Buoyed by the Production Linked Incentive (PLI) scheme and free trade agreements with the UAE and Australia, the industry expects India’s exports of manmade fibre (MMF) textiles to increase 75% to $11.4 billion in 2030 from around $6.5 billion in 2021-22 India is the second largest producer of MMF after China. Curtains, drapes and interior blinds, curtain or bed valances of synthetic fibres, tents of synthetic fibres and tarpaulins are some of the products which can drive this growth “Technical textiles is a sunrise sector and the future of this industry,” said a government official, adding that ambitious targets have been set for it Currently, MMF dominates global textile fibre consumption, with a 72% share, while natural fibre accounts for 28%. The share of MMF has been steadily increasing due to the inherent limitations of growth of cotton and other natural fibres. The industry’s vision includes tapping new markets such as Vietnam, Japan, China and Poland, besides the existing ones, including the US, Turkey, the UK and Brazil, where India has about 5% share in exports of MMF textiles. The plan is also to improve capacities of filament-based woven and knitted fabrics and processing of man-made filament yarn-based fabrics.
Bhadresh Dodhia, chairman, Synthetic & Rayon Textiles Export Promotion Council highlighted “Manmade fibre textiles are environment friendly and sustainable as they require less water compared to cotton textiles, are cheaper and more value addition can be done on them.” Dodhia who stated that technical textiles are largely made of MMF and changing lifestyles, concern for safety and health will lead to more use of technical textiles. India maintained its exports share in global trade of MMF textiles at 3.4% from 2016-2021, but the challenge emanates from Bangladesh, Turkey, Cambodia, Vietnam, Pakistan and African countries enjoying duty-free access to all the major markets such as the EU and the US while Indian products attract 10-34% duty. As per the Confederation of Indian Textile Industry, globally, MMF products have about 55% share in global textile trade.
Source: India Shipping News
Media reports of incentives planned in the draft textile policy of Gujarat were circulated widely among the textile and apparel manufacturers in Coimbatore and Tiruppur on Wednesday, November 29, 2023. There has been widespread concern within the industry over the past few months of investors moving from Tamil Nadu and with the textile industry in other States becoming more competitive, said a spinning mill owner in Coimbatore. “We will lose not just investments and capacities, but expertise available in this region of Tamil Nadu, if there is a flight of investments to other states,” he said. While a couple of integrated garment units are planning investments or expansion in Madhya Pradesh, at least two more are looking at Bihar. In states like Maharashtra and Gujarat, raw material (cotton) is readily available, and textile processing is easier as they follow marine discharge and not zero liquid discharge, these are major fabric clusters, and power cost is also subsidised, said an industry spokesperson in Coimbatore.
Source: The Hindu
The Textile Ministry is on the brink of concluding its assessment of a pilot initiative, conducted in collaboration with the Agriculture Ministry, aimed at progressively enhancing the productivity of Indian cotton farmers to match global standards, reported The Economic Times. Rachna Shah, the textile secretary, said, “We are trying to gradually raise the productivity of Indian cotton farmers from the average 450 kg per hectare to global levels of 1,500-2,200 kg per hectare.” The comprehensive evaluation of this study, encompassing 15,000 farmers across ten key textile-producing states, is anticipated to be finalised by January 2024. The upcoming 81st Plenary Meeting of the International Cotton Advisory Committee (ICAC) in Mumbai from 2nd-7th December will feature several innovations, emphasising local advancements and state-of-the-art technologies with potential global impact on the cotton value chain. India’s Textile Ministry plans to unveil “Kasturi cotton,” its premium cotton variant, at this inter-governmental event, welcoming participants from 28 member countries and seven invitee countries. “ICAC will be a platform to present Kasturi cotton before the global audience. There are three pillars to the premium product: branding, traceability and certification,” highlighted the secretary.
Blockchain technology will ensure the traceability of Kasturi cotton, employing QR codes for consumers to track the entire procurement process, she further explained. India aims to position itself in the premium cotton segment, competing with renowned cotton varieties like Giza from Egypt and Suprima from the United States. Additionally, the ICAC event will promote Bharat Tex 2024, scheduled for February, to showcase India’s handloom and textile products globally. Simultaneously, while the ministry prepares to introduce premium cotton, it’s also swiftly addressing concerns regarding subdued prices for Indian cotton. Lalit Kumar Gupta, Chairman and MD of the Cotton Corporation of India, noted the organization’s purchase of cotton at the Minimum Support Price at 450 locations. Last year, cotton prices surpassed Rs. 12,000 per quintal, while the MSP for long-staple cotton remains at Rs. 7,020 per quintal.
Source: Apparel Resources
MUMBAI: The rupee closed at a record low of 83.39 against the dollar, though the decline was only three paise from its previous close and 10 paise over a month. Forex dealers attributed the weakening to demand from importers. While RBI stepped in, it did not aggressively defend any exchange rate. The rupee's movement against the dollar contrasted with other Asian currencies, which gained with an easing of yields in US treasuries. The euro, Singapore dollar, Taiwan dollar, Thai baht, Chinese yuan, and Malaysian ringgit firmed up against the dollar. Despite the rupee weakening against the dollar, the stock market continued its rally for the third day - with the sensex reaching a high of 67,069 intra-day. Besides the apparent decoupling of the rupee movement and the stock indices, another trend seen in recent days is the decoupling of the rupee-dollar exchange rate from other major currencies. The decoupling benefits importers as most of the trade invoicing is in US dollars. "We expect US dollar/rupee to remain volatile amid sideways movement in the dollar index and key GDP data. If the pair sustains above 83.4, it could test 83.52-83.65 levels while 83.2 will act as support," said Rahul Kalantri, vice president at Mehta Equities. Dealers mentioned that pressure on the rupee would mostly be because of demand from oil companies.
Source: Times of India
India’s gross domestic product (GDP) grew at 7.6 per cent in the September quarter of 2023-24, outperforming expectations by a wide margin as manufacturing and construction activities expanded by double digits. These figures signalled that economic recovery was well underway in Asia's third-largest economy, despite the current adverse geopolitical situation.
While the Reserve Bank of India (RBI) had projected GDP growth of 6.5 per cent for the second quarter of FY24, a Reuters poll of economists estimated it to be slightly faster, at 6.8 per cent. “The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally. We are committed to ensuring fast-paced growth to create more opportunities, rapid eradication of poverty and improving ‘Ease Of Living’ for our people,” Prime minister Narendra Modi posted on X. Data released by the National Statistical Office (NSO) showed a robust nine-quarter high growth in the manufacturing (13.9 per cent) and construction (13.3 per cent) sectors. However, this was offset by a steeper slowdown in services activity. The strong growth in manufacturing was driven by a surge in listed company profits, supported by a rise in volume growth and an improvement in profit margins due to continued deflation in input prices. The robust growth in the construction sector reflected the front-loading of capex by the Centre and state governments. The slowdown in the services sector to a six-quarter low was driven by the trade, hotels, transport, and communication services sub-sector (growth of just 4.3 per cent), which is the largest contributor to GDP. Despite this, with 17.7 per cent growth over the second quarter of FY20, the sector exceeded the pre-pandemic levels, after falling short in the first quarter of FY24. Other services sub-sectors, such as financial and real estate (6 per cent) and public administration and defence (7.6 per cent), also saw a significant slowdown in activity, despite robust credit growth and a pick-up in government spending.
In the first half (April-September) of FY24, the economy grew at 7.7 per cent, with 7.8 per cent growth in the June quarter. To meet the full-year estimate of 6.5 per cent by the central bank, the economy needs to grow at 5.3 per cent in the second half (October-March) of the financial year. Considering the RBI's growth forecasts for the third and fourth quarters at 6 per cent and 5.7 per cent, respectively, annual growth in FY24 could reach 6.7 per cent.
Source: Business Standard
NEW DELHI: The country's economy grew faster than expected in July-September, powered by robust growth in manufacturing (at a 9-quarter high of 13.9%), construction and mining. It posted 7.7% growth in the first half of 2023-24 against the backdrop of a slowing global economy. Data released by the National Statistical Office (NSO) on Thursday showed gross domestic product (GDP) rose 7.6% in the July-September period, the second quarter of the 2023-24 fiscal year, higher than 6.2% in the same year-ago period and marginally lower than 7.8% recorded in the April-June period. The second quarter performance beat market expectations and was higher than RBI's estimate.
India to remain fastest growing major economy
The strong numbers for the second quarter also help India remain the fastest growing major economy in the world. Several multilateral agencies have raised their growth estimates for the current financial year citing resilient domestic demand. The finance ministry said growth prospects appear bright, though external factors pose a downside risk, but pointed out that the July-September quarter numbers "pose a certain upside" to the 6.5% GDP growth estimate for the current financial year. The manufacturing sector rose at a nine-quarter-high of 13.9%, higher than the previous quarter's 4.7% and above the contraction of 3.8% in the second quarter of last year. The construction sector, which has been on an upswing since the lifting of the Covid induced curbs, grew 13.3% during the quarter while mining, electricity, gas, water supply and other utility services posted double-digit growth. The farm sector and the services sector slowed, posing some worries as patchy monsoon rains weighed on the agriculture segment, which posted its slowest growth in over four and a half years. "India's GDP growth came much higher than expected at 7.6% in Q2 FY24, driven by significant acceleration in manufacturing and construction sector activities," said Rajani Sinha, chief economist at ratings agency CareEdge, adding that growth was boosted by investments and higher government consumption. But experts said that going forward the economy will face several challenges, including the tough geopolitical situation, upcoming general elections, prospects of slowing global trade growth and the trajectory of inflation."Looking ahead, we project GDP growth to moderate significantly in H2 FY2024, with the continuing headwinds such as the normalising base, weak outlook for agri output and rural demand, tepid global growth...," said Aditi Nayar, chief economist at ICRA.
Source: Times of India
NAIROBI Global trends indicate that Africa is the next big destination Global trends indicate that Africa is the next big destination for textile and apparel investments for textile and apparel investments trade and industries. This is trade and industries. This is especially so for East Africa and in particular Kenya especially so for East Africa and in particular Kenya owing to its owing to its wide experience of exporting to the US market under AGOA and wide experience of exporting to the US market under AGOA and the EU under EPCA the EU under EPCA AFCTA and other bilateral arguments AFCTA and other bilateral arguments stated stated Dr. Juma Mukhwana Dr. Juma Mukhwana Principal Secretary Principal Secretary State Department of State Department of Industry Industry Republic of Kenya Republic of Kenya today today Addressing the inaugural function of ITME Africa and Middle Addressing the inaugural function of ITME Africa and Middle East Exhibition which opened here today East Exhibition which opened here today Dr. Mukhwana called Dr. Mukhwana called upon the Indian textile upon the Indian textile clothing and machinery industry to set-up clothing and machinery industry to set-up business ventures in Kenya. Kenya can serve as a springboard for business ventures in Kenya. Kenya can serve as a springboard for Indian companies looking to enter the African region and also to Indian companies looking to enter the African region and also to USA on account of quota free and duty-free access USA on account of quota free and duty-free access he added. he added. Dr. Mukhwana informed that Kenya was on the cusp of Dr. Mukhwana informed that Kenya was on the cusp of signing a deal with European Union for quota free and duty-free signing a deal with European Union for quota free and duty-free access for 25 years and Indian firms can also venture into this access for 25 years and Indian firms can also venture into this lucrative market through their Kenyan companies. lucrative market through their Kenyan companies. He pointed out that India's prowess in textile technology and He pointed out that India's prowess in textile technology and innovation aligns seamlessly with Kenya's burgeoning tech innovation aligns seamlessly with Kenya's burgeoning tech ecosystems. The exchange of expertise ecosystems. The exchange of expertise knowledge and investment knowledge and investment in textile and clothing sector promises to create a symbiotic in textile and clothing sector promises to create a symbiotic relationship that propels both nations forward relationship that propels both nations forward he added. he added. Indian technology Indian technology Dr. Mukhwana said Dr. Mukhwana said is better represented is better represented in Kenya in Kenya perhaps given the recent modernisation of the Kenyan perhaps given the recent modernisation of the Kenyan Rivatex East Africa Limited Mill – which now has the capacity to Rivatex East Africa Limited Mill – which now has the capacity to produce 70 produce 70 000 metres of fabric per day. 000 metres of fabric per day. Indian textile machinery can also be found in other segments Indian textile machinery can also be found in other segments of the Kenyan textile supply chain as well – especially spinning of the Kenyan textile supply chain as well – especially spinning and some segment of textile printing and processing and some segment of textile printing and processing he informed. he informed. Dr. Mukhwana said that Kenya’s Vision 2030 identifies the Dr. Mukhwana said that Kenya’s Vision 2030 identifies the textile sector as a driver of industrialisation and aims to develop textile sector as a driver of industrialisation and aims to develop Kenya’s image as Africa’s hub for innovation and green Kenya’s image as Africa’s hub for innovation and green manufacturing which is catalytic to transforming Kenya into an manufacturing which is catalytic to transforming Kenya into an industrialised middle-income country offering a high-quality life industrialised middle-income country offering a high-quality life to all its citizens. to all its citizens. “I believe that textile industry in Kenya is a sleeping giant “I believe that textile industry in Kenya is a sleeping giant and utilising the available resources sustainably and with great and utilising the available resources sustainably and with great platforms like ITME Africa platforms like ITME Africa Kenya could actualise the potential of Kenya could actualise the potential of job creation and economic development job creation and economic development ” he pointed out. ” he pointed out. Dr. Mukhwana noted that the evolving dynamics of the Dr. Mukhwana noted that the evolving dynamics of the industry industry which includes emphasis for ‘fast fashion’ is forcing the which includes emphasis for ‘fast fashion’ is forcing the industry to look at how to get products to market quickly and industry to look at how to get products to market quickly and efficiently to meet the rapidly changing tastes and styles. efficiently to meet the rapidly changing tastes and styles. This need has challenged a leading supplier in Africa to This need has challenged a leading supplier in Africa to reconsider their processes and how to most effectively ‘retool’ in reconsider their processes and how to most effectively ‘retool’ in response to the new industry paradigm response to the new industry paradigm he added. he added. Earlier Earlier Mr. Rohit Vadhwana Mr. Rohit Vadhwana Deputy High Commissioner to Deputy High Commissioner to Kenya Kenya noted that there is tremendous opportunity of trade and noted that there is tremendous opportunity of trade and commerce between India and Kenya commerce between India and Kenya He informed that Indian and Kenyan government have He informed that Indian and Kenyan government have decided to settle their trade payments using local currencies. This decided to settle their trade payments using local currencies. This will reduce dependency on hard currencies for businesses and in will reduce dependency on hard currencies for businesses and in the long run both the countries will save their foreign exchange the long run both the countries will save their foreign exchange reserves reserves he added. he added. Mr. Ketan Sanghvi Mr. Ketan Sanghvi Chairman Chairman India-ITME Society India-ITME Society informed informed that ITME Africa and Middle East Expo has attached exhibitors that ITME Africa and Middle East Expo has attached exhibitors across borders across borders with more than 60 companies from India with more than 60 companies from India more more than 25 from China and 13 from Italy. All in all than 25 from China and 13 from Italy. All in all 120 companies 120 companies from 11 countries are exhibiting to the business visitors from Kenya from 11 countries are exhibiting to the business visitors from Kenya & other African Nations. & other African Nations. To facilitate interaction among all delegates To facilitate interaction among all delegates Mr. Sanghvi Mr. Sanghvi informed that India ITME Society has curated multiple interactive informed that India ITME Society has curated multiple interactive sessions at the event. Financial solutions for Investments sessions at the event. Financial solutions for Investments JV’s & JV’s & Capital good sourcing from India Capital good sourcing from India will be explained by Exim Bank will be explained by Exim Bank of India & Bank of Baroda of India & Bank of Baroda at Special session during the exhibition at Special session during the exhibition.
Source: Tecoya Trend
The Vietnam Textile and Apparel Association (VITAS) aims to earn $44 billion from textile and apparel exports next year amid positive developments witnessed in the last quarter this year. The export revenue this year is estimated to top $40 billion, about 9.2 per cent less than that of last year’s, VITAS chairman Vu Duc Giang told a recent press conference. The United States remained the biggest importer of Vietnamese textile and apparel, with a turnover of over $11 billion by the end of September this year. It was followed by Japan (about $3 billion), South Korea ($2.43 billion) and the European Union ($2.9 billion). Vietnam’s exports to the EU, however, failed to meet expectations with the first nine month’s revenue dropping by 13 per cent, a news agency reported. There is a need for the country to focus on developing the fashion industry, building domestic brands and then making them globally known, Giang added.
Source: Fibre2fashion
Two companies from Uzbekistan intend to build a large textile factory in the Jalal-Abad region, Azernews reports, citing Kun.uz News Agency. The plenipotentiary representative of the President of Kyrgyzstan in the Jalal-Abad region, Absattar Syrgabaev, signed a trilateral investment agreement with Art Soft Holding and Sassa Group. Construction of the factory on an area of 20 hectares will begin in December this year and will be completed by the end of 2024. The project is estimated to cost $31 million and will create more than 1,000 jobs. The company plans to produce cotton fabrics, as well as finished products.
Source: Azer News
WASHINGTON: The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. The Paris-based Organization for Economic Cooperation and Development (OECD) estimated Wednesday that international growth would slow to 2.7% in 2024 from an expected 2.9% pace this year. That would amount to the slowest calendar-year growth since the pandemic year of 2020. A key factor is that the OECD expects the world's two biggest economies, the US and China, to decelerate next year. The US economy is forecast to expand just 1.5% in 2024, from 2.4% in 2023, as the Federal Reserve's interest rate increases - 11 of them since March 2022 - continue to restrain growth.
Source: Times of India
BRASILIA: Brazilian President Luiz Inacio Lula da Silva said on Monday that Vietnam has expressed interest in a trade deal with the Mercosur bloc of Brazil, Argentina, Paraguay and Uruguay, adding he will bring the topic up for discussion with those countries. Lula, who is currently chairing the group, said he wants to bring Mercosur members closer to Asian countries and highlighted there is room for trade with Vietnam to grow, as he welcomed Vietnamese Prime Minister Pham Minh Chinh in Brasilia. The move comes as the Mercosur bloc tries to finalize a long-awaited trade deal with the European Union, which the leftist leader has been pushing to be concluded by the end of this year. Mercosur and the EU reached an agreement in 2019 after two decades of negotiations but it has been on hold due to environmental concerns. Canada, South Korea and Singapore are other countries in talks for trade deals with Mercosur. Lula had previously hinted at potential agreements with China, Indonesia, Vietnam and countries in Central America and the Caribbean. The Brazilian leader said on Monday he aims to deepen the Brazil-Vietnam cooperation in sectors such as agriculture, education and defense, adding that both governments had signed deals covering those areas during their get-together. The agriculture agreement, he said, will further open Vietnam's market to Brazilian products. A memorandum of understanding on defense, Lula added, was the "first step" towards a future deal that would open room for his country to export defense products to the Asian nation, "including aircraft". Minh Chinh on Saturday visited the headquarters of Brazilian planemaker Embraer in Sao Paulo state. Lula also thanked Vietnam's support to Brazil in its bid to become a permanent member of the United Nations Security Council and said he accepted Minh Chinh's invitation for him to visit Hanoi next year. "We are two Global South countries committed to peace, multilateralism, sustainable development and the fight against hunger and poverty," Lula said. "We want greater representation in international governance."
Source: Times of India
Bangladesh textile industry is in the news over the wage review, as the minimum wage in Bangladesh has been brought at par with Pakistan. This, along with growing political crisis in Bangladesh, has offered opportunity to Pakistan to grab some of Bangladesh’s share in garments exports. Last financial year, Bangladesh export under Chapters 61 and 62 (knits and woven) was $47 billion, almost three times that of Pakistan’s total textile exports. In Bangladesh, the minimum wage is revised up after five years from 8,000 Bangladeshi taka (BDT) ($72) to BDT 12,500 ($113). There has been no revision of the minimum wage since 2018, except partial upticks.Labor has demanded much higher increase up toBTD 23,000 ($210), while the industry was offering BTD 10,400 ($95). However, the government led wage board has determined minimum wage at BTD 12,500 ($113). The workers believe the wage increase isn’t sufficient. Interestingly, now the minimum wage in Bangladesh (at $113) is close to Pakistan’s Rs 32,000 ($113). Moreover, there are add-ons such as Worker Participation Fund, Old Age Benefits, and compulsory one month bonus which brings the cost for Pakistani textile players up to $150, while these top ups are lower in the case of Bangladesh where effective cost for textile manufacturers comes around $125. Even after all the addons, the gap between the Pakistani and Bangladesh’s minimum wage cost is narrowing. The usual norm in Bangladesh is to revise the minimum wage every five years – roughly coinciding with the election cycle whereas in Pakistan it is an annual exercise. The political chaos in Bangladesh is making things even worse. A few weeks back, tens of thousands of garment workers who work for manufacturing units making products for Zara, H&M and Gap went on strike, as the government refused to increase the minimum wage adequately, or to compensate for the growing cost of living.Reportedly, four of the protestors were killed during the riots. And the new wage award at $113 equivalent, from earlier offing of $90 is about to be implemented from 1stDecember 2023; but it is still much lower than the demanded. These riots and labour suppression may not bode well for Bangladesh as it could become target of the recently released US presidential memorandum onlabour rights, as labour issues in Bangladesh were specially referred to by the US Secretary of State at the launching ceremony of the memorandum. One can smell politics here. Elections are around the corner in Bangladesh,while the current PM has been in power since 2009, and the country has faced democratic backsliding on her watch. The country’s scorecard on human rights and media freedom has also worsened. The US does not like it, and that could have an impact on the country’s exports to the US. No wonder, Bangladesh is worried. Bangladesh enjoys Least Developed Country (LDC) status, and thus suffers fewer volume restrictions for exporting to the EU. The bulk of the Bangladeshi textile advantage is based on low labor, more than two third of which are women. Rise in per capita income, along with pressures on enhancing wages means the country may have to relinquish the LDC status 2026 onwards, as it goes up the development ladder. And by 2030, Bangladesh may receive similar treatment in the EU as Pakistan receives today. The point of this snapshot is to bring to notice of textile players and Islamabad that there is a potential to grab some of the Bangladesh’s market share, as the country faces politico-economic flux. Its economy is too textile dependent and buying markets are suffering too. All we need is to expand sustainably in apparel and garments and bring more women in the working force.
Source: Brecorder
