The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 26 JULY, 2021

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INTERNATIONAL

July exports poised to hit $33 bn: Piyush Goyal

Commerce minister says many labour-intensive sectors showing good traction, more reforms coming July’s exports are likely to reach about $33 billion, keeping India on track to cross the $400 billion mark in outbound trade for the first time this year, Commerce and Industry Minister Piyush Goyal said on Saturday. Foreign direct investment (FDI) inflows were also expected to hit a fresh record in 2021-22, he added. Dismissing investor concerns about land acquisition and labour laws, the minister asserted that land, labour and capital were no longer a hindrance for investing in India, and a lot more reforms were in the pipeline at the Central government level as well as in States administered by the Bharatiya Janata Party. “Despite the COVID-19 pandemic, our FDI inflows were the highest ever last year when other countries saw investments falling. This year, we are confident of continuing the seven-year streak of new record highs in FDI,” Mr. Goyal said. “Exports are looking up and we had a record $95 billion of exports in the first quarter. This has energised us to set a target of $400 billion for 2021-22 and I am confident we can achieve that. Even in July, till July 21, exports are above $22 billion and well poised to cross $32-33 billion by the end of the month,” he said at a CII-Horasis India meeting. The government said exports had risen 45% to hit $22.48 billion by the third week of July, 25.4% higher than the pre-COVID level. Engineering goods exports were up 33.7% so far in July, 51.2% above July 2019 levels. “We are now in the top-10 list of agri-produce exporters... and many sectors which are labour-intensive are showing good traction,” Mr. Goyal, who also handles the Textiles, Consumer Affairs, Food and Public Distribution ministries, said.

Land, labour ‘old issues’

 Responding to queries about pending reforms in land acquisition and labour laws, Mr. Goyal said: “Sometimes, we often just go about the same complaint about an issue which may not necessarily be so on the ground. I have been a minister for seven years and am yet to meet an industrialist who came to me and said they are not investing in India because of labour laws. The Centre had identified lakhs of acres of land for investors to tap, but some business in a particular area may have faced resistance because of political motivations or inability to market the project. “Today, land, labour and capital — with so many venture capitalists and other private investors, banks much stronger than ever before, having cleaned up most of their balancesheets — are issues which were discussed 10 or five years ago. Today, if anybody has a problem, I am always there and my doors are open,” he said. On concerns about government agencies harassing businesses, the minister said: “Agencies are not troubling, it’s the legacy issues which are troubling. Unfortunately, some actions of the past are causing the stress. Our effort is to move the nation to a honest and very transparent way of working — nobody in the future should have to go through the kind of business environment that some of us suffered from in the past”; Taking note of 30 years of the Indian economy’s liberalisation, Mr. Goyal said he had met Manmohan Singh, ‘the architect of the original reform package’ a couple of weeks ago and lauded late Prime Minister P.V. Narasimha Rao who had allowed his Finance Minister to carry out the reforms. “Of course, at that time, reform was forced upon us. We had no choice but to open up given the precarious position of the economy. PM Narendra Modi, over the last seven years, has consistently been working to bring about structural changes not out of any compulsion, but from a deep conviction that India’s time has come,” he asserted. “I am not being astrological but I really believe that the world’s destiny is going to be shaped by a lot of the decisions that all of you and we take in India. India is going be the pole around which the world economy will need to grow and expand,” he concluded.

Source: The Hindu

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Clear signs of economic revival amid Covid-19 disruptions, says Piyush Goyal

Union minister Piyush Goyal said the highest-ever FDI in pandemic-hit 2020 which is in stark contrast to a fall in investment flows globally. Union minister of commerce and industry Piyush Goyal has said there are clear indications the economy is seeing a revival amid the disruptions caused by coronavirus (Covid-19) disease and the country will receive high foreign direct investments (FDIs) during the current financial year. Goyal, who virtually addressed the plenary session of Confederation of Indian Industry (CII) and Horasis India on Saturday, said, India received the highest-ever FDI in the pandemic-hit 2020 which is in stark contrast to a fall in investment inflows globally. "The Indian industry is indeed on a growth path. The highest-ever merchandise has been logged for exports in a quarter (Q1 2021-22, $95 billion) in the history of India (more than 18 per cent from Q1 of 2019-20). In July (till the third week), exports were at $22.48 billion, at an increase of 45.13 per cent with respect to the same period in 20-21, and more than 25.42 per cent with respect to 2019-20.” He added the labour intensive and employment generating sector of engineering goods has also seen a growth of 33.70 per cent in the third week of July with respect to 20-21. "India has broken into the top 10 list of agricultural produce exporters as per WTO report. The Indian growth story is now being reflected across all the sectors from the ease of doing business to exports and from startups to services, India is taking giant leaps in each sector," he said. Speaking about the startup space, Goyal said, "In just the first six months of 2021, another 15 unicorns have come up." He said India further is holding talks with 16 countries, including the UK, the EU, Australia, Canada, and the UAE, for trade agreements. The Union minister said the accomplishments were a result of consistent efforts to bring structural changes in the last seven years, adding growth-centric reforms have enabled India to embark on a holistic economic transformation. Stating that “Aatmanirbhar Bharat” is the recipe for rebuilding, revitalising and building resilience in the economy, Goyal said the campaign does not mean “closing our doors to the world. On the contrary, it empowers us to engage with greater confidence and competitiveness". He also exhorted all stakeholders of India's economic progress to look for emerging shortterm and long-term growth opportunities. "Vaccines, pharma products, ICT-related goods and services are possible areas of opportunities for immediate and short terms. In the long term, areas like digitisation, clean energy and GVCs remain great areas of growth. Sectors like agriculture, textiles, engineering goods, electronics, marine products and shipping services also offer great opportunities," he added.

Source: Hindustan Times

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"There is a new energy in our startups space. In just first 6 months of 2021, India has seen 15 more unicorns" - Shri Piyush Goyal

"There is a new energy in our startups space. In just first 6 months of 2021, India has been to see 15 more unicorns" This was said by Shri Piyush Goyal while addressing the Plenary Session of CII- Horasis India Meeting 2021 on India’s Emerging Industry & Trade Architecture”. He stated that Indian startups are more than commercial success stories and they are key to India’s transformation. Shri Goyal implored all to make ‘Startup India’ a symbol of "National Participation & National Consciousness" He said that despite COVID-19 disruptions, there are clear indications of economic revival in India. Exports are going up and FDI inflows are highest. Indian industry is indeed on a growth path . The Minister said that highest ever merchandise have been logged for exports in a quarter (Q1 2021-22, $ 95 bn) in history of India (+18% than Q1 of 2019-20) . He added that in July (till 3rd week), exports $ 22.48 bn, +45.13% w.r.t. same period in 20-21, +25.42% w.r.t. 2019-20. He further added that labour intensive and employment generating sector of Engineering goods has also registered growth of +33.70% in 3rd week of july w.r.t 20-21 & +51.2% w.r.t. same period in 2019-20. Shri Goyal said that India has broken into the top 10 list of Agri produce exporters (as per WTO report) . It may be noted that with a positive momentum, India is working in mission mode to achieve target of $400 bn merchandise exports in 2021-22. Shri Goyal said that Indian growth story is now being reflected across all the sectors from EoDB to Exports and from Startups to Services, India is taking giant leaps in each sector. Addressing the plenary session, the Minister said that today, India is the preferred destination for Industry, Investment & Innovation. This situation has arisen as a result of consistent efforts to bring structural changes in last 7 years. Some of these key changes include large scale Digitisation, Modernisation, Simplification & Facilitation. Shri Piyush Goyal added that growth centric reforms has enabled India to embark on a holistic economic transformation and as a result, India is growing with SPEED - Stability, Productivity, Enterprise, Entrepreneurship & Demand. The Minister said that under PM, India has set itself upon the path to become “Aatmanirbhar Bharat” i.e. self-reliant & self-sufficient. Aatmanirbharta is the recipe for Rebuilding, Revitalising & building Resilience in the economy. Shri Goyal noted that ‘Self Reliant India’ does not mean closing our doors to the world, on the contrary, it empowers us to engage with greater confidence & competitiveness. Shri Goyal implored that Indian Industry must rest on strong foundations of Quality, Productivity & Economies of Scale. He said that under PM, India decided to revolutionise its manufacturing sector by bringing the PLI Scheme - to produce national manufacturing champions in each sector. It may be noted that Centre has announced the PLI Schemes worth $26 bn covering 13 sectors in the 5 years. PLI scheme will transform India into a Powerhouse of Leading Industries in post COVID world. Shri Goyal said that by focusing on our competitive & comparative advantage, to be a larger stakeholder in GVCs, India has become a trusted global business partner. The Minister said that India endorses the concept of working towards ensuring a transparent, dependable & reliable supply chain and there is natural inclination among countries to partner with India. He said that India was expediting FTAs with major world economies. Shri Piyush Goyal said that reciprocity & fairness is our mantra in negotiations by taking trade facilitation measures, today, India is changing Non-Tariff Barriers to No Trade Barriers and Indian trade is shifting from “Goods only” to “Goods, Services & Investments” along with job creation. Speaking about the progress and opportunities in Textile sector, the Minister said that India’s textile sector is one of the largest employers in India and is now poised to become the largest exporter as well. Shri Goyal said that all stake holders of India's economic progress and participants in the session, should look for emerging short term and long-term growth opportunities. Vaccines, pharma products, ICT-related goods & services etc are good possible areas of opportunities for immediate & short-term need exist. In long-term, areas like digitisation, clean energy & GVCs remain great areas of growth. Sectors like Agri, Textiles, Engineering goods, Electronics, Marine products, Shipping services etc also offer great opportunities for the nation. The Minister added that Government of India is standing strong with a resolve for "Building a strong India of Tomorrow".

Source: PIB

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FS Shringla meets British counterpart, reviews 2030 roadmap to India-UK FTA

Foreign Secretary Harsh Vardhan Shringla has met his British counterpart Lord Tariq Ahmad and held a comprehensive review of the UKIndia cooperation in multilateral fora and on global issues and the implementation of Roadmap 2030, a 10-year plan that was unveiled in May for bilateral partnership on the road to a free trade agreement (FTA) Foreign Secretary Harsh Vardhan Shringla has met his British counterpart Lord Tariq Ahmad and held a comprehensive review of the UK-India cooperation in multilateral fora and on global issues and the implementation of Roadmap 2030, a 10-year plan that was unveiled in May for bilateral partnership on the road to a free trade agreement (FTA). Shringla arrived in London on Friday on a two-day visit. He held meetings with his counterpart Ahmad, Minister of South Asia in the Foreign Office, and Philip Barton, the Permanent Under-Secretary of the Foreign, Commonwealth and Development Office (FCDO) on Friday. "Cordial meetings at FCDO of HE Foreign Secretary @HarshShringla with HE Minister of State Lord Tariq Ahmad & HE Permanent Under-Secretary @PhilipRBarton: a comprehensive review of IndiaUK agenda, co-op in multilateral fora & on global issues, implementation of RoadMap2030," the Indian High Commission in the UK tweeted. The Roadmap 2030 was adopted at a virtual summit between Prime Minister Narendra Modi and his British counterpart Boris Johnson to elevate bilateral ties to a comprehensive strategic partnership and guide cooperation over the next decade in the key areas of trade and economy, defence and security and climate change, among others. "Glad to meet @harshvshringla again today. We last met in Delhi - a pleasure to be able to host this time in London. We discussed the continued growth of the - relationship and how, together, the UK and India can provide leadership on global issues and be a force for good," Ahmad tweeted. "Today I welcomed @harshvshringla to London for talks on the delivery of the UK/India #2030Roadmap. The partnership is going from strength to strength as we work towards our shared ambitions," Barton, who previously served as British High Commissioner to India, tweeted.

Source: Economic Times

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Honest taxpayers deserve to be recognized for paying due share of taxes: Nirmala Sitharaman

 In her message to the I-T Department on the 161st anniversary of Income Tax Day, she complimented the department for continuing to work towards simplifying its procedures and processes, and making its functioning hassle-free, fair and transparent. Finance Minister Nirmala Sitharaman on Saturday said honest taxpayers deserve to be recognised for dutifully paying their due share of taxes and appreciated the Income Tax Department for successful implementation of various reforms. In her message to the I-T Department on the 161st anniversary of Income Tax Day, she complimented the department for continuing to work towards simplifying its procedures and processes, and making its functioning hassle-free, fair and transparent. "The minister observed that the honest taxpayers deserve to be recognized for the contribution they are making to the progress of the nation by dutifully paying their due share of taxes... She also lauded taxpayers for discharging their compliance obligations despite the difficulties caused by the pandemic," an official statement said. Minister of State for Finance Pankaj Chaudhary observed that most of the processes and compliance requirements have been shifted to online platforms and the need for taxpayers to physically visit tax offices has been eliminated or minimized. He highlighted the fact that the interaction with taxpayers is now characterized by a spirit of trust and respect, relying more on voluntary compliance. Revenue Secretary Tarun Bajaj also complimented the department for having done well in adapting itself to the emergent changes in the economy and having been able to achieve a healthy growth in tax collections. He also appreciated the initiatives undertaken by the department to reorient its approach towards revenue collection, making its functioning trust-based and taxpayer-centric. Central Board of Direct Taxes (CBDT) Chairman J B Mohapatra lauded the tax officers for their collective efforts and effectively fulfilling their twin role as the revenue earning arm of the nation and provider of taxpayer services. Referring to the larger and farreaching policy measures like 'Honouring the Honest', Faceless Regime and adoption of the Taxpayers' Charter, he noted that these initiatives have made the departmental functioning more transparent, objective and taxpayer-friendly.

Source: Economic Times

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Lower Barriers: India’s tariffs record sharp drop from 17.6% in 2019 to 15% in 2020

 Economists, however, have been critical of New Delhi’s move to undermine liberalisation, achieved assiduously over the years since the 1990s. In a break from the recent past, India’s average applied import tariff dropped to 15% in 2020 from as high as 17.6% in the previous year, recording the sharpest annual fall in about a decade and a half. This reflects a partial reversal of duty hikes that had marked India’s sustained push for import substitution through self-reliance and its response to a spurt in trade protectionism in key economies – especially the US and China — in recent years. The tariff is still higher than the 2014 level of 13.5%. Trade-weighted average tariff — total customs revenue as percentage of overall import value — also eased for a second straight year to 7% in 2019, the lowest since 2014 and compared with 10.3% in 2018, show the latest World Trade Organization (WTO) data. However, as the government undertakes a comprehensive review of various customs duty exemptions this fiscal, in sync with a Budget announcement, this tariff fall may prove to be short-lived unless imposts on scores of products are trimmed as well. While the applied tariff (simple average) on farm products eased to 34% in 2020 from 38.8% in the previous year, industrial tariff declined to 11.9% from 14.1%. Similarly, based on trade-weighted average, tariff on farm items dropped to 32.5% in 2019 from as high as 60.7% in the previous year, while industrial tariff dipped to 5.8% from 8%. These tariffs are meant for imports from countries to which India has accorded the most-favoured nation (MFN) status. Last year, the government reduced customs duties on various products, including crude palm oil, precious metals like platinum and palladium, certain fuels, chemicals and plastics, select machinery and electronics items, sports goods and newsprint. Of course, the duties on certain products were raised as well. India was branded “tariff king” by former US President Donald Trump, who had demanded that New Delhi slash duties on a broad range of products, even though the world’s largest economy turned more protectionist under him. In response, Indian officials have pointed out that New Delhi’s applied tariffs are way below the permissible limit under the WTO framework, or the so-called bound rate (which was 50.8% in 2020). The trade-weighted average tariff is even lower than the simple average one (Washington highlights only the latter). Moreover, unlike other large economies, India hardly uses non-tariff barriers to crack down on imports it deems nonessential or sub-standard. Following a surge in its crude oil import bill in 2018, New Delhi had targeted “nonessential imports” to curb pressure on its current account. It again resorted to increases in customs duties on scores of products in 2019 to prepare the way for its Aatmanirbhar initiative amid an escalating trade war between the US and China. These moves pushed up the applied tariff (simple average) sharply from 13.8% in 2017 to 17.1% in 2018 and 17.6% in 2019. The proposed re-examination of the customs duty exemption is part of the broader effort to promote domestic manufacturing, which, in turn, is expected to curb imports and boost exports. A sustained drop in imports will also help the country lower its trade imbalance, which, some officials reckon, will not just ease pressure on its current account but boost its GDP growth as well. Economists, however, have been critical of New Delhi’s move to undermine liberalisation, achieved assiduously over the years since the 1990s. Former vice-chairman of Niti Aayog Arvind Panagariya has cautioned that the duty hikes can be counter-productive. No major economy has grown 8-10% without opening up its market and India needs to bring down its industrial tariff to at most 10%, he has argued. In a paper with Shoumitro Chatterjee last year, former chief economic advisor Arvind Subramanian said India was turning inward. “Domestic demand is assuming primacy over export-orientation and trade restrictions are increasing, reversing a 3-decade trend,” the paper said. India still enjoys large export opportunities, especially in labour-intensive sectors such as clothing and footwear. “But exploiting these opportunities requires more openness and more global integration,” the paper argued. Analysts have also pointed out duty hikes have been mostly unsuccessful in containing imports, especially from China. Domestic industry, meanwhile, clamours for more protection, arguing that in the absence of credible structural reforms to bring down its costs (including costs of logistics, wage, electricity and credit) and provide it a level-playing field, allowing increased foreign competition is patently unfair. Reforms to boost competitiveness of the economy haven’t been undertaken since liberalisation as they should have, it stresses. Bolstering competitiveness not just enables a country to improve its exports but also reduce costly imports. As pointed out in a 2016 report by HSBC, India’s domestic bottlenecks explain 50% of the slowdown in overall exports (remaining the biggest threat to its outbound shipments), followed by world growth (33%) and the exchange rate (just 17%).

Source: Financial Express

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Make in Odisha: Newly launched 14 industrial units to generate 3773 jobs and Rs 1,537 crore investment  

Odisha’s chief minister Naveen Patnaik recently inaugurated three industrial projects and performed the groundbreaking for eleven with the aim to significantly boost the Make in Odisha initiative. These 14 industrial units will generate employment opportunities for 3773 people in the state with a combined investment of Rs 1,537.07 crore, said the state government. These diverse projects span the sectors of renewable energy, metals and downstream processing, food processing, textiles and apparel, fertiliser, and plastics. Aditya Birla Renewables Limited, IFFCO, Supreme Industries, and Britannia Industries Limited are among the leading companies promoting these projects, said a statement. Chief Minister stated on the occasion, “Odisha is rapidly emerging as the ‘Manufacturing Hub of Eastern India.’ The stable policy and regulatory environment created by my government have facilitated the growth of industries in the state. The implementation of reforms to improve the ease of doing business and the facilitation provided by various departments have ensured that businesses in the state continue to grow.” He added: “Our industries have been actively collaborating with the state government not only on economic development but also on social responsibility.” “During the second wave’s peak, when the entire country was experiencing a medical oxygen shortage, Odisha took a proactive role in assisting other states in supplying lifesaving medical oxygen. Numerous Odisha industries have contributed medical oxygen, tankers, generators, cylinders, and critical accessories.” Aditya Birla Renewables Limited will invest Rs 352.50 crore in a solar power plant in Bolangir, generating potential employment opportunities for over 80 people. Runaya Refining LLP will establish an Aluminium Dross Refining unit in Banjari, Jharsuguda for an investment of Rs 64.43 crore, creating potential employment opportunities for over 175 people. Wild Lotus Fashions will invest Rs 20 crore to establish a garment manufacturing unit in Chhatabar, Khordha, creating potential employment opportunities for over 783 people.

Projects for which ground breaking was performed

A Sulphuric Acid Expansion Project unit with an additional annual capacity of 6,60,000 MT will be established at Paradip, Jagatsinghpur, by Indian Farmers Fertilizer Cooperative Limited (IFFCO) at a cost of Rs 400 crore, generating potential employment for over 21 people. KAI International will invest Rs 265.72 crore to build an iron ore beneficiation plant with a capacity of 1.50 million tonnes per annum and a pellet plant with a capacity of 1.20 million tonnes per annum at Lahunipada, Sundargarh. The project will create potential employment opportunities for over 475 people. Supreme Industries Limited will establish a manufacturing unit in Khuntuni, Cuttack with a capacity of 55,000 MT per annum for the production of plastic pipes, PVC water storage tanks, and allied plastic products at a cost of Rs 151.30 crore, creating potential employment opportunities for over 320 people. Britannia Industries Limited’s manufacturing unit for Biscuits, Cakes, Rusk, and other bakery products in Khordha will be expanded with an additional annual capacity of 30,000 MT at a cost of Rs 93.60 crore, creating potential employment opportunities for over 350 people. Niren Kumar Anand has invested Rs 62.44 crore in a footwear manufacturing unit in Champajhar, Khordha, which will create potential employment opportunities for over 620 people. Astral Polytechnik Limited will establish a manufacturing facility for HDPE and thermoplastic pipes in Ramdaspur, Cuttack, with an investment of INR 60.06 crore, creating potential employment opportunities for over 150 people. Jay Bharat Spices will establish a food processing unit and cold storage facilities in Ramdaspur, Cuttack, at a cost of Rs 50.10 crore, creating potential employment opportunities for over 550 people. Printech Offset private limited will establish an offset printing and book-binding unit in Jaymangal, Khordha for an investment of Rs 6.74 crore, creating potential employment opportunities for over 64 people. Renewable Envirogic (P) Ltd. has invested Rs 5.33 crore in a biomedical waste management plant in Choudwar, Cuttack, which will generate potential employment opportunities for over 102 people. Arnab Care & Food will invest Rs 2.20 crore to establish an organic fertilisers and manure processing unit in Choudwar, Cuttack, creating potential employment opportunities for over 34 people. Pratistha Ventures will invest Rs 2.65 crore to establish a food processing unit for noodles, papad, and pickles in Choudwar, Cuttack, creating potential employment opportunities for over 49 people. Jagatsinghpur district leads the list of investments with a Rs 400 crore investment by IFFCO, followed by Bolangir with a Rs 352.50 crore renewable energy project, Cuttack with six projects worth Rs 271.64 crores, and Khordha with four projects worth Rs 182.78 crores. Other districts, such as Sundargarh and Jharsuguda, received investments totalling Rs 265.72 crore and Rs 64.43 crore, respectively, through various industrial projects, the state government said. Since November 2017, a total of 195 projects have been inaugurated totalling Rs 92,460.84 crores in investment and providing employment for over 1,18,211 people. Odisha’s rapid industrial development is facilitated by the state’s single window approval mechanism and rapid implementation of projects said the state government.

Source: Tech observer

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Manifold Rise in Khadi Sales following PM’s Push through “Mann ki Baat”

 The sale of Khadi products across the country has grown tremendously since 2014, thanks to the repeated appeals of Prime Minister Shri Narendra Modi to promote Khadi. Since October 2016, the single-day sale at Khadi India’s Flagship Outlet in Connaught Place, New Delhi, has crossed Rs 1 crore mark on 11 different occasions. This record performance of Khadi found a special mention in the latest episode of Prime Minister’s radio program “Mann kiBaat” aired on Sunday, 25th July. What makes this performance even more significant is the fact that Khadi’s single-day sales exceeded Rs 1 crore for 4 times in October - November 2020, despite the economic distress and the fear surrounding Corona pandemic. Earlier in 2018 also, the single-day sales at Khadi’s CP outlet had crossed Rs 1 crore mark for 4 times. On 2nd October 2019, Khadi and Village Industries Commission (KVIC) registered the highest single-day sale of Rs 1.27 crore at the CP outlet which continues to be a record till date. It was for the first time on 22nd October, 2016, that the single day sale at Khadi India outlet in CP had reached Rs 1.16 crore. Earlier, the highest single day sale of Khadi stood at Rs 66.81 lakh that was recorded on 4th October 2014, just a day after the Prime Minister’s first address through “Mann kiBaat”. In the first episode of his radio program, the PM had appealed the countrymen to buy at least one Khadi product as it would help poor artisans to light lamps on Diwali. KVIC Chairman Shri Vinai Kumar Saxena attributed the growth in Khadi sales to the constant support of the Prime Minister to promote Khadi. He said it is because of the Hon’ble PM’s appeals that a large number of people particularly youths have been inclined to buy Khadi. The growing buzz around “Swadeshi” has significantly helped lakhs of village industries prosper even during the challenging times of Covid-19 pandemic. It is pertinent to mention that despite the severe impact of Covid-19 pandemic, KVIC, in 2020-21, registered its highest ever annual turnover of Rs 95,741.74 crore, as compared to Rs 88,887 crore turnover in 2019-20, and thus registering a growth of 7.71%.

Source: PIB

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Sri Lanka: Industrial production shrinks further in May as lockdowns take hold

The country’s manufacturing activities, which plunged in April, shrank further in May after movement restrictions on and other economic activities were intensified disrupting the smooth functioning of factories, putting a further dent on their output. The Index of Industrial Production (IIP), the key gauge of the country’s factory output, slipped to 93.2 index points in May from 93.9 index points in April but up from 79.2 index points in the same month in 2020 when the factories started re-opening from nearly two months long lockdowns. Among the key industries which contributed to the dent in the overall industry output were food products and beverages, which recorded index points of 92.8 and 91.8 respectively from 103.3 and 126.1 index points in April this year. This also explains why the prices in the domestic market rose for key staples consumed by people as the virus related restrictions dealt a blow to key food supply chains. The manufacturing of tobacco products also fell slightly in a telltale of weaker sales at Ceylon Tobacco Company PLC during its fiscal second quarter due to a mandatory closure of retail outlets for a month through June 21, when the lockdowns ended. Meanwhile, the manufacturing of textiles showed some recovery as the index rose to 136.2 points from 97.8 points in April but wearing apparels slipped further as reflected from the index fall to 68.8 points from 73.4 points in April. The two related industries reported 135.5 and 131.2 index points each in March as the textile and garments industry was off to a robust ascent from domestic and foreign demand. However in June, activities in the broader factory activity appeared to have recovered from the depths they reached in May as the Purchasing Managers’ Index for manufacturing pointed to a surprise expansion in June although three weeks in that month was under lockdown. Among the other prominent industrial activities, which recovered from the April slump were manufacturing of coke and refined petroleum products, chemical and chemical products, rubber and plastic products and manufacturing of basic pharmaceutical products and pharmaceutical preparations.

Source: Daily Mirror

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 New UK scheme aims to drive trade with Sri Lanka and boost jobs and growth

 The UK government launched a consultation on new trading rules recently. The UK Developing Countries Trading Scheme (DCTS) is a major opportunity to grow free and fair trade with 70 qualifying countries including Sri Lanka. The proposed scheme will mean more opportunity and less bureaucracy. This includes improvements such as lower tariffs and simpler rules of origin requirements for countries exporting to the UK, allowing countries to diversify their exports and grow their economies. The British High Commissioner in Sri Lanka Sarah Hulton said: “The proposed DCTS scheme signals the UK’s appetite to promote global free and fair trade, as well as demonstrating our commitment to Sri Lanka, by enabling Sri Lankan businesses to access the UK market more easily. Bilateral trade between the UK and Sri Lanka stood at GBP1.2 billion in 2020, and there is room for growth. I encourage people here in Sri Lanka to contribute to this important consultation, which is open to all”. The consultation on the UK’s new scheme runs for eight weeks and seeks the view of all sectors of society, including businesses, the public, civil society groups, consumers, associations, partner governments and any other interested stakeholders. Currently the UK operates a similar scheme rolled over from the EU, but as an independent trading nation can now take a simpler, more generous, pro-growth approach to trading with developing countries. The UK’s International Trade Secretary Liz Truss said: “Trade fundamentally empowers people and has done more than any single policy in history to lift millions of people around the world out of poverty. Now the UK is an independent trading nation we have a huge opportunity do things differently, taking a more liberal, pro-trade approach that leads to growth and opportunity. Countries like Bangladesh and Vietnam have proven it’s possible to trade your way to better living standards, and our new Developing Countries Trading Scheme will help others do the same.” Responses to the consultation can be given via GOV.UK until the closing date of 12 September 2021.

Source: The Island

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Weaving together the past and the future

 THE PAST and the future were woven together in a panel discussion about reviving and preserving traditional fabrics from the Cordilleras, but also bared issues such as health hazards and cultural appropriation. The panel discussion, titled “Habi: Weaving Philippine Textiles’ Future,” was organized by Advancing Philippine Studies at HU, based at the Institute for Asian and African Studies, Humboldt-Universität zu Berlin, with the support of the Philippine Embassy in Berlin and the Philippine Studies Series Berlin. The speaker was Prof. Dr. Analyn Salvador-Amores of the University of the Philippines — Baguio and Museo Kordilyera who gave the talk “Agabel Tayo! Let’s Weave: Textile Revitalization in the Philippine Cordillera.” A second talk on Philippine silk and pina fabric was led by Deputy Speaker Loren Legarda (“Piña Weaving and Embroidery in the Philippines”). During the talk, Dr. Salvador-Amores, director of the Museo Kordilyera, discussed the origins of weaving in the Cordilleras. She noted, for example, that the Southeastern part of the Central Cordillera is linked to the Sierra Madre mountains, and “seem to have no evidence of weaving in the past.” On the other hand, the Northeastern side enjoyed a booming weaving industry. “They have confluences with the Ilocos region, through trade, migration, and intermarriage. As such, you can see similar patterns, techniques, methods, and belief systems surrounding the tradition of weaving,” she said. “Every weaving group in the Cordillera has their own distinct design, color, and local meaning that exemplify complex relations with their use of textiles,” she said. She notes that red is a dominant color, and weaving is usually done on the backstrap loom, though some groups have adopted the foot loom (an innovation introduced by Ilocano weavers). Anthropologist George Ellis, she said, posits that there was already a diffusion of textiles in the mountains before the 18th century. Another anthropologist, Patricia Afable, suggests that the trade of abel (or woven cloth) in Northern Luzon goes back to at least the 1700s, though interactions have already been recorded as far back as the 1500s, said Dr. Salvador-Amores. Apparently, the cloth had been so valuable that it could be used to trade for gold, pigs, carabaos, salt, jars, and horses. The traditions in weaving are usually passed by grandmothers to their female kin. And therein lies the problem of its slow decline. Ms. Salvador-Amores presented data that master-weavers and expert weavers, on average, are aged from their 70s to their 80s. “The sustainability of knowledge in weaving of the region declines parallel with the aging expert weavers and master-weavers,” she said. Furthermore, the fabrics take a little bit of their weaver with them. She reports that weavers suffer from skeletal problems in the neck, shoulders, and lower back; chronic lower back issues, poor eyesight, and upper respiratory illnesses, among other health issues. “This perhaps is one of the many reasons why young people are dismayed by the tedious process, the hazards, and the long process of weaving.” The local youth are also not interested due to the development of the market, globalization, urbanization, and the many other -ions that erode traditional crafts. “Knowledge in weaving is often not transferred from one generation to the next,” said Dr. Salvador-Amores. There are other factors at play: a decline in cotton yields have made weavers turn to commercial threads. While this enabled them to weave more, it’s usually to mass-produce textiles meant to cater to tourists “making them vulnerable to cultural appropriation.” She then cited an example — she had spotted fake Cordillera textiles in the Baguio City Market, imported from Divisoria in Manila. While she acknowledges that the government has undertaken measures to assist weaving groups, she said, “They remain insufficient.” She cited RA 9242 (The Philippine Tropical Fabric Law) which prescribes the use of native textiles for uniforms of government officials and employees, the Indigenous Peoples’ Rights Act, and the Intellectual Code as being able to stir awareness for the fabrics. She said though that “These are inadequate and fail to recognize the unique concepts of ownership of the community in rights and responsibilities as well as the indigenous peoples’ concept of creation and invention.” More effective, in her opinion, are the Schools for Living Traditions which aim to teach weaving in schools in Kalinga, Benguet, and in Kiangan. However, lack of institutional and financial support has put them in peril. A solution by the Department of Education was to integrate weaving into the technical-vocational track for Senior High School. Meanwhile, Ms. Salvador-Amores’ team in the Cordillera Textiles Project (Corditex) have been taking archival photographs of Cordillera textiles from museum collections from all over the world, and reproducing them within the source communities. There’s also the Geographical Indication Product (GI) program, under the auspices of the Intellectual Property Office, which protects goods when their “quality and reputation are attributable to the geographical origin.” However, no such application for recognition has been filed on behalf of Cordillera textiles as of yet. “Protection through the GI is the first step in empowering local weavers. A GI specifies the place of origin of a cloth and how it has been produced,” explained Ms. Salvador-Amores. With these projects, one can hope the threads between the Cordillera fabrics’ part and future will not be cut. — Joseph L. Garcia

Source: Business World

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Pakistan: Credit to private sector spikes 12% to Rs6.82tr

Temporary Economic Refinance Facility plays key role in boosting banks’ credit. The banks’ credit to the private sector jumped 12% to a total of Rs6.82 trillion in the previous fiscal year (FY21), as a number of sectors- including those which got government’s support and those that played a key role in turning the economy aroundborrowed more during the year. The credit increased by Rs741 billion from FY20’s level of Rs6.08 trillion, according to the data reported by Pakistan’s central bank on Friday. “The percentage of banks’ credit to the private sector grew in double digits in FY21 compared to annual historical disbursement that expanded by single digit in percentage terms,” BMA Capital Executive Director Saad Hashmey said while talking to The Express Tribune. “The central bank’s Temporary Economic Refinance Facility (TERF), aimed expansion of existing industries and establishment of new ones, played a key role in boosting banks’ credit to the private sector during the year,” he said. Besides, government incentives to the construction sector, small and medium-sized enterprises (SMEs) and new automotive policy also played a vital role in encouraging the respective sectors to enhance borrowing and expand production capacity despite Covid19 risk, he said. Sectors that prominently increased their borrowing from banks included construction and allied industries such as cement and steel, pharmaceutical manufacturers, textiles manufacturers, power generation, transmission and distribution sector and telecommunication. Moreover, borrowing from software manufacturers, manufacturers of food products, fertiliser and pesticides manufacturers, tyres and tubes manufacturers, refrigerators and motorcycles manufacturers and automobile parts makers spiked as well in the period under review. Besides, sectors pertaining to mining of coal and lignite, retail sale of automotive fuel in specialised stores and pumps, manufacturers of vegetable and animal oil and fats and personal loan like car and housing finance recorded significant rise in loans in the past one year. Hashmey recalled that banks had approved a total of Rs436 billion under TERF till March 31, 2021. The central bank introduced the loan facility for a limited period of one year in March 2020 and commercial banks provided the loan at an interest rate ranging between 3-5%. “The expansion of industrial sector would help boost industrial output, especially that of the large scale manufacturing (LSM) sector,” he said. “All this will jointly extend the much needed support in attaining the economic growth target of 4.8% and increasing export earnings in the current fiscal year 2021-22.” He said that the increase in bank borrowing was well supported by soaring deposits at banks in Pakistan. He recalled that the government announced an amnesty scheme for investment in housing and construction sector under which the source of income of investors would not be questioned. Besides, it aggressively slashed tax rates on housing and construction sector, especially on purchase and construction of homes by people belonging to lower and middle income groups. The government also paid the utility bills of SMEs for three months during initial month of the pandemic outbreak in the country ie February 2020, he recalled. “The monetary easing in the face of aggressive 625 basis points cut in the benchmark interest rate during March-June 2020 to 7% at present also supported the growth in banks’ financing to the private sector,” he said. The outstanding banks borrowing by the entire documented manufacturing sector rose to Rs3.55 trillion in FY21 compared to Rs3.12 trillion on June 30, 2020, according to State Bank of Pakistan’s (SBP) data.

Source: The Tribune

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