Synopsis India's economy is projected to grow by 6.8% in 2024-25 and 6.9% in 2025-26, driven by urban consumption, services, and infrastructure investment. Despite a recent slowdown to 5.4% GDP growth in Q2 2023-24 due to weak manufacturing, S&P Global Ratings remains optimistic. They anticipate modest monetary policy easing and declining ination in the coming years. The Indian economy is expected to grow by 6.8% in 2024-25 and 6.9% in 2025-26, according to India Outlook by S&P Global Ratings. The economy is poised for robust growth in 2025, supported by strong urban consumption, steady growth in the service sector, and ongoing investment in infrastructure, the rating agency said on Tuesday. In the second quarter of the current nancial year, the gross domestic product (GDP) grew by 5.4%, marking a seven-quarter low, due to weak manufacturing and sluggish demand, according to the oicial data released last month. Manufacturing growth was recorded at 2.2%, down from 7% in the rst quarter. In the monetary policy meeting last week, the RBI revised its growth estimate for 2024-25 to 6.6% from 7.2% earlier. It also kept the policy rate unchanged at 6.5% for the eleventh consecutive time. "The scal impulse was slower, and pockets of weakness such as the urban middle class held back," said Vishrut Rana, Economist, S&P Global Ratings. He cautioned that manufacturing growth could pose some downside risk to the agency's forecast for 2024-25. S&P Global Ratings anticipates RBI to ease monetary policy modestly during 2025 as inationary pressures recede. It expects a policy rate of 6% in 2024-25 and 5.5% in 2025-26 Ination rate will decline to 4.5% in 2024-25 from 5.4% in the year before, the agency said. It will rise to 4.6% in 2025-26.
Source: Economic Times
Synopsis India launched 43 anti-dumping probes this year. These investigations target several countries including China and Russia. The government also supported startups. The Startup India Seed Fund Scheme helped over 2,490 startups. Over half of these startups have a woman director. The National Single Window System streamlined business approvals. Over 7.6 lakh approvals were processed through this system. The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has initiated as many as 43 anti-dumping investigations in 2024 so far on dierent products, Parliament was informed on Tuesday. The Directorate is an attached oice of the Department of Commerce, which conducts trade remedy investigations to counter the dumping activities by foreign industries. The countries against which these probes have been initiated included China, Russia, Taiwan and Japan, according to the information provided by Minister of State for Commerce and Industry Jitin Prasada in a written reply to the Lok Sabha. "In 2024, the DGTR has initiated 43 anti-dumping investigations, including the review investigation," he informed. In a separate reply, the minister said that as of October 31, 213 incubators have been selected under the Startup India Seed Fund Scheme (SISFS) with a total approved funding of Rs 902.74 crore and the authorised incubators have selected 2,490 startups for support under the scheme.
"As on 31st October 2024, out of the total 2,490 startups selected by the incubators for funding under the Scheme, 1,278 of these startups have at least one-woman director," he added. In another reply, the minister said currently, 32 central ministries/departments and 29 states/UTs are integrated with the National Single Window System (NSWS) with access to 277 Central approvals and 2,977 state approvals. "Additionally, the Know Your Approvals (KYA) module is live for 659 Central approvals and 6,353 State approvals to facilitate free ow and access of information for business enterprises. Till date, more than 7.6 lakh approvals have been applied through NSWS," he said.
Source: Economic Times
Synopsis Sanjay Malhotra's appointment as RBI Governor signals a potential rate cut in February, contrasting with outgoing Governor Das's stance. Analysts believe Malhotra's monetary policy will be more accommodative, prioritizing growth amid government pressure for countercyclical measures. Malhotra's views remain largely unknown, but his background suggests a focus on technology and straightforward communication. The appointment of Sanjay Malhotra as the new RBI Governor "cements" the possibility of a rate cut at the next policy review in February, analysts said on Tuesday. Outgoing Governor Shaktikanta Das was "sticking to his guns" on rates as seen at the December 6 meeting where the rate setting panel headed by him continued with a status quo on rates, they said. Monetary policy under Malhotra, who is also a career bureaucrat, will be "more accommodative", analysts at Japanese brokerage Nomura said, adding the rate cut at the February meeting is "cemented". The brokerage added that the growth-pushing rate cut is also warranted at the next meeting. Over the past few weeks, a "stark divide" seemed to be emerging between the government and the RBI on the need for countercyclical monetary policy, the brokerage said, pointing out that both Finance Minister Nirmala SItharaman and Commerce Minister Piyush Goyal had criticised the RBI for keeping policy tight. Domestic brokerage rm Emkay said it "does not rule out" a rate cut in February but will be more comfortable taking a rm call closer to the policy window. It noted that the decision to appoint Malhotra came down to the wire, and indicates the government's comfort on having a bureaucrat rather than a technocrat at the RBI's helm. Nearly all the analysts said that very little is known of Malhotra's economic views, and Emkay cited their discussions with bankers to note that he is straightforward in policy communication, and in his past role at the Department of Financial Services, he would push banks to adopt and focus on technology. "With the new Governor coming from the Ministry of Finance, market participants could be inclined to think that might lead to a stronger role for the government in monetary policy decisions," analysts at Swiss brokerage UBS said. Malhotra will have to balance growth risk and the recent spike in headline inflation, they said, noting that Das maintained RBI's autonomy, helped stabilise the relationship with the government, ensured financial stability (especially during the pandemic shock), and focused on financial inclusion and digital innovation. Malhotra's appointment comes as a surprise to the financial markets and added that this will be followed with the appointment of a new RBI Deputy Governor incharge of monetary policy to replace Michael Patra in January. With five out of six Monetary Policy Committee (MPC) members relatively new - three new external MPC members joined only in October 2024 - this could add volatility to the markets amid rising global uncertainties related to Trump administration tari proposals, it said. "..we maintain our view that a high real policy rate and softening growth could create room for the RBI to lower the repo rate by 0.75 per cent starting in Feb 2025," the brokerage said, adding that this view is irrespective of who is at the helm.
Source: Economic Times
We want to import some items from China and re-export them to USA after repacking and relabelling. Para 11.31 of the FTP includes repacking and labelling in the definition of manufacture. In that case, can I treat the goods as Indian origin and ask for a non-preferential certificate of origin?
No. Para 2.93(a)(ii) of the HBP lists certain activities that include repacking and labelling, which alone will not be adequate to confer the status of ‘Indian origin’ for the export goods. Therefore, you cannot treat the imported goods that are subject only to repacking or labelling as of Indian origin and ask for non-preferential certificate of origin.
What is the difference between rupee vostro accounts (RVA) and special rupee vostro accounts (SRVA)?
The balances in the RVAs are built through inward remittances in freely convertible currencies. Besides trade-related remittances, cross-border transfers of foreign exchange by individuals can be made through RVAs. Indian banks need no approval from the Reserve Bank of India (RBI) for opening RVAs for foreign banks. The balances in the RVAs can be converted into foreign currency without restrictions and used for payments within India or abroad without any special restrictions. SVRAs can be opened only with RBI approval. SVRAs can be used for settling import and export transactions expressed in Indian rupees. The balances in the SVAs can be utilised only for specified investments in India.
While applying for EPCG authorisation, we are required to give FOB value of exports made during the previous three financial years. Now, in the case of many exports, consignments payments may not have come when we apply for EPCG authorisations and so, we may not have the e-BRCs for such shipments. In that case, can we reckon the FOB value on the basis of value shown in the shipping bill, which may not be the actual FOB value realised?
Wherever e-BRCs are available, you can use the FOB values shown there. Where e-BRCs are not available, you can take the value shown in the shipping bill and work out the FOB value after deducting the freight, marine insurance, and other expenses incurred after shipment by you. You must discuss the methodology with your chartered accountant, who has to certify Appendix-5B, which is required to be submitted along with your EPCG application.
Our turnover is less than Rs 5 crores but still, we are considering a switch over to e-invoicing. What are the advantages of e-invoicing?
The main advantage of e-invoicing is that your GSTR-1 returns get prepared automatically from the available data and so the errors that can arise from manual entries while preparing the returns also get reduced. Secondly, your customer comes to know about your invoice immediately and so, getting an input tax credit is also not a problem. Third, your e-way bills can be generated using the same e-invoice data. Finally, your tax authorities also get the information immediately and such quick access to data helps better monitor and prevent fraud.
Source: Business Standard
The GST Council is expected to address several pivotal reforms focussed towards inverted duty structure, GST rate rationalization that will make an impact on the economy and meeting the goal of minimising cascading effect in GST.
The upcoming 55th GST Council meeting, scheduled to meet on December 21, 2024, is expected to address a range of significant issues that have been lingering for a considerable time. The GST Council is expected to address several pivotal reforms focussed towards inverted duty structure, GST rate rationalization that will make an impact on the economy and meeting the goal of minimising cascading effect in GST.
Reforms related to GST rate rationalization aims to reduce cascading effect of taxes by merging tax slabs, litigation revolving around the issue and other issues related to input tax credit (ITC), leading to construction of a fluid and effective tax environment. The primary concern is blockage of working capital due to accumulated ITC, leading to liquidity issues. This necessitates the need to rationalizing tax rates, ensuring lower tax rates for raw materials in comparison to final goods, streamlining of refund process to improve cash flow, and simplifying compliance requirements. Pursuant to the 45th GST Council, the Group of Ministers (GoM) Committee was established to address the issue of inverted duty structure in major sectors and undertake GST rate rationalization. This includes correcting the inverted duty structure to simplify the rate structure, reduce classification-related disputes, and enhance GST revenues. The GoM on Rate Rationalization was also tasked with reviewing instances of the inverted duty structure, aside from those already addressed by the Council, and recommending suitable rates to minimize instances of refunds due to the inverted duty structure.
GST rate rationalisation
Presently, 18% GST is applicable on premiums paid towards health and life insurance policies. It is expected that the GoM constituted in the 54th Council meeting to review the tax rates on insurance premiums will submit its report in the 55th Council meeting for discussion on eliminating the 18% rate on term insurance plans and health insurance policies, particularly for senior citizens and coverage plans up to INR 5 lakh. It is expected that GoM will strike a balance between exemption, reduction in rates and estimated revenue loss. A reduction in GST rate on health and life insurance is going to make insurance more affordable and accessible for the general public, particularly when penetration of insurance in India is just 1%, compared to the global average of 4%.
Further, there have been lot speculations going on wrt a new GST rate of 35% for specific goods such as aerated drinks, tobacco, cigarettes and related products. The proposed structure ensures that essential goods remain affordable, while luxury items and demerit goods like tobacco and alcohol are taxed at higher rate. This approach aligns taxation with social policy goals.
However, the CBIC on December 3, 2024 has clarified that GoM constituted on GST rate rationalisation has not yet submitted its recommendations to the GST Council. Therefore, speculations related to change in GST rates and new slab rates of 35% is totally false and pre-mature. Thus, what remains to be seen is whether the GST Council is going to give a definitive timeline towards correction of inverted duty rate structures and provide much needed relief for the masses owing to high GST rates on goods of mass consumption that have a direct impact on affordability of such goods within the public at large.
Taxability of Food Delivery Charges
In the recent past, the Directorate General of GST Intelligence (DGGI) had issued notices to major food delivery companies alleging huge GST liability on delivery charges collected from customers. Post which, the fitment committee was assigned the task of determining taxability of food delivery charges in relation to food ordered online through food delivery apps such as Zomato, Swiggy etc. It is expected that its recommendations will be placed for discussion in the next GST Council meeting. This is important since this will provide the much-needed clarity on the Council’s stand regarding taxability on food delivery charges and GST registration threshold for delivery partners which will definitely help resolution of the tussle between the revenue and this sector.
Inclusion of Petroleum Products
Presently, products (petroleum crude, high speed diesel, motor spirit, aviation turbine fuel, natural gas and alcoholic liquor for human consumption) are outside the ambit of GST despite numerous representations made by this sector. Further recently, Extra Neutral Alcohol has also been brought outside the purview of GST. Out of these, it is expected that discussion to at least include ATF and Natural gas under the purview of GST. This has been a focal point before every GST Council meeting since Petroleum and oil companies are advocating for including ATF and Natural gas under GST. By bringing ATF under GST, airline companies will take ITC on purchase of ATF and gas companies, city gas distribution network and industrial user companies will avail ITC of the GST applicable on procurement of natural gas, which will lead to potentially lowering their operational cost and increasing price efficiency. The Central Government is positive of its discussions with the State Governments about bringing Natural Gas and ATF under the purview of GST. Achieving this goal would help make the concept of ‘one nation, one tax’ closer to reality. The decisions and recommendations from the 55th GST Council meeting will be closely watched, given their potential to impact taxation, trade, and the overall financial landscape in India. Reforms in areas such as insurance premiums, GST rates could provide much-needed clarity and relief to businesses and consumers alike. As the Council deliberates on these critical issues, the outcomes will play a crucial role in shaping the future of GST in India, aiming to create a more streamlined and efficient tax system.
Source: Financial Express
Prime Minister Narendra Modi will meet with chief secretaries of states in Delhi on December 13-15 to prepare a common social and development agenda for higher economic growth, less than two months before the Budget for 2025-26. The conference of chief secretaries will be held in Delhi. Hundreds of attendees will represent the central government, all states/Union Territories, and domain experts. The broad themes for discussion in the presence of Modi include promoting entrepreneurship, skilling and employment ecosystem; manufacturing, MSMEs, informal employment, green economy, rural non-farm sector, circular economy, AI and renewable energy, among other issues about the social and economic development of the country, sources said. “During the deliberations, states will flag their key issues and their expectations from the Centre. Considering the broader ask of the states, the Centre will take policy action quickly,” a senior official said. The Centre, which is mulling ways to revitalise the manufacturing sector, with a new set of incentives, would be taking note of the suggestions of the states in this regard.“The concept being to bring all the states together with a platform for the exchange of ideas, the best practices from one state would also be shared with other states facing similar challenges for adoption,” the official added. While investments in a clutch of sectors are already being promoted via production-linked incentives, what is being looked at now is a broader scheme, where government assistance would be linked to employment generation and fresh investments, sources said.
Over the last two decades and more, India has been taking several policy steps intending to increase the share of manufacturing in its gross domestic product (GDP) to 25%. However, the share of the sector in GDP hasn’t risen and has been hovering around 16% since FY12. Working as Team India, the conference will lay the ground for collaborative action for higher growth with sustainability and the creation of jobs, another official said. With states’ input, the outcome of the chief secretaries’ conference will be acted on collectively by the Centre and states. Many of the issues would also be taken up in the Governing Council Meeting of NITI Aayog, where Chief Ministers and Administrators of all States and Union Territories would be present, so that an action plan can be finalized with the broad consensus at the highest levels.
Source: Financial Express
“Parivartan hi sansar ka niyam hai” – Change is the law of the universe. In line with this powerful message, India’s textile heritage is transforming to meet the needs of a changing world. Our journey in technical textiles isn’t just about fabric – it’s about weaving dreams, securing futures, and crafting a sustainable tomorrow for 1.4 billion Indians. Today, I share with pride how India’s technical textiles sector is revolutionizing lives across our nation. With 12 specialised segments such as Packtech, Indutech, Mobiltech, Clothtech, Hometech, Meditech, Agrotech, Buildtech, Protech, Geotech, Sportech, and Oekotech, each offering great opportunities. As the world’s fifth-largest technical textiles market, valued at $25 billion and projected to surpass $40 billion by 2030, India has seen remarkable export growth, rising from near zero in 2014 to $3 billion in FY 2023-24, with a target of $10 billion by 2030. Packtech, Indutech, and Mobiltech account for 70% of exports, highlighting India’s manufacturing strength, while the 229% growth in the Buildtech sector showcases expertise in specialized areas. Moving forward, India plans to expand exports across other technical textile segments, including Buildtech, Meditech, Agrotech, and other emerging sectors, while stimulating domestic demand through R&D, entrepreneurship, and sustainable practices. With abundant human resources and an expanding raw material supply, technical textiles are set to be a sustainable and viable option for India’s future. To support our nation’s goal of self-reliance, we are focused on reducing import dependence on crucial raw materials like nylon, carbon fiber, high-specialty fibers, and ultra-high-molecular-weight polyethylene (UHMWPE). Just as India is working to become self-reliant in semiconductors to boost its defense and aerospace sectors, we aspire to do the same in the field of technical textiles. To achieve this, the Modi Government launched the National Technical Textiles Mission (NTTM), supported by 1,480 crore. This initiative has already approved 168 projects worth ?509 crore and funded 12 startups with ?5.79 crore. We are not merely contributing to global progress; we are shaping it. Our vision extends beyond numbers, aiming to build a self-reliant India that leads through innovation while honouring its cultural heritage.
A significant milestone awaits us with the domestic production of T100 Carbon Fiber within 2.5 years, which will substantially reduce our import dependency in critical defense and aerospace applications. While we’re working to reduce our reliance on imported non-woven materials, carbon fibre, high-specialty fibers, nylon and UHMWPE. I’m confident India will begin domestic carbon fibre production by FY 2025-26, marking a crucial step toward self-sufficiency. Our agricultural sector showcases the transformative power of technical textiles. Innovative agrotextiles are driving over $567 million in exports with a robust 5% annual growth over the past six years. Picture a farmer in rural India using advanced shade nets and mulch mats, witnessing crop yields surge by 30-40% while using 40% less water. Through eleven groundbreaking projects under NTTM, including Sunn Hemp crop covers by Northern India Textile Research Association (NITRA) and herbal-coated seed bags by South India Textile Research Association (SITRA), we’re seeing farmer incomes rise by an unprecedented 67-75%. This is sustainable development in its truest form. National security remains paramount in our technical textiles journey. Our security personnel now benefit from an indigenous shield of courage – advanced protective fabric developed through NITRA’s research that withstands temperatures up to 449 degrees. This isn’t just about technical advancement; it’s about protecting those who protect us. India’s automotive sector is thriving, with vehicle sales surpassing 4o lakh units in FY 2023-24, driving airbag demand and prompting global leaders like Autoliv, ZF, and Joyson to expand operations locally. As the fastest-growing market for seat belt webbing, with a 9.2% growth rate supported by Autocop and Maruti Suzuki, India is advancing in safety and innovation. In packaging, Flexible Intermediate Bulk Containers (FIBC) are replacing traditional materials like glass, metal & cardboard containers, offering durability, versatility, and reusability. Lighter & more eco-friendly FIBC bags provide lower transportation costs and support sustainable practices. Furthermore, AI and blockchain are essential for making textile production smarter and more transparent. AI improves efficiency by automating processes, reducing errors, and enabling real-time monitoring, which enhances product quality. Blockchain adds accountability by securely recording each step in the supply chain, allowing customers and manufacturers to verify the origin, authenticity, and quality of materials, building trust and transparency in the industry.
Inspired by global leaders such as the USA, Japan, UK, Germany, and Israel, we are focused on advancing technical textiles through cutting-edge R&D and high-tech solutions. Israel’s innovations in the protech sector, like the Kit 300 for camouflage, and Italy’s leadership in agrotech, with sustainable solutions like advanced nets and thermo-reflective screens, serve as key models. By establishing a national knowledge center and strengthening local supply chains, we are adopting best practices. With the global technical textiles market set to grow from $250 billion to $300 billion by 2030, we aim to capture a 15% market share, underscoring our commitment to driving innovation and growth in this rapidly expanding sector. As we progress toward Vision 2047, technical textiles are emerging as the link between India’s rich textile heritage and its technological future. Under Prime Minister Narendra Modi’s visionary leadership, we are not just adapting to change but driving it-developing innovative fibers and sustainable solutions that will make Bharat’s technical textiles a global symbol of quality, innovation, and sustainability. The textile sector is poised to reach a market size of $350 billion, with exports contributing $100 billion by 2030. At this crucial juncture, I am confident that India’s technical textiles sector will not only meet global standards but set new benchmarks, creating vast opportunities for employment, entrepreneurship, and economic growth, and weaving a stronger, more resilient Bharat for tomorrow.
Source: State Times
Rising tariffs and trade barriers emerged as the top concern for global logistics and supply chain leaders, with 48 per cent of respondents identifying it as their biggest challenge, according to Descartes Systems Group’s 2024 Supply Chain Intelligence Report. The survey of 978 executives across Europe, North and South America, and Asia-Pacific also revealed that 45 per cent of participants cited supply chain disruptions, while 41 per cent pointed to geopolitical instability as significant issues affecting their operations. The findings from ‘2024 Supply Chain Intelligence Report: Escalating Challenges for Global Supply Chain Leaders’ survey, revealed that tariffs and trade barriers are a priority concern across all company sizes, with businesses ranging from small enterprises with fewer than 250 employees to large corporations with over 50,000 employees all citing this issue as their main challenge.
Companies anticipating over 15 per cent growth were more likely to express concerns about tariffs, with 51 per cent citing it as their top issue, compared to 43 per cent of those with limited or no growth.
Source: Logistics Business
The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, announces a significant milestone in its partnership with C.P.L. Prodotti Chimici srl, a renowned supplier of chemical products for the textile industry. LENZING Acetic Acid Biobased, a by-product of pulp production, is at the center of this collaboration. Oniverse, which also owns the renowned fashion brand Calzedonia, will not only rely on Lenzing for its fibers in the future but will also use LENZING Acetic Acid Biobased for dyeing textiles. Lenzing has always developed solutions together with partners to meet the industry's requirements for a circular economy. The strategic partnerships with C.P.L., the first licensing partner for LENZING Acetic Acid Biobased, and Oniverse underline the trust of customers in Lenzing's biorefinery products. These collaborations are a successful example of the increasing relevance of transparency and more environmentally friendly and sustainable products in the industry. In addition, Lenzing enables improved visibility of its own products for partners and customers through co-branding, whether in the textile and nonwovens sector or in the biorefinery product portfolio. “The collaboration with C.P.L. and Oniverse is another important step towards promoting the circular economy. Thanks to its high purity and low carbon footprint, our LENZING Acetic Acid Biobased plays a central role in many industrial processes. This strategic alliance underlines the industry's trust in Lenzing and our biorefinery products,” says Elisabeth Stanger, senior director Biorefinery & Co-Products.
“Our partnership with Lenzing, which has been based on trust and respect since the early 1990s, has always maintained a high level of quality. We are looking forward to the next step that combines quality with sustainability,” says Marco Lanzetti, owner of C.P.L. Prodotti Chimici srl. “As the first license partner for LENZING Acetic Acid Biobased, we are proud to be able to promote Lenzing as a brand to our customers, such as Oniverse, in the textile market, reduce our carbon footprint and achieve our sustainability goals,” adds Lanzetti. “This partnership is a good example of circular economy, showing how different supply chains can work together to optimize waste and reduce the impact of their activities on the environment,” says Federico Fraboni, head of sustainability at Oniverse. The biorefinery process at Lenzing makes optimal use of the renewable raw material wood, the starting material for pulp and fiber production, and converts it into valuable products such as bio-based acetic acid. LENZING Acetic Acid Biobased, which has a carbon footprint that is more than 85 percent lower than fossil-based acetic acid, is used in the food, pharmaceutical, cosmetics, chemical and textile industries and in processes in the textile sector, such as washing, dyeing and finishing.
Source: Fibre2fashion
The shutdown of textile companies across Nigeria has weakened Nigeria’s cotton production, pushing the crop into near-oblivion. Cotton is a critical plant-based raw material for textiles, with others being jute, hemp and sisal. Nigeria produces about 51,000 metric tons of cotton from over 300,000 tons in 1980s. The low cotton production is attributed to the closure of textile firms in Nigeria, with manufacturers saying that there is no longer a full-fledged textile company in the nation today. “I have stopped cotton farming because there is no off-taker. We do not have textile companies again that would off-take what we harvest. The business has become unprofitable,” said Mustapha Argungu, a farmer in Katsina. Nigeria’s cotton output has continued to diminish as more industry players shut down with thousands of jobs lost, Business Day learnt. In 1980s, Katsina, Jigawa, Sokoto, Kebbi, and Zamfara states produced 60–65 percent of Nigeria’s cotton, while Adamawa, Taraba, Yobe, Maiduguri, Bauchi, and Gombe states churned out 30–35 percent. Kano, Kaduna, Ondo, Oyo, Kwara, and Ogun states are also known to farm the crop on lower scales. However, things have gone from bad to worse. Anibe Achimugu, national president, Cotton Association of Nigeria, said the cotton value chain is going comatose. “The bedrock raw material (seed cotton) of the value chain is experiencing production decline as approximately 100,000 metric tons were produced in the 2023/2024 season but the 2024/2025 season is not likely to be above 15,000 metric tons,” he said. “Ginning, textiles and garment companies are operating well below installed capacities or have completely shut down.”
Source: Business Day
The Central Asia International Industrial Cooperation Center will become the region’s largest hub for freight traffic consolidation, processing, and distribution and boost industrial cooperation along the North-South corridor, Kazakh Trade and Integration Minister Arman Shakkaliyev told the Government meeting. The center will be located near the Atameken (Kazakhstan) and Gulistan (Kazakhstan) checkpoints. There will be production platforms, warehouses and transport infrastructure to speed up deliveries, reduce logistics costs, decrease delivery chain participants, and cut product costs for end-use customers. The minister said the Global Textile company’s project to manufacture made-up textile articles will be developed at the the center. The center will generate new productions, new workplaces, processing of agricultural and industrial products, develop machine building, pharmaceuticals, chemical industry, and textile manufacturing. The center is called to make a favorable effect on deepening bilateral trade and economic relations with near border countries, bolster business ties between producers and entrepreneurs of the two countries and raise mutual commodity turnover to 10 billion US dollars in five years to come.
Source: Inform KZ
Sri Lanka has received the grant of 11.28 million meters of fabric required to be provided for schoolchildren as uniform materials for the year 2025, from the People’s Republic of China. The fabric grant was officially handed over to the Minister of Education, Higher Education and Vocational Education, Prime Minister Dr. Harini Amarasuriya by the Chinese Ambassador to Sri Lanka Qi Zhenhong during an event held at the Colombo Port today (10). The 11.28 million meters of fabric, valued at around Rs. 5.2 billion, will be distributed among the students of 10,096 government and government-aided schools and 822 ‘pirivens’. The provision of uniform fabric to students free of charge has been carried out continuously by the Ministry of Education since 1992, and vouchers were issued to obtain school uniforms during the period from 2015 to 2020. Again, beginning from the year 2021, uniforms for school students were produced and purchased from local textile manufacturers. However, in view of the economic situation faced by the country due to the Covid-19 pandemic, the People’s Republic of China provided 70% of the uniform requirements for the year 2023 as a grant and purchased the remaining 30% from local textile manufacturers. Sri Lanka’s government approved receiving of the fabric grant for the year 2025, after testing the sample sent to the Ministry of Education in relation to the relevant stock of fabric by the Sri Lanka Textile and Garment Institute (SLITA), and upon receiving the recommendation that the fabric is suitable for use by school students. Speaking during the event, Prime Minister Dr. Amarasuriya expressed gratitude to the People’s Republic of China and the Chinese President. Commenting further, she noted: “The education is an extremely high priority for our country, and we know that China also values education greatly, and sees education as one of the primary modes through which we can reach development.” “For us as a government, investing in education is incredibly important. Investing in education means making it possible for all children irrespective of any socio-economic difference or position-to be able to accept education with dignity”, Dr. Amarasuriya added.
Source: Adaderana.lk
DUSHANBE, Tajikistan, December 10. Tajikistan and the Eurasian Development Bank (EDB) have agreed to continue working on the development of new priority projects, including the creation of a textile cluster and a modern logistics center, Trend reports. This was announced following a meeting in Dushanbe between Tajikistan's Minister of Economic Development and Trade, Zavqi Zavqizoda, and EDB Director for Tajikistan Vladimir Yakunin, according to the Tajik ministry. The sides discussed increasing EDB financing for projects in critical sectors such as industry, energy, agriculture, tourism, trade, education, healthcare, and the digitalization of the economy, with a particular focus on digitalizing business processes. Zavqizoda expressed gratitude to the bank's director for the EDB's active support in implementing key projects aimed at the sustainable development of Tajikistan's economy. The Eurasian Development Bank is an international financial institution that promotes economic development, commercial relations, and integration across Eurasian countries. Established in 2006 and based in Almaty, Kazakhstan, Tajikistan has been a member of EDB since 2009.
Source: Trend Agency
December 10, 2024 (MLN): Pakistan Credit Rating Agency Limited (PACRA) has assigned a long-term rating of ‘AA’ and a short-term rating of 'A1+' to Yunus Textile Mills Limited (YTML), according to the latest press release issued by PACRA. YTML received a rating upgrade due to its excellent performance, highlighted by record-high profits that have enhanced its business risk profile. While many large textile players struggled to sustain margins, YTML excelled in its core business. It further enhanced its performance through additional income streams, showcasing resilience in a competitive market. The company utilizes advanced production mechanisms and computerized processes, supported by ongoing BMR and expansion, to meet the high-quality standards of top international brands. A significant portion of the Company’s revenue is parked with export sales (FY24: RS75.8bln; FY23: 66.2bln) with a contribution of 95.6% on a standalone basis. In volumetric terms, base. The installation of ~33.85-megawatt solar and wind turbine has comforted the GP margin via optimizing escalated energy cost risk. The Company is in the process of installing a ~9.60 MW wind turbine, which is expected to become operational by the end of February 2025. However, dividend income of RS4.0bln as of FY24 from a large strategic investment book has augmented the profitability matrix of the Company. The management is mindful of coping with the financial cost risk and reduces the size of its borrowing book by offloading its short-term debt. The Company’s bottom line illustrated a sizeable improvement reaching RS16.0bln (FY23: RS 14.0bln). The Company fuels its working capital requirements through internally generated cash flows which has beefed up the coverage. The financial risk profile is considered strong, with a well-managed working capital cycle coupled with a low-leverage capital structure demonstrating ample borrowing capacity. Going forward, the management seeks to drive further growth by preserving its core operations and maintaining its steadfast client ties. The company has a strong financial risk profile, with a well-managed working capital cycle and a low-leverage capital structure, indicating significant borrowing capacity. Looking ahead, management aims to drive growth by focusing on core operations and maintaining strong client relationships. The ratings are dependent upon the intact business operations under the current economic conditions and draw comfort from the sponsor’s profile. Improvement in margins, maintenance of coverages, and cashflows at an optimal level while expanding business volumes remains critical.
Source: Links News
MULTAN: Pakistan’s textile industry, a vital pillar of its economy, is in turmoil as over 120 spinning mills in cities including Multan, Lahore, Faisalabad, and Karachi have shut down, leaving thousands jobless. The closures, driven by soaring production costs and dwindling global competitiveness, have disproportionately impacted rural workers from southern Punjab, industry officials said.
Industry on the brink of collapse
The All Pakistan Textile Mills Association (APTMA) has warned that the industry is facing its worst crisis in decades, with the entire textile value chain severely disrupted. Rising costs of raw materials and energy have rendered Pakistani textile products uncompetitive in global markets, forcing many businesses to scale back or cease operations entirely. APTMA Southern Zone Chairman Naveed highlighted the misuse of the Export Finance Scheme (EFS) as a major factor exacerbating the situation. The scheme, intended to support exporters, has reportedly been exploited by importers who resell duty-free cotton and yarn in local markets rather than supplying them to mills. This practice has left local manufacturers struggling to compete with cheaper alternatives. The ripple effects of these closures are devastating. An estimated 100,000 workers have been laid off nationwide, with the hardest-hit areas being rural regions of southern Punjab, where textile jobs are often the main source of income for families.
Global repercussions compound challenges
The industry’s troubles have been further aggravated by the International Cotton Association (ICA), which recently blacklisted 84 Pakistani textile mills for defaulting on international cotton purchase agreements. Many of the affected mills had previously received significant government subsidies but are now either completely shut down or operating at minimal capacity. This blacklisting has damaged Pakistan’s credibility in global textile markets, deterring potential business opportunities and investments. “The impact of the ICA’s decision has been catastrophic for our export potential,” said an APTMA representative.
Falling exports underscore crisis
Textile exports, once a robust contributor to Pakistan’s economy, have dropped dramatically to $1.64 billion—a far cry from the $25-30 billion achieved during earlier administrations. Analysts attribute this decline to policy missteps and rising costs that have rendered the sector incapable of sustaining previous growth levels. Adding to the industry’s woes, some investors have redirected capital into financial markets instead of reinvesting in textile manufacturing, exacerbating job losses and stalling economic activity.
Industry leaders urge immediate reforms
APTMA has called on the government to urgently restore the EFS to its pre-2024 framework and implement energy tariff reductions to revive the struggling industry. “The government must act decisively to protect what remains of the textile sector,” Naveed said, warning that further inaction could push the industry beyond recovery. The association has also called for a crackdown on the misuse of duty-free import policies and stronger support for local manufacturers to stabilize the supply chain.
Economic consequences loom large
The federal government has yet to introduce concrete solutions, although officials have signaled plans to review policies affecting the sector. Economists warn that the continued decline of the textile industry could have severe repercussions, including rising unemployment, increased trade deficits, and a weakening rupee. Without immediate policy interventions, Pakistan risks losing its foothold in the global textile market—a scenario that could have long-term consequences for the national economy and millions of workers dependent on the industry for their livelihoods.
Source: Minute mirror
Shanghai – After wrapping up its 30th anniversary edition last August, Intertextile Shanghai Home Textiles – Autumn Edition next year will open under a new theme. The international trade fair is adopting the slogan “Powering home textile connections in Asia” to emphasize how “textile power” facilitates business connections during the peak sourcing season in early autumn. “Visitors to our 30th anniversary edition this year increased by 10%, and 13% of the total was made up of international buyers,” said Wilmet Shea, General Manager of Messe Frankfurt (HK) Ltd., which organizes the expo. “With China extending its visa-free entry and adding more countries to the list, we are optimistic for a further increase in overseas visitors next August, and for the fair to demonstrate its rising value to global industry players.” The 2024 edition hosted 946 exhibitors from 15 countries and regions across the 100,000-square-meter show floor. It drew 35,000 attendees from 108 countries and regions. Next year’s Autumn Edition will take place from Aug. 20-25 and will feature a wide array of home textile products, including bedding, bath, rugs, table & kitchen linens, upholstery & curtain fabrics, editors, home textile technologies and textile design.
Source: Home Textile Today
The global garment and textile industry is undergoing a significant shift as regulations aimed at sustainability reshape the sector. HÀ NỘI — The global garment and textile industry is undergoing a significant shift as regulations aimed at sustainability reshape the sector. From California's SB 707 law mandating producer responsibility for textile waste, to the European Union’s stringent Extended Producer Responsibility (EPR) programmes, stakeholders across the supply chain are grappling with new environmental and social benchmarks. Việt Nam, a major player in the global textile market, is navigating these changes, seeing them as a mix of challenges and opportunities. “For Việt Nam, whose textile industry contributes 10 per cent of the nation’s GDP and is the world’s third-largest garment exporter, these regulations pose unique challenges,” said Ph.D. Trương Văn Cẩm, Vice Chairman and General Secretary of Việt Nam Textile Apparel Association (VITAS). “With approximately 60 per cent of raw materials still sourced from China, complying with traceability requirements and sustainable sourcing is daunting.” Chelsea Murtha, Senior Director of Sustainability at the American Apparel & Footwear Association (AAFA), highlights potential shifts in sourcing. “Brands are now prioritising recyclable materials and rethinking assembly processes,” she told Việt Nam News. This push could favour countries that develop advanced textile recycling capabilities, putting Việt Nam in competition with geographically closer regions like Central America.
Việt Nam’s reliance on imported raw materials, particularly from China, creates vulnerabilities, Cẩm said. The US Uyghur Forced Labour Prevention Act has already disrupted imports linked to Xinjiang, pushing companies to ensure clear supply chains. While there are emerging investments in cotton recycling facilities in Việt Nam, the nation still lags in large-scale textile-to-textile recycling, a critical capability for meeting international sustainability demands. Cẩm added that with a significant proportion of labour focused on basic cut-and-sew operations, there is a need for upskilling to adapt to circular manufacturing processes.
Opportunities for growth
Despite these challenges, Việt Nam’s garment and textile sector is well-positioned to adapt and thrive.
Companies like Garment 10 Corporation have established a green factory which embraces solar energy and biomass-powered systems to meet international standards. “The change in sources of energy helps the factory obtain the prestigious international renewable energy certificate I-REC, reducing the company’s electricity costs. As a result, the company’s products meet strict standards from major export markets such as the EU, the US and Japan,” Nguyễn Thị Bích Thuỷ, Deputy General Director of Garment 10 Corporation said.
Its green factory initiative is a typical example of how Vietnamese firms can align with global sustainability trends. Việt Nam’s participation in 16 foreign trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Việt Nam - EU Free Trade Agreement (EVFTA), offers access to markets demanding sustainable products, said the general secretary of VITAS. These agreements can also attract foreign investments to strengthen Việt Nam’s domestic raw material production. “With the return of US President-elect Donald Trump, Chinese commodities are expected to suffer from more tariffs. This is likely to cause Chinese producers in the garment industry to shift their factories to Việt Nam, helping the country strengthen material sources,” Cẩm said. Cẩm also stressed the importance of partnerships between government, brands and international organisations to build resilient supply chains and foster innovation. Murtha from AAFA echoes this sentiment, emphasising that countries adept at recycling and sustainable assembly will lead the garment industry in the future. — VNS
Source: Vietnam News
