Synopsis India has signed a 10-year contract to operate the strategic Iranian port of Chabahar, which will help India enhance its logistical capabilities and expand its trade routes to Central Asia. The port, which is Iran's only ocean port, is strategically located about 170 km west of Pakistan's Gwadar Port and offers an alternative maritime route to the congested Strait of Hormuz. The port is an integral component of the International North-South Transport Corridor (INSTC), a 7,200-km multi-modal transportation route connecting India with Iran, Azerbaijan, Russia, Central Asia, and Europe. The development of Chabahar Port will help India enhance its logistical capabilities and expand its trade routes to Central Asia and for that there is a need to ensure necessary infrastructure, and processes to effectively manage the cargo flow at the port, economic think tank GTRI said on Tuesday. The Global Trade Research Initiative (GTRI) suggested that the government stick to the fact that the Chabahar Port is not under international sanctions despite being Iran's only ocean port as despite the strategic advantages, the project's success is intricately tied to the complex geopolitical environment it operates within. India on Monday signed a 10-year contract to operate the strategic Iranian port of Chabahar. The long-term agreement was signed by Indian Ports Global Ltd (IPGL) and the Port & Maritime Organisation of Iran. IPGL will invest about USD 120 million while another USD 250 million will be raised as debt. The Chabahar port on the Gulf of Oman, which New Delhi had proposed to develop back in 2003, will provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called International North-South Transport Corridor, bypassing Pakistan. US sanctions on Iran over its suspected nuclear programme had slowed the development of the port. "India should ensure that Chabahar has the necessary infrastructure, processes, and staffing to effectively manage the cargo flow. Yet the overarching stability required for such grand-scale projects remains a significant challenge due to external political pressures and regional instabilities," GTRI Co-Founder Ajay Srivastava said. He added that the development of the port is a testament to India's strategic foresight in enhancing its logistical capabilities and expanding its trade routes to Central Asia and beyond. According to the GTRI, Chabahar Port, comprising the Shahid Kalantari and Shahid Beheshti terminals, is strategically located about 170 km west of Pakistan's Gwadar Port. It offers an alternative maritime route to the congested Strait of Hormuz. Chabahar is also an integral component of the International North-South Transport Corridor (INSTC), a 7,200-km multi-modal transportation route connecting India with Iran, Azerbaijan, Russia, Central Asia, and Europe. This corridor aims to reduce transit times to about 25 days -- 20 days fewer than the Suez Canal route -- and cut freight costs by 30 per cent. Commenting on the signing of the 10-year contract, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the port provides strategic advantages to India through diversification of trade routes providing access to Afghanistan, Eurasia, Central Asia, and Europe being integral part of INSTC. "The INSTC envisages the movement of goods from Mumbai (India) to Shahid Beheshti Port Chabahar (Iran) by sea, from Chabahar to Bandar-e-Anzali (an Iranian port on the Caspian Sea) by road, and then from Bandar-e-Anzali to Astrakhan (a Caspian port in the Russian Federation) by ship across the Caspian Sea, and after that from Astrakhan to other regions of Russia and further into Europe by Russian railways," Sahai said. He added that the strategic location of Chabahar has a "great" advantage for developing it as a transhipment hub. "The Port's deep draft of 16 m is suitable for handling large shipment vessels. The Port lies close to some of the busiest trade routes in the world: the AsiaEurope, Asia-Asia trade route, which carries large cargo volumes. "The movement of cargo through this route is expected to save cost by 30 per cent and transportation time by 40 per cent, ensuring quick turnaround at competitive cost," he added.
Source: The Economic Times
Synopsis Financial incentives like tax breaks and subsidies can boost the adoption of green manufacturing practices. Experts emphasize the need for sustainable supply chains and investments in energy-efficient technologies. Companies are increasingly focusing on sustainability, with Indian firms leveraging sustainable loans and investing in recycling. Providing financial incentives, such as tax breaks, and subsidies, for companies that invest in sustainable technologies and practices can help accelerate the adoption of green manufacturing practices, experts say. They also said there is an increasing emphasis by businesses to ensure sustainable practices through their supply chains. "This requires companies to improve their sustainability operation through responsible procurement, investment, energy transition, recycling, financing etc," Hi-Tech Gears Chairman Deep Kapuria said. He also said that today, sustainability is at the core of business strategy for corporates across all sizes and sectors. "Indian companies are also taking advantage of the lower interest rates on sustainability-linked loans to fund their expansion plans. Further, large Indian companies are also investing big in recycling the waste," Kapuria added. Anup Garg, Founder and Director of WOCE- World of Circular Economy, said that manufacturers are increasingly investing in energy-efficient technologies and renewable energy sources to reduce their carbon footprint. This includes the adoption of LED lighting, energy-efficient HVAC (Heating, ventilation, and air conditioning) systems, and renewable energy installations like solar panels and wind turbines. Garg said that the governments can support sustainability in manufacturing through regulatory frameworks, incentives, public private partnerships and awareness. "Providing financial incentives, such as tax breaks, grants, and subsidies, for companies that invest in sustainable technologies and practices. This can accelerate the adoption of green manufacturing practices," he said. He added that WOCE offers expert advisory and consulting services to help manufacturers develop and implement comprehensive sustainability strategies. "This includes setting realistic targets, creating action plans, and integrating sustainability into core business operations. These services ensure that manufacturing processes are optimized for sustainability, leading to reduced environmental impact and enhanced regulatory compliance," he added.
Source: The Economic Times
Synopsis Export orders up 10% in EU, West Asia, US driven by leather goods, footwear, apparel demand in India. Challenges for engineering goods due to geopolitical tensions. Increase in apparel orders from UK and demand for non-leather footwear. Positive impact of trade pacts with Australia and Mauritius. Market recalibration after inventory decline, logistics issues, and geopolitical tensions. Improved demand in the European Union, West Asia and the US has boosted export order books by at least 10% from six months before, companies said, signalling a possible recovery from last year. Leather goods, footwear, and apparel are driving demand but engineering goods shipments for new projects are facing a challenge due to geopolitical tensions, exporters said. "Overall, compared to the last six months, the order position has improved 15- 20% for leather footwear especially from the US and partially Europe," said Rafeeq Ahmed, chairman, Farida Group, one of India's largest shoe manufacturers and exporters. "The demand for non-leather footwear is also coming up." India's total goods exports in FY24 fell 3.1% to $437 billion from $451 billion in the previous fiscal. Apparel exporters cited an increase of over 10% in orders starting February, mostly from the UK, US and the EU. "The decline in demand has slowed and there are obvious signs of improvement. Industry has an ambitious target of $20 billion apparel exports in FY25," said Mithileshwar Thakur, secretary general, Apparel Export Promotion Council. He said India's free trade pacts with Australia and Mauritius have also had a positive impact. India exported apparel worth $14.5 billion in FY24. Ahmed said the inventory decline in India's key markets is driving demand. A Gujarat-based apparel exporter who did not want to be identified said there has been a 20% increase in new inquiries, clientele and conversion of inquiries to orders since February. "While logistics issues are still causing a problem, there is a recalibration of the market after six quarters of issues such as inventory pile up in the US, besides the Ukraine and Israel wars and demand slowdown," he said. "Buyers have a better liquidity position for the upcoming sales season compared to last year and they are using that to fill their shelves." Rupee based trade will also help increase volumes to Russia, he said. Ludhiana-based engineering exporter SC Ralhan has seen a 10% growth in the order book since December, especially for hand tools, fasteners, agricultural parts and forging. "There is good growth mostly in the US and Europe... Inquiries have risen 5%," he said. Many exporters have managed to pass on higher freight charges due to the Red Sea crisis to their clients. "We're seeing a 10% improvement in engineering goods exports like scaffolding but among the markets; there is no improvement in Europe," said Sharad Kumar Saraf, founder chairman of Techno craft Industries India, a manufacturer and exporter of engineering goods and textiles. A Kolkata-based engineering goods exporter said, "Exports to the European market are affected. While 40% engineering exports are for maintenance, 60% exports are for new projects that will get impacted. We expect a 30-35% reduction on new project exports." Federation ofIndian Export Organisations (FIEO) director general Ajay Sahai said that the demand scenario is better than six months back and there is a 15% improvement, especially in apparel and footwear.
Source: The Economic Times
The Indian textile industry is working an action plan that will look at what the industry can achieve by 2047, according to Rakesh Mehra, chairman of the Confederation of Indian Textile Industry. “Despite recent challenges, we are committed to fostering innovation, sustainability, and inclusive growth within the sector,” he said in a press release. Though the sector had a lacklustre performance in the recent months, both in the domestic and export markets, Mr. Mehra said what was important now was collaborative action. “The textile industry has faced challenges on multiple fronts, including geopolitical uncertainties, shifting consumer preferences, and stiff competition from other sectors. However, there is a collective sense of urgency to reverse this trend and propel the industry towards a brighter future,” he said. Measures such as exempting inputs from mandatory Quality Control Orders (QCOs) would lay the foundation for the industry to achieve $ 100 billion exports by 2030. The recent India-European Free Trade Association (EFTA) Agreement would offer better market access and foster growth opportunities. Continuation of schemes such as the PM Mega Integrated Textile Region and Apparel Parks, the Production Linked Incentive scheme, and the Scheme for Capacity Building in the Textile Sector would catalyse investment and capacity building within the industry. As the industry awaited the new government’s policy directions, it would focus on innovation, sustainability, and inclusive growth, he said.
Source: The Hindu
Tipu Sultan may be known for his valour, tiger stripe motifs, expansion of Lal Bagh, patronage of Channapatna toys and the development of rockets, but there is another thing this now-controversial figure hasn’t been given enough credit for – the growth of the Mysore silk industry.
Vibrant sericulture industry
Tipu sent emissaries to China and Oman to collect silkworms, thereby kickstarting a vibrant sericulture industry in Karnataka, says Suresh Jayaram, who was part of a recent panel discussion in the city, a panel that included Archana Hande and Jeevan Xavier “Tipu has a very important role to play in textiles,” says Suresh, a Bengaluru-based artist and art historian. “He was someone who was a modernist, and he brought the material culture into Mysore,” he adds at the session titled Knots, Loops, Tangles: Exploring Bengaluru through Textiles, part of City Scripts, an annual urban writing festival organised by the Indian Institute for Human Settlements (IIHS). Besides Tipu’s contribution to the industry, the discussion revealed various aspects of the history of textiles in Bengaluru. Among the many important events that were discussed was the genesis of the Tata Silk Farm in the 1890s in the Chamrajpet area. “The industry benefited from the Tata silk farm,” says Suresh, pointing out that this changed the very nature of the industry. “It was no longer a small-scale industry. Silk was here to stay,” he says, before delving into a fascinating account of how silk, woven in Bengaluru for parachutes, was repurposed into wedding gowns that were worn across the world.
A global commodity
But then again, silk has always been a global commodity, a point that was reiterated by Archana who spoke about the silk route, perhaps the earliest global trade route in history. Silk, she points out, was synonymous with China, which had been growing it for centuries and supplying silken thread worldwide. “Tipu brought the secret from there,” she says. She also discussed the Jacquard loom and its impact. “Silk was no more of an exclusive material because of Jacquard. Even a middle-class person could buy it,” says Archana, who admits that she does not see the romance of handloom compared to the power loom. “The weaving technique was the same. Power loom helped the weavers (since they could scale up production),” she argues.
City’s evolution
At the event, the panelists highlighted how slow the technological growth within the industry is and how weaving skills are in constant danger of going extinct. They also explored how the textile tradition played a significant role in shaping the city’s evolution―its impact on war, migration, urban planning and the economy. “The first and second population spurt in Bengaluru was due to textiles,” believes Jeevan, pointing out that though the city is today called Silicon Valley, it was a textile town after agriculture died out. “Everything came from the fertile ecosystem it provided.”
Source: The Hindu
The rupee was trading in a narrow range and appreciated 4 paise to 83.47 against the US dollar in early trade on Wednesday, tracking a positive trend in domestic equities. However, sustained foreign fund outflows weighed on the local unit and restricted the up move. Forex traders said with foreign investors buying US dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias.
At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.49 against the American currency and touched 83.47 in initial trade, registering a rise of 4 paise from its previous close. On Tuesday, the rupee closed at 83.51 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.93, lower by 0.07 per cent. Brent crude futures, the global oil benchmark, rose 0.69 per cent to USD 82.95 per barrel. Despite the marginal increase, crude prices have retreated from their elevated level of USD 84 per barrel. "The decrease in oil prices is poised to positively impact India's trade balance, given that 25 per cent of its total import expenditure is attributed to petroleum product imports. Consequently, the lower oil prices are expected to alleviate pressure on the trade deficit, offering a favorable economic outlook," CR Forex Advisors MD Amit Pabari said. Further, Pabari said that with this the rupee is expected to appreciate as this will reduce the pressure on the domestic currency. On the domestic equity market, the 30-share BSE Sensex was trading 115.03 points, or 0.16 per cent higher at 73,219.64 points. The broader NSE Nifty was up 53.00 points, or 0.24 per cent, to 22,270.85 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 4,065.52 crore, according to exchange data. On the macroeconomic front, wholesale inflation rose to a 13-month high of 1.26 per cent in April fuelled by rising prices of food articles, especially vegetables, amid expectations of RBI holding interest rates in the policy review next month.
Source: Business Standard
Apparel and textiles manufacturer and exporter Shahi Exports has partnered with Taiwan based business Little King Global. As part of the joint venture, Shahi Exports will manufacture synthetic performance textiles for sportswear from its new plant in Shimoga, Karnataka. “This is an important step for us to expand our footprint and focus on enhancing our product portfolio,” said Shahi Exports knits division CEO Ramalingam T in a press release. “Our partnership with Little King Global is not just a venture but a commitment to our customers, assuring them access to the very best in class when it comes to synthetic fabrics. Our goal is continual improvement and relentless focus on product development as we continue growing and increasing the scale of operations. We also aim to contribute toward boosting employment generation across the country.” Production at the Shimoga plant is set to be fully operational by the end of the year. The facility will have an initial production capacity of 500 tonnes per month and this will be increased to 1,000 tonnes per month. “Our mission is to be a world-class partner in supplying sustainable, functional fabrics for brand customers,” said Little King Global’s vice president Bruce Liao. “Shahi is well known for its ESG framework, worker well-being initiatives, and innovation in the textile and apparel industry. With the global supply chain shift and the rise of India’s manufacturing trend, we should leverage the best resources from advanced technologies, economical production, and talent for our Shimoga plant. Once the plant is operational, we will offer recycled, responsive, and resilient services for our valued customers.” Sarla Ahuja establishes Shahi in 1974 and today the business counts three fabric processing mills and more than 50 apparel manufacturing facilities spread across eight Indian states. The business has a workforce of over 96,000 individuals across its vertically integrated operations.
Source: Jara News
The Nigeria Customs Service (NCS) recently signed a memorandum of understanding (MoU) in Shenzhen with China’s General Administration of Customs (GACC) to enhance trade and economic growth. Nigeria’s comptroller general of customs (CGC) Adewale Adeniyi visited Shenzhen last week. GACC vice minister Wang Lingjun and signed the MoU from China’s side. “The relationship will create a cooperative mechanism for NCS and the GACC to collaborate on supply chain security standards and enhance the economic stability of both nations,” Adeniyi was quoted as saying by a post on X (formerly Twitter) by NCS. “We know a lot of Nigerian companies and SMEs [small and medium enterprises] take advantage of the opportunities aided through e-commerce,” he said.
Source: Fibre2fashion
A BAMBOO textile hub is likely to be established in Vintar town, Ilocos Norte. The Department of Science and Technology Region 1 (DoST-1), through the Provincial Science and Technology Office-Ilocos Norte (PSTO-IN), has already convened with Vintar Mayor Richard Degala to discuss the establishment of a bamboo textile hub and to explore opportunities for assistance through science, technology and innovation (STI) in various sectors. Present during the meeting held on April 15, 2024 were Dr. Teresita Tabaog, DoST-1 regional director; Brian Rasco, supervising SRS of PSTO-IN; Gerald Gabriel, senior SRS of PSTO-IN; Sheeren Engada, SRS 1 of PSTO-IN; Mayor Degala; Maricel Serano, municipal agriculture officer of Vintar; and Jogie Jimenez from the provincial government of Ilocos Norte ENRO. Tabaog provided insights into the requisites for setting up the bamboo textile hub and explained its purpose and potential impact. Once operational, the hub's output would find a market through DoST-PTRI, offering a promising income-generating opportunity for the people of Vintar.
Source: Manila Times
The Italian Trade Agency (ITA) decided to participate in the ITM 2024 Exhibition this year with the Italian pavilion. Italian textile machinery manufacturers, which are leaders in the global textile industry, will mark on the ITM 2024 with their innovative technologies focusing on energy consumption, efficiency, sustainability and digital transformation. Machinery Exhibition is preparing to host textile technology leaders in Istanbul on June 4-8, 2024. ITM 2024, which will be organized this year with the motto ‘Discover the Future’, will offer unmissable opportunities for those who want to discover the latest innovations in the sector, establish new business contacts and shape the textile world of the future together. The products to be exhibited at ITM 2024 Exhibition, which will bring together nearly 1300 domestic and foreign companies, will meet with thousands of qualified buyers and professional visitors.
They Will Showcase the Versatility of ‘Made in Italy’ Technology at ITM 2024
International sector associations, representatives and government institutions also support the ITM 2024, which is expected to break new records with both the number of participants and visitors and million-euro machine sales. One of them is; The Italian Trade Agency (ITA) is the governmental agency that supports the business development of Italian companies abroad and encourages the attraction of foreign investments to the country. ITA has decided to participate in the ITM 2024, which will be held at Tüyap Fair and Congress Center, as a pavilion. Turkey is among the most important markets of Italian textile machinery manufacturers. Turkey became the largest foreign market in 2022, leaving China behind in Italian textile machinery exports. Italy’s textile machinery exports to Turkey increased by 15 percent, reaching 309 million euros. With this decision, ITA took as part of the strategy aiming to further strengthen its presence in the sector and in Turkey; It also revealed the unity of the Italian textile machinery industry and the support it gives to the Turkish market. Companies that will take their place in the Italian Pavilion; They will have the chance to showcase the versatility of ‘Made in Italy’ technology and interact directly with global customers. “We are happy to host Italian Textile Machinery Manufacturers in the Pavilion” The organizers of ITM Exhibition, Tüyap Tüm Fuarcılık Yapım A.Ş. and Teknik Fairs Inc., made a joint statement about this important development and expressed their excitement. The following statements were made in the explaining: “We are satisfied to welcome the Italian textile machinery manufacturers who will participate in ITM 2024 as a pavilion. This pavilion will offer visitors the opportunity to closely follow the latest developments of Italian textile machinery manufacturers and discover these innovative technologies.”
Source: Textile World
Power solutions provider and manufacturer Quality Energy has completed the installation of a 1 MW rooftop PV system that will provide almost 30% of the annual energy demand of a textile mill at Wangaratta in regional Victoria. Melbourne-headquartered Quality Energy confirmed the 1 MW rooftop system is now fully operational and helping to power operations at Bruck Fabrics’ Australian Textile Mills (ATM) at Wangaratta in Victoria’s northeast. The project, financed through a five-year power purchase agreement (PPA) with Victoria-based commercial and industrial solar specialist Green Peak Energy, comprises 1,851 Risen solar panels (540 W) and nine 110 kW inverters supplied by Sungrow. The system, deployed across three buildings at the ATM site, is expected to generate 1,313 MWh of clean energy annually and offset more than 1,000 tonnes of carbon emissions per year. Quality Energy said the system, tailored to mitigate the impact of rising commercial energy costs, is expected to provide 28% of the mill’s annual energy demand. Bruck Textiles Chief Executive Officer Sandip Ranjan said the rooftop system is part of an $8 million decarbonisation strategy the company is pursuing as it seeks to mitigate the high energy demands of textile manufacturing. Ranjan said it is unlikely the operation will achieve net zero because of the energy intensive nature of the industry, but the company is determined to do what it can. “We are already investigating the possibility of installing battery energy storage,” he said, adding that the company will also explore the potential to increase the size of the solar system. Quality Energy said the ATM system is the biggest rooftop system it has installed to date. The company said it has installed more than 4 MW of solar and has more than $35 million worth of quotes to convert.
Source: PV Magazine
