The government will set up a panel to provide necessary clearances needed by businesses within a time frame of three-months in a bid to attract foreign investment in MSMEs, Union Minister Nitin Gadkari said on Sunday. Addressing Chartered Accountants Association of India, the minister informed that a Joint Secretary level officer has already been appointed to look after the foreign investment in micro, small and medium enterprises (MSMEs). "We are going to formulate a committee where we will give all types of clearances within 3 months and at the same time, there will be no red tape, full transparency, time bound decision making process, qualitative approach and no corruption," Gadkari said. The committee will be set up in coordination with states and the central government as stakeholders, and a policy will be framed in this regard, the minister added. Earlier in the day, addressing the Dalit Industries Chamber of Commerce of India, he said the government was making efforts towards decentralisation of the industry. "There is a centralisation of industry in areas like Mumbai, Noida, Gurugram, Bengaluru, Chennai. We need to diversify this and that is the need of the hour," Gadkari said. He said the government was formulating a policy on how investment can be made more attractive in backward and tribal areas. Gadkari said that he was willing for a leather cluster to be set up on the Delhi-Mumbai highway. "We will also give plots and residential accommodation to people residing in Dharavi slums, create a Smart City with airport, port and station connectivity," he said, and asked leather industry representatives to take up the initiative with the help of the Maharashtra government. He also urged people to move out of Dharavi, observing that the situation there was grim. Gadkari suggested the leather industry to prepare a plan for the proposed cluster on the Delhi-Mumbai highway. The minister said he will also talk to the Maharashtra government in this regard. The cluster will provide a good alternative to people to shift out of Dharavi, he added.
Source: Economic Times
The Reserve Bank of India (RBI) on Saturday held two separate meetings with heads of several public and private banks over video conferencing to review the current economic situation, the regulator said in a statement on its website. Issues relating to "credit flows to different sectors of the economy, including liquidity to non-banking finance companies (NBFCs), housing finance companies (HFCs), mutual funds, etc, post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs; Implementation of three months moratorium on repayment of loan instalments announced by the RBI; Monitoring of overseas branches of banks in view of the slowdown in economies across the globe; Stability of the financial sector" were discussed during the meeting, RBI said in its statement. CNBC-TV18 spoke to several banks present in the meeting about the discussions that took place today. With the central government announcing an extension of the nationwide lockdown, and businesses facing turbulence, banks have requested RBI to permit them to grant another three months of moratorium relief to their borrowers, said three banks present in the meeting today. In addition, the people quoted above said, banks are also seeking the regulator’s nod for a one-time restructuring of loans across segments, without downgrading the asset classification to a non-performing asset. Currently, RBI norms do not permit restructuring of a loan account without first categorising it as a non-performing asset and making the necessary higher provisions. “RBI said it is looking into the issue of an extension of the moratorium, but restructuring is one word RBI is not very comfortable with because we all know this scheme has been exploited by banks in the past,” said one of the bankers present in this meet. “We will go by the spirit of the June 7 circular (on resolution of stressed assets), but we need a few changes. We should be permitted to restructure with the existing promoter,” added another banker who was also part of the meeting. He said that finding buyers for stressed assets in this environment may result in value destruction, and therefore restructuring with existing promoters was the only solution to the current problem. “We are okay if RBI puts in strict terms for restructuring, we will abide by them, but they must allow restructuring of loans,” said the head of a large public bank, citing recent examples of delays in resolution due to the lockdown. On the much-debated issue of moratorium relief for NBFCs, RBI made it very clear in today’s meeting that banks would have to take the call on extending this relief on a case to case basis, as per their own board approved policies. CNBC-TV18 had earlier reported that the Indian Banks Association held a meeting over the issue but banks could not reach a consensus on the matter. With the largest lender, State Bank of India, taking the stance to not extend the benefit to NBFCs, many banks were in a flux, and had now decided to present their case to RBI. Now, even as the banks remain divided on the issue of allowing NBFCs the benefit of a three month moratorium, RBI has put the ball bank in the banks’ court, and told them that the regulator will not prescribe rules for how banks take these commercial decisions. In the past few weeks when RBI announced liquidity lines for support to NBFCs, MFI and mutual funds, banks showed a very poor response, barely coming forward to borrow from RBI’s window. Banks have been parking large sums of money over Rs 7- 7.5 lakh crore with RBI instead of utilising funds for lending, and their risk aversion in the current environment has meant that RBI’s TLTRO 2.0, or the Special Liquidity Facility for Mutual Funds did not achieve the desired objective. “We have given the feedback to RBI that we do not want more liquidity,” said one of the bankers. Instead, what banks have asked for is an expansion in the scope of the TLTRO 2.0. “Small NBFCs and MFIs don’t always use the bond route, it is the large ones that typically use this route to raise money, and we believe the direct loan route is better suited for these smaller companies,” explained a banker, adding that banks have asked RBI to allow direct lending via TLTRO 2.0 funds with the same regulatory benefits- similar to tweaks made by RBI in the scheme for mutual funds. Currently, TLTRO 2.0 funds can only be used by banks to invest in investment grade bonds issued by MFIs and NBFCs, but not for direct lending. RBI also sought feedback from banks on their preparedness for lending once the economy reopens. “We think the green and orange zones may see some activity starting May 4 and there may be some credit requirements there which banks are fully prepared to meet,” said a banking executive.
Source: CNBC TV 18
Several meetings have taken place with stakeholders, including industry chambers, to identify those sectors which have the potential to become global winners and make India a strong manufacturing hub. The Commerce and Industry Ministry is working to identify certain key sectors — like capital goods, leather and chemicals — with a view to establish India as manufacturing hub, according to sources. Several meetings have taken place with stakeholders, including industry chambers, to identify those sectors which have the potential to become global winners and make India a strong manufacturing hub, the sources said. “There are 12 champion sectors which can be looked upon. These include modular furniture, toys, food processing like ready-to-eat food, agro-chemicals, textiles like man-made fibres, air conditioners, capital goods, pharma and auto components,” one of the sources said. Groups and sub-groups have been constituted on the matter by engaging representatives from industry chambers like CII and Assocham. The core group would identify specific implementable policy based on issues like technological capability, employment potential, and global as well as domestic demand, they added. Commerce and Industry Minister Piyush Goyal has recently stated that in the post-Covid era, there is going to a be perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade. He has said that the Ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the exports purpose. Promoting manufacturing will help in creating more jobs and pushing India’s dwindling exports. Manufacturing sector contributes about 15 per cent in the country’s economy and the government is aiming to increase it significantly. The output of eight core infrastructure industries shrank by a record 6.5 per cent in March due to significant dip in production of crude oil, natural gas, fertiliser, steel, cement and electricity amid the coronavirus lockdown. Exports too contracted by a record 34.6 per cent in March on account of the lockdown due to Covid-19 outbreak.
Source: Telangana Today
Additional duties imposed recently by Turkey will adversely affect India's exports of textiles to that nation, according to The Cotton Textiles Export Promotion Council (TEXPROCIL). The new duties are applicable on shipments effected from April 20, 2020 and will be valid till September 30, 2020. This further aggravates the problem for textile exporters. Vide a notification issued on April 20, 2020, Turkey has imposed additional duties on a wide range of products, which includes 'Textiles & Clothing' products. Additional duties of 8 to 12 per cent on cotton yarn, 25 per cent on made-ups, and 35 per cent on apparel has been imposed. “The additional duties imposed by Turkey will adversely affect exports of cotton yarn and fabrics to Turkey,” said TEXPROCIL chairman KV Srinivasan. He pointed out that there was already an additional duty of 20 per cent imposed on fabrics in 2011 and this has now been increased to 25 per cent. Indian textile and apparel exporters are already facing unprecedented challenges on account of COVID-19 and are reeling under the combined impact of closure of production facilities due to lockdown on the one hand and cancellation of export orders on a large scale and non-receipt of payments against shipments already made on the other hand. With huge disruptions caused in the main export markets of the US and EU due to COVID-19, the additional duties imposed by Turkey has further aggravated the problems for textiles exporters, according to Srinivasan. “In these crisis times, countries should not create additional tariff barriers for commonly traded commercial products but enable normal development of trading activities,” said Srinivasan in a press release. He urged the Indian government to take up this matter immediately with the Turkish government so that textile products exported from India to Turkey are exempted from the additional duties. He also appealed to the government to include cotton yarn under the MEIS since Turkey is an important market for this product.
Source: Fibre2fashion
The internal projections of 2-3% are based on the Finance Ministry's current assessment of the economic impact of the nationwide lockdown, which is in its sixth week. The Centre is yet to announce its new economic growth and budgetary estimates for 2020-21 (FY21) in light of the Covid-19 pandemic and the resultant lockdowns. But the Finance Ministry is internally projecting FY21 GDP growth to be around 2-3 per cent, down from the 6-6.5 per cent predicted in the 2019-20 Economic Survey, Business Standard has learnt. The new projections were said to be given by Chief Economic Advisor Krishnamurthy Subramanian in a presentation he made to the 15th Finance Commission’s advisory council. The council, comprising Finance Commission members, ...
Source: Business Standard
The CBIC has also instructed field formations to make special efforts to dispose of all pending refund and drawback claims through a "special refund and drawback disposal drive" The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for conduct of personal hearings through videoconferencing by various authorities, in respect of any proceedings under the Customs, Central Excise and Service Tax laws. The guidelines include consent of the parties, either as appellant or respondent, communication of the date and time of personal hearing to the parties concerned, filing authorisation letter along with identity proof and contact details, marinating appropriate dress code and decorum, and videoconferencing through available applications or other ...
Source: Business Stanadard
In a series of tweets to Union Minister for Commerce and Industry Piyush Goyal, he proposed several measures that the Union government may consider to reboot and energise Indian economy to attract investments in the post-COVID scenario. IT and Industries Minister KT Rama Rao on Friday urged the Centre to constitute an empowered strategy group to identify and follow up on investment opportunities. In a series of tweets to Union Minister for Commerce and Industry Piyush Goyal, he proposed several measures that the Union government may consider to reboot and energise Indian economy to attract investments in the post-COVID scenario. Rama Rao said the empowered strategy group should comprise representatives from the Central and State governments besides industry leaders, bankers, economists and policy experts. He pitched for a coordinated strategy to revitalise the economy on par with the combat against novel Coronavirus. “India has a great opportunity, let’s grab it aggressively,” he said. The Industries Minister stressed for bold and essential reforms at the earliest including imbibing all best practices in Ease of Doing Business (EoDB) to propel India into top 20 in the world rankings. He proposed for updating old labour laws and brankruptacy laws apart from providing a guarantee and honour consistency in the State policies to investors. He emphasised the need to focus on creating world-class industrial infrastructure in a mission mode over the next one year which includes large self-contained industrial parks and corridors, besides developing world-class ITIs and polytechnics (at least two-four for every State). “Capacity building in Infra and skills is vital,” he said. Further, Rama Rao wanted the Centre to aggressively improve export competitiveness in priority sectors like pharma, aerospace, textiles, leather, IT and food processing. To achieve export competitiveness, he suggested certain measures including active scouting of markets, creating better deal than offers by competing nations, soft loans for procuring quality machinery, international training of staff, and attractive incentives on exports. The Minister also requested the Centre to initiate measures to bailout micro, small and medium enterprises (MSMEs). He suggested for direct financial assistance for MSMEs in worst affected sectors. He proposed for easy and very soft credit for others, deferment of dues, and priority to MSMEs in government orders among other measures. Rama Rao reiterated the need to scale up efforts to compete for opportunities in manufacturing sector and strongly felt that economies of scale will help the nation giving a competitive edge. He wanted the Union government to promote mega industrial parks like Hyderabad Pharma City and Kakatiya Mega Textile park as projects of national importance.
Source: Telangana Today
India and Vietnam are witnessing deepening ties in recent times. On 10 February 2020, officers from the Vietnam People’s Army (VPA) and the Indian Armed Forces gathered for an activity in Vietnam’s capital, Hanoi, for an activity aimed at strengthening friendly ties between the two nations. The motive of this event was to enhance a mutual understanding and trust among the armies, which would help in strengthening the Comprehensive Strategic Partnership between India and Vietnam and pave way for further engagements in the Indo-Pacific. Another motive of the event was to actively promote the Joint Vision Statement between India and Vietnam for defense cooperation (2015-2020) and work on the agreements which were reached on by the respective defense ministers for collaborations among young officers. The countries aimed to enhance experience-sharing in the armed forces, exchange military art, devise policies for soldiers and martyrs, and engage in UN Peacekeeping. India and Vietnam have built a firm foundation of diplomatic ties on close cultural, historical and civilizational links, which are also marked by mutual trust and understanding. India expressed its determination to maintain and promote cooperation between the countries, their armed forces and their young officers. India also pledged that the young Indian officers would support education and training to raise the capacity of the VPA in various fields. Vietnamese Vice President Dang Thi Ngoc Thinh met the Indian Vice President Venkaiah Naidu on 12 February 2020 and emphasized on the importance of the long-standing friendship between the two countries. They also spoke about bilateral relations and maintaining regular exchanges in the political, defense, economic and security sectors. India and Vietnam have built a firm foundation of diplomatic ties on close cultural, historical and civilizational links, which are also marked by mutual trust and understanding. In the economic and trade ties, India and Vietnam have agreed to work on a two-way trade target of USD 15 billion in 2020. They further deliberated on the specific measures to be taken in bilateral trade cooperation and assigned relevant ministries and departments to remove the technical problems being faced both sides. Vietnam has been facing severe issues because of the closing down of factories in China, which has halted the supply chains for the country. New Delhi and Hanoi aimed to launch a direct air route between the two capitals to facilitate trade activities and tourism. They aimed to strengthen the coordination with one another within regional and international forums, and promote peace and stability in the East Sea while emphasizing upon international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS). Vice President Thinh also thanked the Indian Government for supporting Vietnam in the past years, especially when Vietnam assumed the position of the ASEAN Chair in 2020 and a non-permanent member of the UNSC for the year 2020-2021. India and Vietnam have a major partnership potential in the field of commodity trade. They can exchange the commodities that are the strengths of their respective markets, and this would help the comprehensive strategic partnership and their large purchasing powers. The Deputy Ministers of Industry and Trade of both countries aimed at discussing strategies on how to bolster bilateral trade through a working session. A roundtable meeting was also held between the Vietnamese Minister Dung and many Indian businesses like Essar, HCL and Mahindra, on the invitation of the National Institution for Transforming India (NITI Aayog). There was another working session with leaders of the Ministry of Commerce and Industry, Confederation of Indian Industry (CII), and individuals from Indian tech giants like Nasscom and Wipro. All these meetings aimed to increase the trade outputs and overall investments in the two-way trade policy between India and Vietnam, which would ultimately help in skill development and job creation of the citizens. The strategic and dynamic relationship with Hanoi is a major pillar of strength for India’s Indo-Pacific strategy, as Vietnam has been building and renewing its relations with the United States, and has been playing an active part in the US Indo-Pacific strategy, which is in line with India’s version. Vietnam is a hub of high-quality and competitive products like agro-fishery, specializing in basa fish and fresh fruits like dragon fruit, lychee, longan and rambutan, which paved the way for business opportunities with Indian businesses and consumers. They have been facing difficulties in exporting these products because of the outbreak of the COVID-19. Vietnam has developed a garment-textile industry and has asked India for assistance in this field in the wake of COVID-19, as China has suspended its manufacturing operations. Vietnam has been facing severe issues because of the closing down of factories in China, which has halted the supply chains for the country. This is a major jolt to the economy of Vietnam. Therefore, India is now being preferred by Japan and South Korea as their new manufacturing hub, the country should also be able to garner support from Vietnam and help its industries. If Vietnam wants, it can also prefer India as a destination for its manufacturing investments, which would in-turn boost their two-way trade process in the post-COVID-19 times. There is also a potential for both the countries to work towards building low-cost goods, healthcare, artificial intelligence, agricultural food processing, and combined research in Science and Technology. India has agreed to boost bilateral trade with Vietnam and has also agreed to work to promote trade activities and business exchanges especially in the year 2020, as it marks the 48th anniversary of their diplomatic ties. Vietnam, as the ASEAN Chair, hosted the Special ASEAN COVID-19 Conference and has done a phenomenal effort in fulfilling its duties as a responsible and inclusive Chair. India’s position in the international arena has reaffirmed its relations with Hanoi. The strategic and dynamic relationship with Hanoi is a major pillar of strength for India’s Indo-Pacific strategy, as Vietnam has been building and renewing its relations with the United States, and has been playing an active part in the US Indo-Pacific strategy, which is in line with India’s version. Hanoi has also been building and strengthening its relations with Japan and Australia, who are also US allies and members of the Quad. Vietnam’s newfound regional and international face is important for its relations with India, as both have common goals and common friends, and hopefully, a future filled with other such commonalities.
Source: English Khabarhub
The lockdown has brought economic activity to a grinding halt, CII said on Sunday, citing findings from its CEOs survey, which indicated that 65 per cent of the firms expect revenues to fall more than 40 per cent in April-June quarter. The survey results reveal that the country may experience a protracted slowdown in economic activity, as 45 per cent of the CEOs polled feel it will take over a year to achieve economic normalcy once the lockdown ends. The snap poll saw the participation of more than 300 CEOs, of which nearly two-thirds belonged to MSMEs. On the career and livelihoods front, more than half of the firms foresee job losses in their respective sectors after the lockdown. A significant share of respondents (45 per cent) expect 15 per cent to 30 per cent cut in jobs. However, allaying some concerns, nearly two-thirds of the respondents reported that they have not experienced a salary/ wage cut in their firms so far. The country-wide lockdown imposed on March 25, while necessary, has had deep ramifications on economic activity, CII said. For the full financial year 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 per cent to 40 per cent. While three out of four firms have identified that a 'complete shutdown of operations' was a major constraint being faced by business, more than half of them have also indicated 'lack of demand for products' as a hindrance to business activity. "While the lockdown was necessary to mitigate the coronavirus impact on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides calibrated exit from lockdown," CII Director General Chandrajit Banerjee said. Additionally, it is pertinent to note that according to a large proportion of the firms, a recovery in domestic demand, for their product or services, may precede the recovery in foreign demand for the same.
Source: Economic Times
To attract investors, the govt needs to address their pain points; that requires the PM to take some basic decisions. Going by the series of meetings prime minister Modi held last week, it would appear he is quite worried—and rightly so—about how his government is putting off investors. Given there is yet another China opportunity, as foreign investors there are looking to leave, the anxiety is understandable. It is to be hoped that, this time around, Modi’s ministers will act upon what he wants, but some basic rules will help: Keep It Simple, Stupid (KISS). And, since the prime minister is probably meeting as many doctors as economists in this coronavirus season, he probably recalls the part of the Hippocratic oath that says “first, do no harm”. The ministry of power, to cite a recent example of government policies that don’t quite address the issue, has just come up with an elaborate new plan to bring state electricity boards (SEBs) on track after the last bailout (Uday) failed—expectedly, given it had more carrots than sticks. Some parts of the old policy that fostered competition—like open access and separation of ‘carriage and content’—have inexplicably been watered down or dropped, with there being a new focus on the franchisee model and the state paying subsidies on time, as well as tariffs that reflect costs. Given the complete failure to fix SEBs for decades despite a series of bailouts, it is not clear this one will work, but why not opt for a simpler solution? Empower RBI to automatically deduct SEB dues from the bank account in which the Centre deposits the states’ share of taxes. With their revenues at stake, states will automatically pay subsidies on time, ensure tariffs are raised, cut losses, and find other ways to raise efficiency. Indeed, a good example of how government policies are so convoluted is the spate of announcements and funds set up to help beleaguered real estate firms/NBFCs etc over the past year or two. If Modi asks, he will find the funds have achieved little because there were so many caveats attached, in which case, why even announce a relief package? While this newspaper routinely gives examples of how performing investors have been repeatedly hit by government policy, the most recent example of this is the mindless rule—under the Disaster Management Act—that prevents industry from laying off workers or cutting their salary. When industry has no turnover, how can it survive with such a stipulation? And, it is to the Supreme Court’s discredit that it has not even stayed such a draconian and illogical order. Equally draconian was the order put out by various states that an FIR would be filed against the CEO of a firm if there was any Covid-positive employee! In a generally anti-industry atmosphere, it is easy for such policies to get through. If nearly 75 years after independence, the PM doesn’t realise that India’s rigid labour laws have pushed industry away to China, Vietnam, and Bangladesh, there is little point in him asking his ministers to pro-actively woo industry. And, how can he hope to boost the coal and mining sector when Indian royalties and other levies are so high compared to other countries, to say nothing of the never-ending environment and other clearances?
Instead of constantly touting, as he does, India’s progress in the meaningless Ease Of Doing Business rankings, Modi needs to promise not to impose sapping price controls. Just see how much of Indian pharma production is exported as a result, and how this has prevented agriculture exports from realising their potential. If something as basic as a telecom package hasn’t been finalised despite the sector being on its knees for so long—and with such clear evidence of government policy being rapacious—it is really ambitious to expect India will be able to woo the bulk of the investment seeking to leave China.
Source: Financial Express
Shri Arvind Kumar Sharma (IAS) today assumed charge as Secretary, Ministry of Micro, Small and Medium Enterprises. Starting the work on war footing, he held a held important meetings with senior officers to review the work of the Ministry and discussed pressing issues especially in the light of the impact of COVID -19 pandemic. Shri Sharma has emphasized that MSME sector is very crucial for the society and the economy. Laying out his priorities, he has emphasized that after we have dealt with the urgent situation, we need to work on creating Global Champion companies from MSMEsPrior to this appointment, Shri Sharma was serving as Additional Secretary, Prime Minister's Office (PMO). He is 1988 batch IAS officer of Gujarat cadre. Shri Sharma has also worked in the Government of Gujarat at various positions including field and policy level and has extensive experience of handling the portfolios of regulatory and developmental administration, disaster management, Corporate Management, industrial/investment promotion and infrastructure development.
Source: PIB
Apparel industries that want to take up design and sample preparation in Tiruppur town, can do so after getting permission from the District Collector and operating with 30 % workers, an official press release said. In the release, Tiruppur Collector K. Vijayakarthikeyan said that industries in rural and town panchayats could operate with 50 % workforce.
Town panchayats
Those in SEZs, export oriented units, industrial townships, and industrial estates in rural and town panchayats could operate with 50 % workers. For the exporting units in the town, the Collector would inspect and permit them to function with 50 % workers.
Spinning mills
Spinning mills and hardware manufacturers in rural areas could operate in shifts with 50 % workers and after following all the mandatory precautionary measures. MSMEs in rural areas could re-start operations if they followed the precautionary measures. These permissions would not apply to industries in containment areas. Industries that need permission and passes could apply online through https://tnepass.tnega.org, the release added. In Coimbatore, industry sources said Municipal Administration Minister SP Velumani would hold discussions on Monday with representatives of 15 industrial associations.
Source: The Hindu
It is one of the traditional sales hubs of local fabrics in Bangladesh, an hour's drive from the capital. Several indigenous fabrics of the market, including gamchha and lungi, are famous across the country and exported as well. Thousands of traders and clothing workers depend on the market for their livelihoods. Daily turnover during the Eid festival usually stands at Tk 10 billion, but the traders and workers are worried about the sales this year as they have already suffered a big blow. The workers have lost their livelihoods while the traders are also facing a crisis to repay the loans they have taken from banks. Usually, the sales witness a robust growth a month or 15 days before the Eid, but more than 10 days of Ramadan has already passed. Trading continued after the nationwide shutdown was imposed in March, but the market was totally closed when the authorities put Narsingdi on complete lockdown on Apr 9 following a surge in coronavirus cases. It resumed operations on Sunday following an application by Baburhat Traders’ Association and Narsingdi Chamber of Commerce and Industry after the reopening of apparel factories in Bangladesh, the district’s Deputy Commissioner Syeda Farhana Kawnine said. The traders have been told to maintain physical distancing and trade online while no more than three customers will be allowed in a shop at a time. But Narsingdi Chamber of Commerce and Industry president Ali Hossain Shisir said most of the traders do not have the skills to run shops online. “We will shut the market down again if the traders fail to follow the rules,” the DC said. Law enforcers, led by an executive magistrate, will monitor the market, she said.
Source: BD News
Scottish textiles business Don & Low is to manufacture filters used in the production of the highest quality face masks recommended by the World Health Organisation and NHS. The Forfar plant has received funding from Scottish Enterprise for equipment to make fabric for the FFP3 face masks. These are the top grade of respirator coverings to protect against virus and bacterial infection when the contagion is spread through coughing and sneezing (such as with the coronavirus). They are also often used by healthcare professionals when handling hazardous p The Scottish Government, via Scottish Enterprise, has agreed to provide the company with up to £3.6 million of financial support towards the £4.5m purchase, import and installation of the equipment. Once the machine is operational, Don & Low will be one of a handful of companies in Europe capable of supplying the filter material used to make the respirator masks. Trade Minister Ivan McKee said: “COVID-19 isn’t going away any time soon, so while we have enough masks to protect our frontline health and social care workers now, we are also taking a long-term view to build PPE manufacturing capability in Scotland to meet future needs. “During these challenging times it’s encouraging to see so many Scottish businesses quickly diversify their product lines and invest in new equipment to help us deliver what is needed, when it’s needed.” Colin Johnson, director at Don & Low, said: “We are pleased to be supported in making this new investment that will allow us to use our existing expertise to address the shortages of these key materials during the COVID-19 pandemic and beyond.” Pharmaceutical chemicals as they can block both liquid and solid aerosols. Linda Hanna, managing director, Scottish Enterprise, added: “The unprecedented demand for face masks has highlighted the fragility of existing global supply chains. “Investing in this equipment alongside Don & Low will simultaneously boost domestic manufacturing and supply while creating export opportunities. “Most importantly, it means the highest-grade medical face masks will continue to be produced for those who need them most.”
Source: Daily Business Group
Without a local textile industry, apparel, and garment factories have to import the materials they need to make personal protective equipment (PPE) like medical gowns, and this is not necessarily sustainable, an official from an industry group said. A member of the board of trustees at the Philippine Exporters Confederation Inc. said the country needed to revive its local textile industry, which he said used to be one of the best in Asia 10 to 15 years ago. Now, it is the only country in Asia without its own textile industry, said Robert Young, Philexport trustee for the textiles sector. During a recent online forum, he said they received calls for help from factories that have run out of materials to produce PPE and masks. “We are willing but where are the fabrics? Where are the materials? We can’t get anything,” added Young, who is also the president of the Foreign Buyers Association of the Philippines (Fobap). “If we have factories nearby, or domestic, we can get supplies from these textile companies,” he said. The COVID-19 pandemic has shown to more people the structural inefficiencies that had persisted before the outbreak. The local clothing industry is no exception. While local garment factories are currently making PPE, there is still a gap in the supply chain equivalent to the size of an entire textile industry. For now, that gap is being filled by imports. “We cannot continue importing. We have to be self-reliant because we don’t know what will happen next,” Young said. He said there should be a serious study on the revival of the textile industry, which is important as it provides the basic human need for clothing.
Source: Inquirer
Pakistan’s exports may not suffer so badly, but moderately as textile manufacturers – the country’s single largest export industry – have reported receipt of new buying orders from different countries after the world slowly softened lockdown imposed to contain the coronavirus pandemic. “A significant development has taken place (in the textile export sector of Pakistan). We have received new export orders for those textile products which are mainly used in hospitals like white bed-sheets, white gowns and white t-shirts,” All Pakistan Textile Mills Association (Aptma) former vice-chairman Asif Inam confirmed to The Express Tribune. Aptma chairman Gohar Ejaz has briefed on the developed the other day, he said. “Interloop, the Faisalabad-based textile industry which manufacturer mainly hosiery products like socks for the global brand Adidas, has resumed production,” he replied. “Things are getting normal as Europe – a major buyer of Pakistan’s textile goods – is gradually softening lockdown,” he added. Pakistan has received the world buying orders in the middle of the ongoing global health crisis as “we manufacture and export low-cost products in all categories of textiles like readymade garments, bed-sheets and hosiery instead exporting high-end branded products,” he said. The orders are a mix of new ones and the ones which were put on hold and got temporarily suspended after the world imposed lockdown to contain the virus. “Many world buyers, who had put the previously placed orders on hold, have now opted to take delivery from Pakistan,” he said. The share of textiles in total exports stood at 60% ($10.41 billion) of the total exports at $17.45 billion in the first nine-months (Jul-March) of the current fiscal year ending June 30, 2020, according to the Pakistan Bureau of Statistics (PBS). In the month of March alone, the exports, however, slipped 4.46% to $1.03 billion compared to $1.08 billion in the same month of the last year. Topline Research said it was previously expecting exports of goods to clock-in at around $26 billion in the current year FY20, which “we believe is likely to reach around $22.3 billion – resulting in a loss of $3.7 billion during Mar-Jun 2020.” The receipt of the new export orders much earlier than the expectation may, however, help in booking lower export losses than the one initially estimated following the outbreak of the virus in the country. Pakistan’s textile industries had received additional export orders and were running over the installed capacity following the outbreak of the virus in China – the second world largest economy – in end of December 2019.
However, the virus spread fast around the global and emerged in Pakistan in late March. “Some 30% textile industries, including value-added ones like readymade garments – have resumed production in Pakistan after the government allowed export industries to return to work under the strategy to crate balance while dealing with economic and health crises,” Inam said. It is, however, very difficult to estimate the value of the new export orders and those for which the world buyers have started taking deliveries, he said. He said Pakistan did not get impact so badly from the spread of the virus like Italy, Spain, the UK and the US did. “The situation may help Pakistan return to work earlier than the estimated timelines. It, however, remained uncertain when the crisis would completely get over around the globe,” he said. Spain, Italy and other countries around the world are softening the lockdown. The situation would help to attract exports, he said.
Source: The Express Tribune
As COVID-19 continues to batter the Indonesian economy, 70 percent of textile and textile product (TPT) companies face permanent closure as a result of plunging domestic and export demand, an industry group has warned. At the moment, 80 percent of textile companies have halted operations temporarily while facing cash flow issues, so financial support from the government is urgently required according to the Indonesian Filament and Fiber Producers Association (APSyFI). “We have cash flow difficulties because even though we have no income, we still have to pay penalties to the state electricity and gas companies while also paying our workers’ social security fees,” APSyFI secretary-general Redma Gita Warawasta said in a press release on Wednesday. The association warned that massive business closures could cause a spike in unemployment, as around 1.8 million TPT industry workers are already furloughed or laid off because of the pandemic. According to the Industry Ministry’s latest estimate, the TPT industry employs around 135,000 workers annually, making up 22.5 percent of the total 600,000 workers in the industrial sector. Redma said APSyFI and the Indonesian Textile Association (API) had conveyed their request for relaxation policies from the government but without any significant development. One of the associations’ requests includes penalty fee waivers from state electricity firm PLN and state gas company PT PGN for textile companies with electricity and gas consumption below the minimum threshold. “Our request for penalty fee waivers is reasonable because the government has declared [COVID-19 pandemic] a national disaster. But in reality, neither PLN nor PGN regard the pandemic as a national disaster and they are still imposing penalty fees,” the APSyFI statement reads. The association also complained about the financial sector not providing credit relaxations to textile companies, even though the Financial Services Authority (OJK) has issued regulation No.11/2020 on credit restructuring for companies impacted by the pandemic. “There could be a spike in nonperforming loans from the TPT industry if the situation continues,” Redma said. Meanwhile, Coordinating Economic Minister Airlangga Hartarto said on Thursday that 15,000 manufacturing companies were still operating at present out of a total of 40,000 in normal times. Nearly 4.7 million workers in the manufacturing sector are still working out of the usual 17 million in the sector, which contributes around 20 percent of the country’s GDP, the minister added. “We hope companies will be back in operation when the situation returns to normal,” Airlangga told an online briefing on Thursday, referring to the COVID-19 pandemic. Many businesses in the country have temporarily shut down or are functioning at minimum capacity to comply with the government’s stay-at-home order to contain the fast-spreading coronavirus, which has infected over 10,800 people nationwide. As a result, the country’s Purchasing Managers’ Index, a monthly survey of trends in the manufacturing sector, recorded a contraction to 45.3 from 51.9 between February and March, the steepest decline since the survey began in 2011.
Source: The Jakarta Post
