State of affairs

31st July 2021,Mumbai:

Welspun India consolidated net profit rises 343.12% in the June 2021 quarter

Net profit of Welspun India rose 343.12% to Rs 217.53 crore in the quarter ended June 2021 as against Rs 49.09 crore during the previous quarter ended June 2020.

Sales rose 84.26% to Rs 2214.49 crore in the quarter ended June 2021 as against Rs 1201.80 crore during the previous quarter ended June 2020.

The fifth Northeast India Traditional Fashion Week is now in progress

FY21 was a landmark year for the company, as it achieved $1 billion in annual revenue which is its highest ever.

Watch: https://www.youtube.com/watch?v=PULtc0N8mvk

TOP5:

1. The fifth Northeast India Traditional Fashion Week is now in progress

2. In India, Norlanka Brands introduces Lilly + Sid, a children's clothing line

3. ‘We expect 2022 to be a rocking year for the garment industry’

4. SC reserves verdict on Amazon’s appeal against the Delhi HC order to stall Future-Reliance deal

5. ‘India Couture Week 2021’ to showcase India’s top 19 designers

Read More:

DLF Mall, Delhi-NCR new store brings back ‘Guess’ to the consumers

Pandemic reorganizes Indian retail as trends emerge

Trident Ltd, leading home textile player starts commercial production at expanded capacity

19th July 2021,Mumbai:

Piyush Goyal, the new textiles minister, has set eyes on lofty target of shoring up the Sector's capacity by 10 times (YES YOU READ IT RIGHT), giving hopes that the government is seriously looking at taking more steps to give a leg up to investment and resultant boost in employment in this 2nd largest employer.

Though giving no road-map and indicating timeline at this stage. But given the resolute indications it is not unrealistic view.

 

What has been identified as thrust areas

 

Focus on improving the quality of handloom, handicrafts and standardising realising that; there is a vast potential in a burgeoning local market besides exports market, Man-made fibre along with Technical Textiles 

 

Current Sector status

 

Textile Sector size 140$ Bn & 50% comes from Apparel trade (GDP share 2.3%), employing 45 million workers or thereabouts.

Approx 25% of sector gets exported.

 

                                                                                                             

 

Recent Initiatives

The extension of Rebate of State and Central Taxes & Levies (RoSCTL) to provide 'Predictability & Visibility' to exporters when they negotiate contracts & investors 

Integrated textiles parks

The proposed free trade agreements with the UK & EU being our one of the largest trade partners expected to provide required impetus to Indian exporters

Mudra loans for startups to buy cotton-plucking machines to rent to farmers are proposed in the earnest to create jobs and employment supporting income for SMBs

 

 

Watch: https://www.youtube.com/watch?v=rEfD2nWfjvQ

 

Existing competitive landscape

 

Competing countries having to pay lower duties in these crucial markets thus they outdo Indian Exporters hands-down.

 

 

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With slew of measures the textiles industry is optimistic to compete more competitively with rivals such as Bangladesh/ Vietnams of the world, which enjoy unfair wage and tariff advantages.

 

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Snapdeal, FICCI FLO to launch online program for women entrepreneurs

AEPC welcomes extension of RoSCTL scheme till March 31, 2024

Extension of RoSCTL scheme till 2024 for textiles exporters

 

 

 

 

 

 

 

ReplyForward

 

 

 

GST  (Goods & Services) there are issues which still that bog & disrupt several industrial sectors in India. In some sense it is still work in progress.

But Unquestionably gst still remains post independence India's the boldest reform. 

A quick low down on the GST journey now that it has covered 4 years yesterday.

 Watch: https://www.youtube.com/watch?v=r5Ld6110rPM

Beneficiary Segments: Textile, Garment & footwear sectors in more than one ways.

Hits & Misses

Upside:

• GST reduced compliance burden unambiguously
• GST reduced input costs of the garment industry by subsuming complicated taxes
• What it has facilitated is such as streamlining payments, minimising multiplicity in taxes, reducing/ doing away with overlap & easing documentation resulting in targeted record keeping
• It has also resulted in integration of manufacturing activities in the units and across units in this fragmented sector

Downside:

What it is not as demanded that all indirect taxes must be brought under GST, so that exporters only need to claim a refund of the input taxes paid, making the system more efficient than separate reimbursement schemes

Issues that need redressal :

Reduction of GST slabs,

Inverted duty structure etc.

As per AEPC (APPAREL EXPORT PROMOTION COUNCIL),Chairman Dr A Sakthivel,"Though GST initially posed a lot of problems, over time GST has achieved it objective"

 

27th July 2021, Mumbai:

D. Venkateshwaran, Sri Lankan Deputy High Commissioner met Sabu Jacob, MD, Kitex Garments at Kitex head office in Kochi on Saturday and extended a formal invitation to the company to invest.

It is not the 1st red carpet invitation for the Apparel group from India; Earlier, Bangladesh and other countries in the Arabian Gulf region had also offered incentives on the same lines luring Kitex group to invest in their region & geography.

The company had recently announced to invest Rs. 1,000 crore in Telangana.

Just to place it on record, a delegation from the Madhya Pradesh industries department visited Kitex last week offering better facilities. 

Sabu M Jacob, MD Kitex Group 

There are states making a beeline on this investment as let's make no mistake Apparel sector is a big employer. 

 Watch: https://www.youtube.com/watch?v=Q3_4i0R8K8s

TOP 5:

With increased focus on sustainability trend, India’s raw cotton exports rise in FY21

Barcelona targets second tier

Raymond appoints S L Pokharna to its board as an additional director

Asics launches new campaign ‘’Celebration of Sports’’ with group of nine ‘youth icons’

Designers Palak, Aarohi Shah of famed brand ‘Ekaya Banaras’ team up for collaborative collection

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TATA Group to launch “super app” for create edge for consumer-facing businesses

Industry associations seek revisions in proposed e-commerce rules

Competition Commission of India (CCI) Accuses Amazon in Future deal

14th July 2021, Mumbai:

Garment exporters will continue to get a rebate on central and state taxes on their outward shipments as the government on Wednesday approved extension of RoSCTL scheme till March 2024.

The timing is apt as it coincides with the new Textile Minister taking charge & hitting ground running.

Enhancing competitiveness of the labour-intensive textiles sector at the core of this move.

The momentous cabinet approval comes in effect by none other than H'ble PM chairing the same for continuation of 'Rebate of State and Central Taxes and Levies (RoSCTL)' with the same rates as notified by the Ministry of Textiles (MOT) for exports of Apparel/ Garments & including made-ups.

"The best part is that scheme will be up until March 31, 2024. It will give +ve impetus to exports and creating meaningful job creation," Information & Broadcasting (I&B) Minister Anurag Thakur announced empathically this afternoon.

Fact Sheet

The sectors covered under this scheme (apparel/garments and made-ups) would not get benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

However, textiles products which are not covered under the RoSCTL would be eligible to avail the benefits, if any, under RoDTEP along with other products as finalised by the Department of Commerce.

The scheme will be implemented by the Department of Revenue with end-to-end digitisation for issuance of transferable Duty Credit Scrip, which will be maintained in an electronic ledger in the customs system.

Revised guidelines for continuation and implementation of the RoSCTL scheme will be prepared by the Ministry of Textiles (MOT) in consultation with the Department of Revenue with necessary flexibilities to fine tune the operational details, implementation modalities and scheduling.

"Continuation of RoSCTL for apparel/garments and made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism"

Under this scheme, exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic customs duty for the import of equipment, machinery or any other input.

These scrips are tradeable. So, if the exporter does not need this for his personal use, he can transfer the same to any other importer.

Earlier, under the RoSCTL scheme, maximum rate of rebate for apparel was 6.05% while for made-ups, this was up to 8.2%.

Watch: https://www.youtube.com/watch?v=as1ftbDaIgQ

Relatedd News:

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What AEPC had to say

Apparel Export Promotion Council (AEPC) Chairman, Dr A Sakthivel said," the extension will help exporters get all embedded taxes and make products globally competitive".

"The scheme will go a long way in bringing back positive sentiments and helping the Indian textile value chain attain USD 100 billion annual exports in next three years," alludes AEPC Chairman. 

Dr Sakthivel also was generous in appreciating on the back of the fact that scheme will prove to be a momentous strategic decision towards generating several lakhs of new jobs, more importantly for the vulnerable sections, including semi-skilled, rural youth, migrants and women in the MSME segment. He also opines that quantum incremental exports in coming seasons is a natural corollary to this welcome sops and incentives.

Read More:

Raymond Ltd reports 45% revenue decline in FY21

Jyothi Rao,Intermix inducted to J Jill’s board of directors

India’s knitwear industry loses revenues as raw material prices surge

Asian garment factories in crisis as brands resort to wage theft to cut costs

The Federation of Indian Export Organisations (FIEO) will focus & exhort its worthy members for persuing seriously the export promotion side of business, as the government aims to targets lofty $ 400 billion worth exports during the FY21, alluded A. Sakthivel, who assumed office as chairman of FIEO on Monday. The target is doable asserts new incumbant with the concerted efforts of the government and the industry.

Watch: https://www.youtube.com/watch?v=l3KF2NZTR5c

 E-com help fabric brands grow business with demand on the rise

The Cotton Association of India (CAI) urges withdrawal of 10% cotton customs duty

v2 retail ltd Q4FY21 puts up impressive performance

India Couture Week 2021 (Digital) from August 25 to 29.

Crocs India connects with Gen Z

23rd July 2021,Mumbai:

The Competition Commission of India (CCI) has slapped Amazon with a show-cause notice, alleging the Global biggie retailer of a case of misrepresentation & hiding material information in 2019, whilst it was aiming at receiving ,The Anti-trust Watchdog's Approval' in its effort to buy a 49% stake in 'Future Group entity Future Coupons (FCPL)'

This adds a fresh twist and adds a new dimension to ongoing the time-drawn bitterly fought legal battle between Amazon India & Kishore Biyani's Future Group over the proposed sale of FRL to Reliance Industries (RIL) for a business consideration of Rs 24,700 crore.

Amit Agarwal, Country Head, Amazon India

TOP5

1. Arvind Fashions looks at giving Unlimited access of 'Umlimited Fashion' to V-Mart

2. Soch Apparels witnesses strong online growth amid COVID-19 crisis

3. Online shoppers urge government against banning e-commerce sales: reports LocalCircles

4. 2nd ‘Aura Fashion Week’ slated in Nov.’21 alongside pageant ‘Aura Mr, Miss & Mrs India’

5. Industry Associationss Seek Thoughtful Revision in Draft E-Commerce Rules

Amazon India Position

.

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

21st July 2021,Mumbai:

Industry Groupings 'USISPF, IAMAI AND INDIATECH' INCLUDING PEERS COUNTING E-COM BIGGIES SUBMIT FEEDBACK TO GOVT 

WHAT Industry Groupings Seek:

Meaningful tenable changes in e-commerce rules

Seeking to defining related parties clauses removed on service providers as ecomm entities restricting/ banning flash sales, assert Industry associations

Urges to have the amenable re- vision of a host of contentious clauses once in for all in India's draft e-commerce rules 

Asserting to a Re-look Industry, states and field formations have flagged many issues/ concerns regard to current GST regime

Do away with clause on need to offer local alternatives while selling Imported goods or services

Explicitly explain the confusion around 'price manipulation clearly'

Antitrust & importantly data related issues should be well-left to concerned departments, ministries & authorities.

Broad changes to cause

A perpetual ask to simplify the law and reduce disputes

 

Watch: https://www.youtube.com/watch?v=2UcHvEd2mpo 

 

 

Argument on this side of table,"Unequivocally re-assert prevailing unpredictability in an industry that's still growing & evolving, light-handed regulation to support sector; As recent Proposals may end up hurting consumers, stall sector growth"

 

 

                                                                                                              

                                                                                                                 Win-Win rules for all the stakeholders

 

 

 Relevant News:

Amazon urged SC to execute Singapore Emergency Arbitrator (EA) Order restraining Future Retail (FRL)-Reliance Retail deal

Snapdeal flips business model to target 'value-conscious consumers’

RIL-FRL deal: NCLT reserves order on Reliance Retail's plea seeking shareholders consent

 

 

In a submission to the 'Department of Consumer Affairs (DCA)' on Wednesday, USISPF (US-India Strategic Partnership Forum) appealed that the draft proposals as things stand today "problematic/ complex and are oblivious to take into cognisance by not recognising that all marketplaces are akin, and as things stand today perhaps are not symmetric to relationships with buyers and sellers, refusing to appreciate need for or effectiveness of prescriptive laid down guidelines". 

 

 

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Apparel Export Promotion Council (AEPC) has lauded the government and exporters for achieving the highest ever merchandise exports of $95 billion in Q1 (April-June quarter) FY 2021-22. As per recent reports, the export of cotton yarn/ fabrics/made-ups grew by 50.86 per cent in June 2021 over June 2019.

Dr A Sakthivel, Chairman, AEPC said, the $400 billion merchandise export target of FY22 is doable.

However, apparel exports could not benefit much from the resurgence in global demand despite a good order book due to lock-downs in many important states, Sakthivel added. He said while overall global demand has remained buoyant, the lock-downs in different parts of the country had kept factories in a partial shutdown.

With decline in daily cases of infection and resumption of economic activities, India is now set to achieve unprecedented export figures this year, he said. 

Watch: https://www.youtube.com/watch?v=KOcERGKODhQ

Dr A Sakthivel, Chairman, AEPC requested & appealed the government to ensure personalized management of MSME exports and early clearance of Rebate of State and Central Taxes and Levies (RoSTCL) cases pending since January 2021.

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.