Union minister Piyush Goyal on Saturday said that the government is supporting the export sector to make it self-sustaining and cost competitive. Addressing Infinity Forum 2.0 virtually at Gujarat Finance Tec-City (GIFT City), Goyal said, “India is aiming to achieve the USD 2 trillion export target by 2030 and in the process it is moving this industry out of the government support to make it self-sustaining and cost competitive.” At the event, Goyal said that the International Financial Services Centre (IFSC) at GIFT City has become a lynchpin in propelling India's export-led growth. “GIFT City will play a pivotal role in powering India's exports to USD 2 trillion by 2030, and then onwards to up to USD 10 trillion that it envisages to see by 2047,” he said. Goyal further added that during the next 2-3 decades we hope to see sustained, inclusive growth, during which we are confident of offering sustainable and inclusive development for every single person in the country. He said India's target of crossing a USD 1 trillion economy in the next three years, having USD 1 trillion of merchandise and USD 1 trillion of service collectively and USD 2 trillion of exports by 2030 will have a massive impact on the country's economy. "This export-led growth will create jobs and work opportunities for youth, give a boost to 'Make In India', further opportunities to Start Up India vision, and encourage new innovators to come up with brilliant ideas," he said. The minister added that towards that hand-holding, we yesterday allocated Rs 2,500 crore for interest equalisation to ensure that our small exporters, MSMEs particularly, continue to get export support in terms of interest equalisation to equate interest between Indian rates and international rates. Goyal said IFSC, in the coming years, will become a big source both for finance and insurance and other aspects of India's growth story.
Source: KNN India
IN NEXT Indian economy’s growth is expected to be 7.5 to 8% in the current fiscal year and 8% in 2024-25, propelled by robust growth momentum, positive sentiments, and increasing private investments, according to Anish Shah, the newly-elected president of the Federation of Indian Chambers of Commerce and Industry (FICCI) on Monday. Shah, also the Group CEO and Managing Director of Mahindra and Mahindra, expressed confidence in the ongoing growth trend, citing the strong momentum of multiple companies investing and expanding capacities. The Indian economy exhibited a growth of 7.8% in the first quarter (April-June 2023-24) and 7.6% in the second quarter (July-September 2023-24), resulting in a cumulative growth rate of 7.7% for the first half (April-September). Shah suggested that the government continue fostering growth momentum to navigate external challenges. He also highlighted the positive sentiment among Indian companies, noting increased investment and capacity addition. Shah stressed the need for companies with deleveraged balance sheets to play a more significant role in the case of a global economic crisis. Regarding the Reserve Bank of India’s decision to maintain the unchanged interest rate for the fifth consecutive time, Shah commended the RBI for its proactive stance, emphasising the importance of keeping inflation under control. He expressed industry readiness to welcome rate cuts once the economy is on a solid long-term trajectory.
Source: Economic Diplomacy
Synopsis The share of MSME products in India's exports increased from 43.59% in FY23 to 45.03% in FY22, with a growth from 49.35% in 2020-21 to 49.77% in 2019-20. The share of MSME manufacturing gross value added (GVA) in India's manufacturing GVA also increased from 40.3% in FY21 to 40.83% in FY22. The number of MSMEs registered in India has reached 3.16 crore, with an employment record of 15.5 crore as of December 6, 2023. The share of export of micro, small and medium enterprises (MSME) specified products in all India exports was 45.56% in April-September 2023, Parliament was informed Monday. The share was 43.59% in FY23 and 45.03% in FY22. It was 49.35% in 2020- 21 and 49.77% in 2019-20. Bhanu Pratap Singh Verma, minister of state for MSME also told the Rajya Sabha that the share of MSME manufacturing gross value added (GVA) in all India manufacturing GVA was 40 83% in FY22 from 40 3% in FY21.
Source: Economic Times
The import duty on cotton in India has had an impact on shipment of Supima cotton to India, said Marc Lewkowitz, President and Chief Executive Officer of Supima. Mr. Lewkowitz, who was in Coimbatore on Monday to take part in the Cotton Day 2023 programme organised by Cotton USA, told The Hindu that the duty was a disincentive for brands that wanted to source products made of Supima cotton in India. The production of Suvin (Indian extra long staple cotton) is very less and there is nothing (in India) to protect by imposing duty on Supima, the extra long staple U.S. cotton. The duty is taking away opportunities for Indian textile mills, he said.
Source: The Hindu
To address concerns on the information and communication technology (ICT) tariffs, the government is looking at limiting the benefit of the lowering of duties to the EU members. India imposes 20% import duty on mobile phones and 15% on telecom equipment. India has sought to settle a long-standing dispute with the European Union (EU) by offering exclusive import duty concessions for certain information technology products, under the proposed bilateral free trade agreement (FTA) with the 27-country customs-cum-monetary bloc. To address concerns on the information and communication technology (ICT) tariffs, the government is looking at limiting the benefit of the lowering of duties to the EU members. Cutting tariffs for those outside the FTA would oblige India to impose similar duties on imports of these products from all countries on a Most Favoured Nation (MFN) basis.
Source: Financial Express
India's textile minister Piyush Goyal has urged apparel exporters to source raw materials from Indian suppliers rather than relying on ‘opaque’ foreign sources. While addressing industry leaders at an event in New Delhi organised by the Apparel Export Promotion Council, he advised against succumbing to ‘predatory pricing’. He awarded the ‘AEPC Excellence Honours’ for 2021-22 and 2022-23 during the event. As the chief guest, Goyal emphasised the importance of building domestic supply chain capacities to sustain the health of India's entire textile ecosystem. He highlighted the significance of every industry element and cautioned against choosing low-cost, substandard goods over domestic products. He clarified that the concept of Aatmanirbhar Bharat (self-reliant India) is about opening India's doors wider, not closing them, by supporting domestic suppliers and developing a domestic ecosystem. Goyal mentioned the ‘40 by 30’ goal, aligning it with Prime Minister Narendra Modi’s vision to make India a developed nation by 2047. He proposed expanding textile exports to $100 billion through collective efforts, noting that increasing readymade garment (RMG) exports from $16 billion to $40 billion by 2030 would significantly benefit the industry. He mentioned the government's initiatives to boost exports, including free trade agreements and promoting brand India. Applauding the industry, Goyal said, “The encouragement we received from the industry led to 55 per cent exports growth from $500 billion to $776 billion in both merchandise and services exports in the last two years between 2021-23.” The event began with the ‘40 by 30’ themed Focus Group Discussion (FDG) covering various topics such as Making Indian apparel more competitive; Strengthening Industry Academia Linkage; Exploring new frontiers with MMF; and Compliance and Sustainability - How to make it India's edge? Rohit Kansal, additional secretary, ministry of textiles, Deepak Seth, founder and chairman, Pearl global industries Ltd, Nitin Prasad, managing director, PVH supply Indian sub-continent and GOC, Dr Ajay Sahai, director general and CEO, FIEO and Naren Goenka, chairman, AEPC discussed the topics with industry experts. Speaking at the power group during the event, Naren Goenka, chairman of AEPC, said, "The Indian apparel industry has been able to withstand the hard and testing times during the pandemic. Despite global demand being stagnant, Indian apparel exports grew at a rate of 30.35 per cent in 2021-22 over 2020-21, and 1.10 per cent in 2022-23 over 2021- 22. While we commemorate this success today, we are also vigilant of the fact that India’s apparel exports have remained constant at around 3-4 per cent of the global export share over the past 3-4 years." One of the major issues affecting the poor export competitiveness of Indian Apparel is the lack of economies of scale. The apparel industry comprises 80 per cent of exporters with a turnover of around ₹10 crore. The average number of machines in Indian apparel manufacturing units ranges from 250 to 400, while competing countries have an average of 800 to 1000 machines. Additionally, there are hardly any vertically integrated units in India, unlike in Vietnam and other competing countries. Both factors limit the industry's capacity to invest in productivity enhancement technologies. Responding to industry queries about scale and infrastructure, Rohit Kansal said, "The global market is a trillion-dollar industry and so even when we reach $100 billion of textile exports, we will only be 10 per cent of total textiles trade. From that perspective, the target $40 billion seems eminently achievable. Our PM MITRA initiative seeks to address the issues flagged by the industry such as scale, investment, and infrastructure. The size of the PM MITRA Park is at least 1,000 acres which is supposed to be vertically integrated. It addresses the issue of land acquisitions as it is acquired. It addresses issues of clearances because all clearances have been provided. It also addresses the issue of state support as special purpose vehicle (SPV) is being headed by state as they run the park.” “We are looking at $10 billion investment in the park and $500 million has already been given either by infrastructure support or development support to the businesses in the park,” Kansal added.
Source: Fibre2fshion
In the midst of challenging economic conditions, Southern Spinning Mills find themselves in dire straits, facing significant hurdles that threaten the stability of the textile industry in the southern region. The prevailing circumstances have placed these mills under immense pressure, posing a threat to their operational sustainability. Economic uncertainties, supply chain disruptions, and increased operational costs have collectively contributed to the distress faced by these spinning mills. The adverse impact of these challenges has been further exacerbated by a decline in demand for textile products both domestically and internationally. As a result, Southern Spinning Mills are encountering financial strain, struggling to maintain regular operations and meet their financial obligations. Industry experts highlight the need for comprehensive support measures to bolster the resilience of the textile sector in the face of these challenges. The situation faced by Southern Spinning Mills underscores the broader economic issues that require strategic interventions to ensure the continued viability of key industries. Stakeholders are closely monitoring the developments, hoping for a collaborative effort to address the immediate concerns and pave the way for sustained recovery in the southern textile sector.
Source: Indian Textile Journal
The full Budget for the next fiscal year, that is, FY25 will be presented in July after the formation of the new government post the General Elections. It is unlikely that the government will make big-bang announcements in the Budget on February 1. Consequently, the chances of announcements of measures that could provide further impetus to the economy and bolster market sentiment are feeble. Nevertheless, analysts believe that the government's announcements to invigorate the manufacturing sector and amplify capital expenditure would wield considerable influence on the Indian economy's trajectory. G. Chokkalingam, Founder and Head of Research at Equinomics Research Private Limited believes the strategic sales of PSUs and the use of that money to increase the capital expenditure further will give a significant boost to the economy. "The strategic sales of PSUs and the use of that money to increase the capital expenditure further will give a significant boost to the economy because our manufacturing GDP has come down to nearly 18-20 per cent," said Chokkalingam. "The government also considering improving the manufacturing sector to generate more rural and semi-urban jobs. In my view, there are many PSUs in the minerals, mining and logistics sectors, which the government need not run. So the government should go for strategic sale and use that money for aggressive capex for promoting the manufacturing sector's GDP share increase," Chokkalingam said. India's economy is in a good shape. India's Q2 (July-September quarter) GDP (gross domestic product) grew 7.6 per cent, significantly exceeding expectations. After its latest policy meet last week on Friday, the Reserve Bank of India (RBI) raised the country's real GDP growth projection for FY24 to 7 per cent from 6.5 per cent earlier with Q3 GDP at 6.5 per cent (against the estimates of 6 per cent earlier) and Q4 GDP at 6 per cent (against the estimates of 5.7 per cent earlier). The real GDP growth projection of the RBI for Q1FY25 is at 6.7 per cent, for Q2FY25 is at 6.5 per cent and for Q3FY25 is at 6.4 per cent. No fireworks in the interim budget Many experts point out that after the impressive victory in the recent assembly elections, the BJP will not be under pressure to present a populist budget. In this case, it will focus more on its fiscal responsibilities. "We don't expect any major announcements in the Vote on Account. The fiscal deficit may be targeted at 5.2 per cent of GDP, halfway between the FY24 Budget estimate and the medium-term target," said Aditi Nayar, Chief Economist, Head of Research and Outreach, ICRA. Ashutosh Tiwari, Managing Director and Head of Institutional Equities at Equirus believes with the election in 2024 around, the upcoming Budget will be balanced. Along with growth orientation, it will also include populist measures with a focus on rural and lower strata of society which have been under distress post-Covid, Tiwari said. "Women welfare schemes like Ladli Behna in Madhya Pradesh are considered to be one of the major reasons behind big wins of the BJP in recent state elections and, therefore, it is quite likely that the government might announce more women welfare-related central schemes in the 2024 Budget," said Tiwari. Nilesh Shah, Managing Director at Kotak Mahindra AMC said, "From an investor perspective, we want accelerated and sustainable GDP growth. That can be achieved by higher infrastructure investment and fiscal prudence. The path to fiscal prudence is through asset demonetisation." "The Budget must also create a level playing field among various savings products from tax, disclosure and investor protection point of view. The budget should carry forward the improvements in ease of doing business by reducing compliance burden," Shah said.
Source: Livemint
One of Turkey’s premier military textile producers and exporters, Raff Military Textile, is expanding into Nigeria. The company specialises in military uniforms, equipment, clothing, fire-fighter uniforms, fireproof equipment, and gendarmerie attire. General Director of Raff Military Textile, Eray Yükseloðlu, expressed the company’s excitement about entering the Nigerian market, saying: “We are thrilled to bring our expertise and resources to Nigeria. Our goal is to cultivate strong business relationships and provide our top-tier products at competitive prices, leveraging our extensive experience in military textiles, fire-fighter uniforms, and fireproof equipment for the benefit of our partners in Nigeria.“Central to Raff’s offerings are high-quality military uniforms, equipment, clothing, firefighter uniforms, as well as fireproof equipment, and gendarmerie attire. Crafted with precision and utilizing state-of-the-art technology, these products underscore the company’s commitment to meeting the stringent requirements of military, law enforcement, and fire-fighting professionals. “Our expansion into the Nigerian market marks a significant stride for both the company and the Nigerian military. With a focus on modernising equipment, clothing, fire-fighter uniforms, and fireproof equipment, Raff’s expertise in military textiles is poised to contribute immensely to the Nigerian army’s goals.”Yükseloðlu also reiterated the company’s enthusiasm, saying: “We are eager to collaborate with the Nigerian military to support them in achieving their objectives. We believe that our products and services, including fire-fighter uniforms and fireproof equipment, will be of great value to the Nigerian military, and we look forward to building a robust alliance with them.”
Source: The Nation
Bangladesh's garment industry grapples with significant challenges in labor-based productivity, evidenced by its hourly output of $3.40, a considerable distance from China, the leading exporter with an hourly productivity of $11.10. Despite being the second-largest apparel exporter in Asia, Bangladesh lags behind seven competitors in hourly productivity, with the exception of Cambodia. The industry's recruitment strategy, focusing on CEOs, EDs, IEGMs, and managers from countries with influential officials in similar positions, has not yielded the anticipated productivity improvements, prompting questions about the failure to establish a robust industry ecosystem domestically. Government agencies report a commendable 3.80% increase in overall labor productivity between 1995 and 2016. However, data from the Asian Productivity Organization (APO) reveals a more modest growth of 2.5% in 20 Asian countries during the same period. Bangladesh's hourly productivity of $3.4 is notably lower than that of several regional counterparts, including Sri Lanka, Indonesia, China, Philippines, India, Vietnam, and Myanmar, posing a challenge to the industry's efficiency. The reasons behind the industry's inefficiencies are:
Source: Textile Today
China's consumer price index (CPI) dropped by 0.5 per cent year on year (YoY) as well as month on month in November this year, according to data from the National Bureau of Statistics. The average CPI from January to November, however, increased by 0.3 per cent YoY, an official Chinese media outlet reported. Non-food prices went up by 0.4 per cent YoY and fell by 0.4 per cent during the month, the data showed.
Source: Fibre2fashion
