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The Indian Fibre Society, Mumbai 1 VOL. XX NO. 3 & 4 SEPTEMBER-DECEMBER 2016 INDIAN FIBRE SOCIETY (Regn. No. G.B.B.S.D. 959/95) IFS OFFICE BEARERS President : Dr. S. N. Pandey Chairman : Dr. R. P. Nachane Secretary : Shri R. M. Gurjar Jt. Secretary : Dr. Sujata Saxena Jt. Secretary : Dr. Guruprasad Treasurer : Dr. R. D. Nagarkar From President’s Desk From President’s Desk From President’s Desk From President’s Desk From President’s Desk I am pleased to present the September- December, 2016 issue of IFS News Letter before you. As I mentioned in earlier issue of IFS News Letter that the “Paris Agreement (Accord) on Climate Change at United nations was Signed and rectified by record no. of leaders from 197 countries as the land mark deal and entering into force years ahead of schedule. The accord on climate change which aims to limit global warming to less than 2 0 C before 2100, came into force on 4 th November, 2016. The 22 nd meeting of the conference of Parties (COP 22) to U N Frame Work Convention on Climate Change (UNFCC) took place in Marrakech, Morocco, from 7 to 18 th November, 2016. COP 22 held at Marrakash (Morocco) concluded on 19 th November, 2016 with negotiators from over 190 countries setting a 2018 deadline to finalise the rule book, which would turn pledges made in Paris into action. The conference (COP 22) which was scheduled to conclude on 18 th November 2016, stretched into the next day, showed that on issues like finance, consensus remained elusive between the developed the developed the developed the developed the developed and the developing world. Among the positives Among the positives Among the positives Among the positives Among the positives, a clear roadmap to meet the 2018 deadline was drawn out. The rules will specify how to measure and account for emission reductions in all countries. They will be framed so as to take care EDITORIAL BOARD Dr. S. N. Pandey, Chairman Dr. A. J. Shaikh, Member Dr. R. P. Nachane, Member Dear Members, CONTENTS 1. From President’s Desk ... 1 2. Activities of IFS ... 3 3. News from Agriculture, Textile Industry and other sectors ... 6

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Page 1: VOL. XX NO. 3 & 4 SEPTEMBER-DECEMBER 2016indianfibresociety.org/wp-content/uploads/2017/12/IFS-September-to... · Arnold, a billionaire natural gas trade and Prince Alwaleed Bin Talal,

The Indian Fibre Society, Mumbai 1

VOL. XX NO. 3 & 4 SEPTEMBER-DECEMBER 2016

INDIAN FIBRE SOCIETY(Regn. No. G.B.B.S.D. 959/95)

IFS OFFICE BEARERS

President : Dr. S. N. Pandey

Chairman : Dr. R. P. Nachane

Secretary : Shri R. M. Gurjar

Jt. Secretary : Dr. Sujata Saxena

Jt. Secretary : Dr. Guruprasad

Treasurer : Dr. R. D. Nagarkar

From President’s DeskFrom President’s DeskFrom President’s DeskFrom President’s DeskFrom President’s Desk

I am pleased to present the September-

December, 2016 issue of IFS News Letter

before you. As I mentioned in earlier issue of

IFS News Letter that the “Paris Agreement

(Accord) on Climate Change at United

nations was Signed and rectified by record

no. of leaders from 197 countries as the land

mark deal and entering into force years ahead

of schedule. The accord on climate change

which aims to limit global warming to less than 20C before 2100, came

into force on 4th November, 2016.

The 22nd meeting of the conference of Parties (COP 22) to U N Frame

Work Convention on Climate Change (UNFCC) took place in Marrakech,

Morocco, from 7 to 18th November, 2016. COP 22 held at Marrakash

(Morocco) concluded on 19th November, 2016 with negotiators from over

190 countries setting a 2018 deadline to finalise the rule book, which

would turn pledges made in Paris into action.

The conference (COP 22) which was scheduled to conclude on 18th November

2016, stretched into the next day, showed that on issues like finance,

consensus remained elusive between the developed the developed the developed the developed the developed and the developing

world. Among the positivesAmong the positivesAmong the positivesAmong the positivesAmong the positives, a clear roadmap to meet the 2018 deadline

was drawn out. The rules will specify how to measure and account for

emission reductions in all countries. They will be framed so as to take care

EDITORIAL BOARD

Dr. S. N. Pandey, Chairman

Dr. A. J. Shaikh, Member

Dr. R. P. Nachane, Member

Dear Members,

CONTENTS

1. From President’s Desk ... 1

2. Activities of IFS ... 3

3. News from Agriculture,Textile Industry and othersectors ... 6

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The Indian Fibre Society, Mumbai2

Dr. S. N. PandeyDr. S. N. PandeyDr. S. N. PandeyDr. S. N. PandeyDr. S. N. Pandey

PresidentPresidentPresidentPresidentPresident

of transparency of action of all countries as per their

respective pledges under the agreement adopted by

195 countries last December in Paris. Though the rule

will also have mechanism to mobilise climate finance

to help developing countries in taking adoption

measures, many developing countries like India, have

expressed their concerns over the draft text.

The text adopted after assurances in the run up to

the next conference in Bonn in 2017, left many issues

solved such “as absence of clear road map toabsence of clear road map toabsence of clear road map toabsence of clear road map toabsence of clear road map to

mobilise $100 billion by 2020, as promised bymobilise $100 billion by 2020, as promised bymobilise $100 billion by 2020, as promised bymobilise $100 billion by 2020, as promised bymobilise $100 billion by 2020, as promised by

rich nationsrich nationsrich nationsrich nationsrich nations. Even the President of the conference

(COP22) Salahedine Mazour noted the issue of

finance, now is a bone of contention between

developed and developing countries. He said it will

be necessary to respect the commitment of $100 billion

from now until 2020. “In brief the Marrakech

conference outcome 1) Set a deadline of 2018 to finalise

rules for implementing the Paris Agreement, 2) In a

signal that the World was united against Donald

Trump’s climate threat, issued a strong political call

through the Marrakech action plan, 3) Signed the

India led initiative International Solar Alliance, 4)

Businesses, investors, local Government issued new

Climate Change Commitments, 5) Declaration of

Group of 40 countries which comprise the “Climate

vulnerable forum” strengthen call to limit Global

Temperature rise to as close to 1.50C as possible.

Investors including Bill Gates and more than a dozen

of the worlds wealthiest individuals revealed a new

$1 billion investment fund to foster major advances

in clean energy production. The object is to provide

money for long term energy technology that could

reduce green house emissions into areas such as

electricity generations and storage, agriculture and

transportation. Investors include, Jeff Bezos, chief

executive officer of Amazon.com Inc., Richard

Branson, the founder of virgin group ltd., Jack ma,

The Chairman of Alibaba Group Hodling, John

Arnold, a billionaire natural gas trade and Prince

Alwaleed Bin Talal, The founder of Kingdom Holiday.

As far as textile sector is concurred, the union cabinet

has recently approved a set of reforms, including

simplified labour laws and technology upgradation

for the made up sector. “This is expected to boost

employment in the textile sector and create jobs for

more than 11 lakh persons, lead to increase in exports

and enhance benefits to the workers in the textiles

and apparel sector”, said an official release. The govt.

will provide production incentive through enhanced

technology upgradation fund scheme (TUFS) subsidy

of additional 10% for made ups similar to what is

provided for garments based on additional production

employment after three years. On labours laws front

several benefits are offered. These incentives are part

of the Rs. 6006 crore package announced earlier for

the apparel sector. Textile industry welcomes this

support of Govt. It will create huge employment, earn

foreign exchange and create attraction for fabric and

yarn sectors.

During the period, on 17th December, 2016, a “National

Seminar on recent Advances in textile Finishing” was

organised by Indian Fibre Society (IFS) and CIRCOT

at the Institute auditorium at Mumbai. Seminar was

grand success and more than hundred delegates

participated in it. Book of papers and a souvenier

was published.

My hearty congratulations to members of various

committee for their hard work to make the seminar

grand success. “Wishing you all a very happy and

prosperous new year 2017”.

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The Indian Fibre Society, Mumbai 3

Activities of IFS

National Seminar on Recent Advances of Textile

Finishing was held on 17th December, 2016 was

organised by IFS and CIRCOT at Mumbai. The brief

summary of the seiiiminar is as follows:

Delegates Registration started at 9.30 AM on December

17, 2016. Inauguration Session of the seminar began

at 10.00 AM. Dr. Kavita Gupta, Textile Commissioner,

Government of India was the Chief Guest. The inaugural

session of seminar was presided over by Dr. S. N.

Pandey, President of the Indian Fibre Society (IFS).

The seminar was well attended by the delegates from

Research Institutions, Textile Industry, Academic

Organisations and Media.

Dr. P. G. Patil, Director CIRCOT, in his welcome

address welcomed the delegates and dignitaries on the

dais. In his address, he stressed upon the importance

of value addition and comfort properties of textile

products which is achieved by application of functional

chemical finishing of textiles and appraised the

delegates about the research activities of the CIRCOT

in this field such as, development of New Fire retardant

finishes, durable anti-microbial cotton textiles and

application of nano and plasma technology for textile

finishing. It was followed by lighting of the lamp by

the dignitaries. Dr, Sujata Saxena, Principal Scientist

and seminar convener informed about the objectives

of the seminar and its outline.

Three publications viz. ICAR-CIRCOT- An Overview,

Book of Papers and the Souvenir of the seminar were

released by the Chief Guest on this occasion. Dr.

Kavita Gupta, Textile Commissioner in her inaugural

address spoke about the current scenario of Indian

Textile industry and the importance of value addition

to textiles through finishing and emphasized upon

being competitive in international as well as domestic

market. She mentioned about the present huge gap

between India and China in world textile trade and

reminded the audience of our past prime position in

textiles and the need to make efforts for regaining

top position. She elaborated about the various

schemes devised by the Government of India for the

benefit of textile Industry as well as R & D in textiles

and appealed to delegates to make the best use of

them. Dr. S.N. Pandey, President, IFS presided over

the inaugural session and stressed the importance

of textile finishing in various end uses. Dr. R. P.

Nachane, Chairman, IFS highlighted the activities of

the society and also proposed the vote of thanks.

The first technical session of the seminar- An Overview

of Textile Finishing was chaired by Dr. G.S. Nadiger,

Textile & Management Consultant. Mrs. Manjiri

Paranjape, Sr. General Manager-R&D, Rossari

Biotech Ltd., Mumbai spoke on Value Addition in Textile

Finishing which was followed by a presentation by

Mr. C.N. Sivaramkrishnan, Textile consultant, Mumbai

on Functional Finishes on Textiles, Mr. Deepak

Karade, Sr. Manager, ATE Enterprises, Mumbai

made a presentation on Advances in Textile finishing

machinery. Environmental and Regulatory Issues in

Textile Finishing were explained by Mr. Prasad S.

Pant, CEO, NimkarTek Technical Services Pvt Ltd.,

Mumbai in a very lucid way. The last presentation of

the session on Development of smoothness tester

to test finished fabrics for smoothness behavior was

made by Dr. M.S. Parmar, Joint Director (Academic)

NITRA, Ghaziabad. Queries from delegates were

answered in the question answer session and the

Chairman Dr. G.S. Nadiger, Textile & Management

Consultant thanked all speakers for enlightening the

delegates about the current status of various aspects

of textile finishing and issues involved therein.

Second session of the seminar was on Functional

Finishing of Textiles, which was chaired by Dr. S.

Sreenivasan, Former Director, ICAR-CIRCOT. Dr.

Deepali Singhi, Principal, J.D. Birla Institute, Kolkata

spoke on Effect of application of selective UV-

absorbers/anti-oxidants on jute fabric for reduction

of its photo degradation and photo-yellowing. Dr. Ela

Dedhia, Professor, Nirmala Niketan College of Home

Science, Mumbai made a presentat ion on

Nanotechnology and its applications in Textiles.

Recent developments in Mosquito Repellent Finishing

of Textile materials were presented by Dr. A.S.M.

Raja, Sr. Scientist, ICAR-CIRCOT, Mumbai and in the

last presentation of the session, Dr. L. Ammayappan,

Sr. Scientist, ICAR-NIRJAFT, Kolkata discussed

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The Indian Fibre Society, Mumbai4

about Nanocomposite Application on Jute Fabric for

Flame Retardant Finishing. After the questions from

delegates were answered, the chairman spoke about

the importance of functional finishing and thanked

all presenters.

Third session on Application of Plant materials for

Textile Finishing was chaired by Dr. (Mrs.) N.

Bhattacharyya, eminent textile chemist and expert

in field of natural dyes. Dr. Sunanda R. Kalakannavar

from UAS, Dharwad presented her work on Ultraviolet

Protection of Handloom Cottons Dyed with Natural

Dye (S. Cumini), Ms Amrita Doshi from MS

University, Vadodara made a presentation on Improving

the Fineness and Hand of Banana Fibers for Yarn

Spinning. Currently used Eco-friendly Textile Finishes

were discussed by Ms Ayushi Saxena from Amity

University, N. Mumbai and Er. D.K. Sharma from

CCSHAU, Hissar spoke on Optimizing encapsulation

of renewable additives for finishing of fabrics and

informed the delegates about the facilities developed

by his organization for that purpose. There was a lively

question answer session after which chairperson spoke

about the environmental benefits of plant materials

and thanked the speakers for their presentations.

A poster session was also arranged in which seven

papers on various aspects of textile finishing were

presented which could be viewed during tea and

lunch breaks. The seminar concluded with a vote of

thanks by Shri R. M. Gurjar, Secretary, IFS, Mumbai.

Presidential Address of Dr. S. N.Pandey At Inaugural Function ofthe National Seminar on 17 th

December, 2016

Dr. Kavita Gupta, Text i le Commissioner,

Dr.P.G.Patil, Director of CIRCOT, Dr. Sujata Saxena,

Seminar Conveyer, Dr.Nachane, Chairman, IFS and

Mr.Gurjar, Secretary, IFS, dignitaries off the dais,

invitees, speakers, delegates and my dear friends,

on behalf of IFS I welcome all of you for this National

Seminar on Recent Advances in Textile Finishing

which is being jointly organized by Indian Fibre

Society (IFS) in collaboration with CIRCOT. As a

President of IFS it is my moral responsibility to brief

you about the history and activities of Indian Fibre

Society. IFS was formed in May, 1995 at CIRCOT,

Mumbai under my guidance. The Society’s first major

activity was to organise a two-day National Seminar

on ‘Future Trends in Textiles’ on 19th and 20th July,

1995 in collaboration with CIRCOT, Mumbai at the

Leela Kempinskia Five Star Hotel. In due course,

many persons from different R & D organisations,

educational institutions, industry, etc., joined the

society increasing its membership to the present day

number of about 250. In the process, IFS opened an

Eastern Zone Unit with its zonal headquarter at

CRIJAF, Barrackpore during the same year . In its Twenty years

of existence, IFS has organised a large number of

Seminars, International and national Conferences,

Workshops, Brain Storming Sessions, etc. at Mumbai

and Kolkata (W.B.).

IFS has conducted some International Conferences

at Mumbai and Kolkata. It organizes lectures by

eminent personalities for the benefit of its members.

In addition, IFS is publishing quarterly Newsletter

which contains information relevant to the textile

industry particularly in India. IFS is now planning to

upgrade the Newsletter into a referred journal devoted

to all the textile fibres, including production and

processing.

India is a leading country in production and consumption

of textiles. It contributes 14% to industrial production,

4% to GDP, 13% to the country’s export earnings

and provides employment to about 45 million people.

According to World Trade organisation, out of the

World export trade of about 732 billion US$ in textiles

and apparel during the year 2015, India’s share was

meagre about 35 billion US$ only. This low share is

due to the lower share of high value textile products

such as garments etc. India’s textile exports declined

marginally last year to $36.26 billion from $37.14 billion

recorded in the year 2014-15. In apparel,

Bangladesh’s exports to the US grew by a whopping

12% in 2015 while Vietnam did even better as its

exports rose by 14%. India, on the other hand, saw

its exports grow just by 8%.

Chemical processing is the most important operation

in the manufacturing of textile products. Finishing

process not only adds value to the textile products,

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The Indian Fibre Society, Mumbai 5

but also improves the comfort, aesthetic and

functional properties such as easy care, durable

press, flame retardant, antimicrobial etc. Lot of

innovation is required in the field of textile finishing.

To overcome the sustainability issues associated

with textile processing, textile processing with eco-

friendly chemicals with reduced water and energy

usage can be the logical approach. I request the

technocrats to develop sustainable chemicals for

textile finishing. Researchers have developed many

technologies. Some of these technologies are

successful at laboratory and pilot scale; however

issues like cost economics, non-suitability for all

textile fibres in application methods and durability

issues needs to be resolved for their adoption into

main stream textile processing. It is the duty of the

each and every stakeholder to promote and adopt

sustainable textile processing technologies to ensure

a clean environment for future generations. The weak

links in the Indian conventional industry such as

weaving and finishing have to be strengthened. This

National Seminar on Recent Advance in textile Finishing

is being organised at a very appropriate time and will

provide an opportunity to scientists, technologists and

textile industry leaders to discuss and disseminate the

recent advances in the field of textile finishing.

I congratulate all the committee members of this

seminar and thank them for their sincere and untiring

efforts to make the seminar grand success.

I hope valuable recommendations will emerge from

the deliberations of the seminar will work as guiding

force for development of newer and environment

friendly technologies in the field of textile finishing.

I wish the seminar a grand success and wish all the

participants a very happy, healthy and prosperous

New Year.

Indian Fibre Society (IFS) Felicitates Dr. S. N.

Pandey, President and Founder Chairman of IFS,

Former Director of NIRJAFT, CIAE, CIRCOT and

CRIJAF for his outstanding Research Contribution

in the field of Textile, Cellulose and Fats & Oil

Chemistry, Production Utilisation of Natural Fibres

and their By-products on 17th Dec. 2016 at CIRCOT,

Mumbai.

On this occasion Dr. R. P. Nachane, Chairman IFS

welcomed invitees and delegates. He explained in

detail about the outstanding Research Contribution of

Dr. S. N. Pandey. Dr. Pandey worked as Director of

four National Research Institutes of ICAR, which itself

is rare and most outstanding achievements. He has

authored several Books on utilisation of Natural Fibres

and their by-products which have been published by

the Govt. of India. He has published more than 500

research papers. Besides book on ‘Ramie Fibre’ has

been published by the textile Institute of Manchester,

U.K. in Two Parts, which is first of its kind. The book has

been appreciated by the Scientists all over the world and

was in great demand. Dr. Pandey had several patents to

his credit and contributed chapters in several books.

At a time, he worked as Director of Two National

Institutes of ICAR and normalized one of the Institutes,

which was on the verge of closure due to disturbance

by staff unions and its non functioning for more than

10 years. Dr. Pandey worked very hard to normalize

the Institute which was totally, non functioning for long

time.

It was Dr. Pandey’s efforts with few Scientific staff at

CIRCOT, to establish Indian Fibre Society (IFS) in 1995

and also start its Regional Centre at CRIJAF,

Barrackpore, West Bengal. Today IFS is full Grown

Organisation, has nearly 300 members and is very

active in organizing conferences, seminars, training

etc., for all this Dr. Pandey’s contribution has been

remarkable. He even at this age takes very keen and

active interest in the activities of the Society.

We are very happy to Felicitate Dr. S. N. Pandey today

for his outstanding contribution in Textile Chemistry,

administration and IFS. Shri. R. M. Gurjar, Secretary,

IFS honoured Dr. Pandey by offering a coconut, shawl

and a memento. Dr. R. P. Nachane, Chairman IFS and

Dr. P. G. Patil, Director CIRCOT also felicitated Dr.

Pandey. Dr. Pandey, thanked everyone present at this

function and expressed his gratitude for the love and

affection of the official of the society, particularly Dr.

R. P. Nachane, Chairman and Shri. R. M. Gurjar,

Secretary, IFS. A book entitled “EMINENT SCIENTIST

DR. S. N. PANDEY” Autography, President and Founder

Chairman (IFS), published by Indian Fibre Society

was also released on this occasion.

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The Indian Fibre Society, Mumbai6

News from Agriculture, Textile Industry and Other Sectors

Cotton production to hit seven year low

Shrinking area under cultivation, pest attacks on

crops in Gujarat cited as key reasons for fall

Cotton production in the country is expected to hit a

seven year low in 2016-17 because of a reduction in

the area under cultivation and pest attacks in top

producer state Gujarat, even as domestic prices have

started firming up after a poor season.

Cotton imports in 2015-16 may have been the highest

in a decade, industry insiders said. Imports may see a

new high this fiscal as the, overall area where cotton

has been sown has declined 8.7%, they said. According

to the Union agriculture ministry area under cotton as

on August 5 was 96.48 lakh hectare as against 105.68

lakh hectare a year ago.

India’s cotton production in 2015-16 declined to 338

lakh bales (one bale of 170kg each), down 12.4% from

386 lakh bales in the previous year, to hit a six year

low, according to last month’s update of Cotton

Advisory Board (CAB). N.K. Sharma, managing director

at Gujarat State Co-operative Cotton Federation, said

the industry expects cotton production to furt­her fall

to 310-315 lakh bales in 2016-17. Scientists and

industry insiders said cotton production is expected to

fall in key states such as Gujarat, Punjab and Haryana.

“As compared to its normal area of about 28 lakh

hectares, sowing was completed on 22.81akh hectares

in Gujarat as on August 8, said Keshav Kranthi, director

Central Cotton Research Institute (CICR), Nagpur. ‘Area

in Punjab is down by over 25% as compared to its

normal area,” he said Higher production in Maharashtra,

where weather conditions are looking favorable as today,

is not expected to fully compensate for the fall in Gujarat

and Punjab. Pink bollworm Gujarat and white fly in north

India had led to severe crop damage last year. This

year, CICR scientist say, white fly infestation restricted

to pockets such as zilka and Abohar in the north. But,

the late sown cotton in Gujarat, which is 30% of the

total cotton sown, is likely to get affect by pink bollworm

on a large scale.

Economics of cotton:

Spinning mills think cotton association’s

production figures low, Govt. says it is higher.

With farmers about to get their kharif harvest to markets

for sale, politics of crop estimates is in full swing as

interests of traders, consumers and farmers vary widely.

In the case of cotton, spinning millers, the primary

consumers of the commodity, think the Cotton

Association of India’s (CAI) production estimate of 366

lakh bales is on the lower side, while government

scientists say it is on the higher side.

India’s cotton imports in 2015-16 are likely to be the

highest in a decade as drought and pest incidence

reduced domestic production. There is again a fall in

cotton acreage in the current year. However, different

stakeholders in the cotton value chain differ widely

about the estimate of the current kharif crop.

The CAI has projected a production of 336 lakh bales

of 170 kg each in 2016-17, after taking into

consideration a fall of 10% in acreage. The South

India Mills’ Association (SIMA) says the production

can be higher by 4-7% than this forecast. “The crop

estimate of CAI is on lower side. We expect the

production to be higher due to favourable weather

conditions,” SIMA Chairman M. Senthil Kumar. The

CAI had estimated production of 380 lakh bales in

its first estimate for the previous year (2015-16),

which it gradually reduced to 337 lakh bales in its

latest July estimate.

Cotton prices increased by about 50% since the

beginning of the season on October 1, 2015, before

starting to gradually decline Spinning millers accuse

traders of holding considerable stocks which they want

to offload before prices decrease considerably

However, according to the estimate of a top government

scientist, who did want to be named, the 2016-17 cotton

production can be just 300-310 lakh bales. much lower

than what the CAI has estimated.

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The Indian Fibre Society, Mumbai 7

There will not be much improvement in productivity in

Maharashtra as the rainfall in cotton areas was good

even in last year. Gujarat and Telangana had deflcit

rainfall initially” said the scientists.

10 Numbers that Show Irani's Move to Textiles

Smriti Irani lost the HRD ministry to Prakash

Javadelkar in the reshuffle. Her two year tenure saw

several controversies and her shift to the textiles

ministry is seen as a less glamorous assignment.

However, her current portfolio is no less significant.

Here’s why:

$100 billion size, by revenue, that the textile and apparel

industry is projected to reach by 2016-17, from $67

billion in 2013-14.

$300 billion is the value the new textile policy aims to

clock in exports by 2024-25.

35 million is the number of additional jobs the new textile

policy aims to create.

$36 billion is the amount textile and garment exports

earn every year, which is equal to 14% of India’s export

earnings.

100 is the number of countries to which India exports

its textiles and garments. The US and the EU account

for two-thirds of India’s textiles exports.

2% of GDP is accounted for by the tex­tile industry,

making it crucial to the economy.

45 million people are employed directly in the textile

industry, making it the largest employer after agriculture.

10% is the industry’s contribution to overall

manufacturing production in the country.

Rs 6,000 crore is the special package cleared by

Cabinet for the textiles ministry, just days before the

reshuffle.

$ 2 billion amount of foreign Direct Investment (FDI)

attracted by the textile industry so far during April 2000

to March 2016.

Soon, even you can manufacture khadi

Soon, startups, entrepreneurs and small garment

manufacturers would be able to produce khadi.

To promote khadi, especially among the youth, the

Khadi and Village Industries Commission (KVIC) is set

to allow any manufacturer to produce clothes made of

the traditional fabric. The ministry of micro, small and

medium enterprises (MSME) and KVIC are likely to

come up with guidelines soon.

At present, manufacturers producing Khadi apparels

need to be certified by the KVIC.

Those wishing to venture into khadi production can get

an online khadi certificate or mark.

“How can somebody decide who should produce khadi

and who should not...the new policy will boost the use

of khadi and increase demand,” Arun Kumar Jha, CEO,

KVIC, told HT.

Khadi has been a symbol of the Indian spirit and its

independence. Last year, Prime Minister Narendra Modi,

in his Mann ki Baat, urged every Indian to buy at least

one Khadi outfit.

Besides, to increase khadi’s popularity among the

masses, there will be more varieties in home items,

including bed spreads and pillow cover.

There is currently an urgent need to increase the

production of khadi, Jha said. Besides, the KVIC is

also focusing on improving designs while bring­ing out

khadi in wool, linen, silk and muslin. A massive

marketing drive is also being planned to boost the sale

of the fabric ahead of the Independence Day. The KVIC

has also given a go ahead to readymade apparel brands,

such as Fabindia and Raymond, to sell clothes made

of khadi.

Recently, the Indian Institute of Technology (IIT)

Bombay hit the headlines after placing an order for 3500

convocation robes made of khadi. “After Gujarat

University, now khadi has also made a niche in the

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hearts of authorities of the premier ITT Bombay,” the

MSME ministry, said in a statement.

Coming clothes that can mend themselves

Coatings made from squid proteins may help clothes

that could fix their own rips, a new study by the US

Naval Research Laboratory has claimed.

The coating may not only lead to self-healing clothes,

but also help create garments tailored for protection

against chemical and biological warfare and that can

repair themselves.

The researchers investigated molecules from the

suction cups on squid tentacles for use in self-repairing

films. They focused on proteins from razor sharp, tooth

like structures around the openings of these suction

cups that help squids latch onto its prey. Previous

research suggested proteins from these “squid ring

teeth” are tough and elastic under both wet and dry

conditions.

When a fabric covered in this coating is soaked in water,

the proteins diffuse towards holes and tears in the

coating, linking segrnents of coating and fabric together

to make repairs. “We were surprised at the rapidity of

the healing process and the strength of the healed

materials,” said study co-author Walter Dressick.

Job creation, textile export top priority

Smriti Irani, who was moved from the human resource

development ministry to textiles in Tuesday’s cabinet

reshuffle, has set job creation, promotion of exports

and welfare of weavers as her areas of focus.

“Textiles industry is the largest employer after

agriculture. I hope to engage with the industry to

promote exports, skill more people and provide as much

assistance as possible to weavers,” Irani told reporters

on Wednesday after taking over as textiles minister.

Weaving is the weakest link in the textile value chain

due to the earlier policy of reserving the segment for

small scale industries, which discouraged large

investments.

Any assistance to weavers is expected to benefit states

like Maharashtra, Gujarat, Tamil Nadu, Madhya

Pradesh and Rajasthan, where there is a strong weaving

community. Uttar Pradesh too has some weaving

clusters in places like Varanasi, although not as

prominent in output as in other states.

The minister said she will try to create more

opportunities for the youth in the textile industry. Irani

is now responsible for implementing the Rs. 6,000 crore

special package for textiles and apparel approved by

the Union cabinet on 22 June, aiming to create 10 million

new jobs in three years and attracting $11 billion in

investments.

Considering the employment intensive nature of the

industry, Irani has an opportunity to engage with

labourers. The minister said she was happy to have

been given charge of textiles to facilitate employment

generation for women, in the context of the special

package.

Irani’s textile Spin: Ease Clearances & Take on

Competition

Meets industry representatives & other stakeholders

to boost exports

Within days of taking over as textile minister, Smriti

Irani has drawn up an ambitious agenda for the agenda

for the department. “The plan is to have a single window

clearance system wherever possible to reduce

paperwork and streamline processes...so that the

domestic industry can focus on competition,” said an

official with knowledge of the plan.

The government had announced a Rs. 6,000 crore

package for the industry on June 22, about two weeks

before PM Narendra Modi, moved Irani to textiles from

human resource development (HRD) in a ministerial

reshuffle.

The new textile minister has begun meeting industry

representatives and other stakeholders’ since

facilitating trade to promote textile exports is high on

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her agenda, said officials.

While taking charge, Irani had flagged support for

weavers and skilling programmes to boost ex­ports as

focus areas. Once an industry central to India’s

economy, the sector has been hit by labour trouble,

lack of competitiveness, global trade quotas and other

factors. It’s still got heft. The textile industry contributes

14% to in­dustrial production, almost 4% to India’s GDP

and accounts for 13% of the country’s export earning,

directly employing more than 45 million. It’s the biggest

employer in the country after agriculture and the

government feels it has the potential to become a

massive generator of new jobs.

India’s textile exports fell to $40 billion in FY16 from

$4L4 billion in the year before.

A key concern for industry is simplifying and easing

environmental and effluent approvals for processing

units, seen by some as a time-consuming process that

holds back investments.

A processing unit needs permission from the Central

Pollution Control Board and state pollution control

boards and these take almost three years,” said textile

expert D.K. Nair. “Also, India’s zero-discharge norm is

stricter than the ones in the US and Europe.”

The recently announced package includes a measure

of labour reforms to help make the sector competitive

after losing ground to countries like Bangladesh and

Vietnam on the export front. Irani’s immediate task will

be to pilot the package and speed up the textile policy

that is in the works.

Centre to bear 90% cost of handloom weavers’ tools

Union textile ministry Smriti Irani on Sunday said that

the center would bear 90% of the cost of new handlooms

as well as the tools required by weavers for their

(handloom) repair in case of a technical snag under

the assistance for handloom promotion scheme. “The

funds will be transferred to their bank accounts directly”,

the minister said on the occasion of National Handloom

Day Celebrations.

Govt. of India, Ministry of Textile Sanctioned SILK

Centre VARANASI in Prime Minister parliamentary

Constituency

Textile Ministry, Govt. of India sanctioned, “Silk

Technology Research centre (STRC) Varanasi.

According to Milind Anand (Officer Incharge of Central

Silk Board U. P. will be spread in 16,000 sq. ft. area

within Weaver Integrated Textile Complex. The

Texti le Ministry, Govt. of India had already

sanctioned Rs. Five Crores to start the Centre (STRS)

within this Centre, latest textile processing - testing.

dyeing and weaving machines with most advance

technology will be procured. Besides, Research will

be conducted to produce variety of silk by new

technology.

Tusar Silk will be Produced from Leaves of Arjun

Plant

It will be possible to produce silk in Eastern U. P. on

similar line as produced from Mulbary leaves in

Karnataka and Doon valley, it will be possible to produce

tusar silk in Soon Bhadra velt from Arjun leaves.

Research will also be carried out on Monga Silk. A

training centre will also be open in Karsada for

production, marketing of silk products.

Higher Cover for Handloom weavers in the Works

Accidental death insurance to be raised to Rs 4 lakh

from 1.5 Lakh

The textiles ministry proposes to increase the level of

insurance cover for handloom weavers, a sector that’s

on the government radar for job creation, more than

three fold in some cases.

The Mahatma Gandhi Bunkar Bima Yojana provides

insurance to handloom weavers in the case of natural

and accidental death and total and partial disability

The ministry has proposed increasing the cover for

accidental death to Rs 4 lakh from Rs 1.5 lakh. In case

of natural death, benefit may be raised to Rs 2 lakh

from Rs 60,000 now.

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“We are working to increase the insurance cover for

weavers in the handloom sector...it will encourage more

weavers to get covered in the insurance net,” said an

official from the textile ministry

The government released Rs 16.67 crore under the

scheme in 2015-16, compared with Rs 16.39 crore in

2014-15, when 5.74 lakh weavers were enrolled. The

benefit is restricted to two children of the member.

“It is a good move to increase protection for weavers

as this is the only scheme in which the benefits directly

get accrued to them,” said textile expert D.K. Nair.

Hand Hold weavers

The government’s effort to enhance insurance for

handloom weavers is a good plan. The reform measures

should include assistance for improved products, quality

control, better Marketing, and markets to enable the

weavers maximize the gain from the renewed interest

leading to a growing market for handloom. It will

improve weaver’s incomes and quality of life.

Khadi strikes Mktg deal

In a first, khadi is set to take the franchisee route

besides entering into at least, three marketing

arrangements with garment manufacturers as it looks

to expand its footprint and meet the growing demand

for the traditional handspun and handwoven product.

Sources told TOI that Khadi & Village Industries

Commission (KVIC) has clinched a deal with Raymond

and similar arrangements are going to be stitched up

with at least two players, Madura Garments and Arvind

Mills, which will see availability of khadi fabric at some

of their stores. While; Fabindia too was engaged in talks

with KVIC to sell khadi, the deal did not work out as

the retailer was unwilling to comply with the condition

being imposed by the government agency KVIC is also

loking at the private channels to push village products

such as soaps and other items.

The government also cleared a franchisee scheme for

KVIC, which will allow opening of 16 stores, of which

nine will come up in the National Capital Region, four

in Mumbai, two in Pudducherry and one in Jaipur. Based

on the experience with this model, KVIC will open more

stores, said a source. Currently khadi products are sold

through 7,100 stores that are operated by institutions

registered with KVIC.

The stores come at a time when others such as

Ramdev’s Patanjali are opening stores at a breakneck

pace. While Patanjali has so far focused on food and

home care products, it is entering the garment and

footwear business too.

Through franchisee stores, khadi is hope to have a

presence in newer locations, including shopping

complexes, instead of confining itself to government

and old buildings where rentals are lower.

In recent years, khadi sales have been growing at a

rapid pace with fabric and garment sales rising nearly

29% during April-August.

India lost 1.4m lives due to air pollution in 2013:

Study ranked 6th Worst, china in 4th place

India lost 1.4 million lives to air pollution in 2013, while

in China the toll was 1.6 million, estimates a World

Bank report released on Thursday.

The report, released by the World Bank and the Institute

for Health Metrics and Evaluation, shows that in 2013

more than 5 million deaths worldwide were attributed

to health conditions caused by air pollution. About 60%

of them were in the world’s two most populous

countries. Exposure to air pollution increases a person’s

risk of contracting ailments such as lung cancer, stroke,

heart disease and chronic bronchitis.

China and India aren’t among the worst hit in absolute

terms because of the sheer size of their respective

population. Even after adjusting for population these

two countries along with Bangladesh, Sri Lanka and

Pakistan were among the 15 nations with the highest

toll per million population. China and India ranked 4th

and 6th worst in the world respectively. Bangladesh,

Sri Lanka and Pakistan were ranked 11th, 12th and

15th on this count.

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The bank estimates that in 2013 Georgia saw the highest

rate of air pollution deaths per million of its population

at 2,117. It was followed by Cambodia with a death

rate of 1,300 per million. Among the 142 countries for

which the bank complied this data, there were 10 where

the rate was higher than 1,000 deaths per million.

Australia fared best on this parameter with an estimated

death rate of 34 per million.

The report also estimated that air pollution cost the

world economy more than $5 trillion (purchasing Power

Parities PPP at 2011 prices) in welfare losses and an

additional $66 billion worth of manpower loss.

China’s overall welfare and manpower loss was $1.6

trillion while India lost more than $560 billion, which

was equivalent to over 10% of China’s and 8.5% of

India’s GDP. Air pollution is estimated to be the fourth

leading fatal health risk worldwide after metabolic risks,

dietary risks and tobacco smoke.

The estimates are based on exposure to PM2.5

pollutants. It is noticeable that the risks are much higher

in the developing world. By damaging people’s health

and causing fatal diseases, air pollution can have a

lasting effect on a person’s economic productivity.

Experts argue that typically the economically weakest

section is the worst hit because of limited access to

health care facilities

World Bank to help India-led solar alliance mobilize

$1 trillion

In a significant push for solar power, the World Bank

on Thursday signed an agreement with the International

Sola: Alliance (ISA)-launched by Prime Minister

Narendra Modi at the Paris climate summit last year-

to mobilize $1 trillion in investments by 2030.

The World Bank will also lend more than $1 billion to

support India’s ambitious initiatives to expand solar

energy generation, including a $625 million, grid-

connected rooftop solar programme.

“We signed an agreement with the ISA, consisting of

121 countries led by India, to collaborate on increasing

solar energy use around the world, with the goal of

mobilizing $1 trillion in investments by 2030.This

agreement establishes the World Bank group as

financial partner for the alliance,” World bank president

Jim Yong Kim said at the end of a two day visit to

India.

Finance Minister Arun Jaitley and minister for power,

coal, and new and renewable energy Piyush Goyal were

also present at the signing of the agreement.

The World Bank president said he hoped the agreement

would help mobilize the global movement toward a

climate-friendly future.

“As part of the agreement, the (World) Bank Group

will develop a roadmap to mobilize financing for

development and deployment of adorable solar

energy, and work with other multilateral development

banks and financial institutions to develop financing

instruments to support solar energy development”,

added Kim.

ISA was launched at the UN Climate Change

Conference in Paris on 30 November last year by Modi

and French President Francois Hollande. The alliance,

headquartered in India, aims to bring together countries

situated between the tropics of cancer and Capricorn

which receive abundant sunshine for around 300 days

a year.

Kim met both Modi and Jaitley during his two day visit.

The multilateral lender will continue to support the Modi

government’s renewable energy push, he said.

“The prime minister understands the World bank better

than us and always pushes us to move faster and faster,

keeping pace with him”, said Kim, which applauding

the Modi government for its Swachh Bharat Mission,

which is also partly financed by the bank.

“India’s plans to virtually triple the share of renewable

energy by 2030 will both transform the country’s energy

supply and have far reaching global implications in the

fight against climate change. Prime Minister Modi’s

personal commitment toward renewable energy,

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particularly solar, is the driving force behind these

investments”, Kim said.

The Development of $200 million shared infrastructure

for “Solar Parks Project under a public private

partnership model is also under preparation”, said a

statement issued by the World Bank.

Govt. Planning Rs. 21000 Cr Package for Solar panel

firms

The government is planning a Rs. 21000 crore package

of state aid for India’s solar panel manufacturing

industry, according to two officials.

The so-called Prayas initiative, short for “Pradhan Mantri

Yojana for Augmenting Solar Manufacturing”, a central

government plan designed to lift India’s installed

photovoltaic capacity as well as to create an export

industry, according to two senior government officials

with direct knowledge of the plan. They asked not to

be identified because the policy isn’t yet public.

Prime Minister Narendra Modi wants to raise renewable

capacity to 175 gigawatts by 2022 from 45 gigawatts

at present.

In addition to meeting its own energy targets, which

Bloomberg New Energy Finance estimates may cost

$ 200 Billion, India wants to emulate industrial

developments in china, where solar manufacturers have

created a world-leading export industry.

The Prayas programme, part of Modi’s Make in India

campaign, is intended to create 5GW of photovoltaic

manufacturing capacity from 2019 and build 20GW of

projects in the country by 2026, according to the

officials. The policy, which is being developed by the

renewable energy minister, along with Niti Aayog

government research group, will be presented to the

union finance ministry within a month before going to

the cabinet for final approval, they said,

Last month power minister Piyush Goyal said in Mumbai

that a policy to encourage domestic manufacturing of

solar equipment is in works. When reached on phone,

the spokesman for the power and renewable energy

ministries declined to comment.

India has become one of the biggest clients of Chinese

photovoltaic manufacturers and in the absence of its

own domestic capacity, a reliance that could potentially

grow.

In the first six months of 2016, India imported 18% of

China’s production worth $1.1 billion, according to

Bloomberg New Energy Finance.

India’s policy proposal, expected to create thousands

of jobs, is also in response to the industry’s demand

for help to the country’s solar manufacturers, one official

said, adding that multiple tenders of a few hundred

megawatts each would be issued for the manufacture

of everything from wafers to modules

Trio win physics Nobel for work on states of matter

Study led to advances in quantum Computers

Three UK-born scientists won the 2016 Nobel Prize in

Physics on Tuesday for revealing unusual states of

matter, leading to advances in electronics and

development on future quantum computers.

David Thouless, Duncan, Haldane and Michael

Kosterlitz, who all now work at US universities, will

share the Prize for their discoveries on abrupt

changes in the properties, or phases, of ultrathin

materials such as super conductors, superfluids or

thin magnetic films.

Their research centres on topology, a branch of

mathematics involving stepwise changes like making

a series of holes in an object.

In the early 1970s, Kosterlitz and Thouless

“demonstrated that superconductivity could occur at

low temperatures and also explained the mechanism,

phase transition, that makes superconductivity

disappear at higher temperatures,” the panel found. In

the 1980s, Thouless showed that the integers by which

the conductivity of electricity could be measured were

topological in their nature. Around that time, Haldane

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discovered how topological concepts could be used to

understand the properties of chains of small magnets

found in some materials.

“We now know of many topological phases, not only in

thin layers and threads, but also in ordinary three-

dimensional materials,” the committee said.

“Thanks to their pioneering work, the hunt is now on for

new and exotic phases of matter,” the Royal Swedish

Academy of Sciences said while awarding the 8 Million

Swedish crown ($937,000) prize to the trio. “Many

people are hopeful of future applications in both

materials science and electronics.”

Thouless was awarded half the prize, with the other

half divided between Haldane and Kosterlitz. “Suddenly,

people are realising that the topoogical effects in

quantum mechanics are just a tremendously rich

subject,” said 65 year old Haldane.

At a news conference in Stockholm, Thors Hans

Hansson, a member of the Nobel physics committee,

used a bagel, a pretzel and a cinnamon bun to explain

topology. While the items vary across many variables,

a topologist focuses only on the holes: The pretzel

has two, the bagel has one, and the bun has none.

“Things like taste or shape or deformation can change

continuously, but the number of holes something that

we call the topological invariant can only change by

integers, like 1, 2, 3, 0,” he said.

Andy Schofield, a professor of theoretical physics at

the University of Birmingham, where Kosterlitz and

Thouless carried out their early work, said the new

understanding of phase states was particularly

promising in computing. “One of the most exciting

technological implications is in insulators that don’t carry

electricity normally but can be forced to carry electrical

current at the surface,” he said.

“That’s a very robust state, which gives a stability that

is essential to quantum computing.” There had been

speculation this year’s prize might be awarded for the

first detection of gravitational waves.

Japanese wins medicine Nobel

Yoshinori Ohsumi Worked on ‘Self-Eating’ Cell

Mechanism

Japan’s Yoshinori Ohsumi won the 2016 Nobel prize

for medicine for ground-breaking experiments with yeast

which exposed a key mechanism in the body’s defences

where cells degrade and recycle their components.

Understanding the science behind the process, called

“autophagy” or “selfeating”, has led to a better

understanding of diseases such as cancer, Parkinson’s

and type 2 diabetes, the prize committee said on

Monday “Ohsumi’s discoveries led to a new paradigm

in our understanding of how the cell recycles its

content,” it said.

The Physiology or Medicine prize, the first of the Nobel

prizes awarded each year, is worth 8 million Swedish

crowns ($933,000).

Ohsumi, born in 1945 in Fukuoka, Japan, has been a

professor at the Tokyo Institute of Technology since

2009. He told Kyodo News agency he was “extremely

honoured” to get the prize. In an interview with

broadcaster NHK, he said he had “always wanted to do

something that other people wouldn’t do...I thought the

breakdown (of cells) would be interesting, and that was

my start.”

Ohsumi’s work-carried out in the 1990s and described

by commentators as “paradigm-shifting” and

“pioneering” – included locating the genes that regulate

autophagy. This is important for medicine because it

helps show which errors in these genes can contribute

to a range of diseases.

David Rubinsztein, deputy director of Cambridge

University’s Institute for Medical Research, said

Ohsumi has provided scientists around the world with

“critical tools to help them understand how disrupted

autophagy can contribute to illnesses including

infectious diseases, cancers and neurodegenerative

diseases such as Huntin ton’s and Parkinson’s.

Christer Hoog, a professor at Sweden’s Karolinska

Institute, told Reuters the work, helped explain crucial

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processes in human development, from growing up, to

ageing to succumbing to disease.

Makers of tiniest machines awarded chemistry

Nobel

Trio’s Work Can Lead To New Type of Battery

Three scientists won the Nobel Prize in chemistry on

Wednesday for developing the world’s smallest

machines, work that could revolutionise computer

technology and lead to a new type of battery.

Frenchman Jean Pierre Sauvage, British born Fraser

Stoddart and Dutch scientist Bernard “Ben” Feringa

share the 8 million kronor ($930,000) prize for the

“design and synthesis of molecular machines,” the

Royal Swedish Academy of Sciences said.

Machines at the molecular level are 1,000th the width

of a human, hair and have taken chemistry to a new

dimension, the academy said.

Molecular machines “will most likely be used in the

development of things such as new materials, sensors

and energy storage systems.”

Stoddart has already developed a molecule based

computer chip with 20kB memory. Researchers believe

chips so small may revolutionise computer technology

the way silicon based transistors once did, the academy

said.

It said the laureates’ work has also inspired other

researchers to build increasingly advanced molecular

machinery, including “a robot that can grasp and

connect amino acids” in 2013. Researchers are also

hoping to develop a new kind of battery using this

technology.

Sauvage, 71, is professor emeritus at the University

of Strasbourg and director of research emeritus at

France’s National Center for Scientific Research.

Sauvage’s wife choked back tears as she absorbed

the news. “Jean Pierre won the Nobel prize,” she said,

her voice trembling as she spoke on multiple telephones

at once ringing with news of the prize.

Officials at the University of Strasbourg, where

Sauvage is a professor emeritus in the Institute of

Science and Supramolecular Engineering, were over

whelmed and honored by the news, and said they were

trying to reach him to celebrate his victory

Stoddart, 74, is a chemistry professor at Northwestern

University in Evanston, Illinois. His daughter Alison

said he was “absolutely ecstatic” at the honor.

Feringa, 65, is a professor of organic chemistry at the

University of Groningen, the Netherlands.

“I don’t know what to say, I’m a bit shocked,” Feringa

told reporters in Stockholm by telephone. “I’m so

honored’ and I’m also emotional about it.”

Molecular machines are molecules with controllable

movements, which can perform a task when energy is

added, the academy said.

It said Sauvage made the first breakthrough in 1983

when he linked two ring shaped molecules together to

form a chain.

Stoddart took the next step in 1991 by threading a

molecular ring onto a molecular axle, while Feringa was

the first to develop a molecular’ motor in 1999 when he

got a molecular rotor blade to spin continuously in the

same direction. The academy said the molecular motor

is at the same stage now as the electric motor was in

the 1830s.

The chemistry prize was the last of this year’s science

awards. The medicine prize went to a Japanese

biologist who discovered the process by which a cell

breaks down and recycles content. The physics prize

was shared by three British born scientists for

theoretical discoveries that shed light on strange states

of matter.

2016 economics Nobel for contract theory Awarded

for Oliver Hart and Bengt Holmstrom

The decision to award the Nobel Prize in economics

this year to Oliver Hart and Bengt Holmstrom for

theirwork in contract theory is further proof that some

of the best work in economics is being done to

understand the rules of the game and the contracts

that determine our actions in the real world.

Most of us sign contracts. Why do we do so? Take the

contracts we enter into with our employers, for example.

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There are two main reasons.

First, a contract helps the two sides of the deal work

together over a long period of time. Think of what would

happen if each company would have to search for new

employees at the start of every day, or vice versa.

Second, the contract creates rules that allow agents

with different interests to cooperate to achieve some

goal. No market economy can work without such

cooperation premised on trust but also backed by the

law. How contracts are designed defines our incentives

in various situa­tions in the real world.

There are various nuances in our contracts. They could

be formal or informal, depending on whether they are

enforced by law or social norms. They could be

complete or incomplete, which is based on whether

they take into account all possibilities that lie in the

future.

One side of a contract may know more than the other

because of information asymmetry, so insurance

companies, for example, may end up covering people

with health problems rather than the healthy, through

what is called adverse selection.

There are also agency problems as when managers

who are under contract with shareholders actually try

to maximize their own earnings rather than those of

their sharehold­ers.

Contract theory helps us understand these problems,

and helps us solve them through better contract

design. Take a simple informal contract. A harried

mother has to leave the house for a couple of hours.

She is worried her two children will bring the house

down by fighting over a large piece of cake in the

refrigerator.

The mother leaves a simple instruction the elder child

will cut the cake while the younger one will choose

which piece to eat. Now, the elder child cannot cheat.

The mother has aligned their interests or achieved

incentive compatibility through an informal contract.

Contract theory is not just about such parlour games.

In two landmark papers written in 1979 and 1991.

Holmstrom provided the pinciples that can help

companies draw up contracts to ensure that managers

do not sacrifice the longterm health of the firm in pursuit

of bonuses linked to short term performance.

This was precisely the problem in Wall Street before

the 2008 financial crisis, investment bankers took

excess risks to earn their annual bonuses while those

very risky bets almost destroyed the financial system.

Hart has similarly written seminal papers on using

contract theory in mergers, acquisitions, corporate

ownership and vertical integration. One of his most cited

papers was written with Sandy Grossman in 1986. Once

again, think of the recent controversy over the non-

compete clause for Analjit Singh in the merger between

HDFC Life and Max Life. There is contract theory at

work again here.

It is with good reason that the Royal Swedish Academy

of Sciences has said on the official Nobel website:

“The contributions by the laureates have helped us

understand many of the contracts we observe in real

life. They have also given us new ways of thinking

about how contracts should be designed, both in private

markets and in the realm of public policy.”

The use of contract theory in public policy is something

that the Indian government needs to learn, be it the

design of telecom auctions or the public distribution

system.

The fact that the 2016 Nobel Prize in economics has

gone to two giants of contract theory tells us something

else as well. Most of the public attention is lavished on

macroeconomics and the related dark art of forecasting.

This is where the crisis of economics is the deepest.

Since 1991, 22 economists have been awarded Nobel

Prizes for their work in the overlapping fields of new

institutional economics, game theory, industrial

organization, contract theory and information

asymmetry.

Their combined work helps us understand our

interactions with others and design better rules so that

social outcomes are better than before.

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The Indian Fibre Society, Mumbai16

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President IFA Distributed Blankets to Villagers (28/10/2016)through Meerashree Charitable Trust

Allahabad : During the month of October, 2016, Dr. S. N. Pandey, President,IFS, visited his native place in U.P. Allahabad. On 28th October, 2016 he wentto his native village about 50 km away from the city of Allahabad. He bought50 Woollen Blanket from the market, and distributed the blankets to the poorestof poor villagers before on set of winter seasons. Villagers were extremelyhappy and thanked Dr. Pandey.

Indian Fibre Society (IFS) Felicitates Dr. S. N. Pandey,President and Founder Chairman of IFS, FormerDirector of NIRJAFT, CIAE, CIRCOT and CRIJAF