Barring smartphones, other schemes slow to take off The Rs 6,238-crore PLI scheme for white goods was notified on June 4 and the application window was opened on June 15 and closes on September 15. The government has nudged line ministries to expeditiously sort out all issues related to the various production-linked incentive (PLI) schemes so that investments flow in soon. While guidelines for some sectors are yet to be framed for others, where the process is complete, industry’s concerns about the rules have not been addressed. Little progress has been seen in most PLI scheme barring the one for smartphones, although schemes for 13 sectors, with a total outlay of Rs 2 lakh crore, were announced by November 2020. This is despite the Cabinet approval having been accorded to 11 sectoral schemes. Only two sectoral schemes – textile products and auto and auto components – are yet to get Cabinet approval because the guidelines have still not been framed. In certain areas, like IT hardware, white goods and solar PV modules, the guidelines have been framed. However, the industry is yet to respond fully or it has issues with clauses like incentives and supply chains. Again, the proposed Rs 10,683-crore PLI scheme for products made of man-made fibre and technical textiles is yet to be cleared by the Cabinet because the industry is pressing for a reduction in the “ambitious” turnover and investment targets proposed. The draft scheme had pledged an incentive of as much as 11% for large companies for investments over Rs 500 crore in greenfield projects. The benefit, however, was linked to an incremental turnover of Rs 1,500 crore in the first year and a 25% rise in turnover each year after that. The garments sector, comprising mainly MSMEs and dominated by cotton-based players, also wants value-added cotton products included in the scheme so that a large number of businesses will be benefited. However, the demands go against the government’s intent of luring mainly large companies to create a few champions in key sectors through the various PLI schemes. Interestingly, some players, who are struggling to cope with a Covid-induced liquidity squeeze, want the roll-out of the scheme to be deferred so that they have time to ready themselves to take advantage of the schemes. As reported by FE, the dilemma over fixing the base year and whether to allow suppliers of Chinese origin to invest are the two major impediments delaying the framing of guidelines, and Cabinet approval for the Rs 57,042-crore auto sector PLI. For the 11 sectors where approvals have been granted so far, the base year is FY20. The problem with the auto sector is that the industry’s sales numbers so far in the current fiscal have not been able to touch the FY20 levels. The Rs 6,238-crore PLI scheme for white goods was notified on June 4 and the application window was opened on June 15 and closes on September 15. A senior government official said some companies have already evinced interest and some others are in the process of filing applications. For solar PV modules, the Indian Renewable Energy Development Agency (IREDA), had in May-end invited applications from solar module manufacturers for availing the Rs 4,500-crore scheme. The Cabinet had cleared the scheme on March 31. The last date for submitting applications was initially set as June 30, later extended to August 31, and subsequently to September 15. “The legal and financial aspects of the scheme call for elaborate documentation and paperwork, like the submission of audit reports and compliance with specific formats, for which firms have sought extension of the deadline for filing applications for the scheme,” Rajat Gupta, general manager of marketing and communications of Goldi Solar, told FE. “Since the scheme is new, a number of clarifications are being raised by the industry leading to the postponement of the bid submission timelines,” a senior official from a major renewable energy company said. In the IT hardware sector comprising laptops, tablets, all-in-one personal computers (PCs) and servers, the scheme was notified on March 3 and subsequently 14 companies were selected – 4 global and 10 Indian – but problems continue right from the start. First, even before the scheme got operationalised, the government had to cut the output as manufacturers turned up with low bids. When the government had announced the scheme on February 24, the outlay was fixed at Rs 7,350 crore over a four-year period. During this period, the government had estimated a production of up to Rs 3.26 lakh crore, of which exports was expected to be of the order of Rs 2.45 lakh crore. But finally when the names of the selected companies were announced in May, the production target was slashed to Rs 1.60 lakh crore of which exports would be of the order of Rs 60,000 crore. The manufacturers blamed this on the low incentive structure which works out to an average of 2-2.5% over a four-year period which does not justify relocating units from China or Vietnam, especially for hardware products where import duties are nil as they fall under Information Technology – I products. The industry has once again taken up the matter of higher incentives with the ministry of electronics and IT without which it fears that targets may not be achieved. The other issue highlighted by the industry recently to the government is related to localisation. Since investments from China is technically not allowed, it will be difficult for companies to set up manufacturing/assembly lines in India for the components like PCBA, battery packs, power adapters, etc.
Source: financial Express
India is fast progressing in discussions with several countries for Free Trade Agreements (FTAs), Union Minister Piyush Goyal has said. Currently, India is in discussions on FTAs with several countries including the UK, UAE and GCC countries, Australia and European Union. The Union Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles cited that India and US have agreed to aspire for $500 billion trade in near future. India is fast progressing in discussions with several countries for Free Trade Agreements (FTAs), Union Minister Piyush Goyal has said. Currently, India is in discussions on FTAs with several countries including the UK, UAE and GCC countries, Australia and European Union. The Union Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles cited that India and US have agreed to aspire for $500 billion trade in near future. Furthermore, while addressing the business and trade fraternity through the platform of Jain International Trade Organisation (JITO), he noted that recently India emerged as the world's second most desirable manufacturing destination overtaking the US. The minister pointed out that the trend showed the potential and promise of India to become the "manufacturing hub" of the world. He asserted that along with becoming the "manufacturing hub", India should also become a "trading hub". According to Goyal, every growth parameter is showing an extremely "exciting future for all of us". "Whether it is FDI, forex reserves, foodgrain reserves, agriculture production, manufacturing, all sectors are on a growth path. We now need to sprint ahead," the minister was quoted as saying in an official statement.
Source: Sentinel Assam
The Finance Ministry on Sunday extended the last date to avail the GST amnesty scheme, under which taxpayers have to pay a reduced fee for delayed filing of monthly returns, by three months till November 30. The GST council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, had in May decided to come out with an Amnesty Scheme to provide relief to taxpayers in late fee for pending returns. The late fee for non-furnishing of GSTR-3B for July 2017 to April 2021 has been capped at Rs 500 per return for those taxpayers who did not have any tax liability. For those with tax liability, a maximum Rs 1,000 per return late fees would be charged, provided such returns are filed by August 31, 2021. Following the council decision, the Ministry on June 1 notified reduced late fee for nonfurnishing Form GSTR-3B for the tax periods from July, 2017 to April, 2021, provided the taxpayer filed the returns for these tax periods by August 31, 2021. "The last date to avail benefit of the late fee amnesty scheme, has now been extended from existing August 31, 2021 to November 30, 2021," the ministry said in a statement. revocation of cancellation of registration to September 30, 2021, where the due date of filing of application for revocation of cancellation of registration falls between March 1, 2020 to August 31, 2021. The filing of Form GSTR-3B and Form GSTR-1/IFF by companies using electronic verification code (EVC), instead of Digital Signature certificate (DSC), has already been enabled for the period from April 27, 2021 to August 31, 2021. This has been further extended to October 31, 2021. "The extension of the closing date of late fee amnesty scheme and extension of time limit for filing of application for revocation of cancellation of registration will benefit a large number of taxpayers, specially small taxpayers, who could not file their returns in time due to various reasons, mainly because of difficulties caused by Covid-19 pandemic, and whose registrations were cancelled due to the same," the Ministry added.
Source: Economic Times
Chief Minister Basavaraj Bommai declared the state government will develop a 1,000 acre industrial corridor in Haveri that will create employment opportunities for locals. In his maiden visit to home district Haveri, Karnataka Chief Minister Basavaraj Bommai kickstarted several developmental works and said, “the era of development has begun in Haveri”. Addressing the long pending demand for improving industrial growth in the district, CM Bommai announced the setting up of a textile park in Shiggaon. He also declared that it will be developed on the line of Mega Textile Park in Delhi, adding that the government will develop a 1,000 acre industrial corridor in Haveri that will create employment opportunities for locals. CM Bommai launched various developmental works and laying the foundation stone for projects in Haveri on Saturday, August 29, 2021. He said in the next 6-7 months most of the lake filling projects, initiated by then CM B S Yediyurappa, will be completed. “Talks are ongoing with experts regarding the upper Krishna project. The state government is ready to take up all water projects including Ettinahole, Mahadayi,” he said. The Karnataka government is aiming to vaccinate all eligible people in the state with at least one dose of Covid-19 vaccine. The Chief Minister said they are expecting one crore doses of vaccine by next month. According to him, a target was set to vaccinate 5 lakh people everyday in the state. A special vaccine drive will be held to vaccine people in the slum dwellers, he said. Speaking on the National Education Policy (NEP), CM Bommai said Karnataka is the first state in the country to implement the NEP in higher education. He added that althought there would be some hurdles to introduce the new policy, with the help of the task force committee the government is implementing the NEP smoothly from October. Earlier, the Chief Minister had launched the lift irrigation project at Channenahalli in Hirekerur taluk. He also launched 24*7 drinking water projects in Ranebennur and the project was taken under AMRUT scheme at the cost of Rs 14.12 crore. The foundation stone for the construction of one lakh litre capacity Ultra Heat Treated milk packing unit was also laid at Jangamanakoppa near Haveri. CM Bommai also handed over 109 tippers to various gram panchayats under solid waste management programme. Speaking about Haveri Institute of Medical Science, Bommai said the permanent building is underway and academic activities will start in the next 18 months. Construction work of one lakh litre capacity Ultra Heat Treated milk packing unit will complete in next 18 months and it will start production.
Source: New Indian Express
Despite the Covid-19 severe shock, India's macroeconomy is more healthy and ready for faster growth than it has been for a long time. That recovery from both the first and second waves was faster than expected points towards inherent strengths of the economy," she said Noted economist Ashima Goyal reposed confidence in India's economy and said that the economy is ready for faster recovery from pandemic lows. "Despite the Covid-19 severe shock, India's macroeconomy is more healthy and ready for faster growth than it has been for a long time. That recovery from both the first and second waves was faster than expected points towards inherent strengths of the economy," she said in an interview to PTI. Several agencies have lowered India's projected growth rate in the current fiscal due to the impact of the second coronavirus wave. The RBI estimates peg growth for FY22 at 9.5 per cent. The first quarter GDP data will be released on August 31. NITI Aayog's Rajiv Kumar also foresees a strong rebound on the back of rapid vaccinations, infrastructure push, improved agricultural output due to good monsoons. Goyal also talked about government's renewed infrastructure push having a positive impact on the economy. Goyal, who is also a member of the Monetary Policy Committee (MPC) of the Reserve Bank, said that although many Indian start-ups are doing well but "we should not, however, expect the private infrastructure investment boom of the 2000s." "Portfolio inflows into India are not only due to the quantitative easing of rich countries' central banks, they are also India, moreover, has enough reserves to ride out any volatility while ensuring interest rates are aligned to the domestic policy cycle," she said. On the stock market boom at a time when economic growth has slowed down, Goyal said stock markets are forward looking, so normally they do move ahead of the real economy. "Low interest rates also increase the present discounted value of future earnings and reduce the attractiveness of fixed deposits. A wider Indian public has started participating in stock markets giving them a more diversified portfolio of assets," she said. Observing that having different investor-types makes markets more stable and reduces volatility, Goyal said "gradual rise in policy interest rates need not lead to a major correction if the rise accompanies a growth recovery, which is positive for markets and long term growth prospects remain good." On recent calls for using the huge forex reserves for infrastructure development or recapitalisation of public sector banks, the economist said Indian forex reserves are not earned by an excess of exports over imports. "They are borrowed reserves built up from foreign inflows that create liabilities. Reserves have to be kept in a liquid form and capitalvalue preserved to meet repayment obligations," she said, adding they give security but are costly. According to Goyal, the best way to prevent excessive reserve accumulation is to increase absorption of foreign inflows in productive investment. "Until this happens, inflows could be mitigated using market-based capital flow management tools. A push for better international regulation and safety nets should also continue," she said. Replying to a question on the RBI's proposed digital currency, Goyal said correctly designed digital currency would have many advantages. "It could build on India's exemplary innovations in payment systems, ease cross-border flows, reduce costs, improve transparency, financial inclusion and monetary policy transmission all in partnership with banks," she said. On the Asset Monetisation Pipeline programme, Goyal said this a good innovative addition to the toolkit for financing new infrastructure. She pointed out that private participation is easier since there is no project risk, which is the most difficult for private players to handle. "But PPP contracts have to strike a fine balance between government revenues, private profits and reasonable user charges. Good regulation is a prerequisite to ensure the latter," she cautioned. Asked if high CPI and WPI inflation is a matter of concern, she said inflation is currently within tolerance bands. bottlenecks and should be transient, provided the government undertakes complementary supply-side actions," she noted. On what else can the RBI do to help economic recovery, the eminent economist said the RBI has done a lot through timely yet temporary measures that limit long-term dependence and risky-behaviour. According to her, some measures are already reversed. "Targeted liquidity programmes that ensure liquidity reaches every corner of the economy should continue. "Further normalisation has to be slow and gradual conditional on recovery so as to anchor inflation expectations yet sustain growth and ensure financial stability," she said. Asked what fiscal measures are necessary to support households in distress, Goyal said that the fiscal deficit is already in double digits and interest payments take up the biggest chunk of revenue. "Given our very large population, protection transfers of the advanced economy type would require our deficits to rise to 50 per cent of GDP, which is not feasible," she said. Noting that funds have to be well and carefully used, she said that free food helps the very poor and disabled but the best targeted support for most households in distress is to increase job availability and capacity to work through better support for health, training and education. "The focus on infrastructure is also useful since it creates jobs now and makes it easier to work later," she said.
Source: Economic Times
The Niti Aayog was responding to amendments proposed to the Consumer Protection (ECommerce) Rules, 2020. It pointed out that issues related to competition, law enforcement, intermediary liability and data protection did not fall within the ambit of the Department of Consumer Affairs and should be dealt with by the respective ministries, which have the competence to handle complex issues. ET has seen Niti Aayog’s July 14 response. The Niti Aayog has rejected some of the key amendments proposed by the Department of Consumer Affairs on ecommerce. It said the draft rules in their present form go beyond the realm of consumer protection. This could lead to delays in firming up the consumer protection rules for ecommerce in India.
Source: Economic Times
While sales of two-wheelers and passenger vehicles have picked up in June and July, the improvements come off a low base; apart from tractors no segment of the auto space is really doing well. Unemployment, while off its peaks, is still high. Again, there has been a slight recovery in both urban and rural spends but unless many more job opportunities are created and wages increase consumption spends will falter post the festive season. Certain sectors such as IT, BFSI and e-commerce are no doubt hiring in big numbers but the recruitment is restricted to certain segments. In general, employee costs for the corporate sector increased by just about 2.5% in the June quarter over the March quarter. Indeed, while analysts expect strong earnings growth for FY21-23 of around 25%, the bulk of the increase is coming from commodities, financials, industrials and power. To be sure, there has been a good pick up in E-Way bills and GST collections have been robust, but analysts at Edelweiss, for instance, believe the consumption-facing sector is unlikely to see any strong revival in demand. Private consumption accounts for about 55% of GDP and grew at just 2.7% y-o-y in Q4FY21 despite the help from a weak base. The bright spot has been exports which have fared exceedingly well on the back of a good global recovery. While sales of two-wheelers and passenger vehicles have picked up in June and July, the improvements come off a low base; apart from tractors no segment of the auto space is really doing well.
Source: Financial Express
Approval has already been issued for the establishment of 97 economic zones The government is focusing on bigger investment, both local and foreign; to generate jobs and fast-track development to help the economy offset the adverse impact of the Covid19 pandemic. They (the government) will take effective steps to build infrastructures and provide other policy supports to improve the investment-friendly environment, according to an official document obtained by UNB. To increase investment and generate employment, it said, steps have been taken to establish 100 economic zones across the country, which will provide employment opportunity of an estimated one crore people. Approval has already been issued for the establishment of 97 economic zones. It said that production has already been begun in 9 economic zones and the development work in 28 economic zones is in progress, which can offer employment to around 40,000 employment seekers. “In addition, employment opportunities for another 800,000 people will be created,” the document added. Till date, investment proposal worth $27.07 billion from a total of 210 investors has been received in these economic zones. “Of the total amount about $1.60 billion is foreign investment.” The largest Economic Zone in the public sector 'Bangabandhu Sheikh Mujib Industrial City' is being developed in Mirsarai, Sonagazi and Sitakunda Upazilas on 30,000 acres of land as a planned and modern industrial zone. Seminars-workshops, road-shows and trade shows are being organized and sponsored at home and abroad to attract investment. Through these arrangements, as per the document, Bangladesh can identify new investors, which will help augment investment. On the other hand, the government is laying special emphasis on the implementation of projects under Public-Private Partnerships (PPP) to attract investment required for the implementation of the government's development plans. At present, as many as 76 projects are scheduled to be implemented under the PPP, against which the investment worth $27.76 billion has been mobilized. One project under PPP has already been implemented and 6 more projects are under implementation. The process of bringing Customs Bond Management under automation is underway so that the manufacturing activities of export-oriented industries like the readymade garments industry also come under the Customs Bonded System. As per the official paper, the tender process for procurement of relevant solutions and software for automation has been completed. “It is expected that this will bring dynamism in the production and exports of all types of export-oriented industries.” Meanwhile, the government has taken massive reforms programs to improve its position in the World Bank's Ease of Doing Business Index. According to the latest World Bank annual ratings, Bangladesh rose to a rank of 168th among 190 economies in the global ease of doing business index in 2020 from 176th in 2019. As per the World Bank Report, reduced registration fees, improvement in case of getting new electricity connection and improved access to credit information helped the country to level up by 8 notches. The World Bank's Ease of Doing Business Index is used to indicate how well the business environment of a country performs. “Bangladesh's position in that index has improved from 176th to 168th in 2019 and it has been included in the top 20 countries that have undertaken massive reform activities to improve the Ease of Doing Business Index,” the document mentioned. The Bangladesh Investment Development Authority (BIDA) is working to improve further Bangladesh's position in the index within double digits, i.e. below 100. To this end, BIDA has set up a specialized team to accelerate implementation of various reform activities, the document added. The One Stop Service (OSS) portal system has been in place since 2019 to provide all investment related services from a single platform. Services of various companies related to investment are being added to the portal in phases. A total of 42 services of 12 companies are being provided online in the current financial year with the target of providing 154 investment services of 35 companies through One Stop Service (OSS) portal. The remaining services will be added to the portal in the next financial year. It is expected that Bangladesh's position will improve significantly, the document added.
Source: Dhaka Tribune
Sustainable fashion is a movement fostering eco-friendly textiles and fashion products, also addressing the environment, human and animal welfare exploitation. It has garnered enough attention to be a cool fashion revolution. Fashion goes by just as fast as time. Many of us try to catch the ropes of what’s trendy and hip. With thousands of growing brands, our wardrobe is filled with impulse and discount buys, some of which still have the tags on. However, would you feel any different if you knew the impact of a piece of clothing you own had on our environment? If you knew, for example, that 6,800 litres of water is consumed to produce a pair of jeans? According to the report by Ellen McArthur Foundation released in 2018, the global textile industry produces more greenhouse emissions than international aviation and shipping combined. The fashion industry stands second only to petroleum as the biggest polluter of the environment,” said Bharati Ramachandran, Director – Outreach of the Federation of Indian Animal Protection Organisations (FIAPO). She continued that the report also states that over 150 million tonnes of clothing waste is expected to clog landfills by 2050. Currently there’s no mainstream technology to tackle this fashion-waste issue. “This clearly is a human-made issue. There’s a definite way out from misusing global natural resources and still being able to thrive on fashion trends by simply taking a step forward – towards sustainability,” she told indianexpres.com Sustainable fashion is a movement fostering eco-friendly textiles and fashion products, also addressing the environment, human and animal welfare exploitation. It has garnered enough attention to be a cool fashion revolution. Here are a six simple steps to help you explore sustainable fashion:
Laying the foundation to embrace sustainable fashion
Buy what you need is the mantra. Mostly our wardrobes are stacked with clothes from impulse-buying sprees. Now that everything is at the tip of our fingers, filling carts is a convenient way to shop. Production and consumption of sustainable clothing are rooted in being eco-friendly and for long term use. For instance, just by wearing alreadypurchased clothes for an extra nine months, you will reduce your carbon, energy, and waste footprint by as much as 20-30 per cent.
Paradigm shift in perception about clothes
Fashion is so much more than just apparel. It reflects our personalities, unique taste in colours and textures, culture. It is a mode of self-expression. That is why our perception of fashion matters too. To do this, we need to re-evaluate our relationship with clothes and redefine the bigger picture – what is old, what is waste, and what is of value to us. Clothes that are used for a while can be easily repurposed or recycled into new garments; we can use them for patchwork or as household items. Sustainable fashion is about understanding the social and environmental costs of fashion and our buying habits. Wouldn’t we feel better if we wore something that does its bit towards saving the planet?
Function or desire?
Defining conscious consumption A positive beginning to implement sustainability in your wardrobe is to take a closer look at it and commit to buying only what is essential, what we are likely to use. In addition, choosing quality over quantity ensures long-term use.
Being local and vocal
Sustainable brands come in many forms – fair pricing, ethical production practices including workers’ rights and safe working conditions, no use of child labour, no use of animals, and others. Did you know according to The Food and Agriculture Organization, more than 3.8 billion cows and other bovine animals are used in leather production each year – around one animal for every two people on the planet. The animals used for fur, feathers and skin have a disturbingly high demand. Brands that practice fair wages and equality, that do not exploit animals, and prevent environmental degradation, are rooted in sustainability. Becoming a conscious consumer, supporting local, homegrown brands that curate clothing from natural fibres with zerowaste is a good way to let our clothes speak and buck the trend of fast fashion.
What about fibres and dyes?
Recycle and natural! Chemical dyes conventionally used in the fashion industry are harmful to the environment. What can we do? A good way to go about this is finding materials that are www.citiindia.org 34 CITI-NEWS LETTER Global Organic Textile Standard (GOTS) certified. Many sustainable clothing brands are now recycling fabric waste, using natural dyes and creating handcrafted patchwork pieces and other recycled products.
Educate and empower for sustainable fashion
Conventional fashion companies often outsource the production to more vulnerable and economically underdeveloped countries. They, in turn, are exploited for cheap labour. So while we research the latest trends, fashion tips, what to wear, and what not to wear, let’s do some research on how our clothing can be fashionable, yet sustainable.
Source: Indian Express
