Union Minister for Textiles, Piyush Goyal, said on Wednesday that Bharat Tex 2024 will play a crucial role in the growth of the textile sector in India. During a review of the steering committee ahead of the global textile mega event, Bharat Tex 2024, scheduled from February 26 to 29 at Bharat Mandapam and Yashobhoomi in New Delhi, Goyal engaged with representatives from textile export promotion councils and other stakeholders.Goyal emphasized the importance of ensuring the event's widespread inclusivity and shared his vision along with innovative strategies for the branding and promotion of Bharat Tex 2024. Additionally, he proposed the development of an online directory of all participating exhibitors, intended to function as a comprehensive encyclopedia covering all stakeholders in the textile industry.
Textile Industry Contribution
According to a report by Invest India, the country’s domestic apparel and textile industry contributes approximately 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports. The sector holds a 4% share of the global trade in textiles and apparel. With direct employment for 45 million people and 100 million people in allied industries, India's textiles and apparel industry is the second-largest employer in the country.India aims to achieve $250 billion in textiles production and $100 billion in exports by 2030.
Bharat Tex 2024 Highlights
Bharat Tex 2024, the world's largest textiles event, embodies India's 5F vision - Farm to Fibre to Factory to Fashion to Foreign. The expo aims to propel the growth of the textile industry and showcase India's potential as a mature, competitive global sourcing destination in the textile industry. Uttar Pradesh is participating as the partner state, and Madhya Pradesh as the focus state. The expo will witness exhibitors and buyers from over 40 countries, with expectations of over 1,000 exhibitors and more than 30,000 visitors. The event will feature knowledge sessions, seminars, conferences, CEO roundtables, B2B & G2G meetings, strategic investment announcements, product launches, and collaborations that will redefine the global textile industry. Under the National Technical Textiles Mission (NTTM), the Ministry of Textiles is organizing a hackathon titled “Fostering Innovations in Technical Textiles –Hackathon for unleashing creativity in technical textiles,” consisting of three phases: Ideation Phase, Development Phase & Presentation, and Judging Phase, covering 10 thematic areas in the domain of technical textiles.
Source: DD News
Union Minister Piyush Goyal, speaking at the UAE India Business Summit during the Vibrant Gujarat Global Summit, announced plans to promote RuPay and facilitate direct trade between the Indian rupee and UAE dirham.This strategic move is part of a broader objective to elevate bilateral trade to a substantial USD 100 billion, underscoring the diverse facets of the India-UAE partnership. Goyal highlighted the success of the India UAE Comprehensive Economic Partnership Agreement (CEPA) in boosting bilateral trade. He emphasised the need for innovative proposals from industry and business to further enhance this partnership. Collaborative efforts, such as the India-Middle East-Europe economic corridor, were also discussed. The summit showcased the strengthening bonds between the two nations, with Goyal commending the leadership of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi. Acknowledging financial initiatives, Goyal recognised the contributions of key figures such as Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade, and Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group. Noteworthy plans, like establishing a Bharat Park in the Jebel Ali Free Zone and investments by Yousuf Ali Abdulqader, Vice Chairman of the Abu Dhabi Chamber of Commerce, were also highlighted. Goyal concluded by inviting investors to participate in India's growth story, leveraging the nation's demographic advantage and young, aspirational population. The summit concluded with a resolute commitment to a lasting partnership between India and the UAE.
Source: KNN
The Ministry of Textiles under National Technical Textiles Mission (NTTM) is organizing a hackathon titled “Fostering Innovations in Technical Textiles –Hackathon for unleashing creativity in technical textiles” under “BHARAT TEX 2024” scheduled to be held on 26-29 Feb, 2024. The primary goal of the hackathon is to create a platform that brings together students, researchers, entrepreneurs, and industry professionals. This platform aims to raise awareness, stimulate innovation, encourage collaboration, and address real-world challenges in the field of technical textiles. National Technical Textiles Mission (NTTM), Ministry of Textiles, Government of India shall be the sponsor and partner for the hackathon. The textiles industry is undergoing a revolutionary shift, integrating advanced materials and innovations into traditional textiles, giving rise to the dynamic field of Technical Textiles. Recognizing the transformative potential of this sector, NTTM is a flagship scheme of Government of India. NTTM primarily focusses on research, development, and innovation (RD &I) along with education, skill, and market promotion for the technical textiles. NTTM has funded several projects in the form of ideation, prototype grants along with applied projects of national importance. Ministry of Textiles wants to show case the progress and achievements of prominent projects in the “BHARAT TEX 2024”. By participating in the hackathon, aspirants will have the opportunity to enhance their knowledge, build valuable connections, gain recognition for their contributions, and work on practical applications within the realm of technical textiles. The event seeks to foster an environment where participants can not only learn but also actively contribute to finding solutions for the challenges faced by the technical textiles industry. The hackathon will consist of 3 phases namely Ideation Phase; Development Phase & Presentation and Judging Phase with 10 thematic areas: Smart Textiles; Sustainable Textile; Medical Textile; Protective Textiles; Composites; Functional Fabrics; Development of Specialty Fibres and high-performance fibers; Development of Indigenous Machinery/Equipment/Instruments; Integration of Technical Textiles with applied sciences and Engineering and any other areas in the domain of technical textiles. The top 3 winners may be considered for funding under the Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) for a grant amounting up to INR 50 lakhs for a period of maximum 18 Months subject to fulfilment of other eligibility criteria of the GREAT scheme. The top 3 winners may be considered for funding under the Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) for a grant amounting up to INR 50 lakhs for a period of maximum 18 Months subject to fulfilment of other eligibility criteria of the GREAT scheme.
Source: Ten News
India is actively seeking expanded market access for its textiles sector as part of ongoing free trade negotiations with countries such as the United Kingdom and Oman, revealed Textiles Secretary Rachna Shah on Tuesday. “Textiles would be one of our major interests in getting more concessional access,” Shah told reporters. The Textiles Secretary further acknowledged the impact of reduced demands in the US and European markets during the current fiscal year. Despite continuing efforts to strengthen ties with these regions, India is exploring additional markets for textiles, including Australia, the United Arab Emirates (UAE), and Japan, where free trade pacts have already been signed. To enhance textiles production, Shah added, the Indian government is implementing strategic initiatives such as the Production-Linked Incentive (PLI) scheme and PM Mega Integrated Textile Regions and Apparel (PM-MITRA) parks. Under PM-MITRA, plans include establishing seven mega textiles clusters in states like Karnataka, Tamil Nadu, Telangana, Gujarat, Madhya Pradesh, Uttar Pradesh, and Maharashtra. Rohit Kansal, Additional Secretary, Ministry of Textiles, stated that land acquisition for almost all proposed textiles parks has been completed, with Karnataka's park slated for Kalaburagi district, reported DH. The state has allocated 1000 acres near Ferozabad at Kalaburagi-Jewargi Road for this purpose. Kansal expressed optimism about significant progress this year, mentioning ongoing work to form Special Purpose Vehicles (SPV) for infrastructure development at the mega parks. Each park's leadership will be entrusted to an SPV, established as a joint venture between the central government and respective state governments. The states will hold a majority 51 per cent stake in the SPV, while the central government will retain the remaining 49 per cent. Notably, MoUs totalling over Rs 13,000 crore have been signed with various companies for the development of these mega parks, Kansal added. “Through PM-MITRA parks, we are hoping to integrate the entire value chain. That will help reduce logistics costs and we will be able to set up integrated units,” said Textiles Secretary Shah. The central government is set to provide Rs 500 crore in financial support for infrastructure development at each park, with an additional Rs 300 crore as incentives for early-stage unit startups, Shah added. The envisioned mega parks, she added, aim to boost the competitiveness of the Indian textiles industry by achieving economies of scale and attracting global players to invest in manufacturing within the country.
Source: KNN News
The Directorate General of Systems and Data Management, CBIC issued Advisory No: 06/2021 dated January 05, 2024 for E-scrip to avail Export Incentive Schemes (RoSCTL, RoDTEP). E-scrip module is developed by ICEGATE, CBIC to provide a digital service to exporters to avail benefits defined under various incentive schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies). The scheme provides for rebate of Central, State and Local duties/taxes/ levies which are not refunded under any other duty remission schemes. The broad provisions are as under: I. To avail the scheme exporter shall make a claim for RoSCTL/RoDTEP in the shipping bill by making a declaration. II. Once EGM is filed, claim will be processed by Customs. III. Once processed, a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the users account at ICEGATE IV. User can create an e-scrip account under E-scrip tab. This can be done by the IECs who have registered on ICEGATE with a DSC. V. Exporter can log in into his account and generate scrip after selecting the relevant shipping bills. It has been decided that for the Chapters 61, 62 and 63, RoSCTL would continue to be given beyond December 31, 2020 and till December 31, 2024 instead of RoDTEP. Implementation of RoSCTL scheme in Custom Automated System has been developed with details in Annexure B (Page 18). As of now the users can log into their ICEGATE account and create the e-scrip Account, as scrip generation provision will be made functional on the issuance corresponding notification by the department and availability of the budget. Implementation of RoDTEP scheme in Custom Automated System has been developed. Details attached as Annexure A (Page 16). This advisory is a complete step-by-step guide for the user to create an e-scrip account, generate scrips and transfer the scrips to any other IEC to avail the benefit of the scheme. ▪ E-scrip Account Access: ▪ Scrip Management Module: ▪ Scrip Generation ▪ Viewing Scrip details: ▪ Transaction Details: ▪ Scrip Transfer: ▪ Approve Scrip Transfer Request ▪ Annexure A: ▪ Annexure B.
Source: Taxcorp LLP
There is a need to rationalise customs duties particularly in those sectors which are growing at a healthy pace for the last several decades, an official said on Thursday. The official, however, said that providing a protection of high duty is required for the infant domestic industry. "But if the industry is 40-50 years old and has developed, has good competition, good investments and if they are globally known, then they should also be competing with the global firms," the official argued. 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. These remarks assume significance as there is demand from countries which are negotiating free-trade agreements with India to cut down import duties in sectors such as auto and alcoholic beverages. Overall duties in certain segments are up to 150 per cent like alcoholic beverages. "There is a need for balancing in the duty structure. One country has less duty and other will have high taxes, this can not happen," the official added. Given certain disability factors in India like high interest rates, problems in getting land and some hidden cost, there is a requirement to provide protection to domestic industries to provide a level-playing field with firms of the developed nations. But for that disability factor, one can provide a certain level of protection to domestic industry but not at the level of 100 or 150 per cent, the official argued adding "our argument is that duties should be rationalised". Industry body India Cellular and Electronics Association (ICEA) has recently stated that import duty cuts on mobile phone components can increase domestic production of handsets by 28 per cent to USD 82 billion and boost exports, crucial to support indigenous manufacturing. ICEA Chairman Pankaj Mohindroo has said that the next phase of mobile manufacturing growth has to come from exports as the production for the local market is close to saturation.
Source: Business Standard
The commerce department has initiated an inter-ministerial consultation with top officials from four ministries --- external affairs, defence, shipping, and finance ministry to formulate measures to tackle the impact on trade due to the ongoing Red Sea crisis, a senior government official said on Thursday. The recent attacks by Houthi militants in the Red Sea have effectively closed one of the world’s main trade routes. As a result, the cost of freight and insurance has risen since shippers are now diverting their consignments through the Cape of Good Hope route. “Inter-ministerial consultation with officials from the department of commerce, ministry of defence, finance (department of financial services), shipping and external affairs will take place next week. There will be discussions on the measures that can be taken,” a senior government official said. As exporters are feeling the pinch of the additional freight cost, some shipments are being held back. Containers could face delays of 12-14 days in their turnaround time although there was no shortage of containers. The government fears this will become a major cause of concern if this crisis continues. Last week, Commerce Secretary Sunil Barthwal chaired a meeting with exporters and concerned stakeholders to understand their challenges. “During the stakeholder consultation, we discussed the issue faced by them. The stakeholders pointed out that only 8 per cent of trade is using the Red Sea route, while the remaining 92 per cent is taking the Cape of Good Hope. An additional congestion charge (levied during this season) has also contributed to the higher freight cost,” the official said. Since the shipments to the United States (US), Europe, and West Asia are being affected due to the disruption, the government will attempt to divert more trade towards the east, especially to Australia, since a free trade agreement is already in place with that country. According to an initial assessment conducted by a New Delhi-based think tank Research and Information System for Developing Countries, India may face a $30 billion impact on its exports due to the crisis. Last year, India’s exports stood at $451 billion. The commerce department is also computing the official estimates on the impact of the Red Sea crisis on exports. It is expected to share the data on the estimated impact next week. Separately, it has also set up a ‘strategy group’, to deal with the geopolitical challenges the world has been facing over the past two years.
Source: Business Standard
The manufacturers and exporters, who have set up stalls at Heimtextil, the annual textile fair which is being held in Frankfurt in Germany, expressed hope that the fair would help them fetch more orders for home textiles in 2024-25.The fair, which is considered as world’s largest textile fair, is held every year in the second week of January in Frankfurt. The exhibition, which opened on Tuesday, will close on Friday. According to sources, more than 3,000 textile manufacturers and wholesalers have displayed their products in this exhibition. Of them, 448 textile manufacturing companies are from India. Sixty-nine textile manufacturing companies from Karur and 135 companies from Panipat were among those participating companies. Karur exporters have surpassed last year’s participation of 62 companies. The manufacturers and exporters, who have set up stalls at Heimtextil, the annual textile fair which is being held in Frankfurt in Germany, expressed hope that the fair would help them fetch more orders for home textiles in 2024-25. The fair, which is considered as world’s largest textile fair, is held every year in the second week of January in Frankfurt. The exhibition, which opened on Tuesday, will close on Friday. According to sources, more than 3,000 textile manufacturers and wholesalers have displayed their products in this exhibition. Of them, 448 textile manufacturing companies are from India. Sixty-nine textile manufacturing companies from Karur and 135 companies from Panipat were among those participating companies. Karur exporters have surpassed last year’s participation of 62 companies. The participants hope that the show will spur growth as the show comes amid a slowdown in the home textile industry over the past 18 months due to global economic downturn. “We get a steady stream of quality visitors comprising wholesale and retail merchants and agents across Europe, the U.S., and others. The enquiries are better than last year. It gives confidence that the 2024-25 year will boost exports,” said P. Gopalakrishnan, president of Karur Textile Manufacturers and Exporters Association, who has set up a stall at the fair. He told The Hindu that the annual fair invariably fetched at least 50% of export orders for Karur-based textile units. The average exports from Karur hovered around ₹6,000 crore a year. However, the volume of exports was not robust in 2023-24 due to the impact of the global meltdown. Most of the exhibitors from Karur had received a record number of visitors during the current fair. The quality of enquiries would make a positive impact on overall exports from Karur in 2024-25, said Mr. Gopalakrishnan, who is the Chairman of Handloom Export Promotion Corporation.
Source: The Hindu
India may consider restarting talks on the trade deal only after federal elections scheduled in Canada in October 2025, the person said. If there is a change of guard in Canada, it could help resume negotiations, the person said. News of the stalled India-Canada free-trade talks came in around the G20 Summit in New Delhi last September. Prime Minister Narendra Modi reportedly had also pulled aside his Canadian counterpart during the summit to raise the issue of Khalistani activists, who are seeking an independent state carved out of India. As per foreign media, the decision to pause the talks originated in Ottawa as relations between the two nations were strained following the rise of the Khalistani movement in Canada. Canadian trade minister Mary Ng suggested in November that her country won't restart the trade talks until India cooperates with the investigation into the murder of Sikh activist Hardeep Singh Nijjar in Vancouver. This was after Canadian Prime Minister Justin Trudeau claimed in parliament on September 18, 2023, that there was evidence linking Indian government agents to the murder of Nijjar. Responding strongly, India termed the allegations unsubstantiated and absurd and a means to derail focus on Khalistani extremism. India has asserted that Trudeau’s government has been lenient towards pro-Khalistan violence, an issue that New Delhi has raised consistently over the past few years. There are expectations that ties between India and Canada may see a course correction if a new regime is voted to form the government in Ottawa. Recent surveys show that Trudeau’s Liberal Party is trailing its Conservative rivals by a significant margin. Negotiations for a free trade deal between India and Canada were re-launched in March 2022 after a hiatus of about a decade with as many as nine rounds of talks conducted between the two countries till July 2023. Before diplomatic ties nosedived, both sides expected to sign an interim free trade deal by 2023, a precursor to a Comprehensive Economic Partnership Agreement. Trade between India and Canada is largely balanced, totalling about $8 billion annually, with Ottawa accounting for less than 1 percent of India’s total trade.
Source: Money Control
In the UK market, Bangladesh's manufactured garments have the second largest position in terms of volume, but the price is much lower than that of all other exporters. Even India, which ranks fourth, has 27 percent more clothing prices than Bangladesh. Apart from India, China and Türkiye are leading in terms of prices. According to a statement sent by BGMEA on Tuesday (January 9), the average price of Bangladeshi clothing in the UK market is 26.75 percent lower than India, 21.39 percent lower than China and 32 percent lower than Turkey. BGMEA feels that Bangladesh does not get fair price due to low exports of mid-high value garments to the UK market. At the same time, Bangladeshi exporters fear of losing orders and demand lower prices of clothes from buyers. BGMEA President Faruque Hassan said, “When we calculate the average price of UK apparel imports, Bangladesh offers the lowest price compared to other competitors.” “This situation not only proves that we are not in a competitive position in the global market. At the same time our absence in the mid-high price segment of the market is also glaringly evident. At the moment, to take the industry further, we need to strategize to capture the mid-high price segment,” he added. Noting that holiday sales from December 2023 are also not promising, Faruque Hassan said, "Looking at clothing retail sales in the UK from December, a bleak picture is seen. On the other hand, this gap in terms of price and volume in imports has created upward pressure on price levels, which is a concern for us.” According to BGMEA, pre-Covid UK apparel imports from around the world were $16.83 billion in 2018, falling to $16.45 billion in 2019. Apparel imports recovered to $17.34 billion in 2022. While the positive growth momentum is expected to continue in 2023, the reality is that the UK's global apparel imports between January and October this year fell by 16.44 percent in terms of value and 12.20 percent in terms of volume compared to the same period last year. According to BGMEA, Bangladesh's market share by value is 23 percent and 28 percent in terms of total garment exports to the UK market.
Source: Textile Today
Bangladesh’s National Board of Revenue (NBR) recently lifted value-added tax (VAT) on port services for raw material imports and finished goods exports by export-oriented industries in the country. Around 45 per cent of containerised goods, primarily raw materials, imported through Chittagong port attracted VAT, raising the cost of exports, mainly garments. The government decision was welcomed by exporter bodies, especially those of readymade garments. The VAT, being levied on service charges, causes an additional cost of over Tk 1,000 per twenty-foot equivalent unit container, according to domestic media reports. The reinstatement of the VAT exemption is expected to provide significant relief to exportoriented industries and boost their competitiveness in international markets.
Source: Fibre2fashion
US container import volume increased by 0.4 per cent in December last year from November to 2,107,012 twenty-foot equivalent units (TEUs), according to the January Global Shipping Report for logistics and supply chain professionals released by Descartes SystemsGroup, which offers cloud-based logistics and supply chain solutions.Versus December 2022, TEU volume was higher by 9.2 per cent, and up 10.6 per cent from pre-pandemic December 2019. The growth in import volume for all of 2023 is within 4.6 per cent of the same period in 2019, but down 11.7 per cent versus 2022.
Source: Fibre2fashion
The Dutch manufacturing industry experienced a notable 10 per cent decrease in average daily output in November 2023 compared to the same month in 2022, according to the latest data from Statistics Netherlands (CBS). This trend of year-on-year (YoY) contraction in output has been consistent in the preceding months of 2023, with most industries producing less than in the previous year. After adjusting for seasonal effects and working-day patterns, the manufacturing output in November 2023 fell by 0.8 per cent from October, reaching its lowest level in three years.In December 2023, Dutch manufacturers' sentiment turned more negative compared to the previous month. The primary concerns among manufacturers were regarding order positions and the expected output over the next three months, indicating a cautious outlook for the industry's future., as per CBS. Germany, a key market for the Dutch manufacturing industry, also reported a downturn in its manufacturing output. According to Eurostat, German entrepreneurs were slightly less negative in December than in November. However, data from Destatis revealed that the calendar-adjusted output of the German manufacturing industry in November was down by 4.5 per cent YoY, and it also fell by 0.4 per cent relative to October.
Source: Fibre2fashion
