India and the European Union (EU) will discuss the Product Specific Rules of Origin (PSRs) during the forthcoming 8th round of negotiation for a free trade agreement (FTA) between the two sides. Both sides have already completed discussion on several issues in the previous seven rounds of negotiations. Ahead of the 8th round, Manmade And Technical Textiles Export Promotion Council (MATEXIL, formerly SRTEPC) has invited views of all the stakeholders in the Indian textile sector on the Product Specific Rules of Origin (PSRs). MATEXIL has issued a list of textiles and textile articles falling under Chapters 50 to 63, requesting its members to provide inputs on the matter. It has also provided details of textiles and textile articles falling under the said chapters and its viewpoints on these products. The council has said in a letter sent to its members that India has been negotiating with EU to have a beneficial FTA. “The proposed 8th round of negotiation will be held shortly. As we understand, this will be a breakthrough FTA providing Duty Free Market Access for Indian textile products in the UK markets,” MATEXIL said to its members.
During the forthcoming 8th round of negotiation, among other subjects, PSRs will also be discussed. Product Specific Rules means the rules that specify that the non-originating materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy qualifying value content criterion, or a combination of any of these criteria. The Department of Commerce, Ministry of Commerce and Industry has sent a list of tariff lines seeking inputs on the PSRs proposed by the EU. In this regard, the Council has made an exercise to prepare a list of draft PSRs. The council has requested its members to give their valuable inputs for the PSRs on the tariff lines of manmade and blended textiles covered under Chapters 54 to 63. The inputs will be accepted by the council till June 6, 2024.
Source: Fibre2fashion
The government needs to expand the production-linked incentive (PLI) scheme and develop an ecosystem to realise the goal of making India a global drone hub, a report said on Tuesday. An incentive of Rs 120 crore spread over three financial years was provided for Indian manufacturers of drone and drone components under the PLI Scheme notified on September 30, 2021. As per the Ministry of Civil Aviation projections, the Indian drone manufacturing industry is expected to reach Rs 900 crore by 2025 from just Rs 60 crore in 2020-21, according to a study conducted by Nexgen Exhibitions. It also noted that the Indian drone market is expected to grow at 22.15 per cent CAGR (compounded annual growth rate) during the 2024-30 period. With innovation and expansion of its application portfolio, India has the potential of becoming the global drone hub by 2030, it stated. The study highlighted that the key to realising India’s vision lies in boosting the domestic drone ecosystem. Other major factors are the expansion of the PLI scheme, government procurement, and pushing the Make in India initiative, it stated. The application of drones is already proven in the fields of Border Surveillance, Rescue Disaster Management, and COVID management etc. The drone services industry’s operations in logistics, data processing, and traffic management etc are far bigger in scale and will outshine the other related sectors very soon, the report highlighted. Around 250 drones and unmanned systems manufacturers, anti-drone radar, guns and jammers innovators, component, wires, motors, sensors, CCTV suppliers, software developers for drones and unmanned systems, drones as service providing companies, GPS and Geospatial solutions providers participated in the survey. Institutes developing drones, defence research labs manufacturing drones, and aerospace companies like flight control, and simulator developers were also part of the survey. The survey was conducted across 10 states – Uttar Pradesh, Madhya Pradesh, Delhi, Haryana, Rajasthan, Punjab, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh. The survey also reached out to foreign companies from the Middle East, Europe, the UK, the US and Australia. International Drone Expo 2024 is a premium expo for drones unmanned systems (land and water), counter drones, LiDAR geospatial, artificial intelligence and air taxi. It is one of Asia’s biggest drone sector platforms for buyers, industry representatives and stakeholders from across the board to connect. The focus this year would be on UAVs (Unmanned Aerial Vehicles), drones and anti-drone systems for various applications. “The industry is definitely getting a huge boost because of the Make in India movement and the visionary PLI Scheme of the government. Innovations and technological advancements done by Indian Drone Companies have caught the attention of the global markets and growth in the Indian drone industry is attracting significant foreign investment,” Aadhar Bansal, Director of Nexgen Exhibitions, said in the statement. The Indian government’s increased efforts through the implementation of liberal policies and other initiatives, including Drone Shakti, a production-linked incentive scheme, increased air space, and others, are all collectively supporting the market’s growth, the statement said.
Source: CNBC
Synopsis The commerce ministry has developed a draft comprehensive strategy for future Free Trade Agreements (FTAs). The draft will reviewed by key departments, aiming to streamline negotiation processes with India's trading partners. The strategy, presented during a recent meeting involving trade experts, aims to ensure thorough analysis, background work, and systematic reporting throughout negotiation phases. Discussions at a recent 'Chintan Shivir' in Rajasthan also covered topics like India's trade strategy, including new issues like labour and environment in FTAs. The commerce ministry has prepared a draft comprehensive strategy for negotiating future Free Trade Agreements (FTAs) and it will be circulated to certain key departments soon to get their feedback, an official said. The draft strategy in the form of a Standard Operating Procedure (SOP) was recently discussed in a meeting involving former commerce secretaries, senior officers from different ministries and international trade experts. The aim is to streamline the FTA negotiation processes as several trading partners of India are coming forward for trade pacts. This SOP is designed to ensure thorough analysis, meticulous background work, and systematic reporting throughout the negotiation phases, the official said adding it would also include structured interactions with various ministries and stakeholders both before and after negotiation rounds. "Our SOP draft is ready. We have presented that in the meeting and now some more improvement is required. It will be circulated to core ministries in about a month," the government official said. It was discussed during a two-day 'Chintan Shivir' on May 16-17 at Neemrana, Rajasthan. "What should be our strategy going forward? Should we do more FTAs" How to identify FTA countries. What should be our views on new issues like labour, and environment? We have made an internal SOP so that when we negotiate an FTA then what should be the process, what kind of analysis should be there, what kind of background work, research, and what kind of reports should we make after every round of FTA talks," the official said. After doing several agreements, "now we have got this experience, we want to codify that," the official added. In the Chintan Shivir, various other issues were also discussed, including India's trade strategy and vision 2047; economic assessment and modelling of FTAs; inclusion of new disciplines into FTAs such as labour, environment, gender, and indigenous people; services and digital trade. A separate session was also organised on leveraging India's FTAs to address new forms/kinds of measures like CBAM (Carbon Border Adjustment Mechanism), supply chain disruptions, critical minerals, and artificial intelligence. India is negotiating trade pacts with the UK, the EU (European Union), Peru, and a comprehensive trade deal with Australia. It is also in talks with the Eurasian Economic Union for a trade agreement. India's goods and services exports in 2023-24 reached an all-time high of USD 778.2 billion, up 0.23 per cent from USD 776.4 billion in 2022-23. The country has inked trade pacts with Mauritius, the UAE, Australia and the European Free Trade Association (EFTA) since 2021.
Source: The Economic Times
The government is planning to introduce Quality Control Orders (QCOs) targeting 11 key textile products in the build tech category, two people aware of the matter said, to step up safety standards of clothing used by workers and professionals in the construction sector. These QCOs are specifically designed to elevate the quality and performance of fabrics used in protective clothing, as well as in scaffolding nets, ropes and tarpaulins. The move is part of the government’s effort to limit dumping of cheap products from China and help India improve its position in the global manufacturing and supply chain through a focus on quality control. Enhancing protection The implementation of the proposed QCOs will significantly increase the protection of workers in the construction industry and reduce the risk of injuries and accidents. “The key objective behind introducing QCOs for build tech textiles is to provide quality products for workers and reduce the mishaps at construction sites," the first person said, adding it will improve the quality of products and put a check on import of substandard products. Following the notification of the QCO, manufacturers of all such goods will be required to meet the standards set by the Bureau of Indian Standards (BIS). Failure to comply will attract hefty penalties. The QCOs are expected to be notified soon. QCO is a regulatory mandate issued by the government to ensure that certain products meet specific standards of quality and safety. These QCOs are enforced by the BIS, an arm of the consumer affairs ministry. “Technical textiles are designed for performance rather than aesthetics. Products such as ropes, scaffolding nets, tarpaulins, and other similar items must meet specific technical specifications, including load-bearing capacity, to ensure they function effectively and safely in their intended applications," the second person said. Advocates for the rights of construction workers do not see any improvement in safety concerns following the repeal of the Building and Other Construction Workers’ Act. This Act included comprehensive safety and security provisions for construction workers. Seeking Act's restoration “The government should focus on restoring the Building and Other Construction Workers’ Act, 1996 that was repealed without making any adequate provision in the labor codes. In this situation, we are demanding the restoration of the Act, and if anything is to be done, it should be done under that Act and not separately. Only then will the government’s proposed QCOs be helpful for workers," National Campaign Committee for Construction Labour (NCCCL) coordinator Subhash Bhatnagar said. Queries emailed to the textiles secretary, spokesperson of textiles ministry, Director General of BIS remained unanswered. India is the world's third largest exporter of textiles and apparel and ranks among the top five global exporters in several textile categories, with exports expected to reach $65 billion by FY26. After a QCO is notified, no firm can manufacture, import, distribute, sell, hire, lease, store or exhibit any product covered under the QCO without an ISI standard mark and violations can attract jail terms and fines.
Source: Mint
Once a new government is formed, more industrial sectors may see liberalisation in foreign direct investment (FDI) norms and the industry should prepare itself for a lower tariff regime in the long run, according to Rajesh Kumar Singh, secretary in the department for promotion of industry and internal trade (DPIIT). “While doing so, you have every right to expect that any distortionary in any inversion in those taxes in our tax regimes should be corrected,” Singh told the Confederation of Indian Industries (CII) annual business summit. “DPIIT is doing a cross-sectoral study to ensure that both in the GST [goods and services tax] Council and the finance ministry, we try to rationalise it and show that those inversions are removed as to improve the competitiveness of our manufacturing sector,” he said. “Recently, we delivered on liberalising our FDI norms in space, and it is quite possible that under a new government, we can attempt some further liberalisation of any pockets that are left,” he was quoted as saying by domestic media reports. However, he did not disclose the sectors that could see liberalisation in FDI norms. While the Production-Linked Incentive scheme has led to investment flows, there could be other ways to attract funding without budgetary outlay, he said. Non-tariff policies like quality control orders are being used to boost investment and exports, he added.
Source: Fibre2fashion
The proposed India-UK free trade agreement is hopefully not far on the horizon as it will offer immense opportunity to be leveraged within the bilateral partnership, said the new chair of a trade council that has played a key role in shaping the ongoing negotiations. UK-based tech professional Priya Guha, who invests in women-led innovation as Venture Partner of Merian Ventures, took over as chair of the Federation of Indian Chambers of Commerce and Industry (FICCI) UK Council from Baroness Usha Prashar at a hand-over ceremony at the High Commission of India in London on Monday evening. The India-UK Free Trade Agreement (FTA) negotiations opened in January 2022 and are aimed at significantly enhancing bilateral trade – currently worth around GBP 38.1 billion a year. The negotiations are now in their fourteenth round of talks, and likely to pick up pace following the Indian general election. Guha, the British Indian investor, expressed the hope that the bilateral partnership would continue to flourish as she looks to build on the foundations laid by Prashar, who was the first to take on the role at FICCI UK four years ago. “I take this on thinking about the role of research and innovation in the creative industries, the trade partnership and the opportunities that will be leveraged when we’re able to have the FTA in place, which we all hope is not far away on the horizon,” said Guha. “The reality is that these things only do happen because we are able to work in partnership with so many people as we transition into this new phase of the India-UK Industry Advisory Group.” “One role of business is to make a concrete contribution to economic growth on both sides and clearly, we have that in the India-UK relationship. But, actually, the role of business is so much more – to open our eyes to other things, to build cultural ties, to strengthen relationships, to deepen a very strong bond and take that to the new stage of its potential,” she said. The event at India House in London was organised to felicitate Prashar for her relentless work over the years in promoting India-UK trade and cultural ties, including through an FTA memorandum on non-tariff barriers that fed into the policy framework. “We managed to establish a very dynamic and energetic council and establishing it was a masterstroke,” said Prashar in her farewell address, as she traced the genesis of FICCI to Mahatma Gandhi’s vision of the ethics of “business with purpose.” “As we look towards an FTA, there will be a great deal to do to give it effect. The devil is always in the detail and to make things work, FICCI will play a very significant role as and when the FTA happens,” she said. The Indian High Commissioner to the UK, Vikram Doraiswami, led tributes to the House of Lords peer as the first Indian-origin judicial commissioner of the UK and someone who has been a “part of the very fabric” of the UK. “If we have been successful in the last several months in getting things inch forward in the dial that is the bilateral relationship, a fair bit of the credit, which has never been asked and never been given, I think goes to Baroness Prashar,” said Doraiswami. “As and when the free trade agreement gets signed, FICCI will continue to help leverage all the potential that lies unlocked because there is a huge opportunity for a forwardlooking India-UK relationship that is based on at least three key pillars of research and innovation, education and capacity building, and trade opportunities,” he added.
Source: Indian Express
Synopsis The government, led by Vivek Joshi, addresses concerns around GST levy on co-lending arrangements with NBFCs, raising issues of distortion and increased lending costs. Banks, tax authorities, FIDC, MFIN, CRISIL, partner banks discuss the growth of colending model, NBFCs' loan book reaching ₹1 lakh crore. New Delhi: The government has assured non-banking financial companies (NBFCS) that it will examine the concerns around levy of goods and services tax (GST) on their co-lending arrangements with banks. A clarification could be issued after the issue is looked into, officials said. At a meeting with finance ministry officials last week, banks and NBFCs raised the issue of GST authorities serving notices, saying it would lead to distortion and raise the cost of lending for the companies. They said they have received queries and, in a few cases, notices, to determine whether GST has been evaded in the co-lending model, with the tax authorities claiming it is a service provided by one co-lender to another, attracting 18% tax. The industry maintains that co-lending is not a service and therefore is not liable to tax. The meeting, chaired by the Department of Financial Services secretary Vivek Joshi, was attended by representatives of banks and NBFCs and representatives from the Finance Industry Development Council (FIDC) and Microfinance Institutions Network (MFIN). The FIDC had earlier sought clarity from the government on the issue. "Banks and NBFCs raised their concerns regarding GST on the co-lending arrangement as many have received communication in this regard from the Directorate General of GST Intelligence," a senior executive, who attended the meeting, said on condition of anonymity, adding that the officials assured that they would look into the matter. Under a co-lending arrangement, usually two or more lenders come together to extend loans. The model has gained popularity as banks have access to new customers while NBFCs get cheaper funds and also a share in the loan book. According to a latest report by rating agency CRISIL, the co-lending book of NBFCs is expected to reach ₹1 lakh crore by June 2024, amid growing interest from partner banks.
Source: The Economic Times
Synopsis Kyrgyzstan and India promote investments in various sectors, amidst ties strengthening and cultural collaborations. Bishkek's focus on economic growth and bilateral relations stands out amidst recent tensions. The potential in textiles, hydropower, tourism, and the need for enhanced banking connections are key highlights. Kyrgyzstan and India are united by ancient, rich history and traditional values and Bishkek is keen to encourage Indian investments in agriculture, textile, hydel power and pharmaceutical sectors, country’s Ambassador to India Askar Beshimov has told ET in the backdrop of Pakistan’s attempts to paint Indian students as victims of riot over the last weekend. “The long history of our cultural interaction testifies to the deep ties between the peoples of our countries, which are becoming even stronger every year… Kyrgyzstanis love Indian cuisine, watch Indian films, more than 17000 students from India are studying in Kyrgyzstan,” Beshimov said. “We resumed regular flights on the Bishkek-Delhi-Bishkek route. The flight time between the capitals of our countries takes only 2 and a half hours. An protected areas, manuscripts, etc. through joint archaeological research,” the envoy informed Beshimov said that Kyrgyz authorities are taking strong action against the groups who provoked the situation. “I would like to underline that the Ministry ofInternal Affairs detained the perpetrators of the incident that occurred on May 13 and are now carrying out operational actions.” Referring to the potential for Indian investors in the Central Asian state, Beshimov said, “…In agricultural sector the Kyrgyz Republic can meet all the requirements for the production of ecologically clean agricultural products. It is very pleasing that the export of agricultural products of the Kyrgyz Republic to India has been growing in recent years. “The textile and clothing industries are the most developed in the light industry of Kyrgyzstan. The domestic market of Kyrgyzstan is small, therefore the light industry of the Kyrgyz Republic is export-oriented. More than 90% of light industry products labeled "Made in Kyrgyzstan" are exported to Russia and Kazakhstan. I would underline that this sector has very huge potential for further development.” “Our country has a great potential for hydropower, which is 142 billion kWh per year. Currently, only 10% of this potential is being used. Given the global trend towards clean energy sources, we urge all partners to explore and invest in the hydropower potential of the Kyrgyz Republic. So, this sector has vast possibilities for foreign investors,” the envoy informed. facilities. Huge opportunities for organizing ecotourism, mountain tourism, mountaineering, hunting and other types of outdoor activities. We have visa free regime for Indians with EU, USA or British visas. It should be mentioned that one of the benefits of Kyrgyzstan is cheap prices.” Few months ago, Kyrgyz government established the state enterprise “Kyrgyzpharmacy”. Representatives of the state-owned enterprise have already visited India several times to establish contacts and made contracts for direct supplies of pharmaceutical products. “I believe that in the near future India will become one of the main suppliers of pharmaceutical products.” “But for making good business we need direct correspondent relations between Kyrgyz and Indian banks. Moreover, as I have mentioned, we have 17 thousand Indian students, and about 200 medical tourists from Kyrgyzstan come to India for medical surgery and recovery every year. And all of them have to carry cash money because our banks don’t have direct correspondent and p2p relations,” the Ambassador noted.
Source: The Economic Times
Ahmedabad: chief minister Bhupendra Patel inaugurated the Fabexa Fabric Sourcing Expo 2024 in Gandhinagar on Tuesday. It aims to bolster Ahmedabad’s position as a major cotton and natural fabrics manufacturer for both the national and international markets. Sanjeev Chaturvedi, vice-president for domestic marketing in Reliance Industries Ltd’s textiles division, said, “Gujarat has a strong base in the textile industry. In India, the share of the organized sector in the textile industry is low and needs to increase. Bangladesh has strong base in garment making, but India is far ahead in fashion and Indian manufacturers have great opportunities in the global market.” Gaurang Bhagat, president of Maskati Cloth Market Mahajan, which has organized Fabexa, said the ninth edition of the four-day expo attracted more than 100 exhibitors and will draw an expected 10,000 buyers from across the country. The organizers have invited all national textile associations. Naresh Sharma, secretary of Maskati Mahajan, said Ahmedabad has strengthened its position in the shirtings, dress materials and bedsheets segments. He believes the expo will generate fabric orders for the coming festival season. The city has also seen significant adoption of digital printing machines, which will benefit the local industry in securing orders from across the country.
Source: Times of India
Surat (Gujarat) [India], May 22: Surat hosted the fourth edition of the two-day Yarn & Jari Textile Expo-2024, organized by the Secure Embroidery Thread & Jari Association (SETJA) on May 19 and 20. The event saw participation from over 100 exhibitors from various states across India, including Punjab, Maharashtra, and Tamil Nadu. These exhibitors showcased a diverse range of imitation jari and yarn products, highlighting the innovation and craftsmanship in the industry. Textile and Railway Minister Darshanaben Jardosh inaugurated the expo, emphasizing the need to position jari in the international market. She stressed the importance of exploring new uses for jari as a raw material and assured the industry's stakeholders of the government's support in resolving any developmental issues. Jardosh's vision is to expand the market and make Indian jari a globally recognized product. On the second day, Dr. Gyanvatsal Swami, a renowned saint and corporate guide, graced the event with his presence. He emphasized the power of unity in business, stating, "Unity is Prosperity." He encouraged industry players to work together to achieve success on a global scale, highlighting that integrity and unity are critical tools for business success. Several other dignitaries attended the event, including Mukesh Dalal, Member of Parliament from Surat; Daxshesh Mavani, Mayor of Surat; C.K. Maniya, President of the Rapier Jacquard Weavers Association; Dr. Haresh Balar, Vice President of the Rapier Jacquard Weavers Association; Ashok Jirawala of FOGWA; Kailash Hakim, President of FOSTTA; and office bearers from the Southern Gujarat Chamber of Commerce and Industries. The expo attracted around 37,000 buyers, reflecting significant interest in the jari and yarn products displayed. Among the special attractions at the exhibition were innovative products like the Babboo yarn jari, developed by Mahendra Zadafiya, founder of ADLON Industry. This product, made from bamboo after extensive research, stands out as a notable innovation from India. Another highlight was the launch of Multi Jari by K-TEX Jari, adding a unique category to the multi jari field. SETJA President Dipakbhai Kukadiya highlighted the association's commitment to business development and the global reach of their products. He expressed the vision of making Surat a central hub for global buyers seeking high-quality jari and yarn products. Kukadiya also emphasized the importance of reducing dependency on China, aligning with Prime Minister Narendra Modi's 'Make in India' initiative. He reiterated the goal of re-establishing Surat's jari industry on the global stage. The success of the exhibition was also attributed to its sponsors, including title sponsor Pareshbhai Lathiya, founder of Aaradhana Jari; gold sponsor Vikas Sharaf, owner of VPLUS; and Kapil Goyani, director of Shiv Hari Processors Pvt Ltd. Their support played a crucial role in the event's smooth execution and success. The imitation jari industry in Surat is a significant sector, with an annual market size of approximately Rs. 1,500 crore. The Yarn & Jari Textile Expo-2024 not only showcased the industry's current capabilities but also highlighted the potential for future growth and innovation, setting the stage for Surat to regain its historical prominence in the global jari market.
Source: The Week
The Ministry of Industry (Kemenperin) said the textile and textile product (TPT) industry is one of the leading manufacturing sectors to increase foreign exchange and the national economy. Acting (Plt) Director General of Chemical, Pharmaceutical, and Textile Industries (IKFT) of the Ministry of Industry, Taufiek Bawazier, in West Bandung Regency, West Java, Tuesday, May 21, said the reason the TPT sector became a leading industry was because the contribution generated from the textile product had increased compared to last year. His party noted that in the first quarter of 2024, the textile industry began to show significant performance improvements. This can be seen from gross domestic product (GDP) experiencing growth of 2.64 percent on an annual basis (year on year/yoy). "Quartal to Quartal experienced an increase of 5.92 percent compared to the fourth quarter of 2023 which experienced a contraction of minus 1.15 percent," he said, quoted from Antara. He further said, TPT sector exports also experienced an increase of 0.19 percent or 2.95 billion US dollars in the first quarter of 2024, whereas in that period the global market situation was still uncertain by geopolitical uncertainty. Meanwhile, textile industry realization experienced an increase for investment in foreign investment (PMA) of 70.2 percent with an investment value of 194.3 billion US dollars. Previously, the Ministry of Industry (Kemenperin) released exports of textile fabric products produced by a company from West Java, namely PT Mahugi Jaya Sejahtera, with a transaction value of 350 thousand US dollars. The export indicates an annual sales commitment of 5 million meters from related companies, as well as opening up Indonesia's non-traditional market to countries in the central eastern region. Meanwhile, the national garment and textile markets in the central eastern country are expected to continue to grow significantly for the next 5 years, with an annual growth projection of 7 percent which has a fashion market value of 89 billion US dollars.
Source: Voi.id
AMMAN — His Majesty King Abdullah on Tuesday met with representatives of the textile industry at Al Husseiniya Palace and affirmed the importance of the sector in providing employment, enhancing economic growth and increasing exports. The meeting was held to follow up on the progress of developing the textile industry in line with the Economic Modernisation Vision, according to a Royal Court statement. Discussions covered ways to boost vocational education in order to provide the sector with qualified workers, as well as boost training programmes for workers in the industry and build their capacities, the statement said. The textile sector contributes JD756 million to the gross domestic product, and textile products account for 20 per cent of industrial exports, with exports worth JD1.4 billion annually.The sector employs 89,000 workers, 31 per cent of whom are Jordanians.Prime Minister Bisher Khasawneh and Director of the Office of His Majesty Jafar Hassan attended the meeting.
Source: Jordan Times
Bandung, West Java (ANTARA) - Indonesia's Ministry of Industry released the export of domestic textile fabric products manufactured by PT Mahugi Jaya Sejahtera to Dubai, with a transaction value of up to US$350 thousand.
"I appreciate the steps taken by the company to export the textile products to Dubai and some other Middle Eastern countries, marked by the release of three containers of fabric," the ministry's acting Director General of the Chemical Industry, Pharmaceuticals, and Textiles (IKFT), Taufiek Bawazier, stated at the send-off ceremony in West Bandung on Tuesday. According to Bawazier, this export indicates an annual sales commitment of five million meters from the company as well as opening up non-traditional Indonesian markets to countries in the Middle East region. Bawazier remarked that the garment and textile market in the Middle East region is expected to continue to grow significantly over the next five years. With a projected annual growth of seven percent, the value of the fashion market reaches US$89 billion. Currently, Indonesia's allocation of textile and clothing exports to the region is only 5.4 percent of the total exports of textiles and textile products (TPT), or worth US$753 million, with a market share of only 1.5 percent, he noted.
This figure is far below market shares of China and India, at 38.3 percent and 21.4 percent respectively. Hence, the exports carried out by one of the Indonesian companies could be a pioneer in increasing the exports of domestic textile products, he disclosed. The Ministry of Industry stated that the textile and clothing industry grew expansively on an annual basis year-on-year (yoy) in the first quarter of 2024, with values of 5.90 percent and 2.64 percent respectively, due to high export demand. This expansive increase also supported the contribution of the processing industry to economic growth, namely 19.28 percent yoy, or an increase from the same period in 2023, with only 18.57 percent yoy.
Source: Antara
Challenge Fashion (Pvt) Ltd, a Chinese textile company, has acquired 100 acres of land in Lahore, Pakistan’s emerging economic hub, with an aim to develop a Special Economic Zone (SEZ) for a textile park. The company plans to commence the construction of an export-based garment factory after completing a 3-kilometer access road from the main highway to the proposed site of a textile park. “The factory infrastructure is expected to be built within 12 months,” stated an official from Challenge Fashion in an interview with Gwadar Pro. The garment factory is expected to help Pakistan earn 500 million US dollars in foreign exchange and create 30,000 jobs each year. Challenge Fashion (Pvt.) Ltd plans to invest 150 million US dollars over the next 3-5 years. If everything progresses as planned, it is expected to attract an additional investment of 100 million US dollars in supporting industries. The official mentioned that acquiring high-quality fabrics is a significant challenge. Currently, more than 80% of the surface accessories are imported, which substantially hinders the company’s pace of expanding its industrial scale. “The company plans to develop the park into the most innovative and sustainable textile industry base in South Asia, showcasing China’s park design concept and construction standards to Pakistani counterparts. This will promote the most efficient and environmentally friendly automated fabric production equipment and garment production systems, and spread modern production management science,” the official added. The official also stated that the establishment of a supply chain cluster would help improve Pakistan’s labor structure and management. “We hope to demonstrate China’s industrial park standards to our Pakistani counterparts by creating a Chinese-regulated industrial park project,” the official said. “We aim to enable Chinese enterprises interested in an overseas layout to see Pakistan’s investment potential and also provide project landing sites for SMEs so that they can fully benefit from the preferential investment policies provided by the Pakistani government,” the official asserted. The official further explained that “the tariff-free treatment of textiles exported to the EU, combined with China’s Free Trade Agreement, can guarantee the price competitiveness of Pakistani products.Pakistani fabrics exported to Africa or Jordan can enter North America without tariffs, and the route is much shorter than from East Asia.”
Source: Daily Times
