Ludhiana: Punjab Dyers Association on Monday met representatives of Union ministries of textiles, and industries and commerce, and raised the issue of unrestricted dumping of fabrics imported from China. They said the import duty on the Chinese fabrics was too less and unfair to the domestic market. They demanded a minimum import price on the fabric being imported from China to give a level-playing field to the domestic industry. The delegation said fabric worth Rs 400 per kg was being imported with under value at Rs 40-50 per kg. They informed officials of the two ministries that govt is suffering huge losses due unrestricted dumping of fabrics from China. Bobby Jindal, leader of Punjab Dyers Association, said unfair dumping of fabrics was causing losses to Indian textile industry. He pointed out that this practice had created immense pressure on domestic players, jeopardising jobs, revenue, and production capacity.
Source: Times of India
India’s manufacturing sector entered the end of this fiscal (FY24) with a further pick-up in growth in February, according to the HSBC India purchasing managers’ index (PMI). The seasonally-adjusted HSBC India manufacturing PMI recovered further from December's 18-month low, rising from 56.5 in January to 56.9 in February, pointing to the strongest improvement in the health of the sector since September last year. Production rose at the fastest pace in five months, fuelled the quickest increase in sales since last September and the strongest expansion in new export orders for 21 months, according to a release from S&P Global. An improvement in demand for raw materials, meanwhile, supported the rebuilding of input inventories, while supplier delivery times were broadly stable. Concurrently, purchasing cost inflation retreated to a 43-month low, with selling charges increasing to a lesser extent as a result. Production levels were raised in tandem with a further steep increase in inflows of new orders. The upturn in manufacturing output was the strongest seen for five months. Similarly, factory orders expanded at the quickest pace since September and one that was above the long-run series average. Firms indicated that marketing efforts continued to bear fruit, helped by a positive demand environment. Input costs meanwhile increased only fractionally, with the rate of inflation subsiding to the weakest in the current sequence of inflation that stretches back to August 2020. Prices charged by Indian manufacturers increased at a slower rate, the joint-weakest since March 2023. February saw a further pick-up in manufacturers’ purchasing activity, with the rate of growth up to the fastest since September 2023. Firms reportedly scaled up buying levels in response to greater production requirements, sustained increases in sales and to build safety stocks. Despite the uptick in growth momentum, manufacturing employment in India was littlechanged halfway through the final fiscal quarter. The February survey data also indicated sustained optimism among manufacturers regarding the year-ahead outlook for production. The overall level of confidence was the second-highest since December 2022.
Source: Fibre2fashion
Textile supply chain business ColossusTex has expanded its offering by launching ‘Graphene Yarn’ as an anti-bacterial, sustainable, and health-oriented textile. The business also launched three new yarns named Cotlook, Magic Sparkle, and Silk shine at recent trade show Bharat Tex 2024 in New Delhi. The ColossusTex team at Bharat Tex in New Delhi last week – ColossusTex. “ColossusTex’s Graphene Yarn marks a significant leap in innovation and sustainability,” said ColossusTex’s managing director Rohit Dev Sethi in a press release. “We are thrilled to launch this ground breaking product, a testament to our unwavering commitment to pushing boundaries. These advancements underscore our dedication to future-proofing businesses, ensuring sustainability, and delivering substantial returns on investments through tailored and ground breaking approaches. We are grateful for the positive observations and appreciation from esteemed ministry officials, reinforcing our belief in the transformative impact of graphene technology.” ColossusTex’s new Graphene Yarn has an anti-bacterial rate of 99% and is designed to eliminate odours and reduce the risk of skin disease. The yarn features far-infrared health care technology which promotes microcirculation on the body surface and is also anti-viral. The business’ new Cotlook, Magic Sparkle, and Silkshine yarns have been conceptualised to reduce textile waste in the carpet industry. “We are very glad to receive the appreciation from Smt. Shubhra, Trade Advisor, Ministry of Textile, Shri Anil Kumar, Director, Ministry of Textile, Shri Prashant Kumar Meena, Joint Mission Director, Ministry of Textile for our new products,” said Sethi. ColossusTex has a quarter century’s experience in the Indian textile value chain. The business aims to promote eco-sustainable production practices in India’s textile industry.
Source: Jara News
The proposed free trade agreement between India and the European Free Trade Association (EFTA) countries, with a commitment of $100-billion investments from the four country bloc into India over the next 15 years generating an estimated 1 million jobs, may be formalised soon as the pact “is ready” and going through legal scrutiny, sources have said. “This is the first FTA for India where it has been able to get a commitment on investment and employment from the partner nations. The EFTA countries are looking at investing in joint ventures in areas such as pharmaceuticals, especially medical devices, certain chemicals, food processing and engineering products,” an official tracking the matter told businessline. Free trade pact EFTA countries, which include Switzerland, Finland, Norway and Leichtenstein, re-started their negotiations for a free trade pact with India, formally called a broad-based Trade and Investment Agreement, in October 2016. The various chapters contained in the proposed pact include trade in goods, rules of origin, trade in services, investment promotion & cooperation, trade & sustainable development, and customs & trade facilitation. The promised investments that will flow into India from the EFTA countries is likely to be made from their provident funds, the official said. The JV areas that the countries have short-listed mainly include areas where there is no competition from India. “EFTA has agreed to the condition of investments being made in India because they are getting market access. Also, they are not our competitors in the identified sectors. For instance, in India most of the medical devices are being imported from China. The pact will lead to diversification of imports which is absolutely necessary,” the official added. Exports to EFTA India’s exports to the EFTA bloc in 2023 (calendar year) were at $1.87 billion, with items such as chemicals, pharmaceuticals, apparel and pearls, precious & semi-precious stones, dominating the export basked. On the other hand, it imported goods worth $20.45 billion from the EFTA countries in 2023 with inflows of pearls, precious or semi-precious stones, precious metals, and coins valued at $16.7 billion. A senior government official had earlier clarified that India will not go against the interests of its generic drugs industry in any of the Free Trade Agreements (FTA) it is negotiating with its partner countries, and had rejected the demand for `data exclusivity’ provision in the free trade pact with the EFTA bloc. “There is a likelihood that the free trade pact between India and the EFTA can be formalised before the Indian elections are announced as all the ground work has been done,” the official said.
Source: The Hindu
India's export values across all commodities declined to $351 billion during April-January from $366 billion a year ago, underlining the impact of global economic slowdown and tightening of interest rates in Western countries.
New Delhi: Four of India's top five merchandise exports, in value terms, fell or were flat during the first ten months of the current fiscal year, according to commerce ministry data. These include engineering goods, which comprise 25% of all exports in value terms, compared with the year-ago period. The total export value of petroleum products declined to $67.11 billion during the first 10 months of the fiscal year, down from $75.65 billion in the year-ago period. Earnings from petroleum shipments fell steeply due to the global economic slowdown, a Gems and jewellery exports declined to $26.89 billion during the first 10 months from $31.61 billion in the year-ago period. Export of chemicals, both organic and inorganic, in value terms, fell to $22.64 billion during the April-January of FY24, down 11.7% from the year-ago period. Overall, India's export values across all commodities declined to $351 billion during AprilJanuary from $366 billion a year ago, underlining the impact of global economic slowdown and tightening of interest rates in Western countries. Challenges like geopolitical tensions in Ukraine and West Asia, as well as trade route disruptions in the Red Sea region, have exacerbated the situation by increasing oil prices and transport costs, thus hurting India's exports. Despite these setbacks, global trade is expected to stabilise in FY2025. "Many of the world's largest economies held up reasonably well considering the sheer breadth of the Challenges like geopolitical tensions in Ukraine and West Asia, as well as trade route disruptions in the Red Sea region, have exacerbated the situation by increasing oil prices headwinds they faced in the last two years, including high interest rates, the stress in interest rate-sensitive and energy-intensive industries, volatile commodity prices, fiscal consolidation, a strong dollar and conflicts in places integral to the global economy," rating agency Moodys said in its latest global macroeconomic outlook report. "We expect a steady normalization in economic activity through this year (CY2024) and next (CY2025) across advanced and emerging market countries," it added.
Source: Live Mint
Industry experts recently emphasised that expeditious implementation of the ambitious PM MITRA scheme, aimed at developing seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks, will significantly attract large investments, including Foreign Direct Investment (FDI), in the sector while generating substantial employment. Mithileshwar Thakur, secretary general of Apparel Export Promotion Council (AEPC), reportedly stated that PM MITRA parks aim to tackle longstanding challenges in the textile industry, integrating the entire value chain under one roof, inspired by the PM’s 5F vision while Rakesh Mehra, chairman of Confederation of Indian Textile Industry (CITI), hailed the PM MITRA scheme as a pioneering effort for capacity building and investment attraction. Prime Minister Narendra Modi, during the inauguration of Bharat Tex 2024, had unveiled plans to establish seven PM MITRA parks across various states, emphasising the creation of opportunities for the entire textile sector. These parks, set to be located in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra, aim to generate around ₹70,000 crore of investment and create 20 lakh employment opportunities. The Union ministry of textiles is overseeing the execution of these projects, with each park to be managed by a special purpose vehicle (SPV) owned by the centre and state governments. According to a recent report by rating agency ICRA, the PM MITRA parks, along with other government schemes, are expected to drive growth in the textile sector even as these schemes offer Competitive Incentive Support (CIS) and facilitates convergence with other government schemes to incentivise speedy implementation and attract investment. State governments are required to provide land parcels and utilities to support the establishment of these parks, ensuring seamless operations and growth in the textile value chain.
Source: Fibre2fashion
Union Finance Minister Nirmala Sitharaman on March 4 asked the central and state GST officials to provide clarification on classification-related issues under the indirect tax regime at the earliest. “Sitharaman stressed that clarity on classification-related issues should be looked into at the earliest through appropriate channels. She exhorted the GST officials to engage with stakeholders to understand their concerns, enhance compliance, streamline processes, and work collaboratively towards making the tax system more transparent and efficient,” the Finance Ministry said in a statement. Sitharaman was speaking at the inaugural national conference of enforcement chiefs of the states and the central Goods and Services Tax (GST) in New Delhi. The conference aimed at facilitating understanding and streamlining operations of the tax authorities in enforcement actions undertaken by different indirect tax authorities. Minister of State for Finance Shri Pankaj Chaudhary, Revenue Secretary Sanjay Malhotra, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Agarwal, GSTN CEO and other heads of enforcement like the Chairman Central Board of Direct Taxes (CBDT), Directorate of Enforcement (ED) Director, Narcotics Control Bureau Director were also present at the conference. The GST law provides a classification framework based on Harmonized System of Nomenclature (HSN) codes for goods and services. The GST system encompasses a wide range of goods and services, making classification complex. Determining the appropriate classification for specific goods or services can be challenging, especially for items that don't neatly fit into predefined categories. There can be ambiguity in the classification guidelines provided by the GST authorities, leading to confusion among taxpayers. This ambiguity may arise due to differences in interpretation or lack of clear guidance on certain items. Incorrect classification can result in the misapplication of input tax credit, leading to compliance issues and potential tax liabilities. Classification disputes between taxpayers and tax authorities arise due to disagreements regarding the correct classification of goods or services, leading to lengthy and costly legal proceedings. Sitharaman urged all the GST formations to leverage technology to plug the loopholes as well as provide better taxpayer services. She also emphasised the need for seamless coordination across states. “The enforcement chiefs of Centre and states can leverage this platform for discussing obstacles, exchanging successful strategies and advancing towards a more robust and harmonious tax infrastructure,” she said.
Source: The Economic Times
In the realm of global fashion, heritage holds a unique appeal. It interlinks tradition with innovation, crafting narratives that resonate across cultures and generations. For Bangladesh, a country rich in history and textile heritage, embracing this essence presents an unparalleled opportunity to ascend the ranks of the global apparel market. As the nation sets its sights on a lofty $100 billion export target, harnessing the power of heritage fashion items emerges as a strategic imperative. The global luxury fashion market size was valued at USD 123.05 billion in 2022. It is estimated to reach USD 198.55 billion by 2031, growing at a CAGR of 5.46% during the forecast period (2023–2031). Our neighboring country India has been exporting heritage fashion garments worth $5 billion annually. Last year, Bangladesh exported garment items (woven and knitted items) worth $46.99 billion where the contribution of heritage fashion products was very low. Bangladesh’s locally manufactured textiles like muslin, jamdani, silk, Nakshi Kantha and khadi, which are rooted in the nation's cultural past, have the potential to significantly increase substantial portion of the global market share of high-value apparel products. The BGMEA has been trying to diversify the export items for the past few years to achieve the $100 billion export target. Recently it organized the first-ever Bangladesh Heritage Festival 2024 at the BGMEA Complex in Uttara to promote and celebrate the cultural and heritage treasures of Bangladesh. Bangladesh's apparel industry has long been synonymous with mass production and competitive pricing. However, in an increasingly discerning market landscape, differentiation is key. Heritage fashion offers a distinct advantage in this regard, transcending the ephemeral trends to embody timeless elegance and cultural resonance. By infusing contemporary designs with traditional techniques, Bangladesh can carve out a niche that celebrates its rich heritage while captivating global audiences. One of the defining characteristics of heritage fashion is its sustainability. In an era marked by growing environmental consciousness, consumers are increasingly gravitating towards products with a smaller ecological footprint. Bangladesh's emphasis on handcrafted textiles and natural dyes aligns seamlessly with this ethos, offering eco-conscious consumers an alternative to mass-produced, environmentally taxing garments. Moreover, heritage fashion fosters a sense of community empowerment. By championing local artisans and preserving traditional craftsmanship, Bangladesh can uplift marginalized communities and empower women in particular, who often play a pivotal role in the textile industry. This social dimension adds depth to the narrative surrounding Bangladeshi fashion, resonating with consumers who value ethical production practices and social responsibility. In a global marketplace saturated with fast fashion, heritage items stand out as a beacon of authenticity and quality. Bangladesh's strategic positioning as a hub for heritage fashion can thus serve as a catalyst for elevating the country's apparel exports to unprecedented heights. By leveraging its cultural heritage as a source of competitive advantage, Bangladesh can unlock new avenues for growth and innovation in the global fashion arena. However, realizing this vision requires a concerted effort from various stakeholders. Government support is instrumental in providing infrastructure and incentives to foster the growth of heritage fashion enterprises. Investments in skills development and technological innovation can enhance the competitiveness of Bangladesh's artisanal sector, enabling it to meet the demands of discerning global consumers.
Source: Textile Today
Bangladesh’s continued access to duty-free markets for three years post-graduation from the least-developed country (LDC) category was affirmed by 166 members of the World Trade Organisation (WTO) at the Ministerial Conference in Abu Dhabi recently. This extension ensures that Bangladesh will receive LDC-specific technical assistance and capacity-building for a three-year period after the UN General Assembly’s decision to graduate from the LDC category becomes effective. The decision was reached after intense negotiations spanning over five days during the 13th WTO Ministerial Conference from February 26 to March 1. Bangladesh, which joined the LDC group in 1975 and is set to leave it in November 2026, faced uncertainty regarding potential trade losses amounting to $7 billion annually postgraduation due to the erosion of the preferential trade facilities. However, this uncertainty has now been alleviated until 2029. The extension was sought by the LDC group, chaired by Djibouti, in 2020 amid the severe economic repercussions of the COVID-19 pandemic. The subsequent outbreak of the Russia-Ukraine war further compounded the challenges faced by the LDCs and the lowincome countries, bolstering the justification for the extension. Although the decision to extend trade benefits to graduated LDCs was made at the 12th Ministerial Conference in Geneva in June 2022, the timeframe was not specified until the recent Ministerial Conference in Abu Dhabi. Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD) in Bangladesh, highlighted the opportunity for Bangladesh to negotiate trade benefits with the key partners such as the European Union, China, India, the UK, and South Korea. However, Bangladesh will not benefit from trade preferences in the US, as it lacks a preferential duty programme for LDCs. Bangladesh’s international trade, primarily reliant on duty benefits under the LDC category, has propelled it to become the second-largest apparel supplier globally after China even if currently, 73 per cent of the country's shipments enjoy LDC-linked market access, making it the highest beneficiary among the 45 LDCs. Regarding the Trade-Related Aspects of Intellectual Property Rights (TRIPs), no decision was made at the summit, implying that Bangladesh will not be eligible for patent waivers in pharmaceutical production post-transition. While the EU typically grants a three-year grace period to graduating LDCs, Bangladesh is already guaranteed trade benefits until 2029. The European Commission acknowledged the WTO’s efforts to improve the implementation of special and differential treatment for developing countries in key areas of market access standards. However, consensus was not reached on key issues such as fisheries subsidies and public stockholding of food during the Ministerial Conference in Abu Dhabi.
Source: Fibre2fashion
China will set a gross domestic product (GDP) growth target of around 5% for the year, one of its lowest in decades and in line with last year, according to a copy of the government’s annual work report seen by Bloomberg News. Premier Li Qiang will officially unveil the annual GDP target while delivering his first work report to the national parliament, which kicks off Tuesday. The government is also targeting unemployment of around 5.5% in 2024 and aims to add 12 million urban jobs, according to the report. Moreover, China’s budget deficit is projected at 3% of GDP for 2024 and the country’s military budget will increase by 7.2% and be set at 1.665 trillion yuan ($231.4 billion) this year, according to Lianhe Zaobao citing the government documents seen by reporters. The National People’s Congress meeting comes as top leaders try to restore faith in an economy grappling with a post-pandemic slowdown. Despite that, China’s No. 2 official has signaled authorities won’t rely on massive stimulus to drive expansion as they try to break the country’s reliance on debt-driven growth, Bloomberg reported. Li’s report will also provide clues on authorities’ specific plans for fiscal and monetary stimulus, which could impact global commodity prices and inflation.
Source: Live Mint
