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Fibre2Fashion
4 days ago
- Business
- Fibre2Fashion
UK relaxes import rules, boosting retailers & developing nations
British consumers and businesses are set to benefit from a new package of trade measures unveiled on July 10, designed to simplify imports from developing countries and support global economic growth. The measures are part of an upgrade to the UK's Developing Countries Trading Scheme (DCTS), which aims to lower prices on everyday goods while promoting trade with some of the world's poorest nations. They will give UK consumers greater access to competitively priced imports, such as clothing. The UK has upgraded its Developing Countries Trading Scheme to simplify imports and boost trade with developing nations. The reforms include relaxed rules of origin, supporting tariff-free access for goods like garments from countries such as Bangladesh and Sri Lanka. Retailers like M&S and Primark are set to benefit from lower costs and stronger supply chains. Key reforms include simplified rules of origin, allowing more products from countries such as Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when made using components from across Asia and Africa. Countries like Bangladesh and Cambodia will continue to enjoy zero tariffs on goods such as garments and electronics, British Embassy Phnom Penh said in a release. 'The world is changing. Countries in the Global South want a different relationship with the UK as a trading partner and investor, not as a donor. These new rules will make it easier for developing countries to trade more closely with the UK. This is good for their economies and for UK consumers and businesses,' said Minister for International Development Jenny Chapman. Retailers such as M&S and Primark are expected to benefit significantly, gaining improved access to competitively priced imports and more resilient supply chains. Over £16 billion (~$ 21.52 billion) worth of UK imports have already benefitted from tariff savings under the DCTS since its launch in June 2023. 'We welcome the changes to the DCTS rules of origin for garments which remove the potential cliff edge when a country graduates from Least Developed Country status. This will help us to maintain our existing supply chain strategy in our key sourcing markets in Asia, such as Bangladesh and Cambodia,' interim chief executive at Primark, Eoin Tonge said. The changes also include new support measures to help exporters in developing nations meet UK import standards, alongside efforts to ease trade in services like digital, legal, and financial sectors. These steps are part of the UK's broader 'Trade for Development' agenda and its newly published Trade Strategy, aimed at growing the economy, supporting households, and strengthening international partnerships. The announcement was made at a joint reception hosted by the Department for Business and Trade (DBT) and the Foreign, Commonwealth & Development Office (FCDO), attended by British business leaders and foreign ambassadors. 'UKFT welcomes these additional changes to the Rules of Origin under the DCTS, which will bring real benefits to the fashion industry in the UK and in DCTS countries,' added Adam Mansell, CEO, The UK Fashion & Textiles Association. 'We warmly welcome the UK's Trade Strategy. The new rules allowing greater regional sourcing for garments while retaining duty-free access to the UK are a game-changer,' stated Yohan Lawrence, secretary general of the Joint Apparel Association Forum (JAAF), Sri Lanka. Fibre2Fashion News Desk (HU)
Time of India
24-06-2025
- Business
- Time of India
Tiruppur in trouble? What is ailing this Rs 70,000-crore textile cluster from scaling up
Despite its remarkable growth over the years, Tiruppur faces significant challenges of infrastructure, capital and labour which make it less competitive. Live Events ET Online Technological upgrade is one of the biggest challenges facing the textile sector. According to experts, Tiruppur needs a technological upgrade to compete with global peers. ET Online The labour shortage is one more factor that has impacted MSME growth in the textile cluster. Last year, there was a shortage of 100,000-150,000 labourers. Tucked away on the banks of the Noyyal River in Western Tamil Nadu, Tiruppur, at first glance, may appear to be a quiet, nondescript town. Its modest appearance, however, belies its status as a heavyweight in global textiles. But the numbers say it all. The textile cluster generated a whopping Rs 70,000 crore in total trade in FY25. In fact, Tiruppur accounts for 90% of India's cotton knitwear exports and 54% of overall knitwear exports, earning it the distinction of the 'Knitwear Capital of India'.Not just in the last fiscal year, Tiruppur has been consistently contributing more than half to India's total knitwear exports over the past several years. In FY25, it achieved a record export of Rs 39,618 crore in knitwear products, an increase from Rs 33,045 crore in FY24 and Rs 27,280 crore in FY20, according to data from the Ministry of Commerce and Industry ().Despite its remarkable growth over the years, Tiruppur faces significant challenges. Until recently, the absence of a level playing field with nations like Bangladesh, which benefits from duty-free access in textiles as a Least Developed Country (LDC), made exports in Tiruppur highly uncompetitive. Although the recent political instability in Bangladesh and the China+1 strategy presented growth opportunities, with global clothing brands shifting their focus to India, it was in-depth conversation with a cross-section of industry players during's recent visit to Tiruppur reveals that addressing the issues of skilled labour availability, infrastructure improvements, and investing in technology upgrades is vital to the future prospects of before we dive in, let's take a trip down memory initial exports (direct) from Tiruppur started with Italy. Verona, an Italian garment importer, came to the city in 1978 through Mumbai exporters to purchase white T-shirts. At that time, a lot of workers were engaged in manufacturing garments for merchant exporters. Seeing the potential, Verona brought European business to Tiruppur, according to the Tiruppur Exporters Association TEA ). Three years later, the European retail chain C&A entered the market, followed by other stores who approached exporters for garment supplies. Eventually, exports from Tiruppur started in the 1980s with 15 export units. In 1985, the city exported garments worth Rs 15 crore.'In the past, we did not have the technology for dyeing, and we needed water; neither did we know the technology for converting the grey fabric into colour,' remembers Kumar Duraiswamy , Joint Secretary of TEA. 'All these were developed by our own R&D.'Initially, Tiruppur produced only white fabric. As buyers wanted more colours, they sourced the dyes from Ahmedabad and the northern parts of the country. 'We initially dyed it in an iron drum, later upgraded to a tile tank, and subsequently evolved to a steel tank. Then machines from Europe, the US, Taiwan, and Japan replaced this steel tank,' he next couple of years were a windfall, with exports from the cluster touching Rs 300 crore in 1990. In FY25, the number scaled to a record Rs 40,000 crore, while the domestic consumption grew to an impressive Rs 30,000 the Tiruppur textile cluster houses more than 20,000 units. Among these, over 2,500 units engage in knitting, more than 11,100 units handle sewing jobs & other ancillary tasks, and over 2,500 produce garments for exports; collectively, these units directly employ over 600,000 business continues to expand, Tiruppur also encounters challenges that emerge along the upgrade is one of the biggest challenges facing the textile sector. According to experts and industry players, Tiruppur, the country's largest textile cluster, needs a technological upgrade to compete with global peers. 'We need at least 50% capex for the upgradation of technology,' says Thirukkumaran Natarajan , Chairman of Esstee Exports India and General Secretary of hurdle is size. The Tiruppur textile cluster comprises mostly MSMEs. Currently, among the 2,500 exporters in the city, the top 100 generate business totalling Rs 20,000 crore, while the remaining 2,400 account for the balance of Rs 20,000 crore. 'These 100 big exporters are doing fairly well,' says Duraiswamy, as they can foresee the market over the next 20 years and are improving their offerings while monitoring their competitors. 'However, those [smaller] units that cannot observe these aspects or fail to keep up with the competition are still trailing as far as growth is concerned,' he textiles, Bangladesh and China are the main competitors of India. 'The government offers full subsidies in Bangladesh, unlike in India, where we don't get such kinds of subsidies here,' says Siva Subramaniam , Founder & Chief Executive of Raft Garments, a second-generation manufacturer and exporter of sustainable T-shirts, intimate wear and sweaters from Tirupur, which, according to him, makes it difficult for Indian exporters to compete with labour shortage is one more factor that has impacted MSME growth in Tiruppur. Last year, there was a shortage of 100,000-150,000 labourers, as migrant workers who returned to their home states to cast votes in the Lok Sabha elections were reluctant to come back. The workers believed they would secure jobs in their home states. In fact, labour is more expensive here, says Subramaniam, making it challenging for exporters to compete with other countries. 'While wages hover between Rs 8,000 and Rs 10,000 per month in Bangladesh, in India it easily ranges between Rs 15,000 and Rs 18,000 per month,' he also highlights the need for an improvement in infrastructure to attract more international buyers. 'We don't have direct access to the airport. Buyers from New York or London must first travel to Chennai or Mumbai. From there, they take a flight to Coimbatore and then drive to the factories in Tiruppur. So, it is quite arduous for them to plan a visit.'While the government has announced various schemes to uplift the textiles sector, they have yielded limited benefits so far, especially for MSMEs in Tiruppur. For instance, the National Technical Textiles Mission (NTTM). The initiative was launched in 2020 with the government allocating Rs 1,480 crore for the FY21-FY26 period. However, only Rs 509 crore has been spent as of January 1, 2025, which points to the need for further efforts to elevate the prominence of clusters like Tiruppur as a global knitwear government initiative is the Technology Upgradation Fund Scheme (TUFS). It was first launched in 1999 by the Ministry of Textiles as a credit-linked subsidy scheme intended for the modernisation and technological upgradation of the textile industry in the country. It was discontinued in 2010, and the government launched the Restructured TUF Scheme (RTUFS) in 2011. Over the years, the scheme showed up with different names, such as the Modified Technology Upgradation Fund Scheme, the Revised Restructured Technology Upgradation Fund Scheme (RRTUFS), and the Amended Technology Upgradation Fund Scheme (ATUFS) in 2016, which was valid till March 2022. However, there has been no update on this scheme since then. The scheme was an important tool helping the textiles industry expand into domestic and global markets by funding technology upgrades, quality production, and efficiency, thereby improving scenario is comparable for the much-publicised Production-Linked Incentive (PLI) scheme for textiles, which seeks to promote the production of man-made fibre (MMF) apparel, MMF fabrics, and technical textile products in the country. The scheme requires a minimum investment of Rs 100 crore and a minimum turnover of Rs 200 crore per company. 'The terms and conditions of the PLI, as per Duraiswamy, are 'Greek and Latin' for smaller players. 'The PLI scheme is only for 3-4% of the industry; the rest cannot comply,' he of Esstee Exports India concurs, saying that the Rs 100 crore investment is intended for a large format industry focused on MMF. Tiruppur has traditionally relied on cotton, and only recently has there been some scope emerging for MMF. 'We are lacking in quality of fibre as well as technical expertise. Moreover, this (Tiruppur) is a cluster where MSMEs thrive; it is not for large-format industries, and the schemes need to be in accordance with such small enterprises. It is difficult for an MSME to invest Rs 100 crore,' he explains.'Most companies in Tiruppur are family-run and lack a corporate structure, limiting their ability to scale like international counterparts. Besides this, factors such as dependence on buying houses play up, as a significant portion of orders comes through intermediaries rather than direct brand collaborations, which reduce control over pricing and market positioning,' says Devroop Dhar, MD & Co-founder of Primus calls and emails sent to both the state and central textile ministries regarding the challenges facing the Tiruppur cluster went unanswered till the time the story was not all is bleak. Schemes such as the Rebate of State and Central Taxes and Levies (RoSCTL) and the Samarth Scheme for skill development have proven beneficial. Bharat TEX 2025, held in the capital in February, also provided more business and networking opportunities for exporters in addition, the recent India-UK free trade agreement has got exporters anticipating brighter times ahead. There's a caveat, though. 'It will help us, but to leverage this opportunity further, we need to get upgraded technologically and financially. More government support can help us double our current turnover in exports to Rs 80,000 crore by 2030,' Natarajan adds.A more specialised focus on MSME units, as per Duraiswamy, can make all the difference for clusters like Tiruppur. 'The government needs to consider having a technology upgradation fund, especially for the smaller units to survive and thrive,' he government initiatives like Samarth can be helpful for addressing skilled labour shortages, Dhar suggests the establishment of specialised training centres at major textile hubs to ensure a steady supply of skilled workers, thereby reducing dependency on untrained labour and improving overall productivity. Additionally, he underscores the pivotal role of the government in aggregating MSMEs, like the support provided to small farmers via farmer producer organisations (FPOs) in the agriculture sector. 'By facilitating the formation of MSME clusters and cooperatives, the government can help small businesses negotiate directly with buyers, ensuring better pricing, market access, and supply chain efficiency.'Experts recommend that the government draw insights from competitors to improve the attractiveness of domestic textiles. Cities like Guangzhou, Shanghai, and Shenzhen are leading due to their advanced infrastructure, proximity to major ports, and established supply chain networks that support their progress.A lot of global capacity in China got built since the government invested in the sector, says Anand Ramanathan, Partner and Leader, Consumer Products & Retail Sector, South Asia, Deloitte India. 'They (China) built facilities at scale. [But,] if you look at Tiruppur, it is still very sub-scale. In China, for instance, one can see specific regions that specialise in manufacturing a particular type of product. Hence, at that scale, cost economics really falls,' he a lot of effort in India is going towards semiconductors, with the government competing for land and giving access to capital to attract semiconductor manufacturing in the country, Ramanathan notes that similar efforts have not been taken towards the apparel and textile industry. 'It has never really happened at that scale for them. This is one area where the sector has not got its act together.'So, what is the way forward, and how can clusters like Tiruppur leverage their unique strengths? Ramanathan states that subsidising manufacturing capacity, upgrading technology and ensuring capital availability can significantly alter the landscape. 'Capital is still very scarce (here). Globally, lower interest rate regimes like Japan have credit available aplenty. We need to think about how to replicate some of that, especially in manufacturing, given our scarcity,' Ramanathan government has set an ambitious target of $100 billion for textile export by 2030, up from $36.6 billion in FY25. Tiruppur, as the largest textile cluster in the country, has a bigger role to play in it. As TEA's Duraiswamy puts it, 'This is the right time for India. In the next 20 years, we can grow the textile industry across the globe.' However, without the government's help, this is not at all possible,' he by Garima Bora.
India Today
20-05-2025
- Business
- India Today
Explained: How Bangladesh is hurting itself by curbing Indian exports
India's decision to restrict imports from Bangladesh through land ports has drawn sharp attention, but according to a trade expert, it's not a provocation. It's a measured response to Dhaka's growing list of curbs on Indian an interview with Business Today, Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said Bangladesh's restrictive trade policies are not only straining bilateral ties, but also undermining its own economic calls India's move a 'teaser'—a signal rather than a full-scale retaliation.'INFLICTING DAMAGE ON THEMSELVES'Highlighting Bangladesh's import restrictions on Indian staples like yarn and rice, alongside increased inspection scrutiny at its borders, Srivastava said, 'Bangladesh is inflicting damage on themselves. They cannot do anything to India."India's decision affects over $770 million worth of imports, roughly about 42% of all goods shipped from Bangladesh. Ready-made garments alone made up $660 million last year. Those will now only be allowed through Kolkata and Nhava Sheva ports, effectively shutting land routes via the Northeast.'These are big brands—H&M, Zara. They make in Bangladesh and export worldwide. Now, they can't use Indian land ports. Everything must come by sea,' Srivastava Srivastava said Bangladesh's increasingly hostile trade posture is rooted in political rather than economic was diversifying beyond garments into sectors like leather. But since the last power shake-up, religious elements have taken over. They've taken a hardline stance against India,' he said. 'Without any provocation, they started blocking Indian goods—rice, yarn, even FMCG.'India, instead of retaliating with bans, opted for a soft signal: nothing is blocked, but key categories must now use more expensive and slower sea routes. 'That's the teaser,' Srivastava said. "We haven't blocked their goods. We've just changed the entry point.'Srivastava noted that Bangladesh's recent graduation from Least Developed Country (LDC) status means it can no longer expect tariff-free access by default. 'India had given them zero-duty access under LDC norms. That needs to be reviewed now, just like Europe and the US are doing.''They are under serious pressure. The LDC graduation means they lose access, and their own policies are making things worse. They're damaging themselves,' he speculation that Chinese goods are being routed into India via Bangladesh, Srivastava downplayed the risk.'There's no large-scale trans-shipment. Legally, it's not allowed. Maybe at a small scale. But mainly, they import fabric from China, make garments, and export,' he TIESRelations between New Delhi and Dhaka have worsened under Prime Minister Muhammad Yunus, especially after his recent remarks in Beijing. Yunus described India's Northeast as 'landlocked' and called Bangladesh the 'guardian of the ocean' in the officials said the trade curbs are designed to ensure fairness. While India allowed Bangladesh full access through land and seaports, Dhaka has blocked Indian exports selectively, especially those headed to the new Indian rules block entry of Bangladeshi plastics, processed foods, furniture, drinks and cotton yarn through land ports in Assam, Tripura, Meghalaya, Mizoram and parts of Bengal. These come weeks after India scrapped a five-year arrangement that let Bangladesh transport goods to third countries via Indian airports and ports.'This is a reciprocal move,' a government official told PTI, pointing to Dhaka's tightening of inspections on Indian goods and selective import Watch
The Star
02-05-2025
- Business
- The Star
Laos, UN launch green and climate finance scheme to drive sustainable development
Deputy Minister of Planning and Investment, Mrs Phonevanh Outhavong, and UN Resident Coordinator in Laos, Bakhodir Burkhanov, displaying signed agreements on the green and climate finance programme. - VT VIENTIANE: The Lao government in partnership with the United Nations system, and with the support of the Luxembourg government, has launched a green and climate finance programme to advance sustainable development and resilience. The launch took place in Vientiane on April 29, with the initiative aimed at steering the country's economic transformation toward sustainability, resilience, and inclusivity. The programme agreement was signed between Deputy Minister of Planning and Investment, Phonevanh Outhavong, and the United Nations Resident Coordinator in Laos, Bakhodir Burkhanov. Phonevanh stressed the importance of aligning national financing strategies with green and climate goals. 'As 2025 marks the final year of our 9th National Socio-Economic Development Plan (NSEDP), we stand at a crucial juncture, transitioning into the 10th NSEDP with anticipated Least Developed Country graduation in 2026 – the inaugural year of our new plan.' 'This joint programme directly supports our graduation aspirations by addressing a critical hurdle – the shift towards green and climate-resilient financing mechanisms that can sustain our development gains while safeguarding our environmental assets,' the deputy minister said. Representing the Luxembourg Embassy to Laos, Thomas Lammar said 'We are proud to support this programme, which not only addresses environmental sustainability but also promotes social inclusion and economic opportunity.' Burkhanov said 'In a world of intertwined crises, we must decouple growth from environmental harm. This joint programme, as our first pooled fund prototype, drives coordinated, strategic action for a greener future.' The programme will be led by the Ministry of Planning and Investment and coordinated by the UN Resident Coordinator. The two-year initiative is rooted in the 9th National Socio-Economic Development Plan Financing Strategy, endorsed by the Prime Minister, and prioritises green and climate finance as a central pillar of Laos's development agenda. The programme harnesses the expertise of the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP), the Food and Agriculture Organisation (FAO), and the United Nations Human Settlements Programme (UN-Habitat), working with key ministries including the Ministry of Planning and Investment, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Agriculture and Forestry, Ministry of Energy and Mines, and the Bank of the Lao PDR. Through this collaboration, Laos' capacity to finance its environmental and climate goals is being strengthened. UNDP is leading efforts in policy development and institutional reform, with a focus on the extractive sector, biodiversity finance, and mainstreaming green finance across ministries. UNEP is advancing sustainable budgeting and fiscal reform to embed environmental sustainability in financial sector policies. FAO is bridging the agriculture-environment-finance nexus, spearheading initiatives such as the national Payment for Environmental Services mechanism, climate-smart agriculture, and sustainable food systems. UN-Habitat is partnering with municipal authorities to drive urban green investments and strengthen local capacity to access green finance. By targeting selected stakeholders, the programme will advance nature-based solutions, climate-smart agriculture, sustainable urban planning, and community resilience. It also aims to strengthen data systems and regulatory frameworks to attract green investment. The scheme supports Laos' Green Growth Strategy, Nationally Determined Contributions, and Least Developed Country graduation plans, reinforcing the country's commitment to economic growth that is environmentally responsible and climate-resilient. - Vientiane Times/ANN
Barnama
25-04-2025
- Business
- Barnama
Top News Headlines In Indonesia, Laos, Myanmar, Singapore, Thailand & Vietnam: April 25, 2025
Danantara's planned entry into the domestic capital market is expected to significantly help stabilise the local stocks and bonds market, especially at times of volatility, but some have also warned that the move could disrupt the sovereign wealth fund's (SWF) focus on its much needed long-term projects for the economy. Leading telecommunications provider Indosat Ooredoo Hutchison has called on Indonesia's mining industry to accelerate the adoption of artificial intelligence (AI) to stay competitive and enhance productivity in line with global trends. LAOS 1. LAOS PREPARING TO EXIT FROM LDC GROUPING -- VIENTIANE TIMES As Laos prepares to graduate from its status as a Least Developed Country (LDC) in 2026, it aims to develop an inclusive and resilient future. The transition will result in the loss of certain trade preferences and access to grants and loans. SHARES MORE DEVELOPMENT ASSISTANCE TO LAO -- VIENTIANE TIMES The United Kingdom (UK) continues its support of Laos' development as both nations mark 70 years of diplomatic ties. Some areas of interest include handling climate change, enhancing bus transport networks and funding the removal of unexploded ordnance devices. MYANMAR 1. NEW AIRPORT TAX FOR FLIGHTS AND PASSENGERS -- THE GLOBAL NEW LIGHT OF MYANMAR All passengers departing from Yangon, Nay Pyi Taw and Mandalay airports must pay a new airport tax starting May 12, 2025. Overseas flights need to pay RM109 (US$25) and RM8.75 (US$2) for foreigners. 2. HUMAN-ELEPHANT CONFLICT DECLINES -- THE GLOBAL NEW LIGHT OF MYANMAR Farmers in several townships are enjoying a bountiful harvest this season as elephants from the Bago mountains have avoided paddy fields. During the hot season, the elephants usually search for water and eat the paddy in nearby villages, leading to human-elephant conflict. SINGAPORE INFLAME SENSITIVE ISSUES OR USE DOMESTIC POLITICS TO DIVIDE S'PORE: PM WONG AT FIRST PAP RALLY -- THE STRAITS TIMES Do not inflame sensitive issues or use domestic politics to divide Singaporeans, Prime Minister Lawrence Wong said to opposition parties in his first rally speech as head of government. 2,GE2025: SINGAPORE NEEDS GOOD TEAM TO STAY AHEAD, TACKLING LIVING COST AND JOB CONCERNS 'MOST URGENT PRIORITY', SAYS PM WONG -- CNA The "first and most urgent priority" for the People's Action Party (PAP) is to address cost of living and job concerns, and Singapore needs a good team to stay ahead, said Prime Minister Lawrence Wong on Thursday (Apr 24) at his first rally in this General Election. THAILAND 1. DON'T PANIC: THAILAND TO CONDUCT EMERGENCY ALERT TESTS VIA CELL BROADCAST NEXT MONTH -- THE NATION Residents in selected test areas will receive a test alert on their mobile phones, including both sound and on-screen message notifications. 2. ASEAN SEEKS TO STRENGTHEN US ECONOMIC TIES AMID TARIFFS -- BANGKOK POST Asean has reiterated its commitment to multilateral trade principles and does not plan to retaliate against US tariff actions. VIETNAM 1. CLEAN ENERGY CAPTURES REGIONAL MEETING -- VIETNAM NEWS During the Vietnam–China–ASEAN international energy forum held in Hanoi on Thursday, clean energy cooperation was the core of the discussion. Industry leaders and policymakers exchanged ideas to explore new technologies and strengthen cooperation toward sustainable energy development. TARGETS RM22 BILLION BILATERAL TRADE -- VIETNAM NEWS Top Vietnam and Lao leaders agreed to revitalise their economic partnership and raise bilateral trade to RM22 billion (US$5 billion) in the coming years. Cooperation will include developing the economy, infrastructure, financial, and tourism connectivity to support growth. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
