Sanjay Jain, Chairman, ICC National Textiles Committee feels, 10 per cent basic customs duty on cotton imports will increase the cost of cotton shirts, dresses and home textile linen in India by around 5 per cent. As per Confederation of Indian Textile Industries (CITI), India imports up to 15 lakh bales of cotton annually vis-a-vis around 390 lakh bales of crop size cultivated in the country.

However, the reduction of 5 per cent BCD on caprolactum, nylon chips and nylon fiber and yarn will make saris, dupattas, kurtis and other apparels made of nylon yarn cheaper. In India, Surat alone produces 6,000 metric tons nylon chips – 37 per cent of total national production.

Rakesh Choudhary, a nylon chip manufacturer said, the reduction of BCKD on nylon chips, caprolactam and nylon yarn will reduce working capital requirement of weavers. It will also reduce the cost of production in tyre, fishnet, automobile and other technical textile sectors where nylon chips are used.

T Rajakumar, Chairman, Confederation of Indian Textile Industry (CITI) feels the 2021-22 Union Budget will propel future growth of India’s textiles and clothing industry. However, the 10 per cent import duty on cotton is a severe blow to future prospects. Rajakumar also hails the government’s decision to set up seven textile parks within three years under Mega Investment Textile Parks (MITRA). It will help create world class infrastructure with plug and play facilities to enable create global champions in textile exports.

The Production Linked Incentive (PLI) scheme for man-made fibres and technical textiles will not only make the textile industry globally competitive but also help it attract large investments and boost employment generation, adds Rajakumar further advising the government to reduce the customs duty on caproolctam, nylon chips and nylon fiber and yarn upto 5 per cent.

Rajkumar also welcomed rationalisation of exemption on import of duty-free items as an incentive to exporters of garments, leather, and handicraft items. The decision to allow women to work in all categories and also in night-shifts with adequate protection, as well as the modified definition of small companies: implementation of the 4 labor codes, minimum wages to all categories of workers, and all will be covered by the Employees State Insurance Corporation (ESIC) are steps in the right direction, Rajkumar said.

Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) appealed for the withdrawal of the 10 per cent import duty on cotton and cotton waste in order to sustain the global competitiveness of Indian textiles and apparel industry and prevent job losses, fall in the exports, and curb cheaper imports of value added products from the SAFTA countries like Bangladesh, Sri Lanka, etc.

Chandran opined, the duty will not benefit the cotton farmers as the normal import of 12 to 14 lakh bales per year accounts only around 3 per cent of Indian cotton production and consumption and such cotton is not produced in India. He added, the duty also defeats the government’s policy of addressing an inverted duty structure in the GST especially in cotton which attracts 5 per cent GST.

The import parity pricing policy being adopted by the indigenous fibre manufacturers during the two decades and the recent removal of ADD on PTA curtails the growth of the MMF textile value chain, he adds. It also affects the competitiveness of predominantly MSME based cotton textiles and apparel industry.

Chandran further stated, the MSME and decentralized nature of the yarn, fabric and garment manufacturers in the country are not in a position to take advantage of Advance Authorization Scheme which benefits only the vertically integrated units that account less than 10 per cent of the exports.

The Government had withdrawn the import duty on cotton during July 2008 consequent to the severe recession faced by the industry and also a Nation-wide bandh by the entire cotton textile value chain. When the import duty was there, the multinationals used to cover major volume of cotton and export and thereafter the industry had to import cotton at higher price and thereby the foreign exchange also got affected, he added. Therefore, he urged the Prime Minster to withdraw the 5 per cent BCD and 5 per cent AIDC and also 10 per cent BCD on cotton waste to sustain the global competiveness of the cotton textile value chain and make Aatmanirbar Bharat vision, a reality.

Chandran hailed the announcement of MITRA scheme aiming at developing seven mega textile park with plug and play facility and facilitate 40 to 50 leading textile players to become global champions. He has stated that Tamilnadu being the largest textile manufacturing State, is planning to develop three mega parks under MITRA, Andhra Pradesh and Telangana State are already having one such park each. He has stated that this would facilitate attracting large scale investments including FDI and JVs.

Welcoming the allocation of Rs700 crore for TUF Scheme and Rs.80 crore for SITP, Chandran hoped that the additional allocations would be made liberally based on the claims filed by the Ministry of Textiles.

The 15 Percent Pledge and Gap Inc announced that Gap Inc. is the latest in a series of major companies to commit to using their financial power to create more equitable industries and profit structures. Gap Inc will be working in lock-step with the Pledge to develop its own unique strategy for reaching the company’s commitments, with additional updates to come over the next few months.

Gap Inc, the nation’s largest specialty apparel company and collection of purpose-driven lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, has joined the 15 Percent Pledge as an advocacy partner, aligning with the Pledge’s mission of creating a more equitable industry. Gap Inc. will increase their pipeline programs by 15 percent to drive access and opportunity for the Black community within the Gap Inc. family of brands starting with early empowerment programs, including internship, externship, apprenticeship, and training. Gap Inc. is proud to donate $200,000 to the organization to further support their mission. In February, Gap Inc. will share the company’s progress to create for all, with all.

The 15 Percent Pledge is a 501c3 non-profit advocacy organization urging major retailers to commit 15 per cent of their shelf-space to Black-owned businesses. It offers large corporations accountability, support and consulting services with the goal of advocating for and supporting Black-owned businesses.

A Sakthivel, Chairman, AEPC opines the Union Budget for 2021-22 will ensure robust economic recovery going forward. He believes the Budget will promote production and export of MMF based garments. The Rs 10,683 crore production linked incentive scheme for MMF garments and technical textiles, along with new Mega Investment Textile Parks scheme for setting up seven textile parks in India over three years will bring in huge investment in the MMF sector, he added.

Sakthivel further said, the mega textile parks with plug-and-play facilities by the government will create world class infrastructure in the textile sector, bring in investment, increase exports and provide employment. The reduction in custom duty on nylon will further promote the MMF garments while the doubling of budget provision to micro, small and medium enterprises (MSME) sector with the allocation of Rs 15,700 crore in the coming fiscal will strengthen the sector crucial for employment, manufacturing and exports.

Sakthivel also lauded the announcements related to the shipping sector wherein an allocation of Rs 1,624 crore has been made. He said the scheme to promote flagging of merchant ships in India will help in reducing our shipping costs,” he said. He welcomed the government’s decision to increase the capital expenditure to Rs 5.54 lakh crore in FY’22 from revised estimate of Rs 4.39 lakh crore in FY’21, saying it will prop up the economy by improving aggregate demand.

The ongoing military coup in Myanmar is prompting some US investors to pull out of the country. Prominent amongst them are luggage maker Samsonite and privately owned apparel maker LL Bean along with retailer H&M and Adidas. Myanmar’s army has usurped power and declared a year-long emergency. The move was condemned by many Western leaders while the US government threatened to impose renewed sanctions.

Lucas Myers, Analyst, Woodrow Wilson International Center for Scholars, said the coup would further strain trade relations between US and Myanmar while William Reinsch, Trade Expert, Center for Strategic and International Studies think tank, feels the move could lead to US. companies pulling out of Myanmar, given new developments and the Biden administration’s vow to focus more on human rights.

Stephen Lamar, President, American Apparel & Footwear Association, said many of the trade group’s members did business in Myanmar and found the coup deeply concerning. He urged for the full and immediate restoration of democratic rights in the country.

In the first 11 months of 2020, the total trade in goods between Myanmar and the United States amounted to nearly $1.3 billion, according to U.S. Census Bureau data. Of this, apparel and footwear accounted for 41.4 per cent of total US goods imports, followed by luggage, which accounted for nearly 30 per cent, said Panjiva, the supply chain

Parent company of brands like Tommy Hilfiger and Calvin Klein, PVH Corp has appointed Stefan Larsson as the company’s new chief executive officer and board member. Larsson succeeds Manny Chirico, PVH’s former CEO, who will continue to be the chairman of the board of directors.

Having joined PVH in June 2019 as president, Larsson helped the company’s regional teams and branded businesses, including Calvin Klein and Tommy Hilfiger, sail through the COVID-19 pandemic. He also helped the company recover from its COVID-19 losses. He previously served as the CEO of Ralph Lauren Corp from October of 2015 to May of 2017. Prior to that, he held roles as global president of Gap Inc. and in multiple global key leadership roles at H&M. In his current role, he aims to build the company’s core strengths and connecting them closer to its customers. In December, PVH reported a 18 per cent decline in its third quarter revenue. The company total revenues declined to 2.12 billion from $2.59 billion in the prior-year period. Its Direct-to-consumer revenue fell by 11 per cent.

The Council of Fashion Designers of American (CFDA) and American fashion group PVH have released a report on inequality in the fashion industry. As per Business of Fashion, the report documents the initial results of efforts made by US-based companies to foster fairer and more equitable access and development for underrepresented groups.

The analysis recognizes the industry’s efforts in working towards meaningful equality. However, it does not clarify the long-term results of such actions. More than half of respondents believed though their organizations were making genuine efforts to improve diversity, equity and inclusion, people of color are still widely underrepresented, especially at the executive level, and perceptions of the industry and its progress were much worse among Black respondents.

The report is based on a survey of more than 1,000 fashion industry professionals across more than 41 companies, as well as focus groups with college students and emerging designers and one-on-one interviews with key stakeholders. The CFDA and PVH also included data from McKinsey & Company to draw its final conclusions and recommendations.

Leather manufacturers are against the imposition of 10 per cent customs duty on import of finished leather products as it will not only lead to price hike but also threaten the competitiveness of footwear and leather products exporters. Nirmala Sitharaman, Finance Minister has proposed to impose a basic customs duty of 10 per cent on wet blue chrome tanned leather, crust leather, finished leather of all kinds, including splits and sides from nil duty.

Harkirat Singh, Managing Director, Aero Club opines this could lead to an increase in costs. Ashish Jain, Director and CEO, Latric Industries says, the Budget does not offer any major benefits to footwear manufacturers. He believes increased leather prices would make things difficult for leather footwear exports and domestic prices.

Ishaan Sachdeva, Director, Alberto Torresi says, withdrawal of tax exemption will force leather exporters to derive incentives of their products and substitute normal leather with special leather which can be quite expensive.

The textile auxiliaries unit of Kemin Industries, Garmon Chemicals has launched launched Kemzymes, a new range of enzymes specifically for garment washing. The first Kemzymes products launched by the company include stonewashing enzymes: Kemzymes KS and Kemzymes K.

Of these, Kemzymes KS are the uncompromised, concentrated version of Garmon’s new neutral cellulase enzymes for denim stonewashing. Designed to work at room temperature and included in the ZDHC Gateway, Kemzymes KS open the possibility to truly eliminate the use of pumice stones. Kemzymes K, also included in the ZDHC Gateway, are strong powder enzymes for denim stonewashing. Delivering a perfect combination of abrasion power, sustainable characteristics and superior value for its price point, Kemzymes K are designed to become the best seller of denim stonewashing enzymes for all types of industrial laundries.

Relentlessly tested by dedicated teams using the most modern equipment available, Kemzymes are a blend of Kemin’s expertise in enzymes and Garmon's historical success in developing chemical solutions.