According to a notice of the Directorate General of Trade Remedies (DGTR), where the industry is fragmented and consists of an excessively large number of domestic producers, the application for antidumping or countervailing duty investigation can be filed by an association on behalf of the domestic industry According to a notice of the Directorate General of Trade Remedies (DGTR), where the industry is fragmented and consists of an excessively large number of domestic producers, the application for antidumping or countervailing duty investigation can be filed by an association on behalf of the domestic industry. The government has simplified the procedure for filling applications seeking antidumping duty investigations by fragmented industries, a move aimed at promoting ease of doing business and expediting trade remedy measures for small and micro units. According to a notice of the Directorate General of Trade Remedies (DGTR), where the industry is fragmented and consists of an excessively large number of domestic producers, the application for antidumping or countervailing duty investigation can be filed by an association on behalf of the domestic industry. However, it said, such domestic producers must have at least 50 per cent share in total eligible domestic production of the product, over which antidumping duty is being requested. As per the simplified procedure, all the domestic producers in such cases would not be required to provide detailed data like labour and per unit power cost, instead, all such producers will be required to file "basic injury information" such as turnover, installed capacity, exports, and domestic sales. "The authority (DGTR), for the purpose of determining injury margin may limit detailed examination of applicant domestic producers to a limited number of domestic producers," it added. The directorate will use sampling methods under which a limited set of producers would have to provide complete data or information.
Source: Economic Times
With Piyush Goyal replacing Smriti Irani as the new textile minister, following the recent union cabinet reshuffle, there seems to be a humongous task lying ahead of him. It is reviving the ailing textile and apparel sector. Providing direct employment to 45 million people, and indirect employment to 60 million people, this highly labour-intensive sector is only behind overall agriculture in terms of employment generation. However, in recent years, India has significantly lost its global competitiveness in textile and clothing to countries like Bangladesh and Vietnam. As a result, textile and garment exports in the sector have plummeted. While India’s overall merchandise exports reached an all-time quarterly high of $95 billion in the three months ending June 2021, readymade garments experienced double digit declines, as compared to June 2019 levels. India currently ranks sixth in the top world exporters of textile and apparel and has witnessed a decline in its share in global exports of textile and apparel from 4.84 per cent in 2015 to 4.34 per cent in 2018 at a CAGR of (-) 1.14 per cent (Trade Map, 2019). While the sector’s growth performance had deteriorated even before Covid, the pandemic induced subdued domestic demand coupled with declining exports because of the lockdowns have had a double blow for the manufacturers. To boost local manufacturing and exports to shore up employment in the sector, the government had recently approved the Production Linked Incentive (PLI) Scheme for the sector, with a total outlay of Rs. 10,680 Crore under the aegis of Atmanirbhar Bharat Abhiyan. The focus of the scheme is proposed to be on Man-Made Fibre (MMF) apparel and technical textiles. It is expected that the scheme could cover forty product categories under MMF, whereas ten under the technical textile segment. It is likely that incentives would be provided to both greenfield and brownfield investments under this scheme, between 3 to 11 per cent of the incremental revenues’ year-on-year for five years. By focusing on these two non-conventional segments, the PLI scheme for textiles is expected to bring about structural changes in the textile sector. While these changes could definitely help to diversify the export basket, the revival of exports could be short-lived. What we require is a much deeper participation by India in the manufacturing global value chains. The current Indian technical textiles market constitutes merely 13 per cent of India’s total textile and clothing market. As the production process is getting fragmented globally, the idea to boost production alone does not go very far in alleviating exports. Nor does it help the ‘Make in India’ cause of the government. Our recent study at ICRIER shows that India’s exports are becoming importoriented, as the foreign content in exports increased sharply from 15.9 per cent in 2003- 04 to 27.2 per cent in 2013-14. In the textile sector, the study estimates that the foreign value-added share rose from 13.03 per cent in 2003-04 to 19.40 per cent in 2013-14. As the cost of labour has been rising progressively in China, it is losing its competitive edge in labour-intensive industries like textiles. India, with its large labour force and a vast domestic market, has a great opportunity to step up and fill the gap. Getting integrated into the GVC for textiles can help immensely in creating widespread employment and reviving exports by fostering innovation. While integrating into GVCs seems the way forward, one must be mindful of the huge skill gap existing in the sector. According to our 2019 study at ICRIER, skill mismatch in India’s textile and clothing sector stood at a whopping 68 per cent in 2011-12, as against the overall skill mismatch of 33 per cent in Europe, and 54 per cent in Turkey. Over the years, export related jobs have grown at a much faster rate than overall employment. While a chunk of these jobs has gone to persons with below secondary education, the rate of growth of these low-skilled jobs has declined. Our recent estimates show that the share of unskilled jobs tied to textile and allied exports declined from 29.64 per cent in 2003-04 to 23.67 per cent in 2013-14. The share of high-skilled jobs increased from 20.91 per cent to 26.15 per cent during the same period. With the skill composition of export related jobs shifting towards high skill, we require greater investment in skill development to make sure that we do not expose the less skilled workers to the risk of offshoring. The newly appointed textile minister, Piyush Goyal, who also leads the Centre’s PLI scheme under his charge as the Minister of Commerce and Industry is likely to review the scheme soon. It is expected that the scheme would incentivize the textile manufacturers to integrate more deeply into the GVCs for reviving growth and generating employment in the textile industry.
Source: Economic Times
Union Minister for Commerce & Industry, Consumer Affairs and Textile, Shri Piyush Goyal has expressed satisfaction over the reforms introduced in examining and granting of patents, designs, copyrights and trademarks, saying the ‘ease of doing business’ will go a long way in catapulting India as an innovation hub. The Minister reviewed the functioning of the Office of Controller General of Patents, Designs and Trademarks in Mumbai yesterday and deliberated on ways to build a robust Intellectual Property Rights infrastructure. Shri Goyal reiterated Government’s commitment to bolster the ecosystem of patents, design, trademarks, GI (Geographical Indication) systems; to encourage innovation, research & development in the country and bring newer inventions and knowledge from India's heritage systems to global platform. He emphasized Prime Minister Shri Narendra Modi has been closely monitoring developments in this field since 2014 itself. Shri Goyal while speaking about the CGPDT’s speedy disposal of applications informed that, “The pendency in the IPR department has come down drastically. It has also been decided that any pending application should be completed within days and not months.”
Fees for Start-ups, MSMEs, women entrepreneurs reduced by 80%
Shri Goyal also mentioned about the reduction in fee allowed by the department in order to help and support Startups and Women entrepreneurs in the country. Filing fees for Startups, MSMEs, Women entrepreneurs has been reduced by 80%. The Minister added that emphasis has been laid on using Digital means. Every application is now processed online from start to finish, hearings are conducted on phones, people don’t have to travel to patent offices now. Shri Goyal also made a few suggestions to make the whole process more user friendly. He called for more efforts to increase awareness about GI tag and its significance. He also asked to consider instituting scholarships for students studying the Intellectual Property law as well as engage faculty from renowned institutions on a part time basis to help in the patent examination process.
Simplified procedure, growing innovation
Officials of CGPDT briefed how the IP process has been simplified and streamlined than before and also about the re-engineering of the whole process including new timelines for disposal and shift to digital mode to promote ease of filing and obtaining services. For example, under Trade Mark Rules 74 Forms have been replaced by 8 Consolidated Forms. They also mentioned that special care is being given to expedite examination of patents filed especially for applications filed by Startups, Women Entrepreneurs etc. While assessing impact of measures taken, it is noted that E-filing has increased from 30 % to more than 95%. India has also seen a rapid increase in grant of patents, copyrights in the last 5-6 years. The number of patents granted has gone up from 6,326 in 2015-16 to 28,391 in 2020-21, while Trade Marks registration has shot up from 65,045 in 2015-16 to 2,55,993 in 2020- 21. Similarly, while 4,505 Copyrights were granted in 2015-16, a total of 16,402 were granted last fiscal. These developments have reflected positively in improvement of India’s ranking in Global Innovation Index. India has climbed 33 notches from 81st position in 2015-16 to 48th in 2020. About the Office of Controller General of Patents, Designs and Trademarks The Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM) is located at Mumbai. It functions under the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. The Controller General supervises the working of the Patents Act, 1970, the Designs Act, 2000 and the Trade Marks Act, 1999 and also renders advice to the Government on matters relating to these subjects. The Head Office of the ‘Patent office’ is in Kolkata, ‘Trade Mark Registry’ is in Mumbai and the ‘GI Registry’ is in Chennai. The Offices of ‘The Patent Information System’ (PIS) and ‘National Institute of Intellectual Property Management’ (NIIPM) are at Nagpur.
Source: PIB
Union Commerce & Industry Minister Shri Piyush Goyal today said that the services sector holds a lot of promise in aiding economic recovery during the post Covid period. Addressing the ‘2nd Indo-US Services Summit’, organised by Indo American Chamber of Commerce (IACC), Shri Goyal observed that India and the US are working towards peace and stability across the world. He said the services trade will play a very important role in the two countries ever expanding relations. “India & US are two natural partners and our relationship has stood the test of times due to our shared values of equality, liberty and democracy” he added. Shri Goyal recalled the Y2K challenge two decades back and how the Indian talent helped US deal with it and how the world started noticing India’s skills, capabilities and commitment like never before. “It changed the perception of India,” he remarked. The Minister said India is now moving beyond a ‘low-cost service provider’ to a ‘high value add partner’ and added that the back offices in India are evolving into brain offices. Giving examples of the 57 Start Up Unicorns, Shri Goyal said the entrepreneurial spirit of young Indians will place the country in the forefront. The Minister informed that the total Services Exports from India to the world was $17 bn in 2001-02 and has now leapfrogged to $ 205 bn in 2020-21, registering a Twelve fold increase. “When we talk of India-US partnership, we each have areas of strengths where we excel. US is hub of innovation, technology, research & quality education. India has skilled and intelligent manpower at competitive cost. Uniting our strengths will create an unbeatable combination” Shri Goyal remarked. The Minister further said that India is also rapidly progressing to become one of the world’s largest digital markets. Hospitality, Fintech, Agritech, Entertainment, Accountancy, Law, Cyber security, Healthcare & tourism etc. are some of the areas where India and US can cooperate with mutual benefits. Shri Goyal applauded the good work by service industry stakeholders and said that India has met all its service commitments that it had across the world without failure throughout the last 15-16 months. “Our services exports are back to 97% level of the previous year,” he said. Shri Goyal appreciated the efforts taken by the IACC for choosing such a relevant topic at such crucial times when the world is fighting the Pandemic. “The IACC who has always been at the forefront of strengthening the Indo US relations has initiated this dialogue at a very critical time,” he said.
Source: PIB
To achieve the ambitious goal, exports must grow 15% CAGR, against barely 5% in the five years through FY20 India will aim to more than double its annual goods and services exports to over $1 trillion by FY26 under the new foreign trade policy (FTP), as it seeks to tailor its policies suitably to cash in on an expected rebound in global economic growth, sources told FE. This will warrant a substantial, and sustained, scaling up of exports — to a compounded annual growth rate of 15% until FY26 from about 5% in the five years through FY20 (before the pandemic). The country had targeted annual exports (merchandise and services) of $900 billion under the extant FTP but managed to realise a maximum of $538 billion (in FY19), as goods shipments mostly faltered. However, government officials feel that given the potential revival in external demand, elevated international commodity prices and acceleration in domestic manufacturing due to production-linked incentive schemes, the ambitious export target could be met this time. Still, for this to happen, the government will have to address the usual structural issues, including high logistics costs, refund taxes on inputs consumed in exports on time and firm up free trade agreements with key markets early, exporters reckon. The next FTP, usually valid for five years, will come into force from October 1. Since the FTP is being designed in the aftermath of the Covid-19 outbreak, it would focus on ensuring India’s greater integration with the global supply chain and reducing its elevated logistics costs. Also, the Atmanirbhar Bharat initiative will find a befitting expression in the policy, said one of the sources. However, given the re-prioritisation of spending, necessitated by the pandemic, the availability of budgetary resources to boost exports may remain inadequate, which could be a key hurdle to impressive trade growth, sources said. To partly make up for this, the government could do away with a plethora of redundant paperwork and formalities and relax the compliance burden of exporters. To boost services exports under the new FTP, the government may revamp the Service Exports from India Scheme (SEIS) to cover more businesses, especially MSMEs, or roll out a new programme altogether, sources said. Under the extant SEIS, the government offers exporters duty credit scrips at 5-7% of the net foreign exchange earned. The proposed Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for mechandise exporters, the refund rates under which are yet to be announced, will also be a part of the FTP. Sources had earlier told FE that the government could retain certain key export schemes, such as those relating to special economic zones and export-oriented units, in the new FTP as well, even though these have been challenged at the World Trade Organization (WTO). However, any new scheme within the FTP will be designed in sync with WTO stipulations. The government may also bolster its support for MSME exporters to market their products, one of the sources said. It may continue to offer aid under the Trade Infrastructure for Export Scheme (TIES), which was supposed to continue up to 2020 but is still operational. However, assistance under the TIES, meant for improving export competitiveness by building trade infrastructure, could be slashed from the initial allocation of Rs 200 crore per year. Key elements from a national logistics policy, which has been in the works for months, will likely feature in the FTP. This policy will aim to reduce logistics costs from 13% of GDP to 8% over five years. Commenting on export prospects, Ajay Sahai, director general and chief executive at exporters’ body FIEO, said order books for supplies until October remain impressive, and the trend will likely continue. However, supply side remains a challenge. Shipping costs have skyrocketed worldwide and exporters face an acute shortage of containers. Still, with government support, export target of $400 billion for FY22 can be realised. The International Monetary Fund last week revised up its earlier predictions of global trade volume growth by a sharp 130 basis points for 2021 to 9.7% and 50 bps for 2022 to 7%. India is set to benefit from the brightening global trade prospects once its supply side gains traction.
Source: Financial Express
Gross GST collections, after remaining above the Rs 1-lakh-crore mark for eight months in a row, came in at Rs 92,849 crore in June (May transactions), reflecting the blow to the economy from a virtually pan-India lock-down. Gross goods and services tax (GST) collections came in at an impressive Rs 1.16 lakh crore in July (largely June transactions), up a third on year and a quarter on month, reflecting a smart economic recovery after the second Covid-19 wave. That in the first 25 days of July, the average daily e-way bill generation was 8.8% higher than the level in June and 54% higher than in May indicates the August collections (from July sales) could be even higher. Thanks to steps taken to improve compliance and a shift of business away from the informal sector, GST seems starting to yield the revenue productivity its proponents ascribed to it. Even as the weighted average GST rate continues to be around 11% against the revenue neutral rate computed of 15% or thereabouts and major items like auto fuels are still outside GST net, the collections have shown an upswing for several months till the pandemic’s second wave hit businesses. Gross GST collections, after remaining above the Rs 1-lakh-crore mark for eight months in a row, came in at Rs 92,849 crore in June (May transactions), reflecting the blow to the economy from a virtually pan-India lock-down. Of the gross GST revenue collected in the month of July 2021, Central GST was Rs 22,197 crore, State GST Rs 28,541 crore, Integrated GST Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and cess Rs 7,790 crore (including Rs 815 crore collected on import of goods). During July, revenues from import of goods were 36% higher and the collection from domestic transactions (including import of services) were 32% higher than the revenues from these sources during the year-ago period. “GST collection, after posting above Rs 1- lakh-crore mark for eight months in a row, dropped below Rs 1 lakh crore in June 2021 as the collections during June 2021 predominantly related to May 2021…,” the finance ministry said. “With the easing out of Covid restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. The robust GST revenues are likely to continue in the coming months too,” the ministry said. For the second year in a row, the Centre will borrow under a special, relatively low-cost mechanism in 2021-22 to bridge a yawning shortfall in the GST compensation cess pool and transfer the funds to states as back-to-back loans, sans any big fiscal cost to states. The plan is to borrow under this window in Rs 1.58 lakh crore in 2021-22. While the amount borrowed under the RBI-enabled mechanism last year was Rs 1.1 lakh crore, the Centre recently acknowledged in Parliament that an amount of Rs 81,179 crore was yet to be released to the state governments towards fully compensating them for their GST revenue shortfall for the financial year 2020-21.
Source: Financial Express
The Noida Apparel Export Cluster (NAEC) has sought a complete ban on the export of Indian cotton and yarn to increase production in the domestic apparel industry, so that the finished products may be exported internationally to fetch more revenue. The Noida Apparel Export Cluster (NAEC) has sought a complete ban on the export of Indian cotton and yarn to increase production in the domestic apparel industry, so that the finished products may be exported internationally to fetch more revenue. The cluster also said a ban on export of cotton and yarn will ensure more availability of raw material for the apparel industry, which has been in the doldrums for the past six months on account of Covid-19 induced slowdown, and enable it to compete in the global export market. Lalit Thukral, president of Noida Apparel Export Cluster and convener of ready-made garments (RMG), Uttar Pradesh Export Promotion Council, said the industry is already reeling under huge losses caused by the pandemic and the large-scale export of cotton and yarn has come as a double blow. It may be noted here that Noida’s share in apparel export in the last financial year was USD 3.5 billion. According to the ministry of textiles figures, the country exported nearly 12 million bales of cotton and yarn in the past two financial years. Data showed that India exported around 5.5 million bales of cotton and yarn to Bangladesh, Vietnam and China last fiscal. Of this, 2.197 million bales (about 275 million kilograms) were to China alone. While the export of cotton and yarn generates a revenue of around USD 75 billion every year, Thukral said if the export is banned and more raw material is made available to the apparel industry, then the export of ready-made garments will generate a yearly revenue of about USD 40 billion. He further said the export was eating into the availability of raw material for the domestic ready-made garments industry – only half of its yearly requisition of 12 million bales is being met currently. “The government has set us a target of generating USD 400 billion in merchandise export, i.e export of different varieties of readymade garments. In order to meet this, we have no option but to request a ban on the export of cotton and yarns,” he said. Pointing out that the textile and apparel industry account for 7% of the country’s industrial output in value terms and contributes 2% to its GDP, Thukral said the industry also provides employment to around 105 million people (45 million directly and 60 million indirectly). “Incidentally, 72 million of these workers are women, mostly from rural areas. The apparel industry also plays a pivotal role in foreign exchange earnings -- it brought in foreign exchange earnings amounting to USD 12.28 billion during fiscal 2020-21,” he said. Thukral said countries such Bangladesh, Vietnam, Thailand and even China import the cotton and yarn from India at a price agreed upon six months in advance, with assurance of availability, while the Indian apparel exporters have agreements with importing countries for six months at a price fixed in the agreement, irrespective of any calamity or damage. “This is because we have no free trade agreement (FTA) or preference trade agreement (PTA) with European countries, which would safeguard us against price fluctuations,” he said. Neeraj Prakash, another exporter, said, “The ready-made garments industry here depends on cotton, silk and wool. Nearly 75% of the raw material used in apparels is cotton, which directly supports the farmers. But the industry is currently facing an acute shortage of cotton yarn, which is hitting production, employment and export. Also, the steep rise in the price of cotton, the hike ranging from 30% to 60%, over the past six months has also led to an increase in the cost of production, making it even more difficult for the industry to compete globally,” he said. A joint secretary rank official in the ministry of textiles, said on condition of anonymity, “India exported around 50% cotton and yarn to China the last fiscal. “Our ministry has set a target for merchandise export of USD 400 billion in the current fiscal 2021-22. We’ll soon ban the export of cotton and yarns as it not only affects employment generation (more raw material will provide direct/indirect employment to at least 9 million more people), but also hampers the growth of apparel manufacturers and exporters,” he said.
Source: Hindustan Times
Vietnam’s garment-textile export turnover hit nearly 19 billion USD in the first six months of 2021, up more than 20 percent year-on-year. Vietnam’s garment-textile export turnover hit nearly 19 billion USD in the first six months of 2021, up more than 20 percent year-on-year. The positive results was attributed to early post-pandemic recovery of markets. However, Chairman of Chairman of the Vietnam National Textile and Garment Group (Vinatex) Le Tien Truong, said businesses are facing new challenges due to severe impacts of the fourth wave of COVID-19 outbreaks, which started from late April in the country. According to Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang, Vietnam set to earn 39 billion USD from garment and textile exports in 2021. To realise the target, businesses need to proactively seek sources of raw materials for domestic production in order to take advantage of opportunities from new-generation free trade agreements that Vietnam has joined. Businesses need to promote chain-based production and have specific measures to expand markets, thus further pushing exports, Giang suggested. Representatives from other garment and textile companies said businesses should pay attention to moderlising production equipment, expanding production and improving workers' capacity, thus meeting high quality orders and demanding requirements of importers.
Source: Vietnam plus
Ambassador of Pakistan to Italy, Jauhar Saleem on Sunday said that Pakistani-Italian bilateral relations are looking at new dimensions to enhance mutual cooperation and economic activities in different sectors. Negation between both of the sides on enhancing cooperation in the fields of trade, labour market, tourism, agriculture, energy, investment, innovation and skills and media sectors are in the final stages, he said this while talking to the media through 2nd series digital ‘Zoom Link’ webinar organized by the embassy of Pakistan in Rome. Jauhar Saleem said that Italy and Pakistan have agreed in principle to negotiate a labour agreement that will give Pakistan comprehensive market access to Italian labour market. He informed that Pakistan has been included in Italian Seasonal Work Visa for 2022 which would offer an immense opportunity for our labour force working in the agriculture and services sector to come and work in Italy with legal entry mode. He informed me that Italian firms are investing in energy, food processing, leather, textile, construction and furnishing. He added that the Mission is promoting Joint Venture mode for Italian investment in Pakistan that will help in technology and skill transfer to our businesses. Jauhar Saleem said that once the travel restrictions are eased there will be an increased number of Italian investor delegations to Pakistan. He also highlighted the initiatives that have been taken to promote tourism, especially capacity building of Pakistan`s tourism sector stakeholders through Italian experts. On the multilateral front, Ambassador Jauhar Saleem informed that Pakistan has been elected President of IDLO for two years which would help in promoting Pakistan`s leading role on different forums along with taking advantage of IDLO`s technical assistance for Pakistan. Meanwhile, he informed that Pakistan has posted a trade surplus of $ 300 million with Italy in Fiscal year 2020-21, which is 49 percent higher than the previous year of 2019- 20. The Ambassador informed that Pakistan’s exports to Italy have reached all-time high i.e. $ 786 million in FY 2020-21. The trade surplus has been created by export enhancement and import contraction, the Ambassador said. The value added sectors were the main drivers of this growth, he added. Moreover, Italian imports from non EU countries declined 14 percent. Pakistan posts record trade surplus and export growth in the COVID-19 hit Italian market, he said. The Ambassador said that Italy has been among the first countries in Europe that were severely hit by the pandemic. Italian GDP fell as low as 9.6 percent in 2020, which is the highest fall since World War-II, he informed. However, despite these difficult conditions, Pakistan has not only recovered from the pandemic led export challenges but it has registered impressive growth of 9.1 percent in FY 2020-21. While responding to a question, the Ambassador stated that despite the Indian false claim over Basmati`s exclusive Geographical Indication (GI) rights in the EU and Italian market, Pakistan maintained its position as market leader in rice with 37.4 percent share whereas India supplied only 12 percent of the total imported rice in Italy. He informed that Italy hosts the largest Pakistani diaspora in the EU countries. In FY 2020-21, workers remittances from Italy reached $601 million which is an all-time high figure, he added. He said it is 66 percent higher if compared with the annual figure of FY 2019-20 that was $ 369 million. It has made Italy, Pakistan`s 7th largest destination for workers remittance globally and No.1 from the EU. He expected this growth streak to be continued in the FY 2021-22.
Source: Dunya News
Asia’s factories hit a rough patch in July as rising input costs and a new wave of coronavirus infections overshadowed solid global demand, highlighting the fragile nature of the region’s recovery. Manufacturing activity rose in export powerhouses Japan and South Korea, though firms suffered from supply chain disruptions and raw material shortages that pushed up costs. China’s factory activity growth slipped sharply in July as demand contracted for the first time in over a year, a private survey showed, broadly aligning with an official survey released on Saturday showing a slowdown in activity. Indonesia, Vietnam and Malaysia saw factory activity shrink in July due to a resurgence in infections and stricter COVID-19 restrictions, according to private surveys. The surveys highlight the divergence emerging across the global economy on the pace of recovery from pandemic-induced strains, which led the International Monetary Fund to downgrade this year’s growth forecast for emerging Asia. “Anecdotal evidence suggested a resurgence in COVID-19 cases across Asia and ongoing supply chain disruption had led to demand easing in domestic and external markets,” said Usamah Bhatti, an economist at IHS Markit. China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 50.3 in July from 51.3 in June, marking the lowest level in 15 months, as rising costs clouded the outlook for the world’s manufacturing hub. The final au Jibun Bank Japan PMI rose to 53.0 in July from 52.4 in the previous month, though manufacturers saw input prices rise at the fastest pace since 2008. Japan also faces a surge in Delta variant cases that forced the government to expand state of emergency curbs to wider areas through Aug. 31, casting a shadow over the Olympic Games and dashing hopes for a sharp rebound in July-September growth. South Korea’s PMI stood at 53.0 in July, holding above the 50 mark indicating an expansion in activity for the 10th straight month. But a sub-index on input prices rose at the second highest on record in a sign of the strain firms are feeling from rising raw material costs. Underscoring the pandemic’s strain on emerging Asia, Indonesia’s PMI plunged to 40.1 in July from 53.5 in June. Manufacturing activity also shrank in Vietnam and Malaysia, the PMI July surveys showed. Once seen as a driver of global growth, Asian’s emerging economies are lagging advanced economies in recovering from the pandemic’s pain as delays in vaccine rollouts hurt domestic demand and countries reliant on tourism.
Source: Reuters
CPEC is not just about China or Pakistan Bangladesh has ensured its remarkable achievements by expanding its textile and garment industry. Its apparel sector is booming day by day. The country’s main export is garments. So it is easy to say that Bangladesh needs cotton. But the production of cotton is low in Bangladesh. To fulfill the demand, Bangladesh imports cotton. On the other hand, Pakistan and Central Asian states are the main source of cotton in South Asia and Central Asia. However, Bangladesh is the overall top tenth export market of Pakistani products as fabrics, cotton, plastic, leather, fruits, dates, which are the products exported to Bangladesh. Jute and medicines are among the other products imported for the Pakistani market. But there are no direct shipping lines between Pakistan and Bangladesh to import and export easily. Business is affected because of the lack of a direct connection, which causes late consignments, and other hurdles for importers and exporters. It is very pertinent to mention that Bangladesh has made a tremendous effort to boost its economy in the past few years. Pakistan and Bangladesh have the potential to work together to boost their business and connectivity ties. Everyone is dependent on everyone in this globalized world. States are more connected regionally and globally now. Regional connectivity is needed to bolster the development. China-Pakistan Economic Corridor is one of the regional connectivity projects in Asia. It is a Project under the China -funded ‘Belt and Road Initiative’ project. Eighty percent of the Bangladeshi population is youth and they are willing to be employed by the business community. We need to help the youth on both sides to connect not only nationally but regionally and globally. So, Bangladesh should utilize the CPEC connectivity project to maximize its own business interest. There is no alternative path without connectivity, in the globalized world. Bangladesh and Pakistan both have already joined in the project. Chinese President Xi Jinping visited Bangladesh in 2016. He declared to invest a huge amount of dollars in Bangladesh under the Project. Bangladesh and China signed 27 agreements worth billions of dollars during his visit to Bangladesh. Bangladesh joined the BRI in 2017 officially. That was the right decision of PM Sheikh Hasina Wazed. China and Bangladesh vowed to deepen their BRI cooperation during the visit of PM Sheikh Hasina to Beijing in 2019. The Chinese government has already granted duty-free access to 97 percent of Bangladeshi products to its market. Bangladesh-China bilateral trade is growing day by day. China is an important source of import for Bangladesh. China has made significant investment in the infrastructural development of Bangladesh. One of the most strategically important investments is in Payra port of Bangladesh. China has financed and constructed the Payra Deep Sea Port project estimated to cost between $11 billion and $15 billion. The port is the third-largest port in the country and started operating in 2016. If this port could be connected with Gwadar port via Hambantota port, Bangladesh would benefit ultimately. Now another opportunity is awaiting Bangladesh. CPEC is going to create some benefits for the South Asian, Central Asian and Middle Eastern regional countries. Bangladesh can and should exploit the connectivity project for its own interest. New routes will be available now for Bangladesh to reach Pakistan, such as through China. These routes must be utilized for increasing bilateral trade. In 2020, the volume of bilateral trade was $644 million, which was very little considering the market and opportunities. The good news is that the volume of trade has increased significantly in 2021, as a rise in trade between Pakistan and Bangladesh has been reported. Bangladesh and Pakistan are both developing countries, faced with similar kind of conditions, thus, both countries should take measures and collaborate in enhancing their bilateral trade ties. Bangladesh Payra, Chattogram (Chittagong) and Mongla ports can be connected with Gwadar port via Sri Lanka’s Hambantota port. Then Bangladesh will be able to utilize the China-run CPEC connectivity project in Pakistan. Bangladesh can easily import and export the products from Central China, Pakistan, Central Asian states, Russia, Iran. We know that Central Asian states would like to connect with Pakistan now through this project. The Peshawar-Kabul-Kandahar Railway connectivity, Turkey-Iran-AfghanistanPakistan connectivity, Bangladesh-Sri Lanka connectivity would be boosted up also. Connectivity is the synonym of development. So there is no alternative in this modern globalization era. We also know the current’ Afghan Peace Process’. Bangladesh can play an important role to develop the infrastructure, and many other sectors in Afghanistan are utilizing these regional connectivities. Bangladesh, Pakistan and Afghanistan share a common platform like SAARC. Bangladesh and Afghanistan both would be benefitted by bilateral trade if the political situation is stagnant in the war ravaged country. Therefore, there are some opportunities for Bangladesh in case of utilization of CPEC project. Bangladeshi businesses may explore opportunities being offered by CPEC which can also be used as a transport link if Bangladesh is sourcing its imports from Western and Central China. There may be some problems between Pakistan and Bangladesh too. Pakistan and Bangladesh have become very serious regarding building relations with each other in the last few years. We have found great fabric and yarn manufacturers from Pakistan. Bangladesh has a very small window of opportunity available to it. Although there are issues between Pakistan and Bangladesh, the businessmen on both sides understand the importance of bilateral trade. CPEC holds great importance and this opportunity will bring prosperity to Bangladesh as well because 30-40 percent of its imports are coming from China. Using CPEC as a channel, Pakistan should promote it to Bangladeshi businessmen. Pakistan exports potatoes to Russia and imports wheat from it. Bangladesh also needs to export potatoes to Russia and import wheat from it. Bangladesh can utilize this route easily taking the help of Pakistani businessmen. Although Bangladesh and Pakistan compete with each other in this sector, bilateral efforts would pave the way to strengthen the business ties. In the onion crisis in 2019 in Bangladesh when India stopped exporting onions to Bangladesh, Bangladesh imported onions from Pakistan. Therefore, Bangladeshis understood the significance of the route in time of emergency. Eighty percent of the Bangladeshi population is youth and they are willing to be employed by the business community. We need to help the youth on both sides to connect not only nationally but regionally and globally. So, Bangladesh should utilize the CPEC connectivity project to maximize its own business interest. There is no alternative path without connectivity, in the globalized world.
Source: Pakistan Today
