Giriraj Singh, the Union Minister of Textiles, held discussions with prominent members of the industry, Export Promotion Councils and associations that encompassed the whole textile value chain. Pabitra Margherita, Union Minister of State for Textiles, Rachna Shah, Secretary Textiles and senior officials from the Ministry were present during the interaction. Sudhir Sekhri, Chairman, AEPC, Harish Ahuja, MD, Shahi Exports; Virender Uppal, MD, Richa Global Exports, Pallab Banerjee Pearl Global and other leading exporters were also present in the meeting. Singh emphasised how crucial it is to draw significant investment into the industry, develop cutting-edge, world-class infrastructure, make doing business easier, and concentrate on creating jobs, particularly in labour-intensive industries like apparel and clothing. Stakeholders reported that commerce is improving as demand for goods and services abroad rises, and China+1 policy benefits India. By the end of 2026, Bangladesh is expected to leave the LDC category and formally become a “Developing Country.” As a result, Bangladesh will no longer enjoy the duty advantage which further favours Indian businesses. Industry concerns included free trade agreements, restrictions on cotton exports, emphasis on design development, and the inclusion of new products in the PLI 2 programme with minimal investment requirements. Additionally, since the Technological Upgradation Fund (TUF) programme has been discontinued, a thrust was placed on to encourage technological investment. In order to draw in additional investment, it was also emphasised that India ought to have an investment summit specifically focused on textiles and clothing. It was noted that as sustainability is gaining popularity everywhere, there should be a “green fund” to support these activities and that tax breaks for these investments are also necessary. It was also emphasised to guarantee the supply of high-quality Man-Made Fabric (MMF) and to see that India’s exports were not just limited to the three main markets of the United States, the European Union, and the United Kingdom, but that export trade would be done with various other markets around the world. The industry representatives expressed gratitude for the Union Government’s major initiatives, such as the PM MITRA Park Scheme, PLI Scheme for Textiles, National Technical Textiles Mission, and the SAMARTH skill development programme, which will help to draw in investment, expand capabilities, and create jobs.
Source: Apparel Resource
The Goods and Services Tax (GST) Council, on Saturday, June 22, convened under the leadership of Union Finance Minister Nirmala Sitharaman. The meeting, announced shortly after Sitharaman assumed office as Union Minister of Finance and Corporate Affairs, underscores the council's active role in current economic policy. During the session, Finance Minister Sitharaman reaffirmed the Union Government's commitment to supporting states through timely tax devolution, Finance Commission grants, and settlements of GST compensation. She highlighted the 'Scheme for Special Assistance to States for Capital Investment', emphasising that while most loans are unrestricted, a portion is contingent upon states implementing citizen-centric reforms and specific capital projects across various sectors. Sitharaman encouraged states to utilise these loans effectively by meeting the prescribed criteria.
Source: The Economic Times
Synopsis India and Korea are progressing with talks to upgrade their existing free trade agreement (FTA), known as the Comprehensive Economic Partnership Agreement (CEPA). The Department of Commerce is collaborating with various ministries such as heavy industries, steel, and chemicals to prepare the offer list for the negotiations. New Delhi: With talks to upgrade the existing free trade agreement (FTA) moving forward between India and Korea, the department of commerce is engaging with different ministries, including heavy industries, steel, and chemicals, to prepare the offer list, an official said. Preparation of the list is part of the negotiations, which are underway, for the upgrade of the existing FTA between the two countries, dubbed as comprehensive economic partnership agreement (CEPA). The agreement was operationalised in January 2010. So far, 10 rounds of talks have been concluded. The official said both sides have exchanged the request list and "are working on the offer list" and for that the commerce ministry is holding discussions with different ministries, including steel, heavy industries, textiles, chemicals and petrochemicals. India has sought greater market access for certain products such as steel, rice, and shrimp from South Korea with a view to boost exports of these goods, the official added. India has flagged issues over Korean firms not buying Indian steel. The exercise assumes significance as both sides have shared the hope that the CEPA upgradation negotiations would play an important role in strengthening and deepening economic cooperation between both countries. In such agreements, two or more countries either significantly reduce or eliminate customs duties on the maximum number of goods added between and ease norms to promote trade in services and boost investments. Both sides review the agreement at a mutually agreed time period. In general, such review or upgrade exercises include implementation issues, rules of origin; verification process and release of consignments; customs procedures; further liberalisation of trade in goods; and sharing and exchange of trade data. India has also raised concerns on the growing trade deficit between the two countries. India's exports to Korea dipped to USD 6.41 billion in 2023-24 from USD 6.65 billion in 2022-23 and USD 8 billion in 2021-22. The imports stood at USD 21.13 billion in the last fiscal as against USD 21.22 billion in 2022-23 and USD 17.5 billion in 2021-22. According to economic think tank Global Trade Research Initiative (GTRI). India's trade deficit with South Korea increased at a much higher rate compared to its trade deficit with the world. It said India's trade with South Korea has shown significant changes in the periods before and after the implementation of the CEPA. The average exports from India to South Korea before the CEPA (2007-09) were valued at USD 3.4 billion, while the average imports stood at USD 7.3 billion, leading to an average trade deficit of USD 4 billion. Post-CEPA (2022-24), the average exports increased to USD 7.1 billion, and imports surged to USD 19.9 billion, resulting in a much larger average trade deficit of USD 12.8 billion, the GTRI report said, adding this indicates an increase in the trade deficit by USD 7.2 billion from the pre-CEPA period to the post-CEPA period, marking a 220 per cent increase. Besides, it said Indian exporters are facing various non-tari barriers in South Korea, including stringent standards, regulations, and certification requirements and these barriers make it difficult for Indian goods to penetrate the South Korean market. "There are challenges related to gaining better market access for Indian agricultural products like shrimp, rice, steel, pharmaceuticals, and services in South Korea. Indian businesses seek more favourable terms to compete effectively in these sectors," GTRI Founder Ajay Srivastava said. There are concerns regarding the rules of origin provisions under the CEPA which determine the eligibility of products for preferential tariffs, he said, adding that India aims to ensure that these rules are not overly restrictive and that they facilitate trade rather than hinder it. According to the GTRI, India is looking for greater liberalisation in the services sector, including healthcare and information technology (IT), and easier access for Indian professionals and service providers in the South Korean market. There is a need for mutual recognition of standards, qualifications, and certifications to facilitate smoother trade and investment flows between the two countries, it said. It added that while India has granted significant tari concessions under the CEPA, there is a push for South Korea to reciprocate with more meaningful concessions, especially in sectors where Indian products have competitive advantages. "Addressing these issues is crucial for India to achieve a more equitable and mutually beneficial trade relationship with South Korea under the CEPA framework," Srivastava said.
Source: Economic Times
The government is preparing to modify its production-linked incentive (PLI) scheme for the textile sector, following a tepid response from industry players. The revised scheme is expected to include additional product categories such as t-shirts and innerwear, reported Mint.Introduced in September 2021 with a budget allocation of Rs 10,683 crore, the PLI scheme aimed to stimulate domestic manufacturing of man-made fabric (MMF) garments and technical textiles. MMF includes synthetic materials like viscose, polyester, and acrylic, while technical textiles are utilised in specialised products such as personal protective equipment, airbags, and bullet-proof vests. The proposed modifications come in response to a decline in India's textile exports, which decreased by 11.69 per cent from USD 16.24 billion in 2018 to USD 14.34 billion in 2023. Industry stakeholders have suggested that lowering the minimum entry level could make the scheme more accessible to smaller manufacturers. Under consideration are plans to extend the facility setup period from two years to over three years. The current scheme's structure, with its substantial capital requirements, has been criticised as favoring large textile mills over apparel factories. To date, the government has approved 64 applicants under the scheme, with proposed investments totalling Rs 19,798 crore. These projects are projected to generate a turnover of Rs 1.94 crore and create 245,362 jobs. The first set of approved applicants is scheduled to begin receiving incentives from 2025-26. The textile industry awaits further details on the proposed changes, as the government seeks to bolster this crucial sector of the Indian economy. Introduced in September 2021 with a budget allocation of Rs 10,683 crore, the PLI scheme aimed to stimulate domestic manufacturing of man-made fabric (MMF) garments and technical textiles. MMF includes synthetic materials like viscose, polyester, and acrylic, while technical textiles are utilised in specialised products such as personal protective equipment, airbags, and bullet-proof vests. The proposed modifications come in response to a decline in India's textile exports, which decreased by 11.69 per cent from USD 16.24 billion in 2018 to USD 14.34 billion in 2023. Industry stakeholders have suggested that lowering the minimum entry level could make the scheme more accessible to smaller manufacturers. Under consideration are plans to extend the facility setup period from two years to over three years. The current scheme's structure, with its substantial capital requirements, has been criticised as favoring large textile mills over apparel factories. To date, the government has approved 64 applicants under the scheme, with proposed investments totaling Rs 19,798 crore.
These projects are projected to generate a turnover of Rs 1.94 crore and create 245,362 jobs. The first set of approved applicants is scheduled to begin receiving incentives from 2025-26.
The textile industry awaits further details on the proposed changes, as the government seeks to bolster this crucial sector of the Indian economy.
Source KNN
The talks between India and Korea on the review of the Comprehensive Economic Partnership Agreement (CEPA) have made significant headway, with both sides exchanging the list of ‘requests’ where they want further opening up of trade. From the Korean side the demand has come in regard to sectors like automobiles, textiles, chemicals and petrochemicals while India is seeking greater access to the Korean markets for steel, rice, shrimp and clothing. “The requests made by Korea are being discussed with the ministries of steel, textiles, chemicals and petrochemicals and heavy industries. Based on the discussions, offers of the request will be finalised,” senior official said. The revision of the CEPA has been painfully slow as both sides are approaching the matter from different standpoints. Korea wants to expand the agreement while India is seeking review to address the expanding trade deficit with Korea. The review of CEPA – which was signed in 2009 and came into force in 2010 – was agreed to in 2016. Since then ten rounds of talks have been held. The last round of discussions on the subject were held earlier this year. Some Korean officials have been on record saying that talks may. finally conclude in 2024 but dates for the next round of talks is yet to be finalised. Officials say that the next dates of next round of talks will be finalised when both sides are ready with their offers. According to experts, Korea’s attempt is to increase the level of openness of the Indian market or atleast get it on par with India-Japan FTA. From South Korea’s perspective, the effectiveness of bilateral trade liberalisation has been questioned as key export sectors such as automobiles have been excluded from concessions. Indian exporters have complained of the unwillingness of the Korean industry to buy items like steel from India despite the competitiveness. Apparel makers have complained of safety standards being kept so high as to make exports difficult. The agreement covers trade in goods, investments, services, and bilateral cooperation in areas of common interest. Under the CEPA, Korea was to phase out/reduce tariffs on 90 percent of Indian exports, while India would phase out/eliminate tariffs on 85 percent of Korean exports. Total merchandise trade between India and South Korea grew from $16.91 billion in 2011 to $ 27.5 billion last year. While India’s exports have stayed in $ 5-7 billion range during the period, imports have increased from $ 12.4 billion in 2011 to $ 21.1 billion in 2023-24.
Source: Financial Express
Over 350 domestic players and foreign buyers from more than 50 nations will participate in the garment fair, beginning from June 25, Apparel Export Promotion Council (AEPC) said on Sunday. The fair, aimed at boosting garment exports from India, will be inaugurated by Textiles Minister Giriraj Singh at the Yashobhoomi Convention Centre Dwarka, here, it said. AEPC Chairman Sudhir Sekhri said that the garment exports rose by 10 per cent in May. “As we are seeing a spike in demand from across the world from the last two months, this fair presents to us the opportunity of harnessing the potential arising from the growth in demand,” he said. Mithileshwar Thakur, Secretary General AEPC, said that the objective of the India International Garment Fair (IIGF) is to provide a marketing platform to micro, small and medium exporters to showcase the latest garment and fashion accessories trends and the range and variety of Indian offerings to the rest of the world. (PTI)
Source: Daily Excelsior
ISLAMABAD: Pakistan’s economy pivots around two essentials, ie, textiles and energy because 60% of our exports constitute textiles, while 30% of imports comprise energy. This becomes more critical when various studies project the export potential at $50 billion per year by 2030, though they were worth only $16.5 billion in FY 2022-23 with the historical maximum reaching $22.1 billion in FY22. Some sources put this potential even at $100 billion. If realised, it can easily pull us out of the perennial malaise of the deficit in balance of payments, the primary cause of all of our economic woes. What further accentuates this inference is that the textile sector employs about 45% of the total labour force associated with the manufacturing sector. Also, the industry is heavily dependent on cotton, therefore, any disturbance in the cotton crop also affects the performance of the sector and the economy. Cotton’s challenges have only grown with time. Its yield was 615 kg per hectare in 1990 and 617 kg in 2020, which is a stark reflection of the poor performance in this segment, especially when China’s yield, now touching 2027 kg/hectare, grew by more than 150% during the said 30 years. The decades of negligence in conjunction with the exponential rise in prices of natural gas and electricity over the past 18 months appears to have finally placed the industry on ventilator. Expecting the bureaucrats managing such value chains to provide required solutions is a great fallacy. Devoid of the subject knowledge and required corporate leadership experience, they entirely lack the essential tools. What further worsens this handicap is the fact that incompetence does not come alone; it also breeds intolerance, arrogance and cronyism and together they crowd all merit and professionalism out of the boardrooms. Isn’t this the story of our, almost, every PSE?
Source: Dawn
United Kingdom: The High Commission of Sri Lanka hosted the participants of the ‘Sourced Sri Lanka’ Fashion & Textile Tradeshow which concluded on June 17 at the Royal Horticultural Hall, here to a network reception at the High Commission. The first of its kind held in the UK (and after 22 years) the event showcased the best of Sri Lankan fashion and textiles with 80 exhibiting stalls. It provided a unique platform for UK buyers and fashion enthusiasts to engage directly with Sri Lankan manufacturers and designers. The event was jointly organized by the Sri Lanka Export Development Board (EDB), Sri Lanka Apparel Sourcing Association (SLASA), and Joint Apparel Association Forum (JAAF) in collaboration with the High Commission of Sri Lanka In addition to panel discussions by industry leaders and experts and fashion shows, the launch of “Your Vital Island” also took place. High Commissioner Rohitha Bogollagama, said, “I am also pleased to see Sri Lanka’s National Export Brand of the EDB was launched at this event with the presence of a distinguished audience.” “Under Sri Lanka’s National Export Strategy (NES), Sri Lanka’s National Export Brand was developed to present Sri Lanka’s exports in international markets through an integrated approach, featuring a cohesive national brand identity.” “Under the new brand identity called “Your Vital Island”, it will signify not only the unique qualities of our products, but also our commitment to your sourcing destination, consistently delivering products that embody authenticity, sustainability, and competence. He said that the UK is the second-largest market for Sri Lanka apparel exports and the ‘Sourced Sri Lanka’ Road Show Underscored Sri Lanka’s commitment to excellence, sustainability, and innovation in the global fashion industry.
Source: Daily News
