The Government of India has launched a scheme namely, Trade Infrastructure for Export Scheme (TIES) from FY 2017-18 with the objective to assist Central and State Government Agencies for creation of appropriate infrastructure for growth of exports from the States. The Scheme provides financial assistance in the form of grant-in-aid to Central/State Government owned agencies for setting up or for up-gradation of export infrastructure as per the guidelines of the Scheme. The scheme can be availed by the States through their Implementing Agencies, for infrastructure projects with overwhelming export linkages like the Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, SEZs and ports/airports cargo terminuses. The Scheme guidelines are available at http://commerce.gov.in. Under the TIES Scheme, a total of 28 export infrastructure projects have been provided financial assistance during FY 2017-18, 2018-19 and 2019-20 (as on 1st July, 2019). The state-wise and Year-wise details of projects, located in various States/UTs, is given at Annexure-I. The Government of India strives to ensure a continuous dialogue with the State Governments and Union Territories on measures for promoting exports and for providing an international trade enabling environment in the States, and to create a framework for making the States active partners in boosting exports from India. Under the Foreign Trade Policy (FTP), DGFT operates various Export promotion schemes such as Advance Authorization, Duty Free Import Authorization, Export Promotion of Capital Goods, Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). To give effect to these schemes, Central Board of Indirect Taxes and Customs has issued various exemption notifications. The details of various exemptions provided for these schemes are given in the FTP. MEIS was introduced in the FTP from 01.04.2015, providing rewards for exporters of specified goods. The objective of the MEIS is to offset infrastructural inefficiencies and associated costs involved in exporting goods/products which are produced/manufactured in India. The scheme incentivizes exporters in terms of Duty Credit Scrips at the rate of 2, 3, 4, 5, 7 % of FOB Value of exports realized. These scrips are transferable and can be used to pay certain Central Duties/taxes including Customs Duties. As regards promotion of trade in services, Government of India provides fiscal benefits through Services Exports from India Scheme (SEIS) for some identified sectors. Government of India is following a multi-pronged strategy, including negotiating meaningful market access through multilateral, regional and bilateral trade agreements, trade promotion through participation in international fairs/exhibitions and focused strategies for specific markets and sectors to promote Trade in Services. An ‘Action Plan for Champion Sectors in Services’ has also been approved in February, 2018 to give focused attention to 12 Champion Services Sector like Information Technology / Information Technology Enabled Services, Tourism and Hospitality Services and Medical value Travel. The Agriculture Export Policy was launched in 2018 to harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers’ income. This comprehensive “Agriculture Export Policy” aims to increase agricultural exports by integrating Indian farmers and agricultural products with the global value chains. Section 10AA of the Income-tax Act, 1961 provides for deduction of profits and gains derived from the export of articles or things or from services in respect of newly established Units in Special Economic Zones. Such deduction is allowed to an entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005, from his Unit, who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006, but before the first day of April, 2021. The deduction is allowed as under: hundred per cent of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and fifty per cent of such profits and gains for further five assessment years and thereafter. For the next five consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the "Special Economic Zone Re-Investment Reserve Account") to be created and utilized for the purposes of the business of the assesse in the manner laid down.
Source: PIB
As per the latest available estimates of Gross Domestic Product (GDP) by National Statistical Office, the Gross Value Added (GVA), at constant prices (2011-12), for the manufacturing sector registered a growth of 6.9 per cent in the year 2018-19 as compared to a growth of 5.9 per cent in the year 2017-18. As per the 73rd Round of National Sample Survey (NSS), conducted by National Sample Survey Office, Ministry of Statistics & Programme Implementation during the period 2015-16, the estimated number of workers in unincorporated non-agriculture MSMEs in the country engaged in different economic activities excluding the MSMEs registered under (a) Sections 2m(i) and 2m(ii) of the Factories Act, 1948, (b) Companies Act, 1956 and (c) Construction activities falling under Section F of National Industrial Classification (NIC), 2008, were 11.10 crore. Out of 11.10 crore, 3.60 crore persons were employed in manufacturing. The Government has taken several steps to promote and stimulate the growth of MSME sector in the country. These include simplification of the registration process through a one page Udyog Aadhar Memorandum (UAM), introduction of the ‘MSME SAMBANDH’ portal for monitoring the implementation of public procurement policy for the MSEs and launching of the ‘MSME SAMADHAN’ portal for enabling MSMEs to directly register their cases relating to delayed payments. Further, schemes/programmes including Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme, Credit Linked Capital Subsidy-Technological Up-gradation Scheme (CLCS-TUS) to support MSMEs in their technology up-gradation, Cluster Development Programme, Marketing Development Assistance and Skill/Entrepreneurship Development Programme etc. are also implemented to boost the MSME sector. This information was given by the Minister of State in the Commerce and Industry, Som Parkash, in a written reply in the Lok Sabha today.
Source: PIB
To impart the knowledge about Goods and Service Tax (GST) and procedures for implementation, GST cell in association with ni-msme has proposed to conduct training program on GST to have a better understanding about the new tax regime. The three days certification program will start from July 29 here, and will end on July 31, 2019. The objective of the program is to impart the knowledge about Model GST law and to provide valuable insights on impact of GST on Industry/Trade/ Services. In addition, it will give practical knowledge of the different procedures required under GST Act and Rules such as Registration, tax invoices, Filing of Returns, availing Input Tax Credit, compliance, Refunds and other documentation requirements. The target participants for the program are Entrepreneurs of Industry and trade, Key managerial personnel, Professionals, Tax consultants, Academicians and students. On the successful completion of program, the participant will be able to understand the transitional issues relating to migration from Current indirect tax structure to GST regime. GST is a game changing reform for the Indian economy by creating a common Indian market and reducing the cascading effect of tax on the cost of goods and services. GST has a large ramification on business processes and there is a grave necessity for the industry members, entrepreneurs of Industry/Trade, Managerial personnel, Finance managers and professionals to ensure compliance with the Act, and for benefitting from the seamless pass through of Tax to the final consumer.
Source: KNN India
The key products/industries that will be majorly impacted include dairy products, items of gold or silver, chemical products, engineering sector and textile goods, participants at a roundtable said here on Wednesday. The Indo-American Chambers of Commerce (IACC) has said that preferential trade status under the Generalised System of Preference (GSP) conferred over the last three decades between India and US should continue for enhancing trade between the two countries. The termination of preferential trade status — which has significantly contributed to the growth of trade between the two countries — for India under GSP from June will negatively impact the Indian exports of goods to US which were earlier eligible for GSP benefit, members of the Western India Council of IACC said. The key products/industries that will be majorly impacted include dairy products, items of gold or silver, chemical products, engineering sector and textile goods, participants at a roundtable said here on Wednesday. Further, due to the rise in duty rates for aluminium/steel, exporters in India have suffered a setback and the Indian government has raised a retaliation claim to recover the cost to the tune of $241 million levied on steel/ aluminium exports, they said. On the other hand, the impact on the US companies due to removal of GSP will cost American businesses over $ 300 million additional tariffs every year. “New tax will result in job losses, cancelled investments and cost increases for consumers. US companies do not get access to the Indian market,” they said. IACC proposed that new ventures may evaluate setting up of processing units in the United States, especially in areas like defence related textiles and clothing. “This shall be a win-win situation for both the countries in a way that the basic raw materials such as yarn and fibre can be exported from India to US markets leading to value addition and employment in the US,” the industry body said.
Source: Indian Express
On the World Youth Skills Day, the Ministry of Skill Development and Entrepreneurship (MSDE) celebrated the fourth anniversary of the Skill India Mission on Tuesday. A clutch of big-ticket announcements and signing of MoU’s to empower the youth with appropriate skill-training marked the celebrations. The event saw several ministers and government officials who came together to show their commitment to the avowed mission. Dr KP Krishnan, secretary, Ministry of Skill Development and Entrepreneurship, opened the ceremony by welcoming all delegates and guest. He said, “The Ministry would focus its efforts on the informal and unorganised sector especially the small and medium enterprises.” The event was graced by Nirmala Sitharaman, Minister of Finance and Corporate Affairs as the chief guest. Sitharaman pointed towards how the Skill India Mission has offered new avenues of livelihood to the youth of the country by urging young people to follow their heart in pursuing their ambitions. She said, “If you want to acquire a particular skill and you are comfortable with it, you should utilise it to the fullest. Do not settle for something just because it is easy. Strive for what you want and put in your heart to achieve it. Earlier, it was not easy to look for opportunities but today, through the help of the Ministry, the government has created an ecosystem for training. I would urge each one of you to utilise whatever is given to you by the government. Dr Mahendra Nath Pandey, Minister for Skill Development and Entrepreneurship, said, “I want to congratulate all those who have been associated with Skill India in its four-year journey. An idea that germinated with our Prime Minister’s vision of a Skilled India has now reached its next phase. The foundation has already been laid. It is essential that there is seamless convergence across skill development programs, for which we seek support of all ministries, states and industries.” He added that a number of initiatives have also been announced, “which will engage the youth in various skills designed to cater to new avenues of employment. We have placed emphasis on promoting apprenticeship and have rationalised the stipends to increase participation in this program.” The highlight of the event was Kaushal Yuva Samwaad, an open dialogue with the youth to discuss potential issues and solutions from the candidates’ perspective. The two-week consulting programme was organised on a nation-wide scale to engage young job-seekers and understand their views and ideas, identify opportunities to help the Ministry in building on existing programmes and improving overall efficiency of its projects. The future recommendations would be compiled and referred for further program implementations. The MSDE also announced the launch of Kaushal Pakhwada, a 15-day campaign, which began from July 16, where sessions and workshops will be conducted across the country to aspire young trainees under the Skill India Mission and promote the initiative among them. The event also witnessed an introduction of the 48-member contingent, which will be representing India at World Skills International Competition, which will be held from August 22 to 28 in Kazan, Russia. These young skill trainees, below 23 years, will be competing in 44-skills against their peers from 66 other countries.
MoUs signed
- Between Retailers Association’s Skill Council of India, Ness Wadia College of Commerce and McDonald’s for degree apprenticeship in the retail sector.
-Between the Media and Entertainment Skills Council, Shri Shankarlal Sundarbai Shasun Jain College for Women, Bot VFX Limited and Vikatan Group for degree apprenticeship in the media sector.
-Between the National Skill Development Corporation (NSDC) and the State Bank of India (SBI) and another with HDFC bank to promote apprenticeship training in the financial sector.
- In another MoU, Urban Clap collaborates with NSDC to ensure that it has a workforce, which is 100 per cent Skill India-certified through recognition of prior learning’s (RPL) programme under Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
-Between RDSDE (Regional Directorate of Skill Development and Entrepreneurship) Punjab and Trident group for women empowerment.
- Between the Directorate General of Training (DGT) and Dassault Aviation for the launch of Aerostructure Fitter and Welder program at ITI, Nagpur
Other highlights
- Designed by the MSDE and the Ministry of Human Resource and Development (MHRD), a degree apprenticeship programme in collaboration with industry and academia has been launched. The dual vocational education program shall have apprenticeship or on-the-job training embedded in a three or four year university degree programme.
-The SBI shall be engaging 5,000 apprentices as banking front office executive and tele-caller in FY19-20.
-The HDFC bank will be hiring 10,000 trained professionals under the ‘job ready’ programme, designed and created in association with NSDC, over the next three years.
-In collaboration between NSDCC, BFSI Sector Skill Council and India Post Payments Bank, 170,000 grameen dak sewaks will be certified as banking correspondents under RPL program of PMKVY. Additionally, the directorate general of training also announced the establishment of a new Japan India Institute for Manufacturing (JIIM) in Haryana and new courses in ITIs around training on Electric Vehicles (EVs), in line with an avowed intention of the government to work for greener energy sources. Ravi Shankar Prasad, Minister for Law and Justice, Communications, Electronics and Information Technology, said skilling has been the backbone for all initiatives and the driving force behind this are the youth of India. “The concept of Skill India has a unique interplay with other visionary schemes, including Make in India, Start-Up India, Stand-Up India, and Digital India. All of these will have to work in tandem for them to succeed. The Indian economy has grown manifold to become the third largest in the world now. Today, our country’s youth aspire to be job-givers and not job-seekers and this has given rise to the number of start-ups in the country. India has a unique demographic dividend and I urge the Minister of Skill Development, Dr Pandey, to match the aspiration of the youth with the global demand.” Narendra Singh Tomar, Minister of Agriculture and Farmers’ Welfare and Minister of Rural Development, added, “Skill training has always been an integral part of the country’s culture and traditional education system. Our ITI ecosystem has been one of the most credible and long-standing network but it is only now, that these institutes are being modernised through improvised curriculum, state of the art infrastructure and enhanced pedagogy to the meet the aspirations of youth, turning into preferred choices for skill training.” Ramesh Pokhriyal, Minister of HRD, said that India is set to become the hub of skill development in the world in the next few years. “In the coming 25 years, India will be the only country that will remain young, allowing us more opportunities for economic development. Apprenticeship is one of the most sustainable modules through which our youth can learn and earn at the same time. The recent reforms towards initiating apprenticeships are commendable.” RK Singh, MoS, Ministry of Power and Ministry of New and Renewable Energy, Ministry of Skill Development and Entrepreneurship, said that the day marked an important occasion to pause and reflect on the efforts towards promoting skill training in the country. He said, “It is important to celebrate milestones. This is an opportunity for us to pause and reflect on the need gaps and the roadmap ahead for Skill India. In a fast-moving economy riddled with disruptions, many have questioned whether India will be able to address the needs of a vast population by providing them skills that will make them employable in the future. The answer is definitely yes and can be seen in the eyes of our youth who aspire to live a better life.”
Source: The Daily Pioneer
The country’s first Center of Excellence will be opened in Almora for the preparation and research of natural fiber by the plants found in Himalayan regions. For this, the Ministry of Textiles has released a sum of Rs. 20 crores. This center will be set up through the Northern India Textile Research Association (NITRA). The state government has transferred one acre land for the center to the Textile Ministry. For the preparation of research and filament on Himalayan Natal (Kandali), Bhang, Bhimal, Rambans, Bhabar grass in Uttarakhand, Center of Excellence based on Natural Fiber will be established in Almora. It will be the first center of the country to promote Himalayan Natural Fiber. Ministry of Textiles has released a sum of Rs 20 crore as the first installment for the construction of the center. In the last few days, Textile Minister Smriti Irani held a meeting with the representatives of tourism, agriculture, culture and state government. She has asked this center to be developed in terms of tourism and culture. So that tourists coming from outside can be attracted to the products made from natural fiber. With the promotion of natural fiber, resources for livelihood will be available to people in mountainous areas. Demand for fabrics made from natural fiber in the international marketIn Uttarakhand there is a lot of demand in the international market of clothes fabrics made from Kandali, Bhang, Bhimbal, Rambans and Bhabar grass. In Uttarakhand, more than 95 percent of the vegetation have fiber. In Uttar Pradesh, Uttarakhand Bamboo and Fiber Development Council has professionally identified some species.
Source: Uttarakhand News
“India's bilateral relations with Iran, and the US stand on their own merit and are not influenced by relations between other countries,”Puri said. Amid rising global trade tensions, India has reiterated that its bilateral relations with Iran and the United States are not influenced by relations between other countries. “India's bilateral relations with Iran, and the United States stand on their own merit and are not influenced by relations between other countries,” Minister of State in the Ministry of Commerce and Industry, Hardeep Singh Puri said in Parliament on Wednesday. In a written reply to the Lok Sabha, he said that the government “consistently monitors all developments with a bearing on its national interest and takes necessary measures to safeguard and protect the same”. US Secretary of State Mike Pompeo branded Iran as a “state sponsor of terror” during his Delhi visit late last month. The US imposed additional tariff of 25% and 10% on steel and aluminum respectively under section 232 of Trade Expansion Act, 1962 in March last year on a global basis. While India’s steel export in the affected lines to US declined by 35% during the FY 2018- 19 compared to FY 2017-18, aluminum export in the affected lines have increased by 14% during the same period. “India has been engaged with the US on this issue, as part of the ongoing bilateral trade dialogue. The US did not accede to India’s request for withdrawal of these duties,” Puri said. In response, India imposed retaliatory tariffs on 28 products originating or exported from the US with effect from June 16, which have already been disputed by Washington at the World Trade Organization. India’s trade surplus with the US reduced to $16.8 billion in 2018-19 from $21.2 billion in FY18 on higher purchases of oil and gas and civilian aircraft.
Source: Economic Times
The reports provides an expert analysis of the current state of the relationship, including recent negotiations and recommendations for the path forward in the short, medium, and long-term. India and the US need to "prioritise efforts" to manage current trade tensions and initiate cooperative projects in areas like intellectual property rights and digital trade, according to a report by a former trade official from the Trump administration. The report, 'Trade at a Crossroads: A Vision for the US-India Trade Relationship', said it was clear that the first priorities for the future should be to manage current challenges and address those that were likely immediately ahead. Authored by Mark Linscott, former assistant, US Trade Representative for South and Central Asian Affairs, the report is produced jointly by the Atlantic Council and the US India Strategic and Partnership Forum (USISPF). It provides an expert analysis of the current state of the relationship, including recent negotiations and recommendations for the path forward in the short, medium, and longterm. There is no easy way to sugarcoat the present state of the relationship -- it is one in which the only common denominator is a fundamental misunderstanding of priority objectives on the other side, which has led to misalignment of expectations in recent negotiations, the report said. A strong commitment to improve the bilateral trade relationship and build a sound foundation for future successes can start now it said adding that the current state of play suggests that the two countries were now at a crossroads, with one direction leading to an initial bilateral agreement, and the other to outright conflict. "While conflict in which the two sides engage in retaliatory measures, such as GSP suspension and tit-for-tat tariff increases, can create new leverage and focus minds to eventually achieve an agreement, it can also significantly set back the relationship at a moment when there is an urgent need to cultivate trust and achieve some confidence building outcomes," said the report. The publication of the report on Tuesday comes days after a US delegation of trade officials returned from New Delhi after holding first talks with their Indian counterparts on resolving their trade differences. The talks have started at the direction of Prime Minister Narendra Modi and President Donald Trump who met in Japan last month on sidelines of the G-20 Summit. The report counsels that India and the United States redouble their efforts to go down a path of constructive engagement that can lead, in the short term, to a first ever bilateral trade agreement. In parallel, it said, the two can explore new areas for bilateral engagement, with the objectives of continually building new confidence, gradually aligning their visions for opportunities to open their markets to each other, and growing trade and investment at an accelerated pace. The report recommends that the two governments should manage current conflicts and reach an initial agreement; review and improve institutional underpinnings; recommit to the TPF and pursue institutional reform; replicate recent cooperative success; explore opportunities for significant market opening agreements; and chart a map toward an FTA. Observing that the United States–India trade relationship is rapidly approaching a point of crisis, the report says that institutional arrangements are unable to address evolving and growing trade irritants, while protectionist instincts in both governments are exacerbating tensions. "Recent failures to reach even a small agreement, and subsequent tit-for-tat escalations, now place the relationship at a tipping point," it said. Noting that the United States-India relationship will be one of the most consequential of the 21st century, the report said commerce would play a vital role in determining whether it is constructive or adversarial. Issues, including standards and conformity assessment testing, digital trade, healthcare, and agricultural trade, present areas of emerging conflict or opportunities for cooperation, the report said. "While the history of bilateral trade negotiations has often been contentious, it also includes examples of constructive cooperation. These examples should serve as inspiration in addressing today's challenges," it said. The United States was the second-largest trading partner for India in goods in 2018, and the single largest export destination for Indian exporters. Bilateral trade in goods and services grew at an average annual rate of 7.59 per cent from 2008-2018, double in value from USD 68.4 billion to USD 142.1 billion.
Source: Economic Times
In response to growing protectionism and questioning of the special dispensation for developing countries at the World Trade Organisation by rich nations, India, and some others such as Cuba, South Africa, Bolivia and Zimbabwe, have submitted a concept paper pointing out necessary areas of reform for strengthening of the multilateral organisation and the need to continue with special and differential treatment (S&D) for all developing members. “In recent months, some members have suggested a broad range of reforms at the WTO including a slate of new rules, even though existing mandates from the Doha Development Agenda (DDA) remain unaddressed. WTO reform does not mean accepting either inherited inequities or new proposals that would worsen imbalances. Reforms must be premised on the principles of inclusivity and development and respond to the underlying causes of the current backlash against trade and the difficulties that developing members continue to face vis-à-vis their industrialisation challenges,” the paper said. The concept paper, co-sponsored by India, South Africa, Cuba, Bolivia, Zimbabwe, Ecuador, Tunisia, Uganda and Malawi, has been circulated to the WTO General Council and will be later taken up for discussion while brainstorming on necessary WTO reforms by all members. The immediate priorities for reform at the WTO must include resolving the crisis in the Appellate Body and addressing the unilateral actions taken by some members, the paper said. “As per Articles 17.1 and 17.2 of the Dispute Settlement Undertaking, all WTO members have a collective duty to ensure the maintenance of a standing Appellate Body comprising seven members. It would be disingenuous to use the pretext of the Appellate Body’s alleged digression from the clear mandate of the DSU to justify wilful non-compliance with the same by the membership,” the paper said.
Judges for Appellate Body
With the US stalling the appointment of judges at the Appellate Body, it will become non-functional in December when the minimum number of judges required to run the body will not be met because of judges retiring. “Attempts at addressing the crisis in the dispute settlement system must preserve its essential features namely an independent, two-tier dispute settlement system, automaticity in the launch of proceedings and decision-making by the Dispute Settlement Body by negative consensus” the paper said. In response to arguments by some WTO members that many developing countries such as China, India and South Africa do not need special treatment any more, the paper said that available data indicated that the gap in the standards of living between developing and developed countries has not narrowed to any significant extent since the establishment of WTO. “This necessitates the preservation and strengthening of the S&D provisions in both current and future WTO agreements, with priority to outstanding LDC issues,” it said. Reform must reaffirm the principle of S&D, which is a treaty-embedded, non-negotiable right for all developing countries in the WTO, it added.
Source: The Hindu Business Line
India witnessed a double-digit growth in apparel export to the US and can grow further with more focus on blended and value-added products, the Indian Texpreneurs Federation (ITF) recently said. Apparel exports to the US were worth $1.764 billion in January-May last year and saw a 10.83 per cent growth to reach $1,955 billion in the same period this year, it said. In a tweet marked to textiles minister Smriti Irani, ITF said an eco-system needs to be created to nurture manufacturing of high value-added apparel as 43 per cent of the top 30 export items in this sector are fetching a revenue of below $6 per piece. Few Indian players are demonstrating their capability in value-added product exports by earning more than $9 per apparel. An alternative is to motivate small and medium enterprises to set up large scale units to compete in low-value apparel, it said. Exporting clusters like the one in Tiruppur should focus more on the US market to grow further, it said. A few ITF member companies are trying to brand their products as sustainable fashion items to command better preference in global markets, ITF said. Whatever space China is vacating in the home textile space will be shared by several countries, but India continues to maintain the second-largest supplier status in this sub-sector, according to ITF.
Source: Fibre2Fashion
Indian CFOs are quite bullish about the economic growth prospects this year. According to an American Express Global Survey, 80 per cent of Indian CFOs surveyed expect a substantial or modest economic expansion in the year ahead, substantially higher than their global peers at 71 per cent. Also, 90 per cent of Indian CFOs believe that improving cash and working capital management will be more important this year as compared to the last. The 2019 Global Survey covered 901 senior finance executives from companies around the world with annual revenues of $500 million or more. In all, 180 CFOs and other senior finance executives from Asia and 30 from companies in India participated in the study. “Indian firms are gearing up to efficiently manage their spending and investment this year with a keen eye on the future,” Manoj Adlakha, CEO, American Express India, said. “While they balance spending to drive top-line growth with profitability, they are pressing ahead with plans to take advantage of demographic and economic changes to stay relevant and competitive in the next 5-10 years,” he said. Economic expansion expectations remain highest in the Asia/Australia region (79 per cent, down from 94 per cent last year) and lowest in Latin America (43 per cent, down from 52 per cent last year).
On a growth path
Indian companies continue to grow; 87 per cent of companies surveyed in India reported higher profits or much higher revenue in the last 12 months, as compared to 43 per cent last year. The number is notably higher than the average worldwide (65 per cent) and in Asia (63 per cent) for this year. Indian CFOs continue having a positive outlook towards global trade policy, with 63 per cent expecting global trade policy to strengthen their company’s growth prospects, according to the Survey.
Spending outlook
Senior finance executives remain optimistic about the economy, the outlook for their companies and their investments for the future, according to the 2019 Global Business & Spending Outlook, a survey released by American Express and Institutional Investor Thought Leadership studio. Over 83 per cent CFOs are looking at moderate to aggressive increase in spending and investment this year to support topline growth. As many as 33 per cent expect their company’s spending and investment worldwide to change by 10 per cent or more this year.
Source: The Hindu Business Line
New policy to offer exemption on SGST, electricity duty after state eyes top-3 spot in ease of doing business. Sensing competition from peer states to woo new investments, the Odisha government is mulling to recast its Industrial Policy Resolution (IPR) last revised in 2015. Though IPR 2015 was loaded with fiscal and non-fiscal incentives, other states with more sops were better positioned to lure the new investors, especially in non-mineral sectors. “We don't want to lose edge in drawing investments. The changing dynamics, investor perception and rising competition from other states cannot be wished away. Hence, we are going for a revamp of the existing IPR to accommodate new provisions. The new policy statement is likely to be unveiled in 2020,” said an official source. Aiming to be positioned among the top three states in 'Ease of Doing Business', Odisha shed four places to finish at the 11th slot at the latest rankings released in 2018. Though Odisha improved its score in compliance with Business Reforms Action Plan and earned the tag of 'leader', it lost ground to competing states in investor perception. To burnish its image, Odisha plans a revised IPR that will offer investors sops like SGST (State Goods & Services Tax) holiday and electricity duty exemption for five years. It is also expected to sweeten the subsidy on fresh capital investments by existing and prospective investors. The new policy statement is set to be valid for at least five years from the date of its promulgation. The proposed industrial policy envisages industrial parks for each of the focus sectors and creation of industrial corridors to set up small & medium enterprises across the state. For extension of credit at concessional rates to the eligible MSMEs (micro, small & medium enterprises), a suitable interest subvention scheme shall be introduced by the government. The state government has been in a fix over extending incentives announced under VAT (Value Added Tax) after the roll out of Goods & Services Tax (GST). Since revenues slid after GST implementation, the finance department was not keen to dangle the VAT related incentives in the post GST era. Investors in emerging sectors such as electronics manufacturing & information technology, textiles & apparel, petroleum, chemicals & plastics, ancillary & downstream industries and food processing were looking for customized sops to set up their facilities in the state. Keeping to the requirement of the investors, the state government has been unveiling sector specific policies. The industries department has rolled out several investor friendly apps and to top it all a definitive portal- Government of Odisha Single Window Investor Facilitation & Tracking- GOSWIFT which tracks the entire life cycle of an investment- beginning from proposal to implementation and beyond. Over the past four years, the state has intensified its outreach efforts, staging roadshows in domestic and overseas locations. Make in Odisha, a biennial investor conclave was first held in 2016 with the state attracting Rs 2.03 trillion worth of investment intents. The second edition organised in November 2018 was a grander showpiece event where investors across sectors pledged Rs 4.19 trillion for Odisha.
Source: Business Standard
The rupee depreciated by 11 paise to close at 68.82 against the U.S. dollar on Wednesday due to foreign fund outflows and rising crude oil prices. Forex traders said cautious trading in the domestic equity markets also weighed on the local unit. However, weakening of the greenback vis-a-vis other currencies overseas supported the rupee to some extent. At the interbank foreign exchange (forex) market, the domestic currency opened at 68.69 per dollar, but lost ground during the day and finally settled at 68.82, down 11 paise over its previous close. The rupee had settled at 68.71 against the U.S. dollar on Tuesday. “The rupee slipped along with other emerging-market currencies amid better than expected U.S. economic data. The foreign fund outflows from the domestic equity market also weighed on the rupee. For the month, they have sold $770 million in the equity market,” said V.K. Sharma, Head PCG & Capital Markets Strategy, HDFC Securities. Brent crude futures, the global oil benchmark, climbed 1.07% to $65.04 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08% to 97.31. Market benchmark BSE Sensex extended its gains for the third consecutive session. The 30-share index settled 84.60 points or 0.22% higher at 39,215.64. The broader NSE Nifty ended 24.90 points or 0.21% up at 11,687.50. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out ₹16.97 crore Wednesday, provisional data showed. Meanwhile, the 10-year government bond yield was at 6.35% on Wednesday. “Indian Sovereign bonds fell after a five-day rally after the Jalan Committee recommended transfer of reserve with RBI in tranches to the government,” Mr. Sharma said. The Bimal Jalan committee, constituted to assess the optimum size of capital reserves that the RBI should hold, finalised its report on Wednesday. Regarding the quantum of surplus transfer from the RBI to the government, sources said, it cannot be disclosed at the moment but transfer would be periodic and would spread over three to five years. Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 68.5672 and for rupee/euro at 77.1838. The reference rate for rupee/British pound was fixed at 85.7657 and for rupee/100 Japanese yen at 63.45.
Source: The Business Line
The first store will be in South Delhi at Ambience Mall, the second one will be at DLF Place Saket, the third store will be at DLF CyberHub in Gurugram Japanese global apparel retailer UNIQLO Wednesday announced its plans to make a foray into the Indian market and will open three stores in the first year in Delhi-NCR. Given the size and fast growth of the Indian market, the launch will involve three separate stores. The first of the three UNIQLO stores will open in October in New Delhi, the company said in a statement. "We are committed to the Indian market and are very excited to be launching our first three stores in Delhi, a region that embraces diversity and culture, from art and design to craftsmanship and fashion," UNIQLO Founder and Chairman, President & CEO, Fast Retailing Tadashi Yanai said. The first store will be in South Delhi at Ambience Mall, Vasant Kunj spread over 35,000 square feet. The second one will be at DLF Place Saket, also in South Delhi while the third store will be located at DLF CyberHub in Gurugram, UNIQLO said. The opening of the three stores represents a significant step in in the company's global strategy, Yanai said. "We look forward to offering our high-quality, affordable LifeWear apparel to the people of India," he added. The company's announcement to start operations in India comes after the country allowed 100 per cent FDI in single brand retail, although foreign retailers still need to source 30 per cent of their products from local suppliers, preferably medium and small enterprises. In 2006, the government had allowed 51 per cent FDI in single brand retail. In January 2018, 100 per cent FDI was permitted for foreign players in single brand retail trade to set up own shops in India without government approval.
Source: Business Standard
More than 300 women who depend on the profession face the prospect of running out of business. Artisans from the Toda tribe in the Nilgiris fear that duplication of their traditional handwoven textile designs may soon edge them out of the market, leading to the more than 300 women who depend on the sale of traditional Toda-embroidered clothing items being out of business in the next few years. According to artisans involved in embroidering the signature Toda designs on shawls, quilts, bags, jackets, bags, mufflers and even keychains and bookmarks, the demand for hand-embroidered traditional Toda goods has been on the decline over the last few years. “In shops run by members of the community, including ones being operated with the help of the forest department near major tourist attractions, we are lucky if we sell 4-5 pieces of handwoven textiles each day,” said one of the women artisans from the community. “While making a shawl by hand could take anywhere up to a week for a Toda woman, the cheaper, mass manufactured Toda-embroidery duplicates can be produced by a team of non-tribal seamstresses in huge quantities,” said the woman. As they are handwoven, the original Toda embroidered items are much more expensive than the duplicates, with a single shawl being sold for around Rs. 2.000. “However, a saree, with the Toda design being duplicated is sold for just Rs. 1,500,” said Northey Kuttan, a member of the community and President of the Nilgiri Primitive Tribal People’s Federation (NPTPF). Mr. Kuttan said that as the Toda-embroidered textiles are protected by the Geographical Indication (GI) tag, the replication of the designs by “non-tribals” was illegal. “Moreover, as the community does not have the resources to market their products as effectively as private players, we stand at an even greater disadvantage,” said Mr. Kuttan, who called on the government to clampdown on the duplication of Toda designs.
Assistance sought
“We have asked the government to assist us with marketing our products online, and to also help us with mandating that Toda-crafted textiles and goods be inserted with barcodes, which can be used to verify their authenticity when required,” said Mr. Kuttan. M. Alwas, Secretary of the Nilgiris Adivasi Welfare Association (NAWA), said that the handcrafted textiles were a part of the Todas’ tradition, with deep cultural roots, and that their duplication was causing much distress among members of the community. “As a result, the members of the community, with the help of organizations such as ours, have complained to the collector, who in turn has directed the police to investigate the duplication of Toda embroidered goods,” said Mr. Alwas, who added that the private firms profiting from producing duplicates are liable to pay financial compensation to the community if found guilty.
Source: The Hindu
The textile industry is responding to the challenges posed by shrinking resources in a variety of innovative ways, says Saimi Sattar. Garments that are upcycled, clothes that answer to the description of circular fashion or those which do not waste water — how often do we see labels flaunting these ideas? Sustainable is a term often bandied about by different industries. And often times we, as consumers, wonder if it is nothing more than a marketing gimmick. However, the textile industry is stepping up its act from start to finish to ensure that sustainability and circular fashion extend beyond being mere words and become constructive actions. Of course, there is a context and a reason why this particular industry needs to step up and get its act together. After agriculture, the textile industry is a front runner in the consumption of water. According to the Water Footprint Network, in conjunction with the United Nations Educational, Scientific, and Cultural Organisation (UNESCO) IHE Institute for Water Education, creating a single pair of jeans requires about 2,866 gallons of water! The use of chemical dyes pollutes the environment while waste products generated during pre- and post-production as well as frequently discarded garments choke up landfills. At Textile Fairs India 2019 (TFI), which was being held at Pragati Maidan, there were companies and designers showcasing their particular effort on making it a more sustainable effort.
WARP AND WEFT
The world seems to be practically submerged in a sea of plastic. But then, so are the seas. In view of that, some of the yarn manufacturing companies have resorted to the best possible solution — mopping up PET bottles and then fashioning it into yarn. DGM exports, Sulochna Cotton Spinning Mills K S I Rajesh, says, “We are converting 10,980 million pet bottles every year into fibre. The plastic is blended with Better Cotton Initiative (BCI) or fair trade cotton, which is being grown by farmers trained by several NGOs to conserve water and use organic fertilisers. So we are contributing in two ways, by using plastics and also by using BCI.” But not just this, the Tirupur-based company is also actively working on water conservation. A process called pigmentation uses zero water. It is keenly working on environmental factors where the air emissions, chemical discharge and water wastage are being minimised. “Hundred per cent of our energy needs are fulfilled by renewable energy power as we have our own solar and wind projects,” he points out. However, this is not the lone player in the game. Lotusville, which too, is based out of Tamil Nadu, is manufacturing yarn with 80 per cent cotton and 20 per cent polyester. “Even the cotton that we use is pre-production waste from the cutting section of the garment factories while the 20 per cent of polyester is made from pet bottle waste. Moreover, since there is no dyeing involved as the fibre takes the colour of the original cotton, water is saved as well,” says A S Pravin, managing director. While using different waste products at different times does alter the colour of the yarn, this is not visible to the naked eye and can be observed only under a colour test. The company supplies yarn to home textile manufacturers who manufacture towels, gloves and more for markets like Russia and other parts of Europe. Pravin also says that initially when the company started out with the idea of sustainability, there were not too many takers. So they marketed it as a more economical option to virgin cotton. “When we started recycling three years ago, most of the people were buying it as a cheaper alternative. But the enquiries from the past six months have been specifically related to sustainability. We did about 60 tonnes in two-and-a-half years which rose by another 40 tonnes in the last six months when the focus changed to sustainability,” he says. The idea took birth in 2015 as the company wanted to innovate as it was not possible to compete in the regular market. “A lot of waste is generated in Tirupur as there is a well-developed cotton market which finds it hard to dispose the waste fibre. It is this, that we utilise,” he says. However, wouldn’t the use of plastic affect the breathability as well as lead the fabric to heat up which could could prove disastrous in a tropical country like India? Rajesh points out, “We blend it with natural fibre and cellulose and can alter the combination to make apparel depending on the requirements of the seasons and countries.”
DESIGNERS’ TAKE
While the yarn and textile manufacturers do their bit, it is time for the designers to step up their act too. Sonia Tommy Antony, who has designed clothes for films like Chak de! India and Dhoom 3, has a different take on circular fashion. “Since we want variety in clothes, we are discarding them often. This in turn chokes the landfills. People are trying to upcycle but I am trying to reduce the consumption rate by making garments that are reversible. These are completely finished inside out and can be worn both ways,” she says. One goes through the rack to find out that there are lace dresses which on being reversed carry a print, or one with two prints on two sides or even different colours. “It gives you the option of two different outfits without cluttering your wardrobe. It is actually the lining of the garment which is made of a different fabric and gives it a new look,” says Sonia. Moving away from the delicate and feminine clothes there are the regular, everyday, de rigueur ones, namely jeans. This particular industry even among textiles bears the cross for using a large quantity of water. But Padma Raj Keshri is just trying to reverse that damage in his own way. He says, “Annually, the world consumes 6.8 billion units of denim jeans and during the manufacture about 20 per cent of the fabric is wasted. I decided to use this and started sourcing it from factories.” He found a vendor who was ready to attach 50 metres of fabric which he fashioned into clothes. “Even then there was four per cent waste so I started recycling denim fibres,” he adds. The genesis of the idea could be traced to the time when he was shifting homes and realised that he had 30-35 pairs of jeans, which were worn out from critical areas and couldn’t be used. “I created a dress for a friend and he loved it. I realised that there was a market for this,” says he. However, while manufacturing apparel for the market he does not prefer used jeans as hygiene is an issue. He makes jackets, jeans, jumpsuits and is planning to diversify into Indian wear as well. A jacket made with different pieces of denim fabric and with a lot of detailing is one of his fastest moving items. “At a big brand it would not retail for less than `25, 000 while I am selling it for half the price,” says the Ahmedabad-based designer. Next up is Aishwarya Iyengar, who works with the the philosophy of zero waste and sustainability. Each of her garments has trims and embroidery which she has sourced from old saris. “Unwearable saris have been fashioned into bags. The swatches that we receive on a daily basis have been used in shoes as well as for detailing in the kurtas as are the waste buttons,” says Aishwarya. She sources these from tailors, boutiques and factories. Pushpa, on the other hand, believes in the basic idea of slow fashion. “I am a designer by day and embroidery artist by night. Whenever there is hand embroidery on anything, it immediately becomes circular. On the other hand, anything which is replicated more is discarded more often as happens with retail garments. If we buy clothes from a designer, we preserve it because there is hand-feel or hand embroidery which makes it precious,” she says.
PACKAGING WONDERS
How often have you bought a sustainable product which came packaged in reams and reams of plastic? Abhishek Jain, director, Vishal Print-N-Plast, says, “We use virgin plastic granules to make pouches, and boxes while the carrier bags are made with pure non-woven fabric. These are packaging solutions for online retailers as well as the ones who have brick and mortar stores. These can be easily recycled to make plastic chairs which is not possible in plastic bags.” Clearly, the end to end solutions are coming from within the industry and how.
Source: The Daily Pioneer
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1192.28 |
USD/Ton |
0% |
7/17/2019 |
|
VSF |
1733.17 |
USD/Ton |
0% |
7/17/2019 |
|
ASF |
2263.15 |
USD/Ton |
0% |
7/17/2019 |
|
Polyester POY |
1187.92 |
USD/Ton |
0.25% |
7/17/2019 |
|
Nylon FDY |
2449.99 |
USD/Ton |
0% |
7/17/2019 |
|
40D Spandex |
4303.84 |
USD/Ton |
0% |
7/17/2019 |
|
Nylon POY |
1330.41 |
USD/Ton |
0% |
7/17/2019 |
|
Acrylic Top 3D |
2689.90 |
USD/Ton |
0% |
7/17/2019 |
|
Polyester FDY |
5496.12 |
USD/Ton |
0% |
7/17/2019 |
|
Nylon DTY |
1388.57 |
USD/Ton |
0% |
7/17/2019 |
|
Viscose Long Filament |
2326.40 |
USD/Ton |
0% |
7/17/2019 |
|
Polyester DTY |
2413.64 |
USD/Ton |
0% |
7/17/2019 |
|
30S Spun Rayon Yarn |
2413.64 |
USD/Ton |
-0.30% |
7/17/2019 |
|
32S Polyester Yarn |
1882.93 |
USD/Ton |
-0.77% |
7/17/2019 |
|
45S T/C Yarn |
2617.20 |
USD/Ton |
0% |
7/17/2019 |
|
40S Rayon Yarn |
2079.22 |
USD/Ton |
0% |
7/17/2019 |
|
T/R Yarn 65/35 32S |
2399.10 |
USD/Ton |
0% |
7/17/2019 |
|
45S Polyester Yarn |
2704.44 |
USD/Ton |
0% |
7/17/2019 |
|
T/C Yarn 65/35 32S |
2260.97 |
USD/Ton |
0% |
7/17/2019 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
7/17/2019 |
|
32S Twill Fabric |
0.76 |
USD/Meter |
0% |
7/17/2019 |
|
40S Combed Poplin |
1.03 |
USD/Meter |
0% |
7/17/2019 |
|
30S Rayon Fabric |
0.62 |
USD/Meter |
0% |
7/17/2019 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
7/17/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14540 USD dtd. 17/07/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Advanced functional fabrics workshop, held jointly with AFFOA and industrial partner New Balance, develops concepts for biodegradable footwear, active textiles. If you knew that hundreds of millions of running shoes are disposed of in landfills each year, would you prefer a high-performance athletic shoe that is biodegradable? Would being able to monitor your fitness in real time and help you avoid injury while you are running appeal to you? If so, look no further than the collaboration between MIT and the Fashion Institute of Technology (FIT). For the second consecutive year, students from each institution teamed up for two weeks in late June to create product concepts exploring the use of advanced fibers and technology. The workshops were held collaboratively with Advanced Functional Fabrics of America (AFFOA), a Cambridge, Massachusetts-based national nonprofit whose goal is to enable a manufacturing-based transformation of traditional fibers, yarns, and textiles into highly sophisticated, integrated, and networked devices and systems. “Humans have made use of natural fibers for millennia. They are essential as tools, clothing and shelter,” says Gregory C. Rutledge, lead principal investigator for MIT in AFFOA and the Lammot du Pont Professor in Chemical Engineering. “Today, new fiber-based solutions can have a significant and timely impact on the challenges facing our world.” The students had the opportunity this year to respond to a project challenge posed by footwear and apparel manufacturer New Balance, a member of the AFFOA network. Students spent their first week in Cambridge learning new technologies at MIT and the second at FIT, a college of the State University of New York, in New York City working on projects and prototypes. On the last day of the workshop, the teams presented their final projects at the headquarters of Lafayette 148 at the Brooklyn Navy Yard, with New Balance Creative Manager of Computational Design Onur Yuce Gun in attendance. Team Natural Futurism presented a concept to develop a biodegradable lifestyle shoe using natural material alternatives, including bacterial cellulose and mycelium, and advanced fiber concepts to avoid use of chemical dyes. The result was a shoe that is both sustainable and aesthetic. Team members included: Giulia de Garay (FIT, Textile Development and Marketing), Rebecca Grekin ’19 (Chemical Engineering), rising senior Kedi Hu (Chemical Engineering/Architecture), Nga Yi "Amy" Lam (FIT, Textile Development and Marketing), Daniella Koller (FIT, Fashion Design), and Stephanie Stickle (FIT, Textile Surface Design). Team CoMIT to Safety Before ProFIT explored the various ways that runners get hurt, sometimes from acute injuries but more often from overuse. Their solution was to incorporate intuitive textiles, as well as tech elements such as a silent alarm and LED display, into athletic clothing and shoes for entry-level, competitive, and expert runners. The goal is to help runners at all levels to eliminate distraction, know their physical limits, and be able to call for help. Team members included Rachel Cheang (FIT, Fashion Design/Knitwear), Jonathan Mateer (FIT, Accessories Design), Caroline Liu ’19 (Materials Science and Engineering), and Xin Wen ’19 (Electrical Engineering and Computer Science). "It is critical for design students to work in a team environment engaging in the latest technologies. This interaction will support the invention of products that will define our future," comments Joanne Arbuckle, deputy to the president for industry partnerships and collaborative programs at FIT. The specific content of this workshop was co-designed by MIT postdocs Katia Zolotovsky of the Department of Biological Engineering and Mehmet Kanik of the Research Laboratory of Electronics, with assistant professor of fashion design Andy Liu from FIT, to teach the fundamentals of fiber fabrication, 3-D printing with light, sensing, and biosensing. Participating MIT faculty included Yoel Fink, who is CEO of AFFOA and professor of materials science and electrical engineering; Polina Anikeeva, who is associate professor in the departments of Materials Science and Engineering and Brain and Cognitive Sciences; and Nicholas Xuanlai Fang, professor of mechanical engineering. Participating FIT faculty were Preeti Arya, assistant professor, Textile Development and Marketing; Patrice George, associate professor, Textile Development and Marketing; Suzanne Goetz, associate professor, Textile Surface Design; Tom Scott, Fashion Design; David Ulan, adjunct assistant professor, Accessories Design; and Gregg Woodcock, adjunct instructor, Accessories Design. To facilitate the intersection of design and engineering for products made of advanced functional fibers, yarns, and textiles, a brand-new workforce must be created and inspired by future opportunities. “The purpose of the program is to bring together undergraduate students from different backgrounds, and provide them with a cross-disciplinary, project-oriented experience that gets them thinking about what can be done with these new materials,” Rutledge adds. The goal of MIT, FIT, AFFOA, and industrial partner New Balance is to accelerate innovation in high-tech, U.S.-based manufacturing involving fibers and textiles, and potentially to create a whole new industry based on breakthroughs in fiber technology and manufacturing. AFFOA, a Manufacturing Innovation Institute founded in 2016, is a public-private partnership between industry, academia, and both state and federal governments. “Collaboration and teamwork are DNA-level attributes of the New Balance workplace,” says Chris Wawrousek, senior creative design lead in the NB Innovation Studio. “We were very excited to participate in the program from a multitude of perspectives. The program allowed us to see some of the emerging research in the field of technical textiles. In some cases, these technologies are still very nascent, but give us a window into future developments.” “The diverse pairing and short time period also remind us of the energy captured in an academic crash course, and just how much teams can do in a condensed period of time,” Wawrousek adds. “Finally, it’s a great chance to connect with this future generation of designers and engineers, hopefully giving them an exciting window into the work of our brand.” By building upon their different points of view from design and science, the teams demonstrated what is possible when creative individuals from each area act and think as one. “When designers and engineers come together and open their minds to creating new technologies that ultimately will impact the world, we can imagine exciting new multi-material fibers that open up a new spectrum of applications in various markets, from clothing to medical and beyond,” says Yuly Fuentes, MIT Materials Research Laboratory project manager for fiber technologies.
Source: MIT News
While the US trade war with China has cooled with a recent truce and renewed talks, the world's second-largest economy has slowed amid President Donald Trump's tariffs. The International Monetary Fund (IMF) said more work is needed to further reduce global trade imbalances amid increasing tensions, while issuing a fresh warning that such conflicts are weighing on the global economy. “It is imperative that all countries avoid policies that distort trade,” the IMF said in its annual External Sector Report released Wednesday in Washington. “Against a backdrop of escalating trade tensions, greater urgency is needed in tackling persistent excess imbalances.” The report comes as the Washington-based fund confronts a surge in protectionism around the world that’s seen dragging on global growth, with output slowing in major economies from China to Europe and Mexico. IMF leadership also is in flux with Managing Director Christine Lagarde set to succeed Mario Draghi as president of the European Central Bank. While the US trade war with China has cooled with a recent truce and renewed talks, the world’s second-largest economy has slowed amid President Donald Trump’s tariffs. China’s government said this week that the economy eased to the weakest pace since quarterly data began in 1992, highlighting effects of the ongoing trade dispute with the US. “With prolonged trade uncertainty, it’s weighing on business sentiment everywhere in the world, which then has implications for global demand,” IMF Chief Economist Gita Gopinath said at a press conference Wednesday. “We welcome the trade truce between the US and China that came toward the end of June at the G-20 meetings, and we would hope that the world would continue to work cooperatively to not only not trigger these trade tensions but also to address the issues with the multilateral trading system.”
Source: Business Standard
Italian firm which owns fashion brands Pull&Bear, Massimo Dutti and Zara has promised to overhaul its sourcing strategies. Inditex, one of the world's largest fashion companies, has promised that by 2025 100 per cent of the cotton, linen, and polyester used by all its brands will be organic, sustainable or recycled. The move, which is almost unprecedented amongst mainstream fashion retailers, means 90 per cent of the materials purchased from the group will come from a sustainable source, CEO Pablo Isla told shareholders at an Annual General Meeting yesterday. By 2023, all the viscose it uses will also be certified as sustainable. Isla added that by the same date 80 per cent of the power used in the Group's activities will come from renewable sources. Zara accounts for around 70 per cent of sales across the Inditex Group. Although the fashion brand has released a host of sustainable collections in recent years, today's announcement is by far its most ambitious green commitment to date. "Sustainability is a never-ending task in which everyone here at Inditex is involved and in which we are successfully engaging all of our suppliers," said Isla. Fashion is one of the most polluting industries in the world, responsible for an outsize environmental impact in terms of greenhouse gas emissions, water use, and chemical pollution. The UN has been urging fashion companies to do more to tackle their impact, but so far any reforms have been limited. Isla signalled his desire to make sustainable clothing a core component of Inditex's offer, indicating that garments sold under its 'Join Life' label which aims to emphasise high environmental standards, will more than double this year to account for more than a quarter of the company's production by 2020. The volume of clothing featuring the Join Life label has already increased by 85 per cent in 2018 to 136 million garments, the retailer said. In addition, by the end of next year Inditex has pledged to phase out the use of plastic bags entirely, and by 2023 eliminate all single-use plastics from customer sales. It also promised to make its stores more energy efficient and place used clothing collection bins in all outlets in order to boost the volume of textiles going to charity or being recycled. Isla said Inditex it is also working with the Massachusetts Institute of Technology to research new methods for recovering used textile fibres. In recent years the 'fast fashion' industry has been the focus of growing concern among environmentalists, who argue cheap clothes are being bought and worn only handful of times before being thrown away. Earlier this year MPs from the Environmental Audit Committee proposed a one penny levy on every clothing item sold in the UK, to help fund new textile recycling services. But the government said in response that it plans to look at rules on producer responsibility for textiles by 2025, dismissing the Committee's proposal of a complete ban on textiles going to recycling.
Source: Business Green
