Synopsis Exporters requested the establishment of a distinct division within the Commerce and Industry Ministry to address non-trade barriers, particularly those related to environment and sustainability. During their discussion with Union Minister Piyush Goyal, they also highlighted concerns about Chinese goods entering India via the ASEAN free trade agreement. Exporters on Thursday sought a separate division in the Commerce and Industry Ministry to deal with nontrade barriers such as those on environment and sustainability. At a meeting with Union Minister Piyush Goyal, they also raised the issue of Chinese goods entering India through the ASEAN free trade agreement. The EU’s Ecodesign for Sustainable Products Regulation (ESPR), Deforestation regulation, Carbon Border Adjustment Mechanism and the US’ Inflation Reduction Act to establish green technology industries are some of the nontrade barriers that will hurt India’s exports. Discussions on making InvestIndia a global trade promotion organisation of the country also took place at the meeting “The minister asked the top export sectors of electronics, gems and jewellery, engineering goods and petroleum products to increase their value addition,” said a person who participated in the meeting. Issues on container availability at hinterlands and some shipping lines bypassing India were also taken up. Mobile manufactures sought faster customs clearances to boost exports. India’s goods and services exports in FY24 were at an all-time high of $778.2 billion.
Source: Economic Times
Synopsis In a separate circular, Central Board of Indirect Taxes and Customs (CBIC) clarified that ITC is available to insurance companies in respect of motor vehicle repair expenses incurred by them in case of reimbursement mode of claim settlement. New Delhi: Suppliers giving post-sale discounts through credit notes under GST will have to ensure that the client gives an undertaking or a CA certificate stating that the ITC availed on the discount value has been reversed, the CBIC has said. Currently, there is no mechanism to track whether the Input Tax Credit (ITC) on such discounts has been reversed or not. Till the time a functionality is made available on the common portal to enable the suppliers as well as the tax officers to verify the reversal, the supplier may procure a certificate from the recipient of the supply, issued by the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that the recipient has made the required proportionate reversal of ITC at his end in respect of such credit note issued by the supplier. In cases, where the amount of tax (CGST+SGST +IGST and including compensation cess, if any) involved in the discount given by the supplier to a recipient through tax credit notes in a financial year does not exceed Rs 5 lakh, then instead of CA/CMA certificate, then the supplier will have to get an undertaking from the said recipient. Moore Singhi Executive Director Rajat Mohan said the circular has a retrospective effect, impacting all demands on this issue since 2017. Taxpayers engaged in litigation on this point can leverage this clarification for relief. "Going forward, this will significantly benefit the industry by clarifying the process for issuing credit notes. The circular mandates obtaining CA/CMA certifications or self-certifications for smaller transactions, which increases the documentation burden and necessitates updates to accounting systems. This circular demands meticulous compliance but promises long-term benefits in terms of predictable and streamlined GST operations," Mohan said. EY Tax Partner Saurabh Agarwal said these documents, with a unique ID number, serve as proof for audits and ensure consistent application of GST rules on post-sale discounts. This would help in resolving the disputes between the tax department and the businesses. In a separate circular, Central Board of Indirect Taxes and Customs (CBIC) clarified that ITC is available to insurance companies in respect of motor vehicle repair expenses incurred by them in case of reimbursement mode of claim settlement. "In cases where the garage issues two separate invoices in respect of the repair services, one to the insurance company in respect of approved claim cost and second to the customer for the amount of repair service in excess of the approved claim cost, input tax credit may be available to the insurance company on the said invoice issued to the insurance company subject to reimbursement of said amount by insurance company to the customer," it said. However, if the invoice for the full amount for repair services is issued to the insurance company while the insurance company makes reimbursement to the insured only for the approved claim cost, then, the input tax credit may be available to the insurance company only to the extent of reimbursement of the approved claim cost to the insured, and not on the full invoice value.
Source: Economic Times
Quarterly disbursement of incentives will soon start under the Production Linked Incentive (PLI) scheme for at least six of the eight sectors that currently disburse annually, including automobiles and parts, telecom and networking, electronics products, white goods, food products, textile products and drones, to speed up claim processing, sources said. “The most successful PLI scheme till now in terms of investments and production is that of smartphones which is one the six sectors for which the provision of quarterly disbursement already exists. The government, therefore, drew the conclusion that quarterly disbursement is a good incentive and should be extended to the remaining eight sectors as well,” an official tracking the matter told businessline. The Department for Promotion of Industry and Internal Trade (DPIIT), the nodal department for the PLI scheme, is also planning to hold the next stakeholder review of the PLI scheme sometime next month or just after the budget announcement for 2024-25, the official added. Apart form increasing the frequency of disbursement of incentives, the government is looking at revamping the scheme in a number of sectors such as textiles, white goods, electronics and solar PVs to make it more attractive to investors. The quarterly disbursement of funds was likely to start in one or two months as it would take some time for the line Ministries and Departments to complete all the required processes, the official said. “Most of the eight sectors, except one or two such as speciality steel and solar PV modules, where proper disbursement of incentive is yet to begin, are expected to manage the switchover soon,” they added. Investments attracted In 2021-22, the government announced the PLI scheme with an outlay of ₹1.97-lakh crore, initially for 13 sectors and later extended to 14 sectors, to incentivise local production in strategic areas and encourage exports. These include mobile manufacturing and specified electronic components; drug intermediaries & APIs; medical devices; automobiles and auto components; pharmaceuticals drugs, specialty steel, telecom & networking products; electronic/technology products; white goods (ACs and LEDs), food products, textiles (MMF segment and technical textiles), high efficiency solar PV modules, ACC battery, and drones & components. While the scheme showed excellent results for the mobile manufacturing sector, it has started to pick up in some, such as the three pharmaceutical related sectors and the IT hardware sector, yet, for some others, it still is a long way to go. Per latest estimates, the PLI scheme has attracted ₹1.5-lakh crore investments, led to production worth ₹8-9 lakh crore of which ₹3-3.5-lakh crore were exported, the official said. Total disbursement of incentives touched ₹10,000 crore, but were mostly in just a handful of sectors. Apart form increasing the frequency of disbursement of incentives, the government is looking at revamping the scheme in a number of sectors such as textiles, white goods, electronics and solar PVs to make it more attractive to investors, the official added.
Source: the Hindu
The Union government is considering setting up a fund to support exports by small businesses. A proposal for the fund may be placed in the upcoming Union budget by the finance ministry, two people aware of the development said, adding that the fund may have a corpus of around ₹5,000 crore. “The fund is likely to focus on first-time exporters with an annual turnover of less than ₹25 crore,” one of the two people mentioned above said on condition of anonymity “MSMEs and, more so, efforts to boost their export potential are expected to get a major push in the upcoming budget,” the second person said. The fund would be used to set up export facilitation centres at district level to help small businesses gauge potential markets and explore opportunities. It would also be used to develop export capacity of first-time exporters at district level by imparting necessary skills to compete in international markets in both B2B (business-tobusiness) and B2C (business-to-consumer) areas. Queries sent to the ministries of MSME and commerce remained unanswered till press time. Boosting small businesses Further, the first person cited earlier added that the fund would boost the ODOP (one district one product) scheme, which was launched in 2018 to provide a framework to develop the value chain and align support infrastructure for production of district-specific products. So far, under this initiative, the Centre has identified 1,102 products from 761 districts. Several schemes are already in place to support MSME exports. For instance, the Centre runs the Marketing Assistance and Export Promotion scheme that provides training to the workforce of these smaller businesses on marketing, packaging for export products, and also gives out awards for quality products. Currently, MSMEs contribute about 45% to the country's total exports, according to a Global Trade Research Initiative (GTRI) report. However, experts believe there is immense scope to increase this share further. A report jointly published by Niti Aayog and Foundation for Economic Development in March this year noted that exports remain an under-utilized opportunity for MSMEs, even as they are called the powerhouse of the Indian economy and contribute significantly to employment generation, exports, and overall economic growth. Citing data from the Udyam portal, the NITI Aayog report said that despite the opportunity for MSMEs to pursue exports, only 0.95% of MSMEs are engaged in it. Out of the 15.8 million MSMEs registered on Udyam, only over 150,000 units claimed to export their goods and services. In terms of MSME exports through the e-commerce route, data from GTRI showed that India significantly lags a comparable economy like China. GTRI data showed that in 2022, MSMEs in China exported goods worth over $200 billion through e-commerce platforms, while India's e-commerce export is barely $2 billion that year. Rahul Ahluwalia, co-founder of Foundation For Economic Development, noted that one of the key support that MSMEs require is simpler export processes, including a green channel for e-commerce, simpler compliances, and fewer restrictions around export payments. “Targeting particular firms will require government to decide which firm is 'worthy' which is very tricky. Broad reforms that make MSMEs lives easier in tangible ways are much better,” he said.
Why MSMEs are being eyed Presenting the interim budget for FY25 on 1 February, finance minister Nirmala Sitharaman had said that the government aims to make small businesses globally competitive. “It is an important policy priority for our government to ensure timely and adequate finances, relevant technologies and appropriate training for the micro, small and medium enterprises (MSME) to grow and also compete globally," she had said. "Orienting the regulatory environment to facilitate their growth will be an important element of this policy mix.” The focus on MSME exports has gained momentum at a time when India's merchandise exports dipped 3.11% year-on-year (y-o-y) in FY24 to $437.06 billion, according to data from the commerce ministry. In May, India's merchandise trade deficit widened to a seven-month high, largely due to a surge in imports. That month, exports grew 9.1% y-o-y to $38.13 billion, while imports grew 7.7% y-o-y to $61.91 billion. The deficit in May stood at $23.78 billion, up 5.5% y-o-y and up 24.5% from April. MSMEs contribute about 27% to India's GDP and employ more than 110 million people, making it the second largest employer in the country, after agriculture.
Source: Live Mint
Synopsis On hydraulic rock breakers, the duty ranged between 4.55 per cent and 162.5 per cent of CIF (cost, insurance, freight) value in US dollars. The duty was also imposed on these goods coming from Korea. These breakers are used in the construction and mining industry for carrying out demolition, excavation, mining and boulder breaking activities. India on Thursday imposed antidumping duties on three Chinese products including hydraulic rock breaker with an aim to protect domestic players from cheap imports. These duties were imposed following a recommendation by the commerce ministry's directorate general of trade remedies (DGTR), which has concluded in its probe that dumping of these goods are impacting domestic industry. The DGTR held investigations after complaints were filed by domestic players on the dumping of these goods. The department of revenue has notified these duties in three separate notifications. On hydraulic rock breakers, the duty ranged between 4.55 per cent and 162.5 per cent of CIF (cost, insurance, freight) value in US dollars. The duty was also imposed on these goods coming from Korea. These breakers are used in the construction and mining industry for carrying out demolition, excavation, mining and boulder breaking activities. "The anti-dumping duty imposed (on these breakers) ...shall be effective for a period of five years (unless revoked, superseded or amended earlier)," according to one of the notifications. Similarly, USD 741 per lakh prices was imposed on imports of 'Easy open ends of tin plate, including electrolytic tin plate, measuring 401 diameter (99MM) and 300 diameter (73MM) in dimension' from China for five years. These plates are used in packaging of consumable and other items such as fresh and preserved food beverages. The government has also imposed a provisional anti-dumping duty of USD 614 per tonne on imports of 'Telescopic Channel Drawer Slider' imported from China for six months. Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in below-cost imports. As a countermeasure, they impose duties within the multilateral regime of the WTO (World Trade Organisation). Anti-dumping measures are taken to ensure fair trade and provide a level playing field to the domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.
Source: Economic Times
Synopsis A multimodal route that includes a railway, roadway network and seaports, the INSTC spans 7,200km (4,500 miles) from St. Petersburg to the port of Mumbai in India. The corridor is part of Russia’s push to find new transport routes in light of Western sanctions, which have forced it to shift trade flows from Europe to Asia and the Middle East. For the first time, Russia has sent two trains laden with coal to India via the International North-South Transport Corridor (INSTC), which connects Russia to India via Iran, according to Russia’s national railway company. A multimodal route that includes a railway, roadway network and seaports, the INSTC spans 7,200km (4,500 miles) from St. Petersburg to the port of Mumbai in India. The corridor is part of Russia’s push to find new transport routes in light of Western sanctions, which have forced it to shift trade flows from Europe to Asia and the Middle East, RT has reported. “For the first time, two trains with Kuzbass coal headed to India along the International NorthSouth Transport Corridor. The trains set off from the Kemerovo region. They followed along the eastern branch of the INSTC through Kazakhstan and Turkmenistan to the Iranian port of Bandar Abbas,” Russian Railways said on Monday in its Telegram channel, RT reported.
How INSTC can revolutionise India's trade The development of the INSTC, which connects Russia to India through Iran's Chabahar port, means a lot for India's trade. Now that Russia faces restrictions on sea trade due to the Ukraine war, the corridor assumes even more economic and strategic importance, especially when India sees it as an alternative to China's ambitious Belt and Road Initiative. Last month, India took over management of Iran's Chabahar Port for an initial 10-year period. The deal is a boost for the INSTC as the port will serve as a key node in the INSTC. It will change the face of regional connectivity, trade with landlocked countries of Central Asia and Afghanistan, and provide an alternative route that connects the region with Russia and then Europe. INSTC will allow Indian traders to reach Central Asia with greater ease and more cost-effectively. Trade experts explain that this will mean efficient access to Iran, Russia, Azerbaijan, and the Baltic and Nordic countries — and not just the 11 countries in Central Asia. They also point out that the INSTC is being seen as an alternative to the Suez Canal trade route. About 12% of global trade, around one million barrels of oil and roughly 8% of liquefied natural gas pass through the canal each day, says a BBC report. Yet it remains vulnerable. In 2021, the experts recall, a ship ran aground and blocked the Suez Canal for six days. Lloyd's List estimated that $9.6 billion of trade was held up each day. The world was recently again reminded of the importance of having alternative trade routes when the IsraelHamas conflict and the Houthi attacks on ships coming or going to the canal started disrupting trade. Ajay Srivastava, Cofounder of Global Trade Research Initiative (GTRI), had told ET last month, “Indian cargo from ports like Kandla, JNPT, Mumbai, Mormugao, Cochin and Mangalore can use Chabahar port in Iran as a strategic gateway to Central Asia, including Turkmenistan, Uzbekistan, and Kazakhstan, and further to Northern Europe via Iran and Russia. The INSTC significantly cuts transit times to around 25 days from the usual 45 days via the Suez Canal route and reduces freight costs by 30%.” Energy, pharmaceuticals, information technology, health, agriculture, textiles, and gems and jewellery can benefit greatly once India starts leveraging Chabahar port for the INSTC route, Nisha Taneja, Professor, Indian Council for Research on International Economic Relations (ICRIER). told ET last month. The energy angle India has been ramping up purchases of both coking or metallurgical coal used in steel production as well as thermal coal used for power generation from Russia as the Urkatien war has forced Russia divert coal supply away from Europe. Though India is trying to increase its renewable energy capacity, its dependence on coal for pwoer generation is only expected to grow. Imports of metallurgical coal from Russia have spurted around three-fold in the last three years to around 15.1 million tonnes in 2023-24 mainly due to lower prices while the same from Australia have declined, according to a research firm. Russia's share in India's metallurgical coal imports of 73.2 million tonnes (MT) has risen to around 21 per cent from around 8 per cent in 2021-22, as per a recent report by research firm Big Mint. Iron ore and metallurgical coal or met coal are essential ingredients in steel production. India is dependent on imports to meet its domestic demand for met coal. According to BigMint analysts, "cost-benefit" is the main reason for the rise in imports of metallurgical coal from Russia. Imports from Russia are costing less to domestic steel players because of low prices, a BigMint analyst said. However, in the long run, imports from Russia are projected to whittle down as the country is expected to impose an export tax on met coal and an increase in logistics cost, another analyst said. The INSTC can also help India source energy from the Central Asian countries. Citing India’s huge energy imports from Central Asian countries via trade choke points of the Red Sea and Strait of Hormuz, Rajan Sudesh Ratna, Deputy. Head and Senior Economic Affairs Officer at the United Nations Economic and Social Commission for Asia and the Pacific (UNSCAP), told ET last month, “One key economic sense of INSTC is around energy connectivity. All corridor countries, especially India, are working towards energy security. Central Asia can be a good source for this requirement due to two reasons — cheaper price and good connectivity.” “If you can cheaply import via INSTC, you can save the country precious foreign exchange and anything that’s produced after that would also be more cost-effective," Ratna told ET.
Source: Economic Times
Synopsis There must be review and monitoring, including through robust IT tools and databases, when it comes to FDI from countries of concern, highly placed sources told ET. Once a system is in place, disposal of cases should take place through a time-bound mechanism, sources pointed out. India's security establishment is advocating a cautious approach to any unhindered and blanket approval to the FDI proposals from China given the history of corporate behaviour of Chinese companies in the country. ET has learnt that it has been suggested that before lifting the restrictions for Chinese FDI that were put in place during Covid, a system of risk assessment must be put in place. There must be review and monitoring, including through robust IT tools and databases, when it comes to FDI from countries of concern, highly placed sources told ET. Once a system is in place, disposal of cases should take place through a time-bound mechanism, sources pointed out. National security should not be overlooked while advocating unhindered FDI from countries of concern, sources explained. Desirable investments that can contribute to access of new technologies and domestic value addition should be encouraged and approved; sources suggested. The 2020 restrictions on Chinese FDI and subsequent probe by agencies is not holding back Chinese investments in certain sectors. Sources also pointed out that pre-entry mechanisms are not the only part of improving the investment climate in the country. Facilitating the FDI also requires supporting investors in setting up their business activities after they bring in their money into the country.
Source: Economic Times
Technical textile courses in polytechnics and ITIs proposed
The textiles department has proposed offering technical textile courses in polytechnics and industrial training institutes. The courses are being introduced to fulfil the need for skilled workers to manufacture high quality textiles. The curriculum for the same would be developed with support from centres of excellence in textile technology. The handlooms department has also proposed to get geographical indication tag for five traditional varieties of handloom products, namely, the silk saris from Chinnalapatti; Koorainadu saris; Nagarcoil vaeti; Uuraiyur saris; and Gudiyatham lungis. The department has allocated ₹15 lakh. The free dhoti and sari for Pongal were distributed by December last year. Usually, it is given after the festival,” he said. “We have planned to give four sets of uniform to school students. For the first time in this year, we have distributed two sets of school uniforms before the schools reopened,” he said.
A mini handloom park on the lines of that Kancheepuram will be established in Dindigul district and Chinalampatti, the minister said.
Source: Live Mint
Synopsis Maharashtra’s economy is projected to grow by 7.6% in 2023-24, mirroring India's expected growth rate. The state’s agriculture sector, impacted by adverse conditions, is set to increase by 1.9%, while the industry and services sectors are forecasted to expand by 7.6% and 8.8%, respectively. Maharashtra's economy, the top contributor to the national nominal GDP, is expected to expand by 7.6 per cent in 2023-24, similar to the country's projected growth of 7.6 per cent, according to the state's latest Economic Survey. The agriculture and allied activities sector, which was hit by "scarcity situation", in the state is expected to grow by 1.9 per cent and the Industry sector by 7.6 per cent, while the services sector is likely to register an expansion of 8.8 per cent in the last fiscal, it said. The Economic Survey 2023-24 was tabled by Deputy Chief Minister Ajit Pawar, who also handles the finance portfolio, in the Maharashtra legislature whose monsoon session began on Thursday. The state's economy is expected to grow by 7.6 per cent, compared to 6.8 per cent in the previous year. As per the key document, the state's gross state domestic product (GSDP) at current prices for 2023-24 has been projected at Rs 40,44,251 crore and real at Rs 24,10,898 crore. GSDP indicates the total economic output generated within a state's boundaries over a specified period, typically a fiscal year. The average share of the state in the all-India nominal GDP is highest at 13.9 per cent. The per capita state income for 2022-23 was Rs 2,52,389 as against Rs 2,19,573 in the previous fiscal, it said. "The percentage of fiscal deficit to GSDP is 2.8 per cent, revenue deficit to GSDP is 0.5 per cent and debt stock to GSDP is 17.6 per cent," the report said. The total anticipated expenditure for annual schemes in the last financial year is Rs 2,31,651 crore of which Rs 20,188 crore is towards district annual schemes, it said. The revenue receipts are expected to be Rs 4,86,116 crore for 2023-24 as against Rs 4,05,678 crore in the previous fiscal. As per the Survey, Maharashtra's revenue expenditure in the given period is Rs 5,05,647 crore compared to Rs 4,07,614 crore in the year before. The annual credit plan size for the state's priority sector for 2023-24 is Rs 6.51 lakh crore in which the share of the agriculture and allied activities sector is 25.9 per cent and that of micro, small, medium enterprises and khadi and village industries sector is 55.6 per cent, it said. The state received 86.4 per cent of the normal rainfall during the monsoon in 2023. Across Maharashtra, 19 talukas received excess rainfall, 190 received normal rainfall and 146 received deficient rainfall, the Economic Survey said. The kharif season of 2023-24 saw sowing over 155.64 lakh hectares. For this season, the production of cereals, pulses, oilseeds and sugarcane is expected to decrease by 23 per cent, 10 per cent, 2 per cent, and 17 per cent, respectively. Cotton production is expected to rise by 3 per cent over 2022-23. During the rabi season of 2023-24, sowing was completed on 58.60 lakh hectares. The production of cereals and pulses is expected to go down by 5 per cent and 4 per cent, respectively, while production of oil seeds is expected to increase by 13 per cent over the previous year, it said. The area under horticulture is expected to be 22.40 lakh hectares and production is expected to be 327.80 lakh metric tonnes. The agriculture and allied activities sector, a key driver of the state's economy, contributes about 12 per cent of the GSDP. The state ranks second in India in organic farm production (27 per cent) after Madhya Pradesh. Maharashtra's irrigation potential created up to June 2022 by major, medium and minor projects was 55.60 lakh ha. During 2022-23, the actual irrigated area stood at 42.33 lakh ha, the Survey said. "Scarcity situation during the kharif season 2023 affected 40 talukas in 15 districts," it said. In all, 22.66 lakh ha of agricultural and fruit crops were affected due to drought and compensation of Rs 2,442.23 crore was sanctioned, it said. Between November 2023 and January 2024, compensation of Rs 2,277.9 crore was sanctioned to 23.96 lakh farmers over 12.89 lakh ha of affected area. According to the Economic Survey report, Maharashtra has remained topped in terms of FDI inflows in the country. During 2022-23, exports from the state contributed to 16 per cent of the total exports from the country, it said.
Source: Economic Times
Surat, Gujarat : Surat, often known as the “Silk City” and widely regarded as Gujarat’s economic powerhouse, is currently experiencing a severe economic crisis. Due to overproduction and declining demand for polyester fabric in India and overseas, textile entrepreneurs in the city are being forced to adopt drastic production cuts ranging from 50 to 80%. Surat’s once-thriving textile industry is waiting expectantly for the Gujarat government to announce a new textile policy, which has been postponed for more than six months.
Gujarat’s new textile strategy is currently being developed following lengthy arguments and several presentations to various textile associations, most notably the Southern Gujarat Chamber of Commerce and corporate (SGCCI). Harsh Sanghvi, Minister of State for Home and Industry, promised guests at a recent swearing-in ceremony of the new SGCCI office bearers that the policy is in its final stages and will be announced soon.
Surat’s textile industry is in serious problems at all levels, from grey cloth weaving to textile processing, trading, and exporting. The majority of local producers are small and medium businesses (SMEs) and micro, small, and medium enterprises (MSMEs), which are especially exposed to market fluctuations and policy delays.
Experts warn that any delay in implementing the new textile police worsens the sector’s situation. Both short-term and long-term impacts can devastate the industry and ruin years of progress. Surat’s textile industry currently stands in stark contrast to its former glory, which rivaled Maharashtra’s textile sector.
When Narendra Modi became Gujarat’s Chief Minister in 2001, he implemented popular programs such as the “Textile Policy” and “Vibrant Gujarat,” which benefited the state’s industrial sector significantly. These developments improved Gujarat’s international prominence, which boosted textile sector employment and investment. However, after Modi became the Prime Minister in 2014, attention to textile policy has waned, which explains the current decline.
One of the most major challenges is Gujarat’s high electricity costs in comparison to neighboring Maharashtra, where textile and other entities receive huge subsidies. Higher production costs in Gujarat as a result of this imbalance have prompted many local businesses and new investors to relocate to Maharashtra, specifically Dadra-Nagar Haveli, Daman, and Navapur.
Gujarat’s textile business, particularly in Surat, is heavily dependent on migrant workers. Based on their experiences, these workers contribute to how Gujarat is perceived in their home states, which can influence voting trends and political situations. Maintaining a positive image and a stable staff requires ensuring their well-being.
“The state government must address the high production costs in Gujarat and provide a level playing field for the textile industry. The first step should be taken to prevent more industry migration to neighboring states. As seen in Maharashtra, a devoted textile minister might provide targeted advocacy for the sector’s demands” said Ashish Gujarati, former president of SGCCI.
Source: the blunt times
After a fall in textile and clothing exports last year, China saw a modest rise of 1.4% in the first five months of the year. The country exported goods worth 106.7 billion euros, according to the China Textile Industry Sub-Council (CCPIT-Tex). Textile exports totalled 52.6 billion euros, up 2.6% on the same period the previous year. In the clothing sector, exports remained stable at +0.2%, with 54.1 billion euros worth of products shipped. May could mark a breakthrough. While exports rose by just 0.8% over the January-April period, exports of textiles and clothing rose by 4.7% in May. This acceleration particularly affected textiles (+8.1%) and, to a lesser extent, clothing (+1.6%). "Since the second quarter, the situation for Chinese textile and clothing exports has improved compared with the first quarter, but the pressure from companies' foreign trade remains strong and the order situation has not improved significantly," says CCPIT-tex. "This rebound in exports may be due to a shortage. It remains to be seen whether it will form part of a continuing upward trend." The Chinese Textile Authority points out that, since the start of the year, the situation on the international retail market has remained stable overall. But behind this stability, markets in most developed countries have only been able to maintain weak growth, leaving some doubt as to whether consumption will pick up again soon. Last year, China exported the equivalent of 269.4 billion euros worth of textiles and clothing. After exchange rate effects, these were falls of 8.1% and 2.9% respectively, caused mainly by inflation, which is holding back Western consumption, but also by the effects of the zero-Covid policy, which was finally lifted at the start of the year.
Source: US fashion network
In a significant diplomatic event, Prime Minister Narendra Modi welcomed Prime Minister Sheikh Hasina of Bangladesh to India during her state visit. This marks a special occasion as Sheikh Hasina is the first state guest in the third term of the Modi government, underscoring the importance of the India-Bangladesh relationship.Prime Minister Modi began by highlighting the strategic importance of Bangladesh in India’s foreign policy framework. “Bangladesh is situated at the convergence of our ‘Neighbourhood First’ Policy, Act East Policy, Vision SAGAR, and Indo-Pacific Vision,” he said.
Achievements in the Past Year
Modi outlined several key achievements in bilateral cooperation over the past year:
· The launch of the 6th India-Bangladesh cross-border rail link between Akhaura and Agartala.
· Initiating cargo facilities for India’s North-Eastern states via the Khulna-Mongla Port.
· Connecting Mongla Port by rail for the first time.
· Both units of the 1320 MW Maitree Thermal Power Plant starting electricity generation.
· Commencement of trade in Indian Rupees (INR) between the two countries.
· Successful completion of the world’s longest river cruise on the River Ganga.
· Completion of the first cross-border friendship pipeline.
· Export of electricity from Nepal to Bangladesh via the Indian grid, marking a milestone in sub-regional energy cooperation.
“The implementation of such big initiatives, in multiple areas, within just one year reflects the speed and scale of our relations,” Modi stated.
Future Vision for Cooperation
Looking ahead, Prime Minister Modi emphasized a forward-looking vision for cooperation, focusing on new areas such as Green Partnership, Digital Partnership, Blue Economy, and Space. He announced the India-Bangladesh “Maitri Satellite” project, aimed at elevating bilateral cooperation to new heights. Connectivity, Commerce, and Collaboration remain the central themes of this vision. Modi highlighted the restoration of pre-1965 connectivity and plans to enhance digital and energy connectivity to further boost both economies. To strengthen economic ties, negotiations on a Comprehensive Economic Partnership Agreement (CEPA) will commence, and India will support the construction of an Inland Container Depot in Sirajganj, Bangladesh.
Water Resources and Defense Cooperation
Recognizing the importance of water resources, Modi mentioned that 54 rivers connect India and Bangladesh. The two nations will continue their cooperation on flood management, early warning systems, and drinking water projects. Technical discussions for renewing the 1996 Ganga Water Treaty and the conservation of the Teesta River will soon begin. On defense cooperation, Modi stated that discussions covered defense production and the modernization of armed forces. Both countries will enhance collaboration on counter-terrorism, counter-radicalism, and peaceful border management. He welcomed Bangladesh’s decision to join the Indo-Pacific Oceans Initiative, indicating a shared perspective on the Indian Ocean region.
Cultural and People-to-People Exchanges
Prime Minister Modi emphasized the strong cultural ties and vibrant people-to-people exchanges that form the foundation of the bilateral relationship. Plans to increase scholarships, training, and capacity-building initiatives were discussed. India will launch an e-medical visa facility for Bangladeshi citizens seeking medical treatment in India and will open a new Assistant High Commission in Rangpur to serve the people of North-Western Bangladesh.
Looking Ahead
Concluding his address, Modi reaffirmed India’s commitment to its relationship with Bangladesh. He praised Sheikh Hasina’s leadership in achieving the vision of “Sonar Bangla” and expressed confidence in the shared vision of ‘Viksit Bharat 2047’ and ‘Smart Bangladesh 2041’. “Bangladesh is India’s biggest development partner, and we give utmost priority to our relations with Bangladesh,” Modi reiterated. He also extended his best wishes to both teams for the day’s Cricket World Cup match, adding a personal touch to the official proceedings. This visit marks a pivotal moment in the India-Bangladesh relationship, with both nations poised to achieve greater heights through mutual cooperation and shared vision.
Source: Textile magazine
The Indonesian government is drafting regulations to impose anti-dumping duties and safeguard measures for the textile industry and other sectors as a measure to protect against unfair competition from cheap imported products. The Indonesian government is currently formulating regulations for imposing Anti-Dumping Duties and Safeguard Measures (ADD and SM) for various industries, including textiles, footwear, electronics, ceramics, and bags. This effort involves coordination among the Ministry of Finance, the Ministry of Industry, and the Ministry of Trade. “The Ministry of Finance is waiting for letters from the Minister of Trade and the Minister of Industry to promptly respond and take the necessary steps as stipulated by law, such as determining import duties,” Finance Minister Sri Mulyani Indrawati told a media conference on Thursday, June 27, 2024. She emphasized that the ADD and SM regulations would provide fair and just protection for domestic industries, especially in facing unfair competition from imported goods flooding the local market at significantly lower prices. “These regulations are expected to protect domestic industries from unfair competition, especially with the influx of goods from countries with significant surpluses,” she said. This measure is in response to the increasing number of layoffs and closures in the domestic textile industry due to pressure from imported textile products, particularly from China. These imports flood the local market at much lower prices, squeezing the utilization of domestic factories. A tangible example is PT Sri Rejeki Isman (Sritex), a domestic textile giant, which admitted to having laid off 3,000 employees this year with more to follow. President Joko Widodo immediately responded by holding a limited meeting last Tuesday, gathering several ministers to address the issues in the textile industry. The government is also considering reinstating the Ministry of Trade Regulation No. 8/2024, which is an amendment to Trade Minister Regulation No. 36/2023 on Import Policy and Regulation. Minister of Industry Agus Gumiwang Kartasasmita proposed reinstating this regulation to help curb the wave of layoffs in the textile industry. With these measures, the government hopes to create a fairer competitive environment for domestic industries while ensuring the sustainability and growth of strategic sectors.
Source: Indonesia Business Post
Swedish Embassy and Business Sweden along with key industry players are set to launch the Sustainable Textiles Platform aiming to help Pakistan in the textile sector with Swedish technology and innovation.“Pakistan’s textile industry, a crucial part of its economy, faces mounting pressure to adopt eco-friendly practices,” said a Swedish embassy press release on Wednesday. The embassy noted, “Pakistan’s textile, garments, and apparel manufacturing sector is vital to its economy, contributing nearly 10% of the nation’s GDP. However, this key industry is under pressure to adopt sustainable practices as global markets demand eco-friendly products. To stay competitive, the textile sector must innovate.” It said that the Pakistani textile industry was making strides towards environmental sustainability by focusing on renewable energy, advanced water management, and recycling. “These efforts are crucial for the industry’s global competitiveness and long-term success. Despite progress, there is still no common standard for sustainability practices across the sector.” Swedish technology and innovation are set to play a transformative role in this area. By incorporating Swedish advancements, Pakistani manufacturers can increase efficiency, reduce their environmental impact, and secure long-term economic benefits.” It further said that this initiative will explore how Swedish technology can enhance sustainability and productivity in Pakistan’s textile sector, with a focus on circular economy, water treatment, and renewable energy. “The platform will also highlight the involvement of major Swedish textile buyers like IKEA and H&M, and technology providers like Atlas Copco, through panel discussions. Key areas of focus includes circularity by adopting circular economy principles to reduce waste and continually reuse resources, water treatment, renewable energy.” The Sustainable Textile Platform event aims to bring together sourcing companies, producers, public sector decision-makers, and academia to drive positive change in the textile sector. By leveraging Swedish technology and innovation, the Pakistani textile industry can enhance sustainability, improve productivity, and boost product quality, making it more competitive globally. Director General for Global Affairs in Swedish Ministry of Foreign Affairs, Dag Juhlin-Dannfelt said, “The people of Pakistan are among those who understand the impact of climate change the most. The Sustainable Textile Platform not only aims to mitigate the climate crisis but hopefully it will inspire more companies to follow suit. The Swedish business community is eager to provide expertise while collaborating with Pakistani partners who understand the possibilities for improvements on the ground.” Ambassador of Sweden in Pakistan Henrik Persson said, “The partnership between Swedish and Pakistani companies is already very strong in the textile sector. The sustainable textiles concept holds great potential for the Pakistani textile industry to maintain and further strengthen its competitiveness in the global market. Swedish partners are ready to support this endeavor.”
Source: Pakistan today
LONDON - Textile Exchange has expanded its Materials Impact Explorer (MIE) tool which aims to help brands and retailers understand the impact risks associated with their sourcing of raw materials. The tool, launched at the industry body's annual conference in London last October, now has 'forests' and 'air pollution' added as new risk categories, as well as manmade cellulosic fibres (MMCF) as a new material.
Source: Eco textile
