Indian textile sector is expected to attract ₹95,000 crore investments in the next four-six years from two schemes – the production-linked incentive (PLI) to the sector, and the proposed seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks and generate over 2.25 million additional jobs, a senior official said. “While the seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks are expected to attract ₹70,000 crore in four-six years with 20 lakh direct and indirect employments, the PLI scheme is likely to attract investments worth ₹25,000 crore with 2.5 lakh additional jobs,” textiles secretary Rachna Shah said on Friday.
Shah said 64 PLI proposals have been already approved and other 12 applications are under evaluation. Performance of units will be evaluated soon after gestation period is over on March 31, 2024, she added. According to the scheme, the government will start giving incentives from 2025-26. “In case of fast paced investment when threshold investment and threshold turnover is achieved by 2023-24, incentive may be payable in 2024-25 itself,” the scheme document said. The PLI scheme for textiles sector is focused on man-made fibre (MMF) , MMF apparel and technical textiles to boost large scale manufacturing and enhancing competitiveness. Launched in September 2021, the ₹10,683 crore PLI scheme for textiles sector is expected to result into a cumulative turnover of over ₹3 lakh crore. It is part of the ₹1.97 lakh crore PLI schemes for 14 sectors including automobile, pharmaceuticals, telecom, steel, white goods and solar modules. The other scheme -- the ₹4,445 crore PM MITRA parks -- was notified by the government in October 2021. They are aimed at creating a modern, integrated large-scale, world class industrial ecosystem that will help in attracting investments and boosting employment, she said. The seven sites are Virudhnagar in Tamil Nadu, Warangal in Telangana, Navsari in Gujarat, Kalaburagi in Karnataka, Dhar in Madhya Pradesh, Lucknow in Uttar Pradesh, and Amravati Maharashtra. It is estimated that each park will attract investment worth ₹10,000 crore from both foreign and domestic investors.
Shah said the government is taking several such policy measures to boost textile industry with the aim to make it $350 billion sector by 2030 from the current level of $154 billion. “One such effort is Bharat Tex, which is set to be the largest global textile event of India. The four-day event is beginning from Monday in New Delhi, which will be inaugurated by Prime Minister Narendra Modi.” “Besides China, India is the only country to have the entire textile value chain (from fibre to fabric and apparel), and Bharat Tex will project this strength before an international audience. This will showcase the entire strength of the textile ecosystem which is very unique to India,” she said. Bharat Tex will have participation from 100 countries and more than 3,000 trade buyers, she added.
Source: The Hindustan Times
India and Ghana are working to link their payment systems-Unified Payments Interface (UPI) and Ghana Interbank Payment and Settlement Systems (GHIPSS) respectively to permit users to make instant, low-cost fund transfers on a reciprocal basis. The two countries have also delved into discussions regarding the possibilities of a Memorandum of Understanding on Digital transformation Solutions; Local Currency Settlement System and the opportunities offered by African Continental Free Trade Agreement (AfCFTA). "They agreed to work expeditiously towards the operationalisation of NPCI's (National Payments Corporation of India) UPI on Ghana's GHIPSS within a period of 6 months," the Department of Commerce said on the social media platform X (formerly twitter). India's UPI has already reached countries including Singapore and the UAE. Talks are also on with Nigeria for the same. These issues were discussed during the visit of a seven-member Indian delegation led by Additional Secretary in the Department of Commerce Amardeep Singh Bhatia to Accra, Ghana on May 2-3. NPCI International has recently announced its partnership with Bank of Namibia to support them in developing a UPI-like real-time payment system in the African nation. The bilateral trade between India and the West African nation Ghana has increased to USD 2.87 billion in 2022-23 from USD 2.6 billion in 2021-22. The trade gap is in the favour of Ghana mainly due to imports of gold by India which accounts for nearly 80 per cent of total imports from Ghana. Ghana exports gold, cocoa, cashew nuts and timber products, among others, to India. It imports pharmaceuticals, agricultural machinery, transport vehicles, electrical equipment, plastics, iron and steel, ethyl alcohol, beverages and spirits, cereals, made-up textiles from India.
Source: The Economic Times
The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Business Council of Australia (BCA) recently signed a memorandum of understanding (MoU) to identify and create more business opportunities between the two nations. “India and Australia's bilateral trade in goods and services is over $45 billion, and we are working towards doubling it in the next five years,” FICCI secretary general S K Pathak said. The MoU aims at strengthening bilateral trade and investment partnerships by cooperating on shared areas of advantage and identifying new areas of growth in emerging markets, a FICCI release said. BCA chief executive Bran Black stressed on working towards removing trade barriers and exploring investment opportunities. India is Australia’s fifth largest export market, and exports are highly sought after in India. Australian exports to India worth $32.5 billion, while imports were worth $12.6 billion in fiscal 2022-23.
Source: Fibre2fashion
Loop Industries, Inc. (NASDAQ:LOOP) (the "Company" or "Loop"), a clean technology company whose mission is to accelerate a circular plastics/fiber economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, concluded an agreement with Ester Industries Ltd. ("Ester"), one of India's leading manufacturers of Polyester Films and Specialty Polymers, to form a 50/50 India joint venture ("India JV"). The purpose of the India JV is to build and operate an Infinite Loop India manufacturing facility which will produce a unique product offering of lower carbon footprint recycled dimethyl terephthalate ("rDMT"), recycled mono-ethylene glycol ("rMEG") and specialty polymers in India, using the Infinite Loop technology which offers significant advantages over traditional mechanical PET recycling. Loop and Ester have a well-established working relationship, with Ester producing Loop PET for Loop's global brand customers over the last four years. The India JV leverages the complementary skill set of each partner by combining Loop's innovative technology and well-established global customer base with Ester's nearly 40 years of specialized polymer production, operational proficiency, and local expertise, including sourcing of PET plastic and Polyester fiber waste feedstocks. The DMT and MEG specialty chemicals global market size is estimated at US$28 billion and forecasted to grow at a 3.7% CAGR through 2033. The market is experiencing a global shortage of DMT due to recent plant closures in Europe, and low-carbon DMT and MEG are in high demand, but market options are limited and costly. The Infinite Loop India facility is expected to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually and Ester will toll convert the rDMT and rMEG into various grades of specialty polymers. The planned facility in India can lower carbon emissions by up to 70% compared to virgin DMT and MEG manufactured from fossil fuels1, offering chemical companies a simple drop-in supplement and circular alternative that helps them achieve their sustainability goals. The rDMT and rMEG product offerings manufactured at the Infinite Loop India facility represent a strategic product expansion in a low-cost manufacturing environment which complements Loop's existing PET plastic and polyester fiber manufacturing business and will fuel growth by addressing the large and growing demand in the market. This expansion enables the Infinite Loop technology to reach new markets and cater to a broader range of customers across multiple industries including the electronics, automotive, textile, cosmetics and packaging industries. The India facility will leverage the Infinite Loop technology and existing engineering package which accelerates the lead-time towards ground-breaking, slated to occur by end of this year. Feedstock sourcing for the facility, in which there is abundant supply from textile waste in India, is well advanced and the partners have engaged an external firm to source and secure the land for the facility. Construction is expected to be completed by the end of 2026, with commercial operations commencing in early 2027. The India JV offers attractive economic returns without the need for substantial sustainability-linked premium pricing. Total capital investment is estimated approximately at US$165 million. Arvind Singhania, chairman and CEO of Ester Industries Ltd. commented "Ester and Loop have a long-standing working relationship with a deep alignment of values and shared commitment to circularity and driving sustainable change. This partnership reinforces our dedication to advancing sustainable solutions in the polymer industry and by leveraging Loop's technology alongside our decades of polymer production experience, we will contribute to reducing the carbon footprint of our products, meeting the evolving needs of our customers." Loop's founder and CEO Daniel Solomita commented "Our partnership with Ester reflects a strategic alignment built on our shared values of sustainability and innovation and combines both companies' areas of expertise. The specialty chemicals market offers a unique opportunity to expand the reach of our Infinite Loop technology beyond PET and polyester fiber and provides our customers with a sustainability linked advantage in the specialty chemicals market. Customer demand for rDMT, rMEG and specialty polymers produced using our technology is robust due to very limited viable options available in the marketplace today. The Infinite Loop India facility represents a great opportunity for Loop to be a part of the fastest growing economy in the world and capitalizing on operating in a low-cost manufacturing environment. We see India and this partnership with Ester as a tremendous growth opportunity for future expansion. This approach allows us to optimize returns, expand our presence in key markets, and drive sustainable growth while maximizing shareholder value."
Source: Fibre2fashion
India and Nigeria have identified areas such as crude oil, natural gas, pharmaceuticals, Unified Payments Interface (UPI), local currency settlement system, and power sector to increase cooperation for boosting economic ties. The commerce ministry on Friday said that these issues among others were discussed during a recent visit of a seven-member delegation from India to Nigeria. The delegation was led by Additional Secretary, Department of Commerce, Amardeep Singh Bhatia. The Indian delegation consisted of officials from Reserve Bank of India (RBI), EXIM Bank of India and National Payments Corporation of India (NPCI), the ministry said in a statement. It said that both sides identified several areas of focus for enhancing bilateral trade as well as mutually beneficial investments. "These include resolving of market access issues of both sides, and cooperation in key sectors such as crude oil and natural gas, pharmaceuticals, UPI, local currency settlement system, power sector and renewable energy, agri and food Processing, education, transport, railway, aviation, MSMEs," it said. They also agreed to early conclusion of Local Currency Settlement System Agreement to further strengthen bilateral economic ties. Nigeria is the second largest trading partner of India in Africa region. Bilateral trade between India and Nigeria declined to USD 7.89 billion in 2023-24 from USD 11.8 billion in 2022-23. With a total investment of USD 27 billion, about 135 Indian companies are actively engaged in Nigeria. These investments traverse diverse sectors, encompassing infrastructure, manufacturing, consumer goods and services.
Source: The Economic Times
The next five years for India are going to be of economic stability coupled with volatility on different fronts, a prominent Supreme Court advocate has said, observing that the country's growth story will be impeded by law and order issues if the government doesn't come out with a mechanism to deal with the street warfare. I think the economic success of Bharat is a foregone conclusion for multiple factors, and I'm not being overconfident here. There is a hunger for economic growth within the population, which is significantly driving the India story," J Sai Deepak, who is also a popular public speaker among the BJP's support base, told PTI in an interview here. This hunger coupled with the enabling factors that the government has decided to create, in terms of a conducive atmosphere, will certainly help the growth story, he said. But the growth story will be impeded by law-and-order issues if the government doesn't come out with a mechanism to deal with the revised form of street warfare that we have been witnessing over the last five years. That's not unique to India. The strategy seems to have been employed across the world. I don't think the way of the future is the kind of terrorist attacks that you saw maybe in the last 20 or 25 years, you're going to be looking at a lot of urban warfare, he said. That's how experts call it, where streets are occupied and you're not dealing with an organised set of people in terms of a core group, but where they choose to unleash a larger mob, an indeterminate unidentifiable mob. That kind of mob warfare, I think India needs to get ready for because if it doesn't, the experiment of at least two of those protests between 2019 and 2024 will be replicated at a larger scale," he said. So, Deepak said he was more concerned about how the government and society will respond to it than about the outcome of the elections because he said he was fairly confident of what the outcome is going to be, referring to Shaheen Bagh and farmers' protests. Responding to a question, he cautioned against a period of instability in India in the next five years. Economic stability, coupled with volatility on different fronts. I think it's not just a function of Bharat's internal politics, but also because globally I sense a rise in entropy levels across the board, which could perhaps spill over into India or add to existing tensions in certain parts of India. Which is why I said that I'm not concerned about India's economic rise. "I'm more interested in its ability to handle these situations with a firm hand without necessarily being bogged down by international opinion or the West's opinion because we need to do what we need to do to stay in the game, Deepak said. The interesting part of the current situation is a convergence of interests between the vested interests within and outside, both of whom are interested in seeing the India story fall and fail, he said. Noting that there are multiple voices in the West, he said those who are interested in India's growth story because they want to invest in the country are looking at it from a positive perspective. Those who are not comfortable with that rise are obviously looking at a different set of issues and deliberately projecting a negative picture. Responding to a question, he said that a weak Opposition is not good for India. (Prime Minister Narendra) Modi is blessed with a weak Opposition, and India is cursed with a weak Opposition. I don't think it bodes well in general because the quality of the Opposition also determines the quality of the democracy. Unfortunately, the kind of issues that they (the Opposition) have chosen to discuss as part of their election manifesto and their strategy leaves a lot to be desired. "It is not remotely representative of the forward-looking Bharat, he said.
Source: Business Standard
For at least a decade of the past 24 years, Odisha under the governance of Naveen Patnaik and his Biju Janata Dal (BJD) has maintained a consistent revenue surplus. This fiscal health has allowed the government to invest in asset generation and roll out social welfare schemes, despite its own tax revenues (OTR) accounting for at best a third of its revenue receipts during the past 10 years. The state kept its fiscal deficit within the permissible limit, even during the Covid-impacted year of 2020-21. It did not resort to the enhanced fiscal deficit limit permitted by the Centre during this period. Odisha took fiscal consolidation a step further by achieving a surplus position during the second wave of Covid-19 and the Omicron-hit year of 2021-22, when most states struggled to contain their fiscal deficit within even the enhanced permissible ceiling. The debt never exceeded 19.2 per cent of its gross state domestic product (GSDP) in any of these 10 years. This fiscal discipline meant that the state did not overstretch its resources, even on capital outlays, which at times constituted up to a quarter of total expenditure and 4-6 per cent of GSDP. However, this is only one side of the story. Critics of the BJD government argue that it has neglected to fill crucial vacancies and incur only necessary expenditures to maintain its revenue surplus position. Despite some positive indicators, such as the gender ratio and total fertility rate, the state’s socio-economic indicators leave much to be desired. For instance, the state’s unemployment rate remained higher than the national average in the past six years (for which data is available), though the gap narrowed in 2022-23. Similarly, the state’s per capita income has consistently been lower than the national average over the past decade, though the gap has been narrowing in recent years. The multidimensional poverty rate in the state surpassed the all-India level for 2015-16 and 2019-21, and female literacy and infant mortality rates are nothing to boast about, despite improvements over the years. Amarendra Das, associate professor in economics at the Bhubaneswar-based National Institute of Science Education and Research (NISER), argues: “Odisha has been consistently maintaining a revenue surplus by understaffing the public offices, including education and health departments. Our research shows that Odisha has negative genuine savings.”
Source: Business Standard
Residents of Kalyansundaram Nagar in Narasimhanaikenpalayam have warned of surrendering their family cards, voter ID cards aadhaar cards if the local body failed to take action on a textile mill operating in the area. According to R. Jeevanandam, a resident of Kalyansundaram Nagar, plans were made for a private mill in the neighbourhood three years ago. However, a representation was made to the Kurudampalayam panchayat, preventing the unit from being set up. Nevertheless, the textile mill has been operating in the area for the past eight months, and the resulting dust and noise has affected children and the elderly in the area, Mr. Jeevanandam alleged. In response, the residents submitted a memorandum to the Tamil Nadu CM Helpline. Subsequently, officials from the Tamil Nadu Pollution Control Board, after visiting the unit, confirmed that they had not granted permission for its operation, and advised that action should be taken by the local body. Consequently, the residents approached the panchayat once again. However, as of yet, no action has been taken, and Jeevanandam stated that residents will have no choice but to surrender their Aadhaar, PDS, and voter ID cards.
Source: The Hindu
HÀ NỘI — The textile and garment industry has long faced an imbalance between production stages. The two stages at the beginning and end of the chain, yarn and sewing, have a very large scale of development, while weaving and dyeing have remained industry bottlenecks for years. Infrastructure for weaving, dyeing and fabric production is still limited, and there is no spatial planning for development and centralised wastewater treatment, said Nguyễn Thị Tuyết Mai, Deputy General Secretary of the Việt Nam Textile and Apparel Association (Vitas). Some localities refuse textile and dyeing projects, saying that the textile and dyeing industry causes pollution, although investors say they will use modern processing technology that will not have a negative impact on the environment. Meanwhile, to enjoy preferential tariffs from new generation free trade agreements (FTAs), businesses must meet the rules of origin “from the yarn on” or “from the fabric onwards”. “To solve the problem of limited raw material supply, we need to take advantage of the benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to attract foreign investment in the raw material supply chain,” Mai told the Kinh Doanh (Business) online magazine. Experts believe that if the bottleneck in the dyeing process could be resolved, it would help raise Việt Nam's position in the global textile and garment supply chain, enabling it to take full advantage of FTA tariff preferences. Not only with the issue of textile dyeing, the shift of investment into the supply shortage of the Vietnamese textile and garment industry is still not as expected. Domestic enterprises in the textile and garment industry still lack connection and fail to fully complete the supply chain within the country. As a result, the supply of raw materials is heavily reliant on imports at various stages of the production process. Up to 90 per cent of textile and garment raw materials of enterprises in HCM City were dependent on imports (mainly from China), while only 10 per cent was local supply, said Phạm Xuân Hồng, Chairman of the HCM City Textile and Garment - Embroidery Association (Agtek). In general, shifting investment into the textile and garment raw materials sector required more effort from domestic enterprises, rather than relying solely on foreign direct investment (FDI), said Hồng. To reach the goal the Government has approved in the "Strategy for developing Vietnamese Textile, Garment and Footwear Industry by 2030, with a vision by 2035", one decisive solution needed is to increase investment in the industry's supply shortage. We must consider investing in the supply shortage in the textile and garment industry as an urgent need, noted Hồng. This requires policy support promotion and capital sources for domestic enterprises to invest in textile and garment supporting industries. Furthermore, in areas and localities with a high density of textile and garment enterprises, it is also recommended to build a number of large industrial parks in the field of textile and garment supporting industries with new technology to ensure environmental standards for "greening" the textile industry. — VNS
Source: Vietnam News
Rahim Textile Mills PLC – a concern of New Asia Group – has planned to expand its capacity with a projection of increasing its annual revenue by 24%. According to the plan approved by its board, the company will install new accessories and seamless dyeing machinery at the existing factory premises. With the machinery, civil construction, local expenses, and contingency works, it will invest Tk13.73 crore, according to a stock exchange filing on 30 April. The proposed new machinery installation will be financed by funds from internal generation as well as loans from banks and other sources. In the fiscal 2022-23, the firm suffered blows from increasing raw material prices, an unavailable gas supply, along with increases in gas and electricity prices, and losses in non-operating segments due to the high dollar exchange rate and adjustments to income tax provisions. As a result, it incurred a loss of Tk12.47 crore and did not pay dividends to its shareholders. It returned to profit in the current fiscal year, logging Tk60 lakh in gains from July to March, compared to its net loss of Tk8.61 crore a year ago. The firm attributed its profit increase to a decrease in the cost of goods sold, reducing basic raw material prices, as well as a decrease in administrative and selling expenses compared to the previous period.
In the January-March quarter, it made a profit of Tk36.34 lakh, compared to a loss of Tk4.15 crore a year ago.
The expansion plan
According to the plan, the existing production capacity of Rahim Textile Mills is three crore yards (300 lakh yards) of dyeing, printing, and finishing per annum. After the installation of new machinery, the capacity will be expanded for seamless dyeing of 19.44 lakh yards of cloth per year, and for accessory capacity with sewing thread of 31.50 lakh cones, draw cords of 45 lakh pieces, elastic of 252 lakh yards, twill tape of 45 lakh yards, Jacquard tape of 7.20 lakh yards, and heat seal of 300 lakh pieces per year. As a result, sales revenue will increase by about 24%, and profitability will increase accordingly. The new machinery will enable the company to sell its products at higher prices and retain better margins, the disclosure reads. According to its website, Rahim Textile Mills is a 100% export-oriented industry in the textile sector engaged in dyeing, printing, and finishing fabrics. The company has pioneered the printing of knit and other fabrics. The company was listed on the Dhaka Stock Exchange in 1988. On Thursday, its shares closed at Tk123.80 each on the country's premier bourse.
Source: TBS News
According to the statistical agency, in January-March 2024, Uzbekistan exported textile products worth $775.7 million. Compared to the same period in 2023, textile exports increased by US$247.4 million or 14.7%. Textiles account for 12.2% of total exports, up 0.9% year-on-year. The main share in exported textile products was occupied by finished textile products (37.7%) and yarn (46.8%).
In January-March 2024, textile products were exported to 55 countries.
Included in the export of textile products:
• yarn – $363.4 million;
• finished textile products – $292.5 million;
• knitted fabric – $69 million;
• fabrics – $39.3 million;
• hosiery – $11.5 million.
Source: Kun UZ
