INTERNATIONAL
Textiles Secretary SK Panda has said that the textile sector can potentially create 45-50 per cent of direct jobs in the rural India and be the driving force behind Skill India and Make in India initiatives, according to media reports. He was speaking at the Indian Cotton Conference 2015 organised in Gurgaon, by Indian Cotton Association Limited (ICAL) and co-hosted by Northern India Textile Mills Association (NITMA) on the topic of 'Dynamics of Make in India'. Textiles Commissioner Kavita Gupta who also attended the function suggested for branding Indian cotton against the world labels and emphasised on technical R&D needed to increase productivity. She pointed out that the average cotton productivity in India is 528 kg/hectare against 2,196 kg/hectare in Australia and 963 kg/hectare in the US. Around 1,000 people including representatives from 18 countries attended the conference. HS Cheema, President NITMA, highlighted China's decision to stop cotton imports and suggested that the government should provide direct subsidy to the farmers. Mahesh Sharda, President ICAL, Manikram Ramaswami, MD, Loyal Textiles and many international representatives from Switzerland, Vietnam, Singapore, Bangladesh and China were among those who addressed the conference.
SOURCE: Fibre2fashion
Only some land-levelling activities of the proposed textile park under the Scheme for Integrated Textile Parks (SITP), like the laying of the foundation stone for the construction of the compound wall and drainage construction has been carried out while all other construction activities have come to a halt due to the Handloom and Textile Department officials allegedly not releasing the share of the State government funds. Managing director of Gulbarga Textile Park, Subash Kamalapure, on Friday said that delay on the part of the Handloom and Textile Department officials to release the State government’s share of Rs. 2.5 crore released more than three years back was the main reason for stopping all construction work. The total cost of the project was Rs. 49 crore and Rs. 1.50 crore was the share of the Union government. The non-release of funds has also thwarted the Gulbarga Textile Park from getting the second installment of the cost of the project from the Union government. The textile park, which had attracted attention of major garment manufacturers like Raymonds, Levis and others, besides having common facilities like effluent treatment plant, washing facility, creches for children of women workers and rest rooms, it would have worksheds with different sizes to accommodate different machineries used in the garment manufacturing. The textile park also planned to produce the gloves and masks used in industries and hospitals and sanitary napkins and diapers in a largescale. Mr. Kamalapure said that the government had earlier imposed one condition that the project should get final clearance of the Union Ministry of Textiles which they have already obtained the final clearance three years back and fulfilled the condition for the textile park. According to Mr. Kamalapure, the officials of the Handloom and Textile Department have added new condition that the promotors — Gulbarga Textile Park — should invest their equity amount of Rs. 1 crore in the park.
SOURCE: Yarns&Fibers
As many as 18-20 lakh people are expected to visit the India International Trade Fair (IITF) at Pragati Maidan, which is beginning from November 14. "Per day, we are expecting over a lakh people and about 18-20 lakh during the full 14 days. We have all the arrangements in place," India Trade Promotion Organisation (ITPO) CMD L C Goyal told PTI. President Pranab Mukherjee will inaugurate the IITF 2015, in which about 7,000 firms from India and abroad are expected to participate. Goyal said the fair tickets will be available at all the Delhi Metro stations. Business visitors can buy the tickets online, he said, adding that from next year, "we will sell all the tickets online for both public and business visitors". The theme of this year's fair is 'Make in India'.
Besides domestic companies, firms from countries, including Afghanistan, China, Germany, Hong Kong, Indonesia, Iran, Pakistan, Russia, South Africa, South Korea and the UAE, would showcase their products in the fair. There will be free entry for senior citizens and the differently-abled on November 19-27. While Afghanistan is the 'Partner Country', Bangladesh is the 'Focus Country' for the event.
SOURCE: The Economic Times
The fall in Indian merchandise exports for the tenth straight month, ended September, 2015, was mainly driven by falling global commodity prices and not necessarily declining export volumes, economic research firm and ratings agency India Ratings and Research (Ind-Ra) said on Monday. Saying the volume demand for Indian exports may not have suffered significantly during the period, Ind-Ra said a global freefall in export prices of agricultural, crude oil and related products were to blame for heavy decline in the outbound shipments, value-wise. The rating agency said export volumes in certain categories continued to increase. For instance, it said automobiles exports rose 14.9 per cent in FY15, jumping from 7.3 per cent in FY13. Value of agriculture exports, which account for 9.7 per cent of total export in value, fell 19.1 per cent on a year-on-year basis. Similarly, crude oil and its products, (18.3 per cent of FY15 merchandise exports) declined in value, 45.4 per cent year-on-year. The decline in these two categories alone accounted for around three-fourths of the overall decline in merchandise exports, it said. Also, the sharp fall in the prices of other commodities along with lower crude oil rates has depressed prices of many intermediate and manufactured goods. Consequently, the value of exported items has shrunk. A weak euro also contributed to Indian merchandise exports witnessing an aggregate 15.1 per cent year-on-year fall, in dollar terms, over eight months leading to September.
The euro fell by 17.1 per cent over the last one year, Ind-Ra said. The rating agency said the slowdown in economic activity in countries in Asia and Africa, which account for more than half of India's merchandise exports, may be a bigger challenge to India's export growth than demand from the United States (13.7 per cent of merchandise exports) or Europe (18.1 per cent). Ind-Ra added the demand conditions in the US and Europe are likely to continue to grow at a gradual pace and, therefore, will support export volumes from India in the near term. However, export growth to Asian (49.6 per cent) and African (10.6 per cent) regions is likely to remain subdued, as economic activity in these regions has moderated due to falling commodity prices, volatile exchange rates, and moderating domestic demand. The agency believed the prices of most major commodities are close to their lowest. However, merchandise exports (in dollar terms) are expected to post single-digit negative growth for the rest of FY16, given that commodity prices will continue to be lower on a year-on-year basis. A marginal uptick in exports (in dollars) is likely from first quarter, FY17, driven by the base effect.
SOURCE: The Business Standard
The Indian economy is expected to expand by 7.2 per cent this financial year, lower than 7.3 per cent recorded in the previous year, economic grouping of developed nations, Organisation for Economic Co-operation and Development (OECD) said on Monday. It said difficulty in passing key structural reforms and large non-performing loans are holding the growth back, though the projected expansion is relatively robust in the context of global growth. In its latest economic outlook report, it retained India's economic growth, but cut the global growth forecast for the current year to 2.9 per cent citing a "further sharp downturn in emerging market economies and world trade". The growth rate for India projected by the Paris-based OECD, which comprises high income countries like the US, Australia, Japan as well as most European nations, would mean lower growth rate in 2015-16 than 7.3 per cent recorded in 2014-15.
OPTIMISM
The Indian economy is expected to expand 7.2 per cent this financial year, lower than 7.3 per cent recorded in the previous year, OECD said on Monday. It said difficulty in passing key structural reforms and large non-performing loans are holding the growth back But the projected expansion is robust in the context of global growth. OECD put future growth projection for 2016-17 at 7.3 per cent and 7.4 per cent for the succeeding year. However, the figures will be achievable only if structural reforms are further implemented, it cautioned. The report said rising public investment complemented by faster clearance of key projects has boosted growth. The private sector, on the other hand has increased investments due to better infrastructure and greater ease of doing business. Better wages and benefits public employees were responsible for supporting private consumption, it added. "Even so, large non-performing loans, high leverage ratios for some companies and difficulty in passing key structural reforms are holding the economy back. The current account deficit is widening as machinery imports increase, but is largely financed by rising foreign direct investment inflows," the report said.
According to government estimates, India's economic growth slowed to 7 per cent in the three months ended June compared to 7.5 per cent expansion recorded in the January-March quarter. While cutting the world economic growth estimate to 2.9 per cent for this year, OECD projected a gradual strengthening of global growth in 2016 and 2017 to 3.3 per cent and 3.6 per cent, respectively. Saying Brazil and Russia have experienced recessions and will not return to positive growth until 2017, it added, "A smooth rebalancing of activity in China and more robust investment in advanced economies is required," China's growth is expected to slow to 6.8 per cent this year and continue to decline gradually reaching 6.2 per cent by 2017 as activity rebalances towards consumption and services. Saying fiscal policy is assumed to remain supportive, OECD added public investment in energy, transport, sanitation, housing and social protection sectors is critical to raising living standards for all and can be financed through tax reform and reductions in subsidies. "The remaining slack in the economy and the disinflation process will provide room for some monetary easing by the end of the projection period, the report said.
Job creation, further improvement in ease of business, modernising labour regulations and implementing the goods and services tax were prescribed by OECD. It also noted despite recent hikes in coal, petrol and diesel duties, average effective tax rates on CO2 emissions remain relatively low with high levels of subsidy on kerosene and cooking gas. It said such subsidies should be reduced.
SOURCE: The Business Standard
The government is planning to strengthen one of its flagship programmes — Skill India Mission — when Prime Minister Narendra Modi embarks on his maiden visit to the UK this week, eyeing “substantial market access” in that market for a number of services. While trade and investments will be on Prime Minister’s priority list when he meets his British counterpart, David Cameron, for a bilateral meeting, the focus is going to be on skill development and entrepreneurship giving more teeth to the recently launched National Policy on Skill Development and Entrepreneurship, 2015, sources told BusinessLine . According to officials, international collaboration forms the basic ethos of Skill India initiative with greater private sector participation by letting them gain access to the international markets.
‘Natural partner’
The UK can become a “natural partner” in this objective as both countries share the same education system and qualification parameters, said an official, who refused to be named. It is learnt that both countries may also announce creation of a joint skill development centre and centres of excellence during the visit, especially in the area of food supply and logistics. According to a survey conducted by ICRIER, by 2025 India will have 25 per cent of the world’s total workforce while the UK is struggling with an ageing population. As a result, a qualified and trained workforce from India can help the UK meet its labour demands. “In terms of training and skill development, only around 5 per cent of the total workforce in India has formal skill training while in the UK, 68 per cent of the population has formal training. “Thus, India can learn from the UK on how to train its workforce. Given such strong complementarities, it is important to understand that within skill development what are the key areas in which there can be mutually beneficial collaborations,” said Arpita Mukherjee, professor, ICRIER. However, there are also significant concerns on relaxing the visa regime, which is being discussed under the services trade chapter in the proposed India-EU free trade agreement (FTA), which is presently in a hiatus.
Apart from this, defence manufacturing and clean energy will also be taken up for discussion between both sides. Both leaders are expected to meet on November 12. This will be third bilateral meeting between Modi and Cameron. They had last met on the sidelines of the UN General Assembly meeting in New York in September. Modi will be visiting the UK from November 12-14. Following his meeting with Cameron, Modi is expected to have a private luncheon with Queen Elizabeth on November 13 at the Buckingham Palace.
SOURCE: The Hindu Business Line
The rupee on Monday closed at its lowest levels over a month-and-a-half at 66.44 against the dollar even as demand for the greenback increased over a better than expected US non-farm payrolls data that boosts the case for a rate hike in the US later this year. The last time the rupee closed at this level was on September 16. In intra-day trade, the domestic currency fell to 66.50 a dollar. The benchmark 7.72% yielding 2025 bonds saw a massive sell-off on Monday with the yields shooting up to 7.749% in intra-day trade erasing all gains made during late September when the Reserve Bank of India (RBI) cut the repo rate by 50 basis points. MV Srinivasan, vice-president-south operations at Mecklai Financial Services believes the fall in rupee on Monday is a temporary phenomenon and the currency is likely to stabilise in a matter of two to three days. “One negative thing that can affect the rupee even at the current levels is the over-valuation by at least 10% and I do not think the Reserve Bank of India will mind the currency getting devalued a bit,” Srinivasan indicated. He observed that the RBI has many things on its mind including inflation, export performance, etc. and since the inflation remains under control, it can afford to allow the rupee to gradually decline. “On the question of current intervention by RBI, if the market volatility is not too high, we may not see any intervention by the central bank to prevent the rupee’s devaluation under current circumstances,” he added.
Foreign portfolio investors (FPIs) sold nearly $548 million of Indian debt in a matter of six days last week. This continuous sell-off in the debt market by foreign investors was last seen in May when FPIs sold paper worth $1.46 billion over a period of eight days. Since the last few weeks, sound bytes coming out of the US Fed Reserve has been highly indicative of a rate hike in mid-December when the Federal Open Market Committee holds its two-day meet. Srinivasan says the thing to be watched out for is the tone of the US Federal Reserve after the FOMC meet in mid-December which will give clues on the future of the rate trajectory. “If the labour data from the US continue to remain upbeat in the months ahead and other economic data too remain supportive for future rate hikes, it will be interesting to see the Fed’s timeline in the coming months for next rate hike,” he added. The dollar index which shows the strength of the greenback against a basket of other currencies was at 98.88 levels on Monday.
SOURCE: The Financial Express
Inflation probably edged up in October as food prices climbed while weak demand is expected to have hurt factory output growth the month before, a Reuters poll found. Price rises have been fairly muted this year, giving the Reserve Bank of India room to ease policy aggressively, amid wider concerns about a global slowdown. Consumer prices are expected to have risen 4.82 percent in October from a year earlier, faster than September’s 4.41 percent increase but still below the RBI’s January 2016 target of 6 percent, leaving some room for further interest rate cuts. “We are seeing a general disinflationary trend in the economy,” said Bhupesh Bameta, economist at Quant Capital. “Part of that will be offset by pulse prices. Overall we are seeing some uptick, but not a very significant one. “If the disinflationary trend remains intact then by the next policy meeting there will be a chance of a rate cut.” The RBI has already slashed rates four times this year, the latest move a larger-than-expected 50 basis point cut to leave rates at 6.75 percent, but a separate Reuters poll found it is unlikely to move again until the April-June quarter of 2016.
Rainfall in the critical June-September monsoon season was down 14 percent and a second year of drought caused shortages that drove up prices of pulses and vegetables, staples in the Indian diet. Favourable base effects also continue to impact inflation and any spike is likely to be countered by low oil prices, expected to remain subdued over the coming year. The poll of 30 economists also suggested industrial output growth slowed to 4.7 percent in September compared with a year earlier and from a 6.4 percent rise in the previous month. Output in infrastructure industries – which accounts for almost 40 percent of total industrial output – likely grew at its fastest pace in four months to 3.2 percent in September from a year ago. But a recent business survey painted a more dire picture for manufacturing. The Nikkei Manufacturing Purchasing Managers’ Index, compiled by Markit, showed Indian production growth slowed to a seven-month low in September hurt mainly by weak demand. “Although the PMI and IP are not correlated on a monthly basis, the impulse signalled by the PMI suggests a slacking off in momentum in the manufacturing sector in the quarter through October,” said Devika Mehndiratta, senior economist at ANZ.
SOURCE: The Financial Express
Vietnam's Finance Ministry has officially announced the list of goods which will enjoy tax reduction when the Trans-Pacific Partnership (TPP) agreement is signed and takes effect, the state-owned radio has said. Around 78 per cent to 95 per cent of taxes will be removed as soon as the pact comes into force. The taxes on the remaining goods will be removed within five to 10 years, excluding some sensitive goods. Several Vietnamese key export items in the TPP market including garments and textiles, agricultural products, seafood and shoes, in addition to wooden furniture, electronics and rubber, will enjoy zero tax three to five years later. In terms of import taxes, Vietnam has committed to applying a common tariff for all the TPP members, of which, 65 per cent of tariffs will be removed for cotton garments and textiles, animal feed, milk, rice, and leather, apart from leather products and fertilisers, the report said. The ministry said the TPP members had completed technical reviews and necessary procedures for preparation of the official signing at the beginning of 2016.
SOURCE: Fibre2fashion
A contraction in China's trade flows shows little alternative for the nation's leaders than injecting support for domestic demand as they struggle to achieve their growth target. Overseas shipments dropped 6.9 per cent in October in dollar terms, the customs administration said Sunday, a bigger decline than estimated by all 31 economists in a Bloomberg survey. Weaker demand for coal, iron and other commodities from declining heavy industries helped push imports down 18.8 per cent, leaving a record trade surplus of $61.6 billion. The report set a soft tone for a data-heavy week featuring key October releases. Industrial production and fixed-asset investment are forecast to show little pickup, even after six central bank interest-rate cuts and moves to spur local government spending. The silver lining: retail sales gains are seen underscoring the rising role of consumers. While an expanding middle class propels revenue and earnings at companies like Internet giant Alibaba Group Holding Ltd. - which on Wednesday hosts Singles Day, the year's biggest shopping event - it hasn't been enough to offset declining heavy industries. Exports helped stoke China's rapid-growth phase, a period that now seems over as the global economy decelerates. "The October trade data keep pressure on for more domestic easing," said Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong. "Measures are likely to continue to focus on shoring up domestic demand rather than weakening the currency. And over time the role of fiscal policy expansion should rise." Other figures this week are projected to show continued deflation in the industrial sector, and consumer-price inflation softening in October to a 1.5 per cent annual pace. That weakness would underscore the scope for additional easing by the People's Bank of China. Sunday's trade report showed exports to Japan slumped 9 per cent in the first 10 months from a year earlier, while those to the European Union declined 3.7 per cent. Shipments to Hong Kong dropped 11.7 per cent during the period. "Exports continue to face structural headwinds," said Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight in Singapore. "With recent economic data continuing to indicate some moderation in Chinese economic growth during the second half of 2015, the Chinese government may utilize additional monetary and fiscal stimulus measures to boost gross domestic product growth in 2016."
Exports to the US, China's largest trading partner, jumped 5.8 per cent in the first 10 months from a year earlier, while those to the Association of Southeast Asian Nations increased 4.2 per cent. Shipments to India rose 8.9 per cent. The central bank will maintain stable monetary policy and create a neutral monetary and financial environment for economic restructuring, according to the third-quarter Monetary Policy Implementation Report it released Friday. The PBOC also said the economy faces downward pressure and inflation is likely to be low. Those comments "signaled the PBOC's intention to prevent a secular fall in demand amid transition to the 'new normal,' " Goldman Sachs Group Inc. economists including MK Tang in Hong Kong said in a report Sunday. Output this year is on pace for the slowest expansion in a quarter century. The world's second-largest economy grew 6.9 per cent in the three months through September from a year earlier, the slowest quarterly increase since the start of 2009. Fourth-quarter growth will be at the same 6.9 per cent pace, according to economists surveyed by Bloomberg. The International Monetary Fund last month cut its outlook for global growth this year to 3.1 per cent from a July forecast of 3.3 per cent. The world economy will expand 3.6 per cent next year, the IMF predicted, less than the 3.8 per cent it projected in July.
China's imports from all 10 of the major trade partners listed by the customs administration declined in the first 10 months. Imports from Australia, a major source of China's iron ore during the real estate boom, plunged 25.7 per cent. China's imports declined for a 12th month, matching a record losing streak from 2009. Sunday's report showed the value of imported iron ore, crude oil and coal all slumped more than 40 per cent in the first 10 months of 2015 from a year earlier, highlighting lackluster demand from Chinese factories and construction sites. Stocks rallied a fourth day, with the Shanghai Composite Index adding 2.1 per cent at 10:30 a.m. local time. The benchmark for Chinese equities has rallied more than 25 per cent from the August low.
No Tolerance
Top leaders have signaled that they won't tolerate a sharp slowdown. President Xi Jinping said last week that average annual growth should be no less than 6.5 per cent in the next five years to realize the nation's goal to double 2010 GDP and per capita income by 2020. China still has ample ammunition, with a relatively small fiscal deficit and a central government with a light debt load. The central bank still locks up 17.5 per cent of bank deposits from the biggest lenders as required reserves, even after recent reductions. The record trade surplus helped spur a surprise increase in foreign-exchange reserves in October despite an erosion of holdings after the PBOC intervened to boost the yuan. The central bank's stockpile rose to $3.53 trillion last month from $3.51 trillion at the end of September, the PBOC said Saturday. "The large trade surplus could offset capital outflow" and curb expectations for the yuan's depreciation, Liu Ligang, chief Greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong, wrote in a note.
SOURCE: The Business Standard
The OECD trimmed its global economic forecasts for the second time in three months as slower growth in emerging markets spilled over into countries such as Germany and Japan. World output will expand 2.9 per cent in 2015 and 3.3 per cent in 2016, down from the 3 per cent and 3.6 per cent predicted in September, the Organization for Economic Cooperation and Development said in a semi-annual report published Monday. "Global growth prospects have clouded this year," the Paris-based organization said. "The outlook for emerging-market economies is a key source of global uncertainty at present." With Russia and Brazil in recession and China poised to deliver its weakest expansion in more than two decades, the economies that powered world growth in recent years are now slowing it down. Developed economies are feeling the brunt in the form of reduced demand for both commodities and manufactured goods.
China, Russia
The OECD barely changed its forecasts for Chinese output, pegging growth at 6.8 per cent this year and 6.5 per cent in 2016. Yet Brazil's economy is now seen shrinking 3.1 per cent this year and 1.2 per cent next, compared with contractions of 2.8 per cent and 0.7 per cent predicted in September. Russian gross domestic product is on track to drop 4 per cent in 2015 and 0.4 per cent next year, according to the report. Since the OECD didn't give an estimate for Russia in September, that compares with a June prediction for a contraction of 3.1 per cent in 2015 and expansion of 0.8 per cent in 2016. For emerging markets, "challenges have increased," the OECD said. Should their situation deteriorate, "growth would also be hit in the euro area, as well as Japan." Japanese GDP will grow 0.6 per cent this year and 1 per cent next, according to the report. While the 2015 forecast is unchanged, the 2016 one has been cut from 1.2 per cent. "The outlook for Japan remains softer than in other advanced economies, despite an anticipated upturn in real wage growth," the OECD said. "This reflects a larger drag exerted by weak external demand, especially in Asia, and strong fiscal headwinds."
Refugee Crisis
The euro area's expansion is now seen at 1.5 per cent in 2015 and 1.8 per cent in 2016, a reduction by 0.1 per centage point for each year. In terms of the economy, Europe's immigration crisis represents a much needed potential boost, the OECD said. It estimates that the influx of refugees may add between 0.1 and 0.2 points to growth in 2016 and 2017 thanks to extra government spending. "Asylum seekers need not impose an unmanageable economic burden," the OECD said. "If the refugees who stay are rapidly integrated into European society, they are likely to benefit the host countries." The U.S. expansion remains on track, with the OECD predicting growth of 2.4 per cent this year and 2.5 per cent in 2016. U.K. GDP is seen rising 2.4 per cent in both years, little changed from September. In the U.S., "output remains on a solid growth trajectory, propelled by household demand," the OECD said. "Monetary policy remains very accommodative, which is consistent with stubbornly below-target inflation, subdued wage pressures and hints of downward pressure on inflation expectations." The OECD also offered its first glimpse of 2017, predicting a global expansion of 3.6 per cent. It sees growth of 2.4 per cent in the U.S., 1.9 per cent in the euro area and 6.2 per cent in China.
SOURCE: The Business Standard
Angola wants to open up investment opportunities in textile, culture, industry food production, mining which is the most profitable and agriculture for Nigerian businessmen. Angolan Ambassador to Nigeria, Dr. Eustoiquio Januorio Quibato has invited Nigeria business community to explore the abundant investment opportunities in the country. Investment from Nigeria is expected to rise to $2.3 billion in the next 5-6 years. They are also making efforts to establish Angola-Nigeria chambers of commerce, with the aim of boosting economic and trade ties between the two countries. Nigeria is a good brother that they are counting so much on for support in development. Angola is a door for the big market for the southern and central market due to its strategic location. The ambassador speaking on the similarities between both countries said that Nigerians have the vision 2020 and Angola that of 2015 to 2017 both plans are aiming at the same objective. The one in Nigeria is same as the one in Angola. One of them is to fight poverty. He further said that they have to be committed not only to the government; they have to be committed to the community leaders, to the youths to promote local community development.
SOURCE: Yarns&Fibres
The Export Development Board of Sri Lanka is hosting the first high level Pak-Lanka business interaction forum to explore areas for enhancing trade relations and promoting bilateral investment between the two countries. IT will be held in Colombo on Nov 11, 2015. The Pak-Lanka trade and investment talks are taking place in furtherance to the understanding reached between Prime Minister Nawaz Sharif and Sri Lankan President Maithripala Sirisena in April this year when the latter visited Pakistan. The two sides had decided to take the bilateral trade and investment to new heights. The Trade Development Authority of Pakis¬tan is also organizing the Pakistan Single Country Exhibition in Colombo from Jan 15 to17, 2016 to showcase the whole range of Pakistan’s industrial sector to Sri Lankan consumers. More than 150 Pakistani companies are likely to attend the event. Commerce Minister Khurram Dastgir Khan will lead a high-powered delegation to the Pak-Lanka business forum which will comprise public representatives and people from manufacturing sectors, cement, pharmaceutical, food and beverage, sugar, shipping and construction. During his three-day stay in Sri Lanka, the commerce minister will call on President Sirisena and Prime Minister Ranil Wickreme¬singhe. He is also expected to hold talks with Lankan Minister for Industry and Commerce Rishad Bathiudeen, Minister for Public Administration and Management Ranjith Madduma Bandara and Minister for Megapolis and Wes¬tern Development Champika Ranawaka. Pakistan is the second largest trading partner of Sri Lanka in Saarc whereas Sri Lanka is the first country to sign free trade agreement with Pakistan in July, 2002, which was put into operation in June, 2005. Pakistan is an important export market for tea, followed by rubber, betel leaves and tamarind. For Pakistan, Sri Lanka is an important market for textile, agricultural items, cement, GI pipe, pharmaceuticals and machinery.
SOURCE: Yarns&Fibers
