Ludhiana: Rajya Sabha MP Sanjeev Arora raised the industrial hub’s ailing textile industry’s concern about the unrestricted dumping of fabric imported from China at “unfair import duty” in the domestic market in the parliament’s ongoing budget session. The MP also demanded immediate action to protect the domestic textile sector. Arora said unfair dumping of synthetic knitted fabrics has created immense pressure on domestic players, jeopardising jobs, revenue, and the very core of production capacity He said, “Polyester industry, currently operating at 70%, faces an unprecedented threat due to unfairly priced imports from China For the past year. This threat has the potential to cripple Indian Industry, reducing capacity to less than 50% and causing widespread job and revenue losses.” Arora said steps must be taken to restrict the import of fabrics from China and protect vital Indian industry.
Source: Times of India
A Parliamentary Committee has emphasised the need for a comprehensive National Textile Policy to enhance the global competitiveness of the Indian textile industry. The committee presented its report on Estimates 2023-24 on Empowerment Through PM Mega Integrated Textile Region and Apparel PM MITRA Parks Scheme and Revival Efforts For Sick Textile Units/PSUs Pertaining to Ministry of Textiles, highlighting crucial recommendations for the textile sector. The committee encouraged the Ministry of Textiles to develop a comprehensive strategy, acknowledging the importance of coordinating proactive and industry-focused State Textile Policies/schemes with a National Textile strategy. To make the Indian textile sector competitive on a global scale, this strategy should integrate industry-focused elements of state textile policies with best worldwide practices. The committee emphasised the significance of swiftly reaching a resolution in order to revitalise the nation’s ill textile plants. It suggested that an action plan be created and shared with all relevant parties in order to address problems associated with each ill textile unit in a timely manner. The research underlined the necessity of the Centre and State Governments resolving land-related disputes expeditiously. It further recommended that legal professionals be consulted wherever possible in order to resolve conflicts through Alternative Dispute Resolution procedures. After the Government acquires dispute-free title to the assets, the committee stated that it would like to see private investment put towards the revival of non-operational sick textile undertakings/units, including the creation of PM MITRA PARKS. The objective of this approach is to utilise the resources and skills of the private sector to revive distressed textile businesses.
Source: Apparel Resource
As our nation's backbone, the Micro, Small, and Medium Enterprises (MSME) sector plays a pivotal role in fostering employment opportunities and reducing regional imbalances. In a significant stride towards fostering digital inclusion in the MSME sector, the Quality Council of India (QCI) and Open Network for Digital Commerce (ONDC) are proud to announce the launch of the DigiReady Certification (DRC) portal. For the initiative, QCI, in conjunction with ONDC, aim to assess and certify digital readiness of MSME entities. By leveraging this online self-assessment tool, MSMEs can evaluate their preparedness to seamlessly onboard as sellers on the ONDC platform, thereby expanding their digital capabilities and business potential. The DRC portal is meticulously designed to facilitate a streamlined seller journey, ensuring that MSMEs and small retailers can integrate seamlessly into existing digitized workflows. The certification process evaluates various aspects of digital readiness, including the presence of necessary documentation for online operations, proficiency in using software and technology, integration with existing digitized workflows, and efficient management of orders and catalogue offerings. On this occasion, Shri Jaxay Shah, Chairperson, QCI, stated that “DigiReady Certification (DRC) initiative is in line with our Hon'ble Prime Minister's call to sensitize villages and promote digital transactions. It also resonates with the objectives of the recently launched FIRST (Forum for Internet Retailers, Sellers, and Traders). The launch of the DRC portal marks a pivotal moment in our mission to empower MSMEs and make e-commerce more inclusive and accessible.” Mr T Koshy, MD & CEO, ONDC remarked, “The DigiReady certification (DRC) can be a transformative leap for MSMEs, equipping them with the digital capabilities needed to navigate the evolving ecommerce business landscape. DRC accelerates the integration of MSMEs into the Network while also amplifying their potential to thrive in the digital economy. It's a testament to our commitment to foster digital inclusion to enable a more robust and empowered future for everyone.”
Source: PIB
Officials from ministries of finance, shipping as well as commerce and industry on February 7 discussed problems being faced by exporters due to the Red Sea crisis and the commerce ministry suggested sharing specific matters for their resolution, an official said. The official also said that so far there is no adverse impact on the country's exports due the crisis so far. However, according to exporters, the impact is likely to figure in the numbers of March April.
Source: PTI News
NEW DELHI : The selection of infrastructure developers for seven mega-textile parks will be completed by the end of March, two officials said, as India makes a push for becoming a textile manufacturing hub. These so-called master developers will build the seven parks—under the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) scheme—with an investment of ₹12,000 crore.
Source: Mint Live
India should seek deferment on imposition of carbon tax by the European Union (EU) on engineering sector's MSMEs by three years as domestic manufacturers may not have the financial resources to counter the duty, according to a parliamentary panel's report. The report recommended that developing a robust mechanism to support and equip MSMEs to counter the adverse effects of CBAM (carbon border adjustment mechanism) must be implemented on a priority basis.
Source: The Hindu
The transformation from the conventional sector to technical textiles is considered a crucial solution for the industry’s challenges in Punjab, offering significant opportunities. Entrepreneurs, industry leaders, and experts from the Confederation of Indian Industry (CII) have revealed that Ludhiana’s textile industry is actively pursuing a revival strategy by concentrating on the potential of technical textiles. The transformation from the conventional sector to technical textiles is considered a crucial solution for the industry’s challenges in Punjab, offering significant opportunities. The local industry possesses immense potential to contribute to the rapidly advancing technical textile sector. Stakeholders and experts expressed confidence in the existing infrastructure and the local skilled workforce, positioning them as competent to facilitate the transition into the technical textile sector. Despite the optimism expressed, challenges related to raw materials were acknowledged. Technical textiles, which are characterised by engineered products with specific functionalities beyond basic clothing needs, are seen as the pathway to rejuvenate the textile sector. Chairperson of the Punjab Chapter of CII, PJ Singh, noted India’s emergence as a key player in the dynamic field of technical textiles. Singh added that the market size for technical textiles is projected to reach a staggering $ 309 billion in 2047. He also pointed out that while a few big players are manufacturing the raw material, a majority of the industry is dependent on its import. Vinod Thapar, President of Knitwear and Textile Club, shared optimism after government representatives at the conference pledged support. General Secretary of the club, Chirnajiv Singh, emphasised the growing demand for technical textiles and the industry’s willingness to make the shift.
Source: Indian Textile Journal
The Reserve Bank of India’s (RBI) monetary policy committee today announced keeping the repo rates unchanged for the sixth consecutive time at 6.5 per cent. The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the bank rate at 6.75 per cent. The committee met from February 6 to 8. The repo rate is the rate of interest at which RBI lends to other banks. The committee also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. The decisions are aimed at achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus or minus 2 per cent, RBI said in a release. Announcing the bi-monthly monetary policy, RBI governor Shaktikanta Das said food inflation needs to be monitored so that the benefits gained do not dissipate. The inflation trajectory would be shaped by the evolving food inflation outlook and domestic economic activity is strengthening, the monetary policy statement noted. CPI inflation is projected at 5.4 per cent for fiscal 2023-24 (FY24) with the fourth quarter (Q4) at 5 per cent. Assuming a normal monsoon next year, CPI inflation for FY25 is projected at 4.5 per cent, with Q1 at 5 per cent; Q2 at 4 per cent; Q3 at 4.6 per cent; and Q4 at 4.7 per cent, the statement said. As per the first advance estimates released by the National Statistical Office, real gross domestic product (GDP) is expected to grow by 7.3 per cent year on year (YoY) in FY24, underpinned by strong investment activity. Real GDP growth for FY25 is projected at 7 per cent, with Q1 at 7.2 per cent; Q2 at 6.8 per cent; Q3 at 7 per cent; and Q4 at 6.9 per cent, the statement added.
Source: Fibre2fashion
Kolhapur: Restrictions on the import of ready-made garments, a subsidy of Re 1 per unit of power consumed and a 5% discount on the interest over loans taken for expansions are some of the suggestions of the panel appointed to examine the concerns of powerloom owners. The 14-page report, which has 20 suggestions, was prepared after month-long deliberations with stakeholders and has been submitted to state textiles minister Chandrakant Patil. Other suggestions by the panel include the relaxation of norms for the registration of small-scale powerloom units. Around 12.7 lakh powerlooms in the state provide direct employment to 30 lakh people. Of the 12.7 lakh looms, around 85% of them are plain, while the remaining are advanced and have automatic shuttles. The panel, headed by minister Dada Bhuse, has recommended the setting up of garment testing labs in Nagpur, Solapur, Bhiwandi, Malegaon and Ichalkaranji – the major textile zones of the state, establishment of mini-textile parks and the inclusion of the garment sector in the ‘one district, one product’ scheme of the central government. It has also suggested restrictions on the import of ready-made garments, especially from Bangladesh, as it is leading to acute shortages for domestic powerloom owners. Patil will table the report before the Cabinet before it goes to chief minister Eknath Shinde for approval.
Source: Times of India
The index for Australia’s industrial sector experienced a significant downturn in December2023/January 2024, dropping 4.9 points to a seasonally adjusted minus 27.3 points, according to the latest report by the Ai Group. This decline marks a continued trend of contraction, which has now persisted for twenty-one months. The Australian purchasing managers’ index (PMI) (all manufacturing) also showed signs of struggle, albeit with a slight improvement of 1.5 points, yet still remaining in contraction at minus 23.8. This downturn has been consistent since September 2022, attributed to lower productivity due to holiday shutdowns, increasing input costs, supply delays, and ongoing recruitment difficulties. Industry activity saw a further decline, with the activity indicator dropping 7.5 points to minus 37.2, the lowest since the pandemic lockdowns of 2020. This negative trend has spanned over twenty-one months, reflecting a broader industry downturn. Employment in the sector also contracted further, with the indicator falling 1.5 points to minus 5.2 in December/January. However, employment levels have seen some stabilization around minus 4.5 over the last four months, despite challenges in hiring qualified staff and weaker customer demand, as per the Ai Group. New orders plummeted by 15.3 points to minus 45.3, marking the lowest reading since the inception of the Ai Group's index in January 2020. This decline has been part of a negative trend since July 2022. Although there was a slight improvement in input volumes compared to November, the indicator remained in contraction at minus 4.8, a trend that has persisted for the past two years.
Source: Fibre2fashion
In a bid to diversify its operations, Deshbandhu Group is embarking on its largest polyester venture in Bangladesh, targeting the robust investment potential in the sector. The project entails establishing a 1,600 TPD continuous polymerisation (CP) unit, accompanied by downstream facilities comprising 1,200 TPD bottle grade chips and 400 TPD textile-grade chips.To facilitate this ambitious endeavour, Deshbandhu Group recently inked contracts with China National Chemical Engineering International Co Ltd and Chemtex (China) Engg Co Ltd. The proposed site spans 33 acres within the Powerpack Economic Zone in Mongla, Bagerhat. At the contract signing ceremony, attended by dignitaries such as senior secretary and Beza executive chairman Sheikh Yusuf Harun, Deshbandhu Group emphasised the strategic importance of this project in meeting the escalating demand for textiles and polyester in the region. The polyester chips produced will serve as crucial raw material for downstream industries including handloom, knitting, wet processing, and garment manufacturing. This initiative is expected to position Bangladesh as a key player in the global polyester industry, catering to both the domestic and global markets.Recognising the significance of value addition, Deshbandhu Group plans to leverage imported feedstocks such as MEG and PTA for its CP unit. These feedstocks will undergo further processing to produce manmade fibres and yarns, contributing to the country’s textile and garment manufacturing sector. This ambitious polyester project aligns with Bangladesh’s vision to capitalise on its growing textile and garment industry and establish itself as a prominent player in the global polyester market.
Source: Fibre2fashion
At the end of January this year, China's foreign exchange (forex) reserves were worth $3.2193 trillion, down by $18.7 billion, or 0.58 per cent, month on month, according to data released recently by the State Administration of Foreign Exchange (SAFE). The decrease was primarily due to developments like a rise in the US dollar index and mixed global financial asset prices, SAFE said in a statement. Factors like stable production and booming holiday consumption have kept Chinese economic operations stable in general, a state-controlled media outlet reported.
Source: Fibre2fashion
In a session of the parliament recently, Prime Minister Sheikh Hasina addressed concerns regarding the nation's economic situation, stating that the recent dollar crisis has considerably alleviated, and Bangladesh's exports remain relatively stable amidst the global challenges. The Prime Minister's remarks came in response to a supplementary question posed by lawmaker Mujibul Huq Chunnu during the parliament's question hour. Sheikh Hasina acknowledged that Bangladesh had encountered a severe dollar crisis exacerbated by the COVID-19 pandemic and the conflict in Ukraine, leading to significant challenges for the nation. However, she assured that the situation has improved notably, allowing for a more relaxed approach to public spending. The Prime Minister highlighted the government's proactive measures to address the crisis, particularly in monitoring the opening of Letters of Credit (LC). Previously, importers had faced issues with inflated prices during the importation process. To mitigate this, banks now rigorously scrutinise product prices using the Bloomberg index before approving LCs, ensuring fairer trade practices. Despite global economic upheavals, Sheikh Hasina emphasised that Bangladesh's exports have not been severely impacted. While some decline has been observed, primarily due to reduced consumption in importing countries grappling with inflation, the overall impact remained moderate, she claimed. In response to the challenges, the government has initiated various strategies to explore new export markets and diversify the export portfolio. Sheikh Hasina reiterated the administration’s commitment to fostering sustainable economic growth by tapping into emerging opportunities and adapting to evolving global trade dynamics. The Prime Minister's reassurance in parliament reflects the government's proactive stance in addressing economic challenges and its determination to steer Bangladesh's economy towards resilience and growth in the face of adversity.
Source: Fibre2fashion
Kenya's apparel and textile manufacturers have voiced concerns that the government's intention to import duty-free fabrics could devastate its domestic manufacturing and cotton farming industries. The concerns have been raised by textile manufacturers in 24 of Kenya’s cotton-growing counties, according to local news reports with governors in Homa Bay and Busia also arguing that importing duty-free fabric will negatively impact farmers who are facing challenges including factory closures. Governor Glady Wanga argued the country’s vertical textile factory Rivatex, is crucial for supporting farmers and it ensures the availability of raw materials. Kenya’s Standard Media publication quoted Wanga as stating “importing duty-free fabric would erase all the progress we’ve made,” and added that “it contradicts the bottom-up economic agenda’s focus on creating jobs and empowering farmers”. She continued: “There’s a vast market for cotton. Our challenge is to meet the textile industry’s needs, create jobs, and alleviate poverty in our counties,”Ramatex’s managing director Thomas Kipkurgat is said to have supported this argument by noting the modernisation of the factory facility was almost complete and new machinery would increase capacity and product quality. But, he was keen to urge stakeholders and farmers to reject fabric imports and join the value chain by taking advantage of the factory’s high cotton demand.
Source: Just Styles
