The government is set to notify the new duty refund scheme for exporters — Refund of Duties and Taxes on Exported Products (RoDTEP) — this week, with a final clearance from commerce and industry minister Piyush Goyal expected in a day or two. The scheme, meant to replace World Trade Organization (WTO) noncompliant incentives, was implemented in January but exporters have been waiting to get their dues for taxes paid by them for the last eight months. A notification will partially end the agonising wait, which has increased their fund requirement as the Centre has held back their claims. While commerce secretary B V R Subrahmanyam had said that the scheme will be implemented, some paperwork is yet to be completed after the commerce and finance ministries agreed to widen the scope of the scheme to cover all products, which also required higher budgetary allocation. The two ministries had earlier agreed to increase the allocation from the originally allocated Rs 13,000 crore to Rs 17,000 crore. Last week, the government had notified the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, a similar mechanism, to allow textile exporters to get a rebate on central and state taxes till March 2024. According to industry estimates the government owes around Rs 8,000 crore to exporters in unpaid RoDTEP bills, with another Rs 3,500- 4,000 crore arrears on account of RoSCTL. Further, around Rs 16,000 crore of payments from the now defunct Merchandise Exports from India Scheme (MEIS) are due for April December 2020. So, exporters are demanding payments of close to Rs 28,000 crore just from these three schemes. Exporters have been complaining of the government sitting on tax refunds and arrears from earlier schemes such as Service Exports from India Scheme (SEIS) and MEIS that were abandoned after the US dragged India to the WTO, arguing that they were not compliant with global trade rules. Government sources said refunds could be handy at a time when costs such as those on fuel and freight have gone up due to global as well as domestic price dynamics.
Source: Times of India
Both nations mark important anniversaries this year, as they seek to further their centuries-old ties. ndia and the UAE, along with other countries, continue to fight the Covid-19 pandemic for a safer and healthier world. In these difficult times, the peoples of both countries have many reasons to cheer for the future. While India has begun celebrations for its 75th anniversary of independence, the UAE too has set plans in motion to celebrate the 50th anniversary of its foundation. In the coming year, India and the UAE will also celebrate 50 years of their diplomatic relations. While it was not planned this way, it is only fitting that Expo 2020 Dubai is being held during this momentous period. While the milestones fall within the span of a year, the foundation was laid much before the formation of both the UAE on December 2, 1971, and India’s independence on August 15, 1947. The centuries-old ties between the peoples of India and the UAE are rooted in trade and commerce. They began around the time of the Indus Valley Civilisation between 3300 BCE and 1300 BCE, when the two regions had a flourishing maritime trade, to the early 20th century, when Bombay (now Mumbai) used to be the biggest hub for pearl trade in the region. The currency of the two countries remained the same until 1973, when the Dirham replaced the Gulf Rupee in the UAE. India was one of the first countries to establish diplomatic relations with the UAE, in 1972, before opening its mission the following year. This shared journey of the peoples of both countries has flourished ever since. Although Indians have lived in the UAE from even before the era of the British Empire, their numbers increased after the UAE's formation. The real impetus came in the 1990s, at a time when Dubai was becoming a global hub for trade. The massive infrastructure boom in the emirate attracted talent from India. Currently, more than three million Indians have made the UAE their second home. The deep-rooted relationship has received new momentum under the leadership of Prime Minister Narendra Modi and Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces. During the past six years, the Indian Prime Minister has visited the UAE three times, most recently in August 2019. During the same period, Sheikh Mohamed visited India twice, including in January 2017, when bilateral relations were formally upgraded to a “Comprehensive Strategic Partnership”. While our peoples remain the backbone of this relationship, trade and commerce have been the engines of growth. Bilateral trade, which was limited to spices, dates, pearls and fisheries until the 1960s, has undergone a sea change. It has grown to $59 billion in 2019-20 from around $180 million in the 1970s. Trade is well diversified and includes petroleum products, precious metals, stones, minerals for jewellery, food items, textiles, engineering and machinery products, and chemicals. While trade has taken a hit during the past year due to pandemic-related lockdowns, bilateral cooperation has deepened in sectors as diverse as health care, agriculture products and investments. As Dubai is gearing up to host the Expo from October this year, the India Pavilion is all set to dazzle the world. A Dh250m ($68m) project, the pavilion will present an emerging India that is committed to the philosophy of “Together, We Prosper”. The tag line for our pavilion –” Openness, Growth, Opportunity” – is reflective of our country’s vision. The Indian Prime Minister has said: “The world's economic revival is invariably linked to the growth of India. The country is ready to do whatever it takes to further global good and prosperity. This is an India that is reforming, performing and transforming.” The pavilion will present to the world India’s diverse and composite cultural heritage, its rich history, technological prowess, space achievements and the strong India-UAE ties. It will also showcase our achievements over the past 75 years. With fast-paced reforms across sectors such as mining, space, banking and atomic energy, India has proved to be a nation that is adaptable and agile, even in the midst of the pandemic. And the people of India, whether living in their own country or abroad, are the true sources of strength and the beacons of hope to guide India towards becoming a stronger and more prosperous country in the post-pandemic era. While our peoples remain the backbone of this relationship, trade and commerce have been the engines of growth The synergies, shared vision and complementary strengths of India and the UAE present a rare opportunity to contribute to the progress of not only our two countries, but also for the broader region and the world. The UAE needs the right pool of manpower support to diversify its economy in fields such as agriculture, manufacturing, Artificial Intelligence and space, among others. India has the technical know-how and the required human resources. Above all, India's interests align with those of the UAE. When the pandemic hit the world by surprise, our relationship was tested, but India, the UAE and the peoples of both countries stood side-by-side in their fight against the health crisis. India's External Affairs Minister, Dr S Jaishankar, said in August 2020: “India and the UAE share a fast-growing relationship. The UAE is central to India’s extended neighbourhood. We see the UAE on the crossroads of international trade. As Singapore is in the East, the UAE is in the West. It is a relationship where the highest leadership of both countries have invested goodwill and energy. As a result, you can see the transformation during the last five years.” The best bilateral relations are those that rest on the three pillars of trust, shared interests and long-term commitments. The India-UAE relationship has every ingredient to become an ideal bilateral relationship and has proved its worth on every occasion. I am sure the best is yet to come. Pavan Kapoor is the Indian Ambassador to the UAE.
Source: The National News
Discussions between both countries are ongoing to explore possibilities of launching joint ventures, technology exchange in defence sector, says Ajit Gupte Trade exchange between India and Egypt increased to $1.10bn in the first quarter (Q1) of 2021, compared to $ 968.6m in Q4 of 2020, which shows a steady improvement, and promises optimistic trade figures in the future, according to India’s Ambassador to Egypt Ajit Gupte. India’s exports to Egypt increased to $628.2m in Q1 of 2021, compared to $575m in Q4 of 2020, while Egyptian exports to India increased from $393.6m to $474.2m in the same comparison period. During an interview with Daily News Egypt, Gupte said that the trade exchange between the two countries reached $4.16bn in fiscal year (FY) 2020/21, down from $4.5bn in FY 2019/20, a slight decline due to the coronavirus (COVID-19) pandemic. “We are happy to note that despite the pandemic, the trade volumes have been reasonably good, which gives more confidence that as the situation improves, the volume of trade between India and Egypt will go up. In 2020, India was Egypt’s 6th largest export destination and the 8th largest source of import. India was also the 8th largest trade partner for Egypt,” said the Ambassador. He added that the top Indian exports to Egypt were meat, tobacco, vehicles, and cotton yarn. The top Egyptian exports to India were crude oil, fertilizers, and cotton. As India celebrates on 15 August its Independence Day, Daily News Egypt sat down with the Indian Ambassador to learn more about the cooperation aspects between the two countries. In your opinion, what distinguishes the Egypt-India relationship? India and Egypt, two of the world’s oldest civilizations, have enjoyed a history of close contact from ancient times. Egypt has traditionally been one of India’s most important trading partners in the African continent. Cultural exchanges between the two countries have existed since time immemorial. Ashoka’s edicts refer to his relations with Egypt under Ptolemy-II. In the 20thcentury, Mahatma Gandhi and Saad Zaghloul shared common goals on the independence of their countries. An exceptionally close friendship between President Gamal Abdel Nasser and Prime Minister Jawaharlal Nehru led to a Friendship Treaty between the two countries in 1955. The Non-Aligned Movement was a natural outcome of this relationship. The strong ties between India and Egypt are evident from the affection towards India amongst the Egyptians. The strong people-to-people connections and business relations have continued to strengthen. After President AlSisi in Egypt and Prime Minister NarendraModi in India came to power, we witnessed a new phase in bilateral relations defined as “New Partnership in New Era”. What are India’s priority files in terms of its diplomatic relations with Egypt? The immediate agenda is revitalization of the bilateral mechanisms, which have taken a hit due to COVID-19. There are multiple MoUs in the pipeline towards achieving these objectives and we are hopeful that the relationship will improve rapidly, overcoming the limitations imposed by the pandemic. Improving defence cooperation via joint exercises, sharing of expertise, joint production, counter-terrorism cooperation, etc. are also important aspects of our relations which we intend to explore further in the future. Expanding bilateral trade and commercial relations, with more Indian investments in the fields of renewable energy, pharmaceutical sector, etc. in Egypt is also one of our key objectives. Both India and Egypt are young and vibrant societies, but it is imperative that we ensure food and health security of our people, their education, sustainable employment opportunities etc. as well. As such, exchange of best practices on meeting SDGs provide another major avenue for India and Egypt to collaborate further. India’s efforts towards enhancing technical and economic cooperation through scholarships, exchange programmes, etc. are designed to meet these goals through capacity-building in developing countries. India has witnessed great economic, technological, and industrial leaps. How can Egypt benefit from Indian expertise in these areas? Indian private investment in Africa has surged, particularly in telecommunications, IT, energy, and automobile sectors, and sources estimate Indian investment at over $32bn. Much of the current India-Africa trade and investment relationship can be attributed to the steps taken by the Government of India and the initiatives of the Indian private sector. India is also a pioneer in space research, online education, cyber security, financial technology, etc. This expertise and dynamism is coupled with an increasing receptiveness in Egypt which could help broaden our cooperation significantly. India’s role in higher education and training in Egypt is primarily conducted through the Indian Technical and Economic Cooperation programme (ITEC). This cooperation can be further enhanced through online education. Many African students and professionals have benefited from ITEC derived projects like the Pan-African e-network project and the Special Commonwealth Assistance for Africa Programme (SCAAP). What about the technical cooperation between Egypt and India? Technical cooperation and assistance have been a major part of our bilateral relationship. In the 4th Joint Committee Meeting (JCM) on Science and Technology between India and Egypt was held in New Delhi, both sides agreed to support 20 new R&D Projects in areas including Nanotechnology, ICT, and Biotechnology. It is also agreed that Indian& Egyptian scientists will collaborate in a more focused way to develop affordable solutions for common challenges faced by both the countries on water, food, energy and health. More than 1400 Egyptian nationals have availed scholarships under Indian Technical & Economic Cooperation Programme (ITEC), ICCR, and CV Raman International Fellowship for African Researchers. ICAR and the Agricultural Research Center of Egypt are working in the field of agricultural research. In addition to this,’Science & Technology’ cooperation is being implemented through biennial Executive Programmes. The Government of India has also provided support to Egypt to establish a Centre of Excellence in Information Technology (CEIT) at Al Azhar University, and upgrade a vocational training centre at Shoubra El Kheima in Cairo. Could you brief us on India’s steps towards digital transformation? An ambitious initiative that was launched by Prime Minister of India Shri Narendra Modi on 1 July 2015, #DigitalIndia has today turned into a mass movement, touching the lives of the majority of Indians. Notably, there were 1.10 billion mobile connections in India in January 2021. The number of mobile connections in India increased by 23 million (+2.1%) between January 2020 and January 2021. The number of mobile connections in India in January 2021 was equivalent to 79.0% of the total population. This increase in connectivity has changed the lives of ordinary Indians. There were 624.0 million internet users in India in January 2021. Internet penetration is growing rapidly in rural India. Mobile data in India is many times cheaper than elsewhere. Indian internet users are paying less than $0.10 per GB. India leads the total number of digital transactions with 25.5 billion real-time payments transactions. We have developed a very robust digital payment infrastructure. Our dream of m-Governance – offering services on Mobile phones and ensuring access to online services to all – is a reality today. Implementation of initiatives like Aadhaar, UPI, and Digilocker is ensuring faceless, cashless, and paperless Governance that has laid the foundations of a strong, robust, and secure Digital India. What about Egypt-India cooperation to combat COVID-19? Both countries worked closely at all levels to fight the common challenge that the coronavirus pandemic poses to the world. Under its “Vaccine Maitri” programme, the Government of India sent over 66 million vaccine doses to 95 countries, including Egypt, which received 50,000 doses of the AstraZeneca vaccine from India. Similarly, when the second wave of Coronavirus hit India, and the cases increased rapidly in May 2021, Egypt was one of the first countries to come to India’s assistance and sent three aircraft carrying nearly 30 tons of medical aid and equipment. The Egyptian Pharmaceutical firm M/s EVA PHARMA also provided 300,000 doses of Remdisivir drug to India at the height of the second wave in May-June 2021. The first quarter of 2021 saw resurgence of hope and economic activity, indicating a return of normalcy since the battle with the global pandemic began in early 2020. When the onset of the second wave of COVID-19 became apparent in May 2021, the Government, corporates, social organisations, and NGOs came forward to mitigate the suffering and to save lives and livelihood. The most important factor that contributed to the decline of the 2nd wave was India’s ability to empower its citizens with the right information and take precautions, as per the advisories issued by the Ministry of Health & Family Welfare. India has successfully used open-source digital tools like COWIN app for contact tracing and vaccine management. The positive indications in the last two months are that there has been a sharp decline in cases, a reduction in positivity rate and deaths, and lower active cases. India has surpassed the 530 million mark in terms of the total number of COVID-19 vaccine doses administered so far. We are hopeful that we can vaccinate the entire adult population of India by the end of 2021. As Prime Minister Shri Narendra Modi highlighted, India has taken a “whole of society” approach to fighting the pandemic, synergizing the efforts of all levels of the Government, industry, and civil society. How much is the value of Indian foreign direct investment (FDI) in Egypt? What are the main challenges that Indian companies still face in Egypt? Indian investment in Egypt exceeds $3bn. Over 50 Indian companies are actively present in Egypt. Major Indian investments in Egypt include TCI Sanmar (with investments of $1.5bn), Alexandria Carbon Black, Kirloskar, Dabur India, Egypt-India Polyester Company (EIPET), SCIB Paints, Godrej, Mahindra and Monginis. Indian companies are present in a range of sectors like apparel, agriculture, chemicals, energy, automobiles, retail and others. It is estimated that overall, these companies provide direct and indirect employment to approximately 35,000 Egyptians. There should be more outreach activities from Egypt to promote special economic zones in Egypt to Indian companies to attract investments. Egypt is blessed with its strategic geographical location, improved infrastructure and being a member of several free trade agreements. But these factors, along with financial incentives, must be showcased to the Indian business community by Egypt in India. Also, disruption of travel during COVID-19 prevented many Indian companies from participating in events in Egypt. Indian companies are looking forward to meeting potential counterparts in Egypt and I hope the restriction on air travel will be lifted soon, especially as about 530 million vaccine doses have already been provided in India and most Indians wanting to travel are fully vaccinated. We hope to see more bilateral investments between India and Egypt. Egyptian investments in India have been around $35m against Indian investments of $3bn plus in Egypt. India is a top investment destination for several sectors like IT, Pharma, Food Processing, Infrastructure, roads, etc. We would like to see top Egyptian companies to invest in India in these fields to make use of the opportunities presented in India by several schemes like Production Linked Incentives (PLI), Make In India, etc. Does India plan to participate in the Egypt Defence Expo 2021? Yes, India plans to participate in the Egypt Defence Expo 2021. While the details of the weapons, equipment, and technologies to be displayed have not been finalized yet, we intend to make this a platform to showcase the latest developments in Indian defence technology. Will India and Egypt cooperate in the manufacture of weapons? Discussions are ongoing to explore possibilities of Joint Ventures and Transfer of Technologies in the defence sector. Ship-building is also an area of interest for both the countries. Multiple Indian companies like HAL, BDL, GRSE are discussing agreements with Egyptian companies for further cooperation. Could you brief us on the Embassy’s plan to enhance the cultural exchange between the two countries? The Embassy – through Maulana Azad Centre for Indian Culture (MACIC) – seeks to popularize Indian culture by organising Hindi, Urdu, Yoga classes, dance classes, as well as Seminars and Exhibitions. The “India by the Nile” (IBN) annual Cultural Festival has emerged as the largest foreign festival in Egypt. IBN showcases Indian styles of classic and folk dance such as Kathak, Bharatanatyam, Odissi, Manipuri, etc., Exhibitions of different art form and handicrafts, Yoga and Ayurveda, Bollywood dance and music, Indian fusion music, Street Food Festival, screening of films, a Writers’ Workshop and a number of other events. The “Egypt by the Ganga” Festival organized by the Embassy of Egypt in India with the support of Indian Council of Cultural Relations (ICCR) has showcased the glory of two ancient civilizations and deep rooted cultural ties. Indian cultural groups have participated at the International Festival for Drums and Traditional Arts, Samaa International Festival for Chanting and Spiritual Music, Ismailia Folk International Festival, Aswan International Festival, International Festival for Art and Culture, etc. In its outreach activities, the Indian Cultural Centre also organizes India Day(s) in Egyptian Governorates and Universities. Yoga has gained immense popularity in Egypt with many schools in Cairo, besides Centres in other cities. The International Day of Yoga is celebrated with growing enthusiasm. The International Day of Yoga 2021 was celebrated in cooperation with the Ministry of Youth and Sports, Heliopolis club and the Child Museum. The event included the presence of the Deputy Minister of Youth and Sports. I myself gave TV Interviews to many major TV channels, which has reportedly been seen by a very large number of Egyptians. Film screenings and other activities, including performing arts by visiting Indian cultural troupes, are regularly organized in cooperation with the Egyptian Ministry of Culture all over the country. “Glimpses of India” painting competition is organized, in close cooperation with the Ministry of Education, annually for the last 25 years for school children at all educational levels and almost in all governorates of Egypt. The last edition of the event in 2019 saw an overwhelming participation of over 17,000 students. We have recently revived Hindi and Urdu language classes, as well as Yoga classes run by MACIC. These cultural linkages would be strengthened in the near future, once the COVID-19 situation improves.
Source: Daily News Egypt
It is highly unlikely that India will become a USD 5 trillion economy by 2024-25 due to the slowdown caused by the COVID-19 pandemic, University of Massachusetts professor Vamsi Vakulabharanam has said. Moreover, Indian economy will be smaller for a considerable period of next year compared to its size in 2019, Vakulabharanam told PTI in an interview. Vakulabharanam said while Covid-19 is certainly the most important factor for economic slowdown, what is notable is that India's decline is much steeper than what other developing countries and the global economy witnessed over the last year. "As of now, the current Indian GDP is less than USD 3 trillion. If this has to jump to USD 5 trillion in four years, the economy has to grow higher than 13 per cent per annum, on the average," he said. In 2019, Prime Minister Narendra Modi envisioned to make India a USD 5 trillion economy and global power house by 2024-25. "Even in the best of scenarios, this is highly unlikely," Vakulabharanam, co-director, Asian Political Economy Program at University of Massachusetts Amherst(USA) said. According to him, even if everything goes according to current growth projections by the RBI and IMF, Indian economy will be smaller for a considerable period of next year than it was in 2019. The IMF and the RBI have very recently revised the growth rates downward. As per the latest CSO estimate, the economy contracted by 7.3 per cent last year, and as per the latest RBI estimate, the economy will grow by 9.5 per cent this year. Asked what fiscal measures are necessary to support households in distress, he said that they have two basic needs: minimum subsistence and accessible health care. "In the wake of this unprecedented crisis in the Indian economy, the government should have taken up drastic measures to support the poor households on both these counts," Vakulabharanam said. On high inflation, he said the current higher level of inflation is not a matter of serious concern for the economy. "Since much of the inflation is coming out of supply slowdowns and lower capacity utilization, boosting aggregate demand ought to be the main concern of the government," he said, adding that if this leads to a rise in inflation in the short-run, that should not worry the government. Vakulabharanam, however, noted that it is important to protect the poor from inflation in essential commodities, so the government should undertake proactive measures to ensure that the poor are not hurt in the short-term.
Source: Economic Times
Women’s self-help groups and cooperatives and concrete proof of ownership that allows land to be converted into productive finance and capital, together, would channel rural energies into new entrepreneurship and production. The prime minister’s rousing call on the 75th anniversary of India’s Independence for all Indians to join in a collective effort over the next 25 years — a period he referred to as Amrit Kaal, the Auspicious Phase — to attain an advanced degree of multifaceted development that is inclusive is unexceptionable. He called for energy independence over the next 25 years and inclusion in terms of reaching every section of society, erasing the urban-rural divide and the gender divide. He announced a new development initiative for creating integrated, high-speed transport infrastructure. He envisioned the startup culture spreading to tier 2.
Source: Economic Times
Sakthivel, chairman of the Apparel Export Promotion Council and president of Federation of Indian Export Organisations, said the extension of the Rebate of State and Central Taxes and Levies on export of garments and made-ups with effect from January 1, 2021 is a step by the Union government towards achieving the vision of $400 billion merchandise exports. Prime Minister Narendra Modi, during a recent interaction with heads of Indian Missions abroad and key stakeholders of trade and commerce sector, including AEPC, had set an aspirational target of $400 billion in merchandise exports for the ongoing fiscal. The extension of RoSCTL till 31 March 2024, which was notified on Friday, was approved by the Union Cabinet on July 14, 2021 to make Indian textiles internationally competitive. Mr. Sakthivel said the scheme would ensure refund of embedded taxes, cesses and duties. It would help increase exports of textiles and apparels, attract additional investment and provide direct and indirect jobs to lakhs of people, especially women, he said. “The decision adds to the stability of the export policy of textiles. We now look forward to being a stronger global player with this continued RoSCTL support. The scheme will promote start-ups and entrepreneurs to start exporting their products. It will rejuvenate the textiles sector and, in three years, the Indian textile value chain can attain annual exports of $100 billion,” Mr. Sakthivel said. Tiruppur Exporters’ Association president Raja M. Shanmugham said the notification for implementation of the Rebate of State and Central Taxes and Levies on Export of garments and made-ups and implementation of the scheme with effect from January 1, 2021 would help the liquidity-starved garment export industry. Speedy release of the scrips would enable the industry to recoup and become fully operational. Manoj Patodia, chairman of Cotton Textiles Export Promotion Council, said continuation of the scheme for four years lays down the foundation for reaching the target of $100 billion exports in the textile and apparel sector. The exporters would also be encouraged to enter into long term contracts with their buyers in view of the stable policy which will lead to higher export growth. T. Rajkumar, chairman of Confederation of Indian Textile Industry, welcomed the announcement of RoSCTL guidelines for the garments and made-ups segments. However, the rest of the textile value chain was still waiting for the Government’s decision for the announcement of the RoDTEP Scheme to enable them to be fully competitive.
Source: The Hindu
Sinha said insolvency professionals (IPs) should be allowed to dispose of different assets, instead of the stressed firm as a whole, as going concerns to maximise gains. India needs to benchmark its recovery from the resolution of insolvent firms against that of peer economies, and not against the low liquidation value of the toxic assets, Jayant Sinha, chairman of the Parliamentary Standing Committee on Finance, told FE in an interview. The committee, which submitted a report on the Insolvency and Bankruptcy Code (IBC) this month, cautioned that the five-year-old law might have strayed from its original objectives, thanks to inordinate delay in resolution and large haircuts for lenders. Sinha said it’s incumbent on the National Company Law Tribunal (NCLT) and insolvency professionals (IPs) to prevent defaulting promoters or their surrogates, who are ineligible to bid under section 29-A of the IBC, from delaying resolution process through frivolous litigation, which are often blamed for the erosion of asset value. “If you take out some of the high-profile cases, recovery tends to be quite low, and in some cases, people are thinking of liquidation as the benchmark,” Sinha said. “Liquidation should not be seen as the benchmark; instead, we should be looking at insolvency resolution around the world, especially in our peer economies. The recovery for secured financial creditors (in peer economies) should be the actual benchmark.” While the average recovery from toxic assets was to the tune of 39% of creditors’ claims until March 2021, in some cases, the haircuts were as high as 95%. This asymmetry has to be reduced, critics say. Of course, the recovery through the IBC is still way above that via other extant mechanisms, including Lok Adalats, DRTs and Sarfaesi Act. Asked if the panel’s recommendation that a professional code of conduct for the committee of creditors (CoC) be put in place to define and circumscribe its role would lead to further litigation as aggrieved parties could question the CoC’s decision, Sinha replied in the negative. “The Supreme Court has been very clear that the CoC’s commercial judgement is supreme. However, code of conduct with well-established traditions, protocols should be put in place so that the CoC would recognise that there are certain norms and that there should be transparency in meetings and processes, etc.” To realise the original goals of the IBC, Sinha suggested that rules and regulations be streamlined, possibly though another amendment to the IBC, and the NCLT (National Company Law Tribunal) apparatus be bolstered to expedite the resolution process. The most crucial reason for the delay in resolution and asset value erosion are the bottlenecks in the NCLT system, Sinha said. As many as 13,170 insolvency cases involving claims of Rs 9.2 lakh crore are awaiting resolution before the NCLT. About 71% of the cases have been pending beyond 180 days. To address this, Sinha said, the over 50% vacancies at NCLT benches (against the sanctioned strength of 62, they have only 28 members) need to be filled up urgently. Specialised NCLT benches have to be set up to handle only IBC cases (currently NCLTs also handle cases relating to corporate affairs, mergers and acquisitions, etc). Similarly, to improve the quality of judgments, only high court judges should be appointed judicial members of the NCLT, Sinha said. “This is because if there is a poor judgement from the NCLT, the aggrieved party appeals against it. The case then goes to the NCLAT or the Supreme Court, which leads to delays as well. So, we should focus on improving the quality of NCLT judges, their training and competence,” he said. The panel has also suggested that the entire resolution process be digitised. Sinha said insolvency professionals (IPs) should be allowed to dispose of different assets, instead of the stressed firm as a whole, as going concerns to maximise gains. He also called for strict adherence to timelines and voiced against entertaining late bids by the CoC, as it “creates a lot of procedural uncertainties”. Analysts have pointed out that often the defaulting promoters, or their proxies, try to delay resolution by coming up with late bids. The House panel under Sinha also batted for a pre-pack resolution framework (currently limited to only MSMEs) for large corporations and a single regulator for both IPs and IP agencies (IPAs). At present, while the IPs are regulated by the Insolvency and Bankruptcy Board of India (IBBI), the IPAs are backed by bodies, including the ICAI and ICSI, which are governed by different laws. It also called for swift introduction of the cross-border insolvency law. The panel’s recommendations, Sinha said, reflect a judicious mix of legislative amendments and operational changes that are required to strengthen the insolvency ecosystem. Commenting on the government’s move to junk the 2012 retrospective taxation amendment, Sinha said: “It puts to rest the worry that businesses and investors have about retrospective taxation. And it does it in a lawful way, which preserves the sovereign right to taxation. The government found an excellent solution for the uncertainty created by the UPA government’s decision”.
Source: Financial Express
An IIT-D team is working on yarn and novel structures to make monumental tirangas stronger and durable. Ever wondered how the Tricolour always flutters — withstanding extreme weather conditions, diverse politics, and the weight of a nation, especially as we celebrate our independence day. To solve the weight of the issue, a team led by Bipin Kumar, Professor in Textile and Fibre Engineering Department of IIT-Delhi, has created several prototypes. These will be tested September onwards with installation of a flag on the IIT-Delhi campus. “We have spoken to several flag pole vendors because making a flag pole takes one month. Our target is to install a 100-ft flag pole before October 2 to test its durability under real weather conditions. Since I have made several prototypes, I will check them every two months,” he adds. Kumar is a Mentor at SWATRIC, a research-based start-up incubated at IIT Delhi in July 2021. He informs that work on the fabric design and raw material began two months ago. “At present, we are working on yarn and novel structures to make the flag fabric stronger and durable. The fabric technology is based on knitting, but further information on the design and specifications fall under IP protection and cannot be shared. But the prototypes have given encouraging results under lab conditions. We have already achieved a 200% increase in fabric strength compared to the one available in the market.” This project started due to a letter that SWATRIC got from the Flag Foundation of India, raising several concerns about the flag’s fabric. Ashim Kohli, CEO, Flag Foundation – a non-profit body that won a seven-year long court battle that enabled all Indians to display the tiring at their homes, offices and factories, 365 days of the year, says, “I got to know that the existing flags were getting torn very fast. When I delved further, I realised that manufacturers have no answers because they don’t follow any scientific process to select the fabric. Since I was not technically qualified to know that, I got in touch with IIT Delhi.” Gurpreet Kalsi, General Manager, Kalsi Brothers, who runs a fabric factory in Moti Nagar and a flag manufacturing unit in Jhandewalan, shares that the flags are made using polyester, satin, and khadi. The cost of a 20x30ft monumental flag begins from Rs 25K and goes to Rs 25L, depending upon the size. SK Chabria, Owner of The Flag Company that has produced flags from shiny knitted polyester for over 15 years now, agrees with Kalsi, saying new fabric will increase customer satisfaction. “At present we get a lot of complaints about the fabric. And research is a costly procedure that can be done by an organisation like IIT only, and I am happy it’s being done.” Bipin adds that if the size of these PET fabric based flags is small, they are durable but if they are bigger, they get torn within seven to 15 days, incurring huge replacement costs. “Since it’s about the pride of a nation, our aim is to bring the cost down at least by 50 per cent. I cannot commit anything but we will provide the best solution at an economical price,” he says. “IIT authorities had visited my unit and I helped them with all the information and fabric they required, and I think if they successfully develop something, we can together we can provide quality products to people,” wraps up Kalsi.
Source: New Indian Express
There’s slow fashion, minimalist fashion, zero-waste fashion, sustainable fashion, ethical fashion. And each of these categories overlap in their goals and practices. There's slow fashion, minimalist fashion, zero-waste fashion, sustainable fashion, ethical fashion. And each of these categories overlap in their goals and practices. Slow fashion prioritises and honours the traditional fashion and artisans' handmade work over machine-made goods. Zero-waste fashion uses upcycled goods to minimise wastage, and although the boundaries are blurred between these various kinds of fashion, the goals are similar -- to help maintain a bio diverse and healthy ecosystem. It is about being more informed and making conscious choices that go with a consumers' value system. This 'conscious fashion' is when your participation is to act as a vehicle to bring about awareness and a positive change. Today, many new-age brides are more keen to align their choices and ideas with what they actually wear, especially on their D-day. Women are acting with critical awareness and making decisions based on personal values, finances, choice and experience. Tiya from Latha Puttanna Design House, says, "We have seen multiple young brides come to us with their mom’s age-old heritage handloom sarees and ask us to reinvent or rather reimagine it into a lehenga or sharara or even a dress that they can wear for their wedding day. The pandemic has brought a deep understanding and respect for the ‘slow-fashion culture." She goes onto add that brides are ready to explore options which gives designers a fabulous canvas to create one-of-a-kind garments. "The bond of a mother’s love cannot be showcased better than in these types of garments." This era of phygital fashion shows gives us a peek into the luxury fashion brands and their adherence to conscious fashion as well. The luxury brands have started encouraging resale as well and this grants a new lease of life to second-hand clothes that would otherwise end up as waste. Labels are producing wastage over the past few quarters, with designers employing locals who are skilled and manufacturing locally owing to the risky global supply chain. This is helping in generating employment, reducing carbon footprint and also saving skilled labours and craftsmen. India has a rich heritage when it comes to weaves, textiles and motifs, and probably it should be leading the way up the ramp when it comes to sustainable fashion. From paying skilled weavers fairly, to embracing natural dyes and fabrics, brands are promoting ethical fashion. Neeraj Verma, CGM NABARD, says, "The Udupi handwoven sarees that are one of the finest examples of handweavers in the country were on the verge of extinction. The weavers engaged in the art were dormant primarily due to lack of design development, funds and inadequate marketing. It was in this background that in the year 2019, NABARD supported the initiative of Kadike Trust to revive this ancient craft. Owing to this programme the GI tag for Udupi sarees has been awarded to Talapady Weavers Society in 2020." The Udupi sarees revival also came up with the unique marriage of Kashmiri Aari work with the weaves of Udupi serving as a fine example of artisans' impeccable craftsmanship. This shift in the design process coupled with a sustainable approach brings in a fresh whiff of stylish and colourful fashion, creating a diverse wardrobe for new-age fashionistas.
Source: New Indian Express
Merchandise exports rose to $35.43 billion last month. This growth is 49.85 percent higher than $23.64 billion worth of exports registered in July, 2020 and 35.05 percent higher than exports registered in July, 2019. This is also the highest-ever exports recorded at least in the previous 9 years and, no doubt, recovery in key global markets played a key role in this growth. This development is welcome. A deeper look into the last month exports data shows that while growth was led by higher demand for labour-intensive sectors like engineering goods, gems and jewellery, textiles and apparels and chemicals and electronic goods, it is also noteworthy that exports of non-petroleum and non-gems and jewellery in July 2021 grew 28.18 percent y-o-y to $26.12 billion. This figure is 32.3 percent higher than the pre-Covid level (July 2019). Meanwhile, it is good to see that the government has continued to push exports of agricultural and processed food from regions which were not earlier part of our export map. Recently, a consignment of dehydrated Mohua flower was exported to France from Chhattisgarh. Similarly, a consignment of processed Himalayan Goat meat sourced from villages of Uttarakhand hills was exported to Dubai. Complacency can a problem, however, and at this moment the Centre should instead focus on addressing some major challenges being faced by the sector. One such major issue is delay in notification of the RoDTEP rates due to which exporters are losing out on huge orders. Similarly, the sector is also demanding release of the necessary funds for MEIS and clarity on SEIS benefits. These issues need to be resolved urgently.
Source: SME Times
Local garment manufacturers have demanded that the government ease conditions for importing yarn, cotton and fabrics as work orders were pouring in from international clothing retailers and brands. "We have a lot of work orders…We need ready raw materials like yarn, cotton and fabrics," said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The quantity of work orders is so high that local raw material suppliers are also facing difficulties in ensuring the timely supply of goods, said Hassan. Hassan sent a letter to Commerce Minister Tipu Munshi on Saturday demanding easing the rules for importing yarn from India by removing different non-tariff barriers and improving infrastructures at the land port areas. He demanded that the government allow the import of yarn, cotton fabrics and other raw materials particularly through the Bhumra and Sunamasjid land ports under bonded warehouse facility. Currently, importers can import yarn, cotton and fabrics from India under the bonded warehouse facility only through the Benapole Land Port as it had storage and warehouse facilities. The BGMEA also demanded that the government allow partial shipment facilities through the land ports, including the Benapole land port. Partial import of garment raw materials is now allowed only through the country's premier sea port at Chattogram. Partial shipment refers to allowing importing and unloading a portion of a consignment ordered under letters of credit (LCs). Businesspeople choose partial shipments mainly for timely use of raw materials and to reduce storage and warehousing costs of imported goods. For instance, imagine an importer opening an LC for importing 100 tonnes of yarn but currently having a capacity to use 50 tonnes. In that case, he opts for bringing over 50 tonnes for the time being and importing the remaining 50 tonnes later at his convenience. However, in case of raw material imports not being made through Chattogram port, importers do not have the scope for partial shipments. So, the importers have to import the whole consignment at one go if those are not unloaded at Chattogram port. "Partial shipment is very much needed for us as we also need to reduce the cost of storage and warehousing," said Hassan. "The government should also construct more warehouse facilities in the land port areas so that goods can be properly stored," he told The Daily Star over the phone. The BGMEA also sought improvements of the infrastructure at the land port areas so that transport congestion can be avoided there in case of importing raw materials in bulk quantities from India. Local garment manufacturers have been trying to import yarn and fabrics from India in bulk quantities as demand has soared with a rise in work orders while prices of yarn have gone up in the local markets. The local garment manufacturers and exporters and spinners were at loggerheads recently for instabilities in the supply of yarn and for unusual price fluctuations of yarn in local markets. Last week scrapping separate press conferences, leaders of the BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), terry towel association and Bangladesh Textile Mills Association (BTMA) sat together in a meeting, where they decided not to increase the prices of yarn in local markets. Monsoor Ahmed, chief executive officer of the BTMA, opted against allowing partial shipments through the land ports, reasoning that it would create scopes for irregularities. The government has stopped partial shipments many years ago to stop the irregularities, Ahmed told The Daily Star over the phone. The BGMEA in its letter could not state whether they would get yarn at lower prices from any country, Ahmed said. Yarn prices in the local markets increased mainly for associated rises in freight charge and cotton price in the international markets. The same reasons are applicable for garment manufacturers and exporters, Ahmed said. "It is not possible to import yarn without bond. The local industry will face challenges if all ports are opened up and the government will lose a lot of revenue. So it is not possible to import yarn without bond," said BTMA President Mohammad Ali Khokon,. The garment manufacturers want to import yarn without bond which is very dangerous for the local industry, he added. Last fiscal year, Bangladesh imported 8.2 million bales of cotton and 326,539 tonnes of yarn, according to data from the BTMA. The spinners say they can supply 3,500 million kilogrammes of yarn a year. The BGMEA in the letter said the cost of production has increased by 30.10 per cent over the last eight years, although the prices of clothing items declined 3.7 per cent last year manly because of the fallouts of Covid-19. The freight charge went up anywhere from 100 per cent to 300 per cent during the pandemic. Over the last one and a half years, the local garment exporters have catered to work orders accepting losses. But now they are expecting to make a profit as the international retailers and brands have been placing a lot of work orders. However, high yarn prices are becoming a major concern for them, the BGMEA said in the letter.
Source: The Daily Star
Asia’s renewed surge in Covid-19 infections is compounding supply-chain blockages across the world’s biggest source of manufactured goods. After weathering earlier pandemic waves better than other regions, the fast-spreading delta variant has thrown into turmoil factories and ports in countries that were once among the most successful containing the virus. The snarls in Asia -- where the United Nations estimates around 42% of global exports are sourced -- risk twisting their way through global supply chains just as shipments would usually ramp up for the Christmas holiday shopping season. As earlier snags have shown, problems that start in Asian ports can ripple slowly, showing up later as delays in places like Los Angeles or Rotterdam and higher prices for consumers. The flare-ups also worsen an already tortured year for exporters, with shipping costs sky-high due to a shortage of containers and as raw materials such as semiconductors become pricier and difficult to source amid red-hot demand. Delta is likely to significantly disrupt trade in Asia,” said Deborah Elms, executive director of the Singapore-based Asian Trade Centre. “Most of the markets have been fortunate in managing Covid well so far. But as Covid continues to spread, this lucky streak is likely to end for many locations.” In a sign of those concerns, oil prices extended declines at this week’s opening in Asia as the delta variant’s spread has undermined the outlook for global demand. In China, the world’s third-busiest container port was partly shut recently, while in Southeast Asia -- among the worsthit regions -- factory executives have stalled production of electronics, garments and scores of other products. At stake is an export boom that shielded trade-driven economies during the pandemic and was expected to fuel a broader rebound. The World Trade Organization had forecast Asia to lead an 8% rise this year in global goods trade. Meanwhile, the supply choke will fuel concerns that rising inflation for Chinese producers or U.S. consumers will prove more than transitory, testing expectations among policymakers for a near-term cooling in prices. The delta variant -- as contagious as chickenpox -- infiltrated China’s tough border defenses, seeding the first cases for months in places like Beijing and Wuhan. Indonesia is leading Southeast Asia in cases and deaths, pushing the region toward being among the worst-hit globally as vaccination rollouts lag. While China’s cases are relatively low, its zero-tolerance approach has ensnared the Meishan terminal in NingboZhoushan port, where all inbound and outbound container services were halted Wednesday after a worker became infected. That shutdown follows the closure of Yantian port in Shenzhen for about a month after a small outbreak, which had ripple effects for international shipping. In Southeast Asia, manufacturing managers saw a slump in activity last month as critical exporters struggled to keep factories running, a sign that Covid might finally be making a dent in the region’s resilient trade. While Indonesia, Malaysia, the Philippines, Vietnam and Thailand account for a combined 5.7% of global exports, they can greatly impact bigger economies like the U.S. and China, particularly in electronics, according to estimates by Natixis. China imports 38% of its data processing machines and 29% of its telecommunication equipment from the five countries, while the U.S. depends on half its semiconductor imports from the bloc. That extends to export hubs of Japan and South Korea, which have remained mostly on track. Samsung Electronics Co., for instance, last month said revenues in its mobile phone business have been hit by the outbreak in Vietnam. Vietnam’s government has taken extreme measures to minimize the hit to exports -- a broad basket that includes electronics and garments -- as new cases jump to about 16,000 daily, from single digits in April. Authorities have ordered manufacturers to allow workers to sleep overnight at factories as the share of the population fully vaccinated lingers around 1%, near the bottom of the Bloomberg Vaccine Tracker. It’s not been enough for companies like Harco Shoes and Materials Manufacturing Co., in Hung Yen province near Hanoi. “Things are getting worse and worse as most factories in southern provinces had to stop operations and companies in the north have been struggling to maintain some production,” Pham Hong Viet, chairman and chief executive officer, said in a phone interview. “The country’s entire supply chain has been seriously disrupted.” Economists are already paring their growth forecasts for Asia as real-time indicators show a hit to consumption and other activity. While “nowcast” readings from Bloomberg Economics show the global economy is poised for acceleration this quarter, the delta flareup in China alone is affecting areas that account for more than one-third of its gross domestic product. Among reasons for recently downgrading their global growth forecasts, economists at JPMorgan Chase & Co. highlighted the risk from Asian countries with low vaccination rates. The virus surge comes as exporters continue to complain of sea freight costs that can be multiples of what they were before the pandemic, mostly due to a shortage of shipping containers. The Drewry World Container Index reached $9,421.48 per 40-foot container as of Aug. 12 -- about 350% higher than the same time a year ago. “The major challenge for us is the high international shipping costs, which are double or even triple what they were prepandemic,” said Lanm Lai, director of foreign trade at CNC Electric in China’s Zhejiang province, whose products include meters and wall switches. “Last year, during the peak of the pandemic, we thought it would be short term. But looking forward, I don’t think there will be a substantial change soon,” he said. Executives like Raymond Ren -- who runs Pinghu Kaixin Plastic Industry Co. Ltd., which makes travel bags and suitcases and also in Zhejiang -- aren’t hopeful for a course correction anytime soon. “I don’t think anything could reverse this in the short-term,” he said. “You can’t predict anything during this pandemic. With assistance from James Mayger, Ann Koh, Claire Che, Sohee Kim, Jinshan Hong and Nguyen Dieu Tu Uyen. At stake is an export boom that shielded trade-driven economies during the pandemic and was expected to fuel a broader rebound.
Source: Economic Times
Japanese envoy says Pakistan needs 5 years to bring it at par with global ports. Pakistan can utilise Gwadar port as a transit hub in the short-term, as the country needs another five years to make it an international standard seaport that also has an industrial complex, says Japanese envoy to Islamabad, Matsuda Kuninori. Countries like Pakistan need second and third trade ports and for that matter it is very wise for Pakistan to build a second port like Gwadar because Karachi is very congested, said Matsuda told The Express Tribune on Thursday. “But Gwadar at this time does not have any industrial complex or commercial hinterland,” said the ambassador, saying there were second and third stage projects that will take longer time to be completed. “I am always a positive thinking person and I will give it five years for make Gwadar an international standard port”, said Matsuda. “We are closely following how fast and to what extent second and third stage projects will be prepared so that Gwadar can become a trade hub in a true sense.” The ambassador’s remarks are in line with the ground realities. This week, the Cabinet Committee on China-Pakistan Economic Corridor rejected the marketing plan for the Gwadar port prepared by the Chinese operators. But the port operators blame the government for its inability to provide the logistics to make Gwadar a hub of economic and commercial activities. “Gwadar has a future but for that matter there has to be good planning of the second and the third stage including building an industrial complex and some kind of logistic support area and inland road networks which connects Gwadar with inland cities,” said Matsuda. He said that Gwadar has a great future in the medium and long term but for a short period of time Gwadar can be utilised as a place where people can use it as a transit station. If the Gwadar port area is designated as an international tax free storage area then you bring goods to store in Gwadar and then send to neighbouring Gulf countries, he added. Gwadar can be used as a support port for Karachi port. Pakistan has given Gwadar port to China on lease but both the countries have not yet been able to present it as the most viable port in the region despite declaring it the crown jewel of CPEC. He said that the prioritised Special Economic Zones (SEZs) being set up under CPEC were also not located at places where Japanese automobile investors can set up factories. “If Pakistan would like to get new investment in the automobile industry that will have to be in the vicinity of Karachi and Lahore where the automobile factories are located,” said the ambassador. He said that CPEC SEZs, Dhabeji in Sindh and Faisalabad’s industrial zones, are not in the vicinity of these two cities therefore, it will be difficult for Japanese investors to set up factories in these cities. Faisalabad would make sense only for textile related investment. “The SEZ is a magic word but it cannot come out of the blue and you have to build water, gas, and electricity and waste management facilities,” said the ambassador. Sometimes, we hear so much about the SEZ but not necessarily enough facilities are provided in these zones, he added. To build a successful SEZ the key to success is selection of land, it is usually successful if it is related to export, which means it should be located close to the trade port or border area with trade partners. In case of Pakistan, for short-term SEZ should be built closer to Karachi area for midterm it could be built in other parts of the coastal areas and in the long-term border area might be considered, advised the ambassador. The ambassador also briefly spoke about Pakistan’s fiscal conditions. He said that Japan was no longer providing loans to Pakistan. “We are concerned about a worsening financial position and I understand that the prime minister himself does not like receiving loans, instead he prefers to get investment and trade,” said the ambassador. In terms of Pakistan’s financial structure and ongoing negotiations with the IMF, the Pakistani government does not like to receive new loans which are going to add into the debt of Pakistan. We intentionally avoid giving new loans. If in the future the financial position improves and there is really a needy project of Pakistan’s socio economic development, we will be happy to provide softer loans as Japan gives much softer loans than those given by many countries including China, he added. He maintained that China was not a reason for not giving loans to Pakistan.
Automobile policy
The ambassador said that he was in favour of the new automobile policy that the government has prepared for a five-year period. The Pakistani car market has been dominated by Japanese cars for the past three decades. “I am personally satisfied with the new automobile policy that will ensure Pakistan’s transfer from combustion engine technology to hybrid and then to electric vehicles.” “Right now, Pakistan’s automobile industry is practically assembling units.” Pakistan’s automobile market is mature enough to move from assembling stage to full-scale manufacturing base, he added. In light of local conditions including the electricity generation capacity, it is a bit difficult to jump from combustion to EV stage. Pakistan needs to take a step by step approach. The ambassador said that during the past 25 years, Japanese carmakers have done a lot for localisation and “I know the speed of localisation is unsatisfactory in view of local buyers and we also have received some complaints”. He said that there are some areas where the quality of local supplies is not high. There are some components that still have to be imported from Japanese suppliers. Localisation also means new investment by Japanese suppliers and setting up factories in Pakistan. Japanese automakers are struggling to set up factories in Pakistan, he added. The Pakistan government could help us to give some incentives in taxation and some other benefits. Japanese manufacturers can set up plants if incentives are given in the shape of tax and tariff reduction on import of necessary machinery, he added.
Source: Tribune
