The quality control orders (QCOs) on upstream raw material products of the non-cotton textile industry were implemented during the last couple of years. These QCOs were issued to ensure the import of quality raw materials in accordance with the standards set by the Bureau of Indian Standards (BIS).
However, the downstream industry claims that the QCOs have proven disastrous for the Indian textile industry, merely promoting monopolistic activities by a few producers of polyester and viscose fibres, as well as their raw materials and yarn. The industry has urged the Union Finance Minister to reconsider the QCOs to ensure the supply of raw materials at globally competitive prices and quality. Recently, the Supreme Court stayed the Gujarat High Court order reinstating anti-dumping duties on Purified Terephthalic Acid (PTA) imported from South Korea (Republic of Korea) and Thailand. Ashish Gujarati, president of the Surat-based Pandesara Weavers Cooperative Society Limited, stated in a letter sent to Finance Minister Nirmala Sitharaman, “The government showed its sensitive approach towards downstream industry by challenging Gujarat HC order in Supreme Court. The court order will directly benefit fibre and yarn manufacturers and indirectly benefit the fabric and garment industry. It shows that the government is very much concerned for the downstream industry and fabric industry. We are sure that the government will take a positive approach if sunset review begins.”
Bharat Gandhi, chairman, Federation of Indian Art Silk Weaving Industry (FIASWI), stated in a separate letter to the finance minister that QCOs cannot ensure quality. These orders have proven disastrous for the industry, granting monopolistic privileges to a few upstream producers. The non-cotton fibre, yarn, and fabric industry is struggling to remain competitive in the global market as they are now dependent on only local suppliers. These suppliers are increasing the prices of raw materials because global supply has been restricted through the QCOs. The industry asserts that QCOs cannot ensure a consistent supply of raw materials, leaving the downstream industry uncompetitive in the global textiles and garment market.
Source: Fibre2fashion
The medical textile industry is set to reach US $ 48.49 billion by 2032, growing at an annual rate of 4.03 per cent from 2024. Due to better healthcare infrastructure, especially in developing countries investments in hospitals and clinics are boosting the need for high-quality medical textiles, the demand for medical textiles, including surgical gowns, drapes, and wound care items, is increasing New technologies are transforming the medical textile market with smart textiles that offer improved functionality. Innovations focus on adding antibacterial properties and monitoring capabilities to medical fabrics. In 2023, Medtronic introduced antimicrobial wound care products to reduce infection risks and promote faster healing, addressing concerns about wound infections. The World Health Organization reports a rise in global spending on infection control measures, including medical textiles. This shows a global commitment to preventing infections in healthcare settings. Modern healthcare facilities are using advanced medical textiles with antibacterial properties to reduce hospital- acquired infections. Many hospitals now require antimicrobial surgical gowns and drapes to minimize surgical site infections. In 2023, the Asia-Pacific region led the medical textile market with a 38.6 per cent revenue share. Expansion of healthcare infrastructure in China and India is driving demand. The region’s large, aging population further increases the need for specialized medical products. Supportive government policies and the rise of medical tourism in countries like Malaysia and Thailand also contribute to market growth, fuelling the robust expansion of the medical textile industry in Asia-Pacific.
Source: Apparel Resources
With the crisis in Bangladesh intensifying, the textile sector, which contributes a lion’s share of its export, is likely to be a victim of the turmoil, with international buyers shifting their focus to alternative markets like India. India’s gain will be an additional business of $300-400 million per month if 10-11 per cent of the neighbouring country’s export is diverted to Indian hubs like Tiruppur, say industry experts. “We expect orders may start coming to Tiruppur, and this financial year, they are expected to be at least 10 per cent more than last year’s,” said K M Subramanian, president of the Tiruppur Exporters’ Association. Bangladesh’s monthly apparel export is $3.5-3.8 billion and has a high double-digit share in the European Union and the United Kingdom and a 10 per cent market share in the United States. India is exporting in the range $1.3-1.5 billion per month. “This is unfortunate and if the current disruption lasts long, it will affect buyer sentiment. Initially, buyers will likely shift some orders to India and other countries. We have the capacity to handle an additional $300-400 million in orders immediately,” said Prabhu Damodaran, secretary to the Indian Texpreneurs Federation, an industry body. The crisis has come at a time when Bangladesh was expected to cross $50 billion in annual export in 2024, compared to around $47 billion in 2023. In addition to this, manufacturing units owned by Indians in Bangladesh are also likely to shift their base to India. According to trade-policy analyst S Chandrasekaran, around 25 per cent of the units in Bangladesh are owned by Indians. They include companies like Shahi Exports, House of Pearl Fashions, Jay Jay Mills, TCNS, Gokaldas Images, and Ambattur Clothing. “The movement of consignments is stuck, and there is a breakdown in the supply chain for the upcoming Christmas season. India has an advantage here because orders will be diverted,” Chandrasekaran added. “The sudden drop in global volumes may be
compensated by a rise in Indian exports.”
Source: Business Standard
Principal Secretary (Handlooms and Textiles) K. Sunitha has asked the Collectors to set up garmenting units, and encourage textile investments in border districts, among others, to make the handloom and textiles sector the second largest employment provider after agriculture. Speaking to the Collectors on August 5 (Monday), she said the officials should focus on increasing the intake of students in the textile engineering institutes in Guntur and Madakasira. People with handloom and handicraft skills should be identified in skill census and new societies should be formed, she said, adding that elections to weaver cooperative societies would start on September 21 and end on December 6. She instructed the Collectors to conduct exhibitions and encourage employees to wear handloom clothes every Monday. They could take financial assistance from NABARD for initiatives such as exhibitions, melas, ‘Rural Haat’, for GI registration, Livelihood Enterprise Development Programme (LEDP), Micro Enterprise Development Programme (MEDP), and identification of new handloom clusters under the Cluster Development Programme. Later, she said post-harvest cotton contamination should be prevented by ditching plastic for storage of cotton. She suggested implementation of the Better Cotton Initiative (BCI) programme in Kurnool, Guntur and Palnadu. Hyacinth could be used for weaving baskets, instead of being killed with pesticide, which would result in contamination of water. Those interested in One District One Product awards should conduct buyer-seller meets and provide space for stalls to sell handloom and handicrafts at places that witnessed large footfall, she said.
Source: The Hindu
A 14-member delegation from Burkina Faso visited Coimbatore, Tiruppur, and Karur recently looking for better collaboration with the textile and garment industry. The team, led by GIZ, was on a four-day visit organised by Gherzi Consultants along with 2M Invest Consult. Apart from visiting the factories, the members also went to the Southern India Textile Research Association and the Sardar Vallabhbhai Patel Institute of Textile Management. Burkina Faso produces about two lakh bales of cotton annually, covering all varieties except the extra-long staple. And, almost 100% of the cotton produced is certified by international sustainable cotton certification programmes. It consumes locally only 2% of the cotton produced and the rest are exported. Of the exports, 10% is to India, said sources in Gherzi. Some of the garment manufacturers and spinning mills in Tiruppur and Karur import cotton from Burkina Faso. The aim of the visit was to give the delegation an exposure to the textile and garment clusters. The units in Burkina Faso are primarily cottage industries and they are looking at value addition of the cotton produced in that country. The delegation wanted to strengthen collaboration with the industry here to attract investments and promote business, the sources added. The entrepreneurs here wanted details on the safety systems in place, skill development facilities for workers, and the benefits extended by the government. A press release said GIZ implements projects on nutrition, safety and soil protection. It has also been active for many years in supporting the cotton sector in Burkina Faso. Gherzi and 2M Consulting have been providing technical assistance to Burkina Faso’s cotton sector under various GIZ projects that include the establishment of a textile incubator.
Source: The Hindu
New Delhi’s trade and investment relationship with Dhaka may have entered a phase of uncertainty after Bangladesh Prime Minister Sheikh Hasina resigned following weeks of violent demonstrations and their Army chief declared that an interim government will now run the country. Bangladesh is India’s 25th largest trading partner, with the size of the bilateral trade at $12.9 billion. The trade is dominated by exports, with Bangladesh being India’s eighth largest export partner. In FY24, India's exports to Bangladesh contracted 9.5 per cent to $11 billion. Over the last two years, outbound shipments to Dhaka have been declining. For instance, during FY22, Bangladesh was India’s fourth largest export market. However, outbound shipments were affected by factors such as dollar shortage, high inflation and other factors like India’s export restrictions on essential items such as wheat and some categories of rice. Bangladesh is also a key destination for Indian auto exports, alongside African and Latin American countries.
The political unrest in the neighbouring country could also pose risk for investors for their existing projects and may lead to an influx of illegal migrants into India.
“The political unrest in Bangladesh will create uncertainty for exporters. In fact, there will be greater risk for investors,” said Arpita Mukherjee, professor, Indian Council for Research on International Economic Relations (ICRIER). According to Delhi-based think tank Global Trade Research Initiative (GTRI), India's exports, such as onions, other agricultural products, and electricity, are crucial for the people and economy of Bangladesh and may not be significantly affected by the unrest. “However, Bangladesh's economic challenges have negatively impacted bilateral trade in recent years… Bangladesh has been facing a severe dollar shortage, which has limited its ability to import goods, including those from India. The rising inflation in the country has also reduced domestic demand, leading to lower consumption of both local and imported products,” GTRI said.
India’s imports from Bangladesh contracted 8.7 per cent to $1.8 billion in 2023-24. Top inbound shipments include iron and steel products, textiles and leather goods, among others. Biswajit Dhar, distinguished professor at the Council for Social Development, said that Bangladesh is very important and a large market for India. “Political uncertainty in Bangladesh will certainly hit us on the trade front. If the political uncertainty spills over to economic uncertainty, then Bangladesh’s economy will get affected. That may result in illegal migration into India,” Dhar added.
Source: Business Standard
The Rajasthan government is planning to bring an investor-friendly industrial policy soon, according to an industry department official. “The process of formulating a new industrial policy by the state government is underway. This will provide new employment opportunities to the youth,” the official said. He said the new Industrial Policy-2024 would be based on ease of business and sustainability. The new policy will aim to set up theme-based industrial parks and hassle-free goods transportation. The industry contributes around 24 per cent of the state GDP. The policy will also promote the use of green technology and research and development. Besides, a Rajasthan Petro Zone (RPZ) has been planned in Balotra along with a defence manufacturing hub. A search for the area where it is going to be established has already been started, the official added. To attract global companies to the state, an ‘Amrit Global Technology and Application Centre’ in Jaipur would be set up at a cost of Rs 200 crore. This would be a single-window set up to attract investment from global companies. The official said that as part of the policy, infrastructure facilities would be improved at a textile park in Bhilwara, a ceramic park in Bikaner, an industrial and logistical hub near Bandikui–Dausa, a solar panel manufacturing park in Kankani/Rohat–Pali, a biomass pellet and chemical manufacturing park in Banswara, a tiles manufacturing park in Kishangarh–Ajmer and a handicrafts Park in Jodhpur. This, he said, would give a boost to new investments in these parks once the facilities become world class. Besides, a sum of over Rs 175 crore is planned to be incurred on improving infrastructure facilities in Rajasthan State Industrial & Development Corporation (RIICO) industrial areas.
Source: Business Standard
Synopsis Approximately six months ago, a parliamentary standing committee led by Jayant Sinha also highlighted the need to reduce GST on health and term insurance. The current tax environment imposes significant levies not only on insurance but also on other essential services such as telecom, which also attracts an 18 per cent GST. A recent letter from Nitin Gadkari to Nirmala Sitharaman on the need for a cut in the Goods and Services Tax (GST) on health and life insurance has resonated with many, ToI reported on August 5. Indian consumers currently pay an 18 percent GST on these services, despite the healthcare system being a tax-funded public service responsibility. Gadkari's thoughts on completely removing the levy are, however, impractical as it would disrupt the GST chain, said the report (by Sidhartha). A complete removal would impact refunds for those selling goods or services to insurers. While a complete removal does not appear possible, there are strong arguments for reducing this tax. Approximately six months ago, a parliamentary standing committee led by Jayant Sinha also highlighted the need to reduce GST on health and term The GST Council has been discussing the need to review rates for several years but has refrained from making changes, even as tax collections have consistently increased insurance. The current tax environment imposes significant levies not only on insurance but also on other essential services such as telecom, which also attracts an 18 per cent GST. Air conditioners and cement, categorised under demerit goods, attract a 28 percent GST, with the GST Council, comprising Union and state finance ministers, ignoring repeated demands for tax cuts despite the essential nature of these items An examination of any car purchase invoice reveals substantial taxes paid both to the central and state governments. A "luxury vehicle" longer than 4 meters is subject to a 43 per cent GST. This is in addition to high registration costs and motor insurance premiums that increase even without claims, compounded by an 18 per cent GST. For sin goods like gutka or pan masala, the effective tax rate reaches triple digits. The GST Council has been discussing the need to review these rates for several years but has refrained from making changes, even as tax collections have consistently increased, the report said. As of now, any review seems months away. A panel of ministers, led by Bihar's Deputy Chief Minister Samrat Chaudhary, is required to draft a blueprint. This blueprint will undergo itemby-item review by the GST Council secretariat to prevent revenue loss. Only The rationalisation of GST rates is overdue and was initially planned to be carried out a few years after GST's implementation. However, the COVID-19 pandemic disrupted these plans. Despite many quarters blaming the finance ministry for high tax rates, officials point to states' reluctance due to fears of revenue losses, especially with the phasing out of the compensation cess. Adding to the complexity are higher inflation rates and the proposal to merge the 12 per cent and 18 per cent GST rates into a median rate of 15-16 per cent. This merger would slightly reduce rates for items like biscuits, ice cream, paints, refrigerators, TV sets (up to 32 inches), insurance, and telecom services. However, it would increase prices for items like bicycles, clothing, footwear costing up to Rs 1,000 per pair, pencils, pre-packed namkeen, bhujia and several other food items, which would then attract higher than the current 12 per cent tax. Additionally, this rationalisation would require raising the 5 per cent GST rate to 7-8 per cent to maintain steady revenue and narrow the difference between the new median rate and the rate for merit goods. For the government, nearly two-thirds of the revenue comes from the 18 per cent slab, with another 15-20 per cent from items that fetch 28 per cent. While a third of goods, mostly household items, are in the 5 per cent segment, their contribution to total revenue is minimal, staying in the single digits. There’s even a suggestion to bring some currently tax-exempt goods under the GST umbrella. "This is a good time to move ahead with rationalisation, which cannot be done overnight as the entire exercise will take a few months. The revenue situation has improved considerably, the economy is doing well and inflation has eased and is likely to improve further," ToI's report said quoting former CBIC chairman Vivek Johri. Tax experts have long been calling for these changes. "The process of rationalising the rates of GST and compressing the rate slabs in GST should now begin as the tax has now entered a stable phase with stable collections, increased compliance, and the growing focus on audits. Tax simplification has, in the past, led to increased collections arising from improved acceptance and the resultant growth in the number of compliant taxpayers," M S Mani, partner at Deloitte India, told the newspaper. The GST Council will also need to chart out a plan for cess on items like tobacco products, pan masala, automobiles, coal, and soft drinks. Nevertheless, the rationalisation process carries its own set of challenges. For instance, lowering GST on insurance to the lowest slab would mean higher levies on several inputs and larger refund outgo than the tax collected at the final stage, complicating the refund process.
Source: Economic Times
Synopsis Reforms in customs and banking rules, access to credit, and incentives at par with China are essential for India to boost its e-commerce exports to USD 350 billion by 2030, according to a report by the think tank GTRI. The Global Trade Research Initiative (GTRI) emphasized the need for separate regulations and ecosystems to support two types of e-commerce exports: direct export and overseas warehouse models. New Delhi: Reforms in certain customs and banking rules, access to credit, and incentives at par with China will be key for India to boost its exports through e-commerce medium to USD 350 billion by 2030, think tank GTRI said on Monday. The Global Trade Research Initiative (GTRI) report also suggested creation of separate regulations and ecosystems to support two different types of e-commerce exports - direct export and overseas warehouse models; supporting firm to open warehouses in key foreign cities; export incentives at par with physical shipments; marketing support; and creation of regional hubs for MSMEs. "Over 60 per cent of Chinese e-commerce exports (USD 330 billion in 2023) use foreign warehouses for faster delivery. They have special rules and support systems that help their e-commerce sector grow. If we do not adopt similar measures, our e-commerce exports might only reach USD 25 billion by 2030, despite having the potential to reach USD 350 billion," GTRI Founder Ajay Srivastava said. The global cross-border e-commerce exports are projected to grow from USD 1 trillion in 2023 to USD 8 trillion by 2030 on account of the ability of online firms to deliver overseas products to consumers within 1-2 days, matching the speed and convenience of local supplies. India's e-commerce exports could grow from USD 5 billion to USD 350 billion by 2030, thanks to strengths in customized products, traditional crafts, and a growing base of over 100,000 sellers. At present, the domestic sector is facing different issues and as successful ecommerce policies in China, Korea, Japan, and Vietnam have helped many firms sell globally, India too needs to publish an e-commerce export policy and these steps. It said that Indian regulations primarily cater to the direct export model, and separate regulations need to be introduced for meeting the needs of the warehouse model which has several benefits such as over 50 per cent savings in freight, no customs delays, and faster delivery. Warehouses can be established by the government, private sector, or ecommerce firms and efficient warehouse management including using foreign warehouses will immediately boost India's e-commerce exports, the report said. Currently, over 60 per cent of China's global cross-border e-commerce exports use overseas warehouses. Recommending nine customs reforms, Srivastava said that there is a need to set up a green channel for e-commerce shipments; single window system; complete digital submission of documents; and implementation of 24-hour automated inspections. "Create a dedicated green channel for e-commerce shipments across express, post, air cargo, and ocean cargo channels. This will ensure faster and more efficient clearance for e-commerce exports," the report suggested. On banking reforms, it said that most banks are not geared to cater to the small packet, low-value e-commerce requiring quick and low-cost processing. "Key issues include reluctance to process forex through alternative channels, high and multiple processing fees, incorrect allocation of purpose codes, limitations in the RBI's EDPMS (Export Data Processing and Monitoring *System*), and penalties imposed on exporters for banks' inefficiencies," he said. It recommended raising the export realization variation limit from 25 per cent to 100 per cent; waiving bank charges and automate processes; define a time limit for banks to complete all small export-related requests; and exempting shipment value up to USD 1000 per shipment from monitoring till single window is implemented. It also said that access to credit is a significant challenge for small ecommerce exporters in India and unlike B2B (business to business) exporters, who enjoy multiple financing options due to their priority status with banks, e-commerce exporters face several hurdles. It added that e-commerce exporters do not receive the same priority status as B2B exporters as they face higher interest rates (12-15 per cent) compared to B2B exporters (7-10 per cent). "Treat e-commerce exports on par with B2B exports. Include loans for ecommerce exports in priority sector lending. Provide easy credit access as it will allow small firms to expand operations, invest in new inventory, and improve their competitiveness in global markets," Srivastava said. Further e-commerce export shipments cleared through express courier mode do not get export incentives like Duty Drawback, RoDTEP (Remission of Duties and Taxes on Export Products), export promotion capital goods scheme (EPCG), and advance authorisation, creating a disparity compared to B2B. "India should extend existing export incentives to all e-commerce exporters, besides matching the incentive provided by Chinese provinces to e-commerce exporters," he added.
Source: Economic Times
The number of industrial companies in Tunisia has fallen, according to data from the Agency for the Promtion of Industry and Innovation (APII) to the end of June 2024, reported and analyzed by economist Hechmi Alaya’s “EcoWeek”,
The same source said there has been a “loss of 44 industrial sites in one year”, bringing the number of industrial companies that have closed down in the last five years to 623 over the last five years to 623, of which 239 (38.4%) are wholly export-oriented.
According to EcoWeek, this industrial death toll has mainly affected the textile sector, with 38 companies closing down in one year and 219 in the last five years.
An analysis of this industrial death rate shows that the Tunisian Sahel region and Greater Tunis are two strongholds of the textile sector.
There are 1,598 companies in the sector, including 1,232 in the warp and weft and knitwear sectors.
Source: African Manager
Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario. The business environment was facing an impasse because of the latest spells of violence and frequent shutdown of factories, for which they were unable to manufacture goods for export. Exporters also said, though July, August and September comprise the peak season for shipping goods meant for Christmas and for booking work orders for the coming summer and spring seasons, they were facing challenges in sending goods to retailers through Chattogram port amid violence. They were also unable to communicate with their business partners both at home and abroad because of the recent internet blackout across the country and for the violence. The apparel manufacturers are now planning to reopen their production units and to restart with a new vigour as they have been facing shutdowns, difficulties in transportation and shipment of goods over more than one month because of the political crisis. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called a meeting yesterday at 7:30pm to discuss the next course of action as the prime minister resigned, said a director.They decided that the garment factories and textile mills will stay shut for now considering the current situation. The owners may take a decision on factory reopening today. hey had earlier shut down their units two weeks ago for four days amidst violence and curfew. During the first round of shutdown, they could not even communicate with their international clothing retailers and brands because of an internet blackout across the country.
Because of the latest spell of student movement and political impasse, the BGMEA has already said they have lost Tk 6,400 crore while the textile millers said the amount of their loss is more than $58.8 million.
The garment and textile millers have shut down their production units across the country fearing labour unrest and vandalism, which will cause a massive loss for the sector.
During the first round of violence and curfew, the international clothing retailers and brands expressed concern over the situation as they were facing difficulties in placing work orders with factories and receiving shipments of goods from Chattogram port.
"We mainly discussed the issue of reopening the factories. However, we may take more time to reopen the factories considering the change in the political situation," said BGMEA Vice-President Arshad Jamal Dipu over the phone.
"We want to restart production in the factories very soon. But we need help from the administration for the smooth running of the units as their instructions are important for us," Dipu added.
Also, it recently became difficult to do business and international trade because this is the time to renew bond licences but many, especially the Chattogram-based exporters, are complaining that the customs department is not renewing the bond licences.
Many have been forced to adopt expensive air shipments because of delays in production and transportation of goods to the factories.
Also, many have been forced to provide discounts and accept cancellation of work orders from international retailers and brands because of the latest spells of violence and curfew.
Banks are charging a higher interest rate on loans, he said, adding that all these things are affecting business and all those issues need to be broadly discussed with the trade bodies and administration soon for resolving the issues.
"We have to work seriously now," Dipu also said.
"I hope everything will change now and business will soon be restored," said a garment exporter asking not to be named.
The work orders from international retailers and brands will also be restored soon as normalcy has also started to return, the exporter added.
"We are getting ready to reopen our factories as soon as possible," said a director of the BGMEA asking not to be named.
Source: The Daily Star
BEIJING - Suzhou, China’s traditional textile hub, has showcased opportunity for Pakistani businesses, China Economic Net (CEN) reported on Monday. Once known as a city of textile in ancient China, Suzhou today has established itself as an industrial hub in China’s economic landscape. This transformative image was featured during the recent Pakistan Investment and Trade Conference held jointly by the Consulate General of Pakistan in Shanghai and local authorities and enterprises in Suzhou last Thursday, underscoring the city’s potential for Pakistan-China collaboration across various sectors.
Shehzad Ahmad Khan, Consul General of Pakistan in Shanghai, said Suzhou, a historic treasure nestled beside Shanghai, has emerged as a beacon of modern development and a key hub for international collaboration. “My initial encounter with Suzhou was impressive – it stands as a testament to China’s rapid urbanization and economic strides,” remarked the Consul General. “Suzhou’s position as a manufacturing epicenter is undeniable, and the seamless flow of human resources between Shanghai and Suzhou underscores its strategic significance.” According to recent statistics released by the Suzhou Statistics Bureau, the city’s economy continued to thrive in the first half of 2024, with a gross domestic product (GDP) of RMB 1.2059 trillion, a significant increase of 6.2% year-on-year. The city’s manufacturing prowess is also evident: in the first half of 2024, Suzhou achieved a total industrial output value of RMB 2.2253 trillion, up 5.5% year-on-year. The Consul General further emphasized the strong synergies between Suzhou and Pakistani counterparts, particularly in the fields of textiles, renewable energy, electric vehicles and medical devices.
“We see immense potential for cooperation, whether through industry relocation, joint ventures, or foreign direct investment from China to Pakistan,” he said, adding that the existing ties between the two nations are rooted in their shared history of silk and textile production. The Consul General further emphasized the growing importance of Pakistan as a gateway to the European Union for exports, while noting its vast market for consumer products. The Conference culminated with a series of B2B networking sessions and individual meetings, presenting a golden opportunity for enterprises from both countries to delve into potential partnerships and discuss avenues for collaboration.
Source : Nation
