With India's outbound shipments contracting for the eighth month in a row, exporters expressed concern over the continuous slide, saying government needs to immediately step in and chalk out a strategy to give them a competitive edge. "Continuous fall in exports is a matter of great concern and the troubles may even increase in the coming months since the global demand remains quite subdued, with the exception of the US markets," engineering exporters' body EEPC India Chairman Anupam Shah said. "The government needs to immediately step in and chalk out a strategy for giving a competitive edge to the Indian exporters," he added.
Contracting for the eighth month in a row, India's exports were down 10.3 per cent in July to $23.13 billion, hit by global slowdown and dip in crude oil prices which impacted the value of petroleum products. In July 2014, the merchandise exports had amounted to $25.79 billion. The last time exports registered a positive growth was in November, when shipments expanded at a rate of 7.27 per cent. However, exporters' body FIEO President S C Ralhan said that going by increase in container traffic in first fortnight of August, he expects outbound shipments to move northwards for the month of August and subsequent months. Moreover, Ralhan cautioned the exporters to guard themselves against excessive volatility and hedge their currency risk rather than get swayed away by depreciation of Rupee. "The depreciation of yuan, if happen further, may impact expected growth in exports from November," he said.
Imports, too, declined by 10.28 per cent to $35.94 billion in July this year due to fall in oil imports, leaving an 8-month high trade deficit of $12.81 billion, according to the data released by the Commerce Ministry. Compared to July last year, when it was $14.27 billion, the deficit has narrowed.
SOURCE: The Economic Times
The state government has in-principle accepted a new textile policy that moots Rs 80,000 crore investment in five years in the sector which will be developed around the concept, 'fabric to fashion'. The designer of the policy, Ichalkaranji based BJP MLA Suresh Halwankar said for the first time such an approach is taking place where the cotton producing state will also become producer of ready-to-use cloths and garments. Currently, the clothing industry from cotton to fabric to ready-to-wear cloths is scattered across the country. The transportation expense is increasing the cost of the product while delivery time is also very high. Hence the new policy is mooted.
Halwankar made a presentation in Mumbai before chief minister Devendra Fadnavis, textile minister Chandrakant Patil, minister of state for textile Vijaykumar Deshmukh, minister of power Chandrakant Bawankule and secretaries from the respective departments. The government has accepted the proposal in-principle and a meeting is scheduled next week with the departments concerned regarding drawing a roadmap to implement the policy. Halwankar told TOI: "There are several textile industries and parks across the country, but nowhere you will get all types of industrial units that need to convert the cotton into usable clothes. The Vidarbha region produces cotton but ginning mills are in Marathwada, while primary processing is done in Ichalkaranji. Then it goes to either Bhiwandi (Mumbai) or Rajasthan or Kanpur. Sometimes it goes to Tamilnadu as well and finally it goes to Bangladesh for stitching purpose to get the final product that can be sold to retail customers." The new policy aims to change this situation, Halwankar said. "The state wants to process its cotton completely here and the final ready-to-use cloths will be produced in the state only. The government will identify locations and acquire land for setting up all types of units and provide financial assistance in the form of subsidy with low interest. The power ministry will ensure sufficient power supply, while the labour ministry organizes skill development sessions and workshops."
Minister Chandrakant Patil said the new proposal is very ambitious because textile is the second-largest employment-generating enterprise, the first being agriculture. The policy has suggested identification of nine locations where cotton can be supplied to get the final product out of it. It will be called textile hub, where spinning, yarn making, warping, sizing and stitching units will come up and generate employment. Already, the agriculture sector in the state has surplus labour force. This surplus labour force can be used in the textile mills near the villages. It will provide an assured workforce for the textile hub. The women self-help groups also can get jobs in these hubs, Halwankar said. The policy states that Maharashtra produces 56 lakh bales of cotton, of which only 25 lakh is processed in the state. The policy proposes to increase the existing swindles in textile units to 50 lakh from 12 lakh. This will enable processing of every cotton bale in the state itself. It alone requires Rs 50,000 crore, Halwankar said. The rest of the investment will go into land acquisition, training, and other machinery and facility creation. Every hub would need around 100 acres of land at one location. "The industry will contribute Rs 4,000 crore in the form of sales, excise and value added tax to the state coffers. If you start calculating the cost of other consumptions, including rise in the purchase capacity of the employed class, it will be a major push to the state's economy. The benefits will percolate to all sectors of the economic strata. Even farmers will earn better because processing units can directly buy from them instead of through middlemen," he added.
A lot of foreign direct investment is going to be involved in it, because with such a comprehensive policy, the state can attract major world manufacturers for either setting up their own units or outsourcing it. This will benefit the existing units as well, he said. The proposal also mentions a clear stand on eco-friendly disposal of chemicals and waste. Halwankar said, "The state environment secretary gets everyday details of each common effluent treatment plants across the state. Such CETPs will be set up at every hub for proper disposal of waste, meeting the international norms, he added. Satish Koshti, president of Ichalkaranji Powerloom Weavers' Association meanwhile said the policy has come a little late. "It should have been introduced earlier. Some units will suffer because either these units will have to shift to a hub or other allied textile units will have to be set up in Ichalkaranji. We will support the policy for its comprehensiveness and provide technical guidance when required."
SOURCE: The Times of India
Polyester manufacturer Indo Rama Synthetics (India) Ltd recorded a 77 per cent drop in its net profit to Rs. 4.91 crore in the first quarter of 2015-16 against Rs. 22.05 crore earned in the same period of the previous year. The lower profit is mainly due to a fall in polyester prices and a drop in international demand, according to the company officials. “Volume-wise our sales have gone up by five per cent during the quarter. The lower profits are mainly due to a drop in prices of our product which is largely because of a fall in international oil prices. This will persist in the next quarter as well, but net sales figures are likely to improve from the third quarter,” OP Lohia, Chairman & Managing Director, told BusinessLine .
The company reported lower net sales of Rs. 627.92 crore in the April-June 2015-16 period against Rs. 705.27 crore in the corresponding period of the previous year. The sales volume for the quarter increased to 79,088 tonnes against 75,573 tonnes in the corresponding period of the last financial year, reflecting an increase of 4.65 per cent on quarter basis. While domestic sales increased during the first quarter of the fiscal, it was exports that took a big hit. “International demand is under pressure. Exports are coming down and impacting our margins,” Lohia pointed out. For the quarter ended June 30, 2015, the company’s net revenues stood at Rs. 642.48 crore ( Rs. 718.47 crore). The company’s EBIDTA (earnings before interest, taxes, depreciation, and amortization) in the first quarter was Rs. 32.55 crore ( Rs. 43.67 crore). With the drop in domestic cotton prices “bottoming-out’’, Indo Rama is hopeful of higher demand for its synthetic items in the coming months.
SOURCE: The Hindu Business Line
Driven by a notable growth in its viscose staple fibre (VSF) business, Kumara Mangalam Birla led Grasim Industries reported a 15 per cent year over year rise in consolidated revenues in the three months to June 30, 2015. In a BSE filing, Grasim said its turnover for the first quarter of fiscal 2016 grew 15 per cent year on year to Rs 1,657 crore driven by sales in all its three business units, particularly the VSF business. In the three months to June 30, 2015, the VSF division posted revenue of Rs 1254.07 crore, up 15 per cent from Rs 1094.03 crore in the same quarter of last fiscal. “VSF sales were driven by higher sales volume at 103,000 metric tons, up 19 per cent over the first quarter of fiscal 2015,” Grasim added. EBIDTA for the division surged 72 per cent to Rs 139 crore coming from expanded volumes and a drop in raw material costs like pulp and other input costs.
Grasim was able to achieve capacity utilisation of 82 per cent at its newly commissioned Vilayat plant in Gujarat in the quarter. "Volume growth would have been higher, had there been no plant stoppage at the Nagda unit for two months due to the water shortage, which restarted operations on June 22, 2015,” it informed. The company added further that prices of the VSF business can probably be influenced by developments in the Chinese VSF industry, mainly from restart of operations at some of the shut plants. Chemical business sales soared 17 per cent from almost doubling of Epoxy volumes which came from ramping up plant utilisation. But, caustic soda sales volumes remained unchanged at 98,000 tons. EBITDA for the chemical business rose 3 per cent year on year to Rs 94 crore in the first quarter of 2015.
The scheme of amalgamation of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim has been approved by the respective equity shareholders and creditors of the company and ABCIL. The regulatory approval of the scheme from Competition Commission of India and approvals of the High Courts of Madhya Pradesh and Jharkhand are in process. Post amalgamation of ABCIL, the company's production capacity of caustic soda will increase from 452 KTPA to 804 KTPA. Revenue from other segments, which constitute mainly textiles, was Rs 136.65 crore compared with Rs 148.57 crore in the same period of last fiscal. Its expenditure for the first quarter of fiscal 2016 reached Rs 7,585.05 vis-à-vis Rs 7,184.58 from the quarter ended June 30, 2014.
SOURCE: Fibre2fashion
Devaluation of the Chinese currency yuan is a serious issue and could lead to a situation where China dumps its goods into India, Union Minister of State for Commerce and Industry (Independent Charge) Nirmala Sitharaman has said. The Centre is taking all steps to control this and to safeguard the interests of Indian exporters and manufacturers, she added. “China's yuan is definitely a very serious issue, it can lead to a situation where China will push more of its goods into markets like India. The ministry is working to get the situation changed to improve the exports,” Sitharaman said. She added that the ministry is aware that exports are down and with the yuan devaluation exports from India will face an even greater challenge. “I can assure the Indian manufacturers that we shall take every step to protect the Indian manufacturing sector, every step to stop dumping of goods into India. We shall safeguard our manufacturing interest,” said Sitharaman. “Dumping will not be entertained, wherever there is an artificial price reduction, which is what happening through China now, we will make sure safeguard clauses are invoked,” the minister added.
The Chinese government has allowed the yuan to fall about 4% against the US dollar last week. “Chinese currency can become a reserve currency, probably it is one of the reason they aretrying to open it up for market price fixation,” she said. The government is monitoring several sectors that might be affected by the yuan devaluation and talking to various industry bodies on the issue, Sitharaman added. Indian exports, the minister said, are down 6% as global demand is coming down. European countries, which are one of the major markets for Indian exporters, are stagnated and issues related to euro and Greece are impacting the region.
SOURCE: The Business Standard
India will not allow China to dump products here, said Commerce Minister Nirmala Sitharaman reacting to industry concerns following the devaluation of the yuan. Devaluation of the yuan over the past few days is a serious issue that could lead to dumping of cheap Chinese products in to India. However, dumping of Chinese products will not be entertained, she said. “I am conscious that exports are falling. With this devaluation of yuan, definitely our exports are going to face greater challenge. Our Ministry is working to get the situation changed to improve exports,” she told newspersons. “We assure manufacturers that every step will be taken to stop dumping of Chinese goods into India,” Sitharaman said. Early last week, the Chinese government allowed yuan to decline in value by about 4 per cent against the US dollar. This makes Chinese exports cheaper. Indian exports are dwindling and lot of Chinese goods are coming into India. The Commerce Ministry is doing a sector-wise analysis and monitoring the situation. “Where we think there is a reasonable basis for us to feel that dumping is happening, we are ready to take action,” she said. Globally there are only four currencies that are exchanged and China wants its currency to be internationally acceptable. “Chinese currency can become a reserve currency and it could be one of the reasons that they are trying to open it up for market price fixation for their currency and removing it from the controls of the Chinese government,” she said. On the decline in Indian exports, the Minister said this was mainly due to lack of demand in international markets. European markets are yet to recover from the Greece effect, she said.
SOURCE: The Hindu Business Line
The rupee is expected to weaken further this week, due to dollar buying by importers. There is also market concern that the yuan's devaluation would lead to India following a strategy of competitive devaluation. Last week, the rupee fell to nearly a two-year low, breaching 65 to a dollar. "This week, the trading range will be between 64.50 and 65.60, and the bias is more towards weakening," said the head of treasury of a state-run bank. On Friday, it ended at 65.01 from Thursday's 65.11. It had opened at 65.18 and during intra-day trade, touched a low of 65.31. Government bond yields are expected to stay range-bound. "The yield on the 10-year bond might trade in the 7.7-7.8 per cent range," said a trader. Consumer Price Index inflation eased to 3.78 per cent in July, compared with 5.4 per cent a month ago. On Friday, a day after this data was released, the yield on the 10-year benchmark bond ended at 7.75 per cent from the previous close of 7.74 per cent.
SOURCE: The Business Standard
With both Wholesale Price Index (WPI) and Consumer Price Index (CPI) hitting historic lows for July, Finance Minister Arun Jaitley renewed his pitch for further policy rate cuts by the RBI to push economic growth. “We all know the relationship between inflation and interest rates,” Jaitley told reporters, when asked if he expects the central bank to cut rates on the back of the two favourable inflation prints in the last few days. On Friday, the WPI-based inflation for July came in at (-) 4.05 per cent — the ninth straight month of contraction, confirming the deflationary trend in the economy. WPI inflation for June stood at (-) 2.4 per cent. The latest WPI print follows the record low July CPI inflation of 3.78 per cent released a few days ago. “Inflation is under control. WPI inflation at (-) 4.05 per cent is a positive sign. This speaks of the stability of the economy we are in. All economic indicators, including manufacturing and IIP, are encouraging. Indirect tax collections are also very encouraging,” Jaitley said. The July WPI print cheered the stock market as it strengthened the expectations that the Reserve Bank could go in for an out-of-turn rate cut. Chief Economic Advisor Arvind Subramanian said the latest WPI, CPI and other data, such as bank deposits and gold imports, point to a big structural shift in the underlying process of inflation, which is very encouraging.
Yuan devaluation
On the recent devaluation of the Chinese yuan and its impact on the rupee, Subramanian said that this should be seen as a “temporary adjustment”. The decline in WPI for July was largely due to a fall in food articles inflation and commodity prices. Manufactured products — which has a weight of 65 per cent in the WPI basket — declined to (-) 1.47 per cent from 0.77 per cent drop in the previous month. Meanwhile, food articles inflation declined to (-) 1.16 per cent against 2.2 per cent. While vegetable price inflation contracted 24.52 per cent against contraction of 7.07 per cent in June, the main concern was on the pulses front, which saw 35.7 per cent increase during the month under review. The CPI — which is the main index focused by the central bank — too had fallen sharply in July, raising expectations that the RBI could move even before September 29, which is the next date of Monetary Policy review.
SOURCE: The Hindu Business Line
Expansion of Indian banks network in CLMV - Cambodia, Laos, Myanmar and Vietnam - countries would help in enhancing trade and investment relations with these nations, a report has suggested. "No amount of commercial and economic linkages especially in the framework of regional value chains would be possible without enhancing the number of Indian banks present in Cambodia in their full-fledged form rather than just being reprensentative offices," the government sponsored report said. The Commerce and Industry Ministry report - "India's Strategy for Economic Integration with CLMV" was prepared by think tank Research and Information System for Developing countries (RIS). The report also recommended for creation of a dedicated web portal on India-CLMV economic linkages.
India is focusing on these four countries as they are one of the fastest growing economies in the region and holds huge potential for investments. "The under development of CLMV is a developmental opportunity for India...the present levels of economic linkages, including trade and investment, between the two remains weak and low," the report said. It said that India must engage with these four countries as India-CLMV could be an important bedrock for RCEP (regional cooperation economic partnership) negotiations where India can get support from these countries. "We need to adopt an integrated approach. For this to happen, trade in goods, trade in services and especially India's outward FDI to CLMV region need to have integrated policy responses whereby inter linkages across these are well recognised," it said. Further, it said that India must economically integrate with these countries due to enormous comparative advantage.
SOURCE: The Economic Times
Ahead of his talks with the Emirati leadership, Prime Minister Narendra Modi has said the Gulf region is vital for India’s economic, energy and security interests and he wants to see the UAE as the foremost partner in trade and countering terrorism. Noting that he has begun his regional engagement with the UAE which reflects the importance that he attaches to the country, Modi said he would like to see a truly comprehensive strategic partnership evolve between the two countries. “I want to see the UAE as our foremost trade and investment partner. We would build regular and effective cooperation in a full range of security challenges. Our armed forces would engage with each other more. We will work together more closely in international forums and in addressing regional challenges. There are no limits to our relationship,” Modi said.
Asserting that terrorism poses a grave danger to humanity, he said all those countries who believe in humanity, must stand together without delay as it was extremely necessary to challenge the forces of terrorism. “As far as the Indian community is concerned, the languages that are spoken in India, are all spoken in the UAE! In a manner of speaking, the UAE is a ‘Mini India’. The way the two communities work together represents a special bond,” the Prime Minister said. He said the Indian community was not only contributing to the progress and development of the host country, but also participating in the economic development of India through their remittances.
SOURCE: The Financial Express
Seeking to provide "new impetus" to their economic relations, Canada and India are jointly working to finalise a bilateral foreign investment agreement to accelerate investments, Canada's Defence Minister has said. Jason Kenney, Canada's Minister of National Defence and Minister for Multiculturalism, said the Foreign Investment Protection and Promotion Agreement will benefit investors from both the countries by providing "greater certainty" for Canadian firms with existing investments in India. "It would also promote Canada as a destination for foreign investment, opening up markets for Indian corporations looking for new opportunities abroad," Kenney said while addressing a reception hosted by the Indian Consulate here to commemorate the country's 69th Independence day. He said the agreement would promote economic relations between the two countries and accelerate two-way investments. "The agreement, designed to protect investors by defining their legally binding rights and obligations, would give new impetus to Indo-Canada economic relations," he said. It would bring a new "legal regime" that would boost bilateral investment, although some issues like taxation and expropriation would be resolved soon, Kenney said.
Canada's Prime Minister Stephen Harper and Ontario Premier Kathleen Wayne in their greeting messages have commended contributions made by India and Canada in economic development of Canada and strengthening bilateral relations. Seeking Canadian investment, Akhilesh Mishra, India's Consul General said India was undergoing a historic phase of transformation. Through digital transformation, rapid urbanisation and massive infrastructure development India is poised to achieve eight to nine per cent growth every year at a time when most of the economies were slowing down, Mishra said. "When major economies are confronted with prospect of shrinking labour population, India's young demography will witness expanding labour force over next fifty years and account for 25 per cent of global skilled manpower," he said. He said India had one billion mobile phones, 250 million internet users and provides a great opportunity for Canadians to invest in the country. "Prime Minister Narendra Modi has launched ambitious mission of developing 100 smart cities, addition of 100,000 mega watt of solar power and 60,000 mega watt of wind power by 2022, providing vocational training to 400 million people, building general industrial corridors and high seed trains," Mishra said. These initiatives offer huge business opportunities for Canada and other partners, he added.
SOURCE: The Economic Times
Imports through Kochi Port may be costlier from September following the Tariff Authority for Major Ports (TAMP) order to reduce the dwell time for import cargo. The shipping community here has received a notification from TAMP to reduce the current free period from seven days to five days from September 1 and later to three days with effect from December 1. The reduction in free time, according to the community, will force the Exim trade to pay demurrages if the cargo is not evacuated from the terminal within the stipulated time.
The notification will bring difficulties in clearing import containers besides financial burden in the form of additional costs, said Prakash Iyer, former president of the Cochin Steamer Agents Association. The move will increase the storage cost to importers as they will have to pay an additional amount in the range of Rs. 1,600 for 20 ft containers and Rs. 3,200 for 40 ft, he said. TAMP’s decision to reduce the dwell time for import containers is aimed at easing congestion experienced at many of the major ports.
Situation in Kochi
However, the port users in Kochi were of the view it would not be viable to implement it in VaIlarpadam terminal given its underperformance and sufficient unutilised space availability. They argue that the 7-day free time for port storage charges should instead be used as a marketing tool to attract more cargo, as the terminal is yet to reach the one million TEU capacity. “The move makes sense in congested ports, but in Kochi, where the terminal is operating at one-third of its capacity, it defies logic,” Iyer added.
Official stance
However, Kochi Port officials maintained that the reduction in dwell time would reduce the time of physical receipt of imported goods by the consignee. Moreover, Kochi Customs has to achieve the 72-hour target for dwell time import cargo set by Central Board of Excise and Customs for all Customs formations in the country. The average dwell time in Kochi is now 15.36 days.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 48.85 per barrel (bbl) on 14.08.2015. This was lower than the price of US$ 49.52 per bbl on previous day of 13.08.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3181.11 per bbl on 14.08.2015 as compared to Rs 3214.84 per bbl on 13.08.2015. Rupee closed weaker at Rs 65.12 per US$ on 14.08.2015 as against Rs 64.92 per US$ on 13.08.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 14, 2015(Previous trading day i.e. 13.08.2015) |
Pricing Fortnight for 16.08.2015 (July 30 to Aug 12, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
48.85 (49.52) |
50.68 |
|
(Rs/bbl |
3181.11 (3214.84) |
3243.52 |
|
|
Exchange Rate |
(Rs/$) |
65.12 (64.92) |
64.00 |
SOURCE: PIB
As negotiations for Regional Comprehensive Economic Partnership (RCEP) agreement progress, ministers of 16 member countries, including India and China will meet in Kuala Lumpur on August 24 to finalise the modalities of the pact. "The talks are progressing very well. The 9th round of talks for RCEP agreement was recently concluded in Myanmar. Now in the next ministerial level meeting, the modalities would be finalised," a senior government official told PTI. The deal aims to cover goods and services, investments,economic and technical cooperation, competition and intellectual property. Finalisation of modalities includes exchange of offers in goods, services and investments. Under these offers, the member countries are expected to disclose the number of products whose duties would be reduced to zero and goods which would not have any duty cut under the pact. Similarly in services, the RCEP members are likely to identify sectors in which the countries can consider signing mutual recognition agreements (MRAs). MRAs pave the way for recognition of professional body of one country by the other. Regulatory bodies of various professional services like engineering, accountancy and architecture are encouraged to enter these pacts. The 16 countries account for over a quarter of the world economy, estimated to be more than USD 75 trillion. RCEP negotiations were launched in Phnom Penh in November 2012.
SOURCE: The Economic Times
Bangladesh has earned $527.16m from its exports to Indian market in FY 2014-15 a rise by 15.45% compared to $456.63m in the last fiscal year as some products including textiles got duty and quota-free access, according to Export Promotion Bureau data. Readymade garment export to the neighbouring country also increased by 8.31% to $104.25m in the year compared to $96.25m in the previous year. Bangladesh has to compete with India’s local producers as they made same products. Besides, the Indian government patronizes local industry to boost economic growth, which caused slow RMG export growth to the neighboring country, said Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue. He stressed on improving communication between Bangladesh’s RMG manufacturers and Indian retailers to increase bilateral trading. Besides this, he urged the government to negotiate with its Indian counterpart to lift the countervailing duty on the RMG products.
BGMEA vice president Shahidullah Azim said that RMG export growth to the Indian market was not satisfactory. Lilliput, the largest kids’ wear brand in India, did not pay $5.5m to 22 garment exporters of Bangladesh and this also discouraged RMG exports to India, which led to the slow growth. The government needs to take measures through embassy in Delhi to ensure the payment of dues as the exporters were in the risk of shutting down their factories.
A BGMEA director said that Bangladesh has a bright export prospects in densely populated India which has a wide middle-class consumers base and that the garment exports to India were increasing due to high demands for Bangladeshi products like trousers, shirts, blouses, skirts, kids wear, cotton nightwear and jeans. According to Exporters Association of Bangladesh president Abdus Salam Murshedy, Bangladesh’s export to Indian market has seen increase due to tariff waiver along with geographical proximity, but the growth was slow compared to the previous year. To attract consumers as well as the retailers to grab the big Indian market, Abdus Salam emphasis on organizing fairs in India.
SOURCE: Yarns&Fibers
Pakistan and Thailand have agreed on the Terms of Reference (ToRs) and the framework to begin negotiations on Free Trade Agreement (FTA) between the two countries, Pakistani newspapers have reported. The announcement was made by Pakistan Commerce Minister Khurram Dastgir and Thai Minister for Commerce General Chatchai Sarikulya at the end of a two-day visit of the Thai trade delegation. “Pakistan and Thailand have agreed to launch negotiations for a comprehensive FTA which will initially cover trade in goods and subsequently trade in services,” Dastgir told the media at a press conference. He said the initiative was part of Pakistan's strategy to deepen trade and investment linkages with Southeast Asian economies that are among the fastest growing in the world. The two countries had also agreed to play their role in facilitating each other in their respective regions.
On the product front, Thailand has comparative advantage in electrical and electronic appliances, machinery and components and automobiles. Pakistan, on the other hand, has advantage mainly in the production of cotton yarn and woven textiles, ready-made garments, leather products and other miscellaneous manufactured items like surgical instruments and sports goods.
SOURCE: Fibre2fashion
Iran is open to Indian private companies investing in the development of Chabahar port, its foreign minister said. "We both, India and Iran, are eager to engage in this. I believe sooner rather than later we will start serious work," Javad Zarif told reporters in New Delhi, adding that the two countries have an agreement in place. India and Iran had signed a deal in May to develop the Chabahar port in southeast Iran.
SOURCE: The Economic Times
Clair de Lune is bursting at the seams. The maker of baby bedding and accessories is struggling to keep up with orders as staff surrounded by rolls of fabric, boxes of linen and piles of Moses baskets work furiously at sewing machines. “If I could find another 10 machinists I’ve got work for them tomorrow,” says Polly Rodgers, a director of the family-owned business. Turnover is up 50 per cent this year to record levels and it has taken on 20 staff to hit 60 but needs still more. The scene is repeated in factories across Greater Manchester, once known as Cottonopolis for its role in the UK’s textile trade.
With overseas production costs rising and retailers demanding fast turnround times, parts of the industry are finally growing again after 35 years of decline. Mrs Rodgers says the “Made in Britain” tag also retains cachet, with the company making its first sale to Hong Kong this year. Jamie Power, the company’s young finance manager, says: “It has become competitive to manufacture here again. It is the same cost as east Asia.” Exports account for only 5 per cent of sales but are growing. The 70-year-old company, incorporated as Dawson Rodgers, provides own-brand ranges for retailers, as well as Clair de Lune products. After years of stagnation, sales rose during the recession as the company marketed itself on social media and competitors went bust. This year they should rise by 50 per cent to £5m and profits top £1m. With rising demand and a shortage of workers, the industry has made an appeal across the former cotton towns around Manchester. It hosted pop-up tea shops in high streets across the area, in the search for people who had left the industry as it shrank and wanted to come back, as well as new recruits. Some 337 people have been hired by 20 businesses thanks to the Alliance Project, an initiative funded by government, companies and Lord Alliance, the textile magnate.
Andrea Murray was working at home as a freelance designer when she heard a radio item about the textile tea shop. “I wanted to work in a factory again. I missed the buzz. I am so pleased this has got manufacturing in the UK. So much has gone overseas. “There is something special about hearing a factory buzzing with machines,” she says. She has just started as production manager at Clair de Lune. Mrs Rodgers wants to attract younger recruits. It is tough work, paid a “piece” rate per item produced.
According to the Office for National Statistics, average weekly wages in the industry were £371 in July 2014, compared with £564 for manufacturing as a whole. However, Lorna Fitzsimons, director of the Alliance Project, disputes that as she says technical machinists can earn up to £27,000 a year. “It is an industry still taking people with entry-level skills so is one of the most socially mobile industries. It is very exciting. Both domestic and export markets are growing,” she says. With £11m investment and led by N Brown, the home shopping business, the project says it has helped 133 companies and created almost 2,000 jobs. It expects the industry, which is worth £9bn to the UK economy and employs about 100,000, to create a further 20,000 jobs by 2020. Output has fallen by two-thirds since 1979, when 851,000 worked in the sector. James Eden, managing director of the luxury British label Private White VC, based in Manchester, said designers increasingly wanted to work with UK manufacturers: “We are expected to be able to respond quickly to the latest trends, and this is creating a second industrial revolution in Manchester.”
SOURCE: The Financial Times
