Textile Raw Material Price 2015-10-11
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1089.73 |
USD/Ton |
0.36% |
10/11/2015 |
|
VSF |
2281.90 |
USD/Ton |
0.35% |
10/11/2015 |
|
ASF |
2296.87 |
USD/Ton |
0% |
10/11/2015 |
|
Polyester POY |
1040.09 |
USD/Ton |
2.33% |
10/11/2015 |
|
Nylon FDY |
2537.20 |
USD/Ton |
0% |
10/11/2015 |
|
40D Spandex |
5673.24 |
USD/Ton |
0% |
10/11/2015 |
|
Nylon DTY |
2485.98 |
USD/Ton |
0% |
10/11/2015 |
|
Viscose Long Filament |
1118.89 |
USD/Ton |
1.07% |
10/11/2015 |
|
Polyester DTY |
2789.34 |
USD/Ton |
0% |
10/11/2015 |
|
Nylon POY |
5870.23 |
USD/Ton |
0% |
10/11/2015 |
|
Acrylic Top 3D |
1308.00 |
USD/Ton |
0.61% |
10/11/2015 |
|
Polyester FDY |
2363.85 |
USD/Ton |
0% |
10/11/2015 |
|
30S Spun Rayon Yarn |
2852.38 |
USD/Ton |
0.56% |
10/11/2015 |
|
32S Polyester Yarn |
1765.01 |
USD/Ton |
0.90% |
10/11/2015 |
|
45S T/C Yarn |
2742.07 |
USD/Ton |
0% |
10/11/2015 |
|
45S Polyester Yarn |
1906.84 |
USD/Ton |
0% |
10/11/2015 |
|
T/C Yarn 65/35 32S |
2332.33 |
USD/Ton |
0% |
10/11/2015 |
|
40S Rayon Yarn |
3009.97 |
USD/Ton |
0.53% |
10/11/2015 |
|
T/R Yarn 65/35 32S |
2584.48 |
USD/Ton |
0% |
10/11/2015 |
|
10S Denim Fabric |
1.10 |
USD/Meter |
0% |
10/11/2015 |
|
32S Twill Fabric |
0.93 |
USD/Meter |
0% |
10/11/2015 |
|
40S Combed Poplin |
1.02 |
USD/Meter |
0% |
10/11/2015 |
|
30S Rayon Fabric |
0.75 |
USD/Meter |
0% |
10/11/2015 |
|
45S T/C Fabric |
0.76 |
USD/Meter |
0% |
10/11/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Commerce Ministry was giving "importance" to overall industrial development and was trying to improve exports of all commodities, its Minister Nirmala Sitharaman said. "We are giving importance to industrial development in India and also trying to improve the exports of all commodities," she said while interacting with entrepreneurs, farmers and other associations here.
Praising the district for its industrial and agricultural development, she said, "though Tamil Nadu ranked first in turmeric cultivation, marketing of products require some (more) development". She said the Ministry would give all its support if "reasonable" and "justified" suggestions were given for development of farming community and also to traders. Stating that the global trade was in crisis and subsequently India's exports decreased, she said, "the GDP rate in China was 36 per cent against India's 17 per cent". "So we have to compete with China by procuring more quality products with decreased price," she said.
Pointing to the proposed economic corridor between Vishakapatnam and Chennai, she said, "if it is extended to Tuticorin, many more developments may be made". She said the Government was taking all efforts to improve port handling so that it can accommodate any "commodity". Referring to Prime Minister Narendra Modi's vision on "Zero Defect-Zero Effect" model, she said,"such things are very essential for pollution oriented industries like leather tanning".
SOURCE: The Economic Times
The textile industry has asked the Centre to extend the 3% interest subvention for all textile products so as to enhance exports. C K Narayanasaami, Chairman, SIMA Cotton Development & Research Association and K Selvaraju, Secretary General, Southern India Mills' Association (SIMA) met the Commerce minister Nirmala Sitharaman during her visit to Coimbatore and handed over a 10 point memorandum with the industry's demands. The industry said it wants MEIS scheme benefits to be extended to cotton.
The association also flagged how textile products from India attract very high tariff rates in all the major markets like China, EU, USA, Canada, Australia. In comparison, those from Pakistan, Vietnam, Bangladesh, South Korea, Indonesia, Cambodia either attract very low tariff or have duty free access. To offset this and boost exports, the association wants low tariffs or duty free access. It also asked the government to exempt domestic supply of capital goods under the EPCG scheme from terminal excise duty by introducing suitable bond procedure as against obtaining refund at a later date. It further wants the Commerce ministry to remove the condition that certain percentage of exports should be carried out within the "block period". The association also wants the Centre to ask Bangladesh to remove duty on Indian cotton yarn. Cotton yarn import is subject to customs duty of over 36% in Bangladesh. It further asked the government to remove import duties and reduce the central excise duty from 12.5% to 6% and also withdraw anti-dumping duties, remove the 6% central excise duty on shuttleless looms (projectile) and 12.5% on other shuttleless looms (air jet looms, rapier looms and water jet looms) and spares & accessories.
The textile industry which had been performing well till the end of 2013 started facing problems as competing nations like Pakistan, Vietnam, Cambodia, South Korea, Bangladesh started getting larger benefits and open window market access.
SOURCE: The Global Textiles
Like in many other industries, in apparel too China has left India way behind. Today, China is the world’s apparel superpower, with exports of $165 billion and controlling 39% of the global apparel trade. India, in contrast, exports one-tenth that of China and contributes 3.7% to global apparel trade. Surprisingly, China has us to thank—at least in part—for its success. For, China’s phenomenal growth in cotton garments is partly because we continue to be its largest supplier of cotton fibre and yarn. We export over $4 billion of cotton yarn and fibre to China every year, 30% of its total cotton fibre and yarn imports.
This is unfortunate. One, it is always better to sell finished garment rather than raw material. If 1 kg of yarn is processed and sold as finished garment, it generates four times more revenue. If 1 kg of cotton fibre is sold as finished garment, it generates 6-8 times more revenue. India exports $9 billion per year of raw cotton fibre and yarn to China. Safely put, at least $24 billion of China’s garment exports is courtesy us.
Two, Apparel-making is far more labour-intensive than fabric- or yarn-making. In fact, 8-10 times more people can be employed if the same yarn we sell to China is worked on and sold as finished garment to the rest of the world. With manufacturing jobs not keeping pace with the government’s vision, this could be an important focus area to drive employment.
So, what will it take for us to win back our rightful position in the global apparel trade?
Successfully moving on these areas and exporting our produce as finished goods, by itself, will give a $40 billion boost to exports, and propel us to a 10%-plus share in global apparel trade. Once we fix this in the short term, achieving the $300 billion export target set out for our textile industry by 2024-25 is only a matter of time.
SOURCE: The Financial Express
The 21st century will be dominated by space exploration and ocean transport and the country needs to leverage its strengths in these areas, Prime Minister Narendra Modi said. He was addressing a rally after inaugurating the two metro rail corridors for Mumbai city. The two elevated metro corridors will connect the suburban areas of Dahisar East with Andheri East (16.50 km) and Dahisar East with DN Nagar (18.60 km). Earlier in the day, the Prime Minister laid the foundation stone for the Rs. 7,900-crore fourth container terminal at Jawaharlal Nehru Port Trust (JNPT), the largest container port in India. Modi said that in any advanced economies, the port sector is very vibrant and the same is required for India. The new terminal at JNPT will further strengthen the country’s position in global maritime market. But merely setting up a port will not lead to development, it also needs multi-modal transport and infrastructure facilities such roads, rail and cold storage facilities, he said. The Prime Minister also laid the foundation stone of a grand memorial for Babasaheb Ambedkar at Indu Mills Compound near Chaitya Bhoomi, Shivaji Park. The memorial would be developed at a cost of over Rs. 400 crore and is planned to be completed during the tenure of the present government.
Maharashtra Governor Ch Vidyasagar Rao, Chief Minister Devendra Fadnavis, Union Ministers Nitin Gadkari and Santosh Gangwar, Babasaheb Ambedkar's grandson Prakash Ambedkar and RPI leader Ramdas Athavale were present on the occasion. The Shiv Sena boycotted the function as its chief Uddhav Thackeray was not invited. Modi said the Government would develop and modernise 400 railway stations across the country. He congratulated Maharashta Chief Minister Devendra Fadnavis for pushing the Metro project in a span of four months.
SOURCE: The Hindu Business Line
Traders and businesses above a specified annual turnover will have to get a unique identification number for collecting goods and services tax (GST) from consumers, while those with lesser annual sales can get a GST registration voluntarily if they want to seek credit for the taxes previously paid, according to a report on GST business process released by the government for public comments.The report on GST registration prepared by Union and state officials has also proposed a compounding scheme for small traders who are marginally above the turnover threshold for registration. They will be allowed to pay tax at a rate lower than the standard rate of GST on their annual turnover, but will not get any credit for the taxes previously paid. Traders with inter-state transactions will have to compulsorily obtain GST registration even if their turnover is below the specified threshold, says the report. Although the report does not specify the turnover threshold for registration, officials have tentatively kept it at R10 lakh. Those in the R10-50 lakh turnover range will be eligible for the lower-than-the-standard GST rate under the compounding scheme, under the consensus among Union and state government officials. The finance ministry also released two other reports on GST payment and GST refunds for public comments. While the Modi government could not muster political support for getting the Constitution (122nd Amendment) Bill passed in Rajya Sabha, where it is a minority, it is going ahead with the administrative and legislative work needed for the indirect tax reform. Although the government may miss the April 1, 2016 deadline for rolling out GST, it is hoping it could implement the tax reform sometime in the middle of next financial year.
Finmin seeks industry views
With preparations for the next Union Budget picking up pace, the finance ministry has invited suggestions from trade and industry for changes in tax rates and broadening of base, reports PTI. “You may like to send your suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same,” it said in a communication to the trade and industry bodies.
SOURCE: The Financial Express
Germany has recovered from a dip in its economic growth and is now growing at just below two per cent - very respectable for a developed economy. Do the Indo-German bilateral relations, given a boost from Chancellor Angela Merkel's recent visit to India, reflect that country's economic powerhouse status? Exports and imports have both increased solidly since 10 years ago - albeit with a drop of late, at least in dollar terms. However, as a percentage of India's total exports and imports, trade with Germany has in fact fallen over the past decade - indicating that there is considerable room for improvement. Germany's top non-European trading partners, showing how far India has to go. One issue may be that India's major exports to Germany have not changed vastly in composition over the past 10 years. Nor, for that matter, have India's imports from Germany - though German vehicles have entered the top five since 2005.
SOURCE: The Business Standard
The FTA inked between the two countries China and Pakistan on November 24, 2006 is currently undergoing a review to finalise phase-II in which both parties are aiming to eliminate tariff on no less than 90% of the products both in terms of tariff lines and trade volumes. The second phase of China Pakistan Free Trade Agreement (CPFTA) will be held on October 14, 2015 in Beijing.
In the phase-I Pakistan had offered market access to China namely on machinery, organic and inorganic chemicals, fruits & vegetables, medicines and other raw material for various industries including engineering sector, intermediate goods for engineering etc. However, Pakistan's industrial stakeholders are reportedly urging the Ministry of Commerce (MoC) to negotiate "Fair Trade Agreement" instead of under-negotiated Free Trade Agreement-II (FTA-II), allowing import of raw materials not finished products. This was the crux of the recent consultative meetings between the Commerce Ministry's team and industry representatives held in Islamabad.
In view of mixed reaction to phase-I of the FTA, Ministry of Commerce is working to address the concerns of Pakistan's industry and trade on this agreement. During the review of phase-I, the discrepancy in reported figures between the two countries has been a major source of concern for the policymakers and the trade and industry representatives. For example, in its report on Pak-China FTA, Pakistan Business Council (PBC) has quoted figures of exports from China to Pakistan at $11.019 billion in 2013. However during the same period, Pakistan recorded imports of only $6.626 billion. This has created an 'unaccounted for' gap of $4.393 billion. Similarly, recorded exports of Pakistan to China are $2.652 billion while during the same period i.e. 2013, China recorded imports of $3.196 billion giving a gap of $544 million. One of the reasons for such discrepancies in trade figures is massive under invoicing and smuggling of goods from China.
Commerce Minister Engineer Khurram Dastgir, is seriously concerned about unaccounted for gap of about $5 billion. He recently met with his Chinese counterpart and urged him to resolve this issue. During the 4thmeeting of negotiation of 2nd phase of CPFTA held in Beijing from 31st Mach to 1st April, 2015 Pakistan shared its concerns regarding insufficient utilisation of concessions given by China to Pakistan and competition faced by the local industries due to cheap imports from China. It was agreed that the tariff reduction modalities of 2nd phase would be designed in a way that all the genuine concerns of the two countries are adequately accommodated.
During the review sessions, conducted by the MoC, common concern shared by the domestic industry has been massive hemorrhage because of unfair advantage that Chinese goods have in Pakistan against the local industry. Support of Chinese government for its own industry through financial and non-financial measures, huge economies of scale that Chinese industry enjoys and lack of implementation of tariffs and import procedures at Pakistani borders are some of the major contributing factors that are disadvantaging Pakistani industry. Pakistan's economy is uncompetitive vis-à-vis China due to lack of essential infrastructure, such as gas, electricity and exorbitant cost of other services.
The industry representatives raised serious concerns over allowing further reduction in tariff at a time when Pakistan has been unable to enjoy any increase in exports that can specifically be linked to FTA with China. The minister has been giving a patient hearing to all sectors and the negotiations are planned to continue through next week, giving the Pakistani side insight and material to negotiate a better deal this time.
Emerging theme behind reducing sensitive list during discussion on second phase of Pak-China FTA is to allow import of those products of different sectors that are not being manufactured locally. However, potential of such products to be produced locally in future is also being discussed. It has been realised that by allowing these products to be imported at a lower or no tariff, the future opportunity for producing locally will be lost. Emerging theme seems to be to allow import of raw-materials in FTA while placing finished/ semi finished product in 'no concession list'.
Industry is eagerly looking forward to a favourable outcome of these negotiations, as the future of manufacturing in Pakistan will depend on the success of Pakistan's negotiating team. In essence, the negotiating team from Pakistan and the industry are looking for "Fair Trade Agreement" instead of 'Free Trade Agreement' so that county's interest may be protected in term of gains of trade.
Pakistan's major exports to China are cotton yarn/fabric, rice, raw hides & skins, crude vegetable material, chemical material, fish and fish preparations and crude mineral etc. While major imports from China are machinery (all sorts) and parts, fertiliser manufactured, chemical element, yarn and thread of synthetic fiber, iron and steels, chemical material and product, vegetable and synthetic textile fiber, road vehicles and their parts, non-ferrous metals, tyres and tubes of rubber etc. Pakistan secured market access on products of immediate export interest like cotton fabrics, blended fabrics, synthetic yarn and fabrics, knit fabrics, home textiles, minerals, sports goods, cutlery, surgical goods, kinnow, mangoes, industrial alcohol, etc.
SOURCE: Yarns&Fibers
As many as 80 Indian companies from various sectors including textiles, pharmaceuticals, finance, chemicals and fertilizers have been invited by the Uzbekistan government at an International Investment Forum on November 5-6 in capital Tashkent to implement the vision of stronger Indo-Uzbek economic partnership as well as India's growing ties with Central Asia following PM Narendra Modi's visit to all five countries in the region last July.
Uzbekistan has established three Free Economic Zones where Indian companies will be given first preference, an Uzbek government official told ET. Tashkent is pushing to implement vision enunciated during PM Modi's visit to the country which was first stop in his tour to Central Asia and Russia. The objective of the International Investment Forum is to facilitate interface between the leading enterprises of Uzbekistan and strategic foreign investors capable of ensuring modernization and help in manufacturing of goods competitive in both domestic and external markets, as well as introduction of modern corporate governance practices. The Forum will be attended by members of the Uzbek Government, heads of ministries and departments of Uzbekistan, investment funds and banks, as well as international financial institutions: the World Bank, the International Finance Corporation, the Asian Development Bank among others. The agenda of the event includes plenary sessions, presentations by major foreign investors on their experience in doing business in Uzbekistan, panel sessions on various economic sectors with presentations of specific privatization objects, visits to enterprises, as well as cultural program with trips to ancient cities including Samarkand, Bukhara and Khiva, which will complement the business part of the event. The International Investment Forum will allow foreign investors to establish mutually beneficial business contacts and to open up new growth opportunities in the promising and fast-growing market of Uzbekistan, according to a statement by the Uzbek government.
SOURCE: The Economic Times
Last Monday, negotiators from 12 countries in the Pacific Rim struck a deal called the Trans-Pacific Partnership (TPP). The aim is to ease the flow of goods, services and investments among them, and to strengthen the rules on labour standards, environmental issues, origin criteria and intellectual property. It is touted as the most ambitious of trade deals between these countries that have about 800 million people and account for 40 per cent of the global trade.
Two major economies in the region - China and South Korea - are not part of the TPP. They might join later. It has America, Canada, Australia, New Zealand and Japan from the bigger economies, and Chile, Peru, Mexico, Vietnam, Singapore, Brunei and Malaysia from the smaller ones. It will come into effect only after each of these ratifies the agreement. Details of how the deal will be implemented will be argued out in individual countries in the coming weeks and months before being ratified. Those in favour say it will unleash new economic growth among the countries involved. Those against, particularly some Americans, fear it could mean jobs will move from the US to developing countries.
The TPP reflects the high ambitions of the major countries in rule-making. Barack Obama, the US President, said "When more than 95 per cent of our potential customers live outside our borders, we can't let countries like China write the rules of the global economy. We should write those rules, opening new markets to American products, while setting high standards for protecting workers and preserving our environment."
With tariff reduction no more a major challenge, the major tasks for the TPP are rule harmonisation, achieving coherence and removal of non-tariff barriers. The TPP and other mega trade agreements under negotiation such as the Transatlantic Trade and Investment Partnership and the Regional Comprehensive Economic Partnership (RCEP) are bound to challenge India's businesses in many ways, says our commerce ministry. First, they will erode existing preferences for Indian products in established traditional markets such as the US and the European Union (EU), benefiting the partners to these agreements. Second, they are likely to develop a rules architecture which will place greater burden of compliance on India's manufacturing and services standards for access to the markets of the participating countries.
Our commerce ministry says these challenges should be treated as an opportunity to respond strategically, and to persuade Indian industry to rise to the challenge of higher standards in both products and services, and the framework of rules. Besides, India wants to find its own way into the global supply chains and markets via the RCEP, a proposed free trade agreement between the 10-members of the Association of Southeast Asian Nations plus Australia, China, India, Japan, South Korea and New Zealand. Parties to these negotiations are engaged in serious discussion and expect to hammer out an agreement by end-2015. India also needs to resume stalled negotiations with the EU. The ministry has begun the process of sensitising domestic business to the new global realities and challenges posed by these mega trade deals, with a view to muster support for its negotiations in RCEP and with the EU. Indian businesses must recognise that the essence of such negotiations is give and take.
SOURCE: The Business Standard
The 13-nation Trans-Pacific Partnership (TPP) deal may pose new challenges to India like adopting 'TPP-type' rules in its trade policies as the country aims greater integration with the Asia-Pacific, a think tank here has said. The US, Japan and 10 other Pacific Rim nations on Monday reached final agreement on the largest regional trade accord in history. "The agreement is taking off at a time when India is aiming at greater integration with the Asia-Pacific," Dr Amitendu Palit, a senior research fellow at Institute of South Asia Studies at the National University of Singapore, said in the report released this weekend on 'TPP and India's Emerging Challenges'.
India is negotiating the Regional Comprehensive Economic Partnership (RCEP) that includes the 10-member countries from the Association of South East Asian Nations, Australia, China, Japan, New Zealand and South Korea. "India needs to study the TPP carefully for anticipating its possible impact on its RCEP negotiations," he pointed out. India also needs to speed up at the RCEP-negotiations, given that the agreement will offer its exports greater access to several Asia-Pacific markets, including China.
The TPP is also likely to become the yardstick for various commitments to trade liberalisation for countries bidding for membership of the Asia Pacific Economic Cooperation (APEC) grouping, such as India. "In all, the pressure on India to adopt 'TPP-type' rules in its trade policies is expected to increase over time," Dr Palit opined. "The TPP also exposes India to a couple of significant diplomatic challenges," he stressed.
For avoiding the possible adverse implications on its exports to TPP member-markets because of lower tariffs on intra-TPP exports compared with those on Indian products, India needs to quickly conclude the bilateral free trade agreements it is negotiating with TPP members like Australia and Canada, he said. "But more importantly, the TPP would require India to search for closer alignment between its foreign and trade policies," said Palit.
India's foreign policy, which has become distinctly proactive and conscious of opportunities in foreign markets under the Modi Government, is aiming to posit India as a major actor in the Asia-Pacific. Such intentions are visible from India's desire to join the APEC grouping, expand its sphere of influence in the region through the 'Act East' strategy and also growing bonhomie with major Pacific nations - the US, Japan, Australia, Canada and South Korea. New Delhi's greater strategic proximity with these countries, all of the TPP -- while facilitating a deeper foothold in the region and greater say in regional affairs -- will be accompanied by external demands on India for more trade liberalisation and concessions on market access, he said. The TPP also entails a major diplomatic challenge for India by focusing on the need for closer alignment of New Delhi's trade and foreign policies for deeper and meaningful interaction with the region, he said.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 50.68 per barrel (bbl) on 09.10.2015. This was higher than the price of US$ 49.81 per bbl on previous publishing day of 08.10.2015.
In rupee terms, the price of Indian Basket increased to Rs 3283.36 per bbl on 09.10.2015 as compared to Rs 3245.72 per bbl on 08.10.2015. Rupee closed stronger at Rs 64.78 per US$ on 09.10.2015 as against Rs 65.16 per US$ on 08.10.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 09, 2015 (Previous trading day i.e. 08.10.2015) |
Pricing Fortnight for 01.10.2015 (Sep 12 to Sep 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
50.68 (49.81) |
45.27 |
|
(Rs/bbl |
3283.36 (3245.72) |
2991.44 |
|
|
Exchange Rate |
(Rs/$) |
64.78 (65.16) |
66.08 |
SOURCE: PIB
The export-oriented industry, especially the value-added textile exporters, is facing serious financial crisis, as the present government has not issued a single installment of billions of rupees income tax and sales tax refunds stuck up with the Federal Board of Revenue. The Ferozepur Road Welfare Industrial Organization (FRWO) former chairman Adeeb Iqbal Sheikh appealed to the government to issue instructions to the FBR for releasing cheques against all the pending refund claims in order to enable the industry to continue earning through exports. He suggested a ‘no-payment no-refund’ system for the value-added textile sector, through which payments should not be made in the first place, saving the time and effort of the FBR. He said that the Federal Board of Revenue (FBR) still withholds more than Rs13 billion under the Drawback on Local Taxes and Levies (DLTL) claims and about Rs17 billion general sales tax under the refund claims, causing immense problems to the cash-starved industry.He urged the government to allocate the Export Development Fund (EDF) to the textile ministry so that it could be utilised for the development of exports, as the textile sector’s contribution to the EDF stands at Rs11.5 billion.He added that the sector’s production could grow by over 80% provided funds were released immediately. Adeeb Iqbal said that the country has failed to improve its textile exports despite getting the status of GSP plus.FRWO former chairman urged the Punjab government to declare Ferozepur Road Industrial Area as “Industrial Estate”. He said that more than 300 industrial units and trading houses catering to the needs of over one hundred and fifty thousands of people directly or indirectly but due to non-availability of fundamental facilities, the industrialists were facing multiple problems.
SOURCE: The Global Textiles
The Investment Coordinating Board (BKPM) having received reports that 13 textile companies face problems, eight of which plan to reduce production and five others plan to stop their businesses decided to establish a special desk dedicated to solving problems faced by those who want to invest in textiles and footwear. The special desk was launched on Friday; it is part of BKPM's effort to keep textile investments competitive so that there are a large number of jobs. This special desk is intended to help investors who are facing problems, so that layoffs can be prevented.
According to BKPM chief Franky Sibarani, investors in both sectors who have financial problems are expected to come to the special desk, so that they could secure their business and continuously employ their workers. BKPM’s deputy director for investment monitoring and realization Azhar Lubis added that his office would follow up the report from the help desk and would help investors solve their problems. Some of the problems that hinder the realization of the investment are the existence of interlocking regulations.
Although there are reports about the problems faced by the textile industry due to the economic slowdown, BKPM said that the investment in this sector continues to rise. It recorded positive growth on textile investment realization in the first semester of 2015 by 58 percent worth Rp 3.88 trillion (US$290.52 million) compared to the first part of 2014. Textile sub-sector investment also recorded positive growth. The textile fiber processing industry grew 213 percent to Rp 2.4 trillion, the weaving textile industry grew 613 percent to Rp 163 billion, the clothing industry grew 16 percent to Rp 941 billion and the clothing accessories industry grew 563 percent to Rp 216 billion. The establishment of special desk is expected to resolve the investment anomalies that occur particularly in the textile sector.
SOURCE: Yarns&Fibers
This week, the USA and 11 other countries came to an agreement on the Trans-Pacific Partnership, a treaty that would remove a few tariffs and local regulations over imports and spanning the Americas and the Asia-Pacific region. Taiwan welcoming the conclusion of TPP deal has reiterated its desire to join. Other nations are also keen to join the deal, which encompasses close to 40 percent of the global economy and will set the tone for worldwide trade. Australian agriculture will struggle to undergo a transformational boost without the inclusion of China in the Trans Pacific Partnership.
It’s a tricky balancing act for multiple trade partners with competing interests. The White House even says that this partnership levels the playing field for their farmers, ranchers, and manufacturers by eliminating more than 18,000 taxes that various countries put on their products. Therefore, there will surely be many production and business opportunities when the new supply chains are launched. Domestic textile firms will have to be cautious of the TPP’s “yarn forward rule” that mandates fabric produced from yarn made by a TPP country only to qualify for the trade agreement’s duty-free status. According to Obama, there’s going to be a long, healthy process of discussion and consultation and debate before this ever comes to an actual vote. In this respect, however, the TPP can also be seen in a positive light, raising the pressure on China to push back by accelerating the opening up of its economy and reforming bloated state enterprises, which could pave the way for eventually joining the TPP. According to Fitch Ratings, the net impact on global activity may be small as increased trade within the TPP is offset by trade diverted from countries outside the bloc.
SOURCE: Yarns&Fibers
The new government in Sri Lanka is keen to promote trade relationships with India. This includes an agreement on science and technology that is being worked out and which the two countries hope to sign next year, according to Vadivel Krishnamoorthy, Deputy High Commissioner of Sri Lanka in southern India. Addressing the India-ASEAN-Sri Lanka Chamber of Commerce and Industry here on Friday, Krishnamoorthy said: “There is scope for collaboration in the areas of construction services such as real estate, infrastructure development and town planning in Sri Lanka.” He said the proposal to upgrade infrastructure of five cities around Colombo, which will be finalised after the budget, gives a platform for the countries to work together. Another project, to rehabilitate conflict-affected families in the northern and eastern provinces by constructing 65,000 independent housing units, presents yet another opportunity to strengthen ties between the countries, he added.
Launch pad
“Sri Lanka’s strategic location and stable government, literate workforce and pro-business environment make it an ideal launch pad for Indian entrepreneurs to tap the whole South Asian market,” said Krishnamoorthy. Stating that there is considerable potential to increase Sri Lankan exports to India from $624 million now, he said bilateral trade has grown substantially since 2000, after the signing of a free trade agreement.
SOURCE: The Hindu Business Line
India and South American nation Ecuador today signed an agreement to set up a Joint Economic and Trade Committee (JETCO) to strengthen the trade relations between the countries. The protocol for establishment of the "India-Ecuador Joint Economic and Trade Committee" was signed during the meeting of Ambassador of Ecuador to India, Mentor Villagomez and Commerce Secretary Rita Teotia.
During the meeting, both the sides also discussed measures to enhance trade and investment relations. During 2014-15, the bilateral trade stood at USD 1.29 billion, the Commerce Ministry said in a statement. It said that JETCO was signed with an aim to further improve, deepen and strengthen the existing trade relationship. "The JETCO will function as the primary forum for discussion and other promotional activities on trade and investment issues and will be meeting once in every two years," it said. The first meeting of the JETCO is proposed to be held early next year in India, it added.
SOURCE: The Economic Times
Vietnam is a significant player in President Barack Obama’s pivot to Asia as both the U.S. and Vietnam would like to see the Southeast Asian nation less reliant on China, which is not a party to the trade accord. Vietnam’s economy that relies on exports, is likely to be the biggest winner of the Trans-Pacific Partnership. In a decade, the country’s gross domestic product will be boosted 11 percent, or $36 billion, as a result of the world’s largest trade pact.
Exports may soar 28 percent in the period as companies move factories to the Southeast Asian country. Reduced import duties in the U.S. and Japan will benefit the Vietnam’s apparel manufacturers, whose low labor costs have enabled them to grab business from China. Vietnam may have a 50 percent increase in apparel exports in 10 years, according to the Eurasia Group. The ending of tariffs for Vietnamese products is likely to trigger more investment from foreign companies. Companies such as Texhong Textile Group Ltd., Shenzhou International Group Holdings Ltd. and Pacific Textiles Holdings Ltd. are relocating operations to Vietnam to take advantage of the trade agreement.
The signing of the agreement is expected to give a short-term boost to the broader market. Vietnam’s benchmark stock index has risen 3 percent this week, with foreign investors snapping up logistics, industrial parks and garments. Foreign investors have bought $41.8 million of Vietnamese stocks this week, poised to be net buyers after selling Vietnamese stocks earlier in the month. More FDI is expected into these sectors. As the trade pact is pressuring Vietnam to reform state-owned companies and make institutional changes. Vietnam’s Prime Minister Nguyen Tan Dung has called for a restructuring of the country’s agriculture sector to help it compete with multinationals. The agreement still needs to be passed by the governments of the 12 nations. The failure of TPP would leave Vietnam more economically isolated and dependent on China. The failure of TPP would also undercut those in Vietnam advocating closer ties to the U.S. and dent America’s influence in the region. But Vietnam although has successfully negotiated trade deals with the European Union and South Korea earlier this year, is aggressively seeking economic partners to balance its relationship with China.
SOURCE: Yarns&Fibers
A ten-year long plan for improving the manufacturing and industrial exports sectors has been revealed by Adan Mohamed, cabinet secretary of Industrialisation and Enterprise Development in Nairobi, as per Kenyan media reports. The plan is expected to improve the share of manufacturing sector to over 15 per cent of Gross Domestic Product (GDP) from the static 11 per cent for the last ten years. The focus of the plan is to develop a favourable environment for Kenya to shift into higher value-added manufacturing sectors. Mohamed said the government plans to implement the “Buy Kenyan, Build Kenya” policy to reduce the $780 million textile and apparel import bill. The plans also reveal tapping into new markets in textile and apparel growth by developing industrial park with a textile cluster in Naivasha using natural power. The city of Mombasa is expected to become a hub since the government plans to develop textile clusters in the region to attract investment.
While launching the plan Mohamed informed that by identifying 10 opportunities in Kenya with main strategies in the next five years, 435,000 jobs will be created and $2.85 billion can be added to the GDP. Under the plan, incentives will be offered for local value addition for multinational companies that consider creating opportunities for small and medium scale enterprises by investing in group packaging. Such joint efforts are expected to create 10,000 jobs and attract investment of over $200 million in value addition. (HO)
SOURCE: Fibre2fashion
The IMF warned that a sharp economic slowdown in China would hit not only the world’s second largest economy but the rest of Asia-Pacific region hard. “Given the sheer size of the Chinese economy, a negative growth shock there would hit the rest of Asia-Pacific region hard,” the International Monetary Fund (IMF) said in its Asia and Pacific Regional Economic Outlook Update released here on the sidelines of the annual fall meeting of the IMF and the World Bank. Such a shock could come from failure to fully implement reforms (owing to reform fatigue, for instance) or from financial shocks and stronger-than envisaged financial linkages, which could make policy measures less effective in containing domestic financial contagion, the report said.
Ongoing efforts to rebalance the Chinese economy could also prove less effective than anticipated, leading to a sharp drop in demand, it noted, adding that a sharp slowdown in China would pose regional growth risks through strong trade linkages and increasingly through impacts on financial market sentiment. “Econometric estimates accounting for trade and financial linkages between China and the rest of Asia indicate that spillovers could be sizeable, with a 1 percentage point drop in China’s GDP growth lowering Asia’s GDP growth by about 0.3 percentage points,” it said. The effects could be potentially greater today given the growing linkages within the region, the IMF said, observing that weaker commodity prices would also impact growth in commodity exporters including Australia, Indonesia, Malaysia, and New Zealand.
Weak domestic demand in China suppresses its imports, increasing the risk of sharper-than-expected slowdown in its economy with global ripple effects, the economic outlook said. Also weak demand in China’s export destinations, including core advanced economies, reduces China’s exports and also imports with it, given the role China has played as the key downstream leg in global value chains.
IMF said China continues to rebalance its economy toward domestic consumption and services and away from credit-led investment. From the heydays double digit growth, China’s economy had declined to 7.7 per cent in both 2012 and 2013, the slowest pace since 1999 largely affected by the world economic crisis and declining exports due to global economic slowdown. Last month, China trimmed its growth estimate for 2014 to 7.3 per cent from 7.4 per cent, already the weakest in 25 years, in a move set to spark concerns about the health of the world’s second-largest economy days after fears of a slowdown triggered global stockmarket panic.
SOURCE: The Financial Express
