Textile - Current Affairs Questions and Answers

ANSWER: Gandhinagar

Explanation:
A record 65 Memorandum of Understandings (MoUs)/agreements was signed on the second day of the Textiles India 2017 in Gandhinagar, Gujarat on 1 July 2017.

Of these 65 MoUs, 62 were signed by the Union textiles ministry and remaining three MoUs were signed by Gujarat government on textile sector.

The Textile Ministry includes MoUs with China, and Bangladesh for silk research, fashion technologies and knowledge transfer.

MoUs were signed between various domestic and international organisations, both private and government-owned.

Three government-to-government (G2G) MoUs were signed as well.

These were signed between the central silk board and department of agriculture of the Gyangxi Zhuang Autonomous Region, China.

They were for the development of improved silkworm breeds and mulberry varieties with the exchange of sericulture genetic materials.

Another MoU was signed between the ministry of textiles and the department of foreign affairs and trade – Australia for textiles and fashion projects.

The third was signed between the National Institute of Fashion Technology and the Bangladesh University of Fashion and Technology to encourage academic cooperation between the two institutes and strengthen academic interventions.

ANSWER: Welspun

Explanation:
Textile maker Welspun India announced on 9^th Feb 2017 that it has entered into a strategic agreement with the Cotton Egypt Association (CEA).

This allows it to market its Egyptian cotton products with the CEA’s logo for the next five years until 2022.

CEA is a non-profit body set up in 2005 by Egypt’s ministry of industry and foreign trade set up to certify Egyptian cotton products made by textile manufacturers worldwide and ensure they maintain sourcing and supply quality.

CEA has allowed us to use the logo.

Welspun India announced it will spend $3 million in the next five years for marketing and promoting its Egyptian cotton products with the new logo.

The company said it is also exploring setting up a manufacturing facility in Egypt.

American retail chain Target Corp. terminated its contract with Welspun India in August 2016, accusing Welspun of passing off ordinary cotton products as Egyptian cotton.

This is considered higher quality and is more expensive.

Target was Welspun’s largest client, bringing in $90 million in sales last financial year.

Profits declined and Welspun faces class action lawsuits for violating American consumer laws, two of which were filed in September 2016.

Welspun’s business is largely export-oriented and it sells in 50 countries, including the US, Europe and the UK.

ANSWER: 2

Explanation:
Two textile parks have been approved for Uttarakhand and the state government has to now decide where they will be set up.

• In these parks, the weavers will be provided hi-tech infrastructure facilities, modern technology raw materials and training.
• The parks aim to improve the condition of weavers in remote areas and hilly areas along the Sino Indian border.
• This park will also help skilled youth get new work opportunities

ANSWER: Textile

Explanation:
India will lend Kenya USD 45 million to help develop a textile factory and other smaller industries, according to leaders of both the nations.

• On a four nation tour of Africa, this is part of the policy push of the African nation to become an international player.
• Kenya’s current president is Kenyatta Uhuru
• USD 30 million of the funds will be used to revive Rift Valley Textiles Factory which went out of business in 2000.

ANSWER: 50 billion

Explanation:
Aided by the special package and marketing plans, India’s textiles and apparel exports are expected to touch USD 50 billion mark this fiscal from USD 38 billion in FY2016

• Union Cabinet approved INR 6000 crore package for the sector aiming to create one crore new jobs in 3 years and attract investments of USD 11 billion while eyeing USD 30 billion in exports
• Key markets like EU and US are expected to grow and new markets such as Iran, Russia and S. America will also be explored
• Country is ready to capitalise on falling share of China in textile exports in the global market and the nation’s market share has fallen to 38 percent from 40 percent on account of high wage rate and entry into high tech end products.
• Cotton Textile Export Promotion Council also released an Ernst and Young report titled “Textile Industry as a Vehicle of Job Creation for Inclusive Growth.”
• It is also important to finalise FTAs with EU, Australia and Canada in addition to negotiating concessional tariff with China to protect domestic suppliers.
• Labour intensive home textiles segment suffered on account of tariff disadvantage of 9.6 to 16 percent in markets like EU and Canada

ANSWER: INR 6000 crore

Explanation:
The Union Cabinet introduced labour law changes while approving a Rs 6,000-crore package for the textile and apparel sectors on June 22, 2016.

• A key element is increase in overtime for workers which should not exceed 8 hours per week, translating into nearly 90 hours over three months.
• The current norm allows only 50 hours of overtime in three months.
• The government also announced a change in income tax laws to allow for deduction in case more permanent workers are hired by textile and garment units.