The textiles industry is expected see a rebound in revenues in the next financial year after being hit by volatile cotton prices and muted export demand in the previous two financial years. The industry is set to close this financial year with lower revenue as the nearly 25 per cent correction in the cotton prices and subdued readymade garment exports tone down realisations. Exports, which usually account for a fourth of the overall market, are currently impacted by slowdown in key markets, although domestic demand continues to grow at a steady rate. That is of concern for small and medium enterprises (SMEs), which make up close to 75 per cent of the textile value chain. In the next financial year, the growth is expected to revive on the back of continued domestic demand, stability in cotton prices and export recovery.
The cotton prices are likely to remain stable as cotton consumption continues to be lower than production, supporting the cost competitiveness of the cotton textile value chain. The volume growth for cotton spinners is likely to normalise after an 80-85 per cent growth this year on a low base. For RMG players, volumes are expected to inch up in line with a gradual improvement in major export destinations such as the US, EU, and UK. The key export-oriented RMG clusters such as Tirupur, Bengaluru and Mumbai are expected to witness a slower revenue growth of 6-7 per cent in the next financial year. Clusters such as Kolkata, Kanchipuram and Ludhiana have a higher dependence on the domestic market and are, therefore, likely to outperform the export-centric clusters. After a contraction in the current financial year, the profitability of players is expected to improve because of stable cotton prices and lower inventory losses. Over the medium term, the free trade agreements with the UK and the setting up of textile parks under the PM MITRA scheme will help improve India’s competitiveness in the RMG space. This will be complemented by the Production Linked Incentive scheme, which will give a boost to domestic manufacturing.
Source: Business Standard
Synopsis The proposed intelligence unit would study the impact of schemes launched by the government aimed at lifting the share of manufacturing in GDP to 25% by 2047 from about 17% currently. In addition to Production Linked Incentive (PLI) schemes worth ₹1.97 lakh crore, the government started the Make in India initiative and the Phased Manufacturing Programme (PMP) to boost local production and encourage export substitution. The Centre will soon assess India's manufacturing prowess through a centralised intelligence unit or a knowledge storehouse and develop key performance indicators on metrics such as value-added, export performance, technological prowess, supply chain effectiveness, labour productivity and access to global market. The exercise is aimed at significantly ramping up the manufacturing sector and making it globally competitive. "The idea is to conduct a comprehensive analysis of the domestic market to identify products with high demand and growth potential and a value chain analysis to understand products which can add value," an official said. The proposed intelligence unit would study the impact of schemes launched by the government aimed at lifting the share of manufacturing in GDP to 25% by 2047 from about 17% currently. In addition to Production Linked Incentive (PLI) schemes worth ₹1.97 lakh crore, the government started the Make in India initiative and the Phased Manufacturing Programme (PMP) to boost local production and encourage export substitution. Unitto study top 10 nations As part of the exercise, the Department for Promotion of Industry and Internal Trade (DPIIT) will identify champion sectors, develop a risk register with anticipated risks and responses, and assess and monitor the impact assessment of PLI Schemes. A central information repository for PLI schemes through periodic consultations and information gathering exercises with stakeholders would be developed. The intelligence unit will study the top ten countries to understand their strategies and contribution to global manufacturing output. It would support the Steering Committee for Advancing Local Value-Add and Exports Research Analysis, Programme Implementation, and Data Intelligence Unit. (SCALE RAPiD) which comprises representatives from various industry bodies and officials from commerce and industry, and other ministries. The exercise also entails evaluating India’s export potential by identifying products with global demand and giving inputs during foreign trade negotiations with the aim of reducing trade barriers. The intelligence unit will compare global best practices to assess feasibility of implementation and impact of recommendations provided by the SCALE committee. The department will hire a consultancy agency for the exercise. The official cited above said the plan also includes evaluating the impact of policies and schemes aimed at enhancing manufacturing competitiveness, and identifying areas where reforms can be undertaken to lower regulatory burden for promoting ease of doing business. Assessment of incentive schemes such as tax breaks and access to credit to attract investments in the chosen sectors are also likely to be considered.
Source: The Economic Times
Synopsis Commerce ministry's SCOMET policy allows bulk licences for telecommunication and info security items. DGFT outlines the detailed application procedure, including online submission through SCOMET portal with specified information and technologies. New Delhi, The commerce ministry on Wednesday notified a policy for general authorisation for the export of certain telecommunication-related and information security-related items under a SCOMET category to grant one-time bulk licences. A detailed procedure for these authorisations has also been notified by the Directorate General of Foreign Trade (DGFT). Special chemicals, organisms, materials, equipment and technologies (SCOMET) items are dual-use goods. "The policy for general authorisation for export of telecommunication-related items under SCOMET category...and export of information security items under SCOMET category...to grant one-time bulk licences for these items has been notified," the DGFT said in a notification. The applicant exporter will have to submit an application for getting a onetime license through the online SCOMET portal and attach the information in the prescribed format.
Source: The Economic Times
Synopsis India's trade minister, Piyush Goyal, expressed openness to joining trading blocs with China, provided the country's economy is transparent, open, and complies with World Trade Organisation rules. India is open to being a part of trading blocs which include China if Beijing ensures its economy is open, transparent, and complies with the rules of the World Trade Organisation, India's trade minister Piyush Goyal said at a media event on Thursday.
Source: The Economic Times
The South India Textiles Research Association (SITRA) and the TN Textiles Department have jointly commenced training program for workers in textile units here on Wednesday. According to a press release from the Deputy Director (Textiles) Coimbatore, the TN government had proposed to impart skill based training to the workers employed in textile, spinning, weaving, knitting, garment and among other manufacturing facilities in the State. The objective of giving training was that it would give them ample knowledge on the technology and about the latest development in the textile sector. The beneficiaries including those who are unemployed would not only get guaranteed placement, but also enhanced pay would be assured for existing workers up to ₹8000 per month from their present salaries. The State government had planned to impart skill based training to 8,950 workers in the next five years.The TN Skill Development Corporation, SITRA and the Textiles Department are jointly giving training by involving experts as resource persons. As a first step, MoU was signed with Textile units and LS Mills in Theni had been approved as one of the training centres. On Wednesday, 20 persons joined the training program, which would conclude on May 20. The inaugural session was attended by Theni LS Mills General Manager Anandan, DGM R P Nivas, Regional Deputy Director (Textiles) Raghavan and SITRA scientific officer Vaithianathan, the release added.
Source: The Hindu
Synopsis "Next reforms have to be done at the level of the states and we have to persuade half a dozen states to adopt some of these reforms," Panagariya said at the Times Now Summit themed 'India Unstoppable'. India's economy grew at 8.4% in the third quarter of 2023-24, exceeding the expectations of analysts and economists. NEW DELHI: India can lift its economic growth to close to 9%, from the current 7% or so, in the next five years by undertaking pending reforms in agriculture, urbanisation and education, Arvind Panagariya, chairman of the 16th Finance Commission, said on Wednesday. He said states must be persuaded to take up these reforms as India cannot grow faster if all states are not performing well. "Next reforms have to be done at the level of the states and we have to persuade half a dozen states to adopt some of these reforms," Panagariya said at the Times Now Summit themed 'India Unstoppable. India's economy grew at 8.4% in the third quarter of 2023-24, exceeding the expectations of analysts and economists. "Certainly, with a few more reforms in the next five years, we can realistically push it to close to 9%, certainly somewhere at 8-9%. And that can be sustained easily for a couple of decades," Panagariya said. Dismissing the scepticism about the recent GDP numbers, he said no one can question the integrity of the methodology. "If you are mystified, then first you have to check (whether) mist is on your own glasses," Panagariya said, taking a dig at former chief economic adviser Arvind Subramanian, who recently remarked that he was "mystified" by the GDP numbers.
Source: The Economic Times
The office of the US trade representative (USTR) and US Customs and Border Protection (CBP) will launch a Trade Capacity Building Programme to advance secure trade in textiles and apparel between the United States and Guatemala, vice president Kamala Harris recently announced. She welcomed President Bernardo Arevalo of Guatemala to the White House on March 25 and discussed bilateral issues. The vice president announced an additional $170 million for development, economic, health and security assistance to Guatemala’s subject to congressional notification. The Trade Capacity Building programme will encourage engagement, including with existing government-to-industry stakeholder partnerships such as CBP’s Customs Trade Partnership Against Terrorism Programme and the Superintendence of Tax Administration of Guatemala’s Authorised Economic Operator Programme.
The Commerce Law Development Programme (CLDP) will support legal and regulatory reforms to facilitate new infrastructure and public-private partnerships in the Latin American country, Harris announced. These reforms will also promote workers’ rights. CLDP will provide technical assistance to improve Guatemala’s proposed port authority law, which would counter extortion and the use of maritime ports and airports by organised criminal organisations. The Women’s Economic Empowerment Legal Reform Fund Project in Guatemala will support key congressional, governmental and civil society partners to advance legislation and policy that reduces barriers to women competing in the workforce, while enhancing protection of women’s access and rights in the workplace, she said. A US investment facilitation team will visit Guatemala in the next six months to support clean energy and infrastructure development, facilitate private sector operations and promote sustainable economic development, a White House factsheet said.
Source : Inside Trade
LAHORE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) have called for a revision of the Textile Policy. They are urging the government to introduce a separate five-year ‘Apparel Policy’, detaching the garment sector from textiles and granting it independent status.
This proposal comes in light of the expiration of the GSP Plus status and the emergence of new opportunities, particularly following the forthcoming report by the U.S International Trade Commission (ITC) on the competitiveness of Pakistan’s apparel industry, scheduled for submission at the end of August this year. Mubashar Naseer Butt, central chairman of PRGMEA, has commended the government’s prompt attention to the U.S ITC report. He emphasized the significance of this move, noting the potential for Pakistan’s apparel industry to boost exports, especially considering the U.S’s interest in apparel imports from Pakistan. Butt stressed the need to strengthen the sector’s identity, aligning it with global standards, as evident in the EU’s singular demand for apparel products over raw materials or fabrics. During a recent hearing, the U.S International Trade Commission questioned why Pakistan primarily exports raw materials instead of focusing on value addition. Mubashar Butt highlighted Pakistan’s robust textile industry, encompassing a comprehensive industrial chain from raw cotton to garment manufacturing. He expressed gratitude for Pakistan’s cohesive effort in presenting a compelling case before the U.S International Trade Commission, stressing its pivotal role in paving the way for enhanced apparel exports. He advocated for the launch of an independent apparel policy, distinct from the textile policy, for the next five years. He proposed the establishment of a federal-level Apparel Council to formulate sector-specific policies, essential for sustaining textile exports. He emphasized the divergent challenges faced by the garment sector, underscoring its labor-intensive nature and significant employment generation capacity compared to the textile industry. Highlighting the garment sector’s potential to create jobs with minimal investment and energy consumption, Butt pointed out the growing market shares of countries like Vietnam, Cambodia, and Indonesia. He emphasized the need to fully exploit the potential of Pakistan’s apparel exports, particularly to the U.S, which constitutes the largest export destination for Pakistani apparel products. During a public hearing by the ITC on the export competitiveness of South Asian apparel industries in the U.S market, Pakistani representatives underscored the strategic importance of showcasing the strength and potential of Pakistan’s apparel industry. Sajid Saleem Minhas, PRGMEA EC member and former chairman, emphasized the imperative of securing duty-free access to the U.S market and urged government support to enhance the competitiveness of the value-added textile industry. Minhas stressed the establishment of an ‘Apparel Council/Committee’, comprising both public and private sector representatives, to oversee sector activities and policy formulation aimed at boosting exports. He emphasized the need to focus on man-made fiber capacity and encourage investment in this sector, alongside fostering young entrepreneurship to bolster national exports. In conclusion, Minhas highlighted the opportunity presented by the forthcoming ITC report and urged the government to engage in discussions with the U.S for a potential tariff-free agreement on apparel exports from Pakistan.
Source : Brecorder
As a bridge for Finland to intensify cooperation with ASEAN and for Vietnam to expand comprehensive cooperation with the EU, the Vietnam-Finland friendship and multifaceted relations would be further advanced. Chairman of the National Assembly Vuong Dinh Hue made the remarks at a meeting today [March 25] with the Speaker of the Finnish Parliament Jussie Halla-aho, who is currently on a visit to Vietnam from March 24-26. Emphasizing that this visit by the Speaker of the Finnish Parliament is the first in 14 years, Hue expressed confidence that this visit will be a significant milestone in the bilateral relationship. Speaker Jussie Halla-aho was delighted at paying an official visit to Vietnam, noting that in 2023, when the two countries commemorated 50 years of diplomatic relations, Finland welcomed many high-level delegations from Vietnam. Speaker Jussi Halla-aho expressed his pleasure that the two countries have shifted from development aid to development cooperation, promoting mutually beneficial trade cooperation. He viewed this as a positive development in bilateral relations and emphasized the importance of Vietnam as one of Finland's key trading partners in ASEAN. Over the past 50 years, bilateral trade between the two countries has seen significant growth. Speaker Jussi Halla-aho noted that the Finnish Parliament has approved the European Union-Vietnam Investment Protection Agreement (EVIPA). Additionally, Finland has an investment protection agreement with Vietnam. He highlighted the potential for further cooperation, particularly in the energy, information technology, and education sectors. Hue affirmed that Vietnam values the development of its traditional friendship and comprehensive cooperation with Finland. He expressed his satisfaction with the positive development of bilateral cooperation, especially in political-diplomatic, economic-trade, development cooperation, and education-training fields. He praised the effective cooperation and mutual support between the two countries in multilateral forums, especially at the United Nations. He thanked Finland for its continued support in strengthening Vietnam's comprehensive cooperation with the European Union (EU). Vietnam is willing to act as a bridge for Finland to strengthen its relations with ASEAN. He noted that relevant agencies of both countries will closely coordinate to maximize the benefits of the EVFTA agreement and enhance trade and investment connections. According to Hue, the bilateral trade volume reached nearly US$380 million in 2023, which is modest compared to its potential. He reiterated Vietnam's willingness to facilitate and promote trade cooperation and hoped that Finland would continue to create favorable conditions for Vietnam's key exports to the Finnish market (iron and steel products, machinery, transportation equipment and parts, textiles, footwear, and related materials). Hue thanked the Finnish Parliament for approving the EVIPA and hoped that Finland would continue to influence other EU parliaments to expedite the ratification of this agreement. According to Hue, the EVIPA will create new cooperation opportunities for the business communities of both countries, especially in potential areas such as green economy, digital transformation, high technology, telecommunications, renewable energy, environment, water treatment, forestry technology, information technology-communication, smart cities. He also called on Finland to promote the lifting of the European Commission (EC)'s yellow card on Vietnamese seafood exports, thereby supporting Vietnam's socio-economic development, while providing European consumers with access to quality seafood at competitive prices.Vietnam has enacted a series of laws, including those on controlling and combating illegal fishing, for Vietnam's practical interests, for sustainable development, and to fulfill commitments made at COP26, Hue said.
Vietnam a priority in Finland’s Talent Promotion program
Recognizing that the number of Vietnamese students in Finland is considerable and represents an important human resource for Vietnam's development goals, Hue hoped Finland would further promote cooperation between the two countries in this field, help train Vietnamese human resources in innovation and entrepreneurship, support experts in primary education programs, and cooperation in the field of labor (information technology, healthcare, education, agriculture, among others). Agreeing with Hue on promoting educational cooperation between the two countries, the Speaker of the Finnish Parliament stated that Vietnam has been chosen as a priority country in Finland's talent promotion program. With over 2,000 Vietnamese students studying in Finland, the largest number of foreign students in Finland, and over 10,000 Vietnamese residing in Finland, the community is highly valued for their diligence, hard work, and sincerity. The Speaker of the Finnish Parliament expressed the wish for cooperation between the University of Law in Hanoi and the University of Helsinki, which Finland hopes will soon be implemented.During the talks, the two sides exchanged views on international and regional issues of mutual interest. Hue stated that the world situation is complex and unpredictable but emphasized that peace and stability remain the prevailing trends. Vietnam pursues an independent, self-reliant, diversified, and multilateral foreign policy, being a reliable partner committed to peace, cooperation, and development.
Promoting green growth
At the meeting with Prime Minister Pham Minh Chinh on the same day, both sides welcomed the remarkable development in bilateral trade and investment cooperation; however, it has not yet fully realized its potential. Therefore, the two countries will continue to facilitate and encourage the connection of enterprises, and investors, and maximize the benefits of the EU-Vietnam Free Trade Agreement (EVFTA), especially in areas where both sides have demand and strengths such as high technology, green development, environment, agriculture, forestry, and information technology. Regarding development cooperation, Prime Minister Chinh and Speaker Jussi Halla-aho agreed that both sides will continue to closely coordinate and effectively implement the Framework Agreement between the two Governments on projects financed under Finland's Public Investment Program, focusing on priorities to enhance competitiveness for the private sector, develop a knowledge-based economy, address challenges related to sustainable development and climate change, and promote sustainable development in the Mekong Delta region. Both sides also discussed the situation in the East Sea. Chinh reiterated Vietnam's consistent stance on advocating for the peaceful settlement of disputes, respecting international law, including the United Nations Convention on the Law of the Sea (UNCLOS) 1982, ensuring freedom of navigation and overflight, and promoting maritime security and safety. Finland affirmed its support for Vietnam's position and stressed the importance of upholding the principles of international law in maintaining peace, stability, and security in the region. Both sides agreed to continue promoting dialogue, cooperation, and confidence-building measures to peacefully resolve disputes and contribute to regional peace, stability, and development.
Source: Honoi Times
Turkish conglomerate Dogus Group and the Egyptian Group for Multipurpose Terminals (EGMPT) recently signed a memorandum of understanding (MoU) to set up a Turkish industrial zone in Egypt’s Jarjoub, which hosts a port. The $7-billion project includes a commercial port, free and logistical zones, railway connectivity, a cargo terminal, a passenger terminal, a yacht marina and an industrial zone. Feasibility studies will be conducted for six months followed by project implementation procedures and obtaining the requisite approvals, Egyptian newspapers reported. Operations for the project are expected to commence in early 2026. Egypt’s Central Agency for Public Mobilisation and Statistics (CAPMAS) reported in February a 7.1-per cent drop in Turkish investments in Egypt, with a recorded value of $167.2 million during fiscal 2022-2023 compared to $179.9 million in fiscal 2021-22. The bilateral trade volume declined by 15.7 per cent year on year, reaching $6.6 billion last year, CAPMAS figures show.
Source: Fibre2fashion
Export markets like the European Union favor garments from countries that source their own textiles internally, to comply with Rules of Origin (ROO) regulations, exporters said. As such, the government needs to help establish a commercial-scale textile factory to help supply wearables exporters, especially those shipping to the EU, according to Robert Young, trustee for the textile, yarn, and fabric sectors of the Philippine Exporters Confederation, Inc. (Philexport). He said such a factory would be vital if the industry is to achieve its revenue target for the year of $1 billion. “Just one will be enough; we have to quickly start something so that these foreign investors will follow suit,” he said. “Garments, once they’re there, can be a lifesaver to any economy, just like in Bangladesh, Vietnam, India, Laos, and Cambodia.” Mr. Young, who is also the president of the Foreign Buyers Association of the Philippines, said that Philippine garments exported to the EU are subjected to a 12% or higher duty due to the strict ROO requirements. “They (EU) prefer that the fabric we use is sourced from the Philippines. So, this is one way of saying the Philippines has to produce its own fabric,” he said.“Which, as everybody knows, is not possible because we do not have the textile industry in the Philippines right now to be used for these products for exports, and therefore, we have to import,” he added. He said Philippine garments that enter the EU market are duty-free, as provided by the Generalized Scheme of Preferences Plus (GSP+). However, because of the ROO regime, Philippine garments that use imported fabric do not qualify for zero duty. “Building a pilot factory to produce our own fabric or textile is thus imperative, especially as the revival of negotiations for the country’s bilateral free trade agreement (FTA) with the EU is expected to also prescribe the same ROO on textile usage for exported garments,” he added. Last week, the EU and the Philippines announced the resumption of negotiations for an FTA after being halted in 2017 due to concerns raised by the EU over the policies of the former Philippine government. The FTA is expected to increase bilateral trade by 6 billion euros. The Philippines participates in the EU’s GSP+, a special incentive arrangement for low- and lower-middle-income countries. It charges zero duty on 6,274 Philippine-made products. Mr. Young said that due to the ROO, the industry only expects to hit 80% of its $1 billion revenue target for the year.
Source: BWorld Online
LAHORE, (UrduPoint / Pakistan Point News - 27th Mar, 2024) The International Business Council (IBC) Kyrgyzstan wanted the Pakistani investors to establish a pharmaceutical plant and textile unit in its burgeoning market. IBC Director Askar Sydykov stated this while talking to a Pakistan trade delegation, led by Meher Kashif Younis, Kyrgyz honorary consul, visiting Kyrgyzstan to work out modalities for expanding volume of bilateral trade between the two countries, according to honorary consul's spokesman here on Wednesday. The IBC director said that Kyrgyz offers a promising landscape for investment, marked by a growing demand for pharmaceuticals and textiles, creating a conducive environment for profitable ventures. With the global pharmaceutical industry experiencing steady growth, he added, Kyrgyzstan stands out as a lucrative destination for investors looking to capitalize on this expanding market. By setting up a pharmaceutical plant, Pakistani investors could not only cater to the Kyrgyz domestic demand but also explore opportunities for export to neighbouring countries in Central Asia, he added. Askar Sydykov said the benefits of investing in Kyrgyzstan extend beyond market demand. The country boasts a favorable business climate, characterised by liberal investment policies, tax incentives, and government support for foreign investors, he said, asserting that Kyrgyzstan also offers competitive labor costs and abundant natural resources, further enhancing the quantum of investment in the country. Collaborating with the IBC ensures seamless entry into the market, with access to valuable insights, networking opportunities, and regulatory support. IBC is committed to facilitating the success of investors and fostering mutually beneficial partnerships between Kyrgyzstan and Pakistan, he added. He said the textile industry in Kyrgyzstan is poised for development, fuelled by increasing demand for quality textiles both domestically and internationally. By establishing a textile unit, Pakistani investors can tap into this demand and leverage Kyrgyzstan's strategic location as a gateway to the Eurasian Economic Union and other regional markets. We look forward to welcoming Pakistani investors and forging fruitful collaborations that drive economic growth and prosperity for two countries, he concluded. Dr Shahid Hassan, President of Kyrgyzstan Trade House in Pakistan, was also present as part of the delegation.
Source: Urdu Point
