The textile and apparel industry is hopeful the interim budget will announce tax incentives and better textile infrastructure so that manufacturing and exports can be strengthened. In its pre-budget proposals, the Apparel Export Promotion Council (AEPC) has requested that tax concessions be provided to apparel manufacturers adopting ESG and other international quality standards and compliances. The textile and apparel industry is an integral part of India’s economy contributing approximately 2.3% to the GDP, 13% to industrial production and 12% to exports, according to Invest India. It is also the second largest employer in the country offering employment to 45 million people and 100 million in allied industries. The AEPC has recommended that trimmings and embellishments be included under Import of Goods at Concessional Rates of duty Rules (IGCR Rules). The industry body said that currently certain trims and embellishment items are not permitted and hence not entitled to duty exemption. “In order to maintain their brand image, foreign buyers insist on maintaining consistency and quality and avoiding use of counterfeits. Any deviation in the specification and quality results in the rejection of the shipment. Indian apparel exporters are constrained to use only those trimmings and embellishments, which are pre-approved by the buyer and these are mostly required to be sourced from overseas suppliers nominated by the garment buyers,” AEPC said. Industry players concur with AEPC’s suggestions saying that measures that support sector growth and address key challenges is the need of the hour. KK Lalpuria, Executive Director and CEO, Indo Count Industries, is hopeful that the upcoming budget will meet the diverse needs of the textile industry. “Stabilising raw material prices, strengthening supply chains and improving textile infrastructure are crucial for business empowerment and contributing to the nation's economy. We trust that the budget will reflect these expectations, leading to a strong and sustainable future for the textile industry,” he stated. Given that the textile industry's contribution to GDP is expected to double to 5% from the current 2.3% by the end of this decade, according to a report by CII and Primus Partners, offering budgetary incentives that can enhance competitiveness for the sector will be crucial for it to step up the momentum.
Source: Economic Times
The government is in the process of modifying the production-linked incentive (PLI) schemes for textiles, food processing, and pharmaceuticals. A cabinet note has been finalized to make these sectors more attractive for companies participating in the PLI program. The move aims to enhance investment in sectors beyond electronics, pharma, food processing, and telecom, which have been the primary beneficiaries of the PLI schemes so far. A ₹1.97 lakh crore PLI scheme covering 14 sectors, including textiles and pharmaceuticals, was announced in 2021. The government has begun the process to tweak production-linked incentive (PLI) schemes for textiles, food processing and pharmaceuticals, an official said, adding a cabinet note has been finalised to attract more companies in this programme. The move assumes significance as electronics, pharma, food processing and telecom have benefited the most from PLI schemes while other sectors are not performing that well. "A course correction was required in a few sectors to attract more investment," the official said. A ₹1.97 lakh crore PLI scheme was announced in 2021 for 14 sectors, including telecom, white goods, textiles, pharma, medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery and drones. The government has disbursed ₹4,415 crore under the scheme for eight sectors, including electronics and pharma, till October. In FY24, ₹1,515 crore were disbursed till October, as against ₹2,900 crore in the whole of FY23. As per the Department for Promotion of Industry and Internal Trade (DPIIT), 746 applications have been approved in 14 sectors with expected investment of over ₹3 lakh crore till date. About 176 MSMEs are among the PLI beneficiaries in sectors such pharma and telecom. Over ₹1.03 lakh crore of investment was reported till November 2023, which has led to production/sales of ₹8.61 lakh crore and employment generation (direct and indirect) of over 678,000. There are about 1,000 units under the scheme.
Source: Economic Times
The rupee appreciated 9 paise to 82.95 against the US dollar in early trade on Thursday as market participants remained cautious ahead of the interim Budget. Forex traders said the rupee was trading in a narrow range as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments. At the interbank foreign exchange, the rupee opened at 83.02 against the dollar and then touched a high of 82.95, registering a gain of 9 paise over its previous close. In initial trade, the rupee also touched a low of 83.03 against the American currency. On Wednesday, the rupee appreciated 6 paise to 83.04 against the US dollar. Forex traders said rupee traded in a narrow range and market participants remained cautious ahead of the interim Budget. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.24 per cent higher at 103.52. Brent crude futures, the global oil benchmark, fell 1.40 per cent to USD 81.71 per barrel. Indian rupee looks boxed between 83.00 to 83.20 narrowly as US Federal Reserve decided not to cut rates, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.
Source: Business Standard
Textile technology has a bright future, as students opting for related courses can get immediate employment, said K. Sunitha, Principal Secretary, Department of Handlooms and Textiles. Addressing an awareness programme on polytechnic courses, organised by the Handloom and Textile Department of the Guntur Institute of Textile Technology on Wednesday, Ms. Sunitha said that the objective of the programme was to inspire students to choose a career in the field of textiles, keeping in mind the promising opportunities. Students were advised to explore various courses emphasising the vast opportunities in the field of textiles, she said, adding that that immediate employment opportunities were available for students in the textile industry. She said students should apply for the Andhra Pradesh Polytechnic Common Entrance Test which was the gateway to future in textiles. District Collector Venu Gopal Reddy said that students should take advantage of the opportunities available locally for personal and professional growth. There was a bright future for textile courses at the national and international level, he added. Principal of the college Mohammad, General Manager of Jyotirmai Textiles B. Venkateswarlu and ATE Enterprises Sales Manager MD Qadeer Khan shared their industrial experiences in the textile sector with the students. AP Textiles Association Chairman Koti Rao, Vijnan University Assistant Professor Siva Jagadish Kumar, Textile Mills Association representative Raghuram Reddy, Handlooms and Textiles Department Joint Director Kanna Babu and others were present.
Source: The Hindu
Ahmedabad: Cotton spinning mills in Gujarat are taking a sustainable approach by recycling old clothes into recycled yarn. This eco-friendly initiative is gaining traction, with global brands actively retailing clothes made from recycled yarn. Typically, these recycled yarns consist of 70% of fresh cotton and 30% of recycled cotton yarn. Five spinning mills in the state have adopted this practice. Dr Bharat Boghra, chairman of the Spinners’ Association Gujarat (SAG), said, “The trend of recycling can be seen in various sectors. Five spinning mills have embraced this initiative due to growing demand, and more mills will follow suit if the concept proves successful.” Sources reveal that spinning mills reduce their reliance on the market by recycling old clothes. Omax Cotspin Pvt Ltd in Dhrangadhra, for example, recycles around 500 tonnes of old garments a month, producing recycled yarn to blend with virgin cotton yarn for global and domestic brands. Jayesh Patel, director of Omax Cotspin, said, “International consumers are aware about the usage of water, energy and manpower needed to produce clothes. Many global brands have set different goals for sustainability by 2030 and have increased focus on recycling to achieve their targets. We have installed a shredding machine in our factory and recycle around 500 tonnes of old garments every month. A number of global and domestic brands encourage the use of recycled yarn and we supply to them. We supply fresh yarn and recycled yarn based on demand.” Vaibhavlaxmi Spinning Mills Pvt Ltd in Kadi has also joined the initiative. Niranjan Patel, the company’s director, said, “We recycle waste generated during yarn-making and old fabric to turn it into fibre again. Increasing awareness of sustainability and steady demand for recycled yarn are driving factors.” The company incorporates 5-7% recycled yarn in its total production.
Source: Times of India
Despite reducing the rentals for shops at the newly constructed E.K.M. Abdul Gani Textile Market Complex in Erode city, traders are yet to participate in the auctioning process as shops are located in the second and third floors, said Erode Corporation Commissioner V. Sivakrishnamurthy on Wednesday during a council meeting chaired by Mayor S. Nagarathinam. Ward 43 councillor J. Saburama Minhaj of the Indian National Congress (INC) alleged that shops that were not present in the old premises were allotted spaces in the new complex during the auction held on January 24. She also claimed that shops that were auctioned for higher rent were allotted to traders at a lower rent.
Source: The Hindu
Global economic growth is projected at 3.1 per cent for 2024 and 3.2 per cent for 2025, according to the World Economic Outlook (WEO) update by the International Monetary Fund (IMF). This forecast marks an upward revision of 0.2 percentage points for 2024 compared to the October 2023 WEO. The improved outlook is attributed to greater-than expected resilience in the US and several large emerging market and developing economies, as well as fiscal support in China. However, the forecast for 2024–25 remains below the historical average of 3.8 per cent (2000–19). Factors contributing to this include elevated central bank policy rates combating inflation, withdrawal of fiscal support amid high debt, and low underlying productivity growth. Inflation is reportedly falling faster than expected in most regions, driven by unwinding supply-side issues and restrictive monetary policies. Global headline inflation is expected to decrease to 5.8 per cent in 2024 and further to 4.4 per cent in 2025, with the 2025 forecast revised downwards, as per IMF. The IMF notes that the risk of a hard landing has receded, balancing the risks to global growth. Upside possibilities include faster disinflation leading to eased financial conditions, and stronger structural reform momentum boosting productivity with positive cross-border impacts. Downside risks encompass potential new commodity price spikes from geopolitical events, persistent underlying inflation, deepening property sector issues in China, and fiscal tightening impacts. Policymakers face the challenge of managing the final descent of inflation to target, adjusting monetary policy in response to inflation dynamics. A renewed focus on fiscal consolidation is also suggested to rebuild budgetary capacity, raise revenue for new priorities, and curb public debt rise. Targeted structural reforms are recommended to enhance productivity growth and debt sustainability. The outlook highlights positive developments in Asia, with revised upward growth for both 2023 and 2024. For 2023, growth is now estimated at 4.7 per cent, up from the previous 4.6 per cent projection. This upward revision is mainly due to growth in China, supported by higher spending on disaster reconstruction, and strong domestic demand in India. The regional growth forecast for Asia in 2024 has also been upgraded to 4.5 per cent, from the earlier 4.2 per cent. Factors contributing to this include carry-over dynamics from 2023, a more supportive external environment, notably in the US, and a demand surge for technology products benefiting economies like Korea and Singapore. Additionally, countries like China and Thailand have announced significant policy stimulus, further bolstering the region's growth prospects.
Source: Fibre2fashion
According to the Circularity Gap Report 2024 launched by the Circle Economy Foundationover the past five years, the global discussion and debates around the circular economy have almost tripled. Despite the global circularity rate falling from 9.1% to 7.2%, the report identifies three main enablers, policy, finance, and labor that can drive sustainable progress worldwide. Let's move from theory to action and work towards a circular future. Fashion brands now have numerous circular policies to design and create clothing with CIRCULOSE which is a Next Generation raw material derived from the recovery of cellulose found in worn-out clothing and transformed into a dissolving pulp made from 100% recycled textiles. The pulp serves as the foundation for various types of regenerated fibers, including viscose, lyocell, modal, acetate, and other man-made cellulosic fibers. These fibers are then spun into yarns, woven or knitted into fabrics, and finally cut and sewn into new highquality textile products. Currently, viscose made with CIRCULOSE is also available from suppliers. The launch of the CIRCULOSE Supplier Network marks a significant milestone policy in the advancement of the circular economy in the fashion industry. By collaborating with leading yarn and textile producers, CIRCULOSE aims to revolutionize the way we approach fashion, fostering a circular future for the fashion supply chain. Henceforth, a group of forty-seven yarn and textile producers is motivated to drive the circular economy forward by enabling a steady supply of CIRCULOSE to the textile recycling innovation called CIRCULOSE Supplier Network (CSN). The first shipment of CIRCULOSE dissolving pulp was produced at Renewcell in December of last year. Renewcell is a pioneering leader in textile recycling innovation. They introduced the CIRCULOSE Supplier Network which is comprised of yarn and textile producers committed to advancing the use of CIRCULOSE in apparel production. It is offering brands and retailers a less wasteful and more circular fashion industry. Using a breakthrough process, this regenerated fiber fits in with Prosperity’s vision for a more resilient future – without compromising on quality and design. From that initiative accredited CIRCULOSE pulp is now being produced on a larger scale. With an initial annual capacity of 60,000 metric tons, Renewcell will be scaled up to produce 120,000 metric tons of pulp, equivalent to 600 million t-shirts. The Greensboro, N.C.-based mill with services in Mexico and China will take off its first collection using viscose made with Renewcell’s Circulose pulp at Kingpins New York Jan. 24-25. The first denim mill has been set up by Cone Denim in North America to join the CIRCULOSE Supplier Network. New denim fabrics are a share of Cone Denim's ongoing promise of sustainability and innovation in denim manufacturing. By using CIRCULOSE technology, Cone Denim is dedicated to considerably reducing its environmental impact by curtailing waste and conserving resources. Additionally, the use of recycled materials in these fabrics helps to promote circularity in fashion by keeping materials in use for longer and reducing reliance on virgin resources. Cone Denim’s design and product development teams have collaborated to bring two new fabrics, Wonderwall and Eden, to market. Both products were developed using viscose made with CIRCULOSE and will be featured at Kingpins New York. Maurizio Baldi, R&D Manager at Diamond Denim states, “Diamond Denim is investing in mechanical and chemical circular solutions that allow us to reduce our carbon footprint and water consumption. We believe CIRCULOSE is one of the best options to achieve our sustainability points without compromising fabric visual look and performance.” “In creating these products, we’ve challenged ourselves as denim producers to develop fabrics that promote circularity in fashion with increased percentages of circular and recycled raw materials,” said Pierette Scavuzzo, Director of Product Design for Cone Denim. “It was also essential in our design goals that these fabrics have extensive reach within a brand’s denim program to promote the scaling of this circular yarn innovation,” added Pierette Scavuzzo. The first style, Wonderwall, is a mid-weight, rigid fabric containing an innovative blend of Recycled Claim Standard (RCS) certified pre-consumer recycled cotton, Tencel, and 29% Regenerated Viscose made with CIRCULOSE. The denim fabric style is suitable for a variety of fits, sizes, and genders. The fabric character captures the spirit of Cone Denim’s Spring Summer 2025 collection concept “Etched in Texture” with plenty of surface texture and softness. The second style, Eden, is Cone Denim’s complimentary product to Wonderwall made with 31% Regenerated Viscose made with CIRCULOSE. This denim fabric combines the best of all worlds with the use of circular fibers, authentic texture, and stretch for added comfort. Eden’s stretch level is flexible enough to accommodate a variety of silhouettes. Cone Denim is focused on a sustainable future and has established targets for incorporating preferred fibers in the denim fabrics it designs, develops, and brings to market. Advancing the adoption of circularity is among several sustainability initiatives Cone Denim continues to pursue. Since 2022, Cone Denim has been actively participating as one of the U.S. trial partners for Accelerating Circularity, a nonprofit that catalyzes new circular supply chains and business models to turn spent textiles into mainstream raw materials. Through this program, Cone Denim has incorporated recycled and circular fibers into products at scale. This includes post-industrial waste (PIW) recycled cotton from its mills in China and Mexico. Cone Denim has invested more than $13 million in new equipment installation and advanced processes that lessen the environmental impact of its manufacturing operations. Cone Denim has a roadmap with established targets across water conservation, energy and greenhouse gas reduction (including validated science-based Based Targets), waste reduction, and sustainable product development to support the UN Sustainable Development Goals.
Source: Textile Today
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested Singapore Port Authority for speedy transshipment of Bangladeshi garment products. On Tuesday (January 30), a BGMEA delegation led by the organization's president Faruque Hassan met PSA International Limited Vice President Alfred Sim and Group Business Development Assistant Vice President Lim Wei Chiang. PSA International Limited, is a leading global company in port operations and logistics. In the meeting, issues of mutual interest were discussed with special emphasis on the process of transshipment of Bangladeshi export products through Singapore port. BGMEA president Faruque Hassan emphasized the need for seamless and speedy services for the transit of Bangladeshi export goods through Singapore. He also requested PSA International to consider expanding their services to Bangladesh and providing port services at competitive rates within a short period of time. The BGMEA delegation visited the Port of Singapore to experience the various services and port operations offered by PSA International. Alfred Sim and Lim Wei Chiang thanked the BGMEA delegation for the visit and assured the cooperation of PSA International to ensure speedy and smooth transhipment process of Bangladeshi export products. Asif Ashraf, Director, BGMEA; Shams Mahmood, BGMEA Standing Committee on Foreign Mission Cell Chairman; Azfar Hasan, Director, Giant Group; Sanjay Kumar Naha, Director, Rose Intimates Limited and Lutfun Nahar Shipu, Commercial Counselor of Bangladesh High Commission in Singapore were also present in the meeting.
Source: Textile Today
The year 2023 ended with many political and economic ups and downs. All over the world, especially in the big markets of Bangladesh's garment industry, Europe and America, where about 70 percent of apparel are exported, there has been an economic slowdown. Despite the global recession, there is a big investment in Bangladesh's garment industry in 2023. Bangladeshi entrepreneurs stepped up to set up around 134 new ready-made garment factories last year to tap the growing potential of the garment sector. Most of these factories are expected to start production within this year. According to Bangladesh Garments Manufacturers and Exporters Association (BGMEA) membership data, Badsha Group of Industries, Pacific Jeans Group, Ha-Meem Group, Sadma Group and Beximco have invested in 2023 to diversify their exportable garments. Of this, Badsha Group has invested Tk 800 crore in its Pioneer Denim at Madhavpur in Habiganj to set up a state-of-the-art unit with a target of $700 million in annual export revenue. Large scale production will start in 2024 where at least 15 thousand people will be employed in this factory. Currently the group has created employment for around 25 thousand people. Pacific Jeans has also invested $31.75 million in Pacific Apparels Limited in Chittagong EPZ. The new factory will manufacture luxury garments such as suits, blazers, jackets, coats, pants and casualwear. It is expected that this new unit will create employment opportunities for 9 thousand people in the next three years. Once fully operational, exports from here are expected to increase to $250 million. Focusing on diversification rather than increasing garment capacity, Ha-Meem Group launched three new production lines in April 2023 with plans to expand to 16 lines. According to BGMEA President Faruque Hassan, in the last two years, Beximco Group has got the largest number of factory memberships. In 2023, Sadma Group has accepted three permanent memberships in BGMEA. The group's knit composite Appropriate Apparel will employ 3,000 people and Mouchak Apparel will employ another 2,000. By 2024, the group's total workforce will be 18,000 and with current $100 million turnover the group targets to reach turnover of $250 million. Indet Group is establishing a green industrial park with an investment of around Tk 400 crore. The industrial park is expected to be operational by June 2024. The park will be a comprehensive source of accessories and packaging in the same arena. Team Group is investing around Tk 1,800 crore to expand its sweater and knit composite manufacturing capacity and set up new facilities including a denim garment unit, a zero-discharge washing plant and an outerwear factory with accessories and synthetic fiber based fabrics. Nipa Group, Windy Group, Shasha Denim and DBL Group also made significant investments.
Source: Textile Today
