The government approved setting up of Seven Pradhan Mantri Mega Integrated Textile Region and Apparel PM MITRA Parks in GreenfieldBrownfield sites with an outlay of 4,445 crore for a period of seven years up to 202728. These parks will enable the Indian textile industry to become globally competitive, attract large investment and boost employment.
Check out the stats on employment in India, the sectors which will create jobs for the country's population and much more/
The government approved setting up of Seven Pradhan Mantri Mega Integrated Textile Region and Apparel PM MITRA Parks in GreenfieldBrownfield sites with an outlay of 4,445 crore for a period of seven years up to 202728. These parks will enable the Indian textile industry to become globally competitive, attract large investment and boost employment.
Textiles Indian state UP plans to develop modern logistics ecosystem 28 Dec '22 2 min read Pic: astudio / Shutterstock.com India’s Uttar Pradesh state will develop a network of dry ports and freight container stations to boost exports. The plan is to cultivate a modern logistics ecosystem with private players. It will support the private sector to develop storage facilities, cold chains, multi-modal parks, container depots, and container freight stations in the state.The state government would also leverage the Varanasi-Haldia inland waterway to catalyse exports. It is planning to harness the comparatively cheaper cargo movement from Varanasi via the waterway to a seaport in West Bengal to boost shipments of farm and dairy products, apart from items manufactured by micro, small and medium enterprises.India's Uttar Pradesh state will develop a network of dry ports and freight container stations to boost exports. The plan is to cultivate a modern logistics ecosystem with private players. It will support the private sector to develop storage facilities, cold chains, multi-modal parks, container depots, and container freight stations in the state.Under the UP Warehousing and Logistics Policy 2022, the state will accelerate land allotments for logistics parks and offer a variety of subsidies and incentives to attract private investment.The state aims to turn a trillion-dollar economy by 2027 and hike merchandise exports from ₹1.56 trillion to nearly ₹3 trillion in three years, a top Indian business daily reported.The state is also exploring developing other intra-state inland waterway systems to support passenger and cargo movement.The projects will be offered front- and back-end subsidies, including exemption in stamp duty, concession in land use change levy and development fee exemption.The new policy will be effective for five years and replace the one promulgated in 2018. The incentives promised to private sector projects under the previous policy will, however, remain in force. Fibre2Fashion News Desk (DS) More Textiles News - India...
Apparel/Garments ICRA forecasts 2-3% revenue boost for India's apparel sector in FY2024 14 Sep '23 4 min read Pic: Shutterstock/Creative Lab Insights Indian apparel-exporting companies are projected to see a modest 2-3 per cent YoY increase in revenues to ₹27,255 crore in FY2024, according to ICRA. While H1 FY2024 faced tepid demand, a resurgence is expected in H2 FY2024. ICRA anticipates a recovery in growth rate in FY2025, supported by initiatives like the PLI schemes and PM MITRA parks. Indian apparel-exporting companies are expected to mark a mild 2-3 per cent year-on-year (YoY) increase in revenues to ₹27,255 crore for fiscal 2024 (FY2024), as per ICRA. Despite a tepid demand environment in the first half (H1) of FY2024, the end demand is anticipated to improve in H2 FY2024, boosting revenues.The retail apparel brands in the US and the European Union (EU), which together account for close to 55 per cent of global apparel trade, are expected to liquidate the high inventory build-up of FY2023 and book their orders for the Spring/Summer 2024 season in H2 FY2024. The outlook for the apparel industry remains stable, ICRA said in a press release.Indian apparel-exporting companies are projected to see a modest 2-3 per cent YoY increase in revenues to ₹27,255 crore in FY2024, according to ICRA. While H1 FY2024 faced tepid demand, a resurgence is expected in H2 FY2024. ICRA anticipates a recovery in growth rate in FY2025, supported by initiatives like the PLI schemes and PM MITRA parks.“ICRA expects the apparel-exporting companies to report a nominal increase in revenues in FY2024 with a recovery in growth rate in FY2025. Despite a rationalisation in raw material costs in H1 FY2024, the benefit is expected to be passed on to the orders executed, considering a weak operating environment at present. The long-term growth prospects however look encouraging, with the government of India’s various promotional steps, including the PLI schemes, the PM MITRA parks, the proposed FTAs with the UK and the EU, and the longer-term benefit of China Plus One shift in apparel sourcing,” said Kaushik Das, vice president and co-group head, corporate sector ratings, ICRA.For FY2024, ICRA expects the sample set to report ~2-3 per cent revenue growth, led by an expected recovery in demand conditions in the international markets during H2 FY2024. The operating margins may slightly moderate to 9.0-9.5 per cent in FY2024 (10.9 per cent in FY2023), on a relatively weaker operating environment in H1 FY2024, steeper raw material prices, and higher employee expenses. Indian cotton yarn prices had averaged ~19 per cent higher in FY2023 compared to the past five-year average. However, between April and July 2023, average cotton yarn prices were ~24 per cent lower than the average cotton yarn prices in FY2023, while remaining elevated. Nevertheless, the stability of export incentives, together with the benefits of higher scale, should help the companies cushion the impact on profitability. A difficult operating environment had pushed back large capex investments for most players, except a brownfield expansion by one player. However, based on an expectation of demand revival from H2 FY2024, industry players’ strategies to take advantage of the China Plus One movement, and to capitalise on the PLI incentives (especially in the man-made fibre or MMF value chain), ICRA expects a pick-up in capex spending in FY2025.Despite the expected increase in debt, the coverage ratios of the sample set are expected to remain stable as earnings improve. ICRA’s sample set of apparel-exporting companies is likely to report an interest cover of ~5.7-6 times and total debt/ OPBDITA of ~1.8-1.85 times in FY2024 and FY2025, respectively (compared to ~5.6 times and ~1.9 time respectively, in FY2023).Out of the approved 64 applicants for the PLI 1.0 scheme in April 2022, 56 applicants completed the mandatory criteria for formation of a new company and approval letters have been issued. On July 18, 2023, the government of India reopened the PLI 1.0 scheme portal till August 31, 2023, and on August 31, 2023, the government extended it till October 31, 2023. In addition to the fresh capacity additions under the PLI, the PM Mega Integrated Textile Region and Apparel (MITRA) schemes will strengthen India’s presence in the global apparel trade, by providing scale benefits and strengthening the country’s presence in the MMF value chain. ICRA anticipates the culmination of these schemes to enable the Indian apparel exporters to capture a greater share of the Chinese apparel export market.While volumes rose by a tepid 1 per cent in FY2023, the depreciation of the rupee against the USD by ~8 per cent, supported an ~8.8 per cent expansion in exports in FY2023 INR terms. Subsequently, Indian apparel exports declined by a sharp 17.8 per cent to $3.7 billion in Q1 FY2024 on a YoY basis.“The overall share of the EU, which accounts for ~31 per cent of global apparel trade, improved to ~32 per cent in FY2023 from ~28 per cent in FY2022 in Indian apparel exports. Therefore, successful conclusion of the ongoing FTA discussions with the UK and the EU, along with the FTA agreement signed with Australia, which came into force by end-December 2022, is likely to provide a growth impetus to Indian apparel exports, going forward,” Das reiterated. Fibre2Fashion News Desk (NB) More Apparel/Garments News - India...
