Tuesday 26 August 2014

Development Commissioner for Handlooms, Ministry of Textiles, Government of India joins hands with Flipkart India Pvt. Ltd. to Provide an online marketing platform & market intelligence to boost Indian handloom Weavers


Ministry of Textiles today announced that Ministry through DC (Handlooms) has signed a Memorandum of Understanding (MoU) with Flipkart India Pvt. Ltd. to provide online marketing platform to handloom weavers to boost the handloom sector, empower the weavers and boost manufacturing in the country.

Through this exclusive agreement, Flipkart will provide weavers in India online marketing platform, infrastructural support in data analytics and customer acquisition to help them get remunerative prices for their products and scale up their business. 

Ministry of Textiles, Government of India, through the office of the Development Commissioner for Handlooms, is continuously striving to develop a strong, competitive and vibrant handloom sector to provide sustainable employment to handloom weavers. The Ministry had adopted focused, flexible and holistic approach to promote and facilitate the continuous overall growth and development of the handloom industry through formulating, implementing, monitoring and reviewing of handloom policies, programmes and schemes; to support the handloom sector at large in upgrading skill knowledge, market infrastructure, living condition etc. 

For marketing support, the Ministry of Textiles has taken many initiatives from time to time such as organizations of domestic marketing events, participation in international fairs and buyer-seller meets etc. However, in the present scenario of online marketing and net savvy consumers, it has been felt need to provide online marketing platform to handloom weavers so that exquisite handloom products of remote village is made available to discerning buyers.

With this objective, Ministry of Textiles, through Development Commissioner for handlooms signed MOU with Flipkart, a leading online market service provider. 

This kind of a coordinated effort has been planned and executed for the first time with Flipkart for handloom weavers which will bridge the missing linkages of market intelligence, market access and logistics and help the Indian weavers in getting remunerative prices for their products.” Flipkart will provide online marketplace for sale of the products of the weavers / master craftsmen/ national awardees/ state level awardees and the others as advised by Development Commissioner for Handlooms. Towards this end, they will go to the doorsteps of the above said since they do not have the brand, financial wherewithal to have a store leave aside in a town but not even in their village, no wherewithal to travel to market their products. Flipkart or their business partners will also have a collection centers to collect their products.

The weavers will sell their products under their brand name and evolve as an entrepreneur selling his products directly to buyers across the country without stepping out of their workplace. 

Flipkart, with its access to the largest customer base in the country, aims to help weavers make optimal use of the available data to guide entrepreneurs and artisans on areas such as deciding on the right selling price, payment automation, proper packaging, transportation, brand building etc.

The DATA analytics and market intelligence provided by Flipkart will help the weavers focus only on producing better saleable product ranges. This in turn will help them plan their production and inventory and expand their business, thus revolutionizing manufacturing in rural India and encourage entrepreneurship. 

This partnership will connect the artisans directly to the buyer and the hand holding by Flipkart in guiding, packaging, collecting and delivering to the buyer will motivate the artisans in rural India. North East has skilled weavers with rich traditional motifs and designs, but due to the lack of market linkages they are not able to exploit the market potential. Similarly, Paithani and Himroo weaves from Maharashtra have tremendous value but are a dying art. Flipkart's ABHIYAAN Flipkart – Kaarigar ke dwar to connect the weavers to the buyers across the country will also help arrest this dying art and change the face of rural India. This initiative will help rural weavers earn suitable remuneration for their products without having to step out of their homes. Thus the children of these weavers will be motivated to learn and continue the art and stay back in the rural areas instead of migrating to the urban areas for jobs, thereby keeping alive the rich tradition of Indian art. 

In this unique and promising initiative by the Ministry of Textiles, Development Commissioner (Handlooms) and Flipkart have joined hands to provide marketing support to handloom weavers of rural areas. The MOU was signed today in the presence of the Hon’ble Minister of Textiles, Sh. Santosh Kumar Gangwar, Secretary (Textiles), Govt. of India, Sh. S. K Panda, Development Commissioner (Handlooms), Sh. Dinesh Kumar, Sh. Joy Bandekar, President Corporate Affairs, Sh. Ankit Nagori, V.P., Marketplace, Flipkart and other officials of Ministry of Textiles on 25th August at 3:00 PM. The MOU was signed by Sh. Dinesh Kumar, Development Commissioner (Handlooms) & Sh. Ankit Nagori, V.P., Marketplace, Flipkart.

The Hon’ble Minister for Textiles while speaking on the occasion congratulated the heads all the organizations and maintained that they must work tirelessly for the upliftment of weavers and ensure the success of the venture. He mentioned that periodic review of the sales and progress of the weavers in the targeted clusters should be carried out. Hon’ble Minister emphasized that the focus of this association should be to help weavers & weaver entrepreneurs to produce products in tune with the buyer requirements and grow significantly so that they may become manufacturers not only at a local but also at a national level. 

Saturday 16 August 2014

Textile Export to USA

Textile Export to USA
The details regarding share of India and China in the imports by United States of America (USA) in respect of special purpose fabric and non-woven fabrics for the year Calendar years 2012 & 2013 are given below:

         (i)                     SPECIAL PURPOSE FABRIC

2012
2013
Value in Million US$,
% share
Value in Million US$,
% share
CHINA
259.076
21.04
281.434
22.20
INDIA
17.251
1.40
17.70
1.40

Total import of special purpose fabric by US was US$ 1231.25 million in 2012 and                            US$ 1267.68 million in 2013.



       (ii)         NON-WOVEN FABRICS

2012
2013
Value in Million US$,
% share
Value in Million US$,
% share
CHINA
173.204
17.08
201.918
18.02
INDIA
35.192
3.47
33.210
2.96
The total import of non-woven fabrics by US in 2012 was US$ 1013.91 million and in 2013, they were US$ 1120.64 million.

(Source: Office of Textiles and Apparel (OTEXA), USA  http://otexa.ita.doc.gov/)

Ministry of Textiles, Government of India, is promoting & encouraging the growth & development of Technical Textiles in India and exports of technical textiles through various schemes & policy initiatives and the details are attached as Annex-I.

The Ministry of Textiles has been encouraging Research and Development in the textiles sector in general and in the technical textiles segments in particular. As part of this effort the Ministry operates an R&D scheme open to various Govt. approved R&D institutions like IITs, Textiles Research Associations, Govt. aided institutions, recognized engineering colleges etc. where funding under the scheme ranging from 75% to 100% of the approved R&D projects is provided with focus on industry relevance of R&D projects and commercial adoption of the outcomes. Further, under the Technology Mission on Technical Textiles (TMTT) 8 Centres of Excellence (CoEs) for different technical textiles segments have been created, who besides being one stop shop for that particular technical textile segment, engage in Research and Development, incubation, prototype development etc. The CoEs have also entered into collaboration with several internationally reputed Overseas R&D institutions and track international developments and trends in their segments. TMTT specifically provides for contract research where user industry can sponsor research through eligible reputed R&D institutions and avail upto 60% of the approved R&D project cost under the mission.
Annex-I

Details for promoting & encouraging the growth & development of Technical Textiles in India and exports of technical textiles through various schemes & policy initiatives.

I.  Technology Mission on Technical Textiles (TMTT):

Government is promoting and encouraging the growth and development of Technical Textiles in India and exports of technical textiles through various schemes and policy initiatives.  Ministry has launchedTechnology Mission on Technical Textiles (TMTT) with two mini-missions for a period of five years (from 2010-11 to 2011-12 in the 11th five year plan and 2012-13 to 2014-15 in 12th five year plan) with a total fund outlay of Rs.200 crore during December 2010.  The objective of TMTT is to promote technical textiles by ways of developing world class testing facilities at eight Centres of Excellence, promoting indigenous development of prototypes, providing support for domestic & export market development, encouraging contract research, etc.

II.        Subsidy on Machinery, Infrastructure and Policy  Initiatives:

·        Major machinery for manufacture of technical textiles has been covered under Revised Restructured Technology Up gradation Fund Scheme (RRTUFS) for 5% Interest Reimbursement and 10% capital subsidy in addition to 5% interest reimbursement is also provided to the specified technical textile machinery under RRTUFS. 
·        Under the Scheme for Integrated Textile Parks (SITP), the Government provides assistance for creation of infrastructure in the parks to the extent of 40% limited to Rs.40 crore. Technical textile units can also avail benefits under this Scheme 
·        The major machinery for production of technical textiles is covered in the concessional customs duty list of 5%.
·        Specified technical textile products are covered under Focus Product Scheme. Under this scheme, exports of these products are entitled for duty credit scrip equivalent to 2% of FOB value of exports.

III.       Measures taken by Government to increase exports of Indian textiles and clothing:
i)        Government implements several export promotion measures including incentives under Focus Market Scheme and Focus Product Scheme; enhancing the coverage of Market Linked Focus Product Scheme for textile products to increase India’s share in various countries. Focus Market Scheme (FMS) offsets high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these markets.  Further, to incentivise export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products, Govt. implements Focus Product Scheme.  In addition, Market Linked Focus Product Scheme (MLFPS) incentivises export of products that have high employment intensity in rural and semi urban areas, to offset infrastructure inefficiencies and other associated costs involved in marketing of these products.
ii)       Financial Assistance is provided for export promotion activities on focus countries and focus product countries under Market Access Initiative (MAI) Scheme.
iii)     Financial Assistance is provided under Market Development Assistance (MDA) Scheme for a range of export promotion activities implemented by Textiles Export Promotion Councils on the basis of annual action plan.
iv)     2% Interest Subvention Scheme on rupee export credit was available to certain specific export sectors including Handicrafts, Carpets, Handloom and Readymade Garments up to 31st March, 2014.
v)      Duty Drawback is the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties paid by his suppliers.
vi)     The Export Promotion Capital Goods (EPCG) scheme is one of the several export-promotion initiatives launched by the government in the early '90s. The basic purpose of the scheme is to allow exporters to import machinery and equipment at affordable prices so that they can produce quality products for the export market.
vii)   Guarantees to Banks: Packing Credit Guarantee:
Timely and adequate credit facilities at the pre-shipment stage are essential for exporters to realize their full export potential. The Packing Credit Guarantee of ECGC helps the exporter to obtain better and adequate facilities from their bankers. The Guarantees assure the banks that, in the event of an exporter failing to discharge his liabilities to the bank, ECGC would make good a major portion of the bank's loss.
viii)  Advance License: Advance Licence Scheme allows duty free import of inputs which are physically incorporated in export product with normal allowance of wastage on the basis of SION (Standard Input Output Norms).  It has export obligation attached to it which should be fulfilled in 18 month from the date of release of advance licence.
ix)     Increase in entitlement for import of trimmings, embellishments and other specified items - To encourage exports of readymade garments it has been announced in Union Budget 2014-15 to increase the duty free entitlement of garment exporters for duty-free import of trimmings, embellishments and other specified items from 3% to 5% of the value of their exports.

Tuesday 12 August 2014

Indian Textile Facing Competition From Foreign Textile Industry

Textiles industry is facing still competition from foreign textile industry including our neighbouring countries especially from Bangladesh, Pakistan and Sri Lanka as these countries are taking advantage of unilateral tariff preference scheme granted to developing countries.  India, which was also a beneficiary of the EU GSP has been graduated out of the GSP from 01.01.2014 for textiles and some other products. The graduation out of countries is done by the EU based on the criterion of trade share. Hence Indian exporters of textiles pay the normal customs duty of upto 8% on textiles products being sent to EU from 01.01.2014 onwards. Sri Lanka is covered under a preference scheme of the EU namely GSP. Bangladesh and Pakistan are covered under other unilateral preference scheme of the EU namely the “Everything but Arms (EBA)” and the “GSP Plus” respectively. Hence, they have zero duty access for textiles products into the EU.   China’s manufacturing base in Textiles is larger than India both in terms of yarn and fabric providing opportunities for higher garment manufacturing and exports. China has large and strong Infrastructure to meet global demand of Textiles and Clothing.
The Government has undertaken research and studies on various facets of textile industry including estimating the domestic household market size of textiles, export competitiveness analysis of the Indian textiles in different export destinations of the world.
The details of various measures taken by the Government to improve textile export and competitiveness of Indian textile industry and in order to explore new markets for textile exports along with steps taken by Government include:-

i)         Government has implements several export promotion measures including incentives under Focus Market Scheme and Focus Product Scheme; enhancing the coverage of Market Linked Focus Product Scheme for textile products to increase India’s share in various countries. Focus Market Scheme (FMS) offsets high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these markets.  Further, to incentivise export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products, Govt. implements Focus Product Scheme.  In addition, Market Linked Focus product scheme (MLFPS) incentivises export of products that have high employment intensity in rural and semi urban areas, to offset infrastructure inefficiencies and other associated costs involved in marketing of these products.

ii)      Financial Assistance is being provided for export promotion activities on focus countries and focus product countries under Market Access Initiative (MAI) Scheme.

iii)  Financial Assistance is provided under Market Development Assistance (MDA) Scheme for a range of export promotion activities implemented by Textiles Export Promotion Councils on the basis of annual action plan.

iv)   2% Interest Subvention Scheme on rupee export credit was available to certain specific export sectors including Handicrafts, Carpets, Handloom and Readymade Garments up to 31st March, 2014.

v)      Duty Drawback Scheme: Duty Drawback is the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties paid by his suppliers.

vi)          The Export Promotion Capital Goods (EPCG) scheme is one of the several export-promotion initiatives launched by the government in the early '90s. The basic purpose of the scheme is to allow exporters to import machinery and equipment at affordable prices so that they can produce quality products for the export market.

vii)    Guarantees to Banks: Packing Credit Guarantee: Timely and adequate credit facilities at the pre-shipment stage are essential for exporters to realize their full export potential. The Packing Credit Guarantee of ECGC helps the exporter to obtain better and adequate facilities from their bankers. The Guarantees assure the banks that, in the event of an exporter failing to discharge his liabilities to the bank, ECGC would make good a major portion of the bank's loss.

viii)          Advance License: Advance Licence Scheme allows duty free import of inputs which are physically incorporated in export product with normal allowance of wastage on the basis of SION (Standard Input Output Norms).  It has export obligation attached to it which should be fulfilled in 18 month from the date of release of advance licence.

ix)   Increase in entitlement for import of trimmings, embellishments and other specified items - To encourage exports of readymade garments it has been announced in Union Budget 2014-15 to increase the duty free entitlement of garment exporters for duty-free import of trimmings, embellishments and other specified items from 3% to 5% of the value of their exports.


Ref: http://pib.nic.in/newsite/PrintRelease.aspx?relid=108330



India as Source Country for Global Apparel Importers

India is sixth largest supplier in world with 3.7% share in global readymade garment exports as per World Trade Integrated Solutions database of 2013 while Bangladesh and Cambodia are 2nd and 14th largest readymade garment supplier in global market respectively. 

As per extant FDI policy in Multi-Brand Retail Trade (MBRT) Policy stipulates that ‘At least 30% of the value of procurement of manufactured/processed products purchased shall be sourced from Indian micro, small and medium industries, which have a total investment in plant & machinery not exceeding USD 2.00 million. Government has approved a proposal from M/s. Tesco Overseas Investment Ltd. (TESCO), a UK Company to carry out the business of Multi Brand Retail Trading in India. No other application/proposal for investment in Multi Brand Retail Sector has been received in Department of Industrial Policy & Promotion. 


Ref: http://pib.nic.in/newsite/PrintRelease.aspx?relid=108326