The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 4 JANUARY, 2015

NATIONAL

 

INTERNATIONAL

 

‘Maharashtra govt to set up new integrated textile park in Beed’

IN order to improve the economic condition of farmers and usher in the processing of agricultural produce, the state government will soon be setting up its second integrate textile park in Beed. Chief Minister Devendra Fadnavis Sunday said the government will make special efforts to increase the usage of indigenous seeds in the state. Fadnavis was speaking at the book launch ceremony of Swabhimani Shetkari Sanghatana (SSS) leader Sadabhau Khot. “The state government has already announced the setting up of an Integrated Textile Park in Amravati and recently Raymond has declared its intention to do the same. It will help in generating more employment opportunities,” said Fadnavis. Fadnavis said that although the state produces 31 per cent of total cotton produced in the country, only 25 per cent is processed and treated. Processing of agricultural produce, he said, allows more economic strength to the farmers. Fadnavis while talking about the present drought situation in the state said that through the state government’s flagship program of Jal Yukta Shivar, 24 TMC of water has been conserved in the state in the last one year. “This costed only Rs 1,400 crore. During the previous government’s regime, such conservation would have costed almost double,” he said.

Making a strong case for decentralised water resources, Fadnavis said that big dams have only managed to give water to a handful of people. “The present crisis in front of the government is due to wrong policies and that has to be corrected,” he said. Another scheme the state government has started to help the distressed agricultural community is the streamlining of the distribution of agricultural pumps. He said that the state government has decided to the clear all pending applications. “In the last five years, there was a huge backlog of pending applications of agricultural pumps. We have decided to start a system in which no one has to wait for allocation of such pumps any more,” he said. Although Rs 7-8 crore is distributed as crop loans every year, Fadnavis said that not even 25 per cent is spent to improve the infrastructure of the farms. “Crop loans are for short terms but some portion of it should be used to improve the infrastructure of the farms. That will help in improving the level of agricultural practices in the country,” he said.

SOURCE: The Indian Express

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Maharashtra govt announces subsidy for self-financed textile units, Malegaon weavers rejoice

In a landmark decision taken for the growth and modernization of the textile industry, the Maharashtra government has announced capital subsidy for the upcoming self-financed projects in the state. The state government has also announced special subsidy for the textiles units in North Maharashtra, Marathwada and Vidarbha. As per the government GR No. 2015/151/Tex-5 to give Capital Subsidy under new textile policy 2011-17 to the self-financing textile project, the Spinning Mills, Cotton Ginning, Processing and Printing units will be given 35% capital subsidy, Technical Textiles and Composite Units will be given 30% capital subsidy, and power loom and other textile related units will be given 25% capital subsidy. The government resolution further said that the upcoming textile units in North Maharashtra, Marathwada and Vidarbha can avail additional subsidy of 10%. “Additional subsidy of 10% is announced for these regions as they are cotton growing areas and establishment of new units in these areas will help the industry and in generating employment”, the GR said. The resolution further said that the government will provide the capital subsidy in above listed sector for the machineries which fulfill the Technology Upgradation Fund Scheme (TUFS) criteria of the central government. This is for the first time that the state government has changed its policy to extend the benefits of subsidy to the self-financed textile units. Till now the government’s capital subsidy was credit-linked and was subject to the loan taken from the bank.

 

The government’s decision has rejoiced the weavers in Malegaon and other textile sectors. “This indeed is a big boost for the textile sector which is reeling under slowdown since more than a year now”, Aleem Faizee, Founder-Secretary of the Malegaon Industries & Manufacturers Association (MIMA) said. He said MIMA was demanding from the state and union governments since 2007 to de-link the capital subsidy so that the entrepreneurs who are financially sound and don’t want to take bank loan can also avail the benefits of government scheme. “In a meeting with Planning Commission of India in January 2007, we had requested the government to de-link the subsidy if it wanted maximum results. The Maharashtra government’s decision will surely speed up the modernization”, he added. There are about 2.5 million power looms in India. Maharashtra has more than 50% of this total running in Bhiwandi, Malegaon, Ichalkaranji, Sholapur, Nagpur and other textile clusters. Despite government releasing a huge amount under TUFS for modernization, so far the country has been able to install just 02 lakh modern and shuttle-less looms.

SOURCE: The Ummid

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Textile ministry to clear air on old schemes

A day after TOI highlighted the issue of confusing amendments in technology upgradation fund scheme (TUFS) about which even the officers of the textile ministry were clueless in spite of issuing the notification themselves, the ministry broke its silence and spokesperson from textile secretary's office contacted TOI on Saturday to give their version on the issue. The representative who didn't want to be named said, "The amended scheme enhances the amount allocated for new investment. It addresses committed liabilities as well and the scope of the scheme has been widened to include those who were presently being left out of the scheme and were unable to avail subsidies for technological upgradation." Though the communication failed to mention anything about the fate of margin money subsidy (MMS) scheme in which almost double subsidy (30%) was available to the industry as against 15% according to the new provisions. The spokesperson though informed that 70% of the fund approved by the government under the new scheme is reserved for disbursing unpaid subsidies to industrialists whose applications have been received by the various regional offices of the textile commissioner.

According to the decision taken in the meeting of the cabinet committee on economic affairs (CCEA) on December 30, 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 and Rs 5,151 crore is for new cases under the amended scheme which is called as Amended Technology Upgradation Fund Scheme (ATUFS).  However, the ministry has assured that by Monday the air will be cleared on the MMS scheme as well. Meanwhile, the representatives of the various industry associations belonging to MSME category have decided that if the ministry doesn't give a clarity about the new notification by next week, they will meet the Union minister of textiles in New Delhi and lodge their protest against the officers and seek action. Vinod Thapar, chairman of the Knitwear Club, said, "If this new notification overrides the old benefits, then it is totally unacceptable to us and we will protest against this if it is implemented. If by next week the officers don't come out with a clear picture on this new order, we will meet the Union minister of textiles and complain about their callous attitude."

SOURCE: The Times of India

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Apparel Park to come up soon at Angamaly

The State Industries Department has given approval for setting up Rs11 crore apparel park at Angamaly which is expected to boost business at the Garments Cluster by upto 300 percent. According to the project report, 10 percent of the cost will be borne by the Mahila Apparels Garments Cluster, while the State Government will bear the remaining cost. Gracy Thomas, managing director of the Angamaly-based Mahila Apparels Garments Cluster said that the 40,000-sqft facility will be a design factory with advanced facilities. It will also have a training institute, besides business space for individual units with 50 to 75 workers. Currently, 73 units are functioning at the Garments Cluster, generating around Rs 1.25 crore turnover annually. Each unit has an average worker strength of 10-15. Once the apparel park starts functioning, production is expected to go up to 500 pieces per day from the current 200. Textile business in an around Angamaly got a big drive ever since the Garments Cluster was launched in 2007, with members sourcing raw materials from North India and supplying to the garment units at low prices. The Garments Cluster has been exporting men’s apparels directly to Oman.

SOURCE: Yarns&Fibers

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Tamil Nadu launches e-com site for loom co-operatives

Tamil Nadu's Department of Handlooms and Textiles has launched a brand new e-commerce site for its Loom World concept which will enable individual Handloom Weavers' cooperative societies to sell their products separately. The website which was launched by Tamil Nadu Minister of Handlooms and Textiles Gokula Indira, is the Department's effort to get on the e-commerce bandwagon and market its Loom World concept. “Loom World as a concept has been around for a while but it is not as widespread as Cooptex, which is the marketing cooperation for all Cooperative Societies,” a leading newspaper quoted a senior department official as saying. Loom World is a more informal concept. It lets each individual cooperative society market its own wares. Loom World's scale is also smaller with only nine against Cooptex which has more than 200. Taking Loom World to the digital world is the Handloom Department's answer to scale up the concept. Co-optex can handle barely 30 per cent of the market that the whole of Handloom cooperatives in Tamil Nadu need. The department is also in talks with e-commerce majors like Flipkart and Snapdeal to widen the reach of handlooms, the report said.

SOURCE: Fibre2fashion

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UP Khadi Board to tie up with online retailers

The Uttar Pradesh Government has tied up with online retailers to sell khadi products in a bid to promote the khadi industry. Designers from the National Institute of Fashion Technology (NIFT) will design the khadi clothes that will be sold online. The products would be first launched on e-commerce majors like Flipkart and Snapdeal. The idea to rope in online retailers has come on the heels of the state government signing a five-year agreement with the NIFT to provide special training on designing khadi clothes to 60 students. Once trained, these students will share their knowledge with workers in various khadi centres across the state. The main motive is to improve the quality of khadi products and ensure that new designs have a modern look.

UP Khadi Board CEO Manmohan Choudhary said the government is trying to engineer a comeback for khadi. He said every khadi product purchased would contribute towards improving the economic condition of the rural poor. The government is still in talks Flipkart and Snapdeal to fine tune the launch of khadi products. The products would initially be offered on discounts to boost sales. The government has earmarked Rs 4.5 crore as the initial budget for the exercise. Meanwhile in Karnataka, the prisons department has plans to tie up with Flipkart, Amazon and other online platforms to sell products made by prisoners at Bengaluru's Central Jail. The made-in-prison initiative will be a first in India, although the concept is common in some western countries. Once the project takes off, the products including garments, showpieces, furniture and carpets will be sold under the label Parivartana (transformation).

SOURCE: Fibre2fashion

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Year End Review - Department of Commerce

 

Vision and Mission

The long-term vision of the Department is to make India a major player in the world trade by 2020 and assume a role of leadership in the international trade organizations commensurate with India’s growing importance. DOC’s goal is to increase India’s exports of merchandise and services from the present level of 465.9 billion USD (2013-14) to approximately 900 billion USD by 2019-20 and raise India’s share in world exports from present 2% to 3.5%.

Strategic Initiatives and Priorities

  • Diversification of export product basket
  • Diversification into non-traditional markets and conclusion of ongoing FTA negotiations and initiating new FTAs
  • Strengthening export related infrastructure
  • Enhancing credit flows for exports at lower cost
  • Reducing Transaction Costs
  • Diversification of Services exports
  • Building up a Brand Image of India
  • Support to Plantation Sector
  • Protection to sensitive domestic industries

Export Performance

During the period April-November 2015 total exports in dollar terms were US $ 174.3 billion which shows a decline of 18.5% over corresponding period figure of US $ 213.8 billion in 2014. Decline in non-oil & non-gems and jewellery export for the reporting period is 9.7% in dollar terms and only 3.7% in rupee terms. Thus the basic picture emerging is that excluding petroleum and gems & jewellery, India's exports have marginally in response to contraction of global demand and fall in commodity prices. While several sectors have shown declines, some have shown increases e.g. ready-made garments of all textiles, carpets, handicrafts, jute manufacturing, drugs and pharmaceuticals, ceramic products & glassware, tea, cereal preparations & miscellaneous processed items.

 

Recent initiatives in Foreign Trade Policy and Ease of Doing Business

Release of New Foreign Trade Policy

The Foreign Trade Policy (FTP) 2015-20 was released on 1st April, 2015.  FTP statement, Handbook of procedures, Appendix and Aayat-Niryat forms were also released. The main focus of new FTP was on improving 'Ease of Doing Business' and Trade Facilitation. FTP statement, released for the first time, explains the vision, goals and objectives underpinning the FTP.  It describes the market and product strategy envisaged and the measures required not just for  export  promotion  but  also  for  the  enhancement  of  the  entire  trade ecosystem.

New FTP Schemes

  1. Export from India Schemes: The new FTP has also simplified the various incentive schemes by merging them into one scheme each for merchandise and service exports, namely MEIS and SEIS.
  2. Merchandise Exports from India Scheme (MEIS): Earlier there were 5 different schemes with different kinds of duty scrips with varying conditions (sector specific or actual user only) attached to their use. Now all these schemes have been merged into a single scheme named MEIS.MEIS offers higher incentives for the following category of products:
  • Agricultural and Village industry products
  • Value added and packaged products
  • Eco-friendly and green products that create wealth out of waste from agricultural and other waste products that generate additional income for the farmers, while improving the environment.
  • Labour intensive Products with large employment potential
  • Industrial Products from potential winning sectors.
  • Hi-tech products with high export earning potential
  1. Expansion of Merchandise Exports from India Scheme (MEIS) in Oct 2015: In light of the major challenges being faced by Indian exporters in the backdrop of the global economic slowdown, Department of Commerce on Oct 29,2015 increased support for export of various products and included some additional items under the Merchandise Exports from India Scheme (MEIS). MEIS, introduced through the Foreign Trade Policy (FTP) 2015-20 on April 1, 2015, with product and market focussed incentives for 4914 tariff lines, is a major export promotion scheme implemented by the Ministry of Commerce and Industry. Rewards under MEIS are payable as a percentage of realized FOB value of covered exports, by way of the MEIS duty credit scrip, which can be transferred or used for payment of a number of duties including the basic customs duty. The current revision introduces 110 new tariff lines and increases rates or country coverage or both for 2228 existing tariff lines.
  2. Service Exports from India Scheme (SEIS): The new scheme has been made applicable to ‘Service Providers located in India’ instead of ‘Indian Service Providers’ in the earlier scheme. Thus, SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider. The rate of reward under SEIS is based on net foreign exchange earned.
  3. E-commerce exports: The new FTP has also introduced a scheme to incentivise exports of goods through courier or foreign post office using e-commerce under MEIS. As the regulatory structure of ecommerce export is still evolving, scope of the scheme was kept limited.

 

Other important FTP initiatives

  1. Interest Equalisation Scheme: The Cabinet Committee on Economic Affairs approved Interest Equalisation Scheme (earlier called Interest Subvention Scheme) on Pre & Post Shipment Rupee Export Credit with effect from 1st April, 2015 for five years.  The rate of interest equalisation would be 3 percent. The scheme would be available to all exports of MSME and 416 tariff lines. Scheme would not be available to merchant exporters. The scheme would be funded from the funds available with Department of Commerce under non-plan during 2015-16 and the restructured scheme would be funded from plan side from 2016-17 onwards.  Ministry of Commerce & Industry may place funds in advance with RBI for requirement of one month and reimbursement can be made on a monthly basis through a revolving fund system. On completion of three years of operation of the scheme, Department of Commerce may initiate a study on impact of the scheme on export promotion and its further continuation. The study may be done through one of the IIMs.The operational instructions of the scheme would be issued by RBI.
  2. New initiatives for EOUs, EHTPs and STPs: EOUs, EHTPs, STPs have been allowed to share infrastructural facilities among themselves to avoid duplication of efforts and cost to create separate infrastructural facilities in different units. Inter unit transfer of goods and services has been allowed to facilitate group of those units which source inputs centrally to obtain bulk discounts. This will reduce cost of transportation, other logistic costs and result in maintaining effective supply chain. EOUs have been allowed facility to set up Warehouses near the port of export to reduce lead time for delivery of goods, STP units, EHTP units, software EOUs have been allowed the facility to use all duty free equipment/goods for training purposes. This will help these units in developing skills of their employees. Time period for validity of Letter of Permission (LOP) for EOUs/EHTP/ STPI/BTP Units has been increased to 2 years to enable the unit to construct the plant and install the machinery with provisions for further extensions. A simplified procedure is being provided to fast track the de-bonding / exit of the STP/ EHTP units. EOUs having physical export turnover of Rs.10 crore and above, have been allowed the facility of fast track clearances of import and domestic procurement and will not have to seek procurement permission for every import consignment.
  3. Facilitating & Encouraging Export of dual use items (SCOMET) and Encouraging Export of Defence Exports: Validity of SCOMET export authorisation has been extended from the present 12 months to 24 months to obviate the need to seek revalidation or relaxation from DGFT. Authorisation for repeat orders will be considered on automatic basis subject to certain conditions. Verification of End User Certificate (EUC) is being simplified if SCOMET item is being exported under Defence Export Offset Policy.
  4. A longer export obligation (EO) period of 24 months has been provided for export items falling in the category of defence, military store, aerospace and nuclear energy instead of the normal 18 months under the advance authorization scheme. A list of military stores requiring NOC of Department of Defence Production has been separately notified.
  5. Privileges and preferential treatment for Status Holders: The New Foreign Trade Policy 2015-20 provides for certain privileges and preferential treatment and priority in handling of consignments of Status holders by the concerned agencies. Accordingly, a shortened time line of one day for 4 and 5 star status holders and 2 days for 1, 2 and 3 star status holders has been stipulated for regional authorities to issue advance authorisations to status holders and for its subsequent amendments, if any.
  6. Manufacturers who are also Status Holders have been enabled to self-certify their manufactured goods as originating from India with a view to qualify for preferential treatment under different Preferential Trading Agreements [PTAs], Free Trade Agreements [FTAs], Comprehensive Economic Cooperation Agreements [CECAs] and Comprehensive Economic Partnerships Agreements [CEPAs], which are in operation

 

Steps to improve Ease of Doing Business

  1. Reduction in the number of documents: New FTP has brought about reduction in the number of documents required for export and import from 7 & 10 respectively to 3 each now. Documents required for export of goods from India are Bill of Lading/Airway Bill, Commercial Invoice cum Packing List and Shipping Bill/Bill of Export. The mandatory documents required for import of goods into India are Bill of Lading/Airway Bill, Commercial Invoice cum Packing List and Bill of Entry. The saving in terms of cost and time associated with the dispensed documents would improve Ease of Doing Business in India.

 

  1. IT initiatives
  • A simplified system for issuance of Importer Exporter Code (IEC) online has been made operational w.e.f. Feb 2015.
  • Online filing of documents/ applications and Paperless trade in 24x7 environment
  • Complaint Resolution System for resolution of EDI related issues has been set up. It is being actively used by exporters.
  • Online system for expediting issuance of authorisations for dual use items (Special Chemicals, Organisms, Materials, Equipments and Technologies [SCOMET]) has been developed. It will be made operational soon.
  • DGFT is currently working on the following EDI initiatives
  • Message exchange for transmission of Bills of Entry (import details) from Customs to DGFT.
  • Online issuance of Export Obligation Discharge Certificate (EODC).
  • Message exchange with Ministry of Corporate Affairs for CIN & DIN.
  • Message exchange with CBDT for PAN.
    • A new look website has been launched making it more user-friendly and easy to navigate. DGFT website has a large dynamic component whereby the trade community can file applications online for IEC and various other schemes of DGFT. The exporters can also see the status of their electronic Bank realization certificates in almost real-time. The website is rich in content with all documents related to Foreign Trade Policy along with a responsive online grievance redressal system.
    • Launch of Mobile Application for Android users for DGFT related services

 

  1. Training of entrepreneurs in the field of exports: More than 20000 entrepreneurs have been trained by DGFT Regional Offices under Niryat Bandhu Scheme. 108 MSME clusters were identified and 150 outreach programmes were conducted all over the country in MSME clusters, Towns of Excellence and Universities/ Management Schools.

 

India’s Stand in the World Trade Organization (WTO)

The Tenth Ministerial Conference of the World Trade Organization (WTO) was held in Nairobi, Kenya from 15 to 19 December 2015. This also happened to be the 20th anniversary of the WTO and during the conference its achievements were recalled by all members. The outcomes of the Conference, referred to as the ‘Nairobi Package’ contains Ministerial Decisions on agriculture, cotton and issues related to least developed countries (LDCs). These cover public stockholding for food security purposes, a Special Safeguard Mechanism (SSM) for developing countries, a commitment to abolish export subsidies for farm exports particularly from the developed countries and measures related to cotton. Decisions were also made regarding preferential treatment to LDCs in the area of services and the criteria for determining whether exports from LDCs may benefit from trade preferences.

An important issue that was discussed at the Conference was the future of the Doha Round of trade negotiations which began in 2001 and remains unfinished. India took the stand that the Doha Development Agenda (DDA) must continue after the Nairobi Conference and no new issues must be introduced into the WTO agenda until the DDA has been completed. The DDA was launched as a development Round to benefit a large number of developing countries and LDCs. A few developed countries, including the United States, however, are opposed to the continuation of the Doha Round.

As the future of the Doha Round appeared in doubt, India sought and succeeded in obtaining a re-affirmative Ministerial Decision on Public Stockholding for Food Security Purposes honouring both the Bali Ministerial and General Council Decisions. The decision commits members to engage constructively in finding a permanent solution to this issue. Similarly, a large group of developing countries has long been seeking a Special Safeguard Mechanism (SSM) for agricultural products. In order to ensure that this issue remains on the agenda of future discussion in the WTO, India negotiated a Ministerial Decision which recognizes that developing countries will have the right to have recourse to an SSM as envisaged in the mandate. Members will continue to negotiate the mechanism in dedicated sessions of the Committee on Agriculture in Special Session.

All countries agreed to the elimination of agricultural export subsidies subject to the preservation of special and differential treatment for developing countries such as a longer phase-out period for transportation and marketing export subsidies for exporting agricultural products. Developed countries have committed to removing export subsidies immediately, except for a few agricultural products, and developing countries will do so by 2018. Developing countries will keep the flexibility to cover marketing and transport subsidies for agriculture exports until the end of 2023, and the LDCs and net food-importing developing countries would have additional time to cut such export subsidies.

 

Fourth India-Africa Trade Minister’s Meeting

The 4th India Africa-Trade Ministers’ Meeting was held on 23.10.2015 at, New Delhi. 34 African countries attended the Trade Minister’ Meeting, of which 23 countries were represented by their respective Ministers.  During the Meeting, the Trade Ministers of India and Africa agreed to diversify Africa’s export to India, continue joint efforts for improved and equitable growth in trade and investment and enhance cooperation in Africa’s SME development.  Africa welcomed India’s expended and simplified DFTP Scheme for LDCs and commended India’s services offer to LDCs.  India and Africa committed to continuing the tradition of mutual support in the WTO negotiations to ensure that the Doha Development Agenda is concluded as per its mandate and also underscore the importance of the 10th Ministerial Conference of the WTO to be held in Nairobi, Kenya.  A commitment was made to establish a joint monitoring mechanism to report on the implementation of the outcomes of Ministers of Trade Meeting.

 

Recent Developments in Regional Trade Agreements (RTAs) and its implications on India         

India has always stood for an open, equitable, predictable, non-discriminatory and rule based international trading system. India views regional trade agreements as ‘building blocks’ towards the overall objective of trade liberalization as well as complementing the multilateral trading system under the World Trade Organisation (WTO).India has concluded 11 Free Trade Agreements and 5 Limited scope Preferential Trade Agreements.

The implications of the RTAs on India can be gauged from the regular impact analysis conducted by the Department of Commerce to make an assessment of the Free Trade Agreements (FTAs) signed by India.  One of the methods of gauging this impact of FTAs on overall trade is through preferential trade data. In this context, the Department of Commerce has analysed the broad trend of our preferential imports under the India-Thailand Early Harvest Scheme (EHS), India-Singapore Comprehensive Economic Cooperation Agreement (CECA), India- South Korea Comprehensive Economic Co-operation Agreement (CECA), India-Japan Comprehensive Economic Partnership Agreement (CEPA), India – ASEAN Trade in Goods (TIG) Agreement and India-Malaysia Comprehensive Economic Cooperation Agreement (CECA).  Though the preferential imports have been increasing from the period 2009-10 to 2014-15, they are still not significant, ranging from 5.9% of total imports under the India-Malaysia CECA to 29.9% of total imports under the India-Korea CEPA during 2014-15. This clearly indicates that the preferential imports under FTAs have not contributed to the increase in trade deficits with some countries.

A separate set of analysis on trade in products where preferences have been exchanged under the India-ASEAN, India-Japan and India-Korea FTAs was carried out by external agencies such as the Centre for WTO Studies and the National Centre for Trade Information (NCTI). This looked at the composition of exports and imports under these FTAs using the COMESA classification. The analysis notes the increase in imports of intermediates and capital goods on lines where preferences have been granted. Similarly, there has been no significant increase in imports of consumer goods. This could thus be attributable to use of cost effective inputs for domestic manufacturing. On exports, one could infer that India has not become a supplier of raw material as well as the fact that increase in the share of intermediate and capital goods exports could be linked to rise in the value addition of our exports.

 

Special Economic Zones

Special Economic Zone (SEZ) Scheme meant for generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities along with the infrastructure facilities. Good Governance Initiatives under implementation in SEZs are:-

  • Dual use of Infrastructure: To facilitate creation of social & commercial infrastructure and other facilities in Non-Processing Area (NPA) of Special Economic Zone, Government vide notification G.S.R. 5(E) dated 02.01.2015 has allowed dual use of facilities in NPA both by SEZ and non-SEZ entities. This will help in optimum utilization of infrastructure set-up in SEZs.
  • Extension of ICEGATE to SEZ Online System: To facilitate paperless transaction for movement of goods for imports and exports from SEZs to Ports, integration of Customs ICEGATE system to SEZ Online system have been launched on pilot basis from Madras SEZ on 19.01.2015. The programme is running successfully.  Further, training/user awareness programme amongst SEZ importers/exporters are being conducted at all SEZ Zones in coordination with NSDL, before the national roll out of the programme likely to be held in the month of May-June, 2015.
  • Standardization of practices, procedures and forms: For ensuring standardization of practices, procedures and forms in all Zones across the country, mapping of activities related to Developers and Units in SEZs was done and timelines for these activities has been prescribed and launched on 14.08.2014 in all SEZ Zones.
  • Digitization and on-line processing of works related to SEZs: A pilot module on digitization and online processing of works related to SEZ Developers and units was prepared. In the first phase five activities of the Developers and twelve activities of the Units have been digitized and implemented in all SEZs w.e.f 01.11.2014. In the second phase seven activities of Developers and eight activities of Units have been digitized and implemented in all SEZ Zones w.e.f 13.2.2015.
  • Setting up of IFSCs in SEZs: The Central Government vide S.O 968(E) dated 08.04.4015 have notified for setting up of Units in an International Financial Services Centre (IFSC) in SEZs. This will result in opening of new avenues in SEZs, particularly in bringing the international financial services like off-shore banking units, insurance/re-insurance business/international stock trading etc. in India.

 

Plantation Sector

Major initiatives in Plantation Sector are as under:-

Digitisation: 100% digitisation has been achieved in all major Spices Board offices including its Head office in Kochi and offices in NER. The Coffee Board has already digitised the licensing of importers and exporters.  National Institute of Smart Government has started work on digitising the licensing and subsidy disbursement functions of the Tea Board.

Tea

Trust Tea’: A sustainability code – named as ‘ Trustea’,  has been launched by the Tea Board in collaboration with the industry and other stakeholders to certify the sustainability of Indian tea. . The code which is now under pilot phase encompasses all aspects of tea production and seeks to embrace sustainability principles to boost productivity, maintain safety standards to improve quality compliance, and include all stakeholders in the mainstream.

Tea Export Strategy: An export strategy to increase India’s share in traditional and non-traditional markets through volume to 300 mn Kgs and unit value to US$6 per kg by 2025 is being discussed with the industry. The strategy will involve higher exports of orthodox, Darjeeling green tea, branded, packaged and value added tea.

Enforcing PPC and developing standards for tea: A Plant protection Code (PPC) for cultivation and manufacture of quality tea is introduced in all tea gardens from 1.1.2015. This will mandate the producers/manufacturers to provide undertaking about the quality of tea manufactured and supplied by them. The Ministry is also working with the FSSAI to notify standards for several other chemicals approved for cultivation in tea.

Rubber

Expanding rubber cultivation: A Plan for expansion of Rubber cultivation in the North east Region and LWE affected districts has been drawn which will be implemented with cooperation of various Ministries and Agencies including the M/DONER, MoEF, and M/RD.

Expert Committee on Policy for Natural Rubber:  A Policy for development of Natural Rubber sector is being formulated to address demands of the rubber industry and growers.  

Spices

Codex Committee: The Codex Alimentarius Commission (CAC) has agreed to set up, on India’s request, to set up a Committee on Spices and Culinary Herbs (CCSCH) with India as the host of the committee. The first Session of the Codex Committee on Spices and Culinary Herbs (CCSCH) was held in February 2014 in Cochin.

Setting up ‘Saffron Production & Export Development Agency’: A ‘Saffron Production & Export Development Agency (SPEDA)’ with headquarters in Jammu & Kashmir for the J&K region is being set up for production and development of Saffron cultivation & exports. Notification has been issued.

Spice Development Agencies: With a view to promote farmer-oriented and export-friendly development practices, the government has reorganised the institutional structure of the Spices Board and has set up Regional Advisory Committees designated as Spice development Agencies ín 11 specific spice growing regions of the country. These Agencies will plan and support the development of spices in the notified regions in collaboration with the Central and state agencies.

Coffee

Addressing White Stem Borer problem: A National level steering committee of departments, and research institutions in the public and private sector including IARI, CCRI etc. has been formed to coordinate and fast-track the research initiatives in the area of white stem borer and to address the problem of fall in productivity of Arabica coffee.

Mainstreaming of States for Boosting Exports

  • As a result of the ASIDE Scheme, in the last 5 years, a total of Rs. 3415 crores has been spent to boost exports and nearly 445 projects by State Committees and 109 new projects by the Empowered Committee have been created by way of export infrastructure.
  • The Department of Commerce has initiated efforts to mainstream the States for boosting exports.
  1. Export Strategy: 15 States have prepared their export strategy.
  2. Export Commissioners: 28States have intimated appointment of Export Commissioners.
  3. Export Awards: 6States have intimated institution of export awards.
  • 3 new Inland Container Depots (ICDs) and 5 new Container Freight Stations (CFSs) were approved in 2014-15 as a measure to expand exports through container traffic. In the last 5 years (from 1.4.2010 to 31.3.2015), 65 Inland Container Depots/Container Freight Stations have been approved by the Department of Commerce.
  • A major exercise was undertaken to update the status of all permission granted by the Inter Ministerial Committee. 29 LOIs were cancelled. A total of 218 ICD/ CFS are functional. Projects under implementation reduced to only 39 as on 31.1.2015.
  • A major development of the year was establishment of procedure for setting up of Air Freight Stations. The initiative will promote international Air Cargo operations by reaching out to hinterland regions of the country besides decongesting the congested Air Cargo Terminals in some gateway international airports that face high dwell time.
  • The Council for Trade Development and Promotion has been constituted vide notification dated 03.07.2015 to develop partnership with States in India’s export efforts. The 1st meeting of the Council is scheduled on 8th January, 2016. The Union Commerce & Industry Minister is the Chairperson of the Council and Ministers of Commerce and Industry in States are members along with Secretaries of concerned central Departments/Ministries and heads of other concerned organization.  

 

Hannover Messe April 2015:

The Hannover Messe is one of the most important annual global exhibitions which provided an ideal platform for India to gain entry to international markets with focus on global technological and industrial innovation.  India was the ‘Partner Country’ at Hannover Messe held during April 12-17, 2015 in Germany.   Hon’ble Prime Minister along with German Chancellor, H.E. Angela Merkel inaugurated the fair. The Department of Commerce coordinated the entire exercise relating to mobilising pavilion of State Governments seminars by various Central Government Ministries presence of Indian Industry at the fair.  Letter of Intents, Joint Declaration of Intent, Memorandum of Understand and Project Cooperation were entered into various sectors of Engineering, New & Renewable Energy, Sustainable Urban Development, Skill Development, Electrical & Electronics, Water & Waste Water management and Green Energy.

Global Exhibition on Services (GES)

The Department of Commerce in association with Services Export Promotion Council (SEPC), India Trade Promotion Organization (ITPO) and Confederation of Indian Industry (CII) organized the second edition of the Global Exhibition on Services from 21 to 23 April 2016 at India Expo Centre and Mart, Greater Noida. The objective of the Exhibition was to provide a platform to all the participants, delegates, business visitors and other key decision maker from the services industry and other related industry to interact with, and explore new business avenues.

SOURCE: PIB

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Cabinet to decide soon on WTO pact

The commerce ministry is finalising a draft note on the trade facilitation agreement (TFA) of the World Trade Organization and will soon approach the Cabinet for an approval, a senior government official said. The ministry has received comments from various departments on a draft note circulated earlier. The final note is being prepared, factoring in the comments, which will then be placed before the Cabinet, the official added. The TFA is aimed at easing customs rules, expediting the movement and clearance of goods and effective cooperation between appropriate authorities of countries concerned on trade facilitation. In 2014, India had decided against endorsing the TFA, which was part of the Bali ministerial package of the WTO in 2013, until the country’s concerns on a permanent solution to the issue of public stockholding was addressed. However, now that the recently-concluded Nairobi ministerial has reaffirmed commitments to firm up the permanent solution on this issue, India is expected to endorse the TFA. The TFA is projected to cut the cost of trade by an average of 14.5% and the impact could be greater than elimination of all remaining tariffs, according to WTO director-general Roberto Azevêdo. It has the potential to raise global merchandise exports by up to $1 trillion a year, according to a recent WTO report. The WTO got six more ratifications for the TFA at Nairobi ministerial, bringing up to 63 the number of its members that have formally accepted the pact. However, the TFA can come into force only when two-thirds of the 162-odd WTO members formally accept the agreement. Myanmar, Norway, Vietnam, Brunei, Zambia and Ukraine are the latest to endorse the pact, which has already been ratified by several developed and developing countries, including the US, Japan, Australia, Korea and China.

Another WTO report suggests only 62 measures, aimed at facilitating trade, were initiated by the G20 nations, including India, between mid-May and mid-October, with a monthly average of just over 12, the slowest pace since November 2013. However, the G20 imposed 86 new trade-restrictive measures between mid-May and mid-October, the same pace at which the group had slapped curbs between mid-October 2014 and mid-May 2015.

SOURCE: The Financial Express

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'Vietnam should aim textile & garment to profit from TPP'

In order to take the complete benefit of Trans-pacific Partnership Pact (TPP), a free trade agreement involving 12 nations, Vietnam should work upon the textile and apparel segment in particular, according to Ngo Chung Khanh, deputy head of the Multilateral Trade Policy Department, Ministry of Industry and Trade, Vietnam. The textile and garment industry is the biggest strength of Vietnam, he said while speaking at a workshop in the Ho Chi Minh City. The Vietnamese textile and garment sector occupies the second position in the US market currently, despite a tax of 17 to 25 per cent. TPP will bring down the taxes by 100 per cent for Vietnam. If the taxes go down by 100 per cent, the Vietnamese textile and garment industry will get a boost in terms of volume and turnover, he added. Khanh opined that TPP will have a bigger impact on the country's trade scenario as compared to its membership in the World Trade Organisation (WTO). It will benefit more from the agreement than other participating countries, and can enhance its exports immensely. But the country should work upon its textile and garment sector, intellectual property rights and labour issues.

Commenting on the labour and intellectual property issues, he said that regulations concerning labour issues in TPP will remain the same as WTO regulations for Vietnam. The labourers can further create organisations to ensure the protection of their rights. Intellectual property rights will be strictly regulated. This agreement will especially boost Vietnam's exports to US, EU and other developed member countries of TPP. Khanh asserted that the agreement will bring economic development, increase the global standing of Vietnam in trade, generate more jobs and improve the national income. On a similar note, Dr Nguyen Tien Dung, principal of Law–Economics University added that TPP will benefit Vietnam more than the other participating countries, and is a good chance for the country to improve its exports and join the global supply chain. But the country is the least developed of the 12 participating countries, which may create obstacles in its development.

SOURCE: Fibre2fashion

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Counterfeit goods killing local manufacturers of Ghana textile industry

Ghana’s markets have flooded with cheap imports, arriving mainly from China in the last decade and under 3,000 jobs now remain in an industry which employed more than ten times that in the 1980s, it reported. Scores of textile industry players have blamed counterfeit goods from China for the collapse of the industry in an interview with UK's Independent newspaper. Isaac Eshun, who works with GTP told the newspaper counterfeiting is the bane of the once thriving textile industry. “I have worked here for 25 years and our product is very fine and people can see the difference when they buy it, but the counterfeiting is a problem,” Mr Eshun says. “It is killing us and it is killing the industry.” Ghana’s markets have flooded with cheap imports, arriving mainly from China in the last decade and under 3,000 jobs now remain in an industry which employed more than ten times that in the 1980s, it reported. “The productivity of local companies is fast declining because of pirated textiles that come into the country,” says Charles Asante-Bempong, a director at the Ghana Employers’ Association (GEA). “They are cheaper... [but] their designs are stolen and replicated with a lower quality and it is killing their businesses.” Mr. Asante-Bempong further blamed Ghana's porous borders with Togo and Ivory Coast for the thriving illegal garments arriving into the country. “We have very porous borders and only a few of them are manned by security people and it is very easy for these counterfeiters to pass through,” Mr Asante-Bempong says. “They are coming in huge quantities, truck fulls sometimes with some coming beneath cars and buses.”

On his part, the managing director of GTP, Kofi Boateng said the impact of the pirated textile has been huge. According to him, the market is not only flooded with cheap garments from the far east, but their designs, trademark and logo and label are copied too. "We started to see that there was a lot of smuggled goods coming from the Far East copying our designs and being smuggled into the country,” he explains.  “They don’t only copy our designs they copy the trademark and logo and label. Almost every design we make has been copied." A task force launched early last year to combat counterfeit goods in the country seems to be yielding dividends, John Okwan, of the Textile, Garment and Leather Employees Union, told the newspaper. “We have seized more than 7,000 pieces since we started the task-force. When the traders hear the task-force coming they will run away and leave their wares because they know what they are doing is wrong,” Mr Okwan says. “We are not saying they should not bring in cloth and they have the right to do their own designs but the problem is with the pirated ones.” Government cancelled a contract with Printex to supply public schools with uniforms, awarding it to a Chinese firm. Mr.Okwan believes the action is a sign of government's low commitment to the industry. “The president said we should produce things in Ghana and so I don’t know who has given that contract to China. It is a big problem now,” Mr Okwan says.

SOURCE: The Pulse

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Textile workshop at Suruç camp offers job opportunities for Syrian women

Syrians residing in Şanlıurfa's Suruç refugee camp earn a living as textile staff at a special tent established for them. The clothes they prepare are sold both locally and abroad. The camp opened a course on textile three months ago, attracting great interest from the refugees. Three tents were joined to create the workshop area where more than 60 refugees now work following training. "They receive training and work here at the same time. All trainees are paid for their work," Suruç Governor Abdullah Çiftçi said, adding that each day more than 1,000 items are produced. The clothes are sold to certain European countries through an intermediary firm.  Mehmethan Özdemir, the manager of Suruç Refugee Camp, said the workshop has around 100 textile machines. Refugees currently work in a 600-square-meter area. "Refugees can work here while earning at least some living. We receive the highest demand from women. The staff is satisfied with their work," Özdemir said. Governor Çiftçi further said that all necessities of refugees are met at the camp. Fleeing from the conflicts in Kobani, Syrian refugees taking shelter in Turkey were settled in the Suruç refugee camp, which was established by the Prime Ministry Disaster and Emergency Management Agency (AFAD) a year ago. At present, 26,000 refugees live in the camp with the capacity to accommodate 35,000 people. The camp offers other professional courses to refugees as well.

In November, AFAD received a public service award from the United Nations for its substantial humanitarian aid to refugees. Turkey's refugee camps were praised for the services and care offered to Syrians who had to flee to neighboring countries during the ongoing civil war in their country, often ending up in overcrowded camps in Jordan and Lebanon. Although unable to house a large number of refugees, Turkey's camps are regarded as far better developed than their counterparts in other countries. The camps, or "sheltering centers," as AFAD calls them, include schools, clinics, grocery stores and playgrounds as well as many other services to cater to the inhabitants' needs.

SOURCE: The Daily Sabah

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Intex South Asia 2015 held at Sri Lanka connected a wide range of textile buyers and suppliers

South Asia’s only international sourcing show on yarns, apparel fabric, denim fabric and clothing accessories was held at the Sri Lanka Exhibition & Convention Centre, Colombo, Sri Lanka, on 16th & 17th November, 2015. Intex South Asia has been designed to strengthen South Asia’s textile and clothing industry, providing access to industry developments, networking opportunities and strategic initiatives to help expand industry and business, all under one roof. 123 exhibitors from 11 countries participated at Intex South Asia, coming from Sri Lanka, India, Singapore, Hong Kong, Thailand, Taiwan, China, Indonesia, Pakistan, Bangladesh and Korea. The organisers of Intex South Asia created the ‘Yarns & Fibres Zone’; ‘Denim World’ and ‘Accessories World’ which enthused exhibitors as well as buyers visiting the fair, helping them to connect easily with their target audience. The highlight of the show was the ‘Trends Zone’ which showcased the Spring/Summer 2016 collections. “Korean companies exhibiting at Intex were satisfied with the buyer quality, to the extent that 2 Korean companies have already committed for Intex 2016 and KOTRA will form a larger pavilion as well for Intex 2016,” said Dan Kim, KOTRA Colombo. “We are extremely happy with the response we received from the fair, got active leads and are now in talks with 5-6 large companies which we met at Intex South Asia,” said Li Yan, Shanghai Deck Lace Weaving Co., Ltd, China.

Buyers from 13 countries visited Intex South Asia. They came from India, Sri Lanka, China, Pakistan, Hong Kong, Bangladesh, Korea, Malaysia, Thailand, Germany, South Africa, UK and Russia. The principal reasons to visit the event were to see the industry’s innovative products and trends, meet trade partners/suppliers and network to find and connect with new suppliers. Top buyers who attended the fair in Colombo included Brandix, Hiradamani, MAS Holding, Next UK, Gap USA, Speedo, Decathlon, Max, Intraport UK, Columbia Sportswear, New Universe UK, Styku USA, Etam Sri Lanka,Arugam-Bay Sri Lanka, Eskimo, George UK and Eskimo to name a few. “I visited Intex to find quality suppliers and was pleased to find some well-known brands present as well as some new ones I did not know. I met with 10 suppliers of which two were short listed. It was also nice to see some new innovations,” said Janet Best, Natific, UK.

Exhibitors were satisfied with the quality of buyers at the exhibition. They were pleased that most of the buyers visiting Intex South Asia were serious, professional buyers who knew exactly what they wanted and pursued inquiries accordingly. The exhibitors’ overall experience was positive with quality leads being generated during and after the show. Intex South Asia 2015 was inaugurated by Chief Guest Hon’ble Sujeewa Senasinghe, State Minister of Development Strategies & International Trade. Guests of Honour were Mr. Arindam Bagchi, Deputy High Commissioner of India and Ms. Indira Malwatte, Chairperson & Chief Executive, EDB. Intex South Asia 2015 was ably supported by Apex bodies from across South Asia and South East Asia.

SOURCE: Yarns&Fibers

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