sewing a six-needle, flatseam stitch essential for Actively Black’s gear, such as sports bras and shorts, to ensure it doesn’t irritate the skin. Despite increasing tensions, trade between the US and China continues to flourish. In 2022, the US imported goods worth US $ 537 billion from China, just slightly below the record of US $ 539 billion set in 2018. Notably, China remains the leading exporter of apparel to the US, shipping over 10 billion units in the previous year alone.
Source: Apparel Resources
The fashion industry is a major contributor to global pollution, responsible for around 20 per cent of the planet’s wastewater and approximately 10 per cent of the world’s greenhouse gas emissions. In response, the EU is taking steps to address this environmental challenge. The EU remains optimistic that the damaging culture of excessive clothing consumption can be eradicated. To tackle the issue, the EU recently adopted recommendations for their strategy, which focus on making clothes more durable, repairable, and recyclable. Moreover, the EU supports regulations that prioritise human and social rights, label rights, animal welfare, and environmental considerations across the entire supply chain during production. Countries in Africa, like Ghana, also face these challenges. Ghana stands as the world’s largest importer of used garments, importing a staggering 15 million pieces of second-hand clothing each week. The clothing is sourced from charity shops in the UK, US, and China, perpetuating the cycle of excessive clothing consumption. The unending influx of second-hand clothing creates complex environmental and social issues.
Source: Apparel Resources
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Indian Chamber of Commerce (ICC) have agreed to strengthen bilateral trade for the mutual benefit of Bangladesh and India. The development came during the two trade bodies' business-to-business (B2B) meeting at the FBCCI office in the capital's Motijheel area on Monday. Senior Vice-President of FBCCI Mostofa Azad Chowdhury Babu presided over the meeting. Director General of ICC Rajib Singh led the 43-member delegation of his organisation during the meeting with the FBCCI. Senior Vice-President of FBCCI Mostofa Azad Chowdhury Babu said that Bangladesh and India are good business partners. He mentioned that new business opportunities are being created day by day between the two countries, which will help expand the investment partnership between the two neighbours. Moreover, he emphasised that Bangladesh needs a profitable, sustainable and environment-friendly agriculture system to ensure long-term food security, saying that a cold chain infrastructure is vital in this regard. He added that Indian traders may assist Bangladesh in setting up a transmission line to transport power from Bhutan and Nepal to Bangladesh. Besides, he pointed out that a significant quantity of vegetables and spices are cultivated and produced in the north-eastern Indian states, which could be exported to Bangladesh. FBCCI Director Priti Chakraborty called upon Indian entrepreneurs to invest in the health sector of Bangladesh. FBCCI Directors Bijoy Kumar Kejriwal, Hafeez Harun, Akkas Mahmud and businessmen from different sectors of the two countries were present at the B2B meeting.
Source: The Financial Express
