01 Febuary 2022, Mumbai:

As Indian textile exporters lose market share to Bangladesh and Vietnam, the Confederation of Indian Industry believes India may gain 1% of China's market share and gain access to $10 billion in textile commerce.

According to a recent research by the CII and management consulting firm Kearney, since China's cost competitiveness in the world textile industry has diminished, there is a potential for Indian enterprises to acquire market share. 

According to the paper, India's textile sector should strive for $65 billion in exports over the next five years and overcome present barriers to growth, such as high import levies on textile machinery and raw materials.

Over the following five years, the government wants to accomplish a goal of $100 billion in textile exports.

From April to December 2021, India's overall textile exports climbed by 41% year on year, owing in part to less pandemic regulations, according to ET Bureau. Despite recent development, the CII claims that the country still has a long way to go before it can enhance its competitiveness.

According to the Economic Times, Kearney partner Neelesh Hundekari noted, "The largest potential or market is in exports." "At least a $16 billion growth potential exists in the garment industry, and China Plus One is the ideal feeling."

Every garment sourcing firm wishes to have an alternative to China. Another area where we expect to see a $4 billion increase is in textiles, where we plan to establish India as a regional fabric center.

CREDITS: Fashion Network

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01 February 2022, Mumbai:

In order to stimulate apparel exports, the Apparel Export Promotion Council has asked the government to eliminate import duties on cotton in the 2019 Union budget. In an interview with Asian News International, AEPC chairman Narendra Goenka said, "We need to abolish the import tariff on raw cotton."

"Raw material prices in India are really expensive, thus it's our main requirement." Cotton prices have risen by over 70% to 80% in recent year. The reduction of the 11 percent import charge on cotton might be one answer. In order for mills to be able to import cotton at a lesser cost."

"Cotton and yarn costs have increased by 70-80%, posing a challenge for garment exports," Goenka added. "So it is our budget's key one-point need."

The AEPC has also emphasized the need of expanding India's manufacturing capacity, signing free trade agreements with other nations, and promoting Indian clothing internationally through export promotion campaigns. Because these commodities are normally shipped out of India, the AEPC also advised that the government give duty-free facilities for importing trims and decorations. 

"Until two years ago, trimmings and decorations such as tags, labels, and buttons that are used for branding and are nominated by the customers were permitted duty-free," Goenka explained. "That facility was withdrawn, and we are demanding that it be reinstated since we need to import those trimmings from purchasers' designated sources."

The AEPC was founded in 1978 and is India's official organization for clothing exporters. According to its website, the AEPC has ten offices across India and conducts training programmes for the garment sector.

CREDITS: Fashion Network

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28 January 2022, Mumbai:

Future Group plans to sell à 25% in Its general Insurance joint Venture Future Generali India Insurance Co Ltd to its Italian partner Generall Group for 1,252 crores, the company saidd on Thursday.

"Future Enterprise progresses on its plan to monetize its Investment in its insurance joint ventures with Generalli,agrees to sell 25% equity in the Generalli insurance JV,".

Future Enterprise is scheduled to pay around 2200 crore in debt instalment in March as a part of one time restructuring (OTR) of its Ioans with the lenders and the sell-off is part of the Indian group's plans to raise money to clear its dues to the bank, a person familiar with the devolpment said.
CREDITS: ET dt 28-01-2022

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02 February 2022, Mumbai:

India’s imports of Supima cotton from the United States increased last year to 219,360 lakh bales from 1.74,822 bales in 2020, owing largely to leading US brands shifting their garment sourcing to India from China.

Bruce Atherley, Executive Director, Cotton Council International (CCI) believes, brands are becoming more responsible in their sourcing strategies as sustainability and transparency are no longer optional. Leading brands are mapping their supply chains all the way back to spinning mills and looking for reliable supply chain partners.

Peush Narang, CCI Country Representative-India and Sri Lanka, adds, the Indian textile industry is at a critical juncture thanks to its growing cotton imports.

India's textile exports have been brisk as a result of rising demand and government support. Between April and December 2021, India’s textile and apparel exports increased by 41 per cent to $29.8 billion, up from $21.2 billion in the same period last year.

From April-December, India’s textile sector's exports, including textile, apparel, and handicraft, increased by 15 per cent year on year. Exports of cotton yarn, fabrics, made-ups, and handloom products increased by 43 per cent year on year during the period, while jute product exports increased by 33 per cent.

In December, India’s textile exports increased by a record 37 per cent year on year to $37 billion, the highest-ever monthly exports achieved so far. In the same period last year, exports totaled more than $27 billion.

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01 February 2022, Mumbai:

Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next Keycap digit five years, said finance minister Nirmala Sitharaman.

Union finance minister Nirmala Sitharaman presented the Union Budget 2022 today. This is her fourth budget presentation.

“Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next Keycap digit five years," said Nirmala Sitharaman.

CREDITS: news18.com moneycontrol.com

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28 January 2022, Mumbai:

The Centre estimates cotton production in 2021-22 at 36.25 million bales, while traders said it was around 33-34 million bales.

In a recent meeting with Union Finance Minister Nirmala Sitharaman this Thursday unequivocally all 'Textile Industry Stakeholders', appealed & exhorted for removing import duty on all varieties of cotton or least expected on extra-long staple (ELS) cotton to mitigate the elevated prices, and outlined the issue of suspected unscrupulous hoarding by certain cotton players. 

Credits: Business Standard

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01 February 2022, Mumbai:

The Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2021-22 in Parliament today. The highlights of the Economic Survey are as follows:

State of the Economy:

• Indian economy estimated to grow by 9.2 percent in real terms in 2021-22 (as per first advanced estimates) subsequent to a contraction of 7.3 percent in 2020-21. 
• GDP projected to grow by 8- 8.5 percent in real terms in 2022-23.  
• The year ahead poised for a pickup in private sector investment with the financial system in good position to provide support for economy’s revival. 
• Projection comparable with World Bank and Asian Development Bank’s latest forecasts of real GDP growth of 8.7 percent and 7.5 percent respectively for 2022-23.
• As per IMF’s latest World Economic Outlook projections, India’s real GDP projected to grow at 9 percent in 2021-22 and 2022-23 and at 7.1 percent in 2023-2024, which would make India the fastest growing major economy in the world for all 3years.
• Agriculture and allied sectors expected to grow by 3.9 percent; industry by 11.8 percent and services sector by 8.2 percent in 2021-22.
• On demand side, consumption estimated to grow by 7.0 percent, Gross Fixed Capital Formation (GFCF) by 15 percent, exports by 16.5 percent and imports by 29.4 percent in 2021-22.
• Macroeconomic stability indicators suggest that the Indian Economy is well placed to take on the challenges of 2022-23.
• Combination of high foreign exchange reserves, sustained foreign direct investment, and rising export earnings will provide adequate buffer against possible global liquidity tapering in 2022-23.
• Economic impact of “second wave” was much smaller than that during the full lockdown phase in 2020-21, though health impact was more severe.
• Government of India’s unique response comprised of safety-nets to cushion the impact on vulnerable sections of society and the business sector, significant increase in capital expenditure to spur growth and supply side reforms for a sustained long-term expansion.
• Government’s flexible and multi-layered response is partly based on an “Agile” framework that uses feedback-loops, and the use of eighty High Frequency Indicators (HFIs) in an environment of extreme uncertainty.

Fiscal Developments:

• The revenue receipts from the Central Government (April to November, 2021) have gone up by 67.2 percent (YoY) as against an expected growth of 9.6 percent in the 2021-22 Budget Estimates (over 2020-21 Provisional Actuals).
• Gross Tax Revenue registers a growth of over 50 percent during April to November, 2021 in YoY terms.  This performance is strong compared to pre-pandemic levels of 2019-2020 also. 
• During April-November 2021, Capex has grown by 13.5 percent (YoY) with focus on infrastructure-intensive sectors.
• Sustained revenue collection and a targeted expenditure policy has contained the fiscal deficit for April to November, 2021 at 46.2 percent of BE.
• With the enhanced borrowings on account of COVID-19, the Central Government debt has gone up from 49.1 percent of GDP in 2019-20 to 59.3 percent of GDP in 2020-21, but is expected to follow a declining trajectory with the recovery of the economy. 

CREDITS: PIB

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31 January 2022, Mumbai:

The textiles industry has been struggling to stay afloat in the midst of a raging pandemic that caused acute labour shortages and a surge in cotton prices. If these weren't enough, smaller nations such as Vietnam and Bangladesh are now overtaking India in this segment.

Though there has been a 41% increase in textile exports from April-December 2021 against last year, a lot remains to be done to help the sector be more competitive and on a par with global challengers.

A report by the Confederation of Indian Industry (CII) and global management consulting firm Kearney released in October last year had stated that India’s textile industry should aim for $65 billion in exports in the next five years, especially with the “China Plus One” sentiments lending India a favourable position — as global companies look at sourcing and manufacturing destinations outside the “factory of the world”, China.

Affirming such views, KK Lalpuria, Executive Director & CEO, Indo Count Industries, says a clear opportunity exists for India as textile brands and retailers are trying to de-risk their supply chain by looking at alternative hubs.

“China’s cost competitiveness is waning. Their market share is still 30%-36% and even a 1% market share shift will imply a $10-billion market, because the global textiles trade is $1 trillion.

So that is the kind of scale that India is looking at,” he says. India’s domestic textile and apparel production is worth $140 billion, including $40 billion of textiles and apparel export, according to the Press Information Bureau.

The government has set an export target of $100 billion over the next five years, from $34 billion (2019-20), according to the commerce ministry. Experts have pointed out that India, being a leading textile player, has the opportunity to massively scale up its presence in this segment.

CREDITS:ET

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28 January 2022, Mumbai:

The company had posted a net profit of Rs 22.44 crore during the October-December period of the previous fiscal, Arvind said in a regulatory filing.

Leading textile manufacturer Arvind Ltd on Thursday reported an over four-fold increase in consolidated net profit at Rs 94.34 crore for the third quarter ended December 2021, led by volume growth across segments.

The company had posted a net profit of Rs 22.44 crore during the October-December period of the previous fiscal, Arvind said in a regulatory filing.

 

Revenue from operations was at Rs 2,275.66, up 50.39 per cent from Rs 1,513.16 crore in the year-ago quarter.

Total expenses climbed 45.25 per cent to Rs 2,146.60 crore, as against Rs 1,477.84 crore earlier.

"Volumes grew across all textile segments as post-Covid demand stayed strong in both export and domestic markets.

Cotton prices rose sharply, and other input costs continued to stay high, but were mostly offset by improved price realisation and higher efficiencies,” Arvind Ltd said in a post-earnings statement.

Revenue from textiles increased 57.34 per cent to Rs 1,918.13 crore, compared to Rs 1,219.11 crore.

On the outlook, the company said: "We expect Q4 to deliver strong results similar to the 3rd quarter.”

**The statistics mentioned in the above articles have been sourced from The Economic Times. 

CREDITS: Money Control  ET

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