The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 24 JAN, 2017

NATIONAL

 

INTERNATIONAL

Textile Raw Material Price 2017-01-23

Item

Price

Unit

Fluctuation

Date

PSF

1199.55

USD/Ton

0%

1/23/2017

VSF

2420.91

USD/Ton

0%

1/23/2017

ASF

2006.52

USD/Ton

0%

1/23/2017

Polyester POY

1235.90

USD/Ton

0%

1/23/2017

Nylon FDY

3373.28

USD/Ton

0%

1/23/2017

40D Spandex

4580.10

USD/Ton

0%

1/23/2017

Polyester DTY

5519.38

USD/Ton

0%

1/23/2017

Nylon POY

1483.08

USD/Ton

0%

1/23/2017

Acrylic Top 3D

3140.64

USD/Ton

0%

1/23/2017

Polyester FDY

2151.92

USD/Ton

0%

1/23/2017

Nylon DTY

1570.32

USD/Ton

0%

1/23/2017

Viscose Long Filament

3547.76

USD/Ton

0%

1/23/2017

30S Spun Rayon Yarn

3067.94

USD/Ton

0%

1/23/2017

32S Polyester Yarn

1817.50

USD/Ton

0%

1/23/2017

45S T/C Yarn

2675.36

USD/Ton

0%

1/23/2017

40S Rayon Yarn

2239.16

USD/Ton

0%

1/23/2017

T/R Yarn 65/35 32S

3198.80

USD/Ton

0%

1/23/2017

45S Polyester Yarn

2297.32

USD/Ton

0%

1/23/2017

T/C Yarn 65/35 32S

1962.90

USD/Ton

0%

1/23/2017

10S Denim Fabric

1.34

USD/Meter

0%

1/23/2017

32S Twill Fabric

0.83

USD/Meter

0%

1/23/2017

40S Combed Poplin

1.16

USD/Meter

0%

1/23/2017

30S Rayon Fabric

0.66

USD/Meter

0%

1/23/2017

45S T/C Fabric

0.66

USD/Meter

0%

1/23/2017

Source: Global Textiles

 

Note: The above prices are Chinese Price (1 CNY = 0.14540 USD dtd. 23/01/2017)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Anti-dumping duty on nylon filament yarn, Saccharin extended by one year

The Finance Ministry has extended by one year the validity of anti-dumping duty on nylon filament yarn from China, Chinese Taipei, Malaysia, Indonesia, Thailand and South Korea. The revenue department has also extended by one year the validity of anti dumping duty on Saccharin imports from China. The anti dumping duty on both these products would be valid till January 12, 2018, the revenue department has said.

Source: Business Line

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Manmade fiber industry seeks cut in excise rate in next Budget

The Indian textile industry has been demanding a level-playing field with respect to cotton for a long time now and some rationalization is expected from budget 2017-18. The textile industry wants the next Union Budget to reduce the excise duty on manmade fibers and bring it on par with that of cotton. The argument is that garments produced through manmade fibers are primarily used by the economically weaker sections of society. The manmade fiber requirement of the Indian textile industry is expected to jump by at least five times by 2025 from what it is now. Yarns made of polyester and synthetics are in good demand. Fibers like nylon and polyester have an excise duty of 12.5 per cent while for other yarns like cotton the excise duty is negligible. The industry also wants a 20 percent excise duty subsidy on handicrafts and handloom sector goods destined for export to the US and East Europe. A long term plan to boost textile exports from India would enable India to pull ahead of China by 2020. GST will also come into the picture soon.

Source: Yarns and fibres

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Textile sector is set for robust growth, if it takes competition seriously

India is now a fast emerging market inching to reach half a billion middle income population by 2030. All these factors are good for the Indian textile industry in a long run. Even though the global economic crisis seems to be worsening day-by-day, as long as economies are emerging and growing as those in South and South East Asia, textile

The Indian textiles industry, currently estimated at around $ 108 billion, is expected to reach $ 223 billion by 2021. The industry is the second largest employer after agriculture, providing employment to over 45 million people directly and 60 million people indirectly. The Indianindustry is here to grow provided it takes competition and innovation seriously. textile industry contributes approximately 5 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production (IIP). Due to demonetisation, there was a considerable slowdown in consumer demand for apparel in December. However, there was no demonetisation impact on textile exports. There have been cash flow issues for various textile

On the other hand, newproducers but we feel the situation will improve soon. The industry is facing challenges such as the current bull run of cotton prices, the possible devaluation of the US Dollar called for by President Trump, strength of the export demand and global economic conditions. textile markets and innovation (fueled by the developments in textile chemicals & auxiliary segment) are providing new opportunities to the companies in this sector.

Budget expectations

This budget is going to be the most widely watched budget in a long time due to factors such as change in the day of the presentation to the 1st day of February, merger of the railways budget into the union budget, expected tax sops after demonetisation, etc. From the textile Indian and allied industries point of view, the government needs to boost domestic demand and reduction in income taxes would definitely help. textile exports is facing increasing competition from Bangladesh and Vietnam, which have robust government policies supporting the local textile industry. The government also needs to give much better incentives to the textiles industry especially for machinery upgradation and preferential industrial power rates.

 

Source: Business Standard

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Textile Ministry to organise NE Investment Summit in Shillong

 

The Ministry of Textiles and M/o DoNER are jointly organizing the first ever Investors Summit exclusively for NER (North Eastern Region) focusing on manufacturing in textile and allied sectors at State Convention Centre Pinewood Hotel Shillong on 29-30 January 2017 in association with FICCI and CII. The event would be an opportunity to showcase NER’s unique opportunities in textile manufacturing to the business world and usher a new era of collaboration not only for investments but also for new skills and advanced production technology. The summit is expecting attendance of above 60-70 investors including overseas investors.

 

Source: Tecoya Trend

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India looks to technical textiles as $17bn 'sunrise sector'

 

The Indian government is vigorously promoting its technical textiles industry. With measures such as tax concessions, special financial packages and allowing 100% foreign direct investment, the government is hoping to boost the "sunrise sector," which is projected to grow to 1.16 trillion rupees ($17 billion) by March next year from 736.8 billion rupees in 2014. Technical textiles are engineered fabrics with specialty fibers and functionality. They are used in sectors such as autos (seat belts, air bag and tire cord fabrics, upholstery) agriculture (greenhouse and crop covers, mulch mats, ground water management shade nets) healthcare (surgical cloth, bandages, extracorporeal devices like artificial kidneys and lungs, soft tissue implants) sports (parachutes, artificial turf) and construction (hoardings, scaffolding nets, tarpaulins). Overall, the country's textiles industry is worth $108 billion and is expected to reach $223 billion by 2021. It contributes over 14% to India's industrial production, 5% to GDP and 11% to exports earnings, and employs over 45 million people directly and 60 million indirectly. From March 2014 to March 2016, the FDI equity inflows in the textiles sector totaled $427.55 million, according to the "Textiles & Apparel Sector Achievements Report" released in November. However, there is a lack of awareness about the technical textiles segment among prospective entrepreneurs and consumers, especially those in the agriculture sector. High-technology textile products are especially useful for farmers to avoid crop wastage and reduce the use of pesticides, among other benefits. The application of technical textiles in agriculture sector "has led to increased productivity and increased income generation for our farmers," India's Textiles Minister Smriti Irani said here on Tuesday. There is potential in India to expand the use of agricultural technology and "the need of the hour is conversion of efforts," she said. She was speaking at a curtain raiser event of Technotex 2017, the 6th International Exhibition and Conference on Technical Textiles in Mumbai April 12-14. It is being jointly organized by the Ministry of Textiles and the Federation of Indian Chambers of Commerce and Industry. The theme of the three-day event is "Advantage India -- Emerging Global Manufacturing Hub for Technical Textiles," and it aims to provide innovative solutions, identify new business opportunities and create an environment congenial for growth. Players  Reliance Industries is the single largest supplier of fiberfill-based technical textiles in India, catering to over 50% of the market. In addition, it has its own line of mattresses and pillows under its Recron brand, and has diversified into other technical textile  areas, including high tenacity polyester and industrial rope, and agro-based polypropylene netting. Reliance is "benefiting from continuous value addition and branding efforts," according to a baseline survey of the technical textile industry in India. Other prominent companies in the field include Arvind (fire retardant fabrics, apparel) Nobel Hygiene (adult/incontinence diapers) Ginni Filaments (non-woven spunlace, home and medical wipes) Gujarat Raffia Industries (tents, shelters, pond and canal linings) and SRF (nylon and polyester tire cord, breathable laminated fabrics, coated flex fabrics). Schemes To facilitate higher integration of technology into manufacturing processes and end products, the Indian government allows up to 100% foreign direct investment under automatic routes without prior approval of the authorities in the sector. Several global technical textile manufacturers such as Ahlstrom, Johnson & Johnson, DuPont, Procter & Gamble, 3M, SKAPS, Kimberly Clark, Terram, Maccaferri and Strata Geosystems have begun operations in India. Other programs launched by the government include establishing centers of excellence for research into technical textiles decreasing the customs duty from 5% to 2.5% on select high-performance specialty fibers or raw materials and a 15% subsidy on capital investment subject to a ceiling of 300 million rupees for entrepreneurs over a period of five years. The government has also extended an outlay of 4.27 billion rupees to promote geotechnical textiles in its remote northeastern region for use in infrastructure such as roads, hill slope protection and efficient water usage via reservoir linings. India's textiles industry has contributed enormously to the country's growth since its independence from British rule in August 1947. The 1991 economic reforms that liberalized investment and trade accelerated the growth of the industry. India is the largest producer of jute in the world and is the second largest producer of silk and cotton. The government last year approved a special 60 billion rupee package for textiles sector with the aim of creating 10 million jobs in the next three years and giving a boost to exports. Major technical textile products produced in India are woven sacks, tire cord fabrics, sport shoe components, narrow elastic strips and fishing nets. India accounts for only 3% of technical textile production globally, while China and Europe "are the leading manufacturers," with over 75% production, according to Kavita Gupta, the country's textile commissioner.

Source: Asian Review

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India against Canada, EU bid on investment agreement at WTO

 

India has rejected an informal proposal by the EU and Canada for a multi-lateral investment pact with a provision for an investor-to-state dispute settlement (ISDS) at the World Trade Organization (WTO). “We rejected it. We want anything to do with investments to be a bilateral thing… We do not believe in making investments a subject of multilateral disputes,” commerce minister Nirmala Sitharaman said. The informal proposal was discussed at an “informal meeting” of some major WTO members — including India, China, Brazil, Japan and Australia — in Davos last week. The informally proposed ISDS is actually part of a bilateral agreement between the EU and Canada. Both the EU and Canada want other WTO members to agree to the regime proposed by them for dispute resolution at the multilateral level. Sitharaman said disputes against the government should ideally be settled by the domestic laws and courts first and only after that, an aggrieved party should appeal outside. Sitharaman said India has sought concrete work plans on a special safeguard mechanism (SSM) for developing countries to protect their farmers from a spurt in imports, and a permanent solution to the issue of its official grain procurement and food security in the country, as agreed on in the Bali ministerial.

Source: Financial Express

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India opposes EU, Canada’s proposal on investment pact

 

India and a few other countries have rejected an informal proposal made by the EU and Canada to work towards a multilateral pact on investments at the World Trade Organisation that will have an Investor-State Dispute Settlement (ISDS) mechanism built into it. “The EU and Canada have got into an investment agreement in which they have weaved in the much contentious ISDS which allows corporates to take sovereign governments to international arbitration. They now want it to be the template for a multilateral agreement. We have rejected the informal proposal completely and also insisted that it should not be considered as initiation of talks on the issue,” said Commerce & Industry Minister Nirmala Sitharaman at a press briefing on Monday. The proposal for a global investment pact, made at an informal breakfast meeting of Trade Ministers of select countries in Davos last week, was also rejected by Brazil, Japan and Argentina. “It is only after all options for settling disputes between a sovereign government and a corporate have been exhausted in domestic courts do we want to allow the issue to be taken up in international courts. It should be part of a bilateral agreement and not a multilateral agreement,” Sitharaman said. The issue of investment pacts is also set to lead to an indefinite delay in the proposed India-EU free trade agreement as the 28-member bloc is insisting that it wants a bilateral investment treaty (BIT) between the two partners to be negotiated first as the existing ones with individual members would all lapse by April this year.  “I went to ask the EU Trade Commissioner when the free trade talks could start. She said that they were at the moment keen to get the investment agreement negotiated,” she said. This means that till the Department of Economic Affairs and the EU does not negotiate a new BIT, which could take months as the EU is unhappy with the draft model BIT, talks on FTA will be stalled. Last year, New Delhi had asked all countries with which India has investment protection agreements, including the EU, to renegotiate those pacts on the basis of the new draft text of BIT.

 

The key issue

The most contentious issue in the model BIT is the proposed ISDS mechanism as it allows companies to seek international arbitration only when all domestic legal options have been exhausted.  The removal of taxation from the purview of BITs has also come in for criticism from foreign partners.

 

Source: Business Line

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No need to relax fiscal targets

 

The Indian government will present the 2017-18 Budget in a challenging environment. Apart from a busy States election calendar, there is considerable uncertainty over the impact of demonetisation on growth. Implementation of the Goods and Services Tax (GST) has been deferred for now to the second half of the year.   These factors have raised expectations that fiscal consolidation may be postponed next year. We expect a more balanced approach, with the recent gains from fiscal consolidation unlikely to be frittered away. Yet, the proceeds from a one-off revenue boost, including demonetisation, are likely to be channelled to support consumption and continue with social spending projects.

 

Focus on fiscal discipline

Despite the negative impact on growth from demonetisation, fiscal discipline will remain a priority. The Government is likely to meet the fiscal deficit target of 3.5 per cent of GDP for FY16-17, as bunched-up revenues catch up with front-loaded expenditure in the second half. We expect the Government to retain the budget deficit target of 3 per cent of GDP set by the fiscal roadmap for FY17-18. Achieving this will depend on whether nominal GDP growth for FY17-18 comes in stronger, as expected. The Fiscal Responsibility and Budget Management (FRBM) proposals provide the Government some flexibility. The FRBM committee may propose a shift in the budget deficit target from a point to a range, and the deficit target may be revised to 3.0-3.3 per cent. This could provide flexibility for more public investments to offset the recent drag on growth. The risk of a fiscal slippage in FY16-17 is low despite the budget deficit totalling 86 per cent of the full-year target in April-November 2016. Over the remaining four months, we expect revenues to catch up with spending. December and March are seasonally strong months for direct tax revenues.  Most indirect tax revenue sub-heads are running above their budgeted pace. Indirect tax collections as a percentage of total tax revenues is likely to exceed direct receipts this year. The Income Declaration Scheme (IDS), which ended last September, added an estimated ₹250 billion to revenues. There will be strong dividends of ₹660 billion from the Reserve Bank of India (RBI). Other non-tax sources, telecom spectrum collections and divestment receipts will also add to the kitty, but miss targets. Revenues will get a short-term boost from demonetisation. Over 95 per cent of the scrapped notes are reportedly back with the banks. Of the remaining 5 per cent, changes in the RBI’s balance sheet might result in a one-off dividend (of 0.1-0.2 per cent of GDP) for the government, if deemed justified. Another declaration scheme is underway with the benefits to accrue next year.

 

Spending on track

On the spending front, funding for bank recapitalisation and the pay commission are unlikely to deviate from projections. With revenues coming in higher and spending on track, FY16-17 deficit target will be met at 3.5 per cent of GDP. Unfortunately, the final deficit /GDP ratio could still be upset by the uncertain growth outlook. While the Central Statistics Office reckoned that nominal GDP growth could come in at 11.9 per cent for FY16-17, above the budgeted 11 per cent, this remains an estimate that could be downgraded later. Another challenge is the GDP deflator which is assumed to be 4.8 per cent, above the underlying CPI/WPI trends. India is likely to adhere to its roadmap for fiscal consolidation and retain its budget deficit target at 3 per cent of GDP for FY17-18. It is possible the FRBM committee will introduce some flexibility with a proposal to adopt a deficit target range of 3.0-3.3 per cent instead of a fixed target. This could slow the pace of belt tightening. As for next year’s fiscal math, indirect tax collections should continue to drive total tax revenues. Excise duties, the largest component of indirect taxes, could suffer if oil prices rally sharply and trigger fuel duty cuts. An outright cut in personal income tax rates is unlikely, but exemptions may be tweaked. Corporate tax rates are already scheduled to be lowered by 5 per cent to 25 per cent over the next three years. To provide short-term relief, a part of these cuts might be front-loaded.  The focus of expenditure will be on boosting consumption after the post-demonetisation lull. The Government announced a host of measures last month. These included relief measures for farmers, affordable housing schemes, support for women/elderly and interest sops. These are likely to amount to less than 0.1 per cent of GDP. More sector-specific measures to reverse the slump in demand are likely.  Capital expenditure has stagnated in recent years. Capital spending was cut last year to make room for higher public-sector wage payouts and banks’ recapitalisation. We expect capital spending to be raised to 1.8 per cent-2.0 per cent of GDP, with a part of these outlays kept off the books. Revenue expenditure will stay high, with interest payments and subsidies making up for a considerable chunk, along with banks’ capital needs. As a corollary to FY16-17, we expect a pick-up in the FY17-18 nominal GDP rates to provide a cushion to meet the year’s fiscal ratios, despite a slightly wider deficit in absolute terms.

 

Impact of demonetisation, GST

The impact of demonetisation will continue to reverberate in FY17-18. Much of the structural benefits of a smaller parallel economy and less illegal money will accrue over the medium term. In the near term, much of the boost to revenues will be from the one-off declaration scheme and enhanced tax scrutiny. The additional revenues from these measures may total 0.7-0.8 per cent of GDP over the next two-three years. The other areas of the Budget will focus on tax reforms, steps to support agricultural output, social sector spending, push for infrastructure investments, accelerate usage of digital payment channels and promote financial inclusion. Encouraged by its stable fiscal ratios, international rating agencies have maintained a positive outlook towards India. Wide-ranging reforms (including demonetisation), underlying growth drivers, low inflation and other improving fundamentals have been cited as the economy’s key strengths. The scope for an upgrade, however, remains low in the near term. To move up the investment grade ladder, India needs to address the ongoing stress in the banking sector, the slow implementation of reforms such as the GST, and the still-high fiscal deficits at the Centre and in the States. The door for an upgrade in 2018, however, remains open.

 

Source: Business Line

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Experts expect Union Budget to be good for many sectors

 

A 2.5 per cent gain by Nifty 50 in the run-up to the Union Budget (or till date) is an exception compared to the past wherein the market has mostly declined in the one month ahead of the Budget. This indicates that the market is looking to the Budget with optimism. And why not? India Inc has been already badly bruised by demonetisation and the resultant slowdown in most sectors. Surveys by rating agency CRISIL show automobiles, cement, steel, paper, aluminium and fertilisers had the lowest capacity utilisation — many of these are among those that have been hit hard by demonetisation. “According to the RBI’s OBICUS survey, capacity utilisation in manufacturing was 73 per cent in the quarter ended June 2016, or well below the threshold required to trigger fresh investments. Things haven’t changed materially since. As for the private sector, the appetite to invest is just not there amid high leverage and impaired balance sheets,” it said in a note. Thus, it’s time to give booster shots. Analysts at Goldman Sachs expect the Budget to be good for most sectors, particularly infrastructure, capital goods and financials.

 

Reviving consumption

Consensus view or expectation is that the government’s key focus would/should be to revive consumption (hit by demonetisation) especially rural, boost spending on infrastructure and promote growth of medium and small enterprises wherein employment opportunities have been affected due to demonetisation. “We think that spending from budgetary resources will be tilted towards boosting consumption, with rural (MNREGA, roads, housing) and social sector (education, health) being the key focus areas. Central Government spending in both these areas has been scaled back by 0.7-0.8 per cent of GDP each in the past five years. Thus, some revival is now necessary,” said Edelweiss.  Anand Rathi expects increased capital spending on infrastructure, especially on roads, power transmission, defence, low-cost housing and railways.

 

Reducing tax burden

Reviving consumption by reducing the tax burden on the common man will lead to increase in purchasing power (read disposable incomes). Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, expects increase in tax exemption limits (including 80C) and home loan interest deductions. This will be positive for sectors, such as housing finance companies, fast-moving consumer goods, retail and automobiles, according to brokerages. Boosting infrastructure spending could/should be done through spending more on labour-intensive sectors, such as roads and affordable housing. Engineering and construction companies, such as Siemens, Larsen and Toubro, Inox Wind, Suzlon, Bharat Electronics, and BEML, would be the beneficiaries.

 

Inflationary risk

However, one will have to watch for any upside risk to inflation from crude prices and a lower and slower cut in interest rates by Reserve Bank of India. Elara Capital expects RBI to ease policy rates by 50 basis points in the first half of this calendar year with 25 bps coming in the monetary policy post-Budget. There are very few sectors which are expected to be negatively impacted by the announcements in the Budget. Some of these include quick service restaurants (Jubilant FoodWorks, Westlife Development), media and technology, which could be slapped with higher service tax in alignment with the implementation of the Goods and Services Tax.  Like in the past, cigarettes could again come under the net of higher excise duty. Anand Rathi expects 8-10 per cent increase in excise on cigarettes, necessitating price increases and bearing on volumes of cigarette manufacturers, such as ITC, Godfrey Philips, and VST Industries. The party for the market and the beneficiaries will continue unless the government tinkers with long-term capital gains tax, either through imposition of tax or the holding period.

 

Source: Business Line

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India's global exports of technical textiles is just 4%, and imports stand at 3%

 

The country, which has only 2,200 technical textiles units, is expecting "larger investments through joint ventures and other opportunities to have an expansion in this sector in India," Gupta said. Internationally, most of these high-technology products are used as Mobiltech textiles for seat belts, air bags, automotive upholstery, etc., while in India it's predominantly woven fabrics and non-woven polyester materials. Gupta said the government wants to encourage the use of technical textiles in areas such as automotive and medical textiles. "Technical textiles have emerged as one of the most innovative sectors, with their ever widening applications in view of growing industrialization worldwide," Alka Panda, director general of the Bureau of Indian Standards, said. Despite the high growth rate, per capita consumption of technical textiles in India is only 1.7kg, compared to 10-12kg in developed countries. Globally, this segment makes up about 27% of the textiles industry -- in some Western countries its share is as high as 50% -- while in India it is a meager 11%. However, Panda observed that technical textiles have found a place in "Make-in-India" initiative aimed at turning the country into a manufacturing hub. "India enjoys comparative advantage in terms of skilled manpower and low cost of production over major textile producers worldwide and can attract potential investors," she said, adding that changing technology and increasing demand for quality products are set to fuel demand for high standards for this sector. To boost the standardization of technical textiles on a fast-track basis, BIS has set up separate specialized sections and committees for areas such as agricultural, industrial, geo and medical textiles. Challenges According to the "2016 Technical Textiles Top Markets Report" by the U.S. Department of Commerce's International Trade Administration, the competitive advantage India had in terms of low labor costs "has been eroding slowly" due to competition from countries like Bangladesh and Vietnam that offer a skilled and cheaper workforce. High energy and transportation costs, as well as obsolete labor laws, are some of the reasons India is shifting its focus from traditional textile manufacturing to technical textiles. "India's shift to focus on the development and production of technical textiles cannot be done with just monetary and tax incentives alone," the report says. "In order to successfully compete globally in technical textiles, there needs to be investment from the private sector."  However, it notes that entrepreneurs are reluctant to invest in the sector as marketing of technical textiles is more complex than with conventional textiles. In addition, specific raw materials, machinery and manufacturing equipment are not readily available in India, and importing these products is expensive. Besides, the sector is still in its infancy, and will take at least five years before entrepreneurs could see a return on their investment.

 

Source: Business Line

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Scotland explores avenues in textile design

 

Principal of Government Polytechnic College for Women B. Nagamani explaining the AICTE-UKERI collaborative programme in textile design in “Training programme is a celebration of Paisley pattern” A collaborative training programme in garment design between India and Scotland is opening up new vistas in contemporary fashion design. The programme, a joint project of the All India Council for Technical Education and the U.K. India Education Research Initiative (UKERI), has been taken up at the Government Polytechnic College for Women and Glasgow Kelvin College, Scotland. A team of faculty members and business development executives from the Glasgow Kelvin College are here to explore the possibilities of a continuation of the training programme and new business development proposals. Principal of the college and coordinator of the community college B. Nagamani said the team would review the curriculum of the course and also explore the possibility of continuation of this partnership. On Tuesday, the team would meet Principal Secretary, Technical Education. “This training programme is a celebration of Paisley pattern, which had originated in Kashmir in the 11th century and has been developed by U.K. weaves in Paisley, a town in Scotland. We are keen on improving our skills in textile designing and traditional surface enrichment from this college in India,’’ said Director of Business Development, Glasgow Kelvin College, Alastiar McGhee.  The training programme woven around Paisley pattern was taken up in partnership with Renfrewshire Council and the Paisley City of Culture 2021 Bid Team. An event, Textile Reflections, held in Paisley in January 2016, celebrated the outcomes of this unique Indian/Scottish programme. It all began in the summer of 2015, when staff from the Fashion Design and Manufacture programme at Glasgow Kelvin College visited the Government Polytechnic for Women in Guntur as part of a UKIERI – AICTE funded project promoting learning co-operation and skills exchange between the two colleges in fashion and garment design. The entire project has been themed along the iconic design that originated in India and was subsequently manufactured by the weavers of Paisley, a Scottish town close to Glasgow Kelvin College, in the 19th century. The design became known worldwide as the Paisley Pattern and the town of Paisley is now one of the project partners.

 

Source: The Hindu

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Rupee trims early gains down 2 paise at 68.20

 

The rupee surrendered its early strong gains against the American currency and ended marginally lower by two paise at 68.20 despite dollar outlook remaining lacklustre. Dealers attributed stray dollar buying by some banks on behalf of their clients to meet their import requirements. However calmer local equities which survived largely unhurt alongside smooth supply of dollars towards the fag-end limited any major fall. The forex market displayed a remarkable level of volatility reacting to weekend developments after US President Donald Trump’s reaffirmation of his protectionist stance sparked fresh concerns about the impact on Indian currency. Meanwhile the US dollar bore the brunt of investor displeasure and faced heavy selling pressure on the back of heightened uncertainty about the direction of US fiscal policy anant Bhadigar forex trader commented. The domestic unit resumed firmly higher at 68.05 from last Friday’s closing value of 68.18 at the Interbank Foreign Exchange (Forex) market and gained further ground to 68.02 on bouts of dollar selling. However it took a sudden reversal in mid-afternoon trade following heavy dollar demand and plunged to hit a fresh intraday low of 68.23 before settling at 68.20 showing a small loss of 2 paise or 0.03 per cent. Stretching its downtrend for the fourth straight day it has depreciated by a whopping 25 paise against the dollar. Meanwhile foreign investors have pulled out over Rs 5 100 crore from the Indian capital market so far this month on lingering concerns over growth slowdown as compared to other emerging markets. The US dollar index was trading sharply lower at 100.34 in late afternoon session. The RBI fixed the reference rate for the dollar at 68.0843 and for the euro at 72.1498. Underlying rupee sluggishness was reflected in cross-currency trade too with the British pound taking a blow plunging by 130 paise to 84.91 from weekend level of 83.61 per pound. It also fell back sharply against the euro to end at 73.16 as compared to 72.48 and also retreated against the Japanese Yen to finish at 59.99 per 100 yens from 59.12 earlier. Meanwhile country’s foreign exchange reserves rose by USD 687.9 million to USD 359.842 billion in the week to January 13. In the previous week forex reserves had fallen by USD 1.14 billion to USD 359.155 billion. Domestic equities made a modest recovery attempt on the back of buying in metal energy and FMCG shares despite early volatile trade amid weak Asian cues. The benchmark Sensex climbed 82.84 points to end at 27 117.34 while broader Nifty rose 42.15 points to 8 391.50. In the forward market premium for dollar displayed a lacklustre trade due to lack of market moving factors. The benchmark six-month premium for June was quoted at 138.25-139 paise from 137.75- 139.75 paise and far-forward December 2017 contract at 279.50-280 paise from 279-281 paise. Crude prices witnessed modest selling on Monday falling for the first time in three sessions as prospects of rising US production weighed on the market.

 

Source: Tecoya Trend

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Vietnam may rise as a strong market for Indian Cotton

 

Vietnam’s apparel industry is growing rapidly. With an export growth of 20 percent a year, the sector is expected to generate a turnover of $40 billion by 2020. There has been a large inflow of foreign investments in the country’s textile industry, which has led to an increased demand for cotton. Mainly exporting to Bangladesh, Pakistan and China, India is the world's top producer of cotton. Vietnam may emerge as a major export area for Indian cotton soon after a series of Free Trade Agreements which constitute the Trans-Pacific. According to US Department of Agriculture's report, in 2016-17, Vietnam imported 5 million bales of cotton as compared to 4.5 million bales a year before. Vietnam’s domestic production of cotton meets only one percent of demand. The country needs over 5,00,000 tons of cotton to satisfy the needs of its garment and textile manufacturers. There was seen a marginal rise in China's cotton import to 4.5 million bales in 2016-2017, as compared to 4.4 million bales which was a year ago. Surpassing China, Vietnam in 2015-16 becomes the second-largest importing country after Bangladesh, as China has a huge pile up in their cotton stocks and restrictions on its imports.

 

Source: Yarns and fibres

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Global Crude oil price of Indian Basket was US$ 53.92 per bbl on 23.01.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 53.92 per barrel (bbl) on 23.01.2017. This was higher than the price of US$ 53.46 per bbl on previous publishing day of 20.01.2017. In rupee terms, the price of Indian Basket increased to Rs. 3671.16 per bbl on 23.01.2017 as compared to Rs. 3640.09 per bbl on 20.01.2017. Rupee closed stronger at Rs. 68.08 per US$ on 23.01.2017 as compared to Rs. 68.09 per US$ on 20.01.2017. The table below gives details in this regard:

Particulars     

Unit

Price on January 23, 2017 (Previous trading day i.e. 20.01.2017)                                                                  

Pricing Fortnight for 16.01.2017

(Dec 29, 2016 to Jun 11, 2016)

Crude Oil (Indian Basket)

($/bbl)

                  53.92              (53.46)        

54.24

(Rs/bbl

                 3671.16       (3640.09)       

3691.57

Exchange Rate

  (Rs/$)

                  68.08              (68.09)

   68.06

 

Source: PIB

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Govt to set FY18 fiscal deficit target at 3.3-3.4 per cent: Reports

 

Government is likely to set fiscal deficit target in the range of 3.3-3.4 per cent of GDP for the financial year 2017-18 in the upcoming Budget, say research reports.  The Budget for the financial year 2017-18 will be presented on February 1.  "We think that the government will have to tread very carefully between the need for stimulating demand in a weak economic environment after demonetization and continuing on the path of fiscal consolidation. We expect the government to budget for a fiscal deficit target of 3.3 per cent of GDP, 30 basis points higher than planned in the government's medium-term fiscal consolidation program," Goldman Sachs said in its research report.  It said the lower reduction in fiscal deficit is to stimulate demand in a weak economic environment post demonetisation announced in early November.  An SBI internal research report, Ecowrap, has pegged in a "fiscal deficit target of Rs 5.75 lakh crores for the financial year 2017-18, at 3.4 per cent of GDP."  Fiscal deficit for the financial year 2016-17 is budgeted at 3.5 per cent.  The Goldman Sachs report said the government is likely to meet its budget deficit target of 3.5 per cent of GDP for the financial year 2016-17 due to better-than-expected tax revenue growth and via some adjustment to capital spending.  Higher revenues from duties on oil (0.3pp higher than budgeted) should help the government achieve its target for the current financial year, it said.  Additional income tax revenues from the amnesty on undisclosed income, ending in September 2017, are also likely to boost government tax revenue (0.1pp of GDP), it said.  "We think that higher-than-expected tax revenues would offset any shortfall on the non-tax side, including telecom spectrum receipts and privatization proceeds," the Goldman Sachs report said.  It expects government capital spending to be slightly lower in current financial year compared to what was budgeted - 1.5 per cent of GDP as against 1.6 per cent budgeted.  Goldman Sachs expects tax revenue to grow by over 16 per cent in the financial year 2017-18 and support government finances.  The SBI research report expects a 13 per cent growth in tax revenues (gross) in the financial year 2017-18, driven primarily by robust growth in corporation tax (28.8 per cent).

 

Source: Economics Times

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Fiscal policy and the India growth story

 

In recent months many have commented on fiscal policy and the India growth story. I shall focus on two “big” growth questions that impact fiscal policy. A single budget can do little to address these, but, in my view, this is a more productive exercise than wittering on about how the budget can provide a growth stimulus. First, the growth rate is falling. Why is growth falling? Is consumption demand falling? Then prices should fall so demand increases. But this is not happening — inflation is above the Reserve Bank of India’s target. If so, then the solution is for RBI to control inflation better. Surely, this should be the focus of policy attention, rather than crying for government to spend more? If growth is lower because private investment is lower, then why is this the case? If this is just because demand is low and there is excess capacity, then the policy action required would be the same as the previous case. But some assert that investment is low because “sentiments” are low. If so, it is difficult to see how more government spending will help. Economic policy works through the head, not the heart, and retail therapy through increased government borrowing is not good policy in my view. Some argue for “counter-cyclical” action of a “Keynesian” nature. I’m not impressed. As I have argued before,[1] no one has published a credible business cycle for India on which serious policy making can be based. India grows as fast as it can with exogenous shocks and institutional barriers impacting its growth. I do not see evidence of any exogenous shock yet, and I am not willing to call demonetisation such, as both government and the RBI assure us that any negative impact is temporary and will be counterbalanced by higher growth in the near future. Even if we accept some vulgarisation of Keynes’s general theory and apply it to India, the best way to do this would be to increase public expenditure financed by additional taxation — the “balanced budget multiplier”. This would imply more expenditure, and a bigger state. I take no exception to this recommendation though the ability of any level of the government to sharply raise taxes is historically questionable. Government could also borrow and increase spending, but here we have a problem. The central government is already running a revenue deficit, the main driver of which is a high historic interest burden. Further increasing this to boost consumption would seriously jeopardise future fiscal sustainability. If the government boosted investment it must be in real stuff — gross fixed capital formation (GFCF) — but the impact will be lagged compared to boosting government consumption spending. In any case, GFCF by government has been falling over time simply because there are very limited avenues for such spending as the repeated under-spending in departments like railways illustrates. And there is no point in borrowing to increase “investment” — to put equity into Air India or the nationalised banks, if the intention is to boost aggregate demand. The second big concern about growth is that it has not benefitted the vast majority of Indians. The core problem here is that growth is spurred by the consumption and investment of the rich; we are an economy where a downturn in auto sales is used as an indicator of economic health. There are two solutions to this problem. The first is structural, to employ more people at higher wages in more productive work and thereby increase growth. The second is to take money from the beneficiaries of growth and give to the rest. This is an old idea. The second theorem of welfare economics shows that once an economy has attained its desired growth rate, transfers to the losers financed by taxes on gainers will allow us to attain any desired income distribution. This is what fundamentally drives the “basic income” idea together with some other vague moral and ethical concerns. Many important people have commented on the feasibility of this idea from the point of view of affordability and the forthcoming economic survey will devote a chapter to this issue. But what is being missed here is the fundamental policy choice. A few people will benefit more or less permanently from India’s growth story while the rest will be helped by government intervention to get a basic income. Growth will not benefit them directly by improving their lives, but indirectly by government compensating them for losing out on India’s growth story. The discussion between the proponents and opponents of this measure, on whether it is better or worse than MGNREGS and other forms of handout, is about how to compensate the majority who do not benefit from the growth story, not on how to make them part of it. Or on how to finance better public services, health, and education to enable future generations to become part of the growth story. Inclusive growth is about enabling wider participation in the growth story, but the current if fiscal debate is about how to compensate losers using annual budgets. Since at least our Prime Minister seems to recognise the need for medium-term inclusive growth, it is time we focus more on inclusive medium term fiscal policy.

 

Source: Business Standard

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BizVibe Textile and Apparel News: Global Changes Making Waves for Industry Leader

China has long been the leader of the textile and apparel industry worldwide. As industries in other countries face change, China’s involvement with their export and import businesses is set to increase. Further details on the changing relationships between China and textile and apparel industries across the globe are some of this week’s featured stories on BizVibe. BizVibe is the world’s smartest B2B marketplace and allows users to connect with over seven million companies around the globe.

Donald Trump’s promise to slap hefty tariffs on exports from Mexico and the expected breakdown of the US-Mexico trade relationship is threatening Mexico’s textile and apparel industry. In 2015, Mexico imported USD 6.5 billion worth of textiles and apparel from the US, and Mexico expected to increase textile imports from China 80% of Mexico’s total exports go to the US. The uncertainty of its relationship with the US is causing Mexico to look for other strong trading partners. Mexico has begun importing raw materials for textile production from China rather than the US due to reduced costs and reduced tension, and their trade relationship is expected to strengthen over the coming years. The High costs threatening textile industry in Germany textile and apparel industry in Germany employs 130,000 people. Its total textile exports were valued at EUR 24 billion in 2013, and the industry focuses heavily on innovative technical textiles. However, the significantly cheaper cost of doing business in China is threatening the German industry, and imports from China and other countries have risen significantly over the past decade. This is forcing German textile and apparel manufacturers to improve upon the quality and uniqueness of their products in order to remain competitive in the market. Pakistan and China becoming competitors once more

Pakistan’s textile industry lost 500,000 jobs as of September of last year, and has faced challenges largely due to energy shortages and threats of terrorism throughout the country. However, thanks to a new government initiative, the industry is expected to recover and attract new business in the near future. This initiative is expected to create 3.5 million textile jobs and has the potential to increase Pakistan’s textile exports to $26 billion. Additionally, as Pakistan has lower wages and production costs than China, it has the potential to attract business from clients looking to move from China for cheaper sources of labour, re-establishing itself as a competitor as the industry begins to thrive.

In addition to these segments, BizVibe is also home to 50,000+ apparel and textile companies across 200+ countries, covering all sectors. The BizVibe platform allows you to discover highest quality leads and make meaningful connections in real time. Claim your company profile for free and let the business come to you. About BizVibe BizVibe is home to over seven million company profiles across 700+ industries. The single minded focus of BizVibe’s platform is to make networking easier. Over the years, we've searched far and wide to figure out how businesses connect and enable trade. That first interaction is usually fraught with the uncertainty of finding a potential partner vs. a potential nightmare. With this in mind, we've designed a robust set of tools to help companies generate leads, shortlist prospects, network with businesses from around the world and trade seamlessly.

 

Source: Business Wire

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US textile industry eager to work with President Trump

 

White House The US textile industry is eager to work with President Donald Trump to stimulate manufacturing, employment and trade. Congratulating President Trump on his inauguration as the 45th President of the US, the National Council of Textile Organizations (NCTO) said American textiles are of the highest quality and the most innovative in the world. “NCTO congratulates President Trump on his inauguration. The US textile industry is eager to partner with him to stimulate American jobs, production, and exports,” said NCTO president and CEO Auggie Tantillo. “From fibres to finished fabrics, American companies make the highest quality and most innovative textiles in the world. Given a level playing field, US textile industry is primed for expansion,” Tantillo added as he noted the sector’s comeback from the 2008 financial crisis despite intense competition from Asian suppliers that often benefit from state subsidies and cents-on-the-hour wage rates. Since the end of the recession in mid-2009, US textile production has grown by 21 per cent. Thanking outgoing President Barack Obama, Tantillo said, “US textile manufacturers are grateful for his administration’s work to improve the industry’s competitiveness.” Pointing out that President Obama created and funded a fibre and textile manufacturing innovation centre, the Advanced Functional Fabrics of America (AFFOA) and that his administration opened a direct and very sincere line of communication with NCTO on sensitive policy matters, Tantillo remarked, “The US textile sector had a legitimate and impactful seat at the policy table in recent years, a privilege greatly appreciated.”

 

Source: Fibre2fashion

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Pakistan: Textile units registered with MoTI given GST exemption

The Federal Board of Revenue (FBR) has exempted sales tax on the import of machinery (not manufactured locally) by textile units registered with the Ministry of Textile Industry from January 16, 2017 till June 30, 2018. In this connection, the FBR has amended SRO 1125(1)2011 through an SRO 36(1)/2017 issued here on Monday.

January 24, 2017). According to the SRO, zero per cent sales tax would be applicable on machinery, not manufactured locally, if imported by textile industrial units registered with Ministry of Textile Industry, as specified in Part IV of the Fifth Schedule to the Customs Act, 1969, subject to same conditions as specified therein. Following is the text of the SRO 36(1)/2017 issued here on Monday: In exercise of the powers conferred by sub-section (1), clause (b) of sub-section (2) and sub-section (6) of section 3 and clauses (c) and (d) of section 4 read with clause (b) of sub-section (1) of section 8 and section 71 of the Sales Tax Act, 1990, the federal government is pleased to direct that the following further amendments shall be made in its Notification No SRO 1125(1)2011, dated 31st December 2011, namely: In the aforesaid Notification, (a) in Table II, in column (1), after S. No.4 and entries relating thereto in columns (2), (3) and (4), the following new S. No.5 and corresponding entries relating thereto shall be inserted, namely: "5. Machinery, not manufactured locally, if imported by textile industrial units registered with Ministry of Textile Industry, as specified in Part IV of the Fifth Schedule to the Customs Act, 1969, subject to same conditions as specified therein. Respective headings 0%; and (b) after Table II, amended as aforesaid, in the conditions, in clause (ii), for sub-clause (a), the following shall be substituted, namely: "(a) in case of textile sector, for imports, raw cotton stage and onwards, and for local supplies spinning stage onwards;" 2. This notification shall be effective from the 16th day of January 2017 till the 30th day of June 2018 (both days inclusive), unless rescinded earlier.

 

Source: Business Recorder

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Germany to help develop textiles education

 

Germany is willing to establish a strong collaboration with Bangladesh to develop the country's textiles and higher education sectors, said a UGC press release. A three-member German delegation expressed the interest at a meeting with University Grants Commission (UGC) Chairman Professor Abdul Mannan at his office on Monday. The meeting was also attended, among others, by UGC members Professor Dr. Mohammad Yousuf Ali Mollah, Professor Dr. Dil Afroza Begum, Professor Dr. Md. Akhtar Hossain and Professor Dr. M. Shah Nowaz Ali, UGC secretary Dr. Md. Khaled, and Ministry of Education additional secretary Abdullah Al Hasan Chowdhury and deputy chief Rafique Ahmed Siddique. Led by Programme Coordinator of German-Bangladesh Higher Education Network on Sustainable Textiles Christian von Mitzlaff, the German team told the meeting that their government, through GIZ, is interested in working with Bangladesh in areas of textiles and higher education to enhance the skill of local workforce. Mr. Mitzlaff said Bangladesh needs high-quality skilled manpower for its socio- economic development, where Germany is willing to cooperate, especially in textiles and higher education sectors. He said GIZ is also willing to train the faculty members of the textiles universities here to enhance the quality of teaching, learning and research at tertiary level. They also stressed the need for establishing academic and research collaboration among the higher educational institutions of Bangladesh and Germany. Professor Abdul Mannan said UGC always welcomes assistance and cooperation from the donor countries for enhancement and internationalization of the country's higher education. He said teaching and learning system of textile education needs to be modernized to meet the country's need for skilled manpower.

 

Source: The Financial Express

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USA : Clemson University wins $420,000 grant for textile manufacturing innovation

 

CLEMSON — The Walmart Foundation and the U.S. Conference of Mayors announced Clemson University as one of this year’s U.S. Manufacturing Innovation Fund grant recipients for the school’s sustainable water and oil repellency fabric technology. Clemson University will receive more than $420,000 from the Walmart Foundation. 4The 2017 round of grants are focused on innovations in textile manufacturing processes. “The Walmart Foundation is making a major contribution to manufacturing in the U.S. through its continuing financial and informational support to textile and apparel technologies,” said Chris Cole, professor emerita of materials science and engineering at Clemson. “We are so grateful to the Walmart Foundation and U.S. Manufacturing Innovation Fund for investing in our research program — an area not funded by other sources and one that has many important scientific, economic and environmental implications.” Clemson University is one of six universities that will collectively receive nearly $3 million in grants from the fund this year to support research proposals that strive to create new manufacturing technologies and reduce the cost of producing goods in the U.S. with the ultimate goal of creating jobs that support America’s growing manufacturing base. The fund was formed in 2014 to provide a total of $10 million in grants to focus specifically on advancing the production or assembly of consumer products in the U.S. Clemson University was also awarded in 2016 for the school’s energy-efficient process for the dyeing of polyester fabrics. This is the third and final round of grants awarded by Walmart and the Walmart Foundation for the Fund. The other winning universities are listed here. “This type of research and development, supported by the Walmart Foundation and the U.S. Conference of Mayors, will advance textile manufacturing in the U.S. at the same time that it brings important changes for the operations and technologies of local manufacturers and restores our region’s historical role as a major player in the textile industry nationally and globally,” said Spartanburg Mayor Junie White. As part of this round of grants from the fund, the Walmart Foundation granted $422,549 to Clemson University for their proposal to create a more sustainable water and oil repellant fabric process. The process will significantly reduce costs while using no additional finishing chemistry, significantly reducing the amount of fluorochemistry required. “Advancing the production or assembly of consumer products in the U.S. is the number one goal of the Innovation Fund,” said Kathleen McLaughlin, president of the Walmart Foundation and chief sustainability officer for Walmart. “As these projects come to fruition over the next few years, we hope the research not only enables cost-effective solutions for manufacturers, but also improves the sustainability of the U.S. textile industry.” Support for the U.S. Manufacturing Innovation Fund complements Walmart’s larger commitment to help revitalize U.S. manufacturing. In January 2013, Walmart announced a commitment to buy an additional $250 billion in products that support U.S. jobs by 2023.


Source: Newsstand

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Sourcing at Magic in the US to focus on bustling African region

A major apparel and fabric sourcing trade show in North America, Sourcing at Magic connects manufacturers, fabric & trim suppliers, print design studios, and service providers all over the world to branded apparel and accessory companies, importers, designers, and product development teams to be held in the US this February. The show will highlight the bustling African region with multiple factories and seminars. It will look at how the Trump administration may impact various free trade agreements and international trade relationships. The show to also host an Africa Pavilion on the show floor with countries such as Kenya, Ethiopia, Madagascar, Mauritius, Nigeria, Rwanda, South Africa, Lesotho, Ghana, Cameroon and Uganda participating. Experts will analyze the cause and effect between supply chain and recent challenges in the global economy, such as the elimination of TPP, continued rise of costs in China and trade issues between the US and China. Over the past couple years, serious interest in African countries as a major sourcing destination for apparel has grown. With the recent renewal of the African Growth and Opportunity Act (AGOA) through 2025, which allows certain countries in sub-Saharan Africa duty-free access to the US market, the buzz around Africa has become even louder. Major companies including PVH, VF Corp, H&M, Primark and Tesco began sourcing a portion of their garments from this region a few years ago and it quickly made its way to the forefront as a region of opportunity for many apparel brands. Sourcing at Magic a four day event to be held from 20 to 23 February at the Las Vegas Convention Center in Las Vegas in the US.

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Source: Fibre2fahion

Nano Coatings for Textiles - The Future has Arrived: Infiniti Research

 

Nanopolymer research has exploded since its discovery around 10 years ago and is shaping the future of the textile coatings industry. This technology is invisible to the naked eye, yet is all around us, as it is used in many applications like cars, home furniture, and now textiles and clothing. Innovations from leading nano coating manufacturers has created unique solutions that have completely transformed textiles and nonwovens, introducing fabrics with brand new properties. The application of nanotechnology in textile manufacturing has led to the introduction of fabrics with excellent chemical resistance, mechanical strength, water repellence, antibacterial properties, and other properties that cannot be achieved by other means. Technical textiles were developed as a result of the versatility provided to the textile industry by nanotechnology. For instance, swimsuits are often made with a plasma layer, enhanced by nanotechnology, to repel water molecules and provide gliding comfort to the swimmer. The impact of nanotechnology and its entrance into the textiles industry is a big reason why the global technical textiles market is projected to grow several billion by the year 2020 according to Infiniti Research market intelligence experts. In addition to its exceptional repellence and anti-bacterial properties, nano coatings for textiles also offer other key selling points such as wrinkle-resistance, soft finishes, invisibility and easiness to clean.

 

Rapidly Changing Textile Market

China surpassed the U.S. in 2014 to become the world’s largest economy by producing over USD 17.6 trillion in terms of goods and services. However, it was only 14 years earlier the U.S. produced nearly three times as much as the Chinese. China’s emergence was bad news for leading textile coatings vendors in North America, as some of the biggest companies in the region saw their grasp on the market quickly diminish with Chinese suppliers grabbing a major chunk of the market. Now buyers have started fleeing from China to lower cost markets and many Chinese textile manufacturers are expanding their operations to ‘Belt and Road’ countries. The textile coatings and manufacturing market is constantly changing in terms innovations, trends and geographical strongholds, putting increased emphasis on the need for market intelligence. Infiniti Research offers expert market intelligence covering 100 countries in over 30 languages, providing actionable insights to help companies stay ahead of the curve and identify future markets before their competitors. Infiniti’s specialized research analysts have worked with thousands of Fortune 500 companies, including leading vendors in the textile coatings industry who were looking for new potential North American opportunities to compete with competitors in China.

 

Source: Yahoo Finance

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Trump pulls US out of Pacific trade pact

 

President Donald Trump signalled he will put trade protectionism at the heart of his economic policy, withdrawing the US from a historic Pacific trade pact and threatening to punish American companies for moving production overseas on his first working day in office. Sample the FT’s top stories for a week You select the topic, we deliver the news. Select topic Enter email address Invalid email By signing up you confirm that you have read and agree to the terms and conditions, cookie policy and privacy policy. Mr Trump said pulling out of the 12-nation Trans-Pacific Partnership, a signature initiative of predecessor Barack Obama’s “pivot” to Asia, was a “great thing for the American worker”. His signing of the TPP executive order came shortly after he warned a group of American business executives in the White House that he would place a “very major” border tax on companies that moved production overseas and export products back into the US. While Mr Trump made clear during the campaign that he would withdraw the US from the TPP, the move was a potent signal that he would use his first days in the Oval Office to plough ahead with the populist, antitrade agenda that catapulted him to the White House. Mr Trump is also expected to formally tell Canada and Mexico that his administration wants to renegotiate the North American Free Trade Agreement, which was signed by then-President Bill Clinton in 1993. John McCain, the Republican senator from Arizona, criticised the move as a “serious mistake”, highlighting how Mr Trump is pursuing an agenda at odds with decades of Republican trade policy. If you go to another country and you decide that you are going to close (a US factory) and get rid of 2,000 people or 5,000 people . . . we are going to be imposing a very major border tax on the product when it comes in, which I think is fair Donald Trump, US president “It will create an opening for China to rewrite the economic rules of the road at the expense of American workers,” Mr McCain said. “And it will send a troubling signal of American disengagement in the Asia-Pacific region at a time we can least afford it.” Japan and several other TPP signatories — which include some of the US’s closest allies along the Pacific Rim — have vowed to press ahead with the pact despite Mr Trump’s decision. Shinzo Abe, the Japanese prime minister, told his parliament on Monday he would keep pressing his new American counterpart to join the pact. “President Trump understands the importance of free and fair trade, so I’d like to pursue his understanding on the strategic and economic importance of the TPP,” Mr Abe said. Steven Ciobo, the Australian trade minister, on Monday said going forward with the remaining nations still made economic sense for Australia. “The TPP is a good deal for Australia. Even without the United States there’s a lot of merit in looking at putting into place the TPP even if it’s with the 11 other countries including Australia and not the United States,” Mr Ciobo said on Australian television. Advocates of TPP have insisted the pact is as much a geostrategic agreement as a trade deal, binding together the US with its closest Asian allies in an economic bloc that encircles a rising China, which has refused to participate in the deal and has been promoting its own regional trade arrangements. “In one fell swoop, Trump has undercut US credibility in multilateral negotiations and handed China a golden opportunity to increase its economic and geopolitical influence in Asia and beyond,” said Eswar Prasad, a former China expert at the International Monetary Fund. Related article Lawsuit filed against Trump over foreign business payments President continues to own hotels that do business with foreign governments In his inaugural speech Friday, Mr Trump argued the US had “made other countries rich while the wealth, strength and confidence of our country has disappeared over the horizon”. In his first White House meeting since the inauguration, Mr Trump put companies on notice that he intended to match his rhetoric with action, telling the gathering of chief executives he would look harshly on companies that moved production away from the US. But he also promised companies that wanted to open facilities in the US would face fewer regulations and lower taxes. During the session, which included Elon Musk of Tesla and Marilyn Hewson of Lockheed Martin, Mr Trump said he would impose a “substantial border tax” on goods that were made overseas by US companies, but would offer “advantages” to those who manufactured domestically. “If you go to another country and you decide that you are going to close [a US factory] and get rid of 2,000 people or 5,000 people . . . we are going to be imposing a very major border tax on the product when it comes in,” said Mr Trump. “So a company that wants to fire all of its people in the United States and build some factory someplace else and then thinks that that product is gonna just flow across the border into the United States, that’s not gonna happen.” Mr Trump on Monday signed two other executive orders — decrees that allow the president to circumvent Congress — including introducing a freeze on hiring federal workers with the exception of military employees. He also reinstated the “Mexico City Policy”, which bans US tax dollars from being used to fund groups that either promote or perform abortions outside the US. Among the groups to be affected by the policy would be International Planned Parenthood, a significant blow for the organisation’s foreign operations, which span 13 countries and serves tens of thousands of people. Mr Trump’s decision to reinstate the policy, which was created under Ronald Reagan’s administration but reversed by Bill Clinton, was quickly cheered by pro-life groups and members of the Christian right — a key part of Mr Trump’s base. “This is a great start to the Trump presidency,” said Kristan Hawkins, president for Students for Life of America. “This is a new day for all Americans and we are excited about reversing Planned Parenthood’s hold on Washington.”

 

Source: Indian Express

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President revamps US trade focus by pulling out of Pacific deal

 

President Donald Trump abruptly ended the decades-old US tilt toward free trade by signing an executive order to withdraw from an Asia-Pacific accord that was never ratified and promising to renegotiate the North American Free Trade Agreement (Nafta). “Great thing for the American worker, what we just did,” Trump said on Monday after signing an order withdrawing the US from the TransPacific Partnership (TPP) accord with 11 other nations. He didn’t sign any actions to direct a renegotiation of the Nafta accord with Mexico and Canada, yet he said on Sunday he would begin talks with the two leaders on modifying the accord. “We’ve been talking about this a long time,” Trump said. Trump’s trade focus fulfills a campaign promise to rewrite America’s trade policy during his first days as president. In declaring his determination to renegotiate Nafta, Trump would rework an agreement that has governed commerce in much of the Western hemisphere for 22 years. By scrapping the TPP accord negotiated by former President Barack Obama, Trump will delight many of his most fervent supporters as well as a good many Democrats, while opening an economic vacuum in Asia that China is eager to fill. Trump campaigned against the TPP and other trade deals, including Nafta, during his campaign for the White House. In a video released in November, Trump promised to exit TPP “on day one,” calling it “a potential disaster for our country.” The TPP, a 12-country deal that sought to liberalise trade between the US and Pacific Rim nations including Japan, Mexico and Singapore, was a signature piece of former Obama’s attempt to pivot US global strategy to focus on the fast-growing economies of Asia. Trump said Sunday that he’ll meet with Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto to begin discussing Nafta, which he has routinely blamed for the loss of US jobs. The newly sworn-in president praised Mexico for being “terrific” and signaled that he’s willing to work with the US’s closest neighbours. “We’re going to start renegotiating on Nafta, on immigration, and on security at the border,” Trump said at the start of a swearing-in ceremony for top White House staff. “I think we’re going to have a very good result for Mexico, for the United States, for everybody involved. It’s really very important.” Officials in Canada, which is the biggest buyer of US exports, have indicated they want to avoid getting entangled with the Trump administration’s targeting of imports from Mexico and China. The three countries are the biggest trading partners of the US.

Source: Business Standard

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