The development comes a month after London announced its 14-week consultation with its industry until August 31 ahead of the formal trade negotiations. The ETP is a precursor to a full-fledged free trade agreement with the UK. The development comes a month after London announced its 14-week consultation with its industry until August 31 ahead of the formal trade negotiations. The ETP is a precursor to a full-fledged free trade agreement with the UK. India has initiated stakeholdertalks on an Enhanced Trade Partnership (ETP) with the UK, with the commerce and industry ministry reaching out to businesses for suggestions on priority areas, sectoral thrusts and concerns the proposed would address. Stakeholders have until July 25 to send in their responses. The development comes a month after London announced its 14-week consultation with its industry until August 31 ahead of the formal trade negotiations. The ETP is a precursor to a full-fledged free trade agreement with the UK “Stakeholders can give their comments on tariffs and market access issues in goods, rules of origin and certification issues, standards, intellectual property, geographic indications, government procurement, e-commerce, and trade and environment sustainable sustainability,” said an official. The ETP aims at reduction or removal of tariffs on whisky and automotive products, and removal of barriers to trade in food and drink, services, and healthcare and medical devices sectors. “An FTA with the UK will allow us to explore futuristic opportunities in trade and investment…and enable greater access to Indian service providers,” the official said. The two sides had decided earlier this year to launch an ETP to develop a roadmap that would lead to a potential comprehensive FTA including considerations on an interim pact on a preferential basis. India's goods exports to the UK shrank 6.4% in FY21 at $8.2 billion.
Source: Economic Times
The commerce and industry ministry is trying to persuade the revenue department to allow non-export manufacturing units that operate within SEZs to take advantage of the infrastructure available in the zones to produce only for the domestic market. allow. “The revenue department is examining the details of the proposal for domestic manufacturing and is yet to give its consent. But the commerce ministry continues to push for it as it believes it will not cause any revenue loss to the exchequer, while helping manufacturers improve their efficiency and SEZs to utilize their spare capacities. business Line.
Tax Benefits
As per the proposal, if manufacturing units are allowed to set up shop in SEZs for domestic sale, they will not be entitled to any tax benefits accruing to SEZ units, which include zero rating of GST. On the taxation front, they will be treated as any other entity in the country outside SEZs, and their sale in the domestic market will not attract customs duty. “There are many manufacturing units who want to set up shop in SEZs not because of tax benefits but because of the excellent infrastructure that exists there. Competitive infrastructure with integrated real estate, power and transport facilities and smooth administrative processes is a big attraction,” the official said. Also, most of the SEZs in the country are operating at low capacity, and allowing domestic manufacturing units will improve space utilization. With business bearish related to the pandemic, SEZ developers are keen to take more.
Baba Kalyani Panel
This proposal was also reflected in the recommendations made by the Baba Kalyani-led committee set up by the Ministry of Commerce and Industry to study India’s current SEZ policy. The objective of the committee was to evaluate the SEZ policy and make it WTO friendly, suggest measures for optimum utilization of vacant land in SEZs, suggest changes in SEZ policy based on international experience and merge SEZ policy with other government schemes. . Coastal Economic Zone, Delhi-Mumbai Industrial Corridor, National Industrial Manufacturing Zone and Food and Textile Park. The committee had submitted its recommendations in November 2018. The commerce ministry is also looking at proposals made by SEZ developers and units to allow existing SEZ units to sell part of their product in the domestic market at a lower customs duty to free trade agreement partners such as South Korea or Japan. are presented. “Here, one really needs to look at the items that are being imported from the FTA partner countries and maybe extend the same conditions to the items from SEZ units. This proposal is also being discussed with the Revenue Department. According to government data, there are 265 operational SEZ units and 425 units in India that have been formally approved with a total investment of Rs 6,07,679 crore as of 31 December 2020. Exports from SEZs declined 7 per cent to ₹5,53,396 crore (YoY) in the April-December 2020-21 period.
Source: The Hindu
The Indo-Japanese friendship and partnership during the COVID-19 crisis is more relevant for global stability and prosperity, Prime Minister Narendra Modi said on Sunday and called for further strengthening of the ties between the two countries. The PM was speaking after virtually inaugurating a Japanese Zen garden and Kaizen Academy set up at the premises of the Ahmedabad Management Association (AMA) here. In his address via video conference, Modi said the opening of the Zen garden and the Kaizen Academy here "is a symbol of the spontaneity and modernity of relations between India and Japan". "The current Prime Minister of Japan, Yoshihide Suga, is a very straight-forward person. PM Suga and I believe that during the time of this COVID-19 pandemic crisis, the IndoJapanese friendship and our partnership has become even more relevant for global stability and prosperity. Today, when we are facing several global challenges, it is the need of the hour that our friendship and relationship get stronger day by day," Modi said. He said efforts like setting up of the Kaizen Academy are a beautiful reflection of this relationship. "We also have a strong belief in centuries-old cultural ties, and a common vision for future. Based on this, we have been continuously strengthening our special strategic and global partnership over the years. For this, we have also made a special arrangement of 'Japan Plus' (team of officials to promote greater Japanese investments in India) in the PMO (Prime Minister's Office)," he said. 'Zen-Kaizen' at the AMA seeks to showcase several elements of Japanese art, culture, landscape and architecture. It is a joint endeavour of the Japan Information and Study Centre at AMA and the Indo-Japan Friendship Association (IJFA), Gujarat, supported by the Hyogo International Association (HIA), Japan, a release earlier said. Modi said this occasion of the launch of the Zen garden and Kaizen Academy is a "symbol of the spontaneity and modernity of India-Japan relations". The PM said he is confident that this will further strengthen the relationship between India and Japan, bringing citizens of the two countries closer. "I would like the Kaizen Academy to spread the work culture of Japan in India, and increase business interaction between the two countries. We also have to give new energy to the efforts already going on in this direction. I am sure our efforts will continue like this, and India and Japan will together reach new heights of development," he said. Talking about former Japanese prime minister Shinzo Abe, Modi said relations between the two countries gained a new impetus when Abe had visited Gujarat. He was very excited when the work of the (Mumbai-Ahmedabad) bullet train project started, the PM said. "Even today, when I talk to him, he remembers his Gujarat tour," he said. Modi also said India and Japan have been devoted to external progress and prosperity, as much as the importance given to internal peace and progress by the two countries. He said the Japanese Zen garden is "a beautiful expression of this quest for peace, this simplicity." Modi said the peace, ease and simplicity that the people of India have learnt through yoga and spirituality for centuries, they will see a glimpse of the same here. "What is 'Zen' in Japan is 'dhyan' (meditation) in India," he said.
Source: Millennium Post
Response to RBI’s liquidity stimulus has not been encouraging so far. It’s time for banks and private sector to push investments India is 16 months into the Covid-19 pandemic. In this period, we have seen a colossal loss of human lives coupled with a huge contraction in output. The rate of real economic growth measured in terms of GDP at constant market prices (base year 2012) has revived in 2020-21 and entered into a positive territory in Q3 (0.4 per cent) and Q4 (1.6 per cent). The second wave of Covid turned virulent, pointing to the urgent need to speed-up and scale-up vaccination to save lives and to support the recovery process. The OECD Economic Outlook (May 2021) for India has observed that the chronic underinvestment in public health infrastructure makes the situation calamitous. The retail headline official inflation, however, measured in terms of consumer price index-combined (CPI-C) was 6.3 per cent in May 2021, thus crossing the upper band of the mandated inflation target of 6 per cent. This was primarily on account of fuel inflation which swelled to double digits (11.6 per cent). The core inflation (headline inflation minus food and fuel), which measures the persistence of inflation, was 6.6 per cent, the highest since May 2014, as per RBI estimates. Data released by the Centre for Monitoring Indian Economy (CMIE) reveal that in May 2021, the unemployment rate was 11.9 per cent, which is higher than unemployment figures of around 8 per cent in April 2021. The number is also higher than that seen during the period June 2020 through March 2021, which was in the range of 6.5 per cent (for March 2021) and around 10.2 per cent (for June 2020). These are worrying trends. We have seen unprecedented fiscal and monetary policy stimulus with the intention of reviving the economy. Fiscal stimulus was reflected in massive fiscal deficit and government debt relative to GDP. For instance, general government (Centre plus States) deficit is estimated at around 10.8 per cent of GDP in 2021-22 on the top of 14.3 per cent of GDP recorded in the previous year. As a result, the debt-to-GDP ratio crossed 90 per cent against the mandated level of 60 per cent for the general government. These figures are the highest levels since the institution of the Fiscal Responsibility and Budget Management (FRBM) Act 2003. At this level of deficit and debt, there is hardly any space available for further fiscal stimulus with counter-cyclical deficit and debt though there has been a persistent clamour from many quarters, particularly from industry captains, for enhanced fiscal sops. If the fiscal policy is pushed further for more stimuli with higher borrowings, it will lead to higher debt levels, resulting in higher interest rates.
Crowding out investment
Higher interest rates will result in crowding-out of private sector investments as interest rates becomes higher for the private sector. Alternatively, if the government takes recourse to money finance by printing money, an option offered by some, the potential inflation threat will loom large. Already, inflation (both headline and core) as alluded to earlier, has been at a higher level. Any further increase in the inflation rate will be a threat to input cost and will jeopardise recovery. Given the inadequate fiscal space, the contraction in economic activity due to the pandemic was addressed by front-loading the monetary policy with an accommodative stance and maintaining status quo in the policy repo rate. The monetary accommodation announced by the RBI during the period February 6, 2020 to March 31, 2021, was to the tune of ₹13,61,200 crore or 6.9 per cent GDP. However, it is pertinent to mention that as per the RBI State of Economy review in the June Bulletin, the liquidity availed of was much lower, at ₹8,91361 crore or 4.5 per cent of GDP. Similarly, the monetary accommodation announced during fiscal 2021-22 so far (up to June 7) aggregated ₹3, 61,000 crore or 1.8 per cent of GDP. However, the amount availed has been much lower at ₹98,355 crore or 0.5 per cent of GDP. In this context, it is of interest to note that the monetary policy accommodation has not been very encouraging except for net OMO purchases which imply purchasing government securities by the banks from the RBI in the open market. For example, as against the announcement of ₹1,50,000 crore, the net OMO purchase was ₹3,56,265 crore. The market appetite for most of the unconventional monetary policy instruments such as Long Term Repo Operation (LTRO), Targeted Long Term Repo Operation (TLTRO) and the much acclaimed G-SAP has not been very reassuring. For example, up to June 4, as against the announced amount of ₹2 lakh crore for G-SAP (including regular OMO), the availed amount was only ₹97, 955 crore. This development, seen in conjunction with the transmission of monetary policy, reveal that the reduction in the weighted average lending rate (WALR) is far lower than the policy repo rate (PRR) reduction. For example, the PRR was reduced by 250 basis points (bps) during the period February 2019 to May 2021 but the corresponding reduction in WALR was only 187 basis points (bps). Furthermore, the non-food credit offtake has also been slower in the case of most of industries. On the financial year basis so far (April 2021), the growth rate of credit offtake by all industries has been - 0.8 per cent and services -1.5 per cent. Industry-wise break-up of credit off-take revealed that during the same period, infrastructure has been 0 per cent, textiles -0.9 per cent, all engineering 0.2 per cent and construction 2 per cent. Given the lower availment of monetary accommodation and slower transmission of monetary policy from the reduction of policy repo rate to bank lending rate, coupled with the lack of appetitive for credit off-take, it is important to mention that the monetary stimulus provided by the RBI has not been encouraging. There is an urgent need for a proactive role by banks and the private corporate sector to be partners in the growth process. In this context, banks should facilitate monetary policy transmission and also credit off-take. Private sector as a partner has a much greater role and responsibility to move the economy to a higher growth trajectory. The government has already provided a substantial amount aggregating ₹14,40,730 crore under three Atma Nirbhar Bharat Abhiyan schemes announced by the Central government. This amount needs to be channelled and spent efficiently and effectively. Here the private sector has an important role to play. It is well-recognised that at a global level that the Covid-19 pandemic is a once-in-a-lifetime crisis and the global recovery, though nascent, is “no ordinary recovery” (in the words of the OECD). In India, all the stakeholders, the RBI, government, banks and above all the private sector will have to play a proactive role in pushing growth. In this context, it is appropriate to quote the RBI’s review of the state of the economy, “A virtuous combination of public and private investment can ignite a shift towards investment and thereby a trajectory of sustained growth.” But of course, that is easier said than done.
Source: The Hindu Businessline
A large number of foreign and domestic investors and other business entities, who have either invested in various e-commerce platforms or are doing business with them, are also said to be wary of certain proposed rules, including on 'fall-back liability', flash sales, or deep discounting and data sharing. Some states, mostly those ruled by non-BJP parties, are apprehensive about the new set of e-commerce rules proposed by the Union Consumer Affairs Ministry to check misselling and fraudulent discounts, as they fear there could be a negative impact on jobs and market access for MSMEs created by various digital platforms in recent years. These state governments plan to suggest strong safeguard measures in the proposed rules to ensure that any changes in the Consumer Protection (E-Commerce) Rules, 2020 do not hamper their economic growth NSE -1.15 % and revenue collections, officials from those states said. However, it would be kept in mind that their suggestions do not come in way of the proposed rules enhancing the overall consumer protection framework, they asserted. Declining to be identified, these officials said it is a sensitive matter that needs to be tackled carefully as protecting consumers' interest is as important as safeguarding jobs, MSMEs and lakhs of self-employed individuals including artisans, weavers and those in agriculture and allied sectors who have been benefiting immensely from the growth of the e-commerce sector. The officials said formal suggestions on the draft rules would be made to the Centre, which has invited suggestions till July 6, would be made after deliberating all the issues and after consulting all stakeholders. A large number of foreign and domestic investors and other business entities, who have either invested in various ecommerce platforms or are doing business with them, are also said to be wary of certain proposed rules, including on 'fall-back liability', flash sales, or deep discounting and data sharing. Their apprehensions include greater liabilities for online retailers for goods and services sold on their platforms, which could also impact the ability of e-commerce players to raise funds going forward and may prompt existing and prospective investors to put in place additional measures to safeguard their returns. Major e-commerce players such as Amazon and Walmart/Flipkart, as also some industry bodies, are also likely to submit their views on these proposals soon. A senior official of a big non-BJP-ruled state said there is a view that the proposed rules can disturb the state's business ecosystem, especially with regard to MSMEs and small entrepreneurs and will also limit the choices for consumers, rather than safeguarding their interest. He pointed out that MSMEs contribute almost two-thirds of the annual revenues generated on just two major platforms - - Amazon and Flipkart -- and that itself runs into thousands of crores of rupees, while there is a big chain involved comprising of businesses, self-employed individuals, warehouses, farmers etc and these platforms have created lakhs of jobs in the recent years. Among various measures, the draft amendments propose banning of fraudulent flash sales and mis-selling of goods and services on ecommerce platforms. Ban on misleading users by manipulating search results, and appointment of chief compliance officer and resident grievance officer are some of the other amendments being proposed. E-commerce entities are also required to provide information not later than 72 hours of the receipt of an order from a government agency for prevention, detection and investigation and prosecution of offences under any law, as per the proposed amendments. The Consumer Protection (E-Commerce) Rules, 2020 were first notified in July last year. Their violations attract penal action under the Consumer Protection Act, 2019. The government said that following the notification of the e-commerce rules, it has received several representations from aggrieved consumers, traders and associations "complaining against widespread cheating and unfair trade practices being observed in the e-commerce ecosystem." Among the key amendments, the government has proposed a ban on mis-selling of goods and services offered on such platforms. Those engaging in 'cross-selling' will have to provide adequate disclosures to users displayed prominently. The government also seeks to ban 'flash sales' on e-commerce platforms "if such sales are organised by fraudulently intercepting the ordinary course of business using technological means with an intent to enable only a specified seller or group of sellers managed by such entity to sell goods or services on the platform." However, the ministry clarified, "Conventional e-commerce flash sales are not banned. Only specific flash sales or backto-back sales which limit customer choice, increase prices and prevent a level playing field are not allowed." "... Certain e-commerce entities are engaging in limiting consumer choice by indulging in 'back to back' or 'flash' sales wherein one seller selling on a platform does not carry any inventory or order fulfillment capability but merely places a 'flash or back-to-back' order with another seller controlled by platform," it said. Such sales will not be allowed as this prevents a level playing field and ultimately limits customer choice and increases prices, the ministry added. The proposed amendment defines 'flash sale' as that organised by an e-commerce entity at significantly reduced prices, high discounts or any other such promotional offers for a predetermined period of time. The government has also proposed 'fall-back liability' for every marketplace e-commerce entity to ensure that consumers are not adversely affected in the event where a seller fails to deliver goods or services due to negligent conduct by such seller.
Source: Economic Times
Gautam Hari Singhania, Chairman and Managing Director of Raymond Group, says companies shouldn't lose sight of the bigger picture while coping with the pandemic. Over two decades, Gautam Hari Singhania has steered the Raymond Group into new categories like FMCG, auto components, and engineering, whilst deepening its core textiles and apparels business. A year before the pandemic, the company launched Raymond Realty to foray into the real estate sector. In this interview with YourStory Media Founder Shradha Sharma, Singhania reflects on the challenging year that the group has faced. Enterprise Story: In the grim backdrop of the COVID-19 pandemic, what would you tell young entrepreneurs and businesspeople in the country? Gautam Singhania: We are specifically talking in light of the pandemic and what's going on. These are tough times. These are very, very tough times. And there are a few takeaways from this. You've gotto really reengineer business and look at it with a microscope, look at it very hard and say this is the way I can change my business because the survival instinct has to come into play. The second most important thing is: have faith that this will pass. Whether it's in sport, business or life, don't lose hope. Because a positive attitude is the only thing that'll take you through. So, these are the times that we are in—relook at what you're doing. Stay focused. And remember that famous saying: this too shall pass. When the pandemic began to spread in India last year, you told shareholders: “It is posing serious existential questions that needs thorough introspection, logical recalibration and prudent decisions.” What are the demands that the pandemic thrust on the Raymond Group? Raymond is a 97-year-old group. If you go back to April and May last year, we had very little data. We didn't even know what could actually be a cure to the pandemic or the disease, much less have a vaccination. And we were looking at a very long pause. But as I had said that time—and I continue to believe the same—that as soon as the pandemic is over or things start opening up, you will see a bounce-back. If you go back to my interviews last April and May, I said the minute it opens up, you'll find people taking a flight and going to Goa. So what if they can’t go to London? A person needs a break. He needs a break. It could be in Goa and he might not go to London. That's exactly what happened. If you see tourist places or safari parks, it was all chock-ablock. It's unfortunate that the second wave has come, and we're seeing a temporary blip. My view is that between the first of June and the 15th of June, most of India should open up. So, there is an optimism and I also believe that the bounce-back will be strong. We're cautiously optimistic, but I think we will come back. One of the immediate measures the Raymond Group took was to make personal protective equipment (PPE) products and even personal hygiene products. What do you remember about the agility with which your company responded to the crisis? When everything was closed, we looked at the need of the hour. We had our garmenting facilities, and PPE (personal protective equipment) masks were the need of the hour. And we made that. We also have an FMCG company with the ability to make hand-sanitisers, floor cleaners and so on. So, we quickly adapted to that. Today’s world is all about that: how quickly you can adapt and move forward. How did you pull off the cost reduction target of 33 percent? It is just a mindset. If you have to survive, there's a survival instinct that kicks in. You then got to do what you've got to do. There were very hard and very painful decisions that had to be taken. If you’re in the Arctic with only one bottle of water, which is exactly your cash flow for one month. You know you've got only one bottle of water. You've got to figure out how to melt the ice (and) what you're going to do. You've got to figure it out. The Raymond Group has invested in omni-channel shopping or ‘phygital’. Post pandemic, is the group looking at going the Direct To Consumer (D2C) way? We’ll continue to be in omni-channel. And as far as we are concerned, our product category is such that there's a lot of touch and feel to it. People want to touch the fabric, feel the fabric, drape the fabric, come with their family member. Typically, we have three people coming as a group to buy a fabric because the Indian consumer still needs a reassurance from his wife, daughter or son. How does it look on him? He lacks the confidence to buy the product on the internet. It's unlike buying a soap or deodorant on the Internet, where you know which brand you use. That's a commodity. Number two, in our business, shopping is an experience. Going to a Raymond shop is an experience. Going there with your wife. It's an outing. So all in all, I'm very optimistic that the shopping that we see per se will continue. What are some of the innovations you think that the company has done, which has kept it agile? Across businesses, it eventually comes down to the word ‘trust’. Trust comes from quality and excellence. That's what the brand stands for, and (it) is about product development. You stay on the forefront if you get the right product at the right value in the lifestyle and fabric space, which we are doing. If you see today in our real estate space, which we entered 18 to 24 months ago, our project is doing exceedingly well. It’s probably the number one project in Thane, because eventually it’s the right product, right place, right price, right location. And that's what it's all about. And we've actually gone out of our way to design a top class product. And eventually, it's a top-class product that sells. It's also about staying true to the basics of what people want. We are the only brand in the world that goes through 6,000 times in price point under the same brand. We go from Rs 150 a metre to Rs 10 lakh a metre under the same brand. Like we say, from the taxi driver to Mr Tata, everybody buys us and there's no other brand in the world that will instil that kind of confidence across such a socioeconomic strata of people. Toyota launches Lexus. There’s Four Seasons and Ritz. So, no brand actually runs through such a large group of people. That's really the power of the brand. In that context, tell me how do you build an iconic brand? The core of the brand is delivering quality consistently. You have to deliver. Like I always said, putting a brand on the map is like throwing a dart on the wall and seeing where it hits. A brand actually gets established over a very long period of time. So if launch a brand, it could take between two and three years for somebody to try your brand. Then, the customer experiences it, then a repeat purchase, and recommends it to somebody. This process could be at least 10 years. It's very rare that you will get a brand that becomes a brand overnight. I've seen a brand that came out with phenomenal advertising. I thought it was a superlooking brand, but they failed on the supply chain. And two weeks later, it was over. So, an iconic brand is normally built over a long period of time—Raymond has been here for 97 years. It’s seen the ups and it’s seen the downs. That’s what really makes it a brand. When you look back at how you have consolidated and grown the Raymond Group, what are some of the things you have done right as a leader that has worked? The single most important philosophy is to do the right thing. The right thing is never the easiest thing, but you have to do the right thing and be committed to what you believe in. If you've committed to what you believe in and you do the right things, sometimes it's the harder route, but eventually you get there. How do you look at overall stakeholder engagement and management? It's a normal challenge. This week alone, I would have reached out to over 5,000 people in my trade. And it's really communicating with them, telling them what you're doing. Sometimes, there is miscommunication as to why the company is doing something. So this week alone, I would have reached out to more than 5,000 people in the trade. I've been to 10 cities myself in the last one month and met customers, explained to them what we're doing, and why we are doing it. Eventually, it's a partnership between your trade and yourself, your stakeholders and yourself. And they must believe in what you're doing. A brand is more than its product. A management guru once said 60 percent of the reasons people buy your product is the brand; 40 percent are other reasons, like what the brand is, ease of availability, trust in the company, etc. What are some of the challenges you have faced as a business leader, and how did you face those things? The biggest challenge everybody is in is the lockdown. And I’ll give you an anecdote. I was in a Zoom call with some people. There was a guy from China who said, “Hey man, I love this lockdown. I love this work from home. I can do it for the rest of my life.” When it was my turn to speak, I said, “You know, I can't wait for the lockdown to get over and get back to living life because life is more than looking at an iPad screen and having a conversation with 10 people around the world.” Yes, you can do different things. You can connect with different people, which you could never do before. But life is about experiences. I mean, if you don't go out and experience life, what do you talk about? I gave a talk about six months ago, and I was so deprived from my experiences of the previous three months. I found it very difficult to talk to people about anything because I said I've just been looking at a screen and been in my office and worked from home. The challenges of work from home are different. I think we need to get the engines of the economy started, and actually get out there and do things. When we do things, life will be back to normal. What anchors you? Everybody feels the challenge today. It is just about staying positive. I’ll give you an example. I speak to a lot of my friends and what are they doing at 7 o'clock? They open the bottle, and having a drink because there's nothing else to do. And one thing I've done is I've completely gone off drinks. This is not the time to drink and make merry. This is the time to stay focused because alcohol actually makes you happy in the short term and then depresses you in the long term. It doesn't let you focus. And the one thing I need today to bring to the job every morning is focus. So, maybe on a Saturday night, I'll have a couple of glasses of wine, but everybody need to relax. But I've gone the other way. Currently, stay focused, stay positive. That's the most important thing. What do you thing we need to do as a country from here? First and the most important thing is: vaccinate, vaccinate, vaccinate! The faster you vaccinate, the faster our dreams will get fulfilled. You just have to vaccinate, vaccinate and vaccinate. If you look at a basic number, We have 1.3 billion people. You need 2.6 billion vaccines. Even if it's ten dollars a vaccine, that is $26 billion. But for $26 billion, if you vaccinate, you open up a $3.5 trillion economy. Look at the numbers. It's a no-brainer. Some of the countries have got it so right that they are back to business as usual. Look at Dubai today. It's opening up again. It’s totally opened up and it's billions and billions and billions of dollars of tourism. Look at the US. They're back to normal and it's a $20 trillion dollar economy. What is the cost of vaccines to keep that engine going?.
Source: Your Story
With a ban on exhibitions and with markets closed for long periods, their sales have dipped. The traders are not making fresh purchases as they are already burdened with unsold stocks Around 20,000 artisans in Chanderi, Bagh and Maheshwar towns in the state are in dire straits. The two waves of the corona pandemic have chomped through their earnings.
Bhopal (Madhya Pradesh):
Around 20,000 artisans in Chanderi, Bagh and Maheshwar towns in the state are in dire straits. The two waves of the corona pandemic have chomped through their earnings. With a ban on exhibitions and with markets closed for long periods, their sales have dipped. The traders are not making fresh purchases for they are already burdened with unsold stocks. The government, too, has not extended any help to them. “When our supreme leader is asking us to become Atmanirbhar, how can we expect any help?” asks Allauddin Ansari, a master craftsman from Maheshwar. ‘Worker pool is drying out’ According to Vijay Koli, a Chanderi master craftsman, the municipal town is home to around 25,000 families, of which 12,000 are associated with the production of Chanderi apparel. Koli, who used to employ around 50 workers, now has just 15 left. While the demand has dipped to 5 per cent, the cost of raw materials has skyrocketed. The price of silk thread used in making Chanderi sarees has increased from Rs 3,500 to Rs 6,000 per kg. “The government has simply forgotten about us. Let alone helping us, the government agencies have stopped buying our stocks,” he says.
Hike in cotton fabric price
Umar Faruk Khatri, a Bagh master craftsman, says the pandemic has reduced their business by 60-80 per cent. He used to organise exclusive exhibitions of his products every year at Gauhar Mahal in Bhopal. But they have not been held for two years now. He says some of his workers have migrated to Rajasthan and Gujarat in search of work. “We’ve been able to sell a very small part of our production online. The rest is lying in the godowns,” he says. He also complains of a hike in raw material prices. “Cotton fabric now costs Rs 50 per metre, up from Rs 20 per metre before Covid-19 struck,” he says.
Cloth locked in godown
Another Bagh master craftsman, Mohammed Bilal Khatri, says he, alone, has lost business worth Rs 20 lakh. He used to sell his products at exhibitions in foreign countries, as well as in major cities in the country. But all that has now stopped. “I’ve taken a cash credit (CC) limit of Rs 25 lakh and I’m paying some amount to my workers so they can survive,” he says. Around 10,000 metres of cloth and 1,000 suits are locked in his godown. “Yes, shops have reopened, but where are the buyers?” he asks. Around 2,000 artisans in Bagh are dependent on this work for their livelihood. All the artisans say that, in their times of distress, neither the Mignayanee chain of government-owned emporiums, nor the Laghu Udyog Nigam is coming forward to buy their products.
‘On the verge of starvation’
According to Ansari, Maheshwari products worth Rs 10 crore are lying unsold in the town. “What’s Rs 10 crore for the government? We only want them to buy our goods and make payments at the earliest possible opportunity,” he says. “But now, the workers are on the verge of starvation,” he says. Around 5,000 artisans in Maheshwar are associated with this work here. Most of them are doing odd jobs, such as selling vegetables and working as labourers due to the pandemic, says Ansari. The artisans say that the government should lift the ban on exhibitions and do something to help the artisans. “They’re talented, self-respecting and hardworking people. They deserve help,” says Koli. Nationally known centres Chanderi in Ashoknagar, Bagh in Dhar and Maheshwar in Khargone district are nationally known centres of production of traditional handloom textiles.
Source: Free Press Journal
Form committee for due diligence in wake of gas crises Perturbed from gas load-shedding, textile exporters have threatened to move their industries to other countries. In a statement issued on Saturday, Pakistan Apparel Forum (PAF) Chairman Jawed Bilwani said that textile exporters have formed a committee for due diligence to shift industries in the wake of gas crises and unviable business environment. During a meeting of prominent textile exporters of Pakistan, it was mentioned that since last 15 days (from June 11 2021) there was zero gas pressure, which has crippled industries and halted export production. “During fiscal year 2020-21, some 99 days out of 320 working days, gas pressure was zero or low,” he added. Furthermore, textile exporters having RLNG connections and paying the amounts with great difficulty, to meet export orders at a rate of Rs1,533 per mmbtu, are not provided gas. The exporters questioned how industries would work without the basic raw material. They voiced concerns that there is no chance that the textile export industries will get the required gas smoothly with adequate pressure in future. Textile industry is one of the leading export industries of Pakistan, said a textile sector research analyst. Exports clocked-in at $13.8 billion in the first 11 months of the outgoing fiscal year 2020-21 alone. “This is more than twice the International Monetary Fund (IMF) facility of $6 billion,” the analyst said, adding that depriving the industry of gas will hurt exports of the country. Similarly, non-export industries are also not getting gas as per their requirement. These industries also play a vital role in the manufacturing of value-added products for export industries, and also produce products for meeting local demand, said North Karachi Association of Trade and Industry (NKATI) President Faisal Moiz Khan. “Therefore, non-export industries are as important as export industries and they should be ignored,” he maintained. Bilwani added that amid the continuous gas crisis in the country, especially in Karachi, and given contradictory moves by the government towards its business policies by depriving the exporters of a level-playing field and viable business environment, the textile exporters have constituted a committee for due diligence to shift textile export industries elsewhere, on the exporters demand, to correspond and negotiate with those countries which have much better business and export-friendly policies and are offering most attractive incentives to their foreign investors as well as their local industries. Khan urged Prime Minister Imran Khan to restore Karachi’s industries and save them from destruction so that production activities can resume as usual and workers can be saved from becoming unemployed.
Source: Tribune
The government needs to undertake a massive development program for the export industry in preparation for the implementation of the Regional Comprehensive Economic Partnership (RCEP) so the country does not lose out to competitors. Foreign Buyers Association of the Philippines president Robert Young, who also serves as Philippine Exporters Confederation Inc. trustee for the textile sector, said in an email the government, with the private sector, should draw up an action plan to develop the industry as the country is not ready to compete and take advantage of opportunities the RCEP would open for members. “We have to do a massive program for the development of the export industry whether it is mango, whether garments, whether hard goods, handicraft or car parts…In my mind, I always compare it to joining a basketball tournament and you are not ready with your players,” he said. Signed by the Association of Southeast Asian Nations (ASEAN) members such as the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam, and trade partners Australia, China, Japan, South Korea, and New Zealand in November last year, the RCEP is the world’s largest free trade deal accounting for about 30 percent of the global gross domestic product and population. The deal goes beyond trade in goods, services, investment, economic and technical cooperation, as it also covers electronic commerce, intellectual property, government procurement and competition. The RCEP is being promoted by the Department of Trade and Industry (DTI) as a deal that would benefit the country through improved market access for auto parts, electronics, aerospace, chemicals, construction, garments, furniture, agriculture products, and information technology - business process management. For the garments sector, Young said it would be hard to compete as the country’s exports are costlier than those produced by competitors, with local manufacturers having to procure textiles overseas. “How can we compete when they are actually our competitors? How can we sell them jeans which are actually $2 more than what they price?” he said. The DTI also sees the RCEP as a deal that would help the country attract investments from non-member countries looking to set up manufacturing operations to sell products to RCEP members. Young said compared to our ASEAN neighbors however, the country is not competitive given higher labor, electricity and power costs. To prepare the export industry, he said the action plan should identify steps and priority tasks with deadlines, identified resources, complete with monitoring and evaluation. He also suggested the grant of subsidies to address the high cost of doing business. He said a massive information drive regarding the trade deal should be undertaken, as well as training programs to address skills gaps and workshops on the latest modern machinery, state of the art equipment, production processes and on the latest trends on technical materials. RCEP would enter into effect 60 days after being ratified by at least six ASEAN countries and three non-ASEAN members. Countries that have deposited their instruments for the ratification of the RCEP to the ASEAN Secretariat are Singapore, China and Japan. Trade assistant secretary Allan Gepty earlier said the Philippines aims to complete the ratification process for the RCEP within the year.
Source: Philstar
The government is considering a target of $43 billion for the country’s merchandising export with 11 per cent year-on-year growth for the upcoming financial year 2021-22. Although the export earnings target drafted by the commerce ministry is $2 billion higher than the target of $41 billion for FY21, the amount is $2.5 billion lower than the target for FY20. According to sources, the Export Promotion Bureau sent a draft to the commerce ministry proposing a $43-billion export earnings target for goods for FY22. The export earnings target for readymade garment products is likely to be set at $34 billion with a 10-per cent growth from the performance in FY21, sources said. The commerce ministry on June 22 held a stakeholder consultation to fix the export earnings targets for FY22. The ministry officials said that they had prepared a primary draft of the export target for the next fiscal and it might be announced in the first week of July. They said that the proposed target had been set considering the ongoing Covid situation and the trend of the global economy. According to sources, the Export Promotion Bureau sent a draft to the commerce ministry proposing a $43-billion export earnings target for goods for FY22. The export earnings target for readymade garment products is likely to be set at $34 billion with a 10-per cent growth from the performance in FY21, sources said. The commerce ministry on June 22 held a stakeholder consultation to fix the export earnings targets for FY22. The ministry officials said that they had prepared a primary draft of the export target for the next fiscal and it might be announced in the first week of July. They said that the proposed target had been set considering the ongoing Covid situation and the trend of the global economy. Bangladesh Knitwear Manufacturers and Exporters Association director Fazle Ehsan Shamim said that they proposed 15 per cent growth from knitwear export in the next fiscal as demand for the item had started to increase in Europe. He said that the economies of Europe and the United States had started to recover and the export orders would increase in the coming months. The government had set the export earnings target for goods at $41 billion with a 21.76- per cent growth for the financial year 2020-21 after the dismal performance of exports due to the coronavirus outbreak in FY2019-20. Against the target, export earnings in July-May of FY21 stood at $35.18 billion with 13.64 per cent growth. The commerce ministry estimated that export earnings in the financial year would stand at $38.39 billion with a 14.04-per cent growth.
Source: New Age
