VIJAYAWADA: The new textile policy has been evolved to attract Rs 10,000 crore investments to the State, which can generate two lakh jobs. Chairing a review meeting on the new textile policy being adopted by the State government on Tuesday, Chief Minister N Chandrababu Naidu directed officials to ensure that it is much better than the previous one meant for 2018-23. Rural women can be employed on a large scale in the textile sector. “Andhra Pradesh will be the ideal destination for investments in textiles once the new policy comes into force,” he asserted. The Chief Minister, who expressed satisfaction over the draft policy, gave his assent to it, which will be placed before the Cabinet soon. The government has already announced over 10 new policies, covering key sectors. In the new textile policy, it has been proposed to provide incentives and increase the capital subsidy to encourage setting up of weaving, processing, garment and integrated units. Additional incentives have also been proposed in the new policy for SCs, STs, BCs and Minorities, besides women. Holding a review meeting on the leather policy, the Chief Minister said the government will take a decision on it only after thorough discussions.
Source: New Indian Express
Synopsis Commerce Minister Piyush Goyal highlighted India's manufacturing and export growth, emphasising the country's rising quality consciousness and interconnected ecosystem. He also noted the rapid expansion of 5G and invited global investment. Manufacturing and export-led growth has gained strength in India, Union Minister of Commerce & Industry Piyush Goyal said at a press conference on November 28. India is emerging as a quality conscious nation now, Goyal said. India's rising impact in the emerging sectors is a result of the establishment of an inter-connected ecosystem, the minister added. With reference to the speculations over changes to India's laptop import policy, Goyal said new guidelines on the matter were still under deliberation. Earlier reports had said that India was looking at limiting imports of laptops, tablets and personal computers starting January. The speed at which the 5G network is expanding, it will be there across the nation soon, Goyal remarked. He also issued an invitation to global investors to "come and invest in India". war any longer. About rising apprehensions over what form and shape Trump's tari policies could take, Goyal observed that the US president-elect is "a friend of India". Referring to recent news about Starlink's foray into the Indian skies, the minister clarified that no discussion has yet been held with Tesla on Starlink.
Source: Economic Times
Synopsis Russia and India achieved record-breaking bilateral trade of USD 66 billion in 2024. This represents a fivefold surge in five years. The countries aim for USD 100 billion in trade by 2030. Collaboration is expanding in sectors like railways, IT, and pharmaceuticals. Indian businesses have new opportunities in Russia. A proposed trade desk in Kolkata will further boost trade relations. A senior Russian diplomat on Wednesday said bilateral trade between the two countries has reached a record USD 66 billion in 2024, marking a fivefold increase over the past five years, with a 9 per cent rise in the first eight months of this year. The envoy said Russia and India are on track to achieve the ambitious USD 100 billion trade target by 2030, bolstered by expanding collaborations and diversified trade opportunities. "The recent dialogues between leaders of both countries on the possibilities of diversifying the trade basket and increasing the volume of investments in multiple sectors make the target of USD 100 billion by 2030 an achievable one," said Maim V. Kozlov, Russian Consul General in Kolkata, at an interactive session with members of the Bharat Chamber of Commerce (BCC). "India and Russia are more than strategic partners; we are all-weather friends. Our bond is built on mutual trust and shared interests, making the growth of our economic ties both natural and enduring," Kozlov added. Key sectors identified for enhanced cooperation include railways, pharmaceuticals, information technology, aviation, and cybersecurity Officials also highlighted emerging opportunities for Indian businesses in Russia, particularly after the withdrawal of Western brands following the Ukraine conflict. BCC, in a statement, said Kozlov also emphasised the need to deepen collaboration in critical areas such as Artificial Intelligence (AI), robotics, urban development, and critical metals like lithium, cobalt, and nickel, which are essential for next-generation industries. "The goal is to move beyond raw material trade and emerge as global leaders in technology-driven sectors," he added. BCC senior vice-president Naresh Pachisia requested Kozlov to initiate the setting up of a trade desk at the Russian Federation in Kolkata, given the emerging trade and investment developments. "This will play a pivotal role in facilitating business networks between Indian businesses and their Russian counterparts." he added.
Source: Economic Times
Synopsis India is seeking assurances from the European Union that future non-tariff barriers won't harm its interests during ongoing free trade agreement negotiations. India raised concerns about measures like the Carbon Border Adjustment Mechanism, emphasizing market access for goods, services, investment, and government procurement as key priorities. New Delhi: India has sought certainty from the European Union that the bloc will not impose new non-tari barriers in future hurting the country's interests. India's insistence on such an assurance comes as the two sides assess the progress of their free trade agreement (FTA) negotiations, which restarted two years ago. "We have said that any new regulations may bring uncertainty for us. This is something they recognise and agree with " said an official.
Source: Economic Times
The trade between India and France can grow much “faster and bigger” from the current $15 billion given the strength of the two economies, Union Commerce and Industry minister Piyush Goyal said on Wednesday. The Union minister called for more collaboration between the two countries in five fields including agriculture and food processing, renewable energy, aerospace and defence, automobile and electric vehicles (EVs) and digital technology. Goyal said that trade between the two countries reached $15 billion in the financial year 2024 (FY24), with Indian exports at about $7 billion and imports at $8 billion... “pretty much a balanced trade, yet if I may dare say something which is quite suboptimal given the strength of our two economies, something which we should collectively work towards to make it grow much bigger, better, much faster.” India has been rapidly expanding its defence sector and the Centre is encouraging companies from across the world to manufacture in India providing them 100 per cent ownership of their companies, Goyal said at the Asia Pacific Commission (APAC) 2024 Forum organised by the French Foreign Trade Advisors. He called for a greater collaboration with France in the defence sector and also underlined that India’s robust patent-protected regime does not insist on technology transfer. India is the world’s largest aviation market with 1,500 planes ordered with the capability of taking the order up to 2,000, the Union Minister said, while asking the French aviation sector to explore opportunities to set up manufacturing facilities in India. “Both countries also have the potential to co-innovate technologies and create a sustainable mobility revolution in India,” Goyal said. France is the 11th largest foreign direct investor for India and over 750 companies have its presence here, while 70 Indian companies working in France are contributing to employment generation and skill development.
Source: Business Standard
The new World Trade Organisation (WTO) Global Value Chains (GVCs) Sectoral Profiles on the textiles and clothing sector notes similarities in the value-added patterns of China and India—the sector's largest players—with the domestic content of their exports amounting to 89.1 per cent and 83 per cent respectively in 2022.
Overall, China accounted for more than 40 per cent of the value added contained in global exports from this industry in 2022, underscoring the dominance of Chinese industries along the value chain. The two economies increased their domestic capacity by more than 9 per cent on average from 2017 to 2022. In contrast, several South-East Asian economies sourced a high share of their value-added exports from foreign suppliers, notably Vietnam (64 per cent foreign value-added in its total exports of textiles and clothing), Cambodia (58 per cent) and Indonesia (49 per cent). Estimates show the industry generated 36.4 per cent of the value added in textiles and clothing exports in 2022. The textiles and clothing industry represented 3.7 per cent of world merchandise exports in 2022. Asia is the world’s top producer of textiles and clothing, representing 70.6 per cent of world exports in 2022—a share that has increased by 11.2 percentage points since 2017. About 80 per cent of Asia’s exports were regional in 2022. Europe’s share decreased by 1.8 percentage points during the same period. In the continent, the regional value-added content in exports was estimated at 65 per cent, the lowest rate of all regions, highlighting Europe’s need for global sourcing of raw materials. In Europe, the combined domestic value-added content from Italy and Turkiye, the two main exporters, reached more than 30 per cent of the total value-added exports from the region in 2022. Turkiye significantly increased the domestic content in its textile and clothing exports, rising by an average of 10.9 per cent between 2017 and 2022. South American exporters had high shares of domestic content in their textiles and clothing exports, with Brazil, the largest exporter in the region, recording 82.9 per cent in 2022. However, since 2017 the country has increasingly relied on imported intermediate goods to produce its exports. Vietnam had the highest rate of foreign inputs in textiles and clothing exports in 2022, estimated at 64.2 per cent. Among the top exporters of textiles and clothing products, Bangladesh and India showed the largest increase of foreign value-added content from 2017 to 2022, reaching 20.7 per cent on an annual basis for Bangladesh and 23.2 per cent for India. A third of Japanese textile and clothing exports in 2022 consisted of advanced textiles sent to foreign partners, the WTO report added.
Source: Fibre2fashion
Synopsis India's increasing protectionist policies risk escalating trade tensions with the US, particularly in the booming e-commerce sector. Local retailers' concerns about MNC dominance are prompting government intervention, but US retaliation could harm Indian exports and jobs. A balanced approach is crucial to protect local interests while fostering foreign investment and economic growth. Increasing protectionist policies by India could threaten to upset the delicate balance of international trade relations, the world watches with bated breath. The US, already vocal about India's trade practices, might retaliate with taris on Indian goods, affecting exports, and livelihoods. Indian ecommerce is at a crossroad with local retailers up in arms against MNCs, particularly those from the US. The recent reported actions against ecommerce vendors and players have sparked concerns about the impact on the domestic market. India’s ecommerce market is set to grow to $325 bn, and the digital economy to reach $800 bn by 2030, driven by increasing internet penetration, low-cost smartphones, and GoI initiatives like ‘Make in India’ and ‘Startup India’. This growth has attracted MNCs like Amazon and Walmart, which have invested heavily in the Indian market. Local retailers are worried about the dominance of MNCs in the ecommerce space, which they believe threatens their livelihoods. They argue that these companies enjoy unfair advantages, such as access to cheap capital, advanced technology, and global supply chains. Retailers are seeking government intervention to level the playing eld. Donald Trump’s re-election has significant implications for India-US trade relations. During his first term, Trump imposed taris on Indian goods, steel and aluminium, and terminated India's preferential market access, Generalised System of Preferences (GSP) -- alleging India has not given the US ‘equitable and reasonable access to its markets’. The US administration is likely to prioritise American business interests, which could lead to increased tensions with India. During his first presidency, Trump said Harley-Davidson executives informed him of the 100% tari imposed on their motorcycles by India. Any resistance from India may be dealt with an iron-sted manner, potentially harming the country's ecommerce industry. The US has been vocal about India's trade practices, and retaliation could be on the cards. Imagine a scenario where US companies with significant investments in India, are forced to reevaluate their presence. The consequences would be far-reaching, affecting not just business but also diplomatic ties. A trade war could be a challenge to India's economy. The US could impose taris on Indian goods, affecting exports and ultimately, the lives and livelihoods of millions as it has a history of playing hardball, as seen during Trump's first term. The stakes are high, and India must tread carefully. Beyond diplomatic fallout and economic losses, there's a human cost to consider. Jobs will be lost, and consumers will suer as prices rise due to taris and trade restrictions. The very people India's policies aim to protect – small retailers and local businesses – might end up bearing the brunt. By adopting a balanced approach, India can protect local interests while attracting foreign investment, promoting economic growth, and maintaining diplomatic harmony. GoI must balance any protectionism with the need for foreign investment. While concerns raised by CCI must be addressed, it shouldn't escalate into a witch-hunt by investigative agencies, creating fear and deterring foreign investment. India should engage with key stakeholders to address concerns and find mutually beneficial solutions. An inclusive approach and focus on clear regulations, which are both transparent and predictable, should ensure capital in-ow benefitting the Indian economy in the future.
Source: Economic Times
Customers can now recycle their clothing and textiles more easily thanks to Primark’s extension of its Textile Takeback Scheme to its Portuguese locations. This programme encourages consumers to repurpose their used clothing and other products, such as bedsheets, as part of the brand’s sustainability goal. The program has now made its way to Portugal after achieving success in the UK, Ireland, Austria, Germany, and the Netherlands. In Primark stores, customers can deposit home textiles, including towels and bedsheets, as well as apparel, accessories, and shoes of any brand and in any condition into the collecting boxes. Yellow Octopus, Primark’s recycling partner, will gather and sort these products to determine whether they may be recycled or used again. The money raised by the Textile Takeback program will be given to UNICEF, Primark’s international partner, to help underprivileged children get life-saving emergency aid as well as improved access to healthcare, education, water, and hygiene. As part of its broader ambition to being a more sustainable and circular business, Primark has expanded its Textile Takeback Scheme to include its global store base. “We are thrilled to expand our Textile Takeback program into Portugal, making it simpler for our customers to donate their gently used clothing and textiles,” said Lynne Walker, Director of Primark Cares. “Giving more clothing a second chance at life is the goal of our Textile Takeback program’s expansion to our 11 locations around Portugal.” Primark stated earlier this year that it will invest more than US $ 41.91 million in Portugal, which would entail expanding its well-liked Colombo store in Lisbon and creating four new stores in four new locations. Primark Portugal will expand to 14 stores as a result of this investment, adding more than 30 per cent to its selling space and adding more than 500 new employees nationwide.
Source: Apparel Resource
The Indonesian Fibre and Filament Yarn Producers Association (APSyFI) recently said the rise in value-added tax (VAT) beginning January 1 from 11 per cent to 12 per cent will lead to additional costs for producers that will be passed on to consumers. "This burden will cascade down the supply chain until it ultimately falls on consumers. Consumers will reduce their spending or shift to cheaper imported goods," its chairman Redma Gita Wirawasta said. He cautioned that such a scenario would further pressure on the already struggling textile and textile product (TPT) industry. To mitigate the impact, he suggested the government postpone the VAT hike and focus instead on optimising state revenue through more efficient policies. "The government should hold off on this plan. The Ministry of Finance seems to be getting complacent, with many pending tasks that could significantly increase state revenue if the Tax Office and Customs worked more diligently," a release from the association quoted Wirawasta as saying. Chairman of the Indonesian Textile Association Jemmy Kartiwa Sastraatmaja has also expressed his concern about the weak purchasing power of the masses now. "The increase to 12 per cent VAT will undoubtedly add pressure to consumer purchasing power. We strongly hope the government will reconsider and postpone this decision," Sastraatmaja said. If the issue of illegal imports of TPT is not addressed, it will worsen the situation, he noted. “Illegal imports are cheaper, and buyers will gravitate toward these goods without considering whether VAT has been paid on them or not," Sastraatmaja explained.
Source: Fibre2fashion
The Lekki Textile and Garment Special Economic Zone project in the Eyin-Osa area of Epe in Nigeria’s Lagos state will generate 5,000 direct and over 20,000 indirect jobs when operational, according to Olufemi Ogunyemi, managing director of the Nigeria Export Processing Zones Authority (NEPZA). The project will serve the export markets of the South-West region, he said. “There are many benefits to gain from the SEZ, including employment generation, especially to the local community, the opportunity for backward linkage, improvement of infrastructure network around the project, and others too numerous to mention now,” he was quoted as saying by domestic media outlets. He said the project was in line with the objectives of the government’s Economic Recovery and Growth Plan.
Source: Fibre2fashion
Synopsis Morgan Stanley's analysis suggests India and Japan are relatively insulated from President-elect Trump's tariff threats, with Japan particularly well-positioned. While India faces greater exposure, the impact on growth is estimated to be moderate. However, broader tariff implications for Asia remain a concern, emphasizing the need for diversified trade partnerships. India and Japan are relatively shielded from the risks posed by US President elect Donald Trump’s taris, according to a recent analysis from Morgan Stanley. The investment bank expects structural tailwinds and the continuation of favourable policy mixes in both Asian countries to help offset the potential headwinds posed by rising taris. For Japan, Morgan Stanley's team noted that about 70 per cent of Japanese products were exempted from taris imposed by the United States, primarily because they were not easily replaceable. The exemption is seen as a significant advantage, enabling Japan to avoid the worst impacts of US tari policies. Read Also: Several tariff tidal wave may hit China as Trump threatens Round 2 of trade war; Morgan Stanley makes predictions On the other hand, Trump recently labelled India as "the biggest charger of taris," referring to the country's relatively high tari rates on imports from the US. According to World Trade Organization (WTO) data, India's tari rate on US imports increased to 9.5 per cent in 2022, although it has since rolled back retaliatory taris on key US products like apples and other agricultural goods in September 2023. The international brokerage's Chief Economist for India, Upasana Chachra, estimates that a 10 per cent increase in taris on imports from India could lead to a 30 basis point (bps) reduction in India's growth. This estimate, however, does not account for the indirect impact that higher taris could have on corporate confidence and capital expenditure (capex). The concerns arise amid President-elect Trump’s broader pledge to impose taris on the US' three largest trading partners—China, Canada, and Mexico. If carried out, the proposed taris would target a broad range of industries, including oil, natural gas, agriculture, and manufacturing. Such measures could disrupt long-established trade patterns and global supply chains, affecting not only China but also other key global economies. Meanwhile, as the US looks to recalibrate its trade relationships, Asia’s reliance on the US market remains a double-edged sword, noted Morgan Stanley. While the region continues to benefit from strong export growth to the US, it still faces growing risks from trade disputes and tari policies aimed at narrowing the trade deficit. For Asian economies, particularly those with large surpluses such as Vietnam, Japan, Taiwan, and South Korea, the ability to adapt to these shifting trade dynamics will be critical in maintaining stable growth. In this context, Asia’s policymakers will need to find ways to diversify their trade partners and reduce reliance on the US to butter against the risk of tariff induced slowdown.
Source: Economic Times
