The government has extended the interest equalisation scheme (IES) for pre and post shipment export credit for a month pending final decision on whether the scheme should stay for a much longer period. This is the second extension of the scheme after it ended on June 30. In July it was extended for two months till the end of August but only for Micro Small and Medium enterprises that export their own manufactured products and Rs 750 crore were allocated for it. The latest extension for the month of September is also limited to MSME manufacturing exporters, according to a trade notice by the Directorate General of Foreign Trade. Till June the interest equalisation scheme provided upfront reduction in interest rates on per-shipment and post shipment export credit by banks. The exporters from Micro Small and Medium Enterprises exporters got a rebate of 3% on loans under the scheme. The merchant exporters who source goods for exports from other manufacturers and others use to get 2% benefit for exports of 410 identified products. The discount given by banks is reimbursed by the government. The commerce ministry is seeking a five-year extension of the scheme on the same terms which existed before June 30. Exporters are asking for the subsidy amount to be raised to 5% for MSMEs and 3% for merchant exporters as interest rates have gone up since the rates were set. An official had recently said that a decision on the extension of the scheme will take time as it is yet to be examined by the Expenditure Finance Committee. The EFC is an appraisal body in the Ministry of Finance that considers proposals. The EFC is one of several appraisal bodies that recommend proposals to the Cabinet or Cabinet Committees. The scheme was initially launched on April 1, 2015 for a five-year period till March 2020. Due to COVID it got a one-year extension in 2020. Later more extensions were accorded and the latest one is to end on June 30. When the scheme was launched it offered a rebate of 5% to MSME exporters and 3 % manufacturers and merchant exporters and they were reduced to the current levels in October 2021. The scheme costs the government around Rs 3200 crore a year. In 2023-24, Rs 3700 crore were spent on the scheme. Around Rs 1700 crore has been provided for the scheme in the budget for 2024-25. “The allocation for the scheme in the budget is for the current liabilities. For extension of the scheme additional allocation will be required,” the official had said.
Source: Financial Express
India’s textile industry is expected to grow to US$350 billion by 2030 and add 3.5 crore jobs. This was stated by Union Minister of Textiles, Giriraj Singh during the Curtain Raiser event of Bharat Tex 2025 today in New Delhi. He further expressed hope of India being recognised by its Bharat brand and green sustainable textile products at the world stage. Singh asserted that the Union Governments PLI scheme for textiles will enable the apparel industry to boost production and promote their branding. The Minister also added that the PLI scheme will enable linking of the textile value chain and lure FDI in the country. The domestic equity benchmarks ended with minor losses on Wednesday. The Nifty snapped its 14-day winning streak and settled a tad below the 25,200 level. Global market jitters over a potential US economic slowdown and anticipation of key economic data weighed on sentiment. Despite early losses, selective buying in large-cap stocks helped limit the decline. Healthcare and pharma sectors outperformed, while IT and PSU banks faced selling pressure. The S&P BSE Sensex slipped 202.80 points or 0.25% to 82,352.64. The Nifty 50 index declined 81.15 points or 0.32% to 25,198.70. The 50-unit index had risen 4.73% in the past 14 consecutive sessions. In the broader market, the S&P BSE Mid-Cap index fell 0.15% and the S&P BSE Small-Cap index rose 0.26%. The market breadth was negative. On the BSE, 1932 shares rose and 2019 shares fell. A total of 96 shares were unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.86% to 14.38.
Source: Business Standard
Tamil Nadu Industries, Investment, Promotion and Commerce Department has issued a government order enhancing the capital subsidy under the existing special scheme for technical textiles to 25% from 15%, which will be disbursed over a period of 10 years and expanding the scheme to cover medium enterprises. On March 18, 2023, Chief Minister M.K. Stalin had released the special scheme for technical textiles, Man-Made Fibre (MMF) yarn from recycled products, MMF fabric and apparel manufacturing in the State. As per the existing scheme, projects manufacturing eligible products in textiles, MMF yarn from recycled materials or MMF fabric can avail a special subsidy of 15% of eligible fixed assets disbursed in equal annual instalments over 10 years. Tamil Nadu Industries, Investment, Promotion and Commerce Department has issued a government order enhancing the capital subsidy under the existing special scheme for technical textiles to 25% from 15%, which will be disbursed over a period of 10 years and expanding the scheme to cover medium enterprises.
A company can choose to avail of the special capital subsidy for technical textiles, MMF yarn from recycled materials and MMF fabric from the date of commercial production or upon achieving the minimum eligible investment (which is ₹50 crore for technical textiles, ₹50 crore for MMF yarn from recycled materials or ₹100 crore for MMF fabric) and minimum eligible employment of 50 jobs, whichever is later.
In his budget speech for 2024-2025, Finance Minister Thangam Thenarasu announced that the capital subsidy for major investments under the existing policy for technical textiles would be increased from 15% to 25% and disbursed over a period of 10 years and the scheme would also be expanded to cover medium enterprises.
The government order is issued to implement the budget announcement, and eligible projects can avail of the enhanced special capital subsidy of 25% of eligible fixed assets disbursed in equal annual instalments over 10 years, V Arun Roy, Secretary, Tamil Nadu Industries, Investment, Promotion and Commerce Department, said in the order.
Source: The Hindu
The new textile policy of Tamil Nadu will be aligned to strengthen Tiruppur’s high standing in value-chain in apparel business, Dharmendra Pratap Yadav, Principal Secretary, Handlooms, Handicrafts, Textiles and Khadi Department, said here on Wednesday With service sector accounting for 65% of the State’s GDP, the challenge was in enlarging the contribution of manufacturing sector since it was employment oriented next only to agriculture, Mr. Yadav said. Accompanied by District Collector T. Christuraj, the Principal Secretary inaugurated the 51st India International Knit Fair organised jointly by the Indian Knit Fair Association (IKFA) and the Apparel Export Promotion Council (AEPC), a three-day event on the theme: Preserving Our Planet by Innovation and Circularity. Mr. Yadav expressed hope that Tiruppur, accounting for ₹35,000 crore export business and ₹25,000 crore domestic trade, will take the lead in ESG (Environment and Social Governance), and attract more investments in the garment sector which contributes to women empowerment with them accounting for 80% workforce. Talking to mediapersons later, the Principal Secretary was said the spinning sector in Tamil Nadu, which constitutes 35% production at the national level, requires modernisation, and the State Government has set apart ₹500 crore corpus to offer 6% interest subvention for industries undertaking modernisation of machinery. The State Government has given a push to technical textiles, and for scaling up exports in the industrial policy. A corpus of ₹25 crore has been earmarked for a design centre to focus on research and development in new ways of manufacturing and processing in line with international trends, he said. Sakthivel, Chairman, Indian Knit Fair Association, said 40 out of the 100 buying houses/agents taking part at the fair were from other countries. The Tiruppur Exporters’ Association was keen on projecting its initiatives towards ‘Green Tiruppur’, Mr. Sakthivel said, exuding hope that the government will consider their request for measures to make improvements in Tiruppur in the area of ESG. K.M. Subramanian, president, TEA, was hopeful of registering a 10 percentage point rise in diversification to man-made fibres (MMF) by Tiruppur manufacturers from the existing 20 The emphasis of Rohit Aneja, secretary, Association of NIFT (National Institute of Fashion Technology) Alumni; Rohini Suri, patron, IKFA; and Sanjay Shukla, group leader - Triburg, was on speedy diversification of Tiruppur garment manufacturers to man-made fibres. Seventy percent of the global trade was in MMF, and cracking the polyster game will place Tiruppur and the country on the right track of development, Mr. Shukla said.
Source: The Hindu
THE World Bank’s (WB) latest India Development Update has some good news to offer: The Indian economy continues to grow at a healthy pace despite challenging global conditions. The WB has upwardly revised the growth forecast for the country’s economy to 7 per cent from the earlier projection of 6.6 per cent in the current financial year. The not-so-good news is that India is losing out to competitors like Vietnam and Bangladesh among low-cost manufacturing export hubs. As per the WB, India needs to diversify its export basket and leverage global value chains to reach its $1- trillion merchandise exports goal by 2030. The report’s unwritten message for India is that there is no room for complacency on the trade front. It is obvious that the ‘Make in India’ push is not really translating into a ‘Make for the world’ success story. And what won’t be music to the Modi government’s ears is the fact that the nation’s share in the global exports of apparel, leather, textiles and footwear has declined from 4.5 per cent in 2013 to 3.5 per cent in 2022. The corresponding share of Bangladesh touched 5.1 per cent in 2022, while that of Vietnam reached 5.9 per cent. No less worrisome is India’s increasing trade deficit (the difference between imports and exports) with China. Amid the military stalemate in eastern Ladakh, Beijing is upstaging Delhi with its no-holds-barred economic muscle-flexing. From umbrellas to musical items and toys, there is no stopping the influx of Chinese goods into India. Political and economic instability in Bangladesh has given India an opportunity to regain lost ground. The key is to reduce production costs and improve productivity without compromising on quality. Considering India’s reluctance to be part of mega trade blocs, a greater emphasis on bilateral Free Trade Agreements with Western and Gulf nations is the best bet to counter the Vietnamese-Chinese challenge.
Source: Tribune India
Synopsis The Free Trade Agreement (FTA) between India and the UK is nearing completion, with both sides just a step away from finalizing the deal, according to NITI Aayog CEO B.V.R. Subrahmanyam. Negotiations for the FTA, which began in January 2022 and were paused due to elections in both countries, aim to significantly boost the existing GBP 38.1 billion annual bilateral trade. The Free Trade Agreement (FTA) being negotiated between India and the UK is in the final stages with both sides within finger-touching distance to clinch an agreement, NITI Aayog CEO B.V.R. Subrahmanyam said here on Wednesday. The FTA, negotiations for which were launched in January 2022 before being stalled due to general elections in both countries, is aimed at significantly enhancing the estimated GBP 38.1 billion a year bilateral trading partnership. During the signing ceremony for the new UK-India Infrastructure Financing Bridge (UKIIFB) agreement, both sides were keen to stress that the bilateral partnership is not being held "hostage" to the FTA even as the newly elected governments on both sides remain committed to it. "I think this is a deal that is in the last slab. The two sides I would say are not even at hand-shaking distance, the fingers are touching. It's just a question of that extra five inches and you can grab the deal," Subrahmanyam said while addressing a panel discussion on the future of India-UK trade "The relationship between two countries should not be hostage to a trade deal... India-UK partnership has many, many dimensions to it - infrastructure finance, climate, technology... FTAs enable a sense of familiarity to get things accelerated, in addition to massive opportunities, not only in goods but in services on both sides. It's a perfect fit, perfect match," he said. The UKIIFB, signed between NITI Aayog and City of London Corporation in London on Wednesday, is aimed at facilitating international investments into India's ambitious infrastructure projects and is seen as a sign of the economic partnership moving at pace unencumbered by the FTA talks. "I'm not betraying any negotiating secrets when I tell you, we believe we are close. But, of course, the proof of the pudding is not just in the eating, but in ensuring that it comes out of the oven at the right time. So, we are in the process of sort of getting the last bits in place and those are always the hard yards," said Indian High Commissioner to the UK Vikram Doraiswami. "But the FTA, in totality, is a very important part but (only) one part of the larger strategic relationship we seek to have the UK... that includes opportunities such as this UKIIFB to look at the financial services sector and essentially create a long-term viable channel for capital to be deployed profitably in India for the benefit of both economies; to look at technology; to look at research and innovation," he said. Ben Mellor, Director at the UK's Foreign, Commonwealth and Development Office (FCDO) India and Indian Ocean Directorate, noted that the newly elected Labour government had the India FTA - talks for which began under the former Conservative regime - as a manifesto commitment. "It is something that we will seek to get agreement on as soon as possible. I think we need to be very realistic about the prospects and the challenges that still remain to get the deal across the line," said Mellor, referencing the "protectionist instincts" within sections of both economies. "The deal will deliver economic opportunity, growth and jobs in both our countries. Therefore, it is really important for those of us who are strong believers in the UK-India relationship to continue to make the case for why a good, substantial free trade agreement is in both our country's interests. But an FTA is not the only thing that speaks to that relationship," he said. UK Business and Trade Secretary Jonathan Reynolds had announced at the end of July that teams would be "entering negotiating rooms as soon as possible", with the trade talks expected to pick up from the fourteenth round where they were left off. Chris Hayward, Policy Chairman of the City of London Corporation, indicated that things are going through a "verification process" of what has been agreed so far and to assess the outstanding issues to take the FDA forward. "We've just got a new government. They're going to take a bit of time, and it's right that they should have that time to move forward... the aspiration of both countries is to try to arrive at an FTA," said Hayward, who reiterated the City of London's hopes for the deal to be "heavily focused on the services sector"
Source: Economic Times
Brigadier General (retd) Sakhawat Hossain, advisor to the Ministry of Textiles and Jute, urged Pakistani investment in Bangladesh’s jute and textile industries on Tuesday. “Pakistani investors can come forward to invest in the closed state-owned textiles and jute mills in Bangladesh … They can invest in other sectors as well,” he said when Pakistan High Commissioner to Bangladesh Syed Ahmed Maroof made a courtesy call on him at his Secretariat office. The Pakistani envoy praised the region’s jute-made golden bags and stated that he was excited to invest in Bangladesh’s textile and jute industries. Additionally, Bangladesh was invited by the Pakistani ambassador to take part in the October Textile Expo in Pakistan. M Abdur Rauf, the Textile and Jute Secretary, emphasised the importance of strengthening trade ties between Bangladesh and Pakistan. He stated that Pakistani traders can import a variety of jute goods from Bangladesh, as more than 200 different jute products are on display at the ministry’s Jute Diversification Promotion Center (JDPC). Iddition, the Pakistani high commissioner suggested starting direct shipping between Bangladesh and Pakistan. “The system will help to take forward the eco-social relations of the two countries,” he said.
He stated that Bangladesh Shipping Corporation and Pakistan Shipping Corporation might collaborate to make the vision a reality.
Source: Apparel Resource
Turkiye’s gross domestic product (GDP) with chain-linked volume index increased by 5.1 per cent year on year (YoY) last year and by 2.5 per cent YoY in the second quarter (Q2) this year, according to Turkish Statistical Institute (Turkstat). GDP per capita was 311,109 TRY and $13,243 at current prices in 2023. Seasonally- and calendar-adjusted GDP with chain-linked volume index increased by 0.1 per cent quarter on quarter (QoQ) and calendar-adjusted GDP increased by 2.8 per cent YoY in Q2 2024. Exports of goods and services increased by 0.04 per cent YoY in Q2 2024 in the chained-linked volume index; such imports decreased by 5.7 per cent YoY. In 2023, the Turkish manufacturing industry had the largest 19.5 per cent share of GDP, followed by wholesale and retail trade (13.9 per cent).
Exports of goods and services decreased by 2.8 per cent YoY, while such imports increased by 11.8 per cent YoY in 2023 in chain-linked volume index.
Source: Fibre2fashion
The European Commission recently adopted four guidance documents to support work by European Union (EU) countries in transposing and implementing revised directives on renewable energy and energy efficiency into national law. This package will support national administrations by providing clarity on the more complex elements of the new legislation and give a common basis for introducing the new requirements in national law across EU countries. The adopted guidance covers three areas related to the Renewable Energy Directive where progress needs to be accelerated: heating and cooling, energy system integration and renewable fuels of non-biological origin (RFNBOs). The Commission also adopted a guidance document relating to the heating and cooling aspects of the revised Energy Efficiency Directive, an official release said. The new rules in the directive on energy system integration and electrification are key to making the energy system more flexible by integrating large shares of variable renewable electricity and by promoting electricity use in transport and heating.
The guidance on energy system integration clarifies the new requirements for electricity system operators to provide information close to real time on the renewable energy share and the greenhouse gas emissions content of the electricity supplied to end users. To enable real-time access to basic battery management information, the guidance provides clarity on the obligations for battery and electric vehicle (EV) manufacturers. It also clarifies requirements to enable smart and bi-directional recharging, and on the possibility for small and decentralised energy sources to actively participate in electricity markets.
The guidance on the articles in the directive related to RFNBOs clarifies the targets on the consumption of RFNBOs in the industry and transport sectors. It explains the calculation of the targets, their scope and the interlinkage between the two targets for industry and transport. Heating and cooling accounts for roughly half of all the EU’s energy use. The revised directive includes targets to increase the share of renewable energy in heating and cooling, district heating and cooling and industry, and new 2030 national benchmarks for renewable energy in buildings.The guidance on heating and cooling clarifies the new provisions and the accounting of higher share of renewable energy in this sector. It also provides additional explanations on how to apply the definition of waste heat in the context of the directive.
The revised Renewable Energy Directive is the main legislative framework to drive the deployment of renewable energy in the EU. Its 2023 revision increased the EU’s 2030 renewables target to at least 42.5 per cent, aiming to reach 45 per cent. It also introduced new measures to accelerate the uptake of renewable energy projects.
Source : Fibre2fashion
