The Tirupur Exporters Association (TEA) has suggested the textile mills to protect the knitwear garment export segment and Raja M Shanmugham, TEA's President even met Smriti Irani, the Union Textiles Minister, in this regard. He requested the minister to mandate that the Cotton Corporation of India make sure that there's sufficient quantity along with the desired quality to protect the farmers' interests, the interest of the textile industry as well s to generate employment. He mentioned that as the cotton prices are rising, textile mills too have increased yarn prices. This will also affect downstream value-added segments such as knitting, garmenting, weaving, and made-ups. It would particularly impact value-added exporters as they were unable to increase the price that was fixed upon almost five months ago.
In a release, the President stated that the stressed knitwear export sector was undergoing a challenging business environment due to the implementation of GST. This is turn has led to a continuous decline of knitwear exports since October 2017 on a monthly basis, which is after completing a three-month transition period. He further stated that for the second half yearly period of 2017-18, the decline in exports was 21 per cent. The negative trend in exports growth was continuing in the current fiscal as well and the average of knitwear exports in April and May was 34 per cent. Further adding he said that the sector was now looking up and ahead and booking orders bringing it up from a one-year calm and the rise in yarn prices now would derail the sector. This would, in time have a boomerang effect on textile mills as well.
Directa Plus Plc is to add its graphene enhancement G+ to the range of jeans made by Arvind, one of India's top textile groups. Arvind makes six million pairs of jeans every year using 100mln metres of fabric for household name brands such as Levi's, Tommy Hilfiger, Wrangler, and Gant and has established a reputation for innovation.
G+ will be infused into the denim fabric to give the denim effects such as 'thermal regulation, heat dissipation, energy harvesting, data transmission and no odour'. “Technology plays a vital yet invisible hand in determining the performance, fashion quotient, and functionality of the denims we develop. The use of graphene in denims is absolutely new and will yield some of the smartest, most widely used fabrics in the years ahead,” said Aamir Akhtar, CEO – Denims, Arvind Ltd.
After making an entry into the Indian market, Swedish retailer, H&M set to increase its sourcing of garments from India, stated Janne Einola, Country Manager of the brand. The brand has been sourcing textiles from the country for almost three decades for its global clientele.
Einola said that India was always a strong supplier for linen, lingerie, home textiles, wovens, and accessories and the brand is looking at ways to improve sourcing from the country now.
Right now, the brand is assessing how to source garments and Einola stated that they also looking at introducing H&M Home and Cosmetics in India. The brand has promised an investment of INR 720 crore in the Indian market, stated Einola and added that India is an emerging market where people are still learning how to shop.
Mr Cho reached an agreement with Mr Modi in Mumbai to establish a spandex plant in Maharashtra by 2019. It will lay the foundation for making inroads into the domestic market of the country.
Mr Cho selected India and Vietnam as strategic bases for '100-year Hyosung'. He is planning to foster Hyosung Vietnam as the global outpost for manufacturing core products such as spandex and tire cords, bound for the European and Asian markets, and make Hyosung India as an advance guard for penetrating into the Indian market through ongoing addition and expansion.
“Hyosung started its first business foray in New Delhi in 2007 and has been operating a trading company in New Delhi since 2012. Throughout we have been expanding our business. For example, we erected the extra-high-voltage circuit breaker plant in Pune in 2016 and our annual sales eventually exceeded $300 million,” Mr Cho said to the Prime Minister.
The Directorate General of Foreign Trade, under the Ministry of Commerce and Industry, of Government of India, has extended the incentive at 4 per cent under the Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20), beyond June 30, 2018.
The MEIS incentive under Foreign Trade Policy of India was valid from November 1, 2017 to June 30, 2018, as per earlier Public Notices issued by the DGFT.
“It is a major relief when the exporting units are struggling to sustain after the reduction of duty drawback and RoSL. The export orders were usually taken six months ago, so if MEIS was not continued at 4 per cent, exporters would have faced losses,” said Tirupur Exporters Association President, Raja M Shanmugham.
Maharashtra will give spinning and textile mills subsidies to set up solar power plants. Details of the proposed subsidy, the criteria to declare units eligible for subsidy and a plan for implementation, are being worked out.
The committee will be headed by the Textile Director and will comprise of the Director General of the Maharashtra Energy Development Agency and an official from the Maharashtra State Electricity Distribution Company Ltd., said an official, adding that it has been asked to submit a report in two months.
In the new textile policy 2018-23, approved in February, the department has decided to give power subsidy of INR 3 per unit to cooperative spinning mills for three years. Subsidy has also been given to other textile projects. Within this period of three years, the cooperative spinning mills and textile projects are expected to set up non-conventional power projects in their premises to fulfil their power needs.
Public sector undertakings (PSUs), all ministries and departments have been asked to buy fabric and textiles they need, locally by the textile ministry. This would help the country's artisans by boosting their earnings.
Under the 'Make in India' scheme, last month, the textile ministry asked all ministries to give 'purchase preference' to local content by the textile ministry. This is similar to the decree that all government officials should take the state-owned Air India for official trips. The aim of the 'Make in India' programme is to help the manufacturing sector to grow and hence create jobs. Though it faced some hiccups in the earlier years, it is expected to gain momentum in the future.About 2 per cent of the country's GDP consists of the textile sector while it is 15 per cent in export earnings.
The textile sector of the country fetched almost up INR 27,000 crore in investments, stated Union Minister Smriti Irani, recently. This investment was after the incentive package was announced and the sector would most probably be getting more investment from the domestic and international markets in the future as well.
A special package of INR 6,000 crore was announced by the government for the textile and apparel segment in 2017 by the government that comprised of numerous production and tax incentives. The Union Minister, while addressing the textile summit, Texellence 2018, organised by industry body CII said that after the knowledge of this investment, the ministry were hopeful about more investments from the international and domestic markets, provided the government intervenes.
Truetzschler India has opened a training academy at its state-of-the-art manufacturing plant in Ahmedabad. The inaugural training session at the academy was held from April 9-to 21, 2018. Truetzschler is a textile machinery manufacturer that specialises in installations and accessories for spinning preparation, nonwovens, and man-made fibre.
Efficient operation and maintenance of world-class machines needs thorough training. One of the most effective methods of receiving such training is by demonstration on the same kinds of machines one is to operate and maintain. This academy has the latest card TC 10 equipped with the new can changer T Move, and the draw-frame TD 8, so as to provide hands-on training to participants on the latest machines.
The government's announcement of hike in customs duties for some apparel products has been welcomed by Indian manufacturers of apparels. The announcement made on 7th August 2018, which states that the customs duties for a large number of apparels and carpets products has doubled, said Mr Rahul Mehta, President, The Clothing Manufacturers Association of India (CMAI). The Hon'ble Minister of Textiles, Smt Smriti Irani was thanked by Mr Mehta, for accepting the industry's recommendations, which would bring relief to the domestic apparel industry, encourage domestic manufacturing and boost job creation as well.
The government recently hiked the customs duties on 328 textile products to 20 per cent in a move to promote domestic manufacturing under the 'Make in India' initiative. Hence, imported innerwear pyjamas, track suits, baby garments, and swimwear would now cost more. Basic customs duties have also been increased on woollens, shawls carpets, textile floorings, dressing gowns, druggets, ensemble of silk and artificial fibre. Besides boosting the domestic apparels manufacturing, this move will also help create jobs in this segment that has around 10.5 crore employees currently. Recently, India quietly raised import duty on over 50 textile products; however, this move is much greater than that. Also, India's apprehension is quite genuine as it fears that blocked by Americans, China may usurp India's market with cheap products, which would in turn destroy the country's domestic market.
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