BEYOND BD
Indonesia: Textile industry
optimistic of reaching US$
12 billion this year Pakistan- Turkey
to invest in
textile industry
The first quarter of 2017 has
witnessed an export increase of
about 3 per cent to US$ 2 billion for
Indonesian textile industry. Surge in Pakistan’s Gross Domestic Product (GDP) is rapidly
attracting several Turkish companies which are looking for
more business avenues. It is pertinent to note that many
companies from Turkey have already established themselves
in Pakistan. “Currently negotiations are underway for
Foreign Direct Investments (FDI) in Pakistan’s textile
industry particularly in fabrics and yarn; however, some
technical issues remain unresolved,” said Mustafa Mente,
General Secretary, Foreign Economic Relations Board of
Turkey. He further added that both Turkey and Pakistan are
keen to invest in the textile industry but they need to find
common ground.
“One of the factors instrumental in
improving the performance of the
Indonesian textile industry was
the US decision to exit the Trans
Pacific Partnership (TPP). We can
optimistically reach US$ 12 billion
more until the end of 2017 although
global market scenario today is as
better as it was 2 to 3 years ago,”
averred Ade Sudrajat, Chairman
of Indonesian Textile Association
(API).
According to Ade, the positive
performance for this labour-
intensive sector is in the export of
apparel but it is not encouraging
for textile products. He further
stated that the textile industry is
still faced with many concerns such
as the increase of UVR which is
changing every year. This is one
of the factors that will derail the
income projection unless the textile
companies make some effort to
enhance efficiency and increase
their productivity.
India: Government may
soon unveil National
Textiles Policy
The Union Textiles Ministry of
India is reportedly preparing to
send National Textiles Policy to
the Union Cabinet for approval in
July. The Ministry is in the process
to give final touch to the draft.
This has been stated by Pushpa
Subrahmanyam, Additional
Secretary of Textiles Ministry,
who was in Hyderabad (India)
recently to participate in a road
show to promote upcoming Textiles
India 2017. “We have talked to
stakeholders from all segments,
be it handloom weavers or big
manufacturers on the textiles policy.
We have reached out to all the
sectors. We are almost ready with
the draft. Soon after the Textiles
India 2017 gets over, we will enrich
the document with more inputs
from the event. In July, it may go to
cabinet for approval,” reportedly
said Pushpa.
The policy under consideration aims
to achieve US$ 300 billion worth of
textile exports by 2024-25 and create
an additional 35 million jobs.
Mente is optimistic that the volume of Turkish investments
in Pakistan as well as Pakistani investments in Turkey
will increase across all sectors. “The entire region of
South Asia that includes India, Pakistan and Bangladesh
is distinctive mainly because of its vast population and
therefore attracts Turkish companies to invest,” further
averred Mente. However, the distance and cost of travelling
continue to remain issues. Turkey faces the same concern
with the American markets as well, though there are a lot of
opportunities for SMEs and other such businesses.
Negotiations are also underway between Turkey and Pakistan
to finalize a Free Trade Agreement (FTA) so as to enhance
trade between both nations. According to the Pakistan
Business Council, the level of bilateral trade between the
two countries, at present, is US$ 584 million, which has
the potential to go up to US$ 5 billion. Of late, few Turkish
companies have invested directly in Pakistan, especially in
Punjab, but that is more due to the Government’s urge to
recreate some Turkish models in the provincial capital. At
present, Pakistan’s exports to Turkey is US$ 391 million,
whereas Turkey’s exports amount to US$ 193 million.
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