In May 2024, Indian textile exports increased by 9.59 per cent over the previous year, despite poor economic conditions in important markets like the US, the EU, and West Asian countries. In the same time frame, there was a 9.84 per cent increase in Indian garment exports. According to the CITI data, overall textile and apparel exports in May 2024 increased by 9.70 per cent compared to the same month the previous year. In May 2024, the nation’s total exports reached a record US $ 68.29 billion. Figures issued by the Commerce Ministry show a significant increase of 10.2 per cent year over year. According to the data, between April and 24th May, Indian textile exports increased by 6.04 per cent over the prior year, while clothing exports increased by 4.46 per cent in the same period. Comparing April to May of 2024 to the same period in the previous year, there was a 5.34 per cent increase in the total exports of textiles and clothing. The Federation of Indian Export Organisations (FIEO) President, Ashwani Kumar, noted that strong order bookings in May 2024 contributed to a good trajectory. The US, UAE, Netherlands, UK, China, Singapore, Saudi Arabia, Bangladesh, Germany, and France were among India’s top 10 export destinations. Significantly, the exports showed double-digit growth in these markets.
Source: Apparel Resources
NEW DELHI: The European Union's new ecodesign regulation, setting stringent sustainability requirements for all products in the bloc, is expected to hit Indian exporters, particularly smaller businesses, as it bans the destruction of unsold textiles and footwear, which could limit orders. The guidelines issued a few weeks ago has mandated product durability, reusability and energy efficiency, and is in line with a series of steps, including carbon border adjustment mechanism and the deforestation regulations that have been put in place. CBAM is seen as a unilateral move that may be challenged at the WTO. The ecodesign regulations are to kick in 24 months after its publication in the official journal. The European Commission can introduce similar bans for other products in the future, an official statement said. "There are certain products that must comply with minimum requirements related to energy efficiency. These are called ecodesign requirements and the aim is to reduce the negative environmental impact throughout the product's lifecycle," EU explained on its website. "While industry is adjusting to the new ESG (environmental, social and governance) norms, these kinds of changes that come up suddenly particularly affect small players," said Mithleshwar Thakur, secretary general at Apparel Export Promotion Council. Thakur, who heads the secretariat at the industry body, suggested that govt should take it up as part of the bilateral talks with EU. Another industry player described it as a non-tariff barrier and said govt should flag the concern even during the free trade negotiations as these norms would negate the impact of any tariff cut that is being sought. The adoption of the regulations by the European Council has temporary exclusions for SMEs, but they are not seen to be sufficient. "This new regulation replaces the existing ecodesign directive and broadens its scope to encompass all goods placed in the EU market, beyond just energy products. To encourage the public purchase of green products, ecodesign criteria will be applied in public procurement. It will also align with the Digital Services Act for products sold online," the EU statement said. The regulation applies to a wide array of products, with exceptions, like cars and defence-related items. It introduces new requirements including product durability, reusability, upgradability, reparability and energy & resource efficiency, it added. There are norms regarding substances that restrict circularity, recycled content, remanufacturing, recycling, and environmental footprints.
Source: Times of India
Ahmedabad: is a leader in the textile industry in India, but the industry must focus on and new technology to grow faster, especially in the export market, experts of the textile industry said. The industry has a strong base, and new entrepreneurs can grab good opportunities with quick changes in the industry. The Gujarat Chamber of Commerce & Industry (GCCI) organized its Textile Leadership Conclave 2024 on Saturday. Member of Parliament and president of the Textile Association of India (Ahmedabad unit), Hasmukh Patel, said, “The textile industry had a much higher share in total production and exports till 2000, but due to slow policy decisions its share in India’s exports came down. Many composite mills closed due to lack of labour reforms and new technology. “However, in the last decade, the central govt has taken various measures to boost the industry and a large PM Mitra Park is being set up in South Gujarat for textiles. Globally, man-made fibres are being used at a rate of 70% while in India we use 70% natural fibre, so there is a need to increase the share of manmade fibres.” GCCI president Ajay Patel said, “The textile industry has seen rapid growth in Gujarat, and we will continue to organize such conclaves to make the industry aware of the new rules of business.” Saurin Parikh, chairman of the GCCI textile taskforce, said, “The textile industry provides direct employment to 4.5 crore people and indirect employment to 12 crore people. We believe greater emphasis needs to be given to technical textiles for quicker growth.” Indian textile and apparel exports saw significant growth in May 2024, with merchandise exports rising to $38.13 billion and service exports reaching $30.16 billion. Key markets like Singapore, Saudi Arabia, and Bangladesh showed strong growth. Andhra Pradesh minister TG Bharat aims to change the state's industrial landscape by adopting the Gujarat model for rapid progress in the next five years. The finance department approved the new fees for industrial hygiene surveys. Additionally, draft rules for penalty proceedings against rule-breaking factories have been introduced
Source: Times of India
India is projected to be the Asia-Pacific’s (APAC) fastest-growing economy in the second half this year fuelled by domestic demand growth, according to Moody's Ratings. India, Indonesia and the Philippines were the key growth outperformers in the first half of the year on the back of rising exports, local demand and government infrastructure spending, it observed. India and economies in the Association of Southeast Asian Nations (ASEAN) are likely to see stronger portfolio inflows due to robust corporate credit metrics and attractive valuations. “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,” the credit rating agency said in its report, titled 'Credit Conditions—AsiaPacific H2 2024 Credit Outlook'. The Indian banking system is on a positive outlook due to sound economic growth and healthy corporate credit quality, the report noted. The pace of monetary policy normalisation will be uneven across the APAC and the region's central banks are unlikely to move before the US Federal Reserve, meaning cuts will not arrive until the second half this year or early 2025. “Volatile commodity prices elevate risks to this time scale, given most countries in the region are net food and oil importers. The Bank of Japan will remain an outlier, but financial conditions will stay accommodative this year,” the report added.
Source: Fibre2fashion
India can be a "reliable partner" for Nepal's development and prosperity, former prime minister Madhav Kumar Nepal said on Sunday, as he congratulated Prime Minister Narendra Modi and the Indian government for conducting successful elections in the world's largest democracy. Addressing an event with the theme Indo-Nepal Friendship and Economic Cooperation here, Madhav Nepal also said that India and Nepal should stand together to fight against the effects of climate change. India can be a reliable partner for Nepal's development and prosperity, said Madhav Nepal, the chairman of CPN-Unified Socialist Party, which is part of the ruling coalition. He said that Nepal can provide a solution of green energy to India through its abundant hydropower resources Addressing the event, Minister for Tourism and Culture Hit Bahadur Tamang said that Nepal cannot reduce its trade deficit only by exporting hydroelectricity to India and Bangladesh and for that, we need to promote tourism as well." Pilgrimage tourism is the major attraction to bring in a large number of Indian tourists in Nepal," he said. The minister added that Nepal can attract Indian visitors residing in hot areas to the cooler hill stations of the Himalayan nation during summer. K V Rajan, former ambassador of India to Nepal, said the relations between the two countries are unique in the world as it is guided by people-to-people contact. He termed his five-year tenure from 1995 to 2000 as Indian envoy to Nepal as the golden period in bilateral relations and said mutual respect, cooperation, understanding and trust should be the basis for friendship between the two neighbours. "Civil society can play an important role, and people-to-people contact is important in tying the bond of friendship, he said.
Source: Business Standard
Indian textile exports grew by 9.59% in May 2024 compared to the previous year despite unfavourable economic conditions in major markets such as the European Union (EU), the US, and West Asian nations, the Confederation of Indian Textile Industry (CITI) said in a report. Simultaneously, Indian apparel exports saw a growth of 9.84% during the same period. The CITI in its report highlighted that the cumulative exports of textiles and apparel during May 2024 registered a growth of 9.70% over May last year. The country's overall exports for May 2024 surged to $68.29 billion. This was a substantial year-on-year increase of 10.2%, according to data released by the Commerce Ministry on June 14. The analysis noted that during Apr -May' 24, Indian textile exports registered a growth of 6.04% over the previous year, while apparel exports registered a growth of 4.46% during the same time period. The cumulative exports of textiles and apparel during April-May 2024 saw a surge of 5.34% as compared to the same period last year. The recently released export data revealed that sectors such as electronic goods, drugs and pharmaceuticals, organic and inorganic chemicals, engineering goods, petroleum products, plastics & linoleum, cotton yarn/fabs made-ups ( textiles manufactured), handloom products, etc., man-made yarn/fabs./made-ups, handloom products etc. performed well in the exports from the country. Other merchandise products, such as meat, dairy and poultry products, mica, coal and other ores, minerals including processed minerals, ready-made garments, tea, coffee, rice, tobacco, carpet and handicrafts, oil seeds; and fruits and vegetables, did well too. On Friday, Ashwani Kumar, President of the Federation of Indian Export Organisations (FIEO), highlighted that a positive trajectory was seen in May 2024, driven by robust order bookings. Among the top ten export markets for India were the US, UAE, Netherlands, UK, China, Singapore, Saudi Arabia, Bangladesh, Germany and France. Considerably, in these markets, the exports registered a double-digit growth rate. Other merchandise products, such as meat, dairy and poultry products, mica, coal and other ores, minerals including processed minerals, ready-made garments, tea, coffee, rice, tobacco, carpet and handicrafts, oil seeds; and fruits and vegetables, did well too. On Friday, Ashwani Kumar, President of the Federation of Indian Export Organisations (FIEO), highlighted that a positive trajectory was seen in May 2024, driven by robust order bookings. Among the top ten export markets for India were the US, UAE, Netherlands, UK, China, Singapore, Saudi Arabia, Bangladesh, Germany and France. Considerably, in these markets, the exports registered a double-digit growth rate.
Source: Hindustan Times
The United Kingdom (UK) has overtaken China to become India’s fourth-largest export market in May, commerce department data showed. The UK was India’s sixth-largest export destination in May last year. While exports to the UK grew by a third to $1.37 billion in May, the shipments to China saw 3 per cent growth at $1.33 billion last month. The disaggregated data for May wasn’t immediately available, but trends over the past few months showed that exports to the UK were dominated by items such as machinery, food items, pharmaceutical products, textiles, jewellery, iron, and steel, among other items. Commerce department data showed that India’s top 10 key export markets witnessed positive growth in May, reversing the trend when exports to some of these countries contracted for more than a year. These 10 countries comprise 52 per cent of the country’s total value of goods exported in May. India’s merchandise exports grew 9.13 per cent in May to $38 billion. This came in after several months of tepid growth in outbound shipments, amid volatile global demand and uneven economic recovery. The United States (US) continued to remain India’s largest export destination, with 13 per cent growth, followed by the United Arab Emirates (UAE), which saw 19 per cent jump. Export to the Netherlands, which is also India’s third-largest export market, soared to $2.19 billion with nearly 44 per cent growth in May. Other countries that showed positive growth include Saudi Arabia (8.46 per cent), Singapore (4.64 per cent), Bangladesh (13.47 per cent), Germany (6.74 per cent), France (36.94 per cent). Imports Out of India’s top 10 import markets, inbound shipments from only Saudi Arabia and Switzerland in May contracted 4.11 per cent and 32.33 per cent, respectively, the data showed. The remaining eight witnessed growth in May, in line with the overall merchandise imports that rose 7.7 per cent to $61.91 billion.
Source: Business Standard
Synopsis India proposes to decriminalise provisions in the central excise law, aiming to remove imprisonment for minor duty evasions and reduce penalties. The proposed Central Excise Bill 2024 seeks to modernise provisions, align with GST laws, govern taxation of tobacco and petroleum products, and operate in an automated online mode. New Delhi: India has proposed to decriminalise a host of provisions in the central excise law including restrictions on physical possession of excisable goods like tobacco and removing the provision for imprisonment for minor duty evasions. The proposed Central Excise Bill 2024, recently put in public domain for consultations, seeks to remove provisions for imprisonment for offences involving duty evasion of less than ₹1 crore and reduce maximum prison term for various offences to five years from seven years now. The existing Central Excise Act has harsh penal provisions including monetary penalties as well as criminal provisions such as imprisonment ranging between 3 years and 7 years for non-compliance. The bill also proposes to reduce the ceiling of interest on delayed payment of duty to 18% from 36%. Taxpayers will be able to utilise inputtax credit in addition to cash for predeposit while filing appeals and the government will issue refunds within 60 days instead of 90, as part of ease of doing business. The draft bill, released on June 4, proposed a one-year deadline for passing adjudication orders, which is extendable only up to six months. If the order is not issued within the specified time period, the proceedings will be deemed to have been concluded. It also suggests mandatory annual reconciliation of periodic returns with audited financial statements, which will ensure greater accuracy and reduce the scope for errors in duty payment. A uniform show-cause timeline of three years will apply to all show-cause notices irrespective of the reason for non-payment. "By repealing outdated provisions and introducing streamlined processes, the bill aims to enhance the ease of doing business," said Mahesh Jaising, partner The bill seeks to replace the Central Excise Act, 1944, which currently governs the taxation of tobacco, tobacco products and five petroleum products petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. The bill is aimed at enhancing the ease of doing business and modernising the provisions, to the extent possible, while aligning them with the GST laws. It is envisaged to operate in an automated online mode in line with the GST laws. The Centre has sought comments and suggestions from the stakeholders till June 26.
Source: Business Standard
As India tries to grow faster, the country needs to grapple with "unfavourable" factors like slowing globalisation, divisive world politics and the raging issue of climate change, Chief Economic Adviser V Anantha Nageswaran said on Friday. China, which grew at almost double digits between 1980 and 2015, did not have to contend with these factors during its high growth phase, Nageswaran said, addressing a Federation of Automobile Dealers Association (FADA) event here. "When India is now trying to grow, all these three factors have become unfavourable for India. Globalisation is slowing down, global politics is getting divided, and climate change is a raging topic," he said. Between 1980 and 2015, China was blessed with very strong globalisation, global politics not being as divisive and polarising, and the world not being as conflict-ridden, he said. Making it clear that India has "troubled relations" with China, the academic-turnedpolicymaker CEA asked the auto industry to reflect on the growing reliance on China, given the northern neighbour's strengths in electric mobility and the imports we have to undertake to feed the "fashion of the day". "We should not be substituting our dependence on Arab nations for crude oil to another country with which India has had troubled relations," he noted. He explained that when it comes to e-mobility, there is growing import dependence on China for critical minerals and metals used by the auto industry to manufacture a vehicle. Nageswaran also asked the dealers to look at this issue from the climate change lens, asking them to advise consumers accordingly. "Dealers should also educate themselves and the public on the global climate impact of the purchase decisions that we make as consumers. It is one thing for the manufacturers to follow the fashion of the day. The fashion of the day is e-mobility," he said. Elaborating on the same, he said e-mobility requires batteries, metals and minerals like lithium and graphite, charging stations and electricity generation from dirty resources like coal. The auto industry needs to formulate its strategies depending on the priorities of India and not get influenced by the auto shows in the developed world alone, the CEA said. Stating that Indian auto manufacturers do not rank high on the safety front, he asked dealers to impress the need for passenger safety to manufacturers and pointed out that India's economic growth is impacted because of the "needless" road deaths. He rued that India is perceived to be less trustworthy and asked the industry to take corrective measures on the same. "One of the things that India is considered to be deficient is in trust between people, between people and the government, between people and institutions, between people and intermediaries," he said, adding that this leads to excessive documentation and multiple attestation, among others, that extracts an economic cost. He expressed satisfaction with the overall picture, when it comes to banks' lending to various sectors like personal loans, auto loans etc, and added that the Indian corporates are looking to borrow. Acknowledging that auto sales in some segments are yet to return to the pre-COVID levels, he said a majority of the segments have comfortably exceeded the pre-pandemic sales levels. Nageswaran, who spoke virtually, said that the process of making the Budget and Economic Survey under the new government has begun.
Source: Business Standard
Synopsis The spokesperson of the Ministry of External Affairs Randhir Jaiswal described the meeting between the two leaders as "fruitful." "The two leaders took stock of bilateral relations in areas of defence and security, trade and economic collaboration, critical and high technology sectors and people to people connect. They discussed implementation of Roadmap 2030 and progress made in ongoing FTA negotiations," Jaiswal posted on X. Prime Minister Narendra Modi on Friday met his British counterpart Rishi Sunak and reaffirmed his commitment to further strengthen the India-UK strategic partnership in the third term of the NDA government and reviewed the progress made in the ongoing FTA negotiations. The two leaders greeted each other with a warm hug as they met on the sidelines of the 50th G7 Summit at the luxury resort of Borgo Egnazia in Apulia. "It was a delight to meet PM @RishiSunak in Italy. I reiterated my commitment to further strengthen the India-UK Comprehensive Strategic Partnership in the third term of the NDA Government," Modi posted on X soon after their meeting. "There is great scope to deepen ties in sectors like semiconductors, technology and trade. We also talked about further cementing ties in the defence sector," Modi wrote. The spokesperson of the Ministry of External Affairs Randhir Jaiswal described the meeting between the two leaders as "fruitful." "The two leaders took stock of bilateral relations in areas of defence and security, trade and economic collaboration, critical and high technology sectors and people to people connect. They discussed implementation of Roadmap 2030 and progress made in ongoing FTA negotiations," Jaiswal posted on X. Sunak and Modi last met in person at the G20 Summit in New Delhi last September, when they had agreed to accelerate the FTA talks with the hope of signing off before India's general election. However, the trade talks are now expected to resume only after a new UK government is elected on July 4. The India-UK FTA negotiations, which opened in January 2022, are aimed at significantly enhancing bilateral trade – currently worth around 38.1 billion pounds a year as per official statistics from earlier this year. Modi's meeting with Sunak followed his talks with French President Emmanuel Macron. He is attending the summit on the invitation of Italian President Georgia Meloni and will address an Outreach session on Artificial Intelligence, Energy, Africa and the Mediterranean alongside leaders of other invited countries and Pope Francis.
Source: The Economic Times
The Indian Textile Accessories and Machinery Manufacturers Association (ITAMMA) has signed a memorandum of understanding (MoU) with the Iran Textile Exporters and Manufacturers Associations (ITEMA) during the ITM 2024 Exhibition, held earlier this month in Istanbul. This agreement marks a significant step in strengthening business ties between India and Iran, aiming to boost technology exchange and enhance business opportunities for members of both associations. The MoU will see both associations collaborate closely to create a technology exchange platform through technology scouting missions. Additionally, they will enhance business opportunities via business scouting missions, facilitating a robust exchange of knowledge and resources. On behalf of ITAMMA, president Bhavesh Patel signed the MoU, while secretary general Saeed Ghadari represented ITEMA. "We take pride in being closely associated with ITM, and appreciate the remarkable progress made in the ITM exhibitions, both in its arrangements and its communication with both the communities of the exhibition, the exhibitors and the visitors, which is helping them to add on to the outcome of each ITM Exhibition," Bhavesh Patel said in a press release. The International Textile Machinery Exhibition (ITM 2024) took place at Tüyap Fair and Congress Center from 4 to 8 June 2024. Organised by Teknik Fairs Inc and Tüyap Tüm Fuarcilik Yapim Inc, the event spanned 13 halls covering an area of 120,000 square metres. ITM 2024 broke new records with participation from nearly 1,385 companies and company representatives from 71 countries. The exhibition attracted 66,200 visitors from 99 countries, with 45 per cent coming from abroad and 55 per cent from within Turkiye. ITAMMA showcased its presence at stall no. 501C in Hall No. 5, offering promotional material and opportunities for seven of its members to participate under various competitive schemes within the ITAMMA Pavilion. The stall saw active attendance by ITAMMA office bearers, including past president Jugal Kishore Pansari. The association distributed approximately 500 copies of the ITM 2024 GUIDE, which contained detailed information about each member participant, a map of the exhibition, and useful information about Istanbul. Out of 46 Indian exhibitors, 26 were ITAMMA members. The Directorate of ITAMMA engaged with around 20 Indian companies during the exhibition, inviting them to apply for ITAMMA membership, a process they will complete upon returning to India. Additionally, president Patel offered the ITM 24 Guide of ITAMMA to the managing director of the Korea Textile Machinery Association. Following a fruitful discussion on signing an MoU for the mutual benefit of the members, ITAMMA submitted a draft MoU to them for approval. The MoU is expected to be signed and exchanged very shortly through a virtual meeting. Shailesh Patel, partner at Samruddhi Engineering, and N D Mhatre, director general (Tech) at ITAMMA, also attended the occasion.
Source: Fibre2fashion
Amid the crisis in the Red Sea, many of exporters in the region are opting for air cargo despite higher freights cost to meet their obligation in a timely manner. According to insiders, exporters of apparel, pharmaceuticals and auto parts are opting for air cargo at times to meet the urgency. According to exporters, it has been nearly eight months, but the crisis at the Red Sea refused to relent impacting their bottom lines. “Amid the crisis, the freight rates have been doubled as merchant vessels takes different route to reach to the US and other European markets. The industry is not only losing precious revenue on account of higher freight cost and higher insurance premium but also the merchant vessels takes 5-6 days more to reach to the designated destination as they take different routes. So in such a scenario, at time some of the exporters are using air route to reach faster to their customers,” said Harish Dua, managing director of Ludhianabased KG Exports. The volume of the air cargo may be small compared to merchant vessels, but it has picked up in last eight months. According to insiders, exporters of apparel are also using air cargo at times to meet the urgency besides pharmaceutical and auto parts. The major apparel hubs in the northern India are in Ludhiana, Jalandhar, Panipat, Gurugram and Noida. Punjab and Haryana alone have around 200 exporters. For India, Red Sea is an important shipping route for goods traded to the US and European countries. Commodities such as apparel, auto parts, engineering goods, pharmaceuticals and chemicals from India pass through the route. It is estimated that about 80% of India’s merchandise trade with Europe passes through this route. So, the disruption has had a critical effect on exports from India, particularly from the northern region. According to exporters, the crisis has not only hit their bottom lines but also hit the export orders. “If we factor the high sea freight cost which has almost doubled since the crisis, then the product doesn’t remain competitive. Moreover, many of the European countries are in crisis so both the factors combined leads to lesser orders,’” said an exporter from Haryana. According to Danish shipper Maersk, the latest threats of escalation of violence in the Red Sea in May amid the ongoing Israel-Hamas conflict are likely to hit the shipping industry’s capacity by 15-20 per cent. It is worth noting that the crisis started in October last year when Iran-backed Houthis seized and launched aerial attacks against dozens of merchant and naval vessels in the Red Sea.
Source: India Today
The first ever ‘Sourced SRI LANKA Fashion and Textile Trade Show’, was organised with the primary objective of promoting Sri Lanka Apparel Exports to UK and EU opened yesterday at London Horticulture Hall with over 50 companies participating. The event was a success, as many buyers from UK and EU visited and held Biz to Biz meetings with local exhibitor. Since an Apperal promotion event of this nature was not held for over two decades key stake holders of the industry, Lanka Apparel Sourcing Association (SLASA), Export Development Board (EDB), Joint Apparel Association Forum (JAAF), with the support of the Sri Lankan High Commission in the UK who organised the event.
High Commissioner of Sri Lanka in the UK, Rohitha Bogalagama and several other key figures were special guests. There were several Cat Walk parades with panel discussions during the two-day event which concludes today.
Source: Daily News
Australians purchase more clothing per person than any other country, driving a fast fashion waste crisis, according to new research from the Australia Institute. The study reveals that Australia has overtaken the US as the world’s largest consumer of textiles per capita, with much of this consumption attributed to fast fashion that ends up in landfill. Key findings from the research indicate that Australians buy an average of 56 new clothing items per year, surpassing the US at 53 items, the UK at 33 items, and China at 30 items. The average value per item purchased by Australians is AUD $13, significantly lower than the UK ($40), USA ($24), Japan ($30), or even Brazil ($16). Annually, more than 200,000 tonnes of clothing are discarded into landfill, equivalent to nearly four Sydney Harbour Bridges in weight, as per the Textile Waste in Australia report. The report suggests several policy measures to curb fast fashion waste, including implementing a French-style fast fashion tax, banning the export of textile waste within five years, and providing government-funded discounts for garment repairs. Additionally, it calls for federal investment in developing an Australian circular textiles industry and increased support for community op shops and recycling initiatives. The Australia Institute's polling research indicates that nearly two-thirds (63 per cent) of Australians are concerned or very concerned about the environmental impact of textile waste. When asked who should be responsible for eliminating this waste, 71 per cent pointed to businesses, followed by consumers at 57 per cent and the government at 54 per cent. The research also highlights a gap in public knowledge regarding textile materials. Fewer than half (46 per cent) of respondents could identify petroleum as the source of polyester, and only 27 per cent were aware that more than half of the clothes sold in Australia are made from plastic.
Source: Fibre2fshion
ISLAMABAD: Textile and clothing exports experienced a significant rebound with double-digit growth in May after a slower growth in the previous two months. According to data compiled by the Pakistan Bureau of Statistics (PBS), exports increased 18 per cent to $1.55 billion in May, compared to $1.32 billion in the same month last year. On a month-on-month basis, exports surged 25.94pc. However, textile and clothing exports posted a paltry growth of 1.41pc to $15.24bn in 11MFY24 from $15.02bn last year. The increase in growth was attributed to the release of the stuck orders from previous months. The government has introduced various measures, including increasing the tax rate on exporters’ personal income in 2024-25. The impact of these measures will be visible in the coming months. The PBS data showed exports of readymade garments rose 30pc by value in May and 42.70pc by quantity, while knitwear grew 24.26pc by value and 36.70pc by quantity. Bedwear posted a growth of 37.67pc in value and a growth of 45.67pc in quantity. Towel exports rose 18.18pc in value and 29.50pc in quantity, whereas cotton cloth went down by 1pc in value but rose 23.75pc in quantity, respectively. Yarn exports fell by over 35.96pc in May over the same month last year. The exports of made-up articles, excluding towels, increased by 32.54pc, and tents, canvas and tarpaulin went up by 10.85pc in May. The import of textile machinery declined by 6.04pc in May, indicating that expansion or modernisation projects were not a priority. The import of synthetic fibre declined by 5.98pc, and that of synthetic and artificial silk yarn by 2.41pc. However, other textile items increased by 60.59pc during the month. The import of raw cotton declined by 46.95pc. However, the import of second-hand clothes posted a growth of 11.07pc.In the first 11 months of FY24, total exports increased by 1084pc to $28.12bn this year against $25.26bn over the same period last year.
Oil imports
PBS data showed that oil imports dipped by 0.24pc during the first 11 months of FY24 to $15.34bn from $15.38bn a year ago.During July-May, the import of petroleum products fell by 11.69pc in value and 4.98pc in quantity. Crude oil imports increased by 17.84pc in quantity while the value increased by 12.06pc.
Mobile phones
Mobile phone imports surged by 213.97pc to $1.62bn in 11MFY24 from $516.48m over the same period last year, representing the largest share of overall machinery import value in the first 11 months of FY24. Other mobile apparatus grew 23.97pc to $426.19m in 11MFY24 from $343.79m last year.
Source: Dawn
