Union Minister Giriraj Singh said the textiles sector is turning into another key source of income for the people after agriculture. Speaking at a roadshow here in the run-up to the Bharat Tex 2025, the Global Textile Expo to be held in New Delhi in February, Singh said 4.6 crore people in the country are employed in the sector at present, which is substantially higher than the figure before 2014, the year the BJP-headed NDA under the leadership of Prime Minister Narendra Modi formed the government at the Centre. "Going by the roadmap, the number of people sustaining from the sector will reach the six crore mark in 2030," Singh, the textiles minister, said on Wednesday night. Underscoring that the Narendra Modi government has made innovation as the bottomline for the goal of 'Atma Nirbhar Bharat', he said, "Before 2014 there was no start-up whereas now 1.5 lakh people are associated with start-up ventures." Singh said a new concept of technical textile has added a new dimension and it has greatly benefited the medical sector churning out products like sanitary napkins and masks.
The minister said by 2030, 13 million tonnes of fibre will be used but there will not be any scarcity as both natural and man-made fibres will be in abundance due to the policy of the Modi government. "India has so much diversity in textile, jute, natural fibre, mulberry, tussar whatever silk is available in the global market is produced in India," Singh said, pointing out the government is committed to strengthening this diversity. He said the government will revive the jute sector, for which Rs 12,000 crore has been earmarked. Describing Kolkata as the 'mother of textiles', Singh said that post-independence, the eastern metropolis and Mumbai had been textile leaders but the city lost its pre-eminence over the decades. India's textile industry has moved past China and is moving ahead, the minister said. "People would say our garments faced competition from Bangladesh and Vietnam. China was above us in cotton but not anymore. Through innovation and start-ups, we are racing ahead. While many countries' economies suffered a setback after Covid, our economy continued to grow at a 7-8 per cent rate," Singh said. Union Minister of State for Textiles Pabitra Margherita said the upcoming Bharat Tex 2025 will build bridges of culture with the world. He said Kolkata's contribution to the sector remains immense, "as Bengal is the cradle of heritage handlooms from famed baluchari sarees to jamdani". He said there is a need to form a textile value chain.
Source: Business Standard
The Indian textile industry, which is predominantly micro, small and medium enterprises (MSME)-driven, struggles with limited funding and technical expertise, hindering modernisation and improvement in efficiency, Crisil Ratings has said in its India Progress report. In addition, the report added that the fragmented nature of the industry limits the ability of MSMEs to explore new product categories or growth avenues, which impacts their competitiveness. It added, “There are labour issues, too. The high level of industry fragmentation reduces awareness of labour rights and benefits, leading to challenging working conditions.” The report added that government initiatives, such as the PM MITRA Parks scheme, which offers plug-and-play infrastructure, will play a crucial role in ensuring the development of small enterprises that face challenges due to the absence of efficient transport networks, infrastructure for ecommerce, lack of certification centres and interruptions in power supply. "Such initiatives will help narrow the gap between small manufacturers and their global peers. In addition, efforts to address the lack of information flow to smaller firms will go a long way," according to the report. Notably, SMEs grapple with technological limitations, outdated processes and lack of innovation, which result in low productivity. The absence of adequate knowledge and expertise also restricts their ability to adapt to new trends, restricting their competitiveness.
Rising Demand and Exports
Demand for Indian textiles is expected to log significant growth over the next decade, driven by sustained improvement in domestic demand and increased competitiveness of India’s textile industry in the global market. Rising discretionary spending, expanding middle class, brand awareness among consumers and demand for workwear and athleisure are likely to contribute to domestic demand. According to the report, the demand will also be supported by steady improvement in export markets, with regulatory initiatives further strengthening domestic capabilities. The data from Invest India stated that the domestic textile market, valued at around USD 165 billion in 2022, includes USD 125 billion from domestic sales and USD 40 billion from exports. Notably, the government has envisaged a target of USD 100 billion in textile exports by 2030, marking a steep jump from USD 44 billion in fiscal 2022. The report suggested that India must take on dominant textile exporters such as China and Bangladesh and improve its global market share, which will depend on its ability to overcome challenges such as fluctuating global demand, absence of trade pacts with major markets, cotton price volatility and labour cost increases. Further, India needs to be competitive in quality, pricing and innovation on the global stage. Amid Bangladesh’s political crisis and disruption in its textile sector, a report by Primus Research in August stated that even if 10-11 per cent of its business transfers to India, it could translate into an additional USD 300-400 million per month business for Indian textile players. Bangladesh’s textile sector accounts for 80 per cent of its exports and contributes 15 per cent to its gross domestic product (GDP), has been a powerhouse, especially in the ready-made garments (RMG) sector. “India’s textile industry is expected to grow to USD 350 billion by 2030 and add 3.5 crore jobs,” said Giriraj Singh, Union Minister of Textiles, during a Bharat Tex 2025 curtain-raiser event in September. Singh expressed confidence that the industry's 'Bharat' brand and green, sustainable textile products would be recognised globally. However, Crisil's report revealed that women working in the RMG sector face difficulties due to inadequate accommodation facilities and restrictive work shifts. Addressing these issues is essential to ensure a safer, more supportive work environment and promote inclusive growth in the sector.
Interestingly, export trends over the past two decades underscore India’s pole position in cotton production and cotton yarn exports. India is globally competitive in raw material production, accounting for 23 per cent of global cotton output, and in spinning, it is the largest exporter of cotton yarn and the third-largest in polyester yarn exports. Crisil mentioned that India faces stiff competition in weaving, knitting and processing and holds a minor share in the global trade compared with China. In the RMG segment, India’s share in the global trade is a mere 3%, far behind competitors such as China, which reflects its limited ability towards value addition. Moreover, India has been unable to capitalise on the shift away from China. While India’s share in the global trade continues to hover at 3% over the past two decades, erstwhile smaller peers, such as Vietnam and Bangladesh, who lack domestic availability of cotton and polyester yarn, have now surpassed India in RMG exports as these nations benefit from either lower costs, superior technology, or scale of operations. Notably, the Confederation of Indian Textile Industry data stated that textiles exports from India during October were about 11.56 per cent higher at USD 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 in October at USD 1,227.44 million. Cumulative exports of textiles and apparel in October 2024 increased by 19.93 per cent compared to October 2023. Achieving USD 100 billion in exports is a tall order due to the absence of trade pacts, which render Indian garments less competitive in the price-sensitive apparel segment, marked by high-competitive intensity. Countries such as Bangladesh, which enjoy duty-free access to the European Union, have surged ahead, while India faces tariffs as high as 9.6 per cent. “To compete on an even playing field, India needs more free trade agreements (FTAs). These agreements will not only help Indian exports reach major markets but also open doors to newer regions with significant potential,” Crisil stated. The FTA signed with Australia in December 2022 has proven beneficial — exports to Australia saw a 98% increase in fiscal 2024 compared with fiscal 2019, and Australia’s share in India’s RMG export basket nearly doubled to 2.2% over the same period. This momentum can be further accelerated by the continuation of export-friendly schemes that remit duties and taxes, giving Indian exports a much-needed competitive edge. However, India’s reliance on cotton textiles poses a challenge in a global market that is increasingly leaning toward synthetic fibres such as polyester. Nearly 60 per cent of the global textile consumption is driven by man-made fibres, yet India accounts for just 5 per cent of this segment. This imbalance in production has slowed India’s growth in international markets, where demand for synthetic textiles continues to rise, Crisil Ratings added.
Source: Business World
Union Minister Giriraj Singh discusses the transformative impact of the textile sector on India's economy, highlighting its growth as a major employment provider. The sector aims for sustainability, innovation, and global competition, with initiatives like Bharat Tex 2025 enhancing cultural ties and technological advancements positioning India ahead of global competitors. Union Minister Giriraj Singh emphasized the burgeoning significance of the textiles sector in India's economy, identifying it as a burgeoning source of income alongside agriculture. Highlighting the sector's robust growth since 2014, he stated that 4.6 crore people are currently employed in textiles, a figure expected to reach six crore by 2030. Singh underscored the pivotal role of innovation under the Modi administration in driving 'Atma Nirbhar Bharat', noting the rise of startup ventures related to technical textiles. This innovation has advanced the medical sector, yielding products such as sanitary napkins and masks. By the year 2030, the consumption of fibre is anticipated to hit 13 million tonnes. However, Singh assured there will be no shortage due to the strategic support for both natural and synthetic fibres. Meanwhile, efforts to revitalize the jute sector with a Rs 12,000 crore investment are underway, while India's textile industry continues to outpace China.
Source: Devdiscourse
To push the recycling industry in Panipat, stakeholders are on their toes. Following his visit to Panipat on Monday, Union Minister of Textiles Giriraj Singh on Tuesday had a meeting in his office with Parvinder Singh and Harshit Kakkar, the founders of the Global Alliance for Textiles Sustainability (GATS), which is based in Panipat. Dedicated to sustainable initiatives, GATS is one of the leading organisations working to promote recycling and circularity. The meeting focused on the immense potential of integrating recycled yarns and fibres into the mainstream textiles and apparel industry. Creating sustainable, affordable textiles while generating significant job opportunities, especially for women was also discussed. Parvinder Singh said that they have proposed that an Indian recycled cotton brand mark be created, which will be comparable to the Woolmark brand mark which is known globally. This type of certification will enable India to become a pioneer in sustainable textiles, improve trust among customers and give a specific character to recycled fibres. He further added that the inclusion of recycled yarns in the National Handloom Development Corporation’s (NHDC) Yarn Subsidy Scheme was also discussed. Harshit opined that during the meeting, the Minister gave an affirmation on his strong commitment to promoting measures like these which also have a focus on women in the textile sector getting respectable prospects for employment. Farmer’s incomes would also increase by the creation and use of mixed cellulosic fibres. He added by saying that GATS would support the Minister’s goal of making India a leader in circularity and sustainable textiles worldwide.
Source: Apparel Resource
Synopsis India and the UK are set to resume negotiations for a free trade agreement early next year. The talks, stalled due to elections in both countries, aim to address remaining issues in goods and services trade. Both sides seek greater market access, with India focusing on skilled professionals and the UK targeting reduced tariffs on specic goods. India and the United Kingdom will restart negotiations on their Free Trade Agreement (FTA) early next year, as announced after a bilateral meeting between Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer during the G20 Summit in Brazil. The talks aim to conclude a balanced and mutually benecial agreement addressing pending issues from previous discussions. The FTA negotiations, which began in January 2022, stalled after the 14th round due to political changes and elections in both countries. "The FTA talks would resume the discussions from the progress achieved previously and seek to bridge the gaps for expeditiously closing the trade deal," India’s Ministry of Commerce stated. Focus Areas in Negotiations Key areas of discussion include India’s demand for greater market access for skilled professionals and tari-free entry for goods such as pharmaceuticals and textiles. The UK seeks reductions in import duties on products like scotch whiskey and electric vehicles, alongside greater opportunities for UK services in India’s legal, nancial, and telecommunications sectors. In addition to the FTA, the two nations are negotiating a Bilateral Investment
Treaty (BIT) to strengthen economic ties. Growing Trade Relations India’s exports to the UK increased by 12.38% during April-September 2024, reaching $7.32 billion, compared to $6.51 billion during the same period in 2023. Key export categories include mineral fuels, pharmaceuticals, machinery, and textiles, which account for 68.72% of total exports. Bilateral trade between the two nations grew from $20.36 billion in 2022-23 to $21.34 billion in 2023-24. The Ministry of Commerce has emphasized the UK’s importance in achieving India’s ambitious target of $1 trillion in exports by FY2030, with trade expected to reach $30 billion by 2029-30. Strategic Vision Prime Minister Starmer highlighted the potential benefits of the trade pact, stating, “A new trade deal with India will support jobs and prosperity in the UK.” Both nations are focusing on building a comprehensive strategic partnership that includes cooperation in security, technology, education, and climate change. Diplomatic channels will finalize the dates for resuming talks, which aim to resolve longstanding issues and deepen economic ties between two of the world’s largest economies.
Source: Economic Times
Synopsis India and Australia have strengthened their partnership by signing a renewable energy agreement and pursuing a broader economic pact. Prime Ministers Modi and Albanese, meeting at the G20 summit, pledged to deepen cooperation in defence, technology, and trade to promote stability and prosperity in the Indo-Pacic region. India and Australia sealed an ambitious renewable energy partnership and set their eyes on a comprehensive economic cooperation agreement as Prime Minister Narendra Modi and his Australian counterpart Anthony Albanese vowed to significantly ramp up overall bilateral ties. A raft of issues including ways to boost ties in areas of defence and security ties, mobility, science and technology and education gured prominently at the second India-Australia annual conclave held on the sidelines of the G20 summit late on Tuesday. The two leaders also looked forward to a long-term vision of defence and security collaboration to enhance collective strength, contribute to both countries' security, and make an important contribution to regional peace and security, according to a joint statement. The Renewable Energy Partnership (REP) would provide the framework for practical cooperation in priority areas such as solar energy, green hydrogen, energy storage, investments in related projects and allied areas. In his media statement after the summit talks with Albanese, Modi said both sides will work on new possibilities of cooperation in areas like defence industry, critical minerals, renewable energy, ship building, space and sports.
The two prime ministers welcomed further work towards an "ambitious, balanced and mutually beneficial" Comprehensive Economic Cooperation Agreement (CECA) to realise the full potential of the bilateral economic relationship, the joint statement said. Both sides are keen to build on the momentum created by the Economic Cooperation and Trade Agreement (ECTA) which was signed in 2022. In his remarks, Modi said work will be done for a mutually beneficial CECA and that Albanese committed to protect the interests of the Indian community in Australia, especially Indian students. After the implementation of 'ECTA', our mutual trade has increased by 40 per cent in the last two years, he said. Modi also emphasised the need to resolve conflicts and tensions through dialogue and diplomacy. "We have been and will continue to support peace, stability and prosperity in the Indo-Pacic region together. We have emphasised on dialogue and diplomacy to resolve global conflicts and tensions," he said. The prime minister said both India and Australia are also unanimous on the need for reform in global institutions. Modi said Albanese has accepted his invitation for the Quad summit to be held in India next year. "I am confident that in the times to come, the partnership between India and Australia will touch new heights and will become a force for the global good," he said. According to the joint statement, the two leaders observed that 'Make in India' and 'Future Made in Australia' have complementarity and collaborative potential and could help create new jobs, unlock economic growth and secure our future prosperity in a changing world. "The leaders called for greater two-way investments reactive of the Comprehensive Strategic Partnership and instructed officials to explore ways to realise greater synergies between the economies of both the countries," it said. Modi and Albanese reiterated their commitment to supporting an open, inclusive, stable, peaceful and prosperous Indo-Pacic where sovereignty and territorial integrity are respected. The comments came amid growing global concerns over China's military muscle-exing in the South China Sea as well as in the Indo-Pacific.
"The prime ministers underlined the importance of being able to exercise rights and freedoms in all seas and oceans consistent with international law, particularly the UN Convention on the Law of the Sea (UNCLOS), including freedom of navigation and overight," the joint statement said. The two leaders also reiterated their commitment to strengthening cooperation through the Quad as a "force for global good which delivers real, positive and enduring impact for the Indo-Pacic".
Source: Economic Times
Synopsis India's services exports are on track to surpass merchandise exports by 2030, reaching USD 618 billion. Driven by software, IT, and Other Business Services (OBS), this shift highlights India's emergence as a global services powerhouse. However, diversifying IT exports beyond the US and promoting OBS sectors are crucial for sustained growth. India is set for a major change in its export trends, with outbound shipments of the services sectors expected to overtake merchandise exports by 2030 and touch USD 618 billion, think tank GTRI said on Wednesday. Between 2018-19 and 2023- 24, the country's merchandise exports grew at a compound annual growth rate (CAGR) of 5.8 per cent, while services exports surged ahead at a robust CAGR of 10.5 per cent. "At this rate, by FY2030, services exports are expected to reach USD 618.21 billion, edging past merchandise exports, which are projected at USD 613.04 billion," the Global Trade Research Initiative (GTRI) said. It added that most growth in India's services sector comes from two categories -- software & IT services, and Other Business Services (OBS). Together they accounted for 86.4 per cent of total exports in the last scal year. GTRI Founder Ajay Srivastava said OBS, encompassing areas such as legal, accounting, tax consultancy, management consulting, and market research, generated USD 102.8 billion in 2023-24, representing 33.2 per cent of the total services exports. These industries leverage the country's highly skilled workforce and its burgeoning IT infrastructure, solidifying the nation's reputation as a global services powerhouse, it said. Software and IT services, grouped under the broader category of 'telecommunications, computer, and information services' contributed USD 190.7 billion to India's exports in 2023-24. This segment represents 56.2 per cent of the total services exports, with about 80 per cent of these delivered digitally. "Emerging technologies like generative AI, machine learning, and the Internet of Things are expanding opportunities for Indian rms, driving innovation and global demand for Indian expertise," Srivastava said. "While software and IT services remain the largest segment, OBS is poised to outpace them in growth, driven by rising global demand for specialised services and the integration of services into manufacturing," he added. Globally, OBS trade is more than twice the size of the IT sector, underscoring its potential. In 2023, global OBS trade stood at USD 1.8 trillion, accounting for 25.4 per cent of world services exports, compared to USD 762 billion (10.7 per cent) for software and IT. The GTRI suggested diversifying IT exports beyond the US is a critical rst step. The US accounts for 70 per cent of India's IT export revenue, making the sector vulnerable to US policy shifts. "President-elect Donald Trump's criticism of outsourcing and restrictive H-1B visa policies underscore these risks. Automation and artificial intelligence further threaten 40 per cent of IT jobs," he said, adding that diversification into new markets and focusing on high-value services like digital transformation and AI integration can help reduce dependency on the US and expand earnings. It also asked to promote OBS exports as despite its potential, this segment remains underutilised by many Indian rms. Raising awareness about global opportunities in OBS among engineering, research, and management professionals can unlock significant growth. "India should actively target services with high global trade volumes but low domestic participation. Categories such as transport, travel, maintenance and repair, insurance, and financial services over immense growth potential," it added.
Source: Economic Times
Synopsis India's manufacturing subsidies, particularly those benefiting Apple, have significantly boosted exports. The government has handled Apple the right way, giving the company a great deal of freedom. The temptation, though, is to seek not just economic but political dividends from state largesse. Between April and October, Apple Inc. exported about $7 billion worth of iPhones from India, most of them to the US. Prime Minister Narendra Modi can claim that as a victory for his government’s manufacturing subsidies, the closest the country has come to industrial policy in decades. In 2019, before Modi’s push, phone exports to the US barely crossed $5 million. The government has handled Apple the right way, giving the company a great deal of freedom in choosing where to locate its factories and making sure that India’s often fractious labour relations haven’t disrupted its operations. The temptation, though, is to seek not just economic but political dividends from state largesse. Modi should look to the recent experience of the US to understand how unwise that is. Industrial policy is a partnership between private and public sectors. While the former may be given a free hand in how a subsidised factory is run, the government often has a decisive say in where it is located and the constraints under which it must operate. From the politician’s point of view, the choice of subsidy recipient should balance political and commercial factors. The politician is, of course, wrong. The ideal industrial policy is one that is completely unbalanced, considering only the economic rationale for a chosen set of incentives and ignoring any political harms or benets. Unfortunately, the average leader is incapable of designing a strategy of that sort. A policy that doesn’t win votes is generally dead on arrival. When left to themselves, for example, foreign investors usually drift toward India’s developed southern states. Yet newer investments in the semiconductor sector — made possible by billions of dollars that the government has set aside — seem to be going to regions more closely associated with Modi’s Bharatiya Janata Party. His home state of Gujarat has done particularly well in spite of lingering concerns about the reliability of its industrial water supply, a necessity for fabrication plants. Southern leaders have complained that they are losing out because Modi has given up on winning votes in their bailiwicks. Such politicised decisions help explain why industrial policy has a long history of failing economically. As President Joe Biden’s Democratic Party just discovered, there’s no guarantee it won’t fail politically, too. The billions of dollars doled out by the administration to revive manufacturing in blue-collar towns appear — in electoral terms — to have been a colossal waste. Thousands of jobs have been created by Biden in areas that gratefully voted for Donald Trump. Biden oicials compounded their mistake by insisting that taxpayer dollars only go to unionised workplaces, raising costs without apparently buying many union votes. (Not to mention that the restrictions seem to have been one of the factors driving Elon Musk to spend tens of millions of dollars to help elect Trump.) Bidenomics’ theory of politics was designed around a vision that is outdated at best. Electoral geography matters more than usual when so much is being doled out to create so few jobs. By contrast, the administration seemed to think that any money spent on the working class, anywhere in a former industrial area, would eventually help to win 100,000 extra votes in the so called Blue Wall states of Pennsylvania, Michigan, and Wisconsin. That hope has now exploded spectacularly. Indian politicians would argue they are more strategic than the Democrats by properly targeting the areas they want to defend or ip. But, in the process, they risk overspending on projects that are riskier and less productive than India's economic growth may have slowed in the September quarter, but overall there is not much downside risk to 6.5-7 per cent growth in the current scale year, Economic Affairs Secretary Ajay Seth said on Wednesday. Seth said while some goods and services may not have have grown at the same pace as in the last year in the second quarter of the current scale year, data on e-way bills and e-invoices does not indicate any significant downside possibility to the full year 6.5-7 per cent growth projected in the Economic Survey. The secretary also said food prices have been a concern but other than that, ination is not a challenge for India. On capex, Seth said the government's capital expenditure may see some undershooting of the Rs 11.11 lakh crore in the current scale year. But the capex will be higher than Rs 9.5 lakh crore in the last scale year. "We started the year with estimates in the economic survey of 6.5-7 per cent growth. I don't see any significant downside risk to this... the numbers in the second quarter do indicate that some of the products or some of the services may not be at the same level where they were about a year back or even two quarters earlier. "But thereafter, you look at some other indicators, especially I am looking at that in terms of the e-way bills or the e-invoices in the month of October, they tell a different number. That does not indicate that there is any significant possibility of any downside risk from 6.5-7 per cent goal that has been estimated at the beginning of the year," Seth said at a Ficci event here. The Indian economy grew 6.7 per cent year-over-year in the April-June period of FY25. Although this marks the slowest growth in ve quarters, India ranks among the fastest-growing major economies globally. India grew 8.2 per cent in the 2023-24 financial year.
Source: Economic Times
Growth likely to have slowed in Q2 but no significant downside risk to FY25 projections: DEA
Synopsis India's manufacturing subsidies, particularly those benefiting Apple, have significantly boosted exports. The government has handled Apple the right way, giving the company a great deal of freedom. The temptation, though, is to seek not just economic but political dividends from state largesse. Between April and October, Apple Inc. exported about $7 billion worth of iPhones from India, most of them to the US. Prime Minister Narendra Modi can claim that as a victory for his government’s manufacturing subsidies, the closest the country has come to industrial policy in decades. In 2019, before Modi’s push, phone exports to the US barely crossed $5 million. The government has handled Apple the right way, giving the company a great deal of freedom in choosing where to locate its factories and making sure that India’s often fractious labour relations haven’t disrupted its operations. The temptation, though, is to seek not just economic but political dividends from state largesse. Modi should look to the recent experience of the US to understand how unwise that is. Industrial policy is a partnership between private and public sectors. While the former may be given a free hand in how a subsidised factory is run, the government often has a decisive say in where it is located and the constraints under which it must operate. From the politician’s point of view, the choice of subsidy recipient should balance political and commercial factors. The politician is, of course, wrong. The ideal industrial policy is one that is completely unbalanced, considering only the economic rationale for a chosen set of incentives and ignoring any political harms or benets. Unfortunately, the average leader is incapable of designing a strategy of that sort. A policy that doesn’t win votes is generally dead on arrival. When left to themselves, for example, foreign investors usually drift toward India’s developed southern states. Yet newer investments in the semiconductor sector — made possible by billions of dollars that the government has set aside — seem to be going to regions more closely associated with Modi’s Bharatiya Janata Party. His home state of Gujarat has done particularly well in spite of lingering concerns about the reliability of its industrial water supply, a necessity for fabrication plants. Southern leaders have complained that they are losing out because Modi has given up on winning votes in their bailiwicks. Such politicised decisions help explain why industrial policy has a long history of failing economically. As President Joe Biden’s Democratic Party just discovered, there’s no guarantee it won’t fail politically, too. The billions of dollars doled out by the administration to revive manufacturing in blue-collar towns appear — in electoral terms — to have been a colossal waste. Thousands of jobs have been created by Biden in areas that gratefully voted for Donald Trump. Biden officials compounded their mistake by insisting that taxpayer dollars only go to unionised workplaces, raising costs without apparently buying many union votes. (Not to mention that the restrictions seem to have been one of the factors driving Elon Musk to spend tens of millions of dollars to help elect Trump.) Bidenomics’ theory of politics was designed around a vision that is outdated at best. Electoral geography matters more than usual when so much is being doled out to create so few jobs. By contrast, the administration seemed to think that any money spent on the working class, anywhere in a former industrial area, would eventually help to win 100,000 extra votes in the socalled Blue Wall states of Pennsylvania, Michigan, and Wisconsin. That hope has now exploded spectacularly. Indian politicians would argue they are more strategic than the Democrats by properly targeting the areas they want to defend or ip. But, in the process, they risk overspending on projects that are riskier and less productive than Apple’s successful factories. And in India, as in any other democracy, voters can quickly sour on big, expensive subsidy schemes that don’t address their cost of living or visibly create jobs. For politicians, playing games with cash is the most obvious of temptations. But it can easily backre. The smartest strategy is to avoid it altogether.
Source: Economic Times
Synopsis India is establishing mobile payment connections with several nations, including Sri Lanka, the UAE, and neighbouring countries. The Reserve Bank of India (RBI) is also developing a cross-border payment system and researching the effects of central bank digital currencies (CBDCs) on the financial sector. India is strengthening its cross-border mobile payment systems by partnering with multiple countries, as reported by Bloomberg. T Rabi Sankar, Deputy Governor of the Reserve Bank ofIndia (RBI), shared this update at a conference in Cebu, Philippines. Sankar highlighted an existing arrangement with Sri Lanka and mentioned efforts underway with nations such as the UAE and other neighbouring countries. Additionally, India maintains payment agreements with Bhutan and Nepal. The RBI is collaborating with central banks in the ASEAN region to build an integrated platform for instant cross-border payments. India, recognized as an early adopter of a pilot central bank digital currency (CBDC), is assessing its impact on banking systems and monetary policy, the Bloomberg report stated. RBI Governor Shakti Kanta Das has extended technical support to countries interested in setting united international standards for cross-border payments. However, Sankar emphasized that the full public rollout of digital currency will proceed only after comprehensive impact evaluations. "We are in no hurry to roll it out immediately," he noted. In July, the Bank of International Settlements (BIS) had said that the central banks of India, Malaysia, Thailand, Singapore and the Philippines are working together to start an instant cross-border retail payments platform by 2026, as per a Reuters report. BIS, dubbed the central bankers' central bank, had said it aims to link each country's instant digital payment system -- like India's United Payment Interface (UPI) and Singapore's Pay Now -- as part of Project Nexus, its initiative to enhance cross-border payments. India and the other four countries will be the founding members of the platform, while Indonesia will serve as a special observer, it further added.
Source: Economic Times
HÀ NỘI Việt Nam must diversify its textile and garment export markets, especially because it relies heavily on the US market, said industry insiders and experts during a recent conference in Hà Nội.
The Southeast Asian country's textile and garment industry has been recording impressive growth figures, with export turnover projected to reach US$44 billion this year, an 11.3 per cent increase compared to the previous year. That is forecast to reach $47-48 billion by the end of next year, affirming Việt Nam's position as one of the world's top producers and exporters, second only to China and Bangladesh. But the industry heavily relies on the US, its largest customer which accounts for around 38 per cent of Việt Nam's textile and garment exports. While it has been a testament to how far the country has improved its position in the global supply chain, it leaves the industry vulnerable to trade policy shifts under the upcoming administration of Donald Trump. The US could impose heavy tariffs on Chinese products in comparison to Vietnamese products, giving Việt Nam an opportunity to win customers and expand market share in the US. However, it will take some time before the new administration announces its tariff policies. President of the Vietnam Textile and Apparel Association (VITAS), Vũ Đức Giang, said diversification is key to reducing risks and maintaining stability in times of uncertainty. "We must promote diversification by diversifying export markets, products, and customers," he said. The industry has been strengthening its efforts in diversifying by actively seeking out new buyers in ASEAN, Canada and Russia in recent years. Another focus has been product diversification, notably the shift to the production of higher-value items including fashion and smart textiles. Long-term partnerships have been formed with partners around the world, particularly those who share the same environmental and social goals. It has supported the industry in finding its footing in global supply chains and attracting large investments from China, Japan, Singapore and South Korea. According to VITAS, the industry is currently home to 3,500 foreign-direct-investment (FDI) projects valued at $37 billion, accounting for 65 per cent of its entire export turnover. They have been instrumental in creating employment and encouraging technological development. A prime example is the DTY yarn, fabric and towel manufacturing plant of Sanbang, a Singapore-based company in Nam Định, expected to be operational by the end of this year. With an investment of $30 million, this plant could create hundreds of jobs for the local communities. Other large projects underway include a $203 million fabric dyeing plant invested by Top Textiles, a subsidiary of Toray Group from Japan, and ReGal Vietnam Textile Co. Ltd., which has a $20 million investment from the Hong Kong-based ReGal Group. The industry has been adopting higher international standards in production as major markets such as the US and the EU are tightening their sustainability and digitalisation requirements, forcing companies in Việt Nam to invest in new technologies. CEO of the Đồng Tiến Joint Stock Company, Nguyễn Văn Hoàng, noted that Environmental, social, and governance (ESG) have been shaping the international markets with stricter rules, demanding companies to upgrade to greener technologies, invest in human resources and build strong brands. Vice President of Jack Technology, Jimmy Qiu said Việt Nam has successfully convinced international importers with its fast adaptability to smart manufacturing and green technology. This not only boosts productivity but also sets Vietnamese products apart in the global market. The country, however, must find ways to reduce its over-reliance on imported raw materials by establishing its own supply chains, which could help mitigate risks during periods of market fluctuations. VNS
Source: Vietnam News
The programme aimed at facilitating the creation of 2.5 million jobs, directly and indirectly on an annual incremental basis, whilst simultaneously ensuring the welfare and safety of workers across the country. Organized labour in the country has been urged to partner with President Bola Tinubu in realizing the Renewed Hope agenda of industrial development, job creation and poverty eradication.
Speaking in Ilorin on Tuesday at the 36th Joint Annual National Education Conference organized by the National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) in conjunction with the Nigerian Textile Garment and Tailoring Employers’ Association (NTGTEA), the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, said that the arrangement is almost concluded for the launching of the Renewed Hope Labour Employment and Empowerment Programme (LEEP). At the conference held at the main auditorium of the Michael Imoudu National Institute for Labour Studies (MINILS) Ilorin, the minister, represented by the Director General of MINILS, Comrade Issa Aremu, that the LEEP promises measures aimed at revitalizing the nation’s economy and creating jobs to stem unemployment. According to her, the Labour Employment and Empowerment Programme (LEEP), is a comprehensive suite of interventions at job creation, by the Federal Ministry of Labour and Employment. She stated that the programme aimed at facilitating the creation of 2.5 million jobs, directly and indirectly on an annual incremental basis, whilst simultaneously ensuring the welfare and safety of workers across the country. Meanwhile, the Director General of the Institute Comrade Issa Aremu, has hailed the National Union of Textile Garment and Tailoring Workers for its commitment to members’ education and welfare over the years. He observed in its 46 years as an industrial union, NUTGTWN has signed 48 collective agreements through collective bargaining without resort to workplace shutdown and lock out by employers. He said the peaceful industrial climate in textile and garment sectors was due to consistent workers’ education, adding that MINILS would further collaborate with the Union for further capacity building. Comrade AREMU said that President Bola Tinubu was desirous of industrialization through revival of collapsed textile mills. He, therefore, called on both employers’ association and labour unions in the textile sector to continue the engagement with the government on sustainable industrial policy, adding that “sustainable reform is only possible through value addition not wholesale importation of goods that can be produced locally”. AREMU recommended what he called the “Dangote-Government – Deal formula“ for all manufacturing sectors of the economy. He said government has “business in business” through the creation of a favourable environment and intentional policies that will discourage dumping and imports and encourage local production.
Source: Zawya
