The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 01 JAN 2021

NATIONAL

 

INTERNATIONAL

A ‘new’ India can’t be built by abandoning the core values of our founding fathers

After a traumatic and turbulent 2020, it’s time to ring in a New Year with hope. And since Rabindranath Tagore is being rediscovered by our netas ahead of the Bengal elections, this is a prayer for India in 2021 that draws inspiration from the great poet-laureate.

Where the mind is without fear and the head is held high. Where an Indian identity is determined by citizenship, and not divided by the narrow domestic walls of caste, region or religion. Where true secularism demands that no State authority promote or discriminate against any religion, where equal respect for all faiths must be the basis of our constitutional secularism.

Where an interfaith marriage won’t be demonised as “love jihad”. Where a consenting adult couple will not have to prove their love to a district magistrate or a local police officer in India’s most populous state or else be locked up. Where eating beef isn’t a crime in one state while it is part of an essential diet in a neighbouring one. Where agitating farmers aren’t water-cannoned or barricaded in the winter freeze. Where a farmer isn’t looked at with suspicion because he wants to be heard, where a turbaned Sikh isn’t a Khalistani but a kisan putra. Where crucial laws are passed by consultation and not by diktat, where key stakeholders are part of pre-legislative discussion. Where dissent isn’t criminalised, where protesting students, academics and human rights activists are not thrown into jail as anti-nationals and charged under non-bailable anti-terror laws.

Where a coronavirus vaccine is made available first to those most at risk and not those who wear their VVIP badges on their sleeve. Where no one labels a community as corona-carriers simply to cater to rank prejudice. Where public health systems are designed to ensure quality treatment for all. Where private healthcare recognises the difference between profits and profiteering. Where science scores over superstition and medical care, where clean air is a national priority.

Where it shouldn’t take a pandemic to remind us of the plight of the urban poor. Where no one has to ever walk hundreds of kilometres from urban shanties to their villages because of a national lockdown. Where the poor and marginalised must not be abandoned so cruelly even as the middle class and elite live in the comfort of their gated colonies and high-rise apartments.

Where a PM Cares Fund cannot be a body “owned” and “controlled” by the Government of India, but then also not come under Right to Information laws because it receives private funds. That, as taxpayers, we have the right to know where and how our monies are being spent. Where election funding too is made more transparent: Where the Information Commission doesn’t turn around and say that there is “no public interest” in revealing the details of political donors under an opaque electoral bonds scheme.

Where before we spend public money on refurbishing Parliament, we first restore the spirit of parliamentary democracy. Where democracy encourages a decentralisation in the power structure. Where political parties aren’t a family inheritance, but are built on merit. Where a robust democracy isn’t just about winning elections but ensuring a level- playing field for all those contesting elections. Where money power isn’t used for buying Members of Parliament or Members of the Legislative Assembly to topple governments and subvert mandates, where enforcement agencies don’t become weapons of threat and intimidation against political opponents.

Where the promise of free markets doesn’t end up in market monopolies, where the licence-permit raj doesn’t become a patron-crony rule. Where the vast informal sector is boosted and job-creating industries incentivised. Where growth figures aren’t fudged and headline management matters less than hard facts. Where judges recognise that notions of personal liberty cannot be selective: An octogenarian activist must not struggle for weeks to get a straw sipper in jail while influential individuals are granted instant immunity from prosecution and arrest. Where judges eschew all post-retirement benefits, where criticising the judiciary isn’t seen as criminal contempt. Where habeas corpus petitions are heard with urgency.

Where an actor’s suicide doesn’t become a national soap opera, while a farmer’s suicide is a mere statistic. Where news media is a watchdog. Where the duty of TV networks is to inform not incite, where news matters more than noise, where sense scores over sensation. Where TRPs must stand for Television Respect Points and not a crude attempt to get eyeballs at all costs. Where social media platforms can’t get away with allowing fake news and hate speech on their sites. Where a “new” India can’t be built by abandoning the core values of our founding fathers.

Source: The Hindustan Times

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2020 ends on a sombre note for the economy

The Centre has exhausted its entire Budget allocation for 12 months on food and urea in just eight months — in April-November — per data revealed by the Controller General of Accounts (CGA) on Thursday.

Data also showed that fiscal deficit for the eight-month period has touched 135 per cent of the Budget Estimate (BE). It was around 115 per cent during the corresponding period of FY20.

The government had provided over ₹1.15-lakh crore for food subsidy in the Budget. CGA data show the total food subsidy spent during April-November was over ₹1.16-lakh crore, which is 101 per cent of the BE.

Similarly, due to better kharif and rabi sowing, demand for urea picked up and so did that subsidy bill. The government spent over ₹50,000 crore in eight months on fertilizer subsidy, which is over 104 per cent of the BE.

Meanwhile, as net revenue receipts is just 37 per cent of the BE and expenditure nearly 63 per cent, fiscal deficit during April-November crossed ₹10-lakh crore, against a BE of ₹7.96-lakh crore.

 

According to Anil K Sood, Professor at the Institute for Advanced Studies in Complex Choices (IASCC), monthly expenditure data suggests that the government is continuing to shy away from investing in the economy. He said that the cumulative capital expenditure is up by 12.8 per cent during the year so far, when compared with the last year, which is an increase of ₹. 27,316 crore – a worryingly small increase given that it is a pandemic year, where the private and household investment has collapsed. If we exclude the loan disbursements by the central government, the increase in capital expenditure is just ₹3,549 crore.

“In a way the government seems to be absolving itself of the responsibility to support the economy when the households and private sector, particularly the small-medium businesses, are struggling to sustain their expenditure and investment. It is disappointing to say the least,” he said.

Aditi Nayar, Principal Economist with ICRA said that latest deficit number is 33 per cent higher than the year ago level, and 35 per cent higher than the full year budget estimate. “The month of November 2020 saw a sharp and encouraging ramping up of the Government of India's spending, with the monthly outgo recording a YoY expansion of 32 per cent for revenue expenditure and nearly 250 per cent on a small base for capital expenditure. A sustenance of this trend will bolster economic activity, and help the Indian economy exit the recession in the coming quarter,” she said.

She has estimated the total expenditure (excluding recovery of loans) at ₹. 30.42 lakh crore during current fiscal mildly lower than the budgeted level, despite the fiscal support measures that have been announced so far. This translates into a projected expenditure of ₹. 11.3 lakh crore in the last four months of current fiscal, which is a considerable 31 per cent higher than the outgo in the same period of FY2019-20, and therefore may prove to be challenging to achieve.

Source: The Hindu Business Line

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No change in interest rates on small savings schemes

he government on Thursday kept the interest rates on small savings schemes, including PPF and NSC, unchanged for the January-March quarter amid moderating bank deposit rates.

Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1% and 6.8%, respectively. Interest rates for small savings schemes are notified by the Finance Ministry on a quarterly basis.

“The rates of interest on various small savings schemes for the fourth quarter of 2020-21 ending on March 31 shall remain unchanged from those notified for the third quarter (October 1-December 31, 2020)”, the Finance Ministry said.

Accordingly, the interest rate for the five-year Senior Citizens Savings Scheme has been retained at 7.4%. The interest on the senior citizens’ scheme is paid quarterly. Interest rate on savings deposits has been retained at 4% annually.

Source: The Tribune

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Govt extends benefits of tax refund scheme to all export goods

Giving a relief to exporters, the government on Thursday said it has decided to extend the benefit of tax refund scheme RoDTEP to all goods, with effect from Friday.

In March, the government approved the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for reimbursement of taxes and duties to exporters, with a view to give a boost to the country’s dwindling outbound shipments.

 

“Taking a major step to boost exports, the government has decided to extend the benefit of the scheme for RoDTEP to all export goods with effect from January 1, 2021,” the finance ministry said in a statement.

The scheme, it said, would refund to exporters the embedded central, state and local duties and taxes that were so far not being rebated or refunded and were, therefore, placing India’s exports at a disadvantage.

“The refund would be credited in an exporter’s ledger account with customs and used to pay basic customs duty on imported goods. The credits can also be transferred to other importers,” it added.

It added that the RoDTEP rates would be notified shortly by the Department of Commerce, based on the recommendation of a committee chaired by G K Pillai, former commerce and home secretary.

The final report of the committee is expected shortly, it said.

 

“An exporter desirous of availing the benefit of the RoDTEP scheme shall be required to declare his intention for each export item in the shipping bill or bill of export,” the statement said.

The RoDTEP would be allowed, subject to specified conditions and exclusions, it said. The notified rates, irrespective of the date of notification, shall apply with effect from January 1, 2021 to all eligible exports of goods, the statement added.

Commenting on the development, Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said notification of RoDTEP rates is crucial as it would help an exporter to decide prices of their products.

He said incentives under the MEIS (Merchandise Export from India Scheme) should be extended to those goods for which the rates have to be notified from time to time.

The country’s exports declined 17.76 per cent to USD 173.66 billion during April-November this fiscal.

Source: The Financial Express

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Government outstanding debt swells 5.6% to Rs 107.04 lakh crore in Q2

Total liabilities of the government increased by 5.6 per cent to Rs 107.04 lakh crore at end-September 2020, according to official data on public debt.

At the end of the first quarter, the outstanding total debt of the government stood at Rs 101.3 lakh crore.

The 5.6 per cent quarter-on-quarter increase reflects pressure on revenue collection and rising expenditure due to the COVID-19 crisis.

Public debt accounted for 91.1 per cent of total outstanding liabilities at end-September 2020, as per the latest quarterly report on public debt management.

The weighted average yield on primary issuances of dated securities showed further moderation to 5.80 per cent in Q2 of FY21 from 5.85 per cent in Q1 FY21, it said.

During Q2 FY21, 13 tranches of auctions were held for issuance of dated securities aggregating to Rs 4,20,000 crore, which was slightly more than the pre-announced calendar because of exercising of greenshoe option, it said.

The central government issued dated securities worth Rs 3,46,000 crore in the first quarter as against Rs 2,21,000 crore in the same period a year ago.

The ownership pattern of central government securities shows that the share of commercial banks stood at 38.6 per cent at end-September 2020, lower than 40.4 per cent at end-March 2020.

"The share of insurance companies and provident funds at end-September 2020 stood at 25.3 per cent and 4.8 per cent, respectively. The share of mutual funds increased from 2.0 per cent at end-June 2020 to 2.4 per cent at end-September 2020," it said.

During Q2, yields on government securities hardened due to apprehension about the Centre further raising the borrowing from revised target of Rs 12 lakh crore amid the strained fiscal position, MPC decision to keep policy rate unchanged in its meeting held on August 4, geo-political issue with China and higher retail inflation data, it said.

The yield on 10-year benchmark security opened at 5.84 per cent at the beginning of the quarter and closed at 6.02 per cent at end of the quarter in September.

Source: The Economic Times

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Economy may add just 1 per cent in real terms during 2021-22: Report

The economy, though projected to grow 9.6 per cent in the next financial year in year-on-year growth term, may grow just 1 per cent in real terms to Rs 147.17 lakh crore as against Rs 145.66 lakh crore in 2019-20, at the 2011-12 prices, according to a report by India Ratings.

The size of the economy, as per the National Statistical Office’s data, had stood at Rs 145.66 lakh crore in 2019-20, at the 2011-12 prices.

According to the rating agency, the country’s gross domestic product (GDP) is expected to contract 7.8 per cent to Rs 134.33 lakh crore in 2020-21, but may grow 9.6 per cent to Rs 147.17 lakh crore in 2021-22.

In the first quarter of the current financial year that was impacted by the lockdown, GDP tanked 23.9 per cent year-on-year, while the Index of Industrial Production (IIP) contracted 35.9 per cent. But, in a dramatic recovery, GDP contraction was 7.5 per cent in the second quarter, while IIP contraction was only 5.9 per cent y-o-y.

“These growth numbers suggest a strong V-shaped recovery, leading to the belief that the economy is out of the woods and on the path of a strong recovery. Even a moderate improvement in 1Q and Q2 of FY22 reflects a decent annualised GDP and IIP growth due to the low base,” India Ratings said in the report.

It added that due to the low base of 2020-21, the full-year GDP growth of 2021-22 on a y-o-y basis is expected to do fairly well, and our growth projections for 2021-22 is 9.6 per cent.

However, in annual terms, 2021-22 will appear to be a good year but in actual terms, it would only be slightly better than 2019-20, “with output merely about 1 per cent higher than FY20 level at Rs 147.17 lakh crore over Rs 145.66 lakh crore in FY20”, the agency said.

This suggests that the economy will be able to just recover the lost ground in 2021-22 and surpass the 2019-20 GDP level in a meaningful way only in 2022-23.

Because the projected 2021-22 GDP growth indicates that the worst is over, it still does not indicate whether the economy has recovered the lost ground, it added.

In annual comparison, the base plays an important role in determining growth. Therefore, any abrupt or abnormal movement in the magnitude of the variable in either direction can lead to a y-o-y change, which could be more of an outlier than a normal number, said the report.

Another way of assessing the recovery is to assume it in the absence of the pandemic. “Assuming a modest GDP growth of 5 per cent each in 2020-21 and 2021-22, the economy in 2020-21 and 2021-22 would have been Rs 152.94 lakh crore and Rs 160.59 lakh crore, respectively,” the agency said.

It, however, added that based on the above calculation, even with a 9.6 per cent GDP growth, the size of the economy in 2021-22 will only be Rs 147.17 lakh crore. “To achieve Rs 160.59 lakh crore size, it will require a GDP growth of 19.5 per cent in FY22.”

Source: The Financial Express

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RoDTEP scheme on all export goods from January 1, 2021

Benefit of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme will be extended to all export goods from January 1, 2021, the finance ministry said in a statement Thursday.

Under the scheme, the embedded central, state and local duties or taxes will get refunded and credited in an exporter’s ledger account with customs. This can be used to pay basic customs duty on imported goods. The credits can also be transferred to other importers, the ministry said.

So far refunds were not taking place, adversely impacting exports. India's exports fell 8.74% in November, steeper than 5.12% dip in October at $23.52 billion.

The RoDTEP rates, conditions and exclusions under which it can be availed would be specified by the department of commerce, based on recommendation of the GK Pillai committee that are expected soon.

"The notified rates, irrespective of the date of notification, shall apply with effect from 1st January, 2021 to all eligible exports of goods," the ministry said.

Exporters will have to declare intention of availing the scheme for each item in shipping bill or bill of export.

The RoDTEP scheme will replace the popular Merchandise Exports from India Scheme as the latter has been found to violate global trade norms following a compliant from the US at the World Trade Organization.

The GK Pillai headed committee had sought data and evidence from industry that have suggested higher remission rates than 2%, 3% and 5%, payable as a percentage of realised free-on-board value as incentives under MEIS.

Source: The Economic Times

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Emergence of India as a Preferred Investment Destination

The resource requirement in a developing economy for investment usually exceeds the availability of resources that could be domestically generated. In India, the Gross Domestic Investment have historically been short of the Gross Domestic Savings by around 1.2 to 1.3 per cent of GDP on an annual basis. Countries, therefore, encourage the inflow of capital from abroad to supplement the domestic savings for a higher investment and a larger increase in production capacities. Foreign Direct Investment is considered as the most preferred route of supplementing the domestic savings as it brings along with the investment new management practices and technologies. Besides enlarging the productive capacity they also contribute to enhancement of export potential/earning of the country.

The economic liberalization, which was initiated in 1991, therefore, attempted to significantly liberalise the FDI policy regime. Over the years, India has emerged as a preferred destination for foreign investment. Besides the sustained GDP growth of economy, which has expanded market in India, the enabling environment and a transparent open policy regime has significantly contributed to the emergence of India as a preferred location. India FDI policy regime operates in a dynamic setting and has been undergoing a process of continuous review in line with requirement and investors' perception. As a part of this process, the FDI policy is being liberalized progressively on an ongoing basis in order to allow FDI in more industries under the automatic route. In the year 2000, the Government allowed FDI up to 100 per cent under automatic route for most of the activities and a small negative list was notified where either the automatic route was not available or there were limits on FDI. Since then, the policy has been gradually simplified and rationalized and more sectors have been opened up for foreign investment.

Recent changes in FDI Policy

Significant changes have been made in the FDI policy regime in the recent time to ensure that India remains increasingly attractive and investor-friendly. In February 2009, the twin concepts of "ownership" and "control" as a central principle in India's FDI regime were recognized for calculation of direct and indirect foreign investment (Press Notes 2 & 4). This ensured application of simple, homogeneous and uniform norms for obtaining Government/FIPB approval (or otherwise) for foreign investment into Indian companies and for such Indian companies in the eventuality of their making downstream investments. Press Note 3 of 2009 also brought in increased Government oversight over the transfer of ownership or control in sensitive sectors to non-resident entities. Press Note 6 of 2009 liberalized the induction of FDI in Micro and Small Enterprises by clarifying that FDI in MSE was now permitted, subject only to the sectoral equity caps, entry routes and other relevant sectoral regulations. Press Note 8 of 2009 brought all payments for royalty, lump sum fee for transfer of technology and use of trademarks/ brand names under the automatic route, without the need for the Government approval. The Government in 2010, decided through Press Note 1 of 2010, that recommendations of FIPB on proposals with total foreign equity inflow of more than Rs. 1200 crore would be placed for consideration of CCEA, as against the earlier limit of cases with a total investment of Rs. 600 crore. It also exempted a number of other categories of cases from the requirement of obtaining prior approval of the Government. Other than liberalization of the policy, simplification and rationalization of the FDI policy has also been an important component of these reforms.

Consolidation of FDI Policy

One of the major steps taken by Government on 31st March, 2010 was consolidation and release of all existing regulations on FDI as one consolidated document. This is expected to ensure that all information on FDI policy is available at one place. This is further expected to result in greater clarity and understanding of foreign investment rules among foreign investors and sectoral regulators, as also predictability of policy. The document is updated every six months. The updated second edition of the document was released on 30th September, 2010.

Stakeholder Consultations on FDI Policy

The Government has now initiated stakeholder consultations, by inviting suggestions on various aspects of FDI policy, including sectoral policies. Discussion papers on FDI in the retail and defence sectors, as also on approval of foreign/ technical collaborations in case of existing ventures/ tie-ups in India, issue of shares for considerations other than cash and FDI in Limited Liability Partnerships (LLPs) have been released for stakeholder comments. The Department of Industrial Policy and Promotion is also implementing a Plan Scheme for promotion of investment by holding Joint Commission Meetings, Organisation of Business and Investment Promotion Events, Project Management, Capacity Building, Establishment of G2B Portal/e-Biz Pilot Project, Setting up of Country focus Desks for Promoting Investment, Multi-media-audio-visual Campaign, Creation of a dedicated Investment Promotion Agency etc. The dedicated Investment Promotion Agency i.e. "Invest India" has since been launched on 23rd December 2009 to promote foreign investments in India in a focussed, comprehensive and structured manner.

India's Global Position

The outcome of the government initiatives and liberalization measures undertaken have resulted in tremendous response and growth in the FDI equity inflows to India since 2003-04, which have increased nearly thirteen-fold until the last financial year (i.e. 2009-10). In terms of international practices of calculating FDI (i.e. by taking into account re-invested earnings and other capital), the FDI inflows into India were nearly US $ 37.18 billion during 2009-10. While the FDI inflows have somewhat flattened out over the course of the last three years, the pace of inflows has been stable, including during 2009-10, at the height of the global economic slowdown. This is despite the fact that the UNCTAD World Investment Report, 2009, had noted a fall of global FDI inflows, from a historic high of 1.979 trillion in 2007 to 1.697 trillion in 2008, a decline of 14%. It may be noted that UNCTAD had subsequently predicted a fall in global FDI investment flows by 30%, from US $ 1.7 trillion in 2008 to US $ 1.2 trillion in 2009. While India was ranked 32nd in the world on FDI inflows in 2001(as per UNCTAD data), its ranking improved to the 9th position in 2009. India's ranking, in terms of FDI inflows among developing countries (as per UNCTAD data), has jumped from 13th in 2005 to 4th (in 2009). Its share of world FDI inflows has jumped from 0.78% in 2005 to 3.11 per cent in 2009.

India is today rated as one of the most attractive investment destinations across the globe. The UNCTAD World Investment Report (WIR) 2010, in its analysis of the global trends and sustained growth of Foreign Direct Investment (FDI) inflows, has reported India to be the second most attractive location for FDI for 2010-2012. According to the WIR 2010 report, the top five most attractive locations for FDI for 2009-11 are China, India, Brazil, United States and the Russian Federation. Similarly, the 2009 survey of the Japan Bank for International Cooperation, conducted among Japanese investors, continues to rank India as the second most promising country for overseas business operations.

For India to maintain its momentum of GDP growth, it is vital to ensure that the robustness of its FDI inflow is also maintained. (PIB Features)

Source: Embassy of India, Spain

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Prime Minister's Office to monitor 50 key projects worth Rs 2 lakh crore

The government has shortlisted 50 key infrastructure projects worth more than Rs 2 lakh crore for regular monitoring by the prime minister's office to ensure their early completion. The PMO has set up a monitoring group consisting of secretaries to thrash out the issues holding up these projects or causing delay.

The projects include Mumbai-Ahmedabad bullet train project, Char Dham road connectivity improvement, Delhi-Meerut expressway, redevelopment of New Delhi railway station, JNPT terminal-4 in Mumbai, phase-1 of Pune Metro Rail, Navi Mumbai International airport and 1,200-km Paradip Hyderabad Product Pipeline. PM Narendra Modi has laid the foundation stone for all these projects barring the redevelopment of New Delhi railway station which the transporter hasn't yet bid out. The bid dates have been extended in this case.

"There has been regular monitoring of the progress of these projects since these are mega projects. Some of these projects also came up in the past two Pragati meetings chaired by the Prime Minister. Many of these projects have been delayed due to various reasons including non-availability of land and green clearances," said a source who did not wish to be named.

Earlier, the PMO had sought details of projects from different ministries and departments which could be completed in 2022 when India celebrates the 75th year of independence. Sources said the government is ensuring that the projects get completed as per the revised schedules.

Source: The Economic Times

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Top 5 developments of Textile Ministry in 2020!

2020 was a year full of action for Ministry of Textiles (MoT) and some of the main developments of MoT during the year will have a long-term impact on Indian textile and apparel industry.

1. PPE: A new industry developed!

With the development of a new industry valuing at Rs. 7,000 crore and 1,100 PPE manufacturers producing a peak of 4.5 lakh units per day, India becomes the second largest PPE manufacturer in the world.

When COVID-19 was at its peak, the Ministry of Health & Family Welfare approached MoT for help in providing PPE kits to health professionals in Government hospitals. MoT took initiatives and went step-by-step in developing a new industry. Some of the measures taken in the span of just 2-3 months included: development of technical specifications and issuing guidelines to ensure adequate quality; development of 11 testing laboratories (meeting standards of MoHFW) and establishment of Central Control Room for facilitation, coordination and monitoring of overall activities round the clock during entire lockdown period.

Besides, it also appointed 200 Nodal Officers on pan-India basis to facilitate all stakeholders (manufacturers/suppliers/transporters/testing labs, etc.) – from sourcing of raw materials to the end product reaching its final destination.

2. Technical textiles and MMF got a boost

At the beginning of the year, the National Technical Textiles Mission approved a total outlay of Rs. 1,480 crore. And just few days back, it also approved PLI Scheme to 10 key sectors for enhancing India’s manufacturing capabilities and export competitiveness under ‘Aatmanirbhar Bharat’ initiative. The MoT Scheme in the name of Focus Product Incentive Scheme (FPIS) has been approved. The scheme will focus on promotion of 40 MMF apparel and 10 technical textiles lines to create 60-70 global champions. The financial outlay of Rs. 10,683 crore over a period of 5 years has also been approved.

3. Anti-dumping duty on PTA and acrylic fibre removed

ADD on purified terephthalic acid or PTA was removed on 2 February 2020, enabling MMF manufacturers to procure raw materials at globally competitive prices and in turn provide man-made fibre/filament to downstream industry at competitive prices.

During the year, the Government removed anti-dumping duty on ‘Acrylic Fibre’, a raw material for yarn and knitwear industry originating in or exported from Thailand, and imported into India. It is expected that acrylic fibre will be made available at internationally competitive prices, which will resultantly bring down the price of acrylic yarn.

4. Cotton brand launched

Brand name and logo for Indian cotton launched as “KASTURI COTTON INDIA”.  It is also pertinent to mention here that during the calendar year 2020, CCI made a record procurement of around 151 lakh bales under MSP operations, which is around 290 per cent higher as against procurement of 38.43 lakh bales during corresponding period last year.

5. Weaver, handcrafted toys sector also supported well

MoT initiated on-boarded Government e Market place (GeM) to provide wider market for handloom weavers/artisans/producers.

Apart from this, a National Action Plan for Indian Toy Story has been made with the collaboration of 14 Ministries/Dept. of Govt. of India. The need-based interventions have been sanctioned for overall development of toy industry in 13 identified handicrafts toy clusters and a National Toy Fair is proposed from 27 February to 3 March 2021.

A new scheme, namely, Mega Integrated Textile Region and Apparel (MITRA) park in 1,000+ acres of land with modern state-of-the-art infrastructure, common utilities, R&D lab, workers’ family accommodation, etc. and plug-and-play facilities is under consideration.

In another important decision, MoT decided to withdraw the name of Government nominees from all Textiles Export Promotion Council.

Source: Apparel Online

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Delays in implementing Budget announcements a matter of serious concern: Cabinet secretariat

The cupboard secretariat has written to all ministries about lengthy delays within the implementation of many funds bulletins which it referred to as a matter of “severe concern”.

ET has seen the letter, addressed to the secretaries and dated December 28.

“Ministries are required to assessment the matter and take instant steps. Steps may be taken to make sure that tangible outcomes are seen inside six months from the date of funds announcement,” the letter mentioned, without mentioning these particular funds bulletins whose implementation was discovered to be delayed.

The letter famous that the cupboard secretariat had on February 18 this 12 months entrusted sectoral teams of secretaries with the duty of monitoring the implementation of funds bulletins pertaining to their sectors. The Division of Financial Affairs and a monitoring group, constituted on the instructions of the Prime Minister, are additionally individually reviewing the progress of the initiatives and schemes contained within the funds bulletins, it mentioned.

“Regardless of the rigorous monitoring, it’s noticed that the implementation of those bulletins by ministries and departments, in lots of circumstances, has been inordinately delayed. It is a matter of significant concern,” the letter mentioned, stressing upon instant assessment and strict compliance of the newest directions.

The sectoral teams of secretaries, which put together the five-year imaginative and prescient paperwork, got the monitoring duty quickly after the presentation of the 2020-21 Union funds. This was achieved to make sure that varied preparatory steps reminiscent of formulation of proposals in addition to value determinations and approvals by competent authorities are accomplished by ministries expeditiously in order that the “implementation can start from the start of the monetary 12 months”. Conferences of the sectoral teams had been additionally held.

Final month, cupboard secretary Rajiv Gauba had ticked off ministries for lengthy delays in drafting guidelines for legal guidelines enacted by Parliament, saying such delays adversely affected the well timed implementation of Acts and “defeat the aim for which these are legislated”.

In a letter written to all Secretaries in November, he had requested for a radical assessment of all legislations enacted since Could 2014 through which the principles and laws had been but to be notified. He additionally instructed a brand new detailed normal working process by which guidelines could be notified inside two months of the enactment of a legislation, and formulation of a motion plan.

Source: The Economic Times

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INTERNATIONAL

Britain says decision to suspend U.S. tariffs already paying off

Britain said on Thursday its decision to suspend retaliatory tariffs against the United States was already bearing fruit after it was spared in a new round of U.S. tariff increases which hit French and German produce.

Britain said earlier this month it would use its new-found freedom outside the European Union to diverge from common EU trade policy towards the United States, deciding to unilaterally suspend tariffs relating to a 16-year dispute on aircraft subsidies.

The U.S. government on Wednesday said it would raise tariffs on certain EU products, including aircraft components and wines from France and Germany, arguing that the EU had unfairly calculated its own tariffs.

“The UK wasn’t hit because we suspended tariffs and brought the U.S. to the negotiating table,” a British official said. “(This) shows we are making the right strategic decisions.”

The United States and EU have already imposed tariffs on billions of dollars of each others’ goods over a row about state subsidies provided to civil aviation firms Boeing and Airbus. Those tariffs remain in place.

British trade minister Liz Truss has repeatedly spoken out against the measures, earlier rounds of which have hit British exports such as Scotch whisky. Germany has also recently called for a quick resolution to the dispute.

The British decision to suspend tariffs on U.S. goods from Jan. 1, once Britain fully leaves the EU, upset European planemaker Airbus and exposed a growing rift between the UK and Europe over aerospace investment, industry sources and analysts said.

Source: Reuters India

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A divided UK exits EU's orbit, enters Brexit unknown

Brexit, in essence, takes place at the strike of midnight in Brussels, or 2300 GMT, when the United Kingdom leaves de-facto membership that continued after it formally left the bloc on January 31.

For five years, the frenzied gyrations of the Brexit crisis have dominated European affairs, haunted the sterling markets and tarnished the United Kingdom's reputation as a confident pillar of Western economic and political stability.

Cast by supporters as the dawn of a newly independent "global Britain", Brexit has weakened the bonds that bind together England, Wales, Scotland and Northern Ireland into a $3 trillion economy.

"Brexit is not an end but a beginning," Prime Minister Boris Johnson, 56, told parliament just hours before it approved his EU trade deal. Grinning, he later quipped to reporters that he had read the deal he had signed.

Johnson said there would be no bonfire of regulation to build a "bargain basement Dickensian Britain" and assured Europe that the United Kingdom would remain the "quintessential European civilization".

But the face of the Brexit campaign has been short on detail of what he wants to build with the United Kingdom's new "independence" - or how to do it while borrowing record amounts to pay for the Covid-19 crisis.

Brexit

In the June 23, 2016, referendum, 17.4 million voters, or 52%, backed Brexit while 16.1 million, or 48%, backed staying in the bloc. Few have changed their minds since. England and Wales voted out but Scotland and Northern Ireland voted in.

The referendum showed a United Kingdom divided about much more than the European Union, and has fuelled soul-searching about everything from secession and immigration to capitalism, empire and modern Britishness.

Leaving was once the far-fetched dream of a motley crew of “eurosceptics” on the fringes of British politics: the UK joined in 1973 as “the sick man of Europe” and two decades ago British leaders were arguing about whether to join the euro.

For supporters, Brexit is an escape from a doomed German-dominated project that had fallen far behind the world's leading powers of the United States and China.

Opponents say Brexit is a folly that will weaken the West, torpedo what is left of Britain’s global clout, undermine its economy and ultimately leave it a less cosmopolitan set of islands.

United kingdom?

After the United Kingdom leaves the Single Market or the Customs Union on Thursday, there is almost certain to be some disruption at borders. More red tape means more cost for those importing and exporting goods across the EU-UK border.

Port of Dover expects volumes to drop off in early January. The most worrisome period, it says, will be in mid- to late January when volumes pick up again.

Walking away from almost half a century of membership means change to everything from pet passports and driving license rules for the British in Europe to data rules.

Support for Scottish independence has risen, partly due to Brexit and partly due to Covid-19, threatening the 300-year-old political union between England and Scotland.

Scottish leader Nicola Sturgeon has said an independence referendum should take place in the earlier part of the devolved parliament's next term, which begins next year.

Source: The Dhaka Tribune

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Lone bright spot: FDI equity flows up 21% in April-Oct

In a silver lining for the economy, foreign direct investment (FDI) equity flows increased 21 per cent to $35.33 billion in the April-October 2020-21 period compared to the same period last year, according to figures shared by the Department of Policy for Investment and Internal Trade (DPIIT).

The figures indicate that FDI equity flows in October were around $5.3 billion as the inflow in April-September 2020 was reported at $30 billion. This was higher than the $2.9 billion recorded the previous month, but lower than the unusually high FDI equity investment of $17.48 billion in August 2020.

During the first seven months of 2020-21, the total FDI inflow increased 11 per cent to $46.82 billion.

“FDI has played an important role in the process of globalisation and is a major driver of economic growth and a source of non-debt finance for the economic development of India. It has been the endeavour of the government to put in place an enabling and investor friendly FDI policy,” a note listing the highlights of DPIIT during 2020 stated.

The standard operating procedure has been amended for ease of processing FDI proposals and is uploaded on the government’s website. As many as 26 FDI applications marked to DPIIT had been disposed of in 2020, it added.

A total 84 plots admeasuring nearly 554.73 acres have been allotted to companies with investment to the tune of over Rs 16,100 crore including investors like HYOSUNG (South Korea), NLMK (Russia), HAIER (China), TATA Chemicals and AMUL so far, the note pointed out. As many as nine companies have also started their commercial production, it added.

Project Development Cells have now been established in 29 ministries/departments of the government, headed by respective Joint Secretary-level nodal officers, it said.

Source: World Best News

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Trump push on $2K checks flops as GOP-led Senate won’t vote

Senate Majority Leader Mitch McConnell all but shut the door on President Donald Trump’s push for $2,000 COVID-19 relief checks, declaring Congress has provided enough pandemic aid as he blocked another attempt by Democrats to force a vote.

The GOP leader made clear Wednesday he is unwilling to budge, despite political pressure from Trump and even some fellow Republican senators demanding action. Trump wants the recent $600 in aid increased threefold. But McConnell dismissed the idea of bigger “survival checks” approved by the House, saying the money would go to plenty of American households that just don’t need it.

McConnell’s refusal to act means the additional relief Trump wanted is all but dead.

“We just approved almost a trillion dollars in aid a few days ago,” McConnell said, referring to the year-end package Trump signed into law.

McConnell added, “if specific, struggling households still need more help,” the Senate will consider “smart targeted aid. Not another firehose of borrowed money.”

The showdown between the outgoing president and his own Republican Party over the $2,000 checks has thrown Congress into a chaotic year-end session just days before new lawmakers are set to be sworn into office.

It’s one last standoff, together with the override of Trump’s veto of a sweeping defense bill, that will punctuate the president’s final days and deepen the GOP’s divide between its new wing of Trump-styled populists and what had been mainstay conservative views against government spending.

Trump has been berating the GOP leaders, and tweeted, “$2000 ASAP!”

President-elect Joe Biden also supports the payments and wants to build on what he calls a “downpayment” on relief.

“In this moment of historic crisis and untold economic pain for countless American families, the President-elect supports $2,000 direct payments as passed by the House,” said Biden transition spokesman Andrew Bates.

The roadblock set by Senate Republicans appears insurmountable. Most GOP senators seemed to accept the inaction even as a growing number of Republicans, including two senators in runoff elections on Jan. 5 in Georgia, agree with Trump’s demand, some wary of bucking him.

Treasury Secretary Steven Mnuchin said the $600 checks would begin to go out Wednesday. Congress had settled on smaller payments in a compromise over the big, year-end COVID-19 relief and government funding bill that Trump reluctantly signed into law. Before signing, though, Trump demanded more.

For a second day in a row, Senate Democratic leader Chuck Schumer tried to force a vote on the bill approved by the House meeting Trump’s demand for the $2,000 checks.

“What we’re seeing right now is Leader McConnell trying to kill the checks — the $2,000 checks desperately needed by so many American families,” Schumer said.

With the Georgia Senate runoff elections days away, leading Republicans warned that the GOP’s refusal to provide more aid as the virus worsens could jeopardize the outcome of those races.

Georgia’s GOP Sens. David Perdue and Kelly Loeffler are trying to fend off Democrats Jon Ossoff and Raphael Warnock in runoff elections that will determine which party has the Senate majority. The two Republicans announced support for Trump’s call for more generous checks.

“The Senate Republicans risk throwing away two seats and control of the Senate,” Newt Gingrich, the former congressional leader, said on Fox News.

McConnell has tried to shield his divided Republicans from a difficult vote. On Wednesday he suggested he had kept his word to start a “process” to address Trump’s demands, even if it means no votes will actually be taken.

“It’s no secret Republicans have a diversity of views,” he said.

Earlier, McConnell had unveiled a new bill loaded up with Trump’s other priorities as a possible off-ramp for the stalemate. It included the $2,000 checks more narrowly targeted to lower-income households as well as a complicated repeal of protections for tech companies like Facebook or Twitter under Section 230 of a communications law that the president complained is unfair to conservatives. It also tacked on the establishment of a bipartisan commission to review the 2020 presidential election Trump lost to President-elect Joe Biden.

If McConnell sets a vote on his bill, it could revive Trump’s priorities. But because the approach contains the additional tech and elections provisions, Democrats and some Republicans will likely balk and it’s unlikely to have enough support in Congress to pass.

No additional votes on COVID-19 aid have been scheduled at this point. For McConnell, the procedural moves allowed him to check the box over the commitments he made when Trump was defiantly refusing to sign off on the big year-end package last weekend. “That was a commitment, and that’s what happened,” he said.

Liberal senators, led by Bernie Sanders of Vermont, who support the relief boost are blocking action on a defense bill until a vote can be taken on Trump’s demand for $2,000 for most Americans.

Sanders thundered on the floor that McConnell should call his own constituents in the GOP leader’s home state of Kentucky “and find out how they feel about the need for immediate help in terms of a $2,000 check.”

Republican Sens. Josh Hawley of Missouri and Marco Rubio of Florida, among the party’s potential 2024 presidential hopefuls, also pushed in the president’s direction. Hawley is also leading Trump’s challenge Jan. 6 to the Electoral College result tally in Congress.

Other Republicans panned the bigger checks, arguing during a lively Senate debate that the nearly $400 billion price tag was too high, the relief is not targeted to those in need and Washington has already dispatched ample sums on COVID-19 aid.

Sen. Pat Toomey, R-Pa., tweeted that “blindly borrowing” billions “so we can send $2,000 checks to millions of people who haven’t lost any income is terrible policy.”

Considered a longshot, Trump’s demand gained momentum at the start of the week when dozens of House Republicans calculated it was better to link with most Democrats than defy the outgoing president. They helped pass a bill raising the payments with a robust two-thirds vote of approval.

As Trump’s push fizzles out, his attempt to amend the year-end package — $900 billion in COVID-19 aid and $1.4 trillion to fund government agencies through September — will linger as potentially one last confrontation before the new Congress is sworn in Sunday.

The COVID-19 portion of the bill revives a weekly pandemic jobless benefit boost — this time $300, through March 14 — as well as the popular Paycheck Protection Program of grants to businesses to keep workers on payrolls. It extends eviction protections, adding a new rental assistance fund.

Americans earning up to $75,000 will qualify for the direct $600 payments, which are phased out at higher income levels, and there’s an additional $600 payment per dependent child.

Source: New Delhi Times

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To deal with an aggressive China, its opponents must hang together

China’s year of wolf warrior diplomacy is ending with a spate of sanctions. Beijing informally suspended visas for all Indians in September. Australia has been publicly battered, with China imposing barriers/bans on billions of dollars of exports. The world should not be surprised. China imposed similar sanctions against Japan and South Korea in the form of a rare earths ban and the expulsion of a retail chain. Go further back, and the Dragon’s tactics include European countries, Mongolia, and The Philippines. Trade spats are a common across the world, but Beijing’s actions are imposed in retaliation to sovereign political or strategic decisions. China was not responding to someone else’s trade actions, it flexed economic muscle to force another country to kowtow on an aspect of foreign policy.

China’s return on investment on these moves is mixed, but it is unlikely to change tack. Ultimately, Beijing carries out such policies because it faces no retaliation. If the Quadrilateral Security Dialogue is to develop some heft, it should consider how its members can assist each other in diversifying away from the Chinese market as well as softening the damage caused by Chinese trade sanctions. The Japan-led Supply Chain Resilience Initiative is a step in the right direction. That China’s blockade of Australian coal has led to hundreds of Indian sailors being stranded in China is a reminder that its opponents need to band together.

Source: The Hindustan Times

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