Welspun India is one of the world’s biggest home textiles companies. Around, 94 per cent of Welspun’s capacity is exported and the other six per cent is for the domestic market. But by 2020, this six per cent is expected to go up to 20 per cent. Besides the domestic retail market, hospitality is a major thrust area globally. The US is Welspun’s biggest customer.

The company is now turning its focus to the domestic market to achieve higher growth. Welspun’s brand Spaces caters to the middle class and the upper segment. The plan is to roll out a mass brand in the market. This brand will be launched in Tier II and Tier III cities by March.

After five years, India will possibly be Welspun’s prime market. The company is growing at 25 to 30 per cent year on year. After the introduction offlooring products next year, Welspun expects a boost in its revenue. The flooring units in Telangana will be commissioned next year. The company is investing around Rs 1100 crores to create an annual capacity of 27 lakh sq mt. By 2022 the company hopes to be debt-free while achieving revenues of two billion dollars.

Japanese firms are scaling up investment in Vietnam’s textile and garment sector. Japan’s Matsuoka Corporation was the first to set foot in Vietnam in 2014. It mainly produces apparel items for Uniqlo to be exported back to Japan. The company has chosen Vietnam for capital injection and production expansion in recent years to take advantage of the opportunities anticipated to be brought by new-generation free trade agreements such as the EVFTA and the CPTPP.

With its first plant becoming operational in 2016, the second plant began production last August, with an annual capacity of about two million products. The company has further invested in an apparel plant complex with an annual production capacity of seven million products. By the end of this year, the complex is expected to create jobs for more than 2,500 local laborers.

With around 30 plants in operation, Sakai Amiori, another Japanese company, has opened an export apparel production plant. The plant finished construction in April 2017 and now sees stable production and exports. The influx of foreign direct investment continuing to flow into export-oriented sectors like textiles and clothing has the dual benefits of helping to boost the sector’s capacity and turning Vietnam into a global manufacturing base.

The United States and China have suspended their trade dispute for now. The dispute rattled financial markets and threatened world economic growth. The US will put on hold plans to raise tariffs on Chinese goods. China has agreed to buy a substantial amount of agricultural, energy, industrial and other products from the United States to reduce America's huge trade deficit with China. In another concession to the US, China has agreed to label fentanyl, the deadly synthetic opioid responsible for tens of thousands of American drug deaths annually, as a controlled substance.

The two sides appear to have had a major change of heart to move away from confrontation toward engagement. This changes the tone and direction of the bilateral conversation. The two countries have been locked in a dispute over their trade imbalance and China’s tech policies. The US accuses China of deploying predatory tactics in its tech drive, including stealing trade secrets and forcing American firms to hand over technology in exchange for access to the Chinese market.

The truce buys time for the two countries to work out their differences. Under the agreement reached, the two countries have 90 days to resolve their differences. If they can't, the US tariff increases will go into effect.

The US-China trade war could mean trouble for Vietnam. China might seek to dump its goods on Vietnam to avoid US tariffs. And cheaper Chinese goods competing with Vietnamese goods will not benefit Vietnam’s economy.

To protect domestic companies import taxes may be necessary. No licenses should be issued if there is no guarantee that more than two thirds of the production chain would be in Vietnam. And Vietnam would have to promote free trade agreements with Europe and others to reduce its dependence on the US and China.

The trade war has already hit investors’ confidence causing them to pull out of emerging markets including Vietnam. The global supply chain is badly disrupted as a result, and the investment environment has become uncertain. The trade war brings both opportunities and challenges for Vietnam, but it is up to companies to identify the opportunities.

Since it is known which goods face sanctions, businesses should research about customers for those goods and offer them a better deal. The US-China trade war escalated in September with the US levying an additional ten per cent tariff on Chinese products. The US is set to raise the tariffs to 25 per cent in January if there is no agreement between the both sides.

The Indian textile industry is looking to complete its transition in the wake of demonetisation and GST. Internal factors are improving, even as external factors are in favor of India. China is retreating from a large part of the textile value chain and that is expected to favor India.

On export front too, things are turning around. Exports of textile and apparel grew 38 per cent during October 2018 as compared to October 2017. Over the same period apparel exports grew at a whopping 54 per cent. Textile and apparel production registered a growth of 5.4 per cent and 20.9 per cent respectively during September 2018.

Continuous growth in exports would boost employment, scale up production and most importantly the Make in India initiative will be a reality for the textile and clothing industry. The big issue is of imports from Bangladesh. With full exemption from basic customs duty Bangladesh is a gateway for Chinese fabrics entering India duty-free. This is because no rules of origin are in place for duty-free imports from Bangladesh.

Import duty has been increased on several textile and apparel items. The move follows an unprecedented rise in imports in the last few months, even as exports of textiles and garments have grown very marginally.

In its 10th year, Performance Days, the Munich trade fair for functional fabrics was held from November 28 to 9, 2018 at Messe München. The fair, featuring over 296 exhibitors, focused on sustainability and lifestyle. Exhibitors presented numerous innovations in the field of sustainability.

Primaloft introduced its new PrimaLoft Bio Insulation, the first synthetic insulation made entirely of recycled and biodegradable fibers. In a landfill, the fiber decomposes almost entirely after just over a year. Conventional polyester fibers take many decades to break down.

Polartec, one of the largest fleece producers in the world, launched Polartec Power Air, a fabric that releases less microplastic due to five times less fiber loss. Polartec Power Air is not, as usual, a high-pile, roughened knit construction with exposed fibers, but a completely new, double-sided knit construction that encloses loose, warming fibers in pockets.

Denim specialist Isko, which presented the B2B platform Arquas, also focused on sustainability in addition to the latest denim technology for performance and outdoor products. The brand has received a Life Cycle Assessment (LCA) for all of its more than 25,000 denim products.

This edition of Performance Days was particularly dedicated to the subject of water with numerous lectures on this topic offered on both days.

Texfair will be held in Coimbatore from August 9 to 12, 2019. This is a fair for textile machinery, spares and accessories. Manufacturers and suppliers of textile machinery and spares of ginning, spinning, weaving, processing, powerlooms, handlooms, knitting and garmenting will participate. Energy saving equipments, electrical and electronic items, sizing materials, dyes and chemicals and packaging materials will also be on display.

The fair provides a platform for stakeholders to zero in on their investments and expenses prudently, showcase their inventions and cost effective items and other products, enable technocrats and shop floor technicians to update their knowledge on the latest technology and create an awareness on cost cutting, encourage micro, small and medium entrepreneurs to showcase their products and get exposure to the market.

Hosting the event in August 2019 enables suppliers and users to plan their investments and renew their business. Texfair is organized by the Southern India Mills Association (SIMA), representing the organised textile industry in South India. SIMA has so far successfully conducted eleven such exhibitions since 2001. Response to the fair is getting better every fair. Coimbatore is the hub for the textile business in India and the fair would be an ideal platform to showcase and market the products.

The spring edition of Premium Textile Japan will be held on May 21 to 22, 2019. This is a premium textile salon which provides authentic brands and products, a platform where top domestic and overseas buyers and suppliers converge. The fair has been widely acclaimed by buyers. Most visitors comprise apparel designers and managing directors who are decision-makers for fabric procurement, making the fair a real business-oriented negotiation salon. A productive and in-depth business related program coordinated by the organiser also adds to the appeal of this key event.

The fair attracts textile buyers of high-end brands, not only from the domestic markets, but also those from overseas, such as China. The total number of visitors recorded at Premium Textile Japan held in May 2018 was 5,987, an impressive 83 per cent were buyers, including numerous key fashion industry players. Moreover, over 150 overseas buyers from 19 countries and regions also visited the show, further enhancing its global recognition. The value of Japanese apparel imports fell 7.97 per cent in May 2018 as compared to April 2018. The value of knitted apparel imports and woven clothing imports too plummeted in May as compared to April. The fall was mainly due to the declining value of the yen.

The Everything-but-arms (EBA) agreement has helped increase Cambodia’s exports to EU, accounting to about 46 percent of its total exports, compared to 25 per cent of its exports to the US. The country benefited from zero tariffs, which made it more competitive and also from the EU’s reform of the procedures of the rules of origin which facilitated its industries. Before 2011, Cambodia imported fabrics from China or other countries and tailored them in the country. But these could not be exported to the EU under the strict rules of origin. However, after 2011 the EU rewrote its rules of origin, allowing fabrics from anywhere to enter the country to be used in the local factories exporting to the EU. The change in the rules of origin facilitated the strong growth of our exports to EU.

China has not accepted India’s proposal to carry out bilateral trade in local currencies. India had suggested to China trade in local currency in order to boost its exports and tackle the widening trade deficit.

India’s exports to China stood at only $13.4 billion while imports were $76.4 billion in 2018, leaving a trade deficit of $63 billion. It was $51.11 billion in 2017. India has proposed trade in national currencies with some other countries, too, including Russia, Iran and Venezuela. New Delhi has a trade deficit with these three countries too.

Bilateral trade in domestic currencies will help India only in the case of those countries with which it has a trade balance. There should be no trade imbalance with the country with which India wants to do trade in the rupee. It will not help in bridging the deficit.

Indian industry and exporters have time and again raised the issue of increasing trade deficit with China and have sought greater market access for domestic goods in the Chinese market. Recently, China permitted exports of rice and sugar. But India wants to increase exports of several other items, including pharmaceuticals, engineering and services.