Bangladesh’s earnings from readymade garment exports grew 11.49 per cent over the last fiscal year. Earnings from knitwear exports were 11.19 per cent higher than the last fiscal year. Earnings from woven items registered a 11.79 per cent growth. The country’s overall merchandise export earnings registered a 10.55 per cent growth.

Apparel exports were helped by safety and compliance upgradation in the apparel industry, helping to boost buyers’ confidence on sourcing more clothing from the country, the US-China trade war, and good performance of apparel exports in non-traditional markets. In particular the US-China tariff war opened an opportunity for Bangladesh as global buyers shifted orders from China to Bangladesh to remain on the safe side. The sector also went on a massive machinery upgradation scheme to ensure product quality and to produce value added goods. Bangladesh’s readymade garment sector contributes 84 per cent to the country’s total export receipts. The US economy was better than it was last year, which also helped the country to export more. However, most apparel export earnings of Bangladesh are from basic goods. To get a better price, the country needs to invest in technology for value addition. Also manufacturers have to establish links with buyers who are shifting from China to other countries.

"Finance Minister Nirmala Sitharaman presented her maiden budget in Modi 2.0 government. However, the textiles sector seems to have been low on her priority list as the Budget allocation for textiles has been reduced to Rs 5831.48 crore in fiscal 2019-20 from Rs 6,943.26 in the last fiscal. Total textile infrastructure like SITP has been reduced from Rs 3729.83 crores to Rs 58.55 crores. What’s more there has been a reduction in custom duty from 5 per cent to 2.5 per cent on import of raw materials under 5101 and 5105 (wool fibre and wool tops)."

Finance Minister Nirmala Sitharaman presented her maiden budget in Modi 2.0 government. However, the textiles sector seems to have been low on her priority list as the Budget allocation for textiles has been reduced to Rs 5831.48 crore in fiscal 2019-20 from Rs 6,943.26 in the last fiscal. Total textile infrastructure like SITP has been reduced from Rs 3729.83 crores to Rs 58.55 crores. What’s more there has been a reduction in custom duty from 5 per cent to 2.5 per cent on import of raw materials under 5101 and 5105 (wool fibre and wool tops). Moreover there has been an increase in customs duty from 0 to 20 per cent for water blocking tapes for manufacture of optical fiber cables. Reacting to the budget Sanjay Jain, Chairman, CITI says, “It’s neutral and a non event.”

Relaxation of FDI in single brand retail

The FM has proposed further relaxation of foreign direct investment (FDI) norms in single brand retail sector to attract more overseas investments. This assumes special significance as several foreign entities had raised concerns over the mandatory local sourcing norms from India. This included the high-end technology companies who had expressed their reluctance to procure goods from India due to the difficulty in meeting the 30 per cent condition.

The Department of Promotion of Industry and Internal trade had mooted a proposal earlier this year to ease these norms. According to that proposal, these relaxations would allow retailers more time to comply with this regulation. The proposal also sought permissions for such firms to start their online operations even before setting up brick-and-mortar shops, provided they are able to attract over $1million of FDI. However, the proposal also mandated these firms to set up their brick-and-mortar shops within two years of starting their online sales.

Tarun Pathak, Research Director at Hong Kong based Counterpoint Research feels easing rules in single brand retail is likely to help many foreign companies to expand their operations by setting their own stores in the country.

Focus on promoting Khadi globally

The government has also focused on promoting Khadi globally, urging its missions abroad to come up with ideas to project Khadi as an employment generation solution and not merely a garment.

The Budget also announced a 2 per cent interest subvention for MSME and corporate tax reduction to MSMEs upto Rs 400 crores. Labour laws have been simplified and restructuring of power distribution has been proposed. Also the formation of National Research Foundation has been announced in the Budget.

As a part of the NDA government’s focus on bringing micro, small and medium enterprises (MSMEs) under the formal economy’s fold, a payment platform for the MSMEs will be set up. This comes in the backdrop of the government’s plan to start an e-commerce platform on the lines of Amazon and Alibaba to sell products from MSMEs and the Khadi and Village Industries Commission.

Given its focus on MSMEs, the government has also announced a pension scheme for 30 million small traders, recognising the plight of shopkeepers, small traders and the self-employed hurt by the November 2016 decision to demonetize high-value currency notes, and the much-debated roll-out of the goods and services tax (GST) in July 2017. All small shopkeepers and self-employed persons as well as the retail traders with GST turnover below Rs1.5 crore and age between 18-40 years, can enrol for this scheme. The scheme would benefit more than 3 crore small shopkeepers and traders.

Reacting to the Budget the Clothing Manufacturers Association of India (CMAI) stated it is a mixed bag for the textile and apparel industry. Rahul Mehta, President, CMAI, stated that the extension of lower rate of 25 per cent corporate tax with an annual turnover up to Rs 400 crores is a welcome step. Currently, this rate is only applicable to companies having annual turnover up to Rs 250 crore. Moreover the infusion of Rs 70,000 crore capital into public sector banks will ease the current credit squeeze. Also, Rs 350 crore allocated for 2 per cent interest subvention for all GST-registered MSMEs on fresh or incremental loans will give a big thrust to MSMEs. Considering that over 80 per cent of the domestic apparel industry is in the MSME sector, all these measures could provide a boost to the sector.

The 63rd India International Garment Fair [IIGF] was inaugurated by Shantmanu, IAS, Development Commissioner [Handicrafts] that is being held concurrently with 12th edition of Indian Fashion Jewellery & Accessories show (IFJAS) at India Exposition Mart in Greater Noida.

The three day international fair,being held from July 04-06, 2019, covers the Spring/Summer collections of Japan, European Union, USA, and other western markets. This grand fair aims to provide a perfect business platform for the Indian apparel exporters and international buyers and bring together the best sourcing solutions from India.

Shantmanu, Development Commissioner [Handicrafts] says, "IIGF is a window for Indian exporters to the emerging markets in Asia, Latin America, Africa and East European countries. Government pays high emphasis on export promotion of apparels and a number of new schemes are also proposed for the current year. The northern and tribal region should be focused in future shows.

Sundeep Chugh, CEO & MD, Benetton India alongwith Indian comedian, singer, songwriter and YouTube sensation Bhuvan Bam unveiled the July 2019 of the popular music magazine-Rolling Stone India. The cover of the magazine features Bam on the cover in a complete Benetton look from the brand’s eclectic Spring Summer 2019 collection.

Comsat is equipping its latest Tecmat sectional warping machine for weaving preparation with the new EltexEyETM yarn tension monitoring system.

Unlike yarn tension monitors that are fitted solely on the weft insertion systems of weaving machines, the new Eltex technology is for the warping process prior to weaving – and instead of monitoring only the tension of the six-to-eight yarns fed by the weft insertion system the EltexEyETM keeps a close eye on literally hundreds.

With warping that can operate at high speeds, the yarn tension values from all yarns are continuously updated and displayed on the screen. Tension values outside the warning level are indicated both on the sensor’s LEDs and on the screen. This greatly increases yarn evenness and subsequently the woven fabric quality. In addition to being fitted on our latest Tecmat machine, the EltexEyETM can also be retrofitted to existing comsat machines already in operation.

The Hong Kong Research Institute of Textiles and Apparel (HKRITA) and the International Iberian Nanotechnology Laboratory (INL) signed an MoU to foster research development and knowledge exchange.

The MoU aims to strengthen collaboration between HKRITA and INL in the development of sensor and wearable technology. These research areas have inspired projects that are developing more precise ways to measure physiological and biomechanical phenomena, leading to the design of new devices and testing methods for the continuous enhancement of wearable solutions. The solutions will play increasingly important roles in improving life in a range of social and occupational settings.

Established in 2006, HKRITA is funded by the Innovation and Technology Commission of the HKSAR Government and hosted by The Hong Kong Polytechnic University. HKRITA engages in applied research to support the textile and apparel industry in order to boost its overall competitiveness, and to drive sustainable improvements and bring benefits to society. By providing one-stop services for applied research, technology transfer and commercialisation, HKRITA makes sustained efforts to promote successful projects for industry application.

The INL was founded by the governments of Portugal and Spain under an international legal framework to perform interdisciplinary research and to deploy and articulate nanotechnology for the benefit of society. The INL provides a cutting-edge research environment in which today’s major societal challenges can be addressed: ageing populations and well-being, mobility and urban living, and social safety and security.

The Vietnam Chamber of Commerce and Industry recently collaborated with the Chinese National Federation of Industries to organise the Vietnam-Taiwan Industrial Collaboration Forum. The event will connect leading enterprises in the fields of textile, light industry, automation, smart city and other applications. At present, the most intimate textile exchange and trade is happening between Taiwan and Vietnam. In future, the two parties will exchange newest international fashion trend, of which, Taiwan will introduce the highest quality nano-fabric researched and developed by Taiwanese firms to Vietnam, promoting the cooperation between two sides to come into reality.

Vietnam is the largest importer of Taiwanese-made fabric while Taiwan is the second largest territory in importing garment products of Vietnam with import turnover at nearly $400 million last year. As the price of Taiwan’s functional fabrics is higher than that imported from China, so export value of products made of Taiwanese functional fabrics will increase, helping Vietnam to hold a key position in global supply chain.

The business of wholesalers and retailers associated with textile processing mills has come to a standstill after the government introduced a sales tax of 17 and 20 per cent on the textile sector. APTPMA Chairman Mohammad Arif Lakhani held an emergency meeting which unanimously passed a resolution demanding an extension for sales tax implementation on CNIC basis besides continuing SRO1125 and zero rating till July 31, 2019. The association also asked the government to find a solution for sales tax issue by July 31 after holding negotiations with dyeing and weaving sectors along with textile retailers and wholesalers.

APTPMA former president Zubair Motiwala said imposition of 17 per cent and 20 per cent sales tax along will decline exports by 30 per cent. The Lahore Chamber of Commerce and Industry (LCCI) also warned the government that trading activities will come to a halt if the condition of disclosing CNIC details of sales to unregistered persons is not delayed for at least one year.

Under an amendment introduced by the government in the Sales Tax Act, sellers are required to include the buyer’s CNIC number on the sales tax invoices. However, the business community believes that this condition would result in a potential misuse of CNICs and can be used in fraudulent transactions of billions of rupees as reported from time to time.

DuPont Biomaterials’ Sorona fiber has unique stretch applications. Garments today no longer need spandex for athletic movement. Sorona fibers are a replacement for spandex (or elastane), achieving long-lasting, mechanical stretch and recovery with a better-for-the-planet profile. Sorona fibers are bio-based, use lower dying temperatures and are recyclable unlike bamboo or rayon. Sorona can be used as a standalone elastane alternative – one that does not breakdown over time with heat, washing, UV rays, or chlorine exposure and is recyclable in any normal polyester recycling stream. With mechanical stretch and recyclability at its core, the Sorona brand is offering innovative solutions to this industry-wide challenge. Whether incorporated into yoga tights or a luxury gown, Sorona fiber’s versatility and mechanical, long-lasting stretch make it an excellent replacement for spandex.

Companies which are into knit fabrics, denim fabrics or woven fabrics utilise textured yarns to provide the fabrics optimal stretch performance. These fibers are 37 per cent bio-based and can be used in a variety of applications, including seamless knitted T-shirts and other apparel as well as knitted footwear. Australian brand Think Love Live’s Serotonin shorts and Endorphin tights are made from 70 per cent lyocell and 30 per cent Sorona fibers for optimal comfort and stretch.

Pakistan is attracting Chinese investment in the textile sector. This includes the whole value chain of textiles, from cotton to garments. The Chinese are already cooperating in manufacturing of polyester yarn in Pakistan.

For instance Chinese private textile company Challenge Apparels will establish a state-of-the-art garment manufacturing facility in Pakistan. The aim is to enhance Pakistan’s exports and help generate thousands of new jobs in the country over the next couple of years. Challenge Apparels is among the leading exporters to top brands around the world, especially in developed countries.

Pakistan is facilitating investors through various reforms and hopes to benefit from the US-China trade war. If businessmen from China bring fabrics to Pakistan for making the finished products, and export those to the US, then they will not only able to maintain their client base but Pakistan will also benefit. Enabling Chinese textile exports this way will give a boost to Pakistan’s exports and deal with the balance of payments situation. When Chinese businessmen carry out their exports jointly with Pakistan, making use of the raw materials as well as Pakistan’s human resources, it will add to the earnings of Pakistan. Also China is helping Pakistan's spinning mills become more cost efficient and competitive.