India's exports jumped 45.17 per cent to USD 33.14 billion in August on account of healthy growth in segments like engineering, petroleum products, gems and jewellery and chemicals, even as the trade deficit widened to USD 13.87 billion, according to the commerce ministry's provisional data. Imports in August rose 51.47 per cent to USD 47.01 billion, as against USD 31.03 billion in the corresponding month of 2020. The trade deficit in August 2020 was USD 8.2 billion. It stood at USD 55.9 billion during April-August this fiscal as compared to USD 22.7 billion during the same period of the previous year. Exports during April-August 2021 grew by 66.92 per cent to USD 163.67 billion, the data showed. Imports during April-August this fiscal rose by 81.75 per cent to USD 219.54 billion. Oil imports in August rose 80.38 per cent to USD 11.64 billion, while gold imports jumped 82.22 per cent to USD 6.75 billion. Exports of engineering, petroleum products, gems and jewellery and chemicals rose by about 59 per cent to USD 9.63 billion, 140 per cent to USD 4.55 billion, 88 per cent to USD 3.43 billion, and 35.75 per cent to USD 2.23 billion, respectively. Commerce and Industry Minister Piyush Goyal tweeted: "India galloping towards USD 400 billion merchandise export boost to local businesses in capturing global markets." Commerce Secretary B V R Subrahmanyam said the numbers reflect healthy growth. "I am very confident of achieving the USD 400 billion exports target for this fiscal. It will be a solid 30 per cent jump," he told reporters. Asked about container shortage issues being raised by exporters, he expressed confidence about resolution of the matter in the next 3-4 days. "Container issue is there in the world and here also.. The Cabinet Secretary yesterday held a meeting on this. Container rates have risen by 300-500 per cent. "Today also a meeting was held in the shipping ministry. We are doing some things and I am confident that in the next 3- 4 days some solutions will come out," the secretary said. Goyal would hold a meeting on the matter with different ministries next week as it needs the attention of ministries like railways and shipping. There can be two types of solution for the problem -- short-term and long-term, the secretary said, adding the long-term remedy includes increasing production of containers. On this issue, Hand Tools Association President S C Ralhan suggested the government can ask shipping lines to import 1 lakh containers into India as rising prices would hurt the country's exports. "There is a huge congestion at Chinese and Los Angeles ports...due to COVID related restrictions. High rates are impacting our cost competitiveness," Ralhan said, adding increasing shipping freights are also impacting the shipments. Former president of the Federation of Indian Export Organisations (FIEO) S K Saraf too said the container shortage and prices issue would impact exports and the government should take some strong action to resolve the matter. "Closed government-owned container factories should start work again as they can make 20,000-25,000 containers per month. Overall container production also needs to be increased," Saraf said. FIEO President A Sakthivel said the continuous growth in exports since March this year augurs well for the economy. "Steady recovery in global trade added with the expectation of buoyant order booking position for the coming months has also led to such continuous growth in exports," he said. ICRA's Chief Economist Aditi Nayar said with merchandise imports continuing to scale up, even as exports receded from their all time high, the trade deficit widened to a higher than anticipated USD 13.9 billion in August, marking a four month high. "We expect the current account to record a modest deficit of USD 4-6 billion in the ongoing quarter," she said.
Source: Economic Times
Pointing out that services make up 71% of UK's GDP and 54% of India's, the statement released after India-UK dialogue said both countries recognise importance of services in their economies India and the United Kingdom on Thursday expressed their commitment to working out a free trade agreement and said the two countries would be ambitious while negotiating on services in the deal. "We agree to be ambitious when considering services in the forthcoming FTA negotiations," said a joint statement by finance minister Nirmala Sitharaman and her UK counterpart Rishi Sunak. Pointing out that services account for 71 per cent of UK's GDP and 54 per cent of India's, the statement released after India-UK Economic and Financial Dialogue said both countries recognise the importance of services in their respective economies. Meanwhile, the UK welcomes India on junking retrospective income taxation and raising the cap on foreign direct investment in insurance from 49 per cent to 74 per cent, besides removing the ownership and control requirements in the sector. It should be noted that Vodafone, which is one of the 17 companies embroiled in a retrospective taxation dispute with India, is a UK-based company. The UK said junking of retrospective taxation will strengthen the business environment and is part of India's move on improving ease of doing business. The UK requested the Indian finance minister for changes in the offer for participation for the reinsurance regulation so that all onshore reinsurers are given equal preference for participation in reinsurance placements. On privatisation, the joint statement said the UK will work with DIPAM to share its experience through a series of workshops. The two sides agreed to explore facilitating dual listing of green, social and sustainable bonds on the London Stock Exchange and Gift City exchanges. Both sides agreed to build on RuPay cards and explore options for enhancing cross-border payments between the UK and India.
Source: Business Standard
The 11th India-United Kingdom Economic and Financial Dialogue (EFD) was held here today, virtually chaired by Indian Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman and the United Kingdom Treasury Chancellor Mr. Rishi Sunak. The Indian delegation included Governor RBI, Chairman SEBI, Chairman IFSCA, Secretary Economic Affairs and other representatives from Ministry of Finance, Ministry of External Affairs and Indian High Commission, UK. The UK delegation included Governor Bank of England, CEO Financial Conduct Authority, Economic Secretary and other representatives from UK HMT. The Dialogue, inter alia, covered discussions on economic cooperation on multilateral issues, including G20 and COP26. Both sides deliberated on furthering of Financial Services collaboration with special emphasis on Fin-Tech and GIFT City, annual IndiaUK Financial Market Dialogue and measures underway to reform financial markets. Infrastructure development and promotion of sustainable finance and climate finance were also discussed. Private sector initiatives under India-UK Financial Partnership (IUKFP) and India-UK Sustainable Finance Working Group including its progress were also discussed. The Climate Finance Leadership Initiative (CFLI) India partnership was launched today by both sides which aims to work with financial institutions, corporates, and existing sustainable finance initiatives to accelerate efforts to mobilise capital into India. Both sides agreed to continue to work together to mobilise finances via multilateral and private means and sharing relevant experience, including of the UK’s upcoming sovereign green bond issuance. The 11th Economic and Financial Dialogue concluded with adoption of Joint Statement by Union Finance Minister and Chancellor of Exchequer of United Kingdom and release of the Joint Statement on Climate Finance Leadership Initiative (CFLI) India partnership.
Source: PIB
Commerce secretary BVR Subrahmanyam exuded confidence that, given the robust growth so far, the country will achieve the ambitious export target of $400 billion for FY22. Last fiscal, India could ship out goods worth only $291 billion due to the Covid outbreak. Merchandise exports surged 45% in August from a year before and over 27% from the pre-pandemic level (same month in FY20), buoyed by an economic resurgence in advanced markets and elevated global commodity prices. Imports, too, jumped over 51% from a year earlier and 18% from the pre-Covid level, signalling a broader trade recovery. Goods exports have now crossed the pre-Covid level for six months in a row. Exports in August touched $33.1 billion, while imports stood at $47 billion. Given the elevated imports, trade deficit hit a four-month high of $13.9 billion. Outbound shipments in the first five months of this fiscal rose to almost $164 billion, recording a jump of 67% yo-y and 23% from the same period in 2019. Commerce secretary BVR Subrahmanyam exuded confidence that, given the robust growth so far, the country will achieve the ambitious export target of $400 billion for FY22. Last fiscal, India could ship out goods worth only $291 billion due to the Covid outbreak. Of course, as analysts have pointed out, export growth had remained subdued even before the pandemic — outbound shipments rose about 9% in 2018-19 but again shrank by 5% in 2019-20. So, only a sustained uptick over the next few years would help India recapture the lost heights. Importantly, core exports (excluding petroleum and gems and jewellery) shot up by 32% in August from a year before, lower than the 45% growth in overall merchandise exports, mainly due to a rise in global crude oil prices and resurgence in gems and jewellery exports after last year’s setback. Still, the growth remains encouraging, given the supply challenges posed by Covid. Similarly, core imports rose 34% y-o-y and 3% from the level witnessed in August 2019. Overall, goods imports in April-August stood at $220 billion, up 82% from a year ago but only over 4% from 2019. Among the key performers on the export front, outbound shipment of petroleum products surged by 140% in August, gems & jewellery 88%, engineering goods 59%, cotton yarn, fabrics, made-ups and handloom products 56% and electronics 31%. Similarly, imports of iron and steel jumped by 108% in August, followed by pearls, precious and semi-precious stones (93%), gold (82%) and petroleum (80%). A Sakthivel, president, FIEO, stressed that many labour-intensive sectors were major contributors to the robust performance, which itself is a good sign as it will further help job creation. However, imports clocking $47 billion, with a year-on-year surge of 51% in August should be analysed, he added.
Source: Financial Express
Chief Minister Shivraj Singh Chouhan on Wednesday said that Madhya Pradesh has huge potential for investment in the textile sector. Work is being done to make the state a textile hub, which will provide employment opportunities to a large number of people.The Chairman of Sagar Group, Sudhir Kumar Agrawal, met Chief Minister Chouhan at secretariat on Wednesday and discussed about investment in the state. Agrawal informed that in the field of textiles, an investment of Rs 1000 crore has been made by Sagar Group in the state, in which about 4000 people have got direct employment. Sagar Group is also soon coming up with a Multi Specialty Hospital on Hoshangabad Road in Bhopal, which will provide employment to about 1000 people. The group is working in the textile sector, food processing sector, real estate and education sector in the state. In another event, Chouhan on Wednesday said that Indore is the engine of growth for Madhya Pradesh. The state government will provide all possible support to make Indore’s a buzzing international airport. Chouhan said that Bhopal lags behind when it comes to air connectivity, adding that serious efforts are required to increase air connectivity in Rewa and Satna. The CM was virtually addressing the inauguration programme of airlines from Gwalior and Indore. Chouhan virtually launched the international flight from Indore to Dubai and the airline services from Gwalior to Delhi and Indore from his residence on Wednesday. Air India will provide air services between Indore and Dubai once a week on Wednesdays. IndiGo flights will be available daily from Gwalior to Delhi and Indore. The CM said there is a need for international airports at Indore and Bhopal to promote investment, industry, trade, tourism and export of agricultural products. Along with this, it is also necessary to increase air connectivity from Jabalpur and Gwalior. In this direction, the UDAN scheme of Prime Minister Narendra Modi has helped. Congratulating the people of Indore, Chouhan said that the city has created history by ranking first among the metros of the country in administering 100% first dose of vaccine. Union Civil Aviation Minister Jyotiraditya Scindia said that 58 airlines have been given green signal for Madhya Pradesh in the last 53 days. As a result, aircraft movement in the state per week has increased from 424 to 738. Air services have started for five new cities from Indore and four from Gwalior. A grand new airport will be established in Gwalior named after Rajmata Vijayaraje Scindia at a cost of Rs 500 crore. The railway station of Gwalior will be given a facelift at a cost of Rs 250 crore. Union Minister Scindia flagged off the new airlines from Delhi.
Source: Times of India
Commerce Secretary B V R Subrahmanyam on Thursday said that a number of Indian states, union territories, government departments, startups and corporates will participate in the six-month Expo 2020 Dubai that would begin October 1. He said the India Pavilion at the expo will showcase the country's march to becoming a $5 trillion economy and give a fillip to Indian business with a number of memorandum of understanding expected to be inked.
Source: Economic Times
Earlier, the State Government has provided incentives of Rs 450.27 crore to MSMEs under the restart package first on May 22 last year followed by Rs 453.64 crore on June 29, Rs 58.51 crore to food processing units on June 29, 2020 and now Rs 440 crore to MSMEs and Rs 684 crore to spinning mills Chief Minister YS Jagan Mohan Reddy will credit Rs 1,124 crore incentives on Friday to MSMEs, textile/ spinning mills which are providing employment to nearly 12 lakh people. The CM will remit Rs 440 crore to MSMEs and Rs 684 crore to textile/ spinning mills. It may be noted that the State Government provided incentives of Rs 450.27 crore to MSMEs under the restart package first on May 22 last year followed by Rs 453.64 crore on June 29, Rs 58.51 crore to food processing units on June 29, 2020 and now Rs 440 crore to MSMEs and Rs 684 crore to spinning mills. After the YSRCP government assumed power, 68 major industries started production with a capital of Rs 30,175 crore providing employment to 46,119 people. In addition, 62 major industries are coming up with an investment of Rs 36,384 crore to provide employment to 76,916 people. The State Government also cleared the dues of Rs 1,580 crore pending during the previous TDP regime. The State Government has been making efforts to attract investments of Rs 10,000 crore by setting up electronics units. YSR Electronics manufacturing cluster will be set up in Kopparthi at a cost of Rs 730.50 crore to provide employment to 30,000 people.
Source: The Hans India
Incentives to boosting exports in the 11-20th ranking States, with a product focus, is doable India’s merchandise exports in the last five years (FY17-21) have grown at an average annualised growth of 2.4 per cent, and at a similar business-as-usual scenario they are expected to touch $320 billion in FY22. The government, however, expects exports to touch $400 billion in FY22. To achieve it, India needs to grow at 27 per cent year-on-year in FY22. In FY20, the HighLevel Advisory Group had announced an ambitious goods export target of $618 billion by FY26. To achieve it, exports have to grow at a compounded annual growth rate of 16.3 per cent during the period beginning FY21, after considering the dip due to the pandemic.
State diversification
Though this export target may look high, it is easily doable if supported by the ‘middle10’ exporting States — these are those whose exports hover around the eleventh and twentieth rank in India’s overall exports. Though over the years there has been a lot of talk about export diversification of both products and markets from India, little thought has been given to the same from the States’ end. Upon dissecting export numbers of the States, it is observed that they have largely remain concentrated among the top ten in the country. There is no denying the fact that the State needs to play a pivotal role, but given that the targets are being set for the country, it is crucial for the Central Government to support those States which are being left behind, by making them amenable to exports. As in FY21, 84 per cent of India’s exports happens from the top 10 States, while the first five contributes 64 per cent alone. India’s foreign trade needs an all-inclusive growth in exports. A handful of States accounting for a large share of total exports does not augur well for the development of India’s export capabilities. An important aspect that comes to light upon analysing the products that are being exported from the various States, is that the top five exporting States exhibits an average product export concentration (PEC) of 71 per cent, while for the top ten it is 75 per cent. Analysis shows that the average PEC amongst the ‘middle-10’ stands at 85 per cent, that is, almost 10 per cent more than the top ten exporting States. PEC is found to be a critical element of the tenacity of a State to undertake exports. If the PEC is high in some of the States, it exhibits their inability to move up the export market given their concentration of exports to a handful of them. Here, PEC is calculated for top ten exported products from each State. Improving the export competitiveness of States can also lessen regional disparities through export-led growth and resultant improvement in standard of living. In fact, with the exception of Odisha, there is a strong correlation between a State’s contribution to India’s exports and the PEC.
Centre-State partnership
The role of the States cannot be looked at in silos by the Centre. The State can act as a facilitator to production of exports by creating the requisite infrastructure. As the Foreign Trade Policy is due, it is important that the policymakers give due attention to the growth of exports at the State level. While the importance of the State towards export growth is quite often highlighted, much more is required to be done by the Centre towards supporting the cause. Firstly, providing incentives at the State level would be helpful, to select industries which have grown in the last 20 years but have confined their growth to some pockets. For example, it is but ironical to find most of the big four-wheeler automobile companies being based either in the south or west of the country. If ports are the key reason, some of these companies could have been located in Odisha for example, but that has not been the case. To support such developments, the State government needs to extend innovative incentives to such key industries so that other States also grow in parallel. Secondly, given that export subsidies warrant WTO norms, the government can extend incentives to boost sales of identified products when done from States which has high export preference. For example, low-tech products like textiles, leather, etc,. which is location neutral and can exhibit productivity from any State, can flourish in a new jurisdiction if suitable incentives and environment are provided. The State government must also create a cooperative labour environment and provide adequate power to attract such industries. Thirdly, the listed companies could be offered some rebates if they set up manufacturing or production units in States which are not amongst the top ten exporting ones. They could set a ceiling on investment along with exports that would be required in such cases. Another possible step could be identifying products by the States which could be classified under geographical indicators (GI) and thereafter branded in the international market after they meet the globally acceptable standards. It is important to realise that the potential contribution of these ‘middle-10’ exporting States is crucial to achieving the $618 billion export target. This would require the Centre and States to work together.
Source: The Hindu Businessline
IT and Industries Minister KT Rama Rao requested Union Minister of Consumer Affairs, Food and Public Distribution Piyush Goyal for setting up of first National Design Centre (NDC) in Hyderabad for which a detailed project report (DPR) was submitted to the Central government. A representation was submitted to Goyal at his residence in New Delhi to extend financial support for establishing Kakatiya Mega Textiles Park in Warangal. For setting up of the NDC, based on the inputs received, a DPR was submitted indicating the activities which will be undertaken to make the NDC self-sustaining in approximately six years’ time post commencement of operations. The State Government will be able to support 50 per centof the deficit in operational funds requirement until the NDC becomes self-sustainable, on equal sharing basis with the Central government. The cost-sharing by State Government in operational expenditure will be in addition to the 30 acres of prime land provided free of cost in University of Hyderabad campus adjacent to National Institute of Animal Biotechnology (NIAB) in Gopanpally, Hyderabad. The State government is keen to develop this unique and first-of-its-kind institution in India, in Hyderabad, and would like to start the interim activities of envisioning, planning, identifying prospective stakeholders and working towards forging long-term sustainable partnerships for the NDC. “We look forward to your approval of our proposal”, he said. Telangana government has identified textiles and apparel as one of the priority areas under industrial policy. “We have accordingly decided to set up a large-scale textile park at Warangal which will be eventually spread over 2000 acres”, he said. “In the first phase, we have agglomerated 1200 acres and have identified marquee names as anchor clients including Youngone from Korea and Kitex from Kerala. The state government have already obtained environment clearance for the park and have also been able to put in all the required basic infrastructure like water and power connection for construction purposes, road connectivity etc,” he explained. For the last five years, the State government is requesting the Central government to support by declaring this textile park as a Mega Textile Park and provide funding support in order to take up external infrastructure such as dedicated water and power lines, Rail Over Bridge as well as common amenities like CETP, Technical Textile Testing Lab, warehousing, Training Centre, et cetera. Our request was kept pending since a long time under the pretext that the Union Government is designing a scheme for Mega Textile Parks. “Since MITRA scheme was under finalization, we request that the Kakatiya Mega Textile Park in Warangal be approved as the first beneficiary under the scheme given that no other mega textile park in the country is in such an advanced stage of implementation,” he said.
Source: Telangana Today
For the first time since Covid outbreak, revenue of the operators is outpacing income and prompting them not only to replace older trucks but also expand fleet Freight rates across key trunk routes rose an average 4.5-5 per cent in August. The increase - the third in three straight months since the lockdown lifted - was led by higher exports and increased cargo offering from all sectors, said the Indian Foundation of Transport Research and Training (IFTRT) on Thursday. “If one looks at the absolute rates on each of the routes, this is the highest for the month of August since 2019,” said S P Singh, senior fellow, IFTRT. As a result, the trucking and transport business has been fairly remunerative and fleet owners have been able to pass on all operating costs and yet recover remunerative truck rentals/retail freight in the open market transport business. For the first time since the outbreak of the pandemic, the revenue of the operators is outpacing income and prompting them to not only replace older trucks, but also expand the fleet. A stable diesel price and low interest rate for finance have helped transporters' operating costs, said Singh. India’s industrial production grew 13.6 per cent in June, from the year-ago period, due to a low-base effect. "The steep decline in the number of daily confirmed Covid cases and increased economic activity have driven the sequential improvement in industrial activity in June. This improvement has continued into July, as reflected in the manufacturing PMI, which was back in the expansion territory after having contracted in June,” said CARE Ratings in a note. Taking a cue from improved macros, commercial vehicle makers bumped up despatches in August, resulting in a sharp year-on-year (YoY) growth. Automobile firms in India count despatches as sales. Albeit on a low base, cumulative sales for the top four commercial vehicle makers, including Tata Motors, Ashok Leyland, Mahindra & Mahindra (M&M), and Eicher Motors, rose 23 per cent YoY to 50,886 units, from 41,202 units a year earlier. The despatches also showed an improvement from July for most companies, with the exception of M&M that saw steep decline – sequentially as well as YoY of 50 per cent and 42 per cent, respectively. According to Singh, fleet owners have reverted to fleet replacement and even expanding their intermediate light commercial vehicle sales running on compressed natural gas since diesel prices have shot up since January. But not everyone agrees with IFTRT's views. Bal Malkit Singh of Bal Roadways says while the increase in freight rates is encouraging, there is scope for further correction as it is still not in proportion to the increase in the overall operating costs. “The prices of diesel and tyres have risen sharply. Even toll charges are higher. The idling time for my trucks is still high. So what's the change?” asks Singh. An analyst at a research firm concurs. "The freights have gone up, but the road transport sector is still not out of the woods,” adds the analyst.
Source: Business Standard
"At the same time, on the offline side, we are making the retail experience richer. In the future, the stores will not just be a sales medium; they are actually going to be experience mediums where the brand emergence happens. So we are investing a lot to make our store experience richer, more digital, more omni." Kulin Lalbhai, Director, NSE -1.04 % , shares his business outlook. Edited excerpts from his interview to ET Now: ET Now: How are you planning to gain market share, make more tie-ups or expand? Any fund raising?In essence, how will Arvind look like in the postCovid world? Kulin Lalbhai: Covid was a huge shock to the entire lifestyle and apparel value chain because of the shutdowns and the lack of social interaction. There definitely was a large drop that happened in the past 14 months. But the good news is that with normalcy returning the markets have come back very quickly. In fact, after the second wave we are already at more than 90% of pre-Covid levels. And India in general is at a very early stage of the movement to branded apparel. Over the next few decades, we will see middle-class consumption grow dramatically in this category. A lot of people will be moving from unbranded & unorganised to branded organised products. So we are very excited about the long-term and medium-term opportunity in the apparel space. Some of the things that have happened post Covid include a reset in terms of the channels of consumption. Digital has become a huge growth opportunity. Already, 25% of our business is digital. We now have a Rs 1,000-crore digital business. And it's growing even on a large base at close to 30% year on year. This allows our products to reach every pin code of India. Even on the offline side, across our six brands, we will be opening anywhere between 150 to 200 stores a year. There is a lot of expansion which will come in small town India because that is where the new consumption is coming in. Besides, there are new categories we are getting into such as footwear, innerwear, kids' wear. The focus of the company is these six large, profitable brands. As we grow at around a 15% year on year, we expect a strong growth in operating leverage and profitability as we scale up. A lot of retail players are saying thatthe good thing that has happened is only people who wantto shop actually come in. Whatis your take on this? How is Arvind preparing for a better customer experience in the backdrop of a higher conversion? I think this is a transient phase where serious shoppers with a very clear reason to purchase are driving consumption. But you know, in a normal world, you will also want the impulse customers to come back. As the malls open up, multiplexes start having good content and new movies get released, and as we move towards the festive season, we are quite confident that the impulse purchase will also come back. Once that comes back, overall we will get back into a growth phase. But right now, of course we are focussed on digital in a very strong way. We believe that is a great way to allow us to reach our customers who are still not coming to the malls. At the same time, on the offline side, we are making the retail experience richer. In the future, the stores will not just be a sales medium; they are actually going to be experience mediums where the brand emergence happens. So we are investing a lot to make our store experience richer, more digital, more omni, so that our customers can really experience the brand holistically. In this FY, will the industry make up for the growth that has been lost? It might be a little difficult to make up for Quarter One. But I think if we compare the second half of this year — assuming we do not have another big flare-up of Covid — we believe the second half of this year should be a growth on FY19, because you know without disruptions we believe consumption will be coming back.
Source: Economic Times
Thus, we urged you to not manipulate the data or conduct any corruption, collusion, and nepotism. The Industry Ministry launched the machinery/equipment restructuring program for the fabric refinement and printing industry to support performance of the textile and textile product (TPT) industry impacted by the COVID-19 pandemic. "We launched the program as one of the incentives for the textile industry sector to improve its performance amid the pandemic as well as part of the implementation of the Making Indonesia 4.0 roadmap," Industry Minister Agus Gumiwang Kartasasmita stated at the virtual launch and dissemination of information on the program here on Wednesday. The Making Indonesia 4.0 roadmap is a plan to revitalize the national manufacturing sector by using the industrial technology 4.0 and is expected to boost the global competitiveness of domestic industries. Furthermore, the minister noted that the TPT industry was one of the strategic industrial groups and national priorities in accordance with the National Industrial Development Master Plan (RIPIN). It earned $10.55 billion from exports and absorbed 3.43 million workers in 2020. In the second quarter of 2021, the sector still experienced a contraction of 4.54 percent year-on-year, albeit a slight improvement of 0.48 percent as compared to the previous quarter. However, the sector's exports during the January-June 2021 period had increased by 13 percent to reach $5.87 billion, while investment recorded a rise of 27 percent. Hence, although the industry was battered by the pandemic, the ministry believed that the program will be able to boost efficiency and productivity of the sector. "In August, contraction in the manufacturing sector as the result of enforcement of the community activities restrictions had subsided as the Purchasing Managers' Index of Indonesian manufacturing stood at 43.7. Moreover, it has increased as it reached 40.1 in July," the minister noted in a written statement. It is the continuation of the same program implemented in the textile, footwear and leather industry during the 2007-2015 period. Implementation of the program during the period had a positive impact on the industry's performance, with an increase in the machinery/equipment investment of Rp13.82 trillion, the textile industry production capacity by 21.75 percent, production realization by 21.22 percent, the energy efficiency value of 11.86 percent, the sales volume both domestically and of exports by 6.65 percent, and the number of workers of 28,295 people. Hence, the ministry reissued the policy in 2021 to enhance the technology in the textile industry to boost efficiency and productivity of the sector. “The implementation of this policy is based on Regulation of the Industry Minister Number 18/2021 on the Restructuring of Machinery and/or Equipment in the Fabric Refinement Industry and the Fabric Printing Industry,” Kartasasmita stated. The 2021 machinery/equipment restructuring program will focus on the fabric refinement industry and the fabric printing industry in a bid to address the weakest segments in the structure of the textile and textile product industry while strengthening the capacity and productivity of the industry in order to achieve the 35-percent import substitution target by 2022. The import substitution program aims to reduce import dependence and strengthen domestic industries by encouraging production and investment of substitute goods in domestic industries as well as implementing the 40-percent local content requirement policy. Meanwhile, the machinery/equipment restructuring program is implemented on account of the fact that the largest share of imports in the textile sector is that of finished fabric products, reaching 48.4 percent of the total imports of the TPT industry of $7.2 billion in 2020, the minister stated. Furthermore, Kartasasmita remarked that the program will utilize the government's budget that will be accounted correctly, legally, and transparently. "Thus, we urge you to not manipulate the data or conduct any corruption, collusion, and nepotism," he affirmed. Director General of Chemical, Pharmaceutical and Textile Industries at the ministry Muhammad Khayam explained that the program was implemented by providing 10- percent reimbursement of the total investment for the imported machinery or equipment or 25 percent for domestic machinery or equipment. "The available budget allocation for the 2021 fiscal year reaches Rp3 billion, with a target of at least six companies participating in the program. If there is any additional budget, the target will be increased," he stated.
Source: Antara News
More than seven months into the Biden administration, American businesses say they are growing increasingly frustrated by the White House’s approach to China, with confrontational policies imposed during the Trump era still in place and President Joe Biden offering little clarity about economic engagement with the world’s second-largest economy. The relationship between the two economic superpowers remains deeply fractured. US import duties still exist on roughly $360 billion worth of Chinese goods, and almost all of the exemptions that shielded more than 2,000 products from those tariffs have expired. A thicket of export controls and bans are still in place, leaving US technology giants such as Qualcomm, Intel and Google in the lurch over how to approach the Chinese market and offering little hope that the decoupling of the world’s two largest economies will be reversed anytime soon. To the dismay of some American business leaders, Biden has amplified some of the Trump administration’s punitive moves. In July, the Biden administration expanded the list of Chinese officials under sanctions by the United States for their role in undermining Hong Kong’s democratic institutions. In June, the president issued an executive order adding more Chinese companies to a prohibition on US investments in Chinese firms that have links to the country’s military or that sell surveillance technology used to repress dissent or religious minorities. Yet Biden and his top advisers have yet to elucidate how they view economic relations with Beijing, saying they will make the administration’s approach known once a broad review of China trade policy concludes. But the review has stretched on for months with no public timeline for its conclusion. As a result, businesses are lobbying heavily for the tariffs to be removed, which would make it easier for them to rely on factories in China instead of making investments in the United States or elsewhere. And they want assurances that they can do business with a financially important market. “There has been frustration for the business community at the lack of concrete China economic policy,” said Charles Freeman, senior vice president for Asia at the US Chamber of Commerce. “It’s not as if this crowd came in without any experience or any preconceived thinking about China.” The future of the US trade relationship with China is one of the biggest global economic questions confronting Biden and his advisers. China has thrown huge resources behind its economic ambitions and plans to dominate cutting-edge industries like artificial intelligence and robotics by providing government subsidies to Chinese firms and using other tactics, including espionage. While the Trump administration signed an initial trade deal with China that included purchase commitments for agricultural and other goods, the agreement failed to address a number of major concerns, including China’s stateowned enterprises and industrial subsidies. During his White House bid, Biden assailed President Donald Trump over his trade war and promised to enlist allies to counter China over its trade practices. Since taking office, Biden has resolved a long-standing trade spat with the European Union and persuaded European officials to adopt a more assertive trade policy toward China this year. And he has pitched his infrastructure plan as a way to counter Beijing, saying it would “put us in a position to win the global competition with China in the upcoming years.” But the administration has said little about whether it intends to restart economic talks and address outstanding issues, including tariffs. At times, officials have offered somewhat discordant views. Treasury Secretary Janet Yellen told The New York Times this summer that tariffs had harmed US consumers, but she has also warned that Chinese subsidies for exporters pose a challenge for the United States. The US trade representative, Katherine Tai, has described the tariffs as providing leverage. Asked Wednesday about the administration’s review of the tariffs, Jen Psaki, the White House press secretary, said, “I don’t have any timeline for you on when that review will be completed.” Business impatience with the administration’s approach is mounting. Corporate leaders say they need clarity about whether American companies will be able to do business with China, which is one of the biggest and fastest-growing markets. Business groups say their members are being put at a competitive disadvantage by the tariffs, which have raised costs for US importers. “We should be doing everything we can to increase China’s use and dependence on American technology products,” Patrick Gelsinger, chief executive of Intel, said in an interview last week. The administration is “struggling to lay out a framework for how they have a policy-driven engagement with China,” he said. “To me, just saying, ‘Let’s be tough on China,’ that’s not a policy, that’s a campaign slogan,” he added. “It’s time to get to the real work of having a real policy of trade relationships and engagement around business exports and technology with China.” In early August, a group of influential US business groups sent a letter to Yellen and Tai urging the administration to restart trade talks with China and cut tariffs on imported Chinese goods. “The main kind of dilemma that companies face right now is just uncertainty,” said Craig Allen, president of the US-China Business Council, which organized the letter. “Will the tariffs remain in place? Are they in place in perpetuity? What is the exclusion process to request an exemption from the tariffs? Nobody knows.” Allen said his group had organized the letter because it wanted to make sure that businesses’ views, in addition to those of labor and environmental groups, would be taken into account during the Biden administration’s China review. “Many find it ironic that the Biden administration is following so closely the playbook laid down by the Trump administration on China,” he said. Other organizations that signed the letter included the US Chamber of Commerce and the Business Roundtable as well as groups representing sectors of the economy with close business ties to China, such as the Pharmaceutical Research and Manufacturers of America, the Semiconductor Industry Association and the American Farm Bureau Federation. “We’re now dealing with all these other supply chain disruption issues that are costing companies millions of dollars,” said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation, which also signed the letter and represents a sector that has become heavily dependent on imports from China. “To have the tariffs on top of that is difficult for planning purposes.” Business groups are not uniformly in favor of lifting tariffs. The National Council of Textile Organizations, which represents the US textile industry, wants the administration to keep tariffs on finished apparel and home textile products from China. “We have been pretty strong in our message to the administration saying please continue this approach on getting tough on China,” said Kimberly Glas, the textile group’s president and chief executive. Any decision on rolling back tariffs could also have domestic political implications in the United States, where a tough-on-China mentality has permeated both major parties. Any steps by the Biden administration to roll back Trump-era policies toward Beijing could be seized on by political opponents seeking to paint Biden as insufficiently tough on China at a time when the country is engaged in a rapid military buildup. When asked about the administration’s review of China trade policy, Tai has responded by saying she was aware that “time is of the essence.” However, she has refrained from offering a preview of what steps the administration may seek to take. “In terms of how we need to approach this trade relationship,” Tai said at a virtual event last week, “we need to approach it with deliberation.”
Source: Wionews
The country raked in $3.38 billion, riding on apparel shipments, especially knitwear products Bangladesh's export earnings made a strong comeback with a little over 14% growth yearon-year in August this year following a more than 11% slump a month ago. The country raked in $3.38 billion, riding on apparel shipments, especially knitwear products. However, the export receipts are still 8.84% short of the monthly target of $3.71 billion, according to data from the Export Promotion Bureau (EPB). In July and August combined, the earnings declined by 0.31% year-on-year, which was $6.87 billion in the same period last year and it remained 7.84% below the export target of $7.44 billion for the period, said the EPB. The readymade garment sector recorded an 11.56% growth year-on-year last month with exports worth $2.75 billion, up from $2.46 billion last year. But the apparel sector's shipment slightly decreased by 1.27% year-on-year to $5.64 billion in July and August in 2021. Except for jute and jute goods, all major sectors such as agriculture products, leather and leather products, home textiles, frozen and live fish, engineering products, pharmaceuticals, specialised textiles, plastic products have registered positive growth. Mohiuddin Rubel, director at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the growth in August was the result of shipments that had piled up due to factory closure on the occasion of Eid-ul-Adha in July. Exports usually decline in the month of Eid and shipments are often pushed back to the next month. So, the July growth was negative 11.02%, and August made it up, he said. "We are 6.16% behind the official target set for July and August," said Mohiuddin. On the back of high yarn prices, knitwear items continue to do better with 17.19% growth, while woven garments saw 4.48% rise in exports in August, he added. Dr Ahsan H Mansur, executive director at the Policy Research Institute of Bangladesh, said it is good news that almost all major sectors have experienced a good growth in August. This positive trend should continue. "The overall growth of two months is negative because there was a different picture in July [for factory closure]. We should not take the month's negative growth into calculation," he also said. The economist also hoped that export earners will perform better in the coming days as western countries have strongly recovered. Apparel exporters should focus more on maintaining compliance, setting up green factories and producing recycled products. In the coming days, brands will source more such products, he added. Ahsan H Mansur said, "We have to diversify our export basket. We need to develop at least 5-6 sectors that will earn at least $5 billion each to reduce dependency on the RMG sector. We have a few sectors that have crossed the $1 billion mark in the last fiscal year. BGMEA vice-president Shahidullah Azim said some backlogged stocks have been shipped in August as the country was under lockdown and Eid vacations in July. He also mentioned that apparel shipments will increase next month as they have received at least 20% higher orders. Bangladesh Tanners Association President Md Shaheen Ahmed said, "The leather sector did better in August as the European markets are making a good recovery."
Source: T B S News
Online trade promotion is currently considered as an effective solution for businesses to maintain contacts with their export markets and also a tool to learn about market trends, developments and demand. Online trade promotion is currently considered as an effective solution for businesses to maintain contacts with their export markets and also a tool to learn about market trends, developments and demand. The outbreak of COVID-19 in many countries has forced Vietnam’s import and export markets to take strong measures to contain the spread of the pandemic. This has hindered the organisation of traditional trade promotion activities of enterprises. Therefore, a change in the work is a must to create a leverage for industries and businesses to connect with and build brands in their export markets to overcome the pandemic. In fact, a shift from offline fairs to online promotion has helped increase export turnover and exploit new markets in the new situation. According to the Ministry of Industry and Trade, Vietnam’s total trade turnover in July is estimated at 55.7 billion USD, a month-on-month rise of 1.5 percent. Demand for imports remains high, as countries are speeding up vaccination against COVID-19 and reopening their doors, thus helping raise the demand for textiles, footwear, furniture and electronics from Vietnam. In addition, free trade agreements are being implemented in a more comprehensive and effective manner, and expected to continue promoting Vietnam's exports. Therefore, online trade connectivity is a golden key for the goods of Vietnamese enterprises to reach out to the world. General Director of the Hanoi Trading Corporation Vu Thanh Son said, with the cost equal to one tenth of that of face-to-face contact, online connectivity is currently a solution for businesses to maintain contacts with their export markets, as well as a tool to learn about market trends, developments and needs. Moreover, enterprises can do marketing globally, access information and conduct transactions with customers around the clock. However, experts advised enterprises not to rely only on state promotion programmes, but actively trade and connect online with partners around the world through the use of e-commerce platforms or social networks.
Source: Vietnamplus
Germany's annual consumer price inflation rose to a new 13-year high in August, according to preliminary data from the Federal Statistics Office, indicating increasing price pressures. Consumer prices, harmonised to make them comparable with inflation data from other European Union (EU) countries (HICP), rose by 3.4 per cent compared with 3.1 per cent in July. The national inflation rate (CPI) even soared to 3.9 per cent in August, hitting its highest since December 1993 when the economy boomed following German reunification, a global newswire reported. Europe's largest economy is trying its best to recover from the pandemic as companies struggle with supply shortages. Germany's preliminary consumer price figures do not include values for core inflation. German central bank chief Jens Weidmann has expressed concern over the prospect of the European Central Bank's low-interest-rate environment being extended for too long. Data released earlier showed German inflation outpaced wage growth in the second quarter as rising price pressures caused by the economic recovery and supply bottlenecks in manufacturing reduced the spending power of consumers. The latest data suggests wages will not keep up with inflation also for the rest of the year. In Spain, EU-harmonised consumer prices rose by 3.3 per cent year-on-year in August from 2.9 per cent in July, separate data from the National Statistics Institute (INE) showed. The German and Spanish figures indicate that euro zone inflation has strengthened further in August.
Source: Fibre 2 Fashion
