14 August 2023, Mumbai

Context setting

India's textile sector is a major driver of the economy, providing employment to millions of people and generating billions of dollars in export revenue.

The sector is highly diverse, with a wide range of products and services, from traditional handwoven fabrics to cutting-edge textiles.

It is also highly competitive, with a large number of small and medium-sized enterprises.

India's textile sector is a major driver of the economy, providing employment to millions and generating billions in export revenue. It is facing challenges, but the India-EU FTA could help it become a global leader.

What all you need to know

Export Performance

India is a major exporter of textiles, with exports worth $7.3 billion in 2022.

The EU is a major destination for Indian textiles, accounting for 9% of India's total textile exports.

However, Indian textiles face stiff competition from other countries, such as Bangladesh and Vietnam, which have preferential tariff arrangements with the EU.

India-EU Free Trade Agreement

India is negotiating a free trade agreement (FTA) with the EU, which would eliminate tariffs on textiles and other products.

The FTA would also address other issues important to the textile sector, such as sustainability and intellectual property rights.

Conclusion

The India-EU FTA has the potential to boost the Indian textile sector and help it become a global leader.

The sector is facing some challenges, such as rising costs and competition from other countries. However, it is also well-positioned to take advantage of the opportunities offered by the FTA.

Additional Points

India has one of the world's oldest textile traditions, dating back thousands of years.

The textile sector is a major employer in India, providing jobs to millions of people.

The sector is a major source of foreign exchange earnings for India, generating billions of dollars in export revenue each year.

The sector is facing some challenges, such as rising costs and competition from other countries. However, it is also well-positioned to take advantage of the opportunities offered by the global economy.

The Indian textile sector is a key driver of the economy and has the potential to play a leading role in the global textile industry. The India-EU FTA is a major opportunity for the sector to grow and prosper.

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11 August 2023, Mumbai

Increased Transparency Requirements

The European Union (EU) has recently adopted new regulations that require apparel brands to be more transparent about their supply chains. These regulations demand comprehensive information about supplier identities, working conditions, and environmental impact.

What all you need to know

Hefty Fines for Non-Compliance

Non-compliance with these regulations can result in hefty fines. 

This is putting apparel brands under pressure to ensure that their products are ethically sourced and manufactured.

Supply Chain Transparency as a Competitive Advantage

In addition to avoiding fines, supply chain transparency can also provide apparel brands with a competitive advantage. 

By having visibility into their supply chains, brands can make better decisions about inventory management, product development, and logistics.

Technology to the Rescue

Technology is playing a key role in helping apparel brands achieve supply chain transparency. 

Tools such as production tracking software and digital quality management tools can help brands to monitor their suppliers closely, communicate with them effectively, and establish safeguards to prevent ESG violations.

H&M: A Leader in ESG Performance

Swedish fashion giant H&M is one example of a brand that is using technology to improve its ESG performance. 

The company has partnered with the global union federation IndustriALL to improve working conditions in its supply chain. 

H&M is also using technology to track its suppliers and monitor their environmental impact.

Other Apparel Brands Making Progress

Other apparel brands are also taking steps to improve their ESG performance. Nike and VF Corp are two industry leaders that have made significant commitments to sustainability. 

These companies are investing in renewable energy, reducing their water usage, and using recycled materials in their products.

Guess Sets an Example with Comprehensive ESG Strategy

Lifestyle brand Guess is another brand that is setting an example with its comprehensive ESG strategy. 

The company has published a detailed ESG report that outlines its goals and progress in areas such as labor practices, environmental impact, and governance.

China's Role in Improving ESG Standards

China is also playing a role in improving ESG standards in the apparel industry. The country is investing heavily in the textile sector in Ethiopia, which is helping to create jobs and improve working conditions for women.

UK Fashion Retailers Face Scrutiny

The UK fashion industry is also facing scrutiny over its labor practices. A recent ranking by the Alva Group found that there is a wide range of ESG performance among UK fashion retailers. Some brands, such as Primark and Boohoo Group, are lagging behind in areas such as labor practices and safety.

The Future of ESG in the Apparel Industry

The new ESG regulations in the EU are a wake-up call for the apparel industry. Brands that fail to comply with these regulations will face stiff penalties. 

However, brands that embrace transparency and sustainability can gain a competitive advantage in the long run.

The ESG regulations in the EU are part of a broader trend of increased scrutiny of the apparel industry. 

Consumers are demanding more ethical and sustainable products, and brands are under pressure to meet these demands. 

Technology is not a silver bullet for ESG compliance, but it can play a valuable role in helping brands achieve their ESG goals. The ESG regulations in the EU are a challenge for the apparel industry, but they also represent an opportunity. 

Brands that can embrace transparency and sustainability can gain a competitive advantage and build a more sustainable future for the industry.

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08 August 2023, Mumbai

Key Drivers of Growth, Trends

A joint report by e-commerce facilitator Shiprocket and ONDC has forecast that consumer spending in India is poised to surpass $4 trillion by 2030, propelled by a robust compound annual growth rate (CAGR) of 10%.

The report, titled "eCommerce In The New Bharat And Its Future," was unveiled during Shiprocket's esteemed SHIVIR summit in 2023. 

It highlights a number of key drivers of this growth, including:

Technological advancements in consumer goods

Escalated internet penetration

A thriving local consumer ecosystem

Evolving expenditure trends

Rising participation of the female workforce

Supportive policies like Make in India and Aatmanirbhar Bharat

What all you need to know

Kickers:

The report underscores the influential role of India's youthful demographic, with a median age of 31 by 2030, in driving this growth trajectory. 

The study accentuates the substantial potential in catering to millennials and Gen Z, who are projected to comprise 77% of India's populace by 2030.

These young consumers are increasingly tech-savvy and have a growing appetite for online shopping. 

They are also more likely to be open to trying new brands and products, which presents a significant opportunity for Indian businesses.

The report also highlights the importance of technological advancements in consumer goods. 

The rise of smartphones, e-commerce platforms, and digital payments is making it easier and more convenient for consumers to shop online. This is expected to further accelerate the growth of consumer spending in India in the coming years.

Trends in Online Shopping:

The report also provides insights into the latest trends in online shopping in India. It finds that categories such as food, housing, apparel, transportation, communication, and personal care are anticipated to witness a twofold surge in spending by 2030.

E-commerce is positioned as a pivotal catalyst for this burgeoning consumer outlay, as nearly 80% of consumers now prefer online marketplaces. 

The report emphasizes that a substantial 76% of consumers opt for prepayment. 

Notably, UPI emerges as the favored choice (57%), followed by credit cards (31%), and other alternatives like wallets, net banking, and debit cards (12%).

The report envisions UPI's popularity leading to a noteworthy 34% decline in cash transactions and an impressive 88% surge in digital payments by 2026.

Opportunities for Indian Brands:

The report also highlights the significant opportunities for Indian brands to expand their reach and grow their business in the global market. 

It finds that currently, fashion and lifestyle dominate online shopping trends, accounting for 48% of purchases, trailed by electronics (32%) and groceries (30%).

The report unveils that over 50% of Indian consumers prioritize product quality when making online purchase decisions. 

This presents a major opportunity for Indian brands to showcase their high-quality products to a global audience.

However, the report also finds that a staggering 72% of Indian brands have yet to explore international sales. 

This presents a significant growth opportunity, as both local and international consumers express keen interest in acquiring Indian products.

Short & Long

The report concludes that the Indian consumer market is poised for explosive growth in the coming years. 

This growth will be driven by a number of factors, including a young and tech-savvy population, a thriving local consumer ecosystem, and rising disposable incomes.

Indian businesses that are able to capitalize on these trends will be well-positioned to succeed in the global market.

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11 August 2023, Mumbai

Iconic

Raymond, one of India's oldest and most respected textile and apparel brands, has undergone a major restructuring in recent years. 

The company has exited several non-core businesses, such as steel, cement, and synthetics, and is now focused on its core strengths of real estate, lifestyle, and engineering.

What all you need to know

Focal point

The lifestyle business is a key focus area for Raymond, and the company plans to double its size in the next five years. In 2023, the lifestyle business saw a 19% growth in the branded apparel segment. 

Raymond is investing in strategic initiatives to bring its power brands Colors, Park Avenue, and Raymond RTW back on track for growth and expansion.

Expansion

The company is also expanding its retail footprint. There are currently 300 Exclusive Brand Outlets (EBOs) between Colors, Park Avenue, and Raymond RTW, and the plan is to increase the number to 600 by 2025-26. 

The newly launched label Ethnix will also be in focus, with plans to grow the number of EBOs from 75 to 300 by 2025-26.

Raymond is also looking to expand its presence in the casual wear segment, which accounts for 40% of the men's apparel market. The company plans to launch new casual wear brands and products under its Colors and Park Avenue labels.

In addition to its retail expansion, Raymond is also investing in digital marketing and e-commerce. 

The company has launched its online store and is partnering with e-commerce platforms such as Amazon and Flipkart.

Strategizing

With its focus on restructuring, strategic investments, and expansion, Raymond is well-positioned to grow its lifestyle business in the coming years. 

The company is targeting 17-20% EBITDA growth and a 15% revenue increase in FY24.

Key takeaways

Raymond is restructuring its business to focus on its core strengths of real estate, lifestyle, and engineering.

The company plans to double the size of its lifestyle business in the next five years.

Raymond is investing in strategic initiatives to bring its power brands back on track for growth and expansion.

The company is expanding its retail footprint and entering the casual wear segment.

Raymond is investing in digital marketing and e-commerce.

The company is targeting 17-20% EBITDA growth and a 15% revenue increase in FY24.

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08 August 2023, Mumbai

India is one of the world's largest cotton producers, but the industry is facing a number of challenges in 2023. 

Farmers are facing low prices for their crops, stagnant production, and rising costs.

Low prices; Cotton prices have been declining in recent months, due to a number of factors including a global slowdown in demand and increased production in other countries. This has led to low prices for farmers, who are struggling to make a profit.

What all you need to know

"perfect storm"

India's cotton industry is in a tailspin, facing a perfect storm of low prices, stagnant production, and rising costs.

This highlights the severity of the challenges and the potential impact on the industry and the country.

India's cotton industry faces challenges of depressed prices, languid production, and escalating costs. Farmers struggle financially, and some considering abandoning agriculture.

Government can provide financial relief, invest in R&D, develop drought-resistant strains, and promote sustainable practices.

Stagnant production; India's cotton production has been stagnant in recent years, due to a number of factors including climate change, pest infestations, and water shortages. 

This has led to a decrease in supply, which has put further pressure on prices.

Rising costs; The cost of inputs for cotton production, such as fertilizers and pesticides, has been rising in recent years. This has made it even more difficult for farmers to make a profit.

Impact on farmers

The challenges facing India's cotton industry are having a significant impact on farmers. Many farmers are facing financial difficulties, and some are even considering quitting farming altogether. 

This could lead to a decrease in cotton production in India, which could have a negative impact on the global cotton market.

Way forward

• India's Cotton Industry Facing Headwinds

There are a number of things that can be done to address the challenges facing India's cotton industry. These include:

Providing financial assistance to farmers.

Investing in research and development to improve productivity

Developing drought-resistant varieties of cotton.

Promoting sustainable farming practices.

By taking these steps, India can help to ensure the long-term viability of its cotton industry.

In addition to the challenges mentioned above, India's cotton industry is also facing scrutiny for its use of forced and child labor and for polluting the environment. 

Some companies are working with farmers to address these issues, but more needs to be done to ensure that India's cotton industry is sustainable and ethical.

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14 August 2023, Mumbai

FDI in manufacturing sector surges by 57% between 2014 and 2022

India's ambitious "Make in India" initiative has achieved a remarkable feat, with Foreign Direct Investment (FDI) in the manufacturing sector experiencing an impressive surge of 57% between 2014 and 2022.

This is a significant achievement for India, as it demonstrates the global confidence placed in the country's economic prowess. The "Make in India" initiative has also led to increased investment in innovation and global collaborations, which will help India to become a global manufacturing powerhouse in the years to come.

What all you need to know

This substantial increase not only underscores India's industrial capabilities but also signifies the global confidence placed in the nation's economic prowess. This revelation was brought to light by MoS Commerce and Industry, Som Parkash, who shared this data as a response in the Lok Sabha.

India is attracting global attention as a manufacturing powerhouse

US chip giant AMD commits $400 million investment

Amazon dedicates $1 billion to empower MSMEs.

On the international stage, India's allure as a manufacturing powerhouse has garnered the attention of global corporations. 

Evidently, industry leaders are setting up production bases or expressing keen interest. 

Supportive

Notable among these is the US chip giant, Advanced Micro Devices (AMD), which has committed a substantial investment of $400 million over the span of five years, thus driving India's ambitions in the technology sector. 

Equally noteworthy is Amazon, the mammoth e-commerce platform, which has dedicated an astounding $1 billion to empower Indian Micro, Small, and Medium Enterprises (MSMEs) and traders through digital means. 

The expansive Amazon India marketplace boasts a staggering 550,000 vendors, alongside 60,000 "Make in India" proponents who are actively exporting to global customers.

The "Make in India" initiative is transforming India's manufacturing sector

"Make in India 2.0" spans 27 sectors

Pro-business measures, reductions in corporate tax, and improvements in operational ease are boosting manufacturing dynamism.

"Production-Linked Incentive" (PLI) schemes in 14 key sectors are expected to propel India's manufacturing capabilities and exports

"One District One Product" (ODOP) 

This initiative is catalyzing socio-economic growth across regions

Project Development Cells (PDCs) are expediting investments and bolstering India's investment landscape.

The holistic socioeconomic growth across regions is the essence of the "One District One Product" (ODOP) initiative. 

This visionary effort spotlights a unique product from each district, spanning textiles, agriculture, food processing, handicrafts, and beyond. With over 1000 products identified across all 761 districts, this directive from the Ministry is set to catalyze prosperity and economic vibrancy.

Transformative journey

The "Make in India" initiative, since its inception in 2014, has triggered a revolutionary transformation in domestic production. 

This evolution has propelled India's ascent as a global manufacturing hub, with the "Make in India 2.0" initiative spanning across 27 sectors. 

This comprehensive endeavor integrates the efforts of central and state governments, as well as various ministries, to bolster this transformative journey. 

Ease of doing

The ongoing reforms, such as pro-business measures, reductions in corporate tax, improvements in operational ease, alterations in FDI policies, and efforts to mitigate compliance burdens, collectively amplify India's manufacturing dynamism.

Catalytic actions

The trajectory of growth is further fueled by catalytic schemes and initiatives, particularly the "Production-Linked Incentive" (PLI) schemes in 14 key sectors. 

With a substantial investment outlay of Rs. 1.97 lakh crore, these schemes are expected to propel India's manufacturing capabilities and exports. 

The ripple effects are anticipated to manifest as increased production, enhanced skills, heightened employment opportunities, economic growth, and an augmented export sector over the next five years, all stemming from the impetus provided by the PLI programs.

Further propelling India's growth journey is the institutional mechanism of Project Development Cells (PDCs), strategically established in various ministries and departments. This mechanism expedites investments and bolsters India's investment landscape, contributing to the nation's accelerated growth trajectory.

In essence 

India's "Make in India" initiative has ignited an industrial revolution

In a true sense, India's "Make in India" initiative has ignited an industrial revolution, driving not only FDI but also innovation and global collaborations. 

This paradigm shift solidifies India's stature as a global manufacturing powerhouse, poised to shape the future of production and economic development.

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10 August 2023, Mumbai

The secondhand clothing industry in Central America is booming, thanks to a combination of affordable prices and growing environmental concerns.

What all you need to know

Reference to context

The pandemic has changed the age-old, shabby, and worn-out image of secondhand fashion and encouraged young fashionistas to embrace pre-worn or used clothes.

In recent years, there has been a sharp increase in the demand for secondhand clothing in Central America. 

This is due in part to the region's high poverty rates, which make it difficult for many people to afford new clothes. 

Secondhand clothing is often much cheaper than new clothing, making it a more affordable option for many people.

Affordable Prices, Environmental Concerns Drive Growth

In addition to affordability, environmental concerns are also driving the growth of the secondhand clothing industry in Central America. 

Many people are becoming more aware of the environmental impact of the fashion industry, and are looking for ways to reduce their consumption of new clothes. 

Secondhand clothing is a great way to do this, as it helps to reduce the amount of waste produced by the fashion industry.

Incidental growth

The growth of the secondhand clothing industry in Central America is creating new opportunities for both businesses and consumers. 

Businesses are opening up new thrift stores and online marketplaces to sell secondhand clothing. 

Consumers are finding great deals on high-quality clothes, and are helping to reduce their environmental impact at the same time.

Inclusivity

The secondhand clothing market is expected to continue to grow in Central America in the coming years. 

This is a positive trend, as it will help to make affordable clothing more accessible to people in the region, and it will also help to reduce the environmental impact of the fashion industry.

Here are some additional details from the essay that could be included in the rewrite:

The secondhand clothing industry in Central America is worth an estimated $274 million.

The industry is expected to create over three million jobs in the region by the early 2040s.

What's what

The growth of the secondhand clothing market is being driven by several factors, including rising disposable incomes, increasing environmental awareness, and the availability of online marketplaces.

The secondhand clothing industry is helping to reduce the environmental impact of the fashion industry by diverting used clothing from landfills and incinerators.

Secondhand clothing is also a more affordable option for people in Central America, who often have limited resources.

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07 August 2023, Mumbai

The global fire-resistant fabrics market is expected to grow significantly in the coming years, reaching a value of US$6 billion by 2033. 

This growth is being driven by several factors, including technological innovation and increased demand from industrialization.

Technological Innovation and Increased Demand from Industrialization to Drive Growth in Fire-Resistant Fabrics Market.

What all you need to know

Technological Innovation

Technological innovation is opening up new opportunities for manufacturers of fire-resistant fabrics. 

For example, new fibers and fabrics are being developed that are more flame-resistant, durable, and comfortable than ever before. 

These new fabrics are making fire-resistant fabrics more appealing to a wider range of end users, such as those in the oil and gas, chemicals, and manufacturing industries.

One of the most significant technological innovations in the fire-resistant fabrics market is the development of aramid fibers. Aramid fibers are extremely strong and flame-resistant, making them ideal for use in fire-resistant fabrics. 

Aramid fibers are also lightweight and comfortable, making them a good choice for a variety of applications.

Another important technological innovation in the fire-resistant fabrics market is the development of melamine-treated fabrics. 

Melamine-treated fabrics are treated with a flame retardant that makes them resistant to fire. 

Melamine-treated fabrics are often used in applications where a high degree of flame resistance is required, such as in firefighting gear and military uniforms.

Increased Demand from Industrialization

Industrialization is also driving demand for fire-resistant fabrics. As more and more industries adopt automated processes, the risk of fire increases. Fire-resistant fabrics can help to protect workers from burns and other injuries in the event of a fire.

The oil and gas industry is one of the major drivers of demand for fire-resistant fabrics. 

The oil and gas industry is a high-risk environment where fires can occur easily. Fire-resistant fabrics are used to protect workers from burns and other injuries in the event of a fire.

The chemicals industry is another major driver of demand for fire-resistant fabrics. 

The chemicals industry is also a high-risk environment where fires can occur easily. 

Fire-resistant fabrics are used to protect workers from burns and other injuries in the event of a fire.

The manufacturing industry is also a major driver of demand for fire-resistant fabrics. The manufacturing industry is a high-risk environment where fires can occur easily. 

Fire-resistant fabrics are used to protect workers from burns and other injuries in the event of a fire.

Bottomline

The combination of technological innovation and increased demand from industrialization is expected to drive significant growth in the fire-resistant fabrics market in the coming years. 

The market is expected to reach a value of US$6 billion by 2033, with a CAGR of 6.3%. 

Fire-resistant fabrics are becoming more flame-resistant, durable, and comfortable, thanks to technological innovation. This is driving demand from industries with a high risk of fire, such as oil & gas, chemicals, and manufacturing.

This gist captures the key points of the article in a concise and informative way. It highlights the two main drivers of growth in the fire-resistant fabrics market:

• Technological innovation and increased demand from industrialization.
• It also mentions the specific industries that are driving demand for fire-resistant fabrics.

CREDITS| Future Market Insights Inc. report

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