New Delhi : Bharatiya Janata Party leader Giriraj Singh took charge as Union Minister of Textiles on Tuesday. He was welcomed into the minister's chamber by Piyush Goyal who held the portfolio in the previous government, and other top officials of the ministry After taking charge of the ministry, Singh said, "Today I have taken the charge. The textile sector is the sector which provides the most jobs. Under the guidance of the Prime Minister, we all will work to take it forward because it is also connected to the farmers." Along with Giriraj Singh, Rajya Sabha MP from Assam, Pabitra Margherita also took charge as Minister of State in the Textiles ministry. Giriraj Singh handled key portfolios in previous BJP governments. In the 2024 Lok Sabha elections, Giriraj Singh won the Begusarai Lok Sabha seat for the second consecutive time. He defeated Communist Party of India leader Abdesh Kumar Roy by 81,480 votes. Singh served as Union Minister of Animal Husbandry, Dairying, and Fisheries in Prime Minister Narendra Modi's cabinet during his second tenure in 2019. In 2021, he became Minister of Rural Development and the Minister of Panchayati Raj in the Second Modi Ministry after the Cabinet reshuffle replacing Narendra Singh Tomar. Singh was a Member of the Bihar Legislative Council from 2002 to May 2014. He served as a Cooperative Minister in Bihar government from 2008 to 2014. He was also the Minister of Animal Husbandry and Fisheries Resources Development, in the Bihar government from 2010 to 2013. In the 2019 Lok Sabha polls, Singh defeated Kanhaiya Kumar, by over four lakh votes. Pabitra Margherita, who entered the foray of politics in 2014 after joining the BJP, made a significant turn in 2022 when he was elected to the Rajya Sabha from Assam. Margherita, 49, has held various positions within the BJP, serving as its spokesperson for the Assam unit since 2014. He was also serving as the political secretary to Assam Chief Minister Himanta Biswa Sarma, further solidifying his role in the state's political landscape. He was also the charge of the party's social media cell in Assam and the zila prabhari (district in-charge) for the Kamrup (North) district BJP unit.
Pabitra Margherita, a Member of Parliament (since March 2022), representing Assam in the Rajya Sabha—the upper house of India’s Parliament, will be the Minister of State for Textiles. After joining politics in 2014, he served as a spokesperson of Assam BJP, and as prabhari of Social Media Cell of Assam BJP. He also served as Member Secretary of State Level Advisory Committee for Students and Youth Welfare, Govt. of Assam from November 2021 to March 2022.
Source: ANI News
Indian Narendra Modi government has set $250 billion textiles production target to achieve by 2030. The government has also aimed to export $100 billion in textile products by 2030, of which $40 billion will come from apparel exports. The textile and apparel industry represent over 4% of India’s total GDP and more than 14% of the country’s export earnings yearly. The COVID-19 pandemic led to disruptions in global supply chains that led slowness in Indian textile and apparel industry. Post Covid, the industry has not been able to bounce back, created a concern among industry people and government. Considering the circumstance, Indian government has taken many steps to make the industry more competitive on a global scale. They emphasized on a holistic approach towards making the Textiles and apparel sector more vibrant and innovative. India’s textile and apparel export status Textile and apparel sector is the India's largest manufacturing sector and the country has long history in textile and apparel manufacturing. The country holds a notably stronger global position as a textile exporter than as an apparel exporter. Now India is the second largest textile exporter with 7.4% global market share and fifth largest garment exporter, accounting for roughly 3.1% of global market share. (Source: WTO, 2023). The current value of apparel manufacturing in India is estimated at $52 billion, with $14 to $17 billion from apparel exports and approximately $35 to $38 billion for the domestic market. Indian garment exports have been hovering at around $14 billion $17 billion for last five years. And in the Fiscal Year (FY) 2023-24, India experienced a 10.2% decline in garments exports, totaling $14.53 billion, compared to the previous FY's figure of $16.19 billion in FY 2022-23.
India also observed a 12.5% decline in textile export in 2022, according to the WTO data, totaling $19.4 billion with 7.4% of global market share. However, manufacturing of Textiles Index for the financial year 2023-24 is 108.2 which has increased by 0.4 % as compared to the financial year 2022-23. (Source: APEC) Recent strategies to foster export growth To create a level-playing field for Indian exporters in the global market, the Indian government has brought various schemes such as Remission of Duties and Taxes on Exported Products (RoDTEP), Rebate of State and Central Taxes and Levies (RoSCTL), Production Linked Incentive (PLI) scheme, PM Mega Integrated Textile Region and Apparel (PM MITRA) park, FTAs (free trade agreements), etc. The government is discovering new markets and insisting on reducing non-tariff barriers (NTBs) in some of the existing markets. The PLI scheme is geared towards enhancing participation in the man-made fiber and technical textile sectors, while the PM-MITRA park is poised to facilitate scalability. Additionally, initiatives like RoDTEP and RoSCTL ensure the stability of incentives.
The government has forged ahead with the Comprehensive Economic Partnership Agreement (CEPA) with the UAE and the Economic Cooperation and Trade Agreement (ECTA) with Australia. Furthermore, negotiations for a Free Trade Agreement (FTA) with the UK are progressing, and discussions for an FTA with the EU are underway. Through these trade agreements, India anticipates a bolstered presence in UAE and Australian markets. The prospective FTA with the UK holds significant potential, particularly in the approximately $21 billion RMG market, potentially establishing a levelplaying field. Currently, India has a market share of 4-5 percent in the EU and UK. However, countries like Bangladesh, Vietnam, and Pakistan enjoy a tariff advantage of around 10 percent over India in certain markets. So that India a highlighting the need for strategic initiatives to enhance competitiveness. The Union Cabinet - the highest decision-making body in India - has approved the extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel, garments, and made-ups until March 31, 2026. This decision is geared towards boosting the export competitiveness of the garment and made-up sectors. So, even if India fails to meet 2030 target but a significant progress will happen certainty.
Steps towards sustainability To meet the growing internal and global demand for sustainable and circular products, India is stepping towards sustainable textile and apparel industry. India is working for the promotion of recycling facilities. Many Indian innovators are experimenting with technologies and techniques to make the different processes of the textile value chain resource-efficient and environment-friendly. The textile clusters in Gujarat and Tamil Nadu are leaders on the road towards sustainability. Many initiatives have been taken to make the manufacturing processes more resource efficient through zero liquid discharge, fibre-to-fibre recycling, switching to alternative organic dyes/chemicals as well as shifting to renewable energy sources. Alongside this, work is also being done to promote worker well-being through improved working conditions and benefits, thereby targeting all elements of ESG principles. ESG (Environmental, Social, and Governance) regulations refer to the regulatory measures designed to promote sustainable and responsible business practices. In India, ESG regulations have been gaining traction, driven by growing awareness of ESG risks and opportunities among investors, increasing focus on corporate sustainability, and the regulatory push towards responsible investment practices. The Securities and Exchange Board of India (SEBI), the regulator of the Indian securities market, the Reserve Bank of India (RBI), have been actively promoting ESG investing in India through various initiatives.
Minimum wage Minimum wages in India are low and poorly implemented, which has a negative influence on workers and their ability to lead a decent life. Minimum wage rates in India are fixed under the Minimum Wages Act, 1948. Since labour is a concurrent subject under the Indian Constitution, minimum wage rates are determined both by the Central Government and the Provincial Governments. Minimum wage rates in India are declared at the national, state, sectoral and skill/occupational levels. Under the Minimum Wages Act state governments in India are required to increase the minimum wage every five years. However, for garment workers in many states including Tamil Nadu this hasn’t been the case. The last time the Tamil Nadu state revised the minimum wage was in 2014, a decade late. The increase was never implemented because more than 500 manufacturers took the matter to court, claiming that it would be practically impossible to pay the new wage. Bharat Tex 2024 Bharat Tex 2024, a four-day mega event held at Bharat Mandapam & Yashobhoomi, attracted over a lakh visitors, uniting the entire textile value chain under one roof. With participation from over 3,500 exhibitors and 3,000 buyers representing 111 nations, Bharat Tex underlined its significance as a premier stage for the textile industry. It was a significant milestone in promoting India’s rich textile heritage and fostering collaboration within the industry.
Exploring other opportunities India is exploring the growth opportunities in Hometech, Clothtech, functional fashion as well as man-made fibre. Having adequate raw material and a large labor workforce, India is well poised to grab the opportunity in the global RMG market. India has a very good presence across the cotton textile value chain from fibre to fabric. However, it has a limited presence in man-made fibre. India is taking initiatives to get a boost in man-made fibre by expected FTA with the UK and PLI scheme. Industry leaders are stressing to prioritize automation and digitalization to enhance operational processes and efficiency. They are also advocating for a robust emphasis on people and skill development within the workforce. Furthermore, there is a concerted effort to capitalize on Free Trade Agreements (FTAs) to access untapped markets. Lastly, there is a call to adopt global best practices for manufacturing excellence to ensure competitiveness in the international market. Unlocking the potential of India's textile industry is nothing but an achievable reality. To reach the $100 billion textile and apparel export by 2030, the industry needs to embrace global trends, foster partnerships, manage labor reforms and strengthen their value chain, reducing import reliance, foster sustainability and adopt latest technology.
Source: Textile Today
FTAs thus far haven’t really delivered, and some of those being negotiated with developed nations include non-trade issues that would hurt India’s interests
An important task confronting the new government in New Delhi is the need to review India’s approach to negotiations for free trade agreements (FTAs), particularly those with the developed countries. Why is this important? What are some of the key questions that should be addressed in this review? Over the past 2-3 years India has finalised FTAs with Mauritius, the UAE, Australia and the four nation EFTA (European Free Trade Association) group. Further, considerable progress appears to have been made in the FTA negotiations with the UK and Oman. India is also negotiating FTAs with the European Union, Peru and a few other countries. It would thus appear that FTAs are being viewed as an important instrument for boosting India’s exports. Can FTAs be the primary driver of India’s exports? FTAs can open new commercial opportunities for enhancing India’s exports of goods and services. However, the incremental gain in exports on account of FTAs would be rather limited. To illustrate, a study by UK’s Department of International Trade predicts that the India-UK FTA could increase India’s bilateral exports of goods and services to the UK by £10.6 billion by 2035. This translates into an annual increase of around $1 billion — a drop in the ocean compared to India’s exports of $776 billion today. With the exception of the EU, the contribution of FTAs with most of the other countries with whom India is presently negotiating, is likely to be even more modest in giving a fillip to its exports. However, enhanced prospects of exports arising from the FTAs with the UK and the EU could remain a pipe dream, as they would get largely curtailed on account of measures such as carbon border tax. Overall, the premise that FTAs would be a significant contributor to India’s export growth appears somewhat misplaced. A review of the performance of India’s past FTAs would also bear out this point.
India’s FTA strategy needs to recognise that FTAs are no longer mainly about trade flows. On account of inclusion of provisions on a large number of non-trade issues at the insistence of the developed countries — labour, environment, gender, corruption, regulatory coherence, to name a few — FTAs of the developed countries are increasingly becoming ‘free from trade’, or even ‘far from trade’, agreements. How would India be impacted, if the final provisions in its FTAs with the UK and the EU are similar to those in the recent FTAs of these two developed country partners?
The likely impact
First, some of the provisions, particularly those on environment, labour and gender, would raise the cost of production in India, thereby eroding its cost competitiveness. Further, rules on these issues mark a clear trend towards norm-setting allowing countries to impose barriers on exports. These barriers would dent India’s exports.
Second, many of the FTA provisions on sustainability are likely to be extremely pernicious for India, but would do little for protecting the environment. A cluster of commitments would prevent India from implementing policies to spur the domestic manufacture of goods required for de-carbonisation, thereby making the country overwhelmingly import dependent. These include the following: eliminating customs duties on environmental goods; according non-discriminatory treatment to domestic and foreign suppliers in government procurement of equipment required for renewable energy production and storage; and adopting high standards of environmental protection, or harmonising standards with those prevalent in the FTA partner country. The last-mentioned obligation would prevent most Indian producers, particularly those in the MSME segment, from selling even in the domestic market as they would not be able to comply with the stringent environmental norms. This would open the Indian market for sellers who can comply with high environmental standards — mainly exporters from the developed countries. Third, an array of provisions in the existing FTAs of the developed countries are aimed at facilitating the grab of natural resources in developing countries. Prohibiting the imposition of export taxes on natural resources would prevent India from creating a value-added downstream industry based on some critical minerals required for de-carbonisation. It should also be noted that the following provisions could result in the developed countries acquiring de facto control over India’s mining sector: treating mining entities from FTA partners at par with Indian entities; establishing high standards of environmental protection for offshore oil and gas operations; promoting the values of responsible sourcing and mining; and undertaking an environmental impact assessment prior to granting authorisation for mining projects. Resource grab could also extend to grab for government data through provisions on digital trade and grab for pathogen data through provisions on ‘One Health Initiative’.
Fourth, even if many of the provisions on non-trade issues might not be legally enforceable, these should continue to ring alarm bells. India’s FTA partners would not fail to use multiple avenues available in many FTAs, particularly public participation and submissions, consultations, cooperation, dialogue, and exchange of information, to ensure compliance with the provisions on non-trade issues.
In the 1990s and 2000s international investment treaties were promoted as being the magic wand for attracting foreign investment. This proved to be a mirage. It is apprehended that the fate of the so-called 21st century FTAs being negotiated by India would be no different when it comes to significantly boosting the country’s exports. The real increase in India’s exports will come from domestic initiatives that enhance price competitiveness — infrastructural improvement; reducing the cost of capital and export finance; and bringing down transaction costs. On account of the economy-wide implications of the non-trade issues, in the long-term, the FTA embrace could smother India’s aspirations and prospects in many sectors. An urgent rethink of India’s FTA strategy is called for, before it is too late to make course correction.
Source: The Hindu Business Line
The Goods and Services Tax (GST) is often described as independent India’s most pathbreaking indirect tax reform. Here, India had the latecomer’s advantage of learning from the experience of others — preceded as it was by about 160 countries in the implementation of a GST/value added tax (VAT). However, an India-specific GST paradigm had to be evolved considering our specificities. The destination-based consumption tax subsumed several pre-existing central and state taxes, with the aim to improve the tax effort (tax-GDP ratio), end tax cascading, enhance efficiency and competitiveness, reduce prices, and accelerate Gross Domestic Product (GDP) growth. The states had to surrender more taxing powers than the Centre, raising concerns about their fiscal autonomy. Hence, they were guaranteed compensation via a cess that assured 14% growth in their GST revenue for the initial five years. As the regime is about to complete seven years, it is pertinent to explore where the system stands with regards to the promises made and the way forward.There were concerns regarding poor revenue performance in the initial years of implementation. However, the performance has been impressive following the economic recovery from the Covid-19 pandemic; revenue collections touched new highs month on month in FY24. The average monthly collections in FY24 stood at ₹1.68 lakh crore with a growth rate of 11.6%. The gross GST revenue in April 2024 (start of FY25) reached ₹2.1 lakh crore, setting a new collection record. However, a comparative analysis of revenue performance between the pre-and post-GST periods reveals that an increase in the tax base is still awaited. The average of total taxes subsumed under GST during 2012-17 was 6.13% of GDP. During 2017-2023, the GST-GDP ratio, excluding GST compensation cess, declined to 5.65%, whereas the ratio barely maintained the previous level of 6.13% if GST compensation cess (0.48% of GDP) was included. The states, in general, performed poorly in the post-GST period compared to pre-GST. In 16 out of the 17 major states, the share of GST in Gross State Domestic Product (GSDP) declined in the post-GST period, with Jharkhand being the only exception. Further, 15 out of 17 major states showed a decline in GST’s contribution to their own tax revenue (OTR) collection. The only exceptions here are Maharashtra and Tamil Nadu. Given this slip between the cup and the lip, it is pertinent to reflect on the underlying factors and the future agenda for reform. The GST performance recorded so far must be assessed against a host of factors, including the plethora of rates that presumably stood in the way of increased compliance in tax collection on account of, among other factors, the proliferation of fraudulent claims for input tax credit. The poor performance of the states needs to be viewed in the context of an equal division of total tax revenue between the Union and the states. Another issue pertains to the operation of the Integrated GST (IGST), wherein it was expected that, being a consumption-based tax, consumer states would gain. However, evidence from a consumer state like Kerala reveals that the IGST-SGST ratio is only at a low level of 1.2, indicating a significant loss of revenue for the state. GST in India is still evolving and needs reform to ensure that its social marginal product is positive. From the perspective of the states, there is much to be gained from redesigning the division of GST revenue between the Union and the states, wherein the share of states is raised from the present level of 50%. The functioning of the IGST-clearing mechanism, despite the significant improvement over time, leaves much to be done. In the reform agenda, the most discussed issue has been the simplification of the rate structure. Former chief economic advisor Arvind Subramanian made the case for a three-rate structure with a standard rate of 18%, a lower rate of 10%, and a demerit rate of 40%. Since the GST compensation period is over, cesses should be incorporated into the normal rate structure at the top rate of 40%. This is expected to eliminate a major distortion, whereby a significant source of revenues has been walled off from the standard divisible pool of taxes that provides resources to both the Centre and the states. Vijay Kelkar, the chief architect of India’s GST and chairman of the 13th Finance Commission, argued for a single GST rate based on the experience of most of the developed countries. Of the countries that have GST, 80%, including Singapore, New Zealand, the United Arab Emirates, and Japan, have opted for a single tax rate and were successful in increasing compliance and minimising tax disputes. The need for reform in tax rates cannot be over-emphasised. However, considering the country’s abysmally low tax effort, one needs to ensure that the reforms do not cause further erosion here. Any change in the rate structure also needs to ensure that it does not aggravate the already rising levels of consumption inequality and fuel inflation, as it hurts the poor the most. There is a need for caution while replanting reforms from countries that have already achieved higher tax efforts with homogeneous socio-economic structures. Reforms addressing the above issues call for more research backed by sound theory and empirics. Unfortunately, however, research on GST in the country is handicapped by the required data getting generated aplenty but not being made public.
Source: Hindustan Times
COIMBATORE: The Indian Texpreneurs Federation (ITF) in Coimbatore has urged the textile sector to focus on ready-to-cut fabric ecosystems for growth. The state and central Governments should design schemes that will motivate entrepreneurs aiming to invest in ready-to-cut fabric ecosystems, said Prabhu Dhamodaran, convenor of ITF, in a statement. China exported nearly $100 billion worth of fabric during FY 23-24 and has established itself as the ready-to-cut fabric supplier of the world by catering to the needs of many apparel manufacturing nations. Meanwhile, India exported just $ 3.8 billion worth of fabric during FY 23-24. This includes cotton, synthetic and cellulosic fibre made fabric.“The Indian textile industry particularly the spinning and weaving sector companies need to focus on this ecosystem to manage the volatility in raw materials and also improve their margins,” Prabhu Dhamodaran said.
Source: Dtnext
Synopsis The Confederation of Indian Industry (CII) believes that continuity in policy reforms under Prime Minister Narendra Modi's leadership will drive India towards becoming a developed nation. The CII president, Sanjiv Puri, stated that with a strong growth rate of 8.2% for 2023-24, the new government can implement further reforms to capitalize on global opportunities and strengthen the Indian economy's fundamentals. The CII is eager to collaborate with the new government to accelerate the nation's development journey. Industry body Confederation of Indian Industry Monday said continuity in policy reforms under the leadership of Prime Minister Narendra Modi is likely to drive India towards the goal of becoming a developed nation "Building upon a strong growth rate of 8.2% for 2023-24, the new government under his visionary leadership can usher in next phase of reforms to make the most of global opportunities and build on the robust fundamentals of the Indian economy," said Sanjiv Puri, president, CII. The strong fundamentals of the Indian economy will help India grow at a faster pace, a CII statement said. Indian industry is keen to work with the incoming government to further accelerate the developmental journey of the nation, it said. Chandrajit Banerjee, Director General, CII, said the industry body would work towards achieving consensus among stakeholders relating to next generation reforms and support the new government's efforts to unlock the potential of India's demographic dividend through education, healthcare and skill development.
Source : The Economic Times
India is expected to sustain a potential growth rate of 6.5 per cent -7 per cent year-on-year (Y-o-Y) between 2025-26 and 2029-30, UBS Securities said on Monday. During FY25, India is expected to grow at 7 per cent as post-pandemic recovery in the capital expenditure (capex) cycle, driven by government spending and strong residential real estate demand is likely to continue, said Tanvee Gupta Jain, chief India economist at UBS Securities. In the recent review of the monetary policy, the Reserve Bank of India revised its FY25 gross domestic product (GDP) forecast to 7.2 per cent from 7 per cent projected in April. Corporate capital expenditure recovery is expected to pick up now that elections are over, with visible data impacts from FY26, it said. Household consumption growth is projected to rise to 5 per cent Y-o-Y in FY25, driven by premium and rural segments, though urban mass-market demand will remain modest, she said. Exports are expected to improve slightly due to global goods import recovery and increased services exports. On the other hand, Jain said the monthly inflation forecast suggests that inflation could be lower than the RBI’s forecast of 4.5 per cent for the full year. “Indeed, even as our monthly inflation forecast trajectory is suggesting that inflation could be lower than ours and the RBI's forecast of 4.5 per cent for the full year, we will await the details of upcoming budget announcement in July (focus on government spending mix towards consumption versus capex) and monitor food inflation risks before reviewing it,” she said.
Source: Business Standrd
KARACHI: The Value-Added Textile Exporters Forum has jointly rejected the proposed imposition of both the final tax regime (FTR) and the normal tax regime in the 2024-25 budget.The forum comprises various textile associations including the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), Pakistan Readymade Garment Manufacturers & Exporters Association (PRGMEA), Towel Manufacturers Association of Pakistan (TMA), Pakistan Cloth Merchants’ Association (PCFA), Pakistan Denim Manufacturers & Exporters Association (PDMEA), Pakistan Knitwear & Sweaters Exporters Association (PAKSEA), and Pakistan Bedwear Exporters Association (PBEA). During a press conference held at the PHMA House in Karachi, the forum called the proposed changes “counterproductive”, saying that they would lead to unnecessary bureaucratic interference and potential corruption.Chief Coordinator of the Forum Muhammad Jawed Bilwani highlighted that “the current one per cent final income tax on exporters is efficiently deducted at source electronically, without human intervention, when remittances are received on 100 per cent sales proceeds, regardless of profit or loss.” The proposed change would treat this one percent rate as a minimum tax, requiring exporters to submit extensive documentation to justify their income and expenditures. Bilwani emphasized that this would *expose exporters to corruption within the Federal Board of Revenue (FBR), citing a recent scandal in LTU Lahore where FBR officials were implicated in corrupt practices.The forum warned the government against experimenting with the export sector, urging the continuation of the current FTR without changes. They also called for a reduction in the 1.0 percent income tax to 0.5 per cent. Bilwani noted that exporters’ sales tax refunds are processed electronically via the FASTER system, ensuring efficiency and minimal human involvement.
Representatives from the textile associations stressed that the proposed tax regime changes would be detrimental, leading to a significant reduction in Pakistan’s export revenue and foreign exchange earnings. They argued that such changes would diminish the competitiveness of Pakistani exports, allowing regional competitors like India, Bangladesh, Cambodia and Vietnam to capture market share. The additional disadvantages would hinder growth and expansion in the export-oriented industry, potentially driving businesses to relocate operations outside Pakistan. The forum expressed frustration over the lack of consultation from the finance minister, chairperson of the FBR, and commerce minister. It questioned “why the government consistently targets existing taxpayers, particularly value-added textile exporters, who contribute significantly to foreign exchange earnings, government revenue, and urban employment.”The forum pointed out that “50 per cent of industrial units have ceased production, and membership in textile exporters’ associations has declined by 20-25 per cent, indicating a crisis in the industry. They criticised the FBR for failing to broaden the tax base and suggested that the current tax authority be replaced with a new tax and revenue authority to better address these issues.” Highlighting the industry’s challenges, the forum noted the burden of multiple taxes, delays in sales tax and other refunds, and the highest-ever cost of manufacturing due to exorbitant energy tariffs and expensive industrial inputs. They called for the restoration of regionally competitive energy tariffs (RCET) to prevent further closures of SMEs and layoffs.The Forum also urged the new government to reduce the policy discount rate to single digits and operationalize the EXIM Bank. They advocated for a model allowing exporters back-to-back letters of credit similar to Bangladesh’s system. The forum concluded by urging the government to focus on tapping the tax potential of non-taxpayers rather than increasing the burden on compliant exporters. Prominent figures at the press conference included Chairperson of the PHMA (SZ) Abdul Jabbar Gajiani; Chief Coordinator of the PRGMEA Sheikh Shafiq; Ex-Chairperson of the PCMA Abdul Samad; Chairperson of the PCFA Khawaja Usman, Chairperson of the Export Committee (KCCI) Junaid Ur Rehman; Shoaib Majeed and other notable textile exporters.
Source : PK News
A weaving exhibition recently opened at Yunjian Hall, showcasing a blend of traditional craftsmanship and modern textile technology. The event, running until July 1, features a stunning collection of works that highlight the rich history and rapid industrial development of weaving, including 60 runway outfits and over 200 exhibits. In the exhibition space, spanning over 3,000 square meters, visitors can marvel at new textile technologies used in aerospace design, fabrics made from recycled meal boxes, textile-based artificial blood vessel stents and even a Mona Lisa made from buttons. The "Tracing Origins" section focuses on the beauty of traditional weaving, embroidery and dyeing. The well-designed layout brings to life the exquisite craftsmanship of weaving in the Yangtze River Delta region, showcasing models of ancient looms in various dynasties, alongside folk embroidery, dyeing artworks and precious silk relics. The "Cultivating Depth" section highlights the spirit of deep cultivation in the Delta's weaving enterprises and displays their latest achievements in collaborations between industry, academia and research. Through photos, physical samples, model demonstrations and videos, visitors can witness the integration of cutting-edge technology in home textiles, knitting, dyeing and cheongsam products. The "Imagining the Future" section leads visitors to the frontier of textile technology. This zone showcases innovative applications in aerospace fabrics, biomedicine, low-dimensional materials and environmental technology. Exhibits include lightweight, high-temperature-resistant aerospace textiles, nanofibers with special functions and eco-friendly textile materials. "You can see the care put into this exhibition,"said Hu Deyin, an inheritor of brocade weaving from Nanjing, Jiangsu Province. "Each item comes with detailed explanations, allowing the old objects to 'speak.'" Curator Mao Dan, an associate professor at Donghua University's Fashion and Art Design Institute, emphasized the effort involved in gathering the rare and precious items on display. "Many of these exhibits are usually housed in museums, galleries, scientific laboratories, or with intangible cultural heritage inheritors and master craftsmen. We sought them out one by one," Mao said. "The final presentation is outstanding, showcasing not only the pinnacle of contemporary textile technology but also the comprehensive heritage of traditional crafts."
Source: Shine.cn
KARACHI: The value-added textile exporters on Monday dismissed the proposed “imposition” of Final Tax and Normal Tax Regimes in the federal budget 2024-25, terming it “counterproductive”. Members of the Value-Added Textile Exporters Forum told a news conference at PHMA House that the move will create “unnecessary hassle” with involvement of FBR officials, which may open gates for corruption. Presently, the 1 percent tax deduction under FTR is electronically, without human intervention, Muhammad Jawed Bilwani, Chief Coordinator, Value-Added Textile Associations Forum told the media. “As against the existing final income tax on exporters, it has been proposed that from the next fiscal year, the 1 percent rate should be treated as minimum and the exporters will have to submit documents to justify their income and expenditures,” he said. Presently, he said, under FTR, Income Tax is directly deducted at source, electronically, when remittances are received on 100 percent sales proceeds irrespective of profit or loss. “It is a daylight fact that corruption is rampant in FBR and recent ‘speed-money case’ in LTU Lahore has unearthed it with evidence where the FBR officials have openly expressed their animosity with each other to get their illicit shares,” he said. Jawed Bilwani and other exporters urged the government to refrain from adventuring with export sector and continue the Final Tax Regime for Exporters as usual without change. He said that textile exporters are further expecting from the government to revise downward the 1 percent income to 0.5 percent. He added that the Exporters file their Sales Tax Refunds electronically through FASTER system, which are also processed electronically without human intervention and their claims are also disbursed electronically. Exporters articulated that proposed changes in tax regime for exporters will be counter-productive. “It will result in drastic reduction in Pakistan’s export revenue leading to a reduction in Pakistan’s foreign exchange earnings,” they warned. They said that the local exporters are likely to lose export opportunities to other countries like India, Bangladesh, Cambodia and Vietnam for lack of competitiveness faced by Pakistani industry. They said that the Finance Minister, Chairman FBR and Commerce Minister have not consulted with the Textile Export Associations for Federal Budget 2024-2025.
Some 14 Tax Reform Commissions were formed for restructuring and reforms, but all failed, they added. The export industries are already faced with huge set of challenges as they are paying multiple taxes ranging from the Federal Government, Provincial and Local Government, Export Development Surcharge, SESSI, EOBI, etc. They urged the government to bring back policy discount rates to a single digit and EFS rates to previous levels, besides allowing exporters with back-to-back LC on a Bangladesh model. Those participated in the event including Abdul Jabbar Gajiani, Chairman PHMA (SZ), Sheikh Shafiq, Chief Coordinator PRGMEA, Abdul Samad, Ex-Chairman PCMA, Khawaja Usman, Chairman PCFA, Junaid Ur Rehman, Chairman Export Committee KCCI, Shoaib Majeed, PDMEA and representatives from TMA, PAKSEA & APTPMA and prominent textile exporters, Babar Khan, Riaz Ahmed, Junaid Makda, Abdul Qadir Bilwani, Faisal Arshad Sheikh, Khizer Mehboob, Ilyas Gigi and Abdul Rehman.
Source : Berecorder
Finance minister Abul Hassan Mahmood Ali said that efforts to control inflation may require an additional six months, emphasising the government's commitment to implementing necessary measures. Speaking during a post-budget press briefing recently, the finance minister highlighted that the government's focus on inflation control influenced this year's tighter proposed budget. The minister credited the Awami League government's actions for maintaining inflation within the 9 per cent range, noting that inflation had spiked to 10 per cent in 2010 after their assumption of power, up from around 9 per cent in 2009. However, within two years, the government successfully reduced inflation to 5 per cent-6 per cent in the following decade. Explaining recent challenges, Ali pointed to global foreign exchange issues worsened by the Covid-19 pandemic and the Russia-Ukraine conflict, contributing to inflationary pressures even as he assured that the government had implemented various measures to address inflation and was exploring additional strategies to mitigate its impact.
Source: Fibre2fashion
