The Indian government has implemented a minimum import price (MIP) of $3.50 per kg on five specified HS codes of synthetic knitted fabric with immediate effect. The domestic industry had been consistently demanding the imposition of MIP to restrict the influx of cheaper synthetic fabric. The industry had alleged that there was dumping of synthetic fabric, especially from China, based on under-invoicing practices, which had caused significant damage to the domestic synthetic fabric industry. Industry bodies have welcomed this step and stated that it is a crucial measure to protect the domestic industry from the flooding of the product. The Directorate General of Foreign Trade (DGFT) issued a notification on Saturday, imposing an MIP of $3.50 per kg on five specific HS codes of synthetic knitted fabrics, namely 60063100, 60063200, 60063300, 60063400, and 60069000. This notification is effective immediately and will remain in place until September 15, 2024. t is noteworthy that the Minister for Commerce and Industry and Textiles, Piyush Goyal, during a Textile Advisory Group (TAG) meeting in January 2024, assured that the issue of undervalued imports of knitted fabrics would be addressed within a few months. Earlier last week, a meeting was held to further discuss the matter, which ultimately led to the decision to safeguard the industry by imposing a minimum import price on the relevant HS codes. Sanjay Garg, president of the North India Textile Mills Association (NITMA), extended his wholehearted appreciation to the Minister for Commerce & Industry and Textiles, Piyush Goyal, and the Ministry of Textiles for the MIP on synthetic knitted fabrics. He mentioned that NITMA had actively pursued this critical issue, engaging with all relevant ministries over the past year. He welcomed the recent decision to impose MIP on synthetic knitted fabrics, expecting it to effectively curb the import of undervalued synthetic knitted fabrics being dumped into India, thus providing much-needed relief to an industry that has suffered from this practice for years. Garg emphasised that the enforcement of MIP on synthetic knitted fabrics is a crucial step in protecting the domestic man-made fibre (MMF) industry and ensuring a fair marketplace for all stakeholders. He encouraged everyone to continue upholding these standards to foster growth, innovation, and prosperity within the textile sector.
Source: Times of India
The Rajasthan government has prepared a draft policy to boost exports through ease of doing business, faster clearances, and digital infrastructure. The government is seeking suggestions from industrialists, exporters, and trade bodies on the policy, sources in the government said. “Now that the model code of conduct is in force, the final policy will be announced after the Lok Sabha elections,” they added. According to the draft Export Promotion Policy 2024, Rajasthan was the 11th largest exporting state in India in 2022-23 (FY23) with exports valued at $9.69 billion, which was 2.15 per cent of the country’s total exports. Considering the sectoral advantages within the state’s economy, the draft policy said, foreign trade would help uplift its economic prospects and create jobs on a large scale. The draft policy strives to have competitive export logistics in the state for all modes. The focus will also be on skill development programmes to encourage entrepreneurship in the field. Between FY19 and FY23, exports from Rajasthan recorded a compound annual growth rate (CAGR) of 8.22 per cent, slightly higher than India’s overall export growth rate of 8.11 per cent during the same period. The US was the state’s primary export destination in 2022-23 with a share of over 22.50 per cent, according to government data. The Rajasthan government has prepared a draft policy to boost exports through ease of doing business, faster clearances, and digital infrastructure. The government is seeking suggestions from industrialists, exporters, and trade bodies on the policy, sources in the government said. “Now that the model code of conduct is in force, the final policy will be announced after the Lok Sabha elections,” they added. According to the draft Export Promotion Policy 2024, Rajasthan was the 11th largest exporting state in India in 2022-23 (FY23) with exports valued at $9.69 billion, which was 2.15 per cent of the country’s total exports. Considering the sectoral advantages within the state’s economy, the draft policy said, foreign trade would help uplift its economic prospects and create jobs on a large scale. The draft policy strives to have competitive export logistics in the state for all modes. The focus will also be on skill development programmes to encourage entrepreneurship in the field. Between FY19 and FY23, exports from Rajasthan recorded a compound annual growth rate (CAGR) of 8.22 per cent, slightly higher than India’s overall export growth rate of 8.11 per cent during the same period. The US was the state’s primary export destination in 2022-23 with a share of over 22.50 per cent, according to government data.
Source : Business Standard
NEW DELHI : Odisha has set an ambitious target of attracting an investment of ₹10,000 crore for its textiles sector over the next five years, with the aim to bolster the state's economy by creating more than 100,000 job opportunities. In a conversation with Mint, Bhupendra Singh Poonia, managing director, Industrial Promotion & Investment Corporation of Odisha (IPICOL), said, “The state government has approved projects in the textiles sector under the revised Industrial Policy Regulation (IPR) that offers a 30% reimbursement facility to investors in the textiles sector." Investors can expect this incentive to be disbursed in five equal annual installments, translating to a 6% reimbursement each year, starting after the commencement of commercial production. This strategy is part of a broader push, encapsulated in the technology-focused IPR introduced in December 2022, to draw investments into a range of textiles categories, including apparel and technical textiles, across both synthetic and natural fibres. "As of now, Odisha has a negligible presence in textiles export and is working to increase its share, particularly in technical textiles and apparel, given the potential that the state has," he said. “We have approved 26 proposals in this sector, and they are in different stages of commissioning, land allotment, design drawing, approval, etc.," Poonia said. The state, which previously had limited activity in this sector, now boasts significant investment commitments from both national and international players, said Poonia, a 2008 batch IAS officer. Companies like Shahi, Aditya Birla, local entity White Lotus, and Welspun Living are among those who have pledged investments ranging from ₹50 crore to ₹4,000 crore. Shahi, Welspun Living and Trident refused to comment on the development.
Source: Live Mint
Synopsis Amitabh Kant underscores learning from Israel's procurement model, advocates for government as first buyer, and promotes women-led development in startups. He emphasizes women's pivotal role in driving India's entrepreneurial landscape and fostering innovation. The G20 Sherpa and former CEO of Niti Aayog Amitabh Kant delivered an address emphasizing the importance of learning from Israel's procurement model and promoting women-led development within the startup ecosystem at the inauguration of 'Startup Mahakumbh' at Bharat Mandapam on Monday. Kant underscored the necessity of studying Israel's approach to innovation, particularly in sectors such as military technology, cybersecurity, and defense equipment. He highlighted that Israel's significant growth in these areas stemmed from the government's role as the first buyer Kant said, "There is a need for us to learn from other countries one of which is Israel because they started innovating in military tech, cyber security, defence equipment. By initiating procurement and aggregating demand, the government catalyzed growth for startups, ultimately driving economic expansion." "Growth comes when government is the first buyer," stated Kant. "By emulating Israel's procurement strategies, we can provide the impetus needed for Indian startups to thrive and contribute to the nation's growth." Furthermore, Kant advocated for the establishment of similar procurement initiatives, akin to India's Defense Expo (IDEX), across five to six other ministries. This, he argued, would create additional opportunities for startups to secure government contracts, fostering innovation and economic development across various sectors. Kant stated, "If they (government) are able to aggregate and make the first procurement then it will be the biggest catalyst for driving the big growth in many of these startups which are able to create growth for India. Therefore, my belief is that we need like IDEX is doing or defence, you need to create IDEX in 5-6 other procurement ministries." Addressing concerns regarding gender representation in the startup ecosystem, Kant emphasized the pivotal role of women in driving India's entrepreneurial landscape forward. He commended the efforts of Prime Minister Narendra Modi in advocating for women-led development within the G20 nations, citing it as a significant step towards inclusivity and progress. "Lastly many people said there, is about women representations, my view in this is huge push for women led development by the prime minister in G20 is Kant added, "We were able to bring women led development across all the G20 countries from China to Saudi Arabia and everybody agreed to women led development and therefore the startup movement of India must be driven by the women of India in a very big way. We need women as innovators and founders." By advocating for strategic procurement policies and championing women's participation, he highlighted key pathways for fostering innovation and driving inclusive growth in the country.
Source: The Economic Times
Synopsis Morgan Stanley predicts India won't match China's past high growth rates, foreseeing a steady 6.5%-7% growth due to infrastructure and workforce limitations. Despite this, India's economic prospects are positive, resembling the mid-2000s boom. However, replacing China as a manufacturing hub seems unlikely. India's recent growth and potential rate cuts by the Reserve Bank of India are key factors to watch. India is unlikely to achieve the 8%-10% economic growth rates that China pulled off over the long term, Morgan Stanley’s chief Asia economist said, even though the investment bank remains optimistic about the South Asian nation’s prospects. India’s economy will likely grow steadily at 6.5%-7% over the long term, Chetan Ahya said in an interview on Monday with Bloomberg Television’s Haslinda Amin. The South Asian nation is also far from replacing its bigger rival as a global manufacturing hub, he added. China’s growth averaged 10% a year in the three decades after its economic reforms in 1978, official figures show Economic progress in India is being hamstrung by a lack of infrastructure, and a low skilled workforce, Ahya said. “Both these constraints make us believe that India’s growth is going to be strong, but at 6.5%-7% rather than 8%-10%,” he said. Even so, Morgan Stanley remains upbeat about India’s prospects, and said in a recent report that the current expansion resembles that of the mid-2000s boom, fueled by rising investment. India “will have its rightful place,” and early signs of the economy’s rise are visible in the increase in capital flows and the gain in India’s share of global foreign direct investment, he said. “But to say that India will replace China or compete very heavily with China in the manufacturing sector, we think that’s less likely,” he said. “China is far more advanced” in manufacturing and getting into new industries such as renewable, space, and legacy semiconductors, Ahya said. “India is going to take time to get to that type of competitiveness,” he said. India posted a growth rate of 8.4% in the final three months of 2023, although economists have raised questions about the strength of the data. Government officials have said the economy will likely grow 7% in the fiscal year that begins in April, after an expected expansion of 7.6% this financial year. Ahya said strong growth may influence the timing of the Reserve Bank of India’s interest rate cuts this year. While Morgan Stanley’s base case is still for a“shallow rate cut cycle” beginning in June, surprises in growth could lead to a “possibility that the RBI either delay the rate cut or probably not take it up at all.” RBI Governor Shaktikanta Das has said he won’t be willing to cut rates unless inflation settles around the 4% target on a sustainable basis. Latest data for February showed inflation was still more than 1 percentage point higher than the target.
Source: The Economic Times
Nigeria spent N1.39 trillion (~$887.9 million) in the fourth quarter (Q4) last year on importing seven out of the 43 items earlier restricted by the country’s central bank from accessing foreign exchange (forex) on its official platform.Goods worth N4.29 trillion (~$2.74 billion) were imported in 2023—a year-on-year (YoY) rise of close to cent per cent. Textiles worth N377.18 billion (~$240.93 million) were imported during the year, domestic media outlets reported. After the Central Bank of Nigeria (CBN) categorised 41 import items in 2015 as not valid for forex, importers of those commodities were forced to source forex in the black market at higher rates, putting pressure on the naira. The ban was lifted last October. “Recent World Bank estimates show that removing import restrictions could lower the prices of affected items by 4.7 per cent. This would lead to an overall increase in purchasing power which, in turn, would lift about 1.3 million people (around 0.6 per cent of the population) out of poverty,” the World Bank had noted in the December 2023 edition of its Nigeria Development Update.
Source: Fashion Network
In a strategic move poised to significantly bolster Turkish apparel exports to the US, the Istanbul Apparel Exporters' Association (IHKIB) has signed a collaboration agreement with the Worldwide Responsible Accredited Production (WRAP). This partnership aims to elevate Turkiye's standing in the global apparel market by ensuring that its exports meet the highest standards of ethical and sustainable production. Highlighting the significance of this partnership, Selcuk Mehmet Kaya, chairman of the International Relations and Sustainability Committee of IHKIB, and Avedis Seferian, president and CEO of WRAP, signed a Good-Will Agreement. This pact inaugurates a pilot project targeting the elevation of Turkish apparel companies' profile in the US market. Selected companies will be encouraged to pursue WRAP certification, with WRAP providing comprehensive support through both in-person and virtual training, free of charge. This initiative not only aims to streamline the certification process for Turkish exporters but also seeks to fortify the commercial and cultural ties between Turkiye and the US. IHKIB, which represents the lion's share—80 per cent—of Turkiye's apparel export sector, has long been at the forefront of initiatives designed to enhance the industry's global reach and operational excellence. The association's proactive engagement in facilitating market access and fostering sectoral innovation underscores its pivotal role in Turkiye's economic landscape. The collaboration with WRAP, a prestigious US-based non-profit organisation, underscores a mutual commitment to advancing safe, legal, and ethical practices within the textile and apparel sector. WRAP certification, revered globally, signifies adherence to rigorous standards in workers' rights, health and safety, environmental stewardship, and legal compliance. This certification is instrumental in mitigating audit fatigue and propelling competitive advantage on the world stage, a boon for the over 3,500 WRAP-certified facilities worldwide. "This partnership with WRAP aligns seamlessly with our mission to guide IHKIB members towards excellence, sustainability, and global competitiveness, ultimately contributing to our goal of increasing Turkish apparel exports in the lucrative US market," said Selcuk Mehmet Kaya. "WRAP is committed to promoting responsible and ethical practices in the global textile and apparel industry. Partnering with organisations like IHKIB allows us to extend our reach and contribute to the success of Turkish exporters, reinforcing our shared values,” said Avedis Seferian.
Source: Just Style
The International Textile Manufacturers Federation (ITMF) and the International Apparel Federation (IAF) announce a joint convention, scheduled from 8-10 September 2024 in Samarkand, Uzbekistan to expand the view of the country’s booming textile and garment industry. Themed “Innovation, Cooperation & Regulation – Drivers of the Textile & Apparel Industry,” the decision to host the joint convention in collaboration with the Uzbek Textile & Apparel Industry Association (Uztextileprom) reflects the shared belief of IAF and ITMF in the necessity for the industry to “jointly discuss collective solutions for our common industry challenges.” One of the key highlights of the ITMF, IAF joint convention is the spotlight on Uzbekistan’s evolving textile and garment industry both during the conference programme and during the planned factory visits. Uzbekistan has transformed over the past decade from a major cotton exporter to a cotton-importing nation. This shift has developed a textile and apparel industry that is in an exciting early stage of rapid development. The convention plans to assemble stakeholders from across the supply chain, including raw material suppliers, spinners, weavers, machine suppliers, garment and home textile manufacturers, brands, retailers, solution providers, and educators. Recognising that manufacturers play a key role in shaping the future of fashion, the ITMF, IAF joint convention aims to foster dialogue and cooperation among stakeholders. Key topics range from environmental sustainability to digital transformation, and supply chain transparency.
Source: Just Style
LAHORE: After experiencing slight increases in export figures for two consecutive months, Pakistan’s textile exports have once again entered negative territory on a month-on-month basis. According to the latest figures released by the Pakistan Bureau of Statistics on Monday, textile group exports for February 2024 declined by 3.31% compared to January 2024, with February figures totalling $1.41 billion against January’s $1.46 billion. On a yearly basis, textile product exports managed to remain in positive territory, showing an increase of 19.20%. Export figures for February 2023 were recorded at $1.18 billion. The textile sector is a cornerstone of Pakistan’s economy, with stakeholders claiming it contributes around 60% overall. However, despite this significant role, it is not performing as expected, and the situation is deteriorating. After nearly a year of negative export figures, the sector entered positive territory in December 2023. However, it only remained positive for two consecutive months before returning to negative territory.
Breakdown of the data shows that raw cotton exports remained flat in February 2024 at zero billion dollars, marking a 100% decline on a month-on-month basis. Cotton yarn exports for February 2024 amounted to $78,428 million, a decline of 3.46% from January’s $81,295 million. However, on a yearly basis, they increased by 41.16%, with February 2023 figures at $55,597 million. Cotton cloth exports saw an increase of 8.63% in February 2024 ($173,501 million) compared to January 2024 ($159,719 million), and a yearly growth of 12.13%. The knitwear sector also remained in negative territory, with February 2024 figures at $335,964 million against January 2024’s $365,050 million, a decline of 7.97%. However, on a yearly basis, it showed an increase of 21.24%. Bedwear sector exports also declined by 3.27% month-on-month, with February 2024 figures at $243,823 million compared to January 2024’s $252,076 million. However, they increased by 24.53% year-on-year, with February 2023 figures at $195,800 million. On a month-on-month basis, the readymade garments sector declined by 7.92%, with February 2024 figures at $307.000 million compared to January 2024’s $333.411 million. However, it also managed to post a yearly increase of 20.32%. The breakdown of textile group data further suggests that nearly all value addition sectors remain in the negative zone. There may be many reasons behind this, one being the traditional excuse of higher energy costs from stakeholders, which makes Pakistani products uncompetitive. Another reason is the lack of innovation or value addition in textile products. The majority of Pakistani textile entrepreneurs continue to sell the same old-fashioned products in global markets. These old products are price-competitive, with little margins. Many economists believe that if Pakistan does not find new markets with a focus on value addition as per global demand, it will be very tough for this sector to increase its share in the overall country’s export figures.
Source: Tribune
