The global supply chain is realigning due to the Bangladesh crisis, bringing garment export orders to India. According to trade data released by the government on Thursday, apparel exports registered 35 % year-on-year growth in October and textile exports grew 11.56 %. Rakesh Mehra, chairman of Confederation of Indian Textile Industry, said in a press release that the significant progress was because of multiple factors, including the increased market share of Indian textile and exports in the U.S., supportive government initiatives, and India’s position as a preferred sourcing destination. Chairman of AEPC, Sudhir Sekhri, said, “India’s RMG exports have witnessed record growth despite global headwinds and disruptions due to ongoing wars; reflecting the resilience of industry to withstand tough times. We are now reaping the benefits of the RMG industry’s drive to strongly focus on quality and sustainability...We have also been doing well in few of the FTA markets such as South Korea, Japan, Australia, and Mauritius.” “Next year we are organising India’s biggest textiles fair Bharat Tex 2025, which will be a great platform to showcase our potential. The global buyers and brands are eagerly waiting to source from India and we have been doing roadshows and roundtables to invite them. The response we are receiving from them is very encouraging,” he added. According to Mithileshwar Thakur, Secretary General of AEPC, “This is the time when the supply chain is getting re-aligned due to the Bangladesh crisis and the global buyers are looking for China’s alternative. Additionally, ongoing wars have disrupted the traditional trade routes adding to the cost burden. This is the appropriate time for the government to whole- heartedly support this labour- intensive sector through handholding, capacity augmentation, skilling, investment and sustained financial support to this MSME driven sector.”
Source: The Hindu
In a bold move towards sustainable textile production the Ministry of Textiles is drafting a strategy approach paper to support the industry’s decarbonisation efforts with concrete steps. Building on its Sustainable Bharat Mission for Textiles (SBMT) recently launched at the ESG Task Force Meeting, the ministry aims to transition the sector towards resource-efficient processes such as recycling by charting clear-cut pathways. During the 11th edition of the India and Sustainability Standards Conference, Rohit Kansal, Additional Secretary at the ministry, highlighted the pioneering role of the ESG Task Force in driving changes emphasising the importance of a collaborative approach to unlock sustainable growth potential, which is estimated to boost the eco-friendly fashion market to over $ 15 billion in five to seven years. With a culture rooted in sustainability, India can potentially lead the global march towards sustainable production at scale, especially in the world of textiles said Kansal. “The Indian ethos upholds the concept of sustainability and it is time that we reclaimed this heritage.” It is estimated that a trillion-dollar economy can be interlocked and unlocked by following circular business practices. The sustainable fashion ecosystem is expected to grow to over $ 15 billion in the next five to seven years, according to Kansal. Eco-friendly practices can be a valuable differentiator, which in turn would enable brands, suppliers and even MSMEs to leverage their decarbonisation efforts towards achieving sustainable leadership. The concept of sustainability has, however, undergone a change with a visible shift from a few cosmetic, sporadic actions to a mainstream and all-encompassing movement. Said Kansal: “The focus is on moving away from a linear value chain to a circular value chain.” Sustainability has now adopted a systems-based approach that embraces everything, from thinking and planning to products, people, manufacturing, and energy and waste management. According to the UNFCCC estimates, textile production spews 1.2 billion tons of greenhouse gases annually, which is more than international aviation and maritime shipping combined. An estimated half a trillion dollar in value is lost every year due to clothing that is ‘barely worn and rarely recycled’, making textiles the third largest contributor to municipal solid waste. According to the Executive Director of the Foundation of MSME Cluster Mukesh Gulati, different enterprises have different sustainability narratives. “Some are interested in taking the sustainability agenda forward, while there are other who think nothing of polluting our rivers and water bodies.” “Therefore, it is necessary to identify a common ground for dialogue, starting with smaller initiatives, which can yield real results in the first couple of months, and then build on those success stories.” Panipat is home to an SME cluster that supplies more than a million pieces of garments to the Indian industry every day. It is also a shining star on the sustainability horizon, adhering to the best green practices at a huge scale. Talking about their recycling capacities, Founder of Global Alliance for Textiles Sustainability Council, Parvinder Singh said that Panipat has been able to achieve 100 per cent recycling. While such wins are inspiring, the industry will need continued support from the ecosystem to move forward. Singh emphasised that MSMEs need knowledge and collaboration. This is because, in clusters most people are making similar products and they don't have any USP in terms of product innovation, techniques and technology. “As we proceed towards a decarbonised and sustainable world, our priorities must expand beyond just finance and focus on knowledge, innovation and collaborative efforts”, concluded Singh.
Source: Outlook Business
The Indian economy is in a sweet spot, with a mix of solid growth and moderating inflation, Moody’s Ratings said in its latest global macro outlook published on Friday. The rating agency has projected 7.2 per cent growth for India for 2024. It is followed by 6.6 per cent and 6.5 per cent growth for 2025 and 2026, respectively. India's real GDP expanded 6.7 per cent year-on-year (Y-o-Y) in the June quarter of 2024. It was driven by a revival in household consumption, robust investment and strong manufacturing activity. The report said high-frequency indicators – including expanding manufacturing and services purchasing managers' index (PMI), robust credit growth and consumer optimism – signal steady economic momentum in the September quarter. “Household consumption is poised to grow, fuelled by increased spending during the ongoing festival season and a sustained pickup in rural demand on the back of an improved agricultural outlook. Additionally, rising capacity utilisation, upbeat business sentiment and the government's continued thrust on infrastructure spending should support private investment,” said the report. Moody’s report also added that sound economic fundamentals, including healthy corporate and bank balance sheets, a stronger external position and ample foreign exchange reserves, also bode well for the growth outlook of India. Sporadic food price pressures continue to inject volatility in the disinflation trajectory. Headline inflation breached the upper bound of the Reserve Bank of India’s (RBI’s) tolerance band of 2-6 per cent for the first time in more than a year in October, accelerating to 6.2 per cent amid a sharp jump in vegetable prices. “Despite the near-term uptick, inflation should moderate toward the RBI’s target in the coming months as food prices ease amid higher sowing and adequate food grain buffer stocks. Even so, potential risks to inflation from heightened geopolitical tensions and extreme weather events underscore the RBI’s cautious approach to policy easing,” added the report. The report also highlighted that increasing trade protectionism together with a push in several large economies to strengthen their domestic industries make external demand a less reliable source of growth. “Most G-20 economies will experience steady growth and continue to benefit from policy easing and supportive commodity prices. However, post-election changes in US domestic and international policies could potentially accelerate global economic fragmentation, complicating ongoing stabilisation,” the report said. Moody’s said economies with robust domestic drivers of growth will experience greater resilience and stability. “Meanwhile, several G-20 economies, including the US, Europe, India, Brazil and Indonesia are exploring industrial policies in an effort to improve their economic resilience, which could potentially alter the structures of their economies,” it added. The report also noted that supply chain relocation, investment from multinational companies and Chinese domestic manufacturing firms also create opportunities for India, Mexico and several Southeast Asian countries.
Source3: Business Standard
As the golden hues of autumn give way to the crispness of winter, the fashion world is witnessing a renaissance of traditional elegance, led by the evocative Banarasi sari. This iconic garment, steeped in centuries of history, is experiencing a remarkable revival, thanks to the groundbreaking collaboration between Ekaya Banaras and 431-88 by Shweta Kapur. This partnership not only pays homage to the rich heritage of Banarasi textiles but also reimagines them for the modern wardrobe, making the sari a stylish staple for contemporary women. Palak Shah, the visionary founder of Ekaya Banaras, and Shweta Kapur, the dynamic creative director and founder of 431-88, have come together to create a collection that beautifully marries tradition with innovation. “We’re redefining the Banarasi sari, and presenting it in fluid fabrics that are lightweight and versatile. This collection aims to make the sari a daily wear garment rather than just a ceremonial piece,” says Shah. At the heart of this collaboration is a shared vision to make Banarasi textiles accessible to a younger audience. Kapur expresses her excitement about the potential of the sari, “We want everyone to see the sari in a new light and understand that you don’t always need to look west for style inspiration. We are creating outfits that are incredibly chic and sexy right from our traditional roots. The collection comprises 64 ensembles in 17 designs. It serves as an invitation for modern women to embrace their cultural heritage while exploring innovative ways to style handloom fabrics. “We aim to inspire more people to wear handloom textiles and showcase their beauty,” Shah states. “Our goal is to convey that Banarasi textiles are timeless and can also be modern and accessible.” Each garment tells a story, incorporating intricate embroideries and nature-inspired motifs. From subtle Tanchoi patterns to lavish zari designs, the collection reflects a harmonious blend of traditional craftsmanship and contemporary aesthetics. “Every piece is meticulously crafted, embodying the rich history and intricate techniques of Banarasi textiles,” Shah shares. For any formal and festive event, this collection offers a wealth of options for women looking to make a style statement. Whether it’s a vibrant co-ord set for a celebration or a pre-draped sari for a family gathering, there is something for everyone. Kapur hopes that, “For any event, we can help women find their signature piece to kick off the celebrations.” The collection showcases a striking transformation of traditional Banarasi saris into contemporary silhouettes that resonate with today’s fashion sensibilities. From co-ord sets and blazers to predraped saris, each piece is designed for effortless draping and wearability. “Heritage textiles and techniques get a unique twist reflecting the style sensibilities of both brands,” explains Kapur. The resulting garments are not just fashion statements; they are a cultural dialogue that encourages women to embrace their heritage with pride. The vibrant colour palette is another highlight, featuring bold shades like fuchsia, fiery reds, and electric blues, harmoniously contrasted with classic black and white. “We draw inspiration from the beauty of nature — flowers, water waves, and earth textures,” Kapur adds. “These elements are reflected not only in the designs but also in the colours, making the collection inclusive and appealing to all.” One of the standout innovations in this collection is the concept of pre-draped saris, which address both style and practicality. Traditionally, the art of draping a sari can be a daunting task, especially for women on the go. Shah shares, “For the first time ever, Banarasi textiles are being zipped. This revolutionary approach empowers women to incorporate the grace of a sari into their daily lives without the usual hassle.” The pre-draped saris are designed to be as easy to wear as they are chic, combining the elegance of the sari with the convenience of contemporary fashion.
Source: New Indian Express
New Delhi: India is emerging as one of the least affected markets in the region when it comes to former U.S. President Donald Trump's trade policies, highlighted a report by global brokerage firm CLSA. The report stated that this resilience is attributed to India's relatively low trade exposure to the U.S., manageable corporate leverage, and declining levels of foreign equity ownership. While other markets might face greater vulnerabilities, India remains better positioned to weather such challenges. "India appears as among the least exposed of regional markets to Trump's adverse trade policy. Moreover, so long as energy prices remain stable, India may offer a relative oasis of FX stability in an era of a strengthening US dollar" it said. The report also reversed its tactical overweight on China while raising its exposure to a 20 per cent overweight on India. It said "We therefore reverse our tactical allocation in early October, returning to a benchmark on China and a 20 per cent overweight on India." It mentioned that one of the key factors supporting India's stability is its ability to maintain relative foreign exchange (FX) stability, especially if global. energy prices remain stable. Despite a strengthening U.S. dollar, India is seen as an attractive destination for investors seeking to shield themselves from volatile markets elsewhere. The report also noted that the foreign investors have been net sellers in the Indian market since October. However, this hasn't dampened domestic investor appetite, which continues to remain robust and has helped offset the impact of foreign outflows. It stated that many foreign investors, in fact, see this dip as a potential buying opportunity to address their underexposure to India. While valuations remain slightly high, they are becoming more appealing to investors. The report said "India has seen strong netforeign investor selling since October, while investors we met this year have been waiting specifically for such a buying opportunity to address Indian underexposure." A key risk to Indian equities, however, is the possibility of an overwhelming volume of new stock issuances. The cumulative 12-month issuance currently stands at 1.5 per cent of the market capitalization, a level often seen as a historical tipping point that could strain the market. Furthermore, India could benefit from the ongoing shift in U.S. investment flows as companies adopt "China plus one" strategies, which aim to diversify supply chains away from China. This trend could bolster foreign investment in India, adding another layer of support to its economic resilience.
Source: Economic Times
Commerce and Industry Minister Piyush Goyal on Thursday suggested the India Trade Promotion Organisation (ITPO) to consider holding two annual editions of the trade fair and make it bi-annually.
Presently, the ITPO organises its flagship 14-day India International Trade Fair (ITPO) annually in November. The theme for the fair is 'Viksit Bharat @2047'. Goyal also asked to look at starting India's fair in other parts of the world like the US, Europe, Japan, Korea and Middle East nations.
Source: Outlook Business
Synopsis India's imports from the UAE surged by 70.37% to USD 7.2 billion in October, resulting in a trade deficit of USD 3.5 billion. This surge in imports, primarily in silver, platinum, and dry dates, has prompted India to raise concerns with the UAE, urging them to ensure adherence to the Free Trade Agreement. New Delhi: India's imports from its free trade agreement partner UAE have jumped by 70.37 per cent year-on-year to USD 7.2 billion in October, leaving a trade deficit of about USD 3.5 billion during that month, according to the commerce ministry data. The deficit, the difference between imports and exports, was USD 2.47 billion in September. Cumulatively also, the imports from the UAE during April-October rose by 55.12 per cent to USD 38.64 billion against USD 24.91 billion in the same period previous fiscal, while exports were up by 15.86 per cent year-on-year to USD 20.93 billion compared to USD 18 billion in April-October 2023-24. The trade deficit during the seven-month period has widened to USD 17.71 billion from USD 6.85 billion in the same period a year ago. The FTA between India and the UAE came into effect in May 2022. According to the data, India's imports from UAE rose by 49.22 per cent to USD 5.38 billion in September and 72.7 per cent to USD 6.38 billion in August. Exports, on the other hand, increased by 23.75 per cent to USD 2.91 billion in September and 3.16 per cent to USD 2.84 billion in August. In a recent meeting last month, India raised its concerns over the jump in imports of silver products, platinum alloy, and dry dates from the UAE and urged the country to ensure that the rules are not circumvented under the Free Trade Agreement (FTA). The Emirates has agreed to examine concerns raised by the Indian counterparts. The UAE is the third-largest trading partner of India with USD 83.65 billion bilateral trade in 2023-24. The major goods imported include mineral oil, chemicals, essential oils and perfumes, precious and semi-precious stones, iron and steel products, copper, nickel and aluminium goods.
Source: Economic Times
Nearly 2,000 workers at textile factories in Casablanca, Morocco, now can receive decent pay, health care protection and a voice on the job after joining the Moroccan Workers’ Union (UMT) and the federation of textile workers. “We joined the union primarily to preserve our dignity, which some managers have trampled on,” said one worker, who voted for the union. (Names are not used to protect workers’ privacy). All 605 workers in three factories in Casablanca and the majority of the more than 1,000 workers in four additional factories in the area’s large textile industry joined the union. With a union, workers at textile factories are able to address workplace safety and GBVH. Credit: Hicham Ahmaddouh Without a union, said one worker, “we couldn’t find solutions to our issues or secure our legal rights, which the company has neglected for more than five years.” Workers at the leather, textiles, and ready-made garment factories are involved in leather production, sewing, dyeing, supplies and garment manufacturing. They say they often were not paid wages, and received insufficient compensation when often required to work overtime—or engage in fewer hours than specified by the government. “Wage payments are often delayed, and we only receive them after striking and protesting,” one worker stated when describing conditions before the union representation. Another worker described being “required to work up to 240 hours a month instead of the legal 191, which should qualify as overtime, yet we receive no compensation.”
Developing Outreach
Achieving success in mobilizing and assisting textile workers to form unions was part of a two-year campaign involving Solidarity Center support in providing data and analysis of key employers, supply chains and other information.
Together with the UMT, the Solidarity Center trained a team led by two women and one man to head up the organizing drive. Over the past year, the team conducted one-on-one outreach at the factories, located in a difficult to access industrial zone. They met with company officials, organized offsite outreach meetings and collected worker stories about their needs and challenges in accessing their fundamental rights.
The outreach effort is essential for expanding the union’s efforts to broaden worker rights.
“Organizing textile workers is crucial to strengthening the union’s capacity to advocate for workers’ rights, secure demands and build solidarity within the Moroccan Labor Union and the National Union of Textile, Leather, and Ready-Made Garment Workers,” said Al-Arabi Hamouk, general secretary of the National Federation of Textile, Leather and Ready-Made Garment Workers.
Textile workers sought improved occupational health and safety in the factories and wanted to ensure the companies’ adherence to labor laws and payment to the country’s social protection fund
“Since 2023, we have been deprived of health coverage because the company hasn’t paid the required contributions, even though they are deducted from our wages,” one worker said.
By forming a union, abuses such as gender-based violence and harassment could be addressed, according to a factory worker.She said in the past, workers suffered “from verbal and sexual harassment by some managers, as well as arbitrary individual and collective dismissals when demand decreases or when we ask for our legal rights.” “The Solidarity Center played a critical role in the success of the campaign within the textile sector,” said Hamouk. “The organizing team demonstrated the ability to strategize, and address challenges.” Assisting textile workers in forming unions moves forward their ability to achieve decent wages, safe workplaces and essential health care coverage—and advances their democratic rights to freely form unions. Said one union member: “We achieved dignity and the freedom to associate, which was previously denied.”
Source: Solidarity center
Bangladesh's informal textile waste management system must be formalised to align with the European Union's (EU) sustainable product regulations, experts said on Tuesday during a discussion aimed at improving the country's ready-made garment (RMG) industry. The discussion was titled to be about switching to practices in the RMG industry that lead to sustainability (circularity) during the manufacturer's collection of raw materials in the supply chain (upstream).
The formalisation is required also for averting political-economic tension and labour unrest in the country's RMG industry, the industry representatives said. Moreover, the experts opined that an enabling policy framework is essential to drive the transition as it could create millions of jobs in the recycling industry and reduce Bangladesh's reliance on imports.
The event was organised under the 'SWITCH to Circular Economy Value Chains' project, co-funded by the EU and the Finland government led by United Nations Industrial Development Organization (UNIDO).
Bangladesh Garment Manufacturers and Exporters Association, Global Fashion Agenda, BESTSELLER, Reverse Resources, Chatham House, Circle Economy, and the European Investment Bank also collaborated to organise the programme. Speaking there, Ministry of Commerce Additional Secretary (Head of export wing), Abdur Rahim Khan said, "In our country, jhute (garment waste) is not only an economic issue but also a law and order issue." Citing the latest labour unrest in the country's RMG industry, he said the waste has been attributed as one of the major contributors to this unrest and stressed the need for framing a policy for waste management. Though a policy will not directly help the country to transform into circularity, he mentioned, saying that it will resolve the unrest around the sector, hinting that an obstacle on the path towards circularity will be removed. "Our export is going to be hampered to the EU if we don't move and shift our manufacturing strategy into circularity," he also said. Mr Khan further stressed for technology transfer, financing and a national strategy for circularity and called for coordination among the three stakeholders-manufacturers, waste management companies and brands. Deputy Head of EU Delegation to Bangladesh Dr Bernd Spanier said the next five years would be crucial for Bangladesh's garment industry. Garment-producing countries must transition from the linear to circular production model to ensure that textiles are free of dangerous substances and they are produced in an environmentally and socially responsible manner under the EU Strategy for Sustainable and Circular Textile, he noted. The post-industrial regulatory framework is also essential because current frameworks, such as the National Environmental Policy, the Solid Waste Management Rules and the Bangladesh Labour Act, are not well aligned so far with emerging EU and international standards for circularity in textile manufacturing and waste management. The industrial textile waste market in Bangladesh remains largely informal and that has a significant political-economy nexus in the sector as seen during the recent labour unrest in Ashulia and other parts of Dhaka, Mr Spanier added. Formalising the sector is very important, he said adding a clear regulatory framework and enabling conditions would also attract innovative recycling technologies and know-how. Citing a recent study of a Germany-based service provider, GIZ, he said that Bangladesh's lack of supportive policies has contributed to shifting preferences towards countries like Vietnam and Indonesia as destinations for recycling industries. The diplomat also stressed for improvements in the business environment for this transformation and to attract more European companies here. Chief Technical Advisor on Circular Economy in Global Value Chain from UNIDO, Mark Draeck, said in the textile industry, especially regarding circularity, things were more complex, which is why progress has not been straight orward. He highlighted two concrete pilot projects they are working on, closely collaborating with both brands and manufacturing companies, to address challenges at the technology, logistics, economics and traceability levels. Citing his visit at factories including Fakir Group and Recycle Raw, he said interest and readiness from the industry to move forward was evident. However, to scale these initial experiences across the industry, more systemic challenges must be addressed, including policy, capacity building, access to finance and the necessary investments for this shift, Mr Draeck added.
Source: Financial Express
The Council for the Development of Cambodia (CDC) recorded 346 investment projects worth over $5 billion in the first 10 months of this year, marking an increase of 38 percent compared to the same period in 2023. The investments also created 270,000 jobs for local people.
This was disclosed by Chea Vuthy, Secretary General of the Cambodian Investment Board (CIB) of CDC, as he presided over the event themed ‘Economic Cooperation Forum and Lin Clans Commercial in Cambodia and International’ in Koh Pich on Tuesday. The event was attended among others by Lim Soon Peng, Founder and Chairman of the World Lin Chamber of Commerce (WLCC). In his remarks, the Secretary-General emphasised that over two decades of lasting peace has enabled development across all sectors in the country. “In fact, the Kingdom’s economy grew by about five percent, with investment rising 38 percent in the first 10 months compared to the same period last year,” he said. Vuthy expressed his deep gratitude and appreciation to the WLCC and the Lin Clans Commercial Association in Cambodia (LCCAC) for co-initiating this important forum, citing that initiative came from the meeting between Prime Minister Hun Manet and the WLCC Chairman in May this year. “This forum is crucial for investors and businessmen to strengthen their interaction, communication and network, enabling all counterparts to learn about new laws, regulations, and investment potential in Cambodia,” the Secretary-General said. He said that WLCC and LCCAC will continue to work closely with the Royal Government of Cambodia (RGC) aimed at attracting foreign investors to consider choosing the Kingdom as a potential investment destination for both direct investment and business partnerships with local investors. “The initiative will mobilise foreign businesses to invest in priority sectors including agriculture and agro-industry, automobile and electronic manufacturing, industrial park and special economic zones (SEZs) development, tourism and hospitability, and green technologies.”
Vuthy went on to share the key factors that make Cambodia a prominent investment destination among Southeast Asia countries. During the event, Nut-Un Voanra, Deputy Secretary General of CIB of CDC made a presentation on the “Implementation of Investment Law & Introduction of Flexible Mechanism to Provide Support and Respond to the Need of Investors’ to inform distinguish guests about the potential and business environment in the country. Separately on the same day, Sar Senera, Deputy Secretary General of CIB, was invited as a speaker on the seminar topic ‘Economic Policy Update’ to share the importance of legal policies and instruments for attracting foreign direct investment, at Hyatt Regency Phnom Penh. During the meeting, Senera pointed out that CDC registered a total of 227 projects with a total investment of over $4 billion and created 260,470 jobs in the first 10 months of 2023 while this year, the investment projects have reached 346 with capital worth over $5 billion and provided 268,242 new careers with the same duration. While sharing his thoughts with Khmer Times, Anthony Galliano, Group CEO of Cambodian Investment Management Holdings (CIM), said that there is positive momentum on investment projects in the Kingdom. “The silver lining is the diversity of projects, helping infrastructure development, leading to a revival of domestic spending, and increased allocation to manufacturing,” he noted. “The negative aspect is the substantial concentration of foreign investment from China, mainly as a result of trade treaties, Regional Comprehensive Economic Partnership (RCEP) agreement and the Cambodia-China Free Trade Agreement (CCFTA), and the intensifying geopolitical trend of ‘friend-shoring’. Cambodia remains a strong destination for lower skills manufacturing investments in garments, travel goods, and footwear.”
He added that ASEAN has emerged as one of the hottest regions for foreign direct and portfolio investment due to the region’s robust economic expansion, favourable regulatory environment, and focus on emerging investment sectors of digital infrastructure, middle to high-end manufacturing with the supply chain shift with China de-risk play in motion, tourism, and renewable energy.
Vietnam, Indonesia, Thailand and Malaysia are the significant beneficiaries hence Cambodia has an opportunity to attract this hot money flowing into the region, primarily sourced from the US, EU, Japan, and intra-ASEAN, by focusing on building capacity in the sectors that are most trendy, CIM CEO added.
Source: Khmer times
According to statistics of VITAS, total textile and garment export turnover in October reached 3.86 billion USD, up 10.7% over the previous month and 24.26% compared to the same period last year. The export turnover in the first ten months of this year reached 36.11 billion USD, up 9.86% over the same period in 2023. Vietnam has exported textile and garment products to more than 100 countries and territories. Giang said that textile and garment export activities are expected to continue to improve at the end of the year, with key export markets of Vietnam such as the US, the EU, Japan, and China still maintaining growth. Meanwhile, there is potential in the ASEAN, Russian, and Canadian markets for businesses to increase their sales.
In addition, the continuing downward trend in freight rates is also supporting the growth of textile and garment exports. In addition, the cooling interest rate policy in the US and Europe is expected to stimulate year-end shopping demand. However, he noted that the textile and garment industry is still facing many challenges including stricter standards from buyers in the EU and US markets and a growing trend of green, sustainable, and digital development which require businesses to focus on investing in technology to adapt and seize opportunities.
Source: Apparel Views
The dollar was set for its biggest weekly gain in over a month on Friday, supported by expectations of fewer Federal Reserve rate cuts and the view that President-elect Donald Trump's policies could stoke U.S. inflation when he takes office. Volatility in the currency markets has run high this week as investors weigh up the potential tail-wind for the dollar from Trump's proposals on taxes and tariffs against what those plans mean for the rest of the world. The dollar is trading around a one-year high against a basket of currencies at 106.81, having risen nearly 1.8% this week, set for its best performance since September. A key pillar of support for the dollar has been the expectation that higher inflation under Trump will mean the Federal Reserve has less room to cut interest rates. Fed Chair Jerome Powell on Thursday said as much, citing ongoing economic growth, a solid labour market and sticky inflation. "What we're seeing is the Fed starting to get a little bit cautious because of what could be coming, although they need to remain data dependent, so they can't make policy on potential moves by Trump until they've actually happened," said Fiona Cincotta, market strategist at City Index.
Moody's says Indian economy in 'sweet spot,' predicts 2024 growth of 7.2%
PRESSURE ON THE POUND
Sterling was on track for its steepest weekly fall since January 2023, at roughly 2%. It was last flat at $1.2671. The euro itself has been a major casualty of dollar strength this month. It has tumbled to its lowest in over a year, as traders factor in the impact to the euro zone economy from Trump's threatened tariffs and the likely steeper drop in interest rates as a result. The single currency was up 0.34% on the day at $1.05647, set for a weekly drop of 1.4%. It has fallen in six out of the last seven weeks. Against a resurgent dollar, the yen has come under the spotlight as it weakens to levels that have triggered intervention from Japanese authorities in the past. The Japanese currency has fallen nearly 11% since its September peak and weakened past the 156 per dollar level for the first time since July in the previous session. "The pace always matters more than the level. Given the yen has already weakened by 11% against the dollar over the past two months, I think we are getting closer to an actual intervention," Carol Kong, a currency strategist at Commonwealth Bank of Australia, said. Finance Minister Katsunobu Kato added his voice on Friday, saying authorities would take appropriate action against excessive exchange-rate moves. The yen was last at 155.575, up 0.4% on the day, but still set for a weekly decline of around 2%. The onshore yuan edged up against the dollar to stand at 7.2395, but was still on course for a seventh straight weekly drop - its longest losing streak since 2021. In cryptocurrencies, bitcoin traded just below $90,000, as some investors took profits after a stellar run. The world's largest cryptocurrency has surged nearly 30% on a two-week rolling basis on the view that friendlier U.S. regulation was imminent under Trump's administration and could usher in a new boom for all corners of the asset class.
Source: Business Standard
