New Delhi: India is working on an ambitious target to achieve $600 billion of textile exports by 2047 from $44 billion in FY22 and the domestic market to grow to $1.8 trillion from $110 billion in 2022, led by a surge in fast fashion and growth in ecommerce. The textiles ministry is formulating its Vision 2047 based on five thematic pillars-research & innovation; infrastructure, trade & investment; marketing & brand promotion; skilling & quality and sustainability. "One workshop has taken place with the stakeholders. Discussions are on to have ambitious but realistic targets," said a person aware of the deliberations. As per initial discussions, the exports of apparel and made ups could cross $350 billion by 2047 and those of technical textiles could be around $85 billion. For the domestic market, apparels could grow to $1.2 trillion and technical textiles to around $460 billion. Industry has raised challenges of raw material for achieving the $350 billion export aim for apparels besides the need for an investment policy for textiles and a mission mode plan for supply augmentation. Promotion of domestic brands and suppliers as global champions and a mission on quality entailing the Moreover, milestones for 2030 are also under consideration wherein domestic market is seen growing to $250 billion by 2030 and exports to $100 billion. The vision includes making India a global leader in sustainable manufacturing with 30% share of global recycled fibres and setting up a new segment of the value chain-textiles recycling and waste management. Developing textiles knowledge hub and centres of excellence for national tech creation and sharing of intellectual property rights are also being discussed. 2047 would be the 100th year of India's Independence. "The moment a new government comes, a 100-day plan and then a long-term plan till 2047 could be announced," said another person aware of the deliberations. Promotion of domestic brands and suppliers as global champions and a mission on quality entailing the enhancement of productivity of natural fibres are being deliberated as part of the plan. Focus could also be given to indigenous machinery manufacturing, self-reliance in high-tech and high value exports and a self-sustaining indigenous supply chain. Moreover, milestones for 2030 are also under consideration wherein domestic market is seen growing to $250 billion by 2030 and exports to $100 billion. The vision includes making India a global leader in sustainable manufacturing with 30% share of global recycled fibres and setting up a new segment of the value chain-textiles recycling and waste management. Developing textiles knowledge hub and centres of excellence for national tech creation and sharing of intellectual property rights are also being discussed. 2047 would be the 100th year of India's Independence. "The moment a new government comes, a 100-day plan and then a long-term plan till 2047 could be announced," said another person aware of the deliberations.
Source: The Economic Times
The Prime Minister's Office (PMO) has asked the commerce ministry to examine the model text of the bilateral investment treaty (BIT) and suggest modifications to further improve the ease of doing business, according to sources. The exercise assumes significance as only seven countries have accepted the existing model text treaty, and most of the developed nations have expressed their reservations on the text with regard to provisions like the resolution of disputes. These investment treaties help in protecting and promoting investments in each other's countries. These pacts are important as India has earlier lost two international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes. Sources said an internal discussion will be held on the model text of the treaty on Monday in the commerce ministry with experts and lawyers. "There will be a presentation in the meeting. We are having an internal discussion on the issue. The PMO is looking into it and has asked the commerce ministry to provide a third-party perspective on the model text," they said. Although BIT is the subject matter of the finance ministry, the commerce ministry will try to elicit the views of the third party and suggest ways for consideration to higher authorities. Investment facilitation is one of the chapters in the free trade agreement being negotiated by the commerce ministry. The treaty is a key sticking point between India and the UK, as both countries are negotiating a free trade agreement and BIT. According to experts, the four-European nation bloc EFTA (Iceland, Liechtenstein, Norway, and Switzerland) would also demand BIT. India and the European Free Trade Association (EFTA) on March 10 signed a free trade agreement under which New Delhi received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products, such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties. Economic think tank GTRI (Global Trade Research Initiative) has stated that as India aims to become the third-largest economy, it needs to align its treaties with global investment practices, address the negative perception caused by the mass treaty cancellations and reflect on its negotiation skills. It has said India has cancelled 77 of its over 80 BITs by 2016, as they didn't align with its interests. "Now, it is renegotiating with 37 countries using the restrictive 2016 Model BIT, which may lead to protracted negotiations due to its narrow 'investment' definition, vague terms, omission of principles like 'fair and equitable treatment', and Most-Favoured Nation status," GTRI co-founder Ajay Srivastava has said. According to Srivastava, the model BIT demands investors seek local solutions for at least five years before arbitration, making new BITs challenging for other countries. Finance Minister Nirmala Sitharaman, in her interim Budget speech on February 1, has said that India is negotiating bilateral investment treaties with different countries.
Source: Business Standard
The bilateral trade between Singapore and India surged to USD 35.6 billion in the fiscal year 2022-23, marking an 18.2 percent increase compared to the previous year, a senior diplomat at the Indian High Commission here said on Saturday. Singapore ranks as the sixth-largest export destination for India globally, while also serving as the eighth-largest source of imports for India during the same period. T Prabakar, the First Secretary (Commerce) at the high commission said that Singapore is India’s eighth largest trade partner (2022-23), with a share of 3.1 per cent of India’s overall trade. Addressing the Institute of Company Secretaries of India (ICSI) Third International Conference being held in Singapore from April 5-6. He said that trade between Singapore and India saw a growth of 18.2 per cent in the year and rose to USD 35.6 billion in 2022- 23. “Our imports from Singapore in FY 22-23 were USD 23.6 billion, a growth of 24.4 per cent, and exports to the city-state totalled USD 12 billion, up 7.6 billion in the previous financial year,’’ he told some 100 delegates at the conference. In terms of India’s exports, Singapore is the sixth largest export destination in the world, and in terms of imports, the city-state is the eighth largest source for India globally during 2022-23. It is not only in merchandise trade that India-Singapore ties are growing, Prabakar said, adding that FDI (foreign direct investment) equity inflows into India from Singapore during 2022-23 stood at USD 17.2 billion. The cumulative FDI inflows from Singapore to India stood at USD 155.612 billion from April 2000 to December 2023, accounting for 23 per cent of the total FDI flows into India, he said. Giving an overview of India-Singapore relations, Prabakar pointed out that Singapore is also amongst India’s largest sources of External Commercial borrowings. He also highlighted a wide range of strategic cooperation between the two nations in new fields, such as technologies, AI and green energy. The two-day conference discussed a wide range of trade and technology issues, with ICSI members seeking insights into Singapore’s law related to businesses that can be complementary to corporate and small enterprises in India.
Source: First Post
Negotiations for a free trade agreement (FTA) between India and Oman have concluded, and it's likely to be signed after the formation of a new central government in the coming months, two people aware of the matter said. The pact, officially known as the Comprehensive Economic Partnership Agreement (CEPA), will boost Indian exports to the West Asian country by eliminating duties, especially on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. "All issues have been sorted out. We are looking at good benefits in services. The deal with Oman will help us in building a holistic ecosystem for a green energy-efficient manufacturing base," said one of the persons mentioned above, who asked not to be named. "Strategically, the deal is very important. It will allow Indian companies to set up manufacturing plants in Oman to export green products," the person added. The general elections start on 19 April and counting of votes starts on 4 June. Oman is India's third-largest export destination among Gulf Cooperation Council (GCC) countries with bilateral trade standing at $12.39 billion in FY2023, up from $5 billion in FY2019. India's exports to Oman have increased from $2.25 billion in FY2019 to $4.48 billion in FY2023. However, at present, over 80% of Indian exports to Oman attract an average 5% import duty. Oman's import duties range from 0% to 100%, along with other specific duties. A 100% duty applies to specific meats, wines, and tobacco products. After the signing of the deal, India aims to substantially increase its exports to the West Asian country. Issues related to labour mobility have also been covered under the agreement. "Investments will go both ways. We expect significant growth across 7,000 trade lines (products) that currently attract 5% duty in Oman," the person added. There are plans for Indian companies to process aluminium and steel in Oman, before exporting them to third countries, due to lower energy costs in the West Asian country. "After the FTA, big Indian business conglomerates will set up their units and export green goods to European markets," the person mentioned above added. "The presence of over 6,000 India-Oman joint ventures, with substantial Indian investment in Oman's Sohar and Salalah Free Zones, underscores the depth of economic engagement. Moreover, the FTA serves as a strategic lever for India to expand its influence and strengthen relationships within the broader Middle Eastern region," said Ajay Srivastava, founder of the economic think tank Global Trade Research Initiative (GTRI). "This agreement will not only boost trade and investment opportunities but also contribute to India's geopolitical objectives, offering a balanced approach to its trade relations with Oman," Srivastava added. The FTA is also expected to help Oman diversify its economy away from its reliance on oil exports. By granting preferential access to Indian goods and services, Oman will benefit from India's expertise in various industries. India's merchandise imports from Oman were valued at $7.9 billion, while service services imports stood at $0.6 billion during FY23. India is a major importer of petroleum products, Liquified Natural Gas (LNG), gaseous hydrocarbons, and chemical fertilizers from Oman. Spokespersons of the commerce ministry, the commerce secretary and the Oman embassy didn't respond to emailed queries.
Source: Live Mint
AHMEDABAD: Eid-ul-Fitr is around the corner and the city’s textile market is buzzing with activity. Retail demand has been high, leaving the market in a bullish mode for the festival season ahead. The order cycles usually run around four months ahead of each season and processing houses in Ahmedabad, one of the biggest cotton textile hubs in the country, have capacities to churn out more than 3 crore metres per day. Gaurang Bhagat, president, Maskati Cloth Market Mahajan said, “There has been a good demand ahead of Eid City’s textile traders are reporting a significant increase in orders from across different states, signalling good times for the industry in the upcoming festival season. Placement of orders and manufacturing process begin around three to four months before any festival and the sentiment is quite encouraging this year.” He added that despite the new MSME payment rule, which has had traders voicing their concerns and apprehensions since January, the demand trend has been positive for the textile industry. What adds momentum to the demand is the comparatively low cotton prices that have remained in the range of Rs 55,000 to Rs 61,000 per candy. Industry insiders say the prices are quite low compared to the previous two years. Raw material prices have dropped, allowing the manufacturers to produce fabrics more affordably, passing on the benefits to traders and registering a significant increase in volume.
Source: Times of India
New Delhi: To prevent incidents such as the devastating Uphaar Cinema fire, the Union textiles ministry plans “strict" action against companies that violate the Quality Control Order (QCO) mandating fire-resistant upholstery, two persons aware of the matter said. Sub-standard upholstery is often the first to ignite in fire incidents. The Uphaar Cinema fire in New Delhi, one of the biggest fire tragedies in India, occurred on 13 June 1997, killing 59 people and injuring 103. According to the QCO, all upholstery components must comply with the Bureau of Indian Standards (BIS) norms for protected textiles, which fall under the category of technical textiles. The materials used in upholstery should be fire-resistant to minimize the impact of fire. “We are sensitizing manufacturers of upholstery fabrics and furniture to comply with standards set by the BIS, given that it is directly related to the lives of humans and the damage of properties," the first person said. “With the QCO coming into effect, raw materials for making fire-retardant upholstery as an assembly for furniture would not be allowed without mandatory BIS certification." The QCO, in force since October 2023, applies to furnitures used in cinema halls, conference halls, seminar halls, community halls, etc. BIS norms are applicable to imported furniture with upholstery assembly. However, the order does not apply to furniture used in homes or furniture manufactured for export purposes. The QCO has led to a reduction in imports. According to data provided by the textile’s ministry, imported upholstered seats with wooden frames contracted 22.11% in 2022-23, to $34.67 million from $44.51 million in 2021-22. However, imported upholstered seats with metal frames has increased 30.76% to $29.29 million in FY23 from $22.40 million in FY22. "The implementation of the QCO may raise the cost of upholstery work by 5-10%; however, it will result in substantial savings by reducing the damage caused by fire incidents. Flame-retardant fabrics are considered safer because they take longer to burn than normal fabrics, allowing more time to react and put out the fire," the second person said. Using fire retardant curtains and upholstery is crucial for businesses to ensure customers' safety, the above person said, adding that fires caused by upholstered furniture are documented to be up to 14 times more deadly than other house fires. Queries emailed to spokespersons of the Textiles Ministry, Consumer Affairs Ministry, and BIS remained unanswered till press time. Also, representatives of Association of Furniture Manufacturers & Traders refused to comment on the matter. QCOs are regulatory measures implemented by the government to ensure quality of certain products in the market. Therefore, compliance with the QCO mandates all to take conformity certificates for fire retardant upholstery fabric used for furniture meant for public use (non- domestic).
Source: Live Mint
Gwalior Airport in Madhya Pradesh has undergone a makeover. At the heart of the transformation is the departure check-in area, where visitors are greeted by a stunning display of ceiling art. The artwork, blending heritage and modernity, was crafted by Krishnan Rajesh and East Craft Designs. Hanging 20 meters above, 48 panels showcase Gwalior's rich history and culture Each panel is carefully crafted to depict scenes from the city's past, creating a captivating visual experience. Each panel is designed to create a grand chandelier effect, adding to the airport's ambiance. This project not only highlights local talent but also celebrates Gwalior's cultural heritage, making the airport more than just a transit hub. Reflecting on the project, Rajesh, said, "The collaborative effort between local artisans and craftsmen from across Madhya Pradesh and with the immense support from the Art Curator, AAI. Together, they seamlessly integrated age-old weaving, embroidery, and block printing techniques with contemporary design elements, resulting in a masterpiece that pays homage to Gwalior's vibrant heritage."
Source: Times of India
The rupee appreciated 15 paise to 83.16 against the US dollar in early trade on Wednesday, tracking its Asian peers amid a positive trend in domestic equities. Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels. At the interbank foreign exchange market, the local unit opened at 83.23 against the greenback. It later touched 83.16 in initial trade, registering a rise of 15 paise from its previous close. On Monday, the rupee settled on a flat note at 83.31 against the US dollar. Forex and money markets were closed on Tuesday on account of 'Gudhipadwa'. "The Indian rupee is expected to rise to 83.21 levels as the dollar remained sideways and Asian currencies rose this morning," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 104.14. Brent crude futures, the global oil benchmark, rose 0.04 per cent to USD 89.46 per barrel. The Brent oil was down slightly from its elevated levels as signs of potential build-up in US inventories and the market watching for progress in ceasefire talks between Israel and Hamas. Asian currencies all gained as CNH rose to 7.2397 levels as markets await US CPI data which is expected to come at 3.4 per cent against last month data of 3.2 per cent, Bhansali said, adding that the US FOMC meeting minutes are also to be released tonight alongside the Federal Budget Balance. On the domestic equity market front, The 30-share BSE Sensex climbed 273.65 points to 74,957.35 in early trade. The NSE Nifty advanced 83.85 points to 22,726.60. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 593.20 crore, according to exchange data.
Source: Business Standard
Bangladesh should expedite garment production from man-made fibre (MMF) as global exports of such apparel is estimated to rise from 50 per cent in 2022 to 60 per cent in 2030, a recent study by PwC revealed. Global export of garments will rise from $953 billion in 2022 to $1,121 billion by 2030, the study projected. PwC shared the findings of the study at a press conference held at the office of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The study was commissioned by BGMEA as Bangladesh aims to export apparel worth $100 billion by 2030.
Source: Fibre2fashion
The technical textile industry gathers in Frankfurt, where Techtextil, the leading global fair for technical and innovative textiles, will take place from April 23 to 26. Over 50 Italian textile machinery companies will exhibit in Germany. Among them, 30 will be present at the Italian Pavilion organized by the Italian Trade Agency and ACIMIT, the Association of Italian Textile Machinery Manufacturers (Hall 12.0, booth A06 and B11). Among the companies exhibiting in this area ACIMIT associates are the following ones: Aeris, Bematic, Beschi, Bombi, Castello, Color Service, Ferraro, Gualchieri e Gualchieri, Guarneri Technology, Mariplast, Monti-Mac, Pentek, Rollmac, Salvadè, Sariel, Sicam, Srs, Stalam, Tecnomeccanica Biellese, Testa, Texera, Toscana Spazzole, Ugolini, Unitech, Zanfrini, Zappa. The sector of technical and innovative textiles continues to grow at a rapid pace. In 2023, the global trade of these items reached 44.7 billion euro, with an average annual growth rate of 4.4% between 2009 and 2023. The European Union contributes 35% to the sector’s global trade. Germany and Italy are among the leading exporters of technical textiles, along with China, the United States, and Japan. The growth of the sector, both in terms of production and consumption, has led to an increase in demand for specialized machinery for this particular segment. Italian textile machinery manufacturers have long expanded their technological supply to meet the new needs of clients operating in this specific sector. In fact, over 100 ACIMIT member companies already work for sector clients.
Marco Salvadè, president of ACIMIT, comments: “Techtextil continues to be a fundamental reference point for Italian manufacturers working or wanting to enter the business of technical and innovative textiles. The versatility of the Made in Italy technologies is well-suited to be used in the various application fields of technical textiles, and it is capable of meeting the different requests that will come from the many visitors of Techtextil.” The Italian firms present at Techtextil represent only a part, albeit a significant one, of the companies in Italy producing machinery for technical textiles and nonwovens.
Source: Fibre2fashion
Ratings agency Fitch revised its outlook on China's sovereign credit rating to negative on Tuesday, citing risks to public finances as the economy faced increasing uncertainty in its shift to new growth models. Fitch forecast the general government deficit would rise to 7.1 per cent of gross domestic product (GDP) in 2024 from 5.8 per cent in 2023, the highest since a reading of 8.6 per cent in 2020, when Beijing's strict COVID curbs weighed heavily on the world's No.2 economy. While it lowered its outlook, indicating a downgrade is possible over the medium term, the agency affirmed China's IDR rating at 'A+'. Fitch forecast China's economic growth would slow to 4.5 per cent in 2024 from 5.2 per cent last year, in contrast to Citi and the International Monetary Fund, which both revised up their China forecasts. China's factory output and retail sales topped forecasts in January-February, joining better-than-expected exports and consumer inflation indicators, providing an early boost to Beijing's hopes of reaching what analysts have described as an ambitious 5.0 per cent gross domestic product growth target for 2024. "The outlook revision reflects increasing risks to China's public finance outlook as the country contends with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model," Fitch said. China's finance ministry said following the announcement it regretted Fitch's ratings decision. Moody's in December slapped a downgrade warning on China's credit rating, citing the costs to bail out local governments and state firms and control its property crisis.
Source: Business Standard
