Synopsis Senior commerce ministry officials and Indian Mission representatives from 20 countries concluded a three-day meeting to boost exports. They focused on country-specific opportunities, trade challenges, and strategies for six key sectors in leading markets, including the US and EU. Services exports reached an all-time high of USD 34.31 billion. Senior officials from the commerce ministry, and commercial wings of Indian Missions of 20 countries on Wednesday discussed ways to promote exports of goods and services. The three-day meeting was concluded on Wednesday. "Discussed country-specific and sector-specific opportunities and challenges in trade, technology, investment & tourism. Together, we explored ways to strengthen India's global leadership and foster deeper international collaborations," Commerce and Industry Minister Piyush Goyal said on X. The issues which came up during the three-day deliberations included opportunities and challenges and the way ahead in six focus sectors (of goods and services each) in 20 countries of significance; non-tari barriers; logistics; WTO (World Trade Organisation) matters; and role and importance of MAI (market access initiative), the official said. The meeting was important as the commerce ministry is in the process of formulating a strategy to push exports of six key product categories, including engineering goods and electronics, to 20 focus countries, including the US, Australia, France, China, Russia, the UK, Japan, South Korea, Singapore, and Indonesia. These countries, including the US and the European Union nations, account for a major chunk of India's total exports. After recording double-digit growth in October 2024, India's exports in November contracted 4.85 per cent year-on-year to USD 32.11 billion. Cumulatively, during April-November this fiscal year, exports increased by 2.17 per cent to USD 284.31 billion and imports by 8.35 per cent to USD 486.73 billion. Trade deficit, the difference between imports and exports, during April November widened to USD 202.42 billion from USD 170.98 billion during April-November 2023. Last month, Barthwal said that the ministry is focusing on 20 countries and six services and manufacturing sectors, including IT/ITeS to further boost the shipments. Services exports reached an all-time high of USD 34.31 billion in October, registering an increase of 22.3 per cent year-on-year.
Source: Economic Times
Synopsis Finance minister Nirmala Sitharaman in her July budget speech had stated that to facilitate term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme will be introduced. NEW DELHI: The government is set to launch the proposed credit guarantee scheme for the MSME sector, which will cover loans up to Rs 100 crore, nancial services secretary M Nagaraju said Thursday. "We are likely to come up with a scheme, which was announced by the nance minister in her last budget, that could provide loans up to Rs 100 crore without guarantee, if they are already having the enterprise," he said at the concluding day of Grameen Bharat Mahotsav. The scheme is expected to be placed before the Union Cabinet soon for approval. Finance minister Nirmala Sitharaman in her July budget speech had stated that to facilitate term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme will be introduced.
Source: Economic Times
Synopsis The rupee weakened to a record intraday low of 85.93 per dollar on Thursday, closing at 85.848 per dollar, nearly unchanged from the previous day. Pressure on the rupee was due to risk aversion toward the US dollar and selling from foreign portfolio investors. Intervention by public sector banks curbed excess volatility in the currency. The rupee weakened to its lifetime intraday low on Thursday to 85.93 per dollar before closing at 85.848/$1, little changed from the previous day. Risk aversion toward the US dollar on the back of expectations of slower-than anticipated rate cuts by the Federal Reserve put pressure on the rupee, traders said. Selling from foreign portfolio investors (FPI) also added pressure on the rupee. Relatively to Wednesday, when the unit ended at 85.845/$1, the currency was nearly unchanged, LSEG data showed. The rupee was under pressure for most of the session, but dollar sales from public sector banks, likely on behalf of the Reserve Bank of India (RBI), contained excess volatility in the rupee, traders said. The dollar index, which was at its highest level since October 2022 at 108.8 last week, was further up at 109.2 during the day. Dollar index jumped after there were reports that Donald Trump was contemplating use of emergency measures to allow for a new tari program. "The weakening bias continues, with overvaluation of the broad real effective exchange rate (REER) also weighing on the exchange rate. Strong intervention presence in the recent months has led to a drain in domestic liquidity, pushing the liquidity to a deficit," DBS Bank said in a note.
Source: Economic Times
Synopsis In December, India shifted crude imports from Russia, the US, Venezuela, and Brazil to Iraq, the UAE, Kuwait, Angola, and Nigeria due to reduced exports from the former group. Russia's monthly share dropped to 33.4% as higher domestic refining needs limited exports. India secured alternative supplies primarily from Iraq and the UAE. New Delhi: Distant suppliers Russia, the US, Venezuela and Brazil lost a combined 17% share of the Indian crude import market in December compared to a month earlier as increased demand from their own refineries curtailed exports to India.
Source: economic Times
The Central government has asked industry associations, legal players and regulatory representatives to suggest ways to further improve the business climate for overseas investors to boost the flow of foreign direct investment (FDI) -- which has been on a decline for the last three years. The Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday held a meeting with industry bodies CII, FICCI, ASSOCHAM, and representatives from the Reserve Bank of India to discuss norms governing inbound investments and to come up with ways to increase overseas equity flow into the country.
Source: Business Standard
The Indian economy is expected to grow by 6.6 per cent in 2025 and 6.7 per cent in 2026, supported by solid private consumption and investment growth, according to the United Nations (UN) flagship report, World Economic Situation and Prospects 2025, released on Thursday. Keeping its 2025 growth forecast unchanged from its mid-2024 estimates, the UN report said, “In India, the public sector continues to play a pivotal role in funding large-scale infrastructure projects, physical and digital connectivity, and social infrastructure, including improvements in sanitation and water supply. Strong investment growth is expected to continue through 2025.” The First Advance Estimates from the National Statistics Office forecast the Indian economy to slow to a four-year low of 6.4 per cent in 2024-25, falling short of the Reserve Bank of India’s (RBI’s) projection of 6.6 per cent. The report highlighted that capital expenditure on infrastructure development is expected to have strong multiplier effects on growth in the coming years. Expansion in the manufacturing and services sectors will continue to drive the economy, while strong export growth in services and certain goods categories, such as pharmaceutical and electronics, will bolster economic activity, the UN report said. It also noted that favourable monsoon rains in 2024 have improved summer-sowing areas for all major crops, boosting agricultural output expectations for 2025.
The UN report said that economic growth in South Asia is expected to remain robust in 2025, primarily driven by strong performance in India. The region is projected to grow at 5.7 per cent in 2025 and 6 per cent in 2026. Risks to the outlook, the report stressed, include possible escalation of geopolitical tensions, deceleration in external demand, ongoing debt challenges, and social unrest. In addition, the region is highly vulnerable to the impact of climate hazards, with extreme weather events posing a significant risk, the report said. “Countries cannot ignore these perils. In our interconnected economy, shocks on one side of the world push up prices on the other. Every country is affected and must be part of the solution — building on progress made,” said António Guterres, UN Secretary-General, in the foreword to the report. Consumer price inflation, the report forecast, would decrease from an estimated 4.8 per cent in 2024 to 4.3 per cent in 2025, staying within the 2–6 per cent medium-term target range set by the RBI. The UN flagship economic report projects that global growth will remain at 2.8 per cent in 2025, unchanged from 2024. The report also highlighted the opportunity for resource-rich developing countries, such as India, to boost growth, create jobs, and increase public revenues for investment through rising demand for critical minerals. The report warns that these opportunities come with considerable risks. “Governments must adopt forward-looking policies and comprehensive regulatory frameworks to drive sustainable extraction, equitable benefit-sharing, and investments in building productive capacities to maximise the development gains from these resources,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.
Source: Business Standard
The sectors that could be covered in this year’s Budget for adjustments of duties would be information technology hardware items, automobile parts and textiles.
The government has decided to bide time and take a reactive – rather than pre-emptive – approach to the impending tariff threat from the incoming Donald Trump administration in the US, according to official sources. It is unlikely that the FY26 Budget, to be presented in Parliament on February 1, would undertake any anticipatory customs duty restructuring to bring down the tariff levels in response to Trump’s charges of India being a “high tariff” nation, these sources said.
At best, routine duty adjustments, including those aimed at further correction of the “inverted duty structure” would be carried out in the Budget. Though Trump’s inauguration on January 20 will precede the Budget, a senior government functionary said that it remained to be seen what he actually intended to do, and by when. He could go the whole hog as soon as after assuming office, or might adopt a staggered approach, the source noted, underscoring that there wasn’t any need for the country to take any pre-emptive measure, or hurry in this regard. The US president-elect has on multiple occasions called India a major tariff abuser, and threatened the country of strict reciprocal moves. Lately, he reiterated that his tariff policy would not be pared back, denying a Washington Post report, which suggested a rethink.
New Delhi has been maintaining that it has already lowered tariffs significantly, and that those are almost in sync with average global levels. The government has also had to face demands from many industries for tariff protection, a situation which reveals their continued lack of global competitiveness. Over a few years to FY23, India had seen a signification tariff escalation, reversing the trend of progressive reduction of these import barriers, primarily in the wake of the pandemic. The simple average of import tariffs maintained by India had risen from a low of 13% (10.1% for non-agriculture or industrial goods) in 2009 to 18.1% (14.7%) in 2023. Import tariff is the basic customs duty (BCD) applied on items identified on the basis of a six-digit harmonised commodity description and coding system (HS Code); other imposts on inward shipments, including the integrated GST, are meant to replicate taxes suffered by domestic goods and services. Thanks to the steps taken in the FY25 Budget, the average tariff rate of the country came down, and is around 17% now. This is much higher than the US’ 3.3%, but is comparable to other major economies like South Korea (13.4%) and China (7.5%). However, the US, too, keeps high tariffs on certain items to protect domestic producers. As per the World Tariff Profiles 2023, dairy products attract 188% duty in the US, while fruits and vegetables (132%), coffee, tea, cocoa and spices (53%), cereals and food preparations (193%), oilseeds, fats and oils (164%), beverages and tobacco (150%), fish and fish products (35%), minerals and metals (187%), and chemicals (56%) too attract very high duties. “I don’t think the government is going to announce any big tariff cuts in the Budget. That said, surely there would be some thinking in the government on how to respond to any increase in duties by the new US government,” said Biswajit Dhar, trade expert, acting president and distinguished professor at Council for Social Development. The quantum of tariffs that Trump may impose on Indian products cannot be anticipated even though there have been general statements from him on levelling the playing field with trade partners, said Ajay Srivastava, co-founder of Global Trade Research Initiative (GTRI). Complete reciprocity is not possible in much of the traded items between India and the US. While India’s exports to the US are mostly manufactured products like smartphones, steel, textiles and apparel, jewellery, its imports mostly are of raw materials like petroleum, natural gas, coal, besides some agriculture products and aircraft parts. The US might seek greater opening up by India in agricultural products and even in the emerging area of electric vehicles, Dhar said. EVs and their batteries are a focus area for the US along with semiconductors and renewable energy, where it is putting up massive capacities while increasing import duties on Chinese imports of these products. Despite the US threats of tariffs China, Mexico, and to some extent Canada, are fighting back. Mexico increased its import duties on some products as late as December 2024, well after the US president-elect singled it out for imposing higher tariff. FE had reported that the government is likely to go for an overhaul of the basic customs duty on more than 100 items. Some of these changes would be to correct the inverted duty structure that has crept in value chains of different products after tinkering of past years. Inverted duty structure refers to a situation where duty on components is higher than finished products. This situation incentives imports over domestic value addition. The sectors that could be covered in this year’s Budget for adjustments of duties would be information technology hardware items, automobile parts and textiles. The industry has asked for reduction in duties on inputs like machinery parts, products used in the production process and some raw materials. “Manufacturing competitiveness has been a big issue so I think import duties on components could be reduced. This will provide a competitive edge to exports that have been under pressure in the sluggish global economy,” Dhar said. Finance minister Nirmala Sitharaman in her FY25 Budget speech in July had proposed to undertake a “comprehensive review” of the duty structure over the next six months to “rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes”. Srivastava said despite what Trump does, India should reorganise its tariff structure that has not been looked at, in entirety, in the last 20-25 years. “It will be in our interest and many decisions could come out of the review, that will aid the manufacturing sector,” he said. The review should also do away with abnormally high tariffs on some products like wine that attract 150% duty and draw adverse attention from trade partners, he added.
Source: Financial Express
The increase in international demand in the last few months has revived production activity and investments at the garment units in Tiruppur. This has, in turn, buoyed up demand for yarn produced by the textile mills. According to K.M. Subramanian, president of the Tiruppur Exporters Association (TEA), several retail buyers who are sourcing garments from Bangladesh are exploring the potential in Tiruppur. Some of them have started conducting audits at the units and this indicates that orders will be placed in six months. Almost 90% of the garment export units in Tiruppur are running to full capacity now. “The machines at the garment units are mostly outdated as the current generation machines come with artificial intelligence. The efficiency is 30% higher. Hence, the garment manufacturers are going in for new machines to replace the old ones or to build additional capacity,” he said. A garment exporter said the requirements of the buyers and the customers in other countries have changed in the last couple of years. Several small retailers have gone out of business and customers prefer to buy from large retailers. These retail buyers and their sourcing agents are looking at higher capacities in the garment units here. Hence, a manufacturer or exporter should have at least 150 machines to get good orders. “The manufacturers and exporters in Tiruppur who are able to adapt to the changing demands of the buyers are doing good,” he said. Further, at least 18% of the fabric needs of Tiruppur are imported now to meet the needs of the buyers.
In the case of the spinning mills, the smaller mills that supply to the garment units have seen a revival of orders for yarn. “Almost 40% of the small mills were affected because of the slump in business last two years. The other units are doing good and operating almost to full capacity for the last three months,” said a small-scale spinning mill owner in Coimbatore. The government should remove the import duty on cotton and relax the Quality Control Order norms for the textile industry to capitalise on the opportunities in the international market, he added.
According to the Southern India Mills Association, the cotton prices cannot get lower. The low and stable cotton prices, which is the main raw material for the textile industry, are supporting the mills. However, the weaving industry continues to face slowdown in orders. Those who went in for auto looms are struggling to get viable prices. Exports to Bangladesh has taken a hit as there are delays in payments by the buyers there. This will take a few more months to settle down, said K. Sakthivel, chairman of the Powerloom Development and Export Promotion Council.
Source: The Hindu
Bengaluru: Ballari, one of Karnataka's leading jeans manufacturing hubs, is on track to have its long-awaited Jeans Textile Park, with the state govt completing the land acquisition process. The establishment of the park will see two decades of promises from successive govts finally coming to fruition. "154 acres of land have already been acquired for the project to fulfil the promise made by Rahul Gandhi during the ‘Bharat Jodo Yatra'," state industries minister M B Patil said on Thursday. He elaborated that Karnataka Industrial Areas Development Board would oversee the establishment of the jeans park at Sanjeevarayanakote, near Ballari. He emphasised the project's goal is to elevate the denim industry in the region to global standards.
Source: Times of India
Surat: The three-day SITEX — Surat International Textile Expo 2025 — that begins on Friday will be a non-China machinery expo, to promote "Make in India". Every year, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) and the Southern Gujarat Trade and Industries Development Centre organize SITEX in two parts. The second edition of SITEX later this year will focus exclusively on Chinese machinery. For the past few years SGCCI has held two exhibitions to push for technology modernization in the industry, giving a platform to non-Chinese machinery as well. Technological upgrades in textile machinery will be on display at SITEX. The exhibition will feature a 32-head Japanese printing machine, which is the latest technology in high-demand productivity. This machine, currently installed only in Varanasi, will also be installed in the city. Previously, digital printing machinery had up to 16 heads. This 32-head machine will enable more efficient production of embroidery fabric and viscose jacquard. "This year, the 32-head printing machine will be on display for the first time in the city. This upgrade in digital printing will provide a significant boost to Surat's garment industry," said Vijay Mewavala, president, SGCCI. The ‘Make in India' initiative will showcase water jet machines, high-speed rapier machines and shuttle looms with seven shuttles. These machines can produce value-added fabrics, including pure silk and semi-silk made with gold and silver threads. Currently available only in southern India and Varanasi, these machines will be exhibited for the first time in Surat, allowing local weavers to produce high-quality value-added fabrics. "Velvet airjet machinery will also be on display, which can produce high-quality velvet. Presently, high-quality velvet is imported from Korea, but this machine will enable local production," added Mewavala.
Source: Times of India
Vietnam saw a significant rise in business sentiment in the fourth quarter (Q4) last year, reflecting resilience amidst a turbulent global landscape, according to the quarter’s business confidence index (BCI) report released recently by the European Chamber of Commerce (EuroCham) in the country. The BCI score surged from 46.3 in Q4 2023 to 61.8 in Q4 2024, marking a pivotal shift from a neutral to a positive sentiment in both current and future outlooks. The surge is despite ongoing operational hurdles and global economic uncertainties. Vietnam’s strong performance is, in part, attributed to the country’s continued growth trajectory, its improving infrastructure, and its emergence as a regional hub for both trade and investment. For much of the past two years, the BCI, conducted by Decision Lab, hovered around the neutral midpoint of 50, dipping below it on occasions. The Q4 2024 report, however, marks a pivotal shift as the score reached its highest level since early 2022. According to the survey, 42 per cent of respondents reported feeling positive about the current business situation, with 47 per cent anticipating similarly optimistic conditions for the upcoming quarter. More prominently, 56 per cent of respondents foresee improvements in Vietnam’s macroeconomic outlook in the first quarter of 2025, a press release from the chamber said. Many respondents referenced the ‘double transformation’ of digital and green transitions as key drivers of optimism. Businesses that have embraced these trends reported significant growth, with some even citing a 40-per cent increase in revenue compared to the previous year. The trend toward sustainability, spurred by both government policy and global pressures, is becoming a significant factor in shaping business strategies across multiple sectors. Three-quarters of survey respondents indicated they would recommend Vietnam as an investment destination. While the overall sentiment is positive, operational challenges continue to be a significant concern for European businesses in Vietnam. As in previous surveys, the top three operational obstacles identified were administrative burdens, unclear regulations and difficulties in obtaining licenses and permits. The complexities of visa requirements for foreign workers and experts topped the list of administrative challenges, with 42 per cent of responses highlighting this as a primary concern. Tax-related issues were also cited by 30 per cent of respondents, with further challenges related to import/export and investment registration procedures.
Many respondents to the survey expressed optimism that these reforms would lead to significant improvements in administrative processes, with 43 per cent expecting streamlined procedures in the long term, particularly with the adoption of digital platforms and reduced paperwork requirements.
However, 36 per cent of respondents also expressed concerns about potential delays in processing applications during the restructuring phase.
Another area where businesses are expecting significant improvements is in infrastructure. Nearly 40 per cent of respondents anticipate that infrastructure upgrades will not only reduce the cost of regional distribution but also bolster connectivity for import and export flows.
Furthermore, 12 per cent foresee transformative improvements in employee travel, enabling businesses to optimise operations and attract talent across regions.
Source: fibre2fashion
Since its inception, the show has been pivotal in driving innovation, fostering international collaborations, and empowering local manufacturers to reach new heights in the global market. Organised by CEMS-Global USA, the DIFS has evolved into one of the most prominent and internationally recognised events on the international textile trade show calendar. It is part of the Textile Sourcing Series of Exhibitions held across three continents: Bangladesh, Brazil, Morocco, Sri Lanka and Thailand.
The textile and apparel industry is the backbone of Bangladesh's economy, contributing over 80% to the country's export earnings. DIFS has supported this growth by providing a unique platform where industry leaders, buyers, suppliers, and innovators converge to explore new trends, technologies, and business opportunities. As Bangladesh continues to grow as a global leader in textiles, DIFS remains a key enabler of this progress. The event strengthens the local industry and enhances its global footprint by providing a platform for innovation, collaboration, and knowledge sharing. The Dhaka International Yarn and Fabric Show's journey from its humble beginnings to becoming a globally renowned event is a testament to its importance and effectiveness. As the event continues to expand its reach and influence, it will undoubtedly remain a driving force behind the growth and modernisation of Bangladesh's textile and apparel industry.
Source: TBS News
IN A vast Bangladeshi factory hall thrumming with sewing machines, garment workers churn out seemingly endless pairs of mountain hiking trousers for customers in Europe and North America. Bangladesh’s key clothing manufacturing industry supplying global brands was crippled by a revolution that toppled the government last year, in which garment sector protesters played an important role.
Hard life
While owners say that business has bounced back, frustrated workers say hard-won concessions have done little to change their circumstances, and life remains as hard as ever. “It is the same kind of exploitation,” said garment worker Khatun, 24, asking that only her first name be used as speaking out would jeopardise her job. Production in the world’s second-largest garment manufacturer was repeatedly stalled by the months-long violence, before protesters forced long-time autocrat Sheikh Hasina to flee in August. An interim government, led by Nobel Peace Prize winner Muhammad Yunus, took over. Protests, however, continued in a string of garment factories for better conditions and more pay, with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) warning in October of US$400 million in losses. Scores of factories closed and tens of thousands lost their jobs. But after a 5 per cent wage hike was agreed in September, the industry rebounded.
Source: Business Times
Global Standard, the non-profit that owns and operates the Global Organic Textile Standard (GOTS), has invited the public to consult on the next version of the Standard and its Implementation Manual. The announcement comes at a time when the textile industry seeks guidance on complying with global regulations and combating greenwashing.
GOTS revisions occur every three years to seek inputs from the public and expertise from industry stakeholders. As a dynamic Standard, GOTS remains relevant, effective and aligned with the latest developments in the textile industry, environmental and social responsibility, and regulatory frameworks.
“Global Standard is excited for the next era of GOTS in a period of evolving regulations and increased public awareness of the need for a more sustainable textile sector,” said Claudia Kersten and Rahul Bhajekar, Global Standard managing directors, in a joint statement. “We remain committed to our vision of a world where all textiles are produced in accordance with the principles of health, ecology, fairness and care to enhance people’s lives and the environment. GOTS Version 8.0 will continue to build on that and provide much-needed rules and tools for businesses and remain the trusted label for consumers.”
The first public consultation for the initial draft of GOTS Version 8.0 and accompanying Implementation Manual will remain open until 7 March 2025. Global Standard invites inputs from all stakeholders, which will be reviewed and discussed by the GOTS Standard Revision Committee. A second public consultation will take place in July. Summarized inputs and outcomes of comment discussions will be published on the GOTS revision webpage for transparency and further engagement. As part of the process, Global Standard announced to the public 1 January 2025 the new Standards Revision Committee. This 25-member group chosen from over 50 applicants after a public appeal consists of representatives from all sectors of the textile value chain, including fibre production and processing, chemical production, manufacturing, labour, traders, retailers, consumers, the post-consumer sector, civil society and professional and technical services.
Source: Natural Product
