The Government has approved setting up of 7 PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with world class infrastructure including plug and play facility. The project has an outlay of Rs. 4,445 crores for a period of seven years upto 2027-28. The Government has finalized 7 sites viz. Tamil Nadu (Virudhnagar), Telangana (Warangal), Gujarat (Navsari), Karnataka (Kalaburagi), Madhya Pradesh (Dhar), Uttar Pradesh (Lucknow), Maharashtra (Amravati) for setting up of PM MITRA Parks. Once completed, it is envisaged that each park will lead to an investment (both foreign and domestic) of about Rs. 10,000 crores, benefiting the local economy and textile ecosystem. Special Purpose Vehicles (SPV) in respect of all 5 Greenfield sites viz. Gujarat, Tamil Nadu, Karnataka, Madhya Pradesh and Uttar Pradesh have been incorporated. In respect of Brownfield sites viz. Maharashtra and Telangana, the existing implementation arrangements has been allowed to continue as per guidelines. Under PM MITRA Park Scheme, for development of Greenfield PM MITRA and Brownfield PM Park, there is a provision of Development Capital Support (DCS) for creation of core infrastructure @30% of the project cost with a maximum support of Rs.500 Cr and Rs.200 Crore per park for Greenfield and Brownfield PM MITRA respectively from the Government of India. In addition, Competitive Incentive Support (CIS) to individual unit’s subject to a maximum of Rs. 300 crores per Park and further subject to Scheme guidelines is also provided under PM-MITRA for incentivizing manufacturing units to get setup early in PM MITRA Parks.
Source: Mari Time Gateway
“India can be a $55 trillion economy by 2047 as we are targeting 8% real growth and 5% inflation,” said Krishnamurthy V. Subramanian, Executive Director, International Monetary Fund & Former Chief Economic Advisor, Government of India. “To put this further into perspective, Japan experienced remarkable economic growth from 1970 to 1995, demonstrating the power of sustained development. The compounding effect on GDP growth means that each year of growth builds on the previous year’s achievements, creating exponential progress. China’s economic growth since 2007 offers a similar comparison, highlighting how strategic investments and policies can lead to significant long-term economic gains,” he said during the launch of his book ‘India @ 100: Viksit Bharat 2047’. The event was organised by the Confederation of Indian Industry (CII), in Chennai on Thursday. Mr. Subramanian further said, “The middle-income trap, a situation where a country’s growth slows after reaching middle-income levels, is a critical challenge we must address. Manufacturing growth and integration into global value chains are essential to overcoming this. State governments play a vital role in driving economic reforms to support these efforts,” he added. He then said: “Additionally, it is important to clarify the employment data and job creation landscape in India. Despite various reports, our focus remains on creating sustainable and meaningful employment opportunities for all.”
Source: The Hindu
Finance Minister Nirmala Sitharaman on Saturday said that the Indian garment sector is facing a bit of uncertainty due to the Bangladesh crisis. She, however, expressed hope that investments by Indian textile players in Bangladesh are safe. She also expects things in the neighbouring country to settle down soon. When asked about how India would be impacted because of situation in Bangladesh, she said that she got calls from Indian companies who have invested in the textile sector in Bangladesh Many of them were from Tamil Nadu. The investments were made in good faith and these investors did well having gone there. The exports from Bangladesh also increased. “So now particularly the garment and knitted fabric sector is seeing a bit of uncertainty. I hope that the investments are all safe,” she said during press conference after the RBI post-budget press conference. Further she said that it’s too early to assesss what kind of an impact the situation in Bangladesh will have on India’s economy. “You’ve had the Prime minister’s observations coming, a statement by the external EAM in the Parliament and the efforts that are being taken to ensure that our borders are safe. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy,” she added.
Crucial component Bangladesh‘s textile industry is a crucial component of its economy, contributing to 80 per cent of its exports and constituting 15 per cent of its GDP. The nation predominantly exports textiles to the European Union, the United States, Canada, Australia, and Japan. India plays a vital role as an export partner, supplying 20-25 per cent of the yarn that Bangladesh imports for producing garments. Earlier this week, Bangladesh plunged into a political crisis when Sheikh Hasina resigned as the Prime Minister and fled the country. Soon after Parliament was dissolved leading to the creation of an interim government. The 84-year-old Nobel laureate Muhammad Yunus on Thursday took oath as the head of an interim government, replacing Sheikh Hasina who abruptly resigned and fled to India leaving the country in turmoil following deadly protests against her government over a controversial quota system in jobs. On Friday, Yunus announced the portfolios of his 16-member council of advisors and named a former top diplomat to head the Foreign Ministry. The Nobel laureate’s first task is to bring stability to Bangladesh after he responded to a call by student protesters for him to temporarily lead the country following weeks of deadly anti-government demonstrations against the government led by Sheikh Hasina.
Source: The Hindu Business
India could gain 6-8% of Bangladesh’s monthly ready-made garment (RMG) export orders in the short term and 10% in the long term, presenting an opportunity of increments of $200-250 million and $300-350 million respectively, rating agency Care Edge Ratings said Thursday. “India is in a prime position to capitalise on the opportunity,” it said in a note. Bangladesh occupied the second position with around 8.5% market share of global exports in 2023. Its share rose consistently during CY15-CY23 largely at the expense of China, which remains number one. India remains at 7th in terms of global readymade garment trade with a market share of around 3-4% during this period. The socio-political uncertainties prevailing in Bangladesh may result in global RMG brands and retailers with a significant presence in Bangladesh diversifying their sourcing for meeting their delivery schedules, especially if the crisis persists for more than a quarter or two, it said “With the China+1 sourcing strategy already in the works, global RMG brands and retailers have limited alternatives such as India, Vietnam and Cambodia to replace Bangladesh,” it said. India has its presence across the textile value chain from fibre to garment, unlike Bangladesh which is largely dependent on the import of yarn and fabric, the agency said. The agency highlighted that various government initiatives such as PM Mega Integrated Textile Region and Apparel (PM MITRA) park, Production Linked Incentive (PLI) scheme, and free trade agreements (FTAs) with key export markets, are designed to enhance textile exports. “These factors collectively position India as a strong alternative for global brands seeking reliable garment supplies,” it said.
Source: Economic Times
Ludhiana: The ongoing political crisis and unrest in Bangladesh have sparked concerns in the global textile industry, but this new situation has opened a significant ‘growth opportunity’ for the domestic textile sector. Industry insiders believe that the disruption in supply chains, delays in delivery schedules, and overall production difficulties in Bangladesh could prompt international buyers to seek alternative markets, offering a potential opportunity for domestic manufacturers. Even the domestic sector, especially Ludhiana-based manufacturers, have already started receiving queries about potential export. However, they stated that it will be temporary growth, and their buyers will return to Bangladesh once the situation there normalises. Bangladesh, currently the second-largest exporter of textiles after China, has long been a crucial player in the global textile industry. Many large companies, including some from the domestic textile sector, have established manufacturing units in Bangladesh due to its competitive labour costs and robust production capacity. However, the recent political instability has cast a shadow over its ability to maintain these advantages, said stakeholders of the domestic textile sector.
Textile sector hinge on the duration of the crisis in Bangladesh. If the political situation stabilises quickly, many buyers and manufacturers may choose to continue their relationships with Bangladeshi suppliers rather than incur the costs and risks associated with shifting production to new locations. Badish Jindal, president of the All Industries and Trade Forums, said: “The new situation in Bangladesh has raised concerns among buyers, manufacturers, and investors, and they will look for alternatives now. Thus, it is a big opportunity for the domestic textile sector.” “However, they will be benefited only if the crisis continues for long as buyers and manufacturers will not opt for alternatives for disruption of a few days.” He said the timing of the unrest is particularly critical, as it coincides with the lead-up to the Christmas shopping season, one of the most important periods for the textile and apparel industries. Typically, orders for this season are placed well in advance, with deliveries scheduled for September and October. Any significant disruption in production and shipping from Bangladesh during this crucial period could force buyers to seek other suppliers to avoid potential losses. Jindal said this urgency might drive buyers to explore the domestic market as a viable alternative. “The companies will look for alternatives to avoid the losses in this season,” he said. “Besides, the fresh investment in Bangladesh will be on hold due to the new emerging political situation and India can also benefit from this investment.” Vinod Thapar, president of the Knitwear Club, said: “We are already receiving queries for export. But it will be a temporary gain as once the situation normalises the buyers will return to their original manufacturers and traders.
Source: Times of India
Indian government bond yields are expected to be largely unchanged at the start of the week as market participants await local inflation data later in the day and the inflation print in the world's largest economy on Wednesday. The benchmark 10-year yield is likely to move between 6.86 per cent and 6.90 per cent on Monday, compared to its previous close of 6.8812 per cent, a trader with a private bank said. "Even though local inflation is unlikely to have any major impact, investors would want to get past it before building positions for US retail inflation, which would be a major guide for interest rates," the trader said. India's July retail inflation will be published after market hours on Monday, and a Reuters poll predicts it to ease below Reserve Bank of India's 4 per cent target for first time in nearly five years. Inflation likely rose at an annual rate of 3.65 per cent last month, down sharply from 5.08 per cent in June, as rising food costs and hikes in telecom tariffs were offset by a higher base from July 2023. "The sensitivity from telecom tariff hike is seen staggered on CPI over next three months starting from August," said Siddharth Kothari, an economist with Sunidhi Securities. The RBI last week kept the key interest rate unchanged, retaining its focus on bringing inflation down even as global market volatility left other major central banks poised to ease. Meanwhile, the 10-year US bond yield consolidated around 3.95 per cent, after a volatile week that saw the yield crashing to a more than one-year low of 3.67 per cent amid recession fears in the US The market is almost equally divided between expectation for a 25 basis points and 50 bps rate cut from the Federal Reserve in September, compared to 100 per cent expectation of a 50 bps move early last week, as per the CME FedWatch tool. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Source: Business Standard
The Indian garment and knitted fabric sector is witnessing a bit of uncertainty due to the Bangladesh crisis, Finance Minister Nirmala Sitharaman said on Saturday, expressing hope that the interim government there will settle things "sooner rather than later." Interacting with the media on the sidelines of customary post Budget address to the central board of Reserve Bank of India, she said efforts are being taken to ensure that borders with the neighbouring country are safe. With regard to Indian investments, she said, the textile industry particularly from Tamil Nadu has made investments there in good faith and they have done well having gone there. "The exports from Bangladesh also increased because of the duty and quota liberal approach that we have towards low-income countries. They (Indian garment industry based in Bangladesh) could even export to India." Particularly, she said, the garment and knitted fabric sector is seeing a bit of uncertainty because of the crisis in the neighbouring country. "I hope that the investments are all safe... it's too early for me to see what kind of an impact this situation in Bangladesh will have on our economy. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy," she said. Earlier this week, Bangladesh plunged into a political crisis when Sheikh Hasina resigned as the Prime Minister and fled the country. Soon after Parliament was dissolved leading to the creation of an interim government. The 84-year-old Nobel laureate Muhammad Yunus on Thursday took oath as the head of an interim government, replacing Sheikh Hasina who abruptly resigned and fled to India leaving the country in turmoil following deadly protests against her government over a controversial quota system in jobs On Friday, Bangladesh's interim leader Yunus announced the portfolios of his 16-member council of advisors and named a former top diplomat to head the foreign ministry. The Nobel laureate's first task is to bring stability to Bangladesh after he responded to a call by student protesters for him to temporarily lead the country following weeks of deadly anti-government demonstrations against the government led by Sheikh Hasina.
Source: Economic Times
Since Sheikh Hasina assumed office as the Prime Minister of Bangladesh in 2009, the country has been a key ally of India. Her leadership has seen significant progress in bilateral relations, with a focus on infrastructure, connectivity, and trade. However, the recent political crisis in Bangladesh has raised concerns about the future of this partnership. On January 8, 2024, Sheikh Hasina declared that boosting the country's economy would be her top priority for the next five years. Yet, by August 2024, the nation was engulfed in violent demonstrations over a quota system for government positions, leading to a deepening domestic political crisis. As tensions escalated, Sheikh Hasina resigned and sought refuge in India, raising concerns about the stability of Bangladesh and its impact on Indo-Bangladesh relations. The Evolution of Indo-Bangladesh Relations Over the past decade, India and Bangladesh have fostered strong economic ties, with infrastructure and connectivity projects playing a crucial role in strengthening their relationship. Since 2016, India has extended $8 billion in credit to Bangladesh for the development of road, rail, shipping, and port infrastructure. The two nations have also engaged in various areas of commerce, including medical tourism, business expansion, and the international garment trade. Bangladesh, a major player in the global garment industry, relies heavily on cotton imports from India. The textile and garment sectors account for 56% of Bangladesh's total exports to India, making it a vital trading partner in South Asia. In the financial year 2023-24, bilateral trade between the two countries reached $13 billion, according to the Union Ministry of Commerce. The Impact on Trade Sheikh Hasina's leadership saw a flourishing of commerce between India and Bangladesh, leading to a significant trade surplus for India. However, the ongoing political turmoil in Bangladesh threatens to disrupt this economic partnership. The civil unrest and worsening economic situation have created security concerns that could impact Indian exports, commerce, and infrastructure projects in the neighboring nation. One of the major challenges will be on the bilateral trade front. After reaching $12.21 billion in 2022–23, India's exports to Bangladesh dropped to $11 billion in 2023–24.
Similarly, Bangladesh's imports decreased from $2 billion in the previous year to $1.84 billion in the most recent fiscal year. Indian exporters have voiced concerns about the situation in Bangladesh, fearing that the instability in the country will negatively affect commerce between the two nations. A significant scarcity of dollars in Bangladesh, as noted by the think tank GTRI, has already curtailed the country's ability to import goods, particularly from India. Uncertainty Surrounding the Free Trade Agreement In October 2023, India and Bangladesh discussed the possibility of a free trade agreement (FTA) during a Joint Working Group (JWG) on Trade meeting in Dhaka. An FTA could streamline regulations, encourage investment and commerce, and potentially remove customs tariffs, boosting trade between the two countries. According to a 2012 World Bank working paper, a full-product FTA could enhance Bangladesh's exports to India by 182%, while a partial FTA might grow them by 134%. This would contribute to strengthening Bangladesh's trade transport infrastructure and commerce links, leading to a significant rise in exports. However, the current political crisis has cast doubt on the future of the FTA proposals. Sheikh Hasina's exit might slow or pause this development, affecting the expansion of commerce and trade in new areas between the two nations. Challenges for the Textile and Garment Industry The ongoing crisis in Bangladesh could also have a negative impact on other sectors, particularly the textile and garment industry. In the fiscal year 2021-2022, Bangladesh exported garments worth $42.613 billion, solidifying its position as the second-largest apparel exporter globally. However, the recent incidents of factories being set on fire have raised concerns about the future of this industry. Many of these textile units are owned by traders associated with the Awami League Party, making them particularly vulnerable in the current political climate. While India has the potential to step in and provide garments to developed economies, there are certain drawbacks to this shift. Bangladesh, as a Least Developed Country, benefits from zero-duty advantages, while Indian goods face tariff barriers. If borders remain closed and duty-free export-import activities are suspended, there is a possibility of increased demand for Indian garments. However, it is still too early to make definitive predictions about the opportunities and gains that might arise from this situation.
Source: The Hindu
The unrest in Bangladesh has created some uncertainty for Indian textile companies’ investments there, and the Indian government is hopeful that those investments will remain safe when the situation in the neighbouring country will return to normalcy soon, Finance Minister Nirmala Sitharaman said on Saturday. “I would say at this stage, I have had discussions and calls coming on the matter of our textile garment investments which are in Bangladesh, many of which come from Tamil Nadu. The investments went there in good faith because they thought textiles and garment could do well and they did do well, having gone there,” Ms. Sitharaman said. These investments, the Minister said, also boosted exports from Bangladesh, including shipments to India, because of the duty-free and liberal import quotas India offers for lower income and least developed countries. While the garments, fabrics and textiles sectors are seeing a “bit of uncertainty” because of the situation, the Minister said: “I hope that the investments are all safe... Other than that, at this stage, it is too early for me to see what kind of impact this situation in Bangladesh will have on our economy.” “I hope that the interim government will settle things sooner rather than later, so that both the people of Bangladesh and India can get back to normalcy,” Ms. Sitharaman added.
Source: The Hindu
Indonesia recently extended safeguard tariffs on imports of textiles, carpets and other fabric coverings for three more years to protect and improve the competitiveness of the domestic textile industry. The decision followed the textile and textile product (TPT) sector’s struggle to return to pre-pandemic levels due to declining domestic and export demand and increasing competition. The sector witnessed a drop in jobs, with the workforce dropping from 3.98 million last year to 3.87 million this year. Added to the problem is the influx of textiles from abroad, particularly China, prompting government action to protect the industry. The regulations to protect the sector have been formulated after taking inputs from stakeholders, including relevant ministries, industry associations and trading partners, in line with World Trade Organisation guidelines. The Indonesian Filament Yarn and Fibre Producers Association said around 30 textile factories have shut down Bandung and Surakarta, causing 10,800 layoffs between January and May this year, up from 7,200 in 2023. The Confederation of Indonesian Workers reported nearly 50,000 layoffs in the TPT industry from January to early June 2024. West Java and Central Java, home to the largest concentration of factories in the sector, have seen the highest number of layoffs. Several companies, however, are reluctant to disclose layoffs to avoid affecting their relationships with banks and buyers, an Indonesian media outlet reported.
Source: Fibre2Fashion
The lawmakers at the Iranian Parliament, aka Majlis, have removed some inconsistencies in the preferential trade agreement (PTA) between Iran and Indonesia. The Majlis removed those inconsistencies found earlier by Iran’s Guardian Council, Iranian media reported on Sunday. It was in mid-May that the Iranian Parliament approved the preferential trade agreement between Tehran and Jakarta. Under the PTA, Iran lowers tariffs on imports of some products like textile, and processed food and pharmaceuticals from Indonesia, while Jakarta gives easier and further access to its markets for Iranian products, foreign media have reported from Jakarta a year ago.
Source: Iranian Labour News
SINGAPORE: Minister of Tourism, Culture and Environment Datuk Christina Liew was literally on the ground to promote Sabah’s Chanteek Borneo and its award-winning founder. She did exactly that during the recent inaugural Borneo Fest 2024 held at the Marina Square, here. “I am proud to introduce Anne Antah, Sabah’s very own textile designer who founded Chanteek Borneo. Chanteek Borneo is a household word in Sabah. It produces a variety of textiles featuring Sabah’s ethnic motifs. “We have brought Anne all the way from Sabah to showcase her exclusive fashionable wear and accessories for ladies and men. These are made with textiles designed by her,” Liew told the Singaporean audience. Sabah, the second largest state in Malaysia, is home to 35 indigenous ethnic groups and 217 ethnic subgroups, she said. Entrepreneurial Antah, a Sino-Kadazan, was pleasantly surprised and visibly shy when the minister called out her name, asking her to rise and be recognised, while delivering her opening speech. When interviewed at her exhibition booth, she said: “Chanteek Borneo’s participation in this Borneo Fest was my maiden attempt, and I was not sure what to expect. So I brought a few fashion products like the cardigan, necktie and scarf but what became a hit among the visitors was the twilly.” The multi-purpose twilly (or mini scarf) is a long and narrow scarf made of 100 per cent silk. Antah demonstrated how versatile the twilly can be, showing that one can wear it in more ways than one. “You can use it as a neck scarf or a hair accessory (hair band, hair ribbon, hair scarf or a hair tie). Some people use it as a bracelet or even as a wrap. Singaporeans call it bag tie because the scarf can be tied to the handle of a handbag,” she explained, adding that the twilly was selling well at the Borneo Fest. According to the textile designer, the feedback from visitors to her booth was that the twilly is very colourful and vibrant. “Singaporeans love the colours and presentation even though the textile prints are ethnic motifs. They were asking enthusiastically where to get the stock in Singapore and whether I would be coming for the next expo,” Antah said, while thanking the Sabah minister for her encouraging support. “I have yet to find a Singapore distributor for my products.”
Source: The Borneo Post
