Replying to a supplementary question in the Upper House, Irani said in addition to existing markets, 12 new markets have been identified to boost opportunities in the export segment of textiles industry. The Centre is considering formulation of the National Textiles Policy in consultation with states, Union Minister Smriti Irani said on November 21. "The National Textile Policy is currently under consideration due to our consultation with the states," she said while replying during Question Hour in the Rajya Sabha. Replying to a supplementary question in the Upper House, Irani said in addition to existing markets, 12 new markets have been identified to boost opportunities in the export segment of textiles industry. "We are also in the process of ensuring that the small exporters become mid-sized companies through interventions by various government ministries," the minister said. She informed the House that under the ATUFS scheme, 1,868 applications have been received from various industry partners who have said that they have received a reported investment of Rs 13,612 crore post the Rs 6,000 package being announced. Responding to a supplementary question on refunds of embedded taxes to exporters, Irani observed that taxation was not under the ambit of her ministry (textiles) but assured that the government is seized of the challenges. "It is the first time in the history of textile industry in our country that embedded state and central taxes were refunded to our industry and the industry, in its conversation with not only my ministry (textiles) but ministry of finance, commerce and external affairs explores every possibility to strengthen possibilities of our industry," she said. To another supplementary question on what would have been effect on textiles industry if India chose to sign Regional Comprehensive Economic Partnership (RCEP) mega trade deal, Irani complimented Prime Minister Narendra Modi, who was present in the House at the time, on behalf of the textiles industry, for taking such a strong stand to protect the interests of India's manufacturing sector. "In fact we have been diligently trying to follow up FTA possibilities with nations which for years were never signed," the minister said. She thanked the External Affairs Minister S Jaishankar for partnering with the Textile Ministry to explore such opportunities. In a written reply, Irani stated the export of apparel under special package (October 2016 to August 2019) is Rs 3,27,895 crore which has increased by Rs 16,914 crore as compared with the previous corresponding period. No data on fixed term/direct jobs is available. In another written reply, she said under comprehensive Integrated Skill Development Scheme (ISDS), a total of 11.14 lakh persons have been trained during FY 2010-11 to 2017-18, in various diverse segments of textiles covering textiles and apparel, jute, spinning, weaving, technical textiles, sericulture, handloom and handicrafts. The training in ISDS also covered 33 states and Union Territories of the country, widely covering all sections such as women (71.27 per cent), Scheduled Castes (20.82 per cent), Scheduled Tribes (6.9 per cent) and divyang jan (0.28 per cent). Out of the 11.14 lakh persons trained so far, 8.43 lakh persons have been employed. She said special emphasis is also being laid on upskilling in apparel and garment segment for increasing competitiveness in the industry in global market.
Source: Money Control
Rajasthan’s Japanese connect is not limited to the dedicated industrial zone in Neemrana alone. The third largest importer of the world also gets 30% of its garments in womenswear segment from Jaipur. But that’s a scratch compared to the potential, said a top official of the Union textiles ministry. “Out of the $37 billion imports in textiles and garment, India accounts for only $500 million. On the other hand, exports to the US and Europe much bigger, at around $8-9 billion each. In the past one year we have been focusing on how to increase exports to Japan,” said Ajit B Chavan, secretary of Textiles Committee, Ministry of Textiles at an event organised by the Garment Exporters Association of Rajasthan. Chavan said that besides the barriers of language, quality is an issue with Japanese market. The issue also figured after the Prime Minister’s Modi’s visit to Japan in his first term where the top leadership directed ministries to find gaps and plug them for increasing exports to the country. “In our studies, we found that understanding quality standards of Japan is a key missing piece. Now, we have that in place and have a special desk to help exporters. Similarly, we found that Japanese trust products certified their labs. To address this, we have been negotiating with a Japanese company which is already in Jaipur to set up labs for testing,” said Chavan. The textiles Committee is already at an advanced stage for signing an MoU with the company to have roll out the testing facility across its 18 labs in the country. “The certificates of the test labs will be co-branded and will live up to the trust of the Japanese clients,” added Chavan. GEAR president Rajeev Dewan and general secretary Aseem Kumar who recently visited the government testing lab in Jaipur said the machines in the government lab is of superior quality and the tie-up with Nissenken will certainly open more scope. Currently, Nissenken runs a lab in Jaipur to facilitate the exporters in the city for testing Japan bound shipments.
Source: Times of India
The industry has requested the government to levy anti-dumping duty on yarn as well. Import of viscose yarn has shot up close to 200 per cent since May as China and Indonesia are dumping cheaper yarn into the Indian market. The industry is in a catch-22 situation while demanding increase in duties to check heightened imports, as it would work against the competitiveness in the downstream segments. Between May and September this year, the country has imported 14,510,000 kg of viscose yarn, 195 per cent higher than 4,920,000 kg imported in the same period last year. Since May, imports have been drastically going up, with July witnessing a 342 per cent growth in imports and August seeing an 816 per cent rise. Since the US-China trade war started slowing down the demand for viscose yarn globally, India has been increasingly witnessing dumping of viscose yarn. China and Indonesia have been dumping cheaper yarn into the country, thus ,affecting the spinning industry severely,” said Sanjay Jain, former chairman of the Confederation of Indian Textile Industry (CITI) According to Rakesh Mehra, Convenor, CITI’s Sub-Committee on Man-Made Fibre & Yarn, the inverted duty structure in viscose yarn and fibre also has led to the situation. “For viscose fibre, India levies import duty as well as anti-dumping duty, which leads to a total tax incidence of around 20 per cent, whereas yarn attracts only 5.5 per cent import duty. This makes importing yarn cheaper than getting domestically produced costlier fibre,” he said. India is self-sufficient in yarn and it does not need imports. “While most of the spinning mills are running on lower capacity, some smaller mills in south India are facing a tough time,” he said. Availability of cheaper viscose yarn will also affect cotton yarn demand as fabric-makers will use more viscose than cotton in their products. The industry has requested the government to levy anti-dumping duty on yarn as well. “We want the total tax incidence to be 15 per cent or at least 10 per cent on yarn to deter increasing imports,” said Jain. But this has put the industry in a difficult situation. If the yarn duties are increased, either fabric imports will go up or the entire value chain will become costlier, affecting the competitiveness of Indian products in the global market. But if the duties remain the same, imports will continue to impact the domestic spinning industry. “Ideally, there should not be anti-dumping duty in any segment to keep the prices under check down the value chain,” said Mehra.
Source: Asian Age
India’s Prime Minister Narendra Modi is putting the flagging economy back on center stage after announcing the biggest privatization drive in more than a decade and making renewed attempts to ring fence the crisis-ridden shadow banking sector. The country is in the midst of a deepening slowdown amid waning consumption -- the bedrock of the $2.7 trillion economy. And while Modi has targeted transforming India into a $5 trillion economy by 2025. On Wednesday, Indian authorities went on an overdrive. The government decided to sell its entire stake in the country’s second-largest state refiner, and its biggest shipping company. It also approved a proposal to pare stakes below 51% in some companies and pushed for an introduction of a new industrial code bill. Meanwhile India’s central bank seized a troubled shadow lender to try and contain defaults from spreading in Asia’s thirdlargest economy. This is Modi’s renewed attempt to instill confidence in India’s economic potential,” said Priyanka Kishore, head of India and Southeast Asia Economics at Oxford Economics, Singapore. She added it was imperative for the Modi government to announce these measures as it attempts to bridge a widening fiscal deficit following the dismal tax collections and cuts to corporate tax rates worth $20 billion. Earlier this month Moody’s Investors Service cut the country’s sovereign debt outlook to negative amid concerns over slowing growth and revenues. After winning a second consecutive term earlier this year promising rapid economic development, Modi is realizing his popularity and support going forward hinges on passing tough reforms that unleash growth -- and create jobs -- in Asia’s third-biggest economy. The economy expanded 5% in April to June, the slowest in six years and a far cry from 8% seen just a year ago. Expectations from data due next week isn’t rosy either.
Steep Target
Modi is seeking to raise a record 1.05 trillion rupees from asset sales. He has so far has resisted big-ticket privatization and restricted sales of its holdings to other state companies, including the 369.2 billion-rupee ($5.14 billion) sale of Hindustan Petroleum Corp. to the biggest explorer Oil & Natural Gas Corp. last year. Now his administration is selling the government’s entire stake in Bharat Petroleum Corp. and Shipping Corp. of India Ltd. “The government’s steep $15 billion -- 5% of its total revenues -- disinvestment target in FY’ 20 may in our view need to be higher given the recent cut in the corporate tax rate and policymakers’ focus on macro stability,” said Gautam Chhaochharia, head of India research at UBS Securities India Pvt Ltd, Mumbai. The administration’s focus on getting the economy back on track comes as it plans to offer 324 companies including Tesla Inc.and GlaxoSmithKline Plc incentives to set up factories in a bid to capitalize from the trade war between China and the U.S. India has jumped 14 places to 63rd in the World Bank’s annual rankings for ease of doing business, rolled back a levy on foreign funds, injected $10 billion into sick banks and relaxed foreign direct investment rules in coal mining, contract manufacturing and single-brand retail trading. The Reserve Bank of India is also poised to cut rates further after having delivered 135 basis points of rate reductions so far this year. On Wednesday, it moved to seize control of a second non-bank lender, Dewan Housing Finance Corp., stepping up efforts to contain the economic fallout from the nation’s shadow banking crisis. The year-long crisis in the shadow banking sector has snowballed to become a drag on consumption and pulled down overall growth. “While the markets will view this as positive, the move also goes to deflect the investor attention away from the government’s noneconomic agenda,” said Prakash Sakpal, Economist with ING Bank NV in Singapore. “Despite massive stimulus both the RBI and government has unleashed this year, the economy continues to be stifled as will be shown by the forthcoming GDP figures.”
Source: Economic Times
The government on Thursday informed Parliament that a total of 11.14 lakh persons have been trained from 2010-11 to 2017-18 under the Comprehensive Integrated Skill Development Scheme(ISDS) in various segments of textiles covering textiles and apparel, jute, spinning, weaving, technical textiles, sericulture, handloom and handicrafts. The training in ISDS also covered 33 states and Union Territories of the country, widely covering all sections of the society such as women(71.27%), Scheduled Caste(20.82%), Schedule Tribes (6.9%) and Divyang Jan(0.28%). “Out of the 11.14 lakh persons trained so far, 8.43 lakh persons have been employed,” textiles minister Smriti Zubin Irani told Rajya Sabha in a written reply. She also said the textiles ministry has expanded the skill development programme, called Samarth, for the entire value chain of the textiles sector except spinning and weaving in organized sector which are being trained under Pradhan Mantri Kaushal Vikas Yojana, with a target of 10 lakh persons at a totat outlay of Rs 1,300 crore. The ministry has already partnered with 21 government agencies from 18 states and sectoral organisations covering nearly 4 lakh persons, for entry level training and job creation in both traditional and organized segments of textiles value chain.
Source: Economic Times
Stating that the economy is in bad shape, former Reserve Bank governor C Rangarajan has said at the current growth rate, reaching the USD 5-trillion GDP target by 2025 is "simply out of question". The Modi government soon after assuming office for the second term has set a target of taking the economy to USD 5 trillion over the next five years. But since there have been dark clouds gathering all over the economy leading many to question the maintainability of the target. The economy has been on steady decline with growth rate slowing from 8.2 percent in FY16 to 6.8 percent FY19. While the first quarter growth slipped to a six-year low of 5 percent, the best forecast for the second quarter is 4.3 percent now. Even RBI has lowered its growth full year forecast by a full 9o bps in two months to 6.1 percent in its October policy review. "Today our economy is about USD 2.7 trillion and we are talking about doubling this over the next five years at USD 5 trillion. The required rate of growth to achieve that level is in excess of 9 percent per annum. Reaching USD 5 trillion by 2025 is simply out of question," Rangarajan said here on Thursday. You have lost two years. This year it is going to be under-6 percent growth and next year it may be about 7 percent. Thereafter the economy may pick up," he said while addressing a function organised by IBS-ICFAI Business School. He also if at all the GDP becomes a USD 5-trillion gorilla, our per capita income will grow still USD 3,600 up from the present USD 1,800, leaving us still in the low-middle income country bracket. "The definition of a developed country is the one whose per capita income is USD 12,000. It will take 22 years for us to reach that level provided we grow at 9 percent per annum," the former central banker said.
Source: Economic Times
India and the United States are in talks to resolve trade issues and both New Delhi and Washington hope to find an early solution, an Indian foreign ministry spokesman said on Thursday. "Discussions have been going on between the two sides," Raveesh Kumar, a spokesman for India's foreign ministry, said in a news conference. "We remain optimistic that a solution will be found very soon," Kumar said. The two countries have been locked in trade disputes for months, slapping higher tariffs on each other's products and the US withdrawing a key concession to India.
Source: India Today
A high-level panel is contemplating setting up a common fund pool for all skills related schemes and a decision to this effect could be made soon, skills development minister Mahendra Nath Pandey told ET in an interview. We are evaluating having a common fund for all skill development-related schemes,” he said, adding that a recently formed cabinet committee for skill development will be discussing this and “we will come to a consensus on what works best and how it should be regulated.” The government is of the view that it was important that all skill development programs being imparted in the country are aligned to common norms and have a common overall objective, which is to make youth employable and efficient. The government spends nearly Rs 15,000 crore every year on skilling through different schemes spread across 20 different ministries. This is topped up with matching contribution from states, taking the total spend to Rs 30,000 crore annually. The minister, however, refuted any possibility of a unified skilling scheme for the country, something which was under consideration at the ministry level earlier. “Considering the diversity of the country and varied geographies and segments, one scheme cannot justify the local requirement for skilled workforce across all,” Pandey said. Talking about his government’s priorities, Pandey said it is crucial to invest in quality secondary and tertiary education and in vocational education and training (VET) if India’s economy is to develop and remain competitive in world markets. “We are focusing on bringing about a shift from unorganised to an organised economy through recognition of prior learning and giving additional emphasis on ensuring job continuity,” he said. Reiterating his commitment towards aligning skills training with education, the minister said it was imperative that children be acquainted with skills at an early age so they can make their choices in their formative years. The ministry of skill development and entrepreneurship (MSDE) is working closely with the ministry of human resource development (MHRD) to set up skill hubs across 500 CBSE schools — 400 private schools and 100 government schools. Over 7 lakh students have benefited in close to 20 skills across 9,100 schools in 26 states. Commenting on the response of corporates towards government’s apprenticeship scheme, Pandey said that while some sector skill councils have performed more than our expectation, some certainly need a push as there is some gap in the visionary approach of their leadership of these sector skill councils. “We are relooking at our approach with them and will further strengthen them,” he added. The National Skill Development Corporation (NSDC), under the ministry, has collaborated with about 80 industry partners thus far with a CSR portfolio of Rs 204 crore.
Source: Economic Times
Many branded apparel players started with discounts and other promotional offers ahead of the Dussehra and Diwali consumer demand. Despite rural economic distress, branded apparel makers posted higher profits in the September quarter, due to reduced raw material prices and better cost management through closure of unprofitable points of sale (PoS). Kewal Kiran Clothing (KKCL) had reported 10 per cent revenue growth, a positive sign in revival of demand for branded apparel. Its leading ‘Killer’ jean brand saw sales rise 24.2 per cent from a year before; those of its other brand, Easies by Killer, grew 11.4 per cent. “These two brands cumulatively contributed about 70 per cent to the overall sales during the quarter. The brands also sustained their market share, led by the company’s focus on branding activities like organising various large scale autumn winter bookings at a mega event organised in Goa and via other promotional activities,” said Kewalchand P Jain, chairman. Many branded apparel players started with discounts and other promotional offers ahead of the Dussehra and Diwali consumer demand. These lured customers to increase their purchases; seasonal discount offers were also extended beyond the normal one-month period. S P Apparel reported 133 per cent increase in net profit at Rs 34.8 crore for the quarter from a year before. Net profit at Welspun India jumped 73 per cent to Rs 198.5 crore. Kitex Garments saw 64.4 per cent growth to Rs 36.8 crore; Raymond’s rose 33.5 per cent to Rs 84 crore. Siyaram Silk also reported higher profit. “The improvement in sales and net profit of branded apparel makers was led primarily by a decline in raw material prices. Prices of all raw materials — cotton, yarn, etc — declined,” said an analyst with a leading equity brokerage. The benchmark MCX spot cotton (29 mm) price declined 8.5 per cent in the quarter to Rs 19,910 a bale (170 kg), from Rs 21,760 a bale in early July. Cotton prices fell in both October and November, too. Since October, these are down seven per cent, to trade currently at Rs 18,540 a bale. With a fall in export, cotton yarn and manmade fibre prices also declined during the September quarter. “Cotton yarn continues to see reduced export, owing to lower demand and increased competition. Export fell by 40 per cent month-on-month during July, majorly due to the 80 per cent year-on-year fall in demand from China. China has entered into the second phase of a free trade agreement with Pakistan on goods worth $64 billion, of which cotton yarn directly competes with India’s,” said Abhishek Rathi, senior analyst at India Ratings and Research. Manmade fibre saw a consecutive month of stabilisation on stable crude oil prices in August. However, there was instability in prices during September with the attack on the Aramco refinery in Saudi Arabia. Price have since fallen 20 per cent with the news of fast recovery of the attacked sites. While rural economic distress continues, apparel makers have consolidated their business, with focus on profitable ventures. While analysing Page Industries’ quarterly profit, Macquarie said: “The strong recovery in sales growth is positive but sustaining this will be key. The quarter was driven by early festivals and higher retail incentives, but there was margin pressure with this and inflation in operating cost.”
Source: Business Standard
Contrary to the claims of the Union government and its leaders that demonetisation and GST were right decisions for the economy, the story is other way round. Three years after demonetisation, the things still not have come back on track for the small scale entrepreneurs who have been trying to make a living by working in the textile sector. Chamkaur Singh, whose family is into the piecework of shawls since 1998 has never seen such a worse time. According to Singh , demonetisation and GST his business has fallen down by 50 percent ever since 2016 and he and his family are having a tough time to cope up with the situation. Singh, owner of a small scale unit in Moti Nagar said, “In 2016, when the government announced demonetisation, I had sleepless nights as businesses came to a halt post banning of old currency notes. However, after 5-6 months when the situation started returning to normalcy, the central government implemented GST and all of a sudden everything changed. The big factories who used to send me shawls for piecework, stopped sending me work and asked me to get a GST number first. Even though I did not even fall under the eligibility criteria of having a GST number (as my annual turnover was not even half of the exemption limit of GST). Later, I got registered under GST as otherwise I would have lost my livelihood.” Singh adds, “After taking the GST number my expenditure too rose sharply as every month I had to shell money to file my GST returns and also maintain books of accounts. For a brief period I kept getting piecework business from bigger factories but slowly, almost all my customers stopped sending me work as they started doing the work in their factories.” “When I asked them the reason for the same I was told that they can not give me business as post GST dealing with me has become difficult and costlier for them as first they have to pay GST on the raw material and then they send that raw material and other stuff to me for piecework, after this they pay GST to me on the work done by me and later on apply for refunds of GST paid on raw material and paid to me which is complicated and time consuming. They added that difficulties to generate eway bills every time for sending and receiving the stuff sent for piecework was making the matters worse.” Explaining further Singh adds, “This is how my business has collapsed and its further going down. Now, I am getting work only for 2-3 months. The companies now send me work only when they have more orders than the capacity of the machines installed in their factories for this work. I don’t think I will be able to survive this for long as profit margins have come down excessively and expenditures are rising.”
Source: Times of India
More than 200 economists and academicians have asked the government to release data of all surveys and reports, including results of the Consumer Expenditure Survey 2017-18, completed by the National Sample Survey Office (NSSO). According to some media reports, the 2017-18 Consumer Expenditure Survey shows a sharp decline in average consumption and the survey results are not being released because they support other evidence that the economy is experiencing a downturn, they said in a statement. "It should be noted that consumption surveys are known to give results that diverge from macroeconomic estimates of the National Accounts," they said. Also, National Accounts estimates are based not only on administrative data but on a combination of sources including NSSO and other surveys. Several committees have looked into these discrepancies. "In the interest of transparency and accountability, all data must be released without delay and irrespective of what the results are. "The government may wish to defend itself against interpretations of the statistics that it disagrees with," the statement said. But this is best-done through technical papers and seminars. To prevent release of data that are adverse, and diverge from its own understanding, is "neither transparent nor technically sound", it said. "We therefore demand that the government should immediately release the report and unit-level data of the 75th Consumer Expenditure Survey. The government should also commit to release all other survey data after the usual processes to check for possible errors have been concluded," they said. The economists and academicians who issued the statement, include A Vaidyanathan and Abhijit Sen (former members of erstwhile Planning Commission), Biswajit Dhar (JNU), Dilip Mookherjee (Boston University), Maitreesh Ghatak (LSE), Prabhat Patnaik (Emeritus Professor, JNU), and Thomas Piketty (Paris School of Economics).
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
946.72 |
USD/Ton |
0% |
11/21/2019 |
|
VSF |
1449.93 |
USD/Ton |
0% |
11/21/2019 |
|
ASF |
2181.29 |
USD/Ton |
0% |
11/21/2019 |
|
Polyester POY |
991.50 |
USD/Ton |
0.72% |
11/21/2019 |
|
Nylon FDY |
2132.25 |
USD/Ton |
-1.32% |
11/21/2019 |
|
40D Spandex |
4079.71 |
USD/Ton |
0% |
11/21/2019 |
|
Nylon POY |
5373.27 |
USD/Ton |
0% |
11/21/2019 |
|
Acrylic Top 3D |
1215.38 |
USD/Ton |
0% |
11/21/2019 |
|
Polyester FDY |
2025.64 |
USD/Ton |
-0.35% |
11/21/2019 |
|
Nylon DTY |
2317.05 |
USD/Ton |
0% |
11/21/2019 |
|
Viscose Long Filament |
1087.45 |
USD/Ton |
0.66% |
11/21/2019 |
|
Polyester DTY |
2402.34 |
USD/Ton |
-0.88% |
11/21/2019 |
|
30S Spun Rayon Yarn |
2061.18 |
USD/Ton |
0% |
11/21/2019 |
|
32S Polyester Yarn |
1563.65 |
USD/Ton |
0% |
11/21/2019 |
|
45S T/C Yarn |
2402.34 |
USD/Ton |
0% |
11/21/2019 |
|
40S Rayon Yarn |
2317.05 |
USD/Ton |
-1.21% |
11/21/2019 |
|
T/R Yarn 65/35 32S |
1919.03 |
USD/Ton |
0% |
11/21/2019 |
|
45S Polyester Yarn |
1748.45 |
USD/Ton |
0% |
11/21/2019 |
|
T/C Yarn 65/35 32S |
2288.62 |
USD/Ton |
0% |
11/21/2019 |
|
10S Denim Fabric |
1.26 |
USD/Meter |
0% |
11/21/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
11/21/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
11/21/2019 |
|
30S Rayon Fabric |
0.55 |
USD/Meter |
0% |
11/21/2019 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
11/21/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14215 USD dtd. 21/11/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The restrictive measures cover an estimated USD 460.4 billion worth of traded merchandise, an increase of 37 per cent over the same period previous year. The G20 countries have imposed as many as 28 new trade-restrictive measures such as tariff increases, import bans and stricter customs procedures for imports between mid-May and mid-October 2019, according to a WTO report. G20 members include India, Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, Russia, the UK, and the US, among others. "In terms of numbers, G20 economies implemented 28 new trade-restrictive measures between mid-May and mid-October 2019, mainly tariff increases, import bans and stricter customs procedures for imports," according to the WTO's trade monitoring report. It said these trade restrictions among G20 economies remain at historic high levels. The restrictive measures cover an estimated USD 460.4 billion worth of traded merchandise, an increase of 37 per cent over the same period previous year. With restrictions accumulating over time, the share of global trade covered by such measures has soared, the report said. Commenting on the report, WTO Director-General Roberto Azevedo called on G20 economies to de-escalate trade tensions to spur investment, growth and job creation. "Historically high levels of trade-restrictive measures are having a clear impact on growth, job creation and purchasing power around the world. We need to see strong leadership from G20 economies if we want to avoid increased uncertainty, lower investment and even weaker trade growth," he said. Further, the report said a total of 36 new measures aimed at facilitating trade, including eliminating or reducing import tariffs, and export duties.
Source: Business Standard
Over the last 3 decades the export performance of Pakistan has remained abysmal as compared to other countries in the region with similar dynamics. The economy faced many internal and external challenges like currency devaluation, high cost of doing business, energy crisis, inflated crude oil prices, internal political instability, and war on terror situation. Required investment to stabilize economy and generate GDP growth was unavailable because the viability of economic outlook was not congenial for the fresh investment consequentially resulting in dismal trade performance. The export performance comparison of Pakistan, Bangladesh, India and Vietnam for the year 2017-18 illustrates that our competitors have outperformed us. Bangladesh exported goods worth $36.66 billion, Vietnam had total exports of $ 31.5 billion, and India's were US $ 302.84 Billion while Pakistan's exports were a meagre US $23.228 billion for the same year 2017-18. The inability of Pakistani exports to tap some of the most dynamic world markets along with high product concentration and low-technological level is because of several reasons; firstly, lack of product diversity and low value added products; secondly, lack of market diversification; and thirdly, enormous unrealised SMEs' potential and low skill development. However, fresh investment in the manufacturing sector is the prerequisite for all export enhancement initiatives. Pakistan's investment-to-gross domestic product (GDP) ratio has been hovering around 15% while other developing countries like China, India and South Korea have maintained the ratio above 30% putting their respective economies on a sustainable path. Investment-to-GDP ratio should be raised to at least 20-25% to increase productivity and exports for a sustainable economic future. Our economy relies heavily on cotton production and the textile sector. The cotton-processing units and textile industries make up almost half of the country's manufacturing base. This sector alone accounts for 11 percent of GDP and approximately 60 percent of export receipts, hence any investment/improvement in this sector has a potential to significantly increase country's exports. However, withdrawal of zero-rated regime and imposition of 17% GST, along with steep depreciation of local currency together have squeezed the flow of money in exporting sectors. The immediate impact of the withdrawal of SRO 1125 is the transfer of Rs. 300 billion float from industry to FBR for an extended period of time. By the collection of Rs. 300 billion from the exporting industry, the government has started another refund cycle soaking up market liquidity. Over the last decade the liquidity squeeze in the textile sector has reduced investment in technical machinery to a dismal level of 44 percent of what it was in 2005-2006.The textile sector has not been able to accumulate capital to invest in up-gradation of the industry due to slim margins, liquidity crunch owing to stuck refunds and lack of profitability over the last five to six years. The government owes approximately Rs.200 billion of refunds to the exporting sector and the settlement of these refunds can bring about liquidity in the market for investment that would revive the textile units and hence exports. In 2006, according to a survey carried out by International firm GHERZI Pakistan's industry had relatively new machinery and a technological edge over its competitors. Over the last decade investment in the country's textile industry fallen because of high cost of doing business resulting in the industry losing its technological advantage over its competitors. The 30% production capacity across spinning, weaving and processing sectors with export potential of $4 billion has closed down in Punjab in last 4 years due to inappropriate policies and the high cost of doing business. With the government's determination to boost exports, textile sector investment in their manufacturing infrastructure and upgradation of their production units can deliver on the aim of enhanced exports because of its innate advantage of substantial infrastructure in the country. This sector has the potential to increase textile exports from $13.32 billion (FY 2018-19) to $25 billion in the next 5 years and to $50 billion in next 10 years. Textile sector requires a total of 9.3 billion dollars additional investment to raise textile exports from $13billion to $29.15 billion in five years. In addition to $6.80 billion to raise exports, approximately $2 billion is also required for revival of closed industry that has a potential to increase exports by $4 billion and $0.5 billion for technology and skill development is required to be injected into the textile sector. The government rationalized energy prices from January 1, 2019 for the exporting sector by fixing electricity tariff at 7.5 cents/kwh and RLNG price at $6.5/MMBTU. This initiative has reduced cost of doing business restoring exports viability. Pakistan's textile and clothing exports grew by over four percent year-on-year during the first four months of 2019-20. Furthermore, the US- China trade war has opened a window of opportunity for Pakistan resulting in export order books full of Pakistani textile exporters for this season but unfortunately the sector does not have the required capacity to meet these orders. New investment is mandatory for the expansion of the existing production infrastructure and the up-gradation of technological capacity. Nevertheless, targeted policy initiatives in the specific textile sector need to implement which will enhance exports within a few years but will also have a multiplier effect in the long term creating job opportunities, increasing GDP and stabilizing socio-economic outlook of the country. For instance, setting up of 1000 garment plants with the total investment of US $ 7 billion will generate annual exports of $20 billion and will provide employment to 700,000 workers. If each plant consists of 500 stitching machines for an investment of $7 million, it would be able to produce garments for exports of $20 million, while generating employment for 700 workers. These 1000 garment plants can be established near major textile producing cities such as Lahore, Sheikhupura, Faisalabad, Kasur, Multan, Sialkot, Rawalpindi, Karachi and Peshawar. To remain competitive in international market, necessary support is obligatory to attract further investment in new machinery and technology compared to the incentives given by our competitors like Vietnam, China, India and Bangladesh. Investors are also reluctant to invest due to burden of taxes, regulatory procedures and unsustainable policies. The $ 29 billion textile exports, 15 million bales of cotton production, revival of $ 4 billion closed potential; job creation and further investment in textile sector are all subject to a successful and fast track implementation of Prime Minister's Export Enhancement Vision and a long-term textile policy to back it up.
Source: Business Recorder
I don’t know another business quotation that has proven right over time like this one: “Every company will be a tech company.” The reason I say that is whatever you do, if you want to do it better, you need to be very efficient at technological solutions for the industry that you are working in. If you look at the biggest companies, you will see that they know how to use the latest technologies effectively. Some of those companies are so efficient that they began to provide technology services to others. Amazon was the leader in this phenomenon. They were so efficient in cloud technology that another company was born out of it called Amazon Web Services (AWS), which is one of the biggest software solution companies in the world. Of course, since Amazon was born into the web, it might be expected that they excelled in cloud technology. There are, however, some surprising tech giants that were once a small department in industries that were not directly related to high-end technology. Hugo Boss Solutions is such an example. I didn’t know that the world-renowned suit maker is a technology leader. I knew that Hugo Boss had a world-class manufacturing plant in İzmir but did not know that they provide Industry 4.0 services as well. The Hugo Boss factory in İzmir is a beacon of productivity. They are producing 900,000 suits, 2 million shirts and 550,000 women’s garments with 4,000 workers. With such expertise, Hugo Boss Solutions provides production systems engineering, digital transformation, lean manufacturing, quality and assurance systems, organizational development, field managers development and leadership development services. There are many consulting companies offering similar services in Industry 4.0 and smart factory development processes. Hugo Boss Solutions, on the other hand, distinguishes itself from other companies with its scope, complexity and high skill. It is great that they are using the factory in İzmir as a real-life laboratory. It means that Turkish engineers are creating value for the world. Applications using augmented reality, virtual reality and voice recognition technologies in the Izmir plant have already been integrated into production lines. Among these applications, the Intelligent Artificial Intelligence Management (SAIL) project received the first prize in the production technologies category of International Data Corporation (IDC), one of the world’s leading big data and artificial intelligence institutions, in 2018. Virtual Dojo project, which includes virtual reality applications and facilitates and enhances the effectiveness of operator training processes, has won two international awards in the field of training and development. Textiles is one the most important industries for Turkey. We need to keep up with the latest technologies if we as a country would like to keep textile leadership in the world. This can only happen if more companies invest in technology and research and development as Hugo Boss does.
Source: Daily News
Denmark’s Novozymes is launching in Bangladesh the ‘Livelong solution’, which extends the life of plant-based fabrics by 20 per cent, making garments look new wash after wash, and saves substantial water, chemicals and energy by reducing waste. The enzyme technology is expected to help make the textile industry more sustainable, the Danish Embassy in Dhaka said in a statement. Buying clothes that last longer is one of the best and easiest things that consumers can do to make an eco-friendly choice, Bangladesh media reports quoted company vice president Jens Kolind as saying. Besides, viscose, modal and lyocell are made from fibres widely recognised as more sustainable than conventional cotton, which requires high levels of water and pesticides to produce.
Source: Fibre2Fashion
A team from the University Minnesota have developed material made from shape memory alloys that can conform accordingly to a person’s body and could be used in space travel. A team at the University of Minnesota has developed a new shape-changing textile that can be used for the development of next-generation smart clothing for space travel and other applications. The material is responsive to temperature and can be used to create self-fitting garments powered only by body heat. The textiles team includes professors and students in the university’s Design of Active Materials and Structures Lab and Wearable Technology Lab. The textiles resemble typical knits, but instead of traditional material, they are made from shape memory alloys (SMAs). These active materials change shape when heated. “This technology is a showcase of what is possible when connecting smart materials and traditional textile architectures, Kevin Eschen, a graduate student who worked on the project, told Design News. Eschen and fellow researchers envision the material can be used for next-generation clothing that can intelligently conform to a person’s body movements for the most optimal fit possible for complete freedom of movement. “I believe this technology highlights a very promising material-textile combination and hope that it inspires smart textile research using many other multifunctional materials and textile architectures (braiding, weaving, etc.) to enable the best smart textile product possible,” said Eschen.
Testing material potential
One area where such clothing would be needed is in the design of clothing for space exploration, which is why it’s not surprising that NASA partnered with the researchers to design and test the textile. Specifically, the team—led by Eschen, graduate student Rachael Granberry and professors Julianna Abel and Brad Holschuh—studied and observed the unique dimensions and movements of a human leg. They then subsequently designed, manufactured, and tested a knitted garment using their SMA textile that can precisely conform to that topography. “We have designed leg and wrist sleeves that self-fit to the human body upon donning,” said Eschen. “They are knitted fabrics that utilize shape memory alloy fiber – a nickel-titanium alloy – which has a temperature-dependent material stiffness.” When body heat or an external force warm the fabric, the material stiffness changes and the fabric changes its shape. “Through our fabric design process – designing the loop geometry and the knit pattern – we can predict the shape change and accomplish fabric conformity to the complex topography of the human body,” said Eschen.
Changing shape dynamically
Clothing created from the textile can easily transform from loose to tight-fitting, even bending uniquely to conform to places on the body that have irregular shapes, such as the back of the knee. The team published a paper on its work in the journal Advanced Materials Technologies. The textile can be used to create compression garments that are initially loose fitting and easy to put on, but which could subsequently shrink to tightly squeeze those wearing them. However, this is just one of many uses of the material for next-generation clothing. “I believe [these garments] will be an integral part of our life, sensing physiological changes to provide comfort and support, as well as offering haptic feedback to communicate while maintaining a low profile and looking/feeling like traditional fabrics,” said Eschen. The researchers plan to continue their work to integrate the textiles into full-sized garments, as well as to better understand on a holistic level how the materials work to better tailor and improve their performance. “Predicting the lifetime performance of these fabrics will also be an important next step toward their realization in products,” said Eschen. Elizabeth Montalbano is a freelance writer who has written about technology and culture for more than 20 years. She has lived and worked as a professional journalist in Phoenix, San Francisco and New York City.
Source: Design News
China’s chief trade negotiator indicated he was “cautiously optimistic” about reaching a phase one deal with the U.S., as two titans of American diplomacy in Asia warned of the dangers of escalating the tariff war. Vice Premier Liu He made the comments in a speech in Beijing on Wednesday ahead of the Bloomberg New Economy Forum, according to people who attended the dinner and asked not to be identified. He has also invited his U.S. counterpart, Robert Lighthizer, to travel to China for talks this month, but the invitation hasn’t yet been accepted, people familiar with the matter said. Speaking at the Forum on Thursday, former U.S. Secretary of State Henry Kissinger said America and China were in the “foothills of a Cold War,” and warned that the conflict could be worse than World War I if left to run unconstrained. Later in the day, former Treasury Secretary Henry Paulson warned of the perils of decoupling the world’s two largest economies. President Donald Trump announced the phase one deal a month ago, markets have been whipsawed by comments from both sides, first indicating progress, and then the opposite. The latest potential hurdle came after Liu made his dinner-time comments, when the U.S. House voted 417-1 for legislation supporting Hong Kong protesters that has already been unanimously approved by the Senate. It could go to Trump as soon as Thursday and he plans to sign the bill, a person familiar with the matter said.
Source: Economic Times
