While the impressive growth in July was aided by a favourable base effect, what lends credence to a trade recovery is the fact that goods exports have now crossed the pre-Covid (same months in 2019) level for five straight months. Defying Covid blues, merchandise exports jumped 48% in July from a year before and 34% from the pre-pandemic level (July 2019), thanks to a robust demand from key markets and a rise in global commodity prices. At $46.4 billion, imports, too, rose 59% year-on-year in July and 15% from the same month in 2019, showed the preliminary data released by the commerce ministry on Monday. While the impressive growth in July was aided by a favourable base effect, what lends credence to a trade recovery is the fact that goods exports have now crossed the pre-Covid (same months in 2019) level for five straight months. Exports in July stood at $35.2 billion, against $23.8 billion a year earlier and $26.2 billion in the same month of 2019. With this, outbound shipments of $130.6 billion in the first four months of this fiscal recorded a rise of 74% y-o-y and 22% from the same period in 2019. Still, thanks to elevated imports in July, trade deficit hit a three-month high of $11.2 billion. Enthused by the rise, the government believes the high export target of $400 billion for FY22 will be met. Already, almost 33% of the annual target has been met in the first four month. Last fiscal, the country could ship out goods worth only $291 billion due to the Covid outbreak. Importantly, core exports (excluding petroleum and gems and jewellery) climbed up by 27% in July from a year before and 32% from the June 2019 level. Core imports rose 35% y-o-y but declined marginally from the level witnessed in July 2019. This suggests trade growth in July was impressive, even excluding the impact of costlier oil. FE has reported that the government now intends to set am ambitious export target of over $1 trillion by FY26 under the new foreign trade policy, to be effective from October 1. However, this would mean exports would have to rise at a compounded annual growth rate of 15% until FY26, against just 5% in the five years through FY20 (pre-pandemic). Of course, export growth had remained subdued even before the pandemic – outbound shipments rose about 9% in 2018-19 but again shrank by 5% in 2019-20. So, only a sustained uptick over the next few years would help India recapture the lost heights. Data showed that exports of petroleum products surged by 216% on year in July, while those of gem and jewellery jumped by 130% and engineering goods aby 42%. Similarly, imports of pearls, precious and semi-precious stones climbed by 179%, followed by gold (136%) and petroleum (97%). Icra chief economist Aditi Nayar said: “With a robust services trade surplus in June 2021, in addition to the state lockdown-compressed merchandise trade deficit, we expect a small current account surplus of $2-3 billion for the first quarter. Overall, we expect the current account deficit to be limited to $20-25 billion or 0.7% of GDP in FY22.” A Sakthivel, president of the exporters’ body FIEO, said while the government has announced a slew of measures to support exports, “the need of the hour is to soon notify the RoDTEP rates to remove uncertainty from the minds of the trade and industry”. Also, the government should address some of the key issues, such as extending prioritysector status to exports, release of the necessary funds for clearing MEIS dues and clarity on SEIS benefits. Resolving issues invlving the so-called risky exporters, augmenting the flow of empty containers and establishing a regulatory authority to oversee freight hike are crucial as well, Sakthivel said.
Source: Financial Express
PMI: Manufacturing activity hits three-month high in July
Output, new orders, exports, quantity of purchases and input stocks expanded in July, while a marginal increase in employment ended a 15-month sequence of job shedding. India’s manufacturing activity grew at its fastest pace in three months in July, reversing a contraction in June, as states relaxed localised curbs imposed in the wake of the second Covid wave. Output, new orders, exports, quantity of purchases and input stocks expanded in July, while a marginal increase in employment ended a 15-month sequence of job shedding. The Nikkei Manufacturing purchasing managers’ index (PMI) rose to 55.3 in July from 48.1 in the previous month. An index reading of 50 or above suggests expansion and below it points at contraction. The PMI for manufacturing had shrunk for the first time in 11 months in June. Factory orders rose amid improved demand and the upturn was sharp and compared with a marked decline in June. “Strengthening international demand contributed to the uptick in total order books. New export orders expanded markedly in July, following a moderate contraction in June,” data analytics firm IHS Markit, which releases the PMI data, said in a statement. Meanwhile, there was a sharp increase in input costs. “Output charges rose only slightly, however, as several companies absorbed additional cost burdens amid efforts to boost sales,” it said. Companies also purchased additional inputs for use in the production process. The overall rate of buying activity growth was solid by historical standards. Goods producers saw a rise in their stocks of purchases during July, which followed a decline in June. Once again, raw material scarcity was cited as a key factor causing longer delivery times among suppliers. Pollyanna De Lima, economics, associate director at IHS Markit said: “Output rose at a robust pace, with over one-third of companies noting a monthly expansion in production, amid a rebound in new business and the easing of some local Covid-19 restrictions. Should the pandemic continue to recede, we expect a 9.7% annual increase in industrial production for calendar year 2021.” De Lima said although employment went up marginally in July, it’s too early to say that such trend will be sustained, given that firms’ cost burdens continue to rise and signs of spare capacity still remain evident. “Policymakers will welcome evidence that inflationary pressures are starting to abate…Hence, we expect the RBI to keep interest rates unchanged in its August meeting as it continues to support growth,” she said.
Source: Financial Express
Status Quo – yes. When the Monetary Policy Committee (MPC) meets for the third bimonthly policy of FY2021-22, I expect the MPC will keep key policy rates unchanged. Ever since COVID-19 hit, the central bank’s message has been clear —the focus is on reviving growth first and foremost. It has maintained a low rates-easy money policy to stimulate consumption, investment and propel economic growth. As it seeks to navigate the economy towards a more sustained pace of growth, the MPC will keep a close watch on key macroeconomic indicators and high-frequency data, in addition to the possibility of a third wave. The US Federal Reserve has indicated that there will be no immediate change in its monetary policy stance despite higher inflation levels, as it believes that inflation is transitory and that the US economy needs further support to grow.
Domestic economy: Inflation, monsoon, growth
In India, the RBI has followed almost a similar path. Liquidity is abundant with easy money supply conditions, and rates have been kept low, supported by an accommodative policy stance. The key question in India as well is on inflation. For the second month in a row, CPI Inflation came in at above 6%. Led by supply constraints rather than demandside factors, retail inflation was recorded at 6.26% in June, moderating marginally from 6.30% of May, but well above the MPC’s threshold level. The RBI also believes that inflation is transitory and is expected to trend downwards during the course of this fiscal. This gives it the much-needed space to continue to focus on supporting and stimulating growth for the time being.As every year, the progress of the monsoon season plays a significant role in India’s economic decision making. The season has been normal so far and this will have a positive impact on food inflation and the rural economy.The fiscal began with a muted April and May on consumption, growth and demand for credit due to Covid 2.0. The second half of June saw a good recovery going by high-frequency data and July was better. Worries of a third wave is keeping discretionary spending relatively slower and thus a V-shaped recovery like last year is not yet evident. In the banking system, deposit growth continues to be higher than credit growth. Thus, the biggest question that will concern the MPC is the sustainability of economic growth. In its June policy, the RBI projected the real GDP growth at 9.5% in 2021-22. The MPC may retain its GDP projection in the August policy. It will be important to see if it changes the inflation projections and the commentary around that. While economic activity continues to recover from the lows of April and May, it is important that there is a sustained pick-up in growth.
Watch out for signals from the MPC
I expect that the MPC will maintain a status quo in this policy on both fronts – rates and its stance. What will be important to gauge this time around is the tone and tenor of its discussions that will hold cues for future action.And hence, while this will be a no-action policy, it is these signals that could give us an indication on the path forward. Inflation is likely to be above the earlier estimates put out and thus the MPC’s narrative on this will be important. Suffice to say the tightrope walk between price stability and economic growth will continue. While data – both global and local trends – will be watched closely, I do not expect any change in stance till December at least, if not till the end of the fiscal.In conclusion, the global economy, domestic inflation and the pace of economic growth will likely keep a status quo on rates with an accommodative stance.
Source: Financial Express
The RBI said monthly data on services are provisional and are likely to undergo revision when the Balance of Payments (BoP) data are released on a quarterly basis. India's services exports increased 24.1 per cent month-on-month to USD 19.72 billion in June 2021, the Reserve Bank ofIndia said on Monday. The exports stood at USD 17.35 billion in May and USD 17.54 billion in April. The RBI further said imports in June were valued at USD 11.14 billion, up 24.8 per cent on sequential basis. The imports stood at USD 10.23 billion in May and USD 9.89 billion in the previous month.
Source: Economic Times
"Whenever any violation of CSR provisions is reported, action against such non-compliant companies are initiated as per provisions of the Act after due examination of records and following due process of law. All CSR related defaults are compoundable. Prosecution proceedings have been sanctioned in 366 cases related to violation of CSR provisions under the companies law, the government said on Monday. Under the Companies Act, 2013, certain class of profitable entities is required to shell out at least two per cent of their three-year average annual net profit towards CSR (Corporate Social Responsibility) activities. As part of amendments to the Act, non-compliance with CSR provisions has been made "civil wrong" with effect from January 22, 2021. Whenever any violation of CSR provisions is reported, action against such non-compliant companies are initiated as per provisions of the Act after due examination of records and following due process of law. All CSR related defaults are compoundable. "So far, sanction for prosecution has been accorded in 366 cases. Of these, 148 applications for compounding have been made and 75 cases have been compounded," Nirmala Sitharaman, who is in charge of corporate affairs and finance ministries, told Lok Sabha on Monday. Generally, compoundable offences are those which can be settled by paying a certain amount of money. In a written reply, she also said the CSR architecture is disclosurebased and CSR-mandated companies are required to file details of the activities annually in the MCA 21 registry. An amount of Rs 21,231.15 crore was spent by companies towards CSR activities in 2019-20. The minister also said CSR provisions mentioned under Section 135 of the Companies Act, 2013 are not applicable to public sector banks. "As per the input provided by the Department of Financial Services, Public Sector Banks are established under the State Bank ofIndia Act, 1955 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/80 and are not companies incorporated under the Companies Act, 2013 or under any previous company law," she added.
Source: Economic Times
The Western Railway (WR) will develop an integrated freight network at the city and nearby smaller railway stations. It is targeting the city’s textile industry for goods transport business for which facilities will be developed at these smaller railway stations. The announcement was made by GVL Satya Kumar, divisional railway manager, WR on Monday. Kumar was in the city to inspect the development work at the city’s railway station. It was his first visit to Surat railway station since Surat MP Darshana Jardosh became union minister of state for railways. “We have handled around 70,000 tonne of textile goods from the city. However, railways are getting around 5% of total goods transported,” said Kumar. We are working on increasing our business in transporting textile goods from Surat. Railways will improve freight facilities at smaller railway stations like Gangadhara, Udhna, Bardoli and Chalthan for that purpose,” Kumar added. Railway authorities are planning to get the goods delivered at these stations where textile production clusters are currently located. This will also reduce movement of transport vehicles within the city limits, explained railway officials. “Railway transport has always been a beneficial option in terms of cost, but we have to depend upon road transport for delivery at destinations. Railway can take goods up to a railway station, mostly a city, but there is no facility for transporting the material from railway station in a city to nearby town,” said Manoj Agarwal, president, Federation Of Surat Textile Traders Association (FOSTTA). In a recent meeting with railway officials, FOSTTA discussed these transportation issues and requested the railway to provide last mile connectivity. Meanwhile, to curb the smuggling of liquor in trains the railways will strengthen is CCTV network in and around the Surat railway station. Currently, the railway station has a network of 40 CCTV cameras. Railway officials said that 86 more CCTV cameras will be added by the end of August.
Source: Times of India
As per the National Policy for Skill Development and Entrepreneurship, 2015 India has a target to train 402.87 million by 2022. This overall targets includes 104.62 million new entrants to existing workforce in the country who need to be skilled to meet industry requirement. In addition 298.25 million of existing workforce need to be reskilled/upskilled. This target is an estimation based on NSSO and CENSUS data, as per the methodology mentioned in the ‘National Policy for Skill Development and Entrepreneurship 2015’. NSS 66th and NSS 68th round data were used to calculate the existing workforce in Indian economy and workforce with formal vocation training within it. Further, Government has identified 112 Aspirational Districts where targeted development initiatives are being implemented to provide opportunities for people in these districts that have trailed in development journey of the country. The information was given by the Union Minister of Skill Development and Entrepreneurship, Shri Dharmendra Pradhan in a written reply in the Lok Sabha today.
Source: PIB
Already known for its religious importance, Gaya will soon emerge as a textile hub with a cargo terminal to ensure export and import of the products. “A textile cluster for readymade garments is being developed at a weir house in Durga Bari locality of the town. After selection of the weir house for textile cluster, written communication has been made to the building construction department for renovation of the weir house. Space will be made available to the entrepreneurs at the weir house at nominal rates. Readymade garments would be manufactured locally and the target is to provide jobs to at least 100 migrant workers,” Gaya district industry centre (DIC) general manager Birendra Singh told this newspaper on Monday. The applicants under SC/ST entrepreneurship scheme will be imparted training through rural self-employment training institute (RSETI) at Delha in the town, he said. “Apart from the already operational CM SC/ST entrepreneurship scheme, applications are pouring in for the newly launched women and the youth entrepreneurship scheme. The portal will remain open for the next one month for the applications. The list of 70 candidates selected under the scheme has been sent to the RSETI,” Singh added. District magistrate Abhishek Singh has instructed the banks to improve their creditdeposit (CD) ratio. Whereas the state has an average CD ratio of 44.26%, it is 42% in Gaya. In the annual credit plan, banks have achieved 72.1% in different sectors.
Source: Times of India
Various independent estimates of India’s gross domestic product (GDP) growth in fiscal 2021-22 range between 8.7 per cent and 9.6 per cent, which are below the Reserve Bank of India’s projection of 10.5 per cent and the estimate of 11 per cent by chief economic adviser (CEA) KV Subramanian, who does not foresee a very high impact of the pandemic’s second wave on the economy. While Confederation of Indian Industry president TV Narendran pegged India’s GDP growth rate for this fiscal at 9.5 per cent, Motilal Oswal Financial Services projected a real GDP growth of 8.7 per cent, down from 11.1 per cent it had forecast earlier. The later, however, revised up the forecast for fiscal 2022-23 from 4 per cent to 5.4 per cent. Given the speed and scale of the second wave, the GDP growth estimated earlier by India Ratings and Research (Ind-Ra) at 10.1 per cent for this fiscal is unlikely to hold. Ind-Ra now expects the figure to come in at 9.6 per cent (base case). This, however, depends on India vaccinating its entire adult population by December end. According to rating agency ICRA, economic recovery in the country gained momentum after localised lockdowns were lifted following the second wave, but is 'incomplete'. Care Ratings projected the growth at 8.8-9 per cent this fiscal, driven by agriculture and industry sectors. The outlook for the economy on almost all counts in this fiscal would look seemingly better than the last on account of the negative base effect, it said. The country's economy had contracted by 7.3 per cent in the last fiscal. The services sector cannot reach its potential even at 8.2 per cent growth as the second lockdown has affected sectors like hotels and restaurants, tourism, retail malls and entertainment in particular, Care Ratings further said. The International Monetary Fund (IMF) cut India's GDP growth to 9.5 per cent for this fiscal from its previous estimate of 12.5 per cent, citing the impact of the pandemic’s second wave. For the next fiscal, however, IMF has raised the growth projection to 8.5 per cent from 6.9 per cent. RBI governor Shaktikanta Das said there was no reason to revise the central bank’s projection downwards. The Economic Survey 2020-21, released in January this year, had said GDP growth will be supported by supply-side push from reforms and easing of regulations, push for infrastructural investments, boost to manufacturing sector through the production-linked incentive schemes, recovery of pent-up demand, increase in discretionary consumption subsequent to rollout of vaccines and pick up in credit given adequate liquidity and low interest rates.
Source: Fibre 2 Fashion
It's a digital voucher developed by NPCI that will be transferred directly to mobile phone as an SMS string or QR code, redeemable at merchant points delivering services related to the benefit scheme Prime Minister Narendra Modi on Monday launched a digital direct benefit transfer (DBT) platform called e-RUPI, which aims at making sure that the money transferred by the user, in this case, the government, is used exactly for the same purpose as it is intended to be. Prime Minister Modi termed the e-RUPI as a “big reform”, in line with the launch of BHIM-UPI payment system in December 2016. The UPI system has indeed changed the payment landscape in India and has become the preferred mode of payment in many cases. In July alone, UPI registered 3 billion transactions, worth Rs 6 trillion-plus. What is e-RUPI? It is a one-time digital voucher developed by National Payments Corporation of India (NPCI) that will be transferred directly to the mobile phone as an SMS string or QR code which can be redeemed at particular merchant points that are specifically focused on delivering services related to the benefit scheme for which the money has been transferred. To start with, e-RUPI has been launched to transfer benefits schemes of the Ministry of Health. Instead of crediting the DBT amount directly to the beneficiary bank account, through the e-RUPI, an equivalent amount voucher will be sent directly to the beneficiary’s mobile phone in the form of an SMS string, or a QR code. The beneficiary will have to show the SMS or QR code to specific centres where it can be redeemed with a code delivered to the mobile number where the SMS or QR code had come. It will be targeted for a specific purpose and cannot be used for any other thing. For example, if the e-RUPI has been sent to the beneficiary to avail vaccination, it can be used at the vaccination centre only to get the vaccine. This would ensure that the “money is utilised for the same purpose it is given for,” PM Modi said while inaugurating the facility. Earlier, as the benefit amount used to get directly credited to the account of the beneficiary, it was possible to withdraw and use it for, say, consumption purposes. With the new transfer scheme, that can be plugged. However, it is not clear yet what happens to those beneficiaries who do not have even a basic mobile phone. In such cases, DBT scheme would likely continue for some more time, said a banker. PM Modi said going forward, e-RUPI will be used for other DBT schemes of the government as well. Currently, there are 315 DBT schemes run by 54 ministries of the government. However, not all schemes are for everyone. Data from the National Informatics Centre (NIC) show till date, 7.32 trillion transactions have been done, transferring about Rs 1.42 trillion to the beneficiaries. While banks and payments systems have a huge role to play in this ecosystem, hospitals, and corporate entities have also shown interest in adopting this technology, the Prime Minister said. "State governments must also use the platform for their welfare schemes in order to develop an honest eco-system,” he said. However, the e-RUPI can be used by even private corporate entities as part of their corporate social responsibility. The Prime Minister gave an example of a corporate sponsoring vaccination of 100 people in a private hospital. In that case, the beneficiary will get the vaccine free from the hospital, but only after showing the e-RUPI SMS or QR code. The DBT ensures that money reach the intended beneficiary and doesn’t end up in the wrong hands, PM Modi said, which so far may have saved at least Rs 1.75 trillion. With DBT, more than 90 crore citizens have benefitted, including through schemes such as PM Kisan Samman Nidhi, public distribution services, LPG gas subsidy etc. “India has shown the world that in adopting technology and leverage it for connecting lives, the country is not behind anyone. In digital innovation, service delivery using technology, India is providing global leadership,” PM Modi said. “India’s digital adoption has been acknowledged by the world. So much of technology solutions are not present even in large developed countries,” PM Modi said. He highlighted fastags for vehicles in tolls, digilocker facility for carrying certificates and documents digitally, 59 minutes loans for entrepreneurs in micro, small and medium enterprises as what has been made possible through technology adoption in the country. BHIM UPI not only made it easy for businesses to transact money but also empowered the poor in carrying out their businesses and transactions easily, he said. “Rupay card is India’s pride,” he said, adding other countries have shown interest in India’s payment ecosystem, and actively seeking help. In a bid to internationalise India’s homegrown payment system, Rupay card has been launched in Singapore, and Bhutan to start with. In total, 66 crore Rupay cards have been issued so far, outgrowing traditional cards providers in India.
Source: Business Standard
PHD Chamber of Commerce and Industry President Sanjay Aggarwal said that the move is a significant step to enhance the digitization process of the country. The launch of e-RUPI, a person- and purpose-specific digital payment solution, by the government is expected to completely negate any pilferage and will ensure full benefit to intended beneficiaries, India Inc said on Monday. Prime Minister Narendra Modi has launched e-RUPI, which is aimed at improving transparency and targeted delivery of benefits. The launch of e-RUPI, a person- and purpose-specific digital payment solution, by the government is expected to completely negate any pilferage and will ensure full benefit to intended beneficiaries, India Inc said on Monday. Prime Minister Narendra Modi has launched e-RUPI, which is aimed at improving transparency and targeted delivery of benefits Sharing similar views, CII President T V Narendran said that through this payment mechanism, the government can extend monetary support to citizens without involvement of intermediaries. The voucher system will enable all beneficiaries, including feature phone-users, to benefit through this mechanism and it will also be an excellent tool for the corporates, through which they can extend employee and community welfare schemes, he said. Sanjiv Bajaj, President-designate, CII, said, "This is expected to completely negate any pilferage and will ensure 100 per cent benefit to the intended beneficiaries. This mechanism is expected to make DBT (direct benefit transfer) more efficient and has all the ingredients to ensure the spread of financial inclusion by the government but also by corporates to extend employee and community welfare schemes." Chandrajit Banerjee, Director General, CII, said that the launch of e-RUPI will ensure that benefits reach the intended beneficiaries. Ficci said that with this launch, the government will now be able to connect sponsors of the services with the beneficiaries and service providers in a digital manner and without any physical interface. "The e-RUPI system will not only ensure that there are no leakages in the delivery of government services but also offer a much-needed ease and convenience to the people who are the recipient of such services," it added.
Source: Economic Times
Prime Minister Imran Khan has approved $ 38.7 to $ 40 billion export target of goods and services for financial year 2021-22. The export target was finalized at meeting held in the Prime Minister office and attended by all the concerned stakeholders. Talking to Business Recorder, Prime Minister’s Advisor on Commerce and Investment, Abdul Razak Dawood said that export target for textiles has been set at $ 20 billion to $ 21 billion, non-textiles $ 11.5 billion, totalling $ 32.5 billion. The share of services has been projected at $ 7.5 billion. Commerce Advisor who was scheduled to announce the export target at a press conference with Information Minister Fawad Chaudhary addressed it with SAPM on Political Affairs Dr Shahbaz Gill instead. Gill informed the media that a delegation of exporters held a meeting with the Prime Minister on Monday, adding there is export potential in many sectors but exports still are negligible and the issues of these sectors were discussed during the meeting. He said big targets have been set for the current fiscal year, adding that Prime Minister will hold a review meeting every month and the Finance Minister will hold meetings with exporters after every two weeks. Commerce Advisor informed the media that Pakistan’s exports reached $ 25.3 billion in 2020-21. He said exports in July stood at $ 2.3 billion and Pakistan’s focus is now on ‘Make in Pakistan’. He contended that Pakistan’s exchange rate is realistic, adding that the government has paid the exporters their arrears. He said IT exports have shown a growth of 47 per cent in 2020-21. He maintained that export of goods will be taken up to $ 31.2 billion. He said export target for 2021-22 will be $ 38.7 billion, adding that the country has a capacity to reach $ 40 billion exports. To a question, he said, motorcycle production was at a record high in FY 2020-21, adding export orders of 10,000 motorcycles have already been received. Razak Dawood said Aamir Allawala has established a mobile phone factory in Karachi, and local manufacturing of mobiles has already commenced. He stated that dependency on textile exports will decline in the next five years as exports in other sectors will start. Answering a question, he said, textile exports will remain between $ 20 and $ 21 billion in the current fiscal. He further stated that prices of gas and electricity have been kept at par with those prevalent in competitor countries. Razak Dawood said that Samsung did not come to Pakistan even though he invited them twice; however, now the company has decided to set up its plant in Pakistan. He said whatever measures were suggested in the STFP 2020-21, Commerce Ministry has already implemented them. To a question SAPM Shahbaz Gill said that sugar price has increased by 56 per globally, adding that the government is fighting the sugar cartel. He said revenue on sugar has doubled in 2020-21 despite lower production of the commodity and cotton production has declined due to the sugar mafia.
Source: Brecorder
Bangladesh is the only country which has been able to ride over the pandemic better than any other nation, says IFFRAS, an international think tank headquartered in Toronto, Canada. The country, which former US National Security Adviser Henry Kissinger acerbically referred to as basket case in 1972, has in the last 50 years since its independence performed better than Pakistan, it said. Bangladesh's growth rate was way above Pakistan, even before the pandemic; in 2018-19 it was 7.8% compared to Pakistan’s 5.8%, said IFFRAS (International Forum for Rights and Security). IFFRAS, in its article titled "Bangladesh and Pakistan - Formerly one Nation, today a World Apart" described how Bangladesh became a "miracle story" and Pakistan a "disaster tale". It mentioned in the Covid-19 pandemic and amid major changes unseen in a century, the global economy is mired in its deepest recession since World War II and multilateralism and the international order are confronted with unprecedented challenges, which has created considerable obstacles to South Asian development in the economic and other fields. Bangladesh and Pakistan are a world apart today because they perceive their national interest very differently, IFFRAS mentioned. Bangladesh sees its future in human development and economic growth. Goal posts are set at increasing exports, reducing unemployment, improving health, reducing dependence upon loans and aid, and further extending micro credit, it said. For Pakistan, according to IFFRAS, human development comes a distant second. "The bulk of national energies remain focused upon check-mating India and nurturing extra state actors in the 1990s." It said Bangladesh’s economic miracle also benefitted from separation of religion from state and their leaders’ single-minded focus on Bangladesh. Bangladesh’s foreign exchange reserves in May 2021 hit a record $45.10 billion amid the Covid-19 pandemic, which is more than double compared to Pakistan’s17.1 USD bn in June 2021. The real marvel lies in the fact that even in FY '20, when economies around the world contracted as a result of pandemic lockdowns, Bangladesh managed a 5.24% growth, (IFFRAS) said. In 2021, Bangladesh’s GDP per capita had grown by 9% rising to $2,227. Pakistan’s per capita income, meanwhile, is $1,543. In 1971, Pakistan was 70% richer than Bangladesh; today, Bangladesh is 45% richer than Pakistan. With macro-economic stability as its cornerstone, Bangladesh’s economy has increased by 271 times over 50 years, IFFRAS said. Bangladesh’s successful journey is a good example and in just two decades, Bangladesh has overtaken Pakistan on key economic indicators. Over the past 20 years, Bangladesh’s GDP per-capita increased 500 percent, two and a half times that of Pakistan, said IFFRAS. There are thousands of garment factories in Bangladesh, a country which does not grow cotton. But by importing cotton worth a couple of hundred million dollars, Bangladeshi garments factories are exporting it in the form of readymade garments worth $35 billion, it said. On the contrary, Pakistan – despite being a cotton-growing country – has failed to increase its exports of garments and textile products beyond $10 billion, said IFFRAS adding that even worse, Pakistan is now importing cotton. In fact, a lack of innovation and commitment on the part of the authorities in Pakistan because of its feudal and tribal structures, it is unable to make use of its agricultural resources, particularly cotton, to increase its exports of textiles and textile made-ups, IFFRAS mentioned.
Source: UNB
fibre Trace, Singapore-based supply chain traceability solution for the textile industry, has been awarded a European patent issued for ‘Photon Marker System in Fiber Material’. The company had received the US patent for the same in April 2019. FiberTrace combines physical and digital traceability with the power of authentication to drive sustainability. Receiving the European patent is an opportunity for FibreTrace to accelerate traceability efforts across the global fashion and textiles industry and ensure brands are being held accountable for their sustainability claims, the company said in a media release. FibreTrace offers reliable and trusted data that allows both brands and consumers to understand the true social and environmental impact of their products as it moves throughout the global supply chain. “It’s encouraging to see the rapid pace at which the global fashion and interiors industries are moving towards complete transparent and traceable solutions. Finalising the European Patent for FibreTrace is recognition for the hard work, research and development of our team which provides brands and manufacturers full confidence in the origin of fibre and integrity in their claims,” said Danielle Statham, co-founder of FibreTrace.
Source: Fibre2 fashion
Growth in Brazil’s manufacturing sector picked up in July to its fastest rate in five months, a survey of purchasing managers’ activity showed on Monday, led by the strongest new orders this year and a record rate of input buying across the sector. Employment growth slowed, however, and input prices dipped to their lowest in a year although they remained strong by historical standards, IHS Markit data showed. IHS Markit’s headline purchasing managers index (PMI) rose to 56.7 in July from 56.4 in June, the highest level since February. A reading above 50.0 marks expansion, while a reading below signifies contraction. The series was launched in 2006. “Manufacturers enjoyed a robust rise in sales during July, which supported a quicker upturn in production. What’s more, demand strength and belief that (this) trend will be sustained encouraged firms to size up their inventories,” said Polyanna de Lima, economics associate director at IHS Markit. “Several companies indicated the scaling up of input purchasing to safeguard against stock shortages, but there remained concerns about difficulties in sourcing items such as chemicals, electronic components, metals, plastics and textile,” she said. According to IHS Markit, Brazilian manufacturers ramped up the pace of input and materials purchases in July to the fastest since the data series began in February, 2006. Expectations of strong demand and growing COVID-19 vaccine coverage point to an encouraging outlook for the second half of the year, IHS Markit said. Brazil’s Economy Ministry recently raised its 2021 economic growth forecast to 5.3% from 3.5%, and the central bank expects the industrial sector to expand by 6.6%. (Reporting by Jamie McGeever Editing by Paul Simao)
Source: Reuters
Garment exports from Vietnam have narrowly overtaken Bangladesh in 2020 according to new data from the World Trade Organisation's Statistical Review. According to the WTO data, ready-made garment exports from Bangladesh came in at US$28bn while global garment exports from Vietnam stood at $29bn in 2020. It means Vietnam is the second-largest exporter of garments globally, with Bangladesh now third with an 6.4% and 6.3% share of the market respectively. Vietnam’s government is expected to take advantage of opportunities from Free Trade Agreements to find solutions to develop markets and remove barriers to enter new markets, as well as prioritise the implementation of export promotion activities and export markets likely to recover from the pandemic in the near term. China remains in pole position, despite a 7% decline in exports on a year-on-year basis at $142bn. It holds a 31.6% share of the market in 2020. Local publication Vinanet, citing data from the preliminary statistics of the General Department of Customs, says exports of textiles and garments for the first six months to June grew 16.2% on a year over year basis, with the US being the largest absorber of goods accounting for 49.5% of the country’s total export turnover.
Covid threatens supply
With Bangladesh and Vietnam among the largest suppliers of clothing to brands worldwide, concerns are growing about supply constraints as cases of Covid-19 surge in both locations, forcing factory shutdowns. At the end of July, the American Apparel & Footwear Association (AAFA) wrote to the Vietnamese Prime Minister urging Phạm Minh Chính to take several key emergency actions to help control the spread of Covid-19. Specifically, AAFA CEO Steve Lamar calls for the government of Vietnam to prioritise the distribution of vaccines to Vietnam’s apparel, footwear, and travel goods industries and urges collaboration with AAFA trade association counterparts – VITAS and LEFASO – to quickly develop and implement flexible and effective protocols to make sure these industries can safely produce and transport goods. The AAFA also penned a second letter to US President Joe Biden, urging him to send excess vaccines to apparel sourcing hotspots such as Bangladesh.
Source: Just-style
