In a move to boost use of synthetic fibre, the textile industry has sought excise duty reduction on all manmade fibre and filament to 6 per cent from the existing 12 per cent. In a pre-budget memorandum, the Confederation of Indian Textile Industry has suggested that the government should reduce the excise duty and to cover the revenue loss, it should introduce two per cent mandatory excise duty on all value added products that are manmade fibre-based. Globally, manmade fibre accounts for 70 per cent of the fibre consumption. However, in India, it is less than 30 per cent.
The duty reduction on raw materials such as PTA (purified terephthalic acid) and MEG (mono ethylene glycol) should follow as a logical sequence to avoid an inverted duty structure. According to the memorandum, in India, the per capita consumption of manmade fibre is nearly three kg as against the world per capita consumption of 8 kg.Reduction in excise duty in manmade fibre will lead to increase in demand.
The excise duty on synthetic fibre should be six per cent. The customs duty on PTA and MEG should be brought down to zero per cent and the customs duty on polyester fibre and filament should be increased to 10 per cent, according to the memorandum.
SOURCE: The Hindu
According to Mysuru-Kodagu Member of Parliament Pratap Simha, land has been identified for the proposed cluster at Srirampura, on the outskirts of the city. Centre has released Rs 28 crore for a textile mega-cluster in Mysuru. The cluster for textiles, mooted to be set up in Mysuru, was approved in the 2014-15 Union Budget. Land has been identified for the proposed cluster at Srirampura, on the outskirts of the city, according to the Mysuru-Kodagu MP Pratap Simha.
In this connection, Union Textiles Minister Santosh Kumar Gangwar is expected to visit Mysuru on February 8. During his visit, he will inspect the land and hold discussions with the officials concerned under the chairmanship of Simha on setting up the cluster, he said in a release. Finance Minister Arun Jaitley had announced setting up of eight textile mega-clusters at Varanasi, Bareily, Lucknow, Surat, Kutch, Bhagalpur, Mysuru and one in Tamil Nadu, and had allocated Rs 200 crore for the purpose to give a boost to the textile sector.
Mysuru is already famous for its silk products and was also well-known for its now defunct textile mills, the Sri Krishnarajendra Textile Mills, set up during the reign of the Maharajas that gave employment to a large number of people. Cotton is cultivated in the region, including in the H D Kote taluka. The growers sell their produce to the mills in the neighbouring Tamil Nadu. A labour-intensive industry, textile cluster in Mysuru is expected to give a boost to employment, besides benefitting cotton growers in the region.
Besides, it will add to the three clusters already proposed for printing, packaging and general engineering. Hence, the textile cluster is expected to boost cluster growth in Mysuru which had pioneered industrial development by establishing industries in areas like sandalwood oil and silk that have given a brand image to Mysuru right from the days of Mysuru rulers. Textile sector contributes about 14 per cent to industrial production, 4 per cent to the GDP and 11 per cent to the country’s export earnings. It is the second largest provider of employment after agriculture. The eight textile mega-clusters are aimed at increasing textile production and exports.
SOURCE: The Business Standard
Prime Minister Narendra Modi’s decision to choose Varanasi as his constituency in the 2014 general elections has rekindled the hope that it will lead to the revival of the city’s fabled craft, the Benaras Brocades. These patterned gold and silver silks have been woven in the city since ancient times, but unfortunately there has been a sharp decline in the demand for this fabric in recent years. This is a sad situation as these saris are associated with the erstwhile royal courts and religious traditions, and represent the exotic in Indian couture.
Several government bodies have been set up to save this heritage. But they are directionless when it comes to dealing with the fast-changing world of design and fashion. Isn’t it ironic that while handloom fabrics are considered chic, sophisticated, edgy and aspirational in the world of fashion, they for some odd reason don’t get due respect in this country? Far from being showcased, they are shunted to the dusty backrooms of government emporia. All economic packages are aimed at getting subsidies for handlooms under the assumption that the fabric is used largely by the poor. This is surefire way of ensuring its irrelevance. The handlooms of Benaras and khadi are among India’s greatest sartorial contributions to the world. They are a rarity in the world of textiles and need to be looked at with a fresh perspective.
The Benaras Brocade could put the country on the textile map of the world and can also become a tourist attraction. Look at how Thailand has carved out an identity for itself in textiles with the simple dupion silk, which is now sold as Thai silk around the world with enormous success. In India, we have an amazing variety of fabrics and with these we can produce a hundred Thailand-like stories projecting India and its weavers in the highly competitive world of fashion fabrics. In addition to this, we are organic in production. This unique combination of handspun fabrics and the inherited skills of our weavers is our USP and give us an edge in a mechanised world.
China is doing its best to replicate what we make by hand in their mechanised units and selling them both to India and the rest of the international fashion community. China is managing to get away with this because though there is a huge market for handcrafted goods, India has not been able to take advantage of this and improve the lot of our weavers. I feel India could also do much more with Ahimsa silk. We could make a splash in the international arena with this incredible fabric produced from yarn in the Terai regions. They produce the rarest of tussar and moga silks. The other product that we should try to promote is pashmina. The wool comes from the Pashmina goat, a special breed indigenous to the Himalayas. Pashmina shawls are also hand-spun and are synonymous around the world for their superb quality.
The textiles sector is the largest provider of employment in India after agriculture. It is a vertically integrated industry and produces everything from raw materials to finished products. Handloom production is uniquely environment-friendly, being a source of employment generation for unskilled rural workers, especially women, who are traditionally employed in hand-spinning. We just cannot be blind to the immense potential of one of the country’s richest resources.
India has a plethora of institutions like the Khadi Gram Udyog set up specifically to cater to the needs of this sector. But the Udyog, which has a great network of outlets across the country, is in a comatose state and is doing the bare minimum to promote the production of khadi. Often they have an inventory of spurious goods that are sold from their enviable retail addresses. Mind you, all this is being done at the taxpayers’ expense. The Weavers Service Centres, set up in the 1970s, are in a state of disarray and the handloom boards and other such organisations are only accountable to themselves. We have also managed to politicise our award schemes for master weavers.
As a new emerging economic power, India should be attracting investment in fashion and textiles. But for that we must encourage one of the most unique textiles the world has known. We have been leaders in this sector and still can hold the pole position in dyeing, printing and weaving. India has exported the most aspirational textiles to the world for thousands of years. Surely the time has come to review our heritage. We owe it to our future generations to nurture our fabrics and processes. We should place ourselves in a position where we are a cut above the rest of the world. This is not too difficult a proposition, considering the vast resources we have at hand.
SOURCE: The Hindustan Times
Fine Fit, company from Tirupur one of the most trusted solution providers to a host of brands in Europe and USA and have an emerging presence in other global markets has opened its production unit in a rented building (government building) at Padalur. The Collector has appealed to readymade garment companies from Coimbatore, Tirupur, Erode and Karur to utilise the opportunity and open their readymade garment production units in these buildings.
According to Tamil Selvan, district panchayat Secretary, the company is operating 100 to 150 sewing machines for preparing readymade garments in the rented building. A Common Facility Centre for the company is being constructed at a cost of Rs. 1.25 crore at Padalur. After completion of construction, 300 sewing machines will be operated to prepare readymade garments and employment will be given to 1,000 local persons. Seeing the performance of Fine Fit company, textile companies from Tirupur have shown interest in opening their readymade garment production units in the district.
SOURCE: YarnsandFibers
The 14th National Handloom Expo kicked off on Wednesday a platform for young designers to showcase their talents. The event was inaugurated by the Chief Minister Naveen Patnaik. In the inaugural ceremony, about 18 weavers were awarded for showing excellence in designing several handloom items.
Speaking on the occasion CM Patnaik said that, Odisha’s tradition in Handloom Weaving is centuries old. Each district of Odisha has its unique weaving style and special craftsmanship. The artistic tradition of tie and dye is spread from Bargarh and Sonepur in the North to Nuapatna and Cuttack in the East. The natural dyed fabric of Koraput, Habaspuri of Kalahandi, the Mayurbhanj Sarees, Dhotis and Scarves of Khurda, the ornate Tie and Dye of Boudh, Tasar of Gopalpur, Fakirpur and Sonepur – all these unique textile designs form a rich spectrum of colours, designs and artistic expressions. This time weavers from 16 States, Andhra Pradesh, West Bengal, Uttar Pradesh, Madhya Pradesh, Jharkhand, Chhattisgarh, Delhi, Tamil Nadu, Karnataka, Rajasthan, Haryana, Punjab, Odisha, Jammu and Kashmir, Maharashtra and Pondicherry, are participating in the expo.
Over 100 stalls displaying a wide range of handloom materials are put up at the event. Also, a pavilion on the theme of upcoming Nabakalebara at Puri has been created this year. Various cultural programmes and food joints have been set up for the visitors. Out of the stalls, 28 have been allotted to Odisha’s participants, said Handloom and Textile Director Debendra Prasad Das. The State Government has set a target of Rs.7 crore of sales to take place in the 14th National Handloom Expo- 2015.
The Government of Odisha is implementing a number of welfare measures for upliftment of artisans in handloom sector. Provision of housing-cum-work shed, insurance coverge for artisans, supply of solar lanterns and utility items, development of cluster under Chief Minister’s Special Package are some of the promotional measures taken up by the State Government for economic upliftment of artisans in the State. The expo is organised by the Textile and Handloom Department of Odisha and will continue till March 1 at the Exhibition Ground in Bhubaneswar.
SOURCE: YarnsandFibers
The government is likely to approve some new proposals for special economic zones (SEZs) and extend the approvals for old ones, when the Board of Approvals (BoA) on SEZs meets on February 20. This is expected to boost investments and production in these tax-free enclaves.
The 64th BoA was supposed to meet in November last year. The BoA is an empowered body under the ministry of commerce and industry to approve SEZ proposals, extend their validity and even cancel these projects. The BoA, chaired by Commerce Secretary Rajeev Kher, earlier met on September 18, 2014. Since then, no new proposals have been approved. On the contrary, the government cancelled 67 SEZs that had been formally approved.
In the previous meeting, as many as 14 SEZ developers, including GP Realtors and Navi Mumbai, had asked the government for more time to start their projects. Reliance Chairman Mukesh Ambani-led Navi Mumbai SEZ has asked for extension of the validity period of formal approval beyond October 24 for its information technology SEZ. It has already been granted four extensions.
SEZ activity in the country has slowed substantially, with the introduction of minimum alternate tax (MAT) and dividend distribution tax. It is expected that in the coming Budget, to be unveiled by finance minister Arun Jaitley on February 28, the rate of MAT might be reduced to 7.5 per cent from the 18.5 per cent at present. This was also indicated by Kher recently where he indicated that the issue of MAT would be addressed in the budget.
Last month, the government had relaxed a set of norms for the zones that allowed developers to carry out infrastructure-related work within the tax-free enclaves such as building of banks, hospitals, hotels, schools and colleges that can be even used by people residing outside, as well as by the workers and families staying within.
The total number of SEZs with formal approval came down to 491 in December from 558 in October due to cancellation of projects. Out of the 491 projects, 352 have been notified. A total of 196 SEZs are presently operational and are exporting.
SOURCE: The Business Standard
India has promised preferential market access for services suppliers from the poorest countries at the World Trade Organization (WTO)—an offer that has enhanced New Delhi’s image as a generous partner of the least developed countries (LDCs) in global trade. The Indian offer includes market access for short-term contractual services suppliers and independent professions (what is called Mode 4 supply of services in trade jargon) in sectors such as engineering services, integrated engineering services, computer and related services and management consulting services. The offer also includes access to project management services other than for construction, hotel and other lodging services, travel agency and tour operator services and a quota of 250 tourist guides in non-English foreign languages.
New Delhi has announced that it will waive the visa fee for applicants from these countries applying for Indian business or employment visas. High visa fee in industrialized countries is one of the biggest barriers for services suppliers from the poorest nations. At a high-level meeting convened by WTO on Thursday for implementing what is called the waiver for preferential treatment to services providers from these nations, India’s generous and substantive offer seemed several notches ahead of what industrialized countries announced to assist the poorest countries, several trade envoys said. As part of the Bali ministerial declaration, trade ministers had directed industrialized countries and developing countries to indicate what they are willing to offer to LDCs at a high-level meeting. “India made an excellent offer to provide substantial market access and also technical assistance to train our services suppliers in different sectors,” said the LDC coordinator, ambassador Christopher Onyanga Aparr of Uganda. Aparr said he was disappointed with offers from some industrialized countries, describing them as empty promises. “India made most creative statement to operationalize the LDC waiver by offering access in a range of sectors coupled with the promise to build the supply-side capacity-building,” an industrialized country official said on condition of anonymity. As part of technical assistance and capacity building to enable LDCs to supply quality services, India will train financial candidates from LDCs at the Reserve Bank of India and also “conduct specially designed course for around 1,000 LDC professional each year in areas such as Management Consulting, Technical Consulting, and Project Management”.
New Delhi will also accord priority to training LDC professionals and consultants in areas such as insurance services, promotion of micro, small and medium enterprises, agriculture and rural development sectors, and railway infrastructure services. India will assist LDCs to promote their trade and tourism exports along with creative industry services such as audio-visual co-production agreements. Besides India, China, Mexico, the European Union (EU), Canada, Australia, Norway, Japan and Switzerland, among others, made several offers in different sectors, particularly areas concerning short-term services providers, and technical assistance and capacity-building. The US, however, took a back seat by saying it would need time to learn from the high-level meeting before making any concrete offers, said participants at the meeting. “I’m encouraged by the overall positive response from the developed and developing countries to address the two issues—market access and capacity-building and technical assistance—for services providers in the least developed countries,” the chair for the council for trade in services, ambassador Choi Seokyoung, said. Ugandan trade minister Amelia Kyambadde said there are a “lot positive elements in the offers made by members and we need time to digest them”. She said the next step is how soon the best offers made by members will be operationalized. A tentative deadline of end-July has been agreed for enabling members to make notifications of the proposals they suggested at the meeting.
Among the industrialized countries, the EU said it would offer enhanced access to contractual services suppliers for providing independent services and graduate trainees. Brussels also promised that it would extend preferential access for services in the Economic Partnership Agreements to LDC countries. Canada said it would provide full market access in three-quarters of all services sectors to LDCs while Australia came up with specific proposals concerning short-term services providers, and capacity-building and technical assistance to train LDC services providers in computer and business services at Adelaide university.
SOURCE: The Live Mint
The government has charted a plan to ensure that India can grow at seven to eight per cent annually in the next decade, said Jayant Sinha (pictured), minister of state for finance. “Our aim is to put the economy on a sustainable, non-inflationary and high-growth trajectory. If we grow at around seven per cent a year, the size of our economy will double in the next 10 years. So, our $2-trillion economy will become $4 trillion,” Sinha said at the Mumbai Next MMR Transformation Conclave here on Friday.
For ease of doing business in India, he said, the government was looking at addressing a whole host of tax and regulatory issues in this Budget. “I can assure you that India’s tax and regulatory regime will be made simpler. Our intent is to make these the best in the world. The taxation regime will be simple, predictable and fair.”
Companies had listed taxation-related hurdles as one of the top barriers in the way of making India a global financial hub. Experts said to improve the pace of development, steps have to be taken to ensure capital coming into India can be deployed with convenience. The issue of taxation on permanent establishments has been settled to make the business environment more conducive, the minister said. “You can absolutely invest without generating any taxes. There has been a CBDT (Central Board of Direct Taxes) circular in this regard,” said Sinha.
A permanent establishment is a fixed place of doing business, through which a company or entity can carry out a business via a branch, representative office or a subsidiary entity. Typically, the local tax authorities assess corporate tax on deemed revenue arising in-country.
SOURCE: The Business Standard
A new toolkit from the Textile Futures Research Centre aims to support fashion designers, buyers and textile designers in defining the sustainable impact of garments, and moving towards a circular economy. The research centre has previously worked with a range of major clothing brands and retailers, including H&M, VF Corporation and Puma.
Each of the TED’s Ten strategies, such as design to reduce chemical impacts, include examples of how textile companies can implement it in order to improve their sustainability focus, as well as supporting research. The TEDS TEN manifesto aims to make the sustainable design process easier to navigate, and to inspire new textile innovations.
TED researchers previously developed new garment prototypes for apparel giant VF Corporation, and other clients have included H&M, Inditex Group, Puma, and Gucci Group. TED’s Ten is from the Textile Environmental Design (TED) research group at the Chelsea College of Art and Design, part of the University of London’s Textile Futures Research Centre. The team also offers a portfolio of workshops, product design and development, business model services, talks and consultancy, as well as individual ‘TED codes’ to companies, adapted to individual CSR, marketing, production and distribution departments.
SOURCE: The Eco Textile
The Nigerian textiles and garments industry if given the requisite attention can be one of the game changers for the nation’s export drive. Noting that the opportunities in the global market are huge this year which according to statistics, is expected to hit $850 billion. The Nigerian Export Promotion Council (NEPC) has tasked textile and apparel manufacturers to take advantage of business opportunities from the global market.
The NEPC designed a forum to engage in discourse that will assist both the council and the stakeholders to proffer strategies that will enhance the export of Nigerian textiles and apparel. The Managing Director, NEPC, Olusegun Awolowo at the forum stated that it is imperative for the Nigerian textile industry to brace up to take a market share in the global market as there is huge opportunities in the market.
The Managing Director, who was represented by the Acting Zonal Controller, NEPC Lagos, Mrs. Evelyn Obidike, at a stakeholders’ forum of garments textile and apparel said of recent, the present administration has launched the Nigeria cotton, textiles and garment policy to boost the sector, stressing that future global market for textiles and apparel is expected to expand drastically. It is going to be a challenging market, full of risks and unbelievable opportunities. Therefore it is important for the stakeholders to take cognizance of skills, competences and key trends to avoid hurdles.
The council has committed to provide assistance for the sector to thrive and increase export as Nigeria has the comparative advantage to increase export of Nigerian textiles and apparels. Awolowo added that the adoption of agreement in Textiles and clothing (ATC) by World Trade Organisation (WTO) in 1995 has removed quotas on textiles and clothing among WTO members which included Nigeria, stressing that it is a common knowledge that economically developed countries have imposed high tariffs and quantitative restrictions on export of textiles and clothing to their countries.
Despite this, developing countries such as Bangledesh, Honduras, Mexico, El Salvador, Thailand, Cambodia, Lesotho, Mauritius and Ethiopia are increasing export of textiles to these developed countries. Stakeholders at the end of the event, urged the council to play a more proactive approach in identifying more opportunities for the sector, as there is need to raise profile of the industry to tone with international global standards. The council’s effort are towards providing direct assistance to the sector. One of such interventions was the establishment of human capital development centre in Lagos, to enhance capacity of the players in the garment industry.
SOURCE: YarnsandFibers
India and Lebonan have joined hands in hosting the Surajkund Craft Mela 2015. Akram Shuhaib, Finance and Agriculture minister of Lebanon, said that his country has been selected as a partner country for the first time for which he was thankful to Haryana as well as to the Indian government. "This partnership in hosting the mela will go further and would lead to a strong bonding between the two countries. This would also enhance the possibilities in business and trade," said Akram Shuhaib, Finance and Agriculture minister of Lebanon.
He said that this strengthening of trade and business between the two countries would reflect in imports of olive oil, honey, wine and food products by India as these are the major products of Lebanon. The minister further said, "In the coming days wherever an opportunity is given, Lebanon would be more than happy to display the heritage, agriculture, customs and philosophy of the country." On the occasion, Aditya Dahiya, Administrator Mela welcomed the guests from Lebanon.
SOURCE: The Economic Times
Gap, adidas and H&M have been praised for their transparency in publicly announcing they are sourcing from Myanmar – and other brands which are already sourcing from the country are being encouraged to follow their progressive approach. "I encourage brands and retailers to keep coming and to transparently explain to the media that they want to buy garment products from Myanmar because they support fair and safe working conditions," said Jacob Clare from the EU-funded Smart Myanmar programme, which helped Myanmar Garment Manufacturers Association (MGMA) publish the country's first ever Code of Conduct which sets out responsible business practices for Myanmar's growing apparel industry. Around a dozen major apparel brands are now sourcing from Myanmar.
The code was drafted following a number of workshops and meetings with international brands and partners. The aim is to provide a benchmark for responsible business practices in Myanmar's garment sector and includes International Labour Organisation Core Conventions combined with the strictures of Myanmar's own laws.
Human Rights Watch, the US NGO recently suggested in its annual report that the human rights situation has deteriorated in 2015. Asked about this, Clare added: "The worst thing brands can do for human rights in Myanmar would be to turn their back on this country. The brands who are here publicly and transparently – Gap, Adidas and H&M in particular – are all champions of responsible business in this country, and I've seen them engaging with the industry in very real and meaningful ways. We need further positive engagement of this kind to help this industry avoid the pitfalls made by some other countries.
"For MGMA, promoting safe and international-standard working conditions via a Code of Conduct is a great way for this association to take a leadership role in supporting human rights. International buyers should be proud to source from Myanmar. EU buyers and US buyers, in particular, have the power to incentivise responsible working conditions by only sourcing from factories who meet international standards for safety and labour practices. I've seen it over and over – EU buyers are helping the industry's factory owners quickly learn that social compliance and environmental standards are critically important if they want to build successful businesses."
SOURCE: The Eco Textile
The Woolmark Company presents the latest fabric innovations in Merino wool at this year's ISPO trade show, the leading international platform for the sport business elite which started from 5-8 February in Munich, Germany. Merino wool apparel enjoying commercial success across the globe, Woolmark has placed a greater focus on outerwear, with an innovative woven fabric.
MerinoPerform WP made from 100% Australian Merino wool is designed to deliver a unique, high-performance machine-washable fabric, which is resistant to wind and rain. Using the latest fibre stretching technology, the wool is pre-stretched and spun into yarn before being woven into MerinoPerform WP. MerinoPerform WP represents a significant development in the sports and outdoor sector, creating a fabric ideal for outer-wear apparel. The fabric super-contracts during the dyeing and finishing process which creates a highly compact fabric with enhanced water and wind resistance.
According to Rob Langtry, The Woolmark Company Chief Strategy and Marketing Officer, research and development have always been an integral part of The Woolmark Company's operations. The Woolmark Company is working to spread the message that wool is also a fibre for warmer climates and indoor activity. In addition, lightweight knitted Merino wool fabrics for Spring/Summer and indoor use will also be on display.
Wool is a trans-seasonal, high-performance fibre and the natural choice for sports and outdoor wear. Merino wool apparel provides a high level of comfort, suitable for those seeking a sense of wellbeing in a broad range of leisure and sporting activities and wool’s natural properties such as moisture management and odour resistance make it a fibre of choice for athletes. The Woolmark Company has introduced a new Woolmark Specification for wool-filled products in response to changing market trends. The specification will now allow manufacturers and garment makers to carry the Woolmark or Woolmark Blend logo on suitable qualifying products, with a range of stock tickets and labels available for garments.
Other significant developments and innovations from The Woolmark Company's MerinoPerform brand partners to be exhibited at ISPO include warp knits, merino wool blend wovens, laminated mid and outer-layer fabrics, merino wool denim, an ultrafine, 14 micron, merino wool fabric, and lightweight jersey for fitness. Wool-filled apparel products are becoming increasingly important in the sports and outdoor markets – an area traditionally dominated by synthetics, feather and down products.
SOURCE: YarnsandFibers
