New Delhi: The Ministry of Textiles approved Startups in Technical Textiles to boost innovation and sustainability and to foster transformative developments that will shape the industry’s future. This was stated by Smt. Rachna Shah, Secretary, Ministry of Textiles, while chairing the 7th meeting of the Empowered Programme Committee (EPC) of National Technical Textiles Mission (NTTM) here today. NTTM’s Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) encourages young innovators, scientists/technologists, and startup ventures in the field of Technical Textiles to translate their ideas into commercial technologies/products and make India self-reliant. GREAT supports individual entrepreneurs or start-ups for functional prototypes or commercialization of their technologies for Technical Textiles, she said. The Empowered Programme Committee (EPC) has approved 7 startup proposals under the GREAT scheme. GOI is providing a maximum fund support of INR 50 lakhs per startup. As of date, 8 startup proposals have been approved under NTTM, focusing on sustainability, composites, high-performance textiles, meditech, and smart textiles, driving significant advancements in these crucial areas. Some of the start-ups which were approved by EPC and can go a long way in driving technology-oriented manufacturing in India are ‘developing and manufacturing Braided Composites for Military applications, Radmone Integrated IFF Antenna, Surgical Stimulations models made-up of composites for training doctors, Nano-fibre infused textiles for energy generation and sensing.’
Additionally, the EPC has approved a grant of approximately INR 6.4 crores to IIT Guwahati to introduce new papers/subjects in technical textiles and upgrade laboratory infrastructure in its Civil Engineering Department. The grant has been provided under NTTM’s ‘General Guidelines for Enabling of Academic Institutes in Technical Textiles- for Private & Public Institutes’. By enhancing its laboratory infrastructure and expanding its capabilities in technical textiles, especially geotextiles, IIT Guwahati, a premier institute in North East Region, would be better equipped to address the unique geographical and environmental conditions of the region. The grant would catalyze the institute to become a key enabler of NER’s development by offering technical consultancy and necessary support.
Source: Pragativad
Synopsis The council may also take up recommendation of the fitment committee on inverted duty structure of 15 items, officials aware of the matter told ET. However, a broader process of rate rationalisation may be pushed for later, they said. New Delhi: The Goods and Services Tax (GST) Council is likely to consider a review of 28% tax on online gaming and clarification on several procedural matters at its next meeting on June 22 in the national capital. The council may also take up recommendation of the fitment committee on inverted duty structure of 15 items, officials aware of the matter told ET. However, a broader process of rate rationalisation may be pushed for later, they said. The council secretariat announced the date of the meeting in an X post on Thursday. In November, the GST Council had reconstituted the group of ministers (GoM) on rate rationalisation, with Uttar Pradesh finance minister Suresh Kumar Khanna heading it. The GoM has not met even once since then. It may be reconstituted again in view of the new governments taking charge in some states, and be given a fresh timeline to firm up its final report. Detailed Agenda Shortly Detailed agenda of the meeting is likely to be finalised in a day or two, officials cited above said. The council is expected to review the decision to levy 28% GST on full value of bets for online gaming companies, which came into effect from October 1, 2023, they said. The council had agreed to review it after six months of implementation. The industry expects the council to discuss the proposal of bringing natural gas and aviation turbine fuel under GST. The apex decision body for GST could also take up a proposal for clarification on levy of tax on secondment of employees. Industry also expects the council to issue clarifications on critical matters such as related-party transactions, employee stock option plan (Esop) taxation, corporate guarantee and inverted duty structure in textiles and fertilisers among others. "The expected clarifications on critical matters such as related-party free-ofcost transactions and Esop taxation are also indicative of policymakers' efforts to engage with industry stakeholders and streamline procedures based on feedback," said Mahesh Jaising, partner at Deloitte India. The GST Council had last met on October 7, 2023.
Source: The Economic Times
Synopsis Narendra Modi-led NDA govt's third term brings hopes for manufacturing sector with policy continuity, new PLI schemes, and TDP's Chandrababu Naidu joining alliance for reform and innovation. With the Narendra Modi-led NDA government starting a third term, the manufacturing sector is looking forward to policy continuity, capital infusion, and fresh PLI schemes to further bolster India as a manufacturing destination of choice for foreign firms as well as to build a robust and resilient supply chain ecosystem. And industry insiders are not worried about the coalition nature of the government. In fact, the entry of Chandrababu Naidu-led Telugu Desam Party's (TDP) into the ruling alliance is also being cheered by the industry as the new Andhra Pradesh chief minister is seen as someone who will push for reform and innovation in the space. He is being viewed as a “force multiplier”. “It provides comfort that there are only two main alliance partners (with the BJP), of which Chandrababu Naidu is viewed as an extremely progressive, forward-looking politician and even when it comes to Nitish Kumar, if he wants to keep his prospects bright in Bihar, he would want the state to develop The new coalition regime would likely indicate a more “uniform distribution” of projects to various states, the person said. “We are hopeful that projects will be more evenly distributed amongst states. Now, with the BJP coming into power in Odisha, and the state sharing a border with Andhra Pradesh and with its proximity to Visakhapatnam, it is possible that those areas could see a lot more industrial investment flowing in,” the person said. Some other officials ET spoke with, however, felt differently. They said it was likely that some big-ticket projects could go to Andhra Pradesh as Naidu is likely to bat heavily to develop the Chittoor belt from where he contested from. But they believed this was not necessarily a bad thing and would only intensify the competition between states for projects. The Industry representative told ET. “In fact, it (coalition) is being viewed as something that will only lead to more focus on manufacturing and further bolster the electronics manufacturing sector.” The manufacturing industry is also keen that the PLI schemes, which have been huge successes in Modi's second term, will be taken forward and more PLIs will be introduced for traditional sectors as well like textile, cement, leather and so on. For the electronics manufacturing industry, it seems like all eyes are set on the pending proposals with the India Semiconductor Mission (ISM) which are awaiting cabinet approval. Industry is hopeful that things will begin gathering steam post the budget in July. For the automotive sector, expectations of policy continuity and the continued focus on Make in India are fuelling optimism. “The general sentiment is very positive as there is no expectation of the momentum reducing,” said Soumen Mandal, senior research analyst tracking the automotive sector at Counterpoint Research. “When it comes to the automotive and heavy industries sectors, there is a belief that there is no reason for a change in direction and that there will be policy continuity. These are sectors that are major employers and the government will want to boost it further in their third term.”
Source: The Economic Times
Synopsis Moody's said stronger portfolio inflows are likely in India and ASEAN economies, because of robust corporate credit metrics and appealing valuations. New Delhi: Moody's Ratings on Thursday said India will remain the Asia-Pacific region's fastest-growing economy in 2024, sustaining last year's domestically driven momentum. In a report titled Credit Conditions - AsiaPacific H2 2024 Credit Outlook, Moody's Ratings said Indonesia, the Philippines and India led the way in terms of growth in first half of 2024 and should continue to outperform preCOVID growth numbers on the back of rising exports, local demand and government spending on infrastructure. "India will remain the region's fastest-growing economy, sustaining last year's domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment," it said. Moody's said stronger portfolio inflows are likely in India and ASEAN economies, because of robust corporate credit metrics and appealing valuations Last month, the rating agency projected India to grow 6.8 per cent in the current year, followed by 6.5 per cent in 2025, on the back of strong, economic expansion along with post-election policy continuity. India's real GDP grew 7.7 per cent in 2023, up from 6.5 per cent in 2022, driven by robust capital spending by the government and strong manufacturing activity.
Source: The Economic Times
A skill development training programme in textiles is proposed under the Textiles department through the Tamil Nadu Skill Development Corporation. Given the prominence of the textile industry in the economy and its capacity for employment generation, a special programme to equip youth with industry-relevant skills in various aspects of textile manufacturing and production has been proposed. According to the administration, through a “comprehensive curriculum and hands-on training, participants will be given insights and practical experience enabling them for a career in the textile sector.
The training will be imparted to both women and men by the South India Training and Research Society (SITRA). Those seeking training may register on https://tntextiles.tn.gov.in/jobs .Further details may be ascertained from the Regional Deputy Director, Textiles Department, 1 A - 2/2 Sankari Main Road, Gugai, Salem -06; phone - 0427-2913006.
Source: The Hindu
Enhance collaboration with industry to increase effectiveness of apprenticeship: MSDE minister Jayant Chaudhary
Synopsis During a comprehensive review of the skilling schemes with the top ministry officials, Chuadhary reiterated on providing quality skill training to the youth, across the country, with a special focus on marginalized communities, backward areas, and new-age market relevant skills, the ministry of skills development and entrepreneurship (MSDE) said in a statement. Jayant Chaudhary, minister of skills development and entrepreneurship (independent charge), on Thursday, called for increased collaboration with the industry partners to enhance the scope and effectiveness of apprenticeship and vocational training programmes in India besides . During a comprehensive review of the skilling schemes with the top ministry officials, Chuadhary reiterated on providing quality skill training to the youth, across the country, with a special focus on marginalized communities, backward areas, and new-age market relevant skills, the ministry of skills development and entrepreneurship (MSDE) said in a statement. Elaborating on the necessity of a unified effort to ensure the successful implementation and expansion of skill development initiatives across the nation, Chaudhary said that focus should be on close collaboration and According to a statement, the idea of a comprehensive review was to gain a deep understanding of the operations of various MSDE divisions, their achievements, and the challenges they face. “This will enhance the ministry's strategic approach and future roadmap towards skill development,” it said, adding latest data and feedback on these schemes was also analysed to identify areas requiring immediate attention and improvement. “The minister expressed optimism for India’s skill development, affirming the ministry’s commitment to fostering essential skills and sustainable economic growth and making skill development central to India’s global economic goals,” it added.
Source: The Economic Times
Banks are holding up payments to local textile manufacturers against purchase of raw materials by readymade garment exporters under back-to-back letters of credit, textile manufacturers alleged. The Bangladesh Textiles Mills Association on Thursday sent a letter to Bangladesh Bank governor Abdur Rouf Talukder to resolve the issue, saying that a total of $35.86 million of 52 textile mills remained unpaid although banks issued maturity date against the amount. BTMA president Mohammad Ali Khokon in his letter said that the local fabric and yarn manufacturers had been facing severe liquidity crisis due to unusual delays made by the banks in paying the accepted bills. The BTMA leaders alleged that the RMG exporters were buying yarns and fabrics from both local and external sources under back-to-back LCs. The banks made payments to foreign suppliers just after submission of the bill of lading as per the conditions of LCs, but they were deferring payments to the local suppliers for six months to one year. The country’s spinning, weaving and dying mills are working as deemed exporters through supplying yarns and fabrics to the RMG exporters. After getting the pro-forma invoice from the mills, the RMG exporters opened back-to-back LCs and the mills shipped the materials to the respective factories through truck receipts and delivery challans.
Despite taking signatures of factory authorities on the truck receipts and delivery challans, the banks forced the textile millers to obtain the acceptance of buyers on the bill of exchange, which was unnecessary, a BTMA leader said. Even after fulfilling all requirements, the banks delayed payments over a number of excuses, including that export proceeds were not repatriated, export proceeds were repatriated partially or that there was lack of sufficient balance in the buyers’ accounts with the banks to pay the suppliers, he said.
Source: New Age
US textile executives told the US Trade Representative (USTR)'s newly appointed chief textiles and apparel negotiator, Katherine White they would like to see increased Section 301 China tariffs on finished textile and apparel imports and the closing of the de minimis loophole. USTR apparel negotiator White made her inaugural trip to a major hub of American textile production facilities and visited six plants in total in North Carolina, including American & Efird, Parkdale Mills/US Cotton, TSG Finishing, Shuford Yarns, Schneider Mills, and Unifi. White was shown recent textile and apparel industry innovations, the facilities’ advanced manufacturing capabilities and the role the domestic sector plays in supplying the US military and personal protective equipment (PPE). White also participated in a roundtable discussion at Gaston College’s Textile Technology Center where US textile executives underscored the domestic textile supply chain’s $64.8bn output in 2023 and the benefits of its over 500,000 workforce. However, the attendees also warned of severe economic headwinds from foreign trade practices and so-called inadequate enforcement of trade laws. The textile executives urged White and Biden’s administration to:
Increase Section 301 China tariffs on finished textile and apparel imports
Close the de minimis loophole
Expand the Western Hemisphere co-production chain and maintaining the yarn forward rule of origin. Step up customs enforcement of textile and free trade agreement enforcement and penalties.
Support domestic supply chains through Buy American and Berry Amendment policies that help onshore production, spur investment, maintain the safety and security of US armed forces and generate new jobs. White affirmed the executives that President Joe Biden and USTR ambassador Katherine Tai are committed to a trade policy agenda that “levels the playing field for our domestic industries and workers, so they have the tools they need to compete in today’s global economy”.
Source: Just Style
ISLAMABAD: The All Pakistan Textile Mills Association (Aptma) has voiced severe concerns about the proposed Budget 2024-25, terming it extremely regressive for the textile sector and exports.According to Aptma, the budget also packs dire consequences for employment and external sector stability, as well as for overall economic and political stability and security of the country. After peaking at $19.3 billion in FY22, textile exports plummeted to approximately $16.5 billion in FY23. The trend continued throughout FY24, with monthly exports consistently falling over $600 million below the installed capacity. This drastic decline highlights the urgent need for governmental intervention to support the sector. No measures have been put forward to resolve the industry-wide energy crisis. Grid power tariffs have soared to 16.4 cents/kWh and are expected to increase by another 2 cents/kWh following tariff rebasing in July. This is more than twice the regional average. The cross-subsidy from industrial to other consumers is also expected to rise from Rs240 billion to Rs380 billion, exacerbating the financial strain on textile manufacturers and further eroding their competitiveness. The budget is based on extremely regressive tax policies. The tax rate on exports has increased from a 1% final tax regime to a staggering 29% on profits, plus a 2% advance tax on export proceeds. This excessive taxation eliminates incentives for export-oriented activities and drains liquidity from the sector as the 2% advance tax will soak up all liquidity from low-margin high-volume industries like textile. The elimination of zero-rating for local supplies to export-oriented units will lead to a surge in intermediate input imports since exporters can use import for export schemes to import duty-free and sales tax-free inputs. This 18% sales tax plus turnover tax will further disadvantage local manufacturers already struggling with high energy costs. The local manufactures of intermediate products like yarn and cloth have already lost their competitiveness due to prohibitive energy prices, as evidenced by a 600% increase in the imports of yarn between July 2023 and May 2024. These measures will further erode their competitiveness, causing a huge reduction in domestic value addition in exports and deterioration of the trade balance. Persistent delays in the issuance of sales tax and other refunds have created a severe liquidity crisis within the industry.Despite regulations mandating automatic refunds within 72 hours, delays extend to several months, with many claims deferred indefinitely. The rising energy costs, high interest rates, and the dysfunctional sales tax refund mechanism have pushed many firms to the brink of bankruptcy. The FY25 budget places a further strain on the industry’s liquidity without any measures to release the liquidity stuck in sales tax and other refunds for many months and years. The proposed budget contradicts the principles of efficient capital and investment allocation as Pakistan’s corporate tax rates remain the highest in the region, dissuading investment in productive sectors and activities. The failure to rationalize import duties on critical raw materials like Purified Terephthalic Acid (PTA) and Polyester Staple Fiber (PSF) continues to benefit a single obsolete 30-year-old manufacturing facility at the cost of the entire sector’s export growth and diversification, maintaining an anti-export bias and hampering the competitiveness of the textile sector. With 60% of the basic industry already shut down and the remaining on the verge of closure, this budget will hasten the collapse of the textile sector and devastate the entire economy. The textile sector, responsible for over 50% of export earnings and employing over 40% of the industrial labour force is critical to Pakistan’s economic stability. The widespread closure of firms will significantly reduce export earnings, leading to inability to meet import bills and external financing obligations, increasing the risk of balance of payments crises and sovereign default. It will cause over 4 million workers in the textile sector to become unemployed, in addition to the millions who have already lost their jobs and livelihoods. The reduced industrial activity will reduce industrial power consumption, causing an increase in unutilized capacity payments and further raising power tariffs for all consumers.
There would be severe deterioration in both foreign and domestic investment prospects, further destabilizing the external sector and overall economic growth for years to come. The Association urged the government to reconsider the FY25 budget and implement measures that address the prohibitive energy costs, rationalize taxation, and provide a conducive business environment to avert an imminent collapse of the textile sector.
Source: International News
Shifting the Bangladesh apparel and textile industry from a linear to a circular model dominated discussions at the second Bangladesh Circular Economy Summit. The Bangladesh Circular Economy Summit in Dhaka was organised by the Bangladesh Apparel Exchange (BAE) in collaboration with German development cooperation agency GIZ and in association with the Embassy of the Kingdom of the Netherlands in Bangladesh. The event spotlighted the importance and ways of transitioning from a linear economic model to one that prioritises resource efficiency and waste reduction. The summit began with an inaugural ceremony, followed by four insightful plenary sessions, three engaging panel discussions, and an innovative breakout session. Through these platforms, participants explored strategies to accelerate the adoption of circular practices within Bangladesh’s apparel and textile industries. Chief guest H.E. Jahangir Kabir Nanak, Honorable Minister for Textiles & Jute, Government of the People’s Republic of Bangladesh said the Bangladesh apparel industry has come a long way in terms of sustainability. “For the development of our country, it largely depends on the apparel and textile industry. There have been tremendous safety improvements in the industry. The country’s apparel industry is taking a lead in responsible business. While we are going forward, we need to ensure it is sustainable. Collaboration will be key for circularity and progress.”
Source: Just Style
