Synopsis The Cabinet, led by Prime Minister Narendra Modi, approved the Union Budget 2025, which Finance Minister Nirmala Sitharaman will present today—her eighth consecutive budget. Expectations include price reductions on household items, job creation for youth, and income tax concessions for the salaried class. The Cabinet, chaired by Prime Minister Narendra Modi on Saturday approved the Union Budget 2025, set to be announced by Finance Minister Nirmala Sitharaman. Sitharaman is set to present the Union Budget 2025 in Parliament today, marking her eighth consecutive budget. Many are hoping for policy measures that will bring down prices of daily household items. Additionally, youth are looking for announcements that will create more jobs, while the salaried class is expecting income tax concessions. It is anticipated that the budget will strike a balance between economic growth and fiscal prudence while addressing the expectations of taxpayers, businesses, and key industries. One of the most awaited aspects of the budget is tax relief for individuals and businesses. Taxpayers are expecting changes in tax slabs under the new tax regime, with hopes of an increase in exemption limits and standard deductions. There is a demand for making annual income up to Rs10 lakh taxfree. Taxpayers are also expecting an increase in the standard deduction limit, currently set at Rs50,000 under the old tax regime and Rs75,000 under the new tax regime. Sitharaman tabled the Economic Survey 2024-25 on Friday. The survey has estimated India's GDP growing in the range of 6.3-6.8 per cent in FY26, much lower than what is needed to become a developed country, and requires deregulation and reforms in areas like land and labour to stimulate growth.
Source: Economic Times
The Budget 2025-26 to be presented in Parliament on February 1 is expected to announce a slew of steps, intended to bolster the productive capacity of the economy, and domestic manufacturing capabilities. Prime minister Narendra Modi on Tuesday hinted at a new set of policies aimed at promoting value-added exports from India, and reducing the reliance on imported goods. Emphasizing the need for Indian industry to move up the value chain, he said the country should be exporting more finished products, rather than raw materials. “India’s development is not possible only by exporting raw materials. Therefore, we are changing the entire ecosystem and working with a new vision,” he said. Inaugurating the ‘Utkarsh Odisha, Make in Odisha Conclave’ in Bhubaneswar, Modi also underscored that India must seamlessly integrate itself with the global supply chains, amid geopolitical uncertainties and a looming tariff war. Cautioning against the challenges in a rapidly changing world, the prime minister said India cannot rely on fragmented and import-based supply chains. Instead, a robust supply and value chains must be built “within India” to minimise the impact of global fluctuations, he said. The Budget 2025-26 to be presented in Parliament on February 1 is expected to announce a slew of steps, intended to bolster the productive capacity of the economy, and domestic manufacturing capabilities. Modi said the expansion of India’s economy rests on two major pillars: the innovative service sector and quality products. India is changing the trend of extracting minerals and sending them abroad for manufacturing and value addition, only to have those products returned to India, he said. Citing the success of recent “Coldplay events” in Mumbai and Ahmedabad, Modi said that with a vast pool of young talent and a massive concert audience, states such as Odisha India have great possibilities for a “thriving concert economy.” With its 500-kilometer coastline, over 33% forest cover, and endless possibilities for eco-tourism and adventure tourism, Odisha has a supportive environment for the country’s focus on “Wed in India” and “Heal in India” initiatives, he noted. “Today, India is moving on a path of development driven by the aspirations of crores of people. This is an era of AI, and everyone is talking about AI. However, the aspiration of India, not just AI, is the power of our country. Aspiration grows when the needs of the people are fulfilled. In the last decade, the country has witnessed the benefit of empowering crores of people,” he said. “India is building specialised infrastructure at unprecedented speed and scale. It will make India a great destination for investment,” he said. “Eastern India is a growth engine for the country’s development, and Odisha plays a key role in this,” Modi said seeking the support of India Inc to set up industries in the state given abundant minerals and other raw materials. India was changing the trend of extracting minerals and sending them abroad for product manufacturing and value addition, only to have those products returned to India, he said. He highlighted that this responsibility lies with both the government and the industry. Modi also called on industries to support MSMEs and young startups, stressing the importance of research and innovation for growth.
Source: Financial Express
Synopsis Union Budget: The Indian government has spent over Rs 54 lakh crore on capital expenditure over the past 11 years, but private investment and employment concerns remain. Despite substantial spending on infrastructure, the expected boost in private sector investments has not materialized, raising alarms over India's long-term economic growth. Budget 2025: The Indian government has spent over Rs 54 lakh crore on capital expenditure in the past 11 years, according to a report by Systematix Institutional Equities. This includes the budgeted allocation of Rs 11.11 lakh crore for FY25. Despite this massive spending, the report added that the concerns over weak private investment and unemployment persist. The report also highlighted that Rs 38 lakh crore of the total capital. expenditure was allocated after the COVID-19 pandemic. In FY25, capital expenditure will account for 23 per cent of total government spending, reaching levels last seen in FY04. Back then, India experienced one of its strongest nine-year private investment cycles. However, the current situation is different, as private investment has not picked up, despite the government's heavy spending on infrastructure. It said "The worries of lagging private capex and unemployment have persisted since 2012, and in the recent year, as the RBI's KLEMS data and PLFS survey jointly suggest, it has culminated in an unprecedented surge in disguised unemployment and contraction in real wages". A major concern raised in the report is the lack of a significant multiplier effect from this high capital expenditure. Ideally, large government spending should stimulate private investment and economic growth. However, the expected boost in private sector investments has not materialized, leading to renewed calls for even higher infrastructure spending ahead of the Union Budget. The report stated that companies have also raised concerns about a shrinking middle-income segment, pointing towards a structural slowdown in India's long-term economic growth. Over the past decade, the government has focused on two major policy responses to address economic challenges. The first phase involved steps such as resolving bad loans, recapitalizing banks, cutting corporate taxes (in 2019), and improving business conditions through formalization and GST implementation. When these measures failed to boost private investment, the government introduced a second phase of stimulus--massive infrastructure spending, especially on roads and railways--particularly after the pandemic. Policymakers hoped this would trigger private investment and create a ripple effect on economic growth. However, the report suggests that this strategy has not delivered the expected results. Instead of driving growth, it has led to a fiscal burden, even though the government has maintained fiscal discipline, reducing the deficit from its peak of 9.2 per cent of GDP in FY21. As the government prepares for the upcoming Union Budget, the report highlights the challenge of balancing fiscal discipline with the need to stimulate private investment. While the government has adhered to its fiscal deficit reduction plan, the lack of a strong response from private investors and worsening employment conditions raise concerns about India's long-term economic prospects. With growing calls for increased infrastructure spending, policymakers must find ways to make government investments more effective in driving private sector participation and sustainable economic growth.
Source: Economic Times
Prime Minister Modi's upcoming visit to Washington DC will prioritize talks on a limited trade deal with the US, focusing on tariff concessions and investment agreements. This initiative, resembling the US-Japan trade agreement, aims to enhance market access for both nations and boost confidence, resuming promising negotiations from Trump's first term. New Delhi: A limited trade deal with the US that could cover tariff concessions for certain goods and broad agreements on investment will figure high on the agenda of Prime Minister Narendra Modi’s visit to Washington DC. The February meeting will be the first with Donald Trump in his second presidential term. Preliminary talks for a mini trade deal on the lines of the US-Japan trade agreement are on in the government, said people aware of the development. The US and Japan reached a trade agreement regarding market access for certain agricultural and industrial goods During a call with Modi on Monday, Trump “emphasised the importance of India increasing its procurement of American-made security equipment and moving toward a fair bilateral trading relationship,” according to a White House statement. India is also likely to seek investment commitments from the US similar to those in its trade pact with the European Free Trade Association (EFTA), which includes a binding commitment of $100 billion of investments and creation of one million direct local jobs by EFTA bloc companies. Trump’s recent executive order on his administration’s America First trade policy has prompted India to look at the potential of a limited trade agreement.
Commerce Ministry, MEA at work The commerce and industry ministry has already sought inputs from Indian companies on their areas of interest to develop India’s US export strategy. The ministry of external affairs is working closely with it on the limited trade deal with the US, providing the required political support, said the people cited earlier. The possibility of a limited trade pact with the US had been floated during Trump’s first term (2017- 21) but could not be followed through due to the pandemic and subsequent change of guard at the White House. “A trade deal, even partial, will secure enhanced market access for Indian and US companies,” said Harsh V Shringla, former foreign secretary and US ambassador. “More importantly, this will serve as a confidence booster. Significant progress had been made on such a deal during Trump 1.0, and this found mention in the joint statement issued during Trump’s visit to India in February 2020. It should be possible to take this forward, from where we left off in 2020, to an early conclusion.” Shringla played a key role in shaping the Howdy Modi and Namaste Trump events in the US and India, respectively, and made significant contributions to boosting ties both as ambassador to the US (2019-20) and later as foreign secretary (2020-2022).
Pradeep Mehta, secretary general at CUTS International (Consumer Unity & Trust Society), a think tank on global trade issues, said the US’ aggressive posture on trade needs to be dealt with in a businesslike manner. “A few of the prominent high tariffs on upscale goods of American export (and political) interest can be brought down, since this issue hogs all limelight and impedes progress on other matters,” he said. “This can open the door to serious negotiations for a deal covering the whole gamut of trade, technology and investment, which will be beneficial for both India and the US in the longer term.” Legacy trade frictions relating to sectoral interests in agriculture, medical devices, etc, along with standard tariff and non-tariff negotiations, can be picked up from where the two sides left them during Trump’s first term, Mehta said, adding, “Modi's upcoming visit will indicate how far both parties have been able to pave the way for a win-win proposition.” However, commitments on services and movement of professionals are not likely to be a part of any agreement between the US and India. The US is India's largest trading partner. Two-way trade surpassed $118 billion in FY24, with India having a surplus of $32 billion. On Monday, Trump threatened tariffs against India, China and Brazil. Speaking to House Republicans at a Florida retreat, the US President said the three countries were acting in their own interests. “We're going to put tariffs on countries and people that really mean harm to us,” he said. “Well... they mean us harm, but they basically want to make their country good. China is a tremendous tariff maker, and India, Brazil, and so many other countries. (But) we're not going to let that happen any longer because we're going to put America first.”
Source: Economic Times
Synopsis GST will not be charged on penal charges levied by banks and NBFCs, as clarified by the CBIC. This exemption is due to such charges being deemed as breaches of contract terms. Additionally, GST exemption applies to Payment Aggregators for transactions up to Rs 2,000, but not to Payment Gateway services. Goods and Services Tax (GST) will not be applicable on penal charges levied by banks and non-banking finance companies (NBFCs), the CBIC has said. The Central Board of Indirect Taxes and Customs (CBIC) through a circular has also clarified that GST will not be levied on transactions of up to Rs 2,000 facilitated by payment aggregators on online platforms. Clarifying the issue of GST applicability on penal charges levied by banks and NBFCs, the CBIC said penal charges levied by Regulated Entities governed by the RBI are essentially in the nature of charges for breach of terms of contract and hence, do not attract GST. "As recommended by the 55th GST Council, it is hereby clarified that no GST is payable on the penal charges levied by Regulated Entities... for noncompliance with material terms and conditions of loan contract by the borrower," the CBIC said.
AMRG & Associates Senior Partner Rajat Mohan said this clarification is significant as it settles interpretational disputes at the field level. "By reiterating the essence of contractual obligations' that contracts are meant for performance and not breach' the GST Council has eliminated ambiguity regarding the taxability of such charges. The exclusion of penal charges from the GST ambit ensures compliance with RBI directives and prevents undue financial burdens on regulated entities and borrowers," Mohan added. With regard to taxation on payment aggregators, the CBIC said it has received representations seeking clarity on the applicability of GST exemption to Payment Aggregators (PAs) in relation to settlement of up to Rs 2,000 in a single transaction, transacted through credit card, debit card, charge card or other payment card services. Payment Aggregators (PAs) are entities that facilitate e-commerce sites and merchants to accept various payment instruments from their customers without the need for the e-commerce sites and merchants to create a separate payment integration system of their own. In the process, PAs receive payments from customers, pool and transfer them on to the merchants within a specified time period. The CBIC also quoted RBI guidelines which distinguish PAs and Payment Gateways, which provide technology infrastructure to route and facilitate processing of an online payment transaction without any involvement in handling of funds. "It is hereby clarified that GST exemption ... is available to RBI regulated Payment Aggregators (PAs) in relation to settlement of an amount, up to Rs 2,000 in a single transaction, transacted through credit card, debit card, charge card or other payment card services, as PAs fall within the definition of 'acquiring bank'," the CBIC said. The CBIC also clarified that this GST exemption is limited to payment settlement function only, which involves handling of money, and does not cover Payment Gateway services. EY Tax Partner, Saurabh Agarwal said the clarifications issued by the CBIC on interpretative issues demonstrate the Government's commitment to foster a predictable tax environment for businesses. This approach is likely to lead to greater tax certainty and a more conducive business environment.
Source: Economic Times
Synopsis India Budget Finance Minister Nirmala Sitharaman is anticipated to deliver rationalised tax rates and incentives in the upcoming Budget to boost growth without compromising fiscal prudence. Stakeholders expect measures to accelerate infrastructure development, support for bank deposit mobilization, enhancements in the housing market, and incentives for the e-commerce sector, education reforms, renewable energy advancements, and the life insurance sector. Union Budget: Experts from various sectors are hopeful that Finance Minister Nirmala Sitharaman will provide rationalised tax rates and incentives to boost growth without sacrificing fiscal prudence in her February 1 Budget. Industry players are also expecting that the first full Budget of the Modi 3.0 government will come out with more measures to accelerate the infrastructure growth needed to make India a developed nation by 2047. Sitharaman will present the Union Budget for the next fiscal in the Lok Sabha. "We believe that the starting point of the Budget will be the fiscal deficit, and efforts will be made to lower the ratio by 0.5 per cent to probably close to 4.3- 4.4 per cent of GDP for FY26. "Within this framework, the budget would work to maintain, if not increase capex, in the range of Rs 11 lakh crore that will provide a fillip to investment (the revised estimate for FY25 could be lower than what was projected)," said Madan Sabnavis, Chief Economist of Bank of Baroda. From the perspective of banks, a more favourable tax slab for interest on bank deposits will help to provide a level playing field with equity markets and incentives for deposit holders, he added. Sachin Sachdeva, Vice President, Sector Head - Financial Sector Ratings, Icra opined that given the challenges around the mobilisation of deposits from the retail segment, some incentives for retail bank deposits could improve the ability of lenders to garner such deposits and support credit supply. "This is especially important in the backdrop of the proposed changes in the liquidity coverage ratio (LCR) framework as well as moderation in the LCR of banks over past quarters. The moderation in LCR is an outcome of slower growth in retail deposits of banks," Sachdeva said. Aadhar Housing Finance MD and CEO Rishi Anand said the upcoming Budget should focus on reviewing and modifying important regulations that take into account the current state of the housing market essential for making homeownership genuinely affordable. "The existing Rs 2 lakh income tax deduction for housing loan interest should be increased to Rs 4 lakh. Additionally, to support first-time homeowners during the waiting period for possession, this refund should apply to residences that are still under construction for a maximum of two years," Anand added. Easy Pay Managing Director Nilay Patel anticipates continued positive developments for the e-commerce sector, particularly in light of last year's impactful changes. "We hope the government will further build on the reduction in the TDS rate from 1 per cent to 0.1 per cent for e-commerce operators, potentially extending additional support to enhance liquidity and simplify compliance processes," Patel said. WTC Business and Industry Association has presented a comprehensive wishlist of reforms for the education sector to Sitharaman for consideration in the Union Budget 2025. WTC's key expectations for the Budget include integration of technology in education, reducing educational costs, fostering industry-academia partnerships, and tax reforms and skill development. Golden Growth Fund (GGF) CEO Ankur Jalan, a category II AIF, opined that AIF as a tool for wealth diversification has become a preferred choice for affluent individuals, as is evident from the fact that real estate contributed the highest share of investment from AIFs at over Rs 75,400 crore in the first half of FY25 with participation from domestic and foreign investors. "The Budget must endeavour to achieve parity in capital gains on listed and unlisted instruments to make it more attractive for both domestic and foreign investors. Also, gains from investment must be classified on similar lines across instruments so that AIFs too enjoy the benefit," he said. Shanti Education Initiatives Managing Director Vishal Chiripal opined that for India to become a knowledge economy, emphasis on implementing and creating a mindset for research and development-related education should be a government priority. "It is essential to have one single umbrella body for the entire education sector, which streamlines all different streams of education to have a single agenda to ease the regulation for students as well as institutions," Chiripal said. Prashant Tripathy, managing director and chief executive officer, Axis Max Life Insurance, anticipates progressive policy measures that will strengthen India's financial ecosystem and accelerate the journey toward Viksit Bharat by 2047. "We urge the introduction of a distinct tax deduction for life insurance, especially term insurance, under Section 80C of the Income Tax Act. Additionally, extending this benefit under the New Tax Regime would broaden financial protection and social security for a larger population segment," Tripathy said. Parmod Sagar, chairman and managing director, RHI Magnesita India, said that with the support of various policies and budget announcements in recent years, the Indian economy's fundamentals have remained strong and resilient. "We expect the push on the infrastructure sector and investments to continue, creating a ripple effect for the refractory industry to play a crucial role in the growth momentum," Sagar said. Tanya Singhal, industry expert in renewable energy and founder at Mynzo Carbon & SolarArise, said there has been a consistent big push by the government to achieve the net zero target by 2070, growing 24-hour renewable energy in India and promoting climate consciousness among the masses. Singhal suggested the allocation of Rs 500 crore for a "storage innovation fund" to support startups and research institutions developing nextgeneration storage technologies that will benefit the renewable and EV industries, and a tax holiday for new manufacturing units in the advanced chemistry cell (ACC) battery sector.
Source: Economic Times
India’s Finance Minister Nirmala Sitharaman will present Union Budget for next fiscal 2025-26 on February 1 in Parliament in New Delhi. The country’s textile industry is looking for handhold support amid the challenging market conditions. It is likely that the finance minister will take a call on tariff adjustments to align with present situation of the industry. She may also incentivise textile and garment production in the country by policy intervention and higher fund allocations. It is highly expected that the Indian government will support the industry by allocating more fund for the Ministry of Textiles for various schemes. While the present situation in Bangladesh provides an opportunity to increase India’s export share, the country’s textile industry is struggling hard to attract large export orders due to limits of production capacity. Secondly, domestic industry is facing several odds in terms of higher cost of production due to costlier raw materials like fibre, yarn and fabric. These challenges may force the finance minister to think on various options. After lukewarm response, production linked incentive (PLI) scheme is gradually taking space in textile industry. However, the scheme is yet to take off in a full-fledged manner due to several restrictions. Industry organisations are demanding removal of restrictions to harness the schemes full potential. Therefore, the government may ease conditions of PLI scheme with higher allocations. The government may raise the allocation for PLI scheme for the textile sector to ₹60 crore from ₹45 crore for the current fiscal, official sources indicated. The government may cut tariff on raw materials such as polyester and viscose staple fibre. The import duty may also get an ease in imports of textile machinery. Import tariffs are currently in the range of 11-27 per cent on fibre, compared to almost zero duty in Bangladesh. The government may also adjust duty on fabric imports. Industry is raising concerns of flooding of knitted synthetic fabric from China by misdeclarations. Duty adjustment may balance the interests of upstream and downstream value chain of the textile industry.
Source : Fibre2fashion
Surat: Nylon textile weavers in Surat have flagged concerns about a potential price hike, alleging that nylon yarn spinners have formed a cartel to artificially inflate prices amid a market shortage. The Federation of Gujarat Weaver Welfare Association (FOGWWA) on Wednesday urged authorities to take action and ensure an adequate supply of nylon yarn. According to weavers, a fire at a leading nylon spinning unit has disrupted supply. However, they claim that a group of spinners is taking advantage of the situation by halting sales to create an artificial shortage and push prices higher. "I have received complaints from weavers that spinners have stopped selling nylon yarn despite no shortage of raw material. This is an attempt to manipulate prices," said Ashok Jirawala, president of FOGWWA. "If sales don't resume soon, weavers will be forced to take action. I also urge the government to intervene," he said. Industry leaders have also raised concerns about future price manipulation if foreign nylon yarn supply is restricted. "Currently, some spinners are trying to hike prices by controlling supply, despite no real shortage. We fear they may use similar tactics if an anti-dumping duty is imposed on foreign yarn," said Mayur Golwala, Secretary of the Sachin Industrial Cooperative Society. Recently, a fire at a spinning mill destroyed around 2,000 tonnes of yarn stock. Industry sources indicate that it will take time for production to return to normal levels.
Source: Times of India
Synopsis President Droupadi Murmu addressed both Houses of Parliament, marking the start of the Budget Session, which runs from January 31 to April 4 in two phases. Key announcements include expanding Pradhan Mantri Awas Yojana to provide homes for three crore families and extending Ayushman Bharat health insurance to six crore senior citizens aged 70 and above. President Droupadi Murmu on Friday addressed both Houses of Parliament, marking the beginning of the Budget Session. The Union Budget will be presented on February 1. Murmu addressed the joint sitting of the Lok Sabha and the Rajya Sabha at 11 am. The Budget Session will be held from January 31 to April 4 in two phases. The first part of the Session will end on February 13 and the second phase will begin on March 10 Here are the highlights of President Murmu's speech from the Budget session: The decision has been made to expand the Pradhan Mantri Awas Yojana and provide new homes to an additional three crore families. Government working to give appropriate rates to farm produce and increase income of farmers. With the efforts of the government, India is going to become the third biggest economy in the world. Third term of government is witnessing work at thrice the speed of previous administrations. Railways will soon connect Kashmir to Kanyakumari as the UdhampurBaramulla-Srinagar Rail project is now complete. Many employment opportunities being created as various steps taken for economic empowerment of cooperative sector. Government has taken big decisions on issues such as Waqf boards and One Nation, One Election. My government is committed to fulfilling the dream of the middle class of having their own house. Under the Ayushman Bharat scheme, it has been decided to provide health insurance to six crore senior citizens aged seventy years and above. Credit Guarantee Scheme for MSMEs and e-commerce export hubs are encouraging business in all sectors in the country.
My government believes in women-led development in the country...The government aims to have 3 crore 'Lakhpati didi.' Government has started 'Mission Mausam' at a cost of Rs 2,000 crore to make India weather-ready and climate smart. Today, our young entrepreneurs are bringing glory to the country in every field, from startups and sports to space. Our banking and digital payment sakhis are playing a crucial role in connecting people in remote areas to the financial system. That day is not far when India will launch its own human space flight Gaganyaan. Under the National Rural Livelihood Mission, more than ninety-one lakh self-help groups are being empowered. My government has placed special emphasis on preparing new opportunities for education and employment for the youth. My government has made efforts to end feeling of alienation in people of northeast. Our aim is to make India a global innovation powerhouse...In the area of artificial intelligence, India AI Mission has been started. India's metro rail network has now crossed the 1000-kilometre milestone. India has the world's third-largest metro network. To ensure health services to all citizens, 1.75 lakh 'Arogyoa Mandir have been established in the country. Looking at the rising number of cancer patients, custom duty on many cancer medicines has been waived off President Murmu also paid homage to former PM Manmohan Singh who passed away recently. She offered tributes to those who died in Kumbh Mela at Prayagraj. India is making its presence felt as a major global player in field of digital technology. My government has used digital technology as a tool for social justice, equality. Situation in Jammu and Kashmir has changed after abrogation of Article 370.
Source: Economic Times
The exhibition Textiles from Bengal: A Shared Legacy at the Kolkata Centre for Creativity explores Bengal’s textile heritage from the Mughal era to post-partition. Featuring iconic traditions like muslins and jamdani, the exhibit includes a two-day symposium with ...Read More The exhibition Textiles from Bengal: A Shared Legacy opened its doors at the Kolkata Centre for Creativity, offering a profound exploration of Bengal’s textile heritage. This exhibition traces the region’s rich legacy, from the Mughal era to the partition of Bengal into West Bengal and Bangladesh. The afternoon saw Darshan Mekani Shah talk about what compelled her to put this mammoth exhibit and symposium together whilst also celebrating all those along the way who have helped conserve, preserve and carry on the legacy of the crafts of Bengal. Aparna Sen, Jayshree Burman and Paresh Maity, Ruby Palchouduri were also present at the event. The two-day symposium will feature prominent speakers, including textile historians, conservationists, and cultural experts. The discussions delved into the history, techniques, and socio-political narratives that have shaped Bengal’s textile traditions, enriching the experience for attendees. Visitors are immersed in an array of iconic textile traditions such as muslins, kantha, jamdani, Indo-Portuguese embroideries, and Haji rumals. Curator Mayank Mansingh Kaul noted, “This exhibition expands the narrative beyond the celebrated kantha and jamdani, revealing the multifaceted contributions of Bengal’s artisans to global textile culture.” Darshan Shah, emphasized, “For nearly three decades, our Textile Study Centre has preserved Bengal’s textile legacy. This exhibit reignites the dialogue around these traditions and their future in academic and commercial spheres.”
Source: Times of India
Synopsis President Trump announces tariffs of 25% on Mexico and Canada, and 10% on Chinese products, to pressure these countries on migration and drug flow. Impacting trade with major partners, the tariffs could disrupt supply chains and increase U.S. prices. Mexico, Canada, and China vow retaliation, potentially escalating trade tensions. President Donald Trump plans to impose stiff tariffs on Mexico, Canada and China on Saturday, a move aimed at pressuring America's largest trading partners into accepting more migrants and halting the flow of migrants and drugs into the United States. Trump will put a 25% tariff on goods from Mexico and Canada, along with a 10% tariff on Chinese products, Karoline Leavitt, the White House press secretary, said in a news briefing Friday. Speaking to reporters in the Oval Office on Friday, Trump said the tariffs were punishment for Canada, Mexico and China allowing drugs and migrants to flood into the United States. Canada, Mexico and China are America's three largest trading partners, supplying the United States with cars, medicine, shoes, timber, electronics, steel and many other products. Together, they account for more than a third of the goods and services imported to or bought from the United States, supporting tens of millions of U.S. jobs. All three governments have promised to answer Trump's levies with tariffs of their own on U.S. exports, including Florida orange juice, Tennessee whiskey and Kentucky peanut butter. Trump's tariffs would immediately add a surcharge for the importers who bring products across the border, most of which are U.S. companies. In the nearer term, that could disrupt supply chains and lead to shortages, if importers choose not to pay the cost of the tariff. If importers do pay the tariff, it will probably translate into higher prices for some U.S. goods, as those companies generally pass the cost of tariffs on to their customers. Marcelo Ebrard, the Mexican economy minister, said Friday that tariffs would likely lead to shortages in specific goods and that U.S. prices on Mexican goods would increase. "The main impact is clear: Millions of families in the United States would have to pay 25% more," he said. Prime Minister Justin Trudeau of Canada, in a post on the social platform X, said, "No one -- on either side of the border -- wants to see American tariffs on Canadian goods." He added that "if the United States moves ahead, Canada's ready with a forceful and immediate response." A Chinese Embassy spokesperson said China firmly opposed tariffs and that any differences or frictions should be resolved through dialogue. "There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world," the spokesperson said.
Source: Economic Times
Azerbaijan, Turkiye and Uzbekistan recently signed and adopted the Ankara Declaration, the outcome of the second trilateral meeting of the ministers of foreign affairs, trade, economy and transport from the three countries, Azerbaijan’s ministry of foreign affairs announced in a post on X. In addition to a comprehensive action plan aimed at strengthening cooperation in transport and regional connectivity, the declaration includes a reaffirmation of the commitment to enhance collaboration on regional and international issues of common interest; a commitment to fully unlocking the potential in key areas; and a call to improve the efficiency and competitiveness of the Middle Corridor, i.e, the Trans-Caspian International Transport Route (TITR). The Middle Corridor is a trade route from Southeast Asia and China to Europe via Kazakhstan, Caspian Sea (using train ferries to cross the Caspian), Azerbaijan, Georgia and Turkiye. Meanwhile, Turkish foreign minister Hakan Fidan praised the Middle Corridor as the most reliable, swift, and cost-effective trade route connecting Asia and Europe.
Source: Fibre2fashion
The European Union (EU) wants to continue its ongoing collaboration with Bangladesh and explore avenues to build partnerships, including through a Comprehensive Partnership and Cooperation Agreement (CPCA), European Commission (EC) President Ursula von der Leyen recently said. "We remain open to discussing specific needs with sectoral partners and considering additional support that aligns with ongoing initiatives," her letter this month to Bangladesh’s chief adviser Muhammad Yunus said. There is substantial potential under the Global Gateway initiative for EU investments in secure and reliable networks and connectivity, including railways, water resources, climate adaptation, health, digital services and energy, media outlets in Bangladesh reported citing the letter. "In parallel, we are working with your administration to bolster the capacity of key institutions. We intend to maximise the impact of this work by integrating targeted technical assistance to support policy development and effective governance in these sectors, sharing EU experience where relevant," she added. The EC expressed its interest nearly two and a half months after Bangladesh and the EU completed a two-day introductory meeting on the CPCA in the first week of November last year. The EU is the largest trading bloc for Bangladesh, accounting for close to three-fifths of its total exports each year, with zero-duty benefits under the EU's Generalised Scheme of Preferences (GSP) for Everything But Arms (EBA). It accounts for more than 64 per cent of Bangladesh's total apparel exports every year. This GSP benefit is expected to be phased out three years after Bangladesh graduates from the group of least developed countries, which is scheduled for late 2026. Bangladesh exports more than $25 billion worth of goods to the EU every year, with the share of garments being nearly $22 billion.
Source: Fibre2fashion
Indian textile makers’ shares surged on bets they stand to gain from a political turmoil in Bangladesh that threatens to disrupt supply chains. Bangladesh’s textile exporters face the risk of losing business amid political instability that saw violent protests forcing Prime Minister Sheikh Hasina to flee the country on 5 August. The stocks of Indian manufacturers including KPR Mill, Arvind Ltd., Gokaldas Exports Ltd., Vardhman Textiles Ltd., and Welspun Living Ltd. all jumped more than 10% in Mumbai, on expectations of a higher market share. Bangladesh has enjoyed rapid growth in its exports of ready-made garments and other textile products, making it the second-largest exporter of such products in the world behind only China. The country’s textile exports were worth $45 billion in 2022, more than double that of India. “If there are frequent disruptions to the supply chains in Bangladesh then global buyers may look at alternatives,” said Prerna Jhunjhunwala, an analyst at Elara Securities Ltd. “Indian players are well poised to take market share in that case as they have vertically integrated capacity to service the needs of global companies.” Bangladesh’s military has promised to install a new interim government in the country after Hasina, one of Asia’s longest-serving leaders, resigned and fled the country amid protests that left scores of people dead.
Source: Fashion Network
As the seventh most climate-vulnerable country, Bangladesh urgently needs to take adequate adaptation measures to mitigate risks of job losses, reduced competitiveness and heightened vulnerability to climate shocks, according to a report commissioned by Laudes Foundation and H&M Foundation. The report, titled ‘Just Climate Transitions in Bangladesh—Accelerating Multi-stakeholder Action in Textile and Apparel and Construction Industries’, by mission-driven consulting firm FSG was released recently at the Just Transition Forum for Bangladesh in Dhaka. The textile and apparel, and construction sectors, together contribute 74 per cent of the industrial gross domestic product (GDP), 80 per cent of the workforce and are responsible for half of industrial emissions. These vital sectors are therefore critical to industry transition in Bangladesh, the report noted. Pursuing just transitions presents a pathway for Bangladesh to protect its development trajectory, generating opportunities for business and the potential to create new, high-quality jobs and access to new markets, a released from the Laudes Foundation said. It highlights the urgency for advancing just transitions identifying the opportunities for policymakers, industry leaders, financial actors, youth and civil society in Bangladesh as well as partners globally to take action. A holistic approach is urgently needed to decarbonise, build resilience and secure the long-term competitiveness of the textile and apparel, and construction sectors while creating decent work opportunities, the report said, outlining strategies to ensure that the voices and lived experiences of workers are central to climate transition planning and implementation. Drawing on inputs from over 100 Bangladeshi and international stakeholders, the report presents ten scenarios: multiple potential futures that explore the entire spectrum of possibilities, positive and negative within both sectors. Two scenarios—Green Forest (sustainable fashion with low unemployment and competitive markets) and Green City (low-carbon, climate-resilient construction)—showcase the full potential of industry transitions to protect industry competitiveness and resilience, create quality jobs and fair outcomes for workers and their communities. To fully realise the promise of these best-case scenarios, the report calls on industry, worker rights organisations, policymakers, development organisations, skilling providers, finance, and philanthropy to collaborate on developing new approaches and scaling existing sound practices.
Source : Fibre2fashion
Mexico’s rapidly expanding trade with China, evidenced by a 64-per cent year-on-year (YoY) increase in inspection and audit demand in 2024, along with the growth of nearshoring projects, has raised questions as to whether Chinese businesses are increasingly using Mexico as a proxy to bypass existing US tariffs on goods made in China, according to QIMA. Data collected last year by the testing, inspection, certification and compliance company shows US demand for inspections and audits in Mexico has been growing at a fraction of the pace of Mexican businesses’ demand for China inspections and audits. This suggests that, at least for fast-moving consumer goods, the lion’s share of Mexico’s current sourcing from China is likely intended for its domestic market. “And while relocating final product assembly closer to the US market may be attractive for Chinese exporters at the moment, they will have to carefully weigh their options in the light of the potential higher US tariffs against both China and Mexico (as well as revision of the United States-Mexico-Canada trade agreement slated for 2026),” QIMA noted in a release. After contributing to Mexico’s crowning as the largest US trading partner in 2023, US nearshoring in Mexico may now be at risk due to tariff threats from the Donald Trump administration. However, QIMA data indicates that US-based brands and retailers are actively exploring other sourcing partnerships across Latin and South America, including in Guatemala, Peru, Brazil, and the Dominican Republic, where US demand for inspections and audits has grown by 20 per cent YoY in 2024. Such diversification of supplier portfolios is likely to make US nearshoring projects less vulnerable to tariff tensions with Mexico, QIMA observed. Overall, aggregated QIMA data on inspection and audit demand also suggests that nearshoring has only been growing slowly in the West. After initially redirecting some sourcing volumes closer to home, both US-based and European Union--based buyers now seem to favour diversifying their overseas procurement further, without significantly increasing the share of nearshoring in their sourcing portfolios. This limited incorporation of local sourcing suggests a growing trend towards ‘multi-shoring’ and the use of regional supply hubs as part of brands’ strategies for risk mitigation and enhanced supply chain flexibility, QIMA added.
Source: Fibre2fashion
After two years of “extensive research,” the European Union-backed tExtended project is entering Phase 2 of development with the aim of finding solutions to the “growing issue of textile waste” both at the European and global levels. The project seeks to introduce an “innovative approach” to the cycling of discarded textiles with the development of its blueprint which, according to tExtended, will definite the implementation of a circular textile ecosystem, including waste reduction, extended reuse of textile products and efficient recycling of end-of-life textiles. Phase 2 also involves preparation to test the solutions in an “industrial-urban symbiosis collaborative real-scale demonstrator” to show its potential to reduce textile waste by 80 percent. Aimplas, the Plastics Technology Centre, a Spain-based technological center that provides solutions to the plastics industry, will play a key role in several areas of the second phase.
Regarding the identification and classification of materials, Aimplas is working with technology like near-infrared sorting, red-green-blue (RGB) cameras and hyperspectral cameras in collaboration with the VTT Technical Research Centre of Finland. The goal is to assess the composition of textiles to meet recycling requirements. The centers also will attempt to develop methods to separate nontextile parts, like electrostatic and triboelectric separation, and classify garments by type via air separation using equipment adapted to process textiles on a pilot scale. In addition, they are examining the dissolution of polyvinyl chloride (PVC) in textile scrap to facilitate the separation of other materials and improve recycling once separated. According to Aimplas, it also is working on a chemical recycling process for polyurethane foams to recover polyols that can be reintegrated into polyurethane foam formulations. “This integrated approach will allow Aimplas to significantly advance the sustainability of textile and plastic materials, promoting innovative solutions for recycling and the circular economy” Aimplas chemical recycling researcher Nacho Montesinos says. Aimplas says these Phase 2 initiatives will take place in different formats in the countries of the tExtended consortium: Finland, Sweden, Belgium, France, Ireland, Latvia, Slovakia, Spain, Portugal and Switzerland. While the “real-scale demonstrator” will be carried out on a European level, Aimplas says tExtended also will perform localized, regional studies to evaluate the replication potential.
“The road towards the development of the tExtended masterplan for a sustainable textile ecosystem has already brought the project to reach relevant successes,” Aimplas says in a news release. “Especially, the results obtained about improving upcycling processes and in designing a future data-driven circular ecosystem will influence the upcoming work towards the tExtended goals.” The four-year project, which is funded by the European Commission’s Horizon Europe research and innovation program, also focuses on the social aspect of the textiles sector by involving local community actors in the project. Through citizens’ participation in different actions on presorting and returning used textiles, Aimplas says, tExtended hopes to raise awareness about the sustainability and circularity of textiles.
Source: Recycling Today
KARACHI (Web Desk) - Pakistan Ambassador to Saudi Arabia Ahmad Farooq identified textiles, agriculture and red meat as key sectors for Pakistani businesses to focus on in order to increase the country’s exports to the Kingdom. Farooq identified the key sectors during his visit to the Karachi Chambers of Commerce and Industry (KCCI), where he met with leading Pakistani businesspersons and industrialists, according to the KCCI. The ambassador highlighted that Pakistan’s exports to the Kingdom had registered a 40 percent increase during 2023-24, with the information technology (IT) sector witnessing an impressive 50 percent growth. Pakistan and Saudi Arabia last year signed 34 agreements worth nearly $3 billion, of which, memorandums of understanding (MoUs) worth $700 million have already entered the implementation stage, according to Farooq. “We want large businesses to connect with local distributors in Saudi Arabia to facilitate exports,” he was quoted as saying by the KCCI. “A list of key exporters in these sectors should be shared with the [Pakistani] embassy so we can work together to strengthen trade relations.” Farooq said Pakistani textile, agriculture and meat (beef and mutton) products had already seen a “remarkable growth” in the Saudi market, adding that the Kingdom offers vast opportunities for Pakistani businesses. “The purpose of my visit is to discuss business opportunities with the Karachi business community and update them on how Pakistan’s embassy can support them in accessing the Saudi market,” he added. Speaking about the rising demand for skilled manpower, the Pakistani envoy said more than 3 million Pakistanis were currently living in the Kingdom, however, 97 percent of them were “blue-collar workers.”
Source: Dunyanews
