GUNTUR: Union Minister of State for Rural Development and Communications, Pemmasani Chandra Sekhar, has assured textile manufacturers of addressing their challenges, including the development of a textile park and securing a 50% subsidy through the Central government. He pledged to take up the matter with Union Minister of Textiles Giriraj Singh. Chandra Sekhar, accompanied by local MP Lavu Sri Krishna Devarayalu and MLA Prathipati Pullarao, visited the textile park at Gopalavaripalem near Chilakaluripet in Palnadu district recently. During their visit, they reviewed the current state of the park and explored measures to revitalise the textile sector. Highlighting the ongoing ginning, spinning, and fabric production operations, the Union Minister emphasised the importance of bolstering output and job opportunities by offering a 50% subsidy to encourage greater participation in textile production. He noted that the park’s output is currently operating at just 50% of its potential. Addressing the concerns of local cotton farmers, Chandra Sekhar acknowledged their struggles with inadequate irrigation facilities. He stressed the need for providing quality seeds and fertilisers to improve crop yields, which would directly benefit the availability of raw materials for the textile industry. It may be recalled that in 2014, the Union government announced the establishment of multiple textile parks nationwide, allocating two such parks to the State. Local industrialists proposed to set up 61 units in the park, including five weaving processing units, 54 weaving units, and two garment manufacturing units. A 30% capital subsidy was also declared by the Centre to support the initiative. The park was envisioned to stimulate industrial growth and generate direct and indirect employment for 6,000 people. However, despite these plans, progress has been slow. Rising costs have limited development, with only nine units currently operational, employing just 400 workers. Local stakeholders are optimistic that the promised measures, including subsidies and improved farming support, will expedite the park’s full-scale operation.
Source: The New Indian Express
The Minister of State for Textiles, Pabitra Margherita, underlined the Government’s steadfast commitment to giving India’s youth the knowledge and resources they need to guide the country towards a ‘Viksit Bharat’. Speaking at a news conference in New Delhi, the Minister emphasised that skill development is a government priority under Prime Minister Narendra Modi and that it will help India progress. He also described the measures being taken to establish a US $ 30 trillion GDP. He also highlighted the Ministry of Textiles’ initiatives, such as the SAMARTH Scheme, which offers training to increase candidates’ employability and productivity in order to meet the demands of the changing textile industry. Through the SAMARTH Scheme, the Textile Ministry promotes skill development by offering premium looms and yearns at a discounted rate. Regarding skill development, he highlighted that the Textiles Ministry is making great efforts to carry out the Samarth Yojana, and that 3.48 lakh beneficiaries have received training—of whom 79 per cent have been placed—and that 3.6 lakh women have received training in total. 88 per cent of the beneficiaries of the Samarth Program, which is run by the Textile Ministry and Dakshta Aur Kushalta Vikas, are women. Of these, 26 per cent, or 90,320, are members of the Scheduled Caste, and 12 per cent, or 42,857, are members of the ST group. The National Technical Textile Mission and the award for research and entrepreneurship for potential innovators in technical textiles were emphasised by the MoS. Startups are encouraged by the Textiles Ministry to conduct research and exercise initiative in the field of technical textiles.
The Ministry of Textiles is also working on start-up projects to produce technical textiles. For 12 startup initiatives, the Textiles Ministry has already approved US $ 741,000. The significance of the five “Fs”- farmer, fibre, factor, fashion, and foreign, was underlined by the Minister. According to Pabitra Margherita, the textile sector employs about 4.5 crore people, making it the second-largest employer after agriculture. The Ministry of Textiles has set a goal of reaching 10 crore people by 2030. He added that the Ministry has set a goal of US $ 350 billion by 2030, and the textile industry’s whole market size is roughly US $ 165 billion.
Source: apparel Resource
Patna: In a bid to make Bihar a prominent hub for textile and leather industries with a focus on sustainable and eco-friendly practices, a delegation from the department of industries recently visited Tamil Nadu, one of India's leading industrial states, to study successful models and explore opportunities for collaboration. The delegation visited Tiruppur, a global centre for textile manufacturing, and interacted with industry leaders and experts. The focus was on understanding advanced technologies, efficient manufacturing processes and sustainability practices that have propelled Tiruppur to global prominence. Alok Ranjan Ghosh, Bihar's director of industries, said, "Our visit to Tiruppur equipped us with knowledge to replicate successful models in Bihar. By enabling a conducive environment through infrastructure, policy support and incentives, we aim to transform Bihar into a hub for textiles and generate large-scale employment opportunities." Sustainability is at the heart of Bihar's industrial ambitions. In line with this, the delegation also visited Ranipet in Tamil Nadu to study the ‘zero liquid discharge' (ZLD) plant. Officials there demonstrated how tannery wastewater is treated and 85% of it is recycled for reuse. Such innovative technologies could play a vital role in Bihar's emerging leather sector. The delegation held discussions with Selvam, executive director of the Council of Leather Exports (CLE) in Chennai, to explore growth opportunities in Bihar's leather industry. The state is positioning itself to attract investments by offering facilities like plug-and-play infrastructure. For instance, BIADA recently allocated 72,000sqft of industrial sheds to R K Industries, a 50-year-old garment manufacturing company catering to premium global brands, at Sikandarpur Industrial Area in Patna's Bihta. The Bihar govt's multi-pronged strategy includes improving industrial infrastructure, adopting green technologies and implementing industry-friendly policies.
Source: Times of India
India’s thriving textile industry marked a significant milestone at the two-day Bharat Tex London roadshow event. The event highlighted the technological transformation happening in the Indian textile industry and the United Kingdom as a crucial market for Indian textiles and apparel, with significant growth potential. Chairman of Apparel Export Promotion Council (AEPC), Sudhir Sekhri, highlighted that the UK is a key market for Indian textiles and apparel, with exports reaching US $ 1.2 billion in 2023 gaining 6.14 per cent of the textile and clothing market in the United Kingdom. Compared to the same period the previous year, RMG shipments to the UK increased by 9.4 per cent during the April–October 2024–25 period. UK brands such as Marks & Spencer, Burberry, Dunhill, Clarks, Primark, Next, Charles Tyrwhitt, JW Anderson and fast fashion brands like Primark, Asos, and Boohoo are sourcing high-quality raw materials from India and also look forward to innovative solutions in the Indian industry. Trade Advisor at the Ministry of Textiles, Shubhra, highlighted the Government’s commitment to the sector through initiatives like the Production Linked Incentive (PLI) Scheme and PM MITRA Parks. She emphasised India’s potential to become a global textile powerhouse, particularly in sustainable and ethical production. Members of the team met with Vikram Doraiswamy, India’s High Commissioner to the UK. The members of the group also talked on a number of topics pertaining to FTA, joint ventures, commerce, etc. The High Commissioner offered perspectives about the future. He gave his word that UK textile companies are eager to learn more about Indian prospects and expand their cooperation.
The event was organised by AEPC and attended by Shubhra, Trade Advisor from Ministry of Textiles, Sudhir Sekhri, Chairman AEPC, Premal Udani, Chairman, Export Promotion Committee of AEPC and Roger Gilmartin Sr. Associate, Gherzi Consulting along with attendees from various reputed brands, retail chains and research bodies including textiles associations, across the fashion industry.
Source: Apparel Resource
Regarding the development of the 1,141-acre PM MITRA Mega Textile Park in Vansi Borsi, Navsari district, South Gujarat, a review meeting was held at Surat’s Circuit House. Union Textile Minister Giriraj Singh made critical remarks at the discussion and urged state and Central government representatives to move the project along quickly. In order to value land and assign plots to entrepreneurs, the Minister directed the establishment of a price committee. He assured Central and State officials that the PM MITRA Park project would be completed on time and underlined that he would assess its development every 15 days. Central and State Government representatives evaluated the PM MITRA Park’s development during the review meeting, which was presided over by Giriraj Singh. They directed officials to get these projects up to a working level after reviewing duties such as boiler steam, common effluent treatment plants, land levelling, water and electricity delivery, and plug-and-play facilities. The Minister underlined that Surat is the centre of the textile industry and that it has a distinct worldwide character. Millions of people now rely heavily on the industry for their jobs. By 2030, the Central Government wants the nation’s textile industry to generate US $ 350 billion in revenue. The 1,141-acre mega-integrated garment park in Vansi Borsi is expected to generate new jobs throughout the state of Gujarat and South Gujarat. The textile sector in Gujarat and the nation as a whole would benefit from it as well. A comprehensive textile value chain, encompassing spinning, weaving, processing, dyeing, printing, and clothing production, will be established within the park. The Minister underlined that the Government is dedicated to speeding up the work, eliminating any issues, and meeting all conditions for the park’s construction in accordance with the Prime Minister’s aim to speedily establish the park.
Source: Apparel Resource
Patna, The Bihar government is taking ambitious steps to position the state as a thriving hub for textiles and leather, aiming to generate large-scale employment and attract significant investments. Senior officials underscore a commitment to fostering an enabling environment through policy support, incentives, and modern infrastructure. A delegation from Bihar’s Department of Industries recently visited Tamil Nadu, a leading state in textiles and leather, to study advanced practices and forge collaborations. The team explored Tiruppur, a global textile manufacturing hub, gaining insights into cutting-edge technologies and efficient practices. Alok Ranjan Ghosh, Director of Industries, emphasised the importance of replicating successful models, stating, “The visit has equipped us with critical knowledge to transform Bihar into a textile powerhouse and create employment opportunities.” The delegation also visited Ranipet to observe the zero liquid discharge (ZLD) technology at the Ranitec Common Effluent Treatment Plant. These innovative methods, which recycle 85 per cent of tannery wastewater, hold promise for Bihar’s emerging leather sector. Discussions with Selvam, Executive Director of the Council of Leather Exports, further strengthened prospects for the state’s leather industry. In its bid to attract investors, the government will host the Bihar Business Connect 2024 in Patna from December 19-20. This event aims to surpass the Rs 50,000 crore investment proposals secured in the 2023 edition, which saw 278 companies signing MoUs worth Rs 50,500 crore. Industries Minister Nitish Mishra expressed optimism about the summit, stating, “We are confident that this year’s meet will mark the beginning of a new industrial era in Bihar.” Promotional roadshows across major cities such as Delhi, Mumbai, and Kolkata have already set the stage for this landmark event. Key sectors like food processing, textiles, and tourism are poised for significant investment, further boosting Bihar’s industrial growth. By leveraging innovative practices and fostering collaborations, Bihar is charting a path to emerge as a crucial player in India’s textile and leather industries.
Source: KNN
Synopsis US President-elect Donald Trump's threat to impose 100% customs duties on BRICS countries if they replace the US dollar is deemed unrealistic by think tank GTRI. They suggest India should focus on developing a local currency trading system. Such tariffs would harm American consumers, disrupt global trade, and provoke retaliation from trading partners. US President-elect Donald Trump’s statement to BRICS countries to impose 100% customs duties if the group would replace the US dollar is unrealistic, and India should focus on developing a workable local currency trading system, think tank GTRI said Sunday. It said that the taris of this scale would harm the American consumers only as it would push prices on imports, disrupt global trade, and risk retaliation from key trading partners. “Trump’s threat to impose 100% taris on countries adopting a BRICS currency is unrealistic and more symbolic than practical. For India, the prudent approach is to focus on making local currency trading workable by establishing a transparent and open currency exchange,” said GTRI Founder Ajay Srivastava. Emphasising that it is the actions of the US that have pushed many countries to seek alternatives to the US dollar, GTRI said: “The US has a history of leveraging its influence over global financial systems, such as the SWIFT network, to impose unilateral sanctions”. India’s best interests lie neither in the domination of the US dollar nor in fully adopting a BRICS currency at this stage, Srivastava noted, adding that no single country, including the US, can unilaterally dictate global economic policies without facing repercussions.
Source: Economic Times
Net goods and services tax (GST) collections rose by 11.1 per cent year-on-year (Y-o-Y) to Rs 1.63 trillion in November amid sharp drop in refunds, according to provisional data released by the government on Sunday. However, sequentially net GST collections were below the October level of Rs 1.68 trillion with 7.9 per cent growth. The latest GST data comes ahead of the all-powerful GST Council meeting on December 21. The Council is expected to take up rationalisation of indirect tax rates among other issues. The gross GST collection, which is the amount before adjusting for refunds, grew by 8.5 per cent in November to Rs 1.8 trillion. November marks the ninth consecutive month in which collections exceeded Rs 1.7 trillion. In November, domestic refunds contracted 19.6 per cent while total refunds including import refunds (6.8 per cent) led to an 8.9 per cent dip to Rs 19,259 crore. However, total refunds during the April-November period rose 10.2 per cent to Rs 1.7 trillion. Cumulatively, from April through November, the growth in total gross GST collection remained in single digit of 9.3 per cent, down from the 10.1 per cent growth recorded until April-August period. To be sure, the November figures reflect goods and services transactions related to October. Experts anticipate a slowdown in tax collections over the next four months considering the recent seven quarter low GDP growth at 5.4 per cent for the July-September period. The global geopolitical scenario and potential consumer spending cuts are also expected to further exacerbate short-term economic pain. “While the recent surge in tax collections, especially in states like Delhi, Maharashtra, and Karnataka, can be linked to the festival season, it is too early to celebrate this as a broader economic trend. In fact, month-on-month collections have declined, even after the festive boost,” said Saurabh Agarwal, Tax Partner, EY India. Net GST collections came in at Rs 1.68 trillion in October, marginally higher than November print. The double-digit GST collections in states like Maharashtra (17 per cent), Karnataka (15 per cent), Bihar (12 per cent), Uttarakhand (14 per cent) and Jharkhand (12 per cent) indicate the robust consumption in these states accompanied by the measures undertaken by tax authorities to improve compliance and crack down on evasion. However, the single digit growth in some large states like Haryana (2 per cent), Punjab (3 per cent), Uttar Pradesh (5 per cent) & Madhya Pradesh (5per cent), West Bengal (6 per cent), Tamil Nadu (8 per cent), Telangana (3 per cent) as well the negative growth in Rajasthan (-1 per cent), Andhra Pradesh (-10 per cent), Chhattisgarh (-1 per cent) would be an area of concern as these states have considerable economic impact. “The import GST revenue growth of 6 per cent also backs foreign trade data which indicates slower growth of non-petroleum imports. The projected GDP growth of 7 per cent in FY25 augurs well for GST collections in the remaining four months of the current fiscal year, considering the fact that the collections in the first 8 months of FY25 have exceeded that of FY25 by more than Rs 1 trillion and are ahead of the budget estimates for FY25,” said MS Mani, Partner, Deloitte India.
Source: Business Standard
On a year-to-date (YTD) basis, Adani Ports handled 293.7 MMT of total cargo, recording a growth of 7 per cent on-year. Adani Ports and Special Economic Zone (APSEZ) on Monday announced that it handled 36 MMT of cargo during November 2024. The growth in cargo, it added, was primarily driven by containers, which was higher by 21 per cent in comparison to the same period of last year. On a year-to-date (YTD) basis, Adani Ports handled 293.7 MMT of total cargo, recording a growth of 7 per cent on-year. In a regulatory filing, the company said that the growth was supported by containers, which posted a rise of 19 per cent YoY, followed by liquids & gas, which went up by 7 per cent YoY. APSEZ announced that its YTD November 2024 logistics rail volume recorded a growth of 10 per cent YoY to 0.42 million TEUs and GPWIS volumes grew by 15 per cent YoY to 14.2 MMT. During the previous month, that is, for the month of October 2024, APSEZ had announced that it handled a total of 37.9 MMT cargo, keeping the company in the glide path for the guided yearly volume. On a year-to-date (YTD) basis, it handled 257.7 MMT of total cargo, up 8 per cent on-year. Earlier in October, Adani Ports had released its fiscal second quarter earnings with profit at Rs 2,445 crore, posting a growth of 39.90 per cent year-on-year. The profit growth, it had said, was recorded amid an increase in the cargo volumes handled by the company and “new capacity additions progressing as planned in Gopalpur, Vizhinjam, and Colombo”. During the quarter, the company handled a total cargo of 111 million metric tonnes, up 10 per cent YoY. This comes just days after the US Department of Justice and the Securities Exchange Commission (SEC) indicted Gautam Adani, Sagar Adani and Vineet Jain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions on the basis of false and misleading statements. Gautam Adani, on Saturday, in his first public event since the indictment by the US court, said every attack made the group stronger and every obstacle was a stepping stone for more resilience. “Less than two weeks back, we faced a set of allegations from the US about compliance practices. This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger,” he said.
Source: Financial Express
The country imported 4.2 million barrels of crude oil per day in November, largely unchanged from last month, with Russia, Iraq, Saudi Arabia, United Arab Emirates, and United States, being the top five suppliers. Russia remained the largest crude supplier to India in November, accounting for 38% of India’s total crude oil imports. However, imports from the country registered a marginal decline of 4% to 1.60 million barrels per day, against 1.67 million barrels per day in October, data from Vortexa showed. The country imported 4.2 million barrels of crude oil per day in November, largely unchanged from last month, with Russia, Iraq, Saudi Arabia, United Arab Emirates, and United States, being the top five suppliers. While the share of crude oil sourced from Iraq and Saudi Arabia fell in November, the share of crude imports from the US increased. Imports from Iraq declined by 20% on month at 699,029 barrels per day in November, as per the data. Imports from Saudi Arabia also fell by 8% to 568,236 barrels per day last month, from 614,598 barrels per day in October. “Iraq’s share of Indian imports fell to 17% this month, down from 20% last month. India’s import share from the rest of the top 5 suppliers remained relatively stable, with around 1% change month-on-month,” said Xavier Tang, market analyst at Vortexa. “India has been maximising its imports of Russian crude, as delivered Russian crude prices are still cheaper than most Middle Eastern grades,” Tang noted. “If Middle Eastern producers reduce their prices to stay competitive, Indian refiners could adjust their imports in favour of Middle Eastern crude.” India’s crude imports are also dependent on the country’s domestic oil demand and export margins. While the domestic demand is seasonally the strongest in the fourth quarter, and slows thereafter, clean product export margins outlook for Indian refiners is leaning towards more bearishness, amidst well-supplied Asian and European markets, according to Tang. “This may pose downside risks to India’s crude imports in the months ahead,” he said. Meanwhile, the country’s crude imports from the US is likely to remain unaffected under the new administration, analysts say. US domestic production is projected to increase next year, as part of the new drilled and completed wells coming online. “The US incoming president, Donald Trump, has announced that he intends to impose 25% tariffs on imports from Canada and Mexico. This would greatly increase the cost of Canadian heavy crudes, which are transported via pipeline into the US, of which, some are exported to India. With the new import tariffs, Canadian heavy crude will almost be economically unattractive to Indian refiners, as such, we could expect to see lower exports of these crudes from the US Gulf to India,” said Tang. “The mainstream US crude will likely remain unaffected, and their exports to India will still be driven by economics.” While Trump has announced that he plans to expedite drilling permits on federal land, analysts at Vortexa believe that this would have limited impact on US crude production in the near-term. According to the data, India’s private refiners bought 1.57 million barrels of crude oil per day in November, while public downstream companies imported 2.65 million barrels of crude oil accounting for 63% of the total imports. The government is now expecting a term deal between Indian refiners and Russia for supplies of crude oil to conclude by next year. “They (Indian refiners) were talking jointly. I do not have an update as now everything has been overtaken by this change in crude oil prices. The discussion (with Russia) is ongoing,” a government official had earlier told reporters. The country’s dependency on import of crude oil during April to October of the current fiscal rose to 88.1%, up from 87.6% in the corresponding period of FY24, amid rising demand and stagnant domestic production, as per data from the Petroleum Planning and Analysis Cell. Upstream companies produced 16.7 million tonnes of crude oil during the period, down from 17.3 million tonnes in the same period last fiscal. Despite the government’s efforts to boost production and reduce dependency on imports, the production has remained stagnant over the last ten years. But now, as the country expects an increase in imports to meet the rising consumption, the domestic production, which has remained muted so far, is also expected to grow. State-owned Oil and Natural Gas Corp (ONGC) expects to ramp up oil and gas production from its KG-98/2 field by the end of this fiscal year. Presently, the field produces 25,000 barrels per day of oil and ONGC expects it to ramp up to 45,000 bpd by end of FY25. KG gas production is likely to reach 10 mmscmd by FY25 end, from the current ~2 mmscmd. The company has guided for oil & gas production of 44.9 million tonnes of oil equivalent in FY26 and 46.2 million tonnes of oil equivalent and FY27, respectively.
Source: Financial Express
US President-elect’s Donald Trump has threatened nine country BRICS bloc with 100% tariffs if they went ahead the plan to counter US dollar’s prominence in global transactions as a reserve currency, by creating alternatives. Trade experts, however, called the move not only counter-productive, but also impractical. India is key member of BRICS along with Brazil, Russia, China, South Africa, Ira, Egypt, Ethiopia and the UAE. BRICS nations are making an attempt to create either new currency like euro or back some other emerging ones to gradually replace the US dollar. Trump had called India a tariff king earlier, but this is the first time he indicated about any adverse tariff action against New Delhi after being elected as the 47th president of the US. Dollar’s dominance is one of the key impediments for emerging market economies, as they seek to enhance their share in world trade and tilt the economic gains from trade in goods and services, as well as capital flows, in their favour. Last week, India’s commerce and industry minister Piyush Goyal had allayed the fears about the adverse implications of Trump’s protectionist policies for India, citing the strong and growing ties between the two countries under prime minister Narendra Modi. The latest threat was delivered by Trump through a social media post and like similar threats he had issued to China, Canada and Mexico. Trump justifies the moves by quoting the US’s status as world’s biggest importer – inward shipments of the country stood at $ 3.17 trillion in 2023. “Trump’s threat to impose 100% tariffs on countries adopting a BRICS currency is unrealistic and more symbolic than practical. Tariffs of this scale would harm US consumers by raising prices on imports, disrupt global trade, and risk retaliation from key trading partners,” founder of Global Trade Research Initiative Ajay Srivastava said. The nine-nation grouping of which India is a founding member in its 16th Summit at Kazan in Russia last month the push was provided to the idea of trade settlement among members in local currencies. The members called for strengthening of correspondent banking networks within BRICS and enabling settlements in local currencies in line with BRICS Cross-Border Payments Initiative (BCBPI). Something concrete may emerge after further discussions in the coming months, officials had said after the summit. While the US dollar dominates global trade accounting for 90% of the transactions, other convertible currencies like Japanese yen, euro and British pound too are integral to global commerce. “The United States has not objected to their use. The proposed BRICS currency is simply an extension of these existing alternatives, aiming to facilitate trade among member countries and reduce over-reliance on a single currency.” Srivstava said. It is the US’ action that forced countries to look at alternatives to the dollar. The US has the history of leveraging its influence over global financial systems such as the SWIFT network for imposing unilateral sanctions. SWIFT—the Society for Worldwide Interbank Financial Telecommunication—is essential for secure and standardized international financial transactions. “By blocking countries like Russia and Iran from accessing SWIFT, the US has effectively weaponized the global financial infrastructure, forcing other nations to find alternative payment mechanisms to continue legitimate trade,” he said. It was after Russia was disconnected from SWIFT after the start of its war on Ukraine that the Reserve Bank of India (RBI) came up with a circular allowing invoicing and payment of international trade transactions in rupees. Around 20 Authorised Dealer (AD) banks in India have been permitted to open 92 Special Rupee Vostro Accounts of partner banks from over 22 countries to facilitate this trade. According to GTRI’s Srivastava imposing a 100% tariff on BRICS countries could backfire economically. “Imports into the US would simply shift to third countries, potentially increasing costs for American consumers without bringing manufacturing jobs back home. The US has become less competitive in manufacturing labor-intensive goods due to higher production costs, and tariffs are unlikely to reverse this trend,” he said Additionally, the global shift away from the US dollar is a complex process driven by economic diversification, not easily deterred by threats. Such rhetoric ignores the interdependence of global economies and oversimplifies the challenges in enforcing such drastic measures, Srivastava said.
Source: Financial Express
Six years after their imposition, the Section 301 tariffs under the US Trade Act of 1974 continue to significantly impact Chinese imports, especially in the textiles and apparel sectors. Initially implemented in 2018, these tariffs targeted 5,745 products, with rates increasing to 25 percent and an additional 10 percent tariff. The tariffs were aimed at addressing intellectual property theft and other unfair trade practices, as outlined by the US. In addition to the strain on the Chinese textile and apparel industries through these tariffs, the world has witnessed a shift in global textile supply chains, with US GSP textile beneficiaries and alternative sourcing destinations stepping in to fill the void. A 15 percent tariff was applied to imports of apparel, on top of the WTO’s Most Favored Nation (MFN) tariffs, which in 2018 averaged 14.4 percent for knitted apparel (HS Chapter 61) and 10.4 percent for woven apparel (HS Chapter 62). These tariffs were compounded by additional duties and anti-dumping measures aimed at specific Chinese companies and apparel products. This evolving scenario prompted discussions on which countries were poised to benefit from China’s declining apparel exports to the US. While several contenders were expected, Pakistan emerged as one of the potential South Asian players that could benefit.
Trade war’s toll on China’s textile exports to the US
Later in 2019, the US enacted the Uyghur Forced Labor Prevention Act (UFLPA) to counter alleged forced labor practices in China. Combined with tariffs and legislative measures, Chinese exports to the US have suffered significant losses: USD 5.4 billion in knitted garments (Figure 1a), USD 5.6 billion in woven garments (Figure 1b), and USD 425 million in home textiles To begin with, it is extremely urgent for Pakistani authorities to negotiate a trade agreement with the US to secure duty-free or reduced-duty access for value-added textiles assembled in Pakistan using US-origin cotton, before the opportunity slips through the cracks again.
Source: Business Recorder
KARACHI: Pakistan International Airlines (PIA) is set to resume flight operations on European routes soon after the EU aviation regulator lifted its ban on Pakistan’s flag carrier. The European Commission and European Aviation Safety Agency (EASA) imposed a ban on Pakistan’s national flag career in 2020, after a PIA plane crash in Karachi killed nearly 100, followed by a fake pilot licence scandal. The ban caused huge economic loss to the airline as it had to stop flight operations on its most lucrative routes in Europe and Britain. According to reports the ban cost the airline annual revenue of nearly $144 million. “PIA plans to approach the UK’s Department for Transport (DfT) for UK route resumption, as EASA clearance is a prerequisite for their decision,” PIA spokesman Abdullah Hafeez Khan told Reuters news agency. The UK authorities suspended permission for PIA to operate in the country after Pakistan started investigating the validity of pilots’ licenses after the deadly plane crash. Abdullah Hafeez Khan said the national airline hopes to resume flights to Europe, starting with Paris, within the next three to four weeks. He said once PIA gets approval for UK flights, London, Manchester, and Birmingham flights would be resumed. Before the suspension, PIA was the only Pakistani airline that offered non-stop flights to many European destinations from Pakistan. There are approximately 2.2 million Pakistanis in Europe. Around half live in the United Kingdom. Italy, Greece, France, Spain, Germany and Denmark also have large Pakistani communities. PIA and the government, which is aiming to sell a 60 percent share, had urged EASA to lift the ban. PIA spokesman said the company has sufficient cash flow to add new destinations. He said the decisions to lease new aircraft will be made after the government finalises privatisation discussions. The national flag carrier has a 23% stake in Pakistan’s local aviation market, the airline has agreements with 87 countries and key landing slots. As per the Foreign Office, the EU is one of Pakistan’s largest trading partners and a significant source of Foreign Direct Investment (FDI) in Pakistan. The EU accounts for a substantial share of Pakistan’s exports, particularly in the sectors of textiles and garments.
Source: World Echo
