New Delhi: Indian exporters have sought priority shipment facilities for local micro, small and medium enterprises (MSME) as transhipment of Bangladesh's export cargo to third countries through the Delhi Air Cargo complex is causing delays, inflating freight expenses. The Noida Apparel Export Cluster (NAEC), where 80% of the apparel production and export units are MSMEs, has sought a 25% quota for such units in the cargo with priority in shipment. Air freight has quadrupled in the past two months, say exporters. Last year in February, India allowed the Delhi Airport to act as a cargo transhipment hub between Bangladesh and other export destinations, thereby expanding the existing transhipment policy through the Kolkata Air cargo complex. "The cargo slots at Delhi Airport are swamped with Bangladesh shipments, resulting in their exporters benefitting at the cost of Indian exporters," said Lalit Thukral, President NAEC. After the Red Sea crisis, a lot of traffic has shifted to the air mode. Items such as leather goods, which were conventionally not shipped by air, are now being transported via flights, pushing up air freight. The cargo that cost ₹35 per kg to be shipped to Europe via air three months ago, is now being shipped at ₹140 per kg. "India has given transit facility to Bangladesh export cargo from Delhi Airport besides Kolkata. Simultaneously, air freight has also increased because of the geopolitical situation including Red Sea crisis. We have taken this up with commerce department as it has led to delay in export cargo particularly of MSMEs due to space constraints , on some of the busy routes, in regular flights," said Ajay Sahai, director general, Federation of Indian Export Organisations. The Apparel Export Promotion Council has sought suspension of the transshipment facility to Bangladesh. "Textile exporters in Bangladesh already receive several benefits such as subsidies from the government and have preferential treatment under the free trade agreements. The transhipment policy has further compounded the situation for Indian exporters," added Thukral.
Source: The Economic Times
Indian garment exporters are looking forward to a potential free trade agreement (FTA) with the United Kingdom to boost shipments after textile exports declined for the second consecutive year. Readymade garment exports to Mauritius and Australia, which recently signed FTAs with India, jumped 16.8 per cent and 5.7 per cent, respectively, in the first eight months of the current fiscal year (April-February 2023-2024) compared with the same period last year. Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), said, “The success of the recently concluded FTAs with Mauritius and Australia bodes well for a potential deal with the UK, which currently accounts for 8 per cent of India’s apparel exports.” India’s textile and apparel exports have fallen by 3.24 per cent in 2023-2024 and 16.3 per cent in 2021-2022 compared with the previous year. To address this decline and achieve the target of $40 billion in garment exports by 2030, the AEPC is implementing a multi-pronged strategy. It plans to participate in 17 international trade fairs globally, focusing on emerging markets such as Saudi Arabia, Poland, Mexico, and South Africa. The association also plans to host the second edition of “Bharat Tex”, an exhibition showcasing Indian textile and garment capabilities, to increase outreach to potential buyers. Rohit Kansal, additional secretary of the ministry of textiles, stressed the importance of closer collaboration between manufacturers and brands. “Stronger engagement will build trust and ensure compliance with international standards,” he said. Shubhra, trade adviser in the ministry of textiles, highlighted the need for capacity expansion.
Source: Telegraph India
Trade and Economic Partnership Agreement (TEPA) with European Free Trade Association (EFTA), holds strategic significance for India, as it is the first agreement with a European block. EFTA has committed to promoting investments with an aim to increase the stock of foreign direct investments by $100 bn in next 15 years, observes Apparel Export Promotion Council. India is negotiating trade agreements like never before. With better strategic negotiations and diplomatic engagements towards addressing non-tarif barriers in these agreements will further ease down restrictions for Indian exporters and will thus open new avenues for the textile products, says Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry (CITI), in an exclusive interview with Bizz BuzzConsidering India’s economic interests, what potential benefits does it anticipate from signing a free trade agreement with the European Free Trade Association (EFTA) particularly focusing on textile investments and export growth in the textile industry? The Trade and Economic Partnership Agreement (TEPA) with the EFTA countries is a significant step towards boosting India’s textile trade with those countries. Switzerland and Norway imported apparel worth $14.2 billion in 2022. The agreement holds strategic significance for India, as it is the first agreement with a European block. Also Read - L&T Technology Services targets $1.5 bn revenue run rate in FY25 Under TEPA, EFTA has committed to promoting investments with an aim to increase the stock of foreign direct investments by $100 billion in the next 15 years, which is also likely to generate 1 million employment opportunities in India. This is the first-of-its-kind happening under any of India’s trade agreements. India and EFTA countries, particularly Switzerland complement the needs of each other in the Textiles and Apparel (T&A) space. Switzerland can be a good supplier of specialized yarns, Textile Technology, and Machines to India which in return can offer raw materials and intermediate products to be converted into high-quality and sustainable end-products. Since the majority of the trade in this region is through Switzerland, considering the potential in trade and investment, The Confederation of Indian Textile Industry (CITI) and Swiss Textiles (an important member of the Swiss National Association of textiles and apparels), signed an MoU in November 2023 to promote bilateral trade and investment and engage in product-specific B2B interactions, knowledge sharing, & capacity building, etc. based on the respective core competencies of both countries. Also Read - Think outside the bin: The story of how one person made recycling rewarding In this context, CITI also led a delegation to Techtextil 2024, Germany, from April 23 to 26, 2024. The CITI delegation actively participated in a series of engagements, especially with textile companies and associations in Switzerland. It offered insights into the latest innovations and developments in the textile industry, fostering networking and knowledge-sharing opportunities among industry leaders of both countries. In this context, CITI also led a delegation to Techtextil 2024, Germany, from April 23 to 26, 2024. The CITI delegation actively participated in a series of engagements, especially with textile companies and associations in Switzerland. It offered insights into the latest innovations and developments in the textile industry, fostering networking and knowledge-sharing opportunities among industry leaders of both countries.
The recent free trade agreements with the United Arab Emirates, Australia, and the EFTA bloc, do they contribute to India's overall textile trade strategy and economic goals? UAE, Australia, and EFTA are important trade blocks for India’s Textiles & Apparel (T&A) industry. Each of these countries has unique importance for the Indian T&A industry. UAE is the 4th largest market for India’s T&A products. At present India is exporting about $2.1 billion worth of T&A products to the UAE which is about 20 per cent of the UAE’s total T&A imports from the world. With the India-UAE CEPA in place, the trade of T&A between the two countries is likely to increase in the coming years. Similarly, Australia is also one of the important markets for T&A products. After the India-Australia Economic Cooperation and Trade Agreement (ECTA), India’s T&A exports to Australia are definitely going to increase. However, import is also an important aspect of this ECTA. The Indian cotton industry is dependent on the imports of specialized varieties of Australian cotton due to nominated business and non-availability domestically. Their businesses were hit after the imposition of import duty on cotton during the Budget 2021. However, the duty-free imports of Australian cotton with a TRQ of 51000 MT have provided big relief to the Indian cotton industry. Similarly, the trade pact with EFTA holds promise for the Indian textile industry, offering access to advanced markets, technology, and opportunities for growth and innovation. An important expectation from this FTA is an increase in FDI in innovation and new generation products. The Global Trade and Research Initiative (GTRI) report says that India’s textiles and garments exports have declined over the last five years by 7.6 per cent to $34.24 billion in the calendar year 2023 from $37.16 billion in 2018, with China, the EU, Bangladesh, and Vietnam dominating the global garments trade. From 2018 to 2023, India saw a 25.46 per cent increase in textile and garment imports, indicating a domestic demand unmet by local production. What are the key reasons behind India’s declining textile and garment exports over the past five years, as highlighted by the GTRI? If we look at year-on-year data, there has not been a consistent decline in India’s exports. During these periods, the world has witnessed different challenges such as Covid-19, the Russia-Ukraine ongoing war, US inflation, etc., which have affected the global demand for textiles & apparel. In fact, it was during this period only in 2021 when India achieved its highest-ever export of $41.5 billion which was a testimony of India’s stronghold in the global Textile & Apparel arena. However, we are concerned about the shrinkage in the export market and stagnation in the domestic market. While it is a global phenomenon During the last 5 years, several significant policy measures have been announced for the textile industry particularly export-related measures such as Rebate of State and Central Levies and Taxes (RoSCTL), Remission of Duties and Taxes on Exported Products (RoDTEP) and flagship schemes like Production Linked Incentive Scheme (PLI), Pradhan Mantri Mega Integrated Textile Region and Apparel (PM-MITRA). Moreover, the Government has signed multiple trade agreements with major markets like Australia, UAE, EFTA, and trade negotiations with countries like EU-27, Canada, Peru, UK are going on. It would not be wrong to say that in the last few years, the Government has paid special attention to the textile sector based on its importance for exports as well as employment generation. All these policy measures clubbed with the inherited strength of the Indian textile sector are likely to pave the way for India to emerge as the major player in the global T&A arena and India will surely achieve the T&A export target of $100 billion by 2030 or before. What steps do you suggest to enhance the competitiveness of India’s textile and garment industry, particularly in promoting the production and export of synthetic apparel and strengthening the weaving and processing sectors? India is a major exporter of textile & apparel products to the world. One of the important requirements of enhancing competitiveness is the availability of raw materials at internationally competitive prices. To improve the quality of the textile products, the Government has come up with mandatory Quality Control Orders, particularly to the man-made fibre (MMF) raw materials (fibre and yarn). While the industry is trying to adapt to the QCOs, its implementation has resulted in the disruption of the MMF value chain, not only in terms of pricing, but also in terms of the availability of raw materials in the required quality and quantity, especially for those specialized varieties for which India is majorly dependent. It might result in the increased import of products next in the value chain i.e. fabric and apparel which will hurt the domestic industry. To avoid such a situation, the Government may consider imposing QCOs through a more gradual process to ensure no supply disruption. Further, technological advancement and economies of scale are other important aspects for increasing the cost competitiveness of the Indian T&A products. To achieve the same, the Government may consider the early announcement of the Alternate Scheme to Technology Upgradation Fund Scheme (TUFS) as also PLI 2.0 with a lower investment threshold and wider product coverage. It will bring the much-needed investment in technology and infrastructure which will be the key in transforming the Indian T&A industry into a competitive entity on the global stage. How can Indian exporters adapt to the demands of the fast fashion industry, and what role do negotiations of non-tariff barriers in free trade agreements play in this context? There’s a rising demand for sustainable, ethical, and responsible products and production material. Brands aspiring to meet the expectations of a growingly conscious consumer need not just reputational risk management through better compliances, but also meet aspirational environmental standards. These expectations call for improved environmental and social footprints, leading to a greater emphasis on sustainable materials, production methods, and waste and pollution reduction. While India has a good ecosystem for sustainable fibers, plant-based fibers, increasing use of renewable energy in energy-intensive processes, increasing investment in energy-efficient technologies, there is still a technology and capacity gap in the requirements from some of our importing country requirements which can limit our market access to these countries in the coming years. India is negotiating trade agreements like never before. With better strategic negotiations and diplomatic engagements towards addressing non-tariff barriers in these agreements will further ease down restrictions for Indian exporters and will thus open new avenues for the textile products. Collaborative efforts towards capacity building of the manufacturers, better institutional mechanisms for fast responses to new requirements as also new opportunities through better material management, etc., can help India further strengthen its position as a responsible supplier. In what ways can India diversify its textile and garment exports to better compete with major players like China, the EU, Bangladesh, and Vietnam in the global market? At present India’s export of T&A is mainly dominated by Cotton and its blends. Trade analysis shows that during 2022-23, Cotton accounted for about 55 per cent of India’s Textile & Apparel exports, while MMF accounted to only about 30 per cent. However, this trend is just opposite to what Indian competitors like China, Bangladesh, etc., are supplying to the world. Today, most formal, sports and fashion wear uses synthetic fabrics. They are more durable, and allow easy blending and experimentation with other fibers. It will not be wrong to say that synthetics have overtaken cotton and become favorites of the fashion industry. Thus to have the larger share of the pie, there is a dire need for India to diversify its product basket by focusing more on MMF and its blends rather than focusing only on cotton. While schemes like PLI will surely help in increasing India’s share of MMF-based T&A products, the FTAs can also be leveraged for easier access to the raw material required for product diversification as also enhance FDI and investment in the development of indigenous capacities for manufacturing of these. With India becoming the fastest-growing economy, and the cost of labor and raw material increasing consistently, the only way to move forward is value-added growth through more niche and specialized products, growth in technical textile products in the area of medical textiles, geotextiles, industrial wear, high altitude garments.
Source: Bizz Buss
Century Textiles and Industries Ltd, the 127-year old company which now belongs to Aditya Birla Group, is set to have a new identity. The company disclosed in a regulatory filing that its board of directors have approved a proposal to ``change the name of the company to such suitable name as may be available and approved by the Ministry of Corporate Affairs”. The memorandum of association and articles of association will be amended to give effect to the change in the name. Century Textiles, which was founded by the Wadia family of Bombay Dyeing before it rolled into the Birla fold shortly after India’s independence, added that the change of name will be subject to the approval of its shareholders and other applicable statutory authorities as may be required. While the textile business was at one point in time a key revenue earner for the company, which was once spearheaded by legendary Ghanashyam Das Birla, the land that housed the mill at Worli in Mumbai has been redeveloped for real estate. For the quarter ended March 31, 2024, revenues from textiles stood flat at ₹12.49 crore against the corresponding quarter in the previous year, while ₹859.07 crore (₹909.85 crore) came from pulp & paper. Revenues from real estate jumped to ₹92.16 crore from ₹36.12 crore in the year-ago period. Century ventured into the real estate sector in 2016 under Birla Estates. While the real estate segment does not match up to the revenue from paper as of now, it perhaps holds the most promising prospect. In an investor presentation submitted on Tuesday, Century pegged the gross development value of ongoing projects at ₹13,000 crore and forthcoming projects at ₹32,000 crore. About 60 per cent of that is going to be located in Mumbai. Century, which was passed on to Kumar Mangalam Birla from the grandfather Basant Kumar Birla, son of G.D Birla, is not the first to monetise its age-old land holding. The Wadia family and Godrej family have aggressively entered real estate, building initially on the legacy land holding and then expanding to new locations.
Source: Telegraph
Synopsis India's transition to digital payments is effectively curbing the traditional outflow of currency from its banking system, as evidenced by the sharpest decline in the growth of currency in circulation (CIC) since demonetisation in FY24. The Reserve Bank of India's (RBI) decision to phase out Rs 2,000 banknotes from circulation last year further contributed to this trend. India’s leap to digital payments is structurally tamping down on traditional currency leakage from its banking system, with growth of currency in circulation (CIC) in FY24 declining the most since demonetisation. The Reserve Bank of India’s (RBI) withdrawal of Rs 2,000 banknotes from circulation last year also contributed, triggering a flood of currency deposits close to the recall deadline and lowering growth in CIC by `1 lakh crore. The demonetisation in FY17 sought to replace more than four-fifths of notes by value. “Over the last few years, a steady reduction in currency leakage is being seen with the rise of electronic payments, especially the Unified Payments Interface (UPI),” said Gaura Sengupta, chief economist at IDFC First Bank. “In FY24, currency in circulation was higher by Rs 1.4 lakh crore, which is significantly lower than Rs 2.4 lakh crore in FY23, due to the rise of UPI payments and the Rs 2,000 note withdrawal,” said Sengupta of IDFC First Bank. CIC Growth Slowing Steadily Central bank data showed CIC growth has fallen steadily over the past three years, while the volume of transactions using UPI and other digital platforms — such as the National Electronic Fund Transfer (NEFT) — has soared. In April this year, UPI transaction values were at `19.6 lakh crore, nearly 40% higher than `14.1 lakh crore the same time a year ago, data published by the National Payments Corporation of India (NPCI) showed. Meanwhile, NEFT, which is run by RBI, has registered growth of 700% in volume terms and 670% in value terms from 2014 to 2023, the central bank said. On February 29, NEFT processed 41 million transactions in a single day, a record high, RBI said earlier.
This year, while currency leakage began to pick up in January, February, and March — ahead of the Lok Sabha elections — the numbers have trended lower in April, RBI data showed. In the first month of the current financial year, the increase in currency in circulation was at `50,800 crore, down from `59,400 crore a month ago and sharply lower than `76,800 crore a year ago. STRUCTURAL SHIFT “The usage of electronic systems over a longer period of time should help lower the usage of hard cash. This is a more structural story, which will have an impact over multiple years,” said Namrata Mittal, chief economist at SBI Mutual Fund. “There has been lower CIC withdrawal in FY24. A part of it could also be because of the fact that right after Covid, CIC withdrawals were slightly above trend. I would still attribute it in a large portion to the discontinuation of `2,000 notes,” she said.
Source: The Economic Times
Synopsis India progresses negotiations for trade settlement in rupees post-elections, aiming to become a major manufacturing hub. Home Minister Shah criticizes opposition states for misusing relief funds. The nation's economic growth trajectory is highlighted amidst global recognition. Gandhinagar | New Delhi: India is in the "final stages" of negotiations with many countries to work out the modalities of settling trade in Indian rupees, Union home minister Amit Shah told ET in an exclusive interview, adding that this will be a major priority of the new government. "Matters have been put on hold due to elections but let me tell you we are in the final stages in our negotiations with many countries. This will be a priority for us in days to come," he said in a detailed interview on board his flight back.
Source: The Economic Times
The Sixteenth Finance Commission has invited suggestions from the public and interested organisations on the panel’s terms of reference and the general approach that it may adopt, a press statement said on Wednesday. The commission, chaired by Arvind Panagariya, is required to make its recommendations covering a period of five years starting April 1, 2026 with respect to the distribution of the net proceeds of taxes between the Centre and states and the allocation between the states of the respective shares of such proceeds. The commission would also recommend principles which should govern the grants-in-aid of the revenues of the states out of the Consolidated Fund of India and the sums to be paid to the states by way of grants-in-aid of their revenues under Article 275 of the Constitution.
Source: Business Standard
The team from the Presidential Advisory Committee on Exports and Industrial Development (PACEID), which was tasked with increasing Uganda’s current export earnings by another $6b by 2028, was led by the senior presidential advisor on special duties, Odrek RwabwogoOur team had a wonderful and challenging visit to the Kamhing Textile Company of Guangzhou last week. This is what full integration of the value chain looks like, at least from the fabric side. It doesn’t have the seeds and what else comes from cotton, but it does the job in textiles,” Rwabwogo said on X, formerly known as Twitter, on May 7, 2024.
PACEID, which was commissioned by President Yoweri Museveni in March 2022, identified 13 key exports that will be targeted for aggressive growth in production and revenue over the next five years. These are coffee, sugar, grains, fruits and vegetables, poultry (meat), tourism, beef, dairy, cement, steel, fish, banana flour, and flowers/plant materials.It said all these 13 are exports where Uganda has sufficient comparative advantage in target markets that if grown, sustainable industries and manufacturing structures can develop around each, creating employment and driving the national economy.
Source: MSN
‘Sourced: Sri Lanka’ is an all-new fashion and textile trade show “set to showcase the very best of Sri Lankan sustainable and ethical manufacturing”. The two-day show (17-18) will be held at The Royal Horticultural Hall in London running 9am-5pm. Attendees will experience “product, innovation, fabric and accessories from some of the best manufacturers the country has to offer, showcasing what makes Sri Lanka market leaders in manufacturing”. Over 50 manufacturers are set to attend, showcasing collections of clothing, accessories, textiles and packaging “all highlighting the diverse range of product capabilities from Sri Lankan manufacturers”. The event, in collaboration with the Sri Lanka Apparel Sourcing Association (SLASA) and Export Development Board (EDB) of Sri Lanka, “shines a spotlight on the steps being made to instil a powerful sustainability ethos in the Sri Lankan fashion and textiles industry”, they said Alongside the exhibitors, there will be guest speakers, catwalk shows and networking opportunities, they added. Wilhelm Elias, chairman of SLASA, said: “The Sri Lankan apparel industry has made significant strides in sustainability, focusing on various initiatives to ensure environmentally friendly practices. “A combined focus on ethical manufacturing, green initiatives, zero-carbon factories, renewable energy, and biomass and solar energy has resulted in a revolutionary approach that has positioned the manufacturers behind Sourced: Sri Lanka as pioneers in the global market.”
Source: Fashion Network
The president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), SM Mannan (Kochi), expressed confidence in meeting the $100 billion apparel export target by 2030. However, he emphasised the need for alternative government support in place of cash incentives post-2026, as Bangladesh will graduate from the Least Developed Countries (LDC) status by then. The BGMEA chair made these remarks recently during a recent visit to pay homage to Bangabandhu Sheikh Mujibur Rahman at his mausoleum in Tungipara, in Gopalganj. Highlighting Prime Minister Sheikh Hasina’s efforts towards financial stability and poverty alleviation, Mannan affirmed the BGMEA’s commitment to ensuring a better life for every citizen, in line with Bangabandhu’s vision.He reiterated this stance while emphasising the present BGMEA board’s dedication to this cause. The BGMEA president urged collective efforts to realise Bangabandhu Sheikh Mujibur Rahman’s vision of ‘Sonar Bangla’, envisioning a prosperous ‘Smart Bangladesh’ by 2041, as envisioned by the Prime Minister. Various prominent ex-BGMEA officials also attended the event.
Source: Fibtr2fashion
