Synopsis Textiles Minister Giriraj Singh announced that the government has sanctioned a production-linked incentive (PLI) scheme exceeding Rs 10,000 crore for the textiles industry, with plans under consideration to extend it to the garments sector. Additionally, he highlighted that the ministry is developing a strategy to surpass China in the textile sector. Textiles minister Giriraj Singh on Tuesday said the government has approved over Rs 10,000 crore production linked incentive (PLI) scheme for textiles and is now considering extending it to the garments sector. He also said that the ministry is framing a roadmap to move ahead of China in the sector. "We are considering covering your (garments) sector also (under the scheme)," Singh said at the India International Garment Fair (IIGF) organised by the Apparel Export Promotion Council (AEPC), adding that the industry should target $50 billion of exports in the coming years. In 2021, the government approved the ₹10,683 crore PLI scheme for textiles for five years to promote the production of man-made fibre apparel, fabrics and products of technical textiles.
Source: Economic Times2
Union Minister for Textiles, Shri Giriraj Singh inaugurated the 71st edition of the India International Garment Fair (IIGF) at Yashobhoomi Convention Centre today. Delivering his inaugural address, the Union Minister emphasized that the India International Garment Fair (IIGF) offers a unique marketing platform for micro, small, and medium exporters, showcasing India's latest trends and diverse offerings to the rest of the world. Shri Giriraj Singh further said that developing world class manufacturing facilities is a must for realising the Prime Minister’s vision of “Make in India “with “Zero Effect; Zero Defect” at each level of the value chain.Shri Singh also called for the adoption of the 'hub and spoke' model to enhance domestic manufacturing, encouraged industry collaboration and underscored the importance of establishing Indian brands. The ministry is also poised to revive the Scheme for Integrated Textile Parks (SITP) to create internationally standardized parks.Shri Giriraj Singh stated that, “Today, India is one of the fastest growing economies in the world with a GDP growth rate of 7.2% and is expected to be 3rd largest economy by 2027-28.” The convergence of a positive domestic outlook with a growth-oriented political establishment has provided a conducive ecosystem for business in India. Several measures have been taken by the Government of India to enhance the infrastructure sector and ease of doing business, he added. Further, the Minister stated that, the Indian Apparel and textiles market is of the size of 165 billion USD which has to touch 350 USD billion; a target, which has been fixed after industry consent. I request you to take it to 50 billion USD by 2030. Prime Minister made a roadmap to promote technical fiber and Geo textile, which is providing huge options for growth. “I have said that my challenge is not Bangladesh. I would like to take ahead of China in time to come. Bangladesh water and raw material charges are going high. Further Shri Singh suggested that we will make small clusters for smaller players in India to boost RMG exports”. Textiles Minister Giriraj Singh announces the expansion of the Rs 10,000 crore PLI scheme to the garment sector to boost domestic manufacturing and exports. Addressing the India International Garment Fair, Singh emphasizes revamping textile parks, and promoting green textiles will be our focus. Shri Sudhir Sekhri, Chairman AEPC during his address underlined, “the global headwinds negatively affected Indian apparel exports. But despite these adverse scenarios, the Indian apparel export industry was able to hold its own and contain the damage to quite an extent. Shri Mithileshwar Thakur, Secretary General said that there is a greater chance for Indian apparel exporters to expand its footprint across developed countries in coming years. The Indian apparel industry must in-cash this opportunity and start dreaming big. Knowledge sessions are also being organised on the sidelines on the 25th and 26th June’2024 covering various topics like Navigating Global Trade: Challenges and Opportunities for the Industry, The Efficiency Advantage: Driving Manufacturing - Excellence in Apparel and Sustainable Fashion: From Concept to Reality.
This fair being organised by the Apparel Export Promotion Council (AEPC) through the International Garment Fair Association (IGFA), in association with three major garment Associations of India namely, Clothing Manufacturers Association of India (CMAI), Garment Exporters & Manufactures Association (GEMA) & Garment Exporters Association of Rajasthan (GEAR), is a testimony of the collective spirit, team-work and synergies built by these associations to achieve greater goal. More than 600 buyers from 50 countries participated in the event. 71st Edition will also host two fashion shows each day, from 25th to 27th June’2024, showcasing the best of the collections exhibited during the show.
Source: PIB
Synopsis India’s goods exports in FY24 were $437.1 billion and imports were $675.4 billion. The ministry has been developing standard operating procedures to negotiate free trade agreements with other countries and could come up for discussion, said another person aware of the meeting. Exporters are also likely to take up the issue of extending the Production-Linked Incentive (PLI) scheme to leather intensive sectors such as leather and footwear. Commerce and industry minister Piyush Goyal will meet exporters and industry on Thursday to take stock of India’s exports and deliberate ways to push outbound shipments from the country. Issues related to container shortage, Red Sea crisis and export targets are likely to be discussed, officials said. “It is a review meeting to on state of exports and export promotion,” said an official. India’s goods exports in FY24 were $437.1 billion and imports were $675.4 billion. The ministry has been developing standard operating procedures to negotiate free trade agreements with other countries and could come up for discussion, said another person aware of the meeting. Exporters are also likely to take up the issue of extending the ProductionLinked Incentive (PLI) scheme to leather intensive sectors such as leather and footwear. Exporters have already raised with the finance ministry the issue of high import duty on wet blue leather which is used in making high-end luxury goods. Separately, gems and jewellery exporters on have sought a reduction in import duty on gold, silver, and platinum bars to 4% in the forthcoming Budget from 10-12.5% now.
Source: Economic Times
NEW DELHI - India plans to expand production linked incentives to small textile firms soon, part of efforts to increase garment exports to $50 billion by 2030, the federal textile minister said on Tuesday. The government introduced incentives for the textile sector in 2021, and has so far approved 64 proposals worth 198 billion rupees to promote production of man-made fibre fabric, garments and technical textiles.
"We are considering to review the PLI scheme," Giriraj Singh, federal textile minister, said at the India International Garment Fair, noting the scheme had emerged as a big success to attract investments and expand production.He said state incentives for improving product quality, entering new markets and signing free trade agreements with several countries, including the UAE and Australia, could help the labour-intensive industry - a priority for the Prime Minister Narendra Modi's administration. "We are working on a roadmap to move ahead of China, not only Bangladesh in textiles," he said, adding his ministry would soon hold meetings with big companies to understand their concerns. India's $170 billion textile and apparel industry, which employs over 45 million, has been facing a decline in exports as European and the U.S. consumers cut back spending in 2023 amid tight monetary conditions. Textile and apparel exports declined to $35.94 billion in the 2023/24 fiscal year ending in March from a record $44.51 billion in 2021/22, commerce ministry data showed. Garment exporters are lobbying government ministers, ahead of the annual budget next month, seeking a lower investment threshold limit of 150 million to 300 million rupees under the PLI scheme from 10 to 30 billion rupees, besides higher subsidies on bank loans.
Currently, the government offers 4%-6% cash incentives over a period of five years to the selected companies for achieving production targets, industrialists said. "The government needs to lower the threshold investment limit and expand PLI benefits to all garments across all fibres," said Mithileshwar Thakur, secretary general, Apparel Export Promotion Council, an apex body of small exporters.
Source Hindustan Times
Synopsis Nicholas McCaffrey aims to enhance the scope and impact of the existing trade agreement between India and Australia, working towards formulating a comprehensive free trade agreement to strengthen economic relations between the two nations. Kolkata: Australian Deputy High Commissioner Nicholas McCaffrey on Tuesday said his country is currently engaged in discussions with the Indian government to establish a comprehensive free trade agreement between the two nations. Speaking at an interactive session organised by the Confederation of Indian Industry, McCaffrey highlighted that while there is an existing Economic Cooperation and Trade Agreement (ECTA) with India, signed in 2022, Australia aims to upgrade this pact to enhance its scope and impact. "With the Lok Sabha elections over, Australia is now in talks with Indian officials to formulate a comprehensive free trade agreement," McCaffrey added. He emphasised the significant growth in economic ties between the two countries, noting that bilateraltrade has doubled to USD 26 billion over the past decade. McCaffrey underscored the complementary nature of India-Australia economic relations and highlighted the increasing number of direct flights between the two nations as further evidence of strengthening ties.
Source: Economic Times
Synopsis During a pre-budget meeting with Finance Minister Nirmala Sitharaman, industry representatives urged for reduced indirect taxes and rationalized duty structures. FIEO's Ashwani Kumar requested extending the Interest Equalisation Scheme for five years. Reliance Industries sought a review of tariffs on Chinese imports, and Nasscom pushed for easing transfer pricing rules. In an effort to boost the economy, representatives of various industries on Tuesday urged Finance Minister Nirmala Sitharaman to reduce the incidence of indirect taxes and rationalise duty structure wherever required. In a pre-budget meeting with Finance Minister Nirmala Sitharaman, FIEO president Ashwani Kumar made a case for an extension of the Interest Equalisation Scheme for the next five years. "We request the scheme which is valid till 30th June, 2024 may be extended for a period of 5 years. Looking into the rise in interest rates consequent to the increase in Repo rate from 4.4 per cent to 6.5 per cent in the last 2 years, the subvention rates may be restored back from 3 per cent to 5 per cent for manufacturers in MSMEs," Kumar said. Kumar also urged for the establishment of an Indian shipping line of global repute to reduce foreign shipping line dependency and save foreign exchange. Emerging from the nearly two-hour meeting, Ajay Sardana, President & Head of Petchem-Industry Affairs, at Reliance Industries, said there is a need for a review of taris on imported goods from China related to the petrochem industry. "China has created a lot of overcapacity...they are putting a lot of products in India at a very cheaper price and a lot of dumping is happening. So, what we requested is a review of the tariffs regime so that the domestic capacity can be increased," Sardana said. Shree Cement Chairman HM Bangur said the government should spend more on capital expenditure so that the cement industry benefits. "We sought faster and simultaneous environmental clearances and no hindrance in capex," he added. Representing the services sector, Nasscom Vice President and Head of Public Policy Ashish Aggarwal said, "From the Budget perspective, we are looking for easing the transfer pricing regime as a lot of our industry is not able to benefit from transfer pricing provision." Nasscom also made a case for enhancing the scope of the safe harbour regime by increasing the threshold limit from Rs 200 crore in international transactions to Rs 2,000 crore so that global capability centres can take benefit from the safe harbour, he said. "We also suggested for strengthening of advance pricing agreement mechanism for promoting ease of doing business," he added. Gujarat Chamber of Commerce and Industry Vice President Sandeep Engineer said, "We represented small and medium industries. The 45-day payment window is positive but have sought some relaxation in the time cycles." He also made a case for changing the definition of MSME and rationalisation of taxes for Limited Liability Partnership (LLP) and high net-worth individuals.
Source: Economic Times
A request for more visas for Indian citizens, often described in the British press as one of the central challenges to concluding an India-U.K. ‘free trade’ agreement (FTA), was not the top priority for the government, Indian High Commissioner to the U.K. Vikram Doraiswami has said. “Visas are not the first priority for us in an FTA,” Mr. Doraiswami said. He was speaking at the first session of the India Global Forum on Monday in London. The forum, an annual event that brings together Indian and British policy makers, industrialists and others, is organised by Manoj Ladwa, a corporate lawyer-turned-government affairs adviser and close associate of Prime Minister Narendra Modi. India and the U.K. have been negotiating a trade agreement since 2022, with the 14th round completed before the Indian elections kicked off in April this year. India has been seeking greater ease of movement for highly skilled professionals (such as those in the IT and healthcare fields) to come to the U.K. to deliver services. It has also sought a reduction in tariffs on a number of goods. The U.K. has wanted greater access to the Indian services sector and a cut in duties on various goods, including whiskey and cars. “We are not seeking to be essentially looking at the FTA as a means to bring people in the U.K.,” Mr. Doraiswami said. India was looking for a reasonable level of movement of natural persons to deliver services in the territory of the trade partner (the U.K. in this case) under Mode 4 of GATS (General Agreement on Trade in Services), he said. Mr. Doraiswami specifically referred to intra-company transfers, saying there were over 970 subsidiaries of Indian companies in the U.K and that firms would want an easier movement of employees across borders. Student visas Regarding student visas, Mr. Doraiswami said it was up to the British electorate to decide on questions such as the post-study work visa in the U.K. The programme was recently questioned by Prime Minister Rishi Sunak’s Conservative government on the grounds that the visas were being abused as a door to migration to the U.K. The U.K. government’s independent adviser, however, had declared that the system was not being abused. Several of Mr. Sunak’s Cabinet colleagues also opposed restricting the system. Mr. Sunak consequently backed away from plans to restrict the visa. “We’re not asking necessarily that you must make this [post-study visas] a critical part of the FTA,” Mr. Doraiswami said as he suggested that Indian students would judge the attractiveness of the U.K. as an educational destination relative to, for instance, the U.S., Canada or Australia where they had opportunities to work after their degree. Asked about greater India-U.K. cooperation across other dimensions, such as the security partnership, Mr. Doraiswami said that the two countries were looking to work together more on security policy but also the “hard edge of security itself “, for instance, military-tomilitary cooperation and co-development and co-production of technology. This would entail achieving a certain level of interoperability between the Indian and U.K. militaries, he said. Without mentioning China, Mr. Doraiswami said that for India it was critical that the rulesbased order and freedom of navigation were observed in the Indo Pacific and with the capacity of all states to contribute to the security of the region. This was also an area of importance to the U.K. and other European countries and the two countries could work together on this.
Source: The Hindu
The UK’s Opposition Labour Party on Monday criticised the governing Conservatives led by Prime Minister Rishi Sunak of having “over-promised and under-delivered” on relations with India and declared that it is “ready to go” on striking a free trade agreement (FTA) if it wins the July 4 general election. Addressing the India Global Forum (IGF) in the final full week of the election campaign, the party’s shadow foreign secretary David Lammy laid out his ambitions of the FTA being “a floor not a ceiling” of the partnership he aspires to with his “friend” External Affairs Minister S Jaishankar. India and the UK have completed 13 rounds of FTA negotiations to enhance the estimated GBP 38.1 billion a year trading relationship, with talks currently stalled amid the election cycles in both countries. “Many Diwalis have come and gone without a trade deal and too many businesses have been left waiting,” said Lammy, referring to the missed Diwali 2022 deadline set by former prime minister Boris Johnson for the FTA. “My message to Finance Minister Nirmala Sitharaman and Trade Minister Piyush Goyal is that Labour is ready to go. Let’s finally get our free trade deal done and move on,” he said, adding he will be in Delhi before the end of July if elected to government on July 4. Lammy said the Conservatives have “over-promised and under-delivered” on the UK’s relations with India. Describing India as a “priority” for the party and an economic, technological and cultural “superpower”, Lammy sought to set the tone for his future tenure in a Labour-led Cabinet – hopeful of taking charge as the country’s foreign secretary. “With Labour, the days of Boris Johnson reciting that old verse from Rudyard Kipling in Asia are over. If I recite a poem in India, it will be Tagore because with a superpower like India, the areas of cooperation and the areas for learning are limitless,” he said. From a wider foreign policy perspective, Lammy stressed a “free and open Indo-Pacific” working in partnership with India. “We stand for a rules-based order and against those who wish to redraw borders by force with a new form of imperialism, like [Russian President] Mr Putin in Europe; and those in Asia who wish to impose their will on their neighbours denying them free choices,” he said.“Europe and Asia are not two separate worlds. In this challenging environment, Britain will remain and seek to ramp up the security partnership with India from military to maritime security, from cyber to critical and emerging technologies, from defence and industrial cooperation to supply chain security,” Lammy added. With Labour far ahead of the incumbent Tories in all pre-election opinion polls, Lammy also drew parallels with the shared democratic values in both countries as he congratulated Prime Minister Narendra Modi on his re-election. “I deeply believe that India’s democratic elections, with almost a billion voters, are the most important statement, the most important validation, not only of the democratic ideal but of democratic practice in today’s world. This is something that binds us together,” Lammy said. Flagging climate change as one of the key areas of collaboration, the frontline Labour politician said the UK stood in solidarity with India through the extreme temperatures across the country. “There can be no energy transition without an Indian energy transition. India is the indispensable partner, not only to Britain but the whole developed world,” he noted. He also hailed the “extraordinary contribution” of British Indians, not only the largest diaspora community in the UK but “without whom it would be hard to even imagine modern Britain”. Guyanese-heritage Lammy concluded by highlighting his own personal India connect, saying his “great-grandmother was an Indian from Calcutta who set sail as an indentured labourer to the Caribbean”.
Source: Indian Express
In a pre-Budget meeting with Finance Minister Nirmala Sitharaman on Tuesday, exporters body FIEO has sought five year extension of the interest subsidy scheme on loans, increase in tax deduction for R&D spends, more funds for marketing and establishment of an Indian shipping line of global repute to reduce dependence on foreign shipping lines. “The interest equalisation scheme is helping exports a lot. We request the scheme which is valid till June 30, 2024 may be extended for a period of 5 years,” FIEO President Ashwini Kumar, who participated in the meeting with FM, pointed out. He also made a case for restoring the subvention (subsidy) rate from 3 per cent to 5 per cent for manufacturers in MSMEs and from 2 per cent to 3 per cent for all other exporting the 410 identified tariff lines. The argument is that this was needed as interest rates had risen consequent to increase in repo rate from 4.4 per cent to 6.5 per cent in the last 2 years. Pointing out that R&D and innovation were key to sustain exports, FIEO noted that 35 out of 38 OECD countries provided either lower tax or higher deduction on R&D expenditure. “We request that the weighted tax deduction under Section 35(2AB) may be increased to 250-300 per cent and the benefit under Section 35(2AB) may also be extended to Limited Liability Partnership (LLP), partnership firms and proprietary firms, as MSME units largely fall in these categories,” Kumar said. Shipping lines On the lines of the government initiative for facilitating container manufacturing in the country to become ‘atma nirbhar’, which has stabilised container charges in the country, FIEO requested that a similar focus should be on developing an Indian shipping line of global repute. “We remitted over $ 109 billion as transport service charge in 2022. As the country moves towards the goal of $ 1 trillion, this (transport service charge) will touch $ 200 Bn by 2030. A 25 per cent share taken by the Indian shipping line can save $ 50 billion year on year basis. This will also reduce arm twisting by foreign shipping lines, particularly of our MSMEs,” FIEO pointed out. The exporters’ body also called for increase in marketing support provided through the Market Access Initiative (MAI) scheme of the government to ₹500 crore from ₹200 crore to better showcase Indian products at global platforms. The full budget for 2024-25 is expected to be announced next month.
Source: The Hindu
The Conference Board recently forecast that India will retain its position as the fastest growing major economy this year, with an annual gross domestic product (GDP) growth rate of 6.9 per cent. The US think tank’s leading economic index (LEI) for India rose by 1.2 per cent in May this year to 158.8, more than reversing the two consecutive contractions of 0.4 per cent and 0.3 per cent in March and April. As a result, the LEI rose by 2.9 per cent over the six-month period from November 2023 to May 2024, moderately stronger than the 2.3 per cent recorded over the previous six months. Its coincident economic index (CEI) for India rose by 0.9 per cent in May 2024 to 153.5, after an increase of a 6.1 per cent in April. The index rose by 5.6 per cent over the sixmonth period from November 2023 to May 2024, a complete reversal from the 1.4-per cent contraction over the prior six-month period. The LEI provides an early indication of significant turning points in the business cycle and where the economy is heading in the near term, whereas the CEI offers an indication of the current state of the economy. “Nearly all components, save the PMI: services business activity, contributed positively to the index. Most notably, bank credit to the commercial sector accounted for a large proportion of the increase in the LEI, followed by merchandise exports and the real effective exchange rate (REER). Additionally, all components, except the REER, have increased over the past six months,” said Ian Hu, economic research associate with the think tank. “Furthermore, the six- and twelve-month changes of the LEI remained strong, suggesting that growth momentum is likely to sustain throughout 2024. For these reasons, The Conference Board forecasts India to retain its position as the fastest growing major economy in 2024, with an annual GDP growth rate of 6.9 per cent,” he added. The eight components of the LEI for India are interest rate spread, BSE: index: monthly average: SENSEX, REER: 40 currencies, M3: bank credit to commercial sector, merchandise exports, cargo handled, industrial production of capital goods, and India PMI: services business activity. The three components of the CEI for India are industrial production, total imports and vehicle sales, and passenger vehicles.
Source: Fibre2fashion
Synopsis Expanding capacity to become a top global suit maker, I strategically cater to new markets. With a focus on high-value garments, my facilities in India and Ethiopia meet the strong demand from the US, UK, and European markets. This expansion boosts domestic manufacturing and aligns with the Make in India initiative. Raymond is expanding its garmenting capacity by one-third, which will make it the third-largest suit maker in the world and help capitalise the China plus one strategy in the global market. The company, which is including women's tailoring and high-value tailored casual wear and hybrids, will extend the product range for new markets and is working on customer acquisition. "The China+1 strategy is playing to our advantage, leading to stronger business relationships with existing customers and presenting multiple opportunities for new markets and customer acquisition," said the latest annual report of Raymond. This also aligns perfectly with the government's Make in India initiative, said "As India continues to be a preferred sourcing destination, the China plus one strategy is playing its part," he said adding Raymond is expanding its garmenting capacity by a third of its current level. When the expanded capacity is fully commissioned, Raymond will become the third-largest suit maker in the world, Singhania added. This expansion not only strengthens Raymond's global presence but also boosts domestic manufacturing capabilities, said its CFO Amit Agarwal. Raymond's garmenting unit is a white-label manufacturer and an integrated supplier of high-value clothing products to leading international brands. The segment, which had a revenue of Rs 1,139 crore in FY24 mainly exports to the US, Europe and Japan. In this, export contributed 95 per cent. Its garmenting unit facilities produce range of men's wear, including suits, blazers, jackets, trousers, denim and shirts. Raymond expects a "strong demand" for higher-value garmenting categories, such as formal jackets, trousers and shirts. "High demand from the US, UK and European markets through efficient supply chain management and line capacity expansion in Indian and Ethiopian facilities is expected to drive the segment's growth," it said. Raymond has capacity to produce 7.5 million pieces of jackets, trousers & shirts in India and 3.2 million in Ethiopia, the report added.
Source: Economic Times
Luwa, a leading provider of air engineering solutions, is revolutionizing the textile industry with waste management innovations. With a legacy spanning eight decades, Luwa delivers high-quality solutions to industrial clients. From filters to dust collectors, Luwa’s commitment to excellence and sustainability shapes industry norms, promoting an environmentally conscious future. Praveen Kumar Singh, Managing Director of Luwa India, states: "At Luwa, we are dedicated to empowering textile manufacturers with state-of-the-art waste management solutions that prioritize efficiency, and environmental sustainability. Our quality standards ensure that every product we deliver meets industry needs, driving progress toward a greener future for the textile sector.” Key Solutions by Luwa include:
-Rotary Pre-Filter RPF: An efficient and space-saving solution for pre-filtration, integrated with Luwa's TexPac centralized air handling system for reliable functionality. -Rotary Drum Filter LDF: An efficient and economical solution for fine dust filtration in exhaust air with high concentrations of dust and fibers, ensuring adherence to MAC prescriptions while minimizing maintenance time and costs. -Automatic Panel Filter MCV: The MultiCell V filter is built up as a filter wall in air conditioning and filtration stations for the filtration of return air, which is contaminated with dust and fibers. The special design with bottom entry V-shaped filter cells prevents clogging of the filter with fibrous material and is unique in shopfloor savings. -Rotary Pleated Belt Filter RPB: The Rotary Pleated Belt (RPB) Filter is a patented, revolutionary design that combines high-capacity pleated media with high-efficiency suction cleaning, resulting in significant shop floor space savings. This high-efficiency, selfcleaning filter offers more capacity for its size than any other filter on the market. -Waste Separator WSA/WSB: A reliable solution for separating and compacting fibrous waste, offering continuous waste suction and dust separation, perfectly harmonized with other Luwa components for streamlined waste disposal. -Multi-Dust Collector SS: A flexible and simple dust collector group for disposal of filter waste, featuring modular design for multiple applications and easy maintenance. -Dust Separator DS with Screw Compactor SC: A fully automatic final filtering stage for dust and fibers, featuring automatic filter cleaning, high filtration efficiency, and compact design for space-saving installation.
-Fibre Separator FSB/FSC: Designed for separating and compacting fibrous waste without dust emission, offering smaller waste volume and continuous or pressure-controlled operation. -Bale Press System: Ideal for compacting textile waste into standard-sized bales, reducing disposal waste and offering semi or fully automatic operation options. Luwa’s dedication to excellence and sustainability extends beyond waste management solutions. Luwa offers a wide range of products and services, including solutions for humidity, temperature and differential pressure control, air distribution, air handling, spark detection, control engineering, and more. Luwa: Partnering for a Sustainable Textile Future Luwa goes beyond offering single products. The company provides comprehensive support, including expert consultations and tailored solutions through the headquarter in Switzerland and subsidiaries in India, China, Singapore, the US, and Turkey, as well as agents in 60+ countries. With a commitment to sustainability and innovation, Luwa is the ideal partner for textile manufacturers seeking a greener path to success.
Source: Fibre2fashion
Cotton consumption by the textile industry in the current marketing season (October 2023 to September 2024) is one of the highest this decade, said a press release from the Ministry of Textiles. The third meeting of the Committee on Cotton Production and Consumption for this season was held on Monday. Roop Rashi, the Textile Commissioner, said this year will be the second highest consumption out of last ten years with an estimated demand of 307 lakh bales, including 103 lakh bales from the MSME textile units. Cotton production this season is expected to be 325.22 lakh bales, imports 12 lakh bales, and exports 28 lakh bales. The season is likely to end with 47.38 lakh bales closing stock. Trade and industry representatives said Indian cotton prices are currently higher than those internationally and are unlikely to rise further. Textile mills are operating at 75%- 80% capacity and if this increase, cotton requirement will go up. Cotton yarn exports have revived to 95-105 million kg per month, while in April-December 2022, it went down to 50 million kg or less a month. But mill owners said they are unable to see better margins because of higher production costs.
Source: The Hindu
TEMPO.CO, Jakarta - Indonesian President Joko Widodo (Jokowi) held a limited meeting attended by several cabinet ministers to address the issue of a large number of local textile industries shutting down. "The meeting discussed complaints from (players of) the textile industry who had to shut down their business or conduct mass layoffs," Trade Minister Zulkifli Hasan remarked after attending the meeting on Tuesday, June 25, 2024. Responding to this problem, Jokowi highlighted that the government is considering re-enacting the Minister of Trade Regulation Number 8 of 2024, which is an amendment to Minister of Trade Regulation 36 of 2023 concerning Import Policies and Regulations. The re-enactment was proposed by Industry Minister Agus Gumiwang Kartasasmita, with the hopes of the regulation being able to suppress waves of layoffs experienced by the textile industry. "We will use the regulation for TPT (textile and textile products), apparel, electronics, footwear, and ceramics," Hasan remarked. He stated that relevant ministers would formulate further regulations regarding import policies and regulations to be implemented at the earliest. Earlier, Minister Kartasasmita encouraged the implementation of international trade barriers through trade remedies, such as the implementation of Safeguard Measures Import Duties (BMTP) as well as Anti-Dumping Import Duties (BMAD), to protect the domestic textile industry. To realize such efforts, collaboration is deemed necessary with the relevant ministries to implement trade remedies for the protection of the domestic textile industry. Kartasasmita said his side continues to increase the absorption of TPT products in the domestic market. However, the competitiveness of this industry is disrupted by the import of similar products, especially downstream TPT products in large quantities, both legally and illegally.
"There are also products of TPT not absorbed by export destination countries that are currently implementing trade restrictions. It resulted in an oversupply and the producing countries are dumping and diverting their market to countries without domestic market protection, including Indonesia," he remarked. Furthermore, he agreed with Finance Minister Sri Mulyani's statement regarding dumping that caused a decline in the textile industry in the country. Hence, to this end, he pressed for consistent implementation of domestic industrial protection policies.
Source: Tempo.com
Vietnamese textile and garment businesses are approaching new solutions to fully benefit from the transition to green production in line with ever tougher regulations.
As CEO of IoTeamVN, Nguyen Hoang Minh worked with 30-40 companies in construction materials, manufacturing, and industrial parks on energy management solutions. However, since early 2023, he has been working with Vietnam Textile and Garment Group (Vinatex).
“We are providing solutions to three subsidiaries of Vinatex, including its Nam Dinh spinning factory. The solutions can accurately monitor and analyse detailed data on energy usage at construction sites. The system then issues warnings when energy loss or waste occurs, helping optimise energy more effectively and economically,” Minh said. The EU requires Vietnamese exports to meet the environmental requirements of the European Green Deal, the bloc’s strategy aiming to make the continent carbon neutral by 2050. In particular, the EU requires textile products to be manufactured using environmentally friendly materials and processes, as well as eco-labels on product packaging.
Since October 2023, the EU has also implemented the carbon border adjustment mechanism, which aims at imposing carbon taxes on goods imported into the market based on greenhouse gas emissions intensity in the export country’s production.
Minh, however, admitted he has had opportunities with many factories, but their readiness for the green transition is not high, although they are aware of what they need to do.
“Just 10 per cent are doing the green transition, 50 per cent have made first actions, and about 40 per cent are considering it,” he said.
The Nam Dinh factory aims to become more price-competitive, while reducing yarn production costs in comparison with India, Bangladesh, and Pakistan, and meet green production needs of the US, the EU, Japan, and South Korea.
At a demo day held in Hanoi on June 17 jointly implemented by GIZ and the National Innovation Centre (NIC), several pilot projects on green technology for Vietnamese garments and textiles exporters were showcased, such as IoTeamVN’s energy management solution, Enedig Kft’s cloud-based labour cost calculations, Hoang Ha’s waste heat recovery, and BlockTexx’s polyester and cellulose recycling.
The Green Tech Landing Pad initiative, which the demo day was part of, has successfully connected nine new technological solutions with seven garments and textiles export companies to address common technical issues, including sludge treatment, heat recovery, fabric recycling, energy optimisation, labour management, and new sustainable materials.
NIC director Vu Quoc Huy said the initiative played a crucial role in the context of the environmental and sustainability challenges that the garment and textile industry is facing.
“Through this initiative, we equip garments and textiles enterprises with cutting-edge and eco-friendly technologies, solutions, and production models. This enhances competitiveness and drives Vietnam’s garments industry’s towards sustainability,” Huy said.
Elsewhere, Faslink, Thinh Phuc, and Kyungbang are among a few companies in the industry adopting green technologies to ensure compliance with European sustainability standards. For instance, Faslink, a pioneer in providing sustainable fashion products in the Vietnamese domestic market, is using the green solutions of Ecosoi.
The latter, which was established in 2021, is the pioneer and largest supplier of pineapple fiber, yarn, and fabric in Vietnam. Its partners come from South Korea, China, Taiwan, and Japan, and its services include providing raw materials for sustainable fashion, furniture, and providing yarn and fabric original equipment manufacturer services.
Vu Thi Lieu, Ecosoi co-founder, explained that pineapple fiber is a 100 per cent natural, environmentally friendly material. “There are many applications of pineapple yarn for woven goods, but not yet for knitting. The demand for knitted clothing is increasing due to its comfortability and versatility,” she said. “The process of recycling pineapple leaves instead of burning them helps reduce CO2 emissions and environmental pollution, contributing to reducing the greenhouse effect and climate change.”
Nonetheless, textile and garment enterprises face technical challenges in their transition to green and sustainable practices to comply with EU standards and seize growth opportunities.
Tarek Hassan, head of the Digital Transformation Centre in Vietnam for the German Development Agency (GIZ), said that there were some problems facing Vietnam’s textile industry in green transformation in compliance with European sustainability standards.
“Implementing cutting-edge technologies like automation, 3D printing, and advanced dyeing processes often requires significant upfront investments. This can be a barrier for smaller companies with limited resources,” Hassan said. “Moreover, new technologies may not always deliver immediate return on investment, making it difficult for companies to justify the initial investment, especially in a competitive market.”
He added that a lack of skilled workforce was the other challenge. Operating and maintaining sophisticated machinery and digital tools requires a skilled workforce with specialised knowledge. The current textile industry workforce might not be equipped with the necessary skills to handle advanced technologies, Hassan added. “Existing infrastructure in some textile production hubs also might not be able to support the power requirements or specific needs of advanced machinery. And upgrades to electrical grids, waste management systems, and logistics might be necessary,” he said.
Minh of IoTeamVN expanded on the problem. “The EU has many technical requirements for importers related to environment protection, green agriculture, traceability, and others. This requires comprehensive changes from material area, reservation, and exports. They cannot do this overnight, but making a roadmap takes a lot of time. Vietnamese garments and textiles factories are still just the beginning,” he said.
Source: Vir.com
KARACHI: Representatives of Pakistani exporters on Tuesday announced they would observe a “black day” next week in which all exports would be halted to protest new taxation measures in the federal budget 2024-25 The South Asian country hopes its plan to raise taxes in the proposed budget and boost state revenues will help it win approval from the IMF for a loan to stave off another economic meltdown. Pakistan has set a challenging tax revenue target of $47 billion for the next fiscal year, a 40 percent jump from the current year to strengthen the case for a new bailout deal. The big rise in the tax target is made up of a 48 percent increase in direct taxes and 35 percent hike in indirect taxes. Non-tax revenue, including petroleum levies, is seen increasing by a whopping 64 percent. Taxes have notably been slapped on previously protected export-oriented sectors such as textiles, which consistently make up over half of Pakistan’s exports, and whose receipts keep a persistently high external account deficit in check. Immediately after the budget speech, the representative body for the sector, All Pakistan Textile Mills Association, had called for a review, terming the budget “extremely regressive” and one that “threatens the collapse of the textile sector and its exports.” It warned of “dire consequences for employment and external sector stability, as well as for overall economic and political stability and security.” “On Export Black Day, not a single export consignment will be dispatched from the entire country,” Jawed Bilwani, chief coordinator of the All Exports Association of Pakistan, said at a press conference on Tuesday. Representatives of 20 export sector associations announced a symbolic strike to protest what they called the failure of the government to maintain a fixed tax regime and the approval of a proposal for 29 percent tax on exported income. As part of the strike, over 20 export industries will observe an “Export Black Day” next week and halt all exports. If the exporters’ demands were not met, they would announce further actions, Bilwani said. Under the fixed tax regime, Pakistan exporters had to pay 0.25 percent as Export Development Fund(EDF) and withholding tax of 1 percent of export turnover in addition to 0.25 to 0.35 percent bank charges which constituted 1.85 percent of the total turnover, according to exporters. With new tax measures, exporters said they would not be able to cover operational costs and may need to shut down. “This budget is detrimental to exports,” Iftikhar Ahmed Sheikh, President of the Karachi Chamber of Commerce and Industry (KCCI), said, adding that proposals in the budget would compel exporters to entirely cease operations. Addressing another press conference at the Karachi Press Club, fruit and vegetable exporters warned that placing exports under the normal tax regime would have a “very serious impact” on the economy of Pakistan. “Abolition of fixed tax regime will significantly reduce exports and closure of export units will lead to widespread unemployment,” Waheed Ahmed, the Patron-in-Chief of All Pakistan Fruit and Vegetable Exporters Association (PFVA), said. “The tax revenue targets will not be met, shortage of foreign exchange will further depreciate rupee above all.” The end of the fixed tax regime will also require exporters to maintain records of their income, expenditure and profits which they said was not possible under current circumstances due to supply chain issues. “In the case of the 29 percent tax imposed on export income in the Federal budget 2024-25, the focus of exporters will be diverted from the main goal of enhancing the export of fruits and vegetables from Pakistan since they will spend more time in maintaining records of income, expenditure and profit,” Ahmed added. In a separate press conference, Chairman of Pakistan Gem and Jewelry Traders and Exporters Association (PGJTEA) Habib-ur-Rahman said the export industry of gold jewelry was currently suffering a “severe crisis.” “Exports are suspended and the 18 percent sales tax requirement on advance gold purchase from foreign buyers under the Entrustment Scheme by the Federal Board of Revenue has dashed the hopes of exporters,” Rahman said, adding that the export of gold ornaments would be reduced from $100 million to $1-2 million if the sales tax exemption was not restored on the export of gold ornaments. In a rare move, representatives of the country’s salaried class also lodged their protest against new taxation measures. Ubaidullah Shareef, the President of Salaried Class Alliance Pakistan, a newly formed body, said the government had “further burdened” the already struggling salaried class. “The salaried class pays three times more tax than exporters and retailers,” Shareef said, highlighting that educated segments of society were leaving the country due to oppressive taxes.
Source: Arab News
Jakarta (ANTARA) - Indonesia's Trade Minister Zulkifli Hasan has announced that the drafting of negotiation points for the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU-FTA) will be completed soon.
"Only a few points remain," he said after attending a cabinet meeting with President Joko Widodo in Jakarta on Tuesday. Indonesia and the Eurasian Economic Union (EAEU) completed the first round of negotiations in Jakarta on April 3–5, 2023, following their official launch on December 5, 2022. The EAEU, boasting a population of 183 million and a substantial gross domestic product of US$2.04 trillion, represents a non-traditional trading partner for Indonesia. This economic bloc has the potential to serve as a strategic hub for Indonesian products in both Central Asia and Eastern Europe. In addition to the IEAEU-FTA, Indonesia continues trade negotiations with Bangladesh. These ongoing discussions focus on commodities beyond coal and palm oil. While Indonesia currently enjoys a surplus of US$2 billion in coal and palm oil trade with Bangladesh, the South Asian country aims to expand its textile trade.
"This negotiation is still ongoing," Hasan remarked.
Source: Antara
