The government today extended duty incentives to a large number of products, including textiles and electronics, to increase competitiveness of Indian exports and boost shipments. Under the Merchandise Exports from India Scheme (MEIS), the Commerce Ministry has extended the duty benefits to 110 new tariff lines or products and increased rates or country coverage or both for existing 2,228 items. The Directorate General of Foreign Trade (DGFT) today notified the list of the items. Under the scheme, the government provides duty benefits at two per cent, three per cent and five per cent depending upon the product and country. Global support has been extended to products including textile items, pharmaceuticals, project goods, auto components, telecom, computer, electrical, electronics and railway transport equipments. Earlier, benefits to these items were provided to a few countries. The move is expected to help in improving competitiveness of a large number of exporters and help them tide over the difficult global economic scenario. Exporters body FIEO said that the move would help in boosting exports, which are in negative zone since December last year.
Contracting for the 10th month in a row, India's merchandise exports dipped 24.33 per cent in September to $21.84 billion, mainly due to steep fall in shipments of petroleum products, iron ore, and engineering goods amid tepid global demand. These duty benefits are part of the allocations increased from Rs 18,000 crore to Rs 21,000 crore for MEIS. Rewards under MEIS are payable as percentage of realised free-on-board value and the MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty. The new products which have been added under this scheme includes medical instruments, sports goods, value added processed products of natural rubber, chemicals and plastics. Earlier this month in a stakeholders meeting with Commerce Secretary Rita Teaotia, exporters had sought support from the government to boost exports.
SOURCE: The Economic Times
The Man made fiber (MMF) based textile sector that presently has meager 2.2 percent share in the market needs more investment to help government's ambitious plans to grow the size of the segment from USD 110 billion to USD 400 billion in the next few years. Wazir Advisors Jt Managing Director, Prashant Agarwal, speaking at the FICCI organized 7th annual conerence on textile and apparel industry ‘TAG 2015’ here said that the investment in man-made fiber based textile value chain will help in successfully implementing 'Make In India' initiative for textile sector. This will help in reducing the dependability on MMF based fabric imports worth USD 1.2 billion and make India a self-sufficient country in MMF-based textiles. The country imports MMF-based fabrics worth USD one billion from China, Korea and Taiwan due to absence of good quality fabric suppliers in India. Agarwal said that out of total global trade of MMF-based apparel, which is currently pegged at USD 170 billion has a great opportunity to increase the share of Indian MMF for that the textile and apparel industry should work together to increase it further. Kavita Gupta, Textile Commissioner, Ministry of Textiles said that the government is reading focusing on skill development and the industry should come forward to work hand in hand with government on this area. She also stressed on the need of R&D in the textile and apparel industry, which needs to be addressed collectively and in time-bound manner. She also informed that the government will open textile commissioner's office in each state, that will help industry to interact with the ministry on regular basis.
SOURCE: Yarns&Fibers
Gloves, jackets, socks, shoes, tent material, tarpaulins, and many more textile items are required for the soldiers who are in high altitude and super high altitude areas. The Indian Army sources these from the domestic and overseas manufacturers. It is now looking at more of local manufacturers and is creating awareness among the local industries on the defence requirements for protective clothing. P.N. Ananthanarayanan, Deputy Director General, Equipment Management (General Stores &Clothing), Master General of Ordnance Branch - Indian Army, who was here on Thursday to address the participants at a meeting on technical textiles told The Hindu that there is a need for high altitude clothing, super high altitude clothing, protective textiles, geo fabric for border roads, etc. The annual budget for general clothing is about Rs. 1,100 crore and Rs. 400 crore of this goes to purchases from the trade and the rest to ordnance stores.
Apart from these, imports are worth more than Rs. 200 crore. The super high altitude clothing is mostly imported from the European countries. “We are carrying out product development in a number of clothing items,” he added. Prototypes are created and samples are usually tried out during winter. The defence procurement manual is under review. “We are trying to encourage industries to come forward.” The units can come in as a consortium too. The volume of requirement is going up every year. Awareness needs to improve among the industry and the domestic vendor base should widen, he said.
SOURCE: The Hindu
With availability of manpower and presence of sectors such as automobiles, which are potential customers, south India has huge potential for investments in technical textiles, Pramod Kumar Khosla, chairman of Indian Technical Textile Association said here on Thursday. He was speaking at a conference on “Technical Textiles – the Enormous Emerging Opportunity”. Mr. Khosla said technical textiles is a research oriented industry. For the last few years, it is seeing growth world wide. The global market value for technical textiles is estimated to be 144 billion dollars in 2014 and it is expected to be 200 billion dollars by 2020. The compounded annual growth rate is 5.8 per cent. Woven, non-woven and knitting technologies have thrown open huge opportunities, he said.
S.K. Sundararaman, chairman of the taskforce on technical textiles, CII Coimbatore Zone, said there are 10 broad segments of technical textiles. The gestation period for a technical textile project is long and investments in marketing and technology are high. The opportunities are huge. For instance, the market size for hygiene products (diapers) in the country is estimated to be nearly Rs. 3500 crore. Those into garment sector can also tap the market for garment-based technical textile products.
K.V. Srinivasan, chairman of CII Coimbatore, said that in India, the technical textiles sector is seeing steady growth and it is between 12 per cent and 15 per cent depending on the segment. The market size is expected to be Rs. 1,50,000 crore in the next two years. The investment potential is promising and in south India, Kerala and Tamil Nadu have shown immense potential for investment because of the existing textile manufacturing base.
SOURCE: The Hindu
Around 300 products under the category of technical textiles will soon be classified by getting Harmonised System (HS) code, a top official of the Indian Technical Textiles Association (ITTA) said. ITTA has approached the government for classification of the products and a committee has been formed to identify the products to give HS code, ITTA Chairman Pramod Kumar Khosla said here. Speaking at a conference on 'Technical Textiles - The enormous emerging opportunity', jointly organised by CII and ITTA, Khosla said without this HS code, the technical textiles sector was facing serious problems, including litigation. Once the classification was made, manufacturers can concentrate on these products, he said. Since there are nearly 750 companies engaged in technical textile manufacturing in India and the sector expected to reach a market size of Rs 1,58,540 crore by 2016-17, ITTA has also sought rationalisation of duties on the specialty fiber, Khosla said. Since there are 12 categories of the sector, such as agri-tech, geo-tech, build-tech and cloth-tech, there is a need to have separate policy for the groups, he said. He appealed to Tamil Nadu government to come out with a separate policy for the sector as in Maharashtra and Gujarat. All the segments in the sector are recording double digit growth, with medical textiles witnessing 14 per cent growth, he said. Every car requires at least seven kgs of technical textiles and there is tremendous potential in the automobile sector, Khosla said. He added that with nearly 1.5 million soldiers, the requirement of defence force was huge since they need materials for trenches, apart from covers for tanks, planes and missiles.
SOURCE: The Economic Times
Grasim Industries, Aditya Birla owned textile manufacturer, reported consolidated net profit of Rs. 488.5 crore for the quarter, registering growth of 17.32% yoy and 0.79% qoq. Company’s revenue at Rs. 8392.9 crore, witnessed increase of 5.66% yoy and (2.38%) qoq. It’s consolidated core operating profit at Rs. 1398.06 crore, witnessed growth of 18.94% yoy and (1.34%) qoq. Consolidated operating margin at 16.65%, increased by 186 bps yoy and 17 bps qoq. For six months ended September 30, 2015, the company’s consolidated net profit at Rs. 973.17 crore, increased by 7.70% yoy. The company's revenue stood at Rs. 116990.73 crore, up 6.28% yoy. On standalone basis, the company’s net profit of Rs. 338.24 crore, recorded growth of 12.96% yoy and 219.78% qoq. Revenue stood at Rs. 1838.14 crore, recorded increase of 14.89% yoy and 10.91% qoq. For six months ended September 30, 2015, the company’s standalone net profit at Rs. 444.01 crore, up by 9.56% yoy. The company's revenue stood at Rs. 3495.36 crore, registering growth by 15% yoy.
SOURCE: The India Infoline
To strengthen ties with African countries and counter the growing influence of China in that region, Prime Minister Narendra Modi on Thursday announced a concessional credit grant of $10 billion to Africa through the next five years. “To add strength to our partnership, India will offer concessional credit of $10 billion over the next five years. This will be in addition to our ongoing credit programme,” Modi said at the inaugural ceremony of the third India-Africa Forum Summit here. “We will also offer a grant assistance of $600 million. This will include an India-Africa development fund of $100 million and an India-Africa health fund of $10 million. It will also include 50,000 scholarships in India through the next five years. And, it will support the expansion of the pan-Africa e-network and institutions of skilling, training and learning across Africa,” the PM added. India promises $10-bn line of credit to Africa Since the first India-Africa Summit in 2008, India has committed $7.4 billion in concessional credit and $1.2 billion in grants. India was also creating 100 capacity-building institutions and developing infrastructure, public transport, clean energy, irrigation, agriculture and manufacturing capacity across Africa, Modi said. Without mentioning the increasing Chinese presence in the African continent, the PM said in an address to about 50 African leaders, “There are times when we have not done as well as you have wanted us to. There have been occasions when we have not been as attentive as we should have. There are commitments we have not fulfilled as quickly as we should have … And, as we travel on the road ahead, we will do so with the wisdom of our experience and the benefit of your guidance.” “As we look to the future, there is something precious that unites us -— our youth. Two thirds of India and two thirds of Africa is under the age of 35. And, if the future belongs to the youth, this century is ours to shape and build,” Modi said.
The African continent was now more “settled and stable” and African nations were together putting up a joint effort to ensure development, peace and security of the region, he said, lauding efforts in the field of innovation, especially in mobile banking, health care, agriculture and digital technology, in Africa. Modi said 400,000 new businesses were registered in Africa in 2013 and mobile telephone services now reached 95 per cent of the population in many places. “The mobile banking of M-Pesa, the health care innovation of MedAfrica, or the agriculture innovations of AgriManagr and Kilimo Salama are using mobile and digital technology to transform lives in Africa. “Now, India is a major source of business investments in Africa. Today, 34 African countries enjoy duty-free access to the Indian market,” he said, adding African energy helped run the Indian economy; its resources were powering Indian industries; and African prosperity offered a growing market for Indian products. “We are each making enormous efforts with our modest resources to combat climate change. For India, 175 Gw of additional renewable energy capacity by 2022 and reduction in emission intensity by 33-35 per cent by 2030 are just two aspects of our efforts,” the PM said.
He stressed currently, the institutions of global governance weren’t adequately represented. “This is a world of free nations and awakened aspirations. Our institutions cannot be representative of our world if they do not give voice to Africa, with more than a quarter of UN members, or the world’s largest democracy, with one-sixth of humanity. That is why India and Africa must speak in one voice for reforms of the United Nations, including its Security Council,” Modi said. He also committed to raise increasing India’s support in integrating and connecting all parts of Africa. “We will help connect Africa from Cairo to Cape Town, from Marakesh to Mombassa; help develop your infrastructure, power and irrigation; help add value to your resources in Africa; and, set up industrial and information technology parks. “We will also deepen India-Africa partnership on clean energy, sustainable habitats, public transport and climate resilient agriculture.” The PM invited Africa to join an alliance of solar-rich countries which, he said, he would propose at the climate change meeting in Paris in December. On the Doha round of global trade talks under the World Trade Organization (WTO), Modi urged Africa to join India in its fight against the closure of the round, which is based on a development agenda for the third world.
SOURCE: The Business Standard
India and African nations today pledged to continue promoting investment and trade through opening of new markets and raising the level of economic partnership between the two sides. "We agree to... continue to work together in promoting investment exchanges and encourage establishment of direct trade relations through opening of new markets and raising the level of trade relations between the two sides in order to contribute to sustainable growth and economic development," said the Delhi Declaration issued at the third India-Africa Forum Summit. Both sides agreed to work closely together within the framework of the Tripartite Free Trade Agreement for the expansion of trade and investment linkages and extend the framework to other regional economic communities, it said. They were on the same page to support the establishment of the Continental Free Trade Area (CFTA) aimed at integrating Africa's markets in line with the principles laid down in the Abuja Treaty, establishing the African Economic Community and its resolve to support the Continental Free Trade Area Negotiating Forum to conclude the negotiations by 2017. They would fast-track implementation of the Duty Free Tariff Preference scheme offered by India since this would play "a significant role" in increasing trade between the two regions, the Declaration said, adding that both would strive for creating a conducive environment for trade facilitation in accordance with the WTO Bali Trade Facilitation Agreement.
In the infrastructure sector, there was agreement on intensifying ongoing cooperation in training, capacity building, consultancy and project implementation through concessional credit in infrastructure areas, including maritime connectivity, road and railway construction. According to the India-Africa Framework for Strategic Cooperation, the two sides would explore possible joint investments to establish a robust fibre optic infrastructure in Africa. India has also "taken note of" the request by the African side to further expand its Duty Free Tariff Preference Scheme for least developed countries for greater coverage. "Efforts should be made to promote private and public investment from Africa into India," it added.
Both sides agreed to enhance cooperation through training and collective negotiations on global trade issues, including at the WTO, to protect and promote legitimate interests of developing countries. They are also expected to step up ongoing cooperation in training, capacity building, consultancy and project implementation through concessional credit in infrastructure. Furthermore, it said the two sides agreed to train doctors and healthcare personnel through deployment of telecom and ICT in support of tele-medicine and e-health applications and strengthen public-private sector collaboration in pharmaceuticals.
SOURCE: The Economic Times
Australia today said it was working hard to finalise its "high quality, mutually beneficial" Comprehensive Economic Cooperation with India by the end of this year, saying it will be a great driver of commercial and other activities. "We are working hard to conclude this high quality mutually beneficial Australia-India comprehensive Economic Cooperation Agreement by the end of this year," Australian Minister for Trade and Investment, Andrew Robb, said. He said while negotiations had started five years ago, it had not proceeded faster, but it was decided by the two countries last year after Narendra Modi assumed office as Prime Minister, to "reignite and finish" the deal. "We are working to that time table. It will be a great driver of commercial and other activities between the two countries," Robb told a press conference here. With his country being a services-dominated economy, the agreement's focus will be on services- not just Financial and Legal but others including Health, Educational, Transport and Port Management. However there would be a Goods package, he said.
On issue of approving the coal mine and rail project of Indian business conglomerate Adani Group in Australia, which had been opposed by environmental groups there, he said such approvals are given after necessary regulations are passed. "It had passed all approvals. There is a pretty active green group (in Australia) and they are entitled to their point of view but as a government we disagree with some of the techniques that they are trying to get across their point of view," he said. Underlining his government's commitment for environmental protection, he said Australia was internationally ranked third in this area. "It is quite difficult to get through these and Adani project passed" all environmental regulations, he said. While a federal court had overturned earlier approval granted to the Group on environmental grounds, the government had reapproved the multi-billion dollar project recently as per environmental laws and subject to certain conditions. Australia will be 'delighted' to assist India in its endeavour to ensure 25 per cent of energy in 2050 is generated from nuclear power stations and that the supply will be based on demand, he said. Robb, whose country was a partner in last month's Global Investors Meet held by the state government, evinced interest in areas of dairy development among others with Tamil Nadu.
SOURCE: The Economic Times
Prime Minister Narendra Modi's visit to Singapore next month will elevate India's ties with this country to a strategic partnership, Finance Minister Heng Swee Keat said today, welcoming Indian government's efforts to simplify regulations and introduce tax reforms. "We will have the pleasure of welcoming Prime Minister Modi in Singapore next month. With this, we can look forward to an ever greater sharing of ideas, friendship, investment and trade between Singapore and India," Heng said at the opening of the 10th international conference on South Asia organised by the Institute of South Asia Studies (ISAS).
Addressing some 250 delegates at the two-day conference themed 'Politics and Economics of Land in South Asia', Heng underlined the strong bilateral relations between the two countries, going back to 50 years when Singapore gained independence. He highlighted the benefit of Comprehensive Economic Cooperation Agreement (CECA) which boosted bilateral trade to SGD 24.6 billion last year from SGD 5.9 billion in 2003. The CECA came into effect in August 2005. "We hope that CECA would widen the road for Singapore and India to engage, deepen linkages between South East Asia and India, and catalyse a bigger trade liberation movement," said Heng.
The Singapore Minister also applauded Prime Minister Modi's effort to make India the manufacturing hub of the world. "The world has noted India's enhanced focus in infrastructure investment, with increased investment in infrastructure, and the setting up of the Rs 20,000 crore (SGD4 billion) National Investment and Infrastructure Fund (NIIF). "Also, significant efforts are being made to simplify regulations and introduce tax reforms, such as through a comprehensive bankruptcy code, and efforts to implement a national GST (Goods Services Tax)," he observed.
Touching on the South Asia region, he said the countries are also becoming increasingly integrated within the region, as well as with the rest of the global architecture. "Momentum for economic cooperation has been building within South Asia. India and Pakistan have revitalised ministerial level negotiations on expanded trade. India and Bangladesh have also enhanced bilateral ties, including in power trade. This bodes well for South Asia, which is posed to be an engine of global growth," Heng said. ISAS, a think tank of the National University of Singapore, annually holds the conference with focus on South Asian countries. On October 12, External Affairs Minister Sushma Swaraj and her Singaporean counterpart Vivian Balakrishnan co-chaired the 4th Joint Commission Meeting during which they discussed ways to boost maritime cooperations, trade ties and cyber security among other strategic issues, setting a stage for Modi's visit from November 23. During the discussions, the two sides outlines a 'five S' strategy to ramp up bilateral ties - Scaling up trade and investments, Speeding up of air, maritime connectivity, Skill development, Smart city and urban rejuvenation and State focus in enhancing cultural ties.
SOURCE: The Economic Times
With online sales picking up and a rise in customer spending, textile retailers are seeing a turnaround in sales this Diwali after a sluggish season last year. Velmurugan A, Manager, The Chennai Silks, a textile retail chain, said the sales are showing a positive trend due to increase in customer spending for Diwali combined with the wedding season this year.
Spending per customer
This season spending per customer per piece of clothing has risen to ₹500 from ₹200 last year, he added. The online sales are picking up as well. Velmurugan said, “The number of online orders for this season is around 5,000 as compared to 2,000-3,000 last year.” Stating that Diwali sales took a hit last year due to incessant rain, Velmurugan said in order to facilitate customers, this year parking facilities have been improved. “We have doubled our parking availability to 200 for cars and 500 for two-wheelers.”
Outstation shoppers
Jeyasree Ravi, owner of Palam Silks, said apart from people in Chennai, the shop witnessed increase in the number of people coming from Tiruchi, Madurai and other southern districts for Diwali purchase. “If the footfall is 100, outstation shoppers constitute 20 per cent compared to 10 per cent last year,” she added. “Another trend we have noticed is the rise in the number of young customers who come to purchase sarees,” Ravi said. For every 10 persons who come to Palam Silks, five are youngsters aged between 20 and 30. They buy in bulk, ranging between six and 10, which was not the case earlier where per person purchase during the festival season was only two-three, she added.
Targeting youth
In order to attract the younger crowd, who possess more disposable incomes, industry players like RmKV and Palam Silks have launched light-weight silks that are easy to drape and comes in attractive colours and designs. K Sivakumar, Managing Director, RmKV, said the recently launched Lino light silk was designed to attract youngsters. Lino light-silk is a part of the collection launched for the season. The price for the new collections ranges between ₹15,000 and ₹42,000. Retailers like RmKV and The Chennai Silks are planning to launch an app, which would facilitate home delivery of silk sarees within city limits.
SOURCE: The Hindu Business Line
The World Bank has maintained its growth forecast for India at 7.5 per cent for 2015-16, but marginally lowered the projections for 2016-17 and 2017-18 to 7.8 per cent and 7.9 per cent, respectively. The projection is, however, more optimistic than by other agencies such as the International Monetary Fund, which has pegged India’s GDP (gross domestic product) growth at 7.3 per cent this fiscal. “While growth will very likely remain above 7 per cent in the next fiscal year, there is significant uncertainty about the momentum of the economy,” the World Bank said in its latest India Development Update, released on Thursday. While public investments have helped kick-start the investment cycle, it said further acceleration would depend on the investment rate picking up to 8.8 per cent over the next two financial years. The earlier Update, released in April, had pegged GDP growth at 7.9 per cent next fiscal and at 8 per cent in 2017-18. “Although India may be able to achieve fast GDP growth without export growth for a short period, sustaining high rates of GDP growth over a longer period will require a recovery of export growth,” it further said.
Reform areas
Though India is well positioned to weather the global volatility in the short term, the country will not remain immune to a slowdown in global demand and heightened volatility in the medium term, it noted. The World Bank also called for three crucial reforms in the economy to boost growth — improving the asset quality of banks; rolling out the goods and services tax (GST); and improving service delivery by States and local bodies. “While progress is visible in several areas, including improvements in the ease of doing business, some key reforms, most notably the implementation of GST can be a potential game changer for India,” said Onno Ruhl, World Bank Country Director in India.
The challenges
Underlining challenges before the economy, the report said the government’s efforts to lower the fiscal deficit next year onwards beyond the targeted 3.9 per cent of GDP this fiscal may have limited impact. Global crude oil prices are unlikely to fall further, mounting payments from contingent liabilities from the infrastructure sector, and implementations of the Seventh Pay Commission report would take a toll on the finances.
‘Carbon tax’
Terming the additional levies of excise duty on petrol and diesel this year as “implicit carbon tax”, the World Bank said that pricing reforms have led to a reduction in emissions. “The petroleum subsidy burden came down from 1.4 per cent of GDP in 2012-13 to 0.2 per cent in 2015-16, while excise duties for petrol and diesel increased by an average of 130 per cent in the fourth quarter of 2014-15 (year-on-year),” it said.
SOURCE: The Hindu Business Line
India might have become a better place for starting a business but it still takes 29 days and over 12 procedures to begin a venture. Marking a significant improvement, India has been ranked at the 130th position among 189 economies in the World Bank’s ‘Doing Business 2016’ report. The country’s ranking has jumped from 142nd spot last year, which was later revised to 134 after data corrections. “India made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business operations. This reform applies to both Delhi and Mumbai,” the report said. India’s overall ranking is based on ten factors — starting a business (155th rank), dealing with construction permits (183), getting electricity (70), registering property (138), getting credit (42), protecting minority investors (8), paying taxes (157), trading across borders (133), enforcing contracts (178) and resolving insolvency (136).
In terms of starting a business, India’s position has improved to 155 from 164 last year. Besides, the country’s has seen improvement in dealing with construction permits as well as in getting electricity. “Starting a business there requires 12.90 procedures, takes 29 days, costs 13.50 per cent of income per capita and requires paid-in minimum capital of 0 per cent of income per capita,” as per data collected for the report. With respect to dealing with construction permits, the country’s position has marginally improved to 183 from 184 while the ranking jumped to 70 from 99 in terms of getting electricity. However, India’s rank has dropped on two fronts — getting credit and paying taxes. With respect to getting credit, the country’s position has declined to 42 from 36 last year while it has declined to 157 from 156 in terms of paying taxes. On getting electricity, the report said the utility in Delhi made the process for getting a power connection simpler and faster by eliminating the internal wiring inspection by the Electrical Inspectorate. “The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination,” it added.
SOURCE: The Financial Express
In the open market, the rupee was down 30 paisa from Tuesday's closing, trading at 105.60 against the United States dollars. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 65.04 and for Euro stood at 71.75 on October 28, 2015. The local currency hovered in a range of 65.25 and 65.12 in the afternoon trade. Pound Sterling opened at Rs 158 (buying) and Rs 158.50 (selling) against same overnight value. The yen strengthened against its rival currencies in late Asian trade on Thursday, as investors bought the Japanese currency after unexpectedly strong industrial output data lowered expectations for an extra monetary easing measures from the Bank of Japan. Money market analysts said the record high was due to speculation in the market about the timing of a USA interest rate hike by the Federal Reserve. The USA dollar closed at Rs 105.20 for buying and Rs 105.45 for selling. The rupee had gained 4 paise to close at 64.93 per dollar on Wednesday at the Interbank Foreign Exchange market. It did not observe further change in the second session and closed at Rs 104 (buying) and Rs 104.25 (selling). Furthermore, lower opening in the domestic equity market and gains in global oil prices also put pressure on the domestic unit.
SOURCE: The Tribble Agency
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$ 45.90 per barrel (bbl) on 29.10.2015. This was higher than the price of US$ 44.56 per bbl on previous publishing day of 28.10.2015.
In rupee terms, the price of Indian Basket increased to Rs 2990.59 per bbl on 29.10.2015 as compared to Rs 2898.34 per bbl on 28.10.2015. Rupee closed weaker at Rs 65.15 per US$ on 29.10.2015 as against Rs 65.04 per US$ on 28.10.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 29, 2015 (Previous trading day i.e. 28.10.2015) |
Pricing Fortnight for 16.10.2015 (Sep 29 to Oct 13, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
45.90 (44.56) |
47.70 |
|
(Rs/bbl |
2990.59 (2898.34) |
3115.29 |
|
|
Exchange Rate |
(Rs/$) |
65.15 (65.04) |
65.31 |
SOURCE: PIB
A delegation of 12 members of the Confederation of Indian Industry (CII) which was recently on a three-day visit to Dhaka, Bangladesh was urged to invest in the country's weaving sector by domestic textile and garment manufacturers to meet the desired demand of fabric, as per Bangladeshi media reports. Expressing his views based on a meeting with the CII delegation, Fazlul Hoque, vice president of Bangladesh Textile Mills Association (BTMA), said that Indian entrepreneurs can invest in the weaving sector as there is an opportunity for growth. The weaving units in Bangladesh account to only 40 per cent of the fabric demand for garment production, leaving domestic manufacturers no choice but to import fabrics. “The objective of this mission will be to connect up at the highest level with the industry bodies and with business community of Bangladesh with specific reference to the textile sector and provide a learning platform to members from both the sides,” said CII on its website. The CII delegation was in Dhaka to explore investment opportunities in the textile sector and strengthen bilateral economic relations with Bangladesh. The members of the delegation also showed interest in exporting cotton to Bangladesh.
SOURCE: Fibre2fashion
Pakistan’s exports to EU which had reached $7.52bn in calendar year 2014 from $6.22bn over 2013, an increase of 21.24pc in the first year of GSP plus scheme is showing marginal increase in its growth. According to EU official data, Pakistan’s garments exports to EU reached $1.463 billion in January-July 2015 from $1.437bn over the corresponding period of last year. In euro terms, the value of garments exports to EU witnessed a growth of 26.78pc during the period under review and in quantity terms, exports of garments increased by 6.48pc to 104,467.10 metric tonnes from 98,110.30 metric tonnes over the previous year. With garments exports to EU increasing, the textile garments sector of Pakistan under GSP plus scheme appears to be the sole beneficiary of preferential access to the 28-nation European Union.
Contrary to this, exports of home textile dropped by 5.563pc to $934.35 million in Jan-July 2015 period this year from $989.39m over the corresponding period of last year. However, in euro terms, export of home-textile witnessed a growth of 17pc during the period under review. In quantity terms, exports of home textiles stood at 150,720.7 metric tonnes during the period under review as against 140,968.2 metric tonnes over the corresponding period of last year, showing an increase of 6.471pc. According to trade analysts, the decline in exports to EU is due to depreciation of Euro vis-à-vis dollar. There is a decline in export earnings of all countries when the exchange rate values are being adjusted. Further analysis shows that export of cotton and intermediary goods of textile also dropped by 19.5pc to $522.73m during the Jan-July 2015 period from $639.37m over the corresponding period of last year. The decline was also witnessed in terms of quantity, which dropped by 8.1pc during the period under review.
Another major commodity other than textile is carpets and rugs exports of which dropped by 7.06pc to $22.62m during Jan-July 2015 as against $24.34m over the corresponding period of last year. According to statistics, export of total textiles has dropped by 4.75pc to $2.943bn during Jan-July 2015 from $3.09bn over the corresponding period of last year. Textile alone constitutes around 80pc of the total exports to EU during Jan-July 2015 while the remaining 20pc are shared by all other products. The total exports to EU dropped by 15.46pc to $4.237bn in Jan-Aug 2015 from $5.012bn over the corresponding period of last year. But in terms of quantity, overall exports increased by 1.234pc during the period under review. This shows concentration of exports baskets in few products to EU as well.
SOURCE: Yarns&Fibers
The Association of Textile, Apparel & Materials Professionals (AATCC) will be hosting a workshop on textile testing which will be held on 9-10 December at its headquarters in Research Triangle Park, as per a press release. The workshop is designed for textile industry professionals who are responsible for product evaluation, specifications, and quality control for apparel and textile materials. The participants will learn to perform and interpret test results for around 20 colourfastness tests which include crocking, light, washing, and perspiration. Physical properties test methods include dimensional change, water repellence, and appearance retention and evaluation procedures. ASTM methods like D1424 Standard Test Method for tear strength of fabrics by falling pendulum apparatus, D5034 breaking strength and elongation of textile fabrics, and D3789 Standard Test Method for bursting strength of textile fabrics will also be discussed at the workshop. Sessions on basic colour theory and measurement will also be conducted.AATCC is the world's leading not-for-profit association serving textile professionals since 1921. AATCC provides test method development, quality control materials, and professional networking for members in about 60 countries throughout the world.
SOURCE: Fibre2fashion
As India held its biggest Africa summit with heads of 54 African countries, Chinese analysts played down the reports of competition between two Asian giants to gain influence saying that the two nations played different roles for the development of the African continent. State-run Global Times which featured news of the India- Africa summit on its front page quoted Chinese analysts as saying that the closer ties between India and Africa will contribute to South-South cooperation and dismissed media reports that New Delhi is trying to challenge Beijing's dominance in Africa as groundless. Fu Xiaoqiang, a research fellow with the China Institutes of Contemporary International Relations, said that Western media has been trying to provoke relations between China and India by highlighting words like "challenge" and "catch-up." "The African market is huge, and there is no competition or contradictions between China and India in their roles in Africa," Fu told the Global Times. He said that China has an advantage in infrastructure construction, while India, based on historic ties, developed cooperation with Africa in culture, labor and information technology.
He Wenping, an expert in African studies with the Chinese Academy of Social Sciences, said China is open to other countries' cooperating with Africa. "India is also a developing country and a member of the BRICS bloc, its better development is not a bad thing for China," He said. She said many of her friends in Africa said some Western countries have been labelling China's presence in Africa as new colonialism, but African countries are nevertheless still willing to do business with China. She said that more countries cooperating with Africa means more opportunities for Africa, which will benefit all sides. China is scheduled to hold the second China-Africa summit in Johannesburg, South Africa, in December. China and Africa have been holding a series of ministerial conferences since starting the first Forum on China-Africa Cooperation in Beijing in October 2000.
SOURCE: The Economic Times
India should join larger trade blocks like Regional Comprehensive Economic Partnership (RCEP) as it would be good for the nation, World Bank said. "There is lots of controversy on issues related to global free trade and regional trade pacts. On balance, I think it would be better for India to join regional trade pacts like RCEP. Joining something bigger is always good choice to make," the multilateral agency's Country Director in India Onno Ruhl said. Ruhl was replying to a query whether India should join regional trade pacts or not during the launch of World Bank's latest India Development Update.
The 16-member bloc RCEP comprises 10 ASEAN members ( Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six free trade agreement partners -- India, China, Japan, Korea, Australia and New Zealand. RCEP negotiations were launched in Phnom Penh in November 2012. The 16 countries account for over a quarter of the world's economy, estimated to be more than USD 75 trillion. It is under negotiations and is an extremely important institutional process which will have significant implications for India and other partners. Ruhl further said that World Bank is likely to invest around USD 5 billion in India to support its development objective.
On government's Skill India programme, the World Bank's Country Director in India said, "Skilling India starts with nutrition for children under age 2 and then goes to quality of primary education and then it goes to enrolment in secondary education and then it goes to enrolment in higher education and then it goes to connecting skills to connecting skills to private sector. Not just 6 months training."
SOURCE: The Economic Times
Indonesia President Joko "Jokowi" Widodo on monday expressed Indonesia’s intention to join the TPP while delivering a speech before representatives from a number of US companies. But according to economist Ina Primiana, government need to carefully reconsider the long term impact of joining the US-led Trans-Pacific Partnership (TPP) since the cooperation was deemed not necessarily beneficial for the country. In a said that when it comes to international trade agreements, they should really consider the benefits and impacts more widely. The government must work hard to ensure that the realization of Indonesia's participation in TPP in the next two years would not be counter productive to the improvement of industry competitiveness. However, the government should coordinate with industries and associations so that the industries will be able to make necessary preparations.She also said that Indonesia usually suffered from a trade deficit when it was involved in free trade agreements due to cheaper imported goods. For example, in terms of the textile and textile products [TPT] industry, will Indonesia be able to compete with Vietnam by joining TPP as Vietnam, the country's main competitor in the particular sector, had already joined the partnership.Earlier, Trade Minister Thomas Lembong said that the country could join the partnership two years after it finished all the necessary preparations, including providing incentives to local businesspeople.
SOURCE: Yarns&Fibers
The U.S.-India Business Council (USIBC) has applauded the Government of India’s efforts for undertaking significant efforts, resulting in improvements in India’s ranking on the World Bank’s “Ease of Doing Business” index. The President of USIBC Mukesh Aghi said that improvement in India’s position in the index sends a crystal clear signal that India is open for business. “The improvement in India’s position in World Bank’s Ease of Doing business index sends a crystal clear signal that India is open for business at a time when economic opportunity is certainly welcome,” said Aghi. “We commend Prime Minister Modi and his Cabinet for their efforts in seeing important reforms through, improving the overall investment sentiment and attracting long-term foreign investment in India,” he added. He said that Centre’s recent initiaves gives clear indication that the Prime Minister is committed to delivering on his promises and creating more jobs and prosperity for the citizens. “Government of India initiatives to provide greater tax clarity through moves like forming a body to simplify income tax laws, the recent MAT ruling, allowing businesses to start with ease, speedy settlement of commercial disputes are clear indications that the Prime Minister is committed to delivering on his promises and creating more jobs and prosperity for the citizens of the country,” he said. “The Council now eagerly awaits a successful conclusion of the government- to -government trade policy forum dialogue as well as the passage of the GST bill,” he added. Aghi further said that the USIBC looks forward to a strong partnership with India’s ambitious and important economic trajectory and will continue to advocate for the global investment community to view this improvement as a sea-change signal for India’s investment climate across all sectors.
SOURCE: The Financial Express
