New Delhi, Union Minister Giriraj Singh on Tuesday assured the government's support to beneficiaries of the production-linked incentive scheme for man-made fibre apparel and fabrics and technical textiles products. During an interaction with the textiles minister, the participants showcased the ongoing commitment, successes, experiences, feedback, and challenges of the schemes. Singh said the government is committed to support the growth and innovation within the textile sector. Future strategies and enhancements to further strengthen the scheme's effectiveness were also discussed during the interaction. "The feedback and ideas shared during this session are invaluable, our continued success in the textile sector relies on collaborative efforts and open communication. I am encouraged by the dedication of PLI scheme participants and their commitment to advancing our industry," said the minister. He also urged participants to expedite grounding their investment, Giriraj said. The government approved the PLI scheme for textiles with an outlay of Rs 10,683 crore over a five-year period to promote production of man-made fibre apparel, man-made fibre fabrics and products of technical textiles in the country.
Financial Year 2022-23 and 2023-24 were gestation periods under the PLI scheme for textiles. The performance years commence from 2024-25 and will continue till 2028-29.
Source: Money Rediff
Handlooms and BC welfare minister S Savitha has said that the govt will release a textile and garments policy to attract substantial investments in the sector. She said that the govt is committed to provide necessary infrastructure and incentives to boost the growth of textile sector in the state. The minister held a video conference with textile industry leaders from the secretariat on Monday. The minister told the industrialists that the govt has been working to foster a conducive environment for attracting investments. She said that the industry is also showing interest in investing in the state. “The govt has identified the textile sector as one of the key drivers for employment generation and bolstering economic growth. We will release a business-friendly textile policy in the near future," said the minister. The minister said that industrialists had fled the state during the previous five years when the YSRCP was at the helm. She alleged that the YSRCP govt's policies had tormented industrialists, leading to several of them shutting down their operations in Andhra Pradesh, which severely impacted employment generation.
Source: Times of India
Despite global macro-economic conditions, India continues to remain a bright spot and is expected to be the fastest-growing major economy this year, a report showed on Tuesday. The country has become the fifth-largest economy in the world and is set to be among the top three global economic powers soon. Dr Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), stated last week that the country is likely to achieve this feat by 2027. Also Read - FDI inflows surge 26% during Q1 The IMF has raised its economic growth forecast for the country for FY25 to 7 per cent from 6.8 per cent projected in April. The overall headline numbers of India’s economy are strong, reflecting a large amount of public investment which has been a critical factor driving growth. According to the latest report by Motilal Oswal Private Wealth (MOPW), corporate earnings growth over the last five years has been stellar and this has been the primary driver of equity market performance. The report mentioned that for the top-500 listed companies (Nifty500), the PAT growth between FY19-24 was 22 per cent, and the total market cap of these companies has grown at the same rate during this period. “Earnings growth is expected to moderate going forward,” it added. In terms of valuations, large caps are in fair valuation while mid and small caps on aggregate are relatively expensive.
Source : Bizz buzz
The Directorate General of GST Intelligence (DGGI) has detected tax evasion of Rs 1.2 trillion using fake input tax credit (ITC), since 2020 to date, with special emphasis being laid on identifying and apprehending the masterminds and disrupt syndicates, operating across the country, the finance ministry said in a release on Tuesday. The Goods and Services Tax (GST) intelligence department has identified about 59,000 potential fake firms for verification and further inquiry, while 170 individuals involved in fraud have been apprehended. This was revealed during the national conference of enforcement chiefs of GST, following which the ministry’s release was issued. This comes against the backdrop of a special drive being undertaken by both the Centre and State to identify and weed out fake registrations. The two-month special all-India drive was launched on August 16 to detect suspicious/fake GSTINs, conduct requisite verification and take remedial action to weed out these fake billers from the GST ecosystem in order to safeguard government revenue. While addressing the conference, Revenue Secretary Sanjay Malhotra stressed the importance of maintaining a fine balance between enforcement actions and ease of doing business. He exhorted Central and State GST formations to focus on fake registrations during this special drive and stressed the need for tracking the masterminds and beneficiaries of fake ITC so that strict action is taken to have the necessary deterrence effect. Malhotra said that recent changes implemented in the GST returns such as GSTR-1A would further aid the efforts towards tackling GST evasion in a systematic manner. During the event, Sanjay Agarwal, chairman, Central Board of Indirect Taxes and Customs (CBIC), advised the enforcement units to focus on real evasion rather than interpretative issues and general industry practice. “Some of the best practices/guidelines issued to bring uniformity in action and ensuring ease of doing business were also deliberated upon,” ministry release said.
Source: Business Standard
Container unavailability, higher freight costs and reduced demand collectively led to a decline – though marginal – in Gujarat’s exports in FY 2023-24. According to data by the Directorate General of Foreign Trade (DGFT), Gujarat’s exports stood at Rs 11.12 lakh crore in the 2023-24 financial year compared to Rs 12 lakh crore in 2022-23. In 2022-23, Gujarat’s exports went up by 26.9% compared to 2021-22 when the state’s total exports were valued at Rs 9.45 lakh crore. Gujarat’s share in the country’s total exports also declined from 33.14% to 30.74% during this period. Explaining the reasons for the decline in exports from Gujarat, Pathik Patwari, chairman – Gujarat council, Indian Chamber of Commerce, said, “Demand is the major factor that has dampened exports. This is especially true for sectors such as textiles, engineering goods, chemicals and even IT and ITeS. The consumer behaviour and spending in the western world have undergone a major change due to inflation and other price pressures. For instance, the demand was particularly poor in Europe due to cash flow issues.” “The ongoing container crisis and a dramatic rise in freight costs have further dampened demand. This is because a rise in cost will immediately reduce the cost competitiveness of Indian manufacturers. At the same time, the order volumes will also be in limited quantities, thus affecting overall exports,” Patwari further explained.
Source: Times of India
Two important export promotion measures–the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Interest Equalisation Scheme (IES)--are likely to be extended to help exporters retain their competitiveness in a choppy global market, sources said. The RoDTEP scheme, under which all embedded input duties and taxes paid during manufacture of an exported product are reimbursed, is valid only till September 30, 2024. But it is now set to be extended for all 10,000 plus product lines that are currently covered under it. “The extension of RoDTEP is likely to be at least for the fiscal year 2024-25 and may even be beyond it depending on funds,” an official tracking the matter told businessline. Certain iron and steel items not covered under RoDTEP are likely to continue to be excluded. A meeting of the Quarterly Monitoring Committee for RoDTEP and the RoSCTL schemes headed by the Finance Secretary will take place soon where a call will be taken on RoDTEP extension and its duration, the official added. “Our review suggests that if exports continue to grow slow, we can manage with available funds of Rs 16,075 crore for 2024-25. However, if there is substantial growth in exports we will need to ask for more funds. But we foresee some savings under RoSCTL,” the source said. The RoSCTL or Rebate of State & Central Taxes and Levies scheme is for exports of made-up articles & garments and is similar to RoDTEP scheme. “Textile exports are almost flat this year so the10 per cent enhancement in outlay they got in the budget, of about Rs 800 crore, should be available for RoDTEP. But the decision has to be taken by the Finance Secretary-led committee,” the source explained. An early decision is also likely on extension of the interest equalisation scheme as it already lapsed for the 410 beneficiary sectors (non-MSME) on June 30 2024. Only a twomonth extension was given to the MSME sector which will lapse this month-end. Under the scheme, loans are extended at a subsidised rate determined by the government to beneficiary exporters. “A final note seeking extension of the interest subvention scheme, for all beneficiaries covered under the lapsed scheme, will be soon presented before the Expenditure Finance Committee and then to the Union Cabinet. The Commerce Department wants a five-year extension, but a final decision will be taken by the EFC and the Cabinet. Goods exports in the April-July 2024-25 period grew 4.15 per cent (year-on-year) to $144.12 billion while in July exports dipped 1.4 per cent to $33.98 billion affected by geopolitical turmoil and increased protectionism.
Source: The Hindu Business Line
With exporters grappling with tepid external demand and other disruption to trade, the Department of Commerce is pushing for an extension of two export-boosting schemes — Remission of Duties and Taxes on Exported Products (Rodtep) and Interest Equalisation Scheme (IES) — beyond their expiry date. While the IES is valid till August 31, the Rodtep scheme will end after September 30. A meeting between officials of the Department of Commerce and the Ministry of Finance regarding the schemes is expected to take place soon, a person aware of the matter said. While Rs 16,575 crore for FY25.
Source: Business Standard
Synopsis India is upgrading ports to bolster its manufacturing and exports. Efforts include expanding the Jawaharlal Nehru Port and constructing a new deep-water port in Vadhvan. These enhancements aim to cut trade costs and speed up delivery times, appealing to global companies looking to diversify manufacturing away from China. The Rishiri Galaxy, a Panamian-flagged tanker 1 1/2 times the length of a football field, sat tethered to the dock on a muggy day at the Jawaharlal Nehru Port on the west coast of India. Freshly arrived from the Persian Gulf, it bore industrial chemicals -- raw materials for Indian factories that make pharmaceuticals, auto parts, cosmetics, construction materials and scores of other modern concoctions. At a second terminal nearby, overhead cranes plucked shipping containers off another vessel operated by Maersk, the Danish shipping conglomerate, setting them onto the beds of trucks. The trucks would haul this cargo -- electronics from South Korea, palm oil from Indonesia, machinery from Europe -- to warehouses throughout the world's most populous country. Roughly 1 of every 4 shipping containers passing through India is loaded or unloaded here, on the docks jutting into the Arabian Sea just south of Mumbai. The flow of containers has roughly tripled over the past two decades reaching the equivalent of 6.4 million 20-foot boxes last year. Yet by the standards of the world's largest ports -- many of them in China -- it remains a small operation. India is now pursuing an aggressive campaign to catch up, readying plans for new ports while expanding existing docks. Whether those designs come to fruition and how quickly could shape the results of one of India's grandest aspirations: swelling into a full-fledged manufacturing and export colossus. That prospect is increasingly imaginable as multinational retailers that have long leaned heavily on factories in China to make their goods seek alternative venues, spooked by trade hostilities between U.S. and China and the supply chain disruptions of the pandemic. That effort is intensifying as businesses absorb the expectation that trade relations between the world's two largest economies will remain unsettled regardless who wins the U.S. presidential election in November. Many major brands are exploring factories in India. "The world doesn't want total dependence on China," said Unmesh Sharad Wagh, chair of the Jawaharlal Nehru Port Authority. "Definitely, the best alternative is India. Now, people are shifting their base to India." Major retailers like Walmart are expanding their sites to India. But whether this trend endures, producing a sustained increase in additional factory orders India's ports are able to do their part. At the Jawaharlal Nehru Port, in Navi Mumbai, construction crews are doubling the size of one of the five terminals, adding two berths. The major action is aimed at Vadhvan, an industrial area 100 miles up the coast. There, the port authority is proceeding with plans to construct an enormous facility that will have capacity to move 20 million 20-foot containers per year, roughly triple the size of the existing Navi Mumbai port. The project, estimated to cost more than $9 billion, is to be built in two phases, with completion in 2035. It recently gained the approval of India's Cabinet. The key to the new port is its deep water, which can accommodate the world's largest container ships, those large enough to hold as many as 24,000 boxes. The rest of India's ports can handle ships carrying up to 18,000 containers. That limitation constrains the flow of trade. Roughly 25% of the container cargo between India and Europe or East Asia is routed through ports in Singapore, Dubai, United Arab Emirates, or Colombo, Sri Lanka, where their shipments are transferred to and from smaller vessels that are able to dock in India -- the equivalent of having to change planes in Chicago or Atlanta, rather than catching a nonstop flight. As a result, Indian shippers are spending roughly $200 extra per 20-foot container, and the journeys are taking an additional three days, Wagh said. A three-day gap in delivery time undermines India's competitiveness as a place to make goods. The Vadhvan port is aimed at reducing such costs and speeding delivery time, Wagh said. "We should not be depending on the smaller vessels," he said. "Our port should be ready for our future growth." Another port in the southern Indian state of Kerala is being engineered to accommodate the largest container vessels, relying heavily on automation. It recently received its first container ship to test its operations and is expected to open late this year. That facility -- delayed for years by the opposition of local communities -- is a project of the Adani Group, a central element of the commercial empire amassed by billionaire magnate Gautam Adani. Adani has long enjoyed close ties with Prime Minister Narendra Modi, who in June began his third term. Modi is a weakened figure following national polls that forced his Hindu nationalist party to forge a governing coalition to maintain power but is expected to continue his drive to spend aggressively on infrastructure. Some argue that the expansions underway are already keeping pace with India's growing exports. "Port capacity is going up everywhere," said Shashi Kiran Shetty, founder and chair of Allcargo Group, one of India's largest logistics companies. "We probably can handle another 25 or 30% increase in demand." He noted the expansion of capacity in recent years at a major container port in Mundra. Recent months have seen chaos at some ports on India's west coast, with outbound cargo piling up, as ocean carriers bypass some destinations to focus their vessels on major routes linking East Asia to Europe and North America. Much of the disruption is the result of ships avoiding the Suez Canal to evade attacks by Houthi rebels in Yemen. Ships are instead traveling the long way around Africa. Given the extra distance, shipping companies need extra vessels to maintain weekly schedules. They have diverted some ships that would normally call at Indian ports. Another source of concern is the possibility of dockworker strikes at India's 12 largest ports amid an impasse in contract negotiations. In the longer term, those dependent on trade in India call for more aggressive action to deepen the channels at existing ports -- a costly and complicated process. "Dredging has to be done at Indian ports," said Dushyant Mulani, chair of the Federation of Freight Forwarders' Associations in India, which represents trucking firms, customs brokers and other companies. "China definitely has an edge over India." congested and bumpy highways that slow the movement of cargo, for instance, and a train system that has traditionally prioritized the moving of passengers. Rail authorities are nearing completion of a dedicated rail corridor to move freight between Mumbai and New Delhi. That will allow the double-stacking of containers, while permitting trains to double their speed, effectively quadrupling the system's capacity. The national government is also overseeing the construction of highways. The question is how long those efforts will take to finish, and whether they can keep pace with growing volumes of cargo. The demands will be even greater if India emerges as a viable alternative to industry in China. "Rail and road both have to move faster," Wagh said.
Source: Economic Times
India's commodities exports, including marine products, rice, gems & jewellery, and petroleum products, declined steadily between April and July 2024, with 12 of the 30 major export items dipping further in July, according to the latest data from the ministry of commerce and industry. During July, the export of commodities such as coffee (-0.98%), rice (-15.30%), cereals (- 81.43%), cashews (-25.51%), oil seeds (-0.01%), marine products (-4.58%), ceramic products & glassware (-21.13%), gems & jewellery (-20.36%), organic & inorganic chemicals (-12.03%), cotton yarn & handloom products (-4.13%), jute (-14.30%) and petroleum products (-22.15%) declined in value terms from the same month last year. However, the export of commodities such as electronics (37.31%), engineering (3.66%) and pharmaceutical products (8.36%) rose annually during July, edging out traditional export shipments of textiles, chemicals and jewellery and signalling a crucial shift in export trends. Nine of the 30 major export items dipped in value terms annually during June, while 10 of the 30 dipped in May and 17 in April. During April-July, 12 of the 30 major export items fell in value terms from the same period last year. These included rice (-4.29%), cereals (77.18%), cashew (-19.14%), oil meals (-16.48%), oil seeds (-8.61%), marine products (- 7.20%), iron-ore (-15.47%), mica, coal & other ores (-1.09%), leather & leather products (- 2.05%), ceramic products & glassware (-7.82%), gems & jewellery (-7.45%), and jute (- 12.50%).
Exports of the top 30 commodities stood at $31.83 billion in July, down from $32.63 billion in July 2023, the commerce ministry data showed. During April-July, exports of the top 30 commodities stood at $135.34 billion, up from $130.77 billion a year ago. The merchandise trade deficit – the difference between the country's exports and imports – stood at $23.5 billion in July, larger than the $20.98 billion deficit recorded in the previous month and $19 billion in July 2023. A spokesperson for the commerce ministry did not respond to Mint’s emailed queries. Global economic weakness Experts attributed the slump to global economic weakness. "Despite growing exports, the second successive month of decline in goods exports (in July) and three-quarter-high goods trade deficit show that global demand is yet to pick up meaningfully amid tepid growth and geo-economic fragmentation," said Manoranjan Sharma, chief economist at Informatics Ratings. "This process could negatively impact the macro-economy and the domestic currency and necessitates focused efforts to step up exports for economic growth and structural transformation," he added. According to a Bank of Baroda analysis, the trade deficit widened by about $10 billion during April-July from the same period of the previous year. "India’s merchandise trade deficit was higher, as imports have risen at a sharper pace than exports (both on sequential and cumulative basis). The sequential increase (in imports) is attributable to non-oil and non-gold imports, signalling resilient domestic demand," Dipanwita Mazumdar, an economist at the Bank of Baroda, said in the report. "Going forward, we expect some correction in the trade deficit as a revival in the export cycle cannot be ruled out. Easier monetary conditions are expected to boost demand conditions globally," Mazumdar added.
Source: Live Mint
The North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC) under the Indian ministry of development of North Eastern region (DoNER) recently received the OEKO-TEX certification from Germany for its eri silk. The certification is a rigorous standard that ensures textiles are tested for harmful substances and produced in environment-friendly conditions. Eri silk is known as the world’s only vegan silk, where, unlike other silks, the moth inside the cocoon is not killed. Instead, the moth naturally exits the cocoon, leaving it behind for use. This achievement further cements the silk's status as a geographical indication (GI)-tagged product of Assam state, highlighting its authenticity and regional importance, a press release from the ministry noted. This milestone opens new doors for eri silk, positioning it as a leading eco-friendly fabric in the international market, it added.
Source: Fibre2fashion
Indian exporters are keeping their fingers crossed amid the outbreak of Monkeypox in Africa, as the continent is a crucial region for domestic exports. According to exporters, though the spread of the disease is contained in certain countries, it would be a challenge, if it spreads to more nations. "As of now, the spread is not rampant, but looking into the infection, the exporters are definitely concerned, hoping it will not spread," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. Another exporter said that so far, there is no lockdown-like situation in the continent, and therefore, no payment delays are happening "But, we are keeping our fingers crossed," he said. Think tank GTRI said the direct impact of the MPox outbreak on global trade has been relatively limited so far, though the situation warrants close monitoring. Unlike the Covid-19 pandemic, which led to strict travel bans, the current MPox situation has not necessitated such drastic measures, Globe Trade Research Initiative (GTRI) founder Ajay Srivastava said. However, "India must remain vigilant to the evolving situation. India should take precautionary measures to mitigate any potential disruptions in trade and ensure that its public health responses are well-coordinated to prevent the virus from impacting its economy," Srivastava said. Currently, there are no reported cases of Monkeypox in India, even though cautionary measures will be put in place to prevent and control the spread of the disease, the Union Health Ministry said on Saturday. In view of the World Health Organization (WHO) again declaring Monkeypox a public health emergency of international concern on August 14, a detailed review of the situation and the preparedness was taken last week by Union Health Minister JP Nadda at the meeting with the senior officials of his ministry. In 2022, the WHO first declared the outbreak a public health emergency of international concern. It was decided that as a matter of abundant caution, certain measures like sensitising the health units at all airports, seaports and ground crossings; readying the testing laboratories (32); gearing up health facilities for detecting, isolating and managing any case are put in place. The WHO's declaration of 2022 was revoked in May 2023. Since 2022, it has globally reported 99,176 cases and 208 deaths due to Monkeypox from 116 countries. The bilateral trade of India with Africa grew by 9.26 per cent in 2022-23 to about $100 billion. The exports stood at $51 billion, while imports were $47 billion. Both sides are looking at taking the trade to $200 billion by 2030. India's exports to Africa are dominated by crude oil and pharmaceutical products, accounting for nearly 40 per cent of the total exports into African markets. Primarily, Africa exports raw materials like crude oil and minerals, gold, copper, and cashew nuts to India and imports refined petroleum, pharmaceutical products, vehicles, and telecom equipment.
Source: Business Standard
Synopsis Union Commerce Minister Piyush Goyal expressed concerns regarding the fast expansion of e-commerce in India, highlighting potential social disruptions. At a report launch, he stressed the need to evaluate the sector's broader impact on market dynamics and consumer behavior, even as the industry continues to grow. Union Commerce Minister Piyush Goyal on Wednesday expressed concerns over the rapid expansion of ecommerce firms in India, describing it as a "matter of concern" rather than an achievement. Speaking at an event for the launch of a report on the 'Net Impact of ECommerce on Employment and Consumer Welfare in India', Goyal raised questions about the potential social disruption that might follow this surge. "Are we going to cause huge, social disruption with this massive growth of ecommerce? I don't see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern,” Goyal remarked. Goyal emphasized the need for a thoughtful approach to the role of ecommerce in India. "E-commerce has a role, but we have to think carefully about what that role is and how it can be more organized," Goyal stated. He also raised concerns about the pricing strategies used by some e-commerce firms, questioning, "Is predatory pricing policy good for the country?" "E-commerce is eating into the small retailers' high value, high margin products which are the only products by which they survive," Goyal added. The minister made it clear that while he acknowledges the permanence of the e-commerce industry, it is crucial to assess its broader impact. He pointed out that the industry does not dominate every aspect of retail but emphasized that only a small portion of the population currently uses online platforms to purchase essential items like food and groceries. In the race for market share, with a growth rate of 27 percent per year, concerns were raised by Piyush Goyal about the potential disruptions that could be caused for the 100 million small retailers across the country who also serve the market. Support was expressed by Goyal for the offline retail channel in this context. Goyal questioned the excitement surrounding Amazon's announcement of a billion-dollar investment in India, urging a closer examination of the underlying implications. "When Amazon says we are going to invest a billion dollars in India and we celebrate, we forget the underlying story that this billion dollars is not coming for any great service or investment to support the Indian economy," Goyal remarked. He pointed out that Amazon reported a billion-dollar loss on their balance sheet that year and suggested that such losses could be indicative of predatory pricing practices. "If you make Rs 6,000 crore loss a year, doesn't it sound like predatory pricing to you? They are, after all, an e-commerce platform, and they are not legally allowed to do B2C. However, the reality is all of you buy on these platforms. How are they doing it? Should it not be a matter of concern for us?" The minister also expressed concern over the imbalance between small traders and large retailers, highlighting the decline of small mobile stores. "How many mobile stores do you see now on the corner? And how many were there 10 years ago? Where are those mobile stores? Will only Apple or the large retail sell mobile phones and their accessories?" he questioned, underscoring the challenges faced by small retailers in the current market landscape. Goyal's comments reflect a broader concern about the balance between technological advancement and social stability, urging a careful approach as the e-commerce sector continues to expand in the country.
Source: Economic Times
India’s home textile market, valued at $9.6 billion in 2024, is projected to grow to over $15 billion within the next five years, according to Mordor Intelligence. The country accounts for nearly 7 per cent of the global home textiles trade, with a significant share of exports to the United States. Welspun Living Ltd is a major player in the industry with a market capitalization of approximately $2 billion. In an interview with Aggam Walia, Dipali Goenka, CEO and Managing Director of Welspun Living, discussed sluggish domestic demand, competitiveness of the Indian textile industry, and emerging sustainability standards in global trade. Edited Excerpts:
Post-Covid, there has been a trend of premiumisation in various consumer sectors. There have also been concerns around a K-shaped trajectory of economic recovery. Is that a trend you see in the textile sector as well?
Yes, you are right. Let’s talk about the GDP of India, a steady state GDP of around 7 per cent and inflation also controlled. Having said that, last year saw slow growth in the whole consumption story. The whole investment was in infrastructure and that’s where the growth was coming in. But the consumer was not buying. It was really very slow. Having said that, the luxury segment was growing.
Now as we go forward, I think we are seeing an off take happening. But let me also tell you that the first quarter started very slow with single digit growth. Now, with the holiday season coming in–they always say August 15 to Jan 26 is India’s season of festivals–we’ll see how that pans out. The signals are coming in that it’s going to be reasonably okay.
The textile sector is one area where the government is focussing on increasing exports. However, Vietnam and Bangladesh are seen to be more cost-competitive compared to India. Do you see things changing?
When you talk about competitiveness, India is in a very good spot, both in terms of its consumer story and its position in the world supply chain. In my category, cotton, India is now the biggest producer and exporter, especially after the Xinjiang issue in China.
Looking at countries like Bangladesh, Vietnam, and Pakistan– Bangladesh has been at the epicentre of the textile value chain due to low manpower costs. But they’re struggling now with a single port, infrastructure issues, rising power costs, and recent unrest causing instability. Vietnam is like a satellite for Chinese companies, and minimum wages are rising there too. Pakistan also faces challenges. India, on the other hand, is a stable democracy with a young workforce. The government is taking many initiatives in skilling and improving competitiveness. The recent budget highlighted skilling opportunities, including for women. We see India in a very good position right now. It’s also up to us to make this happen or lose the opportunity.
One problem stakeholder in the midstream segment talk about is an uncompetitive raw material supply chain, specifically for man-made fibres. Do you think that’s a concern?
India is primarily a cotton-growing country, focused on natural fibres. When you talk about polyester, China definitely has a competitive edge. But with the PLI schemes coming in and the government’s impetus on manmade fibres, that’s something we’ll have to watch going forward. For Welspun, though, we’re in a good spot, as we consume more than 85 to 90 per cent natural fibre.
Europe is looking at introducing sustainability standards for textile imports, like it has done for steel. Now, the steel industry has been scrambling to become compliant. Do you see similar challenges for the textile industry?
I’m very happy it will happen because It’s something the textile industry urgently needs to tackle, especially with the landfill challenges we’re facing. At Welspun, we’ve committed to a 2030 target, with clear milestones that we report on a quarterly basis. This includes being energy and water positive and minimising our environmental impact. One of the biggest challenges is post-consumer waste, particularly when exported products need to be reintegrated into our value chain. The infrastructure to handle this is still developing, but we’re actively working on recycling and innovative solutions. I believe Europe’s lead in ESG practices sets a crucial example. We must take these requirements seriously, as they’ll shape the future of global trade. We’ve already seen the benefits of moving towards sustainability. For example, our Anjar facility operates entirely on recycled water. We’re also transitioning to green energy by 2030, driven by past experiences where the rising costs of coal imports caused significant disruptions. Running plants on green energy not only gives savings of 30 to 40 per cent, but also ensures long-term stability and competitiveness in an uncertain energy market.
Welspun exports heavily to the US and some other locations as well. How do markets abroad compare with India?
The American consumer is highly capable, with the United States accounting for 30 percent of global home textile consumption. The UK and Europe follow, but their market is fragmented. India is slowly emerging, though its base remains small. The American market is huge and highly engaged, with frequent buying occasions like college events, Mother’s Day, Father’s Day, and Black Friday sales. America’s consumer economy presents great opportunities due to its large base. Even if I grow at 4 or 5 per cent, though we are growing at a close double digit, we see that it’s good enough because the base is so huge. The UK and Europe have been struggling, but the European economy is showing signs of improvement. Japan is increasingly looking towards India as an alternative to China for outsourcing. The Middle East is experiencing rapid growth, especially in the luxury segment. For example, our Christy brand is growing at over 35 percent there.
How do you see the relationship between e-commerce and traditional retail evolving in India?
In the US, e-commerce is growing significantly. Before Covid, we thought it was cannibalising retailers and offline stores. But they’re now learning to coexist. It’s become quite beautiful – as a consumer, I can buy offline, online, or pick up from the store. Stores are becoming like warehouses. You have inventory there, can dispatch from the store, or buy from the store. It’s called BOPIS – buy online, pick up in store. In India, while organised retail exists, mom-and-pop stores still rule. The kind of service they provide is unmatched. They’re going to be a very important and integral part of India’s entire ecosystem.
Source: The Hindu
Synopsis "We have initiated long-term policy reforms, particularly in the mineral sector, which have already begun benefiting the eastern states," Pradhan said. Kolkata: Union minister Dharmendra Pradhan on Tuesday emphasised the need to enhance exports from eastern India and sought cooperation from the state governments in the region. He also underscored the government's commitment to ensuring the region benefits from various free trade agreements under the export promotion policy. In this year's budget, eastern India was highlighted as a priority area for development under the Purvodaya scheme, with matching infrastructure creation being a key focus, Pradhan said on the sidelines of an Exim Conference organised by the CII here. "We have initiated long-term policy reforms, particularly in the mineral sector, which have already begun benefiting the eastern states," he said. "The Centre is making efforts, but state governments must cooperate. Industrial growth and job opportunities are contingent on a stable environment," he said. The minister also highlighted the need to diversify beyond the mineral sector, advocating for growth in various sectors like food processing, marine products, animal husbandry, and especially the IT sector, given the talent and presence of reputed educational institutions in cities such as Kolkata, Jamshedpur, Patna, Ranchi and Bhubaneswar. Pradhan also stressed that law and order must be a priority to attract industrial development and job creation.
Source: The Economic Times
Many Vietnamese textile and garment enterprises are intensifying efforts to turn their production processes sustainable to adhere to buyer nations’ environmental standards and regulations concerning product origin. For the textile and garment industry, key European Union (EU) regulations include the ecodesign requirements for sustainable products, waste directives and extended producer responsibility programmes. The Vietnam National Textile and Garment Group (Vinatex) is implementing carbon reduction solutions by measuring the carbon footprint across product life cycles and developing a green, circular production strategy. The group's members have reduced electricity consumption per product unit by 2 per cent compared to 2022 so far. However, the Vietnam Textile and Apparel Association (VITAS) feels domestic legal frameworks are limited, with no specific policies or regulations for the sector regarding a circular economy. Regulations on greenhouse gas inventory and carbon taxes are lagging behind international timelines, it said. Meeting green standards in the textile industry also requires substantial conversion costs and long transition periods. As most Vietnamese textile exporters are small and medium enterprises, this poses a problem. Many Vietnamese businesses are also keen on investing in green logistics that can help reduce transportation costs and raise efficiency in supply chains by optimising delivery routes and limiting the number of empty or half-loaded trucks on the road. Tran Thanh Hai, deputy director general of the Agency of Foreign Trade under the ministry of industry and trade (MoIT), said green logistics is not just a trend but a mandatory requirement in the future, meaning businesses could face barriers in terms of awareness and motivation to transition. Some businesses are aware of this but are too small in scale or have limited funds to make reasonable investments. While there is a high demand for environmental friendliness, customers are not willing to pay more for sustainable logistics services. Another MoIT official said green logistics is a relatively new concept that is not understood fully and accurately in many developing economies, including Vietnam.
Source: Fibre2fashion
Ahmedabad: With improvement in the political situation in Bangladesh, exports of textiles and chemicals from Gujarat have started to normalize, according to industry experts. Traders have started getting fresh orders for cotton yarns and dye chemicals from the neighbouring country, which is one of the biggest export markets for Gujarat’s textiles and chemicals industries. Sources in the industry further said that while the payments have improved over the past week, the exporters were still cautious with their business transactions. For the spinning sector, Bangladesh is the biggest export market, with India exporting 428 million kg of cotton yarn, which was 35% of India’s total yarn exports in 2023-24. In the case of reactive dyes, Gujarat exports more than 3,500 tonne of dyes every month to Bangladesh. Textiles, especially garment manufacturing, is the biggest contributor to Bangladesh’s economy, and it cannot afford to lose this business Bharat Chhajer, former chairman of the Powerloom Development and Export Promotion Council (PDEXCIL), said, “The textile industry in Bangladesh has resumed operations and the situation there is becoming normal. Exports to Bangladesh had stopped in the wake of the violence there and cotton yarn containers were held up at various ports in India.” Exporters are cautiously watching the situation unfolding in Bangladesh and taking measures for safe business, he added. Jayesh Patel, senior vice-president of the Spinners’ Association Gujarat (SAG), said, “Exports to Bangladesh have resumed and enquiries have also started, but overall costing does not match the manufacturing cost.” The textile and chemical industry in Gujarat faced a tough time after the Covid-19 pandemic. Both sectors have witnessed a revival in the current financial year. However, the political disturbance in Bangladesh had the industries worried. Manish Kiri managing director of a chemical company said “Gujarat’s dyestuff We have seen that the situation is becoming normal for businesses sooner than expected. The payment situation has improved, and new enquiries and orders have also started flowing in,” explained Kiri.
Source: Times of India
