New Delhi: Preparations for the 'Utkarsa Odisha: Make in Odisha Conclave 2025' scheduled to take place on January 28 and 29 in Bhubaneswar are in their final stages. Speaking ahead of the event, Debabrata Ghosh, Director and Marketing Head of Oerlikon, one of the largest textile machinery manufacturing companies in the world, shared his insights on Odisha's potential to become a global leader in the synthetic fibre-based textile industry. While speaking to IANS, Ghosh said, "I am the Director and Marketing Head of Oerlikon in India, with our headquarters based in Switzerland and Germany. I am here in Odisha because I strongly believe that this state has the potential to become the next global engine for the synthetic fibre-based textile industry. Indian Oil and MCTI have announced a joint venture to establish a spinning plant in Odisha, which will serve as the foundation for the fibre-based industry and the development of government schemes in the region." Ghosh highlighted that this move would position Odisha as a leader in the sector, as Eastern India has so far lacked a large integrated plant for the textile industry. "Odisha has numerous advantages, including access to ports, mineral resources, and an affordable labour force. With more than 50 per cent of Eastern India’s population residing here, Odisha stands to benefit greatly from such an industrial boost." He further emphasised Odisha’s bright future, especially in textiles and industries, due to its growing infrastructure and business-friendly policies. "India is growing at a steady rate of 8 per cent annually. In 2000, the country's GDP was $442 billion, and by 2025, we are expected to reach nearly $4 trillion. By 2046, India’s economy could touch $30 trillion. This growth trajectory suggests that India’s manufacturing sector will see a 12 per cent increase in the next 20 years. India is now the world’s fastest-growing large economy, and under Prime Minister Narendra Modi’s leadership, it is set to emerge as a major industrial powerhouse with a strong manufacturing base,” Ghosh concluded. His optimism about the future of Odisha and India aligns with the government’s push to attract investment and establish the region as a key industrial hub in the coming years.
Source: Sambadenglish.com
Synopsis The Indian government has upgraded the electronic certificate of origin system to simplify export certification and enhance trade efficiency. From January 2025, electronic filing of non-preferential certificates will be mandatory, helping streamline processes for over 7,000 certificates daily and ensuring transparency and accuracy. New Delhi: To simplify the certification process for exporters and enhance trade efficiency, the government Monday said it has upgraded its system of issuing electronically generated certificate of origin to help exporters. The document is important to claim duty concessions under free trade agreements as it proves where the goods originate. The upgraded platform offers features such as multi-user access, which enables exporters to authorise multiple users under a single Importer Exporter Code (IEC). designed to simplify the certification process for exporters and enhance trade efficiency,” the commerce and industry ministry said in a statement. The electronic filing of non-preferential certificates of origin has become mandatory through this platform from January 2025. “This trade facilitation initiative has been streamlining the certification process, and improving turnaround times for exporters,” the ministry said, adding that the platform processes over 7,000 certificates per day. These certificates cater to goods not of Indian origin, intended for re-export, trans-shipment, or merchanting trade. Issued based on documentary evidence from the foreign country of origin, the Back-to-Back CoO ensures transparency and accuracy by explicitly mentioning details of the origin and supporting documents, it said.
Source: Economic Times
Synopsis Indian Prime Minister Modi is investing billions in struggling state-run firms, diverting from prior privatisation plans. Notable investments include a $1.3 billion plan for steel producer Rashtriya Ispat Nigam Ltd and a $230-$350 million infusion for helicopter operator Pawan Hans. The privatisation slowdown is partly driven by political pressures and expectations that some firms can be made profitable. Indian Prime Minister Narendra Modi is pouring billions into ailing state-run firms after slowing ambitious divestment plans that were intended to reduce the role of the state in business, according to government sources and a document reviewed by Reuters. Less than a month into 2025, New Delhi has plans to invest about $1.5 billion in financial rescue packages for two state-owned firms after failing to sell them to private companies. It has also decided to put in "abeyance" privatisation of at least nine state identify privatisation candidates. The document, reviewed by Reuters, did not cite reasons for the decision. The nine companies include Madras Fertilizers, Fertilizer Corp of India, MMTC and NBCC (India), the document showed. Housing and Urban Development Corp, that was also identified for privatisation, has now been 'exempted' implying it will not be sold, according to the document. Among the state-owned companies being revived with government funding is helicopter operator Pawan Hans. The government is planning to infuse around $230 million-$350 million in Pawan Hans to modernise its aging fleet of helicopters after four failed attempts to sell the company, two government sources said. The amount of infusion is still being finalised as the options being considered for fleet modernisation include both outright acquisition and leasing, one of The sources declined to be identified because of the sensitivity of the issue. India's finance and civil aviation ministries did not immediately reply to emails seeking comment on the privatisation plans or on the Pawan Hans investment. The fund infusion in Pawan Hans and plans to halt the privatisation of nine firms have not been previously reported. In 2021, Modi's government announced a major programme to privatise most of India's state-run companies. The plan was so drastic that even in the four sectors that India sees as sensitive, such as telecoms and banking, it wanted to keep only a minimum presence, while exiting from all other sectors. But now it is planning rescue and revival plans for companies even outside the sensitive sectors. Last week, the government announced a $1.3 billion plan to revive debt-laden steel producer Rashtriya Ispat Nigam Ltd (RINL). The government has also allocated 80 billion rupees in 2024/25 for bond repayments of state-run telco MTNL that has seen a series of defaults lately, according to budget documents for the current year. PRIVATISATION SLOWDOWN Four years since the privatisation policy was announced, the Modi government has had only three successes, out of which Air India's sale to the Tata Group was the largest. The other two were indirect holdings in steelmaker Neelachal Ispat Nigam Ltd to Tata Steel and Ferro Scrap Nigam to Konoike Transport Co. Other large sales have either been deferred or delayed. The U-turn in policy was partly driven by the expectation that some large state-owned firms could be overhauled and made more profitable, helping the government earn dividend income, Reuters has reported previously. Political pressures on Modi have increased after he came back to power in mid-2024 only with the help of regional allies, making it more difficult to overcome opposition to privatisation by employee unions fearing job losses. The sale of state refiner Bharat Petroleum Corp was rolled back in 2022 after failing to get suitors. The ongoing privatisation of Shipping Corp of India and BEML has been stuck for years due to complications over transfer of land holdings. The government has also been dragging its feet on the sale of plan to reduce its budget gap. But with the federal fiscal deficit seen falling to a more comfortable 4.9% of GDP in the 2024-25 year, the fiscal push for divestment has waned. New Delhi is expected to miss its internal stake sale target of 180 billion to 200 billion rupees in 2024-25 (April-March) for the sixth straight year. As of January, government has mopped up 86.25 billion rupees via stake sales in 2024/25.
DGTR probes dumping, considers anti-dumping duty to protect domestic industry from cheap imports, ensuring fair trade practices.
Source: Economic Times
India has initiated a probe into the alleged dumping of PVC paste resin, used to make artificial leather and other technical textiles’ products, from the European Union (EU) and Japan, according to a notification. The commerce ministry’s investigation arm, Directorate General of Trade Remedies (DGTR), is probing the dumping as imports are allegedly hurting the margins of the domestic industry. Chemplast Sanmar Ltd. has filed an application seeking the imposition of anti-dumping duty, stating that the cheap imports are causing material injury to the domestic industry. “On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by domestic industry about the dumping of subject goods...the Authority, hereby, initiates an anti-dumping investigation,” the DGTR has said in a notification.If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on these imports. The finance ministry takes the final decision to impose duties. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producer’s vis-a-vis foreign producers and exporters. India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China. Last month, the DGTR recommended the imposition of an anti-dumping duty of up to $707 per tonne on imports of PVC paste resin from six countries, including China, for five years, with an aim to guard domestic producers.
Source: The Hindu
Synopsis Industry players urge the Union Budget 2025-26 to include policies that boost local manufacturing, reduce GST on consumer durables, and provide financial incentives for the PLI schemes. They emphasize sustainable manufacturing, tax exemptions, and measures to enhance disposable incomes and consumer spending. Days ahead of the Union Budget 2025- 26 on February 1, the industry players in the manufacturing sector have called for favourable policies boosting local manufacturing, reducing GST on consumer durables, and tax reforms to increase disposable incomes and stimulate consumer spending. As the Union government is keen to increase share of manufacturing in GDP from 17 per cent to 25 per cent, the industry players are expecting financial incentives for expanded production-linked incentive (PLI) schemes, support for sustainable manufacturing and tax exemptions among others. Simarpreet Singh, Executive Director and CEO of Hartek Group, commended the Indian government's strides in supporting the renewable energy sector, particularly solar power He further highlighted the importance of continued support for productionlinked incentive (PLI) schemes and infrastructure development, which would drive private sector participation, foster innovation, and enhance India's manufacturing capabilities. Meanwhile, Nileshkumar Kukalyekar, Business Director for South Asia, Middle East, and Africa at Envalior, emphasised the need for greater investment in sustainable manufacturing and innovation. With global demand for environmentally responsible products rising, Kukalyekar urged the government to focus on policies that incentivize the use of recycled and bio-based materials We urge the government to focus on policies that incentivise the use of recycled and bio-based materials, support research into new green technologies, and promote circular economy models," he said. Strengthening such initiatives, according to Kukalyekar, would help accelerate India's transition to a low-carbon economy. On the technological front, Ankit Kumar, CEO of Skye Air, voiced strong support for the development of the drone sector, a technology with the potential to revolutionise logistics, especially in e-commerce and quickcommerce. Kumar suggested that the upcoming budget should prioritize "tax exemptions or reduced GST rates on drone services, manufacturing, and maintenance," which would significantly lower operational costs and make drones more accessible to businesses. He also called for expanding funding under the PLI scheme to include drone services and infrastructure, such as drone ports, as well as simplifying regulatory processes for drone operations, particularly for Beyond Visual Line of Sight (BVLOS) deliveries Saurabh Rai, CEO of Arahas Technologies, highlighted the need to strike a balance between rapid technological advancements, particularly in AI, and the foundational needs of sectors like Geographic Information Systems (GIS) and space tech. Rai expressed concern about the underfunding of critical projects such as GIS, which are essential for disaster preparedness, land optimization, and sustainable urban planning. He urged that the budget prioritize "boosting funding for GIS, prioritizing sustainability, and directing AI innovation towards solving real-world problems." Harshit Aggarwal, founder and CEO of Novamax Appliances, echoed the sentiments of many industry leaders, urging the government to continue reinforcing policies that support local manufacturing. Aggarwal said, "We hope the government to continue reinforcing policies on local manufacturing support, empowering MSMEs, startups, and the 'Made in India' brand." He called for the expansion of initiatives like the Pradhan Mantri Mudra Yojana, which has been instrumental in providing easy access to credit for MSMEs, enabling them to innovate and scale up. Aggarwal also noted the significant progress made under the PLI schemes, which have led to an increase in domestic production and job creation. Saket Gaurav, Chairman and MD of Elista, called for measures to strengthen the consumer durables industry. He recommended expanding the PLI scheme and reducing import duties on critical components to bolster domestic production capabilities. "Rationalizing GST rates, especially on larger screen televisions currently taxed at 28 per cent, would enhance affordability and encourage the adoption of advanced technology," he said. Gaurav also advocated for better financing options for consumers and policies aimed at export subsidies, which would help Indian brands compete in global markets. The need to strengthen India's MSME sector was highlighted by Amit Mittal, founder and MD of Chandpur Paper, who pointed out the importance of incorporating sustainability into operations to achieve net-zero emissions by 2070. "We expect the much-awaited Union Budget 2025 to focus on green subsidies, low-interest loans, and tax breaks that make sustainability more accessible and economically feasible for enterprises," Mittal said. He also advocated for increased access to carbon credit markets and subsidies for green technology to support MSMEs in their transition toward sustainable practices. Going further, HS Bhatia, MD of Daewoo India, expressed concerns about the taxation burden on the middle class and its impact on consumer spending. He called for measures to reduce the tax burden on the middle class, noting that it would improve disposable incomes and consumer spending capacity. Bhatia emphasized, "Just as the government has reduced corporate tax and introduced several PLI initiatives for companies to boost manufacturing, there is a need to ensure more disposable incomes for people by reducing the tax burden of the middle class." Ashish Munjal, Co-Founder and CEO of Sunstone underscored the need for fiscal incentives to foster collaboration between industry and academia. He suggested that investments in R&D within higher education and skill development programs could bridge employability gaps and enhance the sector's potential.
Source: Economic Times
India has intensified efforts to curb the unchecked import of Chinese fabrics, particularly synthetic knitted fabric, following persistent demands from the domestic textile industry. Despite the government’s imposition of a Minimum Import Price (MIP) on 13 HSN codes to control the surge in imports, the measure has proven ineffective as imports have continued to rise under non-MIP codes.
In a significant crackdown, the Directorate of Revenue Intelligence (DRI) recently seized 100 containers of Chinese fabric at Mundra Port, estimating their total value at ₹200 crore. The containers, which were falsely declared as carrying low-cost fabric, were found to contain high-quality textiles—an apparent attempt to evade import duties. The operation was launched after authorities received intelligence regarding the large-scale misdeclaration of imported goods.
Investigation uncovers large-scale tax evasion
Preliminary investigations suggest that the actual value of the seized fabric far exceeds the declared ₹25 crore. Similar shipments have also been intercepted at other major ports, including Mumbai’s Nhava Sheva Port (Jawaharlal Nehru Port), raising concerns over the scale of the fraudulent operation.
Following the seizure, the DRI has initiated a nationwide investigation to identify those responsible for the illegal imports and to trace the goods to their final destinations across India. Authorities are also working to expose the network of importers involved and to determine whether similar fraudulent practices are taking place at other ports.
Industry associations raise alarm over systemic misdeclaration
The Federation of Surat Textile Traders Association (FOSTTA) had previously lodged a complaint with the DRI, warning of systematic misdeclaration in textile imports. The association alleged that thousands of containers were being imported each month under incorrect classifications to evade the MIP. It further estimated that this widespread malpractice has resulted in a staggering revenue loss of ₹85,000 crore.
According to the trade body, importers have been exploiting loopholes by shifting imports from Chapter 60—where the MIP is imposed—to Chapter 59, which currently lacks such safeguards. The association specifically identified Mundra Port, Mundra SEZ, and Nandiambakkam SEZ (Chennai) as key entry points for these abusive imports, also naming importers allegedly engaged in these practices.
Calls for stronger government intervention
In response to the crisis, the Indian textile industry is now demanding that the government impose MIP across the entire Chapter 60 to curb imports effectively. The Northern India Textile Mills’ Association (NITMA) had previously appealed to Prime Minister Narendra Modi for urgent intervention, citing the severe impact of unchecked fabric imports on the domestic industry and the resulting financial losses to the government.
Ahead of the Union Budget 2025-26, NITMA has urged the government to introduce policy adjustments to restrict uncontrolled fabric imports. The association has specifically called for action against the under-invoicing of synthetic knitted fabrics under Chapter 60 and the misdeclaration of HS codes at Indian ports.
NITMA President Sidharth Khanna highlighted that several importers are circumventing regulations by declaring fabric at approximately $1 per kg, whereas the actual global price ranges between $4–6 per kg. He emphasised the urgent need for stricter regulatory measures to protect the Indian textile industry from further damage.
Outlook
With the DRI’s crackdown uncovering large-scale tax evasion and the textile industry pushing for policy reforms, the Indian government faces mounting pressure to address loopholes in import regulations. The coming months will be crucial in determining the effectiveness of these measures in protecting domestic manufacturers from unfair trade practices.
Source: Fibre2fashion
The United States will impose tariffs on the countries that "harm" America, President Donald Trump has said, as he named China, India and Brazil as high-tariff countries. We're going to put tariffs on outside countries and outside people that really mean harm to us. Well, they mean us harm, but they basically want to make their country good, Trump told House Republicans at a Florida retreat on Monday, the first after he became the president for the second term last week. Look at what others do. China is a tremendous tariff maker, and India and Brazil and so many other countries. So, we're not going to let that happen any longer because we're going to put America first, he said. He said that the US will establish a "very fair system where money is going to come into our coffers and America is going to be very rich again", adding that it will happen "very quickly". Trump underscored that it was time for the US to return to the system that made it "richer and more powerful than ever before. Referring to his inaugural speech last week, Trump said: Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens." "Under the American first economic model, as tariffs on other countries go up, taxes on American workers and businesses will come down and massive numbers of jobs and factories will come home, he said. Earlier, Trump has already talked about slapping 100 per cent tariffs on the BRICS grouping, a bloc that includes India as well. During his address, Trump asked companies to come and set up manufacturing units in the US if they wished to avoid tariffs. If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America. That's what's going to happen at record levels. We're going to have more plants built in the next short period of time than anybody ever envisioned before because the incentive is going to be there because they have no tariff whatsoever, he said. The president said that the US will support companies building plants in America, particularly in industries like pharmaceuticals, semiconductors, and steel. Trump added that his administration would also be placing tariffs on steel, aluminium, copper and other materials required by the US military. We have to bring production back to our country. There was a time when we made one ship a day, and now we can't build a ship. We don't know what the hell we're doing. It's all gone to other locations and other lands, he said. To further return production to the United States, we're going to environmentally free up our rare earth minerals. We have some of the best rare earth anywhere in the world, but we're not allowed to use it because the environmentalists got there first, said the president in his address.
Source: Business Standard
Britain's Secretary of State for Business and Trade, Jonathan Reynolds, on Monday revealed plans to visit India next month with a focus on finalising the Free Trade Agreement (FTA) negotiations as part of the UK government's ambition to elevate the bilateral partnership across all sectors. Addressing India Global Forum's (IGF) annual UK-India Parliamentary Lunch at the House of Lords complex in London, Reynolds highlighted the strength of the bilateral trading relationship which stood at GBP 41 billion in the year until September 2024. However, the Cabinet minister went on to reaffirm the British government's commitment to improve trade between India as the fifth and the UK as the sixth largest economies of the world. I want to reaffirm the UK's commitment to deliver growth for both countries through the trade deal that we're talking about, through the Comprehensive Strategic Partnership and the Technology Security Initiative; and I can let you know exclusively, I hear what you say about urgency, [that] I've just been finalising my own visit to India next month to make sure we proceed on that basis, said Jonathan Reynolds. The visit comes against the backdrop of British Prime Minister Keir Starmer announcing an early 2025 relaunch of UK-India FTA talks, stalled by general elections in both countries last year. The announcement followed his meeting with Prime Minister Narendra Modi on the sidelines of the G20 Summit in Brazil last November. I believe a comprehensive FTA and Bilateral Investment Treaty would be important to the UK, but I also believe it would show the world India is serious about its relationships to global trade, strengthening supply chains with trusted partners and delivering substantial mutual benefits for business and consumers across both countries. And, the rest of the world would stand up and take notice of an agreement of that kind, said Reynolds.
India is a top priority partner for the UK, and we want to elevate that ambition across all aspects of our relationship, but also to take it to new heights, he added. The Secretary of State in the UK's Department for Business and Trade (DBT) also welcomed the launch of a new report by IGF's UK-India Future Forum (UKIFF), entitled Sentiment to Success Future-proofing the UK India Partnership', as a review of the areas of progress along with immediate and actionable strategies to energise the bilateral partnership. The world is at a tipping point, and sentiment alone won't sustain relationships in this era of uncertainty. The UK-India partnership must pivot from nostalgia to action, leveraging India's rising global influence and the UK's unmatched expertise, said IGF Chairman Manoj Ladwa.
Co-hosted with the High Commission of India in the UK, the annual event brought together leading figures from the world of politics, business, finance and technology within the India-UK corridor. It was followed by roundtable discussions on UK-India defence collaboration, reforming governance with technology, quantum as an emerging technology for growth, pharmaceuticals and pandemic preparedness, and decarbonisation in England's Northwest led by Essar Energy Transition (EET). I think we do sit at an interesting geopolitical hinge moment. It's as much a geo-economic hinge moment, as it is geopolitical. It is important, therefore, for us to move quickly with partners of choice; and our leadership in both countries has made it abundantly clear that this is a partnership of choice, Vikram Doraiswami, Indian High Commissioner to the UK, said in his address. British Indian peer Lord Jitesh Gadhia, co-host of the parliamentary event, added: If this lunch has one key objective, then it is to re-energise and renew our commitment to unlocking the full potential from the UK and India working ever more closely together.
Source: Business Standard
Improved collection, mandatory harmonised sorting and a pre-processing infrastructure are essential for the circularity of polyester textiles, insists leading members of the PET value chain in Europe. Petcore Europe, the association covering the PET lifecycle from manufacturing to conversion into packaging, has published a position paper on the EU’s Ecodesign for Sustainable Products Regulation (ESPR) which came into force in July 2024. The organisation says post-consumer garments in the EU represent 85% of textiles waste and they should be designed with recyclability in mind.
Critical measures
‘We stress the pressing need to improve collection efforts, establish mandatory EU-wide harmonised sorting guidelines, implementation of the pre-processing infrastructure to convert collected textile waste to consistent usable feedstock both, mechanical recycling and depolymerisation processes,’ says Petcore. These critical measures are vital for securing the viability of recycling facilities, ensuring the industry can achieve the ambitious targets set by the ESPR Ecodesign framework. It argues that the economic and social impact of textile recycling is undeniable, generating employment, supporting local industries and, ultimately, becoming economically self-sustaining.
EPR ‘key’
Noting the need for extended producer responsibility schemes, Petcore says key elements include ensuring accountability for waste prevention, reuse and recycling targets. ‘These schemes must provide financial support for the collection, sorting, preparation for recycling, and recycling. It advocates a mandatory minimum of 20% recycled content in garments, specifically post-consumer recycled polyester, by 2030. It also supports an initiative for digital product passports for polyester textiles that provide meaningful information on a product’s environmental footprint, composition, repairability, and recyclability. Additionally, ‘We support mandating producer responsibility for garment take-back schemes and ensuring proper traceability for upcycling.’ The position paper calls for a reduction on textile exports to the Global South: ‘A firm ban on the export of unsorted clothing is essential.’
Source: Recycling International
The first container ship of the China-Europe Express, the fastest direct route connecting Europe and China's Yangtze River Delta region, arrived at its destination at the Jade Weser Port in Wilhelmshaven on January 24. Carrying over 1,700 containers of new energy and other high-value goods, the KAWA Ningbo cargo ship completed its non-stop voyage in 26 days—much below 45 days taken earlier. The route is set to operate on a monthly basis. At a ceremony marking the completion of the voyage, Cong Wu, consul general of the Chinese general consulate in Hamburg, said the route plays a positive role in stabilising global product and supply chains and steady development of the new route would create new cooperation opportunities for both regions and inject fresh vitality into bilateral economic growth, a state-controlled news agency in China reported. The route was finalised through a partnership agreement signed at the China International Import Expo last year.
Source: Fibre2fashion
