Senior officials of India and the five-nation Eurasian Economic Union (EEU) bloc held detailed discussions last month to formally start negotiations for a free trade agreement to boost economic ties, an official said. The five members of the EEU are Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. The official said two feasibility studies have already been conducted on the proposed agreement. In such agreements, two or more trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. These agreements provide greater market access to Indian goods and services. "Senior officers of both sides have met on March 28 here and have discussed formally starting talks for the FTA," the official said. An industry expert said domestic exporters from sectors like engineering goods, electronics and agriculture can get an edge from the agreement. Russia is the top trading partner of India in the bloc, with bilateral trade worth $49.4 billion in FY23. India's exports to Russia stood at $1.14 billion in 2022-23, while imports were $46.2 billion due to an increase in crude oil imports. The bilateral trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan was $134.26 million, $111.81 million, $641.62 million, and $56.56 million, respectively, in 2022-23. A similar agreement was signed by India and the European Free Trade Association (EFTA). The members of this bloc are Iceland, Liechtenstein, Norway, and Switzerland.
Source: Business Standard
Union Minister Piyush Goyal has underscored that protecting the interests of farmers, fishermen, micro, small and medium enterprises (MSMEs), and domestic manufacturing will be non-negotiable in any free trade agreement (FTA) that India inks. Speaking at the Idea Exchange event organised by The Indian Express, Goyal said the Modi government negotiates FTAs very cautiously and from a position of strength, given India's USD 3.5 trillion economy that is projected to swell to USD 35 trillion. "For FTAs, one has to do crystal-gazing into the future and see what is good for the country over the next 20, 30 or 50 years," the minister stated. "The country's farmers, fishermen, MSMEs have to be protected, domestic manufacturing has to have a level-playing field, and there has to be transparency on both sides in how countries operate," he added. Goyal maintained that India will sign FTAs strictly on its own terms after extensive stakeholder consultations. He ruled out any rushed negotiations, saying "unless we get that (a fair, equitable and balanced deal) on our terms, we don't rush into closing any FTA negotiation." The statement from the minister comes in the wake of the recent pause in FTA talks between India and the UK, which are now set to resume after the conclusion of the Lok Sabha elections. Goyal chose not to divulge specific reasons behind the hold, terming it a confidential matter. However, he emphasised the need to balance multiple significant issues from a larger perspective, including preventing entry of entities from "unfriendly" nations through the backdoor under such trade pacts. "We are a potential superpower and given our growth trajectory, nobody in the world has any doubt this is the country to trade with. So we have to negotiate hard and get the best deal for India," Goyal asserted. The minister also appreciated efforts from the UK side, saying "They put an extra foot forward as did we. But there will always be reasons why some things don't close and probably the right time for this has not come." While Goyal did not disclose granular details, his strong remarks made it clear that safeguarding the interests of Indian farmers, MSMEs, and manufacturers will be paramount in any FTA that the government pursues.
Source: KNN India
The rupee witnessed range-bound trading in initial deals against the US dollar on Wednesday, as the support from positive macroeconomic data was negated by elevated crude oil prices. Forex traders said a negative trend in domestic equities and the overall strength of the American currency in the overseas market weighed on investor sentiments. At the interbank foreign exchange, the rupee opened at 83.36 against the greenback, registering a rise of 6 paise over its previous close. In initial deals, the rupee also saw a low of 83.40 against the greenback. The rupee on Tuesday consolidated in a narrow range and settled 3 paise lower at 83.42 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent lower at 104.71. Brent crude futures, the global oil benchmark, advanced 0.08 per cent to $ 88.99 per barrel. "Brent has risen to $ 89 per barrel on fresh supply concerns stemming from Ukrainian attacks on Russian energy facilities and escalating conflict in the Middle East. This is the highest level seen this year so far," IFA Global Research Academy said in a research note. Rising crude prices are a bit of a concern for the Rupee as it threatens current account dynamics which are currently favorable, the note said. The rupee is likely to trade in a 83.20-83.40 range with sideways price action, the note added. On the domestic equity market front, Sensex declined 298.82 points, or 0.40 per cent, to 73,605.09 points. The Nifty fell 84.35 points, or 0.38 per cent, to 22,368.95 points. Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 1,622.69 crore, according to exchange data.
Source: Business Standard
New Delhi: With sub-standard pashmina shawls and silk exports hurting India’s image, the Union textiles ministry is planning to set up new laboratories and upgrade existing ones to test and validate pure textiles, including pashmina, silk, cotton and coarse-wool products before they are shipped, two persons aware of the matter said. This initiative aims to curb exports of poor-quality products to the global market, helping improve India's standing in the international textile industry, they said. The upgraded labs are expected to help enhance the quality of textile products and boost exports by instilling greater confidence among buyers. “The plan is to establish new testing facilities in almost every textile cluster so that certification of fabrics and finished products gets validated by the government-run testing centres," the first person said. The new testing facilities are proposed to be established in almost every textile cluster such as Gujarat, Punjab, Jammu & Kashmir, Tamil Nadu, Uttar Pradesh, Maharashtra, and Karnataka. Besides, upgrade of existing.
Source: Live Mint
Hyderabad: Welspun Living Ltd. (WLL), which is into home textiles, said it made a remarkable achievement in its sustainability performance in the latest S&P Global’s Corporate Sustainability Assessment (CSA) scores for 2023. With an overall score of 66 on the S&P Global ESG Score, WLL has become the top ranked textile manufacturing company from India in the Textile, Apparels & Luxury goods category in this global ESG ratings. The FY23 scores showed significant improvement, with an approximately 11 per cent increase from the previous year’s score of 59, underscoring the company’s commitment to the adoption of Sustainable practices across the textile value chain. Welspun Living’s growth trajectory in sustainability is evident across all dimensions, as highlighted by the following updated scores, the company said. “ESG is at the core of everything that we do at WLL and the substantial improvement in S&P Global ESG scores is a testament of our efforts. We take great pride in our enhanced sustainability performance across the entire textile value chain, exemplified by our latest scores “said DipaliGoenka, CEO & MD of Welspun Living Limited.
Source: Biz Buzz
The European Apparel and Textile Confederation (Euratex) has launched a new initiative for upskillng and reskilling EU's textiles, clothing, leather and footwear (TCLF) industries in a bid to overcome the skills gap prevalent in the industry currently. Euratex explained it will collaborate with European Confederation of the Footwear Industry and Confederation of National Associations of Tanners and Dressers of the European Community to support the creation of regional partnerships in the area skills as part of the initiative. This new SkillBridge project, supported by the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), is specifically aimed at helping develop action plans with regional authorities, local TCLF industry and education providers. Euratex believes that these action plans should respond to the changing education and skill needs of the TCLF industry. The initiative will offer a mobility scheme for regional stakeholders from the industry along with offering support for SMEs, to help them develop reskilling or upskilling initiatives in their companies. Euratex director general, Dirk Vantyghem, commented: “Addressing the skills gap, and attracting young people with the right set of skills, is essential to strengthen the European textiles industry. We are grateful to the European Commission to offer the necessary support and want to reach out especially to the regional authorities, to work together and design a skills strategy that works for its local TCLF industry.” This project comes less than a month after Euratex launched Aequalis-4-TCLF, an EU co-funded project also aimed at fostering upskilling and reskilling within the textile, clothing, leather and footwear sectors. The Aequalis-4-TCLF initiative, developed under the Erasmus+ Programme in alignment with the EU Pact for Skills, brings together 19 partners predominantly from Eastern and Northern Europe. The group will work together for four years to empower workers in the TCLF domain through enhanced skill development. Euratex shared that the TCLF SkillBridge project complements the MetaSkills and Aequalis projects, which have been launched earlier this year. According to Euratex, these projects share the same objectives which have been established in the TCLF Pact for Skills, and thus contribute to addressing one of the most critical bottlenecks which is faced by the TCLF industry: the shortage of qualified labour. Furthermore, these three projects will collectively allow Euratex and its partners to work with all relevant stakeholders spanning sectors across the EU and beyond.
Source: Just Style
ISLAMABAD: Pakistan’s textile exports marginally increased by 3% and reached $1.3 billion in March 2024 compared to the same month of last year, according to provisional data compiled by the All Pakistan Textile Mills Association (Aptma).
Last year in March, textile manufacturers had exported goods worth $1.26 billion. When compared with exports of $1.41 billion in February 2024, textile shipments registered a slump of around 8% in March 2024. Earlier, textile exports surged 20% in February compared to shipments of $1.18 billion in the same month of the previous year. However, on a month-on-month basis, textile exports dropped over 3% in February against $1.46 billion in January. Exports have registered an increase for four consecutive months as compared with last year. Overall, exports of the textile industry have remained stagnant in the first nine months of the current financial year, recording a decline of 0.3%, or $0.04 billion, to $12.44 billion. Industry officials attribute the decline to a manifold increase in input costs for textile manufacturers, which makes exports uncompetitive in the international market. The textile sector has already warned the Special Investment Facilitation Council (SIFC) about the likelihood of a further decline in shipments in the absence of financially viable energy supplies. It pointed out that the lack of a competitive energy source for the industry was a major obstacle in the way of sustaining manufacturing activities and competing internationally. Exporters enjoyed a regionally competitive energy tariff of 9 cents per kilowatt-hour (kWh) in financial year 2021-22, which resulted in a record growth of 54% in textile and apparel exports, from $12.5 billion in FY20 to $19.3 billion in FY22. However, the power tariff for export-focused firms was later increased to over 14 cents per kWh, leading to a decline in textile and apparel exports to $16.5 billion in FY23.
Source: Tribune
The Bankruptcy Trustee for textile-to-textile recycling company Renewcell has confirmed multiple bids have been submitted for the business and assets of its estate. Renewcell has announced the purchase bids it received ahead of its 28 March deadline will undergo a thorough review process, with a final closing expected in the middle of April. Renewcell, which announced its bankruptcy in February, developed a patented process that enables the recycling of cellulosic textile waste, such as worn-out cotton clothes and production scraps to transform them into a new material called circulose. The company explained at the time that its decision followed advanced negotiations with its two largest shareholders Swedish fashion brand H&M and biotech company Girindus, as well as its existing lenders, potential new investors and other stakeholders. Renewcell added that despite these discussions, no concrete solution was found to provide the company with the sufficient financing to be able to complete the strategic review it announced in November with a satisfactory result. Renewcell’s chairman of the board of directors Michael Berg stated that even though the company was part of “intense” dialogues with both current main owners, new investors, banks and other stakeholders, these discussions were “unsuccessful”.
Source: Just Style
A NEW wave of vigorous industrial transformation is picking up speed, as the global industrial chain has become increasingly reshaped, which is expected to bring new opportunities and challenges to China's textile industry. Increasingly, Chinese textile enterprises are boosting their digital transition based on 5G, industrial internet and artificial intelligence (AI) innovations. The sector is also witnessing a higher level of consolidation in the country. The Chaoshan region, east of Guangdong province, has been a pioneer in the development of the textile industry in China and the world. Since the reform and opening up drive was kicked off in late 1970s, Shantou City, Guangdong, has seen a very fast development of textile and garment industry. In 2023, the total output value of the city's textile and garment enterprises above the government's designated size reached 111.8 billion yuan ($15.73 billion). At the three-day China Chaoshan International Textile and Garment Exhibition (CTGE), which closed in Shantou City on Saturday, a good number of textile companies showcased their new technologies and clothing materials as they strive to achieve a rapid upgrade in the textile industrial chain. The technological innovation in clothing materials and changes in the industrial and supply chains have made the Chinese textile sector very competitive in the global marketplace, compared with other textile plants elsewhere. China's standing as a strong textile manufacturing power is unlikely to change.
Source: The Manila Times
KARACHI: Textile exports witnessed a modest increase of 3 percent year-on-year in March, reaching $1.3 billion up from $1.26 billion in the same month last year, according to provisional figures released by the All Pakistan Textile Mills Association (APTMA) on Tuesday. The rise marks the fourth consecutive month of year-on-year growth for the sector, which accounts for over half of the nation’s total exports and serves as a vital source of foreign exchange. Despite this uptrend, the country’s textile exports for the first nine months of the fiscal year 2023-2024 experienced a slight decline of 0.3 percent, falling by $0.04 billion to $12.44 billion.In February, the sector saw a significant 20 percent surge year-on-year, with exports totaling $1.41 billion. However, compared to February, March exports showed a nearly 8 percent decrease. Analyst attributed the growth in the textile goods to increased production of the textile goods during the month. They said the growth trend in the export of textile goods was set in the last three months and this momentum didn’t break even in March when the situation further improved in terms of gas supply to the sector, which resulted in increased productivity during the month. With the country grappling with a shortage of foreign exchange, textile exports play a pivotal role in bridging this gap. They constitute a substantial portion of the nation's exports, contributing significantly to its foreign exchange reserves. The reliance on textile exports to bolster reserves is crucial for Pakistan, which often resorts to borrowing to address its foreign exchange needs. The textile manufacturers did not issue detailed figures for the exports of their products in February. March's promising growth signals optimism for Pakistan's economy, suggesting potential for further expansion despite challenges in maintaining steady growth amidst fluctuating global demand. Efforts to bolster the textile sector are crucial for Pakistan's economic stability and growth, requiring attention to structural issues, technology investment, and business environment improvement.
Source: International News
Bangladesh's merchandise exports exceeded the $5 billion mark in March for the fourth consecutive month, providing relief to the country's dwindling foreign exchange reserves, although the achievement has been slightly impacted by slower inward remittances. The export receipts reached $5.10 billion in March, marking a 9.88% year-on-year increase, according to data published by the Export Promotion Bureau (EPB) on Tuesday. However, the earnings were slightly lower than the $5.19 billion recorded in February. Industry insiders foresee that this boost will fortify the country's foreign exchange reserves and contribute to mitigating volatility in the dollar market. According to data from the Bangladesh Bank, gross reserves stood at $19.45 billion as per BPM-6 on 27 March.In March, inward remittances stood at around $1.99 billion, marking the end of an upswing observed in the previous two months when the figure remained above the $2 billion mark. EPB data show apparel exports grew by about 11% to reach $4.34 billion in March, a significant increase from $3.89 billion a year ago. Of the amount, knitwear exports saw 16.47% growth, reaching $2.42 billion compared to $2.07 billion in the corresponding month last year, while woven apparel shipment increased by about 6.26% to hit $1.93 billion, up from $1.81 billion. EPB data say overall export earnings rose by over 4.39% to $43.55 billion in the first nine months of this fiscal year, compared to $41.72 billion in the corresponding period a year ago. For apparel exports, the growth was over 5.53% to $37.20 billion in the first nine months of this fiscal year, compared to $35.25 billion a year ago. However, woven garment exports experienced 0.47% growth, while knitwear saw 9.79% growth in the nine months leading up to March. "Since January this year, the apparel sector has experienced growth in shipments that exceeded expectations," Faruque Hassan, outgoing president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard. The apparel exporters have invested to produce high-value and new products with diversified fibre, which is aiding in achieving such growth, he added. Some new markets – Japan, Australia, South Korea, and the Middle East – have also helped to increase shipments, he said.
Apparel exporters await a big jump
Apparel exporters are optimistic about growing their business this year as buyers are increasing their orders. Talking with TBS, Giant Group Director SM Majedur Rahman said, "In the last six months, we have enjoyed about 40% growth in orders." "We hope to complete the year with at least 30% growth," he added. Majedur mentioned that one of their largest US buyers has placed some high-value apparel orders, which will help them increase their products' average prices. BGMEA President Faruque Hassan expects apparel exports to improve in the coming days, as most brands have already cleared their inventories.
Buyers for reducing prices
Exporters have expressed concerns that buyers are pushing to reduce product prices even below those of last year. Aman Garment Managing Director Md Jasim Uddin said, "It will be very difficult to adjust the price by manufacturers alone as their increased utility and wage expenses have pushed them into a tight corner." Nipa Group Managing Director Md Khosru Chowdhury said they have already booked full capacity of orders until next June, but the prices remain about 11% lower than a year ago. Faruque Hassan said manufacturers have to increase their bargaining capacity to raise their prices. "It will not be logical when a buyer asks us to reduce prices after the wage hike," he said, adding that it is time to increase prices as buyers are enjoying good sales.
Some challenges remain
Faruque Hassan said despite an increase in utility prices, uninterrupted gas and electricity supply remains a challenge for apparel manufacturers. “When western countries are reducing their interest rates, in Bangladesh we are facing challenges to minimise the finance cost as bank interest rates are increasing," he added. Echoing the sentiment of the BGMEA president, Envoy Textile Ltd Chairman Kutubuddin Ahmed said they have spent an additional Tk29.47 crore in the first six months of this fiscal year due to gas price hikes. He mentioned that the mill's gas bill increased by 143% and financial expenses by 42.29%.
Home textiles back in business
Among other major sectors, the home textile industry has registered positive growth in year-on-year exports for the last two consecutive months after about one and a half years. Exports of home textile products posted 7.9% year-on-year growth to $97.2 million in March, compared to $90.1 million a year ago. Joseph Chowdhury, chief marketing officer at Momtex Expo Ltd, told TBS, "Some orders are coming to Bangladesh as global demand for home textiles is growing." "But we are still facing challenges to remain competitive with other countries as raw material prices and bank interest rates are not favourable for exporters," he added.
Overall performance of notable sectors
Among other notable sectors, leather and leather goods experienced a negative growth of 13.65%, totalling $794.19 million in the nine months to March, down from $919.73 million a year ago. During the same period, export earnings from agricultural products stood at $715.84 million, marking 5.60% growth from a year ago. Export receipts from jute and jute goods again experienced negative growth of 5.60%, amounting to $659.54 million, according to EPB data. Another potential export sector, engineering products, also marked a negative growth of 2.77%, totalling $389.18 million.
Source: TBS News
