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After extending dates for production-linked incentive (PLI) scheme for textiles, the Government is planning to make it more attractive and might offer greater flexibility under it. The scheme was launched two years ago to boost the domestic manufacturing of man-made fabric garments and technical textiles, with a budgetary outlay of Rs. 10,683 crore. It is being said that the response to the scheme from the textile industry is not as per the expected lines of the Ministry of Textiles (MoT). As per a report from Business Standard, the leading English daily, the MoT has sought the Cabinet’s approval to add more product lines under the scheme. “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,” the report quoted an official. The reason for the decision to offer flexibility in the HSN codes was that textiles is a dynamic industry with regular changing demand for fabrics and changes in fashion. Hence, it isn’t prudent to limit incentives to a select few textile categories. The guidelines of the scheme were first released by the Government in December 2021 and received 64 applications with commitments worth approximately Rs. 6,000 crore. But a year later, seven players backed out because they were not keen on investing in either MMF or technical textiles due to adverse export markets and lack of expertise.
Source: Apparel resources
The textiles department jointly with the Trichy district administration will conduct a sensitisation meeting at the collector’s office on November 22 for entrepreneurs to develop mini textile parks. Officials said the scheme for mini parks was launched to promote the in every district. Under it, the textiles department would provide a maximum subsidy of 2.5 crore to develop immovable infrastructure for units. The state government would also fund the common infrastructure needs. Supportive infrastructure such as a common facility centre comprising labs could also be funded under the scheme. Investors with a minimum of 2 acres of land and a special purpose vehicle (SPV) with a minimum of three members are required to avail of the subsidies. Eligible entrepreneurs will be asked to submit a detailed project report of their proposal to the department to avail the subsidies. For additional information, entrepreneurs can contact 04324-299544 and 98432-12584.TNN We also published the following articles recently The state textiles department in Trichy, India, is organizing a meeting on November 22 to raise awareness among entrepreneurs about the development of mini textile parks in the district. The department plans to provide a subsidy of up to Rs 2.5 crore for the construction of infrastructure for textile manufacturing units, with the state government also contributing to common infrastructure needs. Interested entrepreneurs must have at least two acres of land and form a special purpose vehicle with a minimum of three members to qualify for the subsidies. An Ahmedabad-based textile industry association plans to set up an integrated textile city near Ahmedabad, India. The project will be part of the expansion plans for the Narol textile cluster and will consist of around 130 processing companies spread over 2,000 acres. The city will provide housing, schools, and hospitals for employees and is expected to create around 500,000 direct jobs. The textile city aims to tap into newer export opportunities and is set to start operations by 2027. The association is seeking government assistance for common facilities, single-window clearance, and subsidies for individual units. Sircilla's textile industry, worth Rs 1,000 crore, has become a significant factor in the upcoming Assembly polls in Telangana. The industry, which supports over 18,000 families, has seen a positive turnaround, thanks to the state government's support and orders for free sarees during festivals. The shift from weavers' suicides to reverse migration and abundant work has been attributed to the efforts of BRS Working President KT Rama Rao. However, Rama Rao's rival, KK Mahender Reddy of the Congress Party, claims that Rama Rao has failed to fulfill promises and provide proper infrastructure in the constituency. BJP candidate Rani Rudrama also criticized Rama Rao for his absence in the constituency and promised to ensure the implementation of government schemes if elected.
Source: Times of India
External Affairs Minister S Jaishankar, who is on a five-day official visit to the United Kingdom to give “new impetus to the friendly ties", Monday said India and Britain are currently focusing on a free trade agreement (FTA) and hoped that both the countries would find a "landing point" workable for both of them.The Indian foreign minister said the Agenda 2030 put greater emphasis on connectivity, trade, and working together when it comes to defence and security, health and all climate change. "We are focusing on what is officially called an enhanced trade partnership. In common sense, it’s called FTA (a free trade agreement) and that is today very much the focus of what the Indian and British systems are negotiating and where we hope that we will find a landing point which will work for both of us," Jaishankar said. Both countries have been negotiating a free trade agreement (FTA) since January 2022 with a target to significantly enhance the estimated GBP 36-billion bilateral trading partnership. The FTA talks have undergone 13 rounds of negotiations, and the officials are hopeful of clinching a deal ahead of general elections in both countries scheduled for 2024. Jaishankar also talked about his meetings with newly-appointed Foreign Secretary David Cameron, Defence Secretary Grant Shapps and Home Secretary James Cleverly. He said the foreign Secretary on the first day of his job met him and it was extremely satisfying for him the “commitment and support for the relationship"."We spent a lot of time talking about how to take it forward. I also, of course, met the Home Secretary, recently the foreign secretary and he has been a pillar of strength for the relationship in his previous job. In his current job, we continue to count on him. Again, taking this relationship to a higher level," Jaishankar added.
Source: Live mint
India has urged Singapore and South Korea to speed up the review of trade agreements for concluding the process at the earliest. New Delhi feels that trade agreements signed with Asean and Korea have not benefited Indian exporters much while the other parties have gained substantial markets here. In a meeting with Minister of Trade and Industry of Singapore Gan Kim Yong in San Francisco, Commerce and Industry Minister Piyush Goyal called for expedited conclusion of review of Asean India Trade in Goods Agreement (AIGTA). Singapore is one of the 10-members of Association of SouthEast Asian Nations. At the India-Asean Summit in August in Indonesia both sides had agreed to complete the review by 2025 and hold meetings every quarter to meet that deadline. The trade deficit with Asean widened from $4.98 billion in 2010-11, the first full year of operation of AITGA to $43.57 billion in 2022-23. The widening of the deficit by $17.51 billion in the last financial year is alarming as in 2021-22 the deficit was $ 25.76 billion. Goyal made the request for speeding up the review of the Comprehensive Economic Partnership Agreement (CEPA) withKorea in his meeting with Korean minister of Trade Dukgeun Ahn. India signed CEPA with South Korea in 2009. The agreement brought down tariffs on 90% of Indian goods over the decade, while India reduced taxes on 85 % of Korean goods.Here also India maintains that the trade deal has not helped Indian exports. India’s exports to Korea went up to just $6.6 billion in FY 23 from $ 4.7 billion in 2018-19. Imports from Korea increased from $ 16.7 billion in FY 19 to $ 21.1 billion last year. Goyal is in the US for the meeting of the 14-nation Indo-Pacific Economic Framework (IPEF). Members of IPEF also include Australia, Brunei, Fiji, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, United States and Vietnam. Commerce minister also met US Trade Representative Katherine Tai for a bilateral meeting. “We discussed ways to further deepen our trade and investment ties along with convergence on key WTO (World Trade Organisation) issues for a favourable outcome at MC13 (13th Ministerial Conference,” Goyal said on ‘X’. The Ministerial Conference, which is the highest decision making body of the WTO, meets in Abu Dhabi in February 2024.
Source: Financial express
The Commerce Ministry on November 15 will do a soft launch of the revamped electronic bank realisation certificate (eBRC) for self-certification by exporters to promote ease of doing business for traders. An electronic Bank Realisation is an important document for exporters and is issued by a bank as a confirmation that the exporter has received the payment from a foreign buyer against the export of goods or services. This certificate validates repatriation of export proceeds to the country and ensure compliance with provisions of foreign exchange rules. eBRCs can be generated for outbound shipments of goods, services and deemed exports. According to a trade notice of the Directorate General of Foreign Trade (DGFT), the upgraded system is based on electronic inward remittance messages to be transmitted directly by banks to the DGFT. Based on the messages received, the exporters would self-certify their eBRCs. “The enhanced eBRC system shall enable exporters to reduce transaction time and costs. It would also ease the burden on bankers by simplifying the reconciliation of IRMs with shipping bills, SOFTEX, invoices, etc. and promote ease of doing business in general,” the notice said. Software traders have to fill the SOFTEX form after exports. “A soft launch of the revamped eBRC system is proposed with effect from November 15. Starting from given date, each bank will set its cut-off date based on their readiness after completing user acceptance testing,” the Directorate General of Foreign Trade said. It added that the revamped eBRC system’s user guide and Frequently Asked Questions (FAQs) will be available on the DGFT website. The directorate will also organise exporter outreach programmes to demonstrate and raise awareness about the revamped system. Commenting on the development, Chairman, CII national committee on EXIM, and Managing Director of Patton Group, Sanjay Budhia, said it is a progressive step.
Source: Millennium Post
India, the US and 12 other members of the Indo-Pacific Economic Framework (IPEF) have signed a supply chain resilience agreement that is aimed at helping reduce dependence on China, and shifting production of critical sectors and key goods to member countries. IPEF has 14 members, including India, Australia, the US, Japan, Fiji, South Korea, New Zealand, Singapore and Thailand, representing 40% of the global gross domestic product and 28% of the global trade in goods and services. The agreement was signed on Wednesday in San Francisco, where commerce and industry minister Piyush Goyal is attending the IPEF ministerial meeting. "India joins US and 12 other Indo-Pacific Economic Framework for Prosperity partners to ink the #IPEF Supply Chain Resilience Agreement, a first-of-itskind international agreement that will fortify and strengthen global supply chains, foster adaptability, stability and sustainability," Goyal said in a post on social networking platform X. More Investment,Integrated Supply Chain Members of the bloc concluded negotiations on this agreement, one of the four pillars of the IPEF, on May 27. "The agreement is expected to make IPEF supply chains more resilient, robust and well-integrated, and contribute towards economic development and progress of the region as a whole," the commerce and industry ministry said in a release. The pact will come into force after implementation of the agreement by any five member countries. Goyal emphasised enhanced collaboration to realise the collective aims of IPEF, particularly on the need for mobilising affordable financing for clean economy transition and enhancing technology cooperation. Goyal "also urged early implementation of the envisaged cooperative work under IPEF, including on (the) biofuels alliance suggested by India," the ministry said. The other benefits of the pact include supply chain diversification, mobilisation of investments, deeper integration of India in global value chains, support to micro, small and medium enterprises (MSMEs) and creation of a seamless regional trade ecosystem, which would facilitate the flow of Indian products. Pact Details IPEF is structured around four pillars relating to trade, supply chains, clean economy and fair economy (related to issues such as tax and anti-corruption). India has joined all pillars except that on trade. The supply chain agreement contemplates the establishment of three new IPEF supply chain bodies to facilitate cooperation among the partners. These are the supply chain council, the supply chain crisis response network and the IPEF labour rights advisory board. The proposed advisory board - comprising government, worker and employer representatives, and a subcommittee composed of government representatives - would support IPEF partners' promotion of labour rights in their supply chains, promotion of sustainable trade and investment, and facilitation of opportunities for investment in businesses that "respect labour rights." Officials said the clauses related to labour would not be subject to dispute settlement and are meant as a cooperative mechanism. The trade pillar of IPEF is taking more time to conclude. Members are expected to announce the end of talks for fair economy and clean economy pillars during the week.
Source: Economic Times
INTERNATIONAL
Global fashion retailers including H&M (HMb.ST) and Gap (GPS.N) are committed to raising purchase prices for Bangladesh-made clothing to help factories there offset higher workers' wages, a U.S.-based association representing more than 1,000 brands said, reports Reuters. Bangladesh is the world's biggest garments exporter after China. This week, after deadly protests between police and factory workers, the government mandated an almost 60% raise to the minimum monthly wage to 12,500 taka ($113) from December, the first increase in five years. Factory owners had said the wage hike, which comes ahead of a January general election, would eat into their profit margins by increasing costs 5-6%. Labour accounts for 10-13% of total manufacturing costs, industry estimates show. Asked if they would raise purchase prices by the 5-6% that costs will rise, Stephen Lamar, chief executive of the American Apparel & Footwear Association (AAFA), told Reuters: "Absolutely". "As we and our members have reiterated several times now, we are committed to responsible purchasing practices to support the wage increases," Lamar said in an email. "We also renew our pleas for the adoption of an annual minimum wage review mechanism so that Bangladeshi workers are not disadvantaged by changing macroeconomic conditions." Low wages have helped Bangladesh build its garment industry, which employs about 4 million people. Readymade garments are a mainstay of the economy, accounting for almost 16% of GDP. Even after the increase in minimum wage, which some workers said was too little, Bangladesh lags other regional garment manufacturing hubs such as Vietnam, where the average monthly wage is $275 ($1 = 110.0000 taka), and Cambodia, where it is $250, data from the International Labour Organization shows. Last month, several members of the AAFA including Abercrombie & Fitch (ANF.N) and Lululemon (LULU.O), told Bangladesh Prime Minister Sheikh Hasina they wanted workers’ wages to rise, and to take into account inflation, which is currently at 9%. Lamar also wrote to Hasina in July. Retailers in the United States and Europe are the main buyers of Bangladesh-made clothes. Like most consumer goods retailers, fashion companies are grappling with high inventories and a slowing global economy, where shoppers in key markets are buying less as they feel the pinch.
Source: Textile today
Advancing apparel sustainability requires partnerships and collaborations that redefine the traditional structure of the global supply chain. Companies across the spectrum from fiber to finished product and through to the end user must work together to create apparel that delivers on consumer demands for performance, longevity, comfort, and style while being better for the planet throughout and after useful life. “Partnership is integral to creating the sustainable apparel that significantly reduces our industry’s burden on the environment,” says Michelle Lea, NILIT’s VP global marketing for the SENSIL® portfolio of sustainable premium Nylon 6.6 performance products. “Over the past two years, we have introduced multiple new SENSIL® technologies to target apparel’s sustainability concerns. Our award-winning collaborations with mills, brands, and retailers are bringing these innovations to life and presenting them to a very receptive performance apparel market.” Through collaboration with mill partners, NILIT is proud to have been selected for three ISPO Textrends Awards for Fall/Winter 25/26: Second Layer Top 10 with Pontetorto‘s 9154/M/Bio fabric created with biodegradable SENSIL® BioCare Street Sports Selection with Cifra’s B90MF fabric designed with SENSIL® ByNature, the industry first premium Nylon 6.6 that replaces fossil feedstocks with reclaimed biogas made from recyclyed organic waste Base Layer Selection with Eusebio’s Kimmy Bio fabric with biodegradable SENSIL® BioCare At ISPO Munich in Stand A1.444, NILIT will also showcase the partnership with Jack Wolfskin that resulted in the new Pioneers Collection featuring SENSIL® ByNature. Known for designs that optimize style, function, and sustainability, Jack Wolfskin’s Pioneers Collection seamlessly combines the latest sustainable SENSIL® Nylon 6.6 technology with minimalist design to create a responsible and transparently made range of exceptional apparel built for urban and outdoor pursuits. Please join NILIT and partners for a panel discussion on reducing dependency on fossil resources in apparel through the biomass balance approach. The panel will be held on November 29 at 11:00 at the Sustainability Hub stage.
Source: Textile World
