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The United States has challenged India’s export subsidy programs. This has to be seen in the light of the US’ vocal opposition to the 50 per cent duty on Harley Davidson bikes levied by India.
Under WTO rules, countries with a per capita income of less than 1,000 dollars can provide export subsidies for particular sectors only until their share of exports is below 3.25 per cent of global trade. Once a country’s exports crossed this threshold and remained above it for two consecutive years, subsidies for that particular sector would have to be phased out over eight years, even if the per capita GNI of the country is below the 1,000 dollar threshold.
India’s textile exports crossed this 3.25 per cent threshold in 2010 and export subsidies will have to end this year. But the textile sector is hardly ready for a life without such schemes. It has lost the wage arbitrage advantage to countries like Bangladesh, Vietnam, Myanmar and Laos.
Withdrawing export subsidies will be politically difficult for the government in an election year and considering the fact that the exports sector as a whole is going through a difficult time. But one thing is clear: India will have to drastically change the way it helps its exporters.
India aims at doubling the annual revenue of the textile industry in the country by 2025. The country’s textile industry currently generates about 150 billion dollars in annual revenues — 110 billion from the domestic market and 40 billion through exports.
To achieve the target, production of synthetic clothes will have to be increased manifold.While the annual production of cotton textiles is pegged at 6.5 billion kgs, about 2.5 billion kgs of synthetic textiles are made.
About 2.5 lakh new jobs were created in the garments and made-ups sector since June 2016. Garment makers were able to get benefits to the tune of Rs 55 lakhs for every crore in new investments committed under the package. The capital subsidy under the amended technology upgradation fund scheme was increased to 25 per cent from 15 per cent. A new scheme was introduced to refund state levies which were not refunded earlier. The move cost the exchequer Rs 5,500 crores but it helped in boosting the competitiveness of Indian textile exports in foreign markets. Overtime hours were increased from three hours to eight hours a week. EPF was made optional for workers earning less than Rs 15,000 a month.
The readymade garment industry is the largest contributor to the country’s textile exports and employs about 12 million persons now.
Gartex which is India’s leading trade show completely dedicated to garment and textile manufacturing solutions and technologies will showcase the biggest and most comprehensive trade show. With the immense success of last two editions, MEX Exhibitions is back with its third edition of Gartex, arranged from 18-20 August 2018. More than 150 companies will display around 300 brands related to the theme at Pragati Maidan in a larger scale over 10,00,000 sq. ft. of exhibit area.
India’s most comprehensive trade show Gartex 2018 is India’s fastest growing and one-of-its-kind exhibitions on garments and textile machinery, fabrics, accessories and allied industries.
Gartex 2018 decided to expand the size for the show this year, facilitating a further bigger floor space to accommodate around double the number of exhibitors with an enhanced area for displaying a complete value-chain of garment and textile manufacturing solutions. This year edition will offer a lot of opportunities to manufacturers as well as buyers to get updated on new trends and business opportunities on a bigger scale.
Gartex is a great platform to highlight your product range to key decision makers. Broad exhibit categories include embroidery machines, cutting and sewing machines, fabrics and accessories, needles and threads, laundry and washing equipment, finishing equipment, laser cutting machines, digital textile printing machines, automation and software’s.
The targeted visitors include garment exporters, garment manufacturers, fashion designers, apparel industry professionals, home textile players, textile printing companies, sports & apparel manufacturers and buying houses.
Textile Forum was held in the UK, March 14 to 15. This is a fashion fabric trade show. Exhibitors and buyers sought to tap into a flourishing high-end textile scene and an increasing appetite for newness.
More than 100 collections were on show at the exhibition, which attracted top companies and high-quality designers. This was up from 70 at the October edition.
There was an uptick in visitors compared with previous editions. While some bemoaned the dominance of students, dressmakers, designers, buyers and manufacturers from small businesses and start-ups dominated the mix, which suited the ambitions of the brands.
There was an overwhelming London-based attendance. International visitors were almost non-existent. UK manufacturers met and networked with others in their sector.
Intricate lace and floral embroidery were the standout approaches from the event, while shimmering materials and delicate detailing also found a place on many stands. Stripes were also reported to be popular with buyers – a move away from the current catwalk infatuation with plaid and checked styles.
Lots of UK designers were looking for small minimums. This gives designers more flexibility, so they don’t end up with too much fabric.
Future editions of the show will increase the focus on ethical and sustainable fabrics.
In a move to improve the livelihoods of garment workers and help improve supply chain transparency and efficiency, Gap has started a bold new goal for all of its tier 1 suppliers approximately 800 factories in about 30 countries to make the transition from a cash-based system to digital payments by 2020.
More than 60 percent of Gap’s supplier factories already provide digital payments methods, such as online transfers to bank accounts or mobile wallets. The new goal will help scale this progress across the company’s global supply chain and positively impact the lives of more than one million garment workers.
According to the company, women make up about 80 percent of the world’s garment industry workforce but often live in a cash-only environment and lack access to formal financial services. Electronic wage payment methods have the benefit of drawing previously unbanked workers into the formal financial system, allowing women greater control over their finances and a safer way to save, send money, and invest. Suppliers benefit from increased efficiency and speed. All parties also benefit from increased accountability, transparency, and security.
The company’s focus on promoting an inclusive digital payment ecosystem is the latest move by Gap to partner with suppliers to improve the livelihoods of the garment workers who make its clothing. The company’s Supplier Sustainability team continues to move beyond an “assess and remediate” model to a more innovative approach – with more cooperative, productive, and positive working environments as the end goal.
Gap is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands.
Euratex has launched a new strategic course to strengthen the voice of the European textile and apparel industry.
This will better reflect its members’ objectives and priorities which in addition to trade and industry policies encompass policy areas such as sustainability, innovation and skills.
Euratex is the European Apparel and Textile Confederation. It interacts with European policy institutions in Brussels as well as governmental bodies and partner organizations around the globe.
Over the last ten years the European textile and clothing industry, representing an annual turnover of over 171 billion euros, some 1,78,000 companies and 1.7 million workers, has been able to modernize and reinvent itself into a forward-looking, innovative and export-oriented sector.
Euratex’s member companies which are overwhelmingly small and medium-sized enterprises cover a broad industry cross-section in terms of product, market segment and geographical spread.
The EU-27 is the largest world market for textile and clothing products. Further, it is the second world exporter in textiles as well as in clothing.
The board of directors of Euratex has decided to undertake a comprehensive strategy review. This process will be concluded at the end of 2018 and will be led by three newly appointed policy directors, Isabelle Weiler (Trade and Industry), Lutz Walter (Innovation and Skills) and Mauro Scalia (Sustainable Businesses).
The proposed merger of Bayer and Monsanto may benefit India. China and Brazil have given the go-ahead, the European Union appears to be moving towards a favorable opinion.
It will encourage greater entrepreneurial energy in the area of crop protection, development of new traits and greater productivity in farming, place a premium on the increasing role of technology and innovation, and make farming in India globally competitive and a profitable economic activity.
The claim that royalty fees on cotton seeds have led to farmer suicides is irrational: thanks to pest-resistant strains of cotton, Indian farmers took to the crop in large numbers and India became the top exporter of cotton.
Agronomic practices play a decisive role in a crop’s profitability. Gujarat farmers thrived on irrigated land, while Maharashtra farmers sowing the same seed in rain-fed areas struggled.
Farmers must be helped to adapt to higher levels of technology. India is on the threshold of an agro-processing revolution: once stable power supply in rural areas moves from rhetoric to reality, it would push up demand for farm produce on an unprecedented scale. India needs new farm knowhow to be available, not aborted.
Strong players need competitors with size and scale to challenge them. India also needs the startup ecosystem to move into crop sciences.
Shenzhen International Underwear Fair (SIUF) will be held in China, April 19 to 21.
The show will have a continuous focus on offering the whole supply and distribution chain of the intimate apparel industry in terms of brands, fabrics, accessories, manufacturing, and solutions for intimate apparel. Visitors will explore trends and trades. International manufacturers, retailers and designers will present their underwear and lingerie products to trade visitors.
As Asia’s most influential underwear trade fair, SIUF will set benchmarks for branding and sourcing of the intimate apparel industry. The event will again prove to be a premier platform for the entire supply chain of the lingerie business.
SIUF is organised by Tarsus. Based in the UK, Tarsus is an international business-to-business media group with interests in exhibitions, conferences, education, publishing, and online media. With a strong foothold as the owners of a portfolio of world-class products in the emerging markets of China, the Middle East, Turkey, India, Southeast Asia and Mexico, in addition to the US, Tarsus is well-positioned to leverage these assets as a platform for growth.
The 2017 edition saw a tremendous success with 825 exhibitors from over 25 countries and regions, including Mainland China, Hong Kong, Taiwan, Japan, Indonesia, Germany, France, Italy, Israel, and Columbia.
Power loom weavers in Gujarat, specifically Surat, want a textile promotion scheme similar to that launched by Maharashtra.
They have asked for an impetus package, lowered electricity tariffs and modernized weaving units. Otherwise, they say, entrepreneurs from Surat will be encouraged to set up units in Maharashtra as the fabric manufactured there will be 40 per cent cheaper than in Surat.
In Maharashtra textile units have been given an impetus package to the tune of Rs 4,600 crores. Electricity tariff has been reduced by Rs 2 per unit. There is a 25 per cent capital subsidy and there is no cap on investment made in the textile sector.
All this has made production costs of units in Maharashtra 40 per cent lower compared to costs in Surat.
GST and demonetisation dealt a blow to the power loom sector in Surat, the country’s largest man-made fabric hub. The withdrawal of high-value banknotes put sudden brakes on the disposable income of consumers. Many power loom weavers shut down their units and more than a lakh conventional power loom machines were sold in scrap.
Where a year ago Surat produced 40 million meters of polyester a day, the figure now stands at only 25 million meters.
China Interdyre 2018, a UFI approved event is the largest specialized exhibition in dye-chemical industry in the World.
The 18th China International Dye Industry, Pigments and Textile Chemicals Exhibition (China Interdye) and China International Digital Textile Printing, Printing and Dyeing Automatics Exhibition (China Textile Printing), is scheduled to take place from April 11 to 13, 2018 at the Shanghai World Expo Exhibition and Convention Center. It will exhibit different kinds of dyestuffs, textile chemicals, intermediates, pretreating auxiliary, dye fixing agent, dispersant agent, softening agent, leveling agent, penetrating agent, stabilizing agent, thickening agent, adhesives, different kinds of pigments and related products, new technology, new equipment, new materials used in the textile and chemical industries etc.
There will be technical seminars and activities, covering a 360 overview of the significance of technology in the production of dyestuff and intermediates. Experts will also discuss their research works and enlighten all on the latest trends on forbidden textile chemicals.
Both the exhibitions, one with a focus on Science and Technological Innovation and the other on Green Development, will be hosted by China Dyestuff Industry Association.
