Chennai, with a new textile policy on the horizon, people associated with the Tamil Nadu textile industry have appealed to the state government for support in modernising existing powerloom units. Tamil Nadu textile industry stakeholders informed that traditional powerlooms require investment in new machinery or retrofitting to stay competitive. The textile sector has also requested the state government to address challenges with Common Effluent Treatment Plants, particularly in managing and disposing of sludge generated from effluent treatment. Recently, the Tamil Nadu Department of Handlooms, Handicrafts, Textiles, and Khadi conducted discussions with state textile industry associations in Chennai. A department official said that several rounds of talks have taken place with industry stakeholders, and the new textile policy is expected to be announced soon. He said that the policy will be updated to better reflect the current needs of the industry and build upon the 2019 textile policy. The new policy aims to support units with less than Rs 50 crore in turnover in the man-made fibre (MMF) sector. In addition, the state has issued orders to establish 10 mini textile parks. An integrated textile park near Salem, once approved by the Central government, is expected to provide solutions for processing industries in the region. Notably, Tamil Nadu accounts for one-third of India’s textile business and is one of the largest textile manufacturing hubs globally. The industry has generated employment for millions, including workers from other states. Earlier this year, R. Gandhi, Minister of Handlooms and Textiles, presented a policy note for the handlooms, handicrafts, textiles, and khadi sectors, outlining numerous benefits for the industry. The new textile policy also seeks to bolster Tiruppur’s position in the apparel value chain. Tiruppur, known for its Rs 35,000 crore export business and Rs 25,000 crore in domestic trade, is expected to lead the way in Environmental and Social Governance (ESG) practices, attracting further investments. The garment sector workforce in Tiruppur is predominantly composed of women, making up 80 per cent of its employees. Industry stakeholders raised concerns over rising electricity costs, with textile units currently paying around Rs 9.5 per unit, a significant factor impacting operational costs. Associations in Coimbatore and Tiruppur have urged the state to support the region’s struggling mills, with S.K. Sundararaman, Chairman of the Southern India Mills’ Association, noting that only 60 per cent of textile mills in Tamil Nadu are presently operational. Sundararaman emphasised that investment-friendly policies in states like Gujarat, Maharashtra, and Madhya Pradesh are drawing businesses away, warning that without timely intervention, Tamil Nadu’s textile sector could face a severe downturn.
Source: Daiji World
Synopsis Sanathan Textiles received the nod from Sebi for its Rs 800 crore IPO. The company is one of the few with a presence across polyester, cotton, and technical textile sectors. The IPO comprises a fresh issue of Rs 500 crore and an offer for sale of Rs 300 crore by promoters. Mumbai-based Sanathan Textiles has received the nod from Securities and Exchange Board of India (SEBI) to raise Rs 800 crore through an initial public offering (IPO). The company had refiled its IPO papers with Sebi on August 20, 2024. The company is one of the few in India having a presence across the polyester, cotton, and technical textile sectors The IPO with a face value of Rs 10 comprises fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale of up to Rs 300 crore by Promoters and Promoter Group. The offer for sale consists of the sale of equity shares of up to Rs 61.87 crore by Paresh Vrajlal Dattani, Rs 69.35 crore by Ajay Vallabhdas Dattani, Rs 71.12 crore by Anilkumar Vrajdas Dattani, Rs 74.37 crore by Dinesh Vrajdas Dattani, Rs 50 Lakh by Vajubhai Investments. It also consists of Rs 50 Lakh by Vallabhdas Dattani HUF, Rs 4.5 crore by Sonali Ajaykumar Dattani, Rs 50 Lakh by Dattani Dineshkumar Vrajdas HUF, Rs 7 crore by Beena Paresh Dattani, Rs 3.5 crore by Anilkumar Vrajdas Dattani HUF, Rs 6 crore by Paresh Kumar V Dattani HUF, Rs 25 Lakh by Jayshree Anilkumar Dattani, Rs 2.5 Lakh by Ajay Kumar V Dattani HUF, and Rs 50 Lakh by Vallabhdas Dattani Proceeds from the fresh issue of shares will be used to the extent of Rs 160 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings availed by the company, Rs 215 crore for investment in its subsidiary viz. Sanathan Polycot for funding its long-term working capital requirements besides general corporate purposes. Sanathan Textiles operates three distinct yarn business divisions: Polyester yarns, cotton yarns, and yarns for technical textiles and industrial applications. These divisions are currently managed under a single corporate entity. The company specializes in value-added yarn products, including dope-dyed, superfine/micro, functional, industrial, and technical yarns, as well as cationic dyeable and specialty yarns. These products result from extensive in-house research efforts. For fiscal ended March 31, 2024, value added products sold as a % of total products sold stood at 51.9%. Additionally, in FY22 it has also started its sustainable textile initiative under the brand Sanathan Rivero where it recycles waste plastic bottles and converts them into yarns for fabrics. As of June 30, 2024, Sanathan Textiles had developed over 2,800 active varieties of yarn products and maintained more than 30,000 stock-keeping units (SKUs). The company's manufacturing capabilities encompass a diversified product range of over 14,000 yarn varieties and more than 190,000 SKUs, serving various end uses. In terms of customer reach, the company served 1,571 customers during the fiscal year ending March 31, 2024, and 1,684 customers during Fiscal 2023. Dam Capital Advisors and ICICI Securities are the book-running lead managers and KFin Technologies is the registrar of the issue. The equity shares are proposed to be listed on BSE and NSE.
Source: Economic Times
Synopsis Indian exporters may face higher tariffs on goods like textiles and pharmaceuticals as Donald Trump's 'America First' agenda prioritizes protectionist measures. While this could negatively impact key Indian exports, a tougher stance on China might open new opportunities. With Donald Trump all set to become US president, Indian exporters may face high customs duties for goods like automobiles, textiles and pharmaceuticals if the new US administration decides to pursue the 'America First' agenda, opined trade experts. Experts also said that Trump could also tighten H-1B visa rules, impacting costs and growth for Indian IT firms.
Over 80 per cent of India's IT export earnings come from the US, making it vulnerable to changes in visa policies. The US is India's largest trading partner, accounting for over USD 190 billion of annual trade. Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said that Trump may extend tariffs beyond China to include India and other countries. Trump had earlier called India a "large tariff abuser" and in October 2020 labelled India as the 'tariff king'. These remarks suggest that Trump's second term could bring tougher trade negotiations. he said. "His America First agenda would likely push for protective measures, such as reciprocal tariffs on Indian goods, potentially adding barriers for key Indian exports like automobiles, wines, textiles, and pharmaceuticals. These increases could make Indian products less competitive in the US, impacting revenue in these sectors," Srivastava said. However, a tougher US stance on China could create new opportunities for Indian exporters, he added. The bilateral trade in goods between the two countries stood at USD 120 billion in 2023-24 as against USD 129.4 billion in 2022-23. A GTRI report had earlier stated that according to WTO's World Tariff Profiles 2023, the US also imposes high duties on items like dairy products (188 per cent), Fruits and vegetables (132 per cent), cereals and food preparations (193 per cent), oilseeds, fats and oils (164 per cent), beverages and tobacco (150 per cent). International trade expert Biswajit Dhar said that Trump would increase tariffs in various sectors as he has to follow his call for MAGA (Make America Great Again). "With Trump coming to power, we are going to enter a different era of protectionism," Dhar said adding sectors like electronics may get a hit. He added that as earlier Trump has walked out of Trans-Pacific Partnership (TPP), there could be dark clouds on IPEF (Indo-Pacific Economic Framework for Prosperity). The 14-nation bloc was launched in Tokyo by the US and other Indo-Pacific countries on May 23, 2022 "Let us see what he does with IPEF," Dhar cautioned and added that nothing is expected to move in the World Trade Organisation (WTO). Federation of Indian Export Organisations (FIEO) DG Ajay Sahai said that "we could expect Mr Trump to push for more balanced trade. But trade disputes might arise around tariffs". Going by the increasing trend of protectionism, Sahai said, the same would continue with tighter immigration rules. Agneshwar Sen, Partner-Tax and Economic Policy (International Trade), EY India said it may be expected that the US will use high tariffs strategically to onshore manufacturing and change current supply chains. India could face higher tariffs on exports like textiles, chemicals, pharma and auto/ engineering products, Sen said. "India would have to either seek alternative markets (which will be difficult) or retaliate with its own tariffs on US exports. Alternately, we must be ready for a trade deal that is attractive to the US while not just protecting our current interests but creating newer ones," he added. Further Srivastava said that Trump has expressed concerns about outsourcing, and while some statements may be campaign rhetoric, India should prepare for possible measures affecting IT exports. H-1B visa policies are crucial for the movement of skilled professionals, especially from India's IT sector. "Trump's stricter immigration stance could lead to changes in visa rules, impacting Indian IT professionals and raising costs for Indian IT companies," the GTRI Founder said. However, he added that Trump is expected to ease labour and environmental standards, which could make it easier for Indian exports to enter the US market. "Trump would likely push India to align closely with US geopolitical aims, potentially expanding India's role as an alternative supplier in sectors like electronics and pharmaceuticals but potentially limiting India's foreign policy flexibility," he said. Likewise, India's increasing demand for advanced technology, energy, and capital goods from the US opens avenues for expanding bilateral trade. Between FY'2020 and FY'2024, India's merchandise exports to America rose by 46 per cent from USD 53.1 billion to USD 77.5 billion. Imports from the US also grew to USD 42.2 billion last fiscal from USD 35.8 billion in 2019-20. On the other hand, trade in services between the two nations expanded from USD 54.1 billion in 2018 to an estimated USD 70.5 billion in 2024, a 30.3 rise. India is also a key destination for American businesses such as professional, scientific, and technical services, manufacturing, and IT. Washington is the third largest investor. India received USD 66.7 billion between April 2000 and June 2024. India buys military equipment and Boeings worth billions of dollars from the US and conducts its over 90 per cent global trade in US Dollars. "The US firms like Google, Facebook gather Terabytes of data every day and earn billions of advertising dollars every year from India. Amazon which had to withdraw from China, is the biggest online retailer in India. The US earns dollars from India from various engagements and not just trade," Srivastava said.
Source: Economic Times
Synopsis A top Indian government official urged India to join the RCEP and CPTPP trade blocs to boost manufacturing and exports. He argued that India missed out on opportunities from companies seeking to diversify supply chains beyond China due to high tariffs. India should join the Regional Comprehensive Economic Partnership (RCEP), a top official at a government think tank said on Thursday, years after the country decided to walk out of the China backed Asian trade bloc. The RCEP is the world's largest trade bloc backed by China and groups 15 Asia Pacific economies, including Australia, Japan, New Zealand and the 10 member-states of the Association of Southeast Asian Nations (ASEAN). In 2019, India decided to not join the bloc, on the grounds that the deal would hurt its farmers, businesses, workers and consumers. "India should be a part of RCEP and CPTPP and become a member," said B V R Subrahmanyam, the CEO of NITI Aayog, a public policy think tank for the government. He said that joining the trade blocs will help India boost its manufacturing base and exports by small and medium firms that constitute 40% of the country's exports. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 countries including Australia, Canada, Chile, Japan, Malaysia, Mexico, New Zealand and Singapore. The CPTPP was signed by the countries in March 2018 and went into effect in December that year. He also said India has not benefited much from global companies' efforts to build factories outside China because of India's high tariffs. In recent years, many companies have adopted a "China Plus One" strategy to build new manufacturing units outside the People's Republic. "I don't think we have captured the China plus one opportunity as much as we could have," he said. "Countries like Vietnam, Indonesia, Malaysia, Turkey, Mexico, have probably benefited more from China plus one than we have." India's goods exports during April-September 2024 rose by 1.02% from a year earlier to $213.22 billion.
Source: Economic Times
Synopsis India's merchandise and service exports are predicted to exceed USD 800 billion this fiscal year, driven by government support and competitive products. Government initiatives like new industrial cities and the production-linked incentive scheme are boosting domestic manufacturing. Despite geopolitical challenges, Indian exporters are securing orders globally, with the government actively mitigating issues like the Red Sea crisis. The country's merchandise and services exports will cross USD 800 billion this fiscal due to the government support and competitive products of the domestic players, an industry official said on Thursday. Apparel Made-ups and Home Furnishing Sector Skill Council Chairman A Sakthivel said the government has taken a series of steps to enhance the industry's competitiveness in promoting ease of doing business and reducing compliance burden, among others. "I am confident that our total exports will cross USD 800 billion this fiscal," Sakthivel said. The announcement to open 12 new industrial cities in the country will further boost domestic manufacturing, he added. "The production-linked incentive scheme is already a success story at the manufacturing front," Sakthivel said. The Indian exporters are getting good orders from developing and developed economies despite challenging geopolitical situation, he added. He also said Commerce and Industry Minister Piyush Goyal is regularly holding meetings with all the concerned stakeholders, including shipping, to reduce the impact of the Red Sea crisis. Last year, the exports stood at USD 778 billion. Exports during April-September this fiscal increased by 1 per cent to USD 213.22 billion, and imports grew by 6.16 per cent to USD 350.66 billion. The trade deficit during the first half of the fiscal year was USD 137.44 billion. The Cabinet has approved 12 industrial townships in states like Bihar, Andhra Pradesh and Maharashtra. Besides, four have already been developed, and work is ongoing in four other industrial cities. India is developing modern infrastructure, common effluent facilities, and providing utilities like water, power, and digital connectivity in these townships.
Source: Economic Times
Synopsis Following Donald Trump's election as US President, Indian investors are evaluating the potential effects of his proposed trade policies. While some analysts predict difficulties for Indian exporters, particularly in pharmaceuticals and IT, others believe that sectors like EMS and chemicals could benefit from a 'China +1' strategy among US companies. Investors on the constant lookout for emerging big-picture investment trends are assessing the impact of the election of Donald Trump as the next US President on Indian companies. With Trump expected to impose tariffs on imported goods into the US, there is uncertainty about the prospects of Indian exporters, which could result in investors focussing more on shares of companies that benefit from domestic demand.
Source: Economic Times
Synopsis India's Directorate General of Trade Remedies (DGTR) has recommended anti-dumping duties on PVC resin imports from seven countries, including China and the US. The DGTR found that these countries were selling PVC resins below market value, harming Indian manufacturers. If enacted, the duties could reach up to USD 339 per tonne. The commerce ministry's investigation arm DGTR has recommended imposition of an anti-dumping duty of up to USD 339 per tonne on imports of PVC resins from seven countries, including China, the US and Korea, with a view to guard domestic producers. In its preliminary findings, the Directorate General of Trade Remedies (DGTR) has concluded that 'PVC suspension resins' have been exported to India at a price below the normal value, resulting in dumping The notification of the directorate said that the imports from these countries - China, Indonesia, Japan, Korea RP, Taiwan, Thailand and the US - have caused material injury to the domestic industry. "Accordingly, the authority recommends imposition of provisional antidumping duty on the imports," it has said. The recommended duty ranges between USD 25 per tonne and USD 339 per tonne. The finance ministry takes the final decision to impose duties. The DGTR conducted the probe following applications regarding the same from domestic players, including DCM Shriram and DCW Limited. These resins are commonly used in various sectors, including pipes and fittings, films and sheets, bottles, wire and cables. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of Geneva-based World Trade Organization (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters. India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.
Source: Economic Times
Synopsis India's External Affairs Minister S Jaishankar addressed the ASEAN-India Network of Think-Tanks roundtable in Singapore. He highlighted the importance of collaboration between India and ASEAN for economic growth and addressing global challenges. Jaishankar emphasized the need to address the situation in Myanmar and promote selfreliance within the region. India and ASEAN are major demographies and their collaboration can be crucial in tackling contemporary issues, ensuring food and health security and addressing political challenges in the shared region like Myanmar, External Affairs Minister S Jaishankar said on Friday. Jaishankar's remarks came as he addressed the Eighth Roundtable of ASEAN-India Network of Think-Tanks - Navigating a World in Transition: Agenda for ASEAN-India Cooperation. "India and ASEAN are major demographies whose emerging demands can not only support each other but become larger productive forces in the international economy," Jaishankar, who is here on a day-long visit, said. Together, ASEAN and India account for more than a quarter of the world's population, he said The Association of Southeast Asian Nations (ASEAN) members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. "Our consumer demands and lifestyle choices are themselves major economic drivers. They will also shape the scale of services and connectivity as we promote trade, tourism, mobility and education. The magnitude of our endeavours has a resonance that is far beyond the immediate domain," he said. "Collaboration can also be crucial in addressing contemporary challenges. In an era of extreme climate events, ensuring food security is a major concern. Similarly, with the experience of global pandemics, preparing for health security is no less vital," he added. Jaishankar said there are, and there will be political challenges in the shared region like Myanmar that India and ASEAN will have to address together. "A prime example today is the situation in Myanmar. The interest and I dare say perspective of those who are proximate ... is always difficult," he said "We do not have the luxury of distance or indeed of time. This is increasingly the case of HADR (Humanitarian Assistance and Disaster Relief) situations as well and also maritime safety and security," he stressed. Jaishankar called for a stronger culture of self-help which will only arrive by "putting our heads and our time together". The bonding between India and ASEAN is rooted in a deep cultural and civilisational connect and nurturing that has a value in itself, he said. The minister underlined India's contribution in recent times to heritage restoration and conservation of art forms. The India-ASEAN partnership now in its fourth decade holds immense possibility, he said. "Bilateral and trilateral engagements have contributed to our closeness," he said. The minister cited the example of the Mekong Ganga cooperation and the Indonesia-Malaysia-Thailand growth triangle that are making the impact felt. As the Indo-Pacific evolves, India has been expressive in its support for ASEAN's centrality and cohesion. "India has been equally clear about respect for international law, rule and norms - both in approach and substance -- as convergence has only grown over the last four decades. This is a foundation from which we can aspire to high ambitions," he said.
Source: Business Standard
Synopsis The Government of India has announced a change in the release timing for its quarterly Gross Domestic Product (GDP) estimates, moving the release time to 4:00 PM IST from 5.30 PM. The Government of India on Friday announced a change in the release timing for its quarterly Gross Domestic Product (GDP) estimates, moving it to 4:00 PM IST Earlier, the government had also decided to move the release time of inflation and Index of Industrial Production to 4 PM from earlier 5.30 PM. The GDP estimates, generally, are announced by the Ministry of Statistics and Programme Implementation (MoSPI) on the last day of every quarter at 5.30 PM. The government said that the new release time aligns with the closing hours of major financial markets in India, ensuring that GDP data dissemination does not interfere with active trading. "This adjustment also adheres to MoSPI's commitment to transparency and The next GDP estimates will be available on November 29, 2024 for the second quarter (July – September) of Financial Year 2024-25, at 4:00 PM. Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
Source: Economic Times
Synopsis Following Donald Trump's election as US president, Indian officials are drafting policy briefs on trade and investment. These aim to address potential concerns about India's trade practices and highlight investment opportunities, particularly in infrastructure and supply chain diversification away from China. Senior Indian government officials are preparing fresh policy briefs, especially on trade and investment, following the election of Donald Trump as the next US president, two officials told ET. During his campaign, Trump had threatened to impose tariffs on imports to protect US jobs. While the government hopes Trump's second stint will further bolster IndiaUS relations, it wants to prepare for the change of guard in January and convey New Delhi's views on critical issues to allay any misplaced fears and showcase the country's investment potential, one of them said. "Some of the details, especially on trade, may also be sent to the Indian embassy in Washington DC to enable it to clear any misconception that may arise about India's policies there," said one of the officials. A final decision on the matter will be taken by the political leadership, he added. "Details of enormous investment opportunities in India, including in infrastructure, could also be prepared," said another official. "The country's ability to emerge as an investment hub for any diversification in the global supply chains away from China" could be highlighted, the person said. Trump has described India a "tariff king," and during his latest poll campaign, called it a "very big (trade) abuser", while maintaining his strident criticism of China's trade policies. A mini trade deal involving concessional tariffs between India and the US on a number of products, which was being hammered out under the first Trump term, wasn't pursued by the Biden administration. The prospect of a fresh trade deal is now brighter, said experts. In 2017, the commerce ministry had prepared a note for the embassy to sensitise the US administration after Trump had claimed Harley Davidson was paying 100% duty on motorcycles it was exporting to India. The ministry's note had highlighted that Harley, which had a plant in India at the time, used to import components in pre-assembled form and these were subject to just 10% duty. "The idea is that if India doesn't keep all the relevant facts before the new US regime, vested interests may always try to feed their own agenda, which may not be in India's interests," another official said. Senior officials said India's duties remain well below limits allowed under the World Trade Organization (WTO) framework. The average tariff applied by India stood at 17% in 2023, below the average bound rate-or the permissible limit-of 50.8%, according to the latest WTO data. The country's trade-weighted average tariff is even lower, at 12%. This shows India has been restrained in hiking tariffs, despite "some rationalisations" in the past decade, said one of them. The US meanwhile applied an average of 3.3% tariff in 2023, almost as high as the permissible limit of 3.4%. Its trade-weighted average tariff stood at 3.2%. Permissible limits for countries are negotiated by members at the WTO after taking into account a range of factors, including the stage of a country's development. In his first term, Trump had slapped additional duties on steel and aluminum from a number of countries, including India and China. He had also pushed India to ramp up imports from the US, including farm products. The two countries had also approached the WTO to settle disputes. The US is currently India's largest export destination. India had a trade surplus of over $24 billion with the US between January and August this year. It's also the third-largest foreign direct investment source for India. "Things have changed much since Trump's first term. India now remains the world's fastest-growing major economy, promising good returns on investments," said one of the officials cited above. "And the Covid outbreak has exposed the cost of reliance on the supply chains dominated by China. So, if the diversification away from China may accelerate under Trump, India should be ready." The International Monetary Fund has forecast India will remain the world's fastest-growing large economy in this financial year and the next, with 7% and 6.5% expansion, respectively, more than double the global average.
Source: Economic Times
Indian garment industry remains positive on UAE market, with demand anticipated to increase by Apparel Resources News-Desk 06-November-2024 | 2 mins read India’s garment exports have seen significant growth in recent years, benefiting from the political instability in Bangladesh. As a result, many buyers have switched to Indian manufacturers to meet demand, particularly for orders that must be completed quickly. Foreign buyers are thinking about shifting 10–15 per cent of their purchases from Bangladesh to India, which may increase India’s monthly revenue by US $ 300–400 million, according to the Clothing Manufacturers Association of India (CMAI). India’s apparel exports increased by 8.5 per cent in the first half of this year, compared to a 15 per cent decrease in the same period the previous year. In September alone, exports increased by 17.3 per cent year over year. The Comprehensive Economic Partnership Agreement (CEPA), which abolishes a 5 per cent import tax on ready-made garments (RMG), ushers in a new era of trade between India and the United Arab Emirates and gives India a stronger competitive advantage, particularly when compared to China and other key rivals. India’s ambassador to the United Arab Emirates, Sunjay Sudhir, noted that the UAE is India’s third-largest trading partner, with the Emirates being India’s second-largest export destination. “India is without a doubt one of the world’s largest exporters of garments, and a large portion of our exports are made on the overseas labels,” he added. Speaking about the future, CMAI President Santosh Katariya said, “The UAE has been a significant apparel market for many years due to its competitive position. In addition to making up 12 per cent of India’s total apparel exports, it facilitates trade with other nearby nations.” According to the Government of India’s Directorate General of Commercial Intelligence & Statistics, apparel exports from India to the United Arab Emirates totalled US $ 462.3 million between April and August of 2024. Given the upcoming Ramadan Eid at the end of March of the following year, demand is anticipated to to increase.
Within this environment, the 2nd edition of ‘Brands of India’ will take place in Dubai from November 12th–14th 2024, organised by the CMAI, with the event being inaugurated by Sunjay Sudhir.
Source: Apparel Resource
Turkey expects that Donald Trump's administration will lower tariffs on its steel and textile exports, according to the country's trade minister. This comes as the Turkish lira and assets have been gaining ground, buoyed by hopes for changes in U.S. trade and foreign policies under the new administration. Turkey expects Donald Trump's White House will lower tariffs on its steel and textile exports, the trade minister said on Nov. 7, as the Turkish lira and assets continued to rally on prospects of new U.S. trade and foreign policies.
"We expect that customs duties will be reduced in our foreign trade, especially in steel and textile products," Trade Minister Ömer Bolat said on broadcaster AHaber, adding that Turkey's defence and financial sectors could also benefit. Bolat did not elaborate. Trump has promised to levy 10% tariff on all imported goods, to restrict migration and to quickly end wars taking place to Turkey's north and south, in Ukraine and the Palestinian territory of Gaza respectively. Trump's sweeping U.S. presidential victory on Nov. 5 helped spark a rally of as much as 0.4% in Turkey's lira, to 34.2 to the dollar, its strongest level since mid-October. Istanbul's benchmark stock index jumped nearly 3%, marking its best day since May on Nov. 6. Investors and bankers said any renewed U.S. push for peace could underpin Ankara's 18-month-old economic turnaround programme, led by Finance Minister Mehmet Şimşek, which relies in part on foreign inflows to reverse years of soaring inflation. Bolat said he expected the Trump administration, to begin in January, would benefit Turkey's defence industry needs, despite past U.S. sanctions that were levelled under Trump's first term over Ankara's purchase of Russian S-400 missile defences. He also said he expected fallout on banks to ease from Washington's current Russia-related embargoes over Moscow's war in Ukraine. Trump's promised trade and immigration policies could also leave Turkey relatively unscathed among large emerging market (EM) economies such as Brazil, Mexico and China, bankers said. “The Turkey trade is a relative outperformer within global EMs with the Trump victory," said Blaise Antin, head of EM sovereign research at asset manager TCW in Los Angeles. "Yet Turkey is mostly driven by the domestic story and whether Team Şimşek can maintain control over the steering wheel for all of 2025," he added. "If so, then it'll be a very good story for Turkish bonds and the lira." Turkey's aggressive interest rate hikes to 50% have begun to cool annual inflation to below 50% last month from above 75% in May. The policy turnaround that began in mid-2023 has helped lift net international reserves to $60 billion from -$5.7 billion, boosted in part by a return of foreign investors.
Source: duvarenglish.com
South Africa’s textile imports have experienced a significant increase of 8.4% in the first nine months of 2024, according to the latest trade data. The surge in imports highlights a growing demand for textile products in the country, as industries seek to meet both domestic and international market requirements. In total, South Africa imported textiles worth around USD 3.1 billion between January and September 2024. This increase is attributed to various factors, including an expansion in the local apparel sector, rising consumer demand, and a need to support local manufacturing capabilities.
The data shows that key textile imports include fabrics, garments, and home textiles. South Africa remains highly dependent on imports to meet its textile demand, with suppliers from countries like China, India, and Bangladesh playing a pivotal role in the trade dynamics. The ongoing increase in textile imports is expected to continue, supported by South Africa’s efforts to modernize its manufacturing sector and meet the growing demand for high-quality textile products.
This rise in imports underscores the significance of textiles in South Africa’s economy and highlights the ongoing challenges and opportunities for local manufacturers and international suppliers alike.
Source: Tex Talk
