citi-news letter
TRANSCRIPT
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Piyush Goyal asks industry to flag non-tariff barriers in exports
FM announces plan to monetise assets, realise Rs 6 trillion till
2024-25
Panel aims to double manufacturing exports in 5 years,
slash imports
Asset monetisation will have multiplier impact on economy:
Amitabh Kant, NITI Aayog
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2 CITI-NEWS LETTER
Piyush Goyal asks industry to flag non-tariff barriers in exports
FM announces plan to monetise assets, realise Rs 6 trillion till 2024-25
Panel aims to double manufacturing exports in 5 years, slash imports
Asset monetisation will have multiplier impact on economy: Amitabh Kant, NITI Aayog
Industry seeks RoDTEP-like scheme for service exports: Check details here
Business activity at pre-Covid levels for 2nd week in a row
GST: E-way bill generation maintains momentum in August
Too Soon To Predict Indo-Afghan Trade Future: FIEO DG
What it’ll take to achieve goods exports of $400 billion
Reboot to reset: On India-U.S. trade ties
Andhra Pradesh woos Bengal investors
Indian textiles sector attracts UAE investments
Lower costs, ink FTAs to push exports: CEO panel
IIT Delhi researchers develop modified cotton fabric which adsorbs air pollutants
Roots of economic recovery deepen in July as Covid restrictions ease: ICRA
Cottonseed firms face double whammy this kharif season
Cotton acreage to come down by 15%
Grasim Industries Rating ‘add’; Ebitda was in line with estimate in Q1
The magic of Baluchari weaves
How large is the Textile Bags industry, and how quickly is it expected to grow?
Sewing tradition into wedding finery
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Bangladesh: End of yarn price chaos signals cooperation among apparel, textile sectors
How Lenzing is promoting transparency within the fashion industry's supply chains
Spinnova deal with The North Face
Why is used clothing popular across Africa?
Nepal's trade body wants to raise exports to $7 bn by 2025
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NATIONAL
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GLOBAL
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3 CITI-NEWS LETTER
NATIONAL:
Piyush Goyal asks industry to flag non-tariff barriers in exports
(Source: Financial Express, August 24, 2021)
Urging domestic industry to work on improving its competitiveness and help the country
realise an ambitious merchandise export target of $400 billion for FY22, Goyal said, “The
key to success is to focus on goals, not obstacles.”
Highlighting the growth in the start-up ecosystem, the minister said over 54,000 start-
ups were providing more than 5.5 lakh jobs, and more than 20 lakh jobs will be created
by 50,000 new start-ups in the next five years.
Concerned about protectionism by stealth adopted by some nations, commerce and
industry minister Piyush Goyal on Monday asked industry associations to flag non-tariff
barriers (NTBs) faced by Indian exporters in various countries so that New Delhi can firm
up appropriate responses wherever feasible.
Urging domestic industry to work on improving its competitiveness and help the country
realise an ambitious merchandise export target of $400 billion for FY22, Goyal said, “The
key to success is to focus on goals, not obstacles.” Merchandise exports until the second
week of August this fiscal jumped 71% from a year before and 23% over the same period
in FY20 (pre-pandemic level), the minister said.
Highlighting the growth in the start-up ecosystem, the minister said over 54,000 start-
ups were providing more than 5.5 lakh jobs, and more than 20 lakh jobs will be created
by 50,000 new start-ups in the next five years.
FE had earlier reported that major developed and developing countries, such as the US,
China, South Korea, Japan and those in the EU, had put up huge NTBs to discourage
“undesirable imports”, even though they claim to maintain a low-tariff regime.
The US had put in place as many as 8,453 NTBs, followed by the EU (3,119), China (2,971),
South Korea (1,929) and Japan (1,881), according to a commerce ministry analysis last
year, based on World Trade Organization data. In contrast, India has imposed only 504
NTBs.
While non-tariff measures are not always aimed at curbing imports — for instance, safety,
quality and environmental standards are put in place by all countries for imported
products — what has often worried analysts is that they can be abused for trade
protectionism.
Goyal highlighted incentives for manufacturing through the production-linked incentive
schemes and the need to focus on 24 sectors to attract investment. He also emphasised
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4 CITI-NEWS LETTER
the “One District, One Product” programme to create a pool of 739 products for exports
from 739 districts. Similarly, he highlighted the India Industrial Land Bank for providing
a GIS-enabled database of industrial areas. Industry should suggest areas for intervention
through research, handholding of exporters/ manufacturers, deeper engagement with
states and greater engagement with overseas missions, among others, to realise the export
target, he said.
Home
FM announces plan to monetise assets, realise Rs 6 trillion till 2024-25
(Source: Nikunj Ohri & Indivjal Dhasmana, Business Standard, August 24, 2021)
The plan covers 20 asset classes spread over 12 line ministries and departments
Finance Minister Nirmala Sitharaman on Monday announced a pipeline of assets the
government is looking to monetise to collect about Rs 6 trillion to partly fund its
ambitious infrastructure projects over four years ending 2024-25. About Rs 88,000 crore
will be realised through asset monetisation in the current financial year.
Sitharaman, however, clarified that the ownership of all these
assets would remain with the government, and there would be a
mandatory hand-back of assets after a certain time period. “So,
the government is not selling away these assets,” she said.
The National Monetisation Pipeline (NMP) will constitute 14
per cent of the Centre’s share of Rs 43.29 trillion in the National
Infrastructure Pipeline (NIP). Global players such as
Blackstone, Blackrock, and Macquarie have shown interest in
participating in the monetisation process.
The plan covers 20 asset classes spread over 12 line ministries
and departments. The top three sectors by value are roads (Rs
1.6 trillion), railways (1.5 trillion) and power (Rs 85,032 crore).
The NMP does not include land, but lays the road map for
monetising brownfield projects where investments have already
been made, where a completed asset is languishing or which is
not fully utilised, Sitharaman said.
“By bringing private participation, we will be able to monetise these assets better and
resources obtained through monetisation would be used for putting further investment
into infrastructure building,” she added.
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5 CITI-NEWS LETTER
Sitharaman said the asset monetisation programme is aimed at tapping private sector
investment for new infrastructure creation, and is necessary for creating employment
opportunities, enabling high economic growth, and seamlessly integrating the rural and
semi-urban areas for the overall public welfare.
Contractual partnerships for the execution of the asset monetisation pipeline will be with
key performance indicators and performance standards, she said.
“They are all de-risked assets, and the value from the consideration and private
investment which will come into maintaining it and optimally utilising it will generate
greater value and unlock resources for the economy,” she said.
The NMP will run parallel to the infrastructure creation road map of the government from
the current financial year, Sitharaman said. The Centre’s share is about 39 per cent in the
Rs 111-trillion NIP.
In the roads sector, about 26,700-km stretch would be monetised to mop up around Rs
1.6 trillion. The National Highway Authority of India (NHAI) and the Ministry of Road
Transport and Highways will drive this through the toll, operate and transfer (TOT) and
Infrastructure Investment Trusts (InvITs) models.
The plan includes monetising power transmission lines of 28,609 ckt km to garner Rs
45,200 crore. These will be driven by Power Grid Corporation. Monetisation of hydro and
solar power generation assets of 6 Gw would help the government realise Rs 39,832 crore,
and would be undertaken by National Thermal Power Corporation, National
Hydroelectric Power Corporation, and NLC India. Natural gas pipeline of 8,154 km would
be monetised by GAIL with an indicative value of Rs 24,462 crore.
The plan also includes petroleum product pipelines of 3,930 km to be monetised by
Indian Oil Corporation, Hindustan Petroleum Corporation and the Ministry of Petroleum
and Natural Gas. This would help in realising Rs 22,503 crore through public private
partnerships (PPPs) and InvITs.
The government will also monetise warehousing assets of 210 lakh MT to realise Rs
28,900 crore. These assets are currently owned by Food Corporation of India and the
Department of Food and Public Distribution.
For railways, the plan is to monetise railway stations, passenger trains, good sheds,
Konkan Railway, Hill Railways, dedicated freight corridor, and railway stadiums to get Rs
1.52 trillion. In the telecom sector, 2.86 lakh km fibre and 14,917 towers of BSNL and
MTNL are planned to be monetised that will help in realising about Rs 35,100 crore.
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6 CITI-NEWS LETTER
In aviation, the plan is to sell 25 airports and reduce the Airport Authority of India's (AAI)
stake in existing airports such as Delhi, Mumbai, Hyderabad, and Bangalore. This would
garner proceeds of Rs 20,782 crore.
In the shipping sector, 31 projects in nine major ports would be monetised to realise Rs
12,828 crore.
In the coal mining sector, 160 projects have been identified involving a value of Rs 28,747
crore. In sports, two national stadiums and two regional centres would be monetised to
get a value of Rs 11,450 crore. In urban real estate, redevelopment of colonies and
hospitality assets worth Rs 15,000 crore will be monetised.
“This will be like a PPP where the private sector runs the asset for a period of time but
hands it back to the government subsequently. The assets and transactions identified
under the NMP are expected to be rolled out through a range of instruments,” CARE
Ratings said in a note post the announcement.
Sitharaman while announcing the plan said it's important that India recognises the time
has come for making the most out of our assets. “The economy needs more resources, the
economy wants that kind of liquidity and that kind of value unlocking with which we can
move forward.”
Sitharaman further enumerated the reforms and initiatives undertaken by the Narendra
Modi government towards accelerated infrastructure development and for incentivising
private sector investments. This included the recent scheme to incentivise state
governments to recycle their assets for fast-tracking greenfield infrastructure.
The announcement of the plan is timely, and will provide a much-needed boost to the
economy by creating more resources and liquidity in the market, said Alok Saraf, partner
at Grant Thornton Bharat.
“This is likely to support the launch of more investments in roads, power and other similar
sectors and will lead to optimisation in the utilisation of assets owned by the government.
This announcement comes at a point where the market is bullish and FDI inflow has
grown over 40 per cent, hinting on India being a preferred investment destination
amongst global investors. This asset monetisation model will not only lead to better
financing structures and mechanisms, but participation of the private sector will also give
push to digitisation and innovation,” Saraf said.
Handholding states
Nodal officers have been appointed by 26 states and Union Territories, and four states
have created their pipeline of assets that can be monetised, NITI Aayog CEO Amitabh
Kant said. Most states have shown willingness to monetise their assets, he said.
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7 CITI-NEWS LETTER
To nudge states to participate in the exercise, the Centre has already announced up to Rs
5,000 crore financial assistance, which is budgeted as interest-free loan if they divest and
monetise their assets, or list state-owned entities on the exchanges, Sitharaman said.
“We are with the states, we want to work together with the states...central ministries now
only need to gear up towards taking this initiative forward,” said Kant.
Home
Panel aims to double manufacturing exports in 5 years, slash imports
(Source: Banikinkar Pattanayak, Financial Express, August 24, 2021)
The Steering Committee for Advancing Local Value-Add and Exports (SCALE), a joint
government and industry panel under Welspun Group chairman BK Goenka, has said
focus on these three critical factors would catalyse incremental domestic value addition of
$350-380 billion over the next five years.
The panel has worked out action plans for 24 priority sectors.
A government-backed panel has firmed up a roadmap to double manufacturing exports
over the next five years, reduce imports by two-thirds in select sectors and drive up annual
domestic consumption growth to about 9% from roughly 7% in a normal year under the
Atmanirbhar Bharat initiative.
The Steering Committee for Advancing Local Value-Add and Exports (SCALE), a joint
government and industry panel under Welspun Group chairman BK Goenka, has said
focus on these three critical factors would catalyse incremental domestic value addition
of $350-380 billion over the next five years.
India’s manufacturing exports stood at $229 billion in 2019 (before the pandemic), or
43% of its total — both merchandise and services — exports. In contrast, manufacturing
goods comprised 80% of the total exports of Vietnam, 70% of Malaysia and 56% of
Thailand, according to the panel. Of course, India’s total exports of $533 billion were way
ahead of these nations, since they are not major players in the services sector.
The SCALE committee is set up under the commerce and industry ministry.
The 13 production-linked incentive (PLI) schemes, with proposed incentives of almost `2
lakh crore over five years, will be a major driver of domestic manufacturing, it said. The
panel was tasked with improving the growth of manufacturing sector, whose share in the
GDP has remained stagnant at around 16% for decades now.
The panel has worked out action plans for 24 priority sectors. These include electronics,
auto components, textiles, steel, aluminium, marine products, ready-to-eat and processed
fruit & vegetable, agrochemicals, certain electric vehicles and integrated circuits, toys,
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8 CITI-NEWS LETTER
furniture, ethanol, ceramics, set-top boxes, robotics, televisions, close-circuit cameras,
drones, medical devices, sporting goods and gym equipment.
Home
Asset monetisation will have multiplier impact on economy: Amitabh Kant,
NITI Aayog
(Source: Yogima Seth Sharma, Economic Times, August 23, 2021)
"The ultimate objective of NMP is to enable accelerated infrastructure creation and
modernisation of services for a multiplier impact on the economy."
The monetisation of assets, as laid out in the National Monetisation Pipeline, will have a
multiplier impact on the economy and will give a push to growth and employment, NITI
Aayog CEO Amitabh Kanttells ET's Yogima Seth Sharma in an interview. Edited excerpts:
NMP has set a target of Rs 88,000 crore for this year. We are already five months into the
fiscal year so whatis the plan to fasttrack the implementation of NMP to achieve the FY22
target? National Monetisation Pipeline (NMP) aims to enable a systematic approach.
Home
Industry seeks RoDTEP-like scheme for service exports: Check details here
(Source: Shreya Nandi, Business Standard, August 24, 2021)
The scheme - Duty Remission of Export of Services Scheme or DRESS - will reimburse
the un-refunded taxes and duties embedded in services exports
The industry has urged the Centre to roll out a scheme to boost services export and
incorporate it as a part of the new foreign trade policy that is expected to kick in from
October.
The scheme — Duty Remission of Export of Services Scheme or DRESS — will reimburse
the un-refunded taxes and duties embedded in services exports, Maneck Davar,
chairman, Services Export Promotion Council (SEPC) told Business Standard, adding
that the scheme, if implemented, will increase competitiveness of services exporters in
the country.
The scheme will support services exports and focus on issues such as employment
generation, look into the needs of specific sectors, support small businesses, and remove
the burden of un-refunded taxes, levies on the lines of Remission of Duties and Taxes on
Export Products (RoDTEP) scheme for merchandise exports.
Home
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Business activity at pre-Covid levels for 2nd week in a row
(Source: Economic Times, August 23, 2021)
Business activity in India stayed buoyant for the second week in a row, with the Nomura
India Business Resumption Index (NIBRI) rising to 100.8 for the week ended August 22.
The index was at 100.1 in the preceding week. Business activity in India stayed buoyant
for the second week in a row, with the Nomura India Business Resumption Index (NIBRI)
rising to 100.8 for the week ended August 22. The index was at 100.1 in the preceding
week. Nomura expects a 2-3 percentage point (PP) rise in the NIBRI as mobility is yet to
normalise fully. “While the NIBRI has reached its pre-pandemic level, Google mobility
remains 13- 14pp below normal, suggesting
further scope for the NIBRI to rise by 2-3pp, once
mobility fully normalises,” Nomura said on
Monday. It, however, cautioned that the risk of a
third Covid-19 wave remains, though August has
not seen a flare-up in cases and the vaccination
pace has improved to 5.1million doses per day
As per Nomura’s estimate, economic growth in
the second quarter (April-June) contracted
sequentially by 4.3%, but rose 29.4% year-on-year
compared with the consensus of 20.5%.
Home
GST: E-way bill generation maintains momentum in August
(Source: Financial Express, August 23, 2021)
Going by the trend, the daily average is expected to pick up further in August. Between
August 1 and 22, as many as 4.56 crore e-way bills were generated.……….
Home
Too Soon To Predict Indo-Afghan Trade Future: FIEO DG
(Source: Business World, August 23, 2021)
In the past few days, several reports have emerged about how import-export trade in
India, the largest beneficiary of Afghanistan's exports, is at a halt which is taking a toll on
the people in the business due to their stuck payments.
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10 CITI-NEWS LETTER
The recent takeover of Afghanistan by the Taliban forces has put the entire world upside
down, in many terms. From the emerging humanitarian crisis to the economy, trade to
import-export business, everything is at stake, especially for South Asian countries
including India.
In the past few days, several reports have emerged about how import-export trade in
India, the largest beneficiary of Afghanistan's exports, is at a halt which is taking a toll on
the people in the business due to their stuck payments.
Ajay Sahai, Director General and CEO, Federation of Indian Export Organisation (FIEO)
said, “The recent political development in Afghanistan has caused uncertainty in trade
and businesses, and we are watching the development closely. It has impacted the flow of
trade between the two countries (India and Afghanistan). It is too early to predict what
will happen in the future. However, we feel that over a period of time the stability and
predictability in trade will be established.”
As the intense crisis unfolds in Afghanistan with each passing day, there are a lot of
exporters who are worried about the stuck payment and current situation. “The situation
is quite fluid and thus waiting and watching is the best policy. We have advised exporters
to go for credit cover to tide over the payment problem. The exporters who still have
delivery time left or otherwise also are postponing exports,” Sahai added.
The major Afghanistan exports to India consist of cereals, sugar, pharmaceuticals,
apparel, textiles, tea, coffee, spices, tobacco, and machinery including transmission
towers. Meanwhile, Indian exports to Afghanistan consist of coffee, tea, cotton, toys,
footwear, and several other consumable items.
Talking about the uncertainty among exporters, whether they should continue the
operation in Afghanistan or not. Sahai said, “Yes, their concerns are genuine but they
should not hurry their decision as all aspects need to be evaluated to arrive at a well
thought conclusion: political, economic, logistics, banking, currency movement, etc.”
Meanwhile, commercial traffic across Pakistan and Afghanistan's border at the Spin
Boldak/Chaman crossing was seen, on Thursday, which further depended on the worries
of Indian traders.
However, to clear the confusion of any future trade with the country, Sahai said, “Let us
not rush to a decision . We are hopeful that the situation will get clear within the next few
days and whatever instruction is provided by our Government will be followed by our
exporters/importers.”
Few have predicted that the halt on Indian trade by the Taliban can affect the Indian
economy to a certain extent and the whole situation is a bad sign for the Indian economy.
Sahai said, “The Indian economy is primarily domestic driven. Moreover, Afghanistan’s
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11 CITI-NEWS LETTER
share in India’s exports is miniscule and thus I would say that economically, it does not
affect us.”
Home
What it’ll take to achieve goods exports of $400 billion
(Source: Ajit Ranade, Livemint, August 24, 2021)
We have a ready blueprint for export success but here are seven points that demand
attention.
We are aiming for merchandise exports of $450 billion in a couple of years." This was a
statement from India’s minister for commerce and industry. “We are concentrating on
higher value products such as engineering, drugs and pharmaceuticals, leather and
textiles," he added. In addition to the pursuit of free trade agreements, the minister
mentioned that tax and trade reforms were also necessary, as well as a decrease in
transaction costs. The commerce secretary too assured us that the present fiscal year’s
exports, growing between 25% and 30%, were ahead of target, and saw no reason why
India couldn’t reach an audacious goal of $450 billion in a couple of years. A strategy
paper to double exports in three years had been prepared by his ministry.
Do these statements sound familiar? They are very similar to current conversations
around India’s trade policy and ambitions. But alas, these statements are from 10 years
ago. Hence, you can be excused if you can’t shake off a feeling of deja vu. In 2010-11,
India’s growth rate of merchandise exports was 37.5%, and there was tremendous export
optimism. Reaching $450 billion was seen to be just around the corner. India’s export-to-
gross domestic product (GDP) ratio, at a mere 17%, was seen as too low compared to Asian
peers like Thailand at 66%, or even South Africa at 27%.
Ten years later, we are back to focusing on exports as a major driver of growth. It is
opportune because the world economy led by two of its largest economies, the US and
China, is literally booming. These two economies make up nearly 40% of global GDP and
they will clock an average growth of 5% over the next two years. That is the equivalent of
India’s economy growing at 50%, since it is about one-tenth their size. Buzzing
international trade is manifest in high commodity prices, skyrocketing freight charges,
container and ship shortages, and overflowing order books. Surely, this is India’s
opportunity to seize, and even if it manages to increase its share of manufactured exports
in the world from 1.5% to 3%, it would have doubled its exports. As such, the run-rate of
exports in the first three months of this fiscal indicates that a $400 billion target is
achievable. This target was underlined by the Prime Minister himself in an address to
diplomatic missions overseas. Clearly, economic diplomacy will also be intensively used
to serve the cause of energizing exports. After a lacklustre five years of cumulative zero
growth, prospects are bright for a stellar export performance in the next couple of years,
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12 CITI-NEWS LETTER
both for manufactured goods and services. That is mostly due to strong economic growth
in the developed world, which in turn is fuelled by vaccine optimism and fiscal stimulus.
That growth boom has a strong base effect, but it is likely to sustain for a couple of years.
The blueprint for doubling India’s exports in three years was written in great detail 10
years ago. It just needs to be dusted and re-read. And maybe updated to incorporate new
opportunities. For instance, India’s Special Economic Zones policy needs a reboot. The
key determinant of success is implementation.
As we embark on an ambitious yet attainable target, here are seven important
considerations. First is the importance of free trade agreements (FTAs). Our biggest trade
partner (including services) is the US, with which we do not have an FTA. Clearly, an FTA
is not a prerequisite to keep our export engine chugging. In fact, almost three-fourths of
India’s exports are outside the ambit of FTAs. So while we aggressively pursue trade and
investment treaties with the EU, Australia, Canada and the US, that effort should not
stymie export growth. Secondly, nearly 80% of our exports are from only 21 chapters of
the Harmonised System (HS) of codes for classifying goods. The remaining 78 of 99 HS
chapters lie underused. Of these, there are 24 chapters that contribute between $1 and $4
billion, and need focused attention to double exports. Thirdly,we must ensure that
initiatives like Atmanirbhar Bharat (self reliance) or production-linked incentives (PLIs)
do not become a camouflage for protectionism. Import substitution as a strategy is fine
only if done with low tariff protection and subject to the same benchmarks of quality.
Fourthly, export incentives must be generous enough to negate the effect of domestic
taxation, in line with the maxim that “you cannot export taxes". Fifth, the embrace of
global value chains means that our exports will have significant import content. Hence,
tariff barriers for imports have to be modest. The counter to this is that exporters get their
import duties refunded, or that they can take the route of advance licensing. But every
such minutiae is an invitation to delays, paperwork and cumbersome processes, if not
corruption. Why not just keep tariffs modest and let exporters focus on enhancing their
competitiveness? The sixth aspect is the rupee’s exchange rate. Even the Reserve Bank of
India has said that the currency is overvalued, and huge dollar inflows on the capital
account are not helping. For exports, a slight bias towards an undervalued currency is
preferable. India has a current account deficit, so it should not fear being labelled a
‘currency manipulator’. And seventh is plug-and-play access to global markets for small
enterprises. Omnipresent global e-commerce players should be the conduit for this,
where a buyer in remote Alaska can click on an item to be shipped from Coimbatore. Are
all our systems geared to make this happen? Or will the paperwork, tax, foreign exchange
and customs requirements defeat this potential. That’s the litmus test.
Ajit Ranade is chief economist at Aditya Birla Group.
Home
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13 CITI-NEWS LETTER
Reboot to reset: On India-U.S. trade ties
(Source: The Hindu, August 21, 2021)
With Indo-U.S. trade deal off, it is time India reorients its global economic engagement
India’s largest trading partner, and one with whom it has a significant trade………
Home
Andhra Pradesh woos Bengal investors
(Source: The Hans India, August 23, 2021)
Within days of beginning of the relaxations of the lockdown norms by the Bengal
government, theAndhra Pradesh government-led by YS Jagan Mohan Reddy has taken
the first step to woo in investments from Mamata's Bengal. In what can be billed as the
first physical investors' meet post pandemic, a fairly large contingent of top officials from
the AP Economic Development Board, AP Industrial Infrastructure Corporation and the
department of commerce and industries and export promotion, came down to Kolkata to
have one-on-one and joint sessions with the virtual who's who of Kolkata with an aim to
get major investments into Andhra Pradesh.
The AP team, led by JVN Subramanyam, Director, Industries and Commerce and Vice
Chairman and MD, AP Industrial Infrastructure Corporation (APIIC) and Krishna GV
Giri, Executive Vice Chairman, AP Economic Development Board and Advisor
(industries), government of AP, participated at the "Destination Andhra Pradesh"
business meet jointly organised by APEDB and MCC.
"We are very excited about reaching out to industrialists and members of the business
community from Bengal and explaining and offering to them various unique features,
amenities, advantages that Andhra Pradesh offers to investors, especially in areas of
automobiles, textiles, garments, pharma, capital goods, food processing, technology,
MSME and start-ups," said Subramanyam.
Speaking to `exclusively, Subramanyam said, "The Andhra Pradesh government under
the stewardship of the Chief Minister Jagan Mohan Reddy, knows exactly where it hurts
the investors and therefore along with fiscal incentives, the state government hands over
pre-EC environment clearances through professionally-run AP Environment
Management Corporation. Besides, the state government has set up as many as 30 Skill
Colleges across the State to train and groom young talents with high-end industry-related
skills. Many companies often have this problem of finding and sourcing suitable and
employable candidates. These skill colleges would take care of that need by training and
up-skilling people with particular knowledge and skills required by a particular industry."
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Focusing on Industrial Clusters YSRCP govt attracted 65 large industries and 13,885
MSMEs involving Rs34,001-cr investment Created 1,33,565 jobs so far Rs36,384-
cr worth 62 projects in progress New units will generate 78,916 jobs
Home
Indian textiles sector attracts UAE investments
(Source: Trade Arabia, August 23, 2021)
The UAE is emerging as a growing investor in India’s textiles sector even as India steps
up its efforts to quadruple the exports of handloom textiles in the next three years,
according to a Wam report.
The Ministry of Textiles here today set up a high-level, eight-member, experts’ committee
to double the production of handlooms and boost exports. The committee has been tasked
with preparing a roadmap to achieve these targets, an announcement said.
Investments from the UAE in India’s textiles sector, a new area of entrepreneurial
interest, amounted to $23.09 million in the last five years and is growing, the Ministry
said in a statement on foreign direct investments, which covered the period up to 31st
March 2021, which marks the end of the financial year in India.
The UAE topped the chart of investors from the GCC in the textile sector with Oman and
Qatar in second and third places.
The high-level committee is headed by Sunil Sethi, Chairman, Fashion Design Council of
India. It has been asked to submit its report in 45 days.
Simultaneously, the government has released funds worth Indian rupees 1.25 billion ($16
million) for eight Centres of Excellences in textile research across India, the Ministry
announced.
In addition, 10 new Handloom Design Resource Centres are to be set up by the National
Institute of Fashion Technology (NIFT) "with the objective to build and create design-
oriented excellence in handlooms to facilitate exports," the Ministry’s statement said.
The NIFT’s 17 campuses across India have been serving as "knowledge service providers
in the area of design development and positioning of handlooms." These initiatives have
been occasioned by the National Handloom Day, which falls in August.
The Minster of State for Textiles, Darshana Jardosh, said on this occasion that
"handlooms are a symbol of India’s rich and varied cultural heritage." She said this sector
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15 CITI-NEWS LETTER
is also a vehicle for women’s empowerment since more than 70 per cent of all weavers
and allied workers in India are women.
Home
Lower costs, ink FTAs to push exports: CEO panel
(Source: Sidhartha, Times of India, August 24, 2021)
A committee comprising top Indian CEOs has argued that India’s proposed free trade
agreements (FTAs) could help push exports of auto components and textiles, while also
suggesting a sustained effort to reduce five disabilities for domestic companies — cost and
ease of doing business, market access via trade treaties, technology and quality issue and
supporting Brand India for manufacturing.
The Steering Committee for Advancing Local Value-Add and Exports (SCALE
committee), headed by former M&M MD Pawan Goenka — working on increasing exports
of 24 identified products — has said that the government needs to urgently address cost
issues related to land, power and capital, apart from addressing scale, which lowers cost
disabilities. Addressing concerns around infrastructure and logistics, labour flexibility
and strengthening MSMEs could also help in lowering costs for companies and make
them more competitive in global markets.
In a presentation made at a meeting between industry players and commerce minister
Piyush Goyal on Monday, it suggested a push to the “China plus one strategy” to attract
investment from multinationals, while positioning India as an export hub. The minister
agreed with several of the suggestions and listed out areas on which the government is
already working
With FTAs in place, the panel concluded that auto components could be the biggest gainer
across markets, including the US, UK and the EU.
Similarly, treaties with the UK, EU, Asean, South Asia and the US could benefit textiles.
While ACs and drones could gain in at least four markets each, products such as set-top
boxes and sports goods & gym equipment may not see much impact of the treaties. The
panel made a presentation to commerce and industry minister Piyush Goyal on Monday.
Home
IIT Delhi researchers develop modified cotton fabric which adsorbs air
pollutants
(Source: India tv News, August 23, 2021)
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16 CITI-NEWS LETTER
These fabrics could be easily regenerated by heating the fabrics at 120 degrees Celsius and
reused without any decrease in their adsorption capacity for several cycles, the team said.
Researchers at the Indian Institute of Technology (IIT) Delhi have developed a modified
cotton fabric capable of adsorbing harmful air pollutants.
ZIF-8@CM Cotton and ZIF-67@CM Cotton, as they are called, are Zeolite Imidazolate
Framework (ZIF)-modified functionalised fabrics which adsorb high levels of organic air
pollutants like benzene, aniline, and styrene from the ambient air.
According to the research team, air pollution resulting from the rising levels of particulate
matter, nitrous oxides, sulphur oxides, carbon oxides, and other toxic volatile organic
compounds (VOCs) is a major concern. Long-term exposure to even a few parts per
million of these chemicals takes a toll on health and can cause asthma, and eye and throat
irritations etc.
"In this study, we have shown the functionalisation of cotton fabric by ZIF MOFs (ZIF-8
and ZIF-67) using a rapid, facile, eco-friendly, and scalable approach. The ZIF
functionalised textiles possess a huge potential for applications as protective garments
and in controlling indoor air pollution. These fabrics may be used as upholstery for
controlling gaseous pollutants that cannot be filtered out using filter media.
"In particular, these can be used within closed spaces such as homes, offices, theatres,
aeroplanes and other transport vehicles," said Ashwini Agrawal of the Textile and Fibre
Engineering Department, IIT Delhi.
The ZIF-8 functionalised fabric was found to adsorb a maximum of 19.89 mg/g of aniline,
24.88 mg/g of benzene, and 11.16 mg/g of styrene on the weight of the fabric.
These fabrics could be easily regenerated by heating the fabrics at 120 degrees Celsius and
reused without any decrease in their adsorption capacity for several cycles, the team said.
Using a technique known as in-situ growth of ZIF-8 and ZIF-67 nanocrystals on the
carboxymethylated cotton fabric using a rapid water-based textile finishing approach, the
researchers at IIT Delhi have successfully developed a low-cost cotton fabric capable of
adsorbing 400-600 per cent more VOCs than ordinary cotton fabrics.
Further, these fabrics are robust and can withstand even the harsh conditions of washing.
They can be used repeatedly and in designing functional filters and pollution controlling
upholstery fabrics among others.
IIT Delhi research scholar Hardeep Singh, who carried out detailed experiments to
develop these fabrics, said the porous materials such as activated carbon, zeolites, and
Metal-Organic Frameworks (MOFs) are capable of adsorbing VOCs from the air.
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17 CITI-NEWS LETTER
"The MOFs can be tweaked to create textiles that have antimicrobial, biomedical,
particulate matter filtering, fuel filtering, chemical warfare protecting and UV radiation
absorbing properties. The ZIFs specifically are more suitable under Indian conditions,"
he said.
Home
Roots of economic recovery deepen in July as Covid restrictions ease: ICRA
(Source: Economic Times, August 21, 2021)
As the states started unlocking, the mobility for retail and recreation posted a sharp
improvement from around 60 per cent below baseline at end-May 2021 to 23 per cent below
baseline by end-July 2021
With the easing of COVID-19-related restrictions by the states, the roots of the economic
recovery deepened in July 2021, says a report. The unlocking in the country has
manifested itself in improving performance across various high frequency industrial and
service sector indicators, mobility and toll collections in July 2021, according to a report
by Icra Ratings.
"With the further easing of the state-wise restrictions, especially across the southern
states, the roots of the economic recovery deepened in July 2021. Despite a normalising
base, eight of the 15 high-frequency indicators recorded an encouraging improvement in
their year-on-year (YoY) growth in July 2021," the agency's chief economist Aditi Nayar
said in a report.
Moreover, 10 of the 13 non-financial indicators recorded a month-on-month (MoM)
uptick in July 2021, although the pace of the improvement expectedly eased from the
levels seen in June 2021, when the state-wise unlocking had commenced, she said.
The YoY performance of GST e-way bills, fuel consumption, electricity generation, output
of CoalIndia Limited ( NSE 0.63 % ), vehicle registrations, domestic passenger traffic, etc.
improved in July 2021 compared to June 2021. Moreover, the worsening in the YoY
performance of some of the remaining indicators such as the output of passenger vehicles
(PVs), scooters and motorcycles, was primarily due to the unfavourable base effect. The
report, however, said the sequential momentum of growth eased in July 2021, after
having recorded a sharp uptick in June 2021.
While 10 of the 13 non-financial indicators displayed an increase in month-on-month
terms in July 2021, the pace of the same trailed the surge in June 2021, for indicators such
as vehicle registrations, generation of GST e-way bills and auto output, it said. In contrast,
ports cargo traffic, diesel consumption and rail freight displayed a decline in MoM terms
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18 CITI-NEWS LETTER
in July 2021, it said. Nayar said the volumes of seven of the 13 non-financial indicators
(non-oil merchandise exports, GST e-way bills.
recovery-deepen-in-july-as-covid-restrictions-ease-icra/printarticle/… 2/2 electricity
generation, CIL's output, petrol consumption, PV output and rail freight traffic) rose
above both their preCovid as well as April 2021 levels in July 2021. "As the states started
unlocking, the mobility for retail and recreation posted a sharp improvement from around
60 per cent below baseline at end-May 2021 to 23 per cent below baseline by end-July
2021 (seven-day moving average)," she said. FASTag toll collections rose by 15.5 per cent
to Rs 2,980 crore in July 2021, while mildly trailing the record-high of Rs 3,090 crore in
March 2021, she added. The agency further said the early data for August 2021 indicates
a mixed trend across the available indicators. While petrol sales of state refiners in the
first half of August 2021 exceeded both the year-ago and pre-Covid levels, those for diesel
continued to trail their pre-Covid performance, it said. The daily average generation of
GST e-way bills remained flattish in the first half of August 2021, relative to July 2021.
The YoY rail freight growth stood at a healthy 14.1 per cent during August 1-10, 2021, the
agency added.
Home
Cottonseed firms face double whammy this kharif season
(Source: Vishwanath Kulkarni, The Hindu Businessline, August 23, 2021)
Dip in area, rise in use of illegal HTBt seeds hit sales of organised players
Hybrid cotton seed companies such as Rasi Seeds and Kaveri Seeds are facing a double
whammy this year. Not only has the offtake of their Bt cotton……….
Home
Cotton acreage to come down by 15%
(Source: K V Kurmanath, The Hindu Businessline, August 22, 2021)
Farmers shift to pulses, oilseeds
The cotton acreage in the country is likely to see a decline of about 15 per cent, with
farmers shifting to oilseeds and pulses cultivation in several parts of the country…………
Home
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19 CITI-NEWS LETTER
Grasim Industries Rating ‘add’; Ebitda was in line with estimate in Q1
(Source: Kotak Institutional Equities, Financial Express, August 24, 2021)
Standalone Ebitda for FY22/23e raised by 10/5% on stronger VSF margins; debt-free B/S
in offing; TP up to Rs 1675; ‘Add’ retained
Organic investments to reduce capital allocation concerns and holdco discount; maintain
ADD
Grasim’s Q1FY22 EBITDA came in line with our estimate with higher VSF prices
offsetting lower volumes. VSF business continues to benefit from strong demand led
higher prices whereas chemical margins have started recovering from record lows.
Grasim’s VSF and chemical division would see ~30% capacity expansion over the next 6-
12 months, which would drive volume growth. Standalone business is well poised to
become net debt free by FY2022e with divestment of the fertiliser business. We increase
our Fair Value to Rs 1,675 (from Rs 1,520) on roll over. Maintain Add.
Q1FY22—In-line Ebitda with higher prices offseting lower volumes
Grasim reported standalone revenues of Rs 37.6 bn (+94% y-o-y, -14% q-o-q), Ebitda of
Rs 7.4 bn (-611% y-o-y, -9% q-o-q) and net profit of Rs 4.5 bn (-311% y-o-y, -8% q-o-q),
against our estimates of Rs 43 bn,Rs 7.2 bn and Rs 3.5 bn, respectively.
VSF— Margins hit new highs but near peak: VSF volumes increased to 120 kt (+173% y-
o-y,-24% q-o-q) and Ebitda/ton to Rs 40,667/ton (+3% q-o-q) led by higher prices (+38%
y-o-y, +7% q-o-q), partly offset by higher costs (-12% y-o-y, +9% q-o-q). Higher exports
at 31% (11% in Q4FY21) aided volumes when domestic demand slumped due to Covid-19.
However, we see headwinds to margins with rising pulp costs and moderation in VSF
prices in China.
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20 CITI-NEWS LETTER
Chemicals— Ebitda improves on higher prices: Sales volumes declined to 238 kt (+173%
y-o-y, -24% q-o-q) impacted by weak demand due to Covid-19 related restrictions.
Ebitda/ton increased q-o-q at `11,555/ton (+289% y-o-y, +67% q-o-q) on higher caustic
soda prices. Caustic prices remain on an uptrend due to temporary supply outages.
Management expects prices to directionally move up with modest improvement in
demand. Capacity expansions and sale of non-core assets to strengthen balance sheet
Grasim’s expansion projects would complete in phases in FY2022-23e and drive volume
growth over the next two to three years. VSF capacity would increase by 31% and
chemicals by 27%. Divestment of its fertiliser business for `26 bn by Q2FY22e would
further help deleverage. We estimate standalone net cash of Rs 8 bn in FY2022e versus
net debt of Rs 8 bn in FY2021. Organic investments to reduce capital allocation concerns
and holdco discount; maintain ADD
Growing standalone business, debt free balance sheet and disciplined capital allocation
should contract holdco discount (spot at 55% versus 40-45% historically). We have
increased standalone Ebitda by 10%/5% for FY2022/23e on stronger VSF margins. We
revise Fair Value to Rs 1,675 (from Rs 1,520) on higher market value of subsidiaries and
roll over to September 2023e. Maintain Add.
Home
The magic of Baluchari weaves
(Source: Rajkumari Sharma Tankha, New Indian Express, August 24, 2021)
A show of 30 rare Baluchari saris harks back to scenes from the British Raj. It also pays
ode to textile art historian Jasleen Dhamija.
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21 CITI-NEWS LETTER
Women smoking hookahs, British officers on shikaar, Nawabs with their favourite birds,
and East India Company’s steam powered trains and boats... One can enjoy such nuggets
of history woven in bright mulberry silks that have come to be known as the famous
Baluchari saris. A show dedicated to this handicraft, The Woven Art of Baluchar, is on at
Art Konsult Gallery in Hauz Khas Village. On display are 30 pieces of “90-100-year-old
rare saris that are fragile, but admired for their beauty”, notes collector Siddhartha
Tagore, who procured them from various dealers and collectors in Kolkata and Delhi
The saris range between `2 lakh to `6 lakh, and were expensive even back then when the
art was thriving, says Siddhartha. Their motifs, he adds, were borrowed from the existing
socio-cultural situation, and the sheen comes from the use of indigenous mulberry silk,
not zari, as mistaken. Siddhartha was exposed to this art form when he was 4-5 years old,
courtesy his father, Subho, who had a large collection of Baluchari textiles. The love affair
grew stronger with time and he finally became a collector.
Siddhartha has dedicated The Woven Art... to textile art historian Jasleen Dhamija for her
contribution to the history of textiles and costumes. “She did a lot of pioneering research
on the handloom and handicraft industry, especially the history of textiles and costumes.
In the 1950s and 60s, Dhamija also worked on reviving the Baluchari sari in Varanasi
along with Kamla Devi Chattopadhyay,” he says. In the 1970s, Subho, who was the first
Director of the Regional Design Centre in Calcutta (now Kolkata) of the All India
Handicrafts Board, also tried to revive this intricate art. He helped develop the technique
of jacquard weaving, which simplified the process and reduced weaving time. This new
era of Baluchari weaving featured motifs from epics and religious texts (Vaishnava
imagery) that the weavers of Bishnupur replicate even today. This is in stark opposition
to the first era of Baluchari weaving wherein themes revolved around the lives of the
Nawabs and European officers of the East India Company.
“The style change does not leave the same visual impact that the 1920s Baluchari saris
had. Just as artists today cannot replicate the aura of Kalighat paintings of the 1900s.
Moreover, original mulberry silk is difficult to procure,” says Siddhartha, who plans to
hosts talks on Baluchari art after the show ends on September 18.
The beginnings
The Nawab of Bengal Murshid Quli Khan brought Baluchari art from Dhaka (Bangladesh)
to a small village named Baluchar on the banks of the river Bhagirathi in Murshidabad
(in West Bengal) some 200 years back. The art was patronised in Baluchar till the time a
flooding of the Bhagirathi River forced the trade to shift from Murshidabad to Bishnupur
(in the Bankura district of West Bengal) in the 19th century. There, the trade flourished
under the Malla Dynasty for some time until the British felt threatened by their inability
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22 CITI-NEWS LETTER
to replicate this artisanship in the mills of England and forced financial sanctions that
squeezed the poor weavers out of their craft and brought it to the verge of shutting down.
Home
How large is the Textile Bags industry, and how quickly is it expected to
grow?
(Source: Tmr research insights, August 23, 2021)
Global Textile Bags Market: Overview
The decline in usage of plastic-based products in the packaging industry is in turn
increasing demand for textile bags. Textile bags are made with different materials such as
cotton, and burlap fabric. For variety of applications where moisture is considered as a
critical factor for packaging, textile bags are used to provide sufficient dryness to the
product. Textile bags are used as an appropriate choice for packaging instead of plastic
bags. Thin walled plastic bags are considered as more harmful to the environment as
compared to thick walled plastic bags. The demand for textile bags is expected to boost in
the near future, due to inclination of consumer preference towards re-usable and
recyclable products. The retailers in India are preferring cotton based bags for their
products, owing to stringent regulations for plastic usage.
Global Textile Bags Market: Dynamics
Plastic bags usage is prohibited in some of the countries in Asia Pacific and Europe which
is reducing their consumption, and growing the demand for textile bags. To store grains
and pulses, jute bags are used, owing to the cost-effectiveness of the textile bags. The ban
on plastic in some of regions is expected to boost the textile bags market growth in the
upcoming years. The increasing number of grocery stores, special retailers, and online
retailers is creating the demand for textile bags globally. The significant change in
manufacturer’s preferences towards paper based products may affect the growth of textile
bags negatively. The use of bio-degradable polypropylene woven bags and paper bags may
hamper the growth of textile bags in the competitive scenario. The leading players in the
bag packaging industry are looking forward to offer cost-effective solutions. Brand
owners, retailers and food service companies are customizing their own cotton and other
cloth based bags for branding and marketing purposes, which is expected to boost the
textile bags market demand in the upcoming years.
Global Textile Bags Market: Segmentation
On the basis of size, the global textile bags market has been segmented as
• Less than 14″ x 26″
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23 CITI-NEWS LETTER
• 18″ x 30″
• 22″ x 36″
• 22″ x 40″
• Above 28″ x 40″
On the basis of material type, the global textile bags market has been segmented as
• Cotton
• Burlap
• Others
On the basis of sales channel, the global textile bags market has been segmented as
• Retailers
• Hypermarkets
• Supermarkets
• Factory Outlets
• Special Retailers
• Wholesalers
• E-commerce
Global Textile Bags Market: Key Players
• Hubco, Inc.
• Columbia Packaging Group
• Frontier Bag Company
• ACE Packaging
• JohnPac, LLC
Some of the Manufacturers in the industry are providing sustainable packaging solutions
which is increasing the demand for textile bags in near future. The textile bags in different
material and different sizes are available in the market. Leading players in the industry
are offering customized solutions to enhance the production capabilities in terms of
production.
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24 CITI-NEWS LETTER
Global Textile Bags Market: Regional Outlook
Austrian federal government is seeking a complete ban on non-biodegradable plastic bag
from January 1, 2010 on. On March 21, 2017, the Estonian Parliament adopted the act on
amendments to the Packaging Act which will restrict the use of plastic bags, starting from
2019. Textile bags market is estimated to witness significant growth in the Europe region,
owing to the increment in government legislations on the plastic products. The change in
consumer preferences in the Asia Pacific region with respect to plastic based products
which includes plastic bags, straws, cups and other food service containers is expected to
expand footprint of textile bags market in the region. China & India, listed on top among
all the emerging countries is expected to witness high growth in the textile bags market.
Manufacturers in the textile bags market are seeking opportunities in the South Africa
and North African countries to expand their business operations. Mexico is anticipated to
have high growth rate in the textile bags market, owing to increasing consumer demands
in the country.
This study by TMR is all-encompassing framework of the dynamics of the market. It
mainly comprises critical assessment of consumers’ or customers’ journeys, current and
emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed
visualization of four elements:
• Customer Experience Maps
• Insights and Tools based on data-driven research
• Actionable Results to meet all the business priorities
• Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues,
factors shaping their revenue potential, and demand and consumption patterns in the
global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
• North America
• Asia Pacific
• Europe
• Latin America
• The Middle East and Africa
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25 CITI-NEWS LETTER
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven
research and advisory for CXOs to help them make better decisions for their businesses
and stay as leaders.
Home
Sewing tradition into wedding finery
(Source: Prerna Gauba, Hindustan Times, August 23, 2021)
Hand embroidered, rich and extravagant, couturier Manish Malhotra sews his couture-
like creations with emotions. As he captures culture in pieces that blur the line between
modern and traditional with his India Couture Week collection.
Couturier Manish Malhotra opened the India Couture Week 2021 organized by the
Fashion Design Council of India association with Hindustan Times, tonight with his
signature magnificence, setting the tone for the entire collection. He amalgamated the
emotions of a modern bride with traditional weaves and textiles. The collection titled,
Nooraniyat, was not just about extravagant ensembles but deep-rooted emotions of a
bride – the one who is shy, or happy or undergoing a sea of emotions. Talking about the
film, designer Manish Malhotra confesses his love for film making and capturing
emotions. “I closely work with brides and for this collection inadvertently got drawn into
those intriguing memories and decided to capture it all - from their enthusiasm and joy
to the heartfelt and compassionate, there’s a myriad of emotions and sentiments that are
so heart-warming yet unsettling moments before she turns the page onto her new
chapter,” says Malhotra who completes 31 years in the fashion industry this year.
The collection is fun, flirty, cheeky, decadent and rich. Breaking all stereotypes we saw
brides of all shapes, sizes and age – a young girl with her mother dressed as a bride, to the
dancing bride, – there was inclusivity and diversity. One can also see exquisite
craftsmanship- rich gotta patti to elaborate embroideries, age-old zardosi, badla, carefully
crafted on all ensembles. As traditional as it is with red being the dominant colour and
brides dressed with veils, the collection still resonates with the modern bride of today
Home
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26 CITI-NEWS LETTER
GLOBAL
Bangladesh: End of yarn price chaos signals cooperation among apparel,
textile sectors
(Source: Dhaka Tribune, August 23, 2021)
Textile millers and apparel manufacturers fixed yarn prices on Saturday night, lowering
prices slightly
The amicable end of the chaotic situation created by the frequent rise of yarn prices
signals the beginning of much-needed cooperation among the country's apparel and
textile sectors, according to industry insiders.
Textile and apparel are
complementary industries, so
any chaos between them will
tarnish the image of the
country in front of buyers, who
might then take undue
advantage of the situation, they
added.
Earlier, on Saturday night, the
textile millers and apparel
manufacturers fixed the yarn
prices, bringing down the price
of yarn slightly.
According to the newly fixed price, the ceiling of 30s carded yarn has been set at $4.20
per kg, while that of 30s combed yarn has been set at $4.50 per kg.
However, both parties will sit again to fix the prices if cotton price surpasses $1 per pound
in the international market (Cotton Index 100) and it will be kept the same if the price
remains at 85 to 100 cents (Cotton Index 85-100) per pound.
The price will be reduced through a meeting if the cotton price falls below 85 cents.
Currently, the price of cotton in the international market is fluctuating between 93 to 96
cents per pound.
The decision was taken on Saturday at a meeting of top leaders of Bangladesh Garment
Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear
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27 CITI-NEWS LETTER
Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills
Association (BTMA).
BGMEA President Faruque Hassan told Dhaka Tribune that they had reached an
agreement by fixing the yarn price in discussion with the textile millers on Saturday night.
“We have fixed the price of yarn at $4.20 per kg if the cotton price remains under $1 per
pound in the international market, but if it surpasses $1 per pound, we will sit again to fix
the new price limit,” he added.
The BGMEA president also said that this will bring a positive sign for both apparel and
textile industries of the country and that the decision was needed to keep the country's
market stable.
Mohammad Ali Khokon, president of the BTMA, said: “We agreed to set a price ceiling as
apparel and terry towel manufacturers were demanding lowering the prices. We will be
able to supply the yarn at these fixed prices.”
Faruque Hassan also said that local procurement of yarn from the domestic market has
given some advantages to the manufacturers.
However, unusual hikes may force them to find alternative markets, he added.
According to the industry insiders, 70-80% of the demand for yarn are met by local
spinners.
Bangladesh imports 20-30% of yarn from India, Pakistan, Indonesia, and Turkey and
most of them are specialized varieties.
Rising yarn prices for several months had created a chaotic situation for textile millers
and apparel exporters.
Apparel and terry towel exporters alleged that the spinning millers unfairly and
abnormally increased yarn prices which put the exporters in a difficult situation for the
last seven to eight months.
However, textile millers denied the allegation and claimed that they are not hiking prices
intentionally.
On August 10, the ongoing chaos over high yarn prices between textile millers and apparel
exporters was settled amicably, with no price hike planned.
The decision was taken at a joint meeting of the BGMEA, BKMEA, BTTLMEA, and the
BTMA.
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28 CITI-NEWS LETTER
But after only a few days of the meeting, on August 14, the country's apparel
manufacturers sent a letter to Commerce Minister Tipu Munshi asking him to allow
partial shipment in all the land ports of the country for importing raw materials needed
by the sector.
They also demanded to relax the conditions of importing yarn, cotton, fabrics and other
raw materials through these land ports.
But textile millers expressed worries over the new proposal.
Home
How Lenzing is promoting transparency within the fashion industry's supply
chains
(Source: Fashion United, August 23, 2021)
The need to implement sustainable processes within the fashion supply chain has never
been greater. With growing awareness from the fashion industry about the environmental
and social impact of the textile sector, the focus on adopting innovative solutions
continues to gain momentum. Sustainability is now a key business imperative in supply
chain management for many fashion brands and retailers, despite the economic
challenges brought on by the pandemic. With more fashion companies encouraged to
create more sustainable supply chains, leading fiber manufacturer Lenzing aims to
support their transition.
Placing sustainability at the core of its company values, the global company seeks to
support industry stakeholders and fashion players pursue more circular and transparent
business operations through its products and partnerships. To learn more about how
Lenzing strives to bring around positive change within the fashion industry and help
stakeholders adopt sustainable practices within their own supply chains, we spoke with
Peter Bartsch, Vice President of Corporate Sustainability at Lenzing.
Q: Why is working and promoting transparency so important to Lenzing?
A: "When you work in such a large company like Lenzing, not everyone is aware of all the
moving pieces. Working transparently is a great way to identify gaps and see where we
have room for improvement. This is not always clearly visible, so increasing transparency
helps us to pinpoint where we can enact change. Transparency in the workplace also
promotes diverse thinking across different areas to push our company forward and helps
us better assess potential risks and mitigate them, which is very important.
At the same time, we have to deal with stakeholder and customer needs. Brands and
retailers have clear expectations regarding raw materials and their performance, while
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29 CITI-NEWS LETTER
NGOs hold us to their standards to continue our partnerships. From these expectations,
many stakeholder initiatives have been formed. External investors and legislations like
the EU Green Deal also require complete transparency from companies, especially when
it comes to the environment. They want to know our environmental and social impact, as
investors must assess their financing in terms of ESG indicators. We want to show
stakeholders that when they invest in Lenzing, there is no risk involved and they are
working towards the greater good."
Q: How is Lenzing partnering with other industry players to bring around
sustainable systemic change?
A: "We first identify our key goals and areas where we need to take immediate action,
such as enabling circular economy and tackling climate change. These are issues with lots
of uncertainty about the best course of action and are too big to handle alone. It is
important to work with other stakeholders and organisations to overcome these hurdles,
as together we have more power to develop solutions.
We regularly engage with leading multi-stakeholder initiatives and industry partners like
the Sustainable Apparel Coalition, as well as academics, brands, retailers, and NGOs to
develop tools and methodologies which are able to assess different products and
processes. We cannot bring around large scale change alone, so we work with partners
throughout our entire supply chain. Together, we aim to develop the best tools possible
to improve our operations and implement them accordingly. We also collaborate with
brands to drive sustainable innovation in product development, like using our TENCEL™
branded fibers with REFIBRA™ technology to produce garments. Our partnerships are
centered around open communication and mutual support.
We take on a cross-industry view as many of these issues overlap with other sectors, which
provides opportunities to exchange knowledge and resources. These discussions should
not be viewed on a competitive level, as we are overcoming shared challenges together."
Q: How does Lenzing support industry stakeholders to pursue more
transparent and circular business models?
A: "We drive this through our own engagement with industry stakeholders and partners,
supporting them through projects in accordance with our circular business approach. We
work closely with partners to help develop the tools needed, from track and trace to new
resources and logistical processes, so that they can monitor their products at every stage
of the value chain. Last year, in cooperation with TextileGenesis™, we introduced a digital
platform for textile supply chain traceability enabled by blockchain technology. The
platform provides customers, partners, and consumers with an overview of the entire
textile value chain. It’s clear supply chain traceability has now become a top priority for
apparel and home. We hope they look to us as a role model for positive change and join
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us in motivating other players in the textile industry to embrace more sustainable ways of
working. In addition, we strive to promote the conservation and restoration of resources.
This is something we do through our TENCEL™ and VEOCEL™ branded offerings. We
want to provide our partners with peace of mind that they will receive the branded fibers
they have consciously chosen and ordered. For example, our fiber identification
technology ensures traceability of our TENCEL™ branded fiber. For brands which use
TENCEL™ fiber in their products, this can provide them with the credibility to
communicate sustainability efforts, combat greenwashing and upgrade their own brand’s
sustainability credentials. Fiber identification will become a part of the fabric certification
process within our Lenzing E-Branding Service enabling producers, retailers, and brand
owners, to easily track their fibers throughout the production process. This allows
customers to differentiate between brands using ethically sourced materials and make an
informed decision."
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Spinnova deal with The North Face
(Source: Innovation in Textiles, August 23, 2021)
Partners will develop circular solutions for outdoor apparel.
The North Face is the latest brand to sign a development agreement with Spinnova to
develop sustainable, high-performance textiles for the outdoor apparel industry.
Spinnova’s 100% circular fibre, created from wood and waste without the use of harmful
chemicals, will be supplied to global textile brands in 2022. In May this year, Woodspin
– the partnership between Spinnova and the world’s largest wood pulp producer Suzano
– selected a site and started the construction of the first commercial plant for this new
fibre in Jyväskylä, Finland. Woodspin’s goal is to be producing one million tons of it
annually within ten years. “We have created a modular and flexible technology that is easy
to scale and set up around the world, according to the pace of demand,” said Spinnova
CEO and co-founder Janne Poranen. “This is a great opportunity for us to continue
pushing the limits of our material.”
“It’s our over-arching goal to build more circular products, constantly develop innovative
materials and further reduce the environmental impacts of our products, and Spinnova is
the ideal partner on that journey,” added Oliver Lang, global VP of product development
for The North Face.
Home
Why is used clothing popular across Africa?
(Source: Ippmedia, August 23, 2021)
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31 CITI-NEWS LETTER
Many people in Africa buy second-hand clothes sent from Europe and the US. But East
African countries could ban imports of used clothes and second-hand cars, putting an end
to a lucrative trade in the region.
Burundi, Kenya, Rwanda, Tanzania, and Uganda could all ban second-hand clothes and
leather, among the countries which make up the East Africa Community (EAC). The EAC
directed member countries to buy their textiles and shoes from within the region with a
view to phasing out imports. In 2019 the EAC also proposed a reduction in imports of
used cars. The EAC suggested phasing out imports. However, that it depends on the heads
of state all agreeing to a common industrialisation policy. The proposal suggests a ban
would only come in after an increase in local textile production. The idea is to give a boost
to local manufacturing, and help the economy. One argument is that the imported clothes
are so cheap that the local textiles factories and selfemployed tailors can't compete, so
they either close down or don't do as well as they could. A release from a previous EAC
manufacturing and business summit says (http://www.eac.int/news-and-media/press-
releases/20150902/1st-manufacturingbusiness-summit-held-speke-resort-munyonyo-
kampala-uganda) the leather and textile industries are "crucial for employment creation,
poverty reduction and advancement in technological capability" in the region. Across the
African continent second-hand clothes from developed countries are a mainstay of many
informal traders, dominating local market stalls. East African Community (EAC)
proposed ban aims is to encourage local production and development within member
countries: Burundi, Kenya, Rwanda, Tanzania and Uganda alone imported $151m
(http://comtrade.un.org/data/) of second-hand clothing in 2018, most of which
(https://www.bbc.co.uk/news/magazine30227025) was collected by charities and
recyclers in Europe and North America. In the 1970s, East Africa’s clothing
manufacturing sector employed hundreds of thousands of people, but when the debt crisis
hit local economies in the 1980s and 1990s, local manufacturing struggled to compete
with international competition and factories were forced to close. Today, the small sector
remaining is geared towards production for exports. People in countries like the UK
donate used clothes to charity. A research conducted recently in Britain explains that
demand for the clothes sold in charity shops is low compared to supply. More than 70 per
cent of all UK reused clothing goes overseas, where they are sold. People believe that their
clothes will be given to those in need or sold in high street charity shops to raise funds
and don't realise that their donations will be traded abroad for profit. Second-hand
underwear has been called unhygienic. The EAC urged governments to make sure that
used-clothes imports complied with sanitary standards urging East African governments
to make sure that used-clothes imports complied with sanitary standards. Used knickers
were banned in Ghana in 2011 (https://www.bbc.co.uk/news/world-africa-11845851)
and a Ugandan bill also proposed (http://www.monitor.co.ug/News/National/Civil-
society-petition-MPs-toban-second-hand-underwear-imports/-/688334/2839310/-
/i5yqiu/-/index.html) a ban in the country last year. Second-hand cars have also been
blamed for causing accidents. In Uganda, second-hand garments account for 81 per cent
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32 CITI-NEWS LETTER
of all clothing purchases. According to UN figures (http://comtrade.un.org/) from 2013,
South Korea and Canada combined exported $59m worth of used clothes to Tanzania
while the UK alone exported $42m worth of used clothes to Kenya. In 2013 Tanzania
banned import and sale of second-hand inner wear (under pants), called ‘mitumba’
locally, citing concern about people’s health and the necessity to protect the environment.
In a statement, the Tanzania Bureau of Standards (TBS) said it has noted with concern
that innerwear is sold in various parts of the country contrary to TZS 758:2003
requirements on compulsory standards for inspection and acceptance criteria for used
textile products.There are 48 major importers of second-hand garments in Tanzania, who
then distribute the same to retailers, according to the Ministry of Industry and Trade.
Home
Nepal's trade body wants to raise exports to $7 bn by 2025
(Source: Fibre2 Fashion, August 23, 2021)
Nepal’s Federation of Export Entrepreneurs plans to expand exports to up to $7 billion
by 2025. In the next three years, the federation aims to raise export volume to $2 billion.
In a recent virtual meeting on export promotion, the federation told representative of
diplomatic missions of 40 nations that it wants to raise export to make the country
prosperous. It requested the diplomatic missions to provide details regarding the need for
goods in their countries and furnish recommendations to the federation, according to
media reports in the country.
The dialogue with diplomatic missions was initiated to reduce Nepal’s trade deficit by
boosting agricultural and industrial productions and exports. Export of energy is also a
priority. Currently, Nepal is exporting more than 950 goods to more than 120 countries.
Carpet, readymade garments, pashmina, phelt are some of the top export items. India is
the largest export market for Nepali products followed by the United States.
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