New Delhi: The government will soon undertake a comprehensive assessment of customs duties on key inputs for manufacturing of finished products such as garments, jewellery, metal items and leather goods to enhance cost competitiveness in both domestic and overseas markets, three officials said on Wednesday. The government on January 31 slashed customs duties on various components from 15% to 10%. (FILE) As a matter of principle, tax proposals were not considered in the interim budget on February 1, but a comprehensive review of customs duties in the light of various free trade agreements (FTAs) is due and is expected after May, the officials said, requesting anonymity. “If some specific changes are required urgently to safeguard any particular sector, a decision could be taken even earlier after thorough scrutiny and stakeholders’ consultations,” one of them said. In order to encourage domestic manufacturing, the government did rationalise import duties on various mobile phone components a day before the interim budget, he added. The government on January 31 slashed customs duties on various components from 15% to 10% that included battery covers, front and back phone covers, main lens, sealing gaskets, SIM sockets, screws and other mechanical items of plastic and metal for cost competitiveness of finished products and greater ease of compliance. The issue of duty inversion in the light of FTAs signed way back in 2010 was raised by various stakeholders. The issue has also been flagged by a parliamentary panel earlier this month, a second official said. “The committee is of the view that failure to address this issue could lead to severe negative consequences for the manufacturing industry,” he said. The panel observed that exporters faced unequal competition in many markets due to duty inversion faced by them in many products where raw material imports attracted higher duties compared to finished goods, he said. For example, in the engineering goods sector, about 80% of total copper tubes and pipes were imported at zero duty under the India Asean FTA, but their raw materials – such as copper cathode and copper scraps -- attracted higher import duties (5-2.5%). A similar situation is seen in the chemical sector, he added. Domestic leather manufacturers are also facing high duties (between 5% and 30%) on imports of key components, including toe caps, heels, soles and wet blue crust chrome, tanned and value-added leather. Global brands such as Geox, Clarks, H&M, Ecco, Hush Puppies, etc are keen to shift their manufacturing base from China to India, but they insist that manufacturers must use specific components only available abroad, a third official said. A similar situation is faced by the Indian textiles and jewellery sectors, he added. “Customs duties are not meant for revenue generation. These are calibrated to encourage domestic manufacturing, check dumping of foreign goods, and control prices of essential commodities,” the official said. Indian products are uncompetitive as compared to those from China, Bangladesh, Sri Lanka and Vietnam because of these reasons, he added. According to the latest government data, the three sectors have seen a double-digit contraction in exports. Leather exports fell year-on-year by about 12% to $3.25 billion in April-December 2023, gem and jewellery by over 16% to $24.30 billion, and garments by 15% to $10.14 billion. India’s overall merchandise exports during the said period fell 5.7% to $317.12 billion, the data showed.
Source: Hindustan Times
Ahmedabad: The central govt announced the extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for export of apparel/garments and made-ups till March 31, 2026. The scheme provides benefits of up to 6% to exporters of garments, made-ups and bedsheets. It was to end on March 31, 2024, and there was uncertainty because exporters were thus unable to take orders after March 31. Bharat Chhajer, former chairman of Powerloom Development and Export Promotion Council (PDEXCIL), said, “This was a much-needed decision for the garments and made-ups sectors. The scheme was available till March 31, 2024, so there was no clarity for exporters to accept new orders with cost calculation based on the scheme after March 31, 2024. All export promotion councils of the textile industry demanded that the RoSCTL benefits continue, and the central government accepted this. This scheme offers benefits of up to 6% for exports by rebates. Gujarat is a textile hub, and this decision will help the textile industry.” “Continuing the scheme for two years will provide a stable policy regime which is essential for long-term trade planning, more so in the textiles sector where orders can be placed for long-term delivery. RoSCTL will ensure stability in the policy regime, lower the tax burden and provide a level playing field on the principle that “goods are exported and not domestic taxes”. The scheme’s objective is to compensate for state and central taxes and levies by rebates, in addition to the duty drawback scheme on export of apparel-garments and made-ups. It is based on the principle that taxes and duties should not be exported, to enable a level playing field for exports,” the Centre said in a statement. Rahul Shah, co-chairman of the GCCI textile committee, said, “The textile sector is passing through a tough phase. India’s textile and apparel exports for April to November 2023 were $21.8 billion, which was 6.56% lower than for April-November 2022 and 16% lower than April-November 2021. In this scenario, this extension will help exporters of garments and made-ups.”
Source: Times of India
Finance Minister Nirmala Sitharaman is scheduled to review the state of the economy amid global challenges at a meeting of the Financial Stability and Development Council (FSDC) on February 21. The 28th meeting of the high-level panel to be held here will be attended by all financial sector regulators, including RBI Governor Shaktikanta Das, sources said. This would be the first meeting of the FSDC after the passage of the ₹47.6 lakh crore Budget for 2024-25, focussing on capital expenditure with an outlay of ₹11.11 lakh crore. In the meeting, the Finance Minister will review the current global and domestic economic situation and financial stability issues. Ms. Sitharaman is likely to stress key priorities highlighted in the interim Budget, the way forward for various future policies and measures that the government has proposed to take in many sectors, sources said. Besides, the council may also review the progress of measures approved earlier for further development of the financial sector, and to achieve inclusive economic growth with macroeconomic stability. The FSDC meeting will also review activities undertaken by the FSDC sub-committee chaired by the RBI governor and the action taken by members on the past decisions of FSDC. Besides RBI governor, Securities and Exchange Board of India chairperson Madhabi Puri Buch, Insurance Regulatory and Development Authority of India (IRDAI) chairman Debasish Panda, Insolvency and Bankruptcy Board of India (IBBI) chairman Ravi Mital and Pension Fund Regulatory and Development Authority's newly appointed chairman Deepak Mohanty will attend the meeting. According to sources, the FSDC meeting will also be attended by Minister of State for Finance Bhagwat Kishanrao Karad, Finance Secretary T.V. Somanathan, Economic Affairs Secretary Ajay Seth, Revenue Secretary Sanjay Malhotra, Financial Services Secretary Vivek Joshi and other top officials of the finance ministry.
Source: The Hindu
New Delhi: Prime Minister Narendra Modi virtually laid the foundation stone of Bharat Mart to be constructed by DP World in Jebel Ali Free Trade Zone in Dubai, UAE. He was accompanied by Sheikh Mohamed bin Rashid Al Maktoum, Vice President, Prime Minister, and the Ruler of Dubai. Bharat Mart is expected to play a major role in the promotion of micro, small and medium sectors of India, said PM Modi. Bharat Mart is a warehousing facility, in the UAE. Initially expected to turn operational by 2025. Bharat Mart is expected to provide a one-stop solution for Indian exporters, similar to a concept that has been pioneered by China.The 1 lakh square metre facility with be multi-use, offering a space for the following functions Warehouse Retail Hospitality The Chinese started the concept of 'Dragon Mart' to promote their exports. Bharat Mart is expected to accommodate everything between heavy machinery and perishable goods. Bharat Mart will be facilitated by a digital platform for global buyers to enable the fast purchase of goods from the warehousing facility. How will Bharat Mart benefit Indian traders? Bharat Mart will provide Indian exporters a base in the UAE to trade with other countries such as Africa, Europe and the US. The Bharat Mart facility is expected to cut costs and also slash the time spent on transportation. UAE is known to be a major logistics hub in Asia where ships port to refuel. Bharat Mart will also benefit exporters eyeing entry into the Central Asian region. Where will Bharat Mart be situated? Bharat Mart will be situated in the UAE's Jebel Ali Free Zone (JAFZA). The zone is managed by DP World. Bharat Mata project is part of the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE to grow non-petroleum trade to $100 billion by 2030. PM Modi's UAE visit Prime Minister Narendra Modi is in the UAE to attend the World Governments Summit in Abu Dhabi. PM Modi signed 10 memorandums of understanding with the UAE government during his ongoing visit. PM Modi addressed the Ahlan Modi event in Abu Dhabi on Tuesday.
Source: Daily Hunt
India and the United Arab Emirates (UAE) yesterday signed a bilateral investment treaty along with other agreements on a variety of fields, including energy, fintech and digital infrastructure projects, during Prime Minister Narendra Modi's two-day visit to the latter. The bilateral investment treaty will be a key enabler for further promoting investments in both countries, the Indian ministry of external affairs said in a release. India already has a Comprehensive Economic Partnership Agreement with the UAE. An inter-governmental framework agreement on cooperation for the empowerment and operation of the India-Middle East-Europe Economic Corridor was signed. Two other agreements—one on interlinking of the instant payment platforms UPI (India) and AANI (UAE), and the other on interlinking domestic debit and credit cards RuPay (India) with JAYWAN (UAE)—were signed as well. Ahead of the visit, India’s RITES Limited and Gujarat Maritime Board signed separate agreements with Abu Dhabi Ports Company to help build port infrastructure and further enhance connectivity between the two countries.
Source: Fibre2fashion
India, Bangladesh, Egypt, Indonesia and South Africa have raised concerns at a latest World Trade Organization (WTO) draft on dispute settlement reform which proposes inclusion of mediators during consultations and the composition and powers of dispute settlement panels. In a submission made Monday, they said that novel ideas like narrowing the possibility of appeal to "exceptional circumstances" may lead to confusion and adversely impact the ability of developing countries to access the dispute resolution system. The draft has proposed that the panel be given powers to categorise cases into standard, complex and extraordinarily complex cases, which many countries have opposed. On the introduction of an element of mandatory alternate dispute resolution flexibility that is a core characteristic of such processes, therefore disincentivizing developing countries including least developing countries from taking recourse to the impact of the introduction of such a multiplicity of provisions has to be examined in greater depth, they said. The submission comes ahead of a key ministerial conference of WTO later this month where India, along with 100 countries, wants restoration of a fully functional and transparent appellate body which ensures a fair appeals process. New Delhi has also emphasised on retaining the member-driven, consensus-based decision-making principles of the WTO. The dispute settlement mechanism of WTO is defunct due to a non-functional appellate body since December 2019 as the US has been blocking the appointment of judges. The five nations highlighted that there have been some informal discussions on the appellate review mechanism, which touch on issues of leave to appeal and standard of review. "This discussion is being conducted in isolation from the issue of the restoration of the appellate body and the permanence of the underlying appellate structure," they as per the submission, the proposed addition of a "conciliator or mediator assistance during consultations" complicates the litigative streams. "The proposed inclusion of political consultation in ADR during the compliance stage will make the process more complex and unpredictable for the countries with smaller economies," they said.
Source: Economic Times
Lucknow Traders say that under this Act, it has been made mandatory by the Central Government to make payment of goods purchased from MSME registered entrepreneurs within 45 days. Due to this there is anger among textile traders across the country. Textile traders, upset with the implementation of 43BH Act, met Finance Minister Suresh Khanna on Wednesday. Traders say that under this Act, it has been made mandatory by the Central Government to make payment of goods purchased from MSME registered entrepreneurs within 45 days. Due to this there is anger among textile traders across the country. The traders submitted a memorandum to the Finance Minister saying that the clothing business runs on credit. In this, the goods purchased from big companies and traders are paid only after 90 to 180 days in the retail sector. This oral agreement is made between the company traders and the retailer. Due to the continuous decline in the textile market since Corona, more than 50 percent of the textile industry has been affected. Due to this, more than 30 percent of the commercial establishments are on the verge of closure. The obligation of this Act has been imposed on registered traders under MSME whose business is less than Rs 50 crore. Retailers and traders purchasing goods from them will also be considered under the purview of the new law. Traders have demanded relief in this regard.
Source: Amarujala
Synopsis H&M aims to have all polyester in its collections made from recycled materials. However, most recycled polyester comes from plastic bottles, not old clothes. Recycling textiles is complex and costly, especially for clothes made from multiple fibres. Fashion brands often use recycled plastic, angering the food industry. PARIS: In H&M's flagship Paris store it is hard to find clothes that do not claim to be made from "recycled materials". Last year, 79 percent of the polyester in its collections came from recycled materials, and next year it wants it all to be recycled. The Swedish fast fashion giant told AFP that recycled material allows the "industry to reduce its dependence on virgin polyester made from fossil fuels". The problem is that "93 percent of all recycled textiles today comes from plastic bottles, not from old clothes", said Urska Trunk of campaign group Changing Markets. In other words, from fossil fuels. And while a plastic bottle can be recycled five or six times, a T-shirt in recycled polyester "can never be recycled again", said Trunk. Almost all recycled polyester is made from PET (polyethylene terephthalate) from plastic bottles, according to the non-profit Textile Exchange. In Europe, most textile waste is either dumped or burned. Only 22 percent is recycled or reused -- and most of that is turned into insulation, mattress stuffing or cleaning cloths. "Less than one percent of fabric used to produce clothing is recycled into new clothing," the European Commission told AFP. Recycling textiles is "much more complex than recycling other materials, such as glass or paper", according to Lenzing, an Austrian manufacturer famous for its wood-based fibres. - Unrecyclable - For a start, clothes made from more than two fibres are for now regarded as unrecyclable. Those clothes that can be recycled must be sorted by colour, and then have zips, buttons, studs and other material removed. It is often costly and labour intensive, say experts, though pilot projects are beginning to appear in Europe, said Greenpeace's Lisa Panhuber. However, the technology is "in its infancy", according to Trunk. Reusing cotton may seem like the obvious answer. But when cotton is recycled, the quality drops so much that it often has to be woven with other materials, experts say, bringing us slap back to the problem of mixed fabrics. To square the recycling circle, fashion brands have instead been using recycled plastic -- to the anger and frustration of the food industry, which pays for the collection of the used PET bottles. "Let's be clear: this is not circularity," the beverage industry wrote in a withering open letter to the European Parliament last year, denouncing the "worrying trend" of the fashion industry making "green claims related to the use of recycled material". Recycling polyester is another dead end, according to Lauriane Veillard, of the Zero Waste Europe (ZWE) network. It is often impure and mixed with other materials like elastane or Lycra, which "prevents any recycling", she insisted. Jean-Baptiste Sultan, of the French NGO Carbone 4, is equally damning of polyester. "From its manufacture to its recycling, (polyester) pollutes water, air and the soil." In fact, environmental groups have been demanding that the textile industry stops making polyester entirely -- despite it accounting for more than half of their output, according to Textile Exchange. - Carbon footprintSo where do all those mountains of unrecyclable polyester and mixed fabrics end up after Western consumers dutifully bring them to recycling bins? Nearly half of textile waste collected in Europe ends up in African secondhand markets -- most controversially in Ghana -- or more often it is tipped into "open landfills", according to European Environment Agency (EEA) figures from 2019. Another 41 percent of the bloc's textile waste goes to Asia, it added, mostly "to dedicated economic zones where they are sorted and processed". "The used textiles are mostly downcycled into industrial rags or filling, or reexported for recycling in other Asian countries or for reuse in Africa," the agency said. A new EU rule adopted in November aims to ensure waste exports are recycled But the EEA admitted that there was "a lack of consistent data on the quantities and fate of used textiles and textile waste in Europe". Indeed, NGOs told AFP much of Europe's waste clothes sent to Asia go to "Export Processing Zones", which Paul Roeland of the Clean Clothes Campaign said were "notorious for providing 'lawless' exclaves, where even the low labour standards of Pakistan and India are not observed". Exporting "clothes to countries with low labour costs for sorting is also a horror in terms of carbon footprint", said Marc Minassian of Pellenc ST, which makes optical sorting machines used in recycling. - Recycling 'myth' - The terrible truth is that "recycling is a myth for clothing", Greenpeace's consumer expert Panhuber insisted. Others, however, are turning towards new vegetable fibres, with German brand Hugo Boss using Pinatex made from pineapple leaves for some of its sneakers. But some experts warn that we could be falling into another trap. Thomas Ebele of the SloWeAre label questioned the way these non-woven fibres are held together "in the majority of cases" with thermoplastic polyester or PLA. It means that while the clothing can be "sometimes broken down" it is not recyclable, he said. "Biodegradable does not mean compostable," he warned, saying that some of these fibres have to be broken down industrially. But beyond all that, "the biggest problem is the amount of clothes being made", said Celeste Grillet of Carbone 4. For Panhuber and Greenpeace, the solution is simple: buy fewer clothes. "We have to decrease consumption," she said -- repair, "reuse and upcycle".
Source: Economic Times
Mamta Jain had always wanted to start a venture which involved waste fabric and income generation for underprivileged women. With this intent, the Chennai-based former IT professional set out on a one woman collection drive of tailoring cloth waste in 2019. “It was then that I realised that there is no system to process or recycle tailoring waste in Chennai Some dump it on the roadside, others give it away to informal waste pickers.” As an experiment, Mamta set out on an informal study, weighing the fabric waste generated in 35 tailoring units in the city. “Over a year and a half, I found that one unit produced 3kg of waste a day, on average. And there are roughly 45,000 tailoring units in Chennai. You can do the math.” Mamta doesn’t claim this to be a scientific or methodical survey but puts forward the immediate need for policy in place for collecting and handling textile waste. “There is no mention of textile waste in the corporation’s dry waste policy.” The problem begins from a general perception that ‘cloth’ is biodegradable, but the situation is vastly different from what it was 20 years ago. Synthetic, nonbiodegradable fabric has flooded the market and people are buying 60% more clothing. Dominique Lopez of Oh Scrap! Madras, one of the few groups in Chennai which upcycles tailoring waste, says that at least 50% of the tailoring waste they get is non-biodegradable, synthetic material. And although they upcycle one tonne of fabric waste a year, it amounts to just a fraction of the total quantum Nobody has data on the amount of textile waste generated in Tamil Nadu but one just needs to visit dump yards to see mountains of waste fabric, says Madhuvanti Rajkumar of Citizen Consumer and Civic Action Group (CAG). “Polyester is nothing but plastic, and is non-biodegradable. So are nylon, acrylic and any other fabric which are blends of these.” And just like plastic, a piece of polyester can take 20 to 200 years to decompose. Mamta has since worked on collecting and converting tailoring waste to usable items but the scale of it is too small, she says. In textile towns such as Tirupur, factories have tied up with companies that re cycle textile waste and convert it into yarn. “About 80% of the fabric used here is cotton but the synthetic market is growing,” says Subramanian K M, president of Tirupur Exporters Association. “But nearly 90% of the waste fabric is recycled using machinery.” However, there are 2,000 factories in Tirupur alone and the recycling companies will consider setting up such mechanisms elsewhere in the state only if there are such organised clusters, says Subramanian. The first step should thus be to map the number of tailoring units in every city including Chennai, says Madhuvanti. “Urban local bodies can set up separate collection points for textile waste. They need to fix one or two days a month and collect the waste from the consumers.” Right now, there are collection points for sanitary waste, hazardous waste and e-waste in every ward, she says. “Regardless of their efficiency, it’s there on paper. But there is no mention of textile waste.” While there is an EPR (extended producer responsibility) framework for plastic and other hazardous waste, wherein the manufacturers need to meet a recy cling target, none such exists for textiles. The concept of blended fabrics adds to the problem, she says, as it becomes difficult for informal waste pickers to recognise recyclable fabrics. “Natural and synthetic fabrics are blended for utility; but the result is multi-layered plastic, like a tetra pack. We don’t have the technology to separate natural fibres from the plastic and they end up in landfills as well, along with synthetic waste.” The only solution, she says, is to phase out unnecessary synthetic fibres slowly, just like we do with plastic. On the part of the customers, the way forward is to change consumption patterns, says Dominique. “Yes, our tastes change but let’s be more mindful while buying. Understand the value of what we already have. Make tailors aware that fabric scrap could be of value to them.” Going for long-lasting, natural fabric is definitely the best option, but manufacturers should also give enough details about the materials used in a fabric so consumers can make informed choices, says Madhuvanti. “Proper labelling of the materials used for fabric is also crucial. More importantly, get people to recognise the problem at a local level. People will obviously buy more when something is cheaper.”
Source: Times of India
The latest ITMF Global Textile Industry Survey (GTIS) was conducted in January 2024, and It revealed a significant improvement in the business climate, signalling a potential turning point driven by better inflation rates, increased real wages, and consumer sentiment in the USA, alongside expectations of interest rate cuts. Business expectations for July 2024 reached a peak, unmet since late 2021, fuelled by improved order intakes and a more optimistic consumer demand outlook, despite ongoing cost concerns. Order intake began showing recovery signs, with notable increases across regions except East Asia, particularly in North & Central America and South America.The average order backlog has stabilised around 2 months since July 2023, with no change in January 2024, while capacity utilisation remained at the lowest level recorded (67%), reflecting a cautious production outlook. Concerns over weakening demand in the global textile value chain have decreased, with a drop in respondents citing it as a main concern to 67% in January 2024, the lowest since May 2023. Despite this weakening demand, the phase has led to reduced rather than cancelled orders, a departure from early pandemic responses. Inventories in the textile value chain are deemed average by 57% of participants, with South Americans reporting higher levels and garment producers noting the lowest inventories, indicating a nuanced view of the current market conditions.
Source: Knitting Industry
The president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Faruque Hassan, recently engaged in discussions regarding investment opportunities in Bangladesh’s high value-added and non-cotton textiles sector during a meeting with JG Lim, vice president at Hyosung Corporation. The meeting held in Dhaka, welcomed LG Lim, who was accompanied by Noh Chy Chy Woo, country head, and Md. Akter Hossain, business development manager of Hyosung Corporation. The aim was to explore investment potential in Bangladesh and avenues for mutual trade benefits.This visit reciprocated a prior delegation trip led by the BGMEA president to Hyosung Corporation in October of the previous year. Discussions revolved around potential technical collaborations between Hyosung Corporation and Bangladeshi firms, with a focus on enhancing garment manufacturing capacity using nylon, polyester yarns, and spandex fabrics. Faruque Hassan emphasised the industry’s interest in diversifying into non-cotton products, particularly high-value fashion items based on manmade fibres and technical textiles. Hyosung Corporation, renowned for its high-quality fibre products such as creora, spandex yarn, aerocool and askin, polyester, and nylon yarn, presents a significant potential partner for Bangladesh’s textile industry. The discussions underscored mutual interest in exploring investment avenues and fostering collaboration to capitalise on Bangladesh textile sector’s growth potential.
Source: Fibre2fashion
Ethiopia has signed a $28m project agreement with the United Nations Industrial Development Organization (UNIDO) to promote a circular economy whilst driving innovation and efficiency in the textile and garment sector over the next five years. The agreement signed on 1 February 2024 and spearheaded by the Ethiopian Textile Industries Development Institute zeroes in on promoting circular economy principles through the adoption of resource-efficient technologies. The project allocated $3m from UNIDO’s share and is financed through collaboration with the Global Environmental Facility (GEF). The endeavour is expected to spotlight waste management practices within the industry, by prioritising recycling and minimising losses in the production process. Additionally, it seeks to bolster regulatory frameworks and institutional capacities.
Source: Just Style
In June this year, the Sri Lanka Export Development Board (EDB), in association with the Sri Lanka High Commission in the UK, the Sri Lanka Apparel Sourcing Association (SLASA), and the Joint Apparel Association Forum (JAAF), is organising the ‘Sourced Sri Lanka – Textile & Apparel Roadshow’ in London. The event is expected to help further the strategic growth plans while also addressing many of the challenges facing the industry. The event, featuring around 50 exhibitors and expected to attract a diverse audience of a thousand foreign buyers and Sri Lankan trade visitors, holds a lot of significance considering the fact Sri Lanka has not had a standalone show in any country for over two decades to promote exports. There are plans to further expand the roadshow to Japan, Germany, Australia and the US in the coming years. The country has an ambitious goal to increase apparel exports to UK by $ 1 billion by 2026, leveraging the benefits of the UK Developing Countries Trading Scheme (DCTS). The upcoming event, seen as a strategic necessity for the industry’s future growth and success, is also expected to address many of the challenges the Sri Lankan apparel sector is facing, including declining demand in high-end markets like the United Kingdom, US and other European nations over the past couple of years. The event is viewed as a strategic move to find new markets and build relationships with new buyers.
Source: Fibre2fashion
