Synopsis The final HSBC India Services Purchasing Managers' Index, compiled by S&P Global, rose to 61.2 last month from February's 60.6, confounding a preliminary reading for a fall to 60.3. India's services sector accelerated in March buoyed by strong demand, the final HSBC India Services Purchasing Managers' Index, compiled by S&P Global, showed on April 4. The number in March went up to 61.2 last month from February's 60.6, confounding a preliminary reading for a fall to 60.3. According to the survey, employment in the services industry rose at the quickest pace in seven months and export business surged at a record rate. A PMI reading above 50 means expansion, while a below-50 reading shows contraction. March was the 32-th consecutive month of expansion for the sector. "India's services PMI rose in March, following a small dip in February, on the back of strong demand that spurred sales and business activity," News agency Reuters quoted Ines Lam, economist at HSBC, as saying. The data showed March exports jumping at the fastest pace since the subindex was included in the survey in September 2014. New business during the month was driven by strong domestic demand and favouable economic conditions, the survey showed. That in turn buoyed job sentiments as companies raised hiring to the fastest pace since August 2023. The overall outlook for the year continued to be optimistic, the survey showed. The March data, however, also showed the future activity sub-index had fallen to a four-month low, owing to lingering concerns over competitive pressures. Prices in the industry also rose at the fastest rate since July 2017, as rising input costs combined with rising demand caused firms to pass on the increase to clients. High prices could influence the RBI's rate call, with the repo rate likely to be kept at the current 6.50% for a longer period. Faster expansion in services activity, alongside a manufacturing industry growing at the fastest pace in 16 years in March, pushed the HSBC final India Composite PMI Index to an eight-month high of 61.8 from the previous month's 60.6 and higher than a preliminary reading of 61.3.
Source: Economic Times
Synopsis FY24 indirect tax collection exceeded Revised Estimates with record GST collection. CBIC chairman praised tax officials for professionalism, highlighting excise duty, customs, and revised direct tax target. The indirect tax collection for FY24 has exceeded the revised estimates (RE) of Rs 14.84 lakh crore by "a handsome margin", helped by a record GST mopup, a top government official said. Lauding the efforts of tax officials, CBIC chairman Sanjay Kumar Agarwal, in a letter to field officials, said, "I am happy to inform that the indirect tax collections for the Financial Year 2023-24, including Customs and Union Excise Duty have exceeded the Revised Estimates by a handsome margin". This achievement not only reflects professionalism but also underscores the strength of teamwork and perseverance within the CBIC community, he said, adding that "your relentless efforts have not gone unnoticed, and I extend my heartfelt appreciation to each and every member for their invaluable contributions throughout the year". The gross GST mop up for 2023-24 also marks a milestone with the collection of Rs 20.18 lakh crore -- comprising state GST, Central GST, integrated GST and The RE for central GST, including compensation cess, was Rs 9.57 lakh crore, while for excise duty it was Rs 3.08 lakh crore and customs Rs 2.19 lakh crore. In the Interim Budget presented in February this year, the government raised the target for direct tax collection in FY24 (April 2023 to March 2024) to Rs 19.45 lakh crore, while for indirect taxes -- including GST, Customs and Excise - - the target was lowered to Rs 14.84 lakh crore. The GST remained at a high point during the last fiscal with collections reaching a record high of Rs 1.87 lakh crore in April 2023 and the second highest collection coming in at Rs 1.78 lakh crore in March 2024. The gross tax collection target, as per the revised estimate, stood at Rs 34.37 lakh crore for FY24. Tax collection is a reflection of economic activity. India is recording a world beating growth rate and is projected to grow at 7.6 per cent in 2023-24, as per NSO estimates. Domestic consumption and government capex are the main drivers of the country's economic momentum. Indian economy grew by over 8 per cent for three consecutive quarters (April December), and various agencies have revised the growth estimates of India for FY24 closer to 8 per cent. SBI Research and Moody's expect GDP growth for FY24 to be 8 per cent. Fitch
Source: The Economic Times
T– shirts printed with the images of political leaders, caps with symbols of political parties and shawls with signature shades of various parties are common during polls. Textile units in the garment hub Tirupur would usually be abuzz with activity, churning out thousands of pieces of merchandise during election season. But this time, the throb is missing. “Election orders are very low this time,’’ says a garment unit owner. There were very few orders, almost negligible compared to the orders in the past. “In the past, candi dates would place orders as soon as their names were an nounced. However, this time, most of them have not come forward to place orders. Even those who used to order 10,000 to 20,000 t-shirts in the past, have not placed orders for even one tenth of that number,” the manufacturer added. In the past, DMK, AIADMK as well as other TN parties would place orders for the merchandise with specific slogans. This time only BJP has placed orders and still it is far less compared to the past elections. Textile industrialists attribute this to several reasons. One of the reasons was a shorter time for cam paigning. There was hardly one month from the date of poll announcement and the date of polling. “Stringent vehicle check-ups by the election commission is also another reason. There is a fear that consignments would be seized. Previously, we could send small orders via bus parcel services, but they no longer accept parcels,” said another manufacturer He said that during 2019 polls, he delivered 30,000 t-shirts to a political party. “This time we did not even receive enough inquiries, let alone orders,’’ he said. Manufacturers pointed out that usually the ruling party functionaries would place more orders. “But now the DMK seems to believe they won’t face tough competition, so they are reluctant to spend money,” said a manufacturer. MP Muthurathinam, president of the Tiruppur Exporters and Manufacturers Association (TEAMA), said that in the past, political parties from various parts of the country would come to Tiruppur to place orders. “Now Ludhiana and Mumbai garment units have captured the market, as prices in Tiruppur are slightly higher,” he said. Stringent election expenditure norms and strict enforcement also play spoilsport for us, he says. In addition, there is a waning interest among cadres and the public to wear t-shirts with party logos, he said.
Source: Times of India
New Delhi: In a bid to curb exports of sub-standard textile products and bolster India's reputation in the global market, the Union Textiles Ministry is planning a significant upgrade of its testing infrastructure. The move comes amid concerns that poor-quality pashmina shawls and silk exports have been hurting the country's image as a reliable supplier, reported Mint. According to two sources familiar with the matter, the ministry aims to establish new state-of-the-art laboratories and upgrade existing facilities to stringently test and validate the purity of textile products, including pashmina, silk, cotton, and coarse-wool items, before they are shipped to international buyers. This comprehensive initiative is expected to play a pivotal role in enhancing the quality standards of Indian textile exports and instilling greater confidence among global buyers regarding the authenticity of the products they procure.
"This initiative aims to curb exports of poor-quality products to the global market, helping improve India's standing in the international textile industry," one of the sources stated.
Source: KNN
Following the tepid demand environment in financial year 2024 (FY24), ICRA expects a muted 8-9 per cent recovery in revenues of its sample Indian apparel-exporting companies to ₹281.5 billion (approximately $3.37 billion) in FY25 from ₹260 billion (approximately $3.11 billion) for FY24, benefitting from the low base and with replenishment of stock in the US and the EU regions, according to ICRA’s recent research note on the Indian apparel export industry. The retail apparel brands in the US and the EU, which together account for close to 55 per cent of global apparel trade, are expected to liquidate the high inventory build-up and book their orders for the summer 2024 season in the first half (H1) of FY25. ICRA’s outlook for the apparel industry remains stable. Despite the ongoing Red Sea conflict, no immediate cost implication is being felt by apparel exporters operating on a free on board (FOB) basis, except for their shipments getting delayed by approximately 15 days from its original transit time. Any sustained continuance of this face-off would have a direct impact on apparel export volumes and their realisations due to higher costs for the customers, as per ICRA. “After a nominal decline in revenues in FY24, ICRA expects the apparel-exporting companies to report a recovery in FY25 on a lower base, with replenishment of stock in the US and the EU regions. Despite a rationalisation in raw material costs in FY2024, the benefit is expected to be passed on to the end-users, considering a weak operating environment at present. The long-term growth prospects look encouraging, with the government of India’s various promotional steps, including the PLI schemes, the PM Mitra parks, the proposed FTAs with the UK and the EU, and the longer-term benefit of China Plus One shift in apparel sourcing,” said Priyesh Ruparelia, vice president and co-group head, corporate sector ratings, ICRA. A difficult operating environment had pushed back large capex investments for most players. However, based on an expectation of demand revival in FY25 and the industry players’ strategies to take advantage of the China Plus One movement, ICRA expects a pick-up in capex spending in FY25. Out of the approved 64 applicants for the PLI 1 scheme in April 2022, 56 completed the mandatory criteria for formation of a new company and approval letters have been issued. Twelve more applications are under evaluation at present, for selection of investors under the scheme. Investment of approximately ₹21.19 billion by 30 selected applicants has been made till September 2023. In addition to the fresh capacity additions under the PLI, the PM Mega Integrated Textile Region and Apparel (MITRA) schemes will strengthen India's presence in the global apparel trade, by providing scale benefits and strengthening the country’s presence in the MMF value chain. ICRA anticipates the culmination of these schemes to enable the Indian apparel exporters to capture a greater share of the Chinese apparel export market. The rating agency estimates its sample companies to report a mild 5-6 per cent YoY dip in revenues to ₹260 billion for FY24. Despite US apparel imports declining by approximately 22 per cent in calendar year 2-23 (CY23), their retail clothing store sales had remained resilient registering a 4 per cent YoY growth, with retailers unwinding their excess inventory position. Amidst no major debt addition, the coverage ratios of the sample set are expected to marginally moderate as earnings weaken. ICRA’s sample set of apparel-exporting companies is likely to report an interest cover of approximately 5.6-5.8 times and total debt/OPBDITA of approximately 1.8-1.9 times in FY24 and FY25, respectively (compared to approximately 6.3 times and 1.5 time respectively, in FY23). The operating margins of apparel exporters may moderate to 9.8-10 per cent in FY24 (11.3 per cent in FY23), on relatively weaker operating performance in the first nine months (9M) of FY24 and contraction in volumes leading to decline in operational efficiencies. Indian cotton yarn prices had averaged approximately 23 per cent lower in 9M FY24 compared to FY23 and 1 per cent lower than the past five-year average. Despite moderation in cotton yarn prices, the same is getting passed on to the customers owing to a weak demand environment. Nevertheless, the stability of export incentives, together with the benefits of higher scale, should help the companies cushion the impact on profitability in FY25.
Source: Fibre2fashion
The sixth century BC Chinese philosopher-soldier Sun Tzu had written in his Art of War, arguably the earliest known work on that subject: “Know the enemy and know yourself; in a hundred battles you will never be in peril”. While there is no gun play in trade and commerce, it can and often does lead to a “trade war”, as seen in 21st century sanctions battles, which can instantly turn a “trading partner” into a “trading foe”. Also Read - Dilip Cherian | Haryana CM’s chief principal secy takes flak for poll activity Advertisement Hence, international trade and commerce potentially could turn as good or as bad as war, where balance sheets matter most. Recurring adverse “balance sheets” can very easily turn toxic, leading to wars of economics, geography and politics. It’s because business is fundamentally about profits and losses. A trader who is a monetary or financial loser is out of business. In international trade, therefore, no major business deal can take place between individual traders or industrialists without policy intervention by nation states, and the endurance of their mutual cordial politico-diplomatic relations.
Source: Deccan Chronicle
Exuding confidence over the Indian economy due to its current pace of growth, the World Bank has said that the country’s economy is expected to have grown 7.5 per cent in the 2023-24 fiscal year on the back of robust growth in the third quarter, revising its earlier forecast of 6.3 per cent. However, it also expects growth to pick up in subsequent years as a decade of robust public investment starts yielding dividends, according to the World Bank’s latest South Asia Development Update released on Tuesday late night. Despite projecting a higher growth for FY 24, the global agency has also projected that the economic growth in India for FY25 is significantly moderate, raising its GDP growth projection for India by 20 basis points to 6.6 per cent in FY25. It also asserted that the expected slowdown in growth between FY23/24 and FY24/25 mainly reflects a “deceleration in investment from its elevated pace in the previous year”. Compared with the World Bank’s projection for FY25, the forecast is lower than that of the Reserve Bank of India (RBI), which has pegged the growth rate at 7 per cent for this fiscal (2024-25). For Q1, the RBI has also estimated 7.2 per cent GDP growth; Q2 GDP is estimated at 6.8 per cent, Q3 at 7 per cent and Q4 at 6.9 per cent. “The growth in services and industry is expected to remain robust, the latter aided by strong construction and real estate activity,” the report noted. As per its latest report, South Asia is expected to remain the fastest-growing region in the world for the next two years, with growth projected to be 6.1 per cent in 2025, mainly driven mainly by the growth in India coupled with recovery in Pakistan and Sri Lanka’s GDP. “In neighbouring Bangladesh, output is expected to rise by 5.7 per cent in FY25 with high inflation and restrictions on trade and foreign exchange constraining economic activity,” the report said. The latest update of the bank further noted that inflationary pressures are expected to subside, creating more policy space for easing financial conditions. “Over the medium term, the fiscal deficit and government debt are projected to decline, supported by robust output growth and consolidation efforts by the central government,” the Word bank noted in its update.
Source: Deccan Chronicle
The Secondary Materials and Recycled Textile Association (SMART) recently announced its “strong support” for the Americas Trade and Investment Act (Americas Act), a piece of legislation introduced by federal lawmakers in March that includes over $14 billion in federal incentives for circular innovation in the fashion and textile recycling sectors. The bipartisan legislation, which was introduced by Sens. Bill Cassidy of Louisiana and Michael Bennet of Colorado and Reps. Maria Salazar of Florida and Adriano Espaillat of New York, has been designed to create an expanding and permanent partnership of countries located in the Western Hemisphere to counter China’s influence over global manufacturing and geopolitics. The bill aims to boost domestic circularity and innovation for textiles while also addressing issues such as reshoring, onshoring and the threat of forced labor in supply chains. SMART, based in Rockville, Maryland, says the bill represents a significant milestone for circular textiles, which are included as part of a comprehensive strategy to expand U.S. trade in the Western Hemisphere and enhance the textile industry’s competitiveness in the global economy. It offers strategic support for circular businesses and textile manufacturing in the U.S.
Key provisions of the Americas Act related to textile recycling and reuse include:
“We applaud Senators Cassidy and Bennet for charting a comprehensive strategy that bolsters our industry’s ongoing efforts to divert textile waste from landfills,” SMART President Brian London says. “The approval of the Americas Act is crucial to accelerate our efforts for sustainable textiles, aiming for a true circular economy without waste. “This legislation not only enhances SMART’s long-term mission but significantly propels the United States to the forefront of textile recycling innovation. It ensures the protection of our textile supply chains, supports the resurgence of American-based jobs in the textile industry that had unfortunately been outsourced overseas in past decades and fosters enhanced regional collaboration with partner countries in Latin America.” Established in 1932, SMART, an international nonprofit trade association, says it has promoted high standards and best practices for reusing and recycling textiles and related secondary materials, which is why it is supporting this legislation. “The Americas Act is a monumental step forward, offering legislative support that powers the principles and long-range mission of SMART like never before,” London says. “We stand ready to guide and support this investment that would complement our current efforts of closing the loop on the billions of pounds of textile waste our industry handles yearly, driving significant economic and environmental benefits. With support like that outlined in the Americas Act, our textile recycling industry will increasingly mitigate waste while generating jobs and investment that can become a cornerstone for a healthy economy and a sustainable future.” In a March news release announcing the legislation, Cassidy says the Americas Act is endorsed and cosponsored by the House Select Committee on the Chinese Communist Party Chairman Mike Gallagher.
Source: Recycling Today
The Foreign Buyers Association of the Philippines (FOBAP) recently called for setting up a pilot commercial-scale wearable textile factory to initiate the backward integration of the sector as the country lacks a textile industry. The country needs more garments factories that use locally-made textiles to fulfill orders from the European Union (EU), FOBAP president Robert Young, who is also the trustee for the textile, yarn and fabric sector of the Philippine Exporters Confederation Inc, said. “Just one will be enough; we have to quickly start something so that these foreign investors will follow suit,” Young said in a statement. Philippine garments exported to the EU are subject to a 12 per cent or higher duty due to its strict rules of origin, he was cited as saying by Philippine media reports. The strict EU rules of origin impose a ceiling for value-added inputs sourced from a country that is not a beneficiary under the Generalised Scheme of Preferences (GSP) scheme. The EU prefers that the fabric used in making garments is sourced from domestic firms. The revival of negotiations by the Philippines for a free trade agreement with the EU will also prescribe the same requirements, he added.
Source: fibre2fashion
In a recent gazette notification, Bangladesh’s National Board of Revenue (NBR) said imports have to be declared well in advance of the previous deadline for notifying of their arrival to reduce false declarations and enable quick releases. The decision will help importers receive clearance for products of the general category, excluding those requiring further clearance or high value-added tax payments, by paying customs duty before the goods enter the country. Earlier, the import general manifest (IGM), a document containing detailed information about the cargo being carried on a vessel or an aircraft, had to be submitted 24 hours prior to its arrival into the country. But according to the Pre-Arrival Processing Rules-2024 for Imported Goods issued on March 24, the IGM has to be submitted 24 hours prior to the vessel departing the last port for Bangladesh. Any amendment can be made by the importer or shipping agent within 24 hours of filing the IGM, domestic media outlets reported.
Source: Fibre2fashion
