Synopsis The government extends the RoDTEP scheme benefits for exports from DTA units until September 30, 2025, and for AA/EOU/SEZ units until December 31, 2024. The scheme, aiding substantial export values with tax refunds, has updated rates effective from October 10, 2023, once the ICEGATE portal updates. New Delhi: The government on Monday extended benefits under the RoDTEP scheme for exports made from domestic tariff area (DTA) units for one year till September 30, 2025. The scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the Centre, state, or local level. Launched in January 2021, the scheme was valid till September 30. The Directorate General of Foreign Trade (DGFT) said in a notification that for Advance Authorisation (AA) holders, Export Oriented Units (EOUs) and Special Economic Zones (SEZs), the scheme is extended till December 31 this year. "The RoDTEP scheme is being extended for exports made from DTA units till September 30, 2025, and AA/EOU/SEZ units till December 31, 2024," it said. The Directorate General of Foreign Trade (DGFT) said in a notification that for Advance Authorisation (AA) holders, Export Oriented Units (EOUs) and Special Economic Zones (SEZs), the scheme is extended till December 31 this year. "The RoDTEP scheme is being extended for exports made from DTA units till September 30, 2025, and AA/EOU/SEZ units till December 31, 2024," it said. The revised rates under the scheme were also notified for implementation with effect from October 10 this year, once the ICEGATE portal gets updated with new rates, it added. The rates are revised downwards so that the outgo remains within the budgetary allocation. The new rates of refund of taxes range from 0.3 per cent to 3.9 per cent, lower than the 0.5 per cent to 4.3 per cent that prevailed before the latest extension. "In order to adhere to the budgetary framework as provided in FTP (foreign trade policy) 2023, so that the outgo remains within the approved budget of the Scheme, necessary changes shall be made to the Scheme benefits, wherever necessary, including revisions or deletions in the eligible RoDTEP export items, rates, per unit value caps and other measures, as and when required," it said. ICEGATE registration is a pre-requisite for filing of all customs-related documents, such as bills of entry, and shipping bills online. In FY23, the scheme supported USD 450 billion worth of exports at the cost of Rs 13,020 crore. In 2021-22 the scheme aided USD 421 billion in exports and cost Rs 12,100 crore. The rate of tax refund under the scheme ranges from 0.5 per cent to 4.3 per cent of the value of the product. Sanjay Budhia, Chairman CII National Committee on EXIM, said the industry welcomes the timely extension of the RoDTEP scheme to exports. He said that this much-needed move will significantly enhance the global competitiveness of Indian exporters by addressing the un-refunded taxes and duties that impact cost structures. "By levelling the playing field for exporters, this decision will also enable greater participation in global value chains and support export growth," Budhai said, adding that this is a positive step. Federation of Indian Export Organisations (FIEO) President Ashwani Kumar said the extension will provide stability to the scheme, helping exporters to finalise new contracts offering the best prices factoring the duty refund flowing for the scheme. "Being an instrument for zero rating of exports, the scheme may be given permanency like other duty neutralisation schemes," Kumar added.
Source: Economic Times
Synopsis India's industrial sector is expanding swiftly, aiming for 9% GDP growth. NITI Aayog CEO B V R Subrahmanyam emphasized manufacturing job growth and surpassing prepandemic employment levels. Key industries like basic metals and motor vehicles drove growth. Maharashtra leads in GVA, with Tamil Nadu and others contributing significantly to manufacturing employment and capital investment. India's industrial sector is growing at a fast pace and the country can now aim to achieve 9 per cent plus economic growth, NITI Aayog CEO B V R Subrahmanyam said on Monday. Addressing a press conference here after release of Annual Survey of Industries (ASI) by Ministry of Statistics and Programme Implementation (MoSPI), Subrahmanyam said India's manufacturing sector has been generating sufficient number of jobs. According to the ASI data, the number of persons employed in manufacturing industries rose 7.5 per cent in 2022-23 to 1.85 crore from 1.72 crore in the previous year. The estimated number of persons engaged in this sector in 2022-23 exceeded the pre-pandemic level (2018-19) by more than 22.14 lakh, a MoSPI statement said adding that at the same time, average emolument also registered an increase over the previous year. "The industrial sector in India is growing fast, it is something people have been unnecessarily criticising," he said. While pointing out that manufacturing growth is broad based and is coming from all sectors, Subrahmanyam said,"India can aim at 9 per cent plus growth." The Reserve Bank of India has revised upwards the GDP growth projection for the current fiscal to 7.2 per cent from 7 per cent on rising private consumption and revival of demand in rural areas. He also observed that a lot of people (rating agencies and multilateral agencies) will be revising India's economic growth rate on the upper side "We have wiped out the effect of Covid," the NITI Aayog CEO said. According to the ASI data, the average emolument per person engaged in this sector had gone up by 6.3 per cent in 2022-23 in comparison to 2021-22. The number of total persons engaged in manufacturing industries increased to 1,84,94,962 in 2022-23 from 1,72,15,350 in 2021-22. The figure was 1,60,89,700 in 2020-21, 1,66,24,291 in 2019-20 and 1,62,80,211 in 2018-19, the ASI data showed. The results show that the Gross Value Added (GVA) grew by 7.3 per cent in current prices in 2022-23 over 2021-22. The increase in input was 24.4 per cent while output grew 21.5 per cent in the sector in 2022-23 over 2021-22. The year 2022-23 witnessed a growth in this sector for majority of economic parameters like invested capital, input, output, GVA, employment and wages and it even surpassed the pre-pandemic level in absolute value terms. The main drivers of this growth in 2022-23 were industries like manufacture of basic metals, coke & refined petroleum products, food products, chemical and chemical products and motor vehicles, it stated. These industries, taken together, contributed about 58 per cent to the total output of the sector and showed output growth of 24.5 per cent and GVA growth of 2.6 per cent in comparison to 2021-22. Among the major states, in terms of GVA, Maharashtra ranked first in 2022-23 followed by Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh. The top five states, taken together contributed more than 54 per cent to the total manufacturing GVA of the country in 2022-23. The top five states employing highest number of persons in this sector were Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Karnataka in ASI 2022- 23. Taken together, these states contributed about 55 per cent to the total manufacturing employment in 2022-23, it stated. The fixed capital also increased to Rs 41,21,794.58 crore in 2022-23 from Rs 37,26,354.44 crore in 2021-22. The invested capital rose to Rs 61,39,212.55 crore from Rs 55,44,931.75 crore in 2021-22.
Source: Economic Times
India should accept the withdrawal of benefits under the US generalised system of preferences (GSP) scheme and avoid pushing for its reinstatement as the benefits for domestic exporters were marginal, think tank GTRI said on Monday. It also suggested that India should not seeks the resumption of the scheme in the upcoming India-US Commercial Dialogue on October 2. Commerce and Industry Minister Piyush Goyal is visiting Washington for the dialogue. He will co-chair the meeting with US Secretary of Commerce Gina Raimondo with participation from industries, startups, and SMEs from both countries. The scheme, it added, is primarily designed for low-income countries, with even major economies like China excluded. As a growing economic power, India should focus on broader, more strategic trade discussions rather than seeking concessions on relatively insignificant issues, it said. GTRI Founder Ajay Srivastava said the primary aim of the dialogue is to strengthen the bilateral commercial partnership, boost investment opportunities, and enhance supply chain resilience. "Given these larger objectives, focusing on reinstating GSP benefits, whose economic impact on India has been minimal, would detract from more significant areas of cooperation. Another important reason is low values of these benefits," he said. The GSP program, initiated by the US in 1974, was designed to grant duty-free access to specific products from developing countries, providing them with a competitive edge in the American market. However, the impact of GSP benefits on India's overall trade was limited. In 2019, only about 16 per cent of India's total exports were destined for the US, and less than 2 per cent of these exports benefited from the GSP scheme, he said. "For every USD 100 worth of Indian goods exported to the US, only 12 per cent entered under the GSP program. Select products from leather, footwear, auto components, and chemicals sectors benefitted, but even in these cases, the advantages were minor compared to the broader scope of India's trade relationship with the US," Srivastava said. He added that at a macro level, the GSP covered less than 1 per cent of the total USD 2.3 trillion in the US imports annually, with the American government foregoing only about USD 1 billion in customs revenue. India was the largest user of the program, accounting for USD 5.7 billion in exports under GSP, but this figure remains negligible in the context of India's overall export portfolio and the broader US trade relationship. "Thus, the GSP's impact on India's export growth was limited," the GTRI said, adding that as a growing global economy, India should pursue strategic agreements and larger negotiations. The United States is India's top trading partner, with bilateral trade surpassing USD 190 billion annually, covering a wide range of products and services. According to the latest data for January to July 2024, India's merchandise exports to the US grew from USD 44.1 billion in the same period of 2023 to USD 48.2 billion in 2024, reflecting a 9.3 per cent increase. In contrast, India's imports from the US declined from USD 25.9 billion to USD 24.6 billion, a 5 per cent decrease. In 2023, the US key exports to India included petroleum crude (USD 7 billion), followed by petroleum oil (USD 6.9 billion). It was followed by LNG exports (USD 1.4 billion), and coal (USD 4 billion). On the other hand, India's exports to America includes textiles, garments, and madeups topped the list. It was followed by medicines, petroleum oil, machinery, and cut and polished diamonds and smartphones.
Source: Economic Times
Synopsis In 2022-23, the manufacturing sector saw a 7.5% increase in employment, reaching 1.85 crore workers, surpassing pre-pandemic levels. Key segments like metals, petroleum, food products, and motor vehicles drove significant output and GVA growth. Top states included Maharashtra, Tamil Nadu, and Gujarat. The number of persons employed in manufacturing industries rose 7.5 per cent in 2022-23 to 1.85 crore from 1.72 crore in the previous year, says Annual Survey ofIndustries (ASI) by Ministry of Statistics and Programme Implementation (MoSPI). The estimated number of persons engaged in this sector in 2022-23 exceeded the pre-pandemic level (2018-19) by more than 22.14 lakh, a MoSPI statement said adding that at the same time, average emolument also registered an increase over the previous year. Also, the average emolument per person engaged in this sector had gone up by 6.3 per cent in 2022-23 in comparison to 2021-22. The number of total persons engaged in manufacturing industries increased to 1,84,94,962 in 2022-23 from 1,72,15,350 in 2021-22. The figure was 1,60,89,700 in 2020-21, 1,66,24,291 in 2019-20 and 1,62,80,211 in 2018-19, the ASI data showed. The results show that the Gross Value Added (GVA) grew by 7.3 per cent in current prices in 2022-23 over 2021-22. The increase in input was 24.4 per cent while output grew 21.5 per cent in the sector in 2022-23 over 2021-22. The year 2022-23 witnessed a growth in this sector for majority of economic parameters like invested capital, input, output, GVA, employment and wages and it even surpassed the pre-pandemic level in absolute value terms. The main drivers of this growth in 2022-23 were industries like manufacture of basic metals, coke & refined petroleum products, food products, chemical and chemical products and motor vehicles, it stated. These industries, taken together, contributed about 58 per cent to the total output of the sector and showed output growth of 24.5 per cent and GVA growth of 2.6 per cent in comparison to 2021-22 Among the major states, in terms of GVA, Maharashtra ranked first in 2022-23 followed by Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh. The top five states, taken together contributed more than 54 per cent to the total manufacturing GVA of the country in 2022-23. The top five states employing highest number of persons in this sector were Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Karnataka in ASI 2022- 23. Taken together, these states contributed about 55 per cent to the total manufacturing employment in 2022-23, it stated. The fixed capital also increased to Rs 41,21,794.58 crore in 2022-23 from Rs 37,26,354.44 crore in 2021-22. The invested capital rose to Rs 61,39,212.55 crore from Rs 55,44,931.75 crore in 2021-22. The field work for this survey was carried out during November 2023 to June 2024 for ASI 2022-23.
Source: Economic Times
Synopsis Prime Minister Narendra Modi has urged citizens to use 'Made in India' products during the festive season, highlighting the success of the 'Make in India' initiative. The appeal has led to a significant shift from Chinese goods to local products, reflecting in festive sales and reducing India's trade deficit with China. In his monthly ‘Mann ki Baat’ address, Prime Minister Narendra Modi has appealed to the people to use ‘Made in India’ products during the ongoing festive season. Starting with Ganesh Chaturthi, the festive season will last nearly two months and include Navratri, Dussehra, Diwali and Chhath. This is the time when cheap Made-inChina goods flood Indian market. PM Modi has asked people to buy not just earthen lamps. "Merely buying earthen lamps is not ‘Vocalfor Local'. You should promote local products made in your area more and more. Any such product, that has been made with the sweat of an Indian artisan, that is made on Indian soil, is our pride –– we always have to lend glory to this pride,” he said. Despite complex trade relations between India and China, people have started buying more Made-in-India goods during festive season. PM Modi referred to the completion of a decade of the ‘Make in India’ initiative where all segments, from big industries to small shopkeepers have made a contribution to its success. This has started to reflect in festive sales On Rakhi festival this year, The Confederation of All India Traders (CAIT) stated that customers preferred indigenous Rakhis over Chinese ones. "For several years now, only indigenous Rakhis have been sold in the country, and this year too, there was neither demand for nor any presence of Chinese Rakhis in the market," the CAIT said in a note. Last Diwali, Made-in-India decorative lights gave competition to Chinese products that dominated the market for the past several years. According to dealers, Chinese products had been popular because of innovation and low cost compared to Indian products. Though a variety of imported Chinese lights flooded the market last Diwali, many customers were buying Indian decorative lights as they are more durable and require less maintenance. The pipe light strings, battery-operated diya light, LED light chandeliers, flower light, special golden light for temple decoration and LED ‘kalash’ light were some of the popular items. “Reputed Indian companies too have launched fancy lights fashioned like the Chinese variants and though they are expensive, people are buying them as they last longer,” a trader had told TOI last year.
Retail markets across India registered a record trade of Rs 3.75 lakh crore during Diwali season last year, traders' body CAIT had said. CAIT Secretary General Praveen Khandelwal said Chinese goods lost a trade worth more than Rs 1 lakh crore during the Diwali festive season. "In previous years, Chinese products were occupying nearly 70 per cent market of Diwali festivals. However, this year, appeal of Prime Minister Narendra Modi to make this Diwali vocal for local has gone down well and widely accepted and implemented by both traders and consumers," he said. India's narrowing trade deficit with China India has recorded trade surplus with 151 countries such as the US and Netherlands, while the country has a trade deficit with 75 nations, biggest among whom is China, as per think tank Global Trade Research Initiative (GTRI) At the World Trade Organization (WTO) Trade Policy Review of China in July, India raised concern over its large trade deficit with China and the nontransparent subsidies and mechanisms followed by the latter, which it said lead to low prices and hurt the local industry totalled $101.75 billion, leaving a trade deficit of $85.08 billion, higher than $83.19 billion in 2022. China emerged as India's largest trading partner in FY24 with $118.4 billion two-way commerce, narrowly edging past the US, which was the top trading partner of India during 2021-22 and 2022-23. According to the Commerce Ministry data, China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner. India has the highest trade deficit with China in goods but the gap expanded at a lower pace during 2014-15 to 2023-24 as compared to the previous 10 years, Commerce and Industry Minister Piyush Goyal said in July. In a written reply to a question in the Rajya Sabha, the minister said that the trade deficit has increased by compound annual growth rate (CAGR) of 42.85 per cent during 2004-05 to 2013-14, while the same has come down to 6.45 per cent during 2014-15 to 2023-24 which clearly indicates the success of the government in containing rate of growth of excessive import growth from China during the past 10 years. From 2004-05 to 2013-14, trade deficit grew by approximately 24.8 times while it grew only by 1.75 times from 2014-15 to 2023-24, he said. While increasing imports of goods such as umbrellas, toys, certain fabrics, and musical instruments are severely hurting MSMEs as many of these products are also made by domestic businesses, India's main dependence on China is for capital and intermediate goods demand for which has risen due to a spurt in domestic manufacturing of finished goods. Most of the goods India imports from China are capital and intermediate goods and raw materials like Active Pharmaceutical Ingredients, auto components, electronic parts and assemblies and mobile phone parts. These are used for making finished products which are also exported out of India. As sectors such as electronics, pharma, telecom and power expand and the government encourages local manufacturing of finished goods, the demand for Chinese intermediate goods and raw materials does not slacken much. India can cut down its reliance on Chinese imports as Indian manufacturing deepens further and the country builds a whole manufacturing ecosystem including capital and intermediate goods and raw materials.
Source: Economic Times
The US has retained its position as India’s top trading partner in the January-July 2024 period with bilateral goods trade surpassing $72 billion and Indian exports growing 9.3 per cent to $48.2 billion. Top export items from India to the US in this period included garments & textiles, pharmaceuticals, precious and semi-precious stones, smart phones and mineral fuels. On the other hand, India’s imports from the US fell from $25.9 billion to $24.6 billion, a 5 per cent decline in the first seven months of 2024, per government figures.
Exports up “India’s merchandise exports to the US grew substantially from $54.3 billion in 2018 to $83.8 billion in 2023, marking a 54.4 per cent increase. This indicates a strong demand for Indian goods in the US market. In the services sector too, India’s exports to the US experienced a notable increase of 25.6 per cent in the period, rising from $28.9 billion in 2018 to $36.3 billion in 2023,” per an analysis by the Delhi-based research body, Global Trade and Research Initiative (GTRI). Combining both merchandise and services, India’s total exports to the US surged from $83.2 billion in 2018 to $120.1 billion in 2023, registering an overall increase of 44.3 per cent. The US’ decision to withdraw the Generalised System of Preferences (GSP) scheme for Indian exporters from 2019 has had minimal economic impact on India and there may not be a need for the government to prioritise its restoration, Ajay Srivastava, Founder, GTRI said. Exporters of certain labour-intensive items to the US were given duty free/ lower duty market access under the scheme. “India was the largest user of the program, accounting for $5.7 billion in exports under GSP, but this figure remains negligible in the context of India’s overall export portfolio and the broader US trade relationship. Thus, the GSP’s impact on India’s export growth was limited,” Srivastava said. Import sectors India’s imports from the US in January-July 2024 was spread across a number of sectors with minerals fuels at the top followed by precious and semi-precious stones, mechanical and electrical machinery, aircraft & parts, ships & boats, chemicals & pharmaceuticals and edible fruits & nuts. The trade potential between India and the United States remains vast, driven by their growing economic ties and complementary markets, the GTRI report stated. The US presents a significant market for Indian goods, particularly in sectors like technology, pharmaceuticals, textiles, and engineering products. Likewise, India’s increasing demand for advanced technology, energy, and capital goods from the US opens avenues for expanding bilateral trade. “With both countries working to strengthen their strategic partnership, particularly in areas like defence, clean energy and digital trade, there is substantial potential to further enhance trade volumes, making the bilateral relationship a key driver of economic growth for both nations,” it noted.
Source: The Hindu
Union Minister of Commerce and Industry, Piyush Goyal, on Monday, said that the "Make in India" initiative has significantly contributed to the positive trends reflected in the latest gross value added (GVA) figures. When asked about Make in India's contribution, Goyal told ANI, "I think it's huge because this annual survey of industries reflects the growth in the manufacturing sector. The fact that we have surpassed pre-pandemic levels now, the way the growth continues in a sustained manner in basic metals, coke and refined petroleum products, food production, chemical and chemical production-based industries, and motor vehicles, demonstrates that India is a combination of manufacturing and consumption-led growth. In other parts of the developed world, the growth is consumption-led." The Union Minister also noted that the GVA data, which shows a 7.5 per cent increase in manufacturing employment in 2022-23 over the previous year, and a 6.3 per cent rise in average emoluments, serves as a powerful testament to the success of the Make in India initiative. When asked what the latest GVA data reveals about India's overall economic growth, Goyal stated, "It is a matter of great satisfaction that as we celebrate ten years of the Make in India programme, launched on September 25, 2014, India is emerging as a global manufacturing and export hub. Overall, we have a very strong macroeconomic fundamentals, economic activity, job creation, and domestic value addition, all of these factors have been on the rise and the fact that gross value addition (GVA) numbers are up by 7.3 per cent over the financial year 2022 which is a great signal that the India success story is going from strength to strength." Goyal further remarked that the world is increasingly viewing India as a manufacturing hub. "Our focus on innovation, our focus on skill development--it's been a whole of the government approach and when the states and centre work together you can see the transformational impact it has on the economy," he added. When asked about what the latest GVA numbers suggest regarding the future trajectory of India's economy, Goyal emphasised that global recognition of India's economic strength is growing. Goyal further remarked that the world is increasingly viewing India as a manufacturing hub. "Our focus on innovation, our focus on skill development--it's been a whole of the government approach and when the states and centre work together you can see the transformational impact it has on the economy," he added. When asked about what the latest GVA numbers suggest regarding the future trajectory of India's economy, Goyal emphasised that global recognition of India's economic strength is growing. "It is widely expected that for the next many years, possibly a few decades, India will continue to sustain this growth momentum. The resilience of the economy is strong. Inflation is below the RBI-mandated number. Foreign exchange reserves are touching USD700 billion. We are the fourth largest in the world and now the time has come for seeing softer interest rates. Also, we have all the ingredients of a strong macroeconomic foundation on which both manufacturing and the service sector will grow, leading to faster growth of exports, leading to greater job employment numbers. We already have seen a 7.5 per cent growth in manufacturing employment. In the service sector also, the growth could be even more than this. Investors are queuing up to come to India. The future is bright for every young child, every young man and woman born in India," Goyal highlighted. Manufacturing Gross Value Added (GVA) of the country grew robust 7.3 per cent in 2022-23 at Rs 21.97 lakh crore (Rs 20.47 lakh crore), the latest Annual Survey of Industries (ASI) released showed. As per the ASI report, industrial output for 2022-23 grew more than 21 per cent. Total employment in the manufacturing sector showed a robust growth of 7.4 per cent in 2022-23 over the previous year. Meanwhile, on being asked what initiatives are being taken to further improve productivity and efficiency in the manufacturing sector, Goyal said, "Prime Minister Modi has just launched the two lakh crore rupee programmes, the five schemes, PM schemes to promote jobs for our young men and women. To encourage skill development in a big way, he has recently approved twelve new smart cities and industrial townships." He added, "There will be social, physical and innovation infrastructure. There will be a single window clearance for all promotional and manufacturing activities. The whole of the government's approach for ease of doing business and the promotion of innovation and research and development coupled with high-quality education and skills is Prime Minister Modi's focus to make India a manufacturing powerhouse.
Source: Business Standard
The United Arab Emirates (UAE) has expressed a great interest in investing in Chittagong Port, underlining the possibility of mutual financial benefits for both countries. The UAE Ambassador to Bangladesh, Abdullah Ali Al Hamoudi, expressed this desire at a meeting with Brigadier General (retd) M Sakhawat Hossain, the Adviser for Textiles, Jute, and Shipping, at the Secretariat on Sunday. Ambassador Al Hamoudi expressed the UAE’s opinion that investments in Bangladesh, particularly at Chittagong port, will benefit both countries. He said that DP World, a Dubai-based multinational logistics organisation, is now managing seaports in over 60 countries, with extensive expertise on large projects such as the London Gateway Port and operations in Indian, Pakistani, and Sri Lankan ports.
Adviser Sakhawat welcomed the UAE’s investment proposal and emphasised Bangladesh’s commitment to encouraging foreign investment, which he characterised as a critical component of the country’s multifaceted relationship with the UAE, spanning a variety of sectors like as trade and commerce. During the discussion, the adviser asked the UAE ambassador to make it simpler for Bangladeshi sailors to obtain transit visas. The ambassador told him that he would treat this situation seriously. Furthermore, Sakhawat urged the UAE envoy to look into investment prospects in Bangladesh’s jute and textile industries, citing rising global demand for ecologically friendly jute goods. He emphasised the growing trend of international investment in these industries and urged the UAE to consider them as profitable investment opportunities. Several important officials, including Additional Secretary of the Ministry of Shipping Sanjoy Kumar Banik and Secretary of Jute and Textiles M Abdur Rauf, attended the meeting, which featured a five-member team from the United Arab Emirates.
Source: Apparel Resource
Hanoi (VNA) – Vietnam has so far attracted 3,500 foreign direct investment (FDI) projects in the garment - textile industry with a combined value of 37 billion USD, according to the Vietnam Textile and Apparel Association (VITAS). The FDI area plays a crucial role in the industry’s growth, accounting for 65% of its total export turnover. According to VITAS, Vietnam’s textile and garment industry is witnessing a strong surge in FDI inflows, with many large corporations pouring money into building modern factories. The countries and territories investing big in Vietnam in this field include the Republic of Korea (RoK), China, Japan, India and Taiwan (China). In late September, Sanbang Co., Ltd of Singapore began construction of its plant of towels, fabrics, DTY yarn at Rang Dong Textile Industry Park in the northern province of Nam Dinh with a total investment of 673.5 billion VND (nearly 30 million USD). Covering an area of 103.400 sq.m, the plant is expected to officially become operational in the fourth quarter of 2025, generating many jobs for local labourers. Besides, several other major projects are underway, including a textile dyeing factory worth 203 million USD invested by Top Textiles Co., Ltd of Japan’s Toray Group at the park.
In February this year, the provincial authorities granted an investment license for Crystal International Group Limited Group of Hong Kong (China) to develop the Yi Da Denim Mill Co., Ltd with a total investment of nearly 1.47 trillion VND (about 60 million USD). Meanwhile, SAB Industrial (Vietnam) Company Limited of Weixing Group inaugurated a 6-million-USD plant producing clothing accessories in the Bim Son Industry Park in the northern central province of Thanh Hoa in March. Vietnam’s participation in free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU – Vietnam FTA (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), also helps the country expand export markets for textile and garment products. According to VITAS General Secretary Truong Van Cam, thanks to international integration efforts and effective foreign investment attraction strategies, the textile industry has become attractive for foreign investors, thus helping to improve production capacity and export scale. Experts said that Vietnam should seeks ways to promote linkage between FDI enterprises and domestic ones to further develop the textile and garment support industry. Attention should be paid to building technical standards and regulations related environmental protection and energy saving, thus creating a solid foundation for sustainable development of the industry, they stressed.
Vietnam is the third largest textile exporter in the world, after China and Bangladesh. Positive signals in 2024 show that the industry's export turnover is likely to exceed the target of 44 billion USD this year.
Source: Vietnam Plus
Today, China is a diversified economic giant with robust industries ranging from textiles and machinery to consumer electronics and renewable energy
China’s journey from an agrarian economy to the world’s second-largest economic powerhouse is a story of strategic reforms, determination, and the ability to adapt to global trends. Since 1978, when the Chinese government, under Deng Xiaoping, initiated sweeping economic reforms, the country has transformed from a low-income nation into an upper-middle-income economy, averaging a GDP growth rate of 9.5% over four decades. These reforms were designed to open the Chinese economy to the world by encouraging private enterprise, foreign trade, and investment. One of the key moves was the establishment of Special Economic Zones (SEZs), such as those in Shenzhen, which attracted foreign companies with tax incentives and relaxed regulations. This strategy helped boost exports and fueled rapid industrialisation, urbanisation, and growth, enabling China to lift more than 800 million people out of poverty.
Today, China is a diversified economic giant with robust industries ranging from textiles and machinery to consumer electronics and renewable energy. Its industrial sector contributes nearly 39% to the country’s GDP, making it a global leader in manufacturing. China’s dominance in industries like electronics, with companies such as Huawei and Xiaomi, has allowed it to remain a key player in global supply chains. In fact, China currently ranks first in the world for manufacturing output, contributing nearly 30% of global manufacturing. Its machinery, processed food, and textile industries are among the largest in the world. However, this growth hasn’t come without challenges. Heavy reliance on fossil fuels to support industrial expansion has led to environmental degradation, prompting China to pivot towards more sustainable energy sources.
Recognising the long-term importance of sustainability, China is increasingly focused on transitioning to a green economy. This has been reflected in its significant investments in renewable energy. As of 2022, China became the largest producer of solar energy, with an installed capacity of 392 GW. The country has also made substantial investments in wind and hydropower, leading global efforts to combat climate change. In line with its carbon-neutrality goal by 2060, China invested $546 billion in renewable energy projects from 2010 to 2020, signaling a major shift from its earlier reliance on coal and other fossil fuels. Mining remains an essential industry, but cleaner energy sources are gradually taking precedence. China’s goal of reducing its dependence on coal aligns with its broader commitment to sustainability under its 14th Five-Year Plan (2021-2025), which emphasises green development, innovation, and self-sufficiency in critical technologies. China’s Five-Year Plans are strategic blueprints that guide the country’s economic, technological, and social development. They set targets for industrial modernisation, innovation, and sustainable growth while ensuring flexibility to adapt to global changes. These plans have been instrumental in driving China’s rapid transformation and long-term economic vision. Driving China’s economic future is a steadfast commitment to technological innovation. The "Made in China 2025" initiative is a testament to this vision, aiming to bolster high-tech manufacturing in sectors such as robotics, aerospace, and clean energy vehicles. The plan seeks to reduce China’s reliance on foreign technologies and position it as a leader in advanced manufacturing. Additionally, China has made massive strides in artificial intelligence (AI), leading the world in AI patent filings and producing around 30% of global AI research. In 2022, China’s AI industry was valued at $22 billion, with applications spanning from autonomous driving to advanced facial recognition technology. Furthermore, China’s investment in research and development (R&D) reflect s its ambition to be at the forefront of technological revolutions. In 2022, it allocated $450 billion to R&D, accounting for 2.55% of its GDP, which positioned China as the second-largest investor in R&D globally, behind only the United States. While China has excelled in developing cutting-edge technologies, the country’s broader economic indicators also reveal its standing in the global economy. According to the World Bank, China’s GDP reached $17.73 trillion in 2022, making it the second-largest economy after the United States. However, the International Monetary Fund (IMF) reports that China’s GDP per capita remains lower than in many advanced economies, at approximately $12,970 in 2022. Despite this, China’s economic growth has remained robust, especially as it recovers from the impact of the COVID-19 pandemic. In 2022, China’s economy grew by 3%, rebounding from a period of lockdowns and strict restrictions. The IMF projects that China’s GDP will grow by around 5% annually by 2024, reflecting a shift from the double-digit growth seen in the earlier years of its expansion.One of the most promising areas of China’s recent economic development is its leadership in the new energy vehicle (NEV) sector. By 2023, China accounted for over 50% of global NEV sales, producing more than 4 million electric and hybrid vehicles. Government subsidies, combined with growing consumer demand for environmentally friendly options, have allowed China to dominate this fast-growing market. Additionally, Chinese companies such as CATL are leading global production of electric vehicle batteries, ensuring China’s continued dominance in the clean energy sector. China’s commitment to renewable energy and sustainable transport aligns with its goal of reducing emissions and achieving a greener economy. Moreover, China’s position in the global economy is further solidified through international initiatives like the Belt and Road Initiative (BRI). By investing in infrastructure projects across Asia, Africa, and Europe, China has expanded its influence and strengthened economic ties with developing countries. This initiative also complements China’s domestic goals by creating new markets for Chinese goods and services, while promoting the export of Chinese technologies in renewable energy and infrastructure. The BRI highlights China’s ability to blend domestic ambitions with international leadership, further entrenching its role as a global economic force.
As China moves forward, it is focused on creating a more balanced economy. The government has emphasised the need for more consumption-driven growth to reduce dependence on exports and investments. This strategy is particularly relevant as China aims to avoid the "middle-income trap" and transition to a high-income nation. The shift toward domestic consumption, alongside advancements in technology and sustainability, are expected to reshape China’s economic model over the coming decades. Looking at the broader global picture, China’s economic influence is undisputed. In 2022, it ranked second on the Global Competitiveness Index, reflecting its strong manufacturing base, technological advancements, and robust infrastructure. While the World Bank and IMF highlight the challenges China faces, including income inequality and an aging population, they also acknowledge the country’s resilience and potential for continued growth. As the world’s largest exporter and a leading investor in renewable energy, China’s economic trajectory is closely watched by global markets. As China continues to adapt to global challenges and opportunities, it is not only shaping its own future but also leaving an indelible mark on the global economic landscape. Its vision for the future, underpinned by technological leadership and a commitment to green development, will likely ensure that China remains a formidable force in the world economy for decades to come.
Source: The International News
LAHORE: The All Pakistan Textile Mills Association’s (APTMA) Patron-in-Chief Gohar Ejaz described the IMF package as an opportunity for Pakistan to implement institutional reforms and significantly reduce electricity tariffs and interest rates at a press conference at the APTMA House, Lahore. During the event, Ejaz and members from along with the newly elected Punjab body said that increasing exports is key to tackling poverty, unemployment and inflation.Gohar, while congratulating the newly elected officials of APTMA, noted that the inflation rate has been controlled and we have reached ground zero. “Now, we have to take off from here. Our textile industry has the capacity to generate $36 billion annually, and we must ensure the provision of electricity at nine cents at all costs,” he said. Chairperson of APTMA Punjab Kamran Arshad added that the IMF programme is likely to be beneficial for economic recovery. “If given facilitation, the APTMA will bring foreign exchange into the country.” APTMA leaders congratulated the army chief and the prime minister for securing the IMF programme, asserting that industries should operate, not shut down. “The next three years will be years of development for Pakistan.” APTMA leaders highlighted that textile exports currently stand at $16 billion, with $10 billion coming from APTMA members. They revealed that 80 per cent of value-added products fall within textiles, adding that if garments and fabrics are produced from exported yarn, an additional $10 billion in exports could be achieved. They claimed that exports could reach $30-36 billion annually if electricity rates are reduced to nine cents. They also called for further reductions in interest rates and urged independent power producers (IPPs) to forgo capacity charges.The leaders said that exports could increase by $6 billion, potentially reaching $36 billion in a single year, helping the country eliminate costly short-term foreign loans. Gohar also supported the army chief’s remarks about the need to curb theft. Finally, he stressed the importance of systemic reforms and corrections to the economic agenda to ensure sustainable growth.
Source: The International News
