In order to give the state’s textile industry a boost, the Maharashtra Government has decided to set up a new corporation for the textile industry on the lines of Maharashtra Industrial Development corporation (MIDC).Following the merger of three already-existing textile corporations in the state—Maharashtra State Handloom Corporation, Maharashtra State Powerloom Corporation Ltd., and Maharashtra State Textile Corporation—the new corporation will be known as the Maharashtra State Textile Development Corporation (MSTDC). With the intention of creating a favourable and sustainable environment for the expansion of the textile industry, the government has established a committee to write the legislation creating the MSTDC.The committee that will develop the law will include officials from the textile, finance, planning, industries, law & judiciary, and other departments as well as principal secretaries.The MSTDC will be established under the new Integrated and Sustainable Textile Industry Policy 2023-28 of the state, which was accepted by the state cabinet in May of last year, according to the officials. The new textile policy aims to increase investment in the state’s cotton producing business and draw in a whopping Rs 25,000 crore in the near future. The Textile and Silk Commissionerate will be formed by the merger of the Textile Commissionerate and the Silk Directorate in accordance with the new policy. The regional deputy commissioner for textiles and silk will oversee this office. Under the new strategy, the Government also plans to create six technical textile parks around the state, and the Maharashtra Technical Textiles Mission would be launched to guarantee the sector’s “aggressive growth.” “The MSTDC will be statutorily setup on the lines of MIDC as announced in the Integrated and Sustainable Textile Policy 2023-28. All the corporations under the department of textiles will be merged into the MSTDC and all the assets of the existing corporations will be transferred to the MSTDC and all payments will be restructured as per the Government directives. MIDC has been established under the Maharashtra State Industrial Development Act, 1961. On a similar line, the Maharashtra State Textile Development Act will be setup by law,” an official said.
Source: Apparel Resource
PLI scheme has already been deployed in 14 sectors, and the government will prefer to see how these industries do, says Rajesh Kumar Singh, DPIIT secretary. Centre has no plan to introduce production linked incentive (PLI) schemes in any new sector at the moment. PLI has already been deployed in 14 sectors. Instead, it will tweak some existing schemes to make them more attractive and industry friendly, Rajesh Kumar Singh, secretary, Department for Promotion of Industry and Internal Trade (DPIIT) tells Fortune India, while speaking on the sidelines of the 27th World Investment Conference in New Delhi.The government would prefer to see how these 14 sectors do. The plan is to let them all stabilise and do well, and consider more sectors thereafter. But at the moment, there are no plans or consultations for any new PLI schemes,” he explains. With an overall outlay of ₹1.97 lakh crore (over $26 billion), the scheme intends to enhance India's manufacturing capabilities and self-reliance and exports.
Source: India Shipping News
With Pongal soon to be celebrated on January 15 and 16, retail and wholesale sales at the textile markets in the city have improved, as traders from other districts and States have come in for purchases. Over 3,100 shops selling textile materials function at the E.K.M. Abdul Gani Textile Market (Gani Market) in Panneerselvam Park, Ashokapuram and near Central Theatre in the city. Likewise, weekly shops at the Gani Market function from Monday afternoon to Tuesday night, where people and traders purchase materials, both in retail and in bulk quantities. K. Selvaraj, president of the Erode Gani Market Weekly All Textile Merchants’ Association, told The Hindu that the demand for synthetic dress materials for Pongal, particularly for children, was high and sale volumes were good. “The volume of both retail and wholesale sales is about 40% each,” he said and added that traders from Vellore, Tiruvannamalai and Kallakurichi, had come in large numbers and bought material. Also, traders from Andhra Pradesh have made bulk purchases. “Sales will go on improving until Pongal,” he added
Source: The Hindu
India’s exports from the labour- intensive sector such as textiles, garments, gems and jewellery, and leather exports have slowed despite the free trade agreements (FTAs) in the past as efficient suppliers from China, Vietnam and Bangladesh gained market share in global trade, a report by think tank Global Trade Research Initiative (GTRI) said. Overall goods exports have been on the decline for the better part of the ongoing financial year due to demand slowdown in the west – a key consumer of Indian textile and gems and jewellery exports. Property crisis in China has also resulted in slowing of Indian exports. The think tank said that among the key reasons for weak exports in these sectors are non-tariff barriers (NTBs) imposed by consumer nations and that India should use the ongoing free trade agreements negotiations to eliminate such barriers. NTBs are trade restrictions in the form of regulations or quotas designed to limit imports without the explicit use of tariffs. At a time when India is signing free trade agreements with developed nations such as the UK, GTRI said that mere signing of an FTA may not result in a rise in India’s labour-intensive Goods exports and India’s export of apparel to Japan is an example. “Most-favored nation (MFN) duties on Apparel in Japan are 10 per cent. During the FTA negotiations in 2008-2010, it was thought that if Japan could reduce duties to zero post-FTA, India’s apparel exports to Japan would get a significant boost. Both countries agreed to eliminate duties on all apparel from day one of the entry into force of the India –Japan FTA. But data from the past 12 years show that the expected gains did not happen,” GTRI said. “Competition from more efficient suppliers from China, Vietnam, or Bangladesh could be a reason. Developed countries with high per capita income prefer high-fashion branded apparel produced in large units. While developed countries buy 70 per cent of apparel from mixed synthetics, their share in India’s exports is less than 40 per cent. On average, India’s labor-intensive manufacturing units employ 20 workers compared to 1,000 in China,” it added. arlier this year, Federation of Indian Export Organisations (FIEO) had also said that an analysis of sector-wise export performance for the last five years revealed the troubling pattern that India is experiencing a decline in global market share across labour-intensive sectors. FIEO said that India’s export growth during the last few years can largely be attributed to a rerouting of crude oil trade routes via India to Europe and that “this phenomenon may not be sustainable in the coming years.
Source: Indian Express
In a significant development for India's logistics and maritime sectors, 2023 has been a year marked by notable advancements and ambitious initiatives. According to the World Bank's Logistics Performance Index (LPI) Report released in April 2023, India achieved a commendable 22nd rank in the International Shipment category, a substantial leap from the 44th rank in 2014. This improvement is further underscored by the reduction in the average container dwell time to just three days, surpassing the performance of countries like the UAE, South Africa, the US, and Germany. Indian ports have shown efficiency with their ‘turn around time’ reaching a mere 0.9 days, outperforming several global counterparts including the US, Australia, and Singapore. Parallelly, India's maritime sector is poised for a transformative journey with the launch of the Maritime Amrit Kaal Vision 2047 during the Global Maritime India Summit. This comprehensive roadmap, formulated by the ministry of ports, shipping, and waterways (MoPSW), involves an investment of ₹80,000 lakh crore. It aims to develop world-class ports and promote inland water transport, coastal shipping, and a sustainable maritime sector. The vision, which builds on the Maritime India Vision 2030, encompasses over 300 actionable initiatives for enhancing ports, shipping, and waterways by 2047, and was shaped through extensive consultations and international benchmark analyses, MoPSW said in its year-end review. The Global Maritime India Summit (GMIS) 2023, organised in Mumbai, was a landmark event, inaugurated by Prime Minister Narendra Modi. This largest-ever summit saw participation from ministers of 10 foreign countries, delegations, business delegates, and exhibitors from 42 countries. The event was a catalyst for significant agreements, with the signing of 360 memorandums of understanding (MoUs) worth ₹8.35 lakh crore and additional investible projects of ₹1.68 lakh crore. The summit also laid the foundation for eleven projects totalling ₹14,440 crore, with eleven more projects valued at ₹8,924 crore dedicated to the nation. In January 2023, the National Logistics Portal (Marine) was inaugurated, offering a one-stop platform for all stakeholders in the logistics community, integrating various modes of transport and aiming to enhance efficiency and transparency.Another noteworthy development was the launch of 'Sagar Manthan', a comprehensive monitoring dashboard for the MoPSW. This digital platform, launched in March 2023, enables real-time monitoring of projects, KPIs, and financial and operational parameters.
Source: Fibre2fashion
According to Statistics Netherlands (CBS), Dutch manufacturers were more negative in December than one month previously. Producer confidence went down from -0.5 in November to -3.4 in December. Manufacturers were particularly more negative about the order positions and the expected output in the next three months.In December, producer confidence was below the long-term average of 1.0. It reached an all-time high (12.7) in November 2021 and an all-time low (-28.7) in April 2020.Opinions on order positions and expected output deteriorated Manufacturers’ opinions about the order positions and the expected output in the next three months deteriorated. They were also more negative about the current stocks of finished products. All three component indicators were negative. Manufacturers anticipating output to decrease over the next three months outnumber those expecting an increase. More manufacturers define their current stock of finished products as large rather than small. The majority of manufacturers consider their order position to be weak rather than strong, given the time of year.
Producer confidence down in over half of industries
In more than half of the major manufacturing industries, producer confidence fell further in December. The decline was the highest in the textile, clothing and leather industries and in the electrotechnical and machinery industry. However, confidence was positive in both industries. More than half of producers do not feel any consequences of increased interest rates. The monthly Business Survey Netherlands also includes occasional questions that are not related to producer confidence. For example, about the main consequence of the increased interest rate. More than half of the producers indicated that there are no or hardly any consequences, while more than a quarter of them thought that financing costs are higher and put pressure on profitability. Furthermore, just over 7 percent said that customers could borrow less, resulting in lower demand for their products. The remaining 10 percent mentioned other effects, such as more obstacles in obtaining financing. This question was also included in the survey of June 2023, showing similar results.
Source: CBS News
The government on Tuesday issued a standard operating procedure (SOP) to make changes or cancel Industrial Entrepreneur Memorandum (IEM). Industrial undertakings exempt from the requirements of licensing under The Industries (Development and Regulation) Act 1951 are required to file information related to setting up of industries, which is known as IEM. Confirmation for receipt of such information by the Department for Promotion of Industry and Internal Trade (DPIIT) is known as ‘IEM Acknowledge. “In this regard, the requests have been considered and it is decided that the... standard operating procedure will be adopted for these purposes,” the DPIIT said in the memorandum. “Cancellation letter will be issued after approval of concerned AS (additional secretary)/JS (joint secretary),” it said. A similar kind of exercise will have to be followed for making amendments and issuance of duplicate IEM. The 19th Maritime State Development Council meeting, held in August 2023 in Gujarat, further emphasised India's commitment to achieving a 10,000 MTPA port capacity by 2047, establishing a Bureau of Port Security, and creating hydrogen hubs at Major Ports. In terms of operational performance, India's major ports have shown significant improvement in the current financial year, handling 500.82 million tons of cargo, a 5.42 per cent increase from the previous year. Other operational parameters such as output per ship per day, vessel turnaround time, and pre-berthing detention of vessels have also registered remarkable improvements. Complementing these developments, the inauguration of the National Centre of Excellence in Green Port and Shipping in March 2023 marked a stride towards steering the shipping industry and ports towards carbon neutrality and circular economy, in collaboration with MoPSW and The Energy and Resources Institute (TERI).
Source: Economic Times
The India-Bangladesh bilateral trade, already strained by economic headwinds during the year, has dampened in some land ports due to the upcoming general elections in the neighbouring country, exporters said on Tuesday. Bangladesh is set to hold its 12th general election on January 7 and the pre-election atmosphere has cast a shadow on the cross-border trade. Indian exports to Bangladesh between April and October 2023 declined by 13.32 per cent, while imports saw a marginally smaller 2.3 per cent dip, according to data from the Department of Commerce. "Trade activity has been affected for some time now due to Bangladesh's forex shortages and liquidity crunch. The election-related slowdown is expected to be temporary, but stricter rules like the 110 per cent margin on letters of credit compared to the earlier 10 per cent have been a major concern for traders," a commodity exporter told PTI on condition of anonymity Stakeholders point to the general slowdown in trade activity during elections as a natural phenomenon due to factors like tighter border controls, heightened risk aversion among businesses, and the potential for disruptions like protests and shortage of labourers who go back to their hometowns for voting. The impact is particularly acute in West Bengal's border town of Bangaon near the Petrapol border, where local markets heavily rely on Bangladeshi tourists, they said "Export activity, especially of construction materials like stone chips, has slowed down due to the elections," said Prasonjit Ghosh of Malda's Malhadipur Exporters' Association. Fly ash exports via the Indo-Bangladesh protocol route through Kolkata port have also witnessed a 15-25 per cent drop during the peak construction season, highlighting the broader impact on construction material trade. "There's been a temporary slowdown due to the election mode, but we expect trade to bounce back to normal after the polls," said Sajedur Rahman of the Benapole C&F Agents Association. Although Petrapole cargo truck movement data shows no major trade disruptions, the number of trucks moving between December 21 and 31 had been quite erratic due to holidays. However, passenger movement, particularly inbound traffic, had reduced significantly. The inflow to India through Petrapole reduced to 2141 passengers on December 31 from 2894 on December 21, Petrapole Land Port Manager Kamlesh Saini said. Binay Sinha, secretary of the Bangoan Chamber of Commerce, pinpointed the stark impact of the Bangladeshi elections on Bangoan's three local markets: Taw Market, Motilal Market, and New Market. "Visa issuance restrictions imposed by Bangladesh except for medical treatment on its citizens during the election period drastically reduced tourist flow," Sinha elaborated. "These markets heavily rely on Bangladeshi tourists who purchase goods in India before returning home but these local markets are not closed," he said. Adding to the woes, "informal trade channels have also come to a standstill during the elections, further squeezing these markets", a local trader said.
Source: Economic Times
In the free-trade negotiations that India is involved in, it may end up giving up more than what it can gain, trade policy think tank said on Tuesday citing a recent study. Even in labour-intensive sectors where New Delhi is seeking parity with competitors from the developing world, it may face disappointments, the Global Trade Research Initiative (GTRI) said. The two most important free trade agreements (FTAs) that India is negotiating are with the UK and European Union (EU). While a little over half of the imports by the two potential FTA partners for India already attract zero tariffs, for India the corresponding figure is 6%.Apart from zero duties, the UK and EU also have lower trade weight applied Most Favoured Duties of 4.1% as against India’s 12.6%. So, when a large part of trade moves to a lower duty regime it would give substantial advantage to exporters from the UK and EU but Indian exporters which even now have to face lower duties in these markets will get a limited benefit. The experience with Japan, Association of SouthEast Asian Nations (ASEAN) and South Korea shows that many Indian firms choose not to use the FTA route when import duties are low, as FTA-related compliance costs do not justify the tariff benefits, the GTRI added. Countries ranging from large economies like the USA, Europe, Japan, and the UK to smaller ones like Oman, Peru, and Mauritius either already have or are actively seeking an FTA with India. By forming FTAs with India, they can access the Indian market without these import duties on substantial trade. “Additionally, since India currently does most of its importing (over 75%) from countries it doesn’t have FTAs with, these agreements are particularly appealing as they offer a significant new market opportunity in India,” GTRI founder Ajay Srivastava said.The analysis of India’s three key FTAs with ASEAN, South Korea, and Japan signed in 2010-2011 reveals India’s merchandise trade deficit with these partners increased significantly more than its global trade deficit and India’s exports to these FTA partners have increased at a lower rate than its imports. Medium to high technology products constitute 70% of the global trade while 30% is traditional labour-intensive sectors. Developed countries charge zero or low import duties on most medium-to high-tech goods and high duties on shirts and shoes manufactured by developing countries. When a developing country enters into an FTA with a developed country, the developing country gets preferential access for its shirts and shoes in the developed country. In return, it has to remove duty on most products. The developing country gets additional market access in 30% of products while In contrast, the rich nation would get additional market access in 90% plus the value of products. Developed countries charge high 4-18% import duties on labour-intensive products like textiles and apparel and eliminating import duties should boost India’s exports. For exporting to the EU markets, Indian exporters pay the full duty, while exporters from Vietnam and Bangladesh pay zero duty. Vietnam has an FTA with the EU, while Bangladesh benefits from zero-duty access due to the EU Generalised System of Preferences scheme. While it may level the field for Indian exports, the gains from this to overall exports is limited. Then there is an issue of Non Tariff Barriers coming into play in the guise of environment, gender and labour standards which are built into all new FTAs. Despite lower duties offered by FTA with Japan, Indian exports of apparel could not grow because of the competition and product mix. India is refocusing its FTA strategy from East to West, targeting major world economies for FTAs in 2024-25. Notably, negotiations are underway with countries like the UK, USA, EU, Switzerland, Norway, and Russia. Switzerland and Norway are negotiating as part of the European Free Trade Association. This means by the end of 2024, India may have completed or nearing completion of an FTA with all major economies except China. A diverse range of countries, from large economies to smaller ones like Oman and Peru, are seeking FTAs with India, primarily due to India’s high import duties and rapidly growing market. Gains for India from tariff reduction by FTAs is limited so it must increase demand through better quality and wider range of products.It must prioritise obtaining real market access on the ground and negotiate new subject areas like environment, labour, and digital trade cautiously to avoid limiting domestic regulatory autonomy, the GTRI report said.
Source: Financial Express
ISLAMABAD: Merchandise exports grew for the fourth consecutive month in December, reaching an 18-month high, indicating a recovery of export-led industrial growth. In absolute terms, the export proceeds were recorded at $2.82 billion in December against $2.30bn over the corresponding month last year, indicating a growth of 22.21pc, data released by the Pakistan Bureau of Statistics showed on Tuesday. On a month-on-month basis, the export proceeds increased 9.29pc. The export of goods in the first half of FY24 increased by 5.17pc to $14.98bn against $14.24bn in the corresponding period last year.The continued rise in export proceeds in December suggests that the textile and clothing sectors are beginning to secure orders from global clients following a year of downturn. Caretaker Commerce Minister Gohar Ejaz stated that exports reached $2.8bn in December 2023 compared to the potential of $3bn per month. “We will soon achieve our capacity and then proceed to the next step,” he said, adding that the commerce ministry’s goal is to increase export-led development to $8bn per month through a new policy under the Special Investment Facilitation Council (SIFC) framework. Mr Gohar further said in a statement that the commerce ministry remains committed to strengthening Pakistan’s export potential and creating a conducive environment for sustainable economic growth. According to a preliminary report, the increase in overall export value was mostly driven by semi-finished goods in the textile sector, while value-added garment exports remained negative. Furthermore, in the non-textile sector, the export earnings of food goods, particularly rice and beef, have posted unprecedented increases in recent months. The commerce ministry has yet to announce the strategic framework to provide regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and diversification of products. However, the imports declined by 12.25pc to $4.52bn in December from $5.14bn in the same month last year. The negative growth in imports also continued for the last few months. On a month-on-month basis, the imports declined by 0.55pc. The import bill fell 16.28pc to $26.13bn in July-December FY24 from $31.21bn over the corresponding months last year. The imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22. The government has projected an import target of $58.69bn for FY24 against $55.29bn in FY23, an increase of $3.4bn or 8. 14pc.The trade deficit narrowed 34.29pc to $11.14bn in July-December FY24 from $19.96bn over the corresponding months of last year. The trade deficit contracted 40.13pc to $1.70n in December from $2.84bn over the corresponding month last year.
Source: Dawn
Texprocess is the leading international trade fair for the processing textile and flexible materials and the most important global meeting place for the apparel industry and textile processing sectors. The 2024 edition of the fair, which will be held from April 23-26 in Frankfurt, Germany, will showcase the latest innovations and advancements in textile processing. Set against the vibrant backdrop of Frankfurt, Germany, Texprocess will see exhibitors from over 40 countries presenting their latest machinery, equipment, technologies and services as well as IT and logistics solutions. “Innovations are presented to the public at Texprocess. The spectrum of products and services at Texprocess covers all process stages within the textile value creation chain – from design, cutting room and CAD/CAM through preparation for processing to the actual processing technologies themselves,” the German Machinery and Equipment Manufacturers Association (VDMA) said in a flyer about the event. Texprocess is co-sponsored by the VDMA Textile Care, Fabric and Leather Technology Association. The visitor target groups for Texprocess 2024 are people from the apparel industry; wholesale/retail sector; processors of textile and flexible materials; manufacturers of functional apparel, sports goods and outdoor equipment; manufacturers from the automotive, aerospace and aviation industries; manufacturers of household and home textiles, filters and packaging; manufacturers from the leather industry; service sector and skilled trades; and science and education. The various product groups that will be presented at the fair are: design, product development, automation technology; cutting, making, trimming section showcasing equipment, machinery and processes for cutting out, separating, straightening, die-cutting, inserting and pre-assembly; cutting room and automation technology, fusing, setting and manufacturing preparation; textile machinery, textile finishing, knitting technology, embroidery technology, stitching, joining and fastening technology, technical accessories for apparel; energy, air-conditioning, disposal and recycling; quality assurance, internal material flow, textile logistics, information technology, services, consultancy and training, research, development and education. At the previous edition, i.e. Texprocess 2022, 63,000 visitors from 86 countries came to find out about the new developments in the processing of textile and flexible materials offered by 1600 exhibitors from 29 countries. Techtextil, the international trade fair for technical textiles and nonwovens, will take place concurrent to Texprocess from April 23-26, 2024.
Source: Fibre2fashion
Chinese economy has shown sustained momentum and recovery amidst various challenges, according to Chinese President Xi Jinping. He pointed out that a range of advanced, smart, and green industries are rapidly emerging as new pillars, driving economic growth. However, the journey has not been without its hurdles. Some enterprises have faced tough times. The businesses, particularly in the transitioning economy, have had to contend with challenges, Jinping said in his 2024 New Year message. A significant concern raised by Jinping was the issue of employment. He noted that some people in China are struggling with job finding and meeting basic needs, indicating the need for more robust measures to ensure employment. “New progress has been made in fully revitalizing northeast China. The Xiong'an New Area is growing fast, the Yangtze River Economic Belt is full of vitality, and the Guangdong-Hong Kong-Macao Greater Bay Area is embracing new development opportunities. Having weathered the storm, the Chinese economy is more resilient and dynamic than before,” said Jinping.
Source: Fibre2fashion
