New Delhi: The government will review the progress of the Production Linked Incentive Scheme (PLI) for all 14 sectors on January 12, an official said on Thursday. The meeting assumes significance as the government has disbursed Rs 2,900 crore till March 2023 under the scheme. The empowered committee in PLI has also approved Rs 1,000 crore disbursement to beneficiary firms of the electronics sector. The scheme was announced in 2021 for 14 sectors such as telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore "On January 12, there is a PLI review meeting," the official said, adding, "some PLI sectors are doing very well, others are in gestation period, and there are some which are lagging a bit, we expect to see a take-off very soon". The purpose of the schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive. The schemes have attracted over Rs 95,000 crore in investment till September 2023. According to the Commerce and Industry Ministry, 746 applications have been approved till November 2023 under these schemes. As per the ministry, of the USD 101 billion of total electronics production in 2022-23, smartphones constituted USD 44 billion. About PLI in white goods (AC and LED light components), the ministry has said that 64 companies have been selected under the scheme. Of this, 34 would invest Rs 5,429 crore for air-conditioner components and 30 would invest Rs 1,337 crore for LED component manufacturing. "Further investments of Rs 6,766 crore are envisaged creating additional direct employment of about 48,000 persons," the ministry has said, adding that 13 foreign companies are investing Rs 2,090 crore under the scheme.
Source: Economic Times
The textile sector is becoming increasingly attractive to various Indian states for rapid industrialisation. Following the launch of the new textile policy, Maharashtra is taking structured measures to attract an investment of ₹25,000 crore. The state is working to consolidate textile-related corporations and integrate the Textile Commissionerate and the Silk Directorate into a single entity. The Maharashtra government has decided to establish a new corporation by merging three textile corporations. In line with the Maharashtra Industrial Development Corporation (MIDC), the proposed Maharashtra State Textile Development Corporation (MSTDC) will be set up under the state's new Integrated and Sustainable Textile Industry Policy 2023-28, approved by the state cabinet in May 2023. The new textile policy aims to attract investment of ₹25,000 crore in the sector in the near future and boost investment in the state's cotton production industry. MSTDC will be established following the merger of three existing textile corporations of the state – Maharashtra State Handloom Corporation, Maharashtra State Powerloom Corporation Ltd, and Maharashtra State Textile Corporation. A committee of secretaries from textiles, finance, planning, industries, and law and judiciary will prepare a draft for the law to establish MSTDC. It is aimed at developing a sustainable and fertile environment for the textile industry's growth. The MSTDC will be statutorily set up on the lines of MIDC as announced in the Integrated and Sustainable Textile Policy 2023-28. According to the new policy, the Textile Commissionerate and the Silk Directorate will also merge to form the Textile and Silk Commissionerate, and the office at the regional level will be known as the Regional Deputy Commissioner – Textile and Silk. The state government also aims to establish six technical textile parks across the state under the new policy. The Maharashtra Technical Textiles Mission will also be undertaken to ensure the rapid growth of the sector.
Source: Fibre2fashion
Union Minister Piyush Goyal emphasized the significance of valuing domestic manufacturers within the textile industry to ensure its long-term success. Addressing the annual export award ceremony of the Man-made and Technical Textiles Export Promotion Council in Mumbai, Goyal stressed the need for collaboration among Indian industry stakeholders and support from government policies to strengthen the sector.
Importance of Supporting Domestic
Manufacturers Goyal cautioned that neglecting or discouraging domestic manufacturers could lead to shortterm benefits but significant losses in the long run. He urged the industry to prioritize domestic procurement and value addition within their final products to the highest possible extent. Additionally, he suggested the voluntary development of a system to determine the amount of domestic input in products to enhance transparency.
Cautious Approach to Imports While acknowledging the need for imports in certain cases due to expertise or availability constraints, Goyal advised caution when dealing with closed economies or heavily subsidized products. He emphasized the importance of safeguarding domestic interests and preventing unfair competition.
Government Support for Technology Development
The minister assured the industry of the government's readiness to invest heavily and support the development of advanced technology in India. This support aims to expand the industry's market footprint and enhance its global competitiveness. Active Participation in Skill Development Goyal also called for active participation in the Samarth program, a flagship skill development scheme in the textile sector. He proposed a collaborative approach between the private sector and the government, where industries would train a portion of their workforce and provide certification. The minister welcomed suggestions and ideas from the industry to modify and improve the training program. Piyush Goyal's address highlighted the crucial role of valuing domestic manufacturers, supporting skill development, and leveraging government initiatives to ensure the long-term success and growth of the Indian textile industry.
Source: Good Returns
A goods show room and warehouses for Indian goods will be set up in United Arab Emirates (UAE), Commerce and Textiles Minister, Piyush Goyal said Thursday. The planned ‘Bharat Park’ will facilitate other countries of the world to buy Indian goods, he said during and event organised by the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC). Expressing concern on Free Trade Agreements (FTAs) with Japan, Australia, UAE, and South Korea, he said that utilisation of benefits are very poor in India. He also said that Bureau of Indian Standards (BIS) will spend Rs. 40 crore for setting up 21 testing laboratories across the country. A SRTEPC statement said manmade fibre textiles sector is facing issues of inverted duty structure under the Goods and Services Tax (GST) regime. "There is 18% GST on fibres, 12% on yarns and 5% on fabrics. This is leading to accumulated input tax credits with the manufacturers, which i@ adding to their cost," the statement said.
Source: Economic Times
Synopsis India will eventually move to a lower customs duty regime and cannot continue protecting domestic manufacturers by citing the infant industry argument. The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh said tariffs are not considered a revenue source but are used as a policy tool to ensure higher protection for certain sectors to boost domestic manufacturing. India will have to eventually move to a lower customs duty regime and cannot continue to protect domestic manufacturers by citing infant industry argument, a senior government official said on Thursday. Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said that tariffs are not really considered a revenue source. Normally, customs duties or tariffs are used as a policy tool to ensure a higher level of protection for certain sectors to boost domestic manufacturing. "The DPIIT's view is that there are possibilities of using tariffs in a creative manner to protect some of our industries, particularly when they are subject to predatory pricing or dumping from certain geographies," he told reporters here.
While there is a need to protect sectors which are weak, there is no need to continue with the high tariff walls for segments that are doing well, he added. "But I think, over time, we will have to move to a lower tariff regime overall. The BCD (basic customs duty) will have to start coming down," Singh said, adding "We can not continue with the infant industry argument forever". These remarks assume significance as certain quarters of experts have stated that India should cut down its import duties to integrate with global value chains. However, some domestic industries like auto oppose that move. Talking about the domestic toy industry, the secretary said that with the help of measures like high customs duties and quality control orders, the sector is performing well. Domestic toy manufacturing is strengthening, exports are increasing, and imports are coming down, he said. Singh said that for the toy sector, the government is using high customs duties to provide a higher level of protection for some time. Without naming China, he said that some countries are using predatory pricing to dump goods and destroy local manufacturing. Duties on toys have been raised to 70 per cent from 20 per cent earlier. When asked if the government is looking to cut these duties, he said it will depend on the sector's performance going forward. "We are facing a situation where one geography (country) in particular there is a sustained intent to destroy the manufacturing ecosystem in other countries through predatory pricing, thereafter, enhancing their prices. So, we need to sort of calibrate our move accordingly," he added.
Source: Economic Times
Interim Budget: Though Finance Minister Nirmala Sitharaman has already made it clear that there won't be any “spectacular announcement” this time, as usual, expectations are running high ahead of the interim budget. From big conglomerates to the common man, everyone is keenly looking forward to Finance Minister Nirmala Sitharaman’s budget speech, slated to be delivered on February 1. The Modi government is known for springing surprises; thus, there could be some announcements on the PLI scheme front. This much-touted production-linked incentive (PLI) scheme was launched in the aftermath of the COVID-19 pandemic to give a big push to domestic manufacturing and to make it globally competitive in the long run. However, the primary goal of this program is to generate jobs, which India sorely needs. The government has stated that the PLI scheme could be extended to more sectors, and what would be a more opportune moment than the budget speech to announce that? The Centre made its intention clear at the very start of the New Year, as it extended the Production-Linked Incentive (PLI) Scheme for Automobile and Auto Components by a year by making a few amendments. These amendments aim to provide clarity and flexibility to the scheme. The incentive will now be applicable for five consecutive financial years, starting from fiscal 2023-24. As far as the performance of these schemes is concerned, there are some heartening numbers. The production-linked incentive (PLI) schemes for 14 sectors have attracted over Rs 95,000 crore in investment till September last year, according to the Commerce and Industry Ministry. Moreover, as many as 746 applications have been approved until November 2023 under these schemes. The sectors that come under the PLI scheme include electronics, telecommunication, pharma, white goods (AC and LED light components), and textiles. "746 applications have been approved till November 2023. PLI units are established in more than 150 districts (24 states). Over Rs 95,000 crore of investment reported till September, which has led to production/sales of Rs. 7.80 lakh crore and employment generation (direct & indirect) of over 6.4 lakh," the ministry said. It added that incentives worth around Rs 2,900 crore have been disbursed in 2022-23. The PLI schemes have been successful in achieving desired outcomes such as localisation of medical technologies, bulk drugs, electronics, and specialty steel, among others, top government officials said last month. Interestingly, many were expecting Sitharman to include more sectors under PLI in Budget 2023, but that didn't happen. But that could happen this time. In the 2019 interim budget, ahead of the polls that year, the Modi government threw up another surprise by announcing tax sops for India's lower and middle classes by raising the tax exemption limit from Rs 2,50,000 per annum to Rs 5,00,000 per annum. "PLI scheme is showing significant dividends across many sectors. The intention is to also roll out this PLI scheme for more labour-intensive sectors such as toys, leather and footwear and other such sectors where employment benefits will be more significant," Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh had said earlier.
Source: Economic Times
The rupee appreciated 5 paise to 83.19 against the U.S. dollar in early trade on January 5, supported by positive domestic equities and foreign fund inflows.
However, forex traders said the Indian currency remained under pressure amid a strong American currency and rising crude oil prices.At the interbank foreign exchange, the domestic currency opened at 83.23 and touched 83.19 against the greenback in initial trade, registering a rise of 5 paise from its previous close.
On January 4, the domestic currency settled at 83.24 against the dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07% higher at 102.49. The dollar was steady, heading for its strongest weekly performance on scaled-back expectations of steep and early rate cuts this year ahead of the closely watched U.S. payrolls data, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Global oil price benchmark Brent crude fell 0.37% to $77.88 per barrel.
As the Middle East disruptions remained, oil prices rose this morning after falling on Thursday due to a massive build-up in U.S. inventories in the final week of 2023. Brent oil was at $78 per barrel on January 5, Mr. Bhansali added. In the domestic equity market, the 30-share BSE Sensex was trading 216.19 points or 0.30% higher at 72,063.76. The broader NSE Nifty advanced 67.50 points or 0.31% to 21,726.10. Foreign institutional investors (FIIs) were net buyers in the equity market on January 4 as they purchased shares worth ₹1,513.41 crore, according to exchange data.
Source: Financial Express
India is likely to project higher economic growth estimates of around 7% for the 2023/24 fiscal year ending in March, compared with earlier government forecasts when the National Statistical Office releases its first advance GDP estimates on Friday. An increased estimate of annual gross domestic product is widely expected after the Reserve Bank of India (RBI) revised its own growth forecast last month to 7% for the current fiscal year, from an earlier estimate of 6.5%. The advance estimates of GDP, which go under six revisions over time, will be released on Friday at 1200 GMT. The central bank's revised growth forecast of 7% for 2023/24 was a "conservative estimate" considering robust growth reflected in high-frequency indicators data for October and November, Michael Patra, RBI's deputy governor said last month.Prime Minister Narendra Modi has increased state spending on infrastructure projects to bolster economic growth amid sluggish consumer spending, which, analysts said, is likely to help him win a third term in the national election scheduled before May. The Indian economy grew faster than expected 7.6% year-on-year in the September quarter, after growing 7.8% in the previous quarter, prompting many private economists to upwardly revise their yearly estimates. Among others, S&P Global Ratings expects India will remain the fastest-growing major economy for the next three years, setting to become the world's third-largest economy by 2030. S&P expects India, currently the world's fifth-largest economy, to grow at 6.4% this fiscal and estimates growth will pick up to 7% by fiscal 2027.In contrast, it expects China's growth to slow to 4.6% by 2026 from an estimated 5.4% this year.Economists said the RBI's monetary policy committee (MPC) is unlikely to cut the benchmark policy rate of 6.5% for the next few quarters amid the risk of a spike in food inflation in the election year.
Source: Business Standard
Coimbatore: Sardar Vallabhbhai Patel International School of Textiles and Management (SVPISTM) is organising ‘TEXCITEMENT’, a textile walkathon at Race Course on Saturday. The event is being organised as part of the Coimbatore Vizha, to celebrate the heritage of the Manchester of South India. More than 200 women and children wearing fashionable outfits will walk for a distance of 2km on Race Course Road, showcasing their outfits that reflect sustainability and recycling. The walkathon will commence at 8.30am. The outfits will be made of cotton, natural fibre, handloom, and feature natural dyes. Students of SVPISTM will use the platform to promote the conversion of Bhavani Jamakkalam (traditional blankets and carpets) into dresses. Outstanding costumes will be awarded prizes under two age categories including, 15 to 40 years and above 40 years of age. Abinithi Sammbavi Govind, fashion designer and founder of Sambavi.co will be the chief guest.
Source: Times of India
In September 2019, the Green Button was introduced in Germany, as the world's first government sustainable textile label designed to help improve textile production and label products that comply with social and environmental standards. “The Green Button is only awarded to products that come from responsible companies and have been produced with sustainability aspects in mind. At the start of the Green Button, these were particularly environmental requirements for bleaching and dyeing as well as requirements for social and working conditions during cutting and sewing” explains the textile label’s official website. Green Button 2.0 includes raw materials Now, there is also the Green Button 2.0, which expands existing criteria and also includes requirements for the sustainable extraction of raw materials. Products may only contain approved fibres and materials. As proof of sustainable production, the Green Button accepts certification labels that meet the credibility criteria of the German federal government and have evaluated the required social and environmental requirements in the supply chain. Companies must provide proof of corresponding certification labels for these supply chain stages. GOTS now accepted certification label The Global Organic Textile Standard, or GOTS for short, was recently added to the list of certification labels accepted by Green Button. It has successfully passed the benchmarking process and is now a recognised certification label for production process requirements (meta-seal approach) under Green Button 2.0. From now on, the GOTS certification label will be accepted for manufacturing and wet processes and as before for the fibre and material production for the use of plant-based and animal fibres and for the use of man-made fibres with a proportion between 10 and 30 percent in the final product. Currently, 16 established certification label are recognised, among them Bluesign Product, Cotton Made in Africa (CmiA), Fairtrade Cotton, Fairtrade Textilstandard, Global Recycled Standard, OekoTex Made in Green, Oeko-Tex Standard 100, Oeko-Tex Standard 100 „organic“ and Oeko-Tex Organic Cotton as well as the Responsible Down Standard, the Responsible Mohair Standard and the Responsible Wool Standard.
Source: Fashion United
The report published in the British newspaper Guardian about women workers in Bangladesh garment sector, tried to smear the honor of millions of women workers. Exporters' body BGMEA has termed the report as false and distorted. The Guardian has published such sensational reports without evidence several times before. BGMEA President Faruque Hassan said these things in a letter sent to British High Commissioner Sarah Cooke appointed in Dhaka on December 3. Referring to the negative impact of the Guardian's report, he requested the High Commissioner to raise the matter with the editor of the newspaper. BGMEA's letter also said that the report tried to portray Bangladesh's garment sector as a sector of oppression. The real truth is not revealed. The real truth is that the garment industry is playing an important role as a platform for the empowerment of millions of women in Bangladesh and their economic independence. Through this, these women are supporting their families and educating their children. A copy of the letter has been sent to the Prime Minister's Office, Ministry of Foreign Affairs, Ministry of Commerce, Ministry of Labor, High Commission of Bangladesh in the UK and other related departments. Recently a report was published in the Guardian quoting a Bangladeshi female garment worker. It is said that women garment workers are forced to work as sex workers at night due to rising cost of living due to inflation. When the report came to notice, BGMEA protested immediately. The organization termed the news as fake and deliberate. On 02 January, a protest rally was organized by seven federations of garment sector workers unions.
Source: Textile Today
Chinese textile company Shanghai Jingqingrong Garment, which supplies clothing for multinational fashion chains such as Japan's Uniqlo or Sweden's H&M and COS, will open its first textile factory outside China, in Catalonia. Chinese clothing manufacturers gain foothold on European soil with their own factories. This is the result of an investment project by the textile company that has received the support of the Catalan government. It is a recent example of the trend for Chinese garment and textile manufacturers to locate more within Europe. Shanghai Jingqingrong's textile company is located in the Catalan town of Ripollet, a few kilometres north of Barcelona, in the Vallès Occidental region. The plant's management is preparing to open in the first half of 2024 and create some 30 jobs. This is the result of an investment of around three million euros set aside by Shanghai Jingqingrong Garment to launch a new international knitwear production line. Producing knitwear is a category that textile companies in Catalonia have historically specialised in. The image of the industrial area has attracted the attention of the Chinese company, according to Roger Torrent, minister of enterprise and labour for the Catalan government, the department that supported the initiative through Acció, an agency that supports foreign investments and business competitiveness. "It is no coincidence that Chinese companies like Shanghai Jingqingrong Garment are starting their international expansion strategies from Catalonia, one of the most industrialised areas in Europe and one of the main gateways to the continent," Torrent said in a government statement. He further highlighted that "Chinese companies have invested more than one billion euros in Catalonia in the past five years", in "projects that have led to more than 2,000 jobs”.
Source: Fashion United
