INTERNATIONAL
The new interest subsidy scheme for textile exports has been welcomed by the industry, while urging its ambit be widened. The new Interest Equalisation Scheme, earlier termed the Interest Rate Subvention Scheme, on pre-shipment and post-shipment of garments, will boost cotton textile export, said R K Dalmia, chairman, Cotton Textiles Export Promotion Council (Texprocil). The Cabinet Committee on Economic Affairs has approved a three per cent subvention scheme for five years, with retrospective effect from April 1, 2015, to be reviewed after three years. A big relief for the sector, as exports have been declining for a while. The new scheme will allow garment makers to compete with Bangladesh, Pakistan, Sri Lanka and Vietnam, their competitors, in developed country markets. “The scheme will provide a much-needed boost to export of cotton textiles, as all categories of fabrics and made-ups have been covered. Exporters were keenly looking forward to this, as they are facing depressed market conditions and declining exports,” said Dalmia. The scheme is not available for cotton yarn and merchant exporters. Dalmia said the former are also passing through difficult market conditions and should be covered under the scheme. Naishadh Parikh, chairman, Confederation of Indian Textile Industry, said: “(Our) major markets are experiencing negative growth. Indian exporters are handicapped by higher custom duties on import of textiles in major markets. (This) scheme, coupled with the recently revised Merchandise Export from India Scheme, should help in reversing the trend of falling exports across the textile value chain.” In the present scenario, the differentiation between manufacturers and merchant exporters is diminishing. There is no reason why the latter should be denied the benefit of a concessional rate of interest on export finance, said Texprocil. Texprocil urged the government to include cotton yarn under the scheme and also to extend the benefit of the scheme to the merchant exporters.
Source: Business Standard
Terming India as the “only shining star globally”, Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman on Friday expressed hope that the country would clock a growth rate of 7.5 per cent to 7.8 per cent this fiscal. “The government has been committing itself to increased public spending in infrastructure, which is the main route through which core industries like cement will get a boost, which in turn will lead to job creation and boost the economy,” she said at the valedictory session of the Resurgent Rajasthan Partnership Summit here. Sitharaman’s comments come just days ahead of the release of data on gross domestic product for the second quarter of the fiscal. The economy had grown at 7 per cent in the April-June quarter of 2015-16. Commenting on the ‘Ease of Doing Business’ rankings of States, the Minister expressed hope that Rajasthan would go ahead with more reforms and come third on the list in the next report. “In the last one-and-a-half years when the ranking was done, Rajasthan was ranked at the sixth place,” she noted. The Minister also announced that the government would set up a branch of the National Institute of Design in Rajasthan.
Source: The Hindu Business Line
India is seeing increased investment, on account of public infrastructure development and private investment, according to an OECD report Boosted by an improved business environment, the Indian economy is projected to see “one of the highest levels” of growth among emerging Asian countries, a report by Paris-based think tank, the Organisation for Economic Co-operation and Development (OECD), said on Friday. While projecting an economic expansion of 7.2 per cent for this year and 7.3 per cent next year for the country, OECD noted large non-performing loan is a potential barrier to continued growth. “Real growth in (the) emerging Asia is projected to average 6.5 per cent for 2015 and 6.2 per cent annually over 2016-20. Growth will continue to slow in China, while remaining strong in India at one of the highest levels in the region,” OECD said. The emerging Asia refers to economies of Southeast Asia, China and India.
For the 2016-20 period, India’s average real gross domestic product (GDP) growth is anticipated to be 7.3 per cent, it said. “Growth in the Association of Southeast Asian Nations (Asean) region is projected to average 4.6 per cent in 2015 and 5.2 per cent over 2016-20, led by growth in the Philippines and Vietnam among the Asean-5 and in the CLM (Cambodia, Lao PDR and Myanmar) countries. “Private consumption will be a large contributor to overall growth,” OECD’s economic outlook report for Southeast Asia, China and India said. The report was produced in cooperation with the United Nations Economic and Social Commission for Asia and the Pacific and the Asian Development Bank Institute. According to the report, India is seeing increased investment rates, on account of public infrastructure development and private investment motivated by improvements in the business environment, though passing some key structural reforms is proving difficult.
“Private consumption is also increasing, thanks in part to higher wages and improved benefits for public sector employees. Domestic financial risks remain potential barriers to continued growth in India, particularly large non-performing loans and the high leverage ratios of some firms,” it noted. Further, the report said that business growth in Southeast Asia, China and India has been supported by foreign direct investment inflows to the region.
Source: Business Standard
The Indian unit resumed higher at 66.10 per dollar as against yesterday's close of 66.18. The rupee ended steady against the American currency at 66.19 per dollar at the Interbank Foreign Exchange here today in view of steady dollar in the overseas market. The Indian unit resumed higher at 66.10 per dollar as against yesterday's close of 66.18 and moved up further to 66.07 on selling of dollars by banks and exporters. However, it washed out initial gains and dropped to 66.27 per dollar on fag-end dollar demand before closing at 66.19 as against 66.18 yesterday, showing a marginal loss of one paise or 0.02 per cent.
Source: Times of India
While some states favoured Rs 10 lakh turnover a year, others advocated 25 lakh; Jaitley may name the chairman of the panel at the next meeting in December The proposed national goods and services tax (GST) continues to face obstacles, as seen on Friday, barely a week before Parliament is to begin its winter session where the constitutional amendment to enable it is to come up. At a meeting of the empowered committee of state finance ministers (EC) on the tax, there were clear divisions on the threshold above which a GST should apply. A committee chaired by the government's chief economic advisor, Arvind Subramanian, is to soon give its recommendation on the GST rate. The finance ministry has said a high rate would be counter-productive. At the EC meeting, many felt the rate could be fixed at 18 per cent. Some such as Punjab, Chhattisgarh and Delhi were agreeable to the Union government proposal for the threshold at Rs 25 lakh annual turnover of a company; others wanted Rs 10 lakh. "There was divided opinion," Delhi's deputy chief minister and finance minister, Manish Sisodia, told reporters after the meeting. He was elected chairman for the day -- K M Mani, the chairman till now, has resigned as finance minister of Kerala over corruption charges. Sisodia said Finance Minister Arun Jaitley would select the next chairman at the next meeting, expected next month. Sisodia decided a sub-committee should be formed to have enough data on threshold levels, so that a decision could be based on facts, not "states' prejudices". The sub-panel is expected to give its report before the next EC meeting. Punjab finance minister P S Dhindsa said those favoring Rs 25 lakh of turnover argued that the cost of administration would go up if lowered to Rs 10 lakh. While 60 per cent more assesses would come under the net, revenues would go up by only four to eight per cent. He said there was also no unanimity over a threshold for a composite GST. Punjab wanted it at Rs 75 lakh a year but many want it at Rs 25 lakh. Later, economic affairs secretary Shaktikanta Das said a high GST rate would be counter-productive. Sisodia said simple rules and administration was more important than just low rates. A sub-panel of the EC had earlier suggested close to a 27 per cent GST rate. This was referred to the National Institute of Public Finance and Policy. Later, the Subramanian panel was formed. Fixing the rate is actually for the proposed GST Council, to be set up once the Constitutional amendment is passed. The government is much short of the needed votes in the Rajya Sabha. Asked whether a GST would be implemented from the coming April, when the next financial year begins, Sisodia evaded a direct reply. "It is hard for me to say when the bill is yet to be cleared by Parliament," he said."
Source: Business Standard
Terrorism, trade and South China Sea dispute are expected to dominate discussions at the 13th ASEAN-India Summit likely to begin later today with Prime Minister Narendra Modi and other Southeast Asian leaders reviewing the ASEAN-India cooperation and charting out its future direction. The Prime Minister arrived here this morning to a film star’s welcome when several ethnic Indians, who waited patiently outside his hotel for his motorcade to arrive from the airport, cheered loudly as he got out of the car while taking photos with their mobile phones.
New plan of action
India and the leaders of the 10-member grouping will review the new Plan of Action (2016-2020) to further enhance ASEAN-India cooperation along the politico-security, economic and socio-cultural pillars. The two sides will also exchange views on regional and international issues of mutual interest or concern.
Act-East Policy
The ASEAN-India Strategic Partnership has acquired further momentum after the Act-East Policy by Prime Minister Modi at the 12th ASEAN-India Summit in Myanmar. India and ASEAN have 30 dialogue mechanisms including a summit and 7 ministerial meetings in External Affairs, Commerce, Tourism, Agriculture, Environment, Renewable Energy and Telecommunication. ASEAN (Association of Southeast Asian Nations) is India’s fourth largest trading partner. India is the sixth largest trade partner for ASEAN.
India-ASEAN trade
Trade between India and ASEAN stood at $76.52 billion in 2014-15. India’s exports to ASEAN were $31.81 billion and its imports from the grouping were $44.71 billion. The ASEAN-India economic integration process got a boost with the creation of the ASEAN-India Free Trade Area in July this year, after the entry into force of the ASEAN-India Trade in Services and Investment Agreements. Negotiations on a Regional Comprehensive Economic Partnership (RCEP) Agreement involving the ASEAN countries and its 6 FTA partners, including India, have seen some breakthroughs and are expected to be concluded in 2016.
Source: The Hindu Business Line
Indo-Jordanian business cooperation, an interactive session was organized by the Indian embassy in Jordan on Wednesday. India is Jordan’s fourth largest trading partner with $2.2 billion in trade and probably the biggest investor in textile sector and phosphate. At the session, titled "Make in India and Make in Jordan"-Harnessing the Synergies, which hosted Jordanian leading industrial figures and businessmen, speakers from Jordanian side highlighted investment opportunities available in Jordan. Chairman of Jordanian Business Association Hamdi Tabbaa, in order to reach trade target of $5 billion in 2025 proposed broadening the commodity base and of utilizing comparative advantage of each country in the service sector such as information technology, construction, tourism, education and health. He said that there are great opportunities to set up joint investment projects in the field such as textile, clothing, pharmaceutical, automotive, medicine and Dead Sea products, renewable energy and fertilizer industry, and of establishment of small- and medium-sized projects as well as support such as finance, training and technology transfer.He called on Indian investors to take advantage of Jordan's geostrategic location, security, stability and attractive business environment as well as its free trade agreements with Arab countries, the US, Europe, Canada and Singapore. The Indian Ambassador Anil Trigunayat briefed the gathering on business opportunities available in India under various initiatives by the new government in India. He highlighted opportunities available under "Make in India", “Digital India”, “Clean India”, “Skill India” and “Start-up India” initiatives. He said there are large opportunities to increase economic exchange between India and Jordan, following a state visit of President of India to Jordan last month and the signing of six inter-governmental agreements and 12 agreements between universities. To realize the potential, the government of India recently announced a line of credit worth $100 million for enhancement of trade and investment in Jordan, the ambassador noted. The first Indo-Jordan Business Forum to be held in India in January 2016.
Source: Yarn and fibre
The United States has raised issue over increase in incentive by Indian government to support exports of several products which includes textile while expanding the scope of the Merchandise Exports from India Scheme (MEIS) this October. The Indian government has included exports of cotton fabrics, both woven and knitted, and made-ups to leading markets including African countries under the MEIS. Under the World Trade Organisation's agreement on subsidies and countervailing measures, when the export share of a developing country with per capita income below $1,000 a year touches 3.25% in any product category for two consecutive calendar years it is deemed to have gained "export competitiveness". Such a country is then required to phase out export subsidies for the items for eight years from the second year of breach. The WTO mandates developing countries to phase out the export subsidies within the eight-year period, preferably in a progressive manner. The WTO had in 2010 asked India to consider phasing out the subsidies for textiles and clothing. As per the agreement, a developing country member shall not increase the level of its export subsidies, and shall eliminate them within a period shorter when the use of such export subsidies is inconsistent with its development needs. According to official, in the Cotton Textiles Export Promotion Council, although India has crossed the export limit but currently the market is moving slow. As for the removal of subsidies, they can either gradually phase out or immediately discontinue them in 2018 on a pre-decided date. The US is alleging violation of global trade rule for export competitiveness in textiles saying India cannot give additional subsidy during the phase-out period.
Source: Yarn and fibre
Continuing with the ongoing downtrend, Taiwanese textile and apparel exports fell 5.28 per cent year-on-year to $8.226 billion during the period from January 4, 2015 to September 4, 2015, according to the data from the Taiwan Textile Federation (TTF). According to the data, Taiwan exported $661.315 million worth of fibres during the eight-month period, which accounted for 8.04 per cent of all textile exports from the country. Yarn exports earned $1.23 billion for Taiwan, while fabric exports fetched $5.575 billion, accounting for 14.96 per cent and 67.77 per cent share in all Taiwanese textile and apparel exports during the period under review. Apparel exports from Taiwan were valued at $496.208 million, whereas made-ups accounted for $262.794 million. Vietnam and China were major markets for Taiwanese textiles with these countries importing goods worth $1.629 billion and $1.534 billion, respectively, during the period under review. Region-wise, the EU-28 nations imported $368.711 million worth of textiles and garments, accounting for 4.48 per cent share of all textile and clothing exports made by Taiwan during the period, while the US imported goods valued at $669.181 million, contributing 8.13 per cent to Taiwanese exports. Bulk of Taiwanese textile and garment exports were destined to the neighbouring Asean region, which imported $2.983 billion worth of products, accounting for 36.26 per cent share in all Taiwanese exports. During the same period, Taiwan’s textile and clothing imports stood at $2.567 billion, registering a growth of 2.3 per cent year-on-year. More than half or $1.318 billion worth of imports belonged to the apparel category, whereas fibre imports accounted for $358.811 million, yarn $316.427 million, fabric $345.191 million, and made-ups $229.311 million.
Source: Fibre2fashion
An inside view of a textile millHuge amount of investment poured into the Vietnamese textile sector, especially over the past year, has started raising environmental concerns, according to Vietnamese media reports. Investment in textile projects began to grow last year, when foreign investors learnt that Vietnam is going to be one of 12 signatories to the Trans Pacific Partnership (TPP) agreement. So far this year, about $3.5 billion or over 30 per cent of the $11 billion worth of foreign direct investment attracted by Vietnam is for textile and garment projects, according to the data from the Foreign Investment Agency. The new investments include the $660 million textile and garment project of Tukish Hyosung Company in Dong Nai province, the $274 million textile factory of Polytex Far Eastern in Binh Duong province, and the $300 million investment by Hong Kong based Worldon Vietnam for textile and garment project in HCM City. Hong Kong based TAL Group and the Chinese Texhong Group have also registered textile and garment projects in Vietnam. However, this sharp and sudden increase in investments is now beginning to raise environmental concerns. The Ministry of Planning and Investment has warned about the import of outdated energy consuming technologies by foreign investors, and has asked provincial authorities to thoroughly examine projects before issuing licenses to them. The ministry wants to make sure that new projects meet environmental and technological standards, as well as the occupancy rate in industrial zones. In fact, some provinces like Da Nang have already started saying 'no' to projects with high environmental risks. (RKS)
Source: Fibre2fashion
