The commerce ministry is likely to seek further extension of the interest equalisation scheme on pre- and post-shipment rupee export credit for another five years to promote the country's outbound shipments, an official has said. The scheme will end on June 30 this year. "The ministry will do revamping of some schemes like interest equalisation scheme. We would propose an extension of the scheme for five years. The scheme is doing good, and it is helping the exporters," the official said. On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore for the continuation of the scheme up to June 30. The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds. Exporters get subsidies under the 'Interest Equalisation Scheme for pre and post-shipment rupee export credit. The additional outlay of Rs 2,500 crore, over and above the current outlay of Rs 9,538 crore under the scheme, was made available to bridge the funding gap to continue the plan up to June 2024. The scheme was started on April 1, 2015, and was initially valid for five years up to March 31, 2020. It has been continued thereafter, including a one-year extension during COVID19, and with further extensions and fund allocations. Currently, the scheme provides an interest equalisation benefit at the rate of 2 per cent on pre and post-shipment rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines at 4 digit level and 3 per cent to all MSME manufacturer exporters. These sectors include handicrafts, leather, certain fabrics, carpets and readymade garments. The scheme has now been made fund-limited, and benefits to individual exporters are capped at Rs 10 crore per annum per IEC (Import Export Code). According to a statement of the commerce ministry, the banks that lend to exporters at an average rate of more than Repo +4 per cent would be debarred under the scheme. The scheme is implemented by the RBI through various public and non-public sector banks that provide pre and post-shipment credit to the exporters. It is jointly monitored by the Directorate General of Foreign Trade (DGFT) and RBI through a consultative mechanism. From April 2023 - November 30, 2024, the government has disbursed Rs 2,641.28 crore against the allocated budget of Rs 2,932 under the scheme. Rs 3,118 crore was disbursed in 2022-23 and Rs 3,488 crore in 2021-22. Exporters said that the scheme is helping them in the current turbulent times. Federation of Indian Export Organisation (FIEO) President Ashwani Kumar said the support measures under the scheme help in increasing the competitiveness of Indian exporters in the international markets. "In China, the rate of interest is 2-3 per cent and that helps their exporters immensely. The government here should positively consider extending the scheme," Kumar said. India recorded the highest monthly exports in February, registering an 11.9 per cent growth to USD 41.4 billion, mainly driven by increased shipments of engineering goods, electronic items and pharma products. During April-February 2023-24, exports have declined to USD 395 billion compared to 409.11 billion in the same period of 2022-23.
Source: Zee Business
It’s an unforeseen & unexpected speed breaker for bulls charging down India’s equity street. India and Mauritius have moved to amend the India-Mauritius Double Taxation Avoidance Agreement (DTAA), potentially opening up millions of dollars’ worth of foreign investment coming into India from Mauritius for renewed tax scrutiny. The amendment will incorporate a ‘Principal Purpose Test’ or PPT in the bilateral tax treaty which will determine if the sole purpose of a transaction structured out of Mauritius by a third country resident is to gain the benefit of the favourable tax regime offered under the treaty. Such ‘treaty abuse’ will be liable to investigation and India may opt to deny favourable treaty benefits concerning capital gains tax to such investors who ‘fail’ the PPT. Let’s dial back a bit for some context. The first amendment to the India Mauritius DTAA took place in May 2016 with India deciding to firmly shut down the tax avoidance route for funds that set up shop in Mauritius for the sole purpose of gaining exemption from paying capital gains tax as per provisions of the bilateral treaty. Following the 2016 amendment, all investments coming into India from Mauritius up until 31st March 2017 were grandfathered and investments made after April 1, 2017, were subject to capital gains tax in India as per Indian tax laws. The latest 2024 amendment which incorporates the Principal Purpose Test in the DTAA can potentially undo the ‘grand-fathering’ by throwing open even investments made before 2017 to fresh scrutiny. The amendment states that the new protocol “shall have effect without regard to the date on which taxes were levied or the taxable years to which the taxes relate.” Tax experts say this may affect foreign investments that were originally grandfathered under the 2016 amendment. “There needs to be clarity on whether the March 2024 amendment will have retrospective applicability. This can create uncertainty and bring into question India’s status as a stable tax jurisdiction” says Dinesh Kanabar, CEO of Dhruva Advisors. While capital gains are one aspect, the taxation of dividend income is another area that could spark a fresh debate between foreign investors and Indian tax authorities. India made dividends taxable in the hands of shareholders from April 1, 2020. However, foreign investors using the Mauritius route still benefit from a lower 5% withholding tax rate on dividends paid by an Indian company. While capital gains are one aspect, taxation of dividend income is another area that could potentially see a fresh debate between foreign investors and Indian tax authorities. India made dividends taxable in the hands of shareholders from April 1, 2020. However foreign investors coming through the Mauritius route still enjoy a lower rate of 5% withholding tax on dividends paid by an Indian company. “Given the latest amendment, one needs to evaluate the impact of the Principal Purpose Test on the benefit of lower tax on dividends available under the India-Mauritius treaty” says Himanshu Parekh Partner and Head of Tax (West), KPMG India. The 2024 treaty amendment comes into force as soon as the new Indo-Mauritius tax protocol gets notified. With the stock market at all-time highs, the sudden tax hiccup may cause some flutter on the street. However, the Indian equity market has come a long way since 2017. Robust domestic flows have led the 3-year-old post-Covid rally. The coming days will reveal if the Mauritius FPI tax ghost from the past still has the same hold in terms of sentiment on Dalal Street.
Source: CNBCTV
The seventh round of negotiations for the India-Peru Trade Agreement took place in New Delhi, India from April 8 to April 11, 2024. The discussions involved understanding priorities and concerns of each other and ensuring that the negotiations are rooted in mutual respect and benefit. At the start of the seventh-round negotiations, Mr. Sunil Barthwal, Commerce Secretary, Department of Commerce, Ministry of Commerce & Industry, said that the history of India-Peru diplomatic relations dates back to the 1960s. He referred to the visit of H.E. Ms. Teresa Stella Mera Gomez, Vice Minister of Foreign Trade, Peru to India and the bilateral discussions held during the sidelines of the 9th CII India-LAC Conclave in August, 2023, which played a key role in resuming of the negotiations. Mr. Barthwal stated that the basic principle of negotiations should be understanding strengths and respecting sensitivities of each other. The modalities of negotiation may emerge from appropriate stakeholder consultations, feedback from the industry and the negotiating teams should engage in gainful and explorative approach. Mr. Rajesh Agrawal, Chief Negotiator & Additional Secretary, Department of Commerce, said that holding two rounds of negotiation within two months is itself a testimony to the willingness between both the countries to have a deeper economic cooperation. He emphasized the need for effective and fast track negotiations. Ambassador of Peru in India HE Mr. Javier Manuel Paulinich Velarde mentioned that the recent negotiations have laid down the ground work for a substantial foundation and exhibited confidence on the outcomes of negotiations towards fostering partnership. Additional Secretary, Ministry of External Affairs, Republic of India, Mr. G. V. Srinivas appreciated the idea of lessening the negotiation period. Peruvian Chief Negotiator, Mr. Gerardo Antonio Meza Grillo, Director for Asia, Oceania and Africa, Ministry of Foreign Trade and Tourism, Republic of Peru mentioned that resuming of negotiations after 2019 is significant and reflects commitment and interest of both the parties. He emphasized that the negotiating teams may show flexibility and pragmatism to reach mutual solutions. In this round of negotiations, discussions encompassed across the chapters which included Trade in Goods, Trade in Services, Movement of Natural Persons, Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Custom Procedures and Trade Facilitation, Initial Provisions and General Definitions, Legal and Institutional Provisions, Final Provisions, Trade Remedies, General and Security Exceptions, Dispute Settlement and Cooperation. Around sixty delegates together from both sides participated in the negotiations. The Peruvian delegation comprised of representatives from the Ministry of Foreign Trade and Tourism and the Ministry of Foreign Affairs of Peru. The Indian delegates comprised the officials from the Department of Commerce, Directorate General of Foreign Trade, Department of Revenue, Department for Promotion of Industry and Internal Trade and the legal and economic resource persons. Substantial convergence in the text of the agreement was achieved during the round and detailed discussions were held on the aspirations and sensitivities between both parties. Peru has emerged as the third-largest trading partner of India in Latin American & Caribbean Region. In the last two decades, the trade between India and Peru has increased from US$ 66 million in 2003 to around US$ 3.68 billion in 2023.The trade agreement under negotiations shall play a pivotal role in future collaboration in various sectors, creating avenues for mutual benefit and advancement. The next round expected in June, 2024 will be preceded by intersessional negotiations over VC to ensure that outstanding issues are resolved before the two parties meet again.
Source: PIB
At present, India is one of the best markets for Italian manufacturers, according to Marco Salvadè, president, ACIMIT (the Italian textile machinery association), which represents more than 80 per cent of Italian textile machinery production. “In 2023, India represented the third largest foreign market for the Italian textile machinery industry. The country imported Italian textile machines for a total value of €154 million,” Salvadè told Fibre2Fashion on the sidelines of an event in New Delhi yesterday. As a way forward for a stronger Indo-Italian business cooperation, a workshop on Italian textile technologies with B2B meetings on “Latest Italian Technology of Entire Value Chain from Spinning, Knitting, Weaving, Nonwovens, Dyeing and Finishing” was held at At Hyatt Regency Hotel, New Delhi. The workshop was organised by the Italian Trade Agency (ITA – the Trade Promotion Section of the Italian Embassy), in collaboration with ACIMIT, which is supporting a delegation visit of 11 well-known textile machinery manufacturers to India from April 9 to 12, 2024. The next technology showcase event is scheduled in Mumbai on April 11, 2024, at Hyatt Centric Juhu Hotel. The event presents a chance to decision-makers and experts from the textile and nonwovens industry in India to inform themselves about the latest textile machinery solutions to make their textile business and products more sustainable and efficient, according to the ITA. “The Indian economy is performing very well, so we expect that these technology workshops, organised by ACIMIT and ITA in the country can be an additional business opportunity,” said Salvadè. “Also, thanks to these two events, placed in New Delhi and in Mumbai, I am confident that Indian textile operators will have a complete overview of the latest innovations carried out by the Italian manufacturers and shown during the last ITMA in Milan. Mainly in the area of sustainability, Italian companies propose technological solutions that can reduce energy consumption and pollution in the textile production processes. These are goals pursued by all textile companies that want to be competitive in the world scenario.” Speaking to Fibre2Fashion, Antonietta Baccanari, Trade Commissioner, Italian Trade Agency (ITA), said, “As we delve into discussions regarding the digitalisation of the Italian machinery sector and its potential collaboration with our Indian counterparts, it is worth noting that we are already beginning to integrate AI into our working strategies and production systems, marking a significant step forward in our approach to innovation. “The enthusiasm displayed by India towards adopting new technological solutions, particularly AI, underscores the immense opportunities that lie ahead in this vibrant market. This initiative is specifically tailored for our ACIMIT members, providing them with a platform to showcase their innovative offerings. Reflecting on today’s discussions, it becomes evident that fostering collaboration between India and Italy in the technological advancements is paramount.” Highlighting the significance of this collaboration, it is noteworthy that according to the trade data from the Ministry of Commerce, Government of India, Italy accounts for 7 per cent of the total textile machine imports by India, and machine imports from Italy have surged by over 228 per cent from 2020 to 2023, indicating a deepening commitment and partnership with Italian companies. “The textile machinery sector holds a pivotal role in shaping India’s economic landscape and influencing global trade dynamics. Therefore, our dedication to fostering closer collaboration between our two nations remains steadfast,” added Baccanari.
Source: The Business Line
India's economic growth performance is 'good' and efforts now will be needed to sustain it, as there are concerns about the external environment, which are not quite settled, Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal said on Thursday. Sanyal noted that if the weather condition and the monsoon turns out to be favorable, then food prices will hopefully get tempered as well. This will lay out conditions that will be quite conductive for a growth momentum of 7 per cent or so, to be carried through even under somewhat uncertain global situations. "Our current economic growth performance, I would argue, (is) rather good. And the game now from here on is to be able to sustain it," he told PTI in a video interview. India's economy grew by better-than-expected 8.4 per cent in the final three months of 2023—the fastest pace in one-and-half years. The growth rate in October-December was higher than 7.6 per cent in the previous three years, and it helped take the estimate for the previous fiscal (April 2023 to March 2024) to 7.6 per cent. Recently, the Reserve Bank retained the GDP growth forecast of 7 per cent for 2024-25 financial year. "... While we are very confident of our domestic growth momentum in our economy, there are certainly concerns about the external environments, which are not quite settled," he said. Sanyal explained that exports continue to be quite weak, and there is not yet any momentum in global exports. Moreover, "very recently, there was spike in oil prices... going up to USD 91 per barrel because of tensions in the Middle East, destruction of Russian oil facilities by Ukrainian attacks and a variety of other reasons," the EAC-PM said. Asked about long-term solutions to high food prices, Sanyal said high food prices to a large extent is not a production problem, but actually a storage problem. "After all, Singapore and Dubai do not grow tomatoes and onions. Their onion and tomato prices don't go spiking in the way we have this and every year. Some vegetable or the other, onion, tomato, potato, whatever, something will go spiking off the charts," he said. Emphasising that investment in storage also means that private markets in agriculture become more vibrant and strengthened, Sanyal said, the issue can be solved by states by formulating various kinds of mechanisms for storage of vegetables. "Of course, the import and export of food material is also an issue. But yeah, but this (high) vegetable price issue... ultimately the solution to this issue is private markets and storage," he said. Asked why foreign direct investment is slowing down in India, Sanyal said it is not only happening in India, worldwide foreign direct investment has significantly come down. "But given the inquiries, we are getting the projects that are getting going, I am more than certain that the underlying momentum of FDI is very, very strong," he asserted. According to OECD data, India's share of global FDI fell from 3.5 per cent in the first nine months of 2022 to 2.19 per cent in the same period in 2023. The sharp drop of 54 per cent is much steeper than the overall global FDI inflow decline of 26 per cent in the first nine months. To a question on India's China-plus one strategy, he said what India needs to do is create conditions for certain kinds of industries to build up enough capacity. Sanyal pointed out that Apple not only moved its iPhone manufacturing facilities in India, it has also moved a large ecosystem here. "A lot of big companies are in the process of moving," he said, adding it takes a little bit of time. Responding to a question on unemployment in India, Sanyal said the fact of the matter is, there is a need to generate jobs. Emphasising that growth ultimately is the single most important solution for unemployment, he said therefore compounding this growth over the next several years is absolutely critical. Sanyal said he is not a believer that in the medium-to-long-run, there is any such thing as jobless growth. "All growth ultimately generates jobs. You can have skill mismatches. You can have all kinds of other problems, but you can not generate jobless growth over long periods of time," he opined. According to a recent International Labour Organisation (ILO) report, more than 80 per cent cent of India's unemployed workforce comprises its youth.
Source : The Hindu
Synopsis India's exports to China have seen a positive growth in 90 principal commodities, including iron ore, telecom instruments, and electronic components, in 2023, accounting for 66.7 per cent of the country's export basket. Four commodities, iron ore, cotton yarn, spices, and processed minerals, saw improvements of over $100 million in exports. As many as 90 principal commodities like iron ore, telecom instruments and electronic components exported to China have recorded a positive growth in 2023 out of the total 161 such goods shipped to the neighbouring country, according to commerce ministry data. These 90 commodities accounts for 67.7 per cent of India's export basket to China, while 71 products that have registered a negative export growth in 2023 constitute 32.3 per cent, the data showed. There are four commodities level where India has improved its export to China by more than USD 100 million in 2023. They are iron ore (216.8 per cent to USD 3.33 billion in 2023), cotton yarn (542.6 per cent to USD 611.17 million in 2023), spices (19.4 per cent to USD 132.26 million in 2023), and processed minerals (174.19 per cent to USD 129 million in 2023). For another fifteen products, the improvement in exports is in the bracket of USD 10 -100 billion. These goods include marine products, iron and steel, telecom instruments, vegetable oils, agrochemicals, paper, paper board, drug formulations, biologicals, AC, refrigeration machinery, paint, bulk minerals and ores, and processed vegetables. India's exports of telecom instruments and electronic components to China rose by 46.45 per cent and 6.75 per cent to USD 247.54 million and USD 156.55 million, respectively, in 2023, the data showed. "Indian goods have recorded strong exports to China in 2023 in spite of a significant decline in China's imports," an official said.
Source: The Economic Times
The new government to assume office after the polls should focus on land, labour and agriculture reforms, provide support to micro small and medium enterprises (MSMEs), and increase the spending on education and healthcare, R Dinesh, president, Confederation of Indian Industry (CII) told FE in an interview. He added that the current government has been able to handle geopolitical tensions “very well”. Q. What, according to you, are the key achievements of the Narendra Modi government over the last decade? A. Today India is well acknowledged globally. The reasons for that are: focus on physical infrastructure, usage of digital infrastructure on a mass scale, and building of social infrastructure. Digital infrastructure, which I call the “differentiator of India”, of this massive scale has not only resulted in better access to benefits for people, but has also built a database of information which is very useful. For instance, India is the only country, where we have the visibility of goods movement, through the e-way bill mechanism. If we get to know that a good moved between two places in 72 hours, we know what is required to be done in order to make the movement under 60 hours or even lower. We know what bottlenecks to remove, which road to build, and that directly impacts the PM Gati Shakti programme. Another aspect is our management of geopolitical challenges. I feel we have managed those challenges “very well”. During the Covid-19 time, the government spent heavily on infrastructure, rather than giving money in the hands of people. This has given us “rich dividends”. Q. What should be the focus areas for the government to assume office after the general election? A. For the industry, I would say the focus areas should be big-ticket reforms: land and labour, agriculture, support to MSMEs, and increasing the spending on education and healthcare. We expect the government to gradually increase their expenditure on education and health to 9% of the total Budget expenditure. In the case of the first two, we know that it is a challenge to implement the reforms as we need consensus of the states. One of the solutions is to look at a GST-like structure, something similar to the GST Council. Stakeholders will have issues, they will discuss, but ultimately will find a way and move on. For MSMEs, the government should introduce a rating mechanism for MSMEs, which can help in sector specific support for the MSMEs. This would also help in MSMEs securing lending from fintechs. Also, the government should create a Rs 500-1,000 crore fund to support green transition of MSMEs and speed up digital transition of MSMEs. Also, the government should support job creation and have an employment-linked incentive plan. Q. It is perceived the economic growth isn’t creating enough jobs. What is the industry’s sense on the employment situation in the country? A. CII runs a survey every quarter. The general feedback that we have got from our members is that employment is going to grow going forward. In manufacturing, jobs are created whenever fresh investment comes in. In the services sector, the employment is continuous as they keep on recruiting. H1 of FY25 is going to witness about 75% growth in employment as compared to H2 FY24. Q. Investments from the private sector, especially MSMes, have been below par. When can we expect private sector investments to pick up meaningfully? A. In the past three-four years, private capital expenditure has accounted for 36-37% of the total capex, so it has not gone down in that sense. The rate of growth of public capex has been so high that it seems private capex is not catching up. Moreover, capital utilisation in certain sectors, such as cement, steel and automobiles have reached 90% and above. Most of the other sectors have crossed 75%. So there is a need for new investments. It’s only due to geopolitical uncertainties, new investments have not taken place. But companies are ready to invest. There is a demand question too. Last year, we didn’t have a good monsoon, this year, we may have a good monsoon. These factors may result in private capex coming in. Q. How do you assess the government’s support to the EV industry, especially in the light of the new EV-policy? A. Any transition needs to be supported which the government is trying to do. But it has to be commercially viable. As we scale up, we will see private sector’s investment coming in towards the EV industry. In EV, the production side of it is now being covered through the new policy. The next step would be to support infrastructure creation, and I am sure that would happen. Q. How has the red-sea crisis hit freight costs and the logistics industry? A. Now people have accepted it, and learnt to live with it. Most shipping companies have now started taking a different route. They have built it into their costs. When a situation suddenly develops, it becomes a shock. After two-three months, people get used to it. Around 40-50% of shipping is taking a different route today. Q. Goods exports in FY24 was less than that in the previous year. What is your take on export prospects? A. A recent survey revealed around 75% of 1000-1500 overseas based companies have said that they would grow in India profitably, and grow with exports. It shows that India’s exports are going to grow significantly in the coming years, as we grow, because we are getting integrated to the global supply chains. Q. The production-linked incentives (PLI) haven’t been successful in many areas, and the disbursement of funds have been far cry from the targets set.. A. PLI is not the reason why people are going to invest. Investment will take place only on demand, but the PLI scheme makes that decision easier and quicker. Q.What is India Inc’s outlook on India’s growth for next 10 years? A. We believe, we’re on a good trajectory. We can hit $5trillion in FY27, and $7 trillion by FY30. That would mean, growing at a rate of 8-9%. Q. When do expect the RBI to start cutting rates? A. RBI has managed growth and inflation perfectly so far. The industry expects RBI to start reducing rates starting Q2 FY25.
Source: Financial Express
Synopsis In a post on X (formerly Twitter), the GST Tech said the GSTN has noticed that taxpayers are facing difficulties in filing GSTR-1 intermittently since Wednesday due to technical issues leading to slow response on the portal. The GST Network (GSTN) on Thursday said the due date for filing return for outward supplies or GSTR -1 for March will be extended till April 12. In a post on X (formerly Twitter), the GST Tech said the GSTN has noticed that taxpayers are facing difficulties in filing GSTR-1 intermittently since Wednesday due to technical issues leading to slow response on the portal. "GSTN has accordingly recommended to @cbic_india that the due date for filing of GSTR-1 for the monthly taxpayers be extended by a day ie till 12/4/24," the GST Tech said. The due date to file GSTR-1 for a given tax period is 11th day of the succeeding month in case of taxpayers filing it monthly and the 13th day of month succeeding the end of every quarter in case of taxpayers filing quarterly.
Source: The Economic Times
Synopsis India is reviewing its trade pact with Asean to address anomalies like the inverted duty structure disadvantaging local manufacturers. Measures such as production-linked incentive schemes, import tariffs, and import monitoring are in place to tackle the trade deficit. New Delhi: India has begun looking at several products where taxes on input items are higher compared to the finished goods as part of a comprehensive review of its trade pact with the 10-member Asean to correct several anomalies that have undermined domestic manufacturing. Imbalances in import duties, rules of origin, and non-tariff barriers will come in for a closer look, people familiar with the details told ET. The commerce and industry ministry have asked the industry for inputs to identify products.
Source: The Economic Times
VIETNAM HCM CITY — Textile and garment businesses are making a green push with development of eco-friendly products adapted to global fashion trends and by meeting the stringent requirements under free trade agreements the country has signed, according to industry insiders. Fashion Link JSC (Faslink), a pioneer in supplying green materials to the fashion industry since 2008, constantly researches to come up with a variety of sustainable materials for the fashion industry, including yarns made from bamboo, lotus, seashell, coconut, mint, and coffee grounds. Trần Hoàng Phú Xuân, its CEO, said the company has partnered with Singtex, one of the leading providers of eco-friendly functional textiles in Taiwan (China), to produce yarns and fabrics from coffee grounds. Faslink is the first company in the world to commercialise shirts made from coffee yarns and sells them in the domestic market. She said this high-tech yarn, made from used plastic bottles and coffee grounds, is environmentally friendly, deodorising, fast drying, and UV-resistant and has many different applications. She added that more than 40 fashion brands in the domestic market have used this sustainable material to produce millions of products. Her company has a project in collaboration with Singtex to collect coffee grounds in Việt Nam, she said, pointing out that since Việt Nam is the world’s second largest coffee exporter it could supply a huge amount of this raw material. Nguyễn Thị Tuyết Mai, general secretary of the Việt Nam Textile and Apparel Association, said: “Green transformation in the garment and textile industry is mandatory to catch up with commitments under new generation FTAs. “Việt Nam's textile industry has embarked on a transformation since 2018 with the ‘Greening Việt Nam’s Textile Sector’ programme. In this … journey, many businesses, including Faslink, have researched and launched environment-friendly fabrics made from lotus, mint, pineapple, and, especially, coffee grounds."
Huge potential market
Xuân cited a recent report by Coherent Market Insights as saying the global sustainable fashion market was worth US$7.8 billion in 2023 and is projected to reach $33.05 billion by 2030, a compounded annual growth rate of 22.9 per cent. Sustainable fashion encompasses various practices aimed at reducing environmental and social impacts, such as excessive water consumption, pollution, unethical labour practices, and the production of vast amounts of waste. Rising consumer awareness of environmental sustainability and social responsibility has caused a surge in demand for sustainable fashion alternatives. Simultaneously, stringent governmental regulations mandating sustainable practices further foster market expansion, according to the report. While many countries around the world have gone a long way in sustainable fashion, it is still in its infancy in Việt Nam, according to experts. Traditional clothing production is resource-intensive and contributes to pollution and greenhouse gas emissions. Sustainable fashion brands focus on minimising these impacts by using eco-friendly materials, reducing waste and adopting responsible manufacturing practices, they said. Phạm Chí Nhu, CEO of Coolmate, a Vietnamese menswear brand, said: “Sustainable fashion is an inevitable trend. The new generation of consumers, especially Gen Z ones, not only pays attention to design and material when choosing a fashion item but also cares a lot about the product’s story, especially its sustainability aspect.” He said coffee fabric has the advantages of cooling, quick drying, UV protection, and odor control. It is suitable for making men's clothing and is widely accepted among eco-conscious consumers. But the prices of sustainable clothing products are admittedly relatively high, making them less accessible to the masses, he said. He added that coffee grounds fibre is mainly used to make fabrics for formal clothing and not sportswear, reducing customers’ choices.Mai said: “This is the time for businesses to go green and make the digital transformation. Fashion products nowadays must not only cater to the needs of customers to dress well, but also be close to nature, protect the environment and be safe to users’ health.” To enable businesses to overcome cost barriers and promote sustainable fashion, she said policymakers need to consider tax incentives for firms involved in collecting and producing recycled and environment-friendly products.
Source: News Wires
Bangladesh’s business community has appealed to Brazil to address lingering antidumping measures on sacks, jute bags, and jute yarn, while advocating for duty-free access for readymade garments (RMG) to narrow the trade gap between the two nations. Speaking at a meeting organised by the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) and the Brazil Bangladesh Chamber of Commerce and Industry (BBCCI), Mahbubul Alam, FBCCI president stressed the need to unlock the full potential of bilateral trade by removing the hurdles. The event, titled ‘Facilitating Trade between Bangladesh and Brazil,’ aimed to streamline customs processes, enhance logistics, and establish direct shipping routes to reduce costs and time for traders and investors. Despite Bangladesh’s exports to Brazil reaching $0.17 billion in fiscal year 2022-23, imports from Brazil stood at $2.59 billion, reflecting an imbalance. Main exports to Brazil include knitwear, woven garments, jute goods, footwear, and pharmaceuticals, while key imports comprise prepared foodstuffs, textiles, iron and steel products, and machinery. Currently, a 25 per cent tariff impedes apparel exports from Bangladesh to Brazil. Both countries acknowledged potential synergies, with Bangladesh’s RMG industry poised to benefit from Brazil’s quality cotton, and Brazil seeing opportunities in Bangladesh’s pharmaceutical sector, offering affordable medicines and healthcare solutions. Highlighted sectors with significant trade potential included RMG, pharmaceuticals, healthcare, jute goods, food, and agriculture. Ahasanul Islam Titu, state minister for commerce, Paulo Fernando Dias Feres, Brazilian ambassador to Bangladesh, and Shahriar Ahmed, president of the Brazil-Bangladesh Chamber of Commerce and Industry also underlined the importance of exploring preferential or free trade agreements for mutual benefit. The meeting provided a platform for constructive dialogue, underscoring the shared commitment to enhancing bilateral trade relations and fostering economic growth for both nations.
Source: Fibre2fashion
Australian Prime Minister Anthony Albanese today announced a plan to boost domestic manufacturing and economic growth by offering aid to key industries and incentives for clean energy. He attributed the need for that to global uncertainties and disruption. The government will introduce a ‘Future Made in Australia Act’ in the next few months that will combine new and current initiatives, he told the Queensland Media Club. The initiatives will include competition reform, boosting renewables and other infrastructure, and making better use of Australian resources, he said. "This is not old-fashioned protectionism or isolationism; it is the new competition," he said without divulging the cost that is to be incurred. "This means looking at how government procurement can support small business and local manufacturing, as well as sustainability and the circular economy,” he said. Citing schemes in the United States, the European Union, Japan and South Korea that involve direct government investments, tax breaks or other incentives, the prime minister cautioned Australia must offer the same or risk losing industries. “All these countries are investing in their industrial base, their manufacturing capability and their economic sovereignty,” he said. While Australia cannot compete ‘dollar for dollar’ with the massive US economy, an approach similar to that employed by the United States would nonetheless benefit the domestic economy, he said. The prime minister’s announcement has been welcomed by several quarters, including the Smart Energy Council, the Australian Council of Trade Unions (ACTU) and Science and Technology Australia. Opposition leader Peter Dutton, however, said the plan is unachievable and is “peddling false hope”. “It is positive news that the Federal Government has plans to back its vision with a substantial policy agenda, putting renewable energy at the centre of our economic future,” Clean Energy Council chief executive Kane Thornton said. “The highlighted areas of hydrogen, green metals and advanced clean energy manufacturing and assembly are genuine opportunities for Australia to expand, grow and diversify our economy centred around clean energy and create further demand for a large and skilled clean energy workforce,” he added.
Source: Fibre2fashion
Textiles and Jute minister Jahangir Kabir Nanak recently expressed the government’s keenness to expand Bangladesh’s exports of readymade garments (RMG) and jute-made goods to Russia. Following a meeting with Russian ambassador Alexander V Mantytskiy, Nanak highlighted the potential of the Russian market for Bangladeshi products, emphasising Russia’s historical support and its ongoing cooperation in various sectors since Bangladesh’s Liberation War. Acknowledging Russia’s role in Bangladesh’s development, Nanak mentioned President Vladimir Putin’s congratulations to Prime Minister Sheikh Hasina on her consecutive terms in office. He also cited Russia’s help in constructing the Ruppur Nuclear Power plant as a testament to bilateral cooperation. Emphasising the ministry’s focus on jute and jute-made goods exports, Nanak disclosed discussions regarding organising a trade fair between the two nations to enhance economic ties. He expressed optimism about potential Russian investments in Bangladesh’s jute sector as discussions with Russian trading representatives progress. The Russian envoy echoed the sentiment of strengthening economic ties, noting the interest in importing various Bangladeshi products including readymade garment, tobacco, agro, leather, jute, and jute-made goods even as Russia aims to capitalise on the opportunity created by the departure of major companies from its market. Both sides expressed mutual interest in deepening economic cooperation. The meeting included officials from the Textiles and Jute Ministry and the Russian Embassy, signalling a collaborative effort to explore and enhance trade relations between Bangladesh and Russia.
Source: Fibre2fashion
