The Union textile ministry is working on a way to harmonise its export incentives with the World Trade Organization (WTO) guidelines. Currently, the government offers incentives of two to four per cent under the Merchandise Exports from India Scheme (MEIS). In addition to production incentives such as interest subvention and the Technology Upgradation Fund Scheme. These incentives have been challenged at the WTO by the American government. One contention of critics is that India’s $3 trillion economy is quite unlike those of smaller countries in this region, such as Bangladesh, Vietnam or Pakistan, that require external incentives to compete in global markets. A WTO committee is reportedly examining the issue. “The government is in the process of putting in place alternative schemes to promote export, which will improve the competitiveness of Indian products. These will replace schemes such as MEIS, the Export Promotion Capital Goods scheme, 100 per cent export oriented units, Special Economic Zones, etc. We have been given to understand that the level of support will not in any way be lowered in the alternative scheme,” said Ujwal Lahoti, chairman,TEXPROCIL overseas. The Cotton Textile Export Promotion Council (Texprocil) under the ministry of commerce has engaged a consultancy firm, Ikdhvaj Advisers, to study alternative schemes which could be recommended. A committee has been formed for this. It has economist Veena Jha, Harsha Vardhana Singh (a former deputy director general at WTO and Jayant Dasgupta, a former ambassador to WTO. Their study will cover the entire value chain in the sector. “The alternative scheme is set to address three broad areas. First, it should be linked with employment generation. Second, it should formalise the economy. Third, it should be a more acceptable concept than free-on-board value. The committee is set to give its report by next week,” said Siddhartha Rajagopal, executive director at Texprocil. The idea is to devise schemes that cannot be challenged due to multiple interpretations by countries on the possible benefits to exporters. World trade in textile and clothing grew in 2017 by nearly four per cent over the previous year, to $756 billion. The growth in 2018 is expected to be similar. India registered 5.4 per cent growth in the sector last year, to $37.4 billion. Its share in world trade in textile and clothing this year is estimated at around five per cent. Our export is a seventh of China’s.
Source: Business Standard
The new simplified GST return forms will be rolled out from April 1, 2019, Revenue Secretary Ajay Bhushan Pandey said Tuesday. He exuded confidence that the government will achieve the budgeted target for Goods and Services Tax (GST) collection and said the revenue department is getting inputs about entities which are evading taxes. In the first eight months (April-November) of the current fiscal, the government has mopped up over Rs 7.76 lakh crore from GST. The 2018-19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore. "We are short by Rs 4,000 crore this month (November). To arrive at any conclusion we have to have some more months' data. But we are confident that we will be able to achieve our target. Our monthly target is around Rs 1 lakh crore. This we want to increase to Rs 1.10 lakh crore," Pandey said. GST collection in November was Rs 97,637 crore. Speaking to reporters on the sidelines of the Directorate of Revenue Intelligence (DRI) Foundation Day, the secretary said the refund process is being further streamlined to make it completely online and taxpayer friendly. When asked about the rollout of the simplified return forms, Pandey said, "we are targeting from April 1".In July, the Central Board of Indirect Taxes and Customs (CBIC) had put up in public domain draft GST return forms 'Sahaj' and 'Sugam' and sought public comments. These forms would replace GSTR-3B (summary sales return form) and GSTR-1 (final sales returns form). Pandey further said the next meeting of the GST Council, chaired by Union Finance Minister and comprising state counterparts, will be held this month.
Source: Economic Times
Considering that a full-fledged US-China trade war has been one of the key concerns for Indian firms, the rise in new export orders is welcome Business activity in India’s manufacturing sector increased in November, courtesy a surge in new orders. As a result, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose to an 11-month high of 54 in November from 53.1 in October. A reading above 50 indicates expansion, while one below that threshold points towards a contraction. As per the survey, new orders expanded at the second-fastest rate in over two years, only slower than that seen in December 2017. Further, the expansion in total new orders was supported by greater sales to international markets. Growth of new export work quickened to the fastest in just under four years, as producers reportedly received bulk orders from clients in key export destinations, said the survey report. Considering that a full-fledged trade war has been one of the key concerns for Indian companies, the rise in new export orders is welcome. However, the key question is whether this will sustain, given that the US and China have agreed to defer additional tariffs only temporarily. As for input prices, they moderated in November and increased sales helped companies raise output prices. This is likely to provide some respite to the operating margins of manufacturers, who have been reeling under cost pressures. Meanwhile, business sentiment among Indian manufacturers improved from October’s 20-month low, with companies forecasting better market conditions in the coming 12 months. “The relatively weak demand environment seen earlier in the year showed signs of abating, with clients unfazed by another round of increases in output prices and placing more orders regardless. Correspondingly, goods producers rebuilt raw material stocks in order to guard against possible delivery delays and fulfil contracts. Manufacturers further drew down their finished goods stocks to meet demand. This, coupled with improved business sentiment, should ensure that production continues to rise at a robust clip as we head towards 2019,” said Pollyanna De Lima, principal economist at IHS Markit and author of the report.
Source: Live Mint
Welcoming the easing of US-China trade tensions, the Federation of Indian Chambers of Commerce and Industry (FICCI) has said that India should play a key role in bringing together all countries to the discussion table for making reforms in the multilateral trading platform—the World Trade Organization (WTO), as agreed at the recent G20 meeting. The escalating tensions between the two major trading nations in the world—the US and China—has been a cause of deepening concern in terms of its adverse impact on the financial markets across the world and also the economy, a FICCI press release said. In such a situation, the encouraging signals from the US President Donald Trump and Chinese President Xi Jinping’s meeting in Argentina have already initiated the process that, in all probability, will succeed in defusing the impending global trade war which threatened to impact world trade in a major way, the release added. “The very fact that no additional tariffs will be imposed by the US and both sides will engage in negotiations, is a big relief for other trading nations, including India. Also, with the G20 nations agreeing for the required reforms in the multilateral trading platform WTO, India’s role in this exercise will be critical in bringing together all the countries to the discussion table for finding a workable solution,” said FICCI president Rashesh Shah. “As the country (India) will now be hosting the G20 summit in 2022, it can play an important role in helping the positive results of the Argentina meeting deliver concrete results, going ahead,” he added. (RKS)
Source: Fibre2fashion
New Delhi : The tension within the Organisation of the Petroleum Exporting Countries (OPEC) means more flexibility for big importers like India and China in negotiating deals. But, it also raises concern about changing dynamics and how Russia will play the game, said an industry player. Qatar’s exit from OPEC sends a clear signal that the powerful oil cartel is getting disintegrated. But, does the tension within OPEC mean good news for big importers like India and China? Will it bring down the prices or make it a more competitive market? On December 3, a statement from OPEC said that the OPEC Secretary General, Mohammad Sanusi Barkindo, has received a letter from Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, giving notice of its intention to withdraw its membership from the cartel with effect from January 1, 2019. For importers like India, shaking up of the oil cartel means more room for negotiations based on bilateral relations, which would also result in tougher bargains on pricing. Prabhat Singh, CEO and Managing Director, Petronet LNG, said: “The scene in the global market is such that most want to produce more, but with OPEC in place a protocol has to be followed. Now, by deciding to move out, Qatar will be free to decide how it wants to go about its business.” However, pricing will continue to be determined at market rates, he said adding “it will definitely be more flexible depending on the relationship it has with the buyers.” Petronet buys 7.5 million tonnes LNG annually from RasGas of Qatar. According to Narendra Taneja, an energy expert, “The tensions within the OPEC are good for big importers.” But, Vandana Hari, founder of Vanda Insights, a Singapore-based oil market analyst, feels that there will be no impact on India from any angle, either in having Qatar as a crude supplier, or indirectly by way of crude price moves resulting from OPEC’s decision this week. Some of the key players in the industry feel that the development may put to test India’s bargaining skills and diplomatic ties. “Qatar wants to build new oil alliances with fellow producers and importers. OPEC was clearly coming in the way” Taneja said. Qatar was unhappy with Saudi Arabia’s dominance at the OPEC, he added.
Neutral impact
Given that Qatar has suffered a political and economic boycott by a handful of its Arab neighbours, led by Saudi Arabia since mid-2017, Doha’s decision is not without political overtones, said Hari. “The move may be politically and economically expedient for Doha, but is neutral as far as the impact on OPEC’s continuing efforts to balance global oil markets are concerned,” she observed. Qatar was a relatively small producer within OPEC, at less than 2 per cent of the group's total output, and remained within its quota agreed in November 2016, starting from February 2017. “It will be free to choose its oil production levels from January, but I don't expect any major changes and certainly not anything that might oppose the OPEC/non-OPEC efforts to restrain production,” Hari added. Doha’s move could spur some of the smaller cooperating non-OPEC producers to re-evaluate their participation in the output reduction pacts, but is unlikely to derail the OPEC and non-OPEC collaboration. “Russia's cooperation is what matters the most,” she said. On a similar note, Taneja said, “My sense is that Saudi Arabia and Russia may get even further closer. The growing tensions within OPEC may lead to the formation of a new cartel or a super OPEC, with a smaller membership but with a bigger production capacity and larger oil reserves.”
Source: The Hindu Business Line
India and the United Arab Emirates on Tuesday signed a currency swap agreement to boost investment and enable direct trade without using dollars or other international currencies. The swap is for 200 crore dirhams or Rs. 3,500 crore ($496 million), depending on which central bank requests the amount, an official statement said. "The bilateral currency swap agreement between India and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar," the statement said, adding that the two central banks had agreed the deal. While giving a push to the two local currencies, the swap deal would also reduce the transmission costs arising from exchange rate risks, it added. The agreement was signed after the 12th India-UAE joint commission meeting co-chaired by External Affairs Minister Sushma Swaraj and the UAE's Foreign Minister Sheikh Abdulla bin Zayed al Nahyan in Abu Dhabi. Bilateral trade between the two countries stood at around $52 billion in 2017, according to figures from the Indian embassy in the UAE. In 2015, China's central bank extended a currency swap agreement with the UAE Central bank worth $5.54 billion.
Source: NDTV
Rajiv Kumar says Niti Aayog has not done its own GDP projection yet but it will be around the same figure as projected by the RBI, which will be 7.4-7.5%. The country’s economy is likely to bounce back during the fourth quarter at a faster rate to match the overall projection for the current fiscal, Niti Aayog vice chairman Rajiv Kumar said Tuesday. However, the economy is unlikely to recover in the third quarter from the slow pace during the last quarter, the Aayog said. “Niti Aayog has not done its own projection yet. I think it will be around the same figure as projected by the Reserve Bank, which will be 7.4-7.5%,” Kumar told PTI here. He was responding to a query on the overall GDP growth of India during the current financial year. When asked if the economy will bounce back in the third quarter, Kumar said: “(It) may not recover. The recovery will be, I think, in second half. I don’t know about quarter three. But I think we will remain in the same level and then become faster in quarter four. That way I am looking at it”. India’s growth in the July-September quarter slipped to 7.1% from 8.2% in the April-June quarter as consumption demand moderated and farm sector displayed signs of weakness. The growth in gross domestic product (GDP) in July- September is the lowest in three quarters but better than 6.3% in the same period of the previous year, helping the country retain the tag of the world’s fastest-growing major economy, ahead of China. Meanwhile, Crisil has cut India’s growth forecast for current fiscal to 7.4% from 7.5% on the back of weakening global GDP and trade growth. Care Ratings also cut its forecast by a similar measure to 7.4%, saying the subdued pickup in economic activity in the second quarter and constraints in the financial system will dent growth. Analysts at Icra Ratings retained their growth forecast, but at a much lower level of 7.2%.Similarly, India Ratings also reiterated its 7.3% estimate.
Source: Live Mint
Even as credit growth still remains in comfort territory, despite slowing down, the report said there is more concern over the slowdown in growth. Credit growth to Micro & Small Enterprises (MSEs) has been quite stupendous after the implementation of GST. Incremental credit to this segment (under priority sector) in the 15-month period post-GST increased 5 times to ₹1.23 lakh crore, compared to ₹25,700 crore during the corresponding pre-GST period, according to a State Bank of India research report. The jump in credit to MSE sector bodes well regarding the formalisation of the Indian economy and, hence, the ensuing benefits, said the bank’s Ecowrap report.
Economic activity
The report observed that the deceleration in credit during the pre-GST period was partly due to the overall slowdown in economic activity, rising NPAs (non-performing assets), and reclassification of food and agro-processing units from the MSME (micro, small and medium enterprise) category to agriculture sector (as per the revised priority sector lending guidelines, 2015). “According to International Finance Corporation (IFC) estimates, the potential demand for India’s MSME finance is about $370 billion, against the current credit supply of $139 billion, resulting in a finance gap of $230 billion. Hence, much needs to be done,” the report said. Even as credit growth still remains in comfort territory, despite slowing down, the report said there is more concern over the slowdown in growth. The report has cut its FY19 GDP forecast for FY19 to 7.2 per cent from 7.4 per cent earlier
Source: The Hindu Business Line
MUMBAI: The rupee slipped further by 3 paise to close at 70.49 against the US dollar Tuesday due to increased demand for the American currency from importers and firming global crude oil prices. Forex traders said the dollar strengthening against major global currencies overseas and losses in the domestic equity market also weighed on the local unit. At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 70.50 and fell further to touch the day's low of 70.68 a dollar. The domestic currency, however, pared some losses and finally ended at 70.49 per dollar, down by 3 paise against its previous close. On Monday, the rupee had dropped by 88 paise, its biggest single-day loss in more than three months, to close at 70.46 against the US currency. The rupee came under pressure following heavy selling in domestic equities and rise in crude oil prices. Brent crude, the international benchmark, again and was quoted at USD 63.09 per barrel Tuesday, higher by 2.27 per cent, putting pressure on the local unit. Building on Monday's surge, oil prices continued to rise Tuesday fuelled by the Russia-Saudi Arabia pact to cap output. Moreover, global investors also cheered the deal between Donald Trump and Xi Jinping announced Saturday, to halt the tariffs battle for 90 days while they try to resolve their differences. The BSE Sensex ended lower by 106.69 points, or 0.29 per cent, to close at 36,134.31. Similarly, the broader NSE Nifty edged up by 14.25 points, or 0.13 per cent, to end at 10,869.50. Foreign funds withdrew Rs 55 crore on a net basis from capital markets, provisional data showed. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.3455 and for rupee/euro at 80.0790. The reference rate for rupee/British pound was fixed at 89.6450 and for rupee/100 Japanese yen was 62.21.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1269.52 |
USD/Ton |
0.98% |
12/4/2018 |
|
VSF |
2008.93 |
USD/Ton |
0.07% |
12/4/2018 |
|
ASF |
2364.51 |
USD/Ton |
0% |
12/4/2018 |
|
Polyester POY |
1209.41 |
USD/Ton |
0.85% |
12/4/2018 |
|
Nylon FDY |
2896.80 |
USD/Ton |
-3.38% |
12/4/2018 |
|
40D Spandex |
4779.72 |
USD/Ton |
0% |
12/4/2018 |
|
Nylon POY |
5460.47 |
USD/Ton |
0% |
12/4/2018 |
|
Acrylic Top 3D |
1462.88 |
USD/Ton |
0% |
12/4/2018 |
|
Polyester FDY |
2766.44 |
USD/Ton |
-1.04% |
12/4/2018 |
|
Nylon DTY |
2476.76 |
USD/Ton |
0% |
12/4/2018 |
|
Viscose Long Filament |
1368.74 |
USD/Ton |
0.53% |
12/4/2018 |
|
Polyester DTY |
3244.42 |
USD/Ton |
-0.88% |
12/4/2018 |
|
30S Spun Rayon Yarn |
2701.27 |
USD/Ton |
0% |
12/4/2018 |
|
32S Polyester Yarn |
1940.86 |
USD/Ton |
-0.37% |
12/4/2018 |
|
45S T/C Yarn |
2911.28 |
USD/Ton |
-0.99% |
12/4/2018 |
|
40S Rayon Yarn |
2998.19 |
USD/Ton |
0% |
12/4/2018 |
|
T/R Yarn 65/35 32S |
2549.18 |
USD/Ton |
0% |
12/4/2018 |
|
45S Polyester Yarn |
2100.18 |
USD/Ton |
0% |
12/4/2018 |
|
T/C Yarn 65/35 32S |
2491.25 |
USD/Ton |
-0.58% |
12/4/2018 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0% |
12/4/2018 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
12/4/2018 |
|
40S Combed Poplin |
1.14 |
USD/Meter |
0% |
12/4/2018 |
|
30S Rayon Fabric |
0.64 |
USD/Meter |
-0.22% |
12/4/2018 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
12/4/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14484 USD dtd. 4/12/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In the 1970s and 1980s, Nigeria had a number of textile firms across the country. The period saw the emergence of big textile firms such as Nigerian Textile Limited (UNTL), Aswani Textile, Afprint, Asaba Textile Mills, Five Star, Gaskiya, SpecoMills, Zamfara Textiles, Millet Nigeria Limited and Edo Textile Mills, among many others. During this time, measures were taken to kick-start textile revolution in the country. Protectionists say one of the major policies that helped the industry was the ban placed on importation of textiles during and after the Civil War, which ultimately drove many investors into the industry. In 1978, the then military government further gave a boost to this industry by continuing with the ban, a policy that was to run till 1984. This led to backward integration in the sector as many textile mills became fully integrated, even as some became spinning mills. 1980s, the Nigerian textile market had become the third largest in Africa, with over 160 vibrant textile mills and over 500,000 direct and indirect jobs. In fact, by 1985, there were about 180 textile mills in the country, employing about one million Nigerians.
Dwindling fortunes
However, the fortunes of the sector began to dwindle in early 1990s. Precisely in 1994, many textile manufacturers began to feel the pinch of unstable political situation, massive smuggling and high production costs due to poor infrastructure, taxes and levies, among others. The situation worsened in 1997, when ban on importation of textiles was lifted. There were so many outcries by industry players and well-meaning Nigerians as they warned of the consequences of that policy. Inferior imported products flooded the market. Consequently, many big players in the industry could not survive. Many divested to other interests while others leased their premises to other companies. For instance, Aswani Textile leased its premises to Chellarams, manufacturer of dairy products. Afprint, on the other hand, went into oil manufacturing and car business. Enpee Industries became a packaging industry. Within six years, over 50 companies had closed down, while about 80,000 employees had lost their jobs. As of today, companies such as Aba Textiles, Asaba Textile Mills, Arewa Textiles, Five Star, Gaskiya, Haffar Industrial Company Limited, SpecoMills, Zamfara Textiles, Millet Nigeria Limited, among others, have all been forgotten when textiles are discussed. About 60 percent capacity utilisation in 1996 deteriorated to about 28 percent as of 2002. This has also deteriorated further today.
Policy intervention
The democratic government of Olusegun Obasanjo recognised the need to revive the sector and consequently imposed a temporary suspension on importation of printed textiles. This was followed by eventual ban of all imported textile products as from January 1, 2004. Secondly, the majority of the imported raw materials used in the industry were to attract low duty rate. Furthermore, the government took cognisance of the fact that banks were reluctant to lend to players in the industry and muted the idea of setting up a revival fund for the industry. However, this did not take off until December 18, 2009, when the government of Umaru Musa Yar’Adua formally established N100 billion Cotton, Textile, and Garment (CTG) Revival Fund. This is currently managed by the Bank of Industry (BoI), which grants loans to textile companies at a single-digit interest rate.
Present situation
The CTG Fund has had positive impacts on the textile industry. Olusegun Aganga, former minister of industry, trade and investment, said in February 2013 that it had saved about 8,070 jobs. However, at the moment, there are many daunting challenges staring the sector on the face. Some of these present challenges were articulated by Paul Jaiyeola Olarewaju, former director-general, Nigeria Textile Manufacturers Association (NTMAN). “The major problem is the influx of foreign textiles into the country. This is killing the industry. As at today, almost 80 percent of textiles in the country are imported. Though it is still under ban, it’s still smuggled,” he told BusinessDay in 2013. A research conducted by The Economist in 2015 noted that illegally imported Chinese-made fabrics imitating Nigeria’s signature prints flood Nigeria with some Customs officials turning a blind eye to them. The report said that dilapidated textile factories in the country’s northern city of Kaduna are what remain of the industry, which in its heyday employed 350,000 people. According to the World Bank, textiles smuggled into Nigeria through Benin Republic each year are worth $2.2bn, as against local Nigerian production estimated at US$40m annually. Grace Adereti, president of NTMAN, said in Lagos at a Made-in-Nigeria stakeholders’ meeting in 2017 that the industry needed an enabling environment to survive. “What we need is the enabling environment. We cannot compete with the level of smuggling and counterfeiting going on now. We used to have about 127 textile firms in Nigeria but that has come down to two or three now,” she said. “We had the revival loans but this didn’t work because our biggest problem has never been money,” Adereti said. Another problem faced by the sector is infrastructure problems. Erratic power situation increases production costs and reduces competitiveness of local textiles as they are often costlier than imported or smuggled ones. But this is a general problem and not peculiar to the textile industry. Third, the government and its do not always patronise the industry.
Revival efforts
In April 2016, Aisha Abubakar, Minister of State for Industry, Trade and Investment, took a tour of few surviving textile mills in Lagos State. Abubakar visited Spintex Mills Nigeria Limited, Lucky Fibres Plc, and Nichemtex Plc, all in Ikorodu, Lagos State. Abubakar’s mission was to ascertain the state of the industry, hear directly from key players on the challenges facing the industry and then proffer enduring solutions. The key players narrated all their woes to the minister. They complained about smuggling, high energy costs, import policy flip-flops and poor patronage by the public and the private sectors. The firms earlier visited by the minister are basically rug producers and cotton processors/ exporters, which today are classified as textile firms. Thirty-two months after the visit, these problems facing the industry are still there. Nigeria’s lack of will to tackle smuggling head-on has been its biggest woe. India, which began its industrial journey almost the same time as Nigeria, is today world’s largest exporter of textile products after China, with 13 percent global market share, dwarfing Germany and Italy who now come third and fourth respectively. The country’s textiles industry is estimated at $108 billion, contributing five per cent to Gross Domestic Product (GDP) and 14 per cent to overall Index of Industrial Production (IIP). The industry attracted Foreign Direct Investment (FDI) valued at $2.41 billion between April 2000 and December 2016, creating 100 million direct and indirect jobs with over 350 textile mills working. Like Nigeria, India has an arid land that grows cotton used by textile firms. However, unlike Nigeria whose tanneries in Kano and Kaduna are comatose owing to poor cotton seedlings and demise of textile mills, India has explored the opportunity to produce enough cotton to service textile mills and export 1,307.11 million kgs in 2015/16. In the face of Nigeria’s quest for economic diversification and recovery, industry watchers want the government to take proactive steps to revive the industry. Stakeholders say money only occupies 30 percent of the problem in the sector. According to those who spoke with BusinessDay, even if the government increases funding but is unable to stem imports or smuggling, the impact of the funding may still not be felt. It therefore goes without saying that it is time the Federal Government pointed its searchlight on the bad eggs in the Nigeria Customs Service (NCS) who might be aiding and abetting the shoddy business of smuggling. This is more imperative now that the African Continental Free Trade Area (AfCFTA) is on the pipeline. Stakeholders also say the government should mandate contractors of official uniforms to patronise local manufacturers. Again, experts say the Federal Government needs to extend the services of AMCON to the industry.
Source: Business Day
The World Wide Fund for Nature (WWF) has announced a partnership with the Vietnam Textile and Apparel Association (Vitas) to make the sector more environmentally friendly through improving water management and energy sustainability. “Vietnam ranks as the fifth largest exporter of apparel goods in the world, but our industry is more famous for low cost production with limited environmental standards”, said Vu Duc Giang, Chairman of Vitas, in a statement. “With customers worldwide now more conscious about the environment, this is forcing a lot of global brands to change their operations to include higher environmental and social standards. If we do not change our practice now, Vietnam could lose its competitiveness”. According to WWF, the textile and apparel industry is one of the most important sectors in Vietnam’s economy. It employs about 3 million people and contributes 15 percent of total export value. The sector has also had an annual growth rate of 12 percent between 2010 and 2017. However, the more Vietnam’s textile and apparel industry expands, the more impact it has on the environment. “With more than 10 years of working with the textile industries of top exporting countries as Bangladesh, China, India and Pakistan, WWF believes that we can help Vietnam to create a big positive change for the sector”, said program adviser Marc Goichot. To be implemented between 2018 and 2020, the project aims to encourage local companies based on the Mekong and Dong Nai deltas, where more than half of the country’s apparel factories are located, to practice sustainable energy planning and be more active river stewards.
Source: Fashion United
The Pakistan Textile Exporters Association (PTEA) has stressed the need for immediate release of outstanding Duty Drawback of Taxes (DDT) claims in order to achieve sustainable growth through enhanced exports. The textile industry has the capacity to add a further $5 billion to textile exports and generate 500,000 new jobs in two years. PTEA Chairman Khurram Mukhtar said the cash crunch had squeezed the financial stream and textile exporters were finding it difficult to meet their export commitments. An amount of Rs16 billion was approved by the previous government for the release of DDT claims but it could not be paid and the outstanding amount had accumulated to Rs35 billion, he added. Moreover, huge customs duty rebate claims amounting to Rs10 billion are also stuck. He lamented that though the textile industry contributed 8% to the national GDP, it remained a low priority area for the policymakers and the sector had not been given due importance. Resultantly, a meagre growth of 0.41% had been recorded in textile exports in July-October 2018-19 as compared to the previous year, which reflected non-seriousness of the government towards the largest manufacturing industry, he said. Terming the value-added textile sector the main engine of growth, Mukhtar underlined the need for the production of exportable surplus. He called for the immediate release of stuck liquidity in order to achieve maximum industrial growth and a significant increase in exports as the cash crunch was negatively impacting the export-oriented textile industry. Pointing to the major tax irritants, he said textile exporters were facing a serious issue of non-processing of refund claims pertaining to lubricants/oils. Furthermore, the effect of income tax credit under Section 65B was not being properly passed on to the exporters as a huge amount of tax credit claims was lying unprocessed. Tax authorities at several times had made commitments to resolve the issues but they were still unresolved, he added.
Source: The Express Tribune
Pakistan and Italy Tuesday signed a Memorandum of Understanding (MoU) for enhancing economic and trade cooperation in different sectors. Federal Secretary for Commerce Mohammad Younus Dhaga while addressing as chief guest at the MoU signing ceremony between ICE, Italian Trade Agency and Trade. Development Authority of Pakistan here, informed both countries agreed to extend the cooperation in infrastructure and construction, energy, logistics, transport, telecoms, water, machinery and equipment for manufacturing marble and stones, textile, clothing, leather, shoes, rubber, metal and chemical products. Both sides also agreed to increase cooperation in agriculture and food equipment, machinery and equipment for health and pharmaceutical sector, automotive, consumer goods, food, furniture, clothing and apparel, he added. Dhaga said Italy and Pakistan had excellent bilateral political and trade relationship rooted in history. He said Italy was among the top ten trading partners of Pakistan in the world and third largest in context of trade with European Union (EU) and there was trade potential in both the countries, which need to be tapped in near future. He further said Italy had helped Pakistan while acquiring Generalized Scheme of Preferences (GSP-Plus) with EU countries for increasing Pakistan’s exports with them. He said Pakistan had increased the trade with EU countries by 14% after getting GSP- Plus and overall revenue impact was 38%.Dhaga said Italy would extend cooperation for value addition of different sectors to boost exports. He said after this MoU both of the parties agreed to enhance cooperation aimed at promoting Foreign Direct Investment in Pakistan and Italy. Addressing the MoU ceremony, Ambassador of Italy to Pakistan, Stefano Pontecorvo said both of the countries had decided to create a long term strategic relationship for increasing cooperation in different sectors. After signing the MoU direct contact would be established between the business communities of both of the countries. He said MoU between Pakistan and Italy would be result in industrial cooperation between both sides. While Trade Commissioner to UAE, Oman and Pakistan , Gianpaolo Bruno , Director General Trade Development Authority of Pakistan Rafeo Bashir Shah and Trade Counselor, embassy of Italy in Pakistan, Francesco Gargano highlighted the issues of economic and trade relations between the countries.
Source: Business Recorder
Pure London, UK’s largest festival of fashion, has announced the launch of Country Focus which spotlights Italy. Within Pure London, Pure Origin continues to evolve into the UK’s number one destination for sourcing and manufacturing, knowledge, and solutions. The next Pure London and Pure Origin will be held at London Olympia from February 10-12, 2019. As a convenient and cost-effective way for buyers to meet with UK and international manufacturers, Pure Origin brings together over 200 exhibitors from 13 countries to create a wide range of business and networking opportunities, new thinking and innovation. Garment and fabric suppliers, denim and textile designers and technology brands attract buyers, sourcing, and technical personnel from the likes of Asos, White Stuff, Victoria Beckham, River Island, JD Sports, Marks & Spencer and Selfridges, according to a press release on the show. The new Country Focus section will showcase some of the best of Italian fashion with leading fabric houses, manufacturers, labelling and packaging companies showcasing their collections. TRE GI SRL specialise in the production of men’s and women’s outerwear for luxury fashion brands (including Prada, Louis Vuitton, Bottega Venetta, Moncler, Dsquared, Christian Dior) in the world. The manufacturing is 100 per cent made in Italy, where 160 people are producing about 35,000 pieces annually. Gruppo Mastrotto, one of Italy’s biggest tanneries from Arzignano, will focus on promoting its core values of innovation and sustainability, showcasing eco-friendly products and promoting its new service that meets the need for speed and flexibility: Gruppo Mastrotto Express, 1100+ colours available, more than 25 collections in prompt delivery, ready in 48 hours, even for small quantities offering the perfect solution for capsule collections and any leather application. Fabric House will display exclusive premium fabrics, offering a collection of 10,000 different apparel fabrics including robust coat fabrics, delicate lace, classic check patterns, modern prints, cord, burnout velvet, and inner linings. Tessilgraf, one of the largest leaders in trims production for the international fashion industry, will exhibit its modern, technological and distinguished labels, hangtags, packaging, and security systems. Across the rest of Origin, market demand for newness comes in the form of a host of first-time exhibitors including Aamra, Optitex, Hellenic Sourcing Group, and Bhuiyan Group. Driving the sustainability agenda, Pure Origin also welcomes The Global Organic Textile Standard (GOTS), recognised as the world’s leading processing standard for textiles made from organic fibres defining high-level environmental criteria along the entire organic textiles supply chain. Promoting the superior quality and innovation of the British leather industry, the UK Leather Federation and guest speaker Marc Gummer, senior lecturer from The Institute for Creative Leather Technologies (ICLT) at The University of Northampton aim to dispel misconceptions about the use of leather as well as address complexities of the leather supply chain and demonstrate how informed design can increase sustainability. The Association of Suppliers to the British Clothing Industry (ASBCI), Sedex, and WTiN continue to support Pure Origin in partnerships that aim to offer visitors a complete view on fashion manufacturing and sourcing via meeting points within the show and through workshops and seminars discussing innovation in textiles, technical and commercial excellence, and standards in global supply chains. At Pure London, visitors will continue to see over 700 women’s and menswear brands offering ready to wear and premium collections, footwear, and accessories as well as the newly created Gen Z section, and kidswear section, Bubble, at Pure London.
Source: Fibre2Fashion
Over 200 companies from 9 countries are exhibiting at the ongoing Iran’s international exhibition of Textile Machinery, Raw Materials, Home Textiles, Embroidery Machines and Textile Products (IRANTEXT). The exhibition is showcasing modernisation in production lines, updating methods and building new relations while maintaining the existing ones. The participants from Iran are presenting their updated designs depicting the Iranian and Islamic culture. All the stakeholders in the textile supply chain including organisations, universities, textile managers, manufacturers of different fields including spinning, weaving and knitting, carpet, dyeing, printing, finishing, garment and clothes, fashion, sellers of raw materials, machines and spare parts, auxiliaries and services and exporters & importers are attending the 24th edition of Iran's international exhibition for textiles. The fair will conclude on Wednesday. (RR)
Source: Fibre2fashion
