Synopsis The government aims to extend the duty remission scheme for exporters beyond September but is still awaiting approval for interest subvention from the finance ministry. The scheme, known as RoDTEP, is expected to continue to help maintain export competitiveness. Govt is hoping to extend the duty remission scheme for exporters beyond Sept, but a decision on interest subvention is awaited in the absence of a finance ministry nod, as per a TOI report. TOI Sources said the duty refund scheme or RoDTEP is likely to continue in its existing form as govt seeks to ensure that exports stay competitive and are not burdened by levies. On Wednesday, the commerce department sought to bridge the information gap through Trade Connect ePlatform that will provide detailed information on global demand of a product, country-wise trade information, global standards, market access conditions, compliance requirements and forge connections with international buyers. "It will be a ChatGPT for exporters... We want entrepreneurs to grow in the trade business. Unless and until, we have entrepreneurs, the dream of $2 trillion exports of goods and services (by 2030) will be difficult to achieve," said commerce secretary Sunil Barthwal. Commerce and industry minister Piyush Goyal said it will act as a one-stop solution for all kinds of information like duties, rules, and regulations.
Source: Economic Times
Synopsis The Ministry of Finance has notified new Foreign Exchange (Compounding Proceedings) Rules 2024 to simplify foreign investment regulations. The rules aim to streamline processes and facilitate ease of doing business. Digital payment options for fees and compounding amounts will be introduced, emphasizing the government's commitment to promoting investment and business ease. The Ministry of Finance on Thursday notifies the new Foreign Exchange (Compounding Proceedings) Rules 2024 to simplify rules and regulations for foreign investments. The new rules are aimed at streamlining and rationalising existing rules and regulations to further facilitate ease of doing business. The Finance Ministry said in a statement, "As part of a broader initiative to streamline and rationalise existing rules and regulations to further facilitate ease of doing business, the compounding proceeding rules were comprehensively reviewed in consultation with the Reserve Bank of India." The new rule will replace the existing Foreign Exchange (Compounding Proceedings) Rules 2000. The ministry said that the government is emphasising simplifying the provisions to expedite and streamline the processing of compounding applications. The finance ministry is also working to introduce digital payment options for application fees and compounding amounts, with a focus on simplification and rationalisation of the provisions to eliminate ambiguity and clarify the process. "These amendments indicate the commitment of the government towards promoting 'ease of investment' for investors and 'ease of doing business' for businesses," the ministry said. The Compounding of Foreign Exchange (FEMA) Proceedings Rules, 2000 govern the process of resolving or settling offences related to violations of the Foreign Exchange Management Act (FEMA), 1999. Compounding under these rules allows individuals or entities to admit a violation and pay a penalty to avoid protracted litigation or criminal prosecution. The move was taken after Union Finance Minister Nirmala Sithraman emphasised that the government would prioritise foreign investment in the country and that it would come up with flexible rules to promote foreign investments. The finance minister has indicated in her budget speech that the rules and regulations for FDIs and overseas Investments will be simplified to facilitate foreign direct investments, nudge prioritisation, and promote opportunities for using Indian Rupee as a currency for overseas investments.
Source: Economic Times
On Wednesday, September 12, the Government of India unveiled a trade portal offering a wide range of information on exports and imports, benefiting new and existing entrepreneurs.The Trade Connect platform was created by the Ministry of Micro, Small & Medium Enterprises (MSME), EXIM Bank, TCS, the Department of Financial Services (DFS), and the Ministry of External Affairs (MEA). Commerce and Industry Minister Piyush Goyal introduced the portal, stating that it would serve as a single point of access to various information, including customs duties, rules, and regulations. The portal aims to tackle information asymmetry by providing exporters comprehensive support and resources. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi mentioned that it will give exporters real-time access to critical trade-related information while connecting them smoothly to key government entities like the Indian Missions abroad, the Department of Commerce, Export Promotion Councils, and other trade experts.
He highlighted that the platform is designed to assist businesses throughout their export journey, regardless of whether they are experienced exporters or new entrants. Sarangi added that the second version will include services like banking, insurance, and logistics. The platform will link more than 600,000 IEC (import-export code) holders, over 180 Indian Mission officials, over 600 Export Promotion Council Officials, and officials from DGFT, the Department of Commerce, and banks. The information available on the platform will comprise customs duties and regulations by product and country, details about free trade agreements, trade-related services offered by different departments and agencies, non-tariff barriers, and information about global buyers and exhibitions. Commerce and Industry Minister Piyush Goyal presented the portal, emphasizing that it would be a one-stop solution for various types of information, including customs duties, rules, and regulations. Goyal assured that the portal will be updated regularly, and input from stakeholders will help launch its second version in 2025. He mentioned that global trade is facing challenges, but this is an effort to increase India’s worldwide market share. He also added that the portal will be available in regional languages. Commerce Secretary Sunil Barthwal said that the platform will help both existing and aspiring exporters. He further added that, “It will be a ChatGPT for exporters… We want entrepreneurs to grow in the trade business. Unless and until, we have entrepreneurs, the dream of USD 2 trillion exports of goods and services (by 2030) will be difficult to achieve.”
Source: Equity Pandit
Synopsis German Foreign Minister Annalena Baerbock has praised India's Unified Payments Interface (UPI) for its rapid payment capabilities. Speaking at the Annual Ambassadors’ Conference in Berlin with Indian Foreign Minister S. Jaishankar, Baerbock recounted her previous experience as an ambassador to India, where she observed people using UPI for everyday transactions like grocery shopping. German Foreign Minister Annalena Baerbock has lauded the Unified Payments Interface (UPI) for its fast payment features. During the Annual Ambassadors’ Conference in Berlin, where she spoke alongside Foreign Minister S. Jaishankar, Baerbock reflected on her tenure as ambassador to India two years prior, recalling how she observed people using UPI to purchase groceries. “We met two years ago for the first time when I was in Delhi. I used your Metro and experienced your modernisation strategy kilometre by kilometre,” Baerbock recalled. She added that she was impressed by UPI after seeing people buying groceries on the streets and using the digital instant payments system to make payments. “I also saw people buying groceries and was very impressed by your Unified Payments Interface, a digital instant payment system. I thought this would be impossible in Germany,” she added “...but we also watched that closely, and we did a big jump compared to our speed here in Germany. Also, with regard to digitalisation, I saw not only that it's possible to pay on the street with digital payments but also I saw unfortunately in our Embassy, in our consulate that we are carrying application forms for Visa still in boxes,” she noted. “So I thought, ‘Okay, I cannot change the payment on the street, but I can definitely change the digitalisation in our ministry’,” Baerbock said. German minister uses UPIto buy vegetables in India Last year, Volker Wissing, who is minister for transport in Germany, was seen impressed by the UPI system in the viral clip, shared by the German Embassy in India on X. Wissing was seen buying vegetables from a street vendor in Bengaluru and used the UPI system to make the payment “One of India's success stories is its digital infrastructure. UPI enables seamless transactions within seconds, with millions of Indians using it. Federal Minister for Digital and Transport @Wissing experienced the simplicity of UPI payments firsthand and was highly impressed!” the post said.
Source: Economic Times
July received much higher rainfall, which cooled temperatures, thereby easing demand for power, and boosting manufacturing. The Index of Industrial Production (IIP) growth increased marginally to 4.8% in July from 4.7% in June mainly due to a rise in manufacturing activity, official data released on Thursday showed. Manufacturing growth during July stood at 4.6%, higher than 3.2% the previous month. Mining and electricity growth, on the other hand, stood at 3.7% and 7.9%, respectively, in July. In June, both the groups grew at 10.3% and 8.6%, respectively. July received much higher rainfall, which cooled temperatures, thereby easing demand for power, and boosting manufacturing. At the use-based classification level, there was a moderation in the y-o-y growth of all the sectors barring capital and intermediate goods in July. Capital goods grew at a nine-month high of 12% during the month, signalling an uptick in investment activity. “This was supported well by the government capex which picked up in July 2024. The capex of the union and the states (25 state governments) jumped 42.8% yoy to Rs 1.17 trillion during July,” India Ratings and Research (Ind-Ra) said in a note. Consumer durables growth eased to 8.2% in July from 8.4% in June, and consumer non-durables growth fell to (-)4.4% from (-)1.5%. The latter’s fall was the steepest in 21 months. “This suggests that the stress in rural demand hasn’t bottomed out yet,” said Ind-Ra.Rajani Sinha, chief economist, CareEdge said that an improvement in kharif sowing amidst a good monsoon bodes well for the private consumption demand. “Overall, a sustained and meaningful improvement in consumption and private capex remains critical for the performance of industrial activity,” she said. Economists expect the August IIP print to be around 3% due to the statistical effect of a high base. In August 2023, IIP growth was 10.9%.
Source: Financial Express
Recent political turmoil in Bangladesh, marked by violent protests over job quotas, has sent shockwaves through the South Asian textile industry. This upheaval not only poses security risks in India’s neighborhood but also creates significant implications for Indian companies, particularly those in the textile sector. The resulting “Bangladesh+1” strategy adopted by global brands opens new avenues for Indian textile exporters, potentially reshaping the regional industry landscape. This article explores how the “Bangladesh+1” strategy, triggered by recent political unrest, creates opportunities for Indian textile companies. It examines how key players like K.P.R. Mill, Trident, and Raymond are positioned to capitalise on this shift, potentially reshaping the regional textile industry landscape.
Bangladesh Economic Landscape
Bangladesh has established itself as a powerhouse in the global garment industry, exporting approximately $47 billion worth of ready-made garments in 2023. The country commands a high double-digit market share in the European Union and the United Kingdom, along with a 10% share in the United States. The crisis particularly affects yarn exporters, as Bangladesh currently accounts for 25-30% of India’s yarn exports. Conversely, the situation presents opportunities for Indian companies in the export market. Global brands seeking to diversify their sourcing away from the troubled zone may turn to Indian manufacturers, benefiting companies listed on Indian stock exchanges.
Industry Overview
India’s domestic apparel and textile industry plays a crucial role in the national economy, contributing 2.3% to the GDP, 13% to industrial production, and 12% to exports. The country holds a 4.6% share in the global textile and apparel trade, accounting for 10.5% of India’s overall export basket. India’s strengths lie in being one of the world’s largest producers of cotton and jute, the second-largest silk producer, and the source of 95% of the world’s handwoven fabric. The Indian textile sector, as the country’s second-largest employer, provides direct employment to 45 million people and supports 100 million in allied industries. Current textile exports stand at $36 billion, with projections to reach $100 billion by 2030. The industry aims to achieve $250 billion in textile production by the same year. India has also emerged as the second-largest manufacturer of personal protective equipment (PPE) globally. Over 600 Indian companies now produce PPEs, tapping into a market expected to grow from $52.7 billion in 2019 to $92.5 billion by 2025. The country’s silk production, particularly Eri and Muga varieties, has seen significant growth, increasing by 6% and 6.7%, respectively, in 2021-22.
Source: Brain
The global textile and apparel community has taken note of Uzbekistan's prospects, it was revealed at the ITMF Annual Conference and IAF World Fashion Convention held in Samarkand this week, with the country now looking to triple its global exports by 2026. Key speakers at the event included leading Uzbekistan textile producers, international investors, and representatives from public organisations and regulatory bodies, who explored the sector’s potential and outlined the steps needed to ensure Uzbekistan’s success in the global textile and apparel arena. In recent years, Uzbekistan’s textile and apparel industry has undergone significant reforms and modernisation, aligning itself with international regulations and the highest quality standards. The introduction of cotton-textile clusters in 2017, along with progressive labour regulations and an eventual lifting of the cotton boycott in 2022 has transformed the industry, with the country now part of the Better Cotton Initiative and the Better Work programme. Strong government support continues to attract investors including Youngone Corp which operates two factories in the country and is planning to expand further, bringing $55m in investments and creating over 5,000 jobs. The country’s Prime Minister recently told an audience it is welcoming new investment into the sector. Between January and July of this year alone, Uzbekistan exported over $1.7bn worth of textile products to 85 countries across all continents. By 2026, the country aims to triple its export volume to $6.5bn, underscoring its commitment to global growth and market expansion.
Source: Just Style
Hellen Kahaso Dena, who leads the Pan-African Plastics Project at Greenpeace Africa, recently urged the Ghanaian government to ban the import of unusable clothing and textile waste from the Global North. If imported textile waste, which often contain harmful chemicals, is not effectively managed, it could lead to soil and water contamination and harm ecosystems and public health, she said while launching a report by Greenpeace Africa on the toxic impact of fast fashion on Ghana in Accra. Ghana is drowning in fast fashion waste, with children drinking, eating and breathing microplastics, she was cited as saying by a news agency. Urging the government in Ghana to promote sustainable fashion, Dena said the trade in used clothing usually involved smuggling, making it difficult to trace the origin of the articles, and as a result, Africa has turned a dumping ground for Europe’s unwanted textiles. To avoid the extra regulations associated with waste exports, textile waste is often misclassified or labelled as used clothes, when in it is actually unusable trash, she said. She urged the government to implement the ‘polluter pays principle’ to address environmental and health damage, and to adopt systems in the Global North that recognised and mitigated risk associated with the international trade of used clothing.
Source: Fibre2fashion
The ITMF Annual Conference and IAF World Fashion Convention kicked off in Samarkand this week, with insightful discussions on the promising future of Uzbekistan’s textile and apparel industry. Key speakers, including leading Uzbek textile producers, international investors, and representatives from public organizations and regulatory bodies, explored the sector's potential and outlined the steps needed to ensure Uzbekistan’s success in the global textile arena. In recent years, Uzbekistan's textile industry has undergone significant reforms and modernisation, aligning itself with international regulations and the highest quality standards. The introduction of cotton-textile clusters in 2017, along with progressive labour regulations followed by cotton boycott lifting in 2022, has transformed the industry. Today, Uzbekistan is a member of both the Better Cotton Initiative and the Better Work program, enabling the export of textiles to numerous global partners. Between January and July of this year alone, Uzbekistan exported over $1.7 billion worth of textile products to 85 countries across all continents. By 2026, the country aims to triple its export volume to $6.5 billion, underscoring its commitment to global growth and market expansion. Government support has created favourable conditions for international investors. Kihak Sung, Chairman of Youngone Corporation, shared his company’s success story. Youngone operates two factories in Uzbekistan and is planning further expansion, bringing $55 million in investments and creating over 5,000 jobs. The company hopes to replicate its success in transforming the textile industry in Bangladesh within Uzbekistan. The international textile community has taken notice of Uzbekistan’s prospects. According to Karim Shafei, International Partner at Gherzi Textil Organisation, Uzbekistan has the potential to become a game changer in the global textile industry and value chain. The country benefits from competitive labour costs, a favourable investment climate, a strategic geographical position, and effective government support. In a dedicated report titled ‘Is Uzbekistan the Next Textile Giant?’, Gherzi examines both the advantages and challenges Uzbekistan faces on its path to becoming a significant player in international textiles. We are honoured to host the ITMF Annual Conference and IAF Fashion Convention 2024 in Uzbekistan. This unique platform allows us to showcase our latest developments and achievements while gaining the trust of the international community,” said Mirmukhsin Sultanov, Acting Chairman of Uztextileprom. “Uzbekistan’s textile story is deeply rooted in history, dating back to the ancient Silk Road when we became a central hub for textile trade and craftsmanship. Today, we continue that tradition through reform and modernization, embracing technology, innovation, and sustainability. The textile industry is a major driver of our national economy.” Sultanov added: "From the introduction of cotton processing by the Chinese in 2000 BC to today’s conference, we have achieved remarkable milestones. As we aim for our ambitious $10 billion export target by 2030, we are confident that even greater successes lie ahead as we expand further into global markets." The ITMF Annual Conference and IAF Fashion Convention 2024 is a is one of the major international events in the textile industry. Themed Innovation, Cooperation, and Regulation — Drivers of the Textile and Apparel Industry, the conference brought together over 500 professionals in Samarkand to discuss the future of textiles, explore cutting-edge innovations, and expand global partnerships. The International Textile Manufacturers Federation (ITMF) is a global trade association representing the interests of textile manufacturers. ITMF promotes communication and collaboration among textile manufacturers worldwide, contributing to the growth and sustainable development of the industry. The International Apparel Federation (IAF) is the leading global association of the apparel industry. IAF supports the industry's development through international dialogue and cooperation, addressing key issues and opportunities within the sector.
Source: Vietnam News
Chinese textile giant Sunrise has announced a $422,2 million investment in Morocco. The decision was announced during a meeting in Beijing between Lei Xu, chairman of Sunrise, and Aziz Akhannouch, head of the Moroccan government, who represented King Mohammed VI at the China-Africa Cooperation Forum (FOCAC) summit. Sunrise's investment is expected to create 11.000 direct jobs within three years in several provinces of Morocco. The Moroccan head of government has expressed full support for these projects, considered strategic for the strengthening of the national textile sector. According to the Moroccan news agency “Map”, the investment will “revitalize the national textile sector”, integrated into global value chains, and will contribute to the government's strategy to promote employment. The textile sector is indeed considered a fundamental pillar of the Moroccan economy. In 2022, the Central Bank of Morocco highlighted that the textile industry represents 32,3 percent of national production, well above the global average of 25,6 percent between 2000 and 2019.
Source: Agenzianova
