INTERNATIONAL
NATIONAL
Tecoya Trend: How has been the performance of the Indian Man-Made supply chain in these interesting times? Mr. BHADRESH DODHIA: Current global ecosystem has been unpredictable and volatile. Advanced economies which are our major export markets have been going through recessionary situations, high inflation, and exorbitant energy costs that in turn refraining buyers and importers from increasing their inventories. The continued Russia-Ukraine war has led to increased freight charges and impacted container availability. In 2021-22 exports were around 46% up compared to the previous year. However, in 2022-23 exports contracted 26% due to economic uncertainties in advanced economies, Russia – Ukraine war, and long-lasting impact on consumer buying behaviour in the aftermath of Covid-19 pandemic. Since last 2 months Manmade Fibre Textiles are showing gradual improvement. During April-Sept 2023 exports were US$2336.39 mn as compared to US$2584.94mn during the same period of the previous year, showing a decline of 9.62%. Contraction in exports are getting narrowed down from a decline of 12.07% in April-July 2023 to a decline of 9.62% in April – Sept 2023. We are expecting further improvement in the coming quarters, although the continued Russia – Ukraine war and the growing tension between Israel and Palestine is a concern. Tecoya Trend: Your opinion of QCO for the entire textile supply chain? Is it advisable? If yes, why? Mr. BHADRESH DODHIA: Quality Control Orders (QCOs) are important for ensuring quality, safety, and reliability in the country. Since SRTEPC represents entire MMF textile value chain including Fibre, Yarns, Fabrics, Made -ups and Technical Textiles, based on feedback and representations received from the members, the Council has appealed to the Government to exempt import of items covered under QCOs against Advance Authorizations. Tecoya Trend: Indian textile export target has been fixed by the government at $100 billion by 2030. Do you think this is achievable? Mr. BHADRESH DODHIA: Currently annual exports of Textiles and Clothing from India are around USD 44 billion. Exports are projected to grow at a CAGR 12% to USD to 100 Bn. USD during 2022 to 2030. MMF textiles and Technical Textiles that fall under the purview of SRTEPC are projected to reach USD 20 Bn. in 2030. I am optimistic that under the leadership of Hon’ble Prime Minister Mr. Narendra Modi, exports will reach new heights. Tecoya Trend: What winning strategies do you suggest the MMF supply chain to imbibe for unfettered growth? Mr. BHADRESH DODHIA: MMF Textiles segment has tremendous growth potential. Globally the MMF and natural fibre consumption ration is 70:30 whereas in India it is 40:60 which is opposite to the global trends. Indian MMF textile segment should adopt international standards and best practices. Although, most of the big textile companies have already been producing international standard MMF textiles and meeting all the compliances, yet many of Indian MSME exporters are lagging. Logistic is a major concern in increasing exports from India. Within India we have structural issues as inputs are produced in different places, final goods are produced somewhere else and ports are in some other places. This digs up a big hole in the exporters’ pockets. The PM MITRA Parks is likely to suitably address the structural issues in the textile value chain and put in place World Class Textile infrastructure. It will also help to position India strongly on the Global textiles map. Internationally, most of our competing countries have advantages with geographical proximity over us which results in long lead time for our exports. To overcome this, I would like to request the Government for taking initiatives to open warehousing facilities in port cities of the major textile markets. Tecoya Trend: The circular economy is gaining popularity as a powerful framework to combat environmental issues and boost economic development. What role should the polyester industry play in these changing times? Mr. BHADRESH DODHIA: Globally leading Retail chain stores have already given targets for sourcing their recycle fibre materials. Accordingly, many companies have are already fallen in line. Tecoya Trend: Traceability is transforming the textile supply chain. Where does the Indian synthetic industry stand on this front and what needs to be done? Mr. BHADRESH DODHIA: Traceability is an important compliance for exporters majorly to EU and to their nominated manufacturers. MMF textile exporters are also providing the Traceability reports to their clients. In SRTEPC we are in the process of having MoU with an international Agency for providing Traceability reports along with providing knowledge services on Traceability. Tecoya Trend: Terms like ‘China Plus One’, reshoring, onshoring, etc. are being commonly heard in interactions across the Indian textile value chain. Will the Indian textile industry benefit from the current situation? Mr. BHADRESH DODHIA: Yes certainly. We are witnessing increased orders coming in including from importers who were earlier sourcing from China. Tecoya Trend: FTAs with developed countries are high on the agenda of the Modi Government. How can the MMF textile industry play a big role in making these FTAs a success? Your opinion? Mr. BHADRESH DODHIA: The MMF textiles segment will be a major gainer from the FTAs. Because of the high wage rates, higher energy costs, shortage of manpower textile activities in the developed economies have shrunk substantially. Therefore, in most of the recent FTAs like India – Australia ECTA, India – UAE CECA MMF textiles exports from India are accorded Duty Free Market Access. Tecoya Trend: What is your opinion on the PLI Scheme and PM Mitra Parks? Will it help the Indian textile sector achieve the desired scale and size? Mr. BHADRESH DODHIA: Both PLI Scheme and PM MITRA Parks Schemes are important for further developing the Indian Textiles industry. PLI Scheme is to promote production of MMF Apparel & Fabrics and Technical Textiles products in the country to enable textile industry to achieve size and scale. PLI Scheme will enhance India’s manufacturing capabilities and boost exports. PM MITRA Parks Scheme which will address the structural issues in the textile value chain and put in place World Class Textile infrastructure. It will help to position India strongly on the Global textiles map. Tecoya Trend: Digitisation is an area which can help optimise the entire value chain in the sector. What is your take on this? Mr. BHADRESH DODHIA: The current age is the Digital age. Digitisation has been proved extremely useful and beneficial right from production to data management to marketing of entire textile value chain. Digital transformation is enabling industry to move beyond the traditional production methods and processes to make clothes, footwear and household textiles. Digital textile printing, for example, produces less waste, requires little set-up and equipment, and uses fewer resources like water. 3D printing also reduces waste as fewer samples, and therefore fabric, are produced. Companies are opting to provide more data to boost transparency across the supply chain. QR codes, for instance, to detail the item’s country of origin and carbon footprint. Information being generated by using analytics to track fashion trends and cycles, helping reduce the number of clothes that end up in landfill. Digitisation also proved extremely helpful to the industry in terms of trade documentation, disseminating information and greatly helping ease of doing business in the country and it has helped in improving India's rank in ease of doing business of World Bank from 142 in 2014 to 63 in 2022. Tecoya Trend: What are your views on the prospects of the Indian technical textiles industry? Mr. BHADRESH DODHIA: There is huge untapped opportunity lying for the Indian Technical Textiles segment. India is an emerging key player in technical textiles segment contributing to a market size of around US$ 19 billion. Technical textiles is a sunrise segment growing fast with wide range of applications across sectors. Technical textiles accounts for approximately 13% of India’s total textile and apparel market and contributes to around 1% of India’s GDP. Technical Textiles have huge potential within India and globally. Current global Technical Textiles market is estimated at around US$ 200 billion in which India shares only 1.5% (US$ 3 billion). and world Technical Textiles market is expected to increase to US$ 220 Bn by 2025. I am confident that our Technical Textiles exports will reach US$ 10 billion and its share in total T & C exports will increase to 10%. Tecoya Trend: Now that SRTEPC has been made the Technical Textile EPC, what plans is the council drawing to increase exports of technical textiles from India. Mr. BHADRESH DODHIA: On behalf of SRTEPC and MMF textile fraternity I thank Prime Minister Mr. Narendra Modi and his team especially Mr. Piyush Goyal, Minister of Textiles, Commerce & Industry and Ms. Darshana Vikram Jardosh, Minister of State for Textiles and Railways for giving mandate to SRTEPC for promotion of export of Technical Textiles also. Under the SRTEPC, the Indian Technical Textiles is about get global exposure to reach out to every nook and corner of their potential uses. In this direction, SRTEPC has already chalked out precise plans including setting up of a Sub-Committee of industry veterans in the segment, establish export infrastructure for promoting Technical Textiles, finalising of HS codes and acquiring real-time data, submission of MAI proposals to organize participation of Members in some of the leading international Technical Textile Shows, Organising of Capacity Building programmes in Textile hubs like Surat, Coimbatore, Bhilwara, Bhiwandi, etc. commissioning of Studies on Global Technical Textile potential, strategy, recommendation, etc. Tecoya Trend: What should be the growth mantra of the Indian MMF textile and clothing sector for the country in the coming years? Mr. BHADRESH DODHIA: More focus on integrated setup and value addition. Export Infrastructure, competitive pricing, product and market diversifications, branding, meeting of quality and delivery commitments.
Source: The Tecoya Trend
Indian textiles maker Raymond eked out a marginal rise in its net profit for the September quarter, despite a delayed festive and wedding season that typically boosts demand. The company’s consolidated net profit for the quarter ended 30th September inched up to Rs. 159.78 crore from Rs. 158.86 crore in the previous year. Revenue from operations, however, grew by 4 per cent year-on-year to Rs. 2,253.4 crore from Rs. 2,168.2 crore in the same period previous quarter. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at Rs. 382 crore, up 7 per cent from Rs. 358 crore in the previous year. “With the onset of festivities and wedding season, we at Raymond are optimistic that there will be an uptick in consumer demand and overall sentiments should remain positive,” said Gautam Hari Singhania, Chairman and MD, Raymond Ltd. “Raymond continues to attest its growth momentum with strong quarter on quarter performance and Q2 FY ’24 was the 9th consecutive quarter that reported the highest-ever performance both in terms of revenue and EBITDA,” the company said. The company’s branded textile segment saw a stable top-line performance during the September quarter, with sales of Rs. 933 crore, compared to Rs. 912 crore last year. The quarter saw a reduced offtake due to postponed festivals and wedding dates, further impacted by the presence of an additional month (adhik maas) in the Hindu calendar this year. Despite these factors, the segment maintained a healthy EBITDA margin of 22.1 per cent. The branded apparel segment achieved significant growth in the second quarter of the fiscal year 2024, with sales reaching Rs. 437 crore, an impressive 18 per cent increase compared to Rs. 370 crore in the same quarter last year. This remarkable growth is attributed to the exceptional performance of the company’s own retail stores and the large format stores (LFS) channel. Garmenting segment sales grew by 18 per cent to Rs. 312 crore in Q2 FY 2024. The business continues to leverage high demand in the US and European markets, the company said.
Source: Apparel Resources
India is considering a plan to allow surpluses in Special Rupee Vostro Accounts (SRVAs) to be invested in corporate bonds in order to give a push to international trade settlement in rupees. Under existing regulations, investment from SRVAs is restricted to government securities and treasury bills. "We have received some recommendations after deliberations with all stakeholders, including banks and trade bodies," an official said. "They are being examined." It has been suggested that allowing investment in corporate bonds through SRVAs will attract more such bilateral agreements, he said. A vostro account is held at a bank on behalf of another lender that's typically located in a foreign country. Earlier this year, Russian officials said that Moscow had accumulated billions of rupees in Indian banks that couldn't be used. Industry estimates peg this amount at $7-8 billion. Until July 2, the RBI had approved 34 applications from different Russian banks for opening SRVAs in 14 Indian commercial lenders. Around 90% of the transactions with Russia are through Sberbank India. An industry executive said annual trade through the SRVA route is pegged at around Rs 8,300 crore, of which 70% is exports with mostly medium and small enterprises using the facility. "There is an apprehension among Russian companies on the rupee-ruble exchange rate, especially when the money would be remitted back to Russia after being invested in government securities," said the executive cited above. "They may find it attractive to invest in corporate bonds in that case." Another executive said a review with banks and financial institutions will be held later this month on the challenges of promoting bilateral payments through the SRVA mechanism. Earlier, the finance ministry had advised banks to form a working group to look into the reasons impeding the widespread adoption of the mechanism and suggest ways to make it popular. "The government is not satisfied with the progress made, and we will be soon submitting our report," said the executive.
Source: Economic Times
The signing of the India-UK free trade agreement, originally slated for Diwali last year, is set to miss this year’s festival too as negotiators are still working on contentious issues including chapters pertaining to rules of origin and intellectual property rights (IPR), two officials aware of the development said. While the talks have gathered momentum — 21 out of 26 chapters have been finalised and negotiations are happening in weekly rounds — there is an urgency to wrap up the deal as India heads for elections early next year. General elections in the UK, meanwhile, will take place latest by January 2025. A government official said India has been able to secure “limited” short-term work permits for its service sector workforce under the movement of natural persons (mode 4) category. Mode 4 refers to services traded by individuals of one WTO member through their presence in the territory of another. It covers employees of services firms and self-employed service suppliers. ADVERTISEMENT The degree of mode 4 market access is “very limited” as it deals with commitments that provide a right of entry and stay only to highly skilled individuals and those transferred from an affiliate of a company with a commercial presence in the UK. The discussion on rules of origin that ensures that products from third countries do not receive FTA benefits unless they undergo “significant transformation” in the exporting country, has been one of the most contentious. After the US, the UK is the largest importer of India’s services making up 17% of India’s total services exports including travel, transportation, insurance, software and financial services. Services are among India’s fastest growing exports, registering a jump of nearly 30% to $267.79 billion from April to January in FY23 compared to $206.27 billion during the comparable period in FY22. “(The) rules of origin (issue) is a crucial concern for India in various categories of products. For instance, there is fear that products from Europe, especially alcoholic drinks such as gin, vodka and Irish whiskey, could make their way into India via the UK. They are dominant in these areas so discussions regarding the same are going on in great detail,” a person aware of the negotiations said. After opening its high tariff market for Australian wines in the India-Australia early-harvest deal that came into effect in December last year, India is expected to bring down tariffs for UK’s Scotch whisky after the initiation of the UK FTA. London is pushing New Delhi to slash the whisky import tariff to 30 per cent from the current 150 per cent over three years. India tends to weigh in favour of more conservative rules of origin compared to most developed countries, leading to extended discussions and negotiations in its FTA talks, including with the UK, said Global Trade Research Initiative (GTRI) cofounder Ajay Srivastava. However, India may need to be more flexible in its rules of origin framework, especially as its firms in sectors like chemicals, electronics, and synthetic textiles are increasingly using imported inputs, he added. Talks on IPR are crucial as India is the world’s largest producer and exporter of generic drugs and affordable generic drugs constitute 70-80 per cent of consumption in the domestic market. The UK, as a leader in life science innovation, is seeking strong IPR protection. But its state-run health system, National Health Service (NHS), also relies on Indian generics to keep costs down. “As a major innovator and manufacturer in the field of pharmaceuticals, the UK has strong offensive interests as regards tightening India’s intellectual property (IP) regime, which has helped to make that country a leading exporter of generic (nonbranded/off patent) medicines. At the same time, though, the NHS, like other healthcare providers around the world, draws significant financial benefit from making extensive use of cheaper generic drugs manufactured in India,” the UK House of Commons’ International Trade Committee report said. The UK has also asked India to reduce duty on car imports to gain access to one of the largest automobile markets in the world. Bloomberg had reported earlier this week that New Delhi is considering a concessional tariff of 30 per cent on 2,500 electric vehicles imported annually from the UK priced above $80,000. India currently levies taxes between 70 per cent and 100 per cent on cars imported as completely built units, depending on their value.
Source: Indian express
India and Japan may explore linking fast payment systems in order to facilitate easier and less expensive cross-border payments, Reserve Bank ofIndia governor Shaktikanta Das said, expanding the list of countries that are working out such arrangements with domestic payment firms. “Linking of the UPI (Unified Payments Interface) with fast payment systems of other countries is also being undertaken. Linkage of fast payment systems of India and Japan may also be explored to leverage the power of fintech and make crossborder payments more efficient and less costly,” Das said on Thursday at the Symposium on Indian Economy 2023 organised by Institute of Indian Economic Studies at the Tokyo Chamber of Commerce and Industry, Tokyo, Japan. In February, India and Singapore had launched a real-term linkage between the UPI and PayNow to facilitate instant and cost-effective cross-border fund transfers. In September, RBI Deputy Governor T. Rabi Sankar has said that the Indian central bank had in July signed a memorandum of understanding with the central bank of the UAE regarding the interlinking of mutual payments and messaging. Acknowledging the critical role played by Japan in building infrastructure in India, Das said that the partnership between the two countries could be strengthened in the sphere of human resources. “There are many collaboration opportunities in frontier technologies such as space technology, artificial intelligence, quantum computing, rare-earths extraction, semiconductors and resilient supply chains, and other areas,” he said. Das reiterated that while financial innovations ushered in by fintech players had augmented ease of payment and lowered cost, they also posed risks and challenges to the financial system. Such risks impact overall financial stability and market integrity, Das said. “We, therefore, intend to play a dual role of acting as promoter of innovation as well as being the regulator. While promoting innovation, our focus is on ensuring a well-regulated ecosystem that addresses systemic risks and challenges,” he said. Das said that India’s headline inflation remains vulnerable to recurring and overlapping food price shocks, although core inflation had moderated by 170 basis points since its peak in January. Core inflation strips out the volatile components of food and fuel. “In these circumstances, monetary policy remains watchful and actively disinflationary to progressively align inflation to the target, while supporting growth,” he said.
Source: Economic Times
An Ahmedabad-based textile industry association has planned setting up an integrated textile city near Ahmedabad and may sign an MoU in this regard at the Vibrant Gujarat Global Summit in January. Narol Textile Infrastructure and Enviro Management (NTIEM) unanimously decided to set up the textile city as part of expansion plans for the Narol textile cluster. Around 130 processing companies will form the textile city, spread over 2,000 acres, at a cost of around Rs 25,000 crore. The city will have housing for all levels of employees from workers to management level personnel and have facilities like schools and hospitals. The project is expected to create around 5 lakh direct jobs. Sources in the association said the current market situation is not favourable but as a cotton textile hub, the textile city will see newer export opportunities in the coming years. They added that the city has been planned accordingly. NTIEM is a representative body formed as a Section 8 company for 138 member companies in and around Ahmedabad’s Piplaj, Narol and Pirana areas. NTIEM runs one of Asia’s biggest common effluent treatment plants (CETP), with the capacity to treat 100 million litres per day (MLD) from member industries. These members process about 2,800 million metres of fabric annually, generating revenue of about Rs 10,000 crore a year and employing 1.5 lakh people. A NTIEM office-bearer said, “The last two years have been challenging for the textile industry but units in Ahmedabad are looking at an average 10% CAGR over the next decade due to expected increase in demand in domestic and export markets. While Ahmedabad has always been among the world’s major textile manufacturing hub which is set to grow at an even faster pace over the next decade, there are three main challenges which we must overcome. These are better infrastructure, transition from treatment and discharge of wastewater treatment to Zero Liquid Discharge and skill development of the working cohort through manufacturing-focused education and training. To meet such requirements, we plan to set up the proposed city around 50 km from Ahmedabad and may sign an MoU at the upcoming VGGS.” The director of a leading processing house said, “All member industries have been workig on this proposal for the last three years and it has been approved at our board meeting. Expansion at our current establishments is not possible so new expansion will be done at the proposed textile city. We want the government to provide assistance in establishing common facilities and single-window clearance for faster process. Also, subsidies to individual units should be provided as per the government policy. If all goes well, we plan to start operations at the city by 2027.”
Source: Times of India
Negotiations for a India-United Kingdom Free Trade Agreement (FTA) are the main focus of ties between the two countries at present, with several “hard bits” that could need intervention at a “senior level”, the British High Commissioner to India Alex Ellis said on November 11, speaking ahead of External Affairs Minister S. Jaishankar’s visit to London this week. He added that British Prime Minister Rishi Sunak is “keen” to visit India, but that the focus on the FTA talks came first. “We’re a lot closer than we were a year ago. We’re batting deep as they would say in the Cricket World Cup, and now we’re on to the big and tricky issues, and they are substantially difficult,” Mr. Ellis said, when asked about a timeline for the FTA to be completed. When asked whether Mr. Sunak’s visit was contingent on the FTA being ready to sign, Mr. Ellis told The Hindu in an exclusive interview that the “Prime Minister [Sunak] is keen to come [to India]. But first of all, we’ve got to focus on the FTA,” pointing to an “intense period of negotiations” that are now ongoing, with officials meeting regularly to work through issues.
FTA talks drag on Mr. Sunak’s proposed bilateral visit to India in October-November is understood to have been put off due to delays in the FTA talks. The talks, that began after Brexit in January 2022, are now in their 14 round, with about five of the 26 chapters still unresolved, sources said. In a telephone conversation last week, Prime Minister Narendra Modi and Mr. Sunak also discussed the progress in the FTA talks. Mr. Jaishankar, who left for the U.K. on Saturday for a four-day visit that officials said was “long overdue”, is expected to be joined by U.K. Foreign Secretary James Cleverly to celebrate the Deepavali festival at the Indian High Commission. The External Affairs Minister will hold several high-level meetings in London to discuss strategic ties, as well as India’s concerns over the issue of Khalistani extremism in the U.K.
Top priority Diplomatic sources have said that the U.K. FTA is India’s top priority at present. Deals with Australia for the Comprehensive Economic Cooperation Agreement (CECA), with the European Union and with European Free Trade Association (EFTA) talks with Switzerland, Norway, Finland and Liechtenstein, as well as with the Gulf Cooperation Council (GCC) are next in line. With election season in India in 2024 and the U.K. headed to polls by January 2025, Mr. Sunak and Mr. Modi are hopeful that the FTA will be completed by early 2024, but have not set any deadline yet. “I think it’s clear both Prime Ministers are signalling to their systems that they want to find a way to get a deal. But there’s no hiding the difficulties,” Mr. Ellis said. The problems include the Rules of Origin, given that the U.K. has an integrated supply chain with the European Union, while India wants to favour goods that include a higher value addition from the U.K. itself. In addition, tariffs over goods like Scotch whiskey and automobiles, including electric vehicles, from the U.K., and leather and textiles from India are among the sticking points. Meanwhile, India has yet to commit to giving legal and financial U.K. firms access to the Indian market. “So what we want to do now is try and boil down the issues to the few big ones which need resolution at a senior level, to cut away quite a lot of the second order issues…and then we can actually focus on the really hard bits at the end,” Mr. Ellis added, clarifying that mobility, or more visas for Indians, are not included in the agreement.
Tackling ‘illegal’ migration When asked about the U.K. decision to put India on a list of “safe states”, effectively disallowing any Indians that enter the U.K. illegally on “small boats” across the English Channel from applying for asylum, Mr. Ellis said that the move was an “autonomous judgement”. The move is a part of the Sunak government’s tightening of regulations for non-legal immigrants, and comes as Indians became the second biggest migrant group crossing the Channel, behind Afghans, in 2022. “To sustain legal migration we have to tackle illegal migration. And at different points in the first quarter of this year, Indians moved up to number two in terms of nationals coming in small boats across the Channel, crossing the English Channel. So you need to tackle that as well,” Mr. Ellis said, adding that Indians are the largest recipients of work visas to the U.K. Students, visitors and skilled professionals received a third of the total number of visas issued, he added
Combating Khalistani extremism Mr. Jaishankar, whose visit comes eight months after a major India-U.K. spat over protests by Khalistani extremists at the High Commission in London, is also expected to raise India’s concerns on the issue, including over the most recent video by the Sikhs for Justice group, banned by India, that threatened any passengers taking Air India flights on November 19. “We’re always keeping under review the list [of extremist groups] and looking at the behaviour of different kinds of groups. I feel that [India and the U.K.] have a better understanding and a more greater confidence on the two sides of how to deal with extremism in different forms in the U.K.,” Mr. Ellis said in the interview. However, he did not confirm whether the U.K. would ban the SFJ as a terror group.
Source: The Hindu
India’s factory output growth fell to a three-month low of 5.8% in September from 10.34% in August due to slower activities in the manufacturing, mining, and electricity sectors, official data released on Friday showed.The growth in the index of industrial production or IIP fell during September, after two months of expansion. While the growth in August was at a 14-month high, factory output rose by 6.03% in July.The factory output growth stood at 3.3% in September 2022. “The growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of covid-19 pandemic since March 2020," said an official statement. According to the data released by the National Statistical Office (NSO), the manufacturing sector output, which has the highest weight in the IIP, grew by 4.5% in September 2023, compared to 9.3% in August 2023. During September, mining production rose 11.5% and electricity output increased by 9.9% but the growth was slower than 12.3% and 15.3%, respectively, in August. The IIP grew by 6% in April-September 2023 compared to 7.1% growth registered a year ago. "The concerning aspect is the sharp sequential deceleration in the manufacturing and electricity sectors. Within the use-based classication, the production of consumer goods decelerated sharply, with modest growth seen in the consumer durables component, " said Rajani Sinha, Chief Economist, CareEdge. "Slowing global growth and downside risks to rural demand remain a cause of concern, " Sinha said, adding that a broad-based and durable improvement in consumption remains critical for the momentum in industrial activity. Consumer durables output rose in September by 1% against a 2.3% fall in the year-ago period. Consumer non-durable goods output rose by 2.7 % in September compared with a 5.7% contraction a year ago. "The overall performance is encouraging and should lead to stable industrial growth for the year. The crux will be picked up in consumption and investment, " Bank of Baroda said in a report on the latest IIP data. "Readymade garments have been a low performer due to exports being low. October has indicated that exports could have turned the corner and if sustained can provide the requisite boost for the textiles sector, "it added. India’s manufacturing activity in October grew at the slowest pace in eight months, dragged down by slowing demand in the consumer goods segment, even as new orders dropped to the lowest in a year and cost pressures intensied, according to a survey by S&P Global Market Intelligence. The purchasing managers index (PMI) for manufacturing fell to 55.5 in October from 57.5 in September. Though the October PMI Manufacturing data was above its long-run average of 53.9, it was the slowest rate of expansion recorded since February. The 50-mark separates expansion from contraction. India’s economy is likely to grow at 6.5% in FY24, according to the Reserve Bank of India’s estimates. However, high input costs and high interest rates, uncertainties over external demand and adverse weather conditions could pose downside risks to growth in the coming quarters. "An unfavorable base, a shift in the festive calendar and excess rainfall caused the year-on-year (YoY) growth in the IIP to nearly halve to a lower-than-expected 5.8% in September 2023 (ICRA’s exp.: +8.0%) from 10.3% in August 2023,'' said Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd. ‘’While the moderation was broad-based across all sub-sectors and use-based categories, the performance of consumer goods was especially tepid at +1.0% and +2.7%, respectively, for durables and non-durables, resulting in the manufacturing sector's performance trailing that of mining and electricity in September 2023,'' added Nayar.
Source: Live mint
INTERNATIONAL
The United States and China are the two global economic heavyweights. Combined, they produce more than 40 per cent of the world's goods and services. So when Washington and Beijing do economic battle, as they have for five years running, the rest of the world suffers, too. And when they hold a rare high-level summit, as Presidents Joe Biden and Xi Jinping will this week, it can have global consequences. The world's economy could surely benefit from a US-China detente. Since 2020, it has suffered one crisis after another the Covid-19 pandemic, soaring inflation, surging interest rates, violent conflicts in Ukraine and now Gaza. The global economy is expected to grow a lackluster 3 per cent this year and 2.9 per cent in 2024, according to the International Monetary Fund. Having the world's two largest economies at loggerheads at such a fraught moment," said Eswar Prasad, senior professor of trade policy at Cornell University, exacerbates the negative impact of various geopolitical shocks that have hit the world economy. Hopes have risen that Washington and Beijing can at least cool some of their economic tensions at the Asia-Pacific Economic Cooperation summit, which starts Sunday in San Francisco. The meeting will bring together 21 Pacific Rim countries, which collectively represent 40 per cent of the world's people and nearly half of global trade. The marquee event will be the Biden-Xi meeting Wednesday on the sidelines of the summit, the first time the two leaders will have spoken in a year, during which time frictions between the two nations have worsened. The White House has sought to tamp down expectations, saying to expect no breakthroughs. At the same time, Prasad suggested that the threshold for declaring a successful outcome is relatively low. Preventing any further deterioration in the bilateral economic relationship," he said, "would already be a victory for both sides.' The US-China economic relationship had been deteriorating for years before it erupted in 2018, at the instigation of President Donald Trump, into an all-out trade war. The Trump administration charged that China had violated the commitments it made, in joining the World Trade Organization in 2001, to open its vast market to US and other foreign companies that wanted to sell their goods and services there. In 2018, the Trump administration began imposing tariffs on Chinese imports to punish Beijing for its actions in trying to supplant US technological supremacy. Many experts agreed with the administration that Beijing had engaged in cyberespionage and had improperly demanded that foreign companies turn over trade secrets as the price of gaining access to the Chinese market. Beijing punched back against Trump's sanctions with its own retaliatory tariffs, making US goods more expensive for Chinese buyers. When Biden took office in 2021, he kept much of Trump's confrontational trade policy, including the China tariffs. The US tax rate on Chinese imports now exceeds 19 per cent, versus 3 per cent at the start of 2018, before Trump imposed his tariffs. Likewise, Chinese import taxes on US goods are up to 21 per cent, from 8 per cent before the trade war began, according to calculations by Chad Bown of the Peterson Institute for International Economics. One of the tenets of Biden's economic policy has been to reduce America's economic reliance on Chinese factories, which came under strain when Covid-19-19 disrupted global supply chains, and to solidify partnerships with other Asian nations. As part of that policy, the Biden administration last year forged the Indo-Pacific Economic Framework for Prosperity with 14 countries. In some ways, US-China trade tensions are even higher under Biden than they were under Trump. Beijing is seething over the Biden administration's decision to impose and then broaden export controls that are designed to prevent China from acquiring advanced computer chips and the equipment to produce them. In August, Beijing countered with its own trade curbs: It began requiring that Chinese exporters of gallium and germanium, metals used in computer chips and solar cells, obtain government licenses to send those metals overseas. Beijing has also taken aggressive actions against foreign companies in China. Orchestrating what appears to be a counterespionage campaign, its authorities this year raided the Chinese offices of the US consulting firms Capvision and the Mintz Group, questioned Shanghai employees of the Bain & Co. consultancy and announced a security review of the chipmaker Micron. Some analysts speak of a decoupling' of the world's two biggest economies after decades in which they relied deeply on each other for trade. Indeed, imports of Chinese goods to the United States were down 24 per cent through September compared with the same period of 2022. The rift between Beijing and Washington has forced many other countries into a delicate predicament: Deciding which side they're on when they actually want to do business with both countries. The IMF says such economic fragmentation' is damaging to the world. The 190-country lending agency estimates that higher trade barriers will subtract $ 7.4 trillion from global economic output after the world has adjusted to the higher trade barriers. And those barriers are rising: Last year, the IMF said, countries imposed nearly 3,000 new restrictions on trade, up from fewer than 1,000 in 2019. The agency foresees international trade growing just 0.9 per cent this year and 3.5 per cent in 2024 down sharply from the 2000-2019 annual average of 4.9 per cent. The Biden administration insists it isn't trying to undermine China's economy. On Friday, Treasury Secretary Janet Yellen met with her Chinese counterpart, Vice Premier He Lifeng, in San Francisco and sought to set the stage for Biden-Xi summit. Our mutual desire both China and the United States is to create a level playing field and ongoing, meaningful and mutually beneficial economic relations, Yellen said. Xi, too, has reason to try to restore economic cooperation with the United States. The Chinese economy is under heavy strain. Its real estate market has collapsed, youth unemployment is rampant and consumer spirits are low. The raids on foreign businesses have spooked international companies and investors. With serious headwinds facing the Chinese economy and many US firms packing up their bags and leaving China, Xi needs to convince investors that China is still a profitable place to conduct business,' said Wendy Cutler, vice president of the Asia Society Institute and a former US trade negotiator. This will not be an easy sell.' Complicating matters is that the tensions between Washington and Beijing go well beyond economics. Under Xi, the Chinese Communist Party has punished dissent in Hong Kong and the autonomous Muslim region of Xinjiang. His government made aggressive territorial demands in Asia, engaging in deadly border clashes with India and bullying the Philippines and other neighbours in parts of the South China Sea it claims as its own. It has increasingly threatened Taiwan, which it considers a renegade Chinese province. US-China tensions could intensify next year with presidential elections in Taiwan and the United States, where criticism of Beijing is among the few areas that unite Democrats and Republicans. Xi's policies appear to be costing China in the battle for world opinion. In a recent survey of people in 24 countries, the Pew Research Centre reported that the United States was viewed more favourably than China in all but two (Kenya and Nigeria) nations. Could China change course? Speaking at the Centre for Strategic and International Studies think tank in Washington, Rep. Raja Krishnamoorthi, an Illinois Democrat who serves on a House committee that monitors China, noted optimistically that Xi has reversed himself before notably in declaring a sudden end to the draconian zero-Covid-19 policies that crippled China's economy last year. We have to give that possibility a chance, even at the same time that we hedge and protect our interests,' Krishnamoorthi said. That's what I'm hoping we also see come out of this meeting.
Source: Business-Standard
MS Printing Solutions & JK Group Pigment Solution reduces CO2 emissions and water consumption in the entire process, it halves printing process steps with chemistry and perfectly manages and reproduces colour charts with an increase in colour yield. What is this solution made up of? Digistar Pigment 4K, JK Group newest and patent pending digital pigment ink. A new formula which doesn’t require pre- and post-treatment. It reduces digital printing process steps by 50%, water consumption by 100% and energy consumption noticeably*. A completely reengineered JP7, a digital scanning printing machine designed to print pigment with the goal to radically reduce water and energy consumption thanks to newly integrated innovative Tech solutions, namely: Zero-Wastewater Recirculation System, Ink Recirculation, the Nozzle Shooting System and Easy- Clean, the new carriage plate. A new dryer designed ad-hoc for this system. It dries and polymerises on the fly; guaranteeing perfect use conditions, the best achievable control and reduction of CO2 emissions during the entire process, thanks to the reduction of space needed for the manufacturing line in the plant. System Plus Software, the new management software that integrates calibration, printing software and ink for a perfect colour management, assuring a colour yield up to 20% higher, while improving efficiency. ITMA Asia is the place to find out more about our full range of inks. Our reactive formulas, which stand out for bright colors, excellent washing and rubbing fastnesses – all encapsulated in our eco-responsible BiB (Bag-in-Box), a flexible PE or multilayer plastic bag, sited inside a cardboard. Our disperse formulas, which boast high light fastness, high duration of outdoor exposure and high fastness to rubbing. Our dye-sub formulas, which assure astonishing and vibrant colors, detail accuracy, first-class image quality and unparalleled colour consistency and vibrancy. ITMA Asia is also a chance to discover our digital printing machines for industrial textile printing. Lario, the first single- pass digital machine in the world; the unique Minilario, one of the world’s fastest scanning machine; the reliable JPK Evo, a high-end reliability industrial printing machine designed for long production runs. ITMA Asia is where to meet the team. We are eager to meet customers and we are looking forward to answering to their questions concerning our products and the change of our organisational business model. Customers increasingly expect premium quality products and services. We aim to deliver a consistent and seamless experience to them.
Source: Textile World
CETIA is a French company that has invented a machine to recycle clothes. It hopes to reduce waste caused by the fashion industry. The machine uses artificial intelligence to scan garments and identify hard elements like zips and buttons that can be cut off using a laser. Without this technology, most clothes are tough to recycle because they are made of materials that must be separated carefully before they are turned into new garments. Most textiles in Europe end up as housing insulation, padding or asphalt for paving roads. CETIA said its AI-laser machine could separate the materials more quickly than doing it by hand – it can sort one piece of clothing in one second. “As long as we do not have systems to prepare materials for recycling, we will not have a recycling sector in France,” saidVeronique AllaireSpitzer, who helps with waste management.
Source: The Scmp.com
