GST field officers will now have to seek the approval of their zonal principal chief commissioners to initiate an investigation against any big industrial houses or major MNCs and levy duty on goods/services for the first time. The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for Central GST (CGST) officers. According to the guidelines, when a taxpayer is simultaneously being investigated by the state GST and DGGI officers on different subject matters, the principal commissioner will "consider the feasibility" of only one of the offices pursuing all the cases with respect to the taxpayer. The guidelines have also set a deadline for tax officers to conclude an investigation within one year of their initiation. CBIC further said that in initiating an investigation with respect to a listed company or PSU or seeking details from them, the CGST officers should issue "official letters instead of summons" to the designated officer of the entity, detailing the reasons for investigation and seeking submission of documents within a "reasonable time period". "In such a letter issued for seeking information/documents from the regular taxpayer, the reference can be to inquiry "with respect to" or "in connection with" that entity. Further, the letter/summons should disclose the specific nature of the inquiry being initiated/undertaken. The vague (or general) expressions such as that the officer is making inquiry in connection with "GST enquiry" or "evasion of GST" or "GST evasion" etc. must not be mentioned," CBIC said. It further said tax officers should not seek that information from the taxpayer, which is already available online on the GST portal. "Addressing letter/summons with context or content akin to a fishing inquiry is not acceptable," CBIC noted. The guidelines also said that each investigation must be initiated only after the approval of the principal commissioner, except in the specified four categories where the prior written approval of the zonal Principal Chief Commissioner shall be required if the investigation is to be initiated and action to be taken in a case. These four cases include matters of interpretation seeking to levy tax/duty on any sector/commodity/service for the first time; big industrial houses and major multinational corporations; sensitive matters or matters with national implications; or matters which are already before the GST Council.
Source: Business Standard
Synopsis PLI schemes across sectors attracted significant investments by December 2023, notably in pharma and solar industries. While some sectors thrived, others like IT hardware, auto, and textiles faced tepid interest, prompting a review for scheme improvements. Production-linked incentive (PLI) schemes for 14 sectors have attracted over Rs 1.06 lakh crore investments till December 2023 with pharma and solar modules accounting for nearly half of the total, according to government data. The response to the schemes was tepid in sectors like IT hardware, auto, and auto components, textiles, and ACC battery storage till December last year. The government in 2021 announced PLI schemes for 14 sectors such as telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore. According to the data, pharmaceuticals and drugs sector attracted Rs 25,813 crore till December last year, exceeding the expected investments of Rs 17,275 crore. The major beneficiary in this sector include Dr Reddy's Laboratories, Cipla, Glenmark Pharma, Biocon and Wockhardt Ltd. As regards the high efficiency solar PV modules, the total investment was Rs 22,904 crore as against the expected investment of Rs 1.10 lakh crore. In this sector, the PLI beneficiaries include Shirdi Sai Electricals, Reliance New Energy Solar Ltd, Adani Infrastructure and Tata Power Solar. The other PLI sectors which received healthy investments till December last year included bulk drugs (Rs 3,586 crore as against expected investments of Rs 3,939 crore), medical devices (Rs 864 crore as against expected investments of Rs 1,330 crore), food processing (Rs 7,350 crore as against expected investments of Rs 7,541 crore), and telecom (Rs 2,865 crore as against expected investments of Rs 4,014 crore). The lowest investment was received in IT hardware at Rs 270 crore against expected investments of Rs 2,517 crore. The other PLI sectors with tepid investments included auto and auto components (Rs 13,037 crore as against expected investments of Rs 67,690 crore), textiles (Rs 3,317 crore as against expected investments of Rs 19,798 crore), and ACC battery storage (Rs 3,236 crore as against expected investments of Rs 13,810 crore). According to an official, the government is reviewing and may look at tweaking the scheme for the sectors which are not performing well. The government has disbursed Rs 4,415 crore under the scheme for eight sectors, including electronics and pharma, till October this fiscal. A total of Rs 1,515 crore was disbursed in FY24 till October, while it was Rs 2,900 crore in 2022-23, when payments under the scheme commenced. The schemes aim to attract investments in key sectors and cutting-edge technology; ensure efficiency, bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.
Source: The Economic Times
Synopsis The new rule, Section 43B(h) of the Income Tax Act, introduced in the Finance Act 2023, is designed to make sure small businesses get paid on time. It allows companies to get tax breaks if they pay their small business suppliers within the time limits set by the MSMED (Micro, Small and Medium Enterprises Development) Act, 2006. Indian exporters have urged the government to exempt them from the 45-day payment rule for goods bought from micro and small enterprises (MSEs) as it will impact their businesses. In a letter to Prime Minister Narendra Modi, chiefs of major export promotion councils and federation of Indian export organisations have appealed to waive the export companies from section 43B(h) of the Income Tax law. The new rule, Section 43B(h) of the Income Tax Act, introduced in the Finance Act 2023, is designed to make sure small businesses get paid on time. It allows companies to get tax breaks if they pay their small business suppliers within the time limits set by the MSMED (Micro, Small and Medium Enterprises Development) Act, 2006. Especially, companies must pay within 45 days if there is an agreement, and within 15 days in the absence of such a pact. If they do not meet these deadlines, they can not deduct these expenses for tax purposes. "Our humble request is to consider the export community separately for domestic supplies as our challenges and situations are very different. Exporters who receive supplies from micro and small units have been affected as it has impacted their liquidity," according to the letter dated February 16. It said that for exports, payment is received with an average time lag of 120 days, although the RBI allows a nine-month period to realise export proceeds as sometimes it takes even longer. "The average lead time for an export consignment is about 90 days compared to a maximum of 14 days for domestic consignments within India. Buyers generally pay after receiving the goods, which, with an additional 30 days, makes it 120 days for exports," the exporting community argued. Exporters generally maintain larger inventories due to economic and demand factors in the destination market. This has increased further due to the current geopolitical uncertainties, according to the letter. "In view of this, we humbly request that in order to provide a level playing field to our exporters compared to exporters from other countries, this provision should not apply to exports. Therefore, the supply of goods from the micro and small units to exporting units, either for manufacturing of export products or for the further exports, should be exempted from this...," it added. If the government would not exempt them, the 45 days should be increased to 120 days, it noted. Exporters said the exporting community supports the move, but the government should consider giving exemptions at least for a few years. Sharing similar views, the economic think tank Global Trade Research Initiative (GTRI) said that Section 43B(h) is an effort on the part of the government to support MSE's financial stability and operational success, but the rule is likely to increase compliance efforts and financial strain for companies. GTRI founder Ajay Srivastava suggested exempting exporters from the provision altogether. He said the RBI allows nine months for realising money from foreign buyers. China allows long credit lines to its buyers. The current provision will immediately start hurting India's exports from small firms and weaken India's export story and targets. "GTRI requests a reconsideration of Section 43B(h), advocating for exemptions for exporters, a non-retrospective application from April 1, 2024, and an inclusive approach that encompasses medium enterprises. Let's ensure our tax policies promote growth, sustainability, and the global competitiveness of all Indian enterprises," Srivastava said. Micro-enterprise is a unit having investment in plant and machinery or equipment not exceeding Rs 10 million and turnover not exceeding Rs 50 million. A small enterprise is a unit having investment in plant and machinery or equipment not exceeding Rs 100 million and turnover not exceeding Rs 500 million. Units having investment in plant and machinery or equipment not exceeding Rs 500 million and turnover not exceeding Rs 2,500 million are medium enterprises.
Source : The Economic Times
Synopsis India-Uzbekistan strategic partnership thrives on mutual respect and shared values. The countries collaborate across various sectors like trade, investment, tourism, energy, and culture, contributing to stability and development in Central and South Asia. There is enormous potential and mutual interest to actively increase cooperation in the political, trade, economic, cultural and humanitarian dimensions between India and Uzbekistan. Ambassador Sardor Rustambaev, who previously led the diplomatic mission of Uzbekistan in France and Portugal and recently took over as the head of mission in India, spoke exclusively to ET.
Source: The Economic Times
Synopsis On Saturday, finance minister Nirmala Sitharaman said in an event at Mumbai that India will grow over 8 per cent in the January-March quarter of 2024. The country has become the 5th largest economy of the world and the Modi government has pledged to make it the 3rd largest by 2027. India will be the fastest growing economy among the G-20 nations in 2024. In the previous three quarters, India's economy expanded at 7.8 per cent in Q1, 7.6 per cent in Q2 and 8.4 per cent in Q3. On Saturday, finance minister Nirmala Sitharaman said in an event at Mumbai that India will grow over 8 per cent in the January-March quarter of 2024. The country has become the 5th largest economy of the world and the Modi government has pledged to make it the 3rd largest by 2027. The 8.4 per cent growth in Q3 has surpassed expectations, post that various institutions have upgraded their GDP growth forecast for India. The most recent upgrade came from Goldman Sachs, which has raised India's 2024 growth projections to 6.6 per cent, a 10 basis point improvement from its previous forecast. Earlier this month S&P, Morgan Stanley and Moody's too have revised India's growth projections upwards. S&P revises India's growth projections from 6.4 per cent to 6.8 per cent, Morgan Stanley from 6.1 per cent to 6.8 per cent and Moody's from 6.6 per cent to 8 per cent for the current fiscal. The growth projections were revised upward by rating agencies, reflecting both global and domestic optimism in the country's economy on the back of robust manufacturing activity and infrastructure spending. Moody expects India to be the fastest growing economy among the G-20 countries on the back of strong government expenditure and domestic consumption. The Modi government has raised capital expenditure from 2 per cent of GDP nine years ago to 3.8 per cent of GDP in the interim budget of 2024, that is about 4.5 times since 2014-15. The government has allocated Rs 11.11 lakh crore as capital expenditure in the interim budget on February 1, 2024. This is an increase of 11.1 per cent from the last budget. In the 2023 budget CAPEX was increased by a whopping 33 per cent to Rs 10 lakh crore. S&P says, "We have revised up 2024's growth forecast for India due to stronger than expected momentum at the start of the year. An improving global economic environment and an expected gradual easing of domestic financial conditions will support economic activity." The global analytics firm has also raised India's FY24 forecast upward to 7.3 per cent from 6.9 per cent projected earlier. On the inflation front, the analytics firm was more optimistic as it projected inflation to decline to 5.1 per cent in FY25 from 5.6 per cent earlier. India's inflation is likely to average at 5.7 per cent in FY24. However, the latest government forecast for the growth of the economy stands at 7.6 per cent in FY24. But growth figures of the last three quarters showed that the economy expanded at 8.2 per cent in the first three quarters of this fiscal and adding to this finance minister statement that India's GDP will grow by over 8 per cent will give rating agencies a thought to re-write India's growth story.
Source: The Economic Times
The last-quarter spurt would see India’s merchandise exports to be around $445 billion in the financial year 2023-24, about 1.3% lower than previous year’s level of $451 billion. The new year is challenging and growth from hereon will depend on inflation-interest rate dynamics in the key markets of the US and Europe, trade experts said,
“The merchandise exports in March are expected to be around $ 40 billion, as $ 5-6 billion will be added to the monthly shipments number. This should take the overall exports for this year to $440-445 billion,” director general and chief executive officer of Federation of Indian Export Organisations (FIEO) Ajay Sahai said. Before exports started looking up from October 2023 onwards, there was a 9% year-on-year decline in April-September. Services exports are up 6.7% on year till February to $314.8 billion. They are expected to end the year at around $345 billion. For 2023-24 overall exports are expected to touch $ 790 billion, up from $ 777.6 billion last year.
The decline of 1.3% in merchandise exports compares well with the 5% decline in world trade in goods in 2023 estimated by United Nations Conference on Trade and Development (UNCTAD). The revival in performance of good exports since December and 12% growth in February coupled with steady growth in services exports would keep the overall exports of the country in the positive zone in the financial year ending March 31. The next year appears challenging as there has been no let up in geopolitical frictions like the crisis in the Red Sea and Ukraine war that are directly impacting trade flows. The Red Sea crisis that has seen direct attacks on merchant shipping has indeed its sixth month while the Ukraine war has completed two years. The Red Sea crisis has impacted freight rates and duration of voyages. So far buyers have adjusted to higher costs but still the impact could come on commodities trade, Sahai said. The freight cost of commodities trade is much higher and margins are not enough to absorb any big fluctuations. The impact of the Red Sea may still come on commodities which may see trade shifting to geographies other than Asia, Northwest Africa and Europe that have been impacted most, he added. The Indian government is monitoring the situation arising out of the Red Sea and other geopolitical disruptions through a high-level inter-ministerial group of officials. As of now there is nothing much that can be done by the government on the Red Sea situation. “How inflation in the key market behaves and whether rate cuts would follow. If that (rate cuts) happen it would have a much more positive impact on exports in the coming year, Sahai said. In his remarks on Friday US Federal Reserve Chairman Jerome Powell indicated that interest rates would come down in 2024 but not before more confirmation comes on decline in inflation. This means the cuts will be in the later part of the year. Some expect the European Central Bank (ECB) to lead with the cuts, which can come as soon as June. The US Fed started raising rates in March 2022 and the 11 increases since then have taken the benchmark rates 23-year high of 5.4%. ECB rates are at 4.5%. The increase in rates has led to compression of demand from economies that account for 33% of India’s merchandise exports.
Source: Financial Express
The Central Board of Indirect Taxes and Customs (CBIC) has issued a detailed standard operating procedure, dated March 30, to be followed by CGST field officers while undertaking investigation against taxpayers. The guidelines, seen by FE, are similar to a circular issued to the Directorate General of GST Intelligence (DGGI) by the CBIC in February, and are aimed at improving ease of doing business and preventing harassment to taxpayers. The guidelines say that in initiating an investigation with respect to a listed company, PSU or government department, the practice to be adopted by the CGST field formation should be of initially addressing official letters, instead of summons, to the designated officer of such entity, and requesting the submission of the relevant specified details in a reasonable time. The letter/summons should disclose the specific nature of the inquiry being initiated. The vague (or general) expressions such as that the officer is making inquiry in connection with ‘GST inquiry’ or ‘evasion of GST’ or ‘GST evasion’, etc, must not be mentioned, said the CBIC circular. Official sources said the detailed SOP has been issued after representation made by several companies, including multinational companies (MNCs), to the finance ministry, where they had highlighted harassment by GST authorities. The SOP said each investigation must be initiated only after the approval of the principal commissioner (PC), except in some situations where the prior written approval of the zonal principal chief commissioner shall be required. The four situations are: “matters of interpretation seeking to levy tax/ duty on any sector/ commodity/ service for the first time, whether in Central Excise or GST”; “big industrial house and major multinational corporations”; “sensitive matters or matters with national implications”; “matters which are already before GST Council”. “In all of the above four categories of cases, the CGST field formation concerned should also collect details regarding the prevalent trade practices and nature of transactions carried out from the stakeholders,” said the CBIC guidelines. FE had reported earlier that the CBIC has directed officials in DGGI to follow a “bottom-up” approach while investigating tax liability of MNCs. In the guidelines issued recently, the indirect-tax board instructed officials at field formations to first question the “authorised person” in an MNC, responsible for ensuring tax compliance, instead of directly summoning the company’s chief executive officer (CEO), chief financial officer (CFO) or directors at the first instance. Experts suggest that the focus on adopting an approval-based strategy for investigations concerning major corporations and interpretative matters, coupled with a proactive approach to minimise unnecessary summons and ambiguous inquiries, represents a notable change in investigation and enforcement methodologies. Furthermore, the recognition and integration of common trade practices in investigations, along with the encouragement of consistency and the reduction of litigation through insights from GST Policy or Tax Policy Research Unit, demonstrate a progressive mindset. “The guidelines emphasise the importance of harmonious collaboration among jurisdictional officers, both at the central and state levels, to ensure a cohesive enforcement framework nationwide,” said Mahesh Jaising, Partner, Deloitte India. “Additionally, the introduction of a formal proactive grievance redressal mechanism for taxpayers signifies a notable step towards enhancing transparency and accountability in the enforcement process,” he said.
Source: Financial Express
India's GDP is projected to grow at over 7% during the next fiscal year (FY25), driven by the government's capital expenditure push and the robust growth witnessed across various macroeconomic indicators. But improving consumption, especially in rural areas, and addressing the pervasive income inequality remain significant challenges for the world’s fastest-growing major economy, said panellists at the Mint India Investment Summit 2024 on Friday. Participating in a discussion titled 'Rise of the Indian Spring', the panellists were bullish about India's growth prospects. "What we feel is that for FY24, we will be staying (at) around 7.6% (GDP growth) or slightly upwards of that. And with that kind of backdrop, we could be thinking in terms of around 7% or 8% for FY25," said Mehul Pandya, managing director and roup CEO of credit rating agency CareEdge. That said, rural demand has been hit by a deficient monsoon and is impacting overall growth, especially in terms of corporate capex cycle, he said. Pandya explained that if these aspects are taken care of, and if the prognosis of a fairly normal monsoon in FY25 comes to pass, it would help rural demand. Consequently, the 7% GDP growth estimate for FY25 could potentially be better, he said. "We are confident about the trajectory, which shall remain upwards," he emphasized. The Reserve Bank of India (RBI) has projected a 7% real GDP growth for FY25, up from its previous projection of 6.6%. RBI governor Shaktikanta Das had earlier this month said the Indian economy's GDP growth in FY24 could be "very close" to 8%. Chipping into the conversation about the Indian economy, particularly in terms of the challenges it faces, Devina Mehra, chairperson and managing director of wealth management firm First Global, said that as income inequity is increasing in the country, consumption is becoming a major concern area, with the bulk of the growth coming from government capex. "There was that inequality report recently, which of course showed that 65% of the wealth in the country is with the top 10%. About 20 years ago, it was 40% (40%wealth with top 10%). At that time, the next 40% also had 40% of the country's wealth. So now, it is like the top 10% has 65% and the next 40% has something like 22%, and the bottom 50% has something like 13%," Mehra said. "The top line is that the headlines look very good, but if you phase it out, there are the areas you need to work on as a country, and I hope we do work on it and have sustainable growth," she emphasized. However, amid the challenges, there are a lot of opportunities for investors in an economy like India, which has been registering robust economic growth, was the consensus among the panellists. "We find several interesting investment opportunities in India. One is infrastructure. We are also getting very interested in de-carbonisation. Third is manufacturing," said Abhishek Poddar, India country head, Macquarie Group, and managing director , Macquarie Asset Management Real Assets. Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers highlighted three megatrends India is currently witnessing: the growing profitability of SMEs in the last three years, high economic growth in peninsular India, and the paradigm of urban women having more money in their accounts than men. "Small businesses are earning bumper profits. We haven't seen this before in India for a long time... The second transition is in coastal India. Peninsular India has seen economic growth take off. So many of the states in southern India, many of the cities in southern India, are seeing their GDP growth doubling every six to seven years," Mukherjea said. "These are the fastest-growing cities and the fastest-growing regions in the world." Adding to the conversation was Rajiv Dhar, executive director of the National Investment and Infrastructure Fund (NIIF), who said that India is on the right track on the fiscal and regulatory policies front, especially with regards to clean infrastructure. "On the infrastructure side, the future is bright because the regulatory framework, specifically with regards to some of the large segments of infrastructure, whether it is roads, or transportation, or energy, is quite established. There are good business models where international investors have seen a good track record with their investment and investment returns," said Dhar. Further highlighting the emerging opportunities in India, Dhar said, "I think there's huge scope with regards to transforming companies to decarbonise... I think there are four emerging markets within India which are coming up. These are energy transition, industrial de-carbonisation, sustainable living, and climate technologies." Overall, while the panellists agreed that the opportunities facing India's economy were immense, stakeholders in the country's growth needed to make collective efforts to ensure that the country stays on course to achieve the growth it envisions.
Source : Live Mint
Indian Prime Minister Narendra Modi is likely to prioritise completion of free trade deals with Britain and Oman in the first 100 days of the next government if he wins upcoming elections as opinion polls predict, two government sources said. Modi has asked Indian ministries to set annual goals for the next five years that will fit into a 100-day action plan as he chalks out a strategy to fuel further growth in Asia's thirdlargest economy. Among its goals for the 100-day plan, the trade ministry aims to feature the pacts with Britain and Oman, as talks on both deals are in their final stages, said the sources, who have direct knowledge of the discussions. They sought anonymity as details of the plan are private. This month Modi identified integrating India into world trade as a key priority area in talks with senior government officials, according to a document seen by Reuters. Some of the objectives will be discussed on May 1, when India will be in the middle of its seven-phase election, set to start on April 19 with vote-counting due on June 4, at which Modi will be seeking a rare third term. The trade ministry and Modi's office, which will make a final decision on the priorities, did not respond to a request for comment. A spokesperson for Britain's department for business and trade said the two countries were "continuing to work towards an ambitious trade deal". The spokesperson added, "Whilst we don't comment on the details of live negotiations, we are clear that we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy." Ahead of India's elections, both nations this month put on hold their two-year long negotiations without a deal, while reaffirming their commitment to a new pact aimed at doubling their trade by 2030. Britain also holds elections this year. Reuters could not immediately contact an Oman official. The trade ministers of India and Oman met in December and said they had asked their negotiators to wrap up talks on a comprehensive pact so as to hasten signing of a deal. Trade between the countries has more than doubled in two years to $12.39 billion in the last fiscal year.
Source: Money control
Readymade garment entrepreneurs are concerned about potential unrest as they encounter difficulties in clearing wages and bonuses before the upcoming Eid-ul-Fitr. This is because the government has not released funds, despite their pending cash incentives, amounting to nearly Tk4,000 crore, against exports. The leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) met on Sunday with the Prime Minister's Principal Secretary Mohammad Tofazzel Hossain Miah regarding the issue and requested that an initiative be taken to release the funds immediately. According to sources, the newly elected President of BGMEA SM Mannan Kochi, Director Rajiv Chowdhury, and BKMEA Executive President Mohammad Hatem were present at the meeting. After the meeting, Mohammad Hatem told The Business Standard, "The exporters were entitled to Tk6,000 crore in cash incentives from the government. Of this, Tk2,000 crore was released last Thursday." "We have requested the authorities release the remaining Tk4,000 crore before Eid," he said, adding that "there is a lot of trouble in various factories right now. It will be difficult for many factories to pay wages and allowances to their workers if the funds are not received before Eid." 'In that case, there may be labour unrest," he expressed his concerns. However, the source of the meeting said no specific assurance has been received from the principal secretary regarding the release of the fund before Eid. BGMEA Director Rajiv Chowdhury told TBS, "We have brought up our existing issues with him. He told us that he would talk to the government authorities concerned regarding the matter." Last week, the Industrial Police released a list of factories that may have problems paying wages and bonuses. According to the list, at least 416 factories may encounter issues with salaries and bonuses before Eid. According to that list, the Bangladesh Textile Mill Association (BTMA) has 29 member factories, in addition to 171 member factories of BGMEA and 71 member factories of BKMEA. The rest of the factories belong to other sectors. Meanwhile, there have been reports of labour unrest in some factories over salaries and bonuses in different parts of the country. Rajiv Chowdhury said, "As you already know, 416 factories are in trouble over bonus payments. If the fund is not received before Eid, there is a risk of unrest in the factories." According to sources in the finance ministry, they are unable to release the cash incentives, mainly due to a shortage of funds. A senior official of the division concerned at the ministry told TBS on condition of anonymity, "Not only the RMG sector or exporters, but other sectors also have pending funds. Tk30,000 crore of the power sector is due. That is why we have to ration the release of money." He added, "If we receive instructions from the division concerned, then we will implement them accordingly." Currently, there are about 3,000 active export-oriented garment factories in the country. The new wages for this sector have been implemented since last December. Garment owners claim that despite the new cost of production, most foreign buyers have not increased the price of garment products.
Source: TBS News
DHAKA, March 31, 2024 (BSS) - Senior Secretary of the Industries Ministry Zakia Sultana today said Jamdani, the most artistic textile of Bangladeshi weavers, will be branded internationally as its alternative is now rare in the contemporary world. "Jamdani is unparallel due to its quality weaving technique and beautiful design and now it is time to branding the fabric across the world as an alternative of Muslin," she said. The Industries Secretary came up with this remark while inaugurating 'Jamdani Fair-2024', jointly organised by Bangladesh Small and Cottage Industries Corporation (BSCIC) and Bangladesh National Museum at Poet Sufia Kamal auditorium of National Museum here this morning. To this end, she said necessary initiatives have already been taken on behalfof the concerned ministry. Of the initiatives include imparting training to the entrepreneurs engaged with this industry, manufacturing of international standard packing, providing incentives for export and arrangement of showcasing at all Bangladeshi foreign missions. As the fabrics are very much comfortable, so it is very much preferred to the foreigners across the world, Zakia Sultana said, adding: "A training programme has began for the young weavers on March 11, this year as they are not expert at all about the design of the saris." In 2013, the traditional art of weaving jamdani was declared a UNESCO Intangible Cultural Heritage of Humanity.Though mostly used for saris, Jamdani is also used for scarves and handkerchiefs. Jamdani is believed to be a fusion of the ancient cloth-making techniques of Bengal (possibly 2,000 years old) with the muslins produced by Bengali Muslims since the 14th century. Jamdani is the most expensive product of Dhaka looms since it requires the most lengthy and dedicated work. Chaired by BISCIC's Chairman Sanjay Kumar Bhowmik, the programme was also attended, among others, by Cultural Secretary Khalil Ahmed and Director General (DG) of the Bangladesh National Museum M Kamruzzaman.
Source: BSS News
In alignment with global fashion trends, which are increasingly favoring manmade fiberbased products, Bangladesh's export-oriented garment industry is undergoing a similar transformation. As a crucial backward linkage industry, the spinning sector of Bangladesh must adapt to support the textile and garment industry with the required pace and quality. Traditionally, most spinning mills in Bangladesh were equipped with machinery designed for 100 percent cotton fiber. However, those mills successfully catering to customer demands have undergone significant transformations. They now possess the capability to produce not only 100 percent cotton yarn but also blended yarns to meet diverse customer needs. To remain competitive in the evolving market, spinning mills in Bangladesh must prioritize research and development. Diversifying product ranges to include synthetic fiber-based blended yarn alongside cotton yarn is imperative. Establishing in-house research and development teams dedicated to product diversification is essential for staying ahead in the industry. Adapting machinery for producing synthetic fiber-based blended yarn requires adjustments in blow room, carding, and ring machines. Continuous research and development efforts are necessary to ensure consistent quality that meets customer demands. Recent data indicates a rising demand for polyester staple fiber (PSF) in the local spinning industry. Given the global shift toward manmade textile fibers, this demand is expected to continue growing. Investors should consider opportunities in polyester spinning industries, focusing on producing polyester-oriented yarn (POY), draw textured yarn (DTY), and partially oriented yarn (POY) directly from imported materials like monoethylene glycol (MEG) and purified terephthalic acid (PTA). To support the smooth operation of these spinning mills, conducive government policies and efficient local professionals are essential. Universities should revise their curricula to produce professionals equipped to handle the challenges and demands of manmade fiberbased spinning industries effectively. In addition to adapting to new materials, spinning mills face challenges in machine maintenance, production efficiency optimization, and energy consumption. Embracing innovation and sourcing energy-efficient machinery are crucial steps to overcome these challenges. Government policies should facilitate access to spare parts in a businessfriendly manner to enhance competitiveness. It is imperative for spinning mills to embrace this transformation to remain relevant and competitive in the global market. This is a pivotal moment for stakeholders to strategize and take decisive steps towards sustainable growth and success.
Source : Textile Today
