The share of the Indian economy in the world, measured as a ratio of India's gross domestic product (GDP) to world's GDP at current US dollar, has increased from 2.6 per cent in 2014 to 3.2 per cent in 2017, according to the World Development Indicators database, Indian minister of state for finance Pon Radhakrishnan recently told parliament. The average share of the Indian economy in the world from 1960 to 2013 was 1.8 per cent. The average growth of the Indian economy during 2014-15 to 2017-18 was 7.3 per cent, fastest among the major economies in the world, the upper house of parliament was informed. The Indian economy is projected to be the fastest growing major economy in 2018-19 and 2019-20, according to International Monetary Fund October 2018 database. This is borne by the GDP growth of 7.6 per cent in the first half of 2018-19, an official press release quoted the minister as saying. As per Central Statistics Office(CSO) estimates, the per capita income of the country increased from ₹86,647 in 2014-15 to ₹112,835 in 2017-18, recording a 30.2 per cent growth from 2014-15 to 2017-18. (DS)
Source: Fibre2fashion
While the old guidelines included only women, the new one released on Friday has brought migrant and contract workers under its purview. It also has sections on sexual harassment and registrations of hostels for women workers. The guidelines were formed with the help of the British Standards Institution (BSI), India. The chairperson of the Tamil Nadu State Commission for Women, Kannagi Packianathan, said the new guidelines included health aspects of the women employees, creches for newborns and children, avoiding health hazards for women, among others. “They also mention apprenticeship and the time before which they have to be regularised. The formation of the internal complaints committee to look into sexual harassment complaints is also specified.” While none of the mills are bound by the guidelines, more mills can be motivated to follow them, said Packianathan. “We plan to do more surprise inspection in mills and will give them some time to adopt these guidelines. While the district collectorate is the authority to frame the guidelines, we hope the bigger mills will motivate small and medium mills to adopt them,” she added. SIMA hopes that the guidelines, which can also result in a prestigious certification, becomes popular enough to be considered a selling point in the international market. “This is called version 2.0. The first version was released in 2010. So far, four mills have adopted these new guidelines on a pilot basis,” SIMA secretary K Selvaraju said. “We hope more mills will get motivated to adopt the guidelines and get a five-star rating from BSI. We also hope it becomes a popular attraction for buyers from abroad.”
Source: Times of India
Chamarajanagar: Chamarajanagar MP R. Dhruvanarayan has said that Sutlej Textiles and Industries Ltd., has come forward to set up a textile industry in Chamarajanagar Industrial Park. Chief Minister H.D. Kumaraswamy, who was in Delhi recently, held talks with the company promoters, during which the CM assured all help to the company for setting up a textile unit. Maintaining that the Karnataka Industrial Area Development Board (KIADB) has developed an Industrial Park in Chamarajanagar district spread over 1,600 acres, the MP said that the efforts of the previous State Government to attract industrialist had not borne much fruit. But now Sutlej Industries has come forward to set-up a Textile Unit, Dhruvanarayan said. During the meeting with the CM, the Sutlej Industries promoters have sought certain subsidies, which the Government has agreed to consider, the MP said and added that the setting up of the textile unit will initially create, 1,500 jobs and more jobs after expansion.
Source: Star of Mysore
Textile units in the State that have accommodation facilities for their workers on their premises should register the hostels, said Kannagi Packianathan, Chairperson of the Tamil Nadu State Women Commission. Inaugurating a workshop here on Friday on “Tamil Nadu Multi Stake Holder Dialogue - Developing Best Practices Model in Textile Industry”, organised by the District Social Welfare Department and Community Awareness Research Education Trust, she said women workers should have protection at work places. They were under stress after long working hours. The textile units should provide good food, the required rest, and freedom of movement to the women staying in the hostels and make them feel at home. They need to be protected under the law. The Commission recently conducted a public hearing in Chennai for textile workers. The textile units should abide by the Government regulations and should register the hostels, she said. K. Jagadeesan, Additional Director of Industrial Safety and Health, Coimbatore, said the Social Welfare Department would complete the formalities to register the hostels. The mills should make use of this opportunity. According to P. Thangamani, Coimbatore District Welfare Officer, the units that had not registered the hostels so far could approach the department for assistance. Representatives of 45 textile units participated in the workshop.
Source: The Hindu
Akshay Sethi has a vision: he wants to revolutionize fashion by recycling polyester to create a sustainable fibre that can be reused eternally. But this ambitious vision is only part of an even bigger plan: to do the same for all plastics. His Moral Fiber company has developed a three-step chemical process that can extract polyester from mixed blend materials to create a new yarn, billed as the world’s first textile product made entirely from old clothing. The equipment needed for this transformation can fit into a small shipping container, making it easy to deploy. For now, the process is being tested in a pilot plant in Los Angeles but next year, Sethi hopes to be able to start sending the “box” to countries with growing middle classes and high levels of consumption and waste so that they can recycle clothing and produce Moral Fiber as well. The technology has had several iterations since Sethi and fellow chemistry student Moby Ahmed started exploring ways to recover polyester, the most common fabric in mass-produced clothing, while at University of California, Davis. They founded Ambercycle (now Moral Fiber) in 2015, working initially with microbes to break down polyesters. “We started with a microbial process and when you are trying new things, you discover new things. And so, we discovered this chemical process. It’s three steps, very elegant,” Sethi said. “We take a mixed material, which has some cotton and polyester, and extract the polyester at the molecular level to produce a new yarn,” he said. The leftover material is incinerated to power the pilot plant but the final box could also be powered by solar panels placed on the roof. The process requires around 45–50 amps of power at peak consumption. Sethi says the technology can extract polyester from any blended material and will be suitable for recycling other plastics. “We’ll start with fabric but it can process packaging, bottles, containers, films, multilayer packaging. We see this box as the box that is tailor-made for textiles but in the future, we want to make a box for packaging, a box for carpets and for all sorts of different materials,” he said. Sethi has financing from large international stakeholders in the apparel supply chain as well as traditional venture investors. So far, the Moral Fiber team have been working “in stealth”, keen to deal with any issues before going public. The Los Angeles plant uses clothing scraps from local outlets, processing around 100 kilogrammes a day. Sethi and his team are currently tweaking the process and learning what is needed to scale up. Next year, they plant to launch a Moral Fiber collection with a major brand. Sethi sees Moral Fiber as another weapon in the battle against marine plastic pollution. He wants to keep polyesters out of the sea and also deal with the problem of microfibres leaking into our rivers and oceans when textiles shed. “What we’ve seen so far is you can make a polyester fibre that doesn’t shed. You can do it, it’s just a question of making it in such a way that it’s scalable,” he says. “We are working on ways to do that right now. You can’t have materials that go into the oceans and biodegrade there and turn into microfibres.” Through its Clean Seas campaign, UN Environment is urging governments, businesses and consumers to reduce their use of unnecessary single-use plastics and preserve the oceans and their rich wildlife for future generations. Microplastics, which are produced when plastics start to break down, are a particular problem, with some estimates stating that as many as 51 trillion microplastic particles—500 times more than the stars in our galaxy—litter the seas. As part of its campaign, UN Environment encourages inventors, designers and researchers to look for ways to beat our plastic addiction. Pioneering solutions to the plastic problem, and other environmental crises, will be at the heart of the fourth UN Environment Assembly next March. The meeting’s motto is to think beyond prevailing patterns and live within sustainable limits. Sethi lives by this mantra but he also knows that his innovation must be able to compete with materials made from fossil fuel byproducts.“This is a staunch belief of mine … It has to be competitive with oil. If it’s not, it’s not sustainable. The number one cornerstone of our process was that we could compete on the economics of oil,” he said. Another challenge is to deal effectively with the multiple players in the textile and clothing business, although Sethi is fortunate to have had support from Fabric of Change, a global initiative to support innovators for a fair and sustainable fashion industry, and Ashoka, the largest global network of leading social entrepreneurs. Moral Fiber also joined the Fashion for Good scaling programme in November, where the company will be supported for 18 months and offered unique opportunities to connect to manufacturers, brands and investors. For Sethi, a key driver in his search for sustainable textiles is the knowledge that fast fashion is not going anywhere, particularly given the growth of the middle class in emerging economies. The demand for clothes will increase but he hopes Moral Fiber can offer a sustainable, closed-loop solution. “All clothing made with Moral Fiber can be infinitely recycled,” he said. “When it comes to product life cycles, we must return to infinity. It is the only way.”
Source: UN Environment
Despite the series of rate cuts since its July 2017 launch, the shortfalls in GST collections seem to be bridging for many states, in what indicates an improvement in compliance. The deficit is reckoned against the 14% y-o-y growth target set under the GST compensation law. Despite the series of rate cuts since its July 2017 launch, the shortfalls in GST collections seem to be bridging for many states, in what indicates an improvement in compliance. As a result, the overall GST revenue deficit for states has come down to 10% in April-November 2018 from 20% in the August 2017-March 2018 period, data gathered by FE showed. (The deficit is reckoned against the 14% y-o-y growth target set under the GST compensation law). Among the big states that managed to reduce the shortfall the most are Bihar (18 percentage point reduction between the two periods), Assam (14 pps) and Jharkhand (10 pps). The deficit saw a marginal rise or remained at the same level in case of Tamil Nadu, Karnataka, Gujarat and Kerala. Also, in case of some states like Himachal Pradesh, Punjab, Uttarakhand and Jammu and Kashmir, the shortfall is still very high at over 30%.The states are, of course, guaranteed full compensation for any revenue shortfall against the 14% target. Notwithstanding the compensation, the states also bear the brunt of GST revenue shortfall, as it would affect the Centre’s tax devolution to them under the Finance Commission formula. Finance minister Arun Jaitley has recently stated that only six states have achieved the revenue-growth target, while seven were very near to achieving it. The overall monthly GST target for states last fiscal was Rs 43,000 crore if one goes by the 14% growth norm (it is another matter states individually set higher targets). That means they would need a little over Rs 49,000 crore/month in the current fiscal. The latest trends in revenue indicate that some of the ‘consuming states’ that were running high deficit last fiscal have managed to reduce the gap significantly. These include Bihar, Assam, Rajasthan, Madhya Pradesh and Jharkhand. In contrast, “manufacturing states” like Maharashtra and Gujarat are still struggling. Arguing that GST revenue position isn’t disappointing as it is made out to be, Jaitley said recently that the targets set for the states were ‘unprecedently high’ and so, ‘almost unachievable’. Recalling that tax incidence on some 235 items were 31% or higher during the UPA regime, Jaitley said substantial rate reductions — in monetary terms amounting to about Rs 80,000 crore/year — have already taken place from that levels in the UPA period.” “Notwithstanding the substantial tax reduction, the GST collection in the first six months of this year has shown a significant improvement compared to the first year. The average monthly tax collected in the first year was Rs 89,700 crore compared to Rs 97,100 crore per month in the second year,” the minister wrote in a blog. The overall GST collections for October (collected in November) dropped to Rs 97,637 crore from Rs 1 lakh crore collected in the previous month. These latest figures sustained worries over a major GST revenue deficit for the Centre , although November collections were marginally higher than the monthly average of Rs 97,039 crore in the April-November period. A report by the country’s largest bank State Bank of India estimated that federal and state governments could face a shortfall of about Rs 90,000 crore in GST tax collections in the current fiscal year against the target of Rs 12.9 lakh crore.
Source: Financial Express
Even though China has for long remained favorite destination for global investors, India has pipped its neighbour in 2018 for the first time in the last 20 years in terms of attracting foreign direct investment (FDI). With 253 inbound deals amounting to $39.515 billion, India’s annual FDI was higher than that of China’s so far this calendar year, according to data from Dealogic, a global financial markets platform. China attracted FDI to the tune of $33.02 billion in 397 inbound deals in the same period, the data showed. In 2017, while India had attracted FDI worth $18.57 billion in 205 inbound deals, China’s FDI amounted to $32.49 billion in 383 inbound deals. Explaining what led to India surpassing China in terms of attracting FDI this calendar year, Rucha Ranadive of CARE Ratings told FE Online: “The stable macroeconomic environment and slowdown in the Chinese economy has helped India attract more FDI. In addition, the govt. of India has taken various initiatives. It has opened up various sectors for FDI investment and has promoted Single window clearance.” Also read: Petrol at lowest level in 2018; diesel selling for Rs 62.84 per litre in Noida today “There have been signs of slowdown in the Chinese economy since the eruption of tariff war with the US. This has resulted in outflow of foreign funds especially foreign portfolio investments from the emerging market economies including India”, she also said. The opening up of single brand retail, construction and power exchanges for foreign investment and allowing 100 per cent FDI in insurance broking is under consideration are a few of the steps taken by the government that may have helped, she added. Meanwhile, India aims to receive $100 billion in foreign direct investments in the next two years and special industrial clusters are being created for countries like Japan, South Korea, China and Russia where their companies can invest and operate, Union Minister Suresh Prabhu had said a couple of days back.
Source: Financial Express
Rupee vs dollar: After appreciating about 40 paise on Friday to close the day 69.93 against the US currency, the rupee gained further strength and opened 15 paise higher at 69.78 per US dollar from the previous close. On the other hand, in the bond markets, the 10-year government yield started at 7.37% against a previous close of 7.39%.On Friday, the domestic currency rose 40 paise to finish at an over one-week high of 69.95 per US dollar on strong dollar buying by banks and exporters amid the US currency’s weakness overseas. At 9:25, the domestic currency was trading at 69.82 per US dollar, after touching an intraday high of 69.74 per US dollar and an intraday low of 69.83 per US dollar, about 11 paise higher from the previous close, according to data available with the Bloomberg. Meanwhile, the domestic stock markets– Sensex and Nifty –opened higher tracking positive gobal cues from Asian markets. The 30-share Sensex rallied by more than 182 points to 36,285.46 in the opening trade while the Nifty 50 is trading above the 10,850 mark. Kotak Mahindra Bank shares marginally slumped about 0.5% to Rs 1,237.20, as December 31st is the last day according to RBI for Uday Kotak to cut his holding in the bank. Jewellery-maker Titan shares gained by more than 4% to hit the day’s high at Rs 925.75. lso, crude oil prices rose on the last trading day of the year on Monday, taking a cue from firmer stock markets, but remain on track for the first yearly decline in three years amid concerns of a supply glut.
Source: Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1275.25 |
RMB/Ton |
0% |
12/28/2018 |
|
VSF |
1977.58 |
RMB/Ton |
-0.37% |
12/28/2018 |
|
ASF |
2354.91 |
RMB/Ton |
0% |
12/28/2018 |
|
Polyester POY |
1206.90 |
RMB/Ton |
0.79% |
12/28/2018 |
|
Nylon FDY |
2704.63 |
RMB/Ton |
0% |
12/28/2018 |
|
40D Spandex |
4754.91 |
RMB/Ton |
-0.61% |
12/28/2018 |
|
Nylon POY |
2995.45 |
RMB/Ton |
0% |
12/28/2018 |
|
Acrylic Top 3D |
5481.96 |
RMB/Ton |
0% |
12/28/2018 |
|
Polyester FDY |
1468.64 |
RMB/Ton |
0% |
12/28/2018 |
|
Nylon DTY |
2544.68 |
RMB/Ton |
0% |
12/28/2018 |
|
Viscose Long Filament |
2486.51 |
RMB/Ton |
0% |
12/28/2018 |
|
Polyester DTY |
1417.75 |
RMB/Ton |
0.52% |
12/28/2018 |
|
30S Spun Rayon Yarn |
2690.09 |
RMB/Ton |
0% |
12/28/2018 |
|
32S Polyester Yarn |
1963.04 |
RMB/Ton |
0% |
12/28/2018 |
|
45S T/C Yarn |
2879.12 |
RMB/Ton |
0% |
12/28/2018 |
|
40S Rayon Yarn |
2108.45 |
RMB/Ton |
0% |
12/28/2018 |
|
T/R Yarn 65/35 32S |
2486.51 |
RMB/Ton |
0% |
12/28/2018 |
|
45S Polyester Yarn |
2995.45 |
RMB/Ton |
0% |
12/28/2018 |
|
T/C Yarn 65/35 32S |
2471.97 |
RMB/Ton |
0% |
12/28/2018 |
|
10S Denim Fabric |
1.34 |
RMB/Meter |
0% |
12/28/2018 |
|
32S Twill Fabric |
0.81 |
RMB/Meter |
0% |
12/28/2018 |
|
40S Combed Poplin |
1.09 |
RMB/Meter |
0% |
12/28/2018 |
|
30S Rayon Fabric |
0.64 |
RMB/Meter |
0% |
12/28/2018 |
|
45S T/C Fabric |
0.69 |
RMB/Meter |
0% |
12/28/2018 |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14541 USD dtd. 28/12/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
LAHORE – The All Pakistan Textile Mills Association (APTMA) Patron-in-Chief Gohar Ejaz on Friday urged Prime Minister Imran Khan to chair regular meetings of the textile industry stakeholders to monitor policy implementation as well as performance in investment and exports, desperately needed to earn precious foreign exchange to overcome trade deficit in the shortest possible time.In his key-note address on the occasion of expressing gratitude to the prime minister for providing affordable energy, gas and electricity, to the textile industry, Gohar said the industry is committed to achieve $30 billion exports, undertake new investment initiatives and create millions of sustainable jobs. He said the immediate focus of the government should be on increase in cotton production by doubling cotton yield to 1200 kg per hectare from existing 660 kg. Presently, he said, the industry is dependent on import of 3.5 million bales to meet its consumption by spending precious foreign exchange worth $1.1 billion dollar per annum. An improvement in the cotton yield can take production to over 20 million bales that will save foreign exchange on the one hand and earn around $3 billion on the export of surplus cotton. According to him, there is an urgent need to provide a long term export-led growth policy. In the past, he pointed out, all such policies given by the previous governments from time to time could hardly see 15 percent implementation. He added that policy implementation should be the focus of the economic managers of the country that would enable the industry and exports to grow at more than 10-15 percent per annum without interruption and yield precious foreign exchange to mitigate trade deficit. He said there is a dire need to increase credit allocation to the industrial sector and release of liquidity lying pending on account of sales tax and DLTL should be processed expeditiously to augment a turnaround in the industrial productivity. He further added that the textile industry has envisaged to achieve 20 million bales of cotton production, one million ton polyester fibre, $28 billion textile and clothing exports, increase in share in global exports by 3.5% of textile and 2.7% of clothing, 6 million direct labour force and $1.4 billion new investment per annum by 2023-24, i.e. during the tenure of present government. He has expressed the hope that the recommendations made by the industry associations would soon be materialized in order to tap the potential of the textile industry in earning foreign exchange, bringing in investment and creating jobs to ensure a prosperous and developed Pakistan under the dynamic leadership of Prime Minister Imran Khan.
Source : Dunya News
High logistics costs, ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), foreign firms acquiring stakes in Vietnamese concerns, turning the fastest-growing market for cotton and Denimsandjeans’ 3rd edition marked the year for Vietnam’s textile-garments industry. Despite many Vietnamese garment firms facing significant hardships in 2017 because of orders being shifted to countries with low labour costs and tariffs, such as Cambodia and Bangladesh, the sector bounced back by mid 2018 after investing in technology and adjusting costs and inappropriate policies. Bilateral and multilateral free trade agreements (FTAs) that the country signed or was about to sign did contribute to the trend. Vietnam’s 14th National Assembly in November adopted a resolution ratifying the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 96.7 per cent of votes in favour. Experts cautioned high logistics costs for exports have made Vietnamese garment and textile firms uncompetitive. Logistics costs in the country are 6 per cent higher than in Thailand, 7 per cent more than in China, 12 per cent higher than in Malaysia and three times more than in Singapore. Vietnam has currently about 6,000 garment related companies that employ 2.5 million. In the first 11 months of this year, the textile and garment sector’s export value was $30 billion and trade surplus surpassed $13 billion, according to the Vietnam Textile and Apparel Association (VITAS). VITAS and the World Wide Fund for Nature (WWF) launched in October a project to transform the textile industry into a more sustainable 'Made in Vietnam' sector. This project will engage multiple players in the sector to promote better river basin governance and contribute to water quality improvement and sustainable energy use. In November, suppliers received training on climate action as part of the initiative. Global Compact Network Germany, Global Compact Network Vietnam, Vietnam Chamber of Commerce and Industry, World Wide Fund for Nature (WWF)-Vietnam and WWF-Germany joined forces with German fashion brands Adidas, Hugo Boss, Otto Group, Puma Group and Vaude to organise the training. In December, VITAS and WWF launched in Ho Chi Minh City a water risk report for the country’s textile and garment industry and a tool for assessing water risks in the Mekong region. Both are expected to support the development of garment and textile enterprises in the future. US firm Kraig Biocraft Laboratories, developer of spider-silk based fibres, signed a deal in November with the Institute of Biotechnology–Vietnam Academy of Science and Technology (IoB-VAST) and the Vietnam Sericulture Research Centre (VSRC) to import and rear its transgenic silkworms in the country. VSRC will provide professionals for hatching, caring and nurturing of silkworms, while IoB-VAST will provide a secure location to receive, store, and preserve the company’s transgenic silkworms. Kraig’s subsidiary Prodigy Textiles also signed three agreements with local farming cooperatives in Quang Nam province, Vietnam. Under these agreements, the farmers will produce the mulberry necessary to support the company’s recombinant spider silk production. Many foreign brands acquired stakes in Vietnamese companies to strengthen their position in the domestic market. Japan’s Uniqlo acquired a 35 per cent stake in Elise and will open its first store in Ho Chi Minh City next year. Uniqlo’s store in Vietnam will be operated through a joint venture between Fast Retailing and Mitsubishi Corporation. Vietnam was the second largest garment supplier to South Korea after China, accounting for 32.67 per cent of the share. South Korea’s Hyosung Corporation in September received a certificate of investment registration from the People’s Committee of Ba Ria-Vung Tau province for the construction of a polypropylene plant and a liquefied petroleum gas warehouse. The Dinh Vu Polyester fibre plant resumed operations of three production lines in April. The loss-making plant operated by the ministry of industry and trade was revived. Vietnam hosted the 3rd edition of Denimsandjeans in June. Themed ‘Rock N Roll’, the two-day show highlighted important places that denim occupies in the rock and roll history. Vietnam’s Bao Minh Textile Joint Stock Company in October inaugurated a textile factory at the Bao Minh industrial park in the Nam Dinh province. Constructed with an investment of over $73 million, the unit includes facilities for fabric weaving, dyeing and finishing workshops, a warehouse, a power centre and offices. Coats, a global industrial thread manufacturer and a major player in the US textile crafts market, expansion its development site in Hung Yen near Hanoi in September. The additional capacity makes the site one of Coats’ largest manufacturing units. The increase in Vietnam’s yarn exports, particularly to the world’s largest yarn importer–China, has made the country the world’s fastest-growing market for cotton. This has spurred opportunities for greater cotton exports from the US to the Southeast Asian nation, according to the Foreign Agricultural Service of the US Department of Agriculture. The United Nations Development Program and the Vietnam Chemicals Agency, ministry of industry and trade recently held the inception workshop of a project called the ‘Application of Green Chemistry in Viet Nam to support green growth and reduction in the use and release of persistent organic pollutants and hazardous chemicals’. VITAS, the Sustainable Apparel Coalition and Hong Kong-based garment firm TAL Group decided in June to introduce the Higg Index in the country. Higg is an online self-assessment tool that standardises measures for environmental and social impacts in the textile, footwear and fashion industries. Da Lat Worsted Spinning Limited Company began construction of a factory in June to spin yarn from wool in Phat Chi industrial cluster in Da Lat city in June. The factory is expected to commence operation in April 2019 and employ 400. The spinning mill is a joint venture between Germany’s Südwolle Group and Ho Chi Minh City-based Lien Phuong Textile and Garment Corporation. Several Japanese companies, including Itochu and Sakai Amiori, are investing in expanding their stake in the Vietnamese textile and garments sector. The country’s textile and garment industry will be facing a gamut of challenges next year, including Industry 4.0 and a shift from simple cut, make and trim processing to modes that involve purchasing materials, free on board, original design manufacturers and original brand manufacturers, experts have cautioned. Added to all that is fierce competition from Bangladesh, Cambodia, Laos, Sri Lanka and Myanmar. (DS)
Source: Fibre2fashion
LAHORE: Economists agree the country badly needs investment, both in infrastructure and manufacturing to boost exports, but any foreign investment that promotes domestic consumption only is against the long-term interest of the economy. We need export-based investment in textiles, agro-based industries and light engineering sectors. The foreign investors that invest in these sectors would earn foreign exchange for the country and their repatriation of profits would not be a burden on the foreign exchange of the country, as exports would be much higher than the profits earned by them. In contrast, if foreign investment is made in food and beverages that are totally consumed locally; there would be constant outflow of profits in dollars. We rejoice whenever a Pakistani food company is acquired by a foreign investor that makes one time investment in a running venture and starts repatriating profits within a year. We permitted foreign buyers to acquire numerous local banks. Two public sector banks were handed over to foreign investors at a very low price. In the last 10 years, they have recovered their investment and sending back millions of dollars each year to their head offices. The most regretful aspect, in this regard, is that we forcefully stopped a Pakistani investor to acquire one of these banks despite being the lowest bidder. In the power sector, we facilitated foreign investors by offering them 18 percent rate of return on their investment and assurance to buyback the power they produce. The icing on cake for the investors was that all the profit they earned was tax-free. The first Hubco plant in Karachi has benefitted tax waiver much higher than its actual investment, 60 percent of which was bank loan given on the guarantee of the government of Pakistan. There are numerous multinational pharmaceutical companies operating in the country that compete with local manufacturers. The Pakistani pharmaceutical concerns have ventured into exports, while the multinationals market their products only in Pakistan and repatriate profits to their principal country. The fast food chains are doing flourishing business and the profits are going outside. Government planners should lure back domestic investors, besides encouraging foreign direct investment, which Pakistan needs in sectors where the country has competitive advantage in the global markets. Investment in sectors where we have a comparative advantage would help enhance exports. The government would only have to ensure enabling business environment in the country instead of continuing with the fiscal incentives that are a risky and generally costly means of attracting foreign investment. Fiscal incentives have proved counterproductive in Pakistan, as investors’ edge out competition on these incentives. For instance, PTA plant established by a multinational enterprise kept the rates of made fiber much above the global rates on duty protection. After completion of duty protection period, the company disinvested in the plant. High manmade fiber cost impeded the ability of the local textile industry to keep pace with the global blended textile trends. Similarly, the production cost of many local industries increased, as the government provided protection (a kind of fiscal incentive) to the foreign manufacturer of soda ash in the country. The IPPs were offered guaranteed and high rate of return in 90's, a practice that has now become a norm as far as investment in electricity production is concerned. The planners must realise that investors are attracted to commercially profitable and politically stable environments. Moreover, in the absence of regime credibility, the foreign investors implicitly discount the value of these incentives because they doubt their fiscal sustainability. Moreover fiscal incentives are also corruption-prone. Regulatory procedures that investors must follow in establishing and operating new businesses are among the most important barriers to investment in Pakistan. Such procedures include registering businesses, administering taxes, obtaining investment approvals, business licences, intellectual property rights, access to land and long-term leases, construction and building permits, Customs clearances, and utility hook-ups. The flaws in the regulations raise production costs; reduce entrepreneurship, market entry and business expansion; and weaken competitive forces. The legal and regulatory codes need to be clarified and streamlined by eliminating duplicative, superfluous laws that increase the cost of doing business and invite corruption. Private property rights needed to be accessible to all citizens clearly defined and strongly enforced. Taxation system needs further reforms so that they are easy to comply with and discourage income concealment and encourage profitable economic activity. Likewise, labour laws need to be reformed to allow for more flexibility. There is a need for improved corporate governance legislation.
Source : International News
The US Trade Representative’s (USTR) office recently changed the scheduled date of a tariff rate rise to 25 per cent from 10 per cent on $200 billion worth of Chinese goods to 0501 GMT on March 2, 2019, from March 1 as both nations pursue trade talks. The notice does not affect the 25 per cent tariff rate in place on $50 billion worth of Chinese technology items. The notice attributed the change to new US-Chinese engagement “with the goal of obtaining the elimination of the acts, policies, and practices covered in the investigation” following a December 1 meeting between President Donald Trump and Chinese President Xi Jinping in Buenos Aires. The USTR statement did not specify any expected outcomes of the negotiation while making reference to goals set forth in a statement issued by the White House to negotiate over a 90-day period structural changes by China on forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and theft, services and agriculture. (DS)
Source : Fibre2fashion
The Central Bank of Nigeria’s (CBN) Manufacturing Purchasing Managers’ Index (PMI) stood at 61.1 index points in December, indicating an expansion in the manufacturing sector for the twenty-first consecutive months month. The index grew at a faster rate when compared to the index in the previous month. Thirteen of the 14 sub sectors surveyed reported growth in the review month in the following order: transportation equipment; furniture & related products; printing & related support activities; textile, apparel, leather & footwear; plastics & rubber products; chemical & pharmaceutical products; food, beverage & tobacco products; non-metallic mineral products; paper products; fabricated metal products; cement; electrical equipment; and petroleum & coal products. However, on the downside, the primary metal sub sector recorded decline in the review period. Also, the composite PMI for the non-manufacturing sector stood at 62.3 points in December 2018, indicating expansion in the Non-manufacturing PMI for the twentieth consecutive months. On Non-Manufacturing the PMI Report states that the index grew at a faster rate when compared to that in November 2018. All the 17 surveyed subsectors recorded growth in the following order: repair, maintenance/washing of motor vehicles; information & communication; water supply, sewage & waste management; wholesale/retail trade; professional, scientific, & technical services; accommodation & food services; arts, entertainment & recreation; electricity, gas, steam & air conditioning supply; utilities; finance & insurance; agriculture; transportation & warehousing; educational services; construction; real estate rental & leasing; management of companies; health care & social assistance.
Source: This Day
For global trade and industry, particularly textiles and apparel, 2018 turned out to be a very happening year. Rajesh Kumar Shah looks at top ten developments that changed or is likely to affect global textiles-apparel production and trade.
#1 US: Trump’s Decisions
United States (US) President Donald Trump’s decision of imposing duties on goods of other countries with which it has a negative trade balance, undoubtedly, had the maximum impact on the textiles and apparel industry worldwide in 2018. The US decision forced many textiles and apparel exporting nations to rethink, and be ready with an alternative strategy in case their exports to the US dwindle. As experts focused on pros and cons, especially the US-China trade war, some nations like Bangladesh and Vietnam saw in it an opportunity to boost their exports to the US. The year also saw the US signing a revised free trade agreement with South Korea as also the United States-Mexico-Canada Agreement (USMCA), a rechristened version of the North American Free Trade Agreement (NAFTA).
#2 UK: Brexit Uncertainty
Throughout the year, Brexit remained a point of discussion, over whether common rates would apply for goods entering the European Union (EU) and the United Kingdom (UK) or not. In November, 27 members of the EU approved the British withdrawal and future ties, insisting that it is the "best and only deal possible," paving the way for an "orderly withdrawal." However, the year ended inconclusively on the issue, as the British Parliament is yet to ratify the deal concluded by Prime Minister Theresa May with the EU. The International Monetary Fund (IMF) and Moody’s have warned that a no-deal Brexit would entail substantial costs for the UK. The Bank of England (BoE) has said that the UK may suffer an even bigger hit to its economy than during the global financial crisis 10 years ago if it leaves the EU in a worst-case Brexit scenario.
#3 EU-Japan EPA
The signing of the Economic Partnership Agreement (EPA) by the EU and Japan has made textiles and fashion companies in both EU member nations and Japan be prepared to export more goods. The EPA will create an open trading zone covering 635 million people and almost one-third of the world’s total gross domestic product (GDP) and remove tariffs on industrial products in sectors where the EU is very competitive, such as chemicals, textiles and clothing. Once implemented from February 2019, the EPA—the biggest ever trade agreement negotiated by the EU—will remove the vast majority of the €1 billion of duties paid annually by EU companies exporting to Japan, and will increase EU export opportunities in a range of other sectors, including textiles and clothing.
#4 China: Opening Up
Expanding the opening up of its economy, the Chinese government, effective July 1, 2018, reduced average tariff rate for clothing, shoes and hats, and sports and fitness supplies from 15.9 per cent to 7.1 per cent. It also cut import tariffs on goods from India, South Korea, Bangladesh, the Laos and Sri Lanka from July 1, under the Second Amendment of the Asia-Pacific Trade Agreement. This was followed by a further cut in import tariffs from November 1. For textiles, the average tariff rate was brought down from 11.5 per cent to 8.4 per cent, giving a chance for the global textiles and apparel industry to compete with local manufacturers in the Chinese domestic market. Further, rules for retail imports through cross-border e-commerce are to be relaxed from January 2019.
#5 CPTPP: Takes Effect
The year saw the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the coming into effect from December 30, after being ratified by six countries—the threshold to bring it into force. The CPTPP, the successor to the Trans-Pacific Partnership (TPP) after the US withdrawal, has eleven economies—Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam—representing around 16 per cent of global economic output and 500 million people. The CPTPP includes reduction in tariff and non-tariff barriers among members with high standards on human rights, labour and environment. The agreement resulted in fresh investment in the textiles and apparel sector in member countries like Vietnam, which is expecting the creation of 17,000-27,000 jobs each year for Vietnamese workers from 2020.
#6 India: Government Support
The Indian government took a number of steps to boost the country’s textiles and apparel industry. It approved 100 per cent foreign direct investment (FDI) under the automatic route for single brand retail trading (SBRT), a Scheme for Capacity Building in Textile Sector (SCBTS) with an outlay of Rs1,300 crore till 2019-20, and Samarth scheme for training 10 lakh people in the textiles industry. It also increased basic customs duty on 76 textiles and apparel products at 6-digit level from mid-July, and followed it up by doubling of import duty on 328 textile products to 20 per cent from the earlier 10 per cent. Duty drawback rates were marginally decreased on several textile items, though they were marginally raised on apparel items with effect from December 19. Overall, these steps have resulted in bringing optimism and new vigour in the country’s textile and garment industry.
#7 AfCFTA: Africa Rising
In what is expected to become the largest free trade area across the globe, 49 African nations signed the African Continental Free Trade Area (AfCFTA). It will create an integrated market of over a billion people in Africa with a combined GDP of nearly $3.3 trillion. AfCFTA will offer opportunities of scale and the free movement of people, goods and services. The United Nations Economic Commission for Africa estimates that the AfCFTA will increase intra-Africa trade from the current 10-16 per cent to nearly 52 per cent by 2022. Among African countries, Ethiopia stood out by setting up industrial parks in Addis Ababa, Hawassa, Mekelle, Adama, and Humera, and attracting investments from Chinese, Italian and Indian textiles and apparel companies.
#8 Asia: Wage Hikes
Apparel exporting countries like Bangladesh, Cambodia and Myanmar witnessed a rise in minimum wage, increasing the cost of production in these countries. In Bangladesh, the second-largest garment exporter after China, minimum wage increased from Tk5,300 ($63.21) to Tk8,000 ($95.41) with effect from December 1. In Cambodia, the minimum wage rose to $170; to be increased further to $182 from January 1, 2019. In Myanmar, the daily minimum wage for an eight-hour day was set at K4,800 ($3.11) from the earlier K3,600 ($2.33). In Africa, there was a 10 per cent rise in Ghana, and around 7-7.5 per cent hike in South Africa. Even in the US, there was a pay hike in 18 states beginning January 1, 2018.
#9 Uzbekistan: Marches On
The government of Uzbekistan introduced modern forms of cotton and textile production. The flow of Chinese investment into Uzbekistan’s textile industry registered a rise, while Uzbekistan Textile Industry Association signed export contracts with German and Polish firms. The association also signed an agreement with the government of Russia’s Ivanovo region to expand cooperation between enterprises in the textiles, garment and hosiery sectors. Uzbekistan also signed an agreement to supply textile products to France as the first trade house of Uzbekistan, UzFranceTrade, opened in Paris. There was also an agreement between the Uzbek silk industry association Uzbekipaksanoat and the Italian Silk Association to set up an Italian industrial park in Uzbekistan. The Uzbek government is mulling over a trade agreement and cooperation with India, China and Belarus, among other countries.
#10 Environment: Strict Monitoring
The government of China renamed its ministry of environmental protection as the ministry of ecology and environment in 2018 and strengthened its environment monitoring efforts. It also imposed an environment protection tax from January 1. In the UK, the Environmental Audit Committee called on five leading online-only fashion retailers to offer evidence as part of its inquiry into sustainability of the fashion industry. Meanwhile, global brands took steps to source more sustainable materials, designing products that are made to last and encouraging customers to return unwanted clothes for reuse. The 2018 edition of the Pulse of the Fashion Industry report said 75 per cent of the fashion companies improved their environmental and social performance over the last year. Committing to change the path of fashion, the UN Alliance on Sustainable Fashion—comprising 10 different UN bodies—is going to launch UN Environment in March 2019.
Source : Fibre2fashion
In the ready-made garment (RMG) sector, 2018 will in many ways be viewed as the end of an era. The Alliance for Bangladesh Worker Safety, the North American-led initiative which has done so much to improve worker safety in garment export factories, will shortly end operations in Bangladesh. Ninety-three percent of the remediation work is now complete in Alliance-affiliated factories, and there is no doubt that Bangladesh's RMG industry has a much safer working environment now than when the Alliance arrived. A similar story is to be told about the Bangladesh Accord for Fire and Building Safety. We cannot at this stage speak with an air of finality about the Accord, as it is unclear whether the Supreme Court in Bangladesh will allow the safety body to extend its tenure. The Accord, like the Alliance, has undoubtedly been a force for good in the RMG industry, making it safer, more sustainable, and significantly more competitive in the international markets. It is hoped that whatever the Supreme Court verdict is, the government of Bangladesh and the Accord steering committee can work together to devise a way forward which will be beneficial to our industry and its people. The year 2018 has seen other strides taken by the RMG industry. Earlier this year, we saw the announcement of a new minimum wage of Tk 8,000 (USD 97) for the garment workers. This is a notable step forward for the RMG industry and, although some international NGOs and unions were calling for a larger increase, it has to be borne in mind that this was an over 50 percent increase on the previous minimum wage, which was set five years ago. More general, recent amendments to national labour laws will also help to bring Bangladesh further into line with internationally accepted standards, including those of the International Labour Organization (ILO). In October, new Bangladesh Labour Laws were passed in parliament. Under the new laws, workers' participation required to form trade unions was reduced to 20 percent from the existing 30 percent. In addition, union quashing will be generally more difficult under the new regulations. While in many ways this has been a good year for Bangladesh, the mood has not all been positive. The terrorist attack at the Holey Artisan Bakery in July 2016 placed the authorities in Bangladesh on high alert. This led to the issuing of travel alerts by many countries on foreign nationals visiting Bangladesh, and this undoubtedly impacts the ease of doing business. Thankfully, in the two and a half years since then, we have had plenty of evidence to suggest that the government has successfully secured full security. It foiled a number of planned attacks, making several arrests in 2018, and has taken a position of zero tolerance and committed to uprooting terrorism from the country. Similarly, temporary direct bans on air cargo from Bangladesh were implemented by some countries in the wake of the terrorism concerns. However, many such bans have now been lifted since the government has taken a number of steps to comply with international security standards. The removal of bans will provide a relief to forwarders and exporters that have been compelled to pay extra surcharges to have their cargos screened in a third country before being transported to the target markets. Against the backdrop, garment exports from Bangladesh were sluggish in the early months of the year but steadily picked up. The latest figures from the Export Promotion Bureau show that for the last fiscal year, the apparel sector contributed USD 30.61 billion, or 83.49 percent, to Bangladesh's total exports of USD 36.66 billion. And during July-November of the current fiscal year 2018-19, the growth stood at 20 percent. The challenge for the garment export industry is to maintain and even exceed these excellent figures in 2019. This will be a tough task at a time when wage levels have risen sharply and with uncertainty around the sector due to deliberations regarding the Bangladesh Accord which have been ongoing since September. Can garment exporters rise to the challenge? Of course—but the industry, despite many successes, is still not completely fulfilling its potential. The way to exploit the potential is investing in people, technology and innovation. Well-trained people using cutting-edge industry technology are vital ingredients which drive productivity. Higher productivity in turn leads to increased national income per head and increased wages. Such a path is well trodden by the world's most successful economies—China is the most obvious in terms of textile and garment orientated exporters. There is no reason why Bangladesh should not follow this route. Indeed, there is already evidence among more successful and progressive exporters that a greater focus is now being placed on quality, service, and sustainability when dealing with international apparel brands. Sustainability, particularly, will become an increasingly important point of differentiation for exporters moving forwards. Factory safety will also be an important source of competitive advantage. In this area, Bangladesh's garment export industry now leads the world. For this reason and many others, the world will be watching Bangladesh as we head into 2019. We expect that our apparel industry will be placed to a further elevated position in the coming days.
Source The Daily News
