The mega textile exhibition — Bharat Tex — will now be held every year in the country as the first event, concluded last week witnessed participation of over 3,500 exhibitors & 3,000 buyers from 111 nations, AEPC said on Sunday. The Apparel Export Promotion Council said that as many as 63 pacts were announced during the expo with international institutions focusing on collaborations in research, innovation, entrepreneurship, new product development, skilling and sustainability. “The Bharat Tex expo will be an annual affair,” AEPC Chairman Sudhir Sekhri said. He said the industry is working on sustainable production practices as it would help enhance the competitiveness of the sector in the global market. He added that the mantra given by PM Narendra Modi to boost textiles exports through 5F - Farm to Fiber, Fiber to Factory, Factory to Fashion, Fashion to Foreign — will energise the textiles export sector.
Source: millennium post
Synopsis Expeditious implementation of PM MITRA parks will attract investments, create employment, and address challenges in the textile industry. The parks aim to reduce logistics costs, attract FDI, and receive financial support. Achieving the target of doubling the textile base requires a stable industrial/textile policy. Expeditious implementation of the ambitious scheme to develop seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks will help in attracting large investments, including FDI, in the sector besides generating huge employment, said industry experts. After inaugurating 'Bharat Tex 2024', one of the largestever global textile events to be organised in the country, Prime Minister Narendra Modi threw light on the government's expansive plans to create seven PM MITRA parks in various states and underlined the emphasis on the creation of opportunities for the entire textile sector. The parks are coming up in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra. Nearly Rs 70,000 crore investment and 20 lakh employment generation is envisaged through these parks. The valuation of the Indian textiles market is estimated at Rs 12 lakh crore The Union Ministry of Textiles is overseeing the execution of these projects. A special purpose vehicle (SPV) owned by the Centre and state governments is being set up for each park, which will oversee the implementation of the project. Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council (AEPC), said the PM MITRA parks seek to address the traditional as well as emerging challenges that the textiles industry has been facing for a long time. These parks will bring together the entire textile value chain under one roof deriving inspiration from the PM's 5F vision -- farm to foreign via fiber, fabric, and fashion focus. PM MITRA parks will create an enabling ecosystem by facilitating the provision of all utilities, reliable power supply, water availability, wastewater disposal system, and an effective single window clearance for all the regulatory approvals for land, building, electricity, CETP, and other common facilities at a single place, Thakur said. "Integration of entire textiles value chain right from spinning, weaving, processing, dyeing, printing and garmenting under these parks will lead to substantial reduction of logistics cost. This park will not only attract investments, including FDI, but also create huge employment opportunities in the sector," he said. The textiles ministry will provide financial support in the form of the development capital support up to Rs 500 crore per park to the SPV. Chairman of Confederation of Indian Textile Industry (CITI) Rakesh Mehra opined that the PM MITRA scheme has been one of the pioneering initiatives for capacity building and attracting new investments. The scheme mandate rightly captures the industry's requirements for cluster-based production with value chain presence and hub and spoke models aimed at each PM MITRA park. This, he said, is a very important aspect not just for meeting production efficiency and logistic efficiency, but also as a sustainable model as it significantly reduces the carbon footprint which the textile industry presently has because of the dispersed nature of the various segments -- from fiber to garment. "However, the industry looks forward to a faster implementation of the scheme as the industry presently does not have any important investment promotion scheme to address the need of capacity building for meeting the target of doubling the textile base to USD 350 billion by 2030," Mehra said. Rating agency ICRA in a recent report had said that investments in the textile value chain under PLI scheme and PM MITRA park and China Plus One strategy are expected to be the key growth drivers. PM MITRA parks will offer an opportunity to create an integrated textiles value chain and encourage capacity additions in the segment, ICRA said in its report on apparel and fabrics. A Competitive Incentive Support (CIS) up to Rs 300 crore per park to the units in PM MITRA park shall also be provided to incentivise speedy implementation. Convergence with other GOI schemes shall also be facilitated to ensure additional incentives to the Master Developer and investor units. Under the project, state governments where the parks are being established are supposed to provide contiguous and encumbrance-free land parcels of at least 1,000 acres and will also facilitate the provision of all utilities, reliable power supply, and water availability and waste water disposal system, an effective single window clearance as well as a conducive and stable industrial/textile policy.
Source: Economic Times
Finance Minister Nirmala Sitharaman on Monday will inaugurate a one-day conference of enforcement chiefs of all states and central GST officers to prevent tax evasion. The conference will focus on deliberate on combating GST evasion, fake invoicing, sharing best practices, synergy among tax formations, leveraging technology and data and providing ease of doing business, according to a finance ministry statement. "The conference will examine current challenges and delving into successful methodologies employed by both state and central enforcement authorities. Discussion on GST evasion via fake invoicing and strategising effective methods to combat it collaboratively will be on agenda," it said. Sitharaman will inaugurate the one-day conference and also deliver the keynote address. Union Minister of State for Finance, Shri Pankaj Chaudhary will also attend the conference. The one-day national conference will explore the potential of advanced technological tools and data analytics to enhance the accuracy and efficiency of enforcement efforts while striking the crucial equilibrium between facilitating a smooth business environment and implementing effective, deterrent enforcement measures. There will also be knowledge exchange through presentations by enforcement heads showcasing the most successful strategies and innovative approaches for tackling tax evasion. The aim is to build deeper collaboration and fostering greater synergy between state and central enforcement authorities, ensuring a unified and comprehensive approach, it said. "Embracing the spirit of cooperative federalism as exemplified by GST, this conference serves as a valuable platform for both Centre and state GST enforcement authorities to share best practices, foster mutual learning, and collectively strengthen the GST administration," the statement said.
Source: Money Control
Prime Minister Narendra Modi's upcoming visit to Adilabad, Telangana, is setting the stage for significant infrastructural developments, igniting optimism among local BJP leaders and the general populace. Scheduled for March 4, this visit is part of a larger initiative to launch development projects across multiple states, aimed at enhancing regional growth and prosperity. Modi's agenda is expected to include the inauguration of a new airport and a textile park, alongside discussions on reviving the Cement Corporation of India's unit and establishing a new railway line, marking a pivotal moment for Adilabad's economic landscape.
Strategic Investments and Developmental Aims
Central to Modi's visit is the commitment to infrastructural expansion and economic revitalization in Adilabad. The proposed airport and textile park are anticipated to leverage Adilabad's status as one of Asia's largest cotton producers, potentially transforming the region into a textile hub. Additionally, Modi's engagement with local leaders, including Chief Minister A Revanth Reddy, underscores a concerted effort to address long-standing developmental aspirations, such as the revival of the Cement Corporation's sick unit and the enhancement of rail connectivity through the Armoor-Adilabad line.
Wider Context and Anticipated Outcomes
The visit is part of a broader strategy by Modi to fortify the power sector and infrastructure across India, with Adilabad being a critical focal point for such initiatives in Telangana. The inauguration of projects worth over Rs 56,000 crores, including significant investments in thermal power, exemplifies the central government's push towards sustainable development and energy efficiency. Local leaders and citizens alike harbor high expectations that these projects will spur economic growth, generate employment opportunities, and improve the quality of life in Adilabad, positioning it as a key player in India's development narrative.
Looking Ahead: Implications for Adilabad and Beyond
The implications of Modi's visit and the subsequent developmental projects extend far beyond immediate economic upliftment. By focusing on infrastructure, Modi's administration aims to lay the groundwork for long-term prosperity, setting a precedent for other regions. The strategic focus on sectors like textiles and power not only aligns with India's broader economic goals but also addresses specific regional needs and potentials. As Adilabad and similar regions gear up for transformative changes, the ripple effects of these initiatives are likely to be felt across the nation, driving India's march towards comprehensive development and modernization.
Source: BNN News
has urged the textile mills in the region not to buy cotton in panic. In a press release, S K Sundararaman, chairman, SIMA, said the prices of domestic cotton had gone up by 10% to 12% in the past 15 days. He said the price of the widely used Shankar-6 variety of cotton had increased to Rs62,000 per candy, from Rs55,300 two weeks ago. He said the committee on cotton production and consumption had estimated the cotton production at 316.57 lakh bales in the current season, imports at 12 lakh bales and domestic consumption at 310 lakh bales “Capacity utilization at the mills has increased to 80%-90% from 70%-75% and around 20 lakh bales have already been placed to be exported. The demand for export will come down as the cotton price is fast approaching the international price,” he said. Globally, he said, the cotton availability was expected to be higher after July, thanks to the increased production in Australia, Brazil and other countries. “The intercontinental exchange of cotton futures is also expected to experience a huge inverse post July 2024, which in turn will soften the Indian domestic cotton prices. So, the spinning mills should avoid panic buying, as the cotton supply position looks comfortable,” he said.
Source: Times of India
Even as the demand for cotton from the textile mills remains subdued, traders say the surge in domestic cotton prices in the last two weeks will depend on the demand for textiles and apparels. According to Nishanth Asher, secretary of the Indian Cotton Federation, more than 60% of the cotton produced this season has come to the market. With prices going up, arrivals have reduced from 1.8 lakh bales a day to nearly one lakh bales. “Spinners are risk averse now as the global demand for textiles is low,” he said. “It is hard to say now what will happen to the prices. World cotton prices went up 15% in the last two weeks and corrected 3% or so on Friday. Prices will cool down if demand for the main textile products remains subdued,” he added. The International Cotton Advisory Committee on March 1 said the recent surge in global cotton prices “can be attributed primarily to a wave of speculative buying on the futures market.” The real situation will unfold in the next few months when plantings intensify. If the planted area remains less than the previous season and consumer sentiment improves, prices will increase, it said. Atul Ganatra, chairman of the Cotton Association of India, said the Intercontinental Exchange (ICE) futures market went from 80 cents to 103 cents for a pound in recent days and reduced slightly on March 1. At current prices, Indian cotton is cheaper than international prices and hence, cotton exports are likely to cross 20 lakh bales this season, he said.
Source: The Hindu
The target of $100 billion non-oil trade between India and the UAE by 2030 is ambitious but achievable as huge business opportunities are there in both the nations for sectors such as textiles, jewellery and pharma, CII President R Dinesh said on Sunday. He said that the free trade agreement between India and the UAE, which was implemented in May 2022, has resulted in a surge in bilateral trade and investments. Dinesh was here to participate in global investors’ event ’Investopia’ and various bilateral meetings, including with many participants at the WTO (World Trade Organisation) Ministerial Conference. "The target to achieve $100 billion in non-oil trade between India and UAE is ambitious but I do believe that it is achievable and recent developments are encouraging in this regard,” the CII president told.
Source: CNBC TV
Grasim Industries, the largest VSF producer, had about 18 months before the QCO, lobbied the Ministry of Textiles complaining of substandard imports from Indonesia and China.
IN LESS than a year since India enforced a strict quality control order (QCO) in April on viscose staple fibre (VSF), a key raw material in the textiles supply chain, its imports dropped 65 per cent, helped Aditya Birla Group-owned Grasim Industries consolidate its market share to 95 per cent from 90 per cent, and has started hurting the operations of small and medium sized spinning mills since it restricted access to cheaper raw material imports. A QCO is a non-tariff trade barrier that bars manufacturers, importers, and distributors from storing or selling a product without a licence from BIS that certifies specific quality standards being met. Grasim Industries, the largest VSF producer, had about 18 months before the QCO, lobbied the Ministry of Textiles complaining of substandard imports from Indonesia and China. Since the QCO was imposed, midstream VSF buyers like small- and medium-sized spinning mills have repeatedly raised concerns with the textiles ministry that such orders have held them back from cheaper VSF, which otherwise, helped them competitively export spun yarn and fabric. For MSME mills, these challenges come at a time when the textiles industry is reeling from a prolonged period of economic distress due to weak global demand.
Source: Times of India
India’s real gross domestic product (GDP) in fiscal 2023-24 (FY24) is estimated at ₹172.90 lakh crore compared to the first revised estimate (FRE) of ₹160.71 lakh crore for FY23 GDP, according to the ministry of statistics and programme implementation. Real GDP growth during FY24 is estimated at 7.6 per cent compared to 7 per cent in FY23. Nominal GDP, or GDP at current prices, in FY24 is estimated at ₹293.90 lakh crore compared to the FRE GDP of ₹269.50 lakh crore for FY23. The nominal GDP growth during FY24 is estimated at 9.1 per cent compared to 14.2 per cent in FY23. Real GDP in Q3 FY24 is estimated at ₹43.72 lakh crore compared to ₹40.35 lakh crore in Q3 FY23, showing a growth rate of 8.4 per cent. “Robust 8.4 per cent GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat [developed India]!,” Prime Minister Narendra Modi posted on X (formerly Twitter). The GDP at current prices in Q3 FY24 is estimated at ₹75.49 lakh crore compared to ₹68.58 lakh crore in Q3 FY23, showing a growth rate of 10.1 per cent, a ministry release said.
Source: Fibre2fashion
The latest data from S&P Global reveals that Vietnam's manufacturing sector experienced marginal growth in February, marking the second consecutive month of expansion. Both output and new orders saw an uptick, prompting renewed optimism among businesses. Employment levels also rose, with firms expressing the highest level of confidence in a year. The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 50.4 in February, indicating a marginal improvement in the sector's health. New orders, particularly from abroad, contributed to this growth, although the rate of growth in new export orders slowed, S&P Global said in a press release. Despite the growth, purchasing activity saw a slight decrease as companies opted to draw down inventories to meet demand. This strategy, however, led to a depletion of post-production inventories at the fastest rate in four months.
One notable trend was the increase in selling prices, driven by higher input costs. While the rise was modest, it reflects the challenges faced by manufacturers in managing costs amidst global economic fluctuations. Despite challenges such as shipping delays and rising transportation costs, business confidence remains high, with around 55 per cent of respondents expressing optimism. This positive sentiment is supported by production expansion plans and expectations of continued new order growth. Andrew Harker, economics director at S&P Global Market Intelligence, said: “Vietnamese manufacturers were able to build on the return to growth seen in January with a further expansion in February. Particularly positive elements of the latest PMI survey were renewed job creation and the strongest business confidence for a year. “The overall expansion remained relatively muted, however, and this led to further caution with regards to purchasing and inventory holdings. Likewise, although output prices increased following a fall in January, the rate of inflation was only marginal as some firms remained reluctant to hike prices in a competitive environment. Manufacturers will need to see stronger and sustained growth of new business before they can be confident enough to invest in inputs and start to raise their selling prices more in line with their own cost burdens.”
Source: Vietnan.net
The state is exerting strenuous efforts to restore the textile industry in Egypt to its previous high-quality rate as one of the pillars of the country's economy, said Cabinet media center Sunday. In a report, the center said such efforts depend on paying attention to improving the quality of cotton and providing appropriate environment for cotton growers to encourage them to increase the production. The report shed light on the direct successes of efforts aimed at developing the spinning and weaving industry, citing a report issued in 2020 by Fitch Ratings Inc., an American credit rating agency, that there is a big chance to increase textile and clothes production in Egypt and another report issued in 2020 by UNIDO, United Nation Industrial Development Organization, that the textile industry is an important element for Egyptian economy. It also pointed out to a report issued in 2023 by the US Department of Agriculture and another report the Monitor in 2022 that Egypt achieved successes in the textile industry and its exports.
Source: SIS.gov
The government has set the minimum monthly wage for textile workers at Tk10,000, or $90, according to a gazette notification dated 27 February, published today. The gazette notification was signed by Senior District Judge Liaquat Ali Molla, chairman of minimum wage board. This wage marks a 75% increase from the previous amount of Tk5,710 set in 2018. However, it falls short of the minimum wage for ready-made garment (RMG) workers, set three months ago at Tk12,500. According to the notification, the minimum wage for 10th-grade workers in this sector varies based on location: Tk10,700 in divisional cities, Tk10,350 in district cities, and Tk10,000 in upazilas and other areas. For the highest grade (number one), the minimum wage will be Tk15,273 in divisional cities, Tk14,789 in district cities, and Tk14,304 in upazilas and other areas. Labour leaders have criticised the Tk10,000 minimum wage as insufficient and unacceptable, considering current inflation and market prices. They demanded a wage that reflects the higher cost of living. In defence of the proposed wage, textile entrepreneurs highlighted the 75% increase, which surpasses the 56% hike in the garment sector. Monsoor Ahmed, acting secretary-general of the Bangladesh Textile Mills Association (BTMA), recently told The Business Standard that the 1,780 BTMA affiliated factories employ around 500,000 workers and the potential workforce can exceed 800,000 if non-member factories are considered. However, could not provide the exact number of non-member factories, when asked. Md Shahjahan Saju, the worker representative on the wage board for the textile sector, told The Business Standard, "Our initial demand was Tk25,600. However, all parties on the board settled on Tk10,000." Meanwhile, the international labour lobby, IndustriALL Global Union, deemed the new wage hike as "too little", considering Bangladesh's inflation rate. In a press release, on 28 February, Atle Høie, IndustriALL general secretary, said, "Bangladesh's wage board needs to take into consideration the rising cost of living while fixing the minimum wage. IndustriALL calls on the government to engage with trade unions and seriously consider their demands."
Source: tbs News
US Congresswoman Rosa DeLauro along with 40 lawmakers recently wrote to homeland security secretary Alexander Mayorkas urging him to provide an enforcement plan to address illegal customs practices that undercut US competitiveness and violate international trade and labour laws. The letter requested a crackdown on the de minimis trade loopholes allowing cheap fastfashion products to flow into the country. Moreover, drug cartels and criminals are exploiting these loopholes, which have facilitated the import of deadly drugs like fentanyl into the United States, the letter said. “In fact, this enforcement plan is needed to further the goals of the President’s US Supply Chain Resilience project… Without a demonstrative, expeditious, and effective customs enforcement plan, the devastation currently felt throughout the critically important textile production chain that employs nearly 550,000 US workers and produces almost $66 billion in output annually will only worsen...,” the letter said. “The scale and the scope of illegal customs practices that are undercutting the competitiveness of our manufacturers is [sic] daunting,” the lawmakers continued. “This letter comes at a critical time in our industry as it has lost 10 plants in recent months. We agree with the Congresswoman that the Administration plan should close the de minimis loophole harming our sector and facilitating illegal and illicit products,” said Kim Glas, president and chief executive officer of the National Council of Textile Organisations (NCTO). “We also strongly agree it must be implemented swiftly and include stepped up enforcement of false origin claims under our free trade agreements with maximum penalties and stepped-up enforcement of the UFLPA [Uyghur Forced Labor Prevention Act] with associated penalties,” he added. US Senators Sherrod Brown (Democratic, Ohio) and Rick Scott (Republican, Florida) had urged the government late last month to take executive action to stop the abuse of a rule, known as ‘de minimis’, which foreign competitors like China exploit to avoid paying duties and fees to unfairly compete with American businesses.
Source: Fibre2fashion
