Commerce and industry minister Piyush Goyal said ecommerce firms are cooperating with the government after being sent questionnaires over complaints regarding alleged violation of FDI rules. He also spoke to Kirtika Suneja in Stockholm about issues such as India’s redlines in trade talks with the US, its position on the Regional Comprehensive Economic Partnership (RCEP) treaty and plans to modernise Indian Railways. Goyal, who’s also the minister for railways, was in Stockholm to attend the Sweden-India Business Leaders Roundtable. Edited excerpts. The government has sent questionnaires to ecommerce firms and told them to comply with rules. Are they cooperating, and is there a time frame by when they have to reply?
I’ve said before also on several occasions that while we welcome ecommerce companies to India we have explained to all of them the importance of running ecommerce as an agnostic marketplace where all suppliers get equal opportunity to offer their products and buyers have a choice to buy certain or any products on that marketplace. There are well defined rules that they can’t have ownership or control over the inventory at any stage and can’t be selling their own products on that marketplace, and several other associated conditionalities were attached when we permitted ecommerce. We also have a clearly laid-out policy of not allowing multi-brand retail with foreign ownership more than 49% Ecommerce companies are expected to respect these policies and the law of the land both in letter and spirit. Certain complaints were made to the ministry that some of the ecommerce companies were engaged in selling products at highly discounted prices, leading to concerns of predatory pricing. There were some complaints about circumvention of the ecommerce policy and our multi-brand retail laws, and in all fairness, it is the government’s duty to verify, validate all such complaints, which is why I believe ecommerce companies may have been asked certain questions and the department will assess the response. So far, I haven’t received any complaint of non-cooperation and I’ve had several interactions with ecommerce companies, and at different times they have assured me that they will work within the letter and spirit of the law, comply with India’s laws and policies fully and always be available for any clarification to satisfy the Indian authorities on the law of the land.
By when do you expect issues around the US trade deal to get resolved?
Trade deals are very complex issues. It’s not a switch off-switch on and something where we work on deadlines with a pistol to our head. We have to very carefully analyse and assess long-term impact of trade negotiations and trade transactions and deals, and neither side would like to rush it. We would like to ensure a fair deal which should be good for the people of both countries. Ambassador Robert Lighthizer and I are working through the numbers, doing a lot of number crunching and internal reconciliation with other line ministries so that what we finally decide is good for the people of India and is also good for the people of the US.
What are our redlines or non-negotiables in the trade deal with the US?
Redline issues are often there and no government compromises on any redline issue. For example, one redline issue that immediately comes to my mind is any product coming into India which has got animal feed into the food chain will be a redline if it is not properly marketed as a non-vegetarian product because of the religious sensitivities around it. Or let’s say opening up access to certain agricultural products where India is self-sufficient and we want to protect our farming community. There are always certain issues where one takes extra precautions and ensures that it doesn’t affect the Indian ecosystem, but usually in a trade deal, there are no complete no-nos. One can always work around and find sustainable solutions which can be acceptable to all parties. The job of good trade negotiators is to find solutions.
What will be India’s position on RCEP, especially when there is opposition from industry?
Whether to join RCEP or not, this decision will be taken going forward. In what form we join it is more important. And in the form on which discussions are happening and issues being negotiated, that is an example how trade negotiations can be beneficial for India’s people and industry. How we have carefully looked at every aspect, individual industry’s concerns, benefit from market access from every country and what our needs are that other countries can fulfil. We have thought about all these and with sufficient safeguards which will take care of India’s industry and not harm them, we are thinking over all these issues. I will assure Indian industry not to worry about it. Whatever happens will be for the good of the people and industry, boost ‘Make in India’ and create employment opportunities, benefit consumers, help create infrastructure at low cost and open new avenues for India’s strength in services sector. We will go forward looking at all these for comprehensive and holistic benefit to India.
You have ruled out privatisation of railways.
I have ruled out privatisation. It (Indian Railways) will continue to be a government entity. I do believe that we need large investment in the railways. The target is around Rs 50 lakh crore investment in the next 12 years in upgradation of infrastructure, new lines, new dedicated freight corridors, new high-speed and semi high-speed train lines and train sets. We want to improve passenger services, speed of trains; we want to further improve our safety record. In the current year, from April 1, there has been zero fatality in Indian Railways. The signalling system is going to be completely overhauled over the next five-seven years so that it adds to safety, it adds to capacity and ensures much more seamless movement of trains in a very efficient manner. All this will need a lot of capital and money and we are looking at publicprivate partnerships. We also believe that railways need not own the entire wagons, so that Coal India can have its own wagons for moving coal, NTPC can have its own wagons for moving coal and moving train rakes. Our idea is that in partnership with Indian Railways we should be able to invite investment so that people can get better service without compromising the character of Indian Railways, which will always remain government.
The IRCTC IPO was a success. Was that only because of the attractive pricing?
Railways is an engine of growth. Also, IRCTC has done some wonderful work in the last few years, particularly on passenger bookings and serving passengers in terms of improving the quality of catering, allowing independent companies to come and cater to passengers on the train, and the services it has been giving have helped it build databases and I think those databases have a lot of value. So they have ambitious plans to look at tourism in a big way, foray into newer areas in partnership or on their own in different fields, which I think the market recognised and gave a good value.
Source: Economic Times
India is not likely to benefit from the US-China trade tensions largely owing to existing policy barriers to large-scale production, strict labour laws and difficult landacquisition process, says an EIU report. The US-China trade war has prompted some global companies to diversify their manufacturing base and moving some production out of China, but India is unlikely to be at the receiving end. India may lose out on investment to regional peers because of policy barriers to largescale production, strict labour laws, difficult land-acquisition and permitting processes and a limited number of free-trade agreements (FTAs), Sarthak Gupta, Analyst at The Economist Intelligence Unit (EIU) said. "While the recent corporate tax cut is likely to improve the attractiveness of the Indian business environment, we believe that the country is likely to remain relatively far down the list of favoured manufacturing alternatives to China," Gupta noted. As the US-China trade war continues to disrupt global commerce, South-East Asia — especially Vietnam and Thailand — has emerged as the leading destination for firms seeking to reduce their reliance on production bases in China. "Brazil, East Africa and Bangladesh may also become more attractive manufacturing destinations than India over the medium term if their respective policy environments continue to improve at a more rapid pace than India's," Gupta noted. As per the report, even though India's ranking has improved dramatically in the World Bank's Ease of Doing Business index for 2019, and infrastructure investment has increased, acquiring land for large industrial projects remains time-consuming and expensive and restrictive labour laws. Besides, obtaining permits and approvals can still be "challenging," he said. Moreover, India's stance in the ongoing negotiations for the Regional Comprehensive Economic Partnership (RCEP) trade area will be seen widely as a litmus test of the government's stance toward trade liberalisation. An RCEP without India would probably make South-East Asian countries an even more attractive destination for companies seeking to relocate some production out of China, Gupta said, adding that Vietnam, which is also a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), would be particularly well-placed. In the medium term, we believe that India will fail to realise the potential benefits from production diversification out of China, and it will lose out to its regional peers as they continue to promote more favourable trade and investment policies, he added.
Source: Economic Times
India jumped to 63rd position in the annual World Bank's Doing Business 2020 report. This is the third consecutive jump in India's ranking signalling that the reforms agenda of the Modi government is working towards improvement of the business climate. The report ranks 190 nations based on ten parameters, which includes ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency. India was ranked 100th in the World Bank's Doing Business 2018 report. In the 2019 report, India had improved its rank on six out of the 10 parameters relating to starting and doing business in a country.
Source: Economic Times
Sweden’s trade minister Anna Hallberg has said that there are hopes for an agreement on Brexit and that it should be as smooth as possible. “There cannot be a hard Brexit, a hard Brexit would not be good for anyone,” Hallberg, who is minister for foreign trade, with responsibility for Nordic affairs, said after her meeting with commerce and industry minister Piyush Goyal on Thursday here. Goyal is in Stockholm to attend the 19th Indo-Swedish Joint Commission and leading the Indian delegation comprising CII CEOs. British Prime Minister Boris Johnson on Tuesday "paused" his Brexit Bill for leaving the EU by the October 31 deadline. If the UK fails to get the new Brexit bill through Parliament in time, the default legal position remains for Britain to leave the economic bloc without a deal on October 31. “Of course, it's important for me as a minister for trade, and for all ministers for trade and the EU commissioner, that we also can continue to develop free trade agreements (FTA) with other countries and other areas of the world. It shoudn't stop,” she said, adding that EU and India can take steps further when it comes to FTAs. We share a common view there”, she said. Talks for an India-EU Bilateral Trade and Investment Agreement (BTIA) have been stuck for six years and likely to resume later this year after elections in the EU. As per an official statement, the minister “looked forward to working towards achieving a bilateral trade of $5 billion in the next 5 years as proposed by Goyal”. India-Sweden bilateral trade was $2.11 billion in 2018-19. Infrastructure sectors of railways, aviation, environment sectors such as water and health and education are the areas where Sweden could invest in India. During his visit, Goyal also met Ibrahim Baylan, Swedish Minister for Business, Industry and Innovation. “He assured the Swedish side that India is committed to a balanced outcome for the BTIA that finds a mutually acceptable way forward for both sides,” the commerce and industry ministry said in a statement.
Source: Economic Times
Pre-tax profit is up 20.7%, net up 15%; top-line growth lowest in 3 years. The July-September 2019 quarter (Q2) earnings season has started on an optimistic note for corporate India. Excluding the exceptional gains and losses, the combined net profit of 200 companies that have declared their results so far is up 15 per cent year-on-year (y-o-y), while profit before tax (PBT) has risen by a higher rate of 20.7 per cent, thanks to the cut in tax rates. In comparison, net profit was up 23.3 per cent in the year-ago period and 20.1 per cent during the April-June 2019 quarter. Similarly, PBT was up 12.2 per cent in the year-ago period and 18.6 per cent in the June ...
Source: Business Standard
The challenge before India is to sustain both economic and social development simultaneously. There are areas where India has done well. Quality of business environment has improved, investments in physical infrastructure continue in earnest, Poshan Abhiyaan has been launched. These are productivity-enhancing measures that will support growth over the next decade. Recently, the term ‘middle-income trap’ has made a comeback in the Indian context as fears that the country may find itself caught in this trap loom large. Conceptually, the ‘middle-income trap’ refers to the phenomenon where countries attain certain ‘middle-income’ levels after which growth stagnates. Can this trap be avoided? What explains rapid growth in countries and then slowdowns? Economists have explained rapid growth in low-income countries through the idea of convergence (or catch-up growth). The idea is simple—the larger the gap between the ‘leader’ and the ‘follower’, the faster the catch-up growth. However, once income levels begin to converge with that of the leader, i.e. the gap becomes smaller, growth slows down as well. This implies that there is a certain ‘advantage to backwardness’. However, renowned economist Lant Pritchett notes that a feature of modern economic history is that of divergence in the productivity levels and living standards of economies. Of course, there have been exceptions—consider Japan and other East Asian Countries as examples. These countries were successfully transitioned from low-income to high-income countries in the span of a few decades. He demonstrates that being technologically behind is not enough to sustain ‘catch-up’ growth, implying that convergence may be conditional. Pritchett leaves us with four important questions to ponder over when considering the dynamics of India’s growth story: First, what accounts for continued per-capita growth and technological progress of those countries leading the frontier? Second, what accounts for the few countries that are able to initiate and sustain catch-up growth? Third, what accounts for why some countries lose growth momentum? Fourth, what accounts for why countries remain in low growth for a long period? Pritchett’s second and third questions are relevant to India’s growth story, going forward. To answer the second question, I look at what the economic growth theory says. Broadly speaking, the literature on economic growth can be divided into two strands: exogenous growth and endogenous growth. Central to the exogenous growth theory is the idea of ‘total factor productivity’ (TFP), popularly known as the Solow Residual. According to the Solow-Swan Model, factor accumulation (capital, labour) and TFP determine output. Given the underlying assumption of diminishing marginal returns to capital, technological change is the driving force behind growth in this model. However, the model stops short of telling us what the determinants of TFP growth are, assuming it to be exogenous. In essence, this theory implies that growth is fuelled by technological progress, independent or ‘exogenous’ of economic forces. This assumption of exogenous technological change led to the development of endogenous growth theory, popularised by Nobel Prize winning economists such as Robert Lucas Jr. and Paul Romer. Endogenous growth models also see technology as the driver of long-run growth, but also hypothesise that technological progress is dependent on the decisions of economic agents, in contradiction to exogenous growth theory. So, growth in this model comes as a result of our usual factors of production (land and labour), but also knowledge accumulation. However, both of these models (along with their various extensions) have been unable to fully explain the large differences in cross-country incomes. The conditional convergence hypothesis implies that being behind on the technological frontier is not enough to kickstart catch-up growth. The Solow-Swan Model implies that differences in capital account for little of cross-country income differences. Endogenous growth models further imply that technology is non-rival, therefore differences in technology are unlikely to explain cross-country income differences. Despite different approaches in accounting for growth, the primacy of productivity is clear. This leads us to answer Pritchett’s third question—why countries lose growth momentum? Could cross-country income differences potentially be explained by how well countries are able to utilise the given level of technology? A World Bank working paper titled ‘Avoiding Middle Income Traps’ demonstrates that 85% of the slowdown in growth is explained through declining TFP growth. The hypothesis here is that the factors that generated growth at low-income levels tend to lose relevance as a country moves up income levels. This implies that the factors that support growth must evolve along with growth to take advantage of the new opportunities on offer. We need to dig deeper to understand these differences. Social infrastructure, or social capability, has been identified as a key determinant. Here, the hypothesis is that social capability defines the ability of a country to absorb and exploit new technologies. It can also be thought of as the institutions and policies that align private and social returns to activities. In essence, social capability and infrastructure can be thought of as national competitiveness à la Michael Porter. How does one go about estimating productivity? In a recent World Bank working paper, Kim & Loayza (2019) estimate the determinants of TFP through a panel of countries. Education emerges as a key driver of productivity in developing countries, supported by infrastructure, institutions, market efficiency and innovation. Missing, however, from their analysis is the role of health and nutrition. The recently released Global Competitiveness Index (GCI) by the World Economic Forum (WEF) measures competitiveness or productivity through 12 pillars: institutions, infrastructure, ICT adoption, macroeconomic stability, health, skills, product market efficiency, labour markets, financial systems, market size, business dynamism and innovation capability. Both approaches include similar indicators to measure competitiveness or productivity. The challenge before India is to sustain both economic and social development simultaneously. There are several areas where India has done well. Quality of the business environment has improved substantially, as evidenced by our performance on the Ease of Doing Business. Whilst macroeconomic stability has been achieved, the current growth slowdown has spurred reforms in key areas, such as the reduction in corporate tax rates. Investments in physical infrastructure continue in earnest, with the current regime committing `100 lakh crore worth of investments in infrastructure. Poshan Abhiyaan has been launched to improve nutritional outcomes. These are all productivity-enhancing measures that will support growth over the next decade. A key takeaway from the GCI 2019 is that a balance needs to be struck between technology integration and human capital investments. Growth-enhancing structural reforms need to be complemented with investments in human capital. In terms of education, a focus on outcomes, along with raising public investments, emerge as macro-level goals. The focus on primary health and nutrition must continue. For example, as per World Bank data, India’s current expenditure on health (as a percentage of GDP) stood at 3.7% in 2016. In comparison, upper-middle income countries spent 5.9% of GDP on current health expenditures. China spent close to 5% in 2016 as well. India must increase its social capability to enhance our ability to absorb and exploit current technologies. Only then will we witness sustained productivity growth that will drive our growth story.
Source: Financial Express
Last year, India witnessed a 23-notch jump to a record 77th position in ease of doing business index that captured the performance of 190 countries. India is expecting a third straight year of good jump in the ease of doing business index on the back of ‘good reforms’ when the World Bank releases its latest rankings for various nations on Thursday. The government is confident of substantial progress in some of the crucial indicators (where the country has huge scope to improve) like starting a business, trading across the borders, resolving insolvency, paying taxes and construction permit, sources told FE. However, as many 12 countries, including China, have also undertaken massive reforms in ease of doing business. So, India faces huge competition this year to improve its rank, according one of the sources. The government has set a target for the country to break into the group of top 50 nations in the coming years. Last year, India witnessed a 23-notch jump to a record 77th position in ease of doing business index that captured the performance of 190 countries. Each year’s rank reflects stakeholders’ perception of reforms undertaken up to the month of May of the previous year (except for the ‘paying taxes’ category where the deadline is end-December). For instance, the 2019 rank, released last year, had captured these reforms in the year through May 2018. The country’s rank under the Modi government jumped from 142nd in the World Bank’s 2015 report (which reflected reforms undertaken mostly up to May 2014) to 77 in the last report. In the past two years alone, India jumped 57 spots, the most by any country. However, India’s stellar show in ease of doing business in recent years is in a stark contrast with its slide in some other indicators, including the global competitiveness index. The country slipped 10 spots to the 68th rank in the latest global competitiveness index of the Geneva-based World Economic Forum (WEF), having witnessed lower rank for a third straight year. Last year, the country recorded improvement in the ease of doing business index in six of the 10 parametres, having witnessed a leap of 129 notches in the ever-laggard ‘construction permit’ to 52nd spot, 66 in ‘trading across borders’ to the 80th position and 19 in ‘starting a business’ to 137th rank among 190 countries. The government believes further improvement in these indicators can be expected this time. Similarly, with the relative streamlining of the goods and services tax (GST) and the insolvency and bankruptcy code (IBC), the government hopes for a marked improvement in indicators such as ‘paying taxes’ and ‘resolving insolvency’ in which its rank had worsened last year, despite expectations to the contrary. Its rank in ‘paying taxes’ last year dropped by two notches to 121st position, while in ‘resolving insolvency’, the fall was by five spots to 108th. As for insolvency, while the resolution of some of the large cases, including Bhushan Steel, has raised the chances of a better performance this year, the unusual delay in the resolution of cases like Essar Steel due to litigations may serve as a dampener. But the government’s recent step to mandate the conclusion of the insolvency resolution process within 330 days (including litigation) would help expedite the cases from now on.
Source: Financial Express
The annual World Bank's Doing Business 2020 report is expected to be released tomorrow. The World Bank will now include Kolkata and Bengaluru, besides Delhi and Mumbai, for preparing ease of doing business report to provide a holistic picture of business environment of the country, an official has said. "The country of the size of India was not properly represented by just two cities, and now with the inclusion of Kolkata and Bengaluru, Indian ranking in the World Bank's report will present a much better picture," the official said. The report ranks 190 nations based on ten parameters, which includes ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency. The official added that the exercise to include these two new cities has already been initiated and would be included in the World Bank's ranking in the years to come. The annual World Bank's Doing Business 2020 report is expected to be released tomorrow. According to the official, India's rank is expected to improve further in the report from the current 77th position. India improved its ranking on the World Bank's 'ease of doing business' report for the second straight year, jumping 23 places to the 77th position on the back of reforms related to insolvency, taxation and other areas. India was ranked 100th in the World Bank's Doing Business 2018 report. In the 2019 report, India had improved its rank on six out of the 10 parameters relating to starting and doing business in a country. New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong. The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136. Ranking helps in improving parameters which are essential to attract both domestic and foreign investors.
Source: Business Standard
The Indian rupee rose 3 paise to close at 70.91 against the US dollar on Wednesday amid lack of triggers and geopolitical uncertainties. Easing crude oil prices propped up the local unit, though fresh capital outflows capped the gains, forex traders said. Trading in emerging market currencies was subdued after British Prime Minister Boris Johnson lost the crucial Brexit Bill timetable vote. Besides, markets are also awaiting fresh cues on the potential US-China trade deal, they added. At the interbank foreign exchange, the rupee opened lower at 71.01 then fell to 71.03 against the greenback. The domestic unit finally settled for the day at 70.91, higher by just 3 paise over its last close. "Due to mixed global cues, investors are seen on sidelines. Lack of fresh triggers is causing rupee to trade in a range 70.80-71.05 in the last couple of days," said Rahul Gupta, Head of Currency, Emkay Global Financial Services. Unless we do not get clarity over the global geopolitical issues like US-China trade deal or Brexit, we will not see much participation in the market, he added. According to Gaurang Somaiyaa, Forex and Bullion Analyst, Motilal Oswal Financial Services, "rupee failed to move out of the range of 70.70 and 71.30 (spot) following lack of cues on the domestic front. In the next couple of sessions, rupee is expected to take cues more from the global factors than domestic factors and primarily from fresh updates on the Brexit front." Brent crude futures, the global oil benchmark, fell 0.77 per cent to USD 59.24 per barrel. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 213.23 crore on Wednesday, as per provisional data. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.03 per cent to 97.55. The 10-year government bond yield was at 6.51 per cent. On the domestic markets front, equity indices found firmer ground on Wednesday, led by IT, finance and auto stocks. After swinging over 330 points in a choppy session, the 30-share BSE Sensex ended 94.99 points, or 0.24 per cent, higher at 39,058.83. The broader NSE Nifty too advanced 15.75 points, or 0.14 per cent, to settle at 11,604.10.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1001.53 |
USD/Ton |
-0.14% |
10/23/2019 |
|
VSF |
1516.43 |
USD/Ton |
0% |
10/23/2019 |
|
ASF |
2167.63 |
USD/Ton |
0% |
10/23/2019 |
|
Polyester POY |
1007.18 |
USD/Ton |
1.35% |
10/23/2019 |
|
Nylon FDY |
2316.66 |
USD/Ton |
-0.61% |
10/23/2019 |
|
40D Spandex |
4082.41 |
USD/Ton |
0% |
10/23/2019 |
|
Nylon POY |
5339.63 |
USD/Ton |
0% |
10/23/2019 |
|
Acrylic Top 3D |
1236.03 |
USD/Ton |
0% |
10/23/2019 |
|
Polyester FDY |
2168.34 |
USD/Ton |
-0.65% |
10/23/2019 |
|
Nylon DTY |
2302.54 |
USD/Ton |
0% |
10/23/2019 |
|
Viscose Long Filament |
1115.95 |
USD/Ton |
0% |
10/23/2019 |
|
Polyester DTY |
2521.49 |
USD/Ton |
0% |
10/23/2019 |
|
30S Spun Rayon Yarn |
2124.55 |
USD/Ton |
-0.07% |
10/23/2019 |
|
32S Polyester Yarn |
1617.43 |
USD/Ton |
-0.43% |
10/23/2019 |
|
45S T/C Yarn |
2415.55 |
USD/Ton |
0% |
10/23/2019 |
|
40S Rayon Yarn |
2373.17 |
USD/Ton |
0% |
10/23/2019 |
|
T/R Yarn 65/35 32S |
1963.51 |
USD/Ton |
-0.71% |
10/23/2019 |
|
45S Polyester Yarn |
1779.88 |
USD/Ton |
0% |
10/23/2019 |
|
T/C Yarn 65/35 32S |
2274.29 |
USD/Ton |
0% |
10/23/2019 |
|
10S Denim Fabric |
1.25 |
USD/Meter |
0% |
10/23/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
10/23/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
10/23/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
-0.74% |
10/23/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
10/23/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14126 USD dtd. 23/10/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Chinese textile manufacturing giant Wuxi No. 1 Cotton Textile PLC recently opened its Ethiopian unit, with an aim to export most of its products to global markets, primarily mainly Europe, North America and Asia. Constructed at a cost of $220 million, Wuxi No. 1 Cotton Ethiopia Textile Plc. was officially inaugurated on October 18 in Dire Dawa city. Zhang Shengming, general manager of the Ethiopian venture, told a news agency that the textile plant has a capacity to process 300,000 spindles. The first phase of the project has been already completed with a capacity to process 100,000 spindles. The plant, which is said to be the largest textile workshop to be constructed in the East African country, is expected to create about 3,500 jobs once the second phase is completed. The textile firm also expects to tap into the 752 km-long first transnational electrified railway in Africa in its export ambition.
Source: Fibre2Fashion
With the increasing call for sustainability in the global fashion industry, H&M and IKEA announced to collaborate on a large-scale study reviewing chemical content in post-consumer textile recycling.
H&M-IKEA collaboration
The collaboration is needed as companies with strict standards about chemicals in their products are cautious about using recycled material they cannot control. At the Textile Exchange Sustainability Conference 2019 gathers companies and organizations from more than 25 countries and provides the perfect setting to present the joint efforts made to address this challenge. Anna Biverstål, H&M Group’s Global Business Expert on Materials and Nils Mansson, Materials and Innovation Deployment Manager at IKEA Range and Supply, presented the study and shared some initial findings with the industry. “Recycled materials are key elements in a circular economy. However, increasing the use of recycled materials whilst ensuring that we keep these textiles free of toxic chemicals presents a challenge for the industry. We’re pleased to announce that H&M Group and IKEA have joined forces in a study to address this challenge,” said Anna Biverstål, Global Business Expert on Materials at H&M Group. “Recycled materials are key elements in a circular economy. However, increasing the use of recycled materials whilst ensuring that we keep these textiles free of toxic chemicals presents a challenge for the industry. We’re pleased to announce that H&M Group and IKEA have joined forces in a study to address this challenge.”
ANNA BIVERSTÅL, GLOBAL BUSINESS EXPERT ON MATERIALS AT H&M GROUP
With over 8,000 tests conducted on collected recyclable textiles, H&M Group and IKEA will have better possibilities to develop an action plan for the use of recycled textiles, while meeting our strict safety standards. The ambition for the study is also to use the findings to encourage industry peers towards increased use of recycled textiles. The results gathered could potentially also serve as a base for further legislation and standardization regarding chemicals in recycled textiles. “By sharing initial findings from the study, we can create awareness and a new understanding to review the entire value chain of textiles, from production and consumption, towards recycling,” Linn Farhadi, Project Leader Recycled Textiles at H&M Group. The initial focus for the study has been post-consumer cotton, with polyester and wool-rich post-consumer textiles to be included as the study progresses. Collaborations and data sharing within and across industries are key to enable real, positive change. This joint study between H&M Group and IKEA serves as a great example of this approach.
Source: Textile Today
The three-day event was jointly held by the Vietnam National Textile and Garment Group (Vinatex), Vietnam Textile and Apparel Association (VITAS) and CP Exhibition Hong Kong. VITAS Vice Chairman Truong Van Cam said that the expo is one of the important events of the Vietnamese garment and textile industry which gathers advanced technology, equipment and accessories in the industry as well as the latest information to serve the Vietnam’s garment and textile industry. According to Vinatex General Director Le Tien Truong, the expo covers over 5,700m2 with the participation of 179 suppliers from 15 countries and territories across the world such as China, the Republic of Korea, Germany, Italy, the UK, the US and others. HanoiTex2019 will create conditions for Vietnamese garment and textile industry to learn and select modern and environmentally friendly equipment. The event will also provide an opportunity for enterprises to meet partners, promote their brands and seek business opportunities. Deputy Minister of Industry and Trade Cao Quoc Hung said that the garment and textile industry has proved its significant role in generating jobs, ensuring social welfare, and contributing to the budget. Vietnam is now ranked third in the world in terms of garment and textile exports with an export revenue of over US$36 billion in 2018 and an estimated export revenue of US$40 billion in 2029. The industry has created jobs for more than two million people and continues to generate an additional 200,000 jobs each year.
Source: Nhan Dhan Online
Over the last 30 years, fast fashion has encouraged consumers to develop an insatiable desire for the new meaning that the old is often thrown away before the end of its life. As clothing has become increasingly disposable, an environmental catastrophe has been brewing that is directly related to the bad relationship we have with our wardrobe. According to multidisciplinary designer, Roya Aghighi, this “passive act” of consumption prevents us from engaging with what we wear so that we don’t notice the incredible amount that we neglect and waste. “Clothing is the closest object to our body yet the only times we are conscious about it is at the beginning of the day when we choose what to wear or when we spill coffee on it,” Aghighi says. Materials, she reveals, are the key to changing how we interact with everyday items like clothing and revolutionary changes could shape our experiences for the better. “My approach to bio-design goes beyond only considering it as problem solving,” she tells Euronews Living, instead she focuses on how the design process can be rebuilt from the bottom up to make us rethink these wasteful habits and behaviours.
WHAT IF WHAT YOU WORE WAS ALIVE?
This is where “biogarmentary” comes in. A “vision of the future”, Aghighi’s innovative project presents items of clothing constructed from a material that photosynthesises. Created in collaboration with the Materials Experience Lab and scientists from the University of British Columbia, the textile is made from a combination of natural fibre based fabrics and living photosynthetic cells. These single-celled, green algae could even purify the air around you as they “breathe”. This thought-provoking approach goes beyond providing a sustainable fashion solution, however. Unique care instructions require wearers to form a more complex relationship with Aghighi’s clothing than with their usual cotton jacket. “In taking care of the current biotextile which is made out of Algae, users need to be aware of the fact that they don’t need to wash their clothes,” she says, “They could simply submerge the living textile into water when the textile requires to be washed which will provide the cells with necessary water”. The material also loves light meaning that shoving it to the back of the cupboard won’t do it any favours. “Close your eyes for a moment and imagine the clothes you are wearing right now are alive,” she says, “With that thought, your interaction with your daily clothes would imminently change. You are less likely to throw your clothes in a dark closet or washing machine. It could even make users more conscious about daily choices as simple as where is safe to sit, or if you knew your garment could feed off your sweat would that encourage you to exercise more?”
CARING FOR YOUR CLOTHING
If biogarmentry were a widespread thing, whether or not your clothing survived would be directly related to the attention you give it. Through increasing care and awareness of its needs a transformation of values would occur that could help reduce waste by changing our perception of textiles. Aghighi hopes this project will inspire a shift in perception surrounding clothing implementing what the designer calls a “deeper, more holistic idea of change”. Biogarmentry allows its owner to form a more intimate relationship with their clothing to transform attitudes of "buy, use and dispose" to "buy, care for and compost". Although it is only a proof of concept for the new material, it raises clear questions about how we interact with what we wear. “In other words, biogarmentry aims to utilize humans emotional attachments to living creatures to bring the lost value and agency back to textiles and clothing consumption,” she says, “It challenges our current relationship to clothing while acting as a catalyst for behavioural change.” A shift away from our current consumerist attitude is desperately needed. Instead of buying in line with constantly changing kaleidoscope of fashions, longevity needs to be higher up on our list of desirable characteristics. “In the current fashion industry more than 90% of clothes don’t even reach their mid-way potential,” Aghighi explains, “Most clothes find their way into landfill after only second or third wear.” In the UK this amounts to around £140 million worth of clothing being thrown away each year with £30 million hidden away unused in wardrobes, according to WRAP. Aghighi is confident that design using innovative materials is the best way to inspire this much-needed change. “I believe that no change will happen until we shift our fundamental beliefs and habits. I see materials as building blocks of the design process which could have an invaluable impact on human interactions with their surroundings.” By challenging how we currently view clothing, Aghighi hopes that this project could be an inspiring catalyst for behavioural change to support a more sustainable culture. Inspired by an incredible disconnect, biogarmentry represents a radical future that could help solve fashion's growing problem with pollution and waste.
Source: Euro News
SINGAPORE: The International Monetary Fund (IMF) sees Indian economic growth rebounding to around 7 per cent in the next financial year, supported by measures like monetary policy stimulus and corporate income tax cuts. “We see the Indian economy rebounding from our projected 6.1 per cent growth this fiscal year to something like 7 per cent in the next fiscal year (2020). We see the factors that will support growth, including monetary policy stimulus, working their way through the pipeline,” Jonathan Ostry, deputy director, Asia Pacific Department at the IMF, told reporters. The recent tax cuts, government's progress in addressing lingering weaknesses in the financial sector and measures to support growth sectors as seen as factors underpinning growth in the near term, Ostry said. Talking about the slowdown in Indian economy in recent quarters, he said: “indeed (it) took many of us by surprise, including the IMF. "There wasn't a single cause for the slowdown … there were many different causes at work including corporate and regulatory environmental uncertainties, the stresses in the non-bank financial sector, (and) stresses in the rural sector, among others," he said. Asked about the Regional Comprehensive Economic Partnership (RECP), which India is reportedly cautious to sign as the multi-lateral trade pact negotiations are widely expected to be concluded in the coming months, he underlined the importance of having services included in the free-trade partnership agreement. Much greater attention to integration type issues is essential to sustain growth in south Asia, he said, adding "This needs to include not only goods trade, but more importantly services trade - which could provide a substantial engine of growth for India and other south Asian economies going forward,” said Ostry. There is a need to take steps to invigorate the deliberation process and structural reforms more generally because India has a potential enormous demographic dividend over the next couple of decades through which about 150 million people will be entering the workforce, he pointed out. “We consider services as an important source of growth and productivity to enhance investments in the period ahead,” he underlined. India's success in the service sector has been especially remarkable as its share of the world's information and communication technologies service exports almost tripled in a decade, from 6.3 per cent in 2000 to 17.8 per cent in 2010, recording the largest increase globally for the sector, according to the IMF report. “This performance was strongly associated with an emphasis on tertiary education and a low degree of regulation of the sector,” said the regional economic outlook 'Asia and Pacific - Caught in Prolonged Uncertainty: Challenges and Opportunities for Asia, released here on Wednesday. Asked for comments about the reported relocation of US companies out of China amidst the trade tension with the United States, Ostry said a key concern in this trade tension has been the undermining of the global supply chains and global technology chains.
Source: Times of India
