The Union Textiles Ministry is planning to unveil a new initiative to promote innovation and entrepreneurship in the technical textiles sector. As part of the National Technical Textiles Mission (NTTM), the ministry plans to provide grants of up to Rs 50 lakh each to 150 start-ups engaged in the production of technical textiles, such as Kevlar, Spandex, Nomex, and Twaron, reported Mint. The funding, amounting to Rs 375 crore for the fiscal year 2024-25, is part of the government's broader strategy to position India as a global leader in technical textiles. The ministry has also relaxed the royalty cap on this scheme, allowing start-ups to retain a larger share of their profits without having to pay a percentage as royalty to the fund provider. Technical textiles, which include products like personal protective equipment (PPE) kits, masks, safety gear for firefighters and construction workers, among others, have diverse applications across sectors such as aerospace, defence, automobiles, healthcare, construction, and agriculture. The Indian technical textiles market, currently the fifth largest globally, stood at USD 21.95 billion in 2021-22, with production amounting to USD 19.49 billion and imports valued at USD 2.46 billion. The government aims to accelerate the growth of the Indian technical textiles market from the current 8-10 per cent per annum to 15-20 per cent over the next five years. The global technical textiles market was estimated at USD 212 billion in 2022 and is expected to reach USD 274 billion by 2027, growing at a compound annual growth rate (CAGR) of 5.2 per cent during the period, driven by increasing demand across industries and the rapid development of new applications. To avail the funding, start-ups will be required to deposit 10 per cent of the total fund allocation in advance. For instance, to receive Rs 50 lakh from the ministry, a start-up must deposit Rs 5 lakh of its own capital, which will not be deducted from the grant amount. The initiative has been welcomed by industry stakeholders, including Gaurav Duraisamy, Director, Tailor & Circus, a start-up manufacturing innerwear from eucalyptus tree fibres, who expressed interest in participating in the scheme. In addition to the start-up funding program, the government has launched a production-linked incentive (PLI) scheme for textiles, the PM MITRA Parks scheme, introduced quality control regulations, and developed over 500 standards to promote the technical textiles sector. Moreover, to safeguard against substandard imports, particularly from China, the government is planning to bring new quality control orders (QCOs) for textile products, including technical, protective, and build-tech textiles. These measures are seen as crucial as India negotiates free trade agreements with several countries, which will ultimately lower import duties on manufactured items.
Source: KNN
The Central Board of Indirect Taxes and Custom (CBIC) has come out with a draft Central Excise Bill, 2024, which seeks to replace the eight-decade old Central Excise Act, 1944. The move could pave the way for petroleum products to come under the ambit of Goods and Services Tax (GST). “The indirect tax apex body has released a draft of a new Bill. It aims to enact a comprehensive modern Central Excise law with an emphasis on promoting ease of doing business and repealing old and redundant provisions,” CBIC stated. At present, Central Excise is levied mainly on petroleum products. As a part of the pre-legislative consultative process, CBIC has sought stakeholders’ comments by June 26. The bill indicates the government’s intention to revisit the provisions of the existing Central Excise Act while also working on consensus for introducing GST on all products, including petroleum products, which are still not covered under the GST ambit, said Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India. The Bill comprises twelve chapters, 114 (one hundred and fourteen) sections and two schedules. The bill indicates the government’s intention to revisit the provisions of the existing Central Excise Act while also working on consensus for introducing GST on all products, including petroleum products, which are still not covered under the GST ambit, said Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India. The Bill comprises twelve chapters, 114 (one hundred and fourteen) sections and two schedules. The bill indicates the government’s intention to revisit the provisions of the existing.
Source: Business Standard
Reduced demand for yarn and low competitiveness in the international markets has forced spinning units in Madhya Pradesh to cut down output by more than 10 per cent. Low demand from textile units and a sharp decline in yarn purchase from China and Bangladesh has dampened cotton prices in the local market, claimed industry players. Manjeet Singh Chawla, owner of a spinning unit near Dhamnod said, “Demand for yarn has declined sharply and this has adversely impacted the market sentiment. Most spinning units have cut down on shifts and reduced production by over 10 per cent.” Chwala said the annual consumption of cotton in MP is around 27 lakh bales. Cotton prices in the spot market of MP is around Rs 54,000-55,000 per candy (1 candy is 356 kg each), said traders. They said low cotton prices have reduced the viability of spinning units in the market forcing several units in the state to cut down production. Spinners said rising input cost has also squeezed margins in the sector. Industry players said, the 45 days payment rule for Micro, Small and Medium Enterprises has also dampened the garment market. “Demand for garments has dropped. Mills have reduced purchases from mills on poor orders. Some improvement in prices is expected only when garment demand will improve,” said Animesh Bhargawa, cotton trader. Industry players expect an uptick in demand from the upcoming season starting July. The Cotton Association of India, an apex trade body, April estimate has put cotton pressing at Madhya Pradesh at 18 lakh bales (1 bale is 170 kg each) for the cotton year 2023-24 as against 19.5 lakh bales a year ago.
Source: Times of India
Narendra Modi's government is poised to begin its third term at a critical juncture for the Indian textile sector, which is currently facing multiple challenges that require immediate attention. Initial trends suggest that the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government will return to power. The textile industry has outlined a comprehensive set of priorities for the new administration, including SOS demands to boost sluggish exports and stimulate overall industry growth. Rakesh Mehra, chairman of the Confederation of Indian Textile Industry (CITI), told Fibre2Fashion, “The new government will have to take steps to support growth in the downstream industries of the textile sector. The fabric and garment industry should grow for the overall development of the textile industry.” He suggested that the government should relook its policy of quality standardisation of fibre and yarn. Quality control orders (QCOs) should be implemented on end-products like garments, home furnishings, and other textile products. Currently, India is losing the potential benefit of value addition in downstream industries as it has implemented quality standards on raw materials. Mehra stressed that downstream industries should have ensured availability of quality raw material at competitive prices so they can stay competitive in domestic and global markets. Mithileshwar Thakur, secretary general of the Apparel Export Promotion Council (AEPC), said that the new government should consider a new version of the production-linked incentive (PLI) scheme for MMF fabrics, MMF garments and Trims and Embellishments with lower investment threshold to enable smaller units to participate. He suggested that e-commerce could be a new driver for Indian textile exports, but it needs policy tweaking to align with specific requirements in e-commerce trade. Customs duty should be removed on textile machinery imports facilitate quicker and cost-effective modernisation of the industry. India also needs to ease and simplify processes and procedures for MMF fabrics imports to strengthen MMF apparel exports ecosystem in the country. The industry also needs support for skill development for workers in the industry. Ashish Gujarat, former president of the South Gujarat Chamber of Commerce and Industry (SGCCI), told F2F, "The new government should relook at its policy of quality control orders (QCO) on fibre and yarn. The Indian industry is losing value addition as they are not competitive against cheaper fabric and garments. The domestic industry immediately needs to focus on raw material of global standard at competitive prices." He said that the government should implement quality control orders on garments and other textile products. Gujarat also mentioned that micro and small industries need a Technology Upgradation Fund (TUF) scheme for the modernisation of the production process. The scheme was discontinued two years ago as the government was not in favour of providing capital subsidy for fixed investment. It floated the PLI scheme which is linked with production in the following years. Gujarat argued that at least ₹100 crore (~$11.99 million) investment is required in specific products of the MMF segment. Micro and small industries cannot invest such huge capital. The purpose of PLI is also different from TUF. The new government should come up with a new TUF scheme at least for micro and small industries as they are bigger job creators in the country. The Indian textile industry also expects an immediate extension of the interest equalisation scheme as it is going to end on June 30, 2024. The scheme was initially launched in 2015 and was extended from time to time. The government provides 3 per cent subvention to MSME exporters and 2 per cent for exporters in other eligible sectors. The industry also expects to raise the rate of subvention as the repo rate increased from 4.4 per cent to 6.5 per cent in the last few years. The Director General of Foreign Trade (DGFT) is also consulting industry bodies to improve the scheme as the Ministry of Finance is looking to improve the financial system for foreign trade so it can yield expected results in terms of higher exports of various products from India. A prominent Delhi-based trader from the yarn trade said that India could not improve its exports of textile products due to various reasons. The new government will have to move fast by policy intervention to drive Indian textile exports. Indian exporters are unable to export high-end textile products as they do not have enough infrastructure to tap potential markets. For example, India could not tap the Japanese market as Indian exporters are unable to meet the quality standards of Japanese importers. Indian products have to face competition from cheaper textile products of average quality exported from third-world countries. These nations are benefitting from cheaper labour and import-free market access in developed countries. A Ludhiana-based businessman said that the new government should finalise free trade agreements with Britain and the European Union as soon as possible. It will improve the competitiveness of Indian textile exports. The industry will have duty-free access to these promising markets.
Source: Fibre2fashion
The Netherlands has emerged as India's third largest export destination after the US and UAE during 2023-24, even as the country's merchandise shipments dipped by over 3 per cent, according to the commerce ministry data. The main commodities which registered healthy exports growth in the Netherlands include petroleum products (USD 14.29 billion), electrical goods, chemicals, and pharmaceuticals in the last fiscal. India's trade surplus with the Netherlands has increased to USD 17.4 billion in the last fiscal from USD 13 billion in 2022-23. The Netherlands has taken over major destinations such as the UK, Hong Kong, Bangladesh and Germany. India's exports to the Netherlands rose by about 3.5 per cent to USD 22.36 billion in 2023-24 as against USD 21.61 billion in 2022-23, the data showed. In 2021-22 and 2020-21, the outbound shipments to the European country stood at USD 12.55 billion and USD 6.5 billion, respectively. The exports have been registering healthy growth continuously since 2000-01, when India's exports to that nation were USD 880 million. Further, in 2021-22, the Netherlands was the fifth largest destination for Indian exports as against the ninth largest in 2020-21. According to trade experts, the Netherlands has emerged as a hub for Europe with efficient ports and connectivity with the EU through roads, railways and waterways. Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the trend of increasing exports would continue in the future also. Saraf said that the Netherlands is a gateway to Europe as its ports are very efficient. India and the Netherlands established diplomatic relations in 1947. Since then, the two countries have developed strong political, economic and commercial relations. In 2023-24, the bilateral trade between the two countries marginally dipped to USD 27.34 billion as against USD 27.58 billion in 2022-23. The Netherlands is among the top trading partners of India in Europe, after Germany, Switzerland, the UK and Belgium. It is also a major investor in India. During the last fiscal, India received about USD 5 billion in foreign direct investment from the Netherlands. It was USD 2.6 billion in 2022-23. There are over 200 Dutch companies present in India, including Philips, Akzo Nobel, DSM, KLM and Rabobank. Similarly, there are more than 200 Indian companies operating in the Netherlands, including all the major IT firms such as TCS, HCL, Wipro, Infosys, Tech Mahindra as well as Sun Pharmaceuticals and Tata Steel.
Source: Business Standard
Senior officials from the commerce ministry will participate in the two-day clean economy investor forum meet in Singapore, organised by Indo-Pacific Economic Framework for Prosperity (IPEF), an official said. Commerce Secretary Sunil Barthwal, Additional Secretary in the ministry Rajesh Agrawal, and other senior officers have reached Singapore for the meet, which will start on June 5. "Indian projects would be pitched in the forum. Over 150 investors would participate," the official said. The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in May 2022 and it currently includes 14 partners -- Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the US, and Vietnam. It provides a platform for countries in the region to collaborate on advancing resilient, sustainable and inclusive economic growth, and aims to contribute to cooperation, stability and prosperity in the region. The IPEF comprises four pillars of cooperation -- Trade, Supply Chain, Clean Economy, and Fair Economy. India is not part of the trade pillar. The IPEF Clean Economy Investor Forum is one of the initiatives under the IPEF. It brings together the region's top investors, philanthropies, financial institutions, innovative companies, startups and entrepreneurs. The forum aims to mobilize investments into sustainable infrastructure, climate technology and renewable energy projects. The Department of Commerce is the nodal agency for the IPEF engagements, and the IPEF Clean Economy Investor Forum is managed by Invest India, the country's national investment promotion agency. Apart from showcasing India's leadership position in the Clean Economy space and the various innovative solutions driving it, India will showcase some of the large infrastructure projects in Clean Economy and top climate tech companies to the global investors for investment opportunities. The forum will have an opportunity for the Indian industry in two tracks -- climate technology and infrastructure. Under the climate tech track, the forum would hold an open call that aims to recognise the top climate tech companies and startups among the member countries and present them to global investors.
Source: Business Standard
PETALING JAYA: The textile and tyre industries are among the major contributors of microplastics to the environment, says an academic. Universiti Sains Malaysia’s Applied Microbiology Professor Dr K. Sudesh Kumar said most of our clothes contain polyester, which is a type of plastic. “Every time we wash our clothes, large quantities of microfibres are released from the clothes. These microfibres then break down to microplastics.” He said the erosion of tyres also generates microplastics because synthetic rubber is difficult to be biodegraded. Our alarming plastic diet “Cosmetics and personal care industries use plastic microbeads for scrubbing effects and in various cosmetics formulations.” He said industries related to the production of single-use plastics also contribute to microplastics, aside from the paint industry, as well as slow-release fertilisers that are coated with porous plastic material. He said proper collection, segregation and treatment of waste plastic materials is important to minimise the creation of microplastics in the environment. Meanwhile, Sahabat Alam Malaysia (SAM) senior research officer Mageswari Sangaralingam said the results of cellular and animal experiments have shown that microplastics can affect the human body, including the digestive, respiratory, endocrine, reproductive and immune systems. She said microplastics can cause chemical toxicity, which involves the absorption and accumulation of environmental toxins, such as heavy metals and polycyclic aromatic hydrocarbons. Mageswari said microplastics in the respiratory system could cause oxidative stress in the airways and lungs when inhaled, leading to respiratory symptoms “These include coughing, sneezing and shortness of breath due to inflammation and damage, as well as fatigue and dizziness due to low blood oxygen concentration,” Mageswari said. She said to reduce microplastics in the environment, single-use plastic products should be avoided. She said there is a need to ban primary microplastics and intentionally-added microplastics in products. “Support measures to reduce the unintentional release of microplastics in the environment should be available,” she said. Unicef Malaysia Climate and Environment officer Jasmin Irisha Jim Ilham said the organisation supports the revision of modules under Iskandar Malaysia Ecolife Challenge (IMELC). She said this to create awareness of low carbon society (LCS) among students, teachers and communities. “For 2024, IMELC is introducing a new module on Combat Plastic Pollution, to be piloted in 40 primary schools in Johor.”
Source: The Star
The China-Bangladesh Free Trade Agreement (FTA) is essential for enhancing bilateral economic and trade relations, stated Chinese ambassador Yao Wen in Dhaka recently. Speaking at a seminar on the FTA at the Chinese embassy in Dhaka, Yao highlighted the agreement as a cornerstone for stable and healthy economic cooperation between the two nations. China has been Bangladesh's largest trading partner for 13 years, with bilateral trade reaching $24 billion in 2023 even if China's foreign direct investment (FDI) in Bangladesh totalled $3.2 billion by 2023, positioning China as the second-largest investor in the country. Additionally, Chinese enterprises have completed significant infrastructure projects in Bangladesh, including railways, roads, bridges, and power plants. The FTA encompasses trade in goods and services, investment, e-commerce, and hightech industry cooperation, providing a robust framework for future economic interactions. The Chinese ambassador emphasised that the current Agreement on the Encouragement and Reciprocal Protection of Investments, signed in 1996, no longer matches the deepening ties between China and Bangladesh while adding the new FTA aims to establish a comprehensive framework for sustainable and stable economic growth. According to a feasibility study, the FTA will significantly reduce tariffs on Chinese imports to Bangladesh, lowering import prices and alleviating inflation. In the long term, reduced raw material costs will enhance the competitiveness of Bangladeshi products in international markets, bolstering the country's foreign exchange reserves. The FTA will also streamline Chinese investments in Bangladesh, fostering job creation, industrial upgrades, and export diversification.
Source: Fibre2fashion
The proposed 2024-27 export policy mentions a total of 14 facilities for the textile and ready-made garment sector. These include- steps will be taken to increase competitiveness by reducing the lead time of export of ready-made garments in coordination with all relevant authorities. Starting from improving the working environment of garment factories, the risk of fire and building accidents will be reduced. Apart from this, initiatives will be taken to develop an integrated and rational compliance policy. In addition to increasing the efficiency and productivity of the workers and employees working in the garment industry, new technologies will be introduced. Organizing individual indigenous textile and readymade garment fairs to expand and consolidate the readymade garment market from sending marketing missions to potential destination countries. Besides, international fairs will be organized and participated. Besides, necessary steps will be taken to increase cotton production in the country to reduce dependence on imported cotton for export of readymade garments. Loans will be given on easy terms at low interest for setting up synthetic fiber based textile and garment industries as alternatives to cotton for diversification of readymade garments. At the same time, duty and tax exemption facilities will be provided. Other benefits mentioned in the textile and apparel sector include- Special emphasis will be given to backward and forward linkage industries to increase export capacity. Support will be provided in research and development activities to increase competitiveness. The Cabinet Committee on Economic Affairs (CCEA) on May 15 approved the draft Export Policy 2024-2027 with an export target of $110 billion in FY27. The list of beneficiaries under the proposed 2024-27 export policy includes – textile and ready-made garments sector, leather industry, jute and jute-based industry, primary agricultural products, fish and fishery products, tea industry, pharmaceutical industry and medical equipment, plastics and toys, shipbuilding industry, light engineering products, agro-processed products, herbal products, handicraft products and other sectors.
Source: Textile Today
ISLAMABAD: The country’s textile exports are projected to reach $16.64 billion by the end of the current fiscal year (FY24), a decrease of $2.68 billion (14%) as compared to the $19.32 billion achieved in FY22. However, this represents a one percent increase from the $16.51 billion in exports registered in FY23. The non-availability of the Regionally Competitive Energy Tariff (RCET) has resulted in a colossal loss of $2.68 billion to the country, a senior official from the Commerce Ministry told The News on Tuesday. The ministry is concerned that textile exports will not meet expectations by June 30, the end of FY24. In FY22, the sector enjoyed a power tariff of nine cents per unit and a gas tariff of $7.5 per MMBTU, which led to a significant growth in textile exports to $19.32 billion. However, the withdrawal of RCET has resulted in a projected decline in textile exports. This has led to the closure of 40-50% of industrial units in the country, causing widespread unemployment and a decline in exports. The Ministry of Commerce has written to the Power Division requesting the restoration of RCET to boost exports and encourage international buyers to expand their sourcing from Pakistan. The letter highlights that the industrial sector is currently providing a cross-subsidy of Rs222 billion in the power sector and Rs100 billion in the gas sector to domestic consumers. If this cross-subsidy is withdrawn, the energy tariff for the industrial sector will become competitive with regional economies like India, Bangladesh, and Vietnam, making Pakistan’s export products more competitive in the international market.
Source: International News
