INTERNATIONAL
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After a lukewarm response from private players, the government is set to make the production-linked incentive (PLI) scheme for textiles more attractive by offering greater flexibility under it, and this will, in turn, draw investment and bolster manufacturing in the labour-intensive sector. The textiles ministry has sought the Cabinet’s approval to add more product lines under the scheme. The scheme was launched two years ago to boost the domestic manufacturing of man-made fabric (MMF) garments and technical textiles, with a budgetary outlay of Rs 10,683 crore.MMF includes viscose, polyester, and acrylic, which are made from chemicals. Exporters say MMF apparel currently accounts for a fifth of India’s apparel exports. Technical textile, on the other hand, is a new-age textile that can be used for producing personal protective equipment (PPE), airbags, and bullet-proof vests, and can also be used in sectors such as aviation, defence, and infrastructure. “A cabinet note has been circulated to get approval for bringing more flexibility in the scheme by extending the HSN (harmonised system) codes of MMF to cover as many categories as possible,” an official aware of the matter told Business Standard. The official said the reason for the decision to offer flexibility in HSN codes was textile as such was a dynamic industry and fashion and demand for fabrics kept changing. Hence, it’s not prudent to limit incentives to a select few textile categories.“There were errors while fixing the codes, leading to confusion between artificial and natural fibres. On this, we got feedback from industry players,” the person said, adding that the government hoped for more applications and investment proposals if the changes were made. The textiles ministry had first released the guidelines of the scheme in December 2021. The government had received 64 applications with commitments worth approximately only Rs 6,000 crore. A year later, seven-eight players are backing out because they are not keen on investing in either MMF or technical textiles due to adverse export markets and lack of expertise. Earlier this month, the ministry decided to extend the date for inviting fresh applications under the scheme till December 31.PLI 2.0 The government is in the process seeking cabinet approval for another iteration of the PLI scheme for the textiles sector, with a focus on the apparels segment. The second edition of the scheme will have special emphasis on micro, small and medium enterprises (MSMEs), as the investment limits will be lowered to Rs 50 crore and Rs 25 crore under Part 1 and Part 2, respectively. “The focus of PLI 1 was MMF, while PLI 2.0 will be fibre-neutral as it will be for both natural and synthetic. While it is good that we focused on MMF under the earlier version, we also don’t want to lose ground in our traditional market, which is cotton-based in a major way,” the person cited above said.PLI 2.0 will be funded by the money that has remained unutilised in the first phase. It amounts to nearly Rs 4,000 crore.
Source: Business-Standard
Never before has there been so much of a global surge for trade partnerships with India. The growth of trade and commerce has also given India a unique position in global geo-strategic affairs as well. The upcoming India-UK FTA deal is also expected to strengthen India’s position on the global scale in many ways. The negotiators on both sides are working to ensure that it’s a win-win deal for both the economic powerhouses. The FTA negotiations are at a crucial stage as it enters the final phase. Both Indian and UK negotiators are working overtime to prepare themselves with robust groundwork based on empirical impact assessment of last-minute contingent measures required. The FTA announcement missed the deadline of Diwali 2022 set by the erstwhile British prime minister Boris Johnson, primarily because of political turmoil in the UK and difficulty to find consensus on contentious issues with conflicting interests. However, the ground situation this time seems quite different. There has been a higher level of preparedness, where the entire Indian government machinery—from a junior assistant to the prime minister himself—has burned the midnight oil as a routine rather than an exception. The strong commitment and unprecedented mutual trust between the two PMs Narendra Modi and Rishi Sunak, despite a number of divergent interests and contentious issues between the two countries, is going to be critical to the timely conclusion of the deal. Consequent to the UK’s exit from the European Union, popularly known as Brexit, in January 2020, British trade and investment were affected. To cope with growing economic woes, the British government is actively exploring alternatives not only to boost its trade and economy but also as a face-saving exercise politically. In post-Brexit UK, the FTA with India is being largely perceived as a major prize not only benefitting its trade but also strategically significant to counter China and strengthen its relations with India, world’s largest functional democracy. As the FTA talks enter the final phase, trade negotiations are getting increasingly complex and challenging for negotiators from both sides to reach a consensus, especially on some contentious issues such as rules of origin, tariffs on alcohols, scotch whiskey, data localisation and non-trade issues such as movement of people, visa regulations, services trade, patent laws and climate change. Consensus over rules of origin is getting increasingly difficult as the present-day manufacturing is progressively integrated with global supply chains in a much more complex manner than ever before. Sectors with high import contents from multiplicity of sourcing countries such as electronics, chemicals, synthetic textiles, and so on need due consideration to sensitivities of both the sides. Reciprocity in government procurement is another sensitive area of negotiation that calls for due diligence while concluding the deal, as India, presently, does not have any commitment under government procurement under the WTO and is keen to protect interest of domestic firms. Non-trade issues such as labour, sustainability, climate change, emission etc are indeed complex and offers formidable challenges for Indian negotiators to agree with in view of the ground realities and domestic legal framework. While India is committed to conclude the deal early, the British negotiators should also appreciate the ground realities and move ahead so as to arrive at mutually rewarding trade partnership. The UK is one of India’s important trade partners and is among the few countries with whom India enjoys a trade surplus since 2004. Textile is India’s most important export product to the UK wherein India has a whopping trade surplus of $1.6 billion. This FTA holds enormous potential to facilitate Indian textile industry to increase its competitiveness in the UK market as competing countries such as Pakistan, Bangladesh, and Sri Lanka enjoy free access to the British market under UK’s Generalised Scheme of Preference (GSP). Such tariff concessions are not available to India. Indian textile products such as women’s apparel, shirts, trousers, bed-linens etc, on which 10-12% import duty is levied in the UK are expected to benefit. The trade deal is also expected to benefit the UK industry by enabling it to provide better access to its products in India, the world’s fastest growing major economy and one of the largest markets with 1.4 billion people. British automobiles are likely to be benefited from import duty reduction from 100 % to 50%, or even more for some limited cases. Since India is the world’s largest consumer of whiskey, accounting for half of the world’s whiskey consumption, removal of import tariffs on scotch may also make the British whiskey industry as one of the gainers of India-UK trade agreement as well. This trade deal is much more comprehensive and ambitious as it includes non-trade issues such as digital trade, intellectual property rights (IPRs), government procurement, services trade, labour, etc. India and the UK are very likely to unleash enormous opportunities not only in trade and investment but also in forging strategic international partnership at the world for a, making it a win-win deal.
Source: Financial express
Ahmedabad’s textile processing industry is facing a challenging period, leading to an extended Diwali vacation for many units, lasting around 12-14 days this year. Most units ran at reduced capacities of approximately 50% in the week preceding Diwali, and due to low new orders, many factories are expected to resume production around November 26. The industry is grappling with factors such as weak demand, high inventories held by traders, and increased imports from China, which have significantly impacted domestic production. Last year, processing units were also shut for over 10 days post-Diwali due to subdued demand. Naresh Sharma, former vice-president of Ahmedabad Textile Processors’ Association (ATPA), said, “Overall, the textile industry has been passing through a tough period over the past year and a half. There was a spark in demand for a month prior to Diwali but again orders have dried up for processing units. Most of the units have stopped production activities from Sunday and will restart Diwali deadlines gone, will UK & India ever agree on a trade deal? 1 India likely grew better than expected in Q2 2 Lab-made diamonds grow on buyers this Diwali 3 ADVERTISEMENT production on November 26. There are very few orders because even traders have high inventories.” Narol, one of the biggest cotton textile processing hub in India, houses 138 processing units that collectively process around 2,800 million metres of fabric annually, generating approximately Rs 10,000 crore in revenue and employing around 1.5 lakh workers. Bharat Chhajer, former chairman of Powerloom Development and Export Promotion Council (PDEXCIL), pointed out that South Indian powerlooms ceased production from November 6 due to weak demand and price disparities. “Since around 70% of grey fabric from South India is processed in Ahmedabad, the shutdown of these looms has adversely affected processing houses in the city. Additionally, the high import of fabric from China has contributed to lower orders in the domestic market,” he said. We also published the following articles recently An Ahmedabad-based textile industry association called Narol Textile Infrastructure and Enviro Management (NTIEM) plans to set up an integrated textile city near Ahmedabad. The textile city will cover 2,000 acres and cost approximately Rs 25,000 crore. It will house around 130 processing companies and provide facilities such as schools and hospitals. The project aims to create 5 lakh direct jobs and capitalize on export opportunities in the coming years. The association will sign an MoU for the project at the Vibrant Gujarat Global Summit in January. The textile industry in Ahmedabad is expected to grow at an average 10% CAGR over the next decade. Spikefitness Reduce Belly Fat Within Few Days Recommended by Sweet shops in Kolkata are increasing their production to meet the high demand for traditional sweets during the festive season. Some shops are hiring more staff, while others are using technology to cater to the demand. The popular traditional sweets include rasogolla, kamala bhog, pantua, chom chom, rasmalai, sita bhog, mihidana, rabri, and doi. The traders are anticipating a high demand for Bhai Phonta and are introducing new strategies like adding dry fruits or cream to traditional sweets to attract buyers. Sales of traditional sweets have increased by 14% to 15% during Durga Puja, and the demand is expected to rise further. Actress Helly Shah plans to celebrate Diwali and Gujarati New Year with her family in Ahmedabad this year, taking a break from her busy shooting schedule. She values spending time with her family and prefers not to travel during festivals. Helly has also learned to slow down and not chase projects, believing that what is meant to come will come. She does not want her partner to be from the same industry and enjoys dressing up and indulging in sweets during festivals.
Source: Times of India
Morgan Stanley Research on Monday said it expects India's economic growth at around 6.5% for FY2024 and FY2025, citing strong domestic fundamentals. The research arm of the investment bank, in its 2024 India Economics Outlook, said the domestic demand supported by strength in corporate and financial sector balance sheets and the follow-through of policy reform measures will aid India's growth amid a global slowdown. The latest forecast from Morgan Stanley comes amid an escalation of conict in Israel that threatens to impact oil prices. High oil prices not only increases ination but also results in higher import bills, leading to higher scal decit and balance of trade challenges, which impact the economy. Recently, Moody's Investor Services retained India's economic growth at 6.7% for 2023, citing the country's remarkable resilience amid a global slowdown buoyed by solid domestic demand. The International Monetary Fund (IMF) has also raised its 2023-24 growth projection for India, to 6.3% from its July estimate of 6.1%, citing stronger-than-expected consumption during Q1. The Reserve Bank of India (RBI) estimates growth at 6.5% for FY24. Morgan Stanley expects headline ination to moderate to 4.9% in FY2025 from 5.4% in FY2024. "On the external balance sheet side, we expect the current account decit to remain in a range of 1.5-1.7% of GDP in F2025-26, steady terms of trade, and strength in net service exports, "it said. "India's inclusion in the GBI-EM index from Jun-24 will likely support the balance of payments by augmenting capital ows and thus aiding the funding prole, "it added. In September, JPMorgan Chase & Co. said it will add Indian government bonds to its benchmark emerging-market index from June 2024. The inclusion of Indian bonds in JPMorgan's emerging market debt index is expected to bring in more foreign inows into the country. Meanwhile, Morgan Stanley expects India's central bank, The Reserve Bank of India (RBI), to keep interest rates steady till the rst half of 2024. "However, we maintain our expectation of a shallow rate cut cycle from June-24, driven by visibility of sustained moderation in ination. We build in two rate cuts of 25bps each, which will keep real policy rates averaging at about 100bps in 2024, "it said. "Risks of a delayed start to the easing cycle could emerge from higher commodity prices (especially oil) pushing up ination and/or tighter global nancial conditions weighing on the currency and adversely impacting macro stability, "it added. The RBI has kept the repo rate unchanged at 6.5% since February. However, any surprise outcome in the upcoming general elections in May 2024 could have implications for growth and macro stability, Morgan Stanley said in the report. "A strong political mandate supporting reform measures alongside improvement in external demand would drive faster growth, "it said. "The downside scenarios driven by a delay in the Capex cycle from weaker business condence due to a surprise political outcome or a drag from the external environment, "it added. Morgan Stanley also expects private consumption growth to gather pace in the coming quarters, as the gap narrows between rural and urban demand and between goods and services. It also expects the private Capex to pick up in a sustained manner creating a virtuous cycle of growth, and exports trends to stabilise without being a drag on growth "In our view, an important support for growth expansion to be sustained is a well-calibrated policy response, which helps to maintain a sort of ‘goldilocks’ environment with a healthy trend in growth, moderating ination, and a manageable current account decit, "the report said. "As ination has remained largely within the comfort range of the central bank, the RBI has kept rates steady since Mar-23. Indeed, the rising uncertainty from external factors and tighter global nancial conditions have kept the RBI on vigil with a focus on liquidity management. In our view the RBI will remain cautious and focus on maintaining real rates in positive territory for the domestic economy, "it added
Source: Live mint
INTERNATIONAL
Recycling post-consumer nylons for high-performance applications is possible – and achievable with high product consistency and low energy consumption. Circular Polymers by Ascend leader Maria Field has been tapped by Compounding World Expo to show attendees the possibilities. In her talk titled “Nylon Recycling: A Circularity Story,” Field will discuss how mechanical recycling can convert end-of-life carpet back into usable nylon 6,6 or nylon 6, without the use of added water. With Circular Polymers’ recycling technology, these materials can find new life as fibers or pellets used in new applications, including high-performance engineered materials. The company also recycles polypropylene, PET and calcium carbonate from carpet. “Recycling carpet has never been more efficient or effective,” Field says. “At Circular Polymers, our proprietary process allows us to convert landfill-bound carpet into feedstocks for materials that go into finished goods such as automobiles, electric vehicles, furniture, household appliances and more.” Field’s presentation is scheduled for 2:40 p.m. Nov. 15 at Compounding World Expo Theater Two in Cleveland, Ohio. The show runs Nov. 15-16, and Circular Polymers will co-exhibit with its parent company, Ascend Performance Materials, in Stand A-1208. Ascend experts will be on-hand to discuss ReDefyne™, a line of post-consumer and postindustrial recycled compounds designed for demanding applications, such as under the hood of autos and in electric vehicles. Circular Polymers by Ascend, a recycler of post-consumer carpet, provides the feedstocks for ReDefyne production. It also offers recycled fibers and pellets as feedstocks for compounds and injection molding applications. Earlier this year the company launched Cerene™, a line of recycled polymers and materials. Ascend Performance Materials, a fully integrated producer of durable high-performance materials, is known for its innovations in nylon 6,6. Cerene continues that legacy with offerings in nylon 6,6 while also bringing to market recycled polymers such as nylon 6, PET and PP. “Customers around the globe are seeking consistent and reliable post-consumer recycled materials,” said Maria Field, business director of Circular Polymers by Ascend. “All our feedstocks and Cerene materials come from a mechanical recycling process that minimizes carbon footprint and environmental impact.” Circular Polymers by Ascend has redirected 85 million pounds of carpet from landfills into new goods in its California facility since 2018. Industry recognition includes the Plastic Industry Sustainability Innovation award, Innovation Showcase award from the Association of Plastic Recyclers, Arrow Award from the California Product Stewardship Council and Processor of the Year award from the Carpet America Recovery Effort. Ascend has published its 2030 Vision, a set of nine sustainability targets including a target to reduce waste by 40% and reduce its scope 1 emissions by 90%. The company recently announced two new efforts to reduce the carbon footprint of its products. Field is a leader in the commercialization and manufacturing of recycled products. As the business development director for Circular Polymers by Ascend, she leads the growth of the company’s recycled nylon 6, nylon 6,6, PET, polypropylene and calcium carbonate feedstocks. She previously helped create the carbon neutrality program for Ascend and its customers.
Source: Textile World
The LYCRA Company, a global developer of innovative and sustainable fiber and technology solutions for the apparel and personal care industries, announced today the launch of new LYCRA® FiT400™ fiber for knits. The company’s latest EcoMade offering is a unique bicomponent fiber engineered to optimize the performance and comfort of knits. It delivers a durable soft hand-feel, low shrinkage and high uniformity to fabrics. LYCRA® FiT400™ fiber is made from 60% recycled PET and 14.4% from bio-derived resources and is GRS certified. The fiber includes two different polyester polymers, which together create a helical crimp, providing permanent stretch and recovery properties, as well as breathability, cooling comfort and chlorine resistance to fabrics. LYCRA® FiT400™ fiber helps set the stage for circularity, a key priority for The LYCRA Company. In controlled tests under specific conditions, this fiber was recycled back into new polyester fibers, thereby demonstrating the technical feasibility of this process.* “We developed LYCRA® FiT400™ fiber to deliver in-demand performance benefits and an enhanced soft hand to the knit fabric category,” said Steve Stewart, chief brand and innovation officer at The LYCRA Company. “This innovation also meets customer and consumer expectations for more sustainable solutions since it is made with recycled and bio-derived materials.” LYCRA® FiT400™ fiber will be advertised to the trade. The “It’s Time for Better” campaign aims to disrupt the activewear, athleisure and swimwear categories with the message that consumers and the planet deserve better—better-functioning garments offering reduced environmental impact. Fabrics and garments powered by LYCRA® FiT400™ fiber are eligible for LYCRA® XTRA LIFE™ or COOLMAX® EcoMade brand hangtags if they meet specific brand quality standards. Both brands enjoy high levels of consumer brand awareness worldwide. To learn more about LYCRA® FiT400™ fiber for knits, visit lycra.com. *LYCRA® FiT400™ fiber is compatible with established polyester chemical recycling processes. In multiple tests, LYCRA® FiT400™ fiber components were blended with standard polyester components and recycled back into new polyester fibers with comparable performance as standard recycled polyester fibers.
Source: Textile World
After a turbulent few months in US politics the USFIA’s Washington council and partner at Barnes & Thornburg LLP David Spooner told delegates at the Apparel Importers Trade and Transportation Conference in New York the newly elected House Speaker Mike Johnson is “a relatively new” member of Congress elected to the position after three weeks of negotiations. Speaker Johnson now faces the pending deadline of 17 November, by which point the US government could enter a shutdown unless the new Speaker can negotiate his proposal for temporary government funding. Spooner reassured attendees that even in the event of a shutdown, trade representatives would continue to function, although at a “slimmed down capacity”, which would involve pausing any non-essential initiatives. Ahead of the APEC summit in San Francisco, Spooner also noted recent progress on the Indo Pacific economic Framework for Prosperity, which launched in 2022. Unlike the Trans-Pacific Partnership, which the US withdrew from in 2017, this new initiative does not include any lowered tariffs. In September, the parties involved in the new scheme released a draft text of the supply chain pillar, although Spooner noted that the announcement did not gather much press attention. He attributed this to focus on consultation and lack of enforceable commitments in the text. Spooner described the announcement as “kind of a nothing burger”. Deputy Assistant Secretary for Textiles & Apparel at the US Department of Commerce, Jennifer Knight, said the “co-production” fashion supply chain is the new focus for the US with the CAFTA-DR region being well positioned to grow its fashion sourcing market share. While discussing trade in the US, it was impossible to ignore the topic of China. In recent months, Spooner says there has been “a tonne of dialogue” on the topic. Under the previous Trump administration, the US introduced a number of import tariffs on Chinese products, which still remain in place under the current Biden administration. More than 1,000 plaintiffs, including some represented by Barnes & Thornburg, have joined a case filed against the US government, arguing the Section 301 tariffs on List 4A goods from China were wrongly imposed. Earlier this year, the Court of International Trade ruled in favour of the government. Spooner said the case has now been passed on to the Court of Appeals for the Federal Circuit. The government is due to respond by 21 December. Spooner says he expects a court ruling in spring 2024. The issue of forced labour in the Uyghur region of China was also mentioned. “It’s such a big issue for our industry,” Spooner said. He mentioned National Council of Textile Organisations CEO Kim Glas’ testimony at a congressional hearing, highlighting ways to close the so-called de minimis loophole. In June, the House Select Committee on China wrote to the Post Office, asking for data on the use of customs de minimis as a way to gather further facts on its use. Spooner says the United States Trade Representative has indicated that there may be new product exclusions coming in the next few weeks, although he said that these were likely to be “minor” in the scheme of things. Secretary of commerce Gina Raimondo visited China at the end of August this year and Treasury secretary Janet Yellen spent two days meeting with Chinese vice premier He Lifeng in San Francisco last week. President Xi Jinping is also expected to attend a summit in the city, and is due to meet with President Biden. “This is dialogue to a degree that we haven’t seen,” Spooner said. And while he admitted that dialogue is always a good thing, he said that at one time these meetings would not have been considered significant. “That shows you how well the relationship has fallen between the two countries,” Spooner said. “Whether all this dialogue will result in concrete policy changes, we’ll have to see.”
Source: Just-style.com
Valdese Weavers, the leading producer of decorative textiles in the United States for residential and contract markets, has partnered with global recycled cotton fiber producer, Recover, to transform the home textile industry. The two innovative textile leaders, both at different stages of the supply chain, intend to capitalize on their combined expertise to drive the use of sustainable materials in the industry. Valdese Weavers has more than 100 years of textile experience and works with a full range of furniture manufacturers, distributors, and retailers to deliver unparalleled design through their vertical manufacturing facilities. The company understands the importance of choosing responsible raw materials, and already offers a collection of environmentally conscious products. By partnering with Recover, they can offer the highest quality decorative fabrics made with RCS/GRS verified Recover™ recycled fiber and help brands and retailers to reduce their environmental impact caused by virgin raw material production. Blake Millinor, President of Valdese Weavers, commented: “We are proud to partner with Recover as a natural fiber platform for our customers searching for sustainable fabrics. Recover compliments our sustainable product offering by helping create a more circular material solution. We are excited to be working with the Recover team to tell this unique story and develop more responsible textile solutions for our customers”. Recover has perfected the art and science of scaled production of recycled cotton fiber over more than 75 years, and today, the company is supported by leading institutional investors including STORY3 Capital, Goldman Sachs, Fortress Investment Group and Eldridge Industries. Its recycled cotton fiber is fundamentally transforming the textile industry, making significant environmental savings compared to virgin and organic cotton, and it is one of the most sought-after fibers in the recycled materials space. The integration of Recover fiber into Valdese Weaver’s product lines, enables the textile mill to remain frontrunners in delivering sustainable and innovative fabrics, and accelerate the production of low-impact products such as sofas, cushions, and curtains. Alfredo Ferre, CEO at Recover™, commented: “The textile industry needs new solutions and collaborations across its supply chain, which is why we are excited to team up with Valdese Weavers and expand our product to the upholstery and home textile segment. Our expertise in producing low-impact, high-quality recycled fibers, will help achieve our shared goals in minimizing the impact on the natural resources we share.”
Source: World Biomarketinsights.Com
