Easing inflation in developed countries, softening interest rates, a gradual pick up in global demand and other factors will provide a silver lining for the country’s exports and the overall outbound shipments are expected to be more than $900 billion in 2024. International trade experts have expressed hope that the services sector would perform better than merchandise and the country’s overall outbound shipments may grow 17.80 per cent to touch over $900 billion in 2024 against an estimated $764 billion in 2023. Also Read - Adani Group’s mcap 25% short of pre-Hindenburg level ADVERTISEMENT A stable rupee against the US dollar, focus on new markets like Latin America and Africa, new items like mobiles and fresh fruits, focus on promoting e-commerce exports, free trade agreements with the UAE and Australia would also help the country register healthy growth in outbound shipments next year. Despite various challenges, including geopolitical tensions and China’s subdued post-pandemic recovery, impacting exports this year, India’s goods and services exporters have managed to tap opportunities in developed as well developing economies.
Source: Bizzbuz News
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Shri Piyush Goyal said that the Government under the visionary leadership of the Prime Minister, Shri Narendra Modi is promoting India as a global MICE (Meetings, Incentives, Conferences, and Exhibitions) destination to showcase India’s MSME sector, traditional handicrafts, artisanal offerings, weavers and manufacturing prowess. While addressing a media interaction yesterday in New Delhi, the Minister said that an array of game-changing initiatives are being undertaken to emphasize India's global footprint and bolster its economic engagement with the world. Shri Goyal said that a series of Mega Events are slated in the coming months to elevate India's position as a global economic powerhouse. The planned line-up of mega events commences with the 'Aatmanirbhar Bharat Utsav' scheduled from 3rd to 10th January 2024 at Bharat Mandapam, New Delhi. This event aims to exhibit a rich array of offerings, including products from artisans, weavers, khadi, tribal crafts, MSMEs, and cottage industries, offering a direct interface between producers and consumers. Following this, the 'Indus Food' exhibition will be held at India Exposition Mart, Greater Noida, from 8th to 10th January 2024. This exhibition will feature over 1100 exhibitors from nearly 120 countries and is expected to attract 2500 overseas buyers. The exhibition focuses on promoting value-added agricultural products, thereby aiming to enhance farmers' income and generate more employment in the food processing sector. Moving forward, the 'Bharat Mobility Global Expo 2024' will take center stage from 1st to 3rd February 2024 at Bharat Mandapam, New Delhi. Covering a sprawling 10 lakh square feet, this extensive mobility exposition will feature stakeholders across the automobile and mobility sector, showcasing their strengths and innovations. The expo will highlight areas like next-gen eco-friendly products, construction equipment, and various innovative mobility solutions. Subsequently, 'Bharat Tex' is scheduled from 26th to 29th February 2024 at both Bharat Mandapam and Yashobhoomi, New Delhi spanning nearly 20 lakh square feet. This colossal exhibition will be amongst the largest textile events in the world, featuring the end-to-end textile value chain – from farm to fashion. With 3500+ exhibitors, 3000+ overseas buyers, and participation from over 40 countries, Bharat Tex aims to showcase India's textile prowess and innovation to a global audience. Shri Piyush Goyal emphasized the scale, size, and ambition of these exhibitions, underscoring India's monumental revolution in its global engagement. He also highlighted the intent to foster greater business and market engagement worldwide, marking a significant shift in India's global outreach strategy.
Source: PIB
The disruption in the Arabian Sea has led to a domino effect, causing a substantial rise in freight charges, which is particularly unnerving for the textile industry. The Indian textile industry is grappling with a significant setback as freight costs experience a staggering 40% increase due to unrest in the Arabian Sea. This unexpected spike in transportation expenses has sent shockwaves through the sector, prompting concerns about its impact on operational costs, pricing, and overall sustainability. The disruption in the Arabian Sea has led to a domino effect, causing a substantial rise in freight charges, which is particularly unnerving for the textile industry. This unforeseen challenge comes at a time when the sector is already navigating various other economic uncertainties, including supply chain disruptions and fluctuating demand. Stakeholders within the Indian textile industry are now urgently calling for strategic measures to address the heightened freight costs. The industry, a crucial contributor to the country’s economic landscape, is seeking solutions to mitigate the impact on businesses, maintain competitiveness, and uphold employment stability. As the textile sector faces this unanticipated hurdle, finding a swift resolution to the surge in freight expenses becomes imperative for sustaining the industry’s growth and preserving its integral role in India’s industrial framework.
Source: Indian Textile Journal
The textile and apparel sector in Tamil Nadu contributes more than 50% of installed renewable energy capacity in the State; nearly 300 textile processing units in Tiruppur are connected to common effluent treatment plants with zero liquid discharge; in Panipat, Haryana, open-end spinners use only recycled fibre; and India recycles almost 90% of its used PET bottles into fibre. These are among some sustainable practices that India’s textile and clothing sector has invested in over the past two decades. Now, as the European Union (EU’s) moves towards implementing its environmental, social, and governance (ESG) goals and the European Green Deal takes effect in 2026, several global brands are insisting on sustainable production and supply chains. There is palpable concern in India’s textile sector, dominated by small businesses - the Micro, Small and Medium Enterprises (MSMEs), about the impact new rules like EU’s Carbon Border Adjustment Mechanism (CBAM) would have, aside from complying with the ESG standards. But there is also recognition that this might well be the moment to attempt a paradigm shift in sourcing, production, pricing and supply processes, to cement the sector’s position as a top global supplier.
‘ESG a significant disruptor’
Acknowledging ESG demands of overseas buyers as “significant disruptors”, Tamanna Chatuurvedi, deputy secretary general, Apparel Export Promotion Council (AEPC), says it is a “do or die situation” for India’s textile and apparel sector. She says exporters can leverage benefits of India’s potential free-trade agreement with the EU only if they invest in sustainability. Ms. Chatuurvedi adds this also requires considerable documentation of various sustainable and inclusive social practices the sector has already achieved.Indeed, some of it, like the social indicator of employing rural women in large numbers, have helped the industry. While major garment exporters have begun releasing annual sustainability reports, clusters like Tiruppur are showcasing their collective green footprints. At Heimtexil in Frankfurt next month, exporters from Karur will showcase carbon credit data and sustainable home textile products and the AEPC plans curated shows of sustainable garments. Representatives of global clothing brands have already begun visiting garment and fast fashion clusters, to deliberate on ESG compliances. A leading garment exporter in Coimbatore said ESG norms compliance is mandatory “to just continue to be a supplier.” India exports 16% of its cotton textiles to the EU, 40% of its synthetic fabric and about a third - 28% of the country’s total apparel exports are to European countries. The Ministry of Textiles has formed an ESG task force and is considering supportive interventions for the industry; industrial associations are joining hands with organisations that will enable exporters to put systems in place, document the measures taken, and get the required certifications; the Cotton Textiles Export Promotion Council (Texprocil) is promoting Indian cotton brand Kasturi that comes with traceability; and some of the financial institutions are reaching out to MSMEs to fund green and sustainable projects. Despite these positive strides, significant hurdles remain for the sector to meet various mandates as almost 90% of garment exporters are MSMEs, and 50%-60% of cotton and synthetic exporters as well. And, these compliances and documentation come with additional costs, thinning the units’ margins. Moreover, individual European countries are coming out with their own codes. Rakesh Mehra, Chairman, Confederation of Indian Textile Industry (CITI), pointed to challenges relating to complying with supply chain sustainability norms. “Orders will go to those who are compliant. But, big companies may not manufacture products that smaller ones do,” he said. Even among different parameters that constitute ESG, challenges remain. SK Sundararaman, chairman of Southern India Mills’ Association, points out that labour issues vary in each textile/garment producing State. “ESG talks about ‘living wages’. It will be different in each State, leading to difference in labour costs,” he says. Another example is the use of recycled fibres. Tiruppur is already seeing imports of hosiery waste from Bangladesh as demand increases for recycled fibre. But the quality of regenerated cotton is not on a par with fresh cotton and so it can only be blended in specific quantities, say garment producers.
Unsupportive global buyers
According to P. Gopalakrishnan, chairman of Handloom Export Promotion Council, overseas buyers are helping the suppliers with inputs to meet mandates and currently, they are insisting on norms only with tier-one suppliers. But he says, norm compliance increases the product price significantly, and buyers are not supportive.While manufacturers, irrespective of the size of the company, in the supply chain must invest to meet ESG norms, only some global brands are ready to pay a higher price for these products, say fast fashion exporters. The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) is advocating exemption for MSMEs from ESG norms in the proposed FTA with the EU. The EU has exempted its own MSMEs from ESG norms and the Indian government must ask for a similar treatment for India’s textiles producers, they say. The Tiruppur Exporters Association is seeking incentives for sustainability efforts. It is also asking for a separate Harmonised System codes for export of sustainable products. There are other concerns, like the increasing use of recycled or regenerated meterial across the production process, but domestic consumers are not made aware of such developments. Retailers do not sell them in the local market as sustainable products, reducing a premium price from domestic consumers. Sanjay Jain, Managing Director of TT Limited and former chairman of CITI, says his company recently came manufactured garments with 100% recycled fibres for domestic consumers, but received no premium for such products. Yet, with global emphasis on sustainability, use of recycled fibres will increase by 7% -10% of total fibres consumed in India in the next 10 years, he reckons. Bhadresh M. Dodhia, chairman of SRTEPC, and Mr. Jain called for mandates for domestic retailers too to sell at least a percentage of sustainable products to signal India’s commitment to ESG norms. Exporters say another fall out of the ESG norms implementation would be reduction in the fashion seasons. Some brands have more than 10 fashion seasons in a year and this is likely to reduce with emphasis on circularity and reuse.“A lot (of the norms) is driven by retailers and brands. They are also seeing the price viability. But, low prices should not be confused with low ethics or transparency. Norms are about increasing the life cycle of products and raw materials”, said the ESG head of a global sourcing company not wishing to be named. Exporters also apprehend the possible linking of ESG norms to trade negotiations. “The world is moving towards recycling. However, when policies related to social and environment are linked to trade policies, the could possibly become barriers,” said Siddhartha Rajagopal, Executive Director of Texprocil. The growth momentum witnessed by the Indian economy in the July-September quarter is likely to continue in October-December and even in January-March, and it is expected to “comfortably” achieve a growth rate of over 6.5 per cent for 2023-24 (FY24), the Finance Ministry’s Department of Economic Affairs (DEA) said in its half-yearly economic review for FY24. According to the DEA, the Indian economy’s high frequency indicators (HFIs) for October and November demonstrate robust economic activity and the trend is expected to continue through the fourth quarter as well. Although the DEA cautioned against downside risks emanating from “smouldering inflationary pressures” in advanced economies and re-emerging supply chain disruptions due to persistent geopolitical stress, it sees domestic economic momentum, low-to-moderate input cost pressures, and anticipated policy continuity as “significant” buffers against them. “The better-than-expected growth in Q2 (July-September) of FY24 and the emergence of India as the fastest-growing major economy in H1 (April-September) of FY24 have improved the growth prospects and prompted various domestic and international agencies to upgrade GDP growth projections for FY24. The momentum gained in Q2 of FY24 is likely to be sustained in Q3 (October-December) as well. HFIs in India for October and November 2023 reflect robust economic activity,” the report said.
Source: Indian Express
India's exports to Australia have increased by 14 per cent to USD 5.8 billion in April November this fiscal on account of healthy growth in various sectors like engineering, pharma and electronics, a senior official said on December 29. Additional Secretary in the Department of Commerce Rajesh Agrawal said businesses of India and Australia are gaining from the interim free trade agreement, implemented on December 29 last year. He also said negotiations to widen the existing trade agreement into a comprehensive deal are "progressing well". "We expect to have some negotiations on rules of origin during January. That is one area where we have to work out detailed product-specific rules, and it takes time," Agrawal noted. Foreign direct investments have risen too from Australia to India at an annual average of USD 30-40 million to USD 300 million this year, he added. India's imports from Australia, however, dipped by 19 per cent to USD 11.14 billion during April-November this fiscal. India's imports from Australia, however, dipped by 19 per cent to USD 11.14 billion during April-November this fiscal. According to the data provided by the department, bilateral trade during the period fell 10 per cent to USD 17 billion. Export sectors, which have recorded healthy growth during the seven-month period of this fiscal, include engineering, pharma, electronics, spices, coffee, textiles, marine products, cashew and plastic. "We are gaining market share in Australia. Preferential duties are working in favour of industry. We are diversifying our trade basket with Australia," Agrawal said. However, exports of gems and jewellery, and handicrafts have reported a negative growth. On the import side, inbound shipments of gold jumped to USD 1.56 billion during April October 2023 from USD 436 million in the same period last year. Other import sectors recording healthy growth include pulses, metals, iron and steel, wood and wood products, machine tools and newsprint. Presenting the data, Additional DGFT Tapan Mazumder said that export sectors where customs duty concessions have been given under the agreement also reported positive growth. Those goods included gold jewellery studded with natural diamonds, nongalvanised pipe for oil and gas, unstudded gold jewellery, skirts and dresses made of material other than silk, dresses of artificial fibres and cotton garments. When asked which country is gaining more from the agreement, Agrawal said, "We have just completed a year, it is very early to say that". Commenting on the agreement, trade expert and Hi-Tech Gears Chairman Deep Kapuria said Australia holds immense importance for India in view of India's ambition of energy transition, which is critical for achieving net zero by 2070. "A deeper trade agreement with Australia would help India in securing its needs of critical minerals," Kapuria said.
Source: Money Control
India is expected to remain the fastest-growing major economy in the world next year amid strong consumer demand leading to a pick-up in investment across sectors like hospitality, construction and infrastructure, according to the Associated Chambers of Commerce & Industry of India (ASSOCHAM). ASSOCHAM secretary general Deepak Sood said that the country’s macro picture looks quite convincing, with the overall economy following a trend growth of 7 per cent, as per Indian media reports. India companies are on a strong pitch to further improve performance in the coming year, the industry body said. “Sectors like construction have several related industries, which too have gained momentum. These include steel, cement, mining, electricity generation and consumer durables,’ ASSOCHAM stated. India retained the tag of the world’s fastest-growing major economy, with its gross domestic product (GDP) expanding by a faster-than-expected rate of 7.6 per cent in the July-September quarter. The GDP growth was higher than most estimates, including the Reserve Bank of India’ s 6.5-per cent projection. The growth was 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter. Low crude oil prices have kept inflation in check and have positively helped keep raw material costs under control, it added.
Source: Fibre2fashion
India and the five-member Eurasian Economic Union (EaEU), led by Russia, are expected to commence discussions on a free trade agreement (FTA) in the coming months. The agreement aims to boost India’s exports to the region, specifically in sectors such as engineering goods, electronics, and agriculture, to promote more balanced trade. During a meeting in Moscow on Tuesday, India’s External Affairs Minister S Jaishankar and Russian Deputy Prime Minister Denis Manturov discussed intensifying India’s engagement with the Russian Far East, including starting negotiations on the proposed FTA. Jaishankar took to Twitter, stating, “Finalised the cooperation program on the Russian Far East. Expect to hold an early meeting of EaEU-India FTA negotiators. Will jointly organise connectivity events across land and maritime corridors.” The discussions between Jaishankar and Manturov also covered various international issues, including the Indo-Pacific, the Ukraine conflict, the Gaza situation, Afghanistan and Central Asia, BRICS, SCO, G20, and the UN. Jaishankar later met with his Russian counterpart Sergey Lavrov to discuss bilateral economic and inter-governmental cooperation. Talks on the FTA between India and EaEU member countries, namely Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, began in early 2020 but were disrupted by the Covid-19 pandemic. While negotiations have resumed over the past few months, the finalisation of the agreement awaits further discussions. Regarding trade, India is keen on enhancing exports to Russia, as its trade deficit with the country has significantly widened due to increased imports of discounted oil following the Russia-Ukraine war and Western sanctions on Moscow. In 2022-23, India’s imports from Russia rose 368% year-on-year to $46.2 billion, mainly driven by higher oil purchases. Meanwhile, its exports to Russia during the same period saw a 3.3% decline, resulting in a trade deficit of $43 billion. India aims to mitigate this trade imbalance and establish a more balanced and sustainable trade relationship with Russia and other EaEU members. India has been actively working to boost exports, focusing on sectors such as agriculture and engineering. However, Western sanctions have affected the exports of electronics and telecom goods to Russia and Belarus. On the other hand, Russia is interested in increasing imports from India to ensure the success of the rupee payment mechanism, which the two countries have implemented to circumvent the impact of sanctions. Due to lower imports from India, Russia’s rupee balance has accumulated in the account. Overall, negotiations on the proposed FTA between India and EaEU are a significant step towards strengthening economic ties and paving the way for increased trade cooperation between the two regions. The talks are expected to expand opportunities in sectors of mutual interest further and address the trade imbalance, ultimately contributing to the growth and development of both economies.
Source: Textile Value Chain
New Delhi: India and the United Kingdom (UK) are likely to sign their free trade agreement (FTA) by end-January as the two countries have almost resolved the differences on trade of goods, while an understanding is likely to be reached on some sticky issues like legal services and movement of professionals, official sources said. commerce ministry officials may also visit the UK to finalise the deal. “Time is running out. I hope that it will be signed in January. If it is not done in January or early February, then it is unlikely to be signed before the Lok Sabha elections,” a senior government official said. The thirteenth round of negotiations were held in person and virtual mode between September 15 and December 15. In-person talks were held in New Delhi as well as London. Similar approach is likely to be adopted for the 14th round of negotiation. According to the official, who requested not be named, a broad understanding has been reached on issues like providing greater market access for goods like automobiles, whisky, textiles and leather. Migration, movement of professionals and legal services remained some of the sticky issues in the services sector that need to be resolved. India and the UK both are exporters of legal services. As part of the deal, the UK has been pitching for access to legal services in India. The Bar Council of India (BCI) does not allow foreign lawyers or law firms to appear in any court, tribunal or board in the country. However, the BCI earlier this year came out with new guidelines to allow foreign lawyers limited entry. As per the new guidelines, foreign lawyers are allowed to appear for their clients in international commercial arbitration on a reciprocal basis. On tariff cuts, the sources said while tariffs on some products would be lowered with implementation of the deal, there is likely to be a timeline for cutting tariffs in other sectors. This means the two countries will agree to cut taxes on selected line items with immediate effect and lower duties on other items in phases. This will provide negotiators flexibility to conclude the deal.
Source: Deccan Herald
India continues to be a ‘star performing’ economy as against other emerging markets, as per a report by Axis Securities. “We firmly believe that India is likely to continue its growth momentum in 2024 and remain the land of stability against the backdrop of a volatile global economy. The majority of the highfrequency indicators are trending upwards and the uptick from the pre-Covid levels is visible, indicating the resilience of the Indian economy," the report said. On top of it, the macroeconomic scenario has changed in favour of the equity market in the last one month and multiple indicators are now indicating a positive start for 2024. It is also noteworthy that the US bond yields witnessed a correction of 110bps from its peak in the last one month, which is further supporting the rally. Overall, the country’s macro set-up is positive, the report said. The fundamentals of Indian corporates have improved significantly and so has the profitability across the board. This can be seen in the cumulative and rolling net profit of the NSE 500 universe for the last four quarters (till Q2FY24), which crossed the Rs 12 lakh crore mark. Moreover, after a muted performance for several years, the ROE of the broader market is improving as well. The bolstered balance sheet strength of corporate India and the significantly enhanced health of the Indian banking system are additional positive factors. These elements are poised to facilitate Indian equities in achieving double-digit returns over the next two or three years, supported by robust double-digit earnings growth, it added. Multiple events are lined up in 2024 and the market will continue to closely monitor the developments around them. The key events are: 1) Interim Budget; 2) General Elections; 3) Expectation of US Fed rate cut around May-June 2024; 4) Full-year Budget around July 2024 after the formation of new government; 5) Expectations of interest rates cut by the RBI in sync with global rate cuts; 6) US elections in November 2024. The above-mentioned events are expected to keep the Indian equity market volatile and it could respond in either direction based on the developments, the report said. Kenneth Andrade, Founder-Director at Old Bridge Capital Management and CIO at Old Bridge Asset Management, said that a global rebalancing of trades works favourably for India, positioning the country to gain global market share across various industries. Opportunities span a wide spectrum, with a particular focus on the large manufacturing footprint and the resilient services industry, both of which are globally competitive. “However, as we look ahead to 2024, there are areas of caution. Excesses in the small and microcap space raise concerns, and there is an anticipation of volatility, especially in segments where valuations appear stiff. Despite these short-term challenges, the overarching trend seems to favour India, presenting a higher growth potential relative to peer countries in the region," the report said. HDFC Securities said in a report that India's GDP growth will remain healthy at 6.8 per cent in FY24 and moderate to 6.3 per cent in FY25. Domestic manufacturing to lead growth, rural growth to be supported from rural welfare schemes in the Budget and global headwinds will impact export-oriented sectors, it said
Source: Daijiworld
Twenty-four readymade garment (RMG) factories in Bangladesh this year received the Leadership in Energy and Environmental Design (LEED) certification, the globally recognised green building rating system. This brings the country’s total LEED-certified green factories to 206, according to Mohiuddin Rubel, director of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA). Seventy six factories got the prestigious platinum rating, and 116 received the gold rating, he was quoted as saying by domestic media reports. Of the 24 newly LEED-certified factories, 16 were awarded the platinum rating, while the remaining achieved gold rating. Standout performers this year include S.M. Sourcing (106 points) and Green Textiles Limited Unit 4 (104 points). Both Integra Dresses and Knit Asia Limited got 99 points, Lida Textile & Dying Limited got 97 points, and Liz Fashion Industry Limited scored 96 points, BGMEA said. Fifty four out of 100 LEED-certified green factories worldwide are located in the country now. This includes nine of the top 10, and 18 of the top 20 such factories globally. Most of the 2023 certifications were in Gazipur (15 factories), followed by Dhaka (4), Chattogram (3), and Mymensingh (2). Over 500 factories in the country are in the process of obtaining LEED certification now.
Source: Fibre2fashion
In a year filled with economic hurdles, the world's largest economy stood resilient, boasting an estimated Purchasing Power Parity (PPP)-adjusted GDP per capita of $80,412 in 2023. Despite the Federal Reserve's aggressive interest rate hikes totalling a full percentage point, the nation's economy surpassed expectations with a growth rate of 2.1 per cent in 2022, accelerating slightly to 2.2 per cent in 2023, the Centre for Economics and Business Research (CEBR) said in a recent report. Consumer spending, buoyed by employment strength, played a pivotal role in the year's economic narrative. However, as 2024 approaches, the economic landscape appears more subdued. The delayed effects of interest rate hikes and reductions in fiscal spending are expected to cool consumer expenditure and overall economic momentum, as per the CEBR report titled ‘World Economic League Table 2024’. Inflation, which moderated to an estimated 4.1 per cent in 2023, remains a focal point. Despite a downward trend, prices are projected to stay above the Federal Reserve’s 2 per cent target into 2024, keeping policymakers and consumers watchful. As November 2024 looms, the presidential election is set to become a critical juncture. With President Joe Biden expected to run against a prominent Republican figure, economic stewardship and domestic policies, alongside pressing foreign policy issues, are poised to dominate the discourse, the report said. Ambitions for a greener future also continue to shape the policy landscape. The Inflation Reduction Act, with its broad sweep over climate, taxation, and healthcare, underlines a commitment to net-zero emissions by 2050, reflecting the nation's evolving policy priorities. Long-term projections indicate a gradual decline in the United States' share of global GDP, with China expected to ascend as the world's largest economy by 2037, a year later than previously forecast. This slight adjustment reflects both an optimistic near-term outlook for the US and emerging concerns in China's real estate sector.
Source: Fibre2fashion
Conspiracy around the country's garment industry is continuing. After a letter from 8 US Congressmen, a report was published in the influential British daily The Guardian on December 23 about the lives of garment workers in Bangladesh. In that report, freelance writer Taslima claimed that, unable to keep up with the increase in commodity prices, women garment workers are getting involved in sex work to save their children and their own lives. Garment owners' organizations believe such stories are part of a conspiracy to destroy the country's garment industry. Titled 'Woman Making Christmas Jumpers for UK Turns to Sex Work to Pay Bills', the article featured a garment worker named Ruby Rafiq (pseudonym). It claims that with the rising cost of living due to inflation, Ruby has no choice but to work as a sex worker at night. Citing the Guardian, the country's daily Manab Zamin published the news. Concerned people have also criticized the scene of women workers in the garment industry in the news titled 'Garment workers forced to engage in sex work'. Later, Manab Zamin removed the news from their online platform. According to the Guardian and Manab Zamin reports, the factory where garment worker Ruby works sells clothes to major British brands including Tesco, Matalan and Next. In the run up to Christmas they were busy making jumpers with 'Santa's Little Helper' written on them. Even after working 10 hours a day, seven days a week, she is struggling. She earns about £15 a week. The new minimum wage was expected to take effect in December but it has not been paid yet. Usually Ruby was trying to cope with the situation by not eating a meal or by reducing the food in her little daughter Maya's lunchbox. But the situation worsened when her husband left her. Her 16-year-old son, Shakib, became hungry and started stealing. The situation is such that Ruby is no longer able to pay the rent for her house. Tries to deal with debt, but struggles to pay off that debt. Her condition has taken a dire shape since last year. In this situation, she was forced to choose the life of a sex worker, the report claimed. According to the garment sector concerned, where the alleged RMG worker Ruby is working is not mentioned directly, but it is said that clothes of British companies Tesco, Matalan and Next are made in that factory. Keraniganj of Buriganga river side has been shown as the area of her sexual activity at night. Industry owners claim that there is no factory of that size in Keraniganj area where world famous brand clothes are made. Again, it is not possible for anyone to spend night after night in unethical work in Keraniganj and go to Savar, Ashulia, Gazipur, Narayanganj to survive in orderly work in any factory. While no discomfort was found at Ruby Rafiq's factory, factory workers and human resource personnel working for the luxury brand said that it is not possible for someone who is used to a carefree lifestyle to continue the orderly work of a good quality factory. Some garment workers said, it is not possible to work if we stay up night after night. Such reports are humiliating for us. Challenging the authenticity of this report, Executive President of BKMEA Mohammad Hatem said, I can definitely say that the worker mentioned in the report is not a garment worker. I'd say it's definitely intentional. It is a part of the conspiracy with the garment sector. He said, on behalf of BKMEA, we have decided to send a letter to the Guardian protesting jointly with BGMEA. The letter will ask explanation of what the Guardian reported as the basis for the news. Meanwhile, the labor organizations are saying that they will also protest organizationally due to the publication of such false news about them. They said that since the Guardian is a British media, they will directly deliver their message to the friendly labor organizations of Bangladesh in the UK. BGMEA Vice President Shahidullah Azim said that there is a deep conspiracy going on around the garment industry of the country and some quarters are involved in the campaign on purpose. Our competitors in the international garment industry market are also inciting it. Just as our jute industry has been destroyed, there is a conspiracy to destroy our garment industry. When asked whether any action will be taken by BGMEA against such reports and anti-Bangladesh campaign, he said, of course we will take appropriate action against it. We will also send our protest to the Guardian. This report is completely false and intentional.
Source: Textile Today
