NATIONAL

• Quick estimates of IIP show upward trend for textile and clothing sector: CITI
• Diversify Indian textiles with more blended apparel
• Trade worries: Export shrink again in September, worst plunge in 26 months
• India attracted USD 22 billion of FDI flows in first half of 2018, says UN report
• Indian companies are not only investing in Africa but are also forging new people-driven partnerships: MoS Commerce Ministry  
• India International Silk Fair to kick-start from Tuesday

INTERNATIONAL

• Global Textile Raw Material Price 2018-10-15
• China imposes anti-dumping import tariffs on US, Japan
• Free curbside textile recycling service coming to Middletown　
• Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Quick estimates of IIP show upward trend for textile and clothing sector: CITI

The quick estimates of Index of Industrial Production (IIP) for August has showed an encouraging trend for the textile and clothing sector. The monthly index for textiles has increased from 116 during August 2017 to 125.1 during August 2018 showing an increase of 7.8%. However, the cumulative index has increased from 116.3 during April-Augiust 2017 to 119.7 during April-August 2018 showing an increase of 2.9%, said the Confederation of Indian Textile Industry (CITI). Similarly, the monthly index for wearing apparel has increased from 121.4 during August 2017 to 144.3 during August 2018, showing a robust increase of 18.9%. However, the cumulative index has increased from 142.6 during April-August 2017 to 144.2 during April-August 2018 showing a marginal increase of 1.1%, CITI added. Sanjay Jain, chairman, CITI, in a release said the general Index for August 2018 is 4.3% higher as compared to the level in August 2017. The cumulative growth for the period April- August 2018 over the corresponding period of the previous year stands at 5.2%.According to him, this is a positive development and bring cheers for the overall textile industry as the union textile ministry played a big role through its pragmatic approaches in the last few quarters. As said earlier, this turnout is just a beginning of a new dawn especially after industry faced back to back two big economic reforms ‘demonitisation’ and ‘GST’ implementation. The industry strongly believes that this positive trend will continue and motivate the industry attracting fresh investments. It will also encourage industry to promote ‘Make in India’ initiative as mooted by the union government.

Source: Financial Express

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Diversify Indian textiles with more blended apparel

There is an urgent need for diversifying the product basket of the Indian textiles by producing more blended apparel to meet the increasing needs of the global fashion industry, said trade advisor to textiles ministry, Aditi Rout. Each company in the supply chain should focus on improving manufacturing efficiency to compete in the international market. The exports of India's textile and clothing industry is majorly to countries where there is no free trade or any preferential trade agreement, said Rout at a meeting organised by the Indian Texpreneurs’ Federation (ITF) in Coimbatore. The exports of the textile industry have remained unchanged since five years. After calculating tariff advantage and disadvantage, it is observed that India is having tariff disadvantage in almost all top importing countries US, EU, Canada, China, Australia, Switzerland, GCC Countries, Israel and Chile, said ITF in its report titled 'Competition Analysis and Way Forward for FTAs for Indian Textile Sector' that was presented to Union government at the meeting. The tariff disadvantage ranges from 1 to 40 per cent. The study was undertaken to understand where Indian origin textile and clothing products face tariff disadvantage and what should be the way forward. Top 20 exporting countries of the world contribute more than 85 per cent in the world exports. Though India is amongst the top 10 countries, its contribution is lower than countries like Bangladesh and Vietnam. "We are working with a macro vision for ensuring overall growth of entire value chain of Indian textile industry and we are very sure that being given the appropriate support from government in line with suggestions made in our report, will surely lead to mutually beneficial engagements with all global markets," said Prabhu Dhamodharan, ITF convenor, said. "We should seek better market access under current FTA negotiations conducted by the ministry of commerce with EU, ECEP, GCC, SACU, Russia, and Canada etc. Efforts should be made to establish mutual recognisition agreements with major export markers to combat import of non-tariff barriers, which are imposed on account of quality m human protection, labelling etc.," said the report. (RR)

Source: Fibre2fashion

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Trade worries: Export shrink again in September, worst plunge in 26 months

Merchandise exports witnessed the worst contraction in 26 months in September despite a weak rupee, thanks mainly to an unfavourable base, while trade deficit eased from a near-five-year high to touch a five-month trough of $14 billion. Exports had last shrunk in March (by 0.7%).Data released by the commerce ministry on Monday showed import growth, too, slowed to 10.5% in September to almost $42 billion, against 25.4% in the previous month. This indicates that the sharp rupee depreciation may have weighed on import demand, although higher festive consumption from October could reverse the temporary slowdown in appetite, said some analysts. This could widen trade deficit again, which, in turn, will weigh on the current account deficit (CAD) as well as the rupee. The government, however, said the latest dip in exports is a “temporary out-of-trend phenomenon” and forecast rebound in October itself. Exports dropped to almost $28 billion in September, against $28.6 a year earlier when it had jumped as much as 25.7%.Services exports in August, however, continued to gain from the rupee depreciation to register a 20.6% expansion. Although export growth slowed from July’s 33%, services trade surplus rose to $6.2 billion in August, against $4.7 billion in July, showed the data released separately by the Reserve Bank of India. Despite the drop in overall exports, a rise in oil prices helped boost outbound shipment value of petroleum products by 26.8% in September from a year earlier. Other export segments that saw good expansion last month were organic and inorganic chemicals (16.9%) and plastic and linoleum (28.2%).Key sectors that witnessed sharp decline in exports in September included garments (33.6%), gems and jewellery (21.7%) and engineering goods (-4.1). As for imports, purchases of gold from overseas jumped 51.5% to $2.6 billion in September. Petroleum imports jumped 33.6%.Elevated net oil import bill had pushed up merchandise trade deficit to a 62-month high of $18 billion in July before it eased a tad to $17.4 billion in August. The CAD could rise to 3% of GDP in 2018-19, against 1.9% a year before, according to the latest estimate by the International Monetary Fund (IMF). The rupee has shed almost 14% in the past one year, over 2% in September alone. Commenting on the fall in good exports, the commerce ministry said: “Exporters continue to be resurgent, with their realised incomes having gone up by almost 10%. October 2018 figures promise to be as per the on-going six-month trend again.” Goods exports in the first half of the fiscal rose 12.5%  even outbound shipments excluding petroleum and gems and jewellery products gained 10.3%. “Thus, the growth is robust and not confined to petroleum products alone,” said the ministry. A weak rupee is supposed to brighten export prospects. However, depreciation of currencies of some peers against the dollar and the structural problems being faced by Indian exporters (high costs of logistics, raw material and wages etc) have limited the country’s ability to benefit much in the short term. Although it’s too early to gauge the impact of a sharp hike in MSPs of some crops such as cotton on exports of farm items, higher raw material prices will further dent our competitiveness. More importantly, with the US and China having targeted each other’s goods, in a fresh escalation of a global trade war, India’s exports, like many others’, could come under pressure. The IMF has forecast trade volume growth at 4.2% in 2018 before easing further to 4% next year, against 5.2% in 2017. Aditi Nayar, principal economist with Icra, said: “The sharper depreciation of the rupee relative to some emerging market peers, is likely to positively impact exports in certain sectors, including apparels, in H2 FY2019. Despite this, as well as the measures unveiled so far by the Government to curtail non-essential imports, we will not be surprised if the merchandise trade deficit rebounds above $17.5 billion in October.” Federation of Indian Export Organisations president Ganesh Kumar Gupta said despite the latest fall, merchandise exports could meet the target of $350 billion in the current fiscal, against $304 billion in 2017-18. Ravi Sehgal, chairman of enginerring goods exporters’ body EEPC India, said the drop in exports shows the rupee depreciation hasn’t quite helped. “We continue to bear high cost of raw material and interests, besides the uncertainties building around the tariff war between major economies of the world.”

Source: Financial Express

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India attracted USD 22 billion of FDI flows in first half of 2018, says UN report

The report, however, said that with the USD 22 billion FDI, India just about managed to make it to the top 10 host economies receiving the most FDI during the period. India attracted USD 22 billion of FDI flows in the first half of 2018, according to a UN report which states that the global foreign direct investment dropped by 41 per cent in the same period due to tax reforms carried out by the Trump administration. The UN Conference on Trade and Development (UNCTAD) said on Monday in its ‘Investment Trends Monitor’ report that in South Asia, India attracted USD 22 billion of FDI (foreign direct investment) flows, contributing to the subregion’s 13 per cent rise in FDI in the first half of the year. The report, however, said that with the USD 22 billion FDI, India just about managed to make it to the top 10 host economies receiving the most FDI during the period. China was the largest recipient of FDI, attracting an estimated USD 70 billion in inflows in the first half of the year, followed by the UK with USD 65.5 billion, the US with USD 46.5 billion, The Netherlands at USD 44.8 billion, Australia with USD 36.1 billion, Singapore got USD 34.7 billion and Brazil received USD 25.5 billion, it said. Global foreign direct investment fell by 41 per cent in the first half of 2018, to an estimated USD 470 billion from USD 794 billion in the same period of 2017, mainly due to large repatriations by the US parent companies of accumulated foreign earnings from their affiliates aboard following tax reforms, the report said. Overall, the global financial picture is “gloomy”, said James Zhan, UNCTAD’s Director, Division on Investment and Enterprise. The decline in global FDI is mainly owing to recent tax reforms implemented by US President Donald Trump’s administration that led to big firms in the US to bring home earnings from abroad – principally from Western European countries. Other factors have contributed to this year’s “huge difference in repatriation” of overseas profits by US multinationals, Zhan said. These include uncertainty about the detail and impact of tax reform and the potential impact of unresolved international trade disputes  such as the tit-for-tat tariffs imposed by the US and China, Zhan added. In contrast to the overall decline in foreign investment, the report highlights a 42 per cent increase in so-called “greenfield” projects to USD 454 billion. These initiatives can involve building operations in a foreign country from scratch and they are seen an indicator of future trends, Zhan said, adding that investment in this sector had been at “relatively low levels” in the same period last year. The report noted that while the fall in foreign direct investment had happened mainly in richer nations, including Ireland (down USD 81 billion) and Switzerland (down USD 77 billion), developing economies saw FDI flows declining “only slightly” in the first half of the year by four per cent to USD 310 billion compared with 2017. This includes developing Asia – down four per cent – to USD 220 billion – in the same period, driven mostly by a 16 per cent decline in investment in East Asia. Latin America and the Caribbean saw a six per cent drop in investment, amid uncertainty over upcoming elections that were offset by higher commodity prices, the report said.

Source: Financial Express

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Indian companies are not only investing in Africa but are also forging new people-driven partnerships: MoS Commerce Ministry  

NEW DELHI—  “Indian companies are not  only investing in Africa but are  also forging new people-driven  partnerships and creating jobs  which are impacting lives of  common people in these  countries  ” said Mr C R  Chaudhary  Minister of State for  Commerce and Industry  Government of India.  The Minister was  addressing the Confederation of  Indian Industry (CII) - Exim  Bank of India India-West Africa  Regional Conclave which was  organised in Abuja  Nigeria has  mapped emerging synergies and  complementarities between the  two emerging regions.  The minister appealed to all West African countries to  avail of India’s Duty-Free Tariff  Preference (DFTP) scheme to  increase their exports to India.  He expressed hope that the conclave will open “a new chapter in India-West African economic relations.”  “The CII-EXIM Bank Regional Conclave on West Africa is happening at the right  place at the right time to steer  multi-dimensional relations  between India and West Africa  onto a higher trajectory  ” he said.  “West Africa is getting greater attention from India  both  diplomatically and  economically  ” he said. He lauded ECOWAS for playing  “the role of an enabler and  catalyst in transforming  economic fortunes of the region.”  Mr M J Akbar  Minister of  State for External Affairs  Government of India highlighted  the “unprecedented economic  transformation” going on in  India and Africa  and argued for  forging a roadmap  underpinned  by a shared vision  for  intensifying India-West Africa  partnership.  “The reason why we are  here is that both India and Africa  have now set themselves on the  course of transformation  which is unprecedented in their  recent history. ECOWAS represents something  fundamental about that  transformation  ” he said.  Mr Akbar showcased pathbreaking economic reforms  and initiatives for women  empowerment taken by the Modi  government in India and called  for a more robust partnership  between India and Africa across  the spectrum.  The minister also spoke  about easing bureaucratic  procedures to enhance ease of  doing business and facilitate  trade and investment between  India and Africa.  Underlining the  importance of the India  opportunity for Nigeria and the  West African region  Mr  Okechukwu Enelamah  Minister  of Industry  Trade and  Investment  Nigeria stressed on  scaling economic partnership  with India  especially as West  African countries look to  diversify their resource-based  economies. Nigeria could learn  from India to diversify its  economy amid common  challenges faced by both  countries.  Mr Jean-Claude Kassi  Brou  President  ECOWAS  Commission underscored that  the conclave was important to  strengthen business links  between ECOWAS and Nigeria  and foster economic  development for both parties. He  said that the development in the  region offered opportunities to  investors to take advantage of a  large market  with the region  recording a population of nearly  370 million people.  Mr B N Reddy  India’s  High Commissioner to Nigeria  cited Prime Minister Narendra  Modi’s ten principles of  engagement with Africa  which  includes demand-driven  development partnership with  the resurgent African continent.  He also informed the audience of India’s plan to open 18 resident missions across Africa which  also includes many West African countries.  Forging closer tie-ups in  Small and Medium Enterprises  (SMEs) figured prominently in  discussions. Mr Muhammad  Jegana  President  Gambia  Chamber of Commerce and  Industry  called for harnessing  technology platforms to promote  Small and Medium Enterprises  (SMEs).  “We need to look at how to bring India and West Africa together to Foster FinTech and  digital economy  ” he said.  He added that there was a  huge potential of small  businesses being promoted  through e-commerce  platforms.

Source: Tecoya Trend

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India International Silk Fair to begin this week in Delhi

New Delhi : Union Minister Smriti Irani on Tuesday will inaugurate India International Silk Fair (IISF), a three-day event where over 108 exhibitors of silk and blended silk will display their produce here. “The fair will give a platform to exporters to display their products and to overseas buyers an opportunity to place orders and source their merchandise,” the textiles ministry said. “The IISF-2018 is expected to generate business of over $20 million for the small and medium enterprises (SMEs) engaged in producing silk and blended silk garments, fabrics, accessories and floor covering,” it added. Over 218 buyers from various countries will participate in the fair. Artisans from Jammu & Kashmir and north-east will showcase their unique products from their region which will be an added attraction for buyers. India is the second largest producer of silk in the world. The country’s silk industry is agriculture based and labour intensive and provides gainful employment to around eight million artisans and weavers in rural areas.

Source:  Business Line

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Global Textile Raw Material Price 2018-10-15

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14446 USD dtd. 14/10/2018). 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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China imposes anti-dumping import tariffs on US, Japan

Anti-dumping tariffs of 123.4 per cent and 41.1 per cent on the import of hydroiodic acid from the US and Japan for the next five years. (Reuters) China on Monday announced it will impose anti-dumping tariffs of 123.4 per cent and 41.1 per cent on the import of hydroiodic acid from the US and Japan for the next five years. China’s Ministry of Commerce said in a statement that the tariffs will come into effect on Tuesday and have been imposed as a result of substantial losses incurred by the national industry in the sector, reports Efe news. An initial probe – that began last October and concluded earlier this year in June – by China had found that American and Japanese companies were selling the chemical at a price lower than its costs, called dumping in trade lingo. The decision to impose the tariff came after an additional probe, that began on June 16, had confirmed that the practice was harming China’s domestic sector.

Source: Fibre2fashion

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Free curbside textile recycling service coming to Middletown　

MIDDLETOWN — City residents will soon be able to recycle unwanted textiles and small household items simply by bagging them and leaving them at the curb on their regular recycling collection day. Middletown is providing this new, free service in partnership with Simple Recycling beginning on Oct. 22. According to the U.S. Environmental Protection Agency, more than 84 percent of old clothes, shoes, belts, handbags and textile items end up in a landfill or an incinerator. On average, that works out to about 85 pounds of textile items per person each year. As a result, textiles make up more than 6 percent of all the residential and municipal trash in the United States. Solon, Ohio-based Simple Recycling provides free curbside collection and recycling of unwanted textiles and housewares to communities across the United States. Currently, the company serves nearly 2 million households across eight states, according to a press release. Prior to the launch date, Simple Recycling will send informational material to homes that receive recycling collection in Middletown. The mailers will contain free Simple Recycling bags. When cleaning out closets or disposing of unwanted items, residents can place them in the bags. If a resident runs out of bags, he or she can use regular trash bags clearly marked for Simple Recycling, the release said. Residents can then place the bags at the curb on their normal recycling collection day. Simple Recycling’s trucks will pick them up, free of charge. The company will accept a wide range of used textiles and small household items. The list of accepted items includes all types of used or new clothing, boots and shoes, belts and ties, handbags, hats and gloves, toys, towels, sheets and blankets and small kitchen appliances. The service is not meant to compete with local charities, rather, its purpose is to provide a convenient curbside collection option for residents who want it, according to the city.

Source: Chron

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Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Tajikistan’s production of textile and apparel rose by 30 per cent in the first eight months of this year making more than $89.6 million, according to the country’s ministry of energy and industry. The industrial production index in the sector rose by 29.1 per cent due to an increase in the output of cotton fibre, fabric, carpets, carpet products and hosiery. Textile exports amounted to more than $149.6 million for the said period—$ 71.6 million, or 92 per cent, more than the same period last year. Out of that, over $106.9 million is accounted for by exports of cotton fibre, a top news portal in the region reported citing a statistics agency of the country. Tajikistan is also successfully implementing the International Trade Centre (ITC) program, aimed at supporting the development of the textile and clothing industry and improving the quality management infrastructure. (DS)

Source: Fibre2fashion

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