New Delhi (India): Mark your calendars! The highly anticipated Bharat Tex 2024, inspired by the 5F Vision of our Prime Minister Shri Narendra Modi, is set to kick off on February 26th, weaving a tapestry of innovation, collaboration, and growth for the global textile industry. This four-day event, to be held at Bharat Mandapam and Yashobhoomi in NewDelhi, brings together over 3,500+ exhibitors and 40,000+ trade visitors from 50+ countries. Get ready to immerse yourself in: · The Entire Textile Value Chain: Explore fibers, yarns, fabrics, garments, made-ups, technical textiles, handlooms, carpets, intelligent manufacturing, and more – witness the future of the industry unfold. · Knowledge Sessions and Conferences: Engage with industry leaders, experts, and innovators through Talks, Seminars, CEO Roundtables, Workshops, and Panel Discussions. Gain insights into sustainability initiatives, future manufacturing trends, and the competitiveness of the textile value chain. · B2B and G2G Meetings: Forge new partnerships, explore lucrative opportunities, and connect with key players from across the globe. Discuss the future of manufacturing with representatives from CITI, ITMF, and CMAI, and explore global sourcing prospects with industry experts. · Strategic Investment Announcements and Product Launches: Be the first to witness cuttingedge technology and advancements unveiled by leading companies. Discover the factory of the future and learn about the latest innovations driving growth and competitiveness in the textile industry. · A Platform for Global Collaborations: Bharat Tex 2024 serves as a launchpad for international ventures, fostering collaborations that will reshape the textile landscape. Celebrate India's rich textile heritage and witness traditional craftsmanship alongside cutting-edge technology. More than just an exhibition, Bharat Tex 2024 is a celebration of India's rich textile legacy and its vision for a sustainable, innovative future.
Source: Deccan Herald
India’s negotiating team for the proposed India-UK Free Trade Agreement (FTA), led by Commerce Secretary Sunil Barthwal, will be in London this week to try and narrow differences on key issues in an attempt to seal the deal before the country’s general elections, sources have said. “Senior officials from the Commerce Ministry, including the Commerce Secretary, have left for London to take forward talks on the handful of issues where consensus has been elusive,” a source told businessline. Of the 26 chapters in the proposed negotiations, most of the chapters have been fully, or majorly, tied up, with just a few issues proving to be tricky. Although India may have agreed to steep import duty cuts for items such as Scotch and automobiles, there are indications that the UK wants more market access. It also wants more access in legal services and financial services. New Delhi, too, is insisting on tangible “commercial gains” from the pact. Its demand for a more liberal non-immigrant visa regime for workers and a social security pact have not been satisfactorily met yet, sources said. Earlier this month, a UK trade delegation led by Douglas McNeill, chief economic advisor to UK PM Rishi Sunak, was in New Delhi, meeting top decision makers, including Finance Minister Nirmala Sitharaman, Commerce & Industry Minister Piyush Goyal and senior officials in the Prime Minister’s Office, looking for possible breakthrough. The PMO held a meeting last week to review the progress in talks and discuss the way ahead. India and the UK launched the talks for a free-trade agreement (FTA) in January 2022. The 14th round of talks began last month and are continuing. The two countries are optimistic about bilateral trade doubling to $100 billion by 2030 if the FTA is implemented soon.
Source: The Hindu
Bangladesh and India are edging closer to harmonising product standards to eliminate significant non-tariff barriers between the two countries. This is as per media reports, which citing sources, underlined India has submitted a concept note, which Bangladesh is currently reviewing, expressing concerns about the escalating coverage of technical barriers to trade and sanitary and phytosanitary measures. The note warns that if this trend persists, exporters from both countries may encounter greater challenges in addressing these barriers. In response, both countries are intensifying efforts towards continuous cooperation to harmonise technical and sanitary measures, aiming to enhance bilateral trade and economic ties. A senior official at the Bangladesh commerce ministry reportedly claimed mutual alignment of standards across various product sectors is underway, considering them as major nontariff barriers hampering trade potential between the two nations. The official emphasised that harmonisation of standards is pivotal for further augmenting trade between Bangladesh and India. Currently, differences in standard marks or certifications issued by the Bangladesh Standards and Testing Institution (BSTI) and the Bureau of Indian Standards (BIS) pose complexities, acting as non-tariff barriers during product imports and exports. Despite the bilateral trade volume exceeding $16 billion, harmonisation of sanitary and phytosanitary measures is also deemed necessary to alleviate the impact of existing nontariff barriers. Mutual recognition of standards by accredited certification bodies like BSTI and BIS is advocated. To address trade complexities comprehensively and maximise benefits, experts recommend signing the proposed Comprehensive Economic Partnership Agreement (CEPA) between Bangladesh and India even if over the years, both nations have undertaken various initiatives to bolster economic and trade ties, including transit treaties, duty-free access for Bangladeshi products to the Indian market, and agreements under the South Asia Free Trade Area (SAFTA). The document further suggests identifying a priority list of mutually beneficial products facing non-tariff barriers and examining barriers and restrictions identified by exporters for these commodities.
Source: Fibre2fashion
Synopsis Arvind Panagariya, chairman of the Sixteenth Finance Commission, emphasized the need for India to focus on exports to achieve a 10% growth rate. He highlighted the importance of following China's strategy. Panagariya also stressed the need for states to prioritize labor-intensive industries and create special zones. India must focus on exports to achieve a 10% growth rate for the economy, said Arvind Panagariya, chairman of the Sixteenth Finance Commission. “I’ve looked at successful countries such as Hong Kong, Singapore, Taiwan, South Korea, China, and India – these are the six high-growth examples. My conclusion is very clear – countries that have been open are the ones that have grown rapidly,” Panagariya said.
Source: Economic Times
The government has fully exempted customs duty on import of extra long staple cotton and has cut duties on specified varieties of imported blueberries, cranberries and frozen turkeys. In a notification, the Finance Ministry has slashed import duty on certain items of blueberries and cranberries from 30 per cent to 10 per cent in some cases and 5 per cent in other cases. Click here to follow our WhatsApp channel Similarly, import duty pertaining to meat and edible offal of turkeys, were also reduced from 30 per cent to 5 per cent effective Tuesday. According to officials, the duty rate changes on frozen turkey, specified cranberries and blueberries and their processed products is to implement the recommendation of the Department of Commerce following a mutually agreed solution between India and the US. Nangia Andersen India Associate Director- Indirect Tax, Khushbu Trivedi, said, in pursuance of the bilateral agreement that took place in the recent G20 Leaders' Summit between India and USA intended at addressing the past disputes, the central government has reduced import duty on these items. "Reduction of the duty on these niche items rarely produced in India would help the USA in penetrating the Indian market, and also in bringing the prices of these products down in India. This move shall also benefit other nations forming part of WTO," Trivedi said. Further, in response to the concerns raised by the cotton industry, the Ministry has reduced the import duty to 'Nil' on 'Cotton, not carded or combed, with staple length exceeding 32mm.' "This decision reflects a proactive approach by the government to address industry feedback and adapt import regulations accordingly, potentially benefiting stakeholders involved in the cotton sector," Trivedi added.
Source: Business Standard
Tamil Nadu that accounts 1/3rd of the textile business size, 45% of the spinning capacity, 10% of the handloom capacity, etc., has been losing its competitive advantage due to attractive textile policies of different States like Gujarat, Maharashtra, Madhya Pradesh, etc., in the country. The Association has submitted the pre-budget memoranda suggesting various policy initiatives to sustain the competitiveness of the Tamil Nadu textile industry and remain as No.1 State in the textiles and clothing manufacturing sector in the country. In a press release, Dr. S. K. Sundararaman, Chairman, The Southern India Mills’ Association (SIMA), has highly appreciated and thanked the Hon’ble Chief Minister of Tamil Nadu, Thiru. M. K. Stalin, Hon’ble Minister of Finance, Thiru. Thangam Thennarasu, and Hon’ble Minister of Handlooms and Textiles, Thiru. R. Gandhi, for considering the various suggestions given by SIMA and making announcements in the State Budget. He has mentioned that announcement of 6% interest subsidy for modernization of spinning segment with a budget outlay of Rs. 500 crores is an attractive announcement when the spinning segment is passing through an unprecedented crisis. He has said that though the State accounts 45% of the spinning capacity of the country, around 2/3rd of the capacity is more than 15 years old. He has said that earlier Government had extended 2% interest subsidy for spinning modernization and that has been now increased to 6%. He said that this would greatly bring down the capital cost and encourage the spinning segment to modernize the old machines. He also lauded the announcement saying that Tamil Nadu is the first State to announce 6% interest subsidy for modernization in the country. SIMA Chairman has also welcomed the increase in the special capacity subsidy from 15% to 25% for the technical textiles, MMF yarn produced from recycled products, MMF fabric and apparel manufacturing in Tamil Nadu. Dr. Sundararman has said that technical textiles and MMF manufacturing and recycled products manufacturing are the future growth engines and highly demanded by the global brands and therefore, this announcement is a very big encouragement, not only for the investors in Tamil Nadu, but also has hoped that it would attract investments from different States and also abroad. Allocation of Rs. 1683 crores for Virudhunagar PM MITRA Park, which is expected to generate employment for two lakh people, estimated investment of Rs. 800 crores from Salem Textile Park is expected to generate jobs for 8000 people, allotment of Rs. 25 crores to set up “Research and Business Development Fund for Technical Textiles and Manmade Fibre”, allotment of Rs. 25 crores for apparel clusters in Virudhunagar, Pudukottai, Kanyakumari, Silk cluster in Salem, Yarn cluster in Namakkal, allotment of Rs. 20 crores for 10 mini textile parks in the districts of Karur, Erode and Virudhunagar will greatly enhance the competitiveness, attract investment and create rural jobs especially for women in the aforesaid districts. A budget outlay of Rs. 227 crores to establish integrated complex comprising exhibition halls, design and incubation centres and commercial buildings at Chennai in an area of four lakh sq. ft., will greatly help the handloom and handicrafts sectors, says SIMA Chairman. He has added that 10% payroll subsidy extended for new units employing 500 or more women physically challenged and transgenders people of Tamil Nadu domicile would give enormous job opportunities for the people of Tamil Nadu. A vision of generating additional 100 billion units of renewable energy by 2030 is yet another fillip to the State budget and right direction to mitigate the carbon footprint and meet the global sustainability goal. The announcement of conducting a global start up summit during January 2025 would attract the eyes of the global investors and also throw opportunities for boosting exports. SIMA Chairman has hailed the announcement of international skill development centres in Coimbatore, Madurai, free Wi-fi at 1000 locations in Coimbatore, Trichy, Madurai and Salem, development of IT park in 24.00 lakh sq. ft., area at Vilankurichi, Coimbatore, and four storey plug and play manufacturing facility with a budget outlay of Rs. 37 crores to create 1500 jobs in Coimbatore city are few more welcoming features in the State Budget.
Source: Indian Textile Magazine
As far as capital account is concerned, India's strong macroeconomic fundamentals, high growth and stable business environment have boosted Foreign Portfolio Inflows (FPIs). PTI Last Updated 20 February 2024, 19:53 IST Follow Us A file photo of Union Finance Minister Nirmala SitharamanCredit: PTI New Delhi: The outlook for the Indian economy appears "bright" with GDP likely to clock 7 per cent growth rate next fiscal although the nation needs to keep a watch on global headwinds emanating from geopolitical tensions and volatility in international financial markets, a finance ministry report said on Tuesday. During the current financial year, the Indian economy is estimated to grow at 7.3 per cent. This would be the third year in the row when the GDP would grow in excess of 7 per cent. Driven by a better-than-expected performance in Q2 and above 7 per cent growth projection for FY24 (by Ministry of Statistics and Programme Implementation in its first advance estimates), many global agencies have revised India's growth projection in the upward direction, the Monthly Economic Review released by the finance ministry said. This reflects the resilience of the Indian economy to sustain its growth path amidst ongoing geopolitical headwinds, it said, adding, the measures announced in the Interim Union Budget FY25 are expected to play a pivotal role in supporting India's growth journey ahead. Talking about tailwinds for the next financial year, the report said prospects of healthy Rabi harvesting, sustained manufacturing profitability and underlying service resilience are expected to support economic activity in FY25. On the demand side, household consumption is expected to improve, while prospects of fixed investment remain bright owing to an upturn in the private capex cycle, improved business sentiments, healthy balance sheets of banks and corporates, and the government's continued thrust on capital expenditure, it said.
Source: Deccan Herald
Surat : With the announcement of Welspun’s first substantial expansion outside of the state of Gujarat in Odisha, the reverberations of unhappiness inside Gujarat’s textile industry have found their first echo. Welspun is a big participant in the sector in Gujarat, and it has textile production facilities in Vapi and Anjar in Kutch.The decision has been made by Welspun to spend a remarkable 3,050 crore rupees in Choudwar, which is located in the state of Odisha, in an integrated textile production plant and storage complex. This move, which represents a substantial change in Welspun’s investment plan, has been welcomed by the government of Odisha. It is indicative of the possibility that textile titans could relocate from Gujarat to states that provide more favourable economic conditions. Welspun, a renowned textile industry heavyweight, has made the decision to refocus its investment on Odisha, which is a move that highlights the rising unhappiness that is occurring inside Gujarat’s textile sector. In reaction to the inability of the Gujarat government to implement a much-anticipated industry-friendly textile policy, there are a number of large textile businesses in Gujarat, including Welspun, that may be contemplating expanding their operations to other states, particularly Odisha. The Chief Minister of Odisha, Naveen Patnaik, lay the foundation stone for the ambitious project that Welspun is working on. This action demonstrates Odisha’s aggressive approach in luring textile investments. The evolving dynamics of India’s textile business landscape are highlighted by the fact that this is Welspun’s first big push into the textile market outside of Gujarat, according to industry insiders. Welspun’s decision may be linked back to the frequent requests made by industry stakeholders, especially the Southern Gujarat Chamber of Commerce and Industry (SGCCI), pushing the Gujarat government to speed the drafting of a new textile policy. These appeals were the motivation for Welspun’s decision. Concerns have been expressed over the lack of continuity, notably with relation to the incentives for the cotton spinning industry, since the existing policy is scheduled to expire on December 31, 2023. As stated by Ashish Gujarati, a prominent figure in the textile sector and a former president of the Securities and Exchange Commission of India (SGCCI), “We are anticipating a new favourable textile policy that will put an end to the migration and attract investors from neighbouring states such as Maharashtra, Rajasthan, and Madhya Pradesh.” Odisha is a gold mine for trained textile workers, according to sources inside the industry, and the beneficial policy implemented by the government of Odisha is all set to lure other large textile firms from Gujarat. The man-made fabric (MMF) industry in Surat is the biggest in the country, employing over 15 lakh migrant workers. over sixty percent of the labour in the sector comes from the state of Odisha, which accounts for over nine lakh people. The remaining workforce comes from the states of Uttar Pradesh, Bihar, and Jharkhand. The inclusion of the spinning business of man-made fibres as well as a variety of other textile sectors such as weaving, knitting, dyeing processing, and embroidery under the scope of the new textile policy was one of the most important requests that was put forth by representatives of the industry. In addition, the sector emphasised the need of matching Gujarat’s policies with those of neighbouring states like as Maharashtra, Karnataka, Telangana, and Tamil Nadu, places where textile plants are eligible for capital subsidies. “Welspun and maybe other textile giants have been encouraged to look for greener pastures as a result of the lack of a clear roadmap for policy changes and the inability to address concerns raised by the sector. Odisha has been positioned as an attractive location for textile investments as a result of its proactive attitude and favourable industrial climate, according to the managing director of a large textile firm in Surat.
Source: Blunt Times
Synopsis New Delhi is of the view that e-commerce needs to be looked at from a development dimension and not from the “eyes of big tech companies”. The moratorium on customs duties on electronic transmissions is in place since 1998 and gets extended every two years when the WTO ministerial conferences take place. “There is no question of extending the moratorium. We have given a final extension. There will be no more extension…We are in favour of continuation of the work programme,” said the official. India will not support further continuation of prohibition of imposing customs duties on electronic transmissions at the World Trade Organization (WTO), meeting in Abu Dhabi next week, an official said Tuesday, as besides loss of revenue for developing countries, it also constrains their policy space.
Source: Economic Times
VIETNAM, HÀ NỘI — Enjoying a rise in orders, the garment and textile sector is optimistic about the completion of its target of earning US$44 billion in export revenue set for this year. Currently, the majority of businesses in the industry reported that they have received orders for production until May. The Garment 10 Corporation JSC said that along with orders until May, the firm is negotiating for orders for following months to fulfil the target of VNĐ4.5 trillion in revenue and VNĐ130 billion in profit for this year. Meanwhile, General Director of the Vietnam National Textile and Garment Group (Vinatex) Cao Hữu Hiếu said that this year, his firm aims to earn VNĐ17.53 trillion in revenue, up 3% over 2023, with profit rising 10% to VNĐ415 billion. This year, the world economy is projected to see slow growth with a GDP expansion of 2.9%, while total demand for garment and textile products is predicted to reach $714 billion, a slight rise over 2023 but still below that of 2022. Chairman of the Board of Directors of Vinatex Lê Tiến Trường held that the market will continue to experience uncertainty depending on developments in major markets of the US, EU, China and Japan. Chairman of the Vietnam Textile and Apparel Association (VITAS) Vũ Đức Giang asserted that the recent increase in orders showed that the garment and textile sector is recovering and the market is heating up. In order to achieve its export target, from now until 2030, the industry will switch its strategy from fast development to sustainable development and circular business. In the 2031-2035 period, it will focus on effective and sustainable growth following the circular economy model, while completing the domestic value chain and holding a higher position in the global supply chain, he said. Particularly, the sector will concentrate on science-technology and human resources development and drive high-tech weaving-dyeing-finishing projects to industrial parks, while investing in the production of new and environmentally-friendly materials of natural origin, and boosting the fashion sector, said Giang. He also underlined the need to continue to diversify markets, products and customers, and increase the application of automation technology in some production lines and speeding up delivery process to meet the increasing demand of the market and customers.
Source: News Wire
Business leaders and entrepreneurs have urged the government to maintain a manageable tax burden in the upcoming national budget, stressing the need for long-term tax policies to foster sustainable business growth. This call was made during a recent meeting on income tax at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) office. Presided over by Tapan Kumer Majumder, the director-in-charge of the committee, the meeting highlighted the importance of balanced taxation to prevent discouragement of business and trade activities. Entrepreneurs emphasised the necessity of comprehensive tax policies for informed decision-making in business, trade, and investment. Key recommendations included phasing out tax at source and minimum tax sectors, reducing tax disparities, ensuring timely tax refunds, and promoting automation in tax, VAT, and customs administration. Strengthening the Research and Development Department of the National Board of Revenue (NBR) for taxpayer assessment and incentivising tax compliance were also proposed. FBCCI senior vice president Md. Amin Helaly addressed concerns related to VAT, taxes, and customs, highlighting FBCCI’s commitment to resolving these issues. Committee chairman Mohammed Humayun Kabir stressed increasing government revenue while ensuring fairness in tax policies. Director Tapan Kumer Majumder highlighted the importance of stronger ties between the business community and the NBR, with FBCCI ready to collaborate actively. FBCCI vice president Md. Munir Hossain, director Hafez Harun, and other dignitaries were present, even as they emphasised the need for sector-specific recommendations, for cohesive representation before the government.
Source: Fibre2fashion
In a step towards sustainable development, the European Union (EU) and Rwanda have signed a memorandum of understanding (MoU) aimed at enhancing the sustainability and resilience of critical raw material value chains. This historic agreement, inked by commissioner for international partnerships, Jutta Urpilainen, and Rwanda's minister of foreign affairs, Vincent Biruta, marks a pivotal moment in Rwanda's efforts to strengthen its role in sustainable development across Africa. The MoU outlines five key areas of cooperation between the EU and Rwanda, focusing on the integration of sustainable raw materials value chains, ensuring economic diversification, and promoting the sustainable and responsible production of critical and strategic raw materials. Key initiatives include increasing due diligence and traceability, combating illegal trafficking, and aligning with international environmental, social, and governance (ESG) standards, the European Commission said in a press release. Furthermore, the agreement encompasses the mobilisation of funding for necessary infrastructure development, research and innovation, and the sharing of knowledge and technologies related to sustainable raw material management. Capacity building and enhancing training and skills in the critical and strategic raw materials sector are also integral components of the partnership. This collaboration is expected to drive economic diversification and structural transformation in Rwanda, promoting added value and integrating higher standards within the country's economy. The EU's Global Gateway investment plan will play a crucial role in enhancing transparency and traceability and mobilising funds for infrastructure projects. Following the signing of the MoU, the next steps include the development of a roadmap with concrete actions, to be formulated within six months, aimed at implementing the strategic partnership practically. “With this mutually beneficial partnership, we aim to build a resilient and sustainable critical raw materials value chain covering extraction, refining, processing, recycling and substitution. Transparency, traceability and investment are at the core of the EU-Rwanda critical raw materials partnership,” said Thierry Breton, commissioner for internal market. “Global Gateway provides the frame for ambitious and strategic partnerships driving structural transformation and promoting added value like this partnership on raw materials value chains with Rwanda. It is not only about trade and investments: it is about the planet and the people who will benefit from a sustainable, transparent and resilient value chain of critical raw materials,” said Jutta Urpilainen, commissioner for international partnerships. “This agreement further guarantees the quality and traceability of our raw materials, reaffirming Rwanda as a reliable partner in international trade. Rwanda values its partnership with the EU and looks forward to further strengthening our growing cooperation,” said Vincent Biruta, Rwandan minister for foreign affairs.
Source: Fibre2fshion
