10th

June

2023

Cotton and Yarn Futures Cotlook A Index - Cents/lb (Change

ZCE - Daily Data (Change MCX (Change from previous day)
from previous day)
from previous day)
08-06-2023 94.85 (+0.25)
June 2023 58700 (-360)
Cotton 15100 (+240) Aug 2023 59600 (-740)
18-05-2022 167.70
Yarn 21940 (-130)
18-05-2021 88.00

New York Cotton Futures (Cents/lb)

As on 10.06.2023 (Change from
previous day)
July 2023 83.99 (-0.32)

Oct 2023 84.81 (+1.59)

Dec 2023 82.03 (+0.40)

2 CITI-NEWS LETTER

Union Commerce and Industry Minister Shri Piyush Goyal interacts with 15 Ambassadors

NATIONAL from African region for strengthening Trade and Investment ties with India

DGFT offices for investment, trade promotion only, says Piyush Goyal

India eyes high-value products to boost technical textiles sector

Cotton prices expected to stabilise due to 9% hike in MSP

4M mantra: How the Modi government delivers

India can grow at 6.5-7% till 2030 without overheating risk, says CEA V Anantha
Nageswaran

India, UK finish 10th round of free trade agreement talks

Cotton yarn prices steady in south India, fabric buying remains weak

PM GatiShakti’s Network Planning Group recommends road project in Tripura

Southern states to contribute 35% of India’s $7tn economy by 2030

A Candid Conversation With Ms. Priyamvada Bhumkar, MD - Soujanya Colour On

Creating Synergy In Corporate And Environmental Goals

Over 1,000 workers laid off at Kerala govt textile mills, financial crunch tightens grip
-------------------- ------------------------------------------------------------------------

GLOBAL
Transition to Industry 5.0 for textiles depends on stakeholder support

From workers' rights to ending fast fashion: The EU is cracking down on fashion’s
malpractices

A fifth of European textile waste could become new garments – but how do we get there?

US' textiles & apparel imports drop 22% to $33.7 bn in Jan-Apr 2023

VDMA – Transforming the World of Textiles: efficient – digital – circular

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3 CITI-NEWS LETTER

NATIONAL:
Union Commerce and Industry Minister Shri Piyush Goyal interacts with 15
Ambassadors from African region for strengthening Trade and Investment
ties with India

(Source: Live Mint, June 09, 2023)

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public
Distribution and Textiles, Shri Piyush Goyal hosted fifteen Ambassadors from various
countries of the Africa region yesterday in New Delhi. During the interaction with the
Ambassadors, the Minister said that India and Africa share remarkable friendship across
decades and have the potential of becoming the powerhouse of the future. The event
aimed at fostering closer economic cooperation, enhancing trade relations and exploring
areas of collaboration between India and Africa.

Shri Piyush Goyal welcomed the Ambassadors and highlighted the significant value of
India-Africa relationship. The Minister emphasized the commitment of the Prime
Minister, Shri Narendra Modi towards making Africa a top priority and deepening India’s
engagement with Africa on a sustained and regular way. He encouraged the heads of
missions to work in solidarity and extended a hand of friendship for the growth of the
African and Indian sub-continent.

The Minister reiterated that this is the beginning of a new engagement and reaffirmed
that India would act as a trusted partner to expand trade, commerce, business, investment
and opportunities between the two nations. He said India is open to FTA negotiations
bilaterally or individually with African countries or Africa as a whole.

The event witnessed the participation of 15 ambassadors from key African nations namely
Algeria, Botswana, Egypt, Ghana, Republic of Guinea, Kenya, Malawi, Mozambique,
Morocco, Rwanda, South Africa, Tanzania, Togo, Uganda and Zimbabwe. It provided a
unique platform for diplomatic representatives to engage in fruitful discussions,
strengthen bilateral ties, and forge new partnerships for mutual growth and development.

India and Africa share a long-standing history and a strong cultural bond. The African
continent presents vast opportunities for Indian businesses, with its rapidly growing
population, emerging middle class, and abundant natural resources. Through increased

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4 CITI-NEWS LETTER

trade and investment, both India and Africa can benefit from each other's strengths and
expertise, fostering inclusive growth and job creation.

In addition to economic aspects, the gathering emphasized on the significance of cultural

exchanges, people-to-people connections, and strategic collaborations between India and
Africa. The event served as a platform to celebrate the rich diversity and heritage of both
regions and strengthen the bonds of friendship.

Home

DGFT offices for investment, trade promotion only, says Piyush Goyal

(Source: Economic Times, June 10, 2023)

Speaking at a Federation of Freight Forwarders Associations in India (FFFAI) event, he

asked the industry to stop practices such as adding non-transparent and miscellaneous
charges to their bills, try and break the queue or avoid quality inspections.

Commerce and industry minister Piyush Goyal Friday said that the Directorate General
of Foreign Trade (DGFT) offices will be only investment promotion and trade facilitation
offices, and not sort out the day-to-day problems of industry.

The industry problems will be addressed through recorded video conferencing. Speaking
at a Federation of Freight Forwarders Associations in India (FFFAI) event, he asked the
industry to stop practices such as adding non-transparent and miscellaneous charges to
their bills, try and break the queue or avoid quality inspections.

He asked the industry to either "participate in this journey of change and reform or leave".
"(We are) gradually moving everything out of the offices of DGFT. Everything will be only
online. I think probably already most things-90 odd percent-are online," he said, adding
that no one should pollute the environment by visiting the DGFT offices.

Home

India eyes high-value products to boost technical textiles sector

(Source: Fashion Network, June 10, 2023)

International benchmarking, deliberations with the industry, and demand assessment are
critical for identifying high value and high-volume potential products to catalyse research

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5 CITI-NEWS LETTER

and innovation in technical textiles in India, said Indian minister Piyush Goyal. He was
addressing the audience as chair of the 6th Mission Steering Group meeting of the
National Technical Textiles Mission in New Delhi, India.

The ministry of textiles approved 20 R&D projects worth Rs61.09 crore across key
strategic areas of geotech, protech, indutech, sustainable textiles, sportech, and buildtech
segments and specialty fibres (carbon fibre and ultra-high molecular weight poly-
ethylene) during the 6th MSG meeting, India’s ministry of textiles said in a press release.

Among these 20 R&D projects, three projects from geotech, six of protech, one indutech,
one sportech, two sustainable textiles, two buildtech, two carbon fibres, two
specialty/functional fibre and one ultra-high molecular weight poly-ethylene (UHMWPE)
were approved.

While addressing the meeting, Goyal, the Union minister of textiles, commerce and
industry and consumer affairs, food and public distribution, said that it is necessary to
identify the areas where high strength lightweight technical textiles could be used as an
alternative material in automobile, aviation, infrastructure, and medical sectors for
enhancing efficiency, advancement, and sustainability.

The minister noted that massive outreach exercise is the need of the hour to attract more
R&D proposals in the priority areas under the National Technical Textile Mission wherein
the ministry of textiles, ministry of science and technology, and ministry of commerce and
industry may collaborate.

Goyal also said that private engineering colleges of good repute should be encouraged to
work together with Textile Research Associations or reputed government institutes for
wider awareness, benefits, and optimal utilisation of the NTTM Scheme and foster the
research and innovation ecosystem across India.

The minister reviewed the progress of Component-II of NTTM - Promotion and Market
Development, including events conducted so far such as the 10th Edition of Technotex
2023 in Mumbai with the Federation of Indian Chambers of Commerce and Industry held
between Feb 22–24, 2023, GEOTEX: National Conference on Geo-Textiles – PM Gati
Shakti Scheme in Delhi with the Confederation of Indian Industry on March 24, 2023,
Technical Textiles: Exploring Growth Opportunities in Hometech and Clothtech under
Chintan Shivir – ‘Saurashtra Tamil Sangamam’ at Rajkot on April 21, 2023 and the

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6 CITI-NEWS LETTER

National Conclave on Sportech: The Future of Sport Textiles and Accessories Industry in
India in Delhi with the Indian Technical Textile Association on June 2, 2023.

Goyal also reviewed the inter-ministerial exercise conducted under NTTM for the
mandation/adoption of different technical textiles items and meetings held with the
ministry of railways and ministry of defence for enhancing usage of technical textiles.
Quality control orders for 31 technical textiles—19 geotextiles and 12 protective textiles
issued on April 10, 2023.

Senior officials from the National Institution for Transforming India Aayog, ministry of
road transport and highways, ministry of heavy industries, ministry of railways, ministry
of Jal Shakti, department of expenditure, department of higher education, department
for promotion of industry and internal trade and members from other ministries, and
eminent members from the industry attended the meeting.

Home

Cotton prices expected to stabilise due to 9% hike in MSP

(Source: Jayashree Bhosale, Economic Times, June 10, 2023)

The Indian government has increased its minimum support price (MSP) for cotton by
about 9% year-on-year for the 2023-24 marketing season. Cotton prices have already
fallen over 25% in the last eight months, leading to a shortage of cotton in the market. The
increase in MSP for the next season is expected to stabilise the prices and may lead to a
5% increase in cotton planting in India. Cotton processors are hopeful of getting enough
raw material. However, some cautioned that a hike in MSP, without increasing cotton
productivity, can endanger India's competitiveness in the global markets.

Cotton prices, which have fallen by over 25% in the last eight months, are expected to
stabilise after the government on Wednesday increased its minimum support price (MSP)
for the commodity for the 2023-24 marketing season by nearly 9% year-onyear. The price
drop had led to an unrest among cotton farmers who were holding on to their produce in
expectation of better rates, creating a shortage of cotton in the market

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7 CITI-NEWS LETTER

From a high of Rs 10,000 per quintal in October, cotton prices have fallen to Rs
7,200/quintal. Industry experts said that if the price fall continues, farmers may prefer to
wait till the next season to sell at the new MSP of Rs 7,020/quintal. "The increase in MSP
of cotton will also help to cap the downward trend in cotton prices," said BS Rajpal, a
veteran cotton ginner from Maharashtra, which has the highest area under cotton in the
country. “Instead of selling cotton at lower rates, farmers may opt to wait and sell cotton
at the new MSP to the government in the next cotton seas

The area planted under cotton is also likely to be aided by the increased MSP. “We were
expecting a fall in cotton acreage before the government announced the MSP. However,
now the area under cotton can increase by about 5%,” said Pradip Jain, president,
Khandesh Ginning and Pressing Association. With the increase in MSP, cotton processors
are hopeful of getting enough raw material. "We couldn’t run our mills at full capacity as
farmers did not bring enough cotton to the market this year," said Avinash Kabra, a cotton
process

from Dharangaon in north Maharashtra. “Any increase in cotton production due to

increase in MSP will increase the supply of raw material for the cottonbased industry.”
However, the export-focussed spinning mills from south India cautioned that a hike in
MSP without any increase in productivity of cotton can jeopardise India's competitiveness
in the international market

Increase in MSP is not the solution to increase cotton production in India. We need to
improve the productivity of cotton by bringing better technology and better seeds," said
Ravi Sam, chairman, Southern India Mills’ Association. The increased MSP is higher than
the prevailing market prices. Pushan Sharma, director - research, CRISIL Market
Intelligence and Analytics, said, "The MSP has increased by about 9% on year, while the
average mandi prices are 14-15% higher than the MSP. Thus, farmers may not be inclined
to sell at MSP. This has been the case for the past two years and, consequently, cotton
procurement at MSP has been negligent."

Sharma added, "However, anticipating higher production in cotton for marketing year
2023-24, if mandi prices witness a decline, this higher MSP will bode well for farmer
income in Maharashtra, Telangana and Gujarat, which are key cotton-producing states."

Home

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8 CITI-NEWS LETTER

4M mantra: How the Modi government delivers

(Source: Chetan Aggarwal & Pranav Gupta, Economic Times, June 10, 2023)

As the Modi government completed nine years in office last week, the media was flooded
with data showcasing the government's remarkable performance in public service
delivery and welfare provisioning. Even sceptics are astonished by the scale of
achievement, whether it be in ensuring the holy grail of roti-kapda-makaan or the
aspirational troika of bijli-sadak-pani

While debate surrounds the impact of flagship schemes, we believe it is more meaningful
to delve deeper. Since his days as chief minister, Narendra Modi has consistently focused
on both outcomes and output. This dual focus has been instrumental in designing
effective policy interventions and implementing programmes. The Swachh Bharat
Mission (SBM) serves as a prime example. Numerous studies highlight the correlation
between open defecation and stunting, malnourishment, diseases and crimes against
women. To address these, PM Modi prioritised the elimination of open defecation. While
the rhetoric was framed around "women's dignity," the bureaucracy was tasked with
achieving the tangible output - constructing toilets for all households.

The subsequent execution and fulfilment of target for SBM and indeed, various other
successful delivery programmes have followed a 4-M approach: mindset change, mission
mode, monitoring and mass participation. Mindset change The most obvious change to
any observer of public policy is the paradigm shift in the scale of the programmes
conceptualised and implemented. Gradual rollouts have given way to swift nationwide
programmes. Ambitious and seemingly unachievable targets have become a hallmark of
the Modi government's initiatives.

through the Total Sanitation Campaign and Nirmal Bharat Abhiyan, Modi took on the
challenge of providing toilet access to all households by 2019. The ambitious target was
matched with rapid execution, constructing over 9 crore toilets in less than five years,
three years ahead of the UPA target. Similar emphasis on achieving widespread coverage
is evident in other schemes like opening bank accounts or the successful Covid-19
vaccination drive. Even when targets are not fully met, the achievements surpass those
touted as "successful" under previous governments. For example, although the installed
capacity of solar energy fell short of the initial target of 100 gigawatts, it still increased
almost 20 times in the past nine years, reaching an impressive 65 gigawatts. This

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9 CITI-NEWS LETTER

contrasts with earlier times when slow delivery and limited fulfilment of narrow targets
was the standard.

Missionary approach Most of the Modi government's flagship initiatives have been
launched as missions. In his first Independence Day speech in 2014, Modi announced the
Swachh Vidyalaya initiative, committing to providing toilets for all schools within one
year. This later expanded into the Swachh Bharat Mission. Similarly, he pledged to
electrify all villages in the country within 1,000 days in 2015, successfully electrifying
around 19,000 unelectrified villages before the target. In 2019, he promised to provide all
households with drinking water under the Jal Jeevan Mission. The proportion of
households with access to tap water connections has nearly quadrupled.

Monitoring This seemingly "headline number" approach has been effective in driving
bureaucratic results. Numbers do not lie, and it is difficult to escape the iron hand of the
'dashboard'. Real-time dashboards facilitated by modern technology allow for constant
monitoring at various levels. Unlike in the past, data collection is more timely, accessible,
and transparent, even though gaps may still exist. The availability of official records and
ground realities on these portals enables observers to track progress and identify
discrepancies. For example, uploading photographs of electricity installations on a public
mobile app reduced the likelihood of falsification. No contractor dares easily fake the
verifiable!

Mass participation It is almost tautological that successful schemes involve enthusiastic

mass participation. Schemes that lack public receptivity often fail. Positive public action,
such as registration and demanding accountability, generates momentum, and creates
constructive pressure on bureaucrats for delivery. There are valuable lessons for the
government as it enters the slog overs before the polls. The 4-M approach has established
a new normal. This has crucial political implications as meeting the heightened
expectations of Modi government's labharthis presents a stiff challenge for all parties.

Home

India can grow at 6.5-7% till 2030 without overheating risk, says CEA V
Anantha Nageswaran

(Source: Prasanta Sahu, Financial Express, June 10, 2023)

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10 CITI-NEWS LETTER

“Domestic industry, services, GST collections, bank credit growth, all of these are pointing
towards good growth momentum in 2023-24 as well,” Nageswaran added.

Chief economic adviser V Anantha Nageswaran on Friday said India could grow 6.5-7%
annually through 2030 sans any additional reforms or the risk of overheating. With more
reforms, growth could accelerate to 7.5%-8%, he said.

With a stronger-than-expected rate of expansion of 6.1% in Q4, the FY23 GDP

growth came in at 7.2%, compared with the advance estimate of 7%.

Speaking at an event organised by industry body CII, the CEA said the growth in FY23
could prove to be even higher than 7.2% when the final number is released by January-
February 2026.

“There is a momentum in the economy. Even 7.2% will turn out to be an underestimate
and not an overestimate of growth last year,” he said. “Domestic industry, services, GST
collections, bank credit growth, all of these are pointing towards good growth momentum
in 2023-24 as well,” Nageswaran added.

The finance ministry has recently upgraded its assessment of economic growth for FY24
to “6.5% with risks evenly balanced” from a ‘high downside risk’ to the forecast
maintained in the Economic Survey.

“Between now and 2030, based on what we have done so far without assuming further
reforms will be done, I can say we have the potential to grow steadily between 6.5% to 7%.
If we do additional reforms (including land and power), growth can go up to 7-7.5% or
even 8%,” he said addressing the CII event in Lucknow.

He said the Indian economy can now sustain high growth for 10-15 years without
overheating like in the past. “Whenever the Indian economy grew very strongly for three
to four years it used to run into problems, inflation will pick up, imports will go up, the
currency will become very expensive and then we have to take some drastic action,”
Nageswaran said. “But this time, because of the sound economic policies we have
followed, the infrastructure we have built in the last eight years and the digital
transformation of the economy, India can grow for a longer period without running into
overheating problems,” he said.

The CEA said average inflation is manageable at around 5% in FY24 compared with 6.7%
in FY23, as risks from crude oil and food items have come down. He said that even if the

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11 CITI-NEWS LETTER

monsoon was slightly delayed, water reservoir storage on an India basis is 24% higher
than the last 10-year average in terms of water availability. Seed availability is pretty good
for kharif. “Food grain procurement was very strong in 2022-23, so, there is enough
inventory to control price,” he added. The monsoon has been delayed by a week.

On June 8, the Monetary Policy Committee (MPC) of the RBI maintained a status quo on
the repo rate keeping it unchanged at 6.5% in its second bi-monthly policy meeting of the
current fiscal. The RBI revised its FY24 inflation projection slightly lower to 5.1% from its
earlier forecast of 5.2%, but flagged that developments related to the monsoon needs to
be monitored.

Home

India, UK finish 10th round of free trade agreement talks

(Source: Financial Express, June 09, 2023)

India and the UK concluded their 10th round of negotiations on a free trade agreement
(FTA) in New Delhi on Friday, with detailed discussions on the key aspects of the proposed
deal.

India and the UK concluded their 10th round of negotiations on a free trade agreement
(FTA) in New Delhi on Friday, with detailed discussions on the key aspects of the
proposed deal.

The latest round of negotiations began on June 5 and were spread over five days.
“Substantial progress has been made in the negotiations and the deal is expected to be
completed by the end of the year,” an official, who did not wish to be named, said.

The FTA negotiations cover 26 policy areas or chapters.

“Thirteen chapters have been substantially closed for negotiations and significant
progress has been made in other chapters,” the official said.

Apart from a comprehensive FTA, both sides are also negotiating a Bilateral Investment
Treaty. The investment treaty will be completed with the FTA.

India and UK started negotiating FTA in January of 2021 and now aim to get the deal
ready for signing by 2023-end.

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12 CITI-NEWS LETTER

India’s merchandise exports to the UK grew 9% on year in FY 23 to $11.4 billion, while

imports were up 27.7% to $8.9 billion.

Home

Cotton yarn prices steady in south India, fabric buying remains weak

(Source: Fibre 2 Fashion, June 09, 2023)

• In south India, cotton yarn markets remain stable, but increased purchasing
suggests a positive trend.

• Weaving industry has not boosted production due to low garment industry
demand, resulting in partial power loom operation in Maharashtra and other
states.

• Despite stagnant prices, traders in Mumbai and Tiruppur remain optimistic about
future price growth.

The cotton yarn market in south India remains steady, with no significant shifts noted.
However, increased cotton yarn purchases suggest a positive trend in the market,
according to traders. Conversely, the weaving industry has not boosted production due to
a lack of demand from the garment industry. As a result, power looms in Maharashtra
and other states operate partially, due to decreased purchasing from the garment sector.
Cotton yarn was traded at prior levels in both Mumbai and Tiruppur markets.

In Mumbai, cotton yarn prices hovered around previous levels due to a lack of market
stimulus from the demand side. “Weaving activities in Maharashtra haven't picked up yet,
as fabric demand remains low. Nevertheless, a positive outlook persists in the yarn
market, based on anticipation for higher future prices,” Bharat Shah, a Mumbai market
trader, told Fibre2Fashion.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at ₹1,470-
1,500 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include 60
combed warp ₹345-352 per kg, 80 carded (weft) cotton yarn ₹1,420-1,450 per 4.5 kg,
44/46 count carded cotton yarn (warp) ₹264-272 per kg, 40/41 count carded cotton yarn
(warp) ₹256-264 per kg and 40/41 count combed yarn (warp) ₹280-287 per kg, according
to Fibre2Fashion's market insight tool TexPro.

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13 CITI-NEWS LETTER

In Tiruppur, cotton yarn prices remained stable amid increased demand. Traders believe
this uptick could lead to future price increases. Speaking to F2F, a Tiruppur-based trader
said, “Positive sentiments remained intact in the local market. Cotton yarn was traded at
previous prices. But the higher demand raises the prospect of future growth in both
demand and prices.”

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹264-270
per kg (excluding GST), 34 count combed cotton yarn at ₹275-280 per kg, 40 count
combed cotton yarn at ₹285-292 per kg, 30 count carded cotton yarn at ₹240-245 per kg,
34 count carded cotton yarn at ₹247-252 per kg and 40 count carded cotton yarn at ₹250-
257 per kg, as per TexPro.

Meanwhile, in Gujarat, cotton prices stabilised following a decrease in the past few days.
The weaving industry showed slower demand, leading ginners to withhold their stocks,
expecting potential price hikes. Despite global indications pointing towards an uptick due
to increased cotton exports from the US to China and beyond, the domestic market
remained unaffected. Cotton was traded at ₹58,000-58,500 per candy (356 kg).
Estimated cotton arrivals in Gujarat were 24,000-27,000 bales of 170 kg, with total
Indian arrivals projected at 75,000-80,000 bales of 170 kg.

Home

PM GatiShakti’s Network Planning Group recommends road project in

Tripura

(Source: Live Mint, June 09, 2023)

The project is planned with a multimodal connectivity approach, connectivity to industrial
clusters and new SEZ namely Paschim Jalefa, efficient freight movement, reducing carbon
footprint, optimized alignment and logistical efficiency

The 49th Network Planning Group (NPG) meeting of PM GatiShakti National Master Plan
(NMP) on Friday recommended a road project in Tripura, the ministry of commerce &
industry said in a statement.

Sumita Dawra, Special Secretary, Logistics Division, Department for Promotion of

Industry and Internal Trade, Ministry of Commerce and Industry, chaired the meeting of
the NPG.

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14 CITI-NEWS LETTER

“The road section of Khowai-Teliamura-Harina with a total length of 134.9 kms was
considered for its improvement and widening to two lanes with paved shoulder of NH-
208 in Tripura. It is a brownfield project with total cost of ₹2,486 crore," the ministry
said.

The project is planned with a multimodal connectivity approach, connectivity to

industrial clusters and new SEZ namely Paschim Jalefa, efficient freight movement,
reducing carbon footprint, optimized alignment and logistical efficiency, it added.

The road will pass through the districts of Khowai, Gomati, and South Tripura, connecting
important locations such as Khowai, Teliamura, Twidu, Amarpur, Karbook, and Harina.
Besides enhancing interstate connectivity between Assam and Tripura, the road project
is expected to stimulate economic and industrial activities in Tripura.

According to the ministry, the project planning under the National Master Plan has
yielded several key benefits. By utilizing the National Master Plan, the road length has
been reduced by 28 kilometers, resulting in a saving of 2.5 hours of travel time. The
project corridor will facilitate intermodal transport from Teliamura Railway Station and
Manu Bazar Railway Station near Harina. It will also improve connectivity to Agartala
Airport and the proposed Multi-Modal Logistics Park (MMLP) at Udaipur.

Furthermore, the project will enhance connectivity to four economic nodes, including
industrial clusters around Agartala and FCI depot, as well as thirteen social nodes such as
Matabari Temple, Neer Mahal, Pilak Civilization Museum, Jampui Hills, Ambassa Eco
Park, and more. It will facilitate freight movement from Kolkata to North Eastern States,
primarily Tripura, Mizoram, and Manipur, to Bangladesh.

Moreover, the project will facilitate the movement of raw materials for industry clusters
in Tripura and the transportation of manufactured goods such as rubber, textiles, bamboo
products, and food processing items from economic nodes like the SEZ located at Paschim
Jalefa, Sabroom in South Tripura District, and industrial clusters/parks around Agartala
and Udaipur. The proposed road will also connect North East India to Chittagong Port in
Bangladesh, ensuring efficient EXIM connectivity.

The road project in Tripura is expected to contribute to the development of tribal areas,
enhancing connectivity to three tribal districts - Khowai, Gomati, and South Tripura.

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15 CITI-NEWS LETTER

According to the ministry, the project will be implemented on an Engineering

Procurement & Construction (EPC) basis, with support from the Japan International
Cooperation Agency (JICA) Official Development Assistance (ODA) Loan.

“The principles of PM GatiShakti NMP have been adopted during the planning of the road
alignment. Alignment of the road is superimposed with data layers available on NMP
Portal like railway lines, forest, power lines, water bodies etc. The intersections will be
seen with forest and other sensitive zones to minimize environmental disruptions," it
added.

Home

Southern states to contribute 35% of India’s $7tn economy by 2030

(Source: Outlook India, Times of India, June 09, 2023)

Southern states will contribute 35% of India’s $7 trillion economy, which the country is
expected to reach by 2030. Tamil Nadu and Karnataka will lead the list in the south, with
the former (Tamil Nadu) is working towards emerging as a $1 trillion economy in the next
seven years. Kamal Bali, president & managing director, Volvo Group India, who has been
elected the chairman of CII southern region said, Andhra Pradesh, Karnataka, Kerala,
Tamil Nadu, Telangana will collectively share $2.5 trillion out of the $7 trillion economy.

Already, south India contributes 31% of the GDP. This share will grow between 33 and
35%. Overall, south India will be the growth engine for the country for many many
decades to come,” he said. While Maharashtra, Tamil Nadu, Gujarat and Karnataka will
account for almost 50% of the country's GDP, he said, Uttar Pradesh is coming up in a big
way. Noting that the ultimate goal is to make India a $35 trillion economy by 2047, he
said, the focus should be on India playing a key role in expanding the manufacturing
sector. “Over $4 trillion of manufacturing worldwide is moving to other geographies and
India can be one of the major recipients of this shift. Even if we get 10% of this shift,
India's manufacturing, which is currently at $400-$500 billion, will rise to $800-$900
billion. If we get 20% of that shift, our manufacturing can go up to $1.2 trillion,” he said.
In turn, this will increase the share of manufacturing to 25% in the GDP from the current
15%-17%, Bali added

To a query on the shortage for manpower in the manufacturing sector in the south, he
said, there is no dearth of manpower, though there is a mismatch of job and skill sets. CII

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16 CITI-NEWS LETTER

southern region will be rolling out a slew of initiatives for transformation of industries
through competitiveness, growth, sustainability, trust and globalisation for the next two
years. CII will be handholding 2,000 MSMEs who will be serviced and sensitized on
various elements of competitiveness in collaboration with CII centres of excellence. Of
this, about 800 MSMEs are located in Tamil Nadu.

Nandini, deputy chairperson, CII southern region & managing director, Chandra Textiles
Pvt Ltd said, “We will work closely with the state government to transform Tamil Nadu
into a media, entertainment and animation hub of India. We will come up with vision
documents for six districts to promote industrial development and job creation in the
state.” CII will also promote Chennai as the fintech capital of India and the city as a global
hub for Global Capability Centres (GCC), she added.

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A Candid Conversation With Ms. Priyamvada Bhumkar, MD - Soujanya

Colour On Creating Synergy In Corporate And Environmental Goals

(Source: Outlook India, June 09, 2023)

Ms. Bhumkar shared her views on a wide range pressing environmental issues and the
holistic green approach her company - Soujanya has embarked on to integrate
sustainability across all aspects of their business. Excerpts from the conversation.

Climate Change, Environment Conservation and Sustainability were the hot topics this
week as World Environment Day was celebrated with much fanfare in India and across
the globe. An industry which has a predominately negative perception when it comes to
adherence to environmental norms is the chemical industry. Outlook spoke to Ms.
Priyamvada Bhumkar, Promoter & Managing Director, Soujanya Color Pvt. Ltd; a
chemical enterprise which is among the global leaders in colorant manufacturing and
research.

Ms. Bhumkar shared her views on a wide range pressing environmental issues and the
holistic green approach her company - Soujanya has embarked on to integrate
sustainability across all aspects of their business. Excerpts from the conversation.

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1. It is considered that the growth of the chemical industry is directly

proportionate to environmental degradation. Being a leading stakeholder in
the Indian Chemical space, what is your take on this?

Across the world, the societal perception of the chemical industry is that of one which
cares little for the environment. People are often oblivious to the fact that the chemical
industry provides the backbone materials and critical components to many things they
absolutely can’t live without right from food (agrochemicals), medicines, shelter
(construction chemicals), clothing (textiles), power, electronics, home personal care
products, etc. If indeed the chemical industry is to continue to provide for basic
necessities, the only way this is possible in the long term is if we actively think about
preserving the environment that we consume so much from. It is now imperative for every
company in this business to have this long-term view, and to have sustainability agenda
at the core of its business.

The proliferation of the chemical industry in India in the last few decades can at least in
part be attributed to Western countries’ firm drive to move away from polluting or
hazardous chemical production.

2. This year’s World Environment Day theme is “Beating Plastic Pollution”

How is Soujanya dealing with this challenge?

At Soujanya, we believe in optimising resource use to the bare minimum and drive many
initiatives along that principle. You will see that our consumption of most resources
measured per unit of production gradually decreases over time despite production
volumes increasing year over year.

The usage of plastic in our business comes in the form of packaging material for our
products. We track the quantum of plastic which we put out into the environment and
have set targets to reduce the use of plastic by curbing waste at the plant level and by tying
up with government-authorized plastic recyclers for recycling certifications. We are
working on reducing the use of plastic in our secondary packaging as well as moving to
more sustainable grades of plastic for packaging such as Polyethylene Terephthalate
(PET). There is an overarching awareness of plastic within the company and we work
towards minimizing the impact on a continual basis.

3. For any business to be viable profitability is key. How does Soujanya strike
the delicate balance between profitability and sustainability?

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We believe that sustainability must be at the core of any business for its long-term
profitability. At Soujanya, all choices we make for our business are governed by the
agenda of sustainability. In fact, our consistent efforts have enabled us to achieve
significant progress on our sustainability goals in FY2022-23 including – a 43% reduction
in the volume of hazardous waste sludge generation and a 34% reduction in water
intensity in Production.

We have a firm belief that the sustainability agendas we follow, help differentiate and
position our company as a reliable partner for the long-term. Rather than a detractor, we
see it as an enabler for the profitable growth of our business.

4. Women are nurturing by nature. Do you think women are better served to
take up sustainability roles in Corporates and Government?

Aah! You are asking this question to a woman entrepreneur - one who has played all roles
in a business. Nevertheless, you are right in a way - with the inherent nature of women
being one of nurturing, roles in the realms of sustainability in both corporate and
government do strike a natural chord. Having said that, I do also believe that we need to
see more women in professional life - not only in sustainability roles but in all aspects of
business and government, whether they are at the strategy level, policy and governance,
or marketing, finance, technology, and human resource functions. Women can be major
contributors to both businesses and governments.

5. Can you briefly elaborate on a few pioneering or innovative initiatives of

Soujanya which have had a positive impact on the environment?

Our ‘Green’ philosophy is holistic and resonates across all aspects of our Business. We
have deployed ‘green’ design of our manufacturing facility to minimise electricity
consumption. We are pioneers in bio product development for the cosmetics industry
which is first such initiative anywhere in the world. We are leaders in the development of
VOC-free colorants to make the paints used in homes safe. Similarly, there are many such
initiatives that are mitigating the negative impact on the environment; these initiatives
give me great personal satisfaction as a corporate leader.

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Over 1,000 workers laid off at Kerala govt textile mills, financial crunch
tightens grip

(Source: K S Sreejith, New Indian Express, June 09, 2023)

All the five mills are under the Industries department held by the CPM which had
spearheaded many an agitation against lay-offs across the state.

n a major embarrassment for the ruling CPM, over 1,000 workers of five state-run textile
mills were laid off, most of them over the past four months, and paid neither the pending
salary nor lay-off wages. Observers attribute the development to the severe financial
crunch the state is experiencing.

All five mills are under the Industries department held by the CPM which had
spearheaded many an agitation against lay-offs across the state. The trade unions in the
mills affiliated with the CITU have openly come out against the department’s lackadaisical
approach to the issue.

Chengannur Prabhuram Mills, Malappuram Edarikkodu Textiles and Thrissur

Cooperative Mills are remaining closed for the past four months, while Kottayam Textiles
and Seetharam Textiles have downed shutters for the past three weeks.

The mills used to buy cotton from private agencies in Karnataka, Andhra Pradesh,
Telangana and Maharashtra. This year the Industries department has not provided
enough funds to them to procure cotton. Kottayam Textiles has around 300 permanent
workers. Seetharam has 200, Edarikkad 250, Prabhuram 200 and Thrissur Cooperative
Mills 225.

“The department has to pay Rs 1.15 crore per month as lay-off wage to the workers.
However, it has not been paid so far,” Textile Federation general secretary M R Rajan told
TNIE.

“If the wages are to be calculated it would be more than `3 crore. The mills have not given
gratuity to the workers who had retired. This is an unprecedented situation. According to
the Factory Rules if a company went to lay off the permanent worker is eligible for lay-off
wage which is half of the salary,” Rajan said.

‘Industries dept should make way to open mills’

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Soon after assuming office, the second Pinarayi government constituted a board to
facilitate the purchase of cotton from the open market. The plan was that the Industries
department will allocate money to the board to buy cotton which will be distributed to the
mills. However, no allocation has been made to the cotton board so far, sources said.

To make matters worse, the Industries department also pushed to implement the ‘Job
Guarantee Scheme’ in the mills. According to the scheme, the mill’s day-to-day work will
be handed over to private parties who would buy cotton, make the products and pay the
wages to the workers. The ownership of the mills would remain with the government.
However, strict protests from the CITU compelled the department to retreat.

Although the Textile Federation leaders met Industries Minister P Rajeeve twice and
submitted a memorandum, the department is yet to convene a meeting to discuss the
issue. “We know the government has financial constraints. However, the department
should make way to open the mills,” said Rajan.

“The problem in these mills is part of a bigger issue the state PSUs are going through,”
noted economist Dr K P Kannan told TNIE. “In general, there are about 80-90 PSUs in
the state. A little more than half of them are making losses. Only 35 PSUs are making a
profit. Each year PSUs make an accumulated loss of Rs 2,000 -5,000 crore,” he said.

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GLOBAL
Transition to Industry 5.0 for textiles depends on stakeholder support

(Source: Shemona Safaya, Just Style, June 09, 2023)

A group of European textile industry experts have agreed investment in digitisation and
technology by all industry stakeholders is essential in transforming the industry for the
future.

The European Textile and Fashion industry (Euratex) held a meeting in Milan on 7 June
to discuss the relationship between innovation, sustainability, and people in the industry
of tomorrow.

Hosted by Sistema Moda Italia (SMI), the Euratex meeting addressed the crucial issue of
how to develop new competitive business models for the future, following the Industry
5.0 concept.

In 2021, the European Commission launched “Industry 5.0”, which puts the well-being of
the worker at the centre of the production process and the use of new technologies to
provide prosperity beyond jobs and growth, while respecting the production limits of the
planet.

The keynote speakers, Francesco Pinto (chairman, Yamamay) and Claudio Cavacini
(director of retail industry solutions and strategy, Salesforce), presented how digital
transformation is affecting companies in the retail industry and how they should adapt to
maintain their competitive edge.

In addition to this, a panel session of textile machinery manufacturers debated how their
companies can help deliver this transformation through state-of-the-art machinery. They
all agreed that it requires common efforts by all stakeholders along the textile value chain
and public support to make the necessary investments.

Alberto Paccanelli, president of Euratex, explained: “Today’s discussions showed that we

are ready to take up new challenges. Nevertheless, this transition towards textiles 5.0 can
only happen with the support of all actors, from policymakers to retailers.”

Paccanelli continued: “Today’s meeting was also the occasion to review the EU transition
pathway for the textiles ecosystem, published yesterday (6 June) by the European

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Commission. The pathway is the perfect example of a co-creation process between

European institutions and the stakeholders. We hope that other EU initiatives or
legislative proposals will follow the same co-creative process.”

The European Textile and Fashion industry members welcomed the Textiles Transition
Pathway as well, released on 6 June by the Commission, calling it a “valuable roadmap to
ensure a successful green and digital transition.”

Euratex believes that this meeting in Milan is also the occasion to strengthen links with
textile machine manufacturers gathering at ITMA 2023, the textile machinery fair being
held from 8 to 14 June.

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From workers' rights to ending fast fashion: The EU is cracking down on

fashion’s malpractices

(Source: Rachel Douglass, Fashion United, June 09, 2023)

In a bid to right the wrongs of past transgressions made by the fashion sector and beyond,
European legislators, politicians and committees have begun to crack down on various
malpractices carried out by the industry through new bills and regulations, many of which
address human rights issues and environmental missteps. The European Parliament has
taken to discussing, debating and, occasionally, adopting new rules acknowledging these
issues that would require EU-based companies to clean up their act when it comes to these
affairs.

Fashion United has outlined some of the most recent bills, proposals and resolutions that
have come to light relating to the EU and its fashion industry.

Exploitation in workforce and enforcing ethical practices

Last week, the European Parliament adopted rules to integrate human rights and
environmental impact into governance, which would require companies across all sectors
to prevent, end or mitigate the negative impact of their activities in these areas where
necessary. Under the draft law, which would apply to companies that place products in
the EU market and European companies that operate in other countries, members will
also have to monitor and assess the impact of their value-chain partners, including those
in supply, distribution, storage, waste management and more. In relation to the

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environment, companies will further be required to implement a transition plan to limit

global warming to 1.5 degrees.

Those deemed non-compliant will be liable for damages and could be sanctioned by
national supervisory authorities, which can involve “naming and shaming”, taking goods
off the market or receiving fines. It builds on a similar proposal sought out by the
European Commission to prohibit products that have been made through forced labour
being sold in the EU market, a legislation that is awaiting a committee decision.

The end of fast fashion

An imperative part of the EU’s current efforts to tackle issues in fashion come in the form
of bills and proposals that primarily look to put an end to “fast fashion”. In the latest
move, the Parliament said it had adopted recommendations for the EU strategy for
sustainable and circular textiles, which calls for textile products sold in the EU to be “more
durable, easier to resume, repair and recycle”. Throughout the supply chain, production
should also be respectful of human, social and labour rights, as well as environmental and
animal welfare.

The proposal was a new strategy outlined by the Commission as part of its European
Green Deal package. Its ultimate goal is to make almost all physical goods on the EU
market more friendly to the environment, circular and energy efficient throughout their
lifecycle. Other proposals in the package included the establishment of a regulatory
framework to make sure the delivery of climate objectives could be delivered and new
rules to provide consumers with more information to make sustainable choices.

It builds on an additional resolution adopted by the European Commission last year,

under the new Ecodesign for Sustainable Products Regulation (ESPR), which is scheduled
for debate in EU Parliament and could come into force in 2025. The bill would potentially
introduce digital passports for a variety of products, including clothing, and would also
make it forbidden to destroy unsold clothing.

Speaking on the move, MEP Delara Burkhardt said: "Consumers alone cannot reform the
global textile sector through their purchasing habits. If we allow the market to self-
regulate, we leave the door open for a fast fashion model that exploits people and the
planet’s resources. The EU must legally oblige manufacturers and large fashion
companies to operate more sustainably. People and the planet are more important than
the textile industry’s profits."

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Despite the efforts and procedures carried out by the EU, its commission released a report
this week in which it identified the 18 member states that were at risk of missing one or
both of the 2025 re-use and recycling targets for packaging waste and the 2035 landfilling
target. Among the countries were Portugal, Spain, Sweden, France, Ireland, Greece and
Ireland. Meanwhile, nine states were reported to be on track to meet 2025 targets,
including Austria, Belgium, Germany, Italy and the Netherlands. The report noted that
there were “significant” differences in waste management across the EU, adding that
reforms were needed to improve rates.

Textiles and deforestation

Other new laws sought out by the European Parliament are particularly focused on
dealing with textiles that have a negative impact on the environment. An issue that has
been under its radar for a while now is that of microplastics, tiny plastic particles that
derive from a variety of sources including clothing and textiles. The issue was recently
pushed via a whitepaper published earlier this year which called on the EU to mandate
filters in washing machines, alongside a wider demand for systemic change in the textile
industry. In April, the Commission also welcomed a positive vote for a proposal brought
by the Reach committee to restrict microplastics intentionally added to products. The
proposal is currently subject to a three month scrutiny by the European Parliament and
the Council before it can be adopted by the Commission.

A similar law agreed on by the EU related to the use of rubber in production, with the
union having agreed to ban the import of products linked to deforestation, a move that
applies to the popular clothing and footwear textile, among other materials. The EU is
planning to implement strict checks ensuring that forests weren’t damaged to create
products, with strong due diligence rules for companies to follow if they want relevant
items to enter the EU market. In line with the law, companies are also required to collect
precise geographical information on the farmland where their materials were sourced so
they can then be checked for compliance.

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25 CITI-NEWS LETTER

A fifth of European textile waste could become new garments – but how do
we get there?

(Source: Shemona Safaya, Just Style, June 09, 2023)

Debbie Shakespeare, senior director of sustainability and compliance, apparel solutions,

Avery Dennison explores how we can move 'fashion circularity' from just talk to real-
time action.

At least one-fifth of Europe’s textile waste could be reworked into new clothing, reports
a McKinsey study, which also estimates that a circular economy for textiles could
become profitable and create 15,000 new jobs in Europe by 2030. Fashion circularity of
this kind is exactly what the industry aspires to but how do we move from the drawing
board to the runway?

By McKinsey’s estimation, transforming 20% of old clothing into new would require
kick-off investments of up to €7bn (US$7.5bn) by 2030. Huge sums are needed to build
industrial-scale collecting and sorting systems, and to establish large-scale fibre-to-fibre
recycling facilities across the continent.

With only 1% of the world’s textiles currently being recycled into new clothes, any
improvement would be welcomed. But first, we need to unwind a tangle of challenges
that are hampering textile recycling.

The challenge of recycling textiles

Recycling textiles is an evolving science, especially for synthetic constructions, which

rely heavily on chemical and thermoplastic recycling, which are in their infancy.

There is a lack of proper technology, particularly when it comes to sorting the collected
clothing, separating blended fibres, separating fibres from chemicals including colour
during recycling, and establishing which chemicals were used in production in the first
place.

Thankfully, a great deal of research and development work is being carried out for
circular textiles solutions. Mechanical recycling of pure cotton is already established.
Economically viable technologies for chemical recycling that produce recycled fibres of a
high quality are coming on-stream for polyester, nylon, and blends.

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Meanwhile, automated textile sorting, such as the Salvation Army’s Fibresort system in
Kettering, will be vital in the circularity journey – to supply fabric technology companies
spinning new yarn, with the right kinds of textile waste to feed into their processing.

Breakthroughs will herald the beginning of a new recycled textile economy. The sooner
fashion brands can transition their reliance on other industries to supply recycled feeds,
and transition to a true circular economy, sourcing large quantities of recycled fabric at
affordable prices, the better.

This is a vision that is included in the EU Sustainable Textile Strategy.

Zips, hooks, and heat transfer embellishments on garments can cause problems and
need to be removed before entering recycling machinery. Again, innovation is helping to
solve these challenges. For instance, Avery Dennison has developed solutions that can
more easily be recycled.

Data needed for supply chain visibility

A huge stumbling block is the data disconnect between fabric suppliers, manufacturers
and retailers, causing a lack of transparency about the fibre, dye and embellishment
content of garments. Commercial secrecy, as well as the sheer complexity of the supply
chain, means transparency is often impeded.

Couple that with a complex supply chain needed for textile recycling; from collection, to
sorting, then distribution before it gets to a recycling partner.

We are seeing the development of data platforms, designed as a secure repository for
supply chain data to be shared between suppliers, retailers, resellers and recyclers.
Many retailers are in the process of working closely with suppliers, from cotton farmers,
to garment finishers and logistics partners, to gather the data required for true product
transparency.

Up until now, there has been little need for brands to keep track of post-sale data, so a
barcode has been sufficient. In this new era, however, the lifecycle data of the garment
must be available from fibre creation to the next life of products and materials. Brands
and retailers will need to be accountable for the transfer of information from supply
chain to consumer and then on to sorters and recyclers. Digital IDs and connected
cloud platforms, like Avery Dennison’s atma.io, offer the communication tools to track

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items, report impact data such as Scope 3 carbon emissions, streamline supply chains
and help report out textile waste reduction achievements.

Digital Product Passports are the missing link

In the future, more and more garments will link to a Digital Product Passport (DPP),
whether via a scannable QR code on a care label, or a hardware tag (e.g. NFC, RFID, or
Bluetooth) embedded in the garment. The purpose of a DPP is to give garment owners,
regulators, sorters and recyclers the detailed data about each individual product needed
to act with circularity in mind. DPPs aren’t merely a ‘nice to have’ tech enhancement –
they are likely to be a legal requirement in many countries within five years’ time.

A 2022 report from Accelerating Circularity, Accelerating Workforce Development in

the U.S. Circular Textile Economy, references the potential benefits of RFID tags or QR
codes on garments to support textile recycling.

Deadlines are fast approaching for the European Union’s legislation to meet sweeping
climate targets — namely, the Green Deal and Fit For 55.

The EU Strategy for Sustainable and Circular Textiles sets out the vision and concrete
actions to ensure that by 2030 textile products placed on the EU market are designed to
be long-lived and recyclable, made as much as possible of recycled fibres, free of
hazardous substances and produced in respect of social rights and the environment.
Specifically, the EU is expected to enforce a ‘Product Passport’, possibly as soon as 2025,
designed to track the contents and origin of all consumer products through a QR code or
similar digital trigger.

Certainly, information about the material components of clothing, such as fibres and
dyes, will facilitate efficient management of the product’s material components through
processes like disassembly and recycling.

There is work to do to ensure wide adoption and proper consumer understanding of

what’s possible. Avery Dennison is involved with both the CIRPASS panel in Europe
and the AAFA in the US, to help scope digital labelling and DPP technology, in line with
industry and consumer needs.

Global fashion brands are getting serious about textile recycling technology too. Zara
and Circ’s ground-breaking initiative aims to separate polyester and cotton fibres in

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order to facilitate garment recycling and propose an alternative to their end-of-life cycle.
The goal of the two companies is to “develop new recycled raw materials for the
manufacturing of new garments.” Avery Dennison recently invested in Circ, and we are
proud to support ground-breaking innovators like this – making fashion circularity a
reality.

Designing for recyclability

For apparel to be recycled, it should be designed to have multiple life cycles with
responsible materials as part of the development, which includes repair, resale and then
finally recycling. This requires very careful material selection and a durability-focused
design process.

Patagonia is a forerunner in sustainable fashion. The US brand has always designed its
outdoor wear for durability and longevity. Their Worn Wear programme reiterates that,
facilitating second-hand purchasing which has proved hugely popular. The brand
accepts used Patagonia clothing that functions perfectly and is in good condition. When
customers trade in quality Patagonia gear, they get credit towards future Patagonia
purchases.

Clearly, fashion brands are learning that garments can be designed to be repaired,
resold, recycled and repurposed. Many foresee new revenue streams from returned
clothes and are experimenting with take-back schemes and re-commerce platforms.
When these commercial models become mainstream, and consumers feel comfortable
with second-hand and repurposed garments, we have something that starts to feel like a
circular clothing world.

The signs are good. Thredup’s latest Resale Report states that the global second-hand
apparel market is set to nearly double by 2027, reaching a value of $350bn – that’s three
times faster than the global apparel market overall. Retailers are adopting resale at an
accelerated rate. In 2022, 88 brands launched resale programmes, says the report.

My advice to retailers is to start with one range designed to be recycled; choose

responsible materials, digitally enable the consumer to know what to do when they are
done with it, and enable ecosystem partners access to the data that will help them sort
and recycle materials effectively.

Ramping up consumer understanding

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According to Avery Dennison and GWI’s Digital Consumer Behaviour Report 2023 (for
which 6,300 global clothing shoppers surveyed), 45% of European fashion shoppers
said they are drawn to fashion brands using recycled materials in their garments. A
massive 71% of respondents globally stated fashion brands being transparent about their
manufacturing practices is important to them. And 60% of fashion shoppers globally see
the value in scanning a QR code on a garment with their smartphone to understand
proper care and recyclability.

There’s no denying consumers care and appear to be willing to play their part in the
circular economy. But even if they want to recycle their unwanted clothes, it’s currently
pretty hard to do so.

My big hope is that brands and government agencies successfully educate consumers
about the importance of textile recycling, using garment connectivity and DPP
technology to do so. Growing public awareness must then coincide with proper
investment in full-scale textile recycling facilities. We need a serious commitment from
fashion brands to design with circularity in mind, and to embrace recycled fabrics. If
this happens, turning old clothes into new, at scale, is eminently possible, and would be
a very good look for us all.

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US' textiles & apparel imports drop 22% to $33.7 bn in Jan-Apr 2023

(Source: Fibre 2 Fashion, June 09, 2023)

• US imports of textiles and apparel have declined by 22.05 per cent to $33.780
billion in the first four months of 2023.

• China remains the largest supplier with a 23.93 per cent market share, followed by
Vietnam with 14.64 per cent.

• Among the top suppliers, imports from China, Cambodia, Pakistan, Vietnam,
Indonesia, Honduras, Bangladesh, and India decreased.

US’ imports of textiles and apparel have continued to decrease in value terms, falling by
22.05 per cent to $33.780 billion in the first four months of 2023, compared to $43.333
billion during the same period in 2022. China remains the largest supplier of textiles and

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clothing to the US, holding a 23.93 per cent market share, followed by Vietnam with a
14.64 per cent share.

In January-April 2023, the bulk of US textile imports consisted of apparel, amounting to

$25.212 billion, while non-apparel imports accounted for $8.567 billion, according to the
latest Major Shippers Report released by the US department of commerce. Both segments
experienced a decline in inbound shipments.

Apparel imports dropped by 22.15 per cent compared to the $32.388 billion traded in
January-April 2022, while non-apparel imports fell by 21.72 per cent from $10.945 billion
in the same period of the previous year.

Among the top ten apparel suppliers to the US, the import from any country did not
register a rise. The imports from China and Cambodia declined by 32.45 per cent and
34.53 per cent, respectively. The import from Pakistan dropped 29.73 per cent, Vietnam
27.33 per cent, Indonesia 25.57 per cent, Honduras 20.61 per cent, Bangladesh 17.77 per
cent and India 16.59 per cent.

Among the top ten suppliers in the non-apparel category, imports from Mexico
experienced a year-on-year growth of 9.07 per cent. Imports from no other country rose
in this period. Imports from China, on the other hand, declined by 31.53 per cent. Inbound
shipments from other countries, such as Vietnam, Turkey, Pakistan, and Canada also
decreased. Specifically, imports from South Korea decreased by 21.36 per cent and from
India by 26.33 per cent.

During the period under review, US textile and apparel imports totalled $33.780 billion.
Man-made fibre products accounted for $17.375 billion, while cotton products were
valued at $14.135 billion. Wool products made up $1,004.673 million, and products from
silk and vegetable fibres were worth $1,264.533 million.

In 2022, US imports of textiles and apparel continued to rise, reaching $132.201 billion,
up from $113.938 billion in 2021. This increase followed a sharp decline in 2020 when
the country's inbound shipments dropped to $89.596 billion, compared to imports of
$111.033 billion in 2019.

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VDMA – Transforming the World of Textiles: efficient – digital – circular

(Source: Indian Textile Magazine, June 09, 2023)

ITMA 2023, the world’s leading trade fair for textile machinery, taking place in Milan, is
once again marked by a significant presence of VDMA member companies. The 110
exhibiting VDMA members cover nearly all different machinery chapters with a focus on
spinning, nonwovens, weaving, knitting, warp knitting, braiding and finishing. They are
part of a strong German presence with a total of around 200 German exhibitors –
including non-machine manufacturers – on approx. 17,700 square metres, covering 15%
of total space.

How are leading VDMA members contributing to the transformation of the global textile
industry? On the occasion of the VDMA press conference at ITMA, themed “Transforming
the World of Textiles: efficient – digital – circular”, five renowned VDMA member
companies presented their innovative solutions on sustainability, circular economy,
digitalisation, efficiency enhancement and resource saving.

André Wissenberg, chairman of the exhibition and marketing committee of VDMA Textile
Machinery and vice president, marketing, corporate communications and public affairs
at Oerlikon Polymer Processing Solutions Division, presented a world premiere at ITMA
in form of the EvoSteam process. This process enables, for example, annual water savings
of up to 10 million litres. With regard to digitalisation, he highlighted Oerlikon’s digital
Ecosytems, a solution to provide real time alerts, condition monitoring, machine learning,
predictive maintenance and to steer all plant shopfloor operations. Wissenberg stated:
“At Oerlikon, we contribute with our innovative technologies shown at the ITMA Milan
2023 for resource-saving use in almost all manmade fiber spinning mills in the world.
Our promise for the future is to continue to expand the zero-waste production approach,
being more efficient, digital and circular, and thus take care of achieving our customers’
and our own sustainability goals.”

Dr. Uwe Rondé, member of the board of VDMA Textile Machinery and CEO of Saurer
Group, emphasised the efforts of Saurer to dress the world sustainably by offering
spinning and twisting solutions for yarns made of mechanically recycled or chemically
regenerated fibres. At the press conference Dr. Rondé said: “Saurer has driven the
transformation of the textile industry for more than 170 years. We support the textile
industry in the areas of sustainability, digitalisation, and automation. As a trendsetter we

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anticipated early the need for processing short fibres. Today we already have a portfolio
optimised to spin and twist recycled or regenerated yarns.”

Wolfgang Schöffl, Lindauer Dornier, head of the product line weaving machines and
member of the extended management, stated: “The challenges of the textile industry are
driving the machinery building industry to new dimensions to fulfil very much related
targets such as a constant increase in productivity, quality, innovation in a very dynamic
and fast changing environment with regard to digitalisation and at the same time to
secure the highest good, the life of human being and to preserve our natural habitat. These
are the targets to whom Dornier is very much committed for now over 70 years, serving
successfully our customers all around the world.”

Dr. Janpeter Horn, chairman of the VDMA Textile Machinery Association and managing
director of August Herzog Maschinenfabrik, showed that textile machines are enablers of
CO2-neutral energy production. “Herzog, as the worldwide market and technology leader
for braiding, winding and rewinding equipment, is at the forefront of transforming the
textile world efficiently, digitally as well as circularly for braided applications. More than
just developing braiding and winding technology taking this transformation into account,
Herzog also enables the development of braided products which are needed for a circular,
CO2-free economy such as extra-long and strong ropes replacing steel-wire strength-
members for wind energy and deep sea exploration”, he said.

How circularity is addressed in the dyeing process, explained Verena Thies, vice-
chairperson of VDMA Textile Machinery and managing shareholder of company Thies.
She highlighted the Signature Series of Thies that enables an advanced after treatment
process: “Thies is opening a new chapter in fabric coloration: Signature’s innovative ultra-
low liquor ratio significantly enhances dye effectiveness, resulting in up to 20% decrease
in dyestuff consumption. By combining Thies’ cutting-edge advancements, water usage is
minimized by 52%.”

Digital Networking Demonstrator

The digital networking of machines paves the way for a variety of possible applications,
such as a central overview of the status of all machines, order management and the
exchange of process information. At the press conference, Dr. Harald Weber, managing
director of VDMA Textile Machinery, presented a web-based demonstrator for digital
networking of machines using the OPC UA standard. Standardised interfaces facilitate

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the integration of different devices. In a first project, the VDMA Textile Machinery has
developed the interface specification called OPC UA for Textile Testing Devices. At ITMA,
devices from exhibiting companies, among them the VDMA member Textechno, will use
this specification to send live data to a demonstrator. This can be accessed
at https://umati.app/overview/itma/.

Investment in the future

ITMA is traditionally an event for junior engineers. With financial support of VDMA and
under the guidance of their lecturers, 320 students from nine technical universities take
the chance to see high tech live in Milan. “Our financial support in the amount of €95,000
is an investment in the future of our industry. Highly qualified engineers are the
precondition to develop marketable technologies for the textile industry”, said Dr. Weber.

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