India will look to convince the United States (US) that the reimbursements claimed under the Remission of Duties and Taxes on Exported Products (RoDTEP) do not violate the World Trade Organisation (WTO) principles, a senior government official said.The move comes days after Washington imposed a countervailing or anti-subsidy duty on a few Indian products in retaliation against the RoDTEP scheme introduced for outbound shipments in January 2021. Countervailing duties are imposed on imported goods to offset the embedded subsidies that exporters of a particular country avail.
Source: Business Standard
The Gujarat government's industry-friendly policy, investments attracted through the platform provided by the Vibrant Gujarat Global Summit, and the upcoming PM MITRA Park in Navsari are set to boost the state's efforts to promote the textile sector, officials and industry leaders said. With over 60 per cent of the country's denim fabric coming from Gujarat, the state is aptly considered as the textile state of India, they said, adding that the support provided by the state government through its textile policy for the last more than a decade has also contributed significantly to the growth of the sector. Experts say that Gujarat's textile policy has led to technological upgrades, skill enhancement and the development of textile parks, making it one of the most vibrant sectors. They believe that Gujarat's textile industry will position itself as a driving force in the state's economic growth and contribute to India's prominence in the global textile market. According to the state government, the development of PM MITRA Park in Navsari in south Gujarat is poised to attract over Rs 10,000 crore in investments, generating an annual output of Rs 25,000-Rs 30,000 crore. It is expected to elevate the contribution of Gujarat's apparel sector from 3 per cent to 5 per cent, overall textile output from 18 per cent to 22 per cent, and sector exports from around 12 per cent to over 15 per cent, it said. As a precursor to the Vibrant Gujarat Global Summit (VGGS) 2024, the Gujarat government has so far signed 10 MoUs with textile and apparel manufacturing companies with a combined value of Rs 2,844.93 crore. The MoUs pertain to the manufacturing of knitted products, viscose and polyester staple yarn, polyester films, and manufacturing of composite textile unit and denim dyeing and processing unit, a government release said. The state government is progressing well to achieve Prime Minister Narendra Modi's call to make India's textile sector a "world champion" and using every opportunity to give a boost to the sector which has emerged as second only to agriculture in employment generation, it said. "To make a profit in the future, we will have to invest in the local supply chain. This is the way to build a developed India and this is the way to fulfil the dream of a developed India, to fulfil the dream of a 5 trillion economy," Modi had said in one of his speeches. Over the last two decades, the VGGS has been instrumental in providing a platform for notable investments in Gujarat's textile sector. It brings together both domestic and international industry leaders, creating partnerships for projects in the textile industry in Gujarat, industry representatives said. The textile policy launched by the government in 2012 has attracted over Rs 35,000 crore in investment. Supported by pro-industry policy and meetings organised as part of the Vibrant Gujarat Global Summits, the sector witnessed a 2.3 times growth in exports by 2019, said Gaurang Bhagat, a textile business owner. "Because of the meetings organised as part of the Vibrant Gujarat (Summit), the textile sector has seen a lot of improvements. Suggestions were received and beautiful progress made," he said. As a result of such a pro-industry approach, production of cotton spindles in Gujarat increased from 10 lakh spindles in 2012 to 46.3 lakh spindles in 2022-23, he said. Gujarat’s textile policy has led to technological upgrades, skill enhancement and the development of textile parks, with a significant focus on rural employment and women's empowerment, making it one of the most vibrant sectors, industry experts said. In a seminar organised last month in Surat on the theme of 'Future Ready 5F: Gujarat's Textile Vision for Viksit Bharat@2047' ahead of the 10th Vibrant Gujarat Global Summit, Minister of State for Textiles Darshana Jardosh announced a strategic focus on developing the technical textile sector with a commitment to the highest quality. She said that the construction of PM Mitra Park in Navsari is anticipated to propel the textile sector to new heights in employment generation. "The state government has proactively formulated policies addressing labour, industry and textiles, leading to significant advancements in the textile sector," she said, while also underscoring the significance of ready-made garments using man-made fibres. The government is actively promoting the development of the textile sector, she added. During the seminar, Gujarat Minister of State for Industries Harsh Sanghavi said, "The textile sector has surpassed other industries in generating employment, and the state government is dedicated to making it a hub. Our government values diverse opinions and is committed to implementing effective policies." According to Chintan Thaker, chairman of ASSOCHAM's Gujarat Council, the state holds a significant position for textile industry entrepreneurs. The textile sector provides the highest employment after agriculture in the state. In various other sectors, an investment of Rs 1 crore generates employment for 3 to 5 people, while in the textile sector, an investment of the same amount generates employment for 9 to 15 people, he said.The state has encouraged the development of the textile sector through the Production-Linked Incentive (PLI), RoSCTL scheme (Scheme for Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups), and policies related to Goods and Services Tax (GST) by the government, he said. Projects such as PM Mitra Park and Sagar Mala are expected to elevate the contribution of Gujarat's apparel sector from 3 per cent to 5 per cent, overall textile output from 18 per cent to 22 per cent, and sector exports from around 12 per cent to over 15 per cent, the experts said. These proposed projects in and around Surat and Ahmedabad will begin with a projected timeframe by 2025 and are expected to create more than 11,400 employment opportunities, the release said.
Source: Economic Times
India plans to hold discussions with the US to convince it about the WTO compatibility of the popular Remission of Duties and Taxes on Exported Products (RoDTEP) scheme following Washington’s recent announcement of countervailing duties (anti-subsidy levies) on three items exported from India as retaliation against the scheme, official sources have said. “RoDTEP is a perfectly WTO compliant scheme where we are not giving any incentive to our exporters but are only providing them a level playing field by remitting certain local levies and taxes on inputs. We are willing to hold discussions on the issue with the US and have already directed our team to do so. I think we should be able to convince them that RoDTEP doesn’t violate any WTO principle,” a senior government official told businessline. Simultaneously the Directorate General of Foreign Trade (DGFT) and the Directorate General of Trade Remedies (DGTR) will also work with exporters on the documentation to maintain to “satisfy” US officials and avoid penalties, the official added. The RoDTEP scheme, announced in January 2021, refunds embedded duties and taxes, such as VAT on fuel used in transportation, mandi tax and duty on electricity used during manufacturing of the exported items. It replaced the WTO-incompatible MEIS scheme, which was not transparently determined and had faced several challenges from partner countries. Remission rates Since the remission rates under the RoDTEP scheme, mostly in the range of 0.3 per cent to 4.3 per cent, have been “meticulously’’ calculated by a special team, the government is confident that it meets WTO norms. However, recently the US and EU countervailed the RoDTEP scheme in their countervailing investigations against certain Indian exports. In a Lok Sabha reply on December 13, Minister of State for Commerce and Industry Anupriya Patel said the products for which countervailing investigations have been conducted and a final determination of CVD made include paper file folders, common alloy aluminum sheet and Forged Steel Fluid End Blocks by US Certain graphite electrode systems by European Commission (EC). Although the CVD attributable to RoDTEP is not high, it needs to be addressed urgently as it could have greater implications in the future, the official added. While imposing the CVD, the US argued that there was a need for a reasonable and effective system to confirm inputs, consumption amount and imposed indirect taxes. “What the US authorities want is a highly technical kind of report from those who are under investigation. So, the DGFT, in association with the DGTR or the team, is now trying to sensitise exporters about the kind of documentation which they need to maintain to satisfy the US investigating authorities,” another official said
Source: Business Standard
Prime Minister Narendra Modi on Sunday said that he has given a guarantee that India will be the world’s third largest economy under his third term in office and Surat has a big responsibility to facilitate in reaching the milestone. Addressing a public gathering in Surat after inaugurating Surat Diamond Bourse (SDB), Modi said the government has plans for the next 25 years, setting a target to make India a $5-trillion economy and the responsibility of Surat’s diamond industry in achieving that has increased. “You all know that in the last 10 years, India has risen from 10th economic power to number 5. And now, Modi has given a guarantee to the country that in the third term [as PM], India will certainly be among the top three economies,” he said. Modi said the government has set a target for the next 25 years. “Besides the target of a five-trillion-dollar economy… We are also working on taking the country’s exports to a record high. In this journey, the responsibility of Surat, especially its diamond industry, increases manifold…This is a challenge as well as an opportunity,” the Prime Minister said. Modi said that the diamond industry of Surat has been giving employment to eight-lakh people and there will be an addition of 1.5 lakh with the inauguration of SDB. “Today, one more diamond has been added to the grandeur of Surat city. And the diamond is not a small one, but rather the best in the world,” the PM said, adding, “Surat Diamond Bourse shows the abilities of Indian designers, Indian material, and Indian concept. This building is a symbol of New India’s new capabilities and new resolve.” He said that the people connected with the diamond industry used to approach him for the resolution of their problems. “World Diamond Conference was held in Delhi in 2014. And it was then that I announced the establishment of a special notified zone for the diamond sector. And it paved the way for realising the dream of SDB. We also made amendments to the law…Today, in the form of SDB, a whole big centre of international trade has come up. Whether it is raw diamond, polished diamond, lab grown diamond or jewellery. Today, it has become possible that business of every kind has been possible under one roof. SDB has become a one-stop centre for all,” Modi added. The PM said that Surat has given a lot to Gujarat and the country and there potential for more. “India’s share in the world’s gems and jewellery exports is 3.5 per cent. If Surat is determined, it can achieve double-digit figures. I guarantee you that the government will support you. We have selected this sector as a focused area for export promotion. Central government is working on promoting patented designs, diversifying products for exports, research work with other countries, promotion of lab-grown and green diamonds. To promote green diamonds, a special provision has been made in the budget,” he said. The Prime Minister then said, “Today, conditions are in India’s favour… Entire world is discussing India. ‘Made in India’ has become a strong brand… therefore, I ask all of you to make a resolve and achieve it.” He further said that the government is all ready to strengthen Surat in every aspect. Earlier in the day, the PM also participated in a roadshow and also inaugurated a new terminal building of Surat airport. The Surat airport has now got the status of an international airport.
Source: Indian Express
Exports may have fallen 5% in 2023 India’s merchandise exports in 2023 would not buck the larger global trends and are set to contract 5.3%, according to an analysis by trade policy think tank. But the performance of electronics segment stands out, giving indications that support measures might work for other priority sectors too. According to the United Nations Conference on Trade and Development, global exports would see a contraction of 5% as China has reported a 5.2% drop in merchandise exports in January-November. In 2023, India’s merchandise exports decreased to $429 billion from $453 billion in 2022, a fall of 5.3%, while the decline in imports was deeper at 7% to $669.6 billion, according to the projections by Global Trade Research Initiative (GTRI). Services exports increased 10.5% on year to $333.6 billion, while services imports were stable at $176.4 billion. The services sector helped India record an overall exports growth of 1% at $763 billion. As fall in imports is more than exports, the overall trade deficit (merchandise and services) will decline to $82.8 billion from $141.3 billion. Within India’s export basket, 78% of the products by value are expected to decline 11.6% on year in 2023 to $320 billion. “The decline can be attributed to weak global demand and India gradually losing competitiveness in labour intensive sectors,” the GTRI analysis said. The high priority items that have seen a decline in 2023 are engineering and petroleum products that account for almost 50% of total exports by value. Following closely behind are chemicals, gems and jewellery, textile and garments, leather, handicrafts, carpets and some agriculture products. During the year, smartphones emerged as a major success story for India, with its exports projected to surge to $13.9 billion in 2023 from $7.2 billion in 2022. This significant increase contributed to the overall rise in electronics exports, which reached $26.8 billion, marking a growth of 26.2%. There has been a noticeable increase of 25% in import of electronic components to $30 billion in 2023. This has impacted imports of finished electronic products like computers, laptops, and other hardware as they dropped from $13.8 billion in 2023 from $15.4 billion last year. “These trends indicate early success of the production-linked incentive scheme and suggest strengthening of India’s electronics manufacturing capabilities,” author of the analysis and co-founder of GTRI Ajay Srivastava said. Success in electronics underscores the necessity for India to adopt a similarly focussed strategy to rejuvenate exports in labour-intensive sectors. Small firms active in these sectors face 10-15% cost disadvantages vis-a-vis the competition due to high cost of capital, low quality grid power, delays at the ports and higher compliance cost. However, PLI is not an answer to product categories like textiles. leather and handicrafts where thousands of firms make the same products as it will put non-recipients to disadvantage. “A horizontal scheme extending 2-3% incentive to every firm in the sector will help in meeting some of the cost disability,” Srivastava added.
Source: Financial Express
NEW DELHI: The commerce ministry has started an exercise to help Indian exporters keep proper documentation to deal with US countervailing duty cases on domestic products, an official said. As part of the exercise, teams of the directorate general of foreign trade (DGTR) and directorate general of trade remedies (DGTR) are working on a roadmap to work on the kind of documentation that needs to be maintained by Indian exporters. Before imposing countervailing or anti-subsidy duty (CVD), a country carries out detailed investigations on products which it believes that its trading partner is subsidising for export purposes. Subsidising exports is a kind of unfair trade practice. Countervailing duties can only be imposed if the investigating agency of the importing country determines that the imports of the product in question are subsidised and are injuring a domestic industry. Imposition of this duty does not prohibit or restrict imports. World Trade Organisation (WTO) allows its member countries to use these tools to provide a level-playing field to their domestic players.The US has conducted countervailing investigations and submitted final determination on three Indian products -- paper file folders, common alloy aluminium sheet, and forged steel fluid end blocks.The European Commission too has conducted a similar probe on certain graphite electrode systems from India.The Indian government and the affected exporters have strongly defended the subsidy allegation against various programmes and schemes of the government, both at central and state level, in their written and oral responses during the conduct of investigations, the official said. While imposing CVD, it has been stated that there is a need for a reasonable and effective system to confirm inputs, consumption amount and imposed indirect taxes. The official said that products which the US have investigated involved reimbursement of levies like electricity duty, VAT on fuel or APMC taxes.These levies are reimbursed under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), a WTO-compliant measure."What the US authorities want is a highly technical kind of a report under the investigation. So what we are trying to do is that in association with the DGTR and their team, we are now trying to sensitise exporters about the kind of documentation which they need to maintain to satisfy the US investigating authorities," the official who did not wish to be named said. The DGFT has recently held a meeting with the DGTR on the issue. "Now we are working on a roadmap as to what kind of documentation should be maintained by our exporters so that our exporters are able to produce those documents before the investigating authorities. In addition to that, a certain random test check by Indian authorities would also be required. So on both these steps, we have initiated action," the official added. RoDTEP scheme has been implemented for exports from January 2021 to refund, currently un-refunded taxes/duties/ levies, which are not being refunded under any other mechanism, at the central, state and local level, but which are incurred in the process of manufacturing and distribution of exported products.The scheme is being implemented by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, in an end-to-end IT environment.
Source: Economic Times
China reported Friday its industrial output expanded at the fastest pace since February 2022 in November, though retail sales growth missed expectations, pointing to a patchy recovery in the world’s second-largest economy. Economists are approaching the China data with some caution, given a low base effect. The country was in the final months of its stringent zero-Covid curbs in the last quarter of 2022, which had adversely impacted the economy. “The data is a mixed bag,” Miao Ouyang, Bank of America’s Greater China economist, told CNBC. “If you look at the whole set of data, it still shows that domestic demand is still on the weak side and [the government] still definitely needs to do more to stabilize the economy.” China’s industrial output grew 6.6% in November from a year earlier, according to the country’s National Bureau of Statistics Friday. This outpaced expectations for 5.6% in a Reuters poll and follows a 4.6% rise in October. Retail sales climbed 10.1% in November from a year ago, the fastest pace of growth since May — though analysts had expected a 12.5% spike following a low base in 2022. Retail sales rose 7.6% in October. “Year-on-year growth in retail sales also rose in November, thanks mainly to faster automobile and Covid-sensitive restaurant sales growth on the back of favorable base effects, although this is well below market (high) expectations and implies a negative sequential growth,” Goldman Sachs economists led by Lisheng Wang wrote in a note. Fixed asset investment in urban areas cumulatively grew 2.9% in the first 11 months of the year, compared with expectations for 3% growth. China’s urban unemployment rate stayed at 5% in November. Hong Kong shares, among this year’s underperformers in Asia Pacific, saw gains briefly accelerate after the release of Friday’s data. The Hang Seng pared those gains to eventually close up 2.4% on the day. The CSI 300 benchmark of the largest blue chips listed in Shanghai and Shenzhen gave up modest gains to close down 0.3% on the day.
Still fragile
The post-Covid recovery of the world’s second-largest economy has so far fallen short of expectations, plagued by a festering real estate crisis, debt risks and chronic youth unemployment. A slew of policy support measures have not sufficiently lifted economic sentiment, igniting calls for Beijing to amp up its stimulus amid fears of a deepening slowdown. Still, there are several green shoots that point to Beijing’s focus on growth, while also underscoring the depths of the real estate malaise. On a cumulative basis in the first 11 months, investments in infrastructure and manufacturing increased 5.8% and 6.3%, year-on-year, respectively; retail sales rose 7.2%, while real estate development investment dropped 9.4%, China’s NBS said. Official data released earlier Friday showed that China’s new home prices fell for the fifth straight month in November, underscoring weak confidence in demand and investment as some of the largest real estate developers are facing serious debt problems as Beijing strives to deleverage its once-bloated real estate sector. A raft of recent economic data has demonstrated softening domestic demand, which was among the core focuses of a document that China’s leaders released Tuesday evening at the end of a meeting charting economic priorities for 2024. Previously, data showed China’s consumer prices fell in November at their fastest rate in three years, while producer price deflation extended into the 14th month. In U.S. dollar terms, imports fell by 0.6% year-on-year, missing Reuters’ forecast for a 3.3% rise.
Source: Textile Today
After two years of rigorous testing and close collaboration with industry leaders, Aware has announced a groundbreaking achievement – the successful integration of the Aware tracer into recycled polyester filament yarn. This marks a significant milestone in the world of sustainable textiles and reaffirms Aware´s commitment to transparency in the fashion and textile industry. It may be noted here that Aware is an award-winning global traceability solution for the fashion and textile industry. The business was founded in 2020 by two Dutch sustainable fashion experts with 25+ and 10+ years of industry experience. Working hand in hand with market professionals Avient Corporation Shanghai and Zhejiang Haili Environmental Technology Co., Aware has realized the exchange of truly recycled polyester filament yarn embedded with the Aware tracer, ensuring traceability from yarn production to the final product. This monumental achievement places Aware at the forefront of innovation in sustainability, delivering the world's first full infield-traceable recycled polyester. The Authenticity of Recycled Polyester Products The key to this advancement lies in the Aware tracer, which can now be detected infield using the Aware hand scanner, providing an unprecedented level of transparency and traceability. Brands, retailers, and consumers can now have complete confidence in the authenticity of recycled polyester products. Zhejiang Haili Environmental Technology Co. and Wujiang Chaodai Textile Co. in China are the spinners set to offer recycled polyester filament yarn with Aware tracer. More spinners in Bangladesh and India will follow shortly. Feico van der Veen, Founder of Aware, expressed his enthusiasm for this achievement, stating, "Our vision has always been to maximize traceability to minimize our collective impact. This breakthrough represents a significant step towards a more sustainable future, where consumers can make informed choices, and brands can genuinely demonstrate their commitment to sustainability, now also for recycled polyester." The Aware Virtual ID for upcoming legislations To support this milestone, Aware is proud to offer a Digital Product Passport (DPP) for products made with this innovative recycled polyester yarn. This passport empowers consumers to verify the authenticity of their purchases, reinforcing the company's mission to restore trust in sustainability textiles. In addition to this transformative achievement, Aware is fully aligned with upcoming European Union (EU) legislations, including the EU Green Deal. The DPP serves as a powerful tool to meet these regulatory requirements, ensuring that brands and manufacturers are prepared for the changing landscape of sustainability standards. With this landmark accomplishment, Aware once again leads the charge in transforming the fashion and textile industry, demonstrating that sustainable innovation and transparency are the keys to a greener and more accountable future. Further, Aware has announce that partner XD Connects, a leader in the promotional goods industry, will be implementing Aware technology into their recycled polyester products next year. This expansion of Aware's impact reinforces its commitment to promoting traceability in diverse product lines. To showcase this latest innovation, Aware will be participating in the PPAI (Promotional Products Association International) Expo 2024 in Las Vegas from January 16-18.
Source: Tecoya Trend
Secondary data at a disaggregated level on most components of logistics cost estimation, including costs related to transportation, warehousing, storage, auxiliary support services, packaging, insurance and other administrative operations, is not available in India, according to a recent report by the department for promotion of industry and internal trade (DPIIT). Lack of data in public domain for the critical components of logistics cost implies that unofficial and floating estimates of India’s logistics cost lack credibility, Sumita Dawra, special secretary in DPIIT’s logistics division said at the launch event of the report, titled ‘Logistics Cost in India: Assessment and Long-Term Framework'. Logistics cost has serious implications for the country’s manufacturing sector, export competitiveness and global ranking, she added. The report has been prepared by the National Council of Applied Economic Research (NCAER) with guidance from the Asian Development Bank experts. It presents a baseline aggregated logistics cost estimate and a framework for long-term logistics cost calculation.It recommends a hybrid approach using primary (covering all trade flows, product types, industry trends, etc.) and secondary survey data, as well as real-time big data to provide an estimate of logistics cost. To ensure evidence-based decision making for improving logistics efficiency, logistics costs should be estimated on a regular basis, preferably on an annual basis, the department said in a release. This requires institutionalising the process of data collection in a systematic and periodic manner, for which a memorandum of understanding with NCAER is planned.
Source: Fibre2fashion
The Uttar Pradesh government is acquiring defunct textile mills for fresh allotment to the industry. According to estimates, prime land assets of over 1,000 acres are locked in these units across the state. These units are operated by state-owned entities like UP Cooperative Spinning Mills Federation, UP State Textile Corporation Limited, UP State Spinning Company Limited, and UP State Yarn Company Limited. These defunct units collectively owe liabilities of almost Rs 3,000 crore to different agencies, including financial institutions, and have little chances of revival. UP Industrial Development Minister Nand Gopal Gupta Nandi had announced the state intended to acquire the land parcels for allotment to investors after settling their outstanding liabilities. While the state has waived Rs 500 crore debt on these units, the requisite funds to wipe off the remaining debt would be raised through auction, sources said. UP Cooperative Spinning Mills Federation alone has over 700 acres of land spread across districts. Meanwhile, the proposed restricting action plan includes setting up of an MSME industrial park in the Kanpur region, which is among the most industrialized and textile hubs of North India. The government is bracing up for a mega groundbreaking ceremony to launch projects worth almost Rs 10 trillion. Since the industry has flagged the urgent requirement of land for setting up units, the UP government is pulling all stops to ramp up industrial land bank in the manufacturing and commercial hubs.
Source: Business Standard
India’s overall exports—merchandise and services combined—in November this year were estimated to be worth $62.58 billion, exhibiting a positive growth of 1.23 per cent year on year (YoY). Overall imports in the month was an estimated $67.88 billion, exhibiting a negative 6.16-per cent growth YoY. India’s overall exports in the April-November period this year were estimated to be worth $499.46 billion, exhibiting a negative 1.39 per cent growth YoY. Overall imports in the eight-month period were worth an estimated $560.90 billion, exhibiting a negative 7.58 per cent growth YoY. The overall trade deficit has shown considerable improvement between April and November. Overall trade deficit during the period was an estimated $61.44 billion compared to $100.38 billion during the corresponding period last year, registering a decline of 38.79 per cent, an official release said. Merchandise exports in November were worth $33.90 billion compared to $34.89 billion in November 2022. Such imports in November were worth $54.48 billion compared to $56.95 billion in the same month last year. Under merchandise exports, 15 of the 30 key sectors exhibited positive growth in November compared to same period last year. These include cotton yarn and fabrics, made-ups and handloom products that recorded a growth of 6.33 per cent, and handicrafts and exclusive hand-made carpets that saw a growth of 1.17 per cent. Under merchandise imports, 15 out of 30 key sectors exhibited negative growth in November. These include raw and waste cotton (minus 37.4 per cent); and textile yarn, fabric and made-up articles (minus 7.54 per cent). Merchandise exports for the eight-month period were worth $278.80 billion against $298.21 billion during the corresponding period last year. Merchandise imports during the period were worth $445.15 billion compared to $487.42 billion during the same period last year. The merchandise trade deficit for the April-November period this year was an estimated $166.35 billion compared to $189.21 billion during the same period last year, registering a decline of 12.08 per cent. Under merchandise exports, 14 of the 30 key sectors exhibited positive growth during the eight-month period compared to the same period last year. These include cotton yarn, fabrics, made-ups, handloom products etc. (5.72 per cent). Under merchandise imports, 16 of the 30 key sectors exhibited negative growth during the eight-month period compared to the same period last year. These include raw and waste cotton (minus 63.97 per cent); textile yarn and fabric, made-up articles (minus 15.57 per cent); and leather and leather products (minus 9.33 per cent).
Source: Fibre2fashion
China reported Friday its industrial output expanded at the fastest pace since February 2022 in November, though retail sales growth missed expectations, pointing to a patchy recovery in the world’s second-largest economy. 1Economists are approaching the China data with some caution, given a low base effect. The country was in the final months of its stringent zero-Covid curbs in the last quarter of 2022, which had adversely impacted the economy. “The data is a mixed bag,” Miao Ouyang, Bank of America’s Greater China economist, told CNBC. “If you look at the whole set of data, it still shows that domestic demand is still on the weak side...and [the government] still definitely needs to do more to stabilize the economy.” China’s industrial output grew 6.6% in November from a year earlier, according to the country’s National Bureau of Statistics Friday. This outpaced expectations for 5.6% in a Reuters poll and follows a 4.6% rise in October. Retail sales climbed 10.1% in November from a year ago, the fastest pace of growth since May — though analysts had expected a 12.5% spike following a low base in 2022. Retail sales rose 7.6% in October. “Year-on-year growth in retail sales also rose in November, thanks mainly to faster automobile and Covid-sensitive restaurant sales growth on the back of favorable base effects, although this is well below market (high) expectations and implies a negative sequential growth,” Goldman Sachs economists led by Lisheng Wang wrote in a note. Fixed asset investment in urban areas cumulatively grew 2.9% in the first 11 months of the year, compared with expectations for 3% growth. China’s urban unemployment rate stayed at 5% in November. Hong Kong shares, among this year’s underperformers in Asia Pacific, saw gains briefly accelerate after the release of Friday’s data. The Hang Seng pared those gains to eventually close up 2.4% on the day. The CSI 300 benchmark of the largest blue chips listed in Shanghai and Shenzhen gave up modest gains to close down 0.3% on the day. Still fragile The post-Covid recovery of the world’s second-largest economy has so far fallen short of expectations, plagued by a festering real estate crisis, debt risks and chronic youth unemployment. 14A slew of policy support measures have not sufficiently lifted economic sentiment, igniting calls for Beijing to amp up its stimulus amid fears of a deepening slowdown. Still, there are several green shoots that point to Beijing’s focus on growth, while also underscoring the depths of the real estate malaise. On a cumulative basis in the first 11 months, investments in infrastructure and manufacturing increased 5.8% and 6.3%, year-on-year, respectively; retail sales rose 7.2%, while real estate development investment dropped 9.4%, China’s NBS said. Official data released earlier Friday showed that China’s new home prices fell for the fifth straight month in November, underscoring weak confidence in demand and investment as some of the largest real estate developers are facing serious debt problems as Beijing strives to deleverage its once-bloated real estate sector. A raft of recent economic data has demonstrated softening domestic demand, which was among the core focuses of a document that China’s leaders released Tuesday evening at the end of a meeting charting economic priorities for 2024. Previously, data showed China’s consumer prices fell in November at their fastest rate in three years, while producer price deflation extended into the 14th month. In U.S. dollar terms, imports fell by 0.6% year-on-year, missing Reuters’ forecast for a 3.3% rise.
Source: Fibre2fashion
Recently, the Bangladesh Apparel Exchange, in collaboration with Fashion for Good, organized the 'Chemical Recycling Technologies: Manufacturing Markets Gateway' to promote textile circularity in Bangladesh. Fashion for Good, a global innovation platform based in Amsterdam, partnered with disruptive technology start-ups Circ and Infinite Fiber Company to drive this initiative, as highlighted in a press release. During the two-day event, held in Bangladesh, a key player in the garment production sector, focused on exploring the potential of chemical recycling technologies to bolster environmental sustainability. In general, the initiative aimed to raise awareness about disruptive innovations that could revolutionize the industry's waste and resource management practices, setting a precedent for sustainable approaches. The emphasis was on integrating these technologies into the local manufacturing landscape, forging feedstock partnerships, and establishing a value chain for recycled apparel materials. Priyanka Khanna, the Innovation Director - Scaling at Fashion for Good, expressed, "Bangladesh is an important region for the textile industry worldwide, and we are keen to share our knowledge around innovations with the manufacturers here." The collaboration brought innovators from Circ and Infinited Fiber Company to engage with and potentially partner with local industry stakeholders. Noteworthy participants including- Denim Asia Limited, Knit Asia Limited, Progress Apparels Limited, Ananta BD, Reverse Resources, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) were present there. Companies like Knit Asia Ltd and Denim Asia, associated with the sustainable brand Noize Jeans, and showcased their commitment to eco-friendly manufacturing processes. Progress Apparels Limited demonstrated its advanced sustainable production facilities, furthering the cause of sustainable practices in the garment industry. Mostafiz Uddin, the founder and CEO of Bangladesh Apparel Exchange, highlighted the event's significance for the broader Bangladeshi textile industry, stating, "This tour marks a critical step towards a circular fashion ecosystem in Bangladesh. It goes beyond being just an event, constituting part of a larger movement to incorporate innovative recycling technologies and establish global partnerships for a sustainable fashion industry.’’
Source: CNBC
Growth of Asian emerging and developing economies will still be a credit strength for many governments in the region, S&P Global Ratings has said, as it expects to retain credit ratings of APAC economies over the next one to two years.
Out of the 21 countries, to which S&P gives a sovereign rating in the Asia-Pacific (APAC) region, 19 have a stable outlook. The US-based agency has a 'BBB-' rating on India, with a stable outlook. 10In its report 'Asia-Pacific Sovereign Rating Trends 2024', S&P said most sovereign ratings in Asia-Pacific are investment grade with the average rating in the region lying between 'BBB' and 'BBB+'. “A deterioration in the Russia-Ukraine war or the conflict in the Middle East likely poses the most risk to stable sovereign outlooks in Asia-Pacific,” S&P said. The stable outlooks on practically all long-term foreign-currency sovereign ratings in the region (19 out of 21 ratings in Asia-Pacific) suggest there will be few, if any, changes in the next year or so. "We expect economic and financial conditions to allow us to maintain ratings on most sovereigns in the Asia-Pacific in the next one to two years," S&P said. It said economic growth in 2024 is unlikely to be as strong as 2023 but will remain resilient in most cases. Exports should pick up after a weak year in 2023, while international travel should continue to recover. "Growth of Asian emerging and developing economies will still be a credit strength for many governments in the region. "We continue to consider several governments in the region to be in economies that are outperformers in terms of trend growth," S&P said. As per the projections by the International Monetary Fund (IMF), these economies make up the fastest growing regional bloc for which the fund publishes forecasts. S&P projects India’s economy to grow 6.4 per cent in the current and next fiscal years. In 2022-23 fiscal, the country’s GDP grew at 7.2 per cent.
Source: Business Line
