Under the extant SEIS, the government offers exporters duty credit scrips at 5-7% of the net foreign exchange earned, depending on the nature of services. The government is in the process of formulating appropriate measures to boost services exports, which will be part of the upcoming foreign trade policy (FTP), commerce secretary Anup Wadhawan said on Thursday. The statement will likely reassure Covid-hit services exporters about continued policy support, albeit in different forms or structure, amid apprehension that the resourcestrapped government may substantially reduce benefits for certain services. Exporters have been awaiting the notification of support for FY20 and FY21 under the Service Exports From India Scheme (SEIS). Asked if the current SEIS would continue to be a part of the new FTP, Wadhawan told reporters: “When we firm up the new FTP, what we need to do for the services sector will be taken into account, based on stakeholders’ feedback and other inputs. And appropriate schemes and measures will be there for services exporters in the new FTP.” Sources had earlier told FE that the commerce ministry was weighing a proposal to overhaul the SEIS to make it more broad-based and fool-proof so that a wider pool of businesses, especially Covid-hit MSMEs, gets the succour. This revamped scheme, probably with a new name, could be part of the new five-year FTP, which would be effective from October 2021, they had said. Under the extant SEIS, the government offers exporters duty credit scrips at 5-7% of the net foreign exchange earned, depending on the nature of services. Sources had earlier said the government could also reduce benefits for consultancy and certain other professional services that it thought cornered a sizeable chunk of incentives without commensurate benefits. Moreover, a section of the government believes that since few players are grabbing most of the SEIS incentives, the scheme should be altered in such a fashion that it helps a large number of small businesses as well. Already, services exporters have urged the government to release SEIS benefits for FY20 at the earliest, which could be to the tune of `3,000-4,000 crore. The SEIS was introduced in the FTP for 2015-20; the validity of the FTP has now been extended up to September 2021. Services exports dropped almost 6% year-on-year in FY21 to $203 billion due to the pandemic, while merchandise exports contracted by just over 7% to about $291 billion, according to a quick estimate by the commerce ministry. Services trade surplus has been substantially offsetting the merchandise trade deficit. Despite the pandemic, the overall trade deficit dropped to just $13 billion, thanks to an $86-billion surplus in services trade in FY21.
Source: Financial Express
Higher import duties a big hurdle; India must negotiate harder and become part of RCEPlike trade deals NITI Aayog CEO Amitabh Kant does have a point when he says India’s manufacturers tend to promote protectionism; as recently as in 2018, India’s industrialists were clamouring for a rollback of trade reforms that helped the country integrate with the world. Now, telecom-equipment-makers have complained that, with South-East Asian countries allowed to export components to India—duty free—they don’t need to set up a plant here. They want changes in the agreement. It is possible there is an anomaly in this particular agreement, but India needs to plug into global supply-chains rather than build tariff walls around itself. As Kant says, in the globalised economy, multi-lateral trade agreements and FTAs are a reality, and bilateral trade relations will co-exist. And businessmen must not take the easy way out, that of producing largely for the domestic market by keeping out imports. At the same time, the government must send out the right signals and must convince industry that it is serious about boosting exports. There is no doubt that industrialists, including exporters, in India are handicapped; the infrastructure is terrible, credit is hard to access and expensive, while the labour laws are rigid, inhibiting manufacturers from scaling up production. If countries like Bangladesh have stolen a march over India, it is because of friendlier labour laws and also a more competitive currency rate. So, even as it exhorts businessmen to scale up their operations and sell to the world, the government must do its bit to address their concerns; the RODTEP is taking its own sweet time while refunds from earlier schemes remain unpaid. Analysis of 14 trade agreements in the Economic Survey for 2019-20 showed that manufactured products benefitted from eight of them, including agreements with ASEAN and Singapore. It also showed the bilateral trade agreements with Korea and Japan had exerted a negative impact. However, when overall merchandise exports were considered, only four trade agreements—MERCOSUR, Nepal, Singapore, and Chile—had helped. This was not really surprising since several primary products are typically included in the negative or sensitive lists of the trade agreements. But exports, as economists including Arvind Panagariya and Arvind Subramanian have pointed out, are key to India’s growth. This is even more true today when consumption, investments and government expenditure are all constrained. But, exports can’t be boosted if import duties are raised, which is what the Atmanirbhar plan suggests. India needs to sign FTAs and regional pacts, too; instead, it has opted out of global trade pacts, most recently, the 15-nation RCEP. New Delhi was unwilling to budge on its demands for an “auto-trigger” mechanism to protect the local market from dumping and also for strict rules of origins of imported products to check the abuse of tariff concessions. Some trade experts argue India has trade deficits with 11 of the 15 RCEP nations and has been unable to leverage existing bilateral trade pacts with some. If that is so, India should probably negotiate harder to become a member of RCEP since the latter now accounts for about a third of GDP, and this share is expected to go up to 50% by the end of the decade. It is understandable India’s businessmen want to work within their comfort zone and cater for the large home market. But, if India is to become a big exporter, it is going to take a change in mindset, and that change must start with the government; it must stop protecting industry.
Source: Financial Express
In particular, all attention will be on the manner in which the group of seven chooses to address the issue of equitable vaccine distribution and provision of financial flows to developing countries for tackling climate change and its impacts, particularly the $100 billion-a-year commitment made in Copenhagen. The G7 leaders’ summit, the first high-level, in-person meet since the pandemic broke out 14 months ago, is a critical moment for global cooperation. In particular, all attention will be on the manner in which the group of seven chooses to address the issue of equitable vaccine distribution and provision of financial flows to developing countries for tackling climate change and its impacts, particularly the $100 billion-a-year commitment made in Copenhagen. The G7’s response to the twin challenge of the pandemic and climate change will determine the credibility of democratic societies to respond to global crises. On Covid vaccines, the G7 must provide a plan to ensure that the world’s poorest and most vulnerable countries are not left behind in the vaccination race. As chair, the UK must galvanise the group to resolve this issue — be it through an engagement on the India and South Africa WTO proposal, or through donations of vaccines, or developing partnerships. India should, as we have suggested, offer to share with any willing producer anywhere technical know-how for its indigenously developed vaccines. On climate change, the G7 must step up to fulfil its commitment to mobilise financial flows to the developing world. This is critical if the world is to slow down global warming and limit the worst possible impacts of climate change. The invitation to the G7 Cornwall meet is a recognition of India’s role in maintaining an open and liberal world order. India must leverage its unique position, a leading emerging economy that has great deal in common with the world’s poorest countries, to be a voice of the global south. It can do this not by clinging on to dogmatic positions but by forging partnerships that are rooted in equity and pragmatism.
Source: Economic Times
The finance ministry may push ministries for a quick rollout and frontloading of the ₹5.54 lakh crore capital spending announced in the budget. The flagship Emergency Credit Line Guarantee Scheme (ECLGS), which now covers nearly 30 sectors including civil aviation and hospitals, could be expanded to more areas with easier conditions and provided higher capital support. Covid-related relief programmes and stimulus measures could be extended, given greater funding and expanded to support more businesses and sectors hit by the pandemic, said people aware of the matter. Additionally, with many states beginning to relax curbs, the finance ministry will push ministries for a quick rollout and frontloading of the ₹5.54 lakh crore capital spending announced in the budget. The flagship Emergency Credit Line Guarantee Scheme (ECLGS), which now covers nearly 30 sectors including civil aviation and hospitals, could be expanded to more areas with easier conditions and provided higher capital support. “Discussions are going on — a final call would be taken shortly,” said an official. Tax Breaks May be Extended. Income tax breaks provided to the construction and real estate sector may be extended. The rural employment scheme could be given more funds to provide assistance until the economy opens up fully and people are able to return to regular work.
Source: Economic Times
GST compensation of Rs 1.58 lakh crore was planned to be financed through back-to-back loans to be raised by the Centre while Rs 1 lakh crore was expected to be met through the GST compensation cess over FY22. States also want cess to be extended further. The Goods and Services Tax (GST) Council will meet on June 12 to decide on extension of compensation cess beyond 2022 and tax exemption or reduction in rate on various Covidrelated items including vaccines. The last Council, which met on May 28, decided to set up a group of ministers (GoM) to look into demands for tax relief on Covid-19 essentials, including PPE kits, masks and vaccine. “It (GST Council) will take up compensation to states as also discuss the group of minister’s report on Covid-19 medication and essentials,” a government official privy to the development said. GST compensation of Rs 1.58 lakh crore was planned to be financed through back-to-back loans to be raised by the Centre while Rs 1 lakh crore was expected to be met through the GST compensation cess over FY22. States also want cess to be extended further. Ratings agency NSE 0.25 % estimated that GST compensation of another Rs 61,000 crore remained pending for the 10-month period of April 2020- January 2021, for which funding options were uncertain. The GoM, headed by Meghalaya chief minister Conrad Sangma, had submitted its report on June 7. ET reported that the eight-member group had recommended that the GST on vaccines be determined by the GST Council and had referred the matter back to the Council. For Covid relief material such as medical grade oxygen, oxygen concentrators, pulse oximeters and Covid testing kits, the GoM suggested a 5% rate. While the central government decided to procure vaccines for the states, opposition-ruled states are expected to maintain their demand of zero rating GST of Covid-19 vaccines. The government on Monday announced that it would procure 75% of the manufacturers’ capacity and provide them free of cost to all states for vaccinating people aged 18 and above from June 21, while private sector hospitals can procure the remaining 25%.
Source: Economic Times
Welspun has laid the second investment foundation stone for an advanced textiles project with an investment of Rs 415 crore. Telangana government is developing a state-of-the-art weaving facility at Peddur village in Sircilla. The works are on for construction of 50 industrial sheds that will house 4,416 powerlooms and 60 warping machineries along with other common facilities in 88 acres, said IT and Industries Minister KT Rama Rao. Highlighting other developments in the textiles segment, he said Ganesha Ecosphere is setting up two new projects in Kakatiya Mega Textile Park, Warangal. A recycled polyester filament yarn plant with an investment of Rs 300 crore and a washed PET flakes and polypropylene fibre plant with an investment of about Rs 200 crore. Welspun has laid the second investment foundation stone for an advanced textiles project with an investment of Rs 415 crore, the Minister said. Food processing The Minister said that the State is focused on multiple sectors. Two new TSIIC food processing parks- Banda Timmapur and Banda Mailaram, have been launched this year and nearly fully occupied generating a total fixed capital investment of Rs 1,500 crore. Telangana is now the rice bowl of the country. Agriculture has been growing at break neck speed in the State thanks to the visionary work of developing the irrigation facilities, said the Industries Minister. Today, State is cultivating paddy in 1.06 crore acre. This contrasts with the situation where hardly 30 lakh cacre was under cultivation. This has resulted in the paddy production to touching three crore tonne compared to 30 lakh tonne a few years ago, he said. Telangana now is the largest producer of paddy, said Rao. With a view to enhance the earnings for farmers, the State is now working on food processing hubs. These will aid in creating local employment, reduce wastage and ensure better returns to the farmers, he said. Other sectors The State is ranked at the sixth place in the ranking of Logistics Ease Across Different States (LEADS) and is ranked at second place among the land locked States, he said. The Telangana Industrial Health Clinic initiative, which completed four years of operations, has handled 275 MSMEs and safeguarded assets worth Rs 95.5 crore and saving employment of 1,766 people. TAppFolio, the flagship m-governance initiative of the Government of Telangana, the only app in India that provides for online application and delivery of certificates to citizens, recorded a total 11.8 lakh downloads and close to 7,000 transactions a day, the Minister said. TWallet, the official digital wallet of Telangana State, launched in June 2017, has seen 12.3 lakh citizens registered. This is the first wallet for any State Government in the country. Close to 2.22 crore transaction worth Rs 12,128 crore have been handled with an average of 23,000 transactions per day, he said.
Source: Telangana Today
The agreement of the WTO member countries to move forward on the text-based negotiations of the proposal by India and South Africa for a temporary waiver from some provisions of Trade-Related Aspects of Intellectual Property Rights (Trips) indicated their in-principle acceptance of the objectives of the proposal. The agreement of the World Trade Organisation (WTO) member countries to move forward on the text-based negotiations of the proposal by India and South Africa for a temporary waiver from some provisions of Trade Related Aspects of Intellectual Property Rights (Trips) indicated their in principle acceptance of the objectives of the proposal, said union commerce secretary Anup Wadhawan………
Source: Economic Times
"The impact of the second wave of COVID-19 and the ensuing state-wise restrictions was seen across a variety of high frequency indicators in April-May 2021. Now that the fresh cases have moderated, and restrictions are being eased, we have placed our baseline GDP growth forecast for FY2022 at 8.5 per cent," ICRA Chief Economist Aditi Nayar said. With decline in number of fresh COVID-19 cases and easing of restrictions, the country's gross domestic product (GDP) will grow at 8.5 per cent in FY2021-22, according to credit rating agency NSE 3.36 % Ratings. It expects the gross value added (GVA) at basic prices (at constant 2011-12 prices) to grow at 7.3 per cent in FY2022. "The impact of the second wave of COVID-19 and the ensuing state-wise restrictions was seen across a variety of high frequency indicators in April-May 2021. Now that the fresh cases have moderated, and restrictions are being eased, we have placed our baseline GDP growth forecast for FY2022 at 8.5 per cent," ICRA Chief Economist Aditi Nayar said. Icra said if vaccine coverage is accelerated following the re-centralised procurement policy, the GDP expansion in FY2022 may be as high as 9.5 per cent, with a widening upside in Q3 and Q4 of FY2022. In FY2020-21, the country's GDP contracted by 7.3 per cent. Last week, the Reserve Bank of India (RBI) had projected real GDP growth at 9.5 per cent in 2021-22. For the full year, it expects the GDP growth to exceed the GVA growth by 120 basis points (bps), based on the expectations related to the value of taxes on products and subsidies on products in FY2022. It has taken into account the likely higher outgo towards food subsidies by the government in FY2022, relative to the budgeted level, following the decision to provide free food grains in May-November 2021. The agency has excluded the impact of the release of food subsidy arrears in FY2021, based on the clarification provided by the National Statistical Office (NSO). The monthly pattern of subsidy release by the government cannot be ascertained at present, Nayar said adding, "Therefore, we caution that the quarterly trend in GDP growth could differ from our baseline assumption (+14.9 per cent in Q1, +8 per cent in Q2, +5.6 per cent in Q3 and +7 per cent in Q4 of FY2022), based on when the subsidy pay-out is booked." The rating agency expects a prolonged negative impact of the second wave on consumer sentiment and demand, with healthcare and fuel expenses eating into disposable income, and less pent-up/replacement demand in FY2022 relative to FY2021. as well as remittances to weaken the rural sentiment and demand. "After the satiation of the pent-up demand seen during the festive season in 2020, purchases of consumer durables may be restricted, which would impact capacity utilisation in FY2022," it said. It said even as the second wave of COVID-19 infections in the country has dampened the near-term outlook for the Indian economy, vaccine optimism has led global commodity prices to soar. The agency expects subdued domestic demand to constrain pricing power, squeezing margins in many sectors. With the CPI and WPI inflation expected to average 5.2 per cent and 9.2 per cent, respectively, the agency expects the nominal GDP to expand by 15-16 per cent in FY2021-22.
Source: Economic Times
One of the persons said Reliance Brands plans to create fashion and lifestyle items in the price range of Rs 1,000-3,000, a departure from its traditional business of selling highend products to well-heeled Indians. Currently the products the Mumbai-based retailer sells are generally priced in the range of more than Rs 3,000 to lakhs of rupees. Reliance Brands, the premium-toluxury seller of Reliance Retail, is now planning to create an affordable fashion and lifestyle line to tap the growing market for such products among middle class Indians, two people familiar with the development said…………
Source: Economic Times
The LYCRA Company, a leader in sustainable solutions for stretch and performance technologies in the apparel and personal care industries, has announced the launch of a new campaign aimed at advancing discussions around circularity in textiles. The campaign uses a loop as a design device to show the transformation of textile waste into new fibre and fabric. The print and online advertising campaign, ‘Keep in the loop with LYCRA’, is an invitation for customers and industry experts to join the company in using resilient, sustainable materials that ultimately can be recycled at end of life, thus reducing textile waste and closing the loop in the value chain, the company said in a press release. “Through our ‘Keep in the loop with LYCRA’ campaign, we want to explore a variety of topics related to circularity -- from more sustainable raw materials to extending garment wear life to end-of-life solutions,” said Jean Hegedus, director of sustainable business development at The LYCRA Company. “Our recent introduction of Coolmax and Thermolite EcoMade fibres, created from 100 per cent textile waste, is one step in the right direction but there’s much more to do to address these important issues.” The campaign tagline of ‘Keep in the loop with LYCRA’ invites the industry to keep abreast of the latest circularity advancements from The LYCRA Company while also looking to drive awareness and collaboration. “Circularity is a key focus of The LYCRA Company’s Planet Agenda sustainability platform as we look to advance not just our own sustainability goals, but also those of the industry at large,” said Julien Born, CEO of The LYCRA Company. “Central to achieving this will require a collective effort with the help of industry collaborators so that together, we can maximise impact.”
Source: Fibre2Fashion
The Strategic Approach to International Chemicals Management (SAICM), a Genevabased global policy framework hosted by the United Nations Environment Programme to foster sound management of chemicals, in partnership with US-based advocacy group Natural Resources Defense Council (NRDC), has published a report and a policy brief on per- and poly-fluoroalkyl substances (PFAS) as a chemical class in the textile industry. The publications examine the scientific, policy, and practical reasons for approaching PFAS as a class, Canada-based International Institute of Sustainable Development (IISD) reported on its website dedicated to Sustainable Development Goals Knowledge Hub. Many chemicals used in textile production have adverse health and environmental impacts. PFAS and other toxic chemicals cannot be removed by wastewater treatment plants. Hazardous flame retardants, including brominated and chlorinated organic compounds, are also used in textile production. Many dyes contain heavy metals, such as lead, cadmium, and mercury, while azo dyes, used to treat textiles, contain carcinogenic amines. The cost to the textile industry of poor chemical management is estimated at €7 billion per year, indicated by the value opportunity of eliminating occupational illnesses by 2030, the documents said. The report, titled ‘Engaging the textiles industry as a key sector in SAICM: A review of PFAS as a chemical class in the textile sector,’ notes the textile sector’s environmental significance and the scope of PFAS used within it. Its global value chain includes companies of all sizes, which provides lessons for capacity building and enabling conditions that can extend to other sectors. Some industry initiatives have helped address the sound management of chemicals in the textiles sector, including the development of transparency standards, guidelines, and restricted substances lists. The report notes the opportunity to scale up actions and mainstream sound chemicals management across the entire value chain in the textiles sector. The policy brief, titled ‘A review of PFAS as a Chemical Class in the Textiles Sector,’ identifies enabling conditions for advancing improved public health and environment protection in the textiles sector. It includes recommendations for government and the private sector in approaching PFAS as a class for production and use control purposes. The brief recommends governments to eliminate non-essential PFAS production/uses and prohibit such exports to the developing world; promote research and development on safe alternatives for essential uses; review uses deemed essential to account for the development of alternatives; improve and expand global access to testing methods; facilitate data gathering, and international cooperation/capacity building; facilitate private sector initiatives through purchasing decisions and awareness raising; and strengthen collaboration between all actors in the textiles value chain. The brief suggests the private sector to adopt PFAS elimination policy at the highest corporate levels; understand the supply chain and provide educational materials/training to suppliers to facilitate PFAS identification; inventory known and potential PFAS sources and uses; assess essentiality of PFAS uses and alternatives, and publicize results while protecting proprietary information; conduct research and development on safe alternatives for identified essential uses; improve and expand global access to testing methods; implement policy and monitor progress; and report policy implementation results transparently and confirm through a third-party audit.
Source: Fibre2Fashion
A new focus report produced by Oxford Business Group (OBG), examines the potential that the West African textile and garment industry holds to become a driver of sustainable growth and major employer across ECOWAS. Titled “West Africa Textiles and Garments”, the report provides in-depth analysis of the industry’s history and prospects for development, together with the challenges it faces, in an easy-to-navigate and accessible format, featuring key data and infographics. The report notes that with only 2% of the raw cotton grown in West Africa processed locally, the scope for strengthening the textile value chain is huge. It also highlights the importance of attracting investors for private-public partnerships (PPPs) to facilitate the development of essential infrastructure, logistics and industrial zones for the industry. Here, subscribers will find case studies of countries where PPPs are already delivering results, including the recently inaugurated Plateforme Industrielle d’Adetikopé and its Textile Park in Togo, which is a collaborative venture between Arise and the government, and is flying the flag for sustainable industrial development in West Africa. In addition, the report considers the contribution that sustainable, value-added economic activities amongst local communities could make to Africa’s efforts to reduce carbon emissions and tackle climate change at a time when environmental, social and governance (ESG) issues have become a top priority. Bernardo Bruzzone, Africa Regional Editor for Oxford Business Group said: “While West Africa is the world’s sixth-largest cotton grower, 90% of the raw product is exported to Asia to be made into finished goods. “In a moment where the Covid-19 pandemic has disrupted supply chains, highlighting an increasing need to reduce global transports and companies’ carbon footprints, and with the entry into force of the African Continental Free Trade Area, this is a key moment to invest in the West African textile sector”, he said. Karine Loehman, OBG’s Managing Director for Africa, said that although textile manufacturing in West African countries remained largely focused on exporting raw cotton, a gradual shift towards producing finished items was taking shape. “With its access to an abundance of raw material (CMIA Certified), competitive wages & strategic location, West Africa is well placed to develop its textile industry,” she said. “Introducing value-added steps into the supply chain, such as spinning, weaving, dyeing, printing, finishing & garments, will provide local economies with a significant boost, while also helping to reduce imports from the Asian markets.” The focus report on Africa forms part of a series of tailored reports that OBG is currently producing, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.
Source: Myjoy online
Of almost 305,000 tonnes of textiles discarded in NSW last year, only 800 tonnes were recycled, a report has found. About 240,000 tonnes were sent to landfill, with the remaining 62,000 tonnes sent overseas by charities for reuse, according to the report by the Australasian Circular Textile Association (ACTA) for the NSW Environment Protection Authority. ACTA CEO and founder Camille Reed said the research showed the problem had been underestimated. "Rather than your 23, 27 kilos per person that has been used for the past several years, it's closer to 39, 41 kilos per person per capita of textile consumption," Ms Reed said. The figures include clothing and household items like bed linen, curtains and furnishings. ACTA used the data to estimate that close to 1 million tonnes of textiles were being consumed in Australia each year, and the issue was probably being under reported. What a waste Reuse and recycling company SCRgroup's national executive for business development and communications, Alexis Todorovski, says more needs to be done to tackle waste, especially as a lot of the material that ends up in landfill could instead be reused. "Reuse is the least energy intensive, it's the best thing for the environment," she said. While an emerging recycling industry was an important next step, Ms Todorovski said it was "almost pointless" to consider unless more textiles could be prevented from ending up in landfill. "So if we can focus on that first, and then after that, look at technology and potential avenues that we can use to treat material that's not fit for reuse," she said. "It's a huge [amount] of material that does go into landfill, and it is alarming, and it should be the first thing that we are addressing." Brands urged to design for 'end-of-life' Ms Reed said industry, government and consumers all had a part to play in tackling the problem. She said consumers should invest in higher-priced items and garments, as well as research companies and brands or ask them for information about their processes. "We know once we purchase higher-price goods, we usually keep them in our lives for a bit longer, rather than something that's cheap that we see as quite replaceable," she said. She said "brands, at this point, could be designing for end-of-life consideration". That could mean incorporating more sustainable materials and designing with end-of-life in mind for trims and hardware. About 60 per cent of textiles are plastic NSW EPA organics manager Amanda Kane said buying quality items could help to stem the waste. "Buy quality clothing when you can — if you can afford it — and clothing that can be reused or repurposed, like natural fibres," Ms Kane said. "The challenge with textiles ... [is] the fact that the large quantity of textiles is actually plastic waste — about 60 per cent of textiles are synthetic and then the remainder are organic. "It's a challenging waste stream, and we're starting from the beginning I think really, or really early stages in NSW." But, Ms Kane said, the situation was not completely dire. "There's always hope, there is always hope," she said. Ms Reed said governments could be more proactive in helping to cut down on waste. "There's also opportunity there to incentivise brands and retailers through tax or tariffs or something to recognise that there's a conscious impact there, either for the product being imported or where it's ending up at end of life," she said. A national summit is expected to be held later this year to develop a framework for a circular economy for clothing textiles.
Source: ABC Central West
