GOVT. EXPECTS STEEP JUMP IN EMPLOYMENT IN TEXTILE.

The estimated employment in the textile industry is expected to increase from 33.17 million persons as on 31.3.2006 to 45.19 million persons by the terminal year of the Eleventh Plan. Employment in the allied industries is expected to increase from 54.85 million persons to 60.20 million persons, as per the report of the Working Group on Textile and Jute Industry for the Eleventh Five Year Plan (2007-12) informed Mr. E.V.K.S. Elangovan, Hon’ble Minister of State for Textiles.

Consequently, the total employment in the textile sector including allied industries is projected to increase to 105.39 million persons in 2011-12 from the present level of 88.02 million persons, resulting in a net addition of 17.37 million persons.

The vision projected by the textile industry envisages that cloth production would grow at 12 % and the total turnover at 16 % per annum during the Eleventh Five Year Plan and reach a level of US $ 115 billion by the terminal year of the Eleventh Plan.

In order to achieve the projected level of growth, it is necessary to address the various handicaps of the manufacturing sector such as deficiencies in transport infrastructure, inadequate power supply, inflexible labour laws etc.

In addition to making concerted efforts to address such handicaps, the Government is implementing specific schemes such as Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP) etc. with a view to modernizing the textile industry and enabling the industry to benefit from economies of scale and integrated production.

The Marketing Support and Services Scheme is being implemented during the 11th Plan Period with the aim to provide direct marketing outlets to the craftpersons for participation in various marketing events / melas for augmenting their sales.

He further stated that the scheme has three broad components i.e. Domestic Marketing, International Marketing and Publicity. A sum of Rs. 97.19 lakhs have been sanctioned to various implementing agencies under the scheme to the State of Orissa during 2007-08. In addition 6 exhibitions has been sanctioned to various agencies.

The Minister further said that the aim of the scheme is to provide more marketing outlets to craftpersons which indirectly create more employment channels and not to provide full time job.

TURKEY OFFERS TO CONSIDER FREE TRADE AGREEMENT

Turkey has offered to consider a free trade agreement with India as it plans to increase bilateral trade to $10 billion annually by 2012, Turkish minister for foreign trade Kursad Tuzmen has said. “We would like to have a free trade agreement with India... Our trade with India is currently around $2.7 billion annually and we want to raise it to $10 billion by 2012,” Mr Tuzmen told a meeting of industrialists at the World Trade Centre here. He also said there should be more flights between India and Turkey in the face of growing bilateral economic cooperation.

CONTINUATION OF SCHEME FOR INTEGRATED TEXTILES PARK IN 11TH FIVE YEAR PLAN.

Government of India have decided to continue the Scheme for Integrate Textiles Park (SITP) in the 11th Five year Plan. Ten (10) Textiles Park projects will be approved at the first instance. Primary objective of the SITP is to facilitate setting up of textiles units with desired infrastructure. Industry Associations / Group of Entrepreneurs would be the main promoters of the Textiles Park by forming
a Special Purpose Vehicle (SPV) for implementation / management of the project. Ministry of Textiles has engaged eight (8) Project Management Consultants (PMCs) who will help the promoters in formation of SPV, preparation of Detailed Project Reports, etc., for which Ministry of Textiles will pay fee to the PMCs. Detailed guidelines of the scheme, inter alia including the objective of the scheme, salient features of the scheme, level of assistance, role of SPV, PMC, State Government etc. And list of the empanelled MCs are available on the website of the Ministry of Textiles at www.texmin.nic.in or can be obtained from the SITP Cell, Ministry of Textiles, Udyog Bhawan, New Delhi -11, Tel.: 011-23063544

(Msg.being circulated to Council’s members in response to MOT letter no. 19/39/2006-SITP Cell dated 17th March 2008)

TIPS FOR INTERNATIONAL PASSENGERS

Keep 2-3 legible photocopies of passport, visa, credit cards in your coat pocket and check-in bag.

Have a back-up of your mobile phone numbers

Leave photocopies of your credit card with your office

Trade bodies/organisations can be of great help—carry their contact numbers.

Carry the contact number/address of the Indian Embassy/consulate of the country you are visiting. Preferably use a combination lock for your check-in bag. Key locks mean you will have to break the lock if the keys get stolen.

Always check in your bag under your name. If any other passenger of your group checks in your bag, you will find it hard to retrieve it

In case of a passport theft, always file a complaint with the airport officials and the police and keep photocopies of these.

The Indian embassy gives you an attested photocopy of the police/airport complaint that you have submitted to them. Take 2-3 copies of these as you may have to furnish these to immigration authorities in India at the time of arrival.

Check to see that the appropriate word, passport “stolen’’ or “lost’’ is mentioned in the emergency certificate.

TEXTILE EXPORTS TO US SPARKLE,BEAT RUPEE BLUES

Despite rupee appreciation, Indian textile and Apparel exports to the US for 2007 showed a marginal increase in value terms over the previous year, even as unit value realisation came down. The US comprises 25-30% of Indian textile and apparel exports and so growth in exports to the US means exporters may have been able to successfully handle the rupee appreciation.

The steep rupee appreciation of last year had hit textile exporters earnings in rupee terms and had blunted their competitive edge in international market. As the crisis deepened many exporters were finding it tough to garner new business contracts, leading to decline in textile export figures in several months of the last year. The scene, however, seems to have improved as the year closed.

According to the latest US government data, US textile import in value terms increased 3.4% in 2007 over the previous year, while volumes increased only 1.8%, clearly showing that the per unit prices paid by US importers in dollar terms were higher in 2007 compared to the previous year. But for Indian exporters per unit realisation actually went down, as is evident in its growth figures for
textile exports in value and volume terms.

Indian textile and apparel exports to the US rose in value terms to $5,103 million in 2007, up 1.5% over previous year. The volumes, however, were marginally better. It went up 2.6% to 2,722 sq.mtr equivalent (SME).

“Textile and apparel exporters cut prices to retain their market share. Therefore, the unit value realisation for exporters came down even as they managed to marginally increase their export in value terms,” says Confederation of Indian Textile Industry secretary general DK Nair.

In the apparel segment, however, Indian exports to US increased in volume (from 840 SME to 867SME), but declined in value (from $3,186 million to $3,169 million). “There is more competition in the apparel category compared to textile. We face stiff competition from low-cost producers such as China and Bangladesh,” explains Mr Nair.

OKHLA GARMENT & TEXTILE CLUSTER TO HOST 'RMG & HOME TEXTILE' CONFERENCE IN SEPTEMBER,2008.

In today’s Competitive world “Leading Edge’ is required to create a niche in all the areas. From fiber production to it’s processing into yarn and fabric, value addition through finishing and the product development, all need new ideas to sustain. To keep the stake holders abreast with the latest happenings Okhla Garment & Textile Cluster (OGTC) organizes International Conference on Apparel and Home Textiles (ICAHT) every year.

The 3rd International Conference on Apparel and Home Textiles (ICAHT – 07) was organized in New Delhi last year, where about 305 participants attended the conference. This year the 4th International Conference on Apparel and Home Textiles ICAHT – 2008 will be held on 26th-27th September, 2008 at India Habitat Center, New Delhi, India. The theme of the conference is “LEADING EDGE’. The focus areas are: Lean Manufacturing and Global Competitiveness through:

• Management Innovation
  
• Design Development
  
• Research & Development
  
• Corporate Responsibilities
  
• Innovative Marketing
  
• Global Standards of Productivity
  
• Skill- Up-Gradation
  
• Creating an Open and Non-Retaliatory Workplace
  
• Branding
  
• Trends
  
• Retailing

The OTGC has invited paper for the forthcoming conference.

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Silk Exports
Export of silk
ITEM	December, 2007	April-December, 2007	December, 2006	April-December,2006
Natural Silk Yarn + Fabrics + Made-ups	112.71	112.50	167.09	1498.00
Readymade Garments	90.62	772.11	109.30	838.78
Carpet	2.63	33.76	39.17	110.97
Silk Waste	0.30	8.57	1.43	16.11
Total	206.26 -35.0	1926.94 -21.8	316.99	2463.86

$ = 39 April – December, 2007 $ 494 million

$ = 40 April-December, 2006 $ 616 million

Decline - 20 %

I-T HOLIDAY FOR EOUS EXTENDED FOR A YEAR

Giving in to industry demand, the government announced one-year extension of income tax holiday for Export-Oriented Units (EOUs) under section 10B of the income Tax Act. RIL is expected to be one of the biggest beneficiaries of this move as if has converted its retinery into EOU only last fiscal. The government, which had remained silent on the fate of the scheme in the budget, will now move an amendment in the parliament. Though the government has cleared the air on extension of EOUs, Software Technology Park Schemes (STPs,) which enjoys similar tax holiday, remain on tenterhooks. It's estimated that government has foregone revenues worth Rs 23,806 crore on account of tax sops to EOUs and STPs. With the extension of the scheme by another year, 100% EOUs would enjoy income tax benefits for another year, fiscal 2009-10. The exporting industries, which have been hit by rising input costs and an appreciating rupee, had been demanding the extension of the scheme for a while. Various high-level government committee, had recommended extension of the tax holiday. The V. Krishnamurthy Committee, set up by the PM to suggest ways to help exporters cope with rising rupee, had recommended the sunset clause be pushed back by a year. Exports from EOUs were approximately Rs 55,500 crore in 2006-07. Interestingly, a Finance Ministry - sponsored study by economic think-tank Icrier also favoured extension to EOUs to boost exports and job creation. However, the scheme lost some of its charm during last budget when minimum alternate tax was extended to EOUs'.

STATE LEVIES LIKELY TO FLOW TO EXPORTERS

The 13th finance commission may provide a solution to the long-pending issue of reimbursement of state-level levies paid on inputs used for exports. The Centre is looking at the option of providing reimbursement of State taxes from its kitty and then deducting it from

the central allocation to states. The finance commission, headed by Shri Vijay Kelkar, has asked the Commerce department to submit by May draft proposal, based on which it could take a decision.

Although the Ministry of Commerce and industry has circulated a Cabinet note on two options that could be applied for reimbursing State Taxes, a decision may not be taken early as the issue will be looked into by the finance commission, sources said.

The Cabinet note provides the option of either Centre reimbursing the state taxes on inputs used by exporters or the state government providing refunds.

The empowered committee of state Finance Ministers, which was looking into the refund mechanism, has also not been able to come out with a suitable suggestion. However, with the government now looking at the finance commission for issuing a directive on the issue, it many not be necessary for the commerce department to push the Cabinet note. Trade has been included for the first time in the terms of reference of the finance commission as the government was keen that a solution to the problem of reimbursement of state taxes should be worked out. "A directive from the finance commission on the issue will be final solution to the problem."

"The department is proposing that the Centre should reimburse the taxes and then deduct the amount from the Centre's allocation to State."

Source said there is a general acceptance of the fact that state level input duties paid by exporters like octroi, mandi tax, sales tax on petroleum products, electricity tax and municipal cess should be refunded, This adds up to a sizeable amount and is an estimated 6% of the FoB value of exports.

While the Centre doesn't want to reimburse the state taxes from its own funds as it could encourage states to impose more taxes, the states have been reluctant to shell out the amount from their coffers.

EXIM POLICY ANNUAL SUPPLEMENT HIGHLIGHTS 2008-09

The foreign trade policy has been announced by the Government. As you are aware the policy, in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position. Some of the relevant features of the new Foreign Trade Policy are reproduced below for the benefit of our members.

• Services rendered abroad and charged on export from India to be exempted from service tax. At least Service Tax on commission payable to the foreign agents will not be payable anymore under any circumstances.

• The limit for duty free import of samples increased to Rs. 1,00,000 from Rs. 75,000.

• Encouragement to agro export through VKUY. 'Vishesh Krishi and Gram Udoyg Yojana' (VKGUY) is being expanded. Although we have recommended silk to come under VKUY it has not been included so far. The office of the Ministry of Textiles have also recommended our case favourably and we hope it is included in VKUY in the near future.

• 16 new countries including 10 former CIS countries are being included under the Focus Market Scheme (FMS).

• DEPB (Duty Entitlement Pass Book) Scheme stands extended for another year upto May 2009. DEPB will be replaced by new scheme in consultation with the exporters.

• Import of spares, tools, spare refractories for all the existing imported plant and machinery would also be now allowed under Export Promotion Capital Goods (EPCG) Scheme.

• Income tax benefit to 100% EOUs has been extended by Government.

• Refund of service tax on almost all the services which are directly relatable to export production and supply.
  

BAMBOO-BASED BLOUSES & BLANKETS DEMAND SURGES OVERSEAS

Rising interest in "sustainable" fabrics is fostering a bamboo bloom, in which bamboo-based fabrics are hitting the markets as a leading eco-friendly textile.

Chemists in Colorado now are reporting solutions to two major problems with bamboo fabrics that may speed adoption of this amazing plant- which grows like Jack's beanstalk without special care - in garments and other consumer products.

Reporting at the 235th national meting of the American Chemical Society, Subhash Appidi and Ajoy Sarkar, Ph.D., from Colorado State University have discovered a way making bamboo fabrics that is resistant to the sun's damaging ultravoilet (UV) radiation and has anti-bacterial properties according to a report posted on sciencedaily.com.

Widely available in Japan, China, India and other countries, bamboo fabric is soft, durable and elastic. It hangs as gracefully as silk, and has an attractive, lustrous sheen. A leading option in the so-called "ethically produced" clothing market, bamboo is one of the world's fastest growing plants, reaching maturity in about 3-4 years, compared to 25 to 70 years for commercial tree species in the U.S.

"Bamboo is environmentally friendly, says Appidi. " Pesticides and other agent are necessary to grow most other natural fibres- there is nothing like that in bamboo production."

But despite bamboo's promise as an environmentally friendly fibre, Appidi says untreated bamboo fabrics has plenty of room for improvement. Raw bamboo fabric lets almost all damaging UV radiation pass through and reach the skin. And while many tout bamboo's inherent anti-bacterial properties, Appidi found that untreated bamboo fabric did not live up to antimicrobial expectations.

"All cellulose fibres allow more moisture to leak in and provide more food for bacteria to eat. That's why bacteria grow more on natural fibres rather than synthetics fibres,"says Appidi. The resulting bacterial blooms can lead to unpleasant odors and unsanitary clothing.

For Appidi, creating bacteria-free bamboo garments is a necessity. His goal is to create clothes for use in the medical environment that ate nearly 100 percent antibacterial and UV resistant. Appidi increased the UV-protecting abilities of fabrics by coloring pieces of commercially - available bamboo cloth in a dye laced with UV absorbing chemicals, after finding the optimal concentration of
absorbing chemicles, he tested UV protection levels.

To improve on the intrinsic antibacterial properties of bamboo, Appidi treated pieces of commercially purchased bamboo fabrics with Tinosan - "one of the better antibacterial agents on the market right now," according to the researcher.

His result showed a 75-80 percent bacterial reduction, a significant improvement over untreated bamboo fabric. There was also profound increase in UV protection, he said. In terms of "ultraviolet protection factor" (UPF), any value of over 50 is deemed safe against UV rays. Appidi said his treated fabrics almost reached 56.

More research may get Appidi's bamboo fabric in hospitals - and eventually store shelves. He is investigating other antibacterial agents that may help him attain a 99 percent bacterial reduction bamboo Fabric.