The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 31 DECEMBER, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-12-30

Item

Price

Unit

Fluctuation

Date

PSF

966.58

USD/Ton

-0.79%

12/30/2015

VSF

1957.83

USD/Ton

-2.31%

12/30/2015

ASF

1923.15

USD/Ton

0.00%

12/30/2015

Polyester POY

937.29

USD/Ton

0.08%

12/30/2015

Nylon FDY

2281.57

USD/Ton

-1.33%

12/30/2015

40D Spandex

4933.12

USD/Ton

0.00%

12/30/2015

Nylon DTY

5744.00

USD/Ton

0.00%

12/30/2015

Viscose Long Filament

1148.49

USD/Ton

0.00%

12/30/2015

Polyester DTY

2158.24

USD/Ton

0.00%

12/30/2015

Nylon POY

2108.14

USD/Ton

0.00%

12/30/2015

Acrylic Top 3D

1013.60

USD/Ton

0.77%

12/30/2015

Polyester FDY

2543.64

USD/Ton

-1.79%

12/30/2015

30S Spun Rayon Yarn

2728.63

USD/Ton

-0.56%

12/30/2015

32S Polyester Yarn

1533.89

USD/Ton

-1.49%

12/30/2015

45S T/C Yarn

2512.81

USD/Ton

0.00%

12/30/2015

45S Polyester Yarn

1711.18

USD/Ton

0.00%

12/30/2015

T/C Yarn 65/35 32S

2142.82

USD/Ton

-1.42%

12/30/2015

40S Rayon Yarn

2882.79

USD/Ton

-0.53%

12/30/2015

T/R Yarn 65/35 32S

2497.39

USD/Ton

0.00%

12/30/2015

10S Denim Fabric

1.08

USD/Meter

0.00%

12/30/2015

32S Twill Fabric

0.90

USD/Meter

0.00%

12/30/2015

40S Combed Poplin

0.98

USD/Meter

0.00%

12/30/2015

30S Rayon Fabric

0.73

USD/Meter

0.00%

12/30/2015

45S T/C Fabric

0.74

USD/Meter

0.00%

12/30/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15416 USD dtd.30/12/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Govt OKs Amended TUF Scheme for textile sector

The government on Wednesday decided to introduce the Amended Technology Upgradation Fund Scheme (ATUFS) for the textile and garment sector and approved a total allocation of Rs 17,822 crore to clear pending claims as well as roll out the new scheme. Textile secretary Sanjay Kumar Panda told FE the Cabinet Committee on Economic Affairs also ended the interest subsidy being provided for investments made under the extant TUFS and decided to provide only the capital subsidy. FE was the first to report on October 8 that the government could end interest subsidy under the TUFS, as it intends to rationalise various dole-out-based schemes. Of the total outlay approved by the CCEA, Rs 12,671 crore would be used for clearing pending claims under the current TUFS, while another Rs 5,151 crore has been allocated for subsidy payment under the new scheme over a period of seven years, Panda said. The amended scheme would give a boost to “Make in India” in the textiles sector and is expected to attract investment to the tune of Rs 1 lakh crore and create over three million additional jobs over a period of seven years, added Panda, who has been instrumental in clearing up subsidy claims pending for years now. Noted textile expert DK Nair said: “It’s a welcome change in the sense it brings clarity and predictability to the scheme. It will also be easy to implement ATUFS, as various forms of support have been replaced by just capital subsidy, which will be in the form of a one-time support. However, the support under the scheme appears to have been scaled down now, which may take some shine off it.”

Under the new scheme, there will be two broad categories: apparel, garment and technical textiles segments will be provided 15% subsidy on capital investment, subject to a ceiling of Rs 30 crore rupees for entrepreneurs over a period of five years; remaining sub-sectors would be eligible for capital subsidy at a rate of 10%, subject to a ceiling of Rs 20 crore on similar lines. Currently, the government provides interest subsidy up to 6%, capital subsidy up to 30% in the form of a grant and support under the margin money scheme (another form of capital subsidy) for investments under the TUFS, depending on the segment in which investments have been made. The government has already trimmed Budget allocation for subsidy payment under the TUFS to Rs 1,521 crore for 2015-16, compared with Rs 1,864 a year before. The move to end interest subsidy is a part of the government’s efforts to remove various interest subsidies across sectors to curb their distorting effect on the interest rate market. RBI governor Raghuram Rajan had been warning that broad-based interest subsidies and loan waivers lead to the distortions of credit price and that “distorted prices lead to the wrong kind of investments” and the misuse of schemes. “All cases pending with the Office of Textile Commissioner which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect,” it added.

SOURCE: The Financial Express

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New textile scheme to generate 30 lakh jobs, Rs. 1-lakh cr investment

The Centre has stitched together an Amended Technology Upgradation Fund Scheme (ATUFS) that will give a boost to ‘Make in India’ in the textiles sector by attracting investments of Rs. 1-lakh crore and creating over 30 lakh jobs. The Cabinet Committee on Economic Affairs on Wednesday approved the scheme to replace the existing Revised Restructured TUFS. According to an official statement, “A budget provision of Rs. 17,822 crore has been approved, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme [RR-TUFS], and Rs. 5,151 crore is for new cases under ATUFS.” The statement said with the amount provided for new investment in 2012-17 exhausted, the Finance Ministry was approached for enhancing the allocation.

Under the new scheme, there will be two broad categories; one for apparel, garment and technical textiles, wherein 15 per cent subsidy will be provided over five years on capital investment not exceeding Rs. 30 crore. The second category, comprising all the other sub-sectors, will get 10 per cent subsidy, subject to a ceiling of Rs. 20 crore. The new scheme targets employment generation and export by encouraging the apparel and garment industry. It will encourage better quality in processing industry and check the need for import of fabrics by the garment sector.

TXC to step up

Eligible cases now pending with the Office of Textile Commissioner (TXC) will be provided assistance under the ongoing scheme and the new scheme given prospective effect. The TXC is also being reorganised and its offices shall be set up in each State. TXC officers will be closely associated with entrepreneurs for setting up units under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with State government agencies.

SOURCE: The Hindu Business line

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Textile research associations asked to utilise allocated funds

Textile research associations across the country should utilise the funds allocated under Technology Mission for Technical Textiles (TMTT), Textile Commissioner Kavitha Gupta said.  In her address to the 56th Joint Technological conference of four major textile research associations -- BTRA, SITRA, ATIRA and NITRA -- Gupta said the fund utilisation on average was 76.51 per cent, with Bombay Textile Research Association (BTRA) utilising only 33.44 per cent.  Stating that there was no constraint for funds to support the sector, she said of the Rs 9 crore released out of the allocated Rs 13.5 crore, BTRA's Centre of Excellence for Geotech had utilised only Rs 3.01 crore.  While South India Textile Research (SITRA) has utilised Rs 9.72 crore of the released fund of Rs 11.43 crore, Ahmedabad Textile Industry Research Association (ATIRA) has kept pending Rs 2.46 crore of the release amount of Rs 22.99 crore, she said.

Describing technical textiles as the future of the industry, she said the market size is projected to increase from Rs 75,925 crore in 2012-13 to Rs 1,58,540 crore in 2016-17, with a growth rate of 20 per cent year-on-year. South India Mills' Association (SIMA) Chairman M Senthilkumar said from 2003 onwards, the government has cut the fund allocation to these associations drastically. Most of the old textile mills, which were pillars of SITRA, got closed and most of the new textile units established in the post-liberalised era hardly extended any support to the association, he said, adding that they availed all the benefits indirectly. Stating that all the research associations had become financially weak and unable to attract and retain talent, Senthilkumar said the 7th Pay Commission's proposed pay scales might aggravate the situation.

SOURCE: The Business Standard

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Textile mills ask Gujarat govt to check adulteration in cotton

The Southern India Mills' Association (SIMA) today requested the Gujarat government to take necessary steps to curb alleged adulteration practice followed by some cotton ginners in that state.  In a letter to Gujarat Water supply, Agriculture, Cooperative minister, Babhubhai B Bokhiriya, SIMA Chairman M Senthilkumar alleged that some ginners were mixing cotton waste in the virgin cotton with profit motive, which affected the image of Gujarat and also strenuous efforts put in by the farmers not only in the dometic, but also in the International markets.  Stating that the SIMA member mills were sourcing 60 to 70 lakh bales from Gujarat, he said that these mills have now now reduced the volume of purchase from the state by 40 to 50 per cent, and started sourcing cotton from other states and also contracted significant volumes for imports from countries like West Africa.  Gujarat, which produced about 120 lakh bales of cotton, can consume only 15 lakh bale at the maxium and remaining had to be consumed predominantly by the mills in Tamil Nadu and in other parts in the country, he pointed out.

SOURCE: The Business Standard

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Meghalaya Govt moots geotextiles for road construction

The State Government is looking at application of geotextiles for construction of roads in unstable areas and embankments for flood control. With this aim in view, a team from National Textiles Corporation Limited (NTCL) and State PWD made a site inspection of a road near Tura on Wednesday which will be taken up as a pilot project for construction with use of geocells. In this regard, a presentation was made to Chief Minister Mukul Sangma earlier on Tuesday afternoon by Director (Marketing), NTCL, Aloke Banerjee on application of geotextiles in the presence of senior PWD officials of Garo Hills at Circuit House, Tura with a promise of quality and sustainability. It may be mentioned that NTCL is a Central PSU under the administrative control of Union Ministry of Textiles, incorporated in 1968 and is vertically integrated with 23 state-of-the-art mills of a wide range of quality products in yarn and fabrics. It has been supplying uniforms and sarees to various state governments, PSUs and private companies and is fully equipped in developing world class uniforms and technical textile solutions to Defence and Home Affairs ministries. It has recently made entry into technical textile projects ranging from protective textiles to geotextiles.

In the recent years it started coordinating with Northeastern states on use of agro and geotextiles to combat the challenges of civil engineering right from project identification and implementation. In his presentation Banerjee highlighted that the geotextile technology will help improve the stability of the soil, which would increase the viability and the strength of the road. He said that the technology can be used for all-weather road as well as kutcha roads in the villages. The government will also look at the possibility for embankment project with use of geo-bags along the Jinjiram River in West Garo Hills, which is prone to flood and geocells for areas which are prone to landslide. The NTC has taken up embankment project along the Brahmaputra in Assam using the geo bag technology, which has been mooted for projects in Meghalaya as well. The NTC has expressed its keen interest to work with local contractors to introduce the technology. They said that the new technology would increase the cost of construction initially to 10-15 per cent, which will provide more stability to roads as it would not require repair and maintenance for at least seven to eight years. The Chief Minister instructed  the PWD to tie up with NTC to look at possibilities for initiating a few projects in the State with textile technology. He said he was looking forward for a more effective partnership with the NTC for taking up ramie-considered to be the strongest natural fibre – as an alternative to jute textiles keeping in mind the potentialities of the farmers who grow this fibre plant. He suggested that the corporation consider the use of Ramie for their technical textile products.

SOURCE: The Shillong Times

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Rising price drive textile mills to imports cotton from W African countries

The price of cotton generally shoots up when the industry needs cotton and when the arrivals have come down in the market. But this year, just two months since new cotton season began and the prices of cotton have already gone up though arrivals continue to be high in the market. This situation has driven as many as 43 textile mills in the State have come together and plan to import cotton from West African countries, depending on the requirement. Prabhu Damodaran, secretary of Indian Texpreneurs Federation, said that instead of deciding to go in for imports at a later time, this year, they plan to monitor the domestic and international prices regularly and import cotton when the prices are viable. The mills will be entering into individual contracts for the imports. However, it will be a joint decision. This will benefit the mills as they will have adequate cotton when there is a need and they would have purchased it at viable price levels. It is generally seen that every cotton year (October to September), the price of cotton starts going up after the picking season.

SOURCE: Yarns&Fibers

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Exports to remain under pressure in New Year: India Ratings

India's export sector will continue to remain under pressure in the new year hit by depressed commodity prices and a sharp fall in the euro, India Ratings (Ind-Ra) an arm of the global rating agency Fitch said. "The nominal income growth of corporates in most exporting sectors will remain depressed, due to the deflationary impact of falling commodity prices (World Bank non-energy price index fell by 17.4% yoy as of end November 2015). Also, most Indian corporates which have exposure to Europe may be unable to increase product prices to offset the decline in margins caused by the depreciation of the euro due to stiff competition from other Asian exporters," the rating agency said. India's exports fell 16% in the 12 months ended November 2015. About three fourths of the decline is on account of a decline in exports of crude oil and its products and agri-commodities in line with the fall in the prices of these commodities. "A sharp decline in commodity prices has depressed the prices of many intermediate and manufactured goods leading to a decline in the value of exported items," Ind-Ra said. Demand in Asia, OPEC and Africa have been hurt by falling commodity prices, moderating domestic demand and volatile exchange rates, though Europe and US are in a recovery mode, Ind-Ra said.

SOURCE: The Economic Times

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Ministry of Environment, Forest and Climate Change (MOEF) lists initiatives to reduce pollution

Over the past year, the Ministry of Environment, Forest and Climate Change had started a slew of initiatives to combat industrial pollution. The textile industry also comes under the purview of these initiatives. In a press release, the Ministry listed the initiatives that includes the Comprehensive Environmental Pollution Index (CEPI) which is being revised by the Central Pollution Control Board (CPCB), and which will be based on weightage of air, water and land pollution. Real time online monitoring of over 2100 industrial units in 17 highly polluting category including those connected to Common Effluent Treatment Plant (CETP) have been mandated, leaving those units which have been exempted otherwise, or are not operational. These industries have been directed to monitor 24x7 effluent discharge quality and air emission quality. So far, around 1800 industries are reported to have installed 24x7 devices. The CPCB has finalized standards for sewage treatment plants (STPs) which stipulate that treated effluents from STP shall be utilized for non-potable use and if, such effluents are to be disposed off into surface water body of the ground, in such cases, STPs will have to meet stricter standards. The Government has initiated real-time monitoring of water quality of Ganga at eight stations on the main course and two stations on Yamuna to detect untreated effluents. The Government has also developed an Action Plan for Ganga mainstream States to achieve Zero Liquid Discharge (ZLD) and water conservation for tanneries, distilleries, textiles, sugar and pulp and paper and achieving improved effluent standards for irrigation in respect of pulp and paper and sugar industries. The lack of sewage and effluent treatment has been the bane of many textile units across the country.

An online system for submission and monitoring of Environmental and Forest approvals under the provisions of Environment (Protection) Act, 1986 and the Forest (Conservation) Act, 1980 has been put in place. It automates the entire tracking of proposals, including online submission of a new proposal, editing/updating the details of proposals and displays the status of the proposals at each stage of the workflow. A joint action has been initiated with Water Resources Ministry to run sewage treatment plants and with Urban Development Ministry for organised Solid Waste Management. The same formula will be extended to all the other rivers, the release said.

SOURCE: Fibre2fashion

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Cheap commodities main reason for export plunge: India Ratings

Decline in global commodity prices, led by oil, and weakening euro are the key reasons for the continued fall in merchandise exports, says a report. "The steep fall in export shipments is mainly driven by the fall in global commodity prices and the sharp weakening of the euro (averaged 16.6 per cent lower year-on-year)," India Ratings said in a report. However, it added that the contraction in exports is not reflective of actual weakness in export volumes. Merchandise exports have fallen by 16.1 per cent in US dollar terms over the 12 months ending November 2015. According to government data, exports slumped for the 12th straight month in November, declining 24.4 per cent, as petroleum exports plunged 53.9 per cent, followed by gems and jewellery (21.52 per cent), engineering goods (28.57 per cent) and iron ore (14.04 per cent). The trade deficit for the April-November period stood at USD 87.54 billion, lower than USD 102.50 billion year-on-year. "Although global demand conditions remain sluggish, export volumes may not have fallen significantly," the report said. Demand conditions in Asia, the OPEC and Africa have been hurt by falling commodity prices, moderating domestic demand and volatile exchange rates. However, Europe and the US continue to be supportive.

The report said about three-fourths of the decline is on account of a decline in exports of oil products and agri-commodities, in line with the fall in prices of these commodities. A sharp decline in commodity prices has depressed the prices of many intermediate and manufactured goods, leading to a decline in the value of exported items, it explained. The rating agency expects the mixed performance of export oriented sectors to continue, with some sectors performing better than others. The report added that nominal income growth of corporates in most exporting sectors will remain depressed due to the deflationary impact of falling commodity prices. "Also, most corporates which have exposure to Europe may be unable to increase prices to offset the decline in margins caused by the depreciation of the euro due to stiff competition from other Asian exporters," it said. The report also believes that the credit profile of exporting corporates is unlikely to improve even in those sectors which are witnessing modest demand growth.

SOURCE: The Economic Times

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WTO: India to push hard for long-stalled Doha agenda in 2016

After a 'disappointing' year at WTO, India is looking to beef up its efforts in 2016 to push for early conclusion of the long-stalled Doha Round talks at the global trade body and for finding a permanent solution to food security issues. At its recent Nairobi meet, the World Trade Organisation failed to address the concerns of developing countries, resulting in India coming back 'thoroughly disappointed' as far as the 14-year-old Doha commitments are concerned. Successful conclusion of the Doha Round agenda has been very important for developing countries and one of the main pending issues is a commitment from rich nations to substantially reduce their farm subsidies. India registered its strong disappointment over non- reaffirmation of the Doha Development Agenda in the Nairobi declaration despite several nations backing Indian view on this matter.

Despite the WTO meeting getting extended by a day amid hectic parleys, the trade ministers of WTO member countries concluded their talks on December 19 without any commitment from developed countries on cutting farm subsidies. A senior official said that India would now take up the issue of Doha Round as also about public stockholding for food security purposes in 2016. Experts feel India and other developing countries would need to negotiate hard for ensuring a positive outcome. "They may also need to have a clear position on how to address demands (of developed countries) on the so-called new issues," Head of Centre for WTO Studies Abhijit Das said. Rich nations including the US want the WTO to start negotiations on new issues such as e-commerce, investments and government procurement, rather than further discussions on the Doha Round related issues. After returning from Nairobi, Commerce and Industry Minister Nirmala Sitharaman had said India will pursue with greater vigour a work programme for finding a permanent solution to the food security issue besides continuing the fight for reaffirmation of Doha Round. Biswajit Dhar, Professor at Centre for Economic Studies and Planning of Jawaharlal Nehru University, said 2015 has been disappointing for India as far as developments at the WTO are concerned.

The Nairobi Ministerial did not take any firm decisions regarding some of the key issues that India and several other developing countries had flagged, especially on agriculture, Dhar said. "What could hurt countries like India more is the lack of consensus to continue with the negotiations in the Doha Round. The Doha mandate provides the best opportunity to move towards a just trading regime. "In 2016, India would have to re-double its efforts to get the Doha negotiations on track. This is possible only by building strong developing country coalitions, which was missing in 2015," Dhar said. The Nairobi declaration said that WTO members have different views on how to address the negotiations on the Doha Round issues.

In the New Year, India would also discuss framing a work-plan for special safeguard mechanism (SSM) as it is important for poor farmers of developing nations such as India in case of sudden surge in imports or dip in global commodity prices. The Doha Round of negotiations launched in 2001 have remained stalled since July 2008 when the trade ministers' meeting in Geneva collapsed due to differences between the rich and the developing nations mainly on the level of protection for farmers in developing countries. To find a permanent solution to the public stockholding issue for food security purposes, India had proposed either amending the formula to calculate the food subsidy cap of 10 per cent, which is based on the reference price of 1986-88, or allowing such schemes outside the purview of subsidy caps. The food security issue concerns several developing nations which provide subsidised food grains to their poor.

SOURCE: The Economic Times

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Govt expects 45% jump in FDI in 2016

The government expects FDI inflows to rise by 40-45 per cent in 2016 on the back of a series of reforms in the past year while further steps could be on anvil to attract foreign capital. According to the latest available figure for 2015, FDI inflows during January-September period has increased by 18 per cent to $26.51 billion. In the entire 2014, India had received FDI worth $28.78 billion as compared to $22 billion in 2013. Amitabh Kant, Secretary in the Department of Industrial Policy and Promotion (DIPP), told a news agency that FDI would grow by 40-45 per cent in 2016 despite the global slowdown. The sectors that have attracted maximum FDI this year include services, computer hardware and software, telecom, automobile and trading. Singapore was the top source for FDI coming into India in 2015, followed by Mauritius, UK, Japan, the Netherlands and the US.

In a bid to streamline the FDI structure, the government this year introduced a composite foreign investment cap by clubbing all forms of overseas investments to define sectoral limits. It has also relaxed e-commerce norms for foreign companies having manufacturing facilities in India. Kant said that the steps announced to improve ease of doing business would help India become the easiest place for investors. As part of that exercise, the government is planning to put 98 per cent of sectors, which are open to foreign investments, under the automatic route so that businessmen won't need to visit the Finance Ministry for any approval. India's ranking in the World Bank's report on ease of doing business improved to 130th position this year from 142nd last year out of 189 countries. As part of the reform measures, the government has hiked foreign investment caps, opened new sectors and relaxed norms for several segments. It permitted portfolio investors to buy up to 74 per cent in local private banks, while palm, coffee and rubber plantations have been opened up for the first time. FDI norms have also been eased in real estate, defence, civil aviation and news broadcasting sectors.

Sourcing rules for single brand retailers, particularly for high-tech, have been eased by allowing them to sell online without specific permissions. But there is no change in 51 per cent limit for multi-brand retailers like Wal-Mart. To improve investment climate, the DIPP has taken a series of steps that include having a time line for clearance of applications, de-licensing the manufacturing of many defence products and introduction of e-Biz project for single window clearance.

SOURCE: Fibre2fashion

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Tax avoidance pact with Slovenia to be amended

The Union Cabinet on Wednesday approved the signing of a protocol amending the existing double taxation avoidance convention (DTAC) between India and Slovenia. The amendment will broaden the scope of the existing framework of exchange of tax-related information between the two countries to help curb evasion and avoidance, an official release said. It will also enable mutual assistance in collection of taxes.

Maldives pact

The Union Cabinet also gave its nod for signing and ratification of a tax agreement for exchange of information between India and Maldives. The agreement will stimulate effective exchange of information between the two countries which will help curb tax evasion and tax avoidance, another official release said.

SOURCE: The Hindu Business Line

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Fiscal deficit target for FY17 'challenging': FinMin official

The government is committed to meet the fiscal deficit target of not exceeding 3.9 per cent of gross domestic product for 2015-16, although that of 3.5 per cent for 2016-17 looks ‘challenging’ unless the pace of revenue collection rises, a senior finance ministry official said on Wednesday. Earlier this month, the official mid-year economic analysis struck a note of caution by saying there was a case for re-assessment of the medium-term fiscal consolidation road map. This, it said, was due to additional spending due to the recommendations of the pay commission and the higher pension payout for former military personnel next year. The revised estimate for total tax revenue is likely to be Rs 25,000 crore less than the budget estimate of Rs 14.5 lakh crore, the official, who did not want to be identified, told reporters.

Adding that the government was exploring options to secure higher dividend payment from state-run companies. In the April-November period, first eight months of the financial year, indirect tax revenue was Rs 4.38 lakh crore or 67.8 per cent of the full-year aim of Rs 6.46 lakh crore. Direct tax revenue in that period was Rs 3.69 lakh crore or 46.3 per cent of the full-year target. Revenue from disinvestment might also be short of the full-year aim of Rs 69,500 crore, by about Rs 50,000 crore, the official said. The government has so far raised only Rs 12,600 crore through disinvestment, after having budgeted at the year's start for Rs 28,500 crore from strategic stake sales and Rs 41,000 crore from selling equity in state-run companies.

It is likely to, while setting 2016-17's budget goals, estimate crude oil prices below $50 a barrel, the official added. This financial year's budget estimate is based on $70 a barrel. The benchmark Brent crude oil contract was trading on Wednesday at $36.99 a barrel. Low oil prices are helping push economic growth through public investment, Finance Minister Arun Jaitley said on Wednesday. The government will include Rs 5,000 crore for bank recapitalisation in the next supplementary set of demands before Parliament, the official also said. This part of Rs 70,000 crore of capital infusion planned over four years for government-owned banks.

SOURCE: The Business Standard

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Global Crude oil price of Indian Basket was US$ 33.36 per bbl on 30.12.2015 

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 33.36 per barrel (bbl) on 30.12.2015. This was higher than the price of US$ 33.35 per bbl on previous publishing day of 29.12.2015.

In rupee terms, the price of Indian Basket increased to Rs 2215.77 per bbl on 30.12.2015 as compared to Rs 2213.52 per bbl on 29.12.2015. Rupee closed weaker at Rs 66.42 per US$ on 30.12.2015 as against Rs 66.37 per US$ on 29.12.2015. The table below gives details in this regard:

Particulars

Unit

Price on December 30, 2015 (Previous trading day i.e. 29.12.2015)

Pricing Fortnight for 16.12.2015 (Nov 27 to Dec 11, 2015)

Crude Oil (Indian Basket)

($/bbl)

33.36             (33.35)

39.02

(Rs/bbl

2215.77         (2213.52)

2603.80

Exchange Rate

(Rs/$)

66.42             (66.37)

66.73

SOURCE: PIB

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Mergers, acquisitions increase in textiles, garments market inVietnam

Mergers and acquisitions in Viet Nam's textile and garment industry have increased, in a bid to take advantage of free trade agreements, especially the Trans Pacific Partnership (TPP), experts said. According to the HCM City Association of Garment - Textile - Embroidery - Knitting (AGTEK), there was a wave of mergers and acquisitions in local garment and textile sectors as local enterprises found they could not fulfill requested orders due to their limitations in capital. Pham Xuan Hong, deputy chairman of the Viet Nam Textile and Apparel Association (Vitas), said medium- and large-sized enterprises have maintained stable production and business, but small-sized firms have faced many difficulties in their business. Therefore, recently, many small textile and garment companies have sold their workshops and machines and entered other sectors. In addition, some local enterprises have sold part of their factories to foreign investors, he said, including Chinese investors who have developed a system of processing and production for export products in Viet Nam to take advantage of the TPP deal. Nguyen Van Hoan, former head of Ha Noi Industrial, Textile, Garment and Fashion College, said foreign investors had difficulties in expanding their production in Viet Nam because some provinces and cities have limited foreign investment in the garment and textile sectors due to concerns about environmental pollution. This has prompted foreign investors to purchase local textile and garment companies that already have production lines and employees.

Further, the Ministry of Planning and Investment said management offices carefully weighed requests before issuing investment licences for large textile and garment projects, since textile, fiber production and dyeing projects often cause environmental problems, reported vnexpress.net. So, some investors have bought factories from local partners. In 2015, Viet Nam has issued investment licences for 30 textile and garment projects while foreign investment in industry was expected to continue increasing in the near future. In 2016, part of the US$300 million provided by the Indian government would include investments in projects to manufacture textile and garment materials in Viet Nam, as part of the cooperation between the governments of Viet Nam and India.

SOURCE: The Vietnam News

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Nepalese PM for higher textile exports

Following Washington's decision to allow duty free import of readymade garments from Nepal, Prime Minister KP Sharma Oli has urged entrepreneurs to increase the production of such textiles. The Prime Minister who met representatives of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), the Confederation of Nepalese Industries (CNI) and the Nepal Chambers of Commerce (NCC), also welcomed the American decision to eliminate duty on Nepalese clothes. Nepal has been enjoying zero-tariff facility from many other developed countries like Canada, Australia, Japan, Turkey and the European Union, but it has not been able to capitalise on the facility extended by those countries except the EU because of a larger volume of orders. Nepal is also hamstrung by the high cost of production and transportation to seriously challenge major apparel exporters like Bangladesh and Cambodia. Which is why the duty-free access to the US market could turn out to be a level playing field for apparel entrepreneurs of Nepal because it is the only LDC (except African countries under AGOA) to receive this facility. Apparels produced in landlocked Nepal are relatively more expensive than those manufactured in Bangladesh and Cambodia because of higher transportation cost. The US currently levies about 17 per cent tariff on apparels, and the duty-free facility will extend an opportunity to Nepal compete with products of other exporting countries. When the duty-free facility extended by the US comes into effect, Nepali apparels will be cheaper than apparels from other LDCs. That could be the boost the Nepal's tottering readymade garment sector needs to revive itself and make its mark.

SOURCE: Fibre2fashion

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'Chinese economy on track to meet growth target'

China may be battling an economic slowdown. But the Government insists that the economy is on track to meet its growth target. Both foreign direct investment (FDI) in China and outbound direct investment (ODI) have risen this year, putting the nation on track to meet its annual growth target, the China Daily has reported quoting Commerce Minister Gao Hucheng. FDI is expected to reach $135 billion this year, up almost 13 per cent year-on-year, while ODI is forecast to hit $128 billion, up 24 percent year-on-year. Gao said his department's main tasks in the 13th Five-Year Plan (2016-2020) will be to stabilize external demand, improve the quality of high-end manufacturing and adjust the industrial structure to attract quality FDI. “We'll also encourage more Chinese companies to invest abroad to diversify sales channels in the global market,” he said at the ministry's annual meeting in Beijing. Due to fast-growing manufacturing and service industries, China received $620 billion in FDI during the 12th Five-Year Plan period (2011-2015), up 30 per cent on the previous five-year plan. ODI grew 14.2 per cent over the same period.

Commerce Ministry spokesman Shen Danyang said the Belt and Road Initiative, which aims to improve regional connectivity between Asia, Europe and Africa and involves big-ticket infrastructure projects, has contributed to ODI growth this year. The initiative, proposed by President Xi Jinping in 2013, includes the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and covers about 4.4 billion people in more than 60 countries and regions. In the first 10 months of this year, Chinese ODI in 49 of the nations along the Belt and Road routes totaled $13.17 billion, up 36.7 per cent year-on-year, with Russia, Singapore, Laos, Indonesia and Kazakhstan among the top destinations. The environmental protection sector has grown by about 20 per cent a year since 2011, with more than $500 billion injected in the sector over that period. A further 2 trillion yuan ($308 billion) is expected to flood in each year until 2020. Gao said China will also step up negotiations next year on the Regional Comprehensive Economic Partnership, as well as the free trade agreement between China, Republic of Korea and Japan, and the country's proposed FTAs with Sri Lanka and Maldives, to build stronger trade and investment ties with global partners.

SOURCE: Fibre2fashion

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Global growth will be disappointing in 2016: IMF’s Christine Lagarde

Global economic growth will be “disappointing” next year, the head of the International Monetary Fund said in a guest article for German newspaper Handelsblatt published on Wednesday. IMF Managing Director Christine Lagarde said the prospect of rising interest rates in the United States and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide. In addition, growth in global trade has slowed considerably and a decline in raw material prices is posing problems for economies based on these, while the financial sector in many countries still has weaknesses and financial risks are rising in emerging markets, Lagarde added. “All of that means global growth will be disappointing and uneven in 2016,” Lagarde said, adding that low productivity, ageing populations and the effects of the global financial crisis were putting the brakes on growth. She said the start of normalisation of US monetary policy and China’s shift towards consumption-led growth were “necessary and healthy” changes but needed to be carried out as efficiently and smoothly as possible.

The US Federal Reserve hiked interest rates for the first time in nearly a decade earlier this month and made clear that was a tentative beginning to a “gradual” tightening cycle. There are “potential spillover effects”, with the prospect of increasing interest rates there already having contributed to higher financing costs for some borrowers, including in emerging and developing markets, Lagarde said. She added that while countries other than highly developed economies were generally better prepared for higher interest rates than they had been in the past, she was concerned about their ability to absorb shocks. “Most highly developed economies except the USA and possibly Britain will continue to need loose monetary policy but all countries in this category should comprehensively factor spillover effects into their decision-making,” Lagarde said. She warned that rising US interest rates and a stronger dollar could lead to firms defaulting on their payments and that this could then “infect” banks and states.

SOURCE: The Financial Express

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