SURAT: The first-ever benchmark study to identify the gaps and suggest measures for developing the man-made fibre (MMF) industry will be jointly undertaken by the ministry of textiles and the Synthetic Rayon Textile Export Promotion Council (SRTEPC). The ministry has approved the study titled ‘Roadmap to identify gaps and suggest measures’. The study is likely to be carried out in a month or two. The study is significant for the man-made fibre segment in India and the textile ministry and SRTEPC are working on shortlisting the competent agency for issuing request for proposals (RPF) as part of the bidding process. Talking to TOI, SRTEPC chairman Narain Agarwal said, “The study will come out with interesting facts and figures related to the MMF industry. The technical specifications of the project have been finalized and we are awaiting the commercial quotation by bidders.” Agarwal added, “Once the price quotation is approved, the study will be completed within four months.” Agarwal said the study will suggest measures and innovative ideas to cater to the consumer requirements and improve competitiveness of the Indian MMF textile both in domestic and export markets to help India emerge as the leading country in this segment. At present, Indian MMF industry produces almost everything that is of good international standard and quality and is one of the leading exporter to the European Union (EU) and the United States. India is the second largest producer of polyester and viscose in the world, but when it comes to export in MMF textile, the country ranks a distant 66. Despite enormous potential, strong fundamentals and raw material base, the MMF textile export has been stagnant at around $6 billion in the last couple of years.
Source: Times of India
PUNE: The Federation of Retail Traders Welfare Association has threatened to go on strike over the soon-to-be-implemented plastic ban in Maharashtra. The association, which boasts of 13 lakh shops and retail stores in the state directly or indirectly under it, is miffed at the absence of sufficient clarity from the government on some aspects of the ban. Association president Viren Shah told TOI that they have called a meeting on June 20, to be attended by major trade associations in the state. They will discuss and decide the strategy for the protest against the “impractical blanket ban on plastic, without even bothering about providing suitable alternatives as well as its unclear policy”. “This ban on plastic, without suitable alternatives, will cause many problems and hardships to citizens, trade and industries,” Shah said. “When plastic is allowed to wrap material at the manufacturing stage, why the same can’t be allowed at the retail level?” he added. “Sometimes, garments are not supplied by the manufacturers in plastic, but in cartons. Before the ban, retailers would wrap costly garments in plastic to protect them from dust and rain,” he said. With the four-month monsoon underway, retailers have no suitable alternative in which to pack expensive garments. “We have not been given a good enough alternative. When garments worth Rs1 lakh — like wedding clothes — are sold to customers, we don’t have a material as sturdy as plastic to wrap them in,” he said. He said kirana shops are struggling, as they have nothing to pack loose items like oil, sugar, tea powder, etc. “Paper bags are not strong enough; liquids can’t be packed in paper. Cloth bags are unaffordable,” he said. A final decision on the strike will be taken after the meeting on Wednesday.
Source: Times News Network
Prime Minister Narendra Modi on Sunday said the Indian economy grew at a healthy 7.7 per cent in the fourth quarter of 2017-18 and the challenge now is to turn this to "double digits".In his opening speech at the fourth meeting of the Governing Council of NITI Aayog, Prime Minister Modi said that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi. The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan. The Prime Minister said that schemes such as Mudra Yojana, Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts. Modi said that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes. He said that this has so far been extended to 45,000 villages in the Aspirational Districts. He said that the target is universal coverage in seven important welfare schemes: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages. The Prime Minister said that India has no shortage of capabilities, capacities and resources. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous government. Modi said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them. Earlier, the Chief Ministers and other delegates were welcomed to the meeting by Vice Chairman of the NITI Aayog, Shri Rajiv Kumar. The discussions are being moderated by Home Minister, Shri Rajnath Singh. Later, in his closing speech, Modi said that on the lines of the 115 aspirational districts identified by NITI Aayog, States can define their own parameters to identify 20 percent of the total blocks in the State as aspirational blocks. He added that it is vital to identify the "last people in the line" so that benefits of governance can reach him. Similarly, he said, social justice is an important governance objective.
Source: Business Line
India had trade deficit with as many as 10 member countries, including China, South Korea and Australia, of the RCEP grouping of 16 nations which have been negotiating a mega trade pact since November 2012. The Regional Comprehensive Economic Partnership (RCEP) bloc comprises 10 Asean group members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners - India, China, Japan, South Korea, Australia and New New Zealand. According to the commerce ministry data, India's trade deficit -- the difference between imports and exports -- with seven countries (Indonesia, Thailand, China, Japan, South Korea, Australia and New Zealand) of RCEP has in fact increased in 2017-18 as compared to the previous fiscal. The trade gap with China, Korea, Indonesia and Australia has increased to USD 63.12 billion; USD 11.96 billion; USD 12.47 billion and USD 10.16 billion in 2017-18. It was USD 51.11 billion, USD 8.34 billion, USD 9.94 billion and USD 8.19 billion respectively in the previous financial year, 2016-17. The case is same with regard to Japan, Thailand and New Zealand. However, the trade gap has dipped with the remaining three nations - Lao, Brunei, Malaysia in 2017-18. Experts have given a mixed reaction on the impact of increasing this gap on India's position in negotiating this mega free trade agreement. An industry expert stated that as this is a comprehensive trade deal, India would get greater market access in other countries not only in terms of goods, but in services and investments also. ”Trade deficit is only for goods. But this is a comprehensive pact. India would get market access in services and investment opportunities. RCEP members including Japan and South Korea are big investors in India," the expert said. On the other hand, international trade experts stated that India needs to be cautious while negotiating the pact as trade deficit is increasing with several of the RCEP member nations, which would impact domestic manufacturers. "Free trade agreements are not about only giving market access, but also getting that access in other countries. Our exports to countries like Singapore, with which India has trade surplus, is not increasing with healthy pace," said Biswajit Dhar, the professor of economics at Jawaharlal Nehru University. He said that as the strength of the domestic manufacturing is weak, India would not be able to take advantage of such free trade agreements. On trade deficit, Commerce Secretary Rita Teaotia recently stated that "when we talk about trade deficits, it's not necessarily a negative (thing for a country)". India does not have free trade agreement with two of its biggest trading partners - the US and China - but the country has highest positive balance of trade with the US, while it has highest deficit with China."We import those products which we do not produce ourselves and which we do not have it in enough quantities like crude oil, certain intermediates for electronics and edible oil...You cannot have an entire global value chain located in a single country, no country has achieved this," she had said. She had added that India will endeavour to have a "balanced" RECP trade agreement as it would cover 40 per cent of the global GDP and over 42 per cent of the world's population. The pact, negotiations for which started in Cambodian capital Phnom Penh in November 2012, aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights. Pressure is also mounting on India for early conclusion of the proposed trade pact. Member countries are looking to conclude the talks by end of this year but a lot of issues are yet to be finalised including the number of products over which duties will be eliminated. Domestic steel and other metal industries want these sectors to be kept out of the deal. Under services, India wants greater market access for its professionals in the proposed agreement. India already has a free trade pact with Association of South East Asian Nations (ASEAN), Japan and South Korea. It is also negotiating a similar agreement with Australia and New Zealand but has no such plans for China.
Source: The Economic Times
HUBBALLI: Former chief minister Jagadish Shettar alleged that the previous state government led by Siddaramaiah passed a resolution in a Cabinet meeting in March to allow big textile companies to supply school uniforms to schoolchildren studying from class 1 to 8, and snatched the rights of school development and monitoring committees (SDMCs) to procure school uniforms of their choice. Shettar told reporters here on Saturday that SDMCs, comprising of the school headmaster and parents whose children are studying in the said school, were procuring school uniforms. "They were procuring the uniform at nearby shops. They were selecting the colour of their choice. After procuring them, they would entrust local tailors, many of them women, with stitching the uniform after taking proper measurement of children. The cost of each uniform was Rs 200. This practice was smooth. However, the Siddaramaiah government bowed down to the lobby of big textile companies from various parts of the country and allowed them to supply uniform," he alleged. Shettar said the state government earmarked Rs 96.31 crore for the procurement of uniform. "In order to dissuade small companies from participating in the bidding and snatch the rights of SDMCs, the government has imposed many conditions, including turnover of not less than Rs 23 crore for supplying uniform in Bengaluru division, Rs 14.36 crore for Mysuru division, Rs 32 crore for Belagavi division and Rs 26 crore for Kalaburagi division," said Shettar. The former CM said he will urge chief minister H D Kumaraswamy to set aside the order and allow SDMCs to procure uniforms and thereby help local tailors. "Otherwise, it will be clear that the chief minister is also the part of the irregularities," he said.
On crop insurance
Shettar termed the way crop insurance units are formed in Hubballi under the Pradhan Mantri Fasal Bima Yojana as unscientific. He said that 22 villages have been included under Hubballi ULB Insurance Unit. "When some villages of the unit get less and some get sufficient rain, there will be confusion in deciding crop insurance. Hence, I urge the re-modification of the unit and include the 22 villages in three separate units," he said.
Source: Times News Network
Tamil Nadu ranks first in India in the implementation of the 'Weaver Mudra Scheme' during 2016-17 and 2017-18, state minister for handlooms and textiles OS Manian told the assembly recently. The state disbursed 18,488 Mudra loans to the tune of ₹90.12 crore during 2017-18, higher than the 17,031 loans worth ₹82.38 crore disbursed in 2016-17, he said. The Mudra scheme was started by the Indian textile ministry where large state-run banks extend concessional loans up to ₹5 lakh to handloom weavers in all states. The state government has also allocated ₹49,045 lakh for the scheme to distribute free dhotis and sarees, a news agency report quoted the minister as saying. An allocation of ₹43,644.45 lakh has been made for providing free electricity to powerloom weavers, while ₹484.05 lakh has been allocated for handloom weavers in the current fiscal, he said. (DS)
Source: Fibre2fashion
The State Government has mooted various schemes to bring major industries to the tribal villages to create job opportunities for the local youths, said Rohini R. Bhajibhakare, District Collector. The rural industries besides providing job opportunities would play a key role in the development of rural economy, Ms. Rohini said while speaking at a meeting to discuss steps for the economic development of tribal population at Karumanthurai near here recently. The meeting was brought up jointly by Tamil Nadu Agricultural University and the Indian Council of Agricultural Research to discuss the implementation of projects under the State Equitable Development Fund. The Collector said that the government had planned to commission cold storage facility in the tribal village of Karumanthurai for farmers to store milk and vegetables and market the same during the demand period. Ms. Rohini said that a team of officials led by the District Panchayat Secretary Vijayakumari had been visiting the tribal villages regularly for the past three months to ascertain the views of the local community on their needs. House-to-house survey was taken and after detailed discussion a report had been prepared on the profitable industrial ventures. The Collector said that the district administration was evincing interest in implementing all the projects sanctioned by both the Centre and the State Government. The local farmers can concentrate on mushroom cultivation, bee and cattle rearing and poultry farming. The government would create an atmosphere for these occupations and provide machinery, land and power. Besides providing subsidy linked financial assistance, soft loans would also be given for the women self-help groups.
Source: The Hindu
The garment sector in Karnataka is plagued by several issues and the concern which has been dominating of late is regarding low wages. The textile industry is one of the oldest and most labour-intensive industries in Karnataka, operating out of both the unorganised sector (ex: handlooms, handicrafts and sericulture) and the organised sector (wholesale and retail stores) and employing both skilled and unskilled labour. And this mix of the formal and the informal is a double-edged sword. “As per the State of Karnataka’s official documents, there are about 3.5 lakh garment workers,” Saroja K, the General Secretary of Garment Labour Union says. “But in reality, there are about 6 lakh workers and may be a little more than that." But while the industry seems to be large on an overall basis, it is mostly comprised of small units which are beyond the reach of labour reforms and standards set therein. Therefore, work conditions are often dismal and reports of worker abuse are plenty. “The sector creates a lot of employment but no one cares… neither the factory, brand owners and nor the government. Everyone only sees the benefits that the sector brings,” Saroja adds, in the context of the large scale employment provided by the sector and the export revenue. “As of today, the wages add up to to 8000-8500 rupees per month. Can anyone live in Bengaluru with 8500 rupees?” she asks. “60% of such wages go into house rent. How can a family manage all the other expenses - food, education, children's marriage?” Raju BC, a Union activist says, “As per Asia Floor Wage recommendations based on cost of living, the minimum wage in Bengaluru should be 23,000 rupees.” The Asia Floor Wage Alliance is an international alliance of trade unions and labour rights activists who are working together to demand that garment workers be paid a living wage. “We get paid depending on how many pieces we work on,” Muthu and Shamu, two garment factory workers say. “For us bachelors 9,000 rupees per month is good. But you should talk to ladies with families.” Speaking to the women who work in the sector, it's clear that they're left feeling helpless with the low pay. “The salary is not enough but what can we do?” Radha, a garment worker asks. “I have been working here for 10 years,” a woman worker says, hurriedly rushing off to her second job as an assistant at a clinic. Speaking of the last time the minimum wages for the garment sector was revised, Saroja says,“It was in 2014 - it brought a hike of about 1500 rupees per month. And there have been no revisions since then. Many workers are pushed to take up other odd jobs." She goes on to add, “Legally, minimum wages are to be revised every 3-5 years but this doesn’t happen. It takes a lot of time for a committee to be set up and the discussions and meetings drag on further - beyond 5 years.” “As of now a committee has been formed and the unions are demanding 18,000 rupees based on the reports of the15th conference of the International Labour Organisation and our own calculations. We have submitted various memorandums on this to the Chief Minister, the labour ministry the labour secretary, noting how difficult it is to live on low wages” Saroja says. The reason the burden of setting wages falls on the State government is the fact that labour unions aren’t recognised by the garment factories. And while such unions exist on the official documentation of garment factories, in reality the relations between unions and the management is often hostile. This hostility can become very discouraging to workers and go on to reduce the power of collective bargaining - the very reason unions were formed in the first place. “Many times, the clothing associations and the factory management submit their own counter proposals to the government saying that they cannot bear the burden of higher wages,” Saroja says. And now, a tripartite meeting is to be held with unions and workers on one side, the factory owners on the other and the government. The other issue is about the pressure the workers face to meet the pre-set per-day production targets. Speaking about this, Saroja says, “When I was a garment worker, I remember the number of times I used to bring back my full tiffin box because I couldn’t afford to take time off for lunch.” From the outside, the sector looks good, Saroja notes. “It provides a lot of employment, especially to women - 90% of the workers are women. People see them dressed neatly in their saris going into work every morning and they think the garment sector is a good employer - and at times, it is. But there are a lot of problems also. We met Deve Gowda on May 29th and have submitted our memorandum. He said he will discuss the same with the CM," Saroja says, hopefully. Apart from specifics like wage revisions and better health standards, the sector, much like the farming sector, needs a revamp where efforts need to move from the ground up. One such attempt was made in Mewat. With a revolutionary view to bring about labour standards to informal work, a project was undertaken in Mewat wherein all the stakeholders were brought together. Gap Inc. was working with exporters and local home-based embroidery workers while the Ministry of Women and Child Development (MoWCD) acted as the de-facto monitor, and Society for the Promotion of Youth and Masses (SPYM), an NGO that links them all, anchored and ran the project on a daily basis. In a paper titled ‘Relational Contracting at the Bottom of Global Garment Value Chains: Lessons from Mewat’, published in 2017 by The Indian Journal of Labor Economics, the author Meenu Tewari speaks of how to the Mewat project’s progress brought about lessons in building contracting networks even in the most informal segments at the base of global production networks. The linkages between exporters and embroidery workers built over social sector institutions which had provided personal finance and group savings over the years helped build “a well of trust that the actors (public, civic, private) could repeatedly turn to as conflicts and challenges demanded modifications and adjustments in operating practices.” Surprisingly, the experiment is also a case where the involvement of the State supported the free market rather than stifled it. In conclusion, Meenu notes “the Mewat case sheds light on how intermediation by the State - and even its material involvement early on during the 15 years of organising the communities socially - was of critical importance to providing a platform of legitimacy on which other private and collective actors could come together and collaborate… Diffusing good labour standards requires institutional continuity. The State can be the actor that can bring continuity by holding open the space for new organisational partnerships to emerge even as private supply chains and markets shift. This is especially important in countries and contexts where 90 per cent of the total employment is in the informal sector, outside the reach of both labour laws as well as the monitoring protocols and codes of conduct of buyers and private companies.” In effect, the Mewat project provided a unique example where the ideal link between the State, the private sector, the workforce and civic activists was established and conscious, continued efforts brought about a reform. It may be a noteworthy lesson for the newly elected ruling party in Karnataka.
Source: The News Minute
New Delhi: Prime Minister Narendra Modi on Sunday vowed to accelerate India’s GDP growth to more than 10% and laid down a blueprint to make development more inclusive and correct economic imbalances. Modi said the world expects India to almost double its GDP to $5 trillion soon. In his opening remarks at the fourth meeting of the governing council of policy think tank NITI Aayog, Modi said that after having recorded a 7.7% growth in the March quarter, the challenge now is to accelerate the growth rate, for which many more important steps have to be taken. The new economic growth goal follows the implemention of structural reforms such as creating a single market through the goods and services tax and a bankruptcy code to tackle bad loans. Industry executives said it is possible to have double-digit growth with the right policy support. “Right cost of energy is essential for promoting manufacturing and boosting economic growth,” said Sudhir Mathur, chief executive of Vedanta Cairn Oil and Gas. Modi’s message also indicated the priority of his government in its final year in office before national polls early next year—effective and quick implementation of all welfare schemes meant to benefit the rural population. The meeting also witnessed chief ministers from some non-BJP-ruled states seeking financial support for farm loan waiver schemes and some protesting at the mandate given to the 15th Finance Commission, which they claim favour states that have failed to control population growth. Modi laid out key areas of work to achieve an inclusive and fast-growing economy by 2022 doubling farmers’ income, development of backward districts, implementing the proposed health insurance scheme that seeks to give Rs 5 lakh annual health cover to 100 million families, immunization of children and raising nutrition levels. Modi also emphasized the need to tackle economic imbalances and suggested that all parameters of human development need to be improved upon in 115 districts identified as backward. The prime minister said gram swaraj abhiyan, a drive to reach out to every household to enrol potential beneficiaries of welfare schemes, has become a new model for implementing schemes. This has so far been extended to 45,000 backward villages. Modi said the target is universal coverage in seven key welfare schemes—LPG connection without upfront charges, power for all households, distribution of energy efficient bulbs, financial inclusion, state-backed life insurance and accident insurance schemes and immunization of all children. He said this target was recently accomplished in about 17,000 villages. In his closing remarks, Modi also called for a debate on simultaneous elections for Lok Sabha and state legislatures, which will lead to financial savings. Modi also urged states to make policies that attracts private investment in warehousing, transportation, value addition and food processing. NITI Aayog is a key pillar in the federal set up that gives states and union territories a say in deciding national priorities, unlike the erstwhile Planning Commission, which was reconstituted as NITI Aayog in 2015. Modi also assured chief ministers of central government help in dealing with the flood and landslides in certain parts of the country. Several states in North East, including Assam, Manipur and Tripura, are facing flood that caused a few deaths and damaged roads.
Source: The Mint
Bhubaneswar: Kala Bhoomi hosted a two-day programme to enhance the connection between crafts and the people. Touted as the first handloom and handicrafts museum of the state and established along the lines of the National Handicrafts and Handlooms Museum in Delhi, the museum has been set up on 13 acres. Inaugurated in March, the museum has a number of galleries to preserve and protect handloom and handicrafts of Odisha. Around 100 craft enthusiasts from the city and nearby areas took part in the workshop that concluded on Sunday. There were also live demonstrations of craft making such as pottery, tribal jewellery, painting and weaving in the workshop area. A palm leaf etching workshop by artist Dijabara Das was a highlight as the artist guided the enthusiasts on different techniques. Another workshop that allured the learners was the Ganjifa workshop led by national award-winning artist Gangadhar Maharana. "This age-old game is very addictive and is played in many sahis of Puri, but very few people from other parts of the state know about it. So, such workshops will help the artists get in touch with people and teach them the basics to garner their interest." Odisha Tourism Development Corporation provided traditional cuisine for the visitors. The museum has plans for an outreach programme with schools, colleges, and corporate houses to create awareness. Shubha Sharma, secretary of the state handloom, textiles and handicrafts department, said: "This museum is a celebration of our glorious handloom, handicraft and tribal traditions and is the perfect window for people to engage in the making process of various handloom and handicrafts."
Source: The Telegraph
With volatility in global currency markets up again, debate on rupee’s correct value has restarted. “Are foreign capital inflows India’s ‘Dutch disease’?” An astute observer of the Indian economy asked me this question a few months back. He used the phrase “Dutch disease” to refer to foreign currency inflows that keep the currency stronger than it should be, reducing the competitiveness of domestic enterprises, thereby boosting imports and hurting exports. The phrase harks back to the 1960s when new discoveries of crude oil had boosted Dutch exports for a while, making their currency appreciate sharply. This appreciation made other industries uncompetitive and they atrophied or disappeared; so when oil reserves ran out, it took a while for the Dutch economy to normalise. His underlying point is hard to argue against. For all but three years in the last three decades, India has consumed more goods and services than it produced — that is, it had a current account deficit (CAD). Foreign capital funded this excess consumption: In the form of foreign direct investment (FDI), foreign portfolio investment (FPI), or external commercial borrowings (ECB). To be clear, foreign capital is not just about getting the dollars for consumption: Often these investors bring in technology and expertise, and also provide risk capital (which India is short of) and cheaper funding for long-term investments. But the persistence of the CAD and the consequent dependence on external flows to keep the currency stable raise questions on sustainability. A point of serious concern is that the annual “rent” on foreign capital we have received thus far is already in excess of 1 per cent of GDP: Royalties and dividends paid by Indian firms to their foreign shareholders, and interest payments to foreign lenders, rose to 29 billion dollars last year. With volatility in the global currency markets up again, and the rupee already one of the weakest currencies in the world this year, the debate on the rupee’s correct value has restarted. More so because of expectations of a 20 billion dollar deficit this financial year after several years of strong surpluses: Capital inflows of 55 billion dollars could be well short of the CAD estimated to be in the range of 75 billion dollars. To keep the rupee from depreciating further, the clamour for another large dollar loan from non-resident Indians (like the one that stemmed the crisis in 2013) has already started. This may see strong demand again (most investors I met recently were almost gleefully waiting for such an announcement, indicating that this would be an attractive investment for them), underscoring the point that India has a liquidity problem (that is, a near-term shortage), and not a solvency problem (people do not doubt India’s ability to repay the dollars in the future). But this would only kick the problem away for a year or two. Is a weaker currency the solution? In the near term, India’s CAD is not very sensitive to changes in value of the currency. Half of our goods imports are things that we do not have, like crude oil, natural gas, gold, metallurgical coal, precious stones, uranium and copper. Another fourth are things that we cannot make, like cellphones, aircraft, defence equipment and capital goods (these include solar panels, robots, blast furnaces and hot rolling mills for steel). A weaker currency will only push local prices of these goods higher — while this may bring down demand for them, this would also mean a broad-based slowdown in the economy. Goods imported due to lack of cost competitiveness (like Ganesh idols, edible oil and small appliances), where a weaker rupee may help domestic manufacturers displace imports, are less than a sixth of total. Similarly, on the side of exports, nearly a third of the export value add comes from agriculture, and another third from textile, leather and two-wheelers. A minor decline in the value of the rupee thus is unlikely to drive export acceleration that will narrow the CAD meaningfully. And a big depreciation could disrupt the economy for a few years. The challenge with fiat currencies is that prices are set by crowds: A fundamentally justified level may only be discovered over a long period of time, and only in hindsight. Once panic sets in, like it did in 2013, it becomes very difficult to bring order again. In the interim, the volatility itself damages the economy, as importers and exporters hedge at inappropriate levels, savers start pushing money out of the country (advertisements for Dubai real-estate have started appearing again) or buying gold, and foreign investors hold back on their investments waiting for an attractive entry point. Crowds look at anchors, and for the rupee, the exchange rate against the US dollar is the bellwether. So long as the dollar keeps weakening against other global currencies, the rupee-dollar exchange rate does not show stress. For now, the US dollar is taking a breather, but if the dollar starts to strengthen, the rupee’s position becomes precarious. The conventional approach to protecting the currency is raising interest rates — this signals to the currency markets that the economy is willing to bear the pain of a domestic demand slowdown to protect the currency’s value. But pushing down growth for the whole economy is perhaps too high a cost. While much of public commentary stresses on oil prices, which are indeed a concern, a large part of the recent deterioration in India’s balance of payments could be because of capital flight. Sustained high imports of precious stones and pearls (where given the subjectivity in valuation, prices can be over-stated to send money out of India), and the surprising pick-up in FDI repatriation (that is, firms pulling back funds they had invested earlier) have together added more than 15 billion dollars to the balance of payments deficit over the past year. While both can have benign explanations too, one cannot help but suspect money escaping India fearing a crackdown on black money, helped along by the impact of unwinding of the Mauritius and Singapore tax treaties. Targeted mechanisms to slow these down may help. Politically unattractive as they may be, higher retail prices of petrol and diesel may also help. India is now a large part of the incremental demand for crude oil globally: If higher prices slow down demand growth, as they have done to some extent in the last two months, it may even cool oil prices. Over the medium-term, measures like a change in our energy mix, greater indigenisation of electronics and defence manufacturing, and higher agricultural exports can help the economy get over the worryingly frequent bouts of currency volatility. The writer is India Equity Strategist for Credit Suisse
Source: The Indian Express
After a surge in the area under Bt cotton last year, cotton cultivation under this high-yielding and genetically-modified seed is set to go up further this year. Acreage under Bt cotton declined significantly from over 95 per cent of the total area under cotton in 2013-14 to below 90 per cent in 2016-17. This happened due to stagnation in yield in the latest Bollgard variety and pest attacks on Bt cotton seeds. Increase in the overall area, however, benefited Bt cotton more than the conventional, hybrid and desi varieties. Of the total cotton area at 12.44 million hectares for 2017-18, the acreage under Bt was reportedly 11.07 million hectares, which works out to 89 per cent. When compared with the total area of cotton cultivation at 10.82 million hectares, the coverage under Bt cotton stood at 81 per cent (8.77 million hectares) for 2016-17. This means the acreage under. Bt cotton went up in 2017-18. “Farmers adopt Bt cotton for high yield. We expect the increase in cotton sowing under Bt to continue. In states like Rajasthan, however, farmers have chosen the desi variety, which fetched yields that are equally high under the guidance of many cotton bodies,” said Kavita Gupta, textiles commissioner, under the ministry of textiles. Gupta had announced the cotton output estimates for 2017-18 after the second Cotton Advisory Board (CAB) meeting on Saturday. The CAB lowered its cotton output estimates of 37.7 million bales to 37 million bales for 2017-18 on Saturday. This was largely attributed to pink bollworm attack on cotton crops in Maharashtra, Telangana and Andhra Pradesh. The estimated cotton output of 37 million for 2017-18, however, is higher by around 7 per cent from the previous year’s output of 34.5 million bales. Meanwhile, the textiles commissioner asked the ministry to collaborate with the ministry of agriculture to help farmers follow best practices in cotton farming that are adopted globally. Some of the proposals include intercropping of soybean with cotton, branding of cotton, production of contamination-free cotton and use of water efficient techniques for vertical growth of plants, among others. “Soybean plant can add nutrients to the cotton crop which may boost production. Hence, we have recommended to the ministry of textiles to engage the ministry of agriculture for better cotton production in the country,” said Gupta. Against the national average of 500 kg/hectare, some farmers in Punjab have yielded 2,000 kg/hectare. This is double the world average of 750 kg/hectare but similar to the world’s best production of 2,200 kg/hectare in Australia. The desi variety of cotton is also registering yields better than the national average. Gupta was also confident that the Maharashtra government’s advisory for farmers to wait for rain before sowing this kharif season is unlikely to lower cotton output this year. This is because farmers have adopted global best practices for a higher yield.
Source: Business Standard
US President Donald Trump on June 15 announced tariffs of 25 per cent on $50 billion worth imports from China that contain industrially significant technologies. This includes goods related to China’s ‘Made in China 2025’ strategic plan to dominate the emerging high-technology industries that will boost China’s growth, but hurt the United States, Trump said. China immediately responded, saying it has imposed ‘equal’ tariffs on US products. "We will immediately launch tax measures of equal scale and equal strength," the Chinese commerce ministry said in a statement on its web. The statement urged other countries to ‘take collective action’ against this ‘outdated and backwards behavior’, global news wires reported. “The United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China,” Trump said in his statement. US Trade Representative Robert Lighthizer said on the same day that the United States would begin collecting duties on 818 Chinese imports valued at $34 billion as of July 6. A second set of 284 goods valued at $16 billion will undergo an additional process of review and public comment, according to a statement released by Office of the US Trade Representative (USTR). "The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices. These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs," Trump said. The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions, the USTR said. (DS)
Source: Fibre2fashion
The clothing and footwear industry was largely spared as the Trump administration slapped tariffs on $50bn in Chinese imports, but a looming trade war could still do damage to an apparel sector that’s more global than ever. The actual shirts and shoes imported from China won’t get new tariffs, according to the full list of 1,102 product lines released on Friday, and only some of the equipment used to make them, like textile rolling-machine parts and injection moulders for shoes, were included in the final list. A host of other. Chinese machinery used by American apparel companies that had been on a preliminary tariff list like textile printing equipment, sewing machines and looms made it through unscathed. “We applaud the decision to remove most of the equipment and machinery used in our domestic textile, apparel and footwear manufacturing that were proposed by the administration in April,” said Rick Helfenbein, president of the American Apparel & Footwear Association, an industry trade group. “Levying a tariff on these items would have increased costs for domestic manufacturers across our industry, leading to higher prices and lower sales.” While much of the US apparel manufacturing industry has moved abroad to chase lower labour costs, the country still remains home to a multibillion-dollar textile industry. Many fashion labels and shoemakers, including L.L. Bean Inc, Allen Edmonds and American Giant, still make products domestically. The exclusion of most apparel equipment from tariffs has allayed fears that manufacturers would push higher costs on to consumers. But while many of the machines used for American-made apparel didn’t make the final list, the industry isn’t out of the woods yet. “We remain deeply concerned,” Helfenbein said, citing the threat of retaliation. “China previously identified almost $1bn worth of American cotton exports to China as a target, which will hurt American farmers and US textile manufacturers, and add costs to our supply chains.” “Ramping up tariffs doesn’t help bilateral trade talks reach a successful conclusion,” he added. “It’s hard to see how anyone benefits from this.” However, a trade group representing the US textile industry praised the actions, and said the tariffs didn’t go far enough. The National Council of Textile Organisations wants them applied to clothing, high-performance fabrics and home furnishings like carpet to slow the flow of Chinese imports that it claims have hurt the domestic industry. “It would have a greater deterring effect, however, if more textile and apparel end products were included,” NCTO president Auggie Tantillo said in a statement. “NCTO looks forward to working closely with the Trump administration to refine it.” President Donald Trump’s administration announced the tariffs on Chinese imports early Friday and China has vowed to retaliate. Trump pledged additional tariffs if the country follows through on the threats. The first set of tariffs will total $34bn and take effect July 6, with another $16bn still to be reviewed, the US Trade Representative said. A previous study from the National Retail Federation and the Consumer Technology Association found that imposing tariffs of $50bn on Chinese imports, coupled with any retaliation, would reduce US gross domestic product by nearly $3bn and eliminate 134,000 American jobs annually. “Tariffs are taxes on American consumers, plain and simple,” Matthew Shay, chief executive officer of the NRF, said in a statement on Friday. “These tariffs won’t reduce or eliminate China’s abusive trade practices, but they will strain the budgets of working families by raising consumer prices.”
Source: The Gulf Times
Companies and trade groups in the US and China have expressed concern over how the escalating trade spat between the world's two biggest economies could affect operations. Beijing retaliated immediately to tariffs on tens of billions in Chinese imports imposed by US President Donald Trump on Friday, igniting a trade war that threatens to cut into the pair's massive bilateral trade - potentially harming exporters and US multinationals keen on China's huge market. Top among American products hit with duties by China are agricultural exports, with soybeans, sorghum, oranges, poultry and beef included in the $34 billion in goods targeted for higher border taxes starting next month. Agricultural trader Cargill, the largest US private company, called for dialogue between Beijing and Washington so businesses, farmers and consumers would not be caught up in an all-out trade war. "Trade conflict... will lead to serious consequences for economic growth and job creation and hurt those that are most vulnerable across the globe," said Devry Boughner Vorwerk, a vice-president at Cargill. A spokeswoman for grain trader Archer Daniels Midland also said bilateral dialogue should be pursued, adding that China "continues to be an important export market for American food and agriculture".Friday's announcements cap months of sometimes fraught shuttle diplomacy between Washington and Beijing, in which Chinese offers to purchase more US goods failed to assuage Trump's grievances over a soaring trade imbalance and the country's industrial development policies. Beijing has left the door open to negotiations, even as it matched Washington with tariffs and bellicose rhetoric. "The Donald Trump administration has once again proved inconsistent and precarious," state-run newspaper China Daily said in an editorial on Saturday. US trade groups also stepped up their criticism, while some large companies such as Boeing said they were beginning to evaluate the tariffs' possible effects. Boeing garnered about 12.8 percent of its 2017 revenues from China and is frequently seen as among the more vulnerable US multinationals to a full-on trade war. "We are assessing the impact these tariffs and any reciprocal action could have on our supply chain and commercial business," said Boeing spokesman Charles Bickers. "We will continue to engage with leaders in both countries to urge a productive dialogue to resolve trade differences, highlighting the mutual economic benefits of a strong and prosperous aerospace industry," he added. The American Apparel & Footwear Association - while praising the Trump administration for dropping an earlier plan to place levies on key equipment and machinery used by the industry - said on Friday that China's retaliatory measures could harm American farmers and textile manufacturers and add costs to the industry's supply chain. "President Trump is fixated with tariffs, which he believes he can wield freely; but there are grave consequences," said AAFA president Rick Helfenbein. "Congress needs to step in now to end this dangerous obsession." Other trade groups opposing the US tariffs included the Business Roundtable and the US Chamber of Commerce. US automakers, which have targeted China as a key growth market, are also slated to be hit by the bruising tariffs. American auto giant Ford has sold 338,386 cars thus far in China in 2018, about one-third the number in the US, and had welcomed a Chinese plan to lower tariffs on auto imports. It had even planned to cut prices for its imported Lincoln vehicles. That may be in jeopardy as gas-powered and electric vehicles are due to be slapped with the border tax increase.
Source: Khaleej Times
The country’s fabric and garment industry faces a bleak future that might see thousands of workers losing jobs as well as traders closing shop. The country’s fabric and garment industry is in the intensive care unit following revelations that two local authorised suppliers of fabric and garment can only supply 50 000 metres of garment per month against a monthly requirement of 300 000 metres to the 450 retail shops in the country, notes Mr Mian Sahail, the chairperson of Trade Union Harare Chapter. Players in the sector are appealing to the government for the liberalisation of tax laws governing the importation of fabric and garment as the current tax levels of up to 60 percent are unsustainable and not competitive compared to the region and will ultimately drive them out of business that will culminate in thousands of people losing their livelihoods since they depend on the sector. President Emmerson Mnangagwa’s clarion call has been centered around economics and engagement and against this background the country’s fabric and garment industry hopes their plight will be addressed as a matter of urgency.
Source: Zimbabwe Broadcasting Corporation
Designers looking to source new textiles and innovative technologies will have a lot to experience at Sourcing at Magic, to be held during August 12-15, 2018 in Las Vegas. The show will have two new areas - the Fabric Zone and the Denim District – to inspire new collections. The Fabric Zone will have mills and design-related suppliers from around the globe. Besides having an array of premier mills and design-related suppliers from around the globe, the Fabric Zone will feature a variety of fabric collections and design services of the highest caliber. There will be prints, fibres and accessories, amidst other specialties. Taiwan’s sustainable textiles at the show will not only emphasize functional features, but also stress ergonomic cuts and fashion trends to ensure comfort, safety, and health. Attendees can explore this trend display to learn more from the Taiwan Textile Federation. Presented in a unique setting by Fashion Snoops, Square One will showcase an open environment for innovation and experimentation intended to inform, connect and inspire attendees. Community members will be able to interact and share ideas with the innovators, artists and creators and immerse themselves in the influence of the cultural trends shaping the world around them. Attendees will get front-row access to Pantone's full lineup of colour products for the fashion industry in a refined lounge on the show floor. Morphew Vintage will present their vintage archives. Attendees can discover pieces to best inspire their next shape concepts, prints and embellishments. New this August – A “master class” will be hosted on the show floor that will showcase a live demonstration recycling vintage pieces including Morphew’s in-house atelier. Sourcing at Magic will also bring back “the Denim District”, a newly defined show location that features premium denim manufacturers, indigo trend galleries, and curated samplings of the latest wash techniques from laundries around the world. This season, Ningbo China-Younger International Trading and Guangzhou Yixiang Trading are among the leading mills within the Denim District. Denim Trend Galleries will introduce product proposals from fibre companies, fabric mills, garment manufacturers, and technology developers from around the world. New technology innovations are presented for the production of denim, including unique fibres that companies have developed to increase functionality and implement sustainable washes and garment finishes. The galleries will also showcase the latest advances in machinery and chemical processing. Newly added for August is an installation by Mexican artist Michelle Ganane, who will be painting on denim jackets live on the show floor. The show will have a special screening of the documentary, 'RiverBlue' to align with the season's focus on sustainability. The documentary touches on the impact the fashion industry has on the health of the depleting river systems. After the screening, there will be a panel discussion denim featuring industry veterans Adriano Goldschmeid, Alex Penades (Jeanologia), Adam Taubenfligel (Tiarchy) and Francois Gribaud (Marithe & Francois Girbaud).
Source: Fibre2fashion
For the project SpaceTex2, German astronaut Alexander Gerst will test special cooling shirts on Earth and in space. Here, he is seen at a training session at the European Astronaut Centre in Germany in spring 2018. Alexander Gerst, a German astronaut for the European Space Agency, is about to sweat for science. Gerst, who arrived at the International Space Station as part of the European Space Agency's Horizons mission on June 6, will help conduct the first experiments to explore how the human body, clothing and climate interact, in relation to comfort, under zero-gravity conditions. Central to the study, known as SpaceTex2, will be the examination of three shirts, each with a different cooling performance, that were developed following the original SpaceTex experiments on the space station in 2014. "Now it is the moment of truth the examination of three shirts in space," Jan Beringer, a functional-textiles expert at Germany's Hohenstein Institute, which is managing the project, said in a statement. "We are all very excited about the results." Gerst will have to perform six training sessions on the ergometer (space bicycle) or the treadmill while wearing the functional shirts. These sessions will happen outside of the 2 hours of exercise space station astronauts undergo daily to prevent bone and muscle loss. Wearable sensors provided by the Institute of Aerospace Engineering at TU Dresden will pipe information about Gerst's respiratory flow, heart frequency and oxygen saturation back to Earth via a data downlink. Gerst won't have an easy time of it, according to Beringer: "Gerst has to sweat quite a lot in space in order to activate the cooling performance of the functional shirts," he said. In microgravity, sweat and heat transport away from the body very differently than on Earth. The shirts are necessary as conduits for heat exchange because sweating in space doesn't work quite the same way it does on Earth. Although an active human body will still attempt to cool itself through perspiration, sweat doesn't evaporate in the absence of gravity, and heat itself doesn't rise off the body. "There is no loss of heat due to convection when in space," Beringer said. "During physical activity, heat thus builds up quicker than on Earth. The result of this is that the core body temperature rapidly climbs to values that are too high to be healthy." Finding the right material to wick away sweat and keep a body cool is therefore vital for proper functioning in microgravity. The findings will help scientists create optimized garments for intravehicular activity which is to say, clothing worn inside the space station — according to the Hohenstein Institute, which is collaborating with the medical department of Charité University in Berlin, the German Aerospace Centre and ESA on the research. At the same time, the study could provide valuable insight into the development of functional textiles for extreme climate and physiological conditions here on Earth, such as those potentially brought about by global warming, the institute noted.
Source: Space.com
Digital textile printing sector to grow by 20% by 2020. The digital textile printing sector is expected to have a compound annual growth rate (CAGR) of 20 per cent by 2020, while the overall textile printing sector may grow at 2 per cent (CAGR) during the same period. The total textile printing volume is over 30 billion square metre per year, and digital printing had a share of slightly above 3 per cent in 2017. The need for more efficiency in textile printing is one of its key drivers. This is reinforced by shorter reaction times and higher flexibility throughout the entire supply chain of textiles. Digital printing offers different design options and a significant reduction of waste. It is not only economical, but also more relevant in terms of being environment-friendly, said Reto Simmen, CBO, Mouvent AG, while speaking to Fibre2Fashion. Mouvent is the digital printing competence centre of the Bobst Group and its printing technology enables digital printing on any substrate including machines for label and textile printing. When asked about the latest innovations in digital textile printing, Simmen said, “Improving print quality and performance in terms of effective output are the key developments in digital textile printing. This is precisely where the Mouvent TX801 offers a clear advantage in the market.” He also believes that Industry 4.0 will offer a wide range of opportunities to the digital textile printing industry. “As a business born in the digital world and in the age of Industry 4.0, we will not only explore these opportunities, but ensure that it is an integral part of our product and business development,” added Simmen. Mouvent plans to continue developing a vast product portfolio for the different digital printing markets and roll out its products worldwide. (KD)
Source : Fibre2fashion
Electronic textiles could allow a person to control household appliances or computers from a distance simply by touching a wristband or other item of clothing something that could be particularly helpful for those with limited mobility. Now researchers, reporting in ACS Nano, have developed a new type of e-textile that is self-powered, highly sensitive and washable. For more information see the IDTechEx reports on e-textiles and stretchable and conformal electronics. E-textiles are not new, but most existing versions have poor air permeability, can't be laundered or are too costly or complex to mass-produce. Jiaona Wang, Hengyu Guo, Congju Li and coworkers wanted to develop an E-textile that overcomes all of these limitations and is highly sensitive to human touch. The researchers made a self-powered triboelectric nanogenerator by depositing an electrode array of conductive carbon nanotubes on nylon fabric. To make the E-textile washable, they incorporated polyurethane into the carbon nanotube ink, which made the nanotubes firmly adhere to the fabric. They covered the array with a piece of silk and fashioned the textile into a wristband. When swiped with a finger in different patterns, the E-textile generated electrical signals that were coupled to computers to control programs, or to household objects to turn on lights, a fan or a microwave from across the room. The E-textile is breathable for human skin, washable and inexpensive to produce on a large scale, the researchers say. The authors acknowledge funding from the Beijing Natural Science Foundation, theNational Natural Science Foundation, National Key R&D Project from Minister of Science and Technology, the Programs for Beijing Science and Technology Leading Talent, the Beijing Hundred, Thousand and Ten Thousand Talent Project, the General Program of Science and Technology Development Project of Beijing Municipal Education Commission of China, Beijing Institute of Fashion Technology and the "Thousands Talents" Program for Pioneer Researcher and His Innovation Team.
Source: The Printed Electronics World
