The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 05 APRIL, 2019

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INTERNATIONAL

New government to announce the proposed industrial policy: Suresh Prabhu

Though the ministry has sent the final proposal of the policy to the Cabinet, but it was not taken up for consideration. Commerce and Industry Minister Suresh Prabhu Thursday said the proposed new industrial policy has been finalised and the new government would announce that. "We have finalised the industry policy. I am sure that the new government will announce that soon," Prabhu said at CII's Annual session 2019. Though the ministry has sent the final proposal of the policy to the Cabinet, but it was not taken up for consideration. It aims at promoting emerging sectors and modernising existing industries. It will also look to reduce regulatory hurdles, cut paper work and support emerging and new sectors. The ministry has planned to set up an elaborate machinery including a steering committee for effective implementation of the policy. This will be the third industrial policy after the ones released in 1956 and 1991. It will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payment crisis. Talking about increasing foreign direct investment (FDI) into India, he emphasised on the need to have a proper strategy to attract overseas inflows in greenfield as well as brownfield projects. "We are trying to bring in more FDI. FDI will come either in greenfield area or it could be through acquisition. So, we must prepare a strategy on both... We should target those companies that can invest because they have investable surplus and same time, we must have a matching sectoral strategy wherein inbound investments can be absorbed," he said. FDI in India during April-December 2018 declined by 7 per cent to USD 33.5 billion. He also listed out steps which the ministry has taken to boost exports and further improve ease of doing business particularly as district level. He said that in 2018-19, India's exports of goods and services would touch about USD 540 billion. The country's exports grew 8.85 per cent to USD 298.47 billion during the April-February period of 2018-19. Further, he added that thousands of start-ups have been recognised by the ministry and it is also working on removing hurdles in their path to promote budding entrepreneurs. Talking about free trade agreements (FTAs), Prabhu said the ministry is in the process of preparing a template to negotiate future agreements by involving all concerned stakeholders. Industry has raised concern that FTAs which was signed by India is not benefitting domestic players. On a question that ease of doing business is not visible on the ground, the minister said they are working at district levels to improve business environment.

Source: Economic Times

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District-level ‘ease of doing business’ ranking to be launched soon: Suresh Prabhu

Minister stresses on need to attract FDI. Commerce and Industry Minister Suresh Prabhu said district level ‘ease of doing business’ ranking will soon be launched to ensure that smaller towns and districts become more business-friendly and have broad-based growth. Back-ground work for ranking districts has already started and a committee has been formed for this purpose, Prabhu said at an interaction at the CII Annual Session 2019 on Thursday. The Minister also the proposed new industrial policy, that targets an annual Foreign Direct Investment inflow of $100 billion, has been finalised and is likely to be announced by the new government. Emphasising the need to attract more FDI that declined in the April-December 2018 period by 7 per cent to $ 33.5 billion, the Minister said India needs to have a strategy to attract overseas investments in both greenfield and brownfield projects. “We should target those companies that can invest because they have surplus and at the same time, we must have a matching sectoral strategy where in inbound investments can be absorbed,” he said. The Minister said India’s exports of goods and services would touch $540 billion and overall trade deficit was likely to decline by about $10 billion for the first time. The country’s goods exports grew 8.85 per cent to $298.47 billion during the April-February period of the current financial year. On Free Trade Agreements (FTAs) being negotiated by the country, Prabhu said the government would interact with the industry more on the issue.

Source: The Hindu

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FTA is key to resolving India-US trade disputes, says advocacy group

An India-US FTA would be able to address the Indian concerns over import of Chinese goods. A free trade agreement between India and the US is a key to resolving their trade disputes as it will cover biggest irritants in ties including tariffs and mobility of Indian professionals, a top American business advocacy group has said. Observing that the relationship between India and the US in the last five years has progressed tremendously, the advocacy group said the interest of the two largest democracies of the world are much more aligned than ever. "The challenge which we have is that we need to work out a trade deal. And when you look forward next five years, I believe India should sign an FTA with the US. Once you have FTA, all this issue of tariffs will go away," Mukesh Aghi, president and CEO of the US-India Strategic Partnership Forum (USISPF), told PTI. An India-US FTA, he observed, would be able to address the Indian concerns over import of Chinese goods. "Because we are concerned about Chinese goods coming to India, that under WTO guidelines, everything with the FTA, India can put as much tariff, it has no impact on US tariffs itself,” he said. "The FTA once signed should have what I call mobility on H-1B. You give FTA partner more exception," he said adding that going forward the two countries need to be creative and bold and drive this relationship on a path where there's much more better understanding on the trade side. The H-1B visa programme, popular among Indian technology professionals, allows foreign workers to obtain temporary authorisation to work and stay in the US. While there has not been much talks between the two countries on this issue, Aghi said he believes that FTA is key to resolving the trade disputes. "Within the FTA, you can have BIT (bilateral investment treaty) also. It covers a lot of stuff. It takes the biggest irritants in the relationship out,” he said. "It provides mobility to Indian professionals who could come into US and work. It provides almost zero tariff for US goods coming into India. I think this has to be a bold move on part of the new government whoever comes in," Aghi said. With India into an election mode, where the government of the day cannot take any major policy decision due to the enforcement of the model code of conduct, Aghi said this would be the recommendation of the USISPF to the new government to "be bold about it, start discussion FTA with the US because for this president (Donald Trump) trade is the biggest thing." If the two countries are able to quickly put an FTA together, where it has impact on mobility of professionals, it's a win-win situation, he asserted. When asked if the two countries are on a collision course on trade and tariff issues, Aghi said, "There is a danger, that the tail is going to start wagging the dog itself and we got to avoid that." "I also sincerely believed that there's enough maturity, we'll find a way to solve this issue out, because at this stage India cannot afford to get into a trade collision with the US neither can US. So, we have to find ways to short out these issues," Aghi said. Observing that tariff is one aspect of the trade dispute. Trump has repeatedly claimed that India is a "tariff king" and imposes "tremendously high" tariffs on American products. Steel tariff, Generalized System of Preferences (GSP) are issues, he said, On March 5, the US decided to withdraw import duty benefits, which was in the range of 1- 6 per cent, under its GSP programme. "I think, the e-commerce policy, the way it was handled is an issue. Data localization is a challenge. We need to look at overall, a process which protects both countries' interest and find a common ground to have a win win value proposition,” he said. Responding to a question, Aghi said some of the policies coming from India in recent past are protectionist in nature. "It has to do either the election now or others. It doesn't help. For example, medical devices. Yes, we put two price cap on them, but at the end, the consumer still paying the same,” he said, adding that it still has not been solved. "As we move forward next five years whoever comes in, should focus on a driving an FTA, which should take a lot of this irritants out in the relationship,” said the USISPF head. He refuted the impression in some quarters in India that that Indian policy is in reaction to protectionist measures from the US. While India has made lots of efforts in last five years, it has moved slightly towards being more protectionist, Aghi said.

Source: Economic Times

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India’s export basket shows a welcome tilt to higher value-added manufacturing, tech driven items: RBI

India is now exporting more of higher value-added manufacturing and technology-driven items, says RBI’s MPS. The changing colour of India’s export basket is giving a cue to the country’s new trade dynamics. One interesting observation noted in the Reserve Bank of India (RBI) first bimonthly monetary policy statement (MPS) 2018-19, relates to a shift in the country’s exports basket -- a clear swing away from primary and traditional low value-added exports to higher value-added manufacturing and technology-driven items. A comparison of key items of exports between 2011-12 and 2018-19 (April-February) reveals that there has been a significant increase in the shares of chemical and related products and engineering goods, and such a shift has imparted a measure of resilience to export demand in a hostile international trading environment, says RBI’s policy statement issued today. This comes as India’s exports face tepid growth. RBI says against the backdrop of slowing global trade and commerce-inhibiting trade tensions, India’s merchandise exports (y-o-y) moderated during Q2 and Q3 of 2018-19 relative to Q1. Attributing the shift to nothing but a slowdown noticed during the last 5-6 months in chemical items’ exports from China to its major trading partners, Satish Wagh, Chairman, Chemexcil, says, “In recent months, major Chinese trading partners including the EU has raised environment-related concerns (with it) and this development has worked in favour of Indian exporters and India is now being regarded as a stable and quality destination for chemical-based items.” Highlighting that China’s administration has also tightened norms in the wake of the explosion at Chemical factory last month in Yancheng city, in the eastern Jiangsu province that resulted in the death of more than 75 people, Wagh added that the blast - one of the worst industrial accidents in China in recent times, has also shaken the confidence of Chinese suppliers significantly. During Q2, the slowdown in Indian exports was accentuated by a decline in shipments of readymade garments, rice and marine products; in Q3, exports growth was pulled down by gems & jewellery, engineering goods, and meat, dairy & poultry. It is evident that export slowdown is broad-based in nature and impacts most of India’s traditionally strong export segments. Ajay Sahai Sahai, Director General & CEO, Federation of Indian Export Organisations (FIEO), however, believes that for all export profiles of a developing country like India, an equal thrust on both the sunrise sectors and traditional ones should be the way forward. “We need to acknowledge that it’s the traditional sectors that help in creating jobs. Going forward, for securing foreign exchange for the country, neither we can solely depend on traditional sectors, nor solely on sunrise and knowledge-based sectors,” said Sahai, adding that while knowledge-based segments such as IT, Pharma, automobile etc, should be encouraged, a thrust on traditional domains such as gems and jewellery, textiles and leather etc, needs to be equally followed. Riding high on the back of the current dispensation’s policy initiatives such as hikes in the interest equalisation rates for micro, small and medium enterprises (MSME) exports from 3 per cent to 5 per cent as well as measures announced in the Agriculture Export Policy (2018), the RBI hopes it will provide a further fillip to exports. “Under services, software exports rode on the upside of a significant improvement in export revenues of major IT companies in Q3. Optimistic forecasts of global IT spending in the next two years also portend well for the outlook of software exports. Lower outgo under income account also helped in containing CAD in Q3,” said RBI.

Source: Economic Times

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RBI cuts repo rate to 6%, lowers GDP forecast to 7.2%

Economy facing headwinds, need to spur private investment, says central bank. The monetary policy committee of the Reserve Bank of India (RBI) for the second consecutive time cut the benchmark lending rate by 25 basis points to 6% on Thursday. It cited concerns over growth as it lowered the GDP forecast to 7.2% for the current financial year from 7.4% projected in the February policy. The central bank said the output gap remained negative and the domestic economy was facing headwinds, especially on the global front. (Output gap refers to the difference between the actual output of the economy and its maximum potential.) “The need is to strengthen domestic growth impulses by spurring private investment that has remained sluggish,” it said. Four members of the committee voted for a rate cut, while RBI Deputy Governor Viral Acharya and Chetan Ghate voted for status quo. The committee maintained the neutral policy stance, which means interest rates can move in either direction. “With the inflation outlook remaining benign, the RBI will address the challenges to sustained growth of the economy while ensuring price stability on an enduring basis,” Governor Shaktikanta Das said. The RBI lowered its inflation forecast to 2.9%-3% from 3.2%-3.4% for the first half of the current financial year and 3.5-3.8% in the second half, assuming a normal monsoon. “Domestic GDP growth is also estimated to slow in 2018-19, with high frequency indicators suggesting slackening of urban and rural demand as well as investment activity,” he said. Bond traders, however, were not impressed with the 25 bps rate cut as they were expecting a higher quantum to address growth headwinds and deficit liquidity. The yield on the 10 year benchmark bond hardened from 7.27% to 7.35%.  “Markets were perhaps anticipating a relatively high degree of dovishness from the policy statement which hasn’t materialised,” HDFC Bank said in a note to its clients.

Hoping for more

Economists said there is still scope for further rate reduction. “We expect another rate cut, with June as our base case. An argument for the cut to be delayed to August is equally strong if the RBI sees reason in factoring in the full-year budget due in July and awaits a clearer picture on monsoon developments,” said Radhika Rao, Economist, DBS Bank. The Governor expressed concern over monetary transmission, while noting banks have only reduced lending rate by 10 bps after RBI reduced the policy rate by 25 bps in February. “More needs to be done.” The State Bank of India, the country’s largest lender, said the marginal cost of fund-based lending rate (MCLR), which is the benchmark rate, can go down by 7-10 bps. “We have already announced a framework that we will link some products with the policy rate. So that transmission will happen through the linking that we have already announced,” P.K. Gupta, managing director, SBI told The Hindu. “As we said whereever there is direct linking (with repo rate) the full pass through will happen. And wherever the linking is through MCLR, we believe 7-10 bps MCLR will go down. Our ALCO (asset-liability committee) will meet and take a call,” Mr. Gupta said. SBI had linked savings bank rate (for over ₹1 lakh deposit) and some short term loans with repo rate, with effect from May 1. The current savings bank rate of 3.5% was linked to a repo rate of 6.25%, so now with 25 reduction in the repo rate, savings bank rate (for ₹1 lakh) will become 3.25% from May 1.

Highlights

* Short-term lending rate (repo) reduced by 25 basis points to 6 per cent

* This is second back-to-back rate cut

* RBI maintains Neutral stance on the monetary policy

* Four out of six MPC members voted in favour of rate cut

* GDP growth projection lowered to 7.2 per cent for 2019-20

* RBI revises downward retail inflation estimate to 2.4 per cent in Q4 FY19.

* MPC notes output gap remains negative and domestic economy facing headwinds

Source: The Hindu

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Workshop on e-Sanchit portal

The Apparel Export Promotion Council, in its bid at educating the trade about the e-Sanchit portal, organised a workshop in Tirupur recently. The speakers highlighted the changes in procedures for import certificate from April 1. A Sakthivel, Vice-Chairman, AEPC. said exporters would now be able to overcome unnecessary time delay as the import certificate can be uploaded on the customs portal directly. With all customs related works made completely online, exporters will be able to get it from anywhere in the country. The Council plans to organise such workshops in all its offices.

Source: The Hindu Business Line

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Why textile cluster near Surat incurring heavy losses daily

Surat is the biggest manufacturer of mandap cloths in the country with more than 250 units manufacturing only mandap cloths. According to Sancheti, there are nearly 1,000 other units which are manufacturing mandap cloths as well as other fabrics. One of the biggest textile clusters of India which had been developed near Surat is incurring daily production loss of nearly 30% due to labour shortage. This is happening when textile units are flooded with orders due to peak summer season. Annual turnover of Surat-based textile units is pegged at `40,000 crore. All these units are heavily depend on migrant labourers. Nearly half of the labour force have gone on a prolonged vacation since Holi. Most of these labourers have not returned to work, citing reasons of marriage season and Lok Sabha elections. “Majority of migrant labourers are coming from Uttar Pradesh, Bihar, Odisha and Rajasthan. Every year, they go to their natives during Holi and returned to work in 15-20 days. However, this year most of the labourers preferred to take a prolonged vacation in wake of Lok Sabha elections and marriage season,” said Dev Kisan Mangani, chairman, textile committee of South Gujarat Chamber of Commerce and Industry (SGCCI). Textile units in Surat are flooded with orders of fabric, dress materials, sarees and home furnishing due to peak marriage season and vacations, said Mangani, adding, “Most of the textile units are short of 30% production due to labour shortfall. On an average, daily minimum dispatch of textile from Surat to other cities is around `125 crore, but the traders are hardly supplying `90 crore worth of textile goods.” The industry is often plagued with labour absenteeism in case of natural calamities or man-made disasters in the states from where migrant labourers are hailing, said Mangani, adding that the permanent solution was to provide affordable housing to these labourers in the vicinity of Surat instead of their respective villages under schemes like Pradhan Mantri Aawas Yojana. “Such measues would ensure the labourers wouldn’t lose their wages and at the same time textile industry would thrive.” Mandap cloth manufacturers in Surat and its neigbouring places are also facing the similar issue. Labourers have not returned to work and are on extended leave in wake of polling in their respective areas, said Devkumar Sancheti, president of Surat Mandap Cloth Association. Surat is the biggest manufacturer of mandap cloths in the country with more than 250 units manufacturing only mandap cloths. According to Sancheti, there are nearly 1,000 other units which are manufacturing mandap cloths as well as other fabrics. Surat’s textile cluster consist more than 6.50 lakh power looms, nearly 4.50 lakh process houses and about 70,000 traders who adds value in terms of making dress material, sareers and ready-made garments.

Source: Financial Express

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Government tightens check against Chinese e-comm players escaping taxes

The government is now asking the post office and courier companies to monitor shipments from China. India has started a major crackdown on online purchases of goods from Chinese ecommerce platforms that were escaping customs duty and goods and services tax, two people with direct knowledge of the matter said. After shooting letters to the tax officers and customs officers, the government is now asking the post office and courier companies to monitor shipments from China. “Up until now, customs department was asked to undertake strict action, now even post office would be asked to scrutinise such purchases,” said a person aware of the development. The Department for Promotion of Industry and Internal Trade (DPIIT) through a written communication had directed that all ports across India to see if the shipments were genuine gifts. The government had stopped import of goods through Mumbai and is now looking to start similar crackdown across India and other ports including Chennai and Kolkata, said people aware of the development. According to the people in the know, many Chinese e-commerce platforms were shipping goods ordered by Indians to various cities claiming these were “gifts”. As per the domestic laws, any gifts received by Indians up to Rs 5,000 don’t attract any taxes. People in the know say that the Chinese retailers such as Club Factory, AliExpress and Shein were allegedly taking undue advantage of the exemption from customs duties on gifts of up to Rs 5,000. “It is often brought to the notice that authorised registered couriers are outsourcing activities without prior permission from or intimation to customs.. and without exercising necessary due diligence and checks,” an official communication by customs department reads. “Investigations revealed that at its peak anywhere around 2,00,000 orders were placed every day through Chinese e-commerce platforms in India which escaped any form of taxes, which are otherwise applicable on imports. After a major crackdown, this has now come down to around 1,20,000 orders per day but that too is high and the government wants that all major ports across India intensify their checks to stop such practices,” said a person with direct knowledge of the matter. Compared to orders delivered by the Chinese e-commerce players, companies like Flipkart and Amazon record an average of around 1 million shipments every day. According to the government investigations most Chinese ecommerce platforms were circumventing Indian taxes by claiming these purchases were “gifts” which are not taxable as per domestic laws. Recently, the government made it mandatory for all the Chinese e-commerce platforms to register domestically. This could help bring them under the domestic laws, said both the people quoted above.

Source: Economic Times

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MP has potential to double its share in country's exports: FIEO

Exporters' association FIEO has said that Madhya Pradesh has potential to double its share in country's exports in next 5 years. FIEO president Ganesh Kumar Gupta, President, FIEO along with DG & CEO and Regional Chairman (WR) met Mr Kamal Nath, Chief Minister of Madhya Pradesh to discuss about exports potential of the State and attract exports centric FDI in pharma, auto components, machineries, textiles, processed agriculture products etc. FIEO offered its assistance to help the State to increase its share from about 1.6% in India's exports to over 3% in next 5 years. Looking into the possibilities of augmenting exports to China and Iran of soyabean and soyameal, non basmati rice, pharmaceuticals, technical textiles, FIEO Chief urged the Chief Minister to lead a business delegation to China and Iran, which have huge demand for such products. Gupta also emphasised the need for identification of more products under GI and marketing of such products through exclusive shops in the departure area of international airports to start with Mumbai and Delhi. FIEO also requested for inland freight subsidy for all products as the cost of carrying cargo from MP to JNPT, in many cases works out to be more than overseas freight. The Chief Minister asked FIEO to work more closely with the State to help it to exponentially increase its exports. Kamal Nath also assured that he will pro-actively look into the issue of freight subsidy and GI products exclusive show rooms at international airports in India.

Source: SME Times

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Once ignored India’s handloom becoming latest trend among millennials

Handloom weaving is largely decentralized, and weaving families are mainly from the vulnerable and weaker sections of society, who weave for their household needs and also contribute to the production in the textile sector. These weaving families are keeping alive the legacy of traditional Indian craft of different regions. The level of artistry and intricacy achieved in handloom fabrics is unparalleled and certain weaves/designs are still beyond the scope of modern machines. The handloom sector can meet every consumer need ranging from exquisite fabrics, which take months to weave, to popular items for daily use. As per the 3rd Handloom report carried out in 2009-10, more than 43 lakh people are engaged in weaving and allied activities. Remarkably around 77 percent of adult weavers are women and only 23 percent are men. Around 23.77 Lakhs looms of varied designs and construction are used by these weavers. A total of 7200 million sq.mtrs of handloom textiles were produced in India during 2014-15 and 2246 Crores of handlooms were exported. In addition to being the 2nd largest employment provider in the unorganized sector (after agriculture), the Indian handloom industry is also unique as a sector which employs over 75% women. In today’s India when young people from rural/semi-rural areas are constantly tempted to desert their traditional vocations and migrate to urban areas for employment, the handloom sector provides these weavers/artisans, the opportunity to earn decent wages and at the same time preserve India’s beautiful weaving heritage. Despite being such a large industry and more importantly where 75% of the artisans are women, this section has not received the recognition which they deserve. There are few E-Commerce platforms that are touching lives of more than 1000 weavers every month in a mission to democratize access to fine Indian handlooms sourced from a plethora of weaving clusters across the country. Ethicus is one such company which is being widely appreciated for their contribution in this sector. It is an online platform which only deals in organic garments. Ethicus is a Farm to Fashion initiative of the husband and wife duo of Mani Chinnaswamy and Vijayalakshmi Nachiar. It also has the distinction of being India’s first Organic & Sustainable fashion brand. Established in 2009, it was launched with the aim to revive the rich local hand weaving traditions of the area through Product Development & Design Intervention. Appachi Eco-Logic Cotton (P) Limited is the company behind the brand ‘Ethicus’ based in Pollachi Tamil Nadu, India. It was established in 1946. The company has pioneered India’s first Cotton Contract farming model and grows the finest Eco-logic Cotton in the Country. The best thing about this company is that along with its products it also promotes the artisan who has prepared the product. On every product, there is a label which mentions the name of the artisan along with the pic of the person and how much did it take to complete the product. Today, Ethicus weavers have gained a social status where they are no longer considered as paid labourers but ‘’ARTISANS”. All the products by this company are made from their own home grown cotton. Now, Ethicus is coming to Delhi this week where they will be showcasing their beautiful products in an exhibition. They have named the exhibition as ‘Crossroad’. They have named it cross road because this season they took inspiration from the lines, angles & blocks of the iconic ‘Madras Checks’ & the colours of the ‘Birds of the Anamalais & Coimbatore’ to create a line of fresh colourful sarees with unique weaves and textures. The exhibition is taking place on 5th and 6th April at Indi College, Hauz Khas. It is a golden opportunity for Delhites to enjoy the top class products made from pure cotton and colours. Digital platforms have the potential to innovate and scale up volumes of Indian handloom products, both in the domestic and international markets. This has huge potential for the Indian economy as it holds the key to providing large scale employment to over 4 million weavers spread all over the country in rural & semi-rural areas. There are few E-Commerce platforms that are touching lives of more than 1000 weavers every month in a mission to democratize access to fine Indian handlooms sourced from a plethora of weaving clusters across the country. In the new Digital economy, top class digital platforms could be the ‘x-factor’ that will catalyze the widespread usage and growth of traditional handlooms. And thus help in weaving an alternate story for the Indian weaver.

Source: Udaipur Kiran

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How handloom sarees are weaving a storm in Bengaluru

A sea of indigo greets visitors walking into the Bangalore International Centre at Domlur. Hanging loftily from the ceiling are beautiful blue handwoven sarees, a tribute to the art of handloom. The three-floor exhibition centre is draped in hues of yellow, red and white, with intricate threadwork like the Bengali jamdani and three shuttle weaves. The Registry of Sarees — a citybased organisation enabling design and curatorial projects of handmade textiles — in collaboration with textile curator Mayank Mansingh Kaul, has put on display 52 sarees from a collection of 108 designs, all part of a 2003 exhibition titled ‘Khadi – The Fabric of Freedom.’ This time around, however, Kaul says, they wanted to refrain from using the term khadi. “There’s a lot of difference in Gandhi’s idea of khadi and the khadi we see today. It’s now become a government institution. It has become a high-end luxury fabric and the art and history behind it seems to have faded into the background.” The exhibition, open till April 6 in Bengaluru, recently travelled to Chirala, a small town in Andhra Pradesh, famous for its handloom industry producing ikat weaves. It was primarily for the weaving community. They set it up in a government school where more than 80 weavers came together to study the fabric and techniques. It was more like a workshop, Kaul says. “The weavers told us that the way we displayed the fabrics, it made them feel like artists, not labourers.” The second leg was at Coimbatore’s iconic Lakshmi Mills. “There, too, we got a good response, but, interestingly, a lot of people who visited were upset that none of the fabric was available to purchase,” Kaul says. Efforts like these, Kaul says, are meant to facilitate the study of design and quality of textiles, to reflect on their relevance today and for the future. Ask about region-specific weaves and the efforts for their revival, Ally Matthan, the co-founder of the Registry of Sarees, says reducing textiles to regions is detrimental, an opinion echoed by Kaul. And why not, when the world of textiles is so fluid, like for example Kanchipuram designs are being done on Benaras sarees, the Kota Doriya from Rajasthan has a GI tag from Mysuru, Chanderi, a traditional weave from Madhya Pradesh, is being used on Benarasi sarees. “Why do you want to regionalise the art? We often get caught up with the personal sentiment when it comes to sarees handed down from generations. But rarely do we think about the product, the effort and skill put into it,” says Mathhan, whose #100saree pact a few years ago created quite a wave on social media. A resource and study centre in Domlur has been set up for this purpose. Apart from curatorial departments, the centre also provides the environmental conditions necessary for the long-term preservation of these fragile works of art and a research facility for the public. A library, too, is in the works. “It’s all about democratisation of the handloom and building awareness. There is a lot of misinformation about textiles out there. This needs to change,” Matthan says.

Source: Economic Times

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Experts urge Kenya to diversify export to help cut trade deficit

Kenyan experts on Thursday urged the government to diversify the country's export base to help curb rising trade deficits which they said grew 1.2 percent in 2019. The experts, from the Institute of Economic Affairs (IEA) and the Kenya Association of Manufacturers (KAM), said the government could enhance its ability to widen sources of revenue by increasing investment in a broad range of sectors. "We remain constrained by the current export structure that relies on a few export products and markets," said KAM research and fiscal policy manager Simon Githuku. "It is time we diversified if we are to address the ballooning trade deficits." Githuku told a forum in Nairobi that having a new export structure will mitigate adverse effects of trade fluctuations. According to latest World Bank statistics, the gap between imports and exports climbed to 1.15 trillion shillings (10.15 billion U.S. dollars) in 2018, up from the previous year's 10.13 billion dollars. "We... require a clear regulatory framework and workable incentive packages to condense the trade deficits," Githuku said. The trade deficit is denying the country an opportunity to create more jobs with local firms losing out to foreign manufacturers in the long run, he said. Joram Gicheru, an IEA associate, called on the government to give subsidies to local producers of agricultural products to reduce the cost of production and improve volumes and quality of the products. "One of the ways out from this mess is by striving to double volumes of our three top exports -- tea, coffee and horticulture -- and to do that it means we need to improve our productivity," he said. The answers to the deficits also depend on how the government positions its manufacturing sector with a sharp focus on alternative products such as textile, chemicals, machines, agro-processing, blue economy and leather, Gicheru said. He called on policymakers to take advantage of the Africa Continental Free Trade Area (AfCFTA) initiative, which offers African countries a great long-term opportunity to address technical barriers to trade. The agreement will increase intra-Africa trade as well as enabling Kenya and other African countries to attract investment, he said, noting that the AfCFTA provides new export opportunities for African products. Once in place, the AfCFTA will cover a market of 1.2 billion people and a combined gross domestic product (GDP) of some 3 trillion dollars. "We must position ourselves strategically to reap from the regional pact, which aims to establish a single market that will spur industrialization, infrastructural development, economic diversification and trade," Gicheru said. Fred Simiyu, who is in charge of international trade at the Ministry of Trade, said the government will implement initiatives to add value to the free trade agreement. Richard Kariuki, regional head of Governance Beta Healthcare International, urged the government to offer favorable policies that make it easier for pharmaceutical and health industries to operate smoothly. "The government needs to give subsidies and come up with favorable tax policies on medical equipment, capital expenditure and raw materials as well as honoring obligations for health sector such as tax refunds, improved management as well as partnership with private entities to foster a coherent framework for UHC," he said, referring to universal health care.

Source: Xinhua

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India One Of Highest "Taxing Nations" In The World, Says Donald Trump

Washington: India is one of the highest "taxing nations" in the world, US President Donald Trump said as he again slammed the country for imposing 100 per cent tariffs on American products, including the Harley-Davidson motorcycles. Such a high tariff is not fair, Donald Trump said on Tuesday during National Republican Congressional Committee Annual Spring Dinner in Washington. Early this year, at a White House event to announce his support for reciprocal tax, Donald Trump had said he was satisfied with India's decision to reduce the import tariff on Harley-Davidson motorcycles from 100 per cent to 50 per cent. "Even this is not enough, this is okay," he said at that time. Donald Trump has repeatedly claimed that India is a "tariff king" and imposes "tremendously high" tariffs on US products. "I got a call from Prime Minister (Narendra) Modi of India. They're one of the highest taxing nations in the world. They taxed us 100 per cent," the US President said. "They charge us 100 per cent tariffs on goods. So they send a motorcycle, and they make a lot of them. They send them to our country, we charge them nothing. We send a Harley Davidson to India and they charge us 100 per cent. Not fair, okay. Not reciprocal. It's not fair," Donald Trump said. During his address to the National Republican Congressional Committee Annual Spring Dinner, Donald Trump explained how his trade policies are successfully addressing the balance of trade issue with other countries. Trade talks with China are going on very well, he informed. Top trade officials from US and China are holding talks to negotiate a comprehensive trade deal. "I think we're doing very well. They need the deal more than we do. They need the deal. And they getting hurt badly with they're paying 25 per cent on $50 billion worth of technology stuff and they were going to pay 25 per cent on another $200 billion," the US President said. Donald Trump said his administration is fixing broken trade deals to protect US workers. "We are standing up to China's chronic trading abuses and theft of intellectual properties and so many other things that they've done to us," he said. "I don't know how you people allowed this to happen for so many years. You've been here longer than me. But they really have, they've taken advantage of our country. And you know what? I respect them for it. I say it. We should have been doing that to them," he said.

Source: Financial Express

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Chinese companies ink agreement to invest in textile sector

Recognising Pakistan’s potential as the world’s 4th largest cotton producer, Chinese investors have signed a cooperation framework agreement with government of Punjab. Chinese investors appreciated Pakistan’s textile and textile value addition sector and shown interest in investing in the Punjab. In this regard, a four party cooperation framework agreement was signed between China Railway 20 Co. Pakistan (pvt) Limited, Shanghai Yuanyi Industry Company Limited, Pak-China Investment Company Limited and Punjab Board of Investment and Trade (PBIT). Representatives from China Railway 20 Co. Pakistan (Pvt) Limited, Shanghai Yuanyi Industry Company Limited and Pak-China Investment Company Limited held a joint meeting at the Punjab Board of Investment and Trade. The Minister for Industries, Commerce and Investment, Mian Muhammad Aslam Iqbal, Chinese Consulate General Long Dingbin and CEO PBIT, Jahanzeb Burana also participated in the joint meeting. All participants in the meeting were briefed about the core functions of PBIT as an investment promotion agency. Aslam Iqbal stated that the government resolves to strengthen the economic bond between both countries in light of China Pakistan Economic Corridor and Belt &Road Initiative. Participants of the meeting expressed a mutual resolve to work together and take things forward in a positive manner.

Source: The Nation

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India, Ukraine discuss ways to boost bilateral trade

India and Ukraine rec/ently discussed ways to enhance bilateral trade and investments to boost economic cooperation at the fourth meeting of India-Ukraine Working Group on Trade and Economic Cooperation in New Delhi. Both sides agreed that trade was far below the potential and decided to increase cooperation in leather, tobacco, tea and gems and jewellery. The Indian delegation was led by Bidyut Behari Swain, additional secretary, foreign trade (CIS), department of commerce, ministry of commerce and industry, while the Ukrainian side was led by Oleksiy Rozhkov, director of the directorate for international trade and economic cooperation and European integration of the ministry of economic development and trade, according to a statement from the Indian ministry. During April-February 2018-19, India’s exports to Ukraine stood at $305.73 million, while imports were at $1.92 billion. Both sides should share the mandatory requirement of inspections and regulations to be fulfilled at the time of exporting or importing any product so that any delay related to such inspection could be reduced, the statement said. India expressed interest in exporting agricultural items such as apples, bananas, cake of soyabeans, cotton, coffee, cucumber and gherkins, flour of wheat, grapes, groundnuts and maize. India also asked Ukraine to identify a nodal agency that can cooperate with its National Small Industries Corporation (NSIC) in the small and medium enterprises (SME) sector in the implementation of a technology incubation centre in Ukraine, facilitating enterprise-to-enterprise cooperation, exchange of business delegations and consultancy in development of SMEs there. (DS)

Source: Fibre2fashion

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Italian textile machinery to come together in Frankfurt

A significant contingent of Italian textile machinery companies will be on hand at the upcoming edition of Techtextil, the most important global event for technical fabrics and nonwovens that takes place from 14-17 May in Frankfurt. The technical/innovative textiles sector has developed at a very high pace in recent years. In 2010, global production of textiles for technical applications and nonwovens amounted to EUR 37 billion, rising to EUR 60 billion in 2018. In Europe, over 30% of the textiles sector revenues currently derive from the production of textiles designed for technical or innovative uses. Germany is the sector’s primary European producer, at around EUR 6 billion. “Growth in the industry has resulted in a substantial increase in demand for specialised ad hoc machinery, with the product ranges of Italy’s textile machinery companies broadening to the new needs of customers operating in this specific sector. ACIMIT estimates that over 100 of its associated members are working for the sector,” the trade association reports. The whole of the world’s textile machinery industry will come together in Frankfurt at Techtextil, the primary event for technical fabrics. Around 30 Italian textile machinery companies are slated to exhibit in Germany. Of these, 15 will be on hand at the special exhibition area organised by the Italian Trade Agency and ACIMIT. These companies are all ACIMIT associated members and include 4M Plants, Bematic, Bianco, Color Service, Corino, Fadis, Ferraro, Gualchieri e Gualchieri, Loptex, Mesdan, Sicam, Stalam, Textape, Unitech, and Zappa. “Still, Italy’s machinery companies present in Germany represent just a part, albeit a significant one, of the total number of Italian producers of machinery for the technical textiles and non-woven fabrics sector,” the association comments. ACIMIT represents an industrial sector comprising around 300 manufacturers, employing close to 12,000 people and producing machinery for an overall value of about EUR 2.5 billion, with exports amounting to more than 85% of total sales.

Source: Innovation in Textiles

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Epic Group to enter India; revolutionise garment manufacturing industry

Hong Kong-based garment manufacturing company, Epic Group is planning to enter India and set up its first manufacturing unit in Ranchi spread across the minimum built-up area of around 20,000 sq. mt. to start with. The manufacturing unit in Ranchi is equivalent to the smallest factory of the company in Bangladesh, the biggest manufacturing hub for the Epic Group. “We will start with a target unit of about 4,000 people which is a gradual ramp-up to be achieved within the time frame of 24 months. Initially, we will start with an outlay of US$ 20 million in the form of capex,” says Ranjan Mahtani, Chairman and Owner, Epic Group. The brand is planning to source 90 percent of its raw material from India, with Mahtani saying that they are already buying huge amounts of raw material from four – five different suppliers in India.

How India Has an Edge

The brand is confident about establishing its business in India as it believes the country has an edge over other nations. “Compared to most of the countries we are in, India is more vertical as far as textiles are concerned, so that should add more speed into our business. We still need to decide on things like where fabric could be coming from – Ahmedabad or down South – and should we manufacture in India itself versus how it’s being done right now – transported to these foreign countries which are quiet far away,” says Mahtani. Another reason, says Mahtani, that the company has decided to venture into India is the value addition the country has to offer first in terms of embellishment and embroidery abilities. “Aside from this, one very important reason for venturing into India is its booming economy, which has There is a lot of government support and a lot of maturity as far as financial institutions and services are concerned. This is the positive environment that we are looking forward to working in,” he adds. Also, with the way trends are changing and fashion is evolving, the brand is looking forward to working with different skill-sets and believes that India will add to these skill-sets and create a more versatile supply chain model.

HR Solutions

Epic Group believes that it is its moral and fundamental responsibility to provide workers, staff and associates with a safe working place irrespective of where they are. Mahtani says, “We provide day-care and medical facilities and we do not think that we are doing anything extra for the employees. These are part and parcel of the facilities in any part of the world. The kind of lighting and chairs that we provide, safety facilities –electrical or within the building – we have brought in a certain standard of comfort for our employees and we will continue improving on this. Our first priority is to provide a safe place to our workers to work in.” “Aside from this, the brand has a lot of incentive schemes where the worker is part of their profitability. As workers get more efficient and start learning how to work on the machines, they start getting more than their minimum cut and that is what has worked for the brand so far,” he explains. The brand usually employees more women than men. Explaining the reason behind this, Mahtani says, “We do not recruit more women as a matter of choice. We do not distinguish between male and female workers, but we have found that in a large number of countries – for instance China, Vietnam, Bangladesh or Ethiopia – women are more talented as far as tailoring is concerned. We believe in hiring the right people to do the right job.” Epic Group is also planning on changing the impression of high attrition rates in India. “We will do what we have done in other countries. Some of our factories in Bangladesh the attrition rate is 1 percent whereas other factories have 5-6 percent. Our employees feel more secure, they feel that they are the part of the company, they know what the leadership is and what is their ultimate goal. There is nothing fancy about bringing attrition down, it is all about getting the basics right,” says Mahtani.

Innovation – The Key to Success

The manufacturing facilities of the brand are designed to combine traditional skills and modern technology to serve a new era and evolving consumers. The brand is planning to replicate the same here in India. “We are going to put a lot of emphasis on innovation and automation into the factory. Over the years, we have learnt that everything is evolving. We are going to implement Japanese Lean Kaizen technology. Lean is a methodology that eliminates waste and boosts efficiency. Kaizen means continuous improvement. This course merges both philosophies. Lean Kaizen helps you get rid of waste and continuously implement best practices. Our aim is to keep up with evolving technology,” he states.

Source: Indian Retailing

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A.T.E. launches automation division for textile mills

A.T.E., an engineering group offering solutions in manufacturing, industrial sales, distribution, and services, has launched an automation division under its TEG (Textile Engineering Group) business unit. The division has been launched as a direct response to customer’s requests that A.T.E. help them improve the performance of their installed machines. Textile mills continuously seek to automate their processes and upgrade their machine and process controls so as to produce with better quality and lower costs. In some cases, they accomplish their goals through the purchase of new equipment, or through machinery overhauls with new parts. In other cases, the path to improvement requires a tailor-made approach – as the mills have machines that are in generally good mechanical condition, but need new kinds of control, or add-on systems for automation. Such customised projects in textile mills require to be executed by reliable partners with in-depth textile knowledge. A.T.E., endowed with deep domain knowledge in textile engineering and textile processes, has built-up a team of experts to undertake automation and upgrade projects. Machines are upgraded using modern retrofits and the latest software, resulting in significant improvement in the performance of these machines, both in terms of productivity and quality, the company said in a media statement. A.T.E. can undertake machine upgrade/automation of textile machines like weaving preparatory like sizing and warping machines; processing like Stenter/merceriser/dyeing ranges/pad dry/pad steam; denim processing lines, and POY/FDY winders, extruders, PSF lines, bale press, chip conveying, and drying for synthetics. Apart from custom machine upgrade/automation, the automation division has also in its portfolio some productised solutions, such as a fancy yarn system, Fancy Spin, to add value to yarn, which would help mills realise higher value for their yarn. Another such productised system is the pre-reduced indigo dosing systems for denim manufacturing (bulk as well as portable). These dosing systems help in maintaining consistent quality without any shade variation along millions of meters of denim produced and also help in reducing the load on the wastewater treatment plant. “We have a team of experts with long experience in executing such projects smoothly. Customers can count on us for excellent support at all times of the project execution, and also post execution,” Vikas Banduke, vice president – automation, who is responsible for this new business at A.T.E. said.

Source: Fibre2Fashion

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US clothing retail sales down 0.5% in February 2019: NRF

US retail sales were down 0.7 per cent in February seasonally adjusted from January but up 2.7 per cent unadjusted y-o-y due to delays and revisions related to government shutdown, said the National Retail Federation (NRF). Clothing and clothing accessory stores were down 0.5 per cent y-o-y and down 0.4 per cent month-over-month seasonally adjusted. NRF’s numbers are based on data from the US Census Bureau, which said that overall February sales – including auto dealers, gas stations and restaurants – were down 0.2 per cent seasonally adjusted from January but up 2.2 per cent unadjusted year-over-year. February’s results build on improvement seen in January, which was up 1.9 per cent monthly and 4.8 per cent year-over-year, according to revised data. “The weaker-than-expected February retail sales numbers reflect colder weather and increased precipitation that kept shoppers home but were also skewed downward because of the government’s upward revision in January’s results,” said NRF chief economist Jack Kleinhenz. “The after effects of the erratic stock market, the government shutdown and slower tax refunds this year also likely played a role. It is important to look beyond the February figures and focus on the very significant revision to January retail sales, which shows that the consumer has not forsaken the economy as some previously claimed. We still expect growth to pick up, fuelled by strong fundamentals like job and wage growth that are driving increased consumer spending. The consumer will continue to provide direction and strength to the US economy in the months ahead.” NRF is forecasting that retail sales during 2019 will increase between 3.8 per cent and 4.4 per cent to more than $3.8 trillion. The forecast is subject to revision as more data is released in the coming months. (PC)

Source: Fibre2fashion

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Applied DNA supports Trump's anti-counterfeiting memo

Applied DNA has announced its recognition of and alignment with the memorandum signed by President Donald Trump to help protect American consumers, manufacturers, and factory workers from counterfeiting. Applied DNA provides molecular technologies that enable supply chain security, anti-counterfeiting, and anti-theft technology, and product genotyping. The company is using its patented molecular tagging to fight illegal counterfeiting across a variety of industries for its customer base including retailers, consumer product manufacturers of textiles and pharmaceuticals, and the United States Government, assisting in securing the Department of Defence (DoD) supply chain, according to Applied Sciences. There are specific programmes to provide commercial, law enforcement, and DoD counterfeit risk mitigation. Applied DNA has definitive agreements with leading manufacturers for products sold at retail in Bed Bath & Beyond, Costco, Amazon, and other retail stores and online commerce sites. Since 2011, the company’s technology has been protecting microcircuits for DoD with nearly a million parts tagged. Development contracts since 2014 have engaged Defence Logistics Agency (DLA), the Army, USDA, Missile Defence Agency, and other trade and intelligence agencies to protect critical industrial components such as bearings, lubricants, gaskets, electronics equipment, and packaging. Currently running is an anti-counterfeiting technology-expanding competitive-bid development contract awarded in June 2017, funded by the Office of the Secretary of Defence on behalf of DLA, with collaboration from the army’s Combat Capabilities Development Command (CCDC) Chemical Biological Centre. In European courtrooms, the company’s award-winning technology has been used as evidence and its forensics scientists have testified as expert witness in support of cases which have resulted in convictions of 138 offenders for a total of 670 sentence-years in crimes related to ATM cash thefts, automobile-parts theft and resale online as new, and law enforcement stings including drug enforcement. Applied DNA’s approach to authenticate and protect global supply chains is based on the company’s patented CertainT platform of tag, test, and track, which provides benefits in anti-counterfeiting, diversion, IP protection, and claims substantiation such as country of origin and sustainability. (GK)

Source: Fibre2fashion

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