FW
Indian products to gain from US hike on China's imports
As per latest CII reports, the additional 25 per cent duties levied by the US on imports worth $34 billion from China, would make certain Indian products more competitive. According to an analysis by the industry chamber, India should now focus on the US market for items like machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products.
Top exports from India to the US covered in the list of items for which tariffs have been hiked include pumps, parts of military aircraft, parts for electro-diagnostic apparatus, passenger vehicles of 1500-3000 cc, valve bodies and parts of taps. The exports of these items stood at over $50 million in 2017 and can be increased with concerted efforts. Based on India's current exports to the US in these categories, products such as intermediate parts for the defence and aerospace sector, vehicles and auto parts, engineering goods, etc, have a higher potential for export. Countries such as Vietnam, Indonesia, Thailand and Malaysia have also increased their exports of these products to the US in recent years.
Quality upholstery exhibits lined up for Intertextile Shanghai Home Textiles
Intertextile Shanghai Home Textiles will be held from August 27 to 30. With growing demand for textile solutions for architecture, interior design and the hotel industry, the fair will feature a showcase area displaying quality contract upholstery. The area will be decorated by interior designers, demonstrating the functionalities of different contract textile products.
To introduce the opportunities that the textile industry can capture from contract business, both domestic and international architects, hoteliers, interior designers and industry experts have been invited to share their insights about design, market, materials and project management.
An advanced digital printing system will be introduced. The system streamlines the entire production process by combining printing and drying together, hence, multiple machineries are not needed. It is also eco-friendly as one single ink set suits various types of fabric and designs will be printed in shapes and sizes that are ready for cutting. Visitors can learn more about the complete production process from printing and cutting to sewing via the onsite demonstration.
In addition to forums discussing how digital printing helps flexible production, there will also be an array of forums where some top domestic industry players will share their experience in resolving technical problems in productions and satisfying requirements in different product tests.
N Korea exports textiles worth $100 million despite ban
According to a confidential UN report, North Korea has violated a textile ban by exporting goods worth more than $100 million between October 2017 and March 2018 to several countries including Sri Lanka. The countries to which North Korea has exported include China, Ghana, India, Mexico, Sri Lanka, Thailand, Turkey and Uruguay. Additionally, North Korea has also not stopped its nuclear and missile programs in violation of United Nations sanctions. It is cooperating militarily with Syria and has been trying to sell weapons to Yemen.
The six-month report by independent experts monitoring the implementation of UN sanctions was submitted to the Security Council North Korea Sanctions Committee recently. The report was published even as Russia and China recommended that the Security Council discuss easing sanctions after US President Donald Trump and North Korean leader Kim Jong Un met for the first time in June. The United States and other council members recommended strict enforcement of sanctions until Pyongyang acts.
Sri Lanka’s July apparel exports up 12 per cent
Sri Lanka’s July apparel exports grew 12.1 per cent. Exports to the EU increased 16.35 per cent and to the US 7.8 per cent. Exports to other countries increased 12.7 per cent. Half yearly exports were up five per cent.
Sri Lanka expects apparel exports to the EU to grow above 10 per cent in 2018. New clients are switching from East Asian destinations to Sri Lanka over US-China trade war fears. The US is the biggest buyer of Sri Lankan apparel, growing 3.8 per cent. Exports to the EU are a close second, growing 7.8 per cent.
The trade dispute between the US and China is helping Sri Lankan apparel exports to the US. However, there’s concern about the European markets due to the weather conditions. Because of long winter in Europe, the retail sector slowed down as the long winters cause people to spend lesser time in shopping. Some manufacturers in Sri Lanka are still engaged in manufacturing basic apparel despite the country’s gaining the GSP Plus concession last year. What the industry is also doing is upgrading itself to the next level by focusing on high tech and designer apparel.
Wallet activism amongst consumers on the rise
Fashion consumers are becoming increasingly aware of the environmental and ethical conditions that their garments are produced in. They refuse to buy shady and shoddy crap even though these may be available at dirt cheap rates. A striking example of this is the plummeting sales reported by fast fashion labels and shutting down of her clothing line by Ivanka Trump. H&M too reported an enormous drop in sales and, as of last March, $4.3 billion of unsold inventory. Zara’s parent company Inditex is also seeing sluggish sales this year, driving its shares to a three-year low, while Forever 21 reported a $40 million loss at the end of 2017.
New and old fashion businesses alike are now focusing on creating transparent supply chains, or at least the impression of them. It is standard practice to talk about factory conditions, environmental stewardship, textile production methods, etc. in the FAQ section of fashion websites. There is a growing distaste among mainstream consumers for unethical fashion. The source of clothing now matters more than ever before and brands are questioning the source from where their raw materials are procured from.
Indonesia launches ‘Making Indonesia 4.0’ roadmap
The Indonesian textile industry plans to increase the export value of textiles and garments to $75 billion by 2030. The government recently launched the roadmap ‘Making Indonesia 4.0’ towards this. The term Industry 4.0 refers to the fourth industrial revolution in manufacturing and industry. The term strategy highlights the technological advancements, including the hi-speed internet, artificial intelligence, human-machine interface, 3D printing, robot and sensor technology, to boost industrial capacity and rapid change of production output.
RMG is one of the major priority sectors of Indonesia and the country can become a global leader under the roadmap, with manufacturing forecasts to account for 21 to 26 per cent of GDP by 2030, up from 18 per cent in 2016. It will create seven to 19 million new jobs by 2030 and that will contribute a sustainable GDP growth 1 to 2 percent.
To boost manufacturing activities, the government plans to target a series of major infrastructure projects, a supportive legal framework, and incentives for modern technology transfer and development under the ‘Making Indonesia 4.0 strategy’. To fulfill the transport and logistics demand, the government will construct 24 seaports, 3,258 km of rail lines, 2,650 km of new roads, 15 airports and mass rapid transit systems for six metropolitan areas.
Import duty on some textile products to be increased to boost domestic industry
The government is likely to hike import duty on about 300 textile products to boost domestic manufacturing and create employment opportunities. Additionally, it may also relax FDI norms for the sector. The products on which import duties are expected to increase include a few fabrics, garments and man-made fibres. The duties could be enhanced to 20 per cent from the current level of about 5-10 per cent. This increase in duties is likely to provide an edge to domestic manufacturers as the imported products are relatively cheaper. Increase in manufacturing will create jobs in the sector, which employs about 10.5 crore people.
In July, the Central Board of Indirect Taxes and Custom (CBIC) doubled import duty on over 50 textile products to 20 per cent, a move that is aimed at promoting domestic manufacturing. The imported products that have become expensive included woven fabrics, dresses, trousers, suits and baby garments.
Indian textile bodies urge government to push duty free access to China
Textile industry body has urged the government to push negotiations with China to give duty-free access to Indian cotton textiles. India exported $1,362 million worth of textile and apparel products to China in 2017-18, while the country's imports from China stood at $2,905 million, indicating a trade deficit of $1,543 million.
Indian products carry 3.5 per cent, 10 per cent and 14 per cent duty on yarn, fabric and made-ups, respectively. The country is losing business to nations like Vietnam, Indonesia, Pakistan and Cambodia who enjoy duty-free access to the Chinese market.
India's cotton yarn exports to China has decreased by 53 per cent in 2017 from 2013, while Vietnam's exports of cotton yarn to China has increased by about 88 per cent during the same period. Therefore, the textile industry body has urged the government to push negotiations with China to give duty-free access to Indian cotton textiles.
British brands back in business after facing a slowdown
Clothing manufacturers have had a major impact on the development of industrial Britain. From the cotton mills of Manchester to luxury wool trade of Scotland, the UK was once an important producer of apparel in Europe, and the industry sustained thousands of families.
But like nearly all western countries, clothing manufacturing in the UK suffered a sharp decline with the rise of fast fashion and the industry’s subsequent dependence on high-quality factories in China and Southeast Asia. Unable to compete with cheap, plentiful labor, British factories soon fell into disrepair. But now, the UK is slowly finding its manufacturing feet again.
There has been a year on year growth in the number of textile and apparel manufacturing companies in the UK since 2014. Even high street retailers like Marks & Spencer have moved toward using some domestic production. On top of that, there has been a 25 per cent rise in the export of British-made clothing since 2011. That has risen to 30 per cent since Brexit in 2016, as companies attempt to insulate against the coming adverse effects.
Established labels like Burberry and Alice Temperley have used the Made in Britain tagline for years, ensuring it’s synonymous with high-end, well-tailored luxury. But with the arrival of cutting-edge designers, it now has the cool factor, too.
Bangladesh has strong advantage in clothing
The revealed comparative advantage (RCA) of clothing industry of Bangladesh is high compared to major global competitors like China, Vietnam and India. The RCA of Bangladesh in the apparel industry was around 24 points in 2000, which increased to 29 in 2015.
Bangladesh’s high revealed comparative advantage in garments reflects the growing share of garment industry in its overall export basket. The RCA is a measure of the relative market share computed as the ratio of a country’s share in world exports of a particular item to that of the country’s overall share in world exports of all items.
However, India’s RCA in the apparel industry declined to 2.38 in 2015 from 4.47 in 2000. Since India’s liberalisation more than a quarter century ago, India’s share in the global exports of textile and footwear has declined even as smaller economies such as Bangladesh and Vietnam have seen their market shares rise sharply.
In the US market, India’s apparel exports accounted for only four per cent of US’ overall apparel imports in 2015, while Vietnam, Bangladesh and China accounted for 12 per cent, six per cent and 37 per cent market shares respectively.












