Union Textiles Minister Giriraj Singh on Saturday said that technical textiles will become the economic backbone of India, adding that women can contribute a great deal in handloom and handicrafts sector.Inaugurating the textile pavilion at India International Trade Fair (IITF) in the national capital, the minister emphasised the importance of carbon fibres in the textile industry, adding that India is focusing on amplification of Technical Textiles. There are 12 verticals or sectors in Technical Textiles. Prime Minister Narendra Modi has given Rs 1,500 crore for R&D in this sector and our country is giving more attention in the export of Technical Textiles,” Singh said. The minister emphasised that the government is trying to improve the textile value chain for better income opportunities for the weavers and their families. He also said that India has the largest handloom community in the world, focused around sustainability and energy efficiency. “The world is moving towards usage of sustainable products and handloom industry produces zero-carbon footprint and does not consume any energy and Handloom industry is also a zero-water footprint sector,” the minister noted. As India celebrates the 150th birth anniversary of tribal icon Birsa Munda, theme of the event was inspired by the ‘Janjatiya’ community. Pabitra Margherita, Minister of State for Textiles, stressed upon strengthening handloom and handicrafts to boost production and to increase their earnings to engage communities. He also emphasised the importance of preserving India’s rich craft heritage while adapting to modern market needs. The handloom sector of India employs 35 lakh people directly or indirectly, which is next only to the agricultural sector in the country. Earlier this week, the government approved 12 research projects worth Rs 13.3 crore under the National Technical Textiles Mission. The total number of approved research projects under the Mission now stands at 168 with a total value of nearly Rs 509 crore. The domestic textiles industry is estimated to grow to $350 billion by 2030, generating 4.5-6 crore jobs.
Source: PIB
Synopsis The Indian government is considering imposing minimum import prices (MIP) on certain textile products, including viscose rayon yarn and woven fabrics, to protect domestic industries from a surge in imports, primarily from China. The move aims to curb dependence on imports and address the growing trade deficit with China. The government is examining if minimum import price (MIP) can be imposed on certain textile products which have seen a spike in imports in the last few months and injured the domestic industry. The textiles ministry is studying at least six products including viscose rayon yarn, woven fabric of polyester and cotton shorts, most of which come from China.
Source: Economic Times
Newly elected US Congressman Suhas Subramanyam has voiced his opposition to potential tariffs on Indian exports by the incoming Trump administration. Subramanyam believes such actions would trigger a trade war detrimental to both nations. He emphasizes the importance of US-India economic cooperation and plans to advocate for a reformed immigration system, including a path to citizenship for H-1B visa holders. US Congressman-elect Suhas Subramanyam has said he is opposed to imposing tariffs on India as it will lead to a trade war between the two countries. Subramanyam's comments came amid the likelihood of higher tariffs on Indian exports by the new Trump administration. "I don't support (imposing) tariffs on India. I think that would be really bad. It would lead to a trade war. And I don't think it's good for either country," Subramanyam told PTI in an interview. Ahead of his election as US President, Donald Trump had taken a potshot at India's tariff structure and talked about imposing reciprocal tax on countries like China and India. With Trump set to assume charge as US president, there is a likelihood of higher tariffs on Indian exports. "There's a lot of businesses that do really great work in India and a lot of Indian companies are expanding to the US. So the more our countries work together economically, the stronger we'll be," Subramanyam said. Getting ready to be sworn in as a member of the House of Representatives, which plays a key role in shaping the foreign policy of the United States, Subramanyam said he wants to be someone who promotes democracy around the world. "India, for instance, is one of the largest democracies, and the USIndia relationship is very important to both countries," he said. Subramanyam, 38, is the sixth Indian-American elected to the US House of Representatives. He joins Indian Americans Dr Ami Bera, Pramila Jayapal, Raja Krishnamoorthi, Ro Khanna and Shri Thanedar in the so-called Samosa Caucus. He was declared elected from the 10th Congressional District of Virginia and is the first Indian-American to be elected from the East Coast. He also advocated an overhaul of the US immigration system. "I'm hearing a lot about immigration, especially people on H-1B visas trying to get a path to citizenship and a Green Card at least. And at least a change of status," Subramanyam said. "We need an immigration system overhaul in the United States. We need to focus on legal immigration. There's a lot of talk about undocumented immigrants, and I certainly support securing our border, but we need to do more than just that," he said. Subramanyam said he would also oppose any move by the incoming Trump administration to cut large-scale federal jobs and is looking to be a champion of the federal workforce. ."I want to make sure as they look at the government overhaul that's being proposed, that doesn't mean firing federal workers or cancelling federal contracts," he said. He said he looks forward to being a champion for the federal workforce in Virginia. "I will oppose any efforts (of the incoming administration to cut federal jobs)," he said.
Source: Economic Times
Synopsis India is proceeding with its free trade agreement negotiations with various countries and blocs, including the UK and the EU, according to a government official. Despite rumors of pauses, talks are progressing as planned, with a meeting between Indian and EU trade representatives scheduled soon. New Delhi: Negotiations for all the proposed free trade agreements, including those with the UK and European Union (EU), are progressing as per the schedule and the country's FTAs are not paused, a top government official has said. The official said that an impression is going around that FTAs are paused, which is not correct. "All our FTAs, whether it is with the EU or UK, all are progressing as per the schedule," the official said. In the coming weeks, a bilateral meeting is scheduled between the commerce secretary and the Director-General of the European Union to take stock of the negotiations for the proposed trade agreement with the European Union. They will also meet as part of the Trade and Technology Council (TTC). Besides the EU and the UK, India is negotiating these agreements with Australia, Peru, Sri Lanka, and Oman. In such pacts, two trading partners either significantly cut customs duties or remove the maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.
India has so far implemented FTAs with a number of nations including Japan, Korea, Singapore, and the UAE. According to the commerce ministry, the next round of negotiations for the proposed free trade agreement between India and South American nation Peru will be held after finalisation of the FTA strategy. The standard operating procedure (SOP) or strategy document for negotiating free trade agreements (FTAs) is expected to be ready by the end of this year. It is an internal document aiming to standardise the processes of negotiations of these pacts. The ministry has also informed that the negotiations for a comprehensive economic partnership agreement (CEPA) with Oman were completed in March this year, but further discussions are ongoing.
Source: Economic Times
Chennai: US, being the largest market for India, probable tariff hikes under the Trump presidency can impact shipments of certain segments, including textiles, chemicals, metal products, and telecom products. However, products like cut and polished diamonds and pharma may remain unaffected. In some categories, the US can substitute with imports from other countries and a few categories will lose their competitiveness, finds ICRA. Historically, textile exports from India have been vulnerable to any broader trade policy changes by developed countries due to their influence on demand, pricing and currency movements. Any adverse policy action around tariffs or taxes could affect India's competitiveness against countries like Bangladesh and Vietnam. Similar is the case of auto components as the products will lose their competitiveness. Exports form a significant share in the Indian auto component industry, with the US being a major export destination. In the case of dyes and pigments, organic, inorganic and miscellaneous as well as residual chemicals, India is a major exporter. China is also a significant player and this may keep the market relatively stable. However, ICRA anticipates that some volumes could be affected by substitution from other countries if tariffs rise. Though exports of metals are relatively less, downstream products like tubes, pipes, fittings, sheets and foil will have an impact due to additional duties. In telecom products, the US has a 34 per cent share in global exports. Any rise in duties could impact the Indian export volumes substantially, which may be replaced by countries with whom the US has Free Trade Agreements (FTA). However, there are a few resilient categories as well. India accounts for 90 per cent of the cut and polished diamonds consumed across the world. The US represents almost half of the global polished diamond demand. In case an import levy is imposed, there could be minimal impact on overall exports, given the high reliance of the US on India for the supply of CPD and lack of alternative suppliers.
Further, the US has a significant reliance on other countries for raw materials and finished pharmaceutical products. Given that these products are essential supplies, the new government is unlikely to alter taxes or duties on them. Similarly, agrochemicals are important for food security and hence the duties and taxes may not change. The share of the US in India’s merchandise exports increased from 14 per cent in FY2015 to 18 per cent in FY2024.
Source: Deccan Chronicle
CHENNAI: At a meeting in New Delhi with Union Minister of Textiles Shandilya Giriraj Singh, Minister for Industries TRB Rajaa appealed for establishing mini textile parks in SIPCOT industrial estates across Tamil Nadu, citing the demand for skilled workers in the textile sector and the availability of such resources in various districts. Rajaa took to social media to express it, stating that he made a special request to Singh to bring SIPCOT mini textile parks to Tamil Nadu. He also thanked Singh for the progress on PM Mitra Park in Virudhunagar district, which has generated significant interest within the textile industry.
The Minister further urged the Centre to expand textile industries to six key districts, Virudhunagar (known for its textile manufacturing hub), Karur (famous for its textile and handloom products), Tirupur (a major textile and knitwear hub), Salem (a textile manufacturing centre), Erode (known for its textile and turmeric production), and Nagapattinam (a coastal district with potential for textile growth). This expansion is in accordance with the requests of his Cabinet colleagues, including Thangam Thennarasu, R Gandhi, V Senthilbalaji, Anbil Mahesh, and R Rajendran. Rajaa emphasised that the TN government's goals are aligned to create more jobs and establish the State as a hub for technical textiles.
Source: Dtnext
Textiles exports from India during October were about 11.56 per cent higher at $1,833.95 million, compared to the same month last year. At the same time, apparel exports registered a significant growth of 35.06 per cent during the same period October at $1,227.44 million, the Confederation of Indian Textile Industry said in a report, citing government data. Cumulative exports of textiles and apparel in October 2024 increased by 19.93 per cent compared to October 2023. During April-October, Indian textiles exports registered a growth of 4.01 per cent over the previous year while apparel exports registered a growth of 11.60 per cent during the same time, data showed. "We are encouraged by these developments, as they underscore the resilience and competitiveness of India's textile and apparel industry on the global stage," the industry body CITI said in a note. While the industry body did not give any reason for the export boost, Bangladesh's political instability has likely led to a trade shift to India lately. Bangladesh is a manufacturer of textiles and apparel. India's textile industry is on the brink of expansion, with total textile exports projected to reach $65 billion by FY26, according to Invest India, which is the central government's investment promotion and facilitation agency. According to Invest India, the domestic textile market, valued at around $165 billion in 2022, includes $125 billion from domestic sales and $40 billion from exports. Projections indicate that the market will grow at a compound annual growth rate (CAGR) of 10 per cent to reach $350 billion by 2030. In addition to its textile achievements, India has emerged as the second-largest manufacturer of personal protective equipment (PPE) globally. With over 600 certified PPE-producing companies, India is well-positioned in a market expected to exceed $92.5 billion by 2025, up from $52.7 billion in 2019. The textile industry is also a major employment driver, providing direct jobs to 45 million individuals and an additional 100 million in related sectors. Cotton cultivation alone supports an estimated 6 million farmers and 40-50 million people involved in processing and trade. India is one of the world's largest producers of textiles and apparel.
Source: Business Line
Synopsis A new report by GTRI supports India's decision to opt out of RCEP, citing concerns over widening trade deficits, particularly with China. The study argues that RCEP could harm domestic industries, especially MSMEs, and offers limited export gains, outweighing potential benefits like GVC integration. India’s decision to stay out of the Regional Comprehensive Economic Partnership (RCEP) continues to be justified, according to a recent report by the Global Trade Research Initiative (GTRI). The study highlights that participation in the trade bloc could exacerbate India's trade deficits, particularly with China, and pose challenges to domestic industries, especially small and medium enterprises (MSMEs). India opted out of RCEP in 2019, citing concerns over trade imbalances and the potential harm to local industries. The RCEP, a comprehensive free trade agreement, includes the 10 ASEAN countries and six trade partners—China, Japan, South Korea, Australia, New Zealand, and India (which chose not to join). Together, these countries account for 30% of global GDP and nearly half the world’s population. Key Findings The GTRI report, authored by Ajay Srivastava and Abhijit Das, points to India’s trade dynamics and structural challenges as reasons for avoiding RCEP membership: 1. Trade Deficits: India’s trade deficit with ASEAN, South Korea, and Japan has grown significantly post-FTAs, with an increase of 302.9% for ASEAN,
164.1% for South Korea, and 138.2% for Japan between 2007-09 and 2020-22. 2. China’s Trade Practices: With an $85 billion trade deficit with China in FY24, the report warns that RCEP could worsen the situation by allowing Chinese goods easier access to Indian markets via member countries. 3. MSMEs at Risk: India’s smaller manufacturers could struggle to compete with large-scale Chinese manufacturers if tariff-free imports were allowed, potentially overwhelming domestic industries. 4. Limited Export Gains: India already has FTAs with 13 of the 15 RCEP nations, excluding New Zealand and China. The report argues that additional export opportunities would be minimal as Indian exports to China have stagnated over the last five years. Broader Implications The GTRI study challenges claims that RCEP membership would help India integrate into global value chains (GVCs). Despite longstanding FTAs with ASEAN, Japan, and South Korea, India has not emerged as a major player in GVCs due to issues like slow port clearances and low ease-of-doing-business rankings. Niti Aayog CEO BVR Subrahmanyam recently suggested that India should reconsider joining RCEP to access larger trade areas. However, the report underscores that these benefits may not outweigh the risks, especially for vulnerable sectors like agriculture and MSMEs. The study also notes mixed evidence regarding the link between FTAs and increased foreign direct investment (FDI), a frequently cited argument for RCEP membership.
Source: Economic Times
Synopsis India is poised to become the second-largest recipient of global investments after the US during President Trump's second term. Investors are drawn to India's potential as a market, its alignment with Trump's policies, and its strong economic growth prospects, particularly in sectors like energy, infrastructure, and consumer goods. Mumbai: India is expected to be the second-biggest draw for global investments after the US during Donald Trump's second term as the president, a top Wall Street banker said. Investors, who are sitting on more than $3 trillion to deploy, would be choosy and there would be a divergence of flows between the public and private markets, driven by the returns outlook, said Viswas Raghavan, executive vice-chairman at Citigroup Inc.
Source: Economic Times
Morarjee Textiles, a microcap company in the textile industry, hit a 52-week low on November 18, 2024 and received a 'Strong Sell' rating from MarketsMojo. The stock closed at Rs.9.2, outperforming the sector by 0.37%. However, it has seen a decline of 59.67% in the past year, indicating a lack of stability. Investors should carefully consider the company's financial health before investing.
Morarjee Textiles, a microcap company in the textile industry, has recently hit a 52-week low on November 18, 2024. The stock has been given a 'Strong Sell' rating by Markets MOJO, indicating a negative outlook for the company. The stock price of Morarjee Textiles closed at Rs.9.2 on the day, marking a new low for the company. However, it outperformed the sector by 0.37% on the same day. The stock's performance in the past year has been dismal, with a decline of 59.67% compared to the Sensex's positive growth of 17.54%. The company's moving averages show a mixed trend, with the stock trading higher than the 5-day moving average but lower than the 20-day, 50-day, 100-day, and 200-day moving averages. This indicates a lack of stability in the stock's performance. Morarjee Textiles, being a microcap company, has a relatively small market capitalization and may be more susceptible to market fluctuations. Investors should carefully consider the company's financial health and performance before making any investment decisions. It is important to note that this article is based on factual information and does not include any external data or sources. It is meant to provide a neutral and informative overview of Morarjee Textiles' recent stock performance. As always, investors are advised to conduct their own research and consult with a financial advisor before making any investment decisions.
Source: Market Mojo
Synopsis Senator Marco Dreosto highlights the potential of the India-Europe Economic Corridor (IMEEC) to reshape global trade. Dreosto emphasizes the historical ties between Italy and India, advocating for the Port of Trieste's strategic role as a primary European terminal for IMEEC. He envisions joint ventures in third-country port sectors, aligning with Italy's Mattei Plan for sustainable development. IMEEC represents a breakthrough in India-Europe trade relations, creating an efficient, streamlined corridor that enhances speed, reduces costs, and increases trade reliability. This project is more than infrastructure; it’s a vision of growth and cooperation that opens up endless possibilities for industries, technology, and innovation between the two continents, connecting the Indo-Pacific and the Mediterranean area, Marco Dreosto is a Senator of the Italian Republic and secretary of the Permanent Commission for Defence and Foreign affairs told ET’s Dipanjan
Source: Economic Times
Executive Director of India-Brazil Chamber of Commerce Leonardo Ananda Gomes highlighted the successful bilateral trade between the two countries, which as of now has crossed the $15 billion mark. Speaking to ANI on Sunday, Gomes also highlighted Prime Minister Narendra Modi's "strong relationship" with Brazil President Luiz Inacio Lula da Silva. "Now the trade between India and Brazil is $15 billion, in our opinion we are just starting. There is a huge potential to explore. We are always hosting Indian delegations here in Brazil," Gomes told ANI. On PM Modi's visit to Brazil to attend the G20 Leaders' Summit, Gomes said, "PM Modi is doing a great job and he has a strong relationship with Brazilians and with our President Luiz Inacio Lula da Silva." "So, I am sure that we are facing the best moment for this relationship. India did a very good job and I think it was the best G20 ever. In Brazil, we are trying to do the same thing," he added. PM Modi will attend the 19th G20 Leaders' Summit, scheduled to take place from November 18-19 in Brazil. In the G20 summit, India, as a Troika member, will play a significant role in shaping the agenda, building on the momentum from its own G20 presidency. Brazil is expected to maintain the focus on Global South priorities, ensuring continuity and progress on key issues. PM Modi stated earlier that after India's successful presidency at the G20 Summit last year, Brazil is expected to continue efforts to advance the Global South's priorities. "In Brazil, I will attend the 19th G-20 Summit as a Troika member. Last year, India's successful Presidency elevated the G-20 to people's G-20 and mainstreamed the priorities of the Global South into its Agenda. This year, Brazil has built upon India's legacy. I look forward to meaningful discussions in keeping with our vision of 'One Earth, One Family, One Future.' I will also use the opportunity to exchange views on furthering bilateral cooperation with several other leaders," PM Modi said.
Source: Business Standard
The proposed free trade agreement (FTA) between India and Oman has hit a deadlock, as the West Asian nation has asked New Delhi to revise its market access offer on certain products. Government officials said that the negotiations were completed earlier in March and revising India’s offer would mean restarting inter-ministerial consultations to firm up India’s revised stance. “India is not ready to restart discussions after already seeking inter-ministerial approval in the past,” a person aware of the told Business Standard. Besides, there is a growing feeling amid policymakers that India needs to be more
Source: Business Standard
